2015 Annual Report
Stock Abbreviation：Dongbei B Stock Code：900956
Huangshi Dongbei Electrical Appliance Co.,
Ltd.
2015 Annual Report
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2015 Annual Report
Important Notes
1.The Board of Directors ，Supervisory Committee，directors , supervisors and Senior Executives of the
Company hereby guarantees that there are no misstatement, misleading representation or important
omissions in this report and shall assume joint and several liability for the authenticity, accuracy and
completeness of the contents hereof.
2．The situation of the director who failed to attend
Position of the director who Name of the director who
Reason for failure to attend Name of proxy
failed to attend failed to attend
Director Ruan Zhengya Business trip Lu Yanying
3. Hubei Daxin Certified Public Accountants Co., Ltd. ( Special General Partnership) issued standard
unqualified auditors' report for the Company.
4. Mr.Zhu Jinming, Person in charge of the Company, Ms. Lu Lihua, Chief financial officer and the Ms.
Ma Li, the person in charge of the accounting department (the person in charge of the
accounting )hereby confirm the authenticity and completeness of the financial report enclosed in this
Annual Report .
5. The profit allocation plan or the capitalization from capital public reserve during the report period
examined by the Board of Directors.
Considering the interests of shareholders and the long-term development , the profit allocation plan of
the company in 2015 was as belows ：The profit allocation and the capitalization from capital public
reserve will not be conducted for the Company in the report period..
6.And forward-looking statement such as those involving the future operational plans in this report shall
not be considered as virtual prolmises of the Company to investors. And investors are kindly reminded
to pay attention to possible risks.
7. Whether the controlling shareholder and its related parties did not occupy the funds of the Company
for operation.
No.
8. Whether the Company did not provide guarantee in violation of specified decision-making procedure.
No.
9.Reminder of Major Risks：
The Company has described the possible risks in this year’s report in order to attract attention from the
investors. For more refer to the “ Report of the future development discussion by Board of Directors”.
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2015 Annual Report
Table of Contents
I. Definition
II. Basic Information of the Company and Financial index
III. Outline of Company Business
IV. Management’s Discussion and Analysis
V. Important Events
VI. Change of share capital and shareholding of Principal Shareholders
VII. Situation of the Preferred Shares
VIII. Information about Directors, Supervisors and Senior Executives
IX. Administrative structure
X. Information about the corporate bonds
XI.Financial Report
XII. Documents available for inspection
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2015 Annual Report
I.Definition
1.Definition
In this report, medium, the following words and expressions shall have the following meaning unless
otherwise defined:
Definition of frequently mentioned words and expressions
Company, The Company, We, Huangshi Dongbei Electrical
Refers to
Dongbei Electrical Appliance Appliance Co., Ltd.
Dongbei Group, Controlling Huangshi Dongbei Electromechanical
Refers to
shareholder Group Co., Ltd
Hubei Daxin Certified Public
Daxin, Daxin Certified Public
Refers to Accountants Co., Ltd. ( Special
Accountants
General Partnership)
Report period Refers to 2015
SSE Refers to Shanghai Stock Exchange
China Securities Regulatory
CSRC Refers to
Commission
The Securities Law of the People’s
The Securities Law Refers to
Republic of China
The Company Law of the People’s
The Company Law Refers to
Republic of China
The Articles of association of
Articles, The Articles of association Refers to Huangshi Dongbei Electrical
Appliance Co., Ltd.
RMB Yuan , RMB million
Yuan, Million Yuan, Billion Yuan Refers to
Yuan,RMB Billion Yuan
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2015 Annual Report
II. Basic Information of the Company and Financial index
I.Information of the Company
Chinese name of the Company 黄石东贝电器股份有限公司
Abbr. of the Chinese name of the Company 东贝B股
English name of the Company Huangshi Dongbei Electrical Appliance Co.,Ltd
English Abbreviation DONGBEI
Legal representative of the Company Zhu Jinming
II.Contact person and contact manner
Board secretary Securities affairs Representative
Name Lu Lihua Huang Jie
No.6, Jinshan East Road, Economic & No.6, Jinshan East Road, Economic &
Contact address Technology Development Zone, Technology Development Zone,
Huangshi City, Hubei Province. Huangshi City, Hubei Province.
Tel 0714-5415858 0714-5415858
Fax 0714-5415858 0714-5415858
E-mail stock@donper.com stock@donper.com
III.Basic Information about the Company
No.6, Jinshan East Road, Economic & Technology
Registered Address:
Development Zone, Huangshi City, Hubei Province.
Postal code of Registered address 435000
No.6, Jinshan East Road, Economic & Technology
Business Address
Development Zone, Huangshi City, Hubei Province.
Postal code of Business address 435000
Website： http://www.donper.com
E-mail stock@donper.com
IV.The Place for Placing the Annual Report and the Information Disclosure
Shanghai Securities Daily and Hong Kong Commercial
Newspapers for Information Disclosure
Daily
Internet Website for Publishing the Annual Report www.sse.com.cn
The Place for Placing the Annual Report Securities Dept. of the Company
V.Stock Profile
Stock Condition of the Company
Stock exchange for Stock Abbreviation
Type Stock Abbreviation Stock Code
listing (Before change)
Shanghai Stock
B share Dongbei B 900956
Exchange
VI.Other Relevant Information
Name Hubei Daxin Certified Public Accountants Co., Ltd.
Certified public accountants engaged ( Special General Partnership)
by the Company（Domestic） Office address 16/F, Zhiyin Media Square, No.31, Zhongbei Road,
Wuhan
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2015 Annual Report
Names of the Zhang Ling, Jiang Yanhong
Certified Public
Accountants as the
signatories
Name
Office address
Certified public accountants engaged Names of the
by the Company（Overseas） Certified Public
Accountants as the
signatories
Name
Office address
The sponsor performing persistant
supervision duties engaged by the Name of the sponsor
Company in the reporting period. as the signatories
Period of supervision
and guide
Name
The Financial advisor performing Office address
persistant supervision duties engaged Name of the financial
by the Company in the reporting advisor as the
period signatories
Period of supervision
and guid
VII.Main accounting data and financial indicators of the Company in the last three years
1.Main accounting data
In RMB
Changed
Main accounting data 2015 2014 over last 2013
year（％)
Operating income 3,420,131,010.98 3,559,013,065.68 -3.90 4,264,031,820.89
Net profit attributable to the 69,792,841.69 59,518,090.82 17.26 93,824,776.19
shareholders of the listed
company
Net profit after deducting of 58,701,752.38 51,331,667.72 14.36 54,216,908.08
non-recurring gain/loss
attributable to the
shareholders of listed
company
Cash flow generated by 501,750,054.81 205,434,440.29 144.24 52,733,441.69
business operation, net
Changed
End of End of End of
over last
2015 2014 2013
year（％)
Net assets attributable to the 1,003,962,628.52 933,812,728.19 7.51 897,432,610.64
shareholders of the listed
company
Gross assets 4,441,133,850.47 4,147,085,911.16 7.09 3,866,185,818.22
Total share capital 235,000,000.00 235,000,000.00 0.00 235,000,000.00
2.Main Financial Index
Changed over last
Main Financial index 2015 2014 2013
year（％)
Basic earning per share(RMB/Share) 0.297 0.253 17.39 0.399
Diluted gains per share(RMB/Share) 0.297 0.253 17.39 0.399
Basic earning per share after deducting 0.250 0.218 14.68 0.231
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2015 Annual Report
of non-recurring
gains/losses(RMB/Share)
Weighted average net asset earning 7.20 6.42 Increased 11.03
ratio（%） by12.15%
Net income on asset, weighted and 6.06 5.54 Increased 6.37
deducted non-recurring gain/loss(%) by9.39%
VIII.The differences between domestic and international accounting standards
1.Simultaneously pursuant to both Chinese accounting standards and international accounting standards
disclosed in the financial reports of differences in net income and net assets.
□ Applicable √Not applicable
2. Differences of net profit and net assets disclosed in financial reports prepared under overseas and
Chinese accounting standards.
□ Applicable √Not applicable
IX.Main Financial Index by Quarters
In RMB
First quarter Second quarter Third quarter Fourth quarter
Operating income 932,102,452.09 1,113,110,903.48 671,516,363.36 703,401,292.05
Net profit attributable to
the shareholders of the 4,841,435.64 22,589,351.13 25,317,926.70 17,044,128.22
listed company
Net profit after deducting
of non-recurring gain/loss
attributable to the 3,200,023.63 15,161,241.18 16,019,460.71 24,321,026.86
shareholders of listed
company
Net Cash flow generated 32,595,667.61
223,628,670.69 168,100,856.86 77,424,859.65
by business operation
Quarterly data and Disclosed periodic reports data discrepancies explained
□ Applicable √Not applicable
X.Items and amount of non-operating gains and losses:
√ Applicable □ Not applicable
In RMB
Notes (If
Items of non-operating gains and losses Amount (2015) Amount (2014) Amount(2013)
any)
Gain/loss form disposal of non-current -462,241.68 -6,128,798.77 31,109,041.33
assets.
Tax rebates, reductions or exemptions
due to approval beyond authority or the
lack of official approval documents
Governmental Subsidy accounted as 20,038,689.31 28,245,641.32 8,607,485.00
current gain/loss, except for those
subsidies at with amount or quantity
fixed by the national government and
closely related to the Company’s
business operation.
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2015 Annual Report
Capital occupation charges on 393,827.10
non-financial enterprises that are
recorded into current gains and losses
Gains due to that the investment costs for
the Company to obtain subsidiaries,
associates and joint ventures are lower
than the enjoyable fair value of the
identifiable net assets of the investees
when making the investments
Gain/loss on non-monetary asset swap
Gain/loss on entrusting others with
investments or asset management
Asset impairment provisions due acts of
God such as natural disasters
Gains/losses of debt restructure
Reorganization expenses, such as
expenditure for allocation of employees
and integration fee
Gains/losses exceeding the fair value
arising from transactions with obviously
unfair prices
Net gain and loss of the subsidiary under
the common control and produced from
enterprise consolidation from the
beginning of the period to the
consolidation date
Gain and loss anising from contingent
matters irrelevant with the Company’s
normal operation business
Gain and loss from change of the fair
value arising from transactional
monetary assets, transactional financial
liabilities as held as well as the
investment income arising from disposal
of the transactional monentary assets,
transactional financial liabilities and
financial assets available for sale
excluding the effective hedging
transaction in connection with the
Company’s normal business
Reverse of the provision for impairment
of acounts receivable undergoing
impairment test individually
Gain/loss from external entrusted loan
Gain and loss arising from change in the
fair value of the investment based real
estate measure afterwards by means of
fair value mondel
Influence upon the current gains and
losses from the once-and –for –all
adjustment over the current gains and
losses according to the taxation and
accounting laws and regulations
Income from custodian charge obtained
from entrusted operation
Operating income and expenses other 2,644,433.78 606,174.49 6,722,899.04
than the aforesaid items
Other gains/losses in compliance with
the definition of non-recurring gain/loss
Influenced amount of minor -7,250,561.72 -11,128,257.29 -200,396.48
shareholders’ equity
Influenced amount of income tax -3,879,230.38 -3,408,336.65 -7,024,987.88
Total 11,091,089.31 8,186,423.10 39,607,868.11
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III. Outline of Company Business
I.Main businesses , business mode and industry situation of the company in the reporting period
1. The main business
The company's main business is: committed to the development and research, production and sales of
low carbon, high efficiency, energy-saving and environmental-protection refrigeration compressor.
2. The business mode
Adhering to the service principle of "Honest management and customer first" and the work spirit of
rapid response and fast action, the company established effective communication mechanism with
customers, established strategic partner relationship with key customers and continuously paid attention
to the extent of customer satisfaction of products quality and technical service. The company’s
marketing department would carry out the product sales according to the customers’ different
requirements and appetites, enacting "One family one strategy" program to provide customers with
personalized products and services. Meanwhile, set up user files and regularly or randomly pay a visit to
the user for better exchange, create the “one-stop babysitting service” mechanism integrated with quality,
technology, service and marketing, shape a perfect overall service network, thus improved the customer
satisfaction and won the customer's favor and trust to gradually achieve the customer engagement.
Ⅱ.Major Changes in Main Assets
During the reporting period, other receivables decreased by 59.16% over the same period last year,
which was mainly due to receiving the last year's export tax rebate;
During the reporting period, the other current assets increased by 130.38% over the same period last year,
which was mainly due to the increase of input VAT;
During the reporting period, the fixed assets increased by 73.46% over the same period last year, which
was mainly due to the new increase of production equipment by Dongbei(Jiangsu) Electromechanical
Co., Ltd and Alashankou Dongbei Greenergy Co., Ltd.;
During the reporting period, the construction-in-process decreased by 84.94% over the same period last
year, which was mainly due to the construction of project of efficient and energy-saving commercial
production line and the first phase construction of project of Jiangsu Suqian Industrial Park had finished
the completion of final accounts and then transferred to the fixed assets;
During the reporting period, the long-term loans increased by 193.51% over the same period last year,
which was mainly due to the increased project loans for purchasing the production equipment by
Alashankou Dongbei Greenergy Co., Ltd;
During the reporting period, the deferred income increased 252.45% compared to the last year, which
was mainly due to receiving the grants for industrial restructuring and upgrading project and the third
phase of special power line construction and financial infrastructure;
During the reporting period, the other comprehensive income increased by 211.33% over the last year,
which was mainly due to the increase in the translation balance of foreign currency in the financial
statements.
Ⅲ.Analysis On core Competitiveness
The company has the "sustained innovation ability of product research and development, the diversified
matching production capacity, cohesion force of people-oriented team, quick response and considerate
service ability and comprehensive marketing developing ability" that constituted the five aspects of the
core competitiveness to support the company to complete the enterprise mission of "Providing the
first-class compressor to the global refrigerator manufacturers " .
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1. R & D capabilities and technology
The company has the domestic leading R & D capabilities and the R & D platform, the compressor
technology center is a national recognized enterprise technology center, the company has set up a post
doctoral workstation and established the research and development center in Europe and The United
States. The company has the compressor product technology to meet high or medium or low back
pressure and high efficiency compressor type under different working fluids requirements, also, the
company has more than 200 items of patents, and the company filed patent application in the foreign
countries. In the ministerial level identification meeting of new products held in November, the company
declared seven series of new products, of which there were four series had been assessed as in the
leading international level, two series were assessed as in the international advanced level, and a series
had been assessed as in the leading domestic level, assessed by the experts that represented the
cutting-edge technological level of the industry, leading the future development direction of the industry.
The third-generation variable-frequency product being developed reached the highest level of similar
products in the world whether in the dimension, performance coefficient, start performance or reliability.
2. The world's advanced compressor production line
The company has the world’s advanced compressor production line which can produce more than 200
kinds of products in 12 major series applied to working fluids such as R600a、R134a、R22、R404a、
R290. Currently, the company has the most types, the most comprehensive specification and the biggest
power-span of compressors in the compressor industry. The company is the major compressor-supplier
for a number of domestic and foreign manufacturers of refrigerator, and the company’s products
exported to more than 30 countries and regions.
3.Frank two-way communication
The company’s leaders understand that the effective communication and practice is an effective way to
accelerate the staff and the related party to recognize and accept the culture of the company, and the
company, through the worker’s congress, special forum and so forth communication platforms,
communicated with its employees. Each month, the company holds regular staff recognition conference
of “People-oriented, glory in hard-working” for the purpose of motivating the team.
4. Highly-efficient management philosophy
The build-up of a flexible organization is conducive to solving problems, improvement, raising the
operating speed. Through the specification of staff responsibility and the improvement of staff skills and
comprehensive capability and by means of adequate human resources to keep the flexibility of the
organization; through the establishment of advanced management system and the enhancement on the
departmental coordination ability and the communication speed to keep transparency and flexibility of
information and instructions, thus to improve the company’s adaptability to the internal and external
environment.
5. Market development
According to the aspects such as customer satisfaction, customer distribution, customer desire, the
change of the market demand of refrigeration compressor and the product production and sales, the
company globally carried out full service in pre-sales, sales and after-sales.
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2015 Annual Report
IV. Management’s Discussion and Analysis
I.Management’s Discussion and Analysis
In 2015, the global economic recovery was slow and the regional hot incidents frequently happened, yet
the growth of the international trade was weak and the domestic growth slowed down, thus the pressure
on the economic downward was continuously increased. According to the online statistics of the
industry, the domestic output of refrigerator compressor increased 2.9% year-on-year and the sales
increased 1.5% year-on-year, however, compared to the previous years, the rate of increase sharply
declined. In the refrigerator compressor industry, there was serious overcapacity and there was very
fierce competition. Under such complex economic environment, the company focused on its capability,
actively adapted to the new normal, stimulated its vitality and strived to make a new business
performance. Centered on the annual business goal, the company mainly focused on the following works
in the full year:
1. Actively developing the new market and speeding up the internationalization of the company
In 2015, the company overcame the difficult situation that the overseas market demand was not strong
but the domestic demand was weak, adhered to grasp the international and domestic markets, kept a
close watch on the product structure adjustment caused by end-users, promoted the high-specification,
high-efficient and variable-frequency products to realize the market-share growth; at the same time,
according to the different needs of users, the company adopted different sales policies, considerate
services and the precise marketing, thus the company successively won the outstanding supplier award
of Nanjing Skyworth, the outstanding supplier award of Aucma, Strategic Cooperation Award of Midea,
and the company had become the best supplier to Whirlpool and the strategic supplier to Galanz. Under
such difficult market environment, the company’s sales of compressor realized the growth. Meanwhile,
the company actively explored the international market, in 2015, the company's annual export volume of
foreign trade increased 20.6% year-on-year.
2. Adhering to the Technology First and improving the core competitiveness
In order to consolidate the foundation of the company’s R&D and meet the market demand, the
company set up four function-research institutes, by division of responsibility and synergy, which sped
up the R&D of new products. Among the developments, the development of ultimate motor made the
copper efficiency up to 88% and aluminum efficiency up to 87.2%. Also, there were 73 projects of noise
improvement, of which 64 projects had been recognized by the users. In the ministerial level
identification meeting of new products held in November, the company declared seven series of new
products, of which there were four series had been assessed as in the leading international level, two
series were assessed as in the international advanced level, and a series had been assessed as in the
leading domestic level, assessed by the experts that represented the cutting-edge technological level of
the industry, leading the future development direction of the industry. The third-generation
variable-frequency product being developed reached the highest level of similar products in the world
whether in the dimension, performance coefficient, start performance or reliability.
Besides, the company had made new breakthroughs in the filing of patent application. The company
applied for 75 patents in the year, of which 56 patents were granted, increased 6 patents compared to the
previous year. Among those patents, the “Separating hear-insulation exhausting silencer” refrigeration
compressor obtained the patent in the USA, which marked the first overseas patent that the company had
obtained.
3. Adhering to the quality as the essence and strengthening the process control
Firstly, the company paid great attention to the construction of the system. Combined with the actual
operation, the company revised and improved the management files, then promoted and implemented
the files. The company enhanced the requirements of rigid quality management, through “Sunrise
Action” and insisting on “Three zero tolerances”, the company carried out monthly training for group
leaders and team leaders, enhancing the quality awareness of all the employees. The second is to
strengthen the process control. The company strengthened the company’s quality culture, paid close
attention to the source control and the process of mutation, made the average user offline rate of the
three plants of Huangshi, Wuhu and Suqian dropped to 96PPM; widely carried out the mass QC team
activities, thus improved the product quality. The QC team of the QC department of Oubao Company
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2015 Annual Report
had been assessed as the national excellent quality management team, yet the technical team of the
company’s assembly workshop had been assessed as the trust-worthy team of national quality
management team. The third was to strengthen the management of the supplier. In 2015, the company
appraised the supplies to the company’s three production bases by means of scores in evaluation in
6-dimension, implemented the grade management, sorted out 23 unqualified suppliers, thus promoted
the continuous quality improvement by the suppliers.
4. Adhering to the continuous efficiency improvement and standardizing the performance evaluation
At the beginning of the year, the company began to implement the performance evaluation based on
the KPI, according to the Management Provisions on Guideline of Staff Performance Evaluation, the
company standardized the operation process of performance appraisal, adjusted the ratio of performance
pay in the employees' salary, thus mobilized the enthusiasm of the staff. In order to improve the
efficiency, the company also focused on optimizing the process, carried out the technological
transformation and downsizing personnel for improving the efficiency. By virtue of changing the
production organization mode, the company set up the logistics planning department and the
manufacturing department, transformed the function and responsibility division, reduced the material
backlog, fully utilized the production capability and made the per capita production efficiency increased
4.6% year-on year.
II. Production and operation
In the report period, the Company earned operating income of RMB 3.420 billion, which decreased by
3.90% year on year. Net profit attributable to the shareholders of the listed company was RMB 69.79
million. which Increased by 17.25% year on year. The compressor output was 23.4421 million. which
Increased by 6.4% year on year. The compressor sales was 24.04 million , which Increased by 10.1%
year on year.
1.Analysis on principal Business
Sheet of change analysis of relevant items of profit statement and cash flow statement
In RMB
Amount in this Amount in last
Subject Proportion（%）
period period
Business income 3,420,131,010.98 3,559,013,065.68 -3.90
Business cost 2,909,310,999.92 3,073,946,585.99 -5.36
Sales expenses 103,477,015.27 88,372,759.38 17.09
Administrative expenses 265,472,065.47 262,258,841.68 1.23
Financial expenses 51,615,584.69 49,280,328.08 4.74
Cash flow generated by operation 501,750,054.81 205,434,440.29 144.24
activities, net
Net cash flow generated by investment -465,919,758.68 -246,998,359.47 -88.63
activities
Net cash flow generated by financing 49,970,231.52 67,450,305.42 -25.92
activities
R& D expenses 136,696,260.57 135,620,731.54 0.79
a. Analysis of revenue and cost
The Operating income decreased 3.90% over the previous year, Mainly for the changes in product sales
structure.
The current business costs decreased year on year, Mainly for the decline of the current material price,
gaining a good result in cost control
The current Financial expenses increased year on year, Mainly for the increase in the current interests.
The current Net Cash flow generated by operation activities increased year on year, Mainly for the
increase in the cash of goods sales and rendering of service as well as the tax refund received
The current net cash flow generated by investment activities decreased year on year, Mainly for the
increase in Alashankou Dongbei Greenergy Co., Ltd..’s purchase of fixed assets
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2015 Annual Report
The current net cash flow generated by financing activities decreased year on year，Mainly for the
increase in the project’s loan
(1)The Status of key business in terms of industry of business , production and area
In RMB
The Status of key business in terms of industry of business
Increase/de
Increase/de Increase/
crease of
crease of decrease
On Income from key Gross profit key
Cost of key business key of gross
industry business （％） business
business profit
turnover
cost（％） （%）
（％）
Manufact 3,350,641,602.84 2,849,092,133.74 14.97 -3.37 -5.16 1.6
uring
The Status of key business in terms of production of business
Increase/de
Increase/de Increase/
crease of
On crease of decrease
Income from key Gross profit key
productio Cost of key business key of gross
business （％） business
business profit
n
turnover
cost（％） （%）
（％）
Compress 2,889,191,020.67 2,483,605,062.55 14.97 -4.73 -6.38 Increased
ors by 2.45%
Auto 435,550,659.10 353,376,818.32 18.87 4.39 4.44 Decrease
casting d by
and 0.03%
Compress
ors
casting
Photovolt 25,899,923.07 12,110,252.87 53.24 100 100 Increased
aic power by 100%
generatio
n
The status of main operation in terms of Area
Increase/d Increa
Increase/d
ecrease of se/decr
Gross ecrease of
Income from key key ease of
On Area Cost of key business profit key
business business gross
（％） turnover
business
profit
cost（％）
（％） （%）
Domestic 2,654,237,976.31 2,220,234,194.58 16.35 -4.62 -7.77 Increa
sales sed by
2.85%
Overseas 696,403,626.53 628,857,939.16 9.7 1.71 5.37 Decrea
sales sed by
3.14%
Notes
Explanation of the main business’ branched industry: The current gross profit rate increases year on year,
which is mainly for the decline of the current material price, gaining a good result in cost control.
Explanation of the main business’ branched product: Alashankou Dongbei Greenergy Co., Ltd. put into
production at the current period, where changes occurred in the sales structure.
Explanation of the main business’ branched region:The current gross profit rate increases in home sales,
which is mainly for the decline of the current material cost, gaining a good result in cost control. The
current gross profit decreases in abroad sales, which is mainly for the changes in the structure where
abroad customer purchases product.
(2)Analytical Statement of Production and Sales Volume
Production Production Production
Gradient Gradient Gradient
Main Product Production Marketing Inventory
Year on Year Year on Year Year on Year
（%） （%） （%）
Compressors 23.4421million 24.0474million 1.1144million 6.40 10.1 -35.62
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2015 Annual Report
sets sets sets
Auto casting 710.5968 710.5968million 0 3.47 6.00 0
and million pieces pieces
Compressors
casting
Photovoltaic 32.13millionkwh 32.13millionkwh 0 100 100 0
power
generation
(3)Cost analysis sheet
In RMB
The status of key business in terms of industry of business
On industry Items Amount in this Proportion(%) Amount in last Increase/decrease Change Notes
period period of key business of key
cost(%) business
profit
over the
same
period of
last
year(%)
Manufacturing Cost of 2,849,092,133. 85.22 3,004,009,420.05 97.72 -5.16
key 74
business
The status of key business in terms of production of business
On production Items Amount in this period Proportion(%) Amount in Increase/decrease Change
last period of key business of key
cost(%) business
profit
over the Notes
same
period of
last
year(%)
Compressors Material 2,483,605,062.55 87.17 2,652,923,49 88.31 -5.64
s, labor 3.16
costs,
etc.
Material 353,376,818.32 12.40 338,365,366. 11.26 4.44
Auto casting
s, labor 81
and
costs,
Compressors
etc.
casting
Photovoltaic Material 12,110,252.87 0.43 100
power s, labor
generation costs,
etc.
Notes
The reason of changes in the cost of photovoltaic generation is that Alashankou Dongbei Greenergy Co.,
Ltd. put into production in 2015.
b.Cost
The selling expense increases by 17.09% year on year, which is mainly for the increase in the sales
volume, leading to the increase in relevant expense;
The administrative expenses increases by 1.23% year on year, Mainly for the increase in the
management’s wage and the technological development expense;
The Financial expenses increases by 4.74% year on year, Mainly for the increase in the interest expense
of the project’s loan.
c. R& D Expenses
14 / 121
2015 Annual Report
In RMB
Amount of Capitalization Research and 136,696,260.57
Development Investment
Amount of Capitalization Research and
Development Investment
Total of Capitalization Research and 136,696,260.57
Development Investment
Proportion of total R&D expenditure to operating 4.00
income (%)
Number of Research and Development persons 432
(persons)
Proportion of total R&D expenditure to persons 10.01
(%)
Proportion of Capitalization Research and 0.00
Development Investment
d.Cash Flow
In RMB
Items 2015 2014 Increase/Decrease(%)
Cash flow generated by 609,224,976.07 205,434,440.29 196.55
operation activities, net
Net cash flow generated by -573,394,679.94 -246,998,359.47 132.15
investment activities
Net cash flow generated by 49,970,231.52 67,450,305.42 -25.92
financing activities
The cash flow statement in the 2015-annual consolidated financial statements showed: the explanation
of change of net cash flow from operating activities: the net cash flow from operating activities
increased over the same period last year, which was mainly due to the increase of cash from sales of
goods and providing the service and the increase in the tax return being received.
The explanation of change of net cash flow from investing activities: the net cash flow from investing
activities increased over the same period last year, which was mainly due to the increase of the purchase
of fixed assets by Alashankou Dongbei Greenergy Co., Ltd.
The explanation for the change of net cash flow from financing activities: the net cash flow from
financing activities decreased over the same period last year, which was mainly due to the increase of
the amount of project loan.
2.Explanation of the Profit’s Significant Changes generated by the Non-core Business
□ Applicable √ Not applicable
3.Analysis on Assets and liabilities
Assets and liabilities statement
In RMB
Changed
Proportion Year-end balance Proportion Notes
Name Year-end balance proportion
（%） in last period （%）
（%）
Other account 9,304,868.79 0.21 22,782,353.03 0.55 -59.16 Receive
receivable the export
rebate of
last year
Other current 86,403,299.73 1.95 3,754,806.36 0.90 130.38 For the
assets increase
in the
input tax
of VAT
15 / 121
2015 Annual Report
Long-term 7,028,918.54 0.16 5,349,770.71 0.13 31.39 For the
equity increase
Investment in that
Huangshi
Aibo Real
Estate
Co., Ltd.
And
Hubei
Jinling
Precision
Agricultur
e Co., Ltd.
calculate
to confirm
the
investmen
t income
according
to Equity
Method
Fixed assets 1,496,280,148.15 33.69 862,593,882.87 20.80 73.46 For the
new
productio
n
equipment
of
Dongbei
Mechanic
al &
Electrical
(Jiangsu)
Co., Ltd.
and
Alashanko
u Dongbei
Greenergy
Co., Ltd.
Construction in 33,236,407.41 0.75 220,621,843.79 5.32 -84.94 For that
progress high-effici
ent energy
agent
constructs
the project
with
productio
n line, and
the
completin
g
accountin
g of
Jiangsu
Suqian
Industrial
Area
Period I
has been
completed
, which
was
transferre
d to the
fixed
asset.
Amortisation of 10,789,780.00 0.24 7,726,742.16 0.19 39.64 For the
16 / 121
2015 Annual Report
long-term industrial
expenses area’s
new
purchase
of seeding
and the
redecorati
on of
green area
and partial
office
building
Long-term 356,440,000.00 8.03 121,440,000.00 2.93 193.51 For
Loans Alashanko
u Dongbei
Greenergy
Co., Ltd.’s
purchase
of
productio
n and
operation
equipment
and
augment
in the
required
capital of
operation
Deferred 108,098,357.37 2.43 30,670,421.67 0.74 252.45 Receive
income the
subsidy of
the
industry
transform
ation and
upgrading
project
and the
special
funds of
Special
Power
Supply
Line
Constructi
on Period
III as well
as other
subsidy of
financial
infrastruct
ure
Other 526,019.67 0.01 168,961.03 0.004% 211.33 For the
Comparehensiv balance
e Income arising
from the
translation
of foreign
currency
financial
statements
.
4.The analysis of business information of the industry
17 / 121
2015 Annual Report
The output of refrigerator compressor of year-2015 was 123.605 million units, an increase of 2.9%
year-on-year, while the sales was 124.435 million units, an increase of 1.5% year-on-year. In 2015, the
refrigerator market continued to slump, the competition of the compressor industry had become more
intense and the market demand for overall unit was weak. For 2016, the channel change, the adjustment
of product structure, the escalation of energy efficiency standards and so forth will pose a challenge to
the refrigerator industry, it may also bring new development opportunities, at the same time, the export
market continued to grow, which will alleviate the pressure for the compressor industry.
5.The investment of the Company
1.Investments in external parties
(1) Significant equity investment
(2) Significant non-equity investment
(3)Financial Asset and Liabilities Measured by Fair Value
6.The sale of Significant assets and equity
7.Analysis on principal controlling companyand Mutual shareholding companies
Registered Total
Shareholdi Net assets Net Profit
Business Capital assets
Name ng Ratio （RMB’0000 （RMB’0000
Scope （RMB’0000 (RMB’000
（%） ） ）
） 0)
Production 5000 75 151,099.79 54,243.33 6,480.98
and sales of
refrigeration
compressors
, compressor
motor;
Related to
small and
Wuhu Abaur Mechanica medium
l& sized
Electrical Co.,Ltd castings,
machinery
manufacturi
ng and
related
technology
developmen
t,
consulting.
Casting of 3,281.40 51.28 43,363.2 10,413.15 893.08
small and 6
medium-siz
ed cast
Huangshi Dongbei
products,
Foundry Co., Ltd.
house
renting and
parking
service.
18 / 121
2015 Annual Report
Refrigeratio 800 100 799.91 787.23 -12.21
n
compressors
,
refrigeration
equipment,
motors,
solar energy
products,
machinery
and
electrical
technology
products,
electronic
components,
high-tech
products,
software
products,
Dongbei refrigeration
(Wuhan )Technology products and
Innovation Co., Ltd. parts, auto
parts, new
energy
products and
components,
optoelectron
ic products
and parts,
solar power
generation
systems and
solar
off-grid
power
system
technology
developmen
t, research,
consulting
and
production.
Production 20000 100 35,527.07 13,012.59 -758.59
and sales of
refrigeration
compressors
, compressor
Dongbei Mechanical &
motor;
Electrical (Jiangsu) Co.,
high-tech
Ltd.
product
developmen
t, production
and
consulting.
Sales of USD 1 100 3,133.79 470.20 -207.92
Refrigeratio million
n
Compressor,
Refrigeratio
n Equipment
and Parts ,
Photoelectri
Huangshi Dongbei c products
International Trade Co., and solar
Ltd. water
19 / 121
2015 Annual Report
heater ,etc.
Solar power 16500 80 50,923.27 16,727.57 247.38
generation
systems and
off-grid
solar power
system
Alashankou Dongbei
design,
Clean Energy Co., Ltd.
developmen
t,
production,
sales,
installation
and service.
8.The structure of the subject of corporate control
Not applicable
III.Competition and development trends in the industry
1.Competition pattern of pesticide industry
In terms of the competition, the global compressor industry demand is still insufficient and the
industry situation is extremely severe. Due to the impact of overcapacity, the competition is becoming
increasingly fierce. The refrigerator industry was affected by the macroeconomic, so the domestic sales
in 2015 declined significantly, although the exports maintained a growth momentum, it failed to reverse
the overall decline in the situation. The market situation of 2016 is not optimistic, the domestic market
may decline, even may have a negative growth, yet the industry's globalized integration will continue. In
the industrial development trend, high efficiency, frequency-conversion and being-intelligent will be the
mainstream of the development of the compressor, also, the new refrigeration technology and the
technological innovation will have a profound impact on the long-term development of the industry.
With the release of the new national energy efficiency standards, that higher standards and requirements
are proposed for household electrical appliances in energy saving and environmental protection. With
the promotion and popularization of smart, networked and variable-frequency refrigerators, the market
of variable-frequency compressor market is expected to have a rapid growth, thus bringing new market
opportunities.
Facing the extremely severe situation of the industry as above-said, the company will adhere to
increasing the intensity of technological innovation, focus on the development of variable-frequency and
high efficiency compressor, continue to consolidate the domestic market and lay stress on expanding
overseas markets, continue to improve the competition ability with differentiated products by means of
the adjustment of product structure and seize the opportunity for industrial integration to make a bigger
and stronger compressor industry.
2.Development Strategy
Center on benefits, be oriented by the market, satisfy clients’ demand as our endless pursuit, give
full play to our core competitiveness in R&D, concentrate efforts on competitive programs, improve
market share. Stand firmly on the commanding high point of market, strengthen responsibility and
management, get new development in innovation, improve product quality steadily, further reduce cost,
and enhance the competitiveness of products. Our goal in 2016 is RMB 3.4 billion revenue and sales of
24million compressors.
3.Operation Plan
(1)Marketing Aspect
1) Precision marketing and the overall linkage; changing domestic sales structure and increasing the
exports.
2) Incentive mechanism on innovation: Based on target-oriented, inspire the staff’s initiative spirits,
raise the sales of commercial compressor and improve the average sales price, so as to ensure fully
utilizing the company’s production capability and scale effect.
2. R&D on the product
20 / 121
2015 Annual Report
1) Precise R&D, improve the target rate of products. Deeply acquaint in the user site, accurately
obtained the presented and potential real needs, so as to carry out targeted, representative and
foreseeable R&D.
2) Further develop the variable-frequency to enhance the company's development potential. In 2016, the
research will be focused on R&D of the third generation variable-frequency products and realize
matching the user and providing batch products of it, while the development of mini-type
variable-frequency product will be extended from the high-end to the medium-end products, thus to
occupy more market share on variable-frequency.
3. Quality Control
Rigid quality management is the guarantee for a stronger company. The first is to pay attention to
the source control and the process variation, continuously adhering to the awareness and requirements
of "Three terms being not allowed", "Three items in zero tolerance" and "Four things being never
neglected”. The second is to do a good job in the control of “gap, volume gap, air gap”. The third is to
do a good job in the upgrade work of the measurement system and consolidate the basis of quality
control. The fourth is to do a good job in quality control, evaluation and ability improvement of the
supply chain.
4. Reinforcing the management and implementing strict assessment
At first, each factory and each system must take the responsibility and have ideas and have the
sense of duty. The second is to reinforce the management, having "strict management" thought which
shall take into consideration of replacement on typical person without idea change. The third is to
improve efficiency and raise the proceeds: plan and organize the implementation work to improve
production efficiency and the work efficiency, reduce production costs, improve gross margin, control
costs and improve proceeds. The fourth is to improve the assessment and incentive mechanism and
determine the remuneration by the performance. During the reporting period, other receivables
decreased by 59.16% over the same period last year, which was mainly due to receiving the last year's
export tax rebate;
4. Potential Risks
5.Other
IV. The explanation and the information about the disclosure not conformed to the Code as the
provision of the Code does not applied to the company or because of special reasons
□ Applicable √ Not applicable
21 / 121
2015 Annual Report
V. Important Events
ⅠSpecification of profit distribution of common shares and capitalizing of common reserves
1.Formulation, implementation and adjustment of profit distribution policy of common shares
especially cash dividend policy during the reporting period
According to the Notice of Further Implementing the Matters Concerning Distribution of Cash
Dividends by Listed Companies (Zheng Jia Fa (2012) No. 37 Document) issued by CSRC on May 4,
2012 and the requirements of Hubei Securities Regulatory Bureau and Shanghai Stock Exchange, the
sixth meeting of the fifth board of directors of the Company held examined and adopted the proposal for
implementing the dividend distribution document of CSRC and revising the clauses of the Articles of
Association of the Company in respect of profit distribution. The adoption of this proposal perfected the
Company's profit distribution policy, improved the transparency of profit distribution, protected public
investors' lawful rights and interests and enhanced the level of the Company's overall standardized
operation.
The Company’s 2015 Annual Profit Distribution Plan was deliberated in the 12th board meeting of
the sixth session board of directors on April 21, 2016, audited by Daxin Certified Public Accountants
LLP, the company’s 2015 annual net profits attributable to shareholders of the parent company were
RMB 69,792,841.69 , plus the undistributed profits of RMB 464,995,647.55 in the beginning of the year,
and drew surplus reserve of RMB 2,349,281.23, thus the undistributed profits at the end of the period of
2015 were RMB 532,439,208.01.
Considering the company’s development and the fund needs for the project construction, the company’s
2015 annual profits distribution plan was:The bonus shares allocation and the capitalization from capital
public reserve will not be conducted for the company this year.
The plan still needs to be submitted to the general shareholder meeting for deliberation.
2.The Company's plan for preplan for profit distribution or capitalization of capital surplus for
the recent three years (including the report period)
In RMB
Year Number of Net profit
Ratio of net profit
shares for attributable to
Number of Amount of attributable to
every 10 Amount of shareholders of
bonus shares dividends for shareholders of
shares after cash bonus listed company in
for every 10 every 10 listed company in
capital (Included tax) consolidated
shares shares consolidated
surplus statement of bonus
statement
capitalization year
2015 0 0 0 0 69,792,841.69
2014 0 0 0 0 59,518,090.82
2013 0 1 0 23,500,000 93,824,776.19
3.In the reporting period, both the Company’s profit and the parent company’s retained earnings
were positive however not cash dividend distribution proposal has been put forward.
√ Applicable □ Not applicable
In the reporting period, it was profitable and the profits
distributed among common shareholders were positive, but the Purpose of and plans to use undistributed profits.
reason for the profit-sharing scheme by cash was not proposed.
audited by Daxin Certified Public Accountants LLP, the In the face of increasingly fierce competition in the
company’s 2015 annual net profits attributable to shareholders compressor industry, in order to enhance the company's
core competitiveness, increase the R & D investment on
of the parent company were RMB 69,792,841.69 , plus the
small and variable-frequency compressor, all need the
undistributed profits of RMB 464,995,647.55 in the beginning company to continuously invest. At the same time, in
of the year, and drew surplus reserve of RMB 2,349,281.23, the company's debt structure, the bank loans accounted
thus the undistributed profits at the end of the period of 2015 for the large proportion, thus it needs the self-own
22 / 121
2015 Annual Report
were RMB 532,439,208.01. funds to reduce financial costs.
Considering the company’s development and the fund needs
for the project construction, the company’s 2015 annual profits
distribution plan was:The bonus shares allocation and the
capitalization from capital public reserve will not be conducted
for the company this year.
II. Performance of commitments
□ Applicable √ Not applicabler
III.Particulars of fund occupation and progress of debt repayment in the report period
□Applicable√Not applicable
IV.Explanation by the Board of Directors about the “ non-standard audit report ”.
(1)Explanation by the Board of Directors and supervisory committee about the “ non-standard audit
report”.
□ Applicable √ Not applicable
（2）Explain change of the accounting policies, accounting estimates and measurement methods
□ Applicable √ Not applicable
(3)Explain retrospective restatement due to correction of significant accounting errors in the reporting
period.
□ Applicable √ Not applicable
V. Engagement or dismissal of certified public accountants' firm
In RMB
Now appointing
Domestic certified public accountants engaged by the Hubei Daxin Certified Public Accountants Co.,
Company Ltd.(Special General Partnership)
Remuneration for the domestic certified public accountants 45
Recompense by the Company
Time for the domestic cetified public accountants serveas 15
by the company
Outside accounting firm name
Outside accounting firm rewards
Outside accounting firm audit years
Name Remuneration
CPAs firm for the internal control Hubei Daxin Certified Public 15
Accountants Co., Ltd.(Special General
Partnership)
Financial Adviser
Sponsor
Dismissal of accounting firms note
□ Applicable √ Not applicable
Circumstances change during the accounting firm's audit explanation
23 / 121
2015 Annual Report
None
VI.Risk of suspending or terminating stock listing
1.Reasons for suspending or terminating listing and measures taken to remove such circumstances
None
VII.Bankruptcy reorganization
□Applicable √ Not applicable
VIII.Significant lawsuits and arbitrations of the Company
□Applicable √ Not applicable
IX. Penalty to the Company and its directors, supervisors and senior executives, controlling shareholder,
actual controller or buyer and particulars about rectification
□Applicable √ Not applicable
X.Integrity of the company and its controlling shareholders and actual controllers
During the reporting period, the company has no stock incentive plan, employee stockownership plan or
other employee incentives that have not been implemented.
XI.Implementation of the company’s stock incentive plan, employee stock ownership plan or other
employee incentives
□Applicable √ Not applicable
XII. Significant related-party transactions
√Applicable □ Not Applicable
(I) Related transactions in connection with daily operation
1.Matters that have been disclosed in provisional announcements and there has been no change or develo
p of subsequent implementation.
Summary of matters Inquiry indexing
2.Matters that have been disclosed in provisional announcements and there has been change or develop o
f subsequent implementation
3.Asset acquisition and disposal related transactions
□Applicable √ Not applicable
(II) The acquisition of assets or equity, the sale of the occurrence of the associated transactions
1.Matters that have been disclosed in provisional announcements and there has been no change or
develop of subsequent implementation.
Summary of matters Inquiry indexing
Proposal on purchasing related assets of the related party Refer to the website of Shanghai Stock Exchange：
Huangshi Aibo Technology Development Co., Ltd. by 1. Announcement of Resolutions of the 4th meeting of the
agreement.
24 / 121
2015 Annual Report
sixth board of directors of Huangshi Dongbei Electrical
Appliance Co., Ltd. No.:2015-001.
2.Announcement of Huangshi Dongbei Electrical
Appliance Co., Ltd. for the purchase of the asset related
party.No：2015-008
About Huangshi Dongbei Electrical Appliance Refer to the website of Shanghai Stock Exchange：
Co.,Ltd purchasing the assets of the related party 1. Announcement of Resolutions of the 10th meeting of the
sixth board of directors of Huangshi Dongbei Electrical
Appliance Co., Ltd. No.:2015-019.
2.Announcement of Huangshi Dongbei Electrical
Appliance Co., Ltd. for the purchase of the asset related
party.No：2015-020
2.Matters that has been in temporary announcement disclosed, but there is progress in the
implementation of the follow-up or change
3.Information not disclosed in temporary announcement
□Applicable √ Not applicable
4. If related to a commitment of business performance, it shall disclose the business performance
realized in the reporting period
(III).Significant related party transactions of common foreign investment
(1).Information not disclosed in temporary announcement
□ Applicable √ Not Applicable
(IV).Related Liabilities
1.Information not disclosed in temporary announcement
□ Applicable √ Not Applicable
(V)Other
XIII. Major contract and implantation
1.Trusteeship, contract and leasing
□ Applicable √ Not applicabler
2. Particulars of guarantee
√Applicable □ Not applicabler
In RMB
Particulars about the external guarantee of the Company(Barring the guarantee for the controlling subsidiaries)
Name Occurr Whether
whether Whether
of Amount ence Guarant Guarant Type guarante Guarant
Whether anti-guar provided Rela
guarant Relatio warrant of date ee the ee the of e exceed ee
terminat antee to tions
ee n ee guarant (date of starting expiratio guaran the demurra
ed exist or related hip
target ee agreem date n date tee delinque ge
not parties
ent ncy date
25 / 121
2015 Annual Report
signing
)
Huangs Huangs 2,995.0 July Novemb Guaran No No No Yes
hi hi 0 16,2015 er tee
Dongbe Dongbe 3,2016 with
i i joint
The
Electric Electro respon
Compa
al mechan sibility
ny
Applian ical
ce Co., Group
Ltd. Co.,
Ltd.
Huangs Huangs 7,317.9 July June Guaran No No No Yes
hi hi 4 24,2015 29,2016 tee
Dongbe Dongbe with
i The i joint
Electric Compa Refriger respon
al ny ating sibility
Applian Co.,
ce Co., Ltd.
Ltd.
Huangs Huangs 3,000.0 Decemb Decemb Guaran No No No Yes
hi hi Aibo 0 er er tee
Dongbe Technol 28,2015 17,2016 with
i The ogy joint
Electric Compa Develo respon
al ny pment sibility
Applian Co.,
ce Co., Ltd.
Ltd.
Huangs Huangs 1,210.0 Novemb Decemb Guaran No No No Yes
hi hi 0 er er tee
Dongbe Dongbe 11,2015 17,2016 with
i i joint
Electric Electro respon
The
al mechan sibility
Compa
Applian ical
ny
ce Co., Group.
Ltd. Solar
energy
Co.,
Ltd.
Total amount of guarantee in the report (Barring the 14,522.94
guarantee for the controlling subsidiaries)
Total balance of guarantee in the report(A)(Barring 14,522.94
the guarantee for the controlling subsidiaries)
Guarantees provided by the Company to its controlled subsidiaries
Total amount of guarantees provided to subsidiaries in 97,026
the report period
Total balance of guarantees provided to subsidiaries at 93,780
the end of the report period(B)
Total amount of guarantees provided by the company (including the guarantees provided to controlled subsidiaries)
108,302.94
Total amount of guarantee（A+B）
Proportion of the total guarantee in the net assets of 108%
the Company(%)
Including：
Guarantees provided to the shareholders, substantial 14,522.94
controllers and the related parties（C）
Guarantees provided to objects with over70%in 21,613.57
liability/capital rate, directly or indirectly（D）
Amount of guarantee over 50％ of the net asset（E） 58,104.81
Total of the above （C+D+E） 79,718.38
26 / 121
2015 Annual Report
Explanation of unexpired may commitment joint
liability guarantee
Guarantee explanation
3.Situation of Entrusting Others for Managing Spot Asset
(1)Situation of Entrusted Finance
□ Applicable √ Not applicable
（2）Situation of Entrusted Loans
□ Applicable √ Not applicable
(3)Other investment and financial investment in derivatives
□ Applicable √ Not applicable
4. Other significant contract
XIV.Explanation about other significant matters
□ Applicable √ Not applicable
XV. The information of actively fulfilling the social responsibility
1.Information about the work on social responsibility
(1) The corporate governance: the company conformed to the requirements of The Company Law, The
Securities Law, The Code of Corporate Governance for Listed Companies, Shanghai Stock Exchange
Stock Listing Rules and other laws and regulations, combined with the actual situation of the company,
constantly improved the structure of corporate governance, established a sound internal control system
and improved the level of standard operations of the company.
(2) Protecting the rights and interests of shareholders: in 2015, strictly in accordance with the
requirements of relevant laws and regulations, the company established and improved the corporate
governance structural mechanism of “Three-meeting and One Management” constituted by the general
shareholder meeting, board of directors, board of supervisors and the management, formulated and
improved the company’s internal control system to ensure all the management of the company complied
with the rules and laws, thus to prevent the operating risks. Fully utilized the governance mechanism of
balance of power based on that the general shareholder meeting is the highest authority, the board of
directors is the decision-making authority, the management is the execution authority and the board of
supervisors is the supervision authority, ensured the effective implementation of decision-making rights
of the board of directors and the supervision rights of the board of supervisors and the operating rights of
the management, realized efficient and scientific corporate governance for the company and soundly
protected the interests of investors.
(3)Protecting the interests of staff
(a) Staff: Since its establishment, Dongbei Company always adhered to the concept of "jointly
doing Dongbei’s business, jointly feeling the happiness of working, jointly sharing the fruits of
development, to together live a peaceful life, step on a rich road and build our happy homes" , built the
harmonious labor relations, fully gave play to the staff’s enthusiasm in participating the company’s
management, protected the legitimate rights and interests of the staff, ensured the staff’s safety and
health and continuously improved for their better life.
(b) The staff’s remuneration and the remuneration system: to attract, motivate and retain the talents and
to realize the sustainable development for the company and the staff, the company had established the
27 / 121
2015 Annual Report
performance-based remuneration system of “Fairness within the company, competiveness with the
external.” The remuneration-incentive: the staff’s annual remuneration will be increased by no less than
8% year on year, the year-end bonus will be paid and the performance-related pay will be fully paid each
month in time according to the performance of the post. The remuneration and benefits: providing the
statutory benefits such as the insurances on five items and the housing provident fund and providing
other benefits.
(c) Caring for staff: livelihood projects: built the people’s livelihood projects: comfortable housing
project, project for the care of the aged, ecological and environmental protection engineering; built staff
services: mutual caring staff fund, relief fund for staff’s special difficulty; built pluralized benefits:
providing fresh milk and food subsidies, free medical checkup and specific female workers’ medical
checkup; set up the caring system: Day of listening the staff’s heart, staff difficulty relief, aiding staff’s
children’s for school education, annual leave for staff, excellent staff having salary on self-travel,
engineer / Technician subsidies, staff marriage congratulations, reward on staff’s self-learning etc.
(II)If the listed company or its subsidiaries belong to the heavy polluting industry specified by the
National Environmental Protection Department, please specify the information of environmental
protection.
The company and its subsidiaries do not belong to the heavy polluting industry specified by the National
Environmental Protection Department.
XVI.Information about the corporate bonds
□ Applicable √ Not applicable
28 / 121
2015 Annual Report
VI. Change of share capital and shareholding of Principal Shareholders
Ⅰ.Changes in share capital
1. Changes in share capital
（1）Change in ordinary shares
The Company has not changed ordinary shares of the Report period .
(2)Description of changes in ordinary shares
None
(3)Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share
attributable to common shareholders of Company in latest year and period(If any)
None
(4)Other information necessary to disclose for the company or need to disclosed under requirement from
security regulators
None
2. Change of shares with limited sales condition
□Applicable √Not applicable
Ⅱ.Issuing and listing
Ⅲ.Shareholders and actual controlling shareholder
1.Total shareholders
Total number of common 19,239
shareholders at the end of the
reporting period
Total shareholders at the end of the month from the date of disclosing the 19,281
annual report
The total number of preferred shareholders voting rights restored at period-end
Total preferred shareholders at the end of the month from the date of
disclosing the annual report
2.Number of shareholders and shareholding
In RMB
Particulars about the shareholding of the top ten shareholders
Amou Pledged or frozen
nt of
Number of
Increase/dec Proportion restric Sharehold
Shareholder name shares held at Quanti
rease (%) ted Status er nature
period -end ty
shares
held
Huangshi Dongbei 0 117,600,000 50.04% 117,6 State-own
Electromechanical Group Co., 00,00 None ed legal
Ltd. 0 person
GUOTAI JUNAN 667,302 1,153,801 0.49 Foreign
Unkno
SECURITIES(HONGKONG) Legal
wn
LIMITED person
Sun Menglin 1,957,987 875,227 0.37 Domestic
Unkno
natural
wn
person
Zhou Xiaohai 834,900 834,900 0.36 Domestic
Unkno
natural
wn
person
29 / 121
2015 Annual Report
Hu Jiaying 907,391 828,846 0.35 Domestic
Unkno
natural
wn
person
Changzhou Zhongke Electric 0 800,000 0.34 800,0 Domestic
manufacture Co., Ltd. 00 Non-State
None -owned
legal
person
ISHARES CORE MSCI 405,200 405,200 0.17 Foreign
Unkno
EMERGING MARKETS ETF Legal
wn
person
Jiang Zhongfa 0 400,000 0.17 Domestic
Unkno
natural
wn
person
Xu Xuan 400,000 400,000 0.17 Domestic
Unkno
natural
wn
person
Changshu Tianyin 0 400,000 0.17 400,0 Domestic
Electromechanical Co., Ltd. 00 Non-State
None -owned
legal
person
Shareholding of top 10 shareholders of unrestricted shares
Quantity of unrestricted shares held at Share type
Name of the shareholder
the end of the reporting period Share type Quantity
GUOTAI JUNAN 1,153,801 Foreign shares
SECURITIES(HONGKONG) LIMITED placed in
domestic
exchange
Sun Menglin 875,227 Foreign shares
placed in
domestic
exchange
Zhou Xiaohai 834,900 Foreign shares
placed in
domestic
exchange
Hu Jiaying 828,846 Foreign shares
placed in
domestic
exchange
ISHARES CORE MSCI EMERGING 405,200 Foreign shares
MARKETS ETF placed in
domestic
exchange
Jiang Zhongfa 400,000 Foreign shares
placed in
domestic
exchange
Xu Xuan 400,000 Foreign shares
placed in
domestic
exchange
Shao Liping 395,900 Foreign shares
placed in
domestic
exchange
Xu Xiudi 363,000 Foreign shares
placed in
domestic
exchange
Sun Qunsuo 357,600 Foreign shares
placed in
domestic
exchange
30 / 121
2015 Annual Report
Explanation on associated relationship
among the aforesaid shareholders
Description of the preferred shareholders
whose voting rights were restored and their
numbers of holding shares
Shareholding of top 10 shareholders of Conditional shares
In Shares
Restricted shares can be
Quantity of traded on
Restricted
No Name of the shareholder conditional shares New number
Time can be conditions
held of shares can
traded
be traded
1 Huangshi Dongbei Electromechanical 117,600,000
Group Co., Ltd.
2 Changzhou Zhongke Electric manufacture 800,000
Co., Ltd.
3 Changshu Tianyin Electromechanical Co., 400,000
Ltd.
4 Shaoxing Xingbei Pressing Co., Ltd 400,000
5 Wuhan Xinhua Hardware Factory 400,000
6 Zhejiang Lisheng Electromechanical 400,000
Manufacturing Co., Ltd
7
8
9
10
Explanation on associated relationship among the
aforesaid shareholders
IV.Brief introduction of the controlling shareholder and actual controller
(1) The controlling shareholder
1. Legal
Name Huangshi Dongbei Electromechanical Group Co., Ltd
Legal representative Yang Baichang
Date of incorporation January 18,2002
Principal business activities
Production and sales of refrigerating compressors and electrical motors of
compressors, development and consultation of high-tech products.
Equity of other
domestic/foreign listed
company with share
controlling and share
participation by
controlling shareholder in reporting period
Other explanation
2.The block diagram of the property right and control relationship between the Company and controlling
shareholders
31 / 121
2015 Annual Report
(2) Actual controller
1.Legal
Name China Orient Asset Management Company
Legal representative Zhang Zhiai
Date of incorporation
Principal business activities Acqkuisition, Manage and disposal of Bad assets of financial institution
Equity of other
domestic/foreign listed
company with share
controlling and share
participation by
controlling shareholder in reporting period
Other explanation
2. The company does not exist in the actual control of the special instructions
None
3.Index and date of change of the actual controller during the reporting period
None
4.The block diagram of the property right and control relationship between the Company and the actual
controller
5.The actual controller controlled the company through trust or other asset management means
None
32 / 121
2015 Annual Report
(3)Other information about the controlling shareholder and the actual controller
None
V. Description of the situation of limit on reducing shares
□ Applicable √Not applicable
33 / 121
2015 Annual Report
VII. Situation of the Preferred Shares
□ Applicable √Not applicable
34 / 121
2015 Annual Report
VIII.Particulars about Directors, Supervisors, Senior Executives and Employees
I.Change of shareholding and particulars about remuneration
35 / 121
2015 Annual Report
1. The change of shareholding of directors, supervisors and senior executives who currently hold their posts or left their posts in the report period and particulars
about their remuneration
√Applicable Not applicable
In Shares
The total
The total
amount of
remuneration
Increase or remuneration
received from from
Beginning Expiration Shares held at Shares held decrease in
Reason of shareholder or
Name Position Sex Age date of office date of office the at the the amount of the Company in
the change other related
term term year-beginning year-end shares for the the report
-parties in the
year period
(RMB’0000) report period
(RMB’0000)
（Before tax）
Yang Board Male 60 May 20,2014 November 0 0 0
Baichang Chairman 19,2015
Zhu Board Male 52 November May 19,2017 0 0 0
Jinming Chairman 27,2015
Liao Director Male 52 May 20,2014 March 11, 0 0 0
Hangang 2016
Lin Director, Male 44 May 20,2014 March 11, 0 0 0 45.53
Yinkun General 2016
Manager
Lu Lihua Director,Deputy Female 45 May 20,2014 March 11, 0 0 0 29.48
General 2016
Manager and
Secretary to
the Board
Ruan Director Male 45 May 20,2014 May 19,2017 0 0 0
Zhengya
Zhao Independent Male 61 May 20,2014 May 19,2017 0 0 0 5
Dayou director
Lu Independent Female 56 May 20,2014 May 19,2017 0 0 0 5
Yanying director
Yu Independent Male 50 December May 19,2017 0 0 0 0
Yumiao director 15,2015
Xie Independent Male 52 May 20,2014 November 0 0 0 5
Jincheng director 19,2015
Jiang Min Supervisor Male 47 May 20,2014 May 19,2017 0 0 0
Ma Male 58 May 20,2014 May 19,2017 0 0 0 11.22
Supervisor
Yanping
36 / 121
2015 Annual Report
Hu Female 39 May 20,2014 May 19,2017 0 0 0 16.26
Superisor
Rongzhi
Gao Deputy GM Male 38 April 11, May 19,2017 0 0 0 15.46
Jianjun 2015
Dou Deputy GM Male 34 April 11, May 19,2017 0 0 0 37.59
Zuowei 2015
Zhu Deputy GM Male 34 April 11, May 19,2017 0 0 0 25.81
Yushan 2015
Total / / / / / / 196.35 /
37 / 121
2015 Annual Report
Name Work Experience
Yang He served as board chairman and President of Huangshi Dongbei Electromechanical Co., Ltd.From 2002 to
Baichang May 2010, And he served as Board Chairman of Huangshi Dongbei Electromechanical Group Co.,
Ltd.and board chairman of the Company since May 2010.
Zhu He has served as director and Vice president Manager of Huangshi Dongbei Electromechanical Co.,
Jinming Ltd.From 2002 to May 2010, and he served as Director and President of Huangshi Dongbei
Electromechanical Group Co., Ltd.and Director of the Company since May 2010. he served as board
chairman of the Company since November 27, 2015.
Liao He served as board secretary and assistant of General Manager of the Company, He now served as Director
Hangang of the Company and Assistant President of Huangshi Dongbei Electromechanical Co., Ltd.
Lin Yinkun He served as deputy director of process workshop , director of Manager office , Minister of quality Dept of
the Companhy,General Manager of Wuhu Abaur Mechnical & Electrical Co., Ltd. He now served as
director and General Manager of the Company.
Lu Lihua She served as Director of Fanincial Deptement and assistant of General Manager of Huangshi Dongbei
Electrical Appliance Co., Ltd since 2005, She now served as Deputy General Manager ,and Secretary to the
Board and Dorector of the Company.
Ruan He served as general manager of Changzhou Luoke Electric Co., Ltd.since 2004, He was served as director
Zhengya of the company since May 2008.
Zhao He now serves as director of Tourism Planning, Research and Development Center of Three Gorges
Dayou: University, deputy director of Three Gorges Culture, Economy and Social Development Research Center of
Hubei University Culture and Social Science Key Research Base, member of Yichang City Planning
Commission and Yichang CPPCC, technical consultant of People's Government of Xiling District,
part-time professor of Chongqing Three Gorges College and academic pacesetter of Three Gorges
University for regional economy. He now served as Independent director of the Company.
Lu She served as Teacher of School of Management, Huazhong University Of Science & Technology and
Yanying: School of Managerment, Wuhan University of Hydraulic and Electrical Engineering,and now acts as
professor of Economics and Management School of Wuhan University . She served as Independent
Director of the Company since May 2011.
Yu Had been served as the teaching assistant, lecturer, associate professor in the accounting and auditing
Yumiao department of school of Economics of Wuhan University, professor of accounting department of business
school of Wuhan University; currently, serves as professor and doctoral tutor in accounting department of
school of economics and management of Wuhan University; since December 15, 2015, has been served as
the company’s independent director.
Xie He served as President and Secreaary of the party committee of Zhongnan University of Economices and
Jincheng law School of continuing Education since 2004.
Jiang Min He served as Director of Financial Deptement of Huangshi Dongbei Electromechanical Group Co., Ltd.,
and now acts as assistant president of Huangshi Dongbei Electromechanical Group Co., Ltd，He served as
Supervisor of the Company since May 2011.
Ma She served as director of Purchase Dept , director of Quality Dept, director of Workshop of Huangshi
Yanping DongbeiElectrical Appliance Co., Ltd., He now serves as director of Equiptment Dept and supervisor of
the Company.
Hu 1994 entered Huangshi Dongbei Electrical Appliance Co., Ltd., engaged in sorting parts, product design, te
Rongzhi chnology standards, technical management, project reporting, etc.，He now serves as deputy director of
Chief Engineer office and supervisor of the Company.
2.Directors, supervisors and senior management of equity during the reporting period was granted
incentive
□Applicable √Not applicable
II.Particulars about duty performance of directors, supervisors and senior executives who currently hold
their posts or left their posts in the report period
1. Posts held at corporate shareholders
√Applicable □Not applicable
Name of corporate Starting date of Expiry date of
Name Position
shareholder term of office term of office
Yang Baichang Dongbei Group Board chairman
Zhu Jinming Dongbei Group President
Liao Hangang Board secretary and
Dongbei Group
Assistant president
Jiang Min Dongbei Group Assistant president
Posts held at corporate
shareholders
2.Posts held at other units
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2015 Annual Report
√Applicable □Not applicable
Starting date Expiry date
Name Name of other units Position of term of of term of
office office
Ruan Zhengya Changzhou Luoke Electric
General Manager
Co., Ltd.
Zhao Dayou Three Gorges University Professor
Planning, Research and
Development Center of Three Director
Gorges University
Lu Yanying Accounting professor of
Wuhan University economics and
management
Yu Yumiao Wuhan University Accounting professor of
economics and
management
Oceanwide holdings Independent Director
Semir Independent Director
Posts held at other
units
III. Remuneration of directors, supervisors and senior executives
The decision-making procedure for
remuneration of directors, The shareholders' general meeting decided the remuneration .
supervisors and senior executives:
The determine of remuneration of the According to the early development of various economic indicators to determine
basis of directors, supervisors and the end of the completion of the total remuneration
senior executives
Remuneration of directors, superviso As of the date of this report, the remuneration of directors, supervisors and senior
rs and senior executives management personnel have been paid.
Total actual remuneration of all Refer to the chapter (1) The change of hold share and remuneration
directors, supervisors and senior
management in the end of the report
period.
IV.Change in directors, supervisors and senior executives
Name Titles Change situation Reason
Yang Baichang Board Chairman Leave his post
Liao Hangang Director Leave his post resignation
Lin Yinkun Director Leave his post resignation
Lu Lihua Director Leave his post resignation
Xie Jincheng Independent director Leave his post resignation
V. Information about the received punishments from the securities regulatory agencies in the most recent
three years
√ Applicable □Not applicable
Due to violations in the information disclosure, on September 10, 2014, the controlling shareholder of
the company- Huangshi Dongbei Electromechanical Group Co., Ltd. and the leading executives received the
Written Decision of Administrative Penalty-document of No.76-2014 issued by the CSRC. For the
detailed information, please see the Announcement of Receiving the Written Decision of Administrative
Penalty from CSRC by the Controlling Shareholder- Huangshi Dongbei Electromechanical Group Co., Ltd.
disclosed on the Shanghai Stock Exchange（No：2014-026）.
The company had completed the rectification in 2012 for the punishment items.
VI. The structure of employees in the parent Company and the principal subsidiaries
(1)Particulars of Employees
The number of employees in the parent Company 2,972
The number of employees in the principal subsidiaries 941
Total 3,913
Parent Company and subsidiaries are required to bear the 270
costs of retired employees.
Divided by function
Type Person
Production personnel 3170
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2015 Annual Report
Sales personnel 71
Technical personnel 413
Financial personnel 32
Administrative personnel 227
Total 3,913
Education status
Type Total（Person）
Junior college and above 1,416
Technical secondary shool and Senior High School 2,497
Total 3,913
(2) Remuneration policy
According to business development of company status, developed a level of remuneration and benefits p
olicies that adapted to the development stage, is committed to create a happy life for the employees.(3)
(3) Training plan
Staff training is divided into two blocks: 1. pre-job training: training new employees to achieve three lev
el training.So that new employees are familiar with and agree with the corporate culture to adapt to work
as soon as possible. 2.job training: to carry out a variety of training in accordance with the annual traini
ng plan .Enhance staff skills and qualities to ensure that employees complete tasks.
40 / 121
2015 Annual Report
IX. Administrative structure
I.Basic state of corporate governance
During the report period, the company has strictly fulfilled the requirements of “Corporate Law”,
“Securities Law”, “Articles of Association”, China Securities Regulatory Commission, Shanghai Stock
Exchange, the relevant laws and regulations and the regular documents, continuously improved the
corporate governance structure, strengthened the information disclosure, standardized the company’s
operation, and enhanced the governance level of the company. The shareholders meeting, the Board of
Directors, the Supervisor Committee and the management of the company shall have clear rights and
duties, and the corporate governance structure of the company has basically met the modern enterprise
system and the requirements of “Governance Rules of Listed Companies”. To continually strengthen the
relevant standard governance, the company has issued “Annual Evaluation Report of Internal Control for
Dongbei B Shares in 2012”, “Audit Report of Internal Control for Dongbei B Shares”, “Management
Method of Foreign Investment for Dongbei B Shares” and other series of standard governance system of
the company according to the relevant laws and regulations of China Securities Regulatory Commission
and Shanghai Stock Exchange.
The company has abided by “Registration and Filing System on Learners of Inside Information
for Dongbei B Shares”, “Confidential System of Inside Information for Dongbei B Shares” and
“Registration and Management System on Learners of Inside Information for Dongbei B Shares” to
conscientiously do the registration and record on learners of inside information well, and timely fill in
the registration form of inside information learners.During the reporting period, the company strictly in
accordance with the requirements of the above system, strict implementation of the relevant provisions,
earnestly inside information insider's registration, filing work to strengthen the confidentiality of inside
information, to ensure fair information disclosure.
Does there exist any difference in compliance with the corporate governance , the PRC Company Law
and the relevant provisions of CSRC,Any discrepancies should explain why
None
II. Brief Introduction of Shareholders' General Meeting
Sessions Meeting Date Disclosure index Disclosure date
Annual Genral Meeting of May 22,2015 www.sse.com.cn May 23,2015
2014
The first provisional December 14,2015 www.sse.com.cn December 15,2015
shareholders’ General
meeting in 2015
The statement of Shareholders' General Meeting:
Annual Genral Meeting of 2014;
The Work Report of the Board of Directors For 2014;
The work Report of the Supervisory Committee for 2014;
Proposal for the annual report for 2014 and its summary;
Proposal for the Final Accounting Report for 2014;
Proposal for the Preplan for Profit Distribution for 2014;
Proposal on Amending the Articles of Association and the Rules of Procedure for the General
Shareholder Meeting;
To examined the Proposal for Renewing the Engagement of Certified Public Accountants and the
Proposal for Internal Audit Institution;
To examined the Proposal Concerning the Credit Line for the Company for 2015;
Proposal on Providing the Guarantee to the Company’s Controlling Shareholder and its Subsidiaries;
Proposal on Providing the Guarantee to the Company’s Subsidiaries;
Proposal on Providing the Guarantee to Huangshi Aibo Technology Development Co., Ltd;
Proposal on Providing the Guarantee to Jiangsu Luoke Electrical Co., Ltd;
To examined the Proposal for The information of Daily Related Transactions of 2014 and
Announcement of Expected Daily related transactions in 2015;
2014 Annual Report hear Huangshi Dongbei Electrical Appliance Co., Ltd. Board Audit Committee..
Examination of the proposal of the 2014 Annual Report of the Independent Directors' Work ;
The first provisional shareholders’ General meeting in 2015;
41 / 121
2015 Annual Report
Proposal on Amending the Articles of Association of the Company;
Proposal on the Election of Mr. Zhu Yushan as the Director of the Company's Sixth Session Board of
Directors;
Proposal on the Election of Mr. Yu Yumiao as the Independent Director of the Company's Sixth Session
Board of Directors.
III. Routine work of the board of directors
(1). Board meetings and resolutions
Attendance
of the
sharehoold
Attendance of board meetings
ers’
general
meeting
Wheth
er on
the
reason
Whether s why
the not
indepen person
Name The
dent ally
Number of attendance
director The supposed Attendance attend
Attendance meetings record of
s times of through Absence the
in person attendance by sharehoold
attendance this agent (times) meetin
(times) means of ers’
year (times) g of
communication general
the
meeting
board
of
directo
r for
twice
succes
sively.
Yang No 4 4 0 0 0 No 1
Baichang
Zhu No 6 6 0 0 0 No 2
Jinming
Liao No 6 6 0 0 0 No 2
Hangang
Lin Yinkun No 6 6 0 0 0 No 2
Lu Lihua No 6 6 0 0 0 No 2
Ruan No 6 4 4 2 0 No 1
Zhengya
Lu Yes 6 6 4 0 0 No 2
Yanying
Zhao Yes 6 6 4 0 0 No 2
Dayou
Xie Yes 4 4 3 0 0 No 1
Jincheng
Yu Yes 2 2 1 0 0 No 1
Yumiao
Explanation personally did not attend two consecutive meetings of the Board
None
The number of the meetings of the board of directors 6
within the year
Of which: Number of field meetings 2
Number of meetings held by means of communication 0
Site and the number of meetings was held of 4
communication
42 / 121
2015 Annual Report
(2)Objection of independent directors on some relevant issues
Objection of independent directors on some relevant issues
None
(3)Other
IV.Important observations and recommendations in their duties during the reporting period raised under
the Special Committee of the Board
During the reporting period, the Board of Directors under the special committee are in favor of the bill
under consideration in the performance of their duties, have not made other comments and suggestions.
V.The Supervisory Committee found that the company's explanation risk
During the reporting period, the Supervisory Committee of the company regularly reports, according to
the operation, financial condition, as well as related party transactions and other internal control
self-assessment report and other work to perform supervisory duties. Supervisory Committee on
oversight matters during the reporting period without objection.
VI. The company and its controlling shareholder in business, personnel, assets, organization, finance and
other aspects of existence does not guarantee the independence, can not maintain the ability to operate
independently of note
The company possesses the independent production capability and independent operating ability, strictly
maintained the independence in terms of business, personnel, assets, organizations, finance and so on.
There is no circumstance that the company cannot guarantee its independence or self-operating ability
separately from its controlling shareholder.
The company's countermeasures, work schedule and follow-up work plan to the existed horizontal
competition
None
VII.Particulars about mechanism of appraisal of senior executives and establishment and implementation
of stimulation mechanism in the report period
During the reporting period, Dongbei B shares senior management compensation management approach
"firm basis for consideration by the Board of Directors and the annual management objectives for senior
managers to check and assessment.
VIII. Whether disclose the self-assessment report on internal control
√ Applicable □ Not applicable
The company will disclose the Company’s 2015 Annual Self-assessment Report on Internal Control at
the date of disclosing the annual report, for the full text, please see the company’s announcements
disclosed on Shanghai Stock Exchange website (www.sse.com.cn).
Description of material deficiencies in the internal control during the reporting period
□ Applicable √ Not applicable
IX. Statement on auditor's report on internal control
The Company prepared and disclosed Report on Self-evaluation of Internal Control for 2015. Hubei
Daxin Certified Public Accountants Co., Ltd. audited the internal control of the Company and issued
Auditor's Report on Internal Control. The full text of the said report was published at the website of
Shanghai Stock Exchange (http: / / www.sse.com.cn). Refer to the appendix for details of the auditor's
report on internal control.
Whether the disclosure of internal control audit report: Yes
X.Other
43 / 121
2015 Annual Report
X. Information about the corporate bonds
□ Applicable √ Not applicable
44 / 121
2015 Annual Report
XI. Financial Report
I.Auditor’s Reoprt
√ Applicable □ Not applicable
Da Xin Shen Zi (2016)No.: 2-00825
To all shareholders of Huangshi Dongbei Electrical Appliance Co., Ltd.
We audited accompanying financial statements of Huangshi Dongbei Electrical Appliance Co., Ltd.
(hereinafter referred to as "the Company"), including Consolidation and parent Company balance sheet
on December 31, 2015, Consolidation and parent Company income statement, Consolidation and parent
Company cash flow statement for the year 2015 and Consolidation and parent Company statement of
change in shareholders' equity and the notes to financial statements.
I. Management’s responsibility for the financial statements
Preparation of financial statements in accordance with the Accounting Standards for Business
Enterprises is the responsibility of the management of the Company. Such responsibility includes:
(1) Prepare the financial statements according to business enterprises regulation, so that making
reasonable accounting estimate;
(2) design, implementation and maintenance of internal control related to the preparation of
financial statements so that financial statements are free from material misstatement caused by
fraudulent practices or errors.
II. Auditor’s responsibility
Our responsibility is to express an opinion on these consolidated financial statements based on our audit
and to report our opinion solely to you, as a body, and for no other purpose. We conducted our audit in
accordance with International Standards on Auditing, Those standards require that we comply with
ethical requirements and plan and perform the audit to obtain reasonable assurance whether the
consolidated financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the consolidated financial statements. The procedures selected depend on the auditor’s judgment,
including the assessment of the risks of material misstatement of the consolidated financial statements,
whether due to fraud or error, In making those risk assessments, the auditor considers internal control
relevant to the Group’s preparation and fair presentation of the consolidated financial statements in order
to design audit procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Group’s internal control. An audit also includes
evaluating the appropriateness of accounting policies used and the reasonableness of accounting
estimates made by management, as well as evaluating the overall presentation of the consolidated
financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinion.
III. Opinion
In our opinion, the financial statements of the Company have been prepared in accordance with the
provisions of Accounting Standards for Business Enterprises and give a fair view, in all material aspects,
of the financial position of the Company as at December 31, 2015 and its operating results and cash flow
for 2015.
Hubei Daxin Certified Public Accountants Co., Ltd. ( Special General Partnership)
Chinese C.P.A.: Zhang Ling
Beijing China Chinese C.P.A.: Jiang Yanhong
April 21, 2016
45 / 121
2015 Annual Report
II.Financial statements
Consolidated Balance Sheet
December 31,2015
Prepared by: Huangshi Dongbei Electrical Appliance Co., Ltd.
In RMB
Items Notes Year-end balance Year-beginning balance
Current asset：
Monetary fund 656,113,006.13 653,857,922.46
Settlement provision
Outgoing call loan
Financial assets measured at fair value with
variations accounted into current income
account
Derivative financial assets
Bill receivable 589,083,601.27 840,593,346.97
Account receivable 894,837,574.04 817,590,563.96
Prepayments 121,392,948.44 138,164,402.83
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance contracts receivable
Interest receivable
Dividend receivable 27,395,464.63 27,395,464.63
Other account receivable 9,304,868.79 22,782,353.03
Repurchasing of financial assets
Inventories 407,247,957.17 432,247,546.82
Assets held for sales
Non-current asset due in 1 year
Other current asset 86,403,299.73 37,504,806.36
Total of current assets 2,791,778,720.20 2,970,136,407.06
Non-current assets：
Loans and payment on other’s behalf disbursed
Disposable financial asset
Expired investment in possess
Long-term receivable
Long term share equity investment 7,028,918.54 5,349,770.71
Property investment 3,546,791.60 3,711,835.76
Fixed assets 1,496,280,148.15 862,593,882.87
Construction in progress 33,236,407.41 220,621,843.79
Engineering material
Fixed asset disposal
Production physical assets
Gas & petrol
Intangible assets 93,977,307.89 72,432,752.78
R & D petrol
Goodwill
Long-germ expenses to be amortized 10,789,780.00 7,726,742.16
Differed income tax asset 4,495,776.68 4,512,676.03
Other non-current asset
Total of non-current assets 1,649,355,130.27 1,176,949,504.10
Total of assets 4,441,133,850.47 4,147,085,911.16
Current liabilities
Short-term loans 629,692,080.00 778,628,180.00
Loan from Central Bank
46 / 121
2015 Annual Report
Deposit received and hold for others
Call loan received
Financial liabilities measured at fair value with
variations accounted into current income
account
Derivative financial liabilities
Bill payable 1,107,083,483.84 1,057,511,876.03
Account payable 745,021,206.81 715,143,775.85
Advance payment 17,623,716.91 14,085,397.48
Selling of repurchased financial assets
Fees and commissions receivable
Employees’ wage payable 23,295,962.14 26,745,392.85
Tax payable 26,612,899.33 25,721,135.19
Interest payable 5,326,171.89
Dividend payable 10,009,121.12 10,009,121.12
Other account payable 148,495,035.91 205,754,993.86
Reinsurance fee payable
Insurance contract provision
Entrusted trading of securities
Entrusted selling of securities
Liabilities held for sales
Non-current liability due in 1 year
Other current liability
Total of current liability 2,713,159,677.95 2,833,599,872.38
Non-current liabilities：
Long-term loan 356,440,000.00 121,440,000.00
Bond payable
Including：preferred stock
Sustainable debt
Long-term payable 30,373,108.31 42,636,983.48
Long-term payable employees’s remuneration
Special payable
Expected liabilities
Deferred income 108,098,357.37 30,670,421.67
Deferred income tax liability
Other non-current liabilities
Total non-current liabilities 494,911,465.68 194,747,405.15
Total of liability 3,208,071,143.63 3,028,347,277.53
Owners’ equity
Share capital 235,000,000.00 235,000,000.00
Other equity instruments
Including：preferred stock
Sustainable debt
Capital reserves 190,111,836.26 190,111,836.26
Less：Shares in stock
Other comprehensive income 526,019.67 168,961.03
Special reserves
Surplus reserves 45,885,564.58 43,536,283.35
Common risk provision
Undistributed profit 532,439,208.01 464,995,647.55
Total of owner’s equity belong to the parent 1,003,962,628.52 933,812,728.19
company
Minority shareholders’ equity 229,100,078.32 184,925,905.44
Total of owners’ equity 1,233,062,706.84 1,118,738,633.63
Total of liabilities and owners’ equity 4,441,133,850.47 4,147,085,911.16
Legal Representative: Zhu Jinming Person in charge of accounting：Lu Lihua
Accounting Dept Leader: Ma Li
47 / 121
2015 Annual Report
Balance sheet of Parent Company
December 31, 2015
Prepared by: Huangshi Dongbei Electrical Appliance Co., Ltd.
In RMB
Items Notes Year-end balance Year-beginning balance
Current asset：
Monetary fund 325,305,123.53 358,050,944.54
Financial assets measured at fair value with
variations accounted into current income
account
Derivative financial assets
Bill receivable 410,366,705.94 417,492,423.70
Account receivable 675,963,140.96 600,503,827.10
Prepayments 126,676,895.86 149,897,189.56
Interest receivable
Dividend receivable 27,395,464.63 27,395,464.63
Other account receivable 1,992,984.09 7,582,803.63
Inventories 282,253,627.96 293,552,850.72
Assets held for sales
Non-current asset due in 1 year
Other current asset 6,862,142.96 6,552,181.01
Total of current assets 1,856,816,085.93 1,861,027,684.89
Non-current assets：
Disposable financial asset
Expired investment in possess
Long-term receivable
Long term share equity investment 188,161,074.70 188,161,074.70
Property investment
Fixed assets 525,347,049.61 478,823,769.82
Construction in progress 22,485,248.13 52,293,230.35
Engineering material
Fixed asset disposal
Production physical assets
Gas & petrol
Intangible assets 38,946,773.60 39,570,660.06
R & D petrol
Goodwill
Long-germ expenses to be amortized 7,327,096.80 6,497,588.93
Deferred income tax asset 3,716,807.47 3,739,887.66
Other non-current asset
Total of non-current assets 785,984,050.31 769,086,211.52
Total of assets 2,642,800,136.24 2,630,113,896.41
Current liabilities
Short-term loans 380,782,400.00 555,166,380.00
Financial liabilities measured at fair value with
variations accounted into current income
account
Derivative financial liabilities
Bill payable 644,709,605.88 564,518,095.51
Account payable 306,179,192.05 291,220,516.42
Advance payment 541,012,376.76 417,897,215.20
Employees’ wage payable 9,896,403.02 11,128,452.79
Tax payable 22,117,379.74 22,738,424.71
Interest payable 3,753,470.19
Dividend payable
Other account payable 73,193,970.95 19,004,795.46
48 / 121
2015 Annual Report
Liabilities held for sales
Non-current liability due in 1 year
Other current liability
Total of current liability 1,981,644,798.59 1,881,673,880.09
Non-current liabilities：
Long-term loan 120,000,000.00
Bond payable
Including：preferred stock
Sustainable debt
Long-term payable
Employees’ wage payable
Special payable
Expected liabilities
Deferred income 32,581,217.34 23,358,708.34
Deferred income tax liability
Other non-current liabilities
Total of Non-current liabilities 32,581,217.34 143,358,708.34
Total of liability 2,014,226,015.93 2,025,032,588.43
Owners’ equity
Share capital 235,000,000.00 235,000,000.00
Other equity instrument
Including：preferred stock
Sustainable debt
Capital reserves 90,801,937.51 90,801,937.51
Less：Shares in stock
Other comprehensive income
Special reserves
Surplus reserves 45,885,564.58 43,536,283.35
Undistributed profit 256,886,618.22 235,743,087.12
Total of owners’ equity 628,574,120.31 605,081,307.98
Total of liabilities and owners’ equity 2,642,800,136.24 2,630,113,896.41
Legal Representative: Zhu Jinming Person in charge of accounting：Lu Lihua
Accounting Dept Leader: Ma Li
Consolidated Income Statement
January –December 2015
In RMB
Year-end Year-beginning
Items Notes
balance balance
3,420,131,010.9 3,559,013,065.68
I. Income from the key business
8
Incl：Business income
Interest income
Insurance fee earned
Fee and commission received
3,343,237,607.6 3,487,445,719.44
II. Total business cost
8
2,909,310,999.9 3,073,946,585.99
Incl：Business cost
2
Interest expense
Fee and commission paid
Insurance discharge payment
Net claim amount paid
49 / 121
2015 Annual Report
Insurance policy dividend paid
Insurance policy dividend paid
Reinsurance expenses
Business tax and surcharge 12,666,658.75 15,069,492.69
Sales expense 103,477,015.27 88,372,759.38
Administrative expense 265,472,065.47 262,258,841.68
Financial expenses 51,615,584.69 49,280,328.08
Asset impairment loss 695,283.58 -1,482,288.38
Add：Gains from change of fir value （“-”for loss）
Investment gain（“-”for loss） 1,679,147.83 -219,428.66
Incl: investment gains from affiliates
Gains from currency exchange（“-”for loss）
III. Operational profit（“-”for loss） 78,572,551.13 71,347,917.58
Add ：Non-operational income 28,269,183.95 32,789,210.62
Including：Income from disposal of non-current assets 1,822,796.20 36,947.96
Less：Non business expenses 6,048,302.54 9,083,563.75
Incl：Loss from disposal of non-current assets 4,660,500.90 6,164,369.73
IV.Total profit(“-”for loss) 100,793,432.54 95,053,564.45
Less：Income tax expenses 8,326,417.97 11,855,152.57
V. Net profit 92,467,014.57 83,198,411.88
Net profit attributable to the owners of parent company 69,792,841.69 59,518,090.82
Minority shareholders’ equity 22,674,172.88 23,680,321.06
VI. Other comprehensive income 357,058.64 362,026.73
Net of profit of other comprehensive income attributable to owners 357,058.64 362,026.73
of the parent company.
（ I ） Other comprehensive income items that will not be
reclassified into gains/losses in the subsequent accounting period
1.Re-measurement of defined benefit plans of changes in net debt or
net assets
2.Other comprehensive income under the equity method investee ca
n not be reclassified into profit or loss.
（II） 357,058.64 362,026.73
Other comprehensive income that will be reclassified into profit or
loss.
1.Other comprehensive income under the equity method investee ca
n be reclassified into profit or loss.
2.Gains and losses from changes in fair value available for sale fina
ncial assets
3.Held-to-maturity investments reclassified to gains and losses of av
ailable for sale financial assets
4.The effective portion of cash flow hedges and losses
5.Translation differences in currency financial statements 357,058.64 362,026.73
6.Other
7.Net of profit of other comprehensive income attributable to Min
ority shareholders’ equity
VII. Total comprehensive income 92,824,073.21 83,560,438.61
Total comprehensive income attributable to the owner of the parent 70,149,900.33 59,880,117.55
company
Total comprehensive income attributable minority shareholders 22,674,172.88 23,680,321.06
VIII. Earnings per share
（I）Basic earnings per share 0.297 0.253
(II)Diluted earnings per share
The current business combination under common control, the net profits of the combined party before ac
hieved net profit of RMB 0, last period the combined party realized RMB 0.
Legal Representative: Zhu Jinming Person in charge of accounting：Lu Lihua
Accounting Dept Leader: Ma Li
50 / 121
2015 Annual Report
Income statement of the Parent Company
January -December 2015
In RMB
Amount of the Amount of
Items Notes
Report period previous year
2,676,819,821.7 2,765,630,754.8
I. Income from the key business
1 0
2,445,959,071.5 2,535,308,605.9
Incl：Business cost
2 9
Business tax and surcharge 6,752,688.50 8,599,598.52
Sales expense 58,985,321.21 52,878,410.53
Administrative expense 133,049,190.09 138,227,763.77
Financial expenses 16,127,140.93 24,223,717.80
Asset impairment loss -153,867.95 -2,462,365.07
Add：Gains from change of fir value （“-”for loss）
Investment gain（“-”for loss） 30,513,197.90
Incl: investment gains from affiliates
II. Operational profit（“-”for loss） 16,100,277.41 39,368,221.16
Add ：Non-operational income 11,159,909.44 26,710,647.07
Including：Income from disposal of non-current assets 602,157.80 11,787,870.78
Less：Non business expenses 3,744,294.33 6,580,173.68
Incl：Loss from disposal of non-current assets 2,600,036.44 4,045,057.76
III.Total profit(“-”for loss) 23,515,892.52 59,498,694.55
Less：Income tax expenses 23,080.19 3,577,794.54
IV. Net profit（“-”for net loss） 23,492,812.33 55,920,900.01
V.Net of profit of other comprehensive income
（ I ） Other comprehensive income items that will not be
reclassified into gains/losses in the subsequent accounting period
1.Re-measurement of defined benefit plans of changes in net deb
t or net assets
2.Other comprehensive income under the equity method investee
can not be reclassified into profit or loss.
（ II ）
Other comprehensive income that will be reclassified into profit
or loss.
1.Other comprehensive income under the equity method investee
can be reclassified into profit or loss.
2.Gains and losses from changes in fair value available for sale fi
nancial assets
3.Held-to-maturity investments reclassified to gains and losses of
available for sale financial assets
4.The effective portion of cash flow hedges and losses
5.Translation differences in currency financial statements
6.Other
VI. Total comprehensive income 23,492,812.33 55,920,900.01
VII. Earnings per share：
（I）Basic earnings per share
(II)Diluted earnings per share
Legal Representative: Zhu Jinming Person in charge of accounting：Lu Lihua
Accounting Dept Leader: Ma Li
51 / 121
2015 Annual Report
Consolidated Cash flow statement
January-December 2015
In RMB
Amount of the Report
Items Notes Amount of previous year
period
I.Net cash flow form business operation
Cash received from sales of products and 2,789,146,855.68 2,452,580,693.51
providing of services
Net increase of customer deposits and capital
kept for brother company
Net increase of loans from central bank
Net increase of inter bank loans from other
financial bodies
Cash received against original insurance
contract
Net cash received from reinsurance business
Net increase of client deposit and investment
Net increase of trade financial asset disposal
Cash received as interest, processing fee, and
commission
Net increase of inter bank fund received
Net increase of repurchasing business
Tax returned 83,771,977.45 60,989,962.68
Other cash received from business operation 73,730,753.03 78,439,848.13
Subtotal of cash inflow from business activities 2,946,649,586.16 2,592,010,504.32
Cash paid for purchasing of merchandise and 1,849,052,183.82 1,816,887,761.14
services
Net increase of client trade and advance
Net increase of savings in central bank and
brother company
Cash paid for original contract claim
Cash paid for interest, processing fee and
commission
Cash paid for policy dividend
Cash paid to staffs or paid for staffs 323,669,734.93 329,099,469.42
Taxes paid 71,761,946.45 94,755,885.88
Other cash paid for business activities 200,415,666.15 145,832,947.59
Subtotal of cash outflow from business 2,444,899,531.35 2,386,576,064.03
activities
Cash flow generated by business operation, net 501,750,054.81 205,434,440.29
II. Cash flow generated by investing
Cash received from investment retrieving
Cash received as investment gains
Net cash retrieved from disposal of fixed 9,715.20 71,178.43
assets, intangible assets, and other long-term
assets
Net cash received from disposal of subsidiaries
or other operational units
Other investment related cash received 33,874,000.00 7,000,000.00
Subtotal of cash inflow due to investment 33,883,715.20 7,071,178.43
activities
Cash paid for construction of fixed assets, 499,803,473.88 254,069,537.90
intangible assets and other long-term assets
Cash paid at investment
Net increase of loan against pledge
Net cash received from subsidiaries and other
operational units
Other cash paid for investment activities
Subtotal of cash outflow due to investment 499,803,473.88 254,069,537.90
activities
52 / 121
2015 Annual Report
Net cash flow generated by investment -465,919,758.68 -246,998,359.47
III.Cash flow generated by financing
Cash received as investment 21,500,000.00 11,500,000.00
Incl: Cash received as investment from minor
shareholders
Cash received as loans 1,723,336,780.00 1,712,329,196.00
Cash received from bond placing
Other financing –related cash received 22,500,000.00
Subtotal of cash inflow from financing 1,744,836,780.00 1,746,329,196.00
activities
Cash to repay debts 1,634,108,700.00 1,598,207,616.00
Cash paid as dividend, profit, or interests 60,721,378.77 78,778,498.58
Incl: Dividend and profit paid by subsidiaries
to minor shareholders
Other financing –related cash received 36,469.71 1,892,776.00
Subtotal of cash outflow due to financing 1,694,866,548.48 1,678,878,890.58
activities
Net cash flow generated by financing 49,970,231.52 67,450,305.42
IV. Influence of exchange rate alternation on 476,112.32 168,961.03
cash and cash equivalents
V.Net increase of cash and cash equivalents 86,276,639.97 26,055,347.27
Add：Balance of cash and cash equivalents at 467,564,876.57 441,509,529.30
the beginning of term
VI. Balance of cash and cash equivalents at the 553,841,516.54 467,564,876.57
end of term
Legal Representative: Zhu Jinming Person in charge of accounting：Lu Lihua
Accounting Dept Leader: Ma Li
Parent Company Cash flow statement
January –December 2015
In RMB
Amount of the Report
Items Notes Amount of previous year
period
I.Cash flow from operating activities
Cash received from sales of goods or rending 1,759,622,841.26 1,286,328,824.52
of services
Refunded taxes and levies 77,377,677.45 41,331,321.68
Other cash receipts related to operating 19,885,209.61 20,310,478.17
activities
Subtotal of cash inflow 1,856,885,728.32 1,347,970,624.37
Cash paid for purchasing commodities and 1,205,995,309.41 958,977,473.49
accepting labor
Cash paid to staffs or paid for staffs 139,856,187.55 160,138,880.11
Taxes paid 14,114,160.79 25,260,472.69
Other cash paid for business activities 91,979,913.82 100,572,498.30
Sub-total of cash outflow 1,451,945,571.57 1,244,949,324.59
Cash flow generated by business operation, 404,940,156.75 103,021,299.78
net
II.Cash flow generated by investing
Cash received from investment retrieving
Cash received as investment gains
Net cash retrieved from disposal of fixed 9,715.20 71,178.43
assets, intangible assets, and other long-term
assets
Net cash received from disposal of
subsidiaries or other operational units
Other investment-related cash received 10,740,000.00 5,000,000.00
Sub-total of cash inflow 10,749,715.20 5,071,178.43
53 / 121
2015 Annual Report
Cash paid for construction of fixed assets, 49,048,240.47 56,109,020.39
intangible assets and other long-term assets
Cash paid as investment
Net cash received from subsidiaries and other 148,000,000.00
operational units
Other cash paid for investment activities
Sub-total of cash outflow 49,048,240.47 204,109,020.39
Net cash flow generated by investment -38,298,525.27 -199,037,841.96
III.Cash flow generated by financing
Cash received as investment
Cash received as loans 1,043,262,920.00 1,327,321,157.00
Other financing –related cash received
Subtotal of cash inflow from financing 1,043,262,920.00 1,327,321,157.00
activities
Cash to repay debts 1,337,646,900.00 1,201,384,667.00
Cash paid as dividend, profit, or interests 25,328,016.52 52,658,912.99
Other financing –related cash received
Subtotal of cash outflow due to financing 1,362,974,916.52 1,254,043,579.99
activities
Net cash flow generated by financing -319,711,996.52 73,277,577.01
IV. Influence of exchange rate alternation on
cash and cash equivalents
V.Net increase of cash and cash equivalents 46,929,634.96 -22,738,965.17
Add: balance of cash and cash equivalents at 224,771,156.44 247,510,121.61
the beginning of term
VI ..Balance of cash and cash equivalents at 271,700,791.40 224,771,156.44
the end of term
Legal Representative: Zhu Jinming Person in charge of accounting：Lu Lihua
Accounting Dept Leader: Ma Li
54 / 121
2015 Annual Report
Consolidated Statement on Change in Owners’ Equity
January-December 2015
In RMB
Amount in this period
Owner’s equity Attributable to the Parent Company
Capital Minor Total of
Items Other Equity instrusment
reserves Less:
Other
Speciali
Commo
Attributa shareholder owners’
Share
Shares
Compre
zed
Surplus n risk
ble s’ equity equity
Capital preferre hensive reserves provisio
Sustaina Other in stock reserve profit
d stock Income n
ble debt
I.Balance at the end of last 235,000, 190,111, 168,961. 43,536,2 464,995, 184,925,90 1,118,738,6
000.00 836.26 03 83.35 647.55 5.44 33.63
year
Add: Change of accounting
policy
Correcting of previous
errors
Merger of entities under
common control
Other
II.Balance at the beginning 235,000, 190,111, 168,961. 43,536,2 464,995, 184,925,90 1,118,738,6
000.00 836.26 03 83.35 647.55 5.44 33.63
of current year
III.Changed in the current 357,058. 2,349,28 67,443,5 44,174,172. 114,324,07
64 1.23 60.46 88 3.21
year
（1）Total comprehensive 357,058. 69,792,8 22,674,172. 92,824,073.
income 64 41.69 88 21
（ II ） Investment or 21,500,000. 21,500,000.
decreasing of capital by 00 00
owners
1 ． Ordinary Shares investe 21,500,000. 21,500,000.
d by hareholders 00 00
2 ． Holders of other equity i
nstruments invested capital
55 / 121
2015 Annual Report
3．Allotment to the owners
(or shareholders)
4．Other
(IV) Internal transferring of 2,349,28 -2,349,2
owners’ equity 1.23 81.23
1. Capitalizing of capital 2,349,28 -2,349,2
reserves (or to capital 1.23 81.23
shares)
2. Capitalizing of surplus
reserves (or to capital
shares)
3 ． Making up losses by
surplus reserves.
4. Other
(VI )Special reserves
1. Provided this year
2．Used this term
（VII）Other
IV. Balance at the end of
this term
(V) Special reserves
1. Provided this year
2．Used this term
（VI）Other
IV. Balance at the end of 235,000, 190,111, 526,019. 45,885,5 532,439, 229,100,07 1,233,062,7
this term 000.00 836.26 67 64.58 208.01 8.32 06.84
Amount in last year
Owner’s equity Attributable to the Parent Company
Capital Minor Total of
Items Other Equity instrusment Other Commo
reserves Less: Speciali Attributa shareholder owners’
Share Compre Surplus n risk s’ equity equity
Shares zed ble
Capital preferre hensive reserves provisio
Sustaina Other in stock reserve profit
d stock Income n
ble debt
I.Balance at the end of last 235,000, 190,111, -193,065 37,944,1 434,569, 160,553,10 1,057,985,7
000.00 836.26 .70 93.35 646.73 0.95 11.59
year
56 / 121
2015 Annual Report
Add: Change of accounting
policy
Correcting of previous
errors
Merger of entities under
common control
Other
II.Balance at the beginning 235,000, 190,111, -193,065 37,944,1 434,569, 160,553,10 1,057,985,7
000.00 836.26 .70 93.35 646.73 0.95 11.59
of current year
III.Changed in the current 362,026. 5,592,09 30,426,0 24,372,804. 60,752,922.
73 0.00 00.82 49 04
year
（1）Total comprehensive 362,026. 59,518,0 23,680,321. 83,560,438.
income 73 90.82 06 61
（ II ） Investment or 692,483.43 692,483.43
decreasing of capital by
owners
1 ． Ordinary Shares investe
d by hareholders
2．Holders of other equity i
nstruments invested capital
3．Allotment to the owners
(or shareholders)
4．Other 692,483.43 692,483.43
(IV) Internal transferring of 5,592,09 -29,092, -23,500,000
owners’ equity 0.00 090.00 .00
1. Capitalizing of capital 5,592,09 -5,592,0
reserves (or to capital 0.00 90.00
shares)
2. Capitalizing of surplus
reserves (or to capital
shares)
3 ． Making up losses by -23,500, -23,500,000
surplus reserves. 000.00 .00
4. Other
(VI )Special reserves
1. Provided this year
2．Used this term
（VII）Other
57 / 121
2015 Annual Report
IV. Balance at the end of
this term
(V) Special reserves
1. Provided this year
2．Used this term
（VI）Other
IV. Balance at the end of 235,000, 190,111, 168,961. 43,536,2 464,995, 184,925,90 1,118,738,6
this term 000.00 836.26 03 83.35 647.55 5.44 33.63
Legal Representative: Zhu Jinming Person in charge of accounting：Lu Lihua Accounting Dept Leader: Ma Li
Statement of change in owner’s Equity of the Parent Company
January-December 2015
in RMB
Amount in this period
Other Equity instrusment Other
Less: Total of
Items Share Capital Comprehe Specialize Surplus Attributabl
preferred Shares in owners’
capital Sustainable Other reserves nsive d reserve reserves e profit
stock stock equity
debt Income
I.Balance at the end of last 235,000,00 90,801,937 43,536,28 235,743,0 605,081,30
year 0.00 .51 3.35 87.12 7.98
Add: Change of accounting
policy
Correcting of previous errors
Other
II.Balance at the beginning of 235,000,00 90,801,937 43,536,28 235,743,0 605,081,30
0.00 .51 3.35 87.12 7.98
current year
2,349,281. 21,143,53 23,492,812
III.Changed in the current year 23 1.10 .33
（ 1 ） Total comprehensive 23,492,81 23,492,812
income 2.33 .33
（II）Investment or decreasing
58 / 121
2015 Annual Report
of capital by owners
1．Ordinary Shares invested b
y hareholders
2 ．Holders of other equity ins
truments invested capital
3．Allotment to the owners (or
shareholders)
4．Other
2,349,281. -2,349,281
（III）Profit allotment
23 .23
1.Providing of surplus 2,349,281. -2,349,281
reserves 23 .23
2．Allotment to the owners (or
shareholders)
3．Other
(IV)Internal transferring of
owners’ equity
1. Capitalizing of capital
reserves (or to capital shares)
2. Capitalizing of surplus
reserves (or to capital shares)
3 ． Making up losses by
surplus reserves.
4. Other
(V) Special reserves
1. Provided this year
2．Used this term
（VI）Other
IV. Balance at the end of this 235,000,00 90,801,937 45,885,56 256,886,6 628,574,12
term 0.00 .51 4.58 18.22 0.31
Amount in last year
Other Equity instrusment Other
Less: Total of
Items Share Capital Comprehe Specialize Surplus Attributabl
preferred Shares in owners’
Capital Sustainable Other reserves nsive d reserve reserves e profit
stock stock equity
debt Income
I.Balance at the end of last 235,000,00 90,801,937 37,944,19 208,914,2 572,660,40
59 / 121
2015 Annual Report
year 0.00 .51 3.35 77.11 7.97
Add: Change of accounting
policy
Correcting of previous errors
Other
II.Balance at the beginning of 235,000,00 90,801,937 37,944,19 208,914,2 572,660,40
0.00 .51 3.35 77.11 7.97
current year
III.Changed in the current 5,592,090. 26,828,81 32,420,900
00 0.01 .01
year
（1）Total comprehensive 55,920,90 55,920,900
income 0.01 .01
（ II ） Investment or
decreasing of capital by
owners
1 ． Ordinary Shares invested
by hareholders
2 ． Holders of other equity in
struments invested capital
3．Allotment to the owners
(or shareholders)
4．Other
5,592,090. -29,092,09 -23,500,00
（III）Profit allotment
00 0.00 0.00
1.Providing of surplus 5,592,090. -5,592,090
reserves 00 .00
2．Allotment to the owners -23,500,00 -23,500,00
(or shareholders) 0.00 0.00
3．Other
(IV)Internal transferring of
owners’ equity
1. Capitalizing of capital
reserves (or to capital shares)
2. Capitalizing of surplus
reserves (or to capital shares)
3 ． Making up losses by
surplus reserves.
4．Other
(V) Special reserves
60 / 121
2015 Annual Report
1. Provided this year
2．Used this term
（VI）Other
IV. Balance at the end of this 235,000,00 90,801,937 43,536,28 235,743,0 605,081,30
term 0.00 .51 3.35 87.12 7.98
Legal Representative: Zhu Jinming Person in charge of accounting：Lu Lihua Accounting Dept Leader: Ma Li
61 / 121
2015 Annual Report
III.Basic Information of the Company
I.Company profile
1. Enterprise registration address, organization mode and headquarter address.
Huangshi Dongbei Electrical Appliance Co., Ltd. (hereinafter referred to as the "Company" or the
"Company") March 10, 1999 registered in Hubei Province Administration for Industry and Commerce,
on July 15, 1999 are traded on the Shanghai Stock Exchange. Companies registered capital of RMB
235 million, equity amounted to 235 million shares, par value of 1 yuan. Of which 117.60 million
shares of state-owned legal person shares, held by Huangshi Dongbei Electromechanical Group Co.,
Ltd ; 2.4 million for corporate shares, by Changzhou Zhongke Electrical Manufacturing Co., Ltd.,
Changshu Tianyin Electromechanical Co., Ltd., Zhejiang Lisheng Electromechanical Manufacturing
Co., Ltd., Shaoxing Xingbei Pressing Co., Ltd., Wuhan Xinhua Pressing Co., Ltd. five promoters hold;
115 million shares of B shares outstanding.
Registered Address: No.6, Jinshan East Road, Economic & Technology Development Zone, Huangshi
City, Hubei Province.
Unified social credit code : 91420000710920880L
Registered Capital : RMB 235 million
Legal Representative：Zhu Jinming
Business scope: Production and sales of refrigerating compressors and electrical motors of compressors,
development, production and consultation of high-tech products.
2.The nature of the company's business and main business activities.
The company's main business for refrigeration compressors, compressor motor production and sales.
Major customers for refrigerators, freezers and other refrigeration products manufacturer.
3.The financial report to the approval and the approval date of the financial report.
The financial statements have been approved by resolution of the Board of the Company on April 21,
2016. According to the Articles of Association, the financial statements will be submitted to
shareholders for consideration of the General Assembly.
II. Consolidated financial statements
The company will be fully owned subsidiary included in the consolidated financial statements,
including Wuhu Abaur Mechnical & Electrical Co., Ltd., Huangshi Dongbei Foundry Co., Ltd,. Dongbei
Electromechanical (Jiangsu) Co., Ltd., Dongbei(Wuhan) Technology Innovation Co., Ltd., Alashankou
Dongbei Clean Energy Co., Ltd. and Dongbei International Trade Co., Ltd..
IV. Basis for the preparation of financial statements
(1)Basis for the preparation
The preparation of financial statements of the company based on continuous operation.Base on actual
transactions and events occurring, according to the ministry of finance issued “Accounting Standards for
Enterprises - Basic Standards” specific accounting standards, application guidelines of accounting
standards which was promulgated after, accounting standards interpretation and other requirements
(hereafter named “Enterprise Accounting Standard”), based on the significant accounting policies
described below, and will have the preparation to the accounting estimation.
(2) Continuous operation.
The Company since 12 months after the reporting period does not exist on the company's continued viab
ility of significant concern events or circumstances.
V.Significant accounting policies and accounting estimates
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Specific accounting policies and accounting estimates tips:
1.Statement for complying with the accourting standard
The financial statements prepared by the Company comply with the requirements of corporate
accounting standards. They truly and completely reflect the financial situations in
December 31, 2015, operating results, equity changes and cash flow, and other relevant information of
the company in 2015.
2.Fiscal Year
The Company adopts the Gregorian calendar year commencing on January 1 and ending on December
31 as the fiscal year.
3.Operating cycle
The company has a 12 -month operating cycle, and its assets and liabilities as liquidity criteria for the
classification.
4.Standard currency for bookkeeping
The Company takes RMB as the standard currency for bookkeeping.
5.Accounting treatment for corporate merger under the same control or different control
1. corporate merger under the same control
For the merger of enterprises under the same control, if the consideration of the merging is that it
makes payment in cash, transfers non-cash assets or bears its liabilitys, we will, on the date of merger,
regard the share of the book value of the merged party’s net assets in its owner’s consolidated financial
statement as the initial cost of the long-term equity investment. If the consideration of the merging party
is that it issues equity instruments, he total face value of stocks issued will be regarded as the capital
stock. The difference between the initial cost of the long-term equity investment and book value of
consideration (or the face value of stocks issued) shall offset against the capital reserve. If the capital
reserve is insufficient to dilute, the retained earnings shall be adjusted.
2. corporate merger under different control
For the merger under different control, the merger cost is the total fair value of the assets paid,
liability incurred or bored, and equity securities issued by the merging party to acquire the control right
of the merged party on the date of merger. Acquired identifiable asset, liability or contingent assets that
conform to conditions will be calculated by fair value on the date of merger. The balance of the merger
cost over the merged party’s fair value of identifiable net asset usually accounts for the value of
goodwill. If the merger cost is lower than the merged party’s fair value of identifiable net asset, and
remains so after review, the balance accounts for the non-operating revenue.
6.Preparation of consolidated financial statement
1. Scope of consolidated financial statement
We include all subsidiaries (including independent entity under our control) into the scope of
consolidated statement, including enterprises under our control, separable parts of investment recipients
and structure entity.
2.Unify the accounting policies, balance sheet and accounting period of parent company and
subsidiaries.
Subsidiaries and the company adopted accounting policies or be inconsistent in the accounting
period, in preparing Consolidation financial statements, in accordance with the company accounting
policies or has the necessary adjustments to financial statements of the subsidiary during the accounting
period.
3. Offset items in consolidated financial statement
Based on the balance sheet of parent company and subsidiaries, the consolidated financial statement
already offsets internal transaction between the parent company and subsidiaries or between subsidiaries.
The owners’ equity of subsidiaries that does not belong to the share of the parent company, as the equity
of minority shareholders, will be listed as the “Minority Shareholder Equity” under the item “owners’
equity” in the consolidated balance sheet. Long-term equity investment of the parent company held by
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the subsidiary will be regarded as the treasury stock of the business group, and as the deduction item of
owners’ equity, will be listed as “deduction: treasury stock” under the item “owners’ equity” in the
consolidated balance sheet.
4. Accounting treatment of merged subsidiaries
For subsidiary obtained by merger under the same control, it is regarded that the merger already
happens when the final controller begin the real-time control, its asset, liability, record of performance
and cash flow will be included in the consolidated financial statement since the beginning of merger
period; for the subsidiary obtained by merger under different control, when preparing the consolidated
financial statement, individual financial sheets need to be adjusted on the basis of the fair value of
identifiable net asset on the day of merger.
7.Classification of joint arrangements and accounting treatment for joint operation
8. The determination standard in cash and cash equivalents
The cash has been confirmed when the company drew up the cash flow sheet, it referred to the cash can
be used to pay the deposit at any time the cash listed in the cash flow statement refers to the cash in store
and the cash can be obtained at any time. Cash equivalent means the holding period of the company is
short, strong liquidity and low risk of value fluctuation .
9.The foreign currency business and the translation of foreign currency financial statement
（1）The foreign currency translation services
The company with the foreign occurring currency transactions, which used the standard money by
the spot exchange rate on the transaction date to enter an item in an account. The balance sheet date, For
monetary items of foreign currency, the spot exchange rate at the date of balance sheet shall be used in
conversion. The exchange balance due to the difference between the spot exchange rate at the date of
balance sheet and the spot exchange rate at initial confirmation or at the date of previous balance sheet
shall be attributed to the profit and loss of current period, except the exchange balance due to the special
loans of foreign currency meeting the conditions of capitalization shall be attributed to the cost of related
assets based on capitalization during the capitalization.For the non-monetary items of foreign currency
measured with historical cost, still the spot exchange rate at the date of transaction shall be used, and the
amount of recording currency shall not be changed. For the non-monetary items of foreign currency
measured with fair value, the spot exchange rate at the date of the fair value confirmation shall be used
in conversion, the difference between the amount of recording currency after conversion and that of
initial recording currency is made as the change of fair value, which shall be attributed to the profit and
loss of current period or confirmed as other composite income and attributed.
（2）The foreign currency financial statements
The company with the subsidiaries, joint ventures and integrated enterprises and so on, will use the
different functional currency account after the conversion by the foreign currency financial statements,
and will have an accounting practice and an editing to the combined financial statements.
The assets in the balance sheet and liabilities items, by using the spot exchange rate on the balance sheet
date, all equity projects except the item of “Undistributed Profits”, other items were calculated by the
spot exchange rate. With the income and expense items, it was determined by a systematic and rational
approach, and calculated by the approximate exchange rate of the spot exchange rate to convert on the
transaction date. The converting differences generated by the foreign currency financial statements, and
all equity items in the balance sheet are listed separately.The foreign currency cash flows are determined
in accordance with systematical and reasonable way, and calculated by the spot exchange rate on the
approximate exchange rate. The impact of the changing exchange rate to the cash amount, is shown
separately in the cash flow statement .In disposal of overseas operation, the conversion difference of the
foreign currency statements related the overseas operation shall be transferred into the profit and loss of
current period in whole or as per the ratio in disposal of the overseas operation.
10.Financial instruments
（1）The classification of financial instruments and recognition
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The financial instruments classified as financial assets or financial liabilities. The company became a
party in the financial instrument contract; it was recognized as the financial asset or the financial
liability.
The financial assets at the initial recognition are classified as: by measuring at the fair value and its
alternation are reckoned into the financial assets of the profit or loss (included trading financial assets
and the fair value and its alternation are designated into the financial assets of the profit or loss), the
held-to-maturity investment, receivables, and available-for-sale financial assets. Except the receivables
beyond the financial assets classification, which depend on the company and their subsidiaries have the
intention and ability to hold on. Financial asset calculated by fair value and whose change is included in
profit/loss of current period includes the financial asset for short-term sale. Receivable is non-derivative
financial asset that has no quotation in the active market and has recognized or recognizable recovering
amount. Salable financial asset includes non-derivative financial asset defined as salable type when
confirmed initially and financial assets not classified as other types. Held-to-maturity investment refers
to non-derivative financial asset with recognized due date, recognized or recognizable recovering
amount, and of which the management level has clear purpose and capability to hold to the call date.
The financial liabilities at the initial recognition are classified as: by measuring at the fair value and
its alternation are reckoned into the financial liabilities of the profit or loss.
(2)Measurement of financial instruments
The financial assets or financial liabilities are initially recognized as the fair value of the company.
The subsequent measurement shall be disposed by classification: the financial assets measured with fair
value and having its change attributed to the profit and loss of current period, the salable financial assets
and the financial liabilities measured with fair value and having its change attributed to the profit and
loss of current period, Held-to-maturity investment, loan, receivable and other financial liability will be
calculated by amortized cost; equity instrument investment with no quotation in the active market and
whose fair value cannot be reliably measured, and derivative financial assets or liabilities that are
connected with the said equity investment and need to be settled by delivering it, will be calculated by
cost. The profits and losses arising from the change in the fair value of a financial asset or financial
liability shall be dealt with according to the following provisions, unless it is related to hedging: ①The
profits and losses, arising from the change in the fair value of the financial asset or financial liability
which is measured at its fair value and of which the change is recorded into the profits and losses of the
current period, shall be recorded into the profits and losses of the current period; ②The profits and
losses arising from the change in the fair value of a sellable financial asset shall be included into other
consolidated income .
(3)Recognition of the fair value of financial assets and liabilities
For financial instrument with active market, its fair value is recognized by the quotation in the
active market. For financial instrument without active market, its fair value is recognized by the value
appraisal techniques, which mainly includes the market approach, income approach and cost approach.
（4）The confirmation of the transferring in financial assets and measurement
When the ownership of financial assets is transferring almost all of the risks and rewards, neither
transferring nor retaining them, but give up the control of financial assets, and should terminate and
recognize it as financial capital . the financial assets satisfied the termination conditions, it should be
transferred by measuring; it meant the transferring of the book value in financial assets and
consideration received from the transferring, and the balance in the changing amount of fair value which
directly included in capital surplus, then reckoned in the profit and loss.
If the transfer of partial financial asset satisfies the conditions to stop the recognition, the entire
book value of the transferred financial asset shall, between the portion whose recognition has been
stopped and the portion whose recognition has not been stopped, be apportioned according to their
respective relative fair value.
When the existing obligations of the financial liabilities have been fully or partly lifted, it should be
terminated and confirmed the financial liabilities or a part of it.
（5）The impairment of financial assets
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Where a financial asset measured on the basis of post-amortization costs is impaired, an impairment
provision shall be made according to the difference of the book value over current value of the predicted
future cash flow. If there is any objective evidence proving that the value of the said financial asset has
been restored, and it is objectively related to the events that occur after such loss is recognized, the
impairment-related losses as originally recognized shall be reversed and be recorded into the profits and
losses of the current period.
If there is any objective evidence proving that a sellable financial asset is impaired, the
accumulative losses arising from the decrease of the fair value of the shareholder’s equity which was
directly included shall be transferred out and recorded into the impairment losses. For the sellable debt
instruments whose impairment losses have been recognized, if the fair value has risen subsequently and
are related to the subsequent events that occur after the originally impairment losses were recognized,
the originally recognized impairment losses shall be reversed and be recorded into the profits and losses
of the current period. For a sellable equity instrument investment whose impairment losses have been
recognized, if the fair value has risen subsequently, it shall be included directly into the shareholder’s
equity.
For the equity instrument investment, we define the “significant” or “prolonged” decline of fair
value, calculate cost, recognize the final fair value and define steady decline period according to
following standards:
Significant decline of fair value The decline of final fair value against cost reaches or exceeds 50%
Prolonged decline of fair value decline for 12 consecutive months
Total of valuable consideration (deduct announced but not issued
Cost calculation cash dividends or due bond interest that hasn’t been drawn) and
related transaction fee
For financial instrument with active market, its fair value is
recognized by the quotation in the active market. For financial
Recognition of final fair value
instrument without active market, its fair value is recognized by the
value appraisal techniques
Decline continuously or bound range during the decline tendency
Steady decline period sustaining period being lower than 20%, and the bound sustaining
period not exceeding 6 months
11.Account receivables
The receivables of the company mainly include accounts receivable, long-term receivables and other
receivables. If there is an objective evidence in the date of balance sheet of assets and liabilities
indicating such financial assets depreciated, the company shall confirm the depreciation losses according
to the difference between the book value .
(1)Account receivable belong t individual significance and individually assessed for impairment
Judgment criteria or amount standard of material specific The receivable with single amount exceeding RMB 5
amount or amount criterial million (including RMB 5 million) shall be confirmed as
the receivable with significant single amount. The
receivable with single amount exceeding RMB 3 million
(including RMB 3 million) shall be confirmed as the
receivable with significant single amount.
Provision method with material specific amount and The depreciation loss test is conducted separately, and if
provision of specific bad debt preparation an objective evidence indicates depreciation of the
receivable, the company shall confirm the depreciation
losses and appropriate the depreciation provisions
according to the difference by which the current value of
future cash flow is lower than its book value.
(2)Provision for credit risk characteristics portfolio of bad debts:
Credit risk characteristics of the provision for bad debts method (aging analysis, balance percentage
method, other methods)
Aging analysis method Items with significant single amount but no need single
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bad debt provision and items without significant single
amount and big risk
Appropriate provisions for doubtful accounts according to aging analysis method in group
√Applicable □Not applicable
Appropriation Ration of
Appropriation Ratio of
Account Age Other
Receivables (%)
Receivables (%)
Within 1 year（Including 1 year） 2 2
Including：Subitem within 1 year
1－2 years 5 5
2－3 years 30 30
3－4 years 60 60
Over 5 years
Over 4 years 100 100
Appropriate provisions for doubtful accounts according to Percintage analysis method ingroup
□ Applicable √ Not applicable
Appropriate provisions for doubtful accounts according to Other analysis method ingroup
□ Applicable √ Not applicable
(3)Account receivable with non-material specific amount but specific bad debt preparation
Reason for bad debt provision Difficultly recoverable receivables estimated
The depreciation loss test is conducted separately, and if
an objective evidence indicates depreciation of the
receivable, the company shall confirm the depreciation
Method of appropriation of bad debt provision losses and appropriate the depreciation provisions
according to the difference by which the current value of
future cash flow is lower than its book value.
12.Inventories
（1）Category of inventories
Inventories refers to finished goods or merchandise the company holds for sale during its daily operation,
work in process, materials consumed during the process of production or services etc. It mainly include
raw materials, materials for cyclic use, materials for consigned processing, packaging materials,
low-value consumables, work in process, self-made unfinished goods, finished goods (merchandise
inventories) etc.
（2）Accounting for outgoing inventories
Raw materials are accounted for at planned cost, which can be adjusted to be actual cost by reference to
the difference between the monthly actual cost carryforward of materials and the planned cost; work in
process and merchandise inventory are accounted for at actual cost while outgoing merchandise
inventory are accounted for by use of the weighted average method.
（3）Inventory and method of appropriating provisions for inventories write-down
In the date of balance sheet of assets and liabilities, the provision for depreciation of inventories shall be
valuated and appropriated as per the lower between the cost and net realizable value of individual
inventory; but for the inventories big quantity and varieties and lower unit price, appropriated as per the
type of the inventory.The basis for deciding net realizable value: ① the net realizable value of the
finished goods is the balance of estimated selling price reducing by the related tax; ② for the material
held for production, if the net realizable value of the finished goods produced by such material is higher
than cost, the material shall still be measured as per cost; if the dropping of the price of material
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indicates the net realizable value of finished goods is below cost, the net realizable value shall be
decided by the balance of estimated selling price reducing by the estimated cost, estimated selling
expenses and related tax. ③ there is any material to be sold, the net realizable value is the price selling
in the market.
（4）Inventories system
The company implements the perpetual inventories system.
(5) Amortization of low cost and short lived articles and packing
Packaging materials, low-value consumables and other materials for cyclic use are amortized by use of
the one-off amortization method.
13.Asset held for sale
14.Long-term equity investments
1.Determining initial investment cost
The initial investment cost of a long-term equity investment acquired through business combination
under common control is determined at the book value of the acquired equity while in the case of
business combination not under common control the combination costs is taken as the initial investment
cost; The initial investment cost of a long-term equity investment acquired by cash is the paid
purchasing price;For long-term equity investments acquired by issuing equity securities, the initial
investment cost is the fair value of the issued equity securities;Long-term equity investment obtained
through debt restructuring, the initial investment cost shall be in accordance with "Accounting Standards
for Enterprises No. 12 - Debt restructuring" of the relevant provisions;
For investments acquired through exchange of non-monetary assets or debt restructuring, the initial
investment cost is determined in accordance with relevant rules and regulations.
2.Subsequent measurement and recognition of profit and loss
A long-term equity investment of an investing enterprise that is able to control the invested enterprise
should be calculated by the cost approach. The long-term equity investment of associated enterprise and
joint venture enterprises should be calculated by the equity approach. For investing enterprise’s equity
investment to the associated enterprise, if part of it is held indirectly by venture capital institution,
mutual foundation, trust company, investment linked insurance foundation or similar entities, no matter
those entities have significant influence on this part of investment or not, the investing enterprise should
calculate this part of investment by fair value and include its change in the profits and losses according
to Accounting Standards for Enterprises No. 22 Recognition and Measurement of Financial Instruments,
and calculate the rest part of investment by equity approach.
3.Basis for determining common control or significant influence over invested business
Having joint control over invested enterprise indicates that any activity that has significant
influence on the return of a certain arrangement shall not be decided until agreed by parties sharing the
control right, including the selling and buying of goods or labor service, management of financial assets,
purchase and disposal of assets, R&D and financing activities. Significant influence on invested
enterprise refers to holding a voting equity of 20% to 50% of invested enterprise. Or, though the voting
equity accounts less than 20% but one of following conditions is met: have representative in the board of
directors of similar authority of the invested enterprise; participate in the policy formulation of invested
enterprise; assign management personnel for invested enterprise; invested enterprise relies on the
technology or technical material of the investing enterprise; important transaction has been made with
the invested enterprise.
15.Investing real estate
(1)Section I: If using the cost of metering mode:
Depreciation or amortization method
There are several types of the company’s investing real estate: land use rights for lease, buildings for
lease and land use rights held for transfer after value being added.The investing real estate of the
company is measured at cost initially and then by use of the cost model subsequently.
The lease-out buildings among the investing real estate of the company is depreciated by use of the life
averaging method. The detailed accounting policy is the same as that for fixed assets.Depreciation perod
follows：
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Annual depreciation
Residual value rate
Classification Lifetime（years） rate
（%）
(%)
House and Building 40 5 2.375
The investing real estate of the company is measured at cost initially and then by use of the cost model
subsequently.
16.Fixed assets
（1）Recognition conditions
Fixed assets refer to as the tangible assets possessed for producing goods, providing labor, lease or
management with more than one fisical year of service life. Fixed assets are recognized when satisfying
the following conditions.The economic benefits related to such fixed assets can flow into the
enterprise.The cost of such fixed assets can be measured reliably.
(2)Depreciation method
Annual depreciation
Residual value rate
Classification Depreciation method Lifetime（years） rate
（%）
(%)
Houses and 10-20 5 9.5-4.75
buildings
Machinery 5-10 5 19-9.5
equipments
Transportation 4-8 5 23.75-11.88
equipments
Other equipments 3-5 5 31.67－19.00
(3)The financing leased fixed assets recognized basis, pricing and depreciation method
The basis for determining a fixed asset under a financing lease is that all the risks and rewards related to
the ownership of the fixed asset have been transferred substantively in the lease. A fixed asset under a
financing lease is valued initially at the asset’s fair value or the present value of the minimum lease
payment as of the lease commencement date, whichever is lower. It is also the book entry value of the
asset.For subsequent valuation of a fixed asset under a financing lease, depreciation and impairment
provisions are appropriated in accordance with the depreciation policy the same as that for self-owned
fixed assets.
17.Construction in progress
There are two categories of construction in progress in the company: self-operated construction and
subcontracted-out construction. The company converts its construction in progress into fixed assets
when the construction is competed for the intended use. To be eligible for the intended use, the
construction in progress must satisfy one of the following conditions:The physical construction
(including installation) of the fixed asset has been completed or completed substantially;Trial production
or operation has been run and proved that the asset can normally operate or steadily produce qualified
products, or the trial operation results show that the asset can normally work or be open for
business;Expenses on the constructed fixed asset seldom or almost no longer arise;The purchased or
constructed fixed asset has met or substantially matched the design or contract requirements.
18.Borrowing costs
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（1）Recognition criteria for borrowing costs capitalization
The borrowing costs of the company, which can be directly attributed to acquisition, construction or
production of capitalization eligible assets, are capitalized and counted in the cost of the relevant asset
while other borrowing costs are recognized as expenses when incurred and counted in the profit and loss
of a current accounting period. Capitalization eligible assets refer to fixed assets, investing real estate,
inventory etc., which need to attain the intended use or sale through acquisition, construction or
production activities over a long period.
（2）Calculation of capitalized amount
A capitalization period refers to the period from the commencement to the termination of the
capitalization of borrowing costs, which excludes the suspension period of the borrowing costs
capitalization.A capitalization suspension period means that the acquisition, construction or production
is abnormally interrupted for consecutive three months so the capitalization of the borrowing costs
should be suspended.
Calculation of a capitalized amount: for a special borrowing, it is determined at the interest expenses of
the special borrowing arising in a current period less the interest income from the credit line balance
being deposited in a bank or the income from temporary investment of the balance; for the assets using
general borrowings, the capitalized amount is determined by the weighted average excess of the assets’
accumulated expenses over their special borrowings multiplying the capitalization rate of the used
general borrowings while the capitalization rate is determined by calculating the weighted average
interest rate of general borrowings; for a borrowing at a discount or premium, the actual interest rate
method is used to determine amortization for each accounting period and adjust interest amount of each
period.
The actual interest rate method is a method of calculating unextinguished discounts or premiums or
interest expenses at the actual interest rate. The actual interest rate is the rate used to derive the present
book value of the borrowing from discounting of the prospective cash flows arising throughout the
expected duration of the borrowing.
19.Biological assets
20.Oil-gas assets
21. .Intangible assets
1.Measurement of intangible assets, Service life and impairment test
（1）Measurement of intangible assets
The company measures its intangible assets initially at cost. A purchased intangible asset has the actual
paid price and relevant expenses as its actual cost. For the intangible assets contributed by the investors,
the actual cost is the value set by the investment contract or agreement but if the contract or agreement
value is not fair, the actual cost is determined at fair value. The cost of the intangible assets developed in
house is the total expenses incurred to attain the intended use.
Subsequent measurements are performed on intangible assets in the following ways: for an intangible
asset with a finite useful life, the company adopts the straight-line method for its amortization, and the
useful life and the amortization method are reviewed at the end of each fiscal year and will be adjusted
accordingly if they are different from the original estimates. Intangible assets with an indefinite useful
life are not amortized but a review will be conducted so if there are concrete evidences indicating that
the useful life is finite, such assets will have an estimated useful life and be amortized by use of the
straight-line method.
（2）Recognition of an indefinite useful life
The company is unable to foresee the period that an intangible asset can bring the company economic
benefits, or the useful life of the asset is uncertain. Such an asset can be recognized as an intangible asset
with an indefinite useful life.Recognition of an indefinite useful life is based on: contractual rights or
other legal rights but there are no contractual or legal provisions limiting the service life; the fact that it
is impossible to determine the economic life of the intangible asset even when the conditions of the same
industry or relevant experts’ opinions are taken into account.At the end of each year, the indefinite useful
life of an intangible asset is reviewed upward from the level of the department that uses the asset, which
conducts a basic review, to assess whether there are changes in the basis for recognizing an indefinite
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useful life.
2.Internal research and development
The expenses of an in-house R & D project during the research phase are counted in the profit and loss
of a current accounting period when incurred，Those being confirmed in meeting the conditions of the
intangible assets shall be transferred to the accounting of intangible assets.
22. Impairment of long-term assets
Long-term assets like long-term equity investment, investment real estate calculated by cost
approach, fixed assets, project under construction and intangible assets who have impairment on the day
of balance sheet should go through impairment test. If the impairment test result shows that the
recoverable amount of the asset is lower than its book value, impairment provision shall be made
according to the difference and recorded into the impairment losses.
Recoverable amount is the higher one of the net amount of fair value after deducting disposal fee
and the prospective cash flow of asset. Asset impairment provision is calculated and recognized on the
basis of a single asset. If it is difficult to estimate the recoverable amount of a single asset, the
recoverable amount of the asset group which this asset belongs can be calculated. Asset group is the
smallest asset mix that can produce cash inflow independently.
Once the above asset impairment loss is confirmed, the value restored part will not be reversed
thereafter.
23. Amortization method of long-term deferred expenses
The long-term expenses to be amortized of the company refer to all the expenses paid but the benefiting
period of which is over one year (not including one year). They are mainly parking fee, housing
decoration expenses etc. The long-term expenses to be amortized are amortized over the benefiting
period of expense items. For the long-term expenses to be amortized that cannot be benefiting in future
accounting periods, the amortized value of the expense items are all counted in the profit and loss of a
current accounting period.
24. Payroll
(1) Accounting treatment of short-term compensation
During the accounting period of an employee providing services to the company, the short-term
compensation is recognized as liabilities, and included in the profits and losses of the current period,
except that it is required or allowed by the accounting standards to be included in the asset cost. Welfare
expenses for the employees will be included in the profits and losses or related asset cost according to
the actual amount. If the welfare expense is nonmonetary, it will be calculated according to the fair value.
For social insurances like medical insurance, work injury insurance, maternity insurance and housing
accumulation fund paid by the company for employees, as well as labor union expenditure and employee
education expenses drawn according to stipulation, during the accounting period of an employee
providing services to the company, the corresponding employee compensation will be recognized
according to stipulated base and proportion, and corresponding liabilities will be recognized and
included into the profits and losses of current period or related asset cost.
(2) Accounting treatment of the welfare after demission
During the accounting period of an employee providing services to the company, the payable
amount calculated according to Defined Contribution Plan is recognized as the liabilities, and will be
included in the profits and losses of the current period or related asset cost. The formula defined through
prospective accumulated unit-of-welfare approach will regard the welfare obligation produced by
Defined Benefit Plan as the period of employee providing services, and include it into the profits and
losses of the current period or related asset cost.
(3) Accounting treatment of the demission welfare
When the Company provides dismiss welfare for the employee, it should recognize the employee
compensation liabilities produced by dismiss welfare on the earlier of the following two dates: when the
enterprise cannot withdraw the dismiss welfare provided by labor relationship plan or redundancy
proposal; when the enterprise recognizes the cost or fee related to reorganization involving paying
dismiss welfare.
(4) Accounting treatment of the welfare of other long-term staffs
Other long-term employee welfare provided by the Company to employees, if meeting Defined
Contribution Plan conditions, should be treated according to related stipulations of Defined Contribution
Plan. Besides, the net liability or net asset of the other long-term employee welfare should be recognized
71 / 121
2015 Annual Report
and calculated according to related stipulations of Defined Benefit Plan.
25. Estimated liabilities
26. Share-based payment
27. Other financial instruments such as preferred shares and perpetual capital securities
28.Revenue
(1)Sales of Goods
Goods sales revenues are recognized according to the contractual or agreement price received or
receivable from the purchasing party when the Goods the company sells satisfy the following conditions:
① the main risks and rewards of the ownership of Goods have been transferred to the purchasing party;
② the company neither reserves the continuing control right related to the ownership nor exert effective
control over the sold merchandise; ③ the received amount can be measured reliably; ④ the relevant
economic benefits are probable to flow into the company; ⑤ and the relevant costs incurred or to be
incurred can be measured reliably.
The detailed principles for the recognition of revenue from selling goods are: ① the goods have
been delivered by the Company, installed and verified by the purchaser, the amount of revenue is
already confirmed, the payment for goods has been received or is anticipated to be recoverable, and the
cost can be measured reliably; ② the goods have been delivered by the Company, verified, signed and
received by the purchaser, the amount of revenue is already confirmed, the payment for goods has been
or is anticipated to be recoverable, and the cost can be measured reliably; ③ for revenue from exporting
goods, the Company have gone through declaration procedures according to requirements in the contract
signed with client and the order, the amount of revenue is already confirmed, the payment for goods has
been received or is anticipated to be recoverable, and the cost can be measured reliably.
(2)Alienation of asset use rights
The company recognizes the revenues from alienation of asset use rights when the economic benefits
related to the alienation can flow in and the received amount can be measured reliably.
29. Government subsidies
(1) Judgment basis and accounting treatment of government subsidies related to assets
The government subsidies that are obtained by the company used for purchase or construction, or
forming long-term assets by other ways are defined as government subsidies pertinent to assets. The
government subsidies pertinent to assets are recognized as deferred income. Since the day related assets
are available for use, the deferred income will be equally allocated and transferred to profits and losses
of the current period according to the anticipated use period of related assets.
(2) Judgment basis and accounting treatment of government subsidies related to profits
The government subsidies other than those pertinent to assets are recognized as the subsidies pertinent to
income.
Income related governmental subsidies are treated as follows: The subsidies that are used to compensate
relevant expenses or losses of subsequent periods are recognized as deferred income and counted in the
profit and loss of a current period when the company recognizing the relevant expenses. Those used to
compensate incurred relevant expenses or losses are counted in the profit and loss of a current period.
Standards differentiating government subsidies pertinent to assets or to income
If the government document doesn’t clearly specify the object of subsidy, the standard of classifying it
as the subsidy pertinent to assets or to income: ① if the government document specifies that the subsidy
is for a specific program, it should be classified according to the proportion of the expense of assets to be
formed in the budget of this specific program and the expense of calculated fee, the proportion needs to
be reviewed on every balance sheet day and updated if necessary; ② if the government document just
provides general description for the purpose without specifying any specific program, it belongs to the
subsidy pertinent to income.
30. Deferred income tax assets/deferred income tax liabilities
（1）Based on the difference between the book value of assets and liabilities and the taxable base (for
items not recognized as assets or liabilities while their taxable base can be determined in accordance
72 / 121
2015 Annual Report
with the provisions of the tax law, the taxable base is the difference), the company calculates and
recognizes deferred income tax assets or liabilities at the tax rate applicable when it is time to recover
the assets or liquidate the liabilities.
（2）Deferred income tax assets are recognized to the limit of taxable income, which can be achieved
probably and be utilized to offset deductible temporary differences. If there are concrete evidences
indicating that sufficient taxable income can be achieved probably in a future period to offset deductible
temporary differences as of the balance sheet date, then the company will recognize the deferred income
tax asset that were not recognized in a previous period. If not, the company will write down the book
value of deferred income tax assets.
（3）For the deductible temporary differences related to the investments on the subsidiaries and associate
enterprises, deferred income tax liabilities are recognized unless the company can control the reversal
time of the temporary differences and such differences probably will not be reversed in the foreseeable
future. Deferred income tax assets will be recognized for the deductible temporary differences related to
the investments on the subsidiaries and associate enterprises when such differences can be reversed
probably in the foreseeable future and it is probable to achieve taxable income in the future, which can
be utilized to offset the deductible temporary differences.
31. Lease
1.Accounting treatment of operating lease
Payments made under operating leases straight-line basis over the lease term costs related assets or profit
or loss.
2.Accounting treatments of financial lease
The lower of the fair value of leased asset and the current value of lowest lease payment will be
regarded as the entry value of leased assets. The difference between the entry value of the leased assets
and the lowest lease payment will be regarded as the unsettled financing expense and be amortized by
real interest method. The balance of the lowest lease payment deducing unsettled financing expense will
be listed as long-term payables.
32. Other significant accounting policies and estimates
33. Significant change of accounting policies and estimates
(1) Change of accounting policies
□ Applicable √ Not applicable
(2) Change of main accounting estimates
□ Applicable √ Not applicable
34.Other
None
VI. Taxation
1. Main taxes and tax rate
Cagegory of taxes Tax basis Tax rate
VAT By the difference between the output tax 6%、13%、17%
less deductible VAT input provision and
pay
5%
Should be accounted and paid according
Business tax
to 5% of taxable income.
7%
Tax for city maintenance and Should be accounted and paid according
73 / 121
2015 Annual Report
construction: to 7% of the payable current taxes.
15%、25%
Should be accounted and paid according
Enterprise income tax
of payable income tax.
3%
Should be accounted and paid according
Fees for education:
to 3% of payable current taxes.
Notes of the disclosure situation of the taxpaying bodies with different enterprises income tax rate
□ Applicable √ Not applicable
2. Tax preference
(1)VAT
The company exports products to implement value-added tax "exemption, credit, refund" policy, our
products export tax rebate rate of 17%.
(2) Corporate income tax
The company and its subsidiaries Wuhu Abaur Mechanical & Electrical Co.,Ltd.and Huangshi Dongbei
Foundry Co., Ltd.reviewed by the relevant departments, have been identified as high-tech enterprises,
the current corporate income tax rate is 15%.
(3)Other
Wholly owned subsidiary of Dongbei International Trade Co., Ltd. registered in the British Virgin
Islands, no tax liability.
VII. Notes on major items in consolidated financial statements
1. Monetary funds
In RMB
Items Closing balance Opening balance
Cash on hand 10,570.37 2,316.67
Bank deposit 374,053,584.61 289,246,889.74
Other monetary funds 282,048,851.15 364,608,716.05
Total 656,113,006.13 653,857,922.46
Indluding：The total amount 9,055,365.20 8,948,245.09
of deposit abroad
2. Financial assets measured by fair value and the changes be included in the current gains and losses
□ Applicable √ Not applicable
3. Derivative financial assets
□ Applicable √ Not applicable
4.Bill receivable
(1) Bill receivable listed by category
√Applicable□Not applicable
In RMB
Items Closing balance Opening balance
Bank acceptance bill 574,409,601.27 730,254,692.40
Trade acceptance bill 14,674,000.00 110,338,654.57
Total 589,083,601.27 840,593,346.97
(2) Notes receivable pledged by the Company at the period-end
74 / 121
2015 Annual Report
√Applicable□Not applicable
In RMB
Items Amount
Bank acceptance bill 3,838,000
Trade acceptance bill
Total 3,838,000
(3) Notes receivable which had endorsed by the Company or had discounted and had not due on the
balance sheet date at the period-end
√Applicable□Not applicable
In RMB
Items Amount of recognition Amount of not terminated
termination at the period-end recognition at the period-end
Bank acceptance bill 54,731.86
Trade acceptance bill
Total 54,731.86
(4) Notes transferred to accounts receivable because drawer of the notes fails to executed the contract or
agreement
□ Applicable √ Not applicable
5. Accounts receivable
(1) Accounts receivable disclosed by category
In RMB
Closing balance Opening balance
Classification Book Balance Bad debt provision Book Balance Bad debt provision
Book Book
Amount Proporti Amount Proportio value Amount Proportio Amount Proportio value
on(%) n(%) n(%) n(%)
Accounts
receivable of
individual
significance and
subject to
individual
impairment
assessment
Accounts 925,556, 100.00 30,718,9 3.32 846,483, 100.00 28,893,0 3.41
receivable 531.27 57.23 617.99 54.03
subjecttoimpair
ment
assessment by
credit risk
characteristics
of a portfolio
Accounts
receivable of
individual
insignificance but
subject ot
individual
impairment
assessment
925,556, / 30,718,9 / 846,483, / 28,893,0 /
Total
531.27 57.23 617.99 54.03
75 / 121
2015 Annual Report
Accounts receivable with significant single amount for which bad debt provision separately accrued at
the period-end
□ Applicable √ Not applicable
In the groups, accounts receivable adopting aging analysis method to accrue bad debt provision:
√Applicable□Not applicable
In RMB
Closing balance
Aging
Account receivable Bad debt provision Withdrawal proportion
Subtotal within 1 year 910,642,707.53 18,212,691.46 2
1-2 years 1,105,127.06 55,256.35 5
2-3 years 1,939,553.23 581,865.97 30
3-4 years 60
Over 4 years 11,869,143.45 11,869,143.45 100
Total 925,556,531.27 30,718,957.23
Notes：
Items with significant single amount but no need single bad debt provision and items without significant
single amount and big risk
In the groups, accounts receivable adopting other methods to accrue bad debt provision:
□ Applicable √ Not applicable
(2)Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debt provision during the reporting period was of RMB1,825,903.20;
the amount of the reversed or collected part during the reporting period was of RMB 000.
Of which the significant amount of the reversed or collected part during the reporting period was:
√Applicable□Not applicable
(3) The actual write-off accounts receivable
□ Applicable √ Not applicable
(4) Top 5 of the closing balance of the accounts receivable colleted according to the arrears party
Name Closing Proportion (%) Bad debt prosion
balance
1.Client 1 159,624,217.35 17.25 3,192,484.35
2.Client 2 54,140,813.91 5.85 1,082,816.28
3.Client 3 49,337,189.54 5.33 986,743.79
4.Client 4 39,377,937.80 4.25 787,558.76
5.Client 5 33,738,555.45 3.65 674,771.11
Total 336,218,714.05 36.33 6,724,374.28
(5) Account receivable which terminate the recognition owning to the transfer of the financial assets：
(6) The amount of the assets and liabilities formed by the transfer and the continues involvement of
accounts receivable
6. Prepayment
(1) List by aging analysis:
In RMB
Aging Closing balance Opening balance
76 / 121
2015 Annual Report
Amount Proportion(%) Amount Proportion(%)
Within 1 year 83,649,059.69 68.91 132,231,949.55 95.71
1-2 years 35,727,257.05 29.43 5,412,335.25 3.92
2-3 years 1,956,513.67 1.61 280,000.00 0.20
Over 3 years 60,118.03 0.05 240,118.03 0.17
Total 121,392,948.44 100.00 138,164,402.83 100.00
Notes of the reasons of the prepayment ages over 1 year with significant amount but failed settled in
time:
Closing Reason for not
Creditor unit Debt unit Aging
balance settle
Huangshi Dongbei
Sumeida International
Electromechanical (Jiangsu) 11,422,995.83 1-2 years Under Fulfillment
Technology Trade Co., Ltd.
Co., Ltd.
Huangshi Dongbei Electrical Huangshi Times Real estate
9,603,100.00 1-2 years Under Fulfillment
Appliance Co., Ltd. Development Co., Ltd.
Total 21,026,095.83
(2) Top 5 of the closing balance of the prepayment colleted according to the prepayment target
Name Closing balance Proportion(%)
1.Suqian Finance Bureau of Economic
11,486,304.00 9.46
& Technology Development Zone
2. Sumeida International Technology
11,422,995.83 9.41
Trade Co., Ltd.
3.Huangshi Times Real estate
9,603,100.00 7.91
Development Co., Ltd.
4.. Huangshi Dongbei
9,315,761.10 7.67
Electromechanical Group Co., Ltd.
5.Nanchang Sanfeng Automation Co.,
6,491,090.00 5.35
Ltd.
Total 48,319,250.93 39.80
7. Interest receivable
□ Applicable √ Not applicable
8. Dividend receivable
√Applicable□Not applicable
(1) Dividend receivable
In RMB
Items(Or investees) Closing balance Opening balance
Huangshi Dongbei Electromechanical 27,395,464.63 27,395,464.63
Group Solar Energy Co., Ltd. Dividend
Total 27,395,464.63 27,395,464.63
(2) Significant dividend receivable aged over 1 year
√Applicable□Not applicable
In RMB
Items(or investees) Closing balance Aging Reason Whether occurred
impairment and its
judgment basis
77 / 121
2015 Annual Report
Huangshi Dongbei 27,395,464.63 1-2 years No
Electromechanical Group
Solar Energy Co., Ltd.
Total 27,395,464.63 / / /
9. Other accounts receivable
(1) Other accounts receivable disclosed by category
In RMB
Closing balance Opening balance
Category Bad debt
Book Balance Book Balance Bad debt provision
provision Book Book
Amount Proport Amount Proport value Amount Proporti Amount Proport value
ion(%) ion(%) on(%) ion(%)
Other
accounts
receivable of
individual
significance
and subject
to individual
impairment
assessment
Other 9,733,579.48 100.00 428,710.69 4.40 19,102,883.8 78.48 1,559,330 8.16
accounts 8
receivable
.32
subjecttoi
mpairmen
t
assessmen
t by credit
risk
characteri
stics of a
portfolio
Other 5,238,79 21.52
accounts
receivable of
9.47
individual
insignificanc
e but subject
ot individual
impairment
assessment
Total 9,733,579.48 / 428,710.69 / 24,341,683.3 / 1,559,330.32 /
5
Other accounts receivable with significant single amount for which bad debt provision separately
accrued at the period-end
□ Applicable √ Not applicable
In the groups, other accounts receivable adopting aging analysis method to accrue bad debt provision:
√Applicable□Not applicable
In RMB
Closing balance
Withdrawal
Aging Other account receivable Bad debt provision
proportion(%)
Withn 1 year
78 / 121
2015 Annual Report
Incluidng：Subitem withn 1 year
Subtotal within 1 year 2,765,445.53 79,354.00 2
1-2 years 6,967,133.95 348,356.69 5
2-3 years 30
Over 3 years
3-4 years 60
Over 4 years 1,000.00 1,000.00 100
4-5 years
Over 5 years
Total 9,733,579.48 428,710.69
In the groups, other accounts receivable adopting balance percentage method to withdraw bad debt
provision
□ Applicable √ Not applicable
In the groups, other accounts receivable adopting other methods to accrue bad debt provision:
□ Applicable √ Not applicable
(2)Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debt provision during the reporting period was of RMB 0；the amount
of the reversed or collected part during the reporting period was of RMB 1,121,643.59.
Of which the significant amount of the reversed or collected part during the reporting period was of
RMB 000:
□ Applicable √ Not applicable
(3) The actual write-off other accounts receivable
□ Applicable √ Not applicable
(4) Other accounts receivable classified by the nature of accounts
√Applicable□Not applicable
In RMB
Nature Closing book balance Pening book balance
Petty cash 1,150,382.33 1,202,831.99
Deposit 7,181,787.71 7,498,823.60
Export rebates recei vable 790,836.12 5,904,874.48
Other current account 610,573.32 9,735,153.28
Total 9,733,579.48 24,341,683.35
(5) Top 5 of the closing balance of the other accounts receivable colleted according to the arrears party
√Applicable□Not applicable
In RMB
Proportion of the total
Closing Closing balance of
Name Nature Aging year end balance of the
balance bad debts provision
accounts receivable(%)
1. Shanghai Far Deposit 6,428,570.00 1-2 years 66.05 321,428.50
Eastern
International
Leasing Co., Ltd.
2. Export rebates Export tax 790,836.12 Within 1 year 8.12 15,816.72
recei vable reimburserment
3. Wuhu Zhongran Deposit 488,650.00 Within 1 year 5.02 9,773.00
City Development
Co., Ltd.
79 / 121
2015 Annual Report
4.Technology Petty cash 300,000.00 Within 1 year 3.08 6,000.00
Development Dept
5.Beijing Current account 141,000.00 Within 1 year 1.45 2,820.00
Lanyutianhong
Technology Co.,
Ltd.
Total / 8,149,056.12 / 83.72 355,838.22
(6) Accounts receivable involved with government subsidies
□ Applicable √ Not applicable
(7) Other account receivable which terminate the recognition owning to the transfer of the financial
assets
(8) The amount of the assets and liabilities formed by the transfer and the continues involvement of
other accounts receivable
10.Inventories
（1）Inventories types
In RMB
Closing balance Opening balance
Items Book balance Provision for Book value Book balance Provision for Book value
bad debts bad debts
Raw materials 38,845,070.54 38,845,070.54 32,906,403.42 32,906,403.42
Processing 171,977,417.36 171,977,417.36 169,715,083.03 169,715,083.03
products
Stock goods 196,425,469.27 196,425,469.27 229,626,060.37 229,626,060.37
Turnover materials
Consumptive
biological
assets
Construction cont
ract has been com
pleted unsettled a
ssets
Total 407,247,957.17 407,247,957.17 432,247,546.82 432,247,546.82
(2) Notes of the closing balance of the inventory which includes capitalized borrowing expense
(3) Completed unsettled assets formed from the construction contact at the period-end
□ Applicable √ Not applicable
11. Assets divided as held-to-sold
□ Applicable √ Not applicable
12. Non-current assets due within 1 year
13. Other current assets
In RMB
Items Closing balance Opening balance
VAT input tax 86,403,299.73 37,504,806.36
80 / 121
2015 Annual Report
Total l 86,403,299.73 37,504,806.36
14. Available-for-sale financial assets
□ Applicable √ Not applicable
15. Investment held-to-maturity
□ Applicable √ Not applicable
16. Long-term accounts receivable
□ Applicable √ Not applicable
17.Long-term equity investment
√ Applicable □ Not applicable
In RMB
Increase/decrease
Gains Adjust Closin
and ment Cash g
Withdr
Openin losses of bonus balanc
Redu Ching awal of Closin
g Add recogni other or e of
Investee ced es of impair g
balanc invest
invest
zed compr
other
profits
ment
Other balance
impair
e ment under ehensi announ ment
ment eqiuty provisi
the ve ced to provisi
on
equity incom issue on
method e
I. Joint
venture
s
Subtotal
II.
Associa
ted
enterpri
ses
Huangs 1,341,3 3,105,4 4,446,7
hi Aibo 01.99 49.39 51.38
Propert
y
Co.,Ltd.
Hubei 4,008,4 -1,426, 2,582,1
Jinling 68.72 301.56 67.16
Precisio
n
Agricult
ure Co.,
Ltd.
Subtotal 5,349,7 1,679,1 7,028,9
70.71 47.83 18.54
5,349,7 1,679,1 7,028,9
Total
70.71 47.83 18.54
18. Investment property
√ Applicable □ Not applicable
Measurement model of investment real estate
(1) Investment property adopted the cost measurement mode
In RMB
81 / 121
2015 Annual Report
Items Houses and Land use right Construction in
Total
building progress
I.Originalbookvalue
1. Year-beginning balance 6,934,630.00 6,934,630.00
2. Increased at this period
(1)Outsourcing
(2)Inventory /Fixed assets/ project
under construction
(3)The merger of enterprises
increase
3. Decrease at this period
(1)Disposition
(2)Other Out
4.Closing balance 6,934,630.00 6,934,630.00
II.Total accumulated depreciation
accumulated amortization
1. Year-beginning balance 3,222,794.24 3,222,794.24
2. Increased at this period 165,044.16 165,044.16
(1) Withdrawal 165,044.16 165,044.16
3. Decrease at this period
(1)Disposition
(2)Other Out
4. Year-end balance 3,387,838.40 3,387,838.40
III. Impairment allowance
1. Year-beginning balance
2. Increased at this period
(1) Withdrawal
3. Decrease at this period
(1)Disposition
(2)Outsourcing
4. Year-end balance
IV.Book value
1. Closing book value 3,546,791.60 3,546,791.60
2. Book value at year beginning 3,711,835.76 3,711,835.76
(2) Details of investment property failed to accomplish certification of property
82 / 121
2015 Annual Report
□ Applicable √ Not applicable
19. Fixed assets
(1) List of fixed assets
In RMB
Items House and Machinery Transporation Other equipment Total
building equipment eqiupment
I.Originalbookvalue
1. Year-beginning balance 479,623,376.57 929,612,150.51 24,286,309.83 25,724,952.29 1,459,246,789.20
2. Increased at this period 108,378,246.23 643,014,077.93 1,254,107.84 15,910,664.45 768,557,096.45
（1）Purchase 275,616.11 115,128,106.46 1,254,107.84 15,832,459.32 132,490,289.73
（2）Transferred from
construction in -progress 108,102,630.12 527,885,971.47 78,205.13 636,066,806.72
The merger of enterprises
increase
3. Decreased at this period 35,051,617.84 474,209.32 354,376.44 35,880,203.60
（1）Disposal or scrap 35,051,617.84 474,209.32 354,376.44 35,880,203.60
4 Year-end balance 588,001,622.80 1,537,574,610.60 25,066,208.35 41,281,240.30 2,191,923,682.05
II. Accumulated depreciation
1. Year-beginning balance 123,983,267.24 432,306,975.20 20,495,252.94 19,867,410.95 596,652,906.33
2. Increased at this period 24,650,821.51 87,520,925.04 1,322,909.39 5,714,242.94 119,208,898.88
(1) Withdrawal 24,650,821.51 87,520,925.04 1,322,909.39 5,714,242.94 119,208,898.88
3.Decreased at tthis period 19,467,371.09 413,587.72 337,312.50 20,218,271.31
（1）Disposal or scrap 19,467,371.09 413,587.72 337,312.50 20,218,271.31
4. Year-end balance 148,634,088.75 500,360,529.15 21,404,574.61 25,244,341.39 695,643,533.90
III. Impairment allowance
1. Year-beginning balance
2. Increased at this period
(1) Withdrawal
3. Decreased at this period
（1）Disposal or scrap
4. Year-end balance
IV.Book value
1. Closing book value 439,367,534.05 1,037,214,081.45 3,661,633.74 16,036,898.91 1,496,280,148.15
2. Book value at year
beginning 355,640,109.33 497,305,175.31 3,791,056.89 5,857,541.34 862,593,882.87
(2) List of temporarily idle fixed assets
□ Applicable √ Not applicable
(3) Fixed assets leased in from financing lease
□ Applicable √ Not applicable
(4) Fixed assets leased out from operation lease
83 / 121
2015 Annual Report
□ Applicable √ Not applicable
(5) Details of fixed assets failed to accomplish certification of property
□ Applicable √ Not applicable
Other notes：
20. Construction in progress
√Applicable□Not applicable
(1) List of construction in progress
In RMB
Balance in year-end Balance in year-begin
Items Bad debt Book Value Bad debt Book Value
Book balance Book balance
povision povision
Equipment installation 1,912,592.32 1,912,592.32 1,639,042.30 1,639,042.30
The Phase III project of 22,410,618.22 22,410,618.22 17,401,445.29 17,401,445.29
Huangjianshan
ERP software installation project 882,497.11 882,497.11
Alashankou plant and supporting 4,722,513.10 4,722,513.10 110,860,006.80 110,860,006.80
facilities projects
Energy efficient commercial 33,717,629.66 33,717,629.66
production line installation
Jiangsu Suqian Industrial Park I 49,772,154.37 49,772,154.37
phase construction project
Dongbei (Wuhan) office 6,349,068.26 6,349,068.26
building renovation project
Lijiafang relocation project 4,190,683.77 4,190,683.77
Total 33,236,407.41 33,236,407.41 220,621,843.79 220,621,843.79
(2) Changes of significant construction in progress
√Applicable□Not applicable
In RMB
Inclu
ding：
Capitali Curre
Capita
sation nt lizatio Sour
Balan
Amount at Transferred Progres of amou n rate ces
Budg Increase at Other ce in Proport
Name year to fixed s of interest nt of
et this period decrease year-e ion(%) of of
beginning assets work accumu capita
nd interes funds
lated lizatio
t(%)
balance n of
intere
st
The Phase 17,401,445. 5,009,172.9 22,41 Self
III project 29 3 0,618.
of 22
Huangjia
nshan
Energy 33,717,629. 7,602,106.1 41,319,735. Self
efficient 66 7 83
commerci
al
productio
n line
installatio
n
84 / 121
2015 Annual Report
Dongbei 6,349,068.2 490,088.36 5,362,553.0 1,476,603. Self
(Wuhan) 6 0 62
office
building
renovatio
n project
Jiangsu 49,772,154. 36,455,231. 86,227,385. Self
Suqian 37 37 74
Industrial
Park one
constructi
on project
Alashank 110,860,00 378,477,95 469,206,83 15,408,60 4,722, Self
ou plant 6.80 2.76 9.96 6.50 513.1
and 0
supportin
g
facilities
projects
218,100,30 428,034,55 602,116,51 16,885,21 27,13 / / / /
Total 4.38 1.59 4.53 0.12 3,131.
32
(3) List of the withdrawal of the impairment provision of the construction in progress
□ Applicable √ Not applicable
Other notes
21. Engineering material
□ Applicable √ Not applicable
22. Liquidation of fixed assets
□ Applicable √ Not applicable
23. Productive biological assets
□ Applicable √ Not applicable
24. Oil and gas assets
□ Applicable √ Not applicable
25.Intangible assets
（1）List of intangible assets
In RMB
Land use Non-patent
Items Patent Software Total
right Technology
I. Original price
1.Opening balance 82,307,510.92 2,345,542.30 84,653,053.22
2.Increased amount 22,114,990.06 2,416,166.77 24,531,156.83
ofthe period
2,416,166.77 2,416,166.77
(1) Purchase
85 / 121
2015 Annual Report
(2)Internal
Development
(3)Increased of
Enterprise Combination
(4) Transfer to 22,114,990.06 22,114,990.06
construction project
3.Decreased amount of
the period
(1)Disposition
4. Closing balance 104,422,500.98 4,761,709.07 109,184,210.05
II.Accumulated
amortization
1. Balance in year-begin 11,005,557.83 1,214,742.61 12,220,300.44
2.Increased amount of 2,301,720.49 684,881.23 2,986,601.72
the period
(1)Withdrawal 2,301,720.49 684,881.23 2,986,601.72
3. Decreased amount of
the period
(1) Disposition
4. Closing balance 13,307,278.32 1,899,623.84 15,206,902.16
III. Provision for
impairment
1. Balance in year-begin
2.Increased amount of
the period
(1)Withdrawal
3. Decreased amount of
the period
(1) Disposition
4. Closing balance
IV. Book value
1. Book value of the 91,115,222.67 2,862,085.22 93,977,307.89
period-end
2. Book value of the 71,301,953.09 1,130,799.69 72,432,752.78
period-begin
(2) Details of fixed assets failed to accomplish certification of land use right
□Applicable√Not applicable
Other notes：
26. R&D expenses
□Applicable√Not applicable
27. Goodwill
86 / 121
2015 Annual Report
□Applicable√Not applicable
28. Long-term unamortized expenses
√Applicable□Not applicable
In RMB
Items Opening Increase Amortization Decrease Closing balance
balance amount
Afforestation 6,765,793.26 1,692,165.63 1,889,618.06 6,568,340.83
fees
Decoration fees 960,948.90 3,603,776.06 343,285.79 4,221,439.17
Total 7,726,742.16 5,295,941.69 2,232,903.85 10,789,780.00
29. Deferred income tax assets/deferred income tax liabilities
(1) Deferred income tax assets had not been off-set
√Applicable□Not applicable
In RMB
Closing balance Opening balance
Deductible Deferred income Deductible Deferred income
Items
temporary tax assets temporary tax assets
difference difference
Assets impairment 29,971,844.52 4,495,776.68 30,452,384.35 4,512,676.03
provision
Insider trading unrealized
profit
Deductible loss
Total 29,971,844.52 4,495,776.68 30,452,384.35 4,512,676.03
(2) Deferred income tax liabilities had not been off-set
□Applicable√Not applicable
(3) Deferred income tax assets or liabilities listed by net amount after off-set
□Applicable√Not applicable
(4) List of unrecognized deferred income tax assets
√Applicable□Not applicable
In RMB
Items Year-end balance
Year-beginning balance
Deductible temporary difference 1,175,823.40
Deductible losses 9,916,250.70 2,416,800.78
Total 11,092,074.10 2,416,800.78
(5) Deductible losses of unrecognized deferred income tax assets will due the following years
√Applicable□Not applicable
In RMB
Notes
Year Year-end balance
Year-beginning balance
2019 2,416,800.78
2020 7,499,449.92 2,416,800.78
87 / 121
2015 Annual Report
Total 9,916,250.70 2,416,800.78 /
30. Other non-current assets
31. Short-term loans
√Applicable□Not applicable
(1) Category of short-term loans
In RMB
Items Closing balance Opening balance
110,142,000.00
Impawn loan
Mortgage loan
611,692,080.00 648,486,180.00
Guaranteed loan
18,000,000.00 20,000,000.00
Credit loan
Total 629,692,080.00 778,628,180.00
(2) List of the short-term loans overdue but not return
□Applicable√Not applicable
Other notes
32. Financial liabilities measured by fair value and the changes included in the current gains and losses
□Applicable√Not applicable
33. Derivative financial liabilities
□Applicable√Not applicable
34.Bill payable
√Applicable□Not applicable
In RMB
Items Closing balance Opening balance
Trade acceptance 10,000,000.00 8,130,000.00
Bank acceptance 1,097,083,483.84 1,049,381,876.03
Total 1,107,083,483.84 1,057,511,876.03
35. Accounts payable
(1) List of accounts payable
√Applicable□Not applicable
In RMB
Items Closing balance Opening balance
Within 1 year（Including 1 year） 713,816,589.93 649,801,774.90
Over 1 year 31,204,616.88 65,342,000.95
Total 745,021,206.81 715,143,775.85
(2) Notes of the accounts payable aging over one year
□Applicable√Not applicable
36. Advance from customers
(1) List of advance from customers
√Applicable□Not applicable
88 / 121
2015 Annual Report
In RMB
Items Closing balance Opening balance
Within 1 year（Including 1 year） 17,623,716.91 13,836,470.62
Over 1 year 248,926.86
Total 17,623,716.91 14,085,397.48
(2) Significant advance from customers aging over one year
□Applicable√Not applicable
(3) Particulars of settled but unfinished projects formed by construction contract at period-end.
□Applicable√Not applicable
37. Payroll payable
(1) List of Payroll payable
√Applicable□Not applicable
In RMB
Items
Year-beginning Increase in the Decrease in the Year-end
balance current period current period balance
I. Short-term salary 26,745,392.85 288,792,125.90 292,241,556.61 23,295,962.14
II. Post-employment benefits 27,816,484.70 27,816,484.70
III. Termination benefits 28,000.00 28,000.00
IV.Other welfare within 1 year
Total 26,745,392.85 316,636,610.60 320,086,041.31 23,295,962.14
(2) List of Short-term salary
√Applicable□Not applicable
In RMB
Balance in Increase at this Decrease at this Balance in
Items
year-begin period period year-end
1.Wages, bonuses, allowances 20,968,227.55 233,054,277.87 234,552,552.57 19,469,952.85
and subsidies
2.Employee welfare 27,626,319.36 27,626,319.36
3. Social insurance premiums 15,154,835.65 15,154,835.65
Including：Medical insurance 10,675,868.84 10,675,868.84
Work injury insurance 3,003,927.94 3,003,927.94
Maternity insurance 1,475,038.87 1,475,038.87
4. Public reserves for housing 10,662,112.49 10,662,112.49
5.Union funds and staff 5,777,165.30 2,294,580.53 4,245,736.54 3,826,009.29
education fee
6. Short-term paid absences
7.Short-term profit-sharing plan
Total 26,745,392.85 288,792,125.90 292,241,556.61 23,295,962.14
(3) List of drawing scheme
√Applicable□Not applicable
In RMB
Items
Year-beginning Increase in the Decrease in the Year-end
balance current period current period balance
89 / 121
2015 Annual Report
1. Basic old-age insurance 25,887,042.70 25,887,042.70
premiums
2.Unemployment insurance 1,929,442.00 1,929,442.00
3. Annuity payment
Total 27,816,484.70 27,816,484.70
38. Taxes payable
In RMB
Items Year-end balance
Year-beginning balance
VAT
Consumption tax
Business tax 228,607.38 168,008.12
Enterprises income tax 20,426,065.63 20,720,493.02
Personal income tax 435,412.79 522,854.59
Urban maintenance and construction 1,480,005.47 966,114.47
tax
Property tax 1,739,576.96 1,522,785.37
Land use tax 850,119.97 721,712.00
Education surcharge 497,786.31 275,253.68
Other 955,324.82 823,913.94
Total 26,612,899.33 25,721,135.19
39. Interest payable
√Applicable□Not applicable
In RMB
Items Year-end balance
Year-beginning balance
Installments of long-term interest-bearing 524,027.78
loan interest and Interest on short-term
loans payable principal at maturity
Corporate bond interest
Interest on short-term loans payable 4,802,144.11
The preference shares are classified as
financial liabilities \ perpetual debt interest
Total 5,326,171.89
Particulars of significant overdue unpaid interest:
□Applicable√Not applicable
Other notes：
40. Dividends payable
√Applicable□Not applicable
In RMB
Items Closing balance Opening balance
Common stock dividends 10,009,121.12 10,009,121.12
Preference shares classified as equity
instruments \ perpetual debt dividend
90 / 121
2015 Annual Report
Total 10,009,121.12 10,009,121.12
Note: Including significant unpaid dividends payable over one year, the unpaid reason shall be
disclosed:
41. Other accounts payable
(1) Other accounts payable listed by nature of the account
√Applicable□Not applicable
In RMB
Items Closing balance Opening balance
Unit account 82,075,309.37 91,219,708.94
Petty cash 102,544.96 1,394,333.51
Deposit 223,631.10 404,481.26
Provisional account payable 66,093,550.48 112,736,470.15
Total 148,495,035.91 205,754,993.86
(2) Other significant accounts payable with aging over one year
□Applicable√Not applicable
Other notes
42. Liabilities classified as holding for sale
□Applicable√Not applicable
43. Non-current liabilities due within 1 year
□Applicable√Not applicable
44. Other current-liabilities
In RMB
Items Closing balance Opening balance
Short-term bonds payable
Total
Changes on short term bonds payable:
□Applicable√Not applicable
45. Long-term loan
√Applicable□Not applicable
(1) Category of long-term loan
In RMB
Items Closing balance Opening balance
Pledge loan
Mortgage loan 350,000,000.00 120,000,000.00
Guarantee loan
Credit loan 5,000,000.00
Entrusted loan 1,440,000.00 1,440,000.00
Total 356,440,000.00 121,440,000.00
46. Bonds payable
□Applicable√Not applicable
91 / 121
2015 Annual Report
47. Long-term payable
√Applicable□Not applicable
(1) Long-term payable listed by nature of the account
In RMB
Items Opening balance Closing balance
Money should be paid to Yuandong 30,373,108.31 42,636,983.48
International Leasing Limited
Total 30,373,108.31 42,636,983.48
48. Long term payroll payable
□Applicable√Not applicable
49. Special payable
□Applicable√Not applicable
50. Accrued liabilities
□Applicable√Not applicable
51. Deferred income
√Applicable□Not applicable
In RMB
Opening Formation
Items Increase Decrease Closing balance
balance reasons
Government subsidies
Refrigeration compressor industrial 4,302,291.67 267,500.00 4,034,791.67 Related to assets
transformation of special funds
Major special funds 3,618,750.00 225,000.00 3,393,750.00 Related to assets
Compressor industrial projects 14,816,666.67 987,589.13 13,829,077.54 Related to assets
Huangshi City, construction of 621,000.00 37,401.87 583,598.13 Related to assets
affordable housing subsidies
Daye Luo bridge new plant 1,011,713.33 104,660.00 907,053.33 Related to assets
construction subsidies
Technology projects subsidies 6,300,000.00 700,000.00 5,600,000.00 Related to assets
Receive the subsidy of the industry 10,740,000.00 10,740,000.00 Related to assets
transformation and upgrading
project
land compensation fee 3,164,000.00 42,188.00 3,121,812.00 Related to assets
The special funds of Special Power 3,000,000.00 3,000,000.00 Related to assets
Supply Line Construction Period III
The subsidy of financial 16,970,000.0 4,000,000.0 12,970,000.00 Related to assets
infrastructure
The Subsidy funds for machinery 50,000,000.00 81,725.30 49,918,274.70 Related to assets
and equipment
Total 30,670,421.67 83,874,000.00 6,446,064.30 108,098,357.37 /
52. Other non-current liabilities
53. Share capital
In RMB
Balance in Changed（+，-） Balance in
92 / 121
2015 Annual Report
year-begin year-end
Issuance
Bonus Capitalization
of new Other Subtotal
shares of public
share
reserve
Total of 235,000,000.00 235,000,000.00
capital
shares
54. Other equity instruments
□Applicable√Not applicable
55. Capital reserves
In RMB
Items Opening balance Increase Decrease Closing balance
Capital premium 180,001,555.45 180,001,555.45
Other capital reserves 10,110,280.81 10,110,280.81
Total 190,111,836.26 190,111,836.26
56. Treasury stock
□Applicable√Not applicable
57. Other comprehensive income
√Applicable□Not applicable
In RMB
Occurred current term
Less：
Accounte
d as other
Amount
gains Less： Attributabl Attributabl
occurred
Beginning previousl Income e to the e to End of
Items before
y but tax parent minority term
of term
income
transferre expense Company shareholder
tax of the
d to s after tax s after tax
period
gain/loss
this
period
1.Other comprehensive
income that will not be
reclassified subsequently
to profit or loss
Indluding ： Change as a
result of
remeasurement of the
net defined benefit
plan liability or asset
Share of other
93 / 121
2015 Annual Report
comprehensive income of
the investee underthe
equity method that will
not be reclassified to
profit or loss
II. Other Comprehensive 168,961.0 357,058.6 357,058.64 526,019.6
income that will be 3 4 7
reclassified subsequently
to profit or loss
Indluding：Share of other
comprehensive income of
the investee under the
equity method that w8ill
be reclassified to profit or
loss
Gains or losses on
changes in fair value of
available-for-sale
financial assets
Gains or losses on
reclassification of
held-to-maturityinvestmen
ts to available-for –sale
financial assets
Effective portion of gains
or losses on cash flow
hedges
168,961.0 357,058.6 357,058.64 526,019.6
Translation differences of 3 4 7
financial statements
denominated in foreign
currencies
Total of other 168,961.0 357,058.6 357,058.64 526,019.6
comprehensive income 3 4 7
58. Special reserves
□Applicable√Not applicable
59. Surplus reserves
In RMB
94 / 121
2015 Annual Report
Items Opening balance Increase Decrease Closing balance
Statutory surplus 43,536,283.35 2,349,281.23 45,885,564.58
reserves
Discretional surplus
reserves
Reserve funds
Enterprise
development funds
Other
Total 43,536,283.35 2,349,281.23 45,885,564.58
60.Retained profits
In RMB
Items Amount of this period Amount of last period
464,995,647.55 434,569,646.73
Before adjustment: Retained profits at the end
of priodyear
Adjustment: Total retained profits at the
beginning of year
464,995,647.55 434,569,646.73
After adjustment: Retained profits at the
beginning of year
69,792,841.69 59,518,090.82
Add：Net profit attributable to shareholders of
the parent Company for the period
2,349,281.23 5,592,090.00
Less ： Appropriation to statutory surplus
reserve
Appropriation to discretionary surplus reserve
Appropriation to general risk reserve
23,500,000.00
Ordinary shares’ dividends payable
Ordinary shares’ dividends converted into
share capital
Retained profits at the end of the period 532,439,208.01 464,995,647.55
61. Business income, Business cost
In RMB
Amount of current period Amount of previous period
Items
Income Cost Income Cost
Income from 3,350,641,602.84 2,849,092,133.74 3,467,573,802.18 3,004,009,420.05
Main Business
95 / 121
2015 Annual Report
Other Business 69,489,408.14 60,218,866.18 91,439,263.50 69,937,165.94
income
Total 3,420,131,010.98 2,909,310,999.92 3,559,013,065.68 3,073,946,585.99
62.Business tax and subjoin
In RMB
Items Amount of current period Amount of previous period
Consumption tax
854,693.21 539,092.68
Business tax
5,986,812.60 7,114,413.11
City maintenance and construction tax
2,563,483.27 3,046,118.23
Education surtax
Resource tax
1,693,332.34 1,455,227.40
Embankment expenses
Local education surcharges 737,904.06 2,030,745.47
Water Construction Fund 830,433.27 883,895.80
Total 12,666,658.75 15,069,492.69
63.Sales expenses
In RMB
Items Amount of current period Amount of previous period
Transport costs 52,186,403.70 54,569,355.17
Travel expenses 3,016,690.87 3,167,060.95
Wege 14,338,535.97 13,565,398.63
Warranty expenses 17,545,699.32 5,264,503.18
Total 103,477,015.27 88,372,759.38
64.Administrative expenses
In RMB
Amount of current period Amount of previous
Items
period
Wage 68,461,985.30 68,904,343.01
Travel expenses 15,529,016.99 13,456,214.86
Depreciation 11,888,935.22 18,203,746.77
Repair fees 2,981,097.66 18,203,746.77
Taxes 12,956,434.12 13,101,140.96
R& D expenses 136,696,260.57 135,620,731.54
Total 265,472,065.47 262,258,841.68
65. Financial expenses
In RMB
Amount of current period Amount of previous
Items
period
Interest expense 51,668,462.64 45,289,423.09
Less: Incoming interests -11,079,762.54 -13,375,163.42
Exchange gains/losses 4,247,262.59
Less ：exchange gains -1,643,030.05
Bills discounted rate 9,576,943.91 9,629,943.80
3,092,970.73 3,488,862.02
Handling charges
96 / 121
2015 Annual Report
Total 51,615,584.69 49,280,328.08
66. Asset impairment loss
√Applicable□Not applicable
In RMB
Items Amount of current period Amount of previous period
695,283.58 -1,482,288.38
I .Losses for bad debts
II. Losses for falling price of inventory
III. Losses of available for sale financial
assets impairment
IV.Impairment on held-to-mathurity
investments
V.Impairment on long-term equity
investment
VI.Impairment on investment properties
VII.Impairment on fixed assets
VIII. Impairment on construction materials
IX. Impairment on construction in progress
X. Impairment on bearer biological assets
XI. Impairment on oil and gas assets
XII. Impairment on intangible assets
XIII. Impairment on goodwill
XIV.Other
695,283.58 -1,482,288.38
Total
67. Gains on the changes in the fair value
□Applicable√Not applicable
68.Investment income
√Applicable□Not applicable
In RMB
Items Amount of current period Amount of previous period
Long-term equity investment income under 1,679,147.83 -219,428.66
equity method
Investment loss through disposal of
long-term equity investment
Income from financial assets measured by
fair value with changes in fair value
recognised in profit or loss
97 / 121
2015 Annual Report
Investment income from disposal of
financial assets measured by fair value with
changes in fair value recognised in profit or
loss
Investment income received from holding
of held-to-maturity investments during
holding period
Investment income received from available
for sale financial assets during holding
period
Investment income from disposal of
available for sale financial assets
Investment income from the remaining
equity recalculated by fair value after losing
control
Total 1,679,147.83 -219,428.66
69.Non-operating gains
In RMB
Items Amount of current Amount of previous Recorded in the amount
period period of the non-recurring
gains and losses
Total gains from disposal 1,822,796.20 36,947.96 1,822,796.20
of non-current assets
Including ： Gains from 1,822,796.20 36,947.96 1,822,796.20
disposal of fixed assets
Gains from disposal of
intangible assets
Gains from debt
restructuting
Non-monetary assets
exchangegains
Accepting donations
Government grants 20,121,577.30 29,728,468.03 20,121,577.30
Quality claims and other 6,324,810.45 3,023,794.63 6,324,810.45
Total 28,269,183.95 32,789,210.62 28,269,183.95
Government subsidy reckoned into current gains/losses
In RMB
Items Amount of this period Amount of last period Assets-related/income -related
Namely VAT 1,482,826.71 Related to income
That levy refunds
Tax return 6,394,300.00 12,113,720.00 Related to income
Subsidies for social 1,571,640.00 Related to income
security center
Technological Center 800,000.00 5,000,000.00 Related to income
Capacity Building Project
Provincial science and 1,200,000.00 3,800,000.00
technology innovation and
development of special Related to income
funds
98 / 121
2015 Annual Report
Special funds for foreign 1,020,000.00
economic & trade Related to income
Development
Development Project of 400,000.00
small & medium Related to income
Enterprises
Auto special project award 800,000.00 Related to income
Science and technology 3,061,213.00 3,646,669.65
awards categories of Related to income
government grants
Staging included in 6,446,064.30 2,113,611.67 Related to income
deferred income
Total 20,121,577.30 29,728,468.03 /
70.Non-Operation expense
In RMB
The amount of
Amount of current period Amount of previous
Items non-operating gains &
lossed
period
Total of non-current 4,660,500.90 6,164,369.73 4,660,500.90
asset Disposition loss
Incl: loss of fixed assets 4,660,500.90 6,164,369.73 4,660,500.90
disposition
loss of intangible assets
disposition
Loss on debt
reconstruction
Non-monetary asset
exchange losses
Foreign donations 200,000.00 200,000.00
Other 1,187,801.64 2,919,194.02 1,187,801.64
Total 6,048,302.54 9,083,563.75 6,048,302.54
71. Income tax expense
(1) Lists of income tax expense
In RMB
Items Report period Same period of the previous year
Current income tax expense 8,309,518.62 9,728,587.03
Deferred income tax expense 16,899.35 2,126,565.54
Total 8,326,417.97 11,855,152.57
(2) Adjustment process of accounting profit and income tax expense
In RMB
Items Report period
Total profits 100,793,432.54
Current income tax expense accounted by tax and relevant 15,832,385.60
regulations
Effect of different tax rates applicable to subsidiaries
Income tax adjustments on prior periods 402,708.32
Impact of non-taxable income
99 / 121
2015 Annual Report
Impact of non-deductible costs, expenses and losses 1,285,493.39
Affect the use of deferred tax assets early unconfirmed
deductible losses
This issue does not affect the deferred tax assets
recognized deductible temporary differences or deductible
loss
Additional impact of research and development expenses -9,211,068.69
deduction
Influence of deferred income tax assets 16,899.35
Income tax expenses 8,326,417.97
72. Other comprehensive income
Refer to the notes
73. Supplementary information to cash flow statement
(1) Other cash received relevant to operating activities
In RMB
Items Amount of current period Amount of previous period
Other Unit 37,413,865.83 25,850,602.83
Fine and Quality compensation 6,324,810.44 2,715,046.63
Interest income 11,079,762.54 13,381,884.36
Generation advances and utilities 5,236,801.21 3,653,704.66
Govemment Subsidy 13,675,513.01 32,838,609.65
Total 73,730,753.03 78,439,848.13
(2)Other cash paid relevant to operating activities
In RMB
Items Amount of current period Amount of previous period
Office ,transportation andother 89,138,479.30 85,713,672.85
Water and electricity 1,892,112.23 3,198,637.32
Technology Development costs 65,795,259.91 46,188,524.16
Other Current account 43,589,814.71 10,732,113.26
Total 200,415,666.15 145,832,947.59
(3) Other cash received relevant to investment activity
In RMB
Items Amount of current period Amount of previous period
Government grants related to assets received 33,874,000.00 7,000,000.00
Total 33,874,000.00 7,000,000.00
(4) Other cash paid relevant to Investment financing activity
In RMB
Items Amount of current period Amount of previous period
Sale cash assets to pay back rent 22,500,000.00
合计 22,500,000.00
(4) Other cash paid relevant to financing activity
In RMB
Items Amount of current period Amount of previous period
Sale cash assets to pay back rent 36,469.71 1,892,776.00
Total 36,469.71 1,892,776.00
100 / 121
2015 Annual Report
74.Supplement Information for cash flow statement
（1）Supplement Information for cash flow statement
In RMB
Supplement Information Amount of current period Amount of previous period
I. Adjusting net profit to cash flow from
operating activities
Net profit 92,467,014.57 83,198,411.88
Add: Impairment loss provision of assets 695,283.58 -1,482,288.38
Depreciation of fixed assets, oil and gas 119,373,943.03 105,267,596.13
assets and consumable biological assets
Amortization of intangible assets 2,986,601.72 2,164,594.03
Amortization of Long-term deferred 1,999,942.86 1,054,836.23
expenses
Loss on disposal of fixed assets, intangible 2,837,704.70 6,127,421.77
assets and other long-term deferred assets
Loss from scrapping of fixed assets
Loss from fair change
Financial cost 61,245,406.55 55,278,498.58
Loss on investment -1,679,147.83 219,428.66
Decrease in deferred income tax assets 16,899.35 2,386,772.16
Increased of deferred income tax liabilities
Decrease of inventories 24,999,589.65 96,737,246.55
Decease of operating receivables 203,816,390.68 28,674,773.26
Increased of operating Payable -7,009,574.05 -174,192,850.58
Other
Net cash flows arising from operating 501,750,054.81 205,434,440.29
activities
II. Significant investment and financing
activities that without cash flows:
Transferring debts to capital
Convertible corporate bond to mature within
one year
Leasing fixed assets through financing
III．The information of net increase of cash
and cash equivalent
Balance of cash at the End of the period 553,841,516.54 467,564,876.57
Less: Balance of cash at the beginning of the
467,564,876.57 441,509,529.30
period
Add: Balance of cash equivalent at the end
of the period
Less: Balance of cash equivalent at the
beginning of the period
Net increase in cash and cash equivalents 86,276,639.97 26,055,347.27
(2) Net Cash paid of obtaining the subsidiary
□Applicable√Not applicable
(3) Net Cash receive of disposal of the subsidiary
□Applicable√Not applicable
101 / 121
2015 Annual Report
(4) Cash and cash equivalents
In RMB
Items Closing balance Opening balance
1.Cash 553,841,516.54 467,564,876.57
Including：cash at hand 10,570.37 2,316.67
Demand bank deposit 374,053,584.61 289,246,889.74
Demand other monetary funds 179,777,361.56 178,315,670.16
Usable money in Central Bank
Money saved in associated financial bodies
Money from associated financial bodies
II. Cash equivalents
Of which: bond investment which will due
in three months
III. Closing balance of cash and cash 553,841,516.54 467,564,876.57
equivalents
Including: Cash and cash equivalents of
parent company or subsidiaries with use
restrictions
Notes：Margin other cash more than three months due to RMB 102,271,489.59.
75. Note of statement of changes in the owner's equity
Explain "other" project name and adjustment amount of the adjustment of closing balance in previous year, etc.:
76. The assets with the ownership or use right restricted
√Applicable□Not applicable
In RMB
Items Closing book value Restricted reason
Monetary capital 282,048,851.15 Deposit
Bills receivable 3,838,000.00 Issuing bank acceptance bill
Inventory
Fixed assets
Intangible assets
Total 285,886,851.15 /
77. Foreign currency monetary items
√Applicable□Not applicable
(1) Foreign currency monetary items
In RMB
Closing foreign currency Closing convert to RMB
Items Exchange rate
balance balance
Monetary capital
Indluding：USD 2,753,203.11 6.4936 17,878,199.72
Euro 1,508,488.46 7.0952 10,703,027.32
HKD
102 / 121
2015 Annual Report
RMB
RMB
Account receivable
Including：USD 21,232,881.21 6.4936 137,877,837.42
Euro 2,432,671.12 7.0952 17,260,288.14
HKD
RMB
RMB
Long-term loans
Including：USD
Euro
HKD
RMB
RMB
Short-term loans
Including：USD 40,300,000.00 6.4936 261,692,080.00
(2) Note to oversea entities including: for significant oversea entities, shall disclose mai n operating place,
recording currency and selection basis, if there are changes into recording currency, shall also
disclose the reason.
□Applicable√Not applicable
78.Arbitrage
□Applicable√Not applicable
VIII. Changes of merge scope
1. Business merger not under same control
□Applicable√Not applicable
2. Business combination under the same control
□Applicable√Not applicable
3.Counter purchase
□Applicable√Not applicable
4.The disposal of subsidiary
Whether there is a single disposal of the investment to subsidiary and lost control
□ Applicable √ Not applicable
Whether there are multiple transactions step by step dispose the investment to subsidiary and lost control
in reporting period
□ Applicable √ Not applicable
5. Other reasons for the changes in combination scope
Notes to reasons for the changes in combination scope (Newly established subsidiary and subsidiary of liquidation) and
relevant information
6.Other
IX. Equity in other entities
1. Equity in subsidiary
√Applicable□Not applicable
(1) The structure of the enterprise group\
Name of the Main Registration Nature of Proportion of Way of
subsidiary operating place business shareholding(%) gaining
103 / 121
2015 Annual Report
place Directly Indirectly
Wuhu Abaur 75.00
Mechanical & Manufacturing
Wuhu Wuhu Investment
Electrical Co.,
Ltd..
38.46 Under the same
Huangshi
Manufacturing control
Dongbei Founry Huangshi Huangshi
business
Co., Ltd.
combination
Huangshi 100.00 Under the same
Dongbei control
Huangshi BVI Trading
International business
Trade Co., Ltd. combination
Dongbei 100.00 Investment
Electromechanical Manufacturing
Suqian Suqian
(Jiangsu) Co.,
Ltd.
Dongbei(Wuhan) 100.00 Investment
Technology
Wuhan Wuhan R&D Centre
Innovation Co.,
Ltd.
Alashankou 60.00 Investment
Dongbei Power
Alashankou Alashankou
Greenergy Co., Generation
Ltd.
(2) Significant not wholly owned subsidiary
In RMB
Shareholding The profits and Declaring dividends Balance of
proportion of losses arbitrate to distribute to minority
Subsidiary
minority the minority minority shareholder at
shareholder shareholders shareholder closing period
Wuhu Abaur 25.00 17,846,747.90 144,912,057.50
Mechanical &
Electrical Co.,
Ltd..
Huangshi Dongbei 48.72 4,351,093.25 50,732,889.92
Founry Co., Ltd.
104 / 121
2015 Annual Report
(3) The main financial information of significant not wholly owned subsidiary
In RMB
Closing balance Opening balance
Subsidiary Current Non-current Current Non-current Total Current Non-current Current Non-current Total
Total assets Total assets
assets assets Liabilities Liabilites Liabilities assets assets Liabilities Liabilites Liabilities
Wuhu 115,577.39 35,522.40 151,099.79 96,296.47 560.00 96,856.47 119,583.66 33,679.04 153,262.70 104,870.35 630.00 105,500.35
Abaur
Mechanical
& Electrical
Co., Ltd..
Huangshi 26,558.80 16,804.46 43,363.26 29,378.09 3,572.02 32,950.1 29,764.61 17,559.18 47,323.79 33,294.84 4,508.87 37,803.71
Dongbei
Founry Co.,
Ltd.
Amount of current period Amount of previous period
Subsidiary Total Total
Business Business
Net profit comprehensive Business cash flow Net profit comprehensive Business cash flow
income income
income income
Wuhu Abaur Mechanical & 141,777.38 6,480.98 6,480.98 13,382.04 150,924.66 6,048.84 6,048.84 9,832.39
Electrical Co., Ltd..
Huangshi Dongbei Founry 46,291.16 893.08 893.08 4,604.87 47,521.57 1,351.29 1,351.29 5,510.40
Co., Ltd.
105 / 121
2015 Annual Report
(4)Using the asset and settle debts enterprise Group Enterprise Group Major limitations：
(5)To the consolidated financial statements of the scope of financial support provided by the structured
body or other support：
2. The transaction of the Company with its owner’s equity share changed but still controlling the
subsidiary
□Applicable√Not applicable
3. Equity in joint venture arrangement or associated enterprise
(1) Significant joint venture arrangement or associated enterprise
In RMB
Name Main operating Registration Business Proportion Accounting
place place nature treatment of
Directly Indirectly the
investment of
joint venture
or associated
enterprise
Huangshi Huangshi Huangshi Real estate 24.00 Equity
Aibo method
Property Co.,
Ltd.
Hubei Jinling Huangshi Huangshi Development 24.00 Equity
Fine of the method
Agriculture agricultural
Co., Ltd products
(2) Main financial information of significant joint venture
(3)Equity in joint venture arrangement or associated enterprise
√Applicable□Not applicable
4.Significant common operation
□Applicable√Not applicable
5.Equity of structure entity not including in the scope of consolidated financial statements
Related notes to structure entity not including in the scope of consolidated financial statements
6.Other
X.The risk related financial instruments
□Applicable√Not applicable
XI.The disclosure of the fair value
□Applicable√Not applicable
XII. Related party and related Transaction
1.Information related to parent company of the Company
In RMB
106 / 121
2015 Annual Report
Registered Proportion of Proportion of
Name of parent Registered Business
capital share held by voting rights
company place scope
（RMB’0000） parent(%) owned by(%)
Huangshi Manufacturing 24,184.00 50.04 50.04
Dongbei
Huangshi
Electromechanical
Group Co., Ltd.
2. Subsidiaries of the Company
The details to Notes
3. Information on the joint ventures and associated enterprises of the Company
The details to Notes of significant joint venture and associated enterprise of the Company
□Applicable√Not applicable
4.Information on other related parties
√Applicable□ Not applicable
Name Relationship with the Company
Huangshi Dongbei Refrigerating Co., Ltd. Subsidiary of parent company
Huangshi Dongbei Electromechanical Group Co., Other
Ltd.
One of the shareholders of the parent Company Huangshi Dongbei
Huangshi Aibo Technology Development Co., Ltd. Electromechanical Group Co., Ltd., Trust holdings shares of
Huangshi Dongbei Group Employees.
Wuhu Farici Investment Co., Ltd. Other
Hubei Xingdong Investment Co., Ltd. Other
One of the shareholders of the parent Company Huangshi Dongbei
Jiangsu Luoke Electrical Group Co., Ltd.
Electromechanical Group Co., Ltd.
Huangshi Chenxin Photoelectric Co., Ltd. Other
Hubei Dongbei New Energy Co., Ltd. Other
Dongbei New Energy（Wuhu）Co., Ltd. Other
Yuzhou Weiyu Dongbei New Energy Co., Ltd. Other
Huangshi Jinling Property Services Co., Ltd. Other
Wuhu Abaur Real estate Co., Ltd. Other
Luotian Jinbei Agriculture Co., Ltd. Other
Hubei Jinling Fine agricultural Linyang Co., Ltd. Other
Hubei Jinling Fine agricultural Co., Ltd. Other
Huangshi Jinbei Dairy Co., Ltd. Other
Huangshi Huangshi Director Dongxing Petty Loan Other
Co., Ltd.
Huangshi Dongbei Refrigerator industry Co., Ltd. Other
Jiangsu Zidong Real Estate Co., Ltd. Other
Huangshi Huizhi Investment Partnership（Limited Other
partnership）
Lin Yinkun Other
Lu Lihua Other
Zhu Yushan Other
Gao Jianjun Other
Dou Zuowei Other
Ma Yanping Other
Hu Rongzhi Other
107 / 121
2015 Annual Report
5. List of related-party transactions
(1) Information on acquisition of goods and reception of labor service
√Applicable□ Not applicable
Acquisition of goods and reception of labor service
In RMB
Amount of
Related-party Content Amount of last period
this period
Huangshi Dongbei Refrigerating 10,905.67 16,033.45
Compressor parts
Co., Ltd.
Huangshi Dongbei 4,471.39 3,093.96
Electromechanical Group Co., Compressor parts
Ltd.
Huangshi Aibo Technology 41,010.34 45,708.67
Compressor parts
Development Co., Ltd.
Jiangsu Luoke Electric Group 27,136.68 36,316.77
Compressor parts
Co., Ltd.
Huangshi Jinbei Dairy Co., Ltd. Agricultural products 412.53 348.78
Hubei Jinling Fine Agriculture 80.57 45.01
Agricultural products
Co., Ltd.
Hubei Dongbei New Energy 40,455.39 11,938.30
Photovotaic
Co., Ltd.
Information of sales of goods and provision of labor service
In RMB
Related-party Content Amount of this period Amount of last period
Huangshi Dongbei 1,626.44 1,541.69
Compressor
Refrigerating Co., Ltd.
Huangshi Dongbei Compressor parts 15.99 101.09
Electromechanical Group Co.,
Ltd.
Huangshi Aibo Technology 402.92 1,623.53
Material
Development Co., Ltd.
Jiangsu Luoke Electric Group 25.46 166.07
Co., Ltd.
(2) Related trusteeship/contract
□ Applicable √ Not applicable
(3)Information of related lease
√Applicable□ Not applicable
The Company was lessor
In RMB
Cagegory of leased The lease incme confirmed The lease income confirmed in
Name of lessee
assets in this year last year
Huangshi Dongbei 5,538,679.28 2,970,905.22
Refrigerating Co., House
Ltd.
Huangshi Jinbei Dairy 148,680.00 146,880.00
House
Co., Ltd.
Hubei Dongbei New 861,973.92 108,000.00
House
Energy Co., Ltd.
Jiangsu Luoke 308,940.00 255,450.00
Electrical Group Co., House
Ltd.
Wuhu Abaur Real 6,000.00 6,000.00
House
estate Co., Ltd.
Wuhu Farici 14,400.00 14,400.00
House
Investment Co., Ltd.
108 / 121
2015 Annual Report
Jiangsu Luoke 90,840.00
Electrical Group Co., House
Ltd.
The company was lessee：
In RMB
Category of leased The lease income confirmed The lease incoe confirmed in
Lessor
assets in this year last year
Huangshi Dongbei Land 36,000.00 36,000.00
Electromechanical
Group Co., Ltd.
(4) Related-party guarantee
The company was guarantor:
In RMB
Execution
Guarantor Guarantee amount Start date End date
accomplished or not
Huangshi Dongbei 1,210.00 2015-11-11 2016-12-17 No
Electromechanical
Group Solar Energy
Co., Ltd.
Dongbei 5,224.66 2015-7-10 2020-12-16 No
Electromechanical
(Jiangsu) Co., Ltd.
Dongbei 2,995.00 2015-7-16 2016-11-3 No
Electromechanical
Co., Ltd.
Wuhu Abaur 46,465.60 2015-6-8 2016-6-20 No
Mechanical &
Electrical Co., Ltd.
Alashankou 35,000 2015-5-28 2027-11-27 No
Dongbei Clean Co.,
Ltd.
Huangshi Dongbei 709,063.00 2015-8-17 2016-6-25 No
Founry Co., Ltd.
Huangshi Aibo 3,000.00 2015-12-28 2016-12-17 No
Technology
Development Co.,
Ltd.
Huangshi Dongbei 7,317.94 2015-7-24 2016-6-29 No
Refrigerating Co.,
Ltd.
The Company was secured party
In RMB
Execution
Guarantor Guarantee amount Start date End date
accomplished or not
Wuhu Abaur 11,000.00 2015-6-8 2016-6-20 No
Mechanical &
Electrical Co., Ltd.
Huangshi Dongbei 77,423.67 2015-7-3 2016-9-16 No
Electromechanical
Group Co., Ltd.
(5)Inter-bank lending of capital of related parties
□ Applicable √ Not applicable
109 / 121
2015 Annual Report
(6)Related party asset transfer and debt restructuring
√Applicable □ Not applicable
In RMB
Amount of current Amount of previous
Related party Content
period period
Huangshi Dongbei Fixed assets transfer 24,206,565.05
Refrigerating Co., Ltd.
Huangshi Aibo Technology Fixed assets transfer 20,805,356.68
Development Co., Ltd
Total 45,011,921.73
(7)Rewards for the key management personnel
√Applicable □ Not applicable
In RMB
Items
Amount of current period Amount of previous period
Rewards for the key management 1,813,487.48 3,256,892.32
personnel
(8)Other related-party transactions
6. Receivables and payables of related parties
√Applicable □ Not applicable
(1) Receivable
In RMB
Items Related parties
Items Related parties Bad debt reserve Bad debt reserve
Book balance Book balance
Huangshi 5,237,329.05
Other account Dongbei
receivable Refrigerating
Co., Ltd.
Huangshi 8,476,792.53 21,018,436.58
Dongbei
Prepayment
Electromechanical
Group Co., Ltd.
Huangshi 27,395,464.63 27,395,464.63
Dividend
Dongbei New
receivable
Energy Co., Ltd
Total 35,872,257.16 53,651,230.26
(2) Payables
In RMB
Items Related party Book Balance at period
Book Balance at period beginning
end
Account payable Huangshi Dongbei 9,826,471.93 339,453.31
Refrigerating Co., Ltd.
Account payable Huangshi Dongbei 318,105.00 739,077.49
Electromechanical Group
Solar Energy Co., Ltd.
Account payable Huangshi Dongbei New 4,153,333.90 31,339,984.95
Energy Co., Ltd
Huangshi Aibo 86,564,629.33 16,716,004.40
Other account payable Technology Development
Co., Ltd.
110 / 121
2015 Annual Report
Jiangsu Luoke Electrical 41,574,762.79 31,330,954.16
Other account payable
Group Co., Ltd.
Huangshi Jinbei Dairy Co., 149,435.00 149,435.00
Other account payable
Ltd.
Huangshi Aibo 3,000,000.00
Other account payable
Technology Co., Ltd.
Jiangsu Luoke Electric 2,022,045.74
Other account payable
Co., Ltd.
Total 147,608,783.69 80,465,474.31
7. Related party commitment
8.Other
XIII. Stock payment
1. The stock payment overall situation
□ Applicable √ Not applicable
2.The stock payment settled by equity
□ Applicable √ Not applicable
3. The stock payment settled by cash
□ Applicable √ Not applicable
4. Modification and termination of the stock payment.
5.Other
XIV. Commitments
1. Significant commitments
□ Applicable √ Not applicable
2. Contingency
□ Applicable √ Not applicable
XV. Events safter balance sheet date
1. Significant events had not adjusted
□ Applicable √ Not applicable
2. Profit distribution
□ Applicable √ Not applicable
3. Sales return
□ Applicable √ Not applicable
4. Notes of other significant events
XVI.Other significant events
1. The accounting errors correction in previous period
□ Applicable √ Not applicable
2. Debt restructuring
□ Applicable √ Not applicable
111 / 121
2015 Annual Report
3. Replacement of assets
□ Applicable √ Not applicable
4. Pension plan
□ Applicable √ Not applicable
5. Discontinuing operation
□ Applicable √ Not applicable
6.Segment information
□ Applicable √ Not applicable
7. Other important transactions and events have an impact on investors decision-making
8.Other
112 / 121
2015 Annual Report
XVII.Notes s of main items in financial reports of parent company
1.Account receivable
（1）Account receivable classified by category
In RMB
Year-end balance Year-beginning
Category Book balance Provision for bad debts Book balance Provision for bad debts
Balance value Balance value
Amount Proportion(%) Amount Proportion(%) Amount Proportion(%) Amount Proportion(%)
Receivables with 47,323,477.42 6.75 47,323,477.42 23,101,169.93 3.70 23,101,169.93
major individual
amount and bad
debt provision
provided
individually
2. Other 653,362,892.60 93.25 24,723,229.06 3.78 628,639,663.54 601,182,461.33 96.30 23,779,804.16 3.96 577402657.17
Receivables
provided bad debt
provision in
groups
Other Account
receivable with
minor individual
amount but bad
debtprovision is
provided
Total 700,686,370.02 / 24,723,229.06 / 675,963,140.96 624,283,631.26 / 23,779,804.16 / 600,503,827.1
113 / 121
2015 Annual Report
Receivable accounts with large amount individually and bad debt provisions were provided
□ Applicable √ Not applicable
In the groups, other accounts receivable adopting aging analysis method to withdraw bad debt provision:
√ Applicable □Not applicable
In RMB
Balance at year-end
Aging
Account receivable Provision for bad debts Proportion%
Within 1 year
Including：Subitem within 1 year
Subtotal within 1 year 641,358,793.40 12,827,175.87 2
1-2 years 5,863.66 293.18 5
2-3 years 146,393.62 43,918.09 30
Over 3 years
3-4 years 60
Over 4 years 11,851,841.92 11,851,841.92 100
4-5 years
Over 5 years
Total 653,362,892.60 24,723,229.06
In the groups, other accounts receivable adopting balance percentage method to withdraw bad debt
provision:
□ Applicable √ Not applicable
In the groups, accounts receivable adopting other methods to withdraw bad debt provision:
Including :Receivable accounts written back or retrieved in the report period.
□ Applicable √ Not applicable
(2) Account receivables actually written-off during the reporting period
□ Applicable √ Not applicable
Including: Account rec eivables actually written-off during the reporting period:
□ Applicable √ Not applicable
(3) Top five of account receivable of closing balance collected by arrears party
In RMB
Name Closing balance Proportion(%) Bad debt Provision
1.Client 1 159,624,217.35 22.78 3,192,484.35
2.Client 2 54,140,813.91 7.73 1,082,816.28
3.Client 3 49,337,189.54 7.04 986,743.79
4.Client 4 39,377,937.80 5.62 787,558.76
5.Client 5 33,738,555.45 4.82 674,771.11
Total 336,218,714.05 47.98 6,724,374.28
(4) Derecogniziton of account receivable due to the transfer of financial assets
114 / 121
2015 Annual Report
(5) The amount of the assets and liabilities formed by the transfer and the continues involvement of
accounts receivable
115 / 121
2015 Annual Report
2.Other receivable
(1)Category of Other receivable
In RMB
Closing balance Opening balance
Category Book balance Provision for bad debts Book balance Provision for bad debts
Balance value Balance value
Amount Proportion(%) Amount Proportion(%) Amount Proportion(%) Amount Proportion(%)
Accounts receivable of
individual significance and
subject to individual
impairment assessment
Accounts receivable 2,048,471.48 100.00 55,487.39 2.71 1992984.09 8,735,583.87 100.00 1,152,780.24 13.20 7,582,803.63
subjecttoimpairment
assessment by credit risk
characteristics of a
portfolio
Accounts receivable of
individual insignificance but
subject ot individual
impairment assessment
Total 2,048,471.48 / 55,487.39 / 1,992,984.09 8,735,583.87 / 1,152,780.24 / 7,582,803.63
116 / 121
2015 Annual Report
Other accounts receivable with insignificant single amount but large risks of groups after grouping by
credit risks characteristics at the end of reporting period
□ Applicable √ Inapplicable
In the groups, other accounts receivable adopting aging analysis method to withdraw bad debt provision:
√Applicable □Inapplicable
In RMB
Closing balance
Aging Other account Provision for bad
Proportion(%)
receivable debts
Within 1 year
Including：Subitem within 1 year
Subtotal within 1 year 1,564,539.22 31,290.78 2
1-2 years 483,932.26 24,196.61 5
2-3 years 30
Over 3 years
3-4 years 60
Over 4 years 100
4-5 years
Over 5 years
Total 2,048,471.48 55,487.39
In the groups, other accounts receivable adopting balance percentage method to withdraw bad debt
provision:
□ Applicable √ Not applicable
In the groups, other accounts receivable adopting other methods to withdraw bad debt provision:
(2) Particulars of the actual verification of other accounts receivable during the reporting period
□ Applicable √ Not applicable
(3) Other account receivable classified by account nature
√Applicable □ Not applicable
In RMB
Nature Closing book value Opening book value
Current account 637,701.68 586,276.97
Cash/Deposit 227,623.04 237,623.04
Petty cash 380,000.00 1,303,638.15
Other 12,310.64 703,171.23
.Export rebates 790,836.12 5,904,874.48
Total 2,048,471.48 8,735,583.87
(4) The top five other account receivable classified by debtor at period end
√Applicable □ Not applicable
In RMB
Closing balance of
Name Nature Closing balance Aging Proportion(%)
bad debt provision
1.Export rebates 1.Export rebates 790,836.12 Within 1 year 38.61 15,816.72
117 / 121
2015 Annual Report
2.Technology Petty cash 300,000.00 Within 1 year 14.65 6,000.00
Development
Dept.
3.Beijing Lanyu Current account 141,000.00 Within 1 year 6.88 2,820.00
Tianhong
Technology Co.,
Ltd.
4.Wu Jiong Petty cash 80,000.00 Within 1 year 3.91 1,600.00
5.Fei Yinxin Petty cash 60,000.00 Within 1 year 2.93 1,200.00
Total / 1,371,836.12 / 66.98 27,436.72
(5) Accounts receivable involved with government subsidies
□ Applicable √ Not applicable
(6) Other account receivable which terminate the recognition owning to the transfer of the financial
assets
(7)The amount of the assets and liabilities formed by the transfer and the continues involvement of other
Other notes：
3.Long-term equity investment
√Applicable □ Not applicable
In RMB
Closing balance Opening balance
Items Book Bad debt Book Bad debt
Book value Book value
balance provision balance provision
Investment to the subsidiary 188,161,074.70 188,161,074.70 188,161,074.70 188,161,074.70
Investment to joint ventures
and associated enterprises
Total 188,161,074.70 188,161,074.70 188,161,074.70 188,161,074.70
（1）Investment to the subsidiary
√Applicable □ Not applicable
In RMB
Withdrawn
impairment Closing
Opening Closing provision balance of
Name Increase Decrease
balance balance in the impairment
reporting provision
period
Wuhu Abaur 33,339,800.00 33,339,800.00
Mechnical &
Electrical Co., Ltd.
Dongbei 6,821,274.70 6,821,274.70
International Trade
Co., Ltd.
Dongbei(Wuhan) 8,000,000.00 8,000,000.00
Technology
Innovation Co., Ltd.
Dongbei 140,000,000.00 140,000,000.00
Electromechanical
118 / 121
2015 Annual Report
(Jiangsu) Co., Ltd.
Total 188,161,074.70 188,161,074.70
（2）Investment to joint ventures and associated enterprises
□ Applicable √ Not applicable
4.Business income and Business cost
In RMB
Same period of the previous
Items Report period year
Income Cost Income Cost
Main Business 2,628,198,278.93 2,421,003,149.21 2,704,621,901.48 2,478,923,855.00
Other Business 48,621,542.78 24,955,922.31 61,008,853.32 56,384,750.99
Total 2,676,819,821.71 2,445,959,071.52 2,765,630,754.80 2,535,308,605.99
5.Investment income
√Applicable□Not applicable
In RMB
Items
Amount of current period Amount of previous period
Long-term equity investment income accounted by 27,395,464.63
cost method
Long-term equity investment income accounted by
equity method
Investment income arising from disposal of 3,117,733.27
long-term eqiuty investments
Income from long-term eqiuty investment income of
eqiuty method
Investment income received from disposal of
long-term eqiuty investment calculated by fair value
Investment income received from holding of
held-to-matutity investment
Investment income received from holding of
available-for-sale financial assets
Investment income arising from disposal of
available-for-sale financial assets
After the loss of control, the remaining equity
remeasured at fair value gains arising
Total 30,513,197.90
6.Other
XVIII. Supplement Information
1.Non-recurring gains and losses of current year
In RMB
Items Amount Notes
Non-current asset disposal gain/loss -462,241.68
Tax refund, deduction and exemption that is
examined and approved by authority exceeding or
119 / 121
2015 Annual Report
has no official approval document.
Governmental Subsidy accounted as current 20,038,689.31
gain/loss, except for those subsidies at with amount
or quantity fixed by the national government and
closely related to the Company’s business operation.
Capital occupation fee collected from non-financial
organizations and accounted as current gain/loss.
Income from the exceeding part between investment
cost of the Company paid for obtaining subsidiaries,
associates and joint-ventures and recognizable net
assets fair value attributable to the Company when
acquiring the investment
Gains and losses from exchange of
non-non-monetary assets
Gains and losses from assets under trusted
investment or Management
Asset impairment provisions for force major such as
natural disasters
Gain/loss from debt reorganization
Enterprise reorganization expenses, such as payment
to stuff placement and consolidation expenses
Gain/loss from trades obviously departed from fair
value
Net gain/loss of current term from consolidation of
subsidiaries under common control from beginning
of term to the consolidation date
Gain/loss from debt forcasting without connection to
the main business operation
In addition to normal business with the company
effective hedging related business, holders of
tradable financial assets, transactions and financial
liabilities arising from changes in fair value gains
and losses, as well as the disposal of trading of
financial assets, trading financial liabilities and
available-for-sale financial assets gains return on
investment;
Single impairment test for impairment of receivables
transferred back to preparation
Gains and losses obtained from external trusted
loans
The use of fair value measurement model of
follow-up to the fair value of real estate investment
gains and losses arising from changes
According to tax, accounting and other laws,
regulations, the requirements of the current Gain/loss
for a one-time adjustment of the impact of the
current Gain/loss;
Entrusted with the operating of the trust to obtain fee
income
Net amount of non-operating income and expense 2,644,433.78
except the aforesaid items
Other non-recurring Gains/loss items
.Amount of influence of income tax -3,879,230.38
Amount of influence of minority interests -7,250,561.72
Total 11,091,089.31
For the Company’s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on
information disclosure for Compaines Offering their Securities to the Public-Non-recurring Gains and
Losses and its non-recurring gain/loss items as illustrated in the Explanatory Announcement No.1 on
120 / 121
2015 Annual Report
information Disclosure for Companies offering their securities to the public-non-recurring Gains and
losses which have been defined as recurring gains and losses, it is necessary to explain the reason.
In RMB
Items Amount Reason
2.Return on equity(ROE)and earnings per share(EPS)
Weighted average Earnings per share
Profit of the reporting period
return on equity（%） Basic earnings per share Diluted earnings per share
Net profit attributable to 7.20 0.297
shareholders of parent company
Net profit attributable to 6.06 0.250
shareholders of parent company after
deduction of non-current gains and
losses
3.Differences between accounting data under domestic and overseas accounting
standards
□ Applicable √ Not applicable
4.Other
XII. Documents Available for Inspection
Documents Available for Accounting statements carried with personal signatures and seals of legal representative,
Inspection Chief Financial officer and Financial Principal.
Documents Available for Original of Auditors’ Report carried with the seal of Certified Public Accountants as well
Inspection as personal signatures of certified Public accountants.
Documents Available for The texts of all the Company's documents publicly disclosed on the newspapers and
Inspection periodicals designated by China Securities Regulatory Commission in the report period.
Chairman of the board of directors: Zhu Jinming
Issue day approved by the Board of Directors：April 21, 2016
121 / 121
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