CSG HOLDING CO., LTD.
SEMI-ANNUAL REPORT 2018
Chairman of the Board:
CHEN LIN
August 2018
CSG Semi-annual Report 2018
Section I Important Notice, Content and Paraphrase
Board of Directors and the Supervisory Committee of CSG Holding Co., Ltd. (hereinafter referred
to as the Company) and its directors, supervisors and senior executives hereby confirm that there
are no any fictitious statements, misleading statements, or important omissions carried in this report,
and shall take all responsibilities, individual and/or joint, for the facticity, accuracy and
completeness of the whole contents.
Ms. Chen Lin, Chairman of the Board, Mr. Wang Jian, responsible person in charge of accounting
and Ms.Wang Wenxin, principal of the financial department (accounting officer) confirm that the
Financial Report enclosed in the semi-annual report of the Company is true, accurate and complete.
All directors were present the meeting of the Board for deliberating the semi-annual report of the
Company in person.
This report involves future plans and some other forward-looking statements, which shall not be
considered as virtual promises to investors. Investors are kindly reminded to pay attention to
possible risks.
Details of the risk factors and countermeasures of future development have been well-described in
this report, please find in Section IV Performance Discussion and Analysis.
The Company has no plans of cash dividend distribution, bonus shares being sent or converting
capital reserve into share capital.
This report is prepared both in Chinese and English. Should there be any inconsistency between the
Chinese and English versions, the Chinese version shall prevail.
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CSG Semi-annual Report 2018
Content
Section I. Important Notice, Content and Paraphrase ...................................................................................... 1
Section II. Company Profile & Financial Highlights ......................................................................................... 4
Section III. Overview of the Company’s Business ............................................................................................. 7
Section IV. Performance Discussion and Analysis ......................................................................................... 10
Section V. Important Events .............................................................................................................................. 23
Section VI. Changes in Shares and Particulars about Shareholders.............................................................. 39
Section VII. Particulars about Directors, Supervisors and Senior Executives .............................................. 46
Section VIII. Financial Report .......................................................................................................................... 48
Section IX. Documents Available for Reference ............................................................................................. 131
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CSG Semi-annual Report 2018
Paraphrase
Items Refers to Contents
Company, the Company, CSG or the Group Refers to CSG Holding Co., Ltd.
Foresea Life Refers to Foresea Life Insurance Co., Ltd.
Ultra-thin electronic glass Refers to The electronic glass with thickness between 0.1~1.1mm
Second-generation energy-saving glass Refers to Double silver coated glass
Third-generation energy-saving glass Refers to Triple Silver coated glass
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CSG Semi-annual Report 2018
Section II. Company Profile & Financial Highlights
I. Company Profile
Short form of the stock Southern Glass A、Southern Glass B Stock code 000012、200012
Listing stock exchange Shenzhen Stock Exchange
Legal Chinese name of the Company 中国南玻集团股份有限公司
Abbr. of legal Chinese name of the Company 南玻集团
Legal English name of the Company CSG Holding Co., Ltd.
Abbr. of legal English name of the Company CSG
Legal Representative Chen Lin
II. Person/Way to contact
Secretary of the Board Representative of security affairs
Name Yang Xinyu Chen Chunyan
CSG Building, No.1 of the 6th Industrial CSG Building, No.1 of the 6th Industrial
Contact address
Road, Shekou, Shenzhen, P. R.C. Road, Shekou, Shenzhen, P. R.C.
Tel. (86)755-26860666 (86)755-26860666
Fax. (86)755-26860685 (86)755-26860685
E-mail securities@csgholding.com securities@csgholding.com
III. Other information
1. Way of contact
Whether registered address, office address and their postal codes, website address and email address of the Company changed in the
report period or not
□ Applicable √Not applicable
The registered address, office address and their postal codes, website address and email address of the Company did not change in
the report period. More details can be found in Annual Report 2017.
2. Information disclosure and preparation place
Whether information disclosure and preparation place changed in the report period or not
□Applicable √ Not applicable
The newspapers designated by the Company for information disclosure, the website designated by CSRC for disclosing semi-annual
report and preparation place of semi-annual report did not change in the report period. More details can be found in Annual Report
2017.
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CSG Semi-annual Report 2018
3. Other relevant information
Whether other relevant information changed in the report period or not
□Applicable √ Not applicable
IV. Main accounting data and financial indexes
Whether it has retroactive adjustment or re-statement on previous accounting data for accounting policy changed and accounting
error correction or not
□Yes √ No
The report period The same period Increase/decrease
(Jan. to Jun.2018) of last year year-on-year
Operating income (RMB) 5,471,169,598 4,944,337,861 10.66%
Net profit attributable to shareholders of the listed company (RMB)
352,837,153 392,992,163 -10.22%
[Note (1)]
Net profit attributable to shareholders of the listed company after
334,049,718 360,945,244 -7.45%
deducting non-recurring gains and losses (RMB) [Note (2)]
Net cash flow arising from operating activities (RMB) 764,564,088 1,019,889,454 -25.03%
Basic earnings per share (RMB/Share) [Note (3)] 0.13 0.14 -7.14%
Diluted earnings per share (RMB/Share) [Note (4)] 0.12 0.14 -14.29%
Weighted average ROE [Note (5)] 4.09% 4.95% -0.86%
Increase/decrease in
End of this period End of last year this period-end over
that of last year-end
Total assets (RMB) 20,524,811,756 19,535,002,368 5.07%
Net assets attributable to shareholders of the listed company (RMB) 8,789,183,848 8,458,587,873 3.91%
The total share capital of the company as of the previous trading day of disclosure (share) 2,856,769,678
Fully diluted earnings per share calculated with latest equity (RMB/share) 0.12
Note (1): The data in the above table has included apportionment of equity incentive expense included in profit and loss of RMB
93.81 million from Jan. to Jun. 2018, which affected the net profit attributable to shareholders of the listed company of RMB 82.55
million. In the period from Jan. to June 2018, after eliminating the impact of equity incentive cost sharing, the net profit attributable
to shareholders of the listed company was RMB 435.39 million, with a year-on-year increase of RMB 42.4 million and growth rate of
10.79%;
Note (2): After eliminating the impact of equity incentive cost sharing, net profit attributable to shareholders of the listed company
from Jan. to June 2018 was RMB 416.6 million with a year-on-year increase of RMB 55.66 million and growth rate of 15.42%;
Note (3): After eliminating the impact of equity incentive cost sharing, basic earnings per share from Jan. to June 2018 was RMB
0.16 per share, with year-on-year growth rate of 14.29%;
Note (4): After eliminating the impact of equity incentive cost sharing, diluted earnings per share from Jan. to June 2018 was RMB
0.16 per share, with year-on-year growth rate of 14.29%;
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CSG Semi-annual Report 2018
Note (5): After eliminating the impact of equity incentive cost sharing, weighted average ROE from Jan. to June 2018 was 5.05%,
with year-on-year growth rate of 0.1%.
V. Difference of accounting data under domestic and overseas accounting standards
1. Differences of the net profit and net assets disclosed in financial report prepared under international and
Chinese accounting standards
□ Applicable √ Not applicable
No such differences in the report period.
2. Difference of the net profit and net assets disclosed in financial report prepared under overseas and
Chinese accounting standards
□ Applicable √ Not applicable
No such differences in the report period.
3.Explanation of the difference of accounting data under domestic and overseas accounting standards
□ Applicable √ Not applicable
VI. Items and amounts of extraordinary profit (gains)/loss
√Applicable □ Not applicable
Unit: RMB
Item Amount Note
Gains/losses from the disposal of non-current asset (including the write-off that
-567,830
accrued for impairment of assets)
Governmental subsidy reckoned into current gains/losses (not including the subsidy
enjoyed in quota or ration according to national standards, which are closely relevant 22,013,800
to enterprise’s business)
Other non-operating income and expenditure except for the aforementioned items 1,567,244
Less: Impact on income tax 3,453,960
Impact on minority shareholders’ equity (post-tax) 771,819
Total 18,787,435 --
It did not exist that items defined as recurring profit (gain)/loss according to the lists of extraordinary profit (gain)/loss in Q&A
Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss in
the report period..
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CSG Semi-annual Report 2018
Section III Overview of the Company’s Business
I. Main business of the Company in the report period
CSG is a leading domestic brand of energy-saving glass and a renowned brand of solar PV products, electronic glass and display
devices. Its products and technologies are very popular at home and abroad. Its main business covers R&D, manufacturing and sales
of high quality float glass and architectural glass, solar glass, silicon materials, renewable energy products such as PV battery and
modules, and new materials and information display products such as ultra-thin electronic glass and display devices. It also provides
one-stop services such as project development, construction, operation and maintenance of solar photovoltaic power plants.
Flat glass business
CSG’s five production bases for flat glass now has 10 float glass production lines representing the most advanced technology in
domestic market and 2 solar glass production lines. The annual capacity of various high-grade float glass has reached more than 2.32
million tons and the annual capacity of solar rolled glass has reached over 0.43 million tons. The Company owns quartz sand raw
material bases in Jiangyou, Sichuan Province and Yingde, Guangdong Province. The production bases for flat glass, solar glass of the
Company located in Dongguan, Chengdu, Langfang, Wujiang, and Xianning, which can produce various colors of high-grade float
glass and ultra-clear float glass with thickness from 1.3mm to 25mm, each performance indicator of which has reached domestic
advanced level. Those products are widely used in high-grade buildings, decoration and furniture, mirror, automotive windshield,
scanner, copier, display devices and solar energy field.
The Company always adheres to innovation, transformation and upgrading as well as implementation of differentiated competitive
strategy, which further enhances the profitability of flat glass business. In the first half of 2018, all subsidiaries actively launched the
improvement and optimization of production process, and increased the sales of high-value-added products such as original glass of
automotive glass, continuing to enhance the market competitiveness of CSG’s flat glass.
Architectural glass business
As the nation's largest supplier of high-grade engineering and architectural glass, CSG has five architectural energy-saving glass
processing bases which are located in Tianjin, Dongguan, Xianning, Wujiang and Chengdu. The Company possesses the world's most
advanced glass deep-processing equipment and testing instruments, and its products cover all kinds of architectural glass. R&D and
use of coating technology of the Company keep pace with the world and its technology of high end product is even of the world’s
leading level. Following the second generation of energy-saving glass products, the Company has successively developed the third
generation and multi-function energy-saving glass products with continuous improving energy-saving and heat-preservation effect.Its
high-quality energy-saving LOW-E insulating glass has occupied more than 50% of the domestic high-end market. At present, the
Company’s LOW-E coated insulating glass and LOW-E coated glass have reached annual capacity of more than 16 million square
meters and 36 million square meters respectively.
The Company’s quality management system for engineering and architectural glass has been respectively approved by organizations
of UK AOQC and Australia QAS. The product quality which meets the national standards of the US, the UK and Australia enables
CSG has an advantage in the international tendering and bidding. Since 1988, CSG's engineers and technicians have been
continuously participating in the formulation and compilation of various national standards and industry standards. Various
high-quality architectural glass of the Company has been used in many landmark buildings at home and abroad, such as Beijing
Capital International Airport, CCTV, Shanghai Oriental Fisherman's Wharf, China Resources Headquarters Building, Shenzhen
KingKey100 Building, Ping An International Finance Centre, Hangzhou International Airport, Chengdu International Finance Centre,
Hangzhou Hampton and other more than ten Hilton Hotel, Hong Kong Four Seasons Hotel, Melbourne Airport, Tokyo Midtown,
International Centre of Abu Dhabi.
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CSG Semi-annual Report 2018
Solar Energy PV business
CSG has entered solar photovoltaic industry since 2005 and is one of enterprises which first enter the field in China. After more than
ten years of construction, operation and technological upgrading, CSG has built a complete industrial chain in the world, covering
high purity polycrystalline silicon materials, silicon wafer, silicon solar cell and modules, and design and construction of solar
photovoltaic power plants, by which the Company ensures the stable quality and best cost-efficiency of its PV products to customers.
The quality of the Company's polysilicon has reached the advanced level in the industry and it has reserved electronic-grade
polysilicon production technology. Meanwhile, the Company is also promoting silicon wafer project of Yichang CSG and
technological innovation of solar cell module in Dongguan in order to enhance the anti-risk capacity of its PV industry chain and
drive the balanced, stable development of its PV industry chain. When the projects are completed, the quality and performance
indicators of the Company's silicon wafers and silicon solar cells will be greatly increased and the general competitiveness of the
chain will be further improved.
To perfect its solar energy chain, in 2015, the Company established Shenzhen CSG PV Energy Co., Ltd., a wholly-owned subsidiary,
the mainline business of which is to invest and develop solar photovoltaic power plants and extend CSG's solar energy industry to
cover highly value-added terminal applications. At the end of 2016, the Company newly established New Energy Application
Department to generally manage the investment, operation and maintenance of the Company's PV power plants and effectively
integrate internal resources, so as to enlarge and strengthen its solar energy industry.
Electronic glass and display device business
The Company, with its more than 20 years of experience in float glass production and powerful technology and innovation team,
entered the ultra-thin electronic glass market in 2010 and gradually completed the nationwide strategic layout with four production
bases, namely Hebei Panel Glass, Yichang Nanbo Photoelectric Glass, Qingyuan CSG and Xianning CSG Photovoltaic Glass. Its
electronic glass products have occupied more than 50% of the domestic market.The quality of CSG’s aluminum and high-aluminum
electronic glass between 0.2mm to 1.1mm has reached the domestic leading level, the performance of which is comparable to that of
imported products, breaking the monopoly of foreign technology. Currently, the products are widely used in mobile terminal cover
glass, tempered glass protective film, ITO conductive Glass, extending to the fields of high-speed rail, military industry, smart home
and others.
Since Shenzhen Nanbo Display Technology Co., Ltd was established in the year of 2000, the Company’s main products and core
technologies of the business have included vacuum magnetron sputtering coating, yellow light pattern forming and TP module
processing, forming two complete touch industry chain.With electronic glass as basic materials, one industry chain is glass
coating→glass yellow light pattern forming→glass touch module processing and its main products covers high-grade and
medium-grade ITO conductive glass, glass Sensor/G-TP module, AR, AF, RT, DLC and other differentiated products of composite
coatings on glass substrates. With flexible optical film as basic materials, the other industry chain is substrate coating→flexible
yellow light pattern processing→flexible touch module manufacturing and its main products include high-grade and medium-grade
ITO conductive roll film, ITO copper film, roll film Sensor/F-TP module, etc. Besides, the company has been devoted to the research
and development of high-end anti-glare (AG) glass substrate since 2013 and presently it is able to successfully produce high-quality
sodium calcium AG glass and high-alumina AG glass. With years of development, Shenzhen Nanbo Display Technology Co., Ltd
has become an application materials supplier in the display touch industry, touch sensor and TP module, and it can provide customers
with a full range of one-stop touch screen material solutions.
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CSG Semi-annual Report 2018
II. Major changes in main assets
1. Details of major changes in main assets
Main assets Note of major changes
Equity assets There was no significant change in equity assets in the report period.
Fixed assets There was no significant change in fixed assets in the report period.
Intangible assets There was no significant change in intangible assets in the report period.
Construction in progress There was no significant change in construction in progress in the report period.
2. Main overseas assets
□ Applicable √ Not applicable
III. Core Competitiveness Analysis
① The Company currently has built complete industrial chains in the industries it involved, which has complementary advantage. In
the glass industry, the Company has set up the industry chain as quartz sand → high quality float glass → architectural energy-saving
glass. In the solar energy industry, the Company has finished the comprehensive construction of industry chain from high purity
polycrystalline silicon materials, silicon wafer processing to cell and its module, photovoltaic rolled glass, etc. and extended to
terminal application of PV power plant. In the electronic glass and display device industry, the Company has set up a complete
industrial chain from the production of the base materials of electronic glass to touch module processing. With the improvement of
technology in the chains, the industrial advantages emerged.
②The Company possesses a complete industry layout. At present, the Company has established large production bases in East China,
West China, South China, North China and Central China, which enables the Company to be closer to the market and serve the
market better.
③The Company has capability of technology innovation and product innovation. It owns independent intellectual property rights of
high-end float glass production process. The technology level of ultra-thin electronic glass is in the leading position in China. The
Company also keeps its R&D and production of energy-saving glass in line with the world’s advanced level, and its technique and
technology in the field of solar energy keep leading position in domestic market.
④The Company possesses high anti-risk capability. It has established a perfect internal control system. Meanwhile, the management
and control ability of account receivable and inventory stand in a high level within the industry. CSG’s new management team has an
international perspective and a more open management philosophy. It aims to achieve further expansion of capacity and market
coverage and continues to expand new business fields along with the national policies of the Belt and Road based on the intensive
development of CSG's main business, making the Company be bigger and stronger, so as to be a comprehensive industrial group.
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CSG Semi-annual Report 2018
Section IV. Performance Discussion and Analysis
I. Overview
Since 2018, China has continued to deepen the supply-side structural reform, steadily propelled the tasks of de-capacity,
de-leveraging, de-stocking, de-cost and addressing weakness, further promoted replacing old growth drivers with new ones, and
continuously improved the structure of economic development.
In 2018, CSG, facing the complex and volatile economic environment and increasingly fierce market competition, seized favorable
market opportunities timely and coped with all kinds of difficulties bravely to ensure the development of production and operation
activities. Oriented by market demand, the Company carefully analyzed its competitive advantages, took the initiative to transform
business mode and update technologies, and improved operating quality by fine management to realize the advancement in stability.
In the first half of 2018, the operation revenue of the Company was RMB 5,471 million with a year-on-year increase of RMB 527
million and growth rate of 10.66%. After eliminating the impact of equity incentive cost sharing, the Company realized net profit of
RMB 444 million, with a year-on-year increase of RMB 44 million and growth rate of 10.87%, and net profit attributable to the
parent company of RMB 435 million, with a year-on-year increase of RMB 42 million and growth rate of 10.79%.
(I) Glass business
The State has continuously strengthened the structural adjustment of excess capacity, adopted strict environmental protection control
policies to eliminate backward production capacity, which promoted the glass business to enter a benign operation cycle step by step,
and optimized the supply and demand structure. The Company spares no effort to grasp the development opportunities of all its
products in the process of supply-side structural reform.
Float glass: In the first half of 2018, the market of float glass continued the favorable trend of last year. The Company adhered to the
concept of high-quality, energy-saving and environmental protection product. Based on its own technological quality advantages and
capacity scale advantages, it has kept strengthening internal management and intensive cultivation, improved production technology
level, co-ordinated sales management and quality services,facilitated differentiation and high-end of products, consolidated its brand
advantage,and improved customer satisfaction. Consequently, the operating profit rose significantly and the revenue and net profit
increased by 17 % and 24% respectively.
Architectural glass: In 2018, due to the sustained high prices of bulk raw materials, especially glass originals, and the growth of
downstream fixed asset investment slowed down, the profitability of architectural glass was squeezed. Under this pressure, the
Company responded positively through a series of measures such as adjusting its market strategy, strengthening industry synergy,
optimizing product structure, increasing overseas orders, intensifying communication with customers, improving production
efficiency, and guaranteed the profit growth, with revenue rising by 6% year-on-year and net profit rising by 12%.
(II) Solar energy business
In 2018, the State further promoted high-quality and orderly development of the photovoltaic industry, and strove to cultivate a
number of high-quality photovoltaic enterprises through the hands of the market, so as to push the achieving of the connection to grid
at an equal price to be achieved. Besides, the investment and technical innovation in the photovoltaic industry have led to a
substantial increase in production capacity and a downward pressure on market price.In addition, as the material manufacturing of
photovoltaic industry is a heavy assets industry, as well as the energy cost of Yichang Base of the group is higher than that of other
companies in the same industry. Consequently, the management has adopted various strategies to respond positively including
attaching importance to production technology innovation and product innovation, planning technological upgrading, and enhanced
the production capacity of high value-added products. Meanwhile, In compliance with the guidance of industry put forward by the
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CSG Semi-annual Report 2018
State, the Company determined the connection to grid at an equal price as the cost control target and industrial development goal and
ultimately realized revenue increased by 3.54% year-on-year, and accumulated net profit of RMB minus 45 million.
(III)Electronic glass and display device business
In the first half of 2018, with the accumulation of technology and the steady development of the market, the performance of the
electronic glass and display devices continued to improve. For the sector of electronic glass, the company maintained its current
capacity and its technology was approaching world-class level. The high-aluminum products of Qingyuan CSG have entered into the
original chips market of cover plate of the domestic mainstream brands of mobile phone and Yichang Photoelectric has successfully
gained its expected technical objective in technical innovation. With the trial production of Xianning Photoelectric, a new generation
of high-aluminum products will be on the market, and the competitive advantage in the high-end electronic glass market will
continue to strengthen. For the sector of display device, the Company has always adhered to the high-end and smart product route. As
it seized the market opportunities of vehicle touch market in the first half year of 2018, the business shipment volumes of TP module
increased substantially, with gross margin rising significantly. The revenue and net profit of the electronic glass and display device
business sector rose by 19% year-on-year and 162% year-on-year respectively in the first half of the year.
II. Main business analysis
See the relevant content in “I. Overview” in “Performance Discussion and Analysis”.
Year-on-year changes of main financial data
Unit: RMB
The corresponding Increase /decrease
The report period Reasons of change
period of last year year-on-year（%）
Mainly due to the increase of sales
Operating revenue 5,471,169,598 4,944,337,861 10.66%
and the price rise of some products
Mainly due to the increase of sales
Operating costs 4,099,496,754 3,737,514,462 9.69%
and part of fuel costs
Mainly due to the increase in
Sales expenses 172,217,254 156,344,731 10.15%
transportation costs
Mainly due to the increase of R&D
Administration expenses 540,554,002 402,554,340 34.28% investment and equity incentive
cost
Mainly due to the increase in cash
Financial expenses 185,877,426 143,374,027 29.65%
reserves and interest rate rise
Mainly due to reduction of the
Income tax expenses 61,371,104 80,453,021 -23.72% subsidiary income tax expense of
some subsidiaries
Mainly due to the increase of R&D
R&D investment 185,844,867 166,809,377 11.41%
investment
Net cash flow arising from Mainly due to the increase in cash
764,564,088 1,019,889,454 -25.03%
operating activities payments for purchases of goods.
Net cash flow arising from Mainly due to the decrease in the
-320,027,457 -739,345,310 -56.71%
investment activities cash paid to purchase fixed assets.
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CSG Semi-annual Report 2018
Mainly because the external
Net cash flow arising from borrowings repaid in current year
454,077,150 67,852,001 569.22%
financing activities reduced while the new borrowings
rose.
Mainly because the net amount of
Net increase of cash and
898,500,181 347,483,532 158.57% external financing rose and
cash equivalent
increased cash reserves.
Major changes on profit composition or profit resources in the report period
□Applicable √Not applicable
There were no major changes on profit composition or profit resources in the report period.
Composition of main business
Unit: RMB
Increase/decrease Increase/decrease Increase/decrease
Operating
Operating cost Gross profit ratio of operating of operating cost of gross profit
revenue
revenue y-o-y y-o-y ratio y-o-y
According to industry
Glass industry 3,633,095,495 2,557,816,187 29.60% 13.48% 7.59% 3.86%
Electronic glass
and display 433,619,425 291,441,739 32.79% 19.16% 11.99% 4.30%
device industry
Solar energy
1,408,790,389 1,282,040,941 9% 2.62% 15.11% -9.87%
industry
Inter-segment
-48,174,687 -45,085,039
offset
According to product
Glass product 3,633,095,495 2,557,816,187 29.60% 13.48% 7.59% 3.86%
Electronic glass
and display 433,619,425 291,441,739 32.79% 19.16% 11.99% 4.30%
device product
Solar energy
1,408,790,389 1,282,040,941 9% 2.62% 15.11% -9.87%
product
Inter-segment
-48,174,687 -45,085,039
offset
According to region
Mainland China 4,647,386,365 3,479,308,363 25.13% 5.05% 3.05% 1.45%
H.K. China 152,221,834 93,917,427 38.30% -4.33% -1.52% -1.76%
Asia (excluding
538,291,685 437,927,883 18.64% 89% 97.66% -3.57%
Mainland China
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CSG Semi-annual Report 2018
and H.K.)
North America 18,072,258 15,723,035 13% 95.68% 110.37% -6.08%
Australia 29,949,405 21,249,428 29.05% 26.54% 18.23% 4.99%
Europe 37,480,049 35,277,495 5.88% 257.98% 270.87% -3.27%
Other regions 3,929,026 2,810,197 28.48% 20.70% 10.18% 6.83%
III. Non - core business analysis
√Applicable □ Not applicable
Unit: RMB
Amount Percentage to total profits Explanation of the reason Whether sustainable or not
Impairment of
3,653,609 0.87% Mainly due to provision for bad debts No
assets
Non-operating Mainly due to income incurred by
2,595,795 0.62% No
income claims for compensation
Mainly due to expenses incurred by
Non-operating
878,551 0.21% assessment of deviation of electricity No
expenses
consumption
IV. Assets and liabilities
1. Significant changes in assets composition
Unit: RMB
End of the same period of last
End of the report period
year Increase or
Explanation of significant
Percentage decrease in
Percentage to changes
Amount to total Amount proportion
total assets
assets
Mainly due to the increase in
Monetary funds 3,372,045,169 16.43% 934,235,201 5.16% 11.27% strategic cash reserves as
well as debt restructuring
Accounts
707,375,368 3.45% 679,943,915 3.76% -0.31%
receivable
Inventory 713,622,649 3.48% 630,593,776 3.48%
Fixed assets 11,494,297,683 56% 11,773,502,135 65.05% -9.05%
Construction in
1,190,859,428 5.80% 1,259,425,371 6.96% -1.16%
progress
Short-term 3,949,419,972 19.24% 2,399,694,000 13.26% 5.98% Mainly due to the increase of
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CSG Semi-annual Report 2018
borrowing borrowing
Mainly due to the issuance of
Long-term
2,364,000,000 11.52% 1,624,000,000 8.97% 2.55% medium-term bill during the
borrowing
period
2. Assets and liabilities at fair value
□Applicable √Not applicable
3. Limited asset rights as of the end of the report period
Item Closing book value Limited reason
Monetary funds 13,791,823 Limited margin circulation
Fixed assets 2,369,789,041 Limited financing lease
Total 2,383,580,864
V. Investment analysis
1. Overall situation
√Applicable □ Not applicable
Investment in the report period (RMB) Investment in the same period of last year ( RMB) Change range
327,218,870 763,429,330 -57.14%
2. The major equity investment obtained in the report period
□Applicable √Not applicable
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CSG Semi-annual Report 2018
3. The major ongoing non-equity investment in the report period
√Applicable □ Not applicable
Unit: RMB 0,000
Accumula
tive Reasons for
Fixed Amount amount Accumulative not
Way
asset invested actually Sourc revenue achieving
of Industry Expected Date of Index of
Project invest in the invested e of Progress of project achieved by the planned
invest involved return disclosure disclosure
ment report by the end funds the end of the progress and
ment
or not period of the report period the expected
report return
period
The technical renovation of
Own
600T production line in Hebei
funds
CSG. At present, the demolition
600T and
of the project has been No gains as
technicalr borro
Manufa completed, and re-masonry and the project Notice
enovation Self-b wings March 16,
Yes cturing 266 266 rehabilitation are under way, 3,887 0 is in the number:
project of uilt from 2018
industry and the denitrification project construction 2018-012
Hebei financ
has begun construction. The period.
CSG ial
whole project meets the
institu
scheduled requirements, and it
tions
is under construction.
Yichang Own CSG has added 1GW capacity The January 06, Notice
Manufa
CSG to Self-b funds of high-efficient polysilicon remaining 2016, April number:
Yes cturing 508 46,182 14,853 671
add a uilt and wafer to achieve 2.2GW 500MW 16, 2016, July 2016-001、
industry
1GW borro capacity of polysilicon wafer. capacity 28, 2018 2016-018、
15
CSG Semi-annual Report 2018
silicon wings Construction of the first 500 construction 2018-040
wafer from MW capacity of polysilicon project has
project financ wafer was completed in been
ial September 2017，and the stopped.
institu original capacity target has been
tions achieved. The remaining
500MW capacity construction
project has been stoped.
CSG plans to construct a PV
power plant within two years
from 2016 to 2017. Its
Own wholly-owned subsidiary,
funds Shenzhen CSG PV Energy Co.,
and Ltd. will self-build 200MW and
PV power borro the remaining 140MW will be Part of the
Manufa Notice
plant Self-b wings constructed by CSG with Qibin project has January 22,
Yes cturing 582 25,490 4,344 2,667 number:201
investmen uilt from Group. During 2016 to June been 2016
industry 6-006
t financ 2018, Shenzhen CSG PV completed.
ial developed and built a total of
institu 81.5MW of photovoltaic power
tions stations, including 61.5MW of
distributed photovoltaic power
plants and 20MW of centralized
photovoltaic power plants.
4 million Own The Company plans to
No gains as
square Manufa funds construct a 4 million square Notice
Self-b the project
meters Yes cturing 5,986 57,444 and meters PV glass production line 10,543 0 May 21, 2016 number:201
uilt is in the
light guide industry borro for new type ultra-thin LCD 6-025
construction
plate and wings display. The line is also
16
CSG Semi-annual Report 2018
PV glass from provided with a capacity of period.
productio financ higher strength ultra-thin
n line ial electronic glass than CSG
institu Qingyuan. The equity of
tions Xianning Feng Wei Technology
Co., Ltd. has been acquired in
2016 and the project is under
construction.
Hebei Plan to establish a production
Panel line for medium-alumina
Glass ultra-thin electronic glass in No gains as
project of Manufa Hebei Panel Glass, using clean the project Notice
Self-b Own October 29,
medium-a Yes cturing 0 1,266 natural gas as the fuel, and 0 0 is in the number:201
uilt funds 2014
lumina industry produce 0.33mm～1.1mm construction 4-030
ultra-thin medium-alumina ultra-thin period.
electronic glass with float process. The
glass project was still in preparation.
Plan to increase two coating
glass production lines and By now,
Expansion support insulating glass part of the
on capacity. When the project is project has
energy-sa completed, the annual been
Manufa Notice
ving glass Self-b capacities of wide flat coated completed December 25,
Yes cturing 0 21,239 -- 0 0 number:201
capacity uilt glass and coated insulating and the 2010
industry 0-046
of glass will rise by 3 million revenue was
Wujiang square meters and 1.2 million not
Project square meters respectively. The calculated
wide flat coated glass line of 3 individually.
million square meters has been
17
CSG Semi-annual Report 2018
completed, and the others will
be invested according to market
situations.
Yichang Plan to build a crystalline
CSG silicon solar cell production line
700MW Manufa with annual capacity of The project Notice
Self-b December 25,
crystalline Yes cturing 0 0 -- 700MW. The project was 0 0 was number:201
uilt 2010
silicon industry suspended and further suspended. 0-046
solar cell investment will be based on
project actual industry situations.
Expandin Plan to expand the solar module
g 500MW production line with annual
Manufa The project Notice
solar Self-b capacity of 500MW. The project January 18,
Yes cturing 0 0 -- 0 0 was number:201
module uilt was suspended and further 2011
industry suspended. 1-003
project in investment will be based on
Dongguan actual industry situations.
The Company plans to
Relocatio construct a module workshop in
n and Xianning, Hubei Province, of
equipment which the final capacity will be
upgrading 500MW. By relocation of some
Manufa The project Notice
of the Self-b of the module equipment of its
Yes cturing 0 0 -- 0 0 was April 16, 2016 number:201
solar uilt subsidiary, Dongguan CSG PV
industry suspended. 6-018
module Technology Co., Ltd. and
productio purchase of some new
n line in equipment, the first stage
Dongguan capacity of the Xianning
workshop will be 300MW and,
18
CSG Semi-annual Report 2018
afterwards, it will be expanded
to 500MW as required by the
market conditions.
Solar
online
self-cleani The Company plans to
Manufa The project Notice
ng coated Self-b construct an online
Yes cturing 0 0 -- 0 0 was April 16, 2016 number:201
glass uilt self-cleaning coated glass line
industry suspended. 6-018
project of in Dongguan.
Dongguan
CSG
The Company plans to
construct an architectural glass
Malaysia-i plant in Negeri Sembilan,
nvested Manufa Malaysia. The Phase I capacity The project Notice
Self-b
architectur Yes cturing 0 0 -- of the newly-built plant will be 0 0 was April 16, 2016 number:201
uilt
al glass industry 1,200,000 square meters suspended. 6-018
plant insulating glass and 1,000,000
square meters single coated
glass.
Total -- -- -- 7,342 151,887 -- -- 33,627 3,338 -- -- --
19
CSG Semi-annual Report 2018
4. Financial assets investment
(1) Securities investment
□ Applicable √ Not applicable
(2) Derivative investment
□ Applicable √ Not applicable
VI. Sale of major assets and equity
1. Sale of major assets
□ Applicable √ Not applicable
There was no sale of major assets in the report period.
2. Sale of major equity
□ Applicable √ Not applicable
VII. Analysis of main subsidiaries and joint-stock companies
√Applicable □ Not applicable
Particular about main subsidiaries and joint -stock companies which have influence on the Company's net profit by over 10%
Unit: RMB
Name of Registered Operating
Type Main business Total assets Net assets Operating revenue Net profit
company capital profit
Development,
Chengdu CSG manufacture and
Subsidiary 260 million 1,058,545,003 510,073,253 549,440,862 121,815,810 103,491,263
Glass Co., Ltd. sales of various
special glass
Development and
Xianning CSG manufacture and
Subsidiary 235 million 813,053,777 418,589,912 395,860,809 64,778,232 57,874,224
Glass Co., Ltd. sales of various
special glass
Manufacture and
Wujiang CSG 565.04
Subsidiary sales of various 1,789,551,580 877,988,690 831,333,867 137,948,797 119,532,274
Glass Co., Ltd. million
special glass
Manufacture and
Dongguan
sales of
CSG Solar Subsidiary 480 million 1,322,873,969 661,957,756 526,314,116 76,749,240 65,347,973
Solar-Energy Glass
Glass Co., Ltd.
products
20
CSG Semi-annual Report 2018
Manufacture and
Hebei CSG USD 48.06
Subsidiary sales of various 839,991,793 436,284,711 297,922,206 39,031,404 29,532,840
Glass Co., Ltd. million
special glass
Dongguan
CSG Deep processing
Subsidiary 240 million 919,028,260 491,472,854 411,980,590 20,542,961 19,153,525
Architectural of glass
Glass Co., Ltd.
Wujiang CSG
East China Deep processing
Subsidiary 320 million 816,346,288 449,638,623 302,466,866 12,968,250 12,581,038
Architectural of glass
Glass Co., Ltd.
Tianjin CSG Development,
Energy producing and sales
Subsidiary 336 million 756,155,581 529,888,778 353,514,982 20,739,218 17,628,335
Conservation of energy-saving
Glass Co., Ltd special glass
Manufacture and
Yichang CSG
sales of high purity 1,467.98
Polysilicon Subsidiary 3,999,258,649 1,352,851,454 859,485,208 -85,829,124 -73,792,946
silicon material million
Co., Ltd.
products
Qingyuan CSG
Development,
New
producing and sales
Energy-Saving Subsidiary 300 million 714,720,246 320,410,765 144,999,746 45,527,193 38,873,189
of ultra-thin
Materials Co.,
electronic glass
Ltd.
Shenzhen
Manufacture and
Nanbo Display
Subsidiary sales of display 143 million 1,666,210,320 806,171,276 240,861,525 52,811,108 11,154,553
Technology
device products
Co., Ltd.
CSG
(Hongkong) Investment and HKD 1
Subsidiary 1,369,789,943 1,251,637,700 0 79,164,800 81,285,539
Investment trading million
Co., Ltd.
Particular about subsidiaries obtained or disposed in report period
□ Applicable √ Not applicable
VIII. Structured main bodies controlled by the Company
□ Applicable √ Not applicable
IX. Prediction of business performance from January to September 2018
Alert of loss or significant change in accumulative net profit from the beginning of year to the end of the next report period or
compared with the same period of last year, and statement of causations.
21
CSG Semi-annual Report 2018
□ Applicable √Not applicable
X. Risks and response measures the Company faces
In 2018, in the face of “New Normal” of domestic economic development and “New CSG” construction task of the Company, the
Company will face the following risks and challenges:
① In 2018, under the efforts of the Board of Directors and all employees, the daily operation of the Company is stable. However, the
Company still faces the risk of lack of high-end talent reserve. To cope with aforesaid risks, the Company will take the following
measures:
A. Construct new corporate culture of CSG as soon as possible, establish an kind of open, equal, fair and enterprising corporate
culture, and reinforce internal core cohesion of employees;
B. Establish remuneration incentive system which related to performance and improve employee incentive mechanism;
C. Strengthen internal employee training, introduce externalhigh-quality talent, and rapidly establish a high-quality talent team;
D. Establish sustainable talent recruitment, cultivation, utilization, retaining, and development management system; create a
future-oriented human resource production, development, supply system that can support the future development of CSG.
②The glass industry is under pressure from fierce competition for similar products and rising raw materials, the solar energy and PV
industry is faced with the risk of industrial integration and price fluctuation, the electronic glass and display devices industry will
encounter the risk of accelerated technical upgrading and slow down in electronic product demand. To cope with aforesaid risks, the
company will take the following measures:
A. In the flat glass industry, the Company will accelerate the technical upgrading and reform of the existing production line to realize
differential operation, expand industrial scale and strengthen industrial competitiveness through industrial M&A;
B. In architectural glass industry, the Company will strengthen the development of high-end market and overseas market, consolidate
the competitive advantage of the Company, and actively develop the residence market, explore new profit growth point, and at the
same time, maintain the industrial advantageous position of the Company through market-oriented extension of industrial chain;
C. In the solar photovoltaic industry, the Company intends to further improve the power generation efficiency of silicon wafers, cells
and modules, reduce manufacturing costs, and improve the market competitiveness of products through technical upgrading
measures such as ingot single crystal and wet-method black silicon PERC technology. At the same time, the Company will firmly
upgrade its technology towards electronic-grade polysilicon and excavate new products and explore new product market;
D. In electronic glass and display devices industry, the Company will strengthen research and development of new technology, new
product, maintain its technical leading advantage in the industry, and further improve the product quality of ultra-thin electronic glass,
so as to rapidly develop terminal market and improve industrial profitability.
③ Since 2018, the market price of the glass and solar industry have experienced great fluctuations, while the price of upstream raw
material has fluctuated significantly, and meanwhile the labor price is constantly rising, which has brought risks to the operation of
the Company. To cope with risk, the Company will take the following measures:
A. Vigorously exploit potential and increase efficiency, and effectively implement energy saving and consumption reduction;
B. Focus on the market change, and lock the price of bulk commodity at proper time;
C. Utilize bulk purchase advantage to reduce purchase cost;
D. Improve automatic production level, raise labor productivity.
④ Risk of fluctuation of foreign exchange rate: At present, nearly 14.37% of the main business income of the Company are from
overseas, in the future, the Company will further develop overseas business, and therefore, the fluctuation of exchange rate will bring
certain risk to the operation of the Company. To cope with such risk, the Company will settle exchange in time and use safe and
effective risk evading instrument and product to relatively lock exchange rate and reduce the risk caused by fluctuation of exchange
22
CSG Semi-annual Report 2018
rate.
23
CSG Semi-annual Report 2018
Section V. Important Events
I. Particulars about annual general meeting and extraordinary general meeting held in the
report period
1. Particulars about Shareholders' General Meeting in the report period
Investor
Meeting session Type of meeting Hold date Disclosure date Disclosure index
participation ratio
The First
Extraordinary
Extraordinary Juchao website(www.cninfo.com.cn)
Shareholders’ 26.99% Mar. 15, 2018 Mar. 16, 2018
general meeting Notice number:2018-011
General Meeting
of 2018
Annual
Shareholders’ Annual general Juchao website(www.cninfo.com.cn)
27.27% May 14, 2018 May 15, 2018
General Meeting meeting Notice number:2018-024
of 2017
2. Extraordinary general meeting which is requested to convene by the preferred shareholders who have
resumed the voting right
□ Applicable √Not applicable
II.Profit distribution and capitalization of capital reserve in the report period
□ Applicable √Not applicable
The Company has no plans of cash dividend distribution, bonus shares being sent or converting capital reserve into share capital.
III. Commitments completed by the actual controllers, the shareholders, the related parties,
the purchasers and the Company during the report period and those that hadn’t been
completed execution by the end of the report period
√Applicable □ Not applicable
Type of Commit-m Commit- Implement-
Commitments Promisee Content of commitments
commitments ent date ment term ation
Commitments The original The Company has implemented share By the end of
Commitment
for non-tradable merger reform in May 2006. Till June the report
of share 2006-5-22 N/A
Share Merger shareholder 2009, the share of the original period, the
reduciton
Reform Shenzhen non-tradable shareholders which above
24
CSG Semi-annual Report 2018
International holding over 5% total shares of the shareholders
Holdings (SZ) Company had all released. Therein, the of the
Limited and Xin original non-tradable shareholder Company had
Tong Chan Shenzhen International Holdings (SZ) strictly carried
Industrial Limited and Xin Tong Chan Industrial out their
Development Development (Shenzhen) Co., Ltd. both promises.
(Shenzhen) Co., are wholly-funded subsidiaries to
Ltd. Shenzhen International Holdings
Limited (hereinafter Shenzhen
International for short) listed in Hong
Kong united stock exchange main
board. Shenzhen International made
commitment that it would strictly carry
out related regulations of Securities
Law, Administration of the Takeover of
Listed Companies Procedures and
Guiding Opinions on the Listed
Companies’ Transfer of Original Shares
Released from Trading Restrictions
issued by CSRC during implementing
share decreasingly-held plan and take
information disclosure responsibility
timely.
Foresea Life Insurance Co., Ltd.,
By the end of
Shenzhen Jushenghua Co., Ltd. and
During the report
Chengtai Group Co., Ltd. issued
the period period, the
Commitment detailed report of equity change on 29
Foresea Life when above
of horizontal June 2015, in which, they undertook to
Commitments in Insurance Co., Foresea shareholders
competition, keep independent from CSG in aspects
report of Ltd., Shenzhen Life of the
affiliate of personnel, assets, finance, 2015-6-29
acquisition or Jushenghua Co., remains Company had
Transaction organization set-up and business as long
equity change Ltd. and Chengtai the largest strictly carried
and capital as Foresea Life Insurance remained the
Group Co., Ltd. sharehold out their
occupation largest shareholder of CSG. Meanwhile,
er of the promises.
they made commitment on regularizing
Company
related transaction and avoiding
industry competition.
Commitments in
assets Not applicable
reorganization
Commitments in
initial public
Not applicable
offering or
re-financing
25
CSG Semi-annual Report 2018
During
CSG has promised not to provide loans the
The
and other forms of financial assistance implemen
Equity incentive The listed 2017-10-1 commitment
for restricted stocks for the incentive tation of
commitment company 0 is in normal
targets under this plan, including the equity
performance.
providing guarantees for their loans. incentive
plan
Other
commitments
for medium and Not applicable
small
shareholders
Completed on
Yes
time(Y/N)
If the
commitments is
not fulfilled on
Not applicable
time, explain the
reasons and the
next work plan
IV. Engaging and dismissing of CPA
Whether the semi-annual report has been audited or not
□ Yes √ No
The semi-annual report of the Company has not been audited.
V. Explanation from Board of Directors, Supervisory Committee and Independent Directors
(if applicable) for “Non-standard audit report” of the period that issued by CPA
□ Applicable √ Not applicable
VI. Explanation from Board of Directors for “Non-standard audit report” of the previous
year
□ Applicable √ Not applicable
VII. Issues related to bankruptcy and reorganization
□ Applicable √ Not applicable
VIII. Lawsuits
Significant lawsuits and arbitrations
□ Applicable √ Not applicable
26
CSG Semi-annual Report 2018
There were no significant lawsuits or arbitrations in the report period.
Other lawsuits
□ Applicable √ Not applicable
IX. Penalty and rectification
□ Applicable √ Not applicable
No penalty or rectification for the Company in the report period.
X. Integrity of the Company and its controlling shareholders and actual controllers
□ Applicable √ Not applicable
XI. Implementation of the Company’s stock incentive plan, employee stock ownership plan or
other employee incentives
√ Applicable □ Not applicable
On Oct. 10, 2017, the third meeting of the company's eighth session of the board of directors deliberated and approved 2017 A-share
Restricted Stock Incentive Plan (Draft) of CSG and its abstract, the Implementation Evaluation and Management Measures of 2017
A-share Restricted Stock Incentive Plan (Draft) of CSG and the Proposal to Apply for the Shareholders’ Meeting to Authorize the
Board of Directors to Handle the Issues Related to 2017 A-share Restricted Stock Incentive Plan. For the above-mentioned contents,
please refer to the Decision Bulletin of the Third Meeting of the Eighth Session of the Board of Directors (Notice No. 2017-063)
published in www.cninfo.com.cn on Oct. 11, 2017. The independent directors of the company have issued independent opinions on
the issues related to the company's 2017 restricted A-share incentive plan.
On Oct. 26, 2017, 2017 fifth temporary shareholders’ meeting of the company convened the above three resolutions. On Dec. 11,
2017, the 21st temporary meeting of the eighth session of the board of directors deliberated and approved the Resolution on Adjusting
the Granting List and Quantity of Targets of 2017 A-share Restricted Stock Incentive Plan. It is determined that 454 staff will be
granted with 97,511,654 restricted shares on Dec. 11, 2017. The first award price is RMB 4.28 /share and 17,046,869 restricted
shares will be reserved.
The granting of restricted shares was completed on Dec. 25, 2017. For detailed contents, refer to the Announcement on Completion of
the Granting of 2017 Restricted A-shares (Notice No.: 2017-079) published in www.cninfo.com.cn on Dec. 22, 2017.
According to the relevant provisions of the Accounting Standards for Enterprises, the implementation of restricted shares will have
certain impacts on the financial situation and operating results of the company in the coming years. The results will be based on the
annual audit report issued by the accounting firm.
XII.Major related transaction
1. Related transaction with routine operation concerned
□ Applicable √ Not applicable
In the report period, the Company did not have related transaction with routine operation concerned.
27
CSG Semi-annual Report 2018
2. Related transaction with acquisition of assets or equity, sales of assets or equity concerned
□ Applicable √ Not applicable
In the report period, the Company did not have related transaction with acquisition of assets or equity, sales of assets or equity
concerned.
3. Related transaction with jointly external investment concerned
□ Applicable √ Not applicable
In the report period, the Company did not have related transaction with jointly external investment concerned.
4. Credits and liabilities with related parties
□ Applicable √ Not applicable
There were no credits and liabilities with related parties in the report period.
5. Other major related transaction
□ Applicable √ Not applicable
There was no other major related transaction in the report period.
XIII.Particular about non-operating fund of listed company occupied by controlling
shareholder and its affiliated enterprises
□Applicable √Not applicable
It did not exist that non-operating fund of the listed company was occupied by controlling shareholder or its affiliated enterprises in
the report period.
XIV. Significant contracts and their implementation
1. Trusteeship, contract and leasing
(1) Trusteeship
□ Applicable √ Not applicable
No trusteeship for the Company in the report period.
(2) Contract
□ Applicable √ Not applicable
No contract for the Company in the report period.
28
CSG Semi-annual Report 2018
(3) Leasing
□ Applicable √ Not applicable
No leasing for the Company in the report period.
2. Major guarantees
√Applicable □ Not applicable
(1) Guarantee
Unit: RMB 0,000
Particulars about the external guarantee of the Company (Barring the guarantee for subsidiaries)
Actual date of Complete Guarantee
Name of the Related Actual
Guarantee happening (Date Guarantee Guarantee implement for related
Company Announcement guarantee
limit of signing type term ation or party (Yes or
guaranteed disclosure date limit
agreement) not no)
Guarantee of the Company for the subsidiaries
Actual date of Complete Guarantee
Name of the Related Actual
Guarantee happening (Date Guarantee Guarantee implement for related
Company Announcement guarantee
limit of signing type term ation or party (Yes or
guaranteed disclosure date limit
agreement) not no)
Chengdu CSG Joint liability
2017-07-31 5,000 2017-08-16 5,000 1 year No No
Glass Co.,Ltd. guarantee
Dongguan CSG
Joint liability
Architectural 2017-07-31 11,200 2017-08-11 10,000 1 year Yes No
guarantee
Glass Co., Ltd.
Dongguan CSG
Joint liability
Architectural 2017-01-13 18,000 2017-02-09 13,000 1 year Yes No
guarantee
Glass Co., Ltd.
Xianning CSG Joint liability
2017-07-31 7,000 2017-08-11 2,000 1 year Yes No
Glass Co., Ltd. guarantee
Xianning CSG Joint liability
2017-07-31 10,000 2017-09-12 1,000 1 year No No
Glass Co., Ltd. guarantee
Sichuan CSG
Energy Joint liability
2017-07-31 7,000 2017-08-11 2,000 1 year No No
Conservation guarantee
Glass Co., Ltd.
Sichuan CSG
Energy Joint liability
2017-01-23 5,000 2017-04-11 2,000 1 year Yes No
Conservation guarantee
Glass Co., Ltd.
Wujiang CSG Joint liability
2016-08-12 10,000 2017-03-07 5,000 1 year Yes No
Glass Co., Ltd. guarantee
29
CSG Semi-annual Report 2018
Wujiang CSG Joint liability
2017-11-27 10,000 2017-11-30 3,000 1 year Yes No
Glass Co., Ltd. guarantee
Wujiang CSG
East China Joint liability
2016-08-12 10,000 2017-04-28 6,000 1 year Yes No
Architectural guarantee
Glass Co., Ltd.
Wujiang CSG
East China Joint liability
2016-08-12 10,000 2018-04-20 6,000 1 year No No
Architectural guarantee
Glass Co., Ltd.
Wujiang CSG
East China Joint liability
2017-11-27 10,000 2017-11-30 3,000 1 year Yes No
Architectural guarantee
Glass Co., Ltd.
Wujiang CSG
East China Joint liability
2017-07-31 10,000 2017-09-14 10,000 1 year No No
Architectural guarantee
Glass Co., Ltd.
Dongguan CSG
Joint liability
Solar Glass Co., 2017-07-31 15,000 2017-8-11 2,800 1 year No No
guarantee
Ltd.
Yichang Nanbo Joint liability
2017-05-31 3,648 2017-06-02 3,600 1 year Yes No
Display Co., Ltd. guarantee
Tianjin CSG
Joint liability
Energy-Saving 2016-08-12 10,000 2017-02-14 2,000 1 year Yes No
guarantee
Glass Co., Ltd.
Dongguan CSG Joint liability
2017-05-22 15,000 2017-06-15 4,680 1 year No No
PV-tech Co., Ltd. guarantee
Yichang CSG
Joint liability
Polysilicon Co., 2017-08-07 6,600 2017-08-25 4,000 1 year No No
guarantee
Ltd.
Yichang CSG
Joint liability
Polysilicon Co., 2017-06-23 30,000 2017-07-10 5,000 1 year No No
guarantee
Ltd.
Qingyuan CSG
New
Joint liability
Energy-Saving 2017-09-15 5,000 2017-09-22 2,495 1 year No No
guarantee
Materials Co.,
Ltd.
Zhanjiang CSG 2017-07-31 9,000 2017-09-26 9,000 Joint liability 3 years No No
30
CSG Semi-annual Report 2018
New Energy Co., guarantee
Ltd.
Xianning CSG
Joint liability
Photovoltaic Glass 2016-08-12 30,000 2017-01-03 19,000 3 years No No
guarantee
Co., Ltd.
Xianning CSG
Joint liability
Photovoltaic Glass 2017-07-31 20,000 2017-09-07 3,400 3 years No No
guarantee
Co., Ltd.
Yichang Nanbo
Joint liability
Photoelectric 2017-05-22 5,472 2017-05-26 5,400 3 years No No
guarantee
Glass Co., Ltd.
Yichang Nanbo
Joint liability
Photoelectric 2016-12-14 2,432 2017-05-23 2,400 1 year Yes Yes
guarantee
Glass Co., Ltd.
Yichang Nanbo
Joint liability
Photoelectric 2017-05-22 10,032 2017-05-31 7,094 3 years No No
guarantee
Glass Co., Ltd.
Yichang CSG
Joint liability
Polysilicon Co., 2017-05-22 20,000 2017-06-22 13,043 3 years No No
guarantee
Ltd.
Dongguan CSG Joint liability
2017-11-27 20,000 2017-12-20 16,881 3 years No No
PV-tech Co., Ltd. guarantee
Wujiang CSG Joint liability
2017-08-28 30,000 2017-09-13 25,000 3 years No No
Glass Co., Ltd. guarantee
Xianning CSG Joint liability
2017-08-28 25,000 2017-09-18 18,751 3 years No No
Glass Co., Ltd. guarantee
Dongguan CSG
Joint liability
Solar Glass Co., 2017-08-07 20,000 2017-09-22 18,500 3 years No No
guarantee
Ltd.
Yichang CSG
Joint liability
Polysilicon Co., 2017-06-23 20,000 2017-06-28 16,049 3 years No No
guarantee
Ltd.
Sichuan CSG
Energy Joint liability
2017-09-25 15,000 2017-09-30 11,250 3 years No No
Conservation guarantee
Glass Co., Ltd.
Hebei CSG Glass Joint liability
2017-10-10 20,000 2017-10-30 16,881 3 years No No
Co., Ltd. guarantee
Chengdu CSG Joint liability
2017-09-25 20,000 2017-09-28 15,929 3 years No No
Glass Co.,Ltd. guarantee
31
CSG Semi-annual Report 2018
Dongguan CSG
Joint liability
Architectural 2017-01-13 18,000 2017-02-09 13,000 1 year No No
guarantee
Glass Co., Ltd.
Wujiang CSG Joint liability
2017-08-28 10,000 2017-09-20 2,000 1 year No No
Glass Co., Ltd. guarantee
Wujiang CSG
East China Joint liability
2017-11-27 10,000 2018-02-12 1,000 1 year No No
Architectural guarantee
Glass Co., Ltd.
Wujiang CSG
East China Joint liability
2017-11-27 10,000 2018-06-22 1,000 1 year No No
Architectural guarantee
Glass Co., Ltd.
Wujiang CSG
East China Joint liability
2017-11-27 10,000 2018-04-19 1,000 1 year No No
Architectural guarantee
Glass Co., Ltd.
Yichang CSG
Joint liability
Polysilicon Co., 2017-06-23 30,000 2017-07-10 5,000 1 year No No
guarantee
Ltd.
Xianning CSG
Joint liability
Photovoltaic Glass 2017-07-31 20,000 2017-09-07 5,000 3 years No No
guarantee
Co., Ltd.
Wujiang CSG Joint liability
2017-08-28 10,000 2017-09-20 5,000 1 year No No
Glass Co., Ltd. guarantee
Chengdu CSG Joint liability
2017-05-22 5,000 2018-04-02 4,500 1 year No No
Glass Co.,Ltd. guarantee
Sichuan CSG
Energy Joint liability
2017-05-02 5,000 2018-04-08 2,700 1 year No No
Conservation guarantee
Glass Co., Ltd.
Wujiang CSG Joint liability
2017-11-27 10,000 2018-03-07 2,000 1 year No No
Glass Co., Ltd. guarantee
Dongguan CSG Joint liability
2017-05-22 10,500 2017-06-15 5 3 years No No
PV-tech Co., Ltd. guarantee
Chengdu CSG Joint liability
2017-07-31 7,000 2017-08-11 1,500 1 year No No
Glass Co., Ltd. guarantee
Xianning CSG Joint liability
2017-07-31 7,000 2017-08-11 2,000 1 year No No
Glass Co., Ltd. guarantee
Wujiang CSG 2018-03-09 10,000 2018-06-28 3,500 Joint liability 1 year No No
32
CSG Semi-annual Report 2018
Glass Co., Ltd. guarantee
Wujiang CSG Joint liability
2017-08-28 10,000 2017-09-20 1,000 1 year No No
Glass Co., Ltd. guarantee
Dongguan CSG
Joint liability
Solar Glass Co., 2017-11-27 3,200 2018-06-14 3,000 1 year No No
guarantee
Ltd.
Dongguan CSG
Joint liability
Solar Glass Co., 2017-09-15 4,000 2017-10-13 4,000 1 year No No
guarantee
Ltd.
Tianjin CSG
Joint liability
Energy-Saving 2018-04-09 5,000 2018-06-22 2,000 1 year No No
guarantee
Glass Co., Ltd.
Xianning CSG
Joint liability
Energy-Saving 2017-07-31 7,000 2017-08-11 3,000 1 year No No
guarantee
Glass Co., Ltd.
China Southern
Joint liability
Glass (Hong 2018-06-20 6,009 2018-06-25 6,009 1 year No No
guarantee
Kong) Limited
Total amount of actual
Total amount of approving
occurred guarantee for
guarantee for subsidiaries in report 21,009
subsidiaries in report period 359,367
period (B1)
(B2)
Total balance of actual
Total amount of approved
guarantee for subsidiaries at
guarantee for subsidiaries at the 585,813
the end of reporting period 307,367
end of reporting period (B3)
(B4)
Guarantee of subsidiaries for subsidiaries
Guarante
Related
Actual date of Complete e for
Announce Actual
Name of the Company Guarantee happening (Date Guarantee Guarantee implemen related
ment guarantee
guaranteed limit of signing type term tation or party
disclosure limit
agreement) not (Yes or
date
no)
Dongguan CSG Joint liability
2017-05-22 15,000 2017-06-15 4,680 1 year No Yes
PV-tech Co., Ltd. guarantee
Dongguan CSG Joint liability
2017-05-22 10,500 2017-06-15 5 3 years No Yes
PV-tech Co., Ltd. guarantee
Total amount of actual
Total amount of approving
occurred guarantee for
guarantee for subsidiaries in report 0 4,685
subsidiaries in report period
period (C1)
(C2)
Total amount of approved Total balance of actual
25,500 4,685
guarantee for subsidiaries at the guarantee for subsidiaries at
33
CSG Semi-annual Report 2018
end of reporting period (C3) the end of reporting period
(C4)
Total amount of guarantee of the Company (total of three abovementioned guarantee)
Total amount of approving Total amount of actual
guarantee in report period 21,009 occurred guarantee in report 364,052
(A1+B1+C1) period (A2+B2+C2)
Total amount of approved Total balance of actual
guarantee at the end of report 611,313 guarantee at the end of report 312,052
period (A3+B3+C3) period (A4+B4+C4)
The proportion of the total amount of actual guarantee in the net
35.50%
assets of the Company (that is A4+ B4+C4)
Including:
Amount of guarantee for shareholders, actual controller and its
0
related parties(D)
The debts guarantee amount provided for the guaranteed parties
0
whose assets-liability ratio exceed 70% directly or indirectly(E)
Proportion of total amount of guarantee in net assets of the
0
Company exceed 50%(F)
Total amount of the aforesaid three guarantees(D+E+F) 0
The Company shall bear joint and several liabilities in guarantee
Explanations on possibly bearing joint and several liquidating
range if the subsidiaries fail to fulfill the obligation of
responsibilities for undue guarantees (if any)
repayment.
Explanations on external guarantee against regulated procedures Nil
(2) Illegal external guarantee
□ Applicable √ Not applicable
No illegal external guarantee in the report period.
3. Other material contracts
□ Applicable √ Not applicable
No other material contracts for the Company in the report period.
XV. Social responsibilities
1. Significant environmental situation
Name of Name of Numb Exhaust Implementatio Approved
Way of Emission Total Excessive
Company or major er of vent n of pollutant total
emission concentration emission emissions
subsidiary pollutants Exhau distributio emission emission
34
CSG Semi-annual Report 2018
and st n standards
characteristi vent
c
contaminant
s
《Emission st Particulate
Discharge
andard of air s:96.82t/a;
Dust\Soot\ after the Dust≤30mg/m; Particulates:
Xianning Chimney, pollutants fo SO2:636.5 Reach the
SO2\ treatment of soot≤40 mg/m; 19.6t;
CSG Glass 16 Exhaust r flat glass in t/a; discharge
Nitrogen denitrificati SO2≤200 mg/m; SO2:99.3t;
Co., Ltd. gas outlet dustry》 Nitrogen standard
oxide on and dust NOx≤350 mg/m NOx:233.5t
(GB26453-20 oxides:
removal
11) 1113.89t/a
Particulate
《Emission st s:129.395t
Discharge Particulates:
andard of air /a;
Dust\ Soot\ after the Dust≤26.8mg/m; 38.347t;
Chengdu Chimney, pollutants fo SO2:1035. Reach the
SO2\ treatment of soot≤23.8 mg/m; SO2::433.32
CSG Glass 15 Exhaust r flat glass in 162t/a; discharge
Nitrogen denitrificati SO2≤263 mg/m; 6t;
Co., Ltd. gas outlet dustry》 Nitrogen standard
oxide on and dust NOx≤331.6 mg/m NOx:536.60
(GB26453-20 oxides:
removal 8t
11) 1811.536t/
a
《Emission
Standard for
Particulate
Discharge Air Pollutants
s:59.78t/a;
Dust\ Soot\ after the Particulates≤8.7 in Electronic Particulates:
Hebei CSG Chimney, SO2:498.1 Reach the
SO2\ treatment of mg/m Glass 2.46t;
Glass Co., 10 Exhaust 8t/a; discharge
Nitrogen denitrificati SO2≤50.3 mg/m; Industry》 SO2:14.27t;
Ltd. gas outlet Nitrogen standard
oxide on and dust NOx≤265.8 mg/m （DB13/2168 NOx:65.18t
oxides:
removal -2015）Hebei
982.2t/a
Local
Standard
Discharged
《Comprehen
to the
sive Sewage
sewage
Discharge
treatment
PH\COD\ Standard》 COD:198.
Yichang plant after Discharge COD:24.86t;
rd
Ammonia PH:6-9; Grade 3 47t/a; Reach the
CSG being outlets of Ammonia
nitrogen/flu 3 COD≤500mg/L; standard Ammonia discharge
Polysilicon treated by waste nitrogen:0.3
oride Fluoride≤10 mg/L (GB8978-199 nitrogen:2. standard
Co., Ltd. the water 5t
6), implement 49t/a
Company's
grade 1st
sewage
standard for
treatment
fluoride
station.
35
CSG Semi-annual Report 2018
《Emission st Particulate
Discharge
andard of air Particulates: s:76.91t/a;
Particulates\ after the Particulates≤20mg/
Wujiang Chimney, pollutants fo 13.1t; SO2:238.2 Reach the
SO2\ treatment of m; SO2≤200
CSG Glass 39 Exhaust r flat glass in SO2:28.1t; 8t/a; discharge
Nitrogen denitrificati mg/m; NOx≤300
Co., Ltd. gas outlet dustry》 NOx:194.76 Nitrogen standard
oxide on and dust mg/m
(GB26453-20 t oxides:
removal
11) 818.04t/a
《Emission st Particulate
Discharge
andard of air Particulates: s:34.85t/a;
Dongguan Dust\ Soot\ after the Dust≤5mg/m;
Chimney, pollutants fo 8.75t; SO2:300.9 Reach the
CSG Solar SO2\ treatment of soot≤10mg/m;
22 Exhaust r flat glass in SO2:104.49t; 9t/a; discharge
Glass Co., Nitrogen denitrificati SO2≤400 mg/m;
gas outlet dustry》 NOx:236.84 Nitrogen standard
Ltd. oxide on and dust NOx≤650 mg/m
(GB26453-20 t oxides:
removal
11) 535.67t/a
Discharged
to the Discharge
sewage Limits of
treatment Water
Dongguan PH:6~9; COD:5.4
plant after Discharge Pollutants in COD:0.37t;
CSG PH\COD\ COD≤16 mg/L; t/a; Reach the
being outlets of Guangdong Ammonia
Architectura Ammonia 1 Ammonia Ammonia discharge
treated by waste (DB44/26-200 nitrogen:0.0
l Glass Co., nitrogen nitrogen≤0.784 nitrogen:0. standard
the water 1), the second 18t
Ltd. mg/L 6 t/a
company's period, the
sewage first grade
treatment standard
station.
Waste water: Waste
The waste Discharge
COD:4.86t; water:
water is Limits of
2 Waste water: Ammonia
Waste discharged Water
SS≤50mg/L; Suspended
outlet nitrogen:0.1
water: after the Pollutants in
COD≤70 mg/L; matter:
s for 7t;
Fluoride treatment Guangdong
9.36t/a;
by the waste Discharge Ammonia (DB44/26-200
Fluoride:0.4
\COD\
Dongguan nitrogen≤10mg/L; 2t COD:14.0
Ammonia company's water outlets of 1), the second Reach the
CSG Fluoride≤8mg/L; 4t/a;
sewage and waste period, the Exhaust gas
nitrogen discharge
PV-tech station, and 18 water and Exhaust gas: first grade Nitrogen Ammonia standard
Co., Ltd. Exhaust 3
the exhaust outlet exhaust NOx≤30mg/m ; standard; oxide:9.325t nitrogen:1.
gas: s for gas HF≤3 ;
gas is Discharge 56t/a;
3 3
HF\NOx\H discharged exhau mg/m ;CL2≤5mg/m Standard of Fluoride:0.4
Fluoride:1.
CI\CL2\NH3 after st gas ;HCI≤5mg/m3;VOC Pollutants in 1t;
56t/a
\VOC treatment ≤30mg/m3; Battery Hydrogen
by the Industry(GB3 fluoride： Exhaust
company's 0484-2013);F 0.29t; gas
36
CSG Semi-annual Report 2018
exhaust gas or VOCs, refer Chlorine:
Nitrogen
treatment to implement 0.089t;
oxide:20.8
tower. the Emission Ammonia:0.
25t/a;
Standards for 674t;
Fluoride:1.
Furniture VOC:0.119t
5156t/a;
Manufacturing
Hydrogen
Industry
fluoride:1.
(DB44/814-20
0829t/a;
10), the
standard for Chlorine:0
the second .2363t/a;
stage; For
Ammonia:
NH3,
2.3312t/a;
implement the
Emission VOC:1.09
Standards for 86 t/a
Odor
Pollutants(GB
14554-93).
《Emission
Particulate
Discharge standard for
Dust≤30mg/m; s:8.2125t/a
Dust\ Soot\ after the air pollutants Particulates:
Hebei Panel Chimney, Soot≤20 ; Reach the
SO2\ treatment of in electronic 0.921t;SO2:
Glass Co. 5 Exhaust mg/m;SO2≤30 SO2:22t/a; discharge
Nitrogen denitrificati glass 0.041t;NOx
Ltd. gas outlet mg/m;NOx≤300mg Nitrogen standard
oxide on and dust industry》 :8.819t;
/m; oxide:39.4
removal (GB29495-20
t/a
13)
Construction and operation of pollution prevention and control facilities
The Company has built flue gas dust removal and denitrification system on production lines. The system runs normally, and the
emission of exhaust gas meets regulations.
The environmental impact assessment of construction projects and other environmental protection license
The new production line of light guide plate photoelectric materials of Xianning CSG Photoelectric Glass Co. Ltd. newly established
in 2017 has entered into the stage of trial production. Its pollution prevention and control facilities are running normally, and
environmental protection acceptance work is being carried out. The subsidiary companies have effectively carrying out the “Three
Simultaneous” procedures for all other new and old projects, and have been rewarded with the pollutant discharge license within the
validity period. They timely declared the pollutant discharge, carried out the monitoring and reporting of pollutant discharge and paid
the environmental tax.
Emergency response plan system of environment incident
In accordance with the national requirements, all subsidiary companies prepared emergency environmental response plan for
environment incident, organized and carried out expert evaluation and put on record in the local environmental protection department
as required, conducted the emergency drill against environmental incidents. And no major environmental incidents occurred in the
37
CSG Semi-annual Report 2018
first half of 2018.
Environmental self-monitoring scheme
In accordance with provisions of national laws and regulations and the requirements put forward in the assessment documents of the
environment impact of construction project and reply, the subsidiary companies built on-line monitoring equipment for waste water
and exhaust gas which are put into operation normally. They compared and reviewed the effectiveness of the on-line monitoring
facilities on a regular basis. Besides, they also entrusted the third-party units to carry out the manual monitoring of the environment and
fully monitor the discharge of the pollutants.
Other environmental information to be disclosed
The key monitored subsidiary companies above municipal level disclosed their environment protection status and made regular
updating through websites, display cards, environmental information platform and other ways.
Other information related to environment protection
CSG always attaches great importance to environmental protection work, actively fulfills its social responsibility, adheres to the
development road of energy saving, emission reduction, low carbon and environmental protection. In order to further reduce
pollutant emissions, many subsidiaries of the group have carried out the construction of desulfurization facilities in 2018. After such
facilities are completed and put into production, the emission concentration of sulfur dioxide will be further reduced substantially on
the basis of existing emission level which has met with standards, and the ultra-low emissions will be achieved step-by-step.
2. Performance of social responsibility for targeted poverty alleviation
No targeted poverty alleviation was carried out in the first half of the year, no follow-up plan for targeted poverty alleviation either.
XVI. Statement on other important matters
√Applicable □ Not applicable
1. Short-term Financing Bills
On Dec.14, 2016, the second extraordinary shareholders’ general meeting of 2016 of CSG deliberated and approved the proposal of
the offering and registration of short-term financing bills, and agreed the Company’s registration and issuance of short-term financing
bills with a total amount of RMB 2.7 billion, which could be issued by stages within period of validity of the registration according to
the Company’s actual demands for funds and the status of inter-bank funds. However, the term of each issue shall not be longer than
one year and the registered quota shall not exceed 40 percent of the Company’s net assets.
2. Ultra-short-term financing bills
On 14 May 2018, the 2017 Annual General Meeting of Shareholders’ deliberated and approved the proposal of application for
registration and issuance of ultra-short-term financing bills with registered capital of RMB 4 billion at most and validity within 2
years(This amount is not subject to a 40% net asset limit). which could be issued by stages within period of validity of the
registration according to the Company’s actual demands for funds and the status of inter-bank funds.
For details, please refer to www.chinabond.com.cn and www.chinamoney.com.cn.
3. Perpetual bonds
On April 15, 2016, the Shareholders’ General Meeting 2015 of CSG deliberated and approved the proposal of application for
registration and issuance of perpetual bonds, and agreed the Company to register and issue perpetual bonds with total amount of
38
CSG Semi-annual Report 2018
RMB 3.1 billion which could be issued by stages within period of validity of the registration according to the Company’s actual
demand for funds and the capital status of inter-bank market.
4. Medium-term notes
On December 10, 2014, the First Extraordinary Shareholders’ General Meeting 2014 of CSG Holding Co., Ltd deliberated and
approved the proposal of application for registeration and issuance of medium term notes with total amount of RMB 1.2 billion at
most. On May 21, 2015, National Association of Financial Market Institutional Investors (NAFMII) held the 32nd registration
meeting of 2015, in which NAFMII decided to accept the registration of the Company’s medium-term notes, amounting to RMB 1.2
billion and valid for two years. China Merchants Bank Co., Ltd. and Shanghai Pudong Development Bank Co., Ltd. were joint lead
underwriters of these medium-term notes which could be issued by stages within period of validity of the registration. On July 10,
2015, the Company issued the first batch of medium term notes with total amount of RMB 1.2 billion and valid term of 5 years at the
issuance rate of 4.94%, which will be redeemed on July 14, 2020.
On April 15, 2016, the Shareholders’ General Meeting of 2015 of CSG deliberated and approved the proposal of application for
registration and issuance of medium term notes with total amount of RMB 0.8 billion, which could be issued by stages within period
of validity of the registration according to the Company’s actual demands for funds and the status of inter-bank funds. On March 2,
2018, National Association of Financial Market Institutional Investors (NAFMII) held the 14th registration meeting of 2018, in which
NAFMII decided to accept the registration of the Company’s medium term notes, amounting to RMB 0.8 billion and valid for two
years. Shanghai Pudong Development Bank Co., Ltd. and China CITIC Bank Corporation Limited were joint lead underwriters of
these medium term notes which could be issued by stages within period of validity of the registration. On May 4, 2018, the Company
issued the first batch of medium-term notes with total amount of RMB 0.8 billion and valid term of 3 years at the issuance rate of 7%,
which will be redeemed on May 4, 2021.
On May 22, 2017, the Shareholders’ General Meeting of 2016 of CSG deliberated and approved the proposal of application for
registration and issuance of medium term notes with total amount of RMB 1 billion, which could be issued by stages within period of
validity of the registration according to the Company’s actual demands for funds and the status of inter-bank funds.
For details, please refer to www.chinabond.com.cn and www.chinamoney.com.cn.
XVII. Significant events of subsidiaries of the Company
□ Applicable √ Not applicable
39
CSG Semi-annual Report 2018
Section VI. Changes in Shares and Particulars about Shareholders
I. Changes in Share Capital
1. Changes in Share Capital
Unit: Share
Before the Change Increase/Decrease in the Change (+, -) After the Change
Capitalization
Proportion New shares Bonus Proportion
Amount of public Others Subtotal Amount
(%) issued shares (%)
reserve
I. Restricted shares 97,772,560 3.94% 14,665,883 14,665,883 112,438,443 3.94%
1. State-owned shares
2. State-owned legal
person’s shares
3. Other domestic shares 97,772,560 3.94% 14,665,883 14,665,883 112,438,443 3.94%
Including: Domestic
legal person’s shares
Domestic natural
97,772,560 3.94% 14,665,883 14,665,883 112,438,443 3.94%
person’s shares
4. Foreign shares
Including: Foreign legal
person’s shares
Foreign natural
person’s shares
II. Unrestricted shares 2,386,374,987 96.06% 357,956,248 357,956,248 2,744,331,235 96.06%
1. RMB Ordinary shares 1,509,517,397 60.76% 226,298,989 226,298,989 1,735,816,386 60.76%
2. Domestically listed
foreign shares 876,857,590 35.30% 131,657,259 131,657,259 1,008,514,849 35.30%
3. Overseas listed
foreign shares
4. Others
III.Total shares 2,484,147,547 100% 372,622,131 372,622,131 2,856,769,678 100%
Reasons for share changed
√ Applicable □ Not applicable
Due to the implementation of profit distribution and the capitalizing of common reserves proposal in 2017, the total shares of the
Company rose by 372,622,131 shares.
Approval of share changed
√ Applicable □ Not applicable
2017 profit distribution and the capitalization of capital reserve propose was deliberated and approved on the 5th Meeting of the 8th
Session of Board of Directors held on Apr. 20, 2018 and 2017 Annual General Meeting of Shareholders held on May 14, 2018.
Transfer of ownership of changes in shares
40
CSG Semi-annual Report 2018
√Applicable □Not applicable
The registration date of the profit distribution and the capitalizing of common reserves in 2017 was June 26, 2018, and the
ex-dividend date was June 27, 2018. A-shares transferred this time were directly credited to the A-shares securities account of
shareholders on June 27, 2018. The registration date of B-shares was June 29, 2018, and the ex-dividend date was June 27, 2018.
B-shares transferred this time were directly credited to the B-shares securities account of shareholders on June 29, 2018.
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 the latest year and period
√Applicable □Not applicable
Please refer to the main accounting data and financial indicators in this report for the details of the impact of stock changes.
Other information necessary to be disclosed or need to be disclosed under requirement from securities regulators
□Applicable √ Not applicable
2. Changes of restricted shares
√Applicable □ Not applicable
Unit: Share
Number of Number of Number of new Number of
Shareholder Restriction
shares restricted shares released shares restricted shares restricted Released date
s’ name reasons
at Period-begin in the Year in the Year at Period-end
Awarded equity
incentives on
According to the
December 11,
implementation of the
2017, and the
Company's restricted stock
restricted shares
equity incentive plan to
increased due to
implement the lifting of the
Chen Lin 3,207,639 0 481,146 3,688,785 the
restriction period, after the
implementation of
ban is lifted, the shares
the 2017 profit
held by the executives will
distribution and
be locked according to
capital reserve
relevant policies.
fund conversion
scheme
Awarded equity According to the
incentives on implementation of the
December 11, Company's restricted stock
2017, and the equity incentive plan to
Lu Wenhui 2,405,729 0 360,859 2,766,588 restricted shares implement the lifting of the
increased due to restriction period, after the
the ban is lifted, the shares
implementation of held by the executives will
the 2017 profit be locked according to
41
CSG Semi-annual Report 2018
distribution and relevant policies.
capital reserve
fund conversion
scheme
Executive locked
shares and
Executive locked stocks
awarded equity
will be locked up for a long
incentives on
time. According to the
December 11,
implementation of the
2017 and the
Company's restricted stock
restricted shares
equity incentive plan to
Li Weinan 2,549,920 0 382,487 2,932,407 increased due to
implement the lifting of the
the
restriction period, after the
implementation of
ban is lifted, the shares
the 2017 profit
added will be locked
distribution and
according to relevant
capital reserve
policies.
fund conversion
scheme
Awarded equity
incentives on
According to the
December 11,
implementation of the
2017, and the
Company's restricted stock
restricted shares
equity incentive plan to
increased due to
implement the lifting of the
He Jin 1,600,000 0 240,000 1,840,000 the
restriction period, after the
implementation of
ban is lifted, the shares
the 2017 profit
held by the executives will
distribution and
be locked according to
capital reserve
relevant policies.
fund conversion
scheme
Awarded equity
According to the
incentives on
implementation of the
December 11,
Company's restricted stock
2017, and the
equity incentive plan to
restricted shares
implement the lifting of the
Yang Xinyu 2,291,170 0 343,675 2,634,845 increased due to
restriction period, after the
the
ban is lifted, the shares
implementation of
held by the executives will
the 2017 profit
be locked according to
distribution and
relevant policies.
capital reserve
42
CSG Semi-annual Report 2018
fund conversion
scheme
Awarded equity
incentives on
December 11,
2017, and the
According to the
restricted shares
Core implementation of the
increased due to
Managemen Company's restricted stock
62,410,653 0 9,361,591 71,772,244 the
t Team (108 equity incentive plan to
implementation of
persons) implement the lifting of the
the 2017 profit
restriction period
distribution and
capital reserve
fund conversion
scheme
Awarded equity
incentives on
December 11,
2017, and the
Technology According to the
restricted shares
and implementation of the
increased due to
Business Company's restricted stock
23,305,293 0 3,495,802 26,801,095 the
Backbone equity incentive plan to
implementation of
(341 implement the lifting of the
the 2017 profit
persons) restriction period
distribution and
capital reserve
fund conversion
scheme
Executive locked
shares increased
due to the
implementation of
Zhao Peng 2,156 0 323 2,479 the 2017 profit Long-term locked
distribution and
capital reserve
fund conversion
scheme
Total 97,772,560 0 14,665,883 112,438,443 -- --
II. Issuance and listing of Securities
□Applicable √ Not applicable
43
CSG Semi-annual Report 2018
III.Amount of shareholders of the Company and particulars about shares holding
Unit: share
Total amount of shareholders Total amount of the preferred shareholders who have resumed
153,651 0
at the end of the report period the voting right at end of report period (if applicable)
Shareholder with above 5% shares held or top ten shareholders
Amount Number of share
Proporti Total shares
of Amount of pledged/frozen
Nature of on of held at the Changes in
Full name of Shareholders restricte un-restricted
shareholder shares end of report report period Share
d shares shares held Amount
held (%) period status
held
Domestic non
Foresea Life Insurance Co., Ltd.
state-owned 14.84% 423,988,067 55,302,791 423,988,067
– Haili Niannian
legal person
Domestic non
Foresea Life Insurance Co., Ltd.
state-owned 3.77% 107,659,097 14,042,491 107,659,097
– Universal Insurance Products
legal person
Domestic non
Pledge
Shenzhen Jushenghua Co., Ltd. state-owned 2.76% 78,757,679 10,272,741 78,757,679 78,757,652
[Note]
legal person
Domestic non
Foresea Life Insurance Co., Ltd.
state-owned 2.06% 58,877,419 7,679,663 58,877,419
– Own Fund
legal person
Central Huijin Asset State-owned
1.84% 52,650,444 6,867,449 52,650,444
Management Ltd. legal person
China Galaxy International
Foreign legal
Securities (Hong Kong) Co., 1.31% 37,313,064 4,917,019 37,313,064
person
Limited
China Merchants Securities State-owned
1.02% 29,155,288 3,098,580 29,155,288
(HK) Co., Limited legal person
Domestic non
Shenzhen International Holdings
state-owned 0.93% 26,450,000 3,450,000 26,450,000
(SZ) Limited
legal person
Domestic
Wang Heng 0.63% 17,939,087 4,433,546 17,939,087
natural person
VANGUARD EMERGING
Foreign legal
MARKETS STOCK INDEX 0.61% 17,563,848 2,290,937 17,563,848
person
FUND
Strategic investors or general legal person N/A
becomes top 10 shareholders due to shares
44
CSG Semi-annual Report 2018
issued (if applicable)
Explanation on associated relationship among Among shareholders as listed above, Foresea Life Insurance Co., Ltd.-Haili
the aforesaid shareholders Niannian, Foresea Life Insurance Co., Ltd.-Universal Insurance Products, Foresea
Life Insurance Co., Ltd.-Own Fund are all held by Foresea Life Insurance Co.,
Ltd. Shenzhen Jushenghua Co., Ltd. is a related legal person of Foresea Life
Insurance Co., Ltd. and Chengtai Group Co., Ltd., another related legal person of
Foresea Life Insurance Co., Ltd, which held 36,534,458 shares via China Galaxy
International Securities (Hong Kong) Co., Limited.
Except for the above-mentioned shareholders, it is unknown whether other
shareholders belong to related party or have associated relationship regulated by
the Management Regulation of Information Disclosure on Change of
Shareholding for Listed Companies.
Particular about top ten shareholders with un-restrict shares held
Type of shares
Shareholders’ name Amount of un-restrict shares held at year-end
Type Amount
Foresea Life Insurance Co., Ltd. –
423,988,067 RMB ordinary shares 423,988,067
Haili Niannian
Foresea Life Insurance Co., Ltd. –
107,659,097 RMB ordinary shares 107,659,097
Universal Insurance Products
Shenzhen Jushenghua Co., Ltd. 78,757,679 RMB ordinary shares 78,757,679
Foresea Life Insurance Co., Ltd. –
58,877,419 RMB ordinary shares 58,877,419
Own Fund
Central Huijin Asset Management
52,650,444 RMB ordinary shares 52,650,444
Ltd.
China Galaxy International
Domestically listed foreign
Securities (Hong Kong) Co., 37,313,064 37,313,064
shares
Limited
China Merchants Securities (HK) Domestically listed foreign
29,155,288 29,155,288
Co., Limited shares
Shenzhen International Holdings (SZ)
26,450,000 RMB ordinary shares 26,450,000
Limited
Wang Heng 17,939,087 RMB ordinary shares 17,939,087
VANGUARD EMERGING Domestically listed foreign
17,563,848 17,563,848
MARKETS STOCK INDEX FUND shares
Among shareholders as listed above, Foresea Life Insurance Co., Ltd.-Haili Niannian, Foresea
Statement on associated relationship
Life Insurance Co., Ltd.-Universal Insurance Products, Foresea Life Insurance Co., Ltd.-Own
or consistent action among the
Fund are all held by Foresea Life Insurance Co., Ltd. Shenzhen Jushenghua Co., Ltd. is a
above shareholders:
related legal person of Foresea Life Insurance Co., Ltd. and Chengtai Group Co., Ltd., another
45
CSG Semi-annual Report 2018
related legal person of Foresea Life Insurance Co., Ltd, which held 36,534,458 shares via
China Galaxy International Securities (Hong Kong) Co., Limited.
Except for the above-mentioned shareholders, It is unknown whether other shareholders
belong to related party or have associated relationship regulated by the Management
Regulation of Information Disclosure on Change of Shareholding for Listed Companies.
Explanation on shareholders
involving margin business (if N/A
applicable)
Note: On July 13, 2018, the Company received the notification letter from Shenzhen Jushenghua Co., Ltd, which indicated that the
78,757,652 unrestricted A-shares of CSG pledged by Jushenghua to China Galaxy Securities Co., Ltd had been released on July 12,
2018 and the releasing procedures of pledge has been completed in Shenzhen Branch of China Securities Depository and Clearing
Co., Ltd. For detailed contents, please refer to the Announcement of Releasing Pledge of Shares Held by Shareholders ((Notice No. :
2018-034) issued on July 14, 2018.
Whether the top ten shareholders or top ten shareholders with un-restrict shares carried out buy back deals in the report period
□Yes √ No
IV. Changes of controlling shareholder or actual controller
Changes of controlling shareholders in the report period
□Applicable √ Not applicable
Changes of actual controller in the report period
□Applicable √ Not applicable
46
CSG Semi-annual Report 2018
Section VII. Particulars about Directors, Supervisors, Senior
Executives and Employees
I. Changes of shares held by directors, supervisors and senior executives
√ Applicable □ Not applicable
The
The The The The number
number of
number of number of number of The number of of restricted The number of
shares held
increase of decrease of shares held restricted shares shares restricted
Working at the
Name Title holding in holding in at the end granted at the granted in shares granted
status beginning
the current the current of the beginning of the the current in the current
of the
period period period period (shares) period period (shares)
period
(shares) (shares) (shares) (shares)
(shares)
Chairman of Currently
Chen Lin 3,207,639 3,688,785 3,207,639 3,688,785
the Board in office
Deputy
Chairman of Currently
Wang Jian
the Board, in office
CEO
Jin Independent Currently
Qingjun Director in office
Zhan Independent Currently
Weizai Director in office
Zhu Independent Currently
Guilong Director in office
Zhang Currently
Director
Jinshun in office
Ye Currently
Director
Weiqing in office
Cheng Currently
Director
Xibao in office
Chairman of
Zhang the Currently
Wandong Supervisory in office
Board
Currently
Li Xinjun Supervisor
in office
Zhao Peng Staff Currently 2,875 3,306
47
CSG Semi-annual Report 2018
Supervisor in office
Executive
Currently
Lu Wenhui Vice 2,405,729 2,766,588 2,405,729 2,766,588
in office
President
Vice Currently
Li Weinan 2,636,170 3,031,595 2,636,170 3,031,595
president in office
Vice Currently
Li Cuixu
president in office
Vice Currently
He Jin 1,600,000 1,840,000 1,600,000 1,840,000
president in office
Yang Secretary of Currently
2,291,170 2,634,845 2,291,170 2,634,845
Xinyu the Board in office
Pan Director & Post
Yonghong CEO leaving
Total -- -- 12,143,583 0 0 13,965,119 12,140,708 0 13,961,813
II. Changes of directors, supervisors and senior executives
√ Applicable □ Not applicable
Name Title Type Date Reason
Senior management employed by the Board of
Li Cuixu Vice president Be employed 2018-04-08
Directors
Senior management employed by the Board of
He Jin Vice president Be employed 2018-04-08
Directors
Pan Yonghong Director，CEO Post leaving 2018-06-29 Resigned
Senior management employed by the Board of
Wang Jian CEO Be employed 2018-07-02
Directors
48
CSG Semi-annual Report 2018
Section VIII. Financial Report
(I) Auditors’ Report
Whether the Semi-annual Report has been audited or not
□ Yes √ No
(II) Financial Statements
All figures in the Notes to the Financial Statements are in RMB.
1. Consolidated Balance Sheet
Prepared by CSG Holding Co., Ltd.
Unit: RMB
Item Ending balance Beginning balance
Current assets
Cash at bank and on hand 3,372,045,169 2,462,605,764
Notes receivable 789,078,376 552,232,420
Accounts receivable 707,375,368 638,238,290
Advances to suppliers 122,002,548 143,848,023
Other receivables 209,270,387 205,939,019
Inventories 713,622,649 685,895,317
Assets classified as held for sale 45,983,520 45,983,520
Other current assets 178,803,755 200,847,989
Total current assets 6,138,181,772 4,935,590,342
Non-current assets
Fixed assets 11,494,297,683 11,540,769,697
Construction in progress 1,190,859,428 1,417,624,618
Intangible assets 1,033,563,687 1,047,222,407
Development expenditure 71,977,914 61,365,537
Goodwill 397,392,156 397,392,156
Long-term prepaid expenses 12,251,997 2,223,397
Deferred tax assets 100,120,499 80,872,862
Other non-current assets 86,166,620 51,941,352
Total non-current assets 14,386,629,984 14,599,412,026
TOTAL ASSETS 20,524,811,756 19,535,002,368
49
CSG Semi-annual Report 2018
Current liabilities
Short-term borrowings 3,949,419,972 3,704,630,909
Notes payable 208,201,622 213,401,622
Accounts payable 1,331,128,942 1,400,166,042
Advances from customers 183,976,533 195,563,465
Employee benefits payable 182,613,590 272,170,660
Taxes payable 107,612,699 111,996,764
Interest payable 73,371,196 34,032,740
Dividend payable 4,875,583
Other payables 620,540,633 619,324,354
Current portion of non-current liabilities 941,647,396 904,261,397
Other current liabilities 300,000 300,000
Total current liabilities 7,603,688,166 7,455,847,953
Non-current liabilities
Long-term borrowings 2,364,000,000 1,554,120,000
Long term payable 866,214,017 1,161,794,247
Deferred income 550,026,465 562,701,103
Deferred tax liabilities 24,419,058 20,915,954
Total non-current liabilities 3,804,659,540 3,299,531,304
Total liabilities 11,408,347,706 10,755,379,257
Shareholders’ equity
Share capital 2,856,769,678 2,484,147,547
Capital surplus 1,029,395,134 1,306,381,765
Less: Treasury shares 412,640,249 417,349,879
Other comprehensive income 2,640,961 1,948,943
Special reserve 3,988,036 3,224,938
Surplus reserve 920,592,332 920,592,332
Undistributed profits 4,388,437,956 4,159,642,227
Total equity attributable to shareholders of
8,789,183,848 8,458,587,873
parent company
Minority shareholders' equity 327,280,202 321,035,238
Total shareholders' equity 9,116,464,050 8,779,623,111
TOTAL LIABILITIES AND SHAREHOLDERS’
20,524,811,756 19,535,002,368
EQUITY
50
CSG Semi-annual Report 2018
Legal Representative:Chen Lin Principal in charge of accounting:Wang Jian Principal of the financial department:Wang Wenxin
2. Balance Sheet of the Parent Company
Unit: RMB
Item Ending balance Beginning balance
Current assets
Cash at bank and on hand 2,594,187,340 1,681,877,320
Advances to suppliers 2,839,117 146,132
Other receivables 2,811,139,401 2,400,334,816
Total current assets 5,408,165,858 4,082,358,268
Non-current assets
Long-term receivables 1,200,000,000 1,200,000,000
Long-term equity investments 4,896,117,578 4,795,987,652
Fixed assets 20,923,085 22,182,246
Construction in progress 2,261,607
Intangible assets 1,079,827 1,742,109
Other non-current assets 533,718 2,132,041
Total non-current assets 6,120,915,815 6,022,044,048
TOTAL ASSETS 11,529,081,673 10,104,402,316
Current liabilities
Short-term borrowings 2,850,000,000 2,600,000,000
Accounts payable 261,024 261,024
Employee benefits payable 23,615,615 40,856,313
Taxes payable 2,126,282 1,762,580
Interest payable 12,748,838 3,090,735
Dividends payable 4,875,583
Other payables 1,175,125,741 909,432,991
Non-current liabilities due within one year 180,000,000 180,000,000
Total current liabilities 4,248,753,083 3,735,403,643
Non-current liabilities
Long-term borrowings 2,000,000,000 1,200,000,000
Deferred income 185,584,400 186,526,280
Total non-current liabilities 2,185,584,400 1,386,526,280
Total liabilities 6,434,337,483 5,121,929,923
51
CSG Semi-annual Report 2018
Shareholders’ equity
Share capital 2,856,769,678 2,484,147,547
Capital surplus 1,174,222,448 1,451,209,079
Less:Treasury shares 412,640,249 417,349,879
Other comprehensive income
Surplus reserve 935,137,692 935,137,692
Undistributed profits 541,254,621 529,327,954
Total shareholders' equity 5,094,744,190 4,982,472,393
TOTAL LIABILITIES AND SHAREHOLDERS’
11,529,081,673 10,104,402,316
EQUITY
3. Consolidated Income Statement
Unit: RMB
Item Balance of this period Balance of last period
I. Total revenue 5,471,169,598 4,944,337,861
Incl. Business income 5,471,169,598 4,944,337,861
II. Total business cost 5,073,729,591 4,502,642,030
Incl: Business cost 4,099,496,754 3,737,514,462
Tax and surcharge 71,930,546 61,745,775
Sales expense 172,217,254 156,344,731
Administrative expense 540,554,002 402,554,340
Financial expenses 185,877,426 143,374,027
Asset impairment loss 3,653,609 1,108,695
Plus: Income on disposal assets (“- “for loss) -567,830 -71,756
Other Income 21,863,800 23,674,234
III. Operational profit (“- “for loss) 418,735,977 465,298,309
Plus: non-operational income 2,595,795 15,971,862
Less: non-operational expenditure 878,551 603,102
IV. Total profit (“- “for loss) 420,453,221 480,667,069
Less: Income tax expenses 61,371,104 80,453,021
V. Net profit (“- “for net loss) 359,082,117 400,214,048
(I) Net income from continuing operations (“-” for
359,082,117 400,214,048
net loss)
Attributable to shareholders of parent company 352,837,153 392,992,163
52
CSG Semi-annual Report 2018
Minority shareholder gains and losses 6,244,964 7,221,885
VI. Other comprehensive income net after tax 692,018 -1,076,264
Other comprehensive income net after tax
692,018 -1,076,264
attributable to shareholders of parent company
Other comprehensive income items which will be
692,018 -1,076,264
reclassified subsequently to profit or loss
Differences on translation of foreign currency
692,018 -1,076,264
financial statements
VII. Total comprehensive income 359,774,135 399,137,784
Total comprehensive income attributable to
353,529,171 391,915,899
shareholders of parent company
Total comprehensive income attributable to
6,244,964 7,221,885
minority shareholders
VIII. Earnings per share:
(I) Basic earnings per share 0.13 0.14
(II) Diluted earnings per share 0.12 0.14
Legal Representative:Chen Lin Principal in charge of accounting:Wang Jian Principal of the financial department:Wang Wenxin
4. Income Statement of the Parent Co.
Unit: RMB
Item Balance of this period Balance of last period
I. Revenue 30,709,068 27,295,266
Less: Business cost
Tax and surcharge 246,465 5,136,944
Sales expense
Administrative expense 97,263,171 70,540,224
Financial expenses 29,932,558 19,800,295
Asset impairment loss -46,118 7,706
Plus: Investment income (“- “for loss) 231,537,606
Income on disposal assets (“- “for loss) 2,440
Other Income 991,880 18,000
II. Operating profit 135,844,918 -68,171,903
Add: Non-operating revenue 123,450 794,380
Less: Non-operating expenses 277
III. Total profit (“- “for loss) 135,968,091 -67,377,523
53
CSG Semi-annual Report 2018
Less: Income tax (expenses)/revenue
IV. Net profit (“- “for loss) 135,968,091 -67,377,523
Net profit for continuing operations(“- “for
135,968,091 -67,377,523
loss)
V. Total comprehensive income 135,968,091 -67,377,523
VI. Earnings per share
(I) Basic earnings per share
(II) Diluted earnings per share
5. Consolidated Cash Flow Statement
Unit: RMB
Item Balance of this period Balance of last period
I. Cash flows from operating activities
Cash received from sales of goods or rendering of
5,795,543,089 5,472,732,654
services
Refund of taxes and surcharges 14,619,913 7,273,335
Cash received relating to other operating activities 63,866,925 68,210,702
Sub-total of cash inflows 5,874,029,927 5,548,216,691
Cash paid for goods and services 3,670,547,749 3,278,955,888
Cash paid to and on behalf of employees 723,605,247 617,464,364
Payments of taxes and surcharges 404,939,607 380,644,776
Cash paid relating to other operating activities 310,373,236 251,262,209
Sub-total of cash outflows 5,109,465,839 4,528,327,237
Net cash flows from/(used in) operating
764,564,088 1,019,889,454
activities
II. Cash flows from investing activities
Net cash received from disposal of fixed assets,
3,466,136 44,820
intangible assets and other long-term assets
Cash received relating to other investing activities 3,725,277 24,039,200
Sub-total of cash inflows 7,191,413 24,084,020
Cash paid to acquire fixed assets, intangible assets
268,526,891 731,954,148
and other long-term assets
Cash paid relating to other investing activities 58,691,979 31,475,182
Sub-total of cash outflows 327,218,870 763,429,330
Net cash flows (used in)/from investing
-320,027,457 -739,345,310
activities
III. Cash flows from financing activities
Cash received from borrowings 2,870,654,472 1,452,919,750
54
CSG Semi-annual Report 2018
Cash received relating to other financing activities 16,276,534 1,666,591,530
Sub-total of cash inflows 2,886,931,006 3,119,511,280
Cash repayments of borrowings 1,777,250,000 2,924,757,768
Cash payments for interest expenses and
293,602,183 123,450,004
distribution of dividends or profits
Cash payments relating to other financing
362,001,673 3,451,507
activities
Sub-total of cash outflows 2,432,853,856 3,051,659,279
Net cash flows (used in)/from financing
454,077,150 67,852,001
activities
4. Effect of foreign exchange rate changes on cash
-113,600 -912,613
and cash equivalents
5. Net increase/(decrease) in cash and cash
898,500,181 347,483,532
equivalents
Add: Cash and cash equivalents at beginning
2,459,753,165 584,566,990
of current period
6. Cash and cash equivalents at end of current
3,358,253,346 932,050,522
period
6. Cash Flow Statement of the Parent Co.
Unit: RMB
Item Balance of this period Balance of last period
I. Cash flows from operating activities
Cash received relating to other operating activities 22,667,417 4,843,988
Sub-total of cash inflows 22,667,417 4,843,988
Cash paid to and on behalf of employees 63,635,591 33,652,141
Payments of taxes and surcharges 1,057,736 6,095,316
Cash paid relating to other operating activities 15,743,250 12,279,684
Sub-total of cash outflows 80,436,577 52,027,141
Net cash flows from/(used in) operating
-57,769,160 -47,183,153
activities
II. Cash flows from investing activities
Net cash received from disposal of fixed assets,
2,440
intangible assets and other long-term assets
Cash received relating to other investing activities 5,000,000
Sub-total of cash inflows 2,440 5,000,000
Cash paid to acquire fixed assets, intangible assets
4,544,893 565,260
and other long-term assets
Cash paid for investing activities 36,750,000
Sub-total of cash outflows 41,294,893 565,260
Net cash flows (used in)/from investing -41,292,453 4,434,740
55
CSG Semi-annual Report 2018
activities
III. Cash flows from financing activities
Cash received from borrowings 2,190,000,000 990,693,638
Cash received relating to other financing activities 125,399,471 1,806,455,260
Sub-total of cash inflows 2,315,399,471 2,797,148,898
Cash repayments of borrowings 1,140,000,000 2,496,723,365
Cash payments for interest expenses and
164,279,306 2,213,425
distribution of dividends or profits
Sub-total of cash outflows 1,304,279,306 2,498,936,790
Net cash flows (used in)/from financing
1,011,120,165 298,212,108
activities
4. Effect of foreign exchange rate changes on cash
-1,253,410 855,016
and cash equivalents
5. Net increase/(decrease) in cash and cash
910,805,142 256,318,711
equivalents
Add: Cash and cash equivalents at beginning
1,680,672,390 301,637,933
of current period
6. Cash and cash equivalents at end of current
2,591,477,532 557,956,644
period
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CSG Semi-annual Report 2018
7. Statement of Change in Owners’ Equity (Consolidated)
Amount of this term
Unit: RMB
Amount of the Current Term
Owners’ Equity Attributable to the Parent Company
Minority
Item Other Total shareholders'
Capital Less: treasury Special Surplus Undistributed shareholders'
Share capital comprehensiv equity
surplus share reserves reserve profits equity
e income
I. Balance at the end of the previous
2,484,147,547 1,306,381,765 417,349,879 1,948,943 3,224,938 920,592,332 4,159,642,227 321,035,238 8,779,623,111
year
Plus: change of accounting policy
Correction of errors in previous
periods
II. Balance at the beginning of current
2,484,147,547 1,306,381,765 417,349,879 1,948,943 3,224,938 920,592,332 4,159,642,227 321,035,238 8,779,623,111
year
III. Amount of change in current term
372,622,131 -276,986,631 -4,709,630 692,018 763,098 228,795,729 6,244,964 336,840,939
(“- “for decrease)
(I) Total amount of the comprehensive
692,018 352,837,153 6,244,964 359,774,135
income
(II) Capital paid in and reduced by
95,635,500 -4,709,630 100,345,130
owners
1. Common shares invested by the
95,635,500 95,635,500
shareholders
2. Others -4,709,630 4,709,630
(III) Profit distribution -124,041,424 -124,041,424
57
CSG Semi-annual Report 2018
1. Appropriations to surplus reserves
2. Appropriations to owners (or
-124,041,424 -124,041,424
shareholders)
(IV) Internal carry-forward of owners’
372,622,131 -372,622,131
equity
New increase of capital (or share
372,622,131 -372,622,131
capital) from capital public reserves
(V) Specific reserve 763,098 763,098
1. Withdrawn for the period 4,150,167 4,150,167
2. Used in the period 3,387,069 3,387,069
IV. Balance at the end of this term
2,856,769,678 1,029,395,134 412,640,249 2,640,961 3,988,036 920,592,332 4,388,437,956 327,280,202 9,116,464,050
Amount of last year
Unit: RMB
Amount of the same period of last year
Owners’ Equity Attributable to the Parent Company
Minority Total
Item Other
Capital Less: treasury Surplus Undistributed shareholders' shareholders'
Share capital comprehensi Special reserves
surplus share reserve profits equity equity
ve income
I. Balance at the end of the previous
2,075,335,560 1,260,702,197 4,653,971 5,843,473 888,508,230 3,573,871,573 320,276,015 8,129,191,019
year
Plus: change of accounting policy
Correction of errors in previous periods
58
CSG Semi-annual Report 2018
II. Balance at the beginning of current
2,075,335,560 1,260,702,197 4,653,971 5,843,473 888,508,230 3,573,871,573 320,276,015 8,129,191,019
year
III. Amount of change in current term
408,811,987 45,679,568 417,349,879 -2,705,028 -2,618,535 32,084,102 585,770,654 759,223 650,432,092
(“- “for decrease)
(I) Total amount of the comprehensive
-2,705,028 825,388,312 3,247,723 825,931,007
income
(II) Capital paid in and reduced by
97,511,654 356,979,901 417,349,879 37,141,676
owners
1. Common shares invested by the
shareholders
2. Capital invested by the owners of
other equity instruments
3. Amounts of share-based payments
97,511,654 328,032,920 417,349,879 8,194,695
recognized in owners’ equity
4. Others 28,946,981 28,946,981
(III) Profit distribution 32,084,102 -239,617,658 -2,488,500 -210,022,056
1. Appropriations to surplus reserves 32,084,102 -32,084,102
2. Appropriations to general risk
provisions
3. Appropriations to owners (or
-207,533,556 -2,488,500 -210,022,056
shareholders)
(IV) Internal carry-forward of owners’
311,300,333 -311,300,333
equity
1.New increase of capital (or share
311,300,333 -311,300,333
capital) from capital public reserves
59
CSG Semi-annual Report 2018
(V) Specific reserve -2,618,535 -2,618,535
1. Withdrawn for the period 7,831,127 7,831,127
2. Used in the period 10,449,662 10,449,662
(VI) Others
IV. Balance at the end of this term 2,484,147,547 1,306,381,765 417,349,879 1,948,943 3,224,938 920,592,332 4,159,642,227 321,035,238 8,779,623,111
8. Statement of Change in Owners’ Equity (Parent Co.)
Amount of this term
Unit: RMB
Amount of the Current Term
Other Total
Item Less: treasury Surplus Undistributed
Share capital Capital surplus comprehensive Special reserves shareholders'
share reserve profits
income equity
I. Balance at the end of the previous year 2,484,147,547 1,451,209,079 417,349,879 935,137,692 529,327,954 4,982,472,393
Plus: change of accounting policy
Correction of errors in previous periods
II. Balance at the beginning of current
2,484,147,547 1,451,209,079 417,349,879 935,137,692 529,327,954 4,982,472,393
year
III. Amount of change in current term
372,622,131 -276,986,631 -4,709,630 11,926,667 112,271,797
(“- “for decrease)
(I) Total amount of the comprehensive
135,968,091 135,968,091
income
(II) Capital paid in and reduced by owners 95,635,500 -4,709,630 100,345,130
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CSG Semi-annual Report 2018
1. Amounts of share-based payments
95,635,500 95,635,500
recognized in owners’ equity
2. Others -4,709,630 4,709,630
(III) Profit distribution -124,041,424 -124,041,424
1. Appropriations to surplus reserves
2. Appropriations to owners (or
-124,041,424 -124,041,424
shareholders)
(IV) Internal carry-forward of owners’
372,622,131 -372,622,131
equity
New increase of capital (or share capital)
372,622,131 -372,622,131
from capital public reserves
IV. Balance at the end of this term 2,856,769,678 1,174,222,448 412,640,249 935,137,692 541,254,621 5,094,744,190
Amount of last year
Unit: RMB
Amount of the same period of last year
Other
Item Special Surplus Undistributed Total shareholders'
Share capital Capital surplus Less: treasury share comprehensive
reserves reserve profits equity
income
I. Balance at the end of the previous
2,075,335,560 1,405,529,511 903,053,590 448,104,587 4,832,023,248
year
Plus: change of accounting policy
Correction of errors in previous
periods
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CSG Semi-annual Report 2018
II. Balance at the beginning of current
2,075,335,560 1,405,529,511 903,053,590 448,104,587 4,832,023,248
year
III. Amount of change in current term
408,811,987 45,679,568 417,349,879 32,084,102 81,223,367 150,449,145
(“- “for decrease)
(I) Total amount of the comprehensive
320,841,025 320,841,025
income
(II) Capital paid in and reduced by
97,511,654 356,979,901 417,349,879 37,141,676
owners
1. Amounts of share-based payments
97,511,654 328,032,920 417,349,879 8,194,695
recognized in owners’ equity
2. Others 28,946,981 28,946,981
(III) Profit distribution 32,084,102 -239,617,658 -207,533,556
1. Appropriations to surplus reserves 32,084,102 -32,084,102
2. Appropriations to owners (or
-207,533,556 -207,533,556
shareholders)
(IV) Internal carry-forward of owners’
311,300,333 -311,300,333
equity
1.New increase of capital (or share
311,300,333 -311,300,333
capital) from capital public reserves
IV. Balance at the end of this term 2,484,147,547 1,451,209,079 417,349,879 935,137,692 529,327,954 4,982,472,393
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CSG Semi-annual Report 2018
III. Basic Information of the Company
CSG Holding Co Ltd (the “Company”) was incorporated in September 1984, known as China South Glass Company, as a joint
venture enterprise by Hong Kong China Merchants Shipping Co., LTD (香港招商局轮船股份有限公司), Shenzhen Building
Materials Industry Corporation (深圳建筑材料工业集团公司), China North Industries Corporation (中国北方工业深圳公司) and
Guangdong International Trust and Investment Corporation (广东国际信托投资公司). The Company was registered in Shenzhen,
Guangdong Province of the People's Republic of China and its headquarters is located in Shenzhen, Guangdong Province of the
People's Republic of China. The Company issued RMB-denominated ordinary shares (“A-share”) and foreign shares (“B-share”)
publicly in October 1991 and January 1992 respectively, and was listed on Shenzhen Stock Exchange on February 1992. As at June
30, 2018, the registered capital was RMB 2,856,769,678, with nominal value of RMB 1 per share.
The Company and its subsidiaries (collectively referred to as the “Group”) are mainly engaged in the manufacture and sales of
flat glass, architectural glass and other building energy - saving materials, polycrystalline silicon and solar module and the
construction and operation of photovoltaic plant as well as the manufacture and sales of electronic glass and display device etc.
The main subsidiaries included in the scope of consolidation this year are detailed in the notes.
The financial statements were authorised for issue by the Board of Directors on August 27, 2018.
IV. Basis of the preparation of financial statements
1. Basis of preparation
The financial statements are prepared in accordance with the Accounting Standards for Business Enterprises - Basic Standard, and
the specific accounting standards and other relevant regulations issued by the Ministry of Finance on 15 February 2006 and in
subsequent periods (hereafter collectively referred to as “the Accounting Standard for Business Enterprises” or “CAS”), and
Information Disclosure Rule No. 15 for Companies with Public Traded Securities - Financial Reporting General Provision issued by
China Security Regulatory Commission.
2. Going concern
As at June 30, 2018, the Group current liabilities exceed current assets about RMB 1,466 million and committed capital expenditure
of about RMB 218 million. The directors of the Company has assessed the following facts and conditions: a) the Group has been able
to generate positive operating cash flows in prior years and expect to do so in the next 12 months, From January to June 2018, the net
cash inflow from operation activities is approximately RMB 765 million; b) the Group has maintained good relationship with banks,
so the Group has been able to successfully renew the bank facilities upon the expiry. As at June 30, 2018, the Group had unutilised
banking facilities of approximately RMB 5.4 billion, among which long-term banking facilities were about RMB 251 million. In
addition, the shareholder of the Group or other appointed related parties are willing to provide the Group with RMB 2 billion
interest-free loan. The Group also has other sources of financing, such as issuing short-term bonds, ultra-short-term financing bonds
and medium-term notes. The directors are of view that the banking facilities and shareholder’s support above can meet the funding
requirements
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V. Significant accounting policies and accounting estimates
The Group determines its specific accounting policies and estimates according to manufacturing and operation feature. It mainly
reflected in provision for bad debts of receivables, inventory costing method, amortisation of property, plant and equipmentand
intangible assets, criteria for determining capitalised development expenditure, and timing for revenue recognition.
Please see Note for the key judgements adopted by the Group in applying important accounting policies.
1. Statement of compliance with the Accounting Standards for Business Enterprises
The financial statements of the Company for the first half year of 2018 truly and completely present the financial position as of June
30, 2018 and the operating results, cash flows and other information for the first half year of 2018 of the Group and the Company in
compliance with the Accounting Standards for Business Enterprises.
2. Accounting period
The Company’s accounting year starts on 1 January and ends on 31 December.
3. Operating cycle
The Company’s operating cycle starts on 1 January and ends on 31 December.
4. Recording currency
The recording currency is Renminbi (RMB). The economic environment of subsidiaries, Hong Kong Southern Glass Trading Limited
and China Southern Glass (Hong Kong) Limited, determines their recording currency is Hong Kong dollar. The recording currency in
this report is Renminbi (RMB).
5. Business combinations
(a)Business combinations involving entities under common control
The consideration paid and net assets obtained by the absorbing party in a business combination are measured at book value. The
difference between book value of the net assets obtained from the combination and book value of the consideration paid for the
combination is treated as an adjustment to capital surplus (share premium). If the capital surplus (share premium) is not sufficient to
absorb the difference, the remaining balance is adjusted against retained earnings. Costs directly attributable to the combination are
included in profit or loss in the period in which they are incurred. Transaction costs associated with the issue of equity or debt
securities for the business combination are included in the initially recognised amounts of the equity or debt securities.
(b) Business combinations involving entities not under common control
The cost of combination and identifiable net assets obtained by the acquirer in a business combination are measured at fair value at
the acquisition date. Where the cost of the combination exceeds the acquirer’s interest in the fair value of the acquiree’s identifiable
net assets, the difference is recognised as goodwill; where the cost of combination is lower than the acquirer’s interest in the fair
value of the acquiree’s identifiable net assets, the difference is recognised in profit or loss for the current period. Costs directly
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CSG Semi-annual Report 2018
attributable to the combination are included in profit or loss in the period in which they are incurred. Transaction costs associated
with the issue of equity or debt securities for the business combination are included in the initially recognised amounts of the equity
or debt securities.
6. Preparation of consolidated financial statements
The consolidated financial statements comprise the financial statements of the Company and all of its subsidiaries.
Subsidiaries are consolidated from the date on which the Group obtains control and are de-consolidated from the date that such
control ceases. For a subsidiary that is acquired in a business combination involving enterprises under common control, it is included
in the consolidated financial statements from the date when it, together with the Company, comes under common control of the
ultimate controlling party. The portion of the net profits realised before the combination date presented separately in the consolidated
income statement.
In preparing the consolidated financial statements, where the accounting policies and the accounting periods of the Company and
subsidiaries are inconsistent, the financial statements of the subsidiaries are adjusted in accordance with the accounting policies and
the accounting period of the Company. For subsidiaries acquired from business combinations involving enterprises not under
common control, the individual financial statements of the subsidiaries are adjusted based on the fair value of the identifiable net
assets at the acquisition date.
All significant intra-group balances, transactions and unrealised profits are eliminated in the consolidated financial statements. The
portion of subsidiaries’ equity and the portion of a subsidiaries’ net profits and losses and comprehensive incomes for the period not
attributable to Company are recognised as minority interests and presented separately in the consolidated financial statements under
equity, net profits and total comprehensive income respectively. Unrealised profits and losses resulting from the sales of assets by the
Company to its subsidiaries are fully eliminated against net profit attributable to shareholders of the parent company. Unrealised
profits and losses resulting from the sales of assets by a subsidiary to the Company are eliminated and allocated between net profit
attributable to shareholders of the parent company and non-controlling interests in accordance with the allocation proportion of the
parent company in the subsidiary. Unrealised profits and losses resulting from the sales of assets by one subsidiary to another are
eliminated and allocated between net profit attributable to shareholders of the parent company and non-controlling interests in
accordance with the allocation proportion of the parent in the subsidiary.
After the control over the subsidiary has been gained, whole or partial minority equities of the subsidiary owned by minority
shareholders are acquired from the subsidiary’s minority shareholders. In the consolidated financial statements, the subsidiary's assets
and liabilities are reflected with amount based on continuous calculation starting from the acquisition date or consolidation date.
Capital surplus is adjusted according to the difference between newly increased long-term equity investment arising from acquisition
of minority equity and the share of net assets calculated based on current shareholding ratio that the parent company is entitled to.
The share is subject to continuous calculation starting from the acquisition date or consolidation date. If the capital surplus (capital
premium or share capital premium) is not sufficient to absorb the difference, the remaining balance is adjusted against retained
earnings.
If the accounting treatment of a transaction which considers the Group as an accounting entity is different from that considers the
Company or its subsidiaries as an accounting entity, it is adjusted from the perspective of the Group.
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CSG Semi-annual Report 2018
7. Cash and cash equivalents
Cash and cash equivalents comprise cash on hand, deposits that can be readily drawn on demand, and short-term and highly liquid
investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.
8. Translating of foreign currency operations and foreign currency report form
(a) Foreign currency transaction
Foreign currency transactions are translated into RMB using the exchange rates prevailing at the dates of the transactions.
At the balance sheet date, monetary items denominated in foreign currencies are translated into RMB using the spot exchange rates
on the balance sheet date. Exchange differences arising from these translations are recognised in profit or loss for the current period,
except for those attributable to foreign currency borrowings that have been taken out specifically for the acquisition or construction
of qualifying assets, which are capitalised as part of the cost of those assets. Non-monetary items denominated in foreign currencies
that are measured at historical costs are translated at the balance sheet date using the spot exchange rates at the date of the
transactions. The effect of exchange rate changes on cash is presented separately in the cash flow statement.
(b) Translation of foreign currency financial statements
The asset and liability items in the balance sheets for overseas operations are translated at the spot exchange rates on the balance
sheet date. Among the shareholders’ equity items, the items other than “undistributed profits” are translated at the spot exchange rates
of the transaction dates. The income and expense items in the income statements of overseas operations are translated at the spot
exchange rates of the transaction dates. The differences arising from the above translation are presented separately in the
shareholders’ equity. The cash flows of overseas operations are translated at the spot exchange rates on the dates of the cash flows.
The effect of exchange rate changes on cash is presented separately in the cash flow statement.
9. Financial instrument
(a) Financial assets
(i) Classification of financial assets
Financial assets are classified into the following categories at initial recognition: financial assets at fair value through profit or loss,
receivables, available-for-sale financial assets and held-to-maturity investments. The classification of financial assets depends on the
Group’s intention and ability to hold the financial assets. The Group had no financial assets at fair value through profit or loss and
held-to-maturity investments for the period.
Receivables
Receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market.
Receivables comprise notes receivable, accounts receivable and other receivables.
Available-for-sale financial assets
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CSG Semi-annual Report 2018
Available-for-sale financial assets are non-derivative financial assets that are either designated in this category or not classified in any
of the other categories at initial recognition. Available-for-sale financial assets are included in other current assets on the balance
sheet if management intends to dispose of them within 12 months after the balance sheet date.
(ii) Recognition and measurement
Financial assets are recognised at fair value on the balance sheet when the Group becomes a party to the contractual provisions of the
financial instrument. The related transaction costs that are attributable to the acquisition of receivables and available-for-sale
financial assets are included in their initial recognition amounts.
Available-for-sale financial assets are subsequently measured at fair value. Investments in equity instruments are measured at cost
when they do not have a quoted market price in an active market and whose fair value cannot be reliably measured. Receivables are
measured at amortised cost using the effective interest method.
Gains or losses arising from change in fair value of available-for-sale financial assets are recognised directly in equity, except for
impairment losses and foreign exchange gains and losses arising from translation of monetary financial assets. When such financial
assets are derecognised, the cumulative gains or losses previously recognised directly into equity are recycled into profit or loss for
the current period. Interests on available-for-sale investments in debt instruments calculated using the effective interest method
during the period in which such investments are held and cash dividends declared by the investee on available-for-sale investments in
equity instruments are recognised as investment income, which is recognised in profit or loss for the period.
(iii) Impairment of financial assets
The Group assesses book values of financial assets at each balance sheet date. If there is objective evidence that a financial asset is
impaired, an impairment loss is provided for.
The objective evidence of impairment losses on financial assets refers to events that actually incurred after the initial recognition of
financial assets, have influence on the expected future cash flow from the financial assets and the influence can be reliably measured.
Objective evidence which indicates the occurrence of impairment for available-for-sale equity instruments includes significant or
non-temporary decrease of fair value of equity instruments investment. The Group conducts individual Checkion on each
available-for-sale equity instruments investment at balance sheet date, if the fair value of the available-for-sale equity instrument is
less than its initial investment cost for more than 50% (inclusive) or less than its initial investment cost continually for more than 1
year, that means impairment incurred; if the fair value of the available-for-sale equity instrument is less than its initial investment
cost for more than 20% (inclusive) but has not reached 50%, the Group will comprehensively consider other factors such as price
volatility to determine whether the equity instrument investment has been impaired. The Group calculates the initial investment cost
of initial available-for-sale equity instruments investment using the weighted average method.
When an impairment loss on a financial asset carried at amortised cost has occurred, the amount of loss is provided for at the
difference between the asset’s carrying amount and the present value of its estimated future cash flows (excluding future credit losses
that have not been incurred). If there is objective evidence that the value of the financial asset is recovered and the recovery is related
objectively to an event occurring after the impairment was recognised, the previously recognised impairment loss is reversed and the
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amount of reversal is recognised in profit or loss.
If an impairment loss on available-for-sale financial assets measured at fair value is incurred, the cumulative losses arising from the
decline in fair value that had been recognised directly in shareholders' equity are transferred out from equity and into impairment loss.
For an investment in debt instrument classified as available-for-sale on which impairment losses have been recognised, if, in a
subsequent period, its fair value increases and the increase can be objectively related to an event occurring after the impairment loss was
recognised in profit or loss, the previously recognised impairment loss is reversed into profit or loss for the current period. For an
investment in an equity instrument classified as available-for-sale on which impairment losses have been recognised, the increase in its
fair value in a subsequent period is recognised directly in equity.
(iv) Derecognition of financial assets
Financial assets are derecognised when: i) the contractual rights to receive the cash flows from the financial assets have expired; or ii) all
substantial risks and rewards of ownership of the financial assets have been transferred; or iii) the control over the financial asset has
been waived even if the Group does not transfer or retain nearly all of the risks and rewards relating to the ownership of a financial asset.
On derecognition of a financial asset, the difference between the carrying amount and the sum of the consideration received and the
cumulative changes in fair value that had been recognised directly in owner's equity, is recognised in profit or loss.
(b) Financial liabilities
Financial liabilities are classified into two categories at initial recognition: financial liabilities at fair value through profit or loss and other
financial liabilities. Other financial liabilities in the Group mainly include payables, borrowings and bonds payable.
The fair value change of financial liabilities at fair value through profit or loss is charged to income statement.
Payables comprise accounts payable, notes payable and other payables, which are recognised initially at fair value and measured
subsequently at amortised cost using the effective interest method.
Borrowings and bonds payable are recognised initially at fair value, net of transaction costs incurred, and subsequently measured at
amortised cost using the effective interest method.
Other financial liabilities within one year (including one year) is presented as current liabilities, while non-current financial liabilities due
with one year (including one year) is reclassified as non-current liabilities due within one year. Others are presented as non-current
liabilities.
A financial liability (or a part of a financial liability) is derecognised when all or part of the obligation is extinguished. The difference
between the carrying amount of a financial liability (or a part of financial liability) extinguished and the consideration paid is recognised
in the income statement.
(c) Determination of fair value of financial instruments
The fair value of a financial instrument that is traded in an active market is determined at the quoted price in the active market. The fair
value of a financial instrument that is not traded in an active market is determined by using a valuation technique. During valuation, the
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Group adopts a valuation technique suitable for current situation, which is supported by sufficient available data and other information,
chooses the inputs consistent with the feature of assets or liabilities considered in the transaction thereof with market participants, and
uses related observable inputs in preference to the greatest extent. Unobservable inputs are used when it is unable to obtain or is
infeasible for related observable inputs.
10. Recognition standard impairment and receivables
(1) Bad debt provision on receivable accounts with major amount individually
Basis of recognition or standard amount of Receivables that are
The amount individually greater than 20 million.
individually significant
Receivables that are individually significant are subject to
separate impairment assessment. A provision for impairment
Basis of bad debt provision on receivable accounts with major
of the receivable is recognized if there is objective evidence
amount individually
that the Group will not be able to collect the full amounts
according to the original terms.
(2) Receivables that are provided for provision based on their credit risk characteristics
Name of the portfolio Basis of bad debt provision
Portfolio 1 according to percentage of balance method
Portfolio 2 according to percentage of balance method
Accounts on aging analysis basis in the portfolio:
□Applicable √Non-applicable
Accounts on percentage basis in the portfolio:
√Applicable □Non-applicable
Percentage of provision for Percentage of provision for other
Name of the portfolio
accounts receivable(%) receivables(%)
Portfolio 1 2% 2%
Portfolio 2 2% 2%
Accounts on other basis in the portfolio:
□Applicable √Non-applicable
(3) The method of provision for impairment of receivables that are individually significant
Reason for providing bad debt A provision for impairment of the receivable is recognized if there is objective evidence that
individually: the Group will not be able to collect the full amounts according to the original terms.
The provision for impairment of the receivable is established at the difference between the
Basis of bad debt provision:
carrying amount of the receivable and the present value of estimated future cash flows.
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11. Inventories
(a) Classification
Inventories refer to manufacturing sector, including raw materials, work in progress, finished goods and turnover materials, and are
measured at the lower of cost and net realisable value.
(b)Inventory costing method
Cost is determined using the weighted average method. The cost of finished goods and work in progress comprise raw materials,
direct labour and systematically allocated production overhead based on the normal production capacity.
(c)Amortisation methods of low value consumables and packaging materials
Turnover materials include low value consumables and packaging materials, which are expensed when issued.
(d)The determination of net realisable value and the method of provision for impairment of inventories
Provision for decline in the value of inventories is determined at the excess amount of the carrying amounts of the inventories over
their net realisable value. Net realisable value is determined based on the estimated selling price in the ordinary course of business,
less the estimated costs to completion and estimated costs necessary to make the sale and related taxes.
(e)The Group adopts the perpetual inventory system.
12. Assets classified as held for sale
A non-current asset or a disposal group is classified as held for sale when all of the following conditions are satisfied: (1) the non-current
asset or the disposal group is available for immediate sale in its present condition subject only to terms that are usual and customary for
sales of such non-current asset or disposal group; (2) the group has signed with other parties legally binding sale agreement and approval
has been obtained, is expected to the sale will be completed within one year.
Non-current assets (except for financial assets and deferred tax assets) that meet the recognition criteria for held for sale are recognised at
the amount equal to the lower of the fair value less costs to sell and the carrying amount. The difference between fair value less costs to
sell and the carrying amount should be presented as impairment loss.
Such non-current assets and assets included in disposal groups as classified as held for sale are accounted for as current assets; while
liabilities included in disposal groups classified as held for sale are accounted for as current liabilities, which are presented separately in
the balance sheet.
A discontinued operation is a component of the Group that either has been disposed of or is classified as held for sale, and is separately
identifiable operationally and for financial reporting purposes, and satisfies one of the following conditions: (1) represents a separate
major line of business or geographical area of operations; (2) is part of a single coordinated plan to dispose of a separate major line of
business or geographical area of operations; and (3) is a subsidiary acquired exclusively with a view to resale.
Earnings from discontinued operations stated in the income statement include operating profit and loss and disposal gains and losses.
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13. Long-term equity investments
Long-term equity investments comprise the Company’s long-term equity investments in its subsidiaries, and the Group’s long-term
equity investments in its associates.
Subsidiaries are the investees over which the Company is able to exercise control. Associates are the investees that the Group has
significant influence on their financial and operating policies.
Investments in subsidiaries are measured using the cost method in the Company’s financial statements, and adjusted by using the
equity method when preparing the consolidated financial statements. Investments in associates are accounted for using the equity
method.
(a) Initial recognition
For long-term equity investments formed in business combination: when obtained from business combinations involving entities
under common control, the long-term equity investment is stated at carrying amount of equity for the combined parties at the time
of merger; when the long-term equity investment obtained from business combinations involving entities not under common
control, the investment is measured at combination cost.
For long-term equity investments not formed in business combination: the one paid by cash is initially measured at actual purchase
price; the long-term investment obtained by issuing equity securities is stated at fair value of equity securities as initial investment
cost.
(b) Subsequent measurement and recognition method of profit or loss
Long-term equity investments accounted for using the cost method are measured at initial investment cost. Cash dividend or profit
distribution declared by the investees is recognised as investment income in profit or loss.
For long-term equity investments accounted for using the equity method, where the initial investment cost exceeds the Group’s
share of the fair value of the investee’s identifiable net assets at the time of acquisition, the investment is initially measured at cost.
Where the initial investment cost is less than the Group’s share of the fair value of the investee’s identifiable net assets at the time
of acquisition, the difference is included in profit or loss for the current period and the cost of the long-term equity investment is
adjusted upwards accordingly.
For long-term equity investments accounted for using the equity method, the Group recognises the investment income according to
its share of net profit or loss of the investee. The Group discontinues recognising its share of the net losses of an investee after the
carrying amounts of the long-term equity investment together with any long-term interests that in substance form part of the
investor’s net investment in the investee are reduced to zero. However, if the Group has obligations for additional losses and the
criteria with respect to recognition of provisions under the accounting standards on contingencies are satisfied, the Group continues
recognising the investment losses and the provisions. For changes in owners’ equity of the investee other than those arising from its
net profit or loss, its proportionate share is directly recorded into capital surplus, provided that the proportion of shareholding of the
Group in the investee remains unchanged. The carrying amount of the investment is reduced by the Group’s share of the profit
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distribution or cash dividends declared by an investee. The unrealised profits or losses arising from the transactions between the
Group and its investees are eliminated in proportion to the Group’s equity interest in the investees, based on which the investment
gain or losses are recognised. Any losses resulting from transactions between the Group and its investees attributable to asset
impairment losses are not eliminated.
(c) Definition of control, joint control and significant influence over the investees
The term "control" refers to the power in the investees, to obtain variable returns by participating in the related business activities
of the investees, and the ability to affect the returns by exercising its power over the investees.
The term "significant influence" refers to the power to participate in the formulation of financial and operating policies of an
enterprise, but not the power to control, or jointly control, the formulation of such policies with other parties.
(d) Impairment of long-term equity investments
The carrying amount of long-term equity investments in subsidiaries and associates is reduced to the recoverable amount when the
recoverable amount is less than the carrying amount.
14. Fixed assets
(1) Recognition and initial measurement
Fixed assets comprise buildings, machinery and equipment, motor vehicles and others.
Fixed assets are recognised when it is probable that the related economic benefits will flow to the Group and the costs can be reliably
measured. Fixed assets purchased or constructed by the Group are initially measured at cost at the time of acquisition.
Subsequent expenditures incurred for a fixed asset are included in the cost of the fixed asset when it is probable that the associated
economic benefits will flow to the Group and the related cost can be reliably measured. The carrying amount of the replaced part is
derecognised. All the other subsequent expenditures are recognised in profit or loss in the period in which they are incurred.
(2) Depreciation methods
Fixed assets are depreciated using the straight-line method to allocate the cost of the assets to their estimated residual values over
their estimated useful lives. For the fixed assets that have been provided for impairment loss, the related depreciation charge is
prospectively determined based upon the adjusted carrying amounts over their remaining useful lives.
The estimated useful lives, the estimated net residual values expressed as a percentage of cost and the annual depreciation rates of
fixed assets are as follows:
Estimated net residual
Categories Depreciation methods Period of depreciation Annual depreciation rate
value
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CSG Semi-annual Report 2018
Buildings straight-line method 20 to 35 years 5% 2.71% ~ 4.75%
Machinery and equipment straight-line method 8 to 20 years 5% 4.75%~11.88%
Motor vehicles and others straight-line method 5 to 8 years 0% 12.50%~20.00%
15. Construction in progress
Construction in progress is recorded at actual cost. Actual cost comprises construction cost, installation cost, borrowing costs eligible
for capitalised condition and necessary expenditures incurred for its intended use. Actual cost also includes net of trial production
cost and trial production income before construction in progress is put into production.
Construction in progress is transferred to fixed assets when the assets are ready for their intended use, and depreciation begins from
the following month.
Book value of construction in progress is reduced to the recoverable amount when the recoverable amount is below book
value。
16. Borrowing costs
The borrowing costs that are directly attributable to the acquisition and construction of an asset that needs a substantially long period
of time for its intended use commence to be capitalised and recorded as part of the cost of the asset when expenditures for the asset
and borrowing costs have been incurred, and the activities relating to the acquisition and construction that are necessary to prepare
the asset for its intended use have commenced. The capitalisation of borrowing costs ceases when the asset under acquisition or
construction becomes ready for its intended use and the borrowing costs incurred thereafter are recognised in profit or loss for the
current period. Capitalisation of borrowing costs is suspended during periods in which the acquisition or construction of a fixed asset
is interrupted abnormally and the interruption lasts for more than 3 months, until the acquisition or construction is resumed.
For the specific borrowings obtained for the acquisition or construction of an asset qualifying for capitalisation, the amount of
borrowing costs eligible for capitalisation is determined by deducting any interest income earned from depositing the unused specific
borrowings in the banks or any investment income arising on the temporary investment of those borrowings during the capitalisation
period.
For the general borrowings obtained for the acquisition or construction of an asset qualifying for capitalisation, the amount of
borrowing costs eligible for capitalisation is determined by applying the weighted average effective interest rate of general
borrowings, to the weighted average of the excess amount of cumulative expenditures on the asset over the amount of specific
borrowings. The effective interest rate is the rate at which the estimated future cash flows during the period of expected duration of
the borrowings or applicable shorter period are discounted to the initial amount of the borrowings.
17. Intangible assets
(1) Valuation method, service life and impairment test
Intangible assets, mainly including land use rights, patents and proprietary technologies, exploitation rights and others, are measured
at cost.
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(a) Land use rights
Land use rights are amortised on the straight-line basis over their approved use period of 30 to 70 years. If the acquisition costs of the
land use rights and the buildings located thereon cannot be reasonably allocated between the land use rights and the buildings, all of
the acquisition costs are recognised as fixed assets.
(b) Patents and proprietary technologies
Patents are amortised on a straight-line basis over the estimated use life.
(c) Exploitation rights
Exploitation rights are amortised on a straight-line basis over permitted exploitation periods on the exploitation certificate.
(d) Periodical review of useful life and amortisation method
For an intangible asset with a finite useful life, review of its useful life and amortisation method is performed at each year-end, with
adjustment made as appropriate.
(e) Impairment of intangible assets
Book value of intangible assets is reduced to the recoverable amount when the recoverable amount is below book value.
(2) Internal research and development expenditure accounting policy
The expenditure on an internal research and development project is classified into expenditure on the research phase and expenditure
on the development phase based on its nature and whether there is material uncertainty that the research and development activities
can form an intangible asset at end of the project.
Expenditure on the research phase related to planned survey, evaluation and selection for research on manufacturing technique is
recognised in profit or loss in the period in which it is incurred. Prior to mass production, expenditure on the development phase
related to the design and testing phase in regards to the final application of manufacturing technique is capitalised only if all of the
following conditions are satisfied:
the development of manufacturing technique has been fully demonstrated by technical team;
management has approved the budget for the development of manufacturing technique;
there are research and analysis of pre-market research explaining that products manufactured with such technique are capable
of marketing;
There is sufficient technical and capital to support the development of manufacturing technique and subsequent mass
production; and the expenditure on manufacturing technique development can be reliably gathered.
Other development expenditures that do not meet the conditions above are recognised in profit or loss in the period in which they are
incurred. Development costs previously recognised as expenses are not recognised as an asset in a subsequent period. Capitalised
expenditure on the development phase is presented as development costs in the balance sheet and transferred to intangible assets at
the date that the asset is ready for its intended use.
18. Impairment of long-term assets
Fixed assets, construction in progress, intangible assets with finite useful lives and long-term equity investments in joint ventures and
associates are tested for impairment if there is any indication that the assets may be impaired at the balance sheet date; intangible
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CSG Semi-annual Report 2018
assets not ready for their intended use are tested at least annually for impairment, irrespective of whether there is any indication that
they may be impaired. If the result of the impairment test indicates that the recoverable amount of an asset is less than its carrying
amount, a provision for impairment and an impairment loss are recognised for the amount by which the asset’s carrying amount
exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and the present value
of the future cash flows expected to be derived from the asset. Provision for asset impairment is determined and recognised on the
individual asset basis. If it is not possible to estimate the recoverable amount of an individual asset, the recoverable amount of a
group of assets to which the asset belongs is determined. A group of assets is the smallest group of assets that is able to generate
independent cash inflows.
Goodwill that is separately presented in the financial statements is tested at least annually for impairment, irrespective of whether
there is any indication that it may be impaired. In conducting the test, book value of goodwill is allocated to the related asset groups
or groups of asset groups which are expected to benefit from the synergies of the business combination. If the result of the test
indicates that the recoverable amount of an asset group or group of asset groups, including the allocated goodwill, is lower than its
carrying amount, the corresponding impairment loss is recognised. The impairment loss is first deducted from book value of goodwill
that is allocated to the asset group or group of asset groups, and then deducted from book values of other assets within the asset
groups or groups of asset groups in proportion to book values of assets other than goodwill.
Once the above asset impairment loss is recognised, it will not be reversed for the value recovered in the subsequent periods.
19. Long-term prepaid expenses
Long-term prepaid expenses include the expenditures that have been incurred but should be recognised as expenses over more than
one year in the current and subsequent periods. Long-term prepaid expenses are amortised on the straight-line basis over the expected
beneficial period and are presented at actual expenditure net of accumulated amortisation.
20. Employee benefits
(1) Short-term employee benefits accounting method
Short-term employee benefits include wages or salaries, bonuses, allowances and subsidies, staff welfare, medical care, work injury
insurance, maternity insurance, housing funds, labour union funds, employee education funds and paid short-term leave, etc. The
employee benefit liabilities are recognised in the accounting period in which the service is rendered by the employees, with a
corresponding charge to the profit or loss for the current period or the cost of relevant assets. Employee benefits which are
non-monetary benefits shall be measured at fair value.
(2) Post-employment benefits accounting method
The Group classifies post-employment benefit plans as either defined contribution plans or defined benefit plans. Defined
contribution plans are post-employment benefit plans under which the Group pays fixed contributions into a separate fund and will
have no obligation to pay further contributions; and defined benefit plans are post-employment benefit plans other than defined
contribution plans. During the reporting period, the Group's post-employment benefits mainly include basic pensions and
unemployment insurance, both of which belong to the defined contribution plans.
(3) Basic pensions
The Group’s employees participate in the basic pension plan set up and administered by local authorities of Ministry of Human
Resource and Social Security. Monthly payments of premiums on the basic pensions are calculated according to prescribed bases and
percentage by the relevant local authorities. When employees retire, local labour and social security institutions have a duty to pay
the basic pension insurance to them. The amounts based on the above calculations are recognised as liabilities in the accounting
period in which the service has been rendered by the employees, with a corresponding charge to the profit or loss for the current
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CSG Semi-annual Report 2018
period or the cost of relevant assets.
(4) Termination benefits accounting method
The Group provides compensation for terminating the employment relationship with employees before the end of the employment
contracts or as an offer to encourage employees to accept voluntary redundancy before the end of the employment contracts. The
Group recognises a liability arising from compensation for termination of the employment relationship with employees, with a
corresponding charge to profit or loss at the earlier of the following dates: 1) when the Group cannot unilaterally withdraw the offer
of termination benefits because of an employment termination plan or a curtailment proposal; 2) when the Group recognises costs or
expenses related to the restructuring that involves the payment of termination benefits.
The termination benefits expected to be paid within one year since the balance sheet date are classified as current liabilities.
21. Provisions
Business restructuring, provisions for product warranties, loss contracts etc. are recognised when the Group has a present obligation,
it is probable that an outflow of economic benefits will be required to settle the obligation, and the amount of the obligation can be
measured reliably.
A provision is initially measured at the best estimate of the expenditure required to settle the related present obligation. Factors
surrounding a contingency, such as the risks, uncertainties and the time value of money, are taken into account as a whole in reaching
the best estimate of a provision. Where the effect of the time value of money is material, the best estimate is determined by
discounting the related future cash outflows. The increase in the discounted amount of the provision arising from passage of time is
recognised as interest expense.
Book value of provision is reviewed at each balance sheet date and adjusted to reflect the current best estimate.
The provisions expected to be paid within one year since the balance sheet date are classified as current liabilities.
22. Share-based payments
Share-based payments are divided into equity-settled and cash-settled payments. The term "equity-settled share-based payment"
refers to a transaction in which an enterprise grants shares or other equity instruments as a consideration in return for services.
Equity-settled share-based payment The Group‘s stock optionstock option plan is the equity-settled share-based payment in exchange
of employees' services and is measured at the fair value of the equity instruments at grant date. The equity instruments are exercisable
after services in vesting period are completed or specified performance conditions are met. In the vesting period, the services
obtained in current period are included in relevant cost and expenses at the fair value of the equity instruments at grant date based on
the best estimate of the number of exercisable equity instruments, and capital surplus is increased accordingly. If the subsequent
information indicates the number of exercisable equity instruments differs from the previous estimate, an adjustment is made and, on
the exercise date, the estimate is revised to equal the number of actual vested equity instruments. The Group determines the fair value
of stock optionstock options using option pricing model, which is Black-Scholes option pricing model (B-S model).
In the period at which performance conditions and term of service are met, the relevant cost and expenses of equity-settled payment
should be recognized, and capital surplus is increased accordingly. Before the exercise date, the accruing amounts of equity-settled
payments on balance sheet date reflect the part of expired waiting period and optimal estimation for the number of the Company final
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CSG Semi-annual Report 2018
vested equity instruments.
If the non-market conditions and term of service are not met so that share-based payment fail to exercise, the costs and expenses on
this portion should not be recognized. If the share-based payment agreement sets out the market conditions and term of non-vesting,
as long as performance conditions and term of service are met, it is should be regard as exercisable right, no matter the market
conditions and non-vesting conditions are meet or not.
If the terms of equity-settled payment are modified, at least the service is confirmed in accordance with the unmodified terms. In
addition, the increase of the fair value of the authorized equity instruments, or the beneficial changes to the employees on the
modification date, the increase of service are confirmed.
If the equity-settled payment is cancelled, the cancellation date shall be deemed as an expedited exercise, and the unconfirmed
amount shall be confirmed immediately. If the employee or other party is able to choose to meet the non-vesting conditions but not
satisfied in the waiting period, equity-settled payment should be cancelled. But if a new equity instrument is granted, and the new
equity instrument is confirm to replace the old equity instrument which is canceled in the authorization date of the new equity
instrument, the new equity instrument should be disposed by using the same conditions and terms of the old equity instrument for
modifications.
23. Revenue
The amount of revenue is determined in accordance with the fair value of the consideration received or receivable for the sales of
goods and services in the ordinary course of the Group’s activities. Revenue is shown net of discounts, rebates and returns.
Revenue is recognised when the economic benefits associated with the transaction will probably flow to the Group, the related
revenue can be reliably measured, and the specific revenue recognition criteria have been met for each type of the Group’s activities
as described below:
(a) Sales of goods
The Group mainly sells flat and engineering glass, products related to solar energy, and electronic glass and displays. For domestic
sales, the Group delivers the products to a certain place specified in the contract. When the buyer takes over the goods, the Group
recognises revenue. For export sales, the Group recognises the revenue when it finished clearing goods for export and deliver the
goods on board the vessel, or when the goods are delivered to a certain place specified in the contract. For above sales, when the
buyer takes over the goods, the buyer has the right to sell the products, and should bear the risk of price fluctuation or goods damage.
(b) Rendering of services
Revenue is recognised for the rendering of service by the Group to external parties upon the completion of related service.
(c) Transfer of asset use rights
Interest income is recognised on a time-proportion basis using the effective interest method.
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CSG Semi-annual Report 2018
24. Government grants
(1)Judgment basis and accounting method of government grants related to an asset
The government grants related to assets refers to government grant obtained by enterprises and used for purchase and construction of
long-term assets or formation of long-term in other ways.
The government subsidies related to assets will be used to write off the book value of assets concerned, or be recognized as the
deferred gains and be booked into the gains and losses in a reasonable and systematic manner over the useful life of the assets
concerned.
(2) Judgment basis and accounting method of government grants related to income
The government grants related to income refer to grants other than those related to assets.
The income-related government subsidy which is used to compensate for costs or losses associated with the subsequent periods will
be recognized as deferred gains and is recorded as current gains or losses or offsets related costs during the period in which the
relevant cost costs or losses are recognized; The income-related government subsidy which is used to compensate for related costs or
losses incurred will be directly included in current profits or losses or related costs. The group adopts the same presentation method
for similar government grants.
(3) Judgment basis and accounting method of government grants related to ordinary activities.
The ordinary activitiy government grants should be counted into operating profits; the government grants which not belong ordinary
activities should be counted inton non-operationg income.
25. Deferred tax assets and deferred tax liabilities
Deferred tax assets and deferred tax liabilities are calculated and recognised based on the differences arising between the tax bases of
assets and liabilities and their carrying amounts (temporary differences). Deferred tax asset is recognised for the deductible losses
that can be carried forward to subsequent years for deduction of the taxable profit in accordance with the tax laws. No deferred tax
liability is recognised for a temporary difference arising from the initial recognition of goodwill. No deferred tax asset or deferred tax
liability is recognised for the temporary differences resulting from the initial recognition of assets or liabilities due to a transaction
other than a business combination, which affects neither accounting profit nor taxable profit (or deductible loss). At the balance sheet
date, deferred tax assets and deferred tax liabilities are measured at the tax rates that are expected to apply to the period when the
asset is realised or the liability is settled.
Deferred tax assets are only recognised for deductible temporary differences, deductible losses and tax credits to the extent that it is
probable that taxable profit will be available in the future against which the deductible temporary differences, deductible losses and
tax credits can be utilised.
Deferred tax liabilities are recognised for temporary differences arising from investments in subsidiaries and associates, except where
the Group is able to control the timing of reversal of the temporary difference, and it is probable that the temporary difference will
not reverse in the foreseeable future. When it is probable that the temporary differences arising from investments in subsidiaries and
associates will be reversed in the foreseeable future and that the taxable profit will be available in the future against which the
temporary differences can be utilised, the corresponding deferred tax assets are recognised.
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CSG Semi-annual Report 2018
Deferred tax assets and liabilities are offset when:
the deferred taxes are related to the same tax payer within the Group and the same taxation authority; and,
that tax payer within the Group has a legally enforceable right to offset current tax assets against current tax liabilities.
26. Leases
(1) Accounting method of operating lease
Lease payments under an operating lease are recognised on a straight-line basis over the period of the lease, and are either capitalised
as part of the cost of related assets, or charged as an expense for the current period.
Lease income under an operating lease is recognised as revenue on a straight-line basis over the period of the lease.
(2) Accounting method of financing lease
A lease that transfers substantially all the risks and rewards incidental to ownership of an asset is a finance lease. An operating lease
is a lease other than a finance lease.
27. Safety production costs
According to relevant regulations of the Ministry of Finance and National Administration of Work Safety, a subsidiary of the Group
which is engaged in producing and selling polysilicon appropriates safety production costs on following basis:
(a) 4% for revenue below RMB10 million (inclusive) of the year;
(b) 2% for the revenue between RMB10 million to RMB100 million (inclusive) of the year;
(c) 0.5% for the revenue between RMB100 million to RMB1 billion (inclusive) of the year;
(d) 0.2% for the revenue above RMB1 billion of the year.
The safety production costs is mainly used for the overhaul, renewal and maintenance of safety facilities. The safety production costs
are charged to costs of related products or profit or loss when appropriated, and safety production costs in equity account are credited
correspondingly. When using the special reserve, if the expenditures are expenses in nature, the expenses incurred are offset against
the special reserve directly when incurred. If the expenditures are capital expenditures, when projects are completed and transferred
to fixed assets, the special reserve should be offset against the cost of fixed assets, and a corresponding accumulated depreciation are
recognised. The fixed assets are no longer be depreciated in future.
28. Segment information
The Group identifies operating segments based on the internal organisation structure, management requirements and internal
reporting system, and discloses segment information of reportable segments which is determined on the basis of operating segments.
29. Significant changes in accounting policies
(1) Changes in significant accounting policies
□Applicable √Not applicable
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CSG Semi-annual Report 2018
(2)Changes in significant accounting estimates
□Applicable √ Not applicable
30. Critical accounting estimates and judgements
The Group continually Estimates the critical accounting estimates and key assumptions applied based on historical experience and
other factors, including expectations of future events that are believed to be reasonable.
The critical accounting estimates and key assumptions that have a significant risk of possibly causing a material adjustment to book
values of assets and liabilities within the next accounting year are outlined below:
(a) Income tax
The Group is subject to Income tax in numerous jurisdictions. There are some transactions and events for which the ultimate tax
determination is uncertain during the ordinary course of business. Significant judgement is required from the Group in determining
the provision for Income tax in each of these jurisdictions. Where the final identified outcome of these tax matters is different from
the initially-recorded amount, such difference will impact the income tax expenses and deferred income tax in the period in which
such determination is finally made.
(b) Deferred income tax
Estimates on deferred tax assets are based on estimates on amount of taxable income and applicable tax rate for every year.
Realisation of deferred income tax are subject to sufficient taxable income that are possible to be obtained by the Group in the future.
Change of the future tax rate as well as the reversed time of temporary difference might have effects on tax expense (income) and the
balance of deferred tax assets or liabilities. Those estimates may also cause significant adjustment on deferred tax.
(c) Impairment of long-term assets (excluding goodwill)
Long-term assets at the balance sheet date should be subject to impairment testing if there are any indications of impairment.
Management determines whether the long-term assets impaired or not by evaluating and analysing following aspects: (1) whether the
event affecting assets impairment occurs; (2) whether the expected obtainable present value of future cash flows is lower than the
asset’s carrying amount by continually using the assets or disposal; and (3) whether the assumptions used in expected obtainable
present value of future cash flows are appropriate.
Various assumptions, including the discount rate and growth rate applied in the method of present value of future cash flow, are
required in evaluating the recoverable amount of assets. If these assumptions cannot be conformed, the recoverable amount should be
modified, and the long-term assets may be impaired accordingly.
(d) The useful life of fixed assets
Management estimates the useful life of fixed assets, based on historical experiences on using fixed assets that have similar
properties and functions. When there are differences between actually useful life and previously estimation, management will adjust
estimation to useful life of fixed assets. The fixed assets would be written off or written down when fixed assets been disposed or
became redundant. Thus, the estimated result based on existing experience may be different from the actual result of the next
accounting period, which may cause major adjustment to book value of fixed assets on balance sheet.
(e) Goodwill impairment
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CSG Semi-annual Report 2018
Goodwill impairment reviews are undertaken annually or more frequently if events or changes in circumstances indicate a potential
impairment. For the purpose of impairment testing, goodwill acquired in a business combination is allocated to each of the
cash-generating units (“CGUs”), or groups of CGUs, and future cash flow from each CGU or CGUs is forcasted and discounted with
appropriate discount rate.
VI. Taxation
1. The main categories and rates of taxes applicable to the Group are set out below:
Tax item Tax basis Tax rate
Taxable value-added amount (Tax payable is calculated
Value-added tax (“VAT”) using the taxable sales amount multiplied by the applicable 6%-17%
tax rate less deductible VAT input of the current period)
City maintenance and construction tax VAT paid 1%-7%
Enterprise income tax Taxable income 0%-25%
Educational surcharge VAT paid 3%-5%
Resource tax Sales volume of silica 6.5%
2. Tax incentives
The main tax incentives the Group is entitled to are as follows:
Tianjin Energy Conservation Glass Co., Ltd. (“Tianjin Energy Conservation”) passed review on a high and new tech enterprise in 2015
and obtained the Certificate of High and New Tech Enterprise, the period of validity is three years. It applies to 15% tax rate for three
years since 2015. Currently in the review of high and new tech enterprise, this report period temporary by 15% income tax rate.
Dongguan CSG Architectural Glass Co., Ltd. (“Dongguan CSG”) passed review on a high and new tech enterprise in 2016 and
obtained the Certificate of High and New Tech Enterprise, the period of validity is three years. It applies to 15% tax rate for three years
since 2016.
Wujiang CSG North-east Architectural Glass Co., Ltd. (“Wujiang CSG”) passed review on a high and new tech enterprise in 2017
and obtained the Certificate of High and New Tech Enterprise, the period of validity is three years. It applies to 15% tax rate for three
years since 2017.
Dongguan CSG Solar Glass Co., Ltd. (“Dongguan CSG Solar”) passed review on a high and new tech enterprise in 2017 and
obtained the Certificate of High and New Tech Enterprise, the period of validity is three years. It applies to 15% tax rate for three
years since 2017.
Yichang CSG Silicon Co., Ltd. (“Yichang CSG Silicon”) passed review on a high and new tech enterprise in 2017 and obtained the
Certificate of High and New Tech Enterprise, the period of validity is three years. It applies to 15% tax rate for three years since
2017.
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CSG Semi-annual Report 2018
Dongguan CSG PV-tech Co., Ltd. (“Dongguan CSG PV-tech”) passed review on a high and new tech enterprise in 2016 and obtained
the Certificate of High and New Tech Enterprise, the period of validity is three years. It applies to 15% tax rate for three years since
2016.
Hebei Panel Glass Co., Ltd. (“Hebei Panel”) passed review on a high and new tech enterprise in 2016 and obtained the Certificate of
High and New Tech Enterprise, the period of validity is three years. It applies to 15% tax rate for three years since 2016.
Wujiang CSG Glass Co., Ltd. (“Wujiang CSG”) was recognised as a high and new tech enterprise in 2017, and obtained the
Certificate of High and New Tech Enterprise, and the period of validity was three years. It applies to 15% tax rate for three years
since 2017.
Xianning CSG Glass Co Ltd. (“Xianning CSG”) was recognised as a high and new tech enterprise in 2017, and obtained the
Certificate of High and New Tech Enterprise, and the period of validity was three years. It applies to 15% tax rate for three years
since 2017.
Xianning CSG Energy-Saving Glass Co., Ltd. (“Xianning CSG Energy-Saving”) was recognised as a high and new tech enterprise in
2015, and obtained the Certificate of High and New Tech Enterprise, and the period of validity was three years. It applies to 15% tax
rate for three years since 2015. Currently in the review of high and new tech enterprise, this report period temporary by 15% income
tax rate.
Yichang CSG Photoelectric Glass Co., Ltd. (“Yichang CSG Photoelectric”) was recognised as a high and new tech enterprise in 2015,
and obtained the Certificate of High and New Tech Enterprise, and the period of validity was three years. It applies to 15% tax rate
for three years since 2015. Currently in the review of high and new tech enterprise, this report period temporary by 15% income tax
rate.
Yichang CSG Display Co., Ltd (“Yichang CSG Display”) was recognised as a high and new tech enterprise in 2016, and obtained the
Certificate of High and New Tech Enterprise, and the period of validity was three years. It applies to 15% tax rate for three years
since 2016.
Qingyuan CSG New Energy-Saving Materials Co., Ltd. (“Qingyuan CSG Energy-Saving”) was recognised as a high and new tech
enterprise in 2016, and obtained the Certificate of High and New Tech Enterprise, and the period of validity was three years. It
applies to 15% tax rate for three years since 2016.
Sichuan CSG Energy Conservation Glass Co., Ltd. (“Sichuan CSG Energy Conservation”) obtains enterprise income tax preferential
treatment for Western Development, and temporarily calculates enterprise income tax at a tax rate of 15% for current year.
Chengdu CSG Glass Co., Ltd. (“Chengdu CSG”) obtains enterprise income tax preferential treatment for Western Development, and
temporarily calculates enterprise income tax at a tax rate of 15% for current year.
Qingyuan CSG New Energy Co., Ltd. (“Qingyuan CSG New Energy”), Suzhou CSG PV Energy Co., Ltd. (“Suzhou CSG PV
Energy”), Jiangsu Wujiang CSG New Energy Co., Ltd. (“Wujiang CSG New Energy”), and Yichang CSG New Energy Co., Ltd.
(“Yichang CSG New Energy”), Zhangzhou CSG Kibing PV Energy Co., Ltd. (“Zhangzhou CSG”), Heyuan CSG Kibing PV Energy
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CSG Semi-annual Report 2018
Co., Ltd. (“Heyuan CSG”), Shaoxing CSG Kibing PV Energy Co., Ltd. (“Shaoxing CSG”) are public infrastructure project specially
supported by the state in accordance with the Article 87 in Implementing Regulations of the Law of the People's Republic of China on
Enterprise Income Tax, and can enjoy the tax preferential policy of “three-year exemptions and three-year halves”, that is, starting
from the tax year when the first revenue from production and operation occurs, the enterprise income tax is exempted from the first
to the third year, while half of the enterprise income tax is collected for the following three years. Qingyuan CSG New Energy,
Suzhou CSG PV Energy and Wujiang CSG New Energy started to carry out operations in 2015, while Yichang CSG New Energy
started operation in 2016, Zhangzhou CSG, Heyuan CSG and Shaoxing CSG started operation in 2017.
In addition, pursuant to the document Fogang Guo Shui Shui Tong [2015] No. 2489, the VAT for photovoltaic power generation of
Qingyuan CSG New Energy is subject to the refund upon collection policy.
3. Others
Some subsidiaries of the Group have used the “exempt, credit, refund” method on goods exported and the refund rate is 5%-17%.
VII. Notes to the consolidated financial statements
1. Cash at bank and on hand
Unit: RMB
Item Balance at the end of the period Balance at the beginning of the period
Cash on hand 14,984 36,182
Cash at bank 3,358,238,362 2,409,716,983
Other cash balances 13,791,823 52,852,599
Total 3,372,045,169 2,462,605,764
Other cash balances include margin deposits for the application of opening letter of credit and loan from the bank, amounting to RMB
13,791,823 (Dec. 31,2017: RMB 2,852,599), which is restricted cash.
2. Notes receivable
(1) Notes receivable listed by classification
Unit: RMB
Item Balance at the end of the period Balance at the beginning of the period
Bank acceptance notes 443,248,211 222,826,841
Trade acceptance notes 345,830,165 329,405,579
Total 789,078,376 552,232,420
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CSG Semi-annual Report 2018
(2) Notes receivable which have been endorsed or discounted at the end of the term by the Group but are
not yet due are as follows:
Unit: RMB
Amount of recognition termination Amount of not terminated recognition at the
Item
at the period-end period-end
Bank acceptance notes 2,358,041,319
Trade acceptance notes 150,400,507
Total 2,358,041,319 150,400,507
3. Accounts receivable
(1) Accounts receivable disclosed by category
Unit: RMB
End of term Beginning of term
Carrying amount Provision for bad debts Carrying amount Provision for bad debts
Category
Proporti Propor Book value Propor Propor Book value
Amount Amount Amount Amount
on tion tion tion
With amounts
that are
individually
significant but
that the related
provision for
bad debts is
provided on the
individual basis
Accounts
receivable
withdrawn bad
debt provision 710,368,384 97% 14,207,893 2% 696,160,491 636,614,136 96% 12,233,039 2% 624,381,097
according to
credit risks
characteristics
With amounts
that are not
individually
19,750,276 3% 8,535,399 43% 11,214,877 23,536,221 4% 9,679,028 41% 13,857,193
significant but
that the related
provision for
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CSG Semi-annual Report 2018
bad debts is
provided on the
individual basis
Total 730,118,660 100% 22,743,292 3% 707,375,368 660,150,357 100% 21,912,067 3% 638,238,290
Accounts receivable with large amount individually and bad debt provisions were provided
□ Applicable √ Non-applicable
Accounts receivable on which bad debt provisions are provided on age analyze basis in the portfolio
□ Applicable √ Non-applicable
Accounts receivable on which bad debt provisions are provided on percentage analyze basis in a portfolio
√Applicable □ Non-applicable
Unit: RMB
Closing balalnce
Name of portfolio
Accounts receivable Bad debt provision Proportion %
Portfolio 1 710,368,384 14,207,893 2%
Total 710,368,384 14,207,893 2%
(2) Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debt provision during the report period was of RMB 7,311,182. The amount of the reversed or
collected part during the report period was of RMB 3,725,813.
(3) The actual write-off accounts receivable
Unit: RMB
Item Write-off amount
Accounts receivable 2,754,144
The receivables actually written off during the year amounted to RMB 2,754,144, which was due to small receivables and non-related
transactions. The reasons for write-off include business disputes or failure to contact the debtor and result in uncollectible payments.
(4) Top 5 of the closing balance of the accounts receivable colleted according to the arrears party
As at June 30, 2018, the top 5 of the closing balance of the accounts receivable colleted according to the arrears party were collected
and analyzed as follows:
Balance Provision for bad debts Percentage in total accounts receivable balance
Total balances for the five largest 100,227,996 2,004,560 14%
accounts receivable
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CSG Semi-annual Report 2018
4. Advances to suppliers
(1) Listed by aging analysis
Unit: RMB
Closing balance Opening balance
Age
Amount Proportion Amount Proportion
within 1 year 109,057,887 89% 130,813,397 91%
1 to 2 years 102,035 264,952
2 to 3 years 72,952 12,769,674 9%
over 3 years 12,769,674 11%
Total 122,002,548 -- 143,848,023 --
As at June 30, 2018, advances to suppliers ageing over one-year amount to RMB 12,944,661 (December 31 2017: RMB 13,034,626).
They were mainly mainly for prepaid gas and material purchases, and the payment had not been selected because the materials had not
been received.
(2) Top 5 of the closing balance of the advances to suppliers colleted according to the target
As at June 30, 2018, the top five largest advances to supplies are set out as below:
Balance Percentage in total advances balance
Total advances for the five largest advances 56,202,340 46%
5. Other account receivable
(1) Other accounts receivable disclosed by category:
Unit: RMB
End of term Beginning of term
Provision for bad Provision for bad
Carrying amount Carrying amount
Category debts debts
Book value Book value
Propor Propor Propor Propor
Amount Amount Amount Amount
tion tion tion tion
With amounts that
are individually
significant but that
the related provision
for bad debts is
provided on the
individual basis
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CSG Semi-annual Report 2018
Accounts receivable
withdrawn bad debt
provision according 213,536,126 100% 4,265,739 2% 209,270,387 210,136,518 100% 4,197,499 2% 205,939,019
to credit risks
characteristics
With amounts that
are not individually
significant but that
the related provision 322,905 322,905 100% 322,905 322,905 100%
for bad debts is
provided on the
individual basis
Total 213,859,031 100% 4,588,644 2% 209,270,387 210,459,423 100% 4,520,404 2% 205,939,019
Other accounts receivable with large amount and were provided bad debt provisions individually at end of period.
□ Applicable √ Non-applicable
Other accounts receivable in the portfolio on which bad debt provisions were provided on age analyze basis
□ Applicable √ Non-applicable
Other accounts receivable in the portfolio on which bad debt provisions were provided on percentage basis
√ Applicable □ Non-applicable
Unit: RMB
Closing balance
Name of portfolio
Other receivable accounts Provision for bad debts proportion
Portfolio 1 42,536,126 845,739 2%
Portfolio 2 171,000,000 3,420,000 2%
Total 213,536,126 4,265,739 2%
Other accounts receivable in the portfolio on which bad debt provisions were provided on other basis
□ Applicable √ Non-applicable
(2) Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debt provision during the report period was of RMB150,117. The amount of the reversed or
collected part during the report period was of RMB 81,877.
(3) Other accounts receivable classified by the nature of accounts
Unit: RMB
Nature Closing balance Opening balance
Receivables from related parties 171,000,000 171,000,000
Refundable deposits 20,162,058 16,957,562
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CSG Semi-annual Report 2018
Payments made on behalf of other parties 13,889,009 19,306,658
Petty cash 1,519,176 875,714
Others 7,288,788 2,319,489
Total 213,859,031 210,459,423
(4) Top 5 of the closing balance of the other accounts receivable collated according to the arrears party
Unit: RMB
Proportion of the
Name of the
total year end Closing balance of
companies Nature of business Closing balance Ages
balance of the bad debt provision
Industrial
accounts receivable
Company A Related parties 171,000,000 4 to 5 years 80% 3,420,000
Governmental Independent third party 3 to 4 years
11,067,754 5% 221,355
department B
Company C Independent third party 5,000,000 1 to 2 years 2% 100,000
Company D Independent third party 3,350,000 Within 1 year 2% 67,000
Governmental Independent third party Within 1 year
2,728,214 1% 54,564
department E
Total -- 193,145,968 -- 90% 3,862,919
6. Inventories
(1) Categories of inventory
Unit: RMB
Closing balance Opening balance
Item Provision for Provision for decline
Carrying amount Book value Carrying amount Book value
decline in the value in the value
Raw materials 209,815,202 1,444,252 208,370,950 213,348,012 1,447,590 211,900,422
Products in process 20,713,776 20,713,776 45,614,905 45,614,905
Products in stock 443,933,341 68,974 443,864,367 387,489,714 68,974 387,420,740
Material in
40,673,556 40,673,556 40,959,250 40,959,250
circulation
Total 715,135,875 1,513,226 713,622,649 687,411,881 1,516,564 685,895,317
(2) Provision for decline in the value of inventories
Unit: RMB
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CSG Semi-annual Report 2018
Increased in this term Decreased in this term
Category Opening balance Closing balance
Withdrawal Other Reverse or write-off Other
Raw materials 1,447,590 3,338 1,444,252
Products in stock 68,974 68,974
Total 1,516,564 3,338 1,513,226
Provision for decline in the value of inventories is as follows:
Basis for provision for decline in the value of inventories Reasons of reversal of the decline in
the value of inventories
Products in stock The amount of carrying amount less than that of net realisable value
due to decline in price of products Sold
Raw materials The amount of book value more that of net realisable value due to
sluggish or damaged raw materials Used
7. Assets classified as held for sale
Unit: RMB
carrying amounts Estimated
Item Fair value Estimated disposal costs
at the end of period disposal time
Intangible assets 15,048,314 18,390,394
Construction in progress 30,935,206 37,805,606
Total 45,983,520 56,196,000 --
The subsidiary of the Group, Dongguan CSG PV-tech signed a grant contract of land use right with third party Dongguan Chaoying
Textile Co., LTD. (Dongguan Chaoying Company) on 17 June 2016. Dongguan CSG PV-tech sells its land use right along with the
buildings on the land to Dongguan Chaoying Company. Therefore, the construction-in-progress and intangible assets of Dongguan
CSG PV-tech were transferred to assets held for sale. By the end of this reporting period, the above transfer procedures have not been
completed.
8. Other current assets
Item Closing balance Opening balance
VAT to be offset 154,548,103 181,667,326
Enterprise income tax prepaid 2,198,301 1,132,508
VAT input to be recognised 22,057,351 18,048,155
Total: 178,803,755 200,847,989
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CSG Semi-annual Report 2018
9. Fixed assets
(1) Particulars of fixed assets
Unit: RMB
Machinery and
Item Buildings Motor vehicles Total
equipment
I. Original book value:
1. Opening balance 3,999,368,700 12,462,823,260 208,292,757 16,670,484,717
2. Increased amount of the period
(1) Acquisition 71,132 7,573,067 3,439,675 11,083,874
(2) Transfers from construction in progress 10,251,332 430,457,709 2,839,472 443,548,513
(3) Others 6,596,592 18,819,685 2,274,639 27,690,916
3. Decreased amount of the period
(1) Disposal or retirement 19,245,299 2,743,499 21,988,798
(2) Transfer to construction in progress 145,340,491 145,340,491
4. Closing balance 4,016,287,756 12,755,087,931 214,103,044 16,985,478,731
II. Accumulative depreciation
1. Opening balance 751,518,811 3,908,894,072 188,549,283 4,848,962,166
2. Increased amount of the period
(1) Provision 63,278,467 422,717,038 11,716,224 497,711,729
3. Decreased amount of the period
(1) Disposal or retirement 4,968,193 2,715,456 7,683,649
(2) Transferred to construction in progress 117,366,019 117,366,019
4. Closing balance 814,797,278 4,209,276,898 197,550,051 5,221,624,227
III. Depreciation reserves
1. Opening balance 10,580,861 270,171,993 280,752,854
2. Increased amount of the period
(1) Provision
3. Decreased amount of the period
(1) Disposal or retirement 11,196,033 11,196,033
4. Closing balance 10,580,861 258,975,960 269,556,821
IV. Book value
1. Closing book value 3,190,909,617 8,286,835,073 16,552,993 11,494,297,683
2. Opening book value 3,237,269,028 8,283,757,195 19,743,474 11,540,769,697
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CSG Semi-annual Report 2018
(2) Fixed assets with pending certificates of ownership
Unit: RMB
Items Book value Reason for not yet obtaining certificates of title
Have submitted the required documents and are in the process of
Buildings 825,479,080
application, or the related land use right certificate pending
10. Construction in process
(1)Particulars of construction in process
Unit: RMB
Closing balance Opening balance
Item Provision for Provision for
Carrying amount Carrying amount Carrying amount Carrying amount
impairment loss impairment loss
Xianning CSG Photoelectric Glass
460,524,423 460,524,423 400,665,493 400,665,493
project
Yichang display device company flat
321,772,258 14,160,474 307,611,784 298,794,622 14,160,474 284,634,148
panel display project
Yichang Optoelectronic Technology
1,117,944 1,117,944 242,055,237 242,055,237
Reform Project
Hebei float 600T tech-innovation
116,421,995 116,421,995 113,762,853 113,762,853
project
Zhanjiang Photovoltaic 20MV
Step-by-step Photovoltaic Power Plant 4,239,529 4,239,529 100,570,104 100,570,104
Project
Dongguan Solar Glass Phase I and II
78,970,995 40,248,018 38,722,977 78,970,995 40,248,018 38,722,977
improvement project
Wujiang energy glass expansion
70,936,821 19,876,460 51,060,361 72,600,518 19,876,460 52,724,058
project
Yichang 1GW silicon slice project 48,653,281 48,653,281 43,617,802 43,617,802
LED Sapphire Substrate Project 31,762,102 19,303,853 12,458,249 30,886,629 19,303,853 11,582,776
Wujiang Photovoltaic Packaging
4,805,466 4,805,466 7,414,854 7,414,854
Materials Project
Dongguan PV Tech 200MW PV-tech
1,541,388 1,541,388 1,179,935 1,179,935
Battery Expansion project
Dongguan Solar Glass new
32,491,564 32,491,564 1,888,363 1,888,363
photovoltaic glass project
others 111,616,450 405,983 111,210,467 119,212,001 405,983 118,806,018
91
CSG Semi-annual Report 2018
Total 1,284,854,216 93,994,788 1,190,859,428 1,511,619,406 93,994,788 1,417,624,618
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CSG Semi-annual Report 2018
(2) Movement of significant project
Unit: RMB
Proportion
Accumulate Including: Capitalizin
Transfer to fixed Other between
Opening Increased Closing of interest g rate of
Projects Budget assets in this decreases in engineering Progress Fund recourse
balance this term balance interest capitalized this interest
term this term input and
capitalized term this term
budget
Xianning CSG
Photoelectric Glass 510,000,000 400,665,493 59,858,930 460,524,423 91% 100% 14,047,509 6,276,896 4.75% Internal fund and
project bank loan
Yichang display
Internal fund and
device company flat 1,970,000,000 298,794,622 23,438,436 460,800 321,772,258 82% 85% 6,607,890 2,463,731 4.47%
bank loan
panel display project
Yichang
Optoelectronic
258,296,536 242,055,237 9,970,569 250,054,605 853,257 1,117,944 100% 100%
Technology Reform
Project Internal fund
Hebei float 600T
tech-innovation 145,750,000 113,762,853 2,659,142 116,421,995 14% 15% 163,839 163,839 4.94% Internal fund and
project bank loan
Zhanjiang
Photovoltaic 20MV
Step-by-step 133,000,000 100,570,104 92,218,630 4,111,945 4,239,529 100% 100% 2,280,097
Photovoltaic Power Internal fund and
Plant Project bank loan
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CSG Semi-annual Report 2018
Dongguan Solar
Glass Phase I and II 396,410,000 78,970,995 78,970,995 80% 81%
improvement project Internal fund
Wujiang energy glass Internal fund and
845,630,000 72,600,518 1,396,512 2,899,013 161,196 70,936,821 100% 100% 20,120,444
expansion project bank loan
Yichang 1GW silicon Internal fund and
1,073,209,600 43,617,802 5,081,198 45,719 48,653,281 39% 60% 10,105,307 1,475,314 5.15%
slice project bank loan
LED Sapphire Internal fund and
35,000,000 30,886,629 875,473 31,762,102 88% 88% 4,650,543
Substrate Project bank loan
Wujiang Photovoltaic
Internal fund and
Packaging Materials 520,100,000 7,414,854 22,910,266 24,771,759 747,895 4,805,466 95% 100%
bank loan
Project
Dongguan PV Tech
200MW PV-tech Internal fund and
697,000,000 1,179,935 1,094,726 733,273 1,541,388 100% 100% 32,417,335
Battery Expansion bank loan
project
Dongguan Solar
Glass new
60,000,000 1,888,363 30,603,201 32,491,564 57% 80% Internal fund
photovoltaic glass
project
Internal fund and
others 1,283,748,333 119,212,001 64,904,542 72,364,714 135,379 111,616,450 8,789,090 9,388
bank loan
Total 7,928,144,469 1,511,619,406 222,792,995 443,548,513 6,009,672 1,284,854,216 -- -- 99,182,054 10,389,168 --
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CSG Semi-annual Report 2018
11. Intangible assets
(1) Particulars of intangible assets
Unit: RMB
Exploitation
Item Land use rights Patents Others Total
rights
I. Original book value:
1. Opening balance 1,026,603,700 246,011,919 4,456,536 36,106,710 1,313,178,865
2. Increased amount of this period
(1) Acquisition 25,361 278,387 303,748
(2) Internal R&D 9,191,305 9,191,305
3. Decreased amount of the period
(1)Disposal
4. Closing balance 1,026,603,700 255,228,585 4,456,536 36,385,097 1,322,673,918
II. Accumulated amortisation
1. Opening balance 149,057,265 74,985,236 3,706,724 24,996,753 252,745,978
2. Increased amount of this period
(1) Provision 10,193,270 9,333,131 200,321 3,427,051 23,153,773
3. Decreased amount of the period
(1) Disposal
4. Closing balance 159,250,535 84,318,367 3,907,045 28,423,804 275,899,751
III. Impairment provision
1. Opening balance 13,201,347 9,133 13,210,480
2. Increased amount of this period
(1) Provision
3. Decreased amount of this period
(1) Disposal
4. Closing balance 13,201,347 9,133 13,210,480
IV. Book value
1. Closing book value 867,353,165 157,708,871 549,491 7,952,160 1,033,563,687
2. Opening book value 877,546,435 157,825,336 749,812 11,100,824 1,047,222,407
At the end of the period, the intangible assets arising from internal research and development accounted for 12.98% of total of
intangible assets.
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CSG Semi-annual Report 2018
(2) Land use rights not licensed yet
Unit: RMB
Item Book value Reason for not yet obtaining certificates of title
Land 5,351,068 in the process
As at June 30, 2018, ownership certificates of land use right (“Land ownership Certificates”) for certain land use rights of the Group
with carrying amounts of approximately RMB 5,351,068 (cost: RMB 6,586,712) had not yet been obtained by the Group (as at
December 31, 2017, carrying amount: RMB 5,473,442, cost: RMB 6,586,712). The Company’s management is of the view that there
is no legal restriction for the Group to apply for and obtain the Land Ownership Certificates and has no adverse effect on the Group’s
business operation.
12. Development expenditure
Unit: RMB
The increased amount in the period The decrease amount in the period
Item Opening balance Closing balance
Internal development expenditure Recognised as intangible assets
Development
61,365,537 19,803,682 9,191,305 71,977,914
expenditure
Total 61,365,537 19,803,682 9,191,305 71,977,914
During Jan.-Jun. 2018, the total amount of research and development expenditures of the Group was RMB 185,844,867 (Jan.-Jun.
2017: RMB 166,809,377), including RMB 166,041,185 (Jan.-Jun. 2017: RMB 151,590,181) recorded in income statement for
current period and the research and development expenditure with the amount of RMB 9,191,305 recognised as intangible assets for
the current period (Jan.-Jun. 2017: 6,097,439). As at June 30, 2018, the intangible assets arising from internal research and
development accounted for 12.98 % of total of intangible assets (31 December 2017: 12.37 %).
13. Goodwill
(1) Book value of goodwill
Unit: RMB
Name of the companies or goodwill item Opening balance Increased this term Decreased this term Closing balance
Tianjin CSG Architectural Glass Co., Ltd. 3,039,946 3,039,946
Xianning CSG Photoelectric 4,857,406 4,857,406
Shenzhen CSG Display 389,494,804 389,494,804
Total 397,392,156 397,392,156
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CSG Semi-annual Report 2018
14. Long-term prepaid expenses
Unit: RMB
Item Opening balance Increased this term Amortized this term Closing balance
Expenses to be amortized 2,223,397 10,823,584 794,984 12,251,997
Total 2,223,397 10,823,584 794,984 12,251,997
15. Deferred income tax asset/deferred income tax liabilities
(1) Deferred income tax assets had not been off-set
Unit: RMB
Closing balance Opening balance
Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference assets difference assets
Provision for asset
358,728,456 53,970,832 361,149,562 55,552,592
impairments
Deductible loss 186,903,882 33,564,573 133,658,792 24,457,319
Government grants 174,742,139 27,365,959 128,189,967 20,424,022
Accrued expenses 49,145,573 7,371,836 50,193,405 7,529,011
Depreciation of fixed assets 20,764,321 4,607,204 33,762,174 8,000,331
Share payment 62,178,136 10,200,424 5,196,945 867,677
Total 852,462,507 137,080,828 712,150,845 116,830,952
(2) Deferred tax liabilities before offsetting
Unit: RMB
Closing balance Opening balance
Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference liabilities difference liabilities
Depreciation of fixed assets 399,860,322 61,379,387 371,115,284 56,874,044
Total 399,860,322 61,379,387 371,115,284 56,874,044
(3) The net balances of deferred tax assets or liabilities
Unit: RMB
Off-set amount of Closing balance of Off-set amount of Opening balance of
Item
deferred income tax deferred income tax deferred income tax deferred income tax
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CSG Semi-annual Report 2018
assets and liabilities at assetsor liabilities after assets and liabilities at assetsor liabilities after
the period-end off-set the period-beginning off-set
Deferred tax assets 36,960,329 100,120,499 35,958,090 80,872,862
Deferred tax liabilities 36,960,329 24,419,058 35,958,090 20,915,954
(4) Details of unrecognised deferred income tax assets
Unit: RMB
Item Closing balance Opening balance
Deductible losses 521,381,041 425,759,321
Total 521,381,041 425,759,321
(5) Deductible losses of unrecognized deferred income tax assets will due the following years
Unit: RMB
Year Closing balance Opening balance Note
2018 年 54,100,000 54,100,000
2019 年 82,300,000 82,300,000
2020 年 94,430,197 94,430,197
2021 年 111,625,585 111,625,585
2022 年 83,303,539 83,303,539
2023 年 95,621,720
Total 521,381,041 425,759,321 --
16. Other non-current assets
Unit: RMB
Item Closing balance Opening balance
Prepayment of engineering equipment 79,656,620 45,431,352
Prepayment for lease of land use rights 6,510,000 6,510,000
Total 86,166,620 51,941,352
17. Short-term loans
(1) Categories of short-term loans
Unit: RMB
Item Closing balance Opening balance
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CSG Semi-annual Report 2018
Guaranteed loan 1,099,419,972 1,012,898,300
Unsecured loan 2,850,000,000 2,691,732,609
Total 3,949,419,972 3,704,630,909
As at June 30, 2018, the interest of short-term borrowings varied from 2.95% to 6.18% (31 December 2017: 2.70% to 5.66%).
18. Notes payable
Unit: RMB
Category Closing balance Opening balance
Bank acceptance notes 208,201,622 213,401,622
Total 208,201,622 213,401,622
19. Accounts payable
(1) Particulars of accounts payable
Unit: RMB
Item Closing balance Opening balance
Materials payable 786,952,582 798,178,206
Equipment payable 293,681,363 329,926,045
Construction expenses payable 134,857,144 167,394,038
Freight payable 71,579,206 61,671,023
Utilities payable 31,002,278 35,973,405
Others 13,056,369 7,023,325
Total 1,331,128,942 1,400,166,042
(2) Significant accounts payable due for over one year
Unit: RMB
Item Closing balance Unpaid reason
Account payable for construction and As the construction work had not passed the final
148,507,365
equipments. acceptance test yet, the balance was not yet settled.
Total 148,507,365 --
20. Advances from customers
(1) List of advance from customers
Unit: RMB
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CSG Semi-annual Report 2018
Item Closing balance Opening balance
Advances from customers 183,976,533 195,563,465
Total 183,976,533 195,563,465
21. Employee benefits payable
(1) List of Employee benefits payable
Unit: RMB
Item Opening balance Increased this term Decreased this term Closing balance
I. Short-term employee
272,144,440 736,129,597 825,838,639 182,435,398
benefits payable
II. Welfare after
departure- defined 26,220 55,521,053 55,369,081 178,192
contribution plans
Total 272,170,660 791,650,650 881,207,720 182,613,590
(2) List of short-term employee benefits
Unit: RMB
Item Opening balance Increased this term Decreased this term Closing balance
1. Wages and salaries, bonuses,
175,485,615 557,542,383 607,426,805 125,601,193
allowances and subsidies
2. Social security contributions 13,752 22,071,046 21,990,590 94,208
Including: Medical insurance 12,358 18,579,525 18,510,496 81,387
Work injury insurance 984 2,270,598 2,261,771 9,811
Maternity insurance 410 1,220,923 1,218,323 3,010
3. Housing funds 2,758,371 23,814,977 24,343,892 2,229,456
4.Labour union funds and
15,280,702 8,234,381 6,081,286 17,433,797
employee education funds
5.Management bonus (i) 78,606,000 28,831,310 70,360,566 37,076,744
6. Share payment (ii) 95,635,500 95,635,500
Total 272,144,440 736,129,597 825,838,639 182,435,398
(3) List of defined contribution plans
Unit: RMB
Item Opening balance Increased this term Decreased this term Closing balance
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CSG Semi-annual Report 2018
1. Basic pensions 25,388 53,602,090 53,455,510 171,968
2. Unemployment insurance 832 1,918,963 1,913,571 6,224
Total 26,220 55,521,053 55,369,081 178,192
Pursuant to the resolution at the 7th session in the 5th meeting of the board of directors of the Company on 31 March 2015, the board
of directors adopted a management bonus scheme which was based on the quarterly return on net assets and the net profit for the
quarter. During the first half of 2018, management bonuses amounting to RMB 31,000,000 (Jan.-Jun. 2017: RMB 35,700,000) were
accrued and charged to profit or loss.
Pursuant to the resolution at the 7th session in the temporary conference of the board of directors of the Company on 11 December
2017, to implemented equity incentive plans of restricted stock for the Company directors and senior management, core management
team, backbones of technology and busines. The company first awarded 97,511,654 restricted shares to 454 incentive objects for the
first time at RMB 4.28 per share. The total fair value of the equity instruments granted to the incentive object by the company for the
first time is RMB 289,519,900. The total value of such fair value as the total cost of the company's equity incentive plan will be
confirmed in stages according to the ratio of unlocking/exercising in the implementation of the equity incentive plan, and it is
included in the cost in the term of "management fees" and "capital reserves - other capital reserves".
In the first half of 2018, and the cost associated with equity incentive plan is confirmed at RMB 95,635,500 in this phase.
22. Tax payable
Unit: RMB
Item Closing balance Opening balance
Value-added-tax payable 37,724,917 48,496,225
Corporate income tax payable 41,970,446 35,100,800
Individual income tax payable 5,768,179 5,177,080
City maintenance and construction tax 2,888,985 4,261,902
Property tax payable 8,058,999 8,617,044
Education surcharge payable 2,430,091 3,348,566
environmental protection tax 2,926,779
Others 5,844,303 6,995,147
Total 107,612,699 111,996,764
23. Interest payable
Unit: RMB
Item Closing balance Opening balance
Interest of long-term borrowings with periodic payments of
976,143 938,950
interest and return of principal at maturity
Interest payable for short-term borrowings 6,110,565 5,471,325
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CSG Semi-annual Report 2018
Interest payable for medium term notes 66,284,488 27,622,465
Total 73,371,196 34,032,740
24. Dividends payable
Unit: RMB
Item Closing balance Opening balance
Restricted shares dividend 4,875,583
Total 4,875,583
25. Other account payable
(1) List of other account payable by nature
Unit: RMB
Item Closing balance Opening balance
Guarantee deposits received from construction
60,768,771 49,624,256
contractors
Accrued cost of sales (i) 25,927,613 58,584,562
Temporary collection of payment for land
55,496,000 56,196,000
transfer
Payable for contracted labour costs 17,614,260 17,568,695
Temporary receipts 15,621,231 7,964,070
Deposit for disabled 5,280,590 5,230,110
Restricted share repurchases obligation (ii) 412,474,296 417,349,879
Industrial production scheduling funds 15,000,000
Others 12,357,872 6,806,782
Total 620,540,633 619,324,354
(i) It represented the payment made to external third parties arising from undertaking the rights of debtor and creditor, comprising
water and electricity, professional service fee and travelling expenses etc.
(ii) In this item, the repurchase obligation of restricted shares is recognized by the company as liabilities and meanwhile the
treasury stock will be recognized in terms of corresponding amount.
26. Current portion of non-current liabilities
Unit: RMB
Item Closing balance Opening balance
Current portion of long-term borrowings 234,000,000 194,880,000
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CSG Semi-annual Report 2018
Current portion of finance lease 707,647,396 709,381,397
Total 941,647,396 904,261,397
27. Other current liabilities
Unit: RMB
Item Closing balance Opening balance
Others 300,000 300,000
Total 300,000 300,000
28. Long-term borrowings
(1) Categories of long-term loans
Unit: RMB
Item Closing balance Opening balance
Guaranteed 364,000,000 354,120,000
Medium term notes 2,000,000,000 1,200,000,000
Total 2,364,000,000 1,554,120,000
Approved by file No. [2015] MTN225 of Inter-bank Market Trading Association, the Company is entitled to issue medium term
notes with the limit of RMB 1,200,000,000, which expires on 28 May 2017.
On 14 July 2015, the Company issued the Phase I medium term notes of RMB 1,200,000,000 for 2015, with the maturity data of 14
July 2020 and annual rate of 4.94%.
Approved by file No. [2018] MTN157 of Inter-bank Market Trading Association, the Company is entitled to issue medium term
notes with the limit of RMB 800,000,000, which expires on 20 March 2020.
On 4 May 2018, the Company issued the Phase I medium term notes of RMB 800,000,000 for 2018, with the maturity data of 4 May
2021 and annual rate of 7%.
As at 30 June 2018, the interest of long-term borrowings varied from 4.75%-7% (31 December 2017: 4.75%-5.94%).
29. Long-term account payable
(1) List of Long-term account payable by nature
Unit: RMB
Item Closing balance Opening balance
Finacial lease 866,214,017 1,161,794,247
103
CSG Semi-annual Report 2018
The sale and leaseback lease of the group in this phase is a mortgage loan with a lease term of 36 months. On June 30, 2018, the real
interest rate of financing lease loans is 4.49%-7.8%.
30. Deferred income
Unit: RMB
Increase in current decrease in current
Item Opening balance Closing balance Reason
period period
Government grants 562,701,103 2,680,000 15,354,638 550,026,465
Total 562,701,103 2,680,000 15,354,638 550,026,465 --
Government grants are analysed below:
Unit: RMB
Amount of
cost and
Increase in Included in expense
Opening Other Closing Related to assets
Item in debt current non-busines Account to written
balance changes balance or income
period s income other inco down in
me in this current
period period
Tianjin CSG Golden
53,717,119 1,687,446 52,029,673
Sun Project (i) Assets related
Dongguan CSG
Golden Sun 43,328,250 1,375,500 41,952,750
Project (ii) Assets related
Hebei CSG Golden
44,000,000 1,375,000 42,625,000
Sun Project (iii) Assets related
Xianning CSG
Golden Sun 47,982,917 1,515,250 46,467,667
Project (iv) Assets related
Infrastructure
compensation for
39,628,898 2,020,769 37,608,129
Wujiang CSG
Glass Co., Ltd (v) Assets related
Qingyuan
Energy-saving project 20,789,167 1,235,000 19,554,167
(vi) Assets related
Yichang Silicon
products project 21,796,875 1,406,250 20,390,625
(vii) Assets related
Yichang CSG silicon 12,662,876 613,867 12,049,009 Assets related
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CSG Semi-annual Report 2018
slice auxiliary
project (viii)
Sichuan
energy-saving 10,475,460 827,010 9,648,450
glass project (ix) Assets related
Group coating film
experimental 7,526,280 941,880 6,584,400
project (x) Assets related
Yichang expert
3,599,883 153,331 3,446,552
silicon project (xi) Assets related
Yichang
semiconductor 3,400,000 133,333 3,266,667
silicon project (xii) Assets related
Yichang CSG Display
50,836,604 1,267,239 49,569,365
project (xiii) Assets related
Xianning
Photoelectric 7,800,000 7,800,000
project (xiv) Assets related
Group talent fund
171,000,000 171,000,000
project (xv) Income related
Assets related/Income
24,156,774 2,680,000 716,775 85,988 26,034,011
Others related
Total 562,701,103 2,680,000 15,268,650 85,988 550,026,465 ——
(i)The allowance was granted by Tianjin Municipal Government. The allowance was used for establishing PV power station by
Tianjin CSG Architectural Glass Co., Ltd. The facilities belonged to Tianjin CSG upon completion. The allowance will be credited to
income statement in 20 years, the useful life of the PV power station.
(ii)The allowance was granted by Dongguan Municipal Government. The allowance was used for establishing PV power station by
Dongguan CSG Architectural Glass Co., Ltd. The facilities belonged to Dongguan CSG upon completion. The allowance will be
credited to income statement in 20 years, the useful life of the PV power station.
(iii)The allowance was granted by Langfang Municipal Government. The allowance was used for establishing PV power station by
Hebei CSG Glass Co., Ltd. ("Hebei CSG"). When the facilities were set up, they belonged to Hebei CSG. The allowance will be
credited to income statement in 20 years, the useful life of the PV power station.
(iv)The allowance was granted by Xianning Municipal Government. The allowance was used for establishing PV power station by
Xianning CSG Glass Co Ltd. The facilities belonged to Xianning CSG upon completion. The allowance will be credited to income
statement in 20 years, the useful life of the PV power station.
(v)The allowance was infrastructure compensation granted by Wujiang municipal government, and will be credited to income
statement in 15 years, the shortest operating period as committed by the Group.
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CSG Semi-annual Report 2018
(vi)The allowance was a pilot project for strategic emerging industry clusters development, which was used to establish high
performance ultra-thin electronic glass production lines by Qingyuan CSG. The allowance will be credited to income statement in 10
years, the useful life of the production line.
(vii)The balance represented amounts granted to Yi Chang CSG Silicon Materials Co., Ltd. by Yichang City Dongshan Development
Corporation under the provisions of the investment contract signed between the Group and the Municipal Government of Yi Chang.
The proceeds were designed for the construction of electricity transformer and the pipelines. Yichang Silicon is entitled to the
ownership of the facilities, which will be amortised by 16 years according to the useful life of the converting station.
(viii)It represented the government supporting fund obtained by Yichang Silicon from the acquiring of the assets and liabilities of
Crucible project of Yichang Hejing Photoelectric Ceramic Co., Ltd. The proceeds would be amortised and credited to income
statement by 16 years after related assets were put into use.
(ix)It represented the funds granted by Chengdu local government for energy glass project. It will be amortised and credited to
income statement in 15 years, in accordance with the minimum operating period committed by the Group.
(x)The allowance was granted by Shenzhen City Development and Reform Commission for the development of Group Coating Film
experimental project. The grant will be amortised and credited to income statement by 20 years in the estimated useful life of the
relevant fixed assets.
(xi) It represented the funds granted by Hubei local government for inport discount complement and international corporation special
subsidy. The grant will be amortised and credited to income statement by 12 and 15 years
(xii) It represented the funds granted by Yichang Municipal Government for Yichang CSG Display Company's flat project
construction support funds and construction of coil coating three-line project. The grant will be amortised and credited to income
statement by 15 years
(xiii) It represented the funds granted by Yichang Municipal Government for Yichang CSG Display Company's flat project
construction support funds and construction of coil coating three-line project. The grant will be amortised and credited to income
statement by 15 years.
(xiv) It represented the funds granted by Xianning Government of the Project supporting fund for photoconductive glass of light
guide plate production line, which is used to pay for Xianning CSG Glass Co. Ltd. constructing the project of photoelectric optical
glass of light guide plate production line. After the completion of the production line, the ownership belongs to Xianning
photoelectric. The allowance will be credited to income statement in 8 years, the useful life of the production line.
(xv)The allowance was granted by Administrative Commission of Yichang High-tech Industrial Development Zone. For senior
management personnel, engineering technical personnel and senior professional technical team which is working at Yichang or plane
to introduction, RMB171 million fund was set up, as a special fund for talent introduction and housing resettlement.
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CSG Semi-annual Report 2018
31. Share Capital
Unit: RMB
Changed in the report period (+,-)
Opening Closing
Transferred
balance New issues Bonus issue Others Sub-total balance
from reserves
Total of capital
2,484,147,547 372,622,131 372,622,131 2,856,769,678
shares
32. Capital surplus
Unit: RMB
Item Opening balance Increased this term Decreased this term Closing balance
Capital premium (Share premium) 1,353,802,562 372,622,131 981,180,431
Other capital surplus -47,420,797 95,635,500 48,214,703
Total 1,306,381,765 95,635,500 372,622,131 1,029,395,134
(i)The Company passed the 2017 annual general meeting of shareholders held on May 14, 2018 and transferred 1.5 shares to every
10 shares for all shareholders. The total share capital before the distribution was 2,484,147,547 shares, and the total share capital
after the dividend was increased to 2,856,769,678 shares. Capital reserve decreased by RMB 372,622,131;
(ii) This year, due to the equity incentive plan, the share payment fee of RMB 95,635,500 was confirmed.
33. Treasury shares
Unit: RMB
Item Opening balance Increased this term Decreased this term Closing balance
Obligations of restricted share buybacks 417,349,879 4,709,630 412,640,249
Total 417,349,879 4,709,630 412,640,249
The Company calculated the amount determined based on the number of restricted stocks issued and the corresponding repurchase
price, and confirmed the liabilities and treasury stocks. The decrease in treasury stocks was mainly due to the transfer of the restricted
stock stocks during the report period.
34. Other comprehensive income
Unit: RMB
Occuring in current period
Opening Closing
Item Amount Less: Amount Less: After-tax After-tax
balance balance
incurred transferred into income attribute to attribute to
before profit and loss in the tax the parent minority
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CSG Semi-annual Report 2018
income current period that expense company shareholder
tax recognized into
other
comprehensive
income in prior
period
I. Other comprehensive income not
reclassified into profit and loss in
futur
II. Other comprehensive income
reclassified into profit and loss in 1,948,943 692,018 692,018 2,640,961
future
Differences on translation of foreign
-601,057 692,018 692,018 90,961
currency financial statements
Finance incentives for energy and
2,550,000 2,550,000
technical transformation
Total of other comprehensive income 1,948,943 692,018 692,018 2,640,961
35. Special reserves
Unit: RMB
Item Opening balance Increased this term Decreased this term Closing balance
Safety production cost 3,224,938 4,150,167 3,387,069 3,988,036
Total 3,224,938 4,150,167 3,387,069 3,988,036
36. Surplus reserves
Unit: RMB
Item Beginning of term Increased this term Decreased this term End of term
Statutory surplus reserve 792,739,764 792,739,764
Discretionary surplus reserve 127,852,568 127,852,568
Total 920,592,332 920,592,332
37. Undistributed profits
Unit: RMB
Items The current period The same period of last year
Retained earnings at the end of the previous term
4,159,642,227 3,576,949,573
before adjustment
Retained earnings at the beginning of this term 4,159,642,227 3,573,871,573
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CSG Semi-annual Report 2018
after adjustment
Add: net profits belonging to equity holders of the
352,837,153 392,992,163
Company
Less: Appropriations to statutory surplus reserve
common stock dividends payable 124,041,424 207,533,556
Retained earnings in the end 4,388,437,956 3,759,330,180
38. Revenue and cost of sales
Unit: RMB
Occurred in current term Occurred in previous term
Item
Revenue Cost Revenue Cost
Revenue from main operations 5,427,330,622 4,086,213,828 4,914,535,874 3,730,914,851
Revenue from other operations 43,838,976 13,282,926 29,801,987 6,599,611
Total 5,471,169,598 4,099,496,754 4,944,337,861 3,737,514,462
39. Tax and surcharge
Unit: RMB
Item Occurred in current term Occurred in previous term
City maintenance and construction tax 20,205,850 15,364,494
Educational surcharge 16,053,678 11,927,211
Housing property tax 15,231,539 14,797,102
Land use rights 10,028,066 11,043,223
Business tax 2,733,716 2,411,686
Environmental protection tax 5,879,730
Others 1,797,967 6,202,059
Total 71,930,546 61,745,775
40. Selling Expenses
Unit: RMB
Item Occurred in current term Occurred in previous term
Freight expenses 83,319,840 76,391,481
Employee benefits 56,534,666 49,496,703
Entertainment expenses 6,061,293 5,674,868
Business travle expenses 4,909,377 5,113,500
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CSG Semi-annual Report 2018
Vehicle use fee 3,839,779 3,531,901
Rental expenses 3,085,489 3,029,551
Compensation 765,215 532,240
General office expenses 1,492,596 1,536,282
Depreciation expenses 494,202 482,108
Others 11,714,797 10,556,097
Total 172,217,254 156,344,731
41. Administrative Expenses
Unit: RMB
Item Occurred in current term Occurred in previous term
Research and development expenses 166,041,185 151,590,181
Employee benefits 237,887,025 135,166,127
Depreciation expenses 31,624,004 31,885,617
Amortisation of intangible assets 23,153,773 19,756,528
General office expenses 10,595,047 12,640,569
Labour union funds 7,756,982 7,083,212
Entertainment fees 7,056,600 4,800,751
Business travel expenses 5,348,267 4,486,643
Utility fees 4,734,267 4,529,626
Canteen costs 4,046,654 4,404,253
Vehicle use fee 3,268,588 2,966,987
Rental expenses 2,273,435 2,457,132
Consulting advisers 14,334,351 6,015,614
Others 22,433,824 14,771,100
Total 540,554,002 402,554,340
42. Finance Expenses
Unit: RMB
Item Occurred in current term Occurred in previous term
Interest expenses 203,531,507 143,194,586
Less: Interest income 23,033,418 4,186,712
Exchange losses -1,568,225 2,109,890
Others 6,947,562 2,256,263
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CSG Semi-annual Report 2018
Total 185,877,426 143,374,027
43. Asset impairment losses
Unit: RMB
Item Occurred in current term Occurred in previous term
Bad debt loss 3,653,609 1,108,695
Total 3,653,609 1,108,695
44. Asset disposal income
Unit: RMB
Source of income from assets disposal Occurred in current term Occurred in previous term
Gains on disposal of non-current assets -567,830 -71,756
45. Other income
Unit: RMB
Source of other gains Occurred in current term Occurred in previous term
Government subsidy amortization 15,268,650
Industry support funds 236,000 12,600,000
Research grants 1,423,460 6,479,492
Energy conservation and utilization
7,000 128,116
support funds
Government incentive funds 4,239,400 4,323,546
Others 689,290 143,080
Total 21,863,800 23,674,234
46. Non-operating income
Unit: RMB
Occurred in current Occurred in previous Amount of non-recurring gain and loss
Item
term term included in the report period
Government grants 150,000 14,826,965 150,000
Default income 75,000 75,000
Compensation income 837,396 146,436 837,396
Amounts unable to pay 282,061 520 282,061
Others 1,251,338 997,941 1,251,338
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CSG Semi-annual Report 2018
Total 2,595,795 15,971,862 2,595,795
Government subsidy included in current profit and loss
Unit: RMB
Item Occurred in current term Occurred in previous term Related to assets or income
Government grants amortisation 14,826,965 Assets related/Income related
Government awards fund 150,000 Income related
Total 150,000 14,826,965 --
47. Non-operating expenses
Unit: RMB
Occurred in current Occurred in previous Amount of non-recurring
Item
term term gain and loss included in the report period
Donation 199,999
Others 878,551 403,103 878,551
Total 878,551 603,102 878,551
48. Income tax expenses
(1) List of income tax expenses
Unit: RMB
Item Occurred in current term Occurred in previous term
Current income tax 77,115,637 74,283,293
Deferred income tax -15,744,533 6,169,728
Total 61,371,104 80,453,021
(2) Adjustment process of accounting profit and income tax expense
Unit: RMB
Item Occurred in current term
Total profit 420,453,221
Current income tax expense accounted by tax and relevant regulations 58,805,863
Costs, expenses and losses not deductible for tax purposes 493,030
The impact of the application of the deductible losses of of the deferred
-2,047,668
income tax not recognized in the previous periods
Influence of deductible temporary difference or deductible losses of 23,905,430
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CSG Semi-annual Report 2018
unrecognized deferred income tax assets
Balance the previous year income tax adjustment -14,815,121
Impact of tax incentives -4,036,456
Non-taxable income -933,974
Income tax expenses 61,371,104
49. Other comprehensive income
The details can be found in notes to the financial statements.
50. Items of the cash flow statement
(1) Cash generated by other operating activities
Unit: RMB
Item Occurred in current term Occurred in previous term
Government grant 6,745,150 23,674,234
Interest income 23,033,418 4,186,712
Others 34,088,357 40,349,756
Total 63,866,925 68,210,702
(2) Cash paid relating to other operating activities
Unit: RMB
Item Occurred in current term Occurred in previous term
Freight expenses 88,366,623 68,348,981
Canteen costs 18,797,322 21,140,169
General office expenses 15,300,093 16,993,639
Research and development expenses 32,721,683 26,795,302
Business travel expenses 12,947,259 12,971,903
Entertainment fees 13,644,421 11,650,156
Vehicle use fee 7,827,828 7,589,416
Maintenance fee 15,974,559 9,445,635
Rental expenses 5,358,924 4,103,767
Insurance 9,642,870 6,679,946
Bank fees 6,947,562 2,256,263
Consulting fees 8,397,822 6,015,614
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CSG Semi-annual Report 2018
Others 74,446,270 57,271,418
Total 310,373,236 251,262,209
(3) Cash generated by other investing activities
Unit: RMB
Item Occurred in current term Occurred in previous term
Government grants related to assets received 2,680,000 12,800,000
Collection trusted 11,239,200
Income from trial production of construction in progress 1,045,277
Total 3,725,277 24,039,200
(4) Cash paid relating to other investing activities
Unit: RMB
Item Occurred in current term Occurred in previous term
Payment for deposit and margin 4,673,145 31,475,182
Trial production expenditure in construction 54,018,834
Total 58,691,979 31,475,182
(5) Cash generated by other financing activities
Unit: RMB
Item Occurred in current term Occurred in previous term
Received interest free loan 1,381,000,000
Received mortgage loan 278,400,000
Collection of income tax of dividends of
1,276,534
A-share & B-share
Collection 2,490,239
Collect industrial production scheduling
15,000,000 4,701,291
fund
Total 16,276,534 1,666,591,530
(6) Cash paid relating to other financing activities
Unit: RMB
Item Occurred in current term Occurred in previous term
Payment of income tax of dividends of 1,701,507
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CSG Semi-annual Report 2018
A-share & B-share
Cash paid for Commission fee 1,920,000 1,750,000
Repay financing leases 347,964,797
Payment for deposit and margin 12,116,876
Total 362,001,673 3,451,507
51. Supplement information to the cash flow statement
(1) Supplement information to the cash flow statement
Unit: RMB
Supplementary Info. Amount of this term Amount of last term
1. Reconciliation from net profit to cash flows from operating
-- --
activities
Net profit 359,082,117 400,214,048
Add: Provisions for assets impairment 3,653,609 1,108,695
Depreciation of fixed assets, gas and petrol depreciation,
497,530,356 480,563,388
production goods depreciation
Amortisation of intangible assets 23,153,773 19,756,528
Amortisation of long-term prepaid expenses
Losses on disposal of fixed assets intangible assets and
567,830 71,756
other long-term assets (“- “for gains)
Losses on scrapping of fixed assets (“- “for gains)
Loss from changes in fair value (“- “for gains)
Finance expenses (“- “for gains) 203,531,507 143,194,586
Investment loss (“- “for gains)
Decrease in deferred tax assets (“- “for increase) -19,247,637 11,754,644
Increase of deferred income tax liability (“- “for decrease) 3,503,104 -5,584,916
Decrease of inventory (“- “for increase) -27,723,994 -152,812,851
Decrease of operational receivable items (“- “for increase) -288,368,392 -132,167,898
Increase of operational payable items (“- “for decrease) -86,753,685 253,791,474
Others 95,635,500
Net cash flow generated by business operation 764,564,088 1,019,889,454
2. Net change of cash and cash equivalents -- --
Balance of cash at period end 3,358,253,346 932,050,522
Less: Initial balance of cash 2,459,753,165 584,566,990
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CSG Semi-annual Report 2018
Net increasing of cash and cash equivalents 898,500,181 347,483,532
(2) Formation of cash and cash equivalents
Unit: RMB
Item Closing balance Opening balance
I. Cash 3,358,253,346 2,459,753,165
Incl: Cash on hand 14,984 36,182
Bank deposits that can be readily drawn on demand 3,358,238,362 2,409,716,983
Other cash balances that can be readily drawn on demand 50,000,000
II. Cash equivalents
III. Balance of cash and cash equivalents at th end of the period 3,358,253,346 2,459,753,165
52. Assets with restricted ownership or use rights
Unit: RMB
Item Ending book value Reason for restriction
Monetary assets 13,791,823 Restricted deposit flow
Fixed assets 2,369,789,041 Limited finance lease
Total 2,383,580,864 --
53. Foreign currency monetary items
(1) Foreign currency monetary items
Unit: RMB
Closing balance of foreign Closing
Item Exchange rate
currency balance convert to RMB
Cash at bank and on hand -- -- 52,567,315
Incl: USD 7,509,132 6.6166 49,684,923
EUR 676 7.6515 5,172
HKD 3,309,892 0.8431 2,790,570
AUD 17,443 4.8633 84,831
JPY 30,367 0.0599 1,819
Accounts receivable -- -- 159,975,673
Incl: USD 22,876,273 6.6166 151,363,148
EUR 989,154 7.6515 7,568,512
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CSG Semi-annual Report 2018
HKD 1,238,303 0.8431 1,044,013
Short-term borrowings 63,232,500
Incl: HKD 75,000,000 0.8431 63,232,500
Accounts payable 59,173,980
Incl: HKD 307 0.8431 259
USD 6,386,858 6.6166 42,259,285
EUR 1,964,778 7.6515 15,033,499
JPY 31,401,285 0.0599 1,880,937
VIII. The changes of consolidation scope
1. Other
On March 9, 2017, The Group established a subsidiary company, Chengdu CSG PV Energy Co., Ltd. As of June 30, 2018, the Group
has not invested yet. The Company holds 100% of its shares.
On March 2, 2017, The Group established a subsidiary company, Xianning CSG PV Energy Co., Ltd. As of June 30, 2018, the Group
has not invested yet. The Company holds 100% of its shares.
On February 22, 2017, The Group established a subsidiary company, Yichang CSG PV Energy Co., Ltd. As of June 30, 2018, the
Group has not invested yet. The Company holds 100% of its shares.
IX. Interest in other entities
1. Interest in subsidiary
(1) Composition of the Group
Major business Place of Shareholding (%)
Name of subsidiary Scope of business Way of acquicition
location registration Direct Indirect
Chengdu, Development, production and sales of special
Establishment
Chengdu CSG Chengdu, PRC PRC glass 75% 25%
Chengdu, Development, production and sales of special
Split-off
Sichuan CSG Energy Conservation Chengdu, PRC PRC glass and processing of glass 75% 25%
Development, production and sales of special
Establishment
Tianjin Energy Conservation Tianjin, PRC Tianjin, PRC glass 75% 25%
Dongguan,
Establishment
Dongguan CSG Dongguan, PRC PRC Intensive processing of glass 75% 25%
Dongguan CSG Solar Dongguan, PRC Dongguan, Production and sales of solar glass 75% 25% Establishment
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CSG Semi-annual Report 2018
PRC
Dongguan, Production and sales of hi-tech green battery
Establishment
Dongguan CSG PV-tech Dongguan, PRC PRC and components 100%
Yichang, Production and sales of high-purity silicon
Establishment
Yichang CSG Silicon Yichang, PRC PRC materials 75% 25%
Wujiang,
Establishment
Wujiang CSG Wujiang, PRC PRC Intensive processing of glass 75% 25%
Yongqing,
Establishment
Hebei CSG Yongqing, PRC PRC Production and sales of special glass 75% 25%
Wujiang,
Establishment
Wujiang CSG Wujiang, PRC PRC Production and sales of special glass 100%
China Southern Glass (Hong Kong) Hong Kong,
Establishment
Limited Hong Kong, PRC PRC Investment holding 100%
Yongqing, Production and sales of ultra-thin electronic
Establishment
Hebei Shichuang Yongqing, PRC PRC glass 100%
Xianning,
Establishment
Xianning CSG Xianning, PRC PRC Production and sales of special glass 75% 25%
Xianning,
Split-off
Xianning CSG Energy-Saving Xianning, PRC PRC Intensive processing of glass 75% 25%
Qingyuan, Production and sales of ultra-thin electronic
Establishment
Qingyuan CSG Energy-Saving Qingyuan, PRC PRC glass 100%
Shenzhen CSG Financial Leasing Co., Shenzhen,
Establishment
Ltd. Shenzhen, PRC PRC Finance leasing, etc. 75% 25%
Jiangyou CSG Mining Development Co. Jiangyou, Production and sales of silica and its
Establishment
Ltd. Jiangyou, PRC PRC by-products 100%
Shenzhen,
Establishment
Shenzhen CSG PV Energy Co., Ltd. Shenzhen, PRC PRC Investment management of photovoltaic plant 100%
Shenzhen, Production and sales of display component
Acquisition
Shenzhen Nanbo Display Shenzhen, PRC PRC products 60.80%
Xianning,
Acquisition
Xianning CSG Photoelectric Xianning, PRC PRC Photoelectric glass and high aluminium glass 37.50% 62.50%
(2)The significant non-fully-owned subsidiaries of the Group
Unit: RMB
Total profit or loss Dividends distributed
Shareholding Minority interest
attributable to minority to minority interests
Subsidiaries of minority as at 30 June
shareholders for the year for the year ended 30
shareholders 2018
ended 30 June 2018 June 2018
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CSG Semi-annual Report 2018
Shenzhen Nanbo Display Technology Co.,
39.20% 4,388,860 307,291,224
Ltd.
(3) The major financial information of the significant non-fully-owned subsidiaries of the Group
Unit: RMB
Closing balance
Name of
Current Non-current
Subsidiary Total assets Current liabilities Non-current liabilities Total liabilities
assets assets
Shenzhen 260,907,161 1,405,303,159 1,666,210,320 621,330,169 238,708,875 860,039,044
Nanbo
Opening balance
Display
Technology Current Non-current
Total assets Current liabilities Non-current liabilities Total liabilities
Co., Ltd. assets assets
230,735,047 1,384,202,485 1,614,937,532 588,962,555 237,351,982 826,314,537
Unit: RMB
Occurred in current term Occurred in previous term
Name of Total Cash flows from Total Cash flows
Subsidiary Revenue Net profit comprehensi operating Revenue Net profit comprehensiv from operating
ve income activities e income activities
Shenzhen
Nanbo
Display 240,861,525 11,154,553 11,154,553 30,440,528 228,993,498 14,924,574 14,924,574 27,884,582
Technology
Co., Ltd.
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CSG Semi-annual Report 2018
X. Risk related to financial instrument
The Group's activities expose it to a variety of financial risks: market risk (primarily currency risk and interest rate risk), credit risk and
liquidity risk. The Group's overall risk management programme focuses on the unpredictability of financial markets and seeks to
minimise potential adverse effects on the Group's financial performance.
(1) Market risk
(a) Foreign exchange risk
The Group’s major operational activities are carried out in Mainland China and a majority of the transactions are denominated in
RMB. However, some of the export business is settled in foreign currency. Besides, the Group is exposed to foreign exchange risk
arising from the recognised assets and liabilities, and future transactions denominated in foreign currencies, primarily with respect to
US dollars and HKD. The Group monitors the scale of foreign currency transactions, foreign currency assets and liabilities, and
adjust settlement currency of export business, to furthest reduce the currency risk.
As at 30 June 2018 the carrying amounts in RMB equivalent of the Group’s assets and liabilities denominated in foreign currencies
are summarized below:
30 June 2018
USD HKD Others Total
Financial assets denominated in foreign currency-
Cash at bank and on hand 49,684,923 2,790,570 91,822 52,567,315
Receivables 151,363,148 1,044,013 7,568,512 159,975,673
Total 201,048,071 3,834,583 7,660,334 212,542,988
Financial liabilities denominated in foreign
currency
Short-term borrowings 63,232,500 63,232,500
Payables 42,259,285 259 16,914,436 59,173,980
Total 42,259,285 63,232,759 16,914,436 122,406,480
31 December 2017
USD HKD Others Total
Financial assets denominated in foreign currency-
Cash at bank and on hand 74,120,750 6,114,383 112,007 80,347,140
Receivables 127,354,518 9,654,366 7,387,101 144,395,985
Total 201,475,268 15,768,749 7,499,108 224,743,125
Financial liabilities denominated in foreign
currency
Short-term borrowings 62,692,500 62,692,500
Payables 104,040,185 257 36,939,407 140,979,849
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CSG Semi-annual Report 2018
Total 104,040,185 62,692,757 36,939,407 203,672,349
As at 30 June 2018, if the currency had strengthened/weakened by 10% against the USD while all other variables had been held
constant, the Group’s net profit for the year would have been approximately RMB13,497,047 lower/higher (31 December 2017:
approximately RMB8,281,982 lower/higher) for various financial assets and liabilities denominated in USD.
As at 30 June 2018, if the currency had strengthened/weakened by 10% against the HKD while all other variables had been held
constant, the Group’s net profit for the year would have been approximately RMB5,048,845 higher/lower (31 December 2017:
approximately RMB3,988,541higher/lower ) for various financial assets and liabilities denominated in HKD.
Other changes in exchange rate had no significant influence on the Group's operating activities.
(b) Interest rate risk
The Group's interest rate risk arises from long-term interest bearing borrowings including long-term borrowings and bonds payable.
Financial liabilities issued at floating rates expose the Group to cash flow interest rate risk. Financial liabilities issued at fixed rates
expose the Group to fair value interest rate risk. The Group determines the relative proportions of its fixed rate and floating rate
contracts depending on the prevailing market conditions. As at 30 June 2018, the Group’s long-term interest-bearing debt at variable
rates and fixed rates as illustrated below:
30 June 2018 31 December 2017
Debt at fixed rates 2,274,000,000 1,425,000,000
Debt at variable rates 90,000,000 129,120,000
Total 2,364,000,000 1,554,120,000
The Group continuously monitors the interest rate position of the Group. Increases in interest rates will increase the cost of new
borrowing and the interest expenses with respect to the Group’s outstanding floating rate borrowings, and therefore could have a
material adverse effect on the Group’s financial position. The Group makes adjustments timely with reference to the latest market
conditions, which includes increasing/decreasing long-term fixed rate debts at the anticipation of increasing/decreasing interest rate.
(2) Credit risk
Credit risk is managed on the grouping basis. Credit risk mainly arises from cash at bank, notes receivable, accounts receivable, other
receivables.
The Group expects that there is no significant credit risk associated with cash at bank since they are mainly deposited at state-owned
banks and other medium or large size listed banks. Management does not expect that there will be any significant losses from
non-performance by these counterparties. Furthermore, as the Group’s bank acceptance notes receivable are generally accepted by
the state-owned banks and other large and medium listed banks, management believes the credit risk should be limited.
In addition, the Group has policies to limit the credit exposure on accounts receivable, other receivables and trade acceptance notes
receivable. The Group assesses the credit quality of and sets credit limits on its customers by taking into account their financial
position, the availability of guarantee from third parties, their credit history and other factors such as current market conditions. The
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credit history of the customers is regularly monitored by the Group. In respect of customers with a poor credit history, the Group will
use written payment reminders, or shorten or cancel credit periods, to ensure the overall credit risk of the Group is limited to a
controllable extent.
(3) Liquidity risk
Cash flow forecasting is performed by each subsidiary of the Group and aggregated by the Group’s finance department in its
headquarters. The Group’s finance department at its headquarters monitors rolling forecasts of the Group's short-term and long-term
liquidity requirements to ensure it has sufficient cash reserve, while maintaining sufficient headroom on its undrawn committed
borrowing facilities from major financial institutions so that the Group does not breach borrowing limits or covenants on any of its
borrowing facilities to meet the short-term and long-term liquidity requirements.
As at 30 June 2018, the Group had net current liabilities of approximately RMB 1,466 million and committed capital expenditures of
approximately RMB 218 million. Management will implement the following measures to ensure the liquidation risk limited to a
controllable extent:
(a) The Group will have steady cash inflows from operating activities;
(b) The Group will pay the debts that mature and finance the construction projects through the existing bank facilities;
(c) The Group will closely monitoring the payment of construction expenditure in terms of payment time and amount.
The financial liabilities of the Group at the balance sheet date are analysed by their maturity date below at their undiscounted
contractual cash as follows:
30 June 2018
Within 1 year 1 to 2 years 2 to 5 years Over 5 years Total
Short-term borrowings 4,044,317,738 4,044,317,738
Notes payable 208,201,622 208,201,622
Accounts payable 1,331,128,942 1,331,128,942
Other payables 620,540,633 620,540,633
Interest payable 73,371,196 73,371,196
Dividend payable 4,875,583 4,875,583
Other current liabilities 300,000 300,000
Non-current liabilities due 945,751,458 945,751,458
within one year
Long-term payables 641,223,971 224,990,046 866,214,017
Long-term borrowings 124,645,000 124,645,000 2,417,851,740 2,667,141,740
Total 7,353,132,172 765,868,971 2,642,841,786 10,761,842,929
31 December 2017
Within 1 year 1 to 2 years 2 to 5 years Over 5 years Total
Short-term borrowings 3,810,013,826 3,810,013,826
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CSG Semi-annual Report 2018
Notes payable 213,401,622 213,401,622
Accounts payable 1,400,166,042 1,400,166,042
Interest payable 34,032,740 34,032,740
Other payables 619,324,354 619,324,354
Other current liabilities 300,000 300,000
Non-current liabilities due 911,348,902 911,348,902
within one year
Long-term payables 600,436,759 561,357,488 1,161,794,247
Long-term borrowings 80,169,450 117,889,436 1,580,649,809 1,778,708,695
Total 7,068,756,936 718,326,195 2,142,007,297 9,929,090,428
XI. Disclosure of fair value
1. Fair value of financial assets and financial liabilities not measured at fair value
The Group’s financial assets and financial liabilities measured at amortized cost mainly include: accounts receivable, short-term
borrowings, accounts payable, long term borrowings, bonds payable , long-term payables, ect.
Except for financial liabilities listed below, book value of the other financial assets and liabilities not measured at fair value is a
reasonable approximation of their fair value.
30 June 2018 31 December 2017
Carrying amount Fair value Carrying amount Fair value
Financial liabilities -
Medium term notes 2,000,000,000 2,005,577,600 1,200,000,000 1,171,444,800
Total 2,000,000,000 2,005,577,600 1,200,000,000 1,171,444,800
The fair values of payables and medium-term notes are the present value of the contractually determined stream of future cash flows
at the rate of interest applied at that time by the market to instruments of comparable credit status and providing substantially the
same cash flows on the same terms, thereinto bonds payable belongs to Level 1 and medium term notes belong to Level 2.
XII. Related party and related Transaction
1. The subsidiaries
The general information and other related information of the subsidiaries are set out in attached note.
2. Joint venture of the Company
On June 30, 2018, the Company has no joint venture.
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3. Other related parties
Name of other related parties Relations between other related parties and the Company
Persons acting in concert with the first majority shareholder of the
Shenzhen Jushenghua Co. Ltd.
Group
Yichang Hongtai Real Estate Co. Ltd Other related parties and their affiliates.
4. Receivables from related parties
(1) Receivable item
Name of the Closing banlance Opening banlance
Related parties
item Book balance Bad debt provision Book balance Bad debt provision
Other Yichang Hongtai Real
171,000,000 3,420,000 171,000,000 3,420,000
receivables Estate Co. Ltd
5. Related party commitment
The commitments in relation to related parties contracted for but not yet necessary to be recognised on the balance sheet by the
Group as at the balance sheet date are as follows:
On 22 November 2016, the Company received a letter from its shareholder, Jushenghua, stating that to support the Group’s steady
operation and development, Jushenghua, as the shareholder of the Company, would like to offer interest-free borrowings with the
total amount of RMB2 billion to the Company or through related parties designated by it. For any borrowing drawn, its repayment
date is negotiated by the Company and Jushenghua upon withdrawal. When a borrowing is due, if an extension is needed, the
Company can apply to the actual lender based on the Company’s operation; where the actual lender agrees with the extension
application, the term of the borrowing is extended accordingly.
XIII. Share Payment
1. Overall situation of share payment
√ Applicable □ Non-applicable
On December 11, 2017, reviewed and approved by the Group's eighth session of the Board of Directors, the Group implemented the
2017 A Share Restricted Stock Incentive Plan. The incentive targets for the restricted shares granted under this plan include company
directors and senior management personnel. A total of 454 core management teams, company technology members and main
employees. The first grant date of this restricted stock was December 11, 2017. The company granted 97,511,654 restricted shares for
the first time to 454 incentive targets. The initial grant price was 4.28RMB per share. Reserved restricted stock ending balance
17,046,869 shares, the grant price has not been determined. The shares granted of the first time has been registered and listed.
This incentive plan is valid for 48 months from the date of grant of the restricted stock to the date of unlocking of all restricted stocks
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CSG Semi-annual Report 2018
or the completion of repurchase and cancellation. During the unlocking/exercise period, if the unlocking/exercise condition specified
in the incentive plan is reached, the restricted stock granted is unlocked in three phases after 12 months from the grant date.
Unlock Schedule Unlock Time Unlock Ratio
First unlock from the date of the first transaction 12 months after the award date to the date of 40%
the last transaction within 24 months from the grant date.
Second unlock from the date of the first trading day 24 months after the grant date to the date of 30%
the last trading day within 36 months from the grant date
Third unlock from the date of the first trading day 36 months after the grant date to the day of 30%
the last trading day within 48 months from the grant date
2. Equity-settled share payment
√ Applicable □ Non-applicable
Method for Determining the Fair Value of Equity Black-Scholes Model
Instruments on the Grant Date
Determination of the number of vesting equity Based on the latest information on the change in the number of
instruments exercisable rights and the completion of performance indicators, the
number of equity instruments that are expected to be exercised is
revised.
Reasons for significant differences between current Not applicable
estimates and previous estimates
Cumulative amount of equity-settled share-based
103,830,195
payment in capital reserves
Total equity confirmed by equity-settled
95,635,500
share-based payment in this period
According to the relevant provisions of Accounting Standards for Business Enterprises No. 11 - Share Payment and Enterprise
Accounting Standard No. 22 - Recognition and Measurement of Financial Instruments, the Group uses the Black-Scholes model (BS
model) as a pricing model, deducting incentive objects. The fair value of the restricted stock will be used after the lock-in costs that
are required to obtain the rational expected return from the sales restriction period are lifted in the future. The Group will, on each
balance sheet date of the lock-in period, revise the number of restricted stocks that are expected to be unlockable based on the newly
obtained changes in the number of unlockable persons and performance indicators, and follow the fair value of the restricted stock
grant date. The services obtained during the current period are included in the relevant costs or expenses and capital reserves.
The Group actually granted restricted stocks of 97,511,654 shares in 2017, and the total fair value of the equity instruments granted
to the incentive target for the first day of grant was RMB 289,519,900, the total fair value as the total cost of the company's equity
incentive plan will be confirmed in stages according to the unlocking/exercise ratio during the implementation of the equity incentive
plan, and will be included in the “management fees” and “capital” of each period accordingly.
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CSG Semi-annual Report 2018
In the first half of 2018, the Group achieved conditions for unlocking restricted stocks. In the current period, the relevant cost sharing
amount of the incentive plan was recognized as RMB 95,635,500.
3. Share payment in cash
□Applicable √ Non-applicable
XIV. Commitments and contingencies
1. Significant commitments
Important commitments on balance sheet date.
(1) Capital commitments
Capital expenditures contracted for by the Group at the balance sheet date but are not yet necessary to be recognized on the balance
sheet are as follows:
30 June 2018 31 December 2017
Buildings, machinery and equipment 217,726,070 150,418,893
(2) Operating lease commitments
The future minimum lease payments due under the signed irrevocable operating leases contracts are summarized as follows:
30 June 2018 31 December 2017
Within 1 year 2,911,953 3,675,748
1 to 2 years 1,944,336 1,914,948
2 to 3 years 1,300,108 1,472,224
Over 3 years 2,656,252 3,443,641
Total 8,812,649 10,506,561
XV. Other significant events
1. Segment information
(1) Definition foundation and accounting policy of segment
The Group's business activities are categorised by product and service as follows:
- Glass segment, engaged in production and sales of float glass and engineering glass and other building energy -
saving materials, the silica for the production thereof, etc.
- Solar energy segment, engaged in manufacturing and sales of polycrystalline silicon and solar battery and
applications, etc.
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CSG Semi-annual Report 2018
- Electronic glass and display segment is responsible for production and sales of display components and special
ultra-thin glass products, etc.
The reportable segments of the Group are the business units that provide different products or service. Different businesses require
different technologies and marketing strategies. The Group, therefore, separately manages the production and operation of each
reportable segment and Estimates their operating results respectively, in order to make decisions about resources to be allocated to
these segments and to assess their performance.
Inter-segment transfer prices are measured by reference to selling prices to third parties.
The assets are allocated based on the operations of the segment and the physical location of the asset. The liabilities are allocated
based on the operations of the segment. Expenses indirectly attributable to each segment are allocated to the segments based on the
proportion of each segment’s revenue.
(2)Financial information of segment
Unit: RMB
Electronic glass
Glass industry and displays Solar energy industry Others Unallocated Elimination Total
Revenue from external
3,612,878,032 436,685,900 1,420,997,880 607,786 5,471,169,598
customers
Inter-segment revenue 52,785,600 242,621 16,016,462 30,101,282 -99,145,965
Interest income 1,136,795 87,494 162,504 311 21,646,314 23,033,418
Interest expenses 93,306,653 10,576,695 50,461,160 49,186,999 203,531,507
Asset impairment
3,069,970 -136,967 766,724 -46,118 3,653,609
losses
Depreciation and
296,233,712 64,199,352 157,440,200 12,005 3,593,844 521,479,113
amortisation expenses
Total profit/(loss) 515,942,875 62,163,871 -58,388,826 -13,019 -96,162,032 -3,089,648 420,453,221
Income tax
72,809,465 4,251,301 -13,871,995 -1,817,667 61,371,104
(expenses)/income
Net profit/(loss) 443,133,410 57,912,570 -44,516,831 -13,019 -94,344,365 -3,089,648 359,082,117
Total assets 8,890,658,347 3,147,841,600 5,031,590,904 653,411 3,454,067,494 20,524,811,756
Total liabilities 3,288,898,941 754,504,302 1,506,784,163 2,504,400 5,855,655,900 11,408,347,706
Increase in non-current
106,223,491 146,160,834 19,499,210 3,892,727 275,776,262
assets (i)
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CSG Semi-annual Report 2018
(3) Other statement
The Group’s revenue from external customers domestically and in foreign countries or geographical areas, and the total non-current
assets other than financial assets and deferred tax assets located domestically and in foreign countries or geographical areas are as
follows:
Revenue from external customers Jan.-Jun. 2018 Jan.-Jun. 2017
Mainland 4,691,225,341 4,453,794,331
Hong Kong 152,221,834 159,110,247
Europe 37,480,049 10,469,923
Asia (other than Mainland and Hong Kong) 538,291,685 284,803,871
Australia 29,949,405 23,668,506
North America 18,072,258 9,235,672
Other regions 3,929,026 3,255,311
Total 5,471,169,598 4,944,337,861
Total non-current assets 30 June 2018 31 December 2017
Mainland 14,273,593,858 14,505,740,522
Hong Kong 12,915,627 12,798,642
Total 14,286,509,485 14,518,539,164
The Group has a large number of customers, but no revenue from a single customer exceed 10% or more of the Group’s revenue.
XVI. Notes to Financial Statements of the Parent Company
1. Other accounts receivable
(1) Other accounts receivable disclosed by category:
Unit: RMB
Closing balance Openning balance
Bad debt
Book balance Book balance Bad debt provision
Category provision
Book value Book value
Propor
Amount Proportion Amount Amount Proportion Amount Proportion
tion
Other accounts
receivable
withdrawn bad
debt provision 2,814,602,307 100% 3,462,906 2,811,139,401 2,403,843,840 100% 3,509,024 2,400,334,816
according to
credit risks
characteristics
Total 2,814,602,307 100% 3,462,906 2,811,139,401 2,403,843,840 100% 3,509,024 2,400,334,816
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CSG Semi-annual Report 2018
Other accounts receivable with large amount and were provided bad debt provisions individually at end of period.
□ Applicable √ Non-applicable
Other accounts receivable in the portfolio on which bad debt provisions were provided on aging analysis basis
□ Applicable √ Non-applicable
Other accounts receivable in the portfolio on which bad debt provisions were provided on percentage basis
√ Applicable □ Non-applicable
Unit: RMB
Closing balance
Name of portfolio
Other receivable accounts Bad debt provision proportion%
portfolio 1 2,145,321 42,906 2%
portfolio 2 2,812,456,986 3,420,000
Total 2,814,602,307 3,462,906
Other receivable accounts in the portfolio on which bad debt provisions were provided on other basis
□ Applicable √ Non-applicable
(2) Accounts receivable withdraw, reversed or collected during the reporting period
The amount of provision for bad debts during the report period was RMB760. The amount of the reversed or collected part during the
report period was RMB 46,878.
(3) Other accounts receivable classified by the nature of accounts
Unit: RMB
Nature of accounts Ending book balance Beginning book balance
Accounts receivable of related party 2,812,456,986 2,399,392,648
Others 2,145,321 4,451,192
Total 2,814,602,307 2,403,843,840
(4) Top 5 of the closing balance of the other accounts receivable collated according to the arrears party
Unit: RMB
Proportion of the total Closing
Nature of
Name of the company Closing balance Ages year end balance of the balance of bad
accounts
accounts receivable (%) debt provision
Yichang CSG Polysilicon Co., Ltd. Subsidiary 1,377,570,600 Within 1 year 49%
Yichang CSG Display Co.,Ltd.. Subsidiary 307,293,852 Within 1 year 11%
Qingyuan CSG Energy Conservation Subsidiary
256,179,923 9%
New Meterials Co., Ltd. Within 1 year
Yichang Hongtai Real Estate Co. Ltd Related party 171,000,000 4 to 5 years 6% 3,420,000
Shenzhen Nanbo Display Technology Subsidiary 144,702,069 Within 1 year 5%
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CSG Semi-annual Report 2018
Co., Ltd.
Total -- 2,256,746,444 -- 80% 3,420,000
2. Long-term equity investment
Unit: RMB
Closing balance Opening balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Investment in
4,911,117,578 15,000,000 4,896,117,578 4,810,987,652 15,000,000 4,795,987,652
subsidiaries
Total 4,911,117,578 15,000,000 4,896,117,578 4,810,987,652 15,000,000 4,795,987,652
(1) Inventment in subsidiaries
Unit: RMB
Provision for Closing balance
Opening Increase in Decrease in
Invested company Closing balance impairment of the of impairment
balance the term the term
current period provision
Chengdu CSG Glass Co., Ltd. 146,977,347 3,480,978 150,458,325
Sichuan CSG Energy Conservation 115,546,714 2,989,152 118,535,866
Tianjin Energy Conservation Glass Co. Ltd 243,191,428 3,366,378 246,557,806
Dongguan CSG Architectural Glass Co., Ltd. 193,916,049 3,467,028 197,383,077
Dongguan CSG Solar Glass Co., Ltd. 349,801,154 4,135,152 353,936,306
Yichang CSG Polysilicon Co., Ltd. 633,464,168 5,906,676 639,370,844
Wujiang CSG North-east Architectural Glass
251,516,189 2,363,622 253,879,811
Co., Ltd.
Hebei CSG Glass Co., Ltd. 262,265,341 3,115,692 265,381,033
China Southern Glass (Hong Kong) Limited 85,802,602 704,790 86,507,392
Wujiang CSG Glass Co., Ltd. 562,527,754 4,063,524 566,591,278
Hebei Panel Glass Co., Ltd. 243,271,470 2,435,250 245,706,720
Jiangyou CSG Mining Development Co.
100,837,599 1,313,604 102,151,203
Ltd.
Xianning CSG Glass Co Ltd. 177,295,494 2,960,502 180,255,996
Xianning CSG Energy Conservation Glass Co
161,543,844 3,060,774 164,604,618
Ltd.
Qingyuan CSG Energy Saving New Materials
300,376,848 2,231,838 302,608,686
Co.,Ltd
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CSG Semi-annual Report 2018
Shenzhen CSG Financial Leasing Co., Ltd. 133,500,000 133,500,000
Shenzhen CSG PV Energy Co., Ltd. 100,052,985 618,360 100,671,345
Shenzhen Nanbo Display Technology Co., Ltd. 542,691,888 6,393,726 549,085,614
Xianning CSG Photoelectric Glass Co., Ltd. 38,470,534 39,323,724 77,794,258
Others(ii) 167,938,244 8,199,156 176,137,400 15,000,000
Total 4,810,987,652 100,129,926 4,911,117,578 15,000,000
(2) Other notes
(i) As at June 30, 2018, long-term equity investment in subsidiaries contained the restricted stocks granted by the Company to the
Employees of subsidiaries of the company, and the Company did not charge any fees for the restricted stocks which was deemed as
an increase of costs of Long-term equity investment for subsidiaries by RMB 177,962,267 (31 December 2017: RMB114,582,341).
(ii) The subsidiaries which have made provision for impairment were basically closed down in the previous year, and the provision for
impairment for the long-term equity investment of them had been made by the Company according to the recoverable amount.
3. Operating income and operating costs
Unit: RMB
Occurred in this term Occurred in previous term
Item
Income Costs Income Costs
Main business
Other business 30,709,068 27,295,266
Total 30,709,068 27,295,266
4. Investment income
Unit: RMB
Item Occurred in this term Occurred in previous term
Long-term equity investment accounted by cost method 231,537,606
Total 231,537,606
XVII. Supplementary Information
1. Statement of non-recurring gains and losses
√Applicable □ Not applicable
Unit: RMB
Item Amount Note
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CSG Semi-annual Report 2018
Gains or losses on disposal of non-current assets -567,830
Government grants recognised in profit or loss for current period (not including the subsidy enjoyed in
22,013,800
quota or ration according to national standards, which are closely relevant to enterprise’s business)
Non-operating income and expenses other than aforesaid items 1,567,244
Less: Effect of income tax 3,453,960
Effect of minority interests 771,819
Total 18,787,435 --
Explain reasons for the extraordinary profit (gain)/loss defined by Q&A Announcement No.1 on Information Disclosure for
Companies Offering Their Securities to the Public --- Extraordinary Profit/loss, and the items defined as recurring profit (gain)/loss
according to the lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies
Offering Their Securities to the Public --- Extraordinary Profit/loss.
□Applicable √ Not applicable
2. Return on net assets and earnings per share
The weighted Earnings per share
Profit in the report period average net Basic earnings per Diluted earnings per
assets ratio share (RMB/share) share (RMB/share)
Net profit attributable to shareholders of the listed company(RMB) 4.09% 0.13 0.12
Net profit attributable to shareholders of the listed company after
3.87% 0.12 0.12
deducting non-recurring gains and losses(RMB)
3. Difference of accounting data under domestic and overseas accounting standards
(1) Differences of the net profit and net assets disclosed in financial report prepared under international
and Chinese accounting standards
□ Applicable √ Not applicable
(2) Difference of the net profit and net assets disclosed in financial report prepared under overseas and
Chinese accounting standards
□ Applicable √ Not applicable
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CSG Semi-annual Report 2018
Section IX. Documents available for Reference
I. Text of the Semi-annual Report carrying the legal representative’s signature;
II. Text of the financial report carrying the signatures and seals of the legal representative,
responsible person in charge of accounting and person in charge of financial institution;
III. All texts of the Company’s documents and original public notices disclosed in the papers
appointed by CSRC in the report period.
Board of Directors of
CSG Holding Co., Ltd.
28 August 2018
133
