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南 玻B:2019年第三季度报告全文(英文版)2019-10-28  

						      CSG HOLDING CO., LTD.


THE THIRD QUARTER REPORT 2019




       Chairman of the Board:
             CHEN LIN

           October 2019
    CSG HOLDING CO., LTD.                                                     The Third Quarter Report 2019




                               Section I. Important Notice

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.

All directors were present at the meeting of the Board for deliberating the Third Quarter Report of
2019 of the Company in person.

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 Third Quarter Report of 2019 of the Company is true, accurate and
complete.

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.




                                                   1
        CSG HOLDING CO., LTD.                                                                              The Third Quarter Report 2019




                      Section II. The Basic Information of the Company

I. Main accounting data and financial indices

Whether retrospective adjustment has been carried out on financial reports of previous periods or not
□Yes      √ No

                                                                                                               Increase/decrease in
                                                                               The end of the previous
                                               The end of the report period                               comparison with the end of the
                                                                                         year
                                                                                                                     previous year

Total assets (RMB )                                          18,422,844,539             19,114,234,184                               -3.62%

Net assets attributable to shareholders of
                                                              9,546,827,355               9,103,154,571                              4.87%
the Company (RMB )

                                                                   Increase/decrease in
                                                                                                                      Increase/decrease in
                                                                   comparison with the          From 1 January to
                                               The report period                                                      comparison with the
                                                                    same period of the        30 September 2019
                                                                                                                      same period of 2018
                                                                        previous year

Operating income (RMB)                            2,773,417,909                     3.46%           7,661,655,487                    -6.01%

Net profit attributable to shareholders of
                                                    166,970,717                     43.59%            544,313,118                    16.03%
the listed company (RMB)
Net profit attributable to shareholders of
the listed company after deducting                  135,913,151                     57.67%            419,852,595                    0.05%
non-recurring gains and losses (RMB)
Net cash flow arising from operating
                                                      --                      --                    1,508,389,800                    6.92%
activities (RMB)

Basic earnings per share (RMB/Share)                        0.06                        50%                   0.18                   12.50%

Diluted earnings per share (RMB/Share)                      0.05                        25%                   0.17                   13.33%

Weighted average ROE                                       1.77%                    0.43%                   5.84%                    0.45%



Items and amounts of extraordinary profit (gains)/loss
√Applicable       □ Not applicable
                                                                                                                               Unit: RMB

                                                                                    Amount from the beginning of year
                                        Item                                                                                     Note
                                                                                        to the end of the report period

Gains/losses from the disposal of non-current asset (including the write-off that
                                                                                                                    118,401
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                                143,444,934
closely relevant to enterprise’s business)

                                                                    2
        CSG HOLDING CO., LTD.                                                                               The Third Quarter Report 2019


Profits and losses from external entrusted loans                                                                   6,615,566

Other non-operating income and expenditure except for the aforementioned
                                                                                                                     -998,605
items

Less: Impact on income tax                                                                                        20,592,883

     Impact on minority shareholders’ equity (post-tax)                                                           4,126,890

Total                                                                                                            124,460,523         --

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
It did not exist that the items were defined as recurring profit (gain)/loss according to the definition or the list 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.


II. Total of shareholders at the end of the report period and particulars about shareholdings
of the top ten shareholders

1. Particulars about the total number of common shareholders and preference shareholders with voting
rights recovered as well as the shareholdings of the top ten shareholders

                                                                                                                                  Unit: Share

Total number of common shareholders                          Total number of preference shareholders with voting rights
                                                   145,442                                                                                  0
at the end of the report period                              recovered at end of report period (if applicable)

                                      Particulars about the shareholdings of the top ten shareholders

                                                                                                                         Number of share
                                                                           Proportion                   Amount of
                                                                                         Amount of                        pledged/frozen
           Name of shareholder                 Nature of shareholder       of shares                    restricted
                                                                                        shares held                      Share
                                                                           held (%)                     shares held                Amount
                                                                                                                         status

Foresea Life Insurance Co., Ltd. – Haili Domestic non state-owned
                                                                               15.01% 466,386,874                    0
Niannian                                    legal person

Foresea Life Insurance Co., Ltd. –         Domestic non state-owned
                                                                                3.81% 118,425,007                    0
Universal Insurance Products                legal person

                                            Domestic non state-owned
Shenzhen Jushenghua Co., Ltd.                                                   2.79% 86,633,447                     0 Pledged    69,300,000
                                            legal person

Foresea Life Insurance Co., Ltd. – Own Domestic non state-owned
                                                                                2.08% 64,765,161                     0
Fund                                        legal person

Central Huijin Asset Management Ltd.        State-owned legal person            1.86% 57,915,488                     0

China Galaxy International Securities
                                            Foreign legal person                1.34% 41,544,370                     0
(Hong Kong) Co., Limited

                                                                       3
      CSG HOLDING CO., LTD.                                                                                The Third Quarter Report 2019


UBS       AG                                Foreign legal person               1.18% 36,575,937                 0

China Merchants Securities (HK) Co.,
                                            State-owned legal person           1.05% 32,516,355                 0
Limited

Shenzhen International Holdings (SZ)
                                            State-owned legal person           0.94% 29,095,000                 0
Limited

VANGUARD EMERGING MARKETS
                                            Foreign legal person               0.62% 19,320,233                 0
STOCK INDEX FUND

                                    Particulars about top ten shareholders with unrestricted shares held

                                                                Amount of                             Type of shares
                 Name of shareholder                        unrestricted shares
                                                                                                 Type                     Amount
                                                                    held

Foresea Life Insurance Co., Ltd. – Haili Niannian                   466,386,874 RMB ordinary shares                       466,386,874

Foresea Life Insurance Co., Ltd. – Universal
                                                                     118,425,007 RMB ordinary shares                       118,425,007
Insurance Products

Shenzhen Jushenghua Co., Ltd.                                          86,633,447 RMB ordinary shares                       86,633,447

Foresea Life Insurance Co., Ltd. – Own Fund                           64,765,161 RMB ordinary shares                       64,765,161

Central Huijin Asset Management Ltd.                                   57,915,488 RMB ordinary shares                       57,915,488

China Galaxy International Securities (Hong Kong)
                                                                       41,544,370 Domestically listed foreign shares        41,544,370
Co., Limited

UBS       AG                                                           36,575,937 RMB ordinary shares                       36,575,937

China Merchants Securities (HK) Co., Limited                           32,516,355 Domestically listed foreign shares        32,516,355

Shenzhen International Holdings (SZ) Limited                           29,095,000 RMB ordinary shares                       29,095,000

VANGUARD EMERGING MARKETS STOCK
                                                                       19,320,233 Domestically listed foreign shares        19,320,233
INDEX FUND

                                                          Among shareholders as listed above, Foresea Life Insurance Co., Ltd.-Haili
                                                          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
Statement on associated relationship or consistent        related legal person of Foresea Life Insurance Co., Ltd, which held
action among the above shareholders:                      40,187,904 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 N/A
business (if applicable)

Whether the top ten shareholders or top ten shareholders with unrestricted shares carried out buy back deals in the report period
                                                                     4
        CSG HOLDING CO., LTD.                                                                          The Third Quarter Report 2019


□Yes    √ No
There were no buy back deals carried out by the top ten shareholders or top ten shareholders with unrestricted shares held in the
report period.


2. Total number of preference shareholders and particulars about the shareholdings of the top ten
preference shareholders

□Applicable     √ Not applicable




                                                                  5
     CSG HOLDING CO., LTD.                                                                     The Third Quarter Report 2019




                                       Section III. Important events

I. Particulars and explanations about significant changes in main accounting statements and
financial indices

√Applicable    □Not applicable
                                                                                                            Unit: RMB'0,000

                                                      30 September         31 December        Increased/Decreased
          Item of balance sheet               Note                                                                   Rate
                                                          2019                 2018                amount
Notes receivable                              (1)                49,176            71,938                 -22,762     -32%

Accounts receivable                           (2)                78,185            59,223                   18,962     32%

Inventories                                   (3)                81,431            60,014                   21,417     36%

Assets held for sale                          (4)                     -               4,598                 -4,598   -100%

Other non-current assets                      (5)                 9,013               5,683                  3,330     59%

Notes payable                                 (6)                19,145            10,515                    8,630     82%

Advance receipts                              (7)                26,818            20,663                    6,155     30%

Other payables                                (8)                30,946            55,275                 -24,329     -44%

Non-current liabilities due within one year   (9)            167,581               81,945                   85,636    105%

Long-term borrowings                          (10)           108,040              231,570                -123,530     -53%

Long-term payables                            (11)               19,054            52,991                 -33,937     -64%

Deferred income tax liabilities               (12)                3,307               2,212                  1,095     50%

Capital reserve                               (13)               73,051           109,534                 -36,483     -33%

Treasury stocks                               (14)               12,232            27,718                 -15,486     -56%

Special reserve                               (15)                 971                 607                    364      60%

Other comprehensive income                    (16)                 706                 508                    198      39%



                                                     From January to      From January to     Increased/Decreased
        Item of income statement              Note                                                                   Rate
                                                     September 2019       September 2018           amount

Credit impairment loss                        (17)                 -354               -555                    201     -36%

Asset impairment loss                         (18)              -13,533                   -               -13,533

Income from asset disposal                    (19)                  12                  -46                    58

Other income                                  (20)               14,344               5,476                  8,868    162%

Non-operating expenses                        (21)                 746                 149                    597     401%

Net amount of other comprehensive
                                              (22)                 198                 316                    -118    -37%
income after tax

                                                            6
        CSG HOLDING CO., LTD.                                                                           The Third Quarter Report 2019


Note:
(1) The decrease in notes receivable was mainly due to the discounted bills of some subsidiaries.
(2) The increase in accounts receivable was mainly due to the increase in revenue of the glass industry.
(3) The increase in inventories was mainly due to the increase in production capacity and strategic reserves of some subsidiaries.
(4) The decrease in assets held for sale was mainly due to the disposal of assets held for sale.
(5) The increase in other non-current assets was mainly due to the increase in prepaid projects and equipment.
(6) The increase in notes payable was mainly due to the slight increase in new notes issued by some companies in the current period.
(7) The increase in advance receipts was mainly due to the increase in advance receipts from the glass industry.
(8) The decrease in other payables was mainly due to the repurchase of restricted stocks.
(9) The increase in non-current liabilities due within one year was mainly due to the transfer of medium-term notes to non-current
liabilities due within one year.
(10) The decrease in long-term borrowings was mainly due to the transfer of medium-term notes to non-current liabilities due within
one year.
(11) The decrease in long-term payables was mainly due to the repayment of financing leases during the period.
(12) The increase in deferred income tax liabilities was mainly due to the increase in deferred income tax liabilities of certain
subsidiaries.
(13) The decrease in capital reserve was mainly due to the transfer of capital reserve into share capital and repurchase of restricted
stocks during the period.
(14) The decrease in treasury stocks was mainly due to the repurchase of restricted stocks.
(15) The increase in special reserve was mainly due to the increase in investment in safety production during the period.
(16) The increase in other comprehensive income was mainly due to the change in the translation difference of foreign currency
statements.
(17) The decrease in credit impairment loss was mainly due to the decrease in provision for bad debts of some subsidiaries.
(18) The increase in asset impairment loss was mainly due to the provision for impairment of fixed assets and construction in
progress during the period.
(19) The increase in income from asset disposal was mainly due to the disposal of non-current assets.
(20) The increase in other income was mainly due to the increase in amortization of government grants during the period.
(21) The increase in non-operating expenses was mainly due to the increase in compensation and donation expenses.
(22) The decrease in net amount of other comprehensive income after tax was mainly due to changes in the translation differences in
foreign currency statements.




                                                                    7
     CSG HOLDING CO., LTD.                                                                               The Third Quarter Report 2019


II. The progress of material events and the impact as well as the analysis of solutions

√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 May 14, 2018, the Company’s 2017 annual shareholders’ meeting deliberated and approved the resolution on the application for
registration and issuance of ultra-short-term financing bills. It agreed that the Company should register and issue ultra-short-term
financing bills with a registered amount not exceeding RMB 4 billion yuan (not subject to the restriction that the amount of
ultra-short-term issued shall not exceed 40% of net assets). With the period of validity of the quota not longer than two years, such
ultra-short-term financing bills will be issued by installments in accordance with the actual capital needs of the Company and the
situation of inter-bank market funds. On Sep. 17, 2018, the Chinese Association of Interbank Market Traders held its 63rd
registration meeting in 2018, and decided to approve the registration of the ultra-short-term financing bills with a total amount of 1.5
billion yuan and a validity period of two years. The ultra-short-term financing bills are underwritten jointly by Minsheng Bank of
China Limited and Industrial Bank Co., Ltd, and can be issued by installments within the validity period of registration.


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
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 10 December 2014, the First Extraordinary Shareholders’ General Meeting 2014 of CSG Holding Co., Ltd deliberated and
approved the proposal of application for registration and issuance of medium-term notes with total amount of RMB 1.2 billion at
most. On 21 May 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 Jul.14, 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 14 July 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 2 March
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
                                                                   8
     CSG HOLDING CO., LTD.                                                                              The Third Quarter Report 2019


issued the first medium-term notes with a total amount of 800 million yuan and a term of three years. The issue rate was 7%, and the
redemption date was 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.



5. Public issuance of corporate bonds

On March 2, 2017, the 2nd Extraordinary General Meeting of Shareholders in 2017 reviewed and approved “the Proposal on the
Public Issuance of Corporate Bonds for Qualified Investors". On February 27, 2019, the First Extraordinary General Meeting of
Shareholders in 2019 The “Proposal on Extending the Validity Period of the Shareholders' Meeting for the Public Offering of
Corporate Bonds to Qualified Investors” agreed to issue corporate bonds with a total issue of no more than RMB 2 billion and a term
of no more than 10 years.
On July 22, 2019, the Company received the “Approval of Approving CSG Holding Co., Ltd. to Issue Corporate Bonds to Qualified
Investors” issued by China Securities Regulatory Commission (CSRC [2019] No. 1140).


6. Approved by the interim meeting of the Eighth Board of Directors of the Company held on September 11, 2019, the Company
issued an entrusted loan with total amount of RMB 0.3 billion to Tengchong Yuezhou Water Investment Development Co., Ltd.. The
validity period of the entrusted loan was 3 months and the annual interest rate was 8.5%.



7.On October 10, 2017, the 3rd Meeting of the Eighth Board of Directors of the Company deliberated and approved 2017 Restricted
A- shares Incentive Plan of CSG Holding Co., Ltd (Draft ) and its summary, the Management Method of the Implementation and
Review of 2017 A-share Restricted Stock Incentive Plan of CSG Holding Co., Ltd and the Proposal on Applying the General
Meeting of Shareholders to Authorize the Board of Directors to Deal With the Related Matters on the Company’s 2017 Restricted
A-shares Incentive Plan. The above contents are detailed in the Announcement of the Resolution on the 3 rd Meeting of the Eighth
Board of Directors published on www.cninfo.com.cn on October 11, 2017 (Announcement No.: 2017-063). The Company’s
independent directors issued independent opinions on the issues involved with 2017 Restricted A-shares Incentive Plan.

On October 26, 2017, the Company convened the 5th Extraordinary General Meeting in 2017, which deliberated and approved the
above three proposals. The Proposal on Adjusting the Object and Quantity Granted of 2017 A-share Restricted Stock Incentive Plan
and the Proposal on Firstly Granted Restricted Shares to the Object of 2017 Restricted A-share were deliberated and approved on the
interim meeting of the Eighth Board of Directors which was convened on December 11, 2017. It determined December 11, 2017 as
the grant date, to grant 97,511,654 restricted shares to 454 objects at the grant price of RMB 4.28 yuan/share, with 17,046,869 shares
of reserved restricted shares.

The granting of shares was completed on December 25, 2017 and the specific content was detailed in the Announcement on
Completing the First Granting of 2017 Restricted Shares disclosed on www.cninfo.com.cn on December 22, 2017 (Announcement
No.:2017-079).

On July 20, 2018, the Company held an interim meeting of the Eighth Board of Directors and an interim meeting of the the Eighth
Board of Supervisors, and reviewed and approved the Proposal on Repurchase and Cancellation of Part of Restricted Stocks of
Restricted Stock Incentive Plan, and agreed to repurchase and cancel the total of 3,319,057 shares of all restricted stocks held by 15
unqualified original incentives. The independent directors of the Company issued a consent opinion. And on August 6, 2018, the 2nd
Extraordinary General Meeting in 2018 approved the proposal. As of September 10, 2018, the Company had completed the

                                                                   9
     CSG HOLDING CO., LTD.                                                                                The Third Quarter Report 2019


cancellation procedures for the above-mentioned restricted stocks in Shenzhen Branch of China Securities Depository and Clearing
Corporation Limited. The total number of shares of the Company was changed from 2,856,769,678 shares to 2,853,450,621 shares.

On September 13, 2018, the Company held an interim meeting of the Eighth Board of Directors and an interim meeting of the Eighth
Board of Supervisors, and reviewed and approved the Proposal on Granting Reserved Restricted Stocks of 2017 Restricted Stock
Incentive Plan for Incentive Objects, which determined September 13, 2018 as the grant date, to grant 9,826,580 restricted shares to
75 objects at the grant price of RMB 3.68 yuan/share. The independent directors issued independent opinions on the above proposal,
and the Company's board of supervisors re-checked the list of incentive objects on the grant date. The shares granted had been
registered in Shenzhen Branch of China Securities Depository and Clearing Corporation Limited and listed on September 28, 2018.
The total number of shares of the Company was changed from 2,853,450,621 shares to 2,863,277,201 shares.

On December 12, 2018, the Company held an interim meeting of the Eighth Board of Directors and an interim meeting of the Eighth
Board of Supervisors, and reviewed and approved the Proposal on Repurchase and Cancellation of Part of Restricted Stocks of
Restricted Stock Incentive Plan, and agreed to repurchase and cancel the total of 436,719 shares of all restricted stocks held by 8
unqualified original incentive objects. The proposal was approved by the 3rd Extraordinary General Meeting in 2018 on December
28, 2018. As of June 18, 2019, the Company had completed the cancellation procedures for the above-mentioned restricted stocks in
Shenzhen Branch of China Securities Depository and Clearing Corporation Limited and the specific content was detailed in the
Announcement on the Completion of Repurchasing Part of Restricted Stocks disclosed on www.cninfo.com.cn on June 19, 2019
(Announcement No.: 2019-040).

On December 12, 2018, the Company held an interim meeting of the Eighth Board of Directors and an interim meeting of the Eighth
Board of Supervisors, and reviewed and approved the Proposal on the First Achievement of Lifting the Restriction Conditions for the
First Granted Shares of the Company's 2017 A-share Restricted Stock Incentive Plan in the First Unlock Period. In addition to the
fact that the eight incentive objects did not have the conditions to unlock restricted stocks due to their resignation, the total number of
incentive objects who reached the conditions for unlocking restricted stocks was 431 persons, and the number of restricted stocks that
could be unlocked was 43,353,050 shares, accounting for 1.51% of the current total share capital of the Company. The board of
supervisors, independent directors, and law firms separately issued clear consent opinions. The unlock date of the restricted stocks,
which was the date of listing, was December 21, 2018.

On April 16, 2019, the Company held the 8th Meeting of the Eighth Board of Directors and the 8th Meeting of the Eighth Board of
Supervisors, which reviewed and approved the Proposal on Repurchase and Cancellation of Part of Restricted Stocks of Restricted
Stock Incentive Plan and the Proposal on Repurchase and Cancellation of Restricted Stocks that Had Not Reached the Unlocking
Condition of the Second Unlock Period, and agreed to repurchase and cancel the total of 3,473,329 shares of all restricted stocks held
by 14 unqualified original incentives, as well as the total of 33,734,276 shares of 483 incentive objects that did not meet the
unlocking conditions of the second unlock period. The independent directors of the Company issued a consent opinion. And on May
9, 2019, the proposals were approved by the 2018 Annual General Meeting of Shareholders. As of June 18, 2019, the Company had
completed the cancellation procedures for the above-mentioned restricted stocks in Shenzhen Branch of China Securities Depository
and Clearing Corporation Limited and the specific content was detailed in the Announcement on the Completion of Repurchasing
Part of Restricted Stock disclosed on www.cninfo.com.cn on June 19, 2019 (Announcement No.: 2019-040).

On September 16, 2019, the Company held an interim meeting of the Eighth Board of Directors and an interim meeting of the Eighth
Board of Supervisors, and reviewed and approved the Proposal on Repurchase and Cancellation of Part of Restricted Stocks of
Restricted Stock Incentive Plan, and agreed to repurchase and cancel the total of 1,281,158 shares of all restricted stocks held by 18
unqualified original incentive objects. The proposal was approved by the 4th Extraordinary General Meeting in 2019 on October 10,
2019. The proposal was approved by the 4th Extraordinary General Meeting in 2019 on October 10, 2019. The above restricted stock
has not completed the cancellation procedure.


                                                                    10
     CSG HOLDING CO., LTD.                                                                             The Third Quarter Report 2019


On September 16, 2019, the Company held an interim meeting of the Eighth Board of Directors and an interim meeting of the Eighth
Board of Supervisors, and reviewed and approved the Proposal on the First Achievement of Lifting the Restriction Conditions for the
Reserved Granted Shares of the Company's 2017 A-share Restricted Stock Incentive Plan in the First Unlock Period. In addition to
the fact that 3 incentive objects did not have the conditions to unlock restricted stocks due to their resignation, the total number of
incentive objects who reached the conditions for unlocking restricted stocks was 71 persons, and the number of restricted stocks that
could be unlocked was 3,909,350 shares, accounting for 0.13% of the current total share capital of the Company. The board of
supervisors, independent directors, and law firms separately issued clear consent opinions. The unlock date of the restricted stocks,
which was the date of listing, was September 25, 2019.

According to the relevant provisions of the "Accounting Standards for Business Enterprises", the implementation of the Company's
restricted stocks will have certain impact on the Company's financial status and operating results in the next few years. The results
are subject to the annual audit report issued by the accounting firm.




Implementation progress of share buyback

□Applicable    √Not applicable


Implementation progress of share buyback reduction through centralized bidding
□Applicable    √Not applicable


III. Commitments made by the actual controller, the shareholders, the related parties, the
purchasers and the Company which failed to be fulfilled in time during the report period

□ Applicable   √Not applicable
There were no commitments made by the actual controller, the shareholders, the related parties, the purchasers or the Company
which failed to be fulfilled in time during the report period.


IV. Prediction of business performance of 2019

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.
□ Applicable   √Not applicable


V. Securities investment

□ Applicable   √Not applicable
The Company had no securities investment in the report period.


VI. Entrusted financial management

□ Applicable   √Not applicable
The Company had no entrusted financial management in the report period.




                                                                   11
      CSG HOLDING CO., LTD.                                                                             The Third Quarter Report 2019


VII. Derivatives investment

□ Applicable   √Not applicable
The Company had no derivatives investment in the report period.


VIII. Reception of research, communication and interview in the report period

□ Applicable   √Not applicable
The Company had no reception of research, communication or interview in the report period.


IX. Illegal external guarantee

□ Applicable   √Not applicable
The Company had no illegal external guarantee in the report period.


X. Particulars about non-operating fund of listed company which is occupied by controlling
shareholder and its affiliated enterprises

□ Applicable   √Not applicable
In the report period, it did not exist that non-operating fund of listed company was occupied by controlling shareholder or its
affiliated enterprises.




                                                                  12
     CSG HOLDING CO., LTD.                                                             The Third Quarter Report 2019




                                      Section IV. Financial Report

(I) Financial Statements

1. Consolidated Balance Sheet
Prepared by CSG Holding Co., Ltd.
                                              September 30, 2019
                                                                                                         Unit: RMB

                               Item                        September 30, 2019             December 31, 2018

Current asset:

Monetary capital                                                       1,863,545,157                 2,226,447,720

Notes receivable                                                         491,760,141                   719,375,448

     Accounts receivable                                                 781,854,555                   592,233,312

     Prepayments                                                         115,332,062                    91,176,675

     Other receivables                                                   204,222,903                   207,424,295

     Accounts receivable                                                 814,306,954                   600,139,750

     Holding assets for sale                                                                            45,983,520

     Other current assets                                                428,468,741                   445,327,449

Total current assets                                                   4,699,490,513                 4,928,108,169

Non-current assets:

     Fixed assets                                                     10,003,094,368                 9,930,843,775

     Construction in progress                                          1,981,632,062                 2,559,179,442

     Intangible assets                                                 1,039,671,918                 1,035,731,324

     Development expenditure                                              57,602,714                    74,549,257

     Goodwill                                                            376,720,156                   376,720,156

     Long-term prepaid expenses                                           11,414,449                    12,746,609

     Deferred tax assets                                                 163,089,054                   139,529,518

     Other non-current assets                                             90,129,305                    56,825,934

Total non-current assets                                              13,723,354,026                14,186,126,015

Total assets                                                          18,422,844,539                19,114,234,184

Current liabilities:

     Short-term loan                                                   2,860,000,039                 2,922,679,590

     Notes payable                                                       191,449,162                   105,150,000

     Accounts payable                                                  1,031,457,587                 1,209,859,263

                                                     13
     CSG HOLDING CO., LTD.                                                                                 The Third Quarter Report 2019


     Advance payment                                                                      268,182,351                      206,631,008

     Payroll payable                                                                      227,888,841                      266,459,151

     Taxes payable                                                                        124,296,873                      111,967,365

     Other payables                                                                       309,463,325                      552,751,187

Including: interest payable                                                                42,358,192                       73,612,703

Dividend payable                                                                            3,043,798                        2,846,362

     Non-current liabilities due within one year                                         1,675,813,653                     819,448,742

     Other current liabilities                                                                   300,000                       300,000

Total current liabilities                                                                6,688,851,831                   6,195,246,306

Non-current liabilities:

     Long term borrowing                                                                 1,080,400,000                   2,315,700,000

     Long-term payables                                                                   190,542,654                      529,910,796

     Deferred income                                                                      519,119,390                      601,825,780

     Deferred income tax liabilities                                                       33,071,122                       22,118,840

Total non-current liabilities                                                            1,823,133,166                   3,469,555,416

Total Liabilities                                                                        8,511,984,997                   9,664,801,722

Owners' equity:

     Share capital                                                                       3,108,196,163                   2,863,277,201

     Capital reserve                                                                      730,505,435                    1,095,339,421

     Less: Treasury shares                                                                122,316,511                      277,180,983

     Other comprehensive income                                                             7,059,689                        5,080,234

     Special reserves                                                                       9,706,398                        6,068,600

     Surplus reserve                                                                      924,305,375                      924,305,375

     Undistributed profit                                                                4,889,370,806                   4,486,264,723

Total owner's equity attributable to the parent company                                  9,546,827,355                   9,103,154,571

     Minority shareholders' equity                                                        364,032,187                      346,277,891

Total owner's equity                                                                     9,910,859,542                   9,449,432,462

Total Liabilities and Owner's Equity                                                   18,422,844,539                   19,114,234,184


Legal representative: Chen Lin          Principal in charge of accounting: Wang Jian   Head of accounting department: Wang Wenxin


2. Balance Sheet of the Parent Company

                                                                                                                             Unit: RMB

                                 Item                                       September 30, 2019                December 31, 2018


                                                                      14
     CSG HOLDING CO., LTD.                                               The Third Quarter Report 2019


Current asset:

     Monetary capital                                    1,171,946,331                 1,700,726,151

     Prepayments                                              278,156                        438,167

     Other receivables                                   3,552,175,851                 2,912,516,245

     Other current assets                                 300,116,326                    300,000,000

Total current assets                                     5,024,516,664                 4,913,680,563

Non-current assets:

     Long-term receivables                               1,200,000,000                 1,200,000,000

     Long-term equity investment                         5,043,863,570                 4,964,696,831

     Fixed assets                                          20,833,632                     20,926,071

     Intangible assets                                        574,403                        879,146

     Other non-current assets                               1,358,333                        732,038

Total non-current assets                                 6,266,629,938                 6,187,234,086

Total assets                                            11,291,146,602                11,100,914,649

Current liabilities:

     Short-term loan                                     2,159,500,000                 2,000,000,000

Notes payable                                             170,000,000

     Accounts payable                                         236,346                        261,024

     Payroll payable                                       34,230,524                     41,096,020

     Taxes payable                                          2,298,360                      1,099,231

     Other payables                                      1,316,949,901                 1,668,587,218

Including: interest payable                                27,375,326                     41,572,125

Dividend payable                                            3,043,798                      2,846,362

     Non-current liabilities due within one year         1,200,000,000

Total current liabilities                                4,883,215,131                 3,711,043,493

Non-current liabilities:

  Long term borrowing                                     877,500,000                  2,000,000,000

     Deferred income                                      182,990,809                    184,642,520

Total non-current liabilities                            1,060,490,809                 2,184,642,520

Total Liabilities                                        5,943,705,940                 5,895,686,013

Owners' equity:

     Share capital                                       3,108,196,163                 2,863,277,201

     Capital reserve                                      875,332,749                  1,240,166,735

     Less: Treasury shares                                122,316,511                    277,180,983


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      CSG HOLDING CO., LTD.                                                                         The Third Quarter Report 2019


     Surplus reserve                                                                 938,850,735                    938,850,735

     Undistributed profit                                                            547,377,526                    440,114,948

Total owner's equity                                                               5,347,440,662                  5,205,228,636

Total Liabilities and Owner's Equity                                              11,291,146,602                 11,100,914,649


3. Consolidated Income Statement

                                                                                                                      Unit: RMB

                                 Item                                Balance of this period           Balance of last period

I. Total operating income                                                          2,773,417,909                  2,680,693,459

Including: operating income                                                        2,773,417,909                  2,680,693,459

II. Total operating costs                                                          2,464,522,217                  2,561,744,922

 Including: Operating costs                                                        2,029,994,395                  2,092,944,976

 Taxes and surcharges                                                                  29,661,141                    35,812,891

          sales expense                                                                93,556,963                    90,526,141

         Management costs                                                            149,384,270                    168,654,876

R&D expenses                                                                           89,453,795                    86,247,328

         Financial expenses                                                            72,471,653                    87,558,710

Including: interest expense                                                            77,460,347                   109,819,290

Interest income                                                                         7,162,227                    23,542,159

Plus: other income                                                                     35,689,521                    32,285,163

Credit impairment loss (“-“ for loss)                                                   223,834                     -1,891,859

Asset impairment loss       (“-“ for loss)                                        -135,326,316

Asset disposal income (“-“ for loss)                                                   -252,568                       112,525

III. Operating profit (“-“ for loss)                                               209,230,163                    149,454,366

Plus: non-operating income                                                              2,790,510                     5,625,593

     Less: non-operating expenses                                                       1,162,203                       614,072

IV. Gross profit (“-“ for loss)                                                    210,858,470                    154,465,887

Less: Income tax expenses                                                              35,530,123                    27,650,222

V. Net profit (“-“ for net loss)                                                   175,328,347                    126,815,665

(I) Classification by business continuity

1. Net profit from continuing operations (“-“ for net loss)                        175,328,347                    126,815,665

  2. Termination of operating net profit (“-“ for net loss)

(II) )Classification by ownership

      1. Net profit attributable to the owners of parent                             166,970,717                    116,279,185

                                                                16
        CSG HOLDING CO., LTD.                                                                                The Third Quarter Report 2019


company

        2. Minor shareholders’ equity                                                        8,357,630                       10,536,480

VI. Net amount of other gains after tax                                                       1,699,294                        2,463,096

  Net amount of other gains after tax attributable to owners
                                                                                              1,699,294                        2,463,096
of parent company

        (II)Other comprehensive income that will be reclassified
                                                                                              1,699,294                        2,463,096
into profit or loss

        8. Foreign currency financial statement translation
                                                                                              1,699,294                        2,463,096
difference

VII. Total of misc. incomes                                                                177,027,641                       129,278,761

        Total of misc. incomes attributable to the owners of the
                                                                                           168,670,011                       118,742,281
parent company

        Total misc gains attributable to the minor shareholders                               8,357,630                       10,536,480

VIII.     Earnings per share:

        (I) Basic earnings per share                                                                  0.06                              0.04

        (II) Diluted earnings per share                                                               0.05                              0.04


Legal representative: Chen Lin          Principal in charge of accounting: Wang Jian   Head of accounting department: Wang Wenxin


4. Income Statement of the Parent Company

                                                                                                                               Unit: RMB

                                Item                                       Balance of this period              Balance of last period

I. Operating income                                                                          19,599,133                       14,147,677

 Less: Operating costs                                                                                  0                                 0

 Taxes and surcharges                                                                               33,330                       144,784

           sales expense

           Management costs                                                                  38,951,830                       39,974,380

R&D expenses                                                                                    410,606                          944,937

           Financial expenses                                                                32,656,871                       23,855,339

Including: interest expense                                                                  39,315,340                       45,996,709

Interest income                                                                               6,337,011                       21,853,898

Plus: other income                                                                            2,146,610                          470,940

Credit impairment loss (“-“ for loss)                                                         -44,670                           -54,340

Asset disposal income (“-“ for loss)                                                          502,000

II. Operating profit (“-“ for loss)                                                       -49,849,564                      -50,355,163


                                                                      17
        CSG HOLDING CO., LTD.                                                                               The Third Quarter Report 2019


Plus: non-operating income                                                                                                        10,556

        Less: non-operating expenses                                                            1,030,000                       242,988

III. Gross profit (“-“ for loss)                                                            -50,879,564                   -50,587,595

Less: Income tax expenses                                                                                                       599,358

IV.Net profit (“-“ for net loss)                                                            -50,879,564                   -51,186,953

        (I) Net profit from continuing operations (“-“ for net
                                                                                              -50,879,564                   -51,186,953
loss)

        (II) Termination of operating net profit (“-“ for net loss)

VI. Total of misc. incomes                                                                    -50,879,564                   -51,186,953

VII.     Earnings per share:


5. Consolidated income statement for Jan.-Sept. 2019

                                                                                                                              Unit: RMB

                                  Item                                       Balance of this period           Balance of last period

I. Total revenue                                                                           7,661,655,487                  8,151,251,436

Including: Business income                                                                 7,661,655,487                  8,151,251,436

II. Total business cost                                                                    6,991,295,788                  7,631,820,904

Including:      Business cost                                                              5,701,371,220                  6,192,441,730

Tax and surcharges                                                                             86,349,138                   107,743,437

Sales expense                                                                                266,060,362                    262,743,395

Administrative expense                                                                       442,246,625                    523,550,697

                R&D expenses                                                                 263,729,931                    271,905,509

                Financial expenses                                                           231,538,512                    273,436,136

                  Including: Interest expense                                                248,491,952                    313,350,797

                           Interest income                                                     22,085,602                    46,575,577

        Plus: other income                                                                   143,444,934                     54,760,584

Credit impairment loss (“-“ for loss)                                                        -3,541,836                     -5,545,468

Asset impairment loss        (“-“ for loss)                                               -135,326,316

Asset disposal income (“-“ for loss)                                                            118,401                      -455,305

III. Operating profit (“-“ for loss)                                                       675,054,882                    568,190,343

        Plus: non-operating income                                                              6,456,825                     8,221,388

        Less: non-operating expenses                                                            7,455,430                     1,492,623

IV. Gross profit (“-“ for loss)                                                            674,056,277                    574,919,108

        Less: Income tax expenses                                                             111,988,863                    89,021,326


                                                                        18
        CSG HOLDING CO., LTD.                                                                              The Third Quarter Report 2019


V. Net profit (“-“ for net loss)                                                         562,067,414                     485,897,782

(I) Classification by business continuity

  1. Net profit from continuing operations (“-“ for net loss)                            562,067,414                     485,897,782

  2. Termination of operating net profit (“-“ for net loss)

(II) Classification by ownership

  1. Net profit attributable to the owners of parent company                               544,313,118                     469,116,338

  2. Minor shareholders’ equity                                                             17,754,296                     16,781,444

VI. Net amount of other gains after tax                                                       1,979,455                      3,155,114

  Net amount of other gains after tax attributable to owners
                                                                                              1,979,455                      3,155,114
of parent company

  (II)Other comprehensive income that will be reclassified
                                                                                              1,979,455                      3,155,114
into profit or loss

    8. Foreign currency financial statement translation
                                                                                              1,979,455                      3,155,114
difference

VII. Total of comprehensive income                                                         564,046,869                     489,052,896

Total of misc. incomes attributable to the owners of the parent
                                                                                           546,292,573                     472,271,452
company

Total misc gains attributable to the minor shareholders                                      17,754,296                     16,781,444

VIII.     Earnings per share:

(I) Basic earnings per share                                                                        0.18                              0.16

(II) Diluted earnings per share                                                                     0.17                              0.15


Legal representative: Chen Lin          Principal in charge of accounting: Wang Jian   Head of accounting department: Wang Wenxin


6. Income statement of the Parent Company for Jan.-Sept. 2019

                                                                                                                             Unit: RMB

                                 Item                                      Balance of this period            Balance of last period

I. Total revenue                                                                             57,755,818                     44,248,959

    Less: Operating costs                                                                             0                                 0

Tax and surcharges                                                                              518,198                        391,249

Sales expense

Administrative expense                                                                     102,583,448                     135,342,752

R&D expenses                                                                                    766,444                      2,839,736

Financial expenses                                                                           97,201,706                     53,787,897

        Including: Interest expense                                                        113,702,087                      94,678,140


                                                                      19
        CSG HOLDING CO., LTD.                                                                                  The Third Quarter Report 2019


                  Interest income                                                              19,075,093                       43,313,805

        Plus: other income                                                                      3,612,857                        2,070,606

          Investment income(“-“ for loss)                                                  390,105,325                       231,537,606

Credit impairment loss (“-“ for loss)                                                               49,644                         -8,222

Asset disposal income (“-“ for loss)                                                            502,000                             2,440

II. Operating profit (“-“ for loss)                                                        250,955,848                        85,489,755

        Plus: non-operating income                                                              2,403,225                          134,006

        Less: non-operating expenses                                                            4,889,460                          243,265

III.    Gross profit (“-“ for loss)                                                        248,469,613                        85,380,496

        Less: Income tax expenses                                                                                                  599,358

VI. Net profit (“-“ for net loss)                                                          248,469,613                        84,781,138

        (I) Net profit from continuing operations (“-“ for net
                                                                                             248,469,613                        84,781,138
loss)

        (II) Termination of operating net profit (“-“ for net loss)

VI. Total of comprehensive income                                                            248,469,613                        84,781,138

VII. Earnings per share:


7. Consolidated Cash Flow Statement for Jan.-Sept. 2019

                                                                                                                                 Unit: RMB

                                  Item                                       Balance of this period              Balance of last period

I. Net cash flow from business operation

Cash received from sales of products and providing of
                                                                                            8,428,098,411                    8,874,070,807
services

Tax returned                                                                                   18,305,669                       81,506,819

Other cash received from business operation                                                  102,269,234                       114,952,740

Sub-total of cash inflow from business activities                                          8,548,673,314                     9,070,530,366

Cash paid for purchasing of merchandise and services                                       5,090,478,028                     5,549,504,979

Cash paid to staffs or paid for staffs                                                       999,968,278                     1,020,862,956

Taxes paid                                                                                   477,640,490                       605,975,057

Other cash paid for business activities                                                      472,196,718                       483,361,352

Sub-total of cash outflow from business activities                                         7,040,283,514                     7,659,704,344

Net cash flow generated by business operation                                              1,508,389,800                     1,410,826,022

II. Cash flow generated by investing

Net cash retrieved from disposal of fixed assets, intangible
                                                                                                  514,875                        3,689,092
assets, and other long-term assets

                                                                        20
       CSG HOLDING CO., LTD.                                                                         The Third Quarter Report 2019


Other investment-related cash received                                                  36,440,563                    24,683,677

Sub-total of cash inflow due to investment activities                                   36,955,438                    28,372,769

Cash paid for construction of fixed assets, intangible assets
                                                                                      459,047,736                    462,402,032
and other long-term assets

Other cash paid for investment activities                                               53,341,928                    93,641,334

Sub-total of cash outflow due to investment activities                                512,389,664                    556,043,366

Net cash flow generated by investment                                                -475,434,226                   -527,670,597

III. Cash flow generated by financing

Cash received as investment                                                                                            9,826,580

Cash received as loans                                                              2,525,743,740                  3,871,266,495

Other financing-related cash received                                                 500,000,000                     46,330,808

Subtotal of cash inflow from financing activities                                   3,025,743,740                  3,927,423,883

Cash to repay debts                                                                 2,600,659,040                  3,255,750,000

Cash paid as dividend, profit, or interests                                           425,509,363                    438,702,824

Other cash paid for financing activities                                            1,546,884,782                    568,114,332

Subtotal of cash outflow due to financing activities                                4,573,053,185                  4,262,567,156

Net cash flow generated by financing                                                -1,547,309,445                  -335,143,273

IV. Influence of exchange rate alternation on cash and cash
                                                                                         1,571,638                     2,487,631
equivalents

V. Net increase of cash and cash equivalents                                         -512,782,233                    550,499,783

Plus: Balance of cash and cash equivalents at the beginning of
                                                                                    2,225,126,913                  2,459,753,165
term

VI. Balance of cash and cash equivalents at the end of term                         1,712,344,680                  3,010,252,948


8. Cash Flow Statement of the Parent Company for Jan.-Sept. 2019

                                                                                                                       Unit: RMB

                              Item                                    Balance of this period           Balance of last period

I. Net cash flow from business operation

Other cash received from business operation                                             35,177,783                    45,225,208

Sub-total of cash inflow from business activities                                       35,177,783                    45,225,208

Cash paid to staffs or paid for staffs                                                  88,784,201                    80,647,604

Taxes paid                                                                               3,219,099                     2,520,750

Other cash paid for business activities                                                 28,928,195                    25,910,236

Sub-total of cash outflow from business activities                                    120,931,495                    109,078,590

Net cash flow generated by business operation                                          -85,753,712                   -63,853,382

                                                                 21
       CSG HOLDING CO., LTD.                                                          The Third Quarter Report 2019


II. Cash flow generated by investing

Net cash retrieved from disposal of fixed assets, intangible
                                                                             2,000                          2,440
assets, and other long-term assets

Sub-total of cash inflow due to investment activities                        2,000                          2,440

Cash paid for construction of fixed assets, intangible assets
                                                                         4,877,721                      5,604,540
and other long-term assets

Cash paid as investment                                                 66,000,000                     46,750,000

Sub-total of cash outflow due to investment activities                  70,877,721                     52,354,540

Net cash flow generated by investment                                   -70,875,721                   -52,352,100

III. Cash flow generated by financing

Cash received as investment                                                                             9,826,580

Cash received as loans                                                2,024,500,000                 2,917,500,000

Other financing-related cash received                                                                 124,357,949

Subtotal of cash inflow from financing activities                     2,024,500,000                 3,051,684,529

Cash to repay debts                                                   1,787,500,000                 2,150,000,000

Cash paid as dividend, profit, or interests                            207,984,342                    199,721,074

Other cash paid for financing activities                               550,998,441

Subtotal of cash outflow due to financing activities                  2,546,482,783                 2,349,721,074

Net cash flow generated by financing                                  -521,982,783                    701,963,455

IV. Influence of exchange rate alternation on cash and cash
                                                                            35,235                     -1,245,875
equivalents

V. Net increase of cash and cash equivalents                          -678,576,981                    584,512,098

Plus: Balance of cash and cash equivalents at the beginning of
                                                                      1,699,514,334                 1,680,672,390
term

VI. Balance of cash and cash equivalents at the end of term           1,020,937,353                 2,265,184,488


II. Note to the Adjustment of the Financial Statements

1. Adjustment of the relevant items of the financial statements at the current year beginning according to
the new standards for financial instruments, the new standards for revenues and the new standards for
lease implemented commencing from year 2019

□ Applicable   √Not applicable


2. Note to the retroactive adjustment of the previous comparative data according to the new standards for
financial instruments and the new standards for lease implemented commencing from year 2019

□ Applicable   √Not applicable

                                                                 22
        CSG HOLDING CO., LTD.                                        The Third Quarter Report 2019


III .Auditor’s Report

Whether the third quarter report has been audited or not
□Yes      √No
The third quarter report of the Company has not been audited.




Board of Directors of
CSG Holding Co., Ltd.
28 October 2019




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