CSG HOLDING CO., LTD.
ANNUAL REPORT 2023
Chairman of the Board:
CHEN LIN
April 2024
CSG Annual Report 2023
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 individual and joint legal responsibilities for the facticity, accuracy and completeness of
the whole contents.
Ms. Chen Lin, Chairman of the Board, Ms. Wang Wenxin responsible person in charge of accounting
and Ms. Wang Wenxin, principal of the financial department (accounting officer) confirm that the
Financial Report enclosed in this Annual Report 2023 is true, accurate and complete.
All directors were present at the meeting of the Board for deliberating the annual report of the
Company in person.
The future plans, development strategies and other forward-looking statements mentioned in this
report do not constitute a material commitment of the Company to investors. Investors and relevant
parties should pay attention to investment risks, and understand the differences between plans,
forecasts and commitments.
The Company has described the risk factors and countermeasures of the Company's future
development in detail in this report. Please refer to Section III. Management Discussion and Analysis.
The Company is required to comply with the disclosure requirements of "Non metallic Building
Materials Related Business" in the "Self regulatory Guidelines for Listed Companies on the Shenzhen
Stock Exchange No. 3- Industry Information Disclosure (Revised in 2023)".
The deliberated and approved plan of profit distribution in the Board Meeting is distributing cash
dividend of RMB 2.5 yuan (tax included) for every 10 shares to all shareholders based on
3,070,692,107 shares of the total current share capital,0 bonus shares (including tax) will be given,
and no capital stock will be converted from provident fund. The actual amount of the cash dividend
distributed will be determined according to the total share capital on the registration date of the
Company's implementation of the profit distribution plan.
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 Annual Report 2023
Content
Section I. Important Notice, Content and Paraphrase .......................................................................... 1
Section II. Company Profile& Financial Highlights ............................................................................ 5
Section III. Management Discussion and Analysis .............................................................................. 9
Section IV. Corporate Governance .................................................................................................. 40
Section V. Environment and Social Responsibility............................................................................ 58
Section VI. Important Events ............................................................................................................. 63
Section VII. Changes in Shares and Particulars about Shareholders ................................................. 86
Section VIII. Preferred shares ............................................................................................................ 93
Section IX. Bonds .............................................................................................................................. 93
Section X. Financial Report ............................................................................................................... 94
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CSG Annual Report 2023
Documents Available for Reference
I. 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;
II. Original of the Auditors’ Report carrying the seal of accounting firm and the signatures and seals of the certified public
accountants;
III. All texts of the Company’s documents and original public notices disclosed in the website and papers appointed by
CSRC in the report period.
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CSG Annual Report 2023
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.
The electronic glass with thickness between
Ultra-thin electronic glass Refers to
0.1~1.1mm
AG glass Refers to Anti-glare glass
AF glass Refers to Anti-fingerprint glass
AR glass Refers to Anti-reflection glass
CSG’s brand for multi-silver high-performance
Ice Kirin Refers to
energy-saving glass
BIPV Refers to Building Integrated Photovoltaic
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CSG Annual Report 2023
Section II. Company Profile& Financial Highlights
I. Company information
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
中国南玻集团股份有限公司
Company
Abbr. of legal Chinese name of the
南玻集团
Company
Legal English name of the
CSG Holding Co., Ltd.
Company
Abbr. of legal English name of the
CSG
Company
Legal Representative Chen Lin
Registered Add. CSG Building, No.1, the 6th Industrial Road, Shekou, Shenzhen, P. R.C.
Post Code 518067
Office Add. CSG Building, No.1, the 6th Industrial Road, Shekou, Shenzhen, P. R.C.
Post Code 518067
Internet website www.csgholding.com
E-mail securities@csgholding.com
II. Person/Way to contact
Secretary of the Board Representative of security affairs
Name Chen Chunyan Xu Lei
CSG Building, No.1 of the 6th Industrial CSG Building, No.1 of the 6th Industrial
Contacts add.
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. Information disclosure and preparation place
The website of the stock exchange where the
www.szse.cn
company discloses the annual report
The name and website of the media where the Securities Times, China Securities Journal, Shanghai Securities News,
company discloses the annual report Securities Daily and Juchao Website (www.cninfo.com.cn)
The place for preparation of the annual report Office of the Board of Directors of the Company
IV. Registration changes of the Company
Unified social credit code: 914403006188385775
Changes of main business since listing (if No changes
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CSG Annual Report 2023
applicable)
Previous changes for controlling shareholders
No changes
(if applicable)
V. Other relevant information
CPA firm engaged by the Company
Name of CPA firm Grant Thornton Zhitong Certified Public Accountants LLP
Offices add. for CPA firm 5th Floor, Saite Plaza, 22 Jianguomenwai Street, Chaoyang District, Beijing
Signing Accountants Su Yang, Yang Hua
Sponsor institute engaged by the Company for performing continuous supervision duties in the report period
□ Applicable √ Not applicable
Financial consultant engaged by the Company for performing continuous supervision duties in the report period
□ Applicable √ Not applicable
VI. Main accounting data and financial indexes
Whether it has retroactive adjustment or restatement on previous accounting data
□Yes √No
Changes over
2023 2022 the previous 2021
year
Operating income (RMB) 18,194,864,366 15,198,706,998 19.71% 13,672,372,823
Net profit attributable to shareholders of
1,655,614,446 2,037,202,500 -18.73% 1,526,392,754
the listed company (RMB)
Net profit attributable to shareholders of
the listed company after deducting non- 1,535,858,783 1,819,429,258 -15.59% 1,436,603,707
recurring gains and losses (RMB)
Net cash flow arising from operating
2,759,788,894 1,957,123,231 41.01% 3,899,648,030
activities (RMB)
Basic earnings per share (RMB/Share) 0.54 0.66 -18.18% 0.50
Diluted earnings per share (RMB/Share) 0.54 0.66 -18.18% 0.50
Weighted average ROE 12.30% 16.78% -4.48% 14.11%
Changes over
As at 31 Dec.
As at 31 Dec. 2022 the end of the As at 31 Dec. 2021
2023
previous year
Total assets (RMB) 30,362,057,312 25,904,013,306 17.21% 19,935,902,125
Net assets attributable to shareholders of
14,050,840,217 12,854,883,706 9.30% 11,426,724,496
the listed company (RMB)
The lower of the Company’s net profit before and after the deduction of non-recurring gains and losses in the last three
fiscal years is negative, and the auditor's report of the previous year shows that the Company’s going concern ability is
uncertain
□ Yes √ No
The lower of the net profit before and after the deduction of the non-recurring gains and losses is negative
□ Yes √ No
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CSG Annual Report 2023
VII. Accounting Data Differences under and Foreign Accounting Standards
1. Net Income and Equity Differences under CAS and IFRS
□ Applicable √ Not applicable
No such differences for the Report Period.
2. Net Income and Equity Differences under CAS and Foreign Accounting Standards
□ Applicable √ Not applicable
No such differences for the Report Period.
VIII. Main financial indexes by quarter
Unit: RMB
Q1 Q2 Q3 Q4
Operating income 4,070,673,784 4,318,666,461 5,090,592,927 4,714,931,194
Net profit attributable to shareholders
396,406,087 493,072,693 577,193,230 188,942,436
of the listed company
Net profit attributable to shareholders
of the listed company after deducting 369,241,752 468,997,016 538,045,199 159,574,816
non-recurring gains and losses
Net cash flow arising from operating
-284,407,179 802,834,364 1,105,819,087 1,135,542,622
activities
Whether there are significant differences between the above-mentioned financial index or its total number and the relevant
financial index disclosed in the Company’s quarterly report and semi-annual report or not
□Yes √ No
IX. Items and amounts of non-recurring gains and losses
√Applicable □ Not applicable
Unit: RMB
Item 2023 2022 2021 Note
Gains/losses from the disposal of non-current asset
(including the write-off that accrued for impairment -9,628,136 15,213,059 -1,493,248
of assets)
Government subsidies included in the profit and loss
of the current period (closely related to the normal
operation of the company, in line with national
policies and provisions, in accordance with the 118,358,356 188,756,525 104,507,242
defined standards, except government subsidies that
have a continuous impact on the profit and loss of the
company)
In addition to the effective hedging business related
to the normal operation of the company, the profit or
loss of fair value changes arising from the holding of
financial assets and financial liabilities by non- 3,106,870 31,567,854 17,132,672
financial enterprises and the loss or gain arising from
the disposal of financial assets and financial
liabilities and available for sale financial assets
Reversal of provision for impairment of receivables
8,757,040 6,389,385 1,429,653
that have been individually tested for impairment
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CSG Annual Report 2023
Profit and loss from debt restructuring 4,908,612 0 -285,025
Other non-operating income and expenditure except
18,833,212 14,743,778 -13,526,210
for the aforementioned items
Less: Impact on income tax 21,244,208 34,242,061 14,201,899
Impact on minority shareholders’ equity (post-
3,336,083 4,655,298 3,774,138
tax)
Total 119,755,663 217,773,242 89,789,047 --
Particulars about other gains and losses that meet the definition of non-recurring gains and losses:
□ Applicable √ Not applicable
It did not exist that other profit and loss items met the definition of non-recurring gains and losses.
Explanation of the non-recurring gains and losses listed in the Explanatory Announcement No.1 on Information
Disclosure for Companies Offering their Securities to the Public - Non-recurring Gains and Losses as recurring gains and
losses
□ Applicable √ Not applicable
It did not exist that non-recurring profit and loss items listed in the "Explanatory Announcement No. 1 on Information
Disclosure of Companies Offering Securities to the Public - Non-recurring Profit and Loss" were defined as recurring
profit and loss items in the report period.
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CSG Annual Report 2023
Section III. Management Discussion and Analysis
I. Particulars about the industry the Company engages in during the report period
Photovoltaic glass industry
In 2023, with the continuous expansion of the global photovoltaic market, the scale of the photovoltaic industry and the
growth rate of installed capacity were increasing. Driven by the growth in the installed capacity of photovoltaic modules
and the increasing penetration rate of double-glass modules, the demand for photovoltaic glass has been growing,
prompting enterprises to ramp up production. With the release of new capacity, the photovoltaic glass market has
experienced an increase in quantity but a decrease in price. This, coupled with the rising prices of various raw materials,
fuels and labour costs, resulted in robust demand, rising costs and low selling prices in the industry.
Architectural glass industry
The architectural glass business is to further process the original float glass sheet to manufacture energy-saving building
glass products with both safety and aesthetic effects in order to improve the energy-saving and safety performance of
buildings, as well as the visual aesthetic effects. Building energy-saving glass has made a significant contribution to
energy saving in the process of building use. The penetration rate in developed countries in Europe and the United States
has already exceeded 80%, but the overall penetration rate in China is still low. The total number of buildings in China is
huge. In order to cope with the pressure of global warming, to achieve the goals of “Carbon Peaking in 2030 and Carbon
Neutrality in 2060”, and to reduce building energy consumption and carbon emissions, it is imperative to reduce the
energy consumption and carbon emissions of buildings, to vigorously develop green buildings, and to carry out energy-
saving renovation of existing buildings. According to the Action Plan for the Establishment of Green Buildings issued by
the Ministry of Housing and Urban-Rural Development and the Ministry of Industry and Information Technology, as well
as the national Action Plan for Carbon Peaking Before 2030, Comprehensive Work Plan for Energy Conservation and
Emission Reduction during the 14th Five-Year Plan, and other guidance documents’ requirements, 100% of the newly-
built urban building should meet the green building standards in 2025 (about 50% in 2020). It is expected that the
architectural glass business will gain significant development opportunities during the “14th Five-Year Plan” period. In
addition, with the gradual improvement of domestic social consumption level in recent years, building energy
conservation, safety standards, and quality requirements have been continuously improved. In practice, the bad practice
of winning the bid by the lowest price for construction projects has been initially reversed, and the quality and influence
of “Made in China” have been increasingly recognized around the world, which will bring broader development space to
advantageous enterprises that attach importance to product quality and technological innovation, as well as stable
industrial chain and supply chain.
Float glass industry
In 2023, the float glass industry experienced a rebound in demand from downstream markets, buoyed by policies such as
"guarantee of timely delivery of housing projects", which led to an improved supply-demand structure and capacity
expansion in the industry. According to statistics from third-party industry information agencies, by the end of 2023, there
had been a total of 255 float glass production lines operating nationwide, with a combined daily melting capacity of
approximately 173,000 tons, marking a 6.84% year-on-year increase.
Float glass traditionally finds its main application in building materials, and its demand trends positively correlate with
infrastructure investments and the overall prosperity of the real estate sector. Statistics released by the National Bureau
of Statistics indicate a 20.4% year-on-year decrease in new housing construction area and a 17.0% increase in completion
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CSG Annual Report 2023
area in 2023. Driven by the "guarantee of timely delivery of housing projects" policy, the pace of real estate completions
has accelerated, stimulating the release of pent-up demand in existing markets, thereby boosting the total demand for float
glass in the current period. However, various indicators such as the new construction area and sales area have shown signs
of softening, reflecting shifts in the real estate market's supply-demand relationship and increasing uncertainties in
forward market demand. Consequently, the float glass market is expected to undergo cyclical adjustments. Based on an
analysis of the market demand structure, the ongoing implementation of the national "dual carbon" policy in recent years
has led to a steady rise in the proportion of green buildings, resulting in a significant increase in the proportion of energy-
saving glass. Simultaneously, as economic growth continues and living standards improve, there is a sustained uptick in
demand for high-quality products such as ultra-white float glass. These adjustments to the product demand structure,
coupled with the rising demand for high-quality products, bode well for industry-leading companies operating in the high-
end market.
Electronic glass and display industry
Electronic glass, with its unique performance advantages such as high transmittance, high strength in ultra-thin state,
reliable and stable weather resistance, and processing convenience, is an indispensable material for cover glass and touch
control plate of intelligent display interactive application terminals such as smartphones, tablets, and computers. And it
is developing rapidly with the intelligent interactive display industry. With the popularization of information and
communication technologies such as 5G and the development of the mobile Internet, the production and lifestyle of human
society are gradually developing into a new form of high integration of people, machines, things, and information, in
which everything is interconnected, driving the demand for intelligent equipment to increase rapidly and significantly. In
recent years, in addition to the rapid popularization of mobile Internet terminals such as smartphones, tablets, and
computers, the vigorous development of smart homes, new energy vehicles, smart factories, smart business displays,
advanced education, medical care, conferences, self-service, and other industries has brought about the incremental
demand for human-computer interaction equipment, which provides a broader market prospect and market space for the
electronic glass industry, and also provides a market opportunity for leapfrogging development to upstream material
manufacturers with leading technological innovation capability and benign operation.
Against a backdrop of global economic deceleration, the consumer electronics market has faced widespread sluggishness
in recent years. According to the latest research report released by an industry research institution in February 2024, the
global shipment volume of smartphones in 2023 totalled 1.14 billion units, marking a 5.8% year-on-year decline.
Projections indicate that the shipment volume will remain stable in 2024, and the global smartphone market still faces
certain challenges.
Solar energy industry
The photovoltaic new energy industry is a strategic emerging industry in China, acting as an essential guarantee for the
country to realize energy safety and green development. After over twenty years of development, the industrial position
has developed from clean energy to “the most economical” energy today. Driven by the global climate environment
requirements of “carbon peaking and carbon neutrality”, photovoltaic power generation will progressively become the
mainstay of the energy structure. Solar energy, boasting remarkable advantages such as cleanliness, safety, and
inexhaustibility, presents boundless prospects for development.
In 2023, China's photovoltaic industry witnessed accelerated innovation and integration, driving further expansion in the
industry scale. According to statistics from the China Photovoltaic Industry Association, the outputs of high-purity
crystalline silicon, silicon wafers, solar cells, and modules hit record highs. The industry's total output value exceeded
RMB 1.7 trillion, marking impressive year-on-year growth rates of 66.9%, 67.5%, 64.9%, and 69.3%, respectively.
Throughout the year, major photovoltaic products experienced noticeable price declines, leading to an overall trend of
"an increase in quantity but a decrease in price" in exports.
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CSG Annual Report 2023
II. Main business of the Company during the report period
CSG is a leading domestic brand of energy-saving glass and a renowned brand of solar PV products and display devices.
Its products and technologies are well-known at home and abroad. Its main business includes R&D, manufacturing and
sales of high-quality float glass, architectural glass, photovoltaic glass, new materials and information display products
such as ultra-thin electronic glass and display devices, as well as renewable energy products such as silicon materials,
photovoltaic cells and modules, and it provides one-stop services for photovoltaic power station project development,
construction, operation and maintenance, etc. The Company owns quartz sand raw material processing and production
bases in Jiangyou, Sichuan; Qingyuan, Guangdong; Fengyang, Anhui; and Beihai, Guangxi (currently under construction),
which ensure a steady supply of raw materials for the Company's glass production.
Photovoltaic glass business
In the field of photovoltaic glass, the Company took the lead in entering the field of photovoltaic glass manufacturing in
China in 2005. Based on independent research and development, the Company has formed a full closed-loop production
capacity from photovoltaic glass original sheet production to deep processing. As at the end of 2023, the Company has
seven photovoltaic rolled glass original sheet production kilns and complementary photovoltaic glass deep processing
production lines in Dongguan, Wujiang, Fengyang and Xianning, and its products cover deep-processing products with
a variety of thicknesses of 1.6-4 mm.
In the era of carbon peaking and carbon neutrality, the Company is optimistic about the long-term development of the
photovoltaic new energy industry. Seizing the opportune moment for industrial development, the Company has leveraged
the national "14th Five-Year Plan" and its own strategic development plan to address weak spots in the capacity and scale
layout of the Group's photovoltaic glass business. By the end of 2023, five new photovoltaic glass production kilns and
complementary processing lines in Fengyang and Xianning had been put into commercial operation. Coupled with the
existing production kilns and complementary processing lines in Dongguan and Wujiang, the Company now boasts a
total of seven photovoltaic rolled glass original sheet production kilns along with complementary photovoltaic glass deep
processing production lines in operation. The construction of two new photovoltaic glass production kilns and
complementary processing lines in Beihai is progressing as planned, with one kiln already ignited at the end of March
2024 and the other slated for ignition within the same year. With nearly two decades of experience in photovoltaic glass
production, CSG has amassed a robust foundation in key equipment and technologies such as kilns, calendering, and deep
processing, which have been significantly showcased in the current round of capacity expansion of the Company's
photovoltaic glass business. As of the end of 2023, the Company had ascended to a leading position in the industry in
terms of photovoltaic glass capacity, establishing photovoltaic glass as a new pivotal business segment for the Company.
At present, the photovoltaic industry is experiencing rapid growth. According to the current policy environment and
market trends, the future of photovoltaic power generation holds vast development opportunities. The centralised release
of newly expanded photovoltaic glass capacity may lead to a temporary supply-demand mismatch, resulting in market
price fluctuations. Nevertheless, the industry is expected to regain its footing on a path towards healthy growth, driven
by the rapid expansion of the global market, the optimisation of domestic industrial structures, and the influence of the
risk early warning mechanism. The Company will make every effort to ensure that its construction projects will be put
into operation as scheduled, bolster its production capacity in large-size ultra-thin photovoltaic glass, and enhance its
competitive edge in the industry. Additionally, long-term strategic partnerships with leading industry players will be
enhanced to further boost the Company's competitiveness in the photovoltaic glass market.
Architectural glass business
As one of the largest high-end building energy-saving glass suppliers in China, CSG integrates R&D and design, technical
consulting, production and manufacturing, and marketing and service in the architectural glass business. It always aims
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CSG Annual Report 2023
to “build green energy-saving products and create quality life” and forms a CSG brand image with quality, service and
continuous R&D as its core competitiveness, which is strongly competitive in foreign markets as well.
Currently, the Company has seven deep processing bases of energy-saving glass in Tianjin, Dongguan, Xianning,
Wujiang, Chengdu, Zhaoqing, and Xi’an. With the completion of the two bases in South China and the one in Northwest
China, the Company’s base layout across China has been further optimised. Meanwhile, with the clear direction of
intelligent and digital transformation, the product diversification and capacity scale of coated insulating glass and coated
glass will see continuous and steady growth, which will serve as an adequate guarantee for the comprehensive and steady
improvement of product competitiveness, market share and service.
CSG’s architectural glass business adheres to the customized business strategy of trinity of technical service, marketing,
R&D and manufacturing, relying on its own manufacturing and R&D strength, as well as the marketing and service
network formed by domestic and overseas offices, to meet the personalized needs of domestic and foreign customers and
construction projects. In 2017, CSG’s low-E coated glass was awarded the title of Single Champion Product by the
Ministry of Industry and Information Technology, and it passed the review again in March 2024, which fully proves the
leading position of CSG’s architectural glass in the industry. The Company has the world’s leading glass deep processing
equipment and testing equipment, and its products cover all kinds of architectural and construction glass. The R&D and
application level of the Company’s coating technology keeps pace with the world, and its high-end product technology is
internationally leading. Following the double silver coated glass products, the Company has successively developed “Ice
Kirin” high-performance energy-saving glass and multi-function energy-saving glass products featuring further improved
sunshade and heat insulation performance and energy-saving contribution. All deep processing bases of the Company are
able to produce and process “Ice Kirin” high-performance energy-saving glass. Under the background of the “dual carbon”
goals and the national green and energy-saving building requirements, the market demand for “Ice Kirin” glass has further
expanded. After years of market testing and relying on the Company’s advanced coating technology, its high performance
and stability have been well received by the market, CSG’s “Ice Kirin” products have become a benchmark in the domestic
market, and high-quality, energy-saving, environmentally friendly LOW-E insulating glass continues to lead the domestic
high-end market share. The Company has always adhered to the intelligent transformation and digital transformation as
the key increment of the development of architectural glass business. It has continuously invested and accumulated rich
experience in the research of production automation, intellectualization, information technology and equipment, and the
efficiency improvement of intelligent upgrading and transformation of traditional equipment. With technological progress
and process optimization, the Company has reduced production manpower consumption, material consumption and
energy consumption, actively promoting the Company’s transformation and upgrading to achieve intensive
manufacturing and high-quality development.
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. All kinds of high-quality engineering architectural glass provided by the Company are widely
used in landmark buildings such as major city CBDs and transportation hubs at home and abroad, which are too numerous
to mention. In 2023, the Company was shortlisted for multiple landmark projects for its unwavering commitment to safety,
energy conservation, and high quality. These projects include China Merchants Bank Global Headquarters Complex,
VIVO's R&D centre, the Industry Cluster Centre of the China-Singapore Guangzhou Knowledge City, National
Convention and Exhibition Center, Xiaomi Future Industrial Park, China Huaneng Headquarters, Hong Kong Kai Tak
Hospital, One Circular Quay in Australia, Jeddah Tower in Saudi Arabia, and MERDEKA PNB 118 in Kuala Lumpur,
and many other domestic and foreign buildings in the Middle East, America, Europe, Australia, Southeast Asia, and other
places.
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CSG Annual Report 2023
Float glass business
In the field of float glass, CSG has 10 advanced float glass production lines in Dongguan, Chengdu, Langfang, Wujiang
and Xianning. Its products that cover high-quality float glass and ultra-white float glass with various thicknesses and
specifications of 1.6-25 mm are trusted by customers because of their quality. In CSG’s float glass portfolio, the
proportion of differentiated glass products with special specifications and special application scenarios such as ultra-white,
ultra-thin, and ultra-thick is large, which are widely used in high-end building curtain walls, decoration and furniture,
mirrors, car windshields, scanners and copiers, home appliance panels, display protection and other application fields
with high requirements on glass quality. CSG has established long-term and stable business cooperation with many well-
known processing enterprises. In terms of the float glass business, CSG is committed to a high-end, differentiated product
strategy, actively responding to the new national standard for flat glass implemented in August 2023, to strive for high-
quality development.
The profit level of the float glass business is generally positively correlated with the level of real estate new construction
and completion data, and is also affected by multiple factors such as current energy and raw material prices, product
structure, and enterprise management level. Differentiated glass products have higher added value due to specific
application scenarios, higher production process difficulties, stable demand, and relatively proactive pricing by
manufacturers. To adapt to changes in the market, the Company focuses on improving management efficiency, improving
the level of lean production of conventional products, firmly implementing the differentiated competition strategy,
carefully cultivating and developing differentiated product markets, and continuously increasing the proportion of high-
value-added product sales, such as ultra-white products, so as to continuously consolidate and enhance the industry
competitiveness of the Company’s float glass business.
Thanks to national policies such as the "guarantee of timely delivery of housing projects", the overall completion area in
2023 saw an increase compared to the previous year, with market demand improving in the latter half of the year. Under
the macro background of “Steady Growth” of the national economy and the realization of “dual carbon” goals at present,
customers in the downstream market are pursuing higher-quality products, and the demand for differentiated products
and energy-saving products remains stable.
Electronic glass and display business
After more than a decade of hard work, CSG’s electronic glass business has always focused on increasing investment in
R&D, breaking through high-end market barriers with independent intellectual property rights and independent
innovation, and firmly following the development route of product upgrades and iterations to accelerate import
substitution. In 2023, the Company’s electronic glass business continued to develop. Its four subsidiaries, Hebei Panel,
Yichang Photoelectric, Qingyuan New Energy-Saving Materials and Xianning Photoelectric, continued to actively
implement further market expansion and product upgrading in the application fields of intelligent electronic terminals,
touch components, vehicle window glass, vehicle-mounted display, industrial control and commercial display, and smart
home. Therefore, the market share and brand influence of the Company’s medium-alumina and high-alumina electronic
glass products were improved steadily. Rich product structure, reliable delivery guarantee and strong technical innovation
help the Company’s electronic glass business maintain its dominant position in the fierce market competition. In 2023,
the Company continued to promote product technology upgrading. At present, CSG electronic glass has fully covered
electronic glass products in high, medium and low-end application scenarios and established a more solid market
competition foundation. CSG has long been committed to becoming the industry’s leading electronic glass material
solution provider, and it will continue to develop glass-based protective materials with higher strength and
competitiveness in the field of touch display, develop human-computer interaction interface materials meeting the
requirements of material interconnection in the fields of smart home, vehicle display, advanced medical, new-energy
vehicles, etc., and develop new application materials in the fields of new-energy vehicles.
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CSG Annual Report 2023
In the touch display field, CSG has formed a complete touch industry chain from vacuum magnetron sputtering coating,
3A (AG, AR, and AF) cover plate processing and fine pattern lithography processing, to touch display modules. The main
business includes optical coating materials, vehicle-mounted cover plates and vehicle-mounted touch panels. Among
them, the optical coating material segment includes the two business types of ITO conductive glass and ITO conductive
film, and the products are positioned at middle and high-end customers at home and abroad and are concentrated in
differentiated high-value-added ones. The vehicle-mounted cover plate business segment comprises a variety of products,
including vehicle-mounted AG glass, vehicle-mounted 2A (AR and AF) cover plates, vehicle-mounted 3A cover plates,
and customised cover plates of special functions. These products are supplied indirectly to renowned domestic and
international automotive brands through downstream customers of vehicle-mounted device manufacturers.
Solar energy business
CSG is one of the enterprises that firstly enter the field of photovoltaic product manufacturing in China. After more than
ten years of construction, operation, technological transformation and upgrading, CSG has created a complete industrial
chain covering the investment and operation of high-purity crystalline silicon materials, silicon wafers, solar cells,
modules and photovoltaic power stations. The business structure of the entire industry chain enables the Company to have
a certain ability to resist risks, be sensitive to the industry, and be able to respond quickly to market changes in the industry.
After years of technological accumulation in the photovoltaic business, CSG has built three national-level scientific
research and technology platforms: the “National and Local Joint Engineering Laboratory for Semiconductor Silicon
Material Preparation Technology” recognized by the National Development and Reform Commission, “National
Enterprise Technology Centre” and “CNAS Accredited Laboratory”; and seven provincial-level scientific research and
technology platforms: “Hubei Semiconductor Silicon Preparation Technology Project Laboratory” and “Hubei Enterprise
Technology Centre” recognized by the Hubei Provincial Development and Reform Commission, “Hubei Silicon Material
Engineering Technology Research Centre” recognized by the Department of Science and Technology of Hubei Province,
“Hubei Semiconductor Silicon Material Technology International Cooperation Base”, “Hubei Silicon Material
Enterprise-School Joint Innovation Centre”, “Guangdong Solar Photovoltaic Cell and Component Engineering
Technology Research Centre” and “Guangdong Enterprise Technology Centre”.
In 2023, facing a highly certain future for the photovoltaic industry, companies and investors both within and outside the
industry increased their investments and arrangements. This led to temporary excess capacity across various processes of
the industry chain, resulting in a fluctuating price downturn in the photovoltaic industry throughout the year. Subsidiaries
under CSG diligently implemented strategic decisions and arrangements made by the Group's management. The Yichang
base steadfastly transitioned to low-energy-consuming products, leveraging the unique characteristics of high-purity
crystalline silicon fixtures and production factors to enhance its market competitiveness continuously. The Dongguan
base pursued a path of product differentiation tailored to its own circumstances, yielding positive outcomes. The
construction of the 50,000 tons/year high-purity crystalline silicon project in the Qinghai base progressed as scheduled.
After shifting into operation, it will further expand the Group's solar energy business, boosting overall competitiveness.
III. Core Competitiveness Analysis
CSG, one of the most competitive and influential large-scale enterprises in China's glass industry and new energy industry,
is committed to the development of energy conservation renewable, and new material industry. After four decades of
development and accumulation, the Company has gradually formed a comprehensive competitive advantage in terms of
products and brands, technology research and development, industrial chain and layout, talent team, and green
development.
1. Product and brand advantages
14
CSG Annual Report 2023
"CSG" is a famous brand of domestic energy-saving glass, ultra-thin electronic glass, display and solar photovoltaic
products. Its products and technology are well-known at home and abroad. The trademarks "南玻" and "SG" held by the
Company are both "Famous Trademark of China". The Company has been listed in the "Top 50 Building Materials
Enterprises in China" and "Preferred Brand of Architectural Glass" in Door and Window Curtain Wall Industry for many
years. In 2018, "CSG" brand was recognized by the United Nations Industrial Development Organization as the fourth
batch of "International Reputation Brand". CSG’s low-E coated glass and ultra-thin electronic glass were awarded the
title of Single Champion Product by the Ministry of Industry and Information Technology, and it is the only manufacturer
in the domestic glass industry that has two single champion products at the same time. The Company was awarded the
title of "Outstanding Green Manufacturing Enterprise" in the building materials industry of Guangdong Province for the
period of 2018-2022, and the title of “Shenzhen Top 500 Enterprises for 2023” (ranking No. 94).
2. Technology research and development advantages
The Company has always valued technological R&D and adopted independent R&D as its foundation since its
establishment. As of December 31, 2023, the Company has had a total of 22 national high-tech enterprises, 2 national-
level single champion products in the manufacturing industry, 1 national-level engineering laboratory, 1 national-level
enterprise technology centre, 5 national enterprises with intellectual property advantages, 1 national intellectual property
demonstration enterprise, 6 national-level specialized, sophisticated, distinctive, and innovative enterprises (“Little
Giants”), 2 provincial-level expert workstation, 1 provincial-level doctoral workstation, 13 provincial-level enterprise
technology centres, 6 provincial-level engineering technology research centres, 2 provincial-level engineering research
centres, 4 provincial-level demonstration enterprises for intellectual property construction, 1 provincial-level intellectual
property demonstration enterprise, 7 provincial-level “Little Giants”, 1 provincial-level government quality award, 10
provincial-level scientific and technological progress awards, and 4 provincial-level patent awards. As of December 31,
2023, the Company has applied for a total of 3,035 patents, including 1,275 invention patents, 1,747 utility model patents,
and 13 design patents. Moreover, the Company has had a total of 2,212 authorized patents, including 465 invention patents,
1,734 utility model patents, and 13 design patents.
3. Industrial chain and layout advantages
The Company has three complete industrial chains of energy-saving glass, electronic glass and display, and solar
photovoltaic glass. With the continuous improvement of the technological level of each process of the industrial chains,
the Company’s industrial advantage becomes obvious; meanwhile, the Company possesses a complete industry layout,
with production bases located in South China, North China, East China, Southwest China, Central China, and Northwest
China.
4. Talent team advantages
The Company’s advantage in talent teams is mainly reflected in two aspects: On the one hand, the Company has
established a strong R&D team and a powerful R&D system. Through the construction of the core technical team,
continuous R&D investment, and abundant technical reserves, it has constituted an important technology and innovation
support for the Company’s strategies. Meanwhile, it has established Industry-University-Research cooperation, actively
cooperating with domestic colleges and universities which are in advantage in silicate materials industry, to accelerate
the transformation of scientific research results, and to strengthen basic research; on the other hand, an excellent and
stable management team is one of the most fundamental guarantees for the Company’s rapid and stable development.
The Company has formed a good echelon training mechanism for professional managers. At present, the Company’s
senior management team has comparative advantages in multiple aspects, such as academic background, professional
quality, knowledge base, management philosophy and experience.
5. Green development advantages
With the continuous impetus of the “dual carbon” goals, the Company has taken active actions in various carbon-related
fields. For example, the Company has widely conducted professional training on carbon emission management to improve
15
CSG Annual Report 2023
the ability of relevant personnel to better cope with carbon-related affairs. Meanwhile, the Company has actively
promoted through-life carbon footprint certification for relevant products as a preparation for downstream market
expansion of green and low-carbon products. Furthermore, Hebei CSG Glass Co., Ltd., a subsidiary of the Company and
an outstanding and benchmark enterprise in the flat glass industry, recognized as a pilot enterprise for carbon peaking in
the construction material industry, has made efforts to explore and implement the action plans and effective routes of
carbon peaking in the industry. The relevant subsidiary of the Company has actively gotten involved in the regional pilot
market of carbon transactions to strive for a calculation method of carbon quota matching the real situation of the
Company’s production. In 2023, it was included in the emission control list, with its total emissions highly consistent
with the quotas. As a pioneer of green development in the industry, the Company has 9 subsidiaries being honoured as
national "Green Factories", winning itself abundant room for development.
IV. Main business business analysis
1. Overview
The year 2023 saw a slow recovery in the global economy due to a combination of factors. According to the data released
by the National Bureau of statistics, China’s national economy picked up in 2023. The GDP totalled RMB 126.06 trillion,
increasing by 5.2% year-on-year, the investment in fixed assets (excluding farmers) totalled RMB 50.30 trillion,
increasing by 3.0% year-on-year, the investment in real estate development totalled RMB 11.09 trillion, decreasing by
9.6% year-on-year, and the floor space of buildings completed was 998 million square meters, increasing by 17.0% year-
on-year.
Facing the complicated political and economic environments at home and abroad, as well as the increasing pressure of
market competition, CSG, under the correct leadership of the Board of Directors, adopts the goal of becoming a world-
class enterprise, and firmly takes the road of high-quality development. By continuously implementing differentiated
operation, constantly improving its capacity of lean production and intelligent manufacturing, actively promoting project
construction, optimizing its industrial layout, and consolidating resource reserves, the Company further strengthens its
core competitiveness.
In 2023, the Company’s revenue totalled RMB 18.195 billion, increasing by 20% year-on-year, and its net profit reached
RMB 1.546 billion, decreasing by 24% year-on-year; meanwhile, the Company’s net profit attributable to shareholders
of the listed company was RMB 1.656 billion, decreasing by 19% year-on-year.
I. Operation of each industry of the Group
In recent years, CSG has continuously promoted business optimisation, strengthened its competitive advantage in
traditional energy-saving construction materials, and accelerated the development of its new energy and new material
industrial sectors. The Company’s advantage in the diversified industry layout became prominent in 2023, the strong
support of its photovoltaic glass business, architectural glass business and float glass business effectively diluting the
impact of cyclical fluctuations in the solar energy business.
Glass business segment
Photovoltaic glass: The Company upholds the "quality first, service foremost" principle, leveraging its expertise in
processes and technologies to enhance the quality and overall manufacturing yield of photovoltaic glass products, thus
securing a competitive edge in the industry. The Company is firmly optimistic about the long-term development of the
photovoltaic new energy industry. It continues to expand its capacity and upgrades existing kiln technologies while
ensuring consistent quality. The first kiln for the photovoltaic glass construction project in Beihai, Guangxi, was ignited
at the end of March 2024, and the second kiln is expected to be ignited within the same year. Additionally, the upgrade
project for the photovoltaic line in Wujiang is scheduled for ignition by the end of 2024. Upon completion of these projects,
16
CSG Annual Report 2023
the annual capacity for photovoltaic glass will see a significant increase, optimising production costs and demonstrating
further economies of scale. This lays a robust foundation for expanding market share, scaling up operations, and fostering
the high-quality development of the photovoltaic glass business.
Architectural glass: As the golden brand of CSG, the Company’s architectural glass business has been equipped with
quality, service and continuous R&D capabilities that match the brand. Focusing on the continuous improvement of the
building energy-saving standards and high-rise building safety standards, the Company strengthens brand building and
adheres to the customized business strategy integrating technical service, marketing, and R&D and manufacturing, to
meet the personalized needs of domestic and foreign customers and construction projects. As the Company’s share in the
domestic high-end construction market continues to rise, it also maintains a leading position in market scale and
profitability in the field of deep processing within the same industry.
In 2023, despite affected by domestic and international environmental factors continuously, the pressure of sales and
delivery increased year-on-year, coupled with increased financing and payment pressure from domestic real estate
enterprises, as well as higher risk control requirements by the Company, the operation of architectural glass remained
stable. By refining the market layout, the Company continued to increase the signing of high-quality projects, which
resulted in the drastic year-on-year increase of the order compounding degree. Meanwhile, it launched the band of “Ice
Kirin” and gradually increased the proportion of “Ice Kirin” and other high-end products. It also enhanced cooperation in
support projects for people’s livelihood, promoted digital transformation across all the production bases, continued to
strengthen “Reduce Costs and Increase Efficiency” and lean operation.
Meanwhile, focusing on the future, the Company seizes the historic opportunity of the acceleration of green building
construction. With the completion of the layout of production capacity optimization and production expansion for all
bases of architectural glass, as well as the construction of new bases, the Company improves the automation and
informatization level of its production lines, continuously improving the production efficiency of equipment. CSG’s
production capacity for architectural glass is further released. This, in combination with the Company’s product
diversification to conform with the market demand, can lead to the continuous improvement of the market competitiveness
and service capability of CSG regarding architectural glass, so as to increase the market share of its architectural glass
business.
The national standard General Code for Building Energy Efficiency and Renewable Energy Utilization (GB55015-2021),
implemented in April 2022, mandates a 30% reduction in the average design energy consumption for newly constructed
residential buildings and a 20% reduction for public buildings. As the “14th Five-Year Plan” has proposed higher
requirements for building energy conservation, CSG actively facilitated the fulfilment of the “dual carbon” goals and
responded to the requirements of the policy on building energy conservation and building emission reduction by taking
the lead in the R&D of energy-saving products. A series of innovative and world-leading products were developed, such
as the “Ice Kirin” glass series, thermal insulation products and BIPV products. The Company also actively participated
in the formulation and revision of a series of industry or group standards to promote the advancement of the construction
industry toward the “dual carbon” goals. In the face of the promising development prospects and the current fierce market
competition, CSG implemented multiple measures, such as optimizing customer service, improving product quality,
enhancing brand promotion and expanding sales channels, for its “Ice Kirin” glass business and recorded a considerable
increase in the quantity of signed orders for the “Ice Kirin” glass in 2023. The innovation and R&D of energy-saving
products with higher energy efficiency is important to the energy conservation and emission reduction of newly
constructed buildings and vital to the energy-conservation-oriented transformation of existing buildings. In order to meet
the market demand for product innovation, CSG will continue to conduct innovation, so as to provide products with
higher energy efficiency for the market.
Float glass: In 2023, buoyed by national policies such as the "guarantee of timely delivery of housing projects", the latter
half of the year saw an uptick in demand from downstream markets, leading to increased sale volumes. Concurrently, the
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CSG Annual Report 2023
Company actively pursued cost control and implemented energy-saving measures to drive down production costs. In the
current competitive market environment, the Company remains committed to its strategy of offering high-end,
differentiated products. As the sales and the market share of its ultra-white glass have further increased, and the high-end
brand of CSG’s ultra-white “Blue Diamond” series becomes mature, the Company has become a leading enterprise in
this industrial segment; moreover, the proportion of the Company’s high-value-added differentiated products continues
to increase, and the market share of the Company in the segment of high-grade float glass stays among the top. The
Company has intensified efforts to partner with new suppliers and strategically organised raw material procurement for
commodities to mitigate the pressure of rising procurement costs. Furthermore, it has strengthened lean control over the
entire production process, continuously enhancing yield rates and reducing production costs. The cold repair and technical
transformation of the second-line in Xianning Float Company had a certain impact on the Company's float glass capacity
and profitability.
Electronic glass and display business segment
In 2023, the electronic glass market faced escalating supply-demand imbalances driven by a global downturn in consumer
electronics demand and persistent expansion of electronic glass capacity. This intensified industry competition, driving
down product prices and reducing orders. Nevertheless, CSG always recognises R&D as the core of its electronic glass
business and unremittingly adopts the development route of product upgrading with the aim of replacing imported
products with homemade products. In 2023, the Company continued to actively implement product and market upgrading
in various application fields, such as intelligent electronic terminals, touch control modules, vehicle-mounted displays,
industrial automatic control displays & commercial displays, and smart homes. Thanks to these efforts, the Company
maintained a stable market share for its medium-alumina and high-alumina electronic glass products.
The Company's optical coating business faced challenges in output and sales volume in 2023 due to technological
advancements such as the widespread adoption of in-cell touch technology. However, in its strategically important
vehicle-mounted business segment, committed to building an industrial chain of electronic components for high-end
automobiles, the Company continued to increase investment in R&D and new projects and maintained the differentiated
strategy of "product quality & technology first" for market competition.
Solar energy business segment
The macroscopic background of the global consensus for “Green Development” and the domestic timetable of the dual
carbon goals jointly promote a new high-speed development period of the photovoltaic industry after the affordable
Internet access is comprehensively achieved. On the basis of objective analysis of its own industrial advantages and
disadvantages, overall consideration of the market environment, industrial development trend and the Group’s overall
industrial development plan, the Company plans to launch the project of 50,000 tons of high-purity crystalline silicon per
year in Haixi Prefecture, Qinghai Province, construction of which is accelerating as scheduled. This project, upon
completion, is expected to help further expand the Group’s solar energy business and enhance its overall competitiveness.
The Company stays abreast of industry trends in silicon wafers, solar cells, modules and photovoltaic power stations,
continuously tapping into internal potential to enhance technological capabilities, product quality, and cost
competitiveness.
II. Other management work
In 2023, with the focus on the operation and development philosophy of “grasping market share, controlling costs,
enhancing management, building corporate culture, and seeking development”, the Company opened up a new path in
the uncertain environment, so as to vigorously promote the Group’s development strategies and ensure the steady
implementation of all operation and management tasks. In order to ensure the rapid and healthy development of all its
industrial sectors, the Company spared no effort to ensure production safety, continued to promote differentiated
18
CSG Annual Report 2023
operations and the capability of intelligent production, and tightly grasped opportunities in the market. The multiple
measures it took were listed below.
1. The Company enhanced efforts to improve management-based benefit creation as the Company’s integral system under
the dual cycle of “Internal Improvement and External Expansion” with solid foundations could effectively support its
operation. Furthermore, the Company continuously conducted cost management in multiple aspects, such as cost
reduction and efficiency increase, centralized procurement, strategic procurement and engineering construction, enhanced
the coordination and co-development of its teams, improved efficiency in service, regulation and decision-making,
promoted the Group’s informatized management and construction of digital and intelligent factories, gave play to the
leading role of information innovation in the improvement of the capabilities of management and operation, continued to
promote management based on the optimized basic standards, and promoted the construction of the five-star factories.
Moreover, the Company made efforts to improve the performance in safety management. It redoubled the efforts of
hidden danger investigation and rectification, increased safety and environmental protection training and education, and
strengthened the safety foundation for continuous safe operation. Through the implementation of a series of programs,
methods and means for internal control, the Company facilitated the achievement of the Company’s operation objectives
and the response to and remediation of risk incidents in the business processes. Guided by risk control and
efficiency/effect improvement and focusing on the Group’s strategies of the operation objectives of the current period,
the Company promoted the improvement of its management mechanisms and comprehensively improved its capabilities
of risk control and business management.
2. The ability to conduct R&D and iteration of technologies, techniques and products is always the key guarantee for the
sustainable and healthy development of an enterprise. As the core element of CSG for forming the industrial barrier of
high-value-added business lines, the ability helps the Company maintain its industry-leading position. The Company has
made its comprehensive layout from six perspectives, namely the organizational structure of its R&D system, intellectual
property rights, top-level product design, high-level R&D platforms, senior talent echelons and the demand for the
supporting talent resources. Based on the layout, the Company has formulated the Group’s R&D strategic plan to guide
the Company’s technological innovation and its sustainable development of product R&D. The Company has also
promoted the construction of the R&D system and strengthened R&D and innovation, as it has facilitated the
industrialization of its new products and the cross-industry application of its products. For example, it has applied its
high-alumina electronic glass to automobiles. In 2023, the Company submitted 230 patent applications, including 156 for
inventions, and obtained 247 new authorized patents, including 98 authorized invention patents.
3. Energy conservation and environmental protection are the lifeline to the survival and development of a glass company
and the core features of the social responsibilities of an enterprise in an industry with high energy consumption. The
Company has always been at the leading level in the industry in terms of the control of energy consumption and emissions.
CSG takes the lead in the industry to realize comprehensive utilization of energy by means of waste heat power
generation and distributed photovoltaic power generation. Through comprehensive exhaust gas treatment such as
desulfurization, denitrification and dust removal, it achieves ultra-low emission, which is far lower than the national
pollutant emission permission value. Under the condition of the same tonnage and the same kiln age, the control of
energy consumption and the control of emission per unit of production capacity have always been at the leading level in
the industry. Nine subsidiaries of CSG, including Wujiang CSG Glass Co., Ltd., Tianjin CSG Energy-Saving Glass Co.,
Ltd., Xianning CSG Energy-Saving Glass Co., Ltd., Xianning CSG Photoelectric Glass Co., Ltd., Xianning CSG Glass
Co., Ltd. Yichang CSG Photoelectric Glass Co., Ltd., Yichang CSG Polysilicon Co., Ltd., Hebei Panel Glass Co., Ltd.,
and Hebei CSG Glass Co., Ltd., were successfully included in the list of “Green Factory” announced by the Ministry of
Industry and Information Technology.
4. The Company further improved its organisational structure to safeguard the implementation of its strategic projects.
Specifically, the Company vigorously promoted organisational talent development, optimized the organisational structure
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CSG Annual Report 2023
and the corresponding staffing and improved the construction of the human resource system. Moreover, the Company
optimized and adjusted the functional organisation of the headquarters and business divisions to enhance business support,
as it specified the functions, posts, and staffing of the three-level structure of the Group’s R&D management and
continuously promoted the implementation of organisational optimization of R&D at each level. In doing so, the Company
encouraged all subsidiaries of the Group to establish their own R&D department in a gradual manner, so as to further
improve the R&D system of the Group.
5. The Company promoted brand construction and cultural development and used culture to facilitate ideological
unification, bring its teams together and safeguarding CSG’s development. The Company successfully drove the debut
of its brand "Ice Kirin" on China Central Television (CCTV), further bolstering the brand's influence. Measures have
been implemented for brand promotion management to establish a comprehensive brand promotion management system,
ensuring unified efforts in brand promotion and upholding the consistency and reputation of CSG's brand image.
2. Revenue and cost
(1) Constitution of operation revenue
Unit: RMB
2023 2022
Ratio in Ratio in Increase/dec
Amount operation Amount operation rease y-o-y
revenue revenue
Total of operating income 18,194,864,366 100% 15,198,706,998 100% 19.71%
According to industry
Glass industry 14,685,557,284 80.71% 10,056,739,256 66.18% 46.03%
Electronic glass & Display
1,572,642,236 8.64% 1,643,083,831 10.81% -4.29%
industry
Solar energy and other
2,248,321,652 12.36% 3,888,582,762 25.58% -42.18%
industries
Undistributed 400,173,854 2.20% 374,349,561 2.46% 6.90%
Inter-segment offsets -711,830,660 -3.91% -764,048,412 -5.03% -6.83%
According to product
Glass products 14,685,557,284 80.71% 10,056,739,256 66.18% 46.03%
Electronic glass & Display
1,572,642,236 8.64% 1,643,083,831 10.81% -4.29%
products
Solar energy and other products 2,248,321,652 12.36% 3,888,582,762 25.58% -42.18%
Undistributed 400,173,854 2.20% 374,349,561 2.46% 6.90%
Inter-segment offsets -711,830,660 -3.91% -764,048,412 -5.03% -6.83%
According to region
Mainland China 16,639,820,052 91.45% 14,031,154,824 92.32% 18.59%
Overseas 1,555,044,314 8.55% 1,167,552,174 7.68% 33.19%
According to sales model
Direct sales 18,194,864,366 100% 15,198,706,998 100% 19.71%
(2) List of the industries, products, regions or sales model exceed 10% of the operating income or operating
profits of the Company
√Applicable □ Not applicable
Unit: RMB
20
CSG Annual Report 2023
Increase/d Increase/d
Increase/d
ecrease of ecrease of
Operating Gross ecrease of
Operating cost operating gross
revenue profit ratio operating
revenue y- profit ratio
cost y-o-y
o-y y-o-y
According to industry
Glass industry 14,685,557,284 11,472,952,253 21.88% 46.03% 49.99% -2.06%
Electronic glass & Display
1,572,642,236 1,313,691,653 16.47% -4.29% 5.47% -7.72%
industry
Solar energy and other industries 2,248,321,652 1,668,976,777 25.77% -42.18% -33.35% -9.84%
According to product
Glass products 14,685,557,284 11,472,952,253 21.88% 46.03% 49.99% -2.06%
Electronic glass & Display
1,572,642,236 1,313,691,653 16.47% -4.29% 5.47% -7.72%
products
Solar energy and other products 2,248,321,652 1,668,976,777 25.77% -42.18% -33.35% -9.84%
According to region
Mainland China 16,639,820,052 12,884,833,088 22.57% 18.59% 27.83% -5.59%
According to sales model
Direct sales 18,194,864,366 14,141,072,171 22.28% 19.71% 28.48% -5.30%
Under the circumstances that the statistical standards for the Company’s main business data adjusted in the report period,
the Company's main business data in the recent year is calculated based on adjusted statistical standards at the end of the
report period
□ Applicable √ Not applicable
(3) Whether the Company’s goods selling revenue higher than the service revenue
√Yes □ No
Industry Item Unit 2023 2022 Increase/decrease y-o-y (%)
Sales volume 10,000-ton 205 55 272.73%
Photovoltaic glass Output 10,000-ton 215 60 258.33%
Inventory 10,000-ton 18 8 125.00%
Sales volume 10,000-M2 4,594 3,770 21.86%
Architectural glass Output 10,000-M2 4,635 3,811 21.62%
Inventory 10,000-M2 195 153 27.45%
Sales volume 10,000-ton 231 236 -2.12%
Float glass Output 10,000-ton 224 243 -7.82%
Inventory 10,000-ton 7 15 -53.33%
Sales volume ton 301,514 268,874 12.14%
Electronic glass Output ton 297,593 277,954 7.07%
Inventory ton 22,465 26,538 -15.35%
Sales volume ton 4,840 8,454 -42.75%
High-purity crystalline
Output ton 4,946 8,957 -44.78%
silicon
Inventory ton 153 254 -39.76%
Sales volume 10,000-piece 18,843 23,946 -21.31%
Silicon wafer
Output 10,000-piece 19,318 23,020 -16.08%
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CSG Annual Report 2023
Inventory 10,000-piece 875 372 135.22%
Sales volume MW 592 540 9.63%
Solar cell Output MW 596 536 11.19%
Inventory MW 9 7 28.57%
Reasons for major changes (over 30% year-on-year) in relevant data
√ Applicable □ Not applicable
1. Photovoltaic glass: The increases in production volume, sales volume and inventory were mainly due to the
establishment of new production lines in some subsidiaries.
2. Float glass: The decrease in inventory was because the quantity of sales was greater than that of production during the
year.
3. High-purity crystalline silicon: The decreases in production volume and sales volume were due to the changed
production cycle as a result of the transformation of Yichang Polysilicon’s high-purity crystalline silicon production line.
4. Silicon wafer: The increase in inventory was mainly because the production and sales rhythm in the silicon wafer
business of subsidiaries were adjusted.
(4) Fulfilment of significant sales contracts and procurement contracts signed by the Company up to the
report period
√ Applicable □ Not applicable
Fulfilment of significant sales contracts signed by the Company up to the report period
√ Applicable □ Not applicable
Unit: RMB 0,000
Descriptio The amount The
Amount
n of the of sales cumulative
Total Total performed Amount to Normally Receivables
contract revenue amount of
Subject matter Name of the other party contract amount during the be performed collection
not being recognized sales
amount fulfilled report performed or not status
performed during the revenue
period
normally period recognized
LONGi Solar Technology Ltd.,
Zhejiang LONGi Solar Technology
Ltd., Taizhou LONGi Solar
Technology Ltd., Yinchuan LONGi
Solar Technology Ltd., Chuzhou
LONGi Solar Technology Ltd.,
Datong LONGi Solar Technology Not Normal
Photovoltaic glass 650,000 113,619 47,308 536,381 Yes 43,339 102,261
Ltd., LONGi (H.K.) Trading Limited, applicable refund
LONGi (KUCHING) SDN. BHD.,
Xianyang LONGi Solar Technology
Ltd., Jiangsu LONGi Solar
Technology Ltd., Jiaxing LONGi
Solar Technology Ltd., Xi’an LONGi
Green Building Technology Ltd.
High-purity Not Normal
Trina Solar Co., Ltd. 2,121,000 31,964 31,964 2,089,036 Yes 28,287 28,287
silicon materials applicable refund
Solar-grade raw
Not Normal
polycrystalline Customer 1 and Customer 2 999,900 30,832 30,832 969,068 Yes 27,285 27,285
applicable refund
silicon materials
Solar-grade raw Not
Customer 1,970,000 1,970,000 Yes
polycrystalline applicable
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CSG Annual Report 2023
silicon materials
Note: The above material contracts are long-term sales contracts signed between the Company and customers. A total supply volume
is given in such a contract, the specific price is negotiated on a monthly basis, and the total contract amount is subject to the final
transaction amount.
Fulfilment of significant procurement contracts signed by the Company up to the report period
□ Applicable Not applicable
(5) Constitution of operation cost
Industry and product classification
Unit: RMB
2023 2022
Increase/
Industry Item Ratio in Ratio in decrease
Amount operating Amount operating y-o-y
costs costs
Materials, Labor
Glass industry 11,472,952,253 81.13% 7,649,392,465 69.49% 49.99%
wages, Depreciation
Electronic glass & Display Materials, Labor
1,313,691,653 9.29% 1,245,581,644 11.32% 5.47%
industry wages, Depreciation
Solar energy and other Materials, Labor
1,668,976,777 11.80% 2,504,032,458 22.75% -33.35%
industries wages, Depreciation
Unit: RMB
2023 2022
Increase/
Product Item Ratio in Ratio in decrease
Amount operating Amount operating y-o-y
costs costs
Materials, Labor
Glass products 11,472,952,253 81.13% 7,649,392,465 69.49% 49.99%
wages, Depreciation
Electronic glass & Display Materials, Labor
1,313,691,653 9.29% 1,245,581,644 11.32% 5.47%
products wages, Depreciation
Solar energy and other Materials, Labor
1,668,976,777 11.80% 2,504,032,458 22.75% -33.35%
products wages, Depreciation
Note: The main components of operating costs include materials, labor, depreciation, etc. In order to avoid the disclosure of business
secrets and damage the interests of the listed company and investors, the operating costs are only separated and disclosed according to
the business sector and product classification of the Company.
(6) Whether the consolidated scope has changed during the report period
√ Yes □ No
How the equity int Date when the equity inter
Relationship wit The Company’s interes
Name erests were obtaine ests were obtained/the sub
h the Company t (%)
d sidiary was established
Guangdong Licheng Construction En
Subsidiary Acquired in cash March 21, 2023 100%
gineering Co., Ltd.
Subsidiary Guangxi CSG Mining Co., Ltd. Incorporated April 24, 2023 100%
Subsidiary CSG Japan Co., Ltd. Incorporated April 26, 2023 100%
Subsidiary Wuxuan Nanxin Mining Co., Ltd. Incorporated May 19, 2023 60%
Qinghai CSG Photovoltaic Technolo
Subsidiary Incorporated October 18, 2023 100%
gy Co., Ltd.
23
CSG Annual Report 2023
Jiangyou CSG Quartz Sand Co., Lt
Subsidiary Incorporated December 8, 2023 100%
d.
(7) Major changes or adjustment in business, product or service of the Company in the report period
□ Applicable √ Not applicable
(8) Major customers and major suppliers
Major customers of the Company
Total sales to the top five customers (RMB) 3,685,320,563
Proportion in total annual sales volume for top five customers 20.24%
Proportion of related party sales in total annual sales volume for top five customers 0%
Information of the top five customers of the Company
Serial Name of customer Sales volume (RMB) Proportion in total annual sales
1 Customer A 1,128,931,842 6.20%
2 Customer B 769,903,350 4.23%
3 Customer C 624,077,405 3.43%
4 Customer D 584,885,129 3.21%
5 Customer E 577,522,837 3.17%
Total -- 3,685,320,563 20.24%
Other statement of main customers
□ Applicable √ Not applicable
Major suppliers of the Company
Total purchase amount from the top five suppliers (RMB) 3,733,860,756
Proportion in total annual purchase amount from the top five suppliers 22.09%
Proportion of related party sales in total purchase amount from the top five suppliers 0%
Information of the top five suppliers of the Company
Serial Name of supplier Purchase amount (RMB) Proportion in total annual purchase
1 Supplier A 913,082,132 5.40%
2 Supplier B 901,591,818 5.34%
3 Supplier C 762,513,460 4.51%
4 Supplier D 601,974,336 3.56%
5 Supplier E 554,699,010 3.28%
Total -- 3,733,860,756 22.09%
Other statement of major suppliers
□ Applicable √ Not applicable
3. Expenses
Unit: RMB
24
CSG Annual Report 2023
2023 2022 Increase/decrease y-o-y Note of major changes
Sales expense 317,702,143 313,754,976 1.26%
Management expense 865,371,137 718,938,905 20.37%
Financial expense 158,826,105 148,212,982 7.16%
R&D expenses 739,301,765 644,146,614 14.77%
4. R&D expenses
√ Applicable □ Not applicable
Expected impact on the
Name of the major
Purpose Progress Target Company’s future
R&D project
development
In response to the national Through the optical design To achieve technical
concept requirements of and experimental breakthroughs and product
The product has lower
energy saving, green and low verification of a variety of upgrades of high-
emissivity, higher
R&D of the Multi- carbon in the whole life cycle membrane structures and performance building
selection factor and
silver Low-E product of buildings, Low-E products materials, the product has energy-saving LOW-E
better appearance
with multi-layer infrared been developed and products to meet the needs
performance.
reflection functional layer are finalized. The product has of national low-carbon
developed. excellent performance. development.
Realize the autonomy of
The project is aimed at The Company aspires AR glass product process
The development of
developing colourless double- to provide the market technology, cope with the
colourless double-layer AR
Development of layer AR coated glass to with AR coated glass changes of photovoltaic
coated glass has been
colourless double- reduce the impact of colour that meets architectural module application
completed, and the coated
layer anti-reflection differences in coated glass on aesthetics by scenarios and solve the
glass product has been
(AR) coated glass the appearance of modules and developing colourless application limitations
certified for its excellent
to diversify the portfolio of double-layer AR caused by the appearance of
performance.
CSG's AR coated glass. coated glass. coated glass color
difference.
On the basis of
Improve the safety
lightweight, to ensure
performance of 2.0mm
the strength Enrich the series of
2.0mm photovoltaic photovoltaic glass in extreme
The development of 2.0mm requirements of lightweight photovoltaic
glass full tempering environmental conditions
full tempered products has photovoltaic modules glass products to enhance
technology (such as strong winds, snow,
been completed. in extremely harsh the group's market
development hail) to ensure the stable
conditions, improve competitiveness.
operation of photovoltaic
product
modules.
competitiveness.
The successful
development of ultra-
thin photovoltaic glass
is suitable for
The development of ultra-
Develop ultra-thin glass, adapt lightweight double-
The production of ultra-thin thin photovoltaic glass
to the development trend of glass components,
Development of glass has reached the enhances the Group's
lightweight photovoltaic which is conducive to
ultra-thin expected goal and stable leading edge in ultra-thin
modules, and enrich the reducing the
photovoltaic glass production, with continuous photovoltaic glass
company's differentiated consumption of
mass production capacity. technology and creates core
product categories. resources and energy
competitiveness.
and meeting the needs
of energy conservation
and environmental
protection.
Develop a kiln structure
Meet the requirements Enhance the Group's design
operation process to achieve Preliminary control
Study on bottom of low carbon and and maintenance
continuous and stable measures have been carried
structure erosion of environmental capabilities for float glass
operation of the kiln and out according to the test
float glass melting protection, and extend melting furnaces to ensure
significantly extend the data, and the control effect is
kiln the service life of float the leading position in the
operation cycle of the higher than expected.
glass kiln. float glass industry.
production line.
25
CSG Annual Report 2023
To realize the
The research and
industrialization of
development of glass Realize a new application
high-aluminum glass
Developed independent formula has been completed, track of high aluminum
Development of high with independent
intellectual property rights of and the product performance glass, widen the application
aluminum glass for intellectual property
high aluminum glass for has been verified by several scenario of high aluminum
automobile rights, and provide
automobiles. rounds of laboratory and glass, and avoid disorderly
lightweight and high-
client, meeting the market competition in the industry.
strength automotive
requirements.
glass.
Complete the design of film Meet the mainstream
Triple silver low radiation Improve the energy-saving
system and product color appearance needs
Classic color system glass products of classic color performance of triple silver
debugging, and realize the of the market, and
triple silver product system were developed to products to ensure that the
mass production of products further improve the
development meet the mainstream demand products are leading the
through various performance energy-saving index of
of the market. industry.
tests. products.
Develop and apply stained
Complete the design of film Take the lead in the
Research and glass for photovoltaic To meet the designers'
system and product research and development
development of integration to enhance the demand for the
debugging, and realize the of photovoltaic integrated
stained glass for aesthetics of photovoltaic appearance color
mass production of products building glass, and expand
photovoltaic integrated buildings and design of photovoltaic
through various performance the application scenarios of
integrated building reduce the loss of power integrated buildings.
tests. energy-saving glass.
generation efficiency.
The reduction furnace
intelligent control system
technology upgrade has been Under the premise of
Upgrade the intelligent control
completed, and the energy ensuring product This project breaks through
system of the reduction
consumption index has quality and maximum the energy consumption
furnace to achieve the
Technological reached the industry-leading output, the intelligent bottleneck of the
sustainability and repeatability
upgrade of the level. The project and control system of the preparation of high purity
of the reduction furnace data,
intelligent control external units jointly reduction furnace is crystalline silicon, and can
and meet the requirements of
system for the declared the industry- upgraded to provide be widely used in different
digital, unmanned and
reduction kiln university-research strong support for the furnace types, belonging to
intelligent low-carbon
cooperation innovation, and digital green the core technology of high
technology for industry
won the second prize of development of purity crystalline silicon.
development.
science and technology enterprises.
progress of China Chemical
Society.
R&D staff of the Company
2023 2022 Ratio of change
Number of R&D staff (person) 1,879 1,953 -3.79%
The proportion of the number of R&D staff 12.82% 13.70% -0.88%
Educational structure of R&D staff
Undergraduate 959 948 1.16%
Master 54 47 14.89%
Doctor 3 7 -57.14%
Below undergraduate 863 951 -9.25%
Age composition of R&D staff
Under 30years old 436 470 -7.23%
30~40years old 949 1,008 -5.85%
Over 40years old 494 475 4.00%
Note: To facilitate investors' understanding of the Company's R&D personnel composition, adjustments have been made
to the statistical standards for R&D personnel in the report period. Statistics are based on the aggregation standards for
R&D expenses for each year. R&D personnel refers to employees directly engaged in R&D activities at the end of the
report period, alongside management staff and direct service staff closely related to the R&D activities.
R&D investment of the Company
26
CSG Annual Report 2023
2023 2022 Ratio of change
Amount of R&D investment (RMB) 754,224,256 691,969,726 9%
Ratio of the R&D investment to the operating income 4.15% 4.55% -0.40%
Amount of the capitalized R&D investment (RMB) 14,922,491 47,823,112 -68.80%
Ratio of the capitalized R&D investment to the R&D
1.98% 6.91% -4.93%
investment
Reasons and effects of major changes in the composition of the company's R&D staff
□ Applicable √ Not applicable
Reason of remarkable changes over the previous year of the ratio of the total R&D investment amount to the operating
income
□ Applicable √ Not applicable
Reason of substantial change of the ratio of the R&D investment capitalization and its reasonable explanation
√ Applicable □Not applicable
Due to the completion of some R&D projects.
5. Cash flow
Unit: RMB
Item 2023 2022 Increase/decrease y-o-y
Subtotal of cash inflow from operating activities 18,181,609,496 15,830,876,858 14.85%
Subtotal of cash outflow from operating activities 15,421,820,602 13,873,753,627 11.16%
Net cash flow from operating activities (1) 2,759,788,894 1,957,123,231 41.01%
Subtotal of cash inflow from investment activities 54,903,880 3,808,707,836 -98.56%
Subtotal of cash outflow from investment activities 4,308,138,530 6,115,102,337 -29.55%
Net cash flow from investment activity (2) -4,253,234,650 -2,306,394,501 84.41%
Subtotal of cash inflow from financing activity 3,902,491,900 4,401,690,981 -11.34%
Subtotal of cash outflow from financing activity 3,958,565,009 2,222,287,291 78.13%
Net cash flow from financing activity (3) -56,073,109 2,179,403,690 -102.57%
Net increased amount of cash and cash equivalent (4) -1,542,756,596 1,837,540,679 -183.96%
Statement on the main factors in the major changes of relevant data
√ Applicable □ Not applicable
(1) It was mainly due to the increase in cash received from sales of goods or rendering of services.
(2) It was mainly due to the increase in cash paid to acquire fixed assets, intangible assets and other long-term assets, etc.
(3) It was mainly due to the increase in cash repayments of borrowings.
(4) It was mainly due to the decrease in net cash flow from financing activity.
Statement of the reasons for significant differences between the net cash flow from operating activities and the net
profit of the year during the report period
□ Applicable √ Not applicable
V. Non-main business analysis
√ Applicable □ Not applicable
27
CSG Annual Report 2023
Unit: RMB
Percentage to Whether
Amount Explanation of the reason
total profits sustainable or not
Income from Mainly interest on discounted notes, debt
-6,610,842 -0.41% No
investment restructuring, etc.
Impairment of assets 346,737,457 21.24% Mainly impairment of long-term assets, etc. No
Mainly payments that cannot be made,
Non-operating income 23,191,407 1.42% No
insurance compensation, etc.
Non-operating Mainly loss on the retirement of non-
13,420,895 0.82% No
expenditure current assets, etc.
VI. Asset and liability analysis
1. Significant changes in asset composition
Unit: RMB
End of 2023 Beginning of 2023
Increase or
Percentage Percentage Explanation of
decrease in
Amount to total Amount to total significant changes
proportion
assets assets
Mainly due to the
Cash at bank and
3,076,774,218 10.13% 4,604,607,779 17.78% -7.65% repayment of mature
on hand
corporate bonds
Mainly due to the
Accounts
1,881,796,408 6.20% 1,179,992,784 4.56% 1.64% increase in sales revenue
receivable
from photovoltaic glass
Inventories 1,590,224,795 5.24% 1,783,941,982 6.89% -1.65%
Investment
290,368,105 0.96% 290,368,105 1.12% -0.16%
properties
Fixed assets 13,145,568,631 43.30% 11,243,236,175 43.40% -0.10%
Mainly due to the
Construction in increase in expenditure
4,325,016,420 14.24% 2,520,362,291 9.73% 4.51%
progress on ongoing constructions
of some subsidiaries
Mainly due to the rental
of building space and
Right-of-use assets 21,637,628 0.07% 9,908,413 0.04% 0.03%
land by some
subsidiaries
Short-term
436,853,583 1.44% 345,000,000 1.33% 0.11%
borrowings
Contract liabilities 362,538,795 1.19% 418,051,975 1.61% -0.42%
Mainly due to the
Long-term
6,221,648,676 20.49% 4,353,589,980 16.81% 3.68% increase in loans for the
borrowings
projects
Mainly due to the
Lease liabilities 15,134,562 0.05% 3,564,330 0.01% 0.04% increase in the leasing
business of subsidiaries
Mainly due to the
increase in inflows in the
Notes receivable 1,593,520,494 5.25% 156,943,437 0.61% 4.64%
form of acceptance notes
and the increase in notes
28
CSG Annual Report 2023
in pledge
Mainly due to the
Receivables
529,945,623 1.75% 1,095,412,643 4.23% -2.48% consigned collection of
financing
due notes, etc.
Mainly due to the
maturity within one year
Non-current assets
84,191,224 0.28% 20,000,000 0.08% 0.20% of previously purchased
due within one year
large-amount certificate
of deposit
Mainly due to the
Other current assets 352,066,698 1.16% 108,248,545 0.42% 0.74% increase in overpaid
value added tax, etc.
Mainly due to the
transfer of the
prepayment for mining
concession from other
Intangible assets 2,490,530,224 8.20% 1,438,102,666 5.55% 2.65%
non-current assets to
intangible assets as the
mining concession
certificate was obtained
Mainly due to the
increase in the carry-over
Development of R&D projects of some
0 0% 46,755,816 0.18% -0.18%
expenditure subsidiaries into
intangible assets upon
completion
Mainly due to the
Long-term prepaid
18,764,429 0.06% 2,647,939 0.01% 0.05% increase in items to be
expenses
amortized
Mainly due to the
impairment provisions
Deferred tax assets 223,025,031 0.73% 161,489,749 0.62% 0.11%
made by some
subsidiaries
Mainly due to the
transfer of the
prepayment for mining
Other non-current concession from other
396,600,354 1.31% 856,620,485 3.31% -2%
assets non-current assets to
intangible assets as the
mining concession
certificate was obtained
Mainly due to the
Notes payable 2,041,353,189 6.72% 994,557,496 3.84% 2.88%
increase in notes issued
Mainly due to the
increase in engineering,
Accounts payable 3,341,624,602 11.01% 2,033,542,627 7.85% 3.16%
equipment and material
payables
Non-current Mainly due to the
liabilities due 1,248,891,979 4.11% 2,481,433,006 9.58% -5.47% repayment of mature
within one year corporate bonds
Mainly due to the
increase in notes
Other current unqualified for
454,332,686 1.50% 50,407,240 0.19% 1.31%
liabilities derecognition, the
issuance of electronic
debt obligation, etc.
Estimated 13,050,082 0.04% 0 0% 0.04% Mainly due to the
29
CSG Annual Report 2023
Liabilities increase in mine
rehabilitation costs, etc.
Mainly due to the
Long-term
88,204,163 0.29% 129,236,878 0.50% -0.21% payments for finance
payables
leases
Mainly due to a low base
in the prior period and
Special reserve 1,411,139 0% 731,580 0% 0%
the changes in the
current period
The proportion of overseas assets was relatively high
□Applicable √ Not applicable
2. Assets and liabilities measured at fair value
√ Applicable □ Not applicable
Unit: RMB
Profit and
Impairmen
loss from Cumulative Purchase Amount
t accrued
changes in changes in fair amount sold in Closing
Item Opening balance in the Other changes
fair value in value included for this this balance
current
the current in equity period period
period
period
financial assets
Investment
290,368,105 290,368,105
properties
Receivables
1,095,412,643 -565,467,020 529,945,623
financing
Total of the above 1,385,780,748 -565,467,020 820,313,728
Other changes: nil
During the report period, whether the company’s main asset measurement attributes changed significantly or not
□Yes √No
3. Limited asset rights as of the end of the report period
Unit: RMB
Item Limited amount Limited reason
Monetary funds 25,512,563 Restricted circulation of deposits, freezes, etc
Note receivable 1,157,485,085 Restricted pledge
Fix assets 106,982,081 Limited finance lease
Total 1,289,979,729
VII. Investment
1. Overall situation
√Applicable □ Not applicable
Investment in the report period (RMB) Investment in the same period of the previous year ( RMB) Changes
30
CSG Annual Report 2023
4,308,138,530 6,115,102,337 -29.55%
2. The major equity investment obtained in the report period
□ Applicable √ Not applicable
31
CSG Annual Report 2023
3. The major ongoing non-equity investment in the report period
√ Applicable □ Not applicable
Unit: RMB
Reasons for
Fixed Accumulative Accumulative
not achieving
Way of asset Amount invested amount actually revenue Date of Index of
Industry Progress of Expected the planned
Project name invest during the report invested by the Source of funds achieved by disclosure (if disclosure (if
investment involved project revenue progress and
ment or period end of the report the end of the applicable) applicable)
the expected
not period report period
revenue
No revenue as
Zhaoqing CSG High- the project is Announcement
Manufacturing Under 13 December
grade Automotive Glass Self-built Yes 55,025,636 147,601,326 Own funds 58,000,000 still in the number: 2019-
industry construction 2019
Production Line Project construction 077
period.
The project has
Anhui Fengyang
been
Lightweight & High- Own funds and
completed, and Announcement
permeability Panel for Manufacturing loans from Already put
Self-built Yes 615,304,618 3,200,105,693 435,660,000 the revenue 6 March 2020 number: 2020-
Solar Energy Equipment industry financial into operation
thereof has 010
Manufacturing Base institutions
been reflected
Project
in profits.
Part of the
project has
Wujiang CSG
Own funds and been
Architectural New Announcement
Manufacturing loans from Under completed, and
Architectural Glass Self-built Yes 8,365,823 87,536,510 50,490,000 24 June 2020 number: 2020-
industry financial construction the revenue
Intelligent Manufacturing 051
institutions thereof has
Plant Construction Project
been reflected
in profits.
No revenue as
Own funds and
Xi’an CSG Energy-saving the project is Announcement
Manufacturing loans from Under 7 November
Glass Production Line Self-built Yes 180,889,972 222,583,993 42,220,000 still in the number: 2020-
industry financial construction 2020
Project construction 070
institutions
period.
32
CSG Annual Report 2023
The project has
been
Own funds and
Hebei Panel Glass Ultra- completed, and Announcement
Manufacturing loans from Already put 27 March
thin Electronic Glass Line Self-built Yes 51,161,670 308,479,283 46,710,000 the revenue number: 2021-
industry financial into operation 2021
Construction Project thereof has 008
institutions
been reflected
in profits.
The project has
been
Xianning CSG 1200T/D Own funds and
completed, and Announcement
Photovoltaic Packaging Manufacturing loans from Already put 27 March
Self-built Yes 129,225,232 856,221,597 128,350,000 the revenue number: 2021-
Material Production Line industry financial into operation 2021
thereof has 008
Project institutions
been reflected
in profits.
No revenue as
Own funds and
the project is Announcement
CSG East China Manufacturing loans from Under 27 August
Self-built Yes 4,904,808 7,640,989 still in the number: 2021-
Headquarters Building industry financial construction 2021
construction 039
institutions
period.
No revenue as
CSG Guangxi Beihai Own funds and
the project is Announcement
Photovoltaic Green Manufacturing loans from Under 10 September
Self-built Yes 705,147,093 738,360,846 557,640,000 still in the number: 2021-
Energy Industrial Park industry financial construction 2021
construction 041
Project (Phase I) institutions
period.
No revenue as
Hefei CSG Energy-saving Own funds and
the project is Announcement
Glass Intelligent Manufacturing loans from Preparatory 15 October
Self-built Yes 1,196,423 3,204,661 46,660,000 still in the number: 2021-
Manufacturing Industry industry financial stage 2021
preparatory 043
Base Project institutions
period.
Xianning CSG Energy-
No revenue as
saving Glass Co., Ltd. Own funds and
the project is Announcement
Production Line Manufacturing loans from Under 3 December
Self-built Yes 40,338,112 46,024,610 27,130,000 still in the number: 2021-
Reconstruction and industry financial construction 2021
construction 051
Expansion Construction institutions
period.
Project
Phase I Upgrading and Own funds and No revenue as Announcement
Manufacturing Under 25 December
Technical Transformation Self-built Yes 2,396,602 26,691,570 loans from 60,210,000 the project is number: 2021-
industry construction 2021
Project of Qingyuan CSG financial still in the 053
33
CSG Annual Report 2023
Energy-Saving New institutions construction
Materials Co., Ltd. period.
The project has
been
Dongguan Solar G6/G7 Own funds and
completed, and Announcement
Line Process and Manufacturing loans from Already put 29 March
Self-built Yes 46,971,826 65,737,426 41,560,000 the revenue number: 2022-
Equipment Upgrading industry financial into operation 2022
thereof has 006
Project institutions
been reflected
in profits.
High-purity crystalline No revenue as
Own funds and
silicon project with an the project is Announcement
Manufacturing loans from Under
annual output of 50,000 Self-built Yes 2,636,455,139 2,646,774,148 863,280,000 still in the 23 June 2022 number: 2022-
industry financial construction
tons in Haixi Prefecture, construction 024
institutions
Qinghai Province period.
Xianning Float No. 2 No revenue as
Own funds and
Production Line (700 construction of Announcement
Manufacturing loans from Already put 9 November
tons/day) Technology Self-built Yes 145,119,040 145,119,040 38,350,000 the project has number: 2022-
industry financial into operation 2022
Upgrade and just been 061
institutions
Transformation Project completed.
No revenue as
Anhui Fengyang 37.6 Own funds and
the project is Announcement
MW Distributed Manufacturing loans from Under 9 November
Self-built Yes 83,354,432 83,354,432 11,000,000 still in the number: 2022-
Photovoltaic Power industry financial construction 2022
construction 061
Generation Project institutions
period.
Chengdu Float Three Sets No revenue as
Own funds and
of Standby Environmental construction of Announcement
Manufacturing loans from Already put 9 November
Protection Facilities for Self-built Yes 54,638,688 55,247,681 the project has number: 2022-
industry financial into operation 2022
Flue Gas Treatment just been 061
institutions
Construction Project completed.
Total -- -- -- 4,760,495,114 8,640,683,805 -- -- 2,407,260,000 0 -- -- --
34
CSG Annual Report 2023
4. Financial assets investment
(1) Securities investment
□ Applicable √ Not applicable
There was no securities investment during the report period.
(2) Derivative investment
□ Applicable √ Not applicable
There was no derivative investment during the report period.
5. Use of raised fund
□ Applicable √ Not applicable
There was no use of raised fund during the report period.
VIII. Sales of major assets and equity
1. Sales of major assets
□ Applicable √ Not applicable
The Company did not sell major assets during the report period.
2. Sales of major equity
□ Applicable √ Not applicable
IX. Analysis of main holding companies 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
Registered Operating
Name of company Type Main business Total assets Net Assets Operating profit Net profit
capital revenue
Production and
Yichang CSG
sales of high- 1,467.98
Polysilicon Co., Subsidiary 1,836,144,837 1,335,732,586 1,354,066,207 262,056,789 273,886,936
purity silicon million
Ltd.
material products
Anhui CSG New
Production and
Energy Material 1,750
Subsidiary sales of solar glass 5,247,187,947 1,938,768,694 3,718,776,281 438,567,640 391,745,328
Technology Co., million
products
Ltd.
35
CSG Annual Report 2023
Manufacture and
Chengdu CSG
Subsidiary sales of various 260 million 857,732,778 569,417,205 1,382,170,791 182,473,711 161,895,776
Glass Co., Ltd.
special glass
Manufacture and
Xianning CSG
Subsidiary sales of various 235 million 2,295,851,888 868,550,933 1,663,503,020 144,959,602 142,685,803
Glass Co., Ltd.
special glass
Manufacture and
Wujiang CSG 565.04
Subsidiary sales of various 1,432,299,755 907,583,093 1,925,345,420 141,149,440 127,071,020
Glass Co., Ltd. million
special glass
Dongguan CSG
Deep processing
Architectural Subsidiary 240 million 972,676,410 561,958,955 1,146,130,755 134,578,893 120,513,254
of glass
Glass Co., Ltd.
Yichang CSG Production and
Polysilicon Co., Subsidiary sales of display 560 million 817,636,507 445,476,253 334,903,252 -262,346,222 -220,020,614
Ltd. components
Particulars about subsidiaries obtained or disposed in report period
□Applicable √ Not applicable
Description of main holding and shareholding companies
In 2023, Yichang CSG Polysilicon Co., Ltd. experienced a decline in both the output, sales volume, and unit price of
products such as high-purity crystalline silicon, resulting in a year-on-year decrease in operating results. Anhui CSG New
Energy Material Technology Co., Ltd. and Xianning CSG Glass Co., Ltd. experienced a significant boost in the output
and sales volume of photovoltaic glass as they put new production lines into operation, leading to substantial growth in
operating results compared to the previous year. The operating performance of Yichang CSG Display Co., Ltd. declined
due to the downturn in the electronic consumer goods market; meanwhile, a provision for long-term asset impairment
was made this year based on the results of asset impairment testing, which resulted in its significant losses.
X. Structured main bodies controlled by the Company
□ Applicable √ Not applicable
XI. Outlook of the Company’s future development
1. Tendency of development of the industries the Company engages
Please refer to the relevant content of "I. Particulars about the industry the Company engages in during the report period".
2. The Company’s development strategy
The Group will formulate strategic development goals and implement strategic development plans under the guidance the
national strategic goals of “dual carbon”, with a focus on “low carbon and energy saving, green and environmental
protection, scientific and technological innovation, and intelligent manufacturing”. The Company plans to form the three
industrial clusters of energy-saving glass, electronic glass and photovoltaic materials, and create the three high-grade
products of multi-silver “Ice Kirin” glass, high-grade electronic glass and “Blue Diamond” ultra-white glass. The
Company will integrate industrial resources, strengthen the advantage of raw material resources, improve technology and
R&D strength, continue to enhance its core competitiveness, expand market share and market influence, occupy a
dominant position in the industry, and comprehensively improve the credibility and influence of the CSG brand. Also, it
will plan the layout of the CSG industry from a global and macro perspective, accelerate the development of new
36
CSG Annual Report 2023
industries and consolidate the Company’s capability to resist cyclical risks, and build CSG into an internationally
influential enterprise group that is related to both the upstream and downstream portions of the glass industry and the
energy industry.
3. Business plan of the Company in 2024
① Strengthen the capability of group operation and management, improve the level of fine management and professional
management, and promote the implementation of such measures as cost reduction and efficiency increase management,
supply chain management and lean management to ensure the completion of the Company’s operation and construction
objectives in 2024;
② Build an informatization platform for R&D management, improve the qualification of the R&D innovation platform
of CSG, plan the pipeline for the development of the next generation of new products, and promote technological
upgrading and product iteration;
③ Enhance talent management, establish a remuneration incentive system that links remuneration with performance,
improve the Company’s incentive mechanism, strengthen employee training, select and cultivate reserve cadres, introduce
high-quality talents, and intensify the building of talents echelon.
④ Strengthen capital planning, control capital risks and reduce financing costs;
⑤ Further enhance cost management and reduce various costs to improve market competitiveness;
⑥Steadily promote the safe construction and timely operation of projects under construction, and explore the relevant
industrial chains for breakthroughs;
⑦ Improve the safety, environmental protection and duty performance capability management system, and carry on with
the building of the informatization management platform for safety and environmental protection to significantly improve
safety and environmental protection management.
4. Fund demand, use plan and fund source
In 2024, the Company’s capital expenditure is expected to be approximately RMB 5,356 million, which is mainly used
for construction of the project of lightweight & high-permeability panel for solar energy equipment and complementary
sand ore projects, construction of the Qinghai high-purity crystalline silicon project, technical upgrade and transformation
in all relevant industries, capacity expansion, etc. The main sources of funds are own funds and loans from financial
institutions.
5. Risk factors and countermeasures
In 2024, in the face of severe international and domestic political and economic development and the task of building a
“Century CSG”, the Company will face the following risks and challenges:
① The international political environment still faces many uncertainties.
Affected by the complicated international political environment, domestic economy still faces many challenges and
uncertainties. In 2024, the Company will continue to strengthen its attention to the market, timely adjust operation strategy
according to market changes, and strive to achieve the annual core work objectives through steady operation.
②The glass business faces fierce competition among similar products, and pressure from rising price of raw materials
and fuels such as heavy alkali and natural gas and increasingly high labour cost. The photovoltaic glass industry not only
faces the risk of temporarily exacerbated overcapacity but also encounters severe homogenisation risks within the industry.
Moreover, it faces risks stemming from competition between various processes of the photovoltaic industry chain, which
can impact demand for photovoltaic glass. With the real estate sector entering an adjustment cycle and overall investment
37
CSG Annual Report 2023
declining, the architectural glass industry faces the risk of intensified competition within the glass deep processing sector.
The float glass industry faces the risk of temporarily decreased demand in the downstream architectural glass market. The
electronic glass industry contends with sustained overcapacity, intensifying supply-demand imbalances, and with
heightened competition among domestic players offering similar products. The continuous release of new capacity in the
solar energy industry will pose the risk of price declines due to temporary overcapacity. To cope with aforesaid risks, the
Company will take the following measures:
A. In the photovoltaic glass segment, the Company will devise targeted strategies and implement a range of robust
measures to achieve its business objectives. In terms of internal operation, its core focus remains on "ensuring safety,
stabilising production, improving quality, and reducing costs." The Company is fully committed to the stability of the
production process and the effective improvement of product quality, and will unswervingly and continuously promote
cost reduction and efficiency enhancement, so as to strengthen the core competitiveness. Regarding sales, the Company
will vigorously pursue the strategy of "expanding markets, adjusting structure, reducing costs, and controlling risks."
Based on industry characteristics, it will optimise its product structure to match market demand and continuously advance
lean management and differentiated operations to further enhance profitability. The Company will also intensify efforts
to develop key customers, thereby matching the new capacity released and enhancing industry competitiveness.
Externally, it will pay closer attention to the demand-supply dynamics of raw materials, and timely and strategically
prepare materials to reduce the impact of the price fluctuations of raw materials on its operating results.
B. In the architectural glass segment, the Company will accelerate the pace of digital, networked and intelligent
transformation of the manufacturing industry to reduce the consumption of manpower, materials and energy. The
Company will strengthen the development of high-end market and overseas market, actively respond to market changes,
continuously deepen market exploitation, refine market layout, increase the application of new products and new
technologies, improve service capability, give full play to quality, technology and brand advantages, and at the same time,
maintain the advantageous position of the Company through market-oriented extension of industrial chain.
C. In the float glass segment, the Company will persist in pursuing differentiated operations, refining product structure,
and boosting the share of high-value-added offerings. Additionally, through technological upgrades, the Company aims
to enhance production efficiency and lower manufacturing costs, thereby consistently enhancing its competitive edge in
the industry.
D. In the electronic glass and display segment, the Company will continue to strengthen CSG’s brand presence for
electronic glass, build a solid foundation for medium- and high-end products, enhance customer recognition and stabilise
the high-end market share. In addition, it will further strengthen the R&D and innovation of new technologies, new
products and new applications, constantly narrow the gap from international peers, maintain technical leading advantage
in China, and at the same time, intensify efforts to explore new market applications, broaden development directions in
the industry and explore more applications on the market.
E. In the solar energy segment, the Company will strengthen the integration of resources across the industry chain, pay
attention to the price trend, supply-demand relationship and terminal demands in upstream and downstream procurement
and sales, increase R&D investment, strengthen operation management, and maintain corporate competitiveness in market
segments; keep an eye on market changes, rationally adjust inventories, vigorously carry out cost reduction and efficiency
increase activities, implement energy saving and cost control measures, and timely upgrade and replace the equipment to
improve production efficiency and ensure the Company’s benefits; and ensure continuous leadership industry-wide
through the technological and cost advantages of new production lines and the efficient and professional business
capabilities of the team.
③ Risk of fluctuation of foreign exchange rate: At present, nearly 8.55% of the operating revenue of the Company is
from overseas, and in the future, the Company will further develop overseas business. 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
38
CSG Annual Report 2023
exchange in a timely manner, and use safe and effective risk evading instrument and product to relatively lock exchange
rate, thus reducing the risk caused by fluctuation of exchange rate.
XII. Reception of research, communication and interview
□Applicable √Not applicable
No reception of research, communication, interview and other activities occurred during the reporting period.
XIII. Implementation of the “Quality and Earnings Dual Improvement” Action Plan
Indicate whether the Company has disclosed the “Quality and Earnings Dual Improvement” Action Plan.
□ Yes √ No
39
CSG Annual Report 2023
Section IV. Corporate Governance
1.Basic Situation of Corporate Governance
In strict compliance with the requirements of the relevant laws and regulation including The Company Law, Securities
Law and Rule of Governance for Listed Company, the Company has been putting efforts in improving the corporate
governance, strengthening management of information disclosure, regulating operation activities and establishing a
modern corporate system. At present, the system for corporate governance of the Company is basically sound, operation
is regulated, corporate governance is consummated, which accord with the requirements of relevant documents on
corporate governance of listed company issued by CSRC.
According to the "Company Law" and other relevant laws and regulations and the "Articles of Association", the Company
has established and improved a relatively standardized corporate governance structure, and formed a decision-making
and operation management system with the shareholders' meeting, the board of directors, the board of supervisors and the
Company's management as the main structure. The power organs, decision-making bodies, supervision bodies and
managers have clear rights and responsibilities, perform their respective duties and effectively monitor and balance, and
perform various duties stipulated in the "Company Law" and "Articles of Association" in accordance with the law.
According to the "Articles of Association" and other relevant corporate governance regulations, the Company has
formulated the "Procedure Rules for Shareholders' Meeting", "Procedure Rules for the Board of Directors", "Procedure
Rules for the Supervisory Committee", "General Manager's Work Rules" and other relevant systems, which provides an
institutional guarantee for the standardized operation of the corporate governance structure of the Company.
The Company's "Three Committees" (General Meeting of Shareholders, Board of Directors and Board of Supervisors)
operate in a standardized manner, and the procedures for convening and convening meetings comply with relevant
regulations. The current directors, supervisors, and senior management are able to actively and effectively fulfill relevant
responsibilities and obligations. Independent directors have put forward opinions or suggestions on the company's
development decisions. The Company respects and listens to the opinions and suggestions of independent directors, and
implements them in accordance with the final resolutions of the board of directors and the shareholders' meeting, playing
a positive role in safeguarding the interests of the company and small and medium-sized shareholders, At the same time,
the Company also provides sufficient protection for the performance of independent directors and supervisors. The Board
of Directors has established four special committees, namely, the Strategy Committee, the Audit Committee, the
Nomination Committee, and the Remuneration and Evaluation Committee, to assist the Board of Directors in performing
relevant functions and provide professional suggestions and opinions for the Board of Directors' decision-making. The
Board of Directors and the Board of Supervisors of the Company report to the General Meeting of Shareholders on the
performance of their duties by directors and supervisors, and the independent directors make a debriefing report to the
General Meeting of Shareholders. The senior management personnel have a clear division of labor, clear responsibilities
and authorities, and operate in compliance with laws and regulations.
In strict accordance with the requirements of the Listing Rules of Shenzhen Stock Exchange and other relevant laws and
regulations, the Company earnestly performs the obligation of information disclosure to ensure the authenticity, accuracy,
integrity and timeliness of information disclosure. The Company earnestly fulfills its information disclosure obligations
in strict accordance with the requirements of the Shenzhen Stock Exchange Listing Rules and other relevant laws and
regulations to ensure the truthfulness, accuracy, completeness and timeliness of information disclosure. Shanghai
Securities News, Securities Daily and Juchao Website (www.cninfo.com.cn) are designated media for the Company's
information disclosure to ensure that all shareholders of the Company have equal access to the Company's business
information. The Company has established the Information Disclosure Management System and promptly improved it in
40
CSG Annual Report 2023
accordance with newly issued laws and regulations, clarified the standards of insider information, and established inside
information insider registration system and record management system. In order to further strengthen the Company's
internal information disclosure control, enhance the disclosure consciousness of relevant personnel, and improve the
quality of corporate information disclosure, in 2016, the Company set up information Disclosure Committee, and
formulate Rules for the implementation of the information disclosure Committee. During the report period, the Company
disclosed information with facticity, completeness, timeliness and fairness, strictly fulfilled the responsibilities and
obligations of information disclosure of listed companies to ensure that investors are able to keep abreast of the Company's
operation and development strategies. There was no regulatory punishment caused by information disclosure in the report
period. Meanwhile, the Company delivered the Inside Information Insider Table to Shenzhen Stock Exchange when
submitting periodic reports.
The Company has seriously implemented the requirements of the relevant regulatory to cash dividends. The Company
formulated the Return plan for Shareholders of CSG Holding Co., Ltd. in the Next Three Years (2022-2024) according to
relevant regulations of the Notice of Further Implementation of Cash Dividends of the Listed Companies (ZJF No.: [2012]
37) and the Regulatory Guidelines of Listed Companies No. 3-Cash Dividends of Listed Companies issued by China
Securities Regulatory Commission, further improved the Company’s decision-making and supervision mechanism for
distribution of profits, and protected the interests of investors.
During the report period, it did not exist that the Company provided the undisclosed information to the largest shareholder.
And it did not exist that non-operating fund of listed Company was occupied by the largest shareholder and its affiliated
enterprises.
Whether the actual condition of corporate governance is materially different from the laws, administrative regulations
and the provisions on the governance of listed companies issued by the CSRC
□Yes √ No
The actual condition of corporate governance is not materially different from laws, administrative regulations and the
provisions on the governance of listed companies issued by the CSRC.
II. Independency of the Company relative to the largest shareholder in aspect of businesses,
personnel, assets, organization and finance
During the report period, the Company has been absolutely independent in business, personnel, assets, organization and
finance from its largest shareholder. The Company has an independent and complete business system and independent
management capability.
1. In terms of business: The Company owns independent purchase and supply system of the raw resources, complete
production systems, independent sale system and customers. The Company is completely independent from the largest
shareholder in business. The largest shareholder and its subsidiaries do not engage any identical business or similar
business as the Company.
2. In terms of personnel: The Company established integrated management system of labor, personnel, salaries and the
social security, which were absolutely independent from its holding shareholder’s. Personnel of the managers, person in
charge of the financial and other executive managers are obtained remuneration from the Company since on duty in the
Company, and never received remuneration or take part-time jobs in the largest shareholder’ company and other
enterprises controlled by the largest shareholder. The recruitment and dismissal of Directors are conducted through legal
procedure and the manager has been appointed or dismissed by Board of Directors. The Board of Directors and the
Shareholders’ General Meeting have not received any interference of decisions on personnel appointment and removal
from the largest shareholder.
3. In terms of asset: the Company is able to operate business independently and enjoys full control over the production
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CSG Annual Report 2023
system, auxiliary production system and facilities, land use right, industry property and non-patent technology owned or
used by the Company. The largest shareholder has never occupied, damaged or intervened to operation on these assets.
4. In terms of organization: The Company possessed sound corporate governance structure, established Shareholders’
General Meeting, Board of Directors, Supervisory Board, appointed Senior management, and fixed related function
departments. The Company had been totally independent from its largest shareholder in organization structure. The
Company has its own office and production sites that are different from those of the largest shareholder. The largest
shareholder has not in any way affected the independence of the Company's operation and management.
5. In terms of finance: The Company has set up independent financial department, established independent accounting
calculation system and financial management system (included management system of its subsidiaries). The financial
personnel of the Company didn’t take part-time jobs in units of largest shareholder or its subordinate units. The Company
has independent bank accounts, separated from the largest shareholder. The Company is independent taxpayer, paid taxes
independently according the laws and didn’t pay mixed taxes with the largest shareholder. The financial decision-making
of the Company was independent, and the use and management of funds were independent. The Company never offered
guarantee to their largest shareholder and its subordinate units and other related party. The largest shareholder and its
related have never occupied or disguisedly occupied the capital of the Company.
III. Horizontal competition
□ Applicable √ Not applicable
IV. Information on the annual general meeting and extraordinary general meeting held
during the report period
1. The General Meeting of Shareholders during the report period
Ratio of
Meeting Date of
Session of meeting Type investor Meeting resolution
date disclosure
participation
Extraordinary Announcement on Resolutions of
The First Extraordinary
General March 16, March 17, the First Extraordinary General
General Shareholders’ 24.34%
Shareholders’ 2023 2023 Shareholders’ Meeting of 2023
Meeting of 2023
Meeting （Announcement No.: 2023-005）
Annual Announcement on Resolutions of
Annual General Shareholders’ General June 28, June 29, Annual General Shareholders’
24.92%
Meeting of 2022 Shareholders’ 2023 2023 Meeting of 2022（Announcement
Meeting No.: 2023-023）
Extraordinary Announcement on Resolutions of
The Second Extraordinary
General October 17, October 18, the Second Extraordinary General
General Shareholders’ 25.35%
Shareholders’ 2023 2023 Shareholders’ Meeting of 2023
Meeting of 2023
Meeting （Announcement No.: 2023-034）
Extraordinary Announcement on Resolutions of
The Third Extraordinary
General November November the Third Extraordinary General
General Shareholders’ 24.14%
Shareholders’ 29, 2023 20, 2023 Shareholders’ Meeting of 2023
Meeting of 2023
Meeting （Announcement No.: 2023-039）
2. The preference shareholders whose voting rights have been restored request the convening of an
extraordinary general meeting
□ Applicable √ Not applicable
42
CSG Annual Report 2023
V. Directors, supervisors and senior executives
1. Basic information
Amount of Amount of
Shares held shares shares Reason for
Start dated End date Other Shares held at
at period- increased decreased increase or
Name Sex Age Title Working status of office of office changes period-end
begin in this in this decrease
term term (share) (Share)
(Share) period period of shares
(Share) (Share)
Chairman of the
Chen Lin Female 52 Currently in office 2016/11/19 1,623,065 1,623,065
Board
Shen Chengfang Male 58 Director Currently in office 2022/08/03
Independent
Zhu Qianyu Female 49 Currently in office 2019/04/10
Director
Independent
Zhang Min Male 47 Currently in office 2022/11/25
Director
Independent
Shen Yunqiao Male 48 Currently in office 2023/03/16
Director
Cheng Jinggang Male 43 Director Currently in office 2020/05/21
Yao Zhuanghe Male 65 Director Currently in office 2020/05/21
Cheng Xibao Female 42 Director Currently in office 2016/01/21
Chairman of the
Supervisory
Li Jianghua Male 47 Board, Currently in office 2019/03/27
Employee
Supervisor
Meng Lili Female 46 Supervisor Currently in office 2020/05/21
Employee
Dai Pingsheng Male 42 Currently in office 2021/07/08
Supervisor
Secretary of the
Party
Committee,Exec Currently in office 2022/05/16
utive Vice
He Jin Male 52 897,600 897,600
President
Acting CEO Currently in office 2022/08/15
Vice President Currently in office 2022/05/16
Wang Wenxin Female 46 Chief Financial 154,600 154,600
Currently in office 2022/05/16
Officer
Secretary of the
Chen Chunyan Female 42 Currently in office 2022/09/26 49,271 49,271
Board
Independent 2023/03/
Zhu Guilong Male 60 Leaving office 2017/05/02
Director 16
Total -- -- -- -- -- -- 2,724,536 0 0 0 2,724,536 --
During the report period, whether there was any resignation of directors and supervisors and dismissal of senior
executives during their terms of office
√ Yes □ No
The Board of Directors of the Company received a written resignation report submitted by Independent Director Mr. Zhu
Guilong on 23 November 2022. Mr. Zhu Guilong resigned as the Company’s Independent Director due to personal career
reasons. Mr. Zhu Guilong’s resignation report took effect on 16 March 2023.
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CSG Annual Report 2023
Changes in directors, supervisors and senior executives of the company
√Applicable □ Not applicable
Name Position Type Date Reason
Shen Yunqiao Independent Director Be elected 2023-03-16 By election of Independent Director
Zhu Guilong Independent Director Post leaving 2023-03-16 Resignation voluntarily
2. Post-holding
Major professional backgrounds and working experience of directors, supervisors and senior executives and their major
responsibilities in the Company at present
Chen Lin: At present, she is Chairman of the Supervisory Committee of Foresea Life Insurance Co., Ltd. and Chairman
of the Board of the Company.
Shen Chengfang: He took the posts of Chief Actuary of Ping An Life Insurance Company of China, Ltd. and Chief
Actuary and Deputy General Manager of Foresea Life Insurance Co., Ltd. At present. he is General Manager and
Executive Director of Foresea Life Insurance Co., Ltd., and Director of the Company.
Zhu Qianyu: At present, she is an associate professor and a supervisor of masters at the Renmin University of China and
a researcher at the Institute for Rural Economy and Finance, Institute for National Development and Strategies, and
Institute for Carbon Peak and Neutrality of the Renmin University of China. She has undertaken more than ten research
projects funded by the National Natural Science Foundation of China, the National Social Science Fund of China, the
Social Science Fund of Beijing, the National Development and Reform Commission, the Ministry of Science and
Technology of the People’s Republic of China, and the Ministry of Industry and Information Technology of the People’s
Republic of China, and had over 50 papers published by foreign SSCI and SCI journals and domestic journals.
Additionally, her scientific research achievements won the first, second, and third prizes for social science research
achievements from the National Ethnic Affairs Commission of the People’s Republic of China, the third prize for excellent
results from the National Bureau of Statistics, the second prize in the 13th Beijing Outstanding Achievement Award in
Philosophy and Social Science, and the third prize in the Award for Excellent Achievements in Scientific Research in
Institutes of Higher Education of the Ministry of Education (Humanities and Social Science). She is serving as a project
training and evaluation expert at the World Bank, the National Rural Revitalization Administration, and the Head Office
of Agricultural Bank of China, and a reviewer of the National Natural Science Foundation of China. She is also
Independent Director of Chongqing Brewery Co., Ltd., Bank of Guiyang Co., Ltd., and the Company.
Zhang Min: He served as a lecturer, an associate professor, a supervisor of doctors, and Deputy Director of the Department
of Accounting of Renmin Business School at the Renmin University of China, as well as Independent Director of Beijing
SPC Environment Protection Tech Co., Ltd. At present, he is a professor, a supervisor of doctors, and Director of the
Department of Accounting of Renmin Business School at the Renmin University of China. Concurrently, he is
Independent Director of SDIC Capital Co., Ltd., BYD Co., Ltd., and the Company.
Shen Yunqiao: He served as an assistant professor at the Faculty of Law, Macau University of Science and Technology, a
legal adviser for Guangzhou Nansha New Zone and the China (Guangdong) Pilot Free Trade Zone Nansha Area, and
Independent Director of Guangdong Delian Group Co., Ltd. At present, he is an associate professor and a supervisor of
doctors at the Faculty of Law and Director of the Research Centre for Arbitration and Dispute Resolution, Macau
University of Science and Technology. He is also Independent Director of the Company. Concurrently, he is Independent
Director of Shenzhen Utimes Intelligent Equipment Company Limited and Hunan Nucien Pharmaceutical Co., Ltd.,
Director of the Commercial Law Institute of China Law Society and Legislative Council Institute of China Law Society,
an off-campus supervisor of postgraduates and a researcher of the Asia-Pacific Institute of Law, Renmin University of
China, Deputy Director of the Asia-Pacific Arbitration Research Committee of the Asia-Pacific Institute of Law, Renmin
44
CSG Annual Report 2023
University of China, an export of the Expert Pool for Offshore Services of Pazhou Artificial Intelligence and Digital
Economy Law Identification and Commercial Mediation Centre, Haizhu District, Guangzhou, Deputy Secretary General
of the Law Committee of the Council for the Promotion of Guangdong-Hong Kong-Macao Cooperation, a member of the
100-Member Group of the Shandong Foreign Arbitration Service of the Department of Justice, Shandong, Vice Chairman
of Macau Association for Legal Professionals, an arbitrator of the Consumer Mediation and Arbitration Centre, Macao
SAR Government Consumer Council, and Vice Chairman of Renmin University of China Alumni Association of Macao.
Moreover, he is an arbitrator of more than 20 arbitration institutions, including the China International Economic and
Trade Arbitration Commission, Beijing Arbitration Commission, Shanghai International Arbitration Centre, Shanghai
Arbitration Commission, Shenzhen Court of International Arbitration, Guangzhou Arbitration Commission, Zhuhai Court
of International Arbitration, Foshan Arbitration Commission, Hainan International Arbitration Court, Nanjing Arbitration
Commission, Qingdao Arbitration Commission, and Xi’an Arbitration Commission.
Cheng Jinggang: He took the posts of Senior Credit Analyst of the Fixed Income Department of Funde Sino Life Insurance
Co., Ltd. and Senior Manager of the Credit Evaluation Department of Sino Life Asset Management Co., Ltd. At present,
he is Joint Director of the Asset Management Centre of Foresea Life Insurance Co., Ltd. and Director of the Company.
Yao Zhuanghe: He took the posts of Deputy Director of the Department of Food Science and Engineering at South China
University of Technology, Deputy General Manager and General Manager of Guangdong United Food Enterprise Centre,
Director of Guangdong Yuehua International Trade Group, Deputy General Manager of Guangdong Guangye Economic
Development Group, Director and General Manager of Guangdong Guangye Investment Consulting Co., Ltd., Director
and Deputy Party Committee Secretary of Guangdong Guangye Environmental Construction Group (former Guangdong
Guangye Real Estate Group). At present, he is Director of the Company.
Cheng Xibao: She took the posts of Manager, Vice President, and Executive Vice President of the Financial Department
and President Assistant, Vice President, and Senior Vice President of Shenzhen Baoneng Investment Group Co., Ltd.,
Director of Foresea Life Insurance Co., Ltd., Supervisor of Guizhou Baoneng Automobile Co., Ltd., Vice President of
Baoneng Motor Group Co., Ltd., and Executive Vice President of Baoneng City Development and Construction Group
Co., Ltd. At present, she is Senior Vice President of Shenzhen Baoneng Investment Group Co., Ltd., Supervisor of
Xinjiang Qianhai United Property & Casualty Insurance Co., Ltd., and Director of Baoneng Motor Group Co., Ltd., Qoros
Automobile Co., Ltd., Shenzhen Baoneng Travel Co., Ltd., and the Company.
Li Jianghua: He took the posts of Assistant General Manager of the Operation Service Department and Deputy General
Manager of the Public Development Department of the Information Management Centre of Foresea Life Insurance Co.,
Ltd., Deputy General Manager of the IT Department of Xinjiang Qianhai United Property & Casualty Insurance Co., Ltd.,
and General Manager of the Integrated Financial Development Department of the Information Management Centre of
Foresea Life Insurance Co., Ltd. At present, he is Chairman of the Supervisory Committee and Director of the Information
Management Department of the Company.
Meng Lili: At present, she is Deputy Director of the Human Resources Centre, General Manager of the Office of the
Board of Directors and Employee Supervisor of Foresea Life Insurance Co., Ltd., and Supervisor of the Company.
Dai Pingsheng: He took the posts of Financial Manager of Dongguan CSG Solar Glass Co., Ltd., Deputy Manager,
Assistant Director and Deputy Director of the Financial Management Department of CSG, and Vice President of the
Architectural Glass Division of CSG. At present, he is Assistant President, Director of the Strategic Investment
Department, and Employee Supervisor of the Company.
He Jin: He took the posts of General Manager of Shenzhen CSG Float Glass Co., Ltd., Vice President of Float Glass
Division, General Manager of Dongguan CSG Solar Glass Co., Ltd., General Manager of Chengdu CSG Glass Co., Ltd.,
General Manager of Qingyuan CSG Energy Saving New Materials Co., Ltd., Assistant President of the Company and
President of Flat Glass Division, and Vice President of the Company. At present, he is Secretary of the Party Committee,
Acting Chief Executive Officer, Executive Vice President, and Chairman of the Management Committee of the Company.
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CSG Annual Report 2023
Wang Wenxin: She took the posts of Assistant President, Director of the Financial Management Department, and
Executive Vice President of CSG. At present, she is Vice President and Chief Financial Officer of the Company.
Chen Chunyan: She took the posts of Director of the Stock Affairs Department, Stock Affairs Manager, and Assistant
Director of the Office of the Board of Directors of CSG. At present, she is Secretary of the Board of Directors and Director
of the Office of the Board of Directors of the Company.
Post-holding in shareholder’s unit
√Applicable □ Not applicable
Received
remuneration
Start dated of End date of
Name Name of shareholder’s unit Position in shareholder’s unit from
office term office term
shareholder’s
unit or not
Chairman of Supervisory
Chen Lin Foresea Life Insurance Co., Ltd. May 2012 Yes
Board
General Manager August 2018
Shen Chengfang Foresea Life Insurance Co., Ltd. Yes
Executive Director July 2019
Deputy Director of the Asset
April 2012 February 2023
Management Center
Cheng Jinggang Foresea Life Insurance Co., Ltd. Yes
Co-director of the Asset
February 2023
Management Center
Deputy Director of Human
January 2021
Resources Center
General Manager of the
Meng Lili Foresea Life Insurance Co., Ltd. Yes
Office of the Board of July 2019
Directors
Employee Supervisor June 2016
Note of post-holding in shareholder’s unit N/A
Post-holding in other units
√ Applicable □ Not applicable
Receive
Date of Date of
Positions in remuneratio
Name Unit name commencement of termination of
other units n from other
office term office term
units or not
Associate
Renmin University of China March 2010 Yes
Professor
Independent
Chongqing Brewery Co., Ltd. May 2022 Yes
Zhu Director
Qianyu Independent
Kingfa SCI.&TECH. Co., Ltd. January 2021 December 2023 Yes
Director
Independent
Bank of Guiyang Co., Ltd. February 2024 Yes
Director
Renmin University of China Professor June 2010 Yes
Independent
BYD Co., Ltd. September 2020 Yes
Director
Zhang
Independent
Min SDIC Capital Co., Ltd. September 2019 Yes
Director
Beijing SPC Environment Protection Independent
October 2019 May 2023 Yes
Tech Co., Ltd. Director
Macau University of Science and Associate
Shen July 2015 Yes
Technology Professor
Yunqiao
Shenzhen Utimes Intelligent Equipment Independent January 2022 Yes
46
CSG Annual Report 2023
Co.,ltd. Director
Independent
Hunan Nucien Pharmaceutical Co., Ltd. June 2023 Yes
Director
Independent
Guangdong Delian Group Co., Ltd. May 2021 September 2023 Yes
Director
Shenzhen Baoneng Investment Group Senior Vice
November 2020 Yes
Co., Ltd. President
Director December 2017 No
Baoneng Motor Group Co., Ltd.
Cheng Vice President September 2022 June 2023 No
Xibao Xinjiang Qianhai United Property &
Supervisor September 2016 No
Casualty Insurance Co., Ltd.
Qoros Automobile Co., Ltd. Director December 2017 No
Shenzhen Baoneng Travel Co., LTD. Director September 2019 No
Note of post-holding in other units N/A
Punishment of securities regulatory authority in the last three years to the Company’s current and retired directors,
supervisors and senior management during the report period
□ Applicable √ Not applicable
3. Remuneration of directors, supervisors and senior executives
Decision-making procedures, recognition basis and payment for directors, supervisors and senior executives
1. Decision-making procedures: The allowances for independent directors, external directors from non-shareholder’s unit
are planned and proposed by the Remuneration & Assessment Committee of the Board and approved by the Shareholders’
General Meeting after deliberation of the Board. Remuneration for senior executives is proposed by the Remuneration &
Assessment Committee of the Board and decided by the Board after discussion.
2. Confirmation basis of remuneration: The allowances for independent directors and external directors are confirmed
based on industry standards and real situation of the Company. The remuneration for senior executives implements
floating reward mechanism with reference to basic salary and business performance. Bonus for performance rewards is
withdrawal by proportion quarterly according to return on equity and based on the total net profit after taxation.
3. Actual remuneration payment: The allowances for each of the Company’s independent directors, external director from
non-shareholder’s unit are RMB 0.3 million per year, paid by actual month of service. The total remuneration for directors,
supervisor and senior executives in the report period was RMB 18.2805 million.
Remuneration of directors, supervisors and senior executives of the company during the report period
Unit: RMB 0,000
Total Received
remuneration remuneration
Post-holding
Name Sex Age Title obtained from from related
status
the Company party of the
before taxation Company or not
Currently in
Chen Lin Female 52 Chairman of the Board 0 Yes
office
Currently in
Shen Chengfang Male 58 Director 0 Yes
office
Currently in
Zhu Qianyu Female 49 Independent Director 30 No
office
Zhang Min Male 47 Independent Director Currently in 30 No
47
CSG Annual Report 2023
office
Currently in
Shen Yunqiao Male 48 Independent Director 23.75 No
office
Currently in
Cheng Jinggang Male 43 Director 0 Yes
office
Currently in
Yao Zhuanghe Male 65 Director 30 No
office
Currently in
Cheng Xibao Female 42 Director 0 Yes
office
Chairman of the Supervisory Board, Currently in
Li Jianghua Male 47 212.21 No
Employee Supervisor office
Currently in
Meng Lili Female 46 Supervisor 0 Yes
office
Currently in
Dai Pingsheng Male 42 Employee Supervisor 190.68 No
office
Secretary of the Party Committee,Vice Currently in
He Jin Male 52 806.39 No
president，executive vice president office
Currently in
Wang Wenxin Female 46 Vice President, Chief Financial Officer 381.18 No
office
Currently in
Chen Chunyan Female 42 Secretary of the Board 117.59 No
office
Leaving
Zhu Guilong Male 60 Independent Director 6.25 No
office
Total -- -- -- -- 1,828.05 --
Other information note
□ Applicable √ Not applicable
VI. Directors’ performance of duties during the report period
1. Board of directors in the report period
Session Meeting date Date of disclosure Resolution of the meeting
For details, please refer to Juchao Website
The Interim Meeting of
(www.cninfo.com.cn): “Announcement on Resolution
the Ninth Board of February 27, 2023 February 28, 2023
of the Interim Meeting of the Ninth Board of Directors”
Directors
(Announcement No.: 2023-001)
For details, please refer to Juchao Website
The 11th Meeting of the (www.cninfo.com.cn): “Announcement on Resolution
April 24, 2023 April 26, 2023
Ninth Board of Directors of the 11th Meeting of the Ninth Board of Directors”
(Announcement No.: 2023-012)
For details, please refer to Juchao Website
The Interim Meeting of
(www.cninfo.com.cn): “Announcement on Resolution
the Ninth Board of April 24, 2023 April 26, 2023
of the Interim Meeting of the Ninth Board of Directors”
Directors
(Announcement No.: 2023-019)
For details, please refer to Juchao Website
The Interim Meeting of
(www.cninfo.com.cn): “Announcement on Resolution
the Ninth Board of June 5, 2023 June 6, 2023
of the Interim Meeting of the Ninth Board of Directors”
Directors
(Announcement No.: 2023-021)
For details, please refer to Juchao Website
The 12th Meeting of the
August 25, 2023 August 29, 2023 (www.cninfo.com.cn): “Announcement on Resolution
Ninth Board of Directors
of the 12th Meeting of the Ninth Board of Directors”
48
CSG Annual Report 2023
(Announcement No.: 2023-028)
For details, please refer to Juchao Website
The Interim Meeting of
(www.cninfo.com.cn): “Announcement on Resolution
the Ninth Board of August 29, 2023 August 31, 2023
of the Interim Meeting of the Ninth Board of Directors”
Directors
(Announcement No.: 2023-030)
For details, please refer to Juchao Website
The Interim Meeting of
(www.cninfo.com.cn): “Announcement on Resolution
the Ninth Board of September 27, 2023 September 29, 2023
of the Interim Meeting of the Ninth Board of Directors”
Directors
(Announcement No.: 2023-031)
The Interim Meeting of
The Third Quarter Report 2023 was reviewed and
the Ninth Board of October 27, 2023 -
approved
Directors
For details, please refer to Juchao Website
The Interim Meeting of
(www.cninfo.com.cn): “Announcement on Resolution
the Ninth Board of November 13, 2023 November 14, 2023
of the Interim Meeting of the Ninth Board of Directors”
Directors
(Announcement No.: 2023-036)
2. Attendance of directors at the board of directors and shareholders’ meeting
Attendance of directors at the board of directors and shareholders' meeting
Number of Failure to
Number of Number of Number of
board meetings Number of personally attend
Meetings attendances of Number of attendance of
Name of director that should be Spot board meetings
Attended by board meeting absence General
attended in this Attendances successively
Communication by proxy Meeting
report period twice
Chen Lin 9 2 7 0 0 No 4
Shen Chengfang 9 1 8 0 0 No 4
Zhu Qianyu 9 1 8 0 0 No 4
Zhang Min 9 1 8 0 0 No 4
Shen Yunqiao 8 1 7 0 0 No 3
Cheng Jinggang 9 1 8 0 0 No 4
Yao Zhuanghe 9 0 9 0 0 No 4
Cheng Xibao 9 0 9 0 0 No 4
Zhu Guilong 1 0 1 0 0 No 0
Note to failure to attend the board meeting successively twice
Not applicable
3. Objections raised by directors on matters related to the Company
Whether directors raised any objection to the relevant matters of the Company
√ Yes □ No
Name of
the Matter to which the director objected Details of the objection
director
The Work Report of the Board of Directors for 2022, the 2022 A negative vote was cast. For reasons, please
Cheng Annual Report and Summary, the Financial Final Report 2022, the refer to the Announcement on Resolution of the
Xibao Proposal on Profit Distribution for 2022, the Internal Control 11th Meeting of the Ninth Board of Directors
Evaluation Report 2022, and the Proposal on the Development of (Announcement No.: 2023-012) dated April 26,
49
CSG Annual Report 2023
Asset Pool Business in 2023 reviewed at the 11th meeting of the 2023 at http://www.cninfo.com.cn.
Ninth Board of Directors on April 24, 2023.
A negative vote was cast. For reasons, please
refer to the Announcement on Resolution of the
Cheng The First Quarter Report 2023 reviewed at the interim meeting of
Interim Meeting of the Ninth Board of Directors
Xibao the Ninth Board of Directors on April 24, 2023.
(Announcement No.: 2023-019) dated April 26,
2023 at http://www.cninfo.com.cn.
Explanati
ons of the
directors For details, please refer to the announcements disclosed by the Company at http://www.cninfo.com.cn.
for their
objections
4. Other notes to duty performance of directors
Whether the directors’ suggestions on the Company have been adopted
√Yes □ No
Notes to the adoption of or a failure to adopt directors’ suggestions on the Company
During the report period, the current directors of the Company strictly followed the Company Law, Securities Law,
Shenzhen Stock Exchange Listing Rules, Guidelines for Self-discipline and Supervision of Listed Companies No. 1-
Standardized Operation of Listed Companies on the Main Board, Measures for the administration of independent directors
of listed companies and other laws and regulations, as well as the Articles of Association and other relevant systems, to
attend the Board of Directors and General Meeting of Shareholders of the Company, conscientiously perform duties, and
provide comments or suggestions on decisions for the Company’s development. The Company respected and listened to
directors’ comments and suggestions and implemented them according to the final resolutions of the Board of Directors
and the General Meeting of Shareholders.
VII. Duty performance of special committees under the Board of Directors in the report period
Important
Other
Number of comments Specific
Name of the duty
About the members meetings Meeting date Meeting content and objections
Committee perfor
held suggestions (if any)
mance
proposed
The proposals Proposal on
Chairman of the Withdrawing Provisions for Asset
Committee: Chen Lin. Impairment, Proposal on Profit
Committee members:
Strategy Distribution for 2022, Proposal on
Shen Chengfang, 1 April 14, 2023 Approved.
Committee Cheng Jinggang, Shen the Development of Asset Pool
Yunqiao, and Zhu Business in 2023, and Proposal for
Qianyu. the 2023 Guarantee Plan were
reviewed and approved.
Chairman of the The Proposal on the Changes in
committee: Zhang Accounting Policies, the Financial
Min. Final Report 2022, and the
Audit April 14, 2023 Approved.
Committee members: 5 Internal Control Evaluation Report
Committee
Shen Yunqiao, Zhu 2022 were reviewed and
Qianyu, Chen Lin, and approved.
Cheng Xibao. April 21, 2023 Matters on the First Quarter Approved.
50
CSG Annual Report 2023
Report 2023 was reviewed and
approved.
Matters on the Semi-annual
August 15, 2023 Financial Report 2023 was Approved.
reviewed and approved.
Matters on the Third Quarter
October 24,
Report 2023 was reviewed and Approved.
2023
approved.
Matters on the Appointment of the
November 10,
Audit Institution of 2023 was Approved.
2023
reviewed and approved.
Chairman of the
committee: Shen The Matters on Auditing the
Remuneration Yunqiao. Remuneration of Directors,
and Assessment Committee members: 1 April 14, 2023 Supervisors and Senior Executives Approved.
Committee Zhang Min, Zhu of CSG in 2022 was reviewed and
Qianyu, Chen Lin, and approved.
Cheng Jinggang.
Chairman of the
committee: Zhu Matters on the By-election of
Qianyu Independent Director for the Ninth
February 23,
Committee members: Board of Directors of the Approved.
2023
Zhu Guilong, Zhang Company was reviewed and
Min, Chen Lin, and approved.
Nomination Shen Chengfang.
2
Committee Chairman of the
committee: Zhu
Qianyu
The Work of Directors in 2022
Committee members: April 14, 2023 Approved.
was reviewed and approved.
Shen Yunqiao, Zhang
Min, Chen Lin, and
Shen Chengfang.
VIII. Work Summary of the Supervisory Committee
Did the Supervisory Committee find any risk involved in performing the supervision activities in the report period
□ Yes √ No
The Supervisory Committee had no objection to the supervision matters during the report period.
IX. Employees
1. Number, Professional Composition and Education Background of Employees
Number of employees in the parent company (person) 476 note
Number of employees in major subsidiaries of the Company (person) 14,185
Total number of employees (person) 14,661
Total number of employees received salaries in the period (person) 14,661
Number of retired employees whose costs borne by the parent
0
company and its main subsidiaries (person)
Professional composition
Category of profession composition Number of profession composition (person)
Production personnel 9,976
51
CSG Annual Report 2023
Salesman 822
Technician 2,558
Financial personnel 157
Administrative personnel 1,148
Total 14,661
Education background
Category of education background Number (person)
Doctor 5
Master 174
Undergraduate 3,492
Junior college 2,801
Degree below junior college 8,189
Doctor 14,661
Note: Among them, there are 278 employees sent by the headquarters to the subsidiaries.
2. Staff remuneration policy
In 2023, the Company continued to emphasize the principle of “Performance Orientation” in compensation management,
strengthened the application of organizational performance results and individual performance results, and advocated that
salary incentives should be inclined to high-performing organizations and high-performing individuals, to improve the
work enthusiasm of employees, thereby enhancing overall organizational performance and achieving business objectives.
3. Staff training plan
The Company has always attached great importance to the talent team construction and staff training and development.
Within the Group's Human Resources Department, dedicated training modules have been established, and dedicated staff
and funds are earmarked to support the growth and literacy enhancement of employees.
The Company has established training and development systems for employees at different levels, including the
"Navigation Series" designed for management across different tiers and the "Star Plan" aimed at nurturing talent from
campus recruits to elites. Additionally, it has developed personalised training and development programmes for diverse
professionals, with adjustments made to the training plan according to the business plan every year. This approach aims
to stimulate the drive of employees, enhance the competitiveness of the enterprise, and provide a strong guarantee for the
development of CSG Group.
In 2023, in response to the objective of "enhancing refined and specialised management and promoting cost reduction
and efficiency improvement management, supply chain management and lean management to ensure the achievement of
the business and construction targets for 2023" as outlined in the business plan, the Company planned and implemented
the "Lean Production Management" training series. These sessions targeted heads of subsidiaries, heads responsible for
production, and heads of production departments. To ensure widespread influence and implementation, all third-phase
trainees were mandated to participate in the train-the-trainer sessions, resulting in approximately 1,000 participants in
total. This initiative effectively promoted the adoption of lean production across the Group.
In 2024, in addition to the continuation of the "Navigation Series", "Star Plan" and specialised training programmes, the
Company will place particular emphasis on nurturing elites in pivotal roles as well as technical talent. It will also continue
to deepen the scientific and systematic operation of training and development, so as to energise, promote management
and increase benefits, and achieve a win-win situation for the growth of employees and the development of the enterprise.
52
CSG Annual Report 2023
4. Labor outsourcing
□ Applicable √ Not applicable
X. Profit Distribution and Reserve Capitalization
Preparation, implementation or adjustment of the policy for profit distribution, especially the policy for cash dividend
distribution in the report period
√Applicable □ Not applicable
The profit distribution plan for 2022 was approved by Annual General Shareholders’ Meeting of 2022 held on 28 June
2023 which distributed distributing cash dividend of RMB 1.5 (tax included) for every 10 shares to all shareholders.
Notice of the distribution was published on China Securities Journal, Securities Times, Shanghai Securities News,
Securities Daily and Juchao Website (www.cninfo.com.cn)on 7 July 2023, and the profit had been distributed.
Special explanation on cash dividend policy
Satisfy regulations of General Meeting or requirement of Article of Association (Yes/No) Yes
Well-defined and clearly dividend standards and proportion (Yes/No) Yes
Completed relevant decision-making process and mechanism (Yes/No) Yes
Independent directors perform duties completely and play a proper role (Yes/No) Yes
If the company does not pay a cash dividend, it shall disclose the specific reasons and the
N/A
next steps to enhance the return level of investors
Minority shareholders have ample opportunities and their legitimate rights and interests are
Yes
effectively protected (Yes/No)
Condition and procedures are compliance and transparent while the cash bonus policy
N/A
adjusted or changed (Yes/No)
The Company gains profits in the report period and the retained profit of parent company is positive but no plan of cash
dividend proposed
□ Applicable √ Not applicable
Proposal of profit distribution preplan or share conversion from capital public reserve in the report period
√Applicable □ Not applicable
Distributing bonus shares for every 10 shares (share) 0
Distributing cash dividend for every 10 shares (tax included) (RMB) 2.5
Shares added for every 10-share base (Share) 0
Equity base for distribution preplan (share) 3,070,692,107
Total amount distribution in cash (RMB) (tax included) 767,673,027
Cash dividend amount in other ways (such as repurchasing shares) (RMB) 0
Total cash dividends (including other methods) (RMB) 767,673,027
Profit available for distribution (RMB) 3,023,013,128
Cash distributing accounted for the proportion of the total amount of profit
100%
distribution (including other methods)
Particular about cash dividend in the period
If the Company’s development stage is not easy to distinguish but there are major capital expenditure arrangements,
when the profit is distributed, the proportion of cash dividends in this profit distribution should be at least 20%.
Details of proposal of profit distribution or share conversion from capital public reserve
53
CSG Annual Report 2023
According to the financial report audited by Grant Thornton Zhitong Certified Public Accountants LLP , the net profit
attributable to equity holders of the Company in consolidated statement was RMB 1,655,614,446 in 2023, and the net
profit of the parent company’s financial statements was RMB 1,754,292,970.
Since profit distribution bases on the distributable profit of parent company, the Company took 10% of the net profit
as stationary surplus reserve which was RMB 175,429,297 based on the net profit RMB 1,754,292,970 of parent company
statement 2023. The allocation for Shareholders in 2023 was RMB 3,023,013,128.
After comprehensively considering the external macroeconomic situation, the Company's earnings, financial
condition, cash flows, distributable profit, shareholder returns, etc., and also taking into account its own actual operation
and development situation, and accordingly assessing the Company's capital requirements for normal production and
operation, in order to better reward the shareholders and allow all shareholders to share the growth of the Company, the
Company intends to distribute cash dividend of RMB 2.5 (tax included) for every 10 shares to all shareholders based on
3,070,692,107 shares of the total current share capital, and the total distribution amount is RMB 767,673,027 (including
tax). The aforesaid cash dividend amount to be distributed accounts for 46.37% of the net profit attributable to the
Company’s shareholders in the consolidated financial statements in the year. For 2023, no bonus shares will be given, and
no capital stock will be converted from provident fund. Where any change occurs to the Company’s total share capital
during the period from the disclosure date of this profit distribution preplan to the registration date of the implementation
of the equity distribution, the Company intends to maintain the same cash dividend per share and adjust the total
distribution amount accordingly. The actual amount of the cash dividend distributed will be determined according to the
total share capital on the registration date of the Company’s implementation of the profit distribution plan.
The profit distribution plan complies with the “Company Law”, “Listed Company Supervision Guidelines No. 3-Cash
Dividends for Listed Companies” (Revised in 2023), the “Articles of Association”and the Company’s shareholder return
plan, and other relevant regulations. It is in line with the Company’s actual situation and future development plans, as well
as taking into account the interests of shareholders.
The above profit distribution preplan must be reviewed and approved by the 2023 Annual General Meeting of
Shareholders of the Company.
XI. Implementation of the Company’s Equity Incentive Plan, Employee Stock Ownership Plan
or Other Employee Incentive Measures
□ Applicable √ Not applicable
During the report period, the Company had no equity incentive plan, employee stock ownership plan or other employee
incentive measures and the implementation.
XII. Construction and Implementation of the Internal Control System during the Reporting
Period
1. Construction and Implementation of the Internal Control System
During the report period, the Company established a sound and complete internal control management system in
accordance with the requirements of the Company Law, the Securities Law, the Basic Norms for Enterprise Internal
Control and other internal control regulatory rules, oriented by risk management, and operated it effectively. It
strengthened and standardized its internal control which ensured the standardized operation of the Company and improved
the management level and efficiency of the Company, promoting the sustainable development of the Company and
protecting the legitimate rights and interests of investors.
2. Particular case found involving material defects in the internal control during the reporting period
□Yes √No
54
CSG Annual Report 2023
XIII. Management and Control of the Subsidiaries during the Report Period
During the report period, by establishing an effective internal control mechanism and implementing the internal control
management plan, the internal operation supervision of subsidiaries was strengthened; by establishing a sound internal
control system of subsidiaries, the implementation and continuous improvement was promoted; by carrying out process
monitoring and special evaluation, the process risk management of subsidiaries was strengthened; by organizing the
internal control publicity and training of subsidiaries, a good internal control environment was created; by supervising
the key businesses of subsidiaries, the legal compliance, reliability of financial reports, asset safety and operation
efficiency of subsidiaries was reasonable guaranteed.
XIV. Internal Control assessment Report or Internal Control Audit Report.
1. Assessment Report of the Internal Control
Disclosure date of full text of self-
April 26, 2024
appraisal report of internal control
Disclosure index of full text of self- More details found in “Report of Internal Control of CSG for year of 2023”
appraisal report of internal control published on Juchao Website (www.cninfo.com.cn)
The ratio of the total assets of the
units included in the scope of
evaluation to the total assets of the 91%
Company’s consolidated financial
statements
The ratio of the operating income of
the units included in the scope of
evaluation to the operating income of 97%
the Company’s consolidated
financial statements
Standards of Defects Evaluation
Category Financial Reports Non-financial Reports
Major defects: Major defects:
A. Fraud of directors, supervisors and A. Major decision-making mistakes
senior management; caused by decision-making process
B. Ineffective control environment; of key business;
C. Invalid internal supervision; B. Serious violation of state laws
D. Major internal control defects and regulations;
found and reported to the C. Serious brain drain of senior and
management but haven’t been middle management and or
corrected after a reasonable time; personnel at key technological
E. Material misstatements are found posts;
by the external audit but haven’t been D. Major or significant defects
Qualitative criteria found in the process of internal found in the internal control
control; evaluation have not been rectified
F. Financial reports submitted during and reformed;
the reporting period completely E. The company’s major negative
cannot meet the needs and are news frequently appears on media;
severely punished by regulatory Significant defects:
agencies; A. Big deviation of execution caused
G. Other major defects that may by executive routine of key business;
affect the report users’ correct B. Regulatory authorities impose
judgment. large amount of fines because the
Significant defects: violation of laws and regulations;
A. Defects or invalidation of C. Defects or invalidation of
55
CSG Annual Report 2023
important financial control important business’ internal control
procedures; procedures;
B. Significant misstatements are Common defects: Other control
found by the external audit but defects except for major defects and
haven’t been found in the process of significant defects.
internal control;
C. Financial reports submitted during
the reporting period have mistakes
frequently;
D. Other significant defects that may
affect the report users’ correct
judgment.
Common defects: Other control
defects except for major defects and
significant defects.
Major defects:
A. Amount of direct property loss:
Major defects: the direct loss amount is equal to or
A. Amount of net profit affected by greater than 30 million yuan;
misstatements (based on consolidated B. Group’s reputation: major
statements): amount affected by negative news spreads in numerous
misstatements is equal to or greater business areas or is widely reported
than 3% of net profit and the absolute by national media and causes
amount is no less than 30 million significant damages to the corporate
yuan; reputation which takes more than
B. Amount of assets and liabilities six months to be restored.
affected by misstatements (based on Significant defects:
consolidated statements): amount A. Amount of direct property loss:
affected by misstatements is equal to the direct loss amount is equal to or
or greater than 1% of total assets. greater than 20 million yuan but less
Significant defects: than 30 million yuan;
A. Amount of net profit affected by B. Group's reputation: negative
Quantitative standard misstatements (based on consolidated news spreads inside the industry or
statements): not belong to major is reported or focused by local
defects and amount affected by media and causes certain damages
misstatements is equal to or greater to the corporate reputation which
than 2% of net profit and the absolute takes more than three months but
amount is no less than 20 million less than six months to be restored.
yuan; Common defects:
B. Amount of assets and liabilities A. Amount of direct property loss:
affected by misstatements (based on defects except for major and
consolidated statements): amount significant defects.
affected by misstatements is equal to B. Group’s reputation: negative
or greater than 0.5% of total assets news spreads within the group and
but less than 1% of total assets.
causes minor damages to the
Common defects: Defects except for
corporate reputation which takes
major and significant defects.
less than three months to be
restored.
Amount of significant defects in
0
financial reports
Amount of significant defects in
0
non-financial reports
Amount of important defects in
0
financial reports
Amount of important defects in non-
0
financial reports
56
CSG Annual Report 2023
2. Audit report of internal control
√Applicable □ Not applicable
Deliberations in Internal Control Audit Report
According to Guidelines of Enterprise Internal Control Audit and the relevant requirements of CICPA auditing
standards, Grant Thornton Zhitong Certified Public Accountants LLP audited the effectiveness of internal control over
financial statements of the Company up to 31 December 2023, issued GTCNSZ（2024）441A014345 Internal Control
Audit Report and made the following opinions: Grant Thornton Zhitong Certified Public Accountants LLP thought that CSG
Holding Co., Ltd. maintained effective internal control over financial statements in all major aspects according to the
Fundamental Norms of Enterprise Internal Control and relevant rules on December 31, 2023.
Disclosure of internal control audit report Disclosure
Date of disclosing the internal control audit reports April 26, 2024
More details can be found in 2023 Internal Control Audit
Disclosure index of internal control audit report Report of CSG released on Juchao Website
(www.cninfo.com.cn)
Type of the auditor’s opinion Standard unqualified opinion
Whether there are major flaws in the non-financial report
No
or not
Whether the CPAs firm issued an Audit Report on Internal Control with non-standard opinion or not
□Yes √ No
Whether the Audit Report on Internal Control from the CPAs firm is in consistent with the Self-appraisal Report from
the Board or not
√ Yes □ No
XV. Rectification of the Problems Found in the Self-inspection during the Special Campaign to
Improve the Governance of Listed Companies
Not Applicable
57
CSG Annual Report 2023
Section V. Environment and Social Responsibility
I. Major environmental issues
Whether the listed company and its subsidiaries belong to the key pollutant discharge units announced by the
environmental protection department
√ Yes □ No
Environmental protection related policies and industry standards
The Company implemented the Environmental Protection Law of the People’s Republic of China, the Law of the People’s
Republic of China on the Prevention and Control of Air Pollution, the Law of the People’s Republic of China on the
Prevention and Control of Water Pollution, the Law of the People’s Republic of China on the Prevention and Control of
Noise Pollution, the Environmental Protection Tax Law of the People’s Republic of China and other relevant
environmental protection laws and regulations, and implemented the Emission Standard of Air Pollutants for Flat Glass
Industry, the Electronic Glass Working Air Pollutant Emission Standard, the Integrated Emission Standard of Air
Pollutants, the Sewage Integrated Emission Standards, the Environmental Noise Emission Standards at the Boundary of
Industrial Enterprises and other national, industry and local pollutant discharge standards.
Administrative license for environmental protection
The construction projects of each subsidiary carried out environmental impact assessment work and obtain EIA approval
in strict accordance with the requirements of the Environment Impact Assessment Law of the People’s Republic of China
and the Catalogue of Classified Management of Environmental Impact Assessment of Construction Projects. During the
construction of the project, the construction of pollution prevention and control facilities shall be carried out in strict
accordance with the requirements of the project “Three Simultaneous” and put into production and use at the same time
as the main project. During the trial production period, the inspection and acceptance shall be organized in accordance
with the relevant regulations on environmental protection acceptance of the completion of the construction project in
order to ensure that the construction project completes the inspection and acceptance work before it is officially put into
operation.
All subsidiaries have obtained the pollutant discharge permit within the validity period, and regularly submitted the
implementation report of pollutant discharge permit.
Industry emission standards and specific conditions of pollutant emission involved in production and operation activities
Name of
Type of main main Number
Name of Emission
pollutants and pollutants Way of of Exhaust vent Emission standard Approved total Excessive
company or concentration/ Total emission
characteristic and emission exhaust distribution of pollutants emission emission
subsidiary intensity
pollutants characteristi vent
c pollutants
Particulates: Particulates:
Dust ≤30mg/m
Emission Standard 21.174t 93.251t/a
Xianning CSG Continuous/ Production of Air Pollutants for Particulates: Particulates:
Air pollutants Soot 54 ≤25mg/m N/A
Glass Co., Ltd. intermittent plant area Flat Glass Industry 21.174t 93.251t/a
(GB26453-2011)
SO2 ≤200mg/m 241.98t 636.51t/a
58
CSG Annual Report 2023
NOx ≤350mg/m 341.19t 1113.89t/a
Particulates: Particulates:
Dust ≤20mg/m
15.914t 142.114t/a
Emission Standard
Particulates: Particulates:
Chengdu CSG Soot Continuous/ Production ≤20mg/m of Air Pollutants for
Air pollutants 38 15.914t 142.114t/a N/A
Glass Co., Ltd. intermittent plant area Flat Glass Industry
SO2 ≤200mg/m (GB26453-2011) 84.285t 1136.917t/a
NOx ≤350mg/m 409.647t 1989.609t/a
Particulates: Particulates:
Dust ≤10mg/m
9.074t 19.92t/a
Ultra Low Emission
Particulates: Particulates:
Hebei CSG Soot Continuous/ Production ≤10mg/m Standard of Air
Air pollutants 19 Pollutants for Flat 9.074t 19.92t/a N/A
Glass Co., Ltd. intermittent plant area
Glass Industry
SO2 ≤50mg/m 36.9476t 99.63t/a
(DB13/2168-2020)
NOx ≤200mg/m 152.579t 398.55t/a
Emission Standard
of Air Pollutants for
Dust Intermittent 37 30mg/m 8.86t 76.91t
Flat Glass Industry
(GB26453-2011)
Technical
Soot 15mg/m 8.86t 76.91t
Wujiang CSG Production Guidelines for
Air pollutants N/A
Glass Co., Ltd. SO2 plant area 50mg/m Emergency 74.01t 238.28t
Emission Reduction
Continuous 2
in Key Industries in
Heavy Pollution
NOx 200mg/m 408.15t 818.04t
Weather (2020
Revision)
Particulates: Particulates:
Dust ≤20mg/m
8.08t 34.85t/a
Emission Standard Particulates: Particulates:
Dongguan CSG Soot ≤30mg/m of Air Pollutants for
Continuous/ Production 8.08t 34.85t/a
Solar Glass Co., Air pollutants 22 N/A
intermittent plant area Flat Glass Industry
Ltd. SO2 ≤400mg/m 147.9t 300.99t/a
(DB44-2159-2019)
NOx ≤550mg/m 315.58t 535.67t/a
Particulates: Particulates:
Dust ≤30mg/m
Emission Standard 0.603t 16.4225t/a
Particulates: Particulates:
Hebei Panel Soot Continuous/ Production ≤10mg/m of Air Pollutants for
Air pollutants 8 Electronic Glass 0.603t 16.4225t/a N/A
Glass Co., Ltd. intermittent plant area
SO2 ≤50mg/m Industry (GB29495- 1.842t 87.7t/a
2013)
NOx ≤200mg/m 10.67t 105.1t/a
Particulates: Particulates:
Dust ≤20mg/m Emission Standard
1.827t/a 17.656t/a
Xianning CSG of Air Pollutants for
Continuous/i Production Particulates: Particulates:
Photoelectric Air pollutants Soot 6 ≤15mg/m Electronic Glass N/A
ntermittent plant area 1.827t/a 17.656t/a
Glass Co., Ltd. Industry (GB29495-
SO2 ≤10mg/m SO2: 0.22t/a SO2: 65.6t/a
2013)
NOx ≤330mg/m NOx: 56.86t/a NOx: 163.81t/a
Dongguan CSG pH 6~9 Guangdong / /
Water
Architectural Intermittent 1 Sewage vent Province Water N/A
pollutants
Glass Co., Ltd. COD 27mg/L Pollutant Emission 0.72t/a 5.4t/a
59
CSG Annual Report 2023
Ammonia Limit (DB44/26-
0.244mg/L 0.001t/a 0.6t/a
nitrogen 2001)
pH 6~9 / /
Sewage Integrated
Tianjin CSG
Water Emission Standards
Energy-Saving COD Intermittent 2 Sewage vent ≤500mg/L 9.436t 500t/a N/A
pollutants (Level 3 Standard
Glass Co., Ltd.
Ammonia DB12/356-2018)
≤45mg/L 1.291t 45t/a
nitrogen
pH 6~9 / /
Wujiang CSG
Sewage Integrated
East China Water
COD Intermittent 1 Sewage vent ≤500mg/L Emission Standards 17.98t 40.592t/a N/A
Architectural pollutants
Ammonia (GB8978-1996)
Glass Co., Ltd. ≤45mg/L 0.851t 1.00444t/a
nitrogen
Guangdong
Province Water
COD ≤70mg/L Pollutant Emission 1.055t 2.44t/a
Limit (DB44/26-
Water
2001)
pollutants
Pollutant Emission
Sewage
Standard for
Dongguan CSG NOx vent/ ≤30mg/m 2.279t 33.15t/a
Intermittent 20 Battery Industry N/A
PV-tech Co., Ltd. production
(GB30484-2013)
plant area
VOC Emission
Standard for
Furniture
Air pollutants VOCS ≤30mg/m 0.491t 1.93t/a
Manufacturing
Industry
(DB44/814-2010)
COD ≤200mg/L Emission Standards 21.23t 333.7314t/a
Water
of Pollutants for
pollutants pH 6~9 / /
Inorganic Chemical
Sewage
Yichang CSG Industry (GB31573-
NOx vent/ ≤240mg/m 2015), and 0.677t 38.28t/a
Polysilicon Co., Intermittent 8 N/A
production
Ltd. Integrated Emission
Air pollutants plant area
Standard of Air
Particulates ≤120mg/m 5.56t 32.7423t/a
Pollutants
(GB16297-1996)
Treatment of pollutants
All subsidiaries have built pollution prevention and control facilities in accordance with the environmental impact
assessment documents of construction projects and relevant specifications, and adopted air pollution control process such
as electrostatic precipitator + SCR denitrification + semi-dry desulfurization + bag dust removal, ceramic filter cartridge
desulfurization, denitrification and dust removal integration, bag dust removal and water treatment process such as
neutralization + precipitation, fluidized bed, and biological oxidation, for which the technologies used were all in line
with the requirements of the “Guidelines for Feasible Technologies for Pollution Prevention and Control in Glass
Manufacturing Industry” and other documents. In 2023, the pollution control facilities were in good operation and the
pollutants were discharged stably up to the standard. The air pollutant emission concentrations of most of the subsidiaries
were lower than 50% of the emission standard and enjoyed the preferential policy of halving environmental tax. The
pollutant emissions of many subsidiaries reached and implemented local ultra-low emission standards.
Emergency response plan system of environment incident
60
CSG Annual Report 2023
In accordance with the national requirements, all subsidiaries prepared environmental emergency response plans,
organized expert evaluation and filed with the local environmental protection department as required, and conducted the
emergency drill against environmental emergency as planned. No major environmental emergency occurred in 2023.
Environmental self-monitoring scheme
The subsidiaries have built and operated on-line monitoring devices for waste water and exhaust gas in accordance with
national laws and regulations, environmental impact assessment documents of construction projects and the requirements
of their replies, regularly carried out comparison and review of the effectiveness of on-line monitoring facilities, and
entrusted a third-party unit to carry out manual environmental monitoring to comprehensively monitor the pollutant
discharge. The monitoring frequency is implemented in accordance with relevant monitoring technical guidelines or
pollutant discharge permits.
Investment in environmental governance and protection and payment of environmental protection tax
All subsidiaries have built pollution control facilities in accordance with the requirements of environmental impact
assessment, and maintained the stable operation of these facilities to ensure their simultaneous operation with production
equipment. Considerable energy and funds are invested in pollution control every year to ensure the stable discharge of
pollutants up to the standard, and reduce pollution emission as much as possible. Many subsidiaries have reached ultra-
low emission standards. All subsidiaries have made regular emission declarations and paid environmental taxes to the
local tax authorities in full and on time in accordance with the requirements of the Environmental Protection Tax Law.
Measures taken to reduce carbon emissions during the report period and their effects
√ Applicable □Not applicable
The Company has continuously strengthened the comprehensive utilization and management of resources and energy,
actively fulfilled the corporate social responsibility, taken various measures to save energy and reduce carbon emissions,
making our own contributions to the national goal of “Carbon Peaking” and “Carbon Neutrality”. The Group’s Operation
Department has specially established an energy management team, which was responsible for supervising the energy
consumption management of various subsidiaries, and promoted the energy consumption per unit product and carbon
emission per unit product of the Group’s various products to reach the advanced level in the industry. At present, the
energy consumption level of most glass melting furnaces in the flat glass business of CSG has reached the advanced level
stipulated by the national standard. At the same time, CSG has always paid attention to the utilization of waste heat in
flat glass factories. Its first waste heat power plant was put into operation as early as 2009 and each production base has
built waste heat boilers and waste heat power stations; CSG has been actively developing photovoltaic power plants since
2012, most of which have photovoltaic power stations on the roofs of factories. In 2023, CSG’s waste heat power
generation and photovoltaic power generation totalled about 502 million kWh, equivalent to reducing carbon dioxide
emissions by more than 286,300 tons.
Administrative penalties caused by environmental protection issues during the report period
Impact on the
Name of the
Reason for the Particulars of production and Remediation measures
Company or Particulars of the violation
penalty the penalty operation of the of the Company
subsidiary
Company
Chengdu It violated The humidity meter of the No significant Replaced the damaged
A fine of
CSG Glass Article 24, online monitoring impact on humidity meter of the
RMB 20,000
Co., Ltd. Paragraph 1 of equipment was damaged. operations. online monitoring
61
CSG Annual Report 2023
the Law of the The baseline value of the equipment; adjusted the
People's baseline oxygen content in baseline value of the
Republic of fuel gas and the default baseline oxygen content
China on the value of the chimney cross- in fuel gas and the
Prevention and sectional area failed to be chimney cross-sectional
Control of adjusted after the software area according to the
Atmospheric upgrade of the online reality; conducted
Pollution. monitoring equipment. The comparative detection
comparison frequency on reports of particulate
the particulate matter matters in the kilns of
detection reports for the lines 1, 2, and 3 as
kilns of lines 1, 2, and 3 did required; repaired the
not meet the requirements. damaged hose of the
The hose of the peristaltic peristaltic pump of the
pump of the automatic automatic online flue
online fuel gas monitoring gas monitoring
equipment for lines 2 and 3 equipment for lines 2
was damaged. The and 3; ensured as
temperature of the heating required that the
tracer of the online temperature of the
monitoring equipment for heating tracer of the
the exhaust ducts of the online monitoring
kilns of lines 2 and 3 was equipment for the
insufficient. exhaust ducts of the
kilns of lines 2 and 3
reaches 120℃.
Other environmental information that should be disclosed
Nil
Other relevant environmental protection information
Nil
Environmental incidents in the listed company
In 2023, no environmental incidents occurred.
II. Social responsibility
The 2023 Annual Social Responsibilities Report of CSG is the 16th social responsibility report released by the Company
consecutively. Focusing on the year of 2023, the report systemically described the concrete actions of the Company to
actively perform its social responsibilities and its efforts to implement the “Scientific Development Perspective”, build
up a harmonious society, and advance the sustainable development of economy and society. See the full report on
www.cninfo.com.cn.
III. Consolidate and expand the achievements of poverty alleviation and rural revitalization
During the report period, the Company and its subsidiaries actively carried out social welfare and poverty alleviation
activities. For details, see the 2023 Annual Social Responsibilities Report of CSG disclosed on www.cninfo.com.cn.
62
CSG Annual Report 2023
Section VI. Important Events
I. Implementation of commitment
1. Commitments completed by the actual controllers, the shareholders, the related parties, the purchasers,
the Company or the other related parties during the report period and those hadn’t been completed execution
by the end of the report period
√Applicable □ Not applicable
Type of Commitment Commitment Implementati
Commitments Promisee Content of commitments
commitments date term on
Commitments for
Not Applicable
Share Merger Reform
Foresea Life Insurance Co.,
Ltd., Shenzhen Jushenghua Co.,
Ltd. and Chengtai Group Co., By the end of
Ltd. issued detailed report of the report
Commitment equity change on 29 June 2015, During the period, the
Foresea Life of horizontal in which, they undertook to period when above
Insurance Co., Ltd, competition, keep independent from CSG in Foresea Life shareholders
Commitments in report of the
Shenzhen affiliate aspects of personnel, assets, remains the
of acquisition or equity 2015-6-29 Company had
Jushenghua Co., Transaction finance, organization set-up and largest strictly
change
Ltd. and Chengtai and business as long as Foresea Life shareholder carried out
Group Co., Ltd. capital Insurance remained the largest of the their
occupation shareholder of CSG. Company promises.
Meanwhile, they made
commitment on regularizing
related transaction and avoiding
industry competition.
Commitments in assets
Not Applicable
reorganization
Commitments in initial
public offering or re- Not Applicable
financing
Equity incentive
Not Applicable
commitment
Other commitments for
medium and small Not Applicable
shareholders
Other commitments Not Applicable
Completed on
Yes
time(Yes/No)
If the commitments is
not fulfilled on time,
Not applicable
explain the reasons and
the next work plan
Note : Shenzhen Jushenghua Co., Ltd. transferred its 86,633,447 unrestricted tradable A shares of CSG Group to its wholly-owned
sub-subsidiary Zhongshan Runtian Investment Co., Ltd. through agreement transfer on March 16, 2020. Zhongshan Runtian Investment
Co., Ltd. is obliged to continue to fulfill the commitments made by Shenzhen Jushenghua Co., Ltd. As of the end of the report period,
63
CSG Annual Report 2023
the above-mentioned shareholders had strictly fulfilled the relevant commitments.
2. If there are assets or projects of the Company, which has profit forecast and the report period is still in
forecasting period, the Company should explain reasons why they reach the original profit forecast
□ Applicable √ Not applicable
II. Particulars about non-operating fund of listed company which is occupied by controlling
shareholder and its affiliated enterprises
□ Applicable √ Not applicable
III. Illegal external guarantee
□ Applicable √ Not applicable
The Company had no illegal external guarantee during the report period.
IV. Explanation from the Board of Directors for the latest “Non-standard audit report”
□ Applicable √ Not applicable
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 of changes in accounting policies, accounting estimates or correction of
significant accounting errors compared with the financial report of the previous year
√ Applicable □ Not applicable
The content and reason of accounting policy change Approval procedures
In November 2022, the Ministry of Finance issued Interpretation No. 16 of the Accounting
Standards for Business Enterprises (C.K. [2022] No. 31) (hereinafter referred to as
"Interpretation No. 16"). Interpretation No. 16 stipulates that for single transactions that are not
business combinations, that affect neither accounting profit nor taxable income (or deductible
losses) at the time the transaction occurs, and where the initial recognition of assets and liabilities
results in taxable temporary differences and deductible temporary differences of equal amounts
should, in accordance with the No. 18 of the Accounting Standards for Business Enterprises -
On April 24, 2023, the Board of
Income Taxes and other relevant regulations, be recognised as deferred income tax liabilities and
Directors of the Company
deferred income tax assets, respectively, at the time of the transaction. For transactions effected
reviewed and passed the Proposal
between the beginning of the earliest period presented in the financial statements that adhered to
on Accounting Policy Changes.
the said regulations for the first time and the date of implementation of the aforementioned
regulations, enterprises should, in accordance with the said regulations, adjust the cumulative
effect to the opening retained earnings of the earliest period presented in the financial statements
and other related financial statement items. The aforementioned accounting treatment regulations
shall come into force as of January 1, 2023. The Group's implementation of the aforementioned
changes in accounting estimates has no significant impact on the financial statements dated
December 31, 2022 and December 31, 2023 or the financial statements for 2023.
64
CSG Annual Report 2023
VII. Description of changes in consolidation statement’s scope compared with the financial
report of the previous year
√ Applicable □Not applicable
How the equity int Date when the equity inter
Relationship wit The Company’s interes
Name erests were obtaine ests were obtained/the sub
h the Company t (%)
d sidiary was established
Guangdong Licheng Construction En
Subsidiary
gineering Co., Ltd.
Acquired in cash March 21, 2023 100%
Subsidiary Guangxi CSG Mining Co., Ltd. Incorporated April 24, 2023 100%
Subsidiary CSG Japan Co., Ltd. Incorporated April 26, 2023 100%
Subsidiary Wuxuan Nanxin Mining Co., Ltd. Incorporated May 19, 2023 60%
Qinghai CSG Photovoltaic Technolo
Subsidiary
gy Co., Ltd.
Incorporated October 18, 2023 100%
Jiangyou CSG Quartz Sand Co., Lt
Subsidiary
d.
Incorporated December 8, 2023 100%
VIII. Engaging and dismissing of CPA firm
CPA firm engaged
Grant Thornton Zhitong Certified Public Accountants
Name of domestic CPA firm
LLP
Remuneration for domestic CPA firm (RMB 0,000) 270
Continuous life of auditing service for domestic CPA firm 1
Name of domestic CPA Su Yang, Yang Hua
Continuous life of auditing service for domestic CPA Su Yang (1 year), Yang Hua (1 year)
Name of overseas CPA firm (if any) N/A
Continuous life of auditing service for overseas CPA firm (if any) N/A
Name of overseas CPA (if any) N/A
Continuous life of auditing service for overseas CPA (if any) N/A
Whether changed accounting firms in this period or not
√ Yes □No
Whether changed accounting firms during the audit or not
□ Yes √No
Whether changed accounting firms will carry out the approval procedures or not
√ Yes □No
Detailed explanations on the replacement and change of the CPA firm
i. Approval procedures performed
On November 10, 2023, the Audit Committee of the Ninth Board of Directors convened an interim meeting. At the
meeting, the proposal Matters Regarding the Engagement of the Auditor for 2023 was reviewed and approved.
Subsequently, the Proposal on the Engagement of the Auditor for 2023 was approved by the interim meeting of the Ninth
Board of Directors on November 13, 2023 and then by the Third Extraordinary General Shareholders' Meeting of 2023
on November 29, 2023, respectively, consenting to engage Grant Thornton Zhitong Certified Public Accountants LLP as the
Company's auditor for 2023. The auditor shall be responsible for auditing the Company's annual financial reports, internal
65
CSG Annual Report 2023
control, and related services. The term shall be one year. The auditor's fee for 2023 was determined to be RMB 3 million
(unchanged from that of the previous year) through negotiations, adhering to fair and reasonable principles, considering
factors such as the Company's business scale, industry, required audit personnel, workload, and the fee standards of the
CPA firm. This fee included the financial audit fee of RMB 2.7 million and the internal control audit fee of RMB 0.3
million.
ii. Information on the previous CPA firm and the audit opinion for previous year
The Company's former CPA firm, Asia Pacific (Group) CPAs (Special General Partnership), had been serving the
Company for six consecutive years. In the previous year, their audit opinion on the Company's financial report was
Standard and unqualified. There are no instances in which the Company dismisses the previous CPA firm after engaging
it to perform certain audit work.
iii. Reasons for changing the CPA firm
Considering that Asia Pacific (Group) CPAs (Special General Partnership) had been serving the Company for multiple
consecutive years and taking into account the Company's business development and its needs of audit work, the Company
changed the CPA firm, and engaged Grant Thornton Zhitong Certified Public Accountants LLP as its auditor for 2023.
Appointment of internal control auditing accounting firm, financial consultant or sponsor
√ Applicable □ Not applicable
Grant Thornton Zhitong Certified Public Accountants LLP was engaged as audit institute of internal control for the Company
in the report period, and contracted charges was RMB 0.30 million (cost of business trips and accommodation at its own
expense).
IX. Delisting after the disclosure of the annual report
□ Applicable √ Not applicable
X. Issues related to bankruptcy and reorganization
□ Applicable √ Not applicable
There were no bankruptcy or restructuring related matters during the reporting period of the company.
XI. Significant lawsuits and arbitrations
√ Applicable □ Not applicable
Recognised
Amount
as estimated Result and Judgement Date of
Basic information involved Progress Index of disclosure
liabilities or impact execution disclosure
(RMB 0,000)
not
Plaintiff: Zhongshan Announcements on
Runtian Investment The first Company Involved
Co., Ltd. instance 1 October Lawsuits on
Defendant: CSG The first judgment 2022 http://www.cninfo.com.cn
Holding Co., Ltd. instance rejected the (Announcement No.:
Not
Case overview: The judgment had lawsuit request 2022-056)
0 No applicable
plaintiff filed a been passed. of the plaintiff Announcement on the
lawsuit with the The plaintiff Zhongshan Progress of Companies
court to confirm the appealed Note. Runtian 12 August Involving Litigation on
resolutions of the Investment 2023 http://www.cninfo.com.cn
General Meeting of Co., Ltd. (Announcement No.:
Shareholders as 2023-026)
66
CSG Annual Report 2023
invalid. Announcement on the
Progress of Companies
25 August Involving Litigation on
2023 http://www.cninfo.com.cn
(Announcement No.:
2023-027)
Note: As of the date of disclosure of this report, the Company has not received the court's acceptance, response, evidence and related
litigation notices.
XII. Penalty and rectification
□ Applicable √ Not applicable
There were no penalties or rectifications during the report period of the Company.
XIII. Integrity of the Company and its controlling shareholders and actual controllers
√ Applicable □ Not applicable
The Company has no controlling shareholder and actual controller. According to the disclosure requirements, the
Company’s largest shareholder Foresea Life Insurance Co., Ltd., shareholder Zhongshan Runtian Investment Co., Ltd.,
shareholder Chengtai Group Co., Ltd. and Shareholder Shenzhen Guanlong Logistics Co., Ltd. shall disclose the
corresponding information. The details are as follows:
i. Integrity of the Company
During the report period, it did not exist that the Company failed to perform the effective judgment of the court or owed
comparatively large amount of debt which was overdue. The Company’s integrity was good.
ii. The integrity of the Company’s shareholders
1. According to the reply of the Company’s largest shareholder, Foresea Life Insurance Co., Ltd.: As of December 31,
2023, it did not exist that Foresea Life Insurance Co., Ltd. failed to perform the effective judgment of the court or owed
comparatively large amount of debt which was overdue.
2. According to the reply of the shareholder Zhongshan Runtian Investment Co., Ltd., the original content is as follows:
As of December 31, 2023, the cases executed by Zhongshan Runtian Investment Co., Ltd. (hereinafter referred to as
“Zhongshan Runtian”) are as follows:
(1) Due to the case of execution of notarising creditor’s rights documents between Great Wall Guoxing Financial Leasing
Co., Ltd. and 16 companies including Shenzhen Shum Yip Logistics Group Co., Ltd., Shenzhen Baoneng Investment
Group Co., Ltd., Baoneng Real Estate Co., Ltd. and Zhongshan Runtian Investment Co., Ltd., Great Wall Guoxing
Financial Leasing Co., Ltd. applied to the court for compulsory execution. As the guarantor of the debt of RMB 164
million, Zhongshan Runtian was jointly and severally liable for the debt, and its 5.57 million shares of Jonjee High-tech
were used as collateral. According to the Announcement on the Results of Judicial Disposal of Certain Shares of
Shareholder Holding More Than 5% of the Shares disclosed by the Board of Directors of Jonjee High-tech on December
18, 2023, Great Wall Guoxing Financial Leasing Co., Ltd. applied for compulsory execution. 5.57 million shares in Jonjee
High-tech have been disposed of, with a disposal amount of RMB 160,422,600 and a debt joint and several liability
fulfilment amount of RMB 160,422,600.
(2) Due to the case of notarising creditor’s rights documents between Chongqing Xinyu Financial Leasing Co., Ltd. and
the defendants Shenzhen Baoneng Investment Group Co., Ltd., Shenzhen Baoneng Automobile Co., Ltd., and Zhongshan
Runtian, Chongqing Xinyu Financial Leasing Co., Ltd. applied to the court for compulsory execution. As the guarantor
of the debt of RMB260 million, Zhongshan Runtian used its 67.65 million A shares of CSG as collateral. As of June 29,
67
CSG Annual Report 2023
2022, it has disposed of 55,628,900 A shares of CSG, with a total amount of RMB 319,999,300.00. At present, the court
has transferred RMB 301,717,392.44 to the creditor, and Zhongshan Runtian's guarantee liability has been enforced.
(3) Due to the case of notarising creditor’s rights documents between Guangdong Finance Trust Co., Ltd. and Zhongshan
Runtian, Shenzhen Jushenghua Co., Ltd., Shenzhen Baoneng Investment Group Co., Ltd., Baoneng Holdings (China) Co.,
Ltd., and Mr. Yao Zhenhua, Finance Trust applied to the court for compulsory execution. The 26,550,000 shares of Jonjee
High-tech held by Zhongshan Runtian Investment Co., Ltd. have been sold on September 13, 2022, and the amount
credited into the account was RMB 793,755,369.22, which was approximately RMB 90 million different from the debt
amount of RMB 882,199,570.79 submitted to the court by the execution applicant. As a result, the case remained unsettled.
(4) Due to the dispute over the financial loan contract between AVIC Trust Co., Ltd. and Zhongshan Runtian, Zhongshan
Runtian, as the borrower of the debt principal of RMB 1.05 billion, and Hefei Baohui Real Estate Co., Ltd., Hefei Baoneng
Real Estate Development Co., Ltd., Shenzhen Jushenghua Co., Ltd., Shenzhen Shum Yip Logistics Group Co., Ltd.,
Shenzhen Baoneng Investment Group Co., Ltd., Chia Tai (Shenzhen) Development Co., Ltd. and Mr. Yao Zhenhua were
jointly and severally liable for the debt. As of December 31, 2023, it has disposed a total of 11,156,871 shares of Jonjee
High-tech; among them, the first round of freezing of 2,125,605 shares by AVIC Trust Co., Ltd. and the judicial mark of
8,056,410 shares.
(5) Due to the case of execution of notarising creditor’s rights documents between Chongqing International Trust Co.,
Ltd. and Shenzhen Jushenghua Co., Ltd., Zhongshan Runtian, Shenzhen Baoneng Investment Group Co., Ltd. and Mr.
Yao Zhenhua, the court ruled to seal up and freeze the property of RMB 541 million of Jushenghua, Baoneng Group and
Yao Zhenhua, and to freeze the 22 million shares of Jonjee High-tech pledged by Zhongshan Runtian to Chongqing Trust.
At present, Chongqing Trust has applied for compulsory execution. As of February 2, 2023, it has disposed of 21,025,100
shares of Jonjee High-tech, with a total amount of RMB 617,383,579.06.
(6) Due to the case of the loan contract dispute between Zhongshan Runtian and Shanghai Pudong Development Bank
Co., Ltd., the People’s Court of Futian District, Shenzhen has issued an Execution Ruling, ruling that 12 million shares
held by Zhongshan Runtian in “Jonjee High-tech”, the entity subject to enforcement, shall be auctioned off and realised
for the purpose of settling the debt. As the bidder failed to pay the final payment within the prescribed time, according to
the Notification of Sale from the People’s Court of Futian District, Shenzhen issued on February 16, 2023, the aforesaid
12 million shares would be re-auctioned. On March 22, 2023, Shanghai Pudong Development Bank Co., Ltd. disposed
of the 12 million shares held by Zhongshan Runtian in “Jonjee High-tech” by way of a judicial auction. The 12 million
shares have been disposed of for RMB 405,684,000.
Notice of auction was received on December 12, 2023: the Futian Court intended to judicially auction 9 million
unrestricted public shares of Jonjee High-tech held by Zhongshan Runtian on the Judicial Auction Online Platform from
10:00 a.m. on January 16, 2024 to 10:00 a.m. on January 17, 2024 (except for the extension of the time), which has been
suspended due to the supplemental security.
(7) Due to the case of the loan contract dispute between Zhongshan Runtian and Chongqing Trust Inc., Shenzhen
Intermediate People’s Court has issued an execution notification demanding the disposal of 22 million shares held by
Zhongshan Runtian in “Jonjee High-tech” at a realised price. On January 17, 2023, Chongqing Trust disposed of a total
of 5.7 million shares held by Zhongshan Runtian by way of block trading.
(8) Due to the case of the loan contract dispute between Zhongshan Runtian and Bank of Communications Financial
Leasing Co., Ltd., the Intermediate People’s Court of Zhongshan City, Guangdong Province has issued an execution
ruling to auction off 8,329,457 shares held by Zhongshan Runtian in “Jonjee High-tech”. On 11 May 2023, Bank of
Communications Financial Leasing Co., Ltd. disposed of the 8,329,457 shares held by Zhongshan Runtian in “Jonjee
High-tech” by way of a judicial auction. The auction proceeds of RMB 284.27 million, which has been used up to pay
off RMB 202,451,688.15 in this case, RMB 269,851.69 in execution fees, and RMB 50,000 in auxiliary auction fees.
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CSG Annual Report 2023
(9) Due to the case of the loan contract dispute between Zhongshan Runtian and Bohai Trust, the Intermediate People's
Court of Zhongshan City, Guangdong Province has issued an Execution Ruling, ruling the mandatory realisation of 13.7
million shares held by the entity subject to enforcement, Zhongshan Runtian, in "Jonjee High-tech". As of June 6, 2023,
all 13.7 million shares had been disposed of. The court has disbursed a total of RMB 458,173,319.95 to Bohai Trust, with
approximately RMB 10 million outstanding. Bohai Trust has initiated separate legal proceedings at the Shenzhen Court
of International Arbitration to recover the outstanding balance and realise the collateral, and the pledge guarantee amounts
to RMB 35,504,500. Currently, the case is awaiting a court hearing.
(10) Due to the case of the transfer and buy-back contract dispute between Zhongshan Runtian and Shenzhen Qianhai
Dongfang Venture, the Intermediate People's Court of Shenzhen Municipality has issued an Execution Ruling, ruling that
the property of the entities subject to enforcement, including Shenzhen Hualitong, Zhongshan Runtian, Baoneng
Investment and Jushenghua, should be seized, frozen, sequestered, withheld, withdrawn or allocated to the extent of a
total amount of RMB 623,102,565.76 (including RMB 43,513, 215.76 of Zhongshan Runtian Investment Co., Ltd.), as
well as interest on the debt during the period of delayed performance, costs of enforcement applications, and actual
expenses incurred during the enforcement.
(11) Due to the case of the financial loan contract dispute between Bank of Tibet and Lhasa Baochuang and Zhongshan
Runtian, the total enforcement amount stands at RMB 828,970,067.74, with RMB 821,439,159.19 already enforced. In
August 2023, the court issued a Reinstatement of Execution Ruling, which ruled to withhold and freeze the bank deposits
of the entities subject to enforcement in the sum of RMB 50,943,534.03, a total enforcement fee of RMB 118,343.53, as
well as interest, interest on the debt during the period of delayed performance, and case acceptance fee.
(12) Due to the case of the loan contract dispute between Shenzhen Baotai Honghua and Zhongshan Runtian, Hualitong
and Shenzhen Jixiang Service, Shenzhen Baotai Honghua applied for enforcement of RMB 1,205,000,000 and interest.
In another case, asset disposal resulted in the distribution of disposal proceeds of RMB 356,272,071.65.
(13) Due to the case of the equity pledge dispute between Essence Securities and Zhongshan Runtian, the amount of the
litigation is RMB 352,912,928.76. The Intermediate People's Court of Nanchang City has issued a first-instance
judgement, which ruled to reject the litigation request of Essence Securities. In September 2023, Essence Securities filed
another lawsuit with the Futian court in Shenzhen, seeking payment from Zhongshan Runtian for financing funds and
interest. The claim in this case amounts to RMB 128 million. The case is currently undergoing first-instance proceedings.
(14) Due to the three cases of claim transaction disputes between Guangdong Huaxing Bank Co., Ltd. and Jushenghua,
Shum Yip Logistics, Baoneng Investment, Hualitong, and Zhongshan Runtian, judgements have been rendered in the first
instance. In Case No. (2022) Y. 0303 M.C. 19249, Zhongshan Runtian is held jointly and severally liable for settling the
principal of RMB 150,000,000 and associated interest. In Case No. (2022) Y. 0303 M.C. 19248, Zhongshan Runtian
bears the joint and several liability for settling the principal of RMB 300,000,000 and interest of RMB 22,500,000 on the
bonds in question. In Case No. (2022) Y. 0303 M.C. 19250, Zhongshan Runtian is jointly and severally liable for settling
the principal of RMB 200,000,000 and associated interest on the bonds in question. All these cases are currently in the
second instance.
(15) Due to the case of the finance lease contract dispute between Science City (GZ) Financial Leasing Co., Ltd. and
Kunshan JuTron New Energy Technology Co., Ltd., Baoneng Investment, Jushenghua, Baoneng Urban Development,
Taiyuan Baoju Real Estate, Qianhai Huabao Supply Chain, Zhongshan Runtian, and Ping An Securities, Zhongshan
Runtian acts as a guarantor for the debt of RMB 120 million. The first-instance judgement has yet to be rendered.
(16) Due to the case of the corporate bond trading dispute between Guangdong Huaxing Bank Co., Ltd. and Shum Yip
Logistics, Jushenghua, Baoneng New Energy Automobile, Shenzhen Baoneng Automobile, Yao Zhenhua, Baoneng
Investment, Hualitong, and Zhongshan Runtian, Zhongshan Runtian acts as a guarantor for the debt of RMB 450 million.
The case is still at the stage of the first instance.
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CSG Annual Report 2023
(17) Due to the two cases of finance lease contract disputes between Science City (GZ) Financial Leasing Co., Ltd. and
Qoros Automotive, Baoneng Investment, Jushenghua, Baoneng Urban Development, Yao Zhenhua, Taiyuan Baoju Real
Estate, Chongqing Baoneng Supply Chain, Guangzhou Baoneng Culture Entertainment, Qianhai Huabao Supply Chain,
Zhongshan Runtian, and Ping An Securities, the total claim amount is RMB 186 million, and Zhongshan Runtian acts as
the guarantor in the cases. The cases are currently in the first-instance stage.
(18) Due to the case of the finance lease contract dispute between Science City (GZ) Financial Leasing Co., Ltd. and
Shenzhen Baoneng Automobile, Baoneng Investment, Jushenghua, Baoneng Urban Development, Yao Zhenhua, Taiyuan
Baoju Real Estate, Guangzhou Baoneng Culture Entertainment, Qianhai Huabao Supply Chain, Zhongshan Runtian, and
Ping An Securities, Zhongshan Runtian acts as a guarantor for the debt of RMB 210 million. The case is currently in the
first-instance stage.
(19) Due to the case of the finance lease contract dispute between Science City (GZ) Financial Leasing Co., Ltd. and
Shenzhen Hua'ai Industrial Development, Baoneng Investment, Jushenghua, Baoneng Urban Development, Yao Zhenhua,
Taiyuan Baoju Real Estate, Guangzhou Baoneng Culture Entertainment, Qianhai Huabao Supply Chain, Zhongshan
Runtian, and Ping An Securities, Zhongshan Runtian acts as a guarantor for the debt of RMB 20.33 million. The case is
currently in the first-instance stage.
(20) Due to the case of the finance lease contract dispute between Science City (GZ) Financial Leasing Co., Ltd. and
Baoneng Automotive Research and Development, Baoneng Investment, Jushenghua, Baoneng Urban Development, Yao
Zhenhua, Taiyuan Baoju Real Estate, Guangzhou Baoneng Culture Entertainment, Qianhai Huabao Supply Chain,
Zhongshan Runtian, and Ping An Securities, Zhongshan Runtian acts as a guarantor for the debt of RMB 22.38 million.
The case is currently in the first-instance stage.
(21) Due to the two cases of finance lease contract disputes between Science City (GZ) Financial Leasing Co., Ltd. and
Shenzhen Baoneng Automobile, Qoros Automotive, Baoneng Investment, Jushenghua, Baoneng Urban Development,
Zhongshan Runtian, Yao Zhenhua, Tengchong Beihai Wetland, Guangzhou Baoneng Culture Entertainment, Qianhai
Huabao Supply Chain, and Chuangbang Group, the total claim amount is RMB 142 million, and Zhongshan Runtian acts
as the guarantor. The two cases are currently in the first-instance stage.
(22) Due to the case of the finance lease contract dispute between Shandong Tongda Financial Leasing Co. Ltd. and
Shenzhen Baoneng Automobile, Baoneng Investment, Zhongshan Runtian, Wuhu Baoneng Real Estate, Shenzhen
Xinchang Enterprise Management Co., Ltd., and Chuangbang Group, Zhongshan Runtian acts as a guarantor for the debt
of RMB 260 million. The case is currently in the first-instance stage.
(23) Due to the case of the finance lease contract dispute between Shandong Tongda Financial Leasing Co. Ltd. and Shum
Yip Logistics, Baoneng Investment, Baoneng Real Estate, Zhongshan Runtian, Wuhu Baoneng Real Estate, and Shenzhen
Hualitong, Zhongshan Runtian acts as a guarantor for the debt of RMB 160 million. The case is currently in the first-
instance stage.
(24) Due to the two cases of finance lease contract disputes between Science City (GZ) Financial Leasing Co., Ltd. and
Shenzhen Hua'ai Industrial Development, Yao Zhenhua, Guangzhou Baoneng Culture Entertainment, Qianhai Huabao
Supply Chain, Zhongshan Runtian, and Jushenghua, the total claim amount is RMB 122 million, and Zhongshan Runtian
acts as the guarantor. The two cases are currently in the first-instance stage.
As of December 31, 2023, the details of Zhongshan Runtian’s comparatively large amount of debt which was overdue
are as follows:
Serial Financial Loan amount Credit Start date Maturity
Borrower
number institution (RMB 0,000) enhancement plan of loan date of loan
Zhongshan Runtian
Essence
1 Investment Co., 4,239.28 Guarantee+Pledge 2018/12/27 2021/12/26
Securities
Ltd.
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CSG Annual Report 2023
Zhongshan Runtian
2 Investment Co., AVIC Trust 105,000.00 Guarantee+Pledge 2019/9/25 2021/10/31
Ltd.
Total 109,239.28
Note: As of October 31, 2023, related stocks held by Zhongshan Runtian had been liquidated by AVIC Trust through
various channels. However, since it is not the first pledgee, the proceeds from liquidation must be retained for withdrawal
by the first pledgee, Essence Securities. AVIC Trust has withdrawn only part of the funds so far. Due to the large number
of issues and quantities of trust products, the Company is still negotiating with AVIC Trust on the deduction method for
principal and interest, and no solution has been finalised. Therefore, the outstanding loan cannot be adjusted for now.
Once a solution is finalised, further disclosure will be made.
As of December 31, 2023, Mr. Yao Zhenhua’s personal execution cases are as follows:
(1) Due to the case of dispute over notarising creditor’s rights documents between Ping An Trust Co., Ltd. and
Shaoxing Baorui Real Estate Co., Ltd., Baoneng City Co., Ltd., Shenzhen Baoneng Investment Group Co., Ltd.,
Baoneng Real Estate Co., Ltd., Shanghai Kaiyue Investment Co., Ltd. and Mr. Yao Zhenhua, which was applied for
compulsory execution by Ping An Trust, Mr. Yao Zhenhua was jointly and severally liable for the principal and interest
of the debt of RMB 420 million.
(2) Due to the trust loan dispute between the National Trust and Shenzhen Xinao Trading Co., Ltd., Shenzhen Baoneng
Investment Group Co., Ltd., Mr. Yao Zhenhua and others signed relevant guarantee contracts, ordering Shenzhen Xinao
Trading Co., Ltd. to repay the loan principal of RMB 290 million and related interest and lawsuit costs. Shenzhen Baoneng
Investment Group Co., Ltd., Mr. Yao Zhenhua and others were jointly and severally liable for the debt.
(3) Due to the financial borrowing between Zhongrong International Trust Co., Ltd. and Baoneng Automobile Co., Ltd.,
it applied to the Beijing Third Intermediate People’s Court for compulsory execution for notarisation on the matter. Since
Mr. Yao Zhenhua provided a guarantee for this loan business and signed the relevant notarised documents, he was jointly
and severally liable for the debt of RMB 1,048 million.
(4) As Kunlun Trust Co., Ltd. applied to the court for compulsory execution of the notarising creditor’s rights documents
with Shum Yip Logistics Group Co., Ltd., Baoneng Century Co., Ltd., Chia Tai (Shenzhen) Development Co., Ltd.,
Shenzhen Baoneng Investment Group Co., Ltd., Baoneng Holdings (China) Co., Ltd., and Mr. Yao Zhenhua, Mr. Yao
Zhenhua assumed joint and several guarantee liabilities for the debt of RMB 1.31 billion.
(5) Due to the case of notarising creditor’s rights documents between Guangzhou Xinhua City Development Industry
Investment Enterprise (Limited Partnership) and the defendants Shenzhen Baoneng Investment Group Co., Ltd.,
Shenzhen Jushenghua Co., Ltd. and Mr. Yao Zhenhua, Mr. Yao Zhenhua, as the guarantor, signed the relevant notarial
documents and assumed joint and several liabilities for the principal and interest of the creditor’s rights of RMB 600
million.
(6) Due to the dispute over the loan contract between Fuzhou Branch of Xiamen International Bank Co., Ltd. and
Shenzhen Jushenghua Co., Ltd., Fuzhou Branch of Xiamen International Bank Co., Ltd. applied to Shenzhen Intermediate
People’s Court for compulsory execution. Mr. Yao Zhenhua, as the guarantor of the loan principal of RMB 2.16 billion,
signed the corresponding Guarantee Contract and assumed joint and several liabilities for the debt.
(7) Due to the financial loan dispute between Guangdong Finance Trust Co., Ltd. and Zhongshan Runtian, Guangdong
Finance Trust Co., Ltd. applied to Shenzhen Intermediate People’s Court for compulsory execution. Mr. Yao Zhenhua,
as the guarantor of the loan, signed the corresponding Guarantee Contract and was jointly and severally liable for the debt
of RMB 720 million. The 26,550,000 shares of Jonjee High-tech held by Zhongshan Runtian Investment Co., Ltd. have
been realised on September 13, 2022, with a received amount of RMB 793,755,369.22, which is about RMB 90 million
different from the owed amount of RMB 882,199,570.79 submitted to the court by the applicant for execution. Therefore,
the case has not been settled for the time being.
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CSG Annual Report 2023
(8) Due to the financial debt dispute between China Railway Trust Co., Ltd. and Baoneng Automobile Group Co., Ltd.
and Kunming Baojun Real Estate Co., Ltd., it applied to Chengdu Intermediate People’s Court of Sichuan Province for
compulsory execution. As the guarantor of the debt, Mr. Yao Zhenhua signed the corresponding Guarantee Contract and
was jointly and severally liable for the debt of RMB 2,095 million. A settlement agreement has been signed in this case.
(9) Due to the financial debt dispute between China Railway Trust Co., Ltd. and Baoneng Automobile Group Co., Ltd.
and Kunming Jianpeng Real Estate Development Co., Ltd., it applied to Chengdu Intermediate People’s Court of Sichuan
Province for compulsory execution. Mr. Yao Zhenhua, as the guarantor of the debt, signed the corresponding Guarantee
Contract and was jointly and severally liable for the debt of RMB 836 million. A settlement agreement has been signed
in this case and the execution has been terminated.
(10) Due to the case of notarising creditor’s rights documents between Changan International Trust Co., Ltd. and
Shenzhen Baoneng Investment Group Co., Ltd., Wuxi Baoneng Real Estate Co., Ltd., Baoneng Holdings (China) Co.,
Ltd., Shenzhen Jushenghua Co., Ltd., and Mr. Yao Zhenhua, Changan Trust applied for compulsory execution. Mr. Yao
Zhenhua, as the guarantor of the debt, was jointly and severally liable for the debt of RMB 925 million.
(11) Due to the case of notarising creditor’s rights documents between Changan International Trust Co., Ltd. and
Shenzhen Baoneng Investment Group Co., Ltd., Wuxi Baoneng Real Estate Co., Ltd., Baoneng Holdings (China) Co.,
Ltd., Shenzhen Jushenghua Co., Ltd., and Mr. Yao Zhenhua, Changan Trust applied for compulsory execution. Mr. Yao
Zhenhua, as the guarantor of the debt, was jointly and severally liable for the debt of RMB 1,117 million.
(12) Due to the case of notarising creditor’s rights documents between China Minsheng Trust Co., Ltd. and the defendants
Shenzhen Baoneng Investment Group Co., Ltd., Hefei Baohui Real Estate Co., Ltd., Shenzhen Baoneng Enterprise
Management Co., Ltd., Anhui Baoneng Land Co., Ltd., and Mr. Yao Zhenhua, Minsheng Trust applied for compulsory
execution. As the guarantor of the debt, Mr. Yao Zhenhua bore unlimited several and joint liability for the debt of RMB
4,207 million.
(13) Due to the case of notarising creditor’s rights documents between Shanghai Aijian Trust Co., Ltd. and Shenzhen
Shum Yip Logistics Group Co., Ltd., Shenzhen Baoneng Investment Group Co., Ltd., Chia Tai (Shenzhen) Development
Co., Ltd., Hefei Baohui Real Estate Co., Ltd., Hefei Baoneng Real Estate Development Co., Ltd., Shenzhen Jushenghua
Co., Ltd., and Mr. Yao Zhenhua, Aijian Trust applied to the court for compulsory execution. As the guarantor of the debt,
Mr. Yao Zhenhua was jointly and severally liable for the debt of RMB 416 million.
(14) Due to the dispute over the loan contract with Baoneng Automobile Group Co., Ltd., Chongqing International Trust
applied to the court for compulsory execution, and Mr. Yao Zhenhua, as the guarantor of the debt, was jointly and
severally liable for the debt of RMB 2,186 million.
(15) Due to the case of notarising creditor’s rights documents between China Minsheng Trust Co., Ltd. and Shenzhen
Shum Yip Logistics Group Co., Ltd., Shenzhen Baoneng Investment Group Co., Ltd., Shenzhen Jushenghua Co., Ltd.,
and Mr. Yao Zhenhua, Minsheng Trust applied to the court for compulsory execution, and Mr. Yao Zhenhua, as the
guarantor of the debt, was jointly and severally liable for the debt of RMB 496 million.
(16) Due to the case of China Minsheng Trust Co., Ltd., Shenzhen Shum Yip Logistics Group Co., Ltd., Shenzhen
Baoneng Investment Group Co., Ltd., Shenzhen Jushenghua Co., Ltd. and Mr. Yao Zhenhua, Minsheng Trust applied to
the court for compulsory execution, and Mr. Yao Zhenhua, as the guarantor of the debt, was jointly and severally liable
for the debt of RMB 2,238 million.
(17) Due to the financial loan contract dispute between AVIC Trust Co., Ltd. and Shenzhen Lingdao Auto Life Service
Co., Ltd., Shenzhen Baoneng Investment Group Co., Ltd., Shenzhen Jushenghua Co., Ltd., Shenzhen Shum Yip Logistics
Group Co., Ltd., Tengchong Baoneng Real Estate Co., Ltd., Zhejiang Jintian Real Estate Development Co., Ltd.,
Tengchong Beihai Wetland Ecotourism Investment Co., Ltd., and Mr. Yao Zhenhua, AVIC Trust applied to the court for
compulsory execution, and Mr. Yao Zhenhua, as the guarantor of the debt, was jointly and severally liable for the debt of
RMB 984 million.
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CSG Annual Report 2023
(18) Due to the financial loan contract dispute between AVIC Trust Co., Ltd. and Shenzhen Shum Yip Logistics Group
Co., Ltd., Shenzhen Baoneng Investment Group Co., Ltd., Shenzhen Jushenghua Co., Ltd., Baoneng Real Estate Co.,
Ltd., and Wuhu Baoneng Real Estate Co., Ltd., Baoneng City Co., Ltd., Tengchong Beihai Wetland Eco-Tourism
Investment Co., Ltd., and Mr. Yao Zhenhua, AVIC Trust applied to the court for execution. Mr. Yao Zhenhua, as the
guarantor of the debt, was jointly and severally liable for the debt of RMB 549 million (principal, exclusive of interest,
penalty interest, etc.).
(19) Due to the loan contract dispute between Shenzhen Branch of Ping An Bank Co., Ltd. and Shenzhen Shum Yip
Logistics Group Co., Ltd., Shenzhen Jushenghua Co., Ltd., Shenzhen Baoneng Investment Group Co., Ltd., Baoneng
Real Estate Co., Ltd., Shenzhen First Space Operation Management Co., Ltd., Mr. Yao Zhenhua and Baoneng City Co.,
Ltd., Shenzhen Branch applied to the court for execution. Mr. Yao Zhenhua, as the guarantor of the debt, was jointly and
severally liable for the debt of RMB 3,433 million. A settlement has been reached in this case and the execution has been
terminated.
(20) Due to the execution of lawsuit costs of the loan contract dispute between Shenzhen Branch of Ping An Bank Co.,
Ltd. and Baoneng City Co., Ltd., Baoneng Real Estate Co., Ltd., Baoneng Holdings (China) Co., Ltd., Mr. Yao Zhenhua
and Shenzhen Liujin Investment Co., Ltd., the Higher People’s Court of Guangdong Province appointed Shenzhen
Intermediate People’s Court of Guangdong Province to execute the case. Mr. Yao Zhenhua, as the guarantor of the loan
contract dispute, was jointly and severally liable for the lawsuit costs of RMB 13,920,800 arising from the loan contract
dispute. The said lawsuit costs have been transferred and executed.
(21) Due to the loan contract dispute between Shenzhen Branch of Ping An Bank Co., Ltd. and Baoneng City Co., Ltd.,
Baoneng Real Estate Co., Ltd., Baoneng Holdings (China) Co., Ltd., Mr. Yao Zhenhua and Shenzhen Liujin Investment
Co., Ltd., Shenzhen Branch of Ping An Bank Co., Ltd. applied to the court for execution. Mr. Yao Zhenhua, as the
guarantor of the debt, was jointly and severally liable for the debt of RMB 5,562 million. In this case, RMB 3,674 million
was obtained from auction of residential unit, and RMB 2,226 million was repaid to Ping An Bank for debt repayment
after deducting the appropriate taxes and fees.
(22) Due to the case of execution of notarising creditor’s rights documents between Chongqing International Trust Co.,
Ltd. and Shenzhen Jushenghua Co., Ltd., Zhongshan Runtian, Shenzhen Baoneng Investment Group Co., Ltd., and Mr.
Yao Zhenhua, Chongqing International Trust Co., Ltd. Chongqing International Trust Co., Ltd. applied to the court for
execution, and Mr. Yao Zhenhua, as the guarantor of the debt, was jointly and severally liable for the debt of RMB 541
million.
(23) Due to the case that Tibet Bank Co., Ltd. sued Lhasa Baochuang Automobile Sales Co., Ltd., Mr. Yao Zhenhua,
Shenzhen Baoneng Investment Group Co., Ltd., Shenzhen Jushenghua Co., Ltd., and Shenzhen Shum Yip Logistics
Group Co., Ltd. were jointly and severally liable for the lawsuit costs of the loan contract dispute, which was executed
by the Lhasa Intermediate People’s Court of the Tibet Autonomous Region, Mr. Yao Zhenhua, as the guarantor of the
loan contract dispute, was jointly and severally liable for the lawsuit costs of RMB 5.11 million arising from the loan
contract dispute.
(24) Due to the case that Tibet Bank Co., Ltd. sued Lhasa Baochuang Automobile Sales Co., Ltd., Mr. Yao Zhenhua,
Shenzhen Baoneng Investment Group Co., Ltd., Shenzhen Jushenghua Co., Ltd. and Shenzhen Shum Yip Logistics Group
Co., Ltd. were jointly and severally liable for the debts arising from the loan contract dispute and were executed by Lhasa
Intermediate People’s Court of the Tibet Autonomous Region. Mr. Yao Zhenhua, as the guarantor of the loan contract
dispute, bore joint and several guarantee liability for the debt of RMB 829 million arising from the loan contract dispute,
which has been paid off.
(25) Due to the case that Chongqing International Trust Co., Ltd. sued Baoneng Automobile Group Co., Ltd., Nanjing
Baoneng Urban Development Co., Ltd., Shenzhen Baoneng Investment Group Co., Ltd., Baoneng Holdings (China) Co.,
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CSG Annual Report 2023
Ltd. and Yao Zhenhua, as the guarantor of the debt, Mr. Yao Zhenhua was executed by the Chongqing No. 5 Intermediate
People’s Court, and he was jointly and severally liable for the debt of RMB 2,186 million.
Mr. Yao Zhenhua had no debt with comparatively large amount that had not been paid when due.
3. According to the reply of the shareholder Chengtai Group Co., Ltd.: As of December 31, 2023, Chengtai Group Co.,
Ltd. has not received relevant information on share freezing and lawsuit, and it had no debt with comparatively large
amount that had not been paid when due.
4. According to the reply of the shareholder Shenzhen Guanlong Logistics Co., Ltd.: As of December 31, 2023, Shenzhen
Guanlong Logistics Co., Ltd. has not received relevant information on share freezing and lawsuit, and it had no debt with
comparatively large amount that had not been paid when due.
XIV. Major related transaction
1. Related transaction with routine operation concerned
□ Applicable √ Not applicable
2. Related transaction with acquisition of assets or equity, sales of assets or equity concerned
□ Applicable √ Not applicable
3. Related transaction with jointly external investment concerned
□ Applicable √ Not applicable
4. Credits and liabilities with related parties
□ Applicable √ Not applicable
5. Transactions with related financial companies
□ Applicable √ Not applicable
6. Transactions between financial companies controlled by the company and related parties
□ Applicable √ Not applicable
7. Other major related transaction
□ Applicable √ Not applicable
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CSG Annual Report 2023
XV. Significant contracts and their implementation
1. Trusteeship, contracting and leasing
(1) Trusteeship
□ Applicable √ Not applicable
(2) Contract
□ Applicable √ Not applicable
(3) Leasing
□ Applicable √ Not applicable
2. Major guarantees
√ Applicable □ Not applicable
Unit: RMB 0,000
External guarantees of the Company and its subsidiaries (excluding the guarantees for subsidiaries)
Date of
disclosure of Compl Guarante
Counter
related Actual Guarante ete e for
Name of guarantee Guarantee Actual date Collateral guarantee Guaranty
announceme amount of e implem related
object amount of guarantee (if any) circumstan period
nt on guarantee type entatio party or
ce (if any)
guarantee n or not not
amount
Total amount of approved external guarantees Total actual amount of external guarantees during the
0 0
during the report period (A1) report period (A2)
Total amount of approved external guarantees at Total balance of actual external guarantees at the end
0 0
the end of the report period (A3) of the report period (A4)
Guarantees of the Company for its subsidiaries
Date of
disclosure of Compl Guarante
Counter
related Actual Guarante ete e for
Name of guarantee Guarantee Actual date Collateral guarantee Guaranty
announceme amount of e implem related
object amount of guarantee (if any) circumstan period
nt on guarantee type entatio party or
ce (if any)
guarantee n or not not
amount
Xianning CSG Joint
April 25,
Photoelectric Glass Co., 6,000May 26, 2022 2,865 liability None None 1 year No No
2022
Ltd. guarantee
Xianning CSG Joint
April 25, November
Photoelectric Glass Co., 5,000 95 liability None None 1 year No No
2022 25, 2022
Ltd. guarantee
Xianning CSG Joint
April 25, March 9,
Photoelectric Glass Co., 3,500 3,500 liability None None 1 year No No
2022 2023
Ltd. guarantee
75
CSG Annual Report 2023
Joint
Xianning CSG Energy- April 26,
5,000July 10, 2023 4,609 liability None None 1 year No No
Saving Glass Co., Ltd. 2023
guarantee
Joint
Xianning CSG Energy- April 25, March 17,
8,600 1,174 liability None None 5 years No No
Saving Glass Co., Ltd. 2022 2023
guarantee
Joint
Xianning CSG Energy- April 26, December
8,000 0 liability None None 1 year No No
Saving Glass Co., Ltd. 2023 21, 2023
guarantee
Joint
Xianning CSG Energy- April 26,
5,000May 9, 2023 1,500 liability None None 1 year No No
Saving Glass Co., Ltd. 2023
guarantee
Yichang CSG Joint
April 25, March 15,
Photoelectric Glass Co., 1,800 800 liability None None 1 year No No
2022 2023
Ltd. guarantee
Yichang CSG Joint
April 26, October 17,
Photoelectric Glass Co., 600 600 liability None None 1 year No No
2023 2023
Ltd. guarantee
Yichang CSG Joint
April 26, August 14,
Photoelectric Glass Co., 1,200 26 liability None None 1 year No No
2023 2023
Ltd. guarantee
Yichang CSG Joint
April 25, August 16,
Photoelectric Glass Co., 600 0 liability None None 2 years No No
2022 2022
Ltd. guarantee
Yichang CSG Joint
August 10, December
Photoelectric Glass Co., 1,824 1,000 liability None None 1 year Yes No
2021 17, 2021
Ltd. guarantee
Joint
Dongguan CSG PV-tech August 10, November
3,000 2,957 liability None None 1 year Yes No
Co., Ltd. 2021 29, 2021
guarantee
Joint
Hebei Panel Glass Co., April 26,
5,000June 5, 2023 500 liability None None 1 year No No
Ltd. 2023
guarantee
Joint
Hebei Panel Glass Co., April 26, August 9,
5,000 1,248 liability None None 1 year No No
Ltd. 2023 2023
guarantee
Joint
Hebei Panel Glass Co., April 25,
2,500May 16, 2022 0 liability None None 3 years No No
Ltd. 2022
guarantee
Joint
Hebei Panel Glass Co., October 30, December
16,500 10,541 liability None None 5 years No No
Ltd. 2021 17, 2021
guarantee
Joint
Hebei CSG Glass Co., April 26,
3,000May 8, 2023 2,950 liability None None 1 year No No
Ltd. 2023
guarantee
Joint
Hebei CSG Glass Co., April 26,
16,000June 5, 2023 8,093 liability None None 1 year No No
Ltd. 2023
guarantee
Joint
Hebei CSG Glass Co., April 25,
2,500May 16, 2022 0 liability None None 3 years No No
Ltd. 2022
guarantee
Dongguan CSG Joint
June 29, September
Architectural Glass Co., 5,000 0 liability None None 2 years Yes No
2021 13, 2021
Ltd. guarantee
Dongguan CSG Joint
April 26, September
Architectural Glass Co., 5,000 1,000 liability None None 1 year No No
2023 18, 2023
Ltd. guarantee
76
CSG Annual Report 2023
Dongguan CSG Joint
April 25, January 6,
Architectural Glass Co., 10,000 3,143 liability None None 1 year No No
2022 2023
Ltd. guarantee
Joint
Xianning CSG Glass April 26,
7,000July 14, 2023 6,955 liability None None 1 year No No
Co., Ltd. 2023
guarantee
Joint
Xianning CSG Glass April 26, August 16,
5,000 1,238 liability None None 4 years No No
Co., Ltd. 2023 2023
guarantee
Joint
Xianning CSG Glass April 26, November
5,000 0 liability None None 1 year No No
Co., Ltd. 2023 28, 2023
guarantee
Joint
Xianning CSG Glass December March 25,
15,000 10,689 liability None None 7 years No No
Co., Ltd. 25, 2021 2022
guarantee
Joint
Xianning CSG Glass April 26,
50,000June 2, 2023 31,004 liability None None 7 years No No
Co., Ltd. 2023
guarantee
Joint
Xianning CSG Glass April 26,
20,000June 2, 2023 14,814 liability None None 1 year No No
Co., Ltd. 2023
guarantee
Joint
Xianning CSG Glass April 26,
12,000June 9, 2023 5,533 liability None None 5 years No No
Co., Ltd. 2023
guarantee
Joint
Xianning CSG Glass June 29,
20,000July 7, 2021 12,914 liability None None 5 years No No
Co., Ltd. 2021
guarantee
Joint
Chengdu CSG Glass Co., April 26, August 9,
5,000 4,020 liability None None 1 year No No
Ltd. 2023 2023
guarantee
Joint
Chengdu CSG Glass Co., December February 17,
5,000 3,000 liability None None 1 year Yes No
Ltd. 25, 2021 2022
guarantee
Joint
Chengdu CSG Glass Co., April 26, October 7,
2,000 0 liability None None 1 year No No
Ltd. 2023 2023
guarantee
Joint
Chengdu CSG Glass Co., April 26, September
3,000 1,000 liability None None 1 year No No
Ltd. 2023 20, 2023
guarantee
Joint
Chengdu CSG Glass Co., April 25, November
10,000 4,000 liability None None 1 year No No
Ltd. 2022 16, 2022
guarantee
Joint
Chengdu CSG Glass Co., April 25, November
5,000 100 liability None None 1 year No No
Ltd. 2022 25, 2022
guarantee
Joint
Chengdu CSG Glass Co., April 25, November
5,000 1,959 liability None None 3 years No No
Ltd. 2022 25, 2022
guarantee
Sichuan CSG Energy Joint
December April 15,
Conservation Glass Co., 8,000 4,200 liability None None 1 year Yes No
25, 2021 2022
Ltd. guarantee
Sichuan CSG Energy Joint
April 26, September
Conservation Glass Co., 3,000 2,000 liability None None 1 year No No
2023 20, 2023
Ltd. guarantee
Sichuan CSG Energy Joint
April 26, October 7,
Conservation Glass Co., 5,000 3,000 liability None None 1 year No No
2023 2023
Ltd. guarantee
77
CSG Annual Report 2023
Sichuan CSG Energy Joint
April 26, September
Conservation Glass Co., 10,000 3,000 liability None None 1 year No No
2023 19, 2023
Ltd. guarantee
Sichuan CSG Energy Joint
April 26, December
Conservation Glass Co., 5,000 0 liability None None 1 year No No
2023 25, 2023
Ltd. guarantee
Sichuan CSG Energy Joint
April 26,
Conservation Glass Co., 12,000June 19, 2023 5,000 liability None None 1 year No No
2023
Ltd. guarantee
Joint
Wujiang CSG Glass Co., February 19, March 12,
10,000 6,044 liability None None 4 years No No
Ltd. 2021 2021
guarantee
Joint
Wujiang CSG Glass Co., April 25, February 7,
10,000 6,945 liability None None 1 year No No
Ltd. 2022 2023
guarantee
Joint
Wujiang CSG Glass Co., April 25, February 28,
5,000 1,177 liability None None 1 year No No
Ltd. 2022 2023
guarantee
Joint
Wujiang CSG Glass Co., April 25, April 20,
6,000 0 liability None None 1 year No No
Ltd. 2022 2023
guarantee
Joint
Wujiang CSG Glass Co., April 26, August 9,
5,000 0 liability None None 1 year No No
Ltd. 2023 2023
guarantee
CSG (Suzhou) Corporate Joint
April 26, October 8,
Headquarters 15,700 0 liability None None 5 years No No
2023 2023
Management Co., Ltd. guarantee
Wujiang CSG East China Joint
April 25, March 7,
Architectural Glass Co., 3,000 0 liability None None 1 year No No
2022 2023
Ltd. guarantee
Wujiang CSG East China Joint
April 25, February 7,
Architectural Glass Co., 10,000 2,000 liability None None 1 year No No
2022 2023
Ltd. guarantee
Wujiang CSG East China Joint
April 25,
Architectural Glass Co., 12,400May 26, 2022 3,118 liability None None 5 years No No
2022
Ltd. guarantee
Wujiang CSG East China Joint
April 25, April 20,
Architectural Glass Co., 6,000 0 liability None None 1 year No No
2022 2023
Ltd. guarantee
Wujiang CSG East China Joint
April 25, April 23,
Architectural Glass Co., 5,000 1,982 liability None None 1 year No No
2022 2023
Ltd. guarantee
Joint
Dongguan CSG Solar April 26, August 9,
5,000 3,215 liability None None 1 year No No
Glass Co., Ltd. 2023 2023
guarantee
Joint
Dongguan CSG Solar April 25,
4,000July 21, 2022 1,515 liability None None 5 years No No
Glass Co., Ltd. 2022
guarantee
Anhui CSG New Energy Joint
April 26,
Material Technology June 30, 2023 0 liability None None 1 year No No
2023
Co., Ltd. guarantee
Guangxi CSG New Joint
April 26,
Energy Material 33,000June 30, 2023 0 liability None None 1 year No No
2023
Technology Co., Ltd. guarantee
Joint
Zhaoqing CSG Energy- April 26,
June 30, 2023 1,903 liability None None 1 year No No
Saving Glass Co., Ltd. 2023
guarantee
78
CSG Annual Report 2023
Dongguan CSG Joint
April 26,
Photovoltaic Technology June 30, 2023 2,318 liability None None 1 year No No
2023
Co., Ltd. guarantee
Dongguan CSG Joint
April 26,
Architectural Glass Co., June 30, 2023 0 liability None None 1 year No No
2023
Ltd. guarantee
Joint
Dongguan CSG Solar April 26,
June 30, 2023 4,787 liability None None 1 year No No
Glass Co., Ltd. 2023
guarantee
Joint
Dongguan CSG Solar April 25,
8,000June 7, 2022 0 liability None None 1 year Yes No
Glass Co., Ltd. 2022
guarantee
Joint
Dongguan CSG Solar April 25,
9,000May 31, 2022 5,276 liability None None 4 years No No
Glass Co., Ltd. 2022
guarantee
Joint
Dongguan CSG Solar April 25, August 11,
6,000 0 liability None None 1 year Yes No
Glass Co., Ltd. 2022 2022
guarantee
Qingyuan CSG Energy- Joint
April 26, December
Saving New Materials 6,000 0 liability None None 1 year No No
2023 27, 2023
Co., Ltd. guarantee
Qingyuan CSG Energy- Joint
April 25, January 6,
Saving New Materials 10,000 2,098 liability None None 1 year No No
2022 2023
Co., Ltd. guarantee
Qingyuan CSG Energy- Joint
December December 2,
Saving New Materials 5,000 100 liability None None 1 year Yes No
25, 2021 2022
Co., Ltd. guarantee
Qingyuan CSG Energy- Joint
April 25, August 4,
Saving New Materials 37,400 0 liability None None 5 years No No
2022 2022
Co., Ltd. guarantee
Qingyuan CSG Energy- Joint
April 25, April 24,
Saving New Materials 10,000 9,852 liability None None 1 year No No
2022 2023
Co., Ltd. guarantee
Joint
Yichang CSG Display April 25, March 15,
1,800 1,287 liability None None 1 year No No
Co., Ltd. 2022 2023
guarantee
Joint
Yichang CSG Display April 25, February 24,
600 600 liability None None 1 year No No
Co., Ltd. 2022 2023
guarantee
Joint
Yichang CSG Display April 25,
3,000June 24, 2022 2,650 liability None None 1 year No No
Co., Ltd. 2022
guarantee
Joint
Yichang CSG April 26, November
1,000 0 liability None None 1 year No No
Polysilicon Co., Ltd. 2023 28, 2023
guarantee
Joint
Tianjin CSG Energy- April 25, March 9,
3,000 613 liability None None 1 year No No
Saving Glass Co., Ltd. 2022 2023
guarantee
Joint
Tianjin CSG Energy- April 26,
5,000July 10, 2023 2,800 liability None None 1 year No No
Saving Glass Co., Ltd. 2023
guarantee
Joint
Tianjin CSG Energy- April 26, August 11,
3,000 500 liability None None 1 year No No
Saving Glass Co., Ltd. 2023 2023
guarantee
Joint
Tianjin CSG Energy- February 19, March 23,
7,000 4,137 liability None None 4 years No No
Saving Glass Co., Ltd. 2021 2021
guarantee
79
CSG Annual Report 2023
Joint
Tianjin CSG Energy- April 26, August 10,
2,000 1,303 liability None None 1 year No No
Saving Glass Co., Ltd. 2023 2023
guarantee
Anhui CSG New Energy Joint
August 10, October 19,
Material Technology 70,000 45,102 liability None None 6 years No No
2021 2021
Co., Ltd. guarantee
Anhui CSG New Energy Joint
August 10, August 28,
Material Technology 180,000 110,920 liability None None 7 years No No
2021 2021
Co., Ltd. guarantee
Anhui CSG New Energy Joint
April 25,
Material Technology 35,000July 5, 2022 26,000 liability None None 3 years No No
2022
Co., Ltd. guarantee
Anhui CSG New Energy Joint
April 25, February 6,
Material Technology 20,000 7,252 liability None None 3 years No No
2022 2023
Co., Ltd. guarantee
Anhui CSG New Energy Joint
April 26,
Material Technology 30,000May 10, 2023 6,869 liability None None 1 year No No
2023
Co., Ltd. guarantee
Anhui CSG New Energy Joint
December March 30,
Material Technology 50,000 25,795 liability None None 9 years No No
25, 2021 2022
Co., Ltd. guarantee
Anhui CSG New Energy Joint
April 26, August 30,
Material Technology 10,000 0 liability None None 1 year No No
2023 2023
Co., Ltd. guarantee
Anhui CSG Silicon Joint
April 26,
Valley Mingdu Mining 43,379July 6, 2023 39,000 liability None None 10 years No No
2023
Development Co., Ltd. guarantee
Joint
Anhui CSG Quartz June 29, September
9,000 5,696 liability None None 5 years No No
Materials Co., Ltd. 2021 13, 2021
guarantee
Joint
Anhui CSG Quartz April 26,
4,000July 19, 2023 3,000 liability None None 1 year No No
Materials Co., Ltd. 2023
guarantee
Joint
Guangxi CSG Mining April 26,
July 6, 2023 5,000 liability None None 8 years No No
Co., Ltd. 2023
guarantee
27,400
Joint
Guangxi CSG Quartz April 26,
July 6, 2023 5,000 liability None None 8 years No No
Materials Co., Ltd. 2023
guarantee
Joint
Guangxi CSG Mining April 26,
10,000June 7, 2023 0 liability None None 5 years No No
Co., Ltd. 2023
guarantee
Joint
Guangxi CSG Quartz April 26,
10,000June 7, 2023 0 liability None None 5 years No No
Materials Co., Ltd. 2023
guarantee
Guangxi CSG New Joint
April 25,
Energy Materials Tech 30,000April 4, 2023 0 liability None None 3 years No No
2022
Co., Ltd. guarantee
Guangxi CSG New Joint
April 25,
Energy Materials Tech 30,000June 11, 2022 10,450 liability None None 3 years No No
2022
Co., Ltd. guarantee
Guangxi CSG New Joint
April 25,
Energy Materials Tech 50,000July 26, 2022 8,000 liability None None 8 years No No
2022
Co., Ltd. guarantee
Guangxi CSG New Joint
April 25,
Energy Materials Tech 80,000July 26, 2022 28,939 liability None None 8 years No No
2022
Co., Ltd. guarantee
80
CSG Annual Report 2023
Xi'an CSG Energy Joint
April 25, March 27,
Saving Glass Technology 34,400 14,582 liability None None 7 years No No
2022 2023
Co., Ltd. guarantee
Qinghai CSG Risheng Joint
April 26, September
New Energy Technology 150,000 30,000 liability None None 8 years No No
2023 26, 2023
Co., Ltd. guarantee
Qinghai CSG Risheng Joint
April 26, October 31,
New Energy Technology 50,000 35,292 liability None None 7 years No No
2023 2023
Co., Ltd. guarantee
Zhaoqing CSG New Joint
April 25,
Energy Technology Co., 1,530April 6, 2023 1,202.5 liability None None 7 years No No
2022
Ltd. guarantee
Joint
Anhui CSG Photovoltaic April 26, April 27,
10,040 3,595 liability None None 7 years No No
Energy Co., Ltd. 2023 2023
guarantee
Joint
Zhanjiang CSG New April 25, March 28,
1,000 950 liability None None 5 years No No
Energy Co., Ltd. 2022 2023
guarantee
Joint
Zhaoqing CSG Energy- April 25,
5,000May 30, 2022 0 liability None None 3 years No No
Saving Glass Co., Ltd. 2022
guarantee
Joint
Zhaoqing CSG Energy- September September
34,000 22,235 liability None None 5 years No No
Saving Glass Co., Ltd. 22, 2020 25, 2020
guarantee
Dongguan CSG Joint
April 26, August 7,
Architectural Glass Co., 2,403 liability None None 1 year No No
2023 2023
Ltd. guarantee
Joint
Dongguan CSG Solar April 26, August 7,
0 liability None None 1 year No No
Glass Co., Ltd. 2023 2023
guarantee
Joint
Dongguan CSG PV-tech April 26, August 7,
4,735 liability None None 1 year No No
Co., Ltd. 2023 2023
guarantee
Anhui CSG New Energy Joint
April 26, August 7,
Material Technology 392 liability None None 1 year No No
2023 2023
Co., Ltd. guarantee
Joint
Wujiang CSG Glass Co., April 26, August 7,
0 liability None None 1 year No No
Ltd. 2023 2023
guarantee
Joint
Chengdu CSG Glass Co., April 26, August 7,
48,000 0 liability None None 1 year No No
Ltd. 2023 2023
guarantee
Sichuan CSG Energy Joint
April 26, August 7,
Conservation Glass Co., 184 liability None None 1 year No No
2023 2023
Ltd. guarantee
Joint
Yichang CSG April 26, August 7,
6,161 liability None None 1 year No No
Polysilicon Co., Ltd. 2023 2023
guarantee
Joint
Xianning CSG Glass April 26, August 7,
0 liability None None 1 year No No
Co., Ltd. 2023 2023
guarantee
Joint
Xianning CSG Energy- April 26, August 7,
351 liability None None 1 year No No
Saving Glass Co., Ltd. 2023 2023
guarantee
Wujiang CSG East China Joint
April 26, August 7,
Architectural Glass Co., 785 liability None None 1 year No No
2023 2023
Ltd. guarantee
81
CSG Annual Report 2023
Joint
Tianjin CSG Energy- April 26, August 7,
2,263 liability None None 1 year No No
Saving Glass Co., Ltd. 2023 2023
guarantee
Joint
Zhaoqing CSG Energy- April 26, August 7,
2,875 liability None None 1 year No No
Saving Glass Co., Ltd. 2023 2023
guarantee
Total actual amount
Total amount of approved guarantees of guarantees for
for subsidiaries during the report 666,319subsidiaries during 321,979
period (B1) the report period
(B2)
Total balance of
Total amount of approved guarantees actual guarantees for
for subsidiaries at the end of the report 1,561,449subsidiaries at the 671,019
period (B3) end of the report
period (B4)
Guarantees of subsidiaries for their subsidiaries
Date of
disclosure of Compl Guarante
Counter
related Actual Guarante ete e for
Name of guarantee Guarantee Actual date Collateral guarantee Guaranty
announceme amount of e implem related
object amount of guarantee (if any) circumstan period
nt on guarantee type entatio party or
ce (if any)
guarantee n or not not
amount
Total actual amount
Total amount of approved guarantees of guarantees for
for subsidiaries during the report 0 subsidiaries during 0
period (C1) the report period
(C2)
Total balance of
Total amount of approved guarantees actual guarantees for
for subsidiaries at the end of the report 0 subsidiaries at the 0
period (C3) end of the report
period (C4)
Total amount of the Company’s guarantees (i.e., the sum of the first three items)
Total actual amount
Total amount of approved guarantees of guarantees during
666,319 321,979
during the report period (A1+B1+C1) the report period
(A2+B2+C2)
Total actual balance
Total amount of approved guarantees
of guarantees at the
at the end of the report period 1,561,449 671,019
end of the report
(A3+B3+C3)
period (A4+B4+C4)
The proportion of total actual amount of guarantees ((i.e.,
47.76%
A4+B4+C4) in the net assets of the Company
Including:
Balance of guarantees provided for shareholders, actual
0
controllers and its related parties (D)
Balance of debt guarantees provided directly or indirectly for
guaranteed objects with an asset-liability ratio exceeding 70% 7,053
(E)
The amount of guarantees exceeding 50% of the net assets (F) 0
82
CSG Annual Report 2023
Total guarantee amount of the above three items (D+E+F) 7,053
Explanation on guarantee responsibility incurred in the report
period or evidence showing the description of the possible joint
Nil
and several liabilities for repayment for the guarantee contracts
not yet due (if any)
Explanation on providing external guarantees in violation of
Nil
prescribed procedures (if any)
Note: 1. The 2022 Annual General Meeting of the Company reviewed and passed the Proposal for the 2023 Guarantee Plan, and
approved the Company and its subsidiaries to provide guarantees in a total amount of not exceeding RMB 21,832 million (including
the effective and unexpired amount) for the 2023 credit lines from financial institutions to guaranteed entities within the scope of
consolidated statements. Among them, the total amount of guarantees for all guaranteed entities with asset liability ratio of 70% or
above shall not exceed the equivalent amount of RMB 920 million (including the effective and unexpired amount). The Company’s
external guarantees are all provided for subsidiaries within the scope of consolidated statement. As of December 31, 2023, the actual
guarantee balance was RMB 6,710.19 million (of which the actual guarantee balance with liability/asset ratio of 70% or above was
RMB 70.53 million), accounting for 47.76% of the parent company’s net assets of RMB 14,050.8402 million at the end of 2023, and
22.10% of the net assets of RMB 30,362.0573 million. The Company has no overdue guarantee.
2. The Company’s 2022 Annual General Meeting reviewed and passed the Proposal on the Development of Asset Pool Business in
2023. In order to achieve the overall management of the Company’s assets such as bills and letters of credit, the General Meeting of
Shareholders approved the Company and its subsidiaries to conduct asset pool business of no more than RMB 1.6 billion. Under the
premise of controllable risks, various guarantee methods such as maximum pledge, general pledge, deposit certificate pledge, bill
pledge, and margin pledge can be adopted for business development. As of December 31, 2023, the actual pledge amount of the asset
pool business was RMB 1,279.5397 million, and the financing balance was RMB 1,251.4311 million.
Explanation on compound guarantees
Nil
3. Entrust others to manage cash assets
(1)Entrusted Financing
□Applicable √ Not applicable
(2) Entrusted loans
□Applicable √ Not applicable
4. Other material contracts
□Applicable √ Not applicable
XVI. Statement on other important matters
√Applicable □ Not applicable
1. Ultra-short-term financing bills
On May 16, 2022, the Company's 2021 Annual General Meeting reviewed and approved the "Proposal on Application
83
CSG Annual Report 2023
for Registration and Issuance of Medium-Term Notes and Ultra-short-term Financing Bills", which agreed that the
Company would register and issue ultra-short-term financing bills with a registered amount of not more than RMB 1
billion, The Company can issue one or more times within the validity period of the registration according to the actual
capital needs and the capital situation of the inter-bank market. On October 30, 2023, the Dealers Association held the
128th registration meeting in 2023 and decided to accept the registration of ultra-short-term financing notes with a total
amount of RMB 1 billion and a validity period of two years.
2. Medium-term notes
On May 16, 2022, the Company's 2021 Annual General Meeting reviewed and approved the "Proposal on Application
for Registration and Issuance of Medium-term Notes and Ultra-short-term Financing Bills", which agreed that the
Company would register and issue medium-term notes with a registered amount of not more than RMB 2 billion. Actual
capital needs and inter-bank market capital status, can be issued one or more times within the validity period of registration.
On October 30, 2023, the Dealers Association held its 128th registration meeting for 2023 and decided to accept the
registration of medium-term notes with a total value of RMB 2 billion and a validity period of two years.
3.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 reviewed and approved the “Proposal on Extending the Validity Period of the
Shareholders' Meeting for the Public Offering of Corporate Bonds to Qualified Investors”, which 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 June 26, 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 (ZJXK [2019] No. 1140). On March 24, 2020 and March 25, 2020,
the Company issued the first batch of corporate bonds with total amount of RMB 2 billion and valid term of 3 years at
the issuance rate of 6%, and completed the redemption and delisting on March 27, 2023 (the original redemption date for
this bond was March 25, 2023, but due to a statutory rest day, it was postponed to the first trading day thereafter).
4. Public offering of A-share convertible corporate bonds
On 11 July 2022, the Company’s 2nd Extraordinary General Meeting of Shareholders in 2022 reviewed and approved
relevant proposals on the Company's public offering of A-share convertible corporate bonds, and agreed to issue A-share
convertible corporate bonds to raise a total amount not exceed RMB 2,800 million (inclusive), with a term of six years
from the date of issuance. Due to factors such as changes in the capital market and the timing of financing, which resulted
in immature application and issuance conditions, the Company did not make any substantial progress on the public
offering of A-share convertible corporate bonds during the valid period as resolved. As of 11 July 2023, the Company’s
plan for the public offering of A-share convertible corporate bonds expired and automatically lapsed. For further
information, see the Announcement on the Expiry of the Plan for the Public Offering of A-share Convertible Corporate
Bonds (Announcement number: 2023-025) disclosed by the Company on http://www.cninfo.com.cn dated 12 July 2023.
5. The matter of the special fund of RMB 171 million for talent introduction
Regarding the special fund of RMB 171 million for talent introduction, the Company filed an infringement compensation
lawsuit against Zeng Nan and others and Yichang Hongtai Real Estate Co., Ltd. on December 15, 2021, and Shenzhen
Intermediate People's Court officially accepted it on January 28, 2022. The first trial of the case was completed in
Shenzhen Intermediate People's Court on June 21, 2022, and is currently awaiting judgment.
6. Postponed re-election of the Board of Directors and the Supervisory Committee
The term of office of the ninth Board of Directors and Supervisory Committee of the Company expired on 21 May 2023,
and re-election is progressing steadily as of now. According to Articles 96 and 138 of the Articles of Association of CSG
Holding Co., Ltd., if a new director/supervisor is not re-elected in time upon the expiry of the term of office of a
84
CSG Annual Report 2023
director/supervisor, before the re-elected director/supervisor assumes his/her office, the former director/supervisor shall
still perform the duties of a director/supervisor in accordance with the provisions of laws, administrative regulations,
departmental rules and the Articles of Association. Therefore, the members of the ninth Board of Directors and
Supervisory Committee are still performing their duties in a normal manner, and the re-election of the Board of Directors
and the Supervisory Committee would not have any adverse impact on the Company’s operation and governance.
XVII. Significant events of subsidiaries of the Company
□ Applicable √ Not applicable
85
CSG Annual Report 2023
Section VII. 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
Capitaliz
New
Bonus ation of Proportio
Amount Proportion shares Others Subtotal Amount
shares public n
issued
reserve
I. Restricted shares 4,838,249 0.16% -2,794,847 -2,794,847 2,043,402 0.07%
1. State-owned shares
2. State-owned legal
person’s shares
3. Other domestic shares 4,838,249 0.16% -2,794,847 -2,794,847 2,043,402 0.07%
Including: Domestic
legal person’s shares
Domestic natural
4,838,249 0.16% -2,794,847 -2,794,847 2,043,402 0.07%
person’s shares
4. Foreign shares
Including: Foreign
legal person’s shares
Foreign natural
person’s shares
II. Unrestricted shares 3,065,853,858 99.84% 2,794,847 2,794,847 3,068,648,705 99.93%
1. RMB Ordinary shares 1,956,484,798 63.71% 2,794,847 2,794,847 1,959,279,645 63.80%
2. Domestically listed
1,109,369,060 36.13% 1,109,369,060 36.13%
foreign shares
3. Overseas listed
foreign shares
4. Others
III. Total shares 3,070,692,107 100.00% 0 0 3,070,692,107 100.00%
Reason for equity changes
√Applicable □Not applicable
During the report period, China Securities Depository and Clearing Corporation Limited adjusted the locked-up shares of
senior management in accordance with regulations, and the Company’s restricted shares and unrestricted shares changed
accordingly.
Approval on equity changes
□Applicable √Not applicable
86
CSG Annual Report 2023
Transfer of ownership of changes in shares
□Applicable √Not applicable
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
Other information necessary to be disclosed or need to be disclosed under requirement from security regulators
□Applicable √ Not applicable
2. Changes of restricted shares
√Applicable □ Not applicable
Unit: Share
Number of Number of Number of Number of
Shareholders’ restricted shares shares restricted shares restricted Reason for
Released date
name at the beginning increased in shares released at the end of the restriction
of the period the Period in the Period Period
Releasing of executive lockup
Executive lockup
Chen Lin 1,217,299 1,217,299 stocks will be implemented
stocks shares
according to relevant policies.
Releasing of executive lockup
Executive lockup
He Jin 673,200 673,200 stocks will be implemented
stocks shares
according to relevant policies.
Releasing of executive lockup
Executive lockup
Wang Wenxin 115,950 115,950 stocks will be implemented
stocks shares
according to relevant policies.
Releasing of executive lockup
Executive lockup
Chen Chunyan 36,953 36,953 stocks will be implemented
stocks shares
according to relevant policies.
Locked in shares Releasing of director and
after the departure of executive lockup stocks will be
Wang Jian 1,012,000 1,012,000 0
directors and implemented according to
executives relevant policies.
Locked in shares Releasing of supervisor lockup
Gao Changkun 375 375 0after the departure of stocks will be implemented
supervisors according to relevant policies.
Locked in shares Releasing of executive lockup
Lu Wenhui 912,973 912,973 0after the departure of stocks will be implemented
executives according to relevant policies.
Locked in shares Releasing of executive lockup
Yang Xinyu 869,499 869,499 0after the departure of stocks will be implemented
executives according to relevant policies.
total 4,838,249 0 2,794,847 2,043,402 -- --
II. Issuance and listing of Securities
1. Security issued (excluding preferred stock) in the report period
□Applicable √Not applicable
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2. Particulars about changes of total shares and shareholder structure as well as changes of assets and liability
structure
□ Applicable √ Not applicable
3. Existing internal staff shares
□ Applicable √ Not applicable
III. Particulars about shareholder and actual controller of the Company
1. Amount of shareholders of the Company and particulars about shares holding
Unit: Share
Total preference
Total shareholders Total preference shareholders
Total shareholders with
at the end of the with voting rights recovered
shareholders at voting rights
155,443 month before this 150,800 0 at end of the month before 0
the end of the recovered at end
annual report this annual report disclosed
report period of report period
disclosed (if applicable)
(if applicable)
Shareholder with above 5% shares hold or top 10 shareholders (Excluding shares lent through refinancing)
Number of share
Total shares pledged, marked or
Changes in Amount of Amount of
Full name of Nature of Proportion of held at the end frozen
report restricted unrestricted
Shareholders shareholder shares held of report
period shares held shares held Share
period Amount
status
Foresea Life Insurance Domestic non
Co., Ltd. – state-owned legal 15.19% 466,386,874 0 0 466,386,874
HailiNiannian person
Foresea Life Insurance Domestic non
Co., Ltd. – Universal state-owned legal 3.86% 118,425,007 0 0 118,425,007
Insurance Products person
Domestic non
# Shenzhen Sigma
state-owned legal 2.35% 72,303,835 72,303,835 0 72,303,835
C&T Co., Ltd.
person
Domestic non
Foresea Life Insurance
state-owned legal 2.11% 64,765,161 0 0 64,765,161
Co., Ltd. – Own Fund
person
China Galaxy
International Securities Foreign legal
1.34% 41,034,578 -175,400 0 41,034,578
(Hong Kong) Co., person
Limited
China Merchants
Foreign legal
Securities (Hong 1.11% 34,109,837 -3,194,154 0 34,109,837
person
Kong) Limited
Hong Kong Securities Foreign legal
0.85% 26,196,114 4,562,069 0 26,196,114
Clearing Co., Ltd. person
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VANGUARD
EMERGING Foreign legal
0.64% 19,595,573 230,000 0 19,595,573
MARKETS STOCK person
INDEX FUND
Pledged 18,980,000
Domestic non
Zhongshan Runtian
state-owned legal 0.62% 18,983,447 0 0 18,983,447 Marked 18,980,000
Investment Co., Ltd.
person
Frozen 3,447
VANGUARD TOTAL
INTERNATIONAL Foreign legal
0.57% 17,537,213 0 0 17,537,213
STOCK INDEX person
FUND
Strategic investors or general legal
person becomes top 10 shareholders due N/A
to shares issued (if applicable)
As of the end of the report period, among shareholders as listed above, Foresea Life Insurance
Co., Ltd.-HailiNiannian, Foresea Life Insurance Co., Ltd.-Universal Insurance Products,
Foresea Life Insurance Co., Ltd.-Own Fund are all held by Foresea Life Insurance Co., Ltd.
Explanation on associated relationship
Shenzhen Jushenghua Co., Ltd., which holds 51% equity of Foresea Life Insurance Co., Ltd.,
among the aforesaid shareholders
holds 100% equity of Zhongshan Runtian Investment Co.,Ltd and Chengtai Group Co. Ltd.,
through Shenzhen Hualitong Investment Co., Ltd. Chengtai Group Co., Ltd. holds
40,187,904 shares through China Galaxy International Securities (Hong Kong) Co., Limited.
Explanation of the above-mentioned
shareholders involving
N/A
entrusted/entrusted voting rights and
abstention from voting right
Special instructions on the existence of
special repurchase account among the N/A
top 10 shareholders (if any)
Particular about top ten shareholders with unrestricted shares held
Type of shares
Amount of unrestricted shares
Shareholders’ name
held at year-end
Type Amount
Foresea Life Insurance Co., Ltd. – HailiNiannian 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 Sigma C&T Co., Ltd. 72,303,835 RMB ordinary shares 72,303,835
Foresea Life Insurance Co., Ltd. – Own Fund 64,765,161 RMB ordinary shares 64,765,161
China Galaxy International Securities (Hong Kong) Domestically listed
41,034,578 41,034,578
Co., Limited foreign shares
Domestically listed
China Merchants Securities (Hong Kong) Limited 34,109,837 34,109,837
foreign shares
Hong Kong Securities Clearing Co., Ltd. 26,196,114 RMB ordinary shares 26,196,114
VANGUARD EMERGING MARKETS STOCK Domestically listed
19,595,573 19,595,573
INDEX FUND foreign shares
Zhongshan Runtian Investment Co., Ltd. 18,983,447 RMB ordinary shares 18,983,447
VANGUARD TOTAL INTERNATIONAL STOCK Domestically listed
17,537,213 17,537,213
INDEX FUND foreign shares
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As of the end of the report period, among shareholders as listed above, Foresea
Life Insurance Co., Ltd.-HailiNiannian, 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.,
Statement on associated relationship or consistent
which holds 51% equity of Foresea Life Insurance Co., Ltd., holds 100% equity
action among the above shareholders:
of Zhongshan Runtian Investment Co.,Ltd and Chengtai Group Co. Ltd., through
Shenzhen Hualitong Investment Co., Ltd. Chengtai Group Co., Ltd. holds
40,187,904 shares through China Galaxy International Securities (Hong Kong)
Co., Limited.
As of the end of the report period, shareholder Shenzhen Sigma C&T Co., Ltd.
holds 0 shares of the Company through an ordinary account, and 72,303,835
Explanation on shareholders involving margin
shares of the Company through the customer credit transaction guarantee
business (if applicable)
securities account of Huatai Securities Co., Ltd., totaling 72,303,835 shares of
the Company.
Special note: On July 11, 2022, at the Company's Second Extraordinary General Meeting in 2022, Foresea Life Insurance
Co., Ltd. voted in favor of all proposals, and Zhongshan Runtian Investment Co., Ltd. voted against all proposals,
Chengtai Group Co., Ltd. voted against all the proposals with the shares held by China Galaxy International Securities
(Hong Kong) Co., Limited; on August 3, 2022, at the Company's Third Extraordinary General Meeting in 2022, Foresea
Life Insurance Co., Ltd. voted in favor of all proposals, and Zhongshan Runtian Investment Co., Ltd. voted against all
proposals.
Top 10 shareholders involved in refinancing shares lending
□ Applicable √ Not applicable
Changes in top 10 shareholders compared with the prior period
√ Applicable □ Not applicable
Unit: share
Changes in top 10 shareholders compared with the end of the prior period
Shares in the ordinary account and
Newly added to or Shares lent in refinancing and not yet credit account plus shares lent in
exiting from top returned at the period-end refinancing and not yet returned at
Full name of shareholder the period-end
10 shareholders in
the report period As % of total share As % of total
Total shares Total shares
capital share capital
#Shenzhen Sigma C&T Co.,
Newly added 0 0.00% 72,303,835 2.35%
Ltd.
Vanguard Total International
Newly added 0 0.00% 17,537,213 0.57%
Stock Index Fund
China Life Insurance Co.,
Ltd. - Traditional - General
Exiting 0 0.00% 0 0.00%
Insurance Products - 005L-
CT001 Shen
#He Xinhai Exiting 0 0.00% 0 0.00%
Whether the company’s top 10 common shareholders and the top 10 shareholders of ordinary shares subject to unlimited
sales have agreed to buy back transactions during the report period
□Yes √ No
The top 10 shareholders of ordinary shares and the top 10 shareholders of ordinary shares with unrestricted sales
conditions did not engage in any agreed repurchase transactions during the reporting period.
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2. Controlling shareholder of the Company
The nature of controlling shareholders: No holding body
The type of controlling shareholder: Not exist
Explanation on the Company without controlling shareholder
Currently the Company has no controlling shareholder. Foresea Life Insurance Co., Ltd. is the Company's largest
shareholder that has totally held 657,577,954 shares of the Company via Foresea Life Insurance Co., Ltd.–HailiNiannian,
Foresea Life Insurance Co., Ltd.–universal insurance products, Foresea Life Insurance Co., Ltd.–own fund, Foresea Life
Insurance Co., Ltd.–a combination of its own funds together with Huatai till the end of the report period, which accounts
for 21.41% of the Company’s total shares. Shenzhen Jushenghua Co., Ltd., with a 51% interest in the Company’s
shareholder Foresea Life Insurance Co., Ltd., holds a 51% interest in the Company’s shareholder Shenzhen Guanlong
Logistics Co., Ltd. via Shenzhen Hualitong Investment Co., Ltd., in addition to the holding of 100% equity interests in
the Company’s shareholders Zhongshan Runtian Investment Co., Ltd. and Chengtai Group Co., Ltd. And, Zhongshan
Runtian Investment Co., Ltd. Chengtai Group Co., Ltd., Shenzhen Guanlong Logistics Co., Ltd., and Foresea Life
Insurance Co., Ltd. combined hold 728,430,489 shares in the Company, accounting for 23.72% of the Company’s total
shares, which is less than 30%. Meanwhile, the number of directors recommended by the aforesaid shareholders was no
more than half of the total number of members of the Company’s Board of Directors.
Other shareholders of the Company hold less than 5% of the shares.
Changes of controlling shareholders in the report period
□ Applicable √ Not applicable
3. Actual controller of the Company and its concerted actors
The nature of actual controller: no actual controller
The type of actual controller: Not exist
Explanation on the Company without actual controller
Currently the Company has no actual controller. Foresea Life Insurance Co., Ltd. is the Company's largest shareholder
that has totally held 657,577,954 shares of the Company via Foresea Life Insurance Co., Ltd.–HailiNiannian, Foresea
Life Insurance Co., Ltd.–universal insurance products, Foresea Life Insurance Co., Ltd.–own fund, Foresea Life Insurance
Co., Ltd.–a combination of its own funds together with Huatai till the end of the report period, which accounts for 21.41%
of the Company’s total shares. Shenzhen Jushenghua Co., Ltd., with a 51% interest in the Company’s shareholder Foresea
Life Insurance Co., Ltd., holds a 51% interest in the Company’s shareholder Shenzhen Guanlong Logistics Co., Ltd. via
Shenzhen Hualitong Investment Co., Ltd., in addition to the holding of 100% equity interests in the Company’s
shareholders Zhongshan Runtian Investment Co., Ltd. and Chengtai Group Co., Ltd. And, Zhongshan Runtian Investment
Co., Ltd. Chengtai Group Co., Ltd., Shenzhen Guanlong Logistics Co., Ltd., and Foresea Life Insurance Co., Ltd.
combined hold 728,430,489 shares in the Company, accounting for 23.72% of the Company’s total shares, which is less
than 30%. Meanwhile, the number of directors recommended by the aforesaid shareholders was no more than half of the
total number of members of the Company’s Board of Directors.
Shareholders with over 10% shares held in ultimate controlling level
√Yes □No
□ Legal person √ Natural person
Shares held in ultimate controlling level
Shareholders Nationality Whether to obtain the right of abode in
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other countries or regions
Yao Zhenhua China No
Major occupations and duties Chairman of Shenzhen Baoneng Investment Group Co., Ltd.
Situation of holding domestic and abroad
N/A
listed companies over the past 10 years
Changes of actual controller in the report period
□ Applicable √ Not applicable
Property right and controlling relationship between the largest shareholder and the Company is as follow:
Actual controller controlling of the Company by entrust or other assets management
□Applicable √Not applicable
4. The company's controlling shareholder or the largest shareholder and its concerted actor’s cumulative
pledged shares account for 80% of the company's shares held by them
□ Applicable √ Not applicable
5. Particulars about other legal person shareholders holding over 10% of the company's shares
□ Applicable √ Not applicable
6. Limitation on share reduction of controlling shareholders, actual controllers, recombination party and
other commitment subjects
□ Applicable √ Not applicable
IV. Specific implementation of share repurchase in the report period
Implementation progress of share repurchase
□ Applicable √ Not applicable
Implementation progress of reducing share repurchased by centralized bidding
□ Applicable √ Not applicable
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Section VIII. Preferred shares
□Applicable √ Not applicable
There were no preferred shares in the Company during the report period.
Section IX. Bonds
□Applicable √ Not applicable
On the approval date of this report, the Company does not have any existing bonds.
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Section X. Financial Report
I. Report of the Auditors
Type of Auditor’s Opinion Standard and unqualified
Issue date of Report of the Auditors April 24, 2024
Name of Auditor’s organization Grant Thornton Zhitong Certified Public Accountants LLP
Reference number of Report of the Auditors GTCNSZ（2024）NO.441A014347
Name of CPA Su Yang, Yang Hua
Auditor’s Report
To the shareholders of CSG HOLDING CO., LTD.
I. Opinion
We have audited the financial statements of CSG Holding Co., Ltd. (hereinafter referred to as
"the Group"), which comprise the consolidated and company balance sheets as of December 31, 2023,
and the consolidated and company statements of profit or loss, consolidated and company statements
of cash flows, consolidated and company statements of changes in equity, and related notes to the
financial statements for the year then ended.
In our opinion, the accompanying financial statements present fairly, in all material respects, the
consolidated and company financial position of the Group as of December 31, 2023, and the
consolidated and company financial performance and cash flows for the year then ended in
accordance with the Chinese Accounting Standards for Business Enterprises (ASBE).
II. Basis of Opinion
We conducted our audit in accordance with the Chinese Standards on Auditing as applicable
in China. Our responsibilities under those standards are further described in the Auditor’s
Responsibilities for the Audit of the Financial Statements section of our report. We are
independent of the Group in accordance with the Code of Ethics for Professional Accountants in
China and have fulfilled our other ethical responsibilities in accordance with these requirements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our opinion.
III. Key audit matters
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Key audit matters are those matters that, in our professional judgment, are of the most
significance in our audit of the financial statements for the current period. These matters were
addressed in the context of our audit of the financial statements as a whole, and in forming our
opinion thereon, we do not provide a separate opinion on these matters.
(A)Revenue recognition
For detailed disclosures, please refer to Note of the financial statements.
1. Matter Description
The Group's sales revenue primarily comes from providing float glass, photovoltaic glass
architectural glass, solar industry-related products, electronic glass, and display devices to
customers. In the fiscal year 2023, the Group achieved operating revenue of 18,194.86 million
yuan. Since revenue is one of the Group's key performance indicators and has a crucial impact on
the financial statements, we identified revenue recognition as a key audit matter.
2. Audit response
We performed the following audit procedures mainly related to revenue recognition:
(1) Understanding and evaluating the design of internal controls related to revenue
recognition, and testing the effectiveness of key control processes.
(2) Sampling inspection of significant sales contracts to identify contract terms and
conditions related to the control transfer point, and assess whether the specific method of revenue
recognition by the Group complies with the Chinese Accounting Standards for Business
Enterprises (ASBE).
(3) Substantive analytical procedures on operating revenue and gross profit margins by
month, product, customer, etc., to identify significant or abnormal fluctuations and analyze the
reasons for the fluctuations.
(4) Selecting samples and performing detailed testing on sales revenue for the current period,
reviewing sales contracts, verifying supporting documents related to revenue recognition
(including orders, delivery notes, customs declarations, invoices, etc.), and confirming the
authenticity and accuracy of revenue in conjunction with customer sales receipts.
(5) Employing sampling to select customers and performing circularization procedures on
their annual transaction amounts and accounts receivable balances.
(6) Conducting cutoff tests on revenue recognized before and after the balance sheet date,
obtaining relevant supporting documents, verifying key timing points of revenue recognition, to
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ascertain whether revenue is recognized in the appropriate period.
(7) Checking whether revenue-related information has been appropriately presented and
disclosed in the financial statements.
(B) Provision for Impairment of Fixed Assets
For detailed disclosures, please refer to Note of the financial statements.
1.Matter Description
As of December 31, 2023, the book value of fixed assets in the consolidated financial
statements of the Group amounted to 13,145.56 million yuan, accounting for 43.30% of the total
assets in the consolidated financial statements, which is the largest component of the consolidated
financial statement assets; the impairment loss provided for fixed assets during the reporting
period amounted to 251.24 million yuan. The management of the Group (hereinafter referred to
as "the management") assessed whether there were indicators of impairment for these fixed assets.
For the fixed assets identified with indicators of impairment, the management estimated the
recoverable amount of the fixed assets and compared it with the carrying amount to confirm the
amount of impairment provision to be recognized. As the identification of indicators of fixed
asset impairment and the measurement of recoverable amount involve significant accounting
estimates and professional judgment by management, we identified the provision for impairment
of fixed assets as a key audit matter.
2. Audit response
We performed the following audit procedures mainly related to the provision for impairment
of fixed assets:
(1) Understanding and evaluating the design of internal controls related to fixed asset
management, and testing the effectiveness of key control processes.
(2) Reviewing the methods and assumptions used by the Group for impairment testing of
fixed assets, and evaluating whether the impairment methods employed by management comply
with the requirements of the Chinese Accounting Standards for Business Enterprises (ASBE).
(3) Physically inspecting fixed assets and observing their usage and storage conditions.
(4) Recalculating the recoverable amount of fixed assets and reviewing the evaluation
methods and key assumptions adopted by the external assessment institution hired by
management, conducted by assessment experts appointed by registered accountants.
(5) Evaluating the competence, professionalism, and objectivity of the assessment experts
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CSG Annual Report 2023
appointed by management and the assessment experts appointed by registered accountants.
4. Other Matters
The management of CSG Holding Co., Ltd. is responsible for other information. Other
information includes the information covered in the 2023 annual report of CSG Holding Co., Ltd.,
but excludes the financial statements and our audit report.
Our audit opinion on the financial statements does not cover other information, and we do
not provide any form of assurance conclusion on other information.
In conjunction with our audit of the financial statements, our responsibility is to read the
other information and, in doing so, consider whether the other information is materially
inconsistent with the financial statements or our knowledge obtained duri ng the audit process or
appears to be materially misstated.
If we determine, based on the work we have performed, that other information is materially
misstated, we should report that fact. We have nothing to report in this regard.
5. Responsibility of management and those charged with governance for financial
statements
The management of CSG Holding Co., Ltd. is responsible for preparing the financial
statements in accordance with the Chinese Accounting Standards for Business Enterprises (ASBE)
to achieve fair presentation and for designing, implementing, and maintaining internal control
necessary to ensure that the financial statements are free from material misstatement due to fraud
or error.
In preparing the financial statements, management is responsible for assessing the Group's
ability to continue as a going concern, disclosing matters related to going concern, and using the
going concern assumption, unless management intends to liquidate the Group, cease operations,
or have no other realistic option.
The governance is responsible for overseeing the financial reporting process of CSG Holding
Co., Ltd..
6. Responsibility of certified public accountants for auditing financial statements
Our objective is to obtain reasonable assurance about whether the financial statements as a
whole are free from material misstatement due to fraud or error and to issue an audit report that
includes our audit opinion. Reasonable assurance is a high level of assurance, but it is not a
guarantee that an audit conducted in accordance with auditing standards will always detect a
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CSG Annual Report 2023
material misstatement when it exists. Misstatements can result from fraud or error, and the risk
of not detecting a material misstatement due to fraud is higher than the risk of not detecting a
material misstatement due to error.
In the process of performing audit work in accordance with auditing standards, we exercise
professional judgment and maintain professional skepticism. At the same time, we also perform
the following tasks:
(1) Identify and assess the risk of material misstatement of the financial statements due to
fraud or error, design and implement audit procedures to address these risks, and obtain sufficient
and appropriate audit evidence as a basis for issuing the audit opinion. Since fraud m ay involve
collusion, forgery, intentional omissions, misrepresentations, or override of internal controls, the
risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting
a material misstatement due to error.
(2) Understand internal controls related to the audit and design appropriate audit procedures
accordingly.
(3) Evaluate the appropriateness of management's selection of accounting policies and the
reasonableness of accounting estimates and related disclosures.
(4) Conclude on the appropriateness of management's use of the going concern assumption.
At the same time, based on the audit evidence obtained, conclude whether there is a significant
uncertainty that may cast significant doubt on the Group's ability to continue as a going concern.
If we conclude that there is a significant uncertainty, auditing standards require us to draw
attention in the audit report to the related disclosures in the financial statements; if the disclosures
are inadequate, we should issue a modified audit opinion. Our conclusion is based on information
available as of the date of the audit report. However, future events or circumstances may cause
the Group to be unable to continue as a going concern.
(5) Evaluate the overall presentation, structure, and content of the financial statements and
assess whether the financial statements reflect the transactions and events relevant to them fairly.
(6) Obtain sufficient and appropriate audit evidence regarding the financial information of
entities or business activities within the CSG Holding Co., Ltd. in order to issue an audit opinion.
We are responsible for directing, supervising, and executing the group audit, and we bear full
responsibility for the audit opinion.
We communicate with governance regarding matters such as the planned scope of the audit,
timing of the audit, and significant audit findings, including significant internal control
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CSG Annual Report 2023
deficiencies identified during the audit.
We also provide a statement to governance regarding compliance with professional ethical
requirements related to independence and communicate with governance all relationships and
other matters that may be reasonably considered to affect our independence, as well as the
safeguards implemented in relation to these matters.
From the matters communicated with governance, we determine which matters are of most
significance in our audit of the financial statements for the current period and thus constitute key
audit matters. We describe these matters in the audit report, unless prohibited by laws and
regulations from publicly disclosing them, or in very rare cases, if it is reasonably expected that
communicating a matter in the audit report would cause negative consequences outweighing the
benefits in the public interest.
Grant Thornton Zhitong Certified Certified Public Accountant of
Public Accountants LLP China
(Engagement Partner)
Beijing China Certified Public Accountant of
China
April 24 , 2024
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Financial Statement Notes
I. Basic information of the company
CSG HOLDING CO., LTD. (hereinafter referred to as the "Group"), formerly known as CSG CO., LTD. is
invested by China Merchants Steam Navigation Company,Ltd, Shenzhen Building Materials Industry
(Group) Company,China North Industries Shenzhen Corp.and Guangdong International Trust
&Investment Co., Ltd.which is a Chinese-foreign joint venture and established in September 1984.The
Group is registered and headquartered in Shenzhen,Guangdong Province, the People's Republic of
China.The Group publicly issued RMB ordinary shares ("A shares") and foreign shares ("B shares") to the
public in October 1991 and January 1992 respectively, and listed them on the Shenzhen Stock Exchange
("Shenzhen Stock Exchange") in February 1992. "") listed for trading. As of 31 December, 2023, the total
share capital of the Group was 3,070,692,107 yuan, with a par value of 1 yuan per share.
The main business of the Group and its subsidiaries (hereinafter collectively referred to as the "Group")
are production and sales of float glass, photovoltaic glass, special glass, engineering glass, energy-saving
and glass-based energy products, and production of polysilicon and solar modules. and sales, production
and sales of electronic glass and display device, and construction and operation of photovoltaic power
plants, etc.
These financial statements and notes to the financial statements were approved for issuance by the
Group's Board of Directors on 24 April, 2024 .
Please refer to the notes for details of the main subsidiaries included in the scope of consolidation this
year.
II. Basics of Preparation of Financial Statements
These financial statements are prepared in accordance with the Accounting Standards for Business
Enterprises and their application guidelines, interpretations and other relevant regulations issued by the
Ministry of Finance (collectively: " Accounting Standards for Business Enterprises " ). In addition, the
Group also discloses relevant financial information in accordance with the China Securities Regulatory
Commission's "Information Disclosure and Preparation Rules for Companies that Offer Securities to the
Public No. 15 - General Provisions on Financial Reports ( Revised in 2023 ) ".
Management has a reasonable expectation that the Group has and will have adequate resources to
continue in operational existence for the foreseeable future.
The Group's accounting is based on the accrual basis. Except for certain financial instruments and
investment properties, these financial statements are measured on a historical cost basis. If an asset is
impaired, corresponding impairment provisions will be made in accordance with relevant regulations.
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III. Significant Accounting Policies and Accounting Estimates
The depreciation of fixed assets, amortization of intangible assets, capitalization conditions for R&D
expenses and revenue recognition policies based on its own production and operation characteristics.
For specific accounting policies, please refer to Note .
1、Statement on compliance with corporate accounting standards
This financial statement complies with the requirements of the Accounting Standards for Business
Enterprises and truly and completely reflects the Group 's consolidated and company financial status as
of December 31 , 2023 , as well as the consolidated and company operating results, consolidated and
company cash flows and other relevant information in 2023 .
2、Accounting period
The Group adopts the Gregorian calendar year, that is, from January 1 to December 31 each year.
3、Business cycle
The Group's operating cycle is 12 months.
4、Reporting currency
The Group and its domestic subsidiaries use RMB as their functional currency for accounting. The Group's
overseas subsidiaries determine their recording currency based on the currency of the main economic
environment in which they operate. The currency used by the Group in preparing these financial
statements is RMB.
5、Materiality criteria determination method and selection basis
Item Materiality criterion
Significant single provision for bad debts in accounts The amount of individual accounts receivable provision
receivable accounts for over 5% of the combined accounts receivable
balance
Significant single provision for bad debts in other The amount of individual other receivables provision
receivables accounts for over 10% of the combined other receivables
balance
Significant write-off of accounts receivable/other The impact on the company's current profit and loss
receivables accounts for over 5% of the net profit absolute value for the
most recent audited fiscal year, and exceeds 1 million yuan
in absolute amount
Significant construction in progress The budgeted investment amount accounts for over 5% of
the recent audited attributable equity to the parent
company
Significant non-wholly owned subsidiaries The subsidiary's total assets account for over 5% of the
consolidated total assets
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6、Accounting treatment methods for business combinations under the same control and those not under
the same control
（1）Business combination under common control
For business mergers under common control, the assets and liabilities of the merged party acquired by
the merging party during the merger shall be measured based on the book value of the merged party in
the consolidated financial statements of the ultimate controlling party on the merger date. The difference
between the book value of the merger consideration (or the total face value of the shares issued) and the
book value of the net assets obtained in the merger is adjusted to the capital reserve (share premium). If
the capital reserve (share premium) is insufficient to offset it, the retained earnings are adjusted.
The merger of enterprises under the same control is realized step by step through multiple transactions.
The assets and liabilities of the merged party acquired by the merging party in the merger shall be
measured based on the book value in the consolidated financial statements of the ultimate controlling
party on the date of merger; the book value of the investments held before the merger plus the book value
of the newly paid consideration on the date of merger The difference between the sum and the book value
of the net assets obtained in the merger shall be adjusted to the capital reserve (equity premium) . If the
capital reserve is insufficient for offset, the retained earnings shall be adjusted. The long-term equity
investment held by the merging party before it obtained control of the merged party has been confirmed
to be relevant between the date of acquiring the original equity and the date when the merging party and
the merged party are under the final control of the same party, whichever is later, to the date of merger.
Changes in profits and losses, other comprehensive income and other owners' equity should be offset
against the opening retained earnings or current profits and losses during the comparative statement
period respectively.
（2）Business combination not under common control
For business combinations not under common control, the combination cost shall be the assets paid,
liabilities incurred or assumed, and the fair value of equity securities issued to obtain control of the
purchased party on the acquisition date. On the purchase date, the acquired assets, liabilities and
contingent liabilities of the purchased party are recognized at fair value.
If the merger cost is greater than the fair value share of the acquiree's identifiable net assets obtained in
the merger,The difference is recognized as goodwill, and is subsequently measured at cost less
accumulated impairment reserves; if the merger cost is less than the acquiree's identifiable net assets
acquired in the merger, the difference is recognized as goodwill. The difference between the fair value of
the net assets will be included in the current profit and loss after review.
The merger of enterprises not under common control is realized step by step through multiple transactions.
The merger cost is the sum of the consideration paid on the purchase date and the fair value of the
purchased party's equity held before the purchase date on the purchase date. For the equity of the
purchased party that has been held before the purchase date, it will be remeasured according to the fair
value of the equity on the purchase date, and the difference between the fair value and its book value will
be included in the investment income of the current period; The purchaser's equity held before the
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purchase date involves other comprehensive income, changes in other owners' equity are converted into
current income on the purchase date, other comprehensive income arising from the investee's
remeasurement of the net liabilities or changes in net assets of the defined benefit plan, and other
comprehensive income originally designated as fair value Except for other comprehensive income related
to investments in non-trading equity instruments that are measured and whose changes are included in
other comprehensive income.
（3）Handling of Transaction Costs in Business Combinations
Intermediary fees such as auditing, legal services, evaluation and consulting, and other related
management fees incurred for business mergers are included in the current profit and loss when incurred.
The transaction costs of equity securities or debt securities issued as consideration for the merger shall
be included in the initial recognition amount of the equity securities or debt securities.
7、Judgment standards for control and methods for preparing consolidated financial statements
（1）Control criteria
The scope of consolidation in consolidated financial statements is determined based on control. Control
means that the Group has power over the invested unit, enjoys variable returns by participating in the
relevant activities of the invested unit, and has the ability to use its power over the invested unit to affect
its return amount. The Group will reassess when changes in relevant facts and circumstances lead to
changes in the relevant elements involved in the definition of control.
When judging whether to include structured entities into the scope of consolidation, the Group
comprehensively considers all facts and circumstances, including assessing the purpose and design of
the structured entities, identifying the types of variable returns, and whether it bears part or all of the
returns by participating in its related activities. Evaluate whether the structured entity is controlled based
on variability, etc.
（2）How to prepare consolidated financial statements
The consolidated financial statements are based on the financial statements of the Group and its
subsidiaries, and are prepared by the Group based on other relevant information. When preparing
consolidated financial statements, the accounting policies and accounting period requirements of the
Group and its subsidiaries are consistent, and significant inter-company transactions and balances are
offset.
Subsidiaries and businesses that are added due to business combinations under the same control during
the reporting period are deemed to be included in the scope of consolidation of the Group from the date
they are both controlled by the ultimate controlling party. The operating results and cash flows from the
date of the announcement are included in the consolidated income statement and consolidated cash flow
statement respectively.
For subsidiaries and businesses that are added due to business combinations not under common control
during the reporting period, the income, expenses, and profits of the subsidiaries and businesses from
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the date of acquisition to the end of the reporting period are included in the consolidated income statement,
and their cash flows are included in the consolidated cash flow statement.
The part of the subsidiary's shareholders' equity that is not owned by the Group is listed separately as
minority shareholders' equity in the consolidated balance sheet under shareholders' equity; the share of
the subsidiary's current net profit and loss that is minority shareholders' equity is listed in the consolidated
income statement. The net profit item is listed under the item "Profits and losses of minority shareholders" .
If the losses of a subsidiary shared by minority shareholders exceed the minority shareholders' share of
the opening owner's equity of the subsidiary, the balance will still offset the minority shareholders' equity.
（3）Purchase of minority shareholders' equity in subsidiaries
The difference between the newly acquired long-term equity investment cost due to the purchase of
minority shares and the share of the subsidiary's net assets calculated continuously from the date of
purchase or merger based on the new shareholding ratio, and without losing control The difference
between the disposal price obtained from the partial disposal of the equity investment in the subsidiary
and the corresponding share of the subsidiary's net assets calculated continuously from the date of
purchase or merger date corresponding to the disposal of the long-term equity investment shall be
adjusted in the consolidated balance sheet. Capital reserve (equity premium/capital premium), if the
capital reserve is insufficient to offset, the retained earnings will be adjusted.
（4）Treatment of Loss of Control of Subsidiaries
If the control over the original subsidiary is lost due to the disposal of part of the equity investment or other
reasons, the remaining equity shall be remeasured according to its fair value on the date of loss of control;
the sum of the consideration obtained from the disposal of the equity and the fair value of the remaining
equity shall be less Calculated based on the original shareholding ratio, the sum of the share of the book
value of the net assets and goodwill of the original subsidiary calculated continuously from the date of
purchase shall be included in the investment income in the current period when control is lost.
Other comprehensive income related to the equity investment of the original subsidiary should be
accounted for on the same basis as the original subsidiary's direct disposal of relevant assets or liabilities
when the control is lost. Any income related to the original subsidiary that involves accounting under the
equity method other changes in owners' equity should be transferred to the current profits and losses
when control is lost.
8、Determination criteria for cash and cash equivalents
Cash refers to cash on hand and deposits that can be used for payment at any time. Cash equivalents
refer to investments held by the Group that are short-term, highly liquid, easily convertible into known
amounts of cash, and have little risk of value changes.
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9、Foreign currency business and foreign currency statement conversion
（1）Foreign currency business
The Group's foreign currency business is converted into the recording currency amount based on the spot
exchange rate on the date of the transaction.
On the balance sheet date, foreign currency monetary items are converted using the spot exchange rate
on the balance sheet date. The exchange difference arising from the difference between the spot
exchange rate on the balance sheet date and the spot exchange rate at the time of initial recognition or
the previous balance sheet date is included in the current profit and loss; for foreign currency non-
monetary items measured at historical cost, the spot exchange rate on the date of the transaction is still
used The foreign currency non-monetary items measured at fair value shall be converted at the spot
exchange rate on the date when the fair value is determined. The difference between the converted
accounting functional currency amount and the original accounting functional currency amount shall be
converted according to the non-monetary accounting currency amount. The nature of monetary items is
included in current profits and losses or other comprehensive income.
（2）Translation of foreign currency financial statements
On the balance sheet date, when converting the foreign currency financial statements of overseas
subsidiaries, the asset and liability items in the balance sheet are translated using the spot exchange rate
on the balance sheet date. Except for "undistributed profits", shareholders' equity items include other
items. Converted using the spot exchange rate on the date of occurrence.
Income and expense items in the income statement are translated using the spot exchange rate on the
date of transaction.
All items in the cash flow statement are translated according to the spot exchange rate on the date when
the cash flow occurs. The impact of exchange rate changes on cash is regarded as an adjustment item
and is reflected in the "Impact of exchange rate changes on cash and cash equivalents" separately in the
cash flow statement.
Differences arising from the translation of financial statements are reflected in the "other comprehensive
income" item under the shareholders' equity item in the balance sheet.
When an overseas operation is disposed of and control is lost, the translation difference of the foreign
currency statements listed under the shareholders' equity item in the balance sheet and related to the
overseas operation shall be transferred to the current profit and loss of the disposal in full or in proportion
to the disposal of the overseas operation.
10、Financial tool
A financial instrument is a contract that forms a financial asset of one party and a financial liability or equity
instrument of another party.
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（1）Recognition and derecognition of financial instruments
The Group recognizes a financial asset or financial liability when it becomes a party to a financial
instrument contract.
Financial assets shall be derecognized if they meet one of the following conditions:
①The contractual right to receive cash flows from the financial asset terminates;
②The financial asset has been transferred and meets the following conditions for derecognition of
financial asset transfer.
If the current obligation of a financial liability has been discharged in whole or in part, the financial liability
or part of it shall be derecognised. If the Group (debtor) signs an agreement with its creditors to replace
existing financial liabilities by assuming new financial liabilities, and the contract terms of the new financial
liabilities are substantially different from the existing financial liabilities, the existing financial liabilities will
be derecognized and the new financial liabilities will be recognized at the same time.
When financial assets are bought and sold in a regular manner, accounting recognition and derecognition
will be carried out based on the transaction date.
（2）Classification and measurement of financial assets
Upon initial recognition, the Group classifies financial assets into the following three categories based on
the business model of managing financial assets and the contractual cash flow characteristics of financial
assets: financial assets measured at amortized cost, financial assets measured at fair value through other
comprehensive income and financial assets measured at fair value through profits and losses.
Financial assets are measured at fair value upon initial recognition. For financial assets measured at fair
value through profit and loss, the relevant transaction costs are directly included in the current profit and
loss; for other types of financial assets, the relevant transaction costs are included in the initial recognition
amount. For receivables arising from the sale of products or provision of services that do not include or
take into account significant financing components, the amount of consideration that the Group is
expected to be entitled to receive shall be deemed as the initial recognition amount.
Financial assets measured at amortized cost
The Group classifies financial assets that meet the following conditions and are not designated as
measured at fair value through profit or loss as financial assets measured at amortized cost:
The Group's business model for managing this financial asset is aimed at collecting contractual
cash flows;
The contractual terms of the financial asset provide that the cash flows generated on a specific
date are solely payments of principal and interest based on the outstanding principal amount.
After initial recognition, such financial assets are measured at amortized cost using the effective interest
rate method. Gains or losses arising from financial assets that are measured at amortized cost and are
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not part of any hedging relationship are included in the current profit and loss when they are derecognized,
amortized according to the effective interest method, or impairment is recognized.
Financial assets measured at fair value through other comprehensive income
The Group classifies financial assets that meet the following conditions and are not designated as
measured at fair value through profit or loss as financial assets at fair value through other comprehensive
income:
The Group's business model for managing the financial assets aims at both collecting contractual
cash flows and selling the financial assets;
The contractual terms of the financial asset provide that the cash flows generated on a specific
date are solely payments of principal and interest based on the outstanding principal amount.
After initial recognition, such financial assets are subsequently measured at fair value. Interest,
impairment losses or gains and exchange gains and losses calculated using the effective interest rate
method are included in the current profit and loss, and other gains or losses are included in other
comprehensive income. When derecognition is terminated, the accumulated gains or losses previously
included in other comprehensive income will be transferred out of other comprehensive income and
included in the current profit and loss.
Financial assets measured at fair value through profits and losses
Except for the above-mentioned financial assets measured at amortized cost and at fair value through
other comprehensive income, the Group classifies all remaining financial assets as financial assets at fair
value through profit or loss. At the time of initial recognition, in order to eliminate or significantly reduce
accounting mismatches, the Group irrevocably designated some financial assets that should have been
measured at amortized cost or at fair value through other comprehensive income as financial assets
measured through profits and losses.
After initial recognition, such financial assets are subsequently measured at fair value, and the resulting
gains or losses (including interest and dividend income) are included in the current profits and losses,
unless the financial assets are part of a hedging relationship.
The business model for managing financial assets refers to how the Group manages financial assets to
generate cash flow. The business model determines whether the source of cash flow from the financial
assets managed by the Group is collection of contractual cash flow, sale of financial assets or both. The
Group determines the business model for managing financial assets based on objective facts and specific
business objectives for managing financial assets determined by key management personnel.
The Group evaluates the contractual cash flow characteristics of financial assets to determine whether
the contractual cash flows generated by the relevant financial assets on a specific date are only payments
of principal and interest based on the outstanding principal amount. Among them, principal refers to the
fair value of the financial asset at the time of initial recognition; interest includes consideration for the time
value of money, the credit risk associated with the outstanding principal amount in a specific period, and
other basic lending risks, costs and profits. In addition, the Group evaluates contract terms that may cause
changes in the time distribution or amount of contractual cash flows of financial assets to determine
whether they meet the requirements of the above contractual cash flow characteristics.
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Only when the Group changes its business model for managing financial assets, all affected relevant
financial assets will be reclassified on the first day of the first reporting period after the change in business
model. Otherwise, financial assets shall not be reclassified after initial recognition. .
Financial assets are measured at fair value upon initial recognition. For financial assets measured at fair
value through profit and loss, the relevant transaction costs are directly included in the current profit and
loss; for other types of financial assets, the relevant transaction costs are included in the initial recognition
amount. For accounts receivable arising from the sale of products or provision of services that do not
include or take into account significant financing components, the amount of consideration that the Group
is expected to be entitled to receive shall be deemed as the initial recognition amount.
（3）Classification and measurement of financial liabilities
The Group's financial liabilities are classified upon initial recognition into: financial liabilities measured at
fair value through profit or loss, and financial liabilities measured at amortized cost. For financial liabilities
that are not classified as measured at fair value through profit and loss, relevant transaction costs are
included in their initial recognition amount.
Financial liabilities measured at fair value through profit or loss
Financial liabilities at fair value through profit or loss include trading financial liabilities and financial
liabilities designated as fair value through profit or loss upon initial recognition. Such financial liabilities
are subsequently measured at fair value, and gains or losses arising from changes in fair value, as well
as dividends and interest expenses related to such financial liabilities, are included in the current profits
and losses.
Financial liabilities measured at amortized cost
Other financial liabilities adopt the actual interest rate method and are subsequently measured at
amortized cost. Gains or losses arising from derecognition or amortization are included in the current
profits and losses.
The difference between financial liabilities and equity instruments
Financial liabilities refer to liabilities that meet one of the following conditions:
①Contractual obligation to deliver cash or other financial assets to other parties.
②Contractual obligations to exchange financial assets or financial liabilities with other parties under
potentially adverse conditions.
③Non-derivative contracts that must or can be settled with the enterprise's own equity instruments in the
future, and the enterprise will deliver a variable number of its own equity instruments according to the
contract.
④Derivative contracts that must or can be settled with the enterprise's own equity instruments in the
future, except for derivative contracts that exchange a fixed number of its own equity instruments for a
fixed amount of cash or other financial assets.
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Equity instruments refer to contracts that prove ownership of the remaining equity in the assets of an
enterprise after deducting all liabilities.
If the Group cannot unconditionally avoid delivering cash or other financial assets to fulfill a contractual
obligation, the contractual obligation meets the definition of a financial liability.
If a financial instrument must be settled or can be settled with the Group's own equity instruments, it is
necessary to consider whether the Group's own equity instruments used to settle the instrument are used
as a substitute for cash or other financial assets, or to enable the holders of the instrument to The
remaining interest in the issuer's assets after deducting all liabilities. If it is the former, the instrument is a
financial liability of the Group; if it is the latter, the instrument is an equity instrument of the Group.
（4）Fair value of financial instruments
Note for the method of determining the fair value of financial assets and financial liabilities.
（5）Impairment of financial assets
Based on expected credit losses, the Group performs impairment accounting on the following items and
recognizes loss provisions:
Financial assets measured at amortized cost;
Receivables and debt investments measured at fair value through other comprehensive income ;
Contract assets as defined in "Accounting Standards for Business Enterprises No. 14 - Revenue ";
Lease receivables;
Financial guarantee contracts (except those that are measured at fair value and whose changes
are included in current profits and losses, the transfer of financial assets does not meet the conditions
for derecognition, or the financial assets continue to be involved in the transferred financial assets).
Measurement of expected credit losses
Expected credit losses refer to the weighted average of the credit losses of financial instruments with the
risk of default as the weight. Credit loss refers to the difference between all contractual cash flows
receivable under the contract and all cash flows expected to be received by the Group discounted at the
original effective interest rate, that is, the present value of all cash shortfalls.
The Group considers reasonable and well-founded information about past events, current conditions, and
predictions of future economic conditions, and weights the risk of default to calculate the difference
between the cash flows receivable under the contract and the cash flows expected to be received. The
probability-weighted amount of the present value is recognized as the expected credit loss.
The Group measures the expected credit losses of financial instruments at different stages respectively.
If the credit risk of a financial instrument has not increased significantly since initial recognition, it is in the
first stage, and the Group will measure loss provisions based on the expected credit losses in the next 12
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months; if the credit risk of a financial instrument has increased significantly since initial recognition but
has not yet occurred If the financial instrument is credit-impaired, it is in the second stage, and the Group
measures the loss provision based on the expected credit losses for the entire duration of the instrument;
if the financial instrument has been credit-impaired since initial recognition, it is in the third stage, and the
Group measures the expected credit losses for the entire duration of the instrument. The expected credit
losses during the duration are measured as loss provisions.
For financial instruments with low credit risk on the balance sheet date, the Group assumes that its credit
risk has not increased significantly since initial recognition and measures loss provisions based on
expected credit losses within the next 12 months.
Lifetime expected credit losses refer to the expected credit losses caused by all possible default events
that may occur during the entire expected life of a financial instrument. Expected credit losses in the next
12 months refer to the default events of financial instruments that may occur within 12 months after the
balance sheet date (if the expected duration of the financial instrument is less than 12 months, the
expected duration) Expected credit losses are part of the expected credit losses throughout the entire
duration.
When measuring expected credit losses, the maximum period that the Group needs to consider is the
longest contract period for which the enterprise faces credit risk (including consideration of renewal
options).
For financial instruments in the first and second stages and with lower credit risk, the Group calculates
interest income based on its Carrying Amount before impairment provisions and actual interest rate. For
financial instruments in the third stage, interest income is calculated based on its Carrying Amount minus
the amortized cost and actual interest rate after impairment provisions have been made.
For receivables such as notes receivable, accounts receivable, receivable financing, other receivables,
and contract assets, if the credit risk characteristics of a certain customer are significantly different from
other customers in the portfolio, or the credit risk of the customer If the characteristics of the receivables
change significantly, the Group shall make a separate provision for bad debts for the receivables. In
addition to the receivables for which bad debt provisions are made individually, the Group divides the
receivables into groups based on credit risk characteristics and calculates bad debt provisions on a group
basis.
Notes receivable, accounts receivable and contract assets
For notes receivable and accounts receivable, regardless of whether there is a significant financing
component, the Group always measures its loss provisions at an amount equivalent to the expected credit
losses during the entire duration.
When the information on expected credit losses cannot be assessed at a reasonable cost for a single
financial asset, the Group divides notes receivable and accounts receivable into groups based on credit
risk characteristics, and calculates expected credit losses on the basis of the groups. The basis for
determining the group is as follows:
A. Notes receivable
Notes Receivable Portfolio 1: Bank Acceptance Bill
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Notes Receivable Portfolio 2: Commercial Acceptance Bill
B. Accounts receivable
Accounts receivable portfolio 1: Non-related party customers
Accounts Receivable Portfolio 2: Related Party Customers
For notes receivable and contract assets divided into portfolios, the Group refers to historical credit loss
experience, combined with current conditions and predictions of future economic conditions, and
calculates expected credit losses through default risk exposure and the expected credit loss rate
throughout the duration.
For accounts receivable divided into portfolios, the Group refers to historical credit loss experience,
combined with current conditions and predictions of future economic conditions, to prepare a comparison
table between the aging/overdue days of accounts receivable and the expected credit loss rate for the
entire duration. Calculate expected credit losses. The aging of accounts receivable is calculated from the
date of confirmation / the number of overdue days is calculated from the date of expiration of the credit
period.
Other receivables
The Group divides other receivables into several combinations based on credit risk characteristics, and
calculates expected credit losses on the basis of the combinations. The basis for determining the
combinations is as follows:
Other receivables portfolio 1: Amounts due from non-related parties
Other receivables portfolio 2: Amounts due from related parties
For other receivables classified into portfolios, the Group calculates expected credit losses through the
default risk exposure and the expected credit loss rate within the next 12 months or throughout the
duration. For other receivables grouped by aging, the aging is calculated from the date of confirmation.
Debt investment, other debt investment
For debt investments and other debt investments, the Group calculates expected credit based on the
nature of the investment and various types of counterparties and risk exposures through default risk
exposure and expected credit loss rate within the next 12 months or throughout the duration.
Assessment of significant increase in credit risk
The Group compares the risk of default of a financial instrument on the balance sheet date with the risk
of default on the initial recognition date to determine the relative change in the default risk of the financial
instrument during its expected duration to assess whether the credit risk of the financial instrument has
increased significantly since its initial recognition.
When determining whether the credit risk has increased significantly since initial recognition, the Group
considers reasonable and supportable information, including forward-looking information,that can be
obtained without unnecessary additional cost or effort. Information considered by the Group includes:
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The debtor fails to pay the principal and interest on the due date of the contract;
an actual or expected significant deterioration in the external or internal credit rating (if any) of the
financial instrument;
The actual or expected serious deterioration in the debtor’s operating results;
Existing or expected changes in the technological, market, economic or legal environment will have
a significant adverse impact on the debtor's ability to repay the Group's debt.
Depending on the nature of the financial instrument, the Group assesses whether there is a significant
increase in credit risk on the basis of a single financial instrument or a combination of financial instruments.
When evaluating based on a portfolio of financial instruments, the Group can classify financial instruments
based on common credit risk characteristics, such as overdue information and credit risk ratings.
If it is overdue for more than 30 days, the Group determines that the credit risk of the financial instrument
has increased significantly.
The Group believes that financial assets default in the following circumstances:
It is unlikely that the borrower will pay in full what it owes the Group, an assessment that does not
take into account recourse actions by the Group such as the realization of collateral (if held);
Financial assets are overdue for more than 90 days.
Credit-impaired financial assets
The Group assesses whether credit impairment has occurred on financial assets measured at amortized
cost and debt investments measured at fair value through other comprehensive income on the balance
sheet date. When one or more events occur that have an adverse impact on the expected future cash
flows of a financial asset, the financial asset becomes a credit-impaired financial asset. Evidence that a
financial asset has been credit-impaired includes the following observable information:
The issuer or debtor encounters significant financial difficulties;
The debtor breaches the contract, such as default or overdue payment of interest or principal;
The Group grants the debtor concessions that it would not have made under any other
circumstances due to economic or contractual considerations related to the debtor's financial difficulties;
the likelihood that the debtor will go bankrupt or undergo other financial reorganization;
Financial difficulties of the issuer or debtor result in the disappearance of an active market for the
financial asset.
Presentation of expected credit loss provisions
In order to reflect changes in the credit risk of financial instruments since initial recognition, the Group re-
measures expected credit losses on each balance sheet date, and the resulting increase or reversal of
loss provisions shall be accounted for as impairment losses or gains into current profit and loss. For
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financial assets measured at amortized cost, the loss provision is reduced by the book value of the
financial assets listed in the balance sheet; for debt investments measured at fair value through other
comprehensive income, the Group's other comprehensive income The loss provision is recognized in
income and does not deduct the book value of the financial asset.
Write off
If the Group no longer reasonably expects that the contractual cash flows of a financial asset can be fully
or partially recovered, it will directly write down the Carrying Amount of the financial asset. Such a write-
down constitutes the derecognition of the relevant financial asset. This situation usually occurs when the
Group determines that the debtor does not have the assets or sources of income to generate sufficient
cash flow to repay the amount that will be written down. However, in accordance with the Group's
procedures for recovering due amounts, financial assets that are written down may still be affected by
execution activities.
If a financial asset that has been written down is later recovered, the reversal of the impairment loss will
be included in the profit and loss of the current period of recovery.
（6）Financial asset transfer
The transfer of financial assets refers to the transfer or delivery of financial assets to another party (the
transfer-in party) other than the issuer of the financial assets.
If the Group has transferred substantially all risks and rewards of ownership of a financial asset to the
transferee, the financial asset shall be derecognised; if the Group has retained substantially all risks and
rewards of ownership of the financial asset, the financial asset shall not be derecognised.
If the Group neither transfers nor retains substantially all the risks and rewards of ownership of a financial
asset, it shall handle the following situations respectively: if it gives up control of the financial asset, the
financial asset shall be derecognised and the assets and liabilities incurred shall be recognized; if it has
not given up control of the financial asset, If the financial asset is controlled, the relevant financial assets
shall be recognized to the extent of its continued involvement in the transferred financial assets, and the
relevant liabilities shall be recognized accordingly.
（7）Offset of financial assets and financial liabilities
When the Group has the legal right to offset the recognized financial assets and financial liabilities and is
currently able to enforce such legal rights, and the Group plans to settle on a net basis or to realize the
financial assets and pay off the financial liabilities at the same time, the financial assets and financial
liabilities will be Financial liabilities are presented in the balance sheet at the amount after offsetting each
other. Otherwise, financial assets and financial liabilities are presented separately in the balance sheet
and are not offset against each other.
11、Fair value measurement
Fair value refers to the price that can be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants on the measurement date.
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The Group measures relevant assets or liabilities at fair value, assuming that an orderly transaction to
sell assets or transfer liabilities is conducted in the main market for the relevant assets or liabilities; if there
is no main market, the Group assumes that the transaction is in the most advantageous market for the
relevant assets or liabilities. The market proceeds. The main market (or the most advantageous market)
is the trading market that the Group can enter on the measurement date. The Group adopts the
assumptions used by market participants to maximize their economic interests when pricing the asset or
liability.
For financial assets or financial liabilities that have an active market, the Group determines their fair value
using quoted prices in the active market. If there is no active market for a financial instrument, the Group
uses valuation techniques to determine its fair value.
When measuring non-financial assets at fair value, the ability of market participants to use the asset for
its best purpose to generate economic benefits is considered, or the ability to sell the asset to other market
participants that can be used for its best purpose to generate economic benefits.
The Group adopts valuation techniques that are applicable under the current circumstances and
supported by sufficient available data and other information. It gives priority to the use of relevant
observable input values and unobservable input values only uses when the observable input values
cannot be obtained or are impractical to obtain..
For assets and liabilities measured or disclosed at fair value in financial statements, the fair value level to
which they belong is determined based on the lowest level input value that is significant to the overall fair
value measurement: the first level input value is the value that can be measured on the measurement
date. The unadjusted quoted price of the same asset or liability obtained in the active market; the second
level input value is the directly or indirectly observable input value of the relevant assets or liabilities in
addition to the first level input value; the third level input value is Unobservable inputs to related assets or
liabilities.
At each balance sheet date, the Group reassesses the assets and liabilities recognized in the financial
statements that continue to be measured at fair value to determine whether there is a transition between
fair value measurement levels.
12、Inventories
（1）Inventory classification
The Group's inventories are divided into raw materials, work in progress, inventory goods and turnover
materials.
（2）Valuation method for issued inventory
The Group's inventories are valued at actual cost when acquired. Raw materials, inventory, etc. are priced
using the weighted average method when shipped.
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（3）Methods of Provision for inventories
On the balance sheet date, inventories are measured at the lower of cost and net realizable value. When
the net realizable value is lower than the cost, a provision for inventory depreciation is made.
Net realizable value is the estimated selling price of the inventory minus the estimated costs to be incurred
upon completion, estimated selling expenses and related taxes. When determining the net realizable
value of inventories, it is based on the conclusive evidence obtained and the purpose of holding the
inventories and the impact of events after the balance sheet date are also considered.
The Group usually accrues inventory depreciation provisions based on individual inventory items. For
inventories with large quantities and low unit prices, inventory depreciation provisions are made according
to the inventory category.
On the balance sheet date, if the factors that previously caused the inventory value to be written down
have disappeared, the inventory depreciation provision shall be reversed within the amount originally
accrued.
（4）Inventory system
The Group adopts the perpetual inventory system.
13、Long-term investment
Long-term equity investments include equity investments in subsidiaries, joint ventures and associates.
The associates of the Group are those that the Group can exert significant influence on the invested units.
（1）Initial measurement of investment cost
Long-term equity investments resulting from business combinations: For long-term equity investments
obtained from business combinations under common control, the share of the book value of the owner's
equity of the merged party in the consolidated financial statements of the ultimate controlling party will be
used as the investment cost on the date of merger ; not under the same control For long-term equity
investments obtained through a business merger, the investment cost of the long-term equity investment
shall be based on the merger cost.
For long-term equity investments obtained by other means: for long-term equity investments obtained by
paying cash, the actual purchase price paid will be used as the initial investment cost; for long-term equity
investments obtained by issuing equity securities, the fair value of the equity securities issued will be used
as the initial investment cost.
（2）Subsequent measurement and profit and loss recognition methods
Investments in subsidiaries are accounted for using the cost method, unless the investment qualifies as
held for sale; investments in associates and joint ventures are accounted for using the equity method.
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For long-term equity investments accounted for using the cost method, in addition to the actual price paid
when acquiring the investment or the cash dividends or profits that have been declared but not yet
distributed included in the consideration, the cash dividends or profits declared to be distributed by the
investee shall be recognized as investment income for current profit and loss.
For long-term equity investments accounted for using the equity method, if the initial investment cost is
greater than the fair value share of the investee’s identifiable net assets that should be enjoyed at the
time of investment, the investment cost of the long-term equity investment will not be adjusted; if the initial
investment cost is less than the investment, the investee’s share of the identifiable net assets should be
enjoyed If the fair value share of net assets is identified, the book value of the long-term equity investment
will be adjusted, and the difference will be included in the current profit and loss of the investment.
When accounting using the equity method, investment income and other comprehensive income are
recognized respectively according to the share of the net profit or loss and other comprehensive income
realized by the investee that should be enjoyed or shared, and the book value of the long-term equity
investment is adjusted at the same time; in accordance with the declaration of the investee The portion
of the distributed profits or cash dividends that should be calculated will reduce the book value of the long-
term equity investment accordingly; for other changes in the owner's equity of the investee other than net
profit and loss, other comprehensive income and profit distribution, the book value of the long-term equity
investment will be adjusted and Included in capital reserves (other capital reserves). When confirming the
share of the investee's net profits and losses, the fair value of the investee's identifiable assets when the
investment is obtained is used as the basis, and in accordance with the Group's accounting policies and
accounting periods, the net profit of the investee is determined. Make adjustments and confirm.
If it is possible to exert significant influence on the investee or implement joint control but does not
constitute control due to additional investment or other reasons, on the conversion date, the sum of the
fair value of the original equity plus the cost of the new investment will be used as the initial investment
cost to be accounted for by the equity method. If the original equity is classified as a non-trading equity
instrument investment measured at fair value and its changes are included in other comprehensive
income, the related cumulative fair value changes originally included in other comprehensive income will
be transferred to retained earnings when it is accounted for under the equity method. .
If the joint control or significant influence on the invested unit is lost due to the disposal of part of the
equity investment or other reasons, the remaining equity after the disposal shall be changed to the
"Accounting Standards for Business Enterprises No. 22 - Financial Instrument Recognition and Significant
Influence" on the date of loss of joint control or significant influence. Measurement" is used for accounting
treatment, and the difference between the fair value and the book value is included in the current profit
and loss. Other comprehensive income recognized due to the use of the equity method for accounting in
the original equity investment will be accounted for on the same basis as the investee's direct disposal of
relevant assets or liabilities when the equity method is terminated; other changes in owner's equity related
to the original equity investment Transferred to current profit and loss.
If the control over the invested unit is lost due to the disposal of part of the equity investment or other
reasons, and the remaining equity after the disposal can jointly control or exert significant influence on
the invested unit, it shall be accounted for according to the equity method, and the remaining equity shall
be regarded as owned. Adjustments will be made using the equity method upon acquisition; if the
remaining equity after disposal cannot jointly control or exert significant influence on the invested unit, the
relevant provisions of "Accounting Standards for Business Enterprises No. 22 - Recognition and
Measurement of Financial Instruments" will be followed. Accounting treatment, the difference between its
fair value and book value on the date of loss of control is included in the current profit and loss.
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If the Group's shareholding ratio decreases due to capital increase by other investors, thereby losing
control but it can exercise joint control or exert significant influence on the invested unit, the Group's share
of the invested unit due to the capital increase shall be confirmed based on the new shareholding ratio.
The difference between the share of net assets increased due to share expansion and the original book
value of the long-term equity investment corresponding to the decrease in shareholding ratio that should
be carried forward is included in the current profit and loss; then, the new shareholding ratio is deemed
to have been calculated since the investment was obtained. That is, adjustments are made using the
equity method of accounting.
Unrealized gains and losses from internal transactions between the Group and its associates and joint
ventures are calculated based on the shareholding ratio and are attributable to the Group, and investment
gains and losses are recognized on an offsetting basis. However, if the unrealized internal transaction
losses between the Group and the investee are impairment losses on the transferred assets, they will not
be offset.
（3）Basis for determining joint control and significant influence on the invested unit
Joint control refers to the shared control over an arrangement in accordance with relevant agreements,
and the relevant activities of the arrangement must be decided only with the unanimous consent of the
participants sharing control rights. When judging whether there is joint control, first judge whether the
arrangement is collectively controlled by all participants or a combination of participants, and secondly
whether decisions on activities related to the arrangement must be unanimously agreed upon by the
participants who collectively control the arrangement. If all participants or a group of participants must act
in concert to determine the relevant activities of an arrangement, all participants or a group of participants
are considered to collectively control the arrangement; if there are two or more combinations of
participants that can collectively Control of an arrangement does not constitute joint control. When
determining whether joint control exists, the protective rights enjoyed are not taken into account.
Significant influence means that the investor has the power to participate in decision-making on the
financial and operating policies of the investee, but it is not able to control or jointly control the formulation
of these policies with other parties. When determining whether it can exert a significant influence on the
investee, it is considered that the investor's direct or indirect holdings of voting shares in the investee and
the current executable potential voting rights held by the investor and other parties are assumed to be
converted into control over the investee. The impact arising from the acquisition of equity includes the
impact of current convertible warrants, share options and convertible corporate bonds issued by the
investee.
When the Group directly or indirectly through subsidiaries owns more than 20% (inclusive) but less than
50% of the voting shares of the invested unit, it is generally considered to have a significant influence on
the invested unit, unless there is clear evidence that this situation It is unable to participate in the
production and operation decisions of the invested unit and does not have a significant impact; when the
Group owns less than 20% (exclusive) of the voting shares of the invested unit, it is generally not
considered to have a significant impact on the invested unit, unless there is clear evidence that this Under
such circumstances, we can participate in the production and operation decisions of the invested unit and
have a significant influence.
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（4）Impairment testing method and impairment provision accrual method
For investments in subsidiaries, associates and joint ventures, please refer to Note for the method of
calculating asset impairment.
14、Investment properties
Investment property is property held to earn rentals or for capital appreciation, or both. The Group's
investment properties includes leased land use rights, land use rights held and prepared to be transferred
after appreciation, and leased buildings.
There is an active real estate trading market in the location where the Group's investment real estate is
located, and the Group is able to obtain market prices and other relevant information of similar or similar
real estate from the real estate trading market, so that it can make a reasonable estimate of the fair value
of the investment real estate. Therefore, the Group adopts the fair value model for subsequent
measurement of investment real estate, and changes in fair value through profit and loss.
When determining the fair value of investment properties, refer to the current market price of the same or
similar real estate in the active market; if the current market price of the same or similar real estate cannot
be obtained, refer to the latest transaction price of the same or similar real estate in the active market,
and Consider the transaction situation, transaction date, location and other factors to make a reasonable
estimate of the fair value of the investment property; or determine its fair value based on the expected
future rental income and the present value of the relevant cash flows.
In rare cases, if there is evidence that the Group acquires an investment property that is not under
construction for the first time (or an existing property becomes an investment property for the first time
after completing construction or development activities or changing its use), the Group will If the fair value
of investment real estate cannot be obtained continuously and reliably, the investment real estate will be
measured using the cost model until disposal, and it is assumed that there is no residual value.
The difference between the disposal income from the sale, transfer, scrapping or damage of investment
properties after deducting its book value and relevant taxes is included in the current profit and loss.
15、Fixed assets
（1）Fixed asset recognition conditions
The Group's fixed assets refer to tangible assets held for the production of goods, provision of labor
services, leasing or operation and management, and with a useful life of more than one accounting year.
A fixed asset can only be recognized when the economic benefits related to the fixed asset are likely to
flow into the enterprise and the cost of the fixed asset can be measured reliably.
The Group's fixed assets are initially measured based on the actual cost when acquired.
Subsequent expenditures related to fixed assets shall be included in the cost of fixed assets when the
economic benefits related to them are likely to flow into the Group and their costs can be reliably measured;
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daily repair costs of fixed assets that do not meet the conditions for subsequent expenditures for
capitalization of fixed assets shall be included in the cost of fixed assets when the economic benefits
related to them are likely to flow into the Group and their costs can be measured reliably. When incurred,
it shall be included in the current profit and loss or included in the cost of related assets according to the
beneficiary object. For the replaced part, its book value is derecognized.
（2）Depreciation methods for various types of fixed assets
Fixed assets are depreciated using the straight-line method based on their costs less estimated residual
values over their estimated useful lives Depreciation begins when a fixed asset reaches its intended
usable condition, and depreciation stops when it is derecognized or classified as a non-current asset held
for sale. Without considering impairment provisions, the Group determines the annual depreciation rates
of various types of fixed assets based on fixed asset category, estimated service life and estimated
residual value as follows:
Category Useful lives (years) Residual rate% Annual depreciation rate %
Buildings 20-35 5 4.75-2.71
Mechinery equipment 8-20 5 11.88-4.75
Transportation and Others 5-8 0 20-12.50
Among them, for fixed assets for which impairment provisions have been made, the depreciation rate
should also be calculated and determined by deducting the accumulated amount of fixed asset
impairment provisions.
（3）Note for the impairment testing method and impairment provision accrual method for fixed assets.
（4）At the end of each year, the Group reviews the useful life, estimated net residual value and depreciation
method of fixed assets.
If there is a difference between the estimated useful life and the original estimate, the useful life of the
fixed assets will be adjusted; if there is a difference between the expected net residual value and the
original estimate, the estimated net residual value will be adjusted.
（5）Fixed asset disposal
When a fixed asset is disposed of or no economic benefits are expected to be generated through use or
disposal, the fixed asset is derecognised. The amount of disposal income from the sale, transfer,
scrapping or damage of fixed assets after deducting their book value and relevant taxes is included in the
current profit and loss.
16、Construction in progress
The cost of the Group's construction-in-progress is determined based on actual project expenditures,
including various necessary project expenditures incurred during the construction period, borrowing costs
that should be capitalized before the project reaches its intended usable state, and other related expenses.
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Construction in progress is transferred to fixed assets when it reaches the intended usable state. The
criteria for judging the intended usable status should meet one of the following conditions: The physical
construction (including installation) of the fixed assets has been completed or substantially completed,
trial production or trial operation has been carried out, and the results show that the assets can operate
normally. Or it can produce stably, or the trial operation results show that it can operate normally. The
amount of expenditure on the fixed assets constructed is very small or almost no longer occurs, and the
fixed assets purchased have met the design or contract requirements, or are basically consistent with the
design or contract requirements.
Note for the method of accruing asset impairment for construction in progress.
17、Engineer material
The Group's engineering materials refer to various materials prepared for projects under construction,
including engineering materials, equipment that has not yet been installed, and tools and equipment
prepared for production.
The purchased engineering materials are measured at cost, the engineering materials received are
transferred to the project under construction, and the remaining engineering materials after the completion
of the project are transferred to inventory.
Note for the asset impairment method of construction materials.
In the balance sheet, the closing balance of construction materials is listed in the "Construction in
Progress" item.
18、Borrowing costs
（1）Recognition principles for capitalization of borrowing costs
If the borrowing costs incurred by the Group are directly attributable to the acquisition, construction or
production of assets that meet the capitalization conditions, they shall be capitalized and included in the
cost of the relevant assets; other borrowing costs shall be recognized as expenses based on the amount
incurred when incurred and shall be included in the cost of the relevant assets for current profit and loss.
Borrowing costs will begin to be capitalized if they meet the following conditions at the same time:
①Asset expenditures have occurred. Asset expenditures include expenditures in the form of cash
payments, transfers of non-cash assets or interest-bearing debts for the acquisition, construction or
production of assets that meet capitalization conditions;
②The borrowing costs have been incurred;
③The necessary purchase, construction or production activities to bring the asset to its intended usable
or salable state have begun.
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（2）Borrowing cost capitalization period
When the assets purchased, constructed or produced by the Group that meet the capitalization conditions
are ready for intended use or sale, the capitalization of borrowing costs will cease. Borrowing costs
incurred after the assets that meet the capitalization conditions reach the intended usable or salable state
are recognized as expenses based on the amount incurred when incurred and included in the current
profit and loss.
If an asset that meets the capitalization conditions is abnormally interrupted during the acquisition,
construction or production process, and the interruption lasts for more than 3 months, the capitalization
of borrowing costs will be suspended; the borrowing costs during the normal interruption period will
continue to be capitalized.
（3）Calculation method of capitalization rate of borrowing costs and capitalization amount
The interest expenses actually incurred on special borrowings in the current period, minus the interest
income from unused borrowed funds deposited in banks or investment income from temporary
investments, are capitalized; general borrowings are capitalized based on the excess of the accumulated
asset expenditures over the special borrowings. The capitalization amount is determined by multiplying
the weighted average of asset expenditures by the capitalization rate of the general borrowings occupied.
The capitalization rate is calculated and determined based on the weighted average interest rate of
general borrowings.
During the capitalization period, all exchange differences on special foreign currency borrowings are
capitalized; exchange differences on general foreign currency borrowings are included in the current
profits and losses.
19、Intangible assets
The Group's intangible assets include land use rights, patent rights and proprietary technologies, mineral
mining rights and others.
Intangible assets are initially measured based on cost, and their service life is analyzed and judged when
the intangible assets are acquired. If the service life is limited, from the time when the intangible asset
becomes available for use, an amortization method that can reflect the expected realization method of
the economic benefits related to the asset shall be used, and amortization will be amortized within the
estimated useful life; if the expected realization method cannot be reliably determined, Amortization is
carried out using the straight-line method; intangible assets with indefinite service life are not amortized.
The amortization method of intangible assets with limited useful life is as follows:
Category Useful lives (years) Basis for determining service life Amortization method Notes
Land use rights 30-70 years Warrant Straight-line Depreciation
Patent rights and
proprietary 5-20 years Estimated useful life Straight-line Depreciation
technologies
Exploitation 16-20 years Warrants, expected income period Straight-line Depreciation
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rights
Others 2-10 years Estimated useful life Straight-line Depreciation
At the end of each year, the Group reviews the useful life and amortization method of intangible assets
with limited service life. If it is different from the previous estimate, the original estimate is adjusted and
treated as a change in accounting estimate.
If it is expected that an intangible asset will no longer bring future economic benefits to the enterprise on
the balance sheet date, the entire book value of the intangible asset will be transferred to the current profit
and loss.
Note for the method of impairment for intangible assets.
20、R & D expenditure
The Group's R&D expenditures are expenditures directly related to the company's R&D activities,
including R&D staff salaries, direct investment costs, depreciation expenses and long-term deferred
expenses, design expenses, equipment commissioning expenses, intangible asset amortization
expenses, entrusted external research and development expenses, Other expenses etc. The wages of
R&D personnel are included in R&D expenditures based on project working hours. Equipment, production
lines, and sites shared between R&D activities and other production and operation activities are included
in R&D expenses according to the proportion of working hours and the proportion of area.
The Group divides expenditures on internal research and development projects into expenditures in the
research phase and expenditures in the development phase.
Expenditures in the research stage are included in the current profits and losses when incurred.
Expenditures in the development stage can only be capitalized if they meet the following conditions: it is
technically feasible to complete the intangible asset so that it can be used or sold; there is the intention
to complete the intangible asset and use or sell it; the intangible asset The way to generate economic
benefits includes being able to prove that there is a market for the products produced using the intangible
assets or that the intangible assets themselves have a market. If the intangible assets will be used
internally, they can prove their usefulness; there are sufficient technical, financial and other resource
supports. , in order to complete the development of the intangible asset and have the ability to use or sell
the intangible asset; the expenditures attributable to the development stage of the intangible asset can
be measured reliably. Development expenditures that do not meet the above conditions are included in
the current profit and loss.
The Group's research and development projects will enter the development stage after meeting the above
conditions and passing technical feasibility and economic feasibility studies to form a project.
Capitalized expenditures in the development phase are listed as development expenditures on the
balance sheet and are converted into intangible assets from the date the project reaches its intended use.
Capitalization conditions for specific R&D projects:
Expenditures in the research stage are included in the current profits and losses when incurred. Before
large-scale production, expenditures related to the design and testing phase of the final application of the
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production process are expenditures in the development phase. If the following conditions are met at the
same time, they will be capitalized:
The development of the production process has been fully demonstrated by the technical team;
Management has approved the budget for production process development;
The research and analysis of the preliminary market research shows that the products produced by the
production process have market promotion capabilities;
Have sufficient technical and financial support to carry out production process development activities and
subsequent large-scale production; and the expenditure on production process development can be
reliably collected. If it is impossible to distinguish between expenditures in the research stage and
expenditures in the development stage, all R&D expenditures incurred will be included in the current profit
and loss.
21、Asset impairment
For subsidiaries’ long-term investments, fixed assets, construction in process, right-of-use assets,
intangible assets, goodwill, etc. (excluding inventories, investment properties measured according to the
fair value model, deferred tax assets, and financial assets) value, determined as follows:
On the balance sheet date, it is judged whether there are any signs of possible impairment of the assets.
If there are signs of impairment, the Group will estimate its recoverable amount and conduct an
impairment test. Goodwill formed due to business combinations, intangible assets with indefinite useful
lives and intangible assets that have not yet reached a usable state are subject to impairment testing
every year regardless of whether there are signs of impairment.
The recoverable amount is determined based on the higher of the asset's fair value less disposal costs
and the present value of the asset's expected future cash flows. The Group estimates the recoverable
amount on the basis of a single asset; if it is difficult to estimate the recoverable amount of an individual
asset, the Group determines the recoverable amount of the asset group based on the asset group to
which the asset belongs. The identification of an asset group is based on whether the main cash inflow
generated by the asset group is independent of the cash inflows of other assets or asset groups.
When the recoverable amount of an asset or asset group is lower than its book value, the Group will write
down its book value to the recoverable amount, and the amount of the write-down will be included in the
current profit and loss, and the corresponding asset impairment provision will be made.
As far as the impairment test of goodwill is concerned, the book value of goodwill formed due to a business
combination shall be apportioned to the relevant asset group in a reasonable manner from the date of
purchase; if it is difficult to apportion it to the relevant asset group, it shall be apportioned to the relevant
asset group. Related asset group combinations. The relevant asset group or asset group combination is
an asset group or asset group combination that can benefit from the synergy effects of the business
combination, and is no larger than the reporting segment determined by the group.
During impairment testing, if there are signs of impairment in an asset group or combination of asset
groups related to goodwill, first conduct an impairment test on the asset group or combination of asset
groups that does not include goodwill, calculate the recoverable amount, and confirm the corresponding
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impairment. Then conduct an impairment test on the asset group or asset group combination containing
goodwill, and compare its book value with the recoverable amount. If the recoverable amount is lower
than the book value, the impairment loss of goodwill is recognized.
Once the asset impairment loss is recognized, it will not be reversed in subsequent accounting periods.
22、Long-term prepaid expenses
The long-term deferred expenses incurred by the Group are measured at actual cost and amortized
evenly over the expected beneficial period. For long-term deferred expense items that cannot benefit
future accounting periods, their amortized value shall be fully included in the current profit and loss.
23、Employee compensation
（1）Range of employee compensation
Employee compensation refers to various forms of remuneration or compensation given by enterprises
to obtain services provided by employees or to terminate labor relations. Employee compensation
includes short-term compensation, post-employment benefits, termination benefits and other long-term
employee benefits. Benefits provided by an enterprise to employees’ spouses, children, dependents,
survivors of deceased employees and other beneficiaries are also employee benefits.
（2）Short-term compensation
During the accounting period when employees provide services, the Group recognizes the actual
employee wages, bonuses, social insurance premiums such as medical insurance premiums, work-
related injury insurance premiums, maternity insurance premiums, and housing provident funds paid for
employees based on prescribed standards and proportions as a liabilities and included in the current profit
and loss or related asset costs.
（3）Post-employment benefits
Post-employment benefit plans include defined contribution plans and defined benefit plans. Among them,
a defined contribution plan refers to a post-employment benefit plan in which the enterprise no longer
bears further payment obligations after depositing a fixed fee into an independent fund; a defined benefit
plan refers to a post-employment benefit plan other than a defined contribution plan.
Defined contribution plans
Defined contribution plans include basic pension insurance, unemployment insurance, etc.
During the accounting period when employees provide services, the deposit amount payable calculated
according to the defined contribution plan is recognized as a liability and included in the current profit and
loss or related asset costs.
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（4）Termination benefits
If the Group provides dismissal benefits to employees, the employee compensation liabilities arising from
the dismissal benefits will be recognized at the earliest of the following two times and included in the
current profit and loss: When the Group cannot unilaterally withdraw the dismissal benefits provided due
to the termination of labor relations plan or layoff proposal; When the Group recognizes costs or expenses
related to restructuring involving payment of termination benefits.
（5）Other long-term benefits
Other long-term employee benefits provided by the Group to employees that meet the conditions of a
defined contribution plan will be handled in accordance with the above-mentioned relevant regulations on
defined contribution plans. If it is in compliance with the defined benefit plan, it shall be handled in
accordance with the relevant provisions on the defined benefit plan mentioned above, but the "changes
caused by the remeasurement of the net liabilities or net assets of the defined benefit plan" in the relevant
employee compensation costs shall be included in the current profit and loss or related Asset cost.
24、Provisions
If the obligations related to contingencies meet the following conditions at the same time, the Group will
recognize them as estimated liabilities:
(1) The obligation is a current obligation borne by the Group;
(2) The performance of this obligation is likely to result in the outflow of economic benefits from the Group;
(3) The amount of the obligation can be measured reliably.
Estimated liabilities are initially measured based on the best estimate of the expenditure required to fulfill
the relevant current obligations, and factors such as risks, uncertainties, and time value of money related
to contingencies are comprehensively considered. If the time value of money has a significant impact, the
best estimate is determined by discounting the relevant future cash outflows. The Group reviews the book
value of estimated liabilities on the balance sheet date and adjusts the book value to reflect the current
best estimate.
If all or part of the expenses required to settle the recognized estimated liabilities are expected to be
compensated by a third party or other parties, the compensation amount can only be recognized
separately as an asset when it is basically certain that it will be received. The amount of compensation
recognized shall not exceed the book value of the liability recognized.
25、Revenue
（1）General principles
The Group recognizes revenue when it fulfills its performance obligations in the contract, that is, when
the customer obtains control of the relevant goods or services.
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If the contract contains two or more performance obligations, the Group will allocate the transaction price
to each individual performance obligation based on the relative proportion of the stand-alone selling price
of the goods or services promised by each individual performance obligation on the contract
commencement date. Revenue is measured at the transaction price of each individual performance
obligation.
When one of the following conditions is met, the performance obligation is performed within a certain
period of time; otherwise, the performance obligation is performed at a certain point in time:
①When the Group performs the contract, the customer obtains and consumes the economic benefits
brought by the Group's performance.
②Customers can control the goods under construction during the performance of the contract by the
Group.
③The goods produced by the Group during the performance of the contract have irreplaceable uses,
and the Group has the right to collect payment for the cumulative performance part completed so far
during the entire contract period.
For performance obligations fulfilled within a certain period of time, the Group recognizes revenue based
on the performance progress within that period of time. When the progress of contract performance cannot
be reasonably determined, if the costs incurred by the Group are expected to be compensated, revenue
will be recognized based on the amount of costs incurred until the progress of contract performance can
be reasonably determined.
For performance obligations fulfilled at a certain point in time, the Group recognizes revenue at the point
when the customer obtains control of the relevant goods or services. When determining whether a
customer has obtained control of goods or services, the Group will consider the following signs:
①The Group has the current right to receive payment for the goods or services, that is, the customer has
current payment obligations for the goods.
②The Group has transferred the legal ownership of the goods to the customer, which means that the
customer already owns the legal ownership of the goods.
③The Group has physically transferred the goods to the customer, that is, the customer has physically
taken possession of the goods.
④The Group has transferred the main risks and rewards of ownership of the commodity to the customer,
that is, the customer has obtained the main risks and rewards of ownership of the commodity.
⑤The customer has accepted the goods or services.
⑥Other signs indicating that the customer has obtained control of the product.
（2）Specific method
The Group's revenue mainly comes from the following business types: sales of products, external
provision of consulting and processing services.
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Products sold The Group produces and sells float glass, photovoltaic glass, engineering glass, solar
industry related products, electronic glass and display device, etc.
For domestic sales, the Group transports the products to the agreed delivery location in accordance with
the agreement or picks it up by the buyer. Revenue is recognized after the buyer confirms receipt or pick-
up.
For export sales, according to the trade terms stipulated in the sales contract, the Group recognizes
revenue after the export products go through export customs declaration procedures and are shipped in
accordance with the contract, or after they are shipped to the designated delivery location.
For solar energy and other industries' photovoltaic power generation revenue,, the Group recognizes the
electricity when it is supplied to the provincial power grid company where each electric field is located,
uses the settled electricity volume confirmed by both parties as the electricity sales for that month, and
uses the on-grid electricity price approved by the National Development and Reform Commission or the
electricity price agreed in the contract as the sales unit price.
The credit periods granted by the Group to customers in various industries are consistent with the
practices of various industries, and there is no significant financing component.
The Group provides product quality assurance for the products sold and recognizes corresponding
estimated liabilities. The Group does not provide any additional services or additional quality assurance,
so the product quality assurance does not constitute a separate performance obligation.
Glass products with sales return clauses, revenue recognition is limited to the amount of accumulated
recognized revenue that is unlikely to result in a significant reversal. The Group recognizes liabilities
based on the expected return amount, and at the same time, recognizes the balance as an asset based
on the book value of the goods expected to be returned when the goods are transferred, minus the
expected costs of recovering the goods (including the impairment of the value of the returned goods).
Provide consulting and processing services
The Group provides external consulting and processing services because customers obtain and consume
the economic benefits brought by the company's performance of the contract while the company performs
the contract. The Group recognizes revenue based on the progress of contract performance. The
progress of contract performance is determined based on the proportion of costs incurred to the estimated
total costs. On the balance sheet date, the Group re-estimates the performance progress of completed
services to reflect changes in performance.
When the Group recognizes revenue based on the progress of completed services, the portion for which
the Group has obtained the unconditional right to receive payment is recognized as accounts receivable,
and the remaining portion is recognized as contract assets. Accounts receivable and contract assets are
recognized as expected credit losses. Loss provisions are recognized as the basis; if the contract price
received or receivable by the Group exceeds the labor services completed, the excess will be recognized
as contract liabilities. The Group's contract assets and contract liabilities under the same contract are
presented on a net basis.
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26、Contract costs
Contract costs include incremental costs incurred to obtain the contract and contract performance costs.
The incremental costs incurred to obtain the contract refer to costs that the company would not have
incurred if it had not obtained the contract (such as sales commissions, etc.). If the cost is expected to be
recovered, the company will recognize it as the contract acquisition cost and as an asset. Other expenses
incurred by the Company to obtain the contract, except for the incremental costs expected to be recovered,
are included in the current profits and losses when incurred.
If the cost incurred to fulfill the contract does not fall within the scope of other accounting standards for
enterprises such as inventory and meets the following conditions, the company will recognize it as an
asset as the contract performance cost:
①The cost is directly related to a current or expected contract, including direct labor, direct materials,
manufacturing overhead (or similar expenses), costs clearly borne by the customer, and other costs
incurred solely because of the contract;
②This cost increases the company’s resources for fulfilling its performance obligations in the future;
③The cost is expected to be recovered.
Assets recognized for contract acquisition costs and assets recognized for contract performance costs
(hereinafter referred to as "assets related to contract costs" ) are amortized on the same basis as the
recognition of revenue from goods or services related to the assets and included in the current profit and
loss.
When the book value of assets related to contract costs is higher than the difference between the following
two items, the company makes impairment provisions for the excess and recognizes it as asset
impairment losses:
①The remaining consideration that the company expects to obtain from the transfer of goods or services
related to the asset;
②The estimated cost that will be incurred to transfer the relevant goods or services.
27、Government subsidies
Government subsidies are recognized when the conditions attached to the government subsidies are met
and can be received.
Government subsidies for monetary assets are measured based on the amount received or receivable.
Government subsidies for non-monetary assets are measured at fair value; if the fair value cannot be
obtained reliably, they are measured at a nominal amount of 1 yuan.
Government subsidies related to assets refer to government subsidies obtained by the Group for the
purchase, construction or other formation of long-term assets; in addition, government subsidies related
to income are regarded as government subsidies.
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For government documents that do not clearly stipulate the subsidy objects and can form long-term assets,
the part of the government subsidy corresponding to the asset value shall be regarded as the government
subsidy related to the asset, and the remaining part shall be regarded as the government subsidy related
to income; if it is difficult to distinguish, the government subsidy shall be regarded as the government
subsidy related to the asset. The whole is regarded as a government subsidy related to income.
Government subsidies related to assets are recognized as deferred income and are included in profits
and losses in installments according to a reasonable and systematic method during the use period of the
relevant assets. If government subsidies related to income are used to compensate for relevant costs or
losses that have already occurred, they will be included in the current profits and losses; if they are used
to compensate for relevant costs or losses in subsequent periods, they will be included in deferred income
and will be included in the relevant costs or losses. The loss is included in the current profit and loss
during the period during which the loss is recognized. Government subsidies measured according to the
nominal amount are directly included in the current profit and loss. The Group adopts a consistent
approach to the same or similar government subsidy business.
Government subsidies related to daily activities shall be included in other income according to the
economic business essence. Government subsidies unrelated to daily activities are included in non-
operating income.
When a confirmed government subsidy needs to be returned, if the book value of the relevant assets is
offset at the time of initial recognition, the book value of the assets is adjusted; if there is a balance of
relevant deferred income, the Carrying Amount of the relevant deferred income is offset, and the excess
is included in the current profit and loss; it is In other cases, it will be directly included in the current profit
and loss.
28、Deferred tax assets and deferred tax liabilities
Income tax includes current income tax and deferred income tax. Except for adjustments to goodwill
arising from business combinations, or deferred income taxes related to transactions or events directly
included in owners' equity, which are included in owners' equity, they are all included in current profits and
losses as income tax expenses.
The Group adopts the balance sheet liability method to recognize deferred income tax based on the
temporary differences between the book values of assets and liabilities on the balance sheet date and
their tax basis.
Each taxable temporary difference is recognized as a related deferred income tax liability, unless the
taxable temporary difference is generated in the following transactions:
(1) Initial recognition of goodwill, or the initial recognition of assets or liabilities arising from a transaction
with the following characteristics: the transaction is not a business combination, and the transaction
affects neither accounting profits nor taxable income when the transaction occurs ( initial recognition
(Except for individual transactions that result in equal amounts of taxable temporary differences and
deductible temporary differences arising from the assets and liabilities) ;
(2) For taxable temporary differences related to investments in subsidiaries, joint ventures and associates,
the time of reversal of the temporary differences can be controlled and the temporary differences are likely
not to be reversed in the foreseeable future.
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For deductible temporary differences, deductible losses and tax credits that can be carried forward to
future years, the Group shall use it to offset the deductible temporary differences, deductible losses and
tax credits to the extent that it is probable that it will be available. The deferred income tax assets
generated will be recognized to the limit of the future taxable income, unless the deductible temporary
difference is generated in the following transactions:
(1) The transaction is not a business combination, and when the transaction occurs, it affects neither
accounting profits nor taxable income (a single transaction in which the initial recognition of assets and
liabilities results in an equal amount of taxable temporary differences and deductible temporary
differences are excepted);
(2) For deductible temporary differences related to investments in subsidiaries, joint ventures and
associates, and if the following conditions are met at the same time, the corresponding deferred income
tax assets are recognized: the temporary differences are likely to be reversed in the foreseeable future,
And it is likely to obtain taxable income in the future that can be used to offset deductible temporary
differences.
On the balance sheet date, the Group's deferred income tax assets and deferred income tax liabilities are
measured at the applicable tax rate during the period when the asset is expected to be recovered or the
liability is settled, and the income tax impact of the expected method of recovering the asset or settling
the liability on the balance sheet date is reflected.
On the balance sheet date, the Group reviews the book value of deferred income tax assets. If it is
probable that sufficient taxable income will not be available in future periods to offset the benefits of
deferred tax assets, the carrying amount of the deferred tax assets will be reduced. The amount of the
write-down is reversed when it is probable that sufficient taxable income will be obtained.
On the balance sheet date, deferred income tax assets and deferred income tax liabilities are presented
as the net amount after offsetting when the following conditions are met at the same time:
( 1 ) The tax payer within the group has the legal right to settle current income tax assets and current
income tax liabilities on a net basis;
( 2 ) Deferred income tax assets and deferred income tax liabilities are related to income taxes levied by
the same tax collection and administration department on the same taxpayer within the group.
29、Leases
（1）Identification of leases
On the contract inception date, the Group, as a lessee or lessor, evaluates whether the customer in the
contract has the right to obtain substantially all the economic benefits generated from the use of the
identified assets during the use period, and has the right to direct the use of the identified assets during
the use period. If a party in a contract transfers the right to control the use of one or more identified assets
within a certain period in exchange for consideration, the Group determines that the contract is a lease or
contains a lease.
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（2）The Group acts as lessee
On the commencement date of the lease period, the Group recognizes right-of-use assets and lease
liabilities for all leases, except for simplified short-term leases and low-value asset leases.
The accounting policies for right-of-use assets are shown in Note.
Lease liabilities are initially measured based on the present value of the unpaid lease payments at the
beginning of the lease term using the interest rate implicit in the lease. If the interest rate implicit in the
lease cannot be determined, the incremental borrowing rate is used as the discount rate. Lease payments
include: fixed payments and substantive fixed payments, if there are lease incentives, the amount related
to lease incentives is deducted; variable lease payments that depend on the index or ratio; the exercise
price of the purchase option, provided that the lessee is reasonable It is certain that the option will be
exercised; the amount required to be paid to exercise the option to terminate the lease, provided that the
lease term reflects that the lessee will exercise the option to terminate the lease; and the amount expected
to be paid based on the residual value of the guarantee provided by the lessee. Subsequently, the interest
expense of the lease liability for each period during the lease term is calculated based on the fixed periodic
interest rate and included in the current profit and loss. Variable lease payments that are not included in
the measurement of lease liabilities are included in the current profit and loss when actually incurred.
Short term lease
A short-term lease refers to a lease with a lease term of no more than 12 months on the start date of the
lease period, except for leases that include a purchase option.
The Group will include the lease payments of short-term leases into the relevant asset costs or current
profits and losses on a straight-line basis during each period of the lease term.
Low value asset leasing
Low-value asset leases refer to leases where the value of a single leased asset is less than 100,000 yuan
when it is a brand-new asset.
The Group will include the lease payments for low-value asset leases into the relevant asset costs or
current profits and losses on a straight-line basis during each period of the lease term.
For low-value asset leases, the Group chooses to adopt the above simplified treatment method based on
the specific circumstances of each lease.
Lease changes
If a lease changes and the following conditions are met at the same time, the Group will account for the
lease change as a separate lease: ① The lease change expands the scope of the lease by adding the
right to use one or more leased assets; ② Increased The consideration is equivalent to the individual
price of the extended portion of the lease, adjusted for the circumstances of the contract.
If the lease change is not accounted for as a separate lease, on the effective date of the lease change,
the Group re-allocates the consideration of the contract after the change, re-determines the lease term,
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and calculates it based on the changed lease payment and the revised discount rate. Present value
remeasurement of the lease liability.
If a change in the lease results in a reduction in the scope of the lease or a shortening of the lease period,
the Group will accordingly reduce the book value of the right-of-use assets, and include the gains or
losses related to the partial or complete termination of the lease into the current profits and losses.
If other lease changes result in the remeasurement of lease liabilities, the Group will adjust the book value
of the right-of-use assets accordingly.
（3）The Group acts as lessor
When the Group acts as a lessor, leases that substantially transfer all risks and rewards related to asset
ownership are recognized as finance leases, and leases other than finance leases are recognized as
operating leases.
Financial lease
In financial leases, the Group's net lease investment on the date of the lease term is recorded as the
accounting value of finance lease receivables. The net lease investment is the unguaranteed residual
value and the lease receivables that have not been received on the date of the lease term are calculated
based on the amount included in the lease. The sum of present values discounted with interest rates. As
the lessor, the Group calculates and recognizes interest income for each period during the lease term
based on fixed periodic interest rates. Variable lease payments obtained by the Group as a lessor that
are not included in the measurement of the net lease investment are included in the current profit and
loss when actually incurred.
The derecognition and impairment of finance lease receivables shall be accounted for in accordance with
the provisions of "Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement
of Financial Instruments" and "Accounting Standards for Business Enterprises No. 23 - Transfer of
Financial Assets".
Operating lease
For rents in operating leases, the Group recognizes current profits and losses according to the straight-
line method in each period during the lease term. The initial direct expenses incurred in connection with
the operating lease shall be capitalized, amortized during the lease period on the same basis as the rental
income recognition, and included in the current profit and loss in installments. Variable lease payments
related to operating leases that are not included in the lease receipts are included in the current profit and
loss when they actually occur.
Lease changes
If an operating lease changes, the Group will account for it as a new lease from the effective date of the
change, and the amount of lease receipts received in advance or receivable related to the lease before
the change is regarded as the amount of receipts from the new lease.
If a financial lease changes and the following conditions are met at the same time, the Group will account
for the change as a separate lease: ① The change expands the scope of the lease by adding the right
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to use one or more leased assets; ② The increased consideration The amount is equivalent to the
individual price of the extended portion of the lease adjusted for the circumstances of the contract.
If a financial lease is changed and is not accounted for as a separate lease, the Group will treat the
changed lease under the following circumstances: ① If the change takes effect on the lease
commencement date, the lease will be classified as an operating lease, and the Group will From the
effective date of the lease change, it will be accounted for as a new lease, and the net lease investment
before the effective date of the lease change will be used as the book value of the leased asset; ② If the
change takes effect on the lease commencement date, the lease will be classified as financing For leases,
the Group shall conduct accounting treatment in accordance with the provisions of "Accounting Standards
for Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments" regarding
modification or renegotiation of contracts.
30、Right-of-use assets
（1）Right-of-use asset recognition conditions
Right-of-use assets refer to the Group's rights as a lessee to use the leased assets during the lease term.
On the commencement date of the lease term, the right-of-use asset is initially measured at cost. This
cost includes: the initial measurement amount of the lease liability; the lease payment amount paid on or
before the start date of the lease term, if there is a lease incentive, deduct the amount related to the lease
incentive that has been enjoyed; the initial direct costs incurred by the Group as a lessee; The Group, as
the lessee, expects to incur costs for dismantling and removing the leased assets, restoring the site where
the leased assets are located, or restoring the leased assets to the state agreed upon in the lease terms.
As a lessee, the Group recognizes and measures costs such as demolition and restoration in accordance
with Accounting Standards for Business Enterprises No. 13 - Contingencies. Adjustments are made
subsequently for any subsequent remeasurement of the lease liability.
（2）Depreciation method for right-of-use assets
The Group uses the straight-line method to calculate depreciation. If the Group, as the lessee, can
reasonably determine that it will obtain ownership of the leased asset when the lease term expires,
depreciation will be accrued over the remaining useful life of the leased asset. If it is not reasonably certain
that the ownership of the leased asset will be obtained at the expiration of the lease term, depreciation
will be accrued during the shorter of the lease term and the remaining useful life of the leased asset.
（3）Note for the impairment testing method and impairment provision accrual method for right-of-use assets.
31、Safety production costs
According to relevant documents from the Ministry of Finance and the State Administration of Work Safety,
the Group's subsidiaries engaged in the production and sales of polysilicon are based on the actual
operating income of the previous year and use an excess regressive method to withdraw production safety
expenses monthly:
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(a) If the operating income is 10 million yuan or less, 4.5% shall be withdrawn;
(b) The portion of operating income between RMB 10 million and RMB 100 million (inclusive) shall be
withdrawn at 2.25%;
(c) The portion of operating income between RMB 100 million and RMB 1 billion (inclusive) shall be
withdrawn at 0.55 % ;
(d) For the portion of operating income above RMB 1 billion, 0.2 % will be withdrawn.
Safety production expenses are mainly used to improve, transform and maintain safety protection
equipment and facilities. Safety production expenses are included in the cost of related products or current
profits and losses when withdrawn, and are also recorded in special reserve accounts. When in use,
expenditures within the prescribed scope of use will be directly offset against the special reserve when
the expenditures are incurred; for capital expenditures, expenditures incurred through the accounts of
projects under construction will be used until the project is completed and reaches the scheduled
availability. When in use, they are transferred to fixed assets, and the special reserves are offset according
to the cost of forming the fixed assets, and the corresponding amount of accumulated depreciation is
recognized at the same time. This fixed asset will no longer be depreciated in future periods.
32、Significant accounting judgments and estimates
The Group continuously evaluates the important accounting estimates and key assumptions adopted
based on historical experience and other factors, including reasonable expectations for future events. The
important accounting estimates and key assumptions that are likely to cause a significant adjustment in
the book value of assets and liabilities in the next fiscal year are as follows:
Classification of financial assets
The Group's significant judgments involved in determining the classification of financial assets include
analysis of business models and contractual cash flow characteristics.
The Group determines the business model for managing financial assets at the level of financial asset
portfolios. Factors considered include the way to evaluate and report the performance of financial assets
to key management personnel, the risks that affect the performance of financial assets and their
management methods, and relevant business managers. How to get paid, etc.
When the Group evaluates whether the contractual cash flows of financial assets are consistent with the
basic lending arrangements, it makes the following main judgments: whether the time distribution or
amount of the principal may change during the duration due to early repayment; whether the interest is
only Includes time value of money, credit risk, other fundamental lending risks and consideration against
costs and profits. For example, whether the amount of early repayment only reflects the unpaid principal
and interest based on the unpaid principal, as well as reasonable compensation paid for early termination
of the contract.
Measurement of expected credit losses on accounts receivable
The Group calculates the expected credit losses of accounts receivable through the default risk exposure
of accounts receivable and the expected credit loss rate, and determines the expected credit loss rate
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based on the probability of default and the loss given default rate. When determining the expected credit
loss rate, the Group uses internal historical credit loss experience and other data, and adjusts historical
data based on current conditions and forward-looking information. When considering forward-looking
information, the Group uses indicators including the risk of economic downturn, changes in the external
market environment, technical environment and customer conditions. The Group regularly monitors and
reviews assumptions related to the calculation of expected credit losses.
Impairment of Fixed Assets and Construction in Progress
As of the balance sheet date, the Company assesses whether there are any indications of impairment for
non-current assets other than financial assets. When there are indications that the carrying amount of an
asset cannot be recovered, impairment testing is conducted.
Impairment occurs when the carrying amount of an asset or asset group exceeds its recoverable amount,
which is the higher of the net amount after deducting disposal costs from fair value and the present value
of estimated future cash flows. The net amount after deducting disposal costs from fair value is determined
by referencing the sales agreement prices of similar assets in fair transactions or observable market prices,
minus incremental costs directly attributable to the asset's disposal. Significant judgments are made
regarding the expected future cash flow present value, including the asset's (or asset group's) output,
selling price, relevant operating costs, and the discount rate used in the present value calculation. The
Company utilizes all relevant information available to estimate the recoverable amount, including
forecasts of output, selling prices, and related operating costs based on reasonable and supportable
assumptions.
Goodwill impairment
The Group assesses whether goodwill is impaired at least annually. This requires an estimate of the value
in use of the asset group to which goodwill is assigned. When estimating value in use, the Group needs
to estimate future cash flows from the asset group and select an appropriate discount rate to calculate
the present value of future cash flows.
R&D expenditure
When determining the amount to be capitalized, management must make assumptions regarding the
expected future cash generation of the asset, the discount rate that should be applied, and the expected
period of benefit.
Deferred tax assets
Deferred tax assets should be recognized for all unused tax losses to the extent that it is probable that
sufficient taxable profits will be available against which the losses can be utilised. This requires
management to use a lot of judgment to estimate the timing and amount of future taxable profits, combined
with tax planning strategies, to determine the amount of deferred income tax assets that should be
recognized.
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33、Changes in important accounting policies and accounting estimates
（1）Important changes in accounting policies
Accounting Standards for Business Enterprises Interpretation No. 16
The Ministry of Finance issued the "Interpretation No. 16 of Accounting Standards for Business
Enterprises" (Financial Accounting [2022] No. 31) in November 2022 (hereinafter referred to as
"Interpretation No. 16").
Interpretation No. 16 stipulates that for a company that is not a business combination, the transaction
affects neither accounting profits nor taxable income (or deductible losses) when the transaction occurs,
and the initial recognition of assets and liabilities results in equal amounts of taxable temporary differences
and For a single transaction with deductible temporary differences, taxable temporary differences and
deductible temporary differences arising from the initial recognition of assets and liabilities shall be
determined in accordance with relevant provisions such as "Accounting Standards for Business
Enterprises No. 18 - Income Tax". The corresponding deferred income tax liabilities and deferred income
tax assets are recognized respectively when the transaction occurs. For the above-mentioned
transactions that occurred between the beginning of the earliest period for the presentation of financial
statements when the above provisions are first implemented and the implementation date of this
interpretation, the enterprise shall, in accordance with the above provisions, adjust the cumulative impact
number to the opening retained earnings and other expenses for the earliest period for presentation of
the financial statements in accordance with the above provisions. Relevant financial statement items. The
above accounting treatment regulations will be effective from 1 January, 2023.
The Group's implementation of the above accounting policy changes will have no significant impact on
the financial statements of 31 December, 2022, 31 December, 2023, and 2023 .
IV. Taxation
1、Main tax types and tax rates
Category Taxable basis Tax rate
Taxable value-added amount (Tax
payable is calculated using the taxable
Value-added tax (“VAT”) sales amount multiplied by the applicable 3%-13%
tax rate less deductible VAT input of the
current period)
Education surtax VAT paid 5%
Urban maintenance and construction
VAT paid 1%-7%
tax
Income tax Taxable income 16.5% , 25%
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2、Tax incentives and approvals
Tianjin CSG Energy-Saving Glass Co., Ltd. (“Tianjin Energy Conservation”) passed the high-tech
enterprise qualification review in 2021 and has obtained the "High-tech Enterprise Certificate", which is
valid for three years. 15% tax rate will be applicable within three years starting from 2021.
Dongguan CSG Architectural Glass Co., Ltd. (“Dongguan CSG”) passed the high-tech enterprise
qualification reexamination in 2022 and has obtained the "High-tech Enterprise Certificate", which is valid
for three years, and 15% tax rate is applicable within three years starting from 2022.
Wujiang CSG East China Architectural Glass Co., Ltd. (“Wujiang CSG Engineering”) passed the high-
tech enterprise qualification review in 2023 and has obtained the "High-tech Enterprise Certificate", which
is valid for three years, starting from 2023.It applies to 15% tax rate for three years since 2023.
Dongguan CSG Solar Glass Co., Ltd. (“Dongguan CSG Solar”) passed the high-tech enterprise
qualification review in 2023 and has obtained the "High-tech Enterprise Certificate", which is valid for
three years and 15% Income tax rate is adopted within three years starting from 2023.
Yichang CSG Polysilicon Co., Ltd. (“Yichang CSG Polysilicon”) passed the high-tech enterprise
qualification review in 2023 and has obtained the "High-tech Enterprise Certificate", which is valid for
three years, and 15% Income tax rate is adopted within three years starting from 2023.
Dongguan CSG PV-tech Co., Ltd. (“Dongguan CSG PV-tech”) passed the high-tech enterprise
qualification review in 2022 and has obtained the "High-tech Enterprise Certificate", which is valid for
three years, and 15% Income tax rate is adopted within three years starting from 2022.
Hebei Shichuang Glass Co., Ltd. (“Hebei Shichuang”) passed the high-tech enterprise qualification review
in 2022 and has obtained the "High-tech Enterprise Certificate", which is valid for three years and 15%
Income tax rate is adopted within three years starting from 2022. .
Wujiang CSG Glass Co., Ltd. (“Wujiang CSG”) passed the high-tech enterprise qualification review in
2023 and has obtained the "High-tech Enterprise Certificate", which is valid for three years and 15%
Income tax rate is adopted within three years starting from 2023.
Xianning CSG Glass Co Ltd. (“Xianning CSG”) passed the high-tech enterprise qualification review in
2023 and has obtained the "High-tech Enterprise Certificate", which is valid for three years and 15%
Income tax rate is adopted within three years starting from 2023.
Xianning CSG Energy-Saving Glass Co., Ltd. (“Xianning CSG Energy-Saving”) passed the high-tech
enterprise qualification review in 2021 and has obtained the "High-tech Enterprise Certificate", which is
valid for three years. 15% Income tax rate is adopted within three years starting from 2021.
Yichang CSG Photoelectric Glass Co., Ltd. (“Yichang CSG Photoelectric”) passed the high-tech
enterprise qualification review in 2021 and has obtained the "High-tech Enterprise Certificate", which is
valid for three years. 15% income tax rate will be applicable within three years starting from 2021.
Yichang CSG Display Co., Ltd (“Yichang CSG Display”) passed the high-tech enterprise qualification
review in 2021 and has obtained the "High-tech Enterprise Certificate", which is valid for three years. 15%
income tax rate will be applicable within three years starting from 2021.
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Qingyuan CSG New Energy-Saving Materials Co., Ltd. (“Qingyuan CSG Energy-Saving”) passed the
high-tech enterprise qualification review in 2022 and has obtained the "High-tech Enterprise Certificate",
which is valid for three years.15% income tax rate will be applied for three years starting form 2022.
Hebei CSG Glass Co Ltd. (“Hebei CSG”) passed the high-tech enterprise qualification review in 2021 and
has obtained the "High-tech Enterprise Certificate", which is valid for three years. 15% corporate income
tax rate will be applicable within three years starting from 2021.
Shenzhen CSG Applied Technology Co Ltd. (“Shenzhen Technology”) passed the high-tech enterprise
qualification review in 2021 and has obtained the "High-tech Enterprise Certificate", which is valid for
three years. 15% corporate income tax rate will be applicable within three years starting from 2021.
Xianning CSG Photoelectric Glass Co., Ltd. (“Xianning Photoelectric”) passed the high-tech enterprise
qualification reexamination in 2022 and has obtained the "High-tech Enterprise Certificate", which is valid
for three years and applies 15% Income tax rate of enterprises within three years starting from 2022.
Dongguan CSG Crystal Yuxin Materials Co., Ltd. ("Dongguan Jing Yu Company") was recognized as a
high-tech enterprise in 2021 and has obtained the "High-tech Enterprise Certificate", which is valid for
three years and 15% corporate income tax rate is applicable within three years starting from 2021
Zhaoqing CSG Energy Saving Glass Co., Ltd. (hereinafter referred to as "Zhaoqing Energy Saving
Company") was recognized as a high-tech enterprise in 2022 and has obtained the "High-tech Enterprise
Certificate", which is valid for three years and 15% Income tax rate is applied to enterprises within three
years starting from 2022.
Sichuan CSG Energy Conservation Glass Co., Ltd. (“Sichuan CSG Energy Conservation”) enjoys the
preferential corporate income tax rate for the Western Development Project. This year, the corporate
income tax rate is 15%.
Chengdu CSG Glass Co., Ltd. (“Chengdu CSG”) enjoys the preferential corporate income tax rate for the
Western Development Initiative. This year, the corporate income tax rate is 15%.
Xi'an CSG Energy Saving Glass Technology Co., Ltd. (hereinafter referred to as "Xi'an Energy Saving
Company") enjoys the preferential corporate income tax for the development of the western region. This
year, the corporate income tax rate is 15%.
Guangxi CSG New Energy Materials Technology Co., Ltd. (hereinafter referred to as "Guangxi New
Energy Materials Company") enjoys the preferential corporate income tax for the Western Development
Project. This year, the corporate income tax rate is 15%.
Qinghai CSG Risheng New Energy Technology Co., Ltd. (hereinafter referred to as "Qinghai New Energy
Company") enjoys the preferential corporate income tax for the Western Development Project. This year,
the corporate income tax rate is 15%.
Yichang CSG New Energy Co., Ltd. (hereinafter referred to as "Yichang New Energy Company"),
Zhaoqing CSG New Energy Technology Co., Ltd. (hereinafter referred to as "Zhaoqing New Energy
Company"), Xianning CSG Photovoltaic New Energy Co., Ltd. (hereinafter referred to as "Xianning
Photovoltaic Company" ) and Zhanjiang CSG New Energy Co., Ltd. (hereinafter referred to as "Zhanjiang
New Energy Company") are public infrastructure projects supported by the state as stipulated in Article
87 of the "Enterprise Income Tax Law Implementation Regulations" and can enjoy " The preferential tax
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CSG Annual Report 2023
policy of "Three years of exemption and three years of half reduction" means that starting from the tax
year in which the first production and operation income is obtained, corporate income tax is exempted
from the first to the third year, and the corporate income tax is halved from the fourth to the sixth year.
Qingyuan CSG Quartz Material Co., Ltd. (hereinafter referred to as "Qingyuan Quartz Company") enjoys
corporate income tax preferential treatment for small and micro enterprises. According to the Ministry of
Finance and the State Administration of Taxation's Announcement No. 6 of 2023 "The Ministry of Finance
and the State Administration of Taxation on Small and Micro Enterprises and Individual Industrial and
Commercial Households" "Announcement on Preferential Income Tax Policies", from 1 January, 2023 to
31 December, 2024, for small and low-profit enterprises, the annual taxable income does not exceed RMB
1 million, a reduced rate of 25% will be included in the taxable income. , pay corporate income tax at a
tax rate of 20%. According to the Announcement No. 13 of 2022 of the Ministry of Finance and the State
Administration of Taxation, "Announcement of the Ministry of Finance and the State Administration of
Taxation on Further Implementing Preferential Income Tax Policies for Small and Micro Enterprises", from
1January, 2022 to 31 December, 2024, the annual taxable income For the amount exceeding RMB 1
million but not exceeding RMB 3 million, the income shall be included in the taxable income at a reduced
rate of 25%, and the corporate income tax shall be paid at a tax rate of 20%. According to the
Announcement No. 12 of 2023 of the Ministry of Finance and the State Administration of Taxation,
"Announcement on Further Supporting the Development of Small and Micro Enterprises and Individual
Industrial and Commercial Households on Tax Policies", small and low-profit enterprises are calculated
at a reduced rate of 25% on taxable income and a tax rate of 20% The corporate income tax payment
policy will continue to be implemented until 31 December, 2027.
Anhui CSG Quartz Material Co., Ltd. (hereinafter referred to as "Anhui Quartz Company") was recognized
as a high-tech enterprise in 2023 and has obtained the "High-tech Enterprise Certificate". The certificate
is valid for three years and 15 income tax rate is applicable for years starting from 2023. .
Anhui CSG New Energy Materials Technology Co., Ltd. (hereinafter referred to as "Anhui New Energy
Company") was recognized as a high-tech enterprise in 2023 and has obtained the "High-tech Enterprise
Certificate". The certificate is valid for three years, starting from 2023.15% corporate income tax rate is
applied.
According to the "Announcement on the Additional Value-Added Tax Deduction Policy for Advanced
Manufacturing Enterprises" (Announcement No. 43, 2023, of the Ministry of Finance and the State
Administration of Taxation), the company's high-tech enterprises will, from January 1, 2023 to December
31, 2027 On the same day, advanced manufacturing enterprises are allowed to deduct an additional 5%
of the deductible input tax for the current period to deduct the value-added tax payable.
V. Notes to Consolidated Financial Statements
1、Cash at bank and on hand
Item 31 December 2023 31 December 2022
Cash at bank 3,051,261,655 3,242,318,251
Other Currency Funds 25,512,563 1,362,289,528
Total 3,076,774,218 4,604,607,779
147
CSG Annual Report 2023
Including: Total overseas deposits 31,005,196 52,079,105
At the end of the period, the amount of money used for deposits and freezes by this group was RMB
25,512,563.
2、Notes receivable
31 December 2023 31 December 2022
Item Carrying Carrying
Provision Book value Provision Book value
Amount Amount
Bank acceptance 1,510,946,903 - 1,510,946,903 156,943,437 - 156,943,437
Commercial
84,258,766 1,685,175 82,573,591 - - -
acceptance
Total 1,595,205,669 1,685,175 1,593,520,494 156,943,437 - 156,943,437
（1）Notes receivable pledged at the end of the period
Item Pledged amount
Bank Acceptance 1,157,485,085
Total 1,157,485,085
（2）Notes receivable that have been endorsed or discounted by the Group but have not yet matured
at the end of the period
Item Amount not derecognized at the end of the period
Bank Acceptance 268,377,108
Commercial Acceptance 27,583,198
Total 295,960,306
（3）Classification by bad debt accrual method
31 December 2023
Category Carrying Amount Provision
Expected credit Book value
Amount Proportion(%) Amount
loss rate (%)
Provision for bad debts
- - - - -
on an individual basis
Provision for bad debts
1,595,205,669 100 1,685,175 0.11 1,593,520,494
on a portfolio basis
Including:
Commercial Acceptance 84,258,766 5 1,685,175 2 82,573,591
Bank Acceptance 1,510,946,903 95 - - 1,510,946,903
Total 1,595,205,669 100 1,685,175 0.11 1,593,520,494
Continued:
148
CSG Annual Report 2023
31 December 2022
Category Carrying Amount Provision for bad debts
Expected credit loss Book value
Amount Proportion(%) Amount
rate (%)
Provision for bad debts on
- - - - -
an individual basis
Provision for bad debts
156,943,437 100 - - 156,943,437
on a portfolio basis
Including: - - -
Commercial Acceptance - - -
Bank Acceptance 156,943,437 100 - - 156,943,437
Total 156,943,437 100 - - 156,943,437
Provision amount
1 January 2023 -
Accrual for this period 1,685,175
31 December 2023 1,685,175
（4）Bad debt provisions accrued, recovered or reversed in the current period
（5）There is no actual write-off of notes receivable in this period
3、Accounts receivable
（1）Disclosure by age
Aging 31 December 2023 31 December 2022
Within 1 year 1,799,401,050 1,092,590,056
1 to 2 years 42,338,430 167,876,479
2 to 3 years 156,855,077 51,281,059
over 3 years 81,310,642 48,541,402
Total 2,079,905,199 1,360,288,996
Less: provision for
198,108,791 180,296,212
bad debts
Total 1,881,796,408 1,179,992,784
（2）Classified disclosure according to bad debt accrual method
31 December 2023
Category Carrying Amount Provision
Proportion Expected credit loss Book value
Amount Amount
(%) rate (%)
Provision for bad debts on
176,357,014 8 160,074,840 91 16,282,174
an individual basis
149
CSG Annual Report 2023
Provision for bad debts
1,903,548,185 92 38,033,951 2 1,865,514,234
on a portfolio basis
in:
Receivables from unrelated
1,903,548,185 92 38,033,951 2 1,865,514,234
parties
Total 2,079,905,199 100 198,108,791 10 1,881,796,408
Continued:
31 December 2022
Category Carrying Amount Provision
Expected credit loss Book value
Amount Proportion(%) Amount
rate (%)
Provision for bad debts on
196,468,864 14 157,019,809 80 39,449,055
an individual basis
Provision for bad debts
1,163,820,132 86 23,276,403 2 1,140,543,729
on a portfolio basis
Including:
Receivables from
1,163,820,132 86 23,276,403 2 1,140,543,729
unrelated parties
Total 1,360,288,996 100 180,296,212 13 1,179,992,784
Accounts receivable with provision for bad debts on an individual basis
31 December 2023
Name Provision Expected
Carrying
for bad credit loss Basis for accrual
Amount
debts rate (%)
Mainly because the commercial acceptance bills
issued by Evergrande and its subsidiaries that were
Total of
endorsed by customers could not be paid and were
single-
transferred from notes receivable to accounts
item 176,357,014 160,074,840 91
receivable,and part of the receivables from
accrual
customers due to business disputes or customer
customers
business deterioration, part or full provision for bad
debts.
Continued:
31 December 2022
Name Carrying Provision for Expected credit
Basis for accrual
Amount bad debts loss rate (%)
Mainly because the commercial
acceptance bills issued by
Evergrande and its subsidiaries that
were endorsed by customers could
Total of
not be paid and were transferred
single-item
196,468,864 157,019,809 80 from notes receivable to accounts
accrual
receivable, and part of the
customers
receivables from customers due to
business disputes or customer
business deterioration, part or full
provision for bad debts.
150
CSG Annual Report 2023
Accounts receivable with provision for bad debts on a group basis
31 December 2023 31 December 2022
Expected Provision Expected
Provision for
Carrying Amount credit loss Carrying Amount for bad credit loss
bad debts
rate (%) debts rate (%)
Combined
1,903,548,185 38,033,951 2 1,163,820,132 23,276,403 2
customers
Portfolio accrual items: accounts receivable from non-related parties
（3）Bad debt provisions accrued, recovered or reversed in the current period
Bad debt provision amount
1 January 2023 180,296,212
Accrual for this period 46,641,194
Withdraw or transfer in this period 27,694,156
Write-off in this period 1,134,459
31 December 2023 198,108,791
（4）Actual write-off of accounts receivable in the current period
Item Write-off amount
Accounts receivable actually written off 1,134,459
（5）The top five companies with closing balances of accounts receivable collected by debtors
The total amount of the top five accounts receivable at the end of the period collected by the debtors in
this period is 801,041,861 yuan, accounting for 39% of the total ending balance of accounts receivable.
The corresponding summary amount of the ending balance of bad debt provisions is 16,020,837 yuan.
4、Receivables Financing
Item 31 December 2023 31 December 2022
Bank acceptance 529,945,623 1,095,412,643
Bank acceptance measured at fair value 529,945,623 1,095,412,643
The Group discounts and endorses part of the bank acceptance bills based on its daily capital
management needs, so the subsidiary's bank acceptance bills are classified as financial assets measured
at fair value with changes included in other comprehensive income.
The Group has no single bank acceptance bill for which impairment provision is made. At the end of the
current period, the Group believes that there is no significant credit risk in the bank acceptance bills held
and no significant losses will be incurred due to bank defaults.
151
CSG Annual Report 2023
5、Prepayments
（1）Prepayments are disclosed based on aging
31 December 2023 31 December 2022
Aging
Amount Proportion% Amount Proportion%
Within 1 year 155,075,823 100 182,578,314 100
1 to 2 years 395,256 377,211
2 to 3 years 1,766 153,800
over 3 years 3,800 520,498
Total 155,476,645 100 183,629,823 100
（2）The top five units with closing balance of prepayments collected by prepayment objects
Percentage in total advances to
Item 31 December 2023
suppliers balance
Total prepayments of the top five
87,612,600 56
balances
6、Other receivables
Item 31 December 2023 31 December 2022
Other receivables 177,957,033 193,847,322
（1）Disclosure by age
Balance at the end of the previous
Aging 31 December 2023
year
Within 1 year (including 1 year) 22,612,560 27,945,528
1 to 2 years 1,819,789 31,332,255
2 to 3 years 20,535,190 1,421,606
3 to 4 years 1,058,546 563,830
4 to 5 years 450,650 2,066,855
More than 5 years 198,440,032 196,622,842
Total 244,916,767 259,952,916
(2) Disclosure according to the nature of the payment
Item 31 December 2023 31 December 2022
Talent Fund Receivable (Note ) 171,000,000 171,000,000
Disbursements 40,125,087 49,075,321
Advance payment 10,366,164 10,366,164
Refundable deposits 9,033,990 16,456,690
152
CSG Annual Report 2023
Reserve loan 594,514 963,222
Others 13,797,012 12,091,519
Total 244,916,767 259,952,916
Less: provision for bad debts 66,959,734 66,105,594
Total 177,957,033 193,847,322
Note: This fund is a subsidy fund given to the group by the government. The company entrusted its wholly-
owned subsidiary Yichang CSG Silicon Materials Co., Ltd. to collect the fund. The Yichang High-tech
Zone Management Committee also paid the full amount to Yichang CSG Silicon in 2014. After receiving
the funds, Yichang CSG Silicon Materials Co., Ltd. transferred the full amount to Yichang Hongtai Real
Estate Co., Ltd. without appropriate approval by the then company's board of directors and other
competent authorities. Yichang CSG Silicon Materials Co., Ltd. received the above funds from February
21, 2014 to April 28, 2014 and then transferred the entire amount to Yichang Hongtai Real Estate Co.,
Ltd.
The company filed an infringement compensation lawsuit against Zeng Nan and others and Yichang
Hongtai Real Estate Co., Ltd. on December 15, 2021, and the Shenzhen Intermediate People's Court
officially accepted the lawsuit on January 28, 2022. The first instance of the case was completed in
Shenzhen Intermediate People's Court on June 21, 2022, and is currently awaiting judgment.
(3) Bad debt provision accrual
Bad debt provisions in the first stage at the end of the period
Expected credit
loss rate in the Provision for bad
Category Carrying Amount Book value
next 12 months debts
(%)
Provision for bad debts on an
individual basis
Provision for bad debts on a
56,522,786 2 1,050,923 55,471,863
portfolio basis
Unrelated party combination 56,522,786 2 1,050,923 55,471,863
There is no provision for bad debts in the second stage at the end of the period
Bad debt provisions in the third stage at the end of the period
Expected credit
loss rate Provision for bad
Category Carrying Amount Book value
throughout the debts
duration (%)
Provision for bad debts on an
individual basis
Company 1 171,000,000 30 51,300,000 119,700,000
Company 2 10,366,164 100 10,366,164 -
Company 3 5,570,340 50 2,785,170 2,785,170
Individual 4 322,905 100 322,905 -
Company 5 1,134,572 100 1,134,572 -
153
CSG Annual Report 2023
Total 188,393,981 35 65,908,811 122,485,170
Bad debt provisions in the first stage at the end of the previous year
Expected credit
loss rate in the Provision for bad
Category Carrying Amount Book value
next 12 months debts
(%)
Provision for bad debts on an
individual basis
Provision for bad debts on a
72,693,507 2 1,331,355 71,362,152
portfolio basis
Unrelated party combination 72,657,507 2 1,330,635 71,326,872
Related party portfolio 36,000 2 720 35,280
There is no provision for bad debts in the second stage at the end of the previous year
Bad debt provisions in the third stage at the end of the previous year
Expected credit
loss rate Provision for bad
Category Carrying Amount Book value
throughout the debts
duration (%)
Provision for bad debts on an
individual basis
Company 1 171,000,000 30 51,300,000 119,700,000
Company 2 10,366,164 100 10,366,164 -
Company 3 5,570,340 50 2,785,170 2,785,170
Individual 4 322,905 100 322,905 -
Total 187,259,409 35 64,774,239 122,485,170
(4) Bad debt provisions accrued, recovered or reversed in the current period
Stage 1 Stage 2 Stage 3
Provision for bad Expected credit losses Expected credit losses
Expected credit Total
debts throughout the entire throughout the lifetime
losses over the
duration (no credit (credit impairment has
next 12 months
impairment has occurred) occurred)
1 January 2023 1,331,355 - 64,774,239 66,105,594
Carrying amount on 1st
January 2023 that in
this period:
Accrual for this period 314,469 - 1,134,572 1,449,041
Transferred in this
594,901 - - 594,901
period
Sales in this period - - - -
Write-off in this period - - - -
Other changes - - - -
31 December 2023 1,050,923 - 65,908,811 66,959,734
154
CSG Annual Report 2023
(5) No other receivables actually written off in this period
(6) Top five companies with closing balance of other receivables collected by debtors
Proportion to the
Ending balance
Company Nature of Closing balance of total closing
Aging of bad debt
name payment other receivables balance of other
provision
receivables (%)
independent More than 5
Company 1 171,000,000 70 51,300,000
third party years
independent
Company 2 14,000,000 2-3 years 6 280,000
third party
independent More than 5
Company 3 11,556,004 5 231,120
third party years
independent More than 5
Company 4 10,366,164 4 10,366,164
third party years
independent
Company 5 5,570,340 2-3 years 2 2,785,170
third party
Total 212,492,508 87 64,962,454
7、Inventories
（1）Inventory classification
31 December 2023
Item Preparation for price
Carrying Amount Book value
decline
Raw materials 568,803,335 1,935,371 566,867,964
Work in
29,941,046 - 29,941,046
progress
Finished goods 928,685,781 28,179,241 900,506,540
Turnover
93,093,127 183,882 92,909,245
materials
Total 1,620,523,289 30,298,494 1,590,224,795
Continued
31 December 2022
Item Preparation for price
Carrying Amount Book value
decline
raw materials 646,622,778 9,065,792 637,556,986
Work in progress 31,745,770 31,745,770
Finished goods 1,067,004,894 20,645,880 1,046,359,014
Turnover materials 68,702,610 422,398 68,280,212
Total 1,814,076,052 30,134,070 1,783,941,982
（2）Provision for inventories
Item 1 January 2023 Increased in this Decrease in this 31 December 2023
155
CSG Annual Report 2023
issue period
Provision Transfer or resale
Raw materials 9,065,792 972,416 8,102,837 1,935,371
Finished goods 20,645,880 27,069,818 19,536,457 28,179,241
Turnover materials 422,398 109,140 347,656 183,882
Total 30,134,070 28,151,374 27,986,950 30,298,494
Provision for inventory decline (continued)
Reasons for the reversal or write-
Specific basis for determining net
off of inventory depreciation
realizable value/residual
Item reserves/contract performance
consideration and costs to be
cost impairment reserves in the
incurred
current period
Estimated selling price of finished
Raw materials products less completion costs and Sales achieved
taxes
Estimated selling price of a single
Finished goods Sales achieved
product minus sales tax
Turnover materials The recoverable amount is 0 Use or scrap
8、Noncurrent Assets Due within One Year
Item 31 December 2023 31 December 2022
Large-denomination certificates of
84,191,224 20,000,000
deposit maturing within one year
9、Other current assets
Item 31 December 2023 31 December 2022
VAT to be offset 260,361,670 45,198,116
Enterprise income tax prepaid 18,127,608 30,407,477
VAT input to be recognised 33,577,420 32,642,483
Term deposits with a maturity of less
40,000,000
than one year
Others 469
Total 352,066,698 108,248,545
(1) The new large amount of value-added tax to be deducted in this period is mainly caused by the large
new engineering procurement expenditure of subsidiary Qinghai CSG Risheng.
10、Investment properties
（1）Investment properties measured at fair value
Item Houses, buildings and related land use rights
156
CSG Annual Report 2023
1. 1 January 2023 290,368,105
2. Changes in this period -
3. 31 December 2023 290,368,105
（2）Failure to obtain property rights certificate
None
11、Fixed assets
1 (1) Fixed assets
Mechinery and Motor vehicles and
Item Buildings Total
equipment others
1. Original book value:
1. 1 January 2023 5,305,705,728 14,283,099,277 294,024,553 19,882,829,558
2. Increase amount in this period 1,006,208,137 3,441,878,955 90,582,853 4,538,669,945
(1) Purchase 3,869,287 49,647,181 30,929,892 84,446,360
(2) Transfer of projects under
999,289,570 3,380,191,472 53,422,642 4,432,903,684
construction
(3) Other additions 3,049,280 12,040,302 6,230,319 21,319,901
3. Reduction amount in this
3,881,814 1,579,741,559 15,491,668 1,599,115,041
period
(1) Disposal or scrapping - 183,538,135 11,625,202 195,163,337
(2) Transfer to construction in
1,381,792,411 1,718,407 1,383,510,818
progress
( 3 ) Other reductions 3,881,814 14,411,013 2,148,059 20,440,886
4. 31 December 2023 6,308,032,051 16,145,236,673 369,115,738 22,822,384,462
2. Accumulated depreciation
1. 1 January 2023 1,214,780,507 5,985,207,126 245,329,297 7,445,316,930
2. Increase amount in this period 197,060,230 898,167,527 40,656,838 1,135,884,595
(1) Provision 194,909,913 898,021,280 37,791,825 1,130,723,018
(2) Other additions 2,150,317 146,247 2,865,013 5,161,577
3. Reduction amount in this
2,647 260,852,616 12,266,774 273,122,037
period
(1) Disposal or scrapping - 77,213,610 11,345,065 88,558,675
(2) Transfer to construction in
178,386,741 101,347 178,488,088
progress
( 3 ) Other reductions 2,647 5,252,265 820,362 6,075,274
4. 31 December 2023 1,411,838,090 6,622,522,037 273,719,361 8,308,079,488
3. Impairment provision
1. 1 January 2023 152,839,987 1,040,644,542 791,924 1,194,276,453
2. Increase amount in this period - 370,129,469 179,736 370,309,205
(1) Accrual 251,248,816 1,058 251,249,874
157
CSG Annual Report 2023
(2) Other additions 118,880,653 178,678 119,059,331
3. Reduction amount in this
- 195,157,138 692,177 195,849,315
period
(1) Disposal or scrapping 86,999,018 192,155 87,191,173
(2) Other reductions 108,158,120 500,022 108,658,142
4. 31 December 2023 152,839,987 1,215,616,873 279,483 1,368,736,343
4. Book value
1. Book value at the end of the
4,743,353,974 8,307,097,763 95,116,894 13,145,568,631
period
2. Book value at the beginning of
3,938,085,234 7,257,247,609 47,903,332 11,243,236,175
the period
Note: Yichang Display, a subsidiary of the Group, conducted a fixed asset impairment test in this period.
The recoverable amount is determined based on the present value of the expected future cash flows. The
present value of the asset group’s expected future cash flows is based on the asset group’s continued
use and final value. The estimated future cash flow generated during disposal is determined by selecting
the appropriate discount rate to discount the amount.
Among them, the Yichang Display discount rate is selected using the pre-tax weighted average capital
cost, and the present value of the pre-tax cash flow using the pre-tax discount rate = the discounted value
of the after-tax cash flow using the after-tax discount rate is calculated.The after-tax discount rate uses
the weighted average cost of capital valuation model ("WACC"), and the calculated result is 8.11%.
The forecast period is from 2024 to 2031. It is determined based on the estimated useful life of the main
production line equipment being 8 years.
158
CSG Annual Report 2023
12、Construction in progress
（1）Details of projects under construction
31 December 2023 31 December 2022
Item Carrying Impairment Carrying Impairment net book
net book value
Amount provision Amount provision value
A new high-purity crystalline silicon project with an annual output of
2,646,430,785 2,646,430,785 10,319,009 10,319,009
50,000 tons in Haixi Prefecture, Qinghai Province
Guangxi Beihai Photovoltaic Green Energy Industrial Park (Phase I)
728,103,811 728,103,811 33,213,753 33,213,753
Project
Xi'an CSG energy-saving glass production line project 222,583,993 222,583,993 41,694,021 41,694,021
Qingyuan CSG Phase I Upgrading Technical Transformation Project 228,055,647 116,909,920 111,145,727 225,748,578 94,897,536 130,851,042
Anhui Fengyang newly built 37.6 MW distributed photovoltaic power
83,354,432 83,354,432
generation project
Anhui Fengyang Solar Equipment Lightweight and Highly
917,798,737 917,798,737
Transparent Panel Manufacturing Base Project
Xianning CSG 1200T/D ton photovoltaic packaging material
721,820,302 721,820,302
production line project
Hebei Windows Ultra-Thin Electronic Glass Second Line
352,366 352,366 256,034,845 256,034,845
Construction Project
Dongguan Photovoltaic Building B 450MWPERC battery technology
186,866,743 184,998,076 1,868,667 186,866,743 184,998,076 1,868,667
upgrade project
Wujiang Engineering New Engineering Glass Intelligent
120,473 120,473 72,885,336 72,885,336
Manufacturing Factory Construction Project
Zhaoqing CSG high-end automotive glass production line project 1,295,717 1,295,717 40,439,362 40,439,362
Dongguan Solar G6/G7 Line Process and Equipment Upgrading
37,794,114 37,794,114
Project
Zhaoqing CSG high-end energy-saving glass production line project 4,360,729 4,360,729 14,799,352 14,799,352
Anhui Fengyang Quartz Sand Project 403,753 403,753
Wujiang Float Lightweight and High-efficiency Double Glass 53,098 53,098
159
CSG Annual Report 2023
Processing Production Line Construction Project
Yichang CSG Polysilicon Technical Transformation Project 507,815,356 56,888,576 450,926,780
Xianning energy-saving production line reconstruction and expansion
25,585,501 25,585,501 5,549,681 5,549,681
construction project
Other projects 53,082,808 4,195,369 48,887,439 302,126,986 67,289,767 234,837,219
Total 4,688,008,361 362,991,941 4,325,016,420 2,867,547,670 347,185,379 2,520,362,291
2 (2) Movement of significant projects of construction in progress
Including:
Interest
Accumulated Amount of
Transfer to Other capitalization
Increase in amount of interest 31 December
Project name 1 January 2023 fixed assets in decreases in rate for the
current year interest capitalization 2023
current year current year current
capitalization for the current
period %
period
Qingyuan CSG Phase I
Upgrading Technical 225,748,578 2,396,602 89,533 - - - - 228,055,647
Transformation Project
Zhaoqing CSG high-end
automotive glass 40,439,362 55,025,636 94,169,281 1,295,717
production line project
Guangxi Beihai
Photovoltaic Green
33,213,753 705,147,093 7,442,081 2,814,954 4,622,497 4,570,131 2.20 728,103,811
Energy Industrial Park
(Phase I) Project
A new high-purity
crystalline silicon project
with an annual output of
10,319,009 2,636,455,139 343,363 - 4,251,969 4,251,969 4.17 2,646,430,785
50,000 tons in Haixi
Prefecture, Qinghai
Province
Anhui Fengyang Solar
Equipment Lightweight
917,798,737 615,304,618 1,533,103,355 45,615,843 11,731,330 2.75 -
and Highly Transparent
Panel Manufacturing
160
CSG Annual Report 2023
Base Project
Anhui Fengyang newly
built 37.6 MW distributed
83,354,432 - - 402,805 402,805 4.07 83,354,432
photovoltaic power
generation project
Xi'an CSG energy-
saving glass production 41,694,021 180,889,972 - - 1,939,591 1,939,591 3.58 222,583,993
line project
Xianning CSG 1200T/D
ton photovoltaic
721,820,302 129,225,232 851,045,534 13,945,275 - 6,505,468 3.60
packaging material
production line project
Total 1,991,033,762 4,407,798,724 2,486,193,147 2,814,954 70,777,980 16,390,358 3,909,824,385
161
CSG Annual Report 2023
Movement of significant projects of construction in progress ( continued):
The cumulative
investment in the
project
Project name Budget project as a Sources of funds
progress%
proportion of the
budget
Own funds and
Qingyuan CSG Phase I Upgrading
534,870,000 4% 4% loans from financial
Technical Transformation Project
institutions
Zhaoqing CSG high-end automotive
609,830,000 24% 24% private capital
glass production line project
Own funds and
Guangxi Beihai Photovoltaic Green
4,942,051,800 15% 15% loans from financial
Energy Industrial Park (Phase I) Project
institutions
A new high-purity crystalline silicon
Own funds and
project with an annual output of 50,000
4,498,192,210 59% 59% loans from financial
tons in Haixi Prefecture, Qinghai
institutions
Province
Anhui Fengyang Solar Equipment Own funds and
Lightweight and Highly Transparent 3,739,020,000 86% 100% loans from financial
Panel Manufacturing Base Project institutions
Anhui Fengyang newly built 37.6 MW Own funds and
distributed photovoltaic power 146,640,000 57% 57% loans from financial
generation project institutions
Own funds and
Xi'an CSG energy-saving glass
494,000,000 45% 45% loans from financial
production line project
institutions
Xianning CSG 1200T/D ton photovoltaic
packaging material production line 905,571,798 96% 100%
project
Total 15,870,175,808 -- -- --
3 (3) Provision for impairment of projects under construction
Provision for Other Decrease in 31 December
Project name 1 January 2023
this period additions this period 2023
Qingyuan CSG Phase I
Upgrading Technical 94,897,536 22,012,384 116,909,920
Transformation Project
Dongguan Photovoltaic
Building B 450MWPERC
184,998,076 - 184,998,076
battery technology
upgrade Project
Other projects 67,289,767 4,195,367 51,769,566 119,059,331 4,195,369
Yichang CSG Polysilicon
Technical Transformation - 56,888,576 - 56,888,576
Project
Total 347,185,379 26,207,751 108,658,142 119,059,331 362,991,941
During this period, an impairment test was conducted on the construction in progress. The recoverable
amount of the assets was determined based on the net amount after deducting the disposal costs from
162
CSG Annual Report 2023
the fair value. The fair value was mainly evaluated using the replacement cost method. Appraisal value =
full replacement price × new value Rate.
The full replacement price generally includes equipment purchase fees, transportation and miscellaneous
fees, installation and commissioning fees, basic fees, upfront and other expenses, and capital costs; the
content and method of calculating expenses (costs) other than equipment purchase fees are based on
the characteristics of the relevant equipment and the evaluation process. The price caliber and transaction
conditions of the equipment obtained are determined.
Newness rate = remaining useful life of the equipment ÷ (used years of the equipment + remaining useful
life of the equipment) × 100%.
The disposal costs mainly include stamp duty, legal fees, property rights transaction fees, appraisal fees
and other expenses; according to the Stamp Duty Law of the People's Republic of China, the "Stamp
Duty Items and Rates Table" and the "Opinions on Further Standardizing Lawyer Service Charges" (Si
Fa Tong [Sifa Tong] 2021] No. 87. According to the "Notice of the Guangdong Provincial Price Bureau on
the Charging Standards for Property Rights Transaction Services" (Guangdong Price [1999] No. 282) and
the assessment industry charging standards, the total disposal fee is calculated at 5% after
comprehensive consideration.
13、Right-of-use assets
Item Land Buildings Total
1. Original book value:
1. 1 January 2023 11,790,434 - 11,790,434
2. Increase amount in this period 10,032,601 2,984,415 13,017,016
(1) Rent 10,032,601 2,984,415 13,017,016
3. Reduction amount in this period - - -
4. Closing balance 21,823,035 2,984,415 24,807,450
2. Accumulated depreciation -
1. 1 January 2023 1,882,021 1,882,021
2. Increase amount in this period 1,138,580 149,221 1,287,801
(1) Accrual 1,138,580 149,221 1,287,801
3. Reduction amount in this period - - -
4. Closing balance 3,020,601 149,221 3,169,822
3. Impairment provision -
1. 1 January 2023 - - -
2. Increase amount in this period - - -
3. Reduction amount in this period - - -
4. Closing balance - - -
4. Book value -
1. Closing book value 18,802,434 2,835,194 21,637,628
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CSG Annual Report 2023
2. Book value at the beginning of the period 9,908,413 - 9,908,413
Note: The new leases in this period are the land and buildings leased by Wuxuan Nanxin Mining Co., Ltd., a
subsidiary of the Group, from minority shareholders. The lease period is from June 2023 to May 2033
14、Intangible assets
（1）Intangible assets
Patents and
Exploitation
Item Land use rights proprietary Others Total
rights
technologies
1. Original book value
1. 1 January 2023 1,425,431,642 502,074,878 5,351,751 54,579,056 1,987,437,327
2. Increase amount in this
44,382,500 61,678,307 1,086,319,795 18,128,913 1,210,509,515
period
(1) Purchase 44,382,500 1,086,319,795 18,128,913 1,148,831,208
(2) Internal research and
- 61,678,307 - - 61,678,307
development
3. Reduction amount in this
- - - 123,543 123,543
period
(1) Disposal - - - 123,543 123,543
4. 31 December 2023 1,469,814,142 563,753,185 1,091,671,546 72,584,426 3,197,823,299
2. Accumulated amortization -
1. 1 January 2023 258,193,337 227,328,706 4,775,067 45,827,071 536,124,181
2. Increase amount in this
34,957,321 35,650,039 36,001,913 10,344,226 116,953,499
period
(1) Accrual 34,957,321 35,650,039 36,001,913 10,344,226 116,953,499
3. Reduction amount in this
- - - 114,410 114,410
period
(1) Disposal - - - 114,410 114,410
4. Closing balance 293,150,658 262,978,745 40,776,980 56,056,887 652,963,270
3. Impairment provision -
1. 1 January 2023 13,201,347 9,133 13,210,480
2. Increase amount in this
- 41,115,084 13,374 41,128,458
period
(1) Accrual 41,115,084 13,374 41,128,458
3. Reduction amount in this
- 9,133 9,133
period
(1) Disposal 9,133 9,133
4. Closing balance - 54,316,431 13,374 54,329,805
4. Book value -
1. Closing book value 1,176,663,484 246,458,009 1,050,894,566 16,514,165 2,490,530,224
2. Book value at the
1,167,238,305 261,544,825 576,684 8,742,852 1,438,102,666
beginning of the period
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CSG Annual Report 2023
① At the end of the period, the proportion of intangible assets formed through internal research and
development to the balance of intangible assets was 15%.
15、Development expenditure
Increased in Decrease in 31 December
1 January 2023
current year current year 2023
Development expenditure 46,755,816 14,922,491 61,678,307 -
For details are disclosured in Note Research and Development Expenditures.
16、Goodwill
（1）Original book value of goodwill
Increased in this Decrease in
Name of the invested unit or matters issue this period 31 December
1 January 2023
forming goodwill Formed by 2023
Dispose
business merger
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
Guangdong Licheng Company - 696,000 - 696,000
Total 397,392,156 696,000 - 398,088,156
（2）Provision for impairment of goodwill
Increased in
Decrease in
Name of the invested unit or matters this period 31 December
1 January 2023 this period
forming goodwill Accrual 2023
Dispose
Shenzhen CSG Display(i) 389,494,804 - - 389,494,804
Total 389,494,804 - - 389,494,804
17、Long-term prepaid expenses
Decrease in this
Increased in this period
Item 1 January 2023 31 December 2023
issue Amortization for
the current period
Various prepaid expenses 2,647,939 21,102,553 4,986,063 18,764,429
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CSG Annual Report 2023
18、Deferred tax assets and liabilities
（1）Deferred income tax assets before offsetting
31 December 2023 31 December 2022
Item Deductible/taxable Deductible/taxable
Deferred tax Deferred tax
temporary temporary
assets/liabilities assets/liabilities
differences differences
Deferred tax assets:
Provision for asset impairments 988,603,433 149,485,849 740,627,003 112,511,365
Deductible losses 500,056,218 88,815,735 362,029,963 65,461,019
Government grants 171,767,926 26,346,666 160,233,122 25,185,546
Accrued expenses 6,854,739 1,028,211 8,584,847 1,287,727
Depreciation of fixed
124,810,353 19,386,825 100,859,773 15,955,296
assets ,etc
Total 1,792,092,669 285,063,286 1,372,334,708 220,400,953
Deferred tax liability:
Depreciation of fixed assets 571,131,285 86,841,423 663,136,097 100,893,303
Investment properties 368,564,944 55,284,742 368,564,944 55,284,742
Total 939,696,229 142,126,165 1,031,701,041 156,178,045
（2）Deferred tax assets or liabilities presented net of offsets
Closing The balance of
The offset amount
The amount of offset balance of deferred income
of deferred income
of deferred income deferred tax assets or
tax assets and
Item tax assets and income tax liabilities at the
liabilities at the
liabilities at the end assets or end of the
end of the
of the period liabilities after previous year after
previous year
offsetting offsetting
Deferred tax assets 62,038,255 223,025,031 58,911,204 161,489,749
Deferred tax liability 62,038,255 80,087,910 58,911,204 97,266,841
（3）Details of deductible temporary differences and deductible losses that have not been recognized
as deferred income tax assets
Item 31 December 2023 31 December 2022
Deductible losses 1,168,354,313 1,713,248,298
Total 1,168,354,313 1,713,248,298
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CSG Annual Report 2023
（4）Deductible losses that have not been recognized as deferred income tax assets will expire in the
following years
Year 31 December 2023 31 December 2022 Notes
2023 —— 146,238,837
2024 103,008,917 178,208,832
2025 502,484,452 745,942,821
2026 557,374,493 642,332,904
2027 524,904 524,904
2028 4,961,547 ——
Total 1,168,354,313 1,713,248,298
19、Other non-current assets
31 December 2023 31 December 2022
Item Carrying Impairment Carrying Impairment
Book value Book value
Amount provision Amount provision
Prepayment for equipment
390,090,354 390,090,354 194,410,485 194,410,485
and project
Prepayment for lease of
6,510,000 6,510,000 24,210,000 24,210,000
land use rights
Fixed deposits - - 80,000,000 80,000,000
Prepaid exploitation rights - - 558,000,000 558,000,000
Total 396,600,354 396,600,354 856,620,485 856,620,485
20、Assets with restricted ownership or use rights
31 December 2023
Item restricted
Carrying Amount Book value Restricted type
situation
Circulation restrictions
Cash at bank and
25,512,563 25,512,563 such as deposits and Cash and bank
on hand
freezes are restricted
Notes receivable 1,157,485,085 1,157,485,085 Staking is restricted Notes receivable
Financing lease
Fixed assets 416,947,659 106,982,081 Fixed assets
restricted
Total 1,599,945,307 1,289,979,729
Continued:
31 December 2022
Item restricted
Carrying Amount Book value Restricted type
situation
Cash at bank and 10,589,528 10,589,528 Circulation Cash and bank
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CSG Annual Report 2023
on hand restrictions such as
deposits and freezes
are restricted
Notes receivable 156,943,437 156,943,437 Staking is restricted Notes receivables
Financing lease
Fixed assets 416,947,659 132,370,370 Fixed assets
restricted
Total 584,480,624 299,903,335
21、Short-term loan
（1）Short-term loan classification
Item 31 December 2023 31 December 2022
Credit loan 108,426,590 201,000,000
Guaranteed loan 320,893,730 144,000,000
Discounted bills 7,533,263
Total 436,853,583 345,000,000
22、Notes payable
Type 31 December 2023 31 December 2022
Commercial acceptance 90,836,911 290,779,095
Bank acceptance 1,950,516,278 703,778,401
Total 2,041,353,189 994,557,496
23、Accounts payable
Item 31 December 2023 31 December 2022
Materials payable 938,666,542 813,677,642
Equipment payable 994,552,522 483,253,256
Construction expenses payable 1,206,275,761 576,821,441
Freight payable 143,114,233 88,104,366
Utilities payable 50,982,984 64,738,721
Others 8,032,560 6,947,201
Total 3,341,624,602 2,033,542,627
Significant accounts payable aged more than one year
Reasons for non-repayment or
Item 31 December 2023
non-carryover
Engineering and equipment Since the final accounts of the
253,959,618
payments, etc. relevant projects have not yet been
168
CSG Annual Report 2023
completed, they have not yet been
settled.
24、Contract liabilities
Item 31 December 2023 31 December 2022
Contract liabilities 362,538,795 418,051,975
25、Payroll payable
Increased in this Decrease in this 31 December
Item 1 January 2023
issue period 2023
A. Short-term compensation 464,930,939 2,133,052,776 2,117,811,480 480,172,235
B. Post-employment benefits-
8,685,489 183,310,663 191,996,152 -
Defined contribution plans payable
C. Termination benefits 9,830,255 6,664,694 3,165,561
Total 473,616,428 2,326,193,694 2,316,472,326 483,337,796
（1）Short-term compensation
Increased in this Decrease in this 31 December
Item 1 January 2023
issue period 2023
1. Wages and salaries, bonus,
438,423,328 1,976,446,172 1,959,360,949 455,508,551
allowances and subsidies
2. Social security 1,583,272 79,265,229 80,848,501 -
Including:Medical insurance 957,621 68,888,108 69,845,729 -
Work injury insurance 559,430 7,951,575 8,511,005 -
Maternity insurance 66,221 2,425,546 2,491,767 -
3. Housing Provident Fund 891,279 54,431,398 54,442,588 880,089
4. Labour union expenditure and
24,033,060 22,909,977 23,159,442 23,783,595
Personnel education
Total 464,930,939 2,133,052,776 2,117,811,480 480,172,235
（2）Defined Contribution Plan
Increased in this Decrease in this 31 December
Item 1 January 2023
issue period 2023
Post-employment benefits-defined
8,685,489 183,310,663 191,996,152 -
contribution plan
1. Basic pensions 8,403,902 176,643,952 185,047,854 -
2. Unemployment insurance 281,587 6,666,711 6,948,298 -
Total 8,685,489 183,310,663 191,996,152 -
169
CSG Annual Report 2023
26、Taxes payable
Taxes 31 December 2023 31 December 2022
VAT 44,410,002 91,809,300
Enterprise income tax payable 50,021,929 38,330,878
Individual income tax payable 6,633,485 7,688,833
Urban maintenance and construction tax
2,667,504 6,755,889
payable
Education surtax payable 2,209,407 4,953,777
Property tax payable payable 8,590,406 4,877,079
Environmental protection tax payable 1,842,557 1,252,845
Others 7,032,123 5,466,037
Total 123,407,413 161,134,638
27、Other payables
Item 31 December 2023 31 December 2022
Interest payable 8,751,408 99,945,325
Other payables 475,990,469 437,119,859
Total 484,741,877 537,065,184
（1）Interest payable
Item 31 December 2023 31 December 2022
Interest of long-term borrowings with
periodic payments of interest and return 8,082,760 5,754,599
of principal at maturity
Interest of corporate bonds - 92,258,065
Interest of short-term borrowings 668,648 1,932,661
Total 8,751,408 99,945,325
（2）Other payables (Disclosured by nature)
Item 31 December 2023 31 December 2022
Guarantee deposits received from
351,439,479 331,974,002
construction contractors
Accrued cost of sales(note) 67,861,475 62,936,670
Temporary receipts for third parties 7,277,368 2,318,135
Payable for contracted labour costs 27,689,963 28,696,828
Others 21,722,184 11,194,224
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CSG Annual Report 2023
Total 475,990,469 437,119,859
Note: 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.
28、Current portion of non-current libilities
Item 31 December 2023 31 December 2022
Current portion of long-term
1,206,872,898 443,216,290
borrowings
Current portion of debentures payable 1,999,316,522
Current portion of long-term account
40,939,718 38,900,194
payable
Lease liabilities due within one year 1,079,363 -
Total 1,248,891,979 2,481,433,006
29、Other current liabilities
Item 31 December 2023 31 December 2022
Output VAT to be transferred 44,121,680 50,107,240
Notes that derecognised 288,534,731 -
Supply Chain Finance, etc. 121,676,275 300,000
Total 454,332,686 50,407,240
30、Long-term borrowings
Item 31 December 2023 31 December 2022
Credit loan 1,949,750,000 1,564,220,000
Guaranteed loan 5,478,771,574 3,232,586,270
Total 7,428,521,574 4,796,806,270
Less: Long-term borrowings due
1,206,872,898 443,216,290
within one year
Total 6,221,648,676 4,353,589,980
31、Lease liabilities
Item 31 December 2023 31 December 2022
Lease liability 16,213,925 3,564,330
Less: Lease liabilities due within one
1,079,363 -
year
Total 15,134,562 3,564,330
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CSG Annual Report 2023
32、Long-term payables
Item 31 December 2023 31 December 2022
Long-term payables 88,204,163 129,236,878
（1）Long-term payables (disclosured by nature)
Item 31 December 2023 31 December 2022
Finance lease payments payable 129,143,881 168,137,072
Less: Long-term payables due within
40,939,718 38,900,194
one year
Total 88,204,163 129,236,878
33、Provisions
Item 31 December 2023 31 December 2022 Causes
Pending litigation 1,251,941 -
Retirement obligation 11,798,141 - Note
Total 13,050,082 -
Note: In accordance with legal provisions such as the "Mining Geological Environmental Protection
Regulations" and the "Land Reclamation Regulations", the company estimates disposal costs in
accordance with the relevant provisions of the Accounting Standards for Business Enterprises.
34、Deferred Income
Increased in this Decrease in this 31 December
Item 1 January 2023 Causes
issue period 2023
Government
449,875,380 30,690,950 50,422,500 430,143,830
grants
For details of government grants included in deferred income, please refer to Note Government grants.
35、Share capital (unit: share)
Item 1 January 2023 Movement for the year ended 31 December 2023 (+, -) 31 December 2023
Conversion of
Issue new Bonus Provident
Other Subtotal
shares shares Fund into
Shares
Total number
of ordinary 3,070,692,107 - - - - - 3,070,692,107
shares
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CSG Annual Report 2023
36、Capital reserve
1 January Increased in this Decrease in this
Item 31 December 2023
2023 issue period
Share premium 655,424,260 - 6,257,671 649,166,589
Other capital surplus -58,427,175 - -58,427,175
Total 596,997,085 - 6,257,671 590,739,414
Note: The decrease in capital reserve in this period was caused by the purchase of minority shareholders’
equity in the subsidiary Dongguan Jingyu.
37、Other comprehensive income
Other comprehensive income attributable to the parent company in the balance sheet:
2023
Less: Included in
other comprehensive 31 December
1 January 2023 income in the 2023 (4) = (1)
Item Attributable to parent
(1) previous period and
company after tax (2) + (2) - (3)
transferred to
retained earnings in
the current period (3)
1. Other comprehensive
income items which will not
be reclassified - - - -
subsequently to profit or
loss
2. Other comprehensive
income items which will be
170,860,478 6,523,993 - 177,384,471
reclassified subsequently to
profit or loss
1. Difference on translation of
foreign currency financial 7,158,681 6,523,993 - 13,682,674
statements
2. Financial rewards
for energy-saving technical 2,550,000 - - 2,550,000
retrofits
3. Investment properties 161,151,797 - - 161,151,797
Total other comprehensive
170,860,478 6,523,993 - 177,384,471
income
Other comprehensive income attributable to the parent company in the income statement:
2023
Amount before Less: included in other Less: Attributable
Item Less: Income
income tax for comprehensive income Attributable to parent
tax expense
the current in the previous period to minority company
(3)
period (1) and transferred to shareholder after tax (5) =
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CSG Annual Report 2023
profit and loss in the s after tax (4) (1)-(2)-(3)-(4)
current period (2)
1. Other
comprehensive
income that will - - - - -
not be reclassified
into profit or loss
2. Other
comprehensive
income that will be 6,523,993 - - - 6,523,993
reclassified into
profit and loss
Including:Difference
on translation of
6,523,993 6,523,993
foreign currency
financial statements
Total 6,523,993 - - - 6,523,993
38、Special reserves
Increased in this Decrease in this
Item 1 January 2023 31 December 2023
issue period
Safety production
731,580 10,077,969 9,398,410 1,411,139
costs
The special reserves added in this period are the production safety expenses of special equipment
extracted according to the prescribed standards in accordance with the "Administrative Measures
for the Extraction and Use of Enterprise Safety Production Expenses" by Yichang Silicon Materials,
a subsidiary of the Group. The amount of reserves is reduced in this period based on actual usage.
39、Surplus reserve
Increased in this Decrease in this
Item 1 January 2023 31 December 2023
issue period
Statutory surplus reserve 1,100,781,433 175,429,297 - 1,276,210,730
Discretionary surplus reserve 127,852,568 - - 127,852,568
Total 1,228,634,001 175,429,297 - 1,404,063,298
40、Undistributed profits
Extract or
Item 2023 2022
Distribution ratio
Undistributed profits at the end of the previous period
7,786,968,455 6,447,650,867 --
before adjustments
Adjust the total amount of undistributed profits at
- - --
the beginning of the period (increase +, decrease -)
Adjusted opening undistributed profits 7,786,968,455 6,447,650,867
Add: Net profit attributable to shareholders of the parent
1,655,614,446 2,037,202,500 --
company for the current period
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CSG Annual Report 2023
Less: Withdrawal from statutory surplus reserve 175,429,297 83,746,491
Dividends payable on common shares 460,603,816 614,138,421
Undistributed profit at the end of the period 8,806,549,788 7,786,968,455
41、Operating income and operating costs
（1）Operating income and operating costs
2023 2022
Item
Revenue Cost Revenue Cost
Principal operation 17,974,268,654 14,049,399,952 14,944,821,360 10,882,072,965
Other operations 220,595,712 91,672,219 253,885,638 124,722,408
Total 18,194,864,366 14,141,072,171 15,198,706,998 11,006,795,373
（2）Operating income and operating costs by industry (or product type)
2023 2022
Main product type (or industry)
Revenue Cost Revenue Cost
Principal operation:
Glass industry 14,610,084,880 11,470,733,662 9,998,264,863 7,642,662,331
Electronic glass and display device
1,526,088,005 1,297,600,298 1,596,733,096 1,226,054,958
industry
Solar energy and other industries 2,090,567,358 1,536,136,861 3,690,753,344 2,356,518,419
Unassigned industry type 2,599,280 - 2,232,800 -
Inter-segment elimination -255,070,869 -255,070,869 -343,162,743 -343,162,743
Total 17,974,268,654 14,049,399,952 14,944,821,360 10,882,072,965
Other business:
Sales of raw materials and others 220,595,712 91,672,219 253,885,638 124,722,408
Total 18,194,864,366 14,141,072,171 15,198,706,998 11,006,795,373
（3）Operating income and operating costs by region
Principal 2023 2022
operation areas Revenue Cost Revenue Cost
Chinese mainland 16,639,820,052 12,884,833,088 14,031,154,824 10,079,593,782
Overseas 1,555,044,314 1,256,239,083 1,167,552,174 927,201,591
Total 18,194,864,366 14,141,072,171 15,198,706,998 11,006,795,373
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CSG Annual Report 2023
（4）Main business Revenue and main business costs by the time of commodity transfer
2023
Electronic glass and display Solar energy and other Unassigned
Item Glass industry Inter-segment elimination
device industry industries industry type
Revenue Cost Revenue Cost Revenue Cost Revenue Cost Revenue Cost
Main business
Among them:
confirmed at a
14,610,084,880 11,470,733,662 1,526,088,005 1,297,600,298 2,090,567,358 1,536,136,861 2,599,280 - -255,070,869 -255,070,869
certain point in
time
Total 14,610,084,880 11,470,733,662 1,526,088,005 1,297,600,298 2,090,567,358 1,536,136,861 2,599,280 - -255,070,869 -255,070,869
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CSG Annual Report 2023
42、Taxes and surcharges
Item 2023 2022
Urban maintenance and construction
36,461,120 38,620,656
tax
Education fee surcharge 29,929,326 31,008,119
Property tax 44,961,520 31,807,938
Land holding tax 22,258,942 17,451,373
Stamp duty 13,454,419 8,844,793
Environmental protection tax 6,287,965 4,814,077
Others 5,024,847 2,926,836
Total 158,378,139 135,473,792
For details on the calculation and payment standards of various taxes and surcharges, please refer to
Note Taxes.
43、Sales expenses
Item 2023 2022
Employee's salary 209,449,335 209,351,728
Social entertainment expenses 25,427,207 19,052,349
Travel expenses 14,561,148 8,234,864
Rental fees 11,347,234 9,418,713
Shipping fee 2,661,265 5,632,947
Vehicle usage fee 8,355,362 9,244,459
Insurance 4,418,905 17,698,899
Office expenses 3,916,626 3,848,589
Others 37,565,061 31,272,428
Total 317,702,143 313,754,976
44、General and administrative expenses
Item 2023 2022
Employee's salary 484,123,255 434,953,745
Depreciation and amortization 189,979,394 114,878,297
Office expenses 37,210,330 34,156,691
Utility bills 8,323,198 6,987,706
Canteen fees 12,373,011 10,448,596
Travel expenses 11,429,040 6,123,944
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CSG Annual Report 2023
Rental fees 2,468,974 7,580,873
Vehicle usage fee 7,027,689 7,592,501
Social entertainment expenses 24,623,182 19,657,929
Union funds 22,320,175 19,320,629
Consulting fee 13,111,241 12,931,584
Others 52,381,648 44,306,410
Total 865,371,137 718,938,905
45、Research and Development Expenses
Item 2023 2022
Research and development expenses 739,301,765 644,146,614
46、Financial expenses
Item 2023 2022
Interest of borrowings 249,878,813 269,234,431
Less: Capitalization of interest 21,719,175 56,510,168
Interest expense 228,159,638 212,724,263
Less: Interest income 72,612,051 71,751,429
Exchange gains and losses -930,640 3,466,699
Handling fees and others 4,209,158 3,773,449
Total 158,826,105 148,212,982
47、Other income
Item 2023 2022
Government subsidy amortization 50,422,500 117,125,948
Industry Support Fund 2,821,700 4,843,800
Government incentive funds 42,923,303 45,036,841
Scientific research funding subsidies 8,354,639 6,629,170
Tax benefits and rebates 70,313,326 3,811,340
Others 8,762,771 10,920,682
Total 183,598,239 188,367,781
48、Investment income
Item 2023 2022
Investment income during the holding period of trading financial
- 27,665,396
assets
178
CSG Annual Report 2023
Others -6,610,842 3,902,458
Total -6,610,842 31,567,854
49、Credit impairment losses (losses are listed with “—” sign)
Item 2023 2022
Bad debt losses on notes receivable -1,685,175
Bad debt losses on accounts receivable -18,947,038 -44,501,593
Bad debt losses on other receivables -854,140 -3,218,514
Total -21,486,353 -47,720,107
50、Asset impairment losses (losses are listed with "-" sign)
Item 2023 2022
Inventory depreciation loss -28,151,374 -28,315,491
Impairment losses on fixed assets -251,249,874 -4,997,092
Impairment losses on projects under construction -26,207,751 -
Goodwill impairment loss - -122,250,507
Impairment losses on intangible assets -41,128,458
Total -346,737,457 -155,563,090
51、Asset disposal gain (losses are listed with "-" sign)
Item 2023 2022
Profit from disposal of fixed assets (losses are listed with “-”) -551,072 15,213,059
52、Non-operating income
Amount included in
non-recurring gains
Item 2023 2022
and losses for the
current period
Caim income 748,894 305,439 748,894
Insurance claim 3,588,286 9,054,400 3,588,286
Unable to pay 13,792,192 9,954,737 13,792,192
Others 5,062,035 3,377,696 4,557,807
Total 23,191,407 22,692,272 22,687,179
53、Non-operating Expenses
Item 2023 2022 Amount included in
179
CSG Annual Report 2023
non-recurring gains
and losses for the
current period
Losses due to damage or scrapping
11,361,977 2,752,304 11,361,977
of non-current assets
Donation expenditure 611,914 488,577 611,914
Compensation expenses 493,777 655,574 493,777
Others 953,227 3,170,723 463,363
Total 13,420,895 7,067,178 12,931,031
54、Income tax expenses
（1）Income tax expense details
Item 2023 2022
Current income tax calculated in accordance with tax laws and
164,475,016 129,071,035
relevant regulations
Deferred income tax expense -78,714,213 106,416,724
Total 85,760,803 235,487,759
（2）The relationship between income tax expenses and total profits
Item 2023 2022
The total profit 1,632,195,933 2,278,874,947
Income tax expense calculated at applicable tax rate 252,569,882 391,337,658
The impact of tax rate changes on the opening deferred income
5,151,501 3,912,386
tax balance
Adjustments to current income taxes in prior periods -8,752,897 -7,776,520
Non-deductible costs, expenses and losses 3,932,515 8,735,749
The tax impact of utilizing unrecognized deductible losses and
deductible temporary differences in previous years (filled in with -53,661,041 -69,079,756
"-")
Tax implications of unrecognized deductible losses and
832,711 131,226
deductible temporary differences
The impact of obtaining tax incentives (fill in with "-") -114,311,868 -91,772,984
Income tax expense 85,760,803 235,487,759
55、Cash Flow Statement Item Notes
（1）Cash received related to other operating activities
Item 2023 2022
Government subsidy 114,320,554 77,146,968
180
CSG Annual Report 2023
Interest income 72,612,051 71,751,429
Operating deposits and security
166,274,841 18,562,038
deposits
Others 18,001,612 18,513,134
Total 371,209,058 185,973,569
（2）Cash paid related to other operating activities
Item 2023 2022
Office expenses 50,699,287 45,107,807
Canteen fees 43,439,068 40,379,269
Social entertainment expenses 50,854,382 38,066,795
Insurance 19,583,231 28,837,239
Maintenance fees 38,699,597 28,584,497
Travel expenses 35,150,855 19,865,565
Rental fees 18,400,558 19,010,554
Vehicle usage fee 17,075,085 18,761,308
Consulting fee 16,742,015 15,645,923
Bank fees 4,121,148 3,773,449
Others 119,041,903 110,031,145
Total 413,807,129 368,063,551
（3）Cash received from other investing activities
Item 2023 2022
Collect deposits and security deposits 15,521,326 29,927,321
Others 10,000,000 -
Total 25,521,326 29,927,321
（4）Cash paid related to significant investment activities
Item 2023 2022
Engineering project construction
4,267,442,530 3,416,942,337
expenditure
Financial investment expenses 40,000,000 2,698,160,000
Total 4,307,442,530 6,115,102,337
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CSG Annual Report 2023
（5）Cash received from other financing activities
Item 2023 2022
Minority shareholder borrowings 12,000,000 -
（6）Cash paid related to financing activities
Item 2023 2022
Repay finance lease payments 45,896,547 46,045,514
Fundraising fee 562,168 -
Financing deposits and guarantee deposits 100,000 -
Total 46,558,715 46,045,514
182
CSG Annual Report 2023
（7）Changes in various liabilities arising from financing activities
non-cash
Cash changes
Item 1 January 2023 changes 31 December 2023
Cash inflow cash outflow other
Short-term loan 345,000,000 431,653,583 339,800,000 436,853,583
Long-term borrowings (including long-term borrowings due
4,796,806,270 3,390,838,317 759,123,013 7,428,521,574
within one year)
Bonds payable (including bonds payable due within one year) 1,999,316,522 2,000,000,000 683,478 -
Total 7,141,122,792 3,822,491,900 3,098,923,013 683,478 7,865,375,157
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CSG Annual Report 2023
56、Cash Flow Statement Supplementary Information
（1）Cash Flow Statement Supplementary Information
Additional materials 2023 2022
1. Adjust net profit to cash flow from operating activities:
Net profit 1,546,435,130 2,043,387,188
Add: asset impairment loss 346,737,457 155,563,090
Credit impairment loss 21,486,353 47,720,107
Fixed asset depreciation 1,130,723,018 931,508,062
Depreciation of right-of-use assets 1,287,801 2,022,712
Amortization of intangible assets 116,953,499 65,785,684
Amortization of long-term deferred expenses 4,986,063 1,835,784
Losses from disposal of fixed assets, intangible assets and
9,628,136 -15,213,059
other long-term assets (income is listed with a “-” sign)
Financial expenses (income is listed with "-") 228,159,638 212,724,263
Investment losses (income is listed with "-") -8,015,482 -31,567,854
Decrease in deferred income tax assets (increases are
-61,535,282 93,555,317
indicated with "-")
Increase in deferred income tax liabilities (decreases are
-17,178,931 12,861,407
indicated with "-")
Decrease in inventory (increases are listed with "-") 193,552,763 -713,041,551
Decrease in operating receivables (increases are indicated with
-1,760,462,941 -1,508,659,625
a “-” sign)
Increase in operating payables (decreases are indicated with a
996,953,703 650,035,930
“-” sign)
other 10,077,969 8,605,776
Net cash flow from operating activities 2,759,788,894 1,957,123,231
3. Net changes in cash and cash equivalents:
Closing balance of cash 3,051,261,655 4,594,018,251
Less: 1 January 2023 of cash 4,594,018,251 2,756,477,572
Add: Closing balance of cash equivalents
Less: Beginning balance of cash equivalents
Net increase in cash and cash equivalents - 1,542,756,596 1,837,540,679
（2）Net cash paid to acquire subsidiaries in the current period
Item 2023
Cash or cash equivalents paid in the current period for business mergers that
696,000
occurred in the current period
Among them: Guangdong Licheng Company 696,000
184
CSG Annual Report 2023
Less: Cash and cash equivalents held by the company at the date of purchase -
Among them: Guangdong Licheng Company -
Add: Cash or cash equivalents paid in the current period for business combinations
-
that occurred in previous periods
Net cash paid for obtain subsidiaries 696,000
（3）Composition of cash and cash equivalents
Item 31 December 2023 31 December 2022
1. Cash 3,051,261,655 4,594,018,251
Of which: cash on hand - -
Bank deposits available for payment at any time 3,051,261,655 3,242,318,251
Funds in other currencies readily available for payment - 1,351,700,000
2. Cash equivalents - -
Including: Bond investments due within three months - -
3. Closing balance of cash and cash equivalents 3,051,261,655 4,594,018,251
（4）Monetary funds other than cash and cash equivalents
Reasons why it is not cash and cash
Item 31 December 2023 31 December 2022
equivalents
Other monetary The use of margin deposits, etc. is
25,512,563 10,589,528
fund restricted
57、Foreign currency monetary items
Ending foreign currency Conversion Ending balance converted
Item
balance exchange rate into RMB
Money funds
Of which: Hong Kong dollars 10,085,239 0.9062 9,139,244
Australian dollar 798 4.8484 3,867
Dollar 4,713,921 7.0827 33,387,290
EUR 12,642 7.8592 99,356
JPY 6,001,554 0.0502 301,278
Singapore dollar 25,498 5.3772 137,108
Accounts receivable
Of which: Hong Kong dollars 6,809,125 0.9062 6,170,429
Dollar 37,268,927 7.0827 263,964,630
EUR 834,785 7.8592 6,560,745
Accounts payable
Of which: US dollars 3,803,804 7.0827 26,941,200
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CSG Annual Report 2023
EUR 166,156 7.8592 1,305,853
JPY 4,722,510 0.0502 237,070
Hong Kong dollar 60,601 0.9062 54,917
GBP 11,000 9.0411 99,452
（1）Foreign currency monetary items
VI. R & D spending
1、R & D spending
Item 2023 2022
Material 381,619,773 327,252,319
Labor costs 278,856,715 274,026,389
Fees and others 93,747,768 90,691,018
Total 754,224,256 691,969,726
Among them: expense 739,301,765 644,146,614
Capitalization 14,922,491 47,823,112
VII. Interests in other entities
1、Interests in subsidiaries
（1）The structure of a business group
Shareholding
Registered Principal place Nature of ratio % How to
Subsidiary name Registration
capital of business business obtain
direct indirect
Development,
production
Chengdu CSG 260 million Chengdu, and sales of
Chengdu, China 75 25 set up
Company yuan China various
special
glasses
Development,
production
Sichuan Energy 180 million Chengdu, Survival and
Chengdu, China and sales of 75 25
Saving Company yuan China separation
various
special
186
CSG Annual Report 2023
glasses and
glass deep
processing
Development,
production
Tianjin Energy 336 million Tianjing, and sales of
Tianjing, China 75 25 set up
Saving Company yuan China energy-
saving
special glass
Dongguan
240 million Dongguan, Dongguan, Glass deep
Engineering 75 25 set up
yuan China China processing
Company
Production
Dongguan Solar 480 million Dongguan, Dongguan, and sales of
75 25 set up
Energy Company yuan China China solar glass
products
Production
and sales of
Dongguan high-tech
516 million Dongguan, Dongguan,
Photovoltaic green battery 100 set up
yuan China China
Company products and
their
components
Production
and sales of
Yichang Silicon
1,467.98 Yichang, high-purity
Materials Yichang, China 75 25 set up
million yuan China silicon
Company
material
products
Wujiang
320 million Wujiang, Glass deep
Engineering Wujiang, China 75 25 set up
yuan China processing
Company
Production
and sales of
Hebei CSG US$48.06 Yongqing,
Yongqing, China various 75 25 set up
Company million China
special
glasses
Production
and sales of
Wujiang CSG 565.04 million Wujiang,
Wujiang, China various 100 set up
Company yuan China
special
glasses
86 440,000
CSG (Hong Kong) China Hong China Hong investment
Hong Kong 100 set up
Co., Ltd. Kong Kong holding
dollars
Production
Xianning Float 235 million Xianning,
Xianning, China and sales of 75 25 set up
Co., Ltd. yuan China
special glass
Xianning Energy 215 million Xianning, Glass deep Survival and
Xianning, China 75 25
Saving Company yuan China processing separation
Production
Qingyuan Energy 1,055 million Qingyuan, and sales of
Qingyuan, China 100 set up
Saving Company yuan China various ultra-
thin electronic
187
CSG Annual Report 2023
glasses
Shenzhen CSG Financial
300 million Shenzhen, Shenzhen,
Financial Leasing leasing 75 25 set up
yuan China China
Co., Ltd. business, etc.
Production
and sales of
Jiangyou sand 100 million China
China Jiangyou silica sand 100 set up
mining company yuan Jiangyou
and its by-
products
Production
and sales of
Shenzhen Display 143 million Shenzhen, Shenzhen,
display 60.8 Buy
Company yuan China China
component
products
Production
and sales of
Zhaoqing Energy 200 million Zhaoqing,
Zhaoqing, China various 100 set up
Saving Company yuan China
special
glasses
Production
Zhaoqing and sales of
200 million Zhaoqing,
Automobile Zhaoqing, China various 100 set up
yuan China
Company special
glasses
Production
Anhui New Energy 1.75 billion Fengyang, Fengyang, and sales of
100 set up
Company yuan China China solar glass
products
Quartzite
Anhui Quartz Fengyang, Fengyang,
75 million yuan mining and 100 set up
Company China China
processing
Anhui Silicon Mineral
360 million Fengyang, Fengyang,
Valley Mingdu resource 60 set up
yuan China China
Mining Company mining
Production
and sales of
Xi'an Energy 150 million
Xi'an, China Xi'an, China various 55 45 set up
Saving Company yuan
special
glasses
Production
Guangxi New
600 million Beihai, and sales of
Energy Materials Beihai, China 75 25 set up
yuan China solar glass
Company
products
188
CSG Annual Report 2023
2、Business combination not under common control
（1）Business mergers not involving enterprises under common control that occurred during the current
period
The cash
Net profit
Income of flow of
of the
the the
Basis purchase
purchased purchase
Equity for d party
Equity Equity Equity party from d party
Purchased acquisitio Purchas determi from the
acquisitio acquisitio acquisitio the date of from the
party name n ratio e date ning date of
n time n cost n method purchase purchase
(%) purchas purchase
to the end date to
e date to the end
of the the end
of the
period of the
period
period
Guangdong
March 21, cash March actual
Licheng 696,000 100 3,356,743 -1,080,540 29,864
2023 purchase 21, 2023 control
Company
（2）Merger costs and goodwill
Guangdong Licheng
Item
Company
Combined cost:
Cash 696,000
Total 696,000
Less: Share of fair value of identifiable net assets acquired -
The amount by which goodwill/merger cost is less than the fair value share of identifiable net
696,000
assets acquired
（3）The identifiable assets and liabilities of the purchased party on the purchase date
Guangdong Licheng Company
Item
Fair value on purchase date Book value on purchase date
Net assets acquired from merger - -
3、Other Changes in the Scope of Consolidation
(1) On April 24, 2023, this group established Guangxi CSG Mining Co., Ltd. (hereinafter referred to as
"Guangxi Mining Company"). As of December 31, 2023, this group has contributed RMB 50 million,
holding 100% of its shares.
(2) On April 26, 2023, this group established CSG Japan Co., Ltd. (hereinafter referred to as "CSG Japan").
As of December 31, 2023, this group has contributed 6 million Japanese yen, holding 100% of its shares.
(3) On May 19, 2023, this group established Wuxuan Nanxin Mining Co., Ltd. (hereinafter referred to as
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CSG Annual Report 2023
"Wuxuan Mining Company"). As of December 31, 2023, this group has contributed RMB 6 million, holding
60% of its shares.
(4) On October 18, 2023, this group established Qinghai CSG Photovoltaic Technology Co., Ltd.
(hereinafter referred to as "Qinghai Photovoltaic Company"). As of December 31, 2023, this group has
not contributed funds, holding 100% of its shares.
(5) On December 8, 2023, this group established Jiangyou City CSG Quartz Sand Co., Ltd. (hereinafter
referred to as "Jiangyou Quartz Company"). As of December 31, 2023, this group has not contributed
funds, holding 100% of its shares.
VIII. Government grants
1、Government subsidies included in deferred income
（1）Government subsidies included in deferred income are subsequently measured using the gross
method.
The
amount Presentation
carried items carried
New
forward forward and
subsidy 31 Asset
1 January and Other included in
Item amount December related/income
2023 included in changes profit and
for this 2023 related
profit and loss in the
period
loss in the current
current period
period
Group Talent related to
171,000,000 171,000,000
Fund Project income
Other subsidy Related to
278,875,380 30,690,950 50,422,500 259,143,830 Other income
projects assets/income
Total 449,875,380 30,690,950 50,422,500 - 430,143,830
2、Government subsidies included in current profits and losses using the gross method
Amount included Amount included
Asset
in profit and loss in profit and loss Items presented in
Subsidy item type related/income
in the previous for the current profit or loss
related
period period
Government Financial
71,241,833 66,216,291 Other income Related to income
gtant allocation
3、Government subsidies using the net method to offset related costs
The amount of The amount of Items for Asset
Subsidy item type
relevant costs relevant costs presentation of related/income
190
CSG Annual Report 2023
offset in the offset in the write-down related
previous period current period related costs
Fiscal interest Financial Financial
2,125,915 3,711,633 Related to income
discount allocation expenses
IX. Financial Instrument Risk Management
The Group's main financial instruments include monetary funds, notes receivable, accounts receivable,
receivable financing, other receivables, non-current assets due within one year, other current assets,
notes payable, accounts payable, Other payables, short-term borrowings, trading financial liabilities, non-
current liabilities due within one year, long-term borrowings, bonds payable , lease liabilities and long-
term payables. Details of each financial instrument have been disclosed in the relevant notes. The risks
associated with these financial instruments and the risk management policies adopted by the Group to
mitigate these risks are described below. The management of the Group manages and monitors these
risk exposures to ensure that the above risks are controlled within limited limits.
1、Risk management objectives and policies
The main risks caused by the Group's financial instruments are credit risk, liquidity risk, and market risk
(including exchange rate risk, interest rate risk, and commodity price risk).
The Group's overall risk management plan addresses the unpredictability of financial markets and strives
to reduce potential adverse effects on the Group's financial performance.
The Group has formulated risk management policies to identify and analyze the risks faced by the Group,
set appropriate risk acceptance levels and design corresponding internal control procedures to monitor
the Group's risk levels. The Group will regularly reassess these risk management policies and related
internal control systems to adapt to changes in market conditions or the Group's operating activities. The
internal audit department also regularly and irregularly checks whether the implementation of the internal
control system complies with the risk management policy.
The Board of Directors is responsible for planning and establishing the Group's risk management structure,
formulating the Group's risk management policies and relevant guidelines, and supervising the
implementation of risk management measures. The Group has formulated risk management policies to
identify and analyze the risks faced by the Group. These risk management policies clearly define specific
risks and cover many aspects such as market risk, credit risk and liquidity risk management. The Group
regularly assesses changes in the market environment and the Group's operating activities to determine
whether to update risk management policies and systems. The Group's risk management is carried out
by relevant departments in accordance with policies approved by the Board of Directors. These
departments identify, evaluate and avoid relevant risks through close cooperation with other business
departments of the Group.
The Group diversifies financial instrument risks through appropriate diversification of investments and
business portfolios, and reduces risks concentrated in a single industry, specific region or specific
counterparty by formulating corresponding risk management policies.
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CSG Annual Report 2023
（1）Credit risk
Credit risk refers to the risk that the counterparty fails to perform its contractual obligations, resulting in
financial losses to the Group.
The Group manages credit risks by portfolio classification. Credit risk mainly arises from bank deposits,
bills receivable, accounts receivable, other receivables, etc.
The Group's bank deposits are mainly deposited in state-owned banks and other large and medium-sized
listed banks. The Group expects that there will be no significant credit risk in bank deposits.
For notes receivable, accounts receivable, other receivables and long-term receivables, the Group sets
relevant policies to control credit risk exposure. The Group evaluates the customer's credit qualifications
and sets corresponding credit periods based on the customer's financial status, credit history and other
factors such as current market conditions. The Group will regularly monitor customer credit records. For
customers with poor credit records, the Group will use written reminders, shorten the credit period or
cancel the credit period to ensure that the Group's overall credit risk is within a controllable range. .
The debtors of the Group's accounts receivable are customers located in different industries and regions.
The Group continues to conduct credit assessments on the financial status of accounts receivable and
purchases credit guarantee insurance when appropriate.
The Group's maximum exposure to credit risk is the carrying amount of each financial asset on the
balance sheet. The Group does not provide any other guarantees that may expose the Group to credit
risk. Among the Group's accounts receivable, those from the top five customers(mainly photovoltaic glass
customers) accounted for 39% of the Group's total accounts receivable (2022: 34%).These customers
are all industry leaders with good credit, thus reducing the risk of accounts receivable recovery for this
group. Among the Group's other receivables, those from the top five companies in terms of arrears Other
receivables account for 87% of the Group's total other receivables (2022: 87%).
（2）Liquidity risk
Liquidity risk refers to the risk that the Group encounters a shortage of funds when fulfilling its obligations
to settle by delivering cash or other financial assets.
When managing liquidity risk, the Group maintains and monitors cash and cash equivalents that
management considers sufficient to meet the Group's operating needs and reduce the impact of cash
flow fluctuations. The management of the Group monitors the use of bank borrowings and ensures
compliance with borrowing agreements. At the same time, obtain commitments from major financial
institutions to provide sufficient backup funds to meet short-term and long-term funding needs.
At the end of the period, the financial liabilities and off-balance sheet guarantee items held by the Group
are analyzed based on the maturity period of the undiscounted remaining contract cash flows as follows
(unit: yuan):
Item 31 December 2023
192
CSG Annual Report 2023
one to two two to five More than five
Within a year Total
years years years
Financial liabilities:
Short-term loan 442,145,185 - - - 442,145,185
Notes payable 2,041,353,189 - - - 2,041,353,189
Accounts payable 3,341,624,602 - - - 3,341,624,602
Other payables 484,741,877 - - - 484,741,877
Non-current liabilities due
1,271,501,008 - - - 1,271,501,008
within one year
Other current liabilities 454,332,686 - - - 454,332,686
Long term loan 214,670,100 1,941,153,526 3,246,286,160 1,584,820,574 6,986,930,360
Lease liability 1,128,760 3,705,792 10,300,010 15,134,562
Long-term payables - 42,003,985 46,200,178 - 88,204,163
Total financial liabilities
8,250,368,647 1,984,286,271 3,296,192,130 1,595,120,584 15,125,967,632
and contingent liabilities
At the end of last year , the financial liabilities and off-balance sheet guarantee items held by the Group
were analyzed based on the maturity period of the undiscounted remaining contract cash flows as follows
(unit: yuan):
Balance at the end of the previous year
Item one to two two to five More than five
Within a year Total
years years years
Financial liabilities:
Short-term loan 350,149,308 - - - 350,149,308
Notes payable 994,557,496 - - - 994,557,496
Accounts payable 2,033,542,627 - - - 2,033,542,627
Other payables 537,065,184 - - - 537,065,184
Other current liabilities 50,407,240 - - - 50,407,240
Non-current liabilities due
2,493,836,975 - - - 2,493,836,975
within one year
Long-term payables - 40,906,147 88,330,731 - 129,236,878
Long term loan 159,922,694 1,158,108,565 2,569,845,854 1,040,196,665 4,928,073,778
Total financial liabilities
6,619,481,524 1,199,014,712 2,658,176,585 1,040,196,665 11,516,869,486
and contingent liabilities
The amounts of financial liabilities disclosed in the table above represent undiscounted contractual cash
flows and therefore may differ from the carrying amounts in the balance sheet.
（3）Market risk
Market risk of financial instruments refers to the risk that the fair value or future cash flows of financial
instruments fluctuate due to market price changes, including interest rate risk, exchange rate risk and
other price risks.
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CSG Annual Report 2023
Interest Rate Risk
Interest rate risk refers to the risk that the fair value or future cash flows of financial instruments will
fluctuate due to changes in market interest rates. Interest rate risk can arise from both recognized interest-
bearing financial instruments and unrecognized financial instruments (such as certain loan commitments).
The Group's interest rate risk mainly arises from long-term interest-bearing debt such as long-term bank
borrowings and bonds payable. Financial liabilities with floating interest rates expose the Group to cash
flow interest rate risk, while financial liabilities with fixed interest rates expose the Group to fair value
interest rate risk. The Group determines the relative proportions of fixed-rate and floating-rate contracts
based on the prevailing market environment, and maintains an appropriate mix of fixed-rate and floating-
rate instruments through regular review and monitoring.
The Group pays close attention to the impact of interest rate changes on the Group's interest rate risk.
The Group currently does not adopt an interest rate hedging policy. However, management is responsible
for monitoring interest rate risk and will consider hedging significant interest rate risk if necessary. An
increase in interest rates will increase the cost of new interest-bearing debt and the interest expense of
the Group's unpaid interest-bearing debt with floating interest rates, and will have a significant adverse
impact on the Group's financial results. The management will base on the latest market trends
Adjustments are made in a timely manner to the situation, and these adjustments may be through interest
rate swap arrangements to reduce interest rate risk.
The interest-bearing financial instruments held by the Group are as follows (unit: yuan):
Item 31 December 2023 31 December 2022
Fixed rate contract 1,123,875,582 487,260,925
Floating rate contract 5,097,773,094 3,866,329,055
Total 6,221,648,676 4,353,589,980
For financial instruments held on the balance sheet date that expose the Group to fair value interest rate
risk, the impact on net profit and shareholders' equity in the above sensitivity analysis is based on the
assumption that interest rates change on the balance sheet date. The impact of remeasurement of
financial instruments. For floating rate non-derivative instruments held on the balance sheet date that
expose the Group to cash flow interest rate risk, the impact on net profit and shareholders' equity in the
above sensitivity analysis is the impact of the above interest rate changes on the annual estimated interest
expense or income. Impact. The previous year's analysis was based on the same assumptions and
methodology.
Exchange rate risk
Exchange rate risk refers to the risk that the fair value or future cash flows of financial instruments will
fluctuate due to changes in foreign exchange rates. Exchange rate risk can arise from financial
instruments denominated in foreign currencies other than the functional currency of accounting.
Exchange rate risk is mainly due to the impact of the Group's financial position and cash flows on foreign
exchange rate fluctuations. Except for the subsidiaries established in Hong Kong that hold assets settled
in Hong Kong dollars, the proportion of foreign currency assets and liabilities held by the Group to the
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CSG Annual Report 2023
overall assets and liabilities is not significant. Therefore, the Group believes that the exchange rate risk it
faces is not significant.
At the end of the period , the amounts of foreign currency financial assets and foreign currency financial
liabilities held by the Group converted into RMB are listed as follows (unit: RMB ) :
Foreign currency liabilities Foreign currency assets
Item 31 December
31 December 2023 31 December 2022 31 December 2023
2022
Dollar 26,941,200 28,189,789 297,351,920 160,036,914
Hong Kong dollar 54,917 234,966 15,309,673 8,248,133
Others 1,642,375 4,483,784 7,102,354 6,409,553
Total 28,638,492 32,908,539 319,763,947 174,694,600
The Group pays close attention to the impact of exchange rate changes on the Group's exchange rate
risk. Management is responsible for monitoring exchange rate risk and will consider hedging significant
exchange rate risk if necessary.
As of December 31, 2023, for the Group's various U.S. dollar financial assets and U.S. dollar financial
liabilities, if the RMB appreciates or depreciates by 10% against the U.S. dollar and other factors remain
unchanged, the Group's net profit will decrease or increase by approximately RMB 22,984,911.
(December 31, 2022: decrease or increase of approximately RMB 11,207,006).
2、Capital management
The goal of the Group's capital management policy is to ensure that the Group can continue to operate,
thereby providing returns to shareholders and benefiting other stakeholders, while maintaining an optimal
capital structure to reduce capital costs.
In order to maintain or adjust the capital structure, the Group may adjust financing methods, adjust the
amount of dividends paid to shareholders, return capital to shareholders, issue new shares and other
equity instruments, or sell assets to reduce debt.
The Group monitors the capital structure based on the asset-liability ratio (i.e., total liabilities divided by
total assets). At the end of the period, the Group's asset-liability ratio was 52% (end of the previous year :
48%).
X. Fair value
According to the lowest level input value that is of great significance to the overall measurement in fair
value measurement, the fair value hierarchy can be divided into:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.
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CSG Annual Report 2023
Level 2: The use of observable inputs other than quoted market prices for the asset or liability in Level
1, either directly (i.e., as prices) or indirectly (i.e., as derived from prices).
Level 3: The asset or liability uses any input value that is not based on observable market data
(unobservable input value).
（1）Items and amounts measured at fair value
At the end of the period, assets and liabilities measured at fair value are listed as follows according to
the above three levels:
Level 1 fair value Level 2 fair value Level 3 fair value
Item Total
measurement measurement measurement
1. Continuous fair value
measurement
(1) Accounts receivable financing - - 529,945,623 529,945,623
(2) Investment real estate 290,368,105 290,368,105
During the year, there was no conversion between Level 1 and Level 2 in the fair value measurement of
the Group's financial assets and financial liabilities, nor was there any transfer into or out of Level 3.
For financial instruments traded in active markets, the Group determines its fair value based on active
market quotes; for financial instruments not traded in active markets, the Group uses valuation
techniques to determine its fair value. The valuation models used are mainly discounted cash flow
models and market comparable company models. The input values of valuation technology mainly
include risk-free interest rates, benchmark interest rates, exchange rates, credit spreads, liquidity
premiums, lack of liquidity discounts, etc.
（2）Information related to Level 2 fair value measurement
Valuation
Content Closing fair value Input value
techniques
Investment real estate:
Building area of real estate
Industrial, commercial, residential, office Demarcated land for various purposes,
290,368,105
real estate value method market unit price of real
estate for various purposes
（3）Quantitative information on significant unobservable inputs used in Level 3 fair value
measurements
Closing fair Valuation unobservable input Range (weighted
Content
value techniques value average)
Equity instrument
investment:
Income approach Volatility Counterparty
Receivables Financing 529,945,623 0%-2%
(option pricing Credit Risk Own Credit
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CSG Annual Report 2023
model) Risk
XI. Related parties and related transactions
1、Information about the parent company of the Group
The Group has no parent company.
The Group has no ultimate actual controlling party
2、Information about the Group’s subsidiaries
For details of subsidiaries, please see Note.
3、Information on the Group’s joint ventures and associates
The Group has no joint ventures or associates.
4、Other related parties information
Name of Other Related Party Relationship with the Group
Qianhai Life Insurance Co., Ltd. The largest shareholder of the company
Shantou Chaoshang Urban Comprehensive Related parties of the company's largest shareholder of taking
Management Co., Ltd concerted action
Shenzhen City Special Construction Engineering Co., Related parties of the company's largest shareholder of taking
Ltd. concerted action
Related parties of the company's largest shareholder of taking
Shenzhen Hongtu Construction Co., Ltd.
concerted action
Related parties of the company's largest shareholder of taking
Shen Zhen Golden Flourish Supply Chain Limited
concerted action
Related parties of the company's largest shareholder of taking
Shenzhen Baoneng Auto Sales & Service Co., Ltd.
concerted action
5、Related party transactions
（1）Purchase and sales of goods and rendering and receiving services
1 Purchasing goods and receiving services
Related transaction
Related party 2023 2022
content
Qianhai Life Insurance Co., Ltd. Receive service 7,471,481 7,272,709
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CSG Annual Report 2023
Purchase goods and receive
Other related parties 194,206
services
Total 7,471,481 7,466,915
Note: The Group conducts commodity transactions with related parties based on market prices.
2 Selling goods and providing services
Related
Related party 2023 2022
transaction
Shantou Chaoshang Urban
Sales of goods 599,745 1,397,807
Comprehensive Management Co., Ltd
Shenzhen City Special Construction
Sales of goods 3,502,191 -
Engineering Co., Ltd.
Other related parties Sales of goods 424,523 60,280
Total 4,526,459 1,458,087
Note: The Group conducts commodity transactions with related parties based on market prices.
（2）Key management personnel compensation
Item 2023 2022
Remuneration 18,280,500 25,776,400
6、Accounts receivable and payable from related parties
（1）Amounts receivable from related parties
31 December 2023 31 December 2022
Item Related party Provision
Provision for Carrying
Carrying Amount for bad
bad debts Amount
debts
Accounts Shenzhen Hongtu
8,652,356 7,382,793
receivable Construction Co., Ltd.
Accounts Shen Zhen Golden Flourish
22,090 20,986
receivable Supply Chain Limited
Qianhai Life Insurance Co.,
Prepayments 4,441 572,995
Ltd.
Other
Other related parties 36,000 720
receivables
Total 8,678,887 7,403,779 608,995 720
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CSG Annual Report 2023
（2）Amounts payable to related parties
Item Related party 31 December 2023 31 December 2022
Accounts payable Suzhou Baoqi Logistics Co., Ltd 314,667 314,667
Other payables Qianhai Life Insurance Co., Ltd. 386,589 6,647
Contract liabilities Other related parties 504,538 319,642
Total 1,205,794 640,956
XII. COMMITMENTS AND CONTINGENCIESs
1、Significant commitments
（1）Capital commitments
Capital commitments that have been contracted but not
31 December 2023 31 December 2022
yet recognized in the financial statements
Commitment to purchase and construct long-term assets 3,010,778,541 3,060,099,197
（2）Other commitments
As of December 31, 2023, the Group has no other commitments that should be disclosed.
2、Contingencies
（1）Contingent liabilities arising from pending litigation and arbitration and their financial impact
Court of Target
Plaintiff Defendant Cause of action Case progress
acceptance amount
Zeng Nan, Luo Youming, Disputes over Shenzhen
Our company (Note Wu Guobin, Ding Jiuru, Li liability for Intermediate
229,200,087 Under trial
1) Weinan , Yichang Hongtai harming company People's
Real Estate Co., Ltd. interests Hospital
Fengyang
Fengyang
Wenyang Building Anhui CSG New Energy Disputes over
County
and Decoration Materials Technology Co., creditor's 17,349,467 Under trial
People's
Materials Co., Ltd. Ltd. subrogation rights
Court
(Note 2)
171 million yuan in subsidy funds given to the group by the plaintiff government and the loss of interest
of 58.2 million yuan. As of the announcement date of this report, the case is under trial.
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CSG Annual Report 2023
Note 2: The plaintiff sued Anhui New Energy for subrogation to bear the delayed payment and interest on
the grounds that the concrete from Hefei Construction Materials and Equipment Co., Ltd. was used in the
civil construction project of the defendant Anhui New Energy. As of the announcement date of this report,
the case is under trial. The Company has confirmed all accounts payable with relevant payment
obligations.
XIII. Post-balance sheet events
1、Profit distribution after the balance sheet date
Profit or dividend to be distributed Annual cash dividend of RMB 2.5 per 10 shares
Profits or dividends declared and distributed upon review
767,673,027
and approval
Note: The above profit distribution plan has been reviewed and approved by the company's board of
directors and still needs to be submitted to the company's shareholders' meeting for approval.
XIV. Notes on main items of the parent company’s financial statements
1、Accounts receivable
（1）Disclosure by age
Aging 31 December 2023 31 December 2022
Within 1 year 240,038,959 24,484,628
Less: provision for bad debts - 489,692
Total 240,038,959 23,994,936
（2）Classified disclosure according to bad debt accrual method
31 December 2023
Category Carrying Amount Provision for bad debts
Expected credit loss Book value
Amount Proportion(%) Amount
rate (%)
Provision for bad debts
240,038,959 100 - - 240,038,959
on a portfolio basis
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CSG Annual Report 2023
Continued:
31 December 2022
Category Carrying Amount Provision for bad debts
Expected credit loss Book value
Amount Proportion(%) Amount
rate (%)
Provision for bad
debts on a portfolio 24,484,628 100 489,692 2 23,994,936
basis
Item 31 December 2023 31 December 2022
Dividends receivable 126,870,800 375,057,800
Other receivables 2,030,231,679 1,994,373,982
Total 2,157,102,479 2,369,431,782
2、Other receivables
（1）Dividends receivable
Item (or invested unit) 31 December 2023 31 December 2022
Dividends receivable from subsidiaries 126,870,800 375,057,800
Total 126,870,800 375,057,800
（2）Other receivables
4 Disclosure by age
Aging 31 December 2023 31 December 2022
Within 1 year (including 1 year) 1,753,727,543 1,874,539,007
1 to 2 years 156,829,201 36,000
2 to 3 years 36,000 -
Over 3 years 171,057,770 171,181,656
Total 2,081,650,514 2,045,756,663
Provision for bad debts 51,418,835 51,382,681
Total 2,030,231,679 1,994,373,982
5 Disclosure by nature of payment
31 December 2023 31 December 2022
Item Provision
Carrying Provision for bad Carrying
Book value for bad Book value
Amount debts Amount
debts
Amounts
1,908,899,993 - 1,908,899,993 1,870,622,635 - 1,870,622,635
receivable
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CSG Annual Report 2023
from
related
parties
Others 172,750,521 51,418,835 121,331,686 175,134,028 51,382,681 123,751,347
Total 2,081,650,514 51,418,835 2,030,231,679 2,045,756,663 51,382,681 1,994,373,982
6 Bad debt provisions accrued, recovered or reversed in the current period
Stage 1 Stage 2 Stage 3
Provision for bad Expected credit losses Expected credit losses
Expected credit Total
debts throughout the entire throughout the lifetime
losses over the
duration (no credit (credit impairment has
next 12 months
impairment has occurred) occurred)
Amount on 1st
82,681 51,300,000 51,382,681
January 2023
Carrying amount on
1st January 2023
that in this period:
Accrual in the current
36,154 36,154
year
Amount on 31st
118,835 51,300,000 51,418,835
December 2023
7 The top five companies with closing balances of other receivables collected by debtors
Proportion to the Provision for bad
Other receivables
Nature of total closing balance debts
Company name Aging
payment of other receivables 31 December
31 December 2023
(%) 2023
Advance
Company A 544,019,156 Within 1 year 26
payment
Advance
Company B 246,498,101 Within 1 year 12
payment
More than 5
Company C Other 171,000,000 8 51,300,000
years
Advance
Company D 147,173,182 Within 1 year 7
payment
Advance
Company E 146,072,111 Within 2 years 7
payment
Total 1,254,762,550 60 51,300,000
3、Long-term equity investments
31 December 2023 31 December 2022
Item Carrying Provision for Carrying Provision for
Book value Book value
amount impairment amount impairment
Investment in
9,821,533,769 15,000,000 9,806,533,769 7,853,487,027 15,000,000 7,838,487,027
subsidiaries
Total 9,821,533,769 15,000,000 9,806,533,769 7,853,487,027 15,000,000 7,838,487,027
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CSG Annual Report 2023
(1) Investment in subsidiaries
Provision
for Closing
Decrease
1 January Increased in 31 December impairment balance of
Investee in this
2023 this issue 2023 in the impairment
period
current provision
period
Chengdu CSG Company 151,397,763 151,397,763
Sichuan Energy Saving
119,256,949 119,256,949
Company
Tianjin Energy Saving
247,833,327 247,833,327
Company
Dongguan Engineering
198,276,242 24,000,001 222,276,243
Company
Dongguan Solar Energy
355,120,247 355,120,247
Company
Dongguan Photovoltaic
382,112,183 50,000,000 432,112,183
Company
Yichang Silicon Materials
909,960,170 909,960,170
Company
Wujiang Engineering
254,401,190 254,401,190
Company
Hebei CSG Company 266,189,705 266,189,705
CSG (Hong Kong) Co., Ltd. 87,767,304 87,767,304
Wujiang CSG Company 567,645,430 567,645,430
Jiangyou CSG Mining
102,415,096 102,415,096
Development Co., Ltd.
Xianning Float Co., Ltd. 181,116,277 181,116,277
Xianning Energy Saving
165,452,035 165,452,035
Company
Qingyuan Energy Saving
885,273,105 885,273,105
Company
Shenzhen CSG Financial
133,500,000 133,500,000
Leasing Co., Ltd.
Shenzhen Display Device
550,765,474 550,765,474
Company
Zhaoqing Energy Saving
150,000,000 50,000,000 200,000,000
Company
Zhaoqing CSG Automotive
116,047,333 43,911,741 159,959,074
Glass Co., Ltd.
Anhui New Energy
1,300,000,000 250,000,000 1,550,000,000
Company
Anhui Quartz Company 75,000,000 75,000,000
Anhui CSG Silicon Valley
Mingdu Mining 120,000,000 96,000,000 216,000,000
Development Co., Ltd.
Xi'an Energy Saving
41,365,000 41,135,000 82,500,000
Company
Guangxi New Energy
57,000,000 170,000,000 227,000,000
Materials Company
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CSG Annual Report 2023
CSG (Suzhou) Corporate
Headquarters Management 30,000,000 30,000,000
Co., Ltd.
Shenzhen CSG Quartz
Materials Industrial Co., 3,000,000 37,000,000 40,000,000
Ltd.
Shenzhen CSG New
Energy Industry 120,000,000 1,230,000,000 1,350,000,000
Development Co., Ltd.
Others 267,592,197 1 24,000,001 243,592,197 15,000,000
Total 7,838,487,027 1,992,046,743 24,000,001 9,806,533,769 - 15,000,000
4、Operating income and operating costs
2023 2022
Item
Revenue Cost Revenue Cost
Principal operation 2,599,280 - 2,232,800 -
Other operations 396,903,690 - 371,474,846 -
Total 399,502,970 - 373,707,646 -
5、Investment income
Item 2023 2022
Investment income from long-term equity accounted for by the
cost method 1,680,533,152 841,070,857
Investment income during the holding period of financial assets
- 27,665,396
at fair value
Others 3,106,870 3,902,458
Total 1,683,640,022 872,638,711
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CSG Annual Report 2023
XV. Other important matters
1、Segment reporting
Based on the Group's internal organizational structure, management requirements and internal reporting system, the Group's operating business is divided into
four reporting segments. These reporting segments are determined based on the financial information required by the company for daily internal management.
The Group's management regularly evaluates the operating results of these reportable segments to determine the allocation of resources to them and evaluate
their performance.
The Group's reportable segments include:
-The Glass Division is responsible for the production and sales of float glass, photovoltaic glass products, engineering glass products, and silica sand required for
the production of related glass.
-The Electronic Glass and Display device Division is responsible for the production and sales of display components and special ultra-thin glass products.
-The Solar Energy and Others segment is responsible for the production and sales of polysilicon and solar cell module products, photovoltaic energy development
and other products.
-Other unallocated divisions.
Segment reporting information is disclosed based on the accounting policies and measurement standards adopted by each segment when reporting to
management. These accounting policies and measurement basis are consistent with those used when preparing financial statements.
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CSG Annual Report 2023
（1）Segment profit or loss, assets and liabilities
This period or the end Electronic glass and di Solar energy and other Inter-segment
Glass industry Unallocated amount Total
of this period splay device industries elimination
External transaction
14,571,967,724 1,439,212,230 2,180,787,397 2,897,015 18,194,864,366
income
Inter-segment
113,589,560 133,430,006 67,534,255 397,276,839 - 711,830,660
transaction income
Interest expense 124,392,065 6,449,011 2,251,713 95,066,849 228,159,638
Depreciation and
858,676,426 241,304,733 131,434,481 22,534,741 1,253,950,381
amortization
The total profit 1,536,505,236 - 259,703,377 292,873,265 62,520,809 1,632,195,933
Total assets 17,879,556,268 3,271,543,296 6,244,315,346 2,966,642,402 30,362,057,312
Total liabilities 9,739,294,245 694,438,760 2,275,626,502 3,115,991,636 15,825,351,143
Increase in non-current
3,356,547,127 93,647,705 2,854,803,508 8,622,636 6,313,620,976
assets
Last period or last Electronic glass and displ Solar energy and other Inter-segment
Glass industry Unallocated amount Total
period end ay device industries elimination
External transaction
9,894,002,863 1,470,587,932 3,831,603,860 2,512,343 15,198,706,998
income
Inter-segment transaction
162,736,393 172,495,899 56,978,902 371,837,218 -764,048,412 -
income
Interest expense 26,741,659 7,271,418 383,249 178,327,937 212,724,263
Depreciation and
613,677,200 230,804,196 150,003,099 6,667,747 1,001,152,242
amortization
The total profit 1,162,517,806 185,946,481 1,072,267,930 -141,857,270 2,278,874,947
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CSG Annual Report 2023
Total assets 14,816,107,672 3,657,683,773 3,839,214,143 3,591,007,718 25,904,013,306
Total liabilities 6,870,531,882 700,657,854 554,483,116 4,402,669,151 12,528,342,003
Increase in non-current
3,377,508,584 309,339,498 307,531,029 8,374,505 4,002,753,616
assets
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CSG Annual Report 2023
XVI. Additional materials
1、Detailed statement of non-recurring profits and losses for the current period
Amount incurred
Item Illustrate
this period
Gains and losses on disposal of non-current assets, including the
-9,628,136
write-off portion of asset impairment provisions
Government subsidies included in the current profit and loss, except
for government subsidies that are closely related to the company's
normal business operations, comply with national policies and 118,358,356
regulations, are enjoyed in accordance with determined standards,
and have a lasting impact on the company's profits and losses.
In addition to the effective hedging business related to the company's
normal operating business , non-financial enterprises' gains and
losses from changes in fair value arising from holding financial assets 3,106,870
and financial liabilities and gains and losses arising from the disposal
of financial assets and financial liabilities
Reversal of impairment provision for accounts receivable that has
8,757,040
been individually tested for impairment
Debt restructuring gains and losses 4,908,612
Other non-operating income and expenses other than the above 18,833,212
Total non-recurring gains and losses 144,335,954
Less: Income tax impact on non-recurring gains and losses 21,244,208
Net non-recurring gains and losses 123,091,746
Less: Net impact of non-recurring gains and losses attributable to
3,336,083
minority shareholders (after tax)
Non-recurring gains and losses attributable to the company’s
119,755,663
ordinary shareholders
2、ROE and earnings per share
Earnings per share
Weighted average
Profit during the reporting period Basic earnings per Diluted earnings
return on equity %
share per share
Net profit attributable to the company’s
12.30 0.54 0.54
ordinary shareholders
Net profit attributable to the company's
ordinary shareholders after deducting non- 11.41 0.50 0.50
recurring gains and losses
Board of Directors of
CSG Holding Co., Ltd.
26 April 2024
208
