CSG HOLDING CO., LTD.
THE THIRD QUARTER REPORT 2011
Chairman of the Board:
ZENG NAN
October 2011
CSG HOLDING CO., LTD. The Third Quarter Report 2011
I Important Notes
i The Board of Directors and the Supervisory Committee of CSG Holding Co., Ltd.
(hereinafter referred to as the Company), along with its directors, supervisors and senior
executives hereby confirms that there are no important omissions, fictitious statements or
serious misleading information carried in this report, and shall take all responsibilities,
jointly and severally, for the truthfulness, accuracy and completeness of the whole
contents.
ii No director, supervisor or senior executive stated any objection for the correctness,
accuracy and completeness of the contents of this report.
iii The third quarter financial report of 2011 has not been audited.
iv Mr. Zeng Nan, Chairman of the Board & CEO of the Company, CFO Mr. Luo Youming
and principle of the financial department Mr. Huang Yanbin confirm that the Financial
Report enclosed in this report is true and complete.
v This report is prepared both in Chinese and in English. Should there be any difference in
interpretation of the text between the two versions, the Chinese version shall prevail.
II Company Profile
i Main Accounting Data and Financial Indexes
Unit: RMB
30 September 2011 31 December 2010 Increase/decrease (%)
Total assets 14,933,070,069 12,469,619,167 19.76%
Total equity attributable to equity
6,783,759,474 6,384,871,209 6.25%
holders of the Company
Capital (share) 2,076,143,060 2,076,721,060 -0.03%
Total equity per share for equity
3.27 3.07 6.51%
holders of the Company
Increase/Decrease in From 1 January to Increase/Decrease in
The 3rd quarter in comparison with the 30 September comparison with the
2011 same period of 2010 2011 same period of 2010
Revenue 2,067,750,476 -0.28% 6,506,284,578 18.76%
Net profit attributable to equity
272,443,398 -32.83% 1,110,086,740 6.58%
holders of the Company
Net cash flows from operating
- - 1,231,616,521 -20.50%
activities
Net cash flows from operating
- - 0.59 -20.48%
activities per share
Basic earnings per share Note 0.13 -35.00% 0.53 6.00%
Diluted earnings per share Note 0.13 -35.00% 0.53 6.00%
Decrease 3.05 Decrease 1.64
Weighted average return on equity 4.11% 16.76%
percentage points percentage points
Weighted average return on equity Decrease 3.18 Decrease 1.79
3.88% 15.95%
after extraordinary gains and losses percentage points percentage points
Note: The financial data in the same period last year have been adjusted as new paid-in capital.
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CSG HOLDING CO., LTD. The Third Quarter Report 2011
Items of extraordinary gains and losses Amount From 1 January to 30 September 2011
Gain and losses on disposal of non-current assets -198,005
Government subsides recognized as gains and losses 50,627,104
Net income of share transfer 4,392,843
Net value of other non-operating expenses 13,316,554
Tax effects on extraordinary gain and losses -10,117,463
Extraordinary gains and losses of minority interests -4,145,846
Total 53,875,187
ii Total number of shareholders and statement of shares held by the top ten shareholders
with unrestricted conditions at the end of the report period.
Unit: Share
Total shareholders: 234,511（Including: 188,875 shareholders of A-share and 45,636 shareholders of B-share）
Particulars about the shares held by the top ten unrestricted shareholders
Name of shareholder Unrestricted shares held Share type
China Northern Industries Corporation 75,167,934 A-share
Xing Tong Chan Industrial Development (Shenzhen) Co., Ltd. 67,740,000 A-share
Shenzhen International Holdings (Shenzhen) Co., Ltd. 65,430,000 A-share
China Ping An Trust & Investment Co., Ltd. 60,035,000 A-share
China Construction Bank -Yinhua Core Value Select Stock Fund 54,037,019 A-share
Bank of Communication – Boshi New Growth Stock Fund 48,255,817 A-share
Bank of China – Dacheng Blue-chip Steady Securities Fund 18,168,953 A-share
ICBC—Guangfa Jufeng Stock Fund 17,139,827 A-share
Bank of China－ E-fund Shenzhen Stock Exchange 100ETF 16,647,657 A-share
Invesco Fund Sseries 5 14,659,658 B-share
III Significant events
i Particulars about material changes and reasons in items of main accounting statement and
financial index.
√Applicable □Non-applicable
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CSG HOLDING CO., LTD. The Third Quarter Report 2011
Unit: RMB’0000
Increase/
30 September 31 December Amount decrease
Item Note 2011 2010 of change (%)
Accounts receivable (a) 55,429 24,220 31,209 129%
Other receivables (b) 4,296 6,662 (2,366) (36%)
Inventories (c) 67,386 47,874 19,513 41%
Other current assets (d) 4,156 2,491 1,665 67%
Construction in progress (e) 216,094 78,608 137,487 175%
Intangible assets (f) 79,721 38,128 41,593 109%
Research and development expenditure (g) 1,653 314 1,339 426%
Other non-current liabilities (h) 8,144 23,303 (15,159) (65%)
Short-term borrowings (i) 173,789 87,713 86,076 98%
Employee benefits payable (j) 10,294 18,700 (8,406) (45%)
Taxes payable (k) (595) 12,123 (12,718) (105%)
Interest payable (l) 10,767 2,459 8,308 338%
Other payables (m) 65,985 16,139 49,846 309%
Current portion of non-current liabilities (n) 21,563 7,569 13,994 185%
Long-term borrowings (o) 126,093 72,820 53,272 73%
Special payables (p) 105 70 35 51%
Other non-current liabilities (q) 27,260 17,354 9,907 57%
Special reserve (r) 1,072 568 504 89%
From 1 January to From 1 January Increase/
30 September to 30 September Amount decrease
2011 2010 of change (%)
Taxes and surcharges (s) 4,288 380 3,908 1029%
Financial expenses (t) 10,583 7,736 2,847 37%
Asset impairment losses (u) 615 360 255 71%
Investment income (v) 570 1,132 (563) (50%)
Non-operating income (w) 6,587 3,643 2,944 81%
Non-operating expenses (x) 213 483 (270) (56%)
Note:
(a) The increase of accounts receivable is because of the growth of sales, foreign sales settlement by L/C in particular.
(b) The decrease of other receivables is because of the reduction of export tax rebate.
(c) The increase of inventories is because of the enlargement of business scale of the Company.
(d) The increase of other current assets is because of the increase of assets held ready for sales.
(e) The increase of construction in progress is because of the investment of projects construction as scheduled this year.
(f) The increase of intangible assets is because of newly increase of land for production.
(g) The increase of research and development expenditure is because part of the expenditure from R&D projects meets
capitalization qualification, and listed as research and development expenditures in statement according to
Accounting Rules.
(h) The decrease of other non-current liabilities is because the land transfer fee paid in advance was carried forward as
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CSG HOLDING CO., LTD. The Third Quarter Report 2011
intangible assets.
(i) The increase of short-term borrowings is because of the increase of bank loans and placement of short-term
financing bond.
(j) The decrease of employee benefits payable is because bonus fund for management team withdrawal last year was
paid within this period.
(k) The decrease of taxes payable is because of the increase of input tax that will offset at end of the report period.
(l) The increase of interest payable is because the provision of accrued payable bond interest was not due for payment.
(m) The increase of other payables is because equity transfer fee of Guangzhou CSG Glass Co., Ltd was received in
advance.
(n) The increase of current portion of non-current liabilities is because part of the long-term loans will expire within one
year.
(o) The increase of long-term borrowings is because of the increase of loans from construction in progress.
(p) The increase of special payables is because Dongguan CSG Solar Glass Co, Ltd., subsidiary of the Company,
received special appropriation from financial department of local government.
(q) The increase of other non-current liabilities is because of the increase of interest-free loans from local government to
Yichang CSG Silicon Co., Ltd., subsidiary of the Company increased.
(r) The increase of special reserve is because of the provision of safety production charge for this year of Yichang CSG
Silicon Co., Ltd., subsidiary of the Company.
(s) The increase of taxes and surcharges is because that as a foreign investment enterprise, the company didn’t enjoy the
reduction and exemption policy on city construction tax and educational surcharge any more.
(t) The increase of financial expenses is because of the growth of bank loans and soaring interest rates.
(u) The increase of asset impairment losses is because of the increase of balance of account receivable resulting in the
growth of accrued bad debt provision.
(v) The decrease of investment income is because of no transfer income from relevant financial assets available for sales
in this year.
(w) The increase of non-operating income is because of the increase of government grants.
(x) The decrease of non-operating expenses is because of the loss from assets obsolescence reduced in this year.
ii Analysis and explanation of significant events and their influence and solutions
(i) Qualified opinion
□Applicable √Non-applicable
(ii) Particular about fund offers to controlling shareholders and associated parties, and
external guarantee that against the regulation.
□Applicable √Non-applicable
(iii)Particular about signing and implementation on significant contracts of ordinary
management
□Applicable √Non-applicable
(iv) Others
√Applicable □Non-applicable
A. Implementation of incentive plan
According as Restricted A Shares Incentive Plan (hereinafter referred to Incentive Plan) approved by Shareholders’ General
Meeting, the Company issued 49.14 million restricted A-shares through private offering in total to 244 specific employees
privately in July 2008, at price of RMB 8.58 per share. The raised fund was RMB 421,621,200.
(a) On 18 June 2009 and 20 January 2010, the Company has bought back and wrote off total 14,407,500 restricted A
shares respectively. Among these, amount 12,062,500 restricted A shares has been bought back and wrote off because
the achievement index of the Company in 2008 didn’t satisfied unlocking conditions, amount 2,345,000 restricted A
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CSG HOLDING CO., LTD. The Third Quarter Report 2011
shares has been bought back and wrote off because 22 former incentive staffs resigned and didn’t accord with the
qualification of incentive plan.
(b) On 13 May 2010, the Company implemented 2009 Annual Equity Distribution Plan, namely sending RMB 3.50 (tax
included) in cash for every 10 shares to all shareholders, and provided share capital converted from capital reserves
with 7 shares increased for each 10 shares at the same time. The amount of incentive restricted A shares added from
34,732,500 shares to 59,045,250 shares
On 26 March 2010, the 13th meeting of the 5th Board of Directors examined and considered that the Phase II
restricted shares held by incentive staffs satisfied unlocking conditions according to the regulations of Restricted A
Shares Incentive Plan. On 25 June 2010, there were total 19,035,750 restricted A shares held by 214 incentive staffs
met qualification of unlock and has been listed for trading.
(c) On 30 July 2010 and 28 January 2011, the Company has bought back and wrote off total 2,439,500 restricted A
shares respectively because there were 14 former incentive staffs had resigned and didn’t accord with the
qualification of incentive plan.
(d) On 18 March 2011, the 20th meeting of the 5th Board of Directors examined and considered that the Phase III
restricted shares held by incentive staffs satisfied unlocking conditions according to the regulations of Restricted A
Shares Incentive Plan. On 24 June 2010, there were total 18,632,000 restricted A shares held by 206 incentive staffs
met qualification of unlock and has been listed for trading.
(e) On 14 October 2011, there were total 306,000 restricted A shares held by 2 original incentive staffs has been bought
back and wrote off because 2 former incentive staffs resigned and didn’t accord with the qualification of inventive
plan.
Details of the aforesaid could be found in relevant notices published on China Securities Journal, Securities Times, Hong
Kong Wen Wei Po and Juchao Information website (www.cninfo.com.cn) dated 19 June 2009 as well as published on
China Securities Journal, Securities Times, Hong Kong Commercial Daily and Juchao Information website
(www.cninfo.com.cn) dated 22 January, 26 May, 24 June, 31 July 2010, and 29 January, 22 March, 16 April, 4 June, 23
June and 15 October 2011.
B. Corporate bonds
On 23 November 2009, the 2nd Extraordinary Shareholders’ General Meeting 2009 of the Company approved Proposal on
Issuing Corporate Bonds, and agreed the Company to issue unsecured corporate bonds with the amount of RMB 2 billion,
the duration lasted less than 7 years (including 7). The bonds with single period or multiple periods both were allowed, and
the Company didn’t plan to distribute and sell bonds to the original shareholders preferentially. These raised funds intend to
be used in paying back for short-term bank borrowings and complementing operation capitals of the Company. On the
premise of fulfilling listed conditions, Shareholders’ General Meeting of Shareholders authorized Board of Directors to
deal with the listing issues of the corporate bonds according to relevant regulations of Stock Exchanges.
On 11 October 2010, the bond issuance of the Company received the approval of Reply on Public Bond Issuance of CSG
Holding Co., Ltd. (ZJXK[2010] No. 1369) issued from CSRC.
On 18 October 2010, the Notice of Company Bond Issuance 2010 published with totaling amount of RMB 2 billion, RMB
100 per piece for issue price. The issuance adopted the combination of publicly offered to social investors on net and
agreement offered to institution investor off net.
On 25 October 2010, the bond offering was closed with the situation as: the bond divided into two varieties with 5-year and
7-year, in which variety I was the 5-year product with RMB 1 billion issuance scale, variety II was the 7-year product with
RMB 1 billion issuance scale. At the same time, attached with option of up-regulate coupon rate of issuer and re-sale
option of investors. More details found in Notice of Issuance Results on Company Bond 2010 published at China Securities
Journal, Securities Times, Hong Kong Commercial Daily and Juchao Website (www.cninfo.com.cn) dated 26 October
2010. The bond listed on 10 November 2010. The short form of the stock for 5-year bond is “10CSG01”, and the stock
code is 112021; the short form of the stock for 7-year bond is “10CSG02”, and the stock code is 112022.
C. Non-public issue of A stock to specific investors
The Company planed to issue less than 0.25 billion shares of A stock to no more than 10 specific investors through private
placement. The total amount raised couldn’t be beyond RMB 4 billion. This event has been approved on the 2nd
extraordinary shareholders’ meeting of 2011, and still waiting for approval from CSRC. More details can be found in
relevant notices published at China Securities Journal, Securities Times, Hong Kong Commercial Daily and Juchao
Website (www.cninfo.com.cn) dated 19 January, 22 March and 8 April 2011.
D. Short-term financing bond
On 15 April 2011, the Annual Shareholders’ General Meeting of the Company approved the proposal of issuing short-term
financing bond. The meeting agreed the Company to apply for short-term financing bond issuance with RMB0.7 billion
limit. On 5 August 2011, the registration of the short-term financing bond with RMB 0.7 billion in total, expires till August
2013, was approved on 34th Registration Meeting 2011 held by Registration Committee of the National Association of
Financial Market Institutional Investors. Co-lead underwriters for the aforesaid short-term financing bond were China
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CSG HOLDING CO., LTD. The Third Quarter Report 2011
Construction Bank Corporation Ltd and China Merchants Bank Co., Ltd. And offering publicly to institutional investors of
Association of Bond Market national wide by means of group placing after bookkeeping for file. The offering can
implement by phases within expiration date of registration. Totaling RMB 0.7 billion short-term financing bonds, 365 days
for term, were offered by the Company successfully on 15 September 2011. Relevant details can be found in China bond
information net (www.chinabond.com.cn) and China money net (www.chinamoney.com.cn).
E. Progress of internal control construction
According to the requirement of Notice of Relevant Works of Pilot Specification on Internal Control for Listed Company in
Shenzhen (SZJGSZ[2011] No. 31 issued by Shenzhen Securities Regulatory Bureau, the Implementation Plan of Internal
Control for CSG Holding Co., Ltd. was approved on 2nd Meeting of the 6th Board of Directors held on 21 April 2011.
Monthly and quarterly report of internal control works of the Company were submitted on time within report period.
Meanwhile, examination was conducted by the Company in process of internal control, midterm auditing for internal
control was implemented by the Company in cooperated with external auditors; moreover, the Company has improved the
standard of defects assessment and designed the template of defects evaluation.
iii Implementations of commitments by the Company, shareholders and actual controller
√Applicable □Non-applicable
Item of Commitments Promisee Content of commitments Implementation
Commitments for Share The original The Company has implemented share merger reform in By the end of
Merger Reform non-tradable May 2006. Till June 2008, the share of the original the report
shareholder non-tradable shareholders which holding over 5% total period, the
Shenzhen shares of the Company had all released. Therein, the original
International original non-tradable shareholder Shenzhen International non-tradable
Holdings (SZ) Holdings (SZ) Limited (with former name of Yiwan shareholders of
Limited and Xing Industrial Development (Shenzhen) Co., Ltd. ) and Xing the Company
Tong Chan Industrial Tong Chan Industrial Development (Shenzhen) Co., Ltd. have strictly
Development both are wholly-funded subsidiaries to Shenzhen carried out their
(Shenzhen) Co., Ltd. International Holdings Limited (hereinafter Shenzhen promises.
International for short) listed in Hong Kong united stock
exchange main board. On 9 July 2009, Shenzhen
International held the Shareholders’ General Meeting and
authorized its board of directors to sale the CSG A share
held by Shenzhen International at price of no less than
RMB 8.5. At the same time, Shenzhen International made
commitment that it would strictly carry out related
regulations of Securities Law, Administration of the
Takeover of Listed Companies Procedures and Guiding
Opinions on the Listed Companies’ Transfer of Original
Shares Released from Trading Restrictions issued by
CSRC during implementing share decreasingly-held plan
and take information disclosure responsibility timely.
Commitments made in - - -
Acquisition Report or
Reports on Change in
Interests
Commitments made in - - -
Material Assets
Reorganization
Commitments made in - - -
issuing
Other commitments - - -
(including additional
commitments)
iv Estimation of accumulative net profit from the beginning of the year to the end of next
report period to be loss probably or the warning of its material change compared with the
corresponding period of the last year and explanation of reason
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CSG HOLDING CO., LTD. The Third Quarter Report 2011
□Applicable √Non-applicable
v Other significant events
(i) Particular about security investment
□Applicable √Non-applicable
(ii) Reception of investigation, communication and interview in the report period
Date Place Method Investor
2011.8.9 Conference room Spot investigation Minsheng Securities Co., Ltd.
2011.8.10 Conference room Telephone Boshi Fund Management Co., Ltd., BOC Schroder Fund
communication Management Co., Ltd., Changsheng Fund Management Co.,
Ltd., CICC, Citic Securities Co., Ltd., Essence Securities Co.,
Ltd., Great Wall Fund Management Co., Ltd., Guotai Junan
Securities Co., Ltd., Guangfa Securities Co., Ltd., Harvest Fund
Management Co., Ltd., Morgan Stanley Huaxin Fund
Management Co., Ltd., UBS SDIC Fund Management Co.,
Ltd., Yinhua Fund Management Co., Ltd. and others more than
40 funds and securities company.
2011.8.17 Conference room Telephone
Qilu Securities Limited
communication
2011.8.22 Conference room Telephone
Shenzhen Dingshi Assets Management Co., Ltd.
communication
2011.8.26 Conference room Spot investigation Beijing Gaohua Securities Co., Ltd.
Hong Yuan Securities Co., Ltd.
Shanghai International Trust Corp. Ltd.
Shanghai Securities Co., Ltd.
2011.9.2 Conference room Spot investigation ABN AMRO TEDA Fund Management Co., Ltd.
Huachuang Securities Co., Ltd.
Zhongshan Securities Co., Ltd.
2011.9.22 Conference room Spot investigation Dongxing Securities Co.
Guosen Securities Co., Ltd.
Contents discussed and materials supplied Introduction the disclosed information about operation and
production of the Company.
vi Particular about derivatives investment
□Applicable √Non-applicable
(i) Particular about derivatives investment held at the end of report period
□Applicable √Non-applicable
IV Financial Statement
i Balance Sheet
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CSG HOLDING CO., LTD. The Third Quarter Report 2011
Prepared by: CSG Holding Co., Ltd. 30 September 2011 Unit: RMB
30 September 2011 31 December 2010
Items
Consolidated Company Consolidated Company
Current assets
Cash in bank and on hand 905,061,894 265,688,726 787,481,275 373,901,165
Notes receivable 358,249,361 - 362,674,115 -
Accounts receivable 554,294,897 - 242,201,307 -
Advances to suppliers 129,171,347 40,000 107,782,146 40,000
Dividends receivable - - - 5,298,425
Other receivables 42,962,293 1,525,798,724 66,622,324 811,564,853
Inventories 673,863,915 - 478,735,794 -
Other current assets 41,562,673 - 24,914,873 -
Total current assets 2,705,166,380 1,791,527,450 2,070,411,834 1,190,804,443
Non-current assets
Available-for-sale financial assets - - - -
Long-term receivables - 2,257,165,996 - 2,316,038,617
Long-term equity investments 65,803,688 4,398,038,443 65,501,259 3,633,845,531
Fixed assets 9,017,374,192 14,718,269 8,830,895,516 27,627,216
Construction in progress 2,160,943,619 - 786,077,413 -
Intangible assets 797,210,901 3,648,184 381,276,917 5,600,854
Development expenditure 16,530,141 - 3,142,226 -
Goodwill 18,404,380 - 18,404,380 -
Long-term prepaid expense 1,053,764 - 1,002,500 -
Deferred tax assets 69,143,004 - 79,877,237 -
Other non-current assets 81,440,000 - 233,029,885 21,840,000
Total non-current assets 12,227,903,689 6,673,570,892 10,399,207,333 6,004,952,218
Total assets 14,933,070,069 8,465,098,342 12,469,619,167 7,195,756,661
Current liabilities
Short-term borrowings 1,737,888,687 761,969,640 877,132,815 111,620,900
Notes payable 174,779,653 - 237,891,481 -
Accounts payable 996,493,215 - 950,310,253 -
Advances from customers 143,686,988 - 161,127,001 -
Employee benefits payable 102,937,838 11,427,035 186,997,327 97,163,797
Taxes payable -5,950,925 915,100 121,232,388 1,198,110
Interest payable 107,671,174 6,679,335 24,589,510 1,314,600
Dividends payable 687,627 687,627 687,627 687,627
Other payables 659,851,211 876,963,423 161,386,242 480,805,365
Current portion of non-current liabilities 215,633,201 - 75,690,541 -
Other current liabilities 2,926,872 - 2,926,872 -
Total current liabilities 4,136,605,541 1,658,642,160 2,799,972,057 692,790,399
Non-current liabilities
Long-term borrowings 1,260,926,074 - 728,203,612 -
Bonds payables 1,981,418,048 1,981,418,048 1,978,479,422 1,978,479,422
Special payables 1,053,719 - 700,008 -
Deferred tax liabilities 23,560,091 7,937,236 29,507,743 8,149,616
Other non-current liabilities 272,603,818 - 173,537,976 -
Total non-current liabilities 3,539,561,750 1,989,355,284 2,910,428,761 1,986,629,038
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CSG HOLDING CO., LTD. The Third Quarter Report 2011
Total liabilities 7,676,167,291 3,647,997,444 5,710,400,818 2,679,419,437
Owners' equity
Paid-in capital 2,076,143,060 2,076,143,060 2,076,721,060 2,076,721,060
Capital surplus 1,321,936,863 1,383,368,716 1,309,834,212 1,359,890,506
Less: Treasury stock 306,000 306,000 578,000 578,000
Special reserve 10,720,076 - 5,683,705 -
Surplus reserve 506,530,148 506,530,148 506,530,148 506,530,148
Undistributed profits 2,868,135,730 851,364,974 2,484,699,065 573,773,510
Translation difference of foreign currency financial 599,597 - 1,981,019 -
statements
Total equity attributable to equity holders of the 6,783,759,474 4,817,100,898 6,384,871,209 4,516,337,224
Company
Minority interest 473,143,304 - 374,347,140 -
Total owners' equity 7,256,902,778 4,817,100,898 6,759,218,349 4,516,337,224
Total liabilities and owner’s equity 14,933,070,069 8,465,098,342 12,469,619,167 7,195,756,661
ii Income Statement from July to September 2011
Prepared by: CSG Holding Co., Ltd. July to September in 2011 Unit: RMB
July to September in 2011 July to September in 2010
Items
Consolidated Company Consolidated Company
1. Total revenue 2,067,750,476 1,065,932 2,073,630,567 78,000
Incl. Revenue 2,067,750,476 1,065,932 2,073,630,567 78,000
2. Total cost 1,707,066,409 19,154,460 1,560,949,356 15,134,538
Incl. Cost of sales 1,446,089,410 61,291 1,344,033,802 4,025
Taxes and surcharges 15,537,197 - 1,342,010 -
Selling and distribution expenses 57,361,014 - 66,734,966 -
General and administrative expenses 146,253,013 16,376,512 126,454,674 13,961,671
Financial (expenses)/income - net 40,623,406 2,716,657 19,883,181 1,168,842
Asset impairment losses 1,202,369 - 2,500,723 -
Add: Investment income -801,520 -801,520 2,268,000 7,456,567
3. Operating profit (“-“ for loss) 359,882,547 -18,890,048 514,949,211 -7,599,971
Add: Non-operating income 23,967,362 4,294,527 6,386,022 -
Less: Non-operating expenses 1,444,475 1,762 2,081,724 54,894
Including: Loss on disposal of non-current assets 1,209,476 1,762 1,721,387 10,682
4. Total profit (“-“ for loss) 382,405,434 -14,597,283 519,253,509 -7,654,865
Less: Income tax expenses 69,224,449 - 76,149,603 -
5. Net profit (“-“ for net loss) 313,180,985 -14,597,283 443,103,906 -7,654,865
Attributable to equity holders of the Company 272,443,398 -14,597,283 405,596,733 -7,654,865
Minority interest 40,737,587 - 37,507,173 -
6. Earnings per share
(1) Basic 0.13 - 0.20 -
(2) Diluted 0.13 - 0.20 -
7. Other complex income -1,508,872 - -1,853,068 -
8. Total complex income 311,672,113 -14,597,283 441,250,838 -7,654,865
Attributable to equity holders of the Company 270,934,526 -14,597,283 403,743,665 -7,654,865
Attributable to equity holders of minority interest 40,737,587 - 37,507,173 -
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CSG HOLDING CO., LTD. The Third Quarter Report 2011
iii Income Statement from January to September 2011
Prepared by: CSG Holding Co., Ltd. January to September in 2011 Unit: RMB
January to September in 2011 January to September in 2010
Items
Consolidated Company Consolidated Company
1. Total revenue 6,506,284,578 2,479,239 5,478,698,571 78,000
Incl. Revenue 6,506,284,578 2,479,239 5,478,698,571 78,000
2. Total cost 5,085,105,349 55,478,424 4,173,097,373 43,295,330
Incl. Cost of sales 4,322,413,812 432,531 3,549,997,367 4,025
Taxes and surcharges 42,881,002 - 3,796,565 -
Selling and distribution expenses 196,815,255 - 191,299,539 -
General and administrative expenses 411,012,116 50,625,419 347,047,205 43,220,889
Financial (expenses)/income - net 105,833,510 4,420,474 77,359,370 70,416
Asset impairment losses 6,149,654 - 3,597,327 -
Add: Investment income 5,695,272 1,052,539,196 11,323,044 713,284,738
3. Operating profit (“-“ for loss) 1,426,874,501 999,540,011 1,316,924,242 670,067,408
Add: Non-operating income 65,872,412 4,494,527 36,434,325 220,000
Less: Non-operating expenses 2,126,759 5,384 4,826,373 72,306
Including: Loss on disposal of non-current assets 1,570,423 5,384 2,275,196 15,626
4. Total profit (“-“ for loss) 1,490,620,154 1,004,029,154 1,348,532,194 670,215,102
Less: Income tax expenses 258,651,736 -212,380 203,749,672 -
5. Net profit (“-“ for net loss) 1,231,968,418 1,004,241,534 1,144,782,522 670,215,102
Attributable to equity holders of the Company 1,110,086,740 1,004,241,534 1,041,548,328 670,215,102
Minority interest 121,881,678 - 103,234,194 -
6. Earnings per share:
(1) Basic 0.53 - 0.50 -
(2) Diluted 0.53 - 0.50 -
7. Other complex income 68,578 - -6,124,195 -6,184,231
8. Total complex income 1,232,036,996 1,004,241,534 1,138,658,327 664,030,871
Attributable to equity holders of the Company 1,110,155,318 1,004,241,534 1,035,424,133 664,030,871
Attributable to equity holders of minority interest 121,881,678 - 103,234,194 -
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CSG HOLDING CO., LTD. The Third Quarter Report 2011
iv Cash Flow Statement
Prepared by: CSG Holding Co., Ltd. January to September in 2011 Unit: RMB
January to September in 2011 January to September in 2010
Items
Consolidated Company Consolidated Company
1. Cash flows from operating activities
Cash received from sales of goods or rendering of services 6,982,130,973 - 6,153,401,436 -
Refund of taxes and levies 170,244,219 - 35,128,718 -
Cash received relating to other operating activities 91,771,196 4,641,481 53,723,130 3,037,062
Sub-total of cash inflows 7,244,146,388 4,641,481 6,242,253,284 3,037,062
Cash paid for goods and services 4,276,591,772 - 3,386,934,560 -
Cash paid to and on behalf of employees 671,840,534 136,114,996 478,548,309 84,362,122
Payments of taxes and levies 792,085,095 464,786 564,068,579 772,401
Cash paid relating to other operating activities 272,012,466 5,524,822 263,503,711 6,044,086
Sub-total of cash outflows 6,012,529,867 142,104,604 4,693,055,159 91,178,609
Net cash flows from operating activities 1,231,616,521 -137,463,123 1,549,198,125 -88,141,547
2. Cash flows from investing activities
Cash received from disposal of investments - 133,000,000 16,869,160 16,869,160
Cash received from returns on investments 1,000,000 992,590,922 - 653,440,107
Net cash received from disposal of fixed assets, 1,207,810 - 12,616,261 -
intangible assets and other long-term assets
Cash received from disposal of subsidiaries and other 279,482,884 228,675,000 - -
companies
Cash received relating to other investing activities 95,243,322 - 5,931,485 523,320,787
Sub-total of cash inflows 376,934,016 1,354,265,922 35,416,906 1,193,630,054
Cash paid to acquire fixed assets, intangible assets and 2,461,687,679 367,250 1,073,151,622 1,505,092
other long-term assets
Cash paid to acquire investments 55,535,338 863,742,296 - 299,526,000
Net cash received from subsidiaries and other companies 5,000,000 - - -
Cash paid relating to other investing activities 15,000,000 374,846,268 - -
Sub-total of cash outflows 2,537,223,017 1,238,955,814 1,073,151,622 301,031,092
Net cash flows for investing activities -2,160,289,001 115,310,108 -1,037,734,716 892,598,962
3. Cash flows from financing activities
Cash received from capital contributions 165,966,547 - - -
Including: Cash received from capital contributions 165,966,547 - - -
by minority shareholders of subsidiaries
Cash received from borrowings 3,510,838,706 860,765,640 1,377,336,335 364,276,500
Cash received from issuing bonds - - - -
Cash received from other financing activities 402,956,394 - 3,068,624 -
Sub-total of cash inflows 4,079,761,647 860,765,640 1,380,404,959 364,276,500
Cash repayments of borrowings 1,977,417,711 211,983,420 1,359,930,441 716,485,200
Cash payments for interest expenses and distribution of 943,707,496 730,342,205 598,251,409 436,607,031
dividends or profits
Including: Cash payments for dividends or profit to 130,710,610 - 88,556,493 -
minority shareholders of subsidiaries
Cash payments relating to other financing activities 9,184,990 4,118,420 17,738,370 17,738,370
Sub-total of cash outflows 2,930,310,197 946,444,045 1,975,920,220 1,170,830,601
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CSG HOLDING CO., LTD. The Third Quarter Report 2011
Net cash flows from financing activities 1,149,451,450 -85,678,405 -595,515,261 -806,554,101
4. Effect of foreign exchange rate changes on cash and -8,323,704 -381,019 -1,294,026 -217,728
cash equivalents
5. Net increase in cash and cash equivalents 212,455,266 -108,212,439 -85,345,878 -2,314,414
Add: Cash and cash equivalents at beginning of year 660,213,739 373,901,165 635,618,163 370,558,509
6. Cash and cash equivalent at end of year 872,669,005 265,688,726 550,272,285 368,244,095
v Auditors’ Report
Auditors’ opinions: Un-audited
Board of Directors of
CSG Holding Co., Ltd.
25 October 2011
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