CSG HOLDING CO., LTD.
THE THIRD QUARTER REPORT 2012
Chairman of the Board:
ZENG NAN
October 2012
CSG HOLDING CO., LTD. THE THIRD QUARTER REPORT 2012
THE THIRD QUARTER REPORT 2012
I. Important Note
Board of Directors and the Supervisory Committee of CSG Holding Co., Ltd. (hereinafter referred to as the
Company) and its directors, supervisors and senior executives hereby confirm that there are no any fictitious
statements, misleading statements, or important omissions carried in this report, and shall take all responsibilities
jointly and severally, for the truthfulness, accuracy and completeness of the whole contents.
All the directors are present the meeting of the Board for deliberating the Third Quarter Report of the Company in
person.
The third quarter financial report of 2012 has not been audited.
Chairman of the Board & CEO of the Company Mr. Zeng Nan, CFO Mr. Luo Youming and principle of the
financial department Mr. Huang Yanbing hereby confirm the truthfulness and completeness of the Financial
Report in the Third Quarter Report of 2012.
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.
II. Company Profile
(I)Main accounting data and indices
Whether retrospective adjustment has been carried out on financial reports of previous periods or not
□Yes √ No □Non-applicable
Increase/decrease
30 September 2012 31 December 2011
(%)
Total assets(RMB) 14,789,459,548 15,281,391,077 -3.22%
Owners’ equity attributable to shareholders of the
6,943,464,422 6,911,117,984 0.47%
listed company(RMB)
Share capital(Share) 2,075,335,560 2,075,837,060 -0.02%
Net assets per share attributable to shareholder of
3.35 3.33 0.60%
listed company (RMB/ Share)
Increase/Decrease
The 3rd quarter of Increase/Decrease in From 1 January in comparison with
comparison with the to 30 September
2012 the same period of
same period of 2011 2012
2011
Total business revenue(RMB) 1,947,809,464 -5.80% 5,293,059,949 -18.65%
Net profit attributable to shareholders of the listed
156,677,476 -42.49% 402,770,661 -63.72%
company (RMB)
Net cash flow arising from operating
-- -- 1,382,917,631 12.28%
activities(RMB)
Net cash flow per share arising from operating
-- -- 0.67 13.56%
activities (RMB/Share)
Basic earnings per share (RMB/Share) 0.08 -38.46% 0.19 -64.15%
Diluted earnings per share (RMB/Share) 0.08 -38.46% 0.19 -64.15%
Decrease 1.84 Decrease 10.93
Weighted average ROE (%) 2.27% 5.83%
percentage points percentage points
Weighted average ROE after deducting Decrease 1.79 Decrease 12.11
2.09% 3.84%
non-recurring gains/losses (%) percentage points percentage points
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CSG HOLDING CO., LTD. THE THIRD QUARTER REPORT 2012
Non-recurring items deducted and amounts
√Applicable □ Non-applicable
Amount from the beginning of year to
Items Note
the end of the report period(RMB)
Gains and losses from disposal of non-current assets 4,589,287
Tax refund or exemption approved out of authorization, or without official
approval document
Governmental subsidy calculated into current gains and losses (excluding
the fixed-amount or fixed-proportion governmental subsidies closely
77,908,002
related to the business of the company according to the unified national
standard)
Fund occupation expenses received from non-financial enterprises that
reckon into current gains/losses
Income occurred when investment cost paid by enterprise for obtaining
subsidiaries, associates and joint ventures are lower than its share in fair
value of net realizable assets of invested units
Gains and losses from exchange of non-monetary assets
Gains and losses from entrusted investment or management assets
Various asset impairment reserve provided for force majeure, such as
natural disaster;
Gains/losses from debt reorganization
Reorganization expenses, such as expenditure for allocation of employees
and integration fee
Gains and losses from excess of transaction which are conducted on a
non-fair-valued basis over its fair value
Current net gains and losses of subsidiaries occurred from combination
under the same control commencing from period-begin to combination date
Gains and losses from contingent events which has no relation with normal
business of the Company
Gains and losses from change of fair values of held-for-transaction
financial assets and financial liabilities except for the effective hedge
business related to normal business of the Company, and investment 360,000
income from disposal of transactional financial assets and liabilities and
financial assets available for sale
Reversal of impairment reserve for account receivable with separate
impairment testing
gains/ losses from external entrustment loans
Gains and losses arising from change of fair value of investment properties
whose follow-up measurement are at fair value
Affect upon current gains/losses arising from the one-off adjustment in
subject to requirement of laws and rules in relation to taxation and
accounting
Income from entrusted custody operation
Other non-operating income and expenditure except the abovementioned 11,996,083
Other item that satisfied the definition of non-recurring gains and losses 62,252,488
Influenced amount of minority shareholders’ equity -5,137,579
Impact on income tax -14,128,210
Total 137,840,071 --
Statement of the Company on “Other gain/loss items satisfying the definitions of non-recurring gain/loss accounts” and the
non-recurring items defined as recurring items according to the nature and characteristics of the businesses.
Item Amount involved (RMB) Note
On 21 March 2012, Guangzhou CSG was
completed its equity transfer procedures, RMB
Net income from equity transfer 62,252,488
62,252,488 was recognized as investment income
for the Company.
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CSG HOLDING CO., LTD. THE THIRD QUARTER REPORT 2012
(II)Total of shareholders at the end of the report period and particulars about the shares held by the top
ten shareholders
Total of shareholders at the end of the report period 249,622
Particulars about shares held by the top ten unrestricted shareholders
Amount of Share type and amount
unrestricted shares
Name of shareholder
held at the end of Share type Amount
the report period
China Northern Industries Corporation 75,167,934 A-share 75,167,934
Xin Tong Chan Industrial Development (Shenzhen) Co., Ltd. 67,740,000 A-share 67,740,000
Shenzhen International Holdings (Shenzhen) Co., Ltd. 65,430,000 A-share 65,430,000
Bank of China— E-fund Shenzhen 100 Exchange-traded Securities
19,464,922 A-share 19,464,922
Investment Fund
ICBC—Rongtong Shenzhen 100 Index Securities Investment fund 13,910,937 A-share 13,910,937
BBH A/C Vanguard Emerging Markets Stock Index Fund 12,809,638 B-share 12,809,638
China Minsheng Bank—Yinhua Shenzhen 100 Index Grading Securities A-share
12,741,632 12,741,632
Investment Fund
PICC—Tradition-common insurance products 11,600,385 A-share 11,600,385
PICC—dividend-individual insurance 11,224,226 A-share 11,224,226
Bank of China—Franklin Templeton Sealand Potential Combinations A-share
10,958,204 10,958,204
Stock-type Investment Securities Fund
Among shareholders as listed above, the 2nd and the 3rd
shareholders are holding enterprises of Shenzhen
International Holdings Co., Ltd. Except for this, It is
Statement on associated relationship or consistent action among the above
unknown whether other shareholders belong to related
shareholders:
party or have associated relationship regulated by the
Management Regulation of Information Disclosure on
Change of Shareholding for Listed Companies.
III. Significant Events
(I)The situation and causes for the substantial changes of the main items in the accounting statements and
financial indices
√Applicable □ Non-applicable
Unit:RMB0’000
Increased/Decr
Note 30 September 2012 31 December 2011 Rate
eased amount
Notes receivable (1) 24,797 46,533 -21,736 -47%
Prepayment (2) 9,149 5,395 3,754 70%
Other account receivable (3) 8,107 5,156 2,951 57%
Other current asset (4) 16,446 91,363 -74,917 -82%
Construction in process (5) 298,464 171,344 127,120 74%
R&D expense (6) 1,345 3,069 -1,724 -56%
Notes payable (7) 29,143 10,612 18,531 175%
Employees’ wage payable (8) 9,154 13,939 -4,785 -34%
Interest payable (9) 10,822 3,842 6,980 182%
Other account payable (10) 17,848 88,665 -70,817 -80%
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CSG HOLDING CO., LTD. THE THIRD QUARTER REPORT 2012
Non-current liability due in
38,220 18,003 20,217 112%
1 year (11)
Deferred income tax
3,077 4,409 -1,332 -30%
liability (12)
From 1 January to From 1 January to 30 Increased/Decr
Note Rate
30 September 2012 September 2011 eased amount
Business income (13) 529,306 650,628 -121,322 -19%
Business cost (14) 409,822 432,241 -22,419 -5%
Financial expenses (15) 19,353 10,583 8,770 83%
Asset impairment loss (16) 239 615 -376 -61%
Investment gains (17) 6,261 570 5,691 998%
non-operational income (18) 9,604 6,587 3,017 46%
Income tax expenses (19) 9,499 25,865 -16,366 -63%
Notes:
(1) The decrease of notes receivable was mainly resulted from notes matured for cash and endorsement used for payment for
goods.
(2) The increase of the prepayment was mainly resulted from the increase of prepayment for payment for goods and
equipment payment.
(3) The increase of other receivables was mainly because of the increase of export tax rebate of the Company’s subsidiaries as
well as the increase of receivable balance according to the terms of the contract confirmation resulted from equity transfer
procedures of Guangzhou CSG Glass Co., Ltd completed in the report period.
(4) The decrease of other current assets was mainly resulted from the assets owned by Guangzhou CSG Glass Co., Ltd. which
were reclassified as held for sale last year decreased because the share transfer procedures have been completed before the
end of the report period.
(5) The increase of construction in progress was mainly because fixed assets with technical improvement of production line in
some subsidiaries transferred to constructions in progress.
(6) The decrease of development expenditure was mainly due to R&D expenses transferred to intangible assets or expense
expenditure.
(7) The increase of notes payable was mainly due to the increase of payment for the suppliers by bank acceptance bill in the
Company’s subsidiaries in the report period.
(8) The decrease of Employees’ wage payable was mainly because the Company paid annual management incentive fund and
employee year-end bonus of last year in the report period.
(9) The increase of interest payable was mainly because the interest for corporate bond had not been paid yet.
(10) The decrease of other payables was because equity transfer of Guangzhou CSG was completed in the report period, and
equity transfer amount received in prior-period has transfer-out from item of other account payable.
(11) The increase of non-current liability due in 1 year was mainly because part of the long-term loan will expire within 1 year.
(12) The decrease of deferred income tax liability was mainly because the write back of mainland subsidiaries withholding
income tax for dividend to overseas, which confirmed as the deferred income tax liabilities in the last period.
(13) The decrease of revenue was because the price of flat glass and solar energy products were lower than the same period of
last year.
(14) The decrease of cost of sales was because of decline of the unit cost of the main products of the Company.
(15) The increase of financial expenses was mainly because the interest expense after some subsidiaries’ production lines
transferred to fixed asset was recorded as current gains and losses, the loss in exchange caused by fluctuating of exchange
rate and loan interest increased.
(16) The decrease of asset impairment loss was mainly due to the decrease of the bad debt provision for the decreased
receivables alteration in the report period compared with the same period last year.
(17) The increase of investment income was because of the income from equity transfer of Guangzhou CSG, a subsidiary of the
Company.
(18) The increase of non-operational income was because of the increase of government supporting grant received by
subsidiaries in the report period compared with the last period.
(19) The decrease of income tax expense was because of the decrease of earnings before tax in the report period.
(II)The progress of material events and the analysis of the solutions
1. Non-standard report
□Applicable √ Non-applicable
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CSG HOLDING CO., LTD. THE THIRD QUARTER REPORT 2012
2. The Company exists that it provides funds to the controlling shareholder or its related parties, in
violation of the required procedure of guarantee for external parties.
□Applicable √ Non-applicable
3. Signature and implement of material contracts related to daily operation
□Applicable √ Non-applicable
4. Others
√Applicable □ Non-applicable
1.Repurchasing part of the domestically listed foreign shares (B-share) of the Company
On 6 August 2012, the First Extraordinary Shareholders’ General Meeting 2012 deliberated and approved the proposal of
“repurchasing part of the domestically listed foreign shares (B-share) of the Company”. The company will repurchase no more than
200 million “B” shares with less than HKD 6 per share by centralized price bidding in Shenzhen Stock Exchange after putting on file
in relevant regulatory bureau and gaining approval from relevant of authorized commerce and State Administration of Foreign
Exchange. The repurchase term will be effective within 12 months since the approved date of shareholders’ general meeting. More
details could be found in relevant notices published at China Securities Journal, Securities Times, Hong Kong Commercial Daily and
Juchao Website (www.cninfo.com.cn) on 20 July 2012 and 7 August 2012.
2. Short-term financing bills
On 15 April 2011, Annual Shareholders’ General Meeting 2010 of CSG Holding Co., Ltd. deliberated and approved the proposal of
issuing short-term financing bills, agreed the Company’s application for issuing short-term financing bills with total amount of RMB
0.7 billion. On 5 August 2011, the Registration Committee of Chinese Inter-bank Market Dealers Association held the Thirty-fourth
Registration Meeting of 2011, decided to accept the registration of short-term financing bills with total amount of RMB 0.7 billion
and expiry on 12 August 2013. The short-term financing bills were co-lead managed by China Construction Bank Co., Ltd. and
China Merchants Bank Co., Ltd., publicly issued to institutional investors of China’s inter-bank bond market by bookkeeping, book
building, centralizing and placing, and could be issued by stages within the validity period of registration. On 15 September 2011, the
Company successfully issued short-term financing bills of phaseⅠ2011 with total amount of RMB 0.7 billion and deadline of 365
days. And the short-term financing bills were cashed successfully on 14 September 2012. On 23 October 2012, the Company
successfully issued short-term financing bills of phaseⅠ2012 with total amount of RMB 0.7 billion and deadline of 365 days.
On 6 August 2012, the First Extraordinary Shareholders’ General Meeting 2012 of CSG Holding Co., Ltd deliberated and approved
the proposal of issuing short-term financing bills, approving the application of short-term financing bills within RMB 2.2 billion
limit.
More information can be found on www.chinabond.com.cn and www.chinamoney.com.cn.
3. It does not exist that non-operating fund of listed company is occupied by the largest shareholder and its affiliated enterprises.
(III)Commitments of shareholders with over 5% of shares made in the report period or carried over from
previous period
√Applicable □ Non-applicable
Item of Commitment Commitmen
Promisee Content of commitments Implementation
Commitments date t term
The Company has implemented share merger
the original reform in May 2006. Till June 2008, the share of
non-tradable the original non-tradable shareholders which
shareholder holding over 5% total shares of the Company had By the end of
Shenzhen all released. Therein, the original non-tradable the report
International shareholder Shenzhen International Holdings period, the
Commitments Holdings (SZ) (SZ) Limited (with former name of Yiwan original
for Share Limited and Xin Industrial Development (Shenzhen) Co., Ltd. ) non-tradable
Tong Chan 2009-7-9 N/A shareholders of
Merger and Xin Tong Chan Industrial Development
Reform Industrial (Shenzhen) Co., Ltd. both are wholly-funded the Company
Development subsidiaries to Shenzhen International Holdings have strictly
(Shenzhen) Co., Limited (hereinafter Shenzhen International for carried out their
Ltd. short) listed in Hong Kong united stock exchange promises.
main board. On 9 July 2009, Shenzhen
International held the Shareholders’ General
Meeting and authorized its board of directors to
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CSG HOLDING CO., LTD. THE THIRD QUARTER REPORT 2012
sell the CSG A share held by Shenzhen
International at price of no less than RMB 8.5.
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
in report of
acquisition or
equity change
Commitments
in assets
replacement
Commitments
made in
issuing
Other
commitments
for medium
and small
shareholders
Completed on
√ Yes □ No
time or not
Detail reasons
for
un-complemen N/A
t and further
plan
Whether made
a promise to
horizontal
competition
□ Yes √ No
and related
transactions
that resulted or
not
Solution term
N/A
promised
Solution way N/A
Complementat
N/A
ion
(IV) Prediction of business performance for 2012
Alert of loss or significant change in net profit from the beginning of year to the end of next report period or compared with the same
period of last year, and statement of causations.
√ Applicable □ Non applicable
Discription: significant delining at the same trend
Type of data filled for the prediction
□Actual figures √ Interval figures
The same
Year-begin to the end of the
period of last Increase or decrease (%)
next report period
year
Predicted amount of
□Increase
accumulative net profit 25,000 -- 35,000 117,823 70.29% -- 78.78%
√Decrease
(RMB'0,000)
Basic income per share □Increase
0.12 -- 0.17 0.57 70.18% -- 78.95%
(RMB/Share) √Decrease
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CSG HOLDING CO., LTD. THE THIRD QUARTER REPORT 2012
1. In the report period, influenced by government macro-control policies and production
over-capacity, the selling price of flat glass reduce considerably compare with the same period of
last year. The profit of flat glass in the Company will reduce considerably compared with the
same period of last year.
2. Influenced by the European debt crisis and government subsidy cut, the solar photovoltaic
Statement on performance industry keeps sluggish in the report period. The selling price of polysilicon, cells & modules and
herald solar energy glass decline considerably compared with the same period of last year. The profit of
solar energy industry of the Company will reduce considerably compared with the same period of
last year for the above reasons.
3. Based on the principle of prudence, the Company predicts that there will be impairment reserved
for some related assets. Because it has not been deliberated and approved by the Board of directors
yet, there is still some uncertainty for the prediction.
(V) Other issues to be disclosed
1. Securities investment
□Applicable √ Non-applicable
2. Derivatives investment
□Applicable √ Non-applicable
3. Position of the derivatives investment at the end of the report period
□Applicable √ Non-applicable
4. Reception of investigations, communications, or interviews in the report period
Main content involved and
Date Place Way Type Visitors
material provided
Introduction of the disclosed
In the Spot information about operation
2012-09-04 Institution China Investment Securities Co., Ltd.
Company investigation and production of the
Company.
Guotai Junan Securities Co., Ltd., Everbright
Introduction of the disclosed
Pramerica Fund Management Co.,Ltd., Ping An
In the Spot information about operation
2012-09-19 Institution Insurance (Group) Company Of China, Ltd.,
Company investigation and production of the
Essence Fund Management Co., Ltd., Shenzhen
Company.
Golden Investment Management Co., Ltd.
5. Corporate bond issuance
Whether the Company issued corporate bond or not?
√ Yes □ No
Approved by the 2nd Extraordinary Shareholders’ General Meeting 2009, the Company issued corporate bond on 20 October 2010
with the amount of RMB 2 billion in total. The bond had two products with 5-year and 7-year, in which product I of 5-year with
RMB 1 billion issuance scale and product II of 7-year with RMB 1 billion issuance scale. Meanwhile, attached with option of
up-regulate coupon rate of issuer and re-sale option of investors for the product II. On 10 November 2010, the corporate bond was
listed for trading in Shenzhen Stock Exchange with fixed annual coupon rate of 5.33% within five-years of duration. Short name for
5-year product was ‘10 CSG 01’ (code 112021) while 7-year product was ‘10 CSG 02’ (code 112022). Closing date for trading will
be 20 October 2015 and 20 October 2017 respectively (notice of the Company disclosed shall prevail). More details can be 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) on 26 October 2010.
According to the track rating from CCXR in 2012, the Company gained AA+ for subject credit rating, expectation rating was stable,
and bond credit rating of this period was AA+. On 20 October 2011 and 22 October 2012, interests in the first two periods of
interest-bearing for corporate bond were paid by the Company. The Company will continuously guarantee debt servicing ability by
solid development of its own business in the future.
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CSG HOLDING CO., LTD. THE THIRD QUARTER REPORT 2012
IV. Notes
(I)Financial statements
Consolidated or not
√Yes □ No □Non-applicable
All figures in the financial statements are in RMB except for otherwise stated.
1. Consolidated Balance Sheet
Prepared by CSG Holding Co., Ltd.
Unit: RMB
Items Ending balance Beginning balance
Current asset:
Monetary capital 573,369,661 656,239,151
Settlement provision
Outgoing call loan
Transactional financial assets
Notes receivable 247,965,664 465,326,418
Account receivable 380,004,963 315,204,776
Prepayment 91,492,510 53,946,544
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance contracts receivable
Interest receivable
Dividend receivable
Other account receivable 81,067,215 51,555,671
Repurchasing of financial assets
Inventories 499,315,484 479,716,050
Non-current asset due in 1 year
Other current asset 164,456,471 913,630,129
Total of current asset 2,037,671,968 2,935,618,739
Non-current assets
Disburse of consigned loans
Available-for-sale financial asset 110,667,987 117,892,827
Expired investment in possess
Long-term receivable
Long-term share equity investment
Investment real estates
Fixed assets 8,529,876,184 9,431,688,834
Construction in process 2,984,635,957 1,713,437,065
Engineering material
Fixed asset disposal
Productive living assets
Gas & petrol
Intangible assets 953,711,526 913,473,642
R&D expense 13,445,507 30,688,334
Goodwill 18,404,380 18,404,380
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CSG HOLDING CO., LTD. THE THIRD QUARTER REPORT 2012
Long-term amortizable expenses 2,334,446 1,319,695
Deffered income tax asset 101,220,881 81,376,849
Other non-current asset 37,490,712 37,490,712
Total of non-current assets 12,751,787,580 12,345,772,338
Total of assets 14,789,459,548 15,281,391,077
Current liabilities
Short-term loans 1,736,002,477 1,546,224,149
Loan from Central Bank
Deposit received and hold for others
Call loan received
Trade off financial liabilities
Notes payable 291,430,872 106,118,119
Account payable 1,180,826,151 1,345,809,426
Prepayment received 163,239,133 135,537,639
Selling of repurchased financial assets
Fees and commissions receivable
Employees’ wage payable 91,538,916 139,392,699
Tax payable 145,123,463 139,317,213
Interest payable 108,216,693 38,423,616
Dividend payable 687,627 687,627
Other account payable 178,479,746 886,647,082
Reinsurance fee payable
Insurance contract provision
Entrusted trading of securities
Entrusted selling of securities
Non-current liability due in 1 year 382,202,919 180,033,101
Other current liability 526,872 2,926,872
Total of current liability 4,278,274,869 4,521,117,543
Non-current liabilities
Long-term borrowings 783,464,576 1,088,240,944
Bond payable 1,985,544,015 1,982,441,160
Long-term payable
Special payable
Anticipated liabilities
Deffered income tax liability 30,765,993 44,090,844
Other non-recurring liabilities 332,361,959 339,566,047
Total of non-current liabilities 3,132,136,543 3,454,338,995
Total of liability 7,410,411,412 7,975,456,538
Owners’ equity (or shareholders’ equity)
Capital paid in (or share capital) 2,075,335,560 2,075,837,060
Capital reserves 1,381,441,692 1,380,994,405
Less: Shares in stock
Special reserves 13,201,526 10,591,844
Surplus reserves 599,935,097 599,935,097
Common risk provision
Retained profit 2,872,083,502 2,842,873,242
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CSG HOLDING CO., LTD. THE THIRD QUARTER REPORT 2012
Different of foreign currency translation 1,467,045 886,336
Total of owner’s equity belong to the parent company 6,943,464,422 6,911,117,984
Minor shareholders’ equity 435,583,714 394,816,555
Total of owners’ equity (or shareholders’ equity) 7,379,048,136 7,305,934,539
Total of liability and shareholders’ equity (or owners’ equity) 14,789,459,548 15,281,391,077
Legal Representative：Zeng Nan CFO：Luo Youming Manager of the financial department：Huang Yanbing
2. Balance Sheet of the Parent Company
Prepared by CSG Holding Co., Ltd.
Unit: RMB
Items Ending balance Beginning balance
Current asset:
Monetary capital 160,260,794 229,898,568
Transactional financial assets
Notes receivable
Account receivable
Prepayment
Interest receivable
Dividend receivable 177,241,113
Other account receivable 1,453,809,889 1,464,351,799
Inventories
Non-current asset due in 1 year
Other current asset
Total of current asset 1,791,311,796 1,694,250,367
Non-current assets
Available-for-sale financial asset 84,882,395 90,423,881
Expired investment in possess
Long-term receivable 2,324,797,088 2,165,031,152
Long-term share equity investment 4,768,142,121 4,568,233,404
Investment real estates
Fixed assets 16,329,573 14,583,342
Construction in process 5,403,046
Engineering material
Fixed asset disposal
Productive living assets
Gas & petrol
Intangible assets 3,204,384 3,537,234
R&D expense
Goodwill
Long-term amortizable expenses
Deffered income tax asset
Other non-current asset
Total of non-current assets 7,202,758,607 6,841,809,013
Total of assets 8,994,070,403 8,536,059,380
Current liabilities
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CSG HOLDING CO., LTD. THE THIRD QUARTER REPORT 2012
Short-term loans 700,000,000 761,613,200
Trade off financial liabilities
Notes payable
Account payable 29,790
Prepayment received
Employees’ wage payable 3,956,620 40,403,745
Tax payable 85,932 609,880
Interest payable 12,946,069 2,984,980
Dividend payable 687,627 687,627
Other account payable 940,051,414 947,884,945
Non-current liability due in 1 year
Other current liability
Total of current liability 1,657,757,452 1,754,184,377
Non-current liabilities
Long-term borrowings 130,000,000
Bond payable 1,985,544,015 1,982,441,160
Long-term payable
Special payable
Anticipated liabilities
Deffered income tax liability 16,810,349 18,195,720
Other non-recurring liabilities 5,000,000
Total of non-current liabilities 2,137,354,364 2,000,636,880
Total of liability 3,795,111,816 3,754,821,257
Owners’ equity (or shareholders’ equity)
Capital paid in (or share capital) 2,075,335,560 2,075,837,060
Capital reserves 1,418,995,573 1,417,697,982
Less: Shares in stock
Special reserves
Surplus reserves 599,935,097 599,935,097
Common risk provision
Retained profit 1,104,692,357 687,767,984
Different of foreign currency translation
Total of owners’ equity (or shareholders’ equity) 5,198,958,587 4,781,238,123
Total of liability and shareholders’ equity (or owners’ equity) 8,994,070,403 8,536,059,380
Legal Representative：Zeng Nan CFO：Luo Youming Manager of the financial department：Huang Yanbing
3. Consolidated Income Statement in the report period
Prepared by CSG Holding Co., Ltd.
Unit: RMB
Items Balance of this period Balance of last period
I. Total revenue 1,947,809,464 2,067,750,476
Incl. Business income 1,947,809,464 2,067,750,476
Interest income
Insurance fee earned
Fee and commission received
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CSG HOLDING CO., LTD. THE THIRD QUARTER REPORT 2012
II. Total business cost 1,739,427,606 1,707,066,409
Incl. Business cost 1,460,092,713 1,446,089,410
Interest expense
Fee and commission paid
Insurance discharge payment
Net claim amount paid
Net insurance policy reserves provided
Insurance policy dividend paid
Reinsurance expenses
Business tax and surcharge 14,067,914 15,537,197
Sales expense 68,298,247 57,361,014
Administrative expense 137,745,946 146,253,013
Financial expenses 60,177,826 40,623,406
Asset impairment loss -955,040 1,202,369
Plus: gains from change of fair value (“-“for loss)
Investment gains (“-“ for loss) -801,520
Incl. Investment gains from affiliates
Exchange gains (“-“ for loss)
III. Operational profit (“-“ for loss) 208,381,858 359,882,547
Plus: non-operational income 16,215,764 23,967,362
Less: non-operational expenditure 685,629 1,444,475
Incl. Loss from disposal of non-current assets 526,917 1,209,476
IV. Gross profit (“-“ for loss) 223,911,993 382,405,434
Less: Income tax expenses 39,063,624 69,224,449
V. Net profit (“-“ for net loss) 184,848,369 313,180,985
Including: Net profit realized by the entity taken over before the
takeover
Net profit attributable to the owners of parent company 156,677,476 272,443,398
Minor shareholders’ equity 28,170,893 40,737,587
VI. Earnings per share: -- --
(I) Basic earnings per share 0.08 0.13
(II) Diluted earnings per share 0.08 0.13
VII. Other misc. incomes -9,171,897 -1,508,872
VIII. Total of misc. incomes 175,676,472 311,672,113
Total of misc. incomes attributable to the owners of the parent
147,505,579 270,934,526
company
Total misc gains attributable to the minor shareholders 28,170,893 40,737,587
Net profit contributed by entities merged under common control in the report period was RMB 0.
Legal Representative：Zeng Nan CFO：Luo Youming Manager of the financial department：Huang Yanbing
4. Income Statement of the Parent Company in the report period
Prepared by CSG Holding Co., Ltd.
Unit: RMB
Items Balance of this period Balance of last period
I. Turnover 0 1,065,932
Less: Operation cost 61,291
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CSG HOLDING CO., LTD. THE THIRD QUARTER REPORT 2012
Business tax and surcharge
Sales expense
Administrative expense 6,492,555 16,376,512
Financial expenses 1,902,340 2,716,657
Asset impairment loss -20,701
Plus: gains from change of fair value (“-“ for loss)
Investment gains (“-“ for loss) -801,520
Incl. Investment gains from affiliates
II. Operational profit (“-“ for loss) -8,374,194 -18,890,048
Plus: Non business income 5,000,000 4,294,527
Less: Non-business expenses 11,077 1,762
Incl. Loss from disposal of non-current assets 11,077 1,762
III. Total profit (“-“ for loss) -3,385,271 -14,597,283
Less: Income tax expenses
IV.Net profit (“-“ for net loss) -3,385,271 -14,597,283
V. Earnings per share -- --
(I) Basic earnings per share
(II) Diluted earnings per share
VI. Other misc gains -6,982,760
VII. Total of integrated income -10,368,031 -14,597,283
Legal Representative：Zeng Nan CFO：Luo Youming Manager of the financial department：Huang Yanbing
5. Consolidated Income Statement from the beginning of the year to the end of the report period
Prepared by CSG Holding Co., Ltd.
Unit: RMB
Items Balance of this period Balance of last period
I. Total revenue 5,293,059,949 6,506,284,578
Incl. Business income 5,293,059,949 6,506,284,578
Interest income
Insurance fee earned
Fee and commission received
II. Total business cost 4,876,317,005 5,085,105,349
Incl. Business cost 4,098,220,248 4,322,413,812
Interest expense
Fee and commission paid
Insurance discharge payment
Net claim amount paid
Net insurance policy reserves provided
Insurance policy dividend paid
Reinsurance expenses
Business tax and surcharge 31,093,001 42,881,002
Sales expense 173,833,081 196,815,255
Administrative expense 377,254,068 411,012,116
Financial expenses 193,530,038 105,833,510
Asset impairment loss 2,386,569 6,149,654
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CSG HOLDING CO., LTD. THE THIRD QUARTER REPORT 2012
Plus: gains from change of fair value (“-“for loss)
Investment gains (“-“ for loss) 62,612,488 5,695,272
Incl. Investment gains from affiliates
Exchange gains (“-“ for loss)
III. Operational profit (“-“ for loss) 479,355,432 1,426,874,501
Plus: non-operational income 96,036,837 65,872,412
Less: non-operational expenditure 1,543,465 2,126,759
Incl. Loss from disposal of non-current assets 1,007,710 1,570,423
IV. Gross profit (“-“ for loss) 573,848,804 1,490,620,154
Less: Income tax expenses 94,992,390 258,651,736
V. Net profit (“-“ for net loss) 478,856,414 1,231,968,418
Including: Net profit realized by the entity taken over before the
takeover
Net profit attributable to the owners of parent company 402,770,661 1,110,086,740
Minor shareholders’ equity 76,085,753 121,881,678
VI. Earnings per share: -- --
(I) Basic earnings per share 0.19 0.53
(II) Diluted earnings per share 0.19 0.53
VII. Other misc. incomes -4,936,175 68,578
VIII. Total of misc. incomes 473,920,239 1,232,036,996
Total of misc. incomes attributable to the owners of the parent
397,789,655 1,110,155,318
company
Total misc gains attributable to the minor shareholders 76,130,584 121,881,678
Net profit contributed by entities merged under common control from the beginning of the year to the end of the report period was
RMB 0.
Legal Representative：Zeng Nan CFO：Luo Youming Manager of the financial department：Huang Yanbing
6. Income Statement of the Parent Company from the beginning of the year to the end of the report period
Prepared by CSG Holding Co., Ltd.
Unit: RMB
Items Balance of this period Balance of last period
I. Turnover 1,257,853 2,479,239
Less: Operation cost 70,566 432,531
Business tax and surcharge
Sales expense
Administrative expense 14,791,978 50,625,419
Financial expenses 11,129,772 4,420,474
Asset impairment loss 300,078
Plus: gains from change of fair value (“-“ for loss)
Investment gains (“-“ for loss) 805,030,048 1,052,539,196
Incl. Investment gains from affiliates
II. Operational profit (“-“ for loss) 779,995,507 999,540,011
Plus: Non business income 10,501,000 4,494,527
Less: Non-business expenses 11,735 5,384
Incl. Loss from disposal of non-current assets 11,735 5,384
III. Total profit (“-“ for loss) 790,484,772 1,004,029,154
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CSG HOLDING CO., LTD. THE THIRD QUARTER REPORT 2012
Less: Income tax expenses -212,380
IV.Net profit (“-“ for net loss) 790,484,772 1,004,241,534
V. Earnings per share -- --
(I) Basic earnings per share
(II) Diluted earnings per share
VI. Other misc gains -4,156,114
VII. Total of integrated income 786,328,658 1,004,241,534
Legal Representative：Zeng Nan CFO：Luo Youming Manager of the financial department：Huang Yanbing
7. Consolidated Cash Flow Statement from the beginning of the year to the end of the report period
Prepared by CSG Holding Co., Ltd.
Unit: RMB
Items Balance of this period Balance of last period
I. Net cash flow from business operation
Cash received from sales of products and providing of services 6,214,902,734 6,982,130,973
Net increase of customer deposits and capital kept for brother
company
Net increase of loans from central bank
Net increase of inter-bank loans from other financial bodies
Cash received against original insurance contract
Net cash received from reinsurance business
Net increase of client deposit and investment
Net increase of trade financial asset disposal
Cash received as interest, processing fee, and commission
Net increase of inter-bank fund received
Net increase of repurchasing business
Tax returned 112,452,601 170,244,219
Other cash received from business operation 90,181,088 91,771,196
Sub-total of cash inflow from business activities 6,417,536,423 7,244,146,388
Cash paid for purchasing of merchandise and services 3,662,281,292 4,276,591,772
Net increase of client trade and advance
Net increase of savings in central bank and brother company
Cash paid for original contract claim
Cash paid for interest, processing fee and commission
Cash paid for policy dividend
Cash paid to staffs or paid for staffs 592,345,154 671,840,534
Taxes paid 483,528,672 792,085,095
Other cash paid for business activities 296,463,674 272,012,466
Sub-total of cash outflow from business activities 5,034,618,792 6,012,529,867
Cash flow generated by business operation, net 1,382,917,631 1,231,616,521
II. Cash flow generated by investing
Cash received from investment retrieving
Cash received as investment profit 339,962 1,000,000
Net cash retrieved from disposal of fixed assets, intangible assets,
8,098,484 1,207,810
and other long-term assets
Net cash received from disposal of subsidiaries or other operational 78,552,498 279,482,884
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CSG HOLDING CO., LTD. THE THIRD QUARTER REPORT 2012
units
Other investment-related cash received 43,531,540 95,243,322
Sub-total of cash inflow due to investment activities 130,522,484 376,934,016
Cash paid for construction of fixed assets, intangible assets and
1,061,357,422 2,461,687,679
other long-term assets
Cash paid as investment 27,068,998 55,535,338
Net increase of loan against pledge
Net cash received from subsidiaries and other operational units 5,000,000
Other cash paid for investment activities 4,742,970 15,000,000
Sub-total of cash outflow due to investment activities 1,093,169,390 2,537,223,017
Net cash flow generated by investment -962,646,906 -2,160,289,001
III. Cash flow generated by financing
Cash received as investment 52,855,285 165,966,547
Incl. Cash received as investment from minor shareholders 52,855,285 165,966,547
Cash received as loans 2,383,345,342 3,510,838,706
Cash received from bond placing
Other financing-related cash received 36,000,000 402,956,394
Subtotal of cash inflow from financing activities 2,472,200,627 4,079,761,647
Cash to repay debts 2,297,104,281 1,977,417,711
Cash paid as dividend, profit, or interests 639,944,823 943,707,496
Incl. Dividend and profit paid by subsidiaries to minor shareholders 123,764,085 130,710,610
Other cash paid for financing activities 44,774,967 9,184,990
Subtotal of cash outflow due to financing activities 2,981,824,071 2,930,310,197
Net cash flow generated by financing -509,623,444 1,149,451,450
IV. Influence of exchange rate alternation on cash and cash
601,947 -8,323,704
equivalents
V. Net increase of cash and cash equivalents -88,750,772 212,455,266
Plus: Balance of cash and cash equivalents at the beginning of term 634,416,574 660,213,739
VI. Balance of cash and cash equivalents at the end of term 545,665,802 872,669,005
Legal Representative：Zeng Nan CFO：Luo Youming Manager of the financial department：Huang Yanbing
8. Cash Flow Statement of the Parent Company from the beginning of the year to the end of the report
period
Prepared by CSG Holding Co., Ltd.
Unit: RMB
Items Balance of this period Balance of last period
I. Net cash flow from business operation
Cash received from sales of products and providing of services
Tax returned
Other cash received from business operation 2,914,770 4,641,481
Sub-total of cash inflow from business activities 2,914,770 4,641,481
Cash paid for purchasing of merchandise and services
Cash paid to staffs or paid for staffs 41,818,591 136,114,996
Taxes paid 232,259 464,786
Other cash paid for business activities 9,507,157 5,524,822
Sub-total of cash outflow from business activities 51,558,007 142,104,604
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CSG HOLDING CO., LTD. THE THIRD QUARTER REPORT 2012
Cash flow generated by business operation, net -48,643,237 -137,463,123
II. Cash flow generated by investing
Cash received from investment retrieving 133,000,000
Cash received as investment profit 526,634,274 992,590,922
Net cash retrieved from disposal of fixed assets, intangible assets,
450
and other long-term assets
Net cash received from disposal of subsidiaries or other operational
62,400,000 228,675,000
units
Other investment-related cash received 15,500,000
Sub-total of cash inflow due to investment activities 604,534,724 1,354,265,922
Cash paid for construction of fixed assets, intangible assets and
8,310,383 367,250
other long-term assets
Cash paid as investment 203,105,620 863,742,296
Net cash received from subsidiaries and other operational units
Other cash paid for investment activities 103,717,913 374,846,268
Sub-total of cash outflow due to investment activities 315,133,916 1,238,955,814
Net cash flow generated by investment 289,400,808 115,310,108
III. Cash flow generated by financing
Cash received as investment
Cash received as loans 830,000,000 860,765,640
Cash received as bond issuance
Other financing-related cash received
Subtotal of cash inflow from financing activities 830,000,000 860,765,640
Cash to repay debts 761,500,720 211,983,420
Cash paid as dividend, profit, or interests 374,762,405 730,342,205
Other cash paid for financing activities 2,221,645 4,118,420
Subtotal of cash outflow due to financing activities 1,138,484,770 946,444,045
Net cash flow generated by financing -308,484,770 -85,678,405
IV. Influence of exchange rate alternation on cash and cash
-1,910,576 -381,019
equivalents
V. Net increase of cash and cash equivalents -69,637,775 -108,212,439
Plus: Balance of cash and cash equivalents at the beginning of term 229,898,569 373,901,165
VI. Balance of cash and cash equivalents at the end of term 160,260,794 265,688,726
Legal Representative：Zeng Nan CFO：Luo Youming Manager of the financial department：Huang Yanbing
(II)Auditor’s Report
Auditor’s opinion Unaudited
Board of Directors of
CSG Holding Co., Ltd.
30 October 2012
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