CSG HOLDING CO., LTD.
SEMI-ANNUAL REPORT 2014
Chairman of the Board:
ZENG NAN
August 2014
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
Section I Important Notice, Contents and Paraphrase
Board of Directors and the Supervisory Committee of CSG Holding Co., Ltd. (hereinafter referred
to as the Company) and its directors, supervisors and senior executives hereby confirm that there
are no any fictitious statements, misleading statements, or important omissions carried in this report,
and shall take all responsibilities, individual and/or joint, for the reality, accuracy and completion of
the whole contents.
Except for the follow directors, others are present the meeting of the Board for deliberating the
semi-annual report of the Company in person.
Name of director absent Position Reason for absence Name of authorized director
Yan Ganggang Director On business Chen Chao
The Company has no plans of cash dividend distribution, bonus shares being sent and converting
capital reserve into share capital.
Mr. Zeng Nan, Chairman of the Board, CFO Mr. Luo Youming and principle of the financial
department Mr. Zhang Guoming confirm that the Financial Report enclosed in this Semi-annual
Report is true and complete.
Regarding to the forward-looking statements with future planning involved in the Report, they do
not constitute a substantial commitment for investors. Investors are advised to exercise caution of
investment risks.
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 HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
Contents
Section I Important Notice, Contents and Paraphrase .............................................. 1
Section II Company profile ..................................................................................... 4
Section III Accounting data and summary of financial indexes ............................... 6
Section IV Report of the Board of Directors............................................................ 8
Section V Important Events ................................................................................... 19
Section VI. Changes in Shares and Particulars about Shareholders ....................... 25
Section VII. Particulars about Directors, Supervisors and Senior Executives ........ 29
Section VIII . Financial Report ................................................................................. 30
Section IX. Documents available for Reference ..................................................... 110
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CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
Paraphrase
Items Refers to Contents
Company, the Company, SG or the Group Refers to CSG Holding Co., Ltd.
Ultra-thin electronic glass Refers to The electronic glass with thickness between 0.1~1.1mm
Second-generation energy-saving glass Refers to Double silver coated glass
Third-generation energy-saving glass Refers to Triple Silver coated glass
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CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
Section II Company profile
I. Company information
Short form for share Southern Glass A、Southern Glass B Code for share 000012、200012
Listing stock exchange Shenzhen Stock Exchange
Legal Chinese name of the Company 中国南玻集团股份有限公司
Abbr. of legal Chinese name of the Company 南玻集团
Legal English name of the Company CSG Holding Co., Ltd.
Abbr. of legal English name of the Company CSG
Legal Representative Zeng Nan
II. Person/Way to contact
Secretary of the Board Rep. of security affairs
Name Zhou Hong Li Tao
CSG Building, No.1 of the 6th Industrial Road, CSG Building, No.1 of the 6th Industrial Road,
Contacts add.
Shekou, Shenzhen, P. R.C. Shekou, Shenzhen, P. R.C.
Tel. (86)755-26860666 (86)755-26860666
Fax. (86)755-26692755 (86)755-26692755
E-mail securities@csgholding.com securities@csgholding.com
III. Other information
1. Way of contact
Whether registrations address, offices address and post code as well as website and email of the Company changed in reporting
period or not
□ Applicable √Not applicable
Registrations address, offices address and post code as well as website and email of the Company have no change in reporting period,
found more details in Annual Report 2013.
2. Information disclosure and preparation place
Whether information disclosure and preparation place changed in reporting period or not
□ Applicable √ Not applicable
The newspaper appointed for information disclosure, website for semi-annual report publish appointed by CSRC and preparation
place for semi-annual report have no change in reporting period, found more details in Annual Report 2013.
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CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
3. Registration changes of the Company
Whether registration has changed in reporting period or not
□ Applicable √ Not applicable
Date/place for registration of the Company, registration number for enterprise legal license, number of taxation registration and
organization code have no change in reporting period, found more details in Annual Report 2013.
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CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
Section III Accounting data and summary of financial indexes
I. Main accounting data and financial indexes
Whether it has retroactive adjustment or re-statement on previous accounting data for accounting policy changed and accounting
error correction or not
□Yes √ No
The report period The same period Increase/decrease in this
(Jan. to Jun.2014) of last year report period year-on-year (%)
Operating income (RMB) 3,262,681,672 3,536,965,783 -7.75%
Net profit attributable to shareholders of the listed
589,210,439 353,719,746 66.58%
company(RMB)
Net profit attributable to shareholders of the listed company
242,934,925 323,142,979 -24.82%
after deducting non-recurring gains and losses(RMB)
Net cash flow arising from operating activities(RMB) 580,928,207 707,258,712 -17.86%
Basic earnings per share (RMB/Share) 0.28 0.17 64.71%
Diluted earnings per share (RMB/Share) 0.28 0.17 64.71%
Weighted average ROE (%) 7.38% 5.10% 2.28%
Increase/decrease in this
End of this period End of last year period-end over same period of
last year-end (%)
Total assets (RMB) 14,796,960,553 15,078,866,777 -1.87%
Net assets attributable to shareholder of listed company
8,019,143,515 8,047,894,139 -0.36%
(RMB)
II. Items and amounts of extraordinary profit (gains)/loss
√Applicable □ Not applicable
Unit: RMB
Item Amount Note
Gains/losses from the disposal of non-current asset (including the write-off that
-826,437
accrued for impairment of assets)
Governmental subsidy reckoned into current gains/losses (not including the subsidy
enjoyed in quota or ration according to national standards, which are closely 44,447,997
relevant to enterprise’s business)
Gains on disposal of available-for-sale financial assets, gains and losses from
change of fair values of held-for-transaction financial assets and financial liabilities 108,000
except for the effective hedge business related to normal business of the Company,
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CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
and investment income from disposal of transactional financial assets and liabilities
and financial assets available for sale
Other non-operating income and expenditure except for the aforementioned items 12,061,958
Other item that satisfied the definition of non-recurring gains and losses 308,895,397
Less:Impact on income tax 12,081,899
Impact on minority shareholders’ equity (post-tax) 6,329,502
Total 346,275,514 --
Explain reasons for the extraordinary profit (gain)/loss defined by Q&A Announcement No.1 on Information Disclosure for
Companies Offering Their Securities to the Public --- Extraordinary Profit/loss, and the items defined as recurring profit (gain)/loss
according to the lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies
Offering Their Securities to the Public --- Extraordinary Profit/loss.
√Applicable □ Not applicable
Amount involved
Item Reasons
(RMB)
Other item that satisfied the It was mainly due to the Company sold 100% equity of Shenzhen CSG
definition of non-recurring gains 308,895,397 Float Glass Co., Ltd. and the added value amortization of remaining
and losses equity of Shenzhen CSG Display Technology Co., Ltd.
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CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
Section IV Report of the Board of Directors
I. Introduction
In the first half year of 2014, the global economies still moved forward slowly. The economic recovery was still rough due to lots of
uncertain factors, though the economy of advanced economies headed by America showed a sign of slow recovery. Being influenced
by many factors, such as real estate industry adjustment, structural transformation of economy, insufficient demand as well as over
capacity, relevant industries in China moved downward obviously, and the market environment for entity economies became
extremely severe. Confronting the ups and downs of economic environment, the Company made full use of its own advantages,
responded actively to the adverse impact from market environment. Meanwhile, the Company continued to optimize mechanism of
R&D innovation, enhance construction of R&D system and ability, increase input for R&D, further deepen differentiation strategies
with technological innovation and management innovation, and consolidate the foundation of fine management. In the first half year
of 2014, CSG implemented operating income of RMB 3,263 million and net profit of RMB 589 million (already deducted minority
shareholders profit and loss), a year-on-year growth of 66.58%. After deducting non-recurring gains/losses, CSG gained net profit of
RMB 243 million, among which RMB 64.96 million decreased due to shares of the fine glass held by CSG reduced and the profit of
fine glass industry declined as well.
Affected by adjustment of real estate and over capacity in the first half year of 2014, float glass industry suffered a greater impact.
As the price of float glass keeping downside and the cost of soda ash and gas retaining upside, the pressure on float industry became
more and more intensified and the whole industry was in the state of poor performance. To cope with unfavorable market
environment, flat glass division of the Company continued to reinforce cost control, energy-saving and consumption-reducing, and
greatly promote the manufacture and sales of differentiated goods and high-grade products. In the first half year, flat glass division
achieved revenue of RMB 1,847 million with a year-on-year growth of 3.1%, and profit of RMB 150 million with a slight decline
year-on-year.
In the first half year of 2014, there was a slowdown in market demand of architectural glass due to adjustment of real estate market,
meanwhile, as homogeneous competition intensified, sales and profit of conventional products were affected. Architectural glass
division of the Company maintained stable through strengthening management and proactively promoting the sales of differentiate
goods, such as double-silver and triple-silver products. In the first half year, architectural glass division gained revenue of RMB
1,420 million with a year-on-year growth of 15.64% and net profit of RMB 237 million with a year-on-year growth of 25.95%.
In the first half year of 2014, PV market was still in its slump under double pressure of over capacity and trade protection from
Europe & America. In order to cope with severe market surrounding, the Company conducted a comprehensive transformation of
polysilicon production line in order to greatly lower the production cost and improve the competitiveness of products. Polysilicon
production line has entered the commercial operation so far, and achieved earnings already. In the first half year, PV industry realized
revenue of RMB 405 million with deficit of RMB 2.92 million, and reduced losses of RMB 6.50 million compared with the same
period of last year.
II. Main business analysis
Year-on-year changes of main financial data
Unit: RMB
The current The same term Increase /decrease Reasons of change
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CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
term of last year year-on-year（%）
Mainly because Shenzhen CSG Display was excluded
Business income 3,262,681,672 3,536,965,783 -7.75% in the consolidation scope of the Group due to part of
the equity was sold at the end of last year
Mainly because Shenzhen CSG Display was excluded
Business cost 2,438,593,004 2,514,678,053 -3.03% in the consolidation scope of the Group due to part of
the equity was sold at the end of last year
Mainly because Shenzhen CSG Display was excluded
in the consolidation scope of the Group due to part of
the equity was sold at the end of last year, more water
Sales expense 114,315,080 127,942,744 -10.65%
transport with lower rates adopted by Dongguan Solar
Energy and travelling expenses from architectural
business division decreased
Mainly because expenses of R&D as well as the
performance reward fund increased y-o-y and the
Administrative expense 280,194,020 264,014,052 6.13% amount of depreciation increased resulted from
accounting estimation changes for fixed assets in the
fourth quarter of last year.
Mainly because Shenzhen CSG Display was excluded
in the consolidation scope of the Group due to part of
Financial expense 109,025,628 119,638,263 -8.87% the equity was sold at the end of last year and interest
expenditure declined due to the decreasing borrowing
balance.
Mainly because Shenzhen CSG Display was excluded
in the consolidation scope of the Group due to part of
Income tax expense 60,997,406 113,728,215 -46.37% the equity was sold at the end of last year. In addition,
part of the subsidiaries obtained high-tech enterprise
certification with preferential tax rate this year.
Increase of R&D expenditure was mainly due to more
R&D expenditure 94,805,902 78,002,898 21.54%
investment in R&D in this year.
Mainly because Shenzhen CSG Display was excluded
Net cash flow from
580,928,207 707,258,712 -17.86% in the consolidation scope of the Group due to part of
operating activities
the equity was sold at the end of last year.
Net cash flows from Mainly because payment for equity transfer of
-487,610,199 -903,620,816 --
investing activities Shenzhen Float was received in the report period.
Net cash flows from Mainly because the dividends paid increased
-83,633,764 124,518,002 --
financing activities year-on-year.
Net increase of cash and Mainly because the net cash out-flow arising from
10,084,575 -74,605,106 --
cash equivalents investment activities decreased
Major changes on profit composition or profit resources in the report period
√Applicable □ Not applicable
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CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
Mainly because the transfer procedure of 100% equity of Shenzhen CSG Float Glass Co., Ltd. had completed, and earnings of RMB
311.25 million was included in the report period.
Future development and planning extended to the report period which was published in disclosure documents such as prospectus,
placement instructions and assets reorganization report
□ Applicable √ Not applicable
There was no future development or planning extended to the report period which was published in disclosure documents such as
prospectus, placement instructions and assets reorganization report.
Review on the previous business plan and its progress during the report period
During the report period, the Company launched the business plan smoothly:
① In the first half year, both sales and profit of architectural glass business achieved a year-on-year growth, and PV business also
made progress in reducing deficit. In aspect of flat glass business, ultra-thin glass and solar glass earned a certain growth. However,
influenced by over capacity and insufficient demand in float industry, profit from flat glass business declined year-on-year. In aspect
of construction, Chengdu architectural glass expansion project advanced as planned, Dongguan online coating project officially
started, and Qingyuan high-performance ultra-thin glass project started full swing. At the same time, Yichang ultra-thin glass project
was completed and ignited in February 2014 and entered into trial production, and Wujiang solar glass project had entered into the
stage of trial production. Technical transformation of polysilicon had been completed and entered into commercial operation.
②The Company constantly took the route of differential operation and industry upgrading relying on R&D and technology
innovation, and continued to strengthen R&D system and construction of R&D ability. Totally 40 patent applications were submitted
by the Company in the first half year, and 21 new patent applications were granted. As a breakthrough of traditional industry, product
quality and Yield of ultra-thin glass have reached the domestic advanced level. Meanwhile, solar glass successfully trial-produced
glass sheet of 2mm, and it will enhance anti-risk capability of the Company. The Company continued to promote the sales of wide
flat coated glass, second-generation and third- generation energy-saving glass. The sales of second-generation energy-saving glass
were over 60% in the Company’s coated insulating glass. In the field of PV, production costs of polysilicon dropped significantly
after technical transformation and upgrading, and therefore comprehensive anti-risk ability of PV industry improved.
③ In the first half year, the Company fully tapped the potentials of energy saving in the production process while effectively
improved capacity utilization, and further strengthened integrated management of energy. PV power generation and waste heat power
generation amounted to approximately 97 million degrees, reducing cost of electricity of nearly RMB 55 million.
④The Company insisted on steady financial policy and improved the efficiency of funds use. The financial risk prevention capacity in
the first half year had been further consolidated. The Company’s accounts receivable turnover period was 11 days, less 8 days
year-on-year, and inventory turnover period was 30 days, flat year-on-year.
⑤The Company has obtained certain achievement in human resources management and internal control construction. In human
resources management, the Company attached great importance to the stability of staff team, and opened channels for promoting
professional and technical personnel. Meanwhile, the Company reduced human cost, improved management efficiency and work
efficiency via employee downsizing. In the aspect of internal control construction, the Company constantly strengthened the
implementation of internal control system through strict appraisal, and constantly perfected internal control system via analyzing and
solving problems encountered during the implementation.
III. Composition of main business
Unit: RMB
Operating Operating cost Gross profit ratio Increase/decrease Increase/decrease Increase/decrease
revenue (%) of operating of operating cost of gross profit
revenue y-o-y y-o-y (%) ratio y-o-y (%)
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CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
(%)
According to industries
Flat glass 1,825,845,072 1,525,918,567 16.43% 2.31% 8.39% -4.69%
Architectural
1,407,038,222 964,415,998 31.46% 15.27% 16.50% -0.72%
glass
Solar energy 397,771,248 339,993,538 14.53% -14.23% -15.60% 1.39%
Off-setting -- -- --
--
between divisions -408,942,973 -411,376,355
According to products
Flat glass 1,825,845,072 1,525,918,567 16.43% 2.31% 8.39% -4.69%
Architectural
1,407,038,222 964,415,998 31.46% 15.27% 16.50% -0.72%
glass
Solar energy 397,771,248 339,993,538 14.53% -14.23% -15.60% 1.39%
Off-setting
-- -- -- --
between divisions -408,942,973 -411,376,355
According to regions
Mainland China 2,899,041,165 2,193,112,046 24.35% -2.25% 3.32% -4.08%
H.K. China 34,873,594 21,621,628 38% -77.04% -76.49% -1.45%
Europe 87,392,381 68,040,061 22.14% -55.44% -57.80% 4.35%
Asia (excluding
Mainland China 117,272,638 80,049,856 31.74% -4.50% -7.32% 2.08%
and H.K.)
North America 33,917,410 21,659,532 36.14% 58.07% 42.09% 7.18%
Australia 46,764,284 32,558,267 30.38% 38.06% 46.64% -4.07%
Other region 2,450,097 1,910,358 22.03% -58.46% -54.57% -6.68%
IV. Core Competitiveness Analysis
① The Company currently has created complete industrial chains in every industry with the advantage of industrial supplement. In
glass industry, the Company has built the industry chain as quartz sand → high quality float glass → architectural energy-saving
glass. In the solar energy industry, the Company has finished the comprehensive construction of industry chain from high purity
polycrystalline silicon materials, silicon wafer processing to cell and modules, photovoltaic rolled glass, etc. With the improvement
of technology in the chains, the industrial advantages emerged.
② The Company possesses a complete industry layout. At present, the Company has established large production bases in China
located in North, East, West, South and Central region, which help the Company be better close to the market and serve the market.
③ The Company has capability of technology innovation and product innovation. It owns independent intellectual property rights of
high-end float glass production process. The technology level of ultra-thin electronic glass is in the leading position in China. The
Company also keeps its R&D and production of energy-saving glass in line with the world advanced level, and makes its technique and
technology in the field of solar energy leading domestic market.
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CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
④The Company possesses high anti-risk capability. It has a perfect internal control system with sound performance carried out.
Meanwhile, the management and control ability of account receivable and inventory stands in a high level within the industry.
⑤ CSG's core competitiveness also comes from the aggressive, innovative, professional, experienced management team and
technical backbone team. Based on the perfect corporate governance structure, standardized management system and business
philosophy of high-end product line and quality consciousness, the Company constantly formulates mechanism and strictly controls
the operating risk, laying a solid foundation for company’s rapid sustainable development.
During the reporting period, the Company's core competitiveness remains strong
V. Investment analysis
1. External equity investment
1. External investment
√ Applicable □Not applicable
external investment
Amount invested in the same period of last
Amount invested in the report period (RMB) Changes
year (RMB)
23,000,000 23,000,000 0
Invested company
Equity proportion of listed company
Name Main business
in invested company (%)
Guangdong Golden Glass Technologies Limited R & D, production and sales of special glass 8.33%
2. Main subsidiaries and joint-stock companies
√ Applicable □Not applicable
Particular about main subsidiaries and joint-stock companies
Unit: RMB
Company Type Industries Main products or Register Total assets Net Assets Operating Operating Net profit
name service capital (RMB) (RMB) revenue profit (RMB)
(RMB) (RMB)
Chengdu CSG Subsidiary Manufacturing Development,
Glass Co., Ltd. manufacture and sales 166,660,000 946,503,940 327,763,928 481,361,347 42,714,333 35,165,742
of vary special glass
Hebei CSG Subsidiary Manufacturing Manufacture and sales
USD
Glass Co., Ltd. of vary special float 770,232,634 398,584,865 280,358,459 10,848,770 8,834,765
48,060,000
glass
Wujiang CSG Subsidiary Manufacturing Manufacture and sales
Glass Co., Ltd. of vary special float 465,040,000 1,648,857,828 561,335,087 326,459,576 18,552,621 16,749,134
glass
Xianning CSG Subsidiary Manufacturing Development, 235,000,000 752,225,465 256,255,352 343,520,520 -1,782,225 12,610,252
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CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
Glass Co., Ltd. manufacture and sales
of special float glass
Qingyuan CSG Subsidiary Manufacturing R&D, manufacture
Energy and sales of non-metal
Conservation mineral products and 300,000,000 291,633,074 284,870,305 0 -4,901,598 -3,676,198
New-materials materials
Co., Ltd.
Hebei Panel Subsidiary Manufacturing Manufacture and sales
Glass Co., Ltd. of varied ultra-thin 243,000,000 377,676,627 273,146,098 76,972,021 26,355,700 26,472,054
electronic glass
Yichang Subsidiary Manufacturing R&D, manufacture
Nanbo and sales of varied
200,000,000 411,361,553 220,442,245 1,608,439 -2,591,732 -1,941,673
Photoelectric ultra-thin electronic
Glass Co., Ltd. glass
Dongguan Subsidiary Manufacturing Dongguan CSG Solar
CSG Solar Glass Co., Ltd. 416,000,000 1,037,106,701 440,003,521 322,803,468 68,636,171 59,280,470
Glass Co., Ltd.
Jiangyou CSG Subsidiary Manufacturing Manufacture and sales
Mining of silica sand and
40,000,000 179,681,500 15,327,860 34,767,309 -3,300,070 -2,475,052
Development co-product
Co., Ltd.
Tianjin CSG Subsidiary Manufacturing Deep processing of
Architectural glass 178,000,000 438,568,294 283,238,684 215,138,163 19,886,415 20,699,075
Glass Co., Ltd.
Tianjin CSG Subsidiary Manufacturing Development,
Energy producing and sales of
128,000,000 355,460,534 220,266,316 243,776,316 37,081,033 35,376,671
Conservation energy-saving special
Glass Co., Ltd glass
Dongguan Subsidiary Manufacturing Deep processing of
CSG glass
240,000,000 938,876,187 374,246,524 406,260,292 66,465,306 58,378,262
Architectural
Glass Co., Ltd.
Wujiang CSG Subsidiary Manufacturing Deep processing of
East China glass
320,000,000 727,622,305 441,285,190 346,649,654 66,353,718 57,376,376
Architectural
Glass Co., Ltd.
Xianning CSG Subsidiary Manufacturing Deep processing of
Energy glass
165,000,000 655,209,856 204,267,350 113,942,677 17,052,791 19,926,235
Conservation
Glass Co., Ltd
Xianning CSG Subsidiary Manufacturing Deep processing of 80,000,000 583,164,133 147,609,326 230,935,562 46,993,524 39,679,134
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CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
Energy-Saving glass
Glass Co., Ltd
CSG (Hong Subsidiary Trading Glass trading and HKD
943,452,402 834,541,334 99,635,739 90,426,779 84,288,952
Kong) Limited investment holding 86,440,000
CSG Subsidiary Trading Glass trading
(Australia) AUD 500,000 18,129,670 5,243,766 26,764,284 3,310,900 2,317,630
Limited
Yichang CSG Subsidiary Manufacturing Manufacture and sales
Polysilicon of high purity silicon 1,467,980,000 2,969,180,756 888,232,303 236,373,886 -14,582,799 -9,696,357
Co., Ltd. material products
Dongguan Subsidiary Manufacturing Manufacture and sales
CSG PV-tech of solar cells 516,000,000 827,988,452 317,431,504 178,972,083 1,511,592 6,776,733
Co., Ltd.
Shenzhen CSG
Manufacture and sales
Display Joint-stock
Manufacturing of display device 143,000,000 1,540,983,231 846,536,524 302,446,982 191,905,216 154,510,001
Technology company
products
Co., Ltd.
3. Major investment with non-raised proceeds
√ Applicable □Not applicable
Unit: RMB’0,000
Project Planned Amount Accumulativ Progress of project(expected to finished from 2013-2015) Returns
investment invested in e amount from
amount the report actually project
period invested
ended as
period-end
Planning to build production lines for 1.2 million square In the
meters of coated insulating glass, 3 million square meters of report
wide flat coated glass and energy-saving glass substrate period, part
production line in Changjiang Industry Park of Xianning of the
Economic Development Zone, Hubei. At present, line-1 and project has
Xianning CSG
108,670 12,829 100,356 line 2 of energy-saving glass substrate ignited respectively been
project
in April and June, 2013. 1.2 million square meters of coated completed,
insulating glass production line has been put into operation and the net
at the end of the first quarter. 3 million square meters of profit was
wide flat coated glass production line has been in process of 32.54
debugging of equipment. million.
Planning to increase two coating glass production lines and In the
Expansion on 47,913 0 21,239
support insulating glass capacity. When the project report
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CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
energy-saving glass completed, the capacities of wide flat coated products will period, part
capacity of Wujiang add 3 million square meters, and capacity of coated of the
Projects insulating glass will add 1.2 million square meters every project has
year. Among this, the wide flat coated glass line of 3 been
million square meters has been completed, and the others completed
will be invested according to market situations. and the
revenue
was not
calculated
individually
.
Planning to build a wide flat coated glass production line. In the
When the project is completed, the annual deep-processing report
Expansion on
capacities of the wide flat coated products will reach period, the
energy-saving glass
19,835 15,383 16,631 3million square meters. It is estimated that the project will project is
capacity of Chengdu
be completed and put into operation in the end of 2014. still in
project
constructio
n.
Planning to implement cold hydrogenation and distillation The project
system on production line of polysilicon, technological entered into
Polysilicon cold transformation on giant energy-saving reduction furnace commercial
hydrogenation, and new-type CDI tail recovery treatment system, reduce operation
technological material consumption, power consumption and steam with profit
transformation consumption substantially so that the cost will be reduced of RMB
59,616 4,710 58,027
project of with more capacity obtained. This project has completed 4.24
distillation system, basically and will be put into operation in the third quarter. million
reduction furnace The project had been completed and entered into earned in
and CDI system commercial operation. the
operation
month.
Planning to build a ultra-thin electronic glass production
At present,
Yichang CSG line with capacity of 240T/D, the production line uses
there’s no
ultra-thin electronic 32,000 9,046 30,151 natural gas as fuel and adopts float process to produce
profit from
glass project 0.7~1.1mm ultra-thin glass. The project was ignited in
the project.
February 2014 .It is in trial production currently.
Planning to build a high-performance ultra-thin electronic Project still
Qingyuan glass production line with monthly capacity of in
high-performance approximately one million square meters in Qingyuan. The constructio
47,166 8,737 11,630
ultra-thin electronic production line adopts CSG’s unique technology to produce n in the
glass project 0.55mm~1.1mm higher performance ultra-thin electronic report
glass. The project will be completed at the end of 2014. period.
Being considered all factors and matching the terminal At present,
Wujiang CSG PV 57,980 10,410 49,403
market, removed Heyuan CSG PV glass project to Wujiang there’s no
15
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
Glass project to build a production line for PV rolled glass with capacity profit from
of 650 tons per day and a tempering deep processing the project.
production line with annual capacity of 16.2 million square
meters.The production line used clear natural gas as the
fuel. Approximately RMB 580 million has been invested to
the project and the line ignited in March 2014. It is in trial
production currently.
Planning to establish an on-line coated production line in
green energy industrial park of Dongguan CSG, achieving
Project still
resource sharing through making use of production line
in
Dongguan CSG processing facilities of Shenzhen CSG Float and
constructio
solar on-line coated 39,000 1,012 1,012 invigorating idle assets such as plant of Dongguan solar
n in the
project energy rolled glass project and its public facilities. The
report
Company planned to invest approximately RMB 390
period.
million, including RMB 252 million newly increased. The
project plans to complete in early 2015.
Planning to build the wafer expanding project in Yichang Project still
CSG. Among these, 300MW project has started to construct in
700MW wafer
and planned to complete in the end of 2014. At that time, constructio
expanding project in 198,000 13,087 21,393
CSG will own the wafer productivity of 500MW in total. n in the
Yichang CSG
The balance 400MW project will be invested according to report
industry situations. period.
Subtotal 610,180 75,214 309,842 -- --
Project Planned Amount Accumulativ Progress of project(projects suspension) Returns
investment invested in e amount from
amount the report actually project
period invested
ended as
period-end
Yichang CSG Planning to build the solar cell production line with annual
700MW solar cell 169,330 0 0 capacity of 700MW. The project was suspended and further --
project investment will be based on actual industry situations.
Planning to expand the solar module production line with
Expanding 500MW
annual capacity of 500MW. The project was suspended due
solar module project 63,600 0 0 --
to industry situations and further investment will be based
in Dongguan
on actual industry situations
Subtotal 232,930 0 0 -- --
Total 843,110 75,214 309,842 -- --
Explanation on major investment with non-raised proceeds
1. Xianning CSG projects (including energy-saving glass), Wujiang energy-saving project and Chengdu energy-saving project
16
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
have been approved in 18th meeting of the 5th board of directors on 23 December 2010.
2. Yichang CSG technological transformation projects included polysilicon cold hydrogenation, technological transformation
project of distillation system, reduction furnace and CDI system. These projects have been approved in 18th meeting of the 5th
the board on 23 December 2010, 2nd meeting of the 6th board of directors on 21 April 2011 and the extraordinary meeting of the
6th board of directors on 27 September 2011 respectively.
3. Yichang CSG Ultra-thin glass project has been deliberated and approved by extraordinary meeting of the 6th board of directors
on 14 December 2013.
4. Qingyuan high-performance ultra-thin electronic glass project has been deliberated and approved by extraordinary meeting of
the 6th board of directors on 2 August 2013.
5. Wujiang CSG PV Glass project has been deliberated and approved by extraordinary meeting of 6th board of directors on 30
April 2013.
VI. Prediction of business performance from January to September 2014
Alert of loss or significant change in accumulative 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 √Not applicable
VII. Implementation of profit distribution in the report period
Implementation or adjustment of profit distribution plan in reporting period, cash dividend plan and converting capital reserve into
share capital in particular
√ Applicable □Not applicable
The profit distribution plan for 2013 was approved by Annual Shareholders’ General Meeting 2013 held on 14 April 2014 which
distributed RMB 3 (tax included) in cash for every 10 shares to all shareholders. Notice of the distribution has been published on
China Securities Journal, Securities Times and Hong Kong Commercial Daily on 28 April 2014, and the profit has been distributed.
No profit distribution and capital reserve capitalizing of the Company exercised in the first half year of 2014.
Special explanation on cash dividend policy
Satisfy regulations of General Meeting or requirement of Article of Association
Y
(Y/N)
Well-defined and clearly dividend standards and proportion (Y/N) Y
Completed relevant decision-making process and mechanism (Y/N) Y
Independent directors perform duties completely and play a proper role (Y/N) Y
Minority shareholders have opportunity to express opinions and demands totally
Y
and their legal rights are fully protected (Y/N)
Condition and procedures are compliance and transparent while the cash bonus
Cash bonus policy has not changed or adjusted
policy adjusted or changed (Y/N)
VIII. Plan of profit distribution and share converted from capital reserve in the report period
□ Applicable √ Not applicable
The Company has no plans of cash dividend distribution, bonus shares distribution or share converted from capital reserve in the first
17
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
half of the year.
IX. Reception of research, communication and interview in the report period
√ Applicable □ Not applicable
Contents discussed and material
Time Place Way Type Reception
provided
HSBC Global Assets Management (H.K.) Introduced the operation condition
2014-5-28 The Company Field research Institute
Co., Ltd., Macquarie Bank Limited of the Company disclosed
18
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
Section V Important Events
I. Corporate governance of the Company
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 perfect, operation is regulated, corporate governance is consummated,
which accord with the requirements of relevant document on corporate governance of listed company issued by CSRS. During the
report period, it does not exist that the company provides the undisclosed information to the largest shareholder and actual controller.
And it does not exist that non-operating fund of listed company is occupied by the largest shareholder and its affiliated enterprises.
II. Assets transaction
1. Assets sold
√ Applicable □ Not applicable
The
The net profits
proportion
contributed to The Whether Whether
of the net The
the listed profit the the
Transa profits that Wheth association
company by and loss Pricing ownership involved Index
The ction the assets for er it is with the Date of
Assets for the asset from generate principle of creditor's of
Counterparty date of price sale related counterparty disclosu
sale the beginning d by of assets involved rights and disclos
sale (RMB contributed transa (Applicable re
of current sale for sale property debts are ure
0,000) to the listed ction for related
period to the (RMB rights is all
company in transaction)
date of sale 0,000) transferred transferred
total profits
(RMB 0,000)
(%)
Approxi
mately
100 equity RMB Pricing
GoldenTime
of 311.25 refer to
Investment
Shenzhen 2014-4 million the net 2013-9- 2013-0
Consultant 91,800 -323 52% N Not applicable Y Y
CSG Float -30 investm assets of 28 28
(Shenzhen)
Glass Co., ent the target
Co., Ltd.
Ltd. earnings company
expecte
d
19
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
III. Implementation of stock option incentive and its impact
√ Applicable □ Not applicable
The 15th meeting of 6th session of the Board held on 22 March 2014 deliberated and approved the “Proposal of Incentive Plan for
Restricted Stock of A-share (Draft) and Summary” (hereinafter referred to Incentive Plan).
The incentive plan will issue no more than 90 million restricted A shares to grant plan participants in one time. The participants who
can be awarded with restricted shares should correspond to award requirements regulated in restrict shares incentive plan. The Plan is
valid for 48 months. The first 12 months since granted date was the lockup period and the later 36 months was the unlocked period.
During the unlocked period, plan participants can apply unlocking the restricted shares in three phases if achieved the release
condition, and the unlocked ratio shall be no more than 40%、30%、30% of the total restricted shares respectively. The incentive plan
has been put on file without objection by China Securities Regulatory Commission and should be submitted to the general meeting of
shareholders for deliberation.
Details of the incentive plan can be found in the relevant notices released in the China Securities Journal, Securities Times, Hong
Kong Commercial Daily and Juchao Website (www.cninfo.com.cn) on 25 March 2014.
IV. Major related transaction
1. Related transaction with routine operation concerned
√ Applicable □ Not applicable
Trading Proportion in Market price
Related Related Related Pricing
Related Dealing amount the amount of Means of of similar Date of Index of
transaction transaction transactio principl
relationship price (RMB the same payments transaction disclosure disclosure
parties type n content e
0,000) transaction (%) available
Shenzhen CSG Sales products Refers
Sales
Display Associated and to Not Monthly Not Not Not
utra-thin 455.32 0.14%
Technology enterprise commodities to market applicable cost applicable applicable applicable
glass
Co., Ltd. related person price
Total -- -- 455.32 -- -- -- -- --
Details of major sold-out order sent back N/A
The actual implementation of routine related transactions that is about to occurred in the Period with total
N/A
amount estimated by category (if any)
Reason for the great difference between trade price and market reference price (if any) Not applicable
V. Particular about non-operating fund of listed company is occupied by controlling
shareholder and its affiliated enterprises
□Applicable √Not applicable
It does not exist that non-operating fund of listed company is occupied by controlling shareholder and its affiliated enterprises in the
report period.
20
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
VI. Significant contract and implementations
1. Guarantees
√ Applicable □ Not applicable
Unit: RMB’0,000
Particulars about the external guarantee of the Company (Barring the guarantee for subsidiaries)
Actual date
of Complete
Related Actual Guarantee
Name of the Company Guarantee happening Guarantee Guarantee implement
Announcement guarantee for related
guaranteed limit (Date of type term ation or
disclosure date limit party (Y/N)
signing not
agreement)
Guarantee of the Company for the subsidiaries
Actual date
Guarante
of
Related Actual Complete e for
Name of the Company Guarantee happening Guarantee Guarantee
Announcement guarantee implementat related
guaranteed limit (Date of type term
disclosure date limit ion or not party
signing
(Y/N)
agreement)
Chengdu CSG Glass 2014-1-14 15,000 General
5-year N N
Co., Ltd. assurance
Chengdu CSG Glass 2014-1-14 10,000 General 1-year
N N
Co., Ltd. assurance
Chengdu CSG Glass 2014-1-14 10,000 General 1-year
N N
Co., Ltd. assurance
Chengdu CSG Glass 2014-3-25 12,500 General 1-year
N N
Co., Ltd. assurance
Yichang CSG 2014-3-25 8,000 2014-5-20 1,220 General 3-year
Photoelectric Glass Co., assurance N N
Ltd.
Yichang CSG 2014-3-25 30,000 General 1-year
N N
Polysilicon Co., Ltd. assurance
Qingyuan CSG Energy 2014-3-25 30,000 General 3-year
Conservation assurance N N
New-materials Co., Ltd.
Qingyuan CSG Energy 2014-4-22 30,000 General 3-year
Conservation assurance N N
New-materials Co., Ltd.
145,500 Total amount of actual occurred
Total amount of approving guarantee
guarantee for subsidiaries in report 63,688
for subsidiaries in report period (B1)
period (B2)
Total amount of approved guarantee for 623,506 Total balance of actual guarantee for
subsidiaries at the end of reporting subsidiaries at the end of reporting 72,131
period (B3) period (B4)
Total amount of guarantee of the Company( total of two abovementioned guarantee)
21
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
Total amount of approving guarantee in Total amount of actual occurred
145,500 63,688
report period (A1+B1) guarantee in report period (A2+B2)
Total amount of approved guarantee at Total balance of actual guarantee at the
623,506 72,131
the end of report period (A3+B3) end of report period (A4+B4)
The proportion of the total amount of actually guarantee in the net
8.99%
assets of the Company(that is A4+ B4)
Including:
Amount of guarantee for shareholders, actual controller and its
0
related parties(C)
The debts guarantee amount provided for the guaranteed parties
0
whose assets-liability ratio exceed 70% directly or indirectly(D)
Proportion of total amount of guarantee in net assets of the
0
Company exceed 50%(E)
Total amount of the aforesaid three guarantees(C+D+E) 0
Explanations on possibly bearing joint and several liquidating The Company bearing jointly responsibility in guarantee range if
responsibilities for undue guarantees the subsidiaries end up in default.
Explanations on external guarantee against regulated procedures N/A
Explanation on guarantee with way of complex
Nil
VII. Commitments from the Company or shareholder with over 5% share held in the report
period or continues to the report period
√ Applicable □ Not applicable
Commit- Commit-
Implement-
Commitments Promisee Content of commitments ment ment
ation
date term
The Company has implemented share
merger reform in May 2006. Till June
2008, the share of the original
The original
non-tradable shareholders which holding
non-tradable By the end of
over 5% total shares of the Company had
shareholder the report
all released. Therein, the original
Shenzhen period, the
non-tradable shareholder Shenzhen
International above
International Holdings (SZ) Limited and
Commitments for Holdings (SZ) 2006-5- shareholders of
Xin Tong Chan Industrial Development N/A
Share Merger Reform Limited and Xin 22 the Company
(Shenzhen) Co., Ltd. both are
Tong Chan had strictly
wholly-funded subsidiaries to Shenzhen
Industrial carried out
International Holdings Limited
Development their promises.
(hereinafter Shenzhen International for
(Shenzhen) Co.,
short) listed in Hong Kong united stock
Ltd.
exchange main board. Shenzhen
International made commitment that it
would strictly carry out related
22
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
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
reorganization
Commitments in initial public
offering or re-financing
Other commitments for
medium and small
shareholders
Completed on time or not Yes
Detail reasons for
un-complement and further Not applicable
plan
VIII. Engaging and dismissing of CPA
Whether the semi-annual report was audited or not
□ Yes √ No
IX. Statement on other important matters
√ Applicable □ Not applicable
1. Short-term Financing Bonds
On 6 August 2012, the First Extraordinary Shareholders’ General Meeting 2012 of CSG Holding Co., Ltd deliberated and approved
the proposal of short-term financing bills offering with application of short-term financing bill within RMB 2.2 billion limit. On 11
January 2013, National Association of Financial market Institutional Investors held its 1st registration meeting of 2013, in which
NAFMII decided to accept the Company’s short-term financing bills registration, amounting to RMB 1.1 billion, valid until January
25, 2015. China Merchants Bank Co., Ltd, and Shanghai Pudong Development Bank Co., Ltd were joint lead underwriters of these
short-term financing bills, which could be issued by stages within the validity period of registration. On 7 March 2013, the Company
issued the 1st batch of short-term financing bills with a total amount of RMB 1.1 billion and deadline of one year, and cashed
completed on 6 March 2014. On 27 June 2014, the Company continued to issue the 2nd batch of short-term financing bills for the
year with a total amount of RMB 700 million and annual interest rate of 5.10%, and the expiry date is 27 June 2015.
On 23 April 2013, annual general meeting of 2012 of CSG Holding Co., Ltd deliberated and approved the proposal of short-term
financing bills offering with application of short-term financing bills with a total amount of no more than 40 percent of the
23
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
Company’s net assets (the issued short-term financing bills included). On 20 December 2013, National Association of Financial
market Institutional Investors held its 74th registration meeting of 2013, in which NAFMII decided to accept the Company’s
short-term financing bills registration, amounting to RMB 1.1 billion, valid for two years. China CITIC Bank Corporation Limited
and Agricultural Bank of China Co., Ltd were joint lead underwriters of these short-term financing bills, which could be issued by
stages within the validity period of registration. On 14 March 2014, the Company issued short-term financing bills with a total
amount of RMB 0.5 billion and deadline of one year. As for the remaining RMB 0.6 billion and one-year term short-term financing
bonds, the issuance date is undetermined.
For details, please refer to www.chinabond.com.cn and www.chinamoney.com.cn.
2. Corporate bonds
As approved by the Company in the second extraordinary general meeting for 2009, the Company issued corporate bonds amounting
to RMB2 billion on 20 October 2010. This batch of bonds was divided into two groups, with maturity terms being 5 years and 7
years respectively. For the bonds with maturity term of 5 years, the issuance amount was RMB1 billion; and for those of 7 years, the
issuance amount was RMB1 billion also. Besides, the bonds were attached with the option of issuer to raise additional coupon rate
and the put option of investor. The corporate bonds were listed for trading on Shenzhen Stock Exchange on 10 November 2010, with
annual interest rate of 5.33% which remained constant for the first 5 years during the duration period. The abbreviation of the bonds
with 5 years term was ‘10CSG01’, with stock code of 112021; and the abbreviation of the bonds with 7 years term was
‘10CSG02’, with stock code of 112022. The trading termination dates were 20 October 2015 and 20 October 2017 respectively
(the final announcement issued by the Company shall prevail). For details, please refer to the Result Announcement Concerning
Issuance of Corporate Bonds in 2010 disclosed at China Securities Journal, Securities Times, Hong Kong Commercial Daily and
www.cninfo.com.cn on 26 October 2010.
According to the tracking rating conducted by CCXR in 2013, the credit rating of the Company’s main body was AA+, with
outlook of stable. The credit rating of the aforementioned bonds was AA+. The Company has paid the interests of the bonds for the
three interest accrual periods on 20 October 2011, 22 October 2012 and 21 October 2013. In future, the Company will continue to
provide assurance for payment of principal and interests of corporate bonds by solidly development of own business in the future.
24
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
Section VI. Changes in Shares and Particulars about Shareholders
I. Changes in Share Capital
Unit: Share
Before the Change Increase/Decrease in the Change (+, -) After the Change
Capitalizat
Proportion New shares Bonus ion of Proportion
Amount Others Subtotal Amount
(%) issued shares public (%)
reserve
I. Restricted shares 10,284,197 0.50% -301,200 -301,200 9,982,997 0.48%
1. State-owned shares 0 0% 0 0 0%
2. State-owned legal person’s
0 0% 0 0 0%
shares
3. Other domestic shares 10,284,197 0.50% -301,200 -301,200 9,982,997 0.48%
Including: Domestic legal 0 0% 0 0 0%
person’s shares
Domestic natural 10,284,197 0.50% -301,200 -301,200 9,982,997 0.48%
person’s shares
4. Foreign shares 0 0% 0 0 0%
Including: Foreign legal 0 0% 0 0 0%
person’s shares
Foreign natural person’s 0 0% 0 0 0%
shares
II. Unrestricted shares 2,065,051,363 99.50% 301,200 301,200 2,065,352,563 99.52%
1. RMB Ordinary shares 1,302,467,371 62.76% 301,200 301,200 1,302,768,571 62.77%
2. Domestically listed foreign
762,583,992 36.75% 0 762,583,992 36.75%
shares
3. Overseas listed foreign
0 0% 0 0 0%
shares
4. Others 0 0% 0 0 0%
III.Total shares 2,075,335,560 100% 0 2,075,335,560 100%
Reasons for share changed
√ Applicable □ Not applicable
Removal & engagement for senior executives
Approval of share changed
□ Applicable √ Not applicable
Ownership transfer for changed shares
√ Applicable □ Not applicable
On 29 November 2013, Mr. Lu Wenhui was no longer in office of the Company as senior executive, shares held by Mr. Lu Wenhui
which had been locked up for six months by regulation released in May 2014. Therefore, 573,750 shares were decreased in restricted
senior executives’ share. Mr. Zhang Bozhong was appointed as vice president of the Company on 14 April 2014. Therefore, the 75%
shares held by Mr. Zhang Bozhong, that was 272,550 shares were classified into the senior executives’ restricted shares.
25
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
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 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
Explanation on changes in aspects of total shares, shareholder structure, assets of the Company and liability structure
□Applicable √ Not applicable
II. Particulars about shareholder and actual controller of the Company
Unit: Share
Total shareholders in the report Total preference shareholders with voting rights
217,800 0
period recovered at end of the report period (if applicable)
Shareholder with above 5% shares hold or top 10 shareholders
Full name of Shareholders Nature of Proportion Total shares Changes in Amount of Amount of Number of share
shareholder of shares held at the report period restricted un-restricted pledged/frozen
held (%) end of report shares shares held
Share Amo
period held
status unt
China Northern Industries State-owned
3.62% 75,167,934 0 0 75,167,934
Corporation legal person
Xin Tong Chan Industrial Domestic non
Development (Shenzhen) Co., state-owned 2.99% 62,052,845 0 0 62,052,845
Ltd. legal person
Shenzhen International Domestic non
Holdings (Shenzhen) Co., Ltd. state-owned 2.88% 59,778,813 0 0 59,778,813
legal person
BBH A/C VANGUARD
Foreign legal
EMERGING MARKETS 0.72% 15,003,364 -366,800 0 15,003,364
person
STOCK INDEX FUND
ICBC—Lion Value Growth Domestic non
Stock Investment Fund state-owned 0.67% 14,000,000 -6,000,000 0 14,000,000
legal person
CMBC—Yinhua 100 Grading Domestic non
Stock Investment Fund state-owned 0.64% 13,301,406 13,301,406 0 13,301,406
legal person
PICC Life – Dividend – Domestic non
Personal insurance state-owned 0.51% 10,653,131 3,849,929 0 10,653,131
legal person
CMS (H.K.) Foreign legal
0.51% 10,542,928 3,920,526 0 10,542,928
person
26
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
GUOTAI JUNAN
Foreign legal
SECURITIES(HONGKONG) 0.48% 9,928,203 -510,845 0 9,928,203
person
LIMITED
Domestic non
ICBC—Rongtong 100 Index
state-owned 0.44% 9,204,358 -1,046,600 0 9,204,358
Stock Investment Fund
legal person
Strategic investors or general legal N/A
person becomes top 10 shareholders due
to shares issued (if applicable)
Explanation on associated relationship Among shareholders as listed above, Shenzhen International Holdings (Shenzhen) Co., Ltd.
among the aforesaid shareholders and Xin Tong Chan Development (Shenzhen) Co., Ltd. are holding enterprises and belong
to controlling enterprise of Shenzhen International Holdings Co., Ltd.. Except for this, It is
unknown whether other shareholders belong to related party or have associated relationship
regulated by the Management Regulation of Information Disclosure on Change of
Shareholding for Listed Companies.
Particular about top ten shareholders with un-restrict shares held
Shareholders’ name Amount of un-restrict Type of shares
shares held at year-end
Type Amount
China Northern Industries Corporation 75,167,934 RMB ordinary shares 75,167,934
Xin Tong Chan Industrial Development (Shenzhen) Co., Ltd. 62,052,845 RMB ordinary shares 62,052,845
Shenzhen International Holdings (Shenzhen) Co., Ltd. 59,778,813 RMB ordinary shares 59,778,813
BBH A/C VANGUARD EMERGING MARKETS STOCK INDEX Domestically listed
15,003,364 15,003,364
FUND foreign shares
ICBC—Lion Value Growth Stock Investment Fund 14,000,000 RMB ordinary shares 14,000,000
CMBC—Yinhua 100 Grading Stock Investment Fund 13,301,406 RMB ordinary shares 13,301,406
PICC Life – Dividend – Personal insurance 10,653,131 RMB ordinary shares 10,653,131
CMS (H.K.) Domestically listed
10,542,928 10,542,928
foreign shares
GUOTAI JUNAN SECURITIES(HONGKONG) LIMITED Domestically listed
9,928,203 9,928,203
foreign shares
ICBC—Rongtong 100 Index Stock Investment Fund 9,204,358 RMB ordinary shares 9,204,358
Among shareholders as listed above, Shenzhen International Holdings (Shenzhen) Co., Ltd.
and Xin Tong Chan Development (Shenzhen) Co., Ltd. are holding enterprises and belong
Statement on associated relationship or
to controlling enterprise of Shenzhen International Holdings Co., Ltd.. Except for this, It is
consistent action among the above
unknown whether other shareholders belong to related party or have associated relationship
shareholders:
regulated by the Management Regulation of Information Disclosure on Change of
Shareholding for Listed Companies.
Explanation on shareholders involving N/A
margin business (if applicable)
27
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
Agreed to buy back deals occurred in Period from shareholders
□Yes √ No
III. Changes of controlling shareholder or actual controller
Changes of controlling shareholder in the report period
□Applicable √ Not applicable
Controlling shareholders have no changed in the report period.
Changes of actual controller in the report period
□Applicable √ Not applicable
Actual controller has no changed in the report period.
IV. Share holding increasing plan proposed or implemented in the report period from
shareholder of the Company and its concerted action person
□ Applicable √Not applicable
As far as the Company knows, there is no share holding increasing plan proposed or implemented in the report period from
shareholder of the Company and its concerted action person.
28
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
Section VII. Particulars about Directors, Supervisors and Senior
Executives and Employees
I. Changes of shares held by directors, supervisors and senior executives
□ Applicable √ Not applicable
Shares held by directors, super visors and senior executives have no change in the report period, more details can be found in Annual
Report 2013.
II. Changes of the directors, supervisors and senior executives
√Applicable □Not applicable
Name Title Type Date Reasons
Independent
Du Wenjun Elected 2014-04-14 At expiration of office term
Director
Chen Chao Director Elected 2014-04-14 At expiration of office term
Yan Wendou Supervisor Elected 2014-03-14 Elected on workers congress
Board of the Company agrees to nominate Mr. Zhang
Zhang Bozhong Deputy President Appointed 2014-04-14 Bozhong servers as Deputy President of the Company
due to business development requirement
Leave office
Independent
Chen Chao while terms 2014-04-14 Leave office upon term expiration
Director
expired
Ke Hanqi Director Leave office 2014-04-14 At expiration of office term
Submitted resignation to Supervisory Committee due
Sun Jingyun Supervisor Leave office 2014-03-13
to career moves
29
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
Section VIII . Financial Report
(I) Auditors’ Report
Whether the Semi-annual Report is audited or not
□ Yes √ No
The Semi-annual Report of the Company is not audited.
(II) Financial Statements
All figures in the Notes to the Financial Statements are in RMB.
1. Consolidated Balance Sheet
Prepared by CSG Holding Co., Ltd.
Unit: RMB
Items Ending balance Beginning balance
Current asset:
Monetary capital 287,736,235 279,672,523
Settlement provision
Outgoing call loan
Transactional financial assets
Notes receivable 307,341,178 323,889,490
Account receivable 245,616,313 136,430,683
Prepayment 119,246,734 73,378,329
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance contracts receivable
Interest receivable
Dividend receivable 26,343,365
Other account receivable 41,390,951 109,366,023
Repurchasing of financial assets
Inventories 443,158,547 378,684,712
Non-current asset due in 1 year
Other current asset 187,292,116 1,021,464,095
Total of current asset 1,658,125,439 2,322,885,855
Non-current assets
Disburse of consigned loans
30
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
Available-for-sale financial asset 135,900,000 122,760,000
Expired investment in possess
Long-term receivable
Long-term share equity investment 751,594,586 770,037,176
Investment real estates
Fixed assets 9,208,002,553 7,979,937,683
Construction in process 1,964,018,775 2,762,418,100
Engineering goods
Fixed asset disposal
Production physical assets
Gas & petrol
Intangible assets 948,567,405 933,329,528
R&D expense 10,450,066 9,881,310
Goodwill 3,039,946 3,039,946
Long-term amortizable expenses 2,896,704 3,280,021
Differed income tax asset 107,855,079 164,787,158
Other non-current asset 6,510,000 6,510,000
Total of non-current assets 13,138,835,114 12,755,980,922
Total of assets 14,796,960,553 15,078,866,777
Current liabilities
Short-term loans 1,958,295,208 1,424,743,800
Loan from Central Bank
Deposit received and hold for others
Call loan received
Trade off financial liabilities
Notes payable 8,221,924 4,429,188
Account payable 1,000,862,699 981,616,449
Prepayment received 149,764,555 160,689,070
Selling of repurchased financial assets
Fees and commissions receivable
Employees’ wage payable 112,079,096 166,377,238
Tax payable 99,596,206 160,754,703
Interest payable 86,785,042 60,767,534
Dividend payable 687,627 687,627
31
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
Other account payable 231,749,754 557,130,583
Reinsurance fee payable
Insurance contract provision
Entrusted trading of securities
Entrusted selling of securities
Non-current liability due in 1 year 182,026,370 399,849,715
Other current liability 300,000 300,000
Total of current liability 3,830,368,481 3,917,345,907
Non-current liabilities
Long-term borrowings 275,992,783 302,904,204
Bond payable 1,993,347,401 1,991,041,175
Long-term payable
Special payable
Anticipated liabilities
Differed income tax liability 34,118,278 34,298,029
Other non-recurring liabilities 414,180,279 432,364,880
Total of non-current liabilities 2,717,638,741 2,760,608,288
Total of liability 6,548,007,222 6,677,954,195
Owners’ equity (or shareholders’ equity)
Capital paid in (or share capital) 2,075,335,560 2,075,335,560
Capital reserves 1,394,184,448 1,391,366,888
Less: Shares in stock
Special reserves 15,335,600 14,503,860
Surplus reserves 765,048,720 765,048,720
Common risk provision
Retained profit 3,770,184,613 3,803,574,842
Different of foreign currency translation -945,426 -1,935,731
Total of owner’s equity belong to the parent
8,019,143,515 8,047,894,139
company
Minor shareholders’ equity 229,809,816 353,018,443
Total of owners’ equity (or shareholders’ equity) 8,248,953,331 8,400,912,582
Total of liability and shareholders’ equity (or
14,796,960,553 15,078,866,777
owners’ equity)
Legal Representative：Zeng Nan CFO：Luo Youming Manager of the financial department：Zhang Guoming
32
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
2. Balance Sheet of the Parent Company
Prepared by CSG Holding Co., Ltd.
Unit: RMB
Items Ending balance Beginning balance
Current asset:
Monetary capital 144,593,055 129,337,516
Transactional financial assets
Notes receivable
Account receivable
Prepayment
Interest receivable
Dividend receivable 26,318,201
Other account receivable 3,670,966,095 3,082,240,537
Inventories
Non-current asset due in 1 year
Other current asset
Total of current asset 3,841,877,351 3,211,578,053
Non-current assets
Available-for-sale financial asset 104,235,300 94,156,920
Expired investment in possess
Long-term receivable 1,701,290,000 1,953,745,783
Long-term share equity investment 4,409,380,323 4,966,621,199
Investment real estates
Fixed assets 35,762,338 38,163,267
Construction in process
Engineering goods
Fixed asset disposal
Production physical assets
Gas & petrol
Intangible assets 2,427,736 2,649,635
R&D expense
Goodwill
Long-term amortizable expenses 2,127,526 2,424,621
Differed income tax asset
33
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
Other non-current asset
Total of non-current assets 6,255,223,223 7,057,761,425
Total of assets 10,097,100,574 10,269,339,478
Current liabilities
Short-term loans 1,695,000,000 1,255,000,000
Trade off financial liabilities
Notes payable
Account payable 591,642 923,245
Prepayment received
Employees’ wage payable 29,329,693 55,932,331
Tax payable 1,752,051 26,978,661
Interest payable 30,763,327 18,800,998
Dividend payable 687,627 687,627
Other account payable 333,500,125 829,844,788
Non-current liability due in 1 year 150,000,000
Other current liability
Total of current liability 2,091,624,465 2,338,167,650
Non-current liabilities
Long-term borrowings
Bond payable 1,993,347,401 1,991,041,175
Long-term payable
Special payable
Anticipated liabilities
Differed income tax liability 21,648,575 19,128,980
Other non-recurring liabilities 11,792,800 11,792,800
Total of non-current liabilities 2,026,788,776 2,021,962,955
Total of liability 4,118,413,241 4,360,130,605
Owners’ equity (or shareholders’ equity)
Capital paid in (or share capital) 2,075,335,560 2,075,335,560
Capital reserves 1,442,362,965 1,434,441,128
Less: Shares in stock
Special reserves
Surplus reserves 779,594,080 779,594,080
Common risk provision
34
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
Retained profit 1,681,394,728 1,619,838,105
Different of foreign currency translation
Total of owners’ equity (or shareholders’ equity) 5,978,687,333 5,909,208,873
Total of liability and shareholders’ equity (or
10,097,100,574 10,269,339,478
owners’ equity)
Legal Representative：Zeng Nan CFO：Luo Youming Manager of the financial department：Zhang Guoming
3.Consolidated Income Statement
Prepared by CSG Holding Co., Ltd.
Unit: RMB
Items Balance of this period Balance of last period
I. Total revenue 3,262,681,672 3,536,965,783
Incl. Business income 3,262,681,672 3,536,965,783
Interest income
Insurance fee earned
Fee and commission received
II. Total business cost 2,960,932,907 3,051,735,433
Incl. Business cost 2,438,593,004 2,514,678,053
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 16,421,798 23,235,766
Sales expense 114,315,080 127,942,744
Administrative expense 280,194,020 264,014,052
Financial expenses 109,025,628 119,638,263
Asset impairment loss 2,383,377 2,226,555
Plus: gains from change of fair value (“-“for loss)
Investment gains (“-“ for loss) 320,762,071 432,000
Incl. Investment gains from affiliates 9,407,007
Exchange gains (“-“ for loss)
35
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
III. Operational profit (“-“ for loss) 622,510,836 485,662,350
Plus: non-operational income 57,283,254 48,291,577
Less: non-operational expenditure 1,599,736 8,395,202
Incl. Loss from disposal of non-current assets 1,446,174 288,211
IV. Gross profit (“-“ for loss) 678,194,354 525,558,725
Less: Income tax expenses 60,997,406 113,728,215
V. Net profit (“-“ for net loss) 617,196,948 411,830,510
Including: Net profit realized by the entity taken over
before the takeover
Net profit attributable to the owners of parent company 589,210,439 353,719,746
Minor shareholders’ equity 27,986,509 58,110,764
VI. Earnings per share: -- --
(I) Basic earnings per share 0.28 0.17
(II) Diluted earnings per share 0.28 0.17
VII. Other misc. incomes 11,104,135 -10,269,219
VIII. Total of misc. incomes 628,301,083 401,561,291
Total of misc. incomes attributable to the owners of the
600,315,982 343,450,704
parent company
Total misc gains attributable to the minor shareholders 27,985,101 58,110,587
Legal Representative：Zeng Nan CFO：Luo Youming Manager of the financial department：Zhang Guoming
4. Income Statement of the Parent Co.
Prepared by CSG Holding Co., Ltd.
Unit: RMB
Items Balance of this period Balance of last period
I. Turnover 0 741,079
Less: Operation cost 0 41,575
Business tax and surcharge
Sales expense
Administrative expense 42,738,239 22,794,486
Financial expenses 54,974,113 17,523,341
Asset impairment loss 1,209 -774,291
Plus: gains from change of fair value (“-“ for loss)
Investment gains (“-“ for loss) 771,542,246 537,075,800
36
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
Incl. Investment gains from affiliates 69,828,686
II. Operational profit (“-“ for loss) 673,828,685 498,231,768
Plus: Non business income 866,216 6,327,040
Less: Non-business expenses 3,741
Incl. Loss from disposal of non-current assets 3,741
III. Total profit (“-“ for loss) 674,694,901 504,555,067
Less: Income tax expenses -9,462,390
IV.Net profit (“-“ for net loss) 684,157,291 504,555,067
V. Earnings per share -- --
(I) Basic earnings per share
(II) Diluted earnings per share
VI. Other misc gains 7,558,785 -6,787,827
VII. Total of integrated income 691,716,076 497,767,240
Legal Representative：Zeng Nan CFO：Luo Youming Manager of the financial department：Zhang Guoming
5. Consolidated Cash Flow Statement
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 3,730,356,839 4,001,904,415
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 20,278,992 24,255,403
Other cash received from business operation 34,582,138 54,346,067
37
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
Sub-total of cash inflow from business activities 3,785,217,969 4,080,505,885
Cash paid for purchasing of merchandise and services 2,279,746,228 2,333,926,761
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 411,035,715 395,628,362
Taxes paid 309,660,571 449,961,157
Other cash paid for business activities 203,847,248 193,730,893
Sub-total of cash outflow from business activities 3,204,289,762 3,373,247,173
Cash flow generated by business operation, net 580,928,207 707,258,712
II. Cash flow generated by investing
Cash received from investment retrieving
Cash received as investment profit 444,816
Net cash retrieved from disposal of fixed assets, intangible assets,
10,631,070 15,201,967
and other long-term assets
Net cash received from disposal of subsidiaries or other operational
463,160,123 20,000,000
units
Other investment-related cash received 99,101,310 46,277,135
Sub-total of cash inflow due to investment activities 573,337,319 81,479,102
Cash paid for construction of fixed assets, intangible assets and
998,359,544 939,098,718
other long-term assets
Cash paid as investment 55,971,894
Net increase of loan against pledge
Net cash received from subsidiaries and other operational units 39,001,200
Other cash paid for investment activities 6,616,080 7,000,000
Sub-total of cash outflow due to investment activities 1,060,947,518 985,099,918
Net cash flow generated by investment -487,610,199 -903,620,816
III. Cash flow generated by financing
Cash received as investment 21,136,000 21,085,757
Incl. Cash received as investment from minor shareholders 21,136,000 21,085,757
Cash received as loans 3,206,640,372 2,107,803,785
Cash received from bond placing
Other financing-related cash received 353,460,920 21,469,628
38
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
Subtotal of cash inflow from financing activities 3,581,237,292 2,150,359,170
Cash to repay debts 2,917,823,729 1,552,112,829
Cash paid as dividend, profit, or interests 747,047,327 473,728,339
Incl. Dividend and profit paid by subsidiaries to minor shareholders 56,362,791 108,861,756
Other cash paid for financing activities
Subtotal of cash outflow due to financing activities 3,664,871,056 2,025,841,168
Net cash flow generated by financing -83,633,764 124,518,002
IV. Influence of exchange rate alternation on cash and cash
400,331 -2,761,004
equivalents
V. Net increase of cash and cash equivalents 10,084,575 -74,605,106
Plus: Balance of cash and cash equivalents at the beginning of term 276,450,869 447,736,536
VI. Balance of cash and cash equivalents at the end of term 286,535,444 373,131,430
Legal Representative：Zeng Nan CFO：Luo Youming Manager of the financial department：Zhang Guoming
6. Cash Flow Statement of the Parent Co.
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 1,181,264 1,613,696
Sub-total of cash inflow from business activities 1,181,264 1,613,696
Cash paid for purchasing of merchandise and services 1,500 2,446,575
Cash paid to staffs or paid for staffs 51,858,713 7,608,975
Taxes paid 16,935,417 240,332
Other cash paid for business activities 10,024,290 8,868,114
Sub-total of cash outflow from business activities 78,819,920 19,163,996
Cash flow generated by business operation, net -77,638,656 -17,550,300
II. Cash flow generated by investing
Cash received from investment retrieving
Cash received as investment profit 526,558,273 265,909,173
Net cash retrieved from disposal of fixed assets, intangible assets,
294
and other long-term assets
39
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
Net cash received from disposal of subsidiaries or other operational
468,000,000 15,000,000
units
Other investment-related cash received 6,317,040
Sub-total of cash inflow due to investment activities 994,558,567 287,226,213
Cash paid for construction of fixed assets, intangible assets and
471,676 14,240,016
other long-term assets
Cash paid as investment 114,778,929 313,112,426
Net cash received from subsidiaries and other operational units 39,001,200
Other cash paid for investment activities
Sub-total of cash outflow due to investment activities 115,250,605 366,353,642
Net cash flow generated by investment 879,307,962 -79,127,429
III. Cash flow generated by financing
Cash received as investment
Cash received as loans 3,369,164,069 1,747,853,336
Cash received from bond placing
Other financing-related cash received
Subtotal of cash inflow from financing activities 3,369,164,069 1,747,853,336
Cash to repay debts 3,079,164,069 405,158,284
Cash paid as dividend, profit, or interests 667,937,522 315,302,985
Other cash paid for financing activities 409,586,399 954,506,592
Subtotal of cash outflow due to financing activities 4,156,687,990 1,674,967,861
Net cash flow generated by financing -787,523,921 72,885,475
IV. Influence of exchange rate alternation on cash and cash
-81,486 2,232,963
equivalents
V. Net increase of cash and cash equivalents 14,063,899 -21,559,291
Plus: Balance of cash and cash equivalents at the beginning of term 129,337,516 139,915,851
VI. Balance of cash and cash equivalents at the end of term 143,401,415 118,356,560
Legal Representative：Zeng Nan CFO：Luo Youming Manager of the financial department：Zhang Guoming
40
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
7. Statement of Change in Owners’ Equity (Consolidated)
Prepared by CSG Holding Co., Ltd.
Amount of the Current Term
Unit: RMB
Amount of the Current Term
Owners’ Equity Attributable to the Parent Company Minor
Items shareholders’ Total of
Capital paid in Less: Shares
Capital Special Surplus Common risk Retained
(or share Special in Others Total of owners’ owners’ equity
reserves reserves reserves provision profit
capital) reserves stock equity
I. Balance at the end of last year 2,075,335,560 1,391,366,888 14,503,860 765,048,720 3,803,574,842 -1,935,731 353,018,443 8,400,912,582
Plus: Change of accounting policy
Correcting of previous errors
Others
II. Balance at the beginning of
2,075,335,560 1,391,366,888 14,503,860 765,048,720 3,803,574,842 -1,935,731 353,018,443 8,400,912,582
current year
III. Amount of change in current
term 2,817,560 831,740 -33,390,229 990,305 -123,208,627 -151,959,251
(“-“ for decrease)
(I) Net profit 589,210,439 27,986,509 617,196,948
(II) Other misc. income 10,115,238 990,305 -1,408 11,104,135
Total of (I) and (II) 10,115,238 589,210,439 990,305 27,985,101 628,301,083
(III)Investment
or decreasing of capital by 21,136,000 21,136,000
owners
1. Capital inputted by owners 21,136,000 21,136,000
2. Amount of shares paid and
accounted as owners’ equity
3. Others
41
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
(IV) Profit allotment -622,600,668 -56,362,791 -678,963,459
1. Providing of surplus reserves
2. Common risk provision
3. Allotment to the owners (or
-622,600,668 -56,362,791 -678,963,459
shareholders)
4. Others
(V) Internal transferring of owners’
equity
1.Capitalizing of capital reserves (or
to capital shares)
2.Capitalizing of surplus reserves
(or
to capital shares)
3. Making up losses by surplus
reserves
4. Others
(VI)Special reserves 831,740 831,740
1. Provided this year 1,503,887 1,503,887
2. Used this term -672,147 -672,147
(VII) Others -7,297,678 -115,966,937 -123,264,615
IV. Balance at the end of this term 2,075,335,560 1,394,184,448 15,335,600 765,048,720 3,770,184,613 -945,426 229,809,816 8,248,953,331
Amount of Last Year
Unit: RMB
Amount of Last Year
Owners’ Equity Attributable to the Parent Company Minor
Items shareholders’ Total of
Capital paid in Less: Shares
Capital Special Surplus Common risk Retained
(or share Special in Others Total of owners’ owners’ equity
reserves reserves reserves provision profit
capital) reserves stock equity
42
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
I. Balance at the end of last year 2,075,335,560 1,381,031,988 14,831,266 678,216,577 2,665,777,580 1,017,782 451,984,007 7,268,194,760
Plus: Retrospective adjustment
caused by merger of entities under
common control
Plus:Change of accounting policy
Correcting of previous errors
Others
II. Balance at the beginning of
2,075,335,560 1,381,031,988 14,831,266 678,216,577 2,665,777,580 1,017,782 451,984,007 7,268,194,760
current year
III. Amount of change in current
term 10,334,900 -327,406 86,832,143 1,137,797,262 -2,953,513 -98,965,564 1,132,717,822
(“-“ for decrease)
(I) Net profit 1,535,929,739 139,384,658 1,675,314,397
(II) Other misc. income 9,857,002 -2,953,513 6,903,489
Total of (I) and (II) 9,857,002 1,535,929,739 -2,953,513 139,384,658 1,682,217,886
(III)Investment or decreasing of
450,851 13,451,793 13,902,644
capital by owners
1. Capital inputted by owners 13,210,000 13,210,000
2. Amount of shares paid and
450,851 241,793 692,644
accounted as owners’equity
3. Others
(IV) Profit allotment 86,832,143 -398,132,477 -145,358,190 -456,658,524
1. Providing of surplus reserves 86,832,143 -86,832,143
2. Common risk provision
3. Allotment to the owners (or
-311,300,334 -145,358,190 -456,658,524
shareholders)
4. Others
(V) Internal transferring of owners’
equity
43
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
1.Capitalizing of capital reserves (or
to capital shares)
2.Capitalizing of surplus reserves
(or to capital shares)
3. Making up losses by surplus
reserves
4. Others
(VI) Special reserves -327,406 -21,009 -348,415
1. Provided this year 3,195,497 205,053 3,400,550
2. Used this term -3,522,903 -226,062 -3,748,965
(VII) Others 27,047 -106,422,816 -106,395,769
IV. Balance at the end of this term 2,075,335,560 1,391,366,888 14,503,860 765,048,720 3,803,574,842 -1,935,731 353,018,443 8,400,912,582
Legal Representative：Zeng Nan CFO：Luo Youming Manager of the financial department：Zhang Guoming
44
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
8. Statement of Change in Owners’ Equity (Parent Co.)
Prepared by CSG Holding Co., Ltd.
Amount of the Current Term
Unit: RMB
Amount of the Current Term
Less:
Items Capital paid in Common Total of
Capital Shares Special Surplus Retained
(or share risk owners’
reserves in reserves reserves profit
capital) provision equity
stock
I. Balance at the end of last
2,075,335,560 1,434,441,128 779,594,080 1,619,838,105 5,909,208,873
year
Add: Change of accounting
policy
Correcting of previous errors
Other
II. Balance at the beginning
2,075,335,560 1,434,441,128 779,594,080 1,619,838,105 5,909,208,873
of current year
III. Changed in the current
7,921,837 61,556,623 69,478,460
year
（I）Net profit 684,157,291 684,157,291
（II）Other misc. income 7,558,785 7,558,785
Total of (I) and (II) 7,558,785 684,157,291 691,716,076
(III) Investment or decreasing
of capital by owners
1. Capital inputted by owners
2．Amount of shares
paid and accounted as
owners‘ equity
3. Other
（IV）Profit allotment -622,600,668 -622,600,668
1.Providing of surplus
reserves
2.Providing of common risk
provisions
3．Allotment to the owners (or
-622,600,668 -622,600,668
shareholders)
4．Other
(V) Internal transferring of
owners‘ equity
1. Capitalizing of capital
reserves (or to capital shares)
2. Capitalizing of surplus
reserves (or to capital shares)
3．Making up losses by
surplus reserves.
4. Other
(VI) Special reserves
1. Provided this year
2．Used this term
(VII) Other 363,052 363,052
IV. Balance at the end of this
2,075,335,560 1,442,362,965 779,594,080 1,681,394,728 5,978,687,333
term
45
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
Amount of Last Year
Uniit: RMB
Amount of last year
Less: Commo
Items Capital paid Total of
Capital Shares Special Surplus n risk Retained owners’
in (or share
reserves in reserves reserves provisio profit equity
capital)
stock n
I.Balance at the end of last
2,075,335,560 1,426,899,328 692,761,937 1,149,649,152 5,344,645,977
year
Add: Change of accounting
policy
Correcting of previous errors
Other
II.Balance at the beginning of
2,075,335,560 1,426,899,328 692,761,937 1,149,649,152 5,344,645,977
current year
III.Changed in the current
7,541,800 86,832,143 470,188,953 564,562,896
year
（I） Net profit 868,321,430 868,321,430
（II）Other misc.income 7,365,795 7,365,795
Total of (I) and (II) 7,365,795 868,321,430 875,687,225
(III) Investment or decreasing
176,005 176,005
of capital by owners
1. Capital inputted by owners
2．Amount of shares
paid and accounted as 176,005 176,005
owners‘ equity
3. Other
（IV）Profit allotment 86,832,143 -398,132,477 -311,300,334
1.Providing of surplus
86,832,143 -86,832,143
reserves
2.Providing of common risk
provisions
3．Allotment to the owners (or
-311,300,334 -311,300,334
shareholders)
4．Other
(V) Internal transferring of
owners‘ equity
1. Capitalizing of capital
reserves (or to capital shares)
2. Capitalizing of surplus
reserves (or to capital shares)
3．Making up losses by
surplus reserves.
4. Other
(VI) Special reserves
1. Provided this year
2．Used this term
（VII）Other
IV. Balance at the end of this
2,075,335,560 1,434,441,128 779,594,080 1,619,838,105 5,909,208,873
term
Legal Representative：Zeng Nan CFO：Luo Youming Manager of the financial department：Zhang Guoming
46
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
III. Basic Information of the Company
CSG Holding Co Ltd (the “Company”) was incorporated in September 1984 in Shenzhen, the People’s Republic of China (the
“PRC”), previously known as China South Glass Company, as a joint venture enterprise by Hong Kong China merchants shipping
Co., LTD (香港招商局轮船股份有限公司)、Shenzhen building materials industry corporation(深圳建筑材料工业集团公司)、China
North Industries Corporation (中国北方工业深圳公司) and Guangdong international trust and investment corporation (广东国际信
托投资公司), with a registered capital of US dollar 500,000. In October 1991, as approved by the Shenzhen municipal government
with document SFBF (1991) 828, China South Glass Company was reorganized as joint stock limited company, the registered capital
was RMB71,232,550, with nominal value of RMB1 per share.
As approved by People’s Bank of China Shenzhen Branch with document No. SRYFZ (1991)087 and SRYFZ (1992) 010, the
Company issued, by public offering, the domestic shares (“A shares”) of 20,300,000 shares and domestically listed foreign shares (“B
shares”) of 16,000,000, in October 1991 and January 1992, respectively. Both shares were listed in Shenzhen Stock Exchange in
February 1992. The registered capital of the Company increased to RMB107,532,550.
As approved by China Securities Regulatory Committee with document (1995) No.16, State Planning Committee with document
JWZ (1994) No. 1748 and State Administrative of Foreign Exchange with document HZF (95) No. 191, the Company issued USD 45
million convertible bonds on Swiss between June and July 1995, of which convertible bonds amounting to USD 44 million had been
converted into 75,411,268 B shares, the remaining balances were repaid upon maturity.
The Company issued new capital of RMB832,519,306 during the period from 1993 to 2005 by the means of warrants, bonus issue
and capitalisation of capital reserve.
As approved by China Security Regulatory Committee with document ZJFX (2007) No. 231, the Company issued, by private
placement, 172,500,000 A shares during the period from 20 September to 27 September 2007, at subscription price of RMB8 per
share. The registered capital of the Company increased to 1,187,963,124 upon the completion of the placement.
According to the Company’s restricted A share stock incentive scheme, the Company granted 49,140,000 A shares to employees
through a non-public placement on 16 June 2008, at price of RMB8.58 per share. The registered capital of the Company increased to
1,237,103,124 upon the completion of the issuance.
As 2008 performance of the Group failed to meet the vesting conditions of the A share stock incentive scheme and certain employees
left the Group, the Company repurchased and cancelled 13,365,000 A shares in 2009. The company's registered capital was reduced
to 1,223,738,124.
As some certain employees left the Group in 2009, the Company repurchased and cancelled 1,042,500 A shares on January 2010. The
company’s registered capital was reduced to 1,222,695,624.
Pursuant to the resolutions of shareholder’s meeting on 20 April 2010, the Company paid scrip dividend of 855,886,936 shares, on
the basis of total equity 1,22,695,624 issuing 7 shares for each 10 shares by capitalisation of capital surplus. The Company’s
registered capital was increased to 2,078,582,560 thereafter.
As certain employees left the Group in 2010, the Company repurchased and cancelled 1,861,500 A shares in July 2010. The
company's registered capital was reduced to 2,076,721,060.
As certain employees left the Group in 2011, the Company repurchased and cancelled 578,000 A shares in January 2011 and 306,000
A shares in October. The company’s registered capital was reduced to 2,075,837,060.
As certain employees left the Group in 2012, the Company repurchased and cancelled 501,500 A shares in June 2012. The company’s
registered capital was reduced to 2,075,335,560.
The Company and its subsidiaries (collectively referred to the “Group”) are mainly engaged in the manufacturing and selling of
floating glass, specialized glass, engineering glass, energy saving glass, silicon related materials and solar panels.
The financial statements were authorized for issue by the board of directors on 1 August 2014.
IV. Principal accounting policies, accounting estimates and early errors
1. Basis for the preparation of financial statements
The financial statements have been prepared in accordance with the Basic Standards and 38 Specific Standards of the Accounting
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CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
standards for Business Enterprises issued by the Ministry of Finance on 15 February 2006, and the Application Guidance for
Accounting Standards for Business Enterprises, Interpretation of Accounting Standards for Business Enterprises and other relevant
regulations issued thereafter (hereafter referred to as “the Accounting Standards for Business enterprises” or “CAS”), and
“Information Disclosure Rule No. 15 for Companies with Public Traded Securities - Financial Reporting General Provision”(2010
Amendment) issued by China Security Regulatory Commission.
As at 30 June 2014, the Group had net current liabilities of about RMB 2.17 billion and committed capital expenditure of RMB 721
million. The directors of the Company has assessed the following facts and conditions: a) the Group has been able to generate
positive operating cash flows in prior years and expect to do so during the coming year; b) the Group has maintained good
relationship with banks so the Group has been able to successfully get adequate financing credit; As at 30 June 2013, the Group had
unutilised internal banking facilities of approximately RMB 9.6 billion, including the long-term banking facilities of approximately
RMB 2.8 billion. In addition, the Group also has other available financing channels, such as short-term financing bills. The directors
are of view that the above banking facilities can meet the funding requirements of the Group’s debt servicing and capital commitment.
Accordingly, the directors of the Company had adopted the going concern basis in the preparation of this financial statement of the
Company and the Group.
2. Statement of compliance with the Accounting Standards for Business Enterprises
The financial statements of the Company for the first half year of 2014 truly and completely present the financial position as of 30
June 2014 and the operating results, cash flows and other information for January to June of 2014 of the Group and the Company in
compliance with the Accounting Standards for Business Enterprises.
3. Accounting period
The Company’s accounting year starts on 1 January and ends on 31 December.
4. Recording currency
The recording currency is Renminbi (RMB).
5. Accounting process method of Business combinations under common and different controlling.
(1)Business combinations involving entities under common control
The assets and liabilities that the combining party obtains in a business combination shall be measured on the basis of their carrying
amount in the combined party. As for the balance between the carrying amount of the net assets obtained by the combining party and the
carrying amount of the consideration paid by it, the additional paid-in capital shall be adjusted. If the additional paid-in capital is not
sufficient to be offset, the retained earnings shall be adjusted. Costs directly attributable to business combination are recorded into the
profits and losses once incurred. Transaction costs attributed to issue equity securities or debt securities for business combination are
recorded into initial recognition amounts of equity securities or debt securities.
(2) Business combinations involving entities not under common control
The cost of combination and identifiable net assets obtained by the acquirer in a business combination are measured at the fair value at
the acquisition date. The excess of the cost of acquisition over the Group’s share of the fair value of the identifiable net assets acquired is
recorded as goodwill. If the cost of acquisition is less than the Group’s share of fair value of the net assets of the subsidiary acquired, the
difference is recognised directly in the income statement. Costs directly attributable to business combination are included in the profits
and losses once incurred. Transaction costs attributed to issue equity securities or debt securities for business combination are recorded
into initial recognition amounts of equity securities or debt securities.
6. Basis of preparation of consolidated financial statements
(1) Basis of preparation of consolidated financial statements
The scope of consolidation includes the Company and all of its subsidiaries.
Subsidiaries are fully consolidated from the date on which control is transferred to the Group and are de-consolidated from the date that
control ceases. For the subsidiary being acquired under common control, it is included in the scope of consolidation from the date it
first came under the common control with the Company, the net profit or loss of such subsidiary before the acquisition date should
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CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
also be separately disclosed in the consolidated income statement.
Accounting policies of subsidiaries have been adjusted where necessary to ensure consistency with the policies adopted by the Group.
For subsidiaries acquired in a business combination involving entities not under common control, the individual financial statements of
the subsidiaries are adjusted based on the fair value of the identifiable assets and liabilities at the acquisition date.
All significant inter-group balances, transactions and unrealized profits are eliminated in the consolidated financial statements. The
portion of equity and net profits or losses of a subsidiary not belonging to the Company is recognized as minority interests and separately
presented in equity and net profits respectively.
If the Company do not loss control of the subsidiary, the differences between any consideration paid and the relevant share acquired of
the carrying value of net assets of the subsidiary at the transaction date are recorded in capitalization reserve for purchase from minority
interests. If the capital surplus is not sufficient to be deducted, retained earnings should be adjusted.
In consolidated financial statements, the remaining equity shall be revalued on the basis of its fair value on the date on which control was
lost. The sum of the consideration received on the disposal of equities and the fair value of the remaining equities less the net assets of
the subsidiary company calculated on the basis of the original ownership percentage and consecutively from the purchase date shall be
accounted for as investment income for the period in which control was lost. Other overall gains relevant to the equity investment in the
subsidiary company originally owned shall be included in investment income for the period in which control was lost. The enterprise
shall disclose in a note the fair value of the remaining equity on the date on which control was lost and the amount of any relevant gain or
loss recalculated on a fair value basis.
7. Confirmation standard of cash and cash equivalent
Cash and cash equivalents comprise cash in hand, deposits held at call with bank and short-term and highly liquid investments that are
readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.
8. Translating of foreign currency operations and foreign currency report form
(1)Foreign currency transactions
Foreign currency transactions are translated into RMB using the exchange rates prevailing at the dates of the transactions.
At the balance sheet date, monetary items denominated in foreign currency are translated into RMB using the spot exchange rate on
the balance sheet date. Exchange differences arising from these translations are recognised in profit or loss for the current period,
except for those attributable to foreign currency borrowings that have been taken out specifically for the acquisition, construction or
production of qualifying assets, which are capitalised as part of the cost of those assets. Non-monetary items denominated in foreign
currency that are measured in terms of historical cost are translated at the balance sheet date using the spot exchange rate at the date
of the transaction. The effect of exchange rate changes on cash is presented separately in the cash flow statement.
(2) Translation of foreign currency financial statements
The asset and liability items in the balance sheets for foreign operation are translated at the spot exchange rate on the balance sheet
date. Among the owner’s equity items, the items other than “undistributed profits” are translated at the spot exchange rate of the
transaction date. The income and expense items in the income statements of overseas businesses are translated at the spot exchange
rate of the transaction date. The differences arising from the above translation are presented separately in the owner’s equities. The
cash flows of overseas businesses are translated at the spot exchange rate on the date of the cash flows. The effect of exchange rate
changes on cash is presented separately in the cash flow statement.
9. Financial instruments
(1) Categorizing of financial instruments
Classification of financial assets
Financial assets are classified into the following categories at initial recognition: at fair value through profit or loss, loans and receivables
and financial assets available-for-sale. The classification of financial assets depends on the Group’s intention and ability to hold the
financial assets. The Group has no financial assets at fair value through profit or loss and financial assets held to maturity.
Receivables
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CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
Receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Such assets
includes notes receivable , accounts receivable and other receivable
Available for sale financial assets
Available-for-sale financial assets are non-derivative financial assets that are either designated in this category or not classified in any
of the other categories at initial recognition. Available-for-sale financial assets are included in other current assets on the balance
sheet if management intends to dispose of them within 12 months after the balance sheet date.
Classification of financial liabilities
Financial liabilities are classified into the following categories at initial recognition: the financial liabilities at fair value through
profit or loss and other financial liabilities. The financial liabilities in the Group mainly comprise of other financial liabilities,
including payables, borrowings and corporate bonds.
Payables comprise accounts payable and other payables, which are recognised initially at fair value and measured subsequently at
amortised cost using the effective interest method
Borrowings are recognised initially at fair value, net of transaction costs incurred, and subsequently carried at amortised costs using
the effective interest method.
Other financial liabilities within one year (including one year) is presented as current liabilities, while non-current financial liabilities
due with one year (including one year) is reclassified as non-current liabilities due within one year. Others are presented as
non-current liabilities.
(2) Recognition basis and measurement of financial instruments
Financial assets are recognised at fair value on the balance sheet when the Group becomes a party to the contractual provisions of the
financial instrument. Transaction costs of financial assets carried at the fair value through profit or loss are expensed in the income
statement; Transaction costs of other financial assets are included in financial assets at initial recognition.
Available-for-sale financial assets are subsequently measured at fair value. Investments in equity instruments are measured at cost
when they do not have a quoted market price in an active market and whose fair value cannot be reliably measured. Loans and
receivables are measured at amortised cost using the effective interest method.
A gain or loss arising from change in fair value of an available-for-sale financial asset is recognised directly in equity, except for
impairment losses and foreign exchange gains and losses arising from the translation of monetary financial assets. When such
financial asset is derecognised, the cumulative gain or loss previously recognised in equity is recognised in income statement. Interest
on available for sale debt instrument, calculated using effective interest method, and cash dividends declared by the investee on
available-for-sale equity instruments are recognised as investment income in income statement.
(3) Derecognition of financial assets
Financial assets are derecognized when: i) the contractual rights to receive the cash flows from the financial assets have expired; or ii)
all substantial risks and rewards of ownership of the financial assets have been transferred; or iii) the control over the financial asset
has been waived even if the Group does not transfer or retain nearly all of the risks and rewards relating to the ownership of a
financial asset.
On derecognition of a financial asset, the difference between the carrying amount and the aggregate of consideration received and the
accumulative amount of changes of fair value originally recorded in the owner’s equity is recognised in the income statement.
(4) Derecognition of financial liabilities
A financial liability (or a part of financial liability) is derecognised when and only when the obligation specified in the contract is
discharged or cancelled. The difference between the carrying amount of a financial liability (or a part of financial liability)
extinguished and the consideration paid is recognised in the income statement.
(5) Determination of the fair value of the financial instruments
The fair value of a financial instrument that is traded in an active market is determined at the quoted price in the active market. The fair
value of a financial instrument for which the market is not active is determined by using a valuation technique. Valuation techniques
include using prices of recent market transactions between knowledgeable, willing parties, reference to the current fair value of another
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CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
financial asset that is substantially the same with this instrument, and discounted cash flow analysis. When a valuation technique is used
to establish the fair value of a financial instrument, management uses observable market data as much as possible and relies as little as
possible on the Group-specific inputs.
(6) Impairment of financial assets
The Group assesses the carrying amount of financial assets at each balance sheet date. If there is objective evidence that the financial
asset is impaired, the Group shall determine the amount of any impairment loss accounts.
Objective evidence which indicates the occurrence of impairment for available-for-sale equity instruments includes significant or
non-temporary decrease of fair value of equity instruments investment. The Group conducts individual inspection on each
available-for-sale equity instruments investment at balance sheet date, if the fair value of the available-for-sale equity instrument is
less than its initial investment cost for more than 50% (including 50%) or less than its initial investment cost continually for more
than 1 year, that means impairment incurred; if the fair value of the available-for-sale equity instrument is less than its initial
investment cost for more than 20% (including 20%) but has not reached 50%, the Group will comprehensively consider other factors
such as price volatility to determine whether the equity instrument investment has been impaired.
If an impairment loss on a financial asset carried at amortized cost has been incurred, the amount of loss is measured at the difference
between the asset’s carrying amount and the present value of estimated future cash flows (excluding future credit losses that have not
been incurred). If there is objective evidence that the value of the financial asset recovered and the recovery can be related
objectively to an event occurring after the impairment was recognized, the previously recognized impairment loss is reversed and the
amount of reversal is recognized in income statement.
If the impairment for available-for-sale financial assets occurs, the cumulative loss arising from the decline in fair value that had been
recognized directly in equity is removed from equity and recognized as impairment loss. For an available for sale debt instrument, if
there is objective evidence that the value of the financial asset recovered and the recovery can be related objectively to an event
occurring after the impairment was recognized, the previously recognized impairment loss is reversed and the amount of reversal is
recognized in income statement. For an available for sale equity instrument, if there is objective evidence that the value recovered
and the recovery can be objectively related to an event occurring after the impairment loss recognized, the previously recognized
impairment loss is reversed and directly recognized in equity.
10. Recognition standard impairment and receivables
Receivables comprise accounts receivable and other receivables. Accounts receivable arising from sale of goods or rendering of
services are initially recognized at fair value of the contractual payments from the buyer.
(1) Bad debt provision on receivable accounts with major amount individually
The basis or amount for individually significant receivables
Basis of recognition or standard amount of Receivables that are
individually significant is individually greater than 20 million.
Receivables that are individually significant are subject to
separate impairment assessment. A provision for impairment
of the receivable is recognized if there is objective evidence
Basis of bad debt provision
that the Group will not be able to collect the full amounts
according to the original terms.
(2) Receivables that are provided for provision on a basis of group
Name of the portfolio Basis of bad debt provision Basis of recognition for groups
according to percentage of Receivables from third parties not impaired after separate
Portfolio 1
balance method assessment
according to percentage of
Portfolio 2 Receivables from related parties
balance method
Accounts on age basis in the portfolio:
□Applicable √Non-applicable
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CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
Accounts on percentage basis in the portfolio:
√Applicable □Non-applicable
Percentage of provision for Percentage of provision for other
Name of the portfolio
accounts receivable(%) receivables(%)
Portfolio 1 2% 2%
Portfolio 2 0% 0%
Accounts on other basis in the portfolio:
□Applicable √Non-applicable
(3) The method of provision for impairment of receivables that are individually significant
A provision for impairment of the receivable is recognized if there is objective
Reason for providing bad debt individually: evidence that the Group will not be able to collect the full amounts according to the
original terms.
The provision for impairment of the receivable is established at the difference
Basis of bad debt provision: between the carrying amount of the receivable and the present value of estimated
future cash flows.
11. Inventories
(1) Inventory classification
Inventories include manufacturing sector, presented at the lower of cost and net realisable value.
(2) Pricing of inventory to be delivered
Pricing method: weighted average
Manufacturing sector inventories include raw materials, work in progress, finished goods and turnover materials. Cost is determined
using the weighted average method. The cost of finished goods and work in progress comprises raw materials, direct labour and an
allocation of all production overhead expenditures incurred based on normal operating capacity.
(3) The determination of net realisable value and the method of provision for impairment of inventories
Provisions for declines in the value of inventories are determined at the carrying value of the inventories net of their net realizable
value. Net realizable value is determined based on the estimated selling price in the ordinary course of business, less the estimated
costs to completion and estimated costs necessary to make the sale and relevant taxes.
(4) Inventory system
Inventory system: Perpetual inventory
(5) Low-value consumption goods and package material amortisation method
Low-value consumption goods
Amortization method: one-off amortization method
Package materials
Amortization method: one-off amortization method
12. Long-term equity investments
(1) Recognition of investment costs
For long-term equity investments acquired through a business combination: for long-term equity investments acquired through a
business combination involving enterprises under common control, the investment cost shall be the absorbing party’s share of the
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CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
carrying amount of owners’ equity of the party being absorbed at the combination date; for long-term equity investment acquired
through a business combination involving enterprises not under common control, the investment cost shall be the combination cost.
For long-term equity investments acquired not through a business combination: for long-term equity investment acquired by payment
in cash, the initial investment cost shall be the purchase price actually paid; for long-term equity investments acquired by issuing
equity securities, the initial investment cost shall be the fair value of the equity securities issued. If the shares granted to the employee
of subsidiaries are settled in equity instruments of the Company, the expenses, being determined at the fair value of the equity
instruments on grant date, related to the employees’ service in current period are recognized as part of the cost of investments in
subsidiaries.
(2) Subsequent measurement and recognition of related profit and loss
For long-term equity investments accounted for using the cost method, they are measured at the initial investment costs, and cash
dividends or profit distribution declared by the investees are recognized as investment income in profit or loss. For long-term equity
investments accounted for using the equity method, where the initial investment cost of a long-term equity investment exceeds the
Group’s share of the fair value of the investee’s identifiable net assets at the acquisition date, the long-term equity investment is
measured at the initial investment cost; where the initial investment cost is less than the Group’s share of the fair value of the
investee’s identifiable net assets at the acquisition date, the difference is included in profit or loss and the cost of the long-term equity
investment is adjusted upwards accordingly. For long-term equity investments accounted for using the equity method, the Group
recognises the investment income according to its share of net profit or loss of the investee. The Group discontinues recognising its
share of net losses of an investee after the carrying amount of the long-term equity investment together with any long-term interests
that, in substance, form part of the investor’s net investment in the investee are reduced to zero. However, if the Group has
obligations for additional losses and the criteria with respect to recognition of provisions under the accounting standards on
contingencies are satisfied, the Group continues recognising the investment losses and the provisions. For changes in owners’ equity
of the investee other than those arising from its net profit or loss, the Group records its proportionate share directly into capital
surplus, provided that the Group’s proportion of shareholding in the investee remains unchanged. The carrying amount of the
investment is reduced by the Group’s share of the profit distribution or cash dividends declared by an investee. The unrealised profits
or losses arising from the intra-group transactions amongst the Group and its investees are eliminated in proportion to the Group’s
equity interest in the investees, and then based on which the investment gains or losses are recognised. For the loss on the intra-group
transaction amongst the Group and its investees attributable to asset impairment, any unrealised loss is not eliminated.
(3) Basis for determining existence of control, jointly control or significant influence over investees
Control is the power to govern the financial and operating policies of the investee so as to obtain benefits from its operating activities.
In determining whether the Company is able to exercise control over the investee, the effect of potential voting rights over the
investee is considered, such as convertible debts and warrants currently exercisable, etc. Joint control is the contractually agreed
sharing of control over an economic activity, and exists only when the strategic financial and operating decisions relating to the
activity require the unanimous consent of the parties sharing control. Significant influence is the power to participate in the financial
and operating policy decisions of the investee, but is not control or joint control over those policies.
(4) Impairment test and providing of impairment provisions
The carrying amount of long-term equity investments in subsidiaries and associates is reduced to the recoverable amount when the
recoverable amount is less than the carrying amount. Once the impairment loss is recognized, it is not allowed to be reversed for any
value recovered in the subsequent periods.
13. Fixed assets
(1) Recognition of fixed assets
Fixed assets comprise buildings, machinery and equipment, motor vehicles, computer and electronic equipment and office equipment.
Fixed asset is recognized when it is probable that the economic benefits associated with the fixed asset will flow to the Group and its
cost can be reliably measured. Fixed assets purchased or constructed by the Group are initially measured at cost at the time of
acquisition. Subsequent expenditures incurred for a fixed asset are included in the cost of the fixed asset when it is probable that the
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CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
economic benefits associated with the fixed asset will flow to the Group and its cost can be reliably measured. The carrying amount
of those parts that are replaced is derecognized and all the other subsequent expenditures are recognized in income statement when
they are incurred.
(2) Depreciation of different fixed assets
Fixed assets are depreciated using the straight-line method to allocate the cost of the assets to their estimated residual values over
their estimated useful lives. For the fixed assets being provided for impairment loss, the related depreciation charge is prospectively
determined based upon the adjusted carrying amounts over their remaining useful lives.
The estimated useful life of fixed assets, net salvage value rate and annual depreciation rates are as follows:
Categories Depreciation age (year) Salvage Value Rate (%) Annual depreciation rate (%)
Houses & buildings 20-35 5% 2.71%~4.75%
Equipment & machinery 8-15 5% 6.33%~11.88%
Transportation equipment 5-8 0% 12.5%~20%
(3) Impairment test and providing of impairment provisions on fixed assets
The carrying amount of fix assets is reduced to the recoverable amount when the recoverable amount is less than the carrying
amount.
(4) Other remarks
A fixed asset is derecognized on disposal or when no future economic benefits are expected from its use or disposal. The amount of
proceeds on sale, transfer, retirement or damage of a fixed asset net of its carrying amount and related taxes and expenses is
recognized in income statement.
14 Construction in process
(1) Categories of construction in process
Construction in progress is measured at actual cost. Actual cost comprises construction costs, Installation costs, borrowing costs that
are eligible for capitalization incurred before the assets are ready for their intended use and other costs necessary to bring the fixed
assets ready for their intended use.
(2) Standard and timing for transferring of construction in process to fixed assets
Construction in progress is transferred to fixed assets when the assets are ready for their intended use and are depreciate from the
next month.
(3) Impairment test and providing of impairment provisions on construction-in-process
The carrying amount of construction in progress is reduced to the recoverable amount when the recoverable amount is less than the
carrying amount.
15. Borrowing costs
(1) Principle of the recognition of capitalized borrowing costs
The borrowing costs that are directly attributable to the acquisition and construction of a fixed asset that needs a substantially long
period of time of acquisition and construction for its intended use commence to be capitalized. The borrowing costs recorded as part
of the cost of the asset when expenditures for the asset and borrowing costs have been incurred, and the activities relating to the
acquisition and construction that are necessary to prepare the asset for its intended use have commenced.
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CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
(2) Capitalizing period of borrowing costs
The capitalization of borrowing costs ceases when the asset under acquisition or construction becomes ready for its intended use, the
borrowing costs incurred thereafter are recognized in income statement.
(3) Temporarily suspension of capitalizing period
Capitalization of borrowing costs is suspended when the acquisition or construction of a fixed asset is interrupted abnormally and the
interruption lasts for more than 3 months, until the acquisition or construction is resumed.
(4) Calculating of borrowing costs capitalizing
For the specific borrowings obtained for the acquisition or construction of a fixed asset qualifying for capitalization, the amount of
borrowing costs eligible for capitalization is determined by deducting any interest income earned from depositing the unused specific
borrowings in the banks or any investment income arising on the temporary investment of those borrowings during the capitalization
period.
For the general borrowings obtained for the acquisition or construction of a fixed asset qualifying for capitalization, the amount of
borrowing costs eligible for capitalization is determined by applying the weighted average effective interest rate of general
borrowings, to the weighted average of the excess amount of cumulative expenditures on the asset over the amount of specific
borrowings. The effective interest rate is the rate at which the estimated future cash flows during the period of expected duration of
the borrowings or applicable shorter period are discounted to the initial amount of the borrowings.
16. Intangible assets
(1) Pricing of intangible assets
Intangible assets including land use rights and, patents and exploitation rights, intangible assets are measured at cost.
(2) Estimation of service life of intangible assets with limited useful life
(a) Land use rights
Land use rights are amortized on the straight-line basis over the period of the land use rights from 30 to 70 years. If it is impracticable
to allocate the amount paid for the purchase of land use rights and buildings between the land use rights and the buildings on a
reasonable basis, the entire amount is accounted for as fixed assets.
(b) Patents
Patents are amortized on a straight-line basis over periods as stipulated by the contracts.
(c) Exploitation rights
The estimated useful life and amortization method for an intangible asset with an indefinite useful life is reviewed, and adjusted if
appropriate at each financial year-end.
(d)Periodical review of useful life and amortisation method
The estimated useful life and amortisation method for an intangible asset with an indefinite useful life is reviewed, and adjusted if
appropriate at each financial year-end.
(3) Providing of intangible asset impairment provisions
The carrying amount of intangible asset is reduced to the recoverable amount when the recoverable amount is less than the carrying
amount.
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CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
(4) Dividing of research stage and development stage of internal R&D projects
The expenditure on an internal research and development project is classified into expenditure on the research phase and expenditure
on the development phase based on its nature and whether there is material uncertainty that the research and development activities
can finally create an intangible asset.
(5) Accounting of internal R&D expenses
Expenditure on the research phase is recognized in profit or loss in the period in which it is incurred. Expenditure on the development
phase is recognized as an intangible asset only if all of the following standards are met:
it is technically feasible to complete the intangible asset so that it will be available for use;
management intends to complete the intangible asset and use or sell it;
it can be demonstrated how the intangible asset will generate economic benefits;
adequate technical, financial and other resources to complete the development and the ability to use or sell the intangible asset;
and
the expenditure attributable to the intangible asset during its development phase can be reliably measured.
Other development expenditures that do not meet the conditions above are recognized in income statement as incurred. Development
costs previously recognized as an expense are not recognized as an asset in a subsequent period. Capitalized expenditure on the
development phase is presented as development costs in the balance sheet and transferred to intangible assets at the date the asset is
ready for its intended use.
17. Long-term prepaid expenses
Long-term prepaid expenses represent prepayments that should be amortized over more than one year. Long-term prepaid expenses
are amortized on the straight-line basis over the expected beneficial period and are presented at cost net of accumulated amortization.
18. Provisions
(1) recognition of provisions
Provisions for restructuring, product warranties and onerous contracts are recognized when the Group has a present obligation, and it
is probable that an outflow of economic benefits will be required to settle the obligation, and the amount of the obligation can be
measured reliably. Provisions are not recognized for future operating losses.
(2) measure of provisions
Provisions are initially measured at the best estimate of the expenditure required to settle the related present obligation. Factors
surrounding a contingency such as the risks, uncertainties and the time value of money are taken into account as a whole in reaching
the best estimate of an estimated liability. Where the effect of the time value of money is material, the best estimate is determined by
discounting the related future cash outflows. The increase in the discounted amount of the estimated liability arising from passage
of time is recognized as interest expense.
On each balance sheet date, balances of provisions are reviewed and adjusted where necessary, to reflect the current best estimate.
19. Share-based Payment and equity instruments
(1) Category of Share-based Payment
Share-based payment is a transaction in which the entity received services from employee or other parties in exchange of equity
instruments of the entity, or settlement based on the price of the entity’s equity instruments. Share-based payment plan is be classified
56
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
as either equity-settled share-based payments or cash-settled share-based payments. The Group’s restricted A share incentive scheme
which is equity-settled share based payment to receive employee service by transferring equity instruments to employees in
subsidiaries is measured at fair value of the equity instruments granted on grant date. If subsequent information indicates that the
number of equity instruments expected to vest differs from previous estimate, the Group shall revise the estimate accordingly and adjust
the number of shares to actual exercised.
(2) Method for determination of equity instrument fair value
The fair value of equity instruments of subsidiaries is determined by the appraisal institutions.
(3) The basis of determining the number of equity instruments expected to be vest
On each balance sheet date during the vesting period, the Group revise its estimates of the number of equity instruments that are expected
to vest based on the latest employee turnover rate and other information.
20. Revenue
(1) Recognition time for sales of goods
The Group mainly sells flat and engineer glass and products related to solar energy. For domestic sales, the Group delivers the
products to a certain place specified in the contract. When the buyer takes over the goods, the Group recognizes revenue. For export
sales, the Group recognizes the revenue when it finished clearing goods for export and delivering the goods on board the vessel, or
when the goods are delivered to a certain place specified in the contract. For above sales, when the buyer takes over the goods, the
buyer has the right to sell the products, and should bear the risk of price fluctuation or goods damage.
(2) Recognition of income from using rights of transfer assets
Interest income is recognised on a time-proportion basis using the effective interest method.
(3) Recognition of income from service providing
Income from service providing is recognized when the Group finished providing the service.
21. Government grants
(1) Categories
Government grants are the monetary asset the Group receives from the government for free, including tax refund, government
subsidies, etc.
(2) Accounting policy
Grants from the government are recognized when there is a reasonable assurance that the grants will be received and the Group will
comply with all attached conditions. Government grants are measured at the amounts received or receivable. The non-monetary
government grant are measured at fair value, if the fair value cannot be reliably obtained, it is measured at nominal amount.
Government grants relating to assets are those granted by the government for the purchase of long-term assets. Government grants
relating to income are those other than the government grants relating to assets.
Government grants relating to assets are recognized as deferred income and are credited to the income statement on a straight-line basis
over the expected lives of the related assets. The government grants measured at nominal amount is credited to the income statement
directly.
Government grants relating to income, which is used to compensate the expenses/costs incurred in future, are recognized as deferred
57
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
income and then credited to the income statement over the period necessary to match them with the expenses that they are intended to
compensate. Government grants relating to income, which is used to compensate the expenses/costs incurred in the past, are credited to
the income statement directly.
22. Deferred tax asset and deferred tax liability
(1) Basis for recognition of Deferred tax asset
Deferred tax assets are calculated and recognized based on the differences arising between the tax base of assets and liabilities and their
carrying amount (temporary differences). Deferred tax assets are only recognized for deductible temporary differences, deductible losses
and tax credits to the extent that it is probable that taxable profit will be available in the future against which the deductible temporary
differences, deductible losses and tax credits can be utilized. When it is probable that the temporary differences arising from investments
in subsidiaries and associates will be reversed in the foreseeable future and that the taxable profit will be available in the future against
which the temporary differences can be utilized, the corresponding deferred tax assets are recognized.
(2) Basis for recognition of deferred income tax liabilities
Deferred tax liabilities are calculated and recognized based on the differences arising between the tax base of assets and liabilities and
their carrying amount (temporary differences). Deferred tax liabilities are recognized for temporary differences arising from investments
in subsidiaries, joint ventures and associates, except where the Group is able to control the timing of the reversal of the temporary
difference, and it is probable that the temporary difference will not reverse in the foreseeable future.
Deferred tax assets and liabilities are offset and presented on net basis when:
The deferred taxes are relate to the same taxable entity with same taxation authority, and;
That entity has a legally enforceable right to offset current tax assets against current tax liabilities.
23. Operating lease and finance lease
(1) Accounting of operating lease
Lease payments under an operating lease are recognised on a straight-line basis over the period of the lease.
24. Held-for-sale assets
(1) Recognition of held-for-sale assets
The conditions for a non-current asset or disposal group to be classified as held-for-sale are as follows: 1) The Group has determined
to dispose non-current assets or part of business; 2) The Group has signed an irrevocable transfer agreement with assignee; 3) The
sale should be completed, or expected to be so, within a year from the date of the classification.
(2) Accounting treatment of held-for-sale assets
Non-current assets or disposal groups (not including financial assets and deferred tax assets) that are classified as held for sale are
measured at the lower of carrying amount and fair value less costs to sell. The difference between fair value less costs to sell and
carrying amount should be presented as impairment loss.
A discontinued operation is a component of an entity that either has been disposed of or is classified as held for sale, which is single
part of operation and draw up financial statements.
25. Changes of major accounting policy and assumption
Is there any change of major accounting policy or assumption in the report period?
□ Yes √ No
See the following explanation:
Critical accounting assumptions
58
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
The Group continually evaluates the critical accounting estimates and key judgments applied based on historical experience and other
factors, including expectations of future events that are believed to be reasonable under the circumstances.
The critical accounting estimates and key assumptions that have a significant risk of causing a material adjustment to the carrying
amounts of assets and liabilities within the next financial year are outlined below:
(a)Corporate income tax
The Group is subject to income taxes in numerous jurisdictions. There are many transactions and events for which the ultimate tax
determination is uncertain during the ordinary course of business. Significant judgment is required from the Group in determining the
provision for income taxes in each of these jurisdictions. The Group recognizes income taxes in each jurisdiction based on estimates.
Where the final tax outcome of these matters is different from the amounts that were initially recorded, such differences will impact
the income tax and deferred tax provisions in the period in which such determination is made.
(b)Deferred tax
Estimates on deferred tax assets are based on estimates on amount of taxable income and applicable tax rate for every year. Change
of the future tax rate as well as the reversed time of temporary difference might have effects on tax expense (income) and the balance
of deferred tax assets or liabilities. Those estimates may also cause significant adjustment on deferred tax.
(c)Impairment of long-term assets (excluding goodwill)
Long-term assets at the balance sheet date should be subject to impairment testing if there are any indications of impairment. The
management determines whether the long-term assets impaired or not by evaluating and analysing following aspects: (1) whether the
event affecting assets impairment occurs; (2) whether the expected obtainable present value of future cash flows is lower than the
asset’s book value by continually using the assets or disposal; and (3) whether the assumptions used in expected obtainable present
value of future cash flows are appropriate.
The Company made various assumptions, including the future cash flows and discount rate related to non-current assets. If these
assumptions cannot be conformed, the recoverable amount should be modified, and the long-term assets may be impaired
accordingly.
(d)The useful life of fixed assets
The management estimates the useful life of fixed assets, based on historical experiences on using fixed assets that have similar
properties and functions. When there are differences between actually useful life and previously estimation, the management will
adjust estimation to useful life of fixed assets. The fixed assets would be written off or written down when fixed assets been disposed
or became redundant. There will be difference between the results of estimation and actual results next accounting period, so that
may have significant adjustments to fixed assets in balance sheet.
(1)Changes of major accounting policy
Is there any change of major accounting policy in the report period?
□ Yes √ No
(2)Changes of major accounting assumption
Is there any change of major accounting assumption in the report period?
□ Yes √ No
V. Taxation
1. Main categories and rates of taxes
Tax items Tax basis Tax rate
Taxable value added amount (Tax payable is
calculated using the taxable sales amount multiplied
Value added tax (“VAT”) 17%
by the effective tax rate less current period’s
deductible VAT input )
Business tax Taxable turnover 5%
Urban construction tax Total VAT, Business tax and GST 1%-7%
59
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
Enterprise income tax Taxable income 15%-25%
a certain proportion of the residual value of the
Building tax 1.2%
property
Resource tax Quantities of Silica sold RMB 3 per ton
2. Preferential tax and approving documents
Tianjin CSG Architectural Glass Co., Ltd. was recognized as a high and new tech enterprise in 2012, and obtained the Certificate of
High and New Tech Enterprise. The period of validity is three years. It applies to 15% tax rate three years since 2012.
Tianjin CSG Energy Conservation Glass Co., Ltd. was recognized as a high and new tech enterprise in 2012, and obtained the
Certificate of High and New Tech Enterprise. The period of validity is three years. It applies to 15% tax rate three years since 2012.
Dongguan CSG Architectural Glass Co., Ltd. was recognized as a high and new tech enterprise in 2013, and obtained the Certificate
of High and New Tech Enterprise. The period of validity is three years. It applies to 15% tax rate three years since 2013.
Sichuan CSG Energy Conservation Glass Co., Ltd. was being applied for preferential tax for Western Development, and corporate
income tax rate 15% was provisionally applied for calculation of corporate income tax during the report period.
Wujiang CSG East China Architectural Glass Co., Ltd. was recognized as a high and new tech enterprise in 2011, valid up to 2013.
The review of its high and new tech enterprise status was under processing. Corporate income tax rate 15% was provisionally applied
for calculation of corporate income tax during the report period.
Dongguan CSG Solar Glass Co., Ltd. was recognized as a high and new tech enterprise in 2011, valid up to 2013. The review of its
high and new tech enterprise status was under processing. Corporate income tax rate 15% was provisionally applied for calculation of
corporate income tax during the report period.
Yichang CSG Polysilicon Co., Ltd. was recognized as a high and new tech enterprise in 2011, valid up to 2013. The review of its
high and new tech enterprise status was under processing. Corporate income tax rate 15% was provisionally applied for calculation of
corporate income tax during the report period.
Dongguan CSG PV-tech Co., Ltd. was recognized as a high and new tech enterprise in 2013, and obtained the Certificate of High and
New Tech Enterprise. The period of validity is three years. It applies to 15% tax rate three years since 2013.
Hebei Panel Glass Co., Ltd. was recognized as a high and new tech enterprise in 2013, and obtained the Certificate of High and New
Tech Enterprise. The period of validity is three years. It applies to 15% tax rate three years since 2013.
3. Other statements
The Company has used the “exempt, credit, refund” method on goods exported and the refund rate is 5%-17%.
60
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
VI. Consolidating of entities and consolidated financial statements
1. Particulars of the subsidiaries
(1) Subsidiaries obtained through incorporation or investment
Unit: RMB
Balance of the
owners’ equity of
Amount for parent co. after
Owne
Balance of other deducting deducting of the
rship minor exceeding part of
Actual items actually Share Cons Minor
of Business Registered Voting shareholder’ minority
Full name of the subsidiary Reg. Add. Business Scope investment at formed net proportion olidat shareholders’
the property capital power % ed equity s equity in shareholders’ share
year end investment in the %
subsid the minor of loss over the
subsidiaries shareholder’ share of minority
iary
s equity shareholders in the
owners’ equity at
beginning of year
Development &
Chengdu, Manufacturi
Chengdu CSG Glass Co., Ltd. Direct 166,660,000 Production & sales 124,995,000 75% 75% YES 81,940,982
the PRC ng
of specialized glass
Sichuan CSG Energy Conservation Chengdu, Manufacturi YES
Direct 80,000,000 Processed glass 60,000,000 75% 75% 36,902,331
Glass Co., Ltd. the PRC ng
Tianjin CSG Architectural Glass Co., Tianjin, the Manufacturi YES
Direct 178,000,000 Processed glass 178,000,000 100% 100%
Ltd. PRC ng
Development & YES
Tianjin Energy Conservation Glass Tianjin, the Manufacturi Production & sales
Direct 128,000,000 128,000,000 100% 100%
Co., Ltd. PRC ng of energy-saving
specialized glass
Dongguan CSG Architectural Glass Dongguan, Manufacturi YES
Direct 240,000,000 Processed glass 240,000,000 170,000,000 100% 100%
Co., Ltd. the PRC ng
Dongguan, Manufacturi Production & sales YES
Dongguan CSG Solar Glass Co., Ltd. Direct 416,000,000 416,000,000 100% 100%
the PRC ng of solar glass
Yichang, the Manufacturi 1,467,980,000 Production & sale YES
Yichang CSG Silicon Co., Ltd. Direct of silicon related 766,390,000 100% 100%
PRC ng
materials
Wujiang CSG North-east Architectural Wujiang, the Manufacturi YES
Direct 320,000,000 Processed glass 320,000,000 100% 100%
Glass Co., Ltd. PRC ng
Production of solar YES
Dongguan, Manufacturi
Dongguan CSG PV-tech Co., Ltd. Direct 516,000,000 battery and 294,000,000 100% 100%
the PRC ng
applications
Yongqing, Manufacturi Production & sales YES
Hebei CSG Glass Co., Ltd. Direct USD 48,060,000 295,703,568 100% 100%
the PRC ng of specialized glass
61
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
Wujiang, the Manufacturi Production & sales YES
Wujiang CSG Glass Co., Ltd. Direct 465,040,000 465,040,000 100% 100%
PRC ng of specialized glass
China Southern Glass (Hong Kong) Trading and YES
Direct Hong Kong Trading HKD 86,440,000 68,616,072 100% 100%
Limited investment holding
Production & sales YES
Yongqing, Manufacturi
Hebei Panel Glass Co., Ltd. Direct 243,000,000 of ultrathin 243,000,000 100% 100%
the PRC ng
electronic glass
Development & YES
Xianning,the Manufacturi
Xianning CSG Glass Co Ltd Direct 235,000,000 Production & sales 245,280,000 100% 100%
PRC ng
of specialized glass
Xianning CSG Energy Conservation Xianning,the Manufacturi YES
Direct 165,000,000 Processed glass 123,750,000 75% 75% 51,066,837
Glass Co., Ltd. PRC ng
Development & YES
Qingyuan CSG Energy Saving New Qingyuan,th Manufacturi Production & sales
Direct 300,000,000 300,000,000 100% 100%
Materials Co.,Ltd e PRC ng of Nonmetallic
mineral products
Production and YES
Jiangyou CSG Mining Development Jiangyou, Manufacturi
Direct 40,000,000 sales of silica sand 40,000,000 100% 100%
Co., Ltd. the PRC ng
and its products
Other notes of subsidiaries by establishment or investment
i. The proportion of voting power is determined on the proportion of the Company’s directors to the total directors of the subsidiary.
a. Approved by the document [2013] No. 413 of Sichuan Industry and Commerce Bureaul, the Company's subsidiary, Chengdu CSG Glass Co., Ltd.was divided into two companies Chengdu
CSG Glass Co., Ltd. and Sichuan Energy Conservation Glass Co., Ltd. by the way of existence and division. The establishment date of Sichuan Energy Conservation Glass Co., Ltd. was January
6, 2014.
b. Approved by the document [2014] No. 5 of Xianning Industry and Commerce Bureaul, the Company's subsidiary, Xianning CSG Glass Co., Ltd., was divided into two companies Xianning
CSG Glass Co., Ltd. and Xianning Energy Conservation Glass Co., Ltd. by the way of existence and division. The establishment date of Xianning Energy Conservation Glass Co., Ltd. was March
18, 2014.
c. On December 25, 2013, the Company signed an agreement with Yichang Liyuan Technology Development Co., Ltd. (abbr. "Liyuan") to acquire 6.03% equity of Yichang CSG Polysilicon Co.,
Ltd. (abbr. " Yichang CSG Polysilicon ") held by Liyuan. The transfer procedure was completed on January 20, 2014.
d. On June 9, 2014, the Company's subsidiary, CSG (Hong Kong) Limited signed an agreement with Jinfeng Co., Ltd. (abbr. "Jinfeng") to acquire 25% equity of Xianning CSG Glass Co., Ltd.
(abbr. " Xianning CSG ") held by Jinfeng . The transfer procedure was completed on June 25, 2014.
Difference between the net book value of assets acquired and the acquisition cost analyzed as follows:
total Xianning CSG Yichang polysilicon
Cost of purchanse-cash paid 124,944,929 69,030,000 55,914,929
Book net asset book on the basis of new equity ratio calculation (117,284,199) (64,063,838) (53,220,361)
difference(Offset against capital reserve) 7,660,730 4,966,162 2,694,568
62
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
(2) Subsidiary acquired through business combination involving entites not under common control
Unit: RMB
Balance of the
Amount for owners’ equity of
Owne parent co. after
Balance of other deducting
rship deducting of the
Actual items actually Share Minor minor
of Business Registered Business Voting Consolidat shareholders’ shareholder’s exceeding part of
Full name of the subsidiary Reg. Add. investment at formed net proportion minority
the property capital Scope power % ed equity equity in the
year end investment in the % shareholders’ share of
subsid minor
subsidiaries loss over the share of
iary shareholder’s
minority shareholders
equity
in the owners’ equity
at beginning of year
China Southern Glass (Australia) Direct Australia Trading Trading of
AUD 500,000 2,903,200 51% 51% YES 2,569,445
Limited glass
Yichang Nanbo Photoelectric Glass Direct Yichang, the Manufactu Production &
Co., Ltd. PRC ring sales of
200,000,000 157,461,200 73.58% 66.70% YES 55,051,529
ultrathin
electronic glass
63
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
2. Change of consolidation range
Change of consolidation range:
√applicable □Not applicable
New entities included in the consolidation range in the report period compared with the same period of last year
a. Approved by the document [2013] No. 413 of Sichuan Industry and Commerce Bureau, the Company's subsidiary, Chengdu CSG
Glass Co., Ltd. was divided into two companies Chengdu CSG Glass Co., Ltd. and Sichuan Energy Conservation Glass Co., Ltd. by
the way of existence and division. The establishment date of Sichuan Energy Conservation Glass Co., Ltd. was January 6, 2014.
b. Approved by the document [2014] No. 5 of Xianning Industry and Commerce Bureau, the Company's subsidiary, Xianning CSG
Glass Co., Ltd., was divided into two companies Xianning CSG Glass Co., Ltd. and Xianning Energy Conservation Glass Co., Ltd. by
the way of existence and division. The establishment date of Xianning Energy Conservation Glass Co., Ltd. was March 18, 2014.
c. On 11 March 2014, the Company signed an agreement with third party, Truly Wealth Limited to purchase its 2% shares of China
Southern Glass (Australia) Limited. On 1 April 2014, the transfer procedure was completed, therefore, the Company obtained the
control right and China Southern Glass (Australia) Limited incorporated into the consolidation range of the Company. The equity of
China Southern Glass (Australia) Limited held by the Company increased from 49% to 51%. On the combination day, the Company
gained AUD 16,107 of net assets of China Southern Glass (Australia) Limited with dealing price of AUD 10,000.
Entities excluded in the consolidation range in the report period compared with the same period of last year
On 11 September 2013, the Company signed an irrevocable equity transfer agreement with third party, Golden Time Investment
Consultant (Shenzhen) Co., Ltd. to dispose its 100% shares of Shenzhen CSG Float Glass Co., Ltd. at RMB 918,000,000. The disposal
was completed in April 2014 and the disposal subsidiary was excluded the consolidation range of the Company.
3. The new subsidiaries in the scope of the consolidation and the subsidiaries not in the scope of
consolidation in the report period
Subsidiaries, entities with special purpose, or entities on which the Company has controlling power through entrusted operation or
leasing added to the consolidation range in the report period.
Unit: RMB
Name Net assets at the end of the period net profit of the period
China Southern Glass (Australia) Limited (i) 5,243,766 2,317,630
Subsidiaries, entities with special purpose, or entities on which the Company has controlling power through entrusted operation or
leasing excluded from the consolidation range in the report period.
Unit: RMB
Net profit from year beginning to
Name Net asset of disposal day
disposal day
Shenzhen CSG Float Glass Co., Ltd (ii) 606,752,936 -3,233,271
Other statements on entities included to or excluded from the consolidation range in the report period
4. Business combination involving entities not under common control in the report period
On 11 March 2014, the Company acquired 2% in China Southern Glass (Australia) Limited from Truly Wealth Co. Ltd. On1 April
2014, the transfer procedure was completed, and the equity was increased to 51% when the Company obtained the control of China
Southern Glass (Australia) Limited. On the combination day, The Company obtained net asset of AUD 16,107 with transfer price of
AUD 10,000.
Whether there was corporate merger realized through multiple transactions and gained control in the report period
□ applicable √ Not applicable
5. Loss of subsidiary resulted from disposal of equity interest in the report period
Name of subsidiary Disposal date Recognition method of gains/loss
Shenzhen CSG Float Glass Co., Ltd (i) 2014-4-30 See the followings
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CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
Other statements on loss of subsidiary resulted from disposal of equity interest
i. On 11 September 2013, the Group signed an irrevocable equity transfer agreement with third party, Golden Time
Investment Limited, to dispose its 100% shares of Shenzhen CSG Float Glass Co., Ltd at RMB 918,000,000. The disposal
was completed on April 2014.
a. Disposal consideration and cash flow are shown as follows:
Shenzhen CSG Float Glass
Co., Ltd
Disposal consideration 918,000,000
Cash and cash equivalents received 918,000,000
Including：Cash and cash equivalents 468,000,000
received
Less: Cash held by disposed company 4,839,877
Net cash received in the year 2014 463,160,123
b. Net assets of disposed companies are as follows:
Shenzhen CSG Float Glass Co., Ltd
处置日 2013年12月31日
Current asset 57,070,456 31,639,616
Non-current asset 900,746,922 898,367,347
Current liability 333,839,442 86,270,756
Non-current liability 17,225,000 233,750,000
Net asset 606,752,936 609,986,207
c. Profit or loss from disposal are shown as follows:
Shenzhen CSG Float
Glass Co., Ltd
Consideration
918,000,000
Add: Fair value of retained equity interests on
disposal date
Add: Minority interest of disposed companies on
disposal date
Add: Other comprehensive income of disposed
companies recycled to profit and loss
Less: Net assets of disposed companies on 606,752,936
disposal date
Investment income 311,247,064
d. Revenue, cost and loss from 1 January 2014 to the date of disposal date are shown as follows:
Shenzhen CSG Float Glass
Co., Ltd
Revenue 15,302,711
65
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
Less: Cost and expenses 19,613,738
Total Loss -4,311,027
Less: Income tax -1,077,756
Net Loss -3,233,271
6.Exchange rate for the translation of the major foreign operations’ financial statements
Asset and Liability Items
30 June 2014 31 December 2013
China Southern Glass (Hong Kong) Limited 1HKD =0.7938RMB 1HKD =0.7862 RMB
China Southern Glass (Australia) Limited 1AUD=5.8064 RMB 1AUD =5.4301 RMB
Shareholders’ equity items, income, expenses and cash flow items other than undistributed profit are calculated by
adopting spot exchange rate at the transaction date.
Whether there was dispose realized through multiple transactions and lost control in the report period
□ applicable √ Not applicable
VII. Notes to key items in the consolidated financial statements
1. Monetary fund
Unit: RMB
End of term Beginning of term
Items Amount of foreign Exchange Amount RMB Amount of foreign Exchange Amount RMB
currency rate currency rate
Cash : -- -- 22,746 -- -- 32,108
RMB -- -- 17,608 -- -- 28,169
HKD 5,010 0.7938 3,977 5,010 0.7862 3,939
AUD 200 5.8064 1,161 5.4301
EUR 8.3946 8.4189
Cash at bank: -- -- 286,306,259 -- -- 276,313,987
RMB -- -- 257,214,259 -- -- 257,353,099
HKD 3,745,591 0.7938 2,973,250 5,657,232 0.7862 4,447,716
AUD 2,926,166 5.8064 16,990,490 5.4301
USD 1,402,077 6.1528 8,626,699 2,367,220 6.0969 14,432,704
EUR 59,748 8.3946 501,561 9,558 8.4189 80,468
JPY 0.0608 0.0578
Other
monetary -- -- 1,407,230 -- -- 3,326,428
balances
RMB -- -- 1,332,885 -- -- 3,326,428
HKD 0.7938 0.7862
AUD 12,804 5.8064 74,345 5.4301
Total -- -- 287,736,235 -- -- 279,672,523
If any mortgage, pledge or freeze on the use of constraints, stored in the offshore, the potential recovery of payment with risk should
66
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
be made a separate description
Other cash balances include margin deposits for issuing letters of credit and bank acceptance notes, amounted to RMB1,200,791 (31
December 2013: RMB3,221,655), which is restricted cash.
2. Notes receivable
(1) Categories of notes receivable
Unit: RMB
Categories End of term Beginning of term
Trade acceptance notes 29,614,019 25,249,258
Bank acceptance notes 277,727,159 298,640,232
Total 307,341,178 323,889,490
(2)Bill receivable pledged at the end of the period
Unit: RMB
Billing unit Billing date Due date amount Note
Global Canadian Solar (Suzhou) 2014-5-15 2014-11-15 6,750,000
Suntech 2014-5-30 2014-11-30 5,000,000
Wuhan Lingyun Architectural
2014-5-4 2014-11-04 4,603,992.85
Decoration Engineering Co. Ltd.
Guangzhou Jianghe Curtain Wall
2014-3-11 2014-9-11 4,369,186.24
system Engineering Co. Ltd
Shenyang Yuanda Aluminium
2014-4-28 2014-10-28 4,000,000
Industry Engineering Co., Ltd
Total -- -- 24,723,179.09 --
3. Account receivable
(1) Account receivable presented on categories
Unit: RMB
End of term Beginning of term
Book balance Bad debt provision Book balance Bad debt provision
Categories
Proportion Proportion Proportion
Amount Amount Amount Amount
% % % Proportion %
Receivables provided bad debt provision in Portfolios
Portfolio1 246,533,341 100% 5,013,649 2% 135,011,681 96% 2,779,130 2%
Portfolio2 4,096,621 0% 0 0% 4,198,132 3% 0 0%
Sub-total of 250,629,962 100% 5,013,649 2% 139,209,813 99% 2,779,130 2%
Portfolios
Account receivable 1,191,530 0% 1,191,530 100% 1,176,952 1% 1,176,952 100%
with minor
individual amount
but bad debt
provision is
provided
Total 251,821,492 -- 6,205,179 -- 140,386,765 -- 3,956,082 --
Remarks on categories of receivable accounts:
As at 30 June 2014, accounts receivable of RMB1,191,530 (31 December 2013: RMB1,176,952) was not individually significant but
provided for bad debts separately, It represented the trade receivables of Dongguan South Glass Photovoltaic Technology co., LTD. ("
Dongguan South CSG PV "). Due to the business dispute, Dongguan South CSG PV made full provision against this receivable.
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CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
Receivable accounts with large amount individually and bad debt provisions were provided
□ Applicable √ Non-applicable
Receivable accounts on which bad debt provisions are provided on age analyze basis in the portfolio
□ Applicable √ Non-applicable
Receivable accounts on which bad debt provisions are provided on percentage analyze basis in a portfolio
√Applicable □ Non-applicable
Unit: RMB
Name of portfolio Book balance Proportion % Bad debt provision
Portfolio 1 246,533,341 2% 5,013,649
Portfolio 2 4,096,621 0% 0
Total 250,629,962 -- 5,013,649
Receivable accounts on which bad debt provisions are provided by other ways in the portfolio
□ Applicable √ Non-applicable
Receivable accounts with minor amount but on which bad debt provisions are provided individually at end of period
√Applicable □ Non-applicable
Unit: RMB
Description of the
Book balance Amount of bad debt Providing rate (%) Reason
receivable accounts
Due to the business
dispute, made full
loan 1,191,530 1,191,530 100%
provision against this
receivable.
Total 1,191,530 1,191,530 -- --
(2) Top 5 debtors in the receivable accounts
Unit: RMB
Name of the companies Relation with the Portion in total
Amount Ages
receivables(%)
Company
Company A Independent third party 32,656,571 Within 1 year 13%
Company B Independent third party 26,764,397 Within 1 year 11%
Company C Independent third party 22,128,297 Within 1 year 9%
Company D Independent third party 17,817,406 Within 1 year 7%
Company E Independent third party 10,196,163 Within 1 year 4%
Total -- 109,562,834 -- 44%
(3) Receivable accounts of associated enterprise
Unit: RMB
Name Relationship with the Company Amount Proportion of the total amount
Shenzhen CSG Display
associated enterprise 4,096,621 1.62%
Technology Co. Ltd
Total -- 4,096,621 1.62%
4. Other account receivable
(1) Other receivable account on categories
Unit: RMB
Categories End of term Beginning of term
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CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
Book balance Bad debt provision Book balance Bad debt provision
Proportio Proportio Proportion Proportio
Amount Amount Amount Amount
n% n% % n%
Other receivables provided bad debt provision in Portfolios
Portfolio1 41,884,680 100% 493,729 1.18% 89,233,730 81% 359,449 0.40%
Portfolio2 20,491,742 19%
Sub-total of Portfolios 41,884,680 100% 493,729 1.18% 109,725,472 100% 359,449 0.30%
Total 41,884,680 -- 493,729 -- 109,725,472 -- 359,449 --
Statement on categories of other receivable accounts:
Other receivable accounts with large amount and were provided bad debt provisions individually at end of period.
□ Applicable √ Non-applicable
Other receivable accounts in the portfolio on which bad debt provisions were provided on age analyze basis
□ Applicable √ Non-applicable
Other receivable accounts in the portfolio on which bad debt provisions were provided on percentage basis
√ Applicable □ Non-applicable
Unit: RMB
Name of portfolio Book balance proportion% Bad debt provision
portfolio 1 41,884,680 1.18% 493,729
Total 41,884,680 -- 493,729
Other receivable accounts in the portfolio on which bad debt provisions were provided on other basis
□ Applicable √ Non-applicable
Other receivable accounts with minor amount but were provided bad debt provisions individually at end of period
□ Applicable √ Non-applicable
(2) Top 5 debtors of other receivable accounts
Unit: RMB
Name of the companies Relation with the Portion in total other
Amount Ages
Industrial Company receivables (%)
Company A Independent third party 17,093,750 Within 1 year 41%
Company B Independent third party 5,670,669 Within 1 year 14%
Company C Independent third party 5,050,000 Within 1 year 12%
Company D Independent third party 1,240,500 Within 1 year 3%
Company E Independent third party 1,000,000 Within 1 year 2%
Total -- 30,054,919 -- 72%
5. Prepayment
(1) Prepayment presented by ages:
Unit: RMB
End of term Beginning of term
Age Proportion Proportion
Amount Amount
ratio (%) ratio (%)
within 1 year 113,812,518 95.44% 64,425,812 87.80%
1-2 years 830,039 0.70% 1,194,891 1.63%
2-3 years 355,376 0.30%
Over 3 years 4,248,801 3.56% 7,757,626 10.57%
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CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
Total 119,246,734 -- 73,378,329 --
(2) Top 5 receivers of prepayments
Unit: RMB
Relation with the
Name of the companies Amount Date Reason of unsettled
Company
Supplier A Independent third party 12,131,001 2014 Prepayment for gas
Independent third party Prepayment for
Supplier B 8,575,917 2014
equipment purchase
Independent third party Prepayment for
Supplier C 7,848,951 2014
equipment purchase
Independent third party Prepayment for
Supplier D 6,346,318 2014
equipment purchase
Independent third party Prepayment for
Supplier E 6,035,909 2013
equipment purchase
Total -- 40,938,096 -- --
(3) Statements on prepayments
The balances of advance to suppliers are dominated in RMB.
6. Inventories
(1) Categories of inventory
Unit: RMB
End of term Beginning of term
Items Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Raw materials 175,484,780 1,861,067 173,623,713 172,776,858 3,460,876 169,315,982
Product in process 20,382,822 20,382,822 11,390,574 11,390,574
Products in stock 213,187,553 21,650 213,165,903 159,807,342 674,152 159,133,190
Material in
35,986,109 35,986,109 38,844,966 38,844,966
circulation
Total 445,041,264 1,882,717 443,158,547 382,819,740 4,135,028 378,684,712
(2) Inventory impairment provision
Unit: RMB
Balance of book Decreased this term
Balance of book value
Categories value at beginning of Provided this term
Written back Transferred at end of term
term
Raw materials 3,460,876 1,599,809 1,861,067
Products in stock 674,152 652,502 21,650
Total 4,135,028 2,252,311 1,882,717
(3) Inventory impairment provisions
Reason of Percentage of amount written
Items Basis of providing impairment provision
written back back in the balance of the
70
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
inventory at end of report term
Raw materials The amount of book value reduce net realizable value
Products in stock The amount of book value reduce net realizable value
7. Other current assets
Unit: RMB
Items End of term Beginning of term
fixed assets held for sale 714,861,781
construction in progress held for sale 96,289,101
intangible assets held for sale 41,240,723
Deductible input value-added tax 187,292,116 169,072,490
Total 187,292,116 1,021,464,095
8. Available-for-sale financial asset
(1) Available-for-sale financial assets
Unit: RMB
Items Fair value at the end of term Fair value at the beginning of term
Available-for-sale equity instruments 135,900,000 122,760,000
Total 135,900,000 122,760,000
The held-to-maturity investments in this term are reclassified as available-for-sale financial assets, the amount of the reclassification
in this term is RMB0. This amount holds 0% of the proportion of total of held-to-maturity investments before reclassification.
Statement on available-for-sale financial assets:
Available-for-sale equity instrument is the Group’s investment in Guangdong Golden Glass Technologies Limited(“Golden Glass”).
The Group held 18,000,000 shares of Golden Glass and had 8.33% voting rights.
The fair value of the available for sale equity instrument was determined by reference to the quoted market price of Golden Glass.
this year, the fair value loss (net of income tax) is RMB 10,115,238 (Jan.to Jun. 2013:income of RMB 9,083,510) had been
included in capital reserve.
9. Investment to joint venture and associated enterprise
Unit: RMB
Proportion of
Equity
the right to Total asset at Total liabilities Total net asset
Name of the proportion Total revenue Net profit of
vote for the the end of the at the end of at the end of
invested unit held by the of the period the period
Company in period the period the period
Company
the investor
1. Joint venture
2.Associated enterprise
Shenzhen CSG
Display
44.70% 44.70% 1,540,983,231 694,446,708 846,536,523 302,446,982 154,510,001
Technology Co.,
Ltd
10. Long-term equity investment
(1) Details of long-term equity investment
Unit: RMB
71
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
Statement on
Impairme
Percentag Voting differences Impai Cash
nt
Company Calculati Beginning e of share power between the rment dividend of
Initial costs Changed by Ending balance provision
invested in ng basis balance in the in the shareholding provi the current
provided
firm % firm % and voting sion term
this term
rights
Shenzhen
CSG
Cost
Display 186,330,000 768,204,865 -16,610,279 751,594,586 44.70% 44.70% 26,235,364
Method
Technology
Co., Ltd
Total -- 186,330,000 768,204,865 -16,610,279 751,594,586 -- -- -- 26,235,364
11. Fixed assets
(1) Particulars of fixed assets
Unit: RMB
Balance of book Balance of book
Items value at beginning Increased this term Decreased this term value at end of
of term term
I.Original cost 10,106,051,239 1,644,005,883 137,304,182 11,612,752,940
Buildings 2,625,181,542 248,055,947 2,873,237,489
Machinery and equipment 7,316,514,097 1,381,357,844 133,692,548 8,564,179,393
Motor vehicles and others 164,355,600 14,592,092 3,611,634 175,336,058
Balance of book
Increased this Provided current Balance at end of
-- value at beginning Decreased this term
term term current term
of term
II.Accumulated
2,075,468,020 333,251,017 51,804,372 2,356,914,665
depreciation
Buildings 315,226,370 41,282,699 356,509,069
Machinery and equipment 1,653,676,371 273,869,504 48,453,266 1,879,092,609
Motor vehicles and others 106,565,279 18,098,814 3,351,106 121,312,987
Balance of book
Balance at end of
-- value at beginning --
current term
of term
III. Total book value 8,030,583,219 -- 9,255,838,275
Buildings 2,309,955,172 -- 2,516,728,420
Machinery and equipment 5,662,837,726 -- 6,685,086,784
Motor vehicles and others 57,790,321 -- 54,023,071
IV.Total provision for
50,645,536 -- 47,835,722
impairment loss
Machinery and equipment 50,645,536 -- 47,835,722
V. Net book value 7,979,937,683 -- 9,208,002,553
Buildings 2,309,955,172 -- 2,516,728,420
Machinery and equipment 5,612,192,190 -- 6,637,251,062
Motor vehicles and others 57,790,321 -- 54,023,071
The depreciation charged in this term was RMB 333,251,017. The amount of fixed assets transferred from constructions in progress
was RMB 1,639,837,651.
(2) Fixed asset not licensed yet
Items Reason for not granted Expected date of grant
Buildings Have submitted the required documents and are in the process of In the next two years
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CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
application, or the related land use right certificate pending
Statement on fixed asset:
The depreciation charged in Jan. to Jun. 2014 was RMB 333,251,017 (Jan. to Jun. 2013: RMB 304,963,365). The amount charged
into cost of sale, selling expense and administrative expense was RMB 315,822,549, RMB 642,394 and RMB 16,786,074 (Jan. to
Jun. 2013: RMB284,824,722, RMB770,512 and RMB19,368,131).
The amount of fixed assets transferred from constructions in progress was RMB 1,639,837,651 (Jan. to Jun. 2013: RMB
554,954,873), included original value of constructions in progress RMB 1,785,070,454 and provision for impairment RMB
145,232,803.
As at 30 June 2014, Buildings Ownership Certificates for certain buildings of the Group with carrying amounts of RMB997,718,443
(cost of RMB1,112,971,938) (31 December 2013: carrying amount of RMB1,071,562,332, cost of RMB1,175,670,613) had not yet
been obtained by the Group. Included were certain buildings with carrying amounts of RMB 63,366,758 (cost of RMB 69,109,024)
(31 December 2013:carrying amount of RMB65,318,561, cost of RMB69,109,024) because the land ownership certificates of the
lands on which these buildings located had not been obtained. The Company’s directors consider that there is no legal restriction
for the Group to apply for and obtain the Buildings Ownership Certificates and there will not be any significant adverse impact on the
operations of the Group.
12. Construction in process
(1)Particulars of construction in process
Unit: RMB
Amount at end of term Amount at beginning of term
Items Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Yichang Polysilicon cold
hydrogenation, technological
transformation project of
distillation system, reduction 1,525,226,129 144,480,698 1,380,745,431
furnace and CDI system
technically improvement
project
Xianning CSG energy
conservation environmental 16,511,501 16,511,501 5,484,208 5,484,208
protection material project
Wujiang photovoltaic
493,867,785 493,867,785 389,766,964 389,766,964
encapsulation material project
Xianning CSG energy-saving
240,090,821 240,090,821 138,872,425 138,872,425
glass project
Yichang 700MW silicon slice
expansion project third 211,369,420 211,369,420 80,510,116 80,510,116
phase
Wujiang CSG project 68,761,365 68,761,365 58,282,399 58,282,399
Dongguan PV 200MW solar
233,201,179 233,201,179 198,993,042 198,993,042
cell expansion project
Yichang CSG ultrathin glass
301,510,546 301,510,546 211,049,240 211,049,240
project
Qingyuan CSG
high-performance ultrathin 116,303,872 116,303,872 28,936,268 28,936,268
glass project
Yichang CSG expansion
project of electronic-grade
polysilicon with annual 25,399,510 25,399,510
production capacity of 1000
tons
Chengdu CSG Architectural
31,546,587 31,546,587 12,481,916 12,481,916
expansion project
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CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
Dongguan CSG solar on-line
227,571,263 34,169,351 193,401,912 225,650,441 34,169,351 191,481,090
coated project
Others 32,054,277 32,054,277 66,567,106 752,105 65,815,001
Total 1,998,188,126 34,169,351 1,964,018,775 2,941,820,254 179,402,154 2,762,418,100
74
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
(2) Movement of significant project
Unit: RMB
Capitalizin
Investm Accumulate Including:
Transferred g rate of
Beginning of Increased Other ent on of interest
Projects Budget into fixed Progress interest Fund recourse End of term
term this term decreases budget interest capitalized
assets this
(%) capitalized this term
period %
Yichang Polysilicon
cold hydrogenation,
technological
transformation project
of distillation system, Internal fund
1,760,000,000 1,525,226,129 47,097,187 1,572,323,316 91% 100% 34,447,648 10,609,882 5.10%
reduction furnace and and bank loan
CDI system
technically
improvement
project(ii)
Xianning CSG energy
conservation
Internal fund
environmental 599,340,000 5,484,208 24,181,976 13,154,683 88% 97% 16,511,501
and bank loan
protection material
project
Wujiang photovoltaic
Internal fund
encapsulation material 579,800,000 389,766,964 104,100,821 83% 95% 5,430,299 1,147,448 5.78% 493,867,785
and bank loan
project
Xianning CSG
Internal fund
energy-saving glass 264,672,252 138,872,425 104,103,917 2,885,521 86% 90% 5,827,123 3,818,370 6.21% 240,090,821
and bank loan
project
Yichang 700MW
Internal fund
silicon slice expansion 1,980,000,000 80,510,116 130,865,457 6,153 20% 35% 11,333,249 795,483 5.10% 211,369,420
and bank loan
project third phase(iii)
Internal fund
Wujiang CSG project 845,630,000 58,282,399 11,812,180 1,333,214 99% 99% 68,761,365
and bank loan
Dongguan PV
Internal fund
200MW solar cell 697,000,000 198,993,042 34,244,405 36,268 67% 70% 797,723 797,723 5.16% 233,201,179
and bank loan
expansion project
Yichang CSG Internal fund
320,000,000 211,049,240 90,461,306 94% 99% 1,687,854 1,527,654 5.46% 301,510,546
ultrathin glass project and bank loan
Qingyuan CSG 471,660,000 28,936,268 87,367,604 35% 60% Internal fund 116,303,872
high-performance
75
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
ultrathin glass project
Yichang CSG
expansion project of
electronic-grade Internal fund
112,485,200 25,399,510 17% 37% 129,597 129,597 5.10% 25,399,510
polysilicon with and bank loan
annual production
capacity of 1000 tons
Chengdu CSG
Internal fund
Architectural 222,817,517 12,481,916 153,829,512 134,764,841 58% 58% 31,546,587
and bank loan
expansion project(ii)
Dongguan CSG solar Internal fund
390,000,000 225,650,441 10,116,209 8,195,387 35% 35% 227,571,263
on-line coated project and bank loan
Internal fund
Others 66,567,106 26,813,435 60,566,458 759,806 1,110,143 366,778 32,054,277
and bank loan
Total 8,243,404,969 2,941,820,254 850,393,519 1,785,070,454 8,955,193 -- -- 60,763,636 19,192,935 -- -- 1,998,188,126
Statements on movement of significant projects:
(i) The proportion of project expenditure incurred to the budget was determined by the accumulative expenditures incurred divided by the total budget. Some projects due to parts of the projects
had been completed and were transferred into fixed assets.
(ii) The budget of the project contained the amount from fixed assets to construction in progress.
(iii) The budget incurred for these kinds of projects included cost of acquiring land use rights. The balance of construction in progress did not include the costs of acquiring land-use right.
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CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
(3) Impairment provisions of construction in process
Unit: RMB
Beginning of Increased Decreased this
Items End of term Reason to provide
term this term term
Yichang Polysilicon cold
hydrogenation, technological
transformation project of distillation
145,232,803 145,232,803 transferred into fixed asset
system, reduction furnace and CDI
system technically improvement
project(ii)
Provision is determined by the
Dongguan CSG solar on-line coated difference between carrying
34,169,351 34,169,351
project amount and estimated net selling
price.
Total 179,402,154 145,232,803 34,169,351 --
(4) Progress of material construction in process
Items Progress Note
Yichang Polysilicon cold hydrogenation, technological
transformation project of distillation system, reduction furnace 100% complete
and CDI system technically improvement project
Xianning CSG energy conservation environmental protection
97% Physical progress of the construction work
material project
Wujiang photovoltaic encapsulation material project 95% Physical progress of the construction work
Xianning CSG energy-saving glass project 90% Physical progress of the construction work
Yichang 700MW silicon slice expansion project third phase 35% Physical progress of the construction work
Wujiang CSG project 99% Physical progress of the construction work
Dongguan PV 200MW solar cell expansion project 70% Physical progress of the construction work
Yichang CSG ultrathin glass project 99% Physical progress of the construction work
Qingyuan CSG high-performance ultrathin glass project 60% Physical progress of the construction work
Yichang CSG expansion project of electronic-grade polysilicon
37% Physical progress of the construction work
with annual production capacity of 1000 tons
Chengdu CSG Architectural expansion project 58% Physical progress of the construction work
Dongguan CSG solar on-line coated project 35% Physical progress of the construction work
13. Intangible assets
(1) Particulars of intangible assets
Unit: RMB
Balance of book value at the Increased this Decreased this Balance of book value at the
Items
beginning of term term term end of term
Total original cost 1,050,129,092 30,259,983 1,080,389,075
Land use rights 930,748,447 930,748,447
Patents 93,906,914 29,985,955 123,892,869
Exploitation rights 4,456,536 4,456,536
Others 21,017,195 274,028 21,291,223
Accumulated amortisation 103,589,084 15,022,106 118,611,190
Land use rights 66,982,288 9,491,268 76,473,556
77
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
Patents 26,893,388 3,390,001 30,283,389
Exploitation rights 2,104,160 257,374 2,361,534
Others 7,609,248 1,883,463 9,492,711
Net book value 946,540,008 15,237,877 961,777,885
Land use rights 863,766,159 -9,491,268 854,274,891
Patents 67,013,526 26,595,954 93,609,480
Exploitation rights 2,352,376 -257,374 2,095,002
Others 13,407,947 -1,609,435 11,798,512
Provision for impairment 13,210,480 13,210,480
Land use rights
Patents 13,201,347 13,201,347
Exploitation rights
Others 9,133 9,133
Net book value 933,329,528 15,237,877 948,567,405
Land use rights 863,766,159 -9,491,268 854,274,891
Patents 53,812,179 26,595,954 80,408,133
Exploitation rights 2,352,376 -257,374 2,095,002
Others 13,398,814 -1,609,435 11,789,379
The amortisation amount is RMB15,022,106 in this term.
(2) R&D expenses
Unit: RMB
Decreased this term
Items Beginning of term Increased this term Accounted into End of term
Recognized as
current income
intangible asset
account
R&D expenses 9,881,310 58,906,288 52,410,627 5,926,905 10,450,066
Total 9,881,310 58,906,288 52,410,627 5,926,905 10,450,066
The development expenditures account for 62% of total research and development expenditures.
The intangible assets arised from internal research and development accounted for 7.13% of total of intangible assets.
Description of the development project of the company, including value of more than RMB 1 million in this period and the assessed
value accounted for basis, shall disclose the name of evaluation institution and evaluation methods
In Jan. to Jun. 2014, the total amount of research and development expenditures of the Group is RMB 94,805,902 (Jan. to Jun. 2013:
RMB78,002,898), including RMB88,311,535 (Jan. to Jun. 2013: RMB70,449,270) recorded in income statement,
RMB5,926,905 (Jan. to Jun. 2013: RMB1,294,436) was recognized as intangible assets. In Jan. to Jun. 2014, the development
expenditures account for 62% of total research and development expenditures(Jan. to Jun. 2013: 58%). As at 30 June 2014, the
intangible assets arised from internal research and development accounted for 7.13% of total of intangible assets (31 December 2013:
6.61%).
14. Goodwill
Unit: RMB
Impairment
Name of the companies or Decreased this
Beginning balance Increased this term Ending balance provision at
goodwill item term
end of term
Tianjin CSG Architectural Glass
3,039,946 0 0 3,039,946 0
Co., Ltd.
Total 3,039,946 0 0 3,039,946 0
Notes to impairment testing method and the impairment of goodwill
The goodwill is allocated to following cash generating unit or group of cash generating unit:
78
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
30 June 2014 31 December 2013
Architectural Glass segment 3,039,946 3,039,946
The Goodwill was caused by the Company's acquisition of minority shareholders’ equity of Tianjin CSG Architectural Glass Co., Ltd.
The directors of the company considered that the goodwill was not impaired at 30 June 2014.
The management determined the recoverable amount of goodwill based on estimation of present value of the future cash flows from
the cash generating unit. The future cash flows are prepared based on the 5 years cash flow forecast approved by management. The
profit margin and growth rate used in the cash flows forecast are determined by management’s historical experiences and expectation
of future market development. The discount rate adopted was pre-tax rate and reflected the special risk related to the cash generating
unit.
15. Long-term expenses to be amortized
Unit: RMB
At the beginning Increased this Amortized this At the end of Reason of other
Items Other decrease
of term term term term decreasing
Expenses to be
3,280,021 129,008 512,325 2,896,704
amortized
Total 3,280,021 129,008 512,325 2,896,704 --
16. Deferred income tax asset and deferred income tax liabilities
(1)Deferred income tax assets and liabilities are presented as net amount after neutralization
Deferred income tax assets and liabilities after neutralization
Unit: RMB
The temporary Deferred income tax The temporary
Deferred income tax
Items differences at end of assets at beginning of differences at
assets at end of term
term term beginning of term
Deferred income tax assets: 107,855,079 622,384,734 164,787,158 945,930,458
Deferred income tax liabilities: 34,118,278 257,952,356 34,298,029 294,630,776
Particulars of deferred income tax assets and liabilities after neutralization
Unit: RMB
Items amount after neutralization
Deferred income tax assets: 28,564,427
Deferred income tax liabilities: 28,564,427
17. Detail of asset impairment provision
Unit: RMB
Balance of book Decreased this term Balance of book
Items value at beginning Increased this term value at end of
of term Written back Transferred term
I. Bad debt provision 4,315,531 2,766,413 383,036 6,698,908
II. Inventory impairment
4,135,028 2,252,311 1,882,717
provision
VII. Fixed asset impairment
50,645,536 2,809,814 47,835,722
provision
IX. Construction in process
179,402,154 145,232,803 34,169,351
impairment provision
XII. Intangible asset 13,210,480 13,210,480
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CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
impairment provision
Total 251,708,729 2,766,413 383,036 150,294,928 103,797,178
18. Other non-current assets
Unit: RMB
Items End of term Beginning of term
Prepayment of land premium 6,510,000 6,510,000
Total 6,510,000 6,510,000
19. Short-term loans
(1) Categories of short-term loans
Unit: RMB
Items End of term Beginning of term
Guaranteed 263,295,208 139,743,800
Unsecured 495,000,000 185,000,000
Short-term finance bonds 1,200,000,000 1,100,000,000
Total 1,958,295,208 1,424,743,800
Statement on short-term loans:
As at 30 June 2014, loans of certain subsidiaries of the Company amounting to RMB263,295,208 (31 December 2013:
RMB139,743,800) were guaranteed by the Company, of which the minority shareholders provided a back to back
guarantee to the Company amounting to RMB16,217,180 (31 December 2013: RMB13,577,007).
Approved by file No. [2014] CP11 of Inter Bank Market Trading Association, the Company is entitled to issue short term financial
bonds, up to 14 January 2016. The company has issued short term bonds of RMB500,000,000 on 14 March 2014 , and will mature on
14 March 2015, with an annual interest rate of 5.65%.
Approved by file No. [2013]CP20 of Inter Bank Market Trading Association, the Company is entitled to issue short term financial
bonds, up to 25 January 2015. The Company issued short term bonds of RMB1,100,000,000 on 7 March 2013, and matured on 7
March 2014, with an annual interest rate of 4.26%. It was paid back in the report period. On 27 June 2014, the Company continued
to issue the 2nd batch of short-term financing bills for the year with a total amount of RMB 700,000,000 and annual interest rate of
5.10%, and the expiry date is 27 June 2015.
As at 30 June 2014, the weighted average interest rate of short-term borrowings was 5.82% per annum (31 December 2013: 5.52%).
20. Notes payable
Unit: RMB
Categories End of term Beginning of term
Bank acceptance notes 8,221,924 4,429,188
Total 8,221,924 4,429,188
Amount due in next fiscal period is RMB 8,221,924.
Statement on notes payable
All notes payable are due within one year.
21. Account payable
(1)Particulars of account payable
Unit: RMB
Items End of term Beginning of term
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CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
Account payable for materials 483,709,102 451,221,943
Account payable for constructions 133,070,276 183,742,269
Account payable for equipments 302,147,621 269,562,625
Account payable for freight 66,439,273 56,828,669
Others 15,496,427 20,260,943
Total 1,000,862,699 981,616,449
(2) Statement on payable accounts due for over one year
As at 30 June 2014, accounts payable over 1 year is approximately RMB135,803,483 (31 December 2013: RMB 94,719,853),
which mainly comprised of payables for construction works. As the construction works were not passing the final acceptance test, the
balance was not yet settled.
22. Accounts received in advance
(1)Particulars of accounts received in advance
Unit: RMB
Items End of term Beginning of term
Advances from customers 149,764,555 160,689,070
Total 149,764,555 160,689,070
(2)Statement on large amount prepayment received and due for over one year
The balances were substantively dominated in RMB and with the aging within 1 year.
23. Employee benefits payable
Unit: RMB
Balance of book value Balance of book value
Items Increased this term Decreased this term
at beginning of term at end of term
Wages and
salaries, bonuses,
98,204,242 330,871,410 360,325,610 68,750,042
allowances and
subsidies
Labor union and
employee 13,677,569 5,245,988 4,765,321 14,158,236
education funds
Social security
7,080 37,865,445 37,849,223 23,302
contributions
Included: Pension 5,121 26,655,965 26,647,311 13,775
Medical 1,296 7,434,972 7,430,121 6,147
367 1,840,224 1,838,768 1,823
Unemployment
Injury 181 1,225,480 1,224,510 1,151
Maternity 115 708,804 708,513 406
Housing funds 1,688,347 13,724,960 13,736,391 1,676,916
Others 52,800,000 27,000,000 52,329,400 27,470,600
Total 166,377,238 414,707,803 469,005,945 112,079,096
The amount of overdue employee benefits payable is RMB 0.
The amount the trade union funds and employee education expense is RMB5,245,988. The amount of non-monetary
81
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
welfare is RMB 0. The compensation for labor relations is RMB 0.
The issued time and amount of employee benefits payable
As at 30 June 2014, there was no overdue payroll and welfare expense. The balances will be settled in 2013.
Pursuant to the resolution in the 15th meeting of the third session board of directors of the Company on 28 January
2005, the board of directors adopted a management bonus scheme which is based on the annual return on net assets and
the net profit for the year. During the period, management bonus RMB 27,000,000 (Jan. – June 2013：RMB 9,000,000)
were accrued and charged to profit and loss.
24. Tax payable
Unit: RMB
Items End of term Beginning of term
Value-added-tax payable 11,096,652 29,120,147
Corporate income tax payable 71,232,493 103,256,466
Urban maintenance and construction tax 1,844,983 2,905,195
Education surcharge 3,531,527 4,201,672
Housing property tax payable 4,439,479 12,493,565
Others 7,451,072 8,777,658
Total 99,596,206 160,754,703
25. Interest payable
Unit: RMB
Items End of term Beginning of term
Interest payable for long-term borrowings 918,699 1,501,744
Interest for corporate bonds 74,505,379 21,205,379
Interest payable for short-term borrowings 5,099,575 1,398,983
Interest payable for short-term financing 6,261,389 36,661,428
Total 86,785,042 60,767,534
26. Dividends payable
Unit: RMB
Name of the company End of term Beginning of term Reason for unpaid over one year
Shareholders 687,627 687,627
Total 687,627 687,627 --
Statement on dividends payable
As at 30 June 2014, the balance of the dividends payable represented those declared before the reform of shareholder
structure of the Company but not yet able to pay to then shareholders.
27. Other account payable
(1)Particulars of other account payable
Unit: RMB
Items End of term Beginning of term
Advanced received for the disposal of equity
450,000,000
interests
Guarantee deposits received from 78,644,037 65,810,543
82
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
construction contractors
Accrued operating expense (i) 25,294,407 23,158,690
Temporary receipts 44,521,722 6,144,727
Withholding income tax 5,574,643 2,597,520
labour cost payable 1,911,773 8,000,696
Payable for acquisition of Minority Interests
69,030,000
(ii)
Others 6,773,172 1,418,407
Total 231,749,754 557,130,583
Statement on large amount other payable accounts due for over one year
The balances are substantively dominated in RMB.
(2) Statement on large amount other payable accounts
(i) Accrued operating expenses represent expenses that have incurred but not yet invoiced, including utilities expenses,
professional service charges, travel fees and etc.
There were no shareholders’ interests of voting power up to 5% (including 5%) as well as payments for related parties.
The balances are substantively dominated in RMB.
(ii)Payable for acquisition of Minority Interests was because the Company's subsidiary, CSG (Hong Kong) Limited and
Fung Ltd. signed an agreement with Jinfeng Co., Ltd. (abbr. "Jinfeng") for the acquisition of 25% equity share of a
subsidiary of the Company, Xianning CSG Glass Co., Ltd. held by Jinfeng. The transfer procedure was completed on
June 25, 2014, and the amount was paid completed on July 9, 2014.
28. Non-current liabilities due within one year
(1)Particulars of non-current liabilities due within one year
Unit: RMB
Items End of term Beginning of term
Long-term borrowing due within 1year 182,026,370 399,849,715
Total 182,026,370 399,849,715
(2) Long-term loans due within 1 year
Long-term loans due within 1 year
Unit: RMB
Items End of term Beginning of term
guaranteed 182,026,370 106,074,515
credit 293,775,200
Total 182,026,370 399,849,715
The amount of overdue loans to renew of long term loans due within one year is RMB 0.
Top 5 long-term loans due within 1 year
Unit: RMB
End of term Beginning of term
Loan Beginning Maturity
Currency Interest rate % Amount of Amount of Amount of Amount of
provided by Date date foreign original foreign original
currency currency currency currency
83
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
Bank A 2011-4-27 2014-11-20 USD 3.83% 3,750,000 23,073,000 3,750,000 22,863,375
Bank B 2013-1-5 2015-3-27 RMB 6.15% 13,333,333 13,333,333
Bank C 2011-8-3 2014-8-2 RMB 6.46% 10,000,000 10,000,000
Bank B 2012-12-6 2015-3-27 RMB 6.15% 8,666,667 8,666,667
Bank B 2012-8-8 2015-3-27 RMB 6.15% 7,666,667 7,666,667
Total -- -- -- -- -- 62,739,667 -- 62,530,042
29. Other current liability
Unit: RMB
Items Closing balance of book value Opening balance of book value
Accrued liabilities-other(Placer mining
300,000 300,000
environmental recovery fee)
Total 300,000 300,000
30. Long-term borrowings
(1) Categories of long-term borrowings
Unit: RMB
Items End of term Beginning of term
Guarantee 275,992,783 302,904,204
Total 275,992,783 302,904,204
Statement on categories of long-term borrowings:
As at 30 June 2014, loans of certain subsidiaries of the Company were guaranteed by the Company, of which, the
minority shareholders provided a back to back guarantee to the Company amounting to RMB68,126,126 (31 December
2013: RMB74,536,483). The interest should be paid monthly or quarterly. The principals will be repaid between
March 2015 and April 2019.
(2) Top 5 long-term borrowings
Unit: RMB
End of term Beginning of term
borrowings Beginning date Ending date of Interest Amount of Amount of Amount of Amount of
Currency
provided by of borrowing borrowing rate(%) foreign original foreign original
currency currency currency currency
Bank D 2013-8-30 2016-8-29 RMB 6.27% 47,000,000 47,000,000
Bank E 2014-5-4 2017-5-4 RMB 6.15% 25,000,000
Bank B 2013-6-27 2017-6-26 RMB 6.40% 18,750,000 30,000,000
Bank B 2013-7-12 2017-7-11 RMB 6.40% 18,750,000 30,000,000
Bank F 2014-3-24 2017-3-23 RMB 6.15% 18,000,000
Total -- -- -- -- -- 127,500,000 -- 107,000,000
Statement on categories of long-term borrowings
As at 30 June 2014, the amount of overdue loans to renew in the long-term borrowings was RMB 0. The weighted
average interest rate of long-term borrowings was 6.18% per annum (31 December 2013: 5.76%).
31. Bond payable
Unit: RMB
84
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
Bond Face value Date of Bond Issuing Interest Interest Interes Interest Closing
issue term amount payable at occurred this t paid payable at end balance
beginning of period this of period
period period
Corporate
1,000,000,000 2010-10-20 5-year 989,100,000 10,602,689.50 26,650,000 0 37,252,689.50 996,673,700.50
bonds
Corporate
1,000,000,000 2010-10-20 7-year 989,100,000 10,602,689.50 26,650,000 0 37,252,689.50 996,673,700.50
bonds
Statement on bonds payable, including the condition and time of converting of the convertible bonds
According to the China Securities Regulatory Commission license [2010] No 1369 published by the China Securities
Regulatory Commission, the Company issued the corporate bonds on 20 October 2010, with a par value of RMB2
billion. The Corporate Bonds include RMB1 billion that will mature in 5 years and another RMB1 billion that will
mature in 7 years (“7 year Bonds”). The 7 year Bonds holders have a put option over the Company to repurchase at the
end of the fifth year. The Corporate Bonds carried at fixed interest rate of 5.33% per year, the interests are paid annually,
and the effective interest rate is 5.59%.
32. Other non-current liabilities
Unit: RMB
Items Closing balance of book Opening balance of book
Deferred income 414,180,279 432,364,880
Total 414,180,279 432,364,880
Statement on other non-current liabilities, including asset-related and income-related government subsidy and closing balances:
Deferred income related to governmental grants:
Unit: RMB
Included in
Grants newly Other Closing Related to assets or
items of liabilities Opening balance non-business
increased changes balance income
income
Xianning CSG Golden Solar
60,104,917 1,515,250 58,589,667 Related to assets
Project(i)
Tianjin CSG Architectural Glass
46,366,000 1,164,000 45,202,000 Related to assets
CSG Golden Solar Project(ii)
Dongguan CSG Architectural
Glass CSG Golden Solar 33,583,584 914,000 32,669,584 Related to assets
Project(iii)
Hebei CSG Glass Golden Solar
31,810,000 5,500,000 932,750 36,377,250 Related to assets
Project(iv)
Wujiang CSG Glass Co., Ltd(v) 54,191,230 868,804 1,390,756 53,669,278 Related to assets
Yichang Photoelectric Glass
41,719,660 41,719,660 Related to assets
products project (vi)
Yichang Silicon products
33,046,875 4,420,000 3,375,989 34,090,886 Related to assets
project (vii)
Chengdu Float Cogeneration
17,091,540 827,010 16,264,530 Related to assets
project(viii)
Yichang CSG crucible
11,843,870 370,552 11,473,318 Related to assets
project(ix)
Group Coating Film
11,792,800 11,792,800 Related to assets
experimental project(x)
Xianning CSG Glass Co.,
63,632,400 17,500,001 46,132,399 Related to income
Ltd(xi)
other 27,182,004 983,097 26,198,907 Related to assets
Total 432,364,880 10,788,804 28,973,405 414,180,279 --
(i)The allowance was granted by Xianning Municipal Government. The allowance was used for establishing PV power station. When
the facilities were set up, they belonged to Xianning CSG. The allowance will be credited to income statement in 20 years, the useful
life of the PV power station.
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CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
(ii)The allowance was granted by Tianjin Municipal Government. The allowance was used for establishing PV power station. When
the facilities were set up, they belonged to Tianjin CSG. The allowance will be credited to income statement in 20 years, the useful
life of the PV power station.
(iii)The allowance was granted by Dongguan Municipal Government. The allowance was used for establishing PV power station.
When the facilities were set up, they belonged to Dongguan CSG Architectural Glass. The allowance will be credited to income
statement in 20 years, the useful life of the PV power station.
(iv)The allowance was granted by Langfang Municipal Government. The allowance was used for establishing PV power station.
When the facilities were set up, they belonged to Hebei CSG. The allowance will be credited to income statement in 20 years, the
useful life of the PV power station.
(v)It was granted by Wujiang local government for infrastructure construction and will be amortised and credited to income statement
in 15 years, in accordance with the minimum operating period committed.
(vi)It represented the funds granted by Yichang local government for photoelectric glass project. It will be amortised and credited to
income statement in 15 years, in accordance with the minimum operating period committed.
(vii)The balance represented amounts granted to Yi Chang CSG Silicon Materials Co., Ltd. (“Yichang Silicon”) by Yichang City
Dongshan Development Corporation under the provisions of the investment contract signed between the Group and the Municipal
Government of Yi Chang. The proceeds were designed for the construction of electricity transformer and the pipelines. Yichang
Silicon is entitled to the ownership of the facilities and amortised by 15 years according to the useful life of the converting station.
(viii)It represented the funds granted by Chengdu local government for energy glass project. It will be amortised and credited to
income statement in 15 years, in accordance with the minimum operating period committed.
(ix)It represented the government supporting fund obtained by Yichang CSG from the acquiring of the assets and liabilities of
Crucible project of Yichang Hejing Photoelectric Ceramic Co., LTD. It will be amortised and credited to income statement in 15
years, in accordance with the minimum operating period committed.
(x)The allowance was granted by Shenzhen City Development and Reform Commission for the development of Group Coating
Film experimental project.The grant will be amortised and credited to income statement in the estimated useful life of the
relevant fixed assets.
(xi)The allowance was granted by Hubei Xianning Economic Development Management Center. According to the document Xian
Kai Cai Fa [2013] No. 3 issued by the Center, the allowance was used to support the development of Xianning CSG during from the
year 2012 to year 2015.
33. Share Capital
Unit: RMB
Changed in the report period (+,-)
Beginning of
Issuing of new Transferred End of term
term Bonus shares Others Sub-total
shares from reserves
Total of capital
2,075,335,560 2,075,335,560
shares
34. Special reserves
Statement on special reserve
31 December 2013 Addition Deduction 30 June 2014
Safety production cost 14,503,860 1,503,887 672,147 15,335,600
Yichang CSG is a high risk chemical production enterprise. Therefore, the Company appropriated such reserve in accordance with
relevant regulations.
86
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
35. Capital reserves
Unit: RMB
Items Beginning of term Increased this term Decreased this term End of term
Capital premium 1,345,264,670 7,660,730 1,337,603,940
Other reserve 46,102,218 10,478,290 56,580,508
Total 1,391,366,888 10,478,290 7,660,730 1,394,184,448
36. Surplus reserves
Unit: RMB
Items Beginning of term Increased this term Decreased this term End of term
Statutory surplus reserve 637,196,152 637,196,152
Discretionary surplus
127,852,568 127,852,568
reserve
Total 765,048,720 765,048,720
Statement on surplus reserves:
According to the PRC Corporation Law and the regulation of the Company, the Company must accrue statutory surplus
reserve at the amount of 10% of the net profit until when the accumulated statutory surplus reserve reached at least 50%
of the capital. After the Company obtained the approval from shareholders’ meeting, the statutory surplus reserve can
be used to make up the loss, or to increase the capital. The Company didn’t accrue statutory surplus reserve in the report
period. (Jan. to Jun. 2013: not accrued).
The appropriation to discretion surplus reserve shall be proposed by the board of the directors of the Company and
approved by the annual general meeting of the shareholders. The discretion can be utilized to offset the deficit or
increase the share capital. The Company did not appropriate to discretion surplus reserve during the report period.
37. Retained earnings
Unit: RMB
Items Amount Appropriation rate
Retained earnings at the end of last year before adjustment 3,803,574,842 --
Retained earnings at the beginning of this year after adjustment 3,803,574,842 --
Add: net profits belonging to equity holders of the Company 589,210,439 --
Dividends payable 622,600,668 41%
Retained earnings in the end 3,770,184,613 --
Statement on retained earnings:
As at 30 June 2014, undistributed profit of the Group included the surplus reserve of the subsidiaries attributable to the
Group amounting to RMB 657,236,398 (31 December 2013: RMB730,054,385), including: outflow of surplus reserves
RMB72,817,987 due to disposal of subsidiary (Jan. to Jun. 2013: nil)The Group and its subsidiaries didn’t appropriate
surplus reserve in the report period(Jan. to Jun. 2013: nil).
Pursuant to the resolution of board of directors of the Company on 14 April, 2014, the Company paid dividend of RMB
3 (tax inclusive) for each 10 shares, totaling RMB 622,600,668.
38. Revenue and cost
(1) Revenue and cost
Unit: RMB
87
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
Items Occurred in current term Occurred in previous term
Revenue from main operations 3,221,711,569 3,497,819,720
Revenue from other operations 40,970,103 39,146,063
Cost 2,438,593,004 2,514,678,053
(2) Business segments (on industries)
Unit: RMB
Occurred in current term Occurred in previous term
Name of industry
Revenue Cost Revenue Cost
Floating glass 1,825,845,072 1,525,918,567 1,784,653,053 1,407,769,078
Architectural glass 1,407,038,222 964,415,998 1,220,595,760 827,810,922
ITO glass 422,609,951 254,701,359
Solar panel and parts 397,771,248 339,993,538 463,748,119 402,827,242
Elimination -408,942,973 -411,376,355 -393,787,163 -389,292,054
Total 3,221,711,569 2,418,951,748 3,497,819,720 2,503,816,547
(3) Business segments (on products)
Unit: RMB
Occurred in current term Occurred in previous term
Name of product
Revenue Cost Revenue Cost
Floating glass 1,825,845,072 1,525,918,567 1,784,653,053 1,407,769,078
Architectural glass 1,407,038,222 964,415,998 1,220,595,760 827,810,922
ITO glass 422,609,951 254,701,359
Solar panel and parts 397,771,248 339,993,538 463,748,119 402,827,242
Elimination -408,942,973 -411,376,355 -393,787,163 -389,292,054
Total 3,221,711,569 2,418,951,748 3,497,819,720 2,503,816,547
(4) Business segments (on regions)
Unit: RMB
Occurred in current term Occurred in previous term
Name of regions
Revenue Cost Revenue Cost
Mainland 2,899,041,165 2,193,112,046 2,965,777,457 2,122,593,911
Hong Kong 34,873,594 21,621,628 151,875,658 91,960,330
Europe 87,392,381 68,040,061 196,142,438 161,236,626
Asia (other than Mainland and
117,272,638 80,049,856 122,796,161 86,374,068
Hong Kong)
North America 33,917,410 21,659,532 21,457,662 15,243,651
Australia 46,764,284 32,558,267 33,872,588 22,203,130
Other regions 2,450,097 1,910,358 5,897,756 4,204,831
Total 3,221,711,569 2,418,951,748 3,497,819,720 2,503,816,547
(5) Revenue from top five customers
Unit: RMB
Name of clients Revenue Percentage of the total revenue of the group (%)
88
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
The largest 167,747,655 5%
The second largest 137,906,869 4%
The third largest 90,737,319 3%
The fourth largest 57,576,990 2%
The fifth largest 56,568,190 2%
Total 510,537,023 16%
39. Tax and surcharge
Unit: RMB
Occurred in previous
Items Occurred in current term Rate
term
Business tax 71,030 72,029 turnover
City maintenance and
8,095,005 12,027,909 VAT and turnover tax
construction tax
Educational surcharge 7,772,638 10,674,534 VAT and turnover tax
Others 483,125 461,294
Total 16,421,798 23,235,766 --
40. Selling Expenses
Unit: RMB
Items Occurred in current term Occurred in previous term
Freight expenses 49,873,261 52,602,148
Employee benefit expenses 41,052,113 40,642,773
Entertainment expenses 4,370,807 5,279,616
Travelling expenses 4,620,055 6,562,464
Others 14,398,844 22,855,743
Total 114,315,080 127,942,744
41. Administrative Expenses
Unit: RMB
Items Occurred in current term Occurred in previous term
Employee benefit expenses 85,457,660 71,843,198
Research and development expenses 88,311,535 70,449,270
Taxation Expenses 25,509,353 23,221,128
Depreciation expenses 16,786,074 19,368,131
Amortisation of intangible assets 15,022,106 15,750,644
Office expenses 9,281,665 10,473,231
Canteen costs 3,309,614 6,102,289
Rental expense 2,460,865 3,710,312
Entertainment expenses 2,956,059 2,893,370
Travel expense 2,927,354 2,902,757
Water and electricity expense 2,504,210 2,430,521
Carriage expense 2,381,902 2,621,354
89
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
Others 23,285,623 32,247,847
Total 280,194,020 264,014,052
42. Finance Expenses
Unit: RMB
Items Occurred in current term Occurred in previous term
Interest expenses 99,923,026 115,875,945
Amortization of corporate bond issue
2,306,226 2,184,168
costs
Less:Interest income 1,841,127 3,501,854
Foreign exchange (gain)/loss 3,357,025 -4,257,152
Others 5,280,478 9,337,156
Total 109,025,628 119,638,263
43. Investment income
(1) Details of investment income
Unit: RMB
Items Occurred in current term Occurred in previous term
long-term equity investment accounted by
9,407,007
equity method
Gain from disposal of equity interests 311,247,064
Gain from disposal of available-for-sale
108,000 432,000
financial assets
Total 320,762,071 432,000
(2) Long-term equity investment gains on equity method
Unit: RMB
Company invested in Occurred in current Occurred in previous Causation of change
term term
Shenzhen CSG Display Technology Co. According to equity method from Dec.
8,554,688
Ltd(i) 2013
c According to equity method from
CSG (Australia) Co., Ltd 852,319
Dec. 2013 to March 2014
Total 9,407,007 --
Statement on the return of investment, repatriation of investment income which has significant restrictions should be disclosed.
If there is no such restriction should also explain
Investment income on Shenzhen CSG Display including Shenzhen's net book profit gained in the first half year, and the
amortization of its remaining stake in asset revaluation (including reversal of sold assets value of Shenzhen CSG Display).
Significant restrictions on repatriation of investment income do not exist.
44. Asset impairment loss
Unit: RMB
90
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
Items Occurred in current term Occurred in previous term
I. Provision for bad debts 2,383,377 2,652,061
II. Provision for inventories -425,506
Total 2,383,377 2,226,555
45. Non-operating income
(1) Non-operating income
Unit: RMB
Amount
of non-recurring
Items Occurred in current term Occurred in previous term
gain and loss
the report period
Total of gains from disposal of
619,737 3,520,238 619,737
non-current assets
Incl.：Gain on disposal of fixed assets 619,737 3,520,238 619,737
Government grants 44,447,997 26,586,020 44,447,997
Default income(a) 3,700 6,317,040 3,700
Compensation income 403,692 1,327,804 403,692
Others 11,808,128 10,540,475 11,808,128
Total 57,283,254 48,291,577 57,283,254
(2) Details of government grants
Unit: RMB
Occurred in Occurred in Related to assets or Whether belongs to
Items
current term previous term income extraordinary gains/loss
Government grants amortization 28,973,405 6,990,914 Related to assets Yes
Industry supporting fund 11,392,846 2,749,564 Related to income Yes
Interest subsidies for technical
740,800 7,550,559 Related to income Yes
transformation
Government awards fund 1,037,505 1,810,000 Related to income Yes
Energy saving subsidy 20,000 1,000,000 Related to income Yes
Subsidies for research and development 463,245 1,069,724 Related to income Yes
Others 1,820,196 5,415,259 Related to income Yes
Total 44,447,997 26,586,020 -- --
46. Non-operating expenses
Unit: RMB
Amount of non-recurring
Occurred in previous
Items Occurred in current term gain and loss included in
term
the report period
Total of loss from disposal of non-current
1,446,174 288,211
assets
Incl. Loss from disposal of fixed assets 1,446,174 288,211
Donation 20,000 80,000
91
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
Loss on compensations 8,000,000
Others 133,562 26,991
Total 1,599,736 8,395,202
47. Income tax expenses
Unit: RMB
Items Occurred in current term Occurred in previous term
Current income tax 53,996,024 112,228,490
Deferred income tax 7,001,382 1,499,725
Total 60,997,406 113,728,215
48. Calculation of basic earning per share and diluted earning per share
a.Basic earnings per share
Basic earnings per share is calculated by dividing the profit attributable to equity holders of the Company by the
weighted average number of ordinary shares in issue during the year.
Jan. to Jun. 2014 Jan. to Jun. 2013
Consolidated profit attributable to equity holders of the 589,210,439 353,719,746
Company
Weighted average number of ordinary shares in issue 2,075,335,560 2,075,335,560
Basic earnings per share 0.28 0.17
Including:
- Earnings per share for continuing operations 0.29 0.17
- Earnings per share for discontinued operations -0.01 -
b. diluted earning per share
Diluted earnings per share is calculated by dividing the profit attributable to equity holders of the Company, which is
adjusted according to potential dilutive shares, by the adjusted weighted average number of ordinary shares in issue
during the year. The Company had no potential dilutive outstanding equity instruments issued as at Jan. to Jun. 2013
(Jan. to Jun. 2012: Nil), accordingly the diluted earnings per share equals basic earnings per share.
49. Other comprehensive income
Unit: RMB
Items Occurred in current term Occurred in previous term
1. (Losses)/Gain from available for sale financial assets 13,140,000 -11,799,757
Less: effect of income tax resulted from available for sale
3,024,762 -2,716,247
financial assets
Subtotal 10,115,238 -9,083,510
4. Difference on translation of foreign currency financial
988,897 -1,185,709
statements
Subtotal 988,897 -1,185,709
Total 11,104,135 -10,269,219
92
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
50. Notes to the cash flow statement
(1)Cash received relating to other operating activities
Unit: RMB
Items Amount
Interest income 1,841,127
Government grant 15,474,592
Others 17,266,419
Total 34,582,138
(2)Cash paid relating to other operating activities
Unit: RMB
Items Amount
Transportation expense 48,709,437
Canteen cost 14,947,648
Office expenses 14,964,148
Travelling expenses 9,748,816
Entertainment expenses 7,708,778
Vehicle use fee 6,979,520
Bank fees 5,387,563
Consultant expenses 4,158,343
Insurance expenses 7,924,670
R&D fees 9,252,825
Repairing fees 6,562,243
Others 67,503,257
Total 203,847,248
(3)Cash received relating to other investing operating activities
Unit: RMB
Items Amount
Received insurance compensation 72,000,000
Government grants received relating to assets 10,788,804
Cash received for combination of China Southern Glass(Australia)
16,312,506
Limited
Total 99,101,310
(4)Cash paid relating to other investing activities
Unit: RMB
Items Amount
paid for current account of Shenzhen CSG(former subsidiary) 5,000,000
paid for deposit and margin 1,616,080
Total 6,616,080
93
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
(5)Cash received relating to other financing activities
Items Amount
Shenzhen CSG received come-and-go money from Golden Time 330,000,000
Received return money from Shenzhen CSG Display 19,610,000
Received financing deposit and margin 3,850,920
Total 353,460,920
51. Supplement notes of cash flow statement
(1) Supplement notes of cash flow statement
Unit: RMB
Supplementary Info. Amount of this term Amount of last term
1. Net profit adjusted to cash flow of business
-- --
operation
Net profit 617,196,948 411,830,510
Add: Provisions for assets impairment 2,383,377 2,226,555
Depreciation of fixed assets,
gas and petrol depreciation production goods 333,251,017 304,963,365
depreciation
Amortisation of intangible assets 15,022,106 15,750,644
(Gains)/Losses on disposal of fixed assets and
intangible assets 826,437 -3,232,027
(“-“ for gains)
Finance expenses
100,371,172 117,027,042
(“-“ for gains)
Investment
-320,762,071 -432,000
loss(“-“ for gains)
Decrease in deferred tax assets
10,205,895 4,971,543
(“-“ for increase)
Increase of deferred income tax liability (“-“ for
-3,204,513 -3,471,818
decrease)
Decrease of inventory (“-“ for increase) -64,473,835 -69,029,600
Decrease of operational receivable items (“-“ for
-92,874,548 -189,519,421
increase)
Increase of operational payable items (“-“ for
-17,013,778 116,173,919
decrease)
Cash flow generated by business operation, net 580,928,207 707,258,712
2. Major investment and financing operation not
-- --
involving with cash
3. Net change of cash and cash equivalents -- --
Balance of cash at period end 286,535,444 373,131,430
Less: Initial balance of cash 276,450,869 447,736,536
Net increasing of cash and cash equivalents 10,084,575 -74,605,106
94
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
(2) Related information of the acquisition or disposal of subsidiaries and other business units in the report
period
Supplementary Info. Amount of this term Amount of last term
Related information of the acquisition of subsidiaries and
-- --
other business units:
3.Net cash paid for the acquisition of subsidiaries and other
39,001,200
business units
Related information of the disposal of subsidiaries and
-- --
other business units:
1.Price of the disposal of subsidiaries and other business
918,000,000
units:
2.cash and cash equivalents received from the disposal
468,000,000
of subsidiaries and other business units
Less: cash and cash equivalents possessed by
4,839,877
subsidiaries and other business units
3.Net cash received from the disposal of subsidiaries and
463,160,123 20,000,000
other business units
(3) Composition of cash and cash equivalents
Unit: RMB
Items End of term Beginning of term
I. Cash 286,535,444 276,450,869
Incl: Cash on hand 22,746 32,108
Cash at bank without restriction 286,306,259 276,313,988
others without restriction 206,439 104,773
III. Balance of cash and cash equivalents at end of
286,535,444 276,450,869
term
VIII. Related party relationships and transactions
1. Joint ventures and associates of the Company
Type of Place of Legal Nature of the Registered Shareholding Proportion of Related Organization
Name
enterprise registration representative business capital ratio votes relationship code
1. Joint ventures
2. associates
CSG
Sino-foreign Shenzhen, the Manufacturin
Shenzhen Lu Wenhui 143,000,000 44.70% 44.70% 723033463
joint venture PRC g
Display
2. Related party transactions
(1)The purchase and sale of goods and receive services
The purchase and sale of goods and receive services
Unit: RMB
Amount of this term Amount of last term
Related party Pricing of related Proportion of Proportion of
Related party
transactions party transaction Amount similar transactions Amount similar transactions
accounted accounted
95
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
CSG
With reference to
Shenzhen Sales of fine glass 4,553,216 0.14%
the market price
Display
(2)Related guarantee
Statement on related guarantee
Nil.
3. Related receivables balance
Related receivables balance of the Company
Unit: RMB
End of term Beginning of term
Items Related party
Amount Provision for bad debts Amount Provision for bad debts
Accounts Receivable CSG Shenzhen Display 4,096,621 544,391
Other Receivable CSG Shenzhen Display 20,491,742
IX. Commitment Issues
1. Major commitment issues
Commitments relating to capital expenditure
As the balance sheet date, commitments relating to capital expenditure that has signed but not recognised in the
financial statement are analyzed below:
30/6/2014 31/12/2013
Property, plant and equipment 721,516,254 589,482,656
2. Fulfilling of commitments made in previous periods
The commitment relating to capital expenditures at 31 December 2013 has been fulfilled.
XI. Other material events
1.assets and liabilities measured by fair value
Unit: RMB
Profits and losses Changes in fair Impairment
Amount at the Amount at the end
Items value recognised in recognised in
beginning of term on the changes of term
in fair value the equity current year
Financial Assets
3. Available-for-sale
122,760,000 13,140,000 135,900,000
financial assets
Subtotal of Financial
122,760,000 13,140,000 135,900,000
Assets
Total 122,760,000 13,140,000 135,900,000
Financial liabilities 0 0
96
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
2. Financial asset and liabilities dominated in foreign currency
Unit: RMB
Profits and losses Changes in fair Impairment
Amount at the Amount at the end
Items value recognised in recognised in
beginning of term on the changes of term
in fair value the equity current year
Financial Assets
3. Foreign currency and
36,531,755 764,346 84,955,746
receivables
Subtotal of Financial
36,531,755 764,346 84,955,746
Assets
Financial liabilities 205,172,168 165,660,832
3. Others
The Group's business activities will face a variety of financial risks: market risk (including foreign exchange risk and
interest rate risk), credit risk and liquidity risk. The group's overall risk management plan for the financial market is not
predictable, and strive to reduce the potential adverse effects on the financial performance.
(1) Market risk
(a) Currency risk
The Group mainly operates in mainland with most of the transactions settled in RMB, however some of the export
business are settled in foreign currency. Besides, the recognized foreign currency assets, liabilities and foreign
transactions are still exposed to currency risk. (Those foreign currency assets and liabilities are mainly USD). The
Group monitors the scale of foreign currency transactions, foreign currency assets and liabilities, and adjust settlement
currency of export business, to furthest reduce the currency risk.
As at 30 June 2014, financial assets and liabilities denominated in foreign currency held by the Group are as below:
30 June 2014
Other
USD foreign currencies Total
Foreign Financial assets -
Cash at bank and on hand 8,626,699 20,544,784 29,171,483
Receivables 21,572,129 34,212,134 55,784,263
30,198,828 54,756,918 84,955,746
Foreign Financial liabilities -
Short-term borrowings 19,588,011 44,803,894 64,391,905
Payables 42,548,649 29,319,000 71,867,649
Long-term borrowings 6,328,278 - 6,328,278
Long-term borrowings due within 1 year 23,073,000 - 23,073,000
91,537,938 74,122,894 165,660,832
31 December 2013
Other
USD foreign currencies Total
97
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
Foreign financial assets -
Cash at bank and on hand 14,432,704 4,532,123 18,964,827
Receivables 16,420,171 1,146,757 17,566,928
30,852,875 5,678,880 36,531,755
Foreign financial liabilities -
Short-term borrowings 52,695,525 37,536,513 90,232,038
Payables 13,140,063 23,890,708 37,030,771
6,270,784 6,270,784
Long-term borrowings -
71,638,575 71,638,575
Non-current liabilities due within one year -
143,744,947 61,427,221 205,172,168
At 30 June 2014, should RMB had appreciated/depreciated by10% against USD, with all other variables held constant,
net profit for the year would have increased or decreased at RMB 4,653,093. (31 December, 2013: approximately RMB
9,595,826).
(b) Interest rate risk
The Group’s interest rate risk arises from the long-term interest-bearing debt such as long-term bank borrowings and
Corporate Bonds. Borrowings issued at variable rates expose the Group to cash flow interest-rate risk. Borrowings
issued at fixed rates expose the Group to fair value interest rate risk. The Group adjusts the proportion of fixed interest
rate debts and variable interest rate debts when the market environment changed. As at 30 June 2014, the Group’s
long-term interest-bearing debt at variable rates and fixed rates as illustrated below:
30 June 2014 31 December 2013
Debt at fixed rates 1,993,347,401 1,991,041,175
Debt at variable rates 275,992,783 302,904,204
2,269,340,184 2,293,945,379
The Group continued to monitor the Group's interest rates. Increase of interest rates will lead to increase of interest
expenses and have significant adverse effects on the Group. Therefore, the management monitor the latest market
situation and make timely adjustments, which includes increasing/decreasing long-term fixed rate debts at the
anticipation of increasing/decreasing interest rate.
In Jan. to Jun. 2014, if the floating interest rates had been 50 basis higher/lower with all other variables held constant,
net profit for the year would have decreased or increased at RMB464,969. (Jan. to Jun. 2012:approximately
RMB1,287,342).
(2) Credit risk
Credit risk is managed on group basis. Credit risk arises from deposits in banks, notes receivable, accounts receivable
and other receivables.
As the Group's bank deposits are mainly placed in the state-owned banks and other large and medium listed banks, the
management believe the credit risk should be limited and that no loss will occur due to event of default cause by those
banks. Furthermore, as the Group’s notes receivable are accepted by the state-owned banks and other large and medium
listed banks, the management believe the credit risk should be limited.
Besides, the Group has set relevant policies to control the credit risk exposure for accounts receivable, other receivables
and trade acceptance notes. The Group evaluates clients’ credit aptitude and sets relevant credit periods based on client’s
financial position, possibility of guaranty from the third party, credit records and other factors like the current situation
98
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
of the market. The Group supervises the clients’ credit records at regular intervals. For the clients who have a rotten
record, the Group will send payment reminders in written, shorten or cancel the credit period, etc. to ensure the Group’s
entire credit risk are under control.
(3) Liquidity risk
Cash flow forecasting is performed by each subsidiary of the Group and aggregated by the Group’s finance department
in its headquarters. The Group’s finance department at its headquarters monitors rolling forecasts of the Group's
short-term and long-term liquidity requirements to ensure it has sufficient cash and securities that are readily
convertible to cash to meet operational needs, while maintaining sufficient headroom on its undrawn committed
borrowing facilities from major financial institution so that the Group does not breach borrowing limits or covenants on
any of its borrowing facilities to meet the short-term and long-term liquidity requirements.
On 30 June 2014, the Group had net current liabilities of RMB 2,170 million and committed capital expenditures of
RMB 721 million. Management will implement the following measures to manage the liquidation risk:
(a) The Group will have steady cash inflows from operating activities;
(b) The Group will pay the debts that mature and finance the construction projects through the existing bank facilities.
(c) The Group will closely monitoring the payment of construction expenditure in terms of payment time and amount.
The financial assets and liabilities of the Group at the balance sheet date are analysed by their maturity date below at
their undiscounted contractual cash flows :
30 June 2014
Within 1 year 1 to 2 years 2 to 5 years Over 5 years Total
Financial Assets
Cash at bank and on hand 287,736,235 - - - 287,736,235
Receivables 620,691,807 - - - 620,691,807
Financial assets available - - 135,900,000 135,900,000
for sale
908,428,042 135,900,000 1,044,328,042
Financial liabilities -
Short-term borrowings 2,027,418,481 - - - 2,027,418,481
Payables 1,328,307,046 - - - 1,328,307,046
Long-term borrowing due 191,278,086 - - - 191,278,086
within 1year
Long-term borrowing 17,009,463 80,951,056 219,270,006 - 317,230,525
Bonds payable 106,600,000 2,106,600,000 - - 2,213,200,000
3,670,613,076 2,187,551,056 219,270,006 - 6,077,434,138
31 December 2013
Within 1 year 1 to 2 years 2 to 5 years Over 5 years Total
Financial Assets
Cash at bank and on hand 279,672,523 - - - 279,672,523
Receivables 569,686,196 - - - 569,686,196
Financial assets available - - - 122,760,000 122,760,000
for sale
849,358,719 - - 122,760,000 972,118,719
Financial liabilities -
Short-term borrowings 1,442,478,875 - - - 1,442,478,875
99
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
Payables 1,604,631,381 - - - 1,604,631,381
Long-term borrowing due 410,672,685 - - 410,672,685
within 1year
Long-term borrowing 18,779,624 107,359,153 218,049,563 6,358,322 350,546,662
Bonds payable 106,600,000 2,106,600,000 - - 2,213,200,000
3,583,162,565 2,213,959,153 218,049,563 6,358,322 6,021,529,603
(4) Fair value estimation
(a) Financial instruments not measured at fair value
Other than the available-for-sale financial asset, the Group’s financial assets and liabilities are not measured at fair value.
The carrying amount of the Group’s financial assets and liabilities approximate their fair value except the financial
liabilities as below:
30 June 2014 31 December 2013
carrying amount fair value carrying amount fair value
Bonds payable 1,993,347,401 2,002,700,000 1,991,041,175 1,985,000,000
1,993,347,401 2,002,700,000 1,991,041,175 1,985,000,000
The fair value of Corporate Bond traded in active markets is determined on quoted market prices at the balance sheet date.
(b) Financial instruments measured at fair value
Based on the lowest level input that is significant to the fair value measurement in its entirety, the fair value hierarchy
are divided into the following levels:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2: Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either
directly (that is, as prices) or indirectly (that is, derived from prices).
Level 3: Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs)
As at 30 June 2014, the financial assets measured at fair value by the above three levels are analysed below:
Level 1 Level 2 Level 3 Total
Financial assets held for trading-
Available-for-sale equity 135,900,000 - - 135,900,000
instruments
The fair value of the financial instrument that is traded in an active market is determined at the quoted price in the
active market. The fair value of financial instrument that is not traded in an active market is determined by using a
valuation technique. Valuation techniques include using prices of recent market transactions between knowledgeable
and willing parties, reference to the current fair value of another financial asset that is substantially the same with this
instrument, and discounted cash flow analysis. Inputs to valuation techniques include prepayment rates, rates of
estimated credit losses, and interest rates or discount rates.
As at 30 June 2014, the available-for-sale equity instrument is the investment in Golden Glass, the fair value of which
was determined based on the price in the observable market.
100
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
XII. Notes to Financial Statements of the Parent Company
1. Other account receivable
(1) Other receivable accounts
Unit: RMB
End of term Beginning of term
Book balance Bad debt provision Book balance Bad debt provision
Categories
Proportion Proportion Proportion Proportion
Amount Amount Amount Amount
% % % %
Other receivables provided bad debt provision in group
Related parties 3,670,699,973 100% 3,082,033,658 100%
Non-related parties 271,553 0% 5,431 2% 211,101 0% 4,222 2%
Sub-total of group 3,670,971,526 100% 5,431 0% 3,082,244,759 100% 4,222 0%
Total 3,670,971,526 -- 5,431 -- 3,082,244,759 -- 4,222 --
Statement on categories of other receivable accounts
Other receivable accounts with large amount and were provided bad debt provisions individually at end of period.
□Applicable √ Non-applicable
Other receivable accounts in the portfolio on which bad debt provisions were provided on age analyze basis
□Applicable √ Non-applicable
Other receivable accounts in the portfolio on which bad debt provisions were provided on percentage basis
√Applicable □ Non-applicable
Unit: RMB
Name of portfolio Book balance proportion Bad debt provision
Non-related parties 271,553 2% 5,431
Total 271,553 -- 5,431
Other receivable accounts in the portfolio on which bad debt provisions were provided on other basis
□Applicable √ Non-applicable
Other account receivable with minor amount but bad debt provision provided individually:
□Applicable √ Non-applicable
(2) Top 5 debtors of other receivable accounts
Unit: RMB
Portion in total other
Name of the companies Relation with the Company Amount Ages
receivables (%)
Yichang CSG Polysilicon Co,. Ltd. Subsidiaries 1,455,440,191 Within one year 40%
Wujiang CSG Glass Co. Ltd. Subsidiaries 659,031,049 Within one year 18%
Dongguan CSG Solar Glass Co,. Ltd. Subsidiaries 295,819,307 Within one year 8%
Chengdu CSG Glass Co. Ltd. Subsidiaries 200,920,409 Within one year 5%
Hebei CSG Glass Co. Ltd. Subsidiaries 188,754,273 Within one year 5%
Total -- 2,799,965,229 -- 76%
(3) Other accounts receivable from related parties
Unit: RMB
Relation with the Portion in total other receivables
Name of the companies Amount
(%)
101
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
Company
Yichang CSG Polysilicon Co,.
Subsidiaries 1,455,440,191 40%
Ltd.
Wujiang CSG Glass Co. Ltd. Subsidiaries 659,031,049 18%
Dongguan CSG Solar Glass Co,.
Subsidiaries 295,819,307 8%
Ltd.
Chengdu CSG Glass Co. Ltd. Subsidiaries 200,920,409 5%
Hebei CSG Glass Co. Ltd. Subsidiaries 188,754,273 5%
Xianning CSG Energy
Subsidiaries 155,255,095 4%
Conservation Glass Co. Ltd.
Jiangyou CSG Mining
Subsidiaries 153,069,440 4%
Development Co., Ltd.
Dongguan CSG Architectural
Subsidiaries 130,407,756 4%
Glass Co., Ltd.
Sichuan CSG Energy
Subsidiaries 114,865,909 3%
Conservation Glass Co. Ltd.
Others Subsidiaries 317,136,544 9%
Total -- 3,670,699,973 100%
102
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
2. Long-term equity investment
Unit: RMB
Percentag Voting Statement on
differences Impairmen
e of share power Cash dividend
Calculating Opening Closing between the Impairment t provision
Company invested in Initial costs Changed by of the current
basis balance balance in the in the shareholding provision provided
term
and voting this term
firm % firm % rights
Shenzhen CSG Float Glass Co. Ltd Cost method 705,736,250 714,685,255 -714,685,255
Chengdu CSG Glass Co. Ltd. Cost method 67,271,707 76,674,071 76,674,071 75% 75% Yes 106,204,641
Sichuan Energy Conservation Glass Yes
Cost method 32,242,653 40,290,583 40,290,583 75% 75% 60,445,475
Co. Ltd
Tianjin CSG Architectural Glass Yes
Cost method 133,500,000 144,404,554 144,404,554 100% 100% 36,512,811
Co. Ltd
Tianjin Energy Conservation Glass Yes
Cost method 96,000,000 98,498,420 98,498,420 100% 100% 42,953,099
Co. Ltd
Dongguan CSG Architectural Glass Yes
Cost method 180,000,000 193,618,971 193,618,971 100% 100% 73,052,140
Co. Ltd
Dongguan CSG Solar Glass Co. Ltd Cost method 278,753,465 300,401,145 1,045,681 301,446,826 100% 100% Yes
Yichang CSG Silicon Co. Ltd Cost method 562,489,000 577,043,114 55,914,930 632,958,044 100% 100% Yes
Yichang Nanbo Photoelectric Glass Yes
Cost method 76,523,200 98,597,200 58,864,000 157,461,200 73.58% 66.70%
Co., Ltd.
Wujiang CSG North-east Yes
Cost method 240,000,000 251,313,658 251,313,658 100% 100% 76,469,129
Architectural Glass Co. Ltd.
Dongguan CSG PV-tech Co. Ltd Cost method 301,276,564 308,122,789 308,122,789 100% 100% Yes 37,134,660
Hebei CSG Glass Co. Ltd. Cost method 253,354,574 261,998,368 261,998,368 100% 100% Yes 32,523,071
CSG (Hong Kong) Co. Ltd. Cost method 81,664,761 85,742,211 85,742,211 100% 100% Yes
Wujiang CSG Glass Co. Ltd. Cost method 461,011,271 462,179,564 462,179,564 100% 100% Yes
Hebei Shichuang Glass Co., Ltd. Cost method 243,000,000 243,062,801 243,062,801 100% 100% Yes 32,501,190
CSG (Australia) Co., Ltd Cost method 1,393,524 1,393,524 51% 51% Yes
Jiangyou CSG Mining Development Yes
Cost method 40,000,000 40,725,041 40,725,041 100% 100%
Co., Ltd
Xianning CSG Co.,Ltd. Cost method 176,250,000 177,041,817 177,041,817 100% 100% Yes
Xianning Energy Conservation Yes
Cost method 123,750,000 123,781,576 123,781,576 75% 75%
Glass Co. Ltd
103
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
Qingyuan CSG Energy saving new Yes
Cost method 300,000,000 300,185,609 300,185,609 100% 100%
material Co., Ltd
Others (i) Cost method 206,275,847 207,486,467 -41,045,678 166,440,789 100% 100% Yes 15,000,000
Total -- 4,559,099,292 4,705,853,214 -638,512,798 4,067,340,416 -- -- -- 15,000,000 497,796,216
Statement on long-term equity investment
As at 30 June 2014, included in the investments in subsidiaries were deemed investment costs of RMB 103,730,921, the fair value of the equity instruments of the Company
granted to the employee of the subsidiaries for their serviced provided to the subsidiaries for which the Company did not charge the subsidiaries. (31 December 2013:
112,679,926)
(i) Others mainly included subsidiaries of architectural segment, which located in Shenzhen but the production lines have moved to Dong guan. The operations of the
subsidiaries have discontinued. The Company has made provision against the long term investment in these subsidiaries.
Associated enterprise:
Movement
Initial
Cash Influence of
investment Net profit or loss Other
Additio dividend Capital Increased
cost(in 31 Dec. 2013 adjustment by Equity reduce 31 Dec. 2014
n announced by other
RMB 10 equity method Movement
to distribute shareholders
thousand)
Shenzhen
CSG
Display 18,633 313,935,670 -26,235,183 68,976,368 363,052 357,039,907
Technology
Co. Ltd
CSG
(Australia) AUD24.5 1,832,311 -444,999 852,318 -2,239,630 -
Co., Ltd
315,767,981 -26,680,182 69,828,686 363,052 -2,239,630 357,039,907
104
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
Difference between Shareholding ratio and Provision for Provision addition for
Accounting Method Shareholding ratio Proportion of votes
Proportion of votes bad debt impairment this year
Shenzhen
CSG Display
Equity Method 44.70% 44.70% NA - -
Technology
Co. Ltds
105
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
3. Revenue and costs
(1) Revenue
Unit: RMB
Items Occurred current term Occurred in previous term
main business income 0
Other business income 0 741,079
Total 0 741,079
Cost 0 41,575
4. Investment income
(1) Details of investment gains
Unit: RMB
Items Occurred in current term Occurred in previous term
Long-term equity investment gains on cost equity
497,796,216 536,744,456
method basis
Long-term equity investment gains on cost basis 69,828,686
Investment gains from disposal of long-term equity
203,314,745
investment
Investment gains in period of holding disposable
82,836 331,344
financial assets
other 519,763
Total 771,542,246 537,075,800
(2) Long-term equity investment gains on cost method
Unit: RMB
Occurred in current Occurred in previous
Company invested in Causation of change
term term
Chengdu CSG Glass Co. Ltd. 106,204,641 63,757,372 Profit increased
Wujiang CSG East China Architectural Glass
76,469,129 74,937,311 Profit increased
Co., Ltd.
Dongguan CSG Architectural Glass Co., Ltd. 73,052,140 78,628,396 Profit decreased
Sichuan CSG Energy Conservation Glass
60,445,475 56,554,983 Profit increased
Co., Ltd
Tianjin CSG Energy Conservation Glass
42,953,099 58,374,264 Profit decreased
Co., Ltd
Total 359,124,484 332,252,326 --
(3) Long-term equity investment gains on equity method
Unit: RMB
Company invested in Occurred in current Occurred in previous Causation of change
term term
Shenzhen CSG Display Technology Co. Ltd 68,976,368 cost method transfer to equity method
CSG (Australia) Co., Ltd 852,318 cost method transfer to equity method
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CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
Total 69,828,686 --
Statements on investment gains
Significant restrictions on repatriation of investment income do not exist.
5. Supplementary information of cash flow statement
Unit: RMB
Supplementary Info. Occurred in current term Occurred in previous term
1. Net profit adjusted to cash flow of business operation -- --
Net profit 684,157,291 504,555,067
Plus: Asset impairment provision 1,209 -774,291
Fixed asset depreciation, gas and petrol depreciation, production 3,367,529 1,062,536
goods depreciation
Amortizing of intangible assets 221,900 221,900
Amortization of long-term prepaid expenses 3,741
Financial expenses (“-“ for gains) 40,436,468 13,656,606
Loss from investment (“-“ for gains) -771,542,246 -537,075,800
Decrease of operational receivable items (“-“ for increase) -60,454 130,452
Increase of operational payable items (“-“ for decrease) -34,220,353 669,489
Cash flow generated by business operation, net -77,638,656 -17,550,300
2. Major investment and financing operation not involving with cash -- --
3. Net change of cash and cash equivalents -- --
Balance of cash at period end 143,401,415 118,356,560
Less: Initial balance of cash 129,337,516 139,915,851
Net increasing of cash and cash equivalents 14,063,899 -21,559,291
XII. Supplementary Information
1. Details of extraordinary profit (gains)/loss in the term
Unit: RMB
Item Amount Note
Gains/losses from the disposal of non-current asset (including the write-off
-826,437
that accrued for impairment of assets)
Governmental subsidy reckoned into current gains/losses (not including the
subsidy enjoyed in quota or ration according to national standards, which 44,447,997
are closely relevant to enterprise’s business)
Gains on disposal of available-for-sale financial assets, 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
108,000
business of the Company, and investment income from disposal of
transactional financial assets and liabilities and financial assets available for
sale
Other non-operating income and expenditure except for the aforementioned
12,061,958
items
It was mainly due to the
Other item that satisfied the definition of non-recurring gains and losses 308,895,397 Company sold 100% equity of
Shenzhen CSG Float Glass
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CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
Co., Ltd. and the added value
amortization of remaining
equity of Shenzhen CSG
Display Technology Co., Ltd.
Less: Impact on income tax 12,081,899
Impact on minority shareholders’ equity (post-tax) 6,329,502
Total 346,275,514 --
If there was government subsidies considered for recurring items in the current, should explain item by item disclosure that reason.
□Applicable √ Not applicable
2. Net income on asset ratio and earning per share
Unit: RMB
Weighted average net Earnings per share
Profit of the report period
income/asset ratio (%) Basic earnings per share Diluted earnings per share
Net profit attributable to common shareholders of the
7.38% 0.28 0.28
Company
Net profit attributable to the common owners of the
3.04% 0.12 0.12
PLC after deducting of non-recurring gains/losses
3. Irregular situation and causes of items in the financial statements
The financial statement line items which fluctuation is more than 30% (including 30%) compared with last year, or account 5% or
more of total assets for balance sheet items or 10% or more of total profit for income statement items are analyzed as below:
Items of balance sheet：
FSLIs 30 June 2014 31 December 2013 Increase/Decrease Rate Note
Account receivable 245,616,313 136,430,683 109,185,630 80% (1)
prepayment 119,246,734 73,378,329 45,868,405 63% (2)
other receivables 41,390,951 109,366,023 (67,975,072) -62% (3)
other current assets 187,292,116 1,021,464,095 (834,171,979) -82% (4)
Long-term equity investment 751,594,586 770,037,176 (18,442,590) -2% (5)
Fixed assets 9,208,002,553 7,979,937,683 1,228,064,870 15% (6)
Construction in process 1,964,018,775 2,762,418,100 (798,399,325) -29% (7)
Intangible assets 948,567,405 933,329,528 15,237,877 2% (8)
Deferred income tax assets 107,855,079 164,787,158 (56,932,079) -35% (9)
Short-term loans 1,958,295,208 1,424,743,800 533,551,408 37% (10)
notes payable 8,221,924 4,429,188 3,792,736 86% (11)
Employee salary payable 112,079,096 166,377,238 (54,298,142) -33% (12)
Tax payable 99,596,206 160,754,703 (61,158,497) -38% (13)
Interest payable 86,785,042 60,767,534 26,017,508 43% (14)
Other account payables 231,749,754 557,130,583 (325,380,829) -58% (15)
Due within one year of non 182,026,370 399,849,715 (217,823,345) -54% (16)
current liabilities
Notes:
1. The increase of accounts receivable was due to the growth of sales revenue of parts of subsidiaries.
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CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
2. The increase of prepayment was mainly because of the increase of prepayment for engineering equipment.
3. The decrease of other receivables was mainly because fire indemnity of Dongguan CSG PV, which was
receivable of the end of last period, was received in the report period.
4. The decrease of other current assets was mainly due to the long-term assets possessed by Shenzhen CSG at the
end of last period transferred into held-for-sale, and equity transfer procedure of Shenzhen CSG was
completed in the report period.
5. The decrease of long-term equity investment was mainly due to profit and net profit changes of CSG Shenzhen
Display, the Company's affiliated company.
6. The increase of fixed assets was mainly because construction in process of some subsidiaries was transferred
into fixed assets.
7. The decrease of construction in process was mainly because construction in process of part of subsidiaries was
transferred into fixed assets.
8. The increase of intangible assets increase was mainly due to outsourcing of intangible assets in some
subsidiaries and R&D of some subsidiaries changed into patents.
9. The decrease of deferred income tax was mainly because the deferred income tax assets recognized by
Shenzhen CSG reduced for the equity transfer procedure had been completed.
10. The increase of short-term loans was mainly due to the increase of issued short-term financing bills and bank
loans in the report period.
11. The increase of notes payable was mainly due to the increase in business clearing method.
12. The decrease of Employee salary payable was mainly because the annual management performance incentive
fund and year-end bonus of last year were paid in the report period.
13. The decrease of tax payable was mainly due to liquidation taxes in the report period.
14. The increase of interest payable was mainly due to increase in interest on bonds payable.
15. The decrease of other payables was mainly because the advance of Shenzhen CSG stock equity transfer was
counted in this item, while the equity transfer procedures was completed in the report period.
16. The decrease of non-current liabilities within one year was mainly because part of bank loan was due for
payment.
Income statement items:
Income statement items: Jan. to Jun. 2014 Jan. to Jun. 2013 Increase/Decrease Rate Note
Business income 3,262,681,672 3,536,965,783 (274,284,111) -8% (1)
Investment gains 320,762,071 432,000 320,330,071 74150% (2)
Income tax 60,997,406 113,728,215 (52,730,809) -46% (3)
Net profit 617,196,948 411,830,510 205,366,438 50% (4)
other comprehensive 11,104,135 (10,269,219) 21,373,354 (5)
income
Notes:
1. The decrease of business income mainly because CSG Shenzhen Display was excluded in the consolidation scope of the
Group due to part of the equity was sold at the end of last year.
2. The increase of investment income was mainly due to the transfer of Shenzhen CSG in the report period.
3. Mainly because CSG Shenzhen Display was excluded in the consolidation scope of the Group due to part of the
equity was sold at the end of last year. In addition, part of the subsidiaries obtained high-tech enterprise
certification with preferential tax rate this year.
4. The increase of net profit was mainly because investment income recognized by the transfer of Shenzhen CSG
in the report period.
5. The change of other comprehensive income was mainly because the fair value of Golden Glass equity held by
the Company changed.
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CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
Section IX. Documents available for Reference
I. Text of the Semi-annual Report carrying the legal representative’s signature;
II. Text of the financial report carrying the signatures and seals of the legal representative, C.F.O
and person in charge of financial organization;
III. All texts of the Company’s documents and original public notices disclosed in the papers
appointed by CSRC in the report period.
Board of Directors of
CSG Holding Co., Ltd.
5 August 2014
110
