CSG HOLDING CO., LTD.
THE THIRD QUARTER REPORT 2016
Chairman of the Board:
ZENG NAN
October 2016
CSG HOLDING CO., LTD. The Third Quarter Report 2016
Section I. Important Notice
Board of Directors and the Supervisory Committee of CSG Holding Co., Ltd. (hereinafter referred to as the
Company) and its directors, supervisors and senior executives hereby confirm that there are no any fictitious
statements, misleading statements, or important omissions carried in this report, and shall take all responsibilities
jointly and severally, for the facticity, accuracy and completeness of the whole contents.
All directors attended the meeting of the Board for deliberating the Third Quarter Report of the Company in
person.
Chairman of the Board of the Company Mr. Zeng Nan, CFO Mr. Luo Youming and principal of the financial
department Mr. Ding Jiuru hereby confirm the facticity, accuracy and completeness of the Financial Report in the
Third Quarter Report of 2016.
This report is prepared both in Chinese and English. Should there be any inconsistency between the Chinese and
English versions, the Chinese version shall prevail.
1
CSG HOLDING CO., LTD. The Third Quarter Report 2016
Section II Main accounting data and Changes in Shareholders
I. Main accounting data and financial indices
Whether retrospective adjustment has been carried out on financial reports of previous periods or not
□Yes √ No
Increase/decrease in
The end of current period The end of last year comparison with the end of
last year
Total assets (RMB ) 16,928,089,016 15,489,600,160 9.29%
Net assets attributable to shareholders of the
7,960,067,397 7,874,310,997 1.09%
Company (RMB )
Increase/decrease in From 1 January to Increase/decrease in
Current period comparison with the 30 September comparison with the
same period of last year 2016 same period of 2015
Operating revenues (RMB ) 2,293,975,948 11.68% 6,522,141,590 21.29%
Net profit attributable to shareholders of the
248,016,059 31.71% 714,899,313 81.41%
Company (RMB )
Net profit attributable to shareholders of the
Company after deducting extraordinary 221,542,609 221.30% 645,065,992 384.21%
gains and losses (RMB )
Net cash flows from operating activities
-- -- 1,592,198,960 133.75%
(RMB )
Basic earnings per share (RMB/Share) 0.12 33.33% 0.34 78.95%
Diluted earnings per share (RMB/Share) 0.12 33.33% 0.34 78.95%
Increased 0.79% on a Increased 4.12% on
Weighted average ROE (%) 3.12% 8.99%
year-over-year basis a year-over-year basis
Items and amounts of extraordinary profit (gains)/loss
√Applicable □ Not applicable
Unit: RMB
Amount from the beginning of year to the
Item Note
end of the report period
Gains/losses from the disposal of non-current asset (including the
1,344,125
write-off that accrued for impairment of assets)
Governmental subsidy reckoned into current gains/losses (not including 77,880,804
2
CSG HOLDING CO., LTD. The Third Quarter Report 2016
the subsidy enjoyed in quota or ration according to national standards,
which are closely relevant to enterprise’s business)
Other non-operating income and expenditure except for the
2,089,320
aforementioned items
Less: Impact on income tax 12,317,855
Impact on minority shareholders’ equity (post-tax) -836,927
Total 69,833,321 --
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
In the report period, it did not exist that 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.
II. Total of shareholders at the end of the report period and particulars about shareholdings
of the top ten shareholders
1. Total of common shareholders and particulars about the common shares held by the top ten
shareholders
Unit: Share
Total of shareholders at the end of the report period 138,994
Particulars about shares held by the top ten shareholders
Amount of Number of share
Proportion
Nature of Amount of restricted pledged/frozen
Name of shareholder of shares
shareholder shares held shares Share
held (%) Amount
held status
Domestic non
Foresea Life Insurance Co., Ltd. – Haili Niannian state-owned legal 15.45% 320,595,892 0
person
Domestic non
Foresea Life Insurance Co., Ltd. – Universal
state-owned legal 3.92% 81,405,744 0
Insurance Products
person
State-owned legal
China North Industries Corporation 2.92% 60,600,000 0
person
Domestic non
Shenzhen Jushenghua Co., Ltd. 2.87% 59,552,120 0 pledged 59,552,100
state-owned legal
3
CSG HOLDING CO., LTD. The Third Quarter Report 2016
person
Domestic non
Foresea Life Insurance Co., Ltd. – Own Fund state-owned legal 2.15% 44,519,788 0
person
State-owned legal
China Merchants Securities (HK) Co., Limited 2.07% 42,950,847 0
person
State-owned legal
Central Huijin Asset Management Ltd. 1.92% 39,811,300 0
person
Domestic non
Shenzhen International Holdings (SZ) Limited state-owned legal 1.52% 31,479,805 0
person
JT Asset Management – SPD BANK – JT Asset Domestic non
Management – Hengsheng New Power Grading state-owned legal 1.51% 31,334,707 0
No. 1 Asset Management Plan person
China Galaxy International Securities (Hong Foreign legal
1.38% 28,692,212 0
Kong) Co., Limited person
Particular about top ten shareholders with un-restrict shares held
Amount of un-restrict shares Type of shares
Shareholders’ name
held at Period-end Type Amount
Foresea Life Insurance Co., Ltd. – Haili Niannian 320,595,892 RMB ordinary shares 320,595,892
Foresea Life Insurance Co., Ltd. – Universal Insurance
81,405,744 RMB ordinary shares 81,405,744
Products
China North Industries Corporation 60,600,000 RMB ordinary shares 60,600,000
Shenzhen Jushenghua Co., Ltd. 59,552,120 RMB ordinary shares 59,552,120
Foresea Life Insurance Co., Ltd. – Own Fund 44,519,788 RMB ordinary shares 44,519,788
Domestically listed
China Merchants Securities (HK) Co., Limited 42,950,847 42,950,847
foreign shares
Central Huijin Asset Management Ltd. 39,811,300 RMB ordinary shares 39,811,300
Shenzhen International Holdings (SZ) Limited 31,479,805 RMB ordinary shares 31,479,805
JT Asset Management – SPD BANK – JT Asset
Management – Hengsheng New Power Grading No. 1 31,334,707 RMB ordinary shares 31,334,707
Asset Management Plan
China Galaxy International Securities (Hong Kong) Co., Domestically listed
28,692,212 28,692,212
Limited foreign shares
Among shareholders as listed above, Foresea Life Insurance Co.,
Statement on associated relationship or consistent action Ltd.-Haili Niannian, Foresea Life Insurance Co., Ltd.-Universal
among the above shareholders: Insurance Products, Foresea Life Insurance Co., Ltd.-Own Fund are all
held by Foresea Life Insurance Co., Ltd. Shenzhen Jushenghua Co., Ltd.
4
CSG HOLDING CO., LTD. The Third Quarter Report 2016
is a related legal person of Foresea Life Insurance Co., Ltd. and
Chengtai Group Co., Ltd., another related legal person of Foresea Life
Insurance Co., Ltd, which held 27,625,299 shares via China Galaxy
International Securities (Hong Kong) Co., Limited.
Except for the above-mentioned shareholders, It is unknown whether
other shareholders belong to related party or have associated relationship
regulated by the Management Regulation of Information Disclosure on
Change of Shareholding for Listed Companies.
Explanation on shareholders involving margin business
Nil
(if applicable)
Buy back deals carried out by top ten common shareholders, top ten shareholders un-restrict shares held in the report period
□Yes √ No
5
CSG HOLDING CO., LTD. The Third Quarter Report 2016
Section III. Important events
I. Particulars and explanations about significant changes in main accounting statements and
financial indices
√Applicable □ Not applicable
Unit: RMB
Item of balance sheet Note 30 September 2016 31 December 2015 Increased/Decreased amount Rate
Monetary capital (1) 306,994,416 578,834,520 -271,840,104 -47%
Notes receivable (2) 258,221,349 453,546,538 -195,325,189 -43%
Accounts receivable (3) 716,334,885 452,961,612 263,373,273 58%
Other receivables (4) 55,790,957 116,224,370 -60,433,413 -52%
Inventories (5) 493,296,607 350,425,732 142,870,875 41%
Other current assets (6) 178,033,091 118,359,117 59,673,974 50%
Long-term receivables (7) - 50,104,299 -50,104,299 -100%
long-term equity investment (8) - 668,210,253 -668,210,253 -100%
Development expenditure (9) 57,006,002 26,280,426 30,725,576 117%
Goodwill (10) 722,389,281 3,039,946 719,349,335 23663%
Long-term prepaid expenses (11) 1,066,021 1,597,865 -531,844 -33%
Notes payable (12) 24,114,869 8,000,000 16,114,869 201%
Accounts payable (13) 1,204,702,318 915,266,051 289,436,267 32%
Other payables (14) 214,652,481 143,021,055 71,631,426 50%
Non-current liabilities due (15)
73,280,000 239,000,000 -165,720,000 -69%
within one year
Differed income tax liability (16) 19,486,114 9,531,572 9,954,542 104%
Special reserves (17) 8,989,141 15,437,498 -6,448,357 -42%
Minor shareholders’ equity (18) 278,327,311 3,080,480 275,246,831 8935%
From January to From January to
Item of income statement Note Increased/Decreased amount Rate
September 2016 September 2015
Business tax and surcharges (19) -39,641,644 -25,176,730 -14,464,914 57%
Asset impairment loss (20) -2,012,347 -7,953,154 5,940,807 -75%
Investment gains (21) -14,264,359 141,088,467 -155,352,826 -110%
Non-operating expenses (22) -778,905 -264,924 -513,981 194%
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CSG HOLDING CO., LTD. The Third Quarter Report 2016
Income tax expenses (23) -122,021,126 -30,518,083 -91,503,043 300%
Net profit (24) 718,660,205 408,952,566 309,707,639 76%
Other comprehensive income (25) 705,555 80,593,025 -79,887,470 -99%
Note:
(1) The decrease of monetary capital was mainly due to the strengthening of control of monetary fund.
(2) The decrease of notes receivable was mainly due to the increase in note liquidity.
(3) The increase of accounts receivable was mainly due to the increase in accounts receivable of architectural glass industry.
(4) The decrease of other receivables was mainly due to the change in the scope of consolidation caused by the transfer of equity of
Yichang CSG Photoelectric Glass in the previous year, and the original internal current account was transferred to other receivables,
which was recovered this year.
(5) The increase of inventories was mainly due to the change in the scope of consolidation and the increase in inventories of solar
energy industry.
(6) The increase of other current assets was mainly due to the fact that Shenzhen Display was included in the scope of consolidation
in the report period.
(7)The decrease of long-term receivables was mainly due to the change in the scope of consolidation in the report period.
(8) The decrease of long-term equity investment was mainly due to the fact that Shenzhen Display was included in the scope of
consolidation during the report period, and the accounting method was changed from equity method to cost method.
(9) The increase of development expenditure was mainly due to the strengthening of research and development.
(10)The increase of goodwill was mainly due to the fact that Shenzhen Display which was originally accounted by equity method
was included in the scope of consolidation during the report period, and goodwill was generated in consolidated statements after the
acquisition.
(11) The decrease of long-term prepaid expenses was mainly due to the amortization in this period.
(12) The increase of notes payable was mainly due to the slight increase in new bills and lower initial balance.
(13) The increase of accounts payable was mainly due to the change in the scope of consolidation in the report period.
(14) The increase of other payables was mainly due to the change in the scope of consolidation in the report period.
(15) The decrease of non-current liabilities due within one year was mainly due to the repayment of part of the borrowings in this
period.
(16)The increase of differed income tax liability was mainly due to loss of trial production in some subsidiaries.
(17) The decrease of special reserves was mainly due to the increasing investment in production safety.
(18)The increase of minor shareholders’ equity was mainly due to the fact that Shenzhen Display was included in the scope of
consolidation during the report period, and the accounting method was changed from equity method to cost method.
(19) The increase of business tax and surcharges was mainly due to the increase of operating income for the year.
(20)The decrease of asset impairment loss was mainly due to the fact that the scope of consolidation was changed by the transfer of
equity of Yichang CSG Photoelectric Glass in the previous year, and the original internal current was transferred to other receivables,
which wrote off bad debt reserves this year.
(21)The decrease of investment income was mainly due to the disposal of available-for-sale financial assets and disposal of
subsidiaries in the previous year, which did not occur this year.
(22) The increase of non-operating expenses was mainly due to a slight increase in compensation expenses this year.
(23) The increase of income tax expenses was mainly due to the increase of profit in the report period.
(24) The increase of net profit was mainly due to the substantial rise in the profit of solar PV industry and flat glass industry in the
report period.
(25) The decrease of other comprehensive income was mainly due to the disposal of available-for-sale financial assets in the previous
year.
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CSG HOLDING CO., LTD. The Third Quarter Report 2016
II. The progress of material events and the impact and the analysis of solutions
√Applicable □ Not applicable
1. Short-term Financing Bills
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, agreed the application of issuing short-term financing bills with a total amount of no more than 40 percent of
the 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 valid term of one year at annual interest rate of 5.65%, which was redeemed on 14 March 2015. On
22 April 2015, the Company issued the 1st batch of short-term financing bills for the year of 2015 with a total amount of RMB 0.6
billion and annual interest rate of 4.28%, which was redeemed on 23 April 2016. On 16-17 September 2015, the Company issued the
2nd batch of short-term financing bills for the year of 2015 with a total amount of RMB 0.4 billion and annual interest rate of 3.50%,
which was redeemed on 14 September 2016.
For details, please refer to www.chinabond.com.cn and www.chinamoney.com.cn.
2. Ultra-short-term Financing Bills
On 10 December 2014, the First Extraordinary Shareholders’ General Meeting 2014 of CSG Holding Co., Ltd deliberated and
approved the proposal of application for registration and issuance of ultra-short-term financing bills with registered capital of RMB 4
billion at most and validity within 2 years. On 21 May 2015, National Association of Financial Market Institutional Investors
(NAFMII) held the 32nd registration meeting of 2015, in which NAFMII decided to accept the registration of the Company’s
ultra-short-term financing bills, amounting to RMB 4 billion and valid for two years. China Merchants Bank Co., Ltd., Shanghai
Pudong Development Bank Co., Ltd., Industrial Bank Co., Ltd., China CITIC Bank Co., Ltd. and China Agriculture Bank Co., Ltd.
were joint lead underwriters of these ultra-short-term financing bills, which could be issued by stages within period of validity of the
registration. On 12 June 2015, the Company issued the first batch of ultra-short-term financing bills for the year of 2015 with total
amount of RMB 0.8 billion and valid term of 270 days at the issuance rate of 4.25%, which was redeemed on 11 March 2016. On 13
October 2015, the Company issued the second batch of ultra-short-term financing bills for the year of 2015 with total amount of
RMB 1.1 billion and valid term of 270 days at the issuance rate of 3.81%, which was redeemed on 11 July 2016. On 10 March 2016,
the Company issued the first batch of ultra-short-term financing bills for the year of 2016 with total amount of RMB 0.8 billion and
valid term of 270 days at the issuance rate of 3.15%, which will be redeemed on 6 December 2016. On 17 May 2016, the Company
issued the second batch of ultra-short-term financing bills for the year of 2016 with total amount of RMB 0.9 billion and valid term
of 270 days at the issuance rate of 4.18%, which will be redeemed on 10 February 2017. On 2 August 2016, the Company issued the
third batch of ultra-short-term financing bills for the year of 2016 with total amount of RMB 0.6 billion and valid term of 270 days at
the issuance rate of 3.67%, which will be redeemed on 1 May 2017. On 1 September 2016, the Company issued the fourth batch of
ultra-short-term financing bills for the year of 2016 with total amount of RMB 0.5 billion and valid term of 270 days at the issuance
rate of 3.5%, which will be redeemed on 2 June 2017.
For details, please refer to www.chinabond.com.cn and www.chinamoney.com.cn.
8
CSG HOLDING CO., LTD. The Third Quarter Report 2016
III. Commitments from the Company or shareholder with over 5% shareholding in the report
period or continues to the report period
√ Applicable □ Not applicable
Type of Commit-m Commit- Implement-
Commitments Promisee Content of commitments
commitments ent date ment term ation
The Company has implemented share
merger reform in May 2006. Till June
2008, the share of the original
non-tradable shareholders which
holding over 5% total shares of the
Company had all released. Therein, the
original non-tradable shareholder
Shenzhen International Holdings (SZ)
The original
Limited and Xin Tong Chan Industrial By the end of
non-tradable
Development (Shenzhen) Co., Ltd. both the report
shareholder
are wholly-funded subsidiaries to period, the
Shenzhen
Shenzhen International Holdings above
Commitments International
Commitment Limited (hereinafter Shenzhen shareholders
for Holdings (SZ)
of share International for short) listed in Hong 2006-5-22 N/A of the
Share Merger Limited and Xin
reduciton Kong united stock exchange main Company had
Reform Tong Chan
board. Shenzhen International made strictly
Industrial
commitment that it would strictly carry fulfilled their
Development
out related regulations of Securities commitments.
(Shenzhen) Co.,
Law, Administration of the Takeover of
Ltd.
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.
By the end of
Foresea Life Insurance Co., Ltd., During
the report
Commitment Shenzhen Jushenghua Co., Ltd. and the period
period, the
Foresea Life of horizontal Chengtai Group Co., Ltd. issued when
above
Commitments in Insurance Co., competition, detailed report of equity change on 29 Foresea
shareholders
report of Ltd., Shenzhen affiliate June 2015, in which, they undertook to Life
2015-6-29 of the
acquisition or Jushenghua Co., Transaction keep independent from CSG in aspects remains
Company had
equity change Ltd. and Chengtai and of personnel, assets, finance, the largest
strictly
Group Co., Ltd. capital organization set-up and business as long sharehold
fulfilled their
occupation as Foresea Life Insurance remained the er of the
commitments.
largest shareholder of CSG. Meanwhile, Company
9
CSG HOLDING CO., LTD. The Third Quarter Report 2016
they made commitment on regularizing
related transaction and avoiding
industry competition.
Commitments in
assets
reorganization
The
non-public
offering plan
The Company’s shareholders, Foresea expired on
Foresea Life Life Insurance Co., Ltd.and China From July 2, 2016.
Commitments in
Insurance Co., Commitment North Industries Corporation, made Nov. 25, Prior to this,
initial public 2015-11-2
Ltd., China North of share commitments that they would not 2015 to the above
offering or 5
Industries reduciton reduce CSG's shares within six months Jul. 2, shareholders
re-financing
Corporation after the completion of non-public 2016 of the
offering of CSG from Nov. 25, 2015. Company had
strictly
fulfilled their
commitments.
Equity incentive
commitment
By the end of
The Company’s shareholders, Foresea
Foresea Life the report
Other Life Insurance Co., Ltd.and China From Jul.
Insurance Co., Commitment period, the
commitments North Industries Corporation, made 2015-07-1 15, 2015
for medium and Ltd., China North of share above
small commitments that they would not 5 to Jan. 15,
Industries reduciton commitments
shareholders reduce CSG's shares within six months 2016
Corporation had been
from July 15, 2015.
fulfilled.
Completed on
Yes
time(Y/N)
If the
commitments is
not fulfilled on
Not applicable
time, explain the
reasons and the
next work plan
IV. Prediction of business performance of 2016
Alert of loss or significant change in accumulative net profit from the beginning of year to the end of the next report period or
compared with the same period of last year, and statement of causations.
□ Applicable √Not applicable
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CSG HOLDING CO., LTD. The Third Quarter Report 2016
V. Securities investment
□ Applicable √Not applicable
The Company had no securities investment in the report period.
VI. Derivatives investment
□ Applicable √Not applicable
The Company had no derivatives investment in the report period.
VII. Reception of research, communication and interview in the report period
√ Applicable □ Not applicable
Time Way Type Basic information index of investigation
Details can be found in the Record Chart of the Investor Relation Activity
23 February 2016 Field research Institute
disclosed on Juchao website(www.cninfo.com.cn) on 24 February 2016.
Details can be found in the Record Chart of the Investor Relation Activity
30 March 2016 Field research Institute
disclosed on Juchao website(www.cninfo.com.cn) on 30 March 2016.
Institute Details can be found in the Record Chart of the Investor Relation Activity
25 April 2016 Field research
disclosed on Juchao website(www.cninfo.com.cn) on 26 April 2016.
Details can be found in the Record Chart of the Investor Relation Activity
24 May 2016 Field research Institute
disclosed on Juchao website(www.cninfo.com.cn) on 25 May 2016.
Details can be found in the Record Chart of the Investor Relation Activity
22 August 2016 Field research Institute
disclosed on Juchao website(www.cninfo.com.cn) on 23 August 2016.
VIII. Particulars about illegal external guarantee
□ Applicable √Not applicable
The Company had no illegal external guarantee in the report period.
IX. Particulars about non-operating fund of listed company which is occupied by controlling
shareholder and its affiliated enterprises
□ Applicable √ Not applicable
In the report period, it did not exist that non-operating fund of listed company was occupied by controlling shareholder and its
affiliated enterprises.
11
CSG HOLDING CO., LTD. The Third Quarter Report 2016
Section IV. Financial Report
(I) Financial Statements
1. Consolidated Balance Sheet
Prepared by CSG Holding Co., Ltd.
Unit: RMB
Items Ending balance Beginning balance
Current asset:
Monetary capital 306,994,416 578,834,520
Settlement provision
Outgoing call loan
Financial assets measured at fair value with variations
accounted into current income account
Derivative financial assets
Notes receivable 258,221,349 453,546,538
Account receivable 716,334,885 452,961,612
Prepayment 111,301,660 109,841,295
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance contracts receivable
Interest receivable
Dividend receivable
Other receivables 55,790,957 116,224,370
Repurchasing of financial assets
Inventories 493,296,607 350,425,732
Assets held for sales
Non-current asset due in 1 year
Other current asset 178,033,091 118,359,117
Total of current asset 2,119,972,965 2,180,193,184
Non-current assets
Loans and payment on other’s behalf disbursed
Available-for-sale financial asset
Expired investment in possess
12
CSG HOLDING CO., LTD. The Third Quarter Report 2016
Long-term receivables 50,104,299
Long-term equity investment 668,210,253
Investment real estates
Fixed assets 11,296,668,062 10,199,674,929
Construction in process 1,493,597,631 1,339,340,780
Engineering goods
Fixed asset disposal
Production physical assets
Gas & petrol
Intangible assets 1,086,431,938 846,238,811
Development expenditure 57,006,002 26,280,426
Goodwill 722,389,281 3,039,946
Long-term prepaid expenses 1,066,021 1,597,865
Differed income tax asset 98,224,310 110,336,216
Other non-current asset 52,732,806 64,583,451
Total of non-current assets 14,808,116,051 13,309,406,976
Total of assets 16,928,089,016 15,489,600,160
Current liabilities
Short-term loans 3,932,218,103 3,216,326,670
Loan from Central Bank
Deposit received and hold for others
Call loan received
Financial liabilities measured at fair value with variations
accounted into
Derivative financial liabilities
Notes payable 24,114,869 8,000,000
Accounts payable 1,204,702,318 915,266,051
Prepayment received 151,200,421 117,434,636
Selling of repurchased financial assets
Fees and commissions receivable
Employees’ wage payable 159,978,837 170,539,613
Tax payable 105,418,800 119,826,177
Interest payable 101,939,797 89,363,806
Dividend payable
13
CSG HOLDING CO., LTD. The Third Quarter Report 2016
Other payables 214,652,481 143,021,055
Reinsurance fee payable
Insurance contract provision
Entrusted trading of securities
Entrusted selling of securities
Liabilities held for sales
Non-current liabilities due within one year 73,280,000 239,000,000
Other current liability 300,000 300,000
Total of current liability 5,967,805,626 5,019,078,008
Non-current liabilities
Long-term borrowings 1,278,220,000 1,200,000,000
Bond payable 1,000,000,000 1,000,000,000
Including：preferred stock
Sustainable debt
Long-term payable
Long-term payable employees’ remuneration
Special payable
Anticipated liabilities
Differed income 424,182,568 383,599,103
Differed income tax liability 19,486,114 9,531,572
Other non-recurring liabilities
Total of non-current liabilities 2,721,888,682 2,593,130,675
Total of liability 8,689,694,308 7,612,208,683
Owners’ equity
Share capital 2,075,335,560 2,075,335,560
Other equity instruments
Including：preferred stock
Sustainable debt
Capital reserves 1,260,591,829 1,261,391,272
Less: Shares in stock
Other comprehensive income 3,673,327 2,967,772
Special reserves 8,989,141 15,437,498
Surplus reserves 881,972,330 881,972,330
Common risk provision
14
CSG HOLDING CO., LTD. The Third Quarter Report 2016
Undistributed profit 3,729,505,210 3,637,206,565
Total of owner’s equity belong to the parent company 7,960,067,397 7,874,310,997
Minor shareholders’ equity 278,327,311 3,080,480
Total of owners’ equity 8,238,394,708 7,877,391,477
Total of liability and owners’ equity 16,928,089,016 15,489,600,160
Legal Representative：Zeng Nan CFO：Luo Youming Manager of the financial department：Ding Jiuru
2. Balance Sheet of the Parent Company
Unit: RMB
Items Ending balance Beginning balance
Current asset:
Monetary capital 163,686,031 395,798,393
Financial assets measured at fair value with variations
accounted into current income account
Derivative financial assets
Notes receivable
Account receivable
Prepayment 492,191
Interest receivable
Dividend receivable
Other receivables 3,756,428,989 4,283,715,036
Inventories
Assets held for sales
Non-current asset due in 1 year
Other current asset
Total of current asset 3,920,115,020 4,680,005,620
Non-current assets
Available-for-sale financial asset
Expired investment in possess
Long-term receivables 2,016,705,100 2,139,873,923
Long-term equity investment 5,009,273,316 4,337,777,738
Investment real estates
Fixed assets 27,456,629 30,806,106
Construction in process
15
CSG HOLDING CO., LTD. The Third Quarter Report 2016
Engineering goods
Fixed asset disposal
Production physical assets
Gas & petrol
Intangible assets 1,506,349 1,762,037
Development expenditure
Goodwill
Long-term prepaid expenses 223,560 894,241
Differed income tax asset
Other non-current asset
Total of non-current assets 7,055,164,954 6,511,114,045
Total of assets 10,975,279,974 11,191,119,665
Current liabilities
Short-term loans 3,346,000,000 2,900,000,000
Financial liabilities measured at fair value with variations
accounted into
Derivative financial liabilities
Notes payable
Accounts payable 338,774
Prepayment received
Employees’ wage payable 34,689,200 38,240,000
Tax payable 3,424,973 39,469,245
Interest payable 12,158,723 79,906,647
Dividend payable
Other account payable 292,892,728 295,421,165
Liabilities held for sales
Non-current liabilities due within one year 239,000,000
Other current liability
Total of current liability 3,689,504,398 3,592,037,057
Non-current liabilities
Long-term borrowings 1,200,000,000 1,200,000,000
Bond payable 1,000,000,000 1,000,000,000
Including：preferred stock
Sustainable debt
16
CSG HOLDING CO., LTD. The Third Quarter Report 2016
Long-term payable
Long-term payable employees’ remuneration
Special payable
Anticipated liabilities
Differed income 12,412,230 10,543,800
Differed income tax liability
Other non-recurring liabilities
Total of non-current liabilities 2,212,412,230 2,210,543,800
Total of liability 5,901,916,628 5,802,580,857
Owners’ equity
Share capital 2,075,335,560 2,075,335,560
Other equity instruments
Including：preferred stock
Sustainable debt
Capital reserves 1,405,347,985 1,404,803,407
Less: Shares in stock
Other comprehensive income
Special reserves
Surplus reserves 896,517,690 896,517,690
Undistributed profit 696,162,111 1,011,882,151
Total of owners’ equity 5,073,363,346 5,388,538,808
Total of liability and owners’ equity 10,975,279,974 11,191,119,665
3. Consolidated Income Statement
Unit: RMB
Items Balance of this period Balance of last period
I. Total revenue 2,293,975,948 2,054,090,445
Incl. Business income 2,293,975,948 2,054,090,445
Interest income
Insurance fee earned
Fee and commission received
II. Total business cost 2,028,376,616 1,963,587,709
Incl. Business cost 1,653,218,094 1,629,310,349
Interest expense
17
CSG HOLDING CO., LTD. The Third Quarter Report 2016
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 surcharges 16,256,972 13,028,496
Sales expense 75,980,642 73,314,350
Administrative expense 205,673,948 166,634,462
Financial expenses 74,309,241 78,106,207
Asset impairment loss 2,937,719 3,193,845
Plus: gains from change of fair value (“-“for loss)
Investment gains (“-“ for loss) 98,634,017
Incl. Investment gains from affiliates
Exchange gains (“-“ for loss)
III. Operating profit (“-“ for loss) 265,599,332 189,136,753
Plus: non-operating income 32,054,790 23,450,221
Incl. Income from disposal of non-current assets 1,168,444 90,471
Less: non-operating expenses 117,277 239,392
Incl. Loss from disposal of non-current assets 52,978 26,894
IV. Gross profit (“-“ for loss) 297,536,845 212,347,582
Less: Income tax expenses 44,177,962 23,991,436
V. Net profit (“-“ for net loss) 253,358,883 188,356,146
Net profit attributable to the owners of parent company 248,016,059 188,302,026
Minor shareholders’ equity 5,342,824 54,120
VI. Net amount of other gains after tax 197,502 542,045
Net amount of other gains after tax attributable to owners
197,502 542,045
of parent company
(I) Other comprehensive income that will not be
reclassified into gains/losses afterward
1. Change of net liability or asset of beneficiary plan from
recalculating
2. The share of comprehensive income in invested
entities under equity method which can not be reclassified
into profit or loss
18
CSG HOLDING CO., LTD. The Third Quarter Report 2016
(II) Other comprehensive income items that will be
reclassified into gains/losses in the subsequent accounting 197,502 542,045
period
1. The share of comprehensive income in invested
entities under equity method which can be reclassified
into profit or loss afterward
2.Gains and losses from changes in fair value available
for sale financial assets
3.Held-to-maturity investments reclassified to gains and
losses of available for sale financial assets
4.The effective portion of cash flow hedges and losses
5.Translation differences in currency financial statements 197,502 542,045
6.Other
Net of profit of other comprehensive income attributable
to Minority shareholders’ equity
VII. Total of misc. incomes 253,556,385 188,898,191
Total of misc. incomes attributable to the owners of the
248,213,561 188,844,071
parent company
Total misc gains attributable to the minor shareholders 5,342,824 54,120
VIII. Earnings per share:
(I) Basic earnings per share 0.12 0.09
(II) Diluted earnings per share 0.12 0.09
Legal Representative：Zeng Nan CFO：Luo Youming Manager of the financial department：Ding Jiuru
4. Income Statement of the Parent Company
Unit: RMB
Items Balance of this period Balance of last period
I. Revenue 8,473,838 0
Less:business cost 0 0
Business tax and surcharges 2,935,353
Sales expense
Administrative expense 33,376,309 9,184,376
Financial expenses 4,164,111 16,576,949
Asset impairment loss 1,429 1,768,438
Plus: gains from change of fair value (“-“for loss)
19
CSG HOLDING CO., LTD. The Third Quarter Report 2016
Investment gains (“-“ for loss) 5,806,369 60,365,971
Incl. Investment gains from affiliates
II. Operating profit (“-“ for loss) -23,261,642 29,900,855
Plus: non-operating income 433,427 251,142
Incl. Income from disposal of non-current assets 720
Less: non-operating expenses
Incl. Loss from disposal of non-current assets
III. Gross profit (“-“ for loss) -22,828,215 30,151,997
Less: Income tax expenses
IV. Net profit (“-“ for net loss) -22,828,215 30,151,997
V. Net amount of other gains after tax
(I) Other comprehensive income that will not be
reclassified into gains/losses afterward
1. Change of net liability or asset of beneficiary plan from
recalculating
2. The share of comprehensive income in invested
entities under equity method which can not be reclassified
into profit or loss
(II) Other comprehensive income items that will be
reclassified into gains/losses in the subsequent accounting
period
1. The share of comprehensive income in invested
entities under equity method which can be reclassified
into profit or loss afterward
2.Gains and losses from changes in fair value available
for sale financial assets
3.Held-to-maturity investments reclassified to gains and
losses of available for sale financial assets
4.The effective portion of cash flow hedges and losses
5.Translation differences in currency financial statements
6.Other
VI. Total of comprehensive income -22,828,215 30,151,997
VII. Earnings per share:
(I) Basic earnings per share
(II) Diluted earnings per share
20
CSG HOLDING CO., LTD. The Third Quarter Report 2016
5. Consolidated income statement for Jan.-Sept. 2016
Unit: RMB
Items Balance of this period Balance of last period
I. Total revenue 6,522,141,590 5,377,129,947
Incl. Business income 6,522,141,590 5,377,129,947
Interest income
Insurance fee earned
Fee and commission received
II. Total business cost 5,748,510,149 5,178,089,033
Incl. Business cost 4,730,036,597 4,275,331,059
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 surcharges 39,641,644 25,176,730
Sales expense 204,545,473 209,776,868
Administrative expense 564,611,454 449,002,551
Financial expenses 207,662,634 210,848,671
Asset impairment loss 2,012,347 7,953,154
Plus: gains from change of fair value (“-“for loss)
Investment gains (“-“ for loss) -14,264,359 141,088,467
Incl. Investment gains from affiliates
Exchange gains (“-“ for loss)
III. Operating profit (“-“ for loss) 759,367,082 340,129,381
Plus: non-operating income 82,093,154 99,606,192
Incl. Income from disposal of non-current assets 1,417,086 2,765,909
Less: non-operating expenses 778,905 264,924
Incl. Loss from disposal of non-current assets 72,962 45,649
IV. Gross profit (“-“ for loss) 840,681,331 439,470,649
Less: Income tax expenses 122,021,126 30,518,083
V. Net profit (“-“ for net loss) 718,660,205 408,952,566
21
CSG HOLDING CO., LTD. The Third Quarter Report 2016
Net profit attributable to the owners of parent company 714,899,313 394,069,370
Minor shareholders’ equity 3,760,892 14,883,196
VI. Net amount of other comprehensive income after tax 705,555 80,593,025
Net amount of other gains after tax attributable to owners
705,555 80,763,572
of parent company
(I) Other comprehensive income that will not be
reclassified into gains/losses afterward
1. Change of net liability or asset of beneficiary plan from
recalculating
2. The share of comprehensive income in invested
entities under equity method which can not be reclassified
into profit or loss
(II) Other comprehensive income items that will be
reclassified into gains/losses in the subsequent accounting 705,555 80,763,572
period
1. The share of comprehensive income in invested
entities under equity method which can be reclassified
into profit or loss afterward
2.Gains and losses from changes in fair value available
80,536,743
for sale financial assets
3.Held-to-maturity investments reclassified to gains and
losses of available for sale financial assets
4.The effective portion of cash flow hedges and losses
5.Translation differences in currency financial statements 705,555 226,829
6.Other
Net of profit of other comprehensive income attributable
-170,547
to Minority shareholders’ equity
VII. Total of comprehensive income 719,365,760 489,545,591
Total of misc. incomes attributable to the owners of the
715,604,868 474,832,942
parent company
Total misc gains attributable to the minor shareholders 3,760,892 14,712,649
VIII. Earnings per share:
(I) Basic earnings per share 0.34 0.19
(II) Diluted earnings per share 0.34 0.19
6. Income statement of the Parent Company for Jan.-Sept. 2016
Unit: RMB
22
CSG HOLDING CO., LTD. The Third Quarter Report 2016
Items Balance of this period Balance of last period
I. Revenue 9,551,232 0
Less: business cost 60,334 0
Business tax and surcharges 2,935,353
Sales expense
Administrative expense 95,283,586 27,148,538
Financial expenses 15,427,933 87,940,430
Asset impairment loss -1,768,813 1,775,482
Plus: gains from change of fair value (“-“for loss)
Investment gains (“-“ for loss) 405,086,976 596,485,329
Incl. Investment gains from affiliates
II. Operating profit (“-“ for loss) 305,635,168 476,685,526
Plus: non-operating income 1,199,607 22,485,156
Incl. Income from disposal of non-current assets 2,520 450
Less: non-operating expenses
Incl. Loss from disposal of non-current assets
III. Gross profit (“-“ for loss) 306,834,775 499,170,682
Less: Income tax expenses -45,852 -20,048,352
IV. Net profit (“-“ for net loss) 306,880,627 519,219,034
V. Net amount of other comprehensive income after tax 79,790,488
(I) Other comprehensive income that will not be
reclassified into gains/losses afterward
1. Change of net liability or asset of beneficiary plan from
recalculating
2. The share of comprehensive income in invested
entities under equity method which can not be reclassified
into profit or loss
(II) Other comprehensive income items that will be
reclassified into gains/losses in the subsequent accounting 79,790,488
period
1. The share of comprehensive income in invested
entities under equity method which can be reclassified
into profit or loss afterward
2.Gains and losses from changes in fair value available
79,790,488
for sale financial assets
3.Held-to-maturity investments reclassified to gains and
23
CSG HOLDING CO., LTD. The Third Quarter Report 2016
losses of available for sale financial assets
4.The effective portion of cash flow hedges and losses
5.Translation differences in currency financial statements
6.Other
VI. Total of comprehensive income 306,880,627 599,009,522
VII. Earnings per share:
(I) Basic earnings per share
(II) Diluted earnings per share
7. Consolidated Cash Flow Statement for Jan.-Sept. 2016
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
7,467,528,727 5,851,005,595
services
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 disposal of the financial assets measured
by fair value with the changes included in the current
gains and losses
Cash received as interest, processing fee, and commission
Net increase of inter-bank fund received
Net increase of repurchasing business
Tax returned 40,275,710 38,071,725
Other cash received from business operation 68,764,580 54,800,446
Sub-total of cash inflow from business activities 7,576,569,017 5,943,877,766
Cash paid for purchasing of merchandise and services 4,361,925,084 3,871,963,653
Net increase of client trade and advance
Net increase of savings in central bank and brother
24
CSG HOLDING CO., LTD. The Third Quarter Report 2016
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 798,870,174 655,327,681
Taxes paid 480,049,004 386,087,119
Other cash paid for business activities 343,525,795 349,353,425
Sub-total of cash outflow from business activities 5,984,370,057 5,262,731,878
Net cash flow generated by business operation 1,592,198,960 681,145,888
II. Cash flow generated by investing
Cash received from investment retrieving 153,447,723
Cash received as investment profit 75,837,593
Net cash retrieved from disposal of fixed assets,
2,390,680 2,765,132
intangible assets, and other long-term assets
Net cash received from disposal of subsidiaries or other
150,000,000 240,531,849
operational units
Other investment-related cash received 40,170,833 13,714,126
Sub-total of cash inflow due to investment activities 192,561,513 486,296,423
Cash paid for construction of fixed assets, intangible
804,655,768 833,899,175
assets and other long-term assets
Cash paid as investment 4,250,000 296,706,050
Net increase of loan against pledge
Net cash received from subsidiaries and other operational
507,974,099
units
Other cash paid for investment activities 24,021,775 8,020,998
Sub-total of cash outflow due to investment activities 1,340,901,642 1,138,626,223
Net cash flow generated by investment -1,148,340,129 -652,329,800
III. Cash flow generated by financing
Cash received as investment 14,500,000
Incl. Cash received as investment from minor
14,500,000
shareholders
Cash received as loans 7,959,211,141 5,770,024,625
Cash received from bond placing
Other financing-related cash received 118,403,662 527,258
Subtotal of cash inflow from financing activities 8,092,114,803 5,770,551,883
25
CSG HOLDING CO., LTD. The Third Quarter Report 2016
Cash to repay debts 7,874,819,707 4,469,686,738
Cash paid as dividend, profit, or interests 816,685,415 1,227,084,591
Incl. Dividend and profit paid by subsidiaries to minor
41,417,700
shareholders
Other cash paid for financing activities 120,833,724 84,144,165
Subtotal of cash outflow due to financing activities 8,812,338,846 5,780,915,494
Net cash flow generated by financing -720,224,043 -10,363,611
IV. Influence of exchange rate alternation on cash and
2,793,736 -641,180
cash equivalents
V. Net increase of cash and cash equivalents -273,571,476 17,811,297
Plus: Balance of cash and cash equivalents at the
574,744,877 156,838,261
beginning of term
VI. Balance of cash and cash equivalents at the end of
301,173,401 174,649,558
term
8. Cash Flow Statement of the Parent Company for Jan.-Sept. 2016
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 3,384,187 2,421,705
Sub-total of cash inflow from business activities 3,384,187 2,421,705
Cash paid for purchasing of merchandise and services 251,167
Cash paid to staffs or paid for staffs 85,566,148 55,165,169
Taxes paid 39,724,582 3,267,191
Other cash paid for business activities 8,827,849 9,174,545
Sub-total of cash outflow from business activities 134,118,579 67,858,072
Net cash flow generated by business operation -130,734,392 -65,436,367
II. Cash flow generated by investing
Cash received from investment retrieving 145,377,279
Cash received as investment profit 395,236,932 571,220,176
Net cash retrieved from disposal of fixed assets,
2,520 450
intangible assets, and other long-term assets
26
CSG HOLDING CO., LTD. The Third Quarter Report 2016
Net cash received from disposal of subsidiaries or other
258,801,535
operational units
Other investment-related cash received 3,000,000
Sub-total of cash inflow due to investment activities 398,239,452 975,399,440
Cash paid for construction of fixed assets, intangible
280,145 1,062,202
assets and other long-term assets
Cash paid as investment 196,755,000 45,791,650
Net cash received from subsidiaries and other operational
464,345,956
units
Other cash paid for investment activities 4,229,882
Sub-total of cash outflow due to investment activities 661,381,101 51,083,734
Net cash flow generated by investment -263,141,649 924,315,706
III. Cash flow generated by financing
Cash received as investment
Cash received as loans 7,375,164,309 5,255,447,602
Cash received from bond placing
Other financing-related cash received 663,060,790
Subtotal of cash inflow from financing activities 8,038,225,099 5,255,447,602
Cash to repay debts 7,168,164,309 3,896,297,602
Cash paid as dividend, profit, or interests 705,743,777 1,146,102,939
Other cash paid for financing activities 1,075,248,268
Subtotal of cash outflow due to financing activities 7,873,908,086 6,117,648,809
Net cash flow generated by financing 164,317,013 -862,201,207
IV. Influence of exchange rate alternation on cash and
-2,565,241 -5,576,023
cash equivalents
V. Net increase of cash and cash equivalents -232,124,269 -8,897,891
Plus: Balance of cash and cash equivalents at the
394,606,753 67,898,286
beginning of term
VI. Balance of cash and cash equivalents at the end of
162,482,484 59,000,395
term
II .Auditor’s Report
Whether the third quarter report has been audited or not
□Yes √No
The third quarter report of the Company has not been audited.
27
CSG HOLDING CO., LTD. The Third Quarter Report 2016
Board of Directors of
CSG Holding Co., Ltd.
28 October 2016
28
