Stock code: 000012; 200012; Short form of the stock: CSG A; CSG B Notice No.: 2017-055
112022; 10 CSG 02
CSG HOLDING CO., LTD.
SUMMARY of SEMI-ANNUAL REPORT 2017
Chairman of the Board:
Chen Lin
August 2017
CSG Holding Co., Ltd. Summary of Semi-annual Report 2017
SUMMARY of SEMI-ANNUAL REPORT 2017
I. Important notice
The summary of semi-annual report is excerpted from the full text of the semi-annual report. In order to fully understand the
Company's operating achievements, financial standing and future development planning, investors should carefully read the full text
of the semi-annual report announced on the media designated by CSRC.
All directors were present the meeting of the Board for deliberating the semi-annual report of the Company in person.
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.
Notice of non-standard audit opinion
□Applicable √ Not applicable
Plans of profit distribution and share converted from capital reserve in the report period which was deliberated by the Board
□ Applicable √Not applicable
The Company had no plans of cash dividend distribution, bonus shares distribution or share converted from capital reserve in the first
half of the year.
Profit distribution plan of preferred shares in the report period which was approved by the Board
□Applicable √ Not applicable
II. The basic information of the Company
1. Company profile
Short form for share Southern Glass A、Southern Glass B Code for share 000012、200012
Listing stock exchange Shenzhen Stock Exchange
Person/Way to contact Secretary of the Board Representative of security affairs
Name Yang Xinyu
CSG Building, No.1 of the 6th Industrial
Contact address
Road, Shekou, Shenzhen, P. R.C.
Tel. (86)755-26860666
E-mail securities@csgholding.com
2. 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 year-on-year
(Jan. to Jun.2017) of last year (%)
Operating income (RMB) 4,944,337,861 4,228,165,642 16.94%
Net profit attributable to shareholders of the listed
392,992,163 466,883,254 -15.83%
company(RMB)
Net profit attributable to shareholders of the listed company
360,945,244 423,523,383 -14.78%
after deducting non-recurring gains and losses(RMB)
Net cash flow arising from operating activities(RMB) 1,019,889,454 1,046,720,349 -2.56%
Basic earnings per share (RMB/Share) 0.19 0.22 -13.64%
Diluted earnings per share (RMB/Share) 0.19 0.22 -13.64%
Decreased by1.05 percentage
Weighted average ROE (%) 4.94% 5.99%
points
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CSG Holding Co., Ltd. Summary of Semi-annual Report 2017
Increase/decrease in this
End of this period End of last year period-end over that of last
year-end (%)
Total assets (RMB) 17,930,281,613 16,979,235,630 5.60%
Net assets attributable to shareholder of listed company
8,083,359,314 7,812,335,004 3.47%
(RMB)
3. Amount of shareholders of the Company and particulars about shareholding
Unit: share
Total amount of shareholders Total amount of the preferred shareholders who have resumed
159,996 0
at the end of the report period the voting right at end of report period (if applicable)
Shareholding of the top ten shareholders
Amount Number of share
Total shares
Proportion Changes of Amount of pledged/frozen
Nature of held at the
Full name of Shareholders of shares in report restricte un-restricted
shareholder end of report Share
held (%) period d shares shares held Amount
period status
held
Domestic non
Foresea Life Insurance Co., Ltd.
state-owned 15.45% 320,595,892 0 320,595,892
– Haili Niannian
legal person
Domestic non
Foresea Life Insurance Co., Ltd.
state-owned 3.92% 81,405,744 0 81,405,744
– Universal Insurance Products
legal person
Domestic non
Shenzhen Jushenghua Co., Ltd. state-owned 2.87% 59,552,120 0 59,552,120 pledged 59,552,100
legal person
Domestic non
Foresea Life Insurance Co., Ltd.
state-owned 2.15% 44,519,788 0 44,519,788
– Own Fund
legal person
Central Huijin Asset State-owned
1.92% 39,811,300 0 39,811,300
Management Ltd. legal person
China North Industries State-owned
1.39% 28,800,000 0 28,800,000
Corporation legal person
China Galaxy International
Foreign legal
Securities (Hong Kong) Co., 1.35% 27,992,212 -700,000 27,992,212
person
Limited
China Merchants Securities State-owned -7,299,0
1.10% 22,817,998 22,817,998
(HK) Co., Limited legal person 57
Domestic non
Shenzhen International Holdings
state-owned 0.96% 20,000,000 0 20,000,000
(SZ) Limited
legal person
BBH A/C VANGUARD
Foreign legal
EMERGING MARKETS 0.64% 13,280,792 0 13,280,792
person
STOCK INDEX FUND
Among shareholders as listed above, Foresea Life Insurance Co., Ltd.-Haili Niannian, Foresea
Life Insurance Co., Ltd.-Universal Insurance Products, Foresea Life Insurance Co., Ltd.-Own
Fund are all held by Foresea Life Insurance Co., Ltd. Shenzhen Jushenghua Co., Ltd. is a
Statement on associated relationship related legal person of Foresea Life Insurance Co., Ltd. and Chengtai Group Co., Ltd., another
or consistent action among the related legal person of Foresea Life Insurance Co., Ltd, which held 27,625,299 shares via
above shareholders: 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 (if N/A
applicable)
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CSG Holding Co., Ltd. Summary of Semi-annual Report 2017
4. Changes of controlling shareholder or actual controller
Changes of controlling shareholder in the report period
□Applicable √ Not applicable
There was no change of controlling shareholder in the report period.
Changes of actual controller in the report period
□Applicable √ Not applicable
There was no change of actual controller in the report period.
5. The total number of shareholders of the Company's preferred shares and the shareholding of the top 10
preferred shareholders
□Applicable √ Not applicable
There were no preferred shares held by shareholders in the report period.
6. Corporate Bonds
Whether the Company had corporate bonds publicly issued and listed on the stock exchange which hadn’t matured or fully paid until
the approval day of the semi-annual report
Yes
(1) The basic information of corporate bonds
Bond balance (RMB
Name Short name Bond code Maturity date Interest rate
0,000)
Corporate bond
10 CSG 02 112022 2017-10-20 100,000 5.33%
in 2010 of CSG
(2) Financial indicators as of the end of the report period
RMB 0,000
Increase/decrease in this
Item End of this period End of last year period-end over that of last
year-end (%)
Assets liabilities ratio 53% 52% 1%
The report period (Jan. to Increase/decrease year-on-year
The same period of last year
Jun.2017) (%)
Interest coverage ratio of
7.15 8.21 -12.91%
EBITDA
III. Performance Discussion and Analysis
1. Brief introduction to operation situation in the report period
Whether the Company needs to comply with the disclosure requirements of specific industries
No
In the first half year of 2017, the global economic situation was turbulent, the recovery of the main economies remained weak, and
risk events occurred frequently. The FED increasing interest rates intensified the uncertainty of global economy. Under the
background of a slowdown in the global economic growth and increasing uncertainty, along with China’s economy structure
adjustment being further strengthened, industrial enterprises achieved profit growth, the measure of “Removing Excess Capacity”
achieved initial success, and the overall economy achieved a steady growth.
In the first half of 2017, CSG faced tremendous internal and external pressure, but under the leadership of the new management, the
business units advanced steadily in production and operation, seizing the favorable market opportunities while challenging the
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CSG Holding Co., Ltd. Summary of Semi-annual Report 2017
adverse market difficulties, and overfulfilled the business tasks of the first half of the year by improving internal efficiency, tapping
potentiality and increasing efficiency. In the first half year, the Company realized operating revenue of RMB 4,944 million, with a
year-on-year increase of RMB 716 million or 16.94%. The net profit was RMB 400 million, with a year-on-year decrease of RMB 65
million or 13.99%. And the net profit after deducting non-recurring gains and losses was RMB 361 million, with a year-on-year
decrease of RMB 63 million or 14.78%. Details of the production and operation of the Company were as follows:
(I) Glass industry
In which, the net profit of float glass was historically high. Affected by the national macro-control and environmental policy, float
glass prices stayed at a high level which has continued until the present day from the second half of last year. To take advantage of
the opportunity, the Company took measures of improving capacity, strengthening internal management, tapping potential and
increasing efficiency, promoting the differentiation of glass products and other measures to ensure the greatest achievement in the
favorable market timing.
The price of solar glass declined affected by the photovoltaic industry, which brought specified pressure to the management of the
Company. The Company actively developed new products, especially the market layout of thin glass and Double Glazed Glass Panel,
to resist the impact of falling prices on profits.
As architectural glass was enduring enormous pressure due to overall real estate investment growth slowing down, the Company
adopted various measures to expand sales volume for increasing its operating income. But affected by regulation and control policies
of upstream property industry, real estate developers generally implemented cost compression policies, together with the price rise of
raw float glass, which resulted in a decrease in profits. The Company took active measures to respond to the matter mentioned above,
including improving internal efficiency, tapping potential and increasing efficiency, being proactive in the external market to seize
more orders, layout of the housing market as well as promoting new products, to reduce the pressure on rising costs.
(II) Solar energy industry
After offset of consolidation in the first half year of 2017, solar energy industry realized operating revenue of RMB 1,388 million,
with a year-on-year increase of 9.74%. The net profit was RMB 106 million, with a year-on-year decrease of 46.74%.
In the first half of 2016, affected by “Expedited Installation by June 30”, the overall market of PV industry was rising rapidly. After
entering the second half year, as expedited installation subsided, the price showed a downward trend. The Company took measures of
technological transformation, improving production capacity, improving efficiency, tapping potential and increasing efficiency and
other measures to make up for the impact of price decline on its profits.
At the end of 2015, the Group established Shenzhen CSG PV Energy Co., Ltd. to develop PV power station and further improve
solar energy industrial chain (silicon material-silicon wafer- solar cell - module -PV power station). The Company is actively
promoting PV building integration project, currently focusing on market cultivation and customer development, and has initially
reached a strategic cooperation agreement with some well-known property developers. The development of PV power station
business will bring new income and profit growth point, and further improve the competitiveness of the Group in solar energy
industry.
(III)Electronic glass and display
After offset of consolidation in the first half year of 2017, electronic glass and display division realized operating revenue of RMB
367 million, with a year-on-year increase of RMB 277 million or 307.63%. The net profit was RMB 22.07 million, with a
year-on-year increase of RMB 25.47 million.
The Group further defined the product business positioning and technical route. Facing market opportunity, the Group gradually
occupied mobile toughened coated glass market through continuous technical improvement and reform and quality improvement. At
the same time, along with the commercial operation of Qingyuan high aluminum ultra-thin glass production line and gradual
improvement of product quality, the productivity and product line of the Group in the field of electronic glass will be further
improved and enriched, and preliminarily set up national strategic layout. At present, the construction of Xianning ultra-high
aluminum ultra-thin glass production line is proceeding smoothly. Civil works, craftwork and equipment installation are going
according to plan. Up until now, the project has entered the final stage and it will be ignited and enter into trial production within this
year.
2. Matters relevant to financial report
(1) Particulars about the change of accounting policy, accounting estimate and accounting method
compared with the annual financial report of last year
√Applicable □Not applicable
The Ministry of Finance promulgated the revised Accounting Standard for Business Enterprises No. 16 - Government Grants on May
10, 2017. The Company has adopted the above guidelines to prepare the semi-annual financial statements for 2017. It had no effect on
the Group's consolidated balance sheet and the Company's balance sheet as at 31 December 2016 and the consolidation and the
Company's income statement for the six months ended 30 June 2016.
(2) Particulars about retroactive adjustment or re-statement on major accounting error correction
□Applicable √ Not applicable
There was no retroactive adjustment or re-statement on major accounting error correction in the report period.
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CSG Holding Co., Ltd. Summary of Semi-annual Report 2017
(3)Particulars about the change of consolidation range compared with the annual financial report of last
year
√Applicable □Not applicable
The new subsidiary included in the consolidation scope in the period was Zhijiang CSG PV New Energy Co., Ltd.
Board of Directors of
CSG Holding Co., Ltd.
22 August 2017
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