Stock code: 000012; 200012 Short form of the stock: CSG A; CSG B Notice No.: 2018-048
CSG HOLDING CO., LTD.
SUMMARY of SEMI-ANNUAL REPORT 2018
Chairman of the Board:
Chen Lin
August 2018
CSG Holding Co., Ltd. Summary of Semi-annual Report 2018
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.
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 Chen Chunyan
CSG Building, No.1 of the 6th Industrial CSG Building, No.1 of the 6th Industrial Road,
Contact address
Road, Shekou, Shenzhen, P. R.C. Shekou, Shenzhen, P. R.C.
Tel. (86)755-26860666 (86)755-26860666
E-mail securities@csgholding.com 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
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CSG Holding Co., Ltd. Summary of Semi-annual Report 2018
The report period The same period Increase/decrease year-on-year
(Jan. to Jun.2018) of last year (%)
Operating income (RMB) 5,471,169,598 4,944,337,861 10.66%
Net profit attributable to shareholders of the listed company
352,837,153 392,992,163 -10.22%
(RMB) [Note (1)]
Net profit attributable to shareholders of the listed company
after deducting non-recurring gains and losses (RMB) 334,049,718 360,945,244 -7.45%
[Note (2)]
Net cash flow arising from operating activities (RMB) 764,564,088 1,019,889,454 -25.03%
Basic earnings per share (RMB/Share) [Note (3)] 0.13 0.14 -7.14%
Diluted earnings per share (RMB/Share) [Note (4)] 0.12 0.14 -14.29%
Weighted average ROE [Note (5)] 4.09% 4.95% -0.86%
Increase/decrease in this
End of this period End of last year period-end over that of last
year-end (%)
Total assets (RMB) 20,524,811,756 19,535,002,368 5.07%
Net assets attributable to shareholders of the listed company
8,789,183,848 8,458,587,873 3.91%
(RMB)
Note (1): The data in the above table has included apportionment of equity incentive expense included in profit
and loss of RMB 93.81million from Jan. to Jun. 2018, which affected the net profit attributable to shareholders of
the listed company of RMB 82.55 million. In the period from Jan. to June 2018, after eliminating the impact of
equity incentive cost sharing, the net profit attributable to shareholders of the listed company was RMB 435.39
million, with a year-on-year increase of RMB 42.4 million and growth rate of 10.79%;
Note (2): After eliminating the impact of equity incentive cost sharing, net profit attributable to shareholders of the
listed company from Jan. to June 2018 was RMB 416.6 million with a year-on-year increase of RMB 55.66
million and growth rate of 15.42%;
Note (3): After eliminating the impact of equity incentive cost sharing, basic earnings per share from Jan. to June
2018 was RMB 0.16 per share, with year-on-year growth rate of 14.29%;
Note (4): After eliminating the impact of equity incentive cost sharing, diluted earnings per share from Jan. to
June 2018 was RMB 0.16 per share, with year-on-year growth rate of 14.29%;
Note (5): After eliminating the impact of equity incentive cost sharing, weighted average ROE from Jan. to June
2018 was 5.05%, with year-on-year growth rate of 0.1%.
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
153,651 0
at the end of the report period the voting right at end of report period (if applicable)
Shareholding of the top ten shareholders
Number of share
Proportion of Total shares held Amount of pledged/frozen
Full name of Shareholders Nature of shareholder shares held at the end of restricted
(%) report period shares held Share
Amount
status
Foresea Life Insurance Co., Ltd. Domestic non state-owned
14.84% 423,988,067
– Haili Niannian legal person
Foresea Life Insurance Co., Ltd. Domestic non state-owned
3.77% 107,659,097
– Universal Insurance Products legal person
Domestic non state-owned Pledged
Shenzhen Jushenghua Co., Ltd. 2.76% 78,757,679 78,757,652
legal person [Note]
Foresea Life Insurance Co., Ltd. Domestic non state-owned
2.06% 58,877,419
– Own Fund legal person
Central Huijin Asset State-owned legal person 1.84% 52,650,444
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CSG Holding Co., Ltd. Summary of Semi-annual Report 2018
Management Ltd.
China Galaxy International
Securities (Hong Kong) Co., Foreign legal person 1.31% 37,313,064
Limited
China Merchants Securities
State-owned legal person 1.02% 29,155,288
(HK) Co., Limited
Shenzhen International Holdings Domestic non state-owned
0.93% 26,450,000
(SZ) Limited legal person
Wang Heng Domestic natural person 0.63% 17,939,087
VANGUARD EMERGING
MARKETS STOCK INDEX Foreign legal person 0.61% 17,563,848
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 related legal
Statement on associated person of Foresea Life Insurance Co., Ltd. and Chengtai Group Co., Ltd., another related legal
relationship or consistent action person of Foresea Life Insurance Co., Ltd, which held 36,534,458 shares via China Galaxy
among the above shareholders: 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)
Note: On July 13, 2018, the Company received the notification letter from Shenzhen Jushenghua Co., Ltd, which
indicated that the 78,757,652 unrestricted A-shares of CSG pledged by Jushenghua to China Galaxy Securities Co.,
Ltd had been released on July 12, 2018 and the releasing procedures of pledge has been completed in Shenzhen
Branch of China Securities Depository and Clearing Co., Ltd. For detailed contents, please refer to the
Announcement of Releasing Pledge of Shares Held by Shareholders ((Notice No. : 2018-034) issued on July 14,
2018.
4. Changes of controlling shareholder or actual controller
Changes of controlling shareholder in the report period
□Applicable √ Not applicable
Changes of actual controller in the report period
□Applicable √ Not applicable
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
No
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CSG Holding Co., Ltd. Summary of Semi-annual Report 2018
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
Since 2018, China has continued to deepen the supply-side structural reform, steadily propelled the
tasks of de-capacity, de-leveraging, de-stocking, de-cost and addressing weakness, further promoted
replacing old growth drivers with new ones, and continuously improved the structure of economic
development.
In 2018, CSG, facing the complex and volatile economic environment and increasingly fierce
market competition, seized favorable market opportunities timely and coped with all kinds of
difficulties bravely to ensure the development of production and operation activities. Oriented by
market demand, the Company carefully analyzed its competitive advantages, took the initiative to
transform business mode and update technologies, and improved operating quality by fine
management to realize the advancement in stability. In the first half of 2018, the operation revenue
of the Company was RMB 5,471 million with a year-on-year increase of RMB 527 million and
growth rate of 10.66%. After eliminating the impact of equity incentive cost sharing, the Company
realized net profit of RMB 444 million, with a year-on-year increase of RMB 44 million and growth
rate of 10.87%, and net profit attributable to the parent company of RMB 435 million, with a
year-on-year increase of RMB 42 million and growth rate of 10.79%.
(I) Glass business
The State has continuously strengthened the structural adjustment of excess capacity, adopted strict
environmental protection control policies to eliminate backward production capacity, which
promoted the glass business to enter a benign operation cycle step by step, and optimized the supply
and demand structure. The Company spares no effort to grasp the development opportunities of all
its products in the process of supply-side structural reform.
Float glass: In the first half of 2018, the market of float glass continued the favorable trend of last
year. The Company adhered to the concept of high-quality, energy-saving and environmental
protection product. Based on its own technological quality advantages and capacity scale
advantages, it has kept strengthening internal management and intensive cultivation, improved
production technology level, co-ordinated sales management and quality services, facilitated
differentiation and high-end of products, consolidated its brand advantage, and improved customer
satisfaction. Consequently, the operating profit rose significantly and the revenue and net profit
increased by 17 % and 24% respectively.
Architectural glass: In 2018, due to the sustained high prices of bulk raw materials, especially
glass originals, and the growth of downstream fixed asset investment slowed down, the profitability
of architectural glass was squeezed. Under this pressure, the Company responded positively through
a series of measures such as adjusting its market strategy, strengthening industry synergy,
optimizing product structure, increasing overseas orders, intensifying communication with
customers, improving production efficiency, and guaranteed the profit growth, with revenue rising
by 6% year-on-year and net profit rising by 12%.
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CSG Holding Co., Ltd. Summary of Semi-annual Report 2018
(II) Solar energy business
In 2018, the State further promoted high-quality and orderly development of the photovoltaic
industry, and strove to cultivate a number of high-quality photovoltaic enterprises through the hands
of the market, so as to push the achieving of the connection to grid at an equal price to be achieved.
Besides, the investment and technical innovation in the photovoltaic industry have led to a
substantial increase in production capacity and a downward pressure on market price. In addition, as
the material manufacturing of photovoltaic industry is a heavy assets industry, as well as the energy
cost of Yichang Base of the group is higher than that of other companies in the same industry.
Consequently, the management has adopted various strategies to respond positively including
attaching importance to production technology innovation and product innovation, planning
technological upgrading, and enhanced the production capacity of high value-added products.
Meanwhile, In compliance with the guidance of industry put forward by the State, the Company
determined the connection to grid at an equal price as the cost control target and industrial
development goal and ultimately realized revenue increased by 3.54% year-on-year, and
accumulated net profit of RMB minus 45 million.
(III)Electronic glass and display device business
In the first half of 2018, with the accumulation of technology and the steady development of the
market, the performance of the electronic glass and display devices continued to improve. For the
sector of electronic glass, the company maintained its current capacity and its technology was
approaching world-class level. The high-aluminum products of Qingyuan CSG have entered into
the original chips market of cover plate of the domestic mainstream brands of mobile phone and
Yichang Photoelectric has successfully gained its expected technical objective in technical
innovation. With the trial production of Xianning Photoelectric, a new generation of high-aluminum
products will be on the market, and the competitive advantage in the high-end electronic glass
market will continue to strengthen. For the sector of display device, the Company has always
adhered to the high-end and smart product route. As it seized the market opportunities of vehicle
touch market in the first half year of 2018, the business shipment volumes of TP module increased
substantially, with gross margin rising significantly. The revenue and net profit of the electronic
glass and display device business sector rose by 19% year-on-year and 162% year-on-year
respectively in the first half of the year.
2. Matters relevant to financial report
(1) Particulars about the change of accounting policy, accounting estimate and accounting
method compared with last accounting period
□Applicable √ Not applicable
There was no change of accounting policy, accounting estimate and accounting method in the report
period.
(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 2018
(3)Particulars about the change of consolidation range compared with the annual financial
report of last year
√Applicable □ Not applicable
For details, please refer to “VIII. The changes of consolidation scope” of “Section VIII. Financial
Report” in the full text of Semi-annual Report 2018.
Board of Directors of
CSG Holding Co., Ltd.
28 August 2018
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