Stock code: 000012; 200012 Short form of the stock: CSG A; CSG B Notice No.: 2020-062
Bond code: 149079 Short form of the bond：20 CSG 01
CSG HOLDING CO., LTD.
SUMMARY of SEMI-ANNUAL REPORT 2020
Chairman of the Board:
Chen Lin
August 2020
CSG Holding Co., Ltd. Summary of Semi-annual Report 2020
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 has no plans of cash dividend distribution, bonus shares being sent or converting
capital reserve into share capital.
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 securities 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
The report period (Jan. The same period of Increase/decrease
to Jun.2020) last year year-on-year
Operating income (RMB) 4,424,221,349 4,888,237,578 -9.49%
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CSG Holding Co., Ltd. Summary of Semi-annual Report 2020
Net profit attributable to shareholders of the listed company
391,466,723 377,342,401 3.74%
(RMB)
Net profit attributable to shareholders of the listed company
358,644,297 283,939,444 26.31%
after deducting non-recurring gains and losses (RMB)
Net cash flow arising from operating activities (RMB) 779,644,389 767,982,465 1.52%
Basic earnings per share (RMB/Share) 0.13 0.12 8.33%
Diluted earnings per share (RMB/Share) 0.13 0.12 8.33%
Weighted average ROE 4.08% 4.09% -0.01%
Increase/decrease in
End of this period End of last year this period-end over
that of last year-end
Total assets (RMB) 19,364,312,707 18,201,235,959 6.39%
Net assets attributable to shareholders of the listed company
9,671,644,531 9,495,588,878 1.85%
(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
147,420 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 of Number of share
Proportion Total shares held pledged/frozen
restricted
Full name of Shareholders Nature of shareholder of shares at the end of
shares Share
held (%) report period Amount
held status
Foresea Life Insurance Co., Ltd. – Domestic non state-owned
15.19% 466,386,874
HailiNiannian legal person
Foresea Life Insurance Co., Ltd. – Domestic non state-owned
3.86% 118,425,007
Universal Insurance Products legal person
Domestic non state-owned
Zhongshanruntian Investment Co., Ltd. 2.82% 86,633,447 Pledged 81,000,000
legal person
Foresea Life Insurance Co., Ltd. – Own Domestic non state-owned
2.11% 64,765,161
Fund legal person
Hong Kong Securities Clearing
Foreign legal person 1.93% 59,415,950
Company Limited
Central Huijin Asset Management Ltd. State-owned legal person 1.89% 57,915,488
China Galaxy International Securities
Foreign legal person 1.35% 41,349,778
(Hong Kong) Co., Limited
China Merchants Securities (HK) Co.,
State-owned legal person 1.06% 32,423,421
Limited
Shenzhen International Holdings (SZ)
State-owned legal person 0.95% 29,095,000
Limited
VANGUARD EMERGING MARKETS
Foreign legal person 0.62% 19,177,013
STOCK INDEX FUND
Among shareholders as listed above, Foresea Life Insurance Co., Ltd.-HailiNiannian,
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.,
Statement on associated relationship or Ltd. is a related legal person of Foresea Life Insurance Co., Ltd. and Chengtai Group Co.,
consistent action among the above Ltd., another related legal person of Foresea Life Insurance Co., Ltd, which held
shareholders: 40,187,904 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
N/A
margin business (if applicable)
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CSG Holding Co., Ltd. Summary of Semi-annual Report 2020
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
Does the company have corporate bonds that are publicly issued and listed on the stock exchange
and are not due on the approval date of the semi-annual report or are not fully cashed when they are
due
Yes
Short Maturity Bond balance Interest Way of repayment of principal and
Name Bond code Issue date
name date (RMB 0,000) rate interest
CSG Holding Co., Use simple interest to calculate the annual
Ltd. Public issue interest, excluding compound interest.
2020-3-24
of corporate bonds 20 CSG 149079 to 2023-3-25 199,165 6%
Interest is paid once a year, principal is
to qualified 01 repaid once due, and the last installment
2020-3-25
investors in 2020 of interest is paid together with the
(phase I) principal.
III. Business Discussion and Analysis
1. Brief introduction to operation situation in the report period
At the beginning of 2020, a sudden outbreak of COVID-19 brought about a stern test to the national
economy.
After the outbreak of the epidemic, the Company resolutely implemented the strategic deployment
of the CPC Central Committee, to start the "war time" command system, and to lay out epidemic
prevention and control measures. CSG and its subsidiaries firmly implemented the requirements of
the governments at all levels, and in accordance with the instructions of "Unswervingly
emphasizing epidemic prevention and going all out to secure production", on one hand, the
Company strictly controlled the epidemic prevention, and on the other hand, it paid close attention
to safe resumption of work and production. The Company has 6 subsidiaries in Hubei Province, the
region that was seriously affected by the epidemic, and the production and operation of those
subsidiaries were affected to a certain extent for their production, sales and logistics were greatly
affected by the epidemic. In order to fulfill the social responsibility of a listed company and meet
the urgent demand for protective materials during the epidemic period, the Company actively
responded to the call of the state and the government to switch to the production of masks and
disinfection products (84 disinfectant), by making use of over 30 years experience in manufacturing
technology, production and management and its own advantages in production capacity and
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CSG Holding Co., Ltd. Summary of Semi-annual Report 2020
resources, as well as overcoming the difficulties of insufficient equipment, staff and raw materials
during the epidemic period, and actively undertook the production task of the materials which
Shenzhen government reserved up for epidemic prevention and control. During the epidemic period,
the Company actively allocated and donated about RMB 15 million of funds and materials for
epidemic prevention and control to the places where the headquarter and its subsidiaries located,
which suffered a lot from the epidemic such as Hubei and Guangdong etc., and donated 10 million
self-made masks to Shenzhen government, to support the local governments in fighting against the
epidemic. As the Company was fully prepared for epidemic response, it timely firmed up the
differentiated operation strategy according to market changes, adjusted the operation direction, and
continued to reduce cost and increase efficiency. Although the operating income has decreased year
on year, the net profit achieved a positive growth. In the first half year of 2020, the Company
achieved operating income of RMB 4,424 million with a year-on-year decrease of 9.49%, net profit
of RMB 402 million, with a year-on-year increase of 3.91%, and net profit attributable to the parent
company of RMB 391 million, with a year-on-year increase of 3.74%; within which achieved a
year-on-year increase of 26.31% after deducting non-recurring gains and losses.
According to the development trend of the industry and its own advantages and characteristics, the
Company further clarified its development strategy, putting forward the strategy that it adheres to
the principle of making glass industry, its core business, bigger and stronger by polishing "Three
Pieces of Glass" (float glass, PV glass, electronic glass), building a brand (engineering glass),
taking advantage of its leading superiority in the business in terms of brand, technology and
management, improving the industrial scale through horizontal integration and vertical industrial
chain extension, exporting its technology and management to improve the quality of the industry,
turning the advantages of CSG's technology and management into the advantages of market share
and benefit contribution, and improving the status as a leading enterprise in the industry. During the
epidemic period, the Company signed an investment agreement with Fengyang County Government
of Anhui Province to build a manufacturing base of lightweight & high-permeability panel for solar
energy equipment. At the same time, it applied for non-public issuance of A shares to raise
construction funds, and soon obtained the approval of CSRC. At present, the issuance work is
actively promoted, which will lay a solid foundation for the Company's future strategic
development.
Glass industry:
In the face of adverse effects brought to the glass industry and the upstream and downstream
enterprises by the outbreak of COVID-19, the Company responded positively by adopting effective
measures, and the net profit of its glass industry bucked the trend and got increased. In the first half
year of 2020, the glass industry achieved operating income of RMB 3,592 million a year-on-year
decrease of 2.14% and net profit of RMB 450 million, with a year-on-year increase of 26.90%. The
detail is as follows:
Flat glass: Affected by the epidemic, the price and sales volume of float glass fluctuated on a
year-on-year base. In response to the periodic adjustment of the market, the Company took effective
measures including reducing costs through centralized procurement and development of new
suppliers, increasing the proportion of differentiated products and high value-added products to
enhance profitability, and achieved positive growth of net profit under the impact of the epidemic.
The solar glass achieved a significant increase in net profit year-on-year through actively seizing
export orders and increasing the strategy of double-glass products during the epidemic period,
which contributed significantly to the overall performance of the Group.
Architectural glass: The overseas market of architectural glass was fairly good in the first quarter,
but affected by the epidemic, the resumption of work was delayed compared with that in previous
years, and the logistics was also greatly affected. By going all out to resume production in the
second quarter, the overall business performance in the first half of the year was better than
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CSG Holding Co., Ltd. Summary of Semi-annual Report 2020
expected. Through the continuous implementation of differentiated product development and
promotion, equipment automation and informatization, cost reduction and efficiency improvement
and cost assessment, the architectural glass kept stable business operation. Under the impact of the
epidemic, it showed a strong operational ability in the face of severe market.
Electronic glass and display industry:
The Company has 5 manufacturing subsidiaries in the electronic glass and display industry, of
which 3 are located in Hubei Province. The resumption of work was delayed in the first quarter and
production, sales, logistics and other aspects were greatly affected by the epidemic, but gradually
returned to normal in the second quarter. In order to continuously expand the high-end market of
electronic glass and produce higher generation products, the Company took the initiative to suspend
production of Qingyuan phase I for technical transformation at the end of April this year. Therefore,
the production and sales volume of the industry decreased year-on-year. In the first half year of
2020, the electronic glass and display industry achieved operating income of RMB 405 million with
a year-on-year decrease of 20.56%, and net profit of RMB 54 million, with a year-on-year decrease
of 48.56%.
The Company firmly followed the development route of product upgrade and acceleration of import
substitution. After conquering the technology of the new generation of high aluminum electronic
glass, Xianning Photoelectric successfully achieved mass production of the second generation high
aluminum glass in the first half of 2020, and the excellent performance of the product can meet the
downstream terminal customers' higher standard requirements for basic materials in the fields of 3D
curved surface technology and 5G communication solutions, the technological level of which can
be comparable with foreign advanced level. At present, the product has been introduced to domestic
well-known mobile phone enterprises, and its market promotion is in smooth progress. At the same
time, the construction of one kiln and two lines for electronic glass in Qingyuan phase II project is
being accelerated, and it is expected to ignite at the end of September this year. Although affected
by the epidemic and production line upgrading in a short time, with the construction of new
production lines, the application of new technologies, the gradual increase of the proportion of
high-end products, and the acceleration of import substitution process, the future development of
electronic glass and display industry will continue to be better.
Solar Energy and other industries:
Silicon material base of solar energy industry located in Hubei Province, was seriously affected by
the epidemic. Apart from stopping production of polysilicon for technological upgrading, silicon
wafer was out of production before April, and gradually resumed production after April. As the
overseas PV market was also affected by the epidemic, the delivery speed of PV products slowed
down, but the production and sales gradually recovered in the second half of the second quarter and
the market gradually improved.
In order to respond to the epidemic and fulfill its social responsibility, the Company invested and
established Shenzhen CSG Medical Technology Co., Ltd. during the critical period of the epidemic,
which produced masks, and took the initiative to undertake the production task of the materials
which Shenzhen government reserved up for epidemic prevention and control At the same time, it
made use of the existing cell workshop purification workshop and PV cell beat-type production and
environmental purification production experience of Dongguan PV-tech Co., Ltd. to produce
anti-epidemic materials such as masks to meet the urgent market demand for protective materials,
and donated more than 10 million self-made masks to Shenzhen and other places, which achieved
good social and economic benefits.With the joint efforts of the Group, its solar energy and other
businesses achieved operating income of RMB 479 million and net profit of RMB 1 million in the
first half of 2020 under the influence of the epidemic.
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CSG Holding Co., Ltd. Summary of Semi-annual Report 2020
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
On July 5, 2017, the Ministry of Finance issued new Accounting Standards for Business Enterprises
No. 14 - Revenue (Accounting [2017] No. 22). According to the regulations, for the enterprises
listed both at home and abroad and enterprises listed abroad which prepared financial statements by
adopting international financial reporting standards or accounting standards for business enterprises,
the new accounting standard shall be implemented from January 1, 2018, while for other domestic
listed enterprises, it shall be implemented from January 1, 2020. The Group has adopted the above
standards and notices to prepare the semi-annual financial report 2020. The revised income standard
has no significant impact on the Croup and the Company.
Details can be found on the Company's Announcement of Accounting Policy Changes which was
published on Juchao website (www.cninfo.com.cn) on April 30, 2020.
(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.
(3)Particulars about the change of consolidation range compared with the annual financial
report of last year
√Applicable □ Not applicable
On January 7, 2020, the Group set up a subsidiary, CSG (Thailand) Co., Ltd. As of June 30, 2020,
the Group has invested USD 808,000. The Group owns 100% of its equity.
On February 5, 2020, the Group set up a subsidiary, Anhui CSG New Energy Materials Technology
Co., Ltd. As of June 30, 2020, the Group has invested RMB 3 million. The Group owns 100% of its
equity.
On February 8, 2020, the Group set up a subsidiary, Anhui CSG New Quartz Material Co., Ltd. As
of June 30, 2020, As of June 30, 2020, the Group has invested RMB 3 million. The Group owns
100% of its equity.
On February 10, 2020, the Group set up a subsidiary, Shenzhen CSG Medical Technology Co., Ltd.
As of June 30, 2020, As of June 30, 2020, the Group has invested RMB 20 million. The Group
owns 100% of its equity.
Board of Directors of
CSG Holding Co., Ltd.
24 August 2020
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