CSG HOLDING CO., LTD.
SEMI-ANNUAL REPORT 2022
Chairman of the Board:
CHEN LIN
August 2022
CSG Semi-annual Report 2022
Section I. Important Notice, Content and Paraphrase
Board of Directors and the Supervisory Committee of CSG Holding Co., Ltd. (hereinafter referred
to as the Company) and its directors, supervisors and senior executives hereby confirm that there
are no any fictitious statements, misleading statements, or important omissions carried in this report,
and shall take all responsibilities, individual and/or joint, for the facticity, accuracy and
completeness of the whole contents.
Ms. Chen Lin, person in charge of the Company, Ms. Wang Wenxin, responsible person in charge of
accounting and Ms. Wang Wenxin, principal of the financial department (accounting officer)
confirm that the Financial Report enclosed in the semi-annual report of the Company is true,
accurate and complete.
All directors were present at the meeting of the Board for deliberating the semi-annual report of the
Company in person.
The future plans, development strategies and other forward-looking statements mentioned in this
report do not constitute a material commitment of the Company to investors. Investors and relevant
parties should pay attention to investment risks, and understand the differences between plans,
forecasts and commitments.
The Company has described the risk factors and countermeasures of the Company's future
development in detail in this report. Please refer to Section III. Management Discussion and
Analysis
The Company has no plans of cash dividend distribution, bonus shares being sent or converting
capital reserve into share capital.
This report is prepared both in Chinese and English. Should there be any inconsistency between the
Chinese and English versions, the Chinese version shall prevail.
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CSG Semi-annual Report 2022
Content
Section I. Important Notice, Content and Paraphrase.................................................... 1
Section II. Company Profile & Financial Highlights..................................................... 5
Section III. Business Discussion and Analysis...............................................................8
Section IV. Corporate Governance............................................................................... 33
Section V. Environment and social responsibility........................................................ 35
Section VI. Important Events........................................................................................43
Section VII. Changes in Shares and Particulars about Shareholders...........................59
Section VIII. Preferred shares.......................................................................................65
Section IX. Bonds......................................................................................................... 66
Section X. Financial Report..........................................................................................69
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Documents available for Reference
.
I. Text of the financial report carrying the signatures and seals of the person in charge of the
Company, the responsible person in charge of accounting and the principal of the financial
department (accounting officer).
II. All texts of the Company’s documents and original public notices disclosed in the papers
appointed by CSRC in the report period.
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CSG Semi-annual Report 2022
Paraphrase
Item Refers to Content
Company, the Company, CSG Group or the Group Refers to CSG Holding Co., Ltd.
Foresea Life Refers to Foresea Life Insurance Co., Ltd.
Flat glass Refers to Including float glass, photovoltaic glass
Ultra-thin electronic glass Refers to The electronic glass with thickness between 0.1~1.1mm
Second-generation energy-saving glass Refers to Double silver coated glass
Third-generation energy-saving glass Refers to Triple silver coated glass
AG glass Refers to Anti-glare glass
AF glass Refers to Anti-fingerprint glass
AR glass Refers to Anti-reflection glass
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CSG Semi-annual Report 2022
Section II. Company Profile & Financial Highlights
I. Company Profile
Short form of the stock Southern Glass A、Southern Glass B Stock code 000012、200012
Listing stock exchange Shenzhen Stock Exchange
Legal Chinese name of the Company 中国南玻集团股份有限公司
Abbr. of legal Chinese name of the Company 南玻集团
Legal English name of the Company CSG Holding Co., Ltd.
Abbr. of legal English name of the Company CSG
Legal Representative Chen Lin
II. Person/Way to contact
Secretary of the Board Representative of securities affairs
Wang Wenxin (perform as Secretary of
Name Chen Chunyan
the Board)
CSG Building, No.1 of the 6th Industrial CSG Building, No.1 of the 6th Industrial
Contact address
Road, Shekou, Shenzhen, P. R.C. Road, Shekou, Shenzhen, P. R.C.
Tel. (86)755-26860666 (86)755-26860666
Fax. (86)755-26860685 (86)755-26860685
E-mail securities@csgholding.com securities@csgholding.com
III. Other information
1. Way of contact
Whether registered address, office address and their postal codes, website address and email address of the Company changed in the
report period or not
□ Applicable √Not applicable
The registered address, office address and their postal codes, website address and email address of the Company did not change in
the report period. More details can be found in Annual Report 2021.
2. Information disclosure and preparation place
Whether information disclosure and preparation place changed in the report period or not
□Applicable √ Not applicable
The newspapers designated by the Company for information disclosure, the website designated by CSRC for disclosing semi-annual
report and preparation place of semi-annual report did not change in the report period. More details can be found in Annual Report
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CSG Semi-annual Report 2022
2021.
3. Other relevant information
Whether other relevant information changed in the report period or not
□Applicable √ Not applicable
IV. Main accounting data and financial indexes
Whether it has retroactive adjustment or re-statement on previous accounting data
□Yes √No
The report period (Jan. to Increase/decrease
The same period of last year
Jun.2022) year-on-year
Operating income (RMB) 6,519,216,676 6,614,802,538 -1.45%
Net profit attributable to shareholders of
1,001,174,398 1,352,517,465 -25.98%
the listed company (RMB)
Net profit attributable to shareholders of
the listed company after deducting 887,594,820 1,329,814,528 -33.25%
non-recurring gains and losses (RMB)
Net cash flow arising from operating
902,803,121 1,698,245,375 -46.84%
activities (RMB)
Basic earnings per share (RMB/Share) 0.33 0.44 -25%
Diluted earnings per share (RMB/Share) 0.33 0.44 -25%
Weighted average ROE 8.61% 12.60% -3.99%
Increase/decrease in this
End of this period End of last year period-end over that of last
year-end
Total assets (RMB) 22,471,177,776 19,939,364,510 12.70%
Net assets attributable to shareholders of
11,817,420,869 11,429,661,046 3.39%
the listed company (RMB)
V. Difference of accounting data under domestic and overseas accounting standards
1. Differences of the net profit and net assets disclosed in financial report prepared under international and
Chinese accounting standards
□ Applicable √ Not applicable
No such differences in the report period.
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CSG Semi-annual Report 2022
2. Difference of the net profit and net assets disclosed in financial report prepared under overseas and
Chinese accounting standards
□ Applicable √ Not applicable
No such differences in the report period.
VI. Items and amounts of non-recurring gains and losses
√Applicable□Not applicable
Unit: RMB
Item Amount Note
Gains/losses from the disposal of non-current asset (including the write-off that
12,745,461
accrued for impairment of assets)
Governmental subsidy reckoned into current gains/losses (not including the subsidy
enjoyed in quota or ration according to national standards, which are closely 97,547,070
relevant to enterprise’s business)
In addition to the effective hedging business related to the normal business of the
company, the profit and loss from changes in fair value arising from holding
trading financial assets and trading financial liabilities, as well as the investment 16,413,695
income obtained from the disposal of trading financial assets, trading financial
liabilities and available for sale financial assets
Reversal of provision for impairment of receivables that have been individually
1,409,310
tested for impairment
Other non-operating income and expenditure except for the aforementioned items 11,472,908
Less: Impact on income tax 23,294,919
Impact on minority shareholders’ equity (post-tax) 2,713,947
Total 113,579,578 --
Particulars about other gains and losses that meet the definition of non-recurring gains and losses:
□ Applicable √ Not applicable
It did not exist that other profit and loss items met the definition of non-recurring gains and losses.
Explanation of the non-recurring gains and losses listed in the Explanatory Announcement No.1 on Information Disclosure for
Companies Offering their Securities to the Public - Non-recurring Gains and Losses as recurring gains and losses
□ Applicable √ Not applicable
It did not exist that non-recurring profit and loss items listed in the Explanatory Announcement No. 1 on Information Disclosure of
Companies Offering Securities to the Public - Non-recurring Profit and Loss were defined as recurring profit and loss items in the
report period.
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CSG Semi-annual Report 2022
Section III. Business Discussion and Analysis
I. Main business of the company during the report period
(I)Main business of the Company
CSG is a leading domestic brand of energy-saving glass and a renowned brand of solar PV products and display devices. Its products
and technologies are well-known at home and abroad. Its main business includes R&D, manufacturing and sales of high-quality float
glass, architectural glass, photovoltaic glass, new materials and information display products such as ultra-thin electronic glass and
display devices, as well as renewable energy products such as silicon materials, photovoltaic cells and modules, and it provides
one-stop services for photovoltaic power station project development, construction, operation and maintenance, etc.
Flat glass business
The flat glass business of CSG includes float glass and photovoltaic glass. The production mode, business strategy, technical
requirements and development direction of the two businesses have similarities and considerable differences due to the difference of
industrial chain environment, industry development stage and policy environment.
In the field of float glass, CSG has 10 advanced float glass production lines in Dongguan, Chengdu, Langfang, Wujiang and
Xianning, and has quartz sand raw material processing and production bases in Jiangyou, Sichuan Province, Qingyuan, Guangdong
Province and Fengyang, Anhui Province. The annual output of various types of high-grade float glass is about 2.47 million tons,
covering high-quality float glass and ultra-white float glass with various thicknesses and specifications of 1.3-25mm. The
performance indicators of the products have reached the leading domestic level. CSG float glass products are all high-end products
that can be directly used for downstream deep processing, and the proportion of differentiated glass products with special
specifications and special application scenarios such as ultra-white, ultra-thin, and ultra-thick is large, which are widely used in
high-end building curtain walls, decoration and furniture, mirrors, car windshields, scanners and copiers, home appliance panels,
display protection and other application fields with high requirements on glass quality. CSG has established long-term and stable
business cooperation with many well-known processing enterprises.
The profit level of the float glass business is generally positively correlated with the level of real estate completion data, and is also
affected by multiple factors such as current energy, raw material prices, product structure, and enterprise management level.
Differentiated glass products have higher added value due to specific application scenarios, higher production process difficulties,
stable demand, and relatively proactive pricing by manufacturers. The Company focuses on improving management efficiency,
improving the level of lean production of conventional products, firmly implementing the differentiated competition strategy,
carefully cultivating and developing differentiated product markets, and continuously increasing the proportion of differentiated
product sales, so as to continuously consolidate and enhance the industry competitiveness of the Company's float glass business.
In the first half of 2022, the completion of the real estate industry dropped significantly compared with the same period in recent
years, the domestic downstream architectural glass market demand slowed down in stages, the production and sales rate of float glass
manufacturers declined, and the price of float glass declined; at the same time, affected by epidemic control, Russia Ukraine conflict,
inflation and other factors, the prices of raw materials and fuels have rose sharply, and the profit level of float glass dropped
significantly compared with the previous year. However, under the macro background of "Stable Growth" of the national economy
and the realization of "Double Carbon" goals, the demand for high-quality differentiated products and energy-saving products
remains stable.
In the field of photovoltaic glass, CSG has taken the lead in entering the field of photovoltaic glass manufacturing in China since
2005. Based on independent research and development, the Company has formed a full closed-loop production capacity from
photovoltaic glass original sheet production to deep processing. It has two photovoltaic rolled glass original sheet production lines
and complementary photovoltaic glass deep processing production lines in Dongguan and Wujiang, with an annual output of about
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CSG Semi-annual Report 2022
430,000 tons of photovoltaic rolled glass original sheets and a photovoltaic glass deep processing capacity of 72 million square
meters per year, and its products cover deep-processing products with a variety of thicknesses of 2-4mm. In the first quarter of 2022,
Dongguan photovoltaic glass furnace was upgraded as planned, and was ignited in August 2022.
The Company is firmly optimistic about the long-term development of the photovoltaic new energy industry, seizes the golden
opportunity of industrial development, aims at the first echelon of the industry, and makes up for the shortcomings of the Group's
photovoltaic glass business production capacity and large-scale layout. The Company is building four photovoltaic glass production
kilns and complementary processing lines with a daily melting capacity of 1,200 tons in Fengyang and one photovoltaic glass
production line and complementary processing line with a daily melting capacity of 1,200 tons in Xianning. Among them, Fengyang
No. 1 kiln has been ignited in May 2022, and Fengyang No. 2 kiln has been ignited in August 2022, and the construction of other
production lines is progressing in an orderly manner as planned.The release of production capacity will greatly enhance the
Company's industry status. In addition, with the approval of the Board of Directors, the Company plans to build two photovoltaic
glass production kilns and complementary processing lines with a daily melting capacity of 1,200 tons in Beihai City, Guangxi
Province. Currently, the preparatory work for the project is being carried out in an orderly manner. At the same time, the Company is
still actively seeking to further expand the production capacity of photovoltaic glass in other regions with resource support and
industrial chain support. Under the background of carbon peaking and carbon neutrality, the photovoltaic glass business will become
the new champion business of CSG.
In 2022, with the promotion of domestic distributed photovoltaics, large-scale wind power photovoltaic bases and photovoltaic
guaranteed grid-connected policies, as well as the promotion of carbon neutrality plans disclosed by countries around the world, the
global installed capacity will maintain a relatively high growth rate. According to the statistics of China Photovoltaic Industry
Association, from January to June 2022, the domestic module output was 123.6GW, a year-on-year increase of 54.1%, the domestic
photovoltaic power generation installed capacity was 30.88GW, a year-on-year increase of 137.4%; the export volume of
photovoltaic modules was 78.6GW, a year-on-year increase of 74.3%. From the analysis of the current policy environment and
market development trend, photovoltaic power generation has a broad space for development in the future, and the development of
the global market may accelerate. Although the concentrated release of new capacity of photovoltaic glass in recent years may lead to
a phased mismatch of supply and demand in the market and cause market price fluctuations, with the rapid development of the global
market and the optimization and adjustment of the domestic industrial structure, the industry will still return to the track of healthy
development. In 2022, the Company will spare no effort to promote the project construction, speed up the technological
transformation and upgrading of the production line, focus on improving the production capacity of 1.6-2 mm ultra-thin photovoltaic
glass and photovoltaic glazed back plate glass for double glass modules, follow the product planning and route adjustment of module
technology development, consolidate the competitive advantage of the Company in the field of ultra-thin photovoltaic glass,
strengthen the long-term strategic cooperation with industry-leading enterprises, and further enhance the market competitiveness of
CSG's photovoltaic glass.
Architectural glass business
CSG is one of the largest suppliers of high-grade engineering and architectural glass in China and it has formed quality, service and
continuous research and development capabilities that match the brand. The Company has built six energy-saving glass processing
bases in Tianjin, Dongguan, Xianning, Wujiang, Chengdu and Zhaoqing. Up to now, the Company has formed an annual production
capacity of over 20 million square meters for coated insulating glass and over 45 million square meters for coated glass. In order to
seize the key opportunities for the development of building energy-saving glass and satisfy the people's pursuit of a better life, CSG
leverages its brand advantages to take the lead in improving the business layout of architectural glass. At present, the production
capacity of Zhaoqing Base and Tianjin Expansion Project is gradually being released, which further strengthens the ability of CSG's
architectural glass to meet the needs of the construction of world-class mega-city clusters in the Beijing-Tianjin-Hebei, Yangtze River
Delta, and Guangdong-Hong Kong-Macao Greater Bay Area. At the same time, in line with the trend of urban construction extending
further inland, the Group's Board of Directors approved the construction of Xi'an Architectural Glass Base, Hefei Energy-saving
Glass Intelligent Manufacturing Industry Base and Xianning Architectural Production Line Reconstruction and Expansion Project in
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CSG Semi-annual Report 2022
2021. Based on the local market conditions, the Company will arrange first-level or second-level architectural glass processing bases
that are suitable for their scale and needs, and continuously improve and strengthen the market competition and service capabilities of
CSG’s architectural glass business. At present, Wujiang Architectural Glass Smart Factory and Xianning Architectural Production
Line Reconstruction and Expansion Projects are being implemented as planned, and are expected to be basically completed within
2022. Construction of the Xi'an Base and Hefei Base Projects has started in the first half of 2022 and is expected to be completed in
2023. As the new projects are gradually completed and put into operation, the production capacity of CSG architectural glass will be
gradually released, and the market share of the products will be further increased.
CSG's architectural glass business adheres to the customized business strategy of trinity of technical service, marketing, R&D and
manufacturing, relying on its own manufacturing and R&D strength, as well as the marketing and service network formed domestic
and overseas offices, to meet the personalized needs of domestic and foreign customers and construction projects. In 2017, CSG's
low-E coated glass was awarded the title of Single Champion Product by the Ministry of Industry and Information Technology, and it
passed the review again in 2020, which fully proves the leading position of CSG's architectural glass in the industry. The Company
has the world's leading glass deep processing equipment and testing equipment, and its products cover all kinds of architectural and
construction glass. The R&D and application level of the Company's coating technology keeps pace with the world, and the high-end
product technology is internationally leading. The shading and heat insulation performance of the product is further improved, and
the energy-saving contribution has been further enhanced. All deep processing bases of the Company have the production and
processing capabilities of triple-silver high-performance energy-saving glass. Under the background of the "Double Carbon" goal and
the national green and energy-saving building requirements, the market demand for triple-silver has further expanded. After years of
market testing and relying on the Company's advanced coating technology, its high performance and stability have been well
received by the market, CSG’s triple-silver products have become the benchmark in the domestic three-silver product market, and
high-quality energy-saving and environmentally friendly LOW-E insulating glass continues to lead the domestic high-end market
share. The Company has always adhered to the intelligent transformation and digital transformation as the key increment of the
development of architectural glass business. It has continuously invested and accumulated rich experience in the research of
production automation, intellectualization, information technology and equipment, and the efficiency improvement of intelligent
upgrading and transformation of traditional equipment. With technological progress and process optimization, the Company has
reduced production manpower consumption, material consumption and energy consumption, actively promoting the Company's
transformation and upgrading to achieve intensive manufacturing and high-quality development.
The Company’s quality management system for engineering and architectural glass has been respectively approved by organizations
of UK AOQC and Australia QAS. The product quality which meets the national standards of the US, the UK and Australia enables
CSG has an advantage in the international tendering and bidding. Since 1988, CSG's engineers and technicians have been
continuously participating in the formulation and compilation of various national standards and industry standards. All kinds of
high-quality engineering architectural glass provided by the Company are widely used in landmark buildings such as major city
CBDs and transportation hubs at home and abroad, which are too numerous to mention. The 2022 Beijing Winter Olympics, which
attracted worldwide attention, accomplished successfully. The keynote of this Winter Olympics is "Green Winter Olympics". CSG’s
Glass is honored to be selected for the construction of quite a few related venues for the Beijing Winter Olympics with its safety,
energy saving and high-end quality, including National Speed Skating Hall, National Ski Jumping Center, Shougang Ski Jumping
Platform, Beijing Olympic Village and many other representative projects. CSG’s products are once again stunningly displayed in
front of the world, with the projects using CSG’s products appeared frequently in the past, such as Capital International Airport,
Daxing International Airport, National Convention Center, as well as the projects in Capital CBD Area, which contributed a unique
and beautiful landscape to the wonderful and extraordinary Olympic Games.
Electronic glass and display business
Electronic glass
After more than ten years of hard work, CSG electronic glass has always focused on increasing investment in research and
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CSG Semi-annual Report 2022
development, breaking through high-end market barriers with independent intellectual property rights and independent innovation,
and firmly following the development route of product upgrades and iterations to accelerate import substitution. Electronic glass has
become another CSG brand. At the same time, the ultra-thin electronic glass is also recognized by the Ministry of Industry and
Information Technology of the People's Republic of China as the "Individual Champion Product of Manufacturing Industry". In the
first half of 2022, the Company's electronic glass business continues to develop. Its four subsidiaries, Hebei Panel, Yichang
Photoelectric, Qingyuan New Energy-Saving Materials and Xianning Photoelectric continued to actively implement product
upgrading and market upgrading in the application fields of intelligent electronic terminals, touch components, vehicle mounted
display, auto glass, industrial control and commercial display, safe-guard facility and smart home, so that the market share and brand
influence of the Company's medium-alumina and high-alumina electronic glass products could improve greatly. Rich product
structure, reliable delivery guarantee and strong technical innovation help the Company’s electronic glass business maintain its
dominant position in the fierce market competition.
In March 2021, in order to strengthen the Company's high-end market competitiveness in the field of ultra-thin electronic glass for
touch applications, the Company's Board of Directors approved Hebei Panel to invest in a new ultra-thin electronic glass production
line and complementary R&D center with a daily melting capacity of 110 tons. It is expected to be completed and put into operation
in the second half of 2022. In December 2021, the Company's Board of Directors approved the upgrade and renovation project of
Qingyuan CSG Phase I. At present, the project is still under construction. When the new project is completed and put into operation,
CSG electronic glass will fully cover the field of electronic glass products in high, medium and low-end application scenarios,
forming a more solid market competition foundation. CSG has long been committed to becoming the industry's leading electronic
glass material solution provider, and it will continue to develop glass-based protective materials with higher strength and
competitiveness in the field of touch display, develop human-computer interaction interface materials meeting the requirements of
material interconnection in the fields of smart home, vehicle display and advanced medical, and develop revolutionary alternative
materials in the fields of new-energy vehicles and security.
Display
In the field of touch display, CSG has mastered the three industry-leading technologies of vacuum magnetron sputtering coating, 3A
(Ag + Ar + AF) product processing, and yellow light fine pattern forming, and has a complete industrial chain. The main business
includes ITO conductive glass, ITO conductive film, high-grade Ag glass, vehicle mounted TP sensor and vehicle mounted
multi-functional cover plate. In the traditional advantageous business of ITO conductive glass and ITO conductive film, in the first
half of 2022, the company actively responded to the adverse impact of the external environment and the pressure of industry
competition through internal deep exploration of potential and research and development of high value-added differentiated product
strategies in new application fields, and the overall production and sales volume remained stable. In the field of high-end Ag glass
business, in the first half of 2022, the performance indicators of the Company's products were leading in the industry, and the
production and sales volume reached a record high. It is mass-produced and supplied to internationally famous customers, mainly
used in high-end vehicle display screens. In the two major business areas of vehicle mounted multi-functional 3A cover plate and
vehicle mounted TP sensor, the Company has indirectly supplied to domestic and foreign well-known automobile brand terminal
manufacturers through downstream customers. It is expected that in the second half of 2022, the production and sales volume will
increase, becoming a new growth point of the Company.
Solar energy and other industries
CSG is one of enterprises which firstly enter the field of photovoltaic product manufacturing in China.After more than ten years of
construction, operation and technological transformation and upgrading, CSG has created a complete industrial chain covering the
operation of high-purity crystalline silicon materials, silicon wafers, cells, modules and photovoltaic power stations. The business
structure of the entire industry chain enables the Company to have a certain ability to resist risks, be sensitive to the industry, and be
able to identify and respond quickly to market changes in the industry. After years of technical accumulation, CSG's photovoltaic
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CSG Semi-annual Report 2022
sector has built three national-level scientific research and technology platforms (the National Development and Reform Commission
recognized the "National and Local Joint Engineering Laboratory for Semiconductor Silicon Material Preparation Technology",
"National Enterprise Technology Center" and "CNAS Accredited Laboratory". "), seven provincial scientific research and technology
platforms ("Semiconductor Silicon Material Preparation Technology Hubei Engineering Laboratory" and "Hubei Enterprise
Technology Center"; the Provincial Department of Science and Technology recognized "Hubei Silicon Material Engineering
Technology Research Center", "Hubei Province Silicon Material Engineering Technology Research Center" Semiconductor Silicon
Material Technology International Cooperation Base", "Hubei Silicon Material Enterprise-School Joint Innovation Center",
"Guangdong Solar Photovoltaic Cell and Component Engineering Technology Research Center", "Guangdong Enterprise Technology
Center"), won 7 national and local science and technology progress awards, 143 patents, including 53 inventions, 21 scientific and
technological achievements, and led or participated in the formulation of 23 industrial standards.
In 2022, the global terminal installation demand exceeded expectations, while the upstream high-purity crystalline silicon material
production capacity was limited, and the severe reality of insufficient supply ran through the first half of 2022. Yichang CSG silicon
materials Co., Ltd., a subsidiary of the solar energy business department of CSG, fully implemented the strategic decisions and
deployment of the Group's management, unswervingly implemented the technical transformation and resumption of high-purity
crystalline silicon production lines and the transformation and upgrading of silicon wafer business, and achieved good economic
benefits. At present, the solar energy industry relies on years of technical precipitation and first-class industrial talent team. Yichang
production base has a high-purity crystalline silicon production capacity of 10,000 tons/year, silicon wafers 2.2GW/year, and ingot
purification of monocrystalline materials 7200 tons/year; Dongguan production base has a production capacity of 0.6GW/year for
cells and 0.6GW/year for modules; Shenzhen Photovoltaic owns 139MW of photovoltaic power plants. As a public listed company
with extensive social influence and sense of social responsibility, CSG has always adhered to the concepts of energy conservation,
environmental protection and people-oriented, and contributed to the construction of an environment-friendly, resource-saving and
sustainable human future.
(II)Overview of operation during the report period
In recent years, CSG Group has made a forward-looking layout, firmly promoted the adjustment of business structure during
development, strengthened the competitive advantage of traditional energy-saving building materials, and accelerated the
development of new energy and new material industry sectors. In the first half of 2022, the Company achieved operating income of
RMB 6.519 billion, a year-on-year decrease of 1.45%; net profit of RMB 1.009 billion, a year-on-year decrease of 26.33%; net profit
attributable to shareholders of the listed company was RMB 1.001 billion, a year-on-year decrease of 25.98%.
Glass business segment:
Float glass: in the first half of 2022, the domestic downstream architectural glass market demand slowed down in stages, and the
price of float glass fell. At the same time, due to factors such as rising raw and fuel prices, the production cost was increased, and the
profitability of float glass fell. In the face of the severe external environment, the company firmly follows the high-end differentiated
product line: expanding the production capacity of ultra-clear glass, further increasing the production and sales, creating a series of
high-end brands of CSG ultra-clear "Blue Diamond", and becoming a leader in the industry segment; The proportion of high
value-added differentiated products continued to increase, maintaining a leading position in the market segment of high-grade float
glass. Coordinating and organizing the procurement of strategic reserves of bulk raw materials to effectively hedge the pressure of
rising procurement costs; establishing a mineral resources management center to coordinate the implementation of the strategic task
of expanding mineral resources reserves; strengthening the lean control of the entire production process, and continue to reduce costs
and increase efficiency. In the first half of 2022, the revenue of the float glass business decreased by 20.66% compared with the same
period of the previous year, and the net profit decreased by 64.34%.
Photovoltaic glass: continue to maintain the industry-leading production capacity, quality and comprehensive manufacturing yield of
ultra-thin photovoltaic glass products below 2mm. In the first half of 2022, the global photovoltaic market was generally good. The
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CSG Semi-annual Report 2022
growth of domestic and overseas demand for photovoltaic modules formed an incremental demand for photovoltaic glass, and the
price of photovoltaic glass rose to a certain extent. However, due to the centralized investment of new capacity, there were signs of
supply and demand mismatch in the short term. The Company is firmly optimistic about the long-term development of the
photovoltaic new energy industry, accelerating the construction of new photovoltaic glass projects in Fengyang and Xianning, and at
the same time, stepping up the upgrading and transformation of existing production lines to better meet the needs of customers and
future market competition. The expansion of photovoltaic glass production capacity will greatly enhance the market competitiveness
of the Company's photovoltaic glass. In order to adapt to changes in business scale, the Company has established a photovoltaic glass
marketing center to coordinate the Group's photovoltaic glass marketing business and effectively improve the Company's
management efficiency. In the first half of 2022, due to the upgrading and transformation of the photovoltaic glass production line of
Dongguan Company, the business income and profit level of the photovoltaic glass segment decreased compared with the same
period of the previous year, of which the income decreased by 43.66% and the net profit decreased by 101.18%.
Architectural glass: is the golden brand of CSG, and it has formed quality, service and continuous R&D capabilities that match the
brand. Focusing on the Country's improvement of building energy-saving standards and high-rise building safety standards, it
strengthens brand building and adheres to the customized business strategy of trinity of technical service, marketing and R&D and
manufacturing, to meet the personalized needs of domestic and foreign customers and construction projects. The market share in the
domestic high-end construction market continues to rise, and the market scale and profitability in the field of deep processing in the
same industry maintain a leading position. Affected by the spread of the domestic epidemic in the first half of 2022, the pressure on
sales and delivery increased year-on-year, and the pressure on domestic real estate companies to collect financing increased. In order
to reduce operational risks, the Company gradually increased risk management and control requirements, and the year-on-year
increase in operating income was limited. However, by refining the market layout, the Company continued to increase the signing of
high-quality projects, the order compounding degree and the proportion of triple-silver products increased significantly year-on-year,
while increasing the proportion of high-quality small and medium-sized orders such as short-flat-fast orders, etc., and increased
cooperation in livelihood security projects. Continue to "Reduce Costs and Increase Efficiency" and refine operations, relying on the
advantages of the Group's industrial chain, operating profit maintains a steady growth trend. Focusing on the future, the Company
seizes the historic opportunity of speeding up green building construction, accelerates the construction of new bases, improves the
automation and informatization level of production lines, continuously improves equipment production efficiency, and takes the lead
in future industry competition. At present, the production capacity of Zhaoqing Base and Tianjin Expansion Project is gradually
being released; Wujiang Architectural Glass Intelligent Factory and Xianning Architectural Production Line Reconstruction and
Expansion Project are being implemented as planned and are expected to be basically completed in 2022. The construction of Hefei
energy-saving glass intelligent manufacturing industry base and Xi'an base has been started and is expected to be put into use in 2023.
With the gradual completion and launch of new production capacity, the product service capability and market share will continue to
increase, and the golden signboard of CSG architectural glass will become brighter and brighter. In the first half of 2022, the business
revenue of the engineering glass segment increased by 1.11% compared with the same period of the previous year, and the net profit
increased by 216.17%.
Electronic glass and display business segment
Focusing on increasing investment in research and development, breaking through high-end market barriers with independent
intellectual property rights and independent innovation, and firmly following the development route of product upgrades and
iterations to accelerate import substitution, electronic glass has become another champion business of CSG. In the first half of 2022,
the Company's high aluminum second generation (KK6-P) lithium aluminosilicate electronic glass products continued to expand the
market of new customers, and successfully equipped OLED screens to achieve a breakthrough in high-end screen applications,
marking that CSG's electronic glass business has firmly established the supply chain system of domestic high-end customers. At the
same time, the Company continued to promote product technology upgrading, developed new products for window glass of new
energy vehicles, and successfully passed customer certification. It is expected to achieve mass production and shipment in the second
half of 2022. The future market is worth looking forward to. The Company continued to strengthen the research and development of
13
CSG Semi-annual Report 2022
the third generation of high-aluminum, and achieved good results in end-customer verification. In addition, Qingyuan CSG Phase II
"One Kiln and Two Lines" project, which was transferred to commercial operation at the end of 2020, is operating well, enhancing
the overall profitability of electronic glass, and further consolidating and strengthening CSG's competitive advantage in the domestic
electronic glass field. In the first half of 2022, due to the impact of the "Epidemic" and the general economic environment, the
terminal market demand shrank, resulting in a decline in the performance of the Company's electric display segment. In the first half
of 2022, the Electric Display segment achieved a revenue of RMB 810 million, a year-on-year decrease of 8.06%, and a net profit of
RMB 112 million, a year-on-year decrease of 50.15%.
Solar and other business segments
The macro background of the global consensus on "Green Development" and the timetable of the domestic double-carbon target
jointly promote the photovoltaic industry to enter a new high-speed development period after comprehensively ushering in the
affordable Internet access. On the basis of objective analysis of its own industrial advantages and disadvantages, overall
consideration of the market environment, industrial development trend and the Group's overall industrial development plan, the
Company plans to implement the project of 50,000 ton high-purity crystalline silicon in Haixi Prefecture, Qinghai Province, to
further expand the solar energy business and enhance the Group's overall competitiveness. At present, the Company's high-purity
crystalline silicon adopts two paths of strategic cooperation with downstream cooperators in the industry chain, signing long-term
orders and flexible sales to reduce operating risks and ensure stable and sustainable business development. Continuously optimizing
the process in production to continuously reduce cost and increase efficiency. For example, the differential pressure coupling
technology of four distillation columns reduces the unit consumption of steam by more than 20%; the process improvement and
control technology optimization of the comprehensive utilization of materials have increased the chlorosilane recovery rate by more
than 38%, and greatly reduced the alkali consumption and waste residue discharge. After the resumption of production, with a
combination of technical measures and production management upgrades, the production capacity broke a record high, of which the
third level of national standard electronics accounted for nearly 95%, while the silicon unit consumption, comprehensive electricity
unit consumption, and steam unit consumption all hit record lows. After the resumption of production, high-purity crystalline silicon
quickly entered the first-tier manufacturers in the industry, such as Trina, Jinko, Canadian Solar, Gaojing, and Shuangliang
ECO-Energy, relying on product quality and market reputation. The electronic grade high-purity crystalline silicon compact material
has met the requirements of N-type battery customers, and the market competitiveness is prominent, which brings great confidence to
the construction of the project of Qinghai 50,000-ton high-purity crystalline silicon. At present, the project of Qinghai 50,000-ton
high-purity crystalline silicon has completed site selection analysis, technical plan, organization capacity, schedule planning,
investment estimation, financial evaluation, etc. After several rounds of discussions, the top-level design has been preliminarily
completed.
In the silicon wafer business, on the basis of consolidating the customer base of polycrystalline silicon wafer products, it adopts
diversified operations, actively transforms the mainstream market with the monocrystalline route, makes full use of its own
advantages, and enhances the ability of asset creation. In the first half of 2022, the profitability of the wafer business improved
significantly, which benefited from the successful capture of the Indian market by polycrystalline silicon wafer products, the
transformation of monocrystalline wafers and preliminary results achieved by ingot purification single crystal materials, among
which, in the first half of 2022, a total of 10.82 million monocrystalline silicon wafers were sold, and 802 tons of ingot refining
single crystal materials were used. The transformation of silicon wafer to single crystal is in line with the long-term development
strategy of the Company. In terms of market strategy, monocrystalline silicon wafers have successfully entered the TOP 5 battery
manufacturers (Aixu, Jietai, Jinko, etc.). The module business has completed the construction of a 500MW high-power, large-size
module production line and has been put into production smoothly, greatly improving the ability to obtain orders. The power station
business added 7.2MW to the grid in the first half of 2022, with a total of 139MW of photovoltaic power stations.
In the first half of 2022, the Company's solar and other business revenue totaled RMB 1.434 billion, a year-on-year increase of
225.49%, and its net profit was RMB 282 million, a significant year-on-year increase.
14
CSG Semi-annual Report 2022
II. Core Competitiveness Analysis
CSG, one of the most competitive and influential large-scale enterprises in China's glass industry and new energy industry, is
committed to the development of energy conservation renewable, and new material industry. After nearly 40 years of development
and accumulation, the Company has gradually formed a comprehensive competitive advantage in terms of products and brands,
technology research and development, industrial chain and layout, talent team, and green development.
1. Product and brand advantages
"CSG" is a famous brand of domestic energy-saving glass, ultra-thin electronic glass, display and solar photovoltaic products. Its
products and technology are well-known at home and abroad. The trademarks " 南 玻 " and "SG" held by the Company are both
"Famous Trademark of China". The Company has been listed in the "Top 50 Building Materials Enterprises in China", "Top 100
Industry Leaders in Shenzhen" and "Preferred Brand of Architectural Glass" in Door and Window Curtain Wall Industry for many
years. In 2018,"CSG" brand was recognized by the United Nations Industrial Development Organization as the fourth batch of
"International Reputation Brand". CSG’s low-E coated glass and ultra-thin electronic glass were awarded the title of Single
Champion Product by the Ministry of Industry and Information Technology, and it is the only manufacturer in the domestic glass
industry that has two single champion products at the same time.
2. Technology research and development advantage
The Company has always attached importance to technology research and development since its establishment, and has taken
independent R&D as its foundation by which leading the development of China's glass industry. As of June 30, 2022, the Company
has had a total of 19 national high-tech Enterprises, 2 national-level manufacturing single champion products, 1 national-level
engineering laboratory, 1 national-level enterprise technology center, 3 national intellectual property advantage enterprises, 5
national-level specialized and sophisticated enterprises, 1 National Science and Technology Progress Award, 2 provincial-level
academician workstations, 1 provincial-level doctoral workstation, 12 provincial-level enterprise technology centers, 6
provincial-level engineering technology research centers, 4 provincial-level intellectual property demonstration construction
enterprises, 6 provincial-level specialized and sophisticated enterprises, 7 provincial-level science and technology little giants, 1
provincial-level government quality award, 9 provincial-level scientific and technological progress awards, 3 provincial-level patent
awards. As of June 30, 2022, the Company had applied for a total of 2,470 patents, including 993 inventions, 1,468 utility model
patents, and 9 designs. The Company had been accumulatively authorized 1,811, including 337 inventions, 1,465 utility models, and
9 designs.
3. Industrial chain and layout advantages
The Company has three complete industrial chains of energy-saving glass, electronic glass and display, and solar photovoltaic. With
the continuous improvement of the technological level of each link of the industrial chain, the industrial advantage is obvious. At the
same time, the Company possesses a complete industry layout. The six major production bases are located in the Pearl River Delta in
South China, the Yangtze River Delta in East China, the Chengdu-Chongqing region in Southwest China, Beijing-Tianjin-Hebei
region in North China, and the Hubei region in Central China.
4. Talent team advantage
The advantage of the Company’s talent team is mainly reflected in two aspects: On the one hand, the Company has established a
strong R&D team and R&D system. Through the construction of the core technical team, continuous R&D investment, and abundant
technical reserves, it has built up important technological innovation support for the Company’s strategy. Meanwhile, it establishes
Industry-University-Research cooperation, actively cooperating with domestic colleges and universities which are in advantage in
15
CSG Semi-annual Report 2022
silicate materials industry, to accelerate the transformation of scientific research results, and to strengthen basic research; on the other
hand, an excellent and stable management team is one of the most fundamental guarantees for the Company’s rapid and stable
development. The Company has formed a good echelon training mechanism for professional managers. At present, the Company's
senior management team has comparative advantages in terms of academic background, professional qualities, knowledge reserves,
management concepts and experience.
5. Green development advantage
The Company prospectively chooses the enterprise development path of environmental protection and green development.
Environmental protection is the lifeline of the survival and development of glass enterprises and the concentrated embodiment of
corporate social responsibility in high energy consuming industries. As an environment-friendly and resource-saving enterprise, CSG
took the lead in the industry to use natural gas as fuel in all furnace production lines as early as more than ten years ago, and at the
same time took the lead in the industry to adopt waste heat power generation, distributed photovoltaic power generation and other
methods to achieve comprehensive energy utilization, and adopt comprehensive exhaust gas treatment such as desulfurization,
denitration and dust removal to achieve ultra-low emission, which is far lower than the national standard pollutant emission
permission value. Promoted by the goal of "Carbon Peaking and Carbon Neutrality" and the continuous tightening of environmental
protection policies, the Company, as a pioneer in the green development of the industry, has won a broad development space for
itself.
III. Main business analysis
Overview
Please refer to the relevant content of “I. Main business of the Company in the report period”.
Year-on-year changes of main financial data
Unit: RMB
Increase
The corresponding /decrease
The report period Reasons of change
period of last year year-on-year
（%）
Operating income 6,519,216,676 6,614,802,538 -1.45%
Operating costs 4,637,645,927 4,126,627,145 12.38%
Sales expenses 133,906,652 125,326,015 6.85%
Administration expenses 318,635,812 354,914,704 -10.22%
Financial expenses 62,797,352 86,999,999 -27.82%
Income tax expenses 168,925,524 255,280,290 -33.83% Mainly due to the decrease in total profit
R&D investment 265,877,930 224,886,882 18.23%
Mainly due to the increase in expenditure
Net cash flow arising from
902,803,121 1,698,245,375 -46.84% on purchasing goods and the decrease in
operating activities
cash received from selling goods
Mainly due to the increase in cash flow
Net cash flow arising from
-1,832,143,634 -1,170,930,677 56.47% paid for the purchase and construction of
investment activities
fixed assets, intangible assets and other
16
CSG Semi-annual Report 2022
long-term assets
Net cash flow arising from
1,033,633,029 -1,002,452,352 Mainly due to increase in borrowings
financing activities
Net increase in cash and
107,488,197 -476,355,365
cash equivalents
Major changes on profit composition or profit resources in the report period
□Applicable √Not applicable
There was no major change in the Company's profit composition or profit resources during the report period.
Composition of operating income
Unit: RMB
The report period The corresponding period of last year
Increase/decrease
Ratio in operating Ratio in operating
Amount Amount y-o-y
income income
Total of operating income 6,519,216,676 100% 6,614,802,538 100% -1.45%
According to industry
Glass industry 4,428,770,426 67.93% 5,352,576,980 80.92% -17.26%
Electronic glass &
809,915,769 12.42% 880,888,108 13.32% -8.06%
Display industry
Solar energy and other
1,433,641,147 21.99% 440,453,797 6.66% 225.49%
industries
Undistributed 230,507,530 3.54% 42,652,849 0.64% 440.43%
Amount of unutilized -383,618,196 -5.88% -101,769,196 -1.54% 276.95%
According to product
Glass products 4,428,770,426 67.93% 5,352,576,980 80.92% -17.26%
Electronic glass &
809,915,769 12.42% 880,888,108 13.32% -8.06%
Display products
Solar energy and other
1,433,641,147 21.99% 440,453,797 6.66% 225.49%
products
Undistributed 230,507,530 3.54% 42,652,849 0.64% 440.43%
Amount of unutilized -383,618,196 -5.88% -101,769,196 -1.54% 276.95%
According to region
Mainland China 6,019,026,588 92.33% 5,993,997,205 90.61% 0.42%
Overseas 500,190,088 7.67% 620,805,333 9.39% -19.43%
List of the industries, products or regions exceed 10% of the operating income or operating profits of the Company
√Applicable □ Not applicable
Unit: RMB
17
CSG Semi-annual Report 2022
Increase/decrease Increase/decrease Increase/decrease
Gross profit
Operating income Operating cost of operating of operating cost of gross profit
ratio
income y-o-y y-o-y ratio y-o-y
According to industry
Glass industry 4,428,770,426 3,060,501,990 30.89% -17.26% -6.90% -7.70%
Electronic glass &
809,915,769 582,707,570 28.05% -8.06% 10.47% -12.07%
Display industry
Solar energy and other
1,433,641,147 950,467,515 33.70% 225.49% 156.06% 17.98%
products
According to product
Glass products 4,428,770,426 3,060,501,990 30.89% -17.26% -6.90% -7.70%
Electronic glass &
809,915,769 582,707,570 28.05% -8.06% 10.47% -12.07%
Display products
Solar energy and other
1,433,641,147 950,467,515 33.70% 225.49% 156.06% 17.98%
products
According to region
Mainland China 6,019,026,588 4,235,104,852 29.64% 0.42% 14.02% -8.39%
Overseas 500,190,088 402,541,075 19.52% -19.43% -2.36% -14.07%
Under the circumstances that the statistical standards for the Company’s main business data adjusted in the report period, the
Company's main business data in the recent year is calculated based on adjusted statistical standards at the end of the report period
□ Applicable √ Not applicable
IV. Non-core business analysis
√Applicable □Not applicable
Unit: RMB
Percentage to Whether sustainable
Amount Explanation of the reason
total profits or not
Income from investment 16,413,695 1.39% Mainly from the purchase of structured deposits No
Mainly due to the reversal of inventory depreciation
Impairment of assets -1,456 0% No
reserves
Mainly insurance compensation and unpaid
Non-operating income 15,132,978 1.29% No
payments, etc.
Non-operating expenses 3,660,070 0.31% Mainly compensation and other expenses No
Mainly the profit and loss on disposal of non-current
Income from asset disposal 12,745,461 1.08% No
assets
Other income 99,302,552 8.43% Mainly the return of government subsidies, etc. No
Mainly due to the provision for bad debts of
Credit impairment loss 1,492,222 0.13% No
accounts receivable
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CSG Semi-annual Report 2022
V. Assets and liabilities
1. Significant changes in assets composition
Unit: RMB
End of the corresponding
End of the report period Increase or
period of last year
decrease
Percentage Percentage Explanation of significant changes
in
Amount to total Amount to total
proportion
assets assets
Monetary funds 2,870,042,541 12.77% 2,765,925,906 13.87% -1.10%
Accounts receivable 842,283,667 3.75% 730,525,687 3.66% 0.09%
Mainly due to the resumption of
production of Yichang CSG Polysilicon
Inventory 1,766,912,399 7.86% 1,093,805,525 5.49% 2.37%
and the increase in material reserves of
some subsidiaries, etc.
Investment property 383,084,500 1.70% 383,084,500 1.92% -0.22%
Fixed assets 9,336,413,529 41.55% 8,566,515,026 42.96% -1.41%
Construction in
2,809,337,684 12.50% 2,461,088,650 12.34% 0.16%
progress
Right of use assets 9,034,632 0.04% 9,911,935 0.05% -0.01%
Mainly due to borrowings of some
Short-term loans 468,108,522 2.08% 180,770,000 0.91% 1.17%
subsidiaries
Contract liabilities 413,885,125 1.84% 335,188,642 1.68% 0.16%
Mainly due to the increase of loans for
Long-term loans 3,161,136,468 14.07% 1,469,059,824 7.37% 6.70%
project construction
Mainly due to the reclassification of
Lease liabilities 220,138 0% lease liabilities to non-current liabilities
due within one year
Mainly because some were converted to
Notes receivable 445,375 0% 19,220,984 0.10% -0.10% accounts receivable due to
non-performance by the drawer
Mainly due to the increase in sales
Receivables financing 582,328,808 2.59% 297,046,123 1.49% 1.10% revenue from the resumption of Yichang
CSG Polysilicon
Mainly due to the increase in
Prepayments 235,326,059 1.05% 76,097,276 0.38% 0.67% prepayments for materials by some
subsidiaries
Mainly due to the decrease in
Other current assets 68,616,670 0.31% 140,705,298 0.71% -0.40%
value-added tax to be deducted
Mainly due to the increase of new notes
Notes payable 549,939,628 2.45% 400,662,713 2.01% 0.44%
issued by some subsidiaries
Payroll payable 287,729,142 1.28% 426,212,979 2.14% -0.86% mainly due to the year-end bonuses
19
CSG Semi-annual Report 2022
accrued in the previous year that were
paid during the report period.
Non-current liabilities Mainly due to the reclassification of
2,371,913,539 10.56% 503,820,548 2.53% 8.03% bonds payable to non-current liabilities
due within one year
due within one year
Mainly due to the reclassification of
Bonds payable 1,996,587,330 10.01% -10.01% bonds payable to non-current liabilities
due within one year
2. Main overseas assets
□Applicable √Not applicable
3. Assets and liabilities at fair value
√Applicable □Not applicable
Unit: RMB
Profi
t and
loss Imp
from Cumul airm
chan ative ent
ges chang accr
in es in ued Purchase
Opening Amount sold Other Closing
Item fair fair in amount for this
balance in this period changes balance
value value the period
in includ curr
the ed in ent
curre equity peri
nt od
perio
d
Financial assets
Trading
financial assets
(excluding
999,600,000 2,198,160,000 1,988,760,000 1,209,000,000
derivative
financial
assets)
Subtotal of
999,600,000 2,198,160,000 1,988,760,000 1,209,000,000
financial assets
Investment real
383,084,500 383,084,500
estate
Receivables
297,046,123 285,282,685 582,328,808
financing
Total of the
1,679,730,623 2,198,160,000 1,988,760,000 285,282,685 2,174,413,308
above
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CSG Semi-annual Report 2022
Other changes: nil
During the report period, whether the company’s main asset measurement attributes changed significantly or not
□Yes √No
4. Limited asset rights as of the end of the report period
Unit: RMB
Item Closing book value Limited reason
Monetary funds 6,076,772 Limited circulation of margin
Fixed assets 148,986,093 Limited finance lease
Total 155,062,865 --
VI. Investment analysis
1. Overall situation
√Applicable □Not applicable
Investment in the report period (RMB) Investment in the same period of last year (RMB) Change range
3,850,076,802 2,389,404,198 61.13%
2. The major equity investment obtained in the report period
□Applicable √Not applicable
21
CSG Semi-annual Report 2022
3. The major ongoing non-equity investment in the report period
√Applicable □ Not applicable
Unit: RMB
Reasons for
Fixed Accumulative Accumulati
not Date of Index of
asset amount ve revenue
Way of Amount invested achieving disclosur disclosure
inves Industry actually Source of Expected achieved by
Project investme in the report Progress of project (ongoing projects) the planned e (if (if
tment involved invested by funds return the end of
nt period progress and applicabl applicable
or the end of the the report
the expected e) )
not report period period
return
CSG plans to invest in the construction
Part of the Part of the
of energy-saving glass production
project had project had
Zhaoqing CSG Own funds project in Zhaoqing from 2019 to
been been
high-grade and loans 2021. After the production, the
completed, completed, Decembe Notice
energy Manufacturing from company will produce 2.5 million
Self-built Yes 27,140,143 340,490,176 69,880,000 and the and the r 13, number:
conservation industry financial square meters of energy-saving
benefits had benefits had 2019 2019-077
glass production institutions insulating glass and 3.5 million square
been been
line project meters of coated energy-saving
reflected in reflected in
products. Part of the project has been
the profits. the profits.
put into production.
Own funds
Zhaoqing CSG CSG plans to invest in the construction No profit as No profit as
and loans
high-grade of high-end automotive glass the project the project is Decembe Notice
Manufacturing from
automotive glass Self-built Yes 26,746,441 54,688,369 production line in Zhaoqing from 2019 58,000,000 is in the in the r 13, number:
industry financial
production line to 2021. The project is under construction construction 2019 2019-077
institutions
project construction. period. period.
Anhui Fengyang Manufacturing Own funds CSG plans to build a new production Part of the Part of the March 6, Notice
Self-built Yes 83,192,287 139,848,770 82,380,000
quartz sand industry and loans base of low iron (ultra-white) quartz project had project had 2020 number:
22
CSG Semi-annual Report 2022
project from sand with an annual output of 600,000 been been 2020-010
financial tons in Fengyang, Anhui Province, and completed, completed,
institutions obtain the raw ore right of quartz sand. and the and the
The processing plant has been put into benefits had benefits had
operation been been
reflected in reflected in
the profits. the profits.
Anhui Fengyang
Lightweight & CSG plans to invest in Anhui Province
Own funds No profit as No profit as
high-permeabil for the project of lightweight
and loans the project the project is Notice
ity panel for Manufacturing &high-permeability panel for solar March 6,
Self-built Yes 776,565,916 1,541,736,443 from 435,660,000 is in the in the number:
solar energy industry energy equipment manufacturing base 2020
financial construction construction 2020-010
equipment in 2020-2022.The project is under
institutions period. period.
manufacturing construction.
base project
The project
CSG intends to invest in a new coating
has just
production line in Tianjin CSG, and at The project
been
the same time upgrade and transform has just been
completed
Tianjin the existing coating line B and line C. completed
Own funds and
Energy-saving The project plans to increase the and
and loans transferred Notice
Coating Manufacturing annual production capacity of 2.76 transferred April 30,
Self-built Yes 5,636,400 100,861,437 from 16,400,000 to fixed number:
Production Line industry million square meters through the to fixed 2020
financial assets, and 2020-023
Purchase and purchase of coating lines and the assets, and
institutions the income
Upgrade Project upgrading and transformation of the income
has not
existing production lines. has not been
been
The project has been put into reflected yet.
reflected
production.
yet.
Wujiang Self-built Yes Manufacturing 18,921,344 70,687,326 Own funds CSG plans to build a full-process 50,490,000 No profit as No profit as June 24, Notice
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CSG Semi-annual Report 2022
Architectural industry and loans flexible automated production line the project the project is 2020 number:
Glass newly from covering cutting, edging, tempering, is in the in the 2020-051
building financial insulating and other processes in construction construction
intelligent institutions Wujiang CSG East China Architectural period. period.
manufacturing Glass Co., Ltd., using the reserved
plant industrial land in the factory area. The
construction new factory building area is 31,968
project square meters, and the new intelligent
manufacturing production line has an
annual output of 1.2 million square
meters of Low-E energy-saving
insulating glass. The project is under
construction.
CSG plans to build two lightweight
and high-efficiency double-glass
processing production lines in Wujiang
Float. After the production line is
Wujiang Float
completed, it is expected to add 2
Lightweight and
Own funds million square meters of double-glass No profit as No profit as
High-efficiency
and loans production capacity per month, with an the project the project is Notice
double-glass Manufacturing August
Self-built Yes 69,360,586 109,762,834 from annual production capacity of 24 47,850,000 is in the in the number:
processing industry 24, 2020
financial million square meters. After the project construction construction 2020-061
production line
institutions is completed, it will give full play to period. period.
construction
Wujiang Float’s technical advantages
project
of double-glass, enhance market
competitiveness, and expand the scale
of the Company's benefits. The project
is under construction.
Xi'an CSG Own funds CSG Group plans to invest in Xi'an, No profit as No profit as Novemb Notice
Self-built Yes Manufacturing 811,279 1,148,618 42,220,000
Energy-saving and loans Shanxi Province for building a the project the project is er 7, number:
24
CSG Semi-annual Report 2022
glass production industry from high-end energy-saving glass is in the in the 2020 2020-070
line project financial production line with an annual output construction preparation
institutions of 2.1 million square meters of period. period.
insulating energy-saving glass, and a
3.5 million square meter energy-saving
glass production line with coated
energy-saving products. The project is
under construction.
Hebei Panel CSG plans to build an ultra-thin
Own funds No profit as No profit as
Glass ultra-thin electronic glass production line with a
and loans the project the project is Notice
electronic glass Manufacturing daily melting capacity of 110 tons and March
Self-built Yes 51,867,735 76,272,085 from 46,710,000 is in the in the number:2
Line II industry a complementary R&D center in Hebei 27, 2021
financial construction construction 021-008
construction Panel Glass. The project is under
institutions period. period.
project construction.
Xianning CSG
1200T/D Own funds CSG plans to build a photovoltaic kiln No profit as No profit as
Photovoltaic and loans with a daily melting capacity of 1,200 the project the project is Notice
Manufacturing March
Packaging Self-built Yes 221,289,643 287,738,732 from tons and complementary deep 128,350,000 is in the in the number:2
industry 27, 2021
Material financial processing lines in Xianning CSG. The construction construction 021-008
Production Line institutions project is under construction. period. period.
Project
Dongguan CSG CSG plans to carry out cold repair and
Solar technical transformation of the 650T/D
Own funds No profit as No profit as
Double-Glass line ultra-white solar kiln in Dongguan
and loans the project the project is Notice
Calendering Manufacturing Solar Phase III, and start the technical June 8,
Self-built Yes 69,857,051 72,246,922 from 60,670,000 is in the in the number:
Line Technical industry transformation and upgrade project of 2021
financial construction construction 2021-025
Transformation double-glass calendering line. After
institutions period. period.
and Upgrade the project is completed, it will ensure
Project that the product quality, output
25
CSG Semi-annual Report 2022
efficiency, energy consumption level
and cost advantage are at the leading
domestic level. The project is under
construction.
CSG Group plans to invest in the
construction of CSG East China
Headquarters Building in Wujiang
District, Suzhou City, Jiangsu
Own funds
Province, as the R&D, marketing, The project The project
CSG East China and loans Notice
Manufacturing exhibition, office and cooperation is in the is in the August
headquarters Self-built Yes 899,257 899,257 from number:
industry center of upstream and downstream construction construction 27, 2021
building financial 2021-039
enterprises in the industry chain in period. period.
institutions
East China, so as to meet the needs of
CSG's expanding business scale and
increasing personnel in East China in
the future.
CSG plans to invest in the construction
of CSG Guangxi Beihai Photovoltaic
Green Energy Industrial Park project
in Beihai Tieshangang Industrial Park,
CSG Guangxi Longgang New District, Guangxi
Own funds No profit as No profit as
Beihai Zhuang Autonomous Region. Phase I
and loans the project the project is Septemb Notice
Photovoltaic Manufacturing of the project includes two 1,200t/d
Self-built Yes 2,822,610 3,205,607 from 557,640,000 is in the in the er 10, number:
Green Energy industry One-kiln & Five-line photovoltaic
financial construction construction 2021 2021-041
Industrial Park rolled glass production lines and
institutions period. period.
Project (Phase I) complementary photovoltaic glass
processing production line, as well as
complementary R&D center, 2.5GW
photovoltaic module production line,
one 700 t/d one-kiln two-line
26
CSG Semi-annual Report 2022
production line for electronic glass and
photoelectric glass, complementary
quartz sand mine and purification
processing line. The project is under
construction.
CSG plans to invest in the construction
of a CSG energy-saving glass
intelligent manufacturing industrial
base in Hefei City, Anhui Province,
Hefei CSG using a new generation of intelligent
Own funds No profit as No profit as
Energy-saving manufacturing technologies and
and loans the project the project is Notice
Glass Intelligent Manufacturing processes to build an energy-saving October
Self-built Yes 820,064 820,064 from 46,660,000 is in the in the number:
Manufacturing industry glass processing center, and to further 15, 2021
financial construction construction 2021-043
Industry Base expand the market layout of CSG in
institutions period. period.
Project central China, thereby to better serve
the market and customers, and serve
the national "Carbon Peaking and
Carbon Neutrality goals".The project
is under construction.
CSG plans to use the surplus land in
the park to implement the production
Xianning CSG
line reconstruction and expansion
Energy-saving
Own funds project in Xianning CSG No profit as No profit as
Glass Co., Ltd.
and loans Energy-Saving Glass Co., Ltd., to the project the project is Notice
Production Line Manufacturing Decembe
Self-built Yes 3,276,913 3,423,496 from carry out technical renovation and 27,130,000 is in the in the number:
Reconstruction industry r 3, 2021
financial upgrade of the existing coating construction construction 2021-051
and Expansion
institutions equipment, expand the workshop and period. period.
Construction
supplement the complementary
Project
processing equipment, and
simultaneously implement the full
27
CSG Semi-annual Report 2022
intelligent connection. After the
completion of the project, it is
expected that the company's annual
production capacity of insulating glass
will increase by 1.2 million square
meters, and the annual production
capacity of coated glass will increase
by 2.42 million square meters. The
project is under construction.
CSG plans to carry out technical
transformation of phase I production
line of Qingyuan CSG Energy-saving
New Material Co., Ltd., and achieves
furnace and hardware upgrades
through technological innovation to
Qingyuan CSG
meet the technological requirements of
Energy-saving
Own funds the Group's newly developed No profit as No profit as
New Materials
and loans third-generation high-alumina products the project the project is Decembe Notice
Co., Ltd. Phase I Manufacturing
Self-built Yes 4,614,306 20,225,415 from (KK8). This technical upgrade will 60,210,000 is in the in the r 25, number:
Upgrading and industry
financial further promote the technological construction construction 2021 2021-053
Technical
institutions innovation of CSG in the field of period. period.
Transformation
electronic glass, open up the
Project
technological generation gap with
domestic business partners, seize the
market share of imported products, and
speed up the process of import
substitution. The project is under
construction.
Dongguan Solar Own funds CSG Group plans to upgrade the No profit as No profit as March Notice
Self-built Yes Manufacturing 3,303,071 3,303,071 41,560,000
G6/G7 Line and loans process and equipment of the two the project the project is 29, number:
28
CSG Semi-annual Report 2022
Process and industry from existing glass deep-processing is in the in the 2022 2022-006
Equipment financial production lines (G6/G7 lines) of construction construction
Upgrading institutions Dongguan CSG Solar Glass Co., Ltd. period. period.
Project to meet the production needs of
large-size glass and double-plated
products. After the completion of the
project, it will give full play to the
technical advantages of Dongguan
solar double glass technology, enhance
market competitiveness and expand
the Company's benefit scale. The
project is under construction.
CSG plans to build a new high-purity
crystalline silicon production line with
an annual output of 50,000 tons in
High-purity Haixi Prefecture, Qinghai Province.
crystalline Qinghai is not only rich in green
Convertible
silicon project power resources, but also one of the
bonds, own The project The project
with an annual Manufacturing regions with the greatest development Notice
funds and is in the is in the June 23,
output of 50,000 Self-built Yes 0 0 potential for clean energy, especially 863,280,000 number:
industry loans from preparatory preparatory 2022
tons in Haixi photovoltaic power generation in the 2022-024
financial stage. stage.
Prefecture, future. Therefore, the deployment of
institutions
Qinghai high-purity crystalline silicon
Province production lines in Qinghai Province is
of great strategic significance to the
development of CSG's new energy
industry.
Total -- -- -- 1,367,125,046 2,827,358,622 -- -- 2,635,090,000 -- -- -- --
29
CSG Semi-annual Report 2022
4. Financial assets investment
(1) Securities investment
□ Applicable √ Not applicable
There was no securities investment during the report period.
(2) Derivative investment
□ Applicable √ Not applicable
There was no derivative investment during the report period.
5. Use of raised fund
□ Applicable √ Not applicable
There was no use of raised fund during the report period.
VII. Sale of major assets and equity
1. Sale of major assets
□ Applicable √ Not applicable
The Company did not sell major assets during the reporting period.
2. Sale of major equity
□ Applicable √ Not applicable
VIII. Analysis of main subsidiaries and joint-stock companies
√Applicable □ Not applicable
Particular about main subsidiaries and joint -stock companies which have influence on the Company's net profit by over 10%
Unit: RMB
Register
Operating Operating
Name of company Type Main business ed Total assets Net assets Net profit
income profit
capital
Production and
Yichang CSG sales of
1,467.98
Polysilicon Co., Subsidiary high-purity 2,285,207,511 383,591,470 1,070,634,440 318,624,155 267,683,747
million
Ltd. silicon material
products
Chengdu CSG Subsidiary Development, 260 1,015,005,609 508,429,036 640,951,236 116,863,964 100,907,607
30
CSG Semi-annual Report 2022
Glass Co., Ltd. manufacture and million
sales of various
special glass
Manufacture
USD
Hebei CSG Glass and sales of
Subsidiary 48.06m 1,137,135,785 951,796,503 540,267,239 117,254,772 100,027,129
Co., Ltd. various special
illion
glass
Manufacture
Wujiang CSG and sales of 565.04
Subsidiary 1,962,966,929 1,599,080,155 851,318,321 99,130,927 83,140,150
Glass Co., Ltd. various special million
glass
Manufacture
Xianning CSG and sales of 235
Subsidiary 1,565,679,800 1,021,712,200 484,653,130 93,879,939 80,211,229
Glass Co., Ltd. various special million
glass
Particulars about subsidiaries obtained or disposed in report period
□ Applicable √ Not applicable
IX. Structured main bodies controlled by the Company
□ Applicable √ Not applicable
X.Risks the Company faces and countermeasures
In 2022, in the face of “New Normal” of domestic economic development and the task of building a “Century CSG”, the Company
will face the following risks and challenges:
①The epidemic situation at home and abroad and the international political environment are still facing many uncertainties.
Affected by the repeated outbreaks of the epidemic and the complicated international political environment, the domestic economy
still faces many challenges and uncertainties. In the second half of 2022, the Company will continue to normalize epidemic
prevention and control, strengthen its attention to the market, timely adjust the strategy according to market changes, and strive to
achieve the annual core work objectives through steady operation.
②The glass industry is facing the pressure of fierce competition for similar products, rising raw materials and fuels and rising labor
costs. The float glass industry is facing the pressure of a staged slowdown in the downstream architectural glass market demand; the
photovoltaic glass industry is facing the pressure of short-term mismatch between supply and demand and fluctuations in foreign
situations. The electronic glass and display device industry is facing the risk of accelerating the upgrading of material technology due
to the continuous and rapid iterative upgrading of downstream application scenarios; in the second half of 2022, with the successive
commissioning of new high-purity crystalline silicon production capacity and the release of production capacity, the downward
potential of high-purity crystalline silicon prices will increase; the overall imbalance of the solar energy supply chain is difficult to
break in the short term, and the price of upstream links is operating at a relatively high level, which puts pressure on the cost of
mid-stream and downstream business; in order to deal with the above risks, the Company will take the following measures:
A. In the flat glass segment, the Company will improve profitability and enhance industry competitiveness through continuous lean
management and differentiated operations, product structure optimization, etc.
B. In the architectural glass segment, the Company will accelerate the pace of digital, networked and intelligent transformation of the
31
CSG Semi-annual Report 2022
manufacturing industry, and reduce production manpower, material and energy consumption, Strengthen the development of
high-end markets and overseas markets, actively respond to market changes, continue to deepen the market and refine the market
layout, increase new products and the application of new technologies, improve service capabilities, and give full play to quality,
technology and brand advantages, meanwhile, carry out industrial chain extension and maintain the company's dominant position in
the industry.
C. In the solar energy segment, the Company will strengthen the integration of resources in the whole industrial chain, increase R&D
investment, strengthen operation management, and maintain enterprise competitiveness in the market segmentation field; pay close
attention to market changes, vigorously carry out cost reduction and efficiency increase activities, implement energy-saving and
consumption reduction measures, timely upgrade and replace equipment, improve production efficiency and ensure the Company's
benefits; expand the industrial scale and increase the market share by investing in new production lines.
D. In the electronic glass and display segment, the Company will increase the research and development of new technologies and
new products, maintain the leading edge of the industry technology, and further strengthen the development of the terminal market to
improve the industrial profitability.
③Risk of fluctuation of foreign exchange rate: At present, nearly 7.79% of the sales revenue of the Company is from overseas, in the
future, the Company will further develop overseas business, and therefore, the fluctuation of exchange rate will bring certain risk to
the operation of the Company. To cope with such risk, the Company will settle exchange in time and use safe and effective risk
evading instrument and product to relatively lock exchange rate and reduce the risk caused by fluctuation of exchange rate.
32
CSG Semi-annual Report 2022
Section IV. Corporate Governance
I. Particulars about annual general meeting and extraordinary general meeting held in the
report period
1. Particulars about Shareholders' General Meeting in the report period
Investor Date of the Disclosure
Meeting session Type of meeting Disclosure index
participation ratio meeting date
Extraordinary Announcement on Resolutions of
The First Extraordinary
General February 16, February 17, the First Extraordinary General
General Shareholders’ 29.04%
Shareholders’ 2022 2022 Shareholders’ Meeting of 2022
Meeting of 2022
Meeting （Announcement No.: 2022-004）
Announcement on Resolutions of
Annual General Annual General
May 17, Annual General Shareholders’
Shareholders’ Meeting of Shareholders’ 27.69% May 16, 2022
2022 Meeting of 2021（Announcement
2021 Meeting
No.: 2022-020）
2. Extraordinary general meeting which is requested to convene by the preferred shareholders who have
resumed the voting right
□ Applicable √Not applicable
II. Changes in directors, supervisors and senior management of the company
√Applicable □ Not applicable
Name Position Type Date Reason
Shen
Director Be elected August 3, 2022 By election of directors
Chengfang
Executive Vice
Appointment May 16, 2022 Appoint Executive Vice President
President
He Jin Due to the vacancy of the CEO, Mr. He Jin,
Perform as CEO Appointment August 15, 2022 Executive Vice President, temporarily performs the
duties of CEO.
Vice President and
Appointment of Vice President and Chief Financial
Chief Financial Appointment May 16, 2022
Officer
Officer
Wang Due to the vacancy of the
Wenxin secretary of board of directors, Ms. Wang Wenxin,
Perform as Secretary
Appointment July 8, 2022 Vice President and Chief Financial Officer,
of Board of Directors
temporarily performs the duties of
Secretary of Board of Directors.
Zhang
Director Post leaving June 28, 2022 Voluntary turnover
Jinshun
33
CSG Semi-annual Report 2022
Director Post leaving August 3, 2022 Be ousted
Wang Jian
CEO Dismissed August 15, 2022 Be ousted
Secretary of Board of
Yang Xinyu Dismissed July 2, 2022 Voluntarily resigned
Directors
III.Profit distribution and conversion of capital reserves into equity capital in the report
period
□ Applicable √Not applicable
The Company has no plans of cash dividend distribution, bonus shares being sent or converting capital reserve into share capital.
IV. Implementation of the Company’s stock incentive plan, employee stock ownership plan or
other employee incentives
□ Applicable √Not applicable
During the report period, the Company had no equity incentive plan, employee stock ownership plan or other employee incentive
measures and their implementation.
34
CSG Semi-annual Report 2022
Section V. Environment and social responsibility
I. Major environmental issues
Whether the listed company and its subsidiaries belong to the key pollutant discharge units announced by the environmental
protection department
√ Yes □ No
The Company needs to comply with the disclosure requirements of non-metal building materials related industries in "Shenzhen
Stock Exchange Listed Companies Self-discipline Supervision Guide No. 3 - Industry Information Disclosure"
Environmental protection related policies and industry standards
The Company implements the "Environmental Protection Law of the People's Republic of China", "the Law of the People's Republic
of China on the Prevention and Control of Air Pollution", the "Law of the People's Republic of China on the Prevention and Control
of Water Pollution", the "Law of the People's Republic of China on the Prevention and Control of Noise Pollution", and the
"Environmental Protection Tax Law of the People's Republic of China " and other relevant environmental protection laws and
regulations, and implements the "Flat Glass Industry Air Pollutant Emission Standard", "Electronic Glass Working Air Pollutant
Emission Standard", "Air Pollutant Comprehensive Emission Standard", "Sewage Comprehensive Emission Standard",
"Environmental Noise Emission Standards at the Boundary of Industrial Enterprises" and other national, industry and local pollutant
discharge standards.
Administrative license for environmental protection
The construction projects of each subsidiary carried out environmental impact assessment work and obtain EIA approval in strict
accordance with the requirements of the "Environment Impact Assessment Law of the People's Republic of China" and the
"Catalogue of Classified Management of Environmental Impact Assessment of Construction Projects". During the construction of the
project, the construction of pollution prevention and control facilities shall be carried out in strict accordance with the requirements
of the project "Three Simultaneous" and put into production and use at the same time as the main project. During the trial production
period, the inspection and acceptance shall be organized in accordance with the relevant regulations on environmental protection
acceptance of the completion of the construction project in order to ensure that the construction project completes the inspection and
acceptance work before it is officially put into operation.
All subsidiaries have obtained the pollutant discharge permit and are within the validity period, and regularly submit the
implementation report of pollutant discharge permit.
Industrial emission standards and specific conditions of pollutant emission involved in production and operation activities
Names of Exhaust Emission Implementation Total Approved
Number Excessive
main
Name of vent concentratio of pollutant emission total
pollutants Way of of emissions
Company or distribution n emission emission
and emission Exhaust
subsidiary
characteristic standards
vent
pollutants
Xianning Dust ≤30mg/m
Continuous/ Production Emission Particulates Particulates
CSG 16 N/A
Intermittent plant area Standard ：9.34t ：96.82t/a
Glass Co., Soot ≤25 mg/m
35
CSG Semi-annual Report 2022
Ltd. of Air
SO2 ≤200 mg/m 109.84t 636.5t/a
Pollutants for
Flat Glass
NOx ≤350 mg/m Industry(GB26 198.67t 1113.89t/a
453-2011)
Dust ≤20mg/m Emission
Particulates Particulates
Standard
Soot ≤20mg/m ：7.56t ：142.114t/a
Chengdu
CSG of Air
Continuous/ Production
Glass Co., SO2 15 ≤200mg/m Pollutants for 69.32t 1136.917t/a N/A
Intermittent plant area
Ltd Flat Glass
NOx ≤350mg/m Industry(GB26 237.49t 1989.609t/a
453-2011)
Dust ≤10mg/m Ultra Low
Particulates Particulates
Emission
Soot ≤10mg/m ：4.079t ：59.78t/a
Hebei CSG Standard of Air
Continuous/ Production
Glass Co., SO2 16 ≤50mg/m Pollutants for 26.326t 498.18t/a N/A
Intermittent plant area
Ltd. Flat Glass
NOx ≤200mg/m Industry(DB13/ 116.839t 982.2t/a
2168-2020)
Dust ≤15mg/m Emission
Particulates Particulates
Standard
Soot ≤15mg/m ：5.6t ：76.91t/a
Wujiang
CSG of Air
Continuous/ Production
Glass Co., SO2 39 ≤50 mg/m Pollutants for 11.12t 238.28t/a N/A
Intermittent plant area
Ltd Flat Glass
NOx ≤150 mg/m Industry(GB26 136.07t 818.04t/a
453-2011)
Dust ≤20mg/m Emission
Particulates Particulates
Standard of Air
Dongguan Soot ≤30mg/m ：1.53t ：34.85t/a
CSG Solar Continuous/ Production Pollutants for
Glass Co., 22 N/A
SO2 Intermittent plant area ≤400 mg/m Flat Glass 36.77t 300.99t/a
Ltd.
Industry（DB
NOx ≤550 mg/m 69.79t 535.67t/a
44-2159-2019）
Dust ≤30mg/m Pollutant
Particulates Particulates
Emission
Soot ≤10 mg/m ：0.071t ：8.2125t/a
Hebei Panel Standard for
Continuous/ Production
Glass Co., SO2 5 ≤50 mg/m Electric Glass 0.894t 22t/a N/A
Intermittent plant area
Ltd. Industry
NOx ≤200mg/m （GB29495-20 2.236t 39.4t/a
13）
Xianning Dust ≤20mg/m Pollutant Particulates Particulates
CSG
Continuous/ Production Emission
Soot 6 ≤15 mg/m ：0.8987t ：17.656t/a
Photovoltaic N/A
Intermittent plant area Standard for
Glass Co.,
SO2 ≤10 mg/m Electric Glass 0.0255t 65.6t/a
36
CSG Semi-annual Report 2022
Ltd Industry
NOx ≤330 mg/m （GB29495-20 28.3474t 163.81t/a
13）
pH 6~9 Guangdong / /
Dongguan Province Water
CSG COD 5 mg/L 3.348t 5.4t/a
Pollutant
Architectural Sewage
Intermittent 1 Emission N/A
Glass Co., vent
Ammonia Limit
Ltd. 0.424mg/L 0.0891t 0.196t/a
nitrogen （DB44/26-
2001）
pH 6~9 Sewage / /
Integrated
COD 16mg/L 1.19104t 500t/a
Tianjin CSG Emission
Energy-Savin Sewage Standards
Intermittent 2 N/A
g Glass Co., vent （Level 3
Ammonia
Ltd. 0.178mg/L Standard 0.01325t 45t/a
nitrogen
DB12/356-2018
)
pH 6~9 Sewage / /
Wujiang Integrated
COD ≤500mg/L 14.28t 40.59t/a
CSG East Emission
China Sewage Standards
Intermittent 1 N/A
Architectural vent Level 3
Ammonia
Glass Co., ≤45mg/L Standard 0.0368t 0.1444t/a
nitrogen
Ltd. (GB8978-
1996)
Guangdong
Province Water
Pollutant
COD ≤70 mg/L Emission 0.92t 2.44t/a
Limit
（DB44/26-
Sewage 2001）
Dongguan
CSG
vent ， Pollutant
PV-tech Co., Intermittent 20 N/A
Production Emission
Ltd.
plant area Standard for
NOx ≤30mg/m3 1.729t 33.15t/a
Battery Industry
（GB30484-20
13）
VOC Emission
VOCs≤30mg
VOCs Standard for 0.76t 1.93t/a
/m
Furniture
37
CSG Semi-annual Report 2022
Manufacturing
Industry
（DB44/814-20
10）
COD ≤70 mg/L Sewage 22.74t 375.17t/a
Integrated
pH 6~9 / /
Emission
≤240mg/m3 Standards
NOx 0.423t 38.28t/a
Level 3
Sewage Standard
Yichang CSG
vent ； (GB8978-
Display Co., Intermittent 8 N/A
Production 1996)、The
Ltd.
plant area Integrated
≤240mg/m3
Particulates Emission 4.299t 32.724t/a
Standard of Air
Pollutants
（GB16297-19
96）
Treatment of pollutants
All subsidiaries have built pollution prevention and control facilities in accordance with the environmental impact assessment
documents of construction projects and relevant specifications, and adopted air pollution control process such as electrostatic
precipitator + SCR denitrification + semi-dry desulfurization + bag dust removal, ceramic filter cartridge desulfurization,
denitrification and dust removal integration, bag dust removal and water treatment process such as neutralization + precipitation,
fluidized bed, and biological oxidation, for which the technologies used are all in line with the requirements of the "Guidelines for
Feasible Technologies for Pollution Prevention and Control in Glass Manufacturing Industry" and other documents. In the first half
of 2022, the pollution control facilities were in good operation and the pollutants were discharged stably up to the standard. The air
pollutant emission concentrations of most of the subsidiaries were lower than 50% of the emission standard and enjoyed the
preferential policy of halving environmental tax. The pollutant emissions of many subsidiaries reached and implemented local
ultra-low emission standards.
Environmental self-monitoring scheme
The subsidiaries have built and operated on-line monitoring devices for waste water and exhaust gas in accordance with national laws
and regulations, environmental impact assessment documents of construction projects and the requirements of their replies, regularly
carried out comparison and review of the effectiveness of on-line monitoring facilities, and entrusted a third-party unit to carry out
manual environmental monitoring to comprehensively monitor the pollutant discharge. The monitoring frequency is implemented in
accordance with relevant monitoring technical guidelines or pollutant discharge permits.
Emergency response plan system of environment incident
In accordance with the national requirements, all subsidiaries prepared emergency environmental response plan for environment
incident, organized and carried out expert evaluation and filed with the local environmental protection department as required, and
conducted the emergency drill against environmental incidents as planned. And there were no major environmental incidents
38
CSG Semi-annual Report 2022
occurred in the first half of 2022.
Investment in environmental governance and protection and payment of environmental protection tax
CSG has always attached great importance to environmental protection work, actively fulfilled its social responsibilities, and adhered
to the development path of energy conservation, emission reduction, low carbon and environmental protection. To reduce the
generation of pollutants from the source, all glass kilns use natural gas as fuel, by which it is the first enterprise in glass industry to
use clean energy completely as fuel.
The subsidiaries have constructed pollution prevention and control facilities in accordance with the environmental impact assessment
documents of construction projects and relevant specifications, and put them into production and use at the same time as the main
works of the construction projects. In recent years, the Group has invested a lot of funds to improve the level of environmental
protection and pollution control. Since 2018, it has invested heavily in the construction of desulfurization facilities and backup
denitrification facilities every year, by which, the concentration and total amount of pollutant emissions have further dropped
significantly, many subsidiaries have reached and implemented local ultra-low emission standards (particulate matter ≤ 10mg/m3,
NOX ≤ 200mg/m3, SO2 ≤ 50mg/m3), and other subsidiaries' pollutant emissions have been far lower than the national emission
standards (particulate matter≤50mg/m3 , NOX≤700mg/m3, SO2≤400mg/m3).
Enterprises involved in directly discharging pollutants into the environment have declared and paid environmental taxes to the local
tax authorities in full and on time.
Measures taken to reduce carbon emissions during the report period and their effects
√ Applicable □Not applicable
The Company has continuously strengthened the comprehensive utilization and management of resources and energy, actively
fulfilled the corporate social responsibility, taken various measures to save energy and reduce carbon emissions, making our own
contributions to the Country's goal of "Carbon peaking" and "Carbon neutrality". The Group's Operation Department The Group
Operation Department has specially established an energy management team, which is responsible for supervising the energy
consumption management of various subsidiaries, and promotes the energy consumption per unit product and carbon emission per
unit product of the Group's various products to reach the advanced level in the industry. At present, the energy consumption level of
most glass melting furnaces in the flat glass business of CSG has reached the advanced level stipulated by the national standard. At
the same time, CSG has always paid attention to the utilization of waste heat in flat glass factories, and each production base has built
waste heat boilers and waste heat power plants; CSG is also actively developing photovoltaic power plants, most of which have
photovoltaic power plants on the roofs of factories. In the first half of 2022, the Group's waste heat power generation and
photovoltaic power generation totaled about 180 million kwh, equivalent to reducing carbon dioxide emissions by more than 100,000
tons.
Administrative penalty imposed by environmental protection department
Nil
Other environmental information that should be disclosed
Nil
Environmental incidents in the listed company
In the first half of 2022, no environmental accidents occurred.
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CSG Semi-annual Report 2022
II. Social responsibility
In the first half of 2022, the Company focused on the following tasks in fulfilling its social responsibilities:
1. Prevent and eliminate occupational hazards and protect employees' health
CSG always adheres to the concept of "Safety First, Environmental Protection First and Green Development", establishes Safety and
Environmental Protection Department to coordinate the safety and environmental protection management, establishes the Group's
three-level control system of safety, environmental protection, fire protection and occupational health, has a complete safety
management structure and safety management system, strictly implements the safety production responsibility system of all
employees, and all employees have signed the safety production responsibility statement.
The Company attaches great importance to the safety training of employees, strictly strengthens the three-level safety education and
training of new employees and the continuing education of old employees, and organizes various special trainings according to the
characteristics of employees' posts to improve their safety literacy and safety skills. The management of special equipment and
special operations shall be strictly carried out, and special operators shall work with certificates. Special operations can only be
carried out after approval and confirmation of safety measures.Regularly carry out emergency drills, strengthen the construction of
emergency response capabilities, improve emergency response capabilities, eliminate hidden dangers in the bud, and resolutely
defend the last line of defense. Each subsidiary has established a system for the extraction and use of production safety expenses,
which is strictly in accordance with the requirements of relevant laws and regulations to extract and standardize the use of production
safety expenses.The Company has also carried out various hidden dangers investigation of the headquarters and subsidiaries,
accepted the supervision and inspection of local emergency management departments, and organized the rectification and
improvement of various hidden dangers.
In addition, the Company attaches great importance to the standardization construction and operation of safety management. As of
the end of June 2022, CSG has obtained safety standardization certificates for 18 subsidiaries, of which 6 subsidiaries have reached
the second level of safety production standardization, 12 subsidiaries have reached the third level of safety production standardization,
and a few other subsidiaries are also actively creating and applying.
2. Protect the environment and promote sustainable development
As of the first half of 2022, 6 subsidiaries of CSG have been rated as national-level "Green Factories". The Company continues to
strengthen the comprehensive utilization and management of resources and energy, takes various measures to save energy, reduce
emissions and reduce carbon, and makes contributions to the Country's goal of "Carbon peaking" and "Carbon neutrality".The
Group's Operation Department The Group Operation Department has specially established an energy management team, which is
responsible for supervising the energy consumption management of various subsidiaries, and promotes the energy consumption per
unit product and carbon emission per unit product of the Group's various products to reach the advanced level in the industry. At
present, the energy consumption level of most glass melting furnaces in the flat glass business of CSG has reached the advanced level
stipulated by the national standard. Wujiang CSG is shared and promoted by the energy conservation and Comprehensive Utilization
Department of the Ministry of industry and information technology as the "Leader" of energy efficiency in the key energy
consumption industry. Hebei CSG is designated by the Ministry of industry and information technology as the advanced benchmark
"Test Field" of Carbon Peak. At the same time, CSG has always paid attention to the utilization of waste heat in flat glass factories,
and each production base has built waste heat boilers and waste heat power plants; CSG is also actively developing photovoltaic
power plants, most of which have photovoltaic power plants on the roofs of factories. In the first half of 2022, the Group's waste heat
power generation and photovoltaic power generation totaled about 180 million kWh, equivalent to reducing carbon dioxide emissions
by more than 100,000 tons.
In the first half of 2022, all subsidiaries built pollution prevention and control facilities in accordance with the environmental impact
assessment documents of construction projects and relevant specifications. The pollution control facilities were in good operation and
the pollutants were discharged stably up to the standard. The air pollutant emission concentrations of most of the subsidiaries were
lower than 50% of the emission standard and enjoyed the preferential policy of halving environmental tax. The pollutant emissions of
40
CSG Semi-annual Report 2022
many subsidiaries reached and implemented local ultra-low emission standards. Meanwhile, the subsidiaries built and operated
on-line monitoring devices for waste water and exhaust gas in accordance with national laws and regulations, environmental impact
assessment documents of construction projects and the requirements of their replies, regularly carried out comparison and review of
the effectiveness of on-line monitoring facilities, and entrusted a third-party unit to carry out manual environmental monitoring to
comprehensively monitor the pollutant discharge. The monitoring frequency was implemented in accordance with relevant
monitoring technical guidelines or pollutant discharge permits. In addition, in accordance with the national requirements, all
subsidiaries prepared emergency environmental response plan for environment incident, organized and carried out expert evaluation
and filed with the local environmental protection department as required, and conducted the emergency drill against environmental
incidents as planned. And there were no major environmental incidents occurred in the first half of 2022.
3. Participate in public welfare undertakings and fulfill social responsibilities
The Company actively participates in social welfare activities, organizes employees to voluntarily participate in voluntary blood
donation, supports community epidemic prevention and anti-epidemic work, etc., and fulfills corporate social responsibility. In the
first half of 2022, the Company donated funds and materials to various sectors of the society for charity and public welfare activities
such as support and care for the elderly in villages and towns and epidemic prevention.
4. Adhere to independent research and development to provide better energy-saving products
The Company has always adhered to the business strategy of independent research and development and innovation leading. In the
first half of 2022, the Company submitted 76 patent applications and obtained 188 new patent authorizations, including 34 invention
patent authorizations. As of June 30, 2022, the Company had applied for a total of 2,470 patents, including 993 inventions, 1,468
utility model patents, and 9 designs; a total of 1,811 authorized patents, including 337 inventions, 1,465 utility models, and 9 designs.
gathering the wisdom of CSG’s people to improve the industrial science and technology.
5. Protect the rights and interests of shareholders and creditors
The Company ensured the steady development of its main business and improved overall operating performance. In the first half of
2022, the Company achieved operating income of RMB 6.519 billion, a year-on-year decrease of 1.45%; realized net profit of RMB
1.009 billion, a year-on-year decrease of 26.33%; net profit attributable to shareholders of listed companies was RMB 1.001 billion, a
year-on-year decrease of 25.98%. The Company's equity distribution of 2021 had been completed, and the actual cash dividend
amount (including tax) was RMB 614,138,421, accounting for 40.16% of the net profit attributable to shareholders of listed company
in 2021, with continuing return to shareholders. In terms of creditor protection, the Company implemented a prudent financial policy,
and all due loans were repaid on time, which protected the legitimate rights and interests of creditors.
6. Strengthen welfare security and protect the legitimate rights and interests of employees
The Company insists on standardizing the employment behavior, strictly implements the national and local social security
mechanism, and purchases five insurances and one fund and other comprehensive welfare insurance for employees; it has a fair and
unimpeded post promotion system and broaden the development channels of employees; it establishes and implements a statutory
leave system for employees, and employees enjoy various statutory holidays and other paid holidays stipulated by the state; it
actively organizes various employee cultural and sports activities, and employees also enjoy benefits such as employee canteens,
employee physical examinations, subsidies and other benefits. It strengthens occupational health monitoring and management to
ensure the physical and mental health of employees; it cares for employees in need. In the first half of 2022, the Company provided
assistance of RMB 302,600 to 11 employees and their families for helping them overcome difficulties .
7. Social honor recognition
While giving back to the society through steady operation, CSG and its products have been recognized by by all sectors of the society.
Since its establishment 38 years ago, the Company's products have been widely used in many major and important venues, such as
the "Ice Ribbon", "Shougang Ski Jumping Platform", "Snow Ruyi" and other Beijing Winter Olympic venues that will astonish the
world in 2022; CSG’s low radiation coated glass and ultra-thin electronic glass were recognized as "Single Champion Products of
Manufacturing Industry" by the Ministry of Industry and Information Technology of the People's Republic of China; the Company
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CSG Semi-annual Report 2022
has been listed on the list of "Top 100 Industry Leaders in Shenzhen" and "Preferred Brand of Architectural Glass" in Door and
Window Curtain Wall Industry, Annual Outstanding Enterprise in Touch Display Industry, Well-known Brand in Shenzhen, etc., and
it has won the honors of "Leading Enterprise in Promoting High-quality Development" and "Consumer Favorite Brand", etc.
42
CSG Semi-annual Report 2022
Section VI. Important Events
I. Commitments completed by the actual controllers, the shareholders, the related parties, the
purchasers and the Company during the report period and those that hadn’t been completed
execution by the end of the report period
□Applicable √Not applicable
During the report period, there were no commitments made by the Company's actual controller, shareholders, related parties,
acquirers, the Company and other relevant parties that had been fulfilled within the report period and had not been fulfilled within the
time limit by the end of the report period.
II.Particulars about non-operating fund of listed company occupied by controlling
shareholder and other related parties
□Applicable √Not applicable
During the report period, there was no any non-operating fund of listed company occupied by controlling shareholder and other
related parties.
III. Illegal external guarantee
□Applicable √Not applicable
During the report period, there was no illegal external guarantee.
IV. Engaging and dismissing of accounting firm
Whether the semi-annual report has been audited or not
□ Yes √ No
The semi-annual report of the Company has not been audited.
V. Explanation from Board of Directors and Supervisory Committee for “Non-standard audit
report” of the period that issued by accounting firm
□ Applicable √ Not applicable
VI. Explanation from Board of Directors for “Non-standard audit report” of the previous
year
□ Applicable √ Not applicable
VII. Issues related to bankruptcy and reorganization
□ Applicable √ Not applicable
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CSG Semi-annual Report 2022
VIII. Lawsuits
Significant lawsuits and arbitrations
□ Applicable √ Not applicable
During the report period, the Company had no significant lawsuits and arbitrations
Other lawsuits
□ Applicable √ Not applicable
IX. Penalty and rectification
□ Applicable √ Not applicable
X. Integrity of the Company and its controlling shareholders and actual controllers
√Applicable □ Not applicable
The Company has no controlling shareholder and actual controller. According to the disclosure requirements, the Company's largest
shareholder Foresea Life Insurance Co., Ltd., shareholder Zhongshan Runtian Investment Co., Ltd. and shareholder Chengtai Group
Co., Ltd. should disclose the corresponding information. The details are as follows:
(Ⅰ)Integrity of the Company
During the report period, It did not exist that the Company failed to perform the effective judgment of the court or owed
comparatively large amount of debt which was overdue. The Company's integrity is good.
(ⅠⅠ)The integrity of the Company's shareholders
1. According to the reply of the Company's largest shareholder, Foresea Life Insurance Co., Ltd.: As of June 30, 2022, it did not exist
that Foresea Life Insurance Co., Ltd. failed to perform the effective judgment of the court or owed comparatively large amount of
debt which was overdue.
2. According to the reply of the shareholder Zhongshan Runtian Investment Co., Ltd., the original content is as follows:
As of June 30, 2022, the cases executed by Zhongshan Runtian Investment Co., Ltd. (hereinafter referred to as "Zhongshan Runtian")
are as follows:
(1)Due to the case of execution of notarized creditor's rights documents between Great Wall Guoxing Financial Leasing Co., Ltd. and
16 companies including Shenzhen Shum Yip Logistics Group Co., Ltd., Shenzhen Baoneng Investment Group Co., Ltd., Baoneng
Real Estate Co., Ltd. and Zhongshan Runtian Investment Co., Ltd., Great Wall Guoxing Financial Leasing Co., Ltd. applied to the
court for compulsory execution. As the guarantor of the debt of RMB 164 million, Zhongshan Runtian shall be jointly and severally
liable for the debt, and its 5.57 million shares of Jonjee High-tech are used as collateral. At present, Great Wall Guoxing Financial
Leasing Co., Ltd. has applied for compulsory execution and has frozen 5.57 million shares of Jonjee High-tech.
(2)Due to the case of notarizing creditor's rights documents between Chongqing Xinyu Financial Leasing Co., Ltd. and the
defendants Shenzhen Baoneng Investment Group Co., Ltd., Shenzhen Baoneng Automobile Co., Ltd., and Zhongshan Runtian,
Chongqing Xinyu Financial Leasing Co., Ltd. applied to the court for compulsory execution. As the guarantor of the bond of RMB
260 million , Zhongshan Runtian used its 67.65 million CSG A shares as collateral.
(3) Due to the case of notarizing creditor's rights documents between Guangdong Finance Trust Co., Ltd. and Zhongshan Runtian,
Shenzhen Jushenghua Co., Ltd., Shenzhen Baoneng Investment Group Co., Ltd., Baoneng Holdings (China) Co., Ltd., and Mr. Yao
Zhenhua, Yuecai Trust applied to the court for compulsory execution. As the direct borrower of the debt of 720 million yuan,
Zhongshan Runtian used its 26.55 million shares of Jonjee High-tech as collateral. At present, the stock has been frozen and waiting
to be frozen by Guangdong Yuecai Trust Co., Ltd. As of June 30, 2022, Zhongshan Runtian's shares in Jonjee High-tech are still
44
CSG Semi-annual Report 2022
being passively reduced.
(4) Due to the dispute over the loan contract between AVIC Trust Co., Ltd. and Zhongshan Runtian Finance, Zhongshan Runtian, as
the borrower of the debt principal of 1.05 billion yuan, Hefei Baohui Real Estate Co., Ltd. and Hefei Baoneng Real Estate
Development Co., Ltd. The company, Shenzhen Jushenghua Co., Ltd., Shenzhen Shum Yip Logistics Group Co., Ltd., Shenzhen
Baoneng Investment Group Co., Ltd., Chia Tai (Shenzhen) Development Co., Ltd. and Mr. Yao Zhenhua are jointly and severally
liable for the debt.
(5) Due to the case of execution of notarized creditor's rights documents between Chongqing International Trust Co., Ltd. and
Shenzhen Jushenghua Co., Ltd., Zhongshan Runtian, Shenzhen Baoneng Investment Group Co., Ltd. and Mr. Yao Zhenhua, the court
ruled to seal up and freeze the property of RMB 541 million of Jushenghua, Baoneng Group and Yao Zhenhua, and to freeze the 22
million shares of Jonjee High-tech pledged by Zhongshan Runtian to Chongqing Trust. At present, Chongqing Trust has applied for
compulsory execution and has frozen 22 million shares of Jonjee High-tech.
As of June 30, 2022, the details of Zhongshan Runtian's comparatively large amount of debt which was overdue are as follows:
Serial Financial Loan amount Credit Start date of Maturity date of
Borrower
number institution (RMB 0,000) enhancement plan loan loan
Zhongshan Runtian Essence
1 32,923.86 Guarantee+ Pledge 2018/12/27 2021/12/26
Investment Co., Ltd. Securities
Zhongshan Runtian
2 AVIC Trust 105,000.00 Guarantee+ Pledge 2019/9/25 2021/10/31
Investment Co., Ltd.
Zhongshan Runtian
3 Xie Moumou 114,975.00 Guarantee 2021/3/15 2021/12/31
Investment Co., Ltd.
Zhongshan Runtian Guangdong
4 55,448.61 Guarantee+ Pledge 2021/1/8 2022/1/7
Investment Co., Ltd. Finance Trust
Total 308,347.47
As of June 30, 2022, Mr. Yao Zhenhua's personal execution cases are as follows:
(1)Due to the case of disputes over notarized creditor's rights documents between Ping An Trust Co., Ltd. and Shaoxing Baorui Real
Estate Co., Ltd., Baoneng City Co., Ltd., Shenzhen Baoneng Investment Group Co., Ltd., Baoneng Real Estate Co., Ltd., Shanghai
Kaiyue Investment Co., Ltd. and Mr. Yao Zhenhua notarized creditor's rights, which was applied for compulsory execution by Ping
An Trust, Mr. Yao Zhenhua was jointly and severally liable for the principal and interest of the debt of RMB 420 million.
(2) Due to the trust loan dispute between the National Trust and Shenzhen Xinao Trading Co., Ltd., Shenzhen Baoneng Investment
Group Co., Ltd., Mr. Yao Zhenhua and others signed relevant guarantee contracts, ordering Shenzhen Xinao Trading Co., Ltd. to
repay the loan principal of 290 million Yuan and related interests and litigation costs, Shenzhen Baoneng Investment Group Co., Ltd.,
Mr. Yao Zhenhua, etc.was jointly and severally liable for the debts.
(3) Due to the financial borrowing of Zhongrong International Trust Co., Ltd. and Baoneng Automobile Co., Ltd., it applied to the
Beijing Third Intermediate People's Court for notarization on the matter for compulsory execution. Since Mr. Yao Zhenhua provided
a guarantee for this loan business and signed the relevant notarized documents, he was jointly and severally liable for the debt of
1.048 billion yuan.
(4) As Kunlun Trust Co., Ltd. applied to the court for compulsory execution of the notarized creditor's rights documents with Shum
Yip Logistics Group Co., Ltd., Baoneng Century Co., Ltd., Chia Tai (Shenzhen) Development Co., Ltd., Shenzhen Baoneng
Investment Group Co., Ltd., Baoneng Holdings (China) Co., Ltd., Mr. Yao Zhenhua, Mr. Yao Zhenhua assumed joint and several
guarantee liabilities for the debt of RMB 1.31 billion.
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CSG Semi-annual Report 2022
(5)Due to the case of notarizing creditor's rights documents between Guangzhou Xinhua City Development Industry Investment
Enterprise (Limited Partnership) and the defendants Shenzhen Baoneng Investment Group Co., Ltd., Shenzhen Jushenghua Co., Ltd.
and Mr. Yao Zhenhua, Mr. Yao Zhenhua, as the guarantor, signed the relevant notarial documents and assumed joint and several
liabilities for the principal and interest of the creditor's rights of RMB 600 million.
(6) Due to the dispute over the loan contract between Xiamen International Bank Co., Ltd. Fuzhou Branch and Shenzhen Jushenghua
Co., Ltd., Xiamen International Bank Co., Ltd. Fuzhou Branch, which was applied to Shenzhen Intermediate People's Court for
compulsory execution, Mr. Yao Zhenhua, as the guarantor of the loan principal of RMB 2.16 billion, signed the corresponding
guarantee contract and assumed joint and several liabilities for the debt.
(7)Due to the financial debt dispute between Guangdong Finance Trust Co., Ltd. and Zhongshan Runtian , Guangdong Finance Trust
Co., Ltd., which was applied to Shenzhen Intermediate People's Court for compulsory execution, Mr. Yao Zhenhua, as the guarantor
of the loan, signed the corresponding "Guarantee Contract" and was jointly and severally liable for the debt of RMB 720 million.
(8) Due to the financial debt dispute between China Railway Trust Co., Ltd. and Baoneng Automobile Group Co., Ltd. and Kunming
Baojun Real Estate Co., Ltd., which was applied to Chengdu Intermediate People's Court of Sichuan Province for compulsory
execution, as the guarantor of the loan, Mr. Yao Zhenhua signed the The corresponding "Guarantee Contract" and was jointly and
severally liable for the debt of RMB 2.063 billion.
(9) Due to the financial debt dispute between China Railway Trust Co., Ltd. and Baoneng Automobile Group Co., Ltd. and Kunming
Jianpeng Real Estate Development Co., Ltd., which was applied to Chengdu Intermediate People's Court of Sichuan Province for
compulsory execution, Mr. Yao Zhenhua, as the guarantor of the loan, The corresponding "Guarantee Contract" and was jointly and
severally liable for the debt of RMB 836 million.
(10) Due to the case of notarizing creditor's rights documents between Changan International Trust Co., Ltd. and Shenzhen Baoneng
Investment Group Co., Ltd., Wuxi Baoneng Real Estate Co., Ltd., Baoneng Holdings (China) Co., Ltd., Shenzhen Jushenghua Co.,
Ltd., and Mr. Yao Zhenhua, which was applied for compulsory execution by Changan Trust, Mr. Yao Zhenhua, as the guarantor of the
debt, was jointly and severally liable for the debt of RMB 925 million.
(11)Due to the case of notarizing creditor's rights documents between Changan International Trust Co., Ltd. and Shenzhen Baoneng
Investment Group Co., Ltd., Wuxi Baoneng Real Estate Co., Ltd., Baoneng Holdings (China) Co., Ltd., Shenzhen Jushenghua Co.,
Ltd., and Mr. Yao Zhenhua, which was applied for compulsory execution by Changan Trust, Mr. Yao Zhenhua, as the guarantor of the
debt, was jointly and severally liable for the debt of RMB1.117 billion.
(12) Due to the case of notarizing creditor's rights documents between China Minsheng Trust Co., Ltd. and the executors Shenzhen
Baoneng Investment Group Co., Ltd., Hefei Baohui Real Estate Co., Ltd., Shenzhen Baoneng Enterprise Management Co., Ltd.,
Anhui Baoneng Land Co., Ltd., and Mr. Yao Zhenhua, Minsheng Trust applied for compulsory execution. As the guarantor of the
debt, Mr. Yao Zhenhua was jointly and severally liable for the debt of RMB 4.207 billion.
(13)Due to the case of notarizing creditor's rights documents between Shanghai Aijian Trust Co., Ltd. and Shenzhen Shum Yip
Logistics Group Co., Ltd., Shenzhen Baoneng Investment Group Co., Ltd., Zhengda (Shenzhen) Development Co., Ltd., Hefei
Baohui Real Estate Co., Ltd., Hefei Baoneng Real Estate Development Co., Ltd., Shenzhen Jushenghua Co., Ltd., and Mr. Yao
Zhenhua, Aijian Trust applied to the court for compulsory execution. As the guarantor of the debt, Mr. Yao Zhenhua was jointly and
severally liable for the debt of RMB 417 million.
(14) Due to the dispute over the loan contract between Chongqing International Trust Co., Ltd. and Baoneng Automobile Group Co.,
Ltd., Chongqing International Trust applied to the court for compulsory execution, and Mr. Yao Zhenhua, as the guarantor of the debt,
was jointly and severally liable for the debt of RMB 2.186 billion.
(15)Due to the case of notarizing creditor's rights documents between China Minsheng Trust Co., Ltd. and Shenzhen Shum Yip
Logistics Group Co., Ltd., Shenzhen Baoneng Investment Group Co., Ltd., Shenzhen Jushenghua Co., Ltd., and Mr. Yao Zhenhua,
Minsheng Trust applied to the court for compulsory execution, and Mr. Yao Zhenhua, as the guarantor of the debt, was jointly and
severally liable for the debt of RMB 496 million.
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CSG Semi-annual Report 2022
(16)Due to the case of China Minsheng Trust Co., Ltd., Shenzhen Shum Yip Logistics Group Co., Ltd., Shenzhen Baoneng
Investment Group Co., Ltd., Shenzhen Jushenghua Co., Ltd. and Mr. Yao Zhenhua, which was applied to the court for compulsory
execution by Minsheng Trust, Mr. Yao Zhenhua, as the guarantor of the debt, was jointly and severally liable for the debt of RMB
2.238 billion.
(17) Due to the financial loan contract dispute between AVIC Trust Co., Ltd. and Shenzhen Lingdao Auto Life Service Co., Ltd.,
Shenzhen Baoneng Investment Group Co., Ltd., Shenzhen Jushenghua Co., Ltd.,Shenzhen Shum Yip Logistics Group Co., Ltd.,
Tengchong Baoneng Real Estate Co., Ltd., Zhejiang Jintian Real Estate Development Co., Ltd., Tengchong Beihai Wetland
Ecotourism Investment Co., Ltd., Mr. Yao Zhenhua, AVIC Trust applied to the court for compulsory execution, and Mr. Yao Zhenhua,
as the guarantor of the debt, was jointly and severally liable for the debt of RMB 984 million.
(18) Due to the financial loan contract dispute between AVIC Trust Co., Ltd. and Shenzhen Shum Yip Logistics Group Co., Ltd.,
Shenzhen Baoneng Investment Group Co., Ltd., Shenzhen Jushenghua Co., Ltd., Baoneng Real Estate Co., Ltd., and Wuhu Baoneng
Real Estate Co., Ltd. The company, Baoneng City Co., Ltd., Tengchong Beihai Wetland Eco-tourism Investment Co., Ltd., Mr. Yao
Zhenhua, which was applied to the court by AVIC Trust for enforcement, Mr. Yao Zhenhua, as the guarantor of the debt, was jointly
and severally liable for the debt of RMB 563 million.
(19) Due to the loan contract dispute between Ping An Bank Co., Ltd. Shenzhen Branch and Shenzhen Shum Yip Logistics Group
Co., Ltd., Shenzhen Jushenghua Co., Ltd., Shenzhen Baoneng Investment Group Co., Ltd., Baoneng Real Estate Co., Ltd., Shenzhen
First Space Operation Management Co., Ltd., Mr. Yao Zhenhua and Baoneng City Co., Ltd., which was applied to the court by
Shenzhen Branch of Ping An Bank Co., Ltd. for execution, Mr. Yao Zhenhua, as the guarantor of the debt, was jointly and severally
liable for the debt of RMB 3.433 billion.
(20) Due to the execution of litigation costs of the loan contract dispute between Shenzhen Branch of Ping An Bank Co., Ltd. and
Baoneng City Co., Ltd., Baoneng Real Estate Co., Ltd., Baoneng Holdings (China) Co., Ltd., Mr. Yao Zhenhua and Shenzhen Liujin
Investment Co., Ltd., the Higher People's Court of Guangdong Province appointed Shenzhen Intermediate People's Court of
Guangdong Province to execute the case. Mr. Yao Zhenhua, as the guarantor of the loan contract dispute, was jointly and severally
liable for the litigation costs of RMB 13.9208 million arising from the loan contract dispute.
(21) due to the loan contract dispute between Shenzhen Branch of Ping An Bank Co., Ltd. and Baoneng City Co., Ltd., Baoneng Real
Estate Co., Ltd., Baoneng Holdings (China) Co., Ltd., Mr. Yao Zhenhua and Shenzhen Liujin Investment Co., Ltd., Shenzhen Branch
of Ping An Bank Co., Ltd. applied to the court for execution. Mr. Yao Zhenhua, as the guarantor of the debt, was jointly and severally
liable for the debt of RMB 5.562 billion.
(22)Due to the case of execution of notarized creditor's rights documents between Chongqing International Trust Co., Ltd. and
Shenzhen Jushenghua Co., Ltd., Zhongshan Runtian, Shenzhen Baoneng Investment Group Co., Ltd., and Mr. Yao Zhenhua,
Chongqing International Trust Co., Ltd. which was applied to the court by Chongqing International Trust Co., Ltd. for execution, and
Mr. Yao Zhenhua, as the guarantor of the debt, was jointly and severally liable for the debt of RMB 541 million.
(23) Due to the case of Tibet Bank Co., Ltd. v. Lhasa Baochuang Automobile Sales Co., Ltd., Mr. Yao Zhenhua, Shenzhen Baoneng
Investment Group Co., Ltd., Shenzhen Jushenghua Co., Ltd., and Shenzhen Shumye Logistics Group Co., Ltd. was jointly and
severally liable for the litigation fee of the loan contract dispute, which was executed by the Lhasa Intermediate People's Court of the
Tibet Autonomous Region, Mr. Yao Zhenhua, as the guarantor of the loan contract dispute, was jointly and severally liable for the
litigation costs of RMB 4.1867 million arising from the loan contract dispute.
(24) Due to the case that Bank of Tibet Co., Ltd. sued Lhasa baochuang Automobile Sales Co., Ltd., Mr. Yao Zhenhua, Shenzhen
Baoneng Investment Group Co., Ltd., Shenzhen Jushenghua Co., Ltd. and Shenzhen Shenye Logistics Group Co., Ltd. were jointly
and severally liable for the debts arising from the loan contract dispute and were executed by Lhasa Intermediate People's Court of
Tibet Autonomous Region. Mr. Yao Zhenhua, as the guarantor of the loan contract dispute, was jointly and severally liable for the
litigation costs of RMB 829 million arising from the loan contract dispute, which has been paid off.
(25) Due to the case that Chongqing International Trust Co., Ltd. sued Baoneng Automobile Group Co., Ltd., Nanjing Baoneng
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CSG Semi-annual Report 2022
Urban Development Co., Ltd., Shenzhen Baoneng Investment Group Co., Ltd., Baoneng Holdings (China) Co., Ltd., and Yao
Zhenhua, as the guarantor of the debt, Mr.Yao Zhenhua was executed by the Chongqing No. 5 Intermediate People's Court, and he
was jointly and severally liable for the debt of RMB 2.121 billion.
Mr. Yao Zhenhua had no debt with comparatively amount that had not been paid when due.
3. According to the reply of the shareholder Chengtai Group Co., Ltd.: as of June 30, Chengtai Group Co., Ltd. had not received
relevant information on share freezing and litigation, and it had no debt with comparatively amount that had not been paid when due.
XI. Major related transaction
1. Related transaction with routine operation concerned
□ Applicable √ Not applicable
2. Related transaction with acquisition of assets or equity, sales of assets or equity concerned
□ Applicable √ Not applicable
3. Related transaction with jointly external investment concerned
□ Applicable √ Not applicable
4. Credits and liabilities with related parties
□ Applicable √ Not applicable
5. Transactions with related financial companies
□ Applicable √ Not applicable
6. Transactions with financial companies controlled by the company
□ Applicable √ Not applicable
7. Other major related transaction
□ Applicable √ Not applicable
XII. Significant contracts and their implementation
1. Trusteeship, contract and leasing
(1) Trusteeship
□ Applicable √ Not applicable
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CSG Semi-annual Report 2022
(2) Contract
□ Applicable √ Not applicable
(3) Leasing
□ Applicable √ Not applicable
2. Major guarantees
√Applicable □ Not applicable
Unit: RMB 0,000
External guarantee of the Company and its subsidiaries(barring the guarantee for subsidiaries)
Guaran
Actual date Counter- Complet
e tee for
Name of the Related of happening Actual Collatera Warranties
Guarantee Guarantee Guarant related
Company Announcement (Date of guarante l circumsta impleme
limit type ee term party
guaranteed disclosure date signing e limit (if any) nce ntation
(Yes or
agreement) (if any) or not
no)
Total amount of approving external guarantee in Total amount of actual occurred external
0 0
report period (A1) guarantee in report period (A2)
Total amount of approved external guarantee at Total balance of actual external guarantee
0 0
the end of report period (A3) at the end of report period (A4)
Guarantee of the Company for the subsidiaries
Counter- Guaran
Actual date Complet
Warranties e tee for
Name of the Related of happening Actual Collatera
Guarantee Guarantee Guarant related
Company Announcement (Date of guarante l circumsta impleme
limit type ee term party
guaranteed disclosure date signing e limit (if any) nce ntation
(Yes or
agreement) (if any) or not
no)
Xianning CSG Joint
Photovoltaic 2022/4/25 6,000 2022/5/26 2,490 liability None None 1 year No No
Glass Co., Ltd. guarantee
Xianning CSG Joint
Photovoltaic 2020/12/19 5,000 2021/3/22 1,500 liability None None 1 year No No
Glass Co., Ltd. guarantee
Xianning CSG Joint
Energy-Saving 2022/4/25 5,000 2022/5/27 2,000 liability None None 1 year No No
Glass Co., Ltd. guarantee
Xianning CSG Joint
Energy-Saving 2022/4/25 5,000 2022/5/25 2,500 liability None None 1 year No No
Glass Co., Ltd. guarantee
Yichang Nanbo Joint
Photoelectric 2021/2/19 1,824 2021/3/19 1,200 liability None None 1 year No No
Glass Co., Ltd. guarantee
Yichang Nanbo Joint
Photoelectric 2021/8/10 1,824 2021/12/17 liability None None 1 year No No
Glass Co., Ltd. guarantee
Joint
Dongguan CSG 2021/8/10 3,000 2021/11/29 3,000 None None 1 year No No
liability
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CSG Semi-annual Report 2022
PV-tech Co., Ltd. guarantee
Joint
Dongguan CSG
2021/8/10 10,000 2021/8/13 923 liability None None 1 year No No
PV-tech Co., Ltd.
guarantee
Joint
Hebei Panel
2021/2/19 3,000 liability None None 1 year Yes No
Glass Co., Ltd.
guarantee
Joint
Hebei Panel
2022/4/25 2,500 2022/5/16 liability None None 3 years No No
Glass Co., Ltd.
guarantee
Joint
Hebei Panel
2021/10/30 16,500 2021/12/17 6,210 liability None None 5 years No No
Glass Co., Ltd.
guarantee
Joint
Hebei CSG Glass
2021/2/19 5,000 liability None None 1 year Yes No
Co., Ltd.
guarantee
Joint
Hebei CSG Glass
2022/4/25 2,500 2022/5/16 liability None None 3 years No No
Co., Ltd.
guarantee
Dongguan CSG Joint
Architectural 2021/6/29 5,000 2021/9/13 4,800 liability None None 2 years No No
Glass Co., Ltd. guarantee
Dongguan CSG Joint
Architectural 2022/4/25 10,000 2022/5/17 liability None None 1 year No No
Glass Co., Ltd. guarantee
Dongguan CSG Joint
Architectural 2021/10/30 10,000 2021/5/18 1,631 liability None None 1 year Yes No
Glass Co., Ltd. guarantee
Joint
Xianning CSG
2022/4/25 7,000 2022/5/27 6,500 liability None None 1 year No No
Glass Co., Ltd.
guarantee
Joint
Xianning CSG
2021/12/25 15,000 2022/3/1 liability None None 7 years No No
Glass Co., Ltd.
guarantee
Joint
Xianning CSG
2021/12/25 50,000 2022/3/9 12,711 liability None None 7 years No No
Glass Co., Ltd.
guarantee
Joint
Xianning CSG
2021/6/29 20,000 2021/7/7 18,689 liability None None 5 years No No
Glass Co., Ltd.
guarantee
Joint
Chengdu CSG
2021/12/25 5,000 2022/2/17 4,500 liability None None 1 year No No
Glass Co., Ltd.
guarantee
Joint
Chengdu CSG
2021/2/19 5,000 2021/3/8 liability None None 1 year Yes No
Glass Co., Ltd.
guarantee
Sichuan CSG
Joint
Energy
2021/12/25 8,000 2022/4/15 4,200 liability None None 1 year No No
Conservation
guarantee
Glass Co., Ltd.
Sichuan CSG Joint
2022/4/25 10,000 2022/6/6 8,000 None None 1 year No No
Energy liability
50
CSG Semi-annual Report 2022
Conservation guarantee
Glass Co., Ltd.
Sichuan CSG
Joint
Energy
2021/6/8 5,000 2021/8/24 liability None None 1 year No No
Conservation
guarantee
Glass Co., Ltd.
Joint
Wujiang CSG
2021/2/19 10,000 2021/3/12 6,236 liability None None 4 years No No
Glass Co., Ltd.
guarantee
Joint
Wujiang CSG
2022/4/25 10,000 2022/5/18 780 liability None None 1 year No No
Glass Co., Ltd.
guarantee
Joint
Wujiang CSG
2021/12/25 10,000 2022/2/17 747 liability None None 1 year Yes No
Glass Co., Ltd.
guarantee
Joint
Wujiang CSG
2021/2/19 5,000 2021/3/8 liability None None 1 year Yes No
Glass Co., Ltd.
guarantee
Joint
Wujiang CSG
2021/6/8 5,000 2021/9/26 2,852 liability None None 1 year No No
Glass Co., Ltd.
guarantee
Joint
Wujiang CSG
2021/2/19 10,000 2021/3/26 liability None None 1 year Yes No
Glass Co., Ltd.
guarantee
Wujiang CSG
Joint
East China
2020/12/5 10,000 2020/12/9 liability None None 1 year Yes No
Architectural
guarantee
Glass Co., Ltd.
Wujiang CSG
Joint
East China
2022/4/25 7,000 2022/5/18 liability None None 1 year No No
Architectural
guarantee
Glass Co., Ltd.
Wujiang CSG
Joint
East China
2021/2/19 12,400 2021/5/19 2,572 liability None None 5 years Yes No
Architectural
guarantee
Glass Co., Ltd.
Wujiang CSG
Joint
East China
2022/4/25 12,400 2022/5/26 2,572 liability None None 5 years No No
Architectural
guarantee
Glass Co., Ltd.
Wujiang CSG
Joint
East China
2021/12/25 3,000 liability None None 2 years No No
Architectural
guarantee
Glass Co., Ltd.
Dongguan CSG Joint
Solar Glass Co., 2021/8/10 10,000 2021/9/13 3,460 liability None None 1 year No No
Ltd. guarantee
Dongguan CSG Joint
Solar Glass Co., 2021/2/19 5,000 2021/3/8 3,796 liability None None 1 year No No
Ltd. guarantee
Dongguan CSG Joint
2022/4/25 10,000 2022/5/17 2,124 None None 1 year No No
Solar Glass Co., liability
51
CSG Semi-annual Report 2022
Ltd. guarantee
Dongguan CSG Joint
Solar Glass Co., 2021/10/30 20,000 2020/12/25 2,000 liability None None 1 year Yes No
Ltd. guarantee
Dongguan CSG Joint
Solar Glass Co., 2022/4/25 8,000 2022/6/7 1,214 liability None None 1 year No No
Ltd. guarantee
Dongguan CSG Joint
Solar Glass Co., 2022/4/25 9,000 2022/5/31 1,661 liability None None 4 years No No
Ltd. guarantee
Dongguan CSG Joint
Solar Glass Co., 2021/6/8 6,711 2021/7/7 liability None None 1 year No No
Ltd. guarantee
Qingyuan CSG
New Joint
Energy-Saving 2021/6/8 4,330 2021/8/25 1,425 liability None None 1 year No No
Materials Co., guarantee
Ltd.
Qingyuan CSG
New Joint
Energy-Saving 2021/8/10 4,500 2021/9/7 liability None None 1 year No No
Materials Co., guarantee
Ltd.
Qingyuan CSG
New Joint
Energy-Saving 2022/4/25 10,000 2022/5/17 3,000 liability None None 1 year No No
Materials Co., guarantee
Ltd.
Qingyuan CSG
New Joint
Energy-Saving 2021/12/25 5,000 liability None None 1 year No No
Materials Co., guarantee
Ltd.
Qingyuan CSG
New Joint
Energy-Saving 2019/12/10 5,000 2020/4/26 liability None None 1 year Yes No
Materials Co., guarantee
Ltd.
Qingyuan CSG
New Joint
Energy-Saving 2019/12/10 50,000 2020/4/26 10,524 liability None None 5 years No No
Materials Co., guarantee
Ltd.
Joint
Yichang CSG
2021/10/30 3,000 2021/12/1 2,943 liability None None 1 year No No
Display Co., Ltd.
guarantee
Joint
Yichang CSG
2022/4/25 3,000 2022/6/24 2,800 liability None None 1 year No No
Display Co., Ltd.
guarantee
Tianjin CSG Joint
Energy-Saving 2021/6/8 3,000 2021/7/14 liability None None 1 year No No
Glass Co., Ltd. guarantee
52
CSG Semi-annual Report 2022
Tianjin CSG Joint
Energy-Saving 2022/4/25 5,000 2022/6/21 600 liability None None 1 year No No
Glass Co., Ltd. guarantee
Tianjin CSG Joint
Energy-Saving 2021/2/19 7,000 2021/3/23 6,464 liability None None 4 years No No
Glass Co., Ltd. guarantee
Tianjin CSG Joint
Energy-Saving 2021/6/29 2,000 2021/11/26 1,654 liability None None 1 year No No
Glass Co., Ltd. guarantee
Anhui CSG New
Joint
Energy Material
2021/8/10 70,000 2021/10/19 31,342 liability None None 6 years No No
Technology Co.,
guarantee
Ltd.
Anhui CSG New
Joint
Energy Material
2021/8/10 180,000 2021/8/28 79,887 liability None None 7 years No No
Technology Co.,
guarantee
Ltd.
Anhui CSG New
Joint
Energy Material
2021/12/25 50,000 2022/3/30 9,256 liability None None 9 years No No
Technology Co.,
guarantee
Ltd.
Anhui CSG New Joint
Quartz Material 2021/6/29 9,000 2021/9/13 7,442 liability None None 5 years No No
Co., Ltd guarantee
Zhaoqing CSG Joint
Energy-Saving 2022/4/25 5,000 2022/5/30 1,000 liability None None 3 years No No
Glass Co., Ltd. guarantee
Zhaoqing CSG Joint
Energy-Saving 2020/9/22 34,000 2020/9/25 23,055 liability None None 5 years No No
Glass Co., Ltd. guarantee
Dongguan CSG Joint
Architectural 2022/4/25 2022/6/22 2,661 liability None None 1 year No No
Glass Co., Ltd. guarantee
Dongguan CSG Joint
Solar Glass Co., 2022/4/25 2022/6/22 liability None None 1 year No No
Ltd. guarantee
Joint
Dongguan CSG
2022/4/25 2022/6/22 216 liability None None 1 year No No
PV-tech Co., Ltd.
guarantee
Qingyuan CSG
New 48,000 Joint
Energy-Saving 2021/6/29 2021/7/1 liability None None 1 year Yes No
Materials Co., guarantee
Ltd.
Anhui CSG New
Joint
Energy Material
2022/4/25 2022/6/22 12,153 liability None None 1 year No No
Technology Co.,
guarantee
Ltd.
Joint
Wujiang CSG
2022/4/25 2022/6/22 1,831 liability None None 1 year No No
Glass Co., Ltd.
guarantee
Chengdu CSG 2022/4/25 2022/6/22 900 Joint None None 1 year No No
53
CSG Semi-annual Report 2022
Glass Co., Ltd. liability
guarantee
Sichuan CSG
Joint
Energy
2022/4/25 2022/6/22 332 liability None None 1 year No No
Conservation
guarantee
Glass Co., Ltd.
Joint
Xianning CSG
2022/4/25 2022/6/22 2,424 liability None None 1 year No No
Glass Co., Ltd.
guarantee
Xianning CSG Joint
Energy-Saving 2022/4/25 2022/6/22 282 liability None None 1 year No No
Glass Co., Ltd. guarantee
Wujiang CSG
Joint
East China
2022/4/25 2022/6/22 1,876 liability None None 1 year No No
Architectural
guarantee
Glass Co., Ltd.
Tianjin CSG Joint
Energy-Saving 2022/4/25 2022/6/22 1,955 liability None None 1 year No No
Glass Co., Ltd. guarantee
Joint
Hebei Panel
2020/6/24 liability None None 1 year Yes No
Glass Co., Ltd.
guarantee
Dongguan CSG
Joint
Jingyu New
2020/2/25 liability None None 1 year Yes No
Material Co.,
guarantee
Ltd.
Zhaoqing CSG Joint
Energy-Saving 2022/4/25 liability None None 1 year No No
Glass Co., Ltd. guarantee
Total amount of approving guarantee for Total amount of actual occurred guarantee for
175,400 93,285
subsidiaries in report period (B1) subsidiaries in report period (B2)
Total amount of approved guarantee for Total balance of actual guarantee for subsidiaries
783,089 309,940
subsidiaries at the end of reporting period (B3) at the end of reporting period (B4)
Guarantee situation of subsidiaries to subsidiaries
Counter- Guaran
Actual date Complet
Warranties e tee for
Name of the Related of happening Actual Collatera
Guarantee Guarantee Guarant related
Company Announcement (Date of guarante l circumsta impleme
limit type ee term party
guaranteed disclosure date signing e limit (if any) nce ntation
(Yes or
agreement) (if any) or not
no)
Total amount of approving guarantee for Total amount of actual occurred guarantee for
0 0
subsidiaries in report period (C1) subsidiaries in report period (C2)
Total amount of approved guarantee for Total balance of actual guarantee for subsidiaries
0 0
subsidiaries at the end of reporting period (C3) at the end of reporting period (C4)
Guarantee situation of subsidiaries to subsidiaries
Total amount of approving guarantee in report Total amount of actual occurred guarantee in
175,400 93,285
period (A1+B1+C1) report period (A2+B2+C2)
Total amount of approved guarantee at the end of Total balance of actual guarantee at the end of
783,089 309,940
report period (A3+B3+C3) report period (A4+B4+C4)
The proportion of the total amount of actual guarantee in the net
26.23%
assets of the Company(that is A4+ B4+C4)
54
CSG Semi-annual Report 2022
Including:
Amount of guarantee for shareholders, actual controller and its
0
related parties(D)
The debts guarantee amount provided for the guaranteed parties
28,194
whose assets-liability ratio exceed 70% directly or indirectly(E)
Proportion of total amount of guarantee in net assets of the
0
Company exceed 50%(F)
Total amount of the aforesaid three guarantees(D+E+F) 28,194
For the guarantee contract not yet due, guarantee responsibility
incurred in the reporting period or there is evidence showing the N/A
description of the possible related discharge duty (if any)
Explanations on external guarantee against regulated procedures(if
N/A
any）
Note:
1. The Company's 2021 Annual General Meeting of Shareholders reviewed and approved the "Proposal on the 2022 Annual Guarantee Plan", and the
General Meeting of Shareholders agreed to provide guarantee for the 2022 annual credit line of financial institutions of subsidiaries at all levels
(hereinafter referred to as "subsidiaries") within the scope of the consolidated statements with a total amount not exceeding the equivalent value of
16.268 billion yuan (including the effective and unexpired limit). Among them, the total amount of guarantee shall not exceed the equivalent of RMB
15.018 billion (including the effective and unexpired amount) for each subsidiary with an asset liability ratio of less than 70%, and the total amount of
guarantee shall not exceed the equivalent of RMB 1.25 billion (including the effective and unexpired amount) for each subsidiary with an asset
liability ratio of more than 70%. All external guarantees of the Company are guarantees for subsidiaries within the scope of consolidated statements.
As of June 30, 2022, the actual guarantee balance was RMB 3,099.4 million (of which the actual guarantee balance with an asset liability ratio of
more than 70% (inclusive) was RMB 281.94 million), accounting for 27.12% of the parent company's net assets of RMB 11,429.66 million at the end
of 2021 and 15.54% of the total assets of RMB 19,939.36 million; Accounting for 26.23% of the net assets of RMB 11,817.42 million attributable to
the parent company at the end of the report period and 13.79% of the total assets of RMB 22,471.18 million. The Company has no overdue guarantee.
2. The Company's 2021 Annual General Meeting of Shareholders reviewed and approved the "Proposal on the Development of Asset Pool Business in
2022". In order to meet the overall management of the Company's assets such as bills and letters of credit and to meet the needs of financial
institutions' product upgrades, the General Meeting of Shareholders approved the Company and its subsidiaries. The Company conducts asset pool
business of no more than RMB 800 million. Under the premise of controllable risks, various guarantee methods such as maximum pledge, general
pledge, deposit certificate pledge, bill pledge, and margin pledge can be adopted for business development. As of June 30, 2022, the actual pledge
amount and financing balance of the asset pool business are RMB 0 yuan.
3. Entrusted Financing
√ Applicable □ Not applicable
Unit: RMB 0,000
Amount of impairment
Amount not
Source of funds for Amount of entrusted Outstanding accrued for overdue
Type collected after
entrusted financing financing balance uncollected entrusted
the due date
financing
Structured deposit Own funds 132,816 120,900 0 0
Total 132,816 120,900 0 0
Details of high-risk entrusted financing with significant single amount or low security and poor liquidity
□Applicable √ Not applicable
55
CSG Semi-annual Report 2022
Entrusted financing expected to be unable to recover the principal or other circumstances that may lead to impairment
□Applicable √ Not applicable
4. Other major contracts
√Applicable □ Not applicable
Name of Impleme
Name of Total ntation
the other Subjec Relate
company Contract contract as of the
Pricing d-party Associ Date of Disclosure
party t signing amount end of
signing the principle transac ation disclosure index
signing the matter date (RMB the
tion or
contract 0,000) report
contract not
period
LONGi
Solar
Technology
Ltd.,
Zhejiang
LONGi
Solar
Technology
Ltd.,
TaizhouLO
NGi Solar
Technology
Ltd.,
Wujiang
Yinchuan
CSG Glass
LONGi
Co., Ltd., Photov
July Notice
Solar Fair In August 3,
Dongguan oltaic 650,000 No Nil No.:
Technology 31,2020 value progress 2020
CSG Solar glass 2020-060
Ltd.,Chuzh
Glass Co.,
ouLONGi
Ltd.
Solar
Technology
Ltd.,
Datong
LONGi
Solar
Technology
Ltd.,
LONGi
(H.K.)
Trading
Limited,
LONGi
56
CSG Semi-annual Report 2022
(KUCHIN
G) SDN.
BHD.,
XianyangL
ONGi Solar
Technology
Ltd.,
Jiangsu
LONGi
Solar
Technology
Ltd.,
JiaxingLO
NGi Solar
Technology
Ltd.,Xi'anL
ONGi
Green
Building
Technology
Ltd.
XIII. Statement on other important matters
√Applicable □ Not applicable
1. Ultra-short-term financing bills
On June 15, 2020, the Third Extraordinary Shareholders’ General Meeting 2020 of CSG deliberated and approved the proposal on
application for registration and issuance of ultra-short-term financing bills and medium-term notes, which agreed that the Company
should register and issue ultra-short-term financing bills with a registered amount not exceeding 1.5 billion yuan (the limit is not
subject to the limit of 40% of net assets).With the period of validity of the quota not longer than two years, such ultra-short-term
financing bills will be issued by installments in accordance with the actual capital needs of the Company and the situation of
inter-bank market funds. On September 4, 2020, the NAFMII held its 102nd registration meeting in 2020 and decided to accept the
registration of ultra-short-term financing bills with a total of 1.5 billion yuan and a validity period of two years. On May 16, 2022,
the Company's 2021 annual general meeting reviewed and approved the "Proposal on Application for Registration and Issuance of
Medium-Term Notes and Ultra-short-term Financing Bills", which agreed that the Company would register and issue ultra-short-term
financing bills with a registered amount of not more than 1 billion yuan, The Company can issue one or more times within the
validity period of the registration according to the actual capital needs and the capital situation of the inter-bank market.
2. Medium-term notes
On June 15, 2020, the Third Extraordinary Shareholders’ General Meeting 2020 of CSG deliberated and approved the proposal on
application for registration and issuance of ultra-short-term financing bills and medium-term notes, which agreed that the Company
should register and issue medium-term notes with a registered amount not exceeding 1.5 billion yuan. With the period of validity of
the quota not longer than two years, such ultra-short-term financing bills will be issued by installments in accordance with the actual
57
CSG Semi-annual Report 2022
capital needs of the Company and the situation of inter-bank market funds. On September 4, 2020, the NAFMII held the 102nd
registration meeting in 2020 and decided to accept the company's registration of medium-term notes with a total of 1.5 billion yuan
and a validity period of two years. On May 16, 2022, the Company's 2021 annual general meeting reviewed and approved the
"Proposal on Application for Registration and Issuance of Medium-term Notes and Ultra-short-term Financing Bills", which agreed
that the Company would register and issue medium-term notes with a registered amount of not more than 2 billion yuan. Actual
capital needs and inter-bank market capital status, can be issued one or more times within the validity period of registration.
3 .Public issuance of corporate bonds
On March 2, 2017, the 2nd Extraordinary General Meeting of Shareholders in 2017 reviewed and approved “the Proposal on the
Public Issuance of Corporate Bonds for Qualified Investors". On February 27, 2019, the First Extraordinary General Meeting of
Shareholders in 2019 The “Proposal on Extending the Validity Period of the Shareholders' Meeting for the Public Offering of
Corporate Bonds to Qualified Investors” agreed to issue corporate bonds with a total issue of no more than RMB 2 billion and a term
of no more than 10 years. On June 26, 2019, the Company received the “Approval of Approving CSG Holding Co., Ltd. to Issue
Corporate Bonds to Qualified Investors” issued by China Securities Regulatory Commission (ZJXK [2019] No. 1140). On March 24,
2020 and March 25, 2020, the Company issued the first batch of corporate bonds with total amount of RMB 2 billion and valid term
of 3 years at the issuance rate of 6%, which will be redeemed on March 25, 2023 (for details, please refer to "Section IX Bonds").
4. Public issuance of A-share convertible corporate bonds
On July 11, 2022, the Company's 2nd Extraordinary General Meeting of Shareholders in 2022 reviewed and approved relevant
proposals on the Company's public issuance of A-share convertible corporate bonds, and agreed to issue A-share convertible
corporate bonds. The total amount of funds raised would not exceed RMB 2,800,000,000 (including RMB 2,800,000,000), with a
term of 6 years from the date of issuance.
5.Passive reduction of Southern Glass A shares held by Zhongshan Runtian Investment Co., Ltd.
On July 12, 2022, the Company received the "Notice Letter" from Chongqing Xinyu Financial Leasing Co., Ltd. (hereinafter referred
to as "Chongqing Xinyu"). According to the "Notification Letter", the Shenzhen Intermediate Court ruled to sell 67.65 million
"Southern Glass A" shares (stock code: 000012) held by Zhongshan Runtian Investment Co., Ltd. (hereinafter referred to as
"Zhongshan Runtian"). On July 27, July 28 and July 29, 2022, Chongqing Xinyu forcibly sold a total of 55.6289 million Southern
Glass A shares held by Zhongshan Runtian through block transactions, accounting for 1.81% of the Company's total share capital.
After the passive reduction of the aforementioned shares, the number of shares held by Zhongshan Runtian decreased from
86,633,447 shares to 31,004,547 shares, and the shareholding ratio decreased from 2.82% to 1.01%.
6. The matter of the special fund of RMB 171 million for talent introduction
Regarding the special fund of RMB 171 million for talent introduction, the Company filed an infringement compensation lawsuit
against Zeng Nan and others and Yichang Hongtai Real Estate Co., Ltd. on December 15, 2021, and Shenzhen Intermediate People's
Court officially accepted it on January 28, 2022. The first trial of the case was completed in Shenzhen Intermediate People's Court on
June 21, 2022, and is currently awaiting judgment.
XIV. Significant events of subsidiaries of the Company
□ Applicable √ Not applicable
58
CSG Semi-annual Report 2022
Section VII. Changes in Shares and Particulars about Shareholders
I. Changes in Share Capital
1. Changes in Share Capital
Unit: Share
Before the Change (Note)
Increase/Decrease in the Change (+, -) After the Change
New Capitalizatio
Proporti Bonus Proportion
Amount shares n of public Others Subtotal Amount
on (%) shares (%)
issued reserve
I. Restricted shares 4,736,796 0.15% -188,500 -188,500 4,548,296 0.15%
1. State-owned shares
2. State-owned legal
person’s shares
3. Other domestic
4,736,796 0.15% -188,500 -188,500 4,548,296 0.15%
shares
Including: Domestic
legal person’s shares
Domestic natural
4,736,796 0.15% -188,500 -188,500 4,548,296 0.15%
person’s shares
4. Foreign shares
Including: Foreign
legal person’s shares
Foreign natural
person’s shares
II. Unrestricted shares 3,065,955,311 99.85% 188,500 188,500 3,066,143,811 99.85%
1. RMB Ordinary
1,956,586,251 63.72% 188,500 188,500 1,956,774,751 63.72%
shares
2. Domestically listed
1,109,369,060 36.13% 1,109,369,060 36.13%
foreign shares
3. Overseas listed
foreign shares
4. Others
III.Total shares 3,070,692,107 100% 3,070,692,107 100%
Reason for equity changes
√Applicable □Not applicable
During the report period, China securities registration and clearing Co., Ltd. Adjusted the locked-up shares of senior management
in accordance with regulations, and the Company’s restricted shares and unrestricted shares changed accordingly.
Approval on equity changes
□Applicable √Not applicable
Transfer of ownership for equity changes
□Applicable √Not applicable
59
CSG Semi-annual Report 2022
Implementation progress of share buyback
□Applicable √Not applicable
Implementation progress of share buyback reduction through centralized bidding
□Applicable √Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to common
shareholders of Company in the latest year and period
□Applicable √Not applicable
Other information necessary to be disclosed or need to be disclosed under requirement from security regulators
□Applicable √ Not applicable
2. Changes of restricted shares
√Applicable □ Not applicable
Unit: Share
Number of Number Number of Number of
shares of shares shares shares
Shareholders’
restricted at released restricted restricted at Reason for restriction Released date
name
the beginning in the increased in the end of
of the period Period the Period the Period
Releasing of executive lockup
Executive lockup stocks of
Chen Lin 1,217,299 1,217,299 stocks will be implemented
1,217,299 shares
according to relevant policies.
Releasing of executive lockup
Executive lockup stocks of
He Jin 673,200 673,200 stocks will be implemented
673,200 shares
according to relevant policies.
Releasing of executive lockup
Executive lockup stocks of
Wang Wenxin 0 115,950 115,950 stocks will be implemented
115,950 shares
according to relevant policies.
Releasing of executive lockup
Executive lockup stocks of
Wang Jian 759,000 759,000 stocks will be implemented
759,000 shares
according to relevant policies.
Releasing of executive lockup
Executive lockup stocks of
Yang Xinyu 869,499 869,499 stocks will be implemented
869,499 shares
according to relevant policies.
Releasing of executive lockup
Executive lockup stocks of
Lu Wenhui 1,217,298 304,325 912,973 stocks will be implemented
912,973 shares
according to relevant policies.
Releasing of executive lockup
Executive lockup stocks of
Gao Changkun 500 125 375 stocks will be implemented
375 shares
according to relevant policies.
60
CSG Semi-annual Report 2022
Total 4,736,796 304,450 115,950 4,548,296 -- --
Note:The change in restricted shares during the reporting period was caused by China Securities Depository and Clearing Co., Ltd.'s
adjustment of the locked-up shares of senior executives in accordance with regulations.
II. Issuance and listing of Securities
□Applicable √ Not applicable
III.Amount of shareholders of the Company and particulars about shares holding
Unit: share
Total amount of shareholders at Total amount of the preferred shareholders who have resumed
159,423 0
the end of the report period the voting right at end of report period (if applicable)
Shareholder with above 5% shares held or top ten shareholders
Amount Number of share
Proporti Total shares
of Amount of pledged/frozen
Nature of on of held at the Changes in
Full name of Shareholders restricte un-restricted
shareholder shares end of report report period Share
d shares shares held Amount
held (%) period status
held
Domestic non
Foresea Life Insurance Co., Ltd. –
state-owned 15.19% 466,386,874 466,386,874
HailiNiannian
legal person
Domestic non
Foresea Life Insurance Co., Ltd. –
state-owned 3.86% 118,425,007 118,425,007
Universal Insurance Products
legal person
Pledged 86,630,000
Domestic non
Zhongshan Runtian Investment
state-owned 2.82% 86,633,447 86,633,447 Marked 86,630,000
Co., Ltd.
legal person Frozen 3,447
Domestic non
Foresea Life Insurance Co., Ltd. –
state-owned 2.11% 64,765,161 64,765,161
Own Fund
legal person
China Merchants Securities (HK) State-owned
1.37% 42,050,889 -318,099 42,050,889
Co., Limited legal person
China Galaxy International
Foreign legal
Securities (Hong Kong) Co., 1.34% 41,219,778 41,219,778
person
Limited
Domestic non
National Social Security Fund 418
state-owned 1.19% 36,649,229 36,649,229 36,649,229
Portfolio
legal person
CITIC Securities - China CITIC Domestic non 1.07% 32,888,875 32,888,875 32,888,875
61
CSG Semi-annual Report 2022
Bank - CITIC Securities Excellent state-owned
Growth Two-Year Holding Period legal person
Hybrid Collective Asset
Management Plan
China Life Insurance Co.,
Domestic non
Ltd.-Traditional-General
state-owned 1.03% 31,645,064 1,808,796 31,645,064
Insurance Products-005L-CT001
legal person
Shen
VANGUARD EMERGING
Foreign legal
MARKETS STOCK INDEX 0.65% 19,885,573 -1,445,024 19,885,573
person
FUND
Strategic investors or general legal person N/A
becomes top 10 shareholders due to shares issued
(if applicable)
Explanation on associated relationship among the As of the end of the report period, among shareholders as listed above, Foresea
aforesaid shareholders 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. Zhongshan Runtian Investment
Co., Ltd. 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 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
Administration of the Takeover of Listed Companies Procedures.
Explanation of the above-mentioned shareholders' N/A
entrusted/being entrusted voting rights and waiver
of voting rights
Special instructions on the existence of special N/A
repurchase account among the top 10
shareholders (if applicable)
Particular about top ten shareholders with un-restricted shares held
Amount of Type of shares
un-restricted
Shareholders’ name
shares held at Type Amount
year-end
Foresea Life Insurance Co., Ltd. – HailiNiannian 466,386,874 RMB ordinary shares 466,386,874
Foresea Life Insurance Co., Ltd. – Universal Insurance
118,425,007 RMB ordinary shares 118,425,007
Products
Zhongshan Runtian Investment Co., Ltd. 86,633,447 RMB ordinary shares 86,633,447
62
CSG Semi-annual Report 2022
Foresea Life Insurance Co., Ltd. – Own Fund 64,765,161 RMB ordinary shares 64,765,161
Domestically listed foreign
China Merchants Securities (HK) Co., Limited 42,050,889 42,050,889
shares
China Galaxy International Securities (Hong Kong) Co., Domestically listed foreign
41,219,778 41,219,778
Limited shares
National Social Security Fund 418 Portfolio 36,649,229 RMB ordinary shares 36,649,229
CITIC Securities - China CITIC Bank - CITIC Securities
Excellent Growth Two-Year Holding Period Hybrid Collective 32,888,875 RMB ordinary shares 32,888,875
Asset Management Plan
China Life Insurance Co., Ltd.-Traditional-General Insurance
31,645,064 RMB ordinary shares 31,645,064
Products-005L-CT001 Shen
VANGUARD EMERGING MARKETS STOCK INDEX Domestically listed foreign
19,885,573 19,885,573
FUND shares
As of the end of the report period, 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. Zhongshan Runtian Investment Co., Ltd. is a related legal
Explanation of the related relationship or concerted action
person of Foresea Life Insurance Co., Ltd. and Chengtai Group Co.,
between the top 10 ordinary shareholders of unrestricted shares,
Ltd., another related legal person of Foresea Life Insurance Co., Ltd,
and between the top 10 ordinary shareholders of unrestricted
which held 40,187,904 shares via China Galaxy International
shares and the top 10 ordinary shareholders
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 Administration of the Takeover of Listed
Companies Procedures.
Description of the top 10 ordinary shareholders participating in
margin trading and securities lending business shareholders (if N/A
applicable)
Special note: On July 11, 2022, at the Company's Second Extraordinary General Meeting in 2022, Foresea Life Insurance Co., Ltd.
voted in favor of all proposals, and Zhongshan Runtian Investment Co., Ltd. voted against all proposals , Chengtai Group Co., Ltd.
voted against all the proposals with the shares held by China Galaxy International Securities (Hong Kong) Co., Limited; on August 3,
2022, at the Company's Third Extraordinary General Meeting in 2022, Foresea Life Insurance Co., Ltd. voted in favor of all
proposals, and Zhongshan Runtian Investment Co., Ltd. voted against all proposals.
Whether the top ten shareholders or top ten shareholders with un-restricted shares carried out buy back deals in the report period
□Yes √ No
The top ten shareholders or top ten shareholders with un-restricted shares did not carry out buy back deals in the report period.
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CSG Semi-annual Report 2022
IV. Changes in the shareholding of directors, supervisors and senior executives
√Applicable □ Not applicable
Number
Amount Amount Number of Number of
of
of shares of shares restricted restricted
Shares held Shares restricted
Working at increased decreased held at shares shares
Name Title shares
status period-begin in this in this period-end granted at granted at
(Share) (Share) granted in
period period period-begin period-end
this period
(Share) (Share) (Share) (Share)
(shares)
Vice
President
Wang
and Chief Incumbent 154,600 0 0 154,600 0 0 0
Wenxin
Financial
Officer
Total -- -- 154,600 0 0 154,600 0 0 0
V. Changes of controlling shareholder or actual controller
Changes of controlling shareholders in the report period
□Applicable √ Not applicable
Changes of actual controller in the report period
□Applicable √ Not applicable
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CSG Semi-annual Report 2022
Section VIII. Preferred shares
□Applicable √ Not applicable
There were no preferred shares in the Company during the report period.
65
CSG Semi-annual Report 2022
Section IX. Bonds
√Applicable □ Not applicable
I. Enterprise bonds
□Applicable √ Not applicable
The Company had no enterprise bonds during the report period.
II. Corporate bonds
√Applicable □ Not applicable
1. Basic information about corporate bonds
Unit: RMB
Way of
Bond Maturity Interest repayment Trading
Name Short name Issue date Value date Bond balance
code date rate of principal place
and interest
Use simple
interest to
calculate the
annual
interest,
excluding
CSG’s compound
Public interest.
Issuance Interest is
of paid once a Shenzhen
Corporate 20 CSG 01 149079 2020-3-24 to
2020-3-25 2023-3-25 2,000,000,000 6.00% year, Stock
Bonds to 2020-3-25
principal is Exchange
Qualified repaid once
Investors due, and the
2020 last
(Phase I) installment
of interest is
paid
together
with the
principal.
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CSG Semi-annual Report 2022
The corporate bonds shall be publicly issued to qualified institutional investors who have
Appropriate arrangements for opened qualified A-share securities accounts in the Shenzhen branch of China securities
investors registration and clearing Co., Ltd., in accordance with the provisions of the "Measures for the
Administration of Corporate Bond Issuance and Trading".
Matching transaction, click transaction, inquiry transaction, bidding transaction and negotiation
Applicable trading mechanism
transaction.
Whether there are risks (if any) of
terminating listing transactions No
and countermeasures
Overdue bonds
□Applicable √ Not applicable
2. Triggering and implementation of issuer or investor option clauses and investor protection clauses
□Applicable √ Not applicable
3. Adjustment of credit rating results during the report period
□Applicable √ Not applicable
4. The implementation and changes of guarantees, debt repayment plans and other debt repayment
safeguard measures during the reporting period, and their impact on the rights and interests of bond
investors
√Applicable □ Not applicable
During the report period, the guarantee situation of “20 CSG 01” and other debt repayment safeguard measures of the debt repayment
plan remained unchanged, which were consistent with the relevant commitments in the prospectus. The basic information is as
follows:
I. Guarantee situation
There is no guarantee for this bond.
II. Debt repayment plan
"20 CSG 01" will pay interest once a year during its duration, and the principal will be repaid once upon maturity. The interest of the
last period will be paid together with the repayment of the principal. The payment date of "20 CSG 01" is March 25 of each year
from 2021 to 2023, and the payment date is March 25, 2023 (in case of a statutory holiday or rest day, it will be postponed to the first
trading day thereafter).
Ⅲ. Repayment safeguards
The guarantee measures for debt repayment include confirming the specialized departments and personnel arranging the funds for
repayment, strictly implementing the use of the raised funds, giving full play to the role of bond trustee, setting the rules for
bondholders' meetings, strictly fulfilling the obligation of information disclosure, to fully and effectively protect the interests of
bondholders.
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CSG Semi-annual Report 2022
III. Debt financing instruments of non-financial enterprises
□Applicable √ Not applicable
During the report period, the Company did not have non-financial corporate debt financing instruments.
IV. Convertible corporate bonds
□Applicable √ Not applicable
During the report period, the Company did not have convertible corporate bonds.
V. The loss within the scope of consolidated statements in the reporting period exceeded 10% of the net
assets at the end of the previous year
□Applicable √ Not applicable
VI. Main accounting data and financial indicators of the company in recent two years by the end of the
reporting period
RMB 0,000
Increase and decrease at the end
Item At the end of the report period At the end of the previous year of the report compared with the
end of the previous year
Current ratio 1.23 1.66 -25.90%
Asset-liability ratio 45% 40% 5%
Quick ratio 0.95 1.38 -31.16%
Increase and decrease in the
The same period of the previous
The report period report period over the same
year
period of last year
Net profit after deducting
88,759 132,981 -33.25%
non-recurring gains and losses
EBITDA total debt ratio 17% 32% -15%
Interest coverage ratio 10.69 16.70 -35.99%
Cash interest coverage ratio 12.34 19.79 -37.65%
EBITDA interest coverage ratio 14.64 21.35 -31.43%
Loan repayment rate 100% 100% 0%
Interest coverage ratio 100% 100% 0%
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CSG Semi-annual Report 2022
Section X. Financial Report
I.Auditors’ Report
Whether the Semi-annual Report has been audited or not
□ Yes √ No
The Company's Semi-annual Report has not been audited.
II.Financial Statements
All figures in the Notes to the Financial Statements are in RMB.
1. Consolidated Balance Sheet
Prepared by CSG Holding Co., Ltd.
June 30, 2022
Unit: RMB
Item June 30, 2022 January 1, 2022
Current assets：
Cash at bank and on hand 2,870,042,541 2,765,925,906
Trading financial assets 1,209,000,000 999,600,000
Notes receivable 445,375 19,220,984
Accounts receivable 842,283,667 730,525,687
Receivables financing 582,328,808 297,046,123
Advances to suppliers 235,326,059 76,097,276
Other receivables 201,090,652 183,696,711
Inventories 1,766,912,399 1,093,805,525
Other current assets 68,616,670 140,705,298
Total current assets 7,776,046,171 6,306,623,510
Non-current assets
Investment property 383,084,500 383,084,500
Fixed assets 9,336,413,529 8,566,515,026
Construction in progress 2,809,337,684 2,461,088,650
Right of use assets 9,034,632 9,911,935
Intangible assets 1,209,525,068 1,167,611,402
Development expenditure 91,718,822 72,019,362
Goodwill 130,147,859 130,147,859
Long-term prepaid expenses 3,234,021 3,013,721
Deferred tax assets 196,661,447 255,185,923
Other non-current assets 525,974,043 584,162,622
Total non-current assets 14,695,131,605 13,632,741,000
Total assets 22,471,177,776 19,939,364,510
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CSG Semi-annual Report 2022
1. Consolidated Balance Sheet (continued)
Prepared by CSG Holding Co., Ltd.
June 30, 2022
Unit: RMB
Item 30-Jun-22 1-Jan-22
Current liabilities ：
Short-term borrowings 468,108,522 180,770,000
Notes payable 549,939,628 400,662,713
Accounts payable 1,796,932,531 1,428,851,312
Contract liabilities 413,885,125 335,188,642
Employee benefits payable 287,729,142 426,212,979
Taxes payable 154,652,150 185,009,681
Other payables 221,866,936 289,440,477
Of which: interest payable 36,640,548 95,001,362
Non-current liabilities due within one year 2,371,913,539 503,820,548
Other current liabilities 47,730,142 40,099,309
Total current liabilities 6,312,757,715 3,790,055,661
Non-current liabilities
Long-term borrowings 3,161,136,468 1,469,059,824
Bonds payable 1,996,587,330
lease liability 220,138
Long-term payables 149,062,955 168,258,062
Deferred income 495,313,618 564,129,128
Deferred tax liabilities 91,256,653 84,580,132
Total non-current liabilities 3,896,769,694 4,282,834,614
Total liabilities 10,209,527,409 8,072,890,275
Shareholders’ equity
Share capital 3,070,692,107 3,070,692,107
Capital surplus 596,997,085 596,997,085
Other comprehensive income 165,368,070 159,200,530
Special reserves 1,852,703 7,296,397
Surplus reserve 1,144,887,510 1,144,887,510
Undistributed profits 6,837,623,394 6,450,587,417
Total equity attributable to shareholders of
11,817,420,869 11,429,661,046
parent company
Minority shareholders' equity 444,229,498 436,813,189
Total shareholders' equity 12,261,650,367 11,866,474,235
Total liabilities and shareholders' equity 22,471,177,776 19,939,364,510
Legal Representative:Chen Lin Principal in charge of accounting: Wang Wenxin Principal of the financial department:
Wang Wenxin
70
CSG Semi-annual Report 2022
2. Balance Sheet of the Parent Company
Prepared by CSG Holding Co., Ltd.
June 30, 2022
Unit: RMB
Item June 30, 2022 January 1, 2022
Current assets
Cash at bank and on hand 2,017,872,177 1,961,406,035
Trading financial assets 1,209,000,000 999,600,000
Accounts receivable 1,996,267
Receivables Financing 15,299,671
Advances to suppliers 699,982 639,164
Other receivables 2,624,297,723 2,899,091,405
Of which: dividends receivable 250,000,000 250,000,000
Other current assets 1,226
Total current assets 5,869,167,046 5,860,736,604
Non-current assets
Long-term equity investments 6,899,675,709 6,262,391,694
Fixed assets 9,002,995 11,509,029
Intangible assets 3,382,512 2,102,548
Other non-current assets 104,236,952 104,109,111
Total non-current assets 7,016,298,168 6,380,112,382
Total assets 12,885,465,214 12,240,848,986
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CSG Semi-annual Report 2022
2. Balance Sheet of the Parent Company(continued)
Prepared by CSG Holding Co., Ltd.
June 30, 2022
Unit: RMB
Item June 30, 2022 January 1, 2022
Current liabilities
Short-term borrowings 300,000,000 100,000,000
Bills payable 13,523,441
Accounts payable 464,790 315,684
Contract liabilities 3,339,466
Employee benefits payable 31,843,275 68,534,315
Taxes payable 15,815,743 8,316,132
Other payables 2,075,266,331 2,067,472,879
Of which: interest payable 34,012,995 93,596,328
Non-current liabilities due within one
2,232,931,024 400,000,000
year
Other current liabilities 434,130
Total current liabilities 4,673,618,200 2,644,639,010
Non-current liabilities
Long-term borrowings 1,245,000,000 690,000,000
Bonds payable 1,996,587,330
Deferred income 172,312,500 172,500,000
Total non-current liabilities 1,417,312,500 2,859,087,330
Total liabilities 6,090,930,700 5,503,726,340
Shareholders’ equity
Share capital 3,070,692,107 3,070,692,107
Capital surplus 741,824,399 741,824,399
Surplus reserve 1,159,432,870 1,159,432,870
Undistributed profits 1,822,585,138 1,765,173,270
Total shareholders' equity 6,794,534,514 6,737,122,646
Total liabilities and shareholders' equity 12,885,465,214 12,240,848,986
Legal Representative:Chen Lin Principal in charge of accounting: Wang Wenxin Principal of the financial department:
Wang Wenxin
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CSG Semi-annual Report 2022
3. Consolidated Income Statement
Prepared by CSG Holding Co., Ltd.
Unit: RMB
Item Half year of 2022 Half year of 2021
I. Total revenue 6,519,216,676 6,614,802,538
Of which:Business income 6,519,216,676 6,614,802,538
II. Total business cost 5,480,144,295 4,992,720,799
Of which:Business cost 4,637,645,927 4,126,627,145
Tax and surcharge 61,280,622 73,966,054
Sales expenses 133,906,652 125,326,015
Administrative expenses 318,635,812 354,914,704
R&D expenses 265,877,930 224,886,882
Financial expenses 62,797,352 86,999,999
Of which: interest expense 91,984,604 101,970,419
Interest income 30,756,704 20,024,847
Plus: Other income 99,302,552 36,553,804
Investment income (“- “for loss) 16,413,695 3,672,330
Credit impairment loss (“- “for loss) -1,492,222 -2,524,048
Asset impairment loss (“- “for loss) 1,456 -26,753,082
Income on disposal assets (“- “for loss) 12,745,461 137,638
III. Operational profit (“- “for loss) 1,166,043,323 1,633,168,381
Plus: non-operational income 15,132,978 7,551,798
Less: non-operational expenditure 3,660,070 16,461,985
IV. Total profit (“- “for loss) 1,177,516,231 1,624,258,194
Less: Income tax expenses 168,925,524 255,280,290
V. Net profit (“- “for net loss) 1,008,590,707 1,368,977,904
(I) Classification by business continuity
1. Net profit from continuing operations (“-” for net loss) 1,008,590,707 1,368,977,904
2. Net profit from discontinued operations (“-” for net
loss)
(II) Classification by ownership
1. Equity attributable to shareholders of parent company 1,001,174,398 1,352,517,465
2.Minority shareholder gains and losses 7,416,309 16,460,439
VI. Other comprehensive income net after tax 6,167,540 1,322,491
Other comprehensive income net after tax attributable to
6,167,540 1,322,491
shareholders of parent company
(I) Other comprehensive income that will be reclassified
into profit and loss
(II) Other comprehensive income reclassified to profit or
6,167,540 1,322,491
loss
1.Differences on translation of foreign currency financial
6,167,540 1,322,491
statements
Other comprehensive income, net of tax attributable to
minority shareholders
VII. Total comprehensive income 1,014,758,247 1,370,300,395
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CSG Semi-annual Report 2022
Total comprehensive income attributable to shareholders
1,007,341,938 1,353,839,956
of parent company
Total comprehensive income attributable to minority
7,416,309 16,460,439
shareholders
VIII. Earnings per share:
(I) Basic earnings per share 0.33 0.44
(II) Diluted earnings per share 0.33 0.44
Legal Representative:Chen Lin Principal in charge of accounting: Wang Wenxin Principal of the financial department:
Wang Wenxin
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CSG Semi-annual Report 2022
4. Income Statement of the Parent Company
Prepared by CSG Holding Co., Ltd.
Unit: RMB
Item Half year of 2022 Half year of 2021
I. Revenue 230,198,412 42,342,857
Less: Business cost 15,015,892
Tax and surcharge 1,508,969 674,374
Sales expenses 1,500,585
Administrative expenses 158,605,939 91,345,095
R & D expenses 616,965
Financial expenses 54,002,083 76,018,822
Of which: interest expense 84,259,999 94,186,512
Interest income 28,380,771 17,977,849
Plus: Other income 5,677,313 2,018,355
Investment income(“- “for loss) 665,374,823 718,475,642
Credit impairment loss (“- “for loss) -85,084 -9,473
Income on disposal assets (“- “for loss) 2,477,876 6,893,580
II. Operating profit 673,009,872 601,065,705
Add: Non-operating income 29,967
Less: Non-operating expenses 1,459,583 15,026,836
III. Total profit (“- “for loss) 671,550,289 586,068,836
Less: Income tax expenses
IV. Net profit (“- “for loss) 671,550,289 586,068,836
(I) Net profit for continuing operations(“- “for loss) 671,550,289 586,068,836
(II) Net profit from discontinued operations(“- “for loss)
VI. Total comprehensive income 671,550,289 586,068,836
VII. Earnings per share
Legal Representative:Chen Lin Principal in charge of accounting: Wang Wenxin Principal of the financial department:
Wang Wenxin
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CSG Semi-annual Report 2022
5. Consolidated Cash Flow Statement
Prepared by CSG Holding Co., Ltd.
Unit: RMB
Item Half year of 2022 Half year of 2021
I. Cash flows from operating activities
Cash received from sales of goods or rendering of services 6,933,269,669 7,148,379,280
Refund of taxes and surcharges 209,272,049 33,207,751
Cash received relating to other operating activities 87,236,568 178,825,175
Subtotal of cash inflow from operating activities 7,229,778,286 7,360,412,206
Cash paid for goods and services 4,720,858,626 3,907,366,000
Cash paid to and on behalf of employees 967,549,535 888,450,173
Payments of taxes and surcharges 434,697,790 619,574,024
Cash payments relating to other operating activities 203,869,214 246,776,634
Subtotal of cash outflow from operating activities 6,326,975,165 5,662,166,831
Net cash flows from/(used in) operating activities 902,803,121 1,698,245,375
II. Cash flows from investing activities
Cash received from investment recovery 1,988,760,000 1,182,000,000
Cash received from investment income 15,609,996 3,559,719
Net cash received from disposal of fixed assets, intangible
13,563,172 777,451
assets and other long-term assets
Cash received relating to other investing activities 32,136,351
Subtotal of cash inflows from investing activities 2,017,933,168 1,218,473,521
Cash paid to acquire fixed assets, intangible assets and other
1,632,778,700 738,492,345
long-term assets
Cash paid for investment 2,198,160,000 1,644,000,000
Cash paid relating to other investing activities 19,138,102 6,911,853
Subtotal of cash outflows from investing activities 3,850,076,802 2,389,404,198
Net cash flows (used in)/from investing activities -1,832,143,634 -1,170,930,677
III. Cash flows from financing activities
Cash received from borrowings 2,277,155,766 605,996,933
Cash received relating to other financing activities 206,753
Subtotal of cash inflows from financing activities 2,277,362,519 605,996,933
Cash repayments of borrowings 428,340,521 1,099,975,831
Cash payments for interest expenses and distribution of
791,223,957 508,082,947
dividends or profits
Cash payments relating to other financing activities 24,165,012 390,507
Subtotal of cash outflows from financing activities 1,243,729,490 1,608,449,285
Net cash flows (used in)/from financing activities 1,033,633,029 -1,002,452,352
IV. Effect of foreign exchange rate changes on cash and cash
3,195,681 -1,217,711
equivalents
V. Net increase/(decrease) in cash and cash equivalents 107,488,197 -476,355,365
Add: Cash and cash equivalents at beginning of current
2,756,477,572 2,124,028,196
period
VI. Cash and cash equivalents at end of current period 2,863,965,769 1,647,672,831
Legal Representative:Chen Lin Principal in charge of accounting: Wang Wenxin Principal of the financial department:
Wang Wenxin
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CSG Semi-annual Report 2022
6. Cash Flow Statement of the Parent Company
Prepared by CSG Holding Co., Ltd.
Unit: RMB
Item Half year of 2022 Half year of 2021
I. Cash flows from operating activities
Cash received from sales of goods or rendering of services 191,082,575
Cash received relating to other operating activities 39,349,241 29,031,997
Subtotal of cash inflow from operating activities 230,431,816 29,031,997
Cash paid to and on behalf of employees 179,110,652 77,605,388
Payments of taxes and surcharges 7,463,566 11,908,472
Cash paid relating to other operating activities 16,953,909 31,121,887
Sub-total of cash outflows 203,528,127 120,635,747
Net cash flows from/(used in) operating activities 26,903,689 -91,603,750
II. Cash flows from investing activities
Cash received from investment recovery 1,988,760,000 1,090,000,000
Cash received from investment income 664,571,124 967,450,288
Net cash received from disposal of fixed assets, intangible
2,477,876 101,560
assets and other long-term assets
Sub-total of cash inflows 2,655,809,000 2,057,551,848
Cash paid to acquire fixed assets, intangible assets and other
3,611,833 2,669,478
long-term assets
Cash paid for investing activities 2,835,444,015 1,839,799,000
Sub-total of cash outflows 2,839,055,848 1,842,468,478
Net cash flows (used in)/from investing activities -183,246,848 215,083,370
III. Cash flows from financing activities
Cash received from borrowings 900,000,000 314,000,000
Cash received relating to other financing activities 379,666,653 143,736,716
Sub-total of cash inflows 1,279,666,653 457,736,716
Cash repayments of borrowings 310,000,000 857,300,000
Cash payments for interest expenses and distribution of
756,638,060 497,947,983
dividends or profits
Cash payments relating to other financing activities 1,017,256
Subtotal of cash outflows from financing activities 1,067,655,316 1,355,247,983
Net cash flows (used in)/from financing activities 212,011,337 -897,511,267
IV. Effect of foreign exchange rate changes on cash and cash
1,808,472 372,354
equivalents
V.Net increase/(decrease) in cash and cash equivalents 57,476,650 -773,659,293
Add: Cash and cash equivalents at beginning of current
1,960,395,527 1,071,200,364
period
VI. Cash and cash equivalents at end of current period 2,017,872,177 297,541,071
Legal Representative:Chen Lin Principal in charge of accounting: Wang Wenxin Principal of the financial department:
Wang Wenxin
77
CSG Semi-annual Report 2022
7. Consolidated Statement of Changes in Owners’ Equity
Prepared by CSG Holding Co., Ltd.
Amount of the current period
Unit: RMB
Half year of 2022
Owners’ Equity Attributable to the Parent Company
Item Minority Total
Other shareholders shareholders'
Capital Special Surplus Undistributed
Share capital comprehensi Subtotal ' equity equity
surplus reserves reserve profits
ve income
I. Balance at the end of the previous
3,070,692,107 596,997,085 159,200,530 7,296,397 1,144,887,510 6,450,587,417 11,429,661,046 436,813,189 11,866,474,235
year
II. Balance at the beginning of
3,070,692,107 596,997,085 159,200,530 7,296,397 1,144,887,510 6,450,587,417 11,429,661,046 436,813,189 11,866,474,235
current year
III. Amount of change in current
6,167,540 -5,443,694 387,035,977 387,759,823 7,416,309 395,176,132
term(“- “for decrease)
(I) Total amount of the
6,167,540 1,001,174,398 1,007,341,938 7,416,309 1,014,758,247
comprehensive income
(II) Capital paid in and reduced by
owners
(III) Profit distribution -614,138,421 -614,138,421 -614,138,421
1. Appropriations to owners (or
-614,138,421 -614,138,421 -614,138,421
shareholders)
(IV) Internal carry-forward of
owners’ equity
(V) Specific reserves -5,443,694 -5,443,694 -5,443,694
1. Withdrawal in the period 4,853,948 4,853,948 4,853,948
2. Used in the period 10,297,642 10,297,642 10,297,642
(VI) Others
IV. Balance at the end of the period 3,070,692,107 596,997,085 165,368,070 1,852,703 1,144,887,510 6,837,623,394 11,817,420,869 444,229,498 12,261,650,367
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CSG Semi-annual Report 2022
7. Consolidated Statement of Changes in Owners’ Equity(continued)
Prepared by CSG Holding Co., Ltd.
Amount of the previous period
Unit: RMB
Half year of 2021
Owners’ Equity Attributable to the Parent Company
Item Minority Total
Other shareholders' shareholders'
Capital Special Surplus Undistributed
Share capital comprehensi Subtotal equity equity
surplus reserves reserve profits
ve income
I. Balance at the end of the previous 3,070,692,10 10,269,00
596,997,085 161,816,819 1,036,948,422 5,336,266,412 10,212,989,847 402,894,039 10,615,883,886
year 7 2
II. Balance at the beginning of 3,070,692,10 10,269,00
596,997,085 161,816,819 1,036,948,422 5,336,266,412 10,212,989,847 402,894,039 10,615,883,886
current year 7 2
III. Amount of change in current -1,166,41
1,322,491 1,045,448,254 1,045,604,335 16,460,439 1,062,064,774
term(“- “for decrease) 0
(I) Total amount of the
1,322,491 1,352,517,465 1,353,839,956 16,460,439 1,370,300,395
comprehensive income
(II) Capital paid in and reduced by
owners
(III) Profit distribution -307,069,211 -307,069,211 -307,069,211
1. Appropriations to owners (or
-307,069,211 -307,069,211 -307,069,211
shareholders)
(IV) Internal carry-forward of
owners’ equity
-1,166,41
(V) Specific reserves -1,166,410 -1,166,410
0
1. Withdrawal in the period
2. Used in the period 1,166,410 1,166,410 1,166,410
(VI) Others
IV. Balance at the end of the period 3,070,692,10
596,997,085 163,139,310 9,102,592 1,036,948,422 6,381,714,666 11,258,594,182 419,354,478 11,677,948,660
7
Legal Representative:Chen Lin Principal in charge of accounting: Wang Wenxin Principal of the financial department:Wang Wenxin
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CSG Semi-annual Report 2022
8. Statement of changes in owner's equity of the parent company
Prepared by CSG Holding Co., Ltd.
Amount of the current period
Unit: RMB
Half year of 2022
Item Total shareholders'
Share capital Capital surplus Surplus reserve Undistributed profits
equity
I. Balance at the end of the previous year 3,070,692,107 741,824,399 1,159,432,870 1,765,173,270 6,737,122,646
II. Balance at the beginning of current year 3,070,692,107 741,824,399 1,159,432,870 1,765,173,270 6,737,122,646
III. Amount of change in current term(“- “for
57,411,868 57,411,868
decrease)
(I) Total amount of the comprehensive income 671,550,289 671,550,289
(II) Capital paid in and reduced by owners
(III) Profit distribution -614,138,421 -614,138,421
1. Appropriations to owners (or shareholders) -614,138,421 -614,138,421
(IV) Internal carry-forward of owners’ equity
(V) Special reserves
(VI) Others
IV. Balance at the end of the period 3,070,692,107 741,824,399 1,159,432,870 1,822,585,138 6,794,534,514
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8. Statement of changes in owner's equity of the parent company(continued)
Prepared by CSG Holding Co., Ltd.
Amount of the previous period
Unit: RMB
Half year of 2021
Item Total shareholders'
Share capital Capital surplus Surplus reserve Undistributed profits
equity
I. Balance at the end of the previous year 3,070,692,107 741,824,399 1,051,493,782 1,100,790,694 5,964,800,982
II. Balance at the beginning of current year 3,070,692,107 741,824,399 1,051,493,782 1,100,790,694 5,964,800,982
III. Amount of change in current term(“- “for
278,999,625 278,999,625
decrease)
(I) Total amount of the comprehensive income 586,068,836 586,068,836
(II) Capital paid in and reduced by owners
(III) Profit distribution -307,069,211 -307,069,211
1. Appropriations to owners (or shareholders) -307,069,211 -307,069,211
(IV) Internal carry-forward of owners’ equity
(V) Special reserves
(VI) Others
IV. Balance at the end of the period 3,070,692,107 741,824,399 1,051,493,782 1,379,790,319 6,243,800,607
Legal Representative:Chen Lin Principal in charge of accounting: Wang Wenxin Principal of the financial department:Wang Wenxin
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CSG Semi-annual Report 2022
III. Basic Information of the Company
CSG Holding Co Ltd (the “Company”) was incorporated in September 1984, known as China South Glass Company, as a joint
venture enterprise by Hong Kong China Merchants Shipping Co., LTD ( 香 港 招 商 局 轮 船 股 份 有 限 公 司 ), Shenzhen Building
Materials Industry Corporation (深圳建筑材料工业集团公司), China North Industries Corporation (中国北方工业深圳公司) and
Guangdong International Trust and Investment Corporation (广东国际信托投资公司). The Company was registered in Shenzhen,
Guangdong Province of the People's Republic of China and its headquarters is located in Shenzhen, Guangdong Province of the
People's Republic of China. The Company issued RMB-denominated ordinary shares (“A-share”) and foreign shares (“B-share”)
publicly in October 1991 and January 1992 respectively, and was listed on Shenzhen Stock Exchange on February 1992. As at June
30, 2022, the registered capital was RMB 3,070,692,107, with nominal value of RMB1 per share.
The Company and its subsidiaries (collectively referred to as the “Group”) are mainly engaged in the manufacture and sales of flat
glass, specialized glass, engineering glass, energy saving glass, silicon related materials, polysilicon and solar components and
electronic-grade display device glass and the construction and operation of photovoltaic plant etc.
The financial statements were authorized for issue by the Board of Directors on August 29, 2022.
Details on the major subsidiaries included in the consolidated scope in current year were stated in the Note.
IV. Basis of the preparation of financial statements
1. Basis of preparation
The financial statements are prepared in accordance with the Accounting Standards for Business Enterprises - Basic Standard, and
the specific accounting standards and other relevant regulations issued by the Ministry of Finance on 15 February 2006 and in
subsequent periods (hereafter collectively referred to as “the Accounting Standard for Business Enterprises” or “CAS”), and
Information Disclosure Rule No. 15 for Companies with Public Traded Securities - Financial Reporting General Provision issued by
China Security Regulatory Commission.
2. Going concern
This financial report is prepared on the basis of going concern.
V. Summary of significant accounting policies and accounting estimates
The Group determines its specific accounting policies and accounting estimates to manufacturing and operation feature. It mainly
reflected in expected credit impairment losses of receivables was measured, inventory costing method, Depreciation of fixed assets
and amortization of intangible assets, criteria for determining capitalised development expenditure, and timing for revenue
recognition.
Refer to the notes for details of the key judgements adopted by the Group in applying important accounting policies.
1. Statement of compliance with the Accounting Standards for Business Enterprises
The financial statements of the Company for the first half year of 2022 truly and completely present the financial position as of June
30, 2022and the operating results, cash flows and other information for the first half year of 2022of the Group and the Company in
compliance with the Accounting Standards for Business Enterprises.
2. Accounting period
The Company’s accounting year starts on 1 January and ends on 31 December.
3. Operating cycle
The Company’s operating cycle starts on 1 January and ends on 31 December.
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4. Recording currency
The recording currency is Renminbi (RMB).
5. Business combinations
(a)Business combinations involving entities under common control
The consideration paid and net assets obtained by the absorbing party in a business combination are measured at book value. If the
merged party was acquired by the ultimate controlling party from a third party in the previous year, the assets and liabilities of the
merged party (including the goodwill formed by the ultimate controlling party’s acquisition of the merged party). The difference
between book value of the net assets obtained from the combination and book value of the consideration paid for the combination is
treated as an adjustment to capital surplus (share premium). If the capital surplus (share premium) is not sufficient to absorb the
difference, the remaining balance is adjusted against retained earnings. Costs directly attributable to the combination are included in
profit or loss in the period in which they are incurred. Transaction costs associated with the issue of equity or debt securities for the
business combination are included in the initially recognised amounts of the equity or debt securities.
(b) Business combinations involving enterprises not under common control
The cost of combination and identifiable net assets obtained by the acquirer in a business combination are measured at fair value at
the acquisition date. Where the cost of the combination exceeds the acquirer’s interest in the fair value of the acquiree’s identifiable
net assets, the difference is recognised as goodwill; where the cost of combination is lower than the acquirer’s interest in the fair
value of the acquiree’s identifiable net assets, the difference is recognised in profit or loss for the current period. Costs directly
attributable to the combination are included in profit or loss in the period in which they are incurred. Transaction costs associated
with the issue of equity or debt securities for the business combination are included in the initially recognised amounts of the equity
or debt securities.
6. Preparation method of consolidated financial statements
The consolidated financial statements comprise the financial statements of the Company and all of its subsidiaries.
Subsidiaries are consolidated from the date on which the Group obtains control and are de-consolidated from the date that such
control ceases. For a subsidiary that is acquired in a business combination involving enterprises under common control, it is included
in the consolidated financial statements from the date when it, together with the Company, comes under common control of the
ultimate controlling party. The portion of the net profits realised before the combination date is presented separately in the
consolidated income statement.
In preparing the consolidated financial statements, where the accounting policies and the accounting periods of the Company and
subsidiaries are inconsistent, the financial statements of the subsidiaries are adjusted in accordance with the accounting policies and
the accounting period of the Company. For subsidiaries acquired from business combinations involving enterprises not under
common control, the individual financial statements of the subsidiaries are adjusted based on the fair value of the identifiable net
assets at the acquisition date.
All significant intra-group balances, transactions and unrealised profits are eliminated in the consolidated financial statements. The
portion of subsidiaries’ equity and the portion of a subsidiaries’ net profits and losses and comprehensive incomes for the period not
attributable to Company are recognised as minority interests and presented separately in the consolidated financial statements under
equity, net profits and total comprehensive income respectively. Unrealised profits and losses resulting from the sales of assets by the
Company to its subsidiaries are fully eliminated against net profit attributable to shareholders of the parent company. Unrealised
profits and losses resulting from the sales of assets by a subsidiary to the Company are eliminated and allocated between net profit
attributable to shareholders of the parent company and non-controlling interests in accordance with the allocation proportion of the
parent company in the subsidiary. Unrealised profits and losses resulting from the sales of assets by one subsidiary to another are
eliminated and allocated between net profit attributable to shareholders of the parent company and non-controlling interests in
accordance with the allocation proportion of the parent in the subsidiary.
After the control over the subsidiary has been gained, whole or partial minority equities of the subsidiary owned by minority
shareholders are acquired from the subsidiary’s minority shareholders. In the consolidated financial statements, the subsidiary's assets
and liabilities are reflected with amount based on continuous calculation starting from the acquisition date or consolidation date.
Capital surplus is adjusted according to the difference between newly increased long-term equity investment arising from acquisition
of minority equity and the share of net assets calculated based on current shareholding ratio that the parent company is entitled to.
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CSG Semi-annual Report 2022
The share is subject to continuous calculation starting from the acquisition date or consolidation date. If the capital surplus (capital
premium or share capital premium) is not sufficient to absorb the difference, the remaining balance is adjusted against retained
earnings.
If the accounting treatment of a transaction which considers the Group as an accounting entity is different from that considers the
Company or its subsidiaries as an accounting entity, it is adjusted from the perspective of the Group.
7. Criteria for determining cash and cash equivalents
Cash and cash equivalents refer to cash in hand, deposits that can be used for payment at any time, and investments with short
holding periods, strong liquidity, easy conversion into known amounts of cash, and low risk of value changes.
8.Translating of foreign currency operations and foreign currency report form
(a) Foreign currency transaction
Foreign currency transactions are translated into RMB using the exchange rates prevailing at the dates of the transactions.
On the balance sheet date, monetary items denominated in foreign currencies are translated into RMB using the spot exchange rates
on the balance sheet date. Exchange differences arising from these translations are recognised in profit or loss for the current period,
except for those attributable to foreign currency borrowings that have been taken out specifically for the acquisition or construction
of qualifying assets, which are capitalised as part of the cost of those assets. Non-monetary items denominated in foreign currencies
that are measured at historical costs are translated at the balance sheet date using the spot exchange rates at the date of the
transactions. The effect of exchange rate changes on cash is presented separately in the cash flow statement.
(b)Conversion of foreign currency financial statements
The asset and liability items in the balance sheets for overseas operations are translated at the spot exchange rates on the balance
sheet date. Among the shareholders’ equity items, the items other than “undistributed profits” are translated at the spot exchange rates
of the transaction dates. The income and expense items in the income statements of overseas operations are translated at the spot
exchange rates of the transaction dates. The differences arising from the above translation are presented separately in the
shareholders’ equity. The cash flows of overseas operations are translated at the spot exchange rates on the dates of the cash flows.
The effect of exchange rate changes on cash is presented separately in the cash flow statement.
9.Financial instrument
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of
another entity. A financial asset or a financial liability is recognised when the Group becomes a party to the contractual provisions of
the instrument.
(a) Financial assets
(i) Classification and measurement
Based on the business model for managing the financial assets and the contractual cash flow characteristics of the financial assets
financial assets are classified as: (1) financial assets at amortised cost; (2) financial assets at fair value through other comprehensive
income; (3) financial assets at fair value through profit or loss.
The financial assets are measured at fair value at initial recognition. Related transaction costs that are attributable to the acquisition of
the financial assets are included in the initially recognised amounts, except for the financial assets at fair value through profit or loss,
the related transaction costs of which are recognised directly in profit or loss for the current period. Accounts receivable or notes
receivable arising from sales of products or rendering of services (excluding or without regard to significant financing components)
are initially recognised at the consideration that is entitled to be charged by the Group as expected.
Debt instruments
The debt instruments held by the Group refer to the instruments that meet the definition of financial liabilities from the perspective of
the issuer, and are measured in the following ways.
Measured at amortised cost
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CSG Semi-annual Report 2022
The objective of the Group's business model is to hold the financial assets to collect the contractual cash flows, and the contractual
cash flow characteristics are consistent with a basic lending arrangement, which gives rise on specified dates to the contractual cash
flows that are solely payments of principal and interest on the principal amount outstanding. The interest income of such financial
assets is recognised using the effective interest method. Such financial assets mainly comprise cash at bank and on hand placements
with and loans to banks and other financial institutions measured at amortised cost, accounts receivable, factoring receivables, loans
and advances, other receivables and long-term receivables. Long-term receivables that are due within one year (inclusive) as from the
balance sheet date are included in the current portion of non-current assets.
Financial assets at fair value through other comprehensive income:
The objective of the Group's business model is to hold the financial assets to collect the contractual cash flows and selling as target
and the contractual cash flow characteristics are consistent with a basic lending arrangement. Such financial assets are measured at
fair value and their changes are included in other comprehensive income, but impairment losses or gains, exchange gains and losses,
and interest income calculated by the effective interest rate method are all included in the current profit and loss. Such financial
assets mainly comprise - receivable financing and other financial debt investment. Other financial debt investment that are due within
one year (inclusive) as from the balance sheet date are included in the current portion as other current assets.
Measured at fair value through profit or loss:
Debt instruments held by the Group that are not divided into those at amortised cost, or those measured at fair value through other
comprehensive income, are measured at fair value through profit or loss and included in financial assets held for trading. At initial
recognition, the Group designates a portion of financial assets as at fair value through profit or loss to eliminate or significantly
reduce an accounting mismatch. Financial assets that are due within one year (inclusive) as from the balance sheet date and are
expected to be held over one year are included in other non-current financial assets.
Equity instruments
Investments in equity instruments, over which the Group has no control, joint control or significant influence, are measured at fair
value through profit or loss under financial assets held for trading; investments in equity instruments expected to be held over one
year as from the balance sheet date are included in other non-current financial assets.
In addition, a portion of certain investments in equity instruments not held for trading are designated as financial assets at fair value
through other comprehensive - income under other investments in equity instruments. The relevant dividend income of such financial
assets is recognised in profit or loss for the current period.
(ii) Impairment
The Group confirms the loss provision based on expected credit losses for financial assets measured at amortised cost, debt
instrument investments at fair value through other comprehensive income, and financial guarantee contracts. based on expected credit
losses (ECL) and recognizes allowances for losses.
Giving consideration to reasonable and supportable information on past events, current conditions and forecasts of future economic
conditions, as well as the default risk weight , the expected credit loss was confirmed .
On each balance sheet date, the expected credit losses of financial instruments at different stages are measured respectively.
12-month ECL provision is recognised for financial instruments in Stage 1 that have not had a significant increase in credit risk since
initial recognition; lifetime ECL provision is recognised for financial instruments in Stage 2 that have had a significant increase in
credit risk yet without credit impairment since initial recognition; and lifetime ECL provision is recognised for financial instruments
in Stage 3 that have had credit impairment since initial recognition.
For the financial instruments with lower credit risk on the balance sheet date, the Group assumes there is no significant increase in
credit risk since initial recognition and recognises the 12-month ECL provision.
For the financial instruments in Stage 1, Stage 2 and with lower credit risk, the Group calculates the interest income by applying the
effective interest rate to the gross carrying amount (before deduction of the impairment provision). For the financial instrument in
-Stage 3, the interest income is calculated by applying the effective interest rate to the amortised cost (after deduction of the
impairment provision from the gross carrying amount).
For notes and accounts receivables and factoring receivables arising from daily business activities such as selling commodities and
providing labor services, the Group recognises the lifetime expected credit loss provision regardless of whether there exists a
significant financing component.
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CSG Semi-annual Report 2022
In case the expected credit losses of an individually assessed financial asset cannot be evaluated with reasonable cost, the Group
divides the receivables into certain groupings based on credit risk characteristics, and calculates the expected credit losses for the
groupings. Basis for determined groupings and method for provision are as follows:
Notes receivables Portfolio 1 Bank acceptance notes Expected credit loss method
Notes receivables Portfolio 2 Trade acceptance notes Expected credit loss method
Accounts receivables Portfolio 1 Receivables non-related third party Expected credit loss method
Accounts receivables Portfolio 2 Receivables related party Expected credit loss method
Other receivables Portfolio 1 Receivables non-related third party Expected credit loss method
Other receivables Portfolio 2 Receivables related party Expected credit loss method
For notes and accounts receivables and receivable financing arising from daily business activities such as selling commodities and
providing labor services, the Group refers to historical credit loss experience, combined with current conditions and predictions of
future economic conditions. In addition to notes receivable, factoring receivables and other receivables classified as a combination,
the Group refers to historical credit loss experience, combines current conditions and predictions of future economic conditions, and
passes default risk exposure and future 12 The expected credit loss rate within a month or the entire duration is calculated as the
expected credit loss.
The Group recognises the loss provision made or reversed into profit or loss for the current period. For debt instruments that are held
at fair value and whose changes are included in other comprehensive income, the Group adjusts other comprehensive income while
accounting for impairment losses or gains in the current profit or loss.
(iii) Derecognition
A financial asset is derecognised when any of the below criteria is met: (1) the contractual rights to receive the cash flows from the
financial asset expire; (2) the financial asset has been transferred and the Group transfers substantially all the risks and rewards of
ownership of the financial asset to the transferee; or (3) the financial asset has been transferred and the Group has not retained control
of the financial asset, although the Group neither transfers nor retains substantially all the risks and rewards of ownership of the
financial asset.
(b) Financial liabilities
Financial liabilities are classified as financial liabilities at amortised cost and financial liabilities at fair value through profit or loss at
initial recognition.
The Group's financial liabilities are mainly comprise financial liabilities at amortised cost, including bills payable, accounts payable,
and other payables. This type of financial liability is initially measured at its fair value after deducting transaction costs, and is
subsequently measured using the actual interest rate method. If the maturity is less than one year (including one year), it is listed as
current liabilities; Those with a maturity of less than one year (including one year) are listed as current liabilities; those with a
maturity of more than one year but due within one year (including one year) from the balance sheet date are listed as non-current
liabilities due within one year. The rest are listed as non-current liabilities.
A financial liability is derecognised or partly derecognised when the underlying present obligation is discharged or partly discharged.
The difference between the carrying amount of the derecognised part of the financial liability and the consideration paid is
recognised in profit or loss for the current period.
(c) Determination of fair value of financial instruments
The fair value of a financial instrument that is traded in an active market is determined at the quoted price in the active market. The
fair value of a financial instrument that is not traded in an active market is determined by using a valuation technique. In valuation,
the Group adopts valuation techniques applicable in the current situation and supported by adequate available data and other
information, selects inputs with the same characteristics as those of assets or liabilities considered in relevant transactions of assets or
liabilities by market participants, and gives priority to the use of relevant observable inputs. When relevant observable inputs are not
available or feasible, unobservable inputs are adopted.
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CSG Semi-annual Report 2022
10.Inventories
(a)Classification
Inventories refer to manufacturing sector, including raw materials, work in progress, finished goods and turnover materials, and are
measured at the lower of cost and net realisable value.
(b)Issued Inventory costing method
Cost is determined using the weighted average method. The cost of finished goods and work in progress comprise raw materials,
direct labour and systematically allocated production overhead based on the normal production capacity.
(c) Amortisation methods of low value consumables and packaging materials
Turnover materials include low value consumables and packaging materials, which are expensed when issued.
(d) The determination of net realisable value and the method of provision for decline in the value of inventories
Provision for decline in the value of inventories is determined at the excess amount of book values of the inventories over their net
realisable value. Net realisable value is determined based on the estimated selling price in the ordinary course of business, less the
estimated costs to completion and estimated costs necessary to make the sale and related taxes.
(e) The Group adopts the perpetual inventory system.
11. Assets classified as held for sale
A non-current asset or a disposal group is classified as held for sale when all of the following conditions are satisfied: (1) the
non-current asset or the disposal group is available for immediate sale in its present condition subject to terms that are traditionally
and customary for sales; (2) the Group has made a resolution and obtained appropriate approval for disposal of the non-current asset
or the disposal group, and the transfer is to be completed within one year.
Non-current assets (except for financial assets, investment properties at fair value and deferred tax assets) that meet the recognition
criteria for held for sale are recognized at the amount equal to the lower of the fair value less costs to sell and book value. The
difference between fair value less costs to sell and carrying amount, should be presented as impairment loss.
Such non-current assets and assets included in disposal groups as classified as held for sale are accounted for as current assets; while
liabilities included in disposal groups classified as held for sale are accounted for as current liabilities, and are presented separately in
the balance sheet.
A discontinued operation is a component of the Group that either has been disposed of or is classified as held for sale, and is
separately identifiable operationally and for financial reporting purposes, and satisfies one of the following conditions: (1) represents
a separate major line of business or geographical area of operations; (2) is part of a single coordinated plan to dispose of a separate
major line of business or geographical area of operations; and (3) is a subsidiary acquired exclusively with a view to resale.
The discontinued operation profits on income statement presentation have included the profits and loss of operation and disposal.
12.Long-term equity investments
Long-term equity investments comprise the Company’s long-term equity investments in its subsidiaries, and the Group’s long-term
equity investments in its associates.
Subsidiaries are the investees over which the Company is able to exercise control. Associates are the investees that the Group has
significant influence on their financial and operating policies.
Investments in subsidiaries are measured using the cost method in the Company’s financial statements, and adjusted by using the
equity method when preparing the consolidated financial statements. Investments in associates are accounted for using the equity
method.
(a)Initial recognition of investment cost
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CSG Semi-annual Report 2022
For long-term equity investments formed in business combination: when obtained from business combinations involving entities
under common control, the long-term equity investment is stated at carrying amount of equity for the combined parties at the time of
merger; when the long-term equity investment obtained from business combinations involving entities not under common control,
the investment is measured at combination cost.
For long-term equity investments not formed in business combination: the one paid by cash is initially measured at actual purchase
price; the long-term investment obtained by issuing equity securities is stated at fair value of equity securities as initial investment
cost..
(b)Subsequent measurement and recognition of related profit or loss
For long-term equity investments accounted for using the cost method, they are measured at the initial investment costs, and cash
dividends or profit distribution declared by the investees are recognised as investment income in profit or loss.
For long-term equity investments accounted for using the equity method, where the initial investment cost of a long-term equity
investment exceeds the Group’s share of the fair value of the investee’s
identifiable net assets at the acquisition date, the long-term equity investment is measured at the initial investment cost; where the
initial investment cost is less than the Group’s share of the fair value of the investee’s identifiable net assets at the acquisition date,
the difference is included in profit or loss and the cost of the long-term equity investment is adjusted upwards accordingly.
Under the equity method, the Group recognises the investment income according to its share of net profit or loss of the investee. The
Group discontinues recognising its share of the net losses of an investee after book values of the long-term equity investment
together with any long-term interests that in substance form part of the investor’s net investment in the investee are reduced to zero.
However, if the Group has obligations for additional losses and the criteria with respect to recognition of provisions
under the accounting standards on contingencies are satisfied, the Group continues recognising the investment losses and the
provisions. For changes in owners’ equity of the investee other than those arising from its net profit or loss, its proportionate share is
directly recorded into capital surplus, provided that the proportion of the shareholding of the Group in the investee remains
unchanged. Book value of the investment is reduced by the Group’s share of the profit distribution or cash dividends declared by an
investee. The unrealised profits or losses arising from the intra-group transactions amongst the Group and its investees are eliminated
in proportion to the Group’s equity interest in the investees, and then based on which the investment gains or losses are recognised.
Any losses resulting from transactions between the Group and its investees attributable to asset impairment losses are not eliminated.
(c)Basis for determining existence of control, jointly control or significant influence over investees
The term "control" refers to the power in the investees, to obtain variable returns by participating in the related business activities of
the investees, and the ability to affect the returns by exercising its power over the investees.
The term "significant influence" refers to the power to participate in the formulation of financial and operating policies of an
enterprise, but not the power to control, or jointly control, the formulation of such policies with other parties.
(d)Impairment of long-term equity investments
Book value of long-term equity investments in subsidiaries and associates is reduced to the recoverable amount when the recoverable
amount is less than book value.
13.Investment property
Investment property includes leased land use rights, land use rights held and provided for to transfer after appreciation and leased
building and construction.
Investment properties are initially measured at acquisition cost. The cost of outsourcing Investment property includes the purchase
price, relevant taxes and other expenditures that can be directly attributable to the asset; the cost of self-built Investment property is
determined by the construction of the asset. The composition of the necessary expenditures incurred before the usable state.
Investment property adopts the fair value model for subsequent measurement without depreciation or amortization. On the balance
sheet date, the book value of the investment properties are initially measured at acquisition cost is adjusted based on the fair value of
the investment properties are initially measured at acquisition cost. The difference between the fair value and the original book value
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will be calculated into the current profit and loss.
When the use of an Investment property is changed to self-use, the investment property is converted into fixed assets or intangible
assets from the date of change, and the book value and fair value of the fixed assets and intangible assets are determined based on the
fair value of the investment property on the conversion date. The difference with the original book value of the investment property is
included in the current profit and loss. When the purpose of self-use real estate is changed to earning rent or capital appreciation,
from the date of change, the fixed assets or intangible assets are converted into investment properties are initially measured at
acquisition cost, and the fair value on the day of conversion is used as the book value of the investment properties are initially
measured at acquisition cost, and the fair value on the day of conversion If the value is less than the original book value of fixed
assets and intangible assets, the difference is included in the current profit and loss. If the fair value on the day of conversion is
greater than the original book value of fixed assets and intangible assets, the difference is included in other comprehensive income.
When an investment property is disposed of or permanently withdrawn from use and it is expected that no economic benefits can be
obtained from its disposal, the confirmation of the investment real estate shall be terminated. The disposal income from the sale,
transfer, scrapping or destruction of investment real estate shall deduct its book value and relevant taxes and shall be included in the
current profits and losses. If there is an amount included in other comprehensive income on the original conversion date, it will also
be carried forward and included in the current profit and loss.
14. Fixed assets
(1) Recognition condition
Fixed assets comprise buildings, machinery and equipment, motor vehicles and others.
Fixed assets are recognized when it is probable that the related economic benefits will probably flow to the Group and the costs can
be reliably measured. Fixed assets purchased or constructed by the Group are initially measured at cost at the acquisition date.
Subsequent expenditures incurred for a fixed asset are included in the cost of the fixed asset when it is probable that the associated
economic benefits will flow to the Group and the related cost can be reliably measured. Book value of the replaced part is
derecognized. All the other subsequent expenditures are recognized in profit or loss in the period in which they are incurred.
(2) Depreciation methods
Fixed assets are depreciated using the straight-line method to allocate the cost of the assets to their estimated residual values over
their estimated useful lives. For the fixed assets that have been provided for impairment loss, the related depreciation charge is
prospectively determined based upon the adjusted carrying amounts over their remaining useful lives.
The estimated useful lives, the estimated net residual values expressed as a percentage of cost and the annual depreciation rates of
fixed assets are as follows:
Item Depreciation method Estimated useful lives Estimated net Annual depreciation rate
residual value
Building Straight-line method 20 to 35 years 5% 2.71% to 4.75%
Machinery and equipment Straight-line method 8 to 20 years 5% 4.75% to 11.88%
Motor vehicles and others Straight-line method 5 to 8 years 0% 12.50% to 20.00%
The estimated useful life, the estimated net residual value of a fixed asset and the depreciation method applied to the asset are
reviewed, and adjusted as appropriate at each year-end.
(3) Book value of a fixed asset is reduced to the recoverable amount when the recoverable amount is below book value.
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(4) Disposal
A fixed asset is derecognized on disposal or when no future economic benefits are expected from its use or disposal. The amount of
proceeds from disposals on sale, transfer, retirement or damage of a fixed asset net ofits carrying amount and related taxes and
expenses is recognized in profit or loss for the current period.
15. Construction in progress
Construction in progress is recorded at actual cost. Actual cost comprises construction cost, installation cost, borrowing costs eligible
for capitalised condition and necessary expenditures incurred for its intended use. Actual cost also includes net of trial production
cost and trial production income before construction in progress is put into production.
Construction in progress is transferred to fixed assets when the assets are ready for their intended use, and depreciation begins from
the following month.
Book value of construction in progress is reduced to the recoverable amount when the recoverable amount is below book value.
16. Borrowing costs
The borrowing costs incurred by the group that are directly attributable to the acquisition and construction of an asset that needs a
substantially long period of time for its intended use commence to be capitalised and recorded as part of the cost of the asset when
expenditures for the asset and borrowing costs have been incurred, and the activities relating to the acquisition and construction that
are necessary to prepare the asset for its intended use have commenced. The capitalisation of borrowing costs ceases when the asset
under acquisition or construction becomes ready for its intended use and the borrowing costs incurred thereafter are recognized in
profit or loss for the current period. Capitalisation of borrowing costs is suspended during periods in which the acquisition or
construction of a fixed asset is interrupted abnormally and the interruption lasts for more than 3 months, until the acquisition or
construction is resumed.
For the specific borrowings obtained for the acquisition or construction of an asset qualifying for capitalisation, the amount of
borrowing costs eligible for capitalisation is determined by the amount of interest expenses actually incurred in the current period of
special borrowing deducting any interest income earned from depositing the unused specific borrowings in the banks or any
investment income arising on the temporary investment of those borrowings during the capitalisation period.
For the general borrowings obtained for the acquisition or construction of an asset qualifying for capitalisation, the amount of
borrowing costs eligible for capitalisation is determined by applying the weighted average effective interest rate of general
borrowings, to the weighted average of the excess amount of cumulative expenditures on the asset over the amount of specific
borrowings. The effective interest rate is the rate at which the estimated future cash flows during the period of expected duration of
the borrowings or applicable shorter period are discounted to the initial amount of the borrowings.
17 .Intangible assets
(1) Valuation method, useful life and impairment test
Intangible assets, mainly including land use rights, patents and proprietary technologies, exploitation rights and others, are measured
at cost.
(a) Land use rights
Land use rights are amortised on the straight-line basis over their approved use period of 30 to 70 years. If the acquisition costs of the
land use rights and the buildings located thereon cannot be reasonably allocated between the land use rights and the buildings, all of
the acquisition costs are recognized as fixed assets.
(b) Patents and proprietary technologies
Patents and proprietary technologies are amortised on a straight-line basis over the estimated use life.
(c) Exploitation rights
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Exploitation rights are amortised on a straight-line basis over permitted exploitation periods on the exploitation certificate.
(d) Periodical review of useful life and amortization method
For an intangible asset with a finite useful life, review of its useful life and amortization method is performed at each year-end, with
adjustment made as appropriate.
(e) Impairment of intangible assets
Book value of intangible assets is reduced to the recoverable amount when the recoverable amount is below book value.
(2) Accounting policy for internal research and development expenditure
The expenditure on an internal research and development project is classified into expenditure on the research phase and expenditure
on the development phase based on its nature and whether there is material uncertainty that the research and development activities
can form an intangible asset at end of the project.
Expenditure on the research phase related to planned survey, evaluation and selection for research on manufacturing technique is
recognized in profit or loss in the period in which it is incurred. Prior to mass production, expenditure on the development phase
related to the design and testing phase in regards to the final application of manufacturing technique is capitalised only if all of the
following conditions are satisfied:
the development of manufacturing technique has been fully demonstrated by technical team;
management has approved the budget for the development of manufacturing technique;
there are research and analysis of pre-market research explaining that products manufactured with such technique are capable
of marketing;
There is sufficient technical and capital to support the development of manufacturing technique and subsequent mass
production; and the expenditure on manufacturing technique development can be reliably gathered.
Other development expenditures that do not meet the conditions above are recognized in profit or loss in the period in which they are
incurred. Development costs previously recognized as expenses are not recognized as an asset in a subsequent period. Capitalised
expenditure on the development phase is presented as development costs in the balance sheet and transferred to intangible assets at
the date that the asset is ready for its intended use.
18. Impairment of long-term assets
Investment properties,fixed assets, construction in progress, intangible assets with finite useful lives and long-term equity
investments in joint ventures and associates are tested for impairment if there is any indication that the assets may be impaired at the
balance sheet date; intangible assets not ready for their intended use are tested at least annually for impairment, irrespective of
whether there is any indication that they may be impaired. If the result of the impairment test indicates that the recoverable amount of
an asset is less than its carrying amount, a provision for impairment and an impairment loss are recognized for the amount by which
the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to
sell and the present value of the future cash flows expected to be derived from the asset. Provision for asset impairment is determined
and recognized on the individual asset basis. If it is not possible to estimate the recoverable amount of an individual asset, the
recoverable amount of a group of assets to which the asset belongs is determined. A group of assets is the smallest group of assets
that is able to generate independent cash inflows.
Goodwill that is separately presented in the financial statements is tested at least annually for impairment, irrespective of whether
there is any indication that it may be impaired. In conducting the test, book value of goodwill is allocated to the related asset groups
or groups of asset groups which are expected to benefit from the synergies of the business combination. If the result of the test
indicates that the recoverable amount of an asset group or group of asset groups, including the allocated goodwill, is lower than its
carrying amount, the corresponding impairment loss is recognized. The impairment loss is first deducted from book value of
goodwill that is allocated to the asset group or group of asset groups, and then deducted from book values of other assets within the
asset groups or groups of asset groups in proportion to book values of assets other than goodwill.
Once the above asset impairment loss is recognized, it will not be reversed for the value recovered in the subsequent periods.
19.Long-term prepaid expenses
Long-term prepaid expenses include the expenditures that have been incurred but should be recognised as expenses over more than
one year in the current and subsequent periods. Long-term prepaid expenses are amortised on the straight-line basis over the expected
beneficial period and are presented at actual expenditure net of accumulated amortisation.
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20. Employee benefits
Employee benefits include short-term employee benefits, post-employment benefits, termination benefits and other long-term
employee benefits provided in various forms of consideration in exchange for service rendered by employees or compensations for
the termination of employment relationship.
(1) Accounting treatment method of short-term employee benefits
Short-term employee benefits include wages or salaries, bonuses, allowances and subsidies, staff welfare, medical care, work injury
insurance, maternity insurance, housing funds, labour union funds, employee education funds and paid short-term leave, etc. The
employee benefit liabilities are recognized in the accounting period in which the service is rendered by the employees, with a
corresponding charge to the profit or loss for the current period or the cost of relevant assets. Employee benefits which are
non-monetary benefits shall be measured at fair value.
(2)Accounting treatment method of post-employment benefits
The Group classifies post-employment benefit plans as either defined contribution plans or defined benefit plans. Defined
contribution plans are post-employment benefit plans under which the Group pays fixed contributions into a separate fund and will
have no obligation to pay further contributions; and defined benefit plans are post-employment benefit plans other than defined
contribution plans. During the reporting period, the Group's post-employment benefits mainly include basic pensions and
unemployment insurance, both of which belong to the defined contribution plans.
(3)Basic pensions
The Group’s employees participate in the basic pension plan set up and administered by local authorities of Ministry of Human
Resource and Social Security. Monthly payments of premiums on the basic pensions are calculated according to prescribed bases and
percentage by the relevant local authorities. When employees retire, local labour and social security institutions have a duty to pay
the basic pension insurance to them. The amounts based on the above calculations are recognized as liabilities in the accounting
period in which the service has been rendered by the employees, with a corresponding charge to the profit or loss for the current
period or the cost of relevant assets.
(4)Accounting treatment of dismissal benefits
The Group provides compensation for terminating the employment relationship with employees before the end of the employment
contracts or as an offer to encourage employees to accept voluntary redundancy before the end of the employment contracts. The
Group recognizes a liability arising from compensation for termination of the employment relationship with employees, with a
corresponding charge to profit or loss at the earlier of the following dates: 1) when the Group cannot unilaterally withdraw the offer
of termination benefits because of an employment termination plan or a curtailment proposal; 2) when the Group recognizes costs or
expenses related to the restructuring that involves the payment of termination benefits.
The dismissal benefits expected to be paid within one year since the balance sheet date are classified as current liabilities.
21. Estimated liabilities
Current obligations arising from enterprise restructuring, product quality assurance, onerous contracts, etc. are recognized as
estimated liabilities when the performance of such obligations is likely to lead to the outflow of economic benefits and the amount
can be measured reliably.
A provision is initially measured at the best estimate of the expenditure required to settle the related present obligation. Factors
surrounding a contingency, such as the risks, uncertainties and the time value of money, are taken into account as a whole in reaching
the best estimate of a provision. Where the effect of the time value of money is material, the best estimate is determined by
discounting the related future cash outflows. The increase in the discounted amount of the provision arising from passage of time is
recognized as interest expense.
Book value of provision is reviewed at each balance sheet date and adjusted to reflect the current best estimate.
The provisions expected to be paid within one year since the balance sheet date are classified as current liabilities.
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22 .Share-based payments
Share-based payments are divided into equity-settled and cash-settled payments. The term "equity-settled share-based payment"
refers to a transaction in which an enterprise grants shares or other equity instruments as a consideration in return for services.
Equity-settled share-based payment The Group‘s stock optionstock option plan is the equity-settled share-based payment in exchange
of employees' services and is measured at the fair value of the equity instruments at grant date. The equity instruments are exercisable
after services in vesting period are completed or specified performance conditions are met. In the vesting period, the services
obtained in current period are included in relevant cost and expenses at the fair value of the equity instruments at grant date based on
the best estimate of the number of exercisable equity instruments, and capital surplus is increased accordingly. The Group makes the
best estimate of the number of vesting equity instruments based on the latest obtained changes in the number of vested employees,
whether the required performance conditions are met, and other follow-up information. If the subsequent information indicates the
number of exercisable equity instruments differs from the previous estimate, an adjustment is made and, on the exercise date, the
estimate is revised to equal the number of actual vested equity instruments.
In the period at which performance conditions and term of service are met, the relevant cost and expenses of equity-settled payment
should be recognized, and capital surplus is increased accordingly. Before the exercise date, the accruing amounts of equity-settled
payments on balance sheet date reflect the part of expired waiting period and optimal estimation for the number of the Company final
vested equity instruments.
If the non-market conditions and term of service are not met so that share-based payment fail to exercise, the costs and expenses on
this portion should not be recognized. If the share-based payment agreement sets out the market conditions and term of non-vesting,
as long as performance conditions and term of service are met, it is should be regard as exercisable right, no matter the market
conditions and non-vesting conditions are meet or not.
If the terms of equity-settled payment are modified, at least the service is confirmed in accordance with the unmodified terms. In
addition, the increase of the fair value of the authorized equity instruments, or the beneficial changes to the employees on the
modification date, the increase of service are confirmed. If the equity-settled payment is cancelled, the cancellation date shall be
deemed as an expedited exercise, and the unconfirmed amount shall be confirmed immediately. If the employee or other party is able
to choose to meet the non-vesting conditions but not satisfied in the waiting period, equity-settled payment should be cancelled. But
if a new equity instrument is granted, and the new equity instrument is confirm to replace the old equity instrument which is canceled
in the authorization date of the new equity instrument, the new equity instrument should be disposed by using the same conditions
and terms of the old equity instrument for modifications.
23. Revenue
The Group recognizes revenue at the consideration that the Group is entitled to charge as expected when the Group has fulfilled the
performance obligations in the contract, that is, the customer obtains control over relevant goods or services.
(a) Sales of goods
The Group mainly sells flat and engineering glass, products related to solar energy, and electronic glass and displays. For domestic
sales, the Group delivers the products to a certain place specified in the contract. When the buyer takes over the goods, the Group
recognizes revenue. For export sales, the Group recognizes the revenue when it finished clearing goods for export and delivering the
goods on board the vessel, or when the goods are delivered to a certain place specified in the contract. The credit period granted by
the Group to customers is determined based on the customer's credit risk characteristics, consistent with industry practices, and there
is no major financing component. The Group’s obligation to transfer goods to customers for consideration received or receivable
from customers is listed as contract liabilities.
Revenue is presented as the net amount after deducting sales discounts and sales returns.
(b) Rendering of services
The Group provides external consulting, loading, unloading, transportation and processing labor services, and recognizes revenue
within a period of time based on the progress of the completed labor. The progress of the completed labor is determined according to
the proportion of the cost incurred to the estimated total cost. On the balance sheet date, the Group re-estimates the progress of
completed labor services so that it can reflect changes in contract performance.
When the Group recognizes revenue based on the performance progress of the completed labor services, the portion for which the
Group has obtained the unconditional right to receive payments is recognized as accounts receivable, and the remaining portion is
recognized as contract assets, and the Company measures the loss reserve of accounts receivable and contract assets. According to
the expected credit loss; If the contract price received or receivable by the Group exceeds the completed progress, the excess is
recognized as contract liabilities. The Group presents the contract assets and contract liabilities under the same contract as a net
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amount.
24 .Government grants
Government grants are transfers of monetary or non-monetary assets from the government to the Group at nil consideration,
including tax refund and financial subsidies, etc.
A government grant is recognized when there is a reasonable assurance that the grants will be received and the Group will comply
with all attached conditions. Monetary government grants are measured at the amounts received or receivable. Non-monetary
government grants are measured at fair value, if the fair value cannot be reliably obtained, it is measured at nominal amount.
The government grants related to assets refer to government grant obtained by enterprises and used for purchase and construction of
long-term assets or formation of long-term asset in other ways. The government grants related to income refer to grants other than
those related to assets.
For government grants related to income, where the grant is a compensation for related expenses or losses to be incurred by the
Group in the subsequent periods, the grant is recognized as deferred income, and included in profit or loss over the periods in which
the related costs are recognized; where the grant is a compensation for related expenses or losses already incurred by the Group, the
grant is recognized immediately in profit or loss for the current period.The company use the same method of presentation for similar
government grants.
The ordinary activity government grants should be counted into operating profits; the government grants which not belong to
ordinary activities should be counted into non-operating income.
25. Deferred tax assets / deferred tax liabilities
Deferred tax assets and deferred tax liabilities are calculated and recognized based on the differences arising between the tax bases of
assets and liabilities and their carrying amounts (temporary differences). Deferred tax asset is recognized for the deductible losses
that can be carried forward to subsequent years for deduction of the taxable profit in accordance with the tax laws. No deferred tax
liability is recognized for a temporary difference arising from the initial recognition of goodwill. No deferred tax asset or deferred tax
liability is recognized for the temporary differences resulting from the initial recognition of assets or liabilities due to a transaction
other than a business combination, which affects neither accounting profit nor taxable profit (or deductible loss). At the balance sheet
date, deferred tax assets and deferred tax liabilities are measured at the tax rates that are expected to apply to the period when the
asset is realized or the liability is settled.
Deferred tax assets are only recognized for deductible temporary differences, deductible losses and tax credits to the extent that it is
probable that taxable profit will be available in the future against which the deductible temporary differences, deductible losses and
tax credits can be utilized.
Deferred tax liabilities are recognized for temporary differences arising from investments in subsidiaries and associates, except where
the Group is able to control the timing of reversal of the temporary difference, and it is probable that the temporary difference will
not reverse in the foreseeable future. When it is probable that the temporary differences arising from investments in subsidiaries and
associates will be reversed in the foreseeable future and that the taxable profit will be available in the future against which the
temporary differences can be utilized, the corresponding deferred tax assets are recognized.
Deferred income tax assets and deferred income tax liabilities that meet the following conditions at the same time are listed as the net
amount after offset:
The deferred taxes are related to the same tax payer within the Group and the same taxation authority;
That tax payer within the Group has a legally enforceable right to offset current tax assets against current tax liabilities.
26 .Leases
A leasing is a contract in which the lessor cedes the right to use an asset to the lessee for a certain period of time in return for
consideration.
(a) The Group acts as the lessee
The Company recognizes the right-of-use assets on the commencement date of the lease term and recognizes the lease liabilities at
the present value of the outstanding lease payments. The lease payments include fixed payments, as well as payments where there is
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reasonable certainty that a purchase option will be exercised or a lease option will be terminated. The variable rent determined based
on a certain percentage of sales is not included in the lease payment, and is included in the current profit and loss when it actually
occurs. The Group will list the non-liabilities within one year that lease liabilities will be paid one year. from the balance sheet date.
On the commencement date, the Company shall initially measure the right-of-use asset at cost. The cost of the right-of-use asset shall
comprise the amount of the initial measurement of the lease liability and any lease payments made at or before the commencement
date, and any initial direct costs incurred by the lessee etc, less any lease incentives received, If ownership of the leased asset
transfers to the Group at the end of the lease term, depreciation is calculated using the estimated useful life of the asset. Otherwise,
the right-of-use assets are depreciated over the shorter of the lease term and the estimated useful lives of the assets. Where the
carrying amount of an asset or a cash generating unit exceeds its recoverable amount, the asset or cash generating unit is considered
impaired and is written down to its recoverable amount.
A short-term lease is a lease that, at the commencement date, has a lease term of 12 months or less, and has a low-value asset leases.
The Group does not recognize the right-of-use assets and lease liabilities. The Group recognizes lease payments on short-term leases
and leases of low-value assets in the related asset costs or profit or loss on a straight-line basis over the lease term.
The Group accounts for a lease modification as a separate lease if both:(1) the modification increases the scope of the lease by adding
the right to use one or more underlying assets; (2) the consideration for the lease increases by an amount commensurate with the
stand-alone price for the increase in scope and any appropriate adjustments to that stand-alone price to reflect the circumstances of
the particular contract.
For a lease modification that is not accounted for as a separate lease, at the effective date of the lease modification the Group
remeasures the lease liability by discounting the revised lease payments using a revised discount rate. Decreasing the carrying
amount of the right-of-use asset to reflect the partial or full termination of the lease for lease modifications that decrease the scope of
the lease. The Group recognizes in profit or loss any gain or loss relating to the partial or full termination of the lease. Other lease
modifications will remeasure lease liabilities, and the group will make a corresponding adjustment to the right-of-use asset book
value.
(b) The Group acts as the lessor
A lease that transfers substantially all the risks and rewards associated with the ownership of the leased asset is a finance lease. Other
leases are operating leases.
(i) Operating lease
When the Company operates leased buildings, machinery and equipment, and means of transport, the rental income from operating
leases shall be recognized in accordance with the straight-line method during the lease term. The Company will include variable rent
determined based on a percentage of sales in rental income when it actually incurs. For any modification to an operating lease, the
Group treats it as a new lease from the effective date of the modification, and the received or receivable lease payments related to the
lease prior to the modification are treated as lease payments of the new lease.
(ii) Finance lease
On the beginning date of the lease term, the Company recognizes the finance lease receivables for finance leases and derecognizes
related assets. The Company presents the finance lease receivables as long-term receivables, and the finance lease receivables
received within one year (including one year) from the balance sheet date are presented as non-current assets due within one year.
27. Other important accounting policies and accounting estimates
The Group continually Estimates the critical accounting estimates and key assumptions applied based on historical experience and
other factors, including expectations of future events that are believed to be reasonable.
The critical accounting estimates and key assumptions that have a significant risk of possibly causing a material adjustment to book
values of assets and liabilities within the next accounting year are outlined below:
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(a) Income tax
The Group is subject to Income tax in numerous jurisdictions. There are some transactions and events for which the ultimate tax
determination is uncertain during the ordinary course of business. Significant judgement is required from the Group in determining
the provision for Income tax in each of these jurisdictions. Where the final identified outcome of these tax matters is different from
the initially-recorded amount, such difference will impact the income tax expenses and deferred income tax in the period in which
such determination is finally made.
(b) Deferred income tax
Estimates on deferred tax assets are based on estimates on amount of taxable income and applicable tax rate for every year.
Realisation of deferred income tax is subject to sufficient taxable income that is possible to be obtained by the Group in the future.
Change of the future tax rate as well as the reversed time of temporary difference might have effects on tax expense (income) and the
balance of deferred tax assets or liabilities. Those estimates may also cause significant adjustment on deferred tax.
(c) Impairment of long-term assets (excluding goodwill)
Long-term assets at the balance sheet date should be subject to impairment testing if there are any indications of impairment.
Management determines whether the long-term assets impaired or not by evaluating and analysing following aspects: (1) whether the
event affecting assets impairment occurs; (2) whether the expected obtainable present value of future cash flows is lower than the
asset’s carrying amount by continually using the assets or disposal; and (3) whether the assumptions used in expected obtainable
present value of future cash flows are appropriate.
Various assumptions, including the discount rate and growth rate applied in the method of present value of future cash flow, are
required in evaluating the recoverable amount of assets. If these assumptions cannot be conformed, the recoverable amount should be
modified, and the long-term assets may be impaired accordingly.
(d) The useful life of fixed assets
Management estimates the useful life of fixed assets, based on historical experiences on using fixed assets that have similar
properties and functions. When there are differences between actually useful life and previously estimation, management will adjust
estimation to useful life of fixed assets. The fixed assets would be written off or written down when fixed assets been disposed or
became redundant. Thus, the estimated result based on existing experience may be different from the actual result of the next
accounting period, which may cause major adjustment to book value of fixed assets on balance sheet.
(e) Goodwill impairment
Goodwill impairment reviews are undertaken annually or more frequently if events or changes in circumstances indicate a potential
impairment. For the purpose of impairment testing, goodwill acquired in a business combination is allocated to each of the
cash-generating units (“CGUs”), or groups of CGUs, and future cash flow from each CGU or CGUs is forcasted and discounted with
appropriate discount rate.
28. Significant accounting policies and changes in accounting estimates
（1）Important accounting policy changes
√ Applicable □Not applicable
Contents and reasons for changes in accounting
Approval procedure Remark
policy
On December 31, 2021, the Ministry of Finance
promulgated the "Notice on Printing and Issuing"
The ninth meeting of the ninth
(Cai Kuai [2021] No. 35) (hereinafter referred to
board of directors and the ninth
as "Standard Interpretation No. 15"), regarding
meeting of the ninth board of
the company's fixed assets before they reach the
supervisors held on April 28, 2022 The adoption of Interpretation No. 15
intended use state or The accounting treatment of
reviewed and approved the did not have a significant impact on
external sales of products or by-products
company's disclosure of accounting the financial position and operating
produced in the R&D process and the judgment
statements in accordance with the results of the Company.
on loss-making contracts have been clarified.
requirements of Standard
Standard Interpretation No. 15 "Accounting
Interpretation No. 15 from January
treatment of external sales of products or
1, 2022.
by-products produced by enterprises before their
fixed assets reach their intended usable state or in
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the process of research and development" and
"Judgment on onerous contracts" from January 1,
2022 to be implemented.
（2）Important accounting estimate changes
□ Applicable √Not applicable
29. Others
（1）Safety production costs
According to relevant regulations of the Ministry of Finance and National Administration of Work Safety, a subsidiary of the Group
which is engaged in producing and selling polysilicon appropriates safety production costs on following basis:
(a) 4% for revenue below RMB10 million (inclusive) of the year;
(b) 2% for the revenue between RMB10 million to RMB100 million (inclusive) of the year;
(c) 0.5% for the revenue between RMB100 million to RMB1 billion (inclusive) of the year;
(d) 0.2% for the revenue above RMB1 billion of the year.
The safety production costs are mainly used for the overhaul, renewal and maintenance of safety facilities. The safety production
costs are charged to costs of related products or profit or loss when appropriated, and safety production costs in equity account are
credited correspondingly. When using the special reserve, if the expenditures are expenses in nature, the expenses incurred are offset
against the special reserve directly when incurred. If the expenditures are capital expenditures, when projects are completed and
transferred to fixed assets, the special reserve should be offset against the cost of fixed assets, and a corresponding accumulated
depreciation are recognized. The fixed assets are no longer be depreciated in future.
（2）Segment information
The Group identifies operating segments based on the internal organisation structure, management requirements and internal
reporting system, and discloses segment information of reportable segments which is determined on the basis of operating segments.
An operating segment is a component of the Group that satisfies all of the following conditions: (a) the component is able to earn
revenue and incur expenses from its ordinary activities; (b) whose operating results are regularly reviewed by the Group’s
management to make decisions about resources to be allocated to the segment and to assess its performance, and (c) for which the
information on financial position, operating results and cash flows is available to the Group. If two or more operating segments have
similar economic characteristics and satisfy certain conditions, they are aggregated into one single operating segment.
VI.Taxation
1. The main categories and rates of taxes
Category Taxable basis Tax rate
Enterprise income tax Taxable income 0%-25%
Taxable value-added amount (Tax
payable is calculated using the taxable
Value-added tax (“VAT”) sales amount multiplied by the applicable 1%-13%
tax rate less deductible VAT input of the
current period)
City maintenance and construction tax VAT paid 1%-7%
Educational surcharge VAT paid 5%
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CSG Semi-annual Report 2022
2. Tax incentives
Tianjin CSG Energy-Saving Glass Co., Ltd. (“Tianjin Energy Conservation”) passed review on a high and new tech enterprise in
2021 and obtained the Certificate of High and New Tech Enterprise, the period of validity is three years. It applies to 15% tax rate for
three years since 2021.
Dongguan CSG Architectural Glass Co., Ltd. (“Dongguan CSG”) passed review on a high and new tech enterprise in 2019 and
obtained the Certificate of High and New Tech Enterprise, the period of validity is three years. It applies to 15% tax rate for three
years since 2019. In the 2022 high-tech enterprise qualification review, the income tax rate of 15% will be temporarily applied during
the reporting period.
Wujiang CSG East China Architectural Glass Co., Ltd. (“Wujiang CSG Engineering”) passed review on a high and new tech
enterprise in 2020 and obtained the Certificate of High and New Tech Enterprise, the period of validity is three years. It applies to
15% tax rate for three years since 2020.
Dongguan CSG Solar Glass Co., Ltd. (“Dongguan CSG Solar”) passed review on a high and new tech enterprise in 2020 and
obtained the Certificate of High and New Tech Enterprise, the period of validity is three years. It applies to 15% tax rate for three
years since 2020.
Yichang CSG Polysilicon Co., Ltd. (“Yichang CSG Polysilicon”) passed review on a high and new tech enterprise in 2020 and
obtained the Certificate of High and New Tech Enterprise, the period of validity is three years. It applies to 15% tax rate for three
years since 2020.
Dongguan CSG PV-tech Co., Ltd. (“Dongguan CSG PV-tech”) passed review on a high and new tech enterprise in 2019 and
obtained the Certificate of High and New Tech Enterprise, the period of validity is three years. It applies to 15% tax rate for three
years since 2019.In the 2022 high-tech enterprise qualification review, the income tax rate of 15% will be temporarily applied during
the reporting period.
Hebei Shichuang Glass Co., Ltd. (“Hebei Shichuang”) passed review on a high and new tech enterprise in 2019 and obtained the
Certificate of High and New Tech Enterprise, the period of validity is three years. It applies to 15% tax rate for three years since
2019.In the 2022 high-tech enterprise qualification review, the income tax rate of 15% will be temporarily applied during the
reporting period.
Wujiang CSG Glass Co., Ltd. (“Wujiang CSG”) passed review on a high and new tech enterprise in 2020, and obtained the
Certificate of High and New Tech Enterprise, and the period of validity was three years. It applies to 15% tax rate for three years
since 2020.
Xianning CSG Glass Co Ltd. (“Xianning CSG”) passed review on a high and new tech enterprise in 2020, and obtained the
Certificate of High and New Tech Enterprise, and the period of validity was three years. It applies to 15% tax rate for three years
since 2020.
Xianning CSG Energy-Saving Glass Co., Ltd. (“Xianning CSG Energy-Saving”) passed review on a high and new tech enterprise in
2021, and obtained the Certificate of High and New Tech Enterprise, and the period of validity was three years. It applies to 15% tax
rate for three years since 2021.
Yichang CSG Photoelectric Glass Co., Ltd. (“Yichang CSG Photoelectric”) passed review on a high and new tech enterprise in 2021,
and obtained the Certificate of High and New Tech Enterprise, and the period of validity was three years. It applies to 15% tax rate
for three years since 2021.
Yichang CSG Display Co., Ltd (“Yichang CSG Display”) passed review on a high and new tech enterprisein 2021, and obtained
the Certificate of High and New Tech Enterprise, and the period of validity was three years. It applies to 15% tax rate for three years
since 2021.
Qingyuan CSG New Energy-Saving Materials Co., Ltd. (“Qingyuan CSG Energy-Saving”) passed review on a high and new tech
enterprise in 2019, and obtained the Certificate of High and New Tech Enterprise, and the period of validity was three years. It
applies to 15% tax rate for three years since 2019.In the 2022 high-tech enterprise qualification review, the income tax rate of 15%
will be temporarily applied during the reporting period.
Hebei CSG Glass Co Ltd. (“Hebei CSG”) passed review on a high and new tech enterprise in 2021, and obtained the Certificate of
High and New Tech Enterprise, and the period of validity was three years. It applies to 15% tax rate for three years since 2021.
Shenzhen CSG Applied Technology Co Ltd. (“Shenzhen Technology”) passed review on a high and new tech enterprise in 2021,
and obtained the Certificate of High and New Tech Enterprise, and the period of validity was three years. It applies to 15% tax rate
for three years since 2021.
Xianning CSG Photoelectric Glass Co., Ltd. (“Xianning Photoelectric”) passed review on a high and new tech enterprise in 2019 and
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CSG Semi-annual Report 2022
obtained the Certificate of High and New Tech Enterprise, the period of validity is three years. It applies to 15% tax rate for three
years since 2019.In the 2022 high-tech enterprise qualification review, the income tax rate of 15% will be temporarily applied during
the reporting period.
Dongguan CSG Crystal Yuxin Materials Co., Ltd. (“Dongguan Jing Yu Company”) passed review on a
high and new tech enterprise in 2021 and obtained the Certificate of High and New Tech Enterprise, the period of validity is three
years. It applies to 15% tax rate for three years since 2021.
Sichuan CSG Energy Conservation Glass Co., Ltd. (“Sichuan CSG Energy Conservation”) obtains enterprise income tax preferential
treatment for Western Development, and temporarily calculates enterprise income tax at a tax rate of 15% for current year.
Chengdu CSG Glass Co., Ltd. (“Chengdu CSG”) obtains enterprise income tax preferential treatment for Western Development, and
temporarily calculates enterprise income tax at a tax rate of 15% for current year.
Xian CSG Energy Conservation Glass Co., Ltd. (“Xian CSG Energy Conservation”) obtains enterprise income tax preferential
treatment for Western Development, and temporarily calculates enterprise income tax at a tax rate of 15% for current year.
Guangxi CSG New Energy Materials Technology Co., Ltd. ( “Guangxi CSG New Energy Materials Company”) obtains enterprise
income tax preferential treatment for Western Development, and temporarily calculates enterprise income tax at a tax rate of 15% for
current year.
Zhaoqing CSG New Energy Technology Co., Ltd. ( “Zhaoqing CSG New Energy Company”),Zhangzhou CSG Kibing PV Energy
Co., Ltd. (“Zhangzhou CSG PV Energy”), Heyuan CSG Kibing PV Energy Co., Ltd. (“Heyuan CSG”), and Shaoxing CSG Kibing
New Energy Co., Ltd. (“Shaoxing CSG New Energy”), Xianning CSG PV Energy Co., Ltd. (“Xianning PV Energy”), Zhanjiang
CSG New Energy Co., Ltd. (“Zhanjiang PV Energy”), are public infrastructure project specially supported by the state in accordance
with the Article 87 in Implementing Regulations of the Law of the People's Republic of China on Enterprise Income Tax, and can
enjoy the tax preferential policy of “three-year exemptions and three-year halves”, that is, starting from the tax year when the first
revenue from production and operation occurs, the enterprise income tax is exempted from the first to the third year, while half of the
enterprise income tax is collected for the following three years.
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CSG Semi-annual Report 2022
3. Others
Some subsidiaries of the Group have used the “exempt, credit, refund” method on goods exported and the refund rate is0%-13%。
VII. Notes to the consolidated financial statements
1. Cash at bank and on hand
Unit: RMB
Item Balance at the end of the period Balance at the beginning of the period
Cash on hand 130
Cash at bank 2,523,965,640 2,453,477,573
Other cash balances 346,076,771 312,448,333
Total 2,870,042,541 2,765,925,906
Including: Total overseas deposits 19,686,544 8,906,359
The total amount of funds that have restrictions
6,076,772 9,448,334
on use due to mortgages, pledges, or freezes
2 .Trading financial assets
Unit: RMB
Item Balance at the end of the period Balance at the beginning of the period
Financial assets measured at fair value
1,209,000,000 999,600,000
through profit or loss
Of which:
Structured deposits 1,209,000,000 999,600,000
Total 1,209,000,000 999,600,000
3. Notes receivable
（1）Notes receivable listed by classification
Unit: RMB
Item Balance at the end of the period Balance at the beginning of the period
Trade acceptance notes 445,375 19,220,984
Total 445,375 19,220,984
Unit: RMB
Balance at the end of the period Balance at the beginning of the period
Provision for bad Provision for bad
Carrying amount Carrying amount
Category debts debts
Book
Prop Prop Book value
Propo value Propor
Amount Amount ortio Amount Amount ortio
rtion tion
n n
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CSG Semi-annual Report 2022
Notes
receivable
with
provision
2,226,877 100% 1,781,502 80% 445,375 28,438,249 71% 20,778,806 73% 7,659,443
for bad
debts on a
single
item basis
Notes
receivable
with bad
debt 11,561,541 29% 11,561,541
provision
based on
portfolio
Total 2,226,877 100% 1,781,502 80% 445,375 39,999,790 100% 20,778,806 52% 19,220,984
Provision for bad debts on the individual basis:
Unit: RMB
Closing balance
Name Provision
Carrying
for bad Proportion Reasons for withdrawal
amount
debts
It mainly represented trade acceptance notes
Notes receivable with due from evergrande of the part of subsidiary,
provision for bad debts on a 2,226,877 1,781,502 80% due to difficult to pay or deterioration of cash
single item basis operations, the provision for bad debts was
fully or partially accrued.
Total 2,226,877 1,781,502
（2）Provision for bad debts accrued, recovered or reversed in the current period
Provision for bad debts in the current period:
Unit: RMB
Amount of change in the current period
Opening Transfer to
Category Collect or Closing balance
balance Provision Write-off Accounts
reversal
Receivable
Individual provision
20,778,806 18,997,304 1,781,502
for bad debts
Total 20,778,806 18,997,304 1,781,502
（ 3）At the end of the period, the company transferred the bills to accounts receivable due to the failure of the drawer to
perform
Unit: RMB
Item Amount of receivables transferred at the end of the period
Trade acceptance notes 27,584,466
Total 27,584,466
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CSG Semi-annual Report 2022
4.Accounts receivable
（1）Accounts receivable disclosed by category
Unit: RMB
End of term Beginning of term
Provision for bad Provision for bad
Carrying amount Carrying amount
debts debts
Category
Book value Prop Prop Book value
Propor Propo
Amount Amount Amount ortio Amount ortio
tion rtion
n n
Provision
for bad
debts on
182,594,849 19% 120,581,801 66% 62,013,048 159,936,493 19% 103,566,693 65% 56,369,800
the
individual
basis
Provision
for bad
796,194,994 81% 15,924,375 2% 780,270,619 687,914,171 81% 13,758,284 2% 674,155,887
debts by
portfolio
Total 978,789,843 100% 136,506,176 14% 842,283,667 847,850,664 100% 117,324,977 14% 730,525,687
Provision for bad debts on the individual basis:
Unit: RMB
Closing balance
Name Carrying Provision for
Proportion Reasons for withdrawal
amount bad debts
It mainly represented the goods receivable due from a
Provision for bad
client of the part of subsidiary, due to business
debts on the 182,594,849 120,581,801 66%
dispute or deterioration of customer operations, the
individual basis
provision for bad debts was fully or partially accrued.
Total 182,594,849 120,581,801
Provision for bad debts by portfolio:
Unit: RMB
Closing balance
Name
Carrying amount Provision for bad debts Proportion
Portfolio 1 796,194,994 15,924,375 2%
Total 796,194,994 15,924,375
Disclosure by the aging of accounts receivable
Unit: RMB
Aging Closing balance
Within 1 year (including 1 year) 708,817,267
1 to 2 years 170,870,147
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CSG Semi-annual Report 2022
2 to 3 years 48,962,202
Over 3 years 50,140,227
Total 978,789,843
（2）Provision for bad debts accrued, recovered or reversed in the current period
Provision for bad debts in the current period:
Unit: RMB
Amount of change in the current period
Opening Closing
Category Bills receivable Collect or
balance Provision Write-off balance
transferred in reversal
Accounts receivable
117,324,977 6,976,393 18,997,304 5,880,424 912,074 136,506,176
bad debt provision
Total 117,324,977 6,976,393 18,997,304 5,880,424 912,074 136,506,176
（3）Accounts receivable actually written off in the current period
Unit: RMB
Item Amount written off
Accounts receivable from subsidiaries 912,074
（4）Top 5 of the closing balance of the accounts receivable collected according to the arrears party
Unit: RMB
Proportion in the total balance
Closing balance of accounts Ending balance of bad debt
Name of accounts receivable at the
receivable reserves
end of the period
Total balances for the five
328,308,132 34% 49,011,582
largest accounts receivable
Total 328,308,132 34%
5.Receivables financing
Unit: RMB
Item Closing balance Opening balance
Bank acceptance notes 582,328,808 297,046,123
Total 582,328,808 297,046,123
6. Advances to suppliers
（1）Listed by aging analysis
Unit: RMB
Closing balance Opening balance
Aging
Amount Proportion Amount
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CSG Semi-annual Report 2022
within1year 234,152,262 100% 74,971,763 98%
1 to 2years 618,299 486,849 1%
2 to 3years 35,000 520,498 1%
over 3 years 520,498 118,166
Total 235,326,059 76,097,276
（2）Top 5 of the closing balance of the advances to suppliers collected according to the target
Unit: RMB
Percentage in total advances to suppliers
Item Balance
balance
Total balances for the five largest advances to
135,780,759 58%
suppliers
7. Other receivables
Unit: RMB
Item Closing balance Opening balance
Other receivables 201,090,652 183,696,711
Total 201,090,652 183,696,711
（1）Other receivables
1）Classification of other receivables by nature
Unit: RMB
Nature Closing book balance Opening book balance
Receivables from special fund for talent 171,000,000 171,000,000
Payments made on behalf of other parties 48,887,030 47,686,819
Advance payment (i) 10,366,164 10,366,164
Refundable deposits 19,669,918 9,191,412
Petty cash 1,572,171 497,273
Others 13,123,214 8,110,638
Total 264,618,497 246,852,306
(i) It is the prepayment for materials of the subsidiary Yingde CBM Mining Co., Ltd. The prepayments accounts were transferred to
other receivables and the provision of the bad debts was provided individually.
2）Withdrawal of bad debt provision
Unit: RMB
Phase I Phase II Phase III
Expected credit loss Expected credit loss
Bad debt provision Expected credit Total
for the entire duration for the entire duration
losses in the next 12
(no credit impairment (credit impairment
months
occurred) occurred)
Balance on1 January 2022 1,166,526 61,989,069 63,155,595
Balance on1 January 2022in
current period
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CSG Semi-annual Report 2022
Withdrawal 412,069 412,069
Recovery 15,816 15,816
Write-off 24,003 24,003
Balance on 30 June 2022 1,538,776 61,989,069 63,527,845
3）Disclosure by the aging of other receivables
Unit: RMB
Aging Closing balance
Within 1 year (including 1 year) 55,141,858
1 to 2 years 8,856,860
2 to 3 years 910,743
Over 3 years 199,709,036
3 to 4 years 2,619,497
4 to 5 years 2,042,730
Over 5 years 195,046,809
Total 264,618,497
4）Provision for bad debts withdrawn, recovered or reversed during the report period
Provision for bad debts:
Unit: RMB
Amount of change in the current period
Opening
Category Collect or Closing balance
balance Provision Write-off Others
reversal
Provision for
bad debts of
63,155,595 412,069 15,816 24,003 63,527,845
other
receivables
Total 63,155,595 412,069 15,816 24,003 63,527,845
5）Other receivables actually written off in the current period
Unit: RMB
Item Write-off amount
Other receivables 24,003
6）Top 5 of the closing balance of the other accounts receivable collated according to the arrears party
Unit: RMB
Proportion in the
total balance of
Closing balance of
Name of Company Nature of business Closing balance Aging other receivables
bad debt provision
at the end of the
period
Independent third
171,000,000 Over 5 years 65% 51,300,000
Company A party
Governmental Independent third 24,000,000 Within 1 year 9% 480,000
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CSG Semi-annual Report 2022
department B party
Governmental Independent third 11,556,004 Over 5 years 4% 231,120
department C party
Independent third
Company D 10,366,164 Over 5 years 4% 10,366,164
party
Governmental Independent third 10,000,000 Within 1 year 4% 200,000
department E party
Total 226,922,168 86% 62,577,284
8. Inventories
（1） Inventory classification
Unit: RMB
Closing balance Opening balance
Item Reserve for Reserve for
Carrying Carrying
depreciation of Book value depreciation of Book value
amount amount
inventory inventory
Raw materials 697,911,751 976,330 696,935,421 389,937,319 1,002,085 388,935,234
Products in
32,012,843 32,012,843 22,801,437 22,801,437
process
Products in
984,442,555 1,851,314 982,591,241 632,814,981 5,829,059 626,985,922
stock
Material in
55,533,224 160,330 55,372,894 55,480,764 397,832 55,082,932
circulation
Total 1,769,900,373 2,987,974 1,766,912,399 1,101,034,501 7,228,976 1,093,805,525
（2）Provision for decline in the value of inventories
单位：元
Increased in this term Decreased in this term
Opening
Item Reversal or Closing balance
balance Provision Others Others
write off
Raw materials 1,002,085 25,755 976,330
Products in
5,829,059 3,977,745 1,851,314
stock
Material in
397,832 237,502 160,330
circulation
Total 7,228,976 4,241,002 2,987,974
9.Other current assets
Unit: RMB
Item Closing balance Opening balance
VAT to be offset 50,432,826 128,033,622
Enterprise income tax prepaid 8,211,086 3,771,709
VAT input to be recognized 9,956,323 8,888,295
Others 16,435 11,672
Total 68,616,670 140,705,298
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CSG Semi-annual Report 2022
10. Investment property
（1）Investment real estate using cost measurement model
□Applicable √Not applicable
（2）Investment property with fair value measurement mode
√Applicable □ Not applicable
Unit: RMB
Houses, buildings and related land use
Item Total
rights
I. Opening balance 383,084,500 383,084,500
II. Changes in the current period
III. Closing balance 383,084,500 383,084,500
11. Fixed assets
Unit: RMB
Item Closing balance Opening balance
Fixed assets 9,336,413,529 8,566,515,026
Total 9,336,413,529 8,566,515,026
（1）Particulars of fixed assets
Unit: RMB
Machinery and
Item Buildings Motor vehicles Total
equipment
I. Original book value:
1. Opening balance 4,175,491,233 12,040,306,471 257,186,014 16,472,983,718
2. Increased amount of
the period
(1) Acquisition 2,061,137 21,622,510 8,356,693 32,040,340
(2) Transfers from
construction in 388,181,424 1,841,384,996 6,455,298 2,236,021,718
progress
(3)Increase in business
mergers
(4) Others 3,107,362 2,009,907 5,117,269
3. Decreased amount of
the period
(1) Disposal or
243,357 31,222,551 7,380,031 38,845,939
retirement
(2) Transfer to
construction in 183,920,987 324,752,456 401,729 509,075,172
progress
(3) Others 1,721,971 822,894 180,124 2,724,989
4. Closing balance 4,379,847,479 13,549,623,438 266,046,028 18,195,516,945
II. Accumulative
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CSG Semi-annual Report 2022
Machinery and
Item Buildings Motor vehicles Total
equipment
depreciation
1. Opening balance 1,129,349,070 5,532,791,435 230,711,343 6,892,851,848
2. Increased amount of
the period
(1) Provision 63,927,057 358,444,891 13,123,636 435,495,584
(2) Others 908,372 287,308 1,195,680
3. Decreased amount of
the period
(1) Disposal or
34,034 5,782,357 7,232,019 13,048,410
retirement
(2) Transfer to
construction in 47,589,170 240,194,191 299,369 288,082,730
progress
(3) Others 372,612 155,946 6,861 535,419
4. Closing balance 1,145,280,311 5,646,012,204 236,584,038 7,027,876,553
III. Impairment
provision
1. Opening balance 59,901,148 953,451,046 264,650 1,013,616,844
2. Increased amount of
the period
(1) Construction in
111,232,516 730,885,926 528,767 842,647,209
progress transferred in
3. Decreased amount of
the period
(1) Disposal or scrap 25,037,190 25,037,190
4. Closing balance 171,133,664 1,659,299,782 793,417 1,831,226,863
IV. Book value
1. Closing book value 3,063,433,504 6,244,311,452 28,668,573 9,336,413,529
2. Opening book value 2,986,241,015 5,554,063,990 26,210,021 8,566,515,026
（2）Fixed assets with pending certificates of ownership
Unit: RMB
Reasons for not yet obtaining certificates
Item Carrying amount
of title
Have submitted the required documents
and are in the process of application, or
Buildings 783,783,208
the related land use right certificate
pending
12. Construction in process
Unit: RMB
Item Closing balance Opening balance
Construction in process 2,809,337,684 2,461,088,650
Total 2,809,337,684 2,461,088,650
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CSG Semi-annual Report 2022
(1) Particulars of construction in process
Unit: RMB
Closing balance Opening balance
Item Provision for
Provision for
Book balance impairment Book value Book balance Book value
impairment loss
loss
Yichang CSG
polysilicon
1,535,368,156 857,890,185 677,477,971
tech-innovation
project
Anhui
Lightweight &
high-permeability
panel for solar
1,541,203,471 1,541,203,471 765,170,527 765,170,527
energy
equipment
manufacturing
base project
Qingyuan New
Materials Phase I
technical 221,679,025 94,897,537 126,781,488 297,932,280 174,675,600 123,256,680
transformation
project
Zhaoqing CSG
high-grade
energy saving 55,183,034 55,183,034 279,138,811 279,138,811
glass production
line project
Dongguan PV B
Building 450MW
PERC battery 186,866,743 184,998,076 1,868,667 186,866,743 184,998,076 1,868,667
technology
upgrade project
Tianjin
Energy-saving
Coating
95,225,037 95,225,037
Production Line
Purchase and
Upgrade Project
Xianning CSG
1200T/D
Photovoltaic
Packaging 287,738,732 287,738,732 66,449,089 66,449,089
Material
Production Line
Project
Anhui Fengyang
quartz sand 253,100 253,100 56,656,483 56,656,483
project
Wujiang
70,192,064 70,192,064 51,766,295 51,766,295
Architectural
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CSG Semi-annual Report 2022
Closing balance Opening balance
Item Provision for
Provision for
Book balance impairment Book value Book balance Book value
impairment loss
loss
Glass newly
building
intelligent
manufacturing
plant
construction
project
Wujiang Float
Lightweight and
High-efficiency
double-glass
106,468,188 106,468,188 39,032,912 39,032,912
processing
production line
construction
project
LED Sapphire
32,420,412 32,420,412 32,420,412 32,420,412
Substrate Project
Zhaoqing CSG
high-grade
automobile glass 54,688,369 54,688,369 27,941,928 27,941,928
production line
project
Hebei Panel
Glass ultra-thin
electronic glass
75,707,997 75,707,997 24,393,421 24,393,421
Line II
construction
project
Dongguan solar
double-glass
extension
274,502,743 274,502,743 2,389,871 2,389,871
technology
transformation
upgrade project
Dongguan solar
light and
high-efficiency
double-glass
2,000,908 2,000,908 551,795 551,795
processing
production line
construction
project
Guangxi Beihai
Photovoltaic
Green Energy 3,080,041 3,080,041 382,997 382,997
Industry Park
(Phase I) Project
Hefei CSG 820,064 820,064
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CSG Semi-annual Report 2022
Closing balance Opening balance
Item Provision for
Provision for
Book balance impairment Book value Book balance Book value
impairment loss
loss
Energy-saving
Glass Intelligent
Manufacturing
Industry Base
Project
Dongguan Solar
G6/G7 Line
Process and
20,679,019 20,679,019
Equipment
Upgrading
Project
Others 212,266,126 24,096,327 188,169,799 275,679,766 26,293,600 249,386,166
Total 3,145,750,036 336,412,352 2,809,337,684 3,737,366,523 1,276,277,873 2,461,088,650
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CSG Semi-annual Report 2022
(2) Changes in important construction projects in the current period
Unit: RMB
Including: Interest
Proportion Accumulate
amount capitaliz
Transfer to between d amount of
Opening Increased this Closing interest ation Fund
Project Budget fixed assets in engineering Progress Projects interest
balance term balance capitalizatio rate in recourse
this term input and capitalizatio
n in current current
budget n
period period
Yichang CSG
Internal
polysilicon
49,520,000 1,535,368,156 1,511,107,324 24,260,832 100% 100% fund and
tech-innovation bank loan
project
Anhui Lightweight
&
high-permeability Internal
panel for solar 3,739,020,000 765,170,527 776,565,916 532,972 1,541,203,471 41% 85% 17,468,116 15,022,618 4.20% fund and
energy equipment bank loan
manufacturing
base project
Qingyuan New
Materials Phase I Internal
technical 534,870,000 297,932,280 4,614,306 363,834 80,503,727 221,679,025 4% 4% fund and
transformation bank loan
project
Zhaoqing CSG
high-grade energy Internal
saving glass 500,000,000 279,138,811 27,140,143 251,085,070 10,850 55,183,034 74% 89% 5,405,566 1,250,641 3.80% fund and
production line bank loan
project
Dongguan PV B
Building 450MW Internal
PERC battery 100,990,000 186,866,743 186,866,743 1% 3% fund and
technology bank loan
upgrade project
112
CSG Semi-annual Report 2022
Including: Interest
Proportion Accumulate
amount capitaliz
Transfer to between d amount of
Opening Increased this Closing interest ation Fund
Project Budget fixed assets in engineering Progress Projects interest
balance term balance capitalizatio rate in recourse
this term input and capitalizatio
n in current current
budget n
period period
Tianjin
Energy-saving
Internal
Coating
114,945,000 95,225,037 5,636,400 100,861,437 100% 100% 2,644,397 1,134,116 4% fund and
Production Line bank loan
Purchase and
Upgrade Project
Xianning CSG
1200T/D
Photovoltaic Internal
Packaging 858,090,000 66,449,089 221,289,643 287,738,732 33% 65% 10,778,660 5,655,493 4.52% fund and
Material bank loan
Production Line
Project
Internal
Anhui Fengyang
1,029,300,000 56,656,483 83,192,287 139,595,670 253,100 14% 56% 1,144,948 1,026,584 4.55% fund and
quartz sand project bank loan
Wujiang
Architectural
Glass newly Internal
building intelligent 179,140,610 51,766,295 18,921,344 495,575 70,192,064 40% 45% 819,017 497,923 3.85% fund and
manufacturing bank loan
plant construction
project
Wujiang Float
Lightweight and
High-efficiency
Internal
double-glass
158,850,000 39,032,912 69,360,586 1,925,310 106,468,188 67% 80% 1,212,348 824,392 4% fund and
processing bank loan
production line
construction
project
LED Sapphire 35,000,000 32,420,412 32,420,412 93% 93% 4,650,543 Internal
113
CSG Semi-annual Report 2022
Including: Interest
Proportion Accumulate
amount capitaliz
Transfer to between d amount of
Opening Increased this Closing interest ation Fund
Project Budget fixed assets in engineering Progress Projects interest
balance term balance capitalizatio rate in recourse
this term input and capitalizatio
n in current current
budget n
period period
Substrate Project fund and
bank loan
Zhaoqing CSG
high-grade Internal
automobile glass 609,830,000 27,941,928 26,746,441 54,688,369 9% 13% fund and
production line bank loan
project
Hebei Panel Glass
ultra-thin
Internal
electronic glass
284,964,800 24,393,421 51,867,735 553,159 75,707,997 30% 50% 645,947 645,568 4.35% fund and
Line II bank loan
construction
project
Dongguan solar
double-glass
Internal
extension
143,490,000 2,389,871 272,112,872 274,502,743 57% 60% 461,552 461,552 3.56% fund and
technology bank loan
transformation
upgrade project
Dongguan solar
light and
high-efficiency
Internal
double-glass
76,140,000 551,795 1,449,113 2,000,908 77% 100% fund and
processing bank loan
production line
construction
project
114
CSG Semi-annual Report 2022
Including: Interest
Proportion Accumulate
amount capitaliz
Transfer to between d amount of
Opening Increased this Closing interest ation Fund
Project Budget fixed assets in engineering Progress Projects interest
balance term balance capitalizatio rate in recourse
this term input and capitalizatio
n in current current
budget n
period period
Guangxi Beihai
Photovoltaic Internal
Green Energy 4,942,051,800 382,997 2,822,610 125,566 3,080,041 2% fund and
Industry Park bank loan
(Phase I) Project
Hefei CSG
Energy-saving
Internal
Glass Intelligent
210,190,000 820,064 820,064 fund and
Manufacturing bank loan
Industry Base
Project
Dongguan Solar
G6/G7 Line Internal
Process and 59,260,000 20,679,019 20,679,019 6% fund and
Equipment bank loan
Upgrading Project
Internal
Others 1,320,351,179 275,679,766 173,035,132 229,501,367 6,947,405 212,266,126 297,042 221,232 fund and
bank loan
Total 14,946,003,389 3,737,366,523 1,756,253,611 2,236,021,718 111,848,380 3,145,750,036 45,528,136 26,740,119
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CSG Semi-annual Report 2022
13. Right of use assets
Unit: RMB
Item Lease Land Rental housing Total
I. Original book value:
1. Opening balance 9,770,358 1,897,983 11,668,341
2. Increased amount of the
period
3. Decreased amount of the
period
(1) Others 473,610 473,610
4. Closing balance 9,296,748 1,897,983 11,194,731
II. Accumulative depreciation
1. Opening balance 942,985 813,421 1,756,406
2. Increased amount of the
period
(1) Provision 470,592 406,711 877,303
3. Decreased amount of the
period
(1) Others 473,610 473,610
4. Closing balance 939,967 1,220,132 2,160,099
III. Impairment provision
IV. Book value
1. Closing book value 8,356,781 677,851 9,034,632
2. Opening book value 8,827,373 1,084,562 9,911,935
14. Intangible assets
(1) Particulars of intangible assets
Unit: RMB
Patents and Exploitation
Item Land use rights Others Total
know-how rights
I. Original book
value:
1. Opening balance 1,169,898,169 428,988,220 5,651,751 46,713,240 1,651,251,380
2. Increased amount
of this period
(1) Acquisition 62,606,655 2,708,775 65,315,430
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CSG Semi-annual Report 2022
Patents and Exploitation
Item Land use rights Others Total
know-how rights
(2) Internal R&D 8,010,026 8,010,026
(3) Others 165,706 165,706
3. Decreased amount
of the period
(1) Others 259,999 259,999
4. Closing balance 1,232,504,824 436,998,246 5,651,751 49,327,722 1,724,482,543
II.Accumulated
amortization
1. Opening balance 230,710,042 194,971,917 4,591,610 40,155,929 470,429,498
2. Increased amount
of this period
(1) Provision 12,270,060 16,414,041 91,729 2,632,668 31,408,498
3. Decreased amount
of the period
(1) Others 91,001 91,001
4. Closing balance 242,980,102 211,385,958 4,683,339 42,697,596 501,746,995
III. Impairment
provision
1. Opening balance 13,201,347 9,133 13,210,480
2. Closing balance 13,201,347 9,133 13,210,480
IV. Book value
1. Closing book value 989,524,722 212,410,941 968,412 6,620,993 1,209,525,068
2. Opening book
939,188,127 220,814,956 1,060,141 6,548,178 1,167,611,402
value
At the end of the period, the intangible assets arising from internal research and development accounted for 20.07% of total of
intangible assets.
(2) Land use rights without property right certificates
Unit: RMB
Reason for not yet obtaining certificates
Item Book value
of title
Land use rights 4,903,343
As at June 30, 2022, ownership certificates of land use right (“Land ownership Certificates”) for certain land use rights of the Group
with carrying amounts of approximately RMB4,903,343 (cost: RMB6,685,352) had not yet been obtained by the Group (as at
December 31, 2021, carrying amount: RMB4,963,913, cost: RMB6,685,352). The Company’s management is of the view that there
is no legal restriction for the Group to apply for and obtain the Land Ownership Certificates and has no adverse effect on the Group’s
business operation.
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15. Development expenditure
Unit: RMB
The increased amount in the
The decrease amount in the period
period
Opening
Item Recognized as Transfer to Closing balance
balance Internal
development Others intangible current profit
expenditure assets and loss
Development
72,019,362 27,709,486 8,010,026 91,718,822
expenditure
Total 72,019,362 27,709,486 8,010,026 91,718,822
During Jan.-Jun. 2022, the total amount of research and development expenditures of the Group was RMB 293,587,416 (Jan.-Jun.
2021: RMB 235,137,041), including RMB265,877,930 (Jan.-Jun. 2021: RMB 224,886,882) recorded in income statement for current
period and the research and development expenditure with the amount of RMB 8,010,026 recognized as intangible assets for the
current period (Jan.-Jun. 2021: 1,247,970). At June 30, 2022, the intangible assets arising from internal research and development
accounted for 20.07% of total of intangible assets (31 December 2021: 20.47%).
16. Goodwill
(1) Book value of goodwill
Unit: RMB
Name of the companies Opening balance Increased this term Decreased this term Closing balance
Tianjin CSG
Energy-Saving Glass 3,039,946 3,039,946
Co., Ltd.
Xianning CSG
4,857,406 4,857,406
Photoelectric
Shenzhen CSG Display 389,494,804 389,494,804
Total 397,392,156 397,392,156
(2) Goodwill impairment provision
Unit: RMB
Name of the companies Opening balance Increased this term Decreased this term Closing balance
Shenzhen CSG
267,244,297 267,244,297
Displayer
Total 267,244,297 267,244,297
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CSG Semi-annual Report 2022
17. Long-term prepaid expenses
Unit: RMB
Item Opening balance Increased this term Amortized this term Other decreases
Expenses to be
3,013,721 510,145 289,845 3,234,021
amortized
Total 3,013,721 510,145 289,845 3,234,021
18. Deferred income tax assets/deferred income tax liabilities
(1) Unoffset deferred income tax assets
Unit: RMB
Closing balance Opening balance
Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference assets difference assets
Provision for asset
900,912,768 136,375,295 1,005,602,209 152,036,386
impairments
Deductible loss 309,731,654 59,171,312 621,359,522 106,718,563
Government grants 167,900,580 25,975,215 165,972,475 25,755,549
Accrued expenses 6,019,406 902,911 7,908,397 1,186,260
Inventory unrealized
40,952,102 6,091,553 50,797,613 7,619,642
profit
Depreciation of fixed
67,473,650 14,344,275 65,556,309 13,582,668
assets
Total 1,492,990,160 242,860,561 1,917,196,525 306,899,068
(2)Unoffset deferred income tax liabilities
Unit: RMB
Closing balance Opening balance
Deductible
Item Deferred income tax Deductible temporary Deferred income tax
temporary
liabilities difference liabilities
difference
Depreciation of fixed assets 533,523,643 81,918,910 527,215,830 80,756,420
Changes in fair value of
370,245,713 55,536,857 370,245,713 55,536,857
investment property
Total 903,769,356 137,455,767 897,461,543 136,293,277
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CSG Semi-annual Report 2022
(3) The net balances of deferred tax assets or liabilities
Unit: RMB
Off-set amount of Closing balance of Off-set amount of Opening balance of
deferred income tax deferred income tax deferred income tax deferred income tax
Item
assets and liabilities at assets or liabilities assets and liabilities at assets or liabilities after
the period-end after off-set the period-beginning off-set
Deferred tax assets 46,199,114 196,661,447 51,713,145 255,185,923
Deferred tax liabilities 46,199,114 91,256,653 51,713,145 84,580,132
(4) Details of unrecognized deferred income tax assets
Unit: RMB
Item Closing balance Opening balance
Deductible losses 2,046,255,537 2,045,391,888
Total 2,046,255,537 2,045,391,888
(5) Deductible losses of unrecognized deferred income tax assets will due the following years
Unit: RMB
Year Closing balance Opening balance Note
Year of 2022 83,303,539 83,303,539
Year of 2023 146,238,837 146,238,837
Year of 2024 178,208,832 178,208,832
Year of 2025 939,085,536 939,085,536
Year of 2026 698,555,144 698,555,144
Year of 2027 863,649
Total 2,046,255,537 2,045,391,888
19. Other non-current assets
Unit: RMB
Closing balance Opening balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Prepayment of
engineering 361,724,043 361,724,043 469,352,622 469,352,622
equipment
Prepayment for
lease of land use 64,250,000 64,250,000 14,810,000 14,810,000
rights
Large-denominati 100,000,000 100,000,000 100,000,000 100,000,000
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CSG Semi-annual Report 2022
on certificates of
deposit
Total 525,974,043 525,974,043 584,162,622 584,162,622
20. Short-term borrowings
(1) Classification of short-term borrowings
Unit: RMB
Item Closing balance Opening balance
Guaranteed loan 168,108,522 80,770,000
Unsecured loan 300,000,000 100,000,000
Total 468,108,522 180,770,000
(i)On June 30, 2022, the Company provided guarantees for short-term loans of RMB168,108,522 (31 December 2021: RMB
80,770,000).
(ii) On June 30, 2022, the interest rate range of Short-term borrowings is 2.70% - 4.05% (December 31, 2021: 3.40% - 3.90%).
21. Notes payable
Unit: RMB
Item Closing balance Opening balance
Trade acceptance notes 145,475,638 107,571,279
Bank acceptance notes 404,463,990 293,091,434
Total 549,939,628 400,662,713
22. Contract liabilities
Unit: RMB
Item Closing balance Opening balance
Contract liabilities 413,885,125 335,188,642
Total 413,885,125 335,188,642
23. Accounts payable
(1) List of accounts payable
Unit: RMB
Item Closing balance Opening balance
Materials payable 945,889,859 665,770,883
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CSG Semi-annual Report 2022
Equipment payable 244,832,123 268,623,795
Construction expenses payable 433,608,433 372,802,783
Freight payable 78,993,780 68,894,843
Utilities payable 88,134,291 47,260,003
Others 5,474,045 5,499,005
Total 1,796,932,531 1,428,851,312
(2) Significant accounts payable due for over one year
Unit: RMB
Item Closing balance Unpaid reason
The final account of the project has not been
Construction and equipments 172,773,389
completed, so it has not been settled.
Total 172,773,389
24. Employee benefits payable
(1) List of employee benefits payable
Unit: RMB
Item Opening balance Increased this term Decreased this term Closing balance
I. Short-term employee benefits
426,027,259 881,217,123 1,019,531,915 287,712,467
payable
II. Welfare after departure-
11,722 73,417,024 73,412,071 16,675
defined contribution plans
III.Termination benefits 173,998 1,462,816 1,636,814
Total 426,212,979 956,096,963 1,094,580,800 287,729,142
(2) List of short-term employee benefits
Unit: RMB
Item Opening balance Increased this term Decreased this term Closing balance
1. Wages and salaries, bonuses,
402,716,350 818,189,015 958,424,388 262,480,977
allowances and subsidies
2. Social security contributions 5,808 31,093,375 31,087,818 11,365
Including: Medical insurance 5,097 27,629,935 27,624,254 10,778
Work injury insurance 291 2,411,059 2,410,763 587
Maternity insurance 420 1,052,381 1,052,801
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CSG Semi-annual Report 2022
3. Housing funds 958,798 22,181,389 21,933,449 1,206,738
4.Labour union funds and
22,346,303 9,753,344 8,086,260 24,013,387
employee education funds
Total 426,027,259 881,217,123 1,019,531,915 287,712,467
(3) List of defined contribution plans
Unit: RMB
Item Opening balance Increased this term Decreased this term Closing balance
1. Basic pensions 11,644 71,000,361 70,995,998 16,007
2. Unemployment
78 2,416,663 2,416,073 668
insurance
Total 11,722 73,417,024 73,412,071 16,675
25. Tax payable
Unit: RMB
Item Closing balance Opening balance
Value-added-tax payable 63,220,964 77,539,743
Corporate income tax payable 63,421,971 81,469,865
Individual income tax payable 5,291,100 4,947,559
City maintenance and construction tax 4,221,243 5,853,393
Property tax 9,979,982 4,126,693
Education surcharge 3,232,672 4,662,534
Environmental tax 1,308,540 1,674,797
Others 3,975,678 4,735,097
Total 154,652,150 185,009,681
26. Other payables
Unit: RMB
Item Closing balance Opening balance
Interest payable 36,640,548 95,001,362
Other payables 185,226,388 194,439,115
Total 221,866,936 289,440,477
(1) Interest payable
Unit: RMB
123
CSG Semi-annual Report 2022
Item Closing balance Opening balance
Interest on long-term loans with interest
paid by installments and principal repaid 3,722,120 2,558,374
at maturity
Interest payable for short-term
660,363 184,923
borrowings
Interest for corporate bonds 32,258,065 92,258,065
Total 36,640,548 95,001,362
(2) Other payables
1) Listing other payables by nature of the payment
Unit: RMB
Item Closing balance Opening balance
Guarantee deposits received from
101,021,553 101,467,608
construction contractors
Accrued operating costs and expenses(i) 39,421,751 51,592,989
Payable for contracted labour costs 22,061,379 21,273,645
Temporary receipts 9,630,262 6,033,599
Guarantee for disabled 6,727,370 5,796,364
Others 6,364,073 8,274,910
Total 185,226,388 194,439,115
(i) This item mainly includes various expenses incurred but not yet obtained an invoice at the end of the period, including utilities,
professional service fees, travel expenses, etc.
27. Non-current liabilities due within one year
Unit: RMB
Item Closing balance Opening balance
Bonds payable due within one year 1,997,931,024
Long-term borrowings due within 1 year 335,498,431 466,098,352
Long-term payables due within one year 37,830,760 36,865,104
Lease liabilities due within one year 653,324 857,092
Total 2,371,913,539 503,820,548
28. Other current liabilities
Unit: RMB
Item Closing balance Opening balance
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CSG Semi-annual Report 2022
Output tax to be transferred 47,430,142 39,799,309
Others 300,000 300,000
Total 47,730,142 40,099,309
29. Long-term borrowings
(1) Classification of long-term borrowings
Unit: RMB
Item Closing balance Opening balance
Guaranteed 1,916,136,468 779,059,824
Credit loan 1,245,000,000 690,000,000
Total 3,161,136,468 1,469,059,824
As at 30 June 2022, the interest of long-term borrowings varied from 2.95%-4.60% (31 December 2021: 4%-4.6%).
30. Bonds payable
(1) Bonds payable
Unit: RMB
Item Closing balance Opening balance
Bonds payable 1,996,587,330
Total 1,996,587,330
(2) Increase or decrease of bonds payable (excluding preferred shares, perpetual bonds and other financial instruments
classified as financial liabilities)
Unit: RMB
Issu Amortizat Curr
Fac Reclassified
e in Interest ion of ent Clos
e Issue Amount of Opening to non-current
ing
Name Term the accrued at premium repa liabilities due
val date issue balance bala
peri face value and yme within one
nce
ue year
od discount nt
2020-3-
20
24 to 3
CSG 100 2,000,000,000 1,996,587,330 60,000,000 1,343,694 1,997,931,024
2020-3- years
01
25
In March 2020, with the approval of China Securities Regulatory Commission, the company was approved to publicly issue 2020
corporate bonds (phase I) to qualified investors, with a face value of RMB 100, an issue amount of RMB 2 billion, a term of 3 years
(annual interest payment and principal repayment at maturity), and a coupon rate of 6%; The issuance date is from March 24, 2020 to
March 25, 2020, and the value date is March 25, 2020.
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CSG Semi-annual Report 2022
31.Lease liability
Unit: RMB
Item Closing balance Opening balance
Lease liability 220,138
Total 220,138
32.Long-term payables
Unit: RMB
Item Closing balance Opening balance
Long-term payables 149,062,955 168,258,062
Total 149,062,955 168,258,062
（1）Long-term payables by nature of payment
Unit: RMB
Item Closing balance Opening balance
Finance lease payable 149,062,955 168,258,062
33. Deferred income
Unit: RMB
Increase in current decrease in current
Item Opening balance Closing balance
period period
Government grants 564,129,128 3,000,000 71,815,510 495,313,618
Total 564,129,128 3,000,000 71,815,510 495,313,618
Projects involving government subsidies:
Unit: RMB
Account to other Related to
Increase in Closing
Item in debt Opening balance income in this assets or
current period balance
period income
Tianjin CSG Golden Sun Project Assets
40,217,551 1,687,446 38,530,105
(i) related
Dongguan CSG Golden Sun Assets
32,324,250 1,375,500 30,948,750
Project (ii) related
Hebei CSG Golden Sun Project Assets
33,000,000 1,375,000 31,625,000
(iii) related
Xianning CSG Golden Sun Assets
35,860,917 1,515,250 34,345,667
Project (iv) related
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CSG Semi-annual Report 2022
Account to other Related to
Increase in Closing
Item in debt Opening balance income in this assets or
current period balance
period income
Infrastructure compensation for Assets
23,462,746 2,020,769 21,441,977
Wujiang CSG Glass Co., Ltd (v) related
Qingyuan Energy-saving project Assets
10,909,167 1,235,000 9,674,167
(vi) related
Yichang Silicon products project Assets
10,546,875 1,406,250 9,140,625
(vii) related
Yichang CSG silicon slice Assets
19,100,966 2,500,000 991,272 20,609,694
auxiliary project (viii) related
Sichuan energy-saving glass Assets
3,859,380 827,010 3,032,370
project (ix) related
Group coating film experimental Assets
1,500,000 187,500 1,312,500
project (x) related
Yichang high purity silicon Assets
2,417,619 151,589 2,266,030
material project (xi) related
Yichang semiconductor silicon Assets
2,866,666 66,667 2,799,999
material project (xii) related
Yichang CSG Display project Assets
40,565,357 1,333,906 39,231,451
(xiii) related
Xianning Photoelectric project Assets
6,240,000 134,162 6,105,838
(xiv) related
Shenzhen medical equipment Assets
7,178,000 582,000 6,596,000
subsidy project(xv) related
Hebei float emission reward Assets
9,355,414 366,879 8,988,535
(xvi) related
Income
Group talent fund project (xvi) 171,000,000 171,000,000
related
Zhaoqing energy saving industry Income
87,255,711 54,579,905 32,675,806
support fund project(xvii) related
Assets
Others 26,468,509 500,000 1,979,405 24,989,104
related
Total 564,129,128 3,000,000 71,815,510 495,313,618
(i) The allowance was granted by Tianjin Municipal Government. The allowance was used for establishing PV power station by
Tianjin Energy Conservation Company. The facilities belonged to Tianjin Energy Conservation Company. The allowance will be
credited to income statement in 20 years, the useful life of the PV power station.
(ii) The allowance was granted by Dongguan Municipal Government. The allowance was used for establishing PV power station
by Dongguan CSG Architectural Glass Co., Ltd. The facilities belonged to Dongguan CSG upon completion. The allowance will be
credited to income statement in 20 years, the useful life of the PV power station.
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CSG Semi-annual Report 2022
(iii) The allowance was granted by Langfang Municipal Government. The allowance was used for establishing PV power station by
Hebei CSG Glass Co., Ltd. ("Hebei CSG"). When the facilities were set up, they belonged to Hebei CSG. The allowance will be
credited to income statement in 20 years, the useful life of the PV power station.
(iv) The allowance was granted by Xianning Municipal Government. The allowance was used for establishing PV power station by
Xianning CSG Glass Co Ltd. The facilities belonged to Xianning CSG upon completion. The allowance will be credited to income
statement in 20 years, the useful life of the PV power station.
(v) The allowance was infrastructure compensation granted by Wujiang municipal government, and will be credited to income
statement in 15 years, the shortest operating period as committed by the Group.
(vi) The allowance was granted by Guangdong Province and which was a pilot project for strategic emerging industry clusters
development and was used to establish high performance ultra-thin electronic glass production lines by Qingyuan CSG. The
allowance will be credited to income statement in 10 years, the useful life of the production line.
(vii) The balance represented amounts granted to Yi Chang CSG polysilicon Materials Co., Ltd. by Yichang City Dongshan
Development Corporation under the provisions of the investment contract signed between the Group and the Municipal Government
of Yi Chang. The proceeds were designed for the construction of electricity transformer and the pipelines. Yichang polysilicon is
entitled to the ownership of the facilities, which will be amortised by 16 years according to the useful life of the converting station.
(viii) It represented the government supporting fund obtained by Yichang polysilicon from the acquiring of the assets and liabilities
of Crucible project of Yichang Hejing Photoelectric Ceramic Co., Ltd. The proceeds would be amortised and credited to income
statement by 16 years after related assets were put into use.
(ix) It represented the funds granted by Chengdu local government for energy glass project. It will be amortised and credited to
income statement in 15 years, in accordance with the minimum operating period committed by the Group.
(x) The allowance was granted by Shenzhen City Development and Reform Commission for the development of Group Coating
Film experimental project. The grant will be amortised and credited to income statement in the estimated useful life of the relevant
fixed assets.
(xi) It represented the funds granted by Hubei local government for inport discount complement and international corporation
special subsidy. The grant will be amortised and credited to income statement by 12 to 15 years.
(xii) It represented the special subsidy of Yichang National Regional Strategic Emerging Industry Development Pilot Project II,
which is used to complement Yichang CSG PolysSilicon “Hubei semiconductor silicon preparative technique project laboratory”.
The grant will be amortised and credited to income statement by 15 years.
(xiii) It represented the funds granted by Yichang Municipal Government for Yichang CSG Display Company's flat project
construction support funds and construction of coil coating three-line project. The grant will be amortised and credited to income
statement by 15 years.
(xiv) It represented the funds granted by Xianning Government of the Project supporting fund for photoconductive glass production
line,which is used to pay for Xianning CSG Glass Co. Ltd. constructing the project of photoelectric photoelectric optical glass
production line . After the completion of the production line, the ownership belongs to Xianning photoelectric. The allowance will be
credited to income statement in 8 years, the useful life of the production line.
(xv) The allowance was granted by Shenzhen Municipal Government. The allowance was used for the production line of epidemic
prevention materials for Shenzhen CSG Medical Technology Co., Ltd. The facilities belonged to Shenzhen CSG Medical Technology
Co., Ltd upon completion. The allowance will be credited to income statement with the useful life of the production line.
(xvi) The allowance was granted by Administrative Commission of Yongqing County Ecological Environment Bureau.and Hebei
CSG. is used to produce line drop emission transformation, and the grant will be amortised and credited to income statement in the
residual life of the relevant fixed assets.
(xvii) The allowance was granted by Administrative Commission of Yichang High-tech Industrial Development Zone. For senior
management personnel, engineering technical personnel and senior professional technical team who are working at Yichang or plane
to introduction, RMB171 million fund was set up, as a special fund for talent introduction and housing resettlement.
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(xviii) The allowance was granted by Administrative Commission of Guangdong Provincial Department of Finance is a
provincial industry to jointly establish financial support funds which is used to Z the development of enterprises, production and
operation, and other expenditure for Zhaoqing Energy Saving Company.
34. Share Capital
Unit: RMB
Changed in the report period(+,-)
Item Opening balance Transferred Closing balance
New issues Bonus issue Others Sub-total
from reserves
Total of
3,070,692,107 3,070,692,107
capital shares
35. Capital surplus
Unit: RMB
Item Opening balance Increased this term Decreased this term Closing balance
Capital premium (share
655,424,260 655,424,260
premium)
Other capital surplus -58,427,175 -58,427,175
Total 596,997,085 596,997,085
36. Other comprehensive income
Unit: RMB
Occurring in current period
After-tax After-tax
Opening Amount
Item incurred Less: income attribute to the attribute to Closing balance
balance
before income tax expense parent minority
tax
company shareholder
I. Other
comprehensive
income items which
can not be
reclassified to profit
or loss
II. Other
comprehensive
income items which 159,200,530 6,167,540 6,167,540 165,368,070
will be reclassified
to profit or loss
Differences on
-4,501,267 6,167,540 6,167,540 1,666,273
translation of
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foreign currency
financial statements
Finance incentives
for energy and
2,550,000 2,550,000
technical
transformation
Income from
conversion of self
use real estate and
161,151,797 161,151,797
land use right into
investment real
estate
Total of other
comprehensive 159,200,530 6,167,540 6,167,540 165,368,070
income
37. Special reserves
Unit: RMB
Item Opening balance Increased this term Decreased this term Closing balance
Safety production cost 7,296,397 4,853,948 10,297,642 1,852,703
Total 7,296,397 4,853,948 10,297,642 1,852,703
38. Surplus reserves
Unit: RMB
Item Beginning of term Increased this term Decreased this term End of term
Statutory surplus
1,017,034,942 1,017,034,942
reserve
Discretionary surplus
127,852,568 127,852,568
reserve
Total 1,144,887,510 1,144,887,510
39. Undistributed profits
Unit: RMB
Item The current period The same period of last year
Retained earnings at the end of the previous term
6,450,587,417 5,336,266,412
before adjustment
Retained earnings at the beginning of this term
6,450,587,417 5,336,266,412
after adjustment
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Add: net profits belonging to equity holders of the
1,001,174,398 1,352,517,465
Company
Less: Common stock dividends payable 614,138,421 307,069,211
Retained earnings in the end 6,837,623,394 6,381,714,666
40. Revenue and cost of sales
Unit: RMB
Occurred in current term Occurred in previous term
Item
Revenue Cost Revenue Cost
Revenue from main operations 6,421,792,209 4,599,587,540 6,549,257,796 4,117,364,759
Revenue from other operations 97,424,467 38,058,387 65,544,742 9,262,386
Total 6,519,216,676 4,637,645,927 6,614,802,538 4,126,627,145
41. Tax and surcharge
Unit: RMB
Item Occurred in current term Occurred in previous term
City maintenance and construction tax 15,694,124 20,244,886
Educational surcharge 13,036,606 17,918,346
Housing property tax 17,222,873 16,177,724
Land use rights 8,675,097 11,475,052
Stamp tax 3,840,095 3,873,467
Environmental protection tax 2,206,638 3,569,685
Others 605,189 706,894
Total 61,280,622 73,966,054
42. Sales expenses
Unit: RMB
Item Occurred in current term Occurred in previous term
Freight expenses 2,557,634 5,430,828
Employee benefits 92,473,703 82,609,837
Entertainment expenses 5,362,131 10,768,857
Business travel expenses 2,856,337 4,144,027
Vehicle use fee 4,488,510 3,994,805
Rental expenses 4,437,109 3,608,518
Depreciation expenses 396,591 386,840
Insurance premium 8,951,501 1,943,539
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Others 12,383,136 12,438,764
Total 133,906,652 125,326,015
43. Administrative expenses
Unit: RMB
Item Occurred in current term Occurred in previous term
Employee benefits 194,016,411 205,775,425
Depreciation expenses 29,261,329 30,558,014
Amortization of intangible assets 31,408,498 31,383,145
General office expenses 13,393,317 14,283,686
Labour union funds 9,792,599 9,143,124
Entertainment fees 8,507,539 8,583,533
Business travel expenses 2,194,600 3,293,171
Utility fees 2,955,260 2,661,302
Canteen fee 4,624,155 3,737,420
Vehicle use fee 3,213,151 2,818,991
Consulting advisers 3,470,195 7,243,698
Others 15,798,758 35,433,195
Total 318,635,812 354,914,704
44. Research and development expenses
Unit: RMB
Item Occurred in current term Occurred in previous term
Research and development expenses 265,877,930 224,886,882
Total 265,877,930 224,886,882
45. Finance expenses
Unit: RMB
Item Occurred in current term Occurred in previous term
Interest on borrowings 118,724,723 103,386,761
Less: Capitalised interest 26,740,119 1,416,342
Interest expenses 91,984,604 101,970,419
Less: Interest income 30,756,704 20,024,847
Exchange losses -210,284 3,871,530
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Others 1,779,736 1,182,897
Total 62,797,352 86,999,999
46. Other income
Unit: RMB
Source of other gains Occurred in current term Occurred in previous term
Government subsidy amortization 71,815,510 16,158,100
Industry support funds 1,500,000 1,782,700
Government incentive funds 17,203,284 11,750,470
Research grants 2,196,600 2,129,180
Others 6,587,158 4,733,354
Total 99,302,552 36,553,804
47. Investment income
Unit: RMB
Item Occurred in current term Occurred in previous term
Structural deposit income 14,478,503 3,075,863
Fixed deposit income 1,935,192 596,467
Total 16,413,695 3,672,330
48. Credit impairment losses
Unit: RMB
Item Occurred in current term Occurred in previous term
Losses on bad debts of other receivables -396,253 -110,593
Losses on bad debts of accounts receivable -1,095,969 -2,413,455
Total -1,492,222 -2,524,048
49. Asset impairment losses
Unit: RMB
Item Occurred in current term Occurred in previous term
1.Decline in the value of inventories 1,456
2.Impairment loss of fixed assets -26,753,082
Total 1,456 -26,753,082
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50. Asset disposal income
Unit: RMB
Source of income from assets disposal Occurred in current term Occurred in previous term
Gains and losses on disposal of non current assets 12,745,461 137,638
Total 12,745,461 137,638
51. Non-operating income
Unit: RMB
Amount of non-recurring gain
Item Occurred in current term Occurred in previous term and loss included in the report
period
Compensation income 45,951 2,504,317 45,951
Amounts unable to pay 3,861,020 2,998,725 3,861,020
Insurance claim 9,040,000 525,484 9,040,000
Others 2,186,007 1,523,272 2,186,007
Total 15,132,978 7,551,798 15,132,978
52. Non-operating expenses
Unit: RMB
Amount of non-recurring gain
Item Occurred in current term Occurred in previous term and loss included in the report
period
Donation expenditure 1,731,127 265,306 1,731,127
Compensation 599,074 599,074
Financial aid refund 74,583 15,028,336 74,583
Others 1,255,286 1,168,343 1,255,286
Total 3,660,070 16,461,985 3,660,070
53. Income tax expenses
(1) List of income tax expenses
Unit: RMB
Item Occurred in current term Occurred in previous term
Current income tax expenses 103,724,527 260,737,212
Deferred income tax expenses 65,200,997 -5,456,922
Total 168,925,524 255,280,290
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(2) Adjustment process of accounting profit and income tax expense
Unit: RMB
Item Occurred in current term
Total profit 1,177,516,231
Current income tax expense accounted by tax and relevant
181,726,624
regulations
Adjusting the effect of prior period income tax -3,872,718
Impact of non-deductible costs, expenses and losses 851,340
Impact on the use of deductible loss of deferred income tax
-5,210,915
assets not recognized in previous period
Influence deductible losses of unrecognized deferred income
129,547
tax assets
Impact of tax incentives -4,698,354
Income tax expenses 168,925,524
54. Other comprehensive income
See the note for details.
55. Items of the cash flow statement
(1) Cash received relating to other operating activities
Unit: RMB
Item Occurred in current term Occurred in previous term
Interest income 30,756,704 20,024,847
Government grant 30,487,042 113,114,204
Others 25,992,822 45,686,124
Total 87,236,568 178,825,175
(2) Cash paid relating to other operating activities
Unit: RMB
Item Occurred in current term Occurred in previous term
Freight expenses 3,928,266 7,337,545
General office expenses 19,162,389 21,928,236
Business travel expenses 7,379,731 9,925,103
Entertainment fees 16,277,475 20,105,592
Vehicle use fee 8,129,592 6,874,692
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Maintenance fee 13,668,199 10,878,076
Rental expenses 10,391,291 11,665,203
Insurance 22,824,587 7,889,601
Commission 1,610,434 1,182,897
Consulting fees 6,193,327 5,050,890
Others 94,303,923 143,938,799
Total 203,869,214 246,776,634
(3) Other cash received related to investment activities
Unit: RMB
Item Occurred in current term Occurred in previous term
Deposit 26,124,986
Income from trial production of
6,011,365
construction in progress
Total 32,136,351
(4) Other cash paid related to investment activities
Unit: RMB
Item Occurred in current term Occurred in previous term
Trial production expenditure in
6,911,853
construction
Investment Deposit and Margin 19,138,102
Total 19,138,102 6,911,853
(5) Other cash received related to financing activities
Unit: RMB
Item Occurred in current term Occurred in previous term
Collection of A/B share tax 206,753
Total 206,753
(6) Other cash paid related to financing activities
Unit: RMB
Item Occurred in current term Occurred in previous term
Repay financing leases 23,022,757
Withholding tax on A/B shares, etc. 1,142,255 390,507
Total 24,165,012 390,507
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56. Supplement information to the cash flow statement
(1) Supplement information to the cash flow statement
Unit: RMB
SupplementaryInfo. Amount of this term Amount of last term
1. Reconciliation from net profit to cash flows from operating
activities
Net profit 1,008,590,707 1,368,977,904
Add: Provisions for assets impairment -1,456 26,753,082
Credit impairment loss 1,492,222 2,524,048
Depreciation of fixed assets, depletion of oil and gas assets,
435,495,584 448,555,136
depreciation of productive biological assets
Depreciation of right-of-use assets 877,303 471,792
Amortization of intangible assets 31,408,498 31,383,145
Amortization of long-term prepaid expenses 289,845 163,410
Losses on disposal of fixed assets intangible assets and other
-12,745,461 -137,638
long-term assets (“- “for gains)
Finance expenses (“- “for gains) 91,984,604 101,970,419
Investment loss (“- “for gains) -16,413,695 -3,672,330
Decrease in deferred income tax assets (“- “for increase) 58,524,476 -8,575,782
Increase of deferred income tax liability (“- “for decrease) 6,676,521 3,118,860
Decrease of inventory (“- “for increase) -668,865,872 -236,251,630
Decrease of operational receivable items (“- “for increase) -544,965,419 -260,405,962
Increase of operational payable items (“- “for decrease) 505,601,316 224,537,331
Others 4,853,948 -1,166,410
Net cash flow generated by business operation 902,803,121 1,698,245,375
2. Net change of cash and cash equivalents
Balance of cash at the end of the period 2,863,965,769 1,647,672,831
Less: Initial balance of cash 2,756,477,572 2,124,028,196
Net increasing of cash and cash equivalents 107,488,197 -476,355,365
(2) Formation of cash and cash equivalents
Unit: RMB
Item Closing balance Opening balance
I. Cash 2,863,965,769 2,756,477,572
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CSG Semi-annual Report 2022
Incl: Cash on hand 130
Bank deposits that can be readily
2,523,965,640 2,453,477,573
drawn on demand
Other cash balances that can be
339,999,999 302,999,999
readily drawn on demand
II. Balance of cash and cash equivalents at the
2,863,965,769 2,756,477,572
end of the period
57. Assets with restricted ownership or use rights
Unit: RMB
Item Ending book value Reason for restriction
Monetary assets 6,076,772 Circulation of margin, etc. is restricted
Fixed assets 148,986,093 Financial leasing is restricted
Total 155,062,865
58. Foreign currency monetary items
(1) Foreign currency monetary items
Unit: RMB
Closing balance of foreign Closing
Item Exchange rate
currency balance convert to RMB
Cash at bank and on hand 56,375,983
Incl： USD 6,088,330 6.7114 40,861,221
EUR 890,687 7.0084 6,242,290
HKD 10,827,830 0.8552 9,259,960
AUD 797 4.6145 3,680
JPY 16,395 0.0491 805
SGD 1,666 4.8170 8,027
Accounts receivable 72,743,784
Incl： USD 9,720,348 6.7114 65,237,143
EUR 834,785 7.0084 5,850,510
HKD 1,936,542 0.8552 1,656,131
Accounts payable 38,601,456
Incl： USD 5,422,812 6.7114 36,394,660
EUR 188,656 7.0084 1,322,176
HKD 736,623 0.8552 629,960
JPY 3,363,707 0.0491 165,158
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Closing balance of foreign Closing
Item Exchange rate
currency balance convert to RMB
GBP 11,000 8.1365 89,502
59. Government subsidy
(1) Basic situation of government subsidies
Unit: RMB
Amount included in current
Type Amount Presentation item
profit and loss
Government subsidy
71,815,510 Other income 71,815,510
amortization
Other government subsidies 27,487,042 Other income 27,487,042
(2) Return of government subsidies
√Applicable □ Not applicable
Unit: RMB
Item Amount Reason
Shenzhen float high-strength
ultra-thin glass industrialization 74,583
research project
VIII. The changes of consolidation scope
1. Changes in scope of consolidation for other reasons
On February 14, 2022, the Group set up a subsidiary, Yichang CSG New Energy Material Technology Co.,
Ltd.(hereinafter referred to as " Yichang New Energy Materials Co., Ltd "). As of June 30, 2022, the Group had made a
monetary contribution of RMB 1 million.
IX. Equity in other entities
1. Equity in subsidiary
(1) Composition of the Group
Shareholding
Major business Place of Way of
Name of subsidiary Scope of business (%)
location registration acquisition
Direct Indirect
Chengdu CSG Chengdu, PRC Chengdu, PRC Development, production and sales of 75% 25% Establishment
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special glass
Sichuan CSG Energy Development, production and sales of
Chengdu, PRC Chengdu, PRC 75% 25% Split-off
Conservation special glass and processing of glass
Tianjin Energy Development, production and sales of
Tianjin, PRC Tianjin, PRC 75% 25% Establishment
Conservation special glass
Dongguan CSG
Dongguan, PRC Dongguan, PRC Intensive processing of glass 75% 25% Establishment
Engineering
Dongguan CSG Solar Dongguan, PRC Dongguan, PRC Production and sales of solar glass 75% 25% Establishment
Dongguan CSG Production and sales of hi-tech green
Dongguan, PRC Dongguan, PRC 100% Establishment
PV-tech battery and components
Yichang CSG Production and sales of high-purity silicon
Yichang, PRC Yichang, PRC 75% 25% Establishment
Polysilicon materials
Wujiang CSG
Wujiang, PRC Wujiang, PRC Intensive processing of glass 75% 25% Establishment
Engineering
Hebei CSG Yongqing, PRC Yongqing, PRC Production and sales of special glass 75% 25% Establishment
Wujiang CSG Wujiang, PRC Wujiang, PRC Production and sales of special glass 100% Establishment
China Southern Glass Hong Kong, Hong Kong,
Investment holding 100% Establishment
(Hong Kong) PRC PRC
Xianning CSG Xianning, PRC Xianning, PRC Production and sales of special glass 75% 25% Establishment
Xianning CSG
Xianning, PRC Xianning, PRC Intensive processing of glass 75% 25% Split-off
Energy-Saving
Qingyuan CSG Production and sales of ultra-thin
Qingyuan, PRC Qingyuan, PRC 100% Establishment
Energy-Saving electronic glass
Shenzhen CSG
Financial Leasing Co., Shenzhen, PRC Shenzhen, PRC Finance leasing, etc. 75% 25% Establishment
Ltd.
Jiangyou CSG Mining
Production and sales of silica and its
Development Co., Jiangyou, PRC Jiangyou, PRC 100% Establishment
by-products
Ltd.
Shenzhen CSG Production and sales of display component
Shenzhen, PRC Shenzhen, PRC 60.8% Acquisition
Display products
Zhaoqing
Zhaoqing, PRC Zhaoqing, PRC Production and sales of special glass 100% Establishment
Energy-SavingGlass
Zhaoqing Automobile
Zhaoqing, PRC Zhaoqing, PRC Production and sales of special glass 100% Establishment
Glass
Develop, manufacture and sell key
Anhui CSG New
Fengyang, PRC Fengyang, PRC materials or complete sets of equipment 100% Establishment
Energy Materials
for new energy power generation
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Anhui CSG New Quartzite mining, processing, purification,
Fengyang, PRC Fengyang, PRC 100% Establishment
Quartz material sales
Anhui Mining Fengyang, PRC Fengyang, PRC Mining of mineral resources 60% Establishment
Xi'an Energy-saving Xi'an, PRC Xi'an, PRC Production and sales of special glass 55% 45% Establishment
Guangxi new energy
Longgang, ,PRC Longgang, ,PRC Production and sales of special glass 75% 25% Establishment
materials Co., Ltd
(2)Important non-wholly owned subsidiary
Unit: RMB
Shareholding of Total profit or loss attributable to Dividends distributed to Minority interest
Subsidiaries minority minority shareholders for the year minority interests for the as at 30 June
shareholders ended 30 June 2022 year ended 30 June 2022 2022
Shenzhen CSG Display 39.2% 6,859,691 411,269,177
(3) Major financial information of important non-wholly owned subsidiaries
Unit: RMB
Name of Closing balance
Subsidiary Current assets Non-current assets Total assets Current liabilities Non-current liabilities Total liabilities
303,462,273 1,348,133,307 1,651,595,580 464,018,122 82,380,830 546,398,952
Shenzhen CSG Opening balance
Display Current assets Non-current assets Total assets Current liabilities Non-current liabilities Total liabilities
210,979,056 1,378,748,179 1,589,727,235 448,244,735 54,572,497 502,817,232
Unit: RMB
Occurred in current term Occurred in previous term
Cash flows Cash flows
Name of Total Total
from from
Subsidiary Revenue Net profit comprehensive Revenue Net profit comprehensive
operating operating
income income
activities activities
Shenzhen
276,320,544 21,191,648 21,191,648 20,948,584 378,092,939 46,313,955 46,313,955 57,269,209
CSG Display
X. Risk related to financial instrument
The Group's activities expose it to a variety of financial risks: market risk (primarily currency risk and interest rate risk),
credit risk and liquidity risk. The Group's overall risk management programme focuses on the unpredictability of
financial markets and seeks to minimise potential adverse effects on the Group's financial performance.
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(1) Market risk
(a) Foreign exchange risk
The Group’s major operational activities are carried out in Mainland China and a majority of the transactions are
denominated in RMB. However, some of the export business is settled in foreign currency. Besides, the Group is exposed
to foreign exchange risk arising from the recognized assets and liabilities, and future transactions denominated in foreign
currencies, primarily with respect to US dollars and HKD. The Group monitors the scale of foreign currency transactions,
foreign currency assets and liabilities, and adjusts settlement currency of export business, to furthest reduce the currency
risk.
As at 30 June 2022, the carrying amounts in RMB equivalent of the Group’s assets and liabilities denominated in foreign
currencies are summarized below:
30 June 2022
USD HKD Others Total
Financial assets denominated in foreign currency
Cash at bank and on hand 40,861,221 9,259,960 6,254,802 56,375,983
Receivables 65,237,143 1,656,131 5,850,510 72,743,784
Total 106,098,364 10,916,091 12,105,312 129,119,767
Financial liabilities denominated in foreign currency
Payables 36,394,660 629,960 1,576,836 38,601,456
Total 36,394,660 629,960 1,576,836 38,601,456
31 December 2021
USD HKD Others Total
Financial assets denominated in foreign currency
Cash at bank and on hand 26,509,188 2,379,817 115,374 29,004,379
Receivables 111,133,429 1,732,573 6,026,900 118,892,902
Total 137,642,617 4,112,390 6,142,274 147,897,281
Financial liabilities denominated in foreign currency
Payables 40,306,973 201,921 2,416,770 42,925,664
Total 40,306,973 201,921 2,416,770 42,925,664
As at 30 June 2022, if the currency had strengthened/weakened by 10% against the USD while all other variables had
been held constant, the Group’s net profit for the year would have been approximately RMB5,924,815 lower/higher (31
December 2021: approximately RMB 8,273,530 lower/higher) for various financial assets and liabilities denominated in
USD.
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Other changes in exchange rate had no significant influence on the Group's operating activities.
(b) Interest rate risk
The Group's interest rate risk arises from long-term interest bearing borrowings including long-term borrowings and
bonds payable. Financial liabilities issued at floating rates expose the Group to cash flow interest rate risk. Financial
liabilities issued at fixed rates expose the Group to fair value interest rate risk. The Group determines the relative
proportions of its fixed rate and floating rate contracts depending on the prevailing market conditions. As at 30 June 2022,
the Group’s long-term interest-bearing debt at variable rates and fixed rates as illustrated below:
Type 30 June 2022 31 December 2021
Debt at fixed rates 789,569,526 2,404,372,257
Debt at variable rates 2,371,566,942 1,061,274,897
Total 3,161,136,468 3,465,647,154
The Group continuously monitors the interest rate position of the Group. Increases in interest rates will increase the cost
of new borrowing and the interest expenses with respect to the Group’s outstanding floating rate borrowings, and
therefore could have a material adverse effect on the Group’s financial position. The Group makes adjustments timely
with reference to the latest market conditions, which includes increasing/decreasing long-term fixed rate debts at the
anticipation of increasing/decreasing interest rate.
(2) Credit risk
Credit risk is managed on the grouping basis. Credit risk mainly arises from cash at bank, notes receivable, accounts
receivable, other receivables.
The Group expects that there is no significant credit risk associated with cash at bank since they are mainly deposited at
state-owned banks and other medium or large size listed banks. Management does not expect that there will be any
significant losses from non-performance by these counterparties. Furthermore, as the Group’s bank acceptance notes
receivable are generally accepted by the state-owned banks and other large and medium listed banks, management
believes the credit risk should be limited.
In addition, the Group has policies to limit the credit exposure on accounts receivable, other receivables and trade
acceptance notes receivable. The Group assesses the credit quality of and sets credit limits on its customers by taking into
account their financial position, the availability of guarantee from third parties, their credit history and other factors such
as current market conditions. The credit history of the customers is regularly monitored by the Group. In respect of
customers with a poor credit history, the Group will use written payment reminders, or shorten or cancel credit periods, to
ensure the overall credit risk of the Group is limited to a controllable extent.
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(3) Liquidity risk
Cash flow forecasting is performed by each subsidiary of the Group and aggregated by the Group’s finance department in
its headquarters. The Group’s finance department at its headquarters monitors rolling forecasts of the Group's short-term
and long-term liquidity requirements to ensure it has sufficient cash reserve, while maintaining sufficient headroom on its
undrawn committed borrowing facilities from major financial institutions so that the Group does not breach borrowing
limits or covenants on any of its borrowing facilities to meet the short-term and long-term liquidity requirements.
The management intends to take the following measures to ensure that the group's liquidity risk is within a controllable
range.
(a) The Group will have steady cash inflows from operating activities;
(b) The Group will pay the debts that mature and finance the construction projects through the existing bank facilities;
(c) The Group will closely monitor the payment of construction expenditure in terms of payment time and amount.
The financial liabilities of the Group at the balance sheet date are analysed by their maturity date below at their
undiscounted contractual cash as follows:
30 June 2022
Within 1 year 1 to 2 years 2 to 5 years Over 5 years Total
Short-term borrowings 481,724,918 481,724,918
Notes payable 549,939,628 549,939,628
Accounts payable 1,796,932,531 1,796,932,531
Other payables 221,866,936 221,866,936
Other current liabilities 47,730,142 47,730,142
Non-current liabilities due within
2,468,442,587 2,468,442,587
one year
Long-term payables 149,062,955 149,062,955
Long-term borrowings 125,145,270 1,413,083,190 1,544,631,303 471,015,574 3,553,875,337
Total 5,691,782,012 1,562,146,145 1,544,631,303 471,015,574 9,269,575,034
31 December 2021
Over 5
Within 1 year 1 to 2 years 2 to 5 years years Total
Short-term borrowings 182,299,506 182,299,506
Notes payable 400,662,713 400,662,713
Accounts payable 1,428,851,312 1,428,851,312
Other payables 289,440,477 289,440,477
Other current liabilities 40,099,309 40,099,309
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Non-current liabilities due within
514,569,537 514,569,537
one year
Long-term payables 168,258,062 168,258,062
Long-term borrowings 60,580,998 374,241,583 889,057,539 363,125,181 1,687,005,301
Bonds payable 120,000,000 2,120,000,000 2,240,000,000
Total 3,036,503,852 2,662,499,645 889,057,539 363,125,181 6,951,186,217
XI. Disclosure of fair value
1. The ending fair value of assets and liabilities measured at fair value
Unit: RMB
Fair value at the end of the period
Level 1 Level 2 Level 3 Total
Financial assets measured at fair value with changes included in
current profit and loss
Structured deposits 1,209,000,000 1,209,000,000
Financial assets measured at fair value through other
comprehensive income
Receivables Financing 582,328,808 582,328,808
Investment property 383,084,500 383,084,500
Total 2,174,413,308 2,174,413,308
XII. Related party and related Transaction
1. Information of the parent company
The Company regards no entity as the parent company.
2. Information of the subsidiaries
The general information and other related information of the subsidiaries are set out in attached note.
3. Joint venture of the Company
The general information and other related information of joint ventures of the Company are set out in attached note.
4. Other related parties
Other related parties Relationship between other related parties and the enterprise
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Foresea Life Insurance Co., Ltd. The Company's largest shareholder
Shenzhen Jushenghua Co., Ltd. A related party of the Company's largest shareholder
Xinjiang Qianhai United Property Insurance Co., Ltd. A related party of the Company's largest shareholder
Suzhou Baoqi Logistics Co., Ltd. A related party of the Company's largest shareholder
Shenzhen Baoneng Automobile Sales Service Co., Ltd A related party of the Company's largest shareholder
5. Related party transactions
(1)Related transactions for the purchase and sale of goods, provision and receipt of services
Purchase of goods / acceptance of labor services
Unit: RMB
Amount incurred Whether the Amount incurred
Related party Related party transactions in the current transaction limit is in the previous
period exceeded period
Suzhou Baoqi Logistics Co., Ltd. Acceptance of labor services None 5,247,713
Foresea Life Insurance Co., Ltd. Purchase Purchase of life insurance 3,323,544 None 1,224,197
Shenzhen Baoneng Automobile Purchase of goods None
1,818,050
Sales Service Co., Ltd
Xinjiang Qianhai United Property Purchase auto insurance None
84,149
Insurance Co., Ltd.
Other related parties Purchase of goods 245,339 None 609,968
Total 3,568,883 None 8,984,077
Sales of goods / provision of labor services
Unit: RMB
Related party Related party transactions Amount incurred in the Amount incurred in the
current period previous period
Shenzhen Jushenghua Co., Ltd. Sales of goods 500
Other related parties Sales of goods 208,935 559,600
Total 208,935 560,100
（2）Related lease
The company as the lessee：
Unit: RMB
Rental costs for Variable lease
Name Types Interest expense of
simplified payments not Increased use right
of of Rent paid lease liabilities
short-term leases included in the assets
lessor leased undertaken
and low value asset measurement of
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assets leases(if applicable) lease liabilities (if
applicable)
Amount Amount Amount Amount Amount Amount Amount Amount Amount Amount
incurred incurred incurred incurred incurred incurred incurred incurred incurred incurred
in the in the in the in the in the in the in the in the in the in the
current previous current previous current previous current previous current previous
period period period period period period period period period period
Other
Leased
related 442,325 19,559
plant
parties
6. Accounts receivable and payable of related parties
(1) Receivables
Unit: RMB
Closing balance Opening balance
Related party
Book balance Bad debt provision Book balance Bad debt provision
Foresea Life Insurance Co., Ltd. 457,134 1,715
Other related parties 283,146 4,064 240,905 4,819
Total 740,280 4,064 242,620 4,819
(2) Payables
Related party Closing book balance Opening book balance
Suzhou Baoqi Logistics Co., Ltd. 518,280 2,731,013
Other related parties 134,025 133,408
Total 652,305 2,864,421
XIII. Share based payment
1.General situation of share based payment
□ Applicable √ Not applicable
2.Share based payment settled by equity
□ Applicable √ Not applicable
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3.Cash settled share based payment
□ Applicable √ Not applicable
XIV. Commitments and contingencies
1. Significant commitments
(1) Capital commitments
Capital expenditures contracted for by the Group at the balance sheet date but are not yet necessary to be recognized on
the balance sheet are as follows:
Unit: RMB
Item 30 June 2022 31 December 2021
Buildings, machinery and equipment 3,255,792,770 2,994,615,272
XV. Other important matters
1. Segment information
(1) Definition foundation of segment and accounting policy
The Group's business activities are categorised by product and service as follows:
Glass segment, engaged in production and sales of float glass and engineering glass and other building energy - saving
materials, the silica for the production thereof, etc.
Electronic glass and display segment is responsible for production and sales of display components and special
ultra-thin glass products, etc.
Solar energy segment, engaged in manufacturing and sales of polysilicon and solar battery and applications, etc.
The reportable segments of the Group are the business units that provide different products or service. Different
businesses require different technologies and marketing strategies. The Group, therefore, separately manages the
production and operation of each reportable segment and Estimates their operating results respectively, in order to make
decisions about resources to be allocated to these segments and to assess their performance.
Inter-segment transfer prices are measured by reference to selling prices to third parties.
The assets are allocated based on the operations of the segment and the physical location of the asset. The liabilities are
allocated based on the operations of the segment. Expenses indirectly attributable to each segment are allocated to the
segments based on the proportion of each segment’s revenue.
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(2)Financial information of segment
Unit: RMB
Electronic glass Solar energy and
Item Glass industry Unallocated Elimination Total
and display other industries
Revenue from
4,374,933,542 722,676,247 1,405,993,071 15,613,816 6,519,216,676
external customers
Inter-segment
53,836,884 87,239,522 27,648,076 214,893,714 -383,618,196
revenue
Interest income 1,783,726 281,292 308,648 28,383,038 30,756,704
Interest expenses 4,057,266 3,838,337 -135,478 84,224,479 91,984,604
Asset impairment
-1,456 -1,456
losses
Credit impairment
848,260 -320,455 879,333 85,084 1,492,222
loss
Depreciation and
amortization 284,583,466 114,919,758 64,926,060 3,641,946 468,071,230
expenses
Total profit 698,174,831 130,737,688 333,914,370 14,689,342 1,177,516,231
Income tax expenses 99,050,153 18,781,190 52,257,720 -1,163,539 168,925,524
Net profit 599,124,678 111,956,498 281,656,650 15,852,881 1,008,590,707
Total assets 11,258,772,055 3,727,213,216 3,285,363,409 4,199,829,096 22,471,177,776
Total liabilities 4,895,321,766 641,350,698 584,360,531 4,088,494,414 10,209,527,409
Increase in non
1,426,159,873 69,360,125 132,889,883 3,450,028 1,631,859,909
current assets
(3) Other statement
The Group’s revenue from external customers domestically and in foreign countries or geographical areas, and the total
non-current assets other than financial assets and deferred tax assets located domestically and in foreign countries or
geographical areas are as follows:
Revenue from external customers Jan.-Jun. 2022 Jan.-Jun. 2021
Mainland 6,019,026,588 5,993,997,205
Overseas 500,190,088 620,805,333
Total 6,519,216,676 6,614,802,538
Total non-current assets 30 June 2022 31 December 2021
Mainland 14,103,009,578 12,982,067,078
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CSG Semi-annual Report 2022
Hong Kong 12,376,080 12,403,499
Total 14,115,385,658 12,994,470,577
XVI. Notes to Financial Statements of the Parent Company
1.Accounts receivable
(1) Classified disclosure of accounts receivable
Unit: RMB
Ending book balance Beginning book balance
Book balance Bad debt provision Book balance Bad debt provision
Category book amoun amount Accrual book
amount of propor amount of Accrual propo
value t of of proporti value
money tion money proportion rtion
money money on
Accounts
receivable
for which
bad debt
reserves 2,037,007 100% 40,740 2% 1,996,267
are
withdrawn
by
portfolio
Total 2,037,007 100% 40,740 2% 1,996,267
Provision for bad debts by portfolio：
Unit: RMB
Ending book balance
Name
Book balance Bad debt provision Accrual proportion
Portfolio 1 2,037,007 40,740 2%
Total 2,037,007 40,740
Disclosed by aging
Unit: RMB
Aging Ending book balance
Within 1 year (including 1 year) 2,037,007
Total 2,037,007
(2)Bad debt reserves withdrawn, recovered or reversed in the current period
Provision for bad debts in the current period：
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Unit: RMB
Amount of change in the current period
Beginning book
Category Collect or Ending balance
balance Provision Write off Others
reversal
Bad debt
reserves of
40,740 40,740
accounts
receivable
Total 40,740 40,740
(3)Top 5 of the closing balance of the accounts receivable collated according to the arrears party
Unit: RMB
Proportion in total closing
Ending balance of accounts Ending balance of bad debt
Unit name balance of accounts
receivable provision
receivable
Total accounts receivable of
2,037,007 100% 40,740
the top 5 in balance
Total 2,037,007 100%
2. Other receivables
Unit: RMB
Item Ending balance Book balance
Dividends receivable 250,000,000 250,000,000
Other receivables 2,374,297,723 2,649,091,405
Total 2,624,297,723 2,899,091,405
(1) Dividends receivable
1）Classification of dividends receivable
Unit: RMB
Item (or investee) Closing balance Opening balance
Dividends receivable from subsidiaries 250,000,000 250,000,000
Total 250,000,000 250,000,000
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(2)Other receivables
1) Other accounts receivable classified by the nature of accounts
Unit: RMB
Nature of accounts Ending book balance Beginning book balance
Accounts receivable of related party 2,250,430,875 2,526,427,812
Others 175,252,620 174,005,021
Total 2,425,683,495 2,700,432,833
2）Withdrawal of bad debt provision
Unit: RMB
Phase I Phase II Phase III
Expected credit loss Expected credit loss
Expected credit for the entire for the entire
Bad debt provision Total
losses in the next 12 duration (no credit duration (credit
months impairment impairment
occurred) occurred)
Balance on1 January 2022 41,428 51,300,000 51,341,428
Balance on1 January 2022 in
current period
Provision for this period 44,344 44,344
Balance on 30 June 2022 85,772 51,300,000 51,385,772
3）Other receivables disclosed by aging
Unit: RMB
Aging Ending balance
Within 1 year (including 1 year) 2,253,443,341
1 to 2 years 1,036,498
2 to 3 years 98,190
More than 3 years 171,105,466
3 to 4 years 75,371
More than 5 years 171,030,095
Total 2,425,683,495
4) Provision for bad debts accrued, recovered or reversed in the current period
Provision for bad debts:
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CSG Semi-annual Report 2022
Unit: RMB
Opening Amount of change in the current period
Category Closing balance
balance Provision Collect or reversal Write-off Others
Provision for bad
51,341,428 44,344 51,385,772
debts by portfolio
Total 51,341,428 44,344 51,385,772
5）Top 5 of the closing balance of the other accounts receivable collated according to the arrears party
Unit: RMB
Proportion of the Closing
Nature of Closing total year end balance balance of
Name ofthecompany Aging
accounts balance of the accounts bad debt
receivable (%) provision
Dongguan CSG PV-tech Subsidiary 569,768,167 Within 1 year 23%
Qingyuan CSG Energy-saving Subsidiary 342,364,169 Within 1 year 14%
Shenzhen CSG Display Subsidiary 334,548,092 Within 1 year 14%
Xianning CSG Photoelectric Subsidiary 251,068,779 Within 1 year 10%
China Southern Glass (Hong Kong) Subsidiary 240,438,085 Within 1 year 10%
Total 1,738,187,292 71%
3. Long-term equity investment
Unit: RMB
Closing balance Opening balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Investment in
6,914,675,709 15,000,000 6,899,675,709 6,277,391,694 15,000,000 6,262,391,694
subsidiaries
Total 6,914,675,709 15,000,000 6,899,675,709 6,277,391,694 15,000,000 6,262,391,694
(1)Investment in subsidiaries
Unit: RMB
Increase and decrease in the current period Closing
Opening Closing balance of
Provision
Invested company balance Additional Reducing balance provision
for Others
(book value) investment investment (book value) for
impairment
impairment
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Chengdu CSG Glass Co., Ltd. 151,397,763 151,397,763
Sichuan CSG Energy Conservation 119,256,949 119,256,949
Tianjin Energy Conservation Glass Co.,
247,833,327 247,833,327
Ltd.
Dongguan CSG Architectural Glass Co.,
198,276,242 198,276,242
Ltd.
Dongguan CSG Solar Glass Co., Ltd. 355,120,247 355,120,247
Yichang CSG Polysilicon Co., Ltd. 640,856,170 269,104,000 909,960,170
Wujiang CSG North-east Architectural
254,401,190 254,401,190
Glass Co., Ltd.
Hebei CSG Glass Co., Ltd. 266,189,705 266,189,705
China Southern Glass (Hong Kong)
87,767,304 87,767,304
Limited
Wujiang CSG Glass Co., Ltd. 567,645,430 567,645,430
Jiangyou CSG Mining Development Co.,
102,415,096 102,415,096
Ltd.
Xianning CSG Glass Co., Ltd. 181,116,277 181,116,277
Xianning CSG Energy Conservation
165,452,035 165,452,035
Glass Co., Ltd.
Qingyuan CSG Energy Saving New
885,273,105 885,273,105
Materials Co.,Ltd.
Shenzhen CSG Financial Leasing Co.,
133,500,000 133,500,000
Ltd.
Shenzhen Nanbo Display Technology
550,765,474 550,765,474
Co., Ltd.
Zhaoqing CSG Energy-Saving Glass Co.,
150,000,000 150,000,000
Ltd.
Zhaoqing CSG Automobile Glass Co.,
58,121,000 12,030,015 70,151,015
Ltd.
Dongguan CSG PV-tech Co., Ltd. 382,112,183 382,112,183
Anhui CSG New Energy Materials 455,000,000 255,000,000 710,000,000
Anhui CSG New Quartz material 37,000,000 38,000,000 75,000,000
Shenzhen CSG Medical 20,000,000 20,000,000
Anhui CSG Silicon Valley Mingdu Co.,
3,000,000 3,000,000
Ltd.
Xi'an CSG Energy Saving Co., Ltd. 1,000,000 21,150,000 22,150,000
Guangxi CSG New Energy Materials 1,000,000 17,000,000 18,000,000
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CSG Semi-annual Report 2022
Co., Ltd
CSG (Suzhou) Enterprise Headquarters
9,000,000 21,000,000 30,000,000
Management Co., Ltd
Yichang CSG New Energy Materials Co.,
1,000,000 1,000,000
Ltd
Hefei CSG Energy Saving Co., Ltd 3,000,000 3,000,000
Others 238,892,197 238,892,197 15,000,000
Total 6,262,391,694 637,284,015 6,899,675,709 15,000,000
4. Operating income and operating costs
Unit: RMB
Occurred in this term Occurred in previous term
Item
Income Costs Income Costs
Main business 15,479,200 15,015,892
Other business 214,719,212 42,342,857
Total 230,198,412 15,015,892 42,342,857
5.Investment income
Unit: RMB
Item Occurred in this term Occurred in previous term
Long-term equity investment accounted by cost method 648,961,128 715,020,699
Investment income of trading financial assets during the holding period 14,478,503 2,858,476
Fixed deposit income 1,935,192 596,467
Total 665,374,823 718,475,642
XVII.Supplementary Information
1. Items and amounts of extraordinary profit (gains)/loss
√Applicable □Not applicable
Unit: RMB
Item Amount Note
Gains/losses from the disposal of non-current asset (including the write-off that accrued
12,745,461
for impairment of assets)
Governmental subsidy reckoned into current gains/losses (not including the subsidy
enjoyed in quota or ration according to national standards, which are closely relevant to 97,547,070
enterprise’s business)
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CSG Semi-annual Report 2022
In addition to the effective hedging business related to the normal operation of the
company, gains and losses from changes in fair value arising from the holding of tradable
financial assets and tradable financial liabilities, and the acquisition of tradable financial 16,413,695
assets and available-for-sale financial assets from disposal of tradable financial assets
investment income
Reversal of impairment provision for receivables subject to independent impairment test 1,409,310
Other non-operating income and expenditure except for the aforementioned items 11,472,908
Less: Impact on income tax 23,294,919
Impact on minority shareholders’ equity (post-tax) 2,713,947
Total 113,579,578 --
Details of other profit and loss items that meet the definition of non recurring profit and loss：
□Applicable √Not applicable
The Company has no specific circumstances of other profit and loss items that meet the definition of non-recurring
profit and loss.
Explanation on defining the non-recurring profit and loss items listed in the "Explanatory Announcement No. 1 on
Information Disclosure of Companies Offering Securities to the Public - Non-recurring Profit and Loss" as recurring
profit and loss items
□Applicable √Not applicable
2. Return on net assets and earnings per share
The weighted Earnings per share
Profit in the report period average net Basic earnings per Diluted earnings per
assets ratio share (RMB/share) share (RMB/share)
Net profit attributable to ordinary shareholders of the Company 8.61% 0.33 0.33
Net profit attributable to ordinary shareholders of the Company after
7.64% 0.29 0.29
deducting non-recurring gains and losses
3. Difference of accounting data under domestic and overseas accounting standards
(1) Differences of the net profit and net assets disclosed in financial report prepared under international and
Chinese accounting standards
□ Applicable √ Not applicable
(2) Difference of the net profit and net assets disclosed in financial report prepared under overseas and Chinese
accounting standards
□ Applicable √ Not applicable
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(3)Explanation of the reasons for the difference of accounting data under the domestic and foreign accounting
standards. If the data audited by the overseas audit institution is adjusted for the difference, the name of the
overseas institution shall be indicated
□ Applicable √ Not applicable
Board of Directors of
CSG Holding Co., Ltd.
31 August 2022
157
