CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2017
Financial Report of Semi-annual Report 2017
(I) Auditors’ Report
Whether the Semi-annual Report has been audited or not
□ Yes √ No
The Semi-annual Report of the Company 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.
Unit: RMB
Item Ending balance Beginning balance
Current asset:
Monetary capital 934,235,201 586,803,505
Settlement provision
Outgoing call loan
Financial assets measured at fair value with variations
accounted into current income account
Derivative financial assets
Notes receivable 536,557,203 456,347,237
Account receivable 679,943,915 627,985,983
Prepayment 162,247,377 95,733,132
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance contracts receivable
Interest receivable
Dividend receivable
Other account receivable 33,559,090 33,229,149
Repurchasing of financial assets
Inventories 630,593,776 477,780,925
Assets held for sales
Non-current asset due in 1 year
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2017
Other current asset 249,369,319 199,905,577
Total of current asset 3,226,505,881 2,477,785,508
Non-current assets
Loans and payment on other’s behalf disbursed
Available-for-sale financial asset
Expired investment in possess
Long-term receivable
Long-term share equity investment
Investment real estates
Fixed assets 11,773,502,135 11,457,972,991
Construction in process 1,259,425,371 1,362,096,377
Engineering goods
Fixed asset disposal
Production physical assets
Gas & petrol
Intangible assets 1,021,669,447 1,032,458,977
R&D expense 76,049,471 66,927,714
Goodwill 397,392,156 397,392,156
Long-term amortizable expenses 9,693,102 975,660
Differed income tax asset 84,697,210 96,451,854
Other non-current asset 81,346,840 87,174,393
Total of non-current assets 14,703,775,732 14,501,450,122
Total of assets 17,930,281,613 16,979,235,630
Current liabilities
Short-term loans 2,399,694,000 4,017,869,662
Loan from Central Bank
Deposit received and hold for others
Call loan received
Financial liabilities measured at fair value with
variations accounted into
Derivative financial liabilities
Notes payable 114,500,000 20,000,000
Account payable 1,382,500,478 1,169,869,370
Prepayment received 201,549,137 142,330,979
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2017
Selling of repurchased financial assets
Fees and commissions receivable
Employees’ wage payable 173,186,321 193,372,239
Tax payable 87,961,271 115,592,616
Interest payable 98,184,696 78,225,904
Dividend payable 207,533,556
Other account payable 844,823,887 188,321,450
Reinsurance fee payable
Insurance contract provision
Entrusted trading of securities
Entrusted selling of securities
Liabilities held for sales
Non-current liability due in 1 year 1,101,203,702 1,029,340,000
Other current liability 300,000 300,000
Total of current liability 6,611,437,048 6,955,222,220
Non-current liabilities
Long-term borrowings 1,624,000,000 1,438,660,000
Bond payable
Including：preferred stock
Sustainable debt
Long-term payable 838,871,670
Long-term payable employees’s remuneration
Special payable
Anticipated liabilities
Differed income 420,880,301 422,993,254
Differed income tax liability 24,164,221 29,749,137
Other non-recurring liabilities
Total of non-current liabilities 2,907,916,192 1,891,402,391
Total of liability 9,519,353,240 8,846,624,611
Owners’ equity
Share capital 2,075,335,560 2,075,335,560
Other equity instruments
Including：preferred stock
Sustainable debt
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2017
Capital reserves 1,349,953,977 1,260,702,197
Less: Shares in stock
Other comprehensive income 3,577,707 4,653,971
Special reserves 3,233,660 5,843,473
Surplus reserves 888,850,230 888,850,230
Common risk provision
Undistributed profit 3,762,408,180 3,576,949,573
Total of owner’s equity belong to the parent company 8,083,359,314 7,812,335,004
Minor shareholders’ equity 327,569,059 320,276,015
Total of owners’ equity 8,410,928,373 8,132,611,019
Total of liability and owners’ equity 17,930,281,613 16,979,235,630
Legal Representative：Chen Lin CFO：Pan Yonghong Manager of the financial department：Wang Wenxin
2. Balance Sheet of the Parent Company
Unit: RMB
Item Ending balance Beginning balance
Current asset:
Monetary capital 559,161,574 302,841,481
Financial assets measured at fair value with variations
accounted into current income account
Derivative financial assets
Notes receivable
Account receivable
Prepayment 1,750,000 16,880
Interest receivable
Dividend receivable
Other account receivable 3,416,514,546 3,863,121,029
Inventories
Assets held for sales
Non-current asset due in 1 year
Other current asset
Total of current asset 3,977,426,120 4,165,979,390
Non-current assets
Available-for-sale financial asset
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2017
Expired investment in possess
Long-term receivable 2,003,645,000 2,003,645,000
Long-term share equity investment 4,790,440,632 4,790,440,632
Investment real estates
Fixed assets 23,798,714 26,073,848
Construction in process
Engineering goods
Fixed asset disposal
Production physical assets
Gas & petrol
Intangible assets 1,167,664 1,393,454
R&D expense
Goodwill
Long-term amortizable expenses
Differed income tax asset
Other non-current asset
Total of non-current assets 6,819,052,010 6,821,552,934
Total of assets 10,796,478,130 10,987,532,324
Current liabilities
Short-term loans 1,690,000,000 3,495,163,044
Financial liabilities measured at fair value with
variations accounted into
Derivative financial liabilities
Notes payable
Account payable 34,528 317,874
Prepayment received
Employees’ wage payable 42,237,698 18,380,010
Tax payable 1,019,727 1,804,568
Interest payable 8,767,301 3,794,646
Dividend payable 207,533,556
Other account payable 1,151,107,561 240,593,894
Liabilities held for sales
Non-current liability due in 1 year 1,000,000,000 1,000,000,000
Other current liability
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2017
Total of current liability 4,100,700,371 4,760,054,036
Non-current liabilities
Long-term borrowings 1,380,000,000 1,380,000,000
Bond payable
Including：preferred stock
Sustainable debt
Long-term payable 649,823,518
Long-term payable employees’s remuneration
Special payable
Anticipated liabilities
Differed income 16,280,660 12,035,040
Differed income tax liability
Other non-recurring liabilities
Total of non-current liabilities 2,046,104,178 1,392,035,040
Total of liability 6,146,804,549 6,152,089,076
Owners’ equity
Share capital 2,075,335,560 2,075,335,560
Other equity instruments
Including：preferred stock
Sustainable debt
Capital reserves 1,494,670,923 1,405,529,511
Less: Shares in stock
Other comprehensive income
Special reserves
Surplus reserves 903,395,590 903,395,590
Undistributed profit 176,271,508 451,182,587
Total of owners’ equity 4,649,673,581 4,835,443,248
Total of liability and owners’ equity 10,796,478,130 10,987,532,324
3. Consolidated Income Statement
Unit: RMB
Item Balance of this period Balance of last period
I. Total revenue 4,944,337,861 4,228,165,642
Incl. Business income 4,944,337,861 4,228,165,642
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2017
Interest income
Insurance fee earned
Fee and commission received
II. Total business cost 4,502,642,030 3,720,133,533
Incl. Business cost 3,737,514,462 3,076,818,503
Interest expense
Fee and commission paid
Insurance discharge payment
Net claim amount paid
Net insurance policy reserves provided
Insurance policy dividend paid
Reinsurance expenses
Tax and surcharge 61,745,775 33,485,783
Sales expense 156,344,731 128,564,831
Administrative expense 402,554,340 348,836,395
Financial expenses 143,374,027 133,353,393
Asset impairment loss 1,108,695 -925,372
Plus: gains from change of fair value (“-“for loss)
Investment gains (“-“ for loss) -14,264,359
Incl. Investment gains from affiliates -14,264,359
Exchange gains (“-“ for loss)
Other gains 23,674,234
III. Operational profit (“-“ for loss) 465,370,065 493,767,750
Plus: non-operational income 16,029,596 50,038,364
Incl. Income from disposal of non-current assets 57,734 248,642
Less: non-operational expenditure 732,592 661,628
Incl. Loss from disposal of non-current assets 129,490 19,984
IV. Gross profit (“-“ for loss) 480,667,069 543,144,486
Less: Income tax expenses 80,453,021 77,843,164
V. Net profit (“-“ for net loss) 400,214,048 465,301,322
Net profit attributable to the owners of parent
392,992,163 466,883,254
company
Minor shareholders’ equity 7,221,885 -1,581,932
VI. Net amount of other gains after tax -1,076,264 508,053
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2017
Net amount of other gains after tax attributable to
-1,076,264 508,053
owners of parent company
(I) Other comprehensive income that will not be
reclassified into gains/losses afterward
1. Change of net liability or asset of beneficiary plan
from recalculating
2. The share of comprehensive income in invested
entities under equity method which can not be
reclassified into profit or loss
(II) Other comprehensive income items that will be
reclassified into gains/losses in the subsequent -1,076,264 508,053
accounting period
1. The share of comprehensive income in invested
entities under equity method which can be
reclassified into profit or loss afterward
2.Gains and losses from changes in fair value
available for sale financial assets
3.Held-to-maturity investments reclassified to gains
and losses of available for sale financial assets
4.The effective portion of cash flow hedges and losses
5.Translation differences in currency financial
-1,076,264 508,053
statements
6.Other
Net of profit of other comprehensive income
attributable to Minority shareholders’ equity
VII. Total of misc. incomes 399,137,784 465,809,375
Total of misc. incomes attributable to the owners of
391,915,899 467,391,307
the parent company
Total misc gains attributable to the minor
7,221,885 -1,581,932
shareholders
VIII. Earnings per share:
(I) Basic earnings per share 0.19 0.22
(II) Diluted earnings per share 0.19 0.22
Legal Representative：Chen Lin CFO：Pan Yonghong Manager of the financial department：Wang Wenxin
4. Income Statement of the Parent Co.
Unit: RMB
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2017
Items Balance of this period Balance of last period
I. Revenue 27,295,266 1,077,394
Less:business cost 0 60,334
Tax and surcharge 5,136,944 94,720
Sales expense
Administrative expense 70,540,224 61,812,557
Financial expenses 19,800,295 11,263,822
Asset impairment loss 7,706 -1,770,242
Plus: gains from change of fair value (“-“for loss)
Investment gains (“-“ for loss) 399,280,607
Incl. Investment gains from affiliates 9,850,045
Other gains 18,000
II. Operational profit (“-“ for loss) -68,171,903 328,896,810
Plus: non-operational income 794,380 766,180
Incl. Income from disposal of non-current assets 1,800
Less: non-operational expenditure
Incl. Loss from disposal of non-current assets
III. Gross profit (“-“ for loss) -67,377,523 329,662,990
Less: Income tax expenses 0 -45,852
IV. Net profit (“-“ for net loss) -67,377,523 329,708,842
V. Net amount of other gains after tax
(I) Other comprehensive income that will not be
reclassified into gains/losses afterward
1. Change of net liability or asset of beneficiary plan
from recalculating
2. The share of comprehensive income in invested
entities under equity method which can not be
reclassified into profit or loss
(II) Other comprehensive income items that will be
reclassified into gains/losses in the subsequent
accounting period
1. The share of comprehensive income in invested
entities under equity method which can be
reclassified into profit or loss afterward
2.Gains and losses from changes in fair value
available for sale financial assets
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2017
3.Held-to-maturity investments reclassified to gains
and losses of available for sale financial assets
4.The effective portion of cash flow hedges and losses
5.Translation differences in currency financial
statements
6.Other
VI. Total of misc. incomes -67,377,523 329,708,842
VII. Earnings per share:
(I) Basic earnings per share
(II) Diluted earnings per share
5. Consolidated Cash Flow Statement
Unit: RMB
Item Balance of this period Balance of last period
I. Net cash flow from business operation
Cash received from sales of products and providing of
5,472,732,654 4,822,965,397
services
Net increase of customer deposits and capital kept for
brother company
Net increase of loans from central bank
Net increase of inter-bank loans from other financial
bodies
Cash received against original insurance contract
Net cash received from reinsurance business
Net increase of client deposit and investment
Net increase of disposal of the financial assets
measured by fair value with the changes included in
the current gains and losses
Cash received as interest, processing fee, and
commission
Net increase of inter-bank fund received
Net increase of repurchasing business
Tax returned 7,273,335 35,363,638
Other cash received from business operation 68,210,702 46,108,936
Sub-total of cash inflow from business activities 5,548,216,691 4,904,437,971
Cash paid for purchasing of merchandise and services 3,278,955,888 2,769,544,694
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2017
Net increase of client trade and advance
Net increase of savings in central bank and brother
company
Cash paid for original contract claim
Cash paid for interest, processing fee and commission
Cash paid for policy dividend
Cash paid to staffs or paid for staffs 617,464,364 529,127,685
Taxes paid 380,644,776 336,130,323
Other cash paid for business activities 251,262,209 222,914,920
Sub-total of cash outflow from business activities 4,528,327,237 3,857,717,622
Cash flow generated by business operation, net 1,019,889,454 1,046,720,349
II. Cash flow generated by investing
Cash received from investment retrieving
Cash received as investment profit
Net cash retrieved from disposal of fixed assets,
44,820 617,985
intangible assets, and other long-term assets
Net cash received from disposal of subsidiaries or
other operational units
Other investment-related cash received 24,039,200 29,699,884
Sub-total of cash inflow due to investment activities 24,084,020 30,317,869
Cash paid for construction of fixed assets, intangible
731,954,148 472,503,623
assets and other long-term assets
Cash paid as investment 4,250,000
Net increase of loan against pledge
Net cash received from subsidiaries and other
507,974,099
operational units
Other cash paid for investment activities 31,475,182 21,764,586
Sub-total of cash outflow due to investment activities 763,429,330 1,006,492,308
Net cash flow generated by investment -739,345,310 -976,174,439
III. Cash flow generated by financing
Cash received as investment 5,500,000
Incl. Cash received as investment from minor
5,500,000
shareholders
Cash received as loans 1,452,919,750 4,443,422,252
Cash received from bond placing
Other financing-related cash received 1,666,591,530 100,725,978
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2017
Subtotal of cash inflow from financing activities 3,119,511,280 4,549,648,230
Cash to repay debts 2,924,757,768 3,988,397,915
Cash paid as dividend, profit, or interests 123,450,004 693,264,874
Incl. Dividend and profit paid by subsidiaries to
minor shareholders
Other cash paid for financing activities 3,451,507 109,125,965
Subtotal of cash outflow due to financing activities 3,051,659,279 4,790,788,754
Net cash flow generated by financing 67,852,001 -241,140,524
IV. Influence of exchange rate alternation on cash and
-912,613 559,892
cash equivalents
V. Net increase of cash and cash equivalents 347,483,532 -170,034,722
Plus: Balance of cash and cash equivalents at the
584,566,990 574,744,877
beginning of term
VI. Balance of cash and cash equivalents at the end of
932,050,522 404,710,155
term
6. Cash Flow Statement of the Parent Co.
Unit: RMB
Item Balance of this period Balance of last period
I. Net cash flow from business operation
Cash received from sales of products and providing of
services
Tax returned
Other cash received from business operation 4,843,988 2,616,039
Sub-total of cash inflow from business activities 4,843,988 2,616,039
Cash paid for purchasing of merchandise and services
Cash paid to staffs or paid for staffs 33,652,141 62,007,982
Taxes paid 6,095,316 39,306,033
Other cash paid for business activities 12,279,684 6,551,752
Sub-total of cash outflow from business activities 52,027,141 107,865,767
Cash flow generated by business operation, net -47,183,153 -105,249,728
II. Cash flow generated by investing
Cash received from investment retrieving
Cash received as investment profit 389,430,562
Net cash retrieved from disposal of fixed assets, 1,800
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2017
intangible assets, and other long-term assets
Net cash received from disposal of subsidiaries or
other operational units
Other investment-related cash received 5,000,000 3,000,000
Sub-total of cash inflow due to investment activities 5,000,000 392,432,362
Cash paid for construction of fixed assets, intangible
565,260 117,326
assets and other long-term assets
Cash paid as investment 175,755,000
Net cash received from subsidiaries and other
464,345,956
operational units
Other cash paid for investment activities
Sub-total of cash outflow due to investment activities 565,260 640,218,282
Net cash flow generated by investment 4,434,740 -247,785,920
III. Cash flow generated by financing
Cash received as investment
Cash received as loans 990,693,638 4,110,000,600
Cash received from bond placing
Other financing-related cash received 1,806,455,260 326,432,420
Subtotal of cash inflow from financing activities 2,797,148,898 4,436,433,020
Cash to repay debts 2,496,723,365 3,608,000,600
Cash paid as dividend, profit, or interests 2,213,425 662,199,041
Other cash paid for financing activities
Subtotal of cash outflow due to financing activities 2,498,936,790 4,270,199,641
Net cash flow generated by financing 298,212,108 166,233,379
IV. Influence of exchange rate alternation on cash and
855,016 -2,568,311
cash equivalents
V. Net increase of cash and cash equivalents 256,318,711 -189,370,580
Plus: Balance of cash and cash equivalents at the
301,637,933 394,606,753
beginning of term
VI. Balance of cash and cash equivalents at the end of
557,956,644 205,236,173
term
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2017
7. Statement of Change in Owners’ Equity (Consolidated)
Amount of the Current Term
RMB
Amount of the Current Term
Owners’ Equity Attributable to the Parent Company
Other equity instruments Minority
Items Other shareholders’ Total of owners’
Perpetua Less: Common
Capital Special Surplus Retained
Share capital Preferre l capital treasury comprehensi risk Total of equity
Others reserve reserves reserves profit
securitie stock ve income provision owners’ equity
d share
s
I. Balance at the end
of the previous 2,075,335,560 1,260,702,197 4,653,971 5,843,473 888,850,230 3,576,949,573 320,276,015 8,132,611,019
year
Plus: change of
accounting policy
Correction of errors in
previous periods
Business combination
under the same control
Others
II. Balance at the
beginning of current 2,075,335,560 1,260,702,197 4,653,971 5,843,473 888,850,230 3,576,949,573 320,276,015 8,132,611,019
year
III. Amount of change
89,251,780 -1,076,264 -2,609,813 185,458,607 7,293,044 278,317,354
in current term
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2017
(“-“ for decrease)
(I) Total amount of the
comprehensive -1,076,264 392,992,163 7,221,885 399,137,784
income
(II) Capital paid in and
89,251,780 71,159 89,322,939
reduced by owners
1. Common shares
invested by the
shareholders
2. Capital invested by
the owners of other
equity instruments
3. Amounts of
share-based payments
110,368 71,159 181,527
recognized in owners’
equity
4. Others 89,141,412 89,141,412
(III) Profit distribution -207,533,556 -207,533,556
1. Appropriations to
surplus reserves
2. Appropriations to
general risk
provisions
3. Appropriations to
owners (or -207,533,556 -207,533,556
shareholders)
4. Others
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2017
(IV) Internal
carry-forward of
owners’ equity
1. New increase of
capital (or share
capital ) from capital
public reserves
2. New increase of
capital (or share
capital) from surplus
reserves
3. Surplus reserves for
making up losses
4. Others
(V) Specific reserve -2,609,813 -2,609,813
1. Withdrawn for the
3,922,869 3,922,869
period
2. Used in the period 6,532,682 6,532,682
(VI) Others
IV. Balance at the end
of this term 2,075,335,560 1,349,953,977 3,577,707 3,233,660 888,850,230 3,762,408,180 327,569,059 8,410,928,373
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2017
Amount of Last Year
Unit: RMB
Amount of the same period of last year
Owners’ Equity Attributable to the Parent Company
Minority
Other equity instruments Commo
Items Other shareholders’ Total of owners’
Less:
Preferr Perpetual Capital Special Surplus n risk
Share capital treasury comprehensi Retained profit Total of equity
ed capital Others reserve reserves reserves provisio
stock ve income owners’ equity
share securities n
I. Balance at the end
of the previous 2,075,335,560 1,261,391,272 2,967,772 15,437,498 859,122,330 3,431,556,565 3,080,480 7,648,891,477
year
Plus: change of
accounting policy
Correction of errors in
previous periods
Business combination
under the same control
Others
II. Balance at the
beginning of current 2,075,335,560 1,261,391,272 2,967,772 15,437,498 859,122,330 3,431,556,565 3,080,480 7,648,891,477
year
III. Amount of change
in current term -689,075 1,686,199 -9,594,025 29,727,900 145,393,008 317,195,535 483,719,542
(“-“ for decrease)
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2017
(I) Total amount of the
comprehensive 1,686,199 797,721,576 6,504,948 805,912,723
income
(II) Capital paid in and
402,262 313,771,067 314,173,329
reduced by owners
1. Common shares
invested by the 313,628,750 313,628,750
shareholders
2. Capital invested by
the owners of other
equity instruments
3. Amounts of
share-based payments
402,262 142,317 544,579
recognized in owners’
equity
4. Others
(III) Profit distribution 29,727,900 -652,328,568 -622,600,668
1. Appropriations to
29,727,900 -29,727,900
surplus reserves
2. Appropriations to
general risk
provisions
3. Appropriations to
owners (or -622,600,668 -622,600,668
shareholders)
4. Others
(IV) Internal
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2017
carry-forward of
owners’ equity
1. New increase of
capital (or share
capital ) from capital
public reserves
2. New increase of
capital (or share
capital) from surplus
reserves
3. Surplus reserves for
making up losses
4. Others
(V) Specific reserve -9,594,025 -9,594,025
1. Withdrawn for the
6,930,650 6,930,650
period
2. Used in the period 16,524,675 16,524,675
(VI) Others -1,091,337 -3,080,480 -4,171,817
IV. Balance at the end
of this term 2,075,335,560 1,260,702,197 4,653,971 5,843,473 888,850,230 3,576,949,573 320,276,015 8,132,611,019
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2017
8. Statement of Change in Owners’ Equity (Parent Co.)
Amount of the Current Term
Unit: RMB
Amount of the Current Term
Other equity instruments
Less: Other
Items Capital Special Surplus Retained Total of owners’
Perpetual
Share capital Preferred treasury comprehensive
capital Others reserve reserves reserves profit equity
share stock income
securities
I. Balance at the end of the previous 2,075,335,560 1,405,529,511 903,395,590 451,182,587 4,835,443,248
Plus: change of accounting policy
Correction of errors in previous
periods
Others
II. Balance at the beginning of current
2,075,335,560 1,405,529,511 903,395,590 451,182,587 4,835,443,248
year
III. Amount of change in current term
89,141,412 -274,911,079 -185,769,667
(“-“ for decrease)
(I) Total amount of the comprehensive
-67,377,523 -67,377,523
income
(II) Capital paid in and reduced by
89,141,412 89,141,412
owners
1. Common shares invested by the
shareholders
2. Capital invested by the owners of
other equity instruments
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2017
3. Amounts of share-based payments
recognized in owners’ equity
4. Others 89,141,412 89,141,412
(III) Profit distribution -207,533,556 -207,533,556
1. Appropriations to surplus reserves
2. Appropriations to general risk -207,533,556 -207,533,556
3. Others
(IV) Internal carry-forward of owners’
equity
1. New increase of capital (or share
capital ) from capital public reserves
2. New increase of capital (or share
capital) from surplus reserves
3. Surplus reserves for making up
losses
4. Others
(V) Specific reserve
1. Withdrawn for the period
2. Used in the period
(VI) Others
IV. Balance at the end of this term
2,075,335,560 1,494,670,923 903,395,590 176,271,508 4,649,673,581
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2017
Amount of Last Year
Uniit: RMB
Amount of the same period of last year
Other equity instruments
Less: Other
Items Capital Special Surplus Total of owners’
Perpetual
Share capital Preferred treasury comprehensive Retained profit
capital Others reserve reserves reserves equity
share stock income
securities
I. Balance at the end of the previous 2,075,335,560 1,404,803,407 873,667,690 806,232,151 5,160,038,808
Plus: change of accounting policy
Correction of errors in previous
periods
Others
II. Balance at the beginning of current
2,075,335,560 1,404,803,407 873,667,690 806,232,151 5,160,038,808
year
III. Amount of change in current term
726,104 29,727,900 -355,049,564 -324,595,560
(“-“ for decrease)
(I) Total amount of the comprehensive
297,279,004 297,279,004
income
(II) Capital paid in and reduced by
owners
1. Common shares invested by the
shareholders
2. Capital invested by the owners of
other equity instruments
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2017
3. Amounts of share-based payments
recognized in owners’ equity
4. Others
(III) Profit distribution 29,727,900 -652,328,568 -622,600,668
1. Appropriations to surplus reserves 29,727,900 -29,727,900
2. Appropriations to general risk -622,600,668 -622,600,668
3. Others
(IV) Internal carry-forward of owners’
equity
1. New increase of capital (or share
capital ) from capital public reserves
2. New increase of capital (or share
capital) from surplus reserves
3. Surplus reserves for making up
losses
4. Others
(V) Specific reserve
1. Withdrawn for the period
2. Used in the period
(VI) Others 726,104 726,104
IV. Balance at the end of this term
2,075,335,560 1,405,529,511 903,395,590 451,182,587 4,835,443,248
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2017
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 headquarter locates in Guangdong Province of the
People's Republic of China. The Company issued RMB-dominated ordinary shares and foreign shares publicly in October 1991
and January 1992 respectively, and listed on Shenzhen Stock Exchange on February 1992. On 31 December 2015, the
registered capital was RMB 2,075,335,560, 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
glass and energy meterials with glass as the medium, the manufacture and sales of polysilicon and solar module, the
construction and operation of photovoltaic plant and the manufacture and sales of electronic glass and display.
The financial statements were authorised for issue by the board of directors on 22 August 2017.
Details of major subsidiaries that were included in the financial statements in the period please refer to the Note. The new
subsidiary included in the consolidation scope in the period was Zhijiang CSG PV New Energy Co., Ltd. (hereinafter referred
to as "Zhijiang PV Company").
IV. Basis of the preparation of financial statements
1. Basis of the preparation
The financial statements are prepared in accordance with the Accounting Standard 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
As at 30 June 2017, the Group had net current liabilities of about RMB 3.385 billion and committed capital expenditure of RMB 390
million. The directors of the Company have made an assessment that the Group has continued for many years and is expected to
continue to generate sufficient cash flow from operating activities over the next 12 months. As at 30 June 2017, the net cash inflow
from operation activities was approximately RMB 1.02 billion. The Group has maintained good relationship with banks so the
Group has been able to successfully get adequate financing credit; As at 30 June 2017, the Group had unutilised internal banking
facilities of approximately RMB 3.9 billion, In addition, the major shareholder of the Group is willing to provide the Group with
interest-free loans of RMB 2 billion for the Group or through its designated parties. As of the date of this report, the shareholder has
provided RMB 1.35 billion of interest-free loans. In addition, the Group also has other available financing channels, such as
short-term financing bills, ultra-short –term financing notes, and medium term notes. The directors are of view that the above
banking facilities and the support from the shareholder can meet the funding requirements of the Group’s debt servicing and capital
commitment. Accordingly, the directors of the Company had adopted the going concern basis in the preparation of this financial
statement of the Company and the Group.
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2017
V. Significant accounting policies and accounting estimates
1. Statement of compliance with the Accounting Standards for Business Enterprises
The financial statements of the Company for the first half year of 2017 truly and completely present the financial position as of 30
June 2017 and the operating results, cash flows and other information for the first half year of 2017 of 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.
4. Recording currency
The recording currency is Renminbi (RMB).
5. Accounting process method of Business combinations under common and different controlling.
(a)Business combinations involving entities under common control
The assets and liabilities that the combining party obtains in a business combination shall be measured on the basis of their carrying
amount in the combined party. As for the balance between the carrying amount of the net assets obtained by the combining party and the
carrying amount of the consideration paid by it, the additional paid-in capital shall be adjusted. If the additional paid-in capital is not
sufficient to be offset, the retained earnings shall be adjusted. Costs directly attributable to business combination are recorded into the
profits and losses once incurred. Transaction costs attributed to issue equity securities or debt securities for business combination are
recorded into initial recognition amounts of equity securities or debt securities.
(b) Business combinations involving entities not under common control
The cost of combination and identifiable net assets obtained by the acquirer in a business combination are measured at the fair value at
the acquisition date. The excess of the cost of acquisition over the Group’s share of the fair value of the identifiable net assets acquired is
recorded as goodwill. If the cost of acquisition is less than the Group’s share of fair value of the net assets of the subsidiary acquired, the
difference is recognised directly in the income statement. Costs directly attributable to business combination are included in the profits
and losses once incurred. Transaction costs attributed to issue equity securities or debt securities for business combination are recorded
into initial recognition amounts of equity securities or debt securities.
6. Basis of preparation 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 when the Group obtains control and are de-consolidated from the date when control ceases.
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2017
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.
When preparing the consolidated financial statements, if 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. Unrealized profits and losses resulting from the sale of assets by the
Company to the subsidiary fully eliminate the net profits attributable to equity holders of the parent; unrealized profits and losses
resulting from the sale of assets by the subsidiary to the Company are eliminated and allocated between net profit attributable to owners
of the parent and minority interests in accordance with the allocation proportion of the Company in the subsidiary. Unrealized profits and
losses resulting from the sale of assets by one subsidiary to another are eliminated and allocated between net profit attributable to owners
of the parent and minority interests in accordance with the allocation proportion of the parent in the subsidiary.
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. Confirmation standard of cash and cash equivalent
Cash and cash equivalents comprise cash on hand, deposits that can be readily drawn on demand, and short-term and highly liquid
investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.
8. Translating of foreign currency operations and foreign currency report form
(a) Foreign currency transactions
Foreign currency transactions are translated into RMB using the exchange rates prevailing at the dates of the transactions.
At 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) Translation 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
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2017
date. Among the owners’ 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 owners’ 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 instruments
(a) Financial assets
(i) Classifications of financial assets
Financial assets are classified into the following categories at initial recognition: financial assets at fair value through profit or loss,
receivables, available-for-sale financial assets and held-to-maturity investments. The classification of financial assets depends on the
Group’s intention and ability to hold the financial assets. The Group has no financial assets at fair value through profit or loss and
held-to-maturity investments for 2014.
Receivables
Receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Receivables
comprise notes receivable, accounts receivable and other receivables.
Available-for-sale financial assets
Available-for-sale financial assets are non-derivative financial assets that are either designated in this category or not classified in any of
the other categories at initial recognition. Available-for-sale financial assets are included in other current assets on the balance sheet if
management intends to dispose of them within 12 months after the balance sheet date.
(ii) Recognition and measurement
Financial assets are recognised at fair value on the balance sheet when the Group becomes a party to the contractual provisions of the
financial instrument. The related transaction costs that are attributable to the acquisition of receivables and available-for-sale financial
assets are included in their initial recognition amounts.
Available-for-sale financial assets are subsequently measured at fair value. Investments in equity instruments are measured at cost when
they do not have a quoted market price in an active market and whose fair value cannot be reliably measured. Receivables are measured
at amortised cost using the effective interest method.
Gains or losses arising from change in fair value of available-for-sale financial assets are recognised directly in equity, except for
impairment losses and foreign exchange gains and losses arising from translation of monetary financial assets. When such financial
assets are derecognised, the cumulative gains or losses previously recognised directly into equity are recycled into profit or loss for the
current period. Interests on available-for-sale investments in debt instruments calculated using the effective interest method during the
period in which such investments are held and cash dividends declared by the investee on available-for-sale investments in equity
instruments are recognised as investment income, which is recognised in profit or loss for the period.
(iii) Impairment of financial assets
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2017
The Group assesses the carrying amounts of financial assets at each balance sheet date. If there is objective evidence that a financial asset
is impaired, an impairment loss is provided for.
Objective evidence indicating impairment of financial assets refers to the matter that actually occurs after the initial recognition of
financial assets, it will affect estimated future cash flows of financial assets, and its impact can be reliably measured.
Objective evidence which indicates the occurrence of impairment for available-for-sale equity instruments includes significant or
non-temporary decrease of fair value of equity instruments investment. The Group conducts individual inspection on each
available-for-sale equity instruments investment at balance sheet date, if the fair value of the available-for-sale equity instrument is less
than its initial investment cost for more than 50% (including 50%) or less than its initial investment cost continually for more than 1 year,
that means impairment incurred; if the fair value of the available-for-sale equity instrument is less than its initial investment cost for more
than 20% (including 20%) but has not reached 50%, the Group will comprehensively consider other factors such as price volatility to
determine whether the equity instrument investment has been impaired. The Group calculates the initial investment cost of initial
available-for-sale equity instruments investment using the weighted average method.
When an impairment loss on a financial asset carried at amortised cost has occurred, the amount of loss is provided for at the difference
between the asset’s carrying amount and the present value of its estimated future cash flows (excluding future credit losses that have not
been incurred). If there is objective evidence that the value of the financial asset recovered and the recovery is related objectively to an
event occurring after the impairment was recognised, the previously recognised impairment loss is reversed and the amount of reversal is
recognised in profit or loss.
If an impairment loss on available-for-sale financial assets measured at fair value is incurred, the cumulative losses arising from the
decline in fair value that had been recognised directly in shareholders' equity are transferred out from equity and into impairment loss.
For an investment in debt instrument classified as available-for-sale on which impairment losses have been recognised, if, in a
subsequent period, its fair value increases and the increase can be objectively related to an event occurring after the impairment loss was
recognised in profit or loss, the previously recognised impairment loss is reversed into profit or loss for the current period. For an
investment in an equity instrument classified as available-for-sale on which impairment losses have been recognised, the increase in its
fair value in a subsequent period is recognised directly in equity.
(iv) Derecognition of financial assets
Financial assets are derecognised when: i) the contractual rights to receive the cash flows from the financial assets have expired; or ii) all
substantial risks and rewards of ownership of the financial assets have been transferred; or iii) the control over the financial asset has
been waived even if the Group does not transfer or retain nearly all of the risks and rewards relating to the ownership of a financial asset.
On derecognition of a financial asset, the difference between the carrying amount and the sum of the consideration received and the
cumulative changes in fair value that had been recognised directly in owner's equity, is recognised in profit or loss.
(b) Financial liabilities
Financial liabilities are classified into two categories at initial recognition: financial liabilities at fair value through profit or loss and other
financial liabilities. Other financial liabilities in the Group mainly include payables, borrowings and bonds payable.
Changes in fair value of financial liabilities at fair value through profit or loss are recognized in the income statement.
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2017
Payables comprise accounts payable, notes payable and other payables, which are recognised initially at fair value and measured
subsequently at amortised cost using the effective interest method.
Borrowings and bonds payable are recognised initially at fair value, net of transaction costs incurred, and subsequently measured at
amortised cost using the effective interest method.
Other financial liabilities within one year (including one year) is presented as current liabilities, while non-current financial liabilities due
with one year (including one year) is reclassified as non-current liabilities due within one year. Others are presented as non-current
liabilities.
A financial liability (or a part of a financial liability) is derecognised when all or part of the obligation is extinguished. The difference
between the carrying amount of a financial liability (or a part of financial liability) extinguished and the consideration paid is recognised
in the income statement.
(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. During valuation, the
Group adopts a valuation technique suitable for current situation, which is supported by sufficient available data and other information,
chooses the inputs consistent with the feature of assets or liabilities considered in the transaction thereof with market participants, and
uses related observable inputs in preference to the greatest extent. Unobservable inputs are used when it is unable to obtain or is
infeasible for related observable inputs.
10. Recognition standard impairment and receivables
(1) Bad debt provision on receivable accounts with major amount individually
The basis or amount for individually significant receivables
Basis of recognition or standard amount of Receivables that are
is individually greater than 20 million.
individually significant
Receivables that are individually significant are subject to
separate impairment assessment. A provision for impairment
of the receivable is recognized if there is objective evidence
Basis of bad debt provision
that the Group will not be able to collect the full amounts
according to the original terms.
(2) Receivables that are provided for provision based on their credit risk characteristics
Name of the portfolio Basis of bad debt provision
Portfolio 1 according to percentage of balance method
Portfolio 2 according to percentage of balance method
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2017
Accounts on aging analysis basis in the portfolio:
□Applicable √Non-applicable
Accounts on percentage basis in the portfolio:
√Applicable □Non-applicable
Percentage of provision for Percentage of provision for other
Name of the portfolio
accounts receivable(%) receivables(%)
Portfolio 1 2% 2%
Portfolio 2 2% 2%
Accounts on other basis in the portfolio:
□Applicable √Non-applicable
(3) The method of provision for impairment of receivables that are individually significant
Reason for providing bad debt A provision for impairment of the receivable is recognized if there is objective evidence that
individually: the Group will not be able to collect the full amounts according to the original terms.
The provision for impairment of the receivable is established at the difference between the
Basis of bad debt provision:
carrying amount of the receivable and the present value of estimated future cash flows.
11. 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)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 impairment of inventories
Provision for decline in the value of inventories is determined at the excess amount of the carrying amounts 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.
12. Classified as assets 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
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2017
asset or the disposal group is available for immediate sale in its present condition subject only to terms that are usual and customary for
sales of such non-current asset or disposal group; (2) the group has signed with other parties legally binding sale agreement and approval
has been obtained, is expected to the sale will be completed within one year.
Non-current assets (except for financial assets and deferred tax assets) that meet the recognition criteria for held for sale are recognised at
the amount equal to the lower of the fair value less costs to sell and the carrying amount. The difference between fair value less costs to
sell and the 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, which 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.
Earnings from discontinued operations stated in the income statement include operating profit and loss and disposal gains and losses.
13. 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. Long-term equity investments where the Group does not have control, joint control or significant influence over the
investees, and which are not quoted in an active market and whose fair value cannot be reliably measured are measured using the
cost method.
a. Initial recognition
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.
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2017
b. Subsequent measurement and recognition method of profit or loss
Long-term equity investments accounted for using the cost method are measured at initial investment cost. Cash dividend or profit
distribution declared by the investees is recognised as investment income in profit or loss.
For long-term equity investments accounted for using the equity method, where the initial investment cost exceeds the Group’s
share of the fair value of the investee’s identifiable net assets at the time of acquisition, the investment is initially measured at 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 time
of acquisition, the difference is included in profit or loss for the current period and the cost of the long-term equity investment is
adjusted upwards accordingly.
For long-term equity investments accounted for using 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 the
carrying amounts 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 shareholding of the
Group in the investee remains unchanged. The carrying amount 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 transactions between the
Group and its investees are eliminated in proportion to the Group’s equity interest in the investees, based on which the investment
gain or losses are recognised. Any losses resulting from transactions between the Group and its investees attributable to asset
impairment losses are not eliminated.
c. Definition of control, joint control and significant influence over the 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
The carrying amount of long-term equity investments in subsidiaries and associates is reduced to the recoverable amount when the
recoverable amount is less than the carrying amount.
14. Fixed assets
(1) Recognition and initial measurement
Fixed assets comprise buildings, machinery and equipment, motor vehicles and others. Fixed assets are recognised when it is
probable that the related economic benefits will flow to the Group and the costs can be reliably measured. Fixed assets purchased or
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2017
constructed by the Group are initially measured at cost at the time of acquisition.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. The carrying amount of the replaced part is derecognised. All the other subsequent
expenditures are recognised in profit or loss in the period in which they are incurred.
(2) Depreciation
Categories Depreciation method Depreciation age (year) Salvage Value Rate (%) Annual depreciation rate (%)
Houses & buildings straight-line method 20–35 5% 2.71% ~ 4.75%
Equipment & machinery straight-line method 8–15 5% 4.75%~11.88%
Transportation
straight-line method 5–8 0% 12.50%~20%
equipment and others
15. Construction in progress
Construction in progress is measured at actual cost. Actual cost comprises construction costs, installation costs, borrowing costs
that are eligible for capitalisation and other costs necessary to bring the fixed assets ready for their 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.
The carrying amount of construction in progress is reduced to the recoverable amount when the recoverable amount is below
the carrying amount.
16. Borrowing costs
The borrowing costs that are directly attributable to the acquisition and construction of a fixed 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
recognised 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 a fixed asset qualifying for capitalisation, the amount
of borrowing costs eligible for capitalisation is determined by 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 a fixed asset qualifying for capitalisation, the amount of
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2017
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) Pricing of intangible assets
Intangible assets including land use rights and, patents and exploitation rights, intangible assets 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 recognised as fixed assets.
(b)Patents
Patents are amortised on a straight-line basis over the patent protection period of 10 years as stipulated by the laws.
(c)Exploitation rights
Exploitation rights are amortized on a straight-line basis over permitted exploitation periods of 10 years set out on the exploitation
certificate.
(d)Periodical review of useful life and amortisation method
For an intangible asset with a finite useful life, review of its useful life and amortisation method is performed at each year-end, with
adjustment made as appropriate.
(e) If the recoverable amount of intangible asset is less than its carrying value, the carrying value is deducted to recoverable amount.
(2) Research and development
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
recognised 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;
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2017
The management has approved the budget for the development of manufacturing technique;
There exists 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 recognised in profit or loss in the period in which they are
incurred. Development costs previously recognised as expenses are not recognised 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
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 recognised 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 recognised 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, the carrying 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 recognised. The impairment loss is first deducted from the carrying amount of goodwill
that is allocated to the asset group or group of asset groups, and then deducted from the carrying amounts of other assets within the asset
groups or groups of asset groups in proportion to the carrying amounts of assets other than goodwill.
Once the above asset impairment loss is recognised, 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.
20. Employee benefits
(1) Short-term employee benefits accounting method
Short-term employee benefits include employee wages or salaries, bonus, allowances and subsidies, staff welfare, premiums or
contributions on medical insurance, work injury insurance and maternity insurance, housing funds, union running costs and employee
education costs, short-term paid absences. The employee benefit liabilities are recognised in the accounting period in which the service
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2017
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)Post-employment benefits accounting method
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.
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, the relevant local authorities are obliged to pay the basic pensions
to them. The amounts based on the above calculations are recognised 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.
(3)Termination benefits accounting method
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
recognises 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 recognises costs or expenses related
to the restructuring that involves the payment of termination benefits.
The termination benefits expected to be paid within one year since the balance sheet date are classified as current liabilities.
21. Provisions
Business restructuring, provisions for product warranties, onerous contracts etc. are recognised when the Group has a present obligation,
it is probable that an outflow of economic benefits will be required to settle the obligation, and the amount of the obligation 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 recognised as
interest expense.
The carrying amount of provisions is reviewed at each balance sheet date and adjusted to reflect the current best estimate.
The provision expected to be paid within one year since the balance sheet date are classified as current liabilities.
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2017
22. Revenue recognition
The amount of revenue is determined in accordance with the fair value of the consideration received or receivable for the Sale of goods
and services in the ordinary course of the Group’s activities. Revenue is shown net of discounts, rebates and returns.
Revenue is recognised when the economic benefits associated with the transaction will flow to the Group, the related revenue can be
reliably measured, and the specific revenue recognition criteria have been met for each type of the Group’s activities as described
below:
(a)Sale of goods
The Group mainly sells glass, and products related to solar energy, new energy applications and electronic glass and display. 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 deliver
the goods on board the vessel, or when the goods are delivered to a certain place specified in the contract. For above sales, when the
buyer takes over the goods, the buyer has the right to sell the products, and should bear the risk of price fluctuation or goods damage
(b)Rendering of services
Revenue is recognized for the rendering of service by the Group to external parties upon the completion of related service.
(c)Transfer of asset use rights
Interest income is recognized on a time-proportion basis using the effective interest method.
23. Government grants
(1)Judgment basis and accounting method of government grants related to an asset
Government grants are the monetary asset the Group receives from the government for free, including tax refund, government subsidies,
etc.
Grants from the government are recognised 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 grant are measured at fair value, if the fair value cannot be reliably obtained, it is measured at nominal amount.
Government grants related to an asset refer to the government assets which are obtained by enterprises for the purposes of purchase or
construction of, or which form the long-term assets by other ways. Government grants related to income refers to government grants
other than those related to assets.
Government grants related to the assets are offset against the carrying amount of the underlying assets or recognized as deferred income
and are accounted for in profit or loss in a reasonable and systematic manner within the useful life of the relevant assets.
(2) Judgment basis and accounting method of government grants related to income
Government grants related to income which are used to compensate for the related costs or losses during the subsequent period are
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2017
recognized as deferred income and are recognized in the current profit or loss or related expenses for the period of recognition of the
relevant cost expense or loss. The relevant expenses or losses incurred, directly included in the current profits and losses or offset the
relevant costs. Similar government grants use the same presentation. Government grants related to daily activities are incorporated into
operating profit, while those unrelated to daily activities are incorporated into non - operating income and expenditure.
25. Deferred tax assets and deferred tax liabilities
Deferred tax assets and deferred tax liabilities are calculated and recognised based on the differences arising between the tax bases of
assets and liabilities and their carrying amounts (temporary differences). Deferred tax asset is recognised 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 recognised for a temporary difference arising from the initial recognition of goodwill. No deferred tax asset or deferred tax liability is
recognised 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 realised or
the liability is settled.
Deferred tax assets are only recognised 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 utilised.
Deferred tax liabilities are recognised 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 utilised, the corresponding deferred tax assets are recognised.
Deferred tax assets and liabilities are offset when:
deferred income tax assets and deferred income tax liabilities are related to the income tax levied by the same the same taxation
authority on the same taxpayer in the group;
that tax payer within the Group has a legally enforceable right to offset current tax assets against current tax liabilities.
25. Leases
(1) Accounting method of operating lease
Lease payments under an operating lease are recognised on a straight-line basis over the period of the lease, and are either capitalised as
part of the cost of related assets, or charged as an expense for the current period.
Lease income under an operating lease is recognised as revenue on a straight-line basis over the period of the lease.
(2) Accounting method of financing lease
A lease that transfers substantially all the risks and rewards incidental to ownership of an asset is a finance lease. An operating lease is
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2017
a lease other than financing lease.
26. Other significant accounting policies and accounting estimates
The Group continually evaluates the critical accounting estimates and key assumption 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 causing a material adjustment to the carrying
amounts of assets and liabilities within the next accounting year are outlined below:
(a)Income taxes
The Group is subject to income taxes in numerous jurisdictions. There are many 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 taxes in each of these jurisdictions. Where the final tax outcome of these matters is different from the amounts that
were initially recorded, such differences will impact the income tax and deferred tax provisions in the period in which such
determination is 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.
Realization 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. The
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
The 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, the 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. There will be difference between the results of estimation and actual results for next accounting period, so
significant adjustments may be made to the carrying amount of fixed assets in balance sheet.
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2017
(e)Goodwill impairment
The Group tests annually whether goodwill has suffered any impairment. The recoverable amount of asset groups and groups of asset
groups is the present value of the future cash flows expected to be derived from them. These calculations require use of estimates (Note
4 (12)).
If management revises the gross margin that is used in the calculation of the future cash flows of asset groups and groups of asset groups,
and the revised gross margin is lower than the one currently used, the Group would need to recognise further impairment against
goodwill.
If management revises the pre-tax discount rate applied to the discounted cash flows, and the revised pre-tax discount rate is higher than
the one currently applied, the Group would need to recognise further impairment against goodwill.
If the actual gross margin/pre-tax discount rate is higher/lower than management’s estimates, the impairment loss of goodwill
previously provided for is not allowed to be reversed by the Group
27. Changes in significant accounting policies and accounting estimates
(1) Changes in significant accounting policies
√Applicable □Not applicable
The content and reasons of accounting policy changes Approval procedure Remarks
The Ministry of Finance promulgated the revised Accounting Standard for Business
Enterprises No. 16 - Government Grants on May 10, 2017. The Company has adopted Board of directors No influence
the above guidelines to prepare the semi-annual financial statements for 2017.
The Ministry of Finance promulgated the revised Accounting Standard for Business Enterprises No. 16 - Government Grants on May
10, 2017. The Company has adopted the above guidelines to prepare the semi-annual financial statements for 2017. It had no effect on
the Group's consolidated balance sheet and the Company's balance sheet as at 31 December 2016 and the consolidation and the
Company's income statement for the six months ended 30 June 2016.
(2)Changes in significant accounting estimates
□Applicable √ Not applicable
28. Others
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;
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2017
(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 is mainly used for the overhaul, renewal and maintenance of safety facilities. The safety production costs
are charged to costs of related products or profit orloss 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
recognised. The fixed assets are no longer be depreciated in future.
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: (1) the component is able to earn
revenues and incur expenses from its ordinary activities; (2) 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 (3) 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
Tax items Tax basis Tax rate
Taxable value added amount (Tax payable is calculated
Value added tax (“VAT”) using the taxable sales amount multiplied by the effective 6%-17%
tax rate less current period’s deductible VAT input )
Urban construction tax Total VAT, Business tax and GST 1%-7%
Enterprise income tax Taxable income 0%-25%
Educational surtax Total VAT, Business tax and GST 3%-5%
Resource tax Quantities of Silica sold RMB 3 per ton
2. Tax incentives
The main tax incentives the Group is entitled to are as follows:
Tianjin Energy Conservation Glass Co., Ltd. (“Tianjin Energy Conservation”) passed review on a high and new tech enterprise in 2015
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 2015.
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2017
Dongguan CSG Architectural Glass Co., Ltd. (“Dongguan CSG”) passed review on a high and new tech enterprise in 2016 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 2016.
Wujiang CSG North-east Architectural Glass Co., Ltd. (“Wujiang CSG”) passed review on a high and new tech enterprise in 2014 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 2014. It is on a review of high and new tech enterprise at present, and temporarily applies to 15% income tax rate for the period.
Dongguan CSG Solar Glass Co., Ltd. (“Dongguan CSG Solar”) passed review on a high and new tech enterprise in 2014 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
2014. It is on a review of high and new tech enterprise at present, and temporarily applies to 15% income tax rate for the period.
Yichang CSG Silicon Co., Ltd. (“Yichang CSG Silicon”) passed review on a high and new tech enterprise in 2014 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 2014.
It is on a review of high and new tech enterprise at present, and temporarily applies to 15% income tax rate for the period.
Dongguan CSG PV-tech Co., Ltd. (“Dongguan CSG PV-tech”) passed review on a high and new tech enterprise in 2016 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
2016.
Hebei Shichuang Glass Co., Ltd. (“Hebei Shichuang”) passed review on a high and new tech enterprise in 2016 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 2016.
Wujiang CSG Glass Co., Ltd. (“Wujiang CSG”) was recognised as a high and new tech enterprise in 2014, 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 2014. It is
on a review of high and new tech enterprise at present, and temporarily applies to 15% income tax rate for the period.
Xianning CSG Glass Co Ltd. (“Xianning CSG”) was recognised as a high and new tech enterprise in 2014, 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 2014. It is
on a review of high and new tech enterprise at present, and temporarily applies to 15% income tax rate for the period.
Xianning CSG Energy-Saving Glass Co., Ltd. (“Xianning CSG Energy-Saving”) was recognised as a high and new tech enterprise in
2015, 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 2015.
Yichang CSG Photoelectric Glass Co., Ltd. (“Yichang CSG Photoelectric”) was recognised as a high and new tech enterprise in 2015,
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 2015.
Shenzhen CSG Display was recognised as a high and new tech enterprise in 2015, 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 2015.
Yichang CSG Display Co., Ltd (“Yichang CSG Display”) was recognised as a high and new tech enterprise in 2016, 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
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2017
2016.
Qingyuan CSG New Energy-Saving Materials Co., Ltd. (“Qingyuan CSG Energy-Saving”) was recognised as a high and new tech
enterprise in 2016, 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 2016.
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 the period.
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 the period.
Qingyuan CSG New Energy Co., Ltd. (“Qingyuan CSG New Energy”), Suzhou CSG PV Energy Co., Ltd. (“Suzhou CSG PV Energy”),
Jiangsu Wujiang CSG New Energy Co., Ltd. (“Wujiang CSG New Energy”), and Yichang CSG New Energy Co., Ltd. (“Yichang CSG
New 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. Qingyuan CSG New Energy, Suzhou CSG PV Energy and Wujiang CSG New Energy started to carry out
operations in 2015, while Yichang CSG New Energy started operation in 2016. The applicable enterprise income tax rate for them is
0% for the period.
In addition, pursuant to the document Fogang Guo Shui Shui Tong [2015] No. 2489, the VAT for photovoltaic power generation of
Qingyuan CSG New Energy is subject to the refund upon collection policy.
3. Others
Some subsidiaries of the Group have used the “exempt, credit, refund” method on goods exported and the refund rate is 5%-17%.
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 27,530 17,239
Cash at bank 932,022,992 584,549,751
Other cash balances 2,184,679 2,236,515
Total 934,235,201 586,803,505
Including: Total overseas deposit 19,394,575 12,956,226
Other cash balances include margin deposits for the application of opening letter of credit and loan from the bank, amounting to RMB
2,184,679 (31 Dec. 2016: RMB 2,236,515), which is restricted cash.
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2017
2. 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
Bank acceptance notes 248,524,397 138,557,412
Trade acceptance notes 288,032,806 317,789,825
Total 536,557,203 456,347,237
(2) Notes receivable which has been endorsed or discounted at the end of the term by the Company but not
yet due at balance sheet date
Unit: RMB
Amount of recognition termination Amount of not terminated recognition at the
Item
at the period-end period-end
Bank acceptance notes 1,647,228,930
Trade acceptance notes 181,790,787
Total 1,647,228,930 181,790,787
3. Accounts receivable
(1) Accounts receivable disclosed by category
Unit: RMB
End of term Beginning of term
Book balance Bad debt provision Book balance Bad debt provision
Categories
Propor Propor Book value Propor Propor Book value
Amount Amount Amount Amount
tion % tion % tion % tion %
Accounts
receivable
withdrawn bad
debt provision 684,955,960 98% 13,168,976 2% 671,786,984 631,863,585 98% 12,187,534 2% 619,676,051
according to credit
risks
characteristics
Account
receivable with
12,404,070 2% 4,247,139 34% 8,156,931 12,590,789 2% 4,280,857 34% 8,309,932
minor individual
amount but bad
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2017
debt provision is
provided
Total 697,360,030 100% 17,416,115 2% 679,943,915 644,454,374 100% 16,468,391 3% 627,985,983
Accounts receivable with large amount individually and bad debt provisions were provided
□ Applicable √ Non-applicable
Accounts receivable on which bad debt provisions are provided on age analyze basis in the portfolio
□ Applicable √ Non-applicable
Accounts receivable on which bad debt provisions are provided on percentage analyze basis in a portfolio
√Applicable □ Non-applicable
Unit: RMB
Closing balalnce
Name of portfolio
Accounts receivable Bad debt provision Proportion %
Portfolio 1 684,955,960 13,168,976 2%
Portfolio 2
Total 684,955,960 13,168,976 2%
(2) Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debt provision during the report period was of RMB 5,374,252. The amount of the reversed or
collected part during the report period was of RMB 4,358,997.
(3) The actual write-off accounts receivable
Unit: RMB
Item Write-off amount
Accounts receivable 67,531
(4) Top 5 of the closing balance of the accounts receivable colleted according to the arrears party
As at 30 June 2017, the top 5 of the closing balance of the accounts receivable colleted according to the arrears party were collected
and analyzed as follows:
Balance Provision for bad debts Percentage in total accounts receivable balance
Total balances for the five 169,168,209 (3,383,364) 24%
largest accounts receivable
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2017
4. Advances to suppliers
(1) Listed by aging analysis
Unit: RMB
Closing balance Opening balance
Age Proportion Proportion
Amount Amount
ratio (%) ratio (%)
within 1 year 148,306,533 91% 80,819,387 84%
1-2 years 13,940,844 9% 14,913,745 16%
Total 162,247,377 -- 95,733,132 --
As at 30 June 2017, advances to suppliers ageing over one year amount to RMB13,940,844 (31 December 2016: RMB14,913,745).
They were mainly the advances of materials, and the payment had not been selected because the materials had not been received.
(2) Top 5 of the closing balance of the advances to suppliers colleted according to the target
As at 30 June 2017, the top five largest advances to supplies are set out as below:
Balance Percentage in total advances balance
Total advances for the five largest advances 58,816,501 36%
5. Other account receivable
(1) Other accounts receivable disclosed by category:
Unit: RMB
Closing balance Openning balance
Bad debt
Book balance Bad debt provision Book balance
Categories provision
Book value Book value
Propor Propor Propor Propor
Amount Amount Amount Amount
tion % tion % tion % tion %
Other accounts
receivable
withdrawn bad debt
34,326,598 100% 767,508 2% 33,559,090 33,903,217 100% 674,068 2% 33,229,149
provision according
to credit risks
characteristics
Total 34,326,598 100% 767,508 2% 33,559,090 33,903,217 100% 674,068 2% 33,229,149
Statement on categories of other receivable accounts:
Other accounts receivable with large amount and were provided bad debt provisions individually at end of period.
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2017
□ Applicable √ Non-applicable
Other accounts receivable in the portfolio on which bad debt provisions were provided on age analyze basis
□ Applicable √ Non-applicable
Other accounts receivable in the portfolio on which bad debt provisions were provided on percentage basis
√ Applicable □ Non-applicable
Unit: RMB
Closing balance
Name of portfolio
Other receivable accounts Bad debt provision proportion%
portfolio 1 34,326,598 767,508 2%
Total 34,326,598 767,508 2%
Explanation for determining the basis of the portfolio:
Other accounts receivable in the portfolio on which bad debt provisions were provided on other basis
□ Applicable √ Non-applicable
(2) Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debt provision during the report period was of RMB127,208. The amount of the reversed or
collected part during the report period was of RMB 33,768.
(3) Other accounts receivable classified by the nature of accounts
Unit: RMB
Nature Closing balance Opening balance
Refundable deposits 6,953,820 6,121,403
Payments made on behalf of other parties 23,225,811 25,019,422
Petty cash 1,389,488 959,785
Export tax rebates receivable 805,438 755,372
Others 1,952,041 1,047,235
Total 34,326,598 33,903,217
(4) Top 5 of the closing balance of the other accounts receivable collated according to the arrears party
Unit: RMB
Proportion of the
Name of the total year end
Closing balance of
companies Nature Closing balance Ages balance of the
bad debt provision
Industrial accounts receivable
(%)
Government agency Independent third 11,067,754 1 to 3 years 32% 221,355
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2017
A party
Independent third W Within 1 year
Company B 4,268,347 12% 85,367
party
Independent third Within 1 year
Company C 3,183,029 9% 63,661
party
Independent third Within 1 year
Company D 1,900,000 6% 38,000
party
Government agency Independent third Within 1 year
1,196,150 3% 23,923
E party
Total -- 21,615,280 -- 62% 432,306
6. Inventories
(1) Categories of inventory
Unit: RMB
Closing balance Opening balance
Items Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Raw materials 254,363,351 1,480,641 252,882,710 166,639,254 2,025,446 164,613,808
Product in process 20,325,740 20,325,740 18,893,651 18,893,651
Products in stock 330,050,877 3,147,241 326,903,636 274,559,889 6,347,741 268,212,148
Material in
30,481,690 30,481,690 26,061,318 26,061,318
circulation
Total 635,221,658 4,627,882 630,593,776 486,154,112 8,373,187 477,780,925
(2) Inventory impairment provision
Unit: RMB
Increased this term Decreased this term
Categories Opening balance Closing balance
Withdrawal Other Reverse or write-off Other
Raw materials 2,025,446 544,805 1,480,641
Products in stock 6,347,741 3,200,500 3,147,241
Total 8,373,187 3,745,305 4,627,882
Details of inventory impairment provision as following:
Basis for provision for decline in the value of inventories Reasons of reversal of the decline in
the value of inventories in the period
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2017
Finished goods The amount of carrying amount less net realisable value due to Sold
decline in price of products
Raw materials The amount of book value less net realisable value due to sluggish Used
or damaged raw materials
7. Other current assets
Unit: RMB
Item Closing balance Opening balance
VAT to be offset 186,548,195 150,317,894
Asstes held for sale 40,049,163 40,049,163
Enterprise income tax prepaid 1,590,919 1,325,723
VAT input to be recognised 21,181,042 8,212,797
Total 249,369,319 199,905,577
8. Fixed assets
(1) Particulars of fixed assets
Unit: RMB
Machinery and Motor vehicles
Items Buildings Total
equipment and others
I. Original book value:
1. Opening balance 3,911,336,527 11,699,296,248 201,923,067 15,812,555,842
2. Increased amount of the period
(1) Acquisition 1,007,850 7,963,289 2,988,342 11,959,481
(2) Transfers from construction in progress 70,349,000 851,590,771 1,185,606 923,125,377
(3) Increase from enterprise combination
(4) Others 731,040 1,858,203 472,773 3,062,016
3. Decreased amount of the period
(1)Disposal or retirement 495,370 2,576,058 3,071,428
(2) Others 3,695,395 282,254,513 285,949,908
4. Closing balance 3,979,729,022 12,277,958,628 203,993,730 16,461,681,380
II. Accumulative depreciation and
accumulative amortization
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2017
1. Opening balance 629,946,237 3,287,606,208 172,265,020 4,089,817,465
2. Increased amount of the period
(1) Withdrawal 61,506,196 408,580,685 11,232,619 481,319,500
3. Decreased amount of the period
(1)Disposal or retirement 378,003 2,461,513 2,839,516
(2) Transferred to construction in progress 1,895,250 138,978,164 140,873,414
4. Closing balance 689,557,183 3,556,830,726 181,036,126 4,427,424,035
III. Depreciation reserves
1. Opening balance 264,765,386 264,765,386
2. Increased amount of the period
(1) Withdrawal
3. Decreased amount of the period
(1)Disposal or retirement
(2) Others 4,010,176 4,010,176
4. Closing balance 260,755,210 260,755,210
IV. Book value
1. Closing book value 3,290,171,839 8,460,372,692 22,957,604 11,773,502,135
2. Opening book value 3,281,390,290 8,146,924,654 29,658,047 11,457,972,991
(2) Fixed asset not licensed yet
Unit: RMB
Items Book value Reason for not granted
Have submitted the required documents and are in the process of
Buildings 910,163,588
application, or the related land use right certificate pending
During January to June 2017, the depreciation amount provided for fixed assets was RMB 481,319,500 (January to June 2016: RMB
421,993,622), and the amount of depreciation expenses charged to cost of sales, selling and distribution expenses, general and
administrative expenses and construction in progress was RMB 448,195,663, RMB 482,108, RMB 31,885,617, and RMB 756,112
(January to June 2016: RMB 385,642,218, RMB 506,576, RMB 26,989,222, RMB 8,855,606), respectively.
During January to June 2017, the cost of fixed assets transferred from construction in progress amounted to RMB 923,125,377
(January to June 2016: RMB 901,652,337).
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2017
9. Construction in process
(1)Particulars of construction in process
Unit: RMB
Closing balance Opening balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Yichang 1GW silicon
346,209,311 346,209,311 95,011,027 95,011,027
slice project
Yichang CSG Display
305,291,976 18,170,650 287,121,326 274,342,571 14,160,474 260,182,097
panel display project
Xianning CSG
Photoelectric Glass 221,147,847 221,147,847 41,267,876 41,267,876
project
Hebei float 600T
120,324,473 120,324,473
tech-innovation project
Zhanjiang PV PV power
53,766,946 53,766,946 8,855,560 8,855,560
station project
Wujiang float glass
70,357,072 19,876,460 50,480,612 70,178,986 19,876,460 50,302,526
project
Dongguan Solar Glass
Phase I and II 78,970,995 33,075,116 45,895,879 78,970,995 33,075,116 45,895,879
improvement project
Sichuan energy-saving
10,493,107 10,493,107 13,005,928 13,005,928
project Phase III
Dongguan PV 250MW
module capacity 10,141,901 10,141,901
expansion project
Dongguan PV 100MV
cell production capacity 8,343,263 8,343,263
expansion project
Yichang 700MW silicon
2,018,255 2,018,255 1,775,641 1,775,641
slice expansion project
Wujiang Photovoltaic
Packaging Materials 1,693,809 1,693,809 1,583,553 1,583,553
Project
Xianning energy-saving
1,354,508 1,354,508 1,083,430 1,083,430
glass project
Dongguan PV Tech 1,146,672 1,146,672 8,224,072 8,224,072
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2017
200MW PV-tech Battery
Expansion project
Yichang 5000T
electronic-grade 171,211,288 171,211,288
polysilicon project
Chengdu float 550T line
102,304,740 102,304,740
tech-renovation
Hebei float 900T
388,627,081 388,627,081
tech-innovation project
Heyuan PV tech 11MV
distributed generation 85,126,446 85,126,446
project
others 99,287,462 99,287,462 87,639,233 87,639,233
Total 1,330,547,597 71,122,226 1,259,425,371 1,429,208,427 67,112,050 1,362,096,377
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2017
(2) Movement of significant project
Unit: RMB
Capitalizin
Investmen Accumulate Including:
Transferred g rate of
Opening Increased Other Closing t on of interest
Projects Budget into fixed Progress interest Fund recourse
balance this term decreases balance budget interest capitalized
assets this
(%) capitalized this term
period %
Yichang 1GW Internal fund and
1,073,209,600 95,011,027 251,392,592 194,308 346,209,311 48.00% 65.00% 3,371,909 2,825,684 4.41%
silicon slice project bank loan
Yichang CSG
Internal fund and
Display panel 1,970,000,000 274,342,571 54,407,827 23,194,679 263,743 305,291,976 55.00% 65.00% 2,691,886 1,694,243 4.11%
bank loan
display project
Xianning CSG
Photoelectric Glass 510,000,000 41,267,876 180,424,957 544,986 221,147,847 54.00% 70.00% 3,030,956 3,030,956 4.75% Internal fund and
project bank loan
Hebei float 600T
tech-innovation 181,250,000 120,324,473 120,324,473 2.00% 2.00% Internal fund and
project bank loan
Zhanjiang PV PV
power station 130,000,000 8,855,560 44,911,386 53,766,946 40.00% 45.00% 918,139 139,762 4.57% Internal fund and
project bank loan
Wujiang float glass Internal fund and
919,891,000 70,178,986 431,588 253,502 70,357,072 100.00% 100.00% 20,120,444
project bank loan
Dongguan Solar
Glass Phase I and 396,410,000 78,970,995 78,970,995 80.00% 80.00% Internal fund
II improvement
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2017
project
Sichuan
energy-saving 222,817,517 13,005,928 2,512,821 10,493,107 99.00% 99.00% Internal fund
project Phase III
Dongguan PV
250MW module Internal fund and
28,000,000 10,329,122 187,221 10,141,901 36.00% 50.00% 45,374 45,374 4.80%
capacity expansion bank loan
project
Dongguan PV
100MV cell Internal fund and
15,000,000 8,343,263 8,343,263 56.00% 70.00% 37,327 37,327 4.80%
production capacity bank loan
expansion project
Yichang 700MW
Internal fund and
silicon slice 697,000,000 8,224,072 7,077,400 1,146,672 100.00% 100.00% 32,015,800
bank loan
expansion project
Wujiang
Photovoltaic Internal fund and
1,980,000,000 1,775,641 242,614 2,018,255 76.00% 100.00% 17,594,454 4.41%
Packaging bank loan
Materials Project
Xianning
Internal fund and
energy-saving 565,119,318 1,583,553 137,080 26,824 1,693,809 95.00% 100.00% 6,321,397
bank loan
glass project
Dongguan PV Tech
200MW PV-tech
295,270,606 1,083,430 373,576 68,594 33,904 1,354,508 99.00% 100.00% 11,306,278
Battery Expansion Internal fund and
project bank loan
Yichang 5000T Internal fund and
698,396,700 171,211,288 46,327,655 216,595,546 943,397 30.00% 35.00% 7,177,033 3,967,498 4.41%
electronic-grade bank loan
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2017
polysilicon project
Chengdu float 550T
200,000,000 102,304,740 57,219,831 159,524,571 92.00% 100.00% Internal fund
line tech-renovation
Hebei float 900T
tech-innovation 124,000,000 388,627,081 4,503,619 393,130,700 100.00% 100.00% 4,211,893 1,057,593 4.94% Internal fund and
project bank loan
Heyuan PV tech
Internal fund and
11MV distributed 91,610,000 85,126,446 1,021,587 86,141,345 1,834 4,854 94.00% 100.00% 325,704 325,704 5.00%
bank loan
generation project
Internal fund and
others 1,046,953,400 87,639,233 46,885,679 36,185,701 98,339,211 67,530,341 910,042
bank loan
Total 11,144,928,141 1,429,208,427 827,276,849 923,125,377 2,812,302 1,330,547,597 -- -- 176,698,935 14,034,183 --
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2017
10. Intangible assets
(1) Particulars of intangible assets
Unit: RMB
Item Land use rights Patents Mineral rights Others Total
I. Original book value:
1. Opening balance 1,026,603,700 199,922,986 4,456,536 23,548,047 1,254,531,269
2. Increased amount of the period
(1) Acquisition 2,856,020 13,539 2,869,559
(2) Internal R &D 6,097,439 6,097,439
(3) Increase from enterprise combination
3. Decreased amount of the period
(1)Disposal
4. Closing balance 1,026,603,700 208,876,445 4,456,536 23,561,586 1,263,498,267
II. Total accrued amortization
1. Opening balance 128,007,677 57,225,743 3,306,083 20,322,309 208,861,812
2. Increased amount of the period
(1) Withdrawal 9,813,201 7,601,215 200,321 2,141,791 19,756,528
3. Decreased amount of the period
(1)Disposal
4. Closing balance 137,820,878 64,826,958 3,506,404 22,464,100 228,618,340
III. Impairment provision
1. Opening balance 13,201,347 9,133 13,210,480
2. Increased amount of the period
(1) Withdrawal
3. Decreased amount of the period
(1)Disposal
4. Closing balance 13,201,347 9,133 13,210,480
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2017
IV. Book value
1. Closing book value 888,782,822 130,848,140 950,132 1,088,353 1,021,669,447
2. Opening book value 898,596,023 129,495,896 1,150,453 3,216,605 1,032,458,977
At the end of the period, the intangible assets arising from internal research and development accounted for 10.20% of total of
intangible assets.
(2) Land use right not licensed yet
Unit: RMB
Item Book value Reason for not granted
Land 5,595,776 in the process
During Jan.-Jun. 2017, the amortisation of intangible assets amounted to RMB 19,756,528 (Jan.-Jun. 2016: RMB 16,315,423).
As at 30 June 2017, ownership certificates of land use right (“Land ownership Certificates”) for certain land use rights of the Group
with carrying amounts of approximately RMB 5,595,776 (cost: RMB 6,586,712) had not yet been obtained by the Group (as at 31
December 2016, carrying amount: RMB 5,718,191, cost: RMB 6,586,712). 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.
11. Development expenditure
Unit: RMB
The decrease amount in the period
The increased
Item Opening balance Recognised as Transfer in gains and Closing balance
amount in the period
intangible assets losses
Development
66,927,714 15,642,633 6,097,439 423,437 76,049,471
expenditure
Total 66,927,714 15,642,633 6,097,439 423,437 76,049,471
During Jan.-Jun. 2017, the total amount of research and development expenditures of the Group was RMB 166,809,377 (Jan.-Jun.
2016: RMB 155,478,325), including RMB 151,590,181 (Jan.-Jun. 2016: RMB 127,759,895) recorded in income statement for current
period and RMB 6,097,439 were recognized as intangible assets (Jan.-Jun. 2016: nil). As at 30 June 2017, the intangible assets arising
from internal research and development accounted for 10.2% of the total of book value of intangible assets (31 December 2016:
9.51%).
12. Goodwill
(1)Book value of goodwill
Unit: RMB
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2017
Name of the companies or
Opening balance Increased this term Decreased this term Closing balance
goodwill item
Tianjing CSG Energy-saving
3,039,946 3,039,946
Company
Shenzhen Display Company 4,857,406 4,857,406
Xianning Fengwei Company 389,494,804 389,494,804
Total 397,392,156 397,392,156
The goodwill allocated to the asset groups and groups of asset groups from Tianjing CSG Energy-saving was summarised by operating
segments as Architectural Glass segment. The goodwill allocated to the asset groups and groups of asset groups from Shenzhen CSG
Displayand Xianning CSG Photoelectric are summarised by operating segments as Electronic Glass and Display segment.
The Company's management considered that the goodwill was not impaired as at 30 June 2017.
The recoverable amount of asset groups is determinded by net present value of estimated future cash flows which is determined
according to the five-year budget approved by management. The cashflow exceed five years is forcasted by using growth rates not
exceeding similar long-term average growth rates of each asset group’s industry. The discount rates used are the pre-tax interest rates
that are able to reflect the risks specific to the related asset groups.
13. Long-term expenses to be amortized
Unit: RMB
Item Opening balance Increased this term Amortized this term Closing balance
Expenses to be amortized 975,660 9,496,897 779,455 9,693,102
Total 975,660 9,496,897 779,455 9,693,102
14. Deferred income tax asset/deferred income tax liabilities
(1) Deferred income tax assets had not been off-set
Unit: RMB
Closing balance Opening balance
Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference assets difference assets
Provision for asset
400,092,300 60,026,145 410,272,182 61,899,046
impairments
Deductible loss 137,896,780 22,522,859 164,790,392 28,883,903
Government grants 130,489,613 20,809,503 129,722,993 20,654,199
Accrued expenses 66,241,073 11,953,528 81,018,069 12,352,386
Depreciation of fixed 26,759,268 7,741,138 28,241,461 6,320,146
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2017
assets
Total 761,479,034 123,053,173 814,045,097 130,109,680
(2) Deferred income tax liabilities had not been off-set
Unit: RMB
Closing balance Opening balance
Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference liabilities difference liabilities
Depreciation of fixed
347,335,276 62,520,184 396,118,583 63,406,963
assets
Total 347,335,276 62,520,184 396,118,583 63,406,963
(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 assetsor liabilities after assets and liabilities at assetsor liabilities after
the period-end off-set the period-beginning off-set
Deferred tax assets 38,355,963 84,697,210 33,657,826 96,451,854
Deferred tax liabilities 38,355,963 24,164,221 33,657,826 29,749,137
(4) Details of unrecognised deferred income tax assets
Unit: RMB
Item Closing balance Opening balance
Deductible losses 410,872,906 342,455,782
Total 410,872,906 342,455,782
(5) Deductible losses of unrecognized deferred income tax assets will due the following years
Unit: RMB
Year Closing balance Opening balance Note
2018 年 54,100,000 54,100,000
2019 年 82,300,000 82,300,000
2020 年 94,430,197 94,430,197
2021 年 111,625,585 111,625,585
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2017
2022 年 68,417,124
Total 410,872,906 342,455,782 --
The deductible loss of the unrecognized deferred income tax assets is mainly attributable to the Company and some of the subsidiaries
which have been closed. The management of the Company can not expect the Company and the subsidiaries to generate sufficient
taxable income which can be used to deduct such deductible losses in the future. Therefore, deferred income tax assets are not
recognized.
15. Other non-current assets
Unit: RMB
Item Closing balance Opening balance
Prepayment for equipment and software
74,836,840 69,945,550
upgrading expenses
VAT input to be offset 10,718,843
Prepayment for lease of land use rights 6,510,000 6,510,000
Total 81,346,840 87,174,393
16. Short-term loans
(1) Categories of short-term loans
Unit: RMB
Item Closing balance Opening balance
Guaranteed loan 709,694,000 367,618,369
Unsecured loan 1,690,000,000 1,650,251,293
Ultra-short-term finance bonds (iii) 2,000,000,000
Total 2,399,694,000 4,017,869,662
(i) On 17 May 2016, the Company issued the Phase II ultra-short-term financial bonds of RMB900,000,000 for 2016, with the maturity
data of 13 February 2017 and annual rate of 4.18%.As at the reporting date, such short-term bonds had been repaid.
On 2 August 2016, the Company issued the Phase III ultra-short-term financial bonds of RMB600,000,000 for 2016, with the maturity
data of 1 May 2017 and annual rate of 3.67%.
On 1 September 2016, the Company issued the Phase IV ultra-short-term financial bonds of RMB500,000,000 for 2016, with the
maturity data of 2 June 2017 and annual rate of 3.50%.
(ii) As at 30 June 2017, the Company provided its subsidiaries with guarantee for the short-term borrowings of RMB 709,694,000 (31
December 2016: RMB 367,618,369), and the Company had no counter guarantee from minority shareholders of subsidiaries (31
December 2016: Nil).
(iii) As at 30 June 2017, the interest of short-term borrowings varied from 2.70% to 5.00% (31 December 2016: 2.70% to 4.79%).
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2017
17. Notes payable
Unit: RMB
Category Closing balance Opening balance
Bank acceptance notes 114,500,000 20,000,000
Total 114,500,000 20,000,000
18. Accounts payable
(1)Particulars of accounts payable
Unit: RMB
Item Closing balance Opening balance
Account payable for materials 833,168,302 747,769,987
Account payable for equipments 281,497,857 233,779,329
Account payable for constructions 171,181,012 100,246,462
Account payable for freight 57,741,846 40,916,380
Account payable for water and electricity 33,639,900 44,602,055
Others 5,271,561 2,555,157
Total 1,382,500,478 1,169,869,370
(2) Significant accounts payable due for over one year
Unit: RMB
Item Closing balance Unpaid reason
Account payable for construction and As the construction work had not passed the final
98,986,756
equipments. acceptance test yet, the balance was not yet settled.
Total 98,986,756 --
As at 30 June 2017, the amount of accounts payable over 1 year was approximately RMB 98,986,756 (31 December 2016: RMB
140,385,720), which mainly comprised payables for construction and equipment. As the construction work had not passed the final
acceptance test yet, the balance was not yet settled.
19. Advances from customers
(1) List of advance from customers
Unit: RMB
Item Closing balance Opening balance
Advances from customers 201,549,137 142,330,979
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2017
Total 201,549,137 142,330,979
20. Employee benefits payable
(1) List of Employee benefits payable
Unit: RMB
Items Opening balance Increased this term Decreased this term Closing balance
I. Short-term employee
193,166,719 598,752,219 618,819,592 173,099,346
benefits
II. Welfare after
departure- defined 205,520 53,146,283 53,264,828 86,975
contribution plans
Total 193,372,239 651,898,502 672,084,420 173,186,321
(2) List of short-term employee benefits
Unit: RMB
Items Opening balance Increased this term Decreased this term Closing balance
1. Wages and salaries, bonuses,
159,601,219 506,010,114 548,380,471 117,230,862
allowances and subsidies
2. Social security contributions 50,331 23,386,459 23,369,781 67,009
Including: Medical insurance 31,340 20,305,292 20,282,053 54,579
Work injury insurance 12,677 2,271,511 2,275,803 8,385
Maternity insurance 6,314 809,656 811,925 4,045
3. Housing funds 2,603,791 26,571,506 26,290,058 2,885,239
4.Labour union funds and
15,571,378 7,084,140 8,025,385 14,630,133
employee education funds
5.Management bonus for
15,340,000 35,700,000 12,753,897 38,286,103
performance
Total 193,166,719 598,752,219 618,819,592 173,099,346
(3) List of defined contribution plans payable
Unit: RMB
Items Opening balance Increased this term Decreased this term Closing balance
1. Basic pensions 192,780 51,126,025 51,239,954 78,851
2. Unemployment insurance 12,740 2,020,258 2,024,874 8,124
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2017
Total 205,520 53,146,283 53,264,828 86,975
According to the decision of the fifth meeting of the seventh session of the board of directors held on 31 March 2015, the Board
approved that it will appraise the management team based on quarterly net assets income rate and reward the management team by
taking quarterly total net profit after tax as the base. The Group withheld management performance award of RMB 35,700,000
(Jan.-Jun. 2016: 43,750,000).
21. Tax payable
Unit: RMB
Item Closing balance Opening balance
Value-added-tax payable 37,988,909 41,919,187
Corporate income tax payable 31,122,623 46,726,185
Individual income tax payable 3,956,884 3,755,374
Urban maintenance and construction tax 2,859,336 3,482,715
Property tax payable 4,223,103 10,998,756
Education surcharge payable 2,334,721 3,351,165
Others 5,475,695 5,359,234
Total 87,961,271 115,592,616
22. Interest payable
Unit: RMB
Item Closing balance Opening balance
Interest payable for long-term borrowings 716,363 4,800,133
Interest for corporate bonds 37,309,995 10,660,000
Interest payable for short-term borrowings 2,897,716 2,289,987
Interest for ultra-short-term financing
32,854,763
bonds
Interest payable for medium-term notes 57,260,622 27,621,021
Total 98,184,696 78,225,904
23. Dividends payable
Unit: RMB
Item Closing balance Opening balance
Common stock dividend 207,533,556
Total 207,533,556
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2017
24. Other account payable
(1) List of other account payable by nature
Unit: RMB
Item Closing balance Opening balance
Interest-free borrowings 626,342,837
Guarantee deposits received from
64,868,546 69,156,801
construction contractors
Accrued cost of sales 40,511,663 47,671,047
Temporary collection of payment for land
39,350,245 28,098,000
transfer
Industrial production scheduling funds 31,000,000
Payable for contracted labour costs 16,551,623 17,467,346
Temporary receipts 13,218,776 14,022,924
Deposit for disabled 4,036,351 3,509,947
Others 8,943,846 8,395,385
Total 844,823,887 188,321,450
24. Other account payable
(1) List of other account payable by nature
Unit: RMB
Item Closing balance Opening balance
Guarantee deposits received from
64,868,546 69,156,801
construction contractors
Accrued cost of sales 40,511,663 47,671,047
Temporary collection of payment for land
39,350,245 28,098,000
transfer
Interest-free borrowings 681,000,000
Payable for contracted labour costs 16,551,623 17,467,346
Temporary receipts 13,218,776 14,022,924
Deposit for disabled 4,036,351 3,509,947
Others 8,943,846 8,395,385
Total 868,481,050 188,321,450
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2017
25. Non-current liabilities due within one year
Unit: RMB
Item Closing balance Opening balance
Long-term borrowing due within 1year 29,340,000
Bonds payable due within 1year 1,000,000,000 1,000,000,000
Long-term accounts payable within one year 101,203,702
Total 1,101,203,702 1,029,340,000
(i)According to the China Securities Regulatory Commission license [2010] No.1369 published by the China Securities Regulatory
Commission, the Company issued the corporate bonds on 20 October 2010, with a par value of RMB2 billion. The Corporate Bonds
include RMB1 billion that will mature in 5 years (“5 year Bonds”) and another RMB1 billion that will mature in 7 years (“7 year
Bonds”). The 7 year Bonds holders have a put option over the Company to repurchase at the end of the fifth year. The Corporate
Bonds carries at fixed interest rate of 5.33% per year, with interest paid annually. The bonds are recognised at the actual amount of
discount bonds, with the actual annual rate of 5.59%. 5-year bonds have been repaid on 19 October 2015, no 7-year bonds shall be
resold by investors, and are matured on 19 October 2017.
(ii)As of June 30, 2017, the Company signed a sell and leaseback agreement with a third-party finance leasing company. As a result
of the Company's failure to transfer the fixed asset-related risks, it constituted a mortgage loan. In which: the amount required to be
repaid within one year was shown as non-current liabilities due within one year - long term payable due within one year".
26. Other current liability
Unit: RMB
Items Closing balance Opening balance
Others 300,000 300,000
Total 300,000 300,000
27. Long-term borrowings
(1) Categories of long-term borrowings
Unit: RMB
Items Closing balance Opening balance
Guaranteed loan 244,000,000 58,660,000
Unsecured loan 180,000,000 180,000,000
Medium-term notes 1,200,000,000 1,200,000,000
Total 1,624,000,000 1,438,660,000
Approved by file No. [2015] MTN225 of Inter Bank Market Trading Association, the Company is entitled to issue medium-term notes
with the limit of RMB 1,200,000,000, which expires on 28 May 2017.
The Company issued medium-term notes of RMB 1,200,000,000 on 14 July 2015 for the first time in 2015. The notes above matured
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2017
on 14 July 2020, with an annual interest rate of 4.94%.
As at 30 June 2017, the interest of long term borrowings varied from 4.51% to 4.94% (31 December 2016: 4.51% to 4.94%).
28. Long term payables
(1) Long-term payables by nature of payment
Unit: RMB
Items Closing balance Opening balance
Interest-free loan 649,823,518 0
Mortgage loan 189,048,152 0
Total 838,871,670 0
On 22 November 2016, the Company received a letter from its shareholder, Jushenghua, stating that to support the Group’s steady
operation and development, Jushenghua, as the shareholder of the Company, would like to offer interest-free borrowings with the total
amount of RMB 2,000,000,000 to the Company or through related parties designated by it. As of the date of this report, the shareholder
has provided RMB 700,000,000 of interest-free loans (amortized cost of RMB 650,000,000).
29. Deferred revenue
Unit: RMB
Items Opening balance Increased this term Decreased this term Closing balance reason
Government grants 422,993,254 12,800,000 14,912,953 420,880,301
Total 422,993,254 12,800,000 14,912,953 420,880,301 --
Government grants are analysed below:
Unit: RMB
Included in
Increase in Related to assets
Item in debt Opening balance non-business Other changes Closing balance
current period or income
income
Tianjin CSG Golden Sun
57,092,011 1,687,446 55,404,565 Related to assets
Project (i)
Dongguan CSG Golden
46,079,250 1,375,500 44,703,750 Related to assets
Sun Project (ii)
Hebei CSG Golden Sun
46,750,000 1,375,000 45,375,000 Related to assets
Project (iii)
Xianning CSG Golden
51,013,417 1,515,250 49,498,167 Related to assets
Sun Project (iv)
Infrastructure
compensation for 43,670,435 2,020,768 41,649,667 Related to assets
Wujiang CSG Glass
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2017
Co., Ltd (v)
Qingyuan Energy-saving
23,259,167 1,235,001 22,024,166 Related to assets
project (vi)
Yichang Silicon products
24,609,375 1,406,250 23,203,125 Related to assets
project (vii)
Yichang CSG silicon
slice auxiliary project 13,890,609 634,323 13,256,286 Related to assets
(viii)
Sichuan energy-saving
12,129,480 827,010 11,302,470 Related to assets
glass project (ix)
Group coating film
experimental project 9,035,040 754,380 8,280,660 Related to assets
(x)
Yichang expert silicon
3,906,547 132,876 3,773,671 Related to assets
project (xi)
Yichang semiconductor
3,666,667 133,334 3,533,333 Related to assets
silicon project (xi)
Shenzhen CSG Display
53,371,082 1,267,239 52,103,843 Related to assets
project (xiii)
Xianning photoelectric
infrastructure 7,800,000 7,800,000 Related to assets
construction fund (xiv)
Related to assets
Others 34,520,174 5,000,000 462,588 85,988 38,971,598
and income
Total 422,993,254 12,800,000 14,826,965 85,988 420,880,301 --
(i)The allowance was granted by Tianjin Municipal Government. The allowance was used for establishing PV power station by
Tianjin CSG Architectural Glass Co., Ltd. The facilities belonged to Tianjin CSG upon completion. 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.
(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.
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2017
(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 a pilot project for strategic emerging industry clusters development, which 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 Silicon 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 Silicon is entitled to the
ownership of the facilities, which will be amortised by 15 years according to the useful life of the converting station.
(viii)It represented the government supporting fund obtained by Yichang Silicon 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 15 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 by 20 years 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 and 14 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 Silicon “Hubei semiconductor silicon preparative technique project laboratory”. The
grant will be amortised and credited to income statement by 15 years
(xiii)It represented the business combinations involving enterprises not under common control and the increase in deferred income
arising from incorporating the deferred income of Shenzhen CSG Display into the consolidated scope.
(xiv) It represented the funds granted by Department of Hubei Xianning High-tech Industrial Park Administrative Committee for
infrastructure construction which will be amortised by 10 years according to the useful life of the production line.
30. Share Capital
Unit: RMB
Changed in the report period (+,-)
Opening Closing
Issuing of new Transferred
balance Bonus shares Others Sub-total balance
shares from reserves
Total of capital 2,075,335,560 2,075,335,560
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2017
shares
The par value of the RMB-denominated ordinary shares is RMB1, and that of domestically listed foreign shares is HKD1.
31. Capital surplus
Unit: RMB
Items Opening balance Increased this term Decreased this term Closing balance
Capital premium 1,345,264,670 1,345,264,670
Other capital surplus -84,562,473 89,251,780 4,689,307
Total 1,260,702,197 89,251,780 1,349,953,977
Other capital reserve increased was mainly attributable to the interest-free loans provided by the shareholder, Shenzhen Jushenghua
Co., Ltd. to the Company. Capital reserve increased of RMB 89,141,412 when interest of the loans was calculated on equity
transactions.
32. Other comprehensive income
Unit: RMB
Occuring in current period
Less: Amount
transferred into
Amount profit and loss in the
Opening Less: After-tax After-tax Closing
Item incurred current period that
balance income attribute to attribute to balance
before recognized into
tax the parent minority
income other
expense company shareholder
tax comprehensive
income in prior
period
II. Other comprehensive income
reclassified into profit and loss in 4,653,971 -1,076,264 -1,076,264 3,577,707
future
Differences on translation of foreign
2,103,971 -1,076,264 -1,076,264 1,027,707
currency financial statements
Finance incentives for energy and
2,550,000 2,550,000
technical transformation
Total of other comprehensive income 4,653,971 -1,076,264 -1,076,264 3,577,707
33. Special reserves
Unit: RMB
Items Opening balance Increased this term Decreased this term Closing balance
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2017
Safety production cost 5,843,473 3,922,869 6,532,682 3,233,660
Total 5,843,473 3,922,869 6,532,682 3,233,660
34. Surplus reserves
Unit: RMB
Items Beginning of term Increased this term Decreased this term End of term
Statutory surplus reserve 760,997,662 760,997,662
Discretionary surplus reserve 127,852,568 127,852,568
Total 888,850,230 888,850,230
35. Retained earnings
Unit: RMB
Items The current period The same period of last year
Retained earnings at the end of last year before
3,576,949,573 3,637,206,565
adjustment
Retained earnings at the beginning of this year
3,576,949,573 3,431,556,565
after adjustment
Add: net profits belonging to equity holders of the
392,992,163 466,883,254
Company
Less: Dividends payable 207,533,556 622,600,668
Retained earnings in the end 3,762,408,180 3,275,839,151
36. Revenue and cost
Unit: RMB
Occurred in current term Occurred in previous term
Item
Revenue Cost Revenue Cost
Revenue from main operations 4,914,535,874 3,730,914,851 4,184,209,383 3,052,534,128
Revenue from other operations 29,801,987 6,599,611 43,956,259 24,284,375
Total 4,944,337,861 3,737,514,462 4,228,165,642 3,076,818,503
37. Tax and surcharge
Unit: RMB
Item Occurred in current term Occurred in previous term
City maintenance and construction tax 15,364,494 12,602,639
Educational surcharge 11,927,211 10,367,308
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2017
Housing property tax 14,797,102 5,421,344
Land use rights 11,043,223 3,273,686
Business tax 2,411,686 1,073,483
Others 6,202,059 747,323
Total 61,745,775 33,485,783
38. Selling Expenses
Unit: RMB
Items Occurred in current term Occurred in previous term
Freight expenses 76,391,481 59,381,190
Employee benefits 49,496,703 43,288,837
Entertainment expenses 5,674,868 5,179,120
Travelling expenses 5,113,500 4,811,124
Vehicle use fee 3,531,901 3,414,236
Rental expenses 3,029,551 2,588,324
General office expenses 1,536,282 2,001,995
Depreciation expenses 482,108 506,576
Others 11,088,337 7,393,429
Total 156,344,731 128,564,831
39. Administrative Expenses
Unit: RMB
Items Occurred in current term Occurred in previous term
Research and development expenses 151,590,181 127,759,895
Employee benefits 135,166,127 113,606,280
Depreciation expenses 31,885,617 26,989,222
Amortisation of intangible assets 19,756,528 16,315,423
General office expenses 12,640,569 10,148,252
Taxation Expenses 17,604,458
Labour unior funds 7,083,212 4,948,671
Entertainment expenses 4,800,751 3,889,174
Travelling expenses 4,486,643 4,446,174
Water and electricity expense 4,529,626 5,086,006
Canteen costs 4,404,253 3,667,235
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2017
Vehicle use fee 2,966,987 2,527,549
Rental expenses 2,457,132 1,403,376
Others 20,786,714 10,444,680
Total 402,554,340 348,836,395
40. Finance Expenses
Unit: RMB
Items Occurred in current term Occurred in previous term
Loan interest 157,228,769 134,008,214
Less: Capitalised interest 14,034,183 6,183,391
Interest expenses 143,194,586 127,824,823
Less: Interest income 4,186,712 3,301,921
Exchange losses 2,109,890 4,217,530
Others 2,256,263 4,612,961
Total 143,374,027 133,353,393
41. Asset impairment loss
Unit: RMB
Items Occurred in current term Occurred in previous term
I. Provision for bad debts 1,108,695 -878,514
2. Provision for inventory depreciation -46,858
Total 1,108,695 -925,372
42. Investment income
Unit: RMB
Items Occurred in current term Occurred in previous term
Long-term equity investment accounted by equity method -14,264,359
Total -14,264,359
43. Other gains
Unit: RMB
Source of other gains Occurred in current term Occurred in previous term
Industry supporting fund 12,600,000.00 N/A
Government awards fund 4,323,546.00 N/A
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2017
Subsidies for research and development 6,479,492.00 N/A
Energy saving subsidy 128,116.00 N/A
Others 143,080.00 N/A
Total 23,674,234.00 N/A
44. Non-operating income
Unit: RMB
Occurred in current Occurred in previous Amount of non-recurring gain and loss
Items
term term included in the report period
Total of gains from disposal of
57,734 248,642 57,734
non-current assets
Incl.：Gain on disposal of fixed assets 57,734 248,642 57,734
Government grants 14,826,965 47,606,029 14,826,965
Compensation income 146,436 462,552 146,436
Funds unpayable 520 171,592 520
Others 997,941 1,549,549 997,941
Total 16,029,596 50,038,364 16,029,596
45. Non-operating expenses
Unit: RMB
Amount of non-recurring
Occurred in previous
Items Occurred in current term gain and loss included in
term
the report period
Total of loss from disposal of non-current assets 129,490 19,984 129,490
Incl. Loss from disposal of fixed assets 129,490 19,984 129,490
Donation 199,999 40,000 199,999
Loss on compensations 407,332
Others 403,103 194,312 403,103
Total 732,592 661,628 732,592
46. Income tax expenses
(1) List of income tax expenses
Unit: RMB
Items Occurred in current term Occurred in previous term
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2017
Current income tax 74,283,293 57,280,962
Deferred income tax 6,169,728 20,562,202
Total 80,453,021 77,843,164
(2) Adjustment process of accounting profit and income tax expense
Unit: RMB
Items Occurred in current term
Total profit 480,667,069
Current income tax expense accounted by tax and relevant regulations 66,102,580
Costs, expenses and losses not deductible for tax purposes 723,999
Influence of deductible temporary difference or deductible losses of
17,012,930
unrecognized deferred income tax assets
Final settlement of the previous year's income tax adjustment -3,386,488
Income tax expenses 80,453,021
47. Other comprehensive income
The details can be found in notes to the financial statements.
48. Items of the cash flow statement
(1)Cash received relating to other operating activities
Unit: RMB
Items Occurred in current term Occurred in previous term
Government grant 23,674,234 22,515,577
Interest income 4,186,712 3,301,921
Others 40,349,756 20,291,438
Total 68,210,702 46,108,936
(2)Cash paid relating to other operating activities
Unit: RMB
Items Occurred in current term Occurred in previous term
Transportation expense 68,348,981 61,146,471
Canteen cost 21,140,169 19,735,042
Office expenses 16,993,639 13,568,857
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2017
R&D fees 26,795,302 19,470,201
Travelling expenses 12,971,903 11,839,397
Entertainment expenses 11,650,156 10,603,096
Vehicle use fee 7,589,416 7,147,877
Repairing fees 9,445,635 6,426,568
Rental expenses 4,103,767 4,439,417
Insurance expenses 6,679,946 4,823,957
Financing Commission 2,256,263 4,612,961
Others 63,287,032 59,101,076
Total 251,262,209 222,914,920
(3)Cash received relating to other investing operating activities
Unit: RMB
Items Occurred in current term Occurred in previous term
Government grants received relating to assets 12,800,000 3,600,000
Collection trusted 11,239,200 11,239,200
Received repayment 14,860,684
Total 24,039,200 29,699,884
(4)Cash paid relating to other investing activities
Unit: RMB
Items Occurred in current term Occurred in previous term
Payment for collection trusted 15,300,000
Payment for deposit and margin 31,475,182 6,464,586
Total 31,475,182 21,764,586
(5)Cash received relating to other financing activities
Unit: RMB
Items Occurred in current term Occurred in previous term
Received interest free loan 1,381,000,000
Received mortgage loan 278,400,000
Received return money from the original
88,567,811
affiliated company Shenzhen CSG Display
Collection of income tax of dividends of 7,289,494
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2017
A-share & B-share
Collection 2,490,239
Received deposit and margin 4,701,291 4,868,673
Total 1,666,591,530 100,725,978
(6)Cash paid relating to other financing activities
Unit: RMB
Items Occurred in current term Occurred in previous term
Cash paid for financing lease of the
original affiliated company Shenzhen 109,125,965
CSG Display
Payment of income tax of dividends of
1,701,507
A-share & B-share
Cash paid for Commission fee 1,750,000
Total 3,451,507 109,125,965
49. Supplement notes of cash flow statement
(1) Supplement notes of cash flow statement
Unit: RMB
Supplementary Info. Amount of this term Amount of last term
1. Net profit adjusted to cash flow of business operation -- --
Net profit 400,214,048 465,301,322
Add: Provisions for assets impairment 1,108,695 -925,372
Depreciation of fixed assets,
480,563,388 413,138,016
gas and petrol depreciation production goods depreciation
Amortisation of intangible assets 19,756,528 16,315,423
Losses on disposal of fixed assets , intangible assets and other
long-term assets 71,756 -228,658
(“-“ for gains)
Finance expenses
143,194,586 127,824,823
(“-“ for gains)
Investment
14,264,359
loss(“-“ for gains)
Decrease in deferred tax assets
11,754,644 21,032,799
(“-“ for increase)
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2017
Increase of deferred income tax liability (“-“ for decrease) -5,584,916 -470,597
Decrease of inventory (“-“ for increase) -152,812,851 -9,920,347
Decrease of operational receivable items (“-“ for increase) -132,167,898 -30,401,660
Increase of operational payable items (“-“ for decrease) 253,791,474 30,790,241
Net cash flow generated by business operation 1,019,889,454 1,046,720,349
2. Major investment and financing operation not involving with
-- --
cash
3. Net change of cash and cash equivalents -- --
Balance of cash at period end 932,050,522 404,710,155
Less: Initial balance of cash 584,566,990 574,744,877
Net increasing of cash and cash equivalents 347,483,532 -170,034,722
(2) Formation of cash and cash equivalents
Unit: RMB
Items Closing balance Opening balance
I. Cash 932,050,522 584,566,990
Incl: Cash on hand 27,530 17,239
Cash at bank without restriction 932,022,992 584,549,751
others without restriction
III. Balance of cash and cash equivalents at th end of the period 932,050,522 584,566,990
50. Assets of ownership or use right restricted
Unit: RMB
Item Ending book value Reason for restriction
It’s the Company’s guarantee deposit for the application of opening letter of
Monetary fund 2,184,679
credit and loan from the bank, which was restricted monetary fund.
Total 2,184,679 --
51. 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 -- -- 40,648,532
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2017
Incl: USD 4,578,142 6.7744 31,014,165
EUR 700 7.7496 5,425
HKD 10,986,291 0.8679 9,535,002
AUD 17,434 5.2099 90,829
JPY 51,421 0.0605 3,111
Accounts receivable -- -- 118,258,690
Incl: USD 16,372,361 6.7744 110,912,922
EUR 946,785 7.7496 7,337,205
HKD 9,866 0.8679 8,563
Short-term borrowings 65,092,500
Incl: HKD 75,000,000 0.8679 65,092,500
Accounts payable 98,782,030
Incl: USD 11,116,217 6.7744 75,305,700
HKD 306 0.8679 266
EUR 1,105,322 7.7496 8,565,803
JPY 246,450,595 0.0605 14,910,261
VIII. Changes in the scope of consolidation
1. The new subsidiary included in the consolidation scope in the period was Zhijiang CSG PV New Energy Co.,
Ltd. (hereinafter referred to as "Zhijiang PV Company").
IX. Interest in other entities
1. Interest in subsidiary
(1) Composition of the Group
Major business Shareholding (%) Way of
Name of subsidiary Place of registration Scope of business
location Direct Indirect acquicition
Development, production and
Chengdu CSG Glass Co., Ltd. Chengdu, the PRC Chengdu, the PRC 75% 25% Establishment
sales of specialized glass
Development, production and
Sichuan CSG Energy Conservation Chengdu, the PRC Chengdu, the PRC sales of specialized glass and 75% 25% Split-off
processed glass
Development, production and
Tianjin Energy Conservation Glass Co. Ltd Tianjin, the PRC Tianjin, the PRC sales of specialized 75% 25% Establishment
energy-efficient glass
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2017
Dongguan CSG Architectural Glass Co., Ltd. Dongguan, the PRC Dongguan, the PRC Glass deep processing 75% 25% Establishment
Production and sales of solar
Dongguan CSG Solar Glass Co., Ltd. Dongguan, the PRC Dongguan, the PRC 75% 25% Establishment
glass
Production and sales of
Dongguan CSG PV-tech Co., Ltd. Dongguan, the PRC Dongguan, the PRC high-tech green cell products 100% Establishment
and modules
Production and sales of High
Yichang CSG Polysilicon Co., Ltd. Yichang, the PRC Yichang, the PRC 75% 25% Establishment
purity silicon materials
Wujiang CSG North-east Architectural Glass Co., Ltd. Wujiang, the PRC Wujiang, the PRC Glass deep processing 75% 25% Establishment
Production and sales of
Hebei CSG Glass Co., Ltd. Yongqing, the PRC Yongqing, the PRC 75% 25% Establishment
specialized glass
Production and sales of
Wujiang CSG Glass Co., Ltd. Wujiang, the PRC Wujiang, the PRC 100% Establishment
specialized glass
Trading and investment
China Southern Glass (Hong Kong) Limited Hong Kong Hong Kong 100% Establishment
holding
Production and sales of
Hebei Panel Glass Co., Ltd. Yongqing, the PRC Yongqing, the PRC 100% Establishment
ultra-thin electronic glass
Production and sales of
Xianning CSG Glass Co Ltd. Xianning, the PRC Xianning, the PRC 75% 25% Establishment
specialized glass
Xianning CSG Energy Conservation Glass Co Ltd. Xianning, the PRC Xianning, the PRC Glass deep processing 75% 25% Split-off
Production and sales of
Qingyuan CSG Energy Saving New Materials Co.,Ltd Qingyuan, the PRC Qingyuan, the PRC 100% Establishment
ultra-thin electronic glass
Shenzhen CSG Display Technology Co., Ltd. Shenzhen, the PRC Shenzhen, the PRC Glass for display device 60.80% Acquisition
Photoelectric glass and
Xianning CSG Photoelectric Glass Co., Ltd. Xianning, the PRC Xianning, the PRC 37.50% 62.50% Acquisition
high-alumina glass
(2)The significant non-fully-owned subsidiaries of the Group
Unit: RMB
Total profit or loss Dividends distributed
Shareholding Minority interest
attributable to minority to minority interests
Subsidiaries of minority as at 30 June
shareholders for the year for the year ended 30
shareholders 2017
ended 30 June 2017 June 2017
Shenzhen CSG Display Technology Co., Ltd. 39.20% 5,787,351 311,685,657
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2017
(3) The major financial information of the significant non-fully-owned subsidiaries of the Group
Unit: RMB
Closing balance Opening balance
Name of
Current Non-current Current Non-current Total Current Non-current Current Non-current Total
Subsidiary Total assets Total assets
assets assets liabilities liabilities liabilities assets assets liabilities liabilities liabilities
Shenzhen
CSG Display
262,179,100 1,347,074,249 1,609,253,349 505,674,968 314,316,352 819,991,320 211,285,238 1,338,686,341 1,549,971,579 541,303,424 233,139,941 774,443,365
Technology
Co., Ltd.
Unit: RMB
Occurred in current term Occurred in previous term
Name of Total Cash flows from
Total comprehensive Cash flows from
Subsidiary Revenue Net profit Revenue Net profit comprehensive operating
income operating activities
income activities
Shenzhen
CSG Display
228,993,498 14,924,574 14,924,574 27,884,582 37,282,745 -4,023,839 -4,023,839 19,571,109
Technology
Co., Ltd.
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2017
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.
(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 recognised assets and liabilities, and future transactions denominated in foreign currencies, primarily with respect to
US dollars and Euro. The Group monitors the scale of foreign currency transactions, foreign currency assets and liabilities, and adjust
settlement currency of export business, to furthest reduce the currency risk.
As at 30 June 2017 the carrying amounts in RMB equivalent of the Group’s assets and liabilities denominated in foreign currencies
are summarized below:
30 June 2017
USD HKD Others Total
Financial assets denominated in foreign currency-
Cash at bank and on hand 31,014,165 9,535,002 99,365 40,648,532
Receivables 110,912,922 8,563 7,337,205 118,258,690
141,927,087 9,543,565 7,436,570 158,907,222
Financial liabilities denominated in foreign
currency-
Short-term borrowings - 65,092,500 - 65,092,500
Payables 75,305,700 266 23,476,064 98,782,030
75,305,700 65,092,766 23,476,064 163,874,530
31 December 2016
USD HKD Others Total
Financial assets denominated in foreign currency-
Cash at bank and on hand 24,360,614 5,551,402 840,393 30,752,409
Receivables 105,742,398 - 6,917,969 112,660,367
130,103,012 5,551,402 7,758,362 143,412,776
Financial liabilities denominated in foreign
currency-
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2017
Short-term borrowings - 67,087,500 - 67,087,500
Payables 74,140,797 275 24,217,998 98,359,070
74,140,797 67,087,775 24,217,998 165,446,570
As at 30 June 2017, if the currency had weakened/strengthened 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 RMB 5,662,818 (31 December 2016: approximately
RMB 4,756,788) lower/ higher for various financial assets and liabilities denominated in USD.
As at 30 June 2017, if the currency had strengthened /weakened by 10% against the HKD while all other variables had been held
constant, the Group’s net profit for the year would have been approximately RMB 4,721,682 (31 December 2016: approximately
RMB 5,230,592) higher/lower for various financial assets and liabilities denominated in HKD.
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 2015, the Group’s long-term interest-bearing debt at variable
rates and fixed rates as illustrated below:
30 June 2017 31 December 2016
Debt at fixed rates 1,570,000,000 1,380,000,000
Debt at variable rates 54,000,000 58,660,000
1,624,000,000 1,438,660,000
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 and
other receivables, etc.
The Group expects that there is no significant credit risk associated with cash at bank since they are 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, the management believes the credit risk should be limited.
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2017
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.
(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.
As at 30 June 2017, the Group had net current liabilities of approximately RMB 3.385 billion and committed capital expenditures of
approximately RMB 390 million. Management will implement the following measures to ensure the liquidation risk limited to a
controllable extent:
(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; and
(c) The Group will closely monitoring 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 2017
Within 1 year 1 to 2 years 2 to 5 years Over 5 years Total
Short-term borrowings 2,439,522,457 - - - 2,439,522,457
Notes payable 114,500,000 - - - 114,500,000
Accounts payable 1,382,500,478 - - - 1,382,500,478
Interest payable 98,184,696 - - - 98,184,696
Dividend payable 207,533,556 207,533,556
Other payables 844,823,887 - - - 844,823,887
Other current liabilities 300,000 - - 300,000
Non-current liabilities due 1,117,193,707 - - - 1,117,193,707
within one year
Long-term borrowings 78,992,500 306,409,062 1,474,047,671 - 1,859,449,233
Long-term payables - 733,909,378 104,962,292 - 838,871,670
6,283,551,281 1,040,318,440 1,579,009,963 - 8,902,879,684
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2017
31 December 2016
Within 1 year 1 to 2 years 2 to 5 years Over 5 years Total
Short-term borrowings 4,043,966,809 - - - 4,043,966,809
Notes payable 20,000,000 - - - 20,000,000
Accounts payable 1,169,869,370 - - - 1,169,869,370
Interest payable 78,225,904 - - - 78,225,904
Other payables 188,321,450 - - - 188,321,450
Other current liabilities 300,000 - - 300,000
Non-current liabilities due 1,068,336,787 - - - 1,068,336,787
within one year
Long-term borrowings 73,188,850 290,439,172 1,287,871,345 - 1,651,499,367
6,642,209,170 290,439,172 1,287,871,345 - 8,220,519,687
XI. Disclosure of fair value
1. Fair value of financial assets and financial liabilities not measured at fair value
The group’s financial assets and financial liabilities measured at amortized cost mainly include: accounts receivable, short-term
borrowings, accounts payable, long term borrowings, bonds payable , long-term payables, ect.
Except for financial liabilities listed below, the carrying amount of the other financial assets and liabilities not measured at fair value
is a reasonable approximation of their fair value.
30 June 2017 31 December 2016
Carrying amount Fair value Carrying amount Fair value
Financial liabilities -
Corporate bonds payable 1,000,000,000 999,500,000 1,000,000,000 1,009,177,000
Medium term notes 1,200,000,000 1,257,000,000 1,200,000,000 1,175,308,800
2,200,000,000 2,256,500,000 2,200,000,000 2,184,485,800
The fair values of payables and medium-term notes are the present value of the contractually determined stream of future cash flows
at the rate of interest applied at that time by the market to instruments of comparable credit status and providing substantially the
same cash flows on the same terms, thereinto bonds payable belongs to Level 1 and medium term notes belong to Level 2.
XII. Related party and related Transaction
1. Parent company of the Company
The Company has no parent company.
2. Subsidiaries of the Company
The information of subsidiaries of the Company can be found in Notes to the financial statement.
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2017
3. Joint venture of the Company
Shenzhen Nanbo Display Technology Co., Ltd. was transferred to the subsidiary of the Company from joint venture on 3 June, 2016.
The Company has no joint venture on 30 June 2017.
4. Other related parties
Name of other related parties Relations between other related parties and the Company
Shenzhen Jushenghua Co. Ltd. The person acting in concert of the Company's largest shareholder
5. Related transaction
(1) Transaction of acquisition of goods, offering and reception of labor service
List of selling goods/offering labor service
Unit: RMB
Related party Contents of related transaction Occurred in this term Occurred in previous term
Shenzhen CSG Display Technology Co., Ltd. sales of goods 9,665,275
6. Others
Commitments in relation to related parties
The commitments in relation to related parties contracted for but not yet necessary to be recognised on the balance sheet by the
Group as at the balance sheet date are as follows:
On 22 November 2016, the Company received a letter from its shareholder, Jushenghua, stating that to support the Group’s steady
operation and development, Jushenghua, as the shareholder of the Company, would like to offer interest-free borrowings with the
total amount of RMB 2,000,000,000 to the Company or through related parties designated by it. For any borrowing drawn, its
repayment date is negotiated by the Company and Jushenghua upon withdrawal.When a borrowing is due, if an extension is needed,
the Company can apply to the actual lender based on the Company’s operation; where the actual lender agrees with the extension
application, the term of the borrowing is extended accordingly. As of 30 June 2017, the shareholder had provided RMB 700,000,000
long-term interest-free loans and RMB 650,000,000 short-term interest-free loans.
XIII. Commitments and contingency
Capital expenditures commitments
Capital expenditures contracted for by the Group at the balance sheet date but are not yet necessary to be recognised on the balance
sheet are as follows:
30 June 2017 31 December 2016
Buildings,machinery and equipment 386,575,774 280,938,401
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2017
XIV. Other significant events
1. Segment information
(1) Definition foundation and accounting policy of segment
To meet operating strategies and requirements of business development, the Group adjusted its operating structure in the period. The
Group’s management allocated resources, evaluated segment performance, updated reporting segment, and disclosed segment
information according to revised operating segments in the period. Segment information of prior year had been restated in
accordance with updated reporting segments.
-Glass segment, being engaged in the production and sales of glass products and silica sand required for the production of glass
-Solar Energy Segment, being engaged in the production and sales of polysilicon and solar modules, as well as construction and
operation of photovoltaic power plants
-Electronic glass and display Segment, being engaged in the production and sales of ultrathin electronic glass and display
products
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 evaluates 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.
(2)Financial information of segment
Unit: RMB
Electronic
Item Glass Solar Energy glass and Others Unallocated Elimination Total
display
Revenue from external
3,206,687,159 1,369,755,550 367,265,891 629,261 4,944,337,861
customers
Inter-segment revenue 18,599,065 18,083,108 198,902 26,666,005 -63,547,080
Interest income 491,062 2,397,326 56,932 3,528,724 -2,287,332 4,186,712
Interest expenses 70,412,931 37,231,830 15,045,705 22,791,452 -2,287,332 143,194,586
Asset impairment reversal 946,289 -62,414 217,114 7,706 1,108,695
Depreciation and
299,606,450 134,711,851 62,922,138 3,079,477 500,319,916
amortization expenses
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2017
Total profit 392,627,615 118,589,867 37,245,148 -773 -64,588,492 -3,206,296 480,667,069
Income tax expenses 52,290,936 13,020,016 15,176,880 -34,811 80,453,021
Net profit 340,336,679 105,569,851 22,068,268 -773 -64,553,681 -3,206,296 400,214,048
Total assets 8,982,177,389 4,952,619,591 2,968,323,479 134,388 1,027,026,766 17,930,281,613
Total liabilities 2,162,476,308 793,195,356 695,646,857 2,502,814 5,865,531,905 9,519,353,240
Additions of non-current
assets other than
92,971,231 404,028,047 222,862,634 1,886,129 721,748,041
long-term equity
investments
(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. 2017 Jan.-Jun. 2016
Mainland 4,453,794,331 3,742,134,566
Hong Kong 159,110,247 46,568,633
Europe 10,469,923 34,282,849
Asia (other than Mainland and Hong Kong) 284,803,871 316,839,177
Australia 23,668,506 19,557,991
North America 9,235,672 64,008,117
Other region 3,255,311 4,774,309
4,944,337,861 4,228,165,642
Total non-current assets 30 June 2017 31 December 2016
Mainland 14,606,514,921 14,392,447,014
Hong Kong 12,563,601 12,551,254
14,619,078,522 14,404,998,268
The Group has a large number of customers, but no revenue from a single customer exceed 10% or more of the Group’s revenue.
XV. Notes to Financial Statements of the Parent Company
1. Other accounts receivable
(1) Other accounts receivable disclosed by category:
Unit: RMB
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2017
Closing balance Openning balance
Bad debt Bad debt
Book balance Book balance
Categories provision provision
Book value Book value
Propor Amou Propor Propor Propor
Amount Amount Amount
tion % nt tion % tion % tion %
Other accounts
receivable
withdrawn bad
debt provision 3,416,531,057 100% 16,511 0% 3,416,514,546 3,863,129,835 100% 8,806 0% 3,863,121,029
according to credit
risks
characteristics
Total 3,416,531,057 100% 16,511 0% 3,416,514,546 3,863,129,835 100% 8,806 0% 3,863,121,029
Other accounts receivable with large amount and were provided bad debt provisions individually at end of period.
□ Applicable √ Non-applicable
Other accounts receivable in the portfolio on which bad debt provisions were provided on aging analysis basis
□ Applicable √ Non-applicable
Other accounts receivable in the portfolio on which bad debt provisions were provided on percentage basis
√ Applicable □ Non-applicable
Unit: RMB
Closing balance
Name of portfolio
Other receivable accounts Bad debt provision proportion%
portfolio 1 825,597 16,511 2%
portfolio 2 3,415,705,460
Total 3,416,531,057 16,511 0%
Explanation for determining the basis of the portfolio:
Other receivable accounts in the portfolio on which bad debt provisions were provided on other basis
□ Applicable √ Non-applicable
(2) Accounts receivable withdraw, reversed or collected during the reporting period
The amount of provision for bad debts during the report period was RMB 7,705. The amount of the reversed or collected part during
the report period was RMB 0.
(3) Other accounts receivable classified by the nature of accounts
Unit: RMB
Nature of accounts Ending book balance Beginning book balance
Others 825,597 423,416
Accounts receivable of related party 3,415,705,460 3,862,706,419
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2017
Total 3,416,531,057 3,863,129,835
(4) Top 5 of the closing balance of the other accounts receivable collated according to the arrears party
Unit: RMB
Proportion of the total Closing
Nature of
Name of the company Closing balance Ages year end balance of the balance of bad
accounts
accounts receivable (%) debt provision
Yichang CSG Polysilicon Co., Ltd. Subsidiary 1,304,538,480 Within 1 year 38% 0
Hebei CSG Glass Co., Ltd. Subsidiary 333,719,030 Within 1 year 10% 0
Qingyuan CSG Energy Conservation Subsidiary
298,547,212 9% 0
New Meterials Co., Ltd. Within 1 year
Dongguan CSG PV-tech Co., Ltd. Subsidiary 226,825,146 Within 1 year 7% 0
Yichang CSG Display Co.,Ltd. Subsidiary 195,317,564 Within 1 year 6% 0
Total -- 2,358,947,432 -- 70%
2. 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
4,805,440,632 15,000,000 4,790,440,632 4,805,440,632 15,000,000 4,790,440,632
subsidiaries
Total 4,805,440,632 15,000,000 4,790,440,632 4,805,440,632 15,000,000 4,790,440,632
(1) Inventment in subsidiaries
Unit: RMB
Provision for Closing balance
Opening Increase in Decrease in
Invested company Closing balance impairment of the of impairment
balance the term the term
current period provision
Chengdu CSG Glass Co., Ltd. 146,679,073 146,679,073
Sichuan CSG Energy Conservation 115,290,583 115,290,583
Tianjin Energy Conservation Glass Co. Ltd 242,902,974 242,902,974
Dongguan CSG Architectural Glass Co., Ltd. 193,618,971 193,618,971
Dongguan CSG Solar Glass Co., Ltd. 349,446,826 349,446,826
Yichang CSG Polysilicon Co., Ltd. 632,958,044 632,958,044
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2017
Wujiang CSG North-east Architectural Glass
251,313,658 251,313,658
Co., Ltd.
Hebei CSG Glass Co., Ltd. 261,998,368 261,998,368
China Southern Glass (Hong Kong) Limited 85,742,211 85,742,211
Wujiang CSG Glass Co., Ltd. 562,179,564 562,179,564
Hebei Panel Glass Co., Ltd. 243,062,801 243,062,801
Jiangyou CSG Mining Development Co.
100,725,041 100,725,041
Ltd.
Xianning CSG Glass Co Ltd. 177,041,818 177,041,818
Xianning CSG Energy Conservation Glass Co
161,281,576 161,281,576
Ltd.
Qingyuan CSG Energy Saving New Materials
300,185,609 300,185,609
Co.,Ltd
Shenzhen CSG Financial Leasing Co.,
133,500,000 133,500,000
Ltd.
Shenzhen CSG PV Energy Co., Ltd. 100,000,000 100,000,000
Shenzhen CSG Display Technology Co., Ltd. 542,027,830 542,027,830
Xianning CSG Photoelectric Glass Co., Ltd. 38,250,000 38,250,000
Others(ii) 167,235,685 167,235,685 15,000,000
Total 4,805,440,632 4,805,440,632 15,000,000
(2) Other notes
As at June 30, 2017, long-term equity investment in subsidiaries contained the restricted stocks granted by the Company to the
Employees of subsidiaries of the company, and the Company did not charge any fees for the restricted stocks which was deemed as
an increase of costs of Long-term equity investment for subsidiaries by RMB 109,035,321 (31 December 2016:
RMB109,035,321).
The subsidiaries which have made provision for impairment were basically closed down in the previous year, and the provision for
impairment for the long-term equity investment of them had been made by the Company according to the recoverable amount.
3. Operating income and operating costs
Unit: RMB
Occurred in this term Occurred in previous term
Item
Income Costs Income Costs
Main business 0 0 0 0
Other business 27,295,266 0 1,077,394 60,334
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2017
Total 27,295,266 0 1,077,394 60,334
4. Investment income
Unit: RMB
Item Occurred in this term Occurred in previous term
Long-term equity investment accounted by cost method 389,430,562
Long-term equity investment accounted by equity method 9,850,045
Total 399,280,607
XVI. 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 for impairment
-71,756
of assets)
Governmental subsidy reckoned into current gains/losses (not including the subsidy enjoyed in quota
38,501,199
or ration according to national standards, which are closely relevant to enterprise’s business)
Other non-operating income and expenditure except for the aforementioned items 541,795
Less: Impact on income tax 5,814,362
Impact on minority shareholders’ equity (post-tax) 1,109,957
Total 32,046,919 --
Explain reasons for the extraordinary profit (gain)/loss defined by Q&A Announcement No.1 on Information Disclosure for
Companies Offering Their Securities to the Public --- Extraordinary Profit/loss, and the items defined as recurring profit (gain)/loss
according to the lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies
Offering Their Securities to the Public --- Extraordinary Profit/loss.
□Applicable √ Not applicable
2. Return on equity 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 shareholders of the listed company(RMB) 4.94% 0.19 0.19
Net profit attributable to shareholders of the listed company after
4.54% 0.17 0.17
deducting non-recurring gains and losses(RMB)
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2017
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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