CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2019
Financial Report of Semi-annual Report 2019
(I) Auditors’ Report
Whether the Semi-annual Report has been audited or not
□ Yes √ No
(II) Financial Statements
All figures in the Notes to the Financial Statements are in RMB.
1. Consolidated Balance Sheet
Prepared by CSG Holding Co., Ltd.
June 30, 2019
Unit: RMB
Item Ending balance Beginning balance
Current assets
Cash at bank and on hand 1,895,457,290 2,226,447,720
Notes receivable 656,498,454 719,375,448
Accounts receivable 780,075,797 592,233,312
Advances to suppliers 111,724,191 91,176,675
Other receivables 204,039,125 207,424,295
Inventories 733,850,928 600,139,750
Assets classified as held for sale 45,983,520
Other current assets 136,195,974 445,327,449
Total current assets 4,517,841,759 4,928,108,169
Non-current assets
Fixed assets 10,301,649,825 9,930,843,775
Construction in progress 1,940,864,955 2,559,179,442
Intangible assets 1,030,390,575 1,035,731,324
Development expenditure 70,573,426 74,549,257
Goodwill 376,720,156 376,720,156
Long-term prepaid expenses 11,821,826 12,746,609
Deferred tax assets 141,735,767 139,529,518
Other non-current assets 55,588,781 56,825,934
Total non-current assets 13,929,345,311 14,186,126,015
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2019
TOTAL ASSETS 18,447,187,070 19,114,234,184
Current liabilities
Short-term borrowings 2,665,570,348 2,922,679,590
Notes payable 280,009,274 105,150,000
Accounts payable 1,056,501,804 1,209,859,263
Advances from customers 228,877,586 206,631,008
Employee benefits payable 185,107,411 266,459,151
Taxes payable 96,414,967 111,967,365
Other payables 356,979,812 552,751,187
Of which: interest payable 73,933,818 73,612,703
Dividend payable 3,221,496 2,846,362
Current portion of non-current liabilities 714,186,697 819,448,742
Other current liabilities 300,000 300,000
Total current liabilities 5,583,947,899 6,195,246,306
Non-current liabilities
Long-term borrowings 2,292,462,500 2,315,700,000
Long term payable 291,363,152 529,910,796
Deferred income 536,895,424 601,825,780
Deferred tax liabilities 31,806,065 22,118,840
Total non-current liabilities 3,152,527,141 3,469,555,416
Total liabilities 8,736,475,040 9,664,801,722
Shareholders’ equity
Share capital 3,108,196,163 2,863,277,201
Capital surplus 723,817,763 1,095,339,421
Less: Treasury shares 137,277,563 277,180,983
Other comprehensive income 5,360,395 5,080,234
Special reserve 8,235,251 6,068,600
Surplus reserve 924,305,375 924,305,375
Undistributed profits 4,722,400,089 4,486,264,723
Total equity attributable to shareholders of parent
9,355,037,473 9,103,154,571
company
Minority shareholders' equity 355,674,557 346,277,891
Total shareholders' equity 9,710,712,030 9,449,432,462
TOTAL LIABILITIES AND SHAREHOLDERS’
18,447,187,070 19,114,234,184
EQUITY
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2019
Legal Representative:Chen Lin Principal in charge of accounting:Wang Jian Principal of the financial department:Wang Wenxin
2. Balance Sheet of the Parent Company
Unit: RMB
Item Ending balance Beginning balance
Current assets
Cash at bank and on hand 976,552,224 1,700,726,151
Advances to suppliers 661,266 438,167
Other receivables 3,720,204,400 2,912,516,245
Other current assets 77,586 300,000,000
Total current assets 4,697,495,476 4,913,680,563
Non-current assets
Long-term receivables 1,200,000,000 1,200,000,000
Long-term equity investments 4,983,474,657 4,964,696,831
Fixed assets 18,464,068 20,926,071
Intangible assets 778,321 879,146
Other non-current assets 2,755,138 732,038
Total non-current assets 6,205,472,184 6,187,234,086
TOTAL ASSETS 10,902,967,660 11,100,914,649
Current liabilities
Short-term borrowings 2,050,000,000 2,000,000,000
Bills payable 170,000,000
Accounts payable 236,346 261,024
Employee benefits payable 23,480,388 41,096,020
Taxes payable 1,997,669 1,099,231
Other payables 1,097,014,451 1,668,587,218
Of which: interest payable 12,815,747 41,572,125
Dividend payable 3,221,496 2,846,362
Total current liabilities 3,342,728,854 3,711,043,493
Non-current liabilities
Long-term borrowings 2,000,000,000 2,000,000,000
Deferred income 183,567,304 184,642,520
Total non-current liabilities 2,183,567,304 2,184,642,520
Total liabilities 5,526,296,158 5,895,686,013
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2019
Shareholders’ equity
Share capital 3,108,196,163 2,863,277,201
Capital surplus 868,645,077 1,240,166,735
Less:Treasury shares 137,277,563 277,180,983
Surplus reserve 938,850,735 938,850,735
Undistributed profits 598,257,090 440,114,948
Total shareholders' equity 5,376,671,502 5,205,228,636
TOTAL LIABILITIES AND SHAREHOLDERS’
10,902,967,660 11,100,914,649
EQUITY
3. Consolidated Income Statement
Unit: RMB
Item Balance of this period Balance of last period
I. Total revenue 4,888,237,578 5,471,169,598
Incl. Business income 4,888,237,578 5,471,169,598
II. Total business cost 4,526,773,571 5,070,075,982
Incl: Business cost 3,671,376,825 4,099,496,754
Tax and surcharge 56,687,997 71,930,546
Sales expense 172,503,399 172,217,254
Administrative expenses 292,862,355 374,512,817
R & D expenses 174,276,136 166,041,185
Financial expenses 159,066,859 185,877,426
Of which: interest expense 171,031,605 203,531,507
Interest income 14,923,375 23,033,418
Plus: Other income 107,755,413 21,863,800
Asset impairment loss (“- “for loss) -3,765,670 -3,653,609
Income on disposal assets (“- “for loss) 370,969 -567,830
III. Operational profit (“- “for loss) 465,824,719 418,735,977
Plus: non-operational income 3,666,315 2,595,795
Less: non-operational expenditure 6,293,227 878,551
IV. Total profit (“- “for loss) 463,197,807 420,453,221
Less: Income tax expenses 76,458,740 61,371,104
V. Net profit (“- “for net loss) 386,739,067 359,082,117
(I) Classification by business continuity
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2019
1. Net income from continuing operations (“-” for net
386,739,067 359,082,117
loss)
(II) Classification by ownership
1.Attributable to shareholders of parent company 377,342,401 352,837,153
2.Minority shareholder gains and losses 9,396,666 6,244,964
VI. Other comprehensive income net after tax 280,161 692,018
Other comprehensive income net after tax attributable
280,161 692,018
to shareholders of parent company
Other comprehensive income items which will be
280,161 692,018
reclassified subsequently to profit or loss
Differences on translation of foreign currency financial
280,161 692,018
statements
VII. Total comprehensive income 387,019,228 359,774,135
Total comprehensive income attributable to
377,622,562 353,529,171
shareholders of parent company
Total comprehensive income attributable to minority
9,396,666 6,244,964
shareholders
VIII. Earnings per share:
(I) Basic earnings per share 0.12 0.12
(II) Diluted earnings per share 0.12 0.11
Legal Representative:Chen Lin Principal in charge of accounting:Wang Jian Principal of the financial department:Wang Wenxin
4. Income Statement of the Parent Co.
Unit: RMB
Item Balance of this period Balance of last period
I. Revenue 38,156,685 30,709,068
Less: Business cost
Tax and surcharge 484,868 246,465
Sales expense
Administrative expense 63,631,618 97,258,248
R& D expenditure 355,838 4,923
Financial expenses 64,544,835 29,932,558
Of which: interest expense 74,386,747 48,681,431
Interest income 12,738,082 21,459,907
Plus: Other income 1,466,247 991,880
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2019
Asset impairment loss (“- “for loss) 390,105,325 231,537,606
Asset impairment loss (“- “for loss) 94,314 46,118
Income on disposal assets (“- “for loss) 2,440
II. Operating profit 300,805,412 135,844,918
Add: Non-operating revenue 2,403,225 123,450
Less: Non-operating expenses 3,859,460 277
III. Total profit (“- “for loss) 299,349,177 135,968,091
Less: Income tax (expenses)/revenue
IV. Net profit (“- “for loss) 299,349,177 135,968,091
(I) Net profit for continuing operations(“- “for loss) 299,349,177 135,968,091
V. Total comprehensive income 299,349,177 135,968,091
VI. 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. Cash flows from operating activities
Cash received from sales of goods or rendering of
5,267,136,350 5,795,543,089
services
Refund of taxes and surcharges 7,189,735 14,619,913
Cash received relating to other operating activities 69,328,688 63,866,925
Sub-total of cash inflows 5,343,654,773 5,874,029,927
Cash paid for goods and services 3,243,706,052 3,670,547,749
Cash paid to and on behalf of employees 706,947,717 723,605,247
Payments of taxes and surcharges 310,470,632 404,939,607
Cash paid relating to other operating activities 314,547,907 310,373,236
Sub-total of cash outflows 4,575,672,308 5,109,465,839
Net cash flows from/(used in) operating activities 767,982,465 764,564,088
II. Cash flows from investing activities
Net cash received from disposal of fixed assets,
355,765 3,466,136
intangible assets and other long-term assets
Cash received relating to other investing activities 36,323,006 3,725,277
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2019
Sub-total of cash inflows 36,678,771 7,191,413
Cash paid to acquire fixed assets, intangible assets and
283,862,176 268,526,891
other long-term assets
Cash paid relating to other investing activities 44,089,887 58,691,979
Sub-total of cash outflows 327,952,063 327,218,870
Net cash flows (used in)/from investing activities -291,273,292 -320,027,457
III. Cash flows from financing activities
Cash received from borrowings 1,498,543,308 2,870,654,472
Cash received relating to other financing activities 500,154,376 16,276,534
Sub-total of cash inflows 1,998,697,684 2,886,931,006
Cash repayments of borrowings 1,833,149,550 1,777,250,000
Cash payments for interest expenses and distribution of
314,316,388 293,602,183
dividends or profits
Cash payments relating to other financing activities 808,767,638 362,001,673
Sub-total of cash outflows 2,956,233,576 2,432,853,856
Net cash flows (used in)/from financing activities -957,535,892 454,077,150
4. Effect of foreign exchange rate changes on cash
-59,328 -113,600
and cash equivalents
5. Net increase/(decrease) in cash and cash
-480,886,047 898,500,181
equivalents
Add: Cash and cash equivalents at beginning of
2,225,126,913 2,459,753,165
current period
6. Cash and cash equivalents at end of current
1,744,240,866 3,358,253,346
period
6. Cash Flow Statement of the Parent Co.
Unit: RMB
Item Balance of this period Balance of last period
I. Cash flows from operating activities
Cash received relating to other operating activities 22,806,175 22,667,417
Sub-total of cash inflows 22,806,175 22,667,417
Cash paid to and on behalf of employees 69,731,706 63,635,591
Payments of taxes and surcharges 2,061,399 1,057,736
Cash paid relating to other operating activities 14,959,674 15,743,250
Sub-total of cash outflows 86,752,779 80,436,577
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2019
Net cash flows from/(used in) operating activities -63,946,604 -57,769,160
II. Cash flows from investing activities
Net cash received from disposal of fixed assets,
2,440
intangible assets and other long-term assets
Sub-total of cash inflows 2,440
Cash paid to acquire fixed assets, intangible assets and
2,887,626 4,544,893
other long-term assets
Cash paid for investing activities 10,000,000 36,750,000
Other cash paid relating to investing activities
Sub-total of cash outflows 12,887,626 41,294,893
Net cash flows (used in)/from investing activities -12,887,626 -41,292,453
III. Cash flows from financing activities
Cash received from borrowings 1,300,000,000 2,190,000,000
Cash received relating to other financing activities 125,399,471
Sub-total of cash inflows 1,300,000,000 2,315,399,471
Cash repayments of borrowings 1,250,000,000 1,140,000,000
Cash payments for interest expenses and distribution of
242,330,883 164,279,306
dividends or profits
Other cash paid relating to financing activities 604,806,391
Sub-total of cash outflows 2,097,137,274 1,304,279,306
Net cash flows (used in)/from financing activities -797,137,274 1,011,120,165
4. Effect of foreign exchange rate changes on cash
1,963 -1,253,410
and cash equivalents
5. Net increase/(decrease) in cash and cash
-873,969,541 910,805,142
equivalents
Add: Cash and cash equivalents at beginning of
1,699,514,334 1,680,672,390
current period
6. Cash and cash equivalents at end of current
825,544,793 2,591,477,532
period
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2019
7. Statement of Change in Owners’ Equity (Consolidated)
Amount of the current period
Unit: RMB
The Current Period
Owners’ Equity Attributable to the Parent Company
Other Minority Total
Item
Capital Less: treasury comprehe Special Surplus Undistributed shareholders' shareholders'
Share capital Subtotal
surplus share nsive reserves reserve profits equity equity
income
I. Balance at the end of
2,863,277,201 1,095,339,421 277,180,983 5,080,234 6,068,600 924,305,375 4,486,264,723 9,103,154,571 346,277,891 9,449,432,462
the previous year
Plus: change of
accounting policy
Correction of errors in
previous periods
II. Balance at the
beginning of current 2,863,277,201 1,095,339,421 277,180,983 5,080,234 6,068,600 924,305,375 4,486,264,723 9,103,154,571 346,277,891 9,449,432,462
year
III. Amount of change
in current term(“- “for 244,918,962 -371,521,658 -139,903,420 280,161 2,166,651 236,135,366 251,882,902 9,396,666 261,279,568
decrease)
(I) Total amount of the
280,161 377,342,401 377,622,562 9,396,666 387,019,228
comprehensive income
(II) Capital paid in and
-37,644,324 -88,958,372 -139,903,420 13,300,724 13,300,724
reduced by owners
1. Common shares
-37,644,324 -88,958,372 -139,903,420 13,300,724 13,300,724
invested by the
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2019
shareholders
(III) Profit distribution -141,207,035 -141,207,035 -141,207,035
1. Appropriations to
surplus reserves
2. Appropriations to
owners (or -141,207,035 -141,207,035 -141,207,035
shareholders)
(IV) Internal
carry-forward of
282,563,286 -282,563,286
owners’ equity
1.Capital reserve
transferred to capital (or
282,563,286 -282,563,286
share capital)
2.Surplus reserve
transferred to capital (or
share capital)
(V) Specific reserve 2,166,651 2,166,651 2,166,651
1. Withdrawn for the
3,646,882 3,646,882 3,646,882
period
2. Used in the period 1,480,231 1,480,231 1,480,231
IV. Balance at the end
3,108,196,163 723,817,763 137,277,563 5,360,395 8,235,251 924,305,375 4,722,400,089 9,355,037,473 355,674,557 9,710,712,030
of this term
Amount of the previous period
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2019
Unit: RMB
The Previous Period
Owners’ Equity Attributable to the Parent Company
Other Minority Total
Item
Capital Less: treasury comprehe Special Surplus Undistributed shareholders' shareholders'
Share capital Subtotal
surplus share nsive reserves reserve profits equity equity
income
I. Balance at the end of
2,484,147,547 1,306,381,765 417,349,879 1,948,943 3,224,938 920,592,332 4,159,642,227 8,458,587,873 321,035,238 8,779,623,111
the previous year
Plus: change of
accounting policy
Correction of errors in
previous periods
II. Balance at the
beginning of current 2,484,147,547 1,306,381,765 417,349,879 1,948,943 3,224,938 920,592,332 4,159,642,227 8,458,587,873 321,035,238 8,779,623,111
year
III. Amount of change
in current term(“- “for 379,129,654 -211,042,344 -140,168,896 3,131,291 2,843,662 3,713,043 326,622,496 644,566,698 25,242,653 669,809,351
decrease)
(I) Total amount of the
3,131,291 452,965,935 456,097,226 19,242,653 475,339,879
comprehensive income
(II) Capital paid in and
6,507,523 161,579,787 -140,168,896 308,256,206 6,000,000 314,256,206
reduced by owners
1. Common shares
6,000,000 6,000,000
invested by the owner
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2019
2. Amounts of
share-based payments
6,507,523 161,579,787 -140,168,896 308,256,206 308,256,206
recognized in owners’
equity
(III) Profit distribution 3,713,043 -126,343,439 -122,630,396 -122,630,396
1. Appropriations to
3,713,043 -3,713,043
surplus reserves
2. Distribution to the
-122,630,396 -122,630,396 -122,630,396
owner (or shareholder)s
(IV) Internal
carry-forward of 372,622,131 -372,622,131
owners’ equity
1.Capital reserve
transferred to capital (or 372,622,131 -372,622,131
share capital)
(V) Specific reserve 2,843,662 2,843,662 2,843,662
1. Withdrawn for the
8,319,885 8,319,885 8,319,885
period
2. Used in the period 5,476,223 5,476,223 5,476,223
IV. Balance at the end
2,863,277,201 1,095,339,421 277,180,983 5,080,234 6,068,600 924,305,375 4,486,264,723 9,103,154,571 346,277,891 9,449,432,462
of this term
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2019
8. Statement of Change in Owners’ Equity (Parent Co.)
Amount of the current period
Unit: RMB
The Current Period
Other Total
Item Less: treasury Special Surplus Undistributed
Share capital Capital surplus comprehensive shareholders'
share reserves reserve profits
income equity
I. Balance at the end of the previous year 2,863,277,201 1,240,166,735 277,180,983 938,850,735 440,114,948 5,205,228,636
Plus: change of accounting policy
Correction of errors in previous periods
II. Balance at the beginning of current year 2,863,277,201 1,240,166,735 277,180,983 938,850,735 440,114,948 5,205,228,636
III. Amount of change in current term(“- “for
244,918,962 -371,521,658 -139,903,420 158,142,142 171,442,866
decrease)
(I) Total amount of the comprehensive income 299,349,177 299,349,177
(II) Capital paid in and reduced by owners -37,644,324 -88,958,372 -139,903,420 13,300,724
1. Amounts of share-based payments recognized in
-37,644,324 -88,958,372 -139,903,420 13,300,724
owners’ equity
(III) Profit distribution -141,207,035 -141,207,035
1. Appropriations to surplus reserves
2. Appropriations to owners (or shareholders) -141,207,035 -141,207,035
(IV) Internal carry-forward of owners’ equity 282,563,286 -282,563,286
1.Capital reserve transferred to capital (or share
282,563,286 -282,563,286
capital)
IV. Balance at the end of this term 3,108,196,163 868,645,077 137,277,563 938,850,735 598,257,090 5,376,671,502
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2019
Amount of the previous period
Unit: RMB
The Previous Period
Other Total
Item Less: treasury Special Surplus Undistributed
Share capital Capital surplus comprehensive shareholders'
share reserves reserve profits
income equity
I. Balance at the end of the previous year 2,484,147,547 1,451,209,079 417,349,879 935,137,692 529,327,954 4,982,472,393
Plus: change of accounting policy
Correction of errors in previous periods
II. Balance at the beginning of current year 2,484,147,547 1,451,209,079 417,349,879 935,137,692 529,327,954 4,982,472,393
III. Amount of change in current term(“- “for
379,129,654 -211,042,344 -140,168,896 3,713,043 -89,213,006 222,756,243
decrease)
(I) Total amount of the comprehensive income 37,130,433 37,130,433
(II) Capital paid in and reduced by owners 6,507,523 161,579,787 -140,168,896 308,256,206
2. Others 6,507,523 161,579,787 -140,168,896 308,256,206
(III) Profit distribution 3,713,043 -126,343,439 -122,630,396
1. Appropriations to surplus reserves 3,713,043 -3,713,043
2. Appropriations to owners (or shareholders) -122,630,396 -122,630,396
(IV) Internal carry-forward of owners’ equity 372,622,131 -372,622,131
1.Capital reserve transferred to capital (or share
372,622,131 -372,622,131
capital)
IV. Balance at the end of this term 2,863,277,201 1,240,166,735 277,180,983 938,850,735 440,114,948 5,205,228,636
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2019
III. Basic Information of the Company
CSG Holding Co Ltd (the “Company”) was incorporated in September 1984, known as China South Glass Company, as a joint
venture enterprise by Hong Kong China Merchants Shipping Co., LTD (香港招商局轮船股份有限公司), Shenzhen Building
Materials Industry Corporation (深圳建筑材料工业集团公司), China North Industries Corporation (中国北方工业深圳公司) and
Guangdong International Trust and Investment Corporation (广东国际信托投资公司). The Company was registered in Shenzhen,
Guangdong Province of the People's Republic of China and its headquarters is located in Shenzhen, Guangdong Province of the
People's Republic of China. The Company issued RMB-denominated ordinary shares (“A-share”) and foreign shares (“B-share”)
publicly in October 1991 and January 1992 respectively, and was listed on Shenzhen Stock Exchange on February 1992. As at June
30, 2019, the registered capital was RMB 3,108,196,163, with nominal value of RMB 1 per share.
The Company and its subsidiaries (collectively referred to as the “Group”) are mainly engaged in the manufacture and sales of flat
glass, specialized glass, engineering glass, energy saving glass, silicon related materials, polysilicon and solar components and
electronic-grade display device glass and the construction and operation of photovoltaic plant etc.
The financial statements were authorized for issue by the Board of Directors on August 21, 2019.
Details on the major subsidiaries included in the consolidated scope in current year were stated in the Note.
IV. Basis of the preparation of financial statements
1. Basis of preparation
The financial statements are prepared in accordance with the Accounting Standards for Business Enterprises - Basic Standard, and
the specific accounting standards and other relevant regulations issued by the Ministry of Finance on 15 February 2006 and in
subsequent periods (hereafter collectively referred to as “the Accounting Standard for Business Enterprises” or “CAS”), and
Information Disclosure Rule No. 15 for Companies with Public Traded Securities - Financial Reporting General Provision issued by
China Security Regulatory Commission.
2. Going concern
As at June 30, 2019, the Group current liabilities exceed current assets about RMB 1,066 million and committed capital expenditure
of about RMB 595 million. The directors of the Company have made an assessment that the Group has been in continuous business
for many years and expects to continue to generate sufficient cash flow from operating activities in the next 12 months. From January
to June 2019, the net cash inflow from operation activities is approximately RMB 768 million; and the Group has maintained good
relationship with banks, so the Group has been able to successfully renew the bank facilities upon the expiry. As at June 30, 2019, the
Group had unutilised banking facilities of approximately RMB 6.2 billion, among which long-term banking facilities were about
RMB 290 million. In addition, the shareholder of the Group or other appointed related parties are willing to provide the Group with
RMB 2 billion interest-free loan. The Group also has other sources of financing, such as issuing short-term bonds, ultra-short-term
financing bonds and medium-term notes. The directors of the Company believe that the above credit line and shareholder support are
sufficient to meet the funding needs of the Group for repayment of debts and capital commitments. Therefore, the financial
statements for the report period will continue to be prepared on a going concern basis.
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2019
V. Significant accounting policies and accounting estimates
The Group determines its specific accounting policies and estimates according to manufacturing and operation feature. It mainly
reflected in provision for bad debts of receivables, inventory costing method, amortisation of property, plant and equipment and
intangible assets, criteria for determining capitalised development expenditure, and timing for revenue recognition.
Please see the Note for the key judgements adopted by the Group in applying important accounting policies.
1. Statement of compliance with the Accounting Standards for Business Enterprises
The financial statements of the Company for the first half year of 2019 truly and completely present the financial position as of June
30, 2019 and the operating results, cash flows and other information for the first half year of 2019 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). The economic environment of subsidiaries, Hong Kong Southern Glass Trading Limited
and China Southern Glass (Hong Kong) Limited, determines their recording currency is Hong Kong dollar. The recording currency in
this report is Renminbi (RMB).
5. Business combinations
(a)Business combinations involving entities under common control
The consideration paid and net assets obtained by the absorbing party in a business combination are measured at book value. The
difference between book value of the net assets obtained from the combination and book value of the consideration paid for the
combination is treated as an adjustment to capital surplus (share premium). If the capital surplus (share premium) is not sufficient to
absorb the difference, the remaining balance is adjusted against retained earnings. Costs directly attributable to the combination are
included in profit or loss in the period in which they are incurred. Transaction costs associated with the issue of equity or debt
securities for the business combination are included in the initially recognised amounts of the equity or debt securities.
(b) Business combinations involving entities not under common control
The cost of combination and identifiable net assets obtained by the acquirer in a business combination are measured at fair value at
the acquisition date. Where the cost of the combination exceeds the acquirer’s interest in the fair value of the acquiree’s identifiable
net assets, the difference is recognised as goodwill; where the cost of combination is lower than the acquirer’s interest in the fair
value of the acquiree’s identifiable net assets, the difference is recognised in profit or loss for the current period. Costs directly
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2019
attributable to the combination are included in profit or loss in the period in which they are incurred. Transaction costs associated
with the issue of equity or debt securities for the business combination are included in the initially recognised amounts of the equity
or debt securities.
6. Preparation of consolidated financial statements
The consolidated financial statements comprise the financial statements of the Company and all of its subsidiaries.
Subsidiaries are consolidated from the date on which the Group obtains control and are de-consolidated from the date that such
control ceases. For a subsidiary that is acquired in a business combination involving enterprises under common control, it is included
in the consolidated financial statements from the date when it, together with the Company, comes under common control of the
ultimate controlling party. The portion of the net profits realised before the combination date presented separately in the consolidated
income statement.
In preparing the consolidated financial statements, where the accounting policies and the accounting periods of the Company and
subsidiaries are inconsistent, the financial statements of the subsidiaries are adjusted in accordance with the accounting policies and
the accounting period of the Company. For subsidiaries acquired from business combinations involving enterprises not under
common control, the individual financial statements of the subsidiaries are adjusted based on the fair value of the identifia ble 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 statement s under
equity, net profits and total comprehensive income respectively. Unrealised profits and losses resulting from the sales of assets by the
Company to its subsidiaries are fully eliminated against net profit attributable to shareholders of the parent company. Unrealised
profits and losses resulting from the sales of assets by a subsidiary to the Company are eliminated and allocated between net profit
attributable to shareholders of the parent company and non-controlling interests in accordance with the allocation proportion of the
parent company in the subsidiary. Unrealised profits and losses resulting from the sales of assets by one subsidiary to another are
eliminated and allocated between net profit attributable to shareholders of the parent company and non-controlling interests in
accordance with the allocation proportion of the parent in the subsidiary.
After the control over the subsidiary has been gained, whole or partial minority equities of the subsidiary owned by minority
shareholders are acquired from the subsidiary’s minority shareholders. In the consolidated financial statements, the subsidiary's assets
and liabilities are reflected with amount based on continuous calculation starting from the acquisition date or consolidation date.
Capital surplus is adjusted according to the difference between newly increased long-term equity investment arising from acquisition
of minority equity and the share of net assets calculated based on current shareholding ratio that the parent company is entitled to.
The share is subject to continuous calculation starting from the acquisition date or consolidation date. If the capital surplus (capital
premium or share capital premium) is not sufficient to absorb the difference, the remaining balance is adjusted against retai ned
earnings.
If the accounting treatment of a transaction which considers the Group as an accounting entity is different from that considers the
Company or its subsidiaries as an accounting entity, it is adjusted from the perspective of the Group.
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2019
7. Cash and cash equivalents
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 transaction
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 curr ent 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 date. Among the shareholders’ equity items, the items other than “undistributed profits” are translated at the spot exchange rates
of the transaction dates. The income and expense items in the income statements of overseas operations are translated at the spot
exchange rates of the transaction dates. The differences arising from the above translation are presented separately in the
shareholders’ equity. The cash flows of overseas operations are translated at the spot exchange rates on the dates of the cash flows.
The effect of exchange rate changes on cash is presented separately in the cash flow statement.
9. Financial instrument
A financial instrument is a contract that forms a financial asset of one party and forms a financial liability or equity instrument of the
other party.
(a) Classification of financial assets
According to the business model of the financial assets under management and the characteristics of the contractual cash flow of the
financial assets, the Company divides the financial assets into the following three categories:
1) Financial assets measured at amortized cost.
2) Financial assets measured at fair value through other comprehensive income.
3) Financial assets at fair value through profit or loss.
Financial liabilities are classified into the following two categories:
1) Financial liabilities at fair value through profit or loss.
2) Financial liabilities measured at amortized cost.
(b) Basis for confirmation of financial instruments
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2019
1) Financial assets measured at amortized cost
The financial assets of the Company that are subject to the following conditions are classified as financial assets measured at
amortized cost:
①The business model for managing the financial assets is aimed at collecting contractual cash flows.
②The contractual terms of the financial assets stipulate that the cash flow generated on a specific date is only the payment of the
principal and the interest based on the outstanding principal amount.
2) Financial assets measured at fair value through changes in other comprehensive income
The financial assets of the Company that meet the following conditions are classified into financial assets measured at fair value and
whose changes are included in other comprehensive income:
①The business model for managing the financial assets is aimed at both the collection of contractual cash flows and the sale of the
financial assets.
②The contractual terms of the financial assets stipulate that the cash flow generated on a specific date is only the payment of the
principal and the interest based on the outstanding principal amount.
At initial recognition, the Company may designate non-tradable equity instrument investments as financial assets measured at fair
value through other comprehensive income, presented as other equity instrument investment projects, and recognised dividend
income when the conditions are met ( Once the designation is made, it cannot be revoked).
3) Financial assets measured at fair value through profit or loss
The Company classifies financial assets other than financial assets measured at amortized cost and financial assets measured at fair
value through changes in other comprehensive income as financial assets at fair value through profit or loss.
If the contingent consideration of the Company in a business combination not under the same control constitutes financial assets, the
financial assets are classified as financial assets measured at fair value through profit or loss.
At the time of initial recognition, if the accounting mismatch can be eliminated or significantly reduced, the Company can designate
the financial assets as financial assets measured at fair value through profit or loss (the designation cannot be revoked once it is
made).
4) Financial liabilities measured at fair value through profit or loss
This category includes transactional financial liabilities (including derivatives that are financial liabilities) and financi al liabilities
that are designated at fair value through profit or loss.
If the contingent consideration of the Company in a business combination not under the same control constitutes financial liabilities,
the financial liabilities are accounted for at fair value through profit or loss.
In the initial recognition, in order to provide more relevant accounting information, the Company classifies financial liabilities that
meet one of the following conditions as financial liabilities measured at fair value through profit or loss (the designation cannot be
revoked once it is made):
①can eliminate or significantly reduce accounting mismatches.
②According to the enterprise risk management or investment strategy specified in the official written documents, manage and
evaluate the financial liability portfolio or financial assets and financial liabilities based on fair value, and report to key management
personnel on the basis of this. .
5) Financial liabilities measured at amortized cost
Except for the following items, the Company classifies financial liabilities as financial liabilities measured at amortized cost:
①Financial liabilities measured at fair value through profit or loss.
②Financial assets transfer does not meet the conditions for derecognition or financial liabilities arising from the transfer of
transferred financial assets.
③Financial guarantee contracts that do not fall into ① and ② categories, and loan commitments that are not subject to the market
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2019
interest rate for loans that are not in ① category of this article.
(c) Measurement methods for financial instruments
1) Financial assets measured at amortized cost
The initial measurement is carried out at fair value, and the related transaction expense is included in the initial recognition amount;
the interest calculated using the effective interest method during the holding period is included in the current profit and loss. When
recovering or disposing, the difference between the price obtained and the book value of the financial asset is included in t he current
profit and loss.
2) Financial assets measured at fair value through changes in other comprehensive income
The initial measurement is carried out at fair value, and the related transaction costs are included in the current profit and loss.
Subsequent measurement measured at fair value. The discount or premium is amortized using the effective interest method and
recognised as interest income or expense. Except for impairment loss or gains and exchange gains and losses recognized as current
gains and losses, changes in fair value of such financial assets are recognised in other comprehensive income until the financial assets
are derecognised, the accumulated gain or loss is transferred to profit or loss.
3) Financial assets measured at fair value through profit or loss
The initial measurement is carried out at fair value, and the related transaction costs are included in the current profit and loss. The
financial assets are subsequently measured at fair value, and changes in fair value are recognised in profit or loss. When the
confirmation is terminated, the difference between the fair value and the initially recorded amount is recognized as investment
income, and the gains and losses from changes in fair value are adjusted at the same time.
4) Financial liabilities measured at fair value through profit or loss
The initial measurement is carried out at fair value, and the related transaction costs are included in the current profit and loss. The
financial liabilities are subsequently measured at fair value, and changes in fair value are recognised in profit or loss.When the
confirmation is terminated, the difference between the fair value and the initial entry amount is recognized as investment income, and
the gains and losses from changes in fair value are adjusted at the same time.
5) Financial liabilities measured at amortized cost
The initial measurement is based on fair value, and the related transaction costs are included in the initial recognition amount. Interest
calculated by the effective interest method during the period of holding is included in the current profit and loss. When the
confirmation is terminated, the difference between the consideration paid and the book value of the financial liability is recognised in
profit or loss.
(d) Confirmation basis and measurement method for transfer of financial assets
In the event of a financial asset transfer, the Company assesses the extent to which it retains the risks and rewards of ownership of
financial assets and treats them separately as follows:
1) If almost all risks and rewards of ownership of financial assets are transferred, the financial assets are derecognised and the rights
and obligations arising or retained in the transfer are separately recognized as assets or liabilities.
2) If almost all risks and rewards in the ownership of financial assets are retained, the financial assets shall continue to be recognized.
3) If there is neither transfer nor retention of almost all risks and rewards of ownership of financial assets (that is, other cases in
addition to (1) and (2) of this article), then according to whether they retain control over financial assets, they are dealt with as
follows:
①If the control over the financial assets is not retained, the financial assets are derecognised and the rights and obligations arising or
retained in the transfer are separately recognized as assets or liabilities.
②If the control over the financial assets is retained, the relevant financial assets shall continue to be recognized according to the
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2019
extent to which they continue to be involved in the transferred financial assets, and the related liabilities are recognized accordingly.
When judging whether the transfer of financial assets satisfies the conditions for derecognition of the above-mentioned financial
assets, the principle of substance over form is adopted. The Company divides the transfer of financial assets into the overall transfer
and partial transfer of financial assets:
1) If the overall transfer of financial assets meets the conditions for derecognition, the difference between the following t wo amounts
is included in the current profit and loss:
① The book value of the transferred financial assets on the date of termination confirmation.
② The sum of the consideration received due to the transfer and the accumulated gains from changes in fair value that were
originally included in other comprehensive income.
2) If the financial assets are partially transferred and the transferred part as a whole meets the conditions for derecognition, the
overall book value of the financial assets before the transfer will be apportioned between the derecognition portion and the
continuation confirmation portion according to their respective fair values on the transfer date. And the difference between the
following two amounts is included in the current profit and loss:
① The book value of the derecognition part on the date of termination confirmation.
② The sum of the amount of the derecognised portion of the derecognised portion and the amount of the derecognised portion of the
cumulative amount of the fair value that is directly recognised in other comprehensive income originally (financial assets involving
transfers are classified as financial assets measured at fair value through other comprehensive income).
If the transfer of financial assets does not meet the conditions for derecognition, the financial assets continue to be recognized and the
consideration received is recognized as a financial liability.
(e) Method for determining the fair value of financial assets and financial liabilities
Fair value refers to the price at which a market participant can receive by selling an asset or paid for transferring a liability in an
orderly transaction on the measurement day.
1) Financial assets or financial liabilities in an active market, the fair value of which is determined by quoted prices in active markets;
quotes in active markets include the quotes of related assets or liabilities which can be easily and regularly obtained from exchanges,
traders, brokers, industry groups, pricing agencies or regulators, and can represent market transactions that actually and frequently
occur on the basis of fair trade.
2) Financial assets or financial liabilities that do not exist in an active market adopt valuation techniques to determine their fair value.
At the time of valuation, the Company adopts valuation techniques with adequate availability of data and other information support,
as well as applicable in the current circumstances, select an input value that is consistent with the characteristics of the asset or
liability considered by the market participant in the transaction of the relevant asset or liability, and use the relevant observable input
values as much as possible. When the relevant observable input value cannot be obtained or is not feasible, the unobservable input
value is used.
(f) Provision for impairment of financial assets
1) The Company confirms loss provision based on expected credit losses for financial assets measured at amortized cost, debt
instrument investments at fair value through other comprehensive income and financial guarantee contracts. The expected credit loss
refers to the weighted average of credit losses of financial instruments that are weighted by the risk of default. Credit loss refers to
the difference between all contractual cash flows receivable from the contract and all cash flows expected to be received by the
Company at the original actual interest rate, and the present value of all cash shortages.Among them, financial assets purchased or
originated by the Company that have suffered credit impairment should be discounted according to the actual interest rate of the
financial assets adjusted by credit.
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2019
On each balance sheet day, the Company measures the expected credit losses of financial instruments at different stages. If the credit
risk has not increased significantly since the initial recognition, the financial instrument is at the first stage, and the Company
measures the provision for the loss according to the expected credit loss within the next 12 months; if the credit risk has increased
significantly since the initial confirmation but impairment of the credit has not yet occurred, the financial instrument is at the second
stage, the Company measures the provision for the loss according to the expected credit loss of the financial instrument for the entire
duration; if the credit impairment has taken place since the initial recognition, the financial instrument is at the third stage and the
Company provides reserve for the expected credit loss of the financial instrument for the entire duration. For financial instruments
with lower credit risk on the balance sheet day, the Company assumes that its credit risk has not increased significantly since the
initial recognition, and measures the provision for the loss according to the expected credit losses in the next 12 months.
For the financial instrument at the first stage or the second stage or with lower credit risk, the Company calculates the interest income
based on the book balance without deduction of the provision for the impairment and the actual interest rate. For the financial
instrument at the third stage, the Company calculates the interest income according to the book balance less the amortized cost after
provision for the impairment and the actual interest rate.
2. Confirmation methods for credit losses of various types of financial assets:
(1) Notes receivable and accounts receivable:
Regardless of whether there exists a significant financing component, the Company considers all reasonable and evidence-based
information, including forward-looking information, to estimate the expected credit losses of the aforesaid receivables in a single or
combined manner and to adopt the simplified model of the expected credit losses, always measures provision for loss based on
expected credit losses for the entire duration. Provision method is as follows:
(a) At the end of the reporting period, the Company conducts separate impairment testing on the receivables if there is objective
evidence proving that such receivables have experienced impairment. Loss for impairment is recognized and provision for bad debt is
made based on the difference of the present value of the estimated future cash flows lower than their carrying amount.
(b) When the information of the expected credit loss of a single financing asset cannot be assessed with reasonable cost, the
Company divides the receivables portfolio according to the credit risk characteristics and calculates the expected credit losses on a
portfolio basis. For receivables classified as risk portfolios, the Company calculates the expected credit losses with reference to the
historical experience of credit loss with consideration of the present situation and the prediction of the future economic condition by
using the impairment provision model. The Company counts the provision for loss made or reversed to the current profit and loss
(2) Other receivables:
(a) For other receivables whose credit risk has not increased significantly since the initial recognition, the Company measures the
provision for the loss according to the expected credit loss within the next 12 months.
(b) For other receivables whose credit risk has increased significantly since the initial recognition, the Company measures the l oss
preparation according to the amount of expected credit loss corresponding to the entire duration of the financial instrument;
(c) Purchase or source of other receivables in which credit has been impaired, the Company measures loss provision based on t he
amount of expected credit loss for the entire duration of the life.
For other receivables, the Company is unable to obtain sufficient evidence of a significant increase in credit risk at a reas onable cost
at the individual instrument level, and it is feasible to assess whether the credit risk is significantly increased on a portfolio basis, so
the Company classifies other receivables according to the type of financial instruments, credit risk rating, initial confirmation date,
and remaining contract period as common risk characteristics, and considers whether the credit risk is significantly increased on a
portfolio basis,
(i) Other receivables formed by non-operating low-risk businesses are assessed for credit losses individually based on the nature of
the business. After the credit loss assessment is performed individually, if the credit loss is not recognized, it will perform a credit
loss assessment again including in a portfolio with similar credit risk characteristics.
(ii) The expected credit losses are measured on a portfolio basis. The accrual method determined by the combination of credit risk
characteristics is consistent with the accounts receivable.
(iii) For other receivables with mortgage collateral guarantee, the original value is deducted from the recoverable value of the
collateral as the expected credit loss of the risk exposure.
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2019
(g) Offset of financial assets and financial liabilities
Financial assets and financial liabilities are presented separately in the balance sheet and are not offset. However, if the following
conditions are met, the net amount offset by each other is listed in the balance sheet:
1) The Company has a statutory right to offset the confirmed amount, and such legal right is currently enforceable;
2) The Company plans to settle on a net basis or realize the financial assets and pay off the financial liabilities at the same time.
10. Receivables
Receivables include notes receivable, accounts receivable and other receivables. The Group's accounts receivable from the sal e of
goods or the provision of labor services shall be deemed as the initial recognition amount based on the fair value of the contract or
agreement receivable from the purchaser or the labor acceptor.
For the impairment of notes receivable and accounts receivable, refer to the above-mentioned financial instruments for the
recognition of impairment of financial assets, and estimate the expected credit losses individually or on a portfolio basis. For the
impairment of other receivables, refer to the financial instrument's provisions on impairment.
(a) Accounts receivable with significant individual amounts and separate provision for bad debts
For accounts receivable with significant individual amount, the impairment test is carried out separately. When there is objective
evidence that the Group will not be able to recover the amount based on the original terms of the accounts receivable, the provision
for bad debts is made based on the difference between the present value of the estimated future cash flows of the accounts receivable
and its book value.
The criterion for determining the individual amount is: the individual amount exceeds RMB 20 million.
(b) Accounts receivable that are not significant but have individual provision for bad debts
When there is objective evidence that the Group will not be able to recover the amount in accordance with the original terms of the
accounts receivable, provision for bad debts is made based on the difference between the present value of the estimated future cash
flows of the accounts receivable and its book value.
(c) Accounts receivable prepared for bad debts on a portfolio basis
Accounts receivable that are not separately withdrawn for impairment are classified into several portfolios based on credit risk
characteristics. Determine the provision for bad debts that should be accrued based on the current situation. Based on the actual loss
rate of the accounts receivable portfolio with similar credit risk characteristics in previous years, the provision for bad debts accrued
is determined according to the current situation.
The basis for determining the portfolio is as follows:
Portfolio 1 All receivables from non-related parties that are not individually withdrawn for
impairment
Portfolio 2 Associated party portfolio
In the portfolio, the percentage of provision for bad debts using the percentage of balance method is as follows:
Percentage of provision for accounts receivable (%)
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2019
Portfolio 1 2%
Portfolio 2 2%
If the Group transfers the accounts receivable to the financial institution without recourse, the difference between book value of
transferred accounts receivable by transaction amount and the related taxes and fees is charged to the current profit and loss.
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. Assets classified as held for sale
A non-current asset or a disposal group is classified as held for sale when all of the following conditions are satisfied: (1) the non-current
asset or the disposal group is available for immediate sale in its present condition subject 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
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2019
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.
(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.
(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
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2019
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
(a) 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 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.
(b) Depreciation methods
Fixed assets are depreciated using the straight-line method to allocate the cost of the assets to their estimated residual values over
their estimated useful lives. For the fixed assets that have been provided for impairment loss, the related depreciation charge is
prospectively determined based upon the adjusted carrying amounts over their remaining useful lives.
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2019
The estimated useful lives, the estimated net residual values expressed as a percentage of cost and the annual depreciation rates of
fixed assets are as follows:
Estimated net residual
Categories Depreciation methods Period of depreciation Annual depreciation rate
value
Buildings straight-line method 20 to 35 years 5% 2.71%~4.75%
Machinery and equipment straight-line method 8 to 20 years 5% 4.75%~11.88%
Motor vehicles and others straight-line method 5 to 8 years 0% 12.50%~20.00%
The estimated useful life, the estimated net residual value of a fixed asset and the depreciation method applied to the asset are
reviewed, and adjusted as appropriate at each year-end.
(c)Book value of a fixed asset is reduced to the recoverable amount when the recoverable amount is below book value (Note 2 (18)).
(d) Disposal
A fixed asset is derecognized on disposal or when no future economic benefits are expected from its use or disposal. The amount of
proceeds from disposals on sale, transfer, retirement or damage of a fixed asset net of its carrying amount and related taxes and
expenses is recognized in profit or loss for the current period.
15. Construction in progress
Construction in progress is recorded at actual cost. Actual cost comprises construction cost, installation cost, borrowing costs eligible
for capitalised condition and necessary expenditures incurred for its intended use. Actual cost also includes net of trial production
cost and trial production income before construction in progress is put into production.
Construction in progress is transferred to fixed assets when the assets are ready for their intended use, and depreciation begins from
the following month.
Book value of construction in progress is reduced to the recoverable amount when the recoverable amount is below book value.
16. Borrowing costs
The borrowing costs that are directly attributable to the acquisition and construction of an asset that needs a substantially long period
of time for its intended use commence to be capitalised and recorded as part of the cost of the asset when expenditures for the asset
and borrowing costs have been incurred, and the activities relating to the acquisition and construction that are necessary to prepare
the asset for its intended use have commenced. The capitalisation of borrowing costs ceases when the asset under acquisition or
construction becomes ready for its intended use and the borrowing costs incurred thereafter are 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 an asset qualifying for capitalisation, the amount of
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2019
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 an asset qualifying for capitalisation, the amount of
borrowing costs eligible for capitalisation is determined by applying the weighted average effective interest rate of general
borrowings, to the weighted average of the excess amount of cumulative expenditures on the asset over the amount of specific
borrowings. The effective interest rate is the rate at which the estimated future cash flows during the period of expected duration of
the borrowings or applicable shorter period are discounted to the initial amount of the borrowings.
17. Intangible assets
(1) Valuation method, service life and impairment test
Intangible assets, mainly including land use rights, patents and proprietary technologies, exploitation rights and others, are measured
at cost.
(a) Land use rights
Land use rights are amortised on the straight-line basis over their approved use period of 30 to 70 years. If the acquisition costs of the
land use rights and the buildings located thereon cannot be reasonably allocated between the land use rights and the buildings, all of
the acquisition costs are recognised as fixed assets.
(b) Patents and proprietary technologies
Patents are amortised on a straight-line basis over the estimated use life.
(c) Exploitation rights
Exploitation rights are amortised on a straight-line basis over permitted exploitation periods 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 yea r-end, with
adjustment made as appropriate.
(e) Impairment of intangible assets
Book value of intangible assets is reduced to the recoverable amount when the recoverable amount is below book value.
(2) Internal research and development expenditure accounting policy
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 acti vities
can form an intangible asset at end of the project.
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2019
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;
The management has approved the budget for the development of manufacturing technique;
There are research and analysis of pre-market research explaining that products manufactured with such technique are capable
of marketing;
There is sufficient technical and capital to support the development of manufacturing technique and subsequent mass
production; and the expenditure on manufacturing technique development can be reliably gathered.
Other development expenditures that do not meet the conditions above are 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 amou nt of a
group of assets to which the asset belongs is determined. A group of assets is the smallest group of assets that is able to generate
independent cash inflows.
Goodwill that is separately presented in the financial statements is tested at least annually for impairment, irrespective of whether
there is any indication that it may be impaired. In conducting the test, book value of goodwill is allocated to the related asset groups
or groups of asset groups which are expected to benefit from the synergies of the business combination. If the result of the test
indicates that the recoverable amount of an asset group or group of asset groups, including the allocated goodwill, is lower than its
carrying amount, the corresponding impairment loss is recognised. The impairment loss is first deducted from book value of goodwill
that is allocated to the asset group or group of asset groups, and then deducted from book values of other assets within the asset
groups or groups of asset groups in proportion to book values of assets other than goodwill.
Once the above asset impairment loss is 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
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2019
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 wages or salaries, bonuses, allowances and subsidies, staff welfare, medical care, work injury
insurance, maternity insurance, housing funds, labour union funds, employee education funds and paid short-term leave, etc. The
employee benefit liabilities are recognised in the accounting period in which the service is rendered by the employees, with a
corresponding charge to the profit or loss for the current period or the cost of relevant assets. Employee benefits which are
non-monetary benefits shall be measured at fair value.
(2) 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.
(3) Basic pensions
The Group’s employees participate in the basic pension plan set up and administered by local authorities of Ministry of Human
Resource and Social Security. Monthly payments of premiums on the basic pensions are calculated according to prescribed bases and
percentage by the relevant local authorities. When employees retire, local labour and social security institutions have a dut y to pay
the basic pension insurance 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.
(4) 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, loss 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
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2019
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.
Book value of provision is reviewed at each balance sheet date and adjusted to reflect the current best estimate.
The provisions expected to be paid within one year since the balance sheet date are classified as current liabilities.
22. Share-based payments
Share-based payments are divided into equity-settled and cash-settled payments. The term "equity-settled share-based payment"
refers to a transaction in which an enterprise grants shares or other equity instruments as a consideration in return for services.
Equity-settled share-based payment The Group’s stock option plan is the equity-settled share-based payment in exchange of
employees' services and is measured at the fair value of the equity instruments at grant date. The equity instruments are exercisable
after services in vesting period are completed or specified performance conditions are met. In the vesting period, the services
obtained in current period are included in relevant cost and expenses at the fair value of the equity instruments at grant date based on
the best estimate of the number of exercisable equity instruments, and capital surplus is increased accordingly. If the subsequent
information indicates the number of exercisable equity instruments differs from the previous estimate, an adjustment is made and, on
the exercise date, the estimate is revised to equal the number of actual vested equity instruments. The Group determines the fair value
of stock options using option pricing model, which is Black-Scholes option pricing model (B-S model).
In the period at which performance conditions and term of service are met, the relevant cost and expenses of equity-settled payment
should be recognized, and capital surplus is increased accordingly. Before the exercise date, the accruing amounts of equity-settled
payments on balance sheet date reflect the part of expired waiting period and optimal estimation for the number of the Company final
vested equity instruments.
If the non-market conditions and term of service are not met so that share-based payment fail to exercise, the costs and expenses on
this portion should not be recognized. If the share-based payment agreement sets out the market conditions and term of non-vesting,
as long as performance conditions and term of service are met, it is should be regard as exercisable right, no matter the mar ket
conditions and non-vesting conditions are meet or not.
If the terms of equity-settled payment are modified, at least the service is confirmed in accordance with the unmodified terms. In
addition, the increase of the fair value of the authorized equity instruments, or the beneficial changes to the employees on the
modification date, the increase of service is confirmed.
If the equity-settled payment is cancelled, the cancellation date shall be deemed as an expedited exercise, and the unconfirmed
amount shall be confirmed immediately. If the employee or other party is able to choose to meet the non-vesting conditions but not
satisfied in the waiting period, equity-settled payment should be cancelled. But if a new equity instrument is granted, and the new
equity instrument is confirm to replace the old equity instrument which is canceled in the authorization date of the new equity
instrument, the new equity instrument should be disposed by using the same conditions and terms of the old equity instrument for
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2019
modifications.
23. Revenue
The amount of revenue is determined in accordance with the fair value of the consideration received or receivable for the sales 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 probably 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) Sales of goods
The Group mainly sells flat and engineering glass, products related to solar energy, and electronic glass and displays. For domestic
sales, the Group delivers the products to a certain place specified in the contract. When the buyer takes over the goods, the Group
recognises revenue. For export sales, the Group recognises 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 recognised 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 recognised on a time-proportion basis using the effective interest method.
24. Government grants
Government grants are transfers of monetary or non-monetary assets from the government to the Group at nil consideration,
including tax refund and financial subsidies, etc.
A government grant is recognized when there is a reasonable assurance that the grants will be received and the Group will comply
with all attached conditions. Monetary government grants are measured at the amounts received or receivable. Non-monetary
government grant are measured at fair value, if the fair value cannot be reliably obtained, it is measured at nominal amount.
The government grants related to assets refer to government grant obtained by enterprises and used for purchase and construct ion of
long-term assets or formation of long-term asset in other ways. The government grants related to income refer to grants other than
those related to assets.
For government grants related to income, where the grant is a compensation for related expenses or losses to be incurred by the
Group in the subsequent periods, the grant is recognized as deferred income, and included in profit or loss over the periods in which
the related costs are recognized; where the grant is a compensation for related expenses or losses already incurred by the Group, the
grant is recognized immediately in profit or loss for the current period. The company uses the same method of presentation for
similar government grants.
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2019
The ordinary activity government grants should be counted into operating profits; the government grants which not belong to
ordinary activities should be counted into non-operating income.
25. Deferred tax assets and deferred tax liabilities
Deferred tax assets and deferred tax liabilities are calculated and recognized based on the differences arising between the tax bases of
assets and liabilities and their carrying amounts (temporary differences). Deferred tax asset is recognized for the deductible losses
that can be carried forward to subsequent years for deduction of the taxable profit in accordance with the tax laws. No deferred tax
liability is recognized for a temporary difference arising from the initial recognition of goodwill. No deferred tax asset or deferred tax
liability is recognized for the temporary differences resulting from the initial recognition of assets or liabilities due to a transaction
other than a business combination, which affects neither accounting profit nor taxable profit (or deductible loss). At the balance sheet
date, deferred tax assets and deferred tax liabilities are measured at the tax rates that are expected to apply to the period when the
asset is realized or the liability is settled.
Deferred tax assets are only recognized for deductible temporary differences, deductible losses and tax credits to the extent that it is
probable that taxable profit will be available in the future against which the deductible temporary differences, deductible losses and
tax credits can be utilized.
Deferred tax liabilities are recognized for temporary differences arising from investments in subsidiaries and associates, except where
the Group is able to control the timing of reversal of the temporary difference, and it is probable that the temporary difference will
not reverse in the foreseeable future. When it is probable that the temporary differences arising from investments in subsidi aries and
associates will be reversed in the foreseeable future and that the taxable profit will be available in the future against which the
temporary differences can be utilized, the corresponding deferred tax assets are recognized.
Deferred tax assets and liabilities are offset when:
The deferred taxes are related to the same tax payer within the Group and the same taxation authority;
That tax payer within the Group has a legally enforceable right to offset current tax assets against current tax liabilities.
26. Leases
(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 a lease other than a finance lease.
27. Other important accounting policies and accounting estimates
The Group continually Estimates the critical accounting estimates and key assumptions applied based on historical experience and
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2019
other factors, including expectations of future events that are believed to be reasonable.
The critical accounting estimates and key assumptions that have a significant risk of possibly causing a material adjustment to book
values of assets and liabilities within the next accounting year are outlined below:
(a) Income tax
The Group is subject to Income tax in numerous jurisdictions. There are some transactions and events for which the ultimate t ax
determination is uncertain during the ordinary course of business. Significant judgement is required from the Group in determining
the provision for Income tax in each of these jurisdictions. Where the final identified outcome of these tax matters is different from
the initially-recorded amount, such difference will impact the income tax expenses and deferred income tax in the period in which
such determination is finally made.
(b) Deferred income tax
Estimates on deferred tax assets are based on estimates on amount of taxable income and applicable tax rate for every year.
Realisation of deferred income tax is subject to sufficient taxable income that is possible to be obtained by the Group in the future.
Change of the future tax rate as well as the reversed time of temporary difference might have effects on tax expense (income) and the
balance of deferred tax assets or liabilities. Those estimates may also cause significant adjustment on deferred tax.
(c) Impairment of long-term assets (excluding goodwill)
Long-term assets at the balance sheet date should be subject to impairment testing if there are any indications of impairment.
Management determines whether the long-term assets impaired or not by evaluating and analysing following aspects: (1) whether the
event affecting assets impairment occurs; (2) whether the expected obtainable present value of future cash flows is lower than the
asset’s carrying amount by continually using the assets or disposal; and (3) whether the assumptions used in expected obtainable
present value of future cash flows are appropriate.
Various assumptions, including the discount rate and growth rate applied in the method of present value of future cash flow, are
required in evaluating the recoverable amount of assets. If these assumptions cannot be conformed, the recoverable amount should be
modified, and the long-term assets may be impaired accordingly.
(d) The useful life of fixed assets
Management estimates the useful life of fixed assets, based on historical experiences on using fixed assets that have similar
properties and functions. When there are differences between actually useful life and previously estimation, management will adjust
estimation to useful life of fixed assets. The fixed assets would be written off or written down when fixed assets been disposed or
became redundant. Thus, the estimated result based on existing experience may be different from the actual result of the next
accounting period, which may cause major adjustment to book value of fixed assets on balance sheet.
(e) Goodwill impairment
Goodwill impairment reviews are undertaken annually or more frequently if events or changes in circumstances indicate a potential
impairment. For the purpose of impairment testing, goodwill acquired in a business combination is allocated to each of the
cash-generating units (“CGUs”), or groups of CGUs, and future cash flow from each CGU or CGUs is forcasted and discounted with
appropriate discount rate.
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2019
28. Significant accounting policies and changes in accounting estimates
(1) Important accounting policy changes
√ Applicable □Not applicable
Details can be found on the Company's announcement of accounting policy changes.
(2) Changes in important accounting estimates
□Applicable √ Not applicable
(3) Adjustment of items related to the first implementation of the financial statements at the beginning of
the year for the first time implementation of the new financial instruments guidelines, new income
standards, new lease standards
□Applicable √ Not applicable
(4) Explanation of comparative data before retrospective adjustment for the first time implementation of
the new financial instrument guidelines, new lease criteria
□Applicable √ Not applicable
29. Others
(1) Safety production costs
According to relevant regulations of the Ministry of Finance and National Administration of Work Safety, a subsidiary of the Group
which is engaged in producing and selling polysilicon appropriates safety production costs on following basis:
(a) 4% for revenue below RMB10 million (inclusive) of the year;
(b) 2% for the revenue between RMB10 million to RMB100 million (inclusive) of the year;
(c) 0.5% for the revenue between RMB100 million to RMB1 billion (inclusive) of the year;
(d) 0.2% for the revenue above RMB1 billion of the year.
The safety production costs are mainly used for the overhaul, renewal and maintenance of safety facilities. The safety production
costs are charged to costs of related products or profit or loss when appropriated, and safety production costs in equity account are
credited correspondingly. When using the special reserve, if the expenditures are expenses in nature, the expenses incurred are offset
against the special reserve directly when incurred. If the expenditures are capital expenditures, when projects are completed and
transferred to fixed assets, the special reserve should be offset against the cost of fixed assets, and a corresponding accumulated
depreciation are recognized. The fixed assets are no longer be depreciated in future.
(2) Segment information
The Group identifies operating segments based on the internal organization structure, management requirements and internal
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2019
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
revenue 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 applicable to the Group are set out below:
Tax item Tax basis Tax rate
Taxable value-added amount (Tax payable is calculated
Value-added tax (“VAT”) using the taxable sales amount multiplied by the applicable 6%-16%
tax rate less deductible VAT input of the current period)
City maintenance and construction tax VAT paid 1%-7%
Educational surcharge VAT paid 3%-5%
Enterprise income tax Taxable income 0%-25%
2. Tax incentives
The main tax incentives the Group is entitled to are as follows:
Tianjin CSG Energy Conservation Glass Co., Ltd. (“Tianjin Energy Conservation”) passed review on a high and new tech enterprise
in 2018 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 2018.
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. For the review of its high and new tech enterprise status was under processing, the income tax rate of 15% was
provisionally applied during the report period.
Wujiang CSG East China Architectural Glass Co., Ltd. (“Wujiang CSG Engineering”) passed review on a high and new tech
enterprise in 2017 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 2017.
Dongguan CSG Solar Glass Co., Ltd. (“Dongguan CSG Solar”) passed review on a high and new tech enterprise in 2017 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 2017.
Yichang CSG polysilicon Co., Ltd. (“Yichang CSG polysilicon”) passed review on a high and new tech enterprise in 2017 and
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2019
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 2017.
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. For the review of its high and new tech enterprise status was under processing, the income tax rate of 15% was provisionally
applied during the report period.
Hebei Panel Glass Co., Ltd. (“Hebei Panel”) 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. For the
review of its high and new tech enterprise status was under processing, the income tax rate of 15% was provisionally applied during
the report period.
Wujiang CSG Glass Co., Ltd. (“Wujiang CSG”) was recognised as a high and new tech enterprise in 2017, 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 2017.
Xianning CSG Glass Co Ltd. (“Xianning CSG”) was recognised as a high and new tech enterprise in 2017, 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 2017.
Xianning CSG Energy-Saving Glass Co., Ltd. (“Xianning CSG Energy-Saving”) was recognised as a high and new tech enterprise in
2018, 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 2018.
Yichang CSG Photoelectric Glass Co., Ltd. (“Yichang CSG Photoelectric”) was recognised as a high and new tech enterprise in 2018,
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 2018.
Yichang CSG Display Co., Ltd (“Yichang CSG Display”) was recognised as a high and new tech enterprise in 2018, 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 2018.
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. For the review of its high and new tech enterprise status was under processing, the
income tax rate of 15% was provisionally applied during the report period.
Hebei CSG Glass Co Ltd. (“Hebei CSG”) was recognised as a high and new tech enterprise in 2018, 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 2018.
Shenzhen CSG Applied Technology Co Ltd. (“Shenzhen Technology”) was recognised as a high and new tech enterprise in 2018, and
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2019
obtained the Certificate of High and New Tech Enterprise, and the period of validity was three years. It applies to 15% tax r ate for
three years since 2018.
Sichuan CSG Energy Conservation Glass Co., Ltd. (“Sichuan CSG Energy Conservation”) obtains enterprise income tax preferential
treatment for Western Development, and temporarily calculates enterprise income tax at a tax rate of 15% for current year.
Chengdu CSG Glass Co., Ltd. (“Chengdu CSG”) obtains enterprise income tax preferential treatment for Western Development, and
temporarily calculates enterprise income tax at a tax rate of 15% for current year.
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”), Zhangzhou CSG Kibing PV Energy Co., Ltd. (“Zhangzhou CSG”), Heyuan CSG Kibing PV Energy
Co., Ltd. (“Heyuan CSG”), Shaoxing CSG Kibing PV Energy Co., Ltd. (“Shaoxing CSG”) Xinning CSG PV Energy Co.,
Ltd.(“Xianning CSG PV Energy”) and Zhanjiang CSG New Energy Co., Ltd. (“Zhanjiang CSG PV Energy””),are public
infrastructure project specially supported by the state in accordance with the Article 87 in Implementing Regulations of the Law of the
People's Republic of China on Enterprise Income Tax, and can enjoy the tax preferential policy of “three-year exemptions and
three-year halves”, that is, starting from the tax year when the first revenue from production and operation occurs, the enterprise
income tax is exempted from the first to the third year, while half of the enterprise income tax is collected for the following three
years.
Qingyuan CSG New Energy, Suzhou CSG PV Energy and Wujiang CSG New Energy started to carry out operations in 2015; The
applicable enterprise income tax rate for them is 12.5% for the current year. Yichang CSG New Energy started operation in 2016,
Zhangzhou CSG, Heyuan CSG and Shaoxing CSG started operation in 2017. Zhanjiang CSG PV Energy、Xianning CSG PV Energy
started operation in 2018.The applicable enterprise income tax rate for them is 0% for the current year.
3. Others
Some subsidiaries of the Group have used the “exempt, credit, refund” method on goods exported and the refund rate is 5%-16%.
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 5,669 9,731
Cash at bank 1,744,235,197 2,225,117,182
Other cash balances 151,216,424 1,320,807
Total 1,895,457,290 2,226,447,720
Including: Total overseas deposits 40,034,095 37,790,337
Other cash balances include margin deposits for the issuance of bills and letter of credit from the bank, amounting to RMB
151,216,424 (Dec. 31, 2018: RMB 1,320,807), which is restricted cash.
38
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2019
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 372,915,741 304,180,556
Trade acceptance notes 283,582,713 415,194,892
Total 656,498,454 719,375,448
(2)Notes receivable which have been endorsed or discounted at the end of the term by the Group but are
not yet due are as follows:
Unit: RMB
Amount of recognition termination Amount of not terminated recognition at the
Item
at the period-end period-end
Bank acceptance notes 2,187,233,792
Trade acceptance notes 102,493,282
Total 2,187,233,792 102,493,282
3. Accounts receivable
(1) Accounts receivable disclosed by category
Unit: RMB
End of term Beginning of term
Carrying amount Provision for bad debts Carrying amount Provision for bad debts
Category
Proporti Propor Book value Propor Propor Book value
Amount Amount Amount Amount
on tion tion tion
Accounts
receivable
withdrawn bad
debt provision 790,538,605 98% 15,808,111 2% 774,730,494 598,852,703 98% 11,976,169 2% 586,876,534
according to
credit risks
characteristics
With amounts
that are not
13,017,818 2% 7,672,515 59% 5,345,303 13,046,506 2% 7,689,728 59% 5,356,778
individually
significant but
39
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2019
that the related
provision for
bad debts is
provided on the
individual basis
Total 803,556,423 100% 23,480,626 3% 780,075,797 611,899,209 100% 19,665,897 3% 592,233,312
Provision for bad debts on the individual basis:
Unit: RMB
Closing balance
Name
Carrying amount Provision for bad debts Proportion Reason
With amounts that are not individually
significant but that the related provision for bad 13,017,818 7,672,515 59%
debts is provided on the individual basis
Total 13,017,818 7,672,515 -- --
Provision for bad debts by portfolio
Unit: RMB
Closing balance
Name
Carrying amount Provision for bad debts Proportion
Portfolio 1 790,538,605 15,808,111 2%
Total 790,538,605 15,808,111 --
Disclosure by the ageing of accounts receivable
Unit: RMB
Ageing Closing balance
Within 1 year (including 1 year) 775,310,227
1 to 2 years 16,330,013
2 to 3 years 4,054,655
Over 3 years 7,861,528
Total 803,556,423
(2) Accounts receivable withdraw, reversed or collected during the reporting period
Unit: RMB
Increased this year Decreased this year
Category Opening balance Closing balance
Provision Others Collect or reversal
40
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2019
Accounts receivable
19,665,897 7,865,165 4,050,436 23,480,626
bad debt provision
Total 19,665,897 7,865,165 4,050,436 23,480,626
(3) Top 5 of the closing balance of the accounts receivable collected according to the arrears party
Unit: RMB
Balance Provision for bad debts Percentage in total accounts receivable balance
Total balances for the five
151,652,292 3,033,046 19%
largest accounts receivable
4. Advances to suppliers
(1) Listed by aging analysis
Unit: RMB
Closing balance Opening balance
Ageing
Amount Proportion Amount Proportion
within 1 year 94,635,437 85% 76,372,805 84%
1 to 2 years 3,198,006 3% 2,034,196 2%
2 to 3 years 1,121,074 1%
over 3 years 12,769,674 11% 12,769,674 14%
Total 111,724,191 -- 91,176,675 --
As at June 30, 2019, advances to suppliers over 1 year with a carrying amount of RMB 17,088,754 were mainly advances paid for
natural gas and materials, which were not fully settled since the materials had not been received.
(2) Top 5 of the closing balance of the advances to suppliers collected according to the target
Balance Percentage in total advances to suppliers balance
Total balances for the five largest advances to suppliers 49,112,463 44%
5. Other receivables
Unit: RMB
Item Closing balance Opening balance
Other receivables 204,039,125 207,424,295
Total 204,039,125 207,424,295
41
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2019
(1) Other receivables
1) Other receivables classified by the nature of accounts
Unit: RMB
Nature Closing book balance Opening book balance
Receivables from special fund for talent 171,000,000 171,000,000
Refundable deposits 13,240,006 21,351,937
Payments made on behalf of other parties 20,017,090 15,036,194
Petty cash 1,160,280 489,912
Export tax rebates receivable 137,744
Others 3,104,906 3,962,723
Total 208,522,282 211,978,510
2）Withdrawal of bad debt provision
Unit: RMB
Phase I Phase II Phase III
Expected credit Expected credit loss for the Expected credit loss for the
Bad debt provision Total
losses in the next 12 entire duration (no credit entire duration (credit
months impairment occurred) impairment occurred)
Balance on 1 January
4,231,310 322,905 4,554,215
2019
Balance on 1 January
—— —— —— ——
2019 in current period
--Transferred to the
Phase II
--Transferred to the
Phase III
-- Transferred back to the
Phase II
-- Transferred back to the
Phase I
Withdrawal 215,709 215,709
Recovery 264,768 264,768
Write-off
Verification 21,999 21,999
Other changes
Balance on 30 June 2019 4,160,252 322,905 4,483,157
3) Significant changes in book balance of loss reserve during the current period
42
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2019
□ Applicable √ Not applicable
Disclosure by the ageing of other receivables
Unit: RMB
Ageing Closing balance
Within 1 year (including 1 year) 14,843,865
1 to 2 years 8,101,678
2 to 3 years 465,488
3 to 4 years 548,379
4 to 5 years 11,110,006
Over 5 years 173,452,866
Total 208,522,282
4) Provision for bad debts withdrawn, recovered or reversed during the reporting period
Provision for bad debts:
Unit: RMB
Change amount of the period
Opening
Category Collect or Closing balance
balance Withdrawal Verification
Recovery
Other receivables bad debt
4,554,215 215,709 264,768 21,999 4,483,157
provision
Total 4,554,215 215,709 264,768 21,999 4,483,157
5) Top 5 of the closing balance of the other accounts receivable collated according to the arrears party
Unit: RMB
Proportion of the
total year end Closing balance of
Name of Company Nature of business Closing balance Ageing
balance of the bad debt provision
accounts receivable
Company A Independent third party 171,000,000 Over 5 years 82% 3,420,000
Governmental
11,067,754 4 to5Years 5% 221,355
department B Independent third party
Company C Independent third party 6,700,000 1 to 2 years 3% 134,000
Company D Independent third party 2,227,000 Within 1 year 1% 44,540
Company E Independent third party 1,800,000 Within 1 year 1% 36,000
Total -- 192,794,754 -- 92% 3,855,895
43
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2019
6. Inventories
(1) Categories of inventories
Unit: RMB
Closing balance Opening balance
Reserve for depreciation Reserve for depreciation
Item Carrying of inventory or Carrying of inventory or
Book value Book value
amount impairment of contract amount impairment of contract
performance cost performance cost
Raw materials 201,515,304 1,438,235 200,077,069 224,107,756 1,438,767 222,668,989
Products in
26,315,600 26,315,600 25,088,903 25,088,903
process
Products in stock 463,731,420 97,443 463,633,977 309,132,138 566,246 308,565,892
Material in
43,824,282 43,824,282 43,815,966 43,815,966
circulation
Total 735,386,606 1,535,678 733,850,928 602,144,763 2,005,013 600,139,750
(2) Provision for decline in the value of inventories
Unit: RMB
Category Opening balance Increased in this term Decreased in this term Closing balance
Raw materials 1,438,767 532 1,438,235
Products in stock 566,246 468,803 97,443
Total 2,005,013 469,335 1,535,678
7. Assets classified as held for sale
Item Closing balance Opening balance
Intangible assets 15,048,314
Construction in progress 30,935,206
Total 45,983,520
The subsidiary of the Group, Dongguan CSG PV-tech signed a grant contract of land use right with third party Dongguan Chaoyin
Textile Co., LTD. (Dongguan Chaoyin Company) on 17 June 2016. Dongguan CSG PV-tech sold its land use right along with the
buildings on the land to Dongguan Chaoyin Company. Therefore, the construction in progress and intangible assets of Dongguan
CSG PV-tech were transferred to assets held for sale. The transfer of property rights of the above assets held for sale had been
completed in the first half year of 2019.
44
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2019
8. Other current assets
New revenue guidelines have been implemented or not
□ Yes √ No
Unit: RMB
Item Closing balance Opening balance
VAT to be offset 113,460,645 115,329,834
Enterprise income tax prepaid 18,185,112 21,277,486
VAT input to be recognized 4,550,217 8,720,129
Entrusted loan(i) 300,000,000
Total 136,195,974 445,327,449
(i)On December 21, 2018, reviewed and approved by the Group's Eighth Session of the Board of Directors , The Group issued
Tengchong Yuezhou Water Investment Development Co., Ltd. entrusted Loans RMB 0.3 billion via China Everbright Bank
shenzhen(Nanshan) branch . The period of entrusted loan was 3 months with annual interest rate 8.5%.
9. Fixed assets
Unit: RMB
Item Closing balance Opening balance
Fixed assets 10,301,649,825 9,930,843,775
Total 10,301,649,825 9,930,843,775
(1) Particulars of fixed assets
Unit: RMB
Machinery and
Item Buildings Motor vehicles Total
equipment
I. Original book value:
1. Opening balance 3,849,892,382 10,885,811,188 217,262,297 14,952,965,867
2. Increased amount of the period
(1) Acquisition 1,247,258 20,117,356 2,608,274 23,972,888
(2) Transfers from construction in progress 47,523,844 782,090,759 3,125,278 832,739,881
(3) Others 6,289,936 10,216,791 996,917 17,503,644
3. Decreased amount of the period
(1) Disposal or retirement 20,129,682 24,070,984 2,951,427 47,152,093
(2) Others 19,379,623 8,087,433 4,716,266 32,183,322
4. Closing balance 3,865,444,115 11,666,077,677 216,325,073 15,747,846,865
45
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2019
II. Accumulative depreciation
1. Opening balance 815,842,766 3,891,110,695 203,490,662 4,910,444,123
2. Increased amount of the period
(1) Provision 59,093,953 376,020,156 10,153,909 445,268,018
3. Decreased amount of the period
(1) Disposal or retirement 4,315,243 15,229,189 2,852,137 22,396,569
(2) Others 251,443 7,415,680 791,915 8,459,038
4. Closing balance 870,370,033 4,244,485,982 210,000,519 5,324,856,534
III. Depreciation reserves
1. Opening balance 21,851,716 89,826,253 111,677,969
2. Increased amount of the period
(1) Provision
(2) Others 25,475,004 25,475,004
3. Decreased amount of the period
(1) Disposal or retirement 10,580,861 5,231,606 15,812,467
4. Closing balance 11,270,855 110,069,651 121,340,506
IV. Book value
1. Closing book value 2,983,803,227 7,311,522,044 6,324,554 10,301,649,825
2. Opening book value 3,012,197,900 6,904,874,240 13,771,635 9,930,843,775
(2) Fixed assets under finance leasing
Unit: RMB
Item Original book value Accumulated depreciation Provision for impairment loss Book value
Machinery and equipment 2,732,521,187 733,264,870 1,999,256,317
(3) Fixed assets with pending certificates of ownership
Unit: RMB
Item Carrying amount Reasons for not yet obtaining certificates of title
Have submitted the required documents and are in the process of
Buildings 853,899,225
application, or the related land use right certificate pending
10. Construction in process
Unit: RMB
Item Closing balance Opening balance
46
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2019
Construction in process 1,940,864,955 2,559,179,442
Total 1,940,864,955 2,559,179,442
(1)Particulars of construction in process
Unit: RMB
Closing balance Opening balance
Provision Provision
Item for for
Book balance Book value Book balance Book value
impairment impairment
loss loss
Yichang CSG polysilicon
1,485,694,938 253,983,876 1,231,711,062 1,465,710,819 253,983,876 1,211,726,943
tech-innovation project
Yichang display device company flat
367,355,053 14,160,474 353,194,579 354,190,988 14,160,474 340,030,514
panel display project
Dongguan Solar Glass Phase I and II
78,970,995 40,248,018 38,722,977 78,970,995 40,248,018 38,722,977
improvement project
Yichang 1GW silicon slice project 69,344,765 69,344,765 48,859,613 48,859,613
LED Sapphire Substrate Project 32,420,412 32,420,412 32,420,412 32,420,412 -
Chengdu float Environmental reforming
21,002,688 21,002,688 16,989,203 16,989,203
project
Dongguan Jingyu Jadeglass Project 20,879,575 20,879,575 14,273,358 14,273,358
Hebei CSG Environmental reforming
19,012,500 19,012,500 19,012,500 19,012,500
project
Qingyuan CSG Ultra-white electronic
glass and ultra-white special glass 16,877,130 16,877,130 338,679 338,679
production line project
Qingyuan quartz material processing
15,036,052 15,036,052 1,976,972 1,976,972
production line
Dongguan PV Tech Block A 300MW
14,709,953 14,709,953 - -
PERC battery technology upgrade
Wujiang float Environmental reforming
9,239,740 9,239,740 16,494,538 16,494,538
project
Dongguan Solar New PV Tech Glass
4,984,716 4,984,716 41,074,003 41,074,003
Processing Project
Yichang CSG polysilicon Wafer
production capacity and tech-upgrade 707,199,477 25,475,004 681,724,473
project
Others 126,555,201 405,983 126,149,218 128,361,652 405,983 127,955,669
47
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2019
Total 2,282,083,718 341,218,763 1,940,864,955 2,925,873,209 366,693,767 2,559,179,442
48
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2019
(2) Movement of significant project
Unit: RMB
Proportion
Accumulate Including: Capitalizing
Transfer to between
Opening Increased Closing of interest rate of
Projects Budget fixed assets engineering Progress Fund recourse
balance this term balance interest capitalized interest this
in this term input and
capitalized this term term
budget
Yichang CSG polysilicon tech-innovation Internal fund
49,520,000 1,465,710,819 19,984,119 1,485,694,938 60% 60%
project and bank loan
Yichang display device company flat Internal fund
1,970,000,000 354,190,988 14,632,570 1,468,505 367,355,053 89% 91% 10,287,637 1,743,885 5.00%
panel display project and bank loan
Dongguan Solar Glass Phase I and II
396,410,000 78,970,995 78,970,995 80% 81% Internal fund
improvement project
Internal fund
Yichang 1GW silicon slice project 1,073,209,600 48,859,613 20,485,152 69,344,765 86% 86% 13,375,050 1,661,105 5.33%
and bank loan
Internal fund
LED Sapphire Substrate Project 35,000,000 32,420,412 32,420,412 93% 93% 4,650,543
and bank loan
Chengdu float Environmental reforming
25,000,000 16,989,203 4,013,485 21,002,688 84% 95% Internal fund
project
Dongguan Jingyu Jadeglass Project 30,000,000 14,273,358 6,606,217 20,879,575 70% 100% Internal fund
Hebei CSG Environmental reforming
25,700,000 19,012,500 19,012,500 74% 100% Internal fund
project
Qingyuan CSG Ultra-white electronic
Internal fund
glass and ultra-white special glass 785,000,000 338,679 16,538,451 16,877,130 2% 5% 102,536 102,536 5.23%
and bank loan
production line project
49
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2019
Qingyuan quartz material processing Internal fund
22,800,000 1,976,972 13,059,080 15,036,052 38% 45%
production line and bank loan
Dongguan PV Tech Block A
Internal fund
300MWPERC battery technology 67,180,000 14,709,953 14,709,953 20% 30% 120,083 120,083 5.65%
and bank loan
upgrade
Wujiang float Environmental reforming
50,300,000 16,494,538 11,137,296 18,392,094 9,239,740 56% 98% Internal fund
project
Dongguan Solar New PV Tech Glass
60,000,000 41,074,003 66,351 36,155,638 4,984,716 95% 99% Internal fund
Processing Project
Yichang CSG polysilicon Wafer
Internal fund
production capacity and tech-upgrade 144,570,000 707,199,477 20,467,511 727,666,988 22% 100% 399,703 369,565 5.33%
and bank loan
project
Dongguan PV Tech 100MW PERC Internal fund
24,220,000 24,207,137 24,207,137 100% 100% 185,803 185,803 5.65%
battery line technology upgrade and bank loan
Internal fund
Others 956,601,183 128,361,652 23,043,068 24,849,519 126,555,201 32,539,875 26,289
and bank loan
Total 5,715,510,783 2,925,873,209 188,950,390 832,739,881 2,282,083,718 61,661,230 4,209,266 --
50
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2019
11. Intangible assets
(1) Particulars of intangible assets
Unit: RMB
Item Land use rights Patents Exploitation rights Others Total
I. Original book value:
1. Opening balance 1,026,603,700 283,187,833 4,456,536 38,007,416 1,352,255,485
2. Increased amount of this period
(1) Acquisition 998,651 998,651
(2) Internal R&D 19,782,076 19,782,076
3. Decreased amount of the period
(1)Disposal
4. Closing balance 1,026,603,700 302,969,909 4,456,536 39,006,067 1,373,036,212
II. Accumulated amortisation
1. Opening balance 170,241,896 97,385,754 4,107,365 31,578,666 303,313,681
2. Increased amount of this period
(1) Provision 10,193,269 12,688,367 200,321 3,039,519 26,121,476
3. Decreased amount of the period
(1) Disposal
4. Closing balance 180,435,165 110,074,121 4,307,686 34,618,185 329,435,157
III. Impairment provision
1. Opening balance 13,201,347 9,133 13,210,480
2. Increased amount of this period
(1) Provision
3. Decreased amount of this period
(1) Disposal
4. Closing balance 13,201,347 9,133 13,210,480
IV. Book value
1. Closing book value 846,168,535 179,694,441 148,850 4,378,749 1,030,390,575
2. Opening book value 856,361,804 172,600,732 349,171 6,419,617 1,035,731,324
At the end of the period, the intangible assets arising from internal research and development accounted for 15.44% of total of
intangible assets.
(2) Land use rights not licensed yet
Unit: RMB
51
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2019
Item Book value Reason for not yet obtaining certificates of title
Land 5,106,319
As at June 30, 2019, ownership certificates of land use right (“Land ownership Certificates”) for certain land use rights of the Group
with carrying amounts of approximately RMB 5,106,319 (cost: RMB 6,586,712) had not yet been obtained by the Group (as at
December 31, 2018, carrying amount: RMB 5,228,694, 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.
12. Development expenditure
Unit: RMB
The increased amount in the period The decrease amount in the period
Opening Closing
Item Recognised as Transfer to current profit
balance Internal development expenditure balance
intangible assets and loss
Development
74,549,257 15,806,245 19,782,076 0 70,573,426
expenditure
Total 74,549,257 15,806,245 19,782,076 0 70,573,426
During Jan.-Jun. 2019, the total amount of research and development expenditures of the Group was RMB 190,082,381 (Jan.-Jun.
2018: RMB 185,844,867), including RMB 174,276,136 (Jan.-Jun. 2018: RMB 166,041,185) recorded in income statement for
current period and the research and development expenditure with the amount of RMB 19,782,076 recognised as intangible assets for
the current period (Jan.-Jun. 2018: 9,191,305). At June 30, 2019, the intangible assets arising from internal research and development
accounted for 15.44% of total of intangible assets (31 December 2018: 14.21%).
13. Goodwill
(1) Book value of goodwill
Unit: RMB
Name of the companies or goodwill item Opening balance Increased this term Decreased this term Closing balance
Tianjin CSG Architectural Glass Co., Ltd. 3,039,946 3,039,946
Xianning CSG Photoelectric 4,857,406 4,857,406
Shenzhen CSG Display 389,494,804 389,494,804
Total 397,392,156 397,392,156
(2) Goodwill impairment provision
Unit: RMB
Name of the companies or Increased this term Decreased this term
Opening balance Closing balance
goodwill item Provision Disposal
52
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2019
Shenzhen CSG Display 20,672,000 20,672,000
Total 20,672,000 20,672,000
The goodwill allocated to the asset groups and groups of asset groups from Tianjin CSG Architectural was summarized by operating
segments as Architectural Glass segment. The goodwill allocated to the asset groups and groups of asset groups from Shenzhen CSG
Display and Xianning CSG Photoelectric are summarized by operating segments as Electronic Glass and Display segment.
The recoverable amount of asset groups is determined by net present value of estimated future cash flows which is determined
according to the five-year budget approved by management. The cash flow exceed five years is forecasted 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.
14. Long-term prepaid expenses
Unit: RMB
Item Opening balance Increased this term Amortized this term Other reduction amount Closing balance
Expenses to be
12,746,609 881,546 43,237 11,821,826
amortized
Total 12,746,609 881,546 43,237 11,821,826
15. Deferred income tax assets/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
388,962,992 66,086,098 394,331,591 68,458,375
impairments
Deductible loss 428,205,355 76,822,319 407,739,415 72,421,592
Government grants 199,110,087 32,741,260 256,949,965 41,523,325
Accrued expenses 32,292,708 4,843,906 42,393,456 6,359,019
Depreciation of fixed assets 28,350,180 4,477,980 27,973,574 4,311,723
Share payment 25,154,672 3,983,574 16,366,061 2,597,038
Total 1,102,075,994 188,955,137 1,145,754,062 195,671,072
(2) Deferred tax liabilities before offsetting
Unit: RMB
53
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2019
Closing balance Opening balance
Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference liabilities difference liabilities
Depreciation of fixed assets 481,202,388 79,025,435 474,157,813 78,260,394
Total 481,202,388 79,025,435 474,157,813 78,260,394
(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 47,219,370 141,735,767 56,141,554 139,529,518
Deferred tax liabilities 47,219,370 31,806,065 56,141,554 22,118,840
(4) Details of unrecognised deferred income tax assets
Unit: RMB
Item Closing balance Opening balance
Deductible losses 604,072,642 517,898,158
Total 604,072,642 517,898,158
(5) Deductible losses of unrecognized deferred income tax assets will due the following years
Unit: RMB
Year Closing balance Opening balance Note
2019 82,300,000 82,300,000
2020 94,430,197 94,430,197
2021 111,625,585 111,625,585
2022 83,303,539 83,303,539
2023 146,238,837 146,238,837
2024 86,174,484
Total 604,072,642 517,898,158 --
16. Other non-current assets
New revenue guidelines have been implemented or not
□ Yes √ No
54
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2019
Unit: RMB
Closing balance Opening balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Prepayment of engineering equipment 49,078,781 49,078,781 50,315,934 50,315,934
Prepayment for lease of land use rights 6,510,000 6,510,000 6,510,000 6,510,000
Total 55,588,781 55,588,781 56,825,934 56,825,934
17. Short-term loans
(1) Categories of short-term loans
Unit: RMB
Item Closing balance Opening balance
Mortgage loan 5,000,000
Guaranteed loan 615,570,348 909,679,590
Unsecured loan 2,050,000,000 2,008,000,000
Total 2,665,570,348 2,922,679,590
(i) On June 30, 2019, the Company provided guarantees for short-term loans of RMB 615,570,348 (31 December 2018: RMB
909,679,590). There was no counter-guarantee provided by the minority shareholders of the subsidiary to the Company (31
December 2018: Nil).
(ii) As at June 30, 2019, the interest of short-term borrowings varied from 2.95%-5.66% (31 December 2018: 2.95%-5.66%).
18. Notes payable
Unit: RMB
Category Closing balance Opening balance
Bank acceptance notes 280,009,274 105,150,000
Total 280,009,274 105,150,000
The total amount of notes payable that has not been paid at the end of the period is RMB 0.
19. Accounts payable
(1) Particulars of accounts payable
Unit: RMB
Item Closing balance Opening balance
Materials payable 679,095,407 749,987,838
55
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2019
Equipment payable 180,219,271 230,997,567
Construction expenses payable 93,786,288 133,247,003
Freight payable 65,446,576 62,455,534
Utilities payable 31,448,673 27,099,683
Others 6,505,589 6,071,638
Total 1,056,501,804 1,209,859,263
(2) Significant accounts payable due for over one year
Unit: RMB
Item Closing balance Unpaid reason
As the construction work had not passed the final
Construction and equipments. 147,128,769
acceptance test yet, the balance was not yet settled.
Total 147,128,769 --
20. Advances from customers
New revenue guidelines have been implemented or not
□ Yes √ No
(1) List of advances from customers
Unit: RMB
Item Closing balance Opening balance
Advances for goods from customers 228,877,586 206,631,008
Total 228,877,586 206,631,008
21. Employee benefits payable
(1) List of Employee benefits payable
Unit: RMB
Item Opening balance Increased this term Decreased this term Closing balance
I. Short-term employee benefits payable 262,906,600 649,467,471 727,357,752 185,016,319
II. Welfare after departure- defined
54,313 50,023,846 49,987,067 91,092
contribution plans
Termination benefits 3,498,238 11,859,878 15,358,116 0
Total 266,459,151 711,351,195 792,702,935 185,107,411
56
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2019
(2) List of short-term employee benefits
Unit: RMB
Item Opening balance Increased this term Decreased this term Closing balance
1. Wages and salaries, bonuses,
242,564,302 587,179,294 665,590,374 164,153,222
allowances and subsidies
2. Social security contributions 24,681 20,225,357 20,204,911 45,127
Including: Medical insurance 21,305 17,304,440 17,284,926 40,819
Work injury insurance 2,357 1,658,348 1,658,174 2,531
Maternity insurance 1,019 1,262,569 1,261,811 1,777
3. Housing funds 2,613,587 21,115,726 21,591,764 2,137,549
4.Labour union funds and
17,704,030 7,571,750 6,595,359 18,680,421
employee education funds
5. Share payment (i) 13,375,344 13,375,344
Total 262,906,600 649,467,471 727,357,752 185,016,319
(3) List of defined contribution plans
Unit: RMB
Item Opening balance Increased this term Decreased this term Closing balance
1. Basic pensions 52,573 48,313,250 48,277,911 87,912
2. Unemployment insurance 1,740 1,710,596 1,709,156 3,180
Total 54,313 50,023,846 49,987,067 91,092
(i) Pursuant to the resolution at the 8th session in the temporary conference of the board of directors of the Company on 11 December
2017, to implemented equity incentive plans of restricted stock for the Company directors and senior management, core management
team, backbones of technology and business. The Company first awarded 97,511,654 restricted shares to 454 incentive objects for the
first time at RMB 4.28 per share. The total fair value of the equity instruments granted to the incentive object by the Company for the
first time was RMB 289,519,900. The total value of such fair value as the total cost of the Company's equity incentive plan would be
confirmed in stages according to the ratio of unlocking/exercising in the implementation of the equity incentive plan, and it was
included in the cost in the term of "management fees and Construction in progress " and "capital reserves - other capital reserves".
Pursuant to the resolution at the 8th session in the temporary conference of the board of directors of the Company on 13 September
2018, the grant date was confirmed on September 13, 2018. the Company awarded 9,826,580 restricted shares to 75 incentive objects
for the first time at RMB 3.68 per share. The total fair value of the equity instruments granted to the incentive object by the Company
was RMB 8,256,000. The total value of such fair value as the total cost of the Company's equity incentive plan would be confirmed
in stages according to the ratio of unlocking/exercising in the implementation of the equity incentive plan, and it is included
in the cost in the term of "management fees and Construction in progress " and "capital reserves - other capital reserves".
During Jan.-Jun. 2019, the cost associated with equity incentive plan was confirmed at RMB 13,375,344.
57
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2019
22. Tax payable
Unit: RMB
Item Closing balance Opening balance
Value-added-tax payable 34,255,820 54,091,751
Corporate income tax payable 38,529,879 36,008,341
Individual income tax payable 3,435,837 3,367,389
City maintenance and construction tax 3,486,794 3,246,775
Property tax 8,128,702 5,156,058
Education surcharge 3,025,558 2,586,657
Environmental protection tax 2,406,129 2,350,943
Others 3,146,248 5,159,451
Total 96,414,967 111,967,365
23. Other payables
Unit: RMB
Item Closing balance Opening balance
Interest payable 73,933,818 73,612,703
Dividend payable 3,221,496 2,846,362
Other payables 279,824,498 476,292,122
Total 356,979,812 552,751,187
(1) Interest payable
Unit: RMB
Item Closing balance Opening balance
Interest of long-term borrowings with periodic payments of
448,382 754,878
interest and return of principal at maturity
Interest payable for short-term borrowings 6,578,327 7,590,517
Interest payable for medium term notes 66,907,109 65,267,308
Total 73,933,818 73,612,703
(2) Dividends payable
Unit: RMB
Item Closing balance Opening balance
58
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2019
Restricted shares dividend 3,221,496 2,846,362
Total 3,221,496 2,846,362
(3) Other payables
1) Listing other payables by nature of the payment
Unit: RMB
Item Closing balance Opening balance
Guarantee deposits received from construction contractors 66,106,119 63,181,510
Accrued cost of sales 31,030,410 37,407,112
Temporary collection of payment for land transfer 56,106,781
Payable for contracted labour costs 15,461,098 16,030,100
Temporary receipts 16,757,175 13,581,459
Deposit for disabled 5,699,448 4,943,347
Restricted share repurchases obligation 137,277,563 275,748,309
Others 7,492,685 9,293,504
Total 279,824,498 476,292,122
2) Important other payables aged over one year
Unit: RMB
Item Closing balance Remarks
Restricted share repurchase obligation 137,277,563 Mainly for restricted stock repurchase obligation
Total 137,277,563 --
24. Current portion of non-current liabilities
Unit: RMB
Item Closing balance Opening balance
Current portion of long-term borrowings 33,800,000 87,800,000
Current portion of long-term payables 680,386,697 731,648,742
Total 714,186,697 819,448,742
25. Other current liabilities
Unit: RMB
Item Closing balance Opening balance
Others 300,000 300,000
59
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2019
Total 300,000 300,000
26. Long-term borrowings
(1) Categories of long-term loans
Unit: RMB
Item Closing balance Opening balance
Guaranteed 292,462,500 315,700,000
Medium term notes 2,000,000,000 2,000,000,000
Total 2,292,462,500 2,315,700,000
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.
On 14 July 2015, the Company issued the Phase I medium term notes of RMB 1,200,000,000 for 2015, with the maturity data of 14
July 2020 and annual rate of 4.94%.
Approved by file No. [2018] MTN157 of Inter-bank Market Trading Association, the Company is entitled to issue medium term
notes with the limit of RMB 800,000,000, which expires on 20 March 2020.
On 4 May 2018, the Company issued the Phase I medium term notes of RMB 800,000,000 for 2018, with the maturity data of 4 May
2021 and annual rate of 7%.
As at 30 June 2019, the interest of long-term borrowings varied from4.75%-7.0% (31 December 2018: 4.75%-7.0%).
27. Long-term account payable
Unit: RMB
Item Closing balance Opening balance
Long-term account payable 291,363,152 529,910,796
Total 291,363,152 529,910,796
(1) List of Long-term account payable by nature
Unit: RMB
Item Closing balance Opening balance
Financial lease 291,363,152 529,910,796
The sale and leaseback lease of the group in this phase is a mortgage loan with a lease term of 36 months. On June 30, 2019, the real
interest rate of financing lease loans is 4.49%-7.8%.
60
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2019
28. Deferred income
Unit: RMB
Increase in current decrease in current
Item Opening balance Closing balance Reason
period period
Government grants 601,825,780 11,800,000 76,730,356 536,895,424
Total 601,825,780 11,800,000 76,730,356 536,895,424 --
Government grants are analysed below:
Unit: RMB
Included Account to Amount of cost
Increase in Related to
Opening in other inco and expense Other Closing
Item in debt current assets or
balance non-busin me in this written down in changes balance
period income
ess income period current period
Tianjin CSG Golden Sun
50,342,227 1,687,446 48,654,781
Project (i) Assets related
Dongguan CSG Golden Sun
40,577,250 1,375,500 39,201,750
Project (ii) Assets related
Hebei CSG Golden Sun
41,250,000 1,375,000 39,875,000
Project (iii) Assets related
Xianning CSG Golden Sun
44,952,417 1,515,250 43,437,167
Project (iv) Assets related
Infrastructure compensation
for Wujiang CSG Glass 35,587,360 2,020,769 33,566,591
Co., Ltd (v) Assets related
Qingyuan Energy-saving
18,319,167 1,235,000 17,084,167
project (vi) Assets related
Yichang Silicon products
18,984,375 1,406,250 17,578,125
project (vii) Assets related
Yichang CSG silicon slice
9,614,011 537,045 9,076,966
auxiliary project (viii) Assets related
Sichuan energy-saving glass
8,821,440 827,010 7,994,430
project (ix) Assets related
Group coating film
5,642,520 941,880 4,700,640
experimental project (x) Assets related
Yichang expert silicon project
3,327,153 151,589 3,175,564
(xi) Assets related
Yichang semiconductor silicon
3,133,333 133,333 3,000,000
project (xii) Assets related
61
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2019
Yichang CSG Display project
48,302,126 1,267,240 47,034,886
(xiii) Assets related
Xianning Photoelectric project
7,800,000 260,000 7,540,000
(xiv) Assets related
Group talent fund project (xv) 171,000,000 171,000,000 Income related
Qingyuan CSG Energy-Saving
Industry Co-construction 62,826,544 8,830,000 59,805,272 11,851,272
support fund(xvi)（xvi） Income related
Assets and income
31,345,857 2,970,000 2,191,772 32,124,085
Others related
Total 601,825,780 11,800,000 76,730,356 536,895,424 ——
(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.
(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 Yichang CSG polysilicon Co., Ltd. by Yichang City Dongshan Development
Corporation under the provisions of the investment contract signed between the Group and the Municipal Government of Yi Chang.
The proceeds were designed for the construction of electricity transformer and the pipelines. Yichang polysilicon is entitled to the
ownership of the facilities， which will be amortised by 16 years according to the useful life of the converting station.
(viii) It represented the government supporting fund obtained by Yichang polysilicon from the acquiring of the assets and liabilities of
Crucible project of Yichang Hejing Photoelectric Ceramic Co., Ltd. The proceeds would be amortised and credited to income statement
by 16 years after related assets were put into use.
62
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2019
(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 import discount complement and international corporation special
subsidy. The grant will be amortised and credited to income statement by 12 to 15 years.
(xii) It represented the special subsidy of Yichang National Regional Strategic Emerging Industry Development Pilot Project II, which
is used to complement Yichang CSG Polysilicon “Hubei semiconductor silicon preparative technique project laboratory”. The grant
will be amortised and credited to income statement by 15 years.
(xiii) It represented the funds granted by Yichang Municipal Government for Yichang CSG Display Company's flat project
construction support funds and construction of coil coating three-line project. The grant will be amortised and credited to income
statement by 15 years.
(xiv) It represented the funds granted by Xianning Government of the Project supporting fund for photoconductive glass production
line, which is used to pay for Xianning CSG Glass Co. Ltd. constructing the project of photoelectric photoelectric optical glass
production line. After the completion of the production line, the ownership belongs to Xianning photoelectric. The allowance will be
credited to income statement in 8 years, the useful life of the production line.
(xv) The allowance was granted by Administrative Commission of Yichang High-tech Industrial Development Zone. For senior
management personnel, engineering technical personnel and senior professional technical team which is working at Yichang or plane to
introduction, RMB171 million fund was set up, as a special fund for talent introduction and housing resettlement.
(xvi) The allowance was granted by Fogang Municipal Government related 2018 province industry co-construction support fund. The
allowance was used for company development and operation by Qingyuan CSG New Energy-Saving Materials Co., Ltd.
29. Share Capital
Unit: RMB
Changed in the report period (+,-)
Opening Closing
Transferred
balance New issues Bonus issue Others Sub-total balance
from reserves
Total of capital
2,863,277,201 282,563,286 -37,644,324 244,918,962 3,108,196,163
shares
30. Capital surplus
Unit: RMB
Item Opening balance Increased this term Decreased this term Closing balance
63
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2019
Capital premium (Share premium) 1,123,780,211 384,897,002 738,883,209
Other capital surplus -28,440,790 13,375,344 -15,065,446
Total 1,095,339,421 13,375,344 384,897,002 723,817,763
(i) The Company passed the 2018 annual general meeting of shareholders held on May 9, 2019 and transferred 1 share to every 10
shares for all shareholders. The total share capital before the distribution was 2,825,632,877 shares, and the total share capital after
the dividend was increased to 3,108,196,163 shares. Capital reserve decreased by RMB 282,563,286.
(ii) On December 12, 2018, the Company held an interim meeting of the 8th Board of Directors and an interim meeting of the 8th
Board of Supervisors, and reviewed and approved the Proposal on Repurchase and Cancelling Some Restricted Stocks of Restricted
Stock Incentive Plan, and agreed to repurchase and cancel the total of 436,719 shares of all restricted stocks held by 8 unqualified
original incentives. The proposal was approved by the 3rd Extraordinary General Meeting in 2018 on December 28, 2018. As of June
18, 2019, the Company has completed the cancellation procedures for the above-mentioned restricted stocks in Shenzhen Branch of
China Securities Depository and Clearing Corporation Limited.
On April 16, 2019, the Company held the 8th Meeting of the Eighth Board of Directors and the 8th Meeting of the Eighth Board of
Supervisors, which reviewed and approved the Proposal on Repurchase and Cancellation of Part of Restricted Stocks of Restricted
Stock Incentive Plan and the Proposal on Repurchase and Cancellation of Restricted Stocks that Had Not Reached the Unlocking
Condition of the Second Unlock Period, and agreed to repurchase and cancel the total of 3,473,329 shares of all restricted stocks held
by 14 unqualified original incentives, as well as the total of 33,734,276 shares of 483 incentive objects that did not meet the
unlocking conditions of the second unlock period. The independent directors of the Company issued a consent opinion. And on May
9, 2019, the proposals were approved by the 2018 Annual General Meeting of Shareholders. As of June 18, 2019, the Company had
completed the cancellation procedures for the above-mentioned restricted stocks in Shenzhen Branch of China Securities Depository
and Clearing Corporation Limited.
After the above restricted stock repurchase, the capital reserve decreased by RMB 102,333,716.
(iii) Due to the equity incentive plan, the share payment fee of RMB 13,375,344 was confirmed in the period.
31. Treasury shares
Unit: RMB
Item Opening balance Increased this term Decreased this term Closing balance
Obligations of restricted share buybacks 277,180,983 139,903,420 137,277,563
Total 277,180,983 139,903,420 137,277,563
The Company calculated the amount determined based on the number of restricted shares issued and the corresponding repurchase
price, and confirmed the liabilities and treasury shares. The decrease in treasury shares was mainly due to the repurchase of the
restricted shares during the report period.
32. Other comprehensive income
Unit: RMB
Item Opening Occuring in current period Closing
64
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2019
balance Less: Amount balance
transferred into
Amount profit and loss in the
Less: After-tax After-tax
incurred current period that
income attribute to attribute to
before recognized into
tax the parent minority
income other
expense company shareholder
tax comprehensive
income in prior
period
I. Other comprehensive income items
which can not be reclassified to profit
or loss
II. Other comprehensive income
items which will be reclassified to 5,080,234 280,161 280,161 5,360,395
profit or loss
Differences on translation of foreign
2,530,234 280,161 280,161 2,810,395
currency financial statements
Finance incentives for energy and
2,550,000 2,550,000
technical transformation
Total of other comprehensive income 5,080,234 280,161 280,161 5,360,395
33. Special reserves
Unit: RMB
Item Opening balance Increased this term Decreased this term Closing balance
Safety production cost 6,068,600 3,646,882 1,480,231 8,235,251
Total 6,068,600 3,646,882 1,480,231 8,235,251
34. Surplus reserves
Unit: RMB
Item Beginning of term Increased this term Decreased this term End of term
Statutory surplus reserve 796,452,807 796,452,807
Discretionary surplus reserve 127,852,568 127,852,568
Total 924,305,375 924,305,375
35. Undistributed profits
Unit: RMB
Items The current period The same period of last year
65
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2019
Retained earnings at the end of the previous term
4,486,264,723 4,159,642,227
before adjustment
Retained earnings at the beginning of this term
4,486,264,723 4,159,642,227
after adjustment
Add: net profits belonging to equity holders of the
377,342,401 352,837,153
Company
Less: Appropriations to statutory surplus reserve
common stock dividends payable 141,207,035 124,041,424
Retained earnings in the end 4,722,400,089 4,388,437,956
36. Revenue and cost of sales
Unit: RMB
Occurred in current term Occurred in previous term
Item
Revenue Cost Revenue Cost
Revenue from main operations 4,850,355,669 3,668,177,768 5,427,330,622 4,086,213,828
Revenue from other operations 37,881,909 3,199,057 43,838,976 13,282,926
Total 4,888,237,578 3,671,376,825 5,471,169,598 4,099,496,754
New revenue guidelines have been implemented or not
□ Yes √ No
37. Tax and surcharge
Unit: RMB
Item Occurred in current term Occurred in previous term
City maintenance and construction tax 15,651,946 20,205,850
Educational surcharge 13,026,844 16,053,678
Housing property tax 15,524,671 15,231,539
Land use rights 6,750,190 10,028,066
Environmental protection tax 4,518,549 5,879,730
Others 1,215,797 4,531,683
Total 56,687,997 71,930,546
38. Selling Expenses
Unit: RMB
Item Occurred in current term Occurred in previous term
Freight expenses 76,898,158 83,319,840
66
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2019
Employee benefits 66,858,153 56,534,666
Entertainment expenses 7,648,722 6,061,293
Business travel expenses 5,382,042 4,909,377
Vehicle use fee 3,898,844 3,839,779
Rental expenses 3,374,917 3,085,489
Compensation 960,672 765,215
General office expenses 1,561,077 1,492,596
Depreciation expenses 446,163 494,202
Others 5,474,651 11,714,797
Total 172,503,399 172,217,254
39. Administrative Expenses
Unit: RMB
Item Occurred in current term Occurred in previous term
Employee benefits 168,542,149 237,887,025
Depreciation expenses 32,466,946 31,624,004
Amortisation of intangible assets 26,121,476 23,153,773
General office expenses 9,380,061 10,595,047
Labour union funds 7,121,128 7,756,982
Entertainment fees 5,308,266 7,056,600
Business travel expenses 4,513,036 5,348,267
Utility fees 3,597,714 4,734,267
Canteen costs 3,517,232 4,046,654
Vehicle use fee 2,421,233 3,268,588
Rental expenses 2,486,878 2,273,435
Consulting advisers 15,564,251 14,334,351
Others 11,821,985 22,433,824
Total 292,862,355 374,512,817
40. Research and development expenses
Unit: RMB
Item Occurred in current term Occurred in previous term
Research and development expenses 174,276,136 166,041,185
Total 174,276,136 166,041,185
67
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2019
41. Finance Expenses
Unit: RMB
Item Occurred in current term Occurred in previous term
Interest expenses 171,031,605 203,531,507
Less: Interest income 14,923,375 23,033,418
Exchange losses -1,574,396 -1,568,225
Others 4,533,025 6,947,562
Total 159,066,859 185,877,426
42. Other income
Unit: RMB
Source of other gains Occurred in current term Occurred in previous term
Government subsidy amortization 76,730,356 15,268,650
Industry support funds 14,640,420 236,000
Government incentive funds 6,133,101 4,239,400
Energy conservation and utilization
700,000 7,000
support funds
Research grants 3,859,699 1,423,460
Tax refund 4,480,538 22,194
Others 1,211,299 667,096
Total 107,755,413 21,863,800
43. Asset impairment losses
New revenue guidelines have been implemented or not
□ Yes √ No
Unit: RMB
Item Occurred in current term Occurred in previous term
Bad debt loss -3,765,670 -3,653,609
Total -3,765,670 -3,653,609
44. Asset disposal income
Unit: RMB
Source of income from assets disposal Occurred in current term Occurred in previous term
Gains on disposal of assets 370,969 -567,830
68
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2019
45. Non-operating income
Unit: RMB
Occurred in current Occurred in previous Amount of non-recurring gain and loss
Item
term term included in the report period
Government subsidy 150,000
Compensation income 2,723,039 837,396 2,723,039
Amounts unable to pay 353,473 282,061 353,473
Others 589,803 1,326,338 589,803
Total 3,666,315 2,595,795 3,666,315
46. Non-operating expenses
Unit: RMB
Occurred in current Occurred in previous Amount of non-recurring
Item
term term gain and loss included in the report period
Donation 1,565,000 1,565,000
Compensation 4,077,304 4,077,304
Others 650,923 878,551 650,923
Total 6,293,227 878,551 6,293,227
47. Income tax expenses
(1) List of income tax expenses
Unit: RMB
Item Occurred in current term Occurred in previous term
Current income tax 68,977,764 77,115,637
Deferred income tax 7,480,976 -15,744,533
Total 76,458,740 61,371,104
(2) Adjustment process of accounting profit and income tax expense
Unit: RMB
Item Occurred in current term
Total profit 463,197,807
Current income tax expense accounted by tax and relevant regulations 63,521,405
Costs, expenses and losses not deductible for tax purposes 656,832
69
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2019
Influence of deductible temporary difference or deductible losses of
21,543,621
unrecognized deferred income tax assets
Impact on the use of deductible loss of deferred income tax assets not
-980,510
recognized in previous period
Balance the previous year income tax adjustment -4,359,545
Impact of tax incentives -3,923,063
Income tax expenses 76,458,740
48. Items of the cash flow statement
(1) Cash generated by other operating activities
Unit: RMB
Item Occurred in current term Occurred in previous term
Interest income 14,923,375 23,033,418
Government grant 42,825,057 6,745,150
Others 11,580,256 34,088,357
Total 69,328,688 63,866,925
(2) Cash paid relating to other operating activities
Unit: RMB
Item Occurred in current term Occurred in previous term
Freight expenses 89,770,136 88,366,623
Canteen costs 16,876,581 18,797,322
General office expenses 16,108,811 15,300,093
Business travel expenses 12,052,639 12,947,259
Entertainment fees 13,964,607 13,644,421
Vehicle use fee 6,995,143 7,827,828
Bank fees 4,533,025 6,947,562
Insurance 9,534,154 9,642,870
Research and development expenses 16,850,014 32,721,683
Maintenance fee 14,530,543 15,974,559
Rental expenses 5,861,795 5,358,924
Consulting fees 10,062,588 8,397,822
Others 97,407,871 74,446,270
Total 314,547,907 310,373,236
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2019
(3) Cash generated by other investing activities
Unit: RMB
Item Occurred in current term Occurred in previous term
Government grants related to assets received 2,680,000
Deposit 5,471,303
Income from trial production of construction in progress 30,851,703 1,045,277
Total 36,323,006 3,725,277
(4) Cash paid relating to other investing activities
Unit: RMB
Item Occurred in current term Occurred in previous term
Trial production expenditure in construction 44,089,887 54,018,834
Payment for deposit and margin 4,673,145
Total 44,089,887 58,691,979
(5) Cash generated by other financing activities
Unit: RMB
Item Occurred in current term Occurred in previous term
Income from financing leases 200,000,000
Collect entrusted loan 300,000,000
Collection of income tax of dividends of A-share
154,376 1,276,534
& B-share
Collect industrial production scheduling fund 15,000,000
Total 500,154,376 16,276,534
(6) Cash paid relating to other financing activities
Unit: RMB
Item Occurred in current term Occurred in previous term
Repay financing leases 515,199,702 347,964,797
Equity incentive repurchase payment 139,978,039
Payment for deposit and margin 147,843,719 12,116,876
Payment for margin and fees of loans and bills 5,746,178 1,920,000
Total 808,767,638 362,001,673
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2019
49. Supplement information to the cash flow statement
(1) Supplement information to the cash flow statement
Unit: RMB
Supplementary Info. Amount of this term Amount of last term
1. Reconciliation from net profit to cash flows from operating
-- --
activities
Net profit 386,739,067 359,082,117
Add: Provisions for assets impairment 3,765,670 3,653,609
Depreciation of fixed assets, gas and petrol depreciation,
445,268,018 497,530,356
production goods depreciation
Amortisation of intangible assets 26,121,476 23,153,773
Amortisation of long-term prepaid expenses 881,546 794,984
Losses on disposal of fixed assets intangible assets and
-370,969 567,830
other long-term assets (“- “for gains)
Finance expenses (“- “for gains) 171,031,605 203,531,507
Decrease in deferred tax assets (“- “for increase) -2,206,249 -19,247,637
Increase of deferred income tax liability (“- “for decrease) 9,687,225 3,503,104
Decrease of inventory (“- “for increase) -133,241,843 -27,723,994
Decrease of operational receivable items (“- “for increase) -157,088,345 -288,368,392
Increase of operational payable items (“- “for decrease) 1,853,269 -88,311,767
Others 15,541,995 96,398,598
Net cash flow generated by business operation 767,982,465 764,564,088
2. Significant investment and financing activities that do not
-- --
involve cash receipts and payments:
3. Net change of cash and cash equivalents -- --
Balance of cash at period end 1,744,240,866 3,358,253,346
Less: Initial balance of cash 2,225,126,913 2,459,753,165
Net increasing of cash and cash equivalents -480,886,047 898,500,181
(2) Formation of cash and cash equivalents
Unit: RMB
Item Closing balance Opening balance
I. Cash 1,744,240,866 2,225,126,913
Incl: Cash on hand 5,669 9,731
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2019
Bank deposits that can be readily drawn on demand 1,744,235,197 2,225,117,182
III. Balance of cash and cash equivalents at the end of the period 1,744,240,866 2,225,126,913
50. Assets with restricted ownership or use rights
Unit: RMB
Item Ending book value Reason for restriction
Monetary assets 151,216,424 Restricted deposit flow
Fixed assets 1,999,256,317 Limited finance lease
Total 2,150,472,741 --
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 -- -- 90,753,974
Incl: USD 12,816,140 6.8747 88,107,118
EUR 52,433 7.8170 409,869
HKD 1,837,464 0.8797 1,616,417
JPY 9,648,605 0.0638 615,581
AUD 1,036 4.8156 4,989
Accounts receivable -- -- 139,825,244
Incl: USD 18,085,697 6.8747 124,333,741
EUR 1,702,710 7.8170 13,310,084
HKD 2,479,731 0.8797 2,181,419
Short-term borrowings -- -- 65,977,500
Incl: HKD 75,000,000 0.8797 65,977,500
Accounts payable -- -- 51,777,069
Incl: USD 5,702,777 6.8747 39,204,881
EUR 1,376,119 7.8170 10,757,122
HKD 307 0.8797 270
JPY 28,445,078 0.0638 1,814,796
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2019
52. Government subsidy
(1) Basic situation of government subsidies
Unit: RMB
Amount included in current
Type Amount Presentation project
profit and loss
Government subsidy
76,730,356 Other income 76,730,356
amortization
Other government subsidies 31,025,057 Other income 31,025,057
VIII. The changes of consolidation scope
1. Changes in scope of consolidation for other reasons
On March 21, 2019, the Group set up a subsidiary, Zhuhai CSG Commercial Factoring Co., Ltd.. As of June 30, 2019, the
Group has invested RMB 10,000,000. The Group owns 100% of its equity.
On May 14, 2019, the Group set up a subsidiary, Zhuhai Hengqin New District CSG Glass Industry Co., Ltd.. As of June
30, 2019, the Group owns 100% of its equity.
On June 11, 2019, the Group set up a subsidiary, Shenzhen CSG Supply Chain Management Service Co., Ltd.. As of
June 30, 2019, the Group owns 100% of its equity.
IX. Interest in other entities
1. Interest in subsidiary
(1) Composition of the Group
Major business Place of Shareholding (%) Way of
Name of subsidiary Scope of business
location registration Direct Indirect acquicition
Development, production and
Chengdu CSG Chengdu, PRC Chengdu, PRC 75% 25% Establishment
sales of special glass
Development, production and
Sichuan CSG Energy
Chengdu, PRC Chengdu, PRC sales of special glass and 75% 25% Split-off
Conservation
processing of glass
Tianjin Energy Development, production and
Tianjin, PRC Tianjin, PRC 75% 25% Establishment
Conservation sales of special glass
Dongguan CSG
Dongguan, PRC Dongguan, PRC Intensive processing of glass 75% 25% Establishment
Engineering
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2019
Production and sales of solar
Dongguan CSG Solar Dongguan, PRC Dongguan, PRC 75% 25% Establishment
glass
Production and sales of hi-tech
Dongguan CSG PV-tech Dongguan, PRC Dongguan, PRC 100% Establishment
green battery and components
Yichang CSG Production and sales of
Yichang, PRC Yichang, PRC 75% 25% Establishment
Polysilicon high-purity silicon materials
Wujiang CSG
Wujiang, PRC Wujiang, PRC Intensive processing of glass 75% 25% Establishment
Engineering
Production and sales of special
Hebei CSG Yongqing, PRC Yongqing, PRC 75% 25% Establishment
glass
Production and sales of special
Wujiang CSG Wujiang, PRC Wujiang, PRC 100% Establishment
glass
China Southern Glass Hong Kong, Hong Kong,
Investment holding 100% Establishment
(Hong Kong) Limited PRC PRC
Production and sales of
Hebei Shichuang Yongqing, PRC Yongqing, PRC 100% Establishment
ultra-thin electronic glass
Production and sales of special
Xianning CSG Xianning, PRC Xianning, PRC 75% 25% Establishment
glass
Xianning CSG
Xianning, PRC Xianning, PRC Intensive processing of glass 75% 25% Split-off
Energy-Saving
Qingyuan CSG Production and sales of
Qingyuan, PRC Qingyuan, PRC 100% Establishment
Energy-Saving ultra-thin electronic glass
Shenzhen CSG
Financial Leasing Co., Shenzhen, PRC Shenzhen, PRC Finance leasing, etc. 75% 25% Establishment
Ltd.
Jiangyou CSG Mining Production and sales of silica
Jiangyou, PRC Jiangyou, PRC 100% Establishment
Development Co. Ltd. and its by-products
Shenzhen CSG PV Investment management of
Shenzhen, PRC Shenzhen, PRC 100% Establishment
Energy Co., Ltd. photovoltaic plant
Qingyuan CSG New Clean energy development,
Qingyuan, PRC Qingyuan, PRC 100% Establishment
Energy Co., Ltd. photovoltaic power generation
Suzhou CSG PV-tech Clean energy development,
Wujiang, PRC Wujiang, PRC 100% Establishment
Co., Ltd. photovoltaic power generation
Wujiang CSG New Clean energy development,
Wujiang, PRC Wujiang, PRC 100% Establishment
Energy Co., Ltd. photovoltaic power generation
Yichang CSG New Clean energy development,
Yichang, PRC Yichang, PRC 100% Establishment
Energy Co., Ltd photovoltaic power generation
Production and sales of display
Shenzhen CSG Display: Shenzhen, PRC Shenzhen, PRC 60.8% Acquisition
component products
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2019
Xianning CSG Photoelectric glass and high
Xianning, PRC Xianning, PRC 37.5% 62.5% Acquisition
Photoelectric aluminium glass
(2)The significant non-fully-owned subsidiaries of the Group
Unit: RMB
Shareholding of Total profit or loss attributable to Dividends distributed to Minority interest
Subsidiaries minority minority shareholders for the year minority interests for the as at 30 June
shareholders ended 30 June 2019 year ended 30 June 2019 2019
Shenzhen CSG Display 39.20% 8,661,678 327,464,534
(3) The major financial information of the significant non-fully-owned subsidiaries of the Group
Unit: RMB
Closing balance
Name of
Current Non-current
Subsidiary Total assets Current liabilities Non-current liabilities Total liabilities
assets assets
168,441,660 1,414,325,762 1,582,767,422 582,370,921 129,923,052 712,293,973
Opening balance
Shenzhen CSG
Current Non-current
Display Total assets Current liabilities Non-current liabilities Total liabilities
assets assets
220,538,417 1,418,945,195 1,639,483,612 620,430,756 171,541,290 791,972,046
Unit: RMB
Occurred in current term Occurred in previous term
Cash flows Cash flows
Name of Total Total
from from
Subsidiary Revenue Net profit comprehensive Revenue Net profit comprehensive
operating operating
income income
activities activities
Shenzhen CSG
276,594,464 22,096,117 22,096,117 47,005,530 240,861,525 11,154,553 11,154,553 30,440,528
Display
X. Risk related to financial instrument
The Group's activities expose it to a variety of financial risks: market risk (primarily currency risk and interest rate risk), credit risk and
liquidity risk. The Group's overall risk management programme focuses on the unpredictability of financial markets and seeks to
minimise potential adverse effects on the Group's financial performance.
(1) Market risk
(a) Foreign exchange risk
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2019
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 HKD. The Group monitors the scale of foreign currency transactions, foreign currency assets and liabilities, and
adjusts settlement currency of export business, to furthest reduce the currency risk.
As at 30 June 2019 the carrying amounts in RMB equivalent of the Group’s assets and liabilities denominated in foreign currencies
are summarized below:
30 June 2019
USD HKD Others Total
Financial assets denominated in foreign
currency-
Cash at bank and on hand 88,107,118 1,616,417 1,030,439 90,753,974
Receivables 124,333,741 2,181,419 13,310,084 139,825,244
Total 212,440,859 3,797,836 14,340,523 230,579,218
Financial liabilities denominated in foreign
currency
Short-term borrowings 65,977,500 65,977,500
Payables 39,204,881 270 12,571,918 51,777,069
Total 39,204,881 65,977,770 12,571,918 117,754,569
31 December 2018
USD HKD Others Total
Financial assets denominated in foreign
currency-
Cash at bank and on hand 81,350,525 1,383,594 1,304,925 84,039,044
Receivables 118,697,795 1,372,872 7,429,706 127,500,373
Total 200,048,320 2,756,466 8,734,631 211,539,417
Financial liabilities denominated in foreign
currency
Short-term borrowings 65,715,000 65,715,000
Payables 56,170,817 269 12,397,080 68,568,166
Total 56,170,817 65,715,269 12,397,080 134,283,166
As at 30 June 2019, if the currency had strengthened/weakened by 10% against the USD while all other variables had been held
constant, the Group’s net profit for the year would have been approximately RMB 14,725,058 lower/higher (31 December 2018:
approximately RMB 12,229,588 lower/higher) for various financial assets and liabilities denominated in USD.
As at 30 June 2019, 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 5,285,294 higher/lower (31 December 2018:
approximately RMB 5,351,498 higher/lower ) for various financial assets and liabilities denominated in HKD.
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2019
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 floati ng rate
contracts depending on the prevailing market conditions. As at 30 June 2019, the Group’s long-term interest-bearing debt at variable
rates and fixed rates as illustrated below:
Type 30 June 2019 31 December 2018
Debt at fixed rates 2,244,650,000 2,258,325,000
Debt at variable rates 47,812,500 57,375,000
Total 2,292,462,500 2,315,700,000
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, other
receivables.
The Group expects that there is no significant credit risk associated with cash at bank since they are mainly deposited at state-owned
banks and other medium or large size listed banks. Management does not expect that there will be any significant losses from
non-performance by these counterparties. Furthermore, as the Group’s bank acceptance notes receivable are generally accepted by
the state-owned banks and other large and medium listed banks, management believes the credit risk should be limited.
In addition, the Group has policies to limit the credit exposure on accounts receivable, other receivables and trade acceptance notes
receivable. The Group assesses the credit quality of and sets credit limits on its customers by taking into account their financial
position, the availability of guarantee from third parties, their credit history and other factors such as current market conditions. The
credit history of the customers is regularly monitored by the Group. In respect of customers with a poor credit history, the Group will
use written payment reminders, or shorten or cancel credit periods, to ensure the overall credit risk of the Group is limited to a
controllable extent.
(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
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2019
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 2019, the Group had net current liabilities of approximately RMB 1,066 million and committed capital expenditures of
approximately RMB 595 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;
(c) The Group will closely monitor the payment of construction expenditure in terms of payment time and amount.
The financial liabilities of the Group at the balance sheet date are analysed by their maturity date below at their undiscounted
contractual cash as follows:
30 June 2019
Within 1 year 1 to 2 years 2 to 5 years Over 5 years Total
Short-term borrowings 2,726,856,105 2,726,856,105
Notes payable 280,009,274 280,009,274
Accounts payable 1,056,501,804 1,056,501,804
Other payables 356,979,812 356,979,812
Other current liabilities 300,000 300,000
Non-current liabilities due
715,224,979 715,224,979
within one year
Long-term payables 238,356,652 53,006,500 291,363,152
Long-term borrowings 133,056,500 2,160,156,402 197,242,637 2,490,455,539
Total 5,268,928,474 2,398,513,054 250,249,137 7,917,690,665
31 December 2018
Within 1 year 1 to 2 years 2 to 5 years Over 5 years Total
Short-term borrowings 2,991,136,478 2,991,136,478
Notes payable 105,150,000 105,150,000
Accounts payable 1,209,859,263 1,209,859,263
Other payables 552,751,187 552,751,187
Other current liabilities 300,000 300,000
Non-current liabilities due
821,135,376 821,135,376
within one year
Long-term payables 529,910,796 529,910,796
Long-term borrowings 134,337,188 1,403,773,698 1,044,119,211 2,582,230,097
Total 5,814,669,492 1,933,684,494 1,044,119,211 8,792,473,197
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2019
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, book value of the other financial assets and liabilities not measured at fair value is a
reasonable approximation of their fair value.
30 June 2019 31 December 2018
Carrying amount Fair value Carrying amount Fair value
Medium term notes 2,000,000,000 2,059,460,000 2,000,000,000 2,028,614,800
Total 2,000,000,000 2,059,460,000 2,000,000,000 2,028,614,800
The fair values of medium-term notes is 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, and medium term notes belong to Level 2.
XII. Related party and related Transaction
1. Information of the parent company
The Company regards no entity as the parent company.
2. The subsidiaries
The general information and other related information of the subsidiaries are set out in attached note.
3. Joint venture of the Company
Nil.
4. Other related parties
(1) Related transactions for the purchase and sale of goods, provision and receipt of services
Nil.
(2) Other related parties information
Nil.
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2019
5. Others
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 billion 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. The Company did not borrow from shareholders in the period.
XIII. Share Payment
1. Overall situation of share payment
√ Applicable □ Not applicable
Unit: RMB
The total number of equity instruments granted by the company in the current period
Total amount of various equity instruments that the company exercises during the current period
The total number of various equity instruments that have repurchased in the current period 37,644,324
The scope of the company’s outstanding share options and the remaining duration of the contract
at the end of the period
The scope of the company's exercise price of other equity instruments at the end of the period
and the remaining duration of the contract at the end of the period
On December 11, 2017, reviewed and approved by the Group's eighth session of the Board of Directors, the Group implemented the
2017 A Share Restricted Stock Incentive Plan. The 454 incentive objects for the restricted shares granted under this plan included the
Company’s directors, senior management personnel,core management members, key technology members. The first grant date of this
restricted stock was December 11, 2017. The Company granted 97,511,654 restricted shares for the first time to 454 incentive objects.
The initial grant price was RMB 4.28 yuan per share. The number of reserved restricted stocks was 17,046,869 shares, and the grant
price had not been determined. The shares granted for the first time had been registered and listed.
This incentive plan is valid for 48 months from the date of grant of the restricted stock to the date of unlocking of all restricted stocks
or the completion of repurchase and cancellation. During the unlocking/exercise period, if the unlocking/exercise condition specified
in the incentive plan is reached, the restricted stock granted is unlocked in three phases after 12 months from the grant date.
The unlock period is shown in the following table:
Unlock Schedule Unlock Time Unlock Ratio
First unlock from the date of the first transaction 12 months after the award date to the date of 40%
the last transaction within 24 months from the grant date.
Second unlock from the date of the first trading day 24 months after the grant date to the date of 30%
the last trading day within 36 months from the grant date
Third unlock from the date of the first trading day 36 months after the grant date to the day of 30%
the last trading day within 48 months from the grant date
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2019
By the 2th temporary meeting of shareholders held on 6th August 2018, the Company decided to repurchase and cancel the
still-restricted shares which had already been granted to and held by 15 recipients no longer qualified for “Incentive Plan” due to
either resignation or position adjustment. 3,319,057 shares were repurchased and cancelled. The Company had completed the
cancellation procedures for the above-mentioned restricted shares by 10 September 2018.
The Company held a temporary meeting of the 8th Board of Directors on September 13, 2018, which reviewed and approved
September 13, 2018 to be the shares granting date and 75 recipients to be granted 9,826,580 restricted shares in total.
On December 12, 2018, the Company held an interim meeting of the Eighth Board of Directors and an interim meeting of the Eighth
Board of Supervisors, and reviewed and approved the Proposal on Repurchase and Cancellation of Part of Restricted Stocks of
Restricted Stock Incentive Plan, and agreed to repurchase and cancel the total of 436,719 shares of all restricted stocks held by 8
unqualified original incentive objects. The proposal was approved by the 3rd Extraordinary General Meeting in 2018 on December
28, 2018. As of June 18, 2019, the Company had completed the cancellation procedures for the above-mentioned restricted stocks in
Shenzhen Branch of China Securities Depository and Clearing Corporation Limited.
On April 16, 2019, the Company held the 8th Meeting of the Eighth Board of Directors and the 8th Meeting of the Eighth Board of
Supervisors, which reviewed and approved the Proposal on Repurchase and Cancellation of Part of Restricted Stocks of Restricted
Stock Incentive Plan and the Proposal on Repurchase and Cancellation of Restricted Stocks that Had Not Reached the Unlocking
Condition of the Second Unlock Period, and agreed to repurchase and cancel the total of 3,473,329 shares of all restricted stocks held
by 14 unqualified original incentives, as well as the total of 33,734,276 shares of 483 incentive objects that did not meet the
unlocking conditions of the second unlock period. The independent directors of the Company issued a consent opinion. And on May
9, 2019, the proposals were approved by the 2018 Annual General Meeting of Shareholders. As of June 18, 2019, the Company had
completed the cancellation procedures for the above-mentioned restricted stocks in Shenzhen Branch of China Securities Depository
and Clearing Corporation Limited.
2. Equity-settled share payment
√ Applicable □ Not applicable
Unit: RMB
Method for Determining the Fair Value of Equity Instruments on the Grant
Black-Scholes Model
Date
Based on the latest information on the change in
the number of exercisable rights and the
Determination of the number of vesting equity instruments completion of performance indicators, the number
of equity instruments that are expected to be
exercised is revised.
Reasons for significant differences between current estimates and previous
Not applicable
estimates
Cumulative amount of equity-settled share-based payment in capital reserves 165,848,197
Total equity confirmed by equity-settled share-based payment in this period 13,375,344
Other note
According to the relevant provisions of Accounting Standards for Business Enterprises No. 11 - Share Payment and Enterprise
Accounting Standard No. 22 - Recognition and Measurement of Financial Instruments, the Group uses the Black-Scholes model (BS
model) as a pricing model, deducting incentive objects. The fair value of the restricted stock will be used after the lock-in costs that
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2019
are required to obtain the rational expected return from the sales restriction period are lifted in the future. The Group will, on each
balance sheet date of the lock-in period, revise the number of restricted stocks that are expected to be unlikable based on the newly
obtained changes in the number of unlockable persons and performance indicators, and follow the fair value of the restricted stock
grant date. The services obtained during the current period are included in the relevant costs or expenses and capital reserves.
The Group actually granted restricted stocks of 97,511,654 shares in 2017, and the total fair value of the equity instruments granted
to the incentive target for the first day of grant was RMB 289,519,900, the total fair value as the total cost of the company's equity
incentive plan will be confirmed in stages according to the unlocking/exercise ratio during the implementation of the equity incentive
plan, and will be included in the "management fees and Construction in progress " of each period accordingly.
By the 2th temporary meeting of shareholders held on 6th August 2018, the company decided to repurchase and cancel the
still-restricted shares which have already been granted to and held by 15 recipients no longer qualified for “incentive plan” due to
either resignation or position adjustment 3,319,057 shares were repurchased and cancelled, The company has finished above
cancellations of the restricted shares by 10 September 2018.
The Company held the 8th temporary meeting of Board member members on September 13, 2018, which reviewed and approved
September 13, 2018 to be the shares granting date and 75 recipients to be granted 9,826,580 restricted shares in total.
The Company held the 8th temporary meeting of Board member members on December 12, 2018, which reviewed and approved the
releasing conditions on the first- time expiring trading restrictions of the initial part of the incentive plan on restricted shares from
ordinary A. A total of 431 recipients of the incentive plan were able to fulfill the conditions. The amount of 43,353,050 shares could
be released from restrictions. The restricted shares was released and listed by company on December 21 2018.
In addition, according to the Group’s performance in 2018, the unlocking conditions for the second post lock-up period for the
restricted shares incentive plan for 2017 and for the second post lock-up period for the restricted shares incentive plan for 2018 were
not met. Therefore, by December 31 2018, expenses for the second post lock-up period for the ordinary A restricted shares was
reduced by RMB 41,856,285.
On December 12, 2018, the Company held an interim meeting of the Eighth Board of Directors and an interim meeting of the Eighth
Board of Supervisors, and reviewed and approved the Proposal on Repurchase and Cancellation of Part of Restricted Stocks of
Restricted Stock Incentive Plan, and agreed to repurchase and cancel the total of 436,719 shares of all restricted stocks held by 8
unqualified original incentive objects. The proposal was approved by the 3rd Extraordinary General Meeting in 2018 on December
28, 2018. As of June 18, 2019, the Company had completed the cancellation procedures for the above-mentioned restricted stocks in
Shenzhen Branch of China Securities Depository and Clearing Corporation Limited.
On April 16, 2019, the Company held the 8th Meeting of the 8th Board of Directors and the 8th Meeting of the 8th Board of
Supervisors, which reviewed and approved the Proposal on Repurchase and Cancelling of Part of Restricted Stocks of Restricted
Stock Incentive Plan and the Proposal on Repurchase and Cancelling of Restricted Stocks that Had Not Reached the Unlocking
Condition of the Second Unlock Period, and agreed to repurchase and cancel the total of 3,473,329 shares of all restricted stocks held
by 14 unqualified original incentives, as well as the total of 33,734,276 shares of 483 incentives that did not meet the unlocking
conditions of the second unlock period. The independent directors of the Company issued a consent opinion. And on May 9, 2019,
the proposals were approved by the 2018 Annual General Meeting of Shareholders. As of June 18, 2019, the Company has
completed the cancellation procedures for the above-mentioned restricted stocks in Shenzhen Branch of China Securities Depository
and Clearing Corporation Limited.
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2019
During Jan.- Jun. 2019, the relevant cost sharing amount of the incentive plan was recognized as RMB 13,375,344 by the Group.
3. Share payment in cash
□Applicable √ Not applicable
XIV. Commitments and contingencies
1. Significant commitments
(1) Important commitments on balance sheet date
Item 30 June 2019 31 December 2018
Buildings, machinery and equipment 594,876,141 130,748,435
(2) Operating lease commitments
The future minimum lease payments due under the signed irrevocable operating leases contracts are summarized as follows:
30 June 2019 31 December 2018
Within 1 year 4,442,189 19,016,297
1 to 2 years 1,914,940 16,993,654
2 to 3 years 1,224,848 16,654,854
Over 3 years 711,027 1,093,859
Total 8,293,004 53,758,664
2. Segment information
(1) Definition foundation and accounting policy of segment
The Group's business activities are categorised by product and service as follows:
Glass segment, engaged in production and sales of float glass and engineering glass and other building energy - saving materials, the
silica for the production thereof, etc.
Solar energy segment, engaged in manufacturing and sales of polysilicon and solar battery and applications, etc.
Electronic glass and display segment is responsible for production and sales of display components and special ultra-thin glass
products, etc.
The reportable segments of the Group are the business units that provide different products or service. Different businesses require
different technologies and marketing strategies. The Group, therefore, separately manages the production and operation of each
reportable segment and Estimates their operating results respectively, in order to make decisions about resources to be allocated to
these segments and to assess their performance.
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2019
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
Solar energy
Item Glass industry glass and Others Unallocated Elimination Total
industry
displays
Revenue from
external 3,623,089,281 508,608,850 751,193,535 5,345,912 4,888,237,578
customers
Inter-segment
47,261,199 1,058,077 23,947,569 32,810,773 -105,077,618
revenue
Interest income 1,363,338 620,805 158,048 297 12,780,887 14,923,375
Interest
61,861,009 13,097,202 20,846,393 75,227,001 171,031,605
expenses
Asset
impairment 2,601,211 342,578 916,195 -94,314 3,765,670
losses
Depreciation
and amortisation 312,682,629 86,247,454 70,464,846 12,078 2,864,033 472,271,040
expenses
Total profit 417,660,118 116,699,850 25,189,844 -13,208 -92,191,776 -4,147,021 463,197,807
Income tax
62,711,898 11,407,866 2,338,976 76,458,740
expenses
Net profit 354,948,220 105,291,984 22,850,868 -13,208 -92,191,776 -4,147,021 386,739,067
Total assets 8,941,702,998 3,159,708,512 4,621,850,616 628,109 1,723,296,835 18,447,187,070
Total liabilities 2,542,399,877 804,135,574 678,868,588 2,504,400 4,708,566,601 8,736,475,040
Increase in
non-current
assets other than 61,809,809 35,067,054 95,405,330 -4,305,092 187,977,101
long-term equity
investments
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2019
(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. 2019 Jan.-Jun. 2018
Mainland 4,155,252,155 4,691,225,341
Hong Kong 123,321,165 152,221,834
Europe 28,933,096 37,480,049
Asia (other than Mainland and Hong Kong) 516,968,408 538,291,685
Australia 29,263,840 29,949,405
North America 25,808,072 18,072,258
Other regions 8,690,842 3,929,026
Total 4,888,237,578 5,471,169,598
Total non-current assets 30 June 2019 31 December 2018
Mainland 13,775,007,182 14,033,948,714
Hong Kong 12,602,362 12,647,783
Total 13,787,609,544 14,046,596,497
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 receivables
(1) Other receivables
1) Other accounts receivable classified by the nature of accounts
Unit: RMB
Nature of accounts Ending book balance Beginning book balance
Accounts receivable of related party 3,551,759,074 2,739,449,549
Others 171,882,985 176,598,669
Total 3,723,642,059 2,916,048,218
2) Withdrawal of bad debt provision
Unit: RMB
Phase I Phase II Phase III
Expected credit Expected credit loss for the Expected credit loss for the
Bad debt provision Total
losses in the next 12 entire duration (no credit entire duration (credit
months impairment occurred) impairment occurred)
Balance on 1 January 3,531,973 3,531,973
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2019
2019
Balance on 1 January
—— —— —— ——
2019 in current period
--Transferred to the
Phase II
--Transferred to the
Phase III
-- Transferred back to the
Phase II
-- Transferred back to the
Phase I
Withdrawal
Recovery 94,314 94,314
Write-off
Verification
Other changes
Balance on 30 June 2019 3,437,659 3,437,659
3) Disclosure by ageing
Unit: RMB
Ageing Closing balance
Within 1 year (including 1 year) 3,552,463,309
1 to 2 years 19,703
2 to 3 years 159,047
3 to 4 years
4 to 5 years
Over 5 years 171,000,000
Total 3,723,642,059
4) Accounts receivable withdraw, reversed or collected during the reporting period
Provision for bad debts:
Unit: RMB
Amount of change in the period
Category Opening balance Closing balance
Provision Reversed or collected
Portfolio 1 3,531,973 94,314 3,437,659
Total 3,531,973 94,314 3,437,659
5) Top 5 of the closing balance of the other accounts receivable collated according to the arrears party
Unit: RMB
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2019
Proportion of the total
Nature of Closing balance of
Name of the company Closing balance Ageing year end balance of the
accounts bad debt provision
accounts receivable (%)
Yichang CSG Polysilicon Subsidiary 1,892,619,307 Within 1 year 51%
Wujiang CSG Subsidiary 448,490,216 Within 1 year 12%
Yichang CSG Display Subsidiary 332,108,331 Within 1 year 9%
Yichang Hongtai Real Independent
171,000,000 Over 5 years 5% 3,420,000
Estate Co. Ltd third party
Xianning CSG Photoelectric Subsidiary 162,241,720 Within 1 year 4%
Total -- 3,006,459,574 -- 81% 3,420,000
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
4,998,474,657 15,000,000 4,983,474,657 4,979,696,831 15,000,000 4,964,696,831
subsidiaries
Total 4,998,474,657 15,000,000 4,983,474,657 4,979,696,831 15,000,000 4,964,696,831
(1) Investment in subsidiaries
Unit: RMB
Provision for Closing
Opening Increase in Decrease in Closing impairment of balance of
Invested company
balance the term the term balance the current impairment
period provision
Chengdu CSG Glass Co., Ltd. 152,376,524 469,806 152,846,330
Sichuan CSG Energy Conservation 120,053,814 399,216 120,453,030
Tianjin Energy Conservation Glass Co.
248,548,885 634,014 249,182,899
Ltd
Dongguan CSG Architectural Glass Co.,
199,212,838 477,402 199,690,240
Ltd.
Dongguan CSG Solar Glass Co., Ltd. 356,240,176 591,366 356,831,542
Yichang CSG Polysilicon Co., Ltd. 642,412,100 686,166 643,098,266
Wujiang CSG North-east Architectural
255,041,613 307,404 255,349,017
Glass Co., Ltd.
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2019
Hebei CSG Glass Co., Ltd. 267,053,514 419,898 267,473,412
China Southern Glass (Hong Kong)
86,932,629 259,950 87,192,579
Limited
Wujiang CSG Glass Co., Ltd. 568,749,746 557,910 569,307,656
Hebei Panel Glass Co., Ltd. 247,051,137 331,926 247,383,063
Jiangyou CSG Mining Development Co.
102,765,652 168,264 102,933,916
Ltd.
Xianning CSG Glass Co Ltd. 181,910,111 429,570 182,339,681
Xianning CSG Energy Conservation
166,299,193 324,960 166,624,153
Glass Co Ltd.
Qingyuan CSG Energy Saving New
303,861,558 331,620 304,193,178
Materials Co.,Ltd
Shenzhen CSG Financial Leasing Co.,
133,500,000 133,500,000
Ltd.
Shenzhen CSG PV Energy Co., Ltd. 100,362,547 53,016 100,415,563
Shenzhen Nanbo Display Technology
552,517,298 865,764 553,383,062
Co., Ltd.
Xianning CSG Photoelectric Glass Co.,
90,471,501 359,226 90,830,727
Ltd.
Others(i) (ii) 204,335,995 11,110,348 215,446,343 15,000,000
Total 4,979,696,831 18,777,826 4,998,474,657 15,000,000
(2) Other notes
(i) As at June 30, 2019, 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 220,069,346 (31 December 2018: RMB 211,291,520).
(ii) 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
Other business 38,156,685 30,709,068
Total 38,156,685 30,709,068
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2019
New revenue guidelines have been implemented or not
□ Yes √ No
4. Investment income
Unit: RMB
Item Occurred in this term Occurred in previous term
Long-term equity investment accounted by cost method 390,105,325 231,537,606
Total 390,105,325 231,537,606
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 asset (including the write-off that accrued for
370,969
impairment of assets)
Governmental subsidy reckoned into current gains/losses (not including the subsidy
enjoyed in quota or ration according to national standards, which are closely 107,755,413
relevant to enterprise’s business)
Other non-operating income and expenditure except for the aforementioned items -2,626,912
Profits and losses from external entrusted loans 5,345,912
Less: Impact on income tax 15,155,936
Impact on minority shareholders’ equity (post-tax) 2,286,489
Total 93,402,957 --
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 net assets and earnings per share
The weighted Earnings per share
Profit in the report period average net Basic earnings per Diluted earnings per
assets ratio share (RMB/share) share (RMB/share)
Net profit attributable to ordinary shareholders of the Company 4.09% 0.12 0.12
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2019
Net profit attributable to ordinary shareholders of the Company after
3.08% 0.09 0.09
deducting non-recurring gains and losses
3. Difference of accounting data under domestic and overseas accounting standards
(1) Differences of the net profit and net assets disclosed in financial report prepared under international
and Chinese accounting standards
□ Applicable √ Not applicable
(2) Difference of the net profit and net assets disclosed in financial report prepared under overseas and
Chinese accounting standards
□ Applicable √ Not applicable
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