CSG HOLDING CO., LTD.
ANNUAL REPORT 2021
Chairman of the Board:
CHEN LIN
April 2022
CSG Annual Report 2021
Section I. Important Notice, Content and Paraphrase
Board of Directors and the Supervisory Committee of CSG Holding Co., Ltd. (hereinafter referred to
as the Company) and its directors, supervisors and senior executives hereby confirm that there are no
any fictitious statements, misleading statements, or important omissions carried in this report, and
shall take individual and joint legal responsibilities for the facticity, accuracy and completeness of
the whole contents.
Ms. Chen Lin, Chairman of the Board, Mr. Wang Jian, responsible person in charge of accounting
and Ms. Wang Wenxin, principal of the financial department (accounting officer) confirm that the
Financial Report enclosed in this Annual Report 2021 is true, accurate and complete.
All directors were present at the meeting of the Board for deliberating the annual report of the
Company in person.
The future plans, development strategies and other forward-looking statements mentioned in this
report do not constitute a material commitment of the Company to investors. Investors and relevant
parties should pay attention to investment risks, and understand the differences between plans,
forecasts and commitments.
The Company has described the risk factors and countermeasures of the Company's future
development in detail in this report. Please refer to Section III. Management Discussion and Analysis.
The Company shall comply with the disclosure requirements of "Shenzhen Stock Exchange Industry
Information Disclosure Guidelines No. 13 - Listed Companies Engaged in Non-Metal Building
Materials Related Business".
The deliberated and approved plan of profit distribution in the Board Meeting is distributing cash
dividend of RMB 2 yuan (tax included) for every 10 shares to all shareholders based on 3,070,692,107
shares of the total current share capital. The actual amount of the cash dividend distributed will be
determined according to the total share capital on the registration date of the Company's
implementation of the profit distribution plan.
This report is prepared both in Chinese and English. Should there be any inconsistency between the
Chinese and English versions, the Chinese version shall prevail.
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CSG Annual Report 2021
Content
Section I. Important Notice, Content and Paraphrase .................................................................................. - 1 -
Section II. Company Profile& Financial Highlights......................................................................................... - 5 -
Section III. Management Discussion and Analysis......................................................................................... - 9 -
Section IV. Corporate Governance ............................................................................................................. - 43 -
Section V. Environment and social responsibility ....................................................................................... - 60 -
Section VI. Important Events ....................................................................................................................... - 64 -
Section VII. Changes in Shares and Particulars about Shareholders ........................................................... - 75 -
Section VIII. Preferred shares ...................................................................................................................... - 81 -
Section IX. Bonds ......................................................................................................................................... - 82 -
Section X. Financial Report .......................................................................................................................... - 86 -
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CSG Annual Report 2021
Documents Available for Reference
I. Text of the financial report carrying the signatures and seals of the legal representative, responsible person in charge of
accounting and person in charge of financial institution;
II. Original of the Auditors’ Report carrying the seal of accounting firm and the signatures and seals of the certified public
accountants;
III. All texts of the Company’s documents and original public notices disclosed in the website and papers appointed by
CSRC in the report period.
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CSG Annual Report 2021
Paraphrase
Items Refers to Contents
Company, the Company, CSG or the Group Refers to CSG Holding Co., Ltd.
Foresea Life Refers to Foresea Life Insurance Co., Ltd.
Flat glass Refers to Including float glass, photovoltaic glass
Ultra-thin electronic glass Refers to The electronic glass with thickness between 0.1~1.1mm
Second-generation energy-saving glass Refers to Double silver coated glass
Third-generation energy-saving glass Refers to Triple silver coated glass
AG glass Refers to Anti-glare glass
AF glass Refers to Anti-fingerprint glass
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CSG Annual Report 2021
Section II. Company Profile& Financial Highlights
I. Company information
Code for A-share 000012 Code for B-share 200012
Short form for A-share Southern Glass A Short form for B-share Southern Glass B
Listing stock exchange Shenzhen Stock Exchange
Legal Chinese name of the Company 中国南玻集团股份有限公司
Abbr. of legal Chinese name of the
南玻集团
Company
Legal English name of the Company CSG Holding Co., Ltd.
Abbr. of legal English name of the
CSG
Company
Legal Representative Chen Lin
Registered Add. CSG Building, No.1, the 6th Industrial Road, Shekou, Shenzhen, P. R.C.
Post Code 518067
Office Add. CSG Building, No.1, the 6th Industrial Road, Shekou, Shenzhen, P. R.C.
Post Code 518067
Internet website www.csgholding.com
E-mail securities@csgholding.com
II. Person/Way to contact
Secretary of the Board Representative of security affairs
Name Yang Xinyu Chen Chunyan
CSG Building, No.1 of the 6th CSG Building, No.1 of the 6th
Contacts add. Industrial Road, Shekou, Shenzhen, Industrial Road, Shekou, Shenzhen,
P. R.C. P. R.C.
Tel. (86)755-26860666 (86)755-26860666
Fax. (86)755-26860685 (86)755-26860685
E-mail securities@csgholding.com securities@csgholding.com
III. Information disclosure and preparation place
The website of the stock exchange where
www.szse.cn
the company discloses the annual report
The name and website of the media Securities Times, China Securities Journal, Shanghai Securities News,
where the company discloses the annual Securities Daily and Hong Kong Commercial Daily, Juchao Website
report (www.cninfo.com.cn)
The place for preparation of the annual
Office of the Board of Directors of the Company
report
IV. Registration changes of the Company
Organization code Unified social credit code: 914403006188385775
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CSG Annual Report 2021
Changes of main business since listing (if
No changes
applicable)
Previous changes for controlling
No changes
shareholders (if applicable)
V. Other relevant information
CPA firm engaged by the Company
Name of CPA firm Asia Pacific (Group) CPAs (special general partnership)
Offices add. for CPA firm 2001, 20th Floor, Building 3, No. 16, Lize Road, Fengtai District, Beijing
Signing Accountants Zhou Xianhong, Wu Yiluo
Sponsor institute engaged by the Company for performing continuous supervision duties in the report period
□ Applicable √ Not applicable
Financial consultant engaged by the Company for performing continuous supervision duties in the report period
□ Applicable √ Not applicable
VI. Main accounting data and financial indexes
Whether it has retroactive adjustment or re-statement on previous accounting data
□Yes √No
Changes over the
2021 2020 2019
previous year
Operating income (RMB) 13,629,033,650 10,671,253,445 27.72% 10,472,028,099
Net profit attributable to shareholders
1,529,329,304 779,325,592 96.24% 536,430,818
of the listed company (RMB)
Net profit attributable to shareholders
of the listed company after deducting
1,439,540,257 539,976,457 166.59% 374,386,216
non-recurring gains and losses
(RMB)
Net cash flow arising from operating
3,902,084,385 2,730,619,636 42.90% 2,379,036,320
activities (RMB)
Basic earnings per share
0.50 0.25 100% 0.17
(RMB/Share)
Diluted earnings per share
0.50 0.25 100% 0.17
(RMB/Share)
Weighted average ROE (%) 14.13% 7.91% 6.22% 5.77%
Changes over the
As at 31 Dec. As at 31 Dec.
As at 31 Dec. 2020 end of the previous
2021 2019
year
Total assets (RMB) 19,939,364,510 17,882,914,898 11.50% 18,201,235,959
Net assets attributable to shareholders
11,429,661,046 10,212,989,847 11.91% 9,495,588,878
of the listed company (RMB)
The lower of the Company’s net profit before and after the deduction of non-recurring gains and losses in the last three
fiscal years is negative, and the auditor's report of the previous year shows that the Company’s going concern ability is
uncertain
□ Yes √ No
The lower of the net profit before and after the deduction of the non-recurring gains and losses is negative
□ Yes √ No
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CSG Annual Report 2021
VII. Accounting Data Differences under Chinese Accounting Standards (CAS) and
International Financial Reporting Standards (IFRS) and Foreign Accounting Standards
1. Net Income and Equity Differences under CAS and IFRS
□ Applicable √ Not applicable
No such differences for the Report Period.
2. Net Income and Equity Differences under CAS and Foreign Accounting Standards
□ Applicable √ Not applicable
No such differences for the Report Period.
VIII. Main financial indexes by quarter
Unit: RMB
Q1 Q2 Q3 Q4
Operating income 3,006,832,539 3,607,969,999 3,632,036,581 3,382,194,531
Net profit attributable to shareholders of the listed
573,268,793 779,248,672 157,313,336 19,498,503
company
Net profit attributable to shareholders of the listed
company after deducting non-recurring gains and 572,808,470 757,006,058 135,934,112 -26,208,383
losses
Net cash flow arising from operating activities 341,291,798 1,356,953,577 937,245,178 1,266,593,832
Whether there are significant differences between the above-mentioned financial index or its total number and the relevant
financial index disclosed in the Company’s quarterly report and semi-annual report or not
□Yes √ No
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CSG Annual Report 2021
IX. Items and amounts of non-recurring gains and losses
√Applicable □ Not applicable
Unit: RMB
Item 2021 2020 2019 Note
Gains/losses from the disposal of non-current asset
(including the write-off that accrued for impairment of -1,493,248 -1,158,984 -909,968
assets)
Governmental subsidy reckoned into current
gains/losses (not including the subsidy enjoyed in quota
104,507,242 99,660,400 184,131,420
or ration according to national standards, which are
closely relevant to enterprise’s business)
Profit and loss from debt restructuring -285,025
In addition to the effective hedging business related to
the normal business of the company, the profit and loss
from changes in fair value arising from holding trading
financial assets and trading financial liabilities, as well 17,132,672 2,654,504
as the investment income obtained from the disposal of
trading financial assets, trading financial liabilities and
available for sale financial assets
Reversal of provision for impairment of receivables
1,429,653
that have been individually tested for impairment
Loss and profit from external entrusted loan 5,546,384 11,894,654
Profits and losses arising from changes in the fair value
of investment real estate that are subsequently 179,911,200
measured using the fair value model
Other non-operating income and expenditure except for
-13,526,210 -6,284,556 -1,612,253
the aforementioned items
Less: Impact on income tax 14,201,899 38,334,180 25,951,263
Impact on minority shareholders’ equity (post-
3,774,138 2,645,633 5,507,988
tax)
Total 89,789,047 239,349,135 162,044,602 --
Particulars about other gains and losses that meet the definition of non-recurring gains and losses:
□ Applicable √ Not applicable
It did not exist that other profit and loss items met the definition of non-recurring gains and losses.
Explanation of the non-recurring gains and losses listed in the Explanatory Announcement No.1 on Information
Disclosure for Companies Offering their Securities to the Public - Non-recurring Gains and Losses as recurring gains and
losses
□ Applicable √ Not applicable
It did not exist that non-recurring profit and loss items listed in the "Explanatory Announcement No. 1 on Information
Disclosure of Companies Offering Securities to the Public - Non-recurring Profit and Loss" were defined as recurring
profit and loss items in the report period.
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CSG Annual Report 2021
Section III. Management Discussion and Analysis
I. Particulars about the industry the Company engages in during the report period
Flat glass industry
In the float glass industry, under the background of national supply-side reform and other policies in recent years, the
management of capacity replacement has been strictly implemented, outdated production capacity and zombie production
capacity have been gradually eliminated, and the overcapacity status of the industry has been effectively improved.
According to the statistics of third-party industry information institutions, by the end of 2021, there were 264 float glass
production lines in production in China, with a total daily melting capacity of about 175,000 tons. With the
implementation of the "Implementation Measures for Capacity Replacement in the Cement Glass Industry" on August 1,
2021, the production capacity of float glass will continue to be controlled, the market supply and demand will be in a
relatively balanced state, and the cyclical characteristics of the industry will be weakened. The traditional application
direction of float glass is mainly building materials, and its market demand change is positively related to infrastructure
investment and the prosperity of the real estate industry. At the same time, with the continuous improvement of the
proportion of green buildings, building safety requirements and the improvement of social consumption level in recent
years, the market demand of float glass has also undergone structural changes: according to the national guidelines such
as the "Action Plan for Carbon Peaking Before 2030" and the "Comprehensive Work Plan for Energy Conservation and
Emission Reduction in the 14th Five-Year Plan", by 2025, 100% of new urban buildings are required to meet the green
building standards (approximately50% in 2020).Due to the significant contribution of energy-saving glass to energy
saving in the process of building use, it can be expected that the deep processing rate of flat glass in the building materials
field will further increase during the "14th Five-Year Plan" period, which will drive the structural demand for deep-
processing high-end float products to increase. With the continuous improvement of people's living standards, the demand
for work and life improvement such as automobiles, home furnishing, and intelligence has grown rapidly, driving the
rapid increase in the demand for high-quality float glass in related application scenarios. The above-mentioned continuous
increase in demand for high-quality glass is beneficial to leading companies in the high-end market in the industry.
Photovoltaic glass products are mainly ultra-white rolled glass, which is an indispensable packaging material for
photovoltaic modules due to its high weather resistance, high transmittance and high strength after processing. In recent
years, the photovoltaic glass industry as a whole has developed rapidly with the development of technology and scale of
photovoltaic new energy industry. Photovoltaic power generation is one of the main forms of renewable energy. With the
continuous decline of photovoltaic power generation costs, it has achieved "grid parity". Photovoltaic new energy has
become the first choice for the development of renewable energy in countries around the world due to its wide adaptability
and low cost. It is expected that in the future market development will maintain a state of rapid growth. According to the
forecast of the China Photovoltaic Industry Association, the global photovoltaic installed capacity will exceed 300GW in
2025, with a compound annual growth rate of more than 20%. The continuous and rapid growth of photovoltaic installed
capacity and the increase in the penetration rate of dual-glass modules and large-scale modules will continue to drive the
growth in demand for photovoltaic glass.
The rapid growth of new photovoltaic energy has stimulated the development of the photovoltaic glass industry.
According to the industry investment in recent years, the investment of new photovoltaic glass production capacity in
2021 and 2022 is relatively concentrated. According to the statistics of third-party industry information institutions, by
the end of 2021, there were 67 photovoltaic glass kilns in production in China, with a total daily melting capacity of more
than 40,000 tons, an increase of nearly 40% year-on-year. The domestic photovoltaic glass output exceeded 10 million
tons for the first time in 2021.The "Implementation Measures for Capacity Replacement in the Cement Glass Industry"
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CSG Annual Report 2021
clarifies that "the capacity replacement measure is not applied in the photovoltaic rolled glass project". In the future, the
new capacity of photovoltaic glass will be adjusted and controlled through the overall control of local energy consumption
and the conclusion of feasibility seminar by industry experts to demonstrate. According to the capacity construction plan
disclosed by enterprises in the industry, it is expected that the new production capacity of photovoltaic glass will maintain
a relatively high growth rate in 2022.
In addition, environmental protection is the lifeline for the survival and development of flat glass companies, and it is a
concentrated expression of corporate social responsibility in high-energy-consuming industries. As early as more than ten
years ago, CSG took the lead in realizing the use of clean energy natural gas in all melting furnace production lines.
Compared with other fuels, its combustion calorific value is stable, its carbon emission is relatively low, it is purer, and
it does not contain sulphur and other hazardous substances. Using natural gas as heat source for production is more
environmentally friendly and helps to improve product quality. At the same time, CSG takes the lead in the industry to
realize comprehensive utilization of energy by means of waste heat power generation and distributed photovoltaic power
generation. Through comprehensive exhaust gas treatment such as desulfurization, denitrification and dust removal, it
achieves ultra-low emission, which is far lower than the national standard pollutant emission permission value. A number
of the Group's flat glass subsidiaries have reached the industry energy efficiency benchmark level. In 2021, the Ministry
of Industry and Information Technology popularized the practice of Wujiang CSG as the "Energy Efficiency Leader" to
the whole flat glass industry. In the era of carbon peaking and carbon neutrality, energy saving and emission reduction,
relatively low energy consumption and high energy efficiency will bring higher competitiveness and greater living space
to enterprises.
Architectural glass industry
The architectural glass business is to further process the original float glass sheet to manufacture energy-saving building
glass products with both safety and aesthetic effects in order to improve the energy-saving and safety performance of
buildings, as well as the visual aesthetic effects. Building energy-saving glass has made a significant contribution to
energy saving in the process of building use. The penetration rate in developed countries in Europe and the United States
has already exceeded 80%, but the overall penetration rate in China is still low. The total number of buildings in China is
huge and continues to grow every year. In order to cope with the pressure of global warming, to achieve the goals of
"Carbon Peaking in 2030 and Carbon Neutrality in 2060", and to reduce building energy consumption and carbon
emissions, it is imperative to reduce the energy consumption and carbon emissions of buildings, to vigorously develop
green buildings, and to carry out energy-saving renovation of existing buildings. According to the "Action Plan for
Promoting the Establishment of Green Buildings" issued by the Ministry of Housing and Urban-Rural Development and
the Ministry of Industry and Information Technology, as well as the national "Action Plan for Carbon Peaking Before
2030", "Comprehensive Work Plan for Energy Conservation and Emission Reduction during the 14th Five-Year Plan"
and other guidance documents, 70% of the newly-built urban building should reach green building standards in 2022, and
100% reach the standard in 2025 (about 50% in 2020). It is expected that the architectural glass business will gain
significant development opportunities during the "14th Five-Year Plan" period. In addition, with the gradual improvement
of domestic social consumption level in recent years, building energy conservation, safety standards and quality
requirements have been continuously improved. In practice, the bad practice of winning the bid by the lowest price for
construction projects has been initially reversed, and the quality and influence of "Made in China" have been increasingly
recognized around the world, which will bring broader development space to advantageous enterprises that attach
importance to product quality and technological innovation, as well as stable industrial chain and supply chain.
Electronic glass and display industry
Electronic glass
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CSG Annual Report 2021
Electronic glass, with its unique performance advantages such as high transmittance, high strength in ultra-thin state,
reliable and stable weather resistance, and processing convenience, is an indispensable material for cover glass and touch
control plate of intelligent display interactive application terminals such as smartphones, tablets, and computers. And it
is developing rapidly with the intelligent interactive display industry. With the popularization of information and
communication technologies such as 5G and the development of the mobile Internet, the production and lifestyle of human
society are gradually developing into a new form of high integration of people, machines, things, and information, in
which everything is interconnected, driving the demand for intelligent equipment to increase rapidly and significantly .In
recent years, in addition to the rapid popularization of mobile Internet terminals such as smartphones, tablets, and
computers, the vigorous development of smart homes, smart cars, smart factories, smart business displays, advanced
education, medical care, conferences, self-service and other industries has brought about the incremental demand for
human-computer interaction equipment, which provides a broader market prospect and market space for the electronic
glass industry, and also provides a market opportunity for leapfrogging development to upstream material manufacturers
with leading technological innovation capability and benign operation.
Display
CSG has become a brand supplier of electronic application materials in the display touch industry, which can provide
customers with all-round one-stop touch screen material solutions. In the future, the Company will continue to optimize
the layout in the vehicle field, to further build the high-end manufacturing industry chain of vehicle touch display, aiming
at becoming a high-quality component supplier in the field of automotive electronics. With the continuous deepening of
the trend of vehicle electrification, intelligence and interconnection, it will promote the iterative upgrade of traditional
displays and entertainment systems, and the demand for vehicle displays will be strong. According to statistics from
relevant market research institutions, the global automotive display screen output in 2020 was 127 million pieces. The
market research institution said that the global automotive display market will continue to grow in the future, with a
compound annual growth rate, from 2021 to 2027, reaching 13%.The Company continues to be optimistic about the
development prospect of the intelligent vehicle industry. At present, CSG have mastered the production technology of
core products such as on-board AG glass, on-board multi-functional 3A cover plate and on-board touch sensor supporting
the vehicle central control screen. It has become a high-quality on-board product material supplier in the field of
automotive electronics and will have broad market prospects in the future.
Solar energy industry
At present, the new development ideology centred on "Green Development" has gradually become the consensus of all
countries in the world. Major economies in the world have successively proposed "carbon neutrality" timetables. China
has also made a solemn commitment of "Carbon Peaking in 2030 and Carbon Neutrality in 2060"to the world. The
transformation of the global energy structure has begun to accelerate, and photovoltaic energy has become an important
engine to undertake energy transformation with its significant advantages such as cleanliness, safety, and economy.
Driven by favorable factors such as the continuous decline in the cost of photovoltaic power generation and the global
green recovery, the new installed capacity of photovoltaics around the world will continue to grow rapidly, and the solar
photovoltaic industry will have huge development potential and industry prospects in the future.
According to the national "Carbon Peaking Action Plan before 2030",the proportion of China's non-fossil energy
consumption will reach the target of about 20% by 2025 and about 25% by 2030,corresponding to the domestic average
annual new installed capacity demand may exceed 75GW.According to the association's forecast, it is expected that during
the "14th Five-Year Plan" period, the average annual installed capacity of photovoltaics in the world will exceed 220GW,
and in 2025the new installed capacity of photovoltaics in the world will exceed 300GW, with a compound annual growth
rate of more than 20%.The huge incremental market demand will stimulate and drive the sustained and rapid growth of
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CSG Annual Report 2021
all links of the photovoltaic industry. At present, most of the production capacity at the manufacturing end of the global
photovoltaic industry chain is controlled by Chinese enterprises.
At present, the solar energy industry has fully entered the era of "grid parity" on the power generation side, and the
electricity market continues to force the cost of the photovoltaic industry to decrease. With the rapid development of
technology in the photovoltaic industry, equipment and products are constantly upgraded, and the latecomer advantage is
obvious and the market competition is fierce. In recent years, the concentration of various links in the industrial chain has
accelerated, and capital has been concentrated in enterprises with resource advantages or technological advantages. In
order to strengthen the ability to resist risks, leading enterprises have extended their industrial chains upstream and
downstream, or formed alliances with enterprises in other links of the industrial chain.
II. Main business of the company during the report period
CSG is a leading domestic brand of energy-saving glass and a renowned brand of solar PV products and display devices.
Its products and technologies are very popular at home and abroad. Its main business covers R&D, manufacturing and
sales of high quality float glass and architectural glass, photovoltaic glass, silicon material, renewable energy products
such as PV battery and modules, and new materials and information display products such as ultra-thin electronic glass
and display devices. It also provides one-stop services such as project development, construction, operation and
maintenance of solar photovoltaic power plants.
Flat glass business
The flat glass business of CSG includes float glass and photovoltaic glass. The production mode, business strategy,
technical requirements and development direction of the two businesses have similarities and considerable differences
due to the difference of industrial chain environment, industry development stage and policy environment.
In the field of float glass, CSG has 10 advanced float glass production lines in Dongguan, Chengdu, Langfang, Wujiang
and Xianning, and has quartz sand raw material processing and production bases in Jiangyou, Sichuan and Qingyuan,
Guangdong. The annual output of various types of high-grade float glass is about 2.47 million tons, covering high-quality
float glass and ultra-white float glass with various thicknesses and specifications of 1.3-25mm. The performance
indicators of the products have reached the leading domestic level. CSG float glass products are all high-end products
that can be directly used for downstream deep processing, and the proportion of differentiated glass products with special
specifications and special application scenarios such as ultra-white, ultra-thin, and ultra-thick is large, which are widely
used in high-end building curtain walls, decoration and furniture, mirrors, car windshields, scanners and copiers, home
appliance panels, display protection and other applications that require high glass quality. CSG has established long-term
and stable business cooperation with many well-known processing enterprises.
The profit level of the float glass business is generally positively correlated with the level of real estate completion data,
and is also affected by multiple factors such as current energy, raw material prices, product structure, and enterprise
management level. Differentiated glass products have relatively high added value due to specific application scenarios,
high production process difficulties, stable demand, and relatively proactive pricing by manufacturers. The Company
focuses on improving management efficiency, improving the level of lean production of conventional products, firmly
implementing the differentiated competition strategy, carefully cultivating and developing differentiated product markets,
and continuously increasing the proportion of differentiated product sales, so as to continuously consolidate and enhance
the industry competitiveness of the Company's float glass business.
In the first half of 2021, the completion level of the real estate industry accelerated compared to the same period in recent
years, the market demand was strong, the supply was tight, and the overall price of float glass was higher than the same
period of last year. From the third quarter, the liquidity of real estate enterprises was under pressure, the completion level
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CSG Annual Report 2021
dropped, the supply-demand relationship of float glass fell back to a relatively balanced level, while the prices of soda
ash and other raw materials rose sharply month on month and year on year, so that the price and profit level of float glass
fell. It is expected that the market demand for float glass in 2022 will decline compared with that in 2021. However, under
the general atmosphere of "Steady Growth" of the national economy, the supply and demand of the glass market may be
in a relatively loose and balanced state, and the demand for high-quality differentiated products will remain stable.
In the field of photovoltaic glass, CSG has taken the lead in entering the field of photovoltaic glass manufacturing in
China since 2005. Based on independent research and development, the Company has formed a full closed-loop
production capacity from photovoltaic glass original sheet production to deep processing. By the end of 2021, it has two
photovoltaic rolled glass original sheet production lines and complementary photovoltaic glass deep processing
production lines in Dongguan and Wujiang, with an annual output of about 430,000 tons of photovoltaic rolled glass
original sheets and a photovoltaic glass deep processing capacity of 72 million square meters per year, and its products
cover deep-processing products with a variety of thicknesses of 2-4mm.The accumulation of more than ten years of
photovoltaic glass production experience has enabled CSG to accumulate a solid foundation in key equipment and
technologies such as kilns, calendering, and deep processing. These accumulated technologies and experience have been
released in this round of the Company's photovoltaic glass production capacity enhancement.
The Company is firmly optimistic about the long-term development of the photovoltaic new energy industry, seizes the
golden opportunity of industrial development, aims at the first echelon of the industry, and makes up for the shortcomings
of the Group's photovoltaic glass business production capacity and large-scale layout. The Company is building four
photovoltaic glass production lines and complementary processing lines with a daily melting capacity of 1,200 tons in
Fengyang and one photovoltaic glass production line and complementary processing line with a daily melting capacity of
1,200 tons in Xianning. At present, the construction of the above projects is progressing in an orderly manner as planned
and is expected to be ignited and put into operation in batches from the second quarter of 2022.After all the projects are
put into production, the industry status will jump significantly. In addition, with the approval of the Board of Directors,
the Company plans to build two photovoltaic glass production lines and complementary processing lines with a daily
melting capacity of 1,200 tons in Beihai City, Guangxi. Currently, the preparatory work for the project is being carried
out in an orderly manner. At the same time, the Company is still actively seeking to further expand the production capacity
of photovoltaic glass in other regions with resource support and industrial chain support. Under the background of carbon
peaking and carbon neutrality, the photovoltaic glass business will become the new champion business of CSG.
In 2021, affected by the overseas epidemic and the high price of materials in the upstream of the photovoltaic industry
chain, the installed capacity demand was suppressed to a certain extent, and the growth rate was not as expected. Even
so, according to relevant statistics, the new global installed capacity in 2021 still reached about 170GW, with a year-on-
year increase of more than 30%. It is estimated that in 2022, driven by policies such as the promotion of domestic
distributed photovoltaics throughout the county, large-scale wind power photovoltaic bases, and guaranteed photovoltaic
grid-connection, as well as the carbon neutrality plans disclosed by countries around the world, the global installed
capacity may still maintain a relatively high growth rate. Although the concentrated deployment of photovoltaic glass
production capacity in the past two years may lead to a phased mismatch between supply and demand in the market,
causing market price fluctuations. With the incremental demand brought about by the continuous increase in global
installed capacity and the natural elimination of outdated production capacity by the market, the industry will still return
to the track of healthy development. In 2022, the Company will make every effort to promote the project construction,
accelerate the technological transformation and upgrading of production lines, improve the production capacity of ultra-
thin photovoltaic glass for 1.6-2.5mm double-glass modules and photovoltaic glazed back glass, and consolidate the
Company's competitive advantage in the field of ultra-thin photovoltaic glass; and strengthen long-term strategic
cooperation with industry-leading companies to further enhance the market competitiveness of CSG's flat glass.
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CSG Annual Report 2021
Architectural glass business
CSG is one of the largest suppliers of high-grade engineering and architectural glass in China and it has formed quality,
service and continuous research and development capabilities that match the brand. The Company has built six energy-
saving glass processing bases in Tianjin, Dongguan, Xianning, Wujiang, Chengdu and Zhaoqing. Up to now, the
Company has formed an annual production capacity of over 20 million square meters for coated insulating glass and over
45 million square meters for coated glass. In order to seize the key opportunities for the development of building energy-
saving glass and satisfy the people's pursuit of a better life, CSG leverages its brand advantages to take the lead in
improving the business layout of architectural glass. At present, the production capacity of Zhaoqing Base and Tianjin
Expansion Project is gradually being released, which further strengthens the ability of CSG's architectural glass to meet
the needs of the construction of world-class mega-city clusters in the Beijing-Tianjin-Hebei, Yangtze River Delta, and
Guangdong-Hong Kong-Macao Greater Bay Area. At the same time, in line with the trend of urban construction extending
further inland, the Group's Board of Directors approved the construction of Xi'an Architectural Glass Base, Hefei Energy-
saving Glass Intelligent Manufacturing Industry Base and Xianning Architectural Production Line Reconstruction and
Expansion Project in 2021. Based on the local market conditions, the Company will arrange first-level or second-level
architectural glass processing bases that are suitable for their scale and needs, and continuously improve and strengthen
the market competition and service capabilities of CSG’s architectural glass business. At present, Wujiang Architectural
Glass Smart Factory, Hefei Base and Xianning Architectural Production Line Reconstruction and Expansion Project are
being implemented as planned. As the new projects are gradually completed and put into production, the production
capacity of CSG's architectural glass will be gradually released, and the market share of the products will be further
increased. CSG's architectural glass business adheres to the customized business strategy of trinity of technical service,
marketing, R&D and manufacturing, relying on its own manufacturing and R&D strength, as well as the marketing and
service network formed by more than 100 domestic and overseas offices, to meet the personalized needs of domestic and
foreign customers and construction projects. In 2017, CSG's low-E coated glass was awarded the title of Single Champion
Product by the Ministry of Industry and Information Technology, and it passed the review again in 2020, which fully
proves the leading position of CSG's architectural glass in the industry. The Company has the world's leading glass deep
processing equipment and testing equipment, and its products cover all kinds of architectural and construction glass. The
Company's R&D and application of glass coating technology keep space with the world and its technology of high-end
product even leads the world. Following the second generation of energy-saving glass products, the Company has
successively developed the third generation and multi-function energy-saving glass products with continuous improving
energy-saving and heat-preservation effect. All deep processing bases have the production and processing capabilities of
triple-silver high-performance energy-saving glass. After years of market testing, due to its high performance and stability,
the Company has become a benchmark in the domestic triple-silver product market, and its high-quality energy-saving
and environmentally friendly low-E insulating glass continues to lead the domestic high-end market share. The Company
has always adhered to the intelligent transformation and digital transformation as the key increment of the development
of architectural glass business. It has continuously invested and accumulated rich experience in the research of production
automation, intellectualization, information technology and equipment, and the efficiency improvement of intelligent
upgrading and transformation of traditional equipment. With technological progress and process optimization, the
Company has reduced production manpower consumption, material consumption and energy consumption, actively
promoting the Company's transformation and upgrading to achieve intensive manufacturing and high-quality
development.
The Company’s quality management system for engineering and architectural glass has been respectively approved by
organizations of UK AOQC and Australia QAS. The product quality which meets the national standards of the US, the
UK and Australia enables CSG has an advantage in the international tendering and bidding. Since 1988, CSG's engineers
and technicians have been continuously participating in the formulation and compilation of various national standards
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CSG Annual Report 2021
and industry standards. All kinds of high-quality engineering architectural glass provided by the Company are widely
used in landmark buildings such as major city CBDs and transportation hubs at home and abroad, which are too numerous
to mention. The 2022 Beijing Winter Olympics, which has attracted worldwide attention, has just accomplished
successfully. The keynote of this Winter Olympics is "Green Winter Olympics". CSG’s Glass is honored to be selected
for the construction of quite a few related venues for the Beijing Winter Olympics with its safety, energy saving and high-
end quality, including National Speed Skating Hall, National Ski Jumping Center, Shougang Ski Jumping Platform,
Beijing Olympic Village and many other representative projects. CSG’s products are once again stunningly displayed in
front of the world, with the projects using CSG’s products appeared frequently in the past, such as Capital International
Airport, Daxing International Airport, National Convention Center, as well as the projects in Capital CBD Area, which
contributed a unique and beautiful landscape to the wonderful and extraordinary Olympic Games.
Electronic glass and display business
Electronic glass
After ten years of hard work, CSG’s electronic glass business has always focused on increasing investment in R&D,
breaking through high-end market barriers with independent intellectual property rights and independent innovation, and
firmly following the development route of product upgrades and iterations to accelerate import substitution, and it has
become another champion business of CSG. In 2021, the Company's electronic glass business continues to develop. Its
four subsidiaries, Hebei Panel, Yichang Photoelectric, Qingyuan New Energy-Saving Materials and Xianning
Photoelectric continued to actively implement product upgrading and market upgrading in the application fields of
intelligent electronic terminals, touch components, vehicle mounted display, industrial control and commercial display,
safe-guard facility and smart home, so that the market share and brand influence of the Company's medium-alumina and
high-alumina electronic glass products could improve greatly. Rich product structure, reliable delivery guarantee and
strong technical innovation help the Company’s electronic glass business maintain its dominant position in the fierce
market competition. In 2021, the Company's high-alumina second-generation (KK6) lithium-aluminosilicate electronic
glass products are widely used by domestic high-end brand customers, which marks that CSG's electronic glass business
has successfully opened up the domestic high-end customer market. At the same time, the Company continued to promote
technological breakthroughs in product upgrading. During the year, the second-generation high-alumina upgraded product
of Xianning Photoelectric, KK6-P, was successfully industrialized. The technical performance of the product such as light
transmittance, anti-drop and scratch resistance after strengthening was further improved. The third generation of high-
alumina products of the Company has been verified, and the sustainable iterative renewal ability of electronic glass has
been fully recognized by the market and customers. In addition, Qingyuan CSG Phase II "One Kiln and Two Lines"
project, which was put into commercial operation at the end of 2020, is in good operation, effectively enhancing the
overall profitability of electronic glass, and further consolidating and strengthening CSG's competitive advantage in the
field of domestic electronic glass.
In March 2021, in order to strengthen the Company's high-end market competitiveness in the field of ultra-thin electronic
glass for touch applications, the Company's Board of Directors approved Hebei Panel to invest in a new ultra-thin
electronic glass production line and complementary R&D center with a daily melting capacity of 110 tons. In December
2021, the Company's Board of Directors approved the upgrade and renovation project of Qingyuan CSG Phase I. At
present, the project construction is progressing smoothly as planned. After the completion of the above-mentioned projects,
CSG Electronic Glass will achieve comprehensive coverage of electronic glass products from the third generation of high-
alumina to medium-alumina, soda-calcium, and from high to middle and low-end electronic glass products, forming a
more solid foundation for market competition. CSG has long been committed to becoming the industry's leading
electronic glass material solution provider, and it will continue to develop glass-based protective materials with higher
strength and competitiveness in the field of touch display, develop human-computer interaction interface materials
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CSG Annual Report 2021
meeting the requirements of material interconnection in the fields of smart home, vehicle display and advanced medical,
and develop revolutionary alternative materials in the fields of transportation and security.
Display
In the field of touch display, CSG has formed a complete touch industry chain from vacuum magnetron sputtering coating,
fine pattern lithography processing, to touch display modules. Its main business includes ITO conductive glass, ITO
conductive film, automotive TP-Sensor and automotive cover. Among them, ITO conductive glass and ITO conductive
film, as the traditional business of the Company, are positioned at the middle and high-end customers at home and abroad,
and in 2021 ITO glass market had adequate orders, and production and sales volume reached a record high. The
Company's key products such as vehicle-mounted AG glass, vehicle-mounted multi-functional composite cover, vehicle-
mounted TP-Sensor and other core products have successfully entered the market and become the Company's new
performance growth point.
Solar energy and other industries
CSG is one of enterprises which firstly enter the field of photovoltaic product manufacturing in China. After more than
ten years of construction, operation and technological upgrading, CSG has built an industry chain in the field, covering
high-purity polycrystalline silicon materials, high-efficiency silicon wafer, silicon solar cell and modules, and the design
and construction of solar photovoltaic power plants. The business structure of the whole industry chain enables the
Company to have a certain ability to resist risks, be sensitive to the industry, and be able to identify and respond to subtle
changes in the industry in a timely manner, but it also increases the Company's burden of product R&D, and equipment
and technology upgrading. Therefore, in recent years, the Company has reviewed and adjusted the solar business structure
on the basis of objectively analyzing the advantages and disadvantages of its own industry, taking into account the market
environment, industry development trends and the Group's overall industrial development plan, actively eliminating
outdated equipment and production capacity, and opening up cooperation and integrating resources of all parties to
promote the overall breakthrough of the solar energy business. To this end, while eliminating the invalid assets of Yichang
CSG and Dongguan photovoltaic enterprises and reducing the burden of enterprise operation, the Company firmly
promoted the implementation of technical transformation and resumption of production of polysilicon production line,
revitalized the effective assets, seized the favorable opportunity of insufficient structural supply of polysilicon in the
industry, and used its own advantages to consolidate and strengthen the strategic cooperation with downstream business
partners of the industrial chain. Considering the practical needs of matching the development of the Group's photovoltaic
glass business, driving the growth of the manufacturing end and the accumulation of the Group's own carbon emission
quota, the Company also plans to moderately increase investment in photovoltaic power station projects. The above
adjustments have been gradually implemented. In 2021, the Group made a provision for asset impairment of about 700
million yuan for assets of solar energy business. With the smooth resumption of polysilicon production in the first quarter
of 2022, the Company's current solar business capacity is 10,000 tons/year of high-purity polysilicon, 2.2 GW/year of
silicon wafer, 0.6 GW/year of battery wafer, 0.6GW/year of module and 132 MW of photovoltaic power station.
III. Core Competitiveness Analysis
CSG, one of the most competitive and influential large-scale enterprises in China's glass industry, is committed to the
development of energy conservation renewable, and new material industry. After more than 30 years of development and
accumulation, the Company has gradually formed a comprehensive competitive advantage in terms of products and
brands, technology research and development, industrial chain and layout, talent team, and green development.
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CSG Annual Report 2021
1. Product and brand advantages
"CSG" is a famous brand of domestic energy-saving glass, ultra-thin electronic glass, display and solar photovoltaic
products. Its products and technology are well-known at home and abroad. The trademarks "南玻" and "SG" held by the
Company are both "Famous Trademark of China". The Company has been listed in the "Top 50 Building Materials
Enterprises in China", "Top 100 Industry Leaders in Shenzhen" and "Preferred Brand of Architectural Glass" in Door and
Window Curtain Wall Industry for many years. In 2018,"CSG" brand was recognized by the United Nations Industrial
Development Organization as the fourth batch of "International Reputation Brand". CSG’s low-E coated glass and ultra-
thin electronic glass were awarded the title of Single Champion Product by the Ministry of Industry and Information
Technology, and it is the only manufacturer in the domestic glass industry that has two single champion products at the
same time.
2. Technology research and development advantage
The Company has always attached importance to technology research and development since its establishment, and has
taken independent R&D as its foundation by which leading the development of China's glass industry. As of December
31, 2021, the Company has a total of 18 high-tech enterprises,2 national manufacturing single champion products, 1
national engineering laboratory, 1 national enterprise technology center, 3 national intellectual property advantage
enterprises,5 national-level specialized and sophisticated "Little Giant"enterprises,2 provincial-level academician
workstations, 10 provincial-level enterprise technology centers, 5 provincial-level engineering technology research
centers, 4 provincial-level intellectual property demonstration construction enterprises, 2 provincial-level specialized and
sophisticated small and medium-sized enterprises, 5 provincial-level science and technology little giants; 1 Shenzhen
engineering laboratory, 1 municipal post-doctoral innovation practice base, 7 government quality awards; 5 provincial
scientific and technological progress awards, 2 provincial patent awards, and a number of association honorary awards.
By the end of 2021, the Company had applied for a total of 2,242 patents, including 922 inventions, 1,313 utility model
patents, and 7 designs. The Company had been accumulatively authorized 1,624, including 304 inventions, 1,313 utility
models, and 7 designs.
3. Industrial chain and layout advantages
The Company has three complete industrial chains of energy-saving glass, electronic glass and display, and solar
photovoltaic. With the continuous improvement of the technological level of each link of the industrial chain, the
industrial advantage is obvious. At the same time, the Company possesses a complete industry layout. The six major
production bases are located in the Yangtze River Delta in East China, the Pearl River Delta in South China, the Chengdu-
Chongqing region in Southwest China, Beijing-Tianjin-Hebei region in North China, and the Hubei region in Central
China.
4. Talent team advantage
The advantage of the Company’s talent team is mainly reflected in two aspects: On the one hand, the Company has
established a strong R&D team and R&D system. Through the construction of the core technical team, continuous R&D
investment, and abundant technical reserves, it has built up important technological innovation support for the Company’s
strategy. Meanwhile, it establishes Industry-University-Research cooperation, actively cooperating with domestic
colleges and universities which are in advantage in silicate materials industry, to accelerate the transformation of scientific
research results, and to strengthen basic research; on the other hand, an excellent and stable management team is one of
the most fundamental guarantees for the Company’s rapid and stable development. The Company has formed a good
echelon training mechanism for professional managers. At present, the Company's senior management team has
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CSG Annual Report 2021
comparative advantages in terms of academic background, professional qualities, knowledge reserves, management
concepts and experience.
5. Green development advantage
The Company prospectively chooses the enterprise development path of environmental protection and green development.
Environmental protection is the lifeline of the survival and development of glass enterprises and the concentrated
embodiment of corporate social responsibility in high energy consuming industries. As early as more than ten years ago,
CSG took the lead in the industry to use natural gas in all furnace production lines, and at the same time took the lead in
the industry to adopt waste heat power generation, distributed photovoltaic power generation and other methods to achieve
comprehensive energy utilization, and adopt comprehensive exhaust gas treatment such as desulfurization, denitration
and dust removal to achieve ultra-low emission, which is far lower than the national standard pollutant emission
permission value. Promoted by the goal of "Carbon Peaking and Carbon Neutrality" and the continuous tightening of
environmental protection policies, the Company, as a pioneer in the green development of the industry, has won a broad
development space for itself.
IV. Main business analysis
1. Overview
In 2021, the global COVID-19 epidemic and its influence continued, the world economic recovery was underpowered,
the commodity prices fluctuated, the external environment became more complex, severe and uncertain. Facing the
complex and severe domestic and international situation as well as many risks and challenges, the Party and the
Government coordinated the epidemic prevention and control, together with economic and social development. With the
joint efforts of the people of the whole country, the domestic production and living order has been rapidly restored, and
the economic recovery trend has continued to improve. The country has won the battle against poverty and built a
moderately prosperous society in all respects as scheduled, and the "14th Five-Year Plan" has made a smooth start.
According to the data released by the National Bureau of statistics, in 2021, China's national economy made steady
progress. The GDP of the whole year was 114.37 trillion yuan, with a year-on-year increase of 8.1%, the investment in
fixed assets (excluding farmers) was 54.45 trillion yuan, with a year-on-year increase of 4.9%, the investment in real
estate development was 14.76 trillion yuan, with a year-on-year increase of 4.4%, and the completed area of houses was
1.014 billion square meters, with a year-on-year increase of 11.2%.
"GLASS FOR WORLD, CSG FROM CHINA", facing the severe economic environment, competitive pressure and the
challenges of the epidemic, CSG, under the correct leadership of the Board of Directors, takes the world-class enterprise
as the goal, firmly takes the road of high-quality development, comprehensively improves the level of lean production,
actively promotes project construction, improves industrial layout, tamps resource reserves, continuously promotes
differentiated operation, improves the level of intelligent manufacturing, and strengthens its core competitiveness from
both connotation and extension. The Group's annual operating performance has achieved a significant year-on-year
increase. During the report period, the Company achieved operating revenue of 13.629 billion yuan, a year-on-year
increase of 27.72%; based on the principle of prudent and stable operation, the Company accrued about RMB 1.136
billion for asset impairment during the report period. After asset impairment, the Company still achieved a net profit of
RMB 1.561 billion in 2021, with a year-on-year increase of 92.28%; the net profit attributable to shareholders of listed
companies was 1.529 billion yuan, a year-on-year increase of 96.24%.
I. Operation of each industry of the Group
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CSG Annual Report 2021
In recent years, CSG has made a forward-looking layout, firmly promoted the adjustment of business structure in the
process of development, strengthened the competitive advantage of traditional energy-saving building materials, and
accelerated the development of new energy and new material industries. In 2021, the Company's main business of four
types of glass achieved a total operating revenue of 12.745 billion yuan and a net profit of 2.554 billion yuan, of which
float glass business and electronic glass business both achieved the best performance in history, and the construction of
photovoltaic glass and engineering glass projects was smoothly promoted. In the future, the effect of the Group's business
structure adjustment will gradually appear.
Float Glass focusing on the new demands brought about by the continuous improvement of building energy conservation,
visual effects and safety, the Company lays out arrangements ahead of schedule and firmly follows the route of high-end
differentiated products: sales of ultra-white glass further increase, and the high-end series of CSG ultra-white "Blue
Diamond" are created and the brand become a leader in subdivision of the industry; the proportion of high value-added
differentiated products continues to increase, and the market share in the segment of high-grade float glass continues to
lead; coordinates and organizes strategic reserve procurement of bulk raw materials to effectively hedge against rising
procurement costs; establishes a mineral resources management center to comprehensively implement the strategic task
of expanding mineral resources reserves; strengthens the lean control of the entire production process, and the yield
continues to rise steadily. In 2021, compared with the same period last year, the revenue of float glass business increased
by 47% and the net profit increased by 170%.
Photovoltaic glass continues to lead the industry in production capacity, quality and comprehensive manufacturing yield
of ultra-thin photovoltaic glass products below 2mm.In 2021, due to factors such as the weaker-than-expected growth of
photovoltaic installed capacity and the successive launch of new photovoltaic glass production capacity, the average price
of photovoltaic glass fell year-on-year. Compared with the same period last year, the revenue of photovoltaic glass
business was steady, and the net profit dropped by 38%.However, the Company is firmly optimistic about the long-term
development of the photovoltaic new energy industry, and accelerates the construction of photovoltaic glass projects in
Fengyang and Xianning. It is expected to be put into operation in batches from the second quarter of 2022.At the same
time, it pays close attention to the transformation and upgrading of Dongguan photovoltaic glass production line to make
it adapt to the future industrial technology development and product competition. After all the projects under construction
are put into production, the Company's annual production capacity of photovoltaic glass will sharply increase, breaking
into the top tier.In order to adapt to changes in business scale, to integrate resources and improve efficiency, it establishes
of a photovoltaic glass marketing center, which is responsible for the Group's photovoltaic glass marketing. The
photovoltaic glass business is gradually developing into the new champion business of CSG.
Architectural glass is the golden brand of CSG, and it has formed quality, service and continuous research and
development capabilities that match the brand. Focusing on the Country's improvement of building energy-saving
standards and high-rise building safety standards, it strengthens brand building and adheres to the customized business
strategy of trinity of technical service, marketing and R&D and manufacturing, to meet the personalized needs of domestic
and foreign customers and construction projects. As the Company's architectural glass business mainly adopts a
customized business strategy, there is a certain time lag between the order and the actual production and delivery of
products, and there is a certain delay in the transmission of changes in procurement costs to the downstream due to the
constraints of the agreement. Therefore, the sudden sharp fluctuation of the price of the original float glass during the
period will have a certain impact on the cost and profit of the actual delivery of existing orders. In the first half of 2021,
the price of the original float glass sheet rose rapidly and remained high, while the acceleration of the completion of
downstream enterprises exacerbated the tension of product delivery, and the profit of architectural glass decreased
significantly year-on-year. In the second half of the year, the original float glass sheet price fell, the newly signed orders
were started and implemented one after another, and the performance of architectural glass business gradually returned
to the normal level. By refining the market layout, strengthening risk control and continuously strengthening the signing
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CSG Annual Report 2021
of high-quality projects, the Company's architectural glass business revenue increased by 24% year-on-year. Affected by
the sharp year-on-year rise of comprehensive costs such as float glass in the report period and the commercial acceptance
bills issued by Evergrande and its subsidiaries were expected to be difficult to be cashed in the near future for which the
provision was made for bad debts of about 103 million yuan, and the profit dropped by 76% year-on-year. At present,
through continuous" Cost Reduction and Efficiency Increase" and sales policy adjustment, and taking advantage of the
Group's industrial chain to adopt a flexible raw material inventory reserve strategy, it is expected that the impact of
fluctuations in raw material prices will be further reduced in the future, and revenue and profit will maintain a steady
growth trend. At the same time, the Company focuses on the future, seizes the historic opportunity of speeding up green
building construction, accelerates the construction of new bases, improves the automation and informatization level of
production lines, continuously improves equipment production efficiency, and takes the lead in future industry
competition. At present, Zhaoqing Base and Tianjin Expansion Project production capacity is gradually being released.
Wujiang Architectural Glass Intelligent Factory, Hefei Energy-saving Glass Intelligent Manufacturing Industry Base and
Xianning Architectural Production Line Reconstruction and Expansion Project are being implemented as planned,
expected to be basically completed in 2022, and the construction of Xi'an Base project is expected to start within this year.
With the gradual completion and launch of new production capacity, the product service capability and market share will
continue to increase, and the golden signboard of CSG architectural glass will become brighter and brighter.
Electronic glass and display business focusing on increasing R&D investment, the Company breaks through high-end
market barriers with independent intellectual property rights and independent innovation, and firmly takes the
development route of product upgrading and iteration to accelerate import substitution. Electronic glass has become
another champion business of CSG. In 2021, the Company's high-alumina second-generation (KK6) lithium-
aluminosilicate electronic glass products were widely used by domestic high-end brand customers, which marked that
CSG's electronic glass business had successfully opened up the domestic high-end customer market. At the same time,
the Company continued to promote technological breakthroughs in product upgrading. During the year, the second-
generation high-alumina upgraded product of Xianning Photoelectric, KK6-P, was successfully industrialized. The
technical performance of the product such as light transmittance, anti-drop and scratch resistance after strengthening was
further improved. The third generation of high-alumina products of the Company have been verified, and the sustainable
iterative renewal ability of electronic glass has been fully recognized by the market and customers. In addition, Qingyuan
CSG Phase II "One Kiln and Two Lines" project, which was put into commercial operation at the end of 2020, is in good
operation, effectively enhancing the overall profitability of electronic glass, and further consolidating and strengthening
CSG's competitive advantage in the field of domestic electronic glass.
In March 2021, in order to strengthen the Company's high-end market competitiveness in the field of ultra-thin electronic
glass for touch applications, the Company's Board of Directors approved Hebei Panel to invest in a new ultra-thin
electronic glass production line and supporting R&D center with a daily melting capacity of 110 tons. At present, the
project construction is progressing smoothly as planned. In December 2021, the Company's Board of Directors approved
the upgrade and renovation project of Qingyuan CSG Phase I. After the completion of the above two projects, CSG's
electronic glass will achieve comprehensive coverage of electronic glass products from the third generation of high-
alumina to medium-alumina, soda-calcium, and from high to middle and low-end electronic glass products, forming a
more solid foundation for market competition.
Relying on the smooth advancement of new product market development and the contribution of new production lines,
Electronic Glass and Display Business has achieved rapid year-on-year growth in operating income and profit. During
the period of technical renovation of Qingyuan CSG Phase I, an impairment of 175 million yuan was accrued for the
equipment and devices of the original production lines which could not meet the needs of new projects. In 2021, Electronic
Glass and Display Business realized an operating income of 1.898 billion yuan, a year-on-year increase of 75%, and a
profit of 236 million yuan after impairment was accrued, a year-on-year increase of 46%.
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CSG Annual Report 2021
Solar energy and other businesses
In recent years, the Company has reviewed and adjusted the solar business structure on the basis of objectively analyzing
the advantages and disadvantages of its own industry, taking into account the market environment, industry development
trends and the Group's overall industrial development plan, actively eliminating outdated equipment and production
capacity, and opening up cooperation and integrating resources of all parties to promote the overall breakthrough of the
solar energy business. In order to implement the above adjustments, the Company carefully and steadily combed the
assets of Yichang CSG and Dongguan Photovoltaic, took into account of the macro background of industry development,
technological development trend and market changes, and made provision for impairment of assets eliminated by
technological transformation, backward technology and high energy consumption, so as to reduce the burden of enterprise
operation. At the same time, the Company firmly promoted the technological transformation and upgrading of Yichang
CSG's polysilicon production line which successfully resumed in the first quarter of 2022; promoted the construction of
500MW high-power, large-scale module production line of Dongguan Photovoltaic, which is being implemented as
planned and is expected to be transferred to commercial operation in the second quarter of 2022.
The Company's current solar business capacity includes 10,000 tons/year of high-purity polysilicon, 2.2 GW/year of
silicon wafer, 0.6 GW/year of battery wafer, 0.6GW/year of module and 132 MW of photovoltaic power station. During
the report period, the total operating income of the Company's solar energy and other businesses was 1.079 billion yuan.
The Company made a provision for impairment of nearly 700 million yuan in the current period. After the impairment,
the net profit of solar energy and other businesses was -672 million yuan.
II. Other management work
New stage, new starting point, new mission and new journey, 2021 was the landing year for the Company to
comprehensively promote strategic development, and a "New CSG" was being built from two aspects, the scale expansion
and the industrial upgrading. In order to ensure the rapid and healthy development of the industries of the Group, the
Company made every effort to ensure epidemic prevention and control, as well as production safety, continued to promote
differentiated operation, continuously improved the level of intelligent manufacturing, seized market opportunities and
took multiple measures, mainly as follows:
1. Under the dual cycle of "Internal Improvement and External Expansion", the Company improved the system,
consolidated the foundation, effectively supported the operation, strengthened management and improved efficiency;
strengthened mutual cooperation among teams to improve the efficiency of service, supervision and decision-making;
continued to promote basic standardized management and built five-star factories; strengthened the recognition and
rectification of potential safety and environmental protection hazards; continuously publicized and implemented the
internal audit standards and monitored the risk prevention of investment projects.
2. The Company paid full attention to the development opportunities and challenges brought about by digital
transformation, built an information construction platform, made use of a large number of data resources accumulated in
various links of production and operation such as procurement, R&D, production, sales and service, gave full play to the
data value, promoted the integration of manufacturing industry with digitization and intelligence to realize lean
management, intelligent production and differentiated services for the enterprise.
3. The iterative ability of technology, technology and product R&D is the key guarantee for sustainable and healthy
development of enterprises, and the core element of CSG for forming high value-added business line barriers, keeping
the industry leading status continuously, and realizing the core element of "we have while others don't; when they have,
ours are better, even if theirs are better, ours are much stronger". In 2021, the Company adhered to the innovation of R&D
system, paid attention to the breakthrough and industrialization of key technologies, and solidly promoted the formulation
and implementation of the Company's innovation roadmap based on the principle of "unifying independent innovation
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CSG Annual Report 2021
and open innovation, combining centralized research and collaborative development, and achieving both development
speed and development quality". After summarizing the development experience over the years and gathering the opinions
of all parties, the Company made a comprehensive layout from six levels: the organizational structure of R&D system,
intellectual property rights, product top-level design, high-level R&D platform, senior talent echelon and talent resource
supporting demand, and formulated the Group's R&D strategic plan to provide strategic direction for the Company's
technological innovation and sustainable development of product R&D.
At the same time for integrating resources, the Company actively cooperated with The Chinese University of Hong Kong,
South China University of Technology, Beijing University of Technology, Wuhan University of Technology, Yanshan
University, Pengcheng Laboratory, Shenzhen University, Guangdong New Materials Research Institute and other
domestic advantageous institutions and enterprises to establish in-depth cooperation among industry, university and
research, accelerated the transformation of scientific research achievements, and further improved the enthusiasm of
independent research and development and the technological innovation ability of the enterprise. In 2021, the number of
patent applications and authorizations of the Company continued to reach a record high, with a total of 344 patent
applications submitted (a year-on-year increase of 1.2%), including 159 invention patents (a year-on-year increase of
8.9%); 230 new patents were granted, of which new 47 invention patents were authorized (3 PCT patents) (a year-on-
year increase of 56.67%), and the contribution of research and development to the operating efficiency of the enterprise
continued to improve.
4. Environmental protection is the lifeline for the survival and development of glass companies, and it is a concentrated
expression of corporate social responsibility in high-energy-consuming industries. The Company's energy consumption
control and emission control have always been at the leading level in the industry. CSG takes the lead in the industry to
realize comprehensive utilization of energy by means of waste heat power generation and distributed photovoltaic power
generation. Through comprehensive exhaust gas treatment such as desulfurization, denitrification and dust removal, it
achieves ultra-low emission, which is far lower than the national pollutant emission permission value. Under the condition
of the same tonnage and the same kiln age, the control of energy consumption and the control of emission per unit of
production capacity have always been at the leading level in the industry. Five subsidiaries of CSG, including Xianning
CSG Energy-Saving Glass Co., Ltd., Xianning CSG Photoelectric Glass Co., Ltd., Wujiang CSG Glass Co., Ltd., Tianjin
CSG Energy-Saving Glass Co., Ltd. and Xianning CSG Glass Co., Ltd., were successively shortlisted as "Green Factory"
announced by the Ministry of Industry and Information Technology. In 2021, the Ministry of Industry and Information
Technology promoted practice of Wujiang CSG as the "Energy Efficiency Leader" to the whole flat glass industry.
5. Further improved the organizational system to ensure the implementation of strategic projects. Firstly, setting up a
mineral resources management center; the Company set up a special institution organizing a professional team to put
special efforts on acquiring relevant raw mineral resources, and consolidating strategic resource reserves and supply chain
guarantees. Secondly, setting up a photovoltaic glass marketing center; with the intensive release of the photovoltaic glass
production capacity of CSG in recent years, the Group laid out in advance, set up a professional, efficient and centralized
organization responsible for the photovoltaic glass marketing business, so as to provide a strong guarantee for the
promotion of photovoltaic glass business.
2. Revenue and cost
(1) Constitution of operation revenue
Unit: RMB
2021 2020
Increase/decrease
Ratio in operation Ratio in operation y-o-y
Amount Amount
revenue revenue
- 22 -
CSG Annual Report 2021
Total of operating
13,629,033,650 100% 10,671,253,445 100% 27.72%
income
According to industry
Glass industry 11,069,964,819 81.23% 8,709,771,261 81.62% 27.10%
Electronic glass &
1,898,164,504 13.93% 1,087,361,814 10.19% 74.57%
Display industry
Solar energy and
1,078,577,264 7.91% 988,782,926 9.27% 9.08%
other industries
Undistributed 294,865,012 2.16% 217,971,560 2.04% 35.28%
Amount of
-712,537,949 -5.23% -332,634,116 -3.12% 114.21%
unutilized
According to product
Glass products 11,069,964,819 81.23% 8,709,771,261 81.62% 27.10%
Electronic glass &
1,898,164,504 13.93% 1,087,361,814 10.19% 74.57%
Display products
Solar energy and
1,078,577,264 7.91% 988,782,926 9.27% 9.08%
other products
Undistributed 294,865,012 2.16% 217,971,560 2.04% 35.28%
Amount of
-712,537,949 -5.23% -332,634,116 -3.12% 114.21%
unutilized
According to region
Mainland China 12,355,492,022 90.66% 9,538,506,225 89.39% 29.53%
Overseas 1,273,541,628 9.34% 1,132,747,220 10.61% 12.43%
According to sales model
Direct sales 13,629,033,650 100% 10,671,253,445 100% 27.72%
(2) List of the industries, products, regions or sales model exceed 10% of the operating income or operating
profits of the Company
√Applicable □ Not applicable
Unit: RMB
Gross Increase/decrease Increase/decrease Increase/decrease
Operating
Operating cost profit of operating of operating cost of gross profit ratio
revenue
ratio revenue y-o-y y-o-y y-o-y
According to industry
Glass industry 11,069,964,819 7,068,343,647 36.15% 27.10% 18.24% 4.78%
Electronic glass
& Display 1,898,164,504 1,232,365,490 35.08% 74.57% 63.09% 4.57%
industry
Solar energy
and other 1,078,577,264 966,752,454 10.37% 9.08% 16.27% -5.54%
industries
According to product
Glass products 11,069,964,819 7,068,343,647 36.15% 27.10% 18.24% 4.78%
Electronic glass
& Display 1,898,164,504 1,232,365,490 35.08% 74.57% 63.09% 4.57%
products
Solar energy
and other 1,078,577,264 966,752,454 10.37% 9.08% 16.27% -5.54%
products
According to region
Mainland China 12,355,492,022 7,913,435,191 35.95% 29.53% 18.98% 5.68%
According to sales model
Direct sales 13,629,033,650 8,849,488,093 35.07% 27.72% 18.87% 4.83%
- 23 -
CSG Annual Report 2021
Under the circumstances that the statistical standards for the Company’s main business data adjusted in the report period,
the Company's main business data in the recent year is calculated based on adjusted statistical standards at the end of the
report period
□ Applicable √ Not applicable
(3) Whether the Company’s goods selling revenue higher than the service revenue
Whether the Company’s goods selling revenue higher than the service revenue
√Yes □ No
Increase/decrease
Industry Item Unit 2021 2020
y-o-y (%)
Sales volume 10,000-ton 295 299 -1.34%
Flat glass Output 10,000-ton 299 296 1.01%
Inventory 10,000-ton 11 6 83.33%
Sales volume 10,000-M2 3,950 3,441 14.79%
Architectural glass Output 10,000-M2 3,946 3,445 14.54%
Inventory 10,000-M2 114 118 -3.39%
Sales volume ton 273,195 57,651 373.88%
Electronic glass Output ton 271,871 49,405 450.29%
Inventory ton 18,166 9,232 96.77%
Sales volume 10,000-piece 24,712 15,497 59.46%
Silicon wafer Output 10,000-piece 24,316 15,353 58.38%
Inventory 10,000-piece 424 386 9.84%
Sales volume MW 422 457 -7.66%
Solar cell Output MW 457 429 6.53%
Inventory MW 15 6 150.00%
Reasons for y-o-y relevant data with over 30% changes
√Applicable □ Not applicable
1. Flat glass: The increase in inventory was mainly due to changes in the pace of production and sales.
2. Electronic glass: The increase in output, sales volume and inventory was mainly due to the increase in production
capacity.
3. Silicon wafer: The increase in output and sales volume was mainly due to the increase in business volume based on
changes in market demand.
4. Solar cell: The increase in inventory was mainly due to changes in the pace of production and sales.
(4)Fulfillment of significant sales contracts, procurement contracts signed by the company up to the report
period
√Applicable □ Not applicable
Fulfillment of significant sales contract ssigned by the company up to the report period
√Applicable □ Not applicable
Unit: RMB 0,000
Description of
Amount
Total Total Amount to Normally the contract
Subject performed
Name of the other party contract amount be performe not being
matter during the
amount fulfilled performed d or not performed
report period
normally
- 24 -
CSG Annual Report 2021
LONGi Solar Technology
Ltd., Zhejiang LONGi Solar
Technology Ltd., Taizhou
LONGi Solar Technology
Ltd., Yinchuan LONGi Solar
Technology Ltd., Chuzhou
LONGi Solar Technology
Ltd., Datong LONGi Solar
RMB 6,500
Photovoltaic Technology Ltd., LONGi
million (tax 45,089 29,906 604,911 Yes Not applicable
glass (H.K.) Trading Limited,
included)
LONGi (KUCHING) SDN.
BHD., Xianyang LONGi
Solar Technology Ltd.,
Jiangsu LONGi Solar
Technology Ltd., Jiaxing
LONGi Solar Technology
Ltd.,Xi'an LONGi Green
Building Technology Ltd.
Fulfillment of significant sales contracts, procurement contracts signed by the company up to the report period
□Applicable √ Not applicable
(5) Constitution of operation cost
Industry and product classification
Unit: RMB
2021 2020
Increase/decreas
Industry Item Ratio in Ratio in
Amount Amount e y-o-y
operating costs operating costs
Materials,
Glass industry Labor wages, 7,068,343,647 79.87% 5,977,946,913 80.30% 18.24%
Costs
Electronic glass Materials,
& Display Labor wages, 1,232,365,490 13.93% 755,633,963 10.15% 63.09%
industry Costs
Solar energy Materials,
and other Labor wages, 966,752,454 10.92% 831,458,581 11.17% 16.27%
industries Costs
Materials,
undistributed Labor wages, 294,564,450 3.33% 212,060,390 2.85% 38.91%
Costs
Materials,
Inter-segment
Labor wages, -712,537,949 -8.05% -332,634,116 -4.47% 114.21%
elimination
Costs
Unit: RMB
2021 2020
Increase/decreas
Industry Item Ratio in Ratio in
Amount Amount e y-o-y
operating costs operating costs
Materials,
Glass products Labor wages, 7,068,343,647 79.87% 5,977,946,913 80.30% 18.24%
Costs
Electronic glass Materials,
& Display Labor wages, 1,232,365,490 13.93% 755,633,963 10.15% 63.09%
industry Costs
Solar energy Materials,
and other Labor wages, 966,752,454 10.92% 831,458,581 11.17% 16.27%
industries Costs
- 25 -
CSG Annual Report 2021
Materials,
undistributed Labor wages, 294,564,450 3.33% 212,060,390 2.85% 38.91%
Costs
Materials,
Inter-segment
Labor wages, -712,537,949 -8.05% -332,634,116 -4.47% 114.21%
elimination
Costs
Note: The main components of operating costs include materials, labor, depreciation, etc. In order to avoid the disclosure
of business secrets and damage the interests of the listed company and investors, the operating costs are only separated
and disclosed according to the business sector and product classification of the Company.
(6) Whether the consolidated scope changed during the report period
√ Yes □No
On 19 April 2021, the Group set up a subsidiary, Xi'an CSG Energy Saving Glass Technology Co., Ltd. (referred to as
"Xi'an Energy Saving Company").As of 31 December 2021, the Group had invested RMB 1,000,000.The Group owns
100% of its equity.
On 25 June 2021, the Group set up a subsidiary, Anhui CSG Silicon Valley Mingdu Mining Development Co., Ltd.
(referred to as "Anhui Silicon Valley Mingdu Mining Company").As of 31 December 2021, the Group had invested
RMB 3,000,000. The Group owns 60% of its equity.
On 9 October 2021, the Group set up a subsidiary, Guangxi CSG New Energy Materials Technology Co., Ltd. (referred
to as "Guangxi New Energy Materials Company").As of 31 December 2021, the Group had invested RMB 31,000,000.
The Group owns 100% of its equity.
On 4 November 2021, the Group set up a subsidiary, Qinghai CSG Sunrise New Energy Technology Co., Ltd. (referred
to as "Qinghai CSG New Energy").As of 31 December 2021, the Group had not invested yet. The Group owns 100% of
its equity.
On 8 December 2021, the Group set up a subsidiary, Hefei CSG Energy Saving Material Intelligent Manufacturing Co.,
Ltd. (referred to as "Hefei Energy Saving Company").As of 31 December 2021, the Group had not invested yet. The
Group owns 100% of its equity.
On 9 December 2021, the Group set up a subsidiary, Shenzhen CSG New Energy Industry Development Co., Ltd.
(referred to as "Shenzhen CSG New Energy").As of 31 December 2021, the Group had not invested yet. The Group owns
100% of its equity.
On 13 December 2021, the Group set up a subsidiary, Zhaoqing CSG New Energy Technology Co., Ltd. (referred to as
"Zhaoqing CSG New Energy"). As of 31 December 2021, the Group had not invested yet. The Group owns 100% of its
equity.
(7) Major changes or adjustment in business, product or service of the Company in the report period
□ Applicable √ Not applicable
- 26 -
CSG Annual Report 2021
(8) Major customers and major suppliers
Major customers of the Company
Total sales to the top five customers (RMB) 1,190,228,183
Proportion in total annual sales volume for top five customers 8.73%
Proportion of related party sales in total annual sales volume for top five customers 0.00%
Information of the top five customers of the Company
Proportion in total annual
Serial Name of customer Sales volume (RMB)
sales
1 Customer A 343,603,866 2.52%
2 Customer B 271,432,779 1.99%
3 Customer C 250,345,033 1.84%
4 Customer D 186,722,964 1.37%
5 Customer E 138,123,541 1.01%
Total 1,190,228,183 8.73%
Other statement of main customers
□ Applicable √ Not applicable
Major suppliers of the Company
Total purchase amount from the top five suppliers (RMB) 1,922,448,668
Proportion in total annual purchase amount from the top five suppliers 19.17%
Proportion of related party sales in total purchase amount from the top five suppliers 0.00%
Information of the top five suppliers of the Company
Proportion in total annual
Serial Name of supplier Purchase amount (RMB)
purchase
1 Supplier A 529,470,817 5.28%
2 Supplier B 459,475,449 4.58%
3 Supplier C 408,976,617 4.08%
4 Supplier D 272,345,182 2.72%
5 Supplier E 252,180,603 2.51%
Total 1,922,448,668 19.17%
Other statement of major suppliers
□ Applicable √ Not applicable
3. Expenses
Unit: RMB
2021 2020 Increase/decrease y-o-y Note of major changes
Sales expense 270,695,433 233,918,938 15.72%
Management expense 752,605,507 666,976,561 12.84%
Mainly due to the reduction
Financial expense 151,182,191 224,011,920 -32.51%
of interest costs.
R&D expenses 511,738,848 404,842,498 26.40%
4. R&D expenses
√Applicable □ Not applicable
Expected impact on the
Name of main
Purpose Progress Expected target future development of the
R&D project
company
- 27 -
CSG Annual Report 2021
The developed
Through independent
Upgrading KK6-P product has
research and development,
and higher strength and
On the basis of KK6 carry out product
industrializati The formulation design, drop height of the
products, further optimize iteration, continuously
on of high- performance testing and whole machine,
product performance and improve the performance
alumina industrialization meeting the
processing performance to of the Company's
second promotion of KK6-P requirements of 3D
provide better quality CSG electronic glass products,
generation have been completed bending, AG
electronic glass in the market respond to market demand
electronic etching and other
and improve product
glass (KK6-P) processing
competitiveness.
technologies.
Relevant exploration
In response to the national
has been carried out on
strategic guidelines for dual
the application of the Through the development
carbon goals, strive to Provide the market
combination of BIPV of BIPV project, improve
achieve the double carbon with green
BIPV photovoltaic curtain the combination of the
goal of construction as soon photovoltaic power
architectural wall and traditional Company's two industrial
as possible with the supply generation curtain
glass products energy-saving glass, chains of energy-saving
of high-performance wall glass products
and research through the glass and photovoltaic
building energy-saving that meet
processing composite application products, actively promote
materials. Taking BIPV architectural
technology of photovoltaic products the development of green
building photovoltaic curtain aesthetics and
research and and energy-saving films building materials, and
wall as a breakthrough, energy-saving
development to further reduce the form BIPV building glass
realize the transformation of design
comprehensive energy products with CSG
buildings from passive specifications
consumption of characteristics
energy saving to active
buildings in a variety of
energy generation.
technical ways.
R&D staff of the Company
2021 2020 Ratio of change
Number of R&D staff (person) 173 170 1.76%
The proportion of the number of R&D staff 1.45% 1.61% -0.16%
Educational structure of R&D staff —— —— ——
Below undergraduate 14 12 16.67%
Undergraduate 115 117 -1.71%
Master 39 38 2.63%
Doctor 5 3 66.67%
Age composition of R&D staff —— —— ——
Under 30years old 30 13 130.77%
30~40years old 104 104 0.00%
Over 40years old 39 53 -26.42%
R&D investment of the Company
2021 2020 Ratio of change
Amount of R&D investment (RMB) 551,196,983 434,641,497 26.82%
Ratio of the R&D investment to the operating income 4.04% 4.07% -0.03%
Amount of the capitalized R&D investment (RMB) 39,458,135 29,798,999 32.41%
Ratio of the capitalized R&D investment to the R&D investment 7.16% 6.86% 0.30%
Reasons and effects of major changes in the composition of the company's R&D staff
□ Applicable √ Not applicable
Reason of remarkable changes over the previous year of the ratio of the total R&D investment amount to the operating
income
□ Applicable √ Not applicable
Reason of substantial change of the ratio of the R&D investment capitalization and its reasonable explanation
□ Applicable √ Not applicable
- 28 -
CSG Annual Report 2021
5. Cash flow
Unit: RMB
Item 2021 2020 Increase/decrease y-o-y
Subtotal of cash inflow from operating activities(1) 15,442,136,045 11,975,699,992 28.95%
Subtotal of cash outflow from operating
11,540,051,660 9,245,080,356 24.82%
activities(2)
Net cash flow from operating activities 3,902,084,385 2,730,619,636 42.90%
Subtotal of cash inflow from investment
4,526,023,816 439,718,884 929.30%
activities(3)
Subtotal of cash outflow from investment
7,431,099,910 1,229,511,710 504.39%
activities(4)
Net cash flow from investment activity -2,905,076,094 -789,792,826
Subtotal of cash inflow from financing activity(5) 1,839,354,868 4,422,844,911 -58.41%
Subtotal of cash outflow from financing activity(6) 2,202,107,070 6,067,431,947 -63.71%
Net cash flow from financing activity -362,752,202 -1,644,587,036
Net increased amount of cash and cash equivalent 632,449,376 292,193,166 116.45%
Relevant data year-on-year major changes in the main influencing factors
√Applicable □ Not applicable
(1)Cash inflow from operating activities was mainly due to the increase in cash received from sales of goods and provision
of labor services.
(2)Cash outflow from operating activities was mainly due to the increase in cash paid for purchasing goods and accepting
labor services.
(3)Cash inflow from investing activities was mainly due to cash recovery from the redemption of structured deposits.
(4)Cash outflow from investing activities was mainly due to the increase in cash paid for purchasing structured deposits
and purchasing and constructing fixed assets, intangible assets and other long-term assets.
(5)The cash inflow from financing activities was mainly due to the increase in cash received from the issuance of bonds
in the previous year.
(6) The cash outflow from financing activities was mainly due to the decrease in cash paid for debt repayment this year.
Notes to the reason of the significant differences between the net cash flow from the operating activities and the net profits
of the year during the report period
Applicable √ Not applicable
V. Non-main business analysis
√Applicable □ Not applicable
Unit: RMB
Ratio in Sustainable
Amount Note for the reason
total profit or not
Investment income 16,847,647 0.88% Income from structured deposits, etc. No
Asset impairment 981,665,546 51.20% Mainly due to impairment loss of long-term assets No
Mainly due to claim income and the payments unable to
Non-operating income 12,604,534 0.66% No
pay, etc.
Non-operating
26,130,744 1.36% Mainly for the refund of financial subsidies and others No
expenses
- 29 -
CSG Annual Report 2021
VI. Asset and Liability Analysis
1. Significant changes in asset composition
Unit: RMB
The end of 2021 The beginning of 2021
Proportion Proportion Change of
Notes of major changes
Amount in total Amount in total proportion
assets assets
Monetary Mainly due to the increase in cash
2,765,925,906 13.87% 2,125,788,903 11.89% 1.98%
funds received from the sale of goods
Tradable Mainly due to the purchase of
999,600,000 5.01% 5.01%
financial assets structural deposits
Mainly due to the change of
collection method of some
Notes
19,220,984 0.10% 207,966,892 1.16% -1.06% subsidiaries and some converted
receivable
to accounts receivable due to non-
performance by the drawer
Accounts
730,525,687 3.66% 681,467,133 3.81% -0.15%
receivable
Mainly due to the increase in raw
Inventory 1,093,805,525 5.49% 815,156,318 4.56% 0.93% material stocking and finished
product inventory
Investment
383,084,500 1.92% 383,084,500 2.14% -0.22%
real estate
Fix assets 8,566,515,026 42.96% 9,145,644,569 51.14% -8.18%
Mainly due to the increase in
Construction
2,461,088,650 12.34% 1,893,380,611 10.59% 1.75% project investment of some
in process
subsidiaries
Mainly due to the reclassification
of long-term deferred expenses to
Right-of-use
9,911,935 0.05% 11,538,741 0.06% -0.01% right-of-use assets for the
asset
implementation of the new leased
standards
Development Mainly due to the increase in
72,019,362 0.36% 49,153,407 0.27% 0.09%
expenditure R&D investment
Mainly due to the provision for
Goodwill 130,147,859 0.65% 233,375,693 1.31% -0.66%
impairment of goodwill
Long-term Mainly due to the increase in
deferred 3,013,721 0.02% 741,179 0% 0.02% long-term deferred expenses of
expenses some subsidiaries
Mainly due to the increase in
Deferred tax
255,185,923 1.28% 194,979,414 1.09% 0.19% deferred income tax assets from
assets
the provision for asset impairment
Mainly due to the increase in
Other non-
584,162,622 2.93% 193,359,445 1.08% 1.85% prepayment for engineering
current assets
equipment by some subsidiaries
Short-term Mainly due to the repayment of
180,770,000 0.91% 352,895,571 1.97% -1.06%
loans part of the loan
Mainly due to the increase in
Notes payable 400,662,713 2.01% 144,851,192 0.81% 1.20% newly-issued bills of some
subsidiaries
Contract
335,188,642 1.68% 296,776,624 1.66% 0.02%
liabilities
Non-current
liabilities due Mainly due to repayment of
503,820,548 2.53% 928,352,462 5.19% -2.66%
within one medium-term notes
year
- 30 -
CSG Annual Report 2021
Long-term Mainly due to the increase in
1,469,059,824 7.37% 853,253,983 4.77% 2.60%
loans loans for the projects
Mainly due to the reclassification
Lease
220,138 1,077,230 0.01% -0.01% of lease contracts to non-current
liabilities
liabilities due within one year
Long-term Mainly due to the increase in
168,258,062 0.84% 0.84%
payables financial lease payables
The proportion of overseas assets was relatively high
□ Applicable √ Not applicable
2. Assets and liabilities measured at fair value
√Applicable □ Not applicable
Unit: RMB
Profit and
Cumulative
loss from Impairment
changes in Purchase
Opening changes in accrued in Amount sold in Other Closing
Item fair value amount for this
balance fair value in the current this period changes balance
included in period
the current period
equity
period
1. Trading financial
assets (excluding
5,423,600,000 4,424,000,000 999,600,000
derivative financial
assets)
2. Investment real
383,084,500 383,084,500
estate
3. Receivables
382,527,782 -85,481,659 297,046,123
financing
Other changes: nil
During the report period, whether the company’s main asset measurement attributes changed significantly or not
□Yes √No
3. Limited asset rights as of the end of the report period
Unit: RMB
Item Limited amount Limited reason
Monetary funds 9,448,334 Restricted deposit flow etc.
Fix assets 165,095,479 Limited finance lease
Total 174,543,813
VII. Investment
1. Overall situation
√Applicable □ Not applicable
Investment in the same period of the previous year
Investment in the report period (RMB) Changes
( RMB)
7,431,099,910 1,229,511,710 504.39%
2. The major equity investment obtained in the report period
□ Applicable √ Not applicable
- 31 -
CSG Annual Report 2021
3. The major ongoing non-equity investment in the report period
√Applicable □ Not applicable
Unit: RMB 0,000
Reasons
Accumulativ
Amoun Accumulativ for not
Fixed e amount Index of
t e revenue achieving Date of
Way of asset actually disclosure
Industry investe Source of Progress of project (ongoing Expecte achieved by the planned disclosure
Project investme invest invested by (if
involved d in the funds projects) d return the end of progress (if
nt ment the end of applicable
report the report and the applicable)
or not the report )
period period expected
period
return
CSG plans to invest in the
construction of energy-saving
glass production project in Part of the
Zhaoqing from 2019 to 2021. project had
Zhaoqing CSG Own funds
After the production, the been
high-grade and loans
company will produce 2.5 completed, Notice
energy Manufacturi from December
Self-built Yes 26,561 31,335 million square meters of 6,988 and the number:
conservation ng industry financial 13, 2019
energy-saving insulating glass benefits 2019-077
glass production institutions
and 3.5 million square meters had been
line project
of coated energy-saving reflected in
products. Part of the project is the profits.
in production and part is under
construction.
Own funds CSG plans to invest in the No profit
Zhaoqing CSG
and loans construction of high-end as the
high-grade Notice
Manufacturi from automotive glass production project is December
automotive glass Self-built Yes 2,454 2,794 financial 5,800 number:
ng industry line in Zhaoqing from 2019 to in the 13, 2019
production line 2019-077
institutions 2021. The project is under constructio
project
construction. n period.
CSG plans to build a new No profit
Own funds
production base of low iron as the
Anhui Fengyang and loans Notice
Manufacturi (ultra-white) quartz sand with project is March 6,
quartz sand Self-built Yes 5,488 5,666 from 8,238 number:
ng industry an annual output of 600,000 in the 2020
project financial 2020-010
tons in Fengyang, Anhui constructio
institutions
Province, and obtain the raw n period.
- 32 -
CSG Annual Report 2021
ore right of quartz sand. The
project is under construction.
Anhui Fengyang
CSG plans to invest in Anhui
Lightweight &
Province for the project of No profit
high- Own funds
lightweight &high- as the
permeability and loans Notice
Manufacturi permeability panel for solar project is March 6,
panel for solar Self-built Yes 75,013 76,517 from 43,566 number:
ng industry energy equipment in the 2020
energy financial 2020-010
manufacturing base in 2020- constructio
equipment institutions
2022.The project is under n period.
manufacturing
construction.
base project
CSG intends to invest in a new
coating production line in
Tianjin CSG, and at the same
time upgrade and transform
the existing coating line B and No profit
Tianjin Energy- Own funds
line C. The project plans to as the
saving Coating and loans Notice
Manufacturi increase the annual production project is April 30,
Production Line Self-built Yes 9,523 9,523 from 1,640 number:
ng industry capacity of 2.76 million square in the 2020
Purchase and financial 2020-023
meters through the purchase of constructio
Upgrade Project institutions
coating lines and the n period.
upgrading and transformation
of existing production lines.
The project is under
construction.
CSG plans to build a full-
process flexible automated
production line covering
Wujiang cutting, edging, tempering,
Architectural insulating and other processes
No profit
Glass newly Own funds in Wujiang CSG East China
as the
building and loans Architectural Glass Co., Ltd., Notice
Manufacturi project is June 24,
intelligent Self-built Yes 5,101 5,177 from using the reserved industrial 5,049 number:
ng industry in the 2020
manufacturing financial land in the factory area. The 2020-051
constructio
plant institutions new factory building area is
n period.
construction 31,968 square meters, and the
project new intelligent manufacturing
production line has an annual
output of 1.2 million square
meters of Low-E energy-
- 33 -
CSG Annual Report 2021
saving insulating glass. The
project is under construction.
CSG plans to build a
lightweight and high-
efficiency double-glass
processing production line in The project
Dongguan solar
Dongguan Solar. After the was just
light and high-
Own funds production line is completed, it put into
efficiency
and loans is expected to add 1 million production, Notice
double-glass Manufacturi August 24,
Self-built Yes 5,165 5,689 from square meters of double-glass 2,341 and the number:
processing ng industry 2020
financial production capacity per profit 2020-061
production line
institutions month, with an annual would be
construction
production capacity of 12 illustrated
project
million square meters. The in 2022.
project was transferred into
commercial operation in Nov.
2021.
CSG plans to build two
lightweight and high-
efficiency double-glass
processing production lines in
Wujiang Float. After the
production line is completed, it
Wujiang Float is expected to add 2 million
Lightweight and square meters of double-glass No profit
Own funds
High-efficiency production capacity per as the
and loans Notice
double-glass Manufacturi month, with an annual project is August 24,
Self-built Yes 3,683 4,040 from 4,785 number:
processing ng industry production capacity of 24 in the 2020
financial 2020-061
production line million square meters. After constructio
institutions
construction the project is completed, it will n period.
project give full play to Wujiang
Float’s technical advantages of
double-glass, enhance market
competitiveness, and expand
the scale of the Company's
benefits. The project is under
construction.
Own funds CSG Group plans to invest in No profit Notice
Xi'an CSG Manufacturi November
Self-built Yes 34 34 and loans Xi'an, Shanxi Province for 4,222 as the number:
Energy-saving ng industry 7, 2020
from building a high-end energy- project is 2020-070
- 34 -
CSG Annual Report 2021
glass production financial saving glass production line in the
line project institutions with an annual output of 2.1 preparation
million square meters of period.
insulating energy-saving
glass, and a 3.5 million square
meter energy-saving glass
production line with coated
energy-saving products. The
project is under construction.
CSG plans to build an ultra-
Hebei Panel thin electronic glass No profit
Own funds
Glass ultra-thin production line with a daily as the
and loans Notice
electronic glass Manufacturi melting capacity of 110 tons project is March 27,
Self-built Yes 1,484 2,441 from 4,671 number:2
Line II ng industry and a complementary R&D in the 2021
financial 021-008
construction center in Hebei Panel Glass. constructio
institutions
project The project is under n period.
construction.
Xianning CSG CSG plans to build a
No profit
1200T/D Own funds photovoltaic kiln with a daily
as the
Photovoltaic and loans melting capacity of 1,200 tons Notice
Manufacturi project is March 27,
Packaging Self-built Yes 6,645 6,645 from and complementary deep 12,835 number:2
ng industry in the 2021
Material financial processing lines in Xianning 021-008
constructio
Production Line institutions CSG. The project is under
n period.
Project construction.
CSG plans to carry out cold
repair and technical
transformation of the 650T/D
line ultra-white solar kiln in
Dongguan CSG Dongguan Solar Phase III, and
Solar Double- start the technical No profit
Own funds
Glass transformation and upgrade as the
and loans Notice
Calendering Manufacturi project of double-glass project is June 8,
Self-built Yes 239 239 from 6,067 number:
Line Technical ng industry calendering line. After the in the 2021
financial 2021-025
Transformation project is completed, it will constructio
institutions
and Upgrade ensure that the product quality, n period.
Project output efficiency, energy
consumption level and cost
advantage are at the leading
domestic level. The project is
under construction.
- 35 -
CSG Annual Report 2021
CSG Group plans to invest in
the construction of CSG East
China Headquarters Building
in Wujiang District, Suzhou
City, Jiangsu Province, as the No profit
Own funds
R&D, marketing, exhibition, as the
CSG East China and loans Notice
Manufacturi office and cooperation center project is August 27,
headquarters Self-built Yes from number:
ng industry of upstream and downstream in the 2021
building financial 2021-039
enterprises in the industry constructio
institutions
chain in East China, so as to n period.
meet the needs of CSG's
expanding business scale and
increasing personnel in East
China in the future.
CSG plans to invest in the
construction of CSG Guangxi
Beihai Photovoltaic Green
Energy Industrial Park project
in Beihai Tieshangang
Industrial Park, Longgang
New District, Guangxi Zhuang
Autonomous Region. Phase I
of the project includes two
1,200t/d One-kiln & Five-line
CSG Guangxi No profit
Own funds photovoltaic rolled glass
Beihai as the
and loans production lines and Notice
Photovoltaic Manufacturi project is September
Self-built Yes 38 38 from complementary photovoltaic 55,764 number:
Green Energy ng industry in the 10, 2021
financial glass processing production 2021-041
Industrial Park constructio
institutions line, as well as complementary
Project (Phase I) n period.
R&D center, 2.5GW
photovoltaic module
production line, one 700 t/d
one-kiln two-line production
line for electronic glass and
photoelectric glass,
complementary quartz sand
mine and purification
processing line. The project is
under construction.
- 36 -
CSG Annual Report 2021
CSG plans to invest in the
construction of a CSG energy-
saving glass intelligent
manufacturing industrial base
in Hefei City, Anhui Province,
using a new generation of
Hefei CSG No profit
Own funds intelligent manufacturing
Energy-saving as the
and loans technologies and processes to Notice
Glass Intelligent Manufacturi project is October
Self-built Yes from build an energy-saving glass 4,666 number:
Manufacturing ng industry in the 15, 2021
financial processing center, and to 2021-043
Industry Base constructio
institutions further expand the market
Project n period.
layout of CSG in central
China, thereby to better serve
the market and customers, and
serve the national "Carbon
Peaking and Carbon Neutrality
goals".
CSG plans to use the surplus
land in the park to implement
the production line
reconstruction and expansion
project in Xianning CSG
Energy-Saving Glass Co.,
Ltd., to carry out technical
renovation and upgrade of the
Xianning CSG
existing coating equipment,
Energy-saving No profit
Own funds expand the workshop and
Glass Co., Ltd. as the
and loans supplement the Notice
Production Line Manufacturi project is December
Self-built Yes 15 15 from complementary processing 2,713 number:
Reconstruction ng industry in the 3, 2021
financial equipment, and simultaneously 2021-051
and Expansion constructio
institutions implement the full intelligent
Construction n period.
connection. After the
Project
completion of the project, it is
expected that the company's
annual production capacity of
insulating glass will increase
by 1.2 million square meters,
and the annual production
capacity of coated glass will
increase by 2.42 million
- 37 -
CSG Annual Report 2021
square meters. The project is
under construction.
CSG plans to carry out
technical transformation of
phase I production line of
Qingyuan CSG Energy-saving
New Material Co., Ltd., and
achieves furnace and hardware
upgrades through
technological innovation to
Qingyuan CSG meet the technological
Energy-saving requirements of the Group's No profit
Own funds
New Materials newly developed third- as the
and loans Notice
Co., Ltd. Phase I Manufacturi generation high-alumina project is December
Self-built Yes 842 1,562 from 6,021 number:
Upgrading and ng industry products (KK8). This technical in the 25, 2021
financial 2021-053
Technical upgrade will further promote constructio
institutions
Transformation the technological innovation of n period.
Project CSG in the field of electronic
glass, open up the
technological generation gap
with domestic business
partners, seize the market
share of imported products,
and speed up the process of
import substitution. The
project is under construction.
Total -- -- -- 142,285 151,715 -- -- 175,366 -- -- --
- 38 -
CSG Annual Report 2021
4. Financial assets investment
(1) Securities investment
□ Applicable √ Not applicable
There was no securities investment during the report period.
(2) Derivative investment
□ Applicable √ Not applicable
There was no derivative investment during the report period.
5. Use of raised fund
□ Applicable √ Not applicable
There was no use of raised fund during the report period.
VIII. Sales of major assets and equity
1. Sales of major assets
□ Applicable √ Not applicable
2. Sales of major equity
□ Applicable √ Not applicable
IX. Analysis of main holding companies and joint -stock companies
√Applicable □ Not applicable
Particular about main subsidiaries and joint -stock companies which have influence on the Company's net profit by over
10%
Unit: RMB
Name of Registered
Type Main business Total assets Net Assets Operating revenue Operating profit Net profit
company capital
Development,
manufacture
Chengdu CSG
Subsidiary and sales of 260 million 1,291,889,709 1,061,849,777 1,745,037,970 765,486,507 654,328,348
Glass Co., Ltd.
various special
glass
Manufacture
USD
Hebei CSG and sales of
Subsidiary 48.06millio 1,087,977,824 851,769,374 1,344,835,356 490,793,371 425,191,657
Glass Co., Ltd. various special
n
glass
Development
and
Xianning CSG manufacture
Subsidiary 235 million 1,340,334,129 941,500,971 1,158,725,622 428,989,160 370,069,838
Glass Co., Ltd. and sales of
various special
glass
Wujiang CSG Manufacture 565.04
Subsidiary 1,772,739,593 1,515,940,005 2,133,590,715 614,194,495 531,749,201
Glass Co., Ltd. and sales of million
- 39 -
CSG Annual Report 2021
various special
glass
Manufacture
Dongguan
and sales of
CSG Solar Subsidiary 480 million 1,475,320,905 1,197,618,751 1,477,806,414 310,810,639 270,624,711
Solar-Energy
Glass Co., Ltd.
Glass products
Production and
Yichang CSG sales of high-
1,467.98mi
Polysilicon Subsidiary purity silicon 1,747,485,123 -237,507,777 528,222,453 -295,211,587 -296,809,561
llion
Co., Ltd. material
products
Production and
Dongguan sales of high-
CSG PV-tech Subsidiary tech green 516 million 710,178,359 -61,429,727 405,025,214 -444,256,417 -431,273,692
Co., Ltd. battery
products
Particulars about subsidiaries obtained or disposed in report period
□ Applicable √ Not applicable
Description of the main holding and shareholding companies:
In 2021, affected by the rising price of float glass, the performance of five subsidiaries including Chengdu CSG Glass
Co., Ltd., Hebei CSG Glass Co., Ltd., Xianning CSG Glass Co., Ltd., Wujiang CSG Glass Co., Ltd. and Dongguan CSG
Solar Glass Co., Ltd. increased significantly year-on-year. At the same time, based on the principle of prudence, the Group
made provision for impairment of some assets with outdated processes and high energy consumption in Yichang CSG
Polysilicon Co., Ltd. and Dongguan CSG PV-tech Co., Ltd.
X. Structured main bodies controlled by the Company
□ Applicable √ Not applicable
XI. Outlook of the Company’s future development
1. Tendency of development of the industries the Company engages
Please refer to the relevant content of "I. Particulars about the industry the Company engages in during the report period".
2. The Company's development strategy
2022 is the 30th anniversary of CSG's listing. The Company will follow the development path of "Polishing three types
of glass (float glass, photovoltaic glass, electronic glass) and forging a brand (architectural glass)", firmly expand and
strengthen the main glass business, persist in high-quality development, adhere to the purpose of "Business First",
continue to enhance the Company's core competitiveness, occupy the commanding heights of the industry, strengthen the
advantage of raw material resources, improve technology and R&D strength, expand market share and market influence,
integrate industrial resources, comprehensively improve the credibility and influence of the CSG brand, plan the layout
of the CSG industry from a global and macro perspective, accelerate the development of new industries and enhance the
Company's ability to resist cyclical risks, and build the CSG into a transnational enterprise group with international
influence related to the upstream and downstream of the glass industry.
3. Business plan of the Company in 2022
① Continue to follow up local epidemic prevention policies, build a new management model under the normalization of
the epidemic, work together to fight the epidemic and operate safely; ensure that the projects under construction are put
into operation smoothly on schedule as planned, and form production capacity and benefit contribution as soon as possible;
②Accelerate the R&D and iteration related to new products and new businesses, and build an Industry-University-
Research platform;
- 40 -
CSG Annual Report 2021
③Strengthen the ability of group operation and management, realize co-ordinated management, promote supply chain
management, lean management and other measures, and focus on tapping potential and increasing efficiency activities to
ensure the completion of the Company's operation and construction objectives of 2022;
④Strengthen talent management, establish remuneration incentive system related to the performance, improve company
incentive mechanism, strengthen employee training, Select and train reserve cadres and introduce high-quality talents;
⑤ Rationally plan asset-liability ratio level and ensure financial risk under control;
⑥Improve information level of the Company, and create the world first-class information management platform to
promote the development of internal production and processing technology from tradition to automation, information and
intelligent manufacturing.
4. Fund demand, use plan and fund source
In 2022, the Company's expected capital expenditure is about RMB 5.228 billion, which is mainly used for projects such
as light-weight and high-transparency panel projects for solar energy equipment, construction of electronic glass
production lines, technology upgrades in the solar energy industry, engineering glass workshop automation and capacity
expansion projects. The main sources of funds are self-owned funds and loans from financial institutions.
5. Risk factors and countermeasures
In 2022, in the face of “New Normal” of domestic economic development and the task of building a “Century CSG”, the
Company will face the following risks and challenges:
① The epidemic situation at home and abroad and the international political environment are still facing many
uncertainties.
Affected by the repeated outbreaks of the epidemic and the complicated international political environment, the domestic
economy still faces many challenges and uncertainties. In 2022, the Company will continue to normalize epidemic
prevention and control, strengthen its attention to the market, timely adjust the strategy according to market changes, and
strive to achieve the annual core work objectives through steady operation.
②The glass industry is facing fierce competition among similar products and pressure from rising raw materials and fuels;
the electronic glass and display industry faces the risk of accelerating material technology upgrades due to the continuous
rapid iterative upgrade of technology requirements in downstream application scenarios; the solar energy industry faces
the challenge of an imbalance in the supply chain which leads to rapid price increases in some links. To cope with
aforesaid risks, the Company will take the following measures:
A. In the flat glass industry, the Company will enhance the competitiveness of the industry through continuous lean
management, differentiated management and product structure optimization, and expand the scale of the industry by
investing in new production lines and enhance the competitiveness of the industry;
B. In the architectural glass industry, the Company will strengthen the development of high-end market and overseas
market, actively develop traditional residence market, and at the same time, maintain the industrial advantageous position
of the Company through market-oriented extension of industrial chain;
C. In the solar energy industry, the Company will strengthen the integration of resources across the industry chain,
increase R&D investment, strengthen operation management, and maintain corporate competitiveness in market
segmentation; pay close attention to market changes, vigorously carry out cost reduction and efficiency enhancement
activities, implement energy-saving and consumption-reducing measures, and timely upgrade and replace the equipment,
to improve production efficiency and ensure the Company's benefits;
D. In electronic glass and display industry, the Company will strengthen research and development of new technology as
well as new product, maintain its technical leading advantage in the industry, and rapidly develop terminal market and
improve industrial profitability. In the display industry, the Company will strengthen the research and development of
new technologies and products, maintain the leading edge of industry technology, further strengthen the development of
terminal market and improve the profitability of the industry.
- 41 -
CSG Annual Report 2021
③ The market price of solar glass and PV industry has fluctuated greatly. At the same time, the prices of upstream raw
materials have fluctuated, and the current rising labor costs have brought risks to the Company's operations.
To cope with risk, the Company will take the following measures:
A. Vigorously exploit potential and increase efficiency, and effectively implement energy saving and consumption
reduction to control production cost;
B. Focus on the market change, lock the price of bulk commodity at proper time, and take advantage of bulk purchases
to reduce purchase costs;
C. Improve automatic production level, raise labor productivity;
D. Strengthen the development of new application market and disperse the risk of single market.
④Risk of fluctuation of foreign exchange rate: At present, nearly 9.44% of the sales revenue of the Company is from
overseas, in the future, the Company will further develop overseas business, and therefore, the fluctuation of exchange
rate will bring certain risk to the operation of the Company. To cope with such risk, the Company will settle exchange in
time and use safe and effective risk evading instrument and product to relatively lock exchange rate and reduce the risk
caused by fluctuation of exchange rate.
XII. Reception of research, communication and interview
1. Particulars about research, communication and interview in the report period
√Applicable □ Not applicable
The main content
of the discussion Index of the basic
Reception Reception Reception
Reception time Reception object and the situation of the
location method object type
information survey
provided
The Company
Shenwan communicated
Hongyuan with investors on For details, please
Research the Company's refer to the Record
Institute, National periodical of Investor
Social Security reports, the Relations
CSG Telephone
April 15, 2021 institution Fund, Bank of Company's Activities disclosed
Headquarters communication
Communications performance and on Juchao website
Wealth the operation and (www.cninfo.com.
Management, development of cn) on April 16,
Harvest Fund and businesses, etc.; 2021.
other institutions no material was
provided.
The Company
Shenwan
communicated
Hongyuan
with investors on For details, please
Research
the Company's refer to the Record
Institute,
operation in the of Investor
Changjiang
CSG Telephone first half of the Relations
July 6, 2021 institution Securities, China
Headquarters communication year, electronic Activities disclosed
Asset
glass, on Juchao website
Management,
photovoltaic (www.cninfo.com.
China Merchants
glass, etc.; no cn)on July 7, 2021.
Fund and other
material was
institutions
provided.
- 42 -
CSG Annual Report 2021
Section IV. Corporate Governance
1. Basic Situation of Corporate Governance
In strict compliance with the requirements of the relevant laws and regulation including The Company Law, Securities
Law and Rule of Governance for Listed Company, the Company has been putting efforts in improving the corporate
governance, strengthening management of information disclosure, regulating operation activities and establishing a
modern corporate system. At present, the system for corporate governance of the Company is basically sound, operation
is regulated, corporate governance is consummated, which accord with the requirements of relevant documents on
corporate governance of listed company issued by CSRC.
According to the "Company Law" and other relevant laws and regulations and the "Articles of Association", the Company
has established and improved a relatively standardized corporate governance structure, and formed a decision-making
and operation management system with the shareholders' meeting, the board of directors, the board of supervisors and the
Company's management as the main structure. The power organs, decision-making bodies, supervision bodies and
managers have clear rights and responsibilities, perform their respective duties and effectively monitor and balance, and
perform various duties stipulated in the "Company Law" and "Articles of Association" in accordance with the law.
According to the "Articles of Association" and other relevant corporate governance regulations, the Company has
formulated the "Procedure Rules for Shareholders' Meeting", "Procedure Rules for the Board of Directors", "Procedure
Rules for the Supervisory Committee", "General Manager's Work Rules" and other relevant systems, which provides an
institutional guarantee for the standardized operation of the corporate governance structure of the Company.
The Company's "Three Committees" (General Meeting of Shareholders, Board of Directors and Board of Supervisors)
operate in a standardized manner, and the procedures for convening and convening meetings comply with relevant
regulations. Directors, supervisors and senior management can perform relevant duties and obligations diligently and
conscientiously. Independent directors can play an independent role in the company's decision-making, and their relevant
suggestions to the company have been adopted by the company, which has played an active role in safeguarding the
interests of the company and minority shareholders. At the same time, the company also provides sufficient guarantee for
independent directors and supervisors to perform their duties. The Board of Directors has established four special
committees, namely, the Strategy Committee, the Audit Committee, the Nomination Committee, and the Remuneration
and Evaluation Committee, to assist the Board of Directors in performing relevant functions and provide professional
suggestions and opinions for the Board of Directors' decision-making. The Board of Directors and the Board of
Supervisors of the Company report to the General Meeting of Shareholders on the performance of their duties by directors
and supervisors, and the independent directors make a debriefing report to the General Meeting of Shareholders. The
senior management personnel have a clear division of labor, clear responsibilities and authorities, and operate in
compliance with laws and regulations. In strict accordance with the requirements of the Listing Rules of Shenzhen Stock
Exchange and other relevant laws and regulations, the company earnestly performs the obligation of information
disclosure to ensure the authenticity, accuracy, integrity and timeliness of information disclosure. The company earnestly
fulfills its information disclosure obligations in strict accordance with the requirements of the Shenzhen Stock Exchange
Listing Rules and other relevant laws and regulations to ensure the truthfulness, accuracy, completeness and timeliness
of information disclosure. Shanghai Securities News, Securities Daily, Hong Kong Commercial Daily and Juchao Website
(www.cninfo.com.cn) are designated media for the Company's information disclosure to ensure that all shareholders of
the Company have equal access to the Company's business information. The Company has established the Information
Disclosure Management System and promptly improved it in accordance with newly issued laws and regulations, clarified
the standards of insider information, and established inside information insider registration system and record
management system. In order to further strengthen the Company's internal information disclosure control, enhance the
disclosure consciousness of relevant personnel, and improve the quality of corporate information disclosure, in 2016, the
Company set up information Disclosure Committee, and formulate Rules for the implementation of the information
disclosure Committee. During the report period, the Company disclosed information with facticity, completeness,
timeliness and fairness, strictly fulfilled the responsibilities and obligations of information disclosure of listed companies
to ensure that investors are able to keep abreast of the Company's operation and development strategies. There was no
regulatory punishment caused by information disclosure in the report period. Meanwhile, the Company delivered the
Inside Information Insider Table to Shenzhen Stock Exchange when submitting periodic reports. It didn’t exist that
insiders used the inside information to trade the Company’s shares before the major sensitive information which could
affect the Company’s share price was disclosed.
The Company has seriously implemented the requirements of the relevant regulatory to cash dividends. The Company
formulated the Return plan for Shareholders of CSG Holding Co., Ltd. in the Next Three Years (2020-2022) according
- 43 -
CSG Annual Report 2021
to relevant regulations of the Notice of Further Implementation of Cash Dividends of the Listed Companies (ZJF No.:
[2012] 37) and the Regulatory Guidelines of Listed Companies No. 3-Cash Dividends of Listed Companies (ZGZJHGG
No. [2013] 43) issued by China Securities Regulatory Commission, further improved the Company’s decision-making
and supervision mechanism for distribution of profits, and protected the interests of investors.
During the report period, it did not exist that the Company provided the undisclosed information to the largest shareholder.
And it did not exist that non-operating fund of listed Company was occupied by the largest shareholder and its affiliated
enterprises.
Is there any difference between the actual condition of corporate governance and relevant regulations about corporate
governance for listed company from CSRC?
□Yes √ No
II. Independency of the Company relative to the largest shareholder in aspect of businesses,
personnel, assets, organization and finance
The Company has been absolutely independent in business, personnel, assets, organization and finance from its largest
shareholder ever since its establishment. The Company has an independent and complete business system and independent
management capability.
1. In terms of business: The Company owns independent purchase and supply system of the raw resources, complete
production systems, independent sale system and customers. The Company is completely independent from the largest
shareholder in business. The largest shareholder and its subsidiaries do not engage any identical business or similar
business as the Company.
2. In terms of personnel: The Company established integrated management system of labor, personnel, salaries and the
social security, which were absolutely independent from its holding shareholder’s. Personnel of the managers, person in
charge of the financial and other executive managers are obtained remuneration from the Company since on duty in the
Company, and never received remuneration or take part-time jobs in the largest shareholder’ company and other
enterprises controlled by the largest shareholder. The recruitment and dismissal of Directors are conducted through legal
procedure since the Company was listed and the manager has been appointed or dismissed by Board of Directors. The
Board of Directors and the Shareholders’ General Meeting have not received any interference of decisions on personnel
appointment and removal from the largest shareholder.
3. In terms of asset: the Company is able to operate business independently and enjoys full control over the production
system, auxiliary production system and facilities, land use right, industry property and non-patent technology owned or
used by the Company. The investments to the Company from largest shareholder are monetary assets, and the largest
shareholder has never occupied, damaged or intervened to operation on these assets.
4. In terms of organization: The Company possessed sound corporate governance structure, established Shareholders’
General Meeting, Board of Directors, Supervisory Board, appointed general manager, and fixed related function
departments. The Company had been totally independent from its largest shareholder in organization structure. The
Company has its own office and production sites that are different from those of the largest shareholder. The largest
shareholder and its related parties didn’t deliver any operation plan and order to the Company, neither influence the
independence on management of the Company by any forms.
5. In terms of finance: The Company has set up independent financial department, established independent accounting
calculation system and financial management system (included management system of its subsidiaries). The financial
personnel of the Company didn’t take part-time jobs in units of largest shareholder or its subordinate units. The Company
had independent bank accounts, separated from the largest shareholder. The Company is independent taxpayer, paid taxes
independently according the laws and didn’t pay mixed taxes with the largest shareholder. The financial decision-making
of the Company was independent, and the use and management of funds were independent. The Company never offered
guarantee to their largest shareholder and its subordinate units and other related party. The largest shareholder and its
related have never occupied or disguisedly occupied the capital of the Company.
III. Horizontal competition
□ Applicable √ Not applicable
IV. Information on the annual general meeting and extraordinary general meeting held during
the report period
1. The general meeting of shareholders during the report period
- 44 -
CSG Annual Report 2021
Ratio of
Date of
Session of meeting Type investor Convened date Meeting resolution
disclosure
participation
Announcement on Resolutions
Extraordinary of the First Extraordinary
The First Extraordinary
General
General Shareholders’ 29.26% March 8, 2021 March 9, 2021 General Shareholders’ Meeting
Shareholders’
Meeting of 2021 of 2021（Announcement No.:
Meeting
2021-006）
Announcement on Resolutions
The Second Extraordinary of the Second Extraordinary
Extraordinary General General
28.84% April 13, 2021 April 14, 2021 General Shareholders’ Meeting
Shareholders’ Meeting Shareholders’
of 2021（Announcement No.:
of 2021 Meeting
2021-013）
Announcement on Resolutions
Annual of Annual General
Annual General
General
Shareholders’ Meeting 28.48% May 7, 2021 May 8, 2021 Shareholders’ Meeting of 2020
Shareholders’
of 2020 （Announcement No.: 2021-
Meeting
024）
Announcement on Resolutions
The Third Extraordinary of the Third Extraordinary
Extraordinary General General August 25, August 26, General Shareholders’ Meeting
28.36%
Shareholders’ Meeting Shareholders’ 2021 2021
of 2021（Announcement No.:
of 2021 Meeting
2021-038）
Announcement on Resolutions
The Fourth Extraordinary of the Fourth Extraordinary
Extraordinary General General November 15, November 16, General Shareholders’ Meeting
29.91%
Shareholders’ Meeting Shareholders’ 2021 2021
of 2021（Announcement No.:
of 2021 Meeting
2021-050）
2. The preference shareholders whose voting rights have been restored request the convening of an extraordinary
general meeting
□ Applicable √ Not applicable
V. Directors, supervisors and senior executives
1. Basic information
Amount Amount Reason
Shares
of shares of shares for
Start dated held at Other Shares held
Working End date of increased decreased increase
Name Title Sex Age of office period- changes at period-
status office term in this in this or
term begin (share) end (Share)
period period decrease
(Share)
(Share) (Share) of shares
Chairman of Currently in
Chen Lin Female 50 2016-11-19 2023-05-21 1,623,065 1,623,065
the Board office
Currently in
Wang Jian Director, CEO Male 58 2016-01-21 2023-05-21 1,012,000 1,012,000
office
Independent Currently in
Zhu Guilong Male 58 2017-05-02 2023-05-21
Director office
Independent Currently in
Zhu Qianyu Female 47 2019-04-10 2023-05-21
Director office
Independent Currently in
Xu Nianhang Male 44 2020-05-21 2023-05-21
Director office
Currently in
Zhang Jinshun Director Male 57 2017-05-02 2023-05-21
office
Currently in
Cheng Xibao Director Female 40 2016-01-21 2023-05-21
office
Cheng Currently in
Director Male 41 2020-05-21 2023-05-21
Jinggang office
Currently in
Yao Zhuanghe Director Male 63 2020-05-21 2023-05-21
office
- 45 -
CSG Annual Report 2021
Chairman of
the
Supervisory Currently in
Li Jianghua Male 45 2019-03-27 2023-05-21
Board, office
Employee
Supervisor
Currently in
Meng Lili Supervisor Female 44 2020-05-21 2023-05-21
office
Employee Currently in
Dai Pingsheng Male 40 2021-07-08 2023-05-21
Supervisor office
Secretary of
the Party Currently in
He Jin Male 50 2018-04-08 2023-05-21 897,600 897,600
Committee,Vi office
ce president
Secretary of Currently in
Yang Xinyu Male 42 2017-05-02 2023-05-21 1,159,332 1,159,332
the Board office
Employee Personal
Gao Changkun Post leaving Male 53 2018-08-30 2021-07-08 500 500
Supervisor purchase
Executive
Lu Wenhui Vice Post leaving Male 59 2017-02-23 2021-07-07 1,217,298 1,217,298
President
Total -- -- -- -- -- -- 5,909,295 500 5,909,795
During the reportperiod, whether there was any resignation of directors and supervisors and dismissal of senior executives
during their term of office
√Yes □No
The Company received a written resignation report submitted by Employee Supervisor Mr. Gao Changkun in July 2021.
Mr. Gao Changkun resigned from his position as employee supervisor of the Company due to work adjustment.
The Company received a written resignation report submitted by the Executive Vice President Mr. Lu Wenhui in July
2021. Mr. Lu Wenhui resigned as the Company's executive vice president due to personal reasons.
Changes in directors, supervisors and senior executives of the company
√Applicable □ Not applicable
Name Position Type Date Reason
Dai Pingsheng Employee Supervisor Be elected July 8, 2021 Election of Workers Congress
Gao Changkun Employee Supervisor Post leaving July 8, 2021 Voluntary turnover
Lu Wenhui Executive Vice President Dismissed July 7, 2021 Voluntary resignation
2. Post-holding
Major professional background, working experience of directors, supervisors and senior executive and their major
responsibility in the Company at present
Chen Lin: At present, she is Chairman of Board of Supervisors of Foresea Life Insurance Co., Ltd. and Chairman of the
Board of the Company.
Wang Jian: took posts of General Manager and Executive Director of China North Industries Tianjin Corporation,
General Manager of China North Vehicle Co., Ltd., and Deputy Chairman and Chairman of Shanghai Nonferrous Metals
E-Commerce Co., Ltd., General Manager of Investment Management Department of China North Industries Corporation,
Chairman of the Board of Chengdu Yinhe Dynasty Hotel Co., Ltd., Deputy Chairman of the Board of Shenzhen Baoyin
Electricity Co., Ltd., Chairman of the Board of North Property Development Company Limited. At present, he is Director
and CEO of the Company.
Zhu Guilong: took posts of Researcher of the Institute of Forecasting and Development at Hefei University of
Technology, Independent Director of Jiangsu Saifutian Steel Cable Co., Ltd., Independent Director of Guangzhou
Kingmed Diagnostics Group Co., Ltd., Director of Guangdong Yiji Network Co., Ltd., Director of Guangzhou Nuocheng
Biological Products Co., Ltd. At present, he is a Professor and Doctoral Tutor of the School of Business Administration,
South China University of Technology, Executive Director of Chinese Association For Science of Science and S&T
Policy, Vice Chairman of Guangdong Institute of Technical Economy and Management Modernization, Vice Chairman
of Guangdong Economic Society, Independent Director of GRG BANKING EQUIPMENT CO., Ltd., Independent
Director of Guangzhou Bank Co., Ltd., Director of Jiangxi Jiufeng Energy Co., Ltd., , Director of CS Richland Asset
Co., Ltd., Independent Director of Sirio Pharma Co., Ltd., and Independent Director of the Company.
- 46 -
CSG Annual Report 2021
Zhu Qianyu: took posts of Lecturer and Associate Professor of School of Finance of South-Central Minzu University,
postdoctor in Finance Department of Guanghua School of Management at Peking University, and researcher of Peking
University Finance and Securities Research Center, Independent Director of LandOcean Energy Services Co., Ltd. At
present, she is Associate Professor at Renmin University of China, Researcher of National Institute of Development and
Strategy of Renmin University of China, Institute of Rural Economy and Finance of Renmin University of China, and
Double Carbon Research Institute of Renmin University of China, Independent Director of Kingfa SCI.&TECH. Co.,
Ltd., and Independent Director of the Company.
Xu Nianhang:took posts ofPostdoctoral Researcher in the Department of finance of Guanghua School of Management
at Peking University, Lecturer and Associate Professor in the Business School of Renmin University of China,
Independent Director of Danhua Chemical Technology Co., Ltd., and Independent Director of Leador Spatial Information
Technology Corporation, Independent Director of Xinsteel Group Co., Ltd., Independent Director of Fujian Newchoice
Pipe Technology Co., Ltd., Independent Director of Inner Mongolia Dazhong Mining Co., Ltd. (unlisted company). At
present, he is Director, Professor and Doctoral Tutor of the Department of Finance and finance, Business School of
Renmin University of China, Independent Director of Chongqing Three Gorges Bank Co., Ltd. (unlisted company),
Independent Director of Beijing iHandy Mobile Inc. (unlisted company), Independent Director of Anhui Wantong
Technology Co., Ltd. and Independent Director of the Company.
Zhang Jinshun: At present, he is Director of the Company.
Cheng Xibao: took posts of Deputy Manager and Manager of Financial Department of Huizhou Olympic Garden Co.,
Ltd., which is a subsidiary of China Sports Group Industry, Manager of Financial Department of Shenzhen Xuansheng
Investment Co., Ltd., which is a subsidiary of Foxconn, and Manager, Vice President, Executive Vice President of
Financial Department, President Assistant, Vice President of Shenzhen Baoneng Investment Group Co., Ltd., Director of
Foresea Life Insurance Co., Ltd., Supervisor of Guizhou Baoneng Automobile Co., Ltd. At present, she is Senior Vice
President of Shenzhen Baoneng Investment Group Co., Ltd., Executive Vice President of Baoneng City Development
and Construction Group Co., Ltd., the Supervisor of Xinjiang Qianhai United Property & Casualty Insurance Co., Ltd.,
Director of Baoneng Automobile Co., Ltd., Director of Qoros Automobile Co., Ltd., Director of Shenzhen Baoneng
Travel Co., Ltd., and Director of the Company.
Cheng Jinggang: took posts of Credit Analyst of Dagong Global Credit Rating Co., Ltd., Senior Credit Analyst of the
Fixed Income Department of Funde Sino Life Insurance Co., Ltd., Senior Manager of the Credit Evaluation Department
of Sino Life Asset Management Co., Ltd. At present, he is Deputy Director of the Asset Management Center of Foresea
Life Insurance Co., Ltd. and Director of the Company.
Yao Zhuanghe: took posts of Deputy Director of Food Engineering Department of South China University of
Technology, Deputy General Manager and General Manager of Guangdong United Food Enterprise Center, Director of
Guangdong Yuehua International Trade Group, Deputy General Manager of Guangdong Guangye Economic
Development Group, Director and General Manager of Guangdong Guangye Investment Consulting Co., Ltd., Director
and Deputy Party secretary of Guangdong Guangye Environmental Construction Group (former Guangdong Guangye
Real Estate Group). At present, he is Director of the Company.
Li Jianghua:took posts of Assistant of General Manager and Deputy General Manager of the Operation Service
Department of the Information Management Center of Foresea Life Insurance, Deputy General Manager of IT Department
of Xinjiang Qianhai United Property& Casualty Insurance Co., Ltd., General Manager of Integrated Financial
Development Department of Foresea Life Insurance. At present, he is Director of the Information Management
Department of the Company, Chairman of the Supervisory Board of the Company.
Meng Lili: At present, she is Deputy Director of Human Resources Center, General Manager of the Office of the Board
of Directors and Employee Supervisor of Foresea Life Insurance Co., Ltd., and Supervisor of the Company.
Dai Pingsheng: took posts of Financial Manager of Dongguan CSG Solar Glass Co., Ltd., Deputy Manager, Assistant
Director and Deputy Director of the Financial Management Department of CSG, and the Vice President of the
Architectural Glass Division of CSG. At present, he is the Director of the Investment Department and Employee
Supervisor of the Company.
He Jin: took posts of General Manager of Shenzhen CSG Float Glass Co., Ltd., the Vice President of Float Glass Division,
General Manager of Dongguan CSG Solar Glass Co., Ltd., General Manager of Chengdu CSG Glass Co., Ltd. and General
Manager of Qingyuan CSG Energy Saving New Materials Co., Ltd., Assistant President of the Company and President
- 47 -
CSG Annual Report 2021
of Flat Glass Division. At present, he is Secretary of the Party Committee, Vice President of the Company and Chairman
of Management Committee of the Company.
Yang Xinyu: took posts of Consultant of the Securities Department of Beijing KWM Law Firm, Risk Control Director
and Assistant of Chairman of the Board and Head of the Law Department of Honghua International Medical Holding Co.,
Ltd., and the Director of the Audit and Supervision Department, the Director of the Stock Affairs Department of the
Company. At present, he is Secretary of the Board of Directors and Deputy Vice Director of the Company.
Post-holding in shareholder’s unit
√Applicable □ Not applicable
Received
Position in Start dated of End date of remuneration from
Name Name of shareholder’s unit
shareholder’s unit office term office term shareholder’s unit
or not
Chairman of
Chen Lin Foresea Life Insurance Co., Ltd. Apr. 2012 Yes
Supervisory Board
Deputy Director of the
Cheng
Foresea Life Insurance Co., Ltd. Asset Management Apr. 2012 Yes
Jinggang
Center
Deputy Director of
Human Resources
Center, General
Meng Lili Foresea Life Insurance Co., Ltd. Manager of the Office June 2013 Yes
of the Board of
Directors, Employee
Supervisor
Note of post-
holding in
N/A
shareholder’s
unit
Post-holding in other unit
√Applicable □Not applicable
Received
Position in Start dated of End date of
Name Name of other units remuneration from
other unit office term office term
other unit or not
South China University of Professor and Doctoral
Aug. 2000 Yes
Technology Tutor
GRG BANKING
Independent Director Dec. 2020 Yes
EQUIPMENT CO., Ltd.
Zhu Guilong Guangzhou Bank Co., Ltd. Independent Director Apr. 2019 Yes
Sirio Pharma Co., Ltd. Independent Director July 2021 Yes
Jiangxi Jiufeng Energy Co.,
Director Jan. 2019 Yes
Ltd.
CS Richland Asset Co., Ltd. Director Jul.2019 Yes
Renmin University of China Associate Professor Mar. 2010 Yes
Zhu Qianyu Kingfa SCI.&TECH. Co.,
Independent Director Jan.2021 Yes
Ltd.
Director, Professor and
Renmin University of China Sep.2014 Yes
Doctoral Tutor
Chongqing Three Gorges
Xu Nianhang Independent Director May 2019 Yes
Bank Co., Ltd.
Beijing iHandy Mobile Inc.
Independent Director Oct.2018 Yes
(unlisted company)
Anhui Wantong Technology
Independent Director Feb. 2022 Yes
Co., Ltd.
Shenzhen Baoneng
Senior Vice President Nov. 2020 No
Cheng Xibao Investment Group Co., Ltd.
- 48 -
CSG Annual Report 2021
Baoneng City Development
Executive Vice
and Construction Group Co., Oct. 2018 Yes
President
Ltd.
Xinjiang Qianhai United
Property & Casualty Supervisor Sep. 2016 No
Insurance Co., Ltd.
Baoneng Automobile Co.,
Director Mar. 2017 No
Ltd.
Qoros Automobile Co., Ltd. Director Dec. 2017 No
Shenzhen Baoneng Travel
Director Sep. 2019 No
Co., LTD.
Note of post-
holding in N/A
other unit
Punishment of securities regulatory authority in the last three years to the Company’s current and retired directors,
supervisors and senior management during the report period
□ Applicable √ Not applicable
3. Remuneration of directors, supervisors and senior executives
Decision-making procedures, recognition basis and payment for directors, supervisors and senior executives
1. Decision-making procedures: The allowances for independent directors, external directors from non-shareholder’s unit
are planned and proposed by the Remuneration &Assessment Committee of the Board and approved by the Shareholders’
General Meeting after deliberation of the Board. Remuneration for senior executives is proposed by the Remuneration
&Assessment Committee of the Board and decided by the Board after discussion.
2. Confirmation basis of remuneration: The allowances for independent directors and external directors are confirmed
based on industry standards and real situation of the Company. The remuneration for senior executives implements
floating reward mechanism with reference to basic salary and business performance. Bonus for performance rewards is
withdrawal by proportion quarterly according to return on equity and based on the total net profit after taxation.
3. Actual remuneration payment: The allowances for each of the Company’s independent directors, external director from
non-shareholder’s unit are RMB 0.15 million per year, paid by actual month of service. The total remuneration for
directors, supervisor and senior executives in the report period was RMB 26.3495 million.
Remuneration of directors, supervisors and senior executives of the company during the report period
Unit: RMB 0,000
Total Received
remuneration remuneration
Name Title Sex Age Post-holding status obtained from from related
the Company party of the
before taxation Company or not
Chen Lin Chairman of the Board Female 50 Currently in office Yes
Wang Jian Director, CEO Male 58 Currently in office 507.44 No
Zhu Guilong Independent Director Male 58 Currently in office 15 No
Zhu Qianyu Independent Director Female 47 Currently in office 15 No
Xu Nianhang Independent Director Male 44 Currently in office 15 No
Zhang Jinshun Director Male 57 Currently in office Yes
Cheng Xibao Director Female 40 Currently in office Yes
Cheng Jinggang Director Male 41 Currently in office Yes
Yao Zhuanghe Director Male 63 Currently in office 15 No
Chairman of the
Li Jianghua Supervisory Board Male 45 Currently in office 140.46 No
Employee Supervisor
Meng Lili Supervisor Female 44 Currently in office Yes
Dai Pingsheng Employee Supervisor Male 40 Currently in office 102.19 No
- 49 -
CSG Annual Report 2021
Secretary of the Party
He Jin Committee, Vice Male 50 Currently in office 730.18 No
president
Yang Xinyu Secretary of the Board Male 42 Currently in office 337.44 No
Gao Changkun Employee Supervisor Male 53 Post leaving 191.97 No
Lu Wenhui Executive Vice President Male 59 Post leaving 565.27 No
Total 2,634.95
VI. Directors' performance of duties during the report period
1. Board of directors in the report period
Session Meeting date Date of disclosure Resolution of the meeting
For details, please refer to Juchao Website
The Interim Meeting of
(www.cninfo.com.cn): "Announcement on
the Ninth Board of January 7, 2021 January 8, 2021
Resolution of the Interim Meeting of the Ninth
Directors
Board of Directors" (Announcement No.: 2021-001).
For details, please refer to Juchao Website
The Interim Meeting of
(www.cninfo.com.cn): "Announcement on
the Ninth Board of February 18, 2021 February 19, 2021
Resolution of the Interim Meeting of the Ninth
Directors
Board of Directors" (Announcement No.: 2021-003).
For details, please refer to Juchao Website
The Interim Meeting of
(www.cninfo.com.cn): "Announcement on
the Ninth Board of March 26, 2021 March 27, 2021
Resolution of the Interim Meeting of the Ninth
Directors
Board of Directors" (Announcement No.: 2021-008).
For details, please refer to Juchao Website
The Fourth Meeting of
(www.cninfo.com.cn): "Announcement on
the Ninth Board of April 13, 2021 April 15, 2021
Resolution of the Fourth Meeting of the Ninth Board
Directors
of Directors" (Announcement No.: 2021-014).
The Fifth Meeting of
Reviewed and approved "The First Quarter Report
the Ninth Board of April 23, 2021 --
2021".
Directors
For details, please refer to Juchao Website
The Interim Meeting of
(www.cninfo.com.cn): "Announcement on
the Ninth Board of June 7, 2021 June 8, 2021
Resolution of the Interim Meeting of the Ninth
Directors
Board of Directors" (Announcement No.: 2021-025).
For details, please refer to Juchao Website
The Interim Meeting of
(www.cninfo.com.cn): "Announcement on
the Ninth Board of June 28, 2021 June 29, 2021
Resolution of the Interim Meeting of the Ninth
Directors
Board of Directors" (Announcement No.: 2021-028).
For details, please refer to Juchao Website
The Interim Meeting of
(www.cninfo.com.cn): "Announcement on
the Ninth Board of August 9, 2021 August 10, 2021
Resolution of the Interim Meeting of the Ninth
Directors
Board of Directors" (Announcement No.: 2021-035).
For details, please refer to Juchao Website
The Sixth Meeting of
(www.cninfo.com.cn): "Announcement on
the Ninth Board of August 25, 2021 August 27, 2021
Resolution of the Sixth Meeting of the Ninth Board
Directors
of Directors" (Announcement No.: 2021-039).
For details, please refer to Juchao Website
The Interim Meeting of
September 9, (www.cninfo.com.cn): "Announcement on
the Ninth Board of September 10, 2021
2021 Resolution of the Interim Meeting of the Ninth
Directors
Board of Directors" (Announcement No.: 2021-041).
For details, please refer to Juchao Website
The Interim Meeting of
(www.cninfo.com.cn): "Announcement on
the Ninth Board of October 14, 2021 October 15, 2021
Resolution of the Interim Meeting of the Ninth
Directors
Board of Directors" (Announcement No.: 2021-043).
- 50 -
CSG Annual Report 2021
For details, please refer to Juchao Website
The Seventh Meeting
(www.cninfo.com.cn): "Announcement on
of the Ninth Board of October 29, 2021 October 30, 2021
Resolution of the Seventh Meeting of the Ninth
Directors
Board of Directors" (Announcement No.: 2021-046).
For details, please refer to Juchao Website
The Interim Meeting of
(www.cninfo.com.cn): "Announcement on
the Ninth Board of December 2, 2021 December 3, 2021
Resolution of the Interim Meeting of the Ninth
Directors
Board of Directors" (Announcement No.: 2021-051).
For details, please refer to Juchao Website
The Interim Meeting of
December 24, (www.cninfo.com.cn): "Announcement on
the Ninth Board of December 25, 2021
2021 Resolution of the Interim Meeting of the Ninth
Directors
Board of Directors" (Announcement No.: 2021-053).
2. Attendance of directors at the board of directors and shareholders' meeting
Attendance of directors at the board of directors and shareholders' meeting
Number of
Failure to
board Number of
Number of personally Number of
meetings that Number of attendances Number
Name of Meetings attend board attendance
should be Spot of board of
director Attended by meetings of General
attended in Attendances meeting by absence
Communication successively Meeting
this report proxy
twice
period
Chen Lin 14 2 12 0 0 No 4
Wang Jian 14 2 12 0 0 No 5
Zhu Guilong 14 1 13 0 0 No 5
Zhu Qianyu 14 1 13 0 0 No 4
Xu Nianhang 14 1 13 0 0 No 4
Zhang Jinshun 14 1 13 0 0 No 1
Cheng Xibao 14 0 14 0 0 No 2
Cheng Jinggang 14 2 12 0 0 No 5
Yao Zhuanghe 14 1 13 0 0 No 4
Note to failure to attend the board meeting successively twice
Not applicable
3. Objections raised by directors on matters related to the company
Whether the directors raised any objection to the relevant matters of the company
□ Yes √No
During the report period, the directors did not raise any objection to the relevant matters of the Company.
4. Other note to duty performance of directors
Whether the directors' suggestions on the company have been adopted
√Yes □ No
During the report period, the directors of the Company strictly followed the "Company Law", "Securities Law",
"Shenzhen Stock Exchange Listing Rules", "Guidelines for Self-discipline and Supervision of Listed Companies No. 1-
Standardized Operation of Listed Companies on the Main Board", “Guidance on the establishment of independent director
system in Listed Companies” and other laws and regulations, as well as the “Articles of Association” and other relevant
systems, to attend the board meetings and shareholders' meetings of the Company, to conscientiously perform duties, and
to provide constructive comments or suggestions on decision-making for the Company's development. Among them, the
independent directors carefully reviewed various proposals of the Company's Board of Directors, and expressed
independent opinions on the Company's major business management matters, profit distribution, employment of audit
institutions, internal control construction and other related matters. It has played an active role in safeguarding the interests
of the Company and minority shareholders.
- 51 -
CSG Annual Report 2021
VII. Duty performance of Special Committees under the Board of Directors in the report period
Name of Number of Important Specific
About the Meeting Other duty
Special meetings Content of meetings comments and objections
members date performance
Committee held suggestions made (if any)
Reviewed and
approved "Matters
February
Concerning Providing
15, 2021
Guarantees for
Subsidiaries".
Reviewed and
Approved "Matters
Concerning Xianning
CSG's New 1200T/D
Photovoltaic
Packaging Material
Production Line
Project", "Matters
March 23, Concerning the
2021 Second Line
Construction Project
of Hebei Panel Ultra- During the report
Thin Electronic period, the
Glass", "Matters members of the
Concerning the Strategy
Carrying Out Bill Committee
Chairman of Pool Business in conducted in-
the 2021". depth discussions
committee: Reviewed and and proposed
Chen Lin Approved "Proposal valuable
Committee on Withdrawing suggestions and
Strategy members: 12 Provisions for Asset opinions for major Nil Nil
Committee Wang Jian, Impairment", decisions which
April 2,
Cheng "Proposal on Profit influence the
2021
Jinggang, Distribution for development of
Zhu 2020", "Proposal on the Company, and
Guilong, Using Own Funds to provided strong
Zhu Qianyu Purchase Structured support for the
Deposits". scientific
Reviewed and decision-making
approved the "Matters of the Board of
Concerning the Directors.
Technical
Transformation and
Upgrading Project of
Dongguan CSG Solar
Double Glass
Calendering Line",
June 3,
"Matters Concerning
2021
Termination of Some
Investment Projects",
"Matters Concerning
Providing Guarantee
for Subsidiaries", and
"Matters Concerning
Issuing Letters of
Guarantee for
Subsidiaries matters".
- 52 -
CSG Annual Report 2021
Reviewed and
approved"Matters
June 24,
Concerning Providing
2021
Guarantees for
Subsidiaries".
Reviewed and
approvedMatters
August 6,
Concerning Providing
2021
Guarantees for
Subsidiaries.
Reviewed and
approved the
"Proposal on
August 13, Investing in the
2021 Construction of CSG
East China
Headquarters
Building"
Reviewed and
approved the "Matters
Concerning the
Investment and
September Construction of CSG
6, 2021 Guangxi Beihai
Photovoltaic Green
Energy Industrial
Park (Phase I)
Project".
Reviewed and
approved the "Matters
Concerning Provision
for Asset
Impairment" and the
"Matters Concerning
October
the Investment and
11, 2021
Construction of Hefei
CSG Energy-saving
Glass Intelligent
Manufacturing
Industry Base
Project".
Reviewed and
approvedMatters
October
Concerning Providing
19, 2021
Guarantees for
Subsidiaries.
Reviewed and
approved the "Matters
Concerning the
Reconstruction and
November
Expansion of the
29, 2021
Production Line of
Xianning CSG
Energy-saving Glass
Co., Ltd."
Reviewed and
approved "Matters
December
Concerning Qingyuan
24, 2021
CSG Energy-saving
New Materials Co.,
- 53 -
CSG Annual Report 2021
Ltd. Phase I
Upgrading and
Technical
Transformation
Project","Matters
Concerning Providing
Guarantees for
Subsidiaries"
Reviewed and During the report
approved "Changes in period, the Audit
Accounting Policies", Committee
April 2, "Financial Final provided advice
Chairman of Nil Nil
2021 Report2020", and and suggestions
the
"Internal Control on guiding the
committee:
Evaluation internal audit
Xu
Report2020". work, supervising
Nianhang
Reviewed and and evaluating
Committee April 13,
Audit approved "The First external audit Nil Nil
members: 4 2021
Committee Quarter Report 2021". institutions, as
Zhu
Reviewed and well as effective
Guilong,Zhu August 13,
Approved"The Semi- internal control Nil Nil
Qianyu, 2021
annual Report 2021". mechanism
Chen Lin,
Reviewed and establishing, and
Cheng
Xibao approved "The Third actively
October Quarter 2021" and safeguarded the
Nil Nil
19, 2021 "Appointment of the interests of the
Audit Institution for Company and all
the Year 2021". shareholders.
During the report
period, the
Chairman of Remuneration and
the Assessment
committee: Committee
Zhu Guilong Reviewed and carefully
Remunerati Committee approved the examined and
on and members: April 2, remuneration of approved the
1 Nil Nil
Assessment Xu 2021 directors, supervisors remuneration of
Committee Nianhang, and senior executives directors,
Zhu Qianyu, of CSG in 2020 supervisors and
Chen Lin, senior executives
Cheng and earnestly
Jinggang performed
relevant
responsibilities.
During the report
Chairman of
period, the
the
Nomination
committee:
Committee
Zhu Qianyu
effectively
Committee Evaluated the
Nomination April 2, evaluated the
members: 1 performance of the Nil Nil
Committee 2021 performance of
Zhu directors in 2020.
directors and
Guilong, Xu
earnestly
Nianhang,
performed
Chen Li,
relevant
Wang Jian
responsibilities.
- 54 -
CSG Annual Report 2021
VIII. Work Summary of the Supervisory Committee
Did the Supervisory Committee find any risk involved in performing the supervision activities in the report period
□ Yes √ No
The Supervisory Committee had no objection to the supervision matters during the report period.
IX. Employees
1. Number, Professional Composition and Education Background of Employees
（ ）
Number of employees in the parent company (person) 503 Note
Number of employees in major subsidiaries of the Company (person) 11,407
Total number of employees (person) 11,910
Total number of employees received salaries in the period (person) 11,910
Number of retired employees whose costs borne by the parent company and its main
0
subsidiaries (person)
Professional composition
Number of profession
Category of profession composition
composition (person)
Production personnel 8,095
Salesman 734
Technician 1,973
Financial personnel 135
Administrative personnel 973
Total 11,910
Education background
Category of education background Number (person)
Doctor 9
Master 164
Undergraduate 2,707
Junior college 2,300
Degree below junior college 6,730
Total 11,910
Note: Among them, there are 321 employees sent by the headquarters to the subsidiary.
2. Staff remuneration policy
In 2021, the Company continue to emphasize the principle of "Performance Orientation" in compensation management,
through strengthening the concept of organizational performance and strengthening the application of performance results,
we advocate that salary incentives should be inclined to high-performing organizations and high-performing individuals,
to improve the work enthusiasm of employees, and then improve the overall performance of the organization, to achieve
the business objectives.
3. Staff training plan
The Company has always attached great importance to the talent team construction and staff training and development.
Every year, the Company sets up a special fund for the employees' skills training, capacity development and quality
improvement. The Company has established a comprehensive training and development system for all kinds of employees,
and developed personalized training and development systems for senior, middle and grass-roots employees, so as to
stimulate the drive of employees, enhance the competitiveness of the enterprise, and provide a strong guarantee for the
development of CSG Group. Based on the strategy of sustainable development of human resources, the Company will
continue to deepen the scientific and systematic operation of training and development, so as to energize, promote
management and increase benefits, and achieve a win-win situation for the growth of employees and the development of
the enterprise.
- 55 -
CSG Annual Report 2021
4. Labor outsourcing
□ Applicable √ Not applicable
X. Profit Distribution and Reserve Capitalization
Preparation, implementation or adjustment of the policy for profit distribution, especially the policy for cash dividend
distribution in the report period
√Applicable □ Not applicable
The profit distribution plan for 2020 was approved by Annual General Shareholders’ Meeting of 2020 held on 7 May
2021 which distributed distributing cash dividend of RMB 1 (tax included) for every 10 shares to all shareholders. Notice
of the distribution was published on China Securities Journal, Securities Times, Shanghai Securities News and Hong
Kong Commercial Daily on 9 June 2021, and the profit had been distributed.
Special explanation on cash dividend policy
Satisfy regulations of General Meeting or requirement of Article of Association (Yes/No) Yes
Well-defined and clearly dividend standards and proportion (Yes/No) Yes
Completed relevant decision-making process and mechanism (Yes/No) Yes
Independent directors perform duties completely and play a proper role (Yes/No) Yes
Minority shareholders have ample opportunities and their legitimate rights and interests are effectively
Yes
protected (Yes/No)
Condition and procedures are compliance and transparent while the cash bonus policy adjusted or
Yes
changed (Yes/No)
The Company gains profits in the report period and the retained profit of parent company is positive but no plan of cash
dividend proposed
□ Applicable √ Not applicable
Proposal of profit distribution preplan or share conversion from capital public reserve in the report period
√Applicable □ Not applicable
Distributing bonus shares for every 10 shares (share) 0
Distributing cash dividend for every 10 shares (tax included) (RMB) 2
Shares added for every 10-share base (Share) 0
Equity base for distribution preplan (share) 3,070,692,107
Total amount distribution in cash (RMB) (tax included) 614,138,421
Cash dividend amount in other ways (such as repurchasing shares) (RMB) 0
Total cash dividends (including other methods) (RMB) 614,138,421
Profit available for distribution (RMB) 1,765,173,270
Cash distributing accounted for the proportion of the total amount of profit
100%
distribution (including other methods)
Particular about cash dividend in the period
If the Company's development stage is not easy to distinguish but there are major capital expenditure arrangements,
when the profit is distributed, the proportion of cash dividends in this profit distribution should be at least 20%.
Details of proposal of profit distribution preplan or share conversion from capital public reserve
According to the financial report audited by Asia Pacific (Group) CPAs (special general partnership), the net profit
attributable to equity holders of the Company in consolidated statement was RMB 1,529,329,304 in 2021, and the net
profit of the parent company’s financial statements was RMB1,079,390,875.
Since cash dividend distribution bases on the distributable profit of parent company, the Company took 10% of the net
profit as stationary surplus reserve which was RMB 107,939,088 based on the net profit RMB 1,079,390,875 of parent
company statement 2021. The allocation for Shareholders in 2021was RMB 1,765,173,270.
The deliberated and approved plan of profit distribution in the Board Meeting is distributing cash dividend of RMB 2
yuan (tax included) for every 10 shares to all shareholders based on 3,070,692,107 shares of the total currently share
capital., and the total amount distribution is RMB 614,138,421 (including tax).The actual amount of the cash dividend
distributed will be determined according to the total share capital on the registration date of the Company's
implementation of the profit distribution plan.
The profit distribution plan complies with the "Company Law", "Listed Company Supervision Guidelines No. 3-Cash
Dividends for Listed Companies", the "Articles of Association" and the company's shareholder return plan, and other
relevant regulations. It is in line with the company's actual situation and future development plans, as well as taking
into account the interests of shareholders.
The above profit distribution proposal must be submitted to the 2021 Annual General Meeting of shareholders.
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CSG Annual Report 2021
XI. Implementation of the Company's Equity Incentive Plan, Employee Stock Ownership Plan
or Other Employee Incentive Measures
□ Applicable √ Not applicable
During the report period, the Company had no equity incentive plan, employee stock ownership plan or other employee
incentive measures and the implementation.
XII. Construction and Implementation of the Internal Control System during the Reporting
Period
1. Construction and Implementation of the Internal Control System
During the report period, the Company established a sound and complete internal control management system in
accordance with the requirements of the Company Law, the Securities Law, the Basic Norms for Enterprise Internal
Control and other internal control regulatory rules, oriented by risk management, and operated it effectively. It
strengthened and standardized its internal control which ensured the standardized operation of the Company and improved
the management level and efficiency of the Company, promoting the sustainable development of the Company and
protecting the legitimate rights and interests of investors.
2. Particular case found involving material defects in the internal control during the reporting period
□Yes √No
XIII. Management and Control of the Subsidiaries during the Report Period
During the report period, by establishing an effective internal control mechanism and implementing the internal control
management plan, the internal operation supervision of subsidiaries was strengthened; by establishing a sound internal
control system of subsidiaries, the implementation and continuous improvement was promoted; by carrying out process
monitoring and special evaluation, the process risk management of subsidiaries was strengthened; by organizing the
internal control publicity and training of subsidiaries, a good internal control environment was created; by supervising
the key businesses of subsidiaries, the legal compliance, reliability of financial reports, asset safety and operation
efficiency of subsidiaries was guaranteed.
XIV. Internal Control Self-assessment Report or Internal Control Audit Report1. Particulars
about significant defects found in the internal control during the report period
1. Self-assessment Report of the Internal Control
Disclosure date of full text of self-appraisal report of internal control April 25, 2022
More details found in “Report of Internal
Control of CSG for year of 2021”
Disclosure index of full text of self-appraisal report of internal control
published on Juchao Website
(www.cninfo.com.cn)
The ratio of the total assets of the units included in the scope of evaluation
93%
to the total assets of the Company's consolidated financial statements
The ratio of the operating income of the units included in the scope of
evaluation to the operating income of the Company's consolidated financial 98%
statements
Standards of Defects Evaluation
Category Financial Reports Non-financial Reports
Major defects:
Major defects:
A. Fraud of directors, supervisors and senior
A. Major decision-making mistakes
Qualitative criteria management;
caused by decision-making process of key
B. Ineffective control environment;
business;
C. Invalid internal supervision;
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CSG Annual Report 2021
D. Major internal control defects found and B. Serious violation of state laws and
reported to the management but haven’t been regulations;
corrected after a reasonable time; C. Serious brain drain of senior and
E. Material misstatements are found by the middle management and or personnel at
external audit but haven’t been found in the key technological posts;
process of internal control; D. Major or significant defects found in
F. Financial reports submitted during the the internal control evaluation have not
reporting period completely cannot meet the been rectified and reformed;
needs and are severely punished by E. The company's major negative news
regulatory agencies; frequently appears on media;
G. Other major defects that may affect the Significant defects:
report users’ correct judgment. A. Big deviation of execution caused by
Significant defects: executive routine of key business;
A. Defects or invalidation of important B. Regulatory authorities impose large
financial control procedures; amount of fines because the violation of
B. Significant misstatements are found by laws and regulations;
the external audit but haven’t been found in C. Defects or invalidation of important
the process of internal control; business’ internal control procedures;
C. Financial reports submitted during the Common defects: Other control defects
reporting period have mistakes frequently; except for major defects and significant
D. Other significant defects that may affect defects.
the report users’ correct judgment.
Common defects: Other control defects
except for major defects and significant
defects.
Major defects:
Major defects: A. Amount of direct property loss: the
A. Amount of net profit affected by direct loss amount is equal to or greater
misstatements (based on consolidated than 30 million yuan;
statements): amount affected by B. Group's reputation: major negative
misstatements is equal to or greater than 3% news spreads in numerous business areas
of net profit and the absolute amount is no or is widely reported by national media
less than 30 million yuan; and causes significant damages to the
B. Amount of assets and liabilities affected corporate reputation which takes more
by misstatements (based on consolidated than six months to be restored.
statements): amount affected by Significant defects:
misstatements is equal to or greater than 1% A. Amount of direct property loss: the
of total assets. direct loss amount is equal to or greater
Significant defects: than 20 million yuan but less than 30
A. Amount of net profit affected by million yuan;
Quantitative standard
misstatements (based on consolidated B. Group's reputation: negative news
statements): not belong to major defects and spreads inside the industry or is reported
amount affected by misstatements is equal to or focused by local media and causes
or greater than 2% of net profit and the certain damages to the corporate
absolute amount is no less than 20 million reputation which takes more than three
yuan; months but less than six months to be
B. Amount of assets and liabilities affected restored.
by misstatements (based on consolidated Common defects:
statements): amount affected by A. Amount of direct property loss: defects
misstatements is equal to or greater than except for major and significant defects.
0.5% of total assets but less than 1% of total B. Group's reputation: negative news
assets. spreads within the group and causes minor
Common defects: Defects except for major damages to the corporate reputation which
and significant defects. takes less than three months to be
restored.
Amount of significant
0
defects in financial reports
Amount of significant
defects in non-financial 0
reports
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CSG Annual Report 2021
Amount of important defects
0
in financial reports
Amount of important defects
0
in non-financial reports
2. Audit report of internal control
√Applicable □ Not applicable
Deliberations in Internal Control Audit Report
According to Guidelines of Enterprise Internal Control Audit and the relevant requirements of CICPA auditing
standards, Asia Pacific (Group) CPAs (special general partnership) (hereinafter referred to as AP) audited the
effectiveness of internal control over financial statements of the Company up to 31 December 2021, issued AP Ya-Kuai-
A-Zhuan-Zi （2022）01320008 Internal Control Audit Report and made the following opinions: AP thought that CSG
Holding Co., Ltd. maintained effective internal control over financial statements in all major aspects according to the
Fundamental Norms of Enterprise Internal Control and relevant rules on December 31, 2021.
Disclosure of internal control
Disclosure
audit report
Date of disclosing the internal
25 April 2022
control audit reports
Disclosure index of internal More details can be found in 2021 Internal Control Audit Report of CSG released on
control audit report Juchao Website (www.cninfo.com.cn)
Type of the auditor’s opinion Standard unqualified opinion
Whether there are major flaws
in the non-financial report or No
not
Whether the CPAs firm issued an Audit Report on Internal Control with non-standard opinion or not
□Yes √ No
Whether the Audit Report on Internal Control from the CPAs firm is in consistent with the Self-appraisal Report from
the Board or not
√ Yes □ No
XV. Rectification of the Problems Found in the Self-inspection during the Special Campaign to
Improve the Governance of Listed Companies
During the report period, in accordance with the spirit of the CSRC’s “Announcement on Launching Special Campaign
to Improve the Governance of Listed Companies” (CSRC Announcement [2020] No. 69) and other documents, the
Company fully completed the special self-inspection work according to the special self-inspection list for governance of
listed companies. After internal self-examination, the Company had not found any major deficiencies and risks in
standardized operation, and its corporate governance complied with the requirements specified in the "Company Law",
"Governance Guidelines for Listed Companies", "Guidelines on the Articles of Association of Listed Companies" and
other laws and regulations with quite complete governance structure and law-compliance operation.
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CSG Annual Report 2021
Section V. Environment and social responsibility
I. Major environmental issues
The Company needs to comply with the disclosure requirements of non-metal building materials related industries in
"Shenzhen Stock Exchange Listed Companies Self-discipline Supervision Guide No. 3 - Industry Information Disclosure"
Environmental protection related policies and industry standards
The Company implements the "Environmental Protection Law of the People's Republic of China", "the Law of the
People's Republic of China on the Prevention and Control of Air Pollution", the "Law of the People's Republic of China
on the Prevention and Control of Water Pollution", the "Law of the People's Republic of China on the Prevention and
Control of Noise Pollution", and the "Environmental Protection Tax Law of the People's Republic of China " and other
relevant environmental protection laws and regulations, and implements the "Flat Glass Industry Air Pollutant Emission
Standard", "Electronic Glass Working Air Pollutant Emission Standard", "Air Pollutant Comprehensive Emission
Standard", "Sewage Comprehensive Emission Standard", "Environmental Noise Emission Standards at the Boundary of
Industrial Enterprises" and other national, industry and local pollutant discharge standards.
Administrative license for environmental protection
The construction projects of each subsidiary carried out environmental impact assessment work and obtain EIA approval
in strict accordance with the requirements of the "Environment Impact Assessment Law of the People's Republic of
China" and the "Catalogue of Classified Management of Environmental Impact Assessment of Construction Projects".
During the construction of the project, the construction of pollution prevention and control facilities shall be carried out
in strict accordance with the requirements of the project "three simultaneous" and put into production and use at the same
time as the main project. During the trial production period, the inspection and acceptance shall be organized in
accordance with the relevant regulations on environmental protection acceptance of the completion of the construction
project in order to ensure that the construction project completes the inspection and acceptance work before it is officially
put into operation.
All subsidiaries have obtained the pollutant discharge permit and are within the validity period, and regularly submit the
implementation report of pollutant discharge permit.
Industrial emission standards and specific conditions of pollutant emission involved in production and operation
activities
Name of Names of Number of
Company or main Way of Exhaust Exhaust vent Emission Implementation of Approved
subsidiary pollutants emission vent distribution concentration pollutant emission Total total Excessive
and standards emission emission emissions
characteristi
c pollutants
Dust ≤30mg/m
Particulates： Particulates
《Emission standard
Xianning Continuo 22.78t ：96.82t/a
CSG Soot us/Interm 16
Production ≤25 mg/m of air pollutants for
N/A
plant area flat glass industry》
Glass Co., Ltd. ittent
SO2 ≤200 mg/m (GB26453-2011) 224.15t 636.5t/a
NOx ≤350 mg/m 404.84t 1113.89t/a
Chengdu CSG Dust Continuo
Production ≤20mg/m Particulates
Particulates：
us/Interm 15 《Emission standard ： N/A
Glass Co., Ltd plant area 28.68t
Soot ittent ≤20mg/m 142.114t/a
- 60 -
CSG Annual Report 2021
of air pollutants for
SO2 ≤200mg/m 274.3t 1136.917t/a
flat glass industry》
NOx ≤350mg/m (GB26453-2011) 513.53t 1989.609t/a
Dust ≤10mg/m
《Ultra low Particulates： Particulates
Soot Continuo ≤10mg/m emission standard of 6.783t ：59.78t/a
Hebei CSG Production
us/Interm 16 air pollutants for flat N/A
Glass Co., Ltd. plant area
SO2 ittent ≤50mg/m glass industry》 32.087t 498.18t/a
(DB13/2168-2020)
NOx ≤200mg/m 207.148t 982.2t/a
Dust ≤15mg/m
Particulates： Particulates
《Emission standard 23.19t ：76.91t/a
Soot Continuo
Production ≤15mg/m of air pollutants for
Wujiang CSG
us/Interm 39 N/A
Glass Co., Ltd plant area flat glass industry》 35.67t
SO2 ittent ≤50 mg/m 238.28t/a
(GB26453-2011)
NOx ≤150 mg/m 363.7t 818.04t/a
Dust ≤20mg/m
《Emission standard Particulates： Particulates
Dongguan CSG Soot Continuo ≤20mg/m of air pollutants for 12.86t ：34.85t/a
Production
Solar Glass Co., us/Interm 22 flat glass industry》 N/A
SO2 plant area ≤400 mg/m 254.42t 300.99t/a
Ltd. ittent （DB 44-2159-
2019）
NOx ≤550 mg/m 380.91t 535.67t/a
pH 6~9 《Guangdong / /
Dongguan CSG Province water
COD Intermitte 5 mg/L
Architectural 1 Sewage vent pollutant emission 0.149t 5.4t/a N/A
nt
Glass Co., Ltd. limit》（DB44/26-
Ammonia
0.424mg/L 2001） 0.013t 0.6t/a
nitrogen
《Guangdong
Province water
COD ≤70 mg/L pollutant emission 1.98t 2.44t/a
limit》（DB44/26-
2001）
《Pollutant emission
Sewage
Dongguan CSG standard for battery
NOx Intermitte vent， ≤30mg/m 3
10.21t 33.15t/a
PV-tech Co., 20 industry》 N/A
nt Production
Ltd.
plant area （GB30484-2013）
《VOC Emission
Standard for
Furniture
VOCs VOCs≤30mg/m Manufacturing 0.78t 1.93t/a
Industry》
（DB44/814-2010）
Dust ≤30mg/m； Particulates
Particulates：
《Pollutant emission
Soot Continuo ≤10 mg/m 0.149t ：8.2125t/a
Hebei Panel Production standard for Electric
us/Interm 5 N/A
Glass Co., Ltd. SO2 plant area ≤50 mg/m Glass industry》 2.038t 22t/a
ittent
（GB29495-2013）
NOx ≤200mg/m 3.989t 39.4t/a
《Sewage Integrated
Emission
COD ≤500mg/L Standards》Level 3 95.84t 99.5t/a N/A
Sewage
Yichang CSG Standard (GB8978-
Intermitte vent； 1996)
Display Co., 2
nt Production
Ltd. 《The Integrated
plant area
Emission Standard
NOx <240mg/m 3.2t 22.4t/a
of Air Pollutants》
（GB16297-1996）
Dust ≤20mg/m 《Electrical Glass Particulates： Particulates
Xianning CSG Soot Continuo ≤15 mg/m Industry Air 1.962t ：17.656t/a
Production
Photovoltaic us/Interm 6 Pollutant Emission N/A
plant area
Glass Co., Ltd SO2 ittent ≤10 mg/m Standards》 0.095t 65.6t/a
NOx ≤330 mg/m (GB29495-2013) 59.814t 163.81t/a
Treatment of pollutants
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CSG Annual Report 2021
All subsidiaries have built pollution prevention and control facilities in accordance with the environmental impact
assessment documents of construction projects and relevant specifications, and adopted air pollution control process such
as electrostatic precipitator + SCR denitrification + semi-dry desulfurization + bag dust removal, ceramic filter cartridge
desulfurization, denitrification and dust removal integration, bag dust removal and water treatment process such as
neutralization + precipitation, fluidized bed, and biological oxidation, for which the technologies used are all in line with
the requirements of the "Guidelines for Feasible Technologies for Pollution Prevention and Control in Glass
Manufacturing Industry" and other documents. During 2021, the pollution control facilities were in good operation and
the pollutants were discharged stably up to the standard. The air pollutant emission concentrations of most of the
subsidiaries were lower than 50% of the emission standard and enjoyed the preferential policy of halving environmental
tax. The pollutant emissions of many subsidiaries reached and implemented local ultra-low emission standards.
Environmental self-monitoring scheme
The subsidiaries have built and operated on-line monitoring devices for waste water and exhaust gas in accordance with
national laws and regulations, environmental impact assessment documents of construction projects and the requirements
of their replies, regularly carried out comparison and review of the effectiveness of on-line monitoring facilities, and
entrusted a third-party unit to carry out manual environmental monitoring to comprehensively monitor the pollutant
discharge. The monitoring frequency is implemented in accordance with relevant monitoring technical guidelines or
pollutant discharge permits.
Emergency response plan system of environment incident
In accordance with the national requirements, all subsidiaries prepared emergency environmental response plan for
environment incident, organized and carried out expert evaluation and filed with the local environmental protection
department as required, and conducted the emergency drill against environmental incidents as planned. And there were
no major environmental incidents occurred in 2021.
Investment in environmental governance and protection and payment of environmental protection tax
CSG has always attached great importance to environmental protection work, actively fulfilled its social responsibilities,
and adhered to the development path of energy conservation, emission reduction, low carbon and environmental
protection. To reduce the generation of pollutants from the source, all glass kilns use natural gas as fuel, by which it is
the first enterprise in glass industry to use clean energy completely as fuel.
The subsidiaries have constructed pollution prevention and control facilities in accordance with the environmental impact
assessment documents of construction projects and relevant specifications, and put them into production and use at the
same time as the main works of the construction projects. In recent years, the Group has invested a lot of funds to improve
the level of environmental protection and pollution control. Since 2018, it has invested heavily in the construction of
desulfurization facilities and backup denitrification facilities every year, by which, the concentration and total amount of
pollutant emissions have further dropped significantly, many subsidiaries have reached and implemented local ultra-low
emission standards (particulate matter≤10mg/m3, NOX≤200mg/m3, SO2≤50mg/m3), and other subsidiaries' pollutant
emissions have been far lower than the national emission standards (particulate matter≤50mg/m3 , NOX≤700mg/m3,
SO2≤400mg/m3).
Enterprises involved in directly discharging pollutants into the environment have declared and paid environmental taxes
to the local tax authorities in full and on time.
Measures taken to reduce carbon emissions during the report period and their effects
√ Applicable □Not applicable
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CSG Annual Report 2021
The Company has continuously strengthened the comprehensive utilization and management of resources and energy.
The Group's Operation Department has specially established an energy management team to supervise the energy
consumption management of each subsidiary to ensure that the energy consumption per unit product of glass melting
furnace of the same tonnage and the same kiln age is always at the leading level in the industry. CSG has always focused
on energy-saving technology, system construction, publicity and training to promote the participation of all staff in energy
conservation and emission reduction, cost reduction and efficiency increase. In 2021, the energy consumption of the main
business units of the Group further decreased. The Company has established waste heat power stations and photovoltaic
power stations in production bases according to local conditions. In 2021, the self-generating capacity of waste heat power
generation and photovoltaic power generation of the Company has been close to 400 million kwh, equivalent to reducing
carbon dioxide emissions by more than 360,000 tons.
Administrative penalty imposed by environmental protection department
Nil
Other environmental information that should be disclosed
Nil
Environmental incidents in the listed company
Nil
II. Social Responsibility
2021 Annual Social Responsibilities Report of CSG is the 14th annual report released by the Company consecutively.
The report focusing on the year of 2021, systemically formulated the Company concrete actions of how to positively
perform the social responsibilities, and the efforts to implement the “Scientific Development Perspective”, building up a
harmonious society, and advancing the sustainable development of economy and society. See the full report on
www.cninfo.com.cn.
III.Consolidate and expand the achievements of poverty alleviation and Rural Revitalization
During the report period, the Company and its subsidiaries actively carried out social welfare and poverty alleviation
activities. For details, see the 2021 Annual Social Responsibilities Report of CSG disclosed on www.cninfo.com.cn.
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CSG Annual Report 2021
Section VI. Important Events
I. Implementation of commitment
1. Commitments completed by the actual controllers, the shareholders, the related parties, the purchasers,
the Company or the other related parties during the report period and those hadn’t been completed execution
by the end of the report period
√Applicable □ Not applicable
Type of Commitment Commitm Implementat
Commitments Promisee Content of commitments
commitments date ent term ion
The Company has
implemented share
merger reform in May
2006. Till June 2009, the
share of the original non-
tradable shareholders
which holding over 5%
total shares of the
Company had all
released. Therein, the
original non-tradable
shareholder Shenzhen
International Holdings
(SZ) Limited and Xin
Tong Chan Industrial
Development (Shenzhen)
Co., Ltd. both are By the end
The original non-
wholly-funded of the report
tradable shareholder
subsidiaries to Shenzhen period, the
Shenzhen
International Holdings above
International
Commitments Limited (hereinafter shareholders
Holdings (SZ) Commitment
for Shenzhen International of the
Limited and Xin of share 2006-5-22 N/A
Share Merger for short) listed in Hong Company
Tong Chan reduction
Reform Kong united stock had strictly
Industrial
exchange main board. carried out
Development
Shenzhen International their
(Shenzhen) Co.,
made commitment that it promises.
Ltd. Note 1
would strictly carry out
related regulations of
Securities Law,
Administration of the
Takeover of Listed
Companies Procedures
and Guiding Opinions on
the Listed Companies’
Transfer of Original
Shares Released from
Trading Restrictions
issued by CSRC during
implementing share
decreasingly-held plan
and take information
disclosure responsibility
timely.
- 64 -
CSG Annual Report 2021
Foresea Life Insurance
Co., Ltd., Shenzhen
Jushenghua Co., Ltd. and
Chengtai Group Co., Ltd.
issued detailed report of By the end
equity change on 29 June of the report
During the
Commitment 2015, in which, they period, the
period
Foresea Life of horizontal undertook to keep above
when
Insurance Co., Ltd, independent from CSG in shareholders
Commitments competition, Foresea
Shenzhen aspects of personnel, of the
in report of affiliate Life
Jushenghua Co., assets, finance, 2015-6-29 Company
acquisition or Transaction remains
Ltd.Note 2 and organization set-up and had strictly
equity change and the largest
Chengtai Group business as long as carried out
capital shareholde
Co., Ltd. Foresea Life Insurance their
occupation r of the
remained the largest promises.
Company
shareholder of CSG.
Meanwhile, they made
commitment on
regularizing related
transaction and avoiding
industry competition.
Commitments
in assets Not applicable
reorganization
Commitments
in initial
Not applicable
public offering
or re-financing
Equity
incentive Not applicable
commitment
Other
commitments
for medium Not applicable
and small
shareholders
Completed on
Yes
time(Yes/No)
If the
commitments
is not fulfilled
on time,
Not applicable
explain the
reasons and
the next work
plan
Note 1: Shenzhen International Holdings (SZ) Limited and Xin Tong Chan Industrial Development (Shenzhen) Co., Ltd.
reduced their total holdings of 39.1732 million shares of the Company from June 15, 2021 to July 12, 2021, accounting
for more than 1% of the total share capital of the Company. After this reduction, the above shareholders no longer held
the shares of the Company. In this reduction, the above shareholders complied with relevant regulations, timely fulfilled
the obligation of information disclosure and strictly fulfilled relevant commitments.
Note 2: Shenzhen Jushenghua Co., Ltd. transferred its 86,633,447 unrestricted tradable A shares of CSG Group to its
wholly-owned sub-subsidiary Zhongshan Runtian Investment Co., Ltd. through agreement transfer on March 16, 2020.
Zhongshan Runtian Investment Co., Ltd. is obliged to continue to fulfill the commitments made by Shenzhen Jushenghua
Co., Ltd. As of the end of the report period, the above-mentioned shareholders had strictly fulfilled the relevant
commitments.
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CSG Annual Report 2021
2. If there are assets or projects of the Company, which has profit forecast and the report period is still in
forecasting period, the Company should explain reasons why they reach the original profit forecast
□ Applicable √ Not applicable
II. Particulars about non-operating fund of listed company which is occupied by controlling
shareholder and its affiliated enterprises
□ Applicable √ Not applicable
III. Illegal external guarantee
□ Applicable √ Not applicable
The Company had no illegal external guarantee during the report period.
IV. Explanation from the Board of Directors for the latest “Non-standard audit report”
□ Applicable √ Not applicable
V. Explanation from Board of Directors, Supervisory Committee and Independent Directors
(if applicable) for “Non-standard audit report” of the period that issued by CPA
□ Applicable √ Not applicable
VI. Explanation of changes in accounting policies, accounting estimates or correction of
significant accounting errors compared with the financial report of the previous year
√Applicable □ Not applicable
The content and reason of accounting policy change Approval procedures
The Ministry of Finance issued the revised Accounting Standards for Business Enterprises
No. 21 - Leases in December 2018 (hereinafter referred to as the "New Lease Standards"),
which was implemented by the Group and the Company from January 1, 2021. For contracts
The 4th Meeting of the Ninth
existing before the first execution date, the Group and the Company chose not to reassess
Board of Directors held on
whether they were leases or including leases. The Group and the Company adjusted the
April 13, 2021deliberated
amount of retained earnings and other relevant items in the financial statements at the
and passed the Proposal on
beginning of the year of initial implementation according to the cumulative impact of initial
Accounting Policy Changes.
implementation, and did not adjust the information of comparable periods. The
implementation of the new lease standards was not expected to have a significant impact on
the financial statements.
VII. Description of changes in consolidation statement’s scope compared with the financial
report of last year
√Applicable □ Not applicable
On 19 April 2021, the Group set up a subsidiary, Xi'an CSG Energy Saving Glass Technology Co., Ltd. (referred to as
"Xi'an Energy Saving Company").As of 31 December 2021, the Group had invested RMB 1,000,000.The Group owns
100% of its equity.
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CSG Annual Report 2021
On 25 June 2021, the Group set up a subsidiary, Anhui CSG Silicon Valley Mingdu Mining Development Co., Ltd.
(referred to as "Anhui Silicon Valley Mingdu Mining Company").As of 31 December 2021, the Group had invested
RMB 3,000,000. The Group owns 60% of its equity.
On 9 October 2021, the Group set up a subsidiary, Guangxi CSG New Energy Materials Technology Co., Ltd. (referred
to as "Guangxi New Energy Materials Company").As of 31 December 2021, the Group had invested RMB 31,000,000.
The Group owns 100% of its equity.
On 4 November 2021, the Group set up a subsidiary, Qinghai CSG Sunrise New Energy Technology Co., Ltd. (referred
to as "Qinghai CSG New Energy").As of 31 December 2021, the Group had not invested yet. The Group owns 100% of
its equity.
On 8 December 2021, the Group set up a subsidiary, Hefei CSG Energy Saving Material Intelligent Manufacturing Co.,
Ltd. (referred to as "Hefei Energy Saving Company").As of 31 December 2021, the Group had not invested yet. The
Group owns 100% of its equity.
On 9 December 2021, the Group set up a subsidiary, Shenzhen CSG New Energy Industry Development Co., Ltd.
(referred to as "Shenzhen CSG New Energy").As of 31 December 2021, the Group had not invested yet. The Group owns
100% of its equity.
On 13 December 2021, the Group set up a subsidiary, Zhaoqing CSG New Energy Technology Co., Ltd. (referred to as
"Zhaoqing CSG New Energy"). As of 31 December 2021, the Group had not invested yet. The Group owns 100% of its
equity.
VIII. Engaging and dismissing of CPA firm
CPA firm engaged
Name of domestic CPA firm Asia Pacific (Group) CPAs (special general partnership)
Remuneration for domestic CPA firm (RMB 0,000) 300
Continuous life of auditing service for domestic CPA firm 4
Name of domestic CPA Zhou Xianhong, Wu Yiluo
Continuous life of auditing service for domestic CPA Zhou Xianhong (4 years), Wu Yiluo (1 year)
Whether changed accounting firms in this period or not
□ Yes √No
Appointment of internal control auditing accounting firm, financial consultant or sponsor
√Applicable □ Not applicable
Asia Pacific (Group) CPAs (special general partnership) was engaged as audit institute of internal control for the Company
in the report period, and contracted charges was RMB 0.30 million (cost of business trips and accommodation at its own
expense).
IX. Delisting after the disclosure of the annual report
□ Applicable √ Not applicable
- 67 -
CSG Annual Report 2021
X. Issues related to bankruptcy and reorganization
□ Applicable √ Not applicable
XI. Significant lawsuits and arbitrations
□ Applicable √ Not applicable
XII. Penalty and rectification
□ Applicable √ Not applicable
XIII. Integrity of the Company and its controlling shareholders and actual controllers
□ Applicable √ Not applicable
XIV. Major related transaction
1. Related transaction with routine operation concerned
□ Applicable √ Not applicable
2. Related transaction with acquisition of assets or equity, sales of assets or equity concerned
□ Applicable √ Not applicable
3. Related transaction with jointly external investment concerned
□ Applicable √ Not applicable
4. Credits and liabilities with related parties
□ Applicable √ Not applicable
5. Transactions with related financial companies
□ Applicable √ Not applicable
6. Transactions between financial companies controlled by the company and related parties
□ Applicable √ Not applicable
7. Other major related transaction
□ Applicable √ Not applicable
- 68 -
CSG Annual Report 2021
XV. Significant contracts and their implementation
1. Trusteeship, contracting and leasing
(1) Trusteeship
□ Applicable √ Not applicable
(2) Contract
□ Applicable √ Not applicable
(3) Leasing
□ Applicable √ Not applicable
2. Major guarantees
√Applicable □ Not applicable
Unit: RMB 0,000
External guarantee of the Company and its subsidiaries(barring the guarantee for subsidiaries)
Actual date of Guarantee
Related Actual Guarantee Complete
Name of the Company Guarantee happening (Date Guarante for related
Announcement guarantee type implementation
guaranteed limit of signing e term party (Yes
disclosure date limit or not
agreement) or no)
Total amount of approving external Total amount of actual occurred external
0 0
guarantee in report period (A1) guarantee in report period (A2)
Total amount of approved external Total balance of actual external
guarantee at the end of report period 0 guarantee at the end of report period 0
(A3) (A4)
Guarantee of the Company for the subsidiaries
Actual date of Guarantee
Related Actual Guarantee Complete
Name of the Company Guarantee happening (Date Guarante for related
Announcement guarantee type implementation
guaranteed limit of signing e term party (Yes
disclosure date limit or not
agreement) or no)
Xianning CSG Photovoltaic Joint liability
2016/08/16 30,000 2017/01/03 7,630 5 years Yes No
Glass Co., Ltd. guarantee
Xianning CSG Photovoltaic Joint liability
2020/12/05 3,000 2021/02/07 2,603 1 year No No
Glass Co., Ltd. guarantee
Xianning CSG Photovoltaic Joint liability
2020/12/19 5,000 2021/03/22 4,500 1 year No No
Glass Co., Ltd. guarantee
Xianning CSG Energy-Saving Joint liability
2020/04/30 3,000 2020/07/10 2,000 1 year Yes No
Glass Co., Ltd. guarantee
Xianning CSG Energy-Saving Joint liability
2021/02/19 5,000 2021/09/24 1,500 1 year No No
Glass Co., Ltd. guarantee
Yichang Nanbo Photoelectric Joint liability
2021/02/19 1,824 2021/03/19 1,200 1 year No No
Glass Co., Ltd. guarantee
Yichang Nanbo Photoelectric Joint liability
2021/08/10 1,824 2021/12/17 1 year No No
Glass Co., Ltd. guarantee
Dongguan CSG PV-tech Co., Joint liability
2021/08/10 3,000 2021/11/29 1 year No No
Ltd. guarantee
Dongguan CSG PV-tech Co., Joint liability
2021/08/10 10,000 2021/08/13 4,077 1 year No No
Ltd. guarantee
Dongguan CSG PV-tech Co., Joint liability
2020/03/06 5,500 2020/04/14 2,000 1 year Yes No
Ltd. guarantee
Joint liability
Hebei Panel Glass Co., Ltd. 2021/02/19 3,000 1 year No No
guarantee
Joint liability
Hebei Panel Glass Co., Ltd. 2021/10/30 16,500 2021/12/17 318 5 years No No
guarantee
Joint liability
Hebei CSG Glass Co., Ltd. 2021/02/19 5,000 1 year No No
guarantee
- 69 -
CSG Annual Report 2021
Dongguan CSG Architectural Joint liability
2021/06/29 5,000 2021/09/13 2 years No No
Glass Co., Ltd. guarantee
Joint liability
Xianning CSG Glass Co., Ltd. 2020/12/05 4,000 2021/02/08 2,000 1 year No No
guarantee
Joint liability
Xianning CSG Glass Co., Ltd. 2021/12/25 15,000 7 years No No
guarantee
Joint liability
Xianning CSG Glass Co., Ltd. 2021/12/25 50,000 7 years No No
guarantee
Joint liability
Xianning CSG Glass Co., Ltd. 2021/06/29 20,000 2021/07/07 20,000 5 years No No
guarantee
Joint liability
Chengdu CSG Glass Co., Ltd. 2020/08/24 5,000 2020/08/24 4,500 1 year Yes No
guarantee
Joint liability
Chengdu CSG Glass Co., Ltd. 2021/12/25 5,000 1 year No No
guarantee
Joint liability
Chengdu CSG Glass Co., Ltd. 2021/02/19 5,000 2021/03/08 1 year No No
guarantee
Sichuan CSG Energy Joint liability
2020/08/24 5,000 2020/08/24 4,500 1 year Yes No
Conservation Glass Co., Ltd. guarantee
Sichuan CSG Energy Joint liability
2021/12/25 8,000 1 year No No
Conservation Glass Co., Ltd. guarantee
Sichuan CSG Energy Joint liability
2021/02/19 5,000 2021/03/09 5,000 1 year No No
Conservation Glass Co., Ltd. guarantee
Sichuan CSG Energy Joint liability
2021/06/08 5,000 2021/08/24 1 year No No
Conservation Glass Co., Ltd. guarantee
Joint liability
Wujiang CSG Glass Co., Ltd. 2021/02/19 10,000 2021/03/12 4,372 4 years No No
guarantee
Joint liability
Wujiang CSG Glass Co., Ltd. 2021/02/19 10,000 2021/03/19 780 1 year No No
guarantee
Joint liability
Wujiang CSG Glass Co., Ltd. 2021/12/25 10,000 2022/02/17 747 1 year No No
guarantee
Joint liability
Wujiang CSG Glass Co., Ltd. 2021/02/19 5,000 2021/03/08 1 year No No
guarantee
Joint liability
Wujiang CSG Glass Co., Ltd. 2021/06/08 5,000 2021/09/26 1 year No No
guarantee
Joint liability
Wujiang CSG Glass Co., Ltd. 2021/02/19 10,000 2021/03/26 1 year No No
guarantee
Dongguan CSG Architectural Joint liability
2020/06/24 6,000 2020/08/18 2,000 1 year Yes No
Glass Co., Ltd. guarantee
Dongguan CSG Architectural Joint liability
2021/10/30 10,000 2021/05/18 1,631 1 year No No
Glass Co., Ltd. guarantee
Dongguan CSG Architectural Joint liability
2021/02/19 10,000 2021/02/19 2,070 1 year No No
Glass Co., Ltd. guarantee
Wujiang CSG East China Joint liability
2020/12/05 10,000 2020/12/09 1 year No No
Architectural Glass Co., Ltd. guarantee
Wujiang CSG East China Joint liability
2021/02/19 7,000 2021/03/01 2,000 1 year No No
Architectural Glass Co., Ltd. guarantee
Wujiang CSG East China Joint liability
2021/02/19 12,400 2021/05/19 2,572 5 years No No
Architectural Glass Co., Ltd. guarantee
Wujiang CSG East China Joint liability
2021/12/25 3,000 2 years No No
Architectural Glass Co., Ltd. guarantee
Dongguan CSG Solar Glass Co., Joint liability
2021/08/10 10,000 2021/09/13 6,901 1 year No No
Ltd. guarantee
Dongguan CSG Solar Glass Co., Joint liability
2021/02/19 5,000 2021/03/08 1 year No No
Ltd. guarantee
Dongguan CSG Solar Glass Co., Joint liability
2021/02/19 7,132 2021/03/01 1 year No No
Ltd. guarantee
Dongguan CSG Solar Glass Co., Joint liability
2020/09/22 4,500 2020/11/11 919 3 years Yes No
Ltd. guarantee
Dongguan CSG Solar Glass Co., Joint liability
2021/10/30 20,000 2020/12/25 2,000 1 year No No
Ltd. guarantee
Dongguan CSG Solar Glass Co., Joint liability
2021/06/08 6,460 2021/07/07 1 year No No
Ltd. guarantee
Dongguan CSG Solar Glass Co., Joint liability
2020/04/30 5,000 2020/05/18 1 year No No
Ltd. guarantee
Qingyuan CSG New Energy- Joint liability
2021/06/08 4,330 2021/08/25 1,425 1 year No No
Saving Materials Co., Ltd. guarantee
Qingyuan CSG New Energy- Joint liability
2021/08/10 4,500 2021/09/07 1 year No No
Saving Materials Co., Ltd. guarantee
Qingyuan CSG New Energy- Joint liability
2021/08/10 10,000 2021/08/31 1 year No No
Saving Materials Co., Ltd. guarantee
Qingyuan CSG New Energy- Joint liability
2021/12/25 5,000 1 year No No
Saving Materials Co., Ltd. guarantee
- 70 -
CSG Annual Report 2021
Qingyuan CSG New Energy- Joint liability
2019/12/10 50,000 2020/04/26 13,505 5 years No No
Saving Materials Co., Ltd. guarantee
Qingyuan CSG New Energy- Joint liability
2019/12/10 5,000 2020/04/26 1 year No No
Saving Materials Co., Ltd. guarantee
Joint liability
Yichang CSG Display Co., Ltd. 2020/05/23 3,040 2020/06/22 2,800 1 year Yes No
guarantee
Joint liability
Yichang CSG Display Co., Ltd. 2021/10/30 3,000 2021/12/01 1 year No No
guarantee
Joint liability
Yichang CSG Display Co., Ltd. 2020/05/23 3,040 2020/05/29 3,000 1 year Yes No
guarantee
Tianjin CSG Energy-Saving Joint liability
2021/06/08 3,000 2021/07/14 1 year No No
Glass Co., Ltd. guarantee
Tianjin CSG Energy-Saving Joint liability
2021/02/19 5,000 2021/03/30 3,987 1 year No No
Glass Co., Ltd. guarantee
Tianjin CSG Energy-Saving Joint liability
2021/02/19 7,000 2021/03/23 6,464 4 years No No
Glass Co., Ltd. guarantee
Tianjin CSG Energy-Saving Joint liability
2021/06/29 2,000 2021/11/26 82 1 year No No
Glass Co., Ltd. guarantee
Anhui CSG New Energy Joint liability
2021/08/10 70,000 2021/10/19 8,319 6 years No No
Material Technology Co., Ltd. guarantee
Anhui CSG New Energy Joint liability
2021/08/10 180,000 2021/08/28 25,800 7 years No No
Material Technology Co., Ltd. guarantee
Anhui CSG New Energy Joint liability
2021/12/25 50,000 9 years No No
Material Technology Co., Ltd. guarantee
Anhui CSG New Quartz Material Joint liability
2021/06/29 9,000 2021/09/13 3,230 5 years No No
Co., Ltd guarantee
Zhaoqing CSG Energy-Saving Joint liability
2020/09/22 34,000 2020/09/25 18,446 5 years No No
Glass Co., Ltd. guarantee
China Southern Glass (Hong Joint liability
2020/02/25 2020/04/04 6,312 1 year Yes No
Kong) Limited guarantee
Dongguan CSG Architectural Joint liability
2021/06/29 2021/07/01 656 1 year No No
Glass Co., Ltd. guarantee
Dongguan CSG Solar Glass Co., Joint liability
2021/06/29 2021/07/01 1 year No No
Ltd. guarantee
Dongguan CSG PV-tech Co., Joint liability
2021/06/29 2021/07/01 661 1 year No No
Ltd. guarantee
Qingyuan CSG New Energy- Joint liability
2021/06/29 2021/07/01 291 1 year No No
Saving Materials Co., Ltd. guarantee
Anhui CSG New Energy Joint liability
2021/02/19 2021/04/12 19,371 1 year No No
Material Technology Co., Ltd. guarantee
Joint liability
Wujiang CSG Glass Co., Ltd. 2021/02/19 2021/03/26 253 1 year No No
guarantee
Joint liability
Chengdu CSG Glass Co., Ltd. 2021/06/29 2021/07/01 1 year No No
guarantee
Sichuan CSG Energy Joint liability
2021/06/29 48,000 2021/07/01 312 1 year No No
Conservation Glass Co., Ltd. guarantee
Joint liability
Xianning CSG Glass Co., Ltd. 2021/06/09 2021/07/01 1 year No No
guarantee
Xianning CSG Energy-Saving Joint liability
2021/06/09 2021/07/01 302 1 year No No
Glass Co., Ltd. guarantee
Wujiang CSG East China Joint liability
2021/06/29 2021/07/01 539 1 year No No
Architectural Glass Co., Ltd. guarantee
Tianjin CSG Energy-Saving Joint liability
2021/06/29 2021/07/01 950 1 year No No
Glass Co., Ltd. guarantee
Joint liability
Hebei Panel Glass Co., Ltd. 2020/06/24 1 year No No
guarantee
Dongguan CSG Jingyu New Joint liability
2020/02/25 1 year No No
Material Co., Ltd. guarantee
Xianning CSG Photovoltaic Joint liability
2020/02/25 2020/06/24 500 1 year Yes No
Glass Co., Ltd. guarantee
Zhaoqing CSG Energy-Saving Joint liability
2021/06/29 1 year No No
Glass Co., Ltd. guarantee
Total amount of actual occurred
Total amount of approving guarantee for
705,970 guarantee for subsidiaries in report 134,084
subsidiaries in report period (B1)
period (B2)
Total amount of approved guarantee for Total balance of actual guarantee for
subsidiaries at the end of reporting 801,970 subsidiaries at the end of reporting 168,864
period (B3) period (B4)
Guarantee situation of subsidiaries to subsidiaries
Actual date of Guarantee
Related Actual Guarantee Complete
Name of the Company Guarantee happening (Date Guarante for related
Announcement guarantee type implementation
guaranteed limit of signing e term party (Yes
disclosure date limit or not
agreement) or no)
- 71 -
CSG Annual Report 2021
Total amount of actual occurred
Total amount of approving guarantee for
0 guarantee for subsidiaries in report 0
subsidiaries in report period (C1)
period (C2)
Total amount of approved guarantee for Total balance of actual guarantee for
subsidiaries at the end of reporting 0 subsidiaries at the end of reporting 0
period (C3) period (C4)
Total amount of guarantee of the Company( total of three abovementioned guarantee)
Total amount of approving guarantee in Total amount of actual occurred
705,970 134,084
report period (A1+B1+C1) guarantee in report period (A2+B2+C2)
Total amount of approved guarantee at Total balance of actual guarantee at the
801,970 168,864
the end of report period (A3+B3+C3) end of report period (A4+B4+C4)
The proportion of the total amount of actual guarantee in the net
14.77%
assets of the Company(that is A4+ B4+C4)
Including:
Amount of guarantee for shareholders, actual controller and its
0
related parties(D)
The debts guarantee amount provided for the guaranteed parties
0
whose assets-liability ratio exceed 70% directly or indirectly(E)
Proportion of total amount of guarantee in net assets of the
0
Company exceed 50%(F)
Total amount of the aforesaid three guarantees(D+E+F) 0
For the guarantee contract not yet due, guarantee responsibility
incurred in the reporting period or there is evidence showing the N/A
description of the possible related discharge duty (if any)
Explanations on external guarantee against regulated procedures(if
N/A
any）
Note: The Company carried out a "Bill Pool" business of 300 million yuan. The Company and its holding subsidiaries
could adopt various guarantee methods such as maximum pledge, general pledge, deposit certificate pledge, bill pledge,
and margin pledge for the establishment and use of the bill pool.
The Company held an extraordinary meeting of the Ninth Board of Directors on August 9, 2021, and held the Third
Extraordinary General Meeting of Shareholders in 2021 on August 25, 2021 to deliberate and approve the "Proposal on
Guarantee Matters", by which it agreed to provide irrevocable joint liability guarantee for Anhui CSG New Energy
Materials Technology Co., Ltd. to apply for comprehensive credit to business related parties (including but not limited to
banks and other financial institutions and other business partners), with an estimated guarantee amount not exceeding
RMB 2.6 billion. As of December 31, 2021, the Company and China Merchants Bank Co., Ltd. Shenzhen Branch signed
the "Maximum Irrevocable Guarantee Letter" to provide the subsidiary Anhui CSG New Energy Materials Technology
Co., Ltd. with a maximum amount not exceeding the equivalent of RMB 1.8 billion. The Company signed the "Guarantee
Contract" with Bank of China Co., Ltd. Chuzhou Branch to provide the subsidiary Anhui CSG New Energy Materials
Technology Co., Ltd. with a maximum amount of financing credit guarantee not exceeding the equivalent of RMB 700
million.
Description of the guarantee with complex method
Nil
3. Entrust others to manage cash assets
(1)Entrusted Financing
√ Applicable □ Not applicable
Overview of entrusted financing during the report period
Unit: RMB 0,000
Amount of
Amount not impairment accrued
Source of funds for Amount of Outstanding
Type collected after for overdue
entrusted financing entrusted financing balance
the due date uncollected entrusted
financing
Structured deposit Own funds 100,000 99,960 0 0
- 72 -
CSG Annual Report 2021
Total 100,000 99,960 0 0
Details of high-risk entrusted financing with significant single amount or low security and poor liquidity
□Applicable √ Not applicable
Entrusted financing expected to be unable to recover the principal or other circumstances that may lead to impairment
□Applicable √ Not applicable
(2) Entrusted loans
□Applicable √ Not applicable
The Company had no entrusted loans in the report period.
4. Other material contracts
□ Applicable √ Not applicable
XVI. Statement on other important matters
√Applicable □ Not applicable
1. Ultra-short-term financing bills
On June 15, 2020, the Company the third extraordinary general meeting of shareholders 2020 deliberated and approved
the proposal on application for registration and issuance of ultra-short-term financing bills and medium-term notes, which
agreed that the Company should register and issue ultra-short-term financing bills with a registered amount not exceeding
1.5 billion yuan (the limit is not subject to the limit of 40% of net assets).With the period of validity of the quota not
longer than two years, such ultra-short-term financing bills will be issued by installments in accordance with the actual
capital needs of the Company and the situation of inter-bank market funds. On September 4, 2020, the NAFMII held its
102nd registration meeting in 2020 and decided to accept the registration of ultra-short-term financing bills with a total
of 1.5 billion yuan and a validity period of two years.
2. Medium-term notes
On April 15, 2016, the Shareholders’ General Meeting of 2015 of CSG deliberated and approved the proposal of
application for registration and issuance of medium-term notes with total amount of RMB 0.8 billion, which could be
issued by stages within period of validity of the registration according to the Company’s actual demands for funds and
the status of inter-bank funds. On 2 March 2018, National Association of Financial Market Institutional Investors
(NAFMII) held the 14th registration meeting of 2018, in which NAFMII decided to accept the registration of the
Company’s medium-term notes, amounting to RMB 0.8 billion and valid for two years. Shanghai Pudong Development
Bank Co., Ltd. and China CITIC Bank Corporation Limited were joint lead underwriters of these medium-term notes
which could be issued by stages within period of validity of the registration. On May 4, 2018, the company issued the
first medium-term notes with a total amount of 800 million yuan and a term of three years. The issue rate was 7%, and
the redemption date was May 4, 2021.
On June 15, 2020, the Third Extraordinary Shareholders’ General Meeting 2020 of CSG deliberated and approved the
proposal on application for registration and issuance of ultra-short-term financing bills and medium-term notes, which
agreed that the Company should register and issue medium-term notes with a registered amount not exceeding 1.5 billion
yuan. With the period of validity of the quota not longer than two years, such ultra-short-term financing bills will be
issued by installments in accordance with the actual capital needs of the Company and the situation of inter-bank market
- 73 -
CSG Annual Report 2021
funds. On September 4, 2020, the NAFMII held the 102nd registration meeting in 2020 and decided to accept the
company's registration of medium-term notes with a total of 1.5 billion yuan and a validity period of two years.
3 .Public issuance of corporate bonds
On March 2, 2017, the 2nd Extraordinary General Meeting of Shareholders in 2017 reviewed and approved “the Proposal
on the Public Issuance of Corporate Bonds for Qualified Investors". On February 27, 2019, the First Extraordinary General
Meeting of Shareholders in 2019 The “Proposal on Extending the Validity Period of the Shareholders' Meeting for the
Public Offering of Corporate Bonds to Qualified Investors” agreed to issue corporate bonds with a total issue of no more
than RMB 2 billion and a term of no more than 10 years. On June 26, 2019, the Company received the “Approval of
Approving CSG Holding Co., Ltd. to Issue Corporate Bonds to Qualified Investors” issued by China Securities Regulatory
Commission (ZJXK [2019] No. 1140). On March 24, 2020 and March 25, 2020, the Company issued the first batch of
corporate bonds with total amount of RMB 2 billion and valid term of 3 years at the issuance rate of 6%, which will be
redeemed on March 25, 2023 (for details, please refer to "Section IX Bonds").
On March 12, 2020, the First Extraordinary General Meeting of Shareholders in 2020 reviewed and approved “the
Proposal on the Public Issuance of Corporate Bonds for Qualified Investors", agreed to issue corporate bonds with a total
issue of no more than RMB 1.8 billion and a term of no more than 10 years. On April 22, 2020, the Company received
the “Approval of Approving CSG Holding Co., Ltd. to Issue Corporate Bonds to Qualified Investors” issued by China
Securities Regulatory Commission (ZJXK[2020] No. 784).
4. Non-public issuance of A shares
The interim meeting of the 8th board of directors of the Company held on March 5, 2020 deliberated and approved the
related proposals of non-public issuance of A shares, and agreed the Company to issue A shares privately. The proposals
were deliberated and approved by the 2nd Extraordinary General Meeting of Shareholders of 2020 which held on April
16, 2020. In May 2020, the Company received the first feedback notice on the examination of administrative licensing
projects of China Securities Regulatory Commission (No. 200819) issued by the China Securities Regulatory Commission,
and published “Announcement on Reply to the Feedback of Application Documents For Non-public Offering of A shares”
and “Announcement on the Revised Reply to the Feedback of Application Documents For Non-public Offering of A
shares” on June 8, 2020 and June 29, 2020respectively. On June 5, 2020, the Company held an interim meeting of the 9th
board of directors, deliberated and approved the relevant proposals on adjusting the Company's non-public issuance of A
shares. On July 6, 2020, the Issuance Audit Committee of China Securities Regulatory Commission reviewed the
Company's application for non-public issuance of A shares. According to the audit results, the Company's application for
non-public issuance of A shares was approved. On July 22, 2020, the Company received the “Reply on the Approval of
Non-public Issuance of Shares of CSG” (ZJXK [2020] No. 1491) issued by China Securities Regulatory Commission.
After obtaining the approval, the Company actively worked with intermediaries to promote various work concerning the
non-public issuance of A shares. However, in view of changes in many factors such as the capital market environment,
industrial development, the Company’s market value performance and the timing of equity financing, the Company did
not implement this non-public issuance of A shares within the validity period of the approval document. The approval for
the non-public issuance of A shares expired automatically. For details, please refer to the "Announcement on the
Expiration of the Approval for the Non-public Issuance of A Shares" (Announcement No.: 2021-034) disclosed by the
Company on July 15, 2021.
For details, please refer to Juchao website (www.cninfo.com.cn).
XVII. Significant events of subsidiaries of the Company
□ Applicable √ Not applicable
- 74 -
CSG Annual Report 2021
Section VII. Changes in Shares and Particulars about
Shareholders
I. Changes in Share Capital
1. Changes in Share Capital
Unit: Share
Before the Change Increase/Decrease in the Change (+, -) After the Change
New Capitalizatio
Proporti Bonus Proportion
Amount shares n of public Others Subtotal Amount
on (%) shares (%)
issued reserve
I. Restricted shares 3,323,978 0.11% 1,412,818 1,412,818 4,736,796 0.15%
1. State-owned
shares
2. State-owned legal
person’s shares
3. Other domestic
3,323,978 0.11% 1,412,818 1,412,818 4,736,796 0.15%
shares
Including: Domestic
legal person’s shares
Domestic
natural person’s 3,323,978 0.11% 1,412,818 1,412,818 4,736,796 0.15%
shares
4. Foreign shares
Including: Foreign
legal person’s shares
Foreign natural
person’s shares
II. Unrestricted
3,067,368,129 99.89% -1,412,818 -1,412,818 3,065,955,311 99.85%
shares
1. RMB Ordinary
1,957,999,069 63.76% -1,412,818 -1,412,818 1,956,586,251 63.72%
shares
2. Domestically
1,109,369,060 36.13% 1,109,369,060 36.13%
listed foreign shares
3. Overseas listed
foreign shares
4. Others
III. Total shares 3,070,692,107 100% 3,070,692,107 100%
Reason for equity changes
√Applicable □Not applicable
During the report period, China Securities Depository and Clearing Corporation Limited adjusted the locked-up shares of
senior management in accordance with regulations, and the Company’s restricted shares and unrestricted shares changed
accordingly.
Approval on equity changes
□Applicable √Not applicable
Transfer of ownership of changes in shares
□Applicable √Not applicable
- 75 -
CSG Annual Report 2021
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to
common shareholders of Company in the latest year and period
□Applicable √Not applicable
Other information necessary to be disclosed or need to be disclosed under requirement from security regulators
□Applicable √ Not applicable
2. Changes of restricted shares
√Applicable □ Not applicable
Unit: Share
Number
Number of Number of
Number of of
restricted shares
shares restricted
Shareholders’ shares at the restricted
increased shares Reason for restriction Released date
name beginning of at the end
in the released
the of the
Period in the
period(Note 1) Period
Period
Executive lockup Releasing of executive lockup
Chen Lin 912,974 304,325 1,217,299 stocks of 1,217,299 stocks will be implemented
shares according to relevant policies.
Executive lockup Releasing of executive lockup
Wang Jian 569,250 189,750 759,000 stocks of 759,000 stocks will be implemented
shares according to relevant policies.
Executive lockup Releasing of executive lockup
He Jin 504,900 168,300 673,200 stocks of 673,200 stocks will be implemented
shares according to relevant policies.
Executive lockup Releasing of executive lockup
Yang Xinyu 652,124 217,375 869,499 stocks of 869,499 stocks will be implemented
shares according to relevant policies.
Lockup stocks of Releasing of executive lockup
Lu Wenhui 684,730 532,568 1,217,298 1,217,298 shares for stocks will be implemented
executive resignation according to relevant policies.
Lockup stocks of 500 Releasing of executive lockup
Gao Changkun 0 500 500 shares for supervisor stocks will be implemented
resignation according to relevant policies.
Total 3,323,978 1,412,818 4, 736,796 -- --
Note: The change in restricted shares during the reporting period was caused by China Securities Depository and Clearing
Corporation Limited's adjustment of the locked-up shares of senior executives in accordance with regulations.
II. Issuance and listing of Securities
1. Security issued (excluding preferred stock) in the report period
□Applicable √Not applicable
2. Particulars about changes of total shares and shareholder structure as well as changes of assets and liability
structure
□ Applicable √ Not applicable
- 76 -
CSG Annual Report 2021
3. Existing internal staff shares
□ Applicable √ Not applicable
III. Particulars about shareholder and actual controller of the Company
1. Amount of shareholders of the Company and particulars about shares holding
Unit: Share
Total preference
Total preference shareholders with
Total shareholders at
Total shareholders at shareholders with voting voting rights recovered
the end of the month
the end of the report 149,796 157,188 rights recovered at end of 0 at end of the month 0
before this annual
period report period (if before this annual
report disclosed
applicable) report disclosed (if
applicable)
Shareholder with above 5% shares hold or top 10 shareholders
Full name of Shareholders Nature of Proportion Total shares Changes in Amou Amount of Number of share
shareholder of shares held at the report period nt of un-restricted pledged, marked or
held (%) end of report restrict shares held frozen
period ed Share Amount
shares status
held
Domestic non
Foresea Life Insurance Co., Ltd.
state-owned 15.19% 466,386,874 466,386,874
– HailiNiannian
legal person
Domestic non
Foresea Life Insurance Co., Ltd.
state-owned 3.86% 118,425,007 118,425,007
– Universal Insurance Products
legal person
Domestic non Pledged 86,630,000
Zhongshan Runtian Investment
state-owned 2.82% 86,633,447 86,633,447 Marked 86,630,000
Co., Ltd.
legal person Frozen 3,447
Bank of China Limited - China Domestic non
Merchants Ruiwen hybrid state-owned 2.72% 83,514,806 83,514,806 83,514,806
securities investment fund legal person
Domestic non
Foresea Life Insurance Co., Ltd.
state-owned 2.11% 64,765,161 64,765,161
– Own Fund
legal person
Hong Kong Securities Clearing Foreign legal
1.85% 56,676,295 -27,616,352 56,676,295
Co., Ltd. person
China Merchants Securities State-owned
1.38% 42,368,988 7,125,358 42,368,988
(HK) Co., Limited legal person
China Galaxy International
Foreign legal
Securities (Hong Kong) Co., 1.34% 41,219,778 -130,000 41,219,778
person
Limited
China Life Insurance Co., Ltd. - Domestic non
traditional - General insurance state-owned 0.97% 29,836,268 29,836,268 29,836,268
products - 005l-ct001 Shen legal person
MORGAN STANLEY &
Foreign legal
CO. INTERNATIONAL person
0.85% 25,979,236 25,979,236 25,979,236
PLC
Strategic investors or general legal N/A
person becomes top 10 shareholders
due to shares issued (if applicable)
Explanation on associated Among shareholders as listed above, Foresea Life Insurance Co., Ltd.-HailiNiannian, Foresea
relationship among the aforesaid Life Insurance Co., Ltd.-Universal Insurance Products, Foresea Life Insurance Co., Ltd.-Own
shareholders Fund are all held by Foresea Life Insurance Co., Ltd. Shenzhen Jushenghua Co., Ltd. is a related
legal person of Foresea Life Insurance Co., Ltd. and Chengtai Group Co., Ltd., another related
legal person of Foresea Life Insurance Co., Ltd, which held 40,187,904 shares via China Galaxy
International Securities (Hong Kong) Co., Limited.
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CSG Annual Report 2021
Except for the above-mentioned shareholders, it is unknown whether other shareholders belong
to related party or have associated relationship regulated by the Management Regulation of
Information Disclosure on Change of Shareholding for Listed Companies.
Explanation of the above-mentioned
shareholders involving
entrusted/entrusted voting rights and
abstention from voting right
Special instructions on the existence N/A
of special repurchase account
among the top 10 shareholders (if
any)
Particular about top ten shareholders with un-restrict shares held
Amount of un-restrict Type of shares
Shareholders’ name shares held at year-
Type Amount
end
Foresea Life Insurance Co., Ltd. – HailiNiannian 466,386,874 RMB ordinary shares 466,386,874
Foresea Life Insurance Co., Ltd. – Universal Insurance
118,425,007 RMB ordinary shares 118,425,007
Products
Zhongshan Runtian Investment Co., Ltd. 86,633,447 RMB ordinary shares 86,633,447
Bank of China Limited - China Merchants Ruiwen hybrid
83,514,806 RMB ordinary shares 83,514,806
securities investment fund
Foresea Life Insurance Co., Ltd. – Own Fund 64,765,161 RMB ordinary shares 64,765,161
Hong Kong Securities Clearing Co., Ltd. 56,676,295 RMB ordinary shares 56,676,295
Domestically listed
China Merchants Securities (HK) Co., Limited 42,368,988 42,368,988
foreign shares
China Galaxy International Securities (Hong Kong) Co., Domestically listed
41,219,778 41,219,778
Limited foreign shares
China Life Insurance Co., Ltd. - traditional - General insurance
29,836,268 RMB ordinary shares 29,836,268
products - 005l-ct001 Shen
Domestically listed
MORGAN STANLEY & CO. INTERNATIONAL PLC 25,979,236
foreign shares
25,979,236
Among shareholders as listed above, Foresea Life Insurance Co., Ltd.-HailiNiannian, Foresea
Life Insurance Co., Ltd.-Universal Insurance Products, Foresea Life Insurance Co., Ltd.-Own
Fund are all held by Foresea Life Insurance Co., Ltd. Shenzhen Jushenghua Co., Ltd. is a related
Statement on associated legal person of Foresea Life Insurance Co., Ltd. and Chengtai Group Co., Ltd., another related
relationship or consistent action legal person of Foresea Life Insurance Co., Ltd, which held 40,187,904 shares via China Galaxy
among the above shareholders: International Securities (Hong Kong) Co., Limited.
Except for the above-mentioned shareholders, it is unknown whether other shareholders belong
to related party or have associated relationship regulated by the Management Regulation of
Information Disclosure on Change of Shareholding for Listed Companies.
Explanation on shareholders
involving margin business (if N/A
applicable)
Whether the company’s top 10 common shareholders and the top 10 shareholders of ordinary shares subject to unlimited
sales have agreed to buy back transactions during the report period
□Yes √ No
2. Controlling shareholder of the Company
The nature of controlling shareholders: No holding body
The type of controlling shareholder: Not exist
Explanation on the Company without controlling shareholder
Currently the Company has no controlling shareholder. Foresea Life Insurance Co., Ltd.is the Company's largest
shareholder that has totally held 657,577,954shares of the Company via Foresea Life Insurance Co., Ltd.–HailiNiannian,
Foresea Life Insurance Co., Ltd.–universal insurance products, Foresea Life Insurance Co., Ltd.–own fund, Foresea Life
Insurance Co., Ltd.–a combination of its own funds together with Huatai till the end of the report period, which accounts
for 21.41% of the Company’s total shares; its person acting in concert Zhongshan Runtian Investment Co., Ltd. held
86,633,447 shares, which accounts for 2.82% of the Company’s total shares; its person acting in concert Chengtai Group
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CSG Annual Report 2021
Co., Ltd. held 51,709,088 shares of B-share via China Galaxy International Securities (Hong Kong) Co., Ltd and Guosen
Securities (Hong Kong) Brokerage Co., Limited, which accounts for 1.68% of the Company’s total shares. Foresea Life
Insurance and its persons acting in concert totally held 25.92% of the Company’s total shares, which is less than 30%,
meanwhile, the number of directors recommended by Foresea Life Insurance and its persons acting in concert was no
more than half of total number of the Company’s Board of Directors.
Other shareholders of the Company hold less than 5% of the shares.
Changes of controlling shareholders in the report period
□ Applicable √ Not applicable
3. Actual controller of the Company
The nature of actual controller: no actual controller
The type of actual controller: Not exist
Explanation on the Company without actual controller
Currently the Company has no controlling shareholder. Foresea Life Insurance Co., Ltd. is the Company's largest
shareholder that has totally held 657,577,954shares of the Company via Foresea Life Insurance Co., Ltd.–HailiNiannian,
Foresea Life Insurance Co., Ltd.–universal insurance products, Foresea Life Insurance Co., Ltd.–own fund, Foresea Life
Insurance Co., Ltd.–a combination of its own funds together with Huatai till the end of the report period, which accounts
for 21.41% of the Company’s total shares; its person acting in concert Zhongshan Runtian Investment Co., Ltd. held
86,633,447 shares, which accounts for 2.82% of the Company’s total shares; its person acting in concert Chengtai Group
Co., Ltd. held 51,709,088 shares of B-share via China Galaxy International Securities (Hong Kong) Co., Ltd and Guosen
Securities (Hong Kong) Brokerage Co., Limited, which accounts for 1.68% of the Company’s total shares. Foresea Life
Insurance and its persons acting in concert totally held 25.92% of the Company’s total shares, which is less than 30%,
meanwhile, the number of directors recommended by Foresea Life Insurance and its persons acting in concert was no
more than half of total number of the Company’s Board of Directors.
Shareholders with over 10% shares held in ultimate controlling level
√Yes □No
Natural person
Shares held in ultimate controlling level
Whether to obtain the right of abode
Shareholders Nationality
in other countries or regions
Yao Zhenhua China No
Major occupations and duties Chairman of Shenzhen Baoneng Investment Group Co., Ltd.
Situation of holding domestic and abroad
N/A
listed companies over the past 10 years
Changes of actual controller in the report period
□ Applicable √ Not applicable
Property right and controlling relationship between the largest shareholder and the Company is as follow:
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CSG Annual Report 2021
Actual controller controlling of the Company by entrust or other assets management
□Applicable √Not applicable
4. The company's controlling shareholder or the largest shareholder and its concerted action person's
cumulative pledged shares account for 80% of the company's shares held by them
□ Applicable √ Not applicable
5. Particulars about other legal person shareholders holding over 10% of the company's shares
□ Applicable √ Not applicable
6. Limitation on share reduction of controlling shareholders, actual controllers, recombination party and
other commitment subjects
□ Applicable √ Not applicable
IV. Specific implementation of share repurchase in the report period
Implementation progress of share repurchase
□ Applicable √ Not applicable
Implementation progress of reducing share repurchased by centralized bidding
□ Applicable √ Not applicable
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CSG Annual Report 2021
Section VIII. Preferred shares
□Applicable √ Not applicable
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CSG Annual Report 2021
Section IX. Bonds
√Applicable □ Not applicable
I. Enterprise bonds
□Applicable √ Not applicable
The Company had no enterprise bonds during the report period.
II. Corporate bonds
√Applicable □ Not applicable
1. Basic information about corporate bonds
Unit: RMB
Way of
Bond Maturity Interest repayment Trading
Name Short name Issue date Value date Bond balance
code date rate of principal place
and interest
Use simple
interest to
calculate
the annual
interest,
CSG’s excluding
Public compound
Issuance interest.
of Interest is
Corporat paid once a Shenzhen
149079 2020-3-24 to
e Bonds 20 CSG 01 2020-3-25
2020-3-25 2023-3-25 2,000,000,000 6.00% year, Stock
to principal is Exchange
Qualified repaid once
Investors due, and
2020 the last
(Phase I) installment
of interest
is paid
together
with the
principal.
The corporate bonds shall be publicly issued to qualified institutional investors who
Appropriate arrangements for have opened qualified A-share securities accounts in the Shenzhen branch of China
investors securities registration and clearing Co., Ltd., in accordance with the provisions of the
"Measures for the Administration of Corporate Bond Issuance and Trading".
Matching transaction, click transaction, inquiry transaction, bidding transaction and
Applicable trading mechanism
negotiation transaction.
Whether there are risks (if
any) of terminating listing
No
transactions and
countermeasures
Overdue bonds
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CSG Annual Report 2021
□Applicable √ Not applicable
2. Triggering and enforcement of issuer or investor option provisions, investor protection provisions
□Applicable √ Not applicable
3. Information on intermediaries
Name of Name of signing Intermediar
Name of bond project Office address Contact number
intermediary accountant y contact
Western
CSG’s Public Issuance Room 10000, building 8,
Securities Co.,
of Corporate Bonds to No. 319, Dongxin Street,
Ltd. (lead - Lv Yue 010-68086722
Qualified Investors Xincheng District, Xi'an
underwriter and
2020 (Phase I) City, Shaanxi Province
bond trustee)
CSG’s Public Issuance Asia Pacific Zhang Yan, Pan
20th floor, Jujie Financial
of Corporate Bonds to (Group) CPAs Qian, Zhou Zhou
Building, Lize Road, 0551-62840302
Qualified Investors (special general Xianhong, Zhao Xianhong
Fengtai District, Beijing
2020 (Phase I) partnership) Qingjun
41st Floor, Special
CSG’s Public Issuance Economic Zone
of Corporate Bonds to Guohao Law Firm Newspaper Building, No. Wang
- 0755-83515666
Qualified Investors (Shenzhen) 6008 Shennan Avenue, Caizhang
2020 (Phase I) Futian District, Shenzhen,
Guangdong Province
Building 5, Galaxy SOHO,
CSG’s Public Issuance
China Chengxin No. 2, Nanzhugan Hutong,
of Corporate Bonds to
International Chaoyangmennei Street, - Du Peishan 010-66428877
Qualified Investors
Credit Rating Co Dongcheng District,
2020 (Phase I)
Beijing
Whether there was any change on the above institutions during the report period
□ Yes √No
4. Use of raised fund
Unit: RMB
Whether it is
consistent with
Operation of the Rectification of
the purpose, use
Name of bond Total amount of Unused special account illegal use of
Amount used plan and other
project funds raised amount for raised funds raised funds (if
agreements
(if any) any)
promised in the
prospectus
The special
CSG’s Public account for
Issuance of raised funds
Corporate operates in
Bonds to 2,000,000,000 2,000,000,000 0.00 strict Nil Yes
Qualified accordance with
Investors 2020 the relevant
(Phase I) provisions of
the prospectus.
Raised funds for construction projects
□Applicable √ Not applicable
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CSG Annual Report 2021
The company changed the purpose of the funds raised by the above bonds during the report period
□Applicable √ Not applicable
5. Adjustment of credit rating results during the report period
□Applicable √ Not applicable
6. The implementation and changes of guarantees, debt repayment plans and other debt repayment
guarantee measures during the reporting period and their impact on the rights and interests of bond investors
√Applicable □ Not applicable
During the report period, the guarantees, debt repayment plans and other debt repayment safeguards of "20 CSG 01"
have not been changed which are the same as the relevant commitments of its prospectus. The basic situation is as follows:
1. Credit promotion measures
The bonds are unsecured.
2. Debt repayment plan
"20 CSG 01" will pay interest once a year during its duration, and the principal will be repaid once upon maturity. The
interest of the last period will be paid together with the repayment of the principal. The payment date of "20 CSG 01" is
March 25 of each year from 2021 to 2023, and the payment date is March 25, 2023 (in case of a statutory holiday or rest
day, it will be postponed to the first trading day thereafter).
3. Repayment safeguards
The debt repayment guarantee measures of "20 CSG 01" include designating a special department to be responsible for
repayment, strictly implementing the use of raised funds, giving full play to the role of bond trustee, formulating
bondholders' meeting rules, strictly fulfilling information disclosure obligations, etc., so as to fully and effectively
safeguard the interests of bondholders.
III. Debt financing instruments of non-financial enterprises
□Applicable √ Not applicable
During the report period, the Company did not have non-financial corporate debt financing instruments.
IV. Convertible corporate bonds
□Applicable √ Not applicable
During the report period, the Company did not have convertible corporate bonds.
V. The loss within the scope of consolidated statements in the report period exceeded 10% of the net assets
at the end of the previous year
□Applicable √ Not applicable
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CSG Annual Report 2021
VI. Overdue situation of interest-bearing debts other than bonds at the end of the report period
□Applicable √ Not applicable
VII. Whether there is any violation of rules and regulations during the reporting period
□ Yes √ No
VIII. Main accounting data and financial indicators of the company in recent two years by the end of the
reporting period
RMB 0,000
Increase and decrease at the end
At the end of the report At the end of the
Item of the report compared with the
period previous year
end of the previous year
Current ratio 1.66 1.21 37.19%
Asset-liability ratio 40% 41% -1%
Quick ratio 1.38 1.00 38.00%
Increase and decrease in the
The same period of the
The report period report period over the same
previous year
period of last year
Net profit after deducting non-
143,954 53,998 166.59%
recurring gains and losses
EBITDA total debt ratio 38% 32% 6%
Interest coverage ratio 10.38 4.88 112.70%
Cash interest coverage ratio 23.91 11.83 102.11%
EBITDA interest coverage ratio 15.09 8.15 85.15%
Loan repayment rate 100.00% 100.00%
Interest coverage ratio 100.00% 100.00%
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CSG Annual Report 2021
Section X. Financial Report
I. Report of the Auditors
Type of Auditor’s Opinion Standard and unqualified
Issue date of Report of the Auditors April 21, 2022
Name of Auditor’s organization Asia Pacific (Group) CPAs (special general partnership)
Reference number of Report of the Auditors Ya-Kuai-Shen-Zi (2022) No. 01320028
Name of CPA Zhou Xianhong, Wu Yiluo
Auditor’s Report
Ya-Kuai-Shen-Zi (2022) No. 01320028
To the shareholders of CSG Holding Co., Ltd.,
I. Opinion
We have audited the accompanying financial statements of CSG Holding Co., Ltd.
(hereinafter “the Company”), which comprise the Separate/Consolidated Statements of
Financial Position as at 31 December 2021, and the Separate/Consolidated Statements of
profit or loss, the Separate/Consolidated Statements of changes in equity and the
Separate/Consolidated Statements of cash flows for the year then ended, and the notes to
the financial statements.
In our opinion, the financial statements attached were prepared in line with the regulations
of Accounting Standards for Business Enterprises in all significant aspects which gave a
true and fair view of the consolidated and parent financial position of the Company as at
Dec. 31, 2021 and the consolidated and parent business performance and cash flow of the
Company for 2021.
II. Basis of Opinion
We conducted our audit in accordance with Standards on Auditing for Certified Public
Accountants. Our responsibility is to express an opinion on these financial statements based
on our audit. Those standards require that we comply with ethical requirements and plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free from material misstatement. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our audit opinion.
III. Key audit matters
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CSG Annual Report 2021
Key audit matters are those matters that, in our professional judgement, were of most
significance in our audit of the financial statements of the current period. These matters
were addressed in the context of our audit of the financial statements as a whole, and in
forming our opinion thereon, and we do not provide a separate opinion on these matters.
We determine the followings are key audit matters in need of communication in our report.
I) Impairment of Long-term assets
1. Matter description
As disclosed in the financial statements, by 31st December 2021, Impairment provision for
construction in progress of The Company was RMB 1,276.28 million, Impairment provision
the fixed assets was RMB 1,013.62 million. The main matters during current year are as
follows:
(1)As the electronic glass product market is updated faster, the management of the company
(hereinafter referred to as the management) plan has technically reform to the Phase I
Electronic Glass Production Line of the subsidiary Qingyuan CSG Energy Support New
Material Co., Ltd., And some of the assets of the original production line have signs of
impairment.
(2) Based on the rapid spread of the photovoltaic battery and components, high conversion
efficiency trends, the subsidiary of Dongguan CSG Photovoltaic Technology Co., Ltd., has
the technical level lower and high energy consumption Preparation of values, which show a
sign of impairment.
(3) Yichang CSG Silicon Materials Co., Ltd. polysilicon factory has checked and fully
analyzed the assets in the process of technical transformation and re-inspection. Some
assets of polysilicon factory that need technical transformation, elimination, maintenance or
cannot be used, show signs of impairment.
The management has identified and conducted impairment tests for some related assets
which show a sign of impairment. During the test, the management has engaged an
independent valuer to assist in the identification and valuation of the recoverable amount of
relevant asset and compared it with the book value of the corresponding assets. The results
showed that the recoverable amount of related assets was lower than its book value.
According to the differences in amount, the provision for impairment of fixed assets and
construction in progress should be noted by the company. The impairment test involves
confirming key parameters including discount rate and assumptions for future administration,
such as the revenue growth rate, the gross profit margin etc. Due to the procedure of related
assets impairment involved significant decisions and predictions made by the management
team, we therefore have confirmed this as a key audit matter.
2. Countermeasures of Audit
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CSG Annual Report 2021
(1) Understood and tested the effectiveness of design and operation of CSG internal control
system relating to the provision for impairment of the fixed assets and the construction in
progress;
(2) Checked the fixed asset and construction in progress in field survey and implemented of
physical procedures;
(3) Evaluated management's identification of the relevant asset groups assertions and the
amount of assets allocated to each asset group and assessed the reasonableness of
management's method of impairment of related assets;
(4) Communicated with management and evaluated impairment of fixed assets and
construction in progress key assumptions , Valuation method, Cash flow forecast and other
key parameters for obtaining significant management estimates and judgments, such as the
revenue growth rate, the gross profit margin, the expense growth rate and the discount rate
etc, to be reviewed;
(5) Assessed the professional competency ,objectivity, and independence of the third parties
of independent valuer and reviewed the evaluation methods, evaluation assumptions,
discount rates and other key parameters of valuation reports and reviewed the
reasonableness of the calculation of evaluation data;
(6) Checked the provision of impairment of fixed asset and construction in progress relevant
presents and disclosures whether is appropriate and complete in the presentation of
financial statements following accounting standards.
II) Impairment of receivable
1. Matter description
As disclosed in the financial statements, by 31st December 2021, The carrying amount of
notes receivable was RMB 40 million and impairment provision for notes receivable of The
Company was RMB 20.78 million, The carrying amount of accounts receivable was RMB
847.85 million and impairment provision for the accounts receivable was RMB 117.32 million.
The impairment provision for notes receivable and accounts receivable shall mainly include:
Engineering Glass Business Subsidiaries received the trade acceptance bill endorsed by
the customer and issued by Evergrande and their subsidiaries. The capital turnover of
Evergrande and their subsidiaries is difficult to be paid in the future. The provision for notes
receivable was partially accrued. The carrying amount of other receivables is RMB 246.85
million yuan, and the impairment provision is RMB 63.16 million.The impairment provision
of other receivables for this period mainly include: other receivables of the company is RMB
171 million from Yichang Hongtai Real Estate Co., Ltd., The risk of company's management
expects to receive back will be higher in this year, and provision for other receivables was
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CSG Annual Report 2021
partially accrued. According to professional institutions such as lawyers analysis and
recommendation, The management of the company and the company's business
department, the legal department discussed and assessing the recoverable, and
reassessing the expected credit risk of the above payments. Due to the receivables and
their impairment have a significant impact on the financial statements, and the procedure of
receivable recoverable and credit loss risk involved significant decisions and predictions
made by the management team, we therefore have confirmed this as a key audit matter.
2. Countermeasures of Audit
(1) Understood and tested the effectiveness of design and operation of CSG internal control
system relating to the provision for impairment of the receivables;
(2) Communicated with sales department and understood the company's sales policy, credit
policy, payback situation, checked the main terms and implementation of the relevant sales
contracts;
(3) Through the Chinese referee document network, the national court is inquiry the principal
customer information on public channels, and evaluates its debt repayment capabilities;
(4) Verified the authenticity of the relevant customers confirmations, the non-response
partially implemented alternatives, including, but not limited to, check sales contracts, orders,
outbound orders, transport orders, sign receipts, acceptors, settlement orders, etc. Whether
the payment will be checked after the period;
(5) Discussed with the company's management to understand the estimated credit risk of
related customers and Checked the company's receivables calculation process, checked
the expected credit loss rate calculation process of related customers, and re-measure credit
risk loss according to the company's accounting policies;
(6) Check if the receivables and its impairment are appropriately disclosed in the financial
statements.
IV. Other information
The management layer of the Company shall be responsible for other information, including
the information covered in the financial report, but excludes financial statements and our
audit report.
Our audit opinion on financial statements does not include other information; we will not
make the authentication conclusion on other information in any form.
In connection with our audit of the financial statements, our responsibility is to read the
other information and, in doing so, consider whether the other information is materially
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CSG Annual Report 2021
inconsistent with the financial statements or our knowledge obtained in the audit or
otherwise appears to be materially misstated.
If based on the work we have performed, we conclude that there is a material misstatement
of this other information, we are required to report that fact. We have nothing to report in this
regard.
V. Responsibilities of Management and Governance for Financial Statements
The management is responsible for preparing the financial statements in accordance with
the provisions of the Accounting Standards for Business Enterprises to achieve a fair
reflection, and designing, implementing and maintaining the necessary internal controls so
that the financial statements are free from material misstatement due to fraud or errors.
In preparing financial statements, the management layer is responsible for assessing the
company's sustained business capability, disclosing matters related to continue
operating,using the going-concern assumption unless management either intends to
liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The governance layer is responsible for supervising the financial reporting process of the
company.
VI. Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance as to whether there are no major
misstatements due to fraud or errors in the overall financial statements, and to issue an audit
report containing audit opinions. Reasonable assurance is the high-level assurance, but it
can ’ t assure that a certain major misstatement can be always found when auditing
according to the audit standard. The misstatement may be caused by malpractices or error.
If the misstatements within the rational expectations may affect the economic decision of the
financial statement user according to the financial statement, it shall be deemed that the
misstatement is significant.
During the process of conducting the audit work according to audit standards, we apply
professional judgment and keep professional skepticism. Meanwhile, we also perform the
following tasks:
(1) Identify and assess the risks of material misstatement of the financial statements,
whether due to fraud or error, design and perform audit procedures responsive to those
risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our
opinion. The risk of not detecting a material misstatement resulting from fraud is higher than
for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
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CSG Annual Report 2021
(2) Understand the internal control related to audit, so as to design appropriate audit
procedures.
(3)Estimate the appropriateness of the accounting policies selected by the management
layer, and the rationality of making accounting estimate and relevant disclosures.
(4)Draw a conclusion on the appropriateness of the going concern assumption used by the
management layer. Meanwhile, according to the obtained audit evidence, it may cause to
come to the conclusion that there are substantial doubtable events or major uncertainty for
the sustainable operation ability of the Company. In case that we come to the conclusion
that there is a significant uncertainty, the audit standards require us to remind the users of
the statements to pay attention to relevant disclosures in the financial statements in the audit
report; In case of any insufficient disclosure, we shall give modified opinions. Our conclusion
is based on the available information up to the audit report day. However, the future events
or circumstances may cause the Company cannot continue to operate.
(5) Estimate the overall presentation, structure and content (disclosure included) of the
financial statements, and Estimate whether the financial statements fairly reflect relevant
transactions and matters.
(6) Acquire adequate and appropriate audit evidences on the financial information of the
entity or business activities of the Company, and give audit opinions on the consolidated
financial statements. We are responsible for guiding, supervising and executing the audit of
the Group, and take all responsibilities for the audit opinions.
We communicate with the governance layer about the audit scope, schedule, significant
audit findings and other matters within the plan, including the noteworthy internal control
defects recognized by us during the audit.
We also provide statements to the governance layer on the compliance with the professional
ethics requirement related to the independence, and communicate with the governance
layer on all relationships and other matters that may reasonably be considered to affect our
independence, as well as relevant preventive measures.
From the matters that we have communicated with the governance layer, we confirm the
most important matters for the audit of the current financial statements, and thus constitute
the key audit matters. We describe these matters in our audit report, unless laws and
regulations prohibit the public disclosure of these matters, or in rare cases, if it is reasonably
expected that the negative consequences of communicating a matter in the audit report will
surpass the benefits in the public interests, we confirm that the matter shall not be
communicated in the audit report.
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CSG Annual Report 2021
Asia-Pacific (Group) Certified Public Accountant of China
Certified Public Accountants
(special general partnership)
Beijing, China Certified Public Accountant of China
21 April 2022
- 92 -
CSG Annual Report 2021
CSG HOLDING CO., LTD.
CONSOLIDATED AND COMPANY’S BALANCE SHEETS
AS AT 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
31 December 2021 31 December 2020 31 December 2021 31 December 2020
ASSETS Note Consolidated Consolidated Company Company
Current assets
Cash at bank and on hand 4(1) 2,765,925,906 2,125,788,903 1,961,406,035 1,072,875,571
Financial assets held for
trading 4(2) 999,600,000 - 999,600,000 -
Notes receivable 4(3) 19,220,984 207,966,892 - -
Accounts receivable 4(4) 730,525,687 681,467,133 - -
Receivables Financing 4(5) 297,046,123 382,527,782 - -
Advances to suppliers 4(6) 76,097,276 85,928,641 639,164 1,650,184
Other receivables 4(7)/16(1) 183,696,711 200,969,854 2,899,091,405 3,803,908,369
Inventories 4(8) 1,093,805,525 815,156,318 - -
Other current assets 4(9) 140,705,298 140,031,544 - 66,321
Total current assets 6,306,623,510 4,639,837,067 5,860,736,604 4,878,500,445
Non-current assets
Long-term equity investments 16(2) - - 6,262,391,694 5,844,507,870
Investment properties 4(10) 383,084,500 383,084,500 - -
Fixed assets 4(11) 8,566,515,026 9,145,644,569 11,509,029 19,769,193
Construction in progress 4(12) 2,461,088,650 1,893,380,611 - -
Right-of-use assets 4(13) 9,911,935 - - -
Intangible assets 4(14) 1,167,611,402 1,139,718,255 2,102,548 140,836
Development expenditure 4(14) 72,019,362 49,153,407 - -
Goodwill 4(15) 130,147,859 233,375,693 - -
Long-term prepaid expenses 3,013,721 10,381,937 - -
Deferred tax assets 4(16) 255,185,923 194,979,414 - -
Other non-current assets 4(17) 584,162,622 193,359,445 104,109,111 4,546,275
Total non-current assets 13,632,741,000 13,243,077,831 6,380,112,382 5,868,964,174
TOTAL ASSETS 19,939,364,510 17,882,914,898 12,240,848,986 10,747,464,619
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CSG Annual Report 2021
CSG HOLDING CO., LTD.
CONSOLIDATED AND COMPANY’S BALANCE SHEETS (CONT'D)
AS AT 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
31 December 2021 31 December 2020 31 December 2021 31 December 2020
LIABILITIES AND OWNERS'
EQUITY Note Consolidated Consolidated Company Company
Current liabilities
Short-term borrowings 4(19) 180,770,000 352,895,571 100,000,000 49,800,000
Notes payable 4(20) 400,662,713 144,851,192 - -
Accounts payable 4(21) 1,428,851,312 1,237,833,051 315,684 249,721
Contract liabilities 4(22) 335,188,642 296,776,624 - -
Employee benefits payable 4(23) 426,212,979 342,352,166 68,534,315 46,504,458
Taxes payable 4(24) 185,009,681 194,921,071 8,316,132 9,457,159
Other payables 4(25)/16(3) 289,440,477 287,332,992 2,067,472,879 1,002,135,702
Current portion of non-
current liabilities 4(26) 503,820,548 927,531,709 400,000,000 800,000,000
Other current liabilities 4(27) 40,099,309 34,586,292 - -
Total current liabilities 3,790,055,661 3,819,080,668 2,644,639,010 1,908,147,040
Non-current liabilities
Long-term borrowings 4(28) 1,469,059,824 853,253,983 690,000,000 700,000,000
Debentures payable 4(29) 1,996,587,330 1,994,020,348 1,996,587,330 1,994,020,348
Lease liabilities 4(30) 220,138 - - -
Long-term payables 4(31) 168,258,062 - - -
Deferred tax liabilities 4(16) 84,580,132 102,619,932 - -
Deferred income 4(32) 564,129,128 498,056,081 172,500,000 180,496,249
Total non-current liabilities 4,282,834,614 3,447,950,344 2,859,087,330 2,874,516,597
Total liabilities 8,072,890,275 7,267,031,012 5,503,726,340 4,782,663,637
Shareholders’ equity
Share capital 4(33) 3,070,692,107 3,070,692,107 3,070,692,107 3,070,692,107
Capital surplus 4(34) 596,997,085 596,997,085 741,824,399 741,824,399
Other comprehensive income 4(35) 159,200,530 161,816,819 - -
Special reserve 4(36) 7,296,397 10,269,002 - -
Surplus reserve 4(37) 1,144,887,510 1,036,948,422 1,159,432,870 1,051,493,782
Undistributed profits 4(38) 6,450,587,417 5,336,266,412 1,765,173,270 1,100,790,694
Total equity attributable to
shareholders of parent company 11,429,661,046 10,212,989,847 6,737,122,646 5,964,800,982
Minority interests 436,813,189 402,894,039 - -
Total shareholders' equity 11,866,474,235 10,615,883,886 6,737,122,646 5,964,800,982
TOTAL LIABILITIES AND
SHAREHOLDERS’ EQUITY 19,939,364,510 17,882,914,898 12,240,848,986 10,747,464,619
The accompanying notes form are attached as an integral part of these financial statements.
Legal representative: Principal in charge of accounting: Head of accounting department:
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CSG Annual Report 2021
CSG HOLDING CO., LTD.
CONSOLIDATED AND COMPANY’S INCOME STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2021 2020 2021 2020
Item Note Consolidated Consolidated Company Company
Revenue 4(39) 13,629,033,650 10,671,253,445 294,247,989 217,297,219
Less: Cost of sales 4(39) (8,849,488,093) (7,444,465,731) - -
Taxes and surcharges 4(40) (148,655,418) (121,898,522) (2,560,152) (2,292,619)
Selling and distribution expenses 4(41) (270,695,433) (233,918,938) - -
General and administrative expenses 4(42) (752,605,507) (666,976,561) (297,252,293) (273,626,323)
Reseach and development expenses 4(43) (511,738,848) (404,842,498) (2,631,501) (1,047,802)
Financial expenses - net 4(44) (151,182,191) (224,011,920) (138,319,862) (167,576,428)
Inclouding: interest expenses (188,858,163) (273,308,059) (177,942,376) (214,088,327)
Interest income 42,702,029 53,404,661 39,200,530 49,221,299
Add：Other Income 4(48) 106,465,817 99,560,400 3,162,514 4,228,915
Gains/(Losses) arising from changes in fair
value 4(46) - 179,911,200 - -
Investment income 4(47)/16(4) 16,847,647 2,654,504 1,279,006,799 1,136,439,598
Credit impairment loss 4(49) (153,894,437) (5,722,619) (48,513,009) (1,571,191)
Asset impairment loss 4(50) (981,665,546) (738,508,094) - -
Income on disposal assets 4(51) (1,493,248) (1,158,984) 6,893,580 15,761
Operating profit 1,930,928,393 1,111,875,682 1,094,034,065 911,867,130
Add: Non-operating revenue 4(52) 12,604,534 14,369,839 383,646 -
Less: Non-operating expenses 4(53) (26,130,744) (20,554,395) (15,026,836) (4,895,769)
Total profit 1,917,402,183 1,105,691,126 1,079,390,875 906,971,361
Less: Income tax (expenses)/revenue 4(54) (356,153,729) (293,738,145) - -
Net profit 1,561,248,454 811,952,981 1,079,390,875 906,971,361
（一）Classified by continuous operation:
Net income from continuing operations (“-” for net
loss) 1,561,248,454 811,952,981 1,079,390,875 906,971,361
Net income from discontinued operations (“-” for net
loss) - - - -
（二）Classified by equity ownership:
Attributable to shareholders of parentcompany 1,529,329,304 779,325,592 - -
Minority interests 31,919,150 32,627,389 - -
Other comprehensive income net after tax (2,616,289) 155,250,955 - -
Other comprehensive income net after tax
attributable to shareholders of parentcompany (2,616,289) 155,250,955 - -
Other comprehensive income items which will
be reclassified subsequently to profit or loss (2,616,289) 155,250,955 - -
Differences on translation of foreign currency
financial statements (2,616,289) (5,900,842) - -
Income generated when self-property and land use
rights are converted into investment property - 161,151,797 - -
Other comprehensive income net after tax
attributable to minority interests - - - -
Total comprehensive income 1,558,632,165 967,203,936 1,079,390,875 906,971,361
Total comprehensive income attributable to
shareholders of parent company 1,526,713,015 934,576,547
Total comprehensive income attributable to
minority interests 31,919,150 32,627,389
Earnings per share 4(55)
Basic earnings per share (RMB Yuan) 4(55) 0.50 0.25
Diluted earnings per share (RMB Yuan) 4(55) 0.50 0.25
The accompanying notes form are attached as an integral part of these financial statements.
Legal representative: Principal in charge of accounting: Head of accounting department:
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CSG Annual Report 2021
CSG HOLDING CO., LTD.
CONSOLIDATED AND COMPANY’S CASH FLOW STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2021 2020 2021 2020
Item Note Consolidated Consolidated Company Company
1. Cash flows from operating activities
Cash received from sales of goods or rendering of
services 15,127,773,082 11,736,154,948 312,321,151 223,086,978
Refund of taxes and surcharges 53,331,689 61,780,834 - 613,918
Cash received relating to other operating activities 4(56)(a) 261,031,274 177,764,210 44,045,856 58,247,245
Sub-total of cash inflows 15,442,136,045 11,975,699,992 356,367,007 281,948,141
Cash paid for goods and services (8,246,043,888) (6,674,993,246) - -
Cash paid to and on behalf of employees (1,638,657,553) (1,377,255,224) (232,793,262) (255,127,287)
Payments of taxes and surcharges (1,214,512,667) (769,776,963) (20,131,229) (8,844,083)
Cash paid relating to other operating activities 4(56)(b) (440,837,552) (423,054,923) (51,990,613) (30,178,208)
Sub-total of cash outflows (11,540,051,660) (9,245,080,356) (304,915,104) (294,149,578)
Net cash flows from/(used in) operating activities 3,902,084,385 2,730,619,636 51,451,903 (12,201,437)
2. Cash flows from investing activities
Cash received from returns on investments 4,424,000,000 - 4,360,335,176 411,387,134
Cash received from returns on invest income 16,163,055 2,654,504 1,277,124,439 862,091,239
Net cash received from disposal of fixed assets,
intangible assets and other long-term assets 4,916,078 1,887,056 2,663,907 10,571
Cash received relating to other investing activities 4(56)(c) 80,944,683 435,177,324 - 300,000,000
Sub-total of cash inflows 4,526,023,816 439,718,884 5,640,123,522 1,573,488,944
Cash paid to acquire fixed assets, intangible assets
and other long-term assets (1,827,187,640) (1,110,769,762) (5,406,991) (8,306,897)
Cash paid to acquire investments (5,523,600,000) - (5,877,819,000) (1,151,168,328)
Cash paid relating to other investing activities 4(56)(d) (80,312,270) (118,741,948) - -
Sub-total of cash outflows (7,431,099,910) (1,229,511,710) (5,883,225,991) (1,159,475,225)
Net cash flows (used in)/from investing activities (2,905,076,094) (789,792,826) (243,102,469) 414,013,719
3. Cash flows from financing activities
Cash received from investors 2,000,000 - - -
Cash received from borrowings 1,637,354,868 2,277,466,685 814,000,000 1,582,799,801
Cash received from issuing debentures - 1,991,680,000 - 1,991,680,000
Cash received relating to other financing activities 4(56)(e) 200,000,000 153,698,226 1,960,258,923 74,599,652
Sub-total of cash inflows 1,839,354,868 4,422,844,911 2,774,258,923 3,649,079,453
Cash repayments of borrowings (1,655,022,054) (5,024,614,676) (1,173,800,000) (4,049,999,801)
Cash payments for interest expenses and
distribution of dividends or profits (547,085,016) (438,591,829) (520,361,295) (336,840,490)
Cash payments relating to other financing activities 4(56)(f) - (604,225,442) - -
Sub-total of cash outflows (2,202,107,070) (6,067,431,947) (1,694,161,295) (4,386,840,291)
Net cash flows (used in)/from financing activities (362,752,202) (1,644,587,036) 1,080,097,628 (737,760,838)
4. Effect of foreign exchange rate changes on cash (1,806,713) (4,046,608) 748,101 (66,943)
5. Net increase/(decrease) in cash and cash
equivalents 4(57)(b) 632,449,376 292,193,166 889,195,163 (336,015,499)
Add: Cash and cash equivalents at beginning of year 2,124,028,196 1,831,835,030 1,071,200,364 1,407,215,863
6. Cash and cash equivalents at end of year 4(57)(c) 2,756,477,572 2,124,028,196 1,960,395,527 1,071,200,364
The accompanying notes form are attached as an integral part of these financial statements.
Legal representative: Principal in charge of accounting: Head of accounting department:
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CSG Annual Report 2021
CSG HOLDING CO., LTD.
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
Attributable to shareholders of parentcompany
Other Total
Capital Less: Treasury comprehensi Special Surplus Undistributed Minority shareholders'
Item Share capital surplus share ve income reserve reserve profits Sub-total interests equity
Note 4(33) 4(34) 4(35) 4(36) 4(37) 4(38)
Balance at 1 January 2020 3,106,915,005 683,219,358 (118,066,397) 6,565,864 11,102,921 946,251,286 4,859,600,841 9,495,588,878 370,266,650 9,865,855,528
Movements for the year ended 31
December 2020
Total comprehensive income
Net profit - - - - - - 779,325,592 779,325,592 32,627,389 811,952,981
Other comprehensive income 4(35) - - - 155,250,955 - - - 155,250,955 - 155,250,955
Total comprehensive income - - - 155,250,955 - - 779,325,592 934,576,547 32,627,389 967,203,936
Capital contribution and
withdrawal by shareholders (36,222,898) (86,222,273) 118,066,397 - - - - (4,378,774) - (4,378,774)
Share-based payments (36,222,898) (86,222,273) 118,066,397 - - - - (4,378,774) - (4,378,774)
Profit distribution - - - - - 90,697,136 (302,660,021) (211,962,885) - (211,962,885)
Appropriation to surplus
4(37) - - - - - 90,697,136 (90,697,136) - - -
reserve
Distribution to the
shareholders 4(38) - - - - - - (211,962,885) (211,962,885) - (211,962,885)
Special reserve - - - - (833,919) - - (833,919) - (833,919)
Special reserve appropriate 4(36) - - - - - - - - - -
Special reserve used 4(36) - - - - (833,919) - - (833,919) - (833,919)
Balance at 31 December 2020 3,070,692,107 596,997,085 - 161,816,819 10,269,002 1,036,948,422 5,336,266,412 10,212,989,847 402,894,039 10,615,883,886
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CSG Annual Report 2021
CSG HOLDING CO., LTD.
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY (CONT’D)
FOR THE YEAR ENDED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
Other Total
Capital comprehensiv Special Surplus Undistributed Minority shareholders'
Item Share capital surplus e income reserve reserve profits Sub-total interests equity
Note 4(33) 4(34) 4(35) 4(36) 4(37) 4(38)
Balance at 1 January 2021 3,070,692,107 596,997,085 161,816,819 10,269,002 1,036,948,422 5,336,266,412 10,212,989,847 402,894,039 10,615,883,886
Movements for the year ended 31
December 2021
Total comprehensive income
Net profit - - - - - 1,529,329,304 1,529,329,304 31,919,150 1,561,248,454
Other comprehensive income 4(35) - - (2,616,289) - - - (2,616,289) - (2,616,289)
Total comprehensive income - - (2,616,289) - - 1,529,329,304 1,526,713,015 31,919,150 1,558,632,165
Capital increase or decrease
from shareholder - - - - - - - 2,000,000 2,000,000
Capital increase from minority
shareholder - - - - - - - 2,000,000 2,000,000
Profit distribution - - - - 107,939,088 (415,008,299) (307,069,211) - (307,069,211)
Appropriation to surplus
4(37) - - - - 107,939,088 (107,939,088) - - -
reserve
Distribution to the
shareholders 4(38) - - - - - (307,069,211) (307,069,211) - (307,069,211)
Special reserve - - - (2,972,605) - - (2,972,605) - (2,972,605)
Special reserve appropriate 4(36) - - - - - - - - -
Special reserve used 4(36) - - - (2,972,605) - - (2,972,605) - (2,972,605)
Balance at 31 December 2021 3,070,692,107 596,997,085 159,200,530 7,296,397 1,144,887,510 6,450,587,417 11,429,661,046 436,813,189 11,866,474,235
The accompanying notes form are attached as an integral part of these financial statements.
Legal representative: Principal in charge of accounting: Head of accounting department:
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CSG Annual Report 2021
CSG HOLDING CO., LTD.
COMPANY'S STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
Attributable to shareholders of parent company
Less: Total
Treasury Surplus Undistributed shareholders'
Item Share capital Capital surplus share reserve profits equity
Balance at 1 January 2020 3,106,915,005 828,046,672 (118,066,397) 960,796,646 496,479,354 5,274,171,280
Movements for the year ended 31
December 2020
Total comprehensive income
Net profit - - - - 906,971,361 906,971,361
Total comprehensive income - - - - 906,971,361 906,971,361
Capital increase or decrease from
shareholder (36,222,898) (86,222,273) 118,066,397 - - (4,378,774)
Share-based payments (36,222,898) (86,222,273) 118,066,397 - - (4,378,774)
Profit distribution - - - 90,697,136 (302,660,021) (211,962,885)
Appropriation to surplus reserve - - - 90,697,136 (90,697,136) -
Distribution to the shareholders - - - - (211,962,885) (211,962,885)
Capital reserve to share capital - - - - - -
Balance at 31 December 2020 3,070,692,107 741,824,399 - 1,051,493,782 1,100,790,694 5,964,800,982
Balance at 1 January 2021 3,070,692,107 741,824,399 - 1,051,493,782 1,100,790,694 5,964,800,982
Movements for the year ended 31
December 2021
Total comprehensive income
Net profit - - - - 1,079,390,875 1,079,390,875
Total comprehensive income - - - - 1,079,390,875 1,079,390,875
Capital increase or decrease from
shareholder - - - - - -
Share-based payments - - - - - -
Profit distribution - - - 107,939,088 (415,008,299) (307,069,211)
Appropriation to surplus reserve - - - 107,939,088 (107,939,088) -
Distribution to the shareholders - - - - (307,069,211) (307,069,211)
Capital reserve to share capital
Balance at 31 December 2021 3,070,692,107 741,824,399 - 1,159,432,870 1,765,173,270 6,737,122,646
The accompanying notes form are attached as an integral part of these financial statements.
Legal representative: Principal in charge of accounting: Head of accounting department:
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CSG Annual Report 2021
1 General information
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 31 December 2021,
the registered capital was RMB 3,070,692,107, with nominal value of RMB1 per share.
The Company and its subsidiaries (collectively referred to as the “Group”) are mainly engaged in the
manufacture and sales of flat glass, specialised glass, engineering glass, energy saving glass, silicon
related materials, polycrystalline silicon and solar components and electronic-grade display device glass
and the construction and operation of photovoltaic plant etc.
Details on the majors subsidiaries included in the consolidated scope in current year were stated in
Note .
The financial statements were authorised for issue by the Board of Directors on 21 April 2022.
2 Summary of significant accounting policies and accounting estimates
The Group determines its specific accounting policies and accounting estimates to manufacturing and
operation feature. It mainly reflected in expected credit impairment losses of receivables was measured,
inventory costing method, Depreciation of fixed assets and amortization of intangible assets, criteria for
determining capitalised development expenditure, and timing for revenue recognition.
Refer to the notes for details of the key judgements adopted by the Group in applying important
accounting policies.
(1) 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.
The financial statements have been prepared on a going concern basis.
(2) Statement of compliance with the Accounting Standards for Business Enterprises
The financial statements of the Company for the year ended 31 December 2021 are in compliance with
the Accounting Standards for Business Enterprises, and truly and completely present the financial
position of the consolidated and the Company as at 31 December 2021 and their financial performance,
cash flows for the year then ended.
(3) Accounting year
The Company’s accounting year starts on 1 January and ends on 31 December.
(4) Recording currency
The recording currency is Renminbi (RMB).
(5) Business combinations
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CSG Annual Report 2021
(a) Business combinations involving enterprises under common control
The consideration paid and net assets obtained by the absorbing party in a business combination are
measured at book value. If the merged party was acquired by the ultimate controlling party from a third
party in the previous year, the assets and liabilities of the merged party (including the goodwill formed
by the ultimate controlling party’s acquisition of the merged party). The difference between book value
of the net assets obtained from the combination and book value of the consideration paid for the
combination is treated as an adjustment to capital surplus (share premium). If the capital surplus (share
premium) is not sufficient to absorb the difference, the remaining balance is adjusted against retained
earnings. Costs directly attributable to the combination are included in profit or loss in the period in which
they are incurred. Transaction costs associated with the issue of equity or debt securities for the
business combination are included in the initially recognised amounts of the equity or debt securities.
(b) Business combinations involving enterprises not under common control
The cost of combination and identifiable net assets obtained by the acquirer in a business combination
are measured at fair value at the acquisition date. Where the cost of the combination exceeds the
acquirer’s interest in the fair value of the acquiree’s identifiable net assets, the difference is recognised
as goodwill; where the cost of combination is lower than the acquirer’s interest in the fair value of the
acquiree’s identifiable net assets, the difference is recognised in profit or loss for the current period.
Costs directly attributable to the combination are included in profit or loss in the period in which they are
incurred. Transaction costs associated with the issue of equity or debt securities for the business
combination are included in the initially recognised amounts of the equity or debt securities.
(6) Preparation method of consolidated financial statements
The consolidated financial statements comprise the financial statements of the Company and all of its
subsidiaries.
Subsidiaries are consolidated from the date on which the Group obtains control and are de-consolidated
from the date that such control ceases. For a subsidiary that is acquired in a business combination
involving enterprises under common control, it is included in the consolidated financial statements from
the date when it, together with the Company, comes under common control of the
ultimate controlling party. The portion of the net profits realised before the combination date is presented
separately in the consolidated income statement.
In preparing the consolidated financial statements, where the accounting policies and the accounting
periods of the Company and subsidiaries are inconsistent, the financial statements of the subsidiaries
are adjusted in accordance with the accounting policies and the accounting period of the Company. For
subsidiaries acquired from business combinations involving enterprises not under common control, the
individual financial statements of the subsidiaries are adjusted based on the fair value of the identifiable
net assets at the acquisition date.
All significant intra-group balances, transactions and unrealised profits are eliminated in the consolidated
financial statements. The portion of subsidiaries’ equity and the portion of a subsidiaries’ net profits and
losses and comprehensive incomes for the period not attributable to Company are recognised as
minority interests and presented separately in the consolidated financial statements under equity, net
profits and total comprehensive income respectively. Unrealised profits and losses resulting from the
sales of assets by the Company to its subsidiaries are fully eliminated against net profit attributable to
shareholders of the parent company. Unrealised profits and losses resulting from the sales of assets by
a subsidiary to the Company are eliminated and allocated between net profit attributable to shareholders
of the parent company and non-controlling interests in accordance with the allocation proportion of the
parent company in the subsidiary. Unrealised profits and losses resulting from the sales of assets by
one subsidiary to another are eliminated and allocated between net profit attributable to shareholders of
the parent company and non-controlling interests in accordance with the allocation proportion of the
parent in the subsidiary.
After the control over the subsidiary has been gained, whole or partial minority equities of the subsidiary
owned by minority shareholders are acquired from the subsidiary’s minority shareholders. In the
consolidated financial statements, the subsidiary's assets and liabilities are reflected with amount based
on continuous calculation starting from the acquisition date or consolidation date. Capital surplus is
adjusted according to the difference between newly increased long-term equity investment arising from
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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 retained earnings.
If the accounting treatment of a transaction which considers the Group as an accounting entity is different
from that considers the Company or its subsidiaries as an accounting entity, it is adjusted from the
perspective of the Group.
(7) Cash and cash equivalents
Cash and cash equivalents refer to cash in hand, deposits that can be used for payment at any time,
and investments with short holding periods, strong liquidity, easy conversion into known amounts of
cash, and low risk of value changes.
(8) Foreign currency conversion
(a) Foreign currency transaction
Foreign currency transactions are translated into RMB using the exchange rates prevailing at the dates
of the transactions.
On the balance sheet date, monetary items denominated in foreign currencies are translated into RMB
using the spot exchange rates on the balance sheet date. Exchange differences arising from these
translations are recognised in profit or loss for the current period, except for those attributable to foreign
currency borrowings that have been taken out specifically for the acquisition or construction of qualifying
assets, which are capitalised as part of the cost of those assets. Non-monetary items denominated in
foreign currencies that are measured at historical costs are translated at the balance sheet date using
the spot exchange rates at the date of the transactions. The effect of exchange rate changes on cash is
presented separately in the cash flow statement.
(b) Conversion of foreign currency financial statements
The asset and liability items in the balance sheets for overseas operations are translated at the spot
exchange rates on the balance sheet date. Among the shareholders’ equity items, the items other than
“undistributed profits” are translated at the spot exchange rates of the transaction dates. The income
and expense items in the income statements of overseas operations are translated at the spot exchange
rates of the transaction dates. The differences arising from the above translation are presented
separately in the shareholders’ equity. The cash flows of overseas operations are translated at the spot
exchange rates on the dates of the cash flows. The effect of exchange rate changes on cash is
presented separately in the cash flow statement.
(9) Financial instrument
A financial instrument is any contract that gives rise to a financial asset of one entity and a
financial liability or equity instrument of another entity. A financial asset or a financial liability is
recognised when the Group becomes a party to the contractual provisions of the instrument.
(a) Financial assets
(i) Classification and measurement
Based on the business model for managing the financial assets and the contractual cash flow
characteristics of the financial assets, financial assets are classified as: (1) financial assets at
amortised cost; (2) financial assets at fair value through other comprehensive income; (3) financial
assets at fair value through profit or loss.
The financial assets are measured at fair value at initial recognition. Related transaction costs
that are attributable to the acquisition of the financial assets are included in the initially recognised
amounts, except for the financial assets at fair value through profit or loss, the related transaction costs
of which are recognised directly in profit or loss for the current period. Accounts receivable or
notes receivable arising from sales of products or rendering of services (excluding or without
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regard to significant financing components) are initially recognised at the consideration that is
entitled to be charged by the Group as expected.
Debt instruments
The debt instruments held by the Group refer to the instruments that meet the definition of financial
liabilities from the perspective of the issuer, and are measured in the following ways.
Measured at amortised cost
The objective of the Group's business model is to hold the financial assets to collect the
contractual cash flows, and the contractual cash flow characteristics are consistent with a basic
lending arrangement, which gives rise on specified dates to the contractual cash flows that are solely
payments of principal and interest on the principal amount outstanding. The interest income of such
financial assets is recognised using the effective interest method. Such financial assets mainly
comprise cash at bank and on hand, placements with and loans to banks and other financial
institutions measured at amortised cost, accounts receivable, factoring receivables, loans and
advances, other receivables and long-term receivables. Long-term receivables that are due within one
year (inclusive) as from the balance sheet date are included in the current portion of non-current assets.
Financial assets at fair value through other comprehensive income:
The objective of the Group's business model is to hold the financial assets to collect the contractual
cash flows and selling as target, and the contractual cash flow characteristics are consistent with
a basic lending arrangement. Such financial assets are measured at fair value and their changes are
included in other comprehensive income, but impairment losses or gains, exchange gains and losses,
and interest income calculated by the effective interest rate method are all included in the current profit
and loss. Such financial assets mainly comprise receivable financing and other financial debt
investment. Other financial debt investment that are due within one year (inclusive) as from the balance
sheet date are included in the current portion as other current assets.
Measured at fair value through profit or loss:
Debt instruments held by the Group that are not divided into those at amortised cost, or those measured
at fair value through other comprehensive income, are measured at fair value through profit or
loss and included in financial assets held for trading. At initial recognition, the Group designates
a portion of financial assets as at fair value through profit or loss to eliminate or significantly reduce
an accounting mismatch. Financial assets that are due within one year (inclusive) as from the
balance sheet date and are expected to be held over one year are included in other non-current financial
assets.
Equity instruments
Investments in equity instruments, over which the Group has no control, joint control or significant
influence, are measured at fair value through profit or loss under financial assets held for
trading; investments in equity instruments expected to be held over one year as from the balance
sheet date are included in other non-current financial assets.
In addition, a portion of certain investments in equity instruments not held for trading are designated as
financial assets at fair value through other comprehensive income under other investments in equity
instruments. The relevant dividend income of such financial assets is recognised in profit or loss
for the current period.
(ii) Impairment
The Group confirms the loss provision based on expected credit losses for financial assets measured
at amortised cost, debt instrument investments at fair value through other comprehensive income, and
financial guarantee contracts. based on expected credit losses (ECL) and recognizes allowances for
losses.
Giving consideration to reasonable and supportable information on past events, current conditions
and forecasts of future economic conditions, as well as the default risk weight , the expected credit
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loss was confirmed .
On each balance sheet date, the expected credit losses of financial instruments at different
stages are measured respectively. 12-month ECL provision is recognised for financial instruments
in Stage 1 that have not had a significant increase in credit risk since initial recognition; lifetime
ECL provision is recognised for financial instruments in Stage 2 that have had a significant
increase in credit risk yet without credit impairment since initial recognition; and lifetime ECL provision
is recognised for financial instruments in Stage 3 that have had credit impairment since initial
recognition.
For the financial instruments with lower credit risk on the balance sheet date, the Group
assumes there is no significant increase in credit risk since initial recognition and recognises
the 12-month ECL provision.
For the financial instruments in Stage 1, Stage 2 and with lower credit risk, the Group calculates the
interest income by applying the effective interest rate to the gross carrying amount (before deduction
of the impairment provision). For the financial instrument in Stage 3, the interest income is
calculated by applying the effective interest rate to the amortised cost (after deduction of the impairment
provision from the gross carrying amount).
For notes and accounts receivables and factoring receivables arising from daily business activities such
as selling commodities and providing labor services, the Group recognises the lifetime expected credit
loss provision regardless of whether there exists a significant financing component
In case the expected credit losses of an individually assessed financial asset cannot be evaluated with
reasonable cost, the Group divides the receivables into certain groupings based on credit risk
characteristics, and calculates the expected credit losses for the groupings. Basis for determined
groupings and method for provision are as follows:
Notes receivables Portfolio 1 Bank acceptance Notes Expected credit loss method
Notes receivables Portfolio 2 Trade acceptance Notes Expected credit loss method
Accounts receivables Portfolio 1 Receivables non-related third party Expected credit loss method
Accounts receivables Portfolio 2 Receivables related party Expected credit loss method
Other receivables Portfolio 1 Receivables non-related third party Expected credit loss method
Other receivables Portfolio 2 Receivables related party Expected credit loss method
For notes and accounts receivables and receivable financing arising from daily business activities such
as selling commodities and providing labor services, the Group refers to historical credit loss experience,
combined with current conditions and predictions of future economic conditions. In addition to notes
receivable, factoring receivables and other receivables classified as a combination, the Group refers to
historical credit loss experience, combines current conditions and predictions of future economic
conditions, and passes default risk exposure and future 12 The expected credit loss rate within a month
or the entire duration is calculated as the expected credit loss.
The Group recognises the loss provision made or reversed into profit or loss for the current period.
For debt instruments that are held at fair value and whose changes are included in other comprehensive
income, the Group adjusts other comprehensive income while accounting for impairment losses or gains
in the current profit or loss.
(iii) Derecognition
A financial asset is derecognised when any of the below criteria is met: (1) the contractual rights to
receive the cash flows from the financial asset expire; (2) the financial asset has been transferred
and the Group transfers substantially all the risks and rewards of ownership of the financial asset
to the transferee; or (3) the financial asset has been transferred and the Group has not retained
control of the financial asset, although the Group neither transfers nor retains substantially all the
risks and rewards of ownership of the financial asset.
(b) Financial liabilities
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Financial liabilities are classified as financial liabilities at amortised cost and financial liabilities at
fair value through profit or loss at initial recognition.
The Group's financial liabilities are mainly comprise financial liabilities at amortised cost, including bills
payable, accounts payable, and other payables. This type of financial liability is initially measured at its
fair value after deducting transaction costs, and is subsequently measured using the actual interest rate
method. If the maturity is less than one year (including one year), it is listed as current liabilities; Those
with a maturity of less than one year (including one year) are listed as current liabilities; those with a
maturity of more than one year but due within one year (including one year) from the balance sheet date
are listed as non-current liabilities due within one year. The rest are listed as non-current liabilities.
A financial liability is derecognised or partly derecognised when the underlying present obligation
is discharged or partly discharged. The difference between the carrying amount of
the derecognised part of the financial liability and the consideration paid is recognised in profit or loss
for the current period.
(c) Determination of fair value of financial instruments
The fair value of a financial instrument that is traded in an active market is determined at the
quoted price in the active market. The fair value of a financial instrument that is not traded in an
active market is determined by using a valuation technique. In valuation, the Group adopts valuation
techniques applicable in the current situation and supported by adequate available data and
other information, selects inputs with the same characteristics as those of assets or liabilities
considered in relevant transactions of assets or liabilities by market participants, and gives
priority to the use of relevant observable inputs. When relevant observable inputs are not available
or feasible, unobservable inputs are adopted.
(10) Inventories
(a) Classification
Inventories refer to manufacturing sector, including raw materials, work in progress, finished goods and
turnover materials, and are measured at the lower of cost and net realisable value.
(b) Issued Inventory costing method
Cost is determined using the weighted average method. The cost of finished goods and work in progress
comprise raw materials, direct labour and systematically allocated production overhead based on the
normal production capacity.
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(10) Inventories (Cont’d)
(c) Amortisation methods of low value consumables and packaging materials
Turnover materials include low value consumables and packaging materials, which are expensed when
issued.
(d) The determination of net realisable value and the method of provision for decline in the value of
inventories
Provision for decline in the value of inventories is determined at the excess amount of book values of
the inventories over their net realisable value. Net realisable value is determined based on the estimated
selling price in the ordinary course of business, less the estimated costs to completion and estimated
costs necessary to make the sale and related taxes.
(e) The Group adopts the perpetual inventory system.
(11) Long-term equity investments
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Long-term equity investments comprise the Company’s long-term equity investments in its subsidiaries,
and the Group’s long-term equity investments in its associates.
Subsidiaries are the investees over which the Company is able to exercise control. Associates are the
investees that the Group has significant influence on their financial and operating policies.
Investments in subsidiaries are measured using the cost method in the Company’s financial statements,
and adjusted by using the equity method when preparing the consolidated financial statements.
Investments in associates are accounted for using the equity method.
(a) Initial recognition of investment cost
For long-term equity investments formed in business combination: when obtained from business
combinations involving entities under common control, the long-term equity investment is stated at
carrying amount of equity for the combined parties at the time of merger; when the long-term equity
investment obtained from business combinations involving entities not under common control, the
investment is measured at combination cost.
For long-term equity investments not formed in business combination: the one paid by cash is initially
measured at actual purchase price; the long-term investment obtained by issuing equity securities is
stated at fair value of equity securities as initial investment cost..
(b) Subsequent measurement and recognition of related profit or loss
For long-term equity investments accounted for using the cost method, they are measured at the initial
investment costs, and cash dividends or profit distribution declared by the investees are recognised as
investment income in profit or loss.
For long-term equity investments accounted for using the equity method, where the initial investment
cost of a long-term equity investment exceeds the Group’s share of the fair value of the investee’s
identifiable net assets at the acquisition date, the long-term equity investment is measured at the initial
investment cost; where the initial investment cost is less than the Group’s share of the fair value of the
investee’s identifiable net assets at the acquisition date, the difference is included in profit or loss and
the cost of the long-term equity investment is adjusted upwards accordingly.
Under the equity method, the Group recognises the investment income according to its share of net
profit or loss of the investee. The Group discontinues recognising its share of the net losses of an
investee after book values of the long-term equity investment together with any long-term interests that
in substance form part of the investor’s net investment in the investee are reduced to zero. However, if
the Group has obligations for additional losses and the criteria with respect to recognition of provisions
under the accounting standards on contingencies are satisfied, the Group continues recognising the
investment losses and the provisions. For changes in owners’ equity of the investee other than those
arising from its net profit or loss, its proportionate share is directly recorded into capital surplus, provided
that the proportion of the shareholding of the Group in the investee remains unchanged. Book value of
the investment is reduced by the Group’s share of the profit distribution or cash dividends declared by
an investee. The unrealised profits or losses arising from the intra-group transactions amongst the
Group and its investees are eliminated in proportion to the Group’s equity interest in the investees, and
then based on which the investment gains or losses are recognised. Any losses resulting from
transactions between the Group and its investees attributable to asset impairment losses are not
eliminated.
(c) Basis for determining existence of control, jointly control or significant influence over investees
The term "control" refers to the power in the investees, to obtain variable returns by participating in the
related business activities of the investees, and the ability to affect the returns by exercising its power
over the investees.
The term "significant influence" refers to the power to participate in the formulation of financial and
operating policies of an enterprise, but not the power to control, or jointly control, the formulation of such
policies with other parties.
(d) Impairment of long-term equity investments
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Book value of long-term equity investments in subsidiaries and associates is reduced to the recoverable
amount when the recoverable amount is less than book value.
(12) Investment property
Investment property includes leased land use rights, land use rights held and provided for to transfer
after appreciation and leased building and construction.
Investment properties are initially measured at acquisition cost. The cost of outsourcing Investment
property includes the purchase price, relevant taxes and other expenditures that can be directly
attributable to the asset; the cost of self-built Investment property is determined by the construction of
the asset. The composition of the necessary expenditures incurred before the usable state.
Investment property adopts the fair value model for subsequent measurement without depreciation or
amortization. On the balance sheet date, the book value of the investment properties are initially
measured at acquisition cost is adjusted based on the fair value of the investment properties are initially
measured at acquisition cost. The difference between the fair value and the original book value will be
calculated into the current profit and loss.
When the use of an Investment property is changed to self-use, the investment property is converted
into fixed assets or intangible assets from the date of change, and the book value and fair value of the
fixed assets and intangible assets are determined based on the fair value of the investment property on
the conversion date. The difference with the original book value of the investment property is included
in the current profit and loss. When the purpose of self-use real estate is changed to earning rent or
capital appreciation, from the date of change, the fixed assets or intangible assets are converted into
investment properties are initially measured at acquisition cost, and the fair value on the day of
conversion is used as the book value of the investment properties are initially measured at acquisition
cost, and the fair value on the day of conversion If the value is less than the original book value of fixed
assets and intangible assets, the difference is included in the current profit and loss. If the fair value on
the day of conversion is greater than the original book value of fixed assets and intangible assets, the
difference is included in other comprehensive income.
When an investment property is disposed of or permanently withdrawn from use and it is expected that
no economic benefits can be obtained from its disposal, the confirmation of the investment real estate
shall be terminated. The disposal income from the sale, transfer, scrapping or destruction of investment
real estate shall deduct its book value and relevant taxes and shall be included in the current profits and
losses. If there is an amount included in other comprehensive income on the original conversion date, it
will also be carried forward and included in the current profit and loss.
(13) 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 probably flow to
the Group and the costs can be reliably measured. Fixed assets purchased or constructed by the Group
are initially measured at cost at the acquisition date.
Subsequent expenditures incurred for a fixed asset are included in the cost of the fixed asset when it is
probable that the associated economic benefits will flow to the Group and the related cost can be reliably
measured. Book value of the replaced part is 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 life average 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 Book value over their remaining useful lives.
The estimated useful lives, the estimated net residual values expressed as a percentage of cost and the
annual depreciation rates of fixed assets are as follows:
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Estimated useful lives Estimated net residual value Annual depreciation rate
Buildings 20 to 35 years 5% 2.71% to 4.75%
Machinery and equipment 8 to 20 years 5% 4.75% to 11.88%
Transportation and others 5 to 8 years 0% 12.50% to 20.00%
The estimated useful life, the estimated net residual value of a fixed asset and the depreciation method
applied to the asset are reviewed, and adjusted as appropriate at each year-end.
(c) Book value of a fixed asset is reduced to the recoverable amount when the recoverable amount is below
book value.
(d) Disposal
A fixed asset is derecognised 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 recognised in profit or loss for
the current period.
(14) 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.
(15) 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 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.
(16) Intangible assets
Intangible assets, mainly including land use rights, patents and proprietary technologies, exploitation
rights and others, are measured at cost.
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CSG Annual Report 2021
(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 year-end, with adjustment made as appropriate.
(e) Research and development
The expenditure on an internal research and development project is classified into expenditure on the
research phase and expenditure on the development phase based on its nature and whether there is
material uncertainty that the research and development activities can form an intangible asset at end of
the project.
Expenditure on the research phase related to planned survey, evaluation and selection for research on
manufacturing technique is recognised in profit or loss in the period in which it is incurred. Prior to mass
production, expenditure on the development phase related to the design and testing phase in regards
to the final application of manufacturing technique is capitalised only if all of the following conditions are
satisfied:
the development of manufacturing technique has been fully demonstrated by technical team;
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 technique and capital to support the development of manufacturing
technology and subsequent mass production; and the expenditure on manufacturing technology
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.
(f) Impairment of intangible assets
Book value of intangible assets is reduced to the recoverable amount when the recoverable amount is
below book value.
(17) Long-term prepaid expenses
Long-term prepaid expenses include the expenditures that have been incurred but should be recognised
as expenses over more than one year in the current and subsequent periods. Long-term prepaid
expenses are amortised on the straight-line basis over the expected beneficial period and are presented
at actual expenditure net of accumulated amortisation.
(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
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assets may be impaired on the balance sheet date; intangible assets not ready for their intended use
are tested at least annually for impairment, irrespective of whether there is any indication that they may
be impaired. If the result of the impairment test indicates that the recoverable amount of an asset is less
than its carrying amount, a provision for impairment and an impairment loss are recognised for the
amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount
is the higher of an asset’s fair value less costs to sell and the present value of the future cash flows
expected to be derived from the asset. Provision for asset impairment is determined and recognised on
the individual asset basis. If it is not possible to estimate the recoverable amount of an individual asset,
the recoverable amount of a group of assets to which the asset belongs is determined. A group of assets
is the smallest group of assets that is able to generate independent cash inflows.
Goodwill that 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 book value, 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) Employee benefits
Employee benefits include short-term employee benefits, post-employment benefits, termination
benefits and other long-term employee benefits provided in various forms of consideration in exchange
for service rendered by employees or compensations for the termination of employment relationship.
(a) Short-term employee benefits
Short-term employee benefits include wages or salaries, bonuses, allowances and subsidies, staff
welfare, medical care, work injury insurance, maternity insurance, housing funds, labour union funds,
employee education funds and paid short-term leave, etc. The employee benefit liabilities are
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.
(b) Post-employment benefits
The Group classifies post-employment benefit plans as either defined contribution plans or defined
benefit plans. Defined contribution plans are post-employment benefit plans under which the Group pays
fixed contributions into a separate fund and will have no obligation to pay further contributions; and
defined benefit plans are post-employment benefit plans other than defined contribution plans. During
the reporting period, the Group's post-employment benefits mainly include basic pensions and
unemployment insurance, both of which belong to the defined contribution plans.
(c) Basic pensions
The Group’s employees participate in the basic pension plan set up and administered by local authorities
of Ministry of Human Resource and Social Security. Monthly payments of premiums on the basic
pensions are calculated according to prescribed bases and percentage by the relevant local authorities.
When employees retire, local labour and social security institutions have a duty to pay the basic pension
insurance to them. The amounts based on the above calculations are 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.
(d) Termination benefits
The Group provides compensation for terminating the employment relationship with employees before
the end of the employment contracts or as an offer to encourage employees to accept voluntary
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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.
(20) Dividend distribution
Cash dividend is recognised as a liability for the period in which the dividend is approved by the
shareholders’ meeting.
(21) Deferred tax assets and deferred tax liabilities
Deferred tax assets and deferred tax liabilities are calculated and recognised based on the differences
arising between the tax bases of assets and liabilities and their carrying amounts (temporary differences).
Deferred tax asset is recognised for the deductible losses that can be carried forward to subsequent
years for deduction of the taxable profit in accordance with the tax laws. No deferred tax liability is
recognised for a temporary difference arising from the initial recognition of goodwill. No deferred tax
asset or deferred tax liability is recognised for the temporary differences resulting from the initial
recognition of assets or liabilities due to a transaction other than a business combination, which affects
neither accounting profit nor taxable profit (or deductible loss). At the balance sheet date, deferred tax
assets and deferred tax liabilities are measured at the tax rates that are expected to apply to the period
when the asset is realised or the liability is settled.
Deferred tax assets are only recognised for deductible temporary differences, deductible losses and tax
credits to the extent that it is probable that taxable profit will be available in the future against which the
deductible temporary differences, deductible losses and tax credits can be utilised.
Deferred tax liabilities are recognised for temporary differences arising from investments in subsidiaries
and associates, except where the Group is able to control the timing of reversal of the temporary
difference, and it is probable that the temporary difference will not reverse in the foreseeable future.
When it is probable that the temporary differences arising from investments in subsidiaries and
associates will be reversed in the foreseeable future and that the taxable profit will be available in the
future against which the temporary differences can be utilised, the corresponding deferred tax assets
are recognised.
Deferred tax assets and liabilities that meet the following conditions at the same time are listed as the
net amount after offset:
Deferred income tax assets and deferred income tax liabilities are related to the same tax payer
within the Group and the same taxation authority; and,
That tax entity within the Group has a legally enforceable right to offset current tax assets against
current tax 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 optionstock option plan is the equity-settled
share-based payment in exchange of employees' services and is measured at the fair value of the equity
instruments at grant date. The equity instruments are exercisable after services in vesting period are
completed or specified performance conditions are met. In the vesting period, the services obtained in
current period are included in relevant cost and expenses at the fair value of the equity instruments at
grant date based on the best estimate of the number of exercisable equity instruments, and capital
surplus is increased accordingly. The Group makes the best estimate of the number of vesting equity
instruments based on the latest obtained changes in the number of vested employees, whether the
required performance conditions are met, and other follow-up information. If the subsequent information
indicates the number of exercisable equity instruments differs from the previous estimate, an adjustment
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is made and, on the exercise date, the estimate is revised to equal the number of actual vested equity
instruments.
In the period at which performance conditions and term of service are met, the relevant cost and
expenses of equity-settled payment should be recognized, and capital surplus is increased accordingly.
Before the exercise date, the accruing amounts of equity-settled payments on balance sheet date reflect
the part of expired waiting period and optimal estimation for the number of the Company final vested
equity instruments.
If the non-market conditions and term of service are not met so that share-based payment fail to exercise,
the costs and expenses on this portion should not be recognized. If the share-
based payment agreement sets out the market conditions and term of non-vesting, as long as
performance conditions and term of service are met, it is should be regard as exercisable right, no matter
the market conditions and non-vesting conditions are meet or not.
If the terms of equity-settled payment are modified, at least the service is confirmed in accordance with
the unmodified terms. In addition, the increase of the fair value of the authorized equity instruments, or
the beneficial changes to the employees on the modification date, the increase of service are confirmed.
If the equity-settled payment is cancelled, the cancellation date shall be deemed as an expedited
exercise, and the unconfirmed amount shall be confirmed immediately. If the employee or other party is
able to choose to meet the non-vesting conditions but not satisfied in the waiting period, equity-settled
payment should be cancelled. But if a new equity instrument is granted, and the new equity instrument
is confirm to replace the old equity instrument which is canceled in the authorization date of the new
equity instrument, the new equity instrument should be disposed by using the same conditions and
terms of the old equity instrument for modifications.
(23) Revenue recognition
The Group recognises revenue at the consideration that the Group is entitled to charge as expected
when the Group has fulfilled the performance obligations in the contract, that is, the customer obtains
control over relevant goods or services.
(a) Sales of goods
The Group mainly sells flat and engineering glass, products related to solar energy, and electronic glass
and displays. For domestic sales, the Group delivers the products to a certain place specified in the
contract. When the buyer takes over the goods, the Group 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. The credit period
granted by the Group to customers is determined based on the customer's credit risk characteristics,
consistent with industry practices, and there is no major financing component. The Group’s obligation
to transfer goods to customers for consideration received or receivable from customers is listed as
contract liabilities.
Revenue is presented as the net amount after deducting sales discounts and sales returns.
(b) Rendering of services
The Group provides external consulting, loading, unloading, transportation and processing labor
services, and recognizes revenue within a period of time based on the progress of the completed labor.
The progress of the completed labor is determined according to the proportion of the cost incurred to
the estimated total cost. On the balance sheet date, the Group re-estimates the progress of completed
labor services so that it can reflect changes in contract performance.
When the Group recognizes revenue based on the performance progress of the completed labor
services, the portion for which the Group has obtained the unconditional right to receive payments is
recognized as accounts receivable, and the remaining portion is recognized as contract assets, and the
Company measures the loss reserve of accounts receivable and contract assets. according to the
expected credit loss; If the contract price received or receivable by the Group exceeds the completed
progress, the excess is recognized as contract liabilities. The Group presents the contract assets and
contract liabilities under the same contract as a net amount.
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(24) 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 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.
(25) 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 recognised when there is a reasonable assurance that the grants will be received
and the Group will comply with all attached conditions. Monetary government grants are
measured at the amounts received or receivable. Non-monetary government grant are measured at fair
value, if the fair value cannot be reliably obtained, it is measured at nominal amount.
The government grants related to assets refer to government grant obtained by enterprises and used
for purchase and construction of long-term assets or formation of long-term asset in other ways. The
government grants related to income refer to grants other than those related to assets.
For government grants related to income, where the grant is a compensation for related expenses or
losses to be incurred by the Group in the subsequent periods, the grant is recognised as deferred income,
and included in profit or loss over the periods in which the related costs are recognised; where the grant
is a compensation for related expenses or losses already incurred by the Group, the grant is recognised
immediately in profit or loss for the current period. The company use the same method of presentation
for similar government grants.
The ordinary activitiy government grants should be counted into operating profits; the government grants
which not belong ordinary activities should be counted into non-operating income.
(26) Leases
A leasing is a contract in which the lessor cedes the right to use an asset to the lessee for a certain
period of time in return for consideration.
(a) The Group acts as the lessee
The Company recognizes the right-of-use assets on the commencement date of the lease term and
recognizes the lease liabilities at the present value of the outstanding lease payments. The lease
payments include fixed payments, as well as payments where there is reasonable certainty that a
purchase option will be exercised or a lease option will be terminated. The variable rent determined
based on a certain percentage of sales is not included in the lease payment, and is included in the
current profit and loss when it actually occurs. The Group will list the non-liabilities within one year that
lease liabilities will be paid one year. from the balance sheet date.
On the commencement date, the Company shall initially measure the right-of-use asset at cost. The
cost of the right-of-use asset shall comprise the amount of the initial measurement of the lease liability
and any lease payments made at or before the commencement date, and any initial direct costs incurred
by the lessee etc, less any lease incentives received, If ownership of the leased asset transfers to the
Group at the end of the lease term, depreciation is calculated using the estimated useful life of the asset.
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CSG Annual Report 2021
Otherwise, the right-of-use assets are depreciated over the shorter of the lease term and the estimated
useful lives of the assets. Where the carrying amount of an asset or a cash generating unit exceeds its
recoverable amount, the asset or cash generating unit is considered impaired and is written down to its
recoverable amount.
A short-term lease is a lease that, at the commencement date, has a lease term of 12 months or less,
and has a low-value asset leases. The Group does not recognize the right-of-use assets and lease
liabilities. The Group recognizes lease payments on short-term leases and leases of low-value assets
in the related asset costs or profit or loss on a straight-line basis over the lease term.
The Group accounts for a lease modification as a separate lease if both:(1) the modification increases
the scope of the lease by adding the right to use one or more underlying assets; (2) the consideration
for the lease increases by an amount commensurate with the stand-alone price for the increase in scope
and any appropriate adjustments to that stand-alone price to reflect the circumstances of the particular
contract.
For a lease modification that is not accounted for as a separate lease, at the effective date of the lease
modification the Group remeasures the lease liability by discounting the revised lease payments using
a revised discount rate. Decreasing the carrying amount of the right-of-use asset to reflect the partial or
full termination of the lease for lease modifications that decrease the scope of the lease. The Group
recognizes in profit or loss any gain or loss relating to the partial or full termination of the lease. Other
lease modifications will remeasure lease liabilities, and the group will make a corresponding adjustment
to the right-of-use asset book value.
(b) The Group acts as the lessor
A lease that transfers substantially all the risks and rewards associated with the ownership of the leased
asset is a finance lease. Other leases are operating leases.
(i) Operating lease
When the Company operates leased buildings, machinery and equipment, and means of transport, the
rental income from operating leases shall be recognized in accordance with the straight-line method
during the lease term. The Company will include variable rent determined based on a percentage of
sales in rental income when it actually incurs. For any modification to an operating lease, the Group
treats it as a new lease from the effective date of the modification, and the received or receivable lease
payments related to the lease prior to the modification are treated as lease payments of the new lease.
(ii) Finance lease
On the beginning date of the lease term, the Company recognizes the finance lease receivables for
finance leases and derecognizes related assets. The Company presents the finance lease receivables
as long-term receivables, and the finance lease receivables received within one year (including one year)
from the balance sheet date are presented as non-current assets due within one year.
(27) Assets classified as held for sale
A non-current asset or a disposal group is classified as held for sale when all of the following conditions
are satisfied: (1) the non-current asset or the disposal group is available for immediate sale in its present
condition subject to terms that are traditionally and customary for sales; (2) the Group has made a
resolution and obtained appropriate approval for disposal of the non-current asset or the disposal group,
and the transfer is to be completed within one year.
Non-current assets (except for financial assets, investment properties at fair value and deferred tax
assets) that meet the recognition criteria for held for sale are recognised at the amount equal to the
lower of the fair value less costs to sell and book value. The difference between fair value less costs to
sell and carrying amount, should be presented as impairment loss.
Such non-current assets and assets included in disposal groups as classified as held for sale are
accounted for as current assets; while liabilities included in disposal groups classified as held for sale
are accounted for as current liabilities, and are presented separately in the balance sheet.
A discontinued operation is a component of the Group that either has been disposed of or is classified
as held for sale, and is separately identifiable operationally and for financial reporting purposes, and
satisfies one of the following conditions: (1) represents a separate major line of business or geographical
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area of operations; (2) is part of a single coordinated plan to dispose of a separate major line of business
or geographical area of operations; and (3) is a subsidiary acquired exclusively with a view to resale.
The discontinued operation profits on income statement presentation have included the profits and loss
of operation and disposal.
(28) 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 is mainly used for the overhaul, renewal and maintenance of safety facilities.
The safety production costs are charged to costs of related products or profit 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 recognised. The fixed assets are no longer
be depreciated in future.
(29) Segment information
The Group identifies operating segments based on the internal organisation structure, management
requirements and internal reporting system, and discloses segment information of reportable segments
which is determined on the basis of operating segments.
An operating segment is a component of the Group that satisfies all of the following conditions: (1) the
component is able to earn 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.
(30) Critical accounting estimates and judgements
The Group continually Estimates the critical accounting estimates and key assumptions applied based
on historical experience and other factors, including expectations of future events that are believed to
be reasonable.
The critical accounting estimates and key assumptions that have a significant risk of possibly causing a
material adjustment to book values of assets and liabilities within the next accounting year are outlined
below:
(a) Income tax
The Group is subject to Income tax in numerous jurisdictions. There are some transactions and events
for which the ultimate tax determination is uncertain during the ordinary course of business. Significant
judgement is required from the Group in determining the provision for Income tax in each of these
jurisdictions. Where the final identified outcome of these tax matters is different from the initially-
recorded amount, such difference will impact the income tax expenses and deferred income tax in the
period in which such determination is finally made.
(b) Deferred income tax
Estimates on deferred tax assets are based on estimates on amount of taxable income and applicable
tax rate for every year. Realisation of deferred income tax are subject to sufficient taxable income that
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CSG Annual Report 2021
are 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 on 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.
(31) Significant changes in accounting policies and accounting estimates
In Dec 2018, the Ministry of Finance issued the revised “CAS No. 21—Leases” (hereinafter, the “New
Leases Standard”. The Group has adopted the New Leases Standard since 1 January 2021. For
contracts signed prior to the date of initial application, the Group did not reassess whether they were, or
contained, a lease. The Group choose to adjust the balance of retained earnings and other related items
in the financial statements at the beginning of the year of initial adoption of such standard based on the
cumulative effect of initial adoption of such standard, with no adjustment to the information for the
comparable period. The impact of the implementation of the New Leases Standard changes on the
financial statements is as follows:
(a) Leases
Item December 31,2020 January 1,2021 Effected amount
Long-term prepaid expenses 10,381,937 741,179 (9,640,758)
Right-of-use assets - 11,538,741 11,538,741
Current portion of non-current
927,531,709 928,352,462 820,753
liabilities
Lease liability - 1,077,230 1,077,230
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CSG Annual Report 2021
Implementation of the new leasing standard has no impact on the relevant items of Parent financial
statements at the beginning of the year of 2021.
3 Taxation
(1) The main categories and rates of taxes applicable to the Group are set out below:
Category Taxable basis Tax rate
Enterprise income tax Taxable income 0% to 25%
Value-added tax (“VAT”) (a) Taxable value-added amount (Tax payable is 1% to 13%
calculated using the taxable sales amount multiplied
by the applicable tax rate less deductible VAT input
of the current period)
City maintenance and VAT paid 1% to 7%
construction tax
Educational surcharge VAT paid 5%
Some subsidiaries of the Group have used the “exempt, credit, refund” method on goods exported and
the refund rate is 0%-13%.
(2) Tax incentives
The main tax incentives the Group is entitled to are as follows:
Tianjin CSG Energy-Saving Glass Co., Ltd. (“Tianjin Energy Conservation”) passed review on a high
and new tech enterprise in 2021 and obtained the Certificate of High and New Tech Enterprise, the
period of validity is three years. It applies to 15% tax rate for three years since 2021.
Dongguan CSG Architectural Glass Co., Ltd. (“Dongguan CSG”) passed review on a high and new tech
enterprise in 2019 and obtained the Certificate of High and New Tech Enterprise, the period of validity
is three years. It applies to 15% tax rate for three years since 2019.
Wujiang CSG East China Architectural Glass Co., Ltd. (“Wujiang CSG Engineering”) passed review on
a high and new tech enterprise in 2020 and obtained the Certificate of High and New Tech Enterprise,
the period of validity is three years. It applies to 15% tax rate for three years since 2020.
Dongguan CSG Solar Glass Co., Ltd. (“Dongguan CSG Solar”) passed review on a high and new tech
enterprise in 2020 and obtained the Certificate of High and New Tech Enterprise, the period of validity
is three years. It applies to 15% tax rate for three years since 2020.
Yichang CSG Polysilicon Co., Ltd. (“Yichang CSG Polysilicon”) passed review on a high and new tech
enterprise in 2020 and obtained the Certificate of High and New Tech Enterprise, the period of validity
is three years. It applies to 15% tax rate for three years since 2020.
Dongguan CSG PV-tech Co., Ltd. (“Dongguan CSG PV-tech”) passed review on a high and new tech
enterprise in 2019 and obtained the Certificate of High and New Tech Enterprise, the period of validity
is three years. It applies to 15% tax rate for three years since 2019.
Hebei Shichuang Glass Co., Ltd. (“Hebei Shichuang”) passed review on a high and new tech enterprise
in 2019 and obtained the Certificate of High and New Tech Enterprise, the period of validity is three
years. It applies to 15% tax rate for three years since 2019.
Wujiang CSG Glass Co., Ltd. (“Wujiang CSG”) passed review on a high and new tech enterprise in 2020,
and obtained the Certificate of High and New Tech Enterprise, and the period of validity was three years.
It applies to 15% tax rate for three years since 2020.
Xianning CSG Glass Co Ltd. (“Xianning CSG”) passed review on a high and new tech enterprise in 2020,
and obtained the Certificate of High and New Tech Enterprise, and the period of validity was three years.
It applies to 15% tax rate for three years since 2020.
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CSG Annual Report 2021
Xianning CSG Energy-Saving Glass Co., Ltd. (“Xianning CSG Energy-Saving”) passed review on a high
and new tech enterprise in 2021, and obtained the Certificate of High and New Tech Enterprise, and the
period of validity was three years. It applies to 15% tax rate for three years since 2021.
Yichang CSG Photoelectric Glass Co., Ltd. (“Yichang CSG Photoelectric”) passed review on a high and
new tech enterprise in 2021, and obtained the Certificate of High and New Tech Enterprise, and the
period of validity was three years. It applies to 15% tax rate for three years since 2021.
Yichang CSG Display Co., Ltd (“Yichang CSG Display”) passed review on a high and new tech
enterprisein 2021, and obtained the Certificate of High and New Tech Enterprise, and the period of
validity was three years. It applies to 15% tax rate for three years since 2021.
Qingyuan CSG New Energy-Saving Materials Co., Ltd. (“Qingyuan CSG Energy-Saving”) passed
review on a high and new tech enterprise in 2019, and obtained the Certificate of High and New Tech
Enterprise, and the period of validity was three years. It applies to 15% tax rate for three years since
2019.
Hebei CSG Glass Co Ltd. (“Hebei CSG”) passed review on a high and new tech enterprise in 2021, and
obtained the Certificate of High and New Tech Enterprise, and the period of validity was three years. It
applies to 15% tax rate for three years since 2021.
Shenzhen CSG Applied Technology Co Ltd. (“Shenzhen Technology”) passed review on a high and
new tech enterprise in 2021, and obtained the Certificate of High and New Tech Enterprise, and the
period of validity was three years. It applies to 15% tax rate for three years since 2021.
Dongguan CSG Crystal Yuxin Materials Co., Ltd. (“Dongguan Jing Yu Company”) passed review on a
high and new tech enterprise in 2021 and obtained the Certificate of High and New Tech Enterprise, the
period of validity is three years. It applies to 15% tax rate for three years since 2021.
Xianning CSG Photoelectric Glass Co., Ltd. (“Xianning Photoelectric”) passed review on a high and new
tech enterprise in 2019 and obtained the Certificate of High and New Tech Enterprise, the period of
validity is three years. It applies to 15% tax rate for three years since 2019.
Sichuan CSG Energy Conservation Glass Co., Ltd. (“Sichuan CSG Energy Conservation”) obtains
enterprise income tax preferential treatment for Western Development, and temporarily calculates
enterprise income tax at a tax rate of 15% for current year.
Chengdu CSG Glass Co., Ltd. (“Chengdu CSG”) obtains enterprise income tax preferential treatment
for Western Development, and temporarily calculates enterprise income tax at a tax rate of 15% for
current year.
Xian CSG Energy Conservation Glass Co., Ltd. (“Xian CSG Energy Conservation”) obtains enterprise
income tax preferential treatment for Western Development, and temporarily calculates enterprise
income tax at a tax rate of 15% for current year.
Yichang CSG New Energy Co., Ltd. (“Yichang CSG New Energy”), Zhangzhou CSG Kibing PV Energy
Co., Ltd. (“Zhangzhou CSG PV Energy”), Heyuang CSG Kibing PV Energy Co., Ltd. (“Heyang CSG”),
and Shaoxing CSG Kibing New Energy Co., Ltd. (“Shaoxing CSG New Energy”), Xianning CSG PV
Energy Co., Ltd. (“Xianning PV Energy”), Zhanjiang CSG New Energy Co., Ltd. (“Zhanjiang PV Energy”),
are public infrastructure project specially supported by the state in accordance with the Article 87 in
Implementing Regulations of the Law of the People's Republic of China on Enterprise Income Tax, and
can enjoy the tax preferential policy of “three-year exemptions and three-year halves”, that is, starting
from the tax year when the first revenue from production and operation occurs, the enterprise income
tax is exempted from the first to the third year, while half of the enterprise income tax is collected for the
following three years.
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CSG Annual Report 2021
4 Notes to the consolidated financial statements
(1) Cash at bank and on hand
31 December 2021 31 December 2020
Cash on hand - 2,725
Cash at bank 2,453,477,573 1,463,954,484
Other cash balances 312,448,333 661,831,694
2,765,925,906 2,125,788,903
Including: Total overseas deposits 8,906,359 8,610,575
Other cash balances include margin deposits etc, amounting to RMB 9,448,334 (31 December 2020:
RMB1,760,707), which is restricted cash.
(2) Financial assets held for trading
31 December 2021 31 December 2020
Financial assets at fair value through profit or loss
-Structural deposits 999,600,000 -
999,600,000 -
(3) Notes receivable
31 December 2021 31 December 2020
Trade acceptance notes 39,999,790 207,966,892
Less: Provision for bad debts (20,778,806) -
19,220,984 207,966,892
(a) As at 31 December 2021, notes receivable which have been endorsed or discounted by the Group but
are not yet due are as follows:
Derecognised Not derecognised
Trade acceptance notes - 1,000,000
(b) Notes receivable are analysed by category as follows：
31 December 2021 31 December 2020
Carrying amount Provision for bad debts Carrying amount Provision for bad debts
% of total Provision for bad % of total Provision for bad
Amount balance debts % Amount balance debts %
Provision for bad debts by
groupings
Portfolio 2 11,561,541 29% - - 207,966,892 100% - -
Provided for bad bebts
individually 28,438,249 71% (20,778,806) 73% - - - -
39,999,790 100% (20,778,806) 52% 207,966,892 100% - -
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CSG Annual Report 2021
(c) As at 31 December 2021, the bad debts of receivables was RMB 28,438,249 (31 December 2020: RMB
Nil ) that to be provided individually. It mainly represented trade acceptance notes due from evergrande
of the part of subsidiary, due to difficult to pay or deterioration of cash operations, the provision for bad
debts was fully or partially accrued.
(d) Notes receivable transferred to accounts receivable by the Group due to the drawer's non-performance
at the end of the period：
31 December 2021 31 December 2020
Trade acceptance notes 109,148,796 -
109,148,796 -
(4) Accounts receivable
31 December 2021 31 December 2020
Accounts receivable 847,850,664 714,849,669
Less: Provision for bad debts (117,324,977) (33,382,536)
730,525,687 681,467,133
(a) The ageing of accounts receivable is analysed as follows:
31 December 2021 31 December 2020
Within 1 year 707,668,488 613,693,950
1 to 2 years 57,430,422 51,071,700
2 to 3 years 43,952,579 30,876,459
Over 3 years 38,799,175 19,207,560
847,850,664 714,849,669
(b) Accounts receivable are analysed by category as follows:
31 December 2021 31 December 2020
Carrying amount Provision for bad debts Carrying amount Provision for bad debts
% of total Provision for % of total Provision for
Amount balance bad debts % Amount balance bad debts %
Provision for bad debts by
groupings
Portfolio 1 687,880,646 81% (13,757,613) 2% 682,344,324 95% (13,641,135) 2%
Portfolio 2 33,525 - (671) 2% 223,200 - (4,464) 2%
Provided for bad bebts
individually 159,936,493 19% (103,566,693) 65% 32,282,145 5% (19,736,937) 61%
847,850,664 100% (117,324,977) 14% 714,849,669 100% (33,382,536) 5%
(c) For accounts receivable provided for bad debts by portfolio, the expected credit impairment loss for the
portfolio is as follows:
31 December 2021 31 December 2020
Carrying amount Provision for bad debts Carrying amount Provision for bad debts
Amount Amount % Amount Amount %
Portfolio 1 687,880,646 (13,757,613) 2% 682,344,324 (13,641,135) 2%
Portfolio 2 33,525 (671) 2% 223,200 (4,464) 2%
687,914,171 (13,758,284) 2% 682,567,524 (13,645,599) 2%
(d) As at 31 December 2021, the bad debts of receivables was RMB 159,936,493 (31 December 2020:
RMB32,282,145) that to be provided individually. It mainly represented the goods receivable due from
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CSG Annual Report 2021
a client of the part of subsidiary, due to business dispute or deterioration of customer operations, the
provision for bad debts was fully or partially accrued.
(e) Accounts receivables were written off amount of RMB 153,330 for this year, (31 December 2020: RMB
297,202).
(f) As at 31 December 2021, Total balances for the five largest accounts receivable set out as below:
Provision for bad Percentage in total accounts
Balance debts receivable balance
Total balances for the five largest
accounts receivable 221,637,483 (42,071,968) 26%
(5) Receivables Financing
31 December 2021 31 December 2020
Bank acceptance notes 297,046,123 382,527,782
297,046,123 382,527,782
(a) As at 31 December 2021, receivables financing which have been endorsed or discounted by the
Group but are not yet due are as follows:
Derecognised Not derecognised
Bank acceptance notes 2,369,398,907 -
(6) Advances to suppliers
(a) The ageing of prepayment is analysed below:
31 December 2021 31 December 2020
% of total % of total
Amount balance Amount balance
Within 1 year 74,971,763 98% 84,647,719 99%
1 to 2 years 486,849 1% 1,162,756 1%
2 to 3 years 520,498 1% 118,166 -
Over 3 years 118,166 - - -
76,097,276 100% 85,928,641 100%
As at 31 December 2021, advances to suppliers over 1 year with a carrying amount of RMB1,125,513
(31 December 2020: RMB1,280,922) were mainly prepaid to supplier for materials, which were not fully
settled since the materials had not been received.
(b) As at 31 December 2021, the five largest prepayment are analysed as follows:
Percentage in total
advances to
Balance suppliers balance
Total balances for the five largest advances to suppliers 33,857,116 44%
(7) Other receivables
31 December 2021 31 December 2020
Receivables from special fund for talent 171,000,000 171,000,000
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CSG Annual Report 2021
Payments made on behalf of other parties 47,686,819 18,672,346
Advances to suppliers(i) 10,366,164 10,366,164
Refundable deposits 9,191,412 6,723,194
Petty cash 497,273 969,748
Others 8,110,638 9,615,428
246,852,306 217,346,880
Less: Provision for bad debts (63,155,595) (16,377,026)
183,696,711 200,969,854
(i) The subsidiaries of Yingde CBM Mining Co., Ltd. mainly prepaid to supplier for materials.This
year, the prepayments accounts are transferred to other receivables and the provision of the bad
debts was provided individually in current year.
(a) The ageing of other receivables is analysed as follows:
31 December 2021 31 December 2020
Within 1 year 43,535,751 9,644,914
1 to 2 years 3,139,416 5,528,931
2 to 3 years 599,575 4,491,997
3 to 4 years 2,226,669 2,154,911
4 to 5 years 2,060,967 725,287
Over 5 years 195,289,928 194,800,840
246,852,306 217,346,880
(b) Other receivables are analysed by category as follows:
31 December 2021 31 December 2020
Provision for bad
Carrying amount Provision for bad debts Carrying amount debts
% of total Provision for % of total Provision for
Amount balance bad debts % Amount balance bad debts %
Provision for bad debts
by groupings
Portfolio 1 64,955,857 26% (1,162,378) 2% 205,106,845 94% (4,136,991) 2%
Portfolio 2 207,380 - (4,148) 2% - - - -
Provided for bad bebts
individually 181,689,069 74% (61,989,069) 34% 12,240,035 6% (12,240,035) 100%
246,852,306 100% (63,155,595) 26% 217,346,880 100% (16,377,026) 8%
(c) The reason for the bad debts was provided individually as the payment will not be recoverable due to
long aging time.
(d) For other receivables provided for bad debts by portfolio, the expected credit impairment loss for the
portfolio is as follows:
31 December 2021 31 December 2020
Carrying amount Provision for bad debts Carrying amount Provision for bad debts
Amount Amount % Amount Amount %
Portfolio 1 64,955,857 (1,162,378) 2% 205,106,845 (4,136,991) 2%
Portfolio 2 207,380 (4,148) 2% - - -
65,163,237 (1,166,526) 2% 205,106,845 (4,136,991) 2%
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CSG Annual Report 2021
(e) Provision for bad debts
bad debts Stage 1 Stage 2 Stage 3
Expected credit Lifetime expected
Lifetime expected
losses in the credit losses
credit losses Total
following 12 (credit
(credit unimpaired)
months (grouping) impaired)）
1 January 2021 4,136,991 - 12,240,035 16,377,026
Amounts in current year - - - -
——Transferred stage 2 - - - -
——Transferred stage 3 (3,420,000) - 3,420,000 -
—— Reversed stage 2 - - - -
—— Reversed stage 1 - - - -
Increased in current year 725,965 - 48,570,325 49,296,290
Reversed in current year (276,430) - - (276,430)
Write-off in current year - - (2,241,291) (2,241,291)
31 December 2021 1,166,526 - 61,989,069 63,155,595
(f) As at 31 December 2021, the top 5 largest other receivables are analysed as bellow:
Percentage in total
other receivables Provision for
Nature of business Balance Ageing balance bad debts
Company A Independent third party 171,000,000 Over 5Years 69% (51,300,000)
Governmental
departmentB Independent third party 24,000,000 Within 1 year 10% (480,000)
Governmental
departmentC Independent third party 11,556,004 Over 5Years 5% (231,120)
Company D Independent third party 10,366,164 Over 5Years 4% (10,366,164)
Company E Independent third party 5,570,340 Within 1 year 2% (111,407)
222,492,508 90% (62,488,691)
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CSG Annual Report 2021
(8) Inventories
(a) Inventories are summarised by category as follows:
31 December 2021 31 December 2020
Provision for Provision for
decline in the decline in the
value of value of
Carrying amount inventories Book value Carrying amount inventories Book value
Raw materials 389,937,319 (1,002,085) 388,935,234 274,659,097 (1,756,185) 272,902,912
Work in progress 22,801,437 - 22,801,437 28,355,865 - 28,355,865
Finished goods 632,814,981 (5,829,059) 626,985,922 479,482,759 (9,369,218) 470,113,541
Turnover materials 55,480,764 (397,832) 55,082,932 44,603,984 (819,984) 43,784,000
1,101,034,501 (7,228,976) 1,093,805,525 827,101,705 (11,945,387) 815,156,318
(b) Provision for decline in the value of inventories are analysed as follows:
31 December 31 December
2020 Increase in current year Reversal in current year 2021
Raw materials 1,756,185 - (754,100) 1,002,085
Finished goods 9,369,218 4,311,293 (7,851,452) 5,829,059
Turnover materials 819,984 133,290 (555,442) 397,832
11,945,387 4,444,583 (9,160,994) 7,228,976
(c) Provision for decline in the value of inventories is as follows:
Reasons of reversal of the
Basis for provision for decline in the value of decline in the value of
inventories inventories
The drop in product prices results in the difference as
Finished goods the net realizable value is lower than the book value Sold
The amount of book value less net realisable value
Raw materials due to sluggish or damaged raw materials Used
The amount of book value less net realisable
Turnover value
materials due to sluggish or damaged raw materials Used
(9) Other current assets
31 December 2021 31 December 2020
VAT to be offset 128,033,622 110,350,299
Enterprise income tax prepaid 3,771,709 17,508,242
VAT input to be recognised 8,888,295 12,106,681
Others 11,672 66,322
140,705,298 140,031,544
(10) Investment properties
Buildings and Land use rights
31 December 2020 383,084,500
Increased in current year：
- 124 -
CSG Annual Report 2021
Transfer from fixed assets and intangible assets in the
current year -
Fair value movements -
31 December 2021 383,084,500
(i) The company hired a third party evaluation agency with relevant qualifications to evaluate the
Investment properties fair value and there was no changes comparing with the previous year by
31st December 2021.
(11) Fixed assets
Machinery and Motor vehicles
Buildings equipment and others Total
Cost
31 December 2020 3,935,917,690 12,009,950,305 240,065,141 16,185,933,136
Increase in current year
Acquisition 16,071,980 39,251,524 22,774,917 78,098,421
Transfers from
229,633,673 264,782,295 8,824,241 503,240,209
construction in progress
Others 2,035,166 3,461,599 111,529 5,608,294
Decrease in current year
Disposal or retirement (3,194,063) (260,778,969) (13,962,843) (277,935,875)
Transfer to construction in progress - (12,950,777) - (12,950,777)
Others (4,973,213) (3,409,506) (626,971) (9,009,690)
31 December 2021 4,175,491,233 12,040,306,471 257,186,014 16,472,983,718
Accumulated depreciation
31 December 2020 1,000,672,653 4,982,036,862 221,652,650 6,204,362,165
Increase in current year
Provision 129,805,541 741,229,765 22,284,630 893,319,936
Others 400,303 172,724 84,992 658,019
Decrease in current year
Disposal or retirement (1,529,427) (185,718,048) (12,553,353) (199,800,828)
Transfer to construction in progress - (4,683,588) - (4,683,588)
Others - (246,280) (757,576) (1,003,856)
31 December 2021 1,129,349,070 5,532,791,435 230,711,343 6,892,851,848
Provision for impairment loss
31 December 2020 34,966,687 800,882,872 76,843 835,926,402
Increase in current year
Provision 13,540,697 210,148,841 201,732 223,891,270
Transfers from
12,749,513 - - 12,749,513
construction in progress
Decrease in current year
Disposal or retirement (1,355,749) (57,580,667) (13,925) (58,950,341)
Transfer to construction in progress - - - -
31 December 2021 59,901,148 953,451,046 264,650 1,013,616,844
Book value
- 125 -
CSG Annual Report 2021
31 December 2021 2,986,241,015 5,554,063,990 26,210,021 8,566,515,026
31 December 2020 2,900,278,350 6,227,030,571 18,335,648 9,145,644,569
(a) Fixed assets with pending certificates of ownership
Carrying amount Reasons for not yet obtaining certificates of title
Have submitted the required documents and are in the process
Buildings 899,109,506 of application, or the related land use right certificate pending
(12) Construction in progress
31 December 2021 31 December 2020
Provision for Provision for
Carrying amount impairment loss Book value Carrying amount impairment loss Book value
Yichang CSG Polysilicon Technical
Transformation Project 1,535,368,156 (857,890,185) 677,477,971 1,535,667,571 (594,037,334) 941,630,237
Anhui Fengyang Solar Equipment
Lightweight High Tongue Plate
Manufacturing Base Project 765,170,527 - 765,170,527 15,039,984 - 15,039,984
Qingyuan CSG Phase I Technological
Transformation Project 297,932,280 (174,675,600) 123,256,680 413,852,963 - 413,852,963
Zhaoqing CSG high-end energy-saving
glass production line project 279,138,811 - 279,138,811 47,026,508 - 47,026,508
Dongguan Photovoltaic Building B
450MWPERC Battery Technology
Upgrade Project 186,866,743 (184,998,076) 1,868,667 204,801,994 - 204,801,994
Tianjin energy-saving coating
production line purchase and upgrade
project 95,225,037 - 95,225,037 - - -
Xianning CSG 1200T / D Ton
Photovoltaic Packaging Material
Production Line Project 66,449,089 - 66,449,089 - - -
Anhui Fengyang Quartz Sand
Construction Project 56,656,483 - 56,656,483 1,775,552 - 1,775,552
Wujiang Project New Engineering Glass
Intelligent Manufacturing Factory
Construction Project 51,766,295 - 51,766,295 760,313 - 760,313
Wujiang float light-quality high-
efficiency double glass processing
production line construction project 39,032,912 - 39,032,912 3,572,478 - 3,572,478
Sapphire Project for LED 32,420,412 (32,420,412) - 32,420,412 (32,420,412) -
Zhaoqing CSG high-end automobile
glass production line project 27,941,928 - 27,941,928 3,403,090 - 3,403,090
Hebei window ultra-thin electronic glass
second line construction project 24,393,421 - 24,393,421 9,568,451 - 9,568,451
Dongguan solar double-glass extension
technology transformation upgrade
project 2,389,871 - 2,389,871 - - -
Dongguan solar energy processing
production line project 551,795 - 551,795 56,711,889 (12,749,513) 43,962,376
Guangxi Beihai Photovoltaic Green
Energy Industry Park (Phase I) Project 382,997 - 382,997 - - -
Others 275,679,766 (26,293,600) 249,386,166 207,986,665 - 207,986,665
3,737,366,523 (1,276,277,873) 2,461,088,650 2,532,587,870 (639,207,259) 1,893,380,611
- 126 -
CSG Annual Report 2021
(a) Changes in major construction projects
Proportio
n Including:
between Amount of Capitalis
engineeri Amount of borrowing ation rate
Transfer to 31 ng input borrowing costs for in
31 December Increase in fixed assets in Other decreases December and costs capitalised current
Project name Budget 2020 current year current year in current year 2021 budget (i) capitalised in 2021 year Source of fund
Yichang CSG Polysilicon Technical Transformation Project 49,520,000 1,535,667,571 - - (299,415) 1,535,368,156 98% - - - Internal fund and bank loan
Anhui Fengyang Solar Equipment Lightweight High Tongue Plate
Manufacturing Base Project 3,739,020,000 15,039,984 750,130,543 - - 765,170,527 20% 2,445,498 2,445,498 4.33% Internal fund and bank loan
Qingyuan CSG Phase I Technological Transformation Project 534,870,000 413,852,963 8,415,661 (124,336,344) - 297,932,280 3% - - - Internal fund and bank loan
Zhaoqing CSG high-end energy-saving glass production line project 500,000,000 47,026,508 265,610,162 (33,497,859) - 279,138,811 63% 4,154,925 4,064,358 3.80% Internal fund and bank loan
Dongguan Photovoltaic Building B 450MWPERC Battery Technology
Upgrade Project 100,990,000 204,801,994 5,976,556 (23,911,807) - 186,866,743 1% - - - Internal fund and bank loan
Tianjin energy-saving coating production line purchase and upgrade
project 114,945,000 - 95,225,037 - - 95,225,037 83% 1,510,281 1,510,281 4.00% Internal fund and bank loan
Xianning CSG 1200T / D Ton Photovoltaic Packaging Material
Production Line Project 858,090,000 - 66,449,089 - - 66,449,089 8% 5,123,167 5,123,167 5.21% Internal fund and bank loan
Anhui Fengyang Quartz Sand Construction Project 739,990,000 1,775,552 54,880,931 - - 56,656,483 8% 118,364 118,364 4.55% Internal fund and bank loan
Wujiang Project New Engineering Glass Intelligent Manufacturing
Factory Construction Project 179,140,610 760,313 51,005,982 - - 51,766,295 29% 321,094 321,094 3.85% Internal fund and bank loan
Wujiang float light-quality high-efficiency double glass processing
production line construction project 158,850,000 3,572,478 36,829,770 (1,369,336) - 39,032,912 25% 387,956 387,956 4.00% Internal fund and bank loan
Sapphire Project for LED 35,000,000 32,420,412 - - - 32,420,412 93% 4,650,543 - - Internal fund and bank loan
Zhaoqing CSG high-end automobile glass production line project 609,830,000 3,403,090 24,538,838 - - 27,941,928 5% - - - Internal fund and bank loan
Hebei window ultra-thin electronic glass second line construction
project 284,964,800 9,568,451 14,835,899 (10,929) - 24,393,421 9% 379 379 4.35% Internal fund and bank loan
Dongguan solar double-glass extension technology transformation
upgrade project 143,490,000 - 2,389,871 - - 2,389,871 2% - - - Internal fund and bank loan
Dongguan solar energy processing production line project 76,140,000 56,711,889 51,651,067 (107,811,161) - 551,795 75% - - - Internal fund and bank loan
Guangxi Beihai Photovoltaic Green Energy Industry Park (PhaseI)
Project 4,942,051,800 - 382,997 - - 382,997 - - - - Internal fund and bank loan
Others 3,972,228,916 207,986,665 281,331,056 (212,302,773) (1,335,182) 275,679,766 75,810 75,810 Internal fund and bank loan
17,039,121,126 2,532,587,870 1,709,653,459 (503,240,209) (1,634,597) 3,737,366,523 18,788,017 14,046,907
(i) The proportion of project expenditure incurred to the budget is determined by the accumulative expenditures incurred divided by the total budget. Some
of the projects are transferred to property, plant, and equipment because the construction is completed.
- 127 -
CSG Annual Report 2021
(b) Provision for impairment of construction in progress
provision increased Decrease in
Project name 31 December 2020 in current year current year 31 December 2021
Dongguan solar energy processing
production line project 12,749,513 - (12,749,513) -
Sapphire Project for LED 32,420,412 - - 32,420,412
Yichang CSG Polysilicon Technical
Transformation Project 594,037,334 264,134,583 (281,732) 857,890,185
Dongguan Photovoltaic Building B
450MWPERC Battery Technology
Upgrade Project - 184,998,076 - 184,998,076
Qingyuan CSG Phase I Technological
Transformation Project - 174,675,600 - 174,675,600
Others - 26,293,600 - 26,293,600
639,207,259 650,101,859 (13,031,245) 1,276,277,873
- 128 -
CSG HOLDING CO., LTD.
Notes to the financial statements
for the year ended 31 December 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(13) Right-of-use assets
Land Buildings Total
Cost
31 December 2020 - - -
Changes to accounting
policies 9,640,758 1,897,983 11,538,741
1 January 2021 9,640,758 1,897,983 11,538,741
Increased in current year 129,600 - 129,600
Decreased in current year - - -
31 December 2021 9,770,358 1,897,983 11,668,341
Accumulated amortisation
31 December 2020 - - -
Changes to accounting
policies - - -
1 January 2021 - - -
Increased in current year - - -
Provision in current year 942,985 813,421 1,756,406
31 December 2021 942,985 813,421 1,756,406
Book value
31 December 2021 8,827,373 1,084,562 9,911,935
31 December 2020 - - -
(14) Intangible assets and development expenditure
Patents
Land use and proprietary Exploitation
rights technologies rights Others Total
Cost
31 December 2020 1,104,513,769 412,396,040 4,572,365 41,871,072 1,563,353,246
Increased in current year
Acquisition in current year 65,384,400 - 1,079,386 5,327,462 71,791,248
Transfers from development
expenditure in current year - 16,592,180 - - 16,592,180
Decreased in current year
Disposal - - - (485,294) (485,294)
31 December 2021 1,169,898,169 428,988,220 5,651,751 46,713,240 1,651,251,380
Accumulated amortisation
31 December 2020 207,220,415 161,295,114 4,462,351 37,446,631 410,424,511
Increased in current year
Provision in current year 23,489,627 33,676,803 129,259 3,194,592 60,490,281
- 129 -
CSG HOLDING CO., LTD.
Notes to the financial statements
for the year ended 31 December 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
Decreased in current year
Disposal - - - (485,294) (485,294)
31 December 2021 230,710,042 194,971,917 4,591,610 40,155,929 470,429,498
Provision for impairment loss
31 December 2020 - 13,201,347 - 9,133 13,210,480
31 December 2021 - 13,201,347 - 9,133 13,210,480
Book value
31 December 2021 939,188,127 220,814,956 1,060,141 6,548,178 1,167,611,402
31 December 2020 897,293,354 237,899,579 110,014 4,415,308 1,139,718,255
As at 31 December 2021, ownership certificates of land use rights (“Land ownership Certificates”) for certain
land use rights of the Group with carrying amounts of approximately RMB 4,963,913 (cost: RMB 6,685,352)
had not yet been obtained by the Group (31 December 2020: carrying amount: RMB 4,739,196, cost: RMB
6,586,712). The Company’s management are 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.
- 130 -
CSG HOLDING CO., LTD.
Notes to the financial statements
for the year ended 31 December 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
The Group’s expenditure is analysed below:
31 December Increase in
Decrease in current year
2020 current year 31 December 2021
Recognised as Recognised as
expenses intangible assets
Development
costs 49,153,407 39,458,135 - (16,592,180) 72,019,362
In 2021, the total amount of research and development expenditures of the Group was RMB 551,196,983
(2020: RMB 434,641,497), including RMB 511,738,848 (2020: RMB 404,842,498) recorded in income
statement for current period and the research and development expenditure with the amount of RMB
16,592,180 recognised as intangible assets for the current period (2020: 65,885,948). As at 31 December
2021, the intangible assets arising from internal research and development accounted for 20.47% of cost
amount of intangible assets (31 December 2020: 20.56%).
(15) Goodwill
(a) Original Book value of goodwill
Decrease
31 December Increase in in current 31 December
2020 current year year 2021
Tianjin CSG Architectural Glass Co., Ltd. 3,039,946 - - 3,039,946
Xianning CSG Photoelectric 4,857,406 - - 4,857,406
Shenzhen CSG Display(i) 389,494,804 - - 389,494,804
397,392,156 - - 397,392,156
(b) Provision for impairment of goodwill
Decrease
31 December Increase in in current 31 December
2020 current year year 2021
Shenzhen CSG Display(i) 164,016,463 103,227,834 - 267,244,297
164,016,463 103,227,834 - 267,244,297
(i) The calculation of the impairment used the higher conclusions of the two future measurement methods
of the present value of the expected future cash flow and the fair value minus the disposal expenses.
The methods, assumptions, asset groups, etc. of the goodwill impairment test this year was consistented
with the date of purchase and the previous year.
(i) Shenzhen CSG Display adopting the method of discounting future cashflow is with the following main
hypothesizes:
2021 2020
income growth for the predicted period 1%-15% -7%-21%
income growth for the stabilized period 0% 0%
gross profit margin 20%-24% 22%-27%
discount rate 13% 12%
- 131 -
CSG HOLDING CO., LTD.
Notes to the financial statements
for the year ended 31 December 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
Combining with the prediction of the future business and independent third party appraisal institution,the
Company's management considered that the goodwill was impaired RMB 103,227,834 as at 31 December
2021 (2020: RMB 81,722,063) .
(16) Deferred tax assets and liabilities
(a) Deferred tax assets before offsetting
31 December 2021 31 December 2020
Deductible temporary Deductible temporary
differences Deferred tax assets differences Deferred tax assets
Provision for asset
impairments 1,005,602,209 152,036,386 736,119,311 113,183,894
Tax losses 621,359,522 106,718,563 509,689,080 86,461,610
Government grants 165,972,475 25,755,549 175,322,807 27,297,200
Accrued expenses 7,908,397 1,186,260 7,184,597 1,077,690
Depreciation of fixed
assets, etc 116,353,922 21,202,310 18,804,540 2,822,699
1,917,196,525 306,899,068 1,447,120,335 230,843,093
Including:
Expected to be reversed within
one year (inclusive) 26,402,235 11,504,204
Expected to be reversed after
one year 280,496,833 219,338,889
306,899,068 230,843,093
(b) Deferred tax liabilities before offsetting
31 December 2021 31 December 2020
Taxable temporary Deferred tax Taxable temporary Deferred tax
differences liabilities differences liabilities
Depreciation of fixed
assets 527,215,830 80,756,420 540,143,676 82,946,754
Investment real estate
differences between tax
rules and
accounting rules 370,245,713 55,536,857 370,245,713 55,536,857
897,461,543 136,293,277 910,389,389 138,483,611
Including:
- 132 -
CSG HOLDING CO., LTD.
Notes to the financial statements
for the year ended 31 December 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
Expected to be reversed within
one year (inclusive) 7,842,148 7,100,568
Expected to be reversed after one
year 128,451,129 131,383,043
136,293,277 138,483,611
(c) Deductible losses that are not recognised as deferred tax assets of the Group are analysed as follows:
31 December 2021 31 December 2020
Deductible losses 2,045,391,888 1,458,462,329
The deductible tax losses not recognised as deferred tax assets mainly represented the tax losses of the
Company and some subsidiaries. Management was unable to expect that whether there were taxable profit
would be available in the future against which these deductible tax losses can be utilised, and accordingly, did
not recognise the deferred tax assets.
(d) The tax losses for which no deferred tax assets were recognised will expire in the following years:
31 December 2021 31 December 2020
2021 - 111,625,585
2022 83,303,539 83,303,539
2023 146,238,837 146,238,837
2024 178,208,832 178,208,832
2025 939,085,536 939,085,536
2026 698,555,144 -
2,045,391,888 1,458,462,329
(e) The net balances of deferred tax assets and liabilities after offsetting are as follows:
31 December 2021 31 December 2020
Deductible/taxable Deductible/taxable
Net deferred tax temporary differences Net deferred tax temporary differences
assets or liabilities after offsetting assets or liabilities after offsetting
Deferred tax assets 255,185,923 1,579,256,701 194,979,414 1,214,859,410
Deferred tax liabilities 84,580,132 559,521,719 102,619,932 678,128,464
- 133 -
CSG HOLDING CO., LTD.
Notes to the financial statements
for the year ended 31 December 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(17) Other non-current assets
31 December 2021 31 December 2020
Prepayment for equipment and project 469,352,622 186,849,445
Prepayment for lease of land use rights 14,810,000 6,510,000
Certificates of deposit 100,000,000 -
584,162,622 193,359,445
(18) Impairment of asset
Other Other
31 December Increase in Increased in Reversal in Written off in decreased in 31 December
2020 current year current year current year current year current year 2021
Provision for bad debts 49,759,562 168,268,105 - (14,373,668) (2,394,621) - 201,259,378
Including: Provision for bad debts
of accounts receivable 33,382,536 98,193,009 - (14,097,238) (153,330) - 117,324,977
Provision for bad debts
of other receivables 16,377,026 49,296,290 - (276,430) (2,241,291) - 63,155,595
Provision for decline in
the value of inventories - 20,778,806 - - - - 20,778,806
Provision for decline in the value
of inventories 11,945,387 4,444,583 - - (9,160,994) - 7,228,976
Provision for impairment of fixed
assets 835,926,402 223,891,270 12,749,513 - (58,950,341) - 1,013,616,844
Provision for impairment of
construction in progress 639,207,259 650,101,859 - - (281,732) (12,749,513) 1,276,277,873
Provision for impairment of
intangible assets 13,210,480 - - - - - 13,210,480
Provision for impairment of
goodwill 164,016,463 103,227,834 - - - - 267,244,297
1,714,065,553 1,149,933,651 12,749,513 (14,373,668) (70,787,688) (12,749,513) 2,778,837,848
(19) Short-term borrowings
31 December 2021 31 December 2020
Credit loan 100,000,000 49,800,000
Guaranteed (i) 80,770,000 298,095,571
Mortgage loan - 5,000,000
180,770,000 352,895,571
(i) As at 31 December 2021, the Company provided its subsidiaries with guarantee for the short-term
borrowings of RMB 80,770,000 (31 December 2020: RMB298,095,571).
As at 31 December 2021, the interest of short-term borrowings varied from 3.40% to 3.90% (31
December 2020: 2.05% to 4.20%).
(20) Notes payable
- 134 -
CSG HOLDING CO., LTD.
Notes to the financial statements
for the year ended 31 December 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
31 December 2021 31 December 2020
Trade acceptance notes 107,571,279 9,903,213
Bank acceptance notes 293,091,434 134,947,979
400,662,713 144,851,192
All notes payable are due within one year.
(21) Accounts payable
31 December 2021 31 December 2020
Materials payable 665,770,883 755,509,571
Equipment payable 268,623,795 209,292,511
Construction expenses payable 372,802,783 146,976,774
Freight payable 68,894,843 70,011,499
Utilities payable 47,260,003 49,441,605
Others 5,499,005 6,601,091
1,428,851,312 1,237,833,051
As at 31 December 2021, the amount of accounts payable over 1 year was approximately RMB163,883,870
(31 December 2020: RMB120,702,169), which mainly comprised payables for construction and equipment. As
the construction work had not passed the final acceptance test yet, the balance was not yet settled.
(22) Contract liabilities
31 December 2021 31 December 2020
Advances for goods from customers 335,188,642 296,776,624
(23) Employee benefits payable
31 December 2021 31 December 2020
Short-term employee benefits payable (a) 426,027,259 342,315,790
Defined contribution plans payable (b) 11,722 461
Termination benefits(c) 173,998 35,915
426,212,979 342,352,166
(a) Short-term employee benefits
31 December Increase in Decrease in 31 December
2020 current year current year 2021
- 135 -
CSG HOLDING CO., LTD.
Notes to the financial statements
for the year ended 31 December 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
Wages and salaries, bonus,
allowances and subsidies 322,617,585 1,623,933,822 (1,543,835,057) 402,716,350
Social security contributions 5,288 51,620,713 (51,620,193) 5,808
Including: Medical insurance 4,957 45,408,305 (45,408,165) 5,097
Work injury insurance - 3,517,365 (3,517,074) 291
Maternity insurance 331 2,695,043 (2,694,954) 420
Housing funds 1,018,185 39,944,719 (40,004,106) 958,798
Labour union funds and employee
education funds 18,674,732 19,167,710 (15,496,139) 22,346,303
342,315,790 1,734,666,964 (1,650,955,495) 426,027,259
(b) Defined contribution plans
31 December Increase in Decrease in 31 December
2020 current year current year 2021
Basic pensions 444 119,161,500 (119,150,300) 11,644
Unemployment insurance 17 3,943,330 (3,943,269) 78
461 123,104,830 (123,093,569) 11,722
(c) Dismissal benefits
31 December Increase in Decrease in 31 December
2020 current year current year 2021
Other dismissal welfare 35,915 6,275,084 (6,137,001) 173,998
35,915 6,275,084 (6,137,001) 173,998
(24) Taxes payable
31 December 2021 31 December 2020
Enterprise income tax payable 81,469,865 90,295,709
VAT payable 77,539,743 82,055,265
Housing property tax payable 4,126,693 3,937,112
Individual income tax payable 4,947,559 3,600,603
City maintenance and construction tax payable 5,853,393 6,414,982
Educational surcharge payable 4,662,534 4,762,191
Environmental tax payable 1,674,797 1,901,375
Others 4,735,097 1,953,834
185,009,681 194,921,071
(25) Other payables
- 136 -
CSG HOLDING CO., LTD.
Notes to the financial statements
for the year ended 31 December 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
31 December 2021 31 December 2020
Interest payable 95,001,362 132,133,902
Other payables 194,439,115 155,199,090
289,440,477 287,332,992
1、 Interest payable
1、 31 December 2021 31 December 2020
Interest of medium-term notes - 37,955,556
Interest of long-term borrowings with periodic
payments of interest and return of principal at maturity 2,558,374 1,590,247
Interest of short-term borrowings 184,923 330,034
Interest of corporate bonds 92,258,065 92,258,065
95,001,362 132,133,902
2、 Other payables
31 December 2021 31 December 2020
Guarantee deposits received from construction
contractors 101,467,608 77,932,889
Provision for operating costs and expenses (i) 51,592,989 38,943,663
Payable for contracted labour costs 21,273,645 16,548,708
Temporary receipts for third parties 6,033,599 10,298,957
Deposit for disabled 5,796,364 4,680,725
Other 8,274,910 6,794,148
194,439,115 155,199,090
(i) It represented the payment made to external third parties arising from undertaking the rights of debtor
and creditor, comprising water and electricity, professional service fee and travelling expenses etc.
(26) Current portion of non-current liabilities
31 December 2021 31 December 2020
Current portion of long-term borrowings
- Guaranteed 66,098,352 127,531,709
- Credit loan 400,000,000
Medium term notes due within 1 year - 800,000,000
Long-term account payable due within 1 year 36,865,104 -
Leases liabilities due within one year 857,092 -
- 137 -
CSG HOLDING CO., LTD.
Notes to the financial statements
for the year ended 31 December 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
503,820,548 927,531,709
(27) Other current liabilities
31 December 2021 31 December 2020
Output VAT to be transferred 39,799,309 34,286,292
Other 300,000 300,000
40,099,309 34,586,292
(28) Long-term borrowings
31 December 2021 31 December 2020
Guaranteed 779,059,824 153,253,983
Credit loan 690,000,000 700,000,000
1,469,059,824 853,253,983
(i) As at 31 December 2021, the interest of long-term borrowings varied from 4.00% to 4.60% (31
December 2020: 3.40% to 4.60%).
(29) Bonds payable
31 December 2021 31 December 2020
Corporate bonds 1,996,587,330 1,994,020,348
1,996,587,330 1,994,020,348
Interest Amortisation
Debentures Par Date Issue 31 December accrued of premium/
name value of issue Term amount 2020 at par value discount 31 December 2021
2020-3-24
20 CSG 01 100 To 2020- 3 years 2,000,000,000 1,994,020,348 120,000,000 2,566,982 1,996,587,330
3-25
2,000,000,000 1,994,020,348 120,000,000 2,566,982 1,996,587,330
(i) In March 2020, after approved by the China Securities Regulatory Commission, the company was
approved to publicly issue 2020 corporate bonds (first tranche) to qualified investors, with a face value
of RMB 100, an issuance amount of RMB 2 billion, and a period of 3 years (annual interest payment,
principal repayment at maturity), the coupon rate is 6%; the issuance date is March 24, 2020 to March
25, 2020, and the value date is March 25, 2020.
- 138 -
CSG HOLDING CO., LTD.
Notes to the financial statements
for the year ended 31 December 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(30) Lease liabilities
31 December 2021 31 December 2020
Lease payments 1,077,230 -
Less: Current portion of non-current liabilities (857,092) -
220,138 -
(31) Long-term account payable
31 December 2021 31 December 2020
Finance lease payable 168,258,062 -
(32) Deferred income
31 December 2021 31 December 2020
Government grants 564,129,128 498,056,081
Government grants are analysed as follows:
Other Non-operating
31 December Increase in decrease in income in current 31 December Assets/Income
Government grants 2020 current year current year year 2021 related
Tianjin energy saving gold solar project (i) 43,592,443 - - (3,374,892) 40,217,551 Assets related
Dongguan project gold solar project (ii) 35,075,250 - - (2,751,000) 32,324,250 Assets related
Hebei South Bolk Sun Project (iii) 35,750,000 - - (2,750,000) 33,000,000 Assets related
Xianning South Bolt Solar Engineering
Project (iv) 38,891,417 - - (3,030,500) 35,860,917 Assets related
Wu Jiangnan infrastructure compensation
(v) 27,504,284 - - (4,041,538) 23,462,746 Assets related
Qingyuan energy-saving project (vi) 14,176,616 - - (3,267,449) 10,909,167 Assets related
Yichang polysilicon project (vii) 13,359,375 - - (2,812,500) 10,546,875 Assets related
Yichang Nanolate Silicon Molding Project
(viii) 18,456,685 3,000,000 - (2,355,719) 19,100,966 Assets related
Sichuan energy-saving glass project (ix) 5,513,400 - - (1,654,020) 3,859,380 Assets related
Group coating laboratory project (x) 2,401,800 - - (901,800) 1,500,000 Assets related
Yichang high-purity silicon material project
(xi) 2,720,797 - - (303,178) 2,417,619 Assets related
Yichang semiconductor silicon material
project (xii) 2,866,666 - - - 2,866,666 Assets related
Yichang Display Company Project (xiii) 43,233,170 - - (2,667,813) 40,565,357 Assets related
Xianning Optoelectronics Project (xiv) 6,760,000 - - (520,000) 6,240,000 Assets related
Shenzhen medical equipment subsidy
project (xv) 8,342,000 - - (1,164,000) 7,178,000 Assets related
Hebei float emission reward (xvi) - 9,600,000 - (244,586) 9,355,414 Assets related
Group Talent Fund Project (xvii) 171,000,000 - - - 171,000,000 Income related
Zhaoqing energy-saving industry to build
financial support funds (xviii) - 92,718,500 - (5,462,789) 87,255,711 Income related
- 139 -
CSG HOLDING CO., LTD.
Notes to the financial statements
for the year ended 31 December 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
Related
assets/Income
Others 28,412,178 1,142,500 - (3,086,169) 26,468,509 related
498,056,081 106,461,000 - (40,387,953) 564,129,128
(i) The allowance was granted by Tianjin Municipal Government. The allowance was used for establishing
PV power station by Tianjin Energy Conservation Company. The facilities belonged to Tianjin Energy
Conservation Company. The allowance will be credited to income statement in 20 years, the useful life
of the PV power station.
(ii) The allowance was granted by Dongguan Municipal Government. The allowance was used for
establishing PV power station by Dongguan CSG Architectural Glass Co., Ltd. The facilities belonged
to Dongguan CSG upon completion. The allowance will be credited to income statement in 20 years,
the useful life of the PV power station.
(iii) The allowance was granted by Langfang Municipal Government. The allowance was used for
establishing PV power station by Hebei CSG Glass Co., Ltd. ("Hebei CSG"). When the facilities were
set up, they belonged to Hebei CSG. The allowance will be credited to income statement in 20 years,
the useful life of the PV power station.
(iv) The allowance was granted by Xianning Municipal Government. The allowance was used for
establishing PV power station by Xianning CSG Glass Co Ltd. The facilities belonged to Xianning CSG
upon completion. The allowance will be credited to income statement in 20 years, the useful life of the
PV power station.
(v) The allowance was infrastructure compensation granted by Wujiang municipal government, and will be
credited to income statement in 15 years, the shortest operating period as committed by the Group.
(vi) The allowance was granted by Guangdong Province and which was a pilot project for strategic emerging
industry clusters development and was used to establish high performance ultra-thin electronic glass
production lines by Qingyuan CSG. The allowance will be credited to income statement in 10 years, the
useful life of the production line.
(vii) The balance represented amounts granted to Yi Chang CSG polysilicon Materials Co., Ltd. by Yichang
City Dongshan Development Corporation under the provisions of the investment contract signed
between the Group and the Municipal Government of Yi Chang. The proceeds were designed for the
construction of electricity transformer and the pipelines. Yichang polysilicon is entitled to the ownership
of the facilities, which will be amortised by 16 years according to the useful life of the converting station.
(viii) It represented the government supporting fund obtained by Yichang polysilicon from the acquiring of the
assets and liabilities of Crucible project of Yichang Hejing Photoelectric Ceramic Co., Ltd. The proceeds
would be amortised and credited to income statement by 16 years after related assets were put into use.
(ix) It represented the funds granted by Chengdu local government for energy glass project. It will be
amortised and credited to income statement in 15 years, in accordance with the minimum operating
period committed by the Group.
(x) The allowance was granted by Shenzhen City Development and Reform Commission for the
development of Group Coating Film experimental project. The grant will be amortised and credited to
income statement in the estimated useful life of the relevant fixed assets.
- 140 -
CSG HOLDING CO., LTD.
Notes to the financial statements
for the year ended 31 December 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(xi) It represented the funds granted by Hubei local government for inport discount complement and
international corporation special subsidy. The grant will be amortised and credited to income statement
by 12 to 15 years.
(xii) It represented the special subsidy of Yichang National Regional Strategic Emerging Industry
Development Pilot Project II, which is used to complement Yichang CSG PolysSilicon “Hubei
semiconductor silicon preparative technique project laboratory”. The grant will be amortised and credited
to income statement by 15 years.
(xiii) It represented the funds granted by Yichang Municipal Government for Yichang CSG Display
Company's flat project construction support funds and construction of coil coating three-line project. The
grant will be amortised and credited to income statement by 15 years.
(xiv) It represented the funds granted by Xianning Government of the Project supporting fund for
photoconductive glass production line,which is used to pay for Xianning CSG Glass Co. Ltd.
constructing the project of photoelectric photoelectric optical glass production line . After the completion
of the production line, the ownership belongs to Xianning photoelectric. The allowance will be credited
to income statement in 8 years, the useful life of the production line.
(xv) The allowance was granted by Shenzhen Municipal Government. The allowance was used for the
production line of epidemic prevention materials for Shenzhen CSG Medical Technology Co., Ltd. The
facilities belonged to Shenzhen CSG Medical Technology Co., Ltd upon completion. The allowance will
be credited to income statement with the useful life of the production line.
(xvi) The allowance was granted by Administrative Commission of Yongqing County Ecological Environment
Bureau.and Hebei CSG. is used to produce line drop emission transformation, and the grant will be
amortised and credited to income statement in the residual life of the relevant fixed assets.
(xvii) The allowance was granted by Administrative Commission of Yichang High-tech Industrial Development
Zone. For senior management personnel, engineering technical personnel and senior professional
technical team who are working at Yichang or plane to introduction, RMB171 million fund was set up,
as a special fund for talent introduction and housing resettlement.
(xviii) The allowance was granted by Administrative Commission of Guangdong Provincial Department of
Finance is a provincial industry to jointly establish financial support funds which is used to Z the
development of enterprises, production and operation, and other expenditure for Zhaoqing Energy
Saving Company.
(33) Share capital
Movement for the year ended 31 December
2021
New issues
31 December during the Bonus 31 December
2020 year issue Capitalisation Others 2021
RMB-denominated ordinary shares 1,961,323,047 - - - - 1,961,323,047
Domestically listed foreign shares 1,109,369,060 - - - - 1,109,369,060
3,070,692,107 - - - - 3,070,692,107
- 141 -
CSG HOLDING CO., LTD.
Notes to the financial statements
for the year ended 31 December 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
Movement for the year ended 31 December
2020
New issues
31 December during the Bonus 31 December
2019 year issue Capitalisation Others 2020
RMB-denominated ordinary shares 1,961,323,047 - - - - 1,961,323,047
Limited selling condition shares 36,222,898 - - - (36,222,898) -
Domestically listed foreign shares 1,109,369,060 - - - - 1,109,369,060
3,106,915,005 - - - (36,222,898) 3,070,692,107
The par value of the RMB-denominated ordinary shares is RMB1, and that of domestically listed foreign shares
is HKD1.
(34) Capital surplus
Increase in Decrease in
31 December 2020 current year current year 31 December 2021
Share premium 655,424,260 - - 655,424,260
Other capital surplus (58,427,175) - - (58,427,175)
Share of changes in equity other than
comprehensive income and profit
distribution of investees under the
equity method 757,420 - - 757,420
Share-based payment - - - -
Transfer of capital surplus recognised
under the previous accounting system (2,250,222) - - (2,250,222)
Disposal of fractional shares 1,316,208 - - 1,316,208
Purchase of minority interests (87,197,562) - - (87,197,562)
Shareholders interest-free loans 28,946,981 - - 28,946,981
596,997,085 - - 596,997,085
Increase in Decrease in
31 December 2019 current year current year 31 December 2020
Share premium 738,834,850 - (83,410,590) 655,424,260
Other capital surplus (55,615,492) - (2,811,683) (58,427,175)
Share of changes in equity other than
comprehensive income and profit
distribution of investees under the
equity method 757,420 - - 757,420
Share-based payment 2,811,683 - (2,811,683) -
Transfer of capital surplus recognised
under the previous accounting system (2,250,222) - - (2,250,222)
Disposal of fractional shares 1,316,208 - - 1,316,208
Purchase of minority interests (87,197,562) - - (87,197,562)
Shareholders interest-free loans 28,946,981 - - 28,946,981
683,219,358 - (86,222,273) 596,997,085
- 142 -
CSG Annual Report 2021
(35) Other comprehensive income
Other comprehensive income in Income Statement for the year ended 31 December 2021
Less: Reclassification
Attributable to of previous other Attributable to
parent Actual amount comprehensive Attributable to minority
31 December company 31 December before tax for income to profit or Less: Income parent company shareholders
2020 after tax 2021 current year loss in current year tax expenses after tax after tax
Other comprehensive income items which will be
reclassified subsequently to profit or loss - - -
Financial rewards for energy-saving technical
retrofits 2,550,000 - 2,550,000 -
Difference on translation of foreign currency
financial statements (1,884,978) (2,616,289) (4,501,267) (2,616,289) (2,616,289)
Income generated when self-property and land
use rights are converted into investment
property 161,151,797 - 161,151,797 -
161,816,819 (2,616,289) 159,200,530 (2,616,289) (2,616,289)
Other comprehensive income in Income Statement for the year ended 31 December 2020
Less: Reclassification
Attributable to of previous other Attributable to
parent Actual amount comprehensive Attributable to minority
31 December company 31 December before tax for income to profit or Less: Income parent company shareholders
2019 after tax 2020 current year loss in current year tax expenses after tax after tax
Other comprehensive income items which will be
reclassified subsequently to profit or loss - - -
Financial rewards for energy-saving technical
retrofits 2,550,000 - 2,550,000 -
Difference on translation of foreign currency
financial statements 4,015,864 (5,900,842) (1,884,978) (5,900,842) (5,900,842)
Income generated when self-property and land
use rights are converted into investment
property ----161,151,797 161,151,797 189,590,349 28,438,552 161,151,797
6,565,864 155,250,955 161,816,819 183,689,507 28,438,552 155,250,955
- 143 -
CSG Annual Report 2021
(36) Special reserve
31 December Increase in Decrease in 31 December
2020 current year current year 2021
Safety production costs 10,269,002 - (2,972,605) 7,296,397
The subsidiary Yichang CSG PolysSilicon is a high risk chemical production enterprise. Therefore, the
Company appropriated such reserve in accordance with relevant regulations.
(37) Surplus reserve
31 December Increase in Decrease in 31 December
2020 current year current year 2021
Statutory surplus reserve 909,095,854 107,939,088 - 1,017,034,942
Discretionary surplus reserve 127,852,568 - - 127,852,568
1,036,948,422 107,939,088 - 1,144,887,510
31 December Increase in Decrease in 31 December
2019 current year current year 2020
Statutory surplus reserve 818,398,718 90,697,136 - 909,095,854
Discretionary surplus reserve 127,852,568 - - 127,852,568
946,251,286 90,697,136 - 1,036,948,422
In accordance with the Company Law of the People’s Republic of China and the Company’s Articles of
Association, the Company should appropriate 10% of net profit for the year to the statutory surplus
reserve, and the Company can cease appropriation when the statutory surplus reserve accumulated to
more than 50% of the registered capital. The statutory surplus reserve can be used to make up for the
loss or increase the paid-in capital after approval from the appropriate authorities. The Company
accrued statutory surplus reserve at the amount of RMB 107,939,088 based on 10% of the net profit, in
2021 (2020: RMB 90,697,136 accrued at 10% of the net profit).
The Company appropriates for the discretionary surplus reserve after the shareholders’ meeting
approves the proposal from the Board of Directors. The discretionary surplus reserve can be used to
make up for the loss or increase the share capital after approval from the appropriate authorities. The
Company did not appropriate to discretionary surplus reserve during the year.
(38) Undistributed profits
2021 2020
Undistributed profit at the beginning of year 5,336,266,412 4,859,600,841
Add: Net profits attributable to shareholders of parent
company 1,529,329,304 779,325,592
Less: Appropriation for statutory surplus reserve (107,939,088) (90,697,136)
Ordinary share dividends payable (a) (307,069,211) (211,962,885)
Undistributed profits at end of year 6,450,587,417 5,336,266,412
(a) Pursuant to the resolution of Board of Directors of the Company on 7 May 2021, the Company paid cash
dividends of RMB 1 (tax inclusive) for each 10 shares based on total shares of 3,070,692,107, with the
total cash dividends distributed of RMB 307,069,211 (tax inclusive).
(39) Revenue and cost of sales
- 144 -
CSG HOLDING CO., LTD.
Notes to the financial statements
for the year ended 31 December 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2021 2020
Revenue from main operations 13,495,790,939 10,586,819,348
Revenue from other operations 133,242,711 84,434,097
13,629,033,650 10,671,253,445
2021 2020
Cost of sales from main operations 8,827,529,958 7,441,135,985
Cost of sales from other operations 21,958,135 3,329,746
8,849,488,093 7,444,465,731
(a) Revenue and cost of sales from main operations
Revenue and cost of sales from main operations analysed by industry and product are set out below:
2021 2020
Revenue Cost Revenue Cost
Glass industry 10,992,359,659 7,061,394,960 8,648,968,925 5,978,411,008
Electronic glass and display 1,875,794,696 1,220,707,376 1,080,294,536 755,486,558
Solar and other industries 870,025,461 787,816,499 918,644,331 768,326,863
Elimination (242,388,877) (242,388,877) (61,088,444) (61,088,444)
13,495,790,939 8,827,529,958 10,586,819,348 7,441,135,985
(b) Revenue and cost of sales from other operations
2021 2020
Revenue Cost Revenue Cost
Sales of raw materials and
Others 133,242,711 21,958,135 84,434,097 3,329,746
133,242,711 21,958,135 84,434,097 3,329,746
(40) Taxes and surtax
2021 2020
City maintenance and construction tax 40,516,097 35,628,490
Educational surcharge 35,188,375 29,987,714
Housing property tax 32,643,067 28,957,233
Land use rights 23,513,848 12,958,802
Stamp tax 8,559,125 5,074,506
Environmental tax 6,836,101 7,731,103
Others 1,398,805 1,560,674
148,655,418 121,898,522
(41) Selling expenses
- 145 -
CSG HOLDING CO., LTD.
Notes to the financial statements
for the year ended 31 December 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2021 2020
Employee benefits 183,925,526 151,981,631
Entertainment fees 20,359,285 18,142,648
Business travel expenses 8,791,046 7,092,008
Freight expenses 8,738,363 12,684,512
Vehicle use fees 8,505,855 7,664,729
Rental expenses 7,422,419 6,846,194
Depreciation expenses 803,741 908,207
Others 32,149,198 28,599,009
270,695,433 233,918,938
(42) Administrative expenses
2021 2020
Employee benefits 441,265,481 345,024,244
Depreciation expenses 68,995,374 60,876,687
Amortisation of intangible assets 60,490,281 58,303,184
General office expenses 30,570,337 29,724,065
Labour union funds 19,409,807 14,096,131
Entertainment fees 19,772,396 13,021,278
Business travel expenses 7,657,160 6,555,071
Utility fees 5,551,260 6,571,509
Canteen costs 8,389,711 7,475,271
Vehicle use fees 6,399,995 5,515,675
Consulting advisers 21,279,093 17,515,445
Shutdown loss - 43,071,647
Others 62,824,612 59,226,354
752,605,507 666,976,561
(43) Research and development expenses
2021 2020
Research and development expenses 511,738,848 404,842,498
511,738,848 404,842,498
(44) Financial expenses
2021 2020
Interest on borrowings 202,905,070 282,470,740
Less: Capitalised interest (14,046,907) (9,162,681)
Interest expenses 188,858,163 273,308,059
Less: Interest income (42,702,029) (53,404,661)
- 146 -
CSG HOLDING CO., LTD.
Notes to the financial statements
for the year ended 31 December 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
Exchange losses 2,721,960 (1,688,559)
Others 2,304,097 5,797,081
151,182,191 224,011,920
(45) Expenses by nature
The cost of sales, selling and distribution expenses, general and administrative expenses, research and
development expenses in the income statement are listed as follows by nature:
2021 2020
Changes in inventories of finished goods and
work in progress (147,777,794) 45,430,285
Consumed raw materials and low value
consumables, etc. 5,221,358,883 4,061,391,717
Fuel fee 1,461,994,755 1,281,713,451
Employee benefits 1,761,698,146 1,424,069,878
Depreciation and amortisation expenses 955,997,061 923,292,967
Utility fees 602,529,940 541,569,991
Freight expenses 173,156,501 154,114,713
General office expenses 44,661,748 45,667,757
Canteen costs 37,879,067 35,705,412
Business travel expenses 21,895,145 16,682,603
Entertainment fees 45,541,461 34,020,807
Vehicle use fee 16,091,881 14,285,144
Rental expenses 18,631,989 21,279,601
Others 170,869,098 150,979,402
10,384,527,881 8,750,203,728
(46) Gains arising from changes in fair value
2021 2020
Investment real estate measured at fair value - 179,911,200
- 179,911,200
(47) Investment income
2021 2020
Income from structural deposits etc 16,847,647 2,654,504
16,847,647 2,654,504
- 147 -
CSG HOLDING CO., LTD.
Notes to the financial statements
for the year ended 31 December 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(48) Other income
2021 2020
Government subsidy amortization 40,387,953 35,444,848
Industry support funds 4,315,700 4,063,000
Research grants 11,171,171 9,531,120
Government incentive funds 31,591,282 29,508,022
Others 18,999,711 21,013,410
106,465,817 99,560,400
(49) Credit impairment losses
2021 2020
Losses on bad debts of accounts receivable 84,095,771 5,120,629
Losses on bad debts of other receivables 49,019,860 601,990
Losses on bad debts of Notes receivables 20,778,806 -
153,894,437 5,722,619
(50) Asset impairment losses
2021 2020
Impairment loss of fixed assets 223,891,270 428,132,973
Decline in the value of inventories 4,444,583 9,712,924
Impairment loss in construction in progress 650,101,859 218,940,134
Impairment loss in goodwill 103,227,834 81,722,063
981,665,546 738,508,094
(51) Asset disposal income
2021 2020
Gains on disposal of non-current assets (1,493,248) (1,158,984)
(1,493,248) (1,158,984)
- 148 -
CSG HOLDING CO., LTD.
Notes to the financial statements
for the year ended 31 December 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(52) Non-operating income
Amount of non-
recurring gains
and losses
2021 2020 included in 2021
Government grants - 100,000 -
Compensation income 2,945,158 2,985,667 2,945,158
Amounts unable to pay 5,229,842 4,572,559 5,229,842
Others 4,429,534 6,711,613 4,429,534
12,604,534 14,369,839 12,604,534
(53) Non-operating expenses
Amount of non-
recurring gains and
losses included in
2021 2020 2021
Compensation 256,750 1,507,494 256,750
Donation 319,746 17,321,288 319,746
Government subsidy return back 15,028,336 - 15,028,336
Others 10,525,912 1,725,613 10,525,912
26,130,744 20,554,395 26,130,744
(54) Income tax expenses
2021 2020
Current income tax 434,400,038 238,941,249
Deferred income tax (78,246,309) 54,796,896
356,153,729 293,738,145
Reconciliation of income tax calculated at the applicable tax rate based on total profit in the consolidated
income statement to the income tax expenses is listed below:
2021 2020
Total profit 1,917,402,183 1,105,691,126
Income tax expenses calculated at applicable tax rates by
company 324,483,014 181,218,682
Effect of changes in tax rates 2,971,669 -
Costs, expenses and losses not deductible for tax purposes 3,970,483 2,517,415
Deductible losses of unrecognised deferred income tax
assets in the previous period (6,855,521) (2,772,095)
Deductible losses for which no deferred tax asset was
recognised in current period 105,049,758 161,018,094
- 149 -
CSG HOLDING CO., LTD.
Notes to the financial statements
for the year ended 31 December 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
Effect of tax incentives (71,109,609) (42,340,548)
Reconciliation of income tax for prior years in annual filing (2,356,065) (5,903,403)
Income tax expenses 356,153,729 293,738,145
(55) Earnings per share
The basic earnings per share is calculated by dividing the net profit attributable to ordinary shareholders
of the company by the weighted average number of ordinary shares outstanding.
The numerator of diluted earnings per share is determined based on the net profit attributable to the
common shareholders of the company's common stock. The following factors are adjusted to determine:
(1) interest on dilutive potential ordinary shares that have been recognized as expenses in the current
period; (2) dilutive potential ordinary The income or expenses that will be generated when the shares
are converted; (3) The above-mentioned adjustments related to income tax effects.
The denominator of the diluted earnings per share equals the sum of: (1) the weighted average number
of ordinary shares of the parent company in the underlying earnings per share; (2) ordinary shares that
are increased assuming the dilution of potential ordinary shares into common shares The weighted
average.
When calculating the weighted average of the number of ordinary shares increased from diluted
common stocks to ordinary shares, the diluted potential ordinary shares issued during the previous
period are assumed to be converted at the beginning of the current period; diluted potential ordinary
shares of the current period are issued,assuming a conversion on the issue date.
The basic calculation of basic earnings per share and diluted earnings per share are as follows:
(a) Basic earnings per share:
Basic earnings per share is calculated by dividing the consolidated net profit attributable to ordinary
shareholders of the parent company by the weighted average number of ordinary shares issued by the
parent company.
2021 2020
Consolidated net profit attributable to ordinary
shareholders of parent company 1,529,329,304 779,325,592
Weighted average number of outstanding ordinary 3,070,692,107 3,070,692,107
Basic earnings per share 0.50 0.25
(b) Diluted earnings per share:
Diluted earnings per share are calculated by dividing consolidated net profit attributable to ordinary
shareholders of the parent company adjusted based on the dilutive potential ordinary shares by the
adjusted weighted average number of outstanding ordinary shares of the Company. For the year ended
31 December 2021, the Company had diluted earnings per shares of RMB 0.50 (2020: RMB 0.25 per
share).
(56) Notes to the cash flow statement
(a) Cash generated by other operating activities
- 150 -
CSG HOLDING CO., LTD.
Notes to the financial statements
for the year ended 31 December 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2021 2020
Government grants 172,538,864 83,690,924
Interest income 42,702,029 53,404,661
Others 45,790,381 40,668,625
261,031,274 177,764,210
(b) Cash paid relating to other operating activities
2021 2020
Freight expenses 10,850,337 50,765,589
Canteen costs 38,269,921 38,460,290
General office expenses 42,874,346 39,088,171
Business travel expenses 21,292,700 17,586,616
Entertainment fees 40,958,494 31,779,755
Vehicle use fee 15,575,367 12,831,298
Maintenance fee 25,907,924 22,961,067
Rental expenses 23,997,442 22,006,257
Insurance 14,037,127 13,934,943
Fees 2,304,097 5,797,081
Consulting advisers 23,166,436 24,030,410
Government subsidy return back 15,028,336 -
Others 166,575,025 143,813,446
440,837,552 423,054,923
(c) Cash generated by other investing activities
2021 2020
Entrusted Loan - 300,000,000
Income from trial production of construction in progress 59,262,312 124,382,895
Deposit 21,682,371 10,794,429
80,944,683 435,177,324
(d) Cash paid relating to other investing activities
2021 2020
Trial production expenditure in construction 56,312,270 118,741,948
Advance payment for others 24,000,000 -
80,312,270 118,741,948
(e) Cash generated by other financing activities
- 151 -
CSG HOLDING CO., LTD.
Notes to the financial statements
for the year ended 31 December 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2021 2020
Income from finance lease 200,000,000 -
Received deposit and security deposit - 153,698,226
200,000,000 153,698,226
(f) Cash payments relating to other financing activities
2021 2020
Repay financing leases - 478,319,392
Payment of loan, security and fee for bills - 3,460,879
Equity incentive fund - 122,445,171
- 604,225,442
(57) Supplementary information to the cash flow statement
(a) Reconciliation from net profit to cash flows from operating activities
2021 2020
Net profit 1,561,248,454 811,952,981
Add: Provision for asset impairment 981,665,546 738,508,094
Provision for credit impairment 153,894,437 5,722,619
Depreciation of fixed assets 893,319,936 863,408,582
Amortisation of intangible assets 60,490,281 58,303,184
Amortisation of long-term prepaid expenses 430,438 1,581,201
Depreciation of right-of-use assets 1,756,406 -
Losses on disposal of fixed assets and intangible
assets 1,493,248 1,158,984
Financial expenses 188,858,163 273,308,059
Gains arising from changes in fair value - (179,911,200)
Investment income (16,847,647) (2,654,504)
Decrease/(increase) in deferred tax assets (60,206,509) 10,813,173
Increase/(decrease) in deferred tax liabilities (18,039,800) 43,983,723
Decrease in inventories (273,932,796) (8,426,451)
Decrease/(increase) in operating receivables 104,211,540 (84,621,855)
Increase in operating payables 323,742,688 197,493,046
Net cash flows from operating activities 3,902,084,385 2,730,619,636
(b) Net increase/(decrease) in cash
2021 2020
Cash and cash equivalents at end of year 2,756,477,572 2,124,028,196
Less: Cash and cash equivalents at beginning of year (2,124,028,196) (1,831,835,030)
- 152 -
CSG HOLDING CO., LTD.
Notes to the financial statements
for the year ended 31 December 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
Net increase in cash and cash equivalents 632,449,376 292,193,166
(c) Cash and cash equivalents
31 December 2021 31 December 2020
Cash
- Cash on hand - 2,725
- Bank deposits that can be readily drawn on demand 2,453,477,573 1,463,954,484
- Other cash balances that can be readily drawn on
demand 302,999,999 660,070,987
Cash at end of year 2,756,477,572 2,124,028,196
(58) Assets with restricted ownership or use rights
2021 2020 Reason
Monetary assets 9,448,334 1,760,707 Restricted deposit flow etc
Limited finance lease and
Property,plant and equipment 165,095,479 238,490,675 Restricted mortage loan
174,543,813 240,251,382
(59) Monetary items denominated in foreign currencies
31 December 2021
Balances Balances
denominated in Exchange denominated in
foreign currencies rates RMB
Cash at bank and on hand—
- HKD 2,910,735 0.8176 2,379,817
- USD 4,157,847 6.3757 26,509,188
- JPY 2,016,029 0.0554 111,688
- AUD 797 4.6220 3,686
29,004,379
Accounts receivable—
- HKD 2,119,096 0.8176 1,732,573
- USD 17,430,781 6.3757 111,133,429
- EUR 834,785 7.2197 6,026,900
118,892,902
Accounts payable -—
- HKD 246,968 0.8176 201,921
- USD 6,321,968 6.3757 40,306,973
- EUR 295,835 7.2197 2,135,837
- JPY 3,362,148 0.0554 186,263
- GBP 11,000 8.6064 94,670
42,925,664
- 153 -
CSG HOLDING CO., LTD.
Notes to the financial statements
for the year ended 31 December 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 The changes of consolidation scope
On 19 April 2021, the Group set up a subsidiary, Xi'an Csg Energy Saving Glass Technology Co., Ltd.
("Xi'an Energy Saving Company") and the Group has invested RMB 1,000,000.The Group owns 100%
of its equity.
On 25 June 2021, the Group set up a subsidiary, Anhui CSG Silicone Mingdu Mining Development Co.,
Ltd. ("Anhui Silicon Valley Mingdu Mining Company") and the Group has invested RMB 3,000,000. The
Group owns 60% of its equity.
On 09 October 2021, the Group set up a subsidiary, Guangxi CSG New Energy Materials Technology
Co., Ltd. ("Guangxi New Energy Materials Company") and the Group has invested RMB 31,000,000 .
The Group owns 100% of its equity.
On 11 November 2021, the Group set up a subsidiary, Qinghai CSG Sunrise New Energy Technology
Co., Ltd. ("Qinghai CSG New Energy") and the Group has not invested . The Group owns 100% of its
equity.
On 8 December 2021, the Group set up a subsidiary, Hefei CSG Energy Saving Material Intelligent
Manufacturing Co., Ltd. ("Hefei Energy Saving Company") and the Group has not invested . The Group
owns 100% of its equity.
On 9 December 2021, the Group set up a subsidiary, Shenzhen CSG New Energy Industry
Development Co., Ltd. ("Shenzhen CSG New Energy") and the Group has not invested . The Group
owns 100% of its equity.
On 13 December 2021, the Group set up a subsidiary, Zhaoqing CSG New Energy Technology Co., Ltd.
(referred to as "Zhaoqing CSG New Energy") and the Group has not invested . The Group owns 100%
of its equity.
6 Equity in other entities
(1) Interest in subsidiaries
(a) Structure of the enterprise group
As at 31 December 2021, information of the Company’s major subsidiaries is set out below:
Shareholding
Major (%)
business Place of
location registration Scope of business Direct Indirect
Chengdu, Chengdu, Development, production and sales of
Chengdu CSG PRC PRC special glass 75% 25%
Chengdu, Chengdu, Development, production and sales of
Sichuan CSG Energy Conservation PRC PRC special glass and processing of glass 75% 25%
Tianjin, Tianjin, Development, production and sales of
Tianjin Energy Conservation PRC PRC special glass 75% 25%
Dongguan, Dongguan,
Dongguan CSG Engineering PRC PRC Intensive processing of glass 75% 25%
Dongguan, Dongguan,
Dongguan CSG Solar PRC PRC Production and sales of solar glass 75% 25%
Dongguan, Dongguan, Production and sales of hi-tech green battery
Dongguan CSG PV-tech PRC PRC and components 100% -
Yichang, Yichang, Production and sales of high-purity silicon
Yichang CSG PolysSilicon PRC PRC materials 75% 25%
Wujiang, Wujiang,
Wujiang CSG Engineering PRC PRC Intensive processing of glass 75% 25%
Yongqing, Yongqing,
Hebei CSG PRC PRC Production and sales of special glass 75% 25%
Wujiang, Wujiang,
Wujiang CSG PRC PRC Production and sales of special glass 100% -
- 154 -
CSG HOLDING CO., LTD.
Notes to the financial statements
for the year ended 31 December 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
Hong Kong, Hong Kong,
China Southern Glass (Hong Kong) Limited PRC PRC Investment holding 100% -
Xianning, Xianning,
Xianning CSG PRC PRC Production and sales of special glass 75% 25%
Xianning, Xianning,
Xianning CSG Energy-Saving PRC PRC Intensive processing of glass 75% 25%
Qingyuan, Qingyuan, Production and sales of ultra-thin electronic
Qingyuan CSG Energy-Saving PRC PRC glass 100% -
Shenzhen, Shenzhen,
Shenzhen CSG Financial Leasing Co., Ltd. PRC PRC Finance leasing, etc. 75% 25%
Jiangyou, Jiangyou, Production and sales of silica and its by-
Jiangyou CSG Mining Development Co. Ltd. PRC PRC products 100% -
Shenzhen, Shenzhen, Production and sales of display component
Shenzhen CSG Display: PRC PRC products 60.80% -
Zhaoqing Zhaoping Production and sales of various special
Zhaoqing Energy Saving Company PRC PRC glasses 100% -
Zhaoqing Zhaoqing Production and sales of various special
Zhaoqing Automobile Company PRC PRC glasses 100% -
Fengyang, Fengyang,
Anhui Energy Company PRC PRC Production and sales of solar glass products 100% -
Fengyang, Fengyang,
Anhui Quartz Company PRC PRC Production and sales of solar glass products 100% -
Anhui Silicon Valley Mingdu Mining Fengyang, Fengyang,
Company PRC PRC Mineral resources exploitation 60%
Xi’an, Xi’an, Production and sales of various special
Xi'an energy conservation company , PRC , PRC glasses 55% 45%
Longgang, Longgang, Production and sales of various special
Guangxi New Energy Materials Company , PRC , PRC glasses 75% 25%
- 155 -
CSG HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(b) Subsidiaries with significant minority interests
Profit or loss attributable to Dividends distributed to
Shareholding of minority shareholders for the minority shareholders for the Minority interests
minority year ended 31 December year ended 31 December as at 31
Subsidiaries shareholders 2021 2021 December 2021
Shenzhen CSG Display 39.2% 31,774,809 - 404,409,486
(c) Main financial information of important non-wholly-owned subsidiaries
31 December 2021
Current Non-current Total assets Current Non-current Total liabilities
assets assets liabilities liabilities
Shenzhen CSG
Display 210,979,056 1,378,748,179 1,589,727,235 448,244,735 54,572,497 502,817,232
2021
Total comprehensive Cash flows from
Revenue Net profit
income operating activities
Shenzhen CSG
Display 746,690,439 88,873,060 88,873,060 196,460,847
7 Segment information
The Group's business activities are classifcated by product and service as follows:
- Glass segment, engaged in production and sales of float glass and engineering glass and the
silica for the production thereof, etc.
- Solar energy segment, engaged in manufacturing and sales of polycrystalline silicon and solar
battery and applications, etc.
- Solar and other segment divisions, responsible for the production and sales of polysilicon and
solar cell module products, photovoltaic energy development and other 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.
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.
- 156 -
CSG HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(a) Segment information as at and for the year ended 31 December 2021 is as follows:
Electronic glass Solar and other
Flat glass and displays industries Unallocated Elimination Total
Revenue from external customers 10,999,313,889 1,720,865,369 908,553,830 300,562 - 13,629,033,650
Inter-segment revenue 70,650,930 177,299,135 170,023,434 294,564,450 (712,537,949) -
Interest income 2,657,543 624,472 216,356 39,203,658 - 42,702,029
Interest expenses 1,563,185 (12,363,737) 21,288 (178,078,899) - (188,858,163)
Asset impairment losses (4,057,296) (174,808,890) (699,571,526) (103,227,834) - (981,665,546)
Credit impairment loss (105,309,554) (443,724) 371,850 (48,513,009) - (153,894,437)
Depreciation and amortisation expenses (607,940,780) (228,084,049) (113,738,670) (6,233,562) - (955,997,061)
Total profit/(loss) 2,657,577,760 264,148,325 (673,621,904) (330,701,998) - 1,917,402,183
Income tax (expenses)/income (339,464,522) (28,170,648) 1,933,346 9,548,095 - (356,153,729)
Net profit/(loss) 2,318,113,238 235,977,677 (671,688,558) (321,153,903) - 1,561,248,454
Total assets 9,771,021,576 3,646,349,435 2,550,051,949 3,971,941,550 - 19,939,364,510
Total liabilities 3,549,162,935 593,290,450 323,987,924 3,606,448,966 - 8,072,890,275
Increase in non-current assets 1,697,686,349 48,535,659 105,317,713 5,243,175 - 1,856,782,896
- 157 -
CSG HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(b) Segment information as at and for the year ended 31 December 2020 is as follows:
Electronic glass Solar and other
Flat glass and displays industries Unallocated Elimination Total
Revenue from external customers 8,666,093,920 1,083,132,521 916,115,834 5,911,170 - 10,671,253,445
Inter-segment revenue 43,677,341 4,229,293 72,667,092 212,060,390 (332,634,116) -
Interest income 2,140,733 1,471,264 402,262 49,390,402 - 53,404,661
Interest expenses (30,646,424) (12,125,558) (15,354,096) (215,274,796) 92,815 (273,308,059)
Asset impairment losses (7,746,072) (1,038,135) (648,001,824) (81,722,063) - (738,508,094)
Credit impairment loss 31,741 (229,992) (3,965,108) (1,559,260) - (5,722,619)
Depreciation and amortisation expenses (601,759,885) (164,905,846) (150,718,578) (5,908,658) - (923,292,967)
Total profit/(loss) 1,711,049,125 185,625,578 (475,933,924) (315,049,653) - 1,105,691,126
Income tax (expenses)/income (222,653,492) (23,877,511) (49,229,706) 2,022,564 - (293,738,145)
Net profit/(loss) 1,488,395,633 161,748,067 (525,163,630) (313,027,089) - 811,952,981
Total assets 8,618,862,132 3,784,793,003 3,227,533,456 2,251,726,307 - 17,882,914,898
Total liabilities 2,075,265,799 688,502,626 326,834,407 4,176,428,180 - 7,267,031,012
Increase in non-current assets 337,211,912 615,441,677 128,344,547 6,281,914 - 1,087,280,050
- 158 -
CSG HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
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 2021 2020
Mainland 12,355,492,022 9,538,506,225
Overseas 1,273,541,628 1,132,747,220
13,629,033,650 10,671,253,445
Total non-current assets 31 December 2021 31 December 2020
Mainland 12,982,067,078 12,652,550,312
Hong Kong, PRC 12,403,499 12,463,605
12,994,470,577 12,665,013,917
No revenue from a single customer exceeded 10% or more of the Group’s revenue.
8 Related parties and related party transactions
(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 Note 6(1).
(3) General information of the Group’s associate
None
(4) Other related parties information
Relationship with the Group
Shenzhen Jushenghua Co.,Ltd. (“Jushenghua”) Persons acting in concert with the first majority
shareholder of the Group
Shenzhen Qianhai Ruinan Investment LLP Controlled by the former key management
personnel of the Croup
Xinjiang Qianhai United Property & Casualty Related parties of the company's largest
Insurance shareholder of taking concerted action
Suzhou Baoqi Logistics Co., Ltd. Related parties of the company's largest
shareholder of taking concerted action
Wuxi Baowan Department Store Co., Ltd. Nanjing Related parties of the company's largest
Yanziji Store shareholder of taking concerted action
Baoneng Department Store Retail Co., Ltd. Related parties of the company's largest
shareholder of taking concerted action
Shenzhen Baoneng Auto Sales & Service Co., Ltd. Related parties of the company's largest
shareholder of taking concerted action
- 159 -
CSG HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
Guangdong Chubang Food Co., Ltd. Related parties of the company's largest
shareholder of taking concerted action
(5) Related party transactions
(a) Purchase and sales of goods, provision and receiving of labour
Related Transaction pricing
Related parties transaction policy 2021 2020
Suzhou Baoqi Logistics
Co., Ltd. Receive service Market price 6,851,844 2,117,344
Wuxi Baowan
Department Store Co.,
Ltd. Nanjing Yanziji Purchase of
Store goods Market price - 2,866,100
Shenzhen Baoneng
Auto Sales & Service Purchase of
Co., Ltd. goods Market price 1,171,470 -
Purchase of goods
and receive
Others service Market price 511,390 330,568
8,534,704 5,314,012
Selling goods and providing services
Related Transaction pricing
Related parties transaction content policy 2021 2020
Shenzhen Jushenghua
Co., Ltd. Sales of goods Market price 500 12,118,000
Guangdong Chubang
Food Co., Ltd. Sales of goods Market price - 1,500,000
Baoneng Department
Store Retail Co., Ltd. Sales of goods Market price - 899,940
Others Sales of goods Market price 659,185 4,485,120
659,685 19,003,060
Note: Other related parties will be listed together as they showed many companies and the amounts are
scattered
(b) Purchase of insurance
Related parties Related party transactions 2021 2020
Shenzhen Qianhai Ruinan Buy life insurance for
Investment LLP employees 5,541,857 5,086,401
- 160 -
CSG HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
Xinjiang Qianhai United Property
Buy car insurance
& Casualty Insurance 761,693 1,099,639
6,303,550 6,186,040
(c) Leases
Related parties Related party transactions 2021 2020
Rental factory and water
Others charges 1,062,524 -
1,062,524 -
(d) Gains on equity transfer
None
(e) Acquisition of equity
None
(f) Advances paid on behalf of related parties
None
(g) Remuneration of key management
2021 2020
Remuneration 25,749,501 23,628,100
(6) Accounts receivable from related parties
(a) Receivables
Related parties 31 December 2021 31 December 2020
Provision for Provision for
Carrying amount bad debts Carrying amount bad debts
Baoneng Department
Store Retail Co., Ltd. - - 192,000 (3,840)
Others 242,620 (4,819) 31,200 (624)
242,620 (4,819) 223,200 (4,464)
(b) payables
Related parties 2021 2020
Suzhou Baoqi Logistics Co., Ltd. 2,731,013 2,617,344
Others 133,408 -
2,864,421 2,617,344
- 161 -
CSG HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
9 Contingencies
Nil.
10 Commitments
(1) Capital expenditure commitments
Capital expenditures contracted for by the Group at the balance sheet date but are not yet necessary
to be recognized on the balance sheet are as follows:
31 December 2021 31 December 2020
Buildings, machinery and equipment 2,994,615,272 552,259,223
11 Events after the balance sheet date
(a) Statement of profit distribution after balance sheet date
Amount
Proposed distribution of cash dividends 614,138,421
According to the resolution of the board of directors on April 21, 2022, the board of directors proposed
that the company distribute a cash dividend of RMB 614,138,421 to all shareholders. This proposal is
approving by the general meeting of shareholders. The cash dividend proposed after the balance sheet
date has not been confirmed in this financial statement as a liability.
12 Other significant events
(1) 171 million special funds for the introduction of talents was follow-up progress.
(a) Matter description
As at December 10, 2012, the People's Government of Yichang City and the Company signed the
Cooperation Agreement on Fine Glass and Ultrathin Electronic Glass Project ;The management
committee of Yichang High-tech Industrial Development Zone agreed to establish a RMB 171 million
talent fund as a special fund subsidy for the introduction of talents and the placement of talented people
in 2014. The company of Yichang CSG PolysSilicon Co.Ltd. is responsible for formulating the housing
resettlement subsidy program and supervising the use of this special fund.The funds were subsidized
by the government to the company, but Yichang CSG PolysSilicon Co., Ltd. received this amount and
transferred it to Yichang Hongtai Real Estate Co., Ltd. in full amount without proper approval from the
company's board of directors and other relevant authorities. ( Yichang Hongtai Real Estate Co.,Ltd. is a
company jointly indirect controlled by part of the former natural executives of the company. The
company has no equity relationship with the company ) .Yichang CSG PolysSilicon Co., Ltd. received
the above fund and transferred it to Yichang Hongtai Real Estate Co., Ltd. in full and also handled the
accounting treatment according to the collecting and paying. In 2017, Prior period accounting error from
above matters was corrected by company.
(b) Subsequent progress
Shenzhen Municipal People's Procuratorate (hereinafter referred to as "Deep Retrieval") with Zeng Nan
and others suspected of trusting the interests of listed companies, filed a public prosecution to the
Shenzhen Intermediate People's Court, tried by the court, and made a criminal involvement for Zeng
Nan etc. Decision of prosecution. On December 15, 2021, the company filed a litigation of Zeng Nan
and others and Yichang Hongtai Real Estate Co., Ltd., and the Shenzhen Intermediate People's Court
was officially accepted on January 28, 2022.
- 162 -
CSG HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(c) Receivable talent fund from Yichang Hongtai Real Estate Co., Ltd.
December 31, 2021 December 31, 2020
Bad debt Bad debt
Book balance preparation Book balance preparation
Other Yichang Hongtai Real
receivables Estate Company 171,000,000 (51,300,000) 171,000,000 (3,420,000)
(i) The management of the company is expected to get back this receivables risk further this year,
so the single-item declaration is prepared.
13 Financial instrument and risk
The Group's activities expose it to a variety of financial risks: market risk (primarily foreign exchange risk
and interest rate risk), credit risk and liquidity risk. The Group's overall risk management program
focuses on the unpredictability of financial market and seeks to reduce potential adverse effects on the
Group's financial performance.
(1) Market risk
(a) Foreign exchange risk
The Group’s major operational activities are carried out in Mainland China and a majority of the
transactions are denominated in RMB. Some export business, however, is denominated in foreign
currencies. In addition, the Group is exposed to foreign exchange risk arising from the recognized
assets and liabilities, and future transactions denominated in foreign currencies, primarily with respect
to US dollars and Hong Kong dollar. The Group monitors the scale of foreign currency transactions,
foreign currency assets and liabilities, and adjust settlement currency of export business, to furthest
reduce the currency risk.
(1) Market risk (Cont'd)
On 31 December 2021, book values in RMB equivalent of the Group’s assets and liabilities
denominated in foreign currencies are summarized below:
31 December 2021
USD HKD Others Total
Financial assets denominated
in foreign currency -
Cash at bank and on hand 26,509,188 2,379,817 115,374 29,004,379
Receivables 111,133,429 1,732,573 6,026,900 118,892,902
137,642,617 4,112,390 6,142,274 147,897,281
Financial liabilities denominated
in foreign currency -
Payables 40,306,973 201,921 2,416,770 42,925,664
40,306,973 201,921 2,416,770 42,925,664
31 December 2020
USD HKD Others Total
Financial assets denominated
in foreign currency -
Cash at bank and on hand 16,599,430 5,997,799 1,109,657 23,706,886
- 163 -
CSG HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
Receivables 84,333,333 1,392,919 6,699,153 92,425,405
100,932,763 7,390,718 7,808,810 116,132,291
Financial liabilities denominated
in foreign currency -
Short-term borrowings - 63,120,000 - 63,120,000
Payables 47,632,226 3,868,806 4,443,735 55,944,767
47,632,226 66,988,806 4,443,735 119,064,767
On 31 December 2021, 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 8,273,530 lower/higher (31 December 2020: approximately RMB 4,530,546
lower/higher) for various financial assets and liabilities denominated in USD.
Other changes in exchange rate had no significant impact on the Group's operating activities except
USD dollar.
(b) Foreign exchange risk
The Group's interest rate risk arises from long-term interest bearing debts including long-term
borrowings and bonds payable. Financial liabilities issued at floating rates expose the Group to cash
flow interest rate risk. Financial liabilities issued at fixed rates expose the Group to fair value interest
rate risk. The Group determines the relative proportions of its fixed rate and floating rate contracts
depending on the prevailing market conditions. As at 31 December 2021, the Group’s long-term interest-
bearing debts at and fixed rates and floating rates are illustrated below:
31 December 2021 31 December 2020
Debt at fixed rates 2,404,372,257 2,105,274,331
Debt at floating rates 1,061,274,897 742,000,000
3,465,647,154 2,847,274,331
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
- 164 -
CSG HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
parties, their credit history and other factors such as current market conditions. The credit history of the
customers is regularly monitored by the Group. In respect of customers with a poor credit history, the
Group will use written payment reminders, or shorten or cancel credit periods, to ensure the overall
credit risk of the Group is limited to a controllable extent.
(3) Liquidity risk
Cash flow forecasting is performed by each subsidiary of the Group and aggregated by the Group’s
finance department in its headquarters. The Group’s finance department at its headquarters monitors
rolling forecasts of the Group's short-term and long-term liquidity requirements to ensure it has
sufficient cash reserve, while maintaining sufficient headroom on its undrawn committed borrowing
facilities from major financial institutions so that the Group does not breach borrowing limits or
covenants on any of its borrowing facilities to meet the short-term and long-term liquidity requirements.
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 monitoring the payment of construction expenditure in terms of payment
time and amount.
The financial liabilities of the Group at the balance sheet date are analyzed by their maturity date
below at their undiscounted contractual cash flows:
31 December 2021
Within 1 year 1 to 2 years 2 to 5years Over 5 years Total
Short-term borrowings 182,299,506 - - - 182,299,506
Notes payable 400,662,713 - - - 400,662,713
Accounts payable 1,428,851,312 - - - 1,428,851,312
Other payables 289,440,477 - - - 289,440,477
Other current liabilities 40,099,309 - - - 40,099,309
Non-current liabilities due
within one year 514,569,537 - - - 514,569,537
Long-term payables - 168,258,062 - - 168,258,062
Long-term borrowings 60,580,998 374,241,583 889,057,539 363,125,181 1,687,005,301
Bonds payable 120,000,000 2,120,000,000 - - 2,240,000,000
3,036,503,852 2,662,499,645 889,057,539 363,125,181 6,951,186,217
31 December 2020
Within 1 year 1 to 2 years 2 to 5years Over 5 years Total
Short-term borrowings 357,872,322 - - - 357,872,322
Notes payable 144,851,192 - - - 144,851,192
Accounts payable 1,237,833,051 - - - 1,237,833,051
Other payables 287,332,992 - - - 287,332,992
Other current liabilities 34,586,292 - - - 34,586,292
- 165 -
CSG HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
Non-current liabilities due
within one year 951,180,309 - - - 951,180,309
Long-term borrowings 32,663,037 731,295,181 154,771,873 - 918,730,091
Bonds payable 120,000,000 120,000,000 2,027,741,935 - 2,267,741,935
3,166,319,195 851,295,181 2,182,513,808 - 6,200,128,184
14 Fair value estimates
Based on the lowest level input that is significant to the fair value measurement in its entirety, the fair
value hierarchy has the following levels:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or
liability, either directly or indirectly.
Level 3: Unobservable inputs for the asset or liability.
(a) Assets continuously measured at fair value
By December 31, 2021, the Group’s using assets and liabilities measured at fair value are listed three
levels as followings:
31 December 2021
Level 1 Level 2 Level 3 Total
Financial assets at fair value
through profit or loss
-Structural deposits - 999,600,000 - 999,600,000
Measured at fair value
through other comprehensive
income
-Receivables Financing - 297,046,123 - 297,046,123
-Investment property - 383,084,500 - 383,084,500
- 1,679,730,623 - 1,679,730,623
(b) Assets and liability that not measured but disclosed 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.
31 December 2021 31 December 2020
Carrying Carrying
amount Fair value amount Fair value
Financial liabilities
Medium term notes - - 800,000,000 803,364,000
Corporate bonds 1,996,587,330 2,014,330,000 1,994,020,348 1,987,041,277
1,996,587,330 2,014,330,000 2,794,020,348 2,790,405,277
The fair values of Corporate bonds and medium-term notes are the present value of the contractually
determined stream of future cash flows at the rate of interest applied at that time by the market to
- 166 -
CSG HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
instruments of comparable credit status and providing substantially the same cash flows on the same
terms, thereinto medium term notes belong to Level 2.
15 Capital management
The Group’s capital management policies aim to safeguard the Group’s ability to continue as a going
concern in order to provide returns for shareholders and benefits for other stakeholders, and to maintain
an optimal capital structure to reduce the cost of capital.
In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid
to shareholders, refund capital to shareholders, issue new shares or sell assets to reduce debts.
The Group is not subject to external mandatory capital requirements, and monitors capital on the basis
of gearing ratio.
As at 31 December 2021 and 31 December 2020, the Group's gearing ratio is as follows:
31 December 2021 31 December 2020
Total liabilities 8,072,890,275 7,267,031,012
Total assets 19,939,364,510 17,882,914,898
Gearing ratio 40% 41%
16 Notes to the Company’s financial statements
(1) Other receivables
31 December 2021 31 December 2020
Dividend receivable 250,000,000 249,087,257
Other receivables 2,649,091,405 3,554,821,112
2,899,091,405 3,803,908,369
1、 Dividend receivable
31 December 2021 31 December 2020
Dividends receivable from subsidiaries 250,000,000 249,087,257
250,000,000 249,087,257
2、 Other receivables
31 December 2021 31 December 2020
Receivables from related parties 2,526,427,812 3,383,284,639
Others 174,005,021 176,588,183
2,700,432,833 3,559,872,822
Less: Provision for bad debts (51,341,428) (5,051,710)
2,649,091,405 3,554,821,112
- 167 -
CSG HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2、 Other receivables (Cont'd)
(a) The ageing of other receivables is analysed as follows:
31 December 2021 31 December 2020
Within 1 year 2,528,274,319 3,384,862,561
Over 1year 172,158,514 175,010,261
2,700,432,833 3,559,872,822
(b) Other receivables are analysed by category as follows:
31 December 2021 31 December 2020
Provision for bad Provision for bad
Carrying amount debts Carrying amount debts
% of total Provision % of total Provision for
Amount balance for bad debts % Amount balance bad debts %
Provision for bad debts by groupings
- Group 1 3,005,021 - (40,708) 1% 175,037,217 5% (3,500,744) 2%
- Group 2 2,526,427,812 94% (720) - 3,383,284,639 95% - -
Provided for bad bebts individually 171,000,000 6% (51,300,000) 30% 1,550,966 - (1,550,966) 100%
2,700,432,833 100% (51,341,428) 2% 3,559,872,822 100% (5,051,710) -
(c) For other receivables provided for bad debts by portfolio, the expected credit impairment loss for the
portfolio is as follows:
31 December 2021 31 December 2020
Carrying amount Provision for bad debts Carrying amount Provision for bad debts
Amount Amount % Amount Amount %
Group 1 3,005,021 (40,708) 1% 175,037,217 (3,500,744) 2%
Group 2 2,526,427,812 (720) - 3,383,284,639 - -
2,529,432,833 (41,428) - 3,558,321,856 (3,500,744) -
(d) Provision for bad debts
bad debts Stage 1 Stage 2 Stage 3
Expected credit Lifetime expected
Lifetime expected
losses in the credit losses
credit losses Total
following 12 (credit
(credit unimpaired)
months (grouping) impaired)）
1 January 2021 3,500,744 - 1,550,966 5,051,710
Amounts in current year - - - -
——Transferred stage 2 - - - -
——Transferred stage 3 (3,420,000) - 3,420,000 -
—— Reversed stage 2 - - - -
—— Reversed stage 1 - - - -
Increased in current year 11,619 - 48,552,325 48,563,944
Reversed in current year (50,935) - - (50,935)
Write-off in current year - - (2,223,291) (2,223,291)
31 December 2021 41,428 - 51,300,000 51,341,428
- 168 -
CSG HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(e) As at 31 December 2021, the Group’s top five entities with the largest other receivables balances are
analysed as below:
Relationship with
the Group Amount Ageing % of total balance
Dongguan Solar Energy Subsidiary 544,204,144 Within 1 year 20%
Qingyuan Energy Saving Company Subsidiary 419,921,121 Within 1 year 16%
Shenzhen Display Company Subsidiary 314,681,520 Within 1 year 12%
Xianning Photoelectric Corporation Subsidiary 262,911,269 Within 1 year 10%
CSG (Hong Kong) Co. Ltd. Subsidiary 240,438,085 Within 1 year 9%
1,782,156,139 67%
(2) Long-term equity investments
31 December 2021 31 December 2020
Subsidiaries (a) 6,277,391,694 5,859,507,870
Less: Impairment provision for investments in
subsidiaries (a) (15,000,000) (15,000,000)
6,262,391,694 5,844,507,870
- 169 -
CSG HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(a) Subsidiaries
Movement in current year
31 December Decrease in Provision for Cash dividends
2020 investment 31 December 2021 impairment loss declared in current year
Chengdu CSG 151,397,763 - - 151,397,763 - 309,767,142
Sichuan Energy Conservation Company 119,256,949 - - 119,256,949 - -
Tianjin Energy Conservation Company 247,833,327 - - 247,833,327 - 109,166,321
Dongguan Engineering Company 198,276,242 - - 198,276,242 - -
Dongguan Solar Energy Company 355,120,247 - - 355,120,247 - -
Yichang Silicon Material Company 640,856,170 - - 640,856,170 - -
Wujiang Engineering Company 254,401,190 - - 254,401,190 - -
Hebei CSG 266,189,705 - - 266,189,705 - 222,189,079
CSG (Hong Kong) Co., Ltd. 87,767,304 - - 87,767,304 - 250,000,000
Wujiang CSG 567,645,430 - - 567,645,430 - -
Jiangyou Sands Company 102,415,096 - - 102,415,096 - -
Xianning Float Company 181,116,277 - - 181,116,277 - -
Xianning Energy Saving Company 165,452,035 - - 165,452,035 - 73,898,157
Qingyuan Energy Saving Company 885,273,105 - - 885,273,105 - 100,628,677
Shenzhen CSG Financial Leasing Co., Ltd. 133,500,000 - - 133,500,000 - -
Shenzhen CSG Photovoltaic Energy Co., Ltd. (i) 100,335,176 - (100,335,176) - - -
Shenzhen Display Company 550,765,474 - - 550,765,474 - -
Zhaoqing Energy Saving Company 129,701,000 20,299,000 - 150,000,000 - -
Zhaoqing CSG Automotive Glass Co., Ltd. 43,201,000 14,920,000 - 58,121,000 - -
Dongguan CSG PV-tech 382,112,183 - - 382,112,183 - -
Anhui Energy Company 20,000,000 435,000,000 - 455,000,000 - -
Anhui Quartz Company 3,000,000 34,000,000 - 37,000,000 - -
Shenzhen CSG Medical Company 20,000,000 - - 20,000,000 - -
Anhui Silicon Valley Mingdu Mining Company - 3,000,000 - 3,000,000 - -
Xi'an energy conservation company - 1,000,000 - 1,000,000 - -
Guangxi New Energy Materials Company - 1,000,000 - 1,000,000 - -
Nanba (Suzhou) Corporate Headquarters
Management Co., Ltd. - 9,000,000 - 9,000,000 - -
Others (ii) 253,892,197 - - 253,892,197 (15,000,000) -
5,859,507,870 518,219,000 (100,335,176) 6,277,391,694 (15,000,000) 1,065,649,376
- 170 -
CSG HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(i) During the year, the company traded its subsidiary Shenzhen CSG Photovoltaic Energy Co., Ltd.
to its wholly-owned subsidiary Dongguan CSG PV-tech and Shenzhen CSG PV Energy Co., Ltd.
were changed to sub-subsidiary Company.
(ii) Subsidiaries for which impairment provision has been made are those that have basically ceased
operations in previous years. The company has made provision for impairment of long-term equity
investments in these companies in previous years based on recoverable amounts.
(3) Other payables
31 December 2021 31 December 2020
Interest payable 93,596,328 131,513,019
Other payables 1,973,876,551 870,622,683
2,067,472,879 1,002,135,702
1、 Interest payable
31 December 2021 31 December 2020
Interest of medium-term notes - 37,955,556
Interest of short-term borrowings 94,444 53,256
Interest of long-term borrowings with periodic
payments of interest and return of principal at maturity 1,243,819 1,246,142
Interest of corporate bonds 92,258,065 92,258,065
93,596,328 131,513,019
2、 Other payables
31 December 2021 31 December 2020
Subsidiaries 1,959,266,523 861,745,492
Others 14,610,028 8,877,191
1,973,876,551 870,622,683
(4) Investment income
2021 2020
Investment income from long-term equity investment
under cost method 1,065,649,376 1,108,523,992
Proceeds from long-term equity transfer 196,665,194 25,261,102
Income from structural deposits etc 16,692,229 2,654,504
1,279,006,799 1,136,439,598
There is no significant restriction on the remittance of investment income to the Company.
- 171 -
CSG HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
I Statement of non-recurring gains and losses
2021 2020
Gains or losses on disposal of non-current assets 1,493,248 1,158,984
Government grants recognised in profit or loss for
current period (104,507,242) (99,660,400)
Income from external entrusted loans - (5,546,384)
Fair value movement of investment property - (179,911,200)
Reversal of provision for impairment of receivables
subject to separate impairment test (1,429,653) -
Income from structural deposits etc. (16,847,647) (2,654,504)
Non-operating income and expenses other than
aforesaid items 13,526,210 6,284,556
(107,765,084) (280,328,948)
Effect of income tax 14,201,899 38,334,180
Effect of minority interests (after tax) 3,774,138 2,645,633
Total non-recurring gains and losses (89,789,047) (239,349,135)
(1) Basis for preparation of statement of non-recurring gains and losses
Under the requirements in Explanatory Announcement No. 1 on Information Disclosure by Companies Offering
Securities to the Public – Non-recurring Profit or Loss [2008] from CSRC, non-recurring profit or loss refer to
those arises from transactions and events that are not directly relevant to ordinary activities, or that are relevant
to ordinary activities, but are extraordinary and not expected to recur frequently that would have an influence
on users of financial statements making economic decisions on the financial performance and profitability of
an enterprise.
II Return on net assets and earnings per share
Earnings per share
Weighted average
Basic earnings per Diluted earnings per
return on net assets
share share
2021 2020 2021 2020 2021 2020
Net profit attributable to
ordinary shareholders of
the Company 14.13 7.91 0.50 0.25 0.50 0.25
Net profit attributable to
ordinary shareholders of
the Company after
deducting non-recurring
gains and losses 13.30 5.48 0.47 0.18 0.47 0.18
- 172 -
