CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2022
Financial Report of Semi-annual Report 2022
I.Auditors’ Report
Whether the Semi-annual Report has been audited or not
□ Yes √ No
The Company's Semi-annual Report has not been audited.
II.Financial Statements
All figures in the Notes to the Financial Statements are in RMB.
1. Consolidated Balance Sheet
Prepared by CSG Holding Co., Ltd.
June 30, 2022
Unit: RMB
Item June 30, 2022 January 1, 2022
Current assets：
Cash at bank and on hand 2,870,042,541 2,765,925,906
Trading financial assets 1,209,000,000 999,600,000
Notes receivable 445,375 19,220,984
Accounts receivable 842,283,667 730,525,687
Receivables financing 582,328,808 297,046,123
Advances to suppliers 235,326,059 76,097,276
Other receivables 201,090,652 183,696,711
Inventories 1,766,912,399 1,093,805,525
Other current assets 68,616,670 140,705,298
Total current assets 7,776,046,171 6,306,623,510
Non-current assets
Investment property 383,084,500 383,084,500
Fixed assets 9,336,413,529 8,566,515,026
Construction in progress 2,809,337,684 2,461,088,650
Right of use assets 9,034,632 9,911,935
Intangible assets 1,209,525,068 1,167,611,402
Development expenditure 91,718,822 72,019,362
Goodwill 130,147,859 130,147,859
Long-term prepaid expenses 3,234,021 3,013,721
Deferred tax assets 196,661,447 255,185,923
Other non-current assets 525,974,043 584,162,622
Total non-current assets 14,695,131,605 13,632,741,000
Total assets 22,471,177,776 19,939,364,510
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2022
1. Consolidated Balance Sheet (continued)
Prepared by CSG Holding Co., Ltd.
June 30, 2022
Unit: RMB
Item 30-Jun-22 1-Jan-22
Current liabilities ：
Short-term borrowings 468,108,522 180,770,000
Notes payable 549,939,628 400,662,713
Accounts payable 1,796,932,531 1,428,851,312
Contract liabilities 413,885,125 335,188,642
Employee benefits payable 287,729,142 426,212,979
Taxes payable 154,652,150 185,009,681
Other payables 221,866,936 289,440,477
Of which: interest payable 36,640,548 95,001,362
Non-current liabilities due within one year 2,371,913,539 503,820,548
Other current liabilities 47,730,142 40,099,309
Total current liabilities 6,312,757,715 3,790,055,661
Non-current liabilities
Long-term borrowings 3,161,136,468 1,469,059,824
Bonds payable 1,996,587,330
lease liability 220,138
Long-term payables 149,062,955 168,258,062
Deferred income 495,313,618 564,129,128
Deferred tax liabilities 91,256,653 84,580,132
Total non-current liabilities 3,896,769,694 4,282,834,614
Total liabilities 10,209,527,409 8,072,890,275
Shareholders’ equity
Share capital 3,070,692,107 3,070,692,107
Capital surplus 596,997,085 596,997,085
Other comprehensive income 165,368,070 159,200,530
Special reserves 1,852,703 7,296,397
Surplus reserve 1,144,887,510 1,144,887,510
Undistributed profits 6,837,623,394 6,450,587,417
Total equity attributable to shareholders of
11,817,420,869 11,429,661,046
parent company
Minority shareholders' equity 444,229,498 436,813,189
Total shareholders' equity 12,261,650,367 11,866,474,235
Total liabilities and shareholders' equity 22,471,177,776 19,939,364,510
Legal Representative:Chen Lin Principal in charge of accounting: Wang Wenxin Principal of the financial department:
Wang Wenxin
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2022
2. Balance Sheet of the Parent Company
Prepared by CSG Holding Co., Ltd.
June 30, 2022
Unit: RMB
Item June 30, 2022 January 1, 2022
Current assets
Cash at bank and on hand 2,017,872,177 1,961,406,035
Trading financial assets 1,209,000,000 999,600,000
Accounts receivable 1,996,267
Receivables Financing 15,299,671
Advances to suppliers 699,982 639,164
Other receivables 2,624,297,723 2,899,091,405
Of which: dividends receivable 250,000,000 250,000,000
Other current assets 1,226
Total current assets 5,869,167,046 5,860,736,604
Non-current assets
Long-term equity investments 6,899,675,709 6,262,391,694
Fixed assets 9,002,995 11,509,029
Intangible assets 3,382,512 2,102,548
Other non-current assets 104,236,952 104,109,111
Total non-current assets 7,016,298,168 6,380,112,382
Total assets 12,885,465,214 12,240,848,986
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2022
2. Balance Sheet of the Parent Company(continued)
Prepared by CSG Holding Co., Ltd.
June 30, 2022
Unit: RMB
Item June 30, 2022 January 1, 2022
Current liabilities
Short-term borrowings 300,000,000 100,000,000
Bills payable 13,523,441
Accounts payable 464,790 315,684
Contract liabilities 3,339,466
Employee benefits payable 31,843,275 68,534,315
Taxes payable 15,815,743 8,316,132
Other payables 2,075,266,331 2,067,472,879
Of which: interest payable 34,012,995 93,596,328
Non-current liabilities due within one
year 2,232,931,024 400,000,000
Other current liabilities 434,130
Total current liabilities 4,673,618,200 2,644,639,010
Non-current liabilities
Long-term borrowings 1,245,000,000 690,000,000
Bonds payable 1,996,587,330
Deferred income 172,312,500 172,500,000
Total non-current liabilities 1,417,312,500 2,859,087,330
Total liabilities 6,090,930,700 5,503,726,340
Shareholders’ equity
Share capital 3,070,692,107 3,070,692,107
Capital surplus 741,824,399 741,824,399
Surplus reserve 1,159,432,870 1,159,432,870
Undistributed profits 1,822,585,138 1,765,173,270
Total shareholders' equity 6,794,534,514 6,737,122,646
Total liabilities and shareholders' equity 12,885,465,214 12,240,848,986
Legal Representative:Chen Lin Principal in charge of accounting: Wang Wenxin Principal of the financial department:
Wang Wenxin
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2022
3. Consolidated Income Statement
Prepared by CSG Holding Co., Ltd.
Unit: RMB
Item Half year of 2022 Half year of 2021
I. Total revenue 6,519,216,676 6,614,802,538
Of which:Business income 6,519,216,676 6,614,802,538
II. Total business cost 5,480,144,295 4,992,720,799
Of which:Business cost 4,637,645,927 4,126,627,145
Tax and surcharge 61,280,622 73,966,054
Sales expenses 133,906,652 125,326,015
Administrative expenses 318,635,812 354,914,704
R&D expenses 265,877,930 224,886,882
Financial expenses 62,797,352 86,999,999
Of which: interest expense 91,984,604 101,970,419
Interest income 30,756,704 20,024,847
Plus: Other income 99,302,552 36,553,804
Investment income (“- “for loss) 16,413,695 3,672,330
Credit impairment loss (“- “for loss) -1,492,222 -2,524,048
Asset impairment loss (“- “for loss) 1,456 -26,753,082
Income on disposal assets (“- “for loss) 12,745,461 137,638
III. Operational profit (“- “for loss) 1,166,043,323 1,633,168,381
Plus: non-operational income 15,132,978 7,551,798
Less: non-operational expenditure 3,660,070 16,461,985
IV. Total profit (“- “for loss) 1,177,516,231 1,624,258,194
Less: Income tax expenses 168,925,524 255,280,290
V. Net profit (“- “for net loss) 1,008,590,707 1,368,977,904
(I) Classification by business continuity
1. Net profit from continuing operations (“-” for net loss) 1,008,590,707 1,368,977,904
2. Net profit from discontinued operations (“-” for net
loss)
(II) Classification by ownership
1. Equity attributable to shareholders of parent company 1,001,174,398 1,352,517,465
2.Minority shareholder gains and losses 7,416,309 16,460,439
VI. Other comprehensive income net after tax 6,167,540 1,322,491
Other comprehensive income net after tax attributable to
shareholders of parent company 6,167,540 1,322,491
(I) Other comprehensive income that will be reclassified
into profit and loss
(II) Other comprehensive income reclassified to profit or
6,167,540 1,322,491
loss
1.Differences on translation of foreign currency financial
6,167,540 1,322,491
statements
Other comprehensive income, net of tax attributable to
minority shareholders
VII. Total comprehensive income 1,014,758,247 1,370,300,395
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2022
Total comprehensive income attributable to shareholders
1,007,341,938 1,353,839,956
of parent company
Total comprehensive income attributable to minority
7,416,309 16,460,439
shareholders
VIII. Earnings per share:
(I) Basic earnings per share 0.33 0.44
(II) Diluted earnings per share 0.33 0.44
Legal Representative:Chen Lin Principal in charge of accounting: Wang Wenxin Principal of the financial department:
Wang Wenxin
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2022
4. Income Statement of the Parent Company
Prepared by CSG Holding Co., Ltd.
Unit: RMB
Item Half year of 2022 Half year of 2021
I. Revenue 230,198,412 42,342,857
Less: Business cost 15,015,892
Tax and surcharge 1,508,969 674,374
Sales expenses 1,500,585
Administrative expenses 158,605,939 91,345,095
R & D expenses 616,965
Financial expenses 54,002,083 76,018,822
Of which: interest expense 84,259,999 94,186,512
Interest income 28,380,771 17,977,849
Plus: Other income 5,677,313 2,018,355
Investment income(“- “for loss) 665,374,823 718,475,642
Credit impairment loss (“- “for loss) -85,084 -9,473
Income on disposal assets (“- “for loss) 2,477,876 6,893,580
II. Operating profit 673,009,872 601,065,705
Add: Non-operating income 29,967
Less: Non-operating expenses 1,459,583 15,026,836
III. Total profit (“- “for loss) 671,550,289 586,068,836
Less: Income tax expenses
IV. Net profit (“- “for loss) 671,550,289 586,068,836
(I) Net profit for continuing operations(“- “for loss) 671,550,289 586,068,836
(II) Net profit from discontinued operations(“- “for loss)
VI. Total comprehensive income 671,550,289 586,068,836
VII. Earnings per share
Legal Representative:Chen Lin Principal in charge of accounting: Wang Wenxin Principal of the financial department:
Wang Wenxin
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2022
5. Consolidated Cash Flow Statement
Prepared by CSG Holding Co., Ltd.
Unit: RMB
Item Half year of 2022 Half year of 2021
I. Cash flows from operating activities
Cash received from sales of goods or rendering of services 6,933,269,669 7,148,379,280
Refund of taxes and surcharges 209,272,049 33,207,751
Cash received relating to other operating activities 87,236,568 178,825,175
Subtotal of cash inflow from operating activities 7,229,778,286 7,360,412,206
Cash paid for goods and services 4,720,858,626 3,907,366,000
Cash paid to and on behalf of employees 967,549,535 888,450,173
Payments of taxes and surcharges 434,697,790 619,574,024
Cash payments relating to other operating activities 203,869,214 246,776,634
Subtotal of cash outflow from operating activities 6,326,975,165 5,662,166,831
Net cash flows from/(used in) operating activities 902,803,121 1,698,245,375
II. Cash flows from investing activities
Cash received from investment recovery 1,988,760,000 1,182,000,000
Cash received from investment income 15,609,996 3,559,719
Net cash received from disposal of fixed assets, intangible
13,563,172 777,451
assets and other long-term assets
Cash received relating to other investing activities 32,136,351
Subtotal of cash inflows from investing activities 2,017,933,168 1,218,473,521
Cash paid to acquire fixed assets, intangible assets and other
1,632,778,700 738,492,345
long-term assets
Cash paid for investment 2,198,160,000 1,644,000,000
Cash paid relating to other investing activities 19,138,102 6,911,853
Subtotal of cash outflows from investing activities 3,850,076,802 2,389,404,198
Net cash flows (used in)/from investing activities -1,832,143,634 -1,170,930,677
III. Cash flows from financing activities
Cash received from borrowings 2,277,155,766 605,996,933
Cash received relating to other financing activities 206,753
Subtotal of cash inflows from financing activities 2,277,362,519 605,996,933
Cash repayments of borrowings 428,340,521 1,099,975,831
Cash payments for interest expenses and distribution of
791,223,957 508,082,947
dividends or profits
Cash payments relating to other financing activities 24,165,012 390,507
Subtotal of cash outflows from financing activities 1,243,729,490 1,608,449,285
Net cash flows (used in)/from financing activities 1,033,633,029 -1,002,452,352
IV. Effect of foreign exchange rate changes on cash and cash
3,195,681 -1,217,711
equivalents
V. Net increase/(decrease) in cash and cash equivalents 107,488,197 -476,355,365
Add: Cash and cash equivalents at beginning of current
2,756,477,572 2,124,028,196
period
VI. Cash and cash equivalents at end of current period 2,863,965,769 1,647,672,831
Legal Representative:Chen Lin Principal in charge of accounting: Wang Wenxin Principal of the financial department:
Wang Wenxin
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2022
6. Cash Flow Statement of the Parent Company
Prepared by CSG Holding Co., Ltd.
Unit: RMB
Item Half year of 2022 Half year of 2021
I. Cash flows from operating activities
Cash received from sales of goods or rendering of services 191,082,575
Cash received relating to other operating activities 39,349,241 29,031,997
Subtotal of cash inflow from operating activities 230,431,816 29,031,997
Cash paid to and on behalf of employees 179,110,652 77,605,388
Payments of taxes and surcharges 7,463,566 11,908,472
Cash paid relating to other operating activities 16,953,909 31,121,887
Sub-total of cash outflows 203,528,127 120,635,747
Net cash flows from/(used in) operating activities 26,903,689 -91,603,750
II. Cash flows from investing activities
Cash received from investment recovery 1,988,760,000 1,090,000,000
Cash received from investment income 664,571,124 967,450,288
Net cash received from disposal of fixed assets, intangible
2,477,876 101,560
assets and other long-term assets
Sub-total of cash inflows 2,655,809,000 2,057,551,848
Cash paid to acquire fixed assets, intangible assets and other
long-term assets 3,611,833 2,669,478
Cash paid for investing activities 2,835,444,015 1,839,799,000
Sub-total of cash outflows 2,839,055,848 1,842,468,478
Net cash flows (used in)/from investing activities -183,246,848 215,083,370
III. Cash flows from financing activities
Cash received from borrowings 900,000,000 314,000,000
Cash received relating to other financing activities 379,666,653 143,736,716
Sub-total of cash inflows 1,279,666,653 457,736,716
Cash repayments of borrowings 310,000,000 857,300,000
Cash payments for interest expenses and distribution of
dividends or profits 756,638,060 497,947,983
Cash payments relating to other financing activities 1,017,256
Subtotal of cash outflows from financing activities 1,067,655,316 1,355,247,983
Net cash flows (used in)/from financing activities 212,011,337 -897,511,267
IV. Effect of foreign exchange rate changes on cash and cash
equivalents 1,808,472 372,354
V.Net increase/(decrease) in cash and cash equivalents 57,476,650 -773,659,293
Add: Cash and cash equivalents at beginning of current
1,960,395,527 1,071,200,364
period
VI. Cash and cash equivalents at end of current period 2,017,872,177 297,541,071
Legal Representative:Chen Lin Principal in charge of accounting: Wang Wenxin Principal of the financial department:
Wang Wenxin
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2022
7. Consolidated Statement of Changes in Owners’ Equity
Prepared by CSG Holding Co., Ltd.
Amount of the current period
Unit: RMB
Half year of 2022
Owners’ Equity Attributable to the Parent Company
Item Minority Total
Other shareholders shareholders'
Capital Special Surplus Undistributed
Share capital comprehensi Subtotal ' equity equity
surplus reserves reserve profits
ve income
I. Balance at the end of the previous
3,070,692,107 596,997,085 159,200,530 7,296,397 1,144,887,510 6,450,587,417 11,429,661,046 436,813,189 11,866,474,235
year
II. Balance at the beginning of
3,070,692,107 596,997,085 159,200,530 7,296,397 1,144,887,510 6,450,587,417 11,429,661,046 436,813,189 11,866,474,235
current year
III. Amount of change in current
6,167,540 -5,443,694 387,035,977 387,759,823 7,416,309 395,176,132
term(“- “for decrease)
(I) Total amount of the
6,167,540 1,001,174,398 1,007,341,938 7,416,309 1,014,758,247
comprehensive income
(II) Capital paid in and reduced by
owners
(III) Profit distribution -614,138,421 -614,138,421 -614,138,421
1. Appropriations to owners (or
-614,138,421 -614,138,421 -614,138,421
shareholders)
(IV) Internal carry-forward of
owners’ equity
(V) Specific reserves -5,443,694 -5,443,694 -5,443,694
1. Withdrawal in the period 4,853,948 4,853,948 4,853,948
2. Used in the period 10,297,642 10,297,642 10,297,642
(VI) Others
IV. Balance at the end of the period 3,070,692,107 596,997,085 165,368,070 1,852,703 1,144,887,510 6,837,623,394 11,817,420,869 444,229,498 12,261,650,367
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2022
7. Consolidated Statement of Changes in Owners’ Equity(continued)
Prepared by CSG Holding Co., Ltd.
Amount of the previous period
Unit: RMB
Half year of 2021
Owners’ Equity Attributable to the Parent Company
Item Minority Total
Other shareholders' shareholders'
Capital Special Surplus Undistributed
Share capital comprehensi Subtotal equity equity
surplus reserves reserve profits
ve income
I. Balance at the end of the previous 3,070,692,10 10,269,00
596,997,085 161,816,819 1,036,948,422 5,336,266,412 10,212,989,847 402,894,039 10,615,883,886
year 7 2
II. Balance at the beginning of 3,070,692,10 10,269,00
596,997,085 161,816,819 1,036,948,422 5,336,266,412 10,212,989,847 402,894,039 10,615,883,886
current year 7 2
III. Amount of change in current -1,166,41
1,322,491 1,045,448,254 1,045,604,335 16,460,439 1,062,064,774
term(“- “for decrease) 0
(I) Total amount of the
1,322,491 1,352,517,465 1,353,839,956 16,460,439 1,370,300,395
comprehensive income
(II) Capital paid in and reduced by
owners
(III) Profit distribution -307,069,211 -307,069,211 -307,069,211
1. Appropriations to owners (or
-307,069,211 -307,069,211 -307,069,211
shareholders)
(IV) Internal carry-forward of
owners’ equity
-1,166,41
(V) Specific reserves -1,166,410 -1,166,410
0
1. Withdrawal in the period
2. Used in the period 1,166,410 1,166,410 1,166,410
(VI) Others
IV. Balance at the end of the period 3,070,692,10
596,997,085 163,139,310 9,102,592 1,036,948,422 6,381,714,666 11,258,594,182 419,354,478 11,677,948,660
7
Legal Representative:Chen Lin Principal in charge of accounting: Wang Wenxin Principal of the financial department:Wang Wenxin
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2022
8. Statement of changes in owner's equity of the parent company
Prepared by CSG Holding Co., Ltd.
Amount of the current period
Unit: RMB
Half year of 2022
Item Total shareholders'
Share capital Capital surplus Surplus reserve Undistributed profits
equity
I. Balance at the end of the previous year 3,070,692,107 741,824,399 1,159,432,870 1,765,173,270 6,737,122,646
II. Balance at the beginning of current year 3,070,692,107 741,824,399 1,159,432,870 1,765,173,270 6,737,122,646
III. Amount of change in current term(“- “for
57,411,868 57,411,868
decrease)
(I) Total amount of the comprehensive income 671,550,289 671,550,289
(II) Capital paid in and reduced by owners
(III) Profit distribution -614,138,421 -614,138,421
1. Appropriations to owners (or shareholders) -614,138,421 -614,138,421
(IV) Internal carry-forward of owners’ equity
(V) Special reserves
(VI) Others
IV. Balance at the end of the period 3,070,692,107 741,824,399 1,159,432,870 1,822,585,138 6,794,534,514
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2022
8. Statement of changes in owner's equity of the parent company(continued)
Prepared by CSG Holding Co., Ltd.
Amount of the previous period
Unit: RMB
Half year of 2021
Item Total shareholders'
Share capital Capital surplus Surplus reserve Undistributed profits
equity
I. Balance at the end of the previous year 3,070,692,107 741,824,399 1,051,493,782 1,100,790,694 5,964,800,982
II. Balance at the beginning of current year 3,070,692,107 741,824,399 1,051,493,782 1,100,790,694 5,964,800,982
III. Amount of change in current term(“- “for
278,999,625 278,999,625
decrease)
(I) Total amount of the comprehensive income 586,068,836 586,068,836
(II) Capital paid in and reduced by owners
(III) Profit distribution -307,069,211 -307,069,211
1. Appropriations to owners (or shareholders) -307,069,211 -307,069,211
(IV) Internal carry-forward of owners’ equity
(V) Special reserves
(VI) Others
IV. Balance at the end of the period 3,070,692,107 741,824,399 1,051,493,782 1,379,790,319 6,243,800,607
Legal Representative:Chen Lin Principal in charge of accounting: Wang Wenxin Principal of the financial department:Wang Wenxin
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2022
III. Basic Information of the Company
CSG Holding Co Ltd (the “Company”) was incorporated in September 1984, known as China South Glass Company, as a joint
venture enterprise by Hong Kong China Merchants Shipping Co., LTD (香港招商局轮船股份有限公司), Shenzhen Building
Materials Industry Corporation (深圳建筑材料工业集团公司), China North Industries Corporation (中国北方工业深圳公司) and
Guangdong International Trust and Investment Corporation (广东国际信托投资公司). The Company was registered in Shenzhen,
Guangdong Province of the People's Republic of China and its headquarters is located in Shenzhen, Guangdong Province of the
People's Republic of China. The Company issued RMB-denominated ordinary shares (“A-share”) and foreign shares (“B-share”)
publicly in October 1991 and January 1992 respectively, and was listed on Shenzhen Stock Exchange on February 1992. As at June
30, 2022, the registered capital was RMB 3,070,692,107, with nominal value of RMB1 per share.
The Company and its subsidiaries (collectively referred to as the “Group”) are mainly engaged in the manufacture and sales of flat
glass, specialized glass, engineering glass, energy saving glass, silicon related materials, polysilicon and solar components and
electronic-grade display device glass and the construction and operation of photovoltaic plant etc.
The financial statements were authorized for issue by the Board of Directors on August 29, 2022.
Details on the major subsidiaries included in the consolidated scope in current year were stated in the Note.
IV. Basis of the preparation of financial statements
1. Basis of preparation
The financial statements are prepared in accordance with the Accounting Standards for Business Enterprises - Basic Standard, and
the specific accounting standards and other relevant regulations issued by the Ministry of Finance on 15 February 2006 and in
subsequent periods (hereafter collectively referred to as “the Accounting Standard for Business Enterprises” or “CAS”), and
Information Disclosure Rule No. 15 for Companies with Public Traded Securities - Financial Reporting General Provision issued by
China Security Regulatory Commission.
2. Going concern
This financial report is prepared on the basis of going concern.
V. Summary of significant accounting policies and accounting estimates
The Group determines its specific accounting policies and accounting estimates to manufacturing and operation feature. It mainly
reflected in expected credit impairment losses of receivables was measured, inventory costing method, Depreciation of fixed assets
and amortization of intangible assets, criteria for determining capitalised development expenditure, and timing for revenue
recognition.
Refer to the notes for details of the key judgements adopted by the Group in applying important accounting policies.
1. Statement of compliance with the Accounting Standards for Business Enterprises
The financial statements of the Company for the first half year of 2022 truly and completely present the financial position as of June
30, 2022and the operating results, cash flows and other information for the first half year of 2022of the Group and the Company in
compliance with the Accounting Standards for Business Enterprises.
2. Accounting period
The Company’s accounting year starts on 1 January and ends on 31 December.
3. Operating cycle
The Company’s operating cycle starts on 1 January and ends on 31 December.
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2022
4. Recording currency
The recording currency is Renminbi (RMB).
5. Business combinations
(a)Business combinations involving entities under common control
The consideration paid and net assets obtained by the absorbing party in a business combination are measured at book value. If the
merged party was acquired by the ultimate controlling party from a third party in the previous year, the assets and liabilities of the
merged party (including the goodwill formed by the ultimate controlling party’s acquisition of the merged party). The difference
between book value of the net assets obtained from the combination and book value of the consideration paid for the combination is
treated as an adjustment to capital surplus (share premium). If the capital surplus (share premium) is not sufficient to absorb the
difference, the remaining balance is adjusted against retained earnings. Costs directly attributable to the combination are included in
profit or loss in the period in which they are incurred. Transaction costs associated with the issue of equity or debt securities for the
business combination are included in the initially recognised amounts of the equity or debt securities.
(b) Business combinations involving enterprises not under common control
The cost of combination and identifiable net assets obtained by the acquirer in a business combination are measured at fair value at
the acquisition date. Where the cost of the combination exceeds the acquirer’s interest in the fair value of the acquiree’s identifiable
net assets, the difference is recognised as goodwill; where the cost of combination is lower than the acquirer’s interest in the fair
value of the acquiree’s identifiable net assets, the difference is recognised in profit or loss for the current period. Costs directly
attributable to the combination are included in profit or loss in the period in which they are incurred. Transaction costs associated
with the issue of equity or debt securities for the business combination are included in the initially recognised amounts of the equity
or debt securities.
6. Preparation method of consolidated financial statements
The consolidated financial statements comprise the financial statements of the Company and all of its subsidiaries.
Subsidiaries are consolidated from the date on which the Group obtains control and are de-consolidated from the date that such
control ceases. For a subsidiary that is acquired in a business combination involving enterprises under common control, it is included
in the consolidated financial statements from the date when it, together with the Company, comes under common control of the
ultimate controlling party. The portion of the net profits realised before the combination date is presented separately in the
consolidated income statement.
In preparing the consolidated financial statements, where the accounting policies and the accounting periods of the Company and
subsidiaries are inconsistent, the financial statements of the subsidiaries are adjusted in accordance with the accounting policies and
the accounting period of the Company. For subsidiaries acquired from business combinations involving enterprises not under
common control, the individual financial statements of the subsidiaries are adjusted based on the fair value of the identifiable net
assets at the acquisition date.
All significant intra-group balances, transactions and unrealised profits are eliminated in the consolidated financial statements. The
portion of subsidiaries’ equity and the portion of a subsidiaries’ net profits and losses and comprehensive incomes for the period not
attributable to Company are recognised as minority interests and presented separately in the consolidated financial statements under
equity, net profits and total comprehensive income respectively. Unrealised profits and losses resulting from the sales of assets by the
Company to its subsidiaries are fully eliminated against net profit attributable to shareholders of the parent company. Unrealised
profits and losses resulting from the sales of assets by a subsidiary to the Company are eliminated and allocated between net profit
attributable to shareholders of the parent company and non-controlling interests in accordance with the allocation proportion of the
parent company in the subsidiary. Unrealised profits and losses resulting from the sales of assets by one subsidiary to another are
eliminated and allocated between net profit attributable to shareholders of the parent company and non-controlling interests in
accordance with the allocation proportion of the parent in the subsidiary.
After the control over the subsidiary has been gained, whole or partial minority equities of the subsidiary owned by minority
shareholders are acquired from the subsidiary’s minority shareholders. In the consolidated financial statements, the subsidiary's assets
and liabilities are reflected with amount based on continuous calculation starting from the acquisition date or consolidation date.
Capital surplus is adjusted according to the difference between newly increased long-term equity investment arising from acquisition
of minority equity and the share of net assets calculated based on current shareholding ratio that the parent company is entitled to.
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The share is subject to continuous calculation starting from the acquisition date or consolidation date. If the capital surplus (capital
premium or share capital premium) is not sufficient to absorb the difference, the remaining balance is adjusted against retained
earnings.
If the accounting treatment of a transaction which considers the Group as an accounting entity is different from that considers the
Company or its subsidiaries as an accounting entity, it is adjusted from the perspective of the Group.
7. Criteria for determining cash and cash equivalents
Cash and cash equivalents refer to cash in hand, deposits that can be used for payment at any time, and investments with short
holding periods, strong liquidity, easy conversion into known amounts of cash, and low risk of value changes.
8.Translating of foreign currency operations and foreign currency report form
(a) Foreign currency transaction
Foreign currency transactions are translated into RMB using the exchange rates prevailing at the dates of the transactions.
On the balance sheet date, monetary items denominated in foreign currencies are translated into RMB using the spot exchange rates
on the balance sheet date. Exchange differences arising from these translations are recognised in profit or loss for the current period,
except for those attributable to foreign currency borrowings that have been taken out specifically for the acquisition or construction
of qualifying assets, which are capitalised as part of the cost of those assets. Non-monetary items denominated in foreign currencies
that are measured at historical costs are translated at the balance sheet date using the spot exchange rates at the date of the
transactions. The effect of exchange rate changes on cash is presented separately in the cash flow statement.
(b)Conversion of foreign currency financial statements
The asset and liability items in the balance sheets for overseas operations are translated at the spot exchange rates on the balance
sheet date. Among the shareholders’ equity items, the items other than “undistributed profits” are translated at the spot exchange rates
of the transaction dates. The income and expense items in the income statements of overseas operations are translated at the spot
exchange rates of the transaction dates. The differences arising from the above translation are presented separately in the
shareholders’ equity. The cash flows of overseas operations are translated at the spot exchange rates on the dates of the cash flows.
The effect of exchange rate changes on cash is presented separately in the cash flow statement.
9.Financial instrument
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of
another entity. A financial asset or a financial liability is recognised when the Group becomes a party to the contractual provisions of
the instrument.
(a) Financial assets
(i) Classification and measurement
Based on the business model for managing the financial assets and the contractual cash flow characteristics of the financial assets
financial assets are classified as: (1) financial assets at amortised cost; (2) financial assets at fair value through other comprehensive
income; (3) financial assets at fair value through profit or loss.
The financial assets are measured at fair value at initial recognition. Related transaction costs that are attributable to the acquisition of
the financial assets are included in the initially recognised amounts, except for the financial assets at fair value through profit or loss,
the related transaction costs of which are recognised directly in profit or loss for the current period. Accounts receivable or notes
receivable arising from sales of products or rendering of services (excluding or without regard to significant financing components)
are initially recognised at the consideration that is entitled to be charged by the Group as expected.
Debt instruments
The debt instruments held by the Group refer to the instruments that meet the definition of financial liabilities from the perspective of
the issuer, and are measured in the following ways.
Measured at amortised cost
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The objective of the Group's business model is to hold the financial assets to collect the contractual cash flows, and the contractual
cash flow characteristics are consistent with a basic lending arrangement, which gives rise on specified dates to the contractual cash
flows that are solely payments of principal and interest on the principal amount outstanding. The interest income of such financial
assets is recognised using the effective interest method. Such financial assets mainly comprise cash at bank and on hand placements
with and loans to banks and other financial institutions measured at amortised cost, accounts receivable, factoring receivables, loans
and advances, other receivables and long-term receivables. Long-term receivables that are due within one year (inclusive) as from the
balance sheet date are included in the current portion of non-current assets.
Financial assets at fair value through other comprehensive income:
The objective of the Group's business model is to hold the financial assets to collect the contractual cash flows and selling as target
and the contractual cash flow characteristics are consistent with a basic lending arrangement. Such financial assets are measured at
fair value and their changes are included in other comprehensive income, but impairment losses or gains, exchange gains and losses,
and interest income calculated by the effective interest rate method are all included in the current profit and loss. Such financial
assets mainly comprise - receivable financing and other financial debt investment. Other financial debt investment that are due within
one year (inclusive) as from the balance sheet date are included in the current portion as other current assets.
Measured at fair value through profit or loss:
Debt instruments held by the Group that are not divided into those at amortised cost, or those measured at fair value through other
comprehensive income, are measured at fair value through profit or loss and included in financial assets held for trading. At initial
recognition, the Group designates a portion of financial assets as at fair value through profit or loss to eliminate or significantly
reduce an accounting mismatch. Financial assets that are due within one year (inclusive) as from the balance sheet date and are
expected to be held over one year are included in other non-current financial assets.
Equity instruments
Investments in equity instruments, over which the Group has no control, joint control or significant influence, are measured at fair
value through profit or loss under financial assets held for trading; investments in equity instruments expected to be held over one
year as from the balance sheet date are included in other non-current financial assets.
In addition, a portion of certain investments in equity instruments not held for trading are designated as financial assets at fair value
through other comprehensive - income under other investments in equity instruments. The relevant dividend income of such financial
assets is recognised in profit or loss for the current period.
(ii) Impairment
The Group confirms the loss provision based on expected credit losses for financial assets measured at amortised cost, debt
instrument investments at fair value through other comprehensive income, and financial guarantee contracts. based on expected credit
losses (ECL) and recognizes allowances for losses.
Giving consideration to reasonable and supportable information on past events, current conditions and forecasts of future economic
conditions, as well as the default risk weight , the expected credit loss was confirmed .
On each balance sheet date, the expected credit losses of financial instruments at different stages are measured respectively.
12-month ECL provision is recognised for financial instruments in Stage 1 that have not had a significant increase in credit risk since
initial recognition; lifetime ECL provision is recognised for financial instruments in Stage 2 that have had a significant increase in
credit risk yet without credit impairment since initial recognition; and lifetime ECL provision is recognised for financial instruments
in Stage 3 that have had credit impairment since initial recognition.
For the financial instruments with lower credit risk on the balance sheet date, the Group assumes there is no significant increase in
credit risk since initial recognition and recognises the 12-month ECL provision.
For the financial instruments in Stage 1, Stage 2 and with lower credit risk, the Group calculates the interest income by applying the
effective interest rate to the gross carrying amount (before deduction of the impairment provision). For the financial instrument in
-Stage 3, the interest income is calculated by applying the effective interest rate to the amortised cost (after deduction of the
impairment provision from the gross carrying amount).
For notes and accounts receivables and factoring receivables arising from daily business activities such as selling commodities and
providing labor services, the Group recognises the lifetime expected credit loss provision regardless of whether there exists a
significant financing component.
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In case the expected credit losses of an individually assessed financial asset cannot be evaluated with reasonable cost, the Group
divides the receivables into certain groupings based on credit risk characteristics, and calculates the expected credit losses for the
groupings. Basis for determined groupings and method for provision are as follows:
Notes receivables Portfolio 1 Bank acceptance notes Expected credit loss method
Notes receivables Portfolio 2 Trade acceptance notes Expected credit loss method
Accounts receivables Portfolio 1 Receivables non-related third party Expected credit loss method
Accounts receivables Portfolio 2 Receivables related party Expected credit loss method
Other receivables Portfolio 1 Receivables non-related third party Expected credit loss method
Other receivables Portfolio 2 Receivables related party Expected credit loss method
For notes and accounts receivables and receivable financing arising from daily business activities such as selling commodities and
providing labor services, the Group refers to historical credit loss experience, combined with current conditions and predictions of
future economic conditions. In addition to notes receivable, factoring receivables and other receivables classified as a combination,
the Group refers to historical credit loss experience, combines current conditions and predictions of future economic conditions, and
passes default risk exposure and future 12 The expected credit loss rate within a month or the entire duration is calculated as the
expected credit loss.
The Group recognises the loss provision made or reversed into profit or loss for the current period. For debt instruments that are held
at fair value and whose changes are included in other comprehensive income, the Group adjusts other comprehensive income while
accounting for impairment losses or gains in the current profit or loss.
(iii) Derecognition
A financial asset is derecognised when any of the below criteria is met: (1) the contractual rights to receive the cash flows from the
financial asset expire; (2) the financial asset has been transferred and the Group transfers substantially all the risks and rewards of
ownership of the financial asset to the transferee; or (3) the financial asset has been transferred and the Group has not retained control
of the financial asset, although the Group neither transfers nor retains substantially all the risks and rewards of ownership of the
financial asset.
(b) Financial liabilities
Financial liabilities are classified as financial liabilities at amortised cost and financial liabilities at fair value through profit or loss at
initial recognition.
The Group's financial liabilities are mainly comprise financial liabilities at amortised cost, including bills payable, accounts payable,
and other payables. This type of financial liability is initially measured at its fair value after deducting transaction costs, and is
subsequently measured using the actual interest rate method. If the maturity is less than one year (including one year), it is listed as
current liabilities; Those with a maturity of less than one year (including one year) are listed as current liabilities; those with a
maturity of more than one year but due within one year (including one year) from the balance sheet date are listed as non-current
liabilities due within one year. The rest are listed as non-current liabilities.
A financial liability is derecognised or partly derecognised when the underlying present obligation is discharged or partly discharged.
The difference between the carrying amount of the derecognised part of the financial liability and the consideration paid is
recognised in profit or loss for the current period.
(c) Determination of fair value of financial instruments
The fair value of a financial instrument that is traded in an active market is determined at the quoted price in the active market. The
fair value of a financial instrument that is not traded in an active market is determined by using a valuation technique. In valuation,
the Group adopts valuation techniques applicable in the current situation and supported by adequate available data and other
information, selects inputs with the same characteristics as those of assets or liabilities considered in relevant transactions of assets or
liabilities by market participants, and gives priority to the use of relevant observable inputs. When relevant observable inputs are not
available or feasible, unobservable inputs are adopted.
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10.Inventories
(a)Classification
Inventories refer to manufacturing sector, including raw materials, work in progress, finished goods and turnover materials, and are
measured at the lower of cost and net realisable value.
(b)Issued Inventory costing method
Cost is determined using the weighted average method. The cost of finished goods and work in progress comprise raw materials,
direct labour and systematically allocated production overhead based on the normal production capacity.
(c) Amortisation methods of low value consumables and packaging materials
Turnover materials include low value consumables and packaging materials, which are expensed when issued.
(d) The determination of net realisable value and the method of provision for decline in the value of inventories
Provision for decline in the value of inventories is determined at the excess amount of book values of the inventories over their net
realisable value. Net realisable value is determined based on the estimated selling price in the ordinary course of business, less the
estimated costs to completion and estimated costs necessary to make the sale and related taxes.
(e) The Group adopts the perpetual inventory system.
11. Assets classified as held for sale
A non-current asset or a disposal group is classified as held for sale when all of the following conditions are satisfied: (1) the
non-current asset or the disposal group is available for immediate sale in its present condition subject to terms that are traditionally
and customary for sales; (2) the Group has made a resolution and obtained appropriate approval for disposal of the non-current asset
or the disposal group, and the transfer is to be completed within one year.
Non-current assets (except for financial assets, investment properties at fair value and deferred tax assets) that meet the recognition
criteria for held for sale are recognized at the amount equal to the lower of the fair value less costs to sell and book value. The
difference between fair value less costs to sell and carrying amount, should be presented as impairment loss.
Such non-current assets and assets included in disposal groups as classified as held for sale are accounted for as current assets; while
liabilities included in disposal groups classified as held for sale are accounted for as current liabilities, and are presented separately in
the balance sheet.
A discontinued operation is a component of the Group that either has been disposed of or is classified as held for sale, and is
separately identifiable operationally and for financial reporting purposes, and satisfies one of the following conditions: (1) represents
a separate major line of business or geographical area of operations; (2) is part of a single coordinated plan to dispose of a separate
major line of business or geographical area of operations; and (3) is a subsidiary acquired exclusively with a view to resale.
The discontinued operation profits on income statement presentation have included the profits and loss of operation and disposal.
12.Long-term equity investments
Long-term equity investments comprise the Company’s long-term equity investments in its subsidiaries, and the Group’s long-term
equity investments in its associates.
Subsidiaries are the investees over which the Company is able to exercise control. Associates are the investees that the Group has
significant influence on their financial and operating policies.
Investments in subsidiaries are measured using the cost method in the Company’s financial statements, and adjusted by using the
equity method when preparing the consolidated financial statements. Investments in associates are accounted for using the equity
method.
(a)Initial recognition of investment cost
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For long-term equity investments formed in business combination: when obtained from business combinations involving entities
under common control, the long-term equity investment is stated at carrying amount of equity for the combined parties at the time of
merger; when the long-term equity investment obtained from business combinations involving entities not under common control,
the investment is measured at combination cost.
For long-term equity investments not formed in business combination: the one paid by cash is initially measured at actual purchase
price; the long-term investment obtained by issuing equity securities is stated at fair value of equity securities as initial investment
cost..
(b)Subsequent measurement and recognition of related profit or loss
For long-term equity investments accounted for using the cost method, they are measured at the initial investment costs, and cash
dividends or profit distribution declared by the investees are recognised as investment income in profit or loss.
For long-term equity investments accounted for using the equity method, where the initial investment cost of a long-term equity
investment exceeds the Group’s share of the fair value of the investee’s
identifiable net assets at the acquisition date, the long-term equity investment is measured at the initial investment cost; where the
initial investment cost is less than the Group’s share of the fair value of the investee’s identifiable net assets at the acquisition date,
the difference is included in profit or loss and the cost of the long-term equity investment is adjusted upwards accordingly.
Under the equity method, the Group recognises the investment income according to its share of net profit or loss of the investee. The
Group discontinues recognising its share of the net losses of an investee after book values of the long-term equity investment
together with any long-term interests that in substance form part of the investor’s net investment in the investee are reduced to zero.
However, if the Group has obligations for additional losses and the criteria with respect to recognition of provisions
under the accounting standards on contingencies are satisfied, the Group continues recognising the investment losses and the
provisions. For changes in owners’ equity of the investee other than those arising from its net profit or loss, its proportionate share is
directly recorded into capital surplus, provided that the proportion of the shareholding of the Group in the investee remains
unchanged. Book value of the investment is reduced by the Group’s share of the profit distribution or cash dividends declared by an
investee. The unrealised profits or losses arising from the intra-group transactions amongst the Group and its investees are eliminated
in proportion to the Group’s equity interest in the investees, and then based on which the investment gains or losses are recognised.
Any losses resulting from transactions between the Group and its investees attributable to asset impairment losses are not eliminated.
(c)Basis for determining existence of control, jointly control or significant influence over investees
The term "control" refers to the power in the investees, to obtain variable returns by participating in the related business activities of
the investees, and the ability to affect the returns by exercising its power over the investees.
The term "significant influence" refers to the power to participate in the formulation of financial and operating policies of an
enterprise, but not the power to control, or jointly control, the formulation of such policies with other parties.
(d)Impairment of long-term equity investments
Book value of long-term equity investments in subsidiaries and associates is reduced to the recoverable amount when the recoverable
amount is less than book value.
13.Investment property
Investment property includes leased land use rights, land use rights held and provided for to transfer after appreciation and leased
building and construction.
Investment properties are initially measured at acquisition cost. The cost of outsourcing Investment property includes the purchase
price, relevant taxes and other expenditures that can be directly attributable to the asset; the cost of self-built Investment property is
determined by the construction of the asset. The composition of the necessary expenditures incurred before the usable state.
Investment property adopts the fair value model for subsequent measurement without depreciation or amortization. On the balance
sheet date, the book value of the investment properties are initially measured at acquisition cost is adjusted based on the fair value of
the investment properties are initially measured at acquisition cost. The difference between the fair value and the original book value
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2022
will be calculated into the current profit and loss.
When the use of an Investment property is changed to self-use, the investment property is converted into fixed assets or intangible
assets from the date of change, and the book value and fair value of the fixed assets and intangible assets are determined based on the
fair value of the investment property on the conversion date. The difference with the original book value of the investment property is
included in the current profit and loss. When the purpose of self-use real estate is changed to earning rent or capital appreciation,
from the date of change, the fixed assets or intangible assets are converted into investment properties are initially measured at
acquisition cost, and the fair value on the day of conversion is used as the book value of the investment properties are initially
measured at acquisition cost, and the fair value on the day of conversion If the value is less than the original book value of fixed
assets and intangible assets, the difference is included in the current profit and loss. If the fair value on the day of conversion is
greater than the original book value of fixed assets and intangible assets, the difference is included in other comprehensive income.
When an investment property is disposed of or permanently withdrawn from use and it is expected that no economic benefits can be
obtained from its disposal, the confirmation of the investment real estate shall be terminated. The disposal income from the sale,
transfer, scrapping or destruction of investment real estate shall deduct its book value and relevant taxes and shall be included in the
current profits and losses. If there is an amount included in other comprehensive income on the original conversion date, it will also
be carried forward and included in the current profit and loss.
14. Fixed assets
(1) Recognition condition
Fixed assets comprise buildings, machinery and equipment, motor vehicles and others.
Fixed assets are recognized when it is probable that the related economic benefits will probably flow to the Group and the costs can
be reliably measured. Fixed assets purchased or constructed by the Group are initially measured at cost at the acquisition date.
Subsequent expenditures incurred for a fixed asset are included in the cost of the fixed asset when it is probable that the associated
economic benefits will flow to the Group and the related cost can be reliably measured. Book value of the replaced part is
derecognized. All the other subsequent expenditures are recognized in profit or loss in the period in which they are incurred.
(2) Depreciation methods
Fixed assets are depreciated using the straight-line method to allocate the cost of the assets to their estimated residual values over
their estimated useful lives. For the fixed assets that have been provided for impairment loss, the related depreciation charge is
prospectively determined based upon the adjusted carrying amounts over their remaining useful lives.
The estimated useful lives, the estimated net residual values expressed as a percentage of cost and the annual depreciation rates of
fixed assets are as follows:
Item Depreciation method Estimated useful lives Estimated net Annual depreciation rate
residual value
Building Straight-line method 20 to 35 years 5% 2.71% to 4.75%
Machinery and equipment Straight-line method 8 to 20 years 5% 4.75% to 11.88%
Motor vehicles and others Straight-line method 5 to 8 years 0% 12.50% to 20.00%
The estimated useful life, the estimated net residual value of a fixed asset and the depreciation method applied to the asset are
reviewed, and adjusted as appropriate at each year-end.
(3) Book value of a fixed asset is reduced to the recoverable amount when the recoverable amount is below book value.
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(4) Disposal
A fixed asset is derecognized on disposal or when no future economic benefits are expected from its use or disposal. The amount of
proceeds from disposals on sale, transfer, retirement or damage of a fixed asset net ofits carrying amount and related taxes and
expenses is recognized in profit or loss for the current period.
15. Construction in progress
Construction in progress is recorded at actual cost. Actual cost comprises construction cost, installation cost, borrowing costs eligible
for capitalised condition and necessary expenditures incurred for its intended use. Actual cost also includes net of trial production
cost and trial production income before construction in progress is put into production.
Construction in progress is transferred to fixed assets when the assets are ready for their intended use, and depreciation begins from
the following month.
Book value of construction in progress is reduced to the recoverable amount when the recoverable amount is below book value.
16. Borrowing costs
The borrowing costs incurred by the group that are directly attributable to the acquisition and construction of an asset that needs a
substantially long period of time for its intended use commence to be capitalised and recorded as part of the cost of the asset when
expenditures for the asset and borrowing costs have been incurred, and the activities relating to the acquisition and construction that
are necessary to prepare the asset for its intended use have commenced. The capitalisation of borrowing costs ceases when the asset
under acquisition or construction becomes ready for its intended use and the borrowing costs incurred thereafter are recognized in
profit or loss for the current period. Capitalisation of borrowing costs is suspended during periods in which the acquisition or
construction of a fixed asset is interrupted abnormally and the interruption lasts for more than 3 months, until the acquisition or
construction is resumed.
For the specific borrowings obtained for the acquisition or construction of an asset qualifying for capitalisation, the amount of
borrowing costs eligible for capitalisation is determined by the amount of interest expenses actually incurred in the current period of
special borrowing deducting any interest income earned from depositing the unused specific borrowings in the banks or any
investment income arising on the temporary investment of those borrowings during the capitalisation period.
For the general borrowings obtained for the acquisition or construction of an asset qualifying for capitalisation, the amount of
borrowing costs eligible for capitalisation is determined by applying the weighted average effective interest rate of general
borrowings, to the weighted average of the excess amount of cumulative expenditures on the asset over the amount of specific
borrowings. The effective interest rate is the rate at which the estimated future cash flows during the period of expected duration of
the borrowings or applicable shorter period are discounted to the initial amount of the borrowings.
17 .Intangible assets
(1) Valuation method, useful life and impairment test
Intangible assets, mainly including land use rights, patents and proprietary technologies, exploitation rights and others, are measured
at cost.
(a) Land use rights
Land use rights are amortised on the straight-line basis over their approved use period of 30 to 70 years. If the acquisition costs of the
land use rights and the buildings located thereon cannot be reasonably allocated between the land use rights and the buildings, all of
the acquisition costs are recognized as fixed assets.
(b) Patents and proprietary technologies
Patents and proprietary technologies are amortised on a straight-line basis over the estimated use life.
(c) Exploitation rights
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2022
Exploitation rights are amortised on a straight-line basis over permitted exploitation periods on the exploitation certificate.
(d) Periodical review of useful life and amortization method
For an intangible asset with a finite useful life, review of its useful life and amortization method is performed at each year-end, with
adjustment made as appropriate.
(e) Impairment of intangible assets
Book value of intangible assets is reduced to the recoverable amount when the recoverable amount is below book value.
(2) Accounting policy for internal research and development expenditure
The expenditure on an internal research and development project is classified into expenditure on the research phase and expenditure
on the development phase based on its nature and whether there is material uncertainty that the research and development activities
can form an intangible asset at end of the project.
Expenditure on the research phase related to planned survey, evaluation and selection for research on manufacturing technique is
recognized in profit or loss in the period in which it is incurred. Prior to mass production, expenditure on the development phase
related to the design and testing phase in regards to the final application of manufacturing technique is capitalised only if all of the
following conditions are satisfied:
the development of manufacturing technique has been fully demonstrated by technical team;
management has approved the budget for the development of manufacturing technique;
there are research and analysis of pre-market research explaining that products manufactured with such technique are capable
of marketing;
There is sufficient technical and capital to support the development of manufacturing technique and subsequent mass
production; and the expenditure on manufacturing technique development can be reliably gathered.
Other development expenditures that do not meet the conditions above are recognized in profit or loss in the period in which they are
incurred. Development costs previously recognized as expenses are not recognized as an asset in a subsequent period. Capitalised
expenditure on the development phase is presented as development costs in the balance sheet and transferred to intangible assets at
the date that the asset is ready for its intended use.
18. Impairment of long-term assets
Investment properties,fixed assets, construction in progress, intangible assets with finite useful lives and long-term equity
investments in joint ventures and associates are tested for impairment if there is any indication that the assets may be impaired at the
balance sheet date; intangible assets not ready for their intended use are tested at least annually for impairment, irrespective of
whether there is any indication that they may be impaired. If the result of the impairment test indicates that the recoverable amount of
an asset is less than its carrying amount, a provision for impairment and an impairment loss are recognized for the amount by which
the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to
sell and the present value of the future cash flows expected to be derived from the asset. Provision for asset impairment is determined
and recognized on the individual asset basis. If it is not possible to estimate the recoverable amount of an individual asset, the
recoverable amount of a group of assets to which the asset belongs is determined. A group of assets is the smallest group of assets
that is able to generate independent cash inflows.
Goodwill that is separately presented in the financial statements is tested at least annually for impairment, irrespective of whether
there is any indication that it may be impaired. In conducting the test, book value of goodwill is allocated to the related asset groups
or groups of asset groups which are expected to benefit from the synergies of the business combination. If the result of the test
indicates that the recoverable amount of an asset group or group of asset groups, including the allocated goodwill, is lower than its
carrying amount, the corresponding impairment loss is recognized. The impairment loss is first deducted from book value of
goodwill that is allocated to the asset group or group of asset groups, and then deducted from book values of other assets within the
asset groups or groups of asset groups in proportion to book values of assets other than goodwill.
Once the above asset impairment loss is recognized, it will not be reversed for the value recovered in the subsequent periods.
19.Long-term prepaid expenses
Long-term prepaid expenses include the expenditures that have been incurred but should be recognised as expenses over more than
one year in the current and subsequent periods. Long-term prepaid expenses are amortised on the straight-line basis over the expected
beneficial period and are presented at actual expenditure net of accumulated amortisation.
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2022
20. Employee benefits
Employee benefits include short-term employee benefits, post-employment benefits, termination benefits and other long-term
employee benefits provided in various forms of consideration in exchange for service rendered by employees or compensations for
the termination of employment relationship.
(1) Accounting treatment method of short-term employee benefits
Short-term employee benefits include wages or salaries, bonuses, allowances and subsidies, staff welfare, medical care, work injury
insurance, maternity insurance, housing funds, labour union funds, employee education funds and paid short-term leave, etc. The
employee benefit liabilities are recognized in the accounting period in which the service is rendered by the employees, with a
corresponding charge to the profit or loss for the current period or the cost of relevant assets. Employee benefits which are
non-monetary benefits shall be measured at fair value.
(2)Accounting treatment method of post-employment benefits
The Group classifies post-employment benefit plans as either defined contribution plans or defined benefit plans. Defined
contribution plans are post-employment benefit plans under which the Group pays fixed contributions into a separate fund and will
have no obligation to pay further contributions; and defined benefit plans are post-employment benefit plans other than defined
contribution plans. During the reporting period, the Group's post-employment benefits mainly include basic pensions and
unemployment insurance, both of which belong to the defined contribution plans.
(3)Basic pensions
The Group’s employees participate in the basic pension plan set up and administered by local authorities of Ministry of Human
Resource and Social Security. Monthly payments of premiums on the basic pensions are calculated according to prescribed bases and
percentage by the relevant local authorities. When employees retire, local labour and social security institutions have a duty to pay
the basic pension insurance to them. The amounts based on the above calculations are recognized as liabilities in the accounting
period in which the service has been rendered by the employees, with a corresponding charge to the profit or loss for the current
period or the cost of relevant assets.
(4)Accounting treatment of dismissal benefits
The Group provides compensation for terminating the employment relationship with employees before the end of the employment
contracts or as an offer to encourage employees to accept voluntary redundancy before the end of the employment contracts. The
Group recognizes a liability arising from compensation for termination of the employment relationship with employees, with a
corresponding charge to profit or loss at the earlier of the following dates: 1) when the Group cannot unilaterally withdraw the offer
of termination benefits because of an employment termination plan or a curtailment proposal; 2) when the Group recognizes costs or
expenses related to the restructuring that involves the payment of termination benefits.
The dismissal benefits expected to be paid within one year since the balance sheet date are classified as current liabilities.
21. Estimated liabilities
Current obligations arising from enterprise restructuring, product quality assurance, onerous contracts, etc. are recognized as
estimated liabilities when the performance of such obligations is likely to lead to the outflow of economic benefits and the amount
can be measured reliably.
A provision is initially measured at the best estimate of the expenditure required to settle the related present obligation. Factors
surrounding a contingency, such as the risks, uncertainties and the time value of money, are taken into account as a whole in reaching
the best estimate of a provision. Where the effect of the time value of money is material, the best estimate is determined by
discounting the related future cash outflows. The increase in the discounted amount of the provision arising from passage of time is
recognized as interest expense.
Book value of provision is reviewed at each balance sheet date and adjusted to reflect the current best estimate.
The provisions expected to be paid within one year since the balance sheet date are classified as current liabilities.
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2022
22 .Share-based payments
Share-based payments are divided into equity-settled and cash-settled payments. The term "equity-settled share-based payment"
refers to a transaction in which an enterprise grants shares or other equity instruments as a consideration in return for services.
Equity-settled share-based payment The Group‘s stock optionstock option plan is the equity-settled share-based payment in exchange
of employees' services and is measured at the fair value of the equity instruments at grant date. The equity instruments are exercisable
after services in vesting period are completed or specified performance conditions are met. In the vesting period, the services
obtained in current period are included in relevant cost and expenses at the fair value of the equity instruments at grant date based on
the best estimate of the number of exercisable equity instruments, and capital surplus is increased accordingly. The Group makes the
best estimate of the number of vesting equity instruments based on the latest obtained changes in the number of vested employees,
whether the required performance conditions are met, and other follow-up information. If the subsequent information indicates the
number of exercisable equity instruments differs from the previous estimate, an adjustment is made and, on the exercise date, the
estimate is revised to equal the number of actual vested equity instruments.
In the period at which performance conditions and term of service are met, the relevant cost and expenses of equity-settled payment
should be recognized, and capital surplus is increased accordingly. Before the exercise date, the accruing amounts of equity-settled
payments on balance sheet date reflect the part of expired waiting period and optimal estimation for the number of the Company final
vested equity instruments.
If the non-market conditions and term of service are not met so that share-based payment fail to exercise, the costs and expenses on
this portion should not be recognized. If the share-based payment agreement sets out the market conditions and term of non-vesting,
as long as performance conditions and term of service are met, it is should be regard as exercisable right, no matter the market
conditions and non-vesting conditions are meet or not.
If the terms of equity-settled payment are modified, at least the service is confirmed in accordance with the unmodified terms. In
addition, the increase of the fair value of the authorized equity instruments, or the beneficial changes to the employees on the
modification date, the increase of service are confirmed. If the equity-settled payment is cancelled, the cancellation date shall be
deemed as an expedited exercise, and the unconfirmed amount shall be confirmed immediately. If the employee or other party is able
to choose to meet the non-vesting conditions but not satisfied in the waiting period, equity-settled payment should be cancelled. But
if a new equity instrument is granted, and the new equity instrument is confirm to replace the old equity instrument which is canceled
in the authorization date of the new equity instrument, the new equity instrument should be disposed by using the same conditions
and terms of the old equity instrument for modifications.
23. Revenue
The Group recognizes revenue at the consideration that the Group is entitled to charge as expected when the Group has fulfilled the
performance obligations in the contract, that is, the customer obtains control over relevant goods or services.
(a) Sales of goods
The Group mainly sells flat and engineering glass, products related to solar energy, and electronic glass and displays. For domestic
sales, the Group delivers the products to a certain place specified in the contract. When the buyer takes over the goods, the Group
recognizes revenue. For export sales, the Group recognizes the revenue when it finished clearing goods for export and delivering the
goods on board the vessel, or when the goods are delivered to a certain place specified in the contract. The credit period granted by
the Group to customers is determined based on the customer's credit risk characteristics, consistent with industry practices, and there
is no major financing component. The Group’s obligation to transfer goods to customers for consideration received or receivable
from customers is listed as contract liabilities.
Revenue is presented as the net amount after deducting sales discounts and sales returns.
(b) Rendering of services
The Group provides external consulting, loading, unloading, transportation and processing labor services, and recognizes revenue
within a period of time based on the progress of the completed labor. The progress of the completed labor is determined according to
the proportion of the cost incurred to the estimated total cost. On the balance sheet date, the Group re-estimates the progress of
completed labor services so that it can reflect changes in contract performance.
When the Group recognizes revenue based on the performance progress of the completed labor services, the portion for which the
Group has obtained the unconditional right to receive payments is recognized as accounts receivable, and the remaining portion is
recognized as contract assets, and the Company measures the loss reserve of accounts receivable and contract assets. According to
the expected credit loss; If the contract price received or receivable by the Group exceeds the completed progress, the excess is
recognized as contract liabilities. The Group presents the contract assets and contract liabilities under the same contract as a net
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2022
amount.
24 .Government grants
Government grants are transfers of monetary or non-monetary assets from the government to the Group at nil consideration,
including tax refund and financial subsidies, etc.
A government grant is recognized when there is a reasonable assurance that the grants will be received and the Group will comply
with all attached conditions. Monetary government grants are measured at the amounts received or receivable. Non-monetary
government grants are measured at fair value, if the fair value cannot be reliably obtained, it is measured at nominal amount.
The government grants related to assets refer to government grant obtained by enterprises and used for purchase and construction of
long-term assets or formation of long-term asset in other ways. The government grants related to income refer to grants other than
those related to assets.
For government grants related to income, where the grant is a compensation for related expenses or losses to be incurred by the
Group in the subsequent periods, the grant is recognized as deferred income, and included in profit or loss over the periods in which
the related costs are recognized; where the grant is a compensation for related expenses or losses already incurred by the Group, the
grant is recognized immediately in profit or loss for the current period.The company use the same method of presentation for similar
government grants.
The ordinary activity government grants should be counted into operating profits; the government grants which not belong to
ordinary activities should be counted into non-operating income.
25. Deferred tax assets / deferred tax liabilities
Deferred tax assets and deferred tax liabilities are calculated and recognized based on the differences arising between the tax bases of
assets and liabilities and their carrying amounts (temporary differences). Deferred tax asset is recognized for the deductible losses
that can be carried forward to subsequent years for deduction of the taxable profit in accordance with the tax laws. No deferred tax
liability is recognized for a temporary difference arising from the initial recognition of goodwill. No deferred tax asset or deferred tax
liability is recognized for the temporary differences resulting from the initial recognition of assets or liabilities due to a transaction
other than a business combination, which affects neither accounting profit nor taxable profit (or deductible loss). At the balance sheet
date, deferred tax assets and deferred tax liabilities are measured at the tax rates that are expected to apply to the period when the
asset is realized or the liability is settled.
Deferred tax assets are only recognized for deductible temporary differences, deductible losses and tax credits to the extent that it is
probable that taxable profit will be available in the future against which the deductible temporary differences, deductible losses and
tax credits can be utilized.
Deferred tax liabilities are recognized for temporary differences arising from investments in subsidiaries and associates, except where
the Group is able to control the timing of reversal of the temporary difference, and it is probable that the temporary difference will
not reverse in the foreseeable future. When it is probable that the temporary differences arising from investments in subsidiaries and
associates will be reversed in the foreseeable future and that the taxable profit will be available in the future against which the
temporary differences can be utilized, the corresponding deferred tax assets are recognized.
Deferred income tax assets and deferred income tax liabilities that meet the following conditions at the same time are listed as the net
amount after offset:
The deferred taxes are related to the same tax payer within the Group and the same taxation authority;
That tax payer within the Group has a legally enforceable right to offset current tax assets against current tax liabilities.
26 .Leases
A leasing is a contract in which the lessor cedes the right to use an asset to the lessee for a certain period of time in return for
consideration.
(a) The Group acts as the lessee
The Company recognizes the right-of-use assets on the commencement date of the lease term and recognizes the lease liabilities at
the present value of the outstanding lease payments. The lease payments include fixed payments, as well as payments where there is
26
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2022
reasonable certainty that a purchase option will be exercised or a lease option will be terminated. The variable rent determined based
on a certain percentage of sales is not included in the lease payment, and is included in the current profit and loss when it actually
occurs. The Group will list the non-liabilities within one year that lease liabilities will be paid one year. from the balance sheet date.
On the commencement date, the Company shall initially measure the right-of-use asset at cost. The cost of the right-of-use asset shall
comprise the amount of the initial measurement of the lease liability and any lease payments made at or before the commencement
date, and any initial direct costs incurred by the lessee etc, less any lease incentives received, If ownership of the leased asset
transfers to the Group at the end of the lease term, depreciation is calculated using the estimated useful life of the asset. Otherwise,
the right-of-use assets are depreciated over the shorter of the lease term and the estimated useful lives of the assets. Where the
carrying amount of an asset or a cash generating unit exceeds its recoverable amount, the asset or cash generating unit is considered
impaired and is written down to its recoverable amount.
A short-term lease is a lease that, at the commencement date, has a lease term of 12 months or less, and has a low-value asset leases.
The Group does not recognize the right-of-use assets and lease liabilities. The Group recognizes lease payments on short-term leases
and leases of low-value assets in the related asset costs or profit or loss on a straight-line basis over the lease term.
The Group accounts for a lease modification as a separate lease if both:(1) the modification increases the scope of the lease by adding
the right to use one or more underlying assets; (2) the consideration for the lease increases by an amount commensurate with the
stand-alone price for the increase in scope and any appropriate adjustments to that stand-alone price to reflect the circumstances of
the particular contract.
For a lease modification that is not accounted for as a separate lease, at the effective date of the lease modification the Group
remeasures the lease liability by discounting the revised lease payments using a revised discount rate. Decreasing the carrying
amount of the right-of-use asset to reflect the partial or full termination of the lease for lease modifications that decrease the scope of
the lease. The Group recognizes in profit or loss any gain or loss relating to the partial or full termination of the lease. Other lease
modifications will remeasure lease liabilities, and the group will make a corresponding adjustment to the right-of-use asset book
value.
(b) The Group acts as the lessor
A lease that transfers substantially all the risks and rewards associated with the ownership of the leased asset is a finance lease. Other
leases are operating leases.
(i) Operating lease
When the Company operates leased buildings, machinery and equipment, and means of transport, the rental income from operating
leases shall be recognized in accordance with the straight-line method during the lease term. The Company will include variable rent
determined based on a percentage of sales in rental income when it actually incurs. For any modification to an operating lease, the
Group treats it as a new lease from the effective date of the modification, and the received or receivable lease payments related to the
lease prior to the modification are treated as lease payments of the new lease.
(ii) Finance lease
On the beginning date of the lease term, the Company recognizes the finance lease receivables for finance leases and derecognizes
related assets. The Company presents the finance lease receivables as long-term receivables, and the finance lease receivables
received within one year (including one year) from the balance sheet date are presented as non-current assets due within one year.
27. Other important accounting policies and accounting estimates
The Group continually Estimates the critical accounting estimates and key assumptions applied based on historical experience and
other factors, including expectations of future events that are believed to be reasonable.
The critical accounting estimates and key assumptions that have a significant risk of possibly causing a material adjustment to book
values of assets and liabilities within the next accounting year are outlined below:
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2022
(a) Income tax
The Group is subject to Income tax in numerous jurisdictions. There are some transactions and events for which the ultimate tax
determination is uncertain during the ordinary course of business. Significant judgement is required from the Group in determining
the provision for Income tax in each of these jurisdictions. Where the final identified outcome of these tax matters is different from
the initially-recorded amount, such difference will impact the income tax expenses and deferred income tax in the period in which
such determination is finally made.
(b) Deferred income tax
Estimates on deferred tax assets are based on estimates on amount of taxable income and applicable tax rate for every year.
Realisation of deferred income tax is subject to sufficient taxable income that is possible to be obtained by the Group in the future.
Change of the future tax rate as well as the reversed time of temporary difference might have effects on tax expense (income) and the
balance of deferred tax assets or liabilities. Those estimates may also cause significant adjustment on deferred tax.
(c) Impairment of long-term assets (excluding goodwill)
Long-term assets at the balance sheet date should be subject to impairment testing if there are any indications of impairment.
Management determines whether the long-term assets impaired or not by evaluating and analysing following aspects: (1) whether the
event affecting assets impairment occurs; (2) whether the expected obtainable present value of future cash flows is lower than the
asset’s carrying amount by continually using the assets or disposal; and (3) whether the assumptions used in expected obtainable
present value of future cash flows are appropriate.
Various assumptions, including the discount rate and growth rate applied in the method of present value of future cash flow, are
required in evaluating the recoverable amount of assets. If these assumptions cannot be conformed, the recoverable amount should be
modified, and the long-term assets may be impaired accordingly.
(d) The useful life of fixed assets
Management estimates the useful life of fixed assets, based on historical experiences on using fixed assets that have similar
properties and functions. When there are differences between actually useful life and previously estimation, management will adjust
estimation to useful life of fixed assets. The fixed assets would be written off or written down when fixed assets been disposed or
became redundant. Thus, the estimated result based on existing experience may be different from the actual result of the next
accounting period, which may cause major adjustment to book value of fixed assets on balance sheet.
(e) Goodwill impairment
Goodwill impairment reviews are undertaken annually or more frequently if events or changes in circumstances indicate a potential
impairment. For the purpose of impairment testing, goodwill acquired in a business combination is allocated to each of the
cash-generating units (“CGUs”), or groups of CGUs, and future cash flow from each CGU or CGUs is forcasted and discounted with
appropriate discount rate.
28. Significant accounting policies and changes in accounting estimates
（1）Important accounting policy changes
√ Applicable □Not applicable
Contents and reasons for changes in accounting
Approval procedure Remark
policy
On December 31, 2021, the Ministry of Finance
promulgated the "Notice on Printing and Issuing"
The ninth meeting of the ninth
(Cai Kuai [2021] No. 35) (hereinafter referred to
board of directors and the ninth
as "Standard Interpretation No. 15"), regarding
meeting of the ninth board of
the company's fixed assets before they reach the
supervisors held on April 28, 2022 The adoption of Interpretation No. 15
intended use state or The accounting treatment of
reviewed and approved the did not have a significant impact on
external sales of products or by-products
company's disclosure of accounting the financial position and operating
produced in the R&D process and the judgment
statements in accordance with the results of the Company.
on loss-making contracts have been clarified.
requirements of Standard
Standard Interpretation No. 15 "Accounting
Interpretation No. 15 from January
treatment of external sales of products or
1, 2022.
by-products produced by enterprises before their
fixed assets reach their intended usable state or in
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2022
the process of research and development" and
"Judgment on onerous contracts" from January 1,
2022 to be implemented.
（2）Important accounting estimate changes
□ Applicable √Not applicable
29. Others
（1）Safety production costs
According to relevant regulations of the Ministry of Finance and National Administration of Work Safety, a subsidiary of the Group
which is engaged in producing and selling polysilicon appropriates safety production costs on following basis:
(a) 4% for revenue below RMB10 million (inclusive) of the year;
(b) 2% for the revenue between RMB10 million to RMB100 million (inclusive) of the year;
(c) 0.5% for the revenue between RMB100 million to RMB1 billion (inclusive) of the year;
(d) 0.2% for the revenue above RMB1 billion of the year.
The safety production costs are mainly used for the overhaul, renewal and maintenance of safety facilities. The safety production
costs are charged to costs of related products or profit or loss when appropriated, and safety production costs in equity account are
credited correspondingly. When using the special reserve, if the expenditures are expenses in nature, the expenses incurred are offset
against the special reserve directly when incurred. If the expenditures are capital expenditures, when projects are completed and
transferred to fixed assets, the special reserve should be offset against the cost of fixed assets, and a corresponding accumulated
depreciation are recognized. The fixed assets are no longer be depreciated in future.
（2）Segment information
The Group identifies operating segments based on the internal organisation structure, management requirements and internal
reporting system, and discloses segment information of reportable segments which is determined on the basis of operating segments.
An operating segment is a component of the Group that satisfies all of the following conditions: (a) the component is able to earn
revenue and incur expenses from its ordinary activities; (b) whose operating results are regularly reviewed by the Group’s
management to make decisions about resources to be allocated to the segment and to assess its performance, and (c) for which the
information on financial position, operating results and cash flows is available to the Group. If two or more operating segments have
similar economic characteristics and satisfy certain conditions, they are aggregated into one single operating segment.
VI.Taxation
1. The main categories and rates of taxes
Category Taxable basis Tax rate
Enterprise income tax Taxable income 0%-25%
Taxable value-added amount (Tax
payable is calculated using the taxable
Value-added tax (“VAT”) sales amount multiplied by the applicable 1%-13%
tax rate less deductible VAT input of the
current period)
City maintenance and construction tax VAT paid 1%-7%
Educational surcharge VAT paid 5%
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2022
2. Tax incentives
Tianjin CSG Energy-Saving Glass Co., Ltd. (“Tianjin Energy Conservation”) passed review on a high and new tech enterprise in
2021 and obtained the Certificate of High and New Tech Enterprise, the period of validity is three years. It applies to 15% tax rate for
three years since 2021.
Dongguan CSG Architectural Glass Co., Ltd. (“Dongguan CSG”) passed review on a high and new tech enterprise in 2019 and
obtained the Certificate of High and New Tech Enterprise, the period of validity is three years. It applies to 15% tax rate for three
years since 2019. In the 2022 high-tech enterprise qualification review, the income tax rate of 15% will be temporarily applied during
the reporting period.
Wujiang CSG East China Architectural Glass Co., Ltd. (“Wujiang CSG Engineering”) passed review on a high and new tech
enterprise in 2020 and obtained the Certificate of High and New Tech Enterprise, the period of validity is three years. It applies to
15% tax rate for three years since 2020.
Dongguan CSG Solar Glass Co., Ltd. (“Dongguan CSG Solar”) passed review on a high and new tech enterprise in 2020 and
obtained the Certificate of High and New Tech Enterprise, the period of validity is three years. It applies to 15% tax rate for three
years since 2020.
Yichang CSG Polysilicon Co., Ltd. (“Yichang CSG Polysilicon”) passed review on a high and new tech enterprise in 2020 and
obtained the Certificate of High and New Tech Enterprise, the period of validity is three years. It applies to 15% tax rate for three
years since 2020.
Dongguan CSG PV-tech Co., Ltd. (“Dongguan CSG PV-tech”) passed review on a high and new tech enterprise in 2019 and
obtained the Certificate of High and New Tech Enterprise, the period of validity is three years. It applies to 15% tax rate for three
years since 2019.In the 2022 high-tech enterprise qualification review, the income tax rate of 15% will be temporarily applied during
the reporting period.
Hebei Shichuang Glass Co., Ltd. (“Hebei Shichuang”) passed review on a high and new tech enterprise in 2019 and obtained the
Certificate of High and New Tech Enterprise, the period of validity is three years. It applies to 15% tax rate for three years since
2019.In the 2022 high-tech enterprise qualification review, the income tax rate of 15% will be temporarily applied during the
reporting period.
Wujiang CSG Glass Co., Ltd. (“Wujiang CSG”) passed review on a high and new tech enterprise in 2020, and obtained the
Certificate of High and New Tech Enterprise, and the period of validity was three years. It applies to 15% tax rate for three years
since 2020.
Xianning CSG Glass Co Ltd. (“Xianning CSG”) passed review on a high and new tech enterprise in 2020, and obtained the
Certificate of High and New Tech Enterprise, and the period of validity was three years. It applies to 15% tax rate for three years
since 2020.
Xianning CSG Energy-Saving Glass Co., Ltd. (“Xianning CSG Energy-Saving”) passed review on a high and new tech enterprise in
2021, and obtained the Certificate of High and New Tech Enterprise, and the period of validity was three years. It applies to 15% tax
rate for three years since 2021.
Yichang CSG Photoelectric Glass Co., Ltd. (“Yichang CSG Photoelectric”) passed review on a high and new tech enterprise in 2021,
and obtained the Certificate of High and New Tech Enterprise, and the period of validity was three years. It applies to 15% tax rate
for three years since 2021.
Yichang CSG Display Co., Ltd (“Yichang CSG Display”) passed review on a high and new tech enterprisein 2021, and obtained
the Certificate of High and New Tech Enterprise, and the period of validity was three years. It applies to 15% tax rate for three years
since 2021.
Qingyuan CSG New Energy-Saving Materials Co., Ltd. (“Qingyuan CSG Energy-Saving”) passed review on a high and new tech
enterprise in 2019, and obtained the Certificate of High and New Tech Enterprise, and the period of validity was three years. It
applies to 15% tax rate for three years since 2019.In the 2022 high-tech enterprise qualification review, the income tax rate of 15%
will be temporarily applied during the reporting period.
Hebei CSG Glass Co Ltd. (“Hebei CSG”) passed review on a high and new tech enterprise in 2021, and obtained the Certificate of
High and New Tech Enterprise, and the period of validity was three years. It applies to 15% tax rate for three years since 2021.
Shenzhen CSG Applied Technology Co Ltd. (“Shenzhen Technology”) passed review on a high and new tech enterprise in 2021,
and obtained the Certificate of High and New Tech Enterprise, and the period of validity was three years. It applies to 15% tax rate
for three years since 2021.
Xianning CSG Photoelectric Glass Co., Ltd. (“Xianning Photoelectric”) passed review on a high and new tech enterprise in 2019 and
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2022
obtained the Certificate of High and New Tech Enterprise, the period of validity is three years. It applies to 15% tax rate for three
years since 2019.In the 2022 high-tech enterprise qualification review, the income tax rate of 15% will be temporarily applied during
the reporting period.
Dongguan CSG Crystal Yuxin Materials Co., Ltd. (“Dongguan Jing Yu Company”) passed review on a
high and new tech enterprise in 2021 and obtained the Certificate of High and New Tech Enterprise, the period of validity is three
years. It applies to 15% tax rate for three years since 2021.
Sichuan CSG Energy Conservation Glass Co., Ltd. (“Sichuan CSG Energy Conservation”) obtains enterprise income tax preferential
treatment for Western Development, and temporarily calculates enterprise income tax at a tax rate of 15% for current year.
Chengdu CSG Glass Co., Ltd. (“Chengdu CSG”) obtains enterprise income tax preferential treatment for Western Development, and
temporarily calculates enterprise income tax at a tax rate of 15% for current year.
Xian CSG Energy Conservation Glass Co., Ltd. (“Xian CSG Energy Conservation”) obtains enterprise income tax preferential
treatment for Western Development, and temporarily calculates enterprise income tax at a tax rate of 15% for current year.
Guangxi CSG New Energy Materials Technology Co., Ltd. ( “Guangxi CSG New Energy Materials Company”) obtains enterprise
income tax preferential treatment for Western Development, and temporarily calculates enterprise income tax at a tax rate of 15% for
current year.
Zhaoqing CSG New Energy Technology Co., Ltd. ( “Zhaoqing CSG New Energy Company”),Zhangzhou CSG Kibing PV Energy
Co., Ltd. (“Zhangzhou CSG PV Energy”), Heyuan CSG Kibing PV Energy Co., Ltd. (“Heyuan CSG”), and Shaoxing CSG Kibing
New Energy Co., Ltd. (“Shaoxing CSG New Energy”), Xianning CSG PV Energy Co., Ltd. (“Xianning PV Energy”), Zhanjiang
CSG New Energy Co., Ltd. (“Zhanjiang PV Energy”), are public infrastructure project specially supported by the state in accordance
with the Article 87 in Implementing Regulations of the Law of the People's Republic of China on Enterprise Income Tax, and can
enjoy the tax preferential policy of “three-year exemptions and three-year halves”, that is, starting from the tax year when the first
revenue from production and operation occurs, the enterprise income tax is exempted from the first to the third year, while half of the
enterprise income tax is collected for the following three years.
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2022
3. Others
Some subsidiaries of the Group have used the “exempt, credit, refund” method on goods exported and the refund rate is0%-13%。
VII. Notes to the consolidated financial statements
1. Cash at bank and on hand
Unit: RMB
Item Balance at the end of the period Balance at the beginning of the period
Cash on hand 130
Cash at bank 2,523,965,640 2,453,477,573
Other cash balances 346,076,771 312,448,333
Total 2,870,042,541 2,765,925,906
Including: Total overseas deposits 19,686,544 8,906,359
The total amount of funds that have restrictions
6,076,772 9,448,334
on use due to mortgages, pledges, or freezes
2 .Trading financial assets
Unit: RMB
Item Balance at the end of the period Balance at the beginning of the period
Financial assets measured at fair value
1,209,000,000 999,600,000
through profit or loss
Of which:
Structured deposits 1,209,000,000 999,600,000
Total 1,209,000,000 999,600,000
3. Notes receivable
（1）Notes receivable listed by classification
Unit: RMB
Item Balance at the end of the period Balance at the beginning of the period
Trade acceptance notes 445,375 19,220,984
Total 445,375 19,220,984
Unit: RMB
Balance at the end of the period Balance at the beginning of the period
Provision for bad Provision for bad
Carrying amount Carrying amount
debts debts
Category Book
Prop Prop Book value
Propo value Propor
Amount Amount ortio Amount Amount ortio
rtion tion
n n
32
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2022
Notes
receivable
with
provision
2,226,877 100% 1,781,502 80% 445,375 28,438,249 71% 20,778,806 73% 7,659,443
for bad
debts on a
single
item basis
Notes
receivable
with bad
debt 11,561,541 29% 11,561,541
provision
based on
portfolio
Total 2,226,877 100% 1,781,502 80% 445,375 39,999,790 100% 20,778,806 52% 19,220,984
Provision for bad debts on the individual basis:
Unit: RMB
Closing balance
Name Provision
Carrying
for bad Proportion Reasons for withdrawal
amount
debts
It mainly represented trade acceptance notes
Notes receivable with due from evergrande of the part of subsidiary,
provision for bad debts on a 2,226,877 1,781,502 80% due to difficult to pay or deterioration of cash
single item basis operations, the provision for bad debts was
fully or partially accrued.
Total 2,226,877 1,781,502
（2）Provision for bad debts accrued, recovered or reversed in the current period
Provision for bad debts in the current period:
Unit: RMB
Amount of change in the current period
Opening Transfer to
Category Collect or Closing balance
balance Provision Write-off Accounts
reversal
Receivable
Individual provision
20,778,806 18,997,304 1,781,502
for bad debts
Total 20,778,806 18,997,304 1,781,502
（3）At the end of the period, the company transferred the bills to accounts receivable due to the failure of the drawer to
perform
Unit: RMB
Item Amount of receivables transferred at the end of the period
Trade acceptance notes 27,584,466
Total 27,584,466
33
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2022
4.Accounts receivable
（1）Accounts receivable disclosed by category
Unit: RMB
End of term Beginning of term
Provision for bad Provision for bad
Carrying amount Carrying amount
debts debts
Category
Book value Prop Prop Book value
Propor Propo
Amount Amount Amount ortio Amount ortio
tion rtion
n n
Provision
for bad
debts on
182,594,849 19% 120,581,801 66% 62,013,048 159,936,493 19% 103,566,693 65% 56,369,800
the
individual
basis
Provision
for bad
796,194,994 81% 15,924,375 2% 780,270,619 687,914,171 81% 13,758,284 2% 674,155,887
debts by
portfolio
Total 978,789,843 100% 136,506,176 14% 842,283,667 847,850,664 100% 117,324,977 14% 730,525,687
Provision for bad debts on the individual basis:
Unit: RMB
Closing balance
Name Carrying Provision for
Proportion Reasons for withdrawal
amount bad debts
It mainly represented the goods receivable due from a
Provision for bad
client of the part of subsidiary, due to business
debts on the 182,594,849 120,581,801 66%
dispute or deterioration of customer operations, the
individual basis
provision for bad debts was fully or partially accrued.
Total 182,594,849 120,581,801
Provision for bad debts by portfolio:
Unit: RMB
Closing balance
Name
Carrying amount Provision for bad debts Proportion
Portfolio 1 796,194,994 15,924,375 2%
Total 796,194,994 15,924,375
Disclosure by the aging of accounts receivable
Unit: RMB
Aging Closing balance
Within 1 year (including 1 year) 708,817,267
1 to 2 years 170,870,147
34
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2022
2 to 3 years 48,962,202
Over 3 years 50,140,227
Total 978,789,843
（2）Provision for bad debts accrued, recovered or reversed in the current period
Provision for bad debts in the current period:
Unit: RMB
Amount of change in the current period
Opening Closing
Category Bills receivable Collect or
balance Provision Write-off balance
transferred in reversal
Accounts receivable
117,324,977 6,976,393 18,997,304 5,880,424 912,074 136,506,176
bad debt provision
Total 117,324,977 6,976,393 18,997,304 5,880,424 912,074 136,506,176
（3）Accounts receivable actually written off in the current period
Unit: RMB
Item Amount written off
Accounts receivable from subsidiaries 912,074
（4）Top 5 of the closing balance of the accounts receivable collected according to the arrears party
Unit: RMB
Proportion in the total balance
Closing balance of accounts Ending balance of bad debt
Name of accounts receivable at the
receivable reserves
end of the period
Total balances for the five
328,308,132 34% 49,011,582
largest accounts receivable
Total 328,308,132 34%
5.Receivables financing
Unit: RMB
Item Closing balance Opening balance
Bank acceptance notes 582,328,808 297,046,123
Total 582,328,808 297,046,123
6. Advances to suppliers
（1）Listed by aging analysis
Unit: RMB
Closing balance Opening balance
Aging
Amount Proportion Amount
35
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2022
within1year 234,152,262 100% 74,971,763 98%
1 to 2years 618,299 486,849 1%
2 to 3years 35,000 520,498 1%
over 3 years 520,498 118,166
Total 235,326,059 76,097,276
（2）Top 5 of the closing balance of the advances to suppliers collected according to the target
Unit: RMB
Percentage in total advances to suppliers
Item Balance
balance
Total balances for the five largest advances to
135,780,759 58%
suppliers
7. Other receivables
Unit: RMB
Item Closing balance Opening balance
Other receivables 201,090,652 183,696,711
Total 201,090,652 183,696,711
（1）Other receivables
1）Classification of other receivables by nature
Unit: RMB
Nature Closing book balance Opening book balance
Receivables from special fund for talent 171,000,000 171,000,000
Payments made on behalf of other parties 48,887,030 47,686,819
Advance payment (i) 10,366,164 10,366,164
Refundable deposits 19,669,918 9,191,412
Petty cash 1,572,171 497,273
Others 13,123,214 8,110,638
Total 264,618,497 246,852,306
(i) It is the prepayment for materials of the subsidiary Yingde CBM Mining Co., Ltd. The prepayments accounts were transferred to
other receivables and the provision of the bad debts was provided individually.
2）Withdrawal of bad debt provision
Unit: RMB
Phase I Phase II Phase III
Expected credit loss Expected credit loss
Bad debt provision Expected credit Total
for the entire duration for the entire duration
losses in the next 12
(no credit impairment (credit impairment
months
occurred) occurred)
Balance on1 January 2022 1,166,526 61,989,069 63,155,595
Balance on1 January 2022in
current period
36
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2022
Withdrawal 412,069 412,069
Recovery 15,816 15,816
Write-off 24,003 24,003
Balance on 30 June 2022 1,538,776 61,989,069 63,527,845
3）Disclosure by the aging of other receivables
Unit: RMB
Aging Closing balance
Within 1 year (including 1 year) 55,141,858
1 to 2 years 8,856,860
2 to 3 years 910,743
Over 3 years 199,709,036
3 to 4 years 2,619,497
4 to 5 years 2,042,730
Over 5 years 195,046,809
Total 264,618,497
4）Provision for bad debts withdrawn, recovered or reversed during the report period
Provision for bad debts:
Unit: RMB
Amount of change in the current period
Opening
Category Collect or Closing balance
balance Provision Write-off Others
reversal
Provision for
bad debts of
63,155,595 412,069 15,816 24,003 63,527,845
other
receivables
Total 63,155,595 412,069 15,816 24,003 63,527,845
5）Other receivables actually written off in the current period
Unit: RMB
Item Write-off amount
Other receivables 24,003
6）Top 5 of the closing balance of the other accounts receivable collated according to the arrears party
Unit: RMB
Proportion in the
total balance of
Closing balance of
Name of Company Nature of business Closing balance Aging other receivables
bad debt provision
at the end of the
period
Independent third
171,000,000 Over 5 years 65% 51,300,000
Company A party
Governmental Independent third 24,000,000 Within 1 year 9% 480,000
37
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2022
department B party
Governmental Independent third 11,556,004 Over 5 years 4% 231,120
department C party
Independent third
Company D 10,366,164 Over 5 years 4% 10,366,164
party
Governmental Independent third 10,000,000 Within 1 year 4% 200,000
department E party
Total 226,922,168 86% 62,577,284
8. Inventories
（1） Inventory classification
Unit: RMB
Closing balance Opening balance
Item Reserve for Reserve for
Carrying Carrying
depreciation of Book value depreciation of Book value
amount amount
inventory inventory
Raw materials 697,911,751 976,330 696,935,421 389,937,319 1,002,085 388,935,234
Products in
32,012,843 32,012,843 22,801,437 22,801,437
process
Products in
984,442,555 1,851,314 982,591,241 632,814,981 5,829,059 626,985,922
stock
Material in
55,533,224 160,330 55,372,894 55,480,764 397,832 55,082,932
circulation
Total 1,769,900,373 2,987,974 1,766,912,399 1,101,034,501 7,228,976 1,093,805,525
（2）Provision for decline in the value of inventories
单位：元
Increased in this term Decreased in this term
Opening
Item Reversal or Closing balance
balance Provision Others Others
write off
Raw materials 1,002,085 25,755 976,330
Products in
5,829,059 3,977,745 1,851,314
stock
Material in
397,832 237,502 160,330
circulation
Total 7,228,976 4,241,002 2,987,974
9.Other current assets
Unit: RMB
Item Closing balance Opening balance
VAT to be offset 50,432,826 128,033,622
Enterprise income tax prepaid 8,211,086 3,771,709
VAT input to be recognized 9,956,323 8,888,295
Others 16,435 11,672
Total 68,616,670 140,705,298
38
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2022
10. Investment property
（1）Investment real estate using cost measurement model
□Applicable √Not applicable
（2）Investment property with fair value measurement mode
√Applicable □ Not applicable
Unit: RMB
Houses, buildings and related land use
Item Total
rights
I. Opening balance 383,084,500 383,084,500
II. Changes in the current period
III. Closing balance 383,084,500 383,084,500
11. Fixed assets
Unit: RMB
Item Closing balance Opening balance
Fixed assets 9,336,413,529 8,566,515,026
Total 9,336,413,529 8,566,515,026
（1）Particulars of fixed assets
Unit: RMB
Machinery and
Item Buildings Motor vehicles Total
equipment
I. Original book value:
1. Opening balance 4,175,491,233 12,040,306,471 257,186,014 16,472,983,718
2. Increased amount of
the period
(1) Acquisition 2,061,137 21,622,510 8,356,693 32,040,340
(2) Transfers from
construction in 388,181,424 1,841,384,996 6,455,298 2,236,021,718
progress
(3)Increase in business
mergers
(4) Others 3,107,362 2,009,907 5,117,269
3. Decreased amount of
the period
(1) Disposal or
243,357 31,222,551 7,380,031 38,845,939
retirement
(2) Transfer to
construction in 183,920,987 324,752,456 401,729 509,075,172
progress
(3) Others 1,721,971 822,894 180,124 2,724,989
4. Closing balance 4,379,847,479 13,549,623,438 266,046,028 18,195,516,945
II. Accumulative
39
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2022
Machinery and
Item Buildings Motor vehicles Total
equipment
depreciation
1. Opening balance 1,129,349,070 5,532,791,435 230,711,343 6,892,851,848
2. Increased amount of
the period
(1) Provision 63,927,057 358,444,891 13,123,636 435,495,584
(2) Others 908,372 287,308 1,195,680
3. Decreased amount of
the period
(1) Disposal or
34,034 5,782,357 7,232,019 13,048,410
retirement
(2) Transfer to
construction in 47,589,170 240,194,191 299,369 288,082,730
progress
(3) Others 372,612 155,946 6,861 535,419
4. Closing balance 1,145,280,311 5,646,012,204 236,584,038 7,027,876,553
III. Impairment
provision
1. Opening balance 59,901,148 953,451,046 264,650 1,013,616,844
2. Increased amount of
the period
(1) Construction in
111,232,516 730,885,926 528,767 842,647,209
progress transferred in
3. Decreased amount of
the period
(1) Disposal or scrap 25,037,190 25,037,190
4. Closing balance 171,133,664 1,659,299,782 793,417 1,831,226,863
IV. Book value
1. Closing book value 3,063,433,504 6,244,311,452 28,668,573 9,336,413,529
2. Opening book value 2,986,241,015 5,554,063,990 26,210,021 8,566,515,026
（2）Fixed assets with pending certificates of ownership
Unit: RMB
Reasons for not yet obtaining certificates
Item Carrying amount
of title
Have submitted the required documents
and are in the process of application, or
Buildings 783,783,208
the related land use right certificate
pending
12. Construction in process
Unit: RMB
Item Closing balance Opening balance
Construction in process 2,809,337,684 2,461,088,650
Total 2,809,337,684 2,461,088,650
40
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2022
(1) Particulars of construction in process
Unit: RMB
Closing balance Opening balance
Item Provision for
Provision for
Book balance impairment Book value Book balance Book value
impairment loss
loss
Yichang CSG
polysilicon
1,535,368,156 857,890,185 677,477,971
tech-innovation
project
Anhui
Lightweight &
high-permeability
panel for solar
1,541,203,471 1,541,203,471 765,170,527 765,170,527
energy
equipment
manufacturing
base project
Qingyuan New
Materials Phase I
technical 221,679,025 94,897,537 126,781,488 297,932,280 174,675,600 123,256,680
transformation
project
Zhaoqing CSG
high-grade
energy saving 55,183,034 55,183,034 279,138,811 279,138,811
glass production
line project
Dongguan PV B
Building 450MW
PERC battery 186,866,743 184,998,076 1,868,667 186,866,743 184,998,076 1,868,667
technology
upgrade project
Tianjin
Energy-saving
Coating
95,225,037 95,225,037
Production Line
Purchase and
Upgrade Project
Xianning CSG
1200T/D
Photovoltaic
Packaging 287,738,732 287,738,732 66,449,089 66,449,089
Material
Production Line
Project
Anhui Fengyang
quartz sand 253,100 253,100 56,656,483 56,656,483
project
Wujiang
70,192,064 70,192,064 51,766,295 51,766,295
Architectural
41
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2022
Closing balance Opening balance
Item Provision for
Provision for
Book balance impairment Book value Book balance Book value
impairment loss
loss
Glass newly
building
intelligent
manufacturing
plant
construction
project
Wujiang Float
Lightweight and
High-efficiency
double-glass
106,468,188 106,468,188 39,032,912 39,032,912
processing
production line
construction
project
LED Sapphire
32,420,412 32,420,412 32,420,412 32,420,412
Substrate Project
Zhaoqing CSG
high-grade
automobile glass 54,688,369 54,688,369 27,941,928 27,941,928
production line
project
Hebei Panel
Glass ultra-thin
electronic glass
75,707,997 75,707,997 24,393,421 24,393,421
Line II
construction
project
Dongguan solar
double-glass
extension
274,502,743 274,502,743 2,389,871 2,389,871
technology
transformation
upgrade project
Dongguan solar
light and
high-efficiency
double-glass
2,000,908 2,000,908 551,795 551,795
processing
production line
construction
project
Guangxi Beihai
Photovoltaic
Green Energy 3,080,041 3,080,041 382,997 382,997
Industry Park
(Phase I) Project
Hefei CSG 820,064 820,064
42
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2022
Closing balance Opening balance
Item Provision for
Provision for
Book balance impairment Book value Book balance Book value
impairment loss
loss
Energy-saving
Glass Intelligent
Manufacturing
Industry Base
Project
Dongguan Solar
G6/G7 Line
Process and
20,679,019 20,679,019
Equipment
Upgrading
Project
Others 212,266,126 24,096,327 188,169,799 275,679,766 26,293,600 249,386,166
Total 3,145,750,036 336,412,352 2,809,337,684 3,737,366,523 1,276,277,873 2,461,088,650
43
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2022
(2) Changes in important construction projects in the current period
Unit: RMB
Including: Interest
Proportion Accumulate
amount capitaliz
Transfer to between d amount of
Opening Increased this Closing interest ation Fund
Project Budget fixed assets in engineering Progress Projects interest
balance term balance capitalizatio rate in recourse
this term input and capitalizatio
n in current current
budget n
period period
Yichang CSG
Internal
polysilicon
49,520,000 1,535,368,156 1,511,107,324 24,260,832 100% 100% fund and
tech-innovation bank loan
project
Anhui Lightweight
&
high-permeability Internal
panel for solar 3,739,020,000 765,170,527 776,565,916 532,972 1,541,203,471 41% 85% 17,468,116 15,022,618 4.20% fund and
energy equipment bank loan
manufacturing
base project
Qingyuan New
Materials Phase I Internal
technical 534,870,000 297,932,280 4,614,306 363,834 80,503,727 221,679,025 4% 4% fund and
transformation bank loan
project
Zhaoqing CSG
high-grade energy Internal
saving glass 500,000,000 279,138,811 27,140,143 251,085,070 10,850 55,183,034 74% 89% 5,405,566 1,250,641 3.80% fund and
production line bank loan
project
Dongguan PV B
Building 450MW Internal
PERC battery 100,990,000 186,866,743 186,866,743 1% 3% fund and
technology bank loan
upgrade project
44
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2022
Including: Interest
Proportion Accumulate
amount capitaliz
Transfer to between d amount of
Opening Increased this Closing interest ation Fund
Project Budget fixed assets in engineering Progress Projects interest
balance term balance capitalizatio rate in recourse
this term input and capitalizatio
n in current current
budget n
period period
Tianjin
Energy-saving
Internal
Coating
114,945,000 95,225,037 5,636,400 100,861,437 100% 100% 2,644,397 1,134,116 4% fund and
Production Line bank loan
Purchase and
Upgrade Project
Xianning CSG
1200T/D
Photovoltaic Internal
Packaging 858,090,000 66,449,089 221,289,643 287,738,732 33% 65% 10,778,660 5,655,493 4.52% fund and
Material bank loan
Production Line
Project
Internal
Anhui Fengyang
1,029,300,000 56,656,483 83,192,287 139,595,670 253,100 14% 56% 1,144,948 1,026,584 4.55% fund and
quartz sand project bank loan
Wujiang
Architectural
Glass newly Internal
building intelligent 179,140,610 51,766,295 18,921,344 495,575 70,192,064 40% 45% 819,017 497,923 3.85% fund and
manufacturing bank loan
plant construction
project
Wujiang Float
Lightweight and
High-efficiency
Internal
double-glass
158,850,000 39,032,912 69,360,586 1,925,310 106,468,188 67% 80% 1,212,348 824,392 4% fund and
processing bank loan
production line
construction
project
LED Sapphire 35,000,000 32,420,412 32,420,412 93% 93% 4,650,543 Internal
45
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2022
Including: Interest
Proportion Accumulate
amount capitaliz
Transfer to between d amount of
Opening Increased this Closing interest ation Fund
Project Budget fixed assets in engineering Progress Projects interest
balance term balance capitalizatio rate in recourse
this term input and capitalizatio
n in current current
budget n
period period
Substrate Project fund and
bank loan
Zhaoqing CSG
high-grade Internal
automobile glass 609,830,000 27,941,928 26,746,441 54,688,369 9% 13% fund and
production line bank loan
project
Hebei Panel Glass
ultra-thin
Internal
electronic glass
284,964,800 24,393,421 51,867,735 553,159 75,707,997 30% 50% 645,947 645,568 4.35% fund and
Line II bank loan
construction
project
Dongguan solar
double-glass
Internal
extension
143,490,000 2,389,871 272,112,872 274,502,743 57% 60% 461,552 461,552 3.56% fund and
technology bank loan
transformation
upgrade project
Dongguan solar
light and
high-efficiency
Internal
double-glass
76,140,000 551,795 1,449,113 2,000,908 77% 100% fund and
processing bank loan
production line
construction
project
46
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2022
Including: Interest
Proportion Accumulate
amount capitaliz
Transfer to between d amount of
Opening Increased this Closing interest ation Fund
Project Budget fixed assets in engineering Progress Projects interest
balance term balance capitalizatio rate in recourse
this term input and capitalizatio
n in current current
budget n
period period
Guangxi Beihai
Photovoltaic Internal
Green Energy 4,942,051,800 382,997 2,822,610 125,566 3,080,041 2% fund and
Industry Park bank loan
(Phase I) Project
Hefei CSG
Energy-saving
Internal
Glass Intelligent
210,190,000 820,064 820,064 fund and
Manufacturing bank loan
Industry Base
Project
Dongguan Solar
G6/G7 Line Internal
Process and 59,260,000 20,679,019 20,679,019 6% fund and
Equipment bank loan
Upgrading Project
Internal
Others 1,320,351,179 275,679,766 173,035,132 229,501,367 6,947,405 212,266,126 297,042 221,232 fund and
bank loan
Total 14,946,003,389 3,737,366,523 1,756,253,611 2,236,021,718 111,848,380 3,145,750,036 45,528,136 26,740,119
47
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2022
13. Right of use assets
Unit: RMB
Item Lease Land Rental housing Total
I. Original book value:
1. Opening balance 9,770,358 1,897,983 11,668,341
2. Increased amount of the
period
3. Decreased amount of the
period
(1) Others 473,610 473,610
4. Closing balance 9,296,748 1,897,983 11,194,731
II. Accumulative depreciation
1. Opening balance 942,985 813,421 1,756,406
2. Increased amount of the
period
(1) Provision 470,592 406,711 877,303
3. Decreased amount of the
period
(1) Others 473,610 473,610
4. Closing balance 939,967 1,220,132 2,160,099
III. Impairment provision
IV. Book value
1. Closing book value 8,356,781 677,851 9,034,632
2. Opening book value 8,827,373 1,084,562 9,911,935
14. Intangible assets
(1) Particulars of intangible assets
Unit: RMB
Patents and Exploitation
Item Land use rights Others Total
know-how rights
I. Original book
value:
1. Opening balance 1,169,898,169 428,988,220 5,651,751 46,713,240 1,651,251,380
2. Increased amount
of this period
(1) Acquisition 62,606,655 2,708,775 65,315,430
48
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2022
Patents and Exploitation
Item Land use rights Others Total
know-how rights
(2) Internal R&D 8,010,026 8,010,026
(3) Others 165,706 165,706
3. Decreased amount
of the period
(1) Others 259,999 259,999
4. Closing balance 1,232,504,824 436,998,246 5,651,751 49,327,722 1,724,482,543
II.Accumulated
amortization
1. Opening balance 230,710,042 194,971,917 4,591,610 40,155,929 470,429,498
2. Increased amount
of this period
(1) Provision 12,270,060 16,414,041 91,729 2,632,668 31,408,498
3. Decreased amount
of the period
(1) Others 91,001 91,001
4. Closing balance 242,980,102 211,385,958 4,683,339 42,697,596 501,746,995
III. Impairment
provision
1. Opening balance 13,201,347 9,133 13,210,480
2. Closing balance 13,201,347 9,133 13,210,480
IV. Book value
1. Closing book value 989,524,722 212,410,941 968,412 6,620,993 1,209,525,068
2. Opening book
939,188,127 220,814,956 1,060,141 6,548,178 1,167,611,402
value
At the end of the period, the intangible assets arising from internal research and development accounted for 20.07% of total of
intangible assets.
(2) Land use rights without property right certificates
Unit: RMB
Reason for not yet obtaining certificates
Item Book value
of title
Land use rights 4,903,343
As at June 30, 2022, ownership certificates of land use right (“Land ownership Certificates”) for certain land use rights of the Group
with carrying amounts of approximately RMB4,903,343 (cost: RMB6,685,352) had not yet been obtained by the Group (as at
December 31, 2021, carrying amount: RMB4,963,913, cost: RMB6,685,352). The Company’s management is of the view that there is
no legal restriction for the Group to apply for and obtain the Land Ownership Certificates and has no adverse effect on the Group’s
business operation.
49
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2022
15. Development expenditure
Unit: RMB
The increased amount in the
The decrease amount in the period
period
Opening
Item Recognized as Transfer to Closing balance
balance Internal
development Others intangible current profit
expenditure assets and loss
Development
72,019,362 27,709,486 8,010,026 91,718,822
expenditure
Total 72,019,362 27,709,486 8,010,026 91,718,822
During Jan.-Jun. 2022, the total amount of research and development expenditures of the Group was RMB 293,587,416 (Jan.-Jun.
2021: RMB 235,137,041), including RMB265,877,930 (Jan.-Jun. 2021: RMB 224,886,882) recorded in income statement for current
period and the research and development expenditure with the amount of RMB 8,010,026 recognized as intangible assets for the
current period (Jan.-Jun. 2021: 1,247,970). At June 30, 2022, the intangible assets arising from internal research and development
accounted for 20.07% of total of intangible assets (31 December 2021: 20.47%).
16. Goodwill
(1) Book value of goodwill
Unit: RMB
Name of the companies Opening balance Increased this term Decreased this term Closing balance
Tianjin CSG
Energy-Saving Glass 3,039,946 3,039,946
Co., Ltd.
Xianning CSG
4,857,406 4,857,406
Photoelectric
Shenzhen CSG Display 389,494,804 389,494,804
Total 397,392,156 397,392,156
(2) Goodwill impairment provision
Unit: RMB
Name of the companies Opening balance Increased this term Decreased this term Closing balance
Shenzhen CSG
267,244,297 267,244,297
Displayer
Total 267,244,297 267,244,297
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2022
17. Long-term prepaid expenses
Unit: RMB
Item Opening balance Increased this term Amortized this term Other decreases
Expenses to be
3,013,721 510,145 289,845 3,234,021
amortized
Total 3,013,721 510,145 289,845 3,234,021
18. Deferred income tax assets/deferred income tax liabilities
(1) Unoffset deferred income tax assets
Unit: RMB
Closing balance Opening balance
Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference assets difference assets
Provision for asset
900,912,768 136,375,295 1,005,602,209 152,036,386
impairments
Deductible loss 309,731,654 59,171,312 621,359,522 106,718,563
Government grants 167,900,580 25,975,215 165,972,475 25,755,549
Accrued expenses 6,019,406 902,911 7,908,397 1,186,260
Inventory unrealized
40,952,102 6,091,553 50,797,613 7,619,642
profit
Depreciation of fixed
67,473,650 14,344,275 65,556,309 13,582,668
assets
Total 1,492,990,160 242,860,561 1,917,196,525 306,899,068
(2)Unoffset deferred income tax liabilities
Unit: RMB
Closing balance Opening balance
Deductible
Item Deferred income tax Deductible temporary Deferred income tax
temporary
liabilities difference liabilities
difference
Depreciation of fixed assets 533,523,643 81,918,910 527,215,830 80,756,420
Changes in fair value of
370,245,713 55,536,857 370,245,713 55,536,857
investment property
Total 903,769,356 137,455,767 897,461,543 136,293,277
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2022
(3) The net balances of deferred tax assets or liabilities
Unit: RMB
Off-set amount of Closing balance of Off-set amount of Opening balance of
deferred income tax deferred income tax deferred income tax deferred income tax
Item
assets and liabilities at assets or liabilities assets and liabilities at assets or liabilities after
the period-end after off-set the period-beginning off-set
Deferred tax assets 46,199,114 196,661,447 51,713,145 255,185,923
Deferred tax liabilities 46,199,114 91,256,653 51,713,145 84,580,132
(4) Details of unrecognized deferred income tax assets
Unit: RMB
Item Closing balance Opening balance
Deductible losses 2,046,255,537 2,045,391,888
Total 2,046,255,537 2,045,391,888
(5) Deductible losses of unrecognized deferred income tax assets will due the following years
Unit: RMB
Year Closing balance Opening balance Note
Year of 2022 83,303,539 83,303,539
Year of 2023 146,238,837 146,238,837
Year of 2024 178,208,832 178,208,832
Year of 2025 939,085,536 939,085,536
Year of 2026 698,555,144 698,555,144
Year of 2027 863,649
Total 2,046,255,537 2,045,391,888
19. Other non-current assets
Unit: RMB
Closing balance Opening balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Prepayment of
engineering 361,724,043 361,724,043 469,352,622 469,352,622
equipment
Prepayment for
lease of land use 64,250,000 64,250,000 14,810,000 14,810,000
rights
Large-denominati 100,000,000 100,000,000 100,000,000 100,000,000
52
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2022
on certificates of
deposit
Total 525,974,043 525,974,043 584,162,622 584,162,622
20. Short-term borrowings
(1) Classification of short-term borrowings
Unit: RMB
Item Closing balance Opening balance
Guaranteed loan 168,108,522 80,770,000
Unsecured loan 300,000,000 100,000,000
Total 468,108,522 180,770,000
(i)On June 30, 2022, the Company provided guarantees for short-term loans of RMB168,108,522 (31 December 2021: RMB
80,770,000).
(ii) On June 30, 2022, the interest rate range of Short-term borrowings is 2.70% - 4.05% (December 31, 2021: 3.40% - 3.90%).
21. Notes payable
Unit: RMB
Item Closing balance Opening balance
Trade acceptance notes 145,475,638 107,571,279
Bank acceptance notes 404,463,990 293,091,434
Total 549,939,628 400,662,713
22. Contract liabilities
Unit: RMB
Item Closing balance Opening balance
Contract liabilities 413,885,125 335,188,642
Total 413,885,125 335,188,642
23. Accounts payable
(1) List of accounts payable
Unit: RMB
Item Closing balance Opening balance
Materials payable 945,889,859 665,770,883
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2022
Equipment payable 244,832,123 268,623,795
Construction expenses payable 433,608,433 372,802,783
Freight payable 78,993,780 68,894,843
Utilities payable 88,134,291 47,260,003
Others 5,474,045 5,499,005
Total 1,796,932,531 1,428,851,312
(2) Significant accounts payable due for over one year
Unit: RMB
Item Closing balance Unpaid reason
The final account of the project has not been
Construction and equipments 172,773,389
completed, so it has not been settled.
Total 172,773,389
24. Employee benefits payable
(1) List of employee benefits payable
Unit: RMB
Item Opening balance Increased this term Decreased this term Closing balance
I. Short-term employee benefits
426,027,259 881,217,123 1,019,531,915 287,712,467
payable
II. Welfare after departure-
11,722 73,417,024 73,412,071 16,675
defined contribution plans
III.Termination benefits 173,998 1,462,816 1,636,814
Total 426,212,979 956,096,963 1,094,580,800 287,729,142
(2) List of short-term employee benefits
Unit: RMB
Item Opening balance Increased this term Decreased this term Closing balance
1. Wages and salaries, bonuses,
402,716,350 818,189,015 958,424,388 262,480,977
allowances and subsidies
2. Social security contributions 5,808 31,093,375 31,087,818 11,365
Including: Medical insurance 5,097 27,629,935 27,624,254 10,778
Work injury insurance 291 2,411,059 2,410,763 587
Maternity insurance 420 1,052,381 1,052,801
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2022
3. Housing funds 958,798 22,181,389 21,933,449 1,206,738
4.Labour union funds and
22,346,303 9,753,344 8,086,260 24,013,387
employee education funds
Total 426,027,259 881,217,123 1,019,531,915 287,712,467
(3) List of defined contribution plans
Unit: RMB
Item Opening balance Increased this term Decreased this term Closing balance
1. Basic pensions 11,644 71,000,361 70,995,998 16,007
2. Unemployment
78 2,416,663 2,416,073 668
insurance
Total 11,722 73,417,024 73,412,071 16,675
25. Tax payable
Unit: RMB
Item Closing balance Opening balance
Value-added-tax payable 63,220,964 77,539,743
Corporate income tax payable 63,421,971 81,469,865
Individual income tax payable 5,291,100 4,947,559
City maintenance and construction tax 4,221,243 5,853,393
Property tax 9,979,982 4,126,693
Education surcharge 3,232,672 4,662,534
Environmental tax 1,308,540 1,674,797
Others 3,975,678 4,735,097
Total 154,652,150 185,009,681
26. Other payables
Unit: RMB
Item Closing balance Opening balance
Interest payable 36,640,548 95,001,362
Other payables 185,226,388 194,439,115
Total 221,866,936 289,440,477
(1) Interest payable
Unit: RMB
55
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2022
Item Closing balance Opening balance
Interest on long-term loans with interest
paid by installments and principal repaid 3,722,120 2,558,374
at maturity
Interest payable for short-term
660,363 184,923
borrowings
Interest for corporate bonds 32,258,065 92,258,065
Total 36,640,548 95,001,362
(2) Other payables
1) Listing other payables by nature of the payment
Unit: RMB
Item Closing balance Opening balance
Guarantee deposits received from
101,021,553 101,467,608
construction contractors
Accrued operating costs and expenses(i) 39,421,751 51,592,989
Payable for contracted labour costs 22,061,379 21,273,645
Temporary receipts 9,630,262 6,033,599
Guarantee for disabled 6,727,370 5,796,364
Others 6,364,073 8,274,910
Total 185,226,388 194,439,115
(i) This item mainly includes various expenses incurred but not yet obtained an invoice at the end of the period, including utilities,
professional service fees, travel expenses, etc.
27. Non-current liabilities due within one year
Unit: RMB
Item Closing balance Opening balance
Bonds payable due within one year 1,997,931,024
Long-term borrowings due within 1 year 335,498,431 466,098,352
Long-term payables due within one year 37,830,760 36,865,104
Lease liabilities due within one year 653,324 857,092
Total 2,371,913,539 503,820,548
28. Other current liabilities
Unit: RMB
Item Closing balance Opening balance
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2022
Output tax to be transferred 47,430,142 39,799,309
Others 300,000 300,000
Total 47,730,142 40,099,309
29. Long-term borrowings
(1) Classification of long-term borrowings
Unit: RMB
Item Closing balance Opening balance
Guaranteed 1,916,136,468 779,059,824
Credit loan 1,245,000,000 690,000,000
Total 3,161,136,468 1,469,059,824
As at 30 June 2022, the interest of long-term borrowings varied from 2.95%-4.60% (31 December 2021: 4%-4.6%).
30. Bonds payable
(1) Bonds payable
Unit: RMB
Item Closing balance Opening balance
Bonds payable 1,996,587,330
Total 1,996,587,330
(2) Increase or decrease of bonds payable (excluding preferred shares, perpetual bonds and other financial instruments
classified as financial liabilities)
Unit: RMB
Issu Amortizat Curr
Fac Reclassified
e in Interest ion of ent Clos
e Issue Amount of Opening to non-current
ing
Name Term the accrued at premium repa liabilities due
val date issue balance bala
peri face value and yme within one
nce
ue year
od discount nt
2020-3-
20
24 to 3
CSG 100 2,000,000,000 1,996,587,330 60,000,000 1,343,694 1,997,931,024
2020-3- years
01
25
In March 2020, with the approval of China Securities Regulatory Commission, the company was approved to publicly issue 2020
corporate bonds (phase I) to qualified investors, with a face value of RMB 100, an issue amount of RMB 2 billion, a term of 3 years
(annual interest payment and principal repayment at maturity), and a coupon rate of 6%; The issuance date is from March 24, 2020 to
March 25, 2020, and the value date is March 25, 2020.
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2022
31.Lease liability
Unit: RMB
Item Closing balance Opening balance
Lease liability 220,138
Total 220,138
32.Long-term payables
Unit: RMB
Item Closing balance Opening balance
Long-term payables 149,062,955 168,258,062
Total 149,062,955 168,258,062
（1）Long-term payables by nature of payment
Unit: RMB
Item Closing balance Opening balance
Finance lease payable 149,062,955 168,258,062
33. Deferred income
Unit: RMB
Increase in current decrease in current
Item Opening balance Closing balance
period period
Government grants 564,129,128 3,000,000 71,815,510 495,313,618
Total 564,129,128 3,000,000 71,815,510 495,313,618
Projects involving government subsidies:
Unit: RMB
Account to other Related to
Increase in Closing
Item in debt Opening balance income in this assets or
current period balance
period income
Tianjin CSG Golden Sun Project Assets
40,217,551 1,687,446 38,530,105
(i) related
Dongguan CSG Golden Sun Assets
32,324,250 1,375,500 30,948,750
Project (ii) related
Hebei CSG Golden Sun Project Assets
33,000,000 1,375,000 31,625,000
(iii) related
Xianning CSG Golden Sun Assets
35,860,917 1,515,250 34,345,667
Project (iv) related
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2022
Account to other Related to
Increase in Closing
Item in debt Opening balance income in this assets or
current period balance
period income
Infrastructure compensation for Assets
23,462,746 2,020,769 21,441,977
Wujiang CSG Glass Co., Ltd (v) related
Qingyuan Energy-saving project Assets
10,909,167 1,235,000 9,674,167
(vi) related
Yichang Silicon products project Assets
10,546,875 1,406,250 9,140,625
(vii) related
Yichang CSG silicon slice Assets
19,100,966 2,500,000 991,272 20,609,694
auxiliary project (viii) related
Sichuan energy-saving glass Assets
3,859,380 827,010 3,032,370
project (ix) related
Group coating film experimental Assets
1,500,000 187,500 1,312,500
project (x) related
Yichang high purity silicon Assets
2,417,619 151,589 2,266,030
material project (xi) related
Yichang semiconductor silicon Assets
2,866,666 66,667 2,799,999
material project (xii) related
Yichang CSG Display project Assets
40,565,357 1,333,906 39,231,451
(xiii) related
Xianning Photoelectric project Assets
6,240,000 134,162 6,105,838
(xiv) related
Shenzhen medical equipment Assets
7,178,000 582,000 6,596,000
subsidy project(xv) related
Hebei float emission reward Assets
9,355,414 366,879 8,988,535
(xvi) related
Income
Group talent fund project (xvi) 171,000,000 171,000,000
related
Zhaoqing energy saving industry Income
87,255,711 54,579,905 32,675,806
support fund project(xvii) related
Assets
Others 26,468,509 500,000 1,979,405 24,989,104
related
Total 564,129,128 3,000,000 71,815,510 495,313,618
(i) The allowance was granted by Tianjin Municipal Government. The allowance was used for establishing PV power station by
Tianjin Energy Conservation Company. The facilities belonged to Tianjin Energy Conservation Company. The allowance will be
credited to income statement in 20 years, the useful life of the PV power station.
(ii) The allowance was granted by Dongguan Municipal Government. The allowance was used for establishing PV power station
by Dongguan CSG Architectural Glass Co., Ltd. The facilities belonged to Dongguan CSG upon completion. The allowance will be
credited to income statement in 20 years, the useful life of the PV power station.
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2022
(iii) The allowance was granted by Langfang Municipal Government. The allowance was used for establishing PV power station by
Hebei CSG Glass Co., Ltd. ("Hebei CSG"). When the facilities were set up, they belonged to Hebei CSG. The allowance will be
credited to income statement in 20 years, the useful life of the PV power station.
(iv) The allowance was granted by Xianning Municipal Government. The allowance was used for establishing PV power station by
Xianning CSG Glass Co Ltd. The facilities belonged to Xianning CSG upon completion. The allowance will be credited to income
statement in 20 years, the useful life of the PV power station.
(v) The allowance was infrastructure compensation granted by Wujiang municipal government, and will be credited to income
statement in 15 years, the shortest operating period as committed by the Group.
(vi) The allowance was granted by Guangdong Province and which was a pilot project for strategic emerging industry clusters
development and was used to establish high performance ultra-thin electronic glass production lines by Qingyuan CSG. The
allowance will be credited to income statement in 10 years, the useful life of the production line.
(vii) The balance represented amounts granted to Yi Chang CSG polysilicon Materials Co., Ltd. by Yichang City Dongshan
Development Corporation under the provisions of the investment contract signed between the Group and the Municipal Government
of Yi Chang. The proceeds were designed for the construction of electricity transformer and the pipelines. Yichang polysilicon is
entitled to the ownership of the facilities, which will be amortised by 16 years according to the useful life of the converting station.
(viii) It represented the government supporting fund obtained by Yichang polysilicon from the acquiring of the assets and liabilities
of Crucible project of Yichang Hejing Photoelectric Ceramic Co., Ltd. The proceeds would be amortised and credited to income
statement by 16 years after related assets were put into use.
(ix) It represented the funds granted by Chengdu local government for energy glass project. It will be amortised and credited to
income statement in 15 years, in accordance with the minimum operating period committed by the Group.
(x) The allowance was granted by Shenzhen City Development and Reform Commission for the development of Group Coating
Film experimental project. The grant will be amortised and credited to income statement in the estimated useful life of the relevant
fixed assets.
(xi) It represented the funds granted by Hubei local government for inport discount complement and international corporation
special subsidy. The grant will be amortised and credited to income statement by 12 to 15 years.
(xii) It represented the special subsidy of Yichang National Regional Strategic Emerging Industry Development Pilot Project II,
which is used to complement Yichang CSG PolysSilicon “Hubei semiconductor silicon preparative technique project laboratory”.
The grant will be amortised and credited to income statement by 15 years.
(xiii) It represented the funds granted by Yichang Municipal Government for Yichang CSG Display Company's flat project
construction support funds and construction of coil coating three-line project. The grant will be amortised and credited to income
statement by 15 years.
(xiv) It represented the funds granted by Xianning Government of the Project supporting fund for photoconductive glass production
line,which is used to pay for Xianning CSG Glass Co. Ltd. constructing the project of photoelectric photoelectric optical glass
production line . After the completion of the production line, the ownership belongs to Xianning photoelectric. The allowance will be
credited to income statement in 8 years, the useful life of the production line.
(xv) The allowance was granted by Shenzhen Municipal Government. The allowance was used for the production line of epidemic
prevention materials for Shenzhen CSG Medical Technology Co., Ltd. The facilities belonged to Shenzhen CSG Medical Technology
Co., Ltd upon completion. The allowance will be credited to income statement with the useful life of the production line.
(xvi) The allowance was granted by Administrative Commission of Yongqing County Ecological Environment Bureau.and Hebei
CSG. is used to produce line drop emission transformation, and the grant will be amortised and credited to income statement in the
residual life of the relevant fixed assets.
(xvii) The allowance was granted by Administrative Commission of Yichang High-tech Industrial Development Zone. For senior
management personnel, engineering technical personnel and senior professional technical team who are working at Yichang or plane
to introduction, RMB171 million fund was set up, as a special fund for talent introduction and housing resettlement.
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2022
(xviii) The allowance was granted by Administrative Commission of Guangdong Provincial Department of Finance is a
provincial industry to jointly establish financial support funds which is used to Z the development of enterprises, production and
operation, and other expenditure for Zhaoqing Energy Saving Company.
34. Share Capital
Unit: RMB
Changed in the report period(+,-)
Item Opening balance Transferred Closing balance
New issues Bonus issue Others Sub-total
from reserves
Total of
3,070,692,107 3,070,692,107
capital shares
35. Capital surplus
Unit: RMB
Item Opening balance Increased this term Decreased this term Closing balance
Capital premium (share
655,424,260 655,424,260
premium)
Other capital surplus -58,427,175 -58,427,175
Total 596,997,085 596,997,085
36. Other comprehensive income
Unit: RMB
Occurring in current period
After-tax After-tax
Opening Amount
Item incurred Less: income attribute to the attribute to Closing balance
balance
before income tax expense parent minority
tax
company shareholder
I. Other
comprehensive
income items which
can not be
reclassified to profit
or loss
II. Other
comprehensive
income items which 159,200,530 6,167,540 6,167,540 165,368,070
will be reclassified
to profit or loss
Differences on
-4,501,267 6,167,540 6,167,540 1,666,273
translation of
61
CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2022
foreign currency
financial statements
Finance incentives
for energy and
2,550,000 2,550,000
technical
transformation
Income from
conversion of self
use real estate and
161,151,797 161,151,797
land use right into
investment real
estate
Total of other
comprehensive 159,200,530 6,167,540 6,167,540 165,368,070
income
37. Special reserves
Unit: RMB
Item Opening balance Increased this term Decreased this term Closing balance
Safety production cost 7,296,397 4,853,948 10,297,642 1,852,703
Total 7,296,397 4,853,948 10,297,642 1,852,703
38. Surplus reserves
Unit: RMB
Item Beginning of term Increased this term Decreased this term End of term
Statutory surplus
1,017,034,942 1,017,034,942
reserve
Discretionary surplus
127,852,568 127,852,568
reserve
Total 1,144,887,510 1,144,887,510
39. Undistributed profits
Unit: RMB
Item The current period The same period of last year
Retained earnings at the end of the previous term
6,450,587,417 5,336,266,412
before adjustment
Retained earnings at the beginning of this term
6,450,587,417 5,336,266,412
after adjustment
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2022
Add: net profits belonging to equity holders of the
1,001,174,398 1,352,517,465
Company
Less: Common stock dividends payable 614,138,421 307,069,211
Retained earnings in the end 6,837,623,394 6,381,714,666
40. Revenue and cost of sales
Unit: RMB
Occurred in current term Occurred in previous term
Item
Revenue Cost Revenue Cost
Revenue from main operations 6,421,792,209 4,599,587,540 6,549,257,796 4,117,364,759
Revenue from other operations 97,424,467 38,058,387 65,544,742 9,262,386
Total 6,519,216,676 4,637,645,927 6,614,802,538 4,126,627,145
41. Tax and surcharge
Unit: RMB
Item Occurred in current term Occurred in previous term
City maintenance and construction tax 15,694,124 20,244,886
Educational surcharge 13,036,606 17,918,346
Housing property tax 17,222,873 16,177,724
Land use rights 8,675,097 11,475,052
Stamp tax 3,840,095 3,873,467
Environmental protection tax 2,206,638 3,569,685
Others 605,189 706,894
Total 61,280,622 73,966,054
42. Sales expenses
Unit: RMB
Item Occurred in current term Occurred in previous term
Freight expenses 2,557,634 5,430,828
Employee benefits 92,473,703 82,609,837
Entertainment expenses 5,362,131 10,768,857
Business travel expenses 2,856,337 4,144,027
Vehicle use fee 4,488,510 3,994,805
Rental expenses 4,437,109 3,608,518
Depreciation expenses 396,591 386,840
Insurance premium 8,951,501 1,943,539
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2022
Others 12,383,136 12,438,764
Total 133,906,652 125,326,015
43. Administrative expenses
Unit: RMB
Item Occurred in current term Occurred in previous term
Employee benefits 194,016,411 205,775,425
Depreciation expenses 29,261,329 30,558,014
Amortization of intangible assets 31,408,498 31,383,145
General office expenses 13,393,317 14,283,686
Labour union funds 9,792,599 9,143,124
Entertainment fees 8,507,539 8,583,533
Business travel expenses 2,194,600 3,293,171
Utility fees 2,955,260 2,661,302
Canteen fee 4,624,155 3,737,420
Vehicle use fee 3,213,151 2,818,991
Consulting advisers 3,470,195 7,243,698
Others 15,798,758 35,433,195
Total 318,635,812 354,914,704
44. Research and development expenses
Unit: RMB
Item Occurred in current term Occurred in previous term
Research and development expenses 265,877,930 224,886,882
Total 265,877,930 224,886,882
45. Finance expenses
Unit: RMB
Item Occurred in current term Occurred in previous term
Interest on borrowings 118,724,723 103,386,761
Less: Capitalised interest 26,740,119 1,416,342
Interest expenses 91,984,604 101,970,419
Less: Interest income 30,756,704 20,024,847
Exchange losses -210,284 3,871,530
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2022
Others 1,779,736 1,182,897
Total 62,797,352 86,999,999
46. Other income
Unit: RMB
Source of other gains Occurred in current term Occurred in previous term
Government subsidy amortization 71,815,510 16,158,100
Industry support funds 1,500,000 1,782,700
Government incentive funds 17,203,284 11,750,470
Research grants 2,196,600 2,129,180
Others 6,587,158 4,733,354
Total 99,302,552 36,553,804
47. Investment income
Unit: RMB
Item Occurred in current term Occurred in previous term
Structural deposit income 14,478,503 3,075,863
Fixed deposit income 1,935,192 596,467
Total 16,413,695 3,672,330
48. Credit impairment losses
Unit: RMB
Item Occurred in current term Occurred in previous term
Losses on bad debts of other receivables -396,253 -110,593
Losses on bad debts of accounts receivable -1,095,969 -2,413,455
Total -1,492,222 -2,524,048
49. Asset impairment losses
Unit: RMB
Item Occurred in current term Occurred in previous term
1.Decline in the value of inventories 1,456
2.Impairment loss of fixed assets -26,753,082
Total 1,456 -26,753,082
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2022
50. Asset disposal income
Unit: RMB
Source of income from assets disposal Occurred in current term Occurred in previous term
Gains and losses on disposal of non current assets 12,745,461 137,638
Total 12,745,461 137,638
51. Non-operating income
Unit: RMB
Amount of non-recurring gain
Item Occurred in current term Occurred in previous term and loss included in the report
period
Compensation income 45,951 2,504,317 45,951
Amounts unable to pay 3,861,020 2,998,725 3,861,020
Insurance claim 9,040,000 525,484 9,040,000
Others 2,186,007 1,523,272 2,186,007
Total 15,132,978 7,551,798 15,132,978
52. Non-operating expenses
Unit: RMB
Amount of non-recurring gain
Item Occurred in current term Occurred in previous term and loss included in the report
period
Donation expenditure 1,731,127 265,306 1,731,127
Compensation 599,074 599,074
Financial aid refund 74,583 15,028,336 74,583
Others 1,255,286 1,168,343 1,255,286
Total 3,660,070 16,461,985 3,660,070
53. Income tax expenses
(1) List of income tax expenses
Unit: RMB
Item Occurred in current term Occurred in previous term
Current income tax expenses 103,724,527 260,737,212
Deferred income tax expenses 65,200,997 -5,456,922
Total 168,925,524 255,280,290
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2022
(2) Adjustment process of accounting profit and income tax expense
Unit: RMB
Item Occurred in current term
Total profit 1,177,516,231
Current income tax expense accounted by tax and relevant
181,726,624
regulations
Adjusting the effect of prior period income tax -3,872,718
Impact of non-deductible costs, expenses and losses 851,340
Impact on the use of deductible loss of deferred income tax
-5,210,915
assets not recognized in previous period
Influence deductible losses of unrecognized deferred income
129,547
tax assets
Impact of tax incentives -4,698,354
Income tax expenses 168,925,524
54. Other comprehensive income
See the note for details.
55. Items of the cash flow statement
(1) Cash received relating to other operating activities
Unit: RMB
Item Occurred in current term Occurred in previous term
Interest income 30,756,704 20,024,847
Government grant 30,487,042 113,114,204
Others 25,992,822 45,686,124
Total 87,236,568 178,825,175
(2) Cash paid relating to other operating activities
Unit: RMB
Item Occurred in current term Occurred in previous term
Freight expenses 3,928,266 7,337,545
General office expenses 19,162,389 21,928,236
Business travel expenses 7,379,731 9,925,103
Entertainment fees 16,277,475 20,105,592
Vehicle use fee 8,129,592 6,874,692
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2022
Maintenance fee 13,668,199 10,878,076
Rental expenses 10,391,291 11,665,203
Insurance 22,824,587 7,889,601
Commission 1,610,434 1,182,897
Consulting fees 6,193,327 5,050,890
Others 94,303,923 143,938,799
Total 203,869,214 246,776,634
(3) Other cash received related to investment activities
Unit: RMB
Item Occurred in current term Occurred in previous term
Deposit 26,124,986
Income from trial production of
6,011,365
construction in progress
Total 32,136,351
(4) Other cash paid related to investment activities
Unit: RMB
Item Occurred in current term Occurred in previous term
Trial production expenditure in
6,911,853
construction
Investment Deposit and Margin 19,138,102
Total 19,138,102 6,911,853
(5) Other cash received related to financing activities
Unit: RMB
Item Occurred in current term Occurred in previous term
Collection of A/B share tax 206,753
Total 206,753
(6) Other cash paid related to financing activities
Unit: RMB
Item Occurred in current term Occurred in previous term
Repay financing leases 23,022,757
Withholding tax on A/B shares, etc. 1,142,255 390,507
Total 24,165,012 390,507
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2022
56. Supplement information to the cash flow statement
(1) Supplement information to the cash flow statement
Unit: RMB
SupplementaryInfo. Amount of this term Amount of last term
1. Reconciliation from net profit to cash flows from operating
activities
Net profit 1,008,590,707 1,368,977,904
Add: Provisions for assets impairment -1,456 26,753,082
Credit impairment loss 1,492,222 2,524,048
Depreciation of fixed assets, depletion of oil and gas assets,
435,495,584 448,555,136
depreciation of productive biological assets
Depreciation of right-of-use assets 877,303 471,792
Amortization of intangible assets 31,408,498 31,383,145
Amortization of long-term prepaid expenses 289,845 163,410
Losses on disposal of fixed assets intangible assets and other
-12,745,461 -137,638
long-term assets (“- “for gains)
Finance expenses (“- “for gains) 91,984,604 101,970,419
Investment loss (“- “for gains) -16,413,695 -3,672,330
Decrease in deferred income tax assets (“- “for increase) 58,524,476 -8,575,782
Increase of deferred income tax liability (“- “for decrease) 6,676,521 3,118,860
Decrease of inventory (“- “for increase) -668,865,872 -236,251,630
Decrease of operational receivable items (“- “for increase) -544,965,419 -260,405,962
Increase of operational payable items (“- “for decrease) 505,601,316 224,537,331
Others 4,853,948 -1,166,410
Net cash flow generated by business operation 902,803,121 1,698,245,375
2. Net change of cash and cash equivalents
Balance of cash at the end of the period 2,863,965,769 1,647,672,831
Less: Initial balance of cash 2,756,477,572 2,124,028,196
Net increasing of cash and cash equivalents 107,488,197 -476,355,365
(2) Formation of cash and cash equivalents
Unit: RMB
Item Closing balance Opening balance
I. Cash 2,863,965,769 2,756,477,572
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2022
Incl: Cash on hand 130
Bank deposits that can be readily
2,523,965,640 2,453,477,573
drawn on demand
Other cash balances that can be
339,999,999 302,999,999
readily drawn on demand
II. Balance of cash and cash equivalents at the
2,863,965,769 2,756,477,572
end of the period
57. Assets with restricted ownership or use rights
Unit: RMB
Item Ending book value Reason for restriction
Monetary assets 6,076,772 Circulation of margin, etc. is restricted
Fixed assets 148,986,093 Financial leasing is restricted
Total 155,062,865
58. Foreign currency monetary items
(1) Foreign currency monetary items
Unit: RMB
Closing balance of foreign Closing
Item Exchange rate
currency balance convert to RMB
Cash at bank and on hand 56,375,983
Incl： USD 6,088,330 6.7114 40,861,221
EUR 890,687 7.0084 6,242,290
HKD 10,827,830 0.8552 9,259,960
AUD 797 4.6145 3,680
JPY 16,395 0.0491 805
SGD 1,666 4.8170 8,027
Accounts receivable 72,743,784
Incl： USD 9,720,348 6.7114 65,237,143
EUR 834,785 7.0084 5,850,510
HKD 1,936,542 0.8552 1,656,131
Accounts payable 38,601,456
Incl： USD 5,422,812 6.7114 36,394,660
EUR 188,656 7.0084 1,322,176
HKD 736,623 0.8552 629,960
JPY 3,363,707 0.0491 165,158
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Closing balance of foreign Closing
Item Exchange rate
currency balance convert to RMB
GBP 11,000 8.1365 89,502
59. Government subsidy
(1) Basic situation of government subsidies
Unit: RMB
Amount included in current
Type Amount Presentation item
profit and loss
Government subsidy
71,815,510 Other income 71,815,510
amortization
Other government subsidies 27,487,042 Other income 27,487,042
(2) Return of government subsidies
√Applicable □ Not applicable
Unit: RMB
Item Amount Reason
Shenzhen float high-strength
ultra-thin glass industrialization 74,583
research project
VIII. The changes of consolidation scope
1. Changes in scope of consolidation for other reasons
On February 14, 2022, the Group set up a subsidiary, Yichang CSG New Energy Material Technology Co.,
Ltd.(hereinafter referred to as " Yichang New Energy Materials Co., Ltd "). As of June 30, 2022, the Group had made a
monetary contribution of RMB 1 million.
IX. Equity in other entities
1. Equity in subsidiary
(1) Composition of the Group
Shareholding
Major business Place of Way of
Name of subsidiary Scope of business (%)
location registration acquisition
Direct Indirect
Chengdu CSG Chengdu, PRC Chengdu, PRC Development, production and sales of 75% 25% Establishment
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2022
special glass
Sichuan CSG Energy Development, production and sales of
Chengdu, PRC Chengdu, PRC 75% 25% Split-off
Conservation special glass and processing of glass
Tianjin Energy Development, production and sales of
Tianjin, PRC Tianjin, PRC 75% 25% Establishment
Conservation special glass
Dongguan CSG
Dongguan, PRC Dongguan, PRC Intensive processing of glass 75% 25% Establishment
Engineering
Dongguan CSG Solar Dongguan, PRC Dongguan, PRC Production and sales of solar glass 75% 25% Establishment
Dongguan CSG Production and sales of hi-tech green
Dongguan, PRC Dongguan, PRC 100% Establishment
PV-tech battery and components
Yichang CSG Production and sales of high-purity silicon
Yichang, PRC Yichang, PRC 75% 25% Establishment
Polysilicon materials
Wujiang CSG
Wujiang, PRC Wujiang, PRC Intensive processing of glass 75% 25% Establishment
Engineering
Hebei CSG Yongqing, PRC Yongqing, PRC Production and sales of special glass 75% 25% Establishment
Wujiang CSG Wujiang, PRC Wujiang, PRC Production and sales of special glass 100% Establishment
China Southern Glass Hong Kong, Hong Kong,
Investment holding 100% Establishment
(Hong Kong) PRC PRC
Xianning CSG Xianning, PRC Xianning, PRC Production and sales of special glass 75% 25% Establishment
Xianning CSG
Xianning, PRC Xianning, PRC Intensive processing of glass 75% 25% Split-off
Energy-Saving
Qingyuan CSG Production and sales of ultra-thin
Qingyuan, PRC Qingyuan, PRC 100% Establishment
Energy-Saving electronic glass
Shenzhen CSG
Financial Leasing Co., Shenzhen, PRC Shenzhen, PRC Finance leasing, etc. 75% 25% Establishment
Ltd.
Jiangyou CSG Mining
Production and sales of silica and its
Development Co., Jiangyou, PRC Jiangyou, PRC 100% Establishment
by-products
Ltd.
Shenzhen CSG Production and sales of display component
Shenzhen, PRC Shenzhen, PRC 60.8% Acquisition
Display products
Zhaoqing
Zhaoqing, PRC Zhaoqing, PRC Production and sales of special glass 100% Establishment
Energy-SavingGlass
Zhaoqing Automobile
Zhaoqing, PRC Zhaoqing, PRC Production and sales of special glass 100% Establishment
Glass
Develop, manufacture and sell key
Anhui CSG New
Fengyang, PRC Fengyang, PRC materials or complete sets of equipment 100% Establishment
Energy Materials
for new energy power generation
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2022
Anhui CSG New Quartzite mining, processing, purification,
Fengyang, PRC Fengyang, PRC 100% Establishment
Quartz material sales
Anhui Mining Fengyang, PRC Fengyang, PRC Mining of mineral resources 60% Establishment
Xi'an Energy-saving Xi'an, PRC Xi'an, PRC Production and sales of special glass 55% 45% Establishment
Guangxi new energy
Longgang, ,PRC Longgang, ,PRC Production and sales of special glass 75% 25% Establishment
materials Co., Ltd
(2)Important non-wholly owned subsidiary
Unit: RMB
Shareholding of Total profit or loss attributable to Dividends distributed to Minority interest
Subsidiaries minority minority shareholders for the year minority interests for the as at 30 June
shareholders ended 30 June 2022 year ended 30 June 2022 2022
Shenzhen CSG Display 39.2% 6,859,691 411,269,177
(3) Major financial information of important non-wholly owned subsidiaries
Unit: RMB
Name of Closing balance
Subsidiary Current assets Non-current assets Total assets Current liabilities Non-current liabilities Total liabilities
303,462,273 1,348,133,307 1,651,595,580 464,018,122 82,380,830 546,398,952
Shenzhen CSG Opening balance
Display Current assets Non-current assets Total assets Current liabilities Non-current liabilities Total liabilities
210,979,056 1,378,748,179 1,589,727,235 448,244,735 54,572,497 502,817,232
Unit: RMB
Occurred in current term Occurred in previous term
Cash flows Cash flows
Name of Total Total
from from
Subsidiary Revenue Net profit comprehensive Revenue Net profit comprehensive
operating operating
income income
activities activities
Shenzhen
276,320,544 21,191,648 21,191,648 20,948,584 378,092,939 46,313,955 46,313,955 57,269,209
CSG Display
X. Risk related to financial instrument
The Group's activities expose it to a variety of financial risks: market risk (primarily currency risk and interest rate risk),
credit risk and liquidity risk. The Group's overall risk management programme focuses on the unpredictability of
financial markets and seeks to minimise potential adverse effects on the Group's financial performance.
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2022
(1) Market risk
(a) Foreign exchange risk
The Group’s major operational activities are carried out in Mainland China and a majority of the transactions are
denominated in RMB. However, some of the export business is settled in foreign currency. Besides, the Group is exposed
to foreign exchange risk arising from the recognized assets and liabilities, and future transactions denominated in foreign
currencies, primarily with respect to US dollars and HKD. The Group monitors the scale of foreign currency transactions,
foreign currency assets and liabilities, and adjusts settlement currency of export business, to furthest reduce the currency
risk.
As at 30 June 2022, the carrying amounts in RMB equivalent of the Group’s assets and liabilities denominated in foreign
currencies are summarized below:
30 June 2022
USD HKD Others Total
Financial assets denominated in foreign currency
Cash at bank and on hand 40,861,221 9,259,960 6,254,802 56,375,983
Receivables 65,237,143 1,656,131 5,850,510 72,743,784
Total 106,098,364 10,916,091 12,105,312 129,119,767
Financial liabilities denominated in foreign currency
Payables 36,394,660 629,960 1,576,836 38,601,456
Total 36,394,660 629,960 1,576,836 38,601,456
31 December 2021
USD HKD Others Total
Financial assets denominated in foreign currency
Cash at bank and on hand 26,509,188 2,379,817 115,374 29,004,379
Receivables 111,133,429 1,732,573 6,026,900 118,892,902
Total 137,642,617 4,112,390 6,142,274 147,897,281
Financial liabilities denominated in foreign currency
Payables 40,306,973 201,921 2,416,770 42,925,664
Total 40,306,973 201,921 2,416,770 42,925,664
As at 30 June 2022, if the currency had strengthened/weakened by 10% against the USD while all other variables had
been held constant, the Group’s net profit for the year would have been approximately RMB5,924,815 lower/higher (31
December 2021: approximately RMB 8,273,530 lower/higher) for various financial assets and liabilities denominated in
USD.
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2022
Other changes in exchange rate had no significant influence on the Group's operating activities.
(b) Interest rate risk
The Group's interest rate risk arises from long-term interest bearing borrowings including long-term borrowings and
bonds payable. Financial liabilities issued at floating rates expose the Group to cash flow interest rate risk. Financial
liabilities issued at fixed rates expose the Group to fair value interest rate risk. The Group determines the relative
proportions of its fixed rate and floating rate contracts depending on the prevailing market conditions. As at 30 June 2022,
the Group’s long-term interest-bearing debt at variable rates and fixed rates as illustrated below:
Type 30 June 2022 31 December 2021
Debt at fixed rates 789,569,526 2,404,372,257
Debt at variable rates 2,371,566,942 1,061,274,897
Total 3,161,136,468 3,465,647,154
The Group continuously monitors the interest rate position of the Group. Increases in interest rates will increase the cost
of new borrowing and the interest expenses with respect to the Group’s outstanding floating rate borrowings, and
therefore could have a material adverse effect on the Group’s financial position. The Group makes adjustments timely
with reference to the latest market conditions, which includes increasing/decreasing long-term fixed rate debts at the
anticipation of increasing/decreasing interest rate.
(2) Credit risk
Credit risk is managed on the grouping basis. Credit risk mainly arises from cash at bank, notes receivable, accounts
receivable, other receivables.
The Group expects that there is no significant credit risk associated with cash at bank since they are mainly deposited at
state-owned banks and other medium or large size listed banks. Management does not expect that there will be any
significant losses from non-performance by these counterparties. Furthermore, as the Group’s bank acceptance notes
receivable are generally accepted by the state-owned banks and other large and medium listed banks, management
believes the credit risk should be limited.
In addition, the Group has policies to limit the credit exposure on accounts receivable, other receivables and trade
acceptance notes receivable. The Group assesses the credit quality of and sets credit limits on its customers by taking into
account their financial position, the availability of guarantee from third parties, their credit history and other factors such
as current market conditions. The credit history of the customers is regularly monitored by the Group. In respect of
customers with a poor credit history, the Group will use written payment reminders, or shorten or cancel credit periods, to
ensure the overall credit risk of the Group is limited to a controllable extent.
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(3) Liquidity risk
Cash flow forecasting is performed by each subsidiary of the Group and aggregated by the Group’s finance department in
its headquarters. The Group’s finance department at its headquarters monitors rolling forecasts of the Group's short-term
and long-term liquidity requirements to ensure it has sufficient cash reserve, while maintaining sufficient headroom on its
undrawn committed borrowing facilities from major financial institutions so that the Group does not breach borrowing
limits or covenants on any of its borrowing facilities to meet the short-term and long-term liquidity requirements.
The management intends to take the following measures to ensure that the group's liquidity risk is within a controllable
range.
(a) The Group will have steady cash inflows from operating activities;
(b) The Group will pay the debts that mature and finance the construction projects through the existing bank facilities;
(c) The Group will closely monitor the payment of construction expenditure in terms of payment time and amount.
The financial liabilities of the Group at the balance sheet date are analysed by their maturity date below at their
undiscounted contractual cash as follows:
30 June 2022
Within 1 year 1 to 2 years 2 to 5 years Over 5 years Total
Short-term borrowings 481,724,918 481,724,918
Notes payable 549,939,628 549,939,628
Accounts payable 1,796,932,531 1,796,932,531
Other payables 221,866,936 221,866,936
Other current liabilities 47,730,142 47,730,142
Non-current liabilities due within
2,468,442,587 2,468,442,587
one year
Long-term payables 149,062,955 149,062,955
Long-term borrowings 125,145,270 1,413,083,190 1,544,631,303 471,015,574 3,553,875,337
Total 5,691,782,012 1,562,146,145 1,544,631,303 471,015,574 9,269,575,034
31 December 2021
Over 5
Within 1 year 1 to 2 years 2 to 5 years years Total
Short-term borrowings 182,299,506 182,299,506
Notes payable 400,662,713 400,662,713
Accounts payable 1,428,851,312 1,428,851,312
Other payables 289,440,477 289,440,477
Other current liabilities 40,099,309 40,099,309
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Non-current liabilities due within
514,569,537 514,569,537
one year
Long-term payables 168,258,062 168,258,062
Long-term borrowings 60,580,998 374,241,583 889,057,539 363,125,181 1,687,005,301
Bonds payable 120,000,000 2,120,000,000 2,240,000,000
Total 3,036,503,852 2,662,499,645 889,057,539 363,125,181 6,951,186,217
XI. Disclosure of fair value
1. The ending fair value of assets and liabilities measured at fair value
Unit: RMB
Fair value at the end of the period
Level 1 Level 2 Level 3 Total
Financial assets measured at fair value with changes included in
current profit and loss
Structured deposits 1,209,000,000 1,209,000,000
Financial assets measured at fair value through other
comprehensive income
Receivables Financing 582,328,808 582,328,808
Investment property 383,084,500 383,084,500
Total 2,174,413,308 2,174,413,308
XII. Related party and related Transaction
1. Information of the parent company
The Company regards no entity as the parent company.
2. Information of the subsidiaries
The general information and other related information of the subsidiaries are set out in attached note.
3. Joint venture of the Company
The general information and other related information of joint ventures of the Company are set out in attached note.
4. Other related parties
Other related parties Relationship between other related parties and the enterprise
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2022
Foresea Life Insurance Co., Ltd. The Company's largest shareholder
Shenzhen Jushenghua Co., Ltd. A related party of the Company's largest shareholder
Xinjiang Qianhai United Property Insurance Co., Ltd. A related party of the Company's largest shareholder
Suzhou Baoqi Logistics Co., Ltd. A related party of the Company's largest shareholder
Shenzhen Baoneng Automobile Sales Service Co., Ltd A related party of the Company's largest shareholder
5. Related party transactions
(1)Related transactions for the purchase and sale of goods, provision and receipt of services
Purchase of goods / acceptance of labor services
Unit: RMB
Amount incurred Whether the Amount incurred
Related party Related party transactions in the current transaction limit is in the previous
period exceeded period
Suzhou Baoqi Logistics Co., Ltd. Acceptance of labor services None 5,247,713
Foresea Life Insurance Co., Ltd. Purchase Purchase of life insurance 3,323,544 None 1,224,197
Shenzhen Baoneng Automobile Purchase of goods None
1,818,050
Sales Service Co., Ltd
Xinjiang Qianhai United Property Purchase auto insurance None
84,149
Insurance Co., Ltd.
Other related parties Purchase of goods 245,339 None 609,968
Total 3,568,883 None 8,984,077
Sales of goods / provision of labor services
Unit: RMB
Related party Related party transactions Amount incurred in the Amount incurred in the
current period previous period
Shenzhen Jushenghua Co., Ltd. Sales of goods 500
Other related parties Sales of goods 208,935 559,600
Total 208,935 560,100
（2）Related lease
The company as the lessee：
Unit: RMB
Rental costs for Variable lease
Name Types Interest expense of
simplified payments not Increased use right
of of Rent paid lease liabilities
short-term leases included in the assets
lessor leased undertaken
and low value asset measurement of
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2022
assets leases(if applicable) lease liabilities (if
applicable)
Amount Amount Amount Amount Amount Amount Amount Amount Amount Amount
incurred incurred incurred incurred incurred incurred incurred incurred incurred incurred
in the in the in the in the in the in the in the in the in the in the
current previous current previous current previous current previous current previous
period period period period period period period period period period
Other
Leased
related 442,325 19,559
plant
parties
6. Accounts receivable and payable of related parties
(1) Receivables
Unit: RMB
Closing balance Opening balance
Related party
Book balance Bad debt provision Book balance Bad debt provision
Foresea Life Insurance Co., Ltd. 457,134 1,715
Other related parties 283,146 4,064 240,905 4,819
Total 740,280 4,064 242,620 4,819
(2) Payables
Related party Closing book balance Opening book balance
Suzhou Baoqi Logistics Co., Ltd. 518,280 2,731,013
Other related parties 134,025 133,408
Total 652,305 2,864,421
XIII. Share based payment
1.General situation of share based payment
□ Applicable √ Not applicable
2.Share based payment settled by equity
□ Applicable √ Not applicable
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2022
3.Cash settled share based payment
□ Applicable √ Not applicable
XIV. Commitments and contingencies
1. Significant commitments
(1) Capital commitments
Capital expenditures contracted for by the Group at the balance sheet date but are not yet necessary to be recognized on
the balance sheet are as follows:
Unit: RMB
Item 30 June 2022 31 December 2021
Buildings, machinery and equipment 3,255,792,770 2,994,615,272
XV. Other important matters
1. Segment information
(1) Definition foundation of segment and accounting policy
The Group's business activities are categorised by product and service as follows:
Glass segment, engaged in production and sales of float glass and engineering glass and other building energy - saving
materials, the silica for the production thereof, etc.
Electronic glass and display segment is responsible for production and sales of display components and special
ultra-thin glass products, etc.
Solar energy segment, engaged in manufacturing and sales of polysilicon and solar battery and applications, etc.
The reportable segments of the Group are the business units that provide different products or service. Different
businesses require different technologies and marketing strategies. The Group, therefore, separately manages the
production and operation of each reportable segment and Estimates their operating results respectively, in order to make
decisions about resources to be allocated to these segments and to assess their performance.
Inter-segment transfer prices are measured by reference to selling prices to third parties.
The assets are allocated based on the operations of the segment and the physical location of the asset. The liabilities are
allocated based on the operations of the segment. Expenses indirectly attributable to each segment are allocated to the
segments based on the proportion of each segment’s revenue.
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(2)Financial information of segment
Unit: RMB
Electronic glass Solar energy and
Item Glass industry Unallocated Elimination Total
and display other industries
Revenue from
4,374,933,542 722,676,247 1,405,993,071 15,613,816 6,519,216,676
external customers
Inter-segment
53,836,884 87,239,522 27,648,076 214,893,714 -383,618,196
revenue
Interest income 1,783,726 281,292 308,648 28,383,038 30,756,704
Interest expenses 4,057,266 3,838,337 -135,478 84,224,479 91,984,604
Asset impairment
-1,456 -1,456
losses
Credit impairment
848,260 -320,455 879,333 85,084 1,492,222
loss
Depreciation and
amortization 284,583,466 114,919,758 64,926,060 3,641,946 468,071,230
expenses
Total profit 698,174,831 130,737,688 333,914,370 14,689,342 1,177,516,231
Income tax expenses 99,050,153 18,781,190 52,257,720 -1,163,539 168,925,524
Net profit 599,124,678 111,956,498 281,656,650 15,852,881 1,008,590,707
Total assets 11,258,772,055 3,727,213,216 3,285,363,409 4,199,829,096 22,471,177,776
Total liabilities 4,895,321,766 641,350,698 584,360,531 4,088,494,414 10,209,527,409
Increase in non
1,426,159,873 69,360,125 132,889,883 3,450,028 1,631,859,909
current assets
(3) Other statement
The Group’s revenue from external customers domestically and in foreign countries or geographical areas, and the total
non-current assets other than financial assets and deferred tax assets located domestically and in foreign countries or
geographical areas are as follows:
Revenue from external customers Jan.-Jun. 2022 Jan.-Jun. 2021
Mainland 6,019,026,588 5,993,997,205
Overseas 500,190,088 620,805,333
Total 6,519,216,676 6,614,802,538
Total non-current assets 30 June 2022 31 December 2021
Mainland 14,103,009,578 12,982,067,078
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2022
Hong Kong 12,376,080 12,403,499
Total 14,115,385,658 12,994,470,577
XVI. Notes to Financial Statements of the Parent Company
1.Accounts receivable
(1) Classified disclosure of accounts receivable
Unit: RMB
Ending book balance Beginning book balance
Book balance Bad debt provision Book balance Bad debt provision
Category book amoun amount Accrual book
amount of propor amount of Accrual propo
value t of of proporti value
money tion money proportion rtion
money money on
Accounts
receivable
for which
bad debt
reserves 2,037,007 100% 40,740 2% 1,996,267
are
withdrawn
by
portfolio
Total 2,037,007 100% 40,740 2% 1,996,267
Provision for bad debts by portfolio：
Unit: RMB
Ending book balance
Name
Book balance Bad debt provision Accrual proportion
Portfolio 1 2,037,007 40,740 2%
Total 2,037,007 40,740
Disclosed by aging
Unit: RMB
Aging Ending book balance
Within 1 year (including 1 year) 2,037,007
Total 2,037,007
(2)Bad debt reserves withdrawn, recovered or reversed in the current period
Provision for bad debts in the current period：
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2022
Unit: RMB
Amount of change in the current period
Beginning book
Category Collect or Ending balance
balance Provision Write off Others
reversal
Bad debt
reserves of
40,740 40,740
accounts
receivable
Total 40,740 40,740
(3)Top 5 of the closing balance of the accounts receivable collated according to the arrears party
Unit: RMB
Proportion in total closing
Ending balance of accounts Ending balance of bad debt
Unit name balance of accounts
receivable provision
receivable
Total accounts receivable of
2,037,007 100% 40,740
the top 5 in balance
Total 2,037,007 100%
2. Other receivables
Unit: RMB
Item Ending balance Book balance
Dividends receivable 250,000,000 250,000,000
Other receivables 2,374,297,723 2,649,091,405
Total 2,624,297,723 2,899,091,405
(1) Dividends receivable
1）Classification of dividends receivable
Unit: RMB
Item (or investee) Closing balance Opening balance
Dividends receivable from subsidiaries 250,000,000 250,000,000
Total 250,000,000 250,000,000
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2022
(2)Other receivables
1) Other accounts receivable classified by the nature of accounts
Unit: RMB
Nature of accounts Ending book balance Beginning book balance
Accounts receivable of related party 2,250,430,875 2,526,427,812
Others 175,252,620 174,005,021
Total 2,425,683,495 2,700,432,833
2）Withdrawal of bad debt provision
Unit: RMB
Phase I Phase II Phase III
Expected credit loss Expected credit loss
Expected credit for the entire for the entire
Bad debt provision Total
losses in the next 12 duration (no credit duration (credit
months impairment impairment
occurred) occurred)
Balance on1 January 2022 41,428 51,300,000 51,341,428
Balance on1 January 2022 in
current period
Provision for this period 44,344 44,344
Balance on 30 June 2022 85,772 51,300,000 51,385,772
3）Other receivables disclosed by aging
Unit: RMB
Aging Ending balance
Within 1 year (including 1 year) 2,253,443,341
1 to 2 years 1,036,498
2 to 3 years 98,190
More than 3 years 171,105,466
3 to 4 years 75,371
More than 5 years 171,030,095
Total 2,425,683,495
4) Provision for bad debts accrued, recovered or reversed in the current period
Provision for bad debts:
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2022
Unit: RMB
Opening Amount of change in the current period
Category Closing balance
balance Provision Collect or reversal Write-off Others
Provision for bad
51,341,428 44,344 51,385,772
debts by portfolio
Total 51,341,428 44,344 51,385,772
5）Top 5 of the closing balance of the other accounts receivable collated according to the arrears party
Unit: RMB
Proportion of the Closing
Nature of Closing total year end balance balance of
Name ofthecompany Aging
accounts balance of the accounts bad debt
receivable (%) provision
Dongguan CSG PV-tech Subsidiary 569,768,167 Within 1 year 23%
Qingyuan CSG Energy-saving Subsidiary 342,364,169 Within 1 year 14%
Shenzhen CSG Display Subsidiary 334,548,092 Within 1 year 14%
Xianning CSG Photoelectric Subsidiary 251,068,779 Within 1 year 10%
China Southern Glass (Hong Kong) Subsidiary 240,438,085 Within 1 year 10%
Total 1,738,187,292 71%
3. Long-term equity investment
Unit: RMB
Closing balance Opening balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Investment in
6,914,675,709 15,000,000 6,899,675,709 6,277,391,694 15,000,000 6,262,391,694
subsidiaries
Total 6,914,675,709 15,000,000 6,899,675,709 6,277,391,694 15,000,000 6,262,391,694
(1)Investment in subsidiaries
Unit: RMB
Increase and decrease in the current period Closing
Opening Closing balance of
Provision
Invested company balance Additional Reducing balance provision
for Others
(book value) investment investment (book value) for
impairment
impairment
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2022
Chengdu CSG Glass Co., Ltd. 151,397,763 151,397,763
Sichuan CSG Energy Conservation 119,256,949 119,256,949
Tianjin Energy Conservation Glass Co.,
247,833,327 247,833,327
Ltd.
Dongguan CSG Architectural Glass Co.,
198,276,242 198,276,242
Ltd.
Dongguan CSG Solar Glass Co., Ltd. 355,120,247 355,120,247
Yichang CSG Polysilicon Co., Ltd. 640,856,170 269,104,000 909,960,170
Wujiang CSG North-east Architectural
254,401,190 254,401,190
Glass Co., Ltd.
Hebei CSG Glass Co., Ltd. 266,189,705 266,189,705
China Southern Glass (Hong Kong)
87,767,304 87,767,304
Limited
Wujiang CSG Glass Co., Ltd. 567,645,430 567,645,430
Jiangyou CSG Mining Development Co.,
102,415,096 102,415,096
Ltd.
Xianning CSG Glass Co., Ltd. 181,116,277 181,116,277
Xianning CSG Energy Conservation
165,452,035 165,452,035
Glass Co., Ltd.
Qingyuan CSG Energy Saving New
885,273,105 885,273,105
Materials Co.,Ltd.
Shenzhen CSG Financial Leasing Co.,
133,500,000 133,500,000
Ltd.
Shenzhen Nanbo Display Technology
550,765,474 550,765,474
Co., Ltd.
Zhaoqing CSG Energy-Saving Glass Co.,
150,000,000 150,000,000
Ltd.
Zhaoqing CSG Automobile Glass Co.,
58,121,000 12,030,015 70,151,015
Ltd.
Dongguan CSG PV-tech Co., Ltd. 382,112,183 382,112,183
Anhui CSG New Energy Materials 455,000,000 255,000,000 710,000,000
Anhui CSG New Quartz material 37,000,000 38,000,000 75,000,000
Shenzhen CSG Medical 20,000,000 20,000,000
Anhui CSG Silicon Valley Mingdu Co.,
3,000,000 3,000,000
Ltd.
Xi'an CSG Energy Saving Co., Ltd. 1,000,000 21,150,000 22,150,000
Guangxi CSG New Energy Materials 1,000,000 17,000,000 18,000,000
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2022
Co., Ltd
CSG (Suzhou) Enterprise Headquarters
9,000,000 21,000,000 30,000,000
Management Co., Ltd
Yichang CSG New Energy Materials Co.,
1,000,000 1,000,000
Ltd
Hefei CSG Energy Saving Co., Ltd 3,000,000 3,000,000
Others 238,892,197 238,892,197 15,000,000
Total 6,262,391,694 637,284,015 6,899,675,709 15,000,000
4. Operating income and operating costs
Unit: RMB
Occurred in this term Occurred in previous term
Item
Income Costs Income Costs
Main business 15,479,200 15,015,892
Other business 214,719,212 42,342,857
Total 230,198,412 15,015,892 42,342,857
5.Investment income
Unit: RMB
Item Occurred in this term Occurred in previous term
Long-term equity investment accounted by cost method 648,961,128 715,020,699
Investment income of trading financial assets during the holding period 14,478,503 2,858,476
Fixed deposit income 1,935,192 596,467
Total 665,374,823 718,475,642
XVII.Supplementary Information
1. Items and amounts of extraordinary profit (gains)/loss
√Applicable □Not applicable
Unit: RMB
Item Amount Note
Gains/losses from the disposal of non-current asset (including the write-off that accrued
12,745,461
for impairment of assets)
Governmental subsidy reckoned into current gains/losses (not including the subsidy
enjoyed in quota or ration according to national standards, which are closely relevant to 97,547,070
enterprise’s business)
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2022
In addition to the effective hedging business related to the normal operation of the
company, gains and losses from changes in fair value arising from the holding of tradable
financial assets and tradable financial liabilities, and the acquisition of tradable financial 16,413,695
assets and available-for-sale financial assets from disposal of tradable financial assets
investment income
Reversal of impairment provision for receivables subject to independent impairment test 1,409,310
Other non-operating income and expenditure except for the aforementioned items 11,472,908
Less: Impact on income tax 23,294,919
Impact on minority shareholders’ equity (post-tax) 2,713,947
Total 113,579,578 --
Details of other profit and loss items that meet the definition of non recurring profit and loss：
□Applicable √Not applicable
The Company has no specific circumstances of other profit and loss items that meet the definition of non-recurring
profit and loss.
Explanation on defining the non-recurring profit and loss items listed in the "Explanatory Announcement No. 1 on
Information Disclosure of Companies Offering Securities to the Public - Non-recurring Profit and Loss" as recurring
profit and loss items
□Applicable √Not applicable
2. Return on net assets and earnings per share
The weighted Earnings per share
Profit in the report period average net Basic earnings per Diluted earnings per
assets ratio share (RMB/share) share (RMB/share)
Net profit attributable to ordinary shareholders of the Company 8.61% 0.33 0.33
Net profit attributable to ordinary shareholders of the Company after
7.64% 0.29 0.29
deducting non-recurring gains and losses
3. Difference of accounting data under domestic and overseas accounting standards
(1) Differences of the net profit and net assets disclosed in financial report prepared under international and
Chinese accounting standards
□ Applicable √ Not applicable
(2) Difference of the net profit and net assets disclosed in financial report prepared under overseas and Chinese
accounting standards
□ Applicable √ Not applicable
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CSG HOLDING CO., LTD. Financial Report of Semi-annual Report 2022
(3)Explanation of the reasons for the difference of accounting data under the domestic and foreign accounting
standards. If the data audited by the overseas audit institution is adjusted for the difference, the name of the
overseas institution shall be indicated
□ Applicable √ Not applicable
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