CSG HOLDING CO., LTD.
ANNUAL REPORT 2023
Chairman of the Board:
CHEN LIN
April 2024
Section I. Important Notice, Content and ParaphraseBoard of Directors and the Supervisory Committee of CSG Holding Co., Ltd. (hereinafter referred toas the Company) and its directors, supervisors and senior executives hereby confirm that there are noany fictitious statements, misleading statements, or important omissions carried in this report, andshall take individual and joint legal responsibilities for the facticity, accuracy and completeness ofthe whole contents.Ms. Chen Lin, Chairman of the Board, Ms. Wang Wenxin responsible person in charge of accountingand Ms. Wang Wenxin, principal of the financial department (accounting officer) confirm that theFinancial Report enclosed in this Annual Report 2023 is true, accurate and complete.All directors were present at the meeting of the Board for deliberating the annual report of theCompany in person.The future plans, development strategies and other forward-looking statements mentioned in thisreport do not constitute a material commitment of the Company to investors. Investors and relevantparties should pay attention to investment risks, and understand the differences between plans,forecasts and commitments.The Company has described the risk factors and countermeasures of the Company's futuredevelopment in detail in this report. Please refer to Section III. Management Discussion and Analysis.The Company is required to comply with the disclosure requirements of "Non metallic BuildingMaterials Related Business" in the "Self regulatory Guidelines for Listed Companies on the ShenzhenStock Exchange No. 3- Industry Information Disclosure (Revised in 2023)".The deliberated and approved plan of profit distribution in the Board Meeting is distributing cashdividend of RMB 2.5 yuan (tax included) for every 10 shares to all shareholders based on3,070,692,107 shares of the total current share capital,0 bonus shares (including tax) will be given,and no capital stock will be converted from provident fund. The actual amount of the cash dividenddistributed will be determined according to the total share capital on the registration date of theCompany's implementation of the profit distribution plan.This report is prepared both in Chinese and English. Should there be any inconsistency between theChinese and English versions, the Chinese version shall prevail.
Content
Section I. Important Notice, Content and Paraphrase .......................................................................... 1
Section II. Company Profile& Financial Highlights ............................................................................ 5
Section III. Management Discussion and Analysis .............................................................................. 9
Section IV. Corporate Governance .................................................................................................. 40
Section V. Environment and Social Responsibility ............................................................................ 58
Section VI. Important Events ............................................................................................................. 63
Section VII. Changes in Shares and Particulars about Shareholders ................................................. 86
Section VIII. Preferred shares ............................................................................................................ 93
Section IX. Bonds .............................................................................................................................. 93
Section X. Financial Report ............................................................................................................... 94
Documents Available for ReferenceI. Text of the financial report carrying the signatures and seals of the legal representative, responsible person in charge ofaccounting and person in charge of financial institution;
II. Original of the Auditors’ Report carrying the seal of accounting firm and the signatures and seals of the certified publicaccountants;
III. All texts of the Company’s documents and original public notices disclosed in the website and papers appointed byCSRC in the report period.
Paraphrase
| Items | Refers to | Contents |
| Company, the Company, CSG or the Group | Refers to | CSG Holding Co., Ltd. |
| Foresea Life | Refers to | Foresea Life Insurance Co., Ltd. |
| Ultra-thin electronic glass | Refers to | The electronic glass with thickness between 0.1~1.1mm |
| AG glass | Refers to | Anti-glare glass |
| AF glass | Refers to | Anti-fingerprint glass |
| AR glass | Refers to | Anti-reflection glass |
| Ice Kirin | Refers to | CSG’s brand for multi-silver high-performance energy-saving glass |
| BIPV | Refers to | Building Integrated Photovoltaic |
Section II. Company Profile& Financial HighlightsI. Company information
| Short form of the stock | Southern Glass A、Southern Glass B | Stock code | 000012、200012 |
| Listing stock exchange | Shenzhen Stock Exchange | ||
| Legal Chinese name of the Company | 中国南玻集团股份有限公司 | ||
| Abbr. of legal Chinese name of the Company | 南玻集团 | ||
| Legal English name of the Company | CSG Holding Co., Ltd. | ||
| Abbr. of legal English name of the Company | CSG | ||
| Legal Representative | Chen Lin | ||
| Registered Add. | CSG Building, No.1, the 6th Industrial Road, Shekou, Shenzhen, P. R.C. | ||
| Post Code | 518067 | ||
| Office Add. | CSG Building, No.1, the 6th Industrial Road, Shekou, Shenzhen, P. R.C. | ||
| Post Code | 518067 | ||
| Internet website | www.csgholding.com | ||
| securities@csgholding.com | |||
II. Person/Way to contact
| Secretary of the Board | Representative of security affairs | |
| Name | Chen Chunyan | Xu Lei |
| Contacts add. | CSG Building, No.1 of the 6th Industrial Road, Shekou, Shenzhen, P. R.C. | CSG Building, No.1 of the 6th Industrial Road, Shekou, Shenzhen, P. R.C. |
| Tel. | (86)755-26860666 | (86)755-26860666 |
| Fax. | (86)755-26860685 | (86)755-26860685 |
| securities@csgholding.com | securities@csgholding.com |
III. Information disclosure and preparation place
| The website of the stock exchange where the company discloses the annual report | www.szse.cn |
| The name and website of the media where the company discloses the annual report | Securities Times, China Securities Journal, Shanghai Securities News, Securities Daily and Juchao Website (www.cninfo.com.cn) |
| The place for preparation of the annual report | Office of the Board of Directors of the Company |
IV. Registration changes of the Company
| Unified social credit code: | 914403006188385775 |
| Changes of main business since listing (if | No changes |
| applicable) | |
| Previous changes for controlling shareholders (if applicable) | No changes |
V. Other relevant information
CPA firm engaged by the Company
| Name of CPA firm | Grant Thornton Zhitong Certified Public Accountants LLP |
| Offices add. for CPA firm | 5th Floor, Saite Plaza, 22 Jianguomenwai Street, Chaoyang District, Beijing |
| Signing Accountants | Su Yang, Yang Hua |
Sponsor institute engaged by the Company for performing continuous supervision duties in the report period
□ Applicable √ Not applicable
Financial consultant engaged by the Company for performing continuous supervision duties in the report period
□ Applicable √ Not applicable
VI. Main accounting data and financial indexesWhether it has retroactive adjustment or restatement on previous accounting data
□Yes √No
| 2023 | 2022 | Changes over the previous year | 2021 | |
| Operating income (RMB) | 18,194,864,366 | 15,198,706,998 | 19.71% | 13,672,372,823 |
| Net profit attributable to shareholders of the listed company (RMB) | 1,655,614,446 | 2,037,202,500 | -18.73% | 1,526,392,754 |
| Net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses (RMB) | 1,535,858,783 | 1,819,429,258 | -15.59% | 1,436,603,707 |
| Net cash flow arising from operating activities (RMB) | 2,759,788,894 | 1,957,123,231 | 41.01% | 3,899,648,030 |
| Basic earnings per share (RMB/Share) | 0.54 | 0.66 | -18.18% | 0.50 |
| Diluted earnings per share (RMB/Share) | 0.54 | 0.66 | -18.18% | 0.50 |
| Weighted average ROE | 12.30% | 16.78% | -4.48% | 14.11% |
| As at 31 Dec. 2023 | As at 31 Dec. 2022 | Changes over the end of the previous year | As at 31 Dec. 2021 | |
| Total assets (RMB) | 30,362,057,312 | 25,904,013,306 | 17.21% | 19,935,902,125 |
| Net assets attributable to shareholders of the listed company (RMB) | 14,050,840,217 | 12,854,883,706 | 9.30% | 11,426,724,496 |
The lower of the Company’s net profit before and after the deduction of non-recurring gains and losses in the last threefiscal years is negative, and the auditor's report of the previous year shows that the Company’s going concern ability isuncertain
□ Yes √ No
The lower of the net profit before and after the deduction of the non-recurring gains and losses is negative
□ Yes √ No
VII. Accounting Data Differences under and Foreign Accounting Standards
1. Net Income and Equity Differences under CAS and IFRS
□ Applicable √ Not applicable
No such differences for the Report Period.
2. Net Income and Equity Differences under CAS and Foreign Accounting Standards
□ Applicable √ Not applicable
No such differences for the Report Period.
VIII. Main financial indexes by quarter
Unit: RMB
| Q1 | Q2 | Q3 | Q4 | |
| Operating income | 4,070,673,784 | 4,318,666,461 | 5,090,592,927 | 4,714,931,194 |
| Net profit attributable to shareholders of the listed company | 396,406,087 | 493,072,693 | 577,193,230 | 188,942,436 |
| Net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses | 369,241,752 | 468,997,016 | 538,045,199 | 159,574,816 |
| Net cash flow arising from operating activities | -284,407,179 | 802,834,364 | 1,105,819,087 | 1,135,542,622 |
Whether there are significant differences between the above-mentioned financial index or its total number and the relevantfinancial index disclosed in the Company’s quarterly report and semi-annual report or not
□Yes √ No
IX. Items and amounts of non-recurring gains and losses
√Applicable □ Not applicable
Unit: RMB
| Item | 2023 | 2022 | 2021 | Note |
| Gains/losses from the disposal of non-current asset (including the write-off that accrued for impairment of assets) | -9,628,136 | 15,213,059 | -1,493,248 | |
| Government subsidies included in the profit and loss of the current period (closely related to the normal operation of the company, in line with national policies and provisions, in accordance with the defined standards, except government subsidies that have a continuous impact on the profit and loss of the company) | 118,358,356 | 188,756,525 | 104,507,242 | |
| In addition to the effective hedging business related to the normal operation of the company, the profit or loss of fair value changes arising from the holding of financial assets and financial liabilities by non-financial enterprises and the loss or gain arising from the disposal of financial assets and financial liabilities and available for sale financial assets | 3,106,870 | 31,567,854 | 17,132,672 | |
| Reversal of provision for impairment of receivables that have been individually tested for impairment | 8,757,040 | 6,389,385 | 1,429,653 |
| Profit and loss from debt restructuring | 4,908,612 | 0 | -285,025 | |
| Other non-operating income and expenditure except for the aforementioned items | 18,833,212 | 14,743,778 | -13,526,210 | |
| Less: Impact on income tax | 21,244,208 | 34,242,061 | 14,201,899 | |
| Impact on minority shareholders’ equity (post-tax) | 3,336,083 | 4,655,298 | 3,774,138 | |
| Total | 119,755,663 | 217,773,242 | 89,789,047 | -- |
Particulars about other gains and losses that meet the definition of non-recurring gains and losses:
□ Applicable √ Not applicable
It did not exist that other profit and loss items met the definition of non-recurring gains and losses.Explanation of the non-recurring gains and losses listed in the Explanatory Announcement No.1 on InformationDisclosure for Companies Offering their Securities to the Public - Non-recurring Gains and Losses as recurring gains andlosses
□ Applicable √ Not applicable
It did not exist that non-recurring profit and loss items listed in the "Explanatory Announcement No. 1 on InformationDisclosure of Companies Offering Securities to the Public - Non-recurring Profit and Loss" were defined as recurringprofit and loss items in the report period.
Section III. Management Discussion and Analysis
I. Particulars about the industry the Company engages in during the report periodPhotovoltaic glass industryIn 2023, with the continuous expansion of the global photovoltaic market, the scale of the photovoltaic industry and thegrowth rate of installed capacity were increasing. Driven by the growth in the installed capacity of photovoltaic modulesand the increasing penetration rate of double-glass modules, the demand for photovoltaic glass has been growing,prompting enterprises to ramp up production. With the release of new capacity, the photovoltaic glass market hasexperienced an increase in quantity but a decrease in price. This, coupled with the rising prices of various raw materials,fuels and labour costs, resulted in robust demand, rising costs and low selling prices in the industry.Architectural glass industryThe architectural glass business is to further process the original float glass sheet to manufacture energy-saving buildingglass products with both safety and aesthetic effects in order to improve the energy-saving and safety performance ofbuildings, as well as the visual aesthetic effects. Building energy-saving glass has made a significant contribution toenergy saving in the process of building use. The penetration rate in developed countries in Europe and the United Stateshas already exceeded 80%, but the overall penetration rate in China is still low. The total number of buildings in China ishuge. In order to cope with the pressure of global warming, to achieve the goals of “Carbon Peaking in 2030 and CarbonNeutrality in 2060”, and to reduce building energy consumption and carbon emissions, it is imperative to reduce theenergy consumption and carbon emissions of buildings, to vigorously develop green buildings, and to carry out energy-saving renovation of existing buildings. According to the Action Plan for the Establishment of Green Buildings issued bythe Ministry of Housing and Urban-Rural Development and the Ministry of Industry and Information Technology, as wellas the national Action Plan for Carbon Peaking Before 2030, Comprehensive Work Plan for Energy Conservation andEmission Reduction during the 14th Five-Year Plan, and other guidance documents’ requirements, 100% of the newly-built urban building should meet the green building standards in 2025 (about 50% in 2020). It is expected that thearchitectural glass business will gain significant development opportunities during the “14th Five-Year Plan” period. Inaddition, with the gradual improvement of domestic social consumption level in recent years, building energyconservation, safety standards, and quality requirements have been continuously improved. In practice, the bad practiceof winning the bid by the lowest price for construction projects has been initially reversed, and the quality and influenceof “Made in China” have been increasingly recognized around the world, which will bring broader development space toadvantageous enterprises that attach importance to product quality and technological innovation, as well as stableindustrial chain and supply chain.Float glass industryIn 2023, the float glass industry experienced a rebound in demand from downstream markets, buoyed by policies such as"guarantee of timely delivery of housing projects", which led to an improved supply-demand structure and capacityexpansion in the industry. According to statistics from third-party industry information agencies, by the end of 2023, therehad been a total of 255 float glass production lines operating nationwide, with a combined daily melting capacity ofapproximately 173,000 tons, marking a 6.84% year-on-year increase.Float glass traditionally finds its main application in building materials, and its demand trends positively correlate withinfrastructure investments and the overall prosperity of the real estate sector. Statistics released by the National Bureauof Statistics indicate a 20.4% year-on-year decrease in new housing construction area and a 17.0% increase in completion
area in 2023. Driven by the "guarantee of timely delivery of housing projects" policy, the pace of real estate completionshas accelerated, stimulating the release of pent-up demand in existing markets, thereby boosting the total demand for floatglass in the current period. However, various indicators such as the new construction area and sales area have shown signsof softening, reflecting shifts in the real estate market's supply-demand relationship and increasing uncertainties inforward market demand. Consequently, the float glass market is expected to undergo cyclical adjustments. Based on ananalysis of the market demand structure, the ongoing implementation of the national "dual carbon" policy in recent yearshas led to a steady rise in the proportion of green buildings, resulting in a significant increase in the proportion of energy-saving glass. Simultaneously, as economic growth continues and living standards improve, there is a sustained uptick indemand for high-quality products such as ultra-white float glass. These adjustments to the product demand structure,coupled with the rising demand for high-quality products, bode well for industry-leading companies operating in the high-end market.Electronic glass and display industryElectronic glass, with its unique performance advantages such as high transmittance, high strength in ultra-thin state,reliable and stable weather resistance, and processing convenience, is an indispensable material for cover glass and touchcontrol plate of intelligent display interactive application terminals such as smartphones, tablets, and computers. And itis developing rapidly with the intelligent interactive display industry. With the popularization of information andcommunication technologies such as 5G and the development of the mobile Internet, the production and lifestyle of humansociety are gradually developing into a new form of high integration of people, machines, things, and information, inwhich everything is interconnected, driving the demand for intelligent equipment to increase rapidly and significantly. Inrecent years, in addition to the rapid popularization of mobile Internet terminals such as smartphones, tablets, andcomputers, the vigorous development of smart homes, new energy vehicles, smart factories, smart business displays,advanced education, medical care, conferences, self-service, and other industries has brought about the incrementaldemand for human-computer interaction equipment, which provides a broader market prospect and market space for theelectronic glass industry, and also provides a market opportunity for leapfrogging development to upstream materialmanufacturers with leading technological innovation capability and benign operation.Against a backdrop of global economic deceleration, the consumer electronics market has faced widespread sluggishnessin recent years. According to the latest research report released by an industry research institution in February 2024, theglobal shipment volume of smartphones in 2023 totalled 1.14 billion units, marking a 5.8% year-on-year decline.Projections indicate that the shipment volume will remain stable in 2024, and the global smartphone market still facescertain challenges.Solar energy industryThe photovoltaic new energy industry is a strategic emerging industry in China, acting as an essential guarantee for thecountry to realize energy safety and green development. After over twenty years of development, the industrial positionhas developed from clean energy to “the most economical” energy today. Driven by the global climate environmentrequirements of “carbon peaking and carbon neutrality”, photovoltaic power generation will progressively become themainstay of the energy structure. Solar energy, boasting remarkable advantages such as cleanliness, safety, andinexhaustibility, presents boundless prospects for development.In 2023, China's photovoltaic industry witnessed accelerated innovation and integration, driving further expansion in theindustry scale. According to statistics from the China Photovoltaic Industry Association, the outputs of high-puritycrystalline silicon, silicon wafers, solar cells, and modules hit record highs. The industry's total output value exceededRMB 1.7 trillion, marking impressive year-on-year growth rates of 66.9%, 67.5%, 64.9%, and 69.3%, respectively.Throughout the year, major photovoltaic products experienced noticeable price declines, leading to an overall trend of"an increase in quantity but a decrease in price" in exports.
II. Main business of the Company during the report period
CSG is a leading domestic brand of energy-saving glass and a renowned brand of solar PV products and display devices.Its products and technologies are well-known at home and abroad. Its main business includes R&D, manufacturing andsales of high-quality float glass, architectural glass, photovoltaic glass, new materials and information display productssuch as ultra-thin electronic glass and display devices, as well as renewable energy products such as silicon materials,photovoltaic cells and modules, and it provides one-stop services for photovoltaic power station project development,construction, operation and maintenance, etc. The Company owns quartz sand raw material processing and productionbases in Jiangyou, Sichuan; Qingyuan, Guangdong; Fengyang, Anhui; and Beihai, Guangxi (currently under construction),which ensure a steady supply of raw materials for the Company's glass production.Photovoltaic glass businessIn the field of photovoltaic glass, the Company took the lead in entering the field of photovoltaic glass manufacturing inChina in 2005. Based on independent research and development, the Company has formed a full closed-loop productioncapacity from photovoltaic glass original sheet production to deep processing. As at the end of 2023, the Company hasseven photovoltaic rolled glass original sheet production kilns and complementary photovoltaic glass deep processingproduction lines in Dongguan, Wujiang, Fengyang and Xianning, and its products cover deep-processing products witha variety of thicknesses of 1.6-4 mm.In the era of carbon peaking and carbon neutrality, the Company is optimistic about the long-term development of thephotovoltaic new energy industry. Seizing the opportune moment for industrial development, the Company has leveragedthe national "14th Five-Year Plan" and its own strategic development plan to address weak spots in the capacity and scalelayout of the Group's photovoltaic glass business. By the end of 2023, five new photovoltaic glass production kilns andcomplementary processing lines in Fengyang and Xianning had been put into commercial operation. Coupled with theexisting production kilns and complementary processing lines in Dongguan and Wujiang, the Company now boasts atotal of seven photovoltaic rolled glass original sheet production kilns along with complementary photovoltaic glass deepprocessing production lines in operation. The construction of two new photovoltaic glass production kilns andcomplementary processing lines in Beihai is progressing as planned, with one kiln already ignited at the end of March2024 and the other slated for ignition within the same year. With nearly two decades of experience in photovoltaic glassproduction, CSG has amassed a robust foundation in key equipment and technologies such as kilns, calendering, and deepprocessing, which have been significantly showcased in the current round of capacity expansion of the Company'sphotovoltaic glass business. As of the end of 2023, the Company had ascended to a leading position in the industry interms of photovoltaic glass capacity, establishing photovoltaic glass as a new pivotal business segment for the Company.At present, the photovoltaic industry is experiencing rapid growth. According to the current policy environment andmarket trends, the future of photovoltaic power generation holds vast development opportunities. The centralised releaseof newly expanded photovoltaic glass capacity may lead to a temporary supply-demand mismatch, resulting in marketprice fluctuations. Nevertheless, the industry is expected to regain its footing on a path towards healthy growth, drivenby the rapid expansion of the global market, the optimisation of domestic industrial structures, and the influence of therisk early warning mechanism. The Company will make every effort to ensure that its construction projects will be putinto operation as scheduled, bolster its production capacity in large-size ultra-thin photovoltaic glass, and enhance itscompetitive edge in the industry. Additionally, long-term strategic partnerships with leading industry players will beenhanced to further boost the Company's competitiveness in the photovoltaic glass market.Architectural glass businessAs one of the largest high-end building energy-saving glass suppliers in China, CSG integrates R&D and design, technicalconsulting, production and manufacturing, and marketing and service in the architectural glass business. It always aims
to “build green energy-saving products and create quality life” and forms a CSG brand image with quality, service andcontinuous R&D as its core competitiveness, which is strongly competitive in foreign markets as well.Currently, the Company has seven deep processing bases of energy-saving glass in Tianjin, Dongguan, Xianning,Wujiang, Chengdu, Zhaoqing, and Xi’an. With the completion of the two bases in South China and the one in NorthwestChina, the Company’s base layout across China has been further optimised. Meanwhile, with the clear direction ofintelligent and digital transformation, the product diversification and capacity scale of coated insulating glass and coatedglass will see continuous and steady growth, which will serve as an adequate guarantee for the comprehensive and steadyimprovement of product competitiveness, market share and service.CSG’s architectural glass business adheres to the customized business strategy of trinity of technical service, marketing,R&D and manufacturing, relying on its own manufacturing and R&D strength, as well as the marketing and servicenetwork formed by domestic and overseas offices, to meet the personalized needs of domestic and foreign customers andconstruction projects. In 2017, CSG’s low-E coated glass was awarded the title of Single Champion Product by theMinistry of Industry and Information Technology, and it passed the review again in March 2024, which fully proves theleading position of CSG’s architectural glass in the industry. The Company has the world’s leading glass deep processingequipment and testing equipment, and its products cover all kinds of architectural and construction glass. The R&D andapplication level of the Company’s coating technology keeps pace with the world, and its high-end product technology isinternationally leading. Following the double silver coated glass products, the Company has successively developed “IceKirin” high-performance energy-saving glass and multi-function energy-saving glass products featuring further improvedsunshade and heat insulation performance and energy-saving contribution. All deep processing bases of the Company areable to produce and process “Ice Kirin” high-performance energy-saving glass. Under the background of the “dual carbon”goals and the national green and energy-saving building requirements, the market demand for “Ice Kirin” glass has furtherexpanded. After years of market testing and relying on the Company’s advanced coating technology, its high performanceand stability have been well received by the market, CSG’s “Ice Kirin” products have become a benchmark in the domesticmarket, and high-quality, energy-saving, environmentally friendly LOW-E insulating glass continues to lead the domestichigh-end market share. The Company has always adhered to the intelligent transformation and digital transformation asthe key increment of the development of architectural glass business. It has continuously invested and accumulated richexperience in the research of production automation, intellectualization, information technology and equipment, and theefficiency improvement of intelligent upgrading and transformation of traditional equipment. With technological progressand process optimization, the Company has reduced production manpower consumption, material consumption andenergy consumption, actively promoting the Company’s transformation and upgrading to achieve intensivemanufacturing and high-quality development.The Company’s quality management system for engineering and architectural glass has been respectively approved byorganizations of UK AOQC and Australia QAS. The product quality which meets the national standards of the US, theUK and Australia enables CSG has an advantage in the international tendering and bidding. Since 1988, CSG’s engineersand technicians have been continuously participating in the formulation and compilation of various national standardsand industry standards. All kinds of high-quality engineering architectural glass provided by the Company are widelyused in landmark buildings such as major city CBDs and transportation hubs at home and abroad, which are too numerousto mention. In 2023, the Company was shortlisted for multiple landmark projects for its unwavering commitment to safety,energy conservation, and high quality. These projects include China Merchants Bank Global Headquarters Complex,VIVO's R&D centre, the Industry Cluster Centre of the China-Singapore Guangzhou Knowledge City, NationalConvention and Exhibition Center, Xiaomi Future Industrial Park, China Huaneng Headquarters, Hong Kong Kai TakHospital, One Circular Quay in Australia, Jeddah Tower in Saudi Arabia, and MERDEKA PNB 118 in Kuala Lumpur,and many other domestic and foreign buildings in the Middle East, America, Europe, Australia, Southeast Asia, and otherplaces.
Float glass businessIn the field of float glass, CSG has 10 advanced float glass production lines in Dongguan, Chengdu, Langfang, Wujiangand Xianning. Its products that cover high-quality float glass and ultra-white float glass with various thicknesses andspecifications of 1.6-25 mm are trusted by customers because of their quality. In CSG’s float glass portfolio, theproportion of differentiated glass products with special specifications and special application scenarios such as ultra-white,ultra-thin, and ultra-thick is large, which are widely used in high-end building curtain walls, decoration and furniture,mirrors, car windshields, scanners and copiers, home appliance panels, display protection and other application fieldswith high requirements on glass quality. CSG has established long-term and stable business cooperation with many well-known processing enterprises. In terms of the float glass business, CSG is committed to a high-end, differentiated productstrategy, actively responding to the new national standard for flat glass implemented in August 2023, to strive for high-quality development.The profit level of the float glass business is generally positively correlated with the level of real estate new constructionand completion data, and is also affected by multiple factors such as current energy and raw material prices, productstructure, and enterprise management level. Differentiated glass products have higher added value due to specificapplication scenarios, higher production process difficulties, stable demand, and relatively proactive pricing bymanufacturers. To adapt to changes in the market, the Company focuses on improving management efficiency, improvingthe level of lean production of conventional products, firmly implementing the differentiated competition strategy,carefully cultivating and developing differentiated product markets, and continuously increasing the proportion of high-value-added product sales, such as ultra-white products, so as to continuously consolidate and enhance the industrycompetitiveness of the Company’s float glass business.Thanks to national policies such as the "guarantee of timely delivery of housing projects", the overall completion area in2023 saw an increase compared to the previous year, with market demand improving in the latter half of the year. Underthe macro background of “Steady Growth” of the national economy and the realization of “dual carbon” goals at present,customers in the downstream market are pursuing higher-quality products, and the demand for differentiated productsand energy-saving products remains stable.Electronic glass and display businessAfter more than a decade of hard work, CSG’s electronic glass business has always focused on increasing investment inR&D, breaking through high-end market barriers with independent intellectual property rights and independentinnovation, and firmly following the development route of product upgrades and iterations to accelerate importsubstitution. In 2023, the Company’s electronic glass business continued to develop. Its four subsidiaries, Hebei Panel,Yichang Photoelectric, Qingyuan New Energy-Saving Materials and Xianning Photoelectric, continued to activelyimplement further market expansion and product upgrading in the application fields of intelligent electronic terminals,touch components, vehicle window glass, vehicle-mounted display, industrial control and commercial display, and smarthome. Therefore, the market share and brand influence of the Company’s medium-alumina and high-alumina electronicglass products were improved steadily. Rich product structure, reliable delivery guarantee and strong technical innovationhelp the Company’s electronic glass business maintain its dominant position in the fierce market competition. In 2023,the Company continued to promote product technology upgrading. At present, CSG electronic glass has fully coveredelectronic glass products in high, medium and low-end application scenarios and established a more solid marketcompetition foundation. CSG has long been committed to becoming the industry’s leading electronic glass materialsolution provider, and it will continue to develop glass-based protective materials with higher strength andcompetitiveness in the field of touch display, develop human-computer interaction interface materials meeting therequirements of material interconnection in the fields of smart home, vehicle display, advanced medical, new-energyvehicles, etc., and develop new application materials in the fields of new-energy vehicles.
In the touch display field, CSG has formed a complete touch industry chain from vacuum magnetron sputtering coating,3A (AG, AR, and AF) cover plate processing and fine pattern lithography processing, to touch display modules. The mainbusiness includes optical coating materials, vehicle-mounted cover plates and vehicle-mounted touch panels. Amongthem, the optical coating material segment includes the two business types of ITO conductive glass and ITO conductivefilm, and the products are positioned at middle and high-end customers at home and abroad and are concentrated indifferentiated high-value-added ones. The vehicle-mounted cover plate business segment comprises a variety of products,including vehicle-mounted AG glass, vehicle-mounted 2A (AR and AF) cover plates, vehicle-mounted 3A cover plates,and customised cover plates of special functions. These products are supplied indirectly to renowned domestic andinternational automotive brands through downstream customers of vehicle-mounted device manufacturers.Solar energy businessCSG is one of the enterprises that firstly enter the field of photovoltaic product manufacturing in China. After more thanten years of construction, operation, technological transformation and upgrading, CSG has created a complete industrialchain covering the investment and operation of high-purity crystalline silicon materials, silicon wafers, solar cells,modules and photovoltaic power stations. The business structure of the entire industry chain enables the Company to havea certain ability to resist risks, be sensitive to the industry, and be able to respond quickly to market changes in the industry.After years of technological accumulation in the photovoltaic business, CSG has built three national-level scientificresearch and technology platforms: the “National and Local Joint Engineering Laboratory for Semiconductor SiliconMaterial Preparation Technology” recognized by the National Development and Reform Commission, “NationalEnterprise Technology Centre” and “CNAS Accredited Laboratory”; and seven provincial-level scientific research andtechnology platforms: “Hubei Semiconductor Silicon Preparation Technology Project Laboratory” and “Hubei EnterpriseTechnology Centre” recognized by the Hubei Provincial Development and Reform Commission, “Hubei Silicon MaterialEngineering Technology Research Centre” recognized by the Department of Science and Technology of Hubei Province,“Hubei Semiconductor Silicon Material Technology International Cooperation Base”, “Hubei Silicon MaterialEnterprise-School Joint Innovation Centre”, “Guangdong Solar Photovoltaic Cell and Component EngineeringTechnology Research Centre” and “Guangdong Enterprise Technology Centre”.In 2023, facing a highly certain future for the photovoltaic industry, companies and investors both within and outside theindustry increased their investments and arrangements. This led to temporary excess capacity across various processes ofthe industry chain, resulting in a fluctuating price downturn in the photovoltaic industry throughout the year. Subsidiariesunder CSG diligently implemented strategic decisions and arrangements made by the Group's management. The Yichangbase steadfastly transitioned to low-energy-consuming products, leveraging the unique characteristics of high-puritycrystalline silicon fixtures and production factors to enhance its market competitiveness continuously. The Dongguanbase pursued a path of product differentiation tailored to its own circumstances, yielding positive outcomes. Theconstruction of the 50,000 tons/year high-purity crystalline silicon project in the Qinghai base progressed as scheduled.After shifting into operation, it will further expand the Group's solar energy business, boosting overall competitiveness.III. Core Competitiveness AnalysisCSG, one of the most competitive and influential large-scale enterprises in China's glass industry and new energy industry,is committed to the development of energy conservation renewable, and new material industry. After four decades ofdevelopment and accumulation, the Company has gradually formed a comprehensive competitive advantage in terms ofproducts and brands, technology research and development, industrial chain and layout, talent team, and greendevelopment.
1. Product and brand advantages
"CSG" is a famous brand of domestic energy-saving glass, ultra-thin electronic glass, display and solar photovoltaicproducts. Its products and technology are well-known at home and abroad. The trademarks "南玻" and "SG" held by theCompany are both "Famous Trademark of China". The Company has been listed in the "Top 50 Building MaterialsEnterprises in China" and "Preferred Brand of Architectural Glass" in Door and Window Curtain Wall Industry for manyyears. In 2018, "CSG" brand was recognized by the United Nations Industrial Development Organization as the fourthbatch of "International Reputation Brand". CSG’s low-E coated glass and ultra-thin electronic glass were awarded thetitle of Single Champion Product by the Ministry of Industry and Information Technology, and it is the only manufacturerin the domestic glass industry that has two single champion products at the same time. The Company was awarded thetitle of "Outstanding Green Manufacturing Enterprise" in the building materials industry of Guangdong Province for theperiod of 2018-2022, and the title of “Shenzhen Top 500 Enterprises for 2023” (ranking No. 94).
2. Technology research and development advantages
The Company has always valued technological R&D and adopted independent R&D as its foundation since itsestablishment. As of December 31, 2023, the Company has had a total of 22 national high-tech enterprises, 2 national-level single champion products in the manufacturing industry, 1 national-level engineering laboratory, 1 national-levelenterprise technology centre, 5 national enterprises with intellectual property advantages, 1 national intellectual propertydemonstration enterprise, 6 national-level specialized, sophisticated, distinctive, and innovative enterprises (“LittleGiants”), 2 provincial-level expert workstation, 1 provincial-level doctoral workstation, 13 provincial-level enterprisetechnology centres, 6 provincial-level engineering technology research centres, 2 provincial-level engineering researchcentres, 4 provincial-level demonstration enterprises for intellectual property construction, 1 provincial-level intellectualproperty demonstration enterprise, 7 provincial-level “Little Giants”, 1 provincial-level government quality award, 10provincial-level scientific and technological progress awards, and 4 provincial-level patent awards. As of December 31,2023, the Company has applied for a total of 3,035 patents, including 1,275 invention patents, 1,747 utility model patents,and 13 design patents. Moreover, the Company has had a total of 2,212 authorized patents, including 465 invention patents,1,734 utility model patents, and 13 design patents.
3. Industrial chain and layout advantages
The Company has three complete industrial chains of energy-saving glass, electronic glass and display, and solarphotovoltaic glass. With the continuous improvement of the technological level of each process of the industrial chains,the Company’s industrial advantage becomes obvious; meanwhile, the Company possesses a complete industry layout,with production bases located in South China, North China, East China, Southwest China, Central China, and NorthwestChina.
4. Talent team advantages
The Company’s advantage in talent teams is mainly reflected in two aspects: On the one hand, the Company hasestablished a strong R&D team and a powerful R&D system. Through the construction of the core technical team,continuous R&D investment, and abundant technical reserves, it has constituted an important technology and innovationsupport for the Company’s strategies. Meanwhile, it has established Industry-University-Research cooperation, activelycooperating with domestic colleges and universities which are in advantage in silicate materials industry, to acceleratethe transformation of scientific research results, and to strengthen basic research; on the other hand, an excellent andstable management team is one of the most fundamental guarantees for the Company’s rapid and stable development.The Company has formed a good echelon training mechanism for professional managers. At present, the Company’ssenior management team has comparative advantages in multiple aspects, such as academic background, professionalquality, knowledge base, management philosophy and experience.
5. Green development advantages
With the continuous impetus of the “dual carbon” goals, the Company has taken active actions in various carbon-relatedfields. For example, the Company has widely conducted professional training on carbon emission management to improve
the ability of relevant personnel to better cope with carbon-related affairs. Meanwhile, the Company has activelypromoted through-life carbon footprint certification for relevant products as a preparation for downstream marketexpansion of green and low-carbon products. Furthermore, Hebei CSG Glass Co., Ltd., a subsidiary of the Company andan outstanding and benchmark enterprise in the flat glass industry, recognized as a pilot enterprise for carbon peaking inthe construction material industry, has made efforts to explore and implement the action plans and effective routes ofcarbon peaking in the industry. The relevant subsidiary of the Company has actively gotten involved in the regional pilotmarket of carbon transactions to strive for a calculation method of carbon quota matching the real situation of theCompany’s production. In 2023, it was included in the emission control list, with its total emissions highly consistentwith the quotas. As a pioneer of green development in the industry, the Company has 9 subsidiaries being honoured asnational "Green Factories", winning itself abundant room for development.IV. Main business business analysis
1. Overview
The year 2023 saw a slow recovery in the global economy due to a combination of factors. According to the data releasedby the National Bureau of statistics, China’s national economy picked up in 2023. The GDP totalled RMB 126.06 trillion,increasing by 5.2% year-on-year, the investment in fixed assets (excluding farmers) totalled RMB 50.30 trillion,increasing by 3.0% year-on-year, the investment in real estate development totalled RMB 11.09 trillion, decreasing by
9.6% year-on-year, and the floor space of buildings completed was 998 million square meters, increasing by 17.0% year-on-year.Facing the complicated political and economic environments at home and abroad, as well as the increasing pressure ofmarket competition, CSG, under the correct leadership of the Board of Directors, adopts the goal of becoming a world-class enterprise, and firmly takes the road of high-quality development. By continuously implementing differentiatedoperation, constantly improving its capacity of lean production and intelligent manufacturing, actively promoting projectconstruction, optimizing its industrial layout, and consolidating resource reserves, the Company further strengthens itscore competitiveness.In 2023, the Company’s revenue totalled RMB 18.195 billion, increasing by 20% year-on-year, and its net profit reachedRMB 1.546 billion, decreasing by 24% year-on-year; meanwhile, the Company’s net profit attributable to shareholdersof the listed company was RMB 1.656 billion, decreasing by 19% year-on-year.I. Operation of each industry of the GroupIn recent years, CSG has continuously promoted business optimisation, strengthened its competitive advantage intraditional energy-saving construction materials, and accelerated the development of its new energy and new materialindustrial sectors. The Company’s advantage in the diversified industry layout became prominent in 2023, the strongsupport of its photovoltaic glass business, architectural glass business and float glass business effectively diluting theimpact of cyclical fluctuations in the solar energy business.Glass business segmentPhotovoltaic glass: The Company upholds the "quality first, service foremost" principle, leveraging its expertise inprocesses and technologies to enhance the quality and overall manufacturing yield of photovoltaic glass products, thussecuring a competitive edge in the industry. The Company is firmly optimistic about the long-term development of thephotovoltaic new energy industry. It continues to expand its capacity and upgrades existing kiln technologies whileensuring consistent quality. The first kiln for the photovoltaic glass construction project in Beihai, Guangxi, was ignitedat the end of March 2024, and the second kiln is expected to be ignited within the same year. Additionally, the upgradeproject for the photovoltaic line in Wujiang is scheduled for ignition by the end of 2024. Upon completion of these projects,
the annual capacity for photovoltaic glass will see a significant increase, optimising production costs and demonstratingfurther economies of scale. This lays a robust foundation for expanding market share, scaling up operations, and fosteringthe high-quality development of the photovoltaic glass business.Architectural glass: As the golden brand of CSG, the Company’s architectural glass business has been equipped withquality, service and continuous R&D capabilities that match the brand. Focusing on the continuous improvement of thebuilding energy-saving standards and high-rise building safety standards, the Company strengthens brand building andadheres to the customized business strategy integrating technical service, marketing, and R&D and manufacturing, tomeet the personalized needs of domestic and foreign customers and construction projects. As the Company’s share in thedomestic high-end construction market continues to rise, it also maintains a leading position in market scale andprofitability in the field of deep processing within the same industry.In 2023, despite affected by domestic and international environmental factors continuously, the pressure of sales anddelivery increased year-on-year, coupled with increased financing and payment pressure from domestic real estateenterprises, as well as higher risk control requirements by the Company, the operation of architectural glass remainedstable. By refining the market layout, the Company continued to increase the signing of high-quality projects, whichresulted in the drastic year-on-year increase of the order compounding degree. Meanwhile, it launched the band of “IceKirin” and gradually increased the proportion of “Ice Kirin” and other high-end products. It also enhanced cooperation insupport projects for people’s livelihood, promoted digital transformation across all the production bases, continued tostrengthen “Reduce Costs and Increase Efficiency” and lean operation.Meanwhile, focusing on the future, the Company seizes the historic opportunity of the acceleration of green buildingconstruction. With the completion of the layout of production capacity optimization and production expansion for allbases of architectural glass, as well as the construction of new bases, the Company improves the automation andinformatization level of its production lines, continuously improving the production efficiency of equipment. CSG’sproduction capacity for architectural glass is further released. This, in combination with the Company’s productdiversification to conform with the market demand, can lead to the continuous improvement of the market competitivenessand service capability of CSG regarding architectural glass, so as to increase the market share of its architectural glassbusiness.The national standard General Code for Building Energy Efficiency and Renewable Energy Utilization (GB55015-2021),implemented in April 2022, mandates a 30% reduction in the average design energy consumption for newly constructedresidential buildings and a 20% reduction for public buildings. As the “14th Five-Year Plan” has proposed higherrequirements for building energy conservation, CSG actively facilitated the fulfilment of the “dual carbon” goals andresponded to the requirements of the policy on building energy conservation and building emission reduction by takingthe lead in the R&D of energy-saving products. A series of innovative and world-leading products were developed, suchas the “Ice Kirin” glass series, thermal insulation products and BIPV products. The Company also actively participatedin the formulation and revision of a series of industry or group standards to promote the advancement of the constructionindustry toward the “dual carbon” goals. In the face of the promising development prospects and the current fierce marketcompetition, CSG implemented multiple measures, such as optimizing customer service, improving product quality,enhancing brand promotion and expanding sales channels, for its “Ice Kirin” glass business and recorded a considerableincrease in the quantity of signed orders for the “Ice Kirin” glass in 2023. The innovation and R&D of energy-savingproducts with higher energy efficiency is important to the energy conservation and emission reduction of newlyconstructed buildings and vital to the energy-conservation-oriented transformation of existing buildings. In order to meetthe market demand for product innovation, CSG will continue to conduct innovation, so as to provide products withhigher energy efficiency for the market.Float glass: In 2023, buoyed by national policies such as the "guarantee of timely delivery of housing projects", the latterhalf of the year saw an uptick in demand from downstream markets, leading to increased sale volumes. Concurrently, the
Company actively pursued cost control and implemented energy-saving measures to drive down production costs. In thecurrent competitive market environment, the Company remains committed to its strategy of offering high-end,differentiated products. As the sales and the market share of its ultra-white glass have further increased, and the high-endbrand of CSG’s ultra-white “Blue Diamond” series becomes mature, the Company has become a leading enterprise inthis industrial segment; moreover, the proportion of the Company’s high-value-added differentiated products continuesto increase, and the market share of the Company in the segment of high-grade float glass stays among the top. TheCompany has intensified efforts to partner with new suppliers and strategically organised raw material procurement forcommodities to mitigate the pressure of rising procurement costs. Furthermore, it has strengthened lean control over theentire production process, continuously enhancing yield rates and reducing production costs. The cold repair and technicaltransformation of the second-line in Xianning Float Company had a certain impact on the Company's float glass capacityand profitability.Electronic glass and display business segmentIn 2023, the electronic glass market faced escalating supply-demand imbalances driven by a global downturn in consumerelectronics demand and persistent expansion of electronic glass capacity. This intensified industry competition, drivingdown product prices and reducing orders. Nevertheless, CSG always recognises R&D as the core of its electronic glassbusiness and unremittingly adopts the development route of product upgrading with the aim of replacing importedproducts with homemade products. In 2023, the Company continued to actively implement product and market upgradingin various application fields, such as intelligent electronic terminals, touch control modules, vehicle-mounted displays,industrial automatic control displays & commercial displays, and smart homes. Thanks to these efforts, the Companymaintained a stable market share for its medium-alumina and high-alumina electronic glass products.The Company's optical coating business faced challenges in output and sales volume in 2023 due to technologicaladvancements such as the widespread adoption of in-cell touch technology. However, in its strategically importantvehicle-mounted business segment, committed to building an industrial chain of electronic components for high-endautomobiles, the Company continued to increase investment in R&D and new projects and maintained the differentiatedstrategy of "product quality & technology first" for market competition.Solar energy business segmentThe macroscopic background of the global consensus for “Green Development” and the domestic timetable of the dualcarbon goals jointly promote a new high-speed development period of the photovoltaic industry after the affordableInternet access is comprehensively achieved. On the basis of objective analysis of its own industrial advantages anddisadvantages, overall consideration of the market environment, industrial development trend and the Group’s overallindustrial development plan, the Company plans to launch the project of 50,000 tons of high-purity crystalline silicon peryear in Haixi Prefecture, Qinghai Province, construction of which is accelerating as scheduled. This project, uponcompletion, is expected to help further expand the Group’s solar energy business and enhance its overall competitiveness.The Company stays abreast of industry trends in silicon wafers, solar cells, modules and photovoltaic power stations,continuously tapping into internal potential to enhance technological capabilities, product quality, and costcompetitiveness.II. Other management workIn 2023, with the focus on the operation and development philosophy of “grasping market share, controlling costs,enhancing management, building corporate culture, and seeking development”, the Company opened up a new path inthe uncertain environment, so as to vigorously promote the Group’s development strategies and ensure the steadyimplementation of all operation and management tasks. In order to ensure the rapid and healthy development of all itsindustrial sectors, the Company spared no effort to ensure production safety, continued to promote differentiated
operations and the capability of intelligent production, and tightly grasped opportunities in the market. The multiplemeasures it took were listed below.
1. The Company enhanced efforts to improve management-based benefit creation as the Company’s integral system underthe dual cycle of “Internal Improvement and External Expansion” with solid foundations could effectively support itsoperation. Furthermore, the Company continuously conducted cost management in multiple aspects, such as costreduction and efficiency increase, centralized procurement, strategic procurement and engineering construction, enhancedthe coordination and co-development of its teams, improved efficiency in service, regulation and decision-making,promoted the Group’s informatized management and construction of digital and intelligent factories, gave play to theleading role of information innovation in the improvement of the capabilities of management and operation, continued topromote management based on the optimized basic standards, and promoted the construction of the five-star factories.Moreover, the Company made efforts to improve the performance in safety management. It redoubled the efforts ofhidden danger investigation and rectification, increased safety and environmental protection training and education, andstrengthened the safety foundation for continuous safe operation. Through the implementation of a series of programs,methods and means for internal control, the Company facilitated the achievement of the Company’s operation objectivesand the response to and remediation of risk incidents in the business processes. Guided by risk control andefficiency/effect improvement and focusing on the Group’s strategies of the operation objectives of the current period,the Company promoted the improvement of its management mechanisms and comprehensively improved its capabilitiesof risk control and business management.
2. The ability to conduct R&D and iteration of technologies, techniques and products is always the key guarantee for thesustainable and healthy development of an enterprise. As the core element of CSG for forming the industrial barrier ofhigh-value-added business lines, the ability helps the Company maintain its industry-leading position. The Company hasmade its comprehensive layout from six perspectives, namely the organizational structure of its R&D system, intellectualproperty rights, top-level product design, high-level R&D platforms, senior talent echelons and the demand for thesupporting talent resources. Based on the layout, the Company has formulated the Group’s R&D strategic plan to guidethe Company’s technological innovation and its sustainable development of product R&D. The Company has alsopromoted the construction of the R&D system and strengthened R&D and innovation, as it has facilitated theindustrialization of its new products and the cross-industry application of its products. For example, it has applied itshigh-alumina electronic glass to automobiles. In 2023, the Company submitted 230 patent applications, including 156 forinventions, and obtained 247 new authorized patents, including 98 authorized invention patents.
3. Energy conservation and environmental protection are the lifeline to the survival and development of a glass companyand the core features of the social responsibilities of an enterprise in an industry with high energy consumption. TheCompany has always been at the leading level in the industry in terms of the control of energy consumption and emissions.CSG takes the lead in the industry to realize comprehensive utilization of energy by means of waste heat powergeneration and distributed photovoltaic power generation. Through comprehensive exhaust gas treatment such asdesulfurization, denitrification and dust removal, it achieves ultra-low emission, which is far lower than the nationalpollutant emission permission value. Under the condition of the same tonnage and the same kiln age, the control ofenergy consumption and the control of emission per unit of production capacity have always been at the leading level inthe industry. Nine subsidiaries of CSG, including Wujiang CSG Glass Co., Ltd., Tianjin CSG Energy-Saving Glass Co.,Ltd., Xianning CSG Energy-Saving Glass Co., Ltd., Xianning CSG Photoelectric Glass Co., Ltd., Xianning CSG GlassCo., Ltd. Yichang CSG Photoelectric Glass Co., Ltd., Yichang CSG Polysilicon Co., Ltd., Hebei Panel Glass Co., Ltd.,and Hebei CSG Glass Co., Ltd., were successfully included in the list of “Green Factory” announced by the Ministry ofIndustry and Information Technology.
4. The Company further improved its organisational structure to safeguard the implementation of its strategic projects.Specifically, the Company vigorously promoted organisational talent development, optimized the organisational structure
and the corresponding staffing and improved the construction of the human resource system. Moreover, the Companyoptimized and adjusted the functional organisation of the headquarters and business divisions to enhance business support,as it specified the functions, posts, and staffing of the three-level structure of the Group’s R&D management andcontinuously promoted the implementation of organisational optimization of R&D at each level. In doing so, the Companyencouraged all subsidiaries of the Group to establish their own R&D department in a gradual manner, so as to furtherimprove the R&D system of the Group.
5. The Company promoted brand construction and cultural development and used culture to facilitate ideologicalunification, bring its teams together and safeguarding CSG’s development. The Company successfully drove the debutof its brand "Ice Kirin" on China Central Television (CCTV), further bolstering the brand's influence. Measures havebeen implemented for brand promotion management to establish a comprehensive brand promotion management system,ensuring unified efforts in brand promotion and upholding the consistency and reputation of CSG's brand image.
2. Revenue and cost
(1) Constitution of operation revenue
Unit: RMB
| 2023 | 2022 | Increase/decrease y-o-y | |||
| Amount | Ratio in operation revenue | Amount | Ratio in operation revenue | ||
| Total of operating income | 18,194,864,366 | 100% | 15,198,706,998 | 100% | 19.71% |
| According to industry | |||||
| Glass industry | 14,685,557,284 | 80.71% | 10,056,739,256 | 66.18% | 46.03% |
| Electronic glass & Display industry | 1,572,642,236 | 8.64% | 1,643,083,831 | 10.81% | -4.29% |
| Solar energy and other industries | 2,248,321,652 | 12.36% | 3,888,582,762 | 25.58% | -42.18% |
| Undistributed | 400,173,854 | 2.20% | 374,349,561 | 2.46% | 6.90% |
| Inter-segment offsets | -711,830,660 | -3.91% | -764,048,412 | -5.03% | -6.83% |
| According to product | |||||
| Glass products | 14,685,557,284 | 80.71% | 10,056,739,256 | 66.18% | 46.03% |
| Electronic glass & Display products | 1,572,642,236 | 8.64% | 1,643,083,831 | 10.81% | -4.29% |
| Solar energy and other products | 2,248,321,652 | 12.36% | 3,888,582,762 | 25.58% | -42.18% |
| Undistributed | 400,173,854 | 2.20% | 374,349,561 | 2.46% | 6.90% |
| Inter-segment offsets | -711,830,660 | -3.91% | -764,048,412 | -5.03% | -6.83% |
| According to region | |||||
| Mainland China | 16,639,820,052 | 91.45% | 14,031,154,824 | 92.32% | 18.59% |
| Overseas | 1,555,044,314 | 8.55% | 1,167,552,174 | 7.68% | 33.19% |
| According to sales model | |||||
| Direct sales | 18,194,864,366 | 100% | 15,198,706,998 | 100% | 19.71% |
(2) List of the industries, products, regions or sales model exceed 10% of the operating income or operatingprofits of the Company
√Applicable □ Not applicable
Unit: RMB
| Operating revenue | Operating cost | Gross profit ratio | Increase/decrease of operating revenue y-o-y | Increase/decrease of operating cost y-o-y | Increase/decrease of gross profit ratio y-o-y | |
| According to industry | ||||||
| Glass industry | 14,685,557,284 | 11,472,952,253 | 21.88% | 46.03% | 49.99% | -2.06% |
| Electronic glass & Display industry | 1,572,642,236 | 1,313,691,653 | 16.47% | -4.29% | 5.47% | -7.72% |
| Solar energy and other industries | 2,248,321,652 | 1,668,976,777 | 25.77% | -42.18% | -33.35% | -9.84% |
| According to product | ||||||
| Glass products | 14,685,557,284 | 11,472,952,253 | 21.88% | 46.03% | 49.99% | -2.06% |
| Electronic glass & Display products | 1,572,642,236 | 1,313,691,653 | 16.47% | -4.29% | 5.47% | -7.72% |
| Solar energy and other products | 2,248,321,652 | 1,668,976,777 | 25.77% | -42.18% | -33.35% | -9.84% |
| According to region | ||||||
| Mainland China | 16,639,820,052 | 12,884,833,088 | 22.57% | 18.59% | 27.83% | -5.59% |
| According to sales model | ||||||
| Direct sales | 18,194,864,366 | 14,141,072,171 | 22.28% | 19.71% | 28.48% | -5.30% |
Under the circumstances that the statistical standards for the Company’s main business data adjusted in the report period,the Company's main business data in the recent year is calculated based on adjusted statistical standards at the end of thereport period
□ Applicable √ Not applicable
(3) Whether the Company’s goods selling revenue higher than the service revenue
√Yes □ No
| Industry | Item | Unit | 2023 | 2022 | Increase/decrease y-o-y (%) |
| Photovoltaic glass | Sales volume | 10,000-ton | 205 | 55 | 272.73% |
| Output | 10,000-ton | 215 | 60 | 258.33% | |
| Inventory | 10,000-ton | 18 | 8 | 125.00% | |
| Architectural glass | Sales volume | 10,000-M2 | 4,594 | 3,770 | 21.86% |
| Output | 10,000-M2 | 4,635 | 3,811 | 21.62% | |
| Inventory | 10,000-M2 | 195 | 153 | 27.45% | |
| Float glass | Sales volume | 10,000-ton | 231 | 236 | -2.12% |
| Output | 10,000-ton | 224 | 243 | -7.82% | |
| Inventory | 10,000-ton | 7 | 15 | -53.33% | |
| Electronic glass | Sales volume | ton | 301,514 | 268,874 | 12.14% |
| Output | ton | 297,593 | 277,954 | 7.07% | |
| Inventory | ton | 22,465 | 26,538 | -15.35% | |
| High-purity crystalline silicon | Sales volume | ton | 4,840 | 8,454 | -42.75% |
| Output | ton | 4,946 | 8,957 | -44.78% | |
| Inventory | ton | 153 | 254 | -39.76% | |
| Silicon wafer | Sales volume | 10,000-piece | 18,843 | 23,946 | -21.31% |
| Output | 10,000-piece | 19,318 | 23,020 | -16.08% |
| Inventory | 10,000-piece | 875 | 372 | 135.22% | |
| Solar cell | Sales volume | MW | 592 | 540 | 9.63% |
| Output | MW | 596 | 536 | 11.19% | |
| Inventory | MW | 9 | 7 | 28.57% |
Reasons for major changes (over 30% year-on-year) in relevant data
√ Applicable □ Not applicable
1. Photovoltaic glass: The increases in production volume, sales volume and inventory were mainly due to theestablishment of new production lines in some subsidiaries.
2. Float glass: The decrease in inventory was because the quantity of sales was greater than that of production during theyear.
3. High-purity crystalline silicon: The decreases in production volume and sales volume were due to the changedproduction cycle as a result of the transformation of Yichang Polysilicon’s high-purity crystalline silicon production line.
4. Silicon wafer: The increase in inventory was mainly because the production and sales rhythm in the silicon waferbusiness of subsidiaries were adjusted.
(4) Fulfilment of significant sales contracts and procurement contracts signed by the Company up to thereport period
√ Applicable □ Not applicable
Fulfilment of significant sales contracts signed by the Company up to the report period
√ Applicable □ Not applicable
Unit: RMB 0,000
| Subject matter | Name of the other party | Total contract amount | Total amount fulfilled | Amount performed during the report period | Amount to be performed | Normally performed or not | Description of the contract not being performed normally | The amount of sales revenue recognized during the period | The cumulative amount of sales revenue recognized | Receivables collection status |
| Photovoltaic glass | LONGi Solar Technology Ltd., Zhejiang LONGi Solar Technology Ltd., Taizhou LONGi Solar Technology Ltd., Yinchuan LONGi Solar Technology Ltd., Chuzhou LONGi Solar Technology Ltd., Datong LONGi Solar Technology Ltd., LONGi (H.K.) Trading Limited, LONGi (KUCHING) SDN. BHD., Xianyang LONGi Solar Technology Ltd., Jiangsu LONGi Solar Technology Ltd., Jiaxing LONGi Solar Technology Ltd., Xi’an LONGi Green Building Technology Ltd. | 650,000 | 113,619 | 47,308 | 536,381 | Yes | Not applicable | 43,339 | 102,261 | Normal refund |
| High-purity silicon materials | Trina Solar Co., Ltd. | 2,121,000 | 31,964 | 31,964 | 2,089,036 | Yes | Not applicable | 28,287 | 28,287 | refund |
| Solar-grade raw polycrystalline silicon materials | Customer 1 and Customer 2 | 999,900 | 30,832 | 30,832 | 969,068 | Yes | Not applicable | 27,285 | 27,285 | refund |
| Solar-grade raw polycrystalline | Customer | 1,970,000 | 1,970,000 | Yes | Not applicable |
Note: The above material contracts are long-term sales contracts signed between the Company and customers. A total supply volumeis given in such a contract, the specific price is negotiated on a monthly basis, and the total contract amount is subject to the finaltransaction amount.
Fulfilment of significant procurement contracts signed by the Company up to the report period
□ Applicable ?Not applicable
(5) Constitution of operation cost
Industry and product classification
Unit: RMB
silicon materials
Industry
| Industry | Item | 2023 | 2022 | Increase/decrease y-o-y | ||
| Amount | Ratio in operating costs | Amount | Ratio in operating costs | |||
| Glass industry | Materials, Labor wages, Depreciation | 11,472,952,253 | 81.13% | 7,649,392,465 | 69.49% | 49.99% |
| Electronic glass & Display industry | Materials, Labor wages, Depreciation | 1,313,691,653 | 9.29% | 1,245,581,644 | 11.32% | 5.47% |
| Solar energy and other industries | Materials, Labor wages, Depreciation | 1,668,976,777 | 11.80% | 2,504,032,458 | 22.75% | -33.35% |
Unit: RMB
| Product | Item | 2023 | 2022 | Increase/decrease y-o-y | ||
| Amount | Ratio in operating costs | Amount | Ratio in operating costs | |||
| Glass products | Materials, Labor wages, Depreciation | 11,472,952,253 | 81.13% | 7,649,392,465 | 69.49% | 49.99% |
| Electronic glass & Display products | Materials, Labor wages, Depreciation | 1,313,691,653 | 9.29% | 1,245,581,644 | 11.32% | 5.47% |
| Solar energy and other products | Materials, Labor wages, Depreciation | 1,668,976,777 | 11.80% | 2,504,032,458 | 22.75% | -33.35% |
Note: The main components of operating costs include materials, labor, depreciation, etc. In order to avoid the disclosure of businesssecrets and damage the interests of the listed company and investors, the operating costs are only separated and disclosed according tothe business sector and product classification of the Company.
(6) Whether the consolidated scope has changed during the report period
√ Yes □ No
| Relationship with the Company | Name | How the equity interests were obtained | Date when the equity interests were obtained/the subsidiary was established | The Company’s interest (%) |
Subsidiary
| Subsidiary | Guangdong Licheng Construction Engineering Co., Ltd. | Acquired in cash | March 21, 2023 | 100% |
Subsidiary
| Subsidiary | Guangxi CSG Mining Co., Ltd. | Incorporated | April 24, 2023 | 100% |
Subsidiary
| Subsidiary | CSG Japan Co., Ltd. | Incorporated | April 26, 2023 | 100% |
Subsidiary
| Subsidiary | Wuxuan Nanxin Mining Co., Ltd. | Incorporated | May 19, 2023 | 60% |
Subsidiary
| Subsidiary | Qinghai CSG Photovoltaic Technology Co., Ltd. | Incorporated | October 18, 2023 | 100% |
| Subsidiary | Jiangyou CSG Quartz Sand Co., Ltd. | Incorporated | December 8, 2023 | 100% |
(7) Major changes or adjustment in business, product or service of the Company in the report period
□ Applicable √ Not applicable
(8) Major customers and major suppliers
Major customers of the Company
| Total sales to the top five customers (RMB) | 3,685,320,563 |
| Proportion in total annual sales volume for top five customers | 20.24% |
| Proportion of related party sales in total annual sales volume for top five customers | 0% |
Information of the top five customers of the Company
| Serial | Name of customer | Sales volume (RMB) | Proportion in total annual sales |
| 1 | Customer A | 1,128,931,842 | 6.20% |
| 2 | Customer B | 769,903,350 | 4.23% |
| 3 | Customer C | 624,077,405 | 3.43% |
| 4 | Customer D | 584,885,129 | 3.21% |
| 5 | Customer E | 577,522,837 | 3.17% |
| Total | -- | 3,685,320,563 | 20.24% |
Other statement of main customers
□ Applicable √ Not applicable
Major suppliers of the Company
| Total purchase amount from the top five suppliers (RMB) | 3,733,860,756 |
| Proportion in total annual purchase amount from the top five suppliers | 22.09% |
| Proportion of related party sales in total purchase amount from the top five suppliers | 0% |
Information of the top five suppliers of the Company
| Serial | Name of supplier | Purchase amount (RMB) | Proportion in total annual purchase |
| 1 | Supplier A | 913,082,132 | 5.40% |
| 2 | Supplier B | 901,591,818 | 5.34% |
| 3 | Supplier C | 762,513,460 | 4.51% |
| 4 | Supplier D | 601,974,336 | 3.56% |
| 5 | Supplier E | 554,699,010 | 3.28% |
| Total | -- | 3,733,860,756 | 22.09% |
Other statement of major suppliers
□ Applicable √ Not applicable
3. Expenses
Unit: RMB
| 2023 | 2022 | Increase/decrease y-o-y | Note of major changes | |
| Sales expense | 317,702,143 | 313,754,976 | 1.26% | |
| Management expense | 865,371,137 | 718,938,905 | 20.37% | |
| Financial expense | 158,826,105 | 148,212,982 | 7.16% | |
| R&D expenses | 739,301,765 | 644,146,614 | 14.77% |
4. R&D expenses
√ Applicable □ Not applicable
| Name of the major R&D project | Purpose | Progress | Target | Expected impact on the Company’s future development |
| R&D of the Multi-silver Low-E product | In response to the national concept requirements of energy saving, green and low carbon in the whole life cycle of buildings, Low-E products with multi-layer infrared reflection functional layer are developed. | Through the optical design and experimental verification of a variety of membrane structures and materials, the product has been developed and finalized. The product has excellent performance. | The product has lower emissivity, higher selection factor and better appearance performance. | To achieve technical breakthroughs and product upgrades of high-performance building energy-saving LOW-E products to meet the needs of national low-carbon development. |
| Development of colourless double-layer anti-reflection (AR) coated glass | The project is aimed at developing colourless double-layer AR coated glass to reduce the impact of colour differences in coated glass on the appearance of modules and to diversify the portfolio of CSG's AR coated glass. | The development of colourless double-layer AR coated glass has been completed, and the coated glass product has been certified for its excellent performance. | The Company aspires to provide the market with AR coated glass that meets architectural aesthetics by developing colourless double-layer AR coated glass. | Realize the autonomy of AR glass product process technology, cope with the changes of photovoltaic module application scenarios and solve the application limitations caused by the appearance of coated glass color difference. |
| 2.0mm photovoltaic glass full tempering technology development | Improve the safety performance of 2.0mm photovoltaic glass in extreme environmental conditions (such as strong winds, snow, hail) to ensure the stable operation of photovoltaic modules. | The development of 2.0mm full tempered products has been completed. | On the basis of lightweight, to ensure the strength requirements of photovoltaic modules in extremely harsh conditions, improve product competitiveness. | Enrich the series of lightweight photovoltaic glass products to enhance the group's market competitiveness. |
| Development of ultra-thin photovoltaic glass | Develop ultra-thin glass, adapt to the development trend of lightweight photovoltaic modules, and enrich the company's differentiated product categories. | The production of ultra-thin glass has reached the expected goal and stable production, with continuous mass production capacity. | The successful development of ultra-thin photovoltaic glass is suitable for lightweight double-glass components, which is conducive to reducing the consumption of resources and energy and meeting the needs of energy conservation and environmental protection. | The development of ultra-thin photovoltaic glass enhances the Group's leading edge in ultra-thin photovoltaic glass technology and creates core competitiveness. |
| Study on bottom structure erosion of float glass melting kiln | Develop a kiln structure operation process to achieve continuous and stable operation of the kiln and significantly extend the operation cycle of the production line. | Preliminary control measures have been carried out according to the test data, and the control effect is higher than expected. | Meet the requirements of low carbon and environmental protection, and extend the service life of float glass kiln. | Enhance the Group's design and maintenance capabilities for float glass melting furnaces to ensure the leading position in the float glass industry. |
| Development of high aluminum glass for automobile | Developed independent intellectual property rights of high aluminum glass for automobiles. | The research and development of glass formula has been completed, and the product performance has been verified by several rounds of laboratory and client, meeting the market requirements. | To realize the industrialization of high-aluminum glass with independent intellectual property rights, and provide lightweight and high-strength automotive glass. | Realize a new application track of high aluminum glass, widen the application scenario of high aluminum glass, and avoid disorderly competition in the industry. |
| Classic color system triple silver product development | Triple silver low radiation glass products of classic color system were developed to meet the mainstream demand of the market. | Complete the design of film system and product debugging, and realize the mass production of products through various performance tests. | Meet the mainstream color appearance needs of the market, and further improve the energy-saving index of products. | Improve the energy-saving performance of triple silver products to ensure that the products are leading the industry. |
| Research and development of stained glass for photovoltaic integrated building | Develop and apply stained glass for photovoltaic integration to enhance the aesthetics of photovoltaic integrated buildings and reduce the loss of power generation efficiency. | Complete the design of film system and product debugging, and realize the mass production of products through various performance tests. | To meet the designers' demand for the appearance color design of photovoltaic integrated buildings. | Take the lead in the research and development of photovoltaic integrated building glass, and expand the application scenarios of energy-saving glass. |
| Technological upgrade of the intelligent control system for the reduction kiln | Upgrade the intelligent control system of the reduction furnace to achieve the sustainability and repeatability of the reduction furnace data, and meet the requirements of digital, unmanned and intelligent low-carbon technology for industry development. | The reduction furnace intelligent control system technology upgrade has been completed, and the energy consumption index has reached the industry-leading level. The project and external units jointly declared the industry-university-research cooperation innovation, and won the second prize of science and technology progress of China Chemical Society. | Under the premise of ensuring product quality and maximum output, the intelligent control system of the reduction furnace is upgraded to provide strong support for the digital green development of enterprises. | This project breaks through the energy consumption bottleneck of the preparation of high purity crystalline silicon, and can be widely used in different furnace types, belonging to the core technology of high purity crystalline silicon. |
R&D staff of the Company
| 2023 | 2022 | Ratio of change | |
| Number of R&D staff (person) | 1,879 | 1,953 | -3.79% |
| The proportion of the number of R&D staff | 12.82% | 13.70% | -0.88% |
| Educational structure of R&D staff | |||
| Undergraduate | 959 | 948 | 1.16% |
| Master | 54 | 47 | 14.89% |
| Doctor | 3 | 7 | -57.14% |
| Below undergraduate | 863 | 951 | -9.25% |
| Age composition of R&D staff | |||
| Under 30years old | 436 | 470 | -7.23% |
| 30~40years old | 949 | 1,008 | -5.85% |
| Over 40years old | 494 | 475 | 4.00% |
Note: To facilitate investors' understanding of the Company's R&D personnel composition, adjustments have been madeto the statistical standards for R&D personnel in the report period. Statistics are based on the aggregation standards forR&D expenses for each year. R&D personnel refers to employees directly engaged in R&D activities at the end of thereport period, alongside management staff and direct service staff closely related to the R&D activities.R&D investment of the Company
| 2023 | 2022 | Ratio of change | |
| Amount of R&D investment (RMB) | 754,224,256 | 691,969,726 | 9% |
| Ratio of the R&D investment to the operating income | 4.15% | 4.55% | -0.40% |
| Amount of the capitalized R&D investment (RMB) | 14,922,491 | 47,823,112 | -68.80% |
| Ratio of the capitalized R&D investment to the R&D investment | 1.98% | 6.91% | -4.93% |
Reasons and effects of major changes in the composition of the company's R&D staff
□ Applicable √ Not applicable
Reason of remarkable changes over the previous year of the ratio of the total R&D investment amount to the operatingincome
□ Applicable √ Not applicable
Reason of substantial change of the ratio of the R&D investment capitalization and its reasonable explanation
√ Applicable □Not applicable
Due to the completion of some R&D projects.
5. Cash flow
Unit: RMB
| Item | 2023 | 2022 | Increase/decrease y-o-y |
| Subtotal of cash inflow from operating activities | 18,181,609,496 | 15,830,876,858 | 14.85% |
| Subtotal of cash outflow from operating activities | 15,421,820,602 | 13,873,753,627 | 11.16% |
| Net cash flow from operating activities (1) | 2,759,788,894 | 1,957,123,231 | 41.01% |
| Subtotal of cash inflow from investment activities | 54,903,880 | 3,808,707,836 | -98.56% |
| Subtotal of cash outflow from investment activities | 4,308,138,530 | 6,115,102,337 | -29.55% |
| Net cash flow from investment activity (2) | -4,253,234,650 | -2,306,394,501 | 84.41% |
| Subtotal of cash inflow from financing activity | 3,902,491,900 | 4,401,690,981 | -11.34% |
| Subtotal of cash outflow from financing activity | 3,958,565,009 | 2,222,287,291 | 78.13% |
| Net cash flow from financing activity (3) | -56,073,109 | 2,179,403,690 | -102.57% |
| Net increased amount of cash and cash equivalent (4) | -1,542,756,596 | 1,837,540,679 | -183.96% |
Statement on the main factors in the major changes of relevant data
√ Applicable □ Not applicable
(1) It was mainly due to the increase in cash received from sales of goods or rendering of services.
(2) It was mainly due to the increase in cash paid to acquire fixed assets, intangible assets and other long-term assets, etc.
(3) It was mainly due to the increase in cash repayments of borrowings.
(4) It was mainly due to the decrease in net cash flow from financing activity.
Statement of the reasons for significant differences between the net cash flow from operating activities and the netprofit of the year during the report period
□ Applicable √ Not applicable
V. Non-main business analysis
√ Applicable □ Not applicable
Unit: RMB
| Amount | Percentage to total profits | Explanation of the reason | Whether sustainable or not | |
| Income from investment | -6,610,842 | -0.41% | Mainly interest on discounted notes, debt restructuring, etc. | No |
| Impairment of assets | 346,737,457 | 21.24% | Mainly impairment of long-term assets, etc. | No |
| Non-operating income | 23,191,407 | 1.42% | Mainly payments that cannot be made, insurance compensation, etc. | No |
| Non-operating expenditure | 13,420,895 | 0.82% | Mainly loss on the retirement of non-current assets, etc. | No |
VI. Asset and liability analysis
1. Significant changes in asset composition
Unit: RMB
| End of 2023 | Beginning of 2023 | Increase or decrease in proportion | Explanation of significant changes | |||
| Amount | Percentage to total assets | Amount | Percentage to total assets | |||
| Cash at bank and on hand | 3,076,774,218 | 10.13% | 4,604,607,779 | 17.78% | -7.65% | Mainly due to the repayment of mature corporate bonds |
| Accounts receivable | 1,881,796,408 | 6.20% | 1,179,992,784 | 4.56% | 1.64% | Mainly due to the increase in sales revenue from photovoltaic glass |
| Inventories | 1,590,224,795 | 5.24% | 1,783,941,982 | 6.89% | -1.65% | |
| Investment properties | 290,368,105 | 0.96% | 290,368,105 | 1.12% | -0.16% | |
| Fixed assets | 13,145,568,631 | 43.30% | 11,243,236,175 | 43.40% | -0.10% | |
| Construction in progress | 4,325,016,420 | 14.24% | 2,520,362,291 | 9.73% | 4.51% | Mainly due to the increase in expenditure on ongoing constructions of some subsidiaries |
| Right-of-use assets | 21,637,628 | 0.07% | 9,908,413 | 0.04% | 0.03% | Mainly due to the rental of building space and land by some subsidiaries |
| Short-term borrowings | 436,853,583 | 1.44% | 345,000,000 | 1.33% | 0.11% | |
| Contract liabilities | 362,538,795 | 1.19% | 418,051,975 | 1.61% | -0.42% | |
| Long-term borrowings | 6,221,648,676 | 20.49% | 4,353,589,980 | 16.81% | 3.68% | Mainly due to the increase in loans for the projects |
| Lease liabilities | 15,134,562 | 0.05% | 3,564,330 | 0.01% | 0.04% | Mainly due to the increase in the leasing business of subsidiaries |
| Notes receivable | 1,593,520,494 | 5.25% | 156,943,437 | 0.61% | 4.64% | Mainly due to the increase in inflows in the form of acceptance notes and the increase in notes |
| in pledge | ||||||
| Receivables financing | 529,945,623 | 1.75% | 1,095,412,643 | 4.23% | -2.48% | Mainly due to the consigned collection of due notes, etc. |
| Non-current assets due within one year | 84,191,224 | 0.28% | 20,000,000 | 0.08% | 0.20% | Mainly due to the maturity within one year of previously purchased large-amount certificate of deposit |
| Other current assets | 352,066,698 | 1.16% | 108,248,545 | 0.42% | 0.74% | Mainly due to the increase in overpaid value added tax, etc. |
| Intangible assets | 2,490,530,224 | 8.20% | 1,438,102,666 | 5.55% | 2.65% | Mainly due to the transfer of the prepayment for mining concession from other non-current assets to intangible assets as the mining concession certificate was obtained |
| Development expenditure | 0 | 0% | 46,755,816 | 0.18% | -0.18% | Mainly due to the increase in the carry-over of R&D projects of some subsidiaries into intangible assets upon completion |
| Long-term prepaid expenses | 18,764,429 | 0.06% | 2,647,939 | 0.01% | 0.05% | Mainly due to the increase in items to be amortized |
| Deferred tax assets | 223,025,031 | 0.73% | 161,489,749 | 0.62% | 0.11% | Mainly due to the impairment provisions made by some subsidiaries |
| Other non-current assets | 396,600,354 | 1.31% | 856,620,485 | 3.31% | -2% | Mainly due to the transfer of the prepayment for mining concession from other non-current assets to intangible assets as the mining concession certificate was obtained |
| Notes payable | 2,041,353,189 | 6.72% | 994,557,496 | 3.84% | 2.88% | Mainly due to the increase in notes issued |
| Accounts payable | 3,341,624,602 | 11.01% | 2,033,542,627 | 7.85% | 3.16% | Mainly due to the increase in engineering, equipment and material payables |
| Non-current liabilities due within one year | 1,248,891,979 | 4.11% | 2,481,433,006 | 9.58% | -5.47% | Mainly due to the repayment of mature corporate bonds |
| Other current liabilities | 454,332,686 | 1.50% | 50,407,240 | 0.19% | 1.31% | Mainly due to the increase in notes unqualified for derecognition, the issuance of electronic debt obligation, etc. |
| Estimated | 13,050,082 | 0.04% | 0 | 0% | 0.04% | Mainly due to the |
| Liabilities | increase in mine rehabilitation costs, etc. | |||||
| Long-term payables | 88,204,163 | 0.29% | 129,236,878 | 0.50% | -0.21% | Mainly due to the payments for finance leases |
| Special reserve | 1,411,139 | 0% | 731,580 | 0% | 0% | Mainly due to a low base in the prior period and the changes in the current period |
The proportion of overseas assets was relatively high
□Applicable √ Not applicable
2. Assets and liabilities measured at fair value
√ Applicable □ Not applicable
Unit: RMB
| Item | Opening balance | Profit and loss from changes in fair value in the current period | Cumulative changes in fair value included in equity | Impairment accrued in the current period | Purchase amount for this period | Amount sold in this period | Other changes | Closing balance |
| financial assets | ||||||||
| Investment properties | 290,368,105 | 290,368,105 | ||||||
| Receivables financing | 1,095,412,643 | -565,467,020 | 529,945,623 | |||||
| Total of the above | 1,385,780,748 | -565,467,020 | 820,313,728 | |||||
Other changes: nilDuring the report period, whether the company’s main asset measurement attributes changed significantly or not
□Yes √No
3. Limited asset rights as of the end of the report period
Unit: RMB
| Item | Limited amount | Limited reason |
| Monetary funds | 25,512,563 | Restricted circulation of deposits, freezes, etc |
| Note receivable | 1,157,485,085 | Restricted pledge |
| Fix assets | 106,982,081 | Limited finance lease |
| Total | 1,289,979,729 |
VII. Investment
1. Overall situation
√Applicable □ Not applicable
| Investment in the report period (RMB) | Investment in the same period of the previous year ( RMB) | Changes |
| 4,308,138,530 | 6,115,102,337 | -29.55% |
2. The major equity investment obtained in the report period
□ Applicable √ Not applicable
3. The major ongoing non-equity investment in the report period
√ Applicable □ Not applicable
Unit: RMB
| Project name | investment | Fixed asset investment or not | Industry involved | Amount invested during the report period | Accumulative amount actually invested by the end of the report period | Source of funds | Progress of project | Expected revenue | Accumulative revenue achieved by the end of the report period | Reasons for not achieving the planned progress and the expected revenue | Date of disclosure (if applicable) | Index of disclosure (if applicable) |
| Zhaoqing CSG High-grade Automotive Glass Production Line Project | Self-built | Yes | Manufacturing industry | 55,025,636 | 147,601,326 | Own funds | Under construction | 58,000,000 | No revenue as the project is still in the construction period. | 13 December 2019 | Announcement number: 2019-077 | |
| Anhui Fengyang Lightweight & High-permeability Panel for Solar Energy Equipment Manufacturing Base Project | Self-built | Yes | Manufacturing industry | 615,304,618 | 3,200,105,693 | Own funds and loans from financial institutions | Already put into operation | 435,660,000 | The project has been completed, and the revenue thereof has been reflected in profits. | 6 March 2020 | Announcement number: 2020-010 | |
| Wujiang CSG Architectural New Architectural Glass Intelligent Manufacturing Plant Construction Project | Self-built | Yes | Manufacturing industry | 8,365,823 | 87,536,510 | Own funds and loans from financial institutions | Under construction | 50,490,000 | Part of the project has been completed, and the revenue thereof has been reflected in profits. | 24 June 2020 | Announcement number: 2020-051 | |
| Xi’an CSG Energy-saving Glass Production Line Project | Self-built | Yes | Manufacturing industry | 180,889,972 | 222,583,993 | Own funds and loans from financial institutions | Under construction | 42,220,000 | No revenue as the project is still in the construction period. | 7 November 2020 | Announcement number: 2020-070 |
| Hebei Panel Glass Ultra-thin Electronic Glass Line Construction Project | Self-built | Yes | Manufacturing industry | 51,161,670 | 308,479,283 | Own funds and loans from financial institutions | Already put into operation | 46,710,000 | The project has been completed, and the revenue thereof has been reflected in profits. | 27 March 2021 | Announcement number: 2021-008 | |
| Xianning CSG 1200T/D Photovoltaic Packaging Material Production Line Project | Self-built | Yes | Manufacturing industry | 129,225,232 | 856,221,597 | Own funds and loans from financial institutions | Already put into operation | 128,350,000 | The project has been completed, and the revenue thereof has been reflected in profits. | 27 March 2021 | Announcement number: 2021-008 | |
| CSG East China Headquarters Building | Self-built | Yes | Manufacturing industry | 4,904,808 | 7,640,989 | Own funds and loans from financial institutions | Under construction | No revenue as the project is still in the construction period. | 27 August 2021 | Announcement number: 2021-039 | ||
| CSG Guangxi Beihai Photovoltaic Green Energy Industrial Park Project (Phase I) | Self-built | Yes | Manufacturing industry | 705,147,093 | 738,360,846 | Own funds and loans from financial institutions | Under construction | 557,640,000 | No revenue as the project is still in the construction period. | 10 September 2021 | Announcement number: 2021-041 | |
| Hefei CSG Energy-saving Glass Intelligent Manufacturing Industry Base Project | Self-built | Yes | Manufacturing industry | 1,196,423 | 3,204,661 | Own funds and loans from financial institutions | Preparatory stage | 46,660,000 | No revenue as the project is still in the preparatory period. | 15 October 2021 | Announcement number: 2021-043 | |
| Xianning CSG Energy-saving Glass Co., Ltd. Production Line Reconstruction and Expansion Construction Project | Self-built | Yes | Manufacturing industry | 40,338,112 | 46,024,610 | Own funds and loans from financial institutions | Under construction | 27,130,000 | No revenue as the project is still in the construction period. | 3 December 2021 | Announcement number: 2021-051 | |
| Phase I Upgrading and Technical Transformation Project of Qingyuan CSG | Self-built | Yes | Manufacturing industry | 2,396,602 | 26,691,570 | Own funds and loans from financial | Under construction | 60,210,000 | No revenue as the project is still in the | 25 December 2021 | Announcement number: 2021-053 |
| Energy-Saving New Materials Co., Ltd. | institutions | construction period. | ||||||||||
| Dongguan Solar G6/G7 Line Process and Equipment Upgrading Project | Self-built | Yes | Manufacturing industry | 46,971,826 | 65,737,426 | Own funds and loans from financial institutions | Already put into operation | 41,560,000 | The project has been completed, and the revenue thereof has been reflected in profits. | 29 March 2022 | Announcement number: 2022-006 | |
| High-purity crystalline silicon project with an annual output of 50,000 tons in Haixi Prefecture, Qinghai Province | Self-built | Yes | Manufacturing industry | 2,636,455,139 | 2,646,774,148 | Own funds and loans from financial institutions | Under construction | 863,280,000 | No revenue as the project is still in the construction period. | 23 June 2022 | Announcement number: 2022-024 | |
| Xianning Float No. 2 Production Line (700 tons/day) Technology Upgrade and Transformation Project | Self-built | Yes | Manufacturing industry | 145,119,040 | 145,119,040 | Own funds and loans from financial institutions | Already put into operation | 38,350,000 | No revenue as construction of the project has just been completed. | 9 November 2022 | Announcement number: 2022-061 | |
| Anhui Fengyang 37.6 MW Distributed Photovoltaic Power Generation Project | Self-built | Yes | Manufacturing industry | 83,354,432 | 83,354,432 | Own funds and loans from financial institutions | Under construction | 11,000,000 | No revenue as the project is still in the construction period. | 9 November 2022 | Announcement number: 2022-061 | |
| Chengdu Float Three Sets of Standby Environmental Protection Facilities for Flue Gas Treatment Construction Project | Self-built | Yes | Manufacturing industry | 54,638,688 | 55,247,681 | Own funds and loans from financial institutions | Already put into operation | No revenue as construction of the project has just been completed. | 9 November 2022 | Announcement number: 2022-061 | ||
| Total | -- | -- | -- | 4,760,495,114 | 8,640,683,805 | -- | -- | 2,407,260,000 | 0 | -- | -- | -- |
4. Financial assets investment
(1) Securities investment
□ Applicable √ Not applicable
There was no securities investment during the report period.
(2) Derivative investment
□ Applicable √ Not applicable
There was no derivative investment during the report period.
5. Use of raised fund
□ Applicable √ Not applicable
There was no use of raised fund during the report period.VIII. Sales of major assets and equity
1. Sales of major assets
□ Applicable √ Not applicable
The Company did not sell major assets during the report period.
2. Sales of major equity
□ Applicable √ Not applicable
IX. Analysis of main holding companies and joint -stock companies
√Applicable □ Not applicable
Particular about main subsidiaries and joint -stock companies which have influence on the Company's net profit by over10%
Unit: RMB
| Name of company | Type | Main business | Registered capital | Total assets | Net Assets | Operating revenue | Operating profit | Net profit |
| Yichang CSG Polysilicon Co., Ltd. | Subsidiary | Production and sales of high-purity silicon material products | million | 1,836,144,837 | 1,335,732,586 | 1,354,066,207 | 262,056,789 | 273,886,936 |
| Anhui CSG New Energy Material Technology Co., Ltd. | Subsidiary | Production and sales of solar glass products | 1,750 million | 5,247,187,947 | 1,938,768,694 | 3,718,776,281 | 438,567,640 | 391,745,328 |
| Chengdu CSG Glass Co., Ltd. | Subsidiary | Manufacture and sales of various special glass | 260 million | 857,732,778 | 569,417,205 | 1,382,170,791 | 182,473,711 | 161,895,776 |
| Xianning CSG Glass Co., Ltd. | Subsidiary | Manufacture and sales of various special glass | 235 million | 2,295,851,888 | 868,550,933 | 1,663,503,020 | 144,959,602 | 142,685,803 |
| Wujiang CSG Glass Co., Ltd. | Subsidiary | Manufacture and sales of various special glass | 565.04 million | 1,432,299,755 | 907,583,093 | 1,925,345,420 | 141,149,440 | 127,071,020 |
| Dongguan CSG Architectural Glass Co., Ltd. | Subsidiary | Deep processing of glass | 240 million | 972,676,410 | 561,958,955 | 1,146,130,755 | 134,578,893 | 120,513,254 |
| Yichang CSG Polysilicon Co., Ltd. | Subsidiary | Production and sales of display components | 560 million | 817,636,507 | 445,476,253 | 334,903,252 | -262,346,222 | -220,020,614 |
Particulars about subsidiaries obtained or disposed in report period
□Applicable √ Not applicable
Description of main holding and shareholding companiesIn 2023, Yichang CSG Polysilicon Co., Ltd. experienced a decline in both the output, sales volume, and unit price ofproducts such as high-purity crystalline silicon, resulting in a year-on-year decrease in operating results. Anhui CSG NewEnergy Material Technology Co., Ltd. and Xianning CSG Glass Co., Ltd. experienced a significant boost in the outputand sales volume of photovoltaic glass as they put new production lines into operation, leading to substantial growth inoperating results compared to the previous year. The operating performance of Yichang CSG Display Co., Ltd. declineddue to the downturn in the electronic consumer goods market; meanwhile, a provision for long-term asset impairmentwas made this year based on the results of asset impairment testing, which resulted in its significant losses.X. Structured main bodies controlled by the Company
□ Applicable √ Not applicable
XI. Outlook of the Company’s future development
1. Tendency of development of the industries the Company engages
Please refer to the relevant content of "I. Particulars about the industry the Company engages in during the report period".
2. The Company’s development strategy
The Group will formulate strategic development goals and implement strategic development plans under the guidance thenational strategic goals of “dual carbon”, with a focus on “low carbon and energy saving, green and environmentalprotection, scientific and technological innovation, and intelligent manufacturing”. The Company plans to form the threeindustrial clusters of energy-saving glass, electronic glass and photovoltaic materials, and create the three high-gradeproducts of multi-silver “Ice Kirin” glass, high-grade electronic glass and “Blue Diamond” ultra-white glass. TheCompany will integrate industrial resources, strengthen the advantage of raw material resources, improve technology andR&D strength, continue to enhance its core competitiveness, expand market share and market influence, occupy adominant position in the industry, and comprehensively improve the credibility and influence of the CSG brand. Also, itwill plan the layout of the CSG industry from a global and macro perspective, accelerate the development of new
industries and consolidate the Company’s capability to resist cyclical risks, and build CSG into an internationallyinfluential enterprise group that is related to both the upstream and downstream portions of the glass industry and theenergy industry.
3. Business plan of the Company in 2024
① Strengthen the capability of group operation and management, improve the level of fine management and professionalmanagement, and promote the implementation of such measures as cost reduction and efficiency increase management,supply chain management and lean management to ensure the completion of the Company’s operation and constructionobjectives in 2024;
② Build an informatization platform for R&D management, improve the qualification of the R&D innovation platformof CSG, plan the pipeline for the development of the next generation of new products, and promote technologicalupgrading and product iteration;
③ Enhance talent management, establish a remuneration incentive system that links remuneration with performance,improve the Company’s incentive mechanism, strengthen employee training, select and cultivate reserve cadres, introducehigh-quality talents, and intensify the building of talents echelon.
④ Strengthen capital planning, control capital risks and reduce financing costs;
⑤ Further enhance cost management and reduce various costs to improve market competitiveness;
⑥Steadily promote the safe construction and timely operation of projects under construction, and explore the relevantindustrial chains for breakthroughs;
⑦ Improve the safety, environmental protection and duty performance capability management system, and carry on withthe building of the informatization management platform for safety and environmental protection to significantly improvesafety and environmental protection management.
4. Fund demand, use plan and fund source
In 2024, the Company’s capital expenditure is expected to be approximately RMB 5,356 million, which is mainly usedfor construction of the project of lightweight & high-permeability panel for solar energy equipment and complementarysand ore projects, construction of the Qinghai high-purity crystalline silicon project, technical upgrade and transformationin all relevant industries, capacity expansion, etc. The main sources of funds are own funds and loans from financialinstitutions.
5. Risk factors and countermeasures
In 2024, in the face of severe international and domestic political and economic development and the task of building a“Century CSG”, the Company will face the following risks and challenges:
① The international political environment still faces many uncertainties.
Affected by the complicated international political environment, domestic economy still faces many challenges anduncertainties. In 2024, the Company will continue to strengthen its attention to the market, timely adjust operation strategyaccording to market changes, and strive to achieve the annual core work objectives through steady operation.
②The glass business faces fierce competition among similar products, and pressure from rising price of raw materialsand fuels such as heavy alkali and natural gas and increasingly high labour cost. The photovoltaic glass industry not onlyfaces the risk of temporarily exacerbated overcapacity but also encounters severe homogenisation risks within the industry.Moreover, it faces risks stemming from competition between various processes of the photovoltaic industry chain, whichcan impact demand for photovoltaic glass. With the real estate sector entering an adjustment cycle and overall investment
declining, the architectural glass industry faces the risk of intensified competition within the glass deep processing sector.The float glass industry faces the risk of temporarily decreased demand in the downstream architectural glass market. Theelectronic glass industry contends with sustained overcapacity, intensifying supply-demand imbalances, and withheightened competition among domestic players offering similar products. The continuous release of new capacity in thesolar energy industry will pose the risk of price declines due to temporary overcapacity. To cope with aforesaid risks, theCompany will take the following measures:
A. In the photovoltaic glass segment, the Company will devise targeted strategies and implement a range of robustmeasures to achieve its business objectives. In terms of internal operation, its core focus remains on "ensuring safety,stabilising production, improving quality, and reducing costs." The Company is fully committed to the stability of theproduction process and the effective improvement of product quality, and will unswervingly and continuously promotecost reduction and efficiency enhancement, so as to strengthen the core competitiveness. Regarding sales, the Companywill vigorously pursue the strategy of "expanding markets, adjusting structure, reducing costs, and controlling risks."Based on industry characteristics, it will optimise its product structure to match market demand and continuously advancelean management and differentiated operations to further enhance profitability. The Company will also intensify effortsto develop key customers, thereby matching the new capacity released and enhancing industry competitiveness.Externally, it will pay closer attention to the demand-supply dynamics of raw materials, and timely and strategicallyprepare materials to reduce the impact of the price fluctuations of raw materials on its operating results.B. In the architectural glass segment, the Company will accelerate the pace of digital, networked and intelligenttransformation of the manufacturing industry to reduce the consumption of manpower, materials and energy. TheCompany will strengthen the development of high-end market and overseas market, actively respond to market changes,continuously deepen market exploitation, refine market layout, increase the application of new products and newtechnologies, improve service capability, give full play to quality, technology and brand advantages, and at the same time,maintain the advantageous position of the Company through market-oriented extension of industrial chain.C. In the float glass segment, the Company will persist in pursuing differentiated operations, refining product structure,and boosting the share of high-value-added offerings. Additionally, through technological upgrades, the Company aimsto enhance production efficiency and lower manufacturing costs, thereby consistently enhancing its competitive edge inthe industry.D. In the electronic glass and display segment, the Company will continue to strengthen CSG’s brand presence forelectronic glass, build a solid foundation for medium- and high-end products, enhance customer recognition and stabilisethe high-end market share. In addition, it will further strengthen the R&D and innovation of new technologies, newproducts and new applications, constantly narrow the gap from international peers, maintain technical leading advantagein China, and at the same time, intensify efforts to explore new market applications, broaden development directions inthe industry and explore more applications on the market.E. In the solar energy segment, the Company will strengthen the integration of resources across the industry chain, payattention to the price trend, supply-demand relationship and terminal demands in upstream and downstream procurementand sales, increase R&D investment, strengthen operation management, and maintain corporate competitiveness in marketsegments; keep an eye on market changes, rationally adjust inventories, vigorously carry out cost reduction and efficiencyincrease activities, implement energy saving and cost control measures, and timely upgrade and replace the equipment toimprove production efficiency and ensure the Company’s benefits; and ensure continuous leadership industry-widethrough the technological and cost advantages of new production lines and the efficient and professional businesscapabilities of the team.
③ Risk of fluctuation of foreign exchange rate: At present, nearly 8.55% of the operating revenue of the Company isfrom overseas, and in the future, the Company will further develop overseas business. Therefore, the fluctuation ofexchange rate will bring certain risk to the operation of the Company. To cope with such risk, the Company will settle
exchange in a timely manner, and use safe and effective risk evading instrument and product to relatively lock exchangerate, thus reducing the risk caused by fluctuation of exchange rate.XII. Reception of research, communication and interview
□Applicable √Not applicable
No reception of research, communication, interview and other activities occurred during the reporting period.
XIII. Implementation of the “Quality and Earnings Dual Improvement” Action Plan
Indicate whether the Company has disclosed the “Quality and Earnings Dual Improvement” Action Plan.
□ Yes √ No
Section IV. Corporate Governance
1.Basic Situation of Corporate Governance
In strict compliance with the requirements of the relevant laws and regulation including The Company Law, SecuritiesLaw and Rule of Governance for Listed Company, the Company has been putting efforts in improving the corporategovernance, strengthening management of information disclosure, regulating operation activities and establishing amodern corporate system. At present, the system for corporate governance of the Company is basically sound, operationis regulated, corporate governance is consummated, which accord with the requirements of relevant documents oncorporate governance of listed company issued by CSRC.According to the "Company Law" and other relevant laws and regulations and the "Articles of Association", the Companyhas established and improved a relatively standardized corporate governance structure, and formed a decision-makingand operation management system with the shareholders' meeting, the board of directors, the board of supervisors and theCompany's management as the main structure. The power organs, decision-making bodies, supervision bodies andmanagers have clear rights and responsibilities, perform their respective duties and effectively monitor and balance, andperform various duties stipulated in the "Company Law" and "Articles of Association" in accordance with the law.According to the "Articles of Association" and other relevant corporate governance regulations, the Company hasformulated the "Procedure Rules for Shareholders' Meeting", "Procedure Rules for the Board of Directors", "ProcedureRules for the Supervisory Committee", "General Manager's Work Rules" and other relevant systems, which provides aninstitutional guarantee for the standardized operation of the corporate governance structure of the Company.The Company's "Three Committees" (General Meeting of Shareholders, Board of Directors and Board of Supervisors)operate in a standardized manner, and the procedures for convening and convening meetings comply with relevantregulations. The current directors, supervisors, and senior management are able to actively and effectively fulfill relevantresponsibilities and obligations. Independent directors have put forward opinions or suggestions on the company'sdevelopment decisions. The Company respects and listens to the opinions and suggestions of independent directors, andimplements them in accordance with the final resolutions of the board of directors and the shareholders' meeting, playinga positive role in safeguarding the interests of the company and small and medium-sized shareholders, At the same time,the Company also provides sufficient protection for the performance of independent directors and supervisors. The Boardof Directors has established four special committees, namely, the Strategy Committee, the Audit Committee, theNomination Committee, and the Remuneration and Evaluation Committee, to assist the Board of Directors in performingrelevant functions and provide professional suggestions and opinions for the Board of Directors' decision-making. TheBoard of Directors and the Board of Supervisors of the Company report to the General Meeting of Shareholders on theperformance of their duties by directors and supervisors, and the independent directors make a debriefing report to theGeneral Meeting of Shareholders. The senior management personnel have a clear division of labor, clear responsibilitiesand authorities, and operate in compliance with laws and regulations.In strict accordance with the requirements of the Listing Rules of Shenzhen Stock Exchange and other relevant laws andregulations, the Company earnestly performs the obligation of information disclosure to ensure the authenticity, accuracy,integrity and timeliness of information disclosure. The Company earnestly fulfills its information disclosure obligationsin strict accordance with the requirements of the Shenzhen Stock Exchange Listing Rules and other relevant laws andregulations to ensure the truthfulness, accuracy, completeness and timeliness of information disclosure. ShanghaiSecurities News, Securities Daily and Juchao Website (www.cninfo.com.cn) are designated media for the Company'sinformation disclosure to ensure that all shareholders of the Company have equal access to the Company's businessinformation. The Company has established the Information Disclosure Management System and promptly improved it in
accordance with newly issued laws and regulations, clarified the standards of insider information, and established insideinformation insider registration system and record management system. In order to further strengthen the Company'sinternal information disclosure control, enhance the disclosure consciousness of relevant personnel, and improve thequality of corporate information disclosure, in 2016, the Company set up information Disclosure Committee, andformulate Rules for the implementation of the information disclosure Committee. During the report period, the Companydisclosed information with facticity, completeness, timeliness and fairness, strictly fulfilled the responsibilities andobligations of information disclosure of listed companies to ensure that investors are able to keep abreast of the Company'soperation and development strategies. There was no regulatory punishment caused by information disclosure in the reportperiod. Meanwhile, the Company delivered the Inside Information Insider Table to Shenzhen Stock Exchange whensubmitting periodic reports.The Company has seriously implemented the requirements of the relevant regulatory to cash dividends. The Companyformulated the Return plan for Shareholders of CSG Holding Co., Ltd. in the Next Three Years (2022-2024) according torelevant regulations of the Notice of Further Implementation of Cash Dividends of the Listed Companies (ZJF No.: [2012]
37) and the Regulatory Guidelines of Listed Companies No. 3-Cash Dividends of Listed Companies issued by ChinaSecurities Regulatory Commission, further improved the Company’s decision-making and supervision mechanism fordistribution of profits, and protected the interests of investors.During the report period, it did not exist that the Company provided the undisclosed information to the largest shareholder.And it did not exist that non-operating fund of listed Company was occupied by the largest shareholder and its affiliatedenterprises.Whether the actual condition of corporate governance is materially different from the laws, administrative regulationsand the provisions on the governance of listed companies issued by the CSRC
□Yes √ No
The actual condition of corporate governance is not materially different from laws, administrative regulations and theprovisions on the governance of listed companies issued by the CSRC.
II. Independency of the Company relative to the largest shareholder in aspect of businesses,personnel, assets, organization and finance
During the report period, the Company has been absolutely independent in business, personnel, assets, organization andfinance from its largest shareholder. The Company has an independent and complete business system and independentmanagement capability.
1. In terms of business: The Company owns independent purchase and supply system of the raw resources, completeproduction systems, independent sale system and customers. The Company is completely independent from the largestshareholder in business. The largest shareholder and its subsidiaries do not engage any identical business or similarbusiness as the Company.
2. In terms of personnel: The Company established integrated management system of labor, personnel, salaries and thesocial security, which were absolutely independent from its holding shareholder’s. Personnel of the managers, person incharge of the financial and other executive managers are obtained remuneration from the Company since on duty in theCompany, and never received remuneration or take part-time jobs in the largest shareholder’ company and otherenterprises controlled by the largest shareholder. The recruitment and dismissal of Directors are conducted through legalprocedure and the manager has been appointed or dismissed by Board of Directors. The Board of Directors and theShareholders’ General Meeting have not received any interference of decisions on personnel appointment and removalfrom the largest shareholder.
3. In terms of asset: the Company is able to operate business independently and enjoys full control over the production
system, auxiliary production system and facilities, land use right, industry property and non-patent technology owned orused by the Company. The largest shareholder has never occupied, damaged or intervened to operation on these assets.
4. In terms of organization: The Company possessed sound corporate governance structure, established Shareholders’General Meeting, Board of Directors, Supervisory Board, appointed Senior management, and fixed related functiondepartments. The Company had been totally independent from its largest shareholder in organization structure. TheCompany has its own office and production sites that are different from those of the largest shareholder. The largestshareholder has not in any way affected the independence of the Company's operation and management.
5. In terms of finance: The Company has set up independent financial department, established independent accountingcalculation system and financial management system (included management system of its subsidiaries). The financialpersonnel of the Company didn’t take part-time jobs in units of largest shareholder or its subordinate units. The Companyhas independent bank accounts, separated from the largest shareholder. The Company is independent taxpayer, paid taxesindependently according the laws and didn’t pay mixed taxes with the largest shareholder. The financial decision-makingof the Company was independent, and the use and management of funds were independent. The Company never offeredguarantee to their largest shareholder and its subordinate units and other related party. The largest shareholder and itsrelated have never occupied or disguisedly occupied the capital of the Company.III. Horizontal competition
□ Applicable √ Not applicable
IV. Information on the annual general meeting and extraordinary general meeting heldduring the report period
1. The General Meeting of Shareholders during the report period
| Session of meeting | Type | Ratio of investor participation | Meeting date | Date of disclosure | Meeting resolution |
| The First Extraordinary General Shareholders’ Meeting of 2023 | Extraordinary General Shareholders’ Meeting | 24.34% | March 16, 2023 | March 17, 2023 | Announcement on Resolutions of the First Extraordinary General Shareholders’ Meeting of 2023（Announcement No.: 2023-005） |
| Annual General Shareholders’ Meeting of 2022 | Annual General Shareholders’ Meeting | 24.92% | June 28, 2023 | June 29, 2023 | Announcement on Resolutions of Annual General Shareholders’ Meeting of 2022（Announcement No.: 2023-023） |
| The Second Extraordinary General Shareholders’ Meeting of 2023 | Extraordinary General Shareholders’ Meeting | 25.35% | October 17, 2023 | October 18, 2023 | Announcement on Resolutions of the Second Extraordinary General Shareholders’ Meeting of 2023（Announcement No.: 2023-034） |
| The Third Extraordinary General Shareholders’ Meeting of 2023 | Extraordinary General Shareholders’ Meeting | 24.14% | November 29, 2023 | November 20, 2023 | Announcement on Resolutions of the Third Extraordinary General Shareholders’ Meeting of 2023（Announcement No.: 2023-039） |
2. The preference shareholders whose voting rights have been restored request the convening of anextraordinary general meeting
□ Applicable √ Not applicable
V. Directors, supervisors and senior executives
1. Basic information
| Name | Sex | Age | Title | Working status | Start dated of office term | End date of office term | Shares held at period-begin (Share) | Amount of shares increased in this period (Share) | Amount of shares decreased in this period (Share) | Other changes (share) | Shares held at period-end (Share) | Reason for increase or decrease of shares |
| Chen Lin | Female | 52 | Chairman of the Board | Currently in office | 2016/11/19 | 1,623,065 | 1,623,065 | |||||
| Shen Chengfang | Male | 58 | Director | Currently in office | 2022/08/03 | |||||||
| Zhu Qianyu | Female | 49 | Independent Director | Currently in office | 2019/04/10 | |||||||
| Zhang Min | Male | 47 | Independent Director | Currently in office | 2022/11/25 | |||||||
| Shen Yunqiao | Male | 48 | Independent Director | Currently in office | 2023/03/16 | |||||||
| Cheng Jinggang | Male | 43 | Director | Currently in office | 2020/05/21 | |||||||
| Yao Zhuanghe | Male | 65 | Director | Currently in office | 2020/05/21 | |||||||
| Cheng Xibao | Female | 42 | Director | Currently in office | 2016/01/21 | |||||||
| Li Jianghua | Male | 47 | Chairman of the Supervisory Board, Employee Supervisor | Currently in office | 2019/03/27 | |||||||
| Meng Lili | Female | 46 | Supervisor | Currently in office | 2020/05/21 | |||||||
| Dai Pingsheng | Male | 42 | Employee Supervisor | Currently in office | 2021/07/08 | |||||||
| He Jin | Male | 52 | Secretary of the Party Committee,Executive Vice President | Currently in office | 2022/05/16 | 897,600 | 897,600 | |||||
| Acting CEO | Currently in office | 2022/08/15 | ||||||||||
| Wang Wenxin | Female | 46 | Vice President | Currently in office | 2022/05/16 | 154,600 | 154,600 | |||||
| Chief Financial Officer | Currently in office | 2022/05/16 | ||||||||||
| Chen Chunyan | Female | 42 | Secretary of the Board | Currently in office | 2022/09/26 | 49,271 | 49,271 | |||||
| Zhu Guilong | Male | 60 | Independent Director | Leaving office | 2017/05/02 | 2023/03/16 | ||||||
| Total | -- | -- | -- | -- | -- | -- | 2,724,536 | 0 | 0 | 0 | 2,724,536 | -- |
During the report period, whether there was any resignation of directors and supervisors and dismissal of seniorexecutives during their terms of office
√ Yes □ No
The Board of Directors of the Company received a written resignation report submitted by Independent Director Mr. ZhuGuilong on 23 November 2022. Mr. Zhu Guilong resigned as the Company’s Independent Director due to personal careerreasons. Mr. Zhu Guilong’s resignation report took effect on 16 March 2023.
Changes in directors, supervisors and senior executives of the company
√Applicable □ Not applicable
| Name | Position | Type | Date | Reason |
| Shen Yunqiao | Independent Director | Be elected | 2023-03-16 | By election of Independent Director |
| Zhu Guilong | Independent Director | Post leaving | 2023-03-16 | Resignation voluntarily |
2. Post-holding
Major professional backgrounds and working experience of directors, supervisors and senior executives and their majorresponsibilities in the Company at presentChen Lin: At present, she is Chairman of the Supervisory Committee of Foresea Life Insurance Co., Ltd. and Chairmanof the Board of the Company.Shen Chengfang: He took the posts of Chief Actuary of Ping An Life Insurance Company of China, Ltd. and ChiefActuary and Deputy General Manager of Foresea Life Insurance Co., Ltd. At present. he is General Manager andExecutive Director of Foresea Life Insurance Co., Ltd., and Director of the Company.Zhu Qianyu: At present, she is an associate professor and a supervisor of masters at the Renmin University of China anda researcher at the Institute for Rural Economy and Finance, Institute for National Development and Strategies, andInstitute for Carbon Peak and Neutrality of the Renmin University of China. She has undertaken more than ten researchprojects funded by the National Natural Science Foundation of China, the National Social Science Fund of China, theSocial Science Fund of Beijing, the National Development and Reform Commission, the Ministry of Science andTechnology of the People’s Republic of China, and the Ministry of Industry and Information Technology of the People’sRepublic of China, and had over 50 papers published by foreign SSCI and SCI journals and domestic journals.Additionally, her scientific research achievements won the first, second, and third prizes for social science researchachievements from the National Ethnic Affairs Commission of the People’s Republic of China, the third prize for excellentresults from the National Bureau of Statistics, the second prize in the 13th Beijing Outstanding Achievement Award inPhilosophy and Social Science, and the third prize in the Award for Excellent Achievements in Scientific Research inInstitutes of Higher Education of the Ministry of Education (Humanities and Social Science). She is serving as a projecttraining and evaluation expert at the World Bank, the National Rural Revitalization Administration, and the Head Officeof Agricultural Bank of China, and a reviewer of the National Natural Science Foundation of China. She is alsoIndependent Director of Chongqing Brewery Co., Ltd., Bank of Guiyang Co., Ltd., and the Company.Zhang Min: He served as a lecturer, an associate professor, a supervisor of doctors, and Deputy Director of the Departmentof Accounting of Renmin Business School at the Renmin University of China, as well as Independent Director of BeijingSPC Environment Protection Tech Co., Ltd. At present, he is a professor, a supervisor of doctors, and Director of theDepartment of Accounting of Renmin Business School at the Renmin University of China. Concurrently, he isIndependent Director of SDIC Capital Co., Ltd., BYD Co., Ltd., and the Company.Shen Yunqiao: He served as an assistant professor at the Faculty of Law, Macau University of Science and Technology, alegal adviser for Guangzhou Nansha New Zone and the China (Guangdong) Pilot Free Trade Zone Nansha Area, andIndependent Director of Guangdong Delian Group Co., Ltd. At present, he is an associate professor and a supervisor ofdoctors at the Faculty of Law and Director of the Research Centre for Arbitration and Dispute Resolution, MacauUniversity of Science and Technology. He is also Independent Director of the Company. Concurrently, he is IndependentDirector of Shenzhen Utimes Intelligent Equipment Company Limited and Hunan Nucien Pharmaceutical Co., Ltd.,Director of the Commercial Law Institute of China Law Society and Legislative Council Institute of China Law Society,an off-campus supervisor of postgraduates and a researcher of the Asia-Pacific Institute of Law, Renmin University ofChina, Deputy Director of the Asia-Pacific Arbitration Research Committee of the Asia-Pacific Institute of Law, Renmin
University of China, an export of the Expert Pool for Offshore Services of Pazhou Artificial Intelligence and DigitalEconomy Law Identification and Commercial Mediation Centre, Haizhu District, Guangzhou, Deputy Secretary Generalof the Law Committee of the Council for the Promotion of Guangdong-Hong Kong-Macao Cooperation, a member of the100-Member Group of the Shandong Foreign Arbitration Service of the Department of Justice, Shandong, Vice Chairmanof Macau Association for Legal Professionals, an arbitrator of the Consumer Mediation and Arbitration Centre, MacaoSAR Government Consumer Council, and Vice Chairman of Renmin University of China Alumni Association of Macao.Moreover, he is an arbitrator of more than 20 arbitration institutions, including the China International Economic andTrade Arbitration Commission, Beijing Arbitration Commission, Shanghai International Arbitration Centre, ShanghaiArbitration Commission, Shenzhen Court of International Arbitration, Guangzhou Arbitration Commission, Zhuhai Courtof International Arbitration, Foshan Arbitration Commission, Hainan International Arbitration Court, Nanjing ArbitrationCommission, Qingdao Arbitration Commission, and Xi’an Arbitration Commission.Cheng Jinggang: He took the posts of Senior Credit Analyst of the Fixed Income Department of Funde Sino Life InsuranceCo., Ltd. and Senior Manager of the Credit Evaluation Department of Sino Life Asset Management Co., Ltd. At present,he is Joint Director of the Asset Management Centre of Foresea Life Insurance Co., Ltd. and Director of the Company.Yao Zhuanghe: He took the posts of Deputy Director of the Department of Food Science and Engineering at South ChinaUniversity of Technology, Deputy General Manager and General Manager of Guangdong United Food Enterprise Centre,Director of Guangdong Yuehua International Trade Group, Deputy General Manager of Guangdong Guangye EconomicDevelopment Group, Director and General Manager of Guangdong Guangye Investment Consulting Co., Ltd., Directorand Deputy Party Committee Secretary of Guangdong Guangye Environmental Construction Group (former GuangdongGuangye Real Estate Group). At present, he is Director of the Company.Cheng Xibao: She took the posts of Manager, Vice President, and Executive Vice President of the Financial Departmentand President Assistant, Vice President, and Senior Vice President of Shenzhen Baoneng Investment Group Co., Ltd.,Director of Foresea Life Insurance Co., Ltd., Supervisor of Guizhou Baoneng Automobile Co., Ltd., Vice President ofBaoneng Motor Group Co., Ltd., and Executive Vice President of Baoneng City Development and Construction GroupCo., Ltd. At present, she is Senior Vice President of Shenzhen Baoneng Investment Group Co., Ltd., Supervisor ofXinjiang Qianhai United Property & Casualty Insurance Co., Ltd., and Director of Baoneng Motor Group Co., Ltd., QorosAutomobile Co., Ltd., Shenzhen Baoneng Travel Co., Ltd., and the Company.Li Jianghua: He took the posts of Assistant General Manager of the Operation Service Department and Deputy GeneralManager of the Public Development Department of the Information Management Centre of Foresea Life Insurance Co.,Ltd., Deputy General Manager of the IT Department of Xinjiang Qianhai United Property & Casualty Insurance Co., Ltd.,and General Manager of the Integrated Financial Development Department of the Information Management Centre ofForesea Life Insurance Co., Ltd. At present, he is Chairman of the Supervisory Committee and Director of the InformationManagement Department of the Company.Meng Lili: At present, she is Deputy Director of the Human Resources Centre, General Manager of the Office of theBoard of Directors and Employee Supervisor of Foresea Life Insurance Co., Ltd., and Supervisor of the Company.Dai Pingsheng: He took the posts of Financial Manager of Dongguan CSG Solar Glass Co., Ltd., Deputy Manager,Assistant Director and Deputy Director of the Financial Management Department of CSG, and Vice President of theArchitectural Glass Division of CSG. At present, he is Assistant President, Director of the Strategic InvestmentDepartment, and Employee Supervisor of the Company.He Jin: He took the posts of General Manager of Shenzhen CSG Float Glass Co., Ltd., Vice President of Float GlassDivision, General Manager of Dongguan CSG Solar Glass Co., Ltd., General Manager of Chengdu CSG Glass Co., Ltd.,General Manager of Qingyuan CSG Energy Saving New Materials Co., Ltd., Assistant President of the Company andPresident of Flat Glass Division, and Vice President of the Company. At present, he is Secretary of the Party Committee,Acting Chief Executive Officer, Executive Vice President, and Chairman of the Management Committee of the Company.
Wang Wenxin: She took the posts of Assistant President, Director of the Financial Management Department, andExecutive Vice President of CSG. At present, she is Vice President and Chief Financial Officer of the Company.Chen Chunyan: She took the posts of Director of the Stock Affairs Department, Stock Affairs Manager, and AssistantDirector of the Office of the Board of Directors of CSG. At present, she is Secretary of the Board of Directors and Directorof the Office of the Board of Directors of the Company.Post-holding in shareholder’s unit
√Applicable □ Not applicable
| Name | Name of shareholder’s unit | Position in shareholder’s unit | Start dated of office term | End date of office term | Received remuneration from shareholder’s unit or not |
| Chen Lin | Foresea Life Insurance Co., Ltd. | Chairman of Supervisory Board | May 2012 | Yes | |
| Shen Chengfang | Foresea Life Insurance Co., Ltd. | General Manager | August 2018 | Yes | |
| Executive Director | July 2019 | ||||
| Cheng Jinggang | Foresea Life Insurance Co., Ltd. | Deputy Director of the Asset Management Center | April 2012 | February 2023 | Yes |
| Co-director of the Asset Management Center | February 2023 | ||||
| Meng Lili | Foresea Life Insurance Co., Ltd. | Deputy Director of Human Resources Center | January 2021 | Yes | |
| General Manager of the Office of the Board of Directors | July 2019 | ||||
| Employee Supervisor | June 2016 | ||||
| Note of post-holding in shareholder’s unit | N/A | ||||
Post-holding in other units
√ Applicable □ Not applicable
| Name | Unit name | Positions in other units | Date of commencement of office term | Date of termination of office term | Receive remuneration from other units or not |
| Zhu Qianyu | Renmin University of China | Associate Professor | March 2010 | Yes | |
| Chongqing Brewery Co., Ltd. | Independent Director | May 2022 | Yes | ||
| Kingfa SCI.&TECH. Co., Ltd. | Independent Director | January 2021 | December 2023 | Yes | |
| Bank of Guiyang Co., Ltd. | Independent Director | February 2024 | Yes | ||
| Zhang Min | Renmin University of China | Professor | June 2010 | Yes | |
| BYD Co., Ltd. | Independent Director | September 2020 | Yes | ||
| SDIC Capital Co., Ltd. | Independent Director | September 2019 | Yes | ||
| Beijing SPC Environment Protection Tech Co., Ltd. | Independent Director | October 2019 | May 2023 | Yes | |
| Shen Yunqiao | Macau University of Science and Technology | Associate Professor | July 2015 | Yes | |
| Shenzhen Utimes Intelligent Equipment | Independent | January 2022 | Yes |
| Co.,ltd. | Director | ||||
| Hunan Nucien Pharmaceutical Co., Ltd. | Independent Director | June 2023 | Yes | ||
| Guangdong Delian Group Co., Ltd. | Independent Director | May 2021 | September 2023 | Yes | |
| Cheng Xibao | Shenzhen Baoneng Investment Group Co., Ltd. | Senior Vice President | November 2020 | Yes | |
| Baoneng Motor Group Co., Ltd. | Director | December 2017 | No | ||
| Vice President | September 2022 | June 2023 | No | ||
| Xinjiang Qianhai United Property & Casualty Insurance Co., Ltd. | Supervisor | September 2016 | No | ||
| Qoros Automobile Co., Ltd. | Director | December 2017 | No | ||
| Shenzhen Baoneng Travel Co., LTD. | Director | September 2019 | No | ||
| Note of post-holding in other units | N/A | ||||
Punishment of securities regulatory authority in the last three years to the Company’s current and retired directors,supervisors and senior management during the report period
□ Applicable √ Not applicable
3. Remuneration of directors, supervisors and senior executives
Decision-making procedures, recognition basis and payment for directors, supervisors and senior executives
1. Decision-making procedures: The allowances for independent directors, external directors from non-shareholder’s unitare planned and proposed by the Remuneration & Assessment Committee of the Board and approved by the Shareholders’General Meeting after deliberation of the Board. Remuneration for senior executives is proposed by the Remuneration &Assessment Committee of the Board and decided by the Board after discussion.
2. Confirmation basis of remuneration: The allowances for independent directors and external directors are confirmedbased on industry standards and real situation of the Company. The remuneration for senior executives implementsfloating reward mechanism with reference to basic salary and business performance. Bonus for performance rewards iswithdrawal by proportion quarterly according to return on equity and based on the total net profit after taxation.
3. Actual remuneration payment: The allowances for each of the Company’s independent directors, external director fromnon-shareholder’s unit are RMB 0.3 million per year, paid by actual month of service. The total remuneration for directors,supervisor and senior executives in the report period was RMB 18.2805 million.Remuneration of directors, supervisors and senior executives of the company during the report period
Unit: RMB 0,000
| Name | Sex | Age | Title | Post-holding status | Total remuneration obtained from the Company before taxation | Received remuneration from related party of the Company or not |
| Chen Lin | Female | 52 | Chairman of the Board | Currently in office | 0 | Yes |
| Shen Chengfang | Male | 58 | Director | Currently in office | 0 | Yes |
| Zhu Qianyu | Female | 49 | Independent Director | Currently in office | 30 | No |
| Zhang Min | Male | 47 | Independent Director | Currently in | 30 | No |
| office | ||||||
| Shen Yunqiao | Male | 48 | Independent Director | Currently in office | 23.75 | No |
| Cheng Jinggang | Male | 43 | Director | Currently in office | 0 | Yes |
| Yao Zhuanghe | Male | 65 | Director | Currently in office | 30 | No |
| Cheng Xibao | Female | 42 | Director | Currently in office | 0 | Yes |
| Li Jianghua | Male | 47 | Chairman of the Supervisory Board, Employee Supervisor | Currently in office | 212.21 | No |
| Meng Lili | Female | 46 | Supervisor | Currently in office | 0 | Yes |
| Dai Pingsheng | Male | 42 | Employee Supervisor | Currently in office | 190.68 | No |
| He Jin | Male | 52 | Secretary of the Party Committee,Vice president，executive vice president | Currently in office | 806.39 | No |
| Wang Wenxin | Female | 46 | Vice President, Chief Financial Officer | Currently in office | 381.18 | No |
| Chen Chunyan | Female | 42 | Secretary of the Board | Currently in office | 117.59 | No |
| Zhu Guilong | Male | 60 | Independent Director | Leaving office | 6.25 | No |
| Total | -- | -- | -- | -- | 1,828.05 | -- |
Other information note
□ Applicable √ Not applicable
VI. Directors’ performance of duties during the report period
1. Board of directors in the report period
| Session | Meeting date | Date of disclosure | Resolution of the meeting |
| The Interim Meeting of the Ninth Board of Directors | February 27, 2023 | February 28, 2023 | For details, please refer to Juchao Website (www.cninfo.com.cn): “Announcement on Resolution of the Interim Meeting of the Ninth Board of Directors” (Announcement No.: 2023-001) |
| The 11th Meeting of the Ninth Board of Directors | April 24, 2023 | April 26, 2023 | For details, please refer to Juchao Website (www.cninfo.com.cn): “Announcement on Resolution of the 11th Meeting of the Ninth Board of Directors” (Announcement No.: 2023-012) |
| The Interim Meeting of the Ninth Board of Directors | April 24, 2023 | April 26, 2023 | For details, please refer to Juchao Website (www.cninfo.com.cn): “Announcement on Resolution of the Interim Meeting of the Ninth Board of Directors” (Announcement No.: 2023-019) |
| The Interim Meeting of the Ninth Board of Directors | June 5, 2023 | June 6, 2023 | For details, please refer to Juchao Website (www.cninfo.com.cn): “Announcement on Resolution of the Interim Meeting of the Ninth Board of Directors” (Announcement No.: 2023-021) |
| The 12th Meeting of the Ninth Board of Directors | August 25, 2023 | August 29, 2023 | For details, please refer to Juchao Website (www.cninfo.com.cn): “Announcement on Resolution of the 12th Meeting of the Ninth Board of Directors” |
| (Announcement No.: 2023-028) | |||
| The Interim Meeting of the Ninth Board of Directors | August 29, 2023 | August 31, 2023 | For details, please refer to Juchao Website (www.cninfo.com.cn): “Announcement on Resolution of the Interim Meeting of the Ninth Board of Directors” (Announcement No.: 2023-030) |
| The Interim Meeting of the Ninth Board of Directors | September 27, 2023 | September 29, 2023 | For details, please refer to Juchao Website (www.cninfo.com.cn): “Announcement on Resolution of the Interim Meeting of the Ninth Board of Directors” (Announcement No.: 2023-031) |
| The Interim Meeting of the Ninth Board of Directors | October 27, 2023 | - | The Third Quarter Report 2023 was reviewed and approved |
| The Interim Meeting of the Ninth Board of Directors | November 13, 2023 | November 14, 2023 | For details, please refer to Juchao Website (www.cninfo.com.cn): “Announcement on Resolution of the Interim Meeting of the Ninth Board of Directors” (Announcement No.: 2023-036) |
2. Attendance of directors at the board of directors and shareholders’ meeting
| Attendance of directors at the board of directors and shareholders' meeting | |||||||
| Name of director | Number of board meetings that should be attended in this report period | Number of Spot Attendances | Number of Meetings Attended by Communication | Number of attendances of board meeting by proxy | Number of absence | Failure to personally attend board meetings successively twice | Number of attendance of General Meeting |
| Chen Lin | 9 | 2 | 7 | 0 | 0 | No | 4 |
| Shen Chengfang | 9 | 1 | 8 | 0 | 0 | No | 4 |
| Zhu Qianyu | 9 | 1 | 8 | 0 | 0 | No | 4 |
| Zhang Min | 9 | 1 | 8 | 0 | 0 | No | 4 |
| Shen Yunqiao | 8 | 1 | 7 | 0 | 0 | No | 3 |
| Cheng Jinggang | 9 | 1 | 8 | 0 | 0 | No | 4 |
| Yao Zhuanghe | 9 | 0 | 9 | 0 | 0 | No | 4 |
| Cheng Xibao | 9 | 0 | 9 | 0 | 0 | No | 4 |
| Zhu Guilong | 1 | 0 | 1 | 0 | 0 | No | 0 |
Note to failure to attend the board meeting successively twiceNot applicable
3. Objections raised by directors on matters related to the Company
Whether directors raised any objection to the relevant matters of the Company
√ Yes □ No
| Name of the director | Matter to which the director objected | Details of the objection |
| Cheng Xibao | The Work Report of the Board of Directors for 2022, the 2022 Annual Report and Summary, the Financial Final Report 2022, the Proposal on Profit Distribution for 2022, the Internal Control Evaluation Report 2022, and the Proposal on the Development of | A negative vote was cast. For reasons, please refer to the Announcement on Resolution of the 11th Meeting of the Ninth Board of Directors (Announcement No.: 2023-012) dated April 26, |
| Asset Pool Business in 2023 reviewed at the 11th meeting of the Ninth Board of Directors on April 24, 2023. | 2023 at http://www.cninfo.com.cn. | |
| Cheng Xibao | The First Quarter Report 2023 reviewed at the interim meeting of the Ninth Board of Directors on April 24, 2023. | A negative vote was cast. For reasons, please refer to the Announcement on Resolution of the Interim Meeting of the Ninth Board of Directors (Announcement No.: 2023-019) dated April 26, 2023 at http://www.cninfo.com.cn. |
| Explanations of the directors for their objections | For details, please refer to the announcements disclosed by the Company at http://www.cninfo.com.cn. | |
4. Other notes to duty performance of directors
Whether the directors’ suggestions on the Company have been adopted
√Yes □ No
Notes to the adoption of or a failure to adopt directors’ suggestions on the CompanyDuring the report period, the current directors of the Company strictly followed the Company Law, Securities Law,Shenzhen Stock Exchange Listing Rules, Guidelines for Self-discipline and Supervision of Listed Companies No. 1-Standardized Operation of Listed Companies on the Main Board, Measures for the administration of independent directorsof listed companies and other laws and regulations, as well as the Articles of Association and other relevant systems, toattend the Board of Directors and General Meeting of Shareholders of the Company, conscientiously perform duties, andprovide comments or suggestions on decisions for the Company’s development. The Company respected and listened todirectors’ comments and suggestions and implemented them according to the final resolutions of the Board of Directorsand the General Meeting of Shareholders.VII. Duty performance of special committees under the Board of Directors in the report period
| Name of the Committee | About the members | Number of meetings held | Meeting date | Meeting content | Important comments and suggestions proposed | Other duty performance | Specific objections (if any) |
| Strategy Committee | Chairman of the Committee: Chen Lin. Committee members: Shen Chengfang, Cheng Jinggang, Shen Yunqiao, and Zhu Qianyu. | 1 | April 14, 2023 | The proposals Proposal on Withdrawing Provisions for Asset Impairment, Proposal on Profit Distribution for 2022, Proposal on the Development of Asset Pool Business in 2023, and Proposal for the 2023 Guarantee Plan were reviewed and approved. | Approved. | ||
| Audit Committee | Committee members: Shen Yunqiao, Zhu Qianyu, Chen Lin, and Cheng Xibao. | 5 | April 14, 2023 | The Proposal on the Changes in Accounting Policies, the Financial Final Report 2022, and the Internal Control Evaluation Report 2022 were reviewed and approved. | Approved. | ||
| April 21, 2023 | Matters on the First Quarter | Approved. |
| Report 2023 was reviewed and approved. | |||||||
| August 15, 2023 | Matters on the Semi-annual Financial Report 2023 was reviewed and approved. | Approved. | |||||
| October 24, 2023 | Matters on the Third Quarter Report 2023 was reviewed and approved. | Approved. | |||||
| November 10, 2023 | Matters on the Appointment of the Audit Institution of 2023 was reviewed and approved. | Approved. | |||||
| Remuneration and Assessment Committee | Chairman of the committee: Shen Yunqiao. Committee members: Zhang Min, Zhu Qianyu, Chen Lin, and Cheng Jinggang. | 1 | April 14, 2023 | The Matters on Auditing the Remuneration of Directors, Supervisors and Senior Executives of CSG in 2022 was reviewed and approved. | Approved. | ||
| Nomination Committee | Committee members: Zhu Guilong, Zhang Min, Chen Lin, and Shen Chengfang. | 2 | February 23, 2023 | Matters on the By-election of Independent Director for the Ninth Board of Directors of the Company was reviewed and approved. | Approved. | ||
| Committee members: Shen Yunqiao, Zhang Min, Chen Lin, and Shen Chengfang. | April 14, 2023 | The Work of Directors in 2022 was reviewed and approved. | Approved. |
VIII. Work Summary of the Supervisory Committee
Did the Supervisory Committee find any risk involved in performing the supervision activities in the report period
□ Yes √ No
The Supervisory Committee had no objection to the supervision matters during the report period.
IX. Employees
1. Number, Professional Composition and Education Background of Employees
| Number of employees in the parent company (person) | 476 note |
| Number of employees in major subsidiaries of the Company (person) | 14,185 |
| Total number of employees (person) | 14,661 |
| Total number of employees received salaries in the period (person) | 14,661 |
| Number of retired employees whose costs borne by the parent company and its main subsidiaries (person) | 0 |
| Professional composition | |
| Category of profession composition | Number of profession composition (person) |
| Production personnel | 9,976 |
| Salesman | 822 |
| Technician | 2,558 |
| Financial personnel | 157 |
| Administrative personnel | 1,148 |
| Total | 14,661 |
| Education background | |
| Category of education background | Number (person) |
| Doctor | 5 |
| Master | 174 |
| Undergraduate | 3,492 |
| Junior college | 2,801 |
| Degree below junior college | 8,189 |
| Doctor | 14,661 |
Note: Among them, there are 278 employees sent by the headquarters to the subsidiaries.
2. Staff remuneration policy
In 2023, the Company continued to emphasize the principle of “Performance Orientation” in compensation management,strengthened the application of organizational performance results and individual performance results, and advocated thatsalary incentives should be inclined to high-performing organizations and high-performing individuals, to improve thework enthusiasm of employees, thereby enhancing overall organizational performance and achieving business objectives.
3. Staff training plan
The Company has always attached great importance to the talent team construction and staff training and development.Within the Group's Human Resources Department, dedicated training modules have been established, and dedicated staffand funds are earmarked to support the growth and literacy enhancement of employees.The Company has established training and development systems for employees at different levels, including the"Navigation Series" designed for management across different tiers and the "Star Plan" aimed at nurturing talent fromcampus recruits to elites. Additionally, it has developed personalised training and development programmes for diverseprofessionals, with adjustments made to the training plan according to the business plan every year. This approach aimsto stimulate the drive of employees, enhance the competitiveness of the enterprise, and provide a strong guarantee for thedevelopment of CSG Group.In 2023, in response to the objective of "enhancing refined and specialised management and promoting cost reductionand efficiency improvement management, supply chain management and lean management to ensure the achievement ofthe business and construction targets for 2023" as outlined in the business plan, the Company planned and implementedthe "Lean Production Management" training series. These sessions targeted heads of subsidiaries, heads responsible forproduction, and heads of production departments. To ensure widespread influence and implementation, all third-phasetrainees were mandated to participate in the train-the-trainer sessions, resulting in approximately 1,000 participants intotal. This initiative effectively promoted the adoption of lean production across the Group.In 2024, in addition to the continuation of the "Navigation Series", "Star Plan" and specialised training programmes, theCompany will place particular emphasis on nurturing elites in pivotal roles as well as technical talent. It will also continueto deepen the scientific and systematic operation of training and development, so as to energise, promote managementand increase benefits, and achieve a win-win situation for the growth of employees and the development of the enterprise.
4. Labor outsourcing
□ Applicable √ Not applicable
X. Profit Distribution and Reserve CapitalizationPreparation, implementation or adjustment of the policy for profit distribution, especially the policy for cash dividenddistribution in the report period
√Applicable □ Not applicable
The profit distribution plan for 2022 was approved by Annual General Shareholders’ Meeting of 2022 held on 28 June2023 which distributed distributing cash dividend of RMB 1.5 (tax included) for every 10 shares to all shareholders.Notice of the distribution was published on China Securities Journal, Securities Times, Shanghai Securities News,Securities Daily and Juchao Website (www.cninfo.com.cn)on 7 July 2023, and the profit had been distributed.
| Special explanation on cash dividend policy | |
| Satisfy regulations of General Meeting or requirement of Article of Association (Yes/No) | Yes |
| Well-defined and clearly dividend standards and proportion (Yes/No) | Yes |
| Completed relevant decision-making process and mechanism (Yes/No) | Yes |
| Independent directors perform duties completely and play a proper role (Yes/No) | Yes |
| If the company does not pay a cash dividend, it shall disclose the specific reasons and the next steps to enhance the return level of investors | N/A |
| Minority shareholders have ample opportunities and their legitimate rights and interests are effectively protected (Yes/No) | Yes |
| Condition and procedures are compliance and transparent while the cash bonus policy adjusted or changed (Yes/No) | N/A |
The Company gains profits in the report period and the retained profit of parent company is positive but no plan of cashdividend proposed
□ Applicable √ Not applicable
Proposal of profit distribution preplan or share conversion from capital public reserve in the report period
√Applicable □ Not applicable
| Distributing bonus shares for every 10 shares (share) | 0 |
| Distributing cash dividend for every 10 shares (tax included) (RMB) | 2.5 |
| Shares added for every 10-share base (Share) | 0 |
| Equity base for distribution preplan (share) | 3,070,692,107 |
| Total amount distribution in cash (RMB) (tax included) | 767,673,027 |
| Cash dividend amount in other ways (such as repurchasing shares) (RMB) | 0 |
| Total cash dividends (including other methods) (RMB) | 767,673,027 |
| Profit available for distribution (RMB) | 3,023,013,128 |
| Cash distributing accounted for the proportion of the total amount of profit distribution (including other methods) | 100% |
| Particular about cash dividend in the period | |
| If the Company’s development stage is not easy to distinguish but there are major capital expenditure arrangements, when the profit is distributed, the proportion of cash dividends in this profit distribution should be at least 20%. | |
| Details of proposal of profit distribution or share conversion from capital public reserve | |
XI. Implementation of the Company’s Equity Incentive Plan, Employee Stock Ownership Planor Other Employee Incentive Measures
□ Applicable √ Not applicable
During the report period, the Company had no equity incentive plan, employee stock ownership plan or other employeeincentive measures and the implementation.
XII. Construction and Implementation of the Internal Control System during the ReportingPeriod
1. Construction and Implementation of the Internal Control System
During the report period, the Company established a sound and complete internal control management system inaccordance with the requirements of the Company Law, the Securities Law, the Basic Norms for Enterprise InternalControl and other internal control regulatory rules, oriented by risk management, and operated it effectively. Itstrengthened and standardized its internal control which ensured the standardized operation of the Company and improvedthe management level and efficiency of the Company, promoting the sustainable development of the Company andprotecting the legitimate rights and interests of investors.
2. Particular case found involving material defects in the internal control during the reporting period
□Yes √No
XIII. Management and Control of the Subsidiaries during the Report PeriodDuring the report period, by establishing an effective internal control mechanism and implementing the internal controlmanagement plan, the internal operation supervision of subsidiaries was strengthened; by establishing a sound internalcontrol system of subsidiaries, the implementation and continuous improvement was promoted; by carrying out processmonitoring and special evaluation, the process risk management of subsidiaries was strengthened; by organizing theinternal control publicity and training of subsidiaries, a good internal control environment was created; by supervisingthe key businesses of subsidiaries, the legal compliance, reliability of financial reports, asset safety and operationefficiency of subsidiaries was reasonable guaranteed.XIV. Internal Control assessment Report or Internal Control Audit Report.
1. Assessment Report of the Internal Control
| Disclosure date of full text of self-appraisal report of internal control | April 26, 2024 | |
| Disclosure index of full text of self-appraisal report of internal control | More details found in “Report of Internal Control of CSG for year of 2023” published on Juchao Website (www.cninfo.com.cn) | |
| The ratio of the total assets of the units included in the scope of evaluation to the total assets of the Company’s consolidated financial statements | 91% | |
| The ratio of the operating income of the units included in the scope of evaluation to the operating income of the Company’s consolidated financial statements | 97% | |
| Standards of Defects Evaluation | ||
| Category | Financial Reports | Non-financial Reports |
| Qualitative criteria | A. Fraud of directors, supervisors and senior management; B. Ineffective control environment; C. Invalid internal supervision; D. Major internal control defects found and reported to the management but haven’t been corrected after a reasonable time; E. Material misstatements are found by the external audit but haven’t been found in the process of internal control; F. Financial reports submitted during the reporting period completely cannot meet the needs and are severely punished by regulatory agencies; G. Other major defects that may affect the report users’ correct judgment. Significant defects: A. Defects or invalidation of | A. Major decision-making mistakes caused by decision-making process of key business; B. Serious violation of state laws and regulations; C. Serious brain drain of senior and middle management and or personnel at key technological posts; D. Major or significant defects found in the internal control evaluation have not been rectified and reformed; E. The company’s major negative news frequently appears on media; Significant defects: A. Big deviation of execution caused by executive routine of key business; B. Regulatory authorities impose large amount of fines because the violation of laws and regulations; C. Defects or invalidation of |
| B. Significant misstatements are found by the external audit but haven’t been found in the process of internal control; C. Financial reports submitted during the reporting period have mistakes frequently; D. Other significant defects that may affect the report users’ correct judgment. Common defects: Other control defects except for major defects and significant defects. | Common defects: Other control defects except for major defects and significant defects. | |
| Quantitative standard | A. Amount of net profit affected by misstatements (based on consolidated statements): amount affected by misstatements is equal to or greater than 3% of net profit and the absolute amount is no less than 30 million yuan; B. Amount of assets and liabilities affected by misstatements (based on consolidated statements): amount affected by misstatements is equal to or greater than 1% of total assets. Significant defects: A. Amount of net profit affected by misstatements (based on consolidated statements): not belong to major defects and amount affected by misstatements is equal to or greater than 2% of net profit and the absolute amount is no less than 20 million yuan; B. Amount of assets and liabilities affected by misstatements (based on consolidated statements): amount affected by misstatements is equal to or greater than 0.5% of total assets but less than 1% of total assets. Common defects: Defects except for major and significant defects. | A. Amount of direct property loss: the direct loss amount is equal to or greater than 30 million yuan; B. Group’s reputation: major negative news spreads in numerous business areas or is widely reported by national media and causes significant damages to the corporate reputation which takes more than six months to be restored. Significant defects: A. Amount of direct property loss: the direct loss amount is equal to or greater than 20 million yuan but less than 30 million yuan; B. Group's reputation: negative news spreads inside the industry or is reported or focused by local media and causes certain damages to the corporate reputation which takes more than three months but less than six months to be restored. Common defects: A. Amount of direct property loss: defects except for major and significant defects. B. Group’s reputation: negative news spreads within the group and causes minor damages to the corporate reputation which takes less than three months to be restored. |
| Amount of significant defects in financial reports | 0 | |
| Amount of significant defects in non-financial reports | 0 | |
| Amount of important defects in financial reports | 0 | |
| Amount of important defects in non-financial reports | 0 | |
2. Audit report of internal control
√Applicable □ Not applicable
| Deliberations in Internal Control Audit Report | |
| Disclosure of internal control audit report | Disclosure |
| Date of disclosing the internal control audit reports | April 26, 2024 |
| Disclosure index of internal control audit report | More details can be found in 2023 Internal Control Audit Report of CSG released on Juchao Website (www.cninfo.com.cn) |
| Type of the auditor’s opinion | Standard unqualified opinion |
| Whether there are major flaws in the non-financial report or not | No |
Whether the CPAs firm issued an Audit Report on Internal Control with non-standard opinion or not
□Yes √ No
Whether the Audit Report on Internal Control from the CPAs firm is in consistent with the Self-appraisal Report fromthe Board or not
√ Yes □ No
XV. Rectification of the Problems Found in the Self-inspection during the Special Campaign toImprove the Governance of Listed Companies
Not Applicable
Section V. Environment and Social ResponsibilityI. Major environmental issuesWhether the listed company and its subsidiaries belong to the key pollutant discharge units announced by theenvironmental protection department
√ Yes □ No
Environmental protection related policies and industry standardsThe Company implemented the Environmental Protection Law of the People’s Republic of China, the Law of the People’sRepublic of China on the Prevention and Control of Air Pollution, the Law of the People’s Republic of China on thePrevention and Control of Water Pollution, the Law of the People’s Republic of China on the Prevention and Control ofNoise Pollution, the Environmental Protection Tax Law of the People’s Republic of China and other relevantenvironmental protection laws and regulations, and implemented the Emission Standard of Air Pollutants for Flat GlassIndustry, the Electronic Glass Working Air Pollutant Emission Standard, the Integrated Emission Standard of AirPollutants, the Sewage Integrated Emission Standards, the Environmental Noise Emission Standards at the Boundary ofIndustrial Enterprises and other national, industry and local pollutant discharge standards.Administrative license for environmental protectionThe construction projects of each subsidiary carried out environmental impact assessment work and obtain EIA approvalin strict accordance with the requirements of the Environment Impact Assessment Law of the People’s Republic of Chinaand the Catalogue of Classified Management of Environmental Impact Assessment of Construction Projects. During theconstruction of the project, the construction of pollution prevention and control facilities shall be carried out in strictaccordance with the requirements of the project “Three Simultaneous” and put into production and use at the same timeas the main project. During the trial production period, the inspection and acceptance shall be organized in accordancewith the relevant regulations on environmental protection acceptance of the completion of the construction project inorder to ensure that the construction project completes the inspection and acceptance work before it is officially put intooperation.All subsidiaries have obtained the pollutant discharge permit within the validity period, and regularly submitted theimplementation report of pollutant discharge permit.Industry emission standards and specific conditions of pollutant emission involved in production and operation activities
| Name of company or subsidiary | Type of main pollutants and characteristic pollutants | Name of main pollutants and characteristic pollutants | Way of emission | Number of exhaust vent | Exhaust vent distribution | intensity | Emission standard of pollutants | Total emission | Approved total emission | Excessive emission |
| Xianning CSG Glass Co., Ltd. | Air pollutants | Dust | intermittent | 54 | Production plant area | ≤30mg/m? | Emission Standard of Air Pollutants for Flat Glass Industry (GB26453-2011) | Particulates: 21.174t | Particulates: 93.251t/a | N/A |
| Soot | ≤25mg/m? | Particulates: 21.174t | Particulates: 93.251t/a | |||||||
| SO2 | ≤200mg/m? | 241.98t | 636.51t/a |
| NOx | ≤350mg/m? | 341.19t | 1113.89t/a | |||||||
| Chengdu CSG Glass Co., Ltd. | Air pollutants | Dust | intermittent | 38 | Production plant area | ≤20mg/m? | Emission Standard of Air Pollutants for Flat Glass Industry (GB26453-2011) | Particulates: 15.914t | Particulates: 142.114t/a | N/A |
| Soot | ≤20mg/m? | Particulates: 15.914t | Particulates: 142.114t/a | |||||||
| SO2 | ≤200mg/m? | 84.285t | 1136.917t/a | |||||||
| NOx | ≤350mg/m? | 409.647t | 1989.609t/a | |||||||
| Hebei CSG Glass Co., Ltd. | Air pollutants | Dust | intermittent | 19 | Production plant area | ≤10mg/m? | Ultra Low Emission Standard of Air Pollutants for Flat Glass Industry (DB13/2168-2020) | Particulates: 9.074t | Particulates: 19.92t/a | N/A |
| Soot | ≤10mg/m? | Particulates: 9.074t | Particulates: 19.92t/a | |||||||
| SO2 | ≤50mg/m? | 36.9476t | 99.63t/a | |||||||
| NOx | ≤200mg/m? | 152.579t | 398.55t/a | |||||||
| Wujiang CSG Glass Co., Ltd. | Air pollutants | Dust | Intermittent | 37 | Production plant area | 30mg/m? | Emission Standard of Air Pollutants for Flat Glass Industry (GB26453-2011) | 8.86t | 76.91t | N/A |
| Soot | Continuous | 2 | 15mg/m? | Technical Guidelines for Emergency Emission Reduction in Key Industries in Heavy Pollution Weather (2020 Revision) | 8.86t | 76.91t | ||||
| SO2 | 50mg/m? | 74.01t | 238.28t | |||||||
| NOx | 200mg/m? | 408.15t | 818.04t | |||||||
| Dongguan CSG Solar Glass Co., Ltd. | Air pollutants | Dust | intermittent | 22 | Production plant area | ≤20mg/m? | Emission Standard of Air Pollutants for Flat Glass Industry (DB44-2159-2019) | Particulates: 8.08t | Particulates: 34.85t/a | N/A |
| Soot | ≤30mg/m? | Particulates: 8.08t | Particulates: 34.85t/a | |||||||
| SO2 | ≤400mg/m? | 147.9t | 300.99t/a | |||||||
| NOx | ≤550mg/m? | 315.58t | 535.67t/a | |||||||
| Hebei Panel Glass Co., Ltd. | Air pollutants | Dust | intermittent | 8 | Production plant area | ≤30mg/m? | Emission Standard of Air Pollutants for Electronic Glass Industry (GB29495-2013) | Particulates: 0.603t | Particulates: 16.4225t/a | N/A |
| Soot | ≤10mg/m? | Particulates: 0.603t | Particulates: 16.4225t/a | |||||||
| SO2 | ≤50mg/m? | 1.842t | 87.7t/a | |||||||
| NOx | ≤200mg/m? | 10.67t | 105.1t/a | |||||||
| Xianning CSG Photoelectric Glass Co., Ltd. | Air pollutants | Dust | Continuous/intermittent | 6 | Production plant area | ≤20mg/m? | Emission Standard of Air Pollutants for Electronic Glass Industry (GB29495-2013) | Particulates: 1.827t/a | Particulates: 17.656t/a | N/A |
| Soot | ≤15mg/m? | Particulates: 1.827t/a | Particulates: 17.656t/a | |||||||
| SO2 | ≤10mg/m? | SO2: 0.22t/a | SO2: 65.6t/a | |||||||
| NOx | ≤330mg/m? | NOx: 56.86t/a | NOx: 163.81t/a | |||||||
| Dongguan CSG Architectural Glass Co., Ltd. | Water pollutants | pH | Intermittent | 1 | Sewage vent | 6~9 | Guangdong Province Water Pollutant Emission | / | / | N/A |
| COD | 27mg/L | 0.72t/a | 5.4t/a |
| Ammonia nitrogen | 0.244mg/L | Limit (DB44/26-2001) | 0.001t/a | 0.6t/a | ||||||
| Tianjin CSG Energy-Saving Glass Co., Ltd. | Water pollutants | pH | Intermittent | 2 | Sewage vent | 6~9 | Sewage Integrated Emission Standards (Level 3 Standard DB12/356-2018) | / | / | N/A |
| COD | ≤500mg/L | 9.436t | 500t/a | |||||||
| Ammonia nitrogen | ≤45mg/L | 1.291t | 45t/a | |||||||
| Wujiang CSG East China Architectural Glass Co., Ltd. | Water pollutants | pH | Intermittent | 1 | Sewage vent | 6~9 | Sewage Integrated Emission Standards (GB8978-1996) | / | / | N/A |
| COD | ≤500mg/L | 17.98t | 40.592t/a | |||||||
| Ammonia nitrogen | ≤45mg/L | 0.851t | 1.00444t/a | |||||||
| Dongguan CSG PV-tech Co., Ltd. | Water pollutants | COD | Intermittent | 20 | Sewage vent/ production plant area | ≤70mg/L | Guangdong Province Water Pollutant Emission Limit (DB44/26-2001) | 1.055t | 2.44t/a | N/A |
| NOx | ≤30mg/m? | Pollutant Emission Standard for Battery Industry (GB30484-2013) | 2.279t | 33.15t/a | ||||||
| Air pollutants | VOCS | ≤30mg/m? | VOC Emission Standard for Furniture Manufacturing Industry (DB44/814-2010) | 0.491t | 1.93t/a | |||||
| Yichang CSG Polysilicon Co., Ltd. | Water pollutants | COD | Intermittent | 8 | Sewage vent/ production plant area | ≤200mg/L | Emission Standards of Pollutants for Inorganic Chemical Industry (GB31573-2015), and Integrated Emission Standard of Air Pollutants (GB16297-1996) | 21.23t | 333.7314t/a | N/A |
| pH | 6~9 | / | / | |||||||
| Air pollutants | NOx | ≤240mg/m? | 0.677t | 38.28t/a | ||||||
| Particulates | ≤120mg/m? | 5.56t | 32.7423t/a |
Treatment of pollutantsAll subsidiaries have built pollution prevention and control facilities in accordance with the environmental impactassessment documents of construction projects and relevant specifications, and adopted air pollution control process suchas electrostatic precipitator + SCR denitrification + semi-dry desulfurization + bag dust removal, ceramic filter cartridgedesulfurization, denitrification and dust removal integration, bag dust removal and water treatment process such asneutralization + precipitation, fluidized bed, and biological oxidation, for which the technologies used were all in linewith the requirements of the “Guidelines for Feasible Technologies for Pollution Prevention and Control in GlassManufacturing Industry” and other documents. In 2023, the pollution control facilities were in good operation and thepollutants were discharged stably up to the standard. The air pollutant emission concentrations of most of the subsidiarieswere lower than 50% of the emission standard and enjoyed the preferential policy of halving environmental tax. Thepollutant emissions of many subsidiaries reached and implemented local ultra-low emission standards.Emergency response plan system of environment incident
In accordance with the national requirements, all subsidiaries prepared environmental emergency response plans,organized expert evaluation and filed with the local environmental protection department as required, and conducted theemergency drill against environmental emergency as planned. No major environmental emergency occurred in 2023.Environmental self-monitoring schemeThe subsidiaries have built and operated on-line monitoring devices for waste water and exhaust gas in accordance withnational laws and regulations, environmental impact assessment documents of construction projects and the requirementsof their replies, regularly carried out comparison and review of the effectiveness of on-line monitoring facilities, andentrusted a third-party unit to carry out manual environmental monitoring to comprehensively monitor the pollutantdischarge. The monitoring frequency is implemented in accordance with relevant monitoring technical guidelines orpollutant discharge permits.Investment in environmental governance and protection and payment of environmental protection taxAll subsidiaries have built pollution control facilities in accordance with the requirements of environmental impactassessment, and maintained the stable operation of these facilities to ensure their simultaneous operation with productionequipment. Considerable energy and funds are invested in pollution control every year to ensure the stable discharge ofpollutants up to the standard, and reduce pollution emission as much as possible. Many subsidiaries have reached ultra-low emission standards. All subsidiaries have made regular emission declarations and paid environmental taxes to thelocal tax authorities in full and on time in accordance with the requirements of the Environmental Protection Tax Law.Measures taken to reduce carbon emissions during the report period and their effects
√ Applicable □Not applicable
The Company has continuously strengthened the comprehensive utilization and management of resources and energy,actively fulfilled the corporate social responsibility, taken various measures to save energy and reduce carbon emissions,making our own contributions to the national goal of “Carbon Peaking” and “Carbon Neutrality”. The Group’s OperationDepartment has specially established an energy management team, which was responsible for supervising the energyconsumption management of various subsidiaries, and promoted the energy consumption per unit product and carbonemission per unit product of the Group’s various products to reach the advanced level in the industry. At present, theenergy consumption level of most glass melting furnaces in the flat glass business of CSG has reached the advanced levelstipulated by the national standard. At the same time, CSG has always paid attention to the utilization of waste heat inflat glass factories. Its first waste heat power plant was put into operation as early as 2009 and each production base hasbuilt waste heat boilers and waste heat power stations; CSG has been actively developing photovoltaic power plants since2012, most of which have photovoltaic power stations on the roofs of factories. In 2023, CSG’s waste heat powergeneration and photovoltaic power generation totalled about 502 million kWh, equivalent to reducing carbon dioxideemissions by more than 286,300 tons.Administrative penalties caused by environmental protection issues during the report period
| Name of the Company or subsidiary | Reason for the penalty | Particulars of the violation | Particulars of the penalty | Impact on the production and operation of the Company | Remediation measures of the Company |
| Chengdu CSG Glass Co., Ltd. | It violated Article 24, Paragraph 1 of | The humidity meter of the online monitoring equipment was damaged. | A fine of RMB 20,000 | No significant impact on operations. | Replaced the damaged humidity meter of the online monitoring |
| the Law of the People's Republic of China on the Prevention and Control of Atmospheric Pollution. | The baseline value of the baseline oxygen content in fuel gas and the default value of the chimney cross-sectional area failed to be adjusted after the software upgrade of the online monitoring equipment. The comparison frequency on the particulate matter detection reports for the kilns of lines 1, 2, and 3 did not meet the requirements. The hose of the peristaltic pump of the automatic online fuel gas monitoring equipment for lines 2 and 3 was damaged. The temperature of the heating tracer of the online monitoring equipment for the exhaust ducts of the kilns of lines 2 and 3 was insufficient. | equipment; adjusted the baseline value of the baseline oxygen content in fuel gas and the chimney cross-sectional area according to the reality; conducted comparative detection reports of particulate matters in the kilns of lines 1, 2, and 3 as required; repaired the damaged hose of the peristaltic pump of the automatic online flue gas monitoring equipment for lines 2 and 3; ensured as required that the temperature of the heating tracer of the online monitoring equipment for the exhaust ducts of the kilns of lines 2 and 3 reaches 120℃. |
Other environmental information that should be disclosedNilOther relevant environmental protection informationNilEnvironmental incidents in the listed companyIn 2023, no environmental incidents occurred.
II. Social responsibilityThe 2023 Annual Social Responsibilities Report of CSG is the 16
th
social responsibility report released by the Companyconsecutively. Focusing on the year of 2023, the report systemically described the concrete actions of the Company toactively perform its social responsibilities and its efforts to implement the “Scientific Development Perspective”, buildup a harmonious society, and advance the sustainable development of economy and society. See the full report onwww.cninfo.com.cn.III. Consolidate and expand the achievements of poverty alleviation and rural revitalizationDuring the report period, the Company and its subsidiaries actively carried out social welfare and poverty alleviationactivities. For details, see the 2023 Annual Social Responsibilities Report of CSG disclosed on www.cninfo.com.cn.
Section VI. Important EventsI. Implementation of commitment
1. Commitments completed by the actual controllers, the shareholders, the related parties, the purchasers,the Company or the other related parties during the report period and those hadn’t been completed executionby the end of the report period
√Applicable □ Not applicable
| Commitments | Promisee | Type of commitments | Content of commitments | Commitment date | Commitment term | Implementation |
| Share Merger Reform | Not Applicable | |||||
| Commitments in report of acquisition or equity change | Foresea Life Insurance Co., Ltd, Shenzhen Jushenghua Co., Ltd. and Chengtai Group Co., Ltd. | capital occupation | Foresea Life Insurance Co., Ltd., Shenzhen Jushenghua Co., Ltd. and Chengtai Group Co., Ltd. issued detailed report of equity change on 29 June 2015, in which, they undertook to keep independent from CSG in aspects of personnel, assets, finance, organization set-up and business as long as Foresea Life Insurance remained the largest shareholder of CSG. Meanwhile, they made commitment on regularizing related transaction and avoiding industry competition. | 2015-6-29 | During the period when Foresea Life remains the largest shareholder of the Company | |
| Commitments in assets reorganization | Not Applicable | |||||
| Commitments in initial public offering or re-financing | Not Applicable | |||||
| Equity incentive commitment | Not Applicable | |||||
| Other commitments for medium and small shareholders | Not Applicable | |||||
| Other commitments | Not Applicable | |||||
| Completed on time(Yes/No) | Yes | |||||
| If the commitments is not fulfilled on time, explain the reasons and the next work plan | Not applicable | |||||
Note : Shenzhen Jushenghua Co., Ltd. transferred its 86,633,447 unrestricted tradable A shares of CSG Group to its wholly-ownedsub-subsidiary Zhongshan Runtian Investment Co., Ltd. through agreement transfer on March 16, 2020. Zhongshan Runtian InvestmentCo., Ltd. is obliged to continue to fulfill the commitments made by Shenzhen Jushenghua Co., Ltd. As of the end of the report period,
the above-mentioned shareholders had strictly fulfilled the relevant commitments.
2. If there are assets or projects of the Company, which has profit forecast and the report period is still inforecasting period, the Company should explain reasons why they reach the original profit forecast
□ Applicable √ Not applicable
II. Particulars about non-operating fund of listed company which is occupied by controllingshareholder and its affiliated enterprises
□ Applicable √ Not applicable
III. Illegal external guarantee
□ Applicable √ Not applicable
The Company had no illegal external guarantee during the report period.IV. Explanation from the Board of Directors for the latest “Non-standard audit report”
□ Applicable √ Not applicable
V. Explanation from Board of Directors, Supervisory Committee and Independent Directors(if applicable) for “Non-standard audit report” of the period that issued by CPA
□ Applicable √ Not applicable
VI. Explanation of changes in accounting policies, accounting estimates or correction ofsignificant accounting errors compared with the financial report of the previous year
√ Applicable □ Not applicable
| The content and reason of accounting policy change | Approval procedures |
| In November 2022, the Ministry of Finance issued Interpretation No. 16 of the Accounting Standards for Business Enterprises (C.K. [2022] No. 31) (hereinafter referred to as "Interpretation No. 16"). Interpretation No. 16 stipulates that for single transactions that are not business combinations, that affect neither accounting profit nor taxable income (or deductible losses) at the time the transaction occurs, and where the initial recognition of assets and liabilities results in taxable temporary differences and deductible temporary differences of equal amounts should, in accordance with the No. 18 of the Accounting Standards for Business Enterprises - Income Taxes and other relevant regulations, be recognised as deferred income tax liabilities and deferred income tax assets, respectively, at the time of the transaction. For transactions effected between the beginning of the earliest period presented in the financial statements that adhered to the said regulations for the first time and the date of implementation of the aforementioned regulations, enterprises should, in accordance with the said regulations, adjust the cumulative effect to the opening retained earnings of the earliest period presented in the financial statements and other related financial statement items. The aforementioned accounting treatment regulations shall come into force as of January 1, 2023. The Group's implementation of the aforementioned changes in accounting estimates has no significant impact on the financial statements dated December 31, 2022 and December 31, 2023 or the financial statements for 2023. | On April 24, 2023, the Board of Directors of the Company reviewed and passed the Proposal on Accounting Policy Changes. |
VII. Description of changes in consolidation statement’s scope compared with the financialreport of the previous year
√ Applicable □Not applicable
| Relationship with the Company | Name | How the equity interests were obtained | Date when the equity interests were obtained/the subsidiary was established | The Company’s interest (%) |
Subsidiary
| Subsidiary | Guangdong Licheng Construction Engineering Co., Ltd. | Acquired in cash | March 21, 2023 | 100% |
Subsidiary
| Subsidiary | Guangxi CSG Mining Co., Ltd. | Incorporated | April 24, 2023 | 100% |
Subsidiary
| Subsidiary | CSG Japan Co., Ltd. | Incorporated | April 26, 2023 | 100% |
Subsidiary
| Subsidiary | Wuxuan Nanxin Mining Co., Ltd. | Incorporated | May 19, 2023 | 60% |
Subsidiary
| Subsidiary | Qinghai CSG Photovoltaic Technology Co., Ltd. | Incorporated | October 18, 2023 | 100% |
Subsidiary
| Subsidiary | Jiangyou CSG Quartz Sand Co., Ltd. | Incorporated | December 8, 2023 | 100% |
VIII. Engaging and dismissing of CPA firm
CPA firm engaged
| Name of domestic CPA firm | Grant Thornton Zhitong Certified Public Accountants LLP |
| Remuneration for domestic CPA firm (RMB 0,000) | 270 |
| Continuous life of auditing service for domestic CPA firm | 1 |
| Name of domestic CPA | Su Yang, Yang Hua |
| Continuous life of auditing service for domestic CPA | Su Yang (1 year), Yang Hua (1 year) |
| Name of overseas CPA firm (if any) | N/A |
| Continuous life of auditing service for overseas CPA firm (if any) | N/A |
| Name of overseas CPA (if any) | N/A |
| Continuous life of auditing service for overseas CPA (if any) | N/A |
Whether changed accounting firms in this period or not
√ Yes □No
Whether changed accounting firms during the audit or not
□ Yes √No
Whether changed accounting firms will carry out the approval procedures or not
√ Yes □No
Detailed explanations on the replacement and change of the CPA firmi. Approval procedures performedOn November 10, 2023, the Audit Committee of the Ninth Board of Directors convened an interim meeting. At themeeting, the proposal Matters Regarding the Engagement of the Auditor for 2023 was reviewed and approved.Subsequently, the Proposal on the Engagement of the Auditor for 2023 was approved by the interim meeting of the NinthBoard of Directors on November 13, 2023 and then by the Third Extraordinary General Shareholders' Meeting of 2023on November 29, 2023, respectively, consenting to engage Grant Thornton Zhitong Certified Public Accountants LLP as theCompany's auditor for 2023. The auditor shall be responsible for auditing the Company's annual financial reports, internal
control, and related services. The term shall be one year. The auditor's fee for 2023 was determined to be RMB 3 million(unchanged from that of the previous year) through negotiations, adhering to fair and reasonable principles, consideringfactors such as the Company's business scale, industry, required audit personnel, workload, and the fee standards of theCPA firm. This fee included the financial audit fee of RMB 2.7 million and the internal control audit fee of RMB 0.3million.ii. Information on the previous CPA firm and the audit opinion for previous yearThe Company's former CPA firm, Asia Pacific (Group) CPAs (Special General Partnership), had been serving theCompany for six consecutive years. In the previous year, their audit opinion on the Company's financial report wasStandard and unqualified. There are no instances in which the Company dismisses the previous CPA firm after engagingit to perform certain audit work.iii. Reasons for changing the CPA firmConsidering that Asia Pacific (Group) CPAs (Special General Partnership) had been serving the Company for multipleconsecutive years and taking into account the Company's business development and its needs of audit work, the Companychanged the CPA firm, and engaged Grant Thornton Zhitong Certified Public Accountants LLP as its auditor for 2023.Appointment of internal control auditing accounting firm, financial consultant or sponsor
√ Applicable □ Not applicable
Grant Thornton Zhitong Certified Public Accountants LLP was engaged as audit institute of internal control for the Company
in the report period, and contracted charges was RMB 0.30 million (cost of business trips and accommodation at its ownexpense).
IX. Delisting after the disclosure of the annual report
□ Applicable √ Not applicable
X. Issues related to bankruptcy and reorganization
□ Applicable √ Not applicable
There were no bankruptcy or restructuring related matters during the reporting period of the company.XI. Significant lawsuits and arbitrations
√ Applicable □ Not applicable
| Basic information | Amount involved (RMB 0,000) | Recognised as estimated liabilities or not | Progress | Result and impact | Judgement execution | Date of disclosure | Index of disclosure |
| Defendant: CSG Holding Co., Ltd. Case overview: The plaintiff filed a lawsuit with the court to confirm the resolutions of the General Meeting of Shareholders as | 0 | No | The first instance judgment had been passed. The plaintiff appealed Note. | The first instance judgment rejected the lawsuit request of the plaintiff Zhongshan Runtian Investment Co., Ltd. | Not applicable | 1 October 2022 | Announcements on Company Involved Lawsuits on http://www.cninfo.com.cn (Announcement No.: 2022-056) |
| 12 August 2023 | Announcement on the Progress of Companies Involving Litigation on http://www.cninfo.com.cn (Announcement No.: 2023-026) |
| invalid. | 25 August 2023 | Announcement on the Progress of Companies Involving Litigation on http://www.cninfo.com.cn (Announcement No.: 2023-027) |
Note: As of the date of disclosure of this report, the Company has not received the court's acceptance, response, evidence and relatedlitigation notices.XII. Penalty and rectification
□ Applicable √ Not applicable
There were no penalties or rectifications during the report period of the Company.XIII. Integrity of the Company and its controlling shareholders and actual controllers
√ Applicable □ Not applicable
The Company has no controlling shareholder and actual controller. According to the disclosure requirements, theCompany’s largest shareholder Foresea Life Insurance Co., Ltd., shareholder Zhongshan Runtian Investment Co., Ltd.,shareholder Chengtai Group Co., Ltd. and Shareholder Shenzhen Guanlong Logistics Co., Ltd. shall disclose thecorresponding information. The details are as follows:
i. Integrity of the CompanyDuring the report period, it did not exist that the Company failed to perform the effective judgment of the court or owedcomparatively large amount of debt which was overdue. The Company’s integrity was good.ii. The integrity of the Company’s shareholders
1. According to the reply of the Company’s largest shareholder, Foresea Life Insurance Co., Ltd.: As of December 31,2023, it did not exist that Foresea Life Insurance Co., Ltd. failed to perform the effective judgment of the court or owedcomparatively large amount of debt which was overdue.
2. According to the reply of the shareholder Zhongshan Runtian Investment Co., Ltd., the original content is as follows:
As of December 31, 2023, the cases executed by Zhongshan Runtian Investment Co., Ltd. (hereinafter referred to as“Zhongshan Runtian”) are as follows:
(1) Due to the case of execution of notarising creditor’s rights documents between Great Wall Guoxing Financial LeasingCo., Ltd. and 16 companies including Shenzhen Shum Yip Logistics Group Co., Ltd., Shenzhen Baoneng InvestmentGroup Co., Ltd., Baoneng Real Estate Co., Ltd. and Zhongshan Runtian Investment Co., Ltd., Great Wall GuoxingFinancial Leasing Co., Ltd. applied to the court for compulsory execution. As the guarantor of the debt of RMB 164million, Zhongshan Runtian was jointly and severally liable for the debt, and its 5.57 million shares of Jonjee High-techwere used as collateral. According to the Announcement on the Results of Judicial Disposal of Certain Shares ofShareholder Holding More Than 5% of the Shares disclosed by the Board of Directors of Jonjee High-tech on December18, 2023, Great Wall Guoxing Financial Leasing Co., Ltd. applied for compulsory execution. 5.57 million shares in JonjeeHigh-tech have been disposed of, with a disposal amount of RMB 160,422,600 and a debt joint and several liabilityfulfilment amount of RMB 160,422,600.
(2) Due to the case of notarising creditor’s rights documents between Chongqing Xinyu Financial Leasing Co., Ltd. andthe defendants Shenzhen Baoneng Investment Group Co., Ltd., Shenzhen Baoneng Automobile Co., Ltd., and ZhongshanRuntian, Chongqing Xinyu Financial Leasing Co., Ltd. applied to the court for compulsory execution. As the guarantorof the debt of RMB260 million, Zhongshan Runtian used its 67.65 million A shares of CSG as collateral. As of June 29,
2022, it has disposed of 55,628,900 A shares of CSG, with a total amount of RMB 319,999,300.00. At present, the courthas transferred RMB 301,717,392.44 to the creditor, and Zhongshan Runtian's guarantee liability has been enforced.
(3) Due to the case of notarising creditor’s rights documents between Guangdong Finance Trust Co., Ltd. and ZhongshanRuntian, Shenzhen Jushenghua Co., Ltd., Shenzhen Baoneng Investment Group Co., Ltd., Baoneng Holdings (China) Co.,Ltd., and Mr. Yao Zhenhua, Finance Trust applied to the court for compulsory execution. The 26,550,000 shares of JonjeeHigh-tech held by Zhongshan Runtian Investment Co., Ltd. have been sold on September 13, 2022, and the amountcredited into the account was RMB 793,755,369.22, which was approximately RMB 90 million different from the debtamount of RMB 882,199,570.79 submitted to the court by the execution applicant. As a result, the case remained unsettled.
(4) Due to the dispute over the financial loan contract between AVIC Trust Co., Ltd. and Zhongshan Runtian, ZhongshanRuntian, as the borrower of the debt principal of RMB 1.05 billion, and Hefei Baohui Real Estate Co., Ltd., Hefei BaonengReal Estate Development Co., Ltd., Shenzhen Jushenghua Co., Ltd., Shenzhen Shum Yip Logistics Group Co., Ltd.,Shenzhen Baoneng Investment Group Co., Ltd., Chia Tai (Shenzhen) Development Co., Ltd. and Mr. Yao Zhenhua werejointly and severally liable for the debt. As of December 31, 2023, it has disposed a total of 11,156,871 shares of JonjeeHigh-tech; among them, the first round of freezing of 2,125,605 shares by AVIC Trust Co., Ltd. and the judicial mark of8,056,410 shares.
(5) Due to the case of execution of notarising creditor’s rights documents between Chongqing International Trust Co.,Ltd. and Shenzhen Jushenghua Co., Ltd., Zhongshan Runtian, Shenzhen Baoneng Investment Group Co., Ltd. and Mr.Yao Zhenhua, the court ruled to seal up and freeze the property of RMB 541 million of Jushenghua, Baoneng Group andYao Zhenhua, and to freeze the 22 million shares of Jonjee High-tech pledged by Zhongshan Runtian to Chongqing Trust.At present, Chongqing Trust has applied for compulsory execution. As of February 2, 2023, it has disposed of 21,025,100shares of Jonjee High-tech, with a total amount of RMB 617,383,579.06.
(6) Due to the case of the loan contract dispute between Zhongshan Runtian and Shanghai Pudong Development BankCo., Ltd., the People’s Court of Futian District, Shenzhen has issued an Execution Ruling, ruling that 12 million sharesheld by Zhongshan Runtian in “Jonjee High-tech”, the entity subject to enforcement, shall be auctioned off and realisedfor the purpose of settling the debt. As the bidder failed to pay the final payment within the prescribed time, according tothe Notification of Sale from the People’s Court of Futian District, Shenzhen issued on February 16, 2023, the aforesaid12 million shares would be re-auctioned. On March 22, 2023, Shanghai Pudong Development Bank Co., Ltd. disposedof the 12 million shares held by Zhongshan Runtian in “Jonjee High-tech” by way of a judicial auction. The 12 millionshares have been disposed of for RMB 405,684,000.Notice of auction was received on December 12, 2023: the Futian Court intended to judicially auction 9 millionunrestricted public shares of Jonjee High-tech held by Zhongshan Runtian on the Judicial Auction Online Platform from10:00 a.m. on January 16, 2024 to 10:00 a.m. on January 17, 2024 (except for the extension of the time), which has beensuspended due to the supplemental security.
(7) Due to the case of the loan contract dispute between Zhongshan Runtian and Chongqing Trust Inc., ShenzhenIntermediate People’s Court has issued an execution notification demanding the disposal of 22 million shares held byZhongshan Runtian in “Jonjee High-tech” at a realised price. On January 17, 2023, Chongqing Trust disposed of a totalof 5.7 million shares held by Zhongshan Runtian by way of block trading.
(8) Due to the case of the loan contract dispute between Zhongshan Runtian and Bank of Communications FinancialLeasing Co., Ltd., the Intermediate People’s Court of Zhongshan City, Guangdong Province has issued an executionruling to auction off 8,329,457 shares held by Zhongshan Runtian in “Jonjee High-tech”. On 11 May 2023, Bank ofCommunications Financial Leasing Co., Ltd. disposed of the 8,329,457 shares held by Zhongshan Runtian in “JonjeeHigh-tech” by way of a judicial auction. The auction proceeds of RMB 284.27 million, which has been used up to payoff RMB 202,451,688.15 in this case, RMB 269,851.69 in execution fees, and RMB 50,000 in auxiliary auction fees.
(9) Due to the case of the loan contract dispute between Zhongshan Runtian and Bohai Trust, the Intermediate People'sCourt of Zhongshan City, Guangdong Province has issued an Execution Ruling, ruling the mandatory realisation of 13.7million shares held by the entity subject to enforcement, Zhongshan Runtian, in "Jonjee High-tech". As of June 6, 2023,all 13.7 million shares had been disposed of. The court has disbursed a total of RMB 458,173,319.95 to Bohai Trust, withapproximately RMB 10 million outstanding. Bohai Trust has initiated separate legal proceedings at the Shenzhen Courtof International Arbitration to recover the outstanding balance and realise the collateral, and the pledge guarantee amountsto RMB 35,504,500. Currently, the case is awaiting a court hearing.
(10) Due to the case of the transfer and buy-back contract dispute between Zhongshan Runtian and Shenzhen QianhaiDongfang Venture, the Intermediate People's Court of Shenzhen Municipality has issued an Execution Ruling, ruling thatthe property of the entities subject to enforcement, including Shenzhen Hualitong, Zhongshan Runtian, BaonengInvestment and Jushenghua, should be seized, frozen, sequestered, withheld, withdrawn or allocated to the extent of atotal amount of RMB 623,102,565.76 (including RMB 43,513, 215.76 of Zhongshan Runtian Investment Co., Ltd.), aswell as interest on the debt during the period of delayed performance, costs of enforcement applications, and actualexpenses incurred during the enforcement.
(11) Due to the case of the financial loan contract dispute between Bank of Tibet and Lhasa Baochuang and ZhongshanRuntian, the total enforcement amount stands at RMB 828,970,067.74, with RMB 821,439,159.19 already enforced. InAugust 2023, the court issued a Reinstatement of Execution Ruling, which ruled to withhold and freeze the bank depositsof the entities subject to enforcement in the sum of RMB 50,943,534.03, a total enforcement fee of RMB 118,343.53, aswell as interest, interest on the debt during the period of delayed performance, and case acceptance fee.
(12) Due to the case of the loan contract dispute between Shenzhen Baotai Honghua and Zhongshan Runtian, Hualitongand Shenzhen Jixiang Service, Shenzhen Baotai Honghua applied for enforcement of RMB 1,205,000,000 and interest.In another case, asset disposal resulted in the distribution of disposal proceeds of RMB 356,272,071.65.
(13) Due to the case of the equity pledge dispute between Essence Securities and Zhongshan Runtian, the amount of thelitigation is RMB 352,912,928.76. The Intermediate People's Court of Nanchang City has issued a first-instancejudgement, which ruled to reject the litigation request of Essence Securities. In September 2023, Essence Securities filedanother lawsuit with the Futian court in Shenzhen, seeking payment from Zhongshan Runtian for financing funds andinterest. The claim in this case amounts to RMB 128 million. The case is currently undergoing first-instance proceedings.
(14) Due to the three cases of claim transaction disputes between Guangdong Huaxing Bank Co., Ltd. and Jushenghua,Shum Yip Logistics, Baoneng Investment, Hualitong, and Zhongshan Runtian, judgements have been rendered in the firstinstance. In Case No. (2022) Y. 0303 M.C. 19249, Zhongshan Runtian is held jointly and severally liable for settling theprincipal of RMB 150,000,000 and associated interest. In Case No. (2022) Y. 0303 M.C. 19248, Zhongshan Runtianbears the joint and several liability for settling the principal of RMB 300,000,000 and interest of RMB 22,500,000 on thebonds in question. In Case No. (2022) Y. 0303 M.C. 19250, Zhongshan Runtian is jointly and severally liable for settlingthe principal of RMB 200,000,000 and associated interest on the bonds in question. All these cases are currently in thesecond instance.
(15) Due to the case of the finance lease contract dispute between Science City (GZ) Financial Leasing Co., Ltd. andKunshan JuTron New Energy Technology Co., Ltd., Baoneng Investment, Jushenghua, Baoneng Urban Development,Taiyuan Baoju Real Estate, Qianhai Huabao Supply Chain, Zhongshan Runtian, and Ping An Securities, ZhongshanRuntian acts as a guarantor for the debt of RMB 120 million. The first-instance judgement has yet to be rendered.
(16) Due to the case of the corporate bond trading dispute between Guangdong Huaxing Bank Co., Ltd. and Shum YipLogistics, Jushenghua, Baoneng New Energy Automobile, Shenzhen Baoneng Automobile, Yao Zhenhua, BaonengInvestment, Hualitong, and Zhongshan Runtian, Zhongshan Runtian acts as a guarantor for the debt of RMB 450 million.The case is still at the stage of the first instance.
(17) Due to the two cases of finance lease contract disputes between Science City (GZ) Financial Leasing Co., Ltd. andQoros Automotive, Baoneng Investment, Jushenghua, Baoneng Urban Development, Yao Zhenhua, Taiyuan Baoju RealEstate, Chongqing Baoneng Supply Chain, Guangzhou Baoneng Culture Entertainment, Qianhai Huabao Supply Chain,Zhongshan Runtian, and Ping An Securities, the total claim amount is RMB 186 million, and Zhongshan Runtian acts asthe guarantor in the cases. The cases are currently in the first-instance stage.
(18) Due to the case of the finance lease contract dispute between Science City (GZ) Financial Leasing Co., Ltd. andShenzhen Baoneng Automobile, Baoneng Investment, Jushenghua, Baoneng Urban Development, Yao Zhenhua, TaiyuanBaoju Real Estate, Guangzhou Baoneng Culture Entertainment, Qianhai Huabao Supply Chain, Zhongshan Runtian, andPing An Securities, Zhongshan Runtian acts as a guarantor for the debt of RMB 210 million. The case is currently in thefirst-instance stage.
(19) Due to the case of the finance lease contract dispute between Science City (GZ) Financial Leasing Co., Ltd. andShenzhen Hua'ai Industrial Development, Baoneng Investment, Jushenghua, Baoneng Urban Development, Yao Zhenhua,Taiyuan Baoju Real Estate, Guangzhou Baoneng Culture Entertainment, Qianhai Huabao Supply Chain, ZhongshanRuntian, and Ping An Securities, Zhongshan Runtian acts as a guarantor for the debt of RMB 20.33 million. The case iscurrently in the first-instance stage.
(20) Due to the case of the finance lease contract dispute between Science City (GZ) Financial Leasing Co., Ltd. andBaoneng Automotive Research and Development, Baoneng Investment, Jushenghua, Baoneng Urban Development, YaoZhenhua, Taiyuan Baoju Real Estate, Guangzhou Baoneng Culture Entertainment, Qianhai Huabao Supply Chain,Zhongshan Runtian, and Ping An Securities, Zhongshan Runtian acts as a guarantor for the debt of RMB 22.38 million.The case is currently in the first-instance stage.
(21) Due to the two cases of finance lease contract disputes between Science City (GZ) Financial Leasing Co., Ltd. andShenzhen Baoneng Automobile, Qoros Automotive, Baoneng Investment, Jushenghua, Baoneng Urban Development,Zhongshan Runtian, Yao Zhenhua, Tengchong Beihai Wetland, Guangzhou Baoneng Culture Entertainment, QianhaiHuabao Supply Chain, and Chuangbang Group, the total claim amount is RMB 142 million, and Zhongshan Runtian actsas the guarantor. The two cases are currently in the first-instance stage.
(22) Due to the case of the finance lease contract dispute between Shandong Tongda Financial Leasing Co. Ltd. andShenzhen Baoneng Automobile, Baoneng Investment, Zhongshan Runtian, Wuhu Baoneng Real Estate, ShenzhenXinchang Enterprise Management Co., Ltd., and Chuangbang Group, Zhongshan Runtian acts as a guarantor for the debtof RMB 260 million. The case is currently in the first-instance stage.
(23) Due to the case of the finance lease contract dispute between Shandong Tongda Financial Leasing Co. Ltd. and ShumYip Logistics, Baoneng Investment, Baoneng Real Estate, Zhongshan Runtian, Wuhu Baoneng Real Estate, and ShenzhenHualitong, Zhongshan Runtian acts as a guarantor for the debt of RMB 160 million. The case is currently in the first-instance stage.
(24) Due to the two cases of finance lease contract disputes between Science City (GZ) Financial Leasing Co., Ltd. andShenzhen Hua'ai Industrial Development, Yao Zhenhua, Guangzhou Baoneng Culture Entertainment, Qianhai HuabaoSupply Chain, Zhongshan Runtian, and Jushenghua, the total claim amount is RMB 122 million, and Zhongshan Runtianacts as the guarantor. The two cases are currently in the first-instance stage.As of December 31, 2023, the details of Zhongshan Runtian’s comparatively large amount of debt which was overdueare as follows:
| Serial number | Borrower | Financial institution | (RMB 0,000) | Credit enhancement plan | Start date of loan | Maturity date of loan |
| 1 | Zhongshan Runtian Investment Co., Ltd. | Essence Securities | 4,239.28 | Guarantee+Pledge | 2018/12/27 | 2021/12/26 |
| 2 | Zhongshan Runtian Investment Co., Ltd. | AVIC Trust | 105,000.00 | Guarantee+Pledge | 2019/9/25 | 2021/10/31 |
| Total | 109,239.28 |
Note: As of October 31, 2023, related stocks held by Zhongshan Runtian had been liquidated by AVIC Trust throughvarious channels. However, since it is not the first pledgee, the proceeds from liquidation must be retained for withdrawalby the first pledgee, Essence Securities. AVIC Trust has withdrawn only part of the funds so far. Due to the large numberof issues and quantities of trust products, the Company is still negotiating with AVIC Trust on the deduction method forprincipal and interest, and no solution has been finalised. Therefore, the outstanding loan cannot be adjusted for now.Once a solution is finalised, further disclosure will be made.As of December 31, 2023, Mr. Yao Zhenhua’s personal execution cases are as follows:
(1) Due to the case of dispute over notarising creditor’s rights documents between Ping An Trust Co., Ltd. andShaoxing Baorui Real Estate Co., Ltd., Baoneng City Co., Ltd., Shenzhen Baoneng Investment Group Co., Ltd.,Baoneng Real Estate Co., Ltd., Shanghai Kaiyue Investment Co., Ltd. and Mr. Yao Zhenhua, which was applied forcompulsory execution by Ping An Trust, Mr. Yao Zhenhua was jointly and severally liable for the principal and interestof the debt of RMB 420 million.
(2) Due to the trust loan dispute between the National Trust and Shenzhen Xinao Trading Co., Ltd., Shenzhen BaonengInvestment Group Co., Ltd., Mr. Yao Zhenhua and others signed relevant guarantee contracts, ordering Shenzhen XinaoTrading Co., Ltd. to repay the loan principal of RMB 290 million and related interest and lawsuit costs. Shenzhen BaonengInvestment Group Co., Ltd., Mr. Yao Zhenhua and others were jointly and severally liable for the debt.
(3) Due to the financial borrowing between Zhongrong International Trust Co., Ltd. and Baoneng Automobile Co., Ltd.,it applied to the Beijing Third Intermediate People’s Court for compulsory execution for notarisation on the matter. SinceMr. Yao Zhenhua provided a guarantee for this loan business and signed the relevant notarised documents, he was jointlyand severally liable for the debt of RMB 1,048 million.
(4) As Kunlun Trust Co., Ltd. applied to the court for compulsory execution of the notarising creditor’s rights documentswith Shum Yip Logistics Group Co., Ltd., Baoneng Century Co., Ltd., Chia Tai (Shenzhen) Development Co., Ltd.,Shenzhen Baoneng Investment Group Co., Ltd., Baoneng Holdings (China) Co., Ltd., and Mr. Yao Zhenhua, Mr. YaoZhenhua assumed joint and several guarantee liabilities for the debt of RMB 1.31 billion.
(5) Due to the case of notarising creditor’s rights documents between Guangzhou Xinhua City Development IndustryInvestment Enterprise (Limited Partnership) and the defendants Shenzhen Baoneng Investment Group Co., Ltd.,Shenzhen Jushenghua Co., Ltd. and Mr. Yao Zhenhua, Mr. Yao Zhenhua, as the guarantor, signed the relevant notarialdocuments and assumed joint and several liabilities for the principal and interest of the creditor’s rights of RMB 600million.
(6) Due to the dispute over the loan contract between Fuzhou Branch of Xiamen International Bank Co., Ltd. andShenzhen Jushenghua Co., Ltd., Fuzhou Branch of Xiamen International Bank Co., Ltd. applied to Shenzhen IntermediatePeople’s Court for compulsory execution. Mr. Yao Zhenhua, as the guarantor of the loan principal of RMB 2.16 billion,signed the corresponding Guarantee Contract and assumed joint and several liabilities for the debt.
(7) Due to the financial loan dispute between Guangdong Finance Trust Co., Ltd. and Zhongshan Runtian, GuangdongFinance Trust Co., Ltd. applied to Shenzhen Intermediate People’s Court for compulsory execution. Mr. Yao Zhenhua,as the guarantor of the loan, signed the corresponding Guarantee Contract and was jointly and severally liable for the debtof RMB 720 million. The 26,550,000 shares of Jonjee High-tech held by Zhongshan Runtian Investment Co., Ltd. havebeen realised on September 13, 2022, with a received amount of RMB 793,755,369.22, which is about RMB 90 milliondifferent from the owed amount of RMB 882,199,570.79 submitted to the court by the applicant for execution. Therefore,the case has not been settled for the time being.
(8) Due to the financial debt dispute between China Railway Trust Co., Ltd. and Baoneng Automobile Group Co., Ltd.and Kunming Baojun Real Estate Co., Ltd., it applied to Chengdu Intermediate People’s Court of Sichuan Province forcompulsory execution. As the guarantor of the debt, Mr. Yao Zhenhua signed the corresponding Guarantee Contract andwas jointly and severally liable for the debt of RMB 2,095 million. A settlement agreement has been signed in this case.
(9) Due to the financial debt dispute between China Railway Trust Co., Ltd. and Baoneng Automobile Group Co., Ltd.and Kunming Jianpeng Real Estate Development Co., Ltd., it applied to Chengdu Intermediate People’s Court of SichuanProvince for compulsory execution. Mr. Yao Zhenhua, as the guarantor of the debt, signed the corresponding GuaranteeContract and was jointly and severally liable for the debt of RMB 836 million. A settlement agreement has been signedin this case and the execution has been terminated.
(10) Due to the case of notarising creditor’s rights documents between Changan International Trust Co., Ltd. andShenzhen Baoneng Investment Group Co., Ltd., Wuxi Baoneng Real Estate Co., Ltd., Baoneng Holdings (China) Co.,Ltd., Shenzhen Jushenghua Co., Ltd., and Mr. Yao Zhenhua, Changan Trust applied for compulsory execution. Mr. YaoZhenhua, as the guarantor of the debt, was jointly and severally liable for the debt of RMB 925 million.
(11) Due to the case of notarising creditor’s rights documents between Changan International Trust Co., Ltd. andShenzhen Baoneng Investment Group Co., Ltd., Wuxi Baoneng Real Estate Co., Ltd., Baoneng Holdings (China) Co.,Ltd., Shenzhen Jushenghua Co., Ltd., and Mr. Yao Zhenhua, Changan Trust applied for compulsory execution. Mr. YaoZhenhua, as the guarantor of the debt, was jointly and severally liable for the debt of RMB 1,117 million.
(12) Due to the case of notarising creditor’s rights documents between China Minsheng Trust Co., Ltd. and the defendantsShenzhen Baoneng Investment Group Co., Ltd., Hefei Baohui Real Estate Co., Ltd., Shenzhen Baoneng EnterpriseManagement Co., Ltd., Anhui Baoneng Land Co., Ltd., and Mr. Yao Zhenhua, Minsheng Trust applied for compulsoryexecution. As the guarantor of the debt, Mr. Yao Zhenhua bore unlimited several and joint liability for the debt of RMB4,207 million.
(13) Due to the case of notarising creditor’s rights documents between Shanghai Aijian Trust Co., Ltd. and ShenzhenShum Yip Logistics Group Co., Ltd., Shenzhen Baoneng Investment Group Co., Ltd., Chia Tai (Shenzhen) DevelopmentCo., Ltd., Hefei Baohui Real Estate Co., Ltd., Hefei Baoneng Real Estate Development Co., Ltd., Shenzhen JushenghuaCo., Ltd., and Mr. Yao Zhenhua, Aijian Trust applied to the court for compulsory execution. As the guarantor of the debt,Mr. Yao Zhenhua was jointly and severally liable for the debt of RMB 416 million.
(14) Due to the dispute over the loan contract with Baoneng Automobile Group Co., Ltd., Chongqing International Trustapplied to the court for compulsory execution, and Mr. Yao Zhenhua, as the guarantor of the debt, was jointly andseverally liable for the debt of RMB 2,186 million.
(15) Due to the case of notarising creditor’s rights documents between China Minsheng Trust Co., Ltd. and ShenzhenShum Yip Logistics Group Co., Ltd., Shenzhen Baoneng Investment Group Co., Ltd., Shenzhen Jushenghua Co., Ltd.,and Mr. Yao Zhenhua, Minsheng Trust applied to the court for compulsory execution, and Mr. Yao Zhenhua, as theguarantor of the debt, was jointly and severally liable for the debt of RMB 496 million.
(16) Due to the case of China Minsheng Trust Co., Ltd., Shenzhen Shum Yip Logistics Group Co., Ltd., ShenzhenBaoneng Investment Group Co., Ltd., Shenzhen Jushenghua Co., Ltd. and Mr. Yao Zhenhua, Minsheng Trust applied tothe court for compulsory execution, and Mr. Yao Zhenhua, as the guarantor of the debt, was jointly and severally liablefor the debt of RMB 2,238 million.
(17) Due to the financial loan contract dispute between AVIC Trust Co., Ltd. and Shenzhen Lingdao Auto Life ServiceCo., Ltd., Shenzhen Baoneng Investment Group Co., Ltd., Shenzhen Jushenghua Co., Ltd., Shenzhen Shum Yip LogisticsGroup Co., Ltd., Tengchong Baoneng Real Estate Co., Ltd., Zhejiang Jintian Real Estate Development Co., Ltd.,Tengchong Beihai Wetland Ecotourism Investment Co., Ltd., and Mr. Yao Zhenhua, AVIC Trust applied to the court forcompulsory execution, and Mr. Yao Zhenhua, as the guarantor of the debt, was jointly and severally liable for the debt ofRMB 984 million.
(18) Due to the financial loan contract dispute between AVIC Trust Co., Ltd. and Shenzhen Shum Yip Logistics GroupCo., Ltd., Shenzhen Baoneng Investment Group Co., Ltd., Shenzhen Jushenghua Co., Ltd., Baoneng Real Estate Co.,Ltd., and Wuhu Baoneng Real Estate Co., Ltd., Baoneng City Co., Ltd., Tengchong Beihai Wetland Eco-TourismInvestment Co., Ltd., and Mr. Yao Zhenhua, AVIC Trust applied to the court for execution. Mr. Yao Zhenhua, as theguarantor of the debt, was jointly and severally liable for the debt of RMB 549 million (principal, exclusive of interest,penalty interest, etc.).
(19) Due to the loan contract dispute between Shenzhen Branch of Ping An Bank Co., Ltd. and Shenzhen Shum YipLogistics Group Co., Ltd., Shenzhen Jushenghua Co., Ltd., Shenzhen Baoneng Investment Group Co., Ltd., BaonengReal Estate Co., Ltd., Shenzhen First Space Operation Management Co., Ltd., Mr. Yao Zhenhua and Baoneng City Co.,Ltd., Shenzhen Branch applied to the court for execution. Mr. Yao Zhenhua, as the guarantor of the debt, was jointly andseverally liable for the debt of RMB 3,433 million. A settlement has been reached in this case and the execution has beenterminated.
(20) Due to the execution of lawsuit costs of the loan contract dispute between Shenzhen Branch of Ping An Bank Co.,Ltd. and Baoneng City Co., Ltd., Baoneng Real Estate Co., Ltd., Baoneng Holdings (China) Co., Ltd., Mr. Yao Zhenhuaand Shenzhen Liujin Investment Co., Ltd., the Higher People’s Court of Guangdong Province appointed ShenzhenIntermediate People’s Court of Guangdong Province to execute the case. Mr. Yao Zhenhua, as the guarantor of the loancontract dispute, was jointly and severally liable for the lawsuit costs of RMB 13,920,800 arising from the loan contractdispute. The said lawsuit costs have been transferred and executed.
(21) Due to the loan contract dispute between Shenzhen Branch of Ping An Bank Co., Ltd. and Baoneng City Co., Ltd.,Baoneng Real Estate Co., Ltd., Baoneng Holdings (China) Co., Ltd., Mr. Yao Zhenhua and Shenzhen Liujin InvestmentCo., Ltd., Shenzhen Branch of Ping An Bank Co., Ltd. applied to the court for execution. Mr. Yao Zhenhua, as theguarantor of the debt, was jointly and severally liable for the debt of RMB 5,562 million. In this case, RMB 3,674 millionwas obtained from auction of residential unit, and RMB 2,226 million was repaid to Ping An Bank for debt repaymentafter deducting the appropriate taxes and fees.
(22) Due to the case of execution of notarising creditor’s rights documents between Chongqing International Trust Co.,Ltd. and Shenzhen Jushenghua Co., Ltd., Zhongshan Runtian, Shenzhen Baoneng Investment Group Co., Ltd., and Mr.Yao Zhenhua, Chongqing International Trust Co., Ltd. Chongqing International Trust Co., Ltd. applied to the court forexecution, and Mr. Yao Zhenhua, as the guarantor of the debt, was jointly and severally liable for the debt of RMB 541million.
(23) Due to the case that Tibet Bank Co., Ltd. sued Lhasa Baochuang Automobile Sales Co., Ltd., Mr. Yao Zhenhua,Shenzhen Baoneng Investment Group Co., Ltd., Shenzhen Jushenghua Co., Ltd., and Shenzhen Shum Yip LogisticsGroup Co., Ltd. were jointly and severally liable for the lawsuit costs of the loan contract dispute, which was executedby the Lhasa Intermediate People’s Court of the Tibet Autonomous Region, Mr. Yao Zhenhua, as the guarantor of theloan contract dispute, was jointly and severally liable for the lawsuit costs of RMB 5.11 million arising from the loancontract dispute.
(24) Due to the case that Tibet Bank Co., Ltd. sued Lhasa Baochuang Automobile Sales Co., Ltd., Mr. Yao Zhenhua,Shenzhen Baoneng Investment Group Co., Ltd., Shenzhen Jushenghua Co., Ltd. and Shenzhen Shum Yip Logistics GroupCo., Ltd. were jointly and severally liable for the debts arising from the loan contract dispute and were executed by LhasaIntermediate People’s Court of the Tibet Autonomous Region. Mr. Yao Zhenhua, as the guarantor of the loan contractdispute, bore joint and several guarantee liability for the debt of RMB 829 million arising from the loan contract dispute,which has been paid off.
(25) Due to the case that Chongqing International Trust Co., Ltd. sued Baoneng Automobile Group Co., Ltd., NanjingBaoneng Urban Development Co., Ltd., Shenzhen Baoneng Investment Group Co., Ltd., Baoneng Holdings (China) Co.,
Ltd. and Yao Zhenhua, as the guarantor of the debt, Mr. Yao Zhenhua was executed by the Chongqing No. 5 IntermediatePeople’s Court, and he was jointly and severally liable for the debt of RMB 2,186 million.Mr. Yao Zhenhua had no debt with comparatively large amount that had not been paid when due.
3. According to the reply of the shareholder Chengtai Group Co., Ltd.: As of December 31, 2023, Chengtai Group Co.,Ltd. has not received relevant information on share freezing and lawsuit, and it had no debt with comparatively largeamount that had not been paid when due.
4. According to the reply of the shareholder Shenzhen Guanlong Logistics Co., Ltd.: As of December 31, 2023, ShenzhenGuanlong Logistics Co., Ltd. has not received relevant information on share freezing and lawsuit, and it had no debt withcomparatively large amount that had not been paid when due.XIV. Major related transaction
1. Related transaction with routine operation concerned
□ Applicable √ Not applicable
2. Related transaction with acquisition of assets or equity, sales of assets or equity concerned
□ Applicable √ Not applicable
3. Related transaction with jointly external investment concerned
□ Applicable √ Not applicable
4. Credits and liabilities with related parties
□ Applicable √ Not applicable
5. Transactions with related financial companies
□ Applicable √ Not applicable
6. Transactions between financial companies controlled by the company and related parties
□ Applicable √ Not applicable
7. Other major related transaction
□ Applicable √ Not applicable
XV. Significant contracts and their implementation
1. Trusteeship, contracting and leasing
(1) Trusteeship
□ Applicable √ Not applicable
(2) Contract
□ Applicable √ Not applicable
(3) Leasing
□ Applicable √ Not applicable
2. Major guarantees
√ Applicable □ Not applicable
Unit: RMB 0,000
| External guarantees of the Company and its subsidiaries (excluding the guarantees for subsidiaries) | ||||||||||
| Name of guarantee object | Date of disclosure of related announcement on guarantee amount | Guarantee amount | Actual date of guarantee | Actual amount of guarantee | type | Collateral (if any) | Counter guarantee circumstance (if any) | Guaranty period | Complete implementation or not | Guarantee for related party or not |
| Total amount of approved external guarantees during the report period (A1) | 0 | Total actual amount of external guarantees during the report period (A2) | 0 | |||||||
| Total amount of approved external guarantees at the end of the report period (A3) | 0 | Total balance of actual external guarantees at the end of the report period (A4) | 0 | |||||||
| Guarantees of the Company for its subsidiaries | ||||||||||
| Name of guarantee object | Date of disclosure of related announcement on guarantee amount | Guarantee amount | Actual date of guarantee | Actual amount of guarantee | type | Collateral (if any) | Counter guarantee circumstance (if any) | Guaranty period | Complete implementation or not | Guarantee for related party or not |
| Xianning CSG Photoelectric Glass Co., Ltd. | April 25, 2022 | 6,000 | May 26, 2022 | 2,865 | Joint liability guarantee | None | None | 1 year | No | No |
| Xianning CSG Photoelectric Glass Co., Ltd. | April 25, 2022 | 5,000 | November 25, 2022 | 95 | Joint liability guarantee | None | None | 1 year | No | No |
| Xianning CSG Photoelectric Glass Co., Ltd. | April 25, 2022 | 3,500 | March 9, 2023 | 3,500 | Joint liability guarantee | None | None | 1 year | No | No |
| Xianning CSG Energy-Saving Glass Co., Ltd. | April 26, 2023 | 5,000 | July 10, 2023 | 4,609 | Joint liability guarantee | None | None | 1 year | No | No |
| Xianning CSG Energy-Saving Glass Co., Ltd. | April 25, 2022 | 8,600 | March 17, 2023 | 1,174 | Joint liability guarantee | None | None | 5 years | No | No |
| Xianning CSG Energy-Saving Glass Co., Ltd. | April 26, 2023 | 8,000 | December 21, 2023 | 0 | Joint liability guarantee | None | None | 1 year | No | No |
| Xianning CSG Energy-Saving Glass Co., Ltd. | April 26, 2023 | 5,000 | May 9, 2023 | 1,500 | Joint liability guarantee | None | None | 1 year | No | No |
| Yichang CSG Photoelectric Glass Co., Ltd. | April 25, 2022 | 1,800 | March 15, 2023 | 800 | Joint liability guarantee | None | None | 1 year | No | No |
| Yichang CSG Photoelectric Glass Co., Ltd. | April 26, 2023 | 600 | October 17, 2023 | 600 | Joint liability guarantee | None | None | 1 year | No | No |
| Yichang CSG Photoelectric Glass Co., Ltd. | April 26, 2023 | 1,200 | August 14, 2023 | 26 | Joint liability guarantee | None | None | 1 year | No | No |
| Yichang CSG Photoelectric Glass Co., Ltd. | April 25, 2022 | 600 | August 16, 2022 | 0 | Joint liability guarantee | None | None | 2 years | No | No |
| Yichang CSG Photoelectric Glass Co., Ltd. | August 10, 2021 | 1,824 | December 17, 2021 | 1,000 | Joint liability guarantee | None | None | 1 year | Yes | No |
| Dongguan CSG PV-tech Co., Ltd. | August 10, 2021 | 3,000 | November 29, 2021 | 2,957 | Joint liability guarantee | None | None | 1 year | Yes | No |
| Hebei Panel Glass Co., Ltd. | April 26, 2023 | 5,000 | June 5, 2023 | 500 | Joint liability guarantee | None | None | 1 year | No | No |
| Hebei Panel Glass Co., Ltd. | April 26, 2023 | 5,000 | August 9, 2023 | 1,248 | Joint liability guarantee | None | None | 1 year | No | No |
| Hebei Panel Glass Co., Ltd. | April 25, 2022 | 2,500 | May 16, 2022 | 0 | Joint liability guarantee | None | None | 3 years | No | No |
| Hebei Panel Glass Co., Ltd. | October 30, 2021 | 16,500 | December 17, 2021 | 10,541 | Joint liability guarantee | None | None | 5 years | No | No |
| Hebei CSG Glass Co., Ltd. | April 26, 2023 | 3,000 | May 8, 2023 | 2,950 | Joint liability guarantee | None | None | 1 year | No | No |
| Hebei CSG Glass Co., Ltd. | April 26, 2023 | 16,000 | June 5, 2023 | 8,093 | Joint liability guarantee | None | None | 1 year | No | No |
| Hebei CSG Glass Co., Ltd. | April 25, 2022 | 2,500 | May 16, 2022 | 0 | Joint liability guarantee | None | None | 3 years | No | No |
| Dongguan CSG Architectural Glass Co., Ltd. | June 29, 2021 | 5,000 | September 13, 2021 | 0 | Joint liability guarantee | None | None | 2 years | Yes | No |
| Dongguan CSG Architectural Glass Co., Ltd. | April 26, 2023 | 5,000 | September 18, 2023 | 1,000 | Joint liability guarantee | None | None | 1 year | No | No |
| Dongguan CSG Architectural Glass Co., Ltd. | April 25, 2022 | 10,000 | January 6, 2023 | 3,143 | Joint liability guarantee | None | None | 1 year | No | No |
| Xianning CSG Glass Co., Ltd. | April 26, 2023 | 7,000 | July 14, 2023 | 6,955 | Joint liability guarantee | None | None | 1 year | No | No |
| Xianning CSG Glass Co., Ltd. | April 26, 2023 | 5,000 | August 16, 2023 | 1,238 | Joint liability guarantee | None | None | 4 years | No | No |
| Xianning CSG Glass Co., Ltd. | April 26, 2023 | 5,000 | November 28, 2023 | 0 | Joint liability guarantee | None | None | 1 year | No | No |
| Xianning CSG Glass Co., Ltd. | December 25, 2021 | 15,000 | March 25, 2022 | 10,689 | Joint liability guarantee | None | None | 7 years | No | No |
| Xianning CSG Glass Co., Ltd. | April 26, 2023 | 50,000 | June 2, 2023 | 31,004 | Joint liability guarantee | None | None | 7 years | No | No |
| Xianning CSG Glass Co., Ltd. | April 26, 2023 | 20,000 | June 2, 2023 | 14,814 | Joint liability guarantee | None | None | 1 year | No | No |
| Xianning CSG Glass Co., Ltd. | April 26, 2023 | 12,000 | June 9, 2023 | 5,533 | Joint liability guarantee | None | None | 5 years | No | No |
| Xianning CSG Glass Co., Ltd. | June 29, 2021 | 20,000 | July 7, 2021 | 12,914 | Joint liability guarantee | None | None | 5 years | No | No |
| Chengdu CSG Glass Co., Ltd. | April 26, 2023 | 5,000 | August 9, 2023 | 4,020 | Joint liability guarantee | None | None | 1 year | No | No |
| Chengdu CSG Glass Co., Ltd. | December 25, 2021 | 5,000 | February 17, 2022 | 3,000 | Joint liability guarantee | None | None | 1 year | Yes | No |
| Chengdu CSG Glass Co., Ltd. | April 26, 2023 | 2,000 | October 7, 2023 | 0 | Joint liability guarantee | None | None | 1 year | No | No |
| Chengdu CSG Glass Co., Ltd. | April 26, 2023 | 3,000 | September 20, 2023 | 1,000 | Joint liability guarantee | None | None | 1 year | No | No |
| Chengdu CSG Glass Co., Ltd. | April 25, 2022 | 10,000 | November 16, 2022 | 4,000 | Joint liability guarantee | None | None | 1 year | No | No |
| Chengdu CSG Glass Co., Ltd. | April 25, 2022 | 5,000 | November 25, 2022 | 100 | Joint liability guarantee | None | None | 1 year | No | No |
| Chengdu CSG Glass Co., Ltd. | April 25, 2022 | 5,000 | November 25, 2022 | 1,959 | Joint liability guarantee | None | None | 3 years | No | No |
| Sichuan CSG Energy Conservation Glass Co., Ltd. | December 25, 2021 | 8,000 | April 15, 2022 | 4,200 | Joint liability guarantee | None | None | 1 year | Yes | No |
| Sichuan CSG Energy Conservation Glass Co., Ltd. | April 26, 2023 | 3,000 | September 20, 2023 | 2,000 | Joint liability guarantee | None | None | 1 year | No | No |
| Sichuan CSG Energy Conservation Glass Co., Ltd. | April 26, 2023 | 5,000 | October 7, 2023 | 3,000 | Joint liability guarantee | None | None | 1 year | No | No |
| Sichuan CSG Energy Conservation Glass Co., Ltd. | April 26, 2023 | 10,000 | September 19, 2023 | 3,000 | Joint liability guarantee | None | None | 1 year | No | No |
| Sichuan CSG Energy Conservation Glass Co., Ltd. | April 26, 2023 | 5,000 | December 25, 2023 | 0 | Joint liability guarantee | None | None | 1 year | No | No |
| Sichuan CSG Energy Conservation Glass Co., Ltd. | April 26, 2023 | 12,000 | June 19, 2023 | 5,000 | Joint liability guarantee | None | None | 1 year | No | No |
| Wujiang CSG Glass Co., Ltd. | February 19, 2021 | 10,000 | March 12, 2021 | 6,044 | Joint liability guarantee | None | None | 4 years | No | No |
| Wujiang CSG Glass Co., Ltd. | April 25, 2022 | 10,000 | February 7, 2023 | 6,945 | Joint liability guarantee | None | None | 1 year | No | No |
| Wujiang CSG Glass Co., Ltd. | April 25, 2022 | 5,000 | February 28, 2023 | 1,177 | Joint liability guarantee | None | None | 1 year | No | No |
| Wujiang CSG Glass Co., Ltd. | April 25, 2022 | 6,000 | April 20, 2023 | 0 | Joint liability guarantee | None | None | 1 year | No | No |
| Wujiang CSG Glass Co., Ltd. | April 26, 2023 | 5,000 | August 9, 2023 | 0 | Joint liability guarantee | None | None | 1 year | No | No |
| CSG (Suzhou) Corporate Headquarters Management Co., Ltd. | April 26, 2023 | 15,700 | October 8, 2023 | 0 | Joint liability guarantee | None | None | 5 years | No | No |
| Wujiang CSG East China Architectural Glass Co., Ltd. | April 25, 2022 | 3,000 | March 7, 2023 | 0 | Joint liability guarantee | None | None | 1 year | No | No |
| Wujiang CSG East China Architectural Glass Co., Ltd. | April 25, 2022 | 10,000 | February 7, 2023 | 2,000 | Joint liability guarantee | None | None | 1 year | No | No |
| Wujiang CSG East China Architectural Glass Co., Ltd. | April 25, 2022 | 12,400 | May 26, 2022 | 3,118 | Joint liability guarantee | None | None | 5 years | No | No |
| Wujiang CSG East China Architectural Glass Co., Ltd. | April 25, 2022 | 6,000 | April 20, 2023 | 0 | Joint liability guarantee | None | None | 1 year | No | No |
| Wujiang CSG East China Architectural Glass Co., Ltd. | April 25, 2022 | 5,000 | April 23, 2023 | 1,982 | Joint liability guarantee | None | None | 1 year | No | No |
| Dongguan CSG Solar Glass Co., Ltd. | April 26, 2023 | 5,000 | August 9, 2023 | 3,215 | Joint liability guarantee | None | None | 1 year | No | No |
| Dongguan CSG Solar Glass Co., Ltd. | April 25, 2022 | 4,000 | July 21, 2022 | 1,515 | Joint liability guarantee | None | None | 5 years | No | No |
| Anhui CSG New Energy Material Technology Co., Ltd. | April 26, 2023 | 33,000 | June 30, 2023 | 0 | Joint liability guarantee | None | None | 1 year | No | No |
| Guangxi CSG New Energy Material Technology Co., Ltd. | April 26, 2023 | June 30, 2023 | 0 | Joint liability guarantee | None | None | 1 year | No | No | |
| Zhaoqing CSG Energy-Saving Glass Co., Ltd. | April 26, 2023 | June 30, 2023 | 1,903 | Joint liability guarantee | None | None | 1 year | No | No |
| Dongguan CSG Photovoltaic Technology Co., Ltd. | April 26, 2023 | June 30, 2023 | 2,318 | Joint liability guarantee | None | None | 1 year | No | No | |
| Dongguan CSG Architectural Glass Co., Ltd. | April 26, 2023 | June 30, 2023 | 0 | Joint liability guarantee | None | None | 1 year | No | No | |
| Dongguan CSG Solar Glass Co., Ltd. | April 26, 2023 | June 30, 2023 | 4,787 | Joint liability guarantee | None | None | 1 year | No | No | |
| Dongguan CSG Solar Glass Co., Ltd. | April 25, 2022 | 8,000 | June 7, 2022 | 0 | Joint liability guarantee | None | None | 1 year | Yes | No |
| Dongguan CSG Solar Glass Co., Ltd. | April 25, 2022 | 9,000 | May 31, 2022 | 5,276 | Joint liability guarantee | None | None | 4 years | No | No |
| Dongguan CSG Solar Glass Co., Ltd. | April 25, 2022 | 6,000 | August 11, 2022 | 0 | Joint liability guarantee | None | None | 1 year | Yes | No |
| Qingyuan CSG Energy-Saving New Materials Co., Ltd. | April 26, 2023 | 6,000 | December 27, 2023 | 0 | Joint liability guarantee | None | None | 1 year | No | No |
| Qingyuan CSG Energy-Saving New Materials Co., Ltd. | April 25, 2022 | 10,000 | January 6, 2023 | 2,098 | Joint liability guarantee | None | None | 1 year | No | No |
| Qingyuan CSG Energy-Saving New Materials Co., Ltd. | December 25, 2021 | 5,000 | December 2, 2022 | 100 | Joint liability guarantee | None | None | 1 year | Yes | No |
| Qingyuan CSG Energy-Saving New Materials Co., Ltd. | April 25, 2022 | 37,400 | August 4, 2022 | 0 | Joint liability guarantee | None | None | 5 years | No | No |
| Qingyuan CSG Energy-Saving New Materials Co., Ltd. | April 25, 2022 | 10,000 | April 24, 2023 | 9,852 | Joint liability guarantee | None | None | 1 year | No | No |
| Yichang CSG Display Co., Ltd. | April 25, 2022 | 1,800 | March 15, 2023 | 1,287 | Joint liability guarantee | None | None | 1 year | No | No |
| Yichang CSG Display Co., Ltd. | April 25, 2022 | 600 | February 24, 2023 | 600 | Joint liability guarantee | None | None | 1 year | No | No |
| Yichang CSG Display Co., Ltd. | April 25, 2022 | 3,000 | June 24, 2022 | 2,650 | Joint liability guarantee | None | None | 1 year | No | No |
| Yichang CSG Polysilicon Co., Ltd. | April 26, 2023 | 1,000 | November 28, 2023 | 0 | Joint liability guarantee | None | None | 1 year | No | No |
| Tianjin CSG Energy-Saving Glass Co., Ltd. | April 25, 2022 | 3,000 | March 9, 2023 | 613 | Joint liability guarantee | None | None | 1 year | No | No |
| Tianjin CSG Energy-Saving Glass Co., Ltd. | April 26, 2023 | 5,000 | July 10, 2023 | 2,800 | Joint liability guarantee | None | None | 1 year | No | No |
| Tianjin CSG Energy-Saving Glass Co., Ltd. | April 26, 2023 | 3,000 | August 11, 2023 | 500 | Joint liability guarantee | None | None | 1 year | No | No |
| Tianjin CSG Energy-Saving Glass Co., Ltd. | February 19, 2021 | 7,000 | March 23, 2021 | 4,137 | Joint liability guarantee | None | None | 4 years | No | No |
| Tianjin CSG Energy-Saving Glass Co., Ltd. | April 26, 2023 | 2,000 | August 10, 2023 | 1,303 | Joint liability guarantee | None | None | 1 year | No | No |
| Anhui CSG New Energy Material Technology Co., Ltd. | August 10, 2021 | 70,000 | October 19, 2021 | 45,102 | Joint liability guarantee | None | None | 6 years | No | No |
| Anhui CSG New Energy Material Technology Co., Ltd. | August 10, 2021 | 180,000 | August 28, 2021 | 110,920 | Joint liability guarantee | None | None | 7 years | No | No |
| Anhui CSG New Energy Material Technology Co., Ltd. | April 25, 2022 | 35,000 | July 5, 2022 | 26,000 | Joint liability guarantee | None | None | 3 years | No | No |
| Anhui CSG New Energy Material Technology Co., Ltd. | April 25, 2022 | 20,000 | February 6, 2023 | 7,252 | Joint liability guarantee | None | None | 3 years | No | No |
| Anhui CSG New Energy Material Technology Co., Ltd. | April 26, 2023 | 30,000 | May 10, 2023 | 6,869 | Joint liability guarantee | None | None | 1 year | No | No |
| Anhui CSG New Energy Material Technology Co., Ltd. | December 25, 2021 | 50,000 | March 30, 2022 | 25,795 | Joint liability guarantee | None | None | 9 years | No | No |
| Anhui CSG New Energy Material Technology Co., Ltd. | April 26, 2023 | 10,000 | August 30, 2023 | 0 | Joint liability guarantee | None | None | 1 year | No | No |
| Anhui CSG Silicon Valley Mingdu Mining Development Co., Ltd. | April 26, 2023 | 43,379 | July 6, 2023 | 39,000 | Joint liability guarantee | None | None | 10 years | No | No |
| Anhui CSG Quartz Materials Co., Ltd. | June 29, 2021 | 9,000 | September 13, 2021 | 5,696 | Joint liability guarantee | None | None | 5 years | No | No |
| Anhui CSG Quartz Materials Co., Ltd. | April 26, 2023 | 4,000 | July 19, 2023 | 3,000 | Joint liability guarantee | None | None | 1 year | No | No |
| Guangxi CSG Mining Co., Ltd. | April 26, 2023 | 27,400 | July 6, 2023 | 5,000 | Joint liability guarantee | None | None | 8 years | No | No |
| Guangxi CSG Quartz Materials Co., Ltd. | April 26, 2023 | July 6, 2023 | 5,000 | Joint liability guarantee | None | None | 8 years | No | No | |
| Guangxi CSG Mining Co., Ltd. | April 26, 2023 | 10,000 | June 7, 2023 | 0 | Joint liability guarantee | None | None | 5 years | No | No |
| Guangxi CSG Quartz Materials Co., Ltd. | April 26, 2023 | 10,000 | June 7, 2023 | 0 | Joint liability guarantee | None | None | 5 years | No | No |
| Guangxi CSG New Energy Materials Tech Co., Ltd. | April 25, 2022 | 30,000 | April 4, 2023 | 0 | Joint liability guarantee | None | None | 3 years | No | No |
| Guangxi CSG New Energy Materials Tech Co., Ltd. | April 25, 2022 | 30,000 | June 11, 2022 | 10,450 | Joint liability guarantee | None | None | 3 years | No | No |
| Guangxi CSG New Energy Materials Tech Co., Ltd. | April 25, 2022 | 50,000 | July 26, 2022 | 8,000 | Joint liability guarantee | None | None | 8 years | No | No |
| Guangxi CSG New Energy Materials Tech Co., Ltd. | April 25, 2022 | 80,000 | July 26, 2022 | 28,939 | Joint liability guarantee | None | None | 8 years | No | No |
| Xi'an CSG Energy Saving Glass Technology Co., Ltd. | April 25, 2022 | 34,400 | March 27, 2023 | 14,582 | Joint liability guarantee | None | None | 7 years | No | No |
| Qinghai CSG Risheng New Energy Technology Co., Ltd. | April 26, 2023 | 150,000 | September 26, 2023 | 30,000 | Joint liability guarantee | None | None | 8 years | No | No |
| Qinghai CSG Risheng New Energy Technology Co., Ltd. | April 26, 2023 | 50,000 | October 31, 2023 | 35,292 | Joint liability guarantee | None | None | 7 years | No | No |
| Zhaoqing CSG New Energy Technology Co., Ltd. | April 25, 2022 | 1,530 | April 6, 2023 | 1,202.5 | Joint liability guarantee | None | None | 7 years | No | No |
| Anhui CSG Photovoltaic Energy Co., Ltd. | April 26, 2023 | 10,040 | April 27, 2023 | 3,595 | Joint liability guarantee | None | None | 7 years | No | No |
| Zhanjiang CSG New Energy Co., Ltd. | April 25, 2022 | 1,000 | March 28, 2023 | 950 | Joint liability guarantee | None | None | 5 years | No | No |
| Zhaoqing CSG Energy-Saving Glass Co., Ltd. | April 25, 2022 | 5,000 | May 30, 2022 | 0 | Joint liability guarantee | None | None | 3 years | No | No |
| Zhaoqing CSG Energy-Saving Glass Co., Ltd. | September 22, 2020 | 34,000 | September 25, 2020 | 22,235 | Joint liability guarantee | None | None | 5 years | No | No |
| Dongguan CSG Architectural Glass Co., Ltd. | April 26, 2023 | 48,000 | August 7, 2023 | 2,403 | Joint liability guarantee | None | None | 1 year | No | No |
| Dongguan CSG Solar Glass Co., Ltd. | April 26, 2023 | August 7, 2023 | 0 | Joint liability guarantee | None | None | 1 year | No | No | |
| Dongguan CSG PV-tech Co., Ltd. | April 26, 2023 | August 7, 2023 | 4,735 | Joint liability guarantee | None | None | 1 year | No | No | |
| Anhui CSG New Energy Material Technology Co., Ltd. | April 26, 2023 | August 7, 2023 | 392 | Joint liability guarantee | None | None | 1 year | No | No | |
| Wujiang CSG Glass Co., Ltd. | April 26, 2023 | August 7, 2023 | 0 | Joint liability guarantee | None | None | 1 year | No | No | |
| Chengdu CSG Glass Co., Ltd. | April 26, 2023 | August 7, 2023 | 0 | Joint liability guarantee | None | None | 1 year | No | No | |
| Sichuan CSG Energy Conservation Glass Co., Ltd. | April 26, 2023 | August 7, 2023 | 184 | Joint liability guarantee | None | None | 1 year | No | No | |
| Yichang CSG Polysilicon Co., Ltd. | April 26, 2023 | August 7, 2023 | 6,161 | Joint liability guarantee | None | None | 1 year | No | No | |
| Xianning CSG Glass Co., Ltd. | April 26, 2023 | August 7, 2023 | 0 | Joint liability guarantee | None | None | 1 year | No | No | |
| Xianning CSG Energy-Saving Glass Co., Ltd. | April 26, 2023 | August 7, 2023 | 351 | Joint liability guarantee | None | None | 1 year | No | No | |
| Wujiang CSG East China Architectural Glass Co., Ltd. | April 26, 2023 | August 7, 2023 | 785 | Joint liability guarantee | None | None | 1 year | No | No |
| Tianjin CSG Energy-Saving Glass Co., Ltd. | April 26, 2023 | August 7, 2023 | 2,263 | Joint liability guarantee | None | None | 1 year | No | No | |
| Zhaoqing CSG Energy-Saving Glass Co., Ltd. | April 26, 2023 | August 7, 2023 | 2,875 | Joint liability guarantee | None | None | 1 year | No | No | |
| Total amount of approved guarantees for subsidiaries during the report period (B1) | 666,319 | Total actual amount of guarantees for subsidiaries during the report period (B2) | 321,979 | |||||||
| Total amount of approved guarantees for subsidiaries at the end of the report period (B3) | 1,561,449 | Total balance of actual guarantees for subsidiaries at the end of the report period (B4) | 671,019 | |||||||
| Guarantees of subsidiaries for their subsidiaries | ||||||||||
| Name of guarantee object | Date of disclosure of related announcement on guarantee amount | Guarantee amount | Actual date of guarantee | Actual amount of guarantee | type | Collateral (if any) | Counter guarantee circumstance (if any) | Guaranty period | Complete implementation or not | Guarantee for related party or not |
| Total amount of approved guarantees for subsidiaries during the report period (C1) | 0 | Total actual amount of guarantees for subsidiaries during the report period (C2) | 0 | |||||||
| Total amount of approved guarantees for subsidiaries at the end of the report period (C3) | 0 | Total balance of actual guarantees for subsidiaries at the end of the report period (C4) | 0 | |||||||
| Total amount of the Company’s guarantees (i.e., the sum of the first three items) | ||||||||||
| Total amount of approved guarantees during the report period (A1+B1+C1) | 666,319 | Total actual amount of guarantees during the report period (A2+B2+C2) | 321,979 | |||||||
| Total amount of approved guarantees at the end of the report period (A3+B3+C3) | 1,561,449 | Total actual balance of guarantees at the end of the report period (A4+B4+C4) | 671,019 | |||||||
| The proportion of total actual amount of guarantees ((i.e., A4+B4+C4) in the net assets of the Company | 47.76% | |||||||||
| Including: | ||||||||||
| Balance of guarantees provided for shareholders, actual controllers and its related parties (D) | 0 | |||||||||
| Balance of debt guarantees provided directly or indirectly for guaranteed objects with an asset-liability ratio exceeding 70% (E) | 7,053 | |||||||||
| The amount of guarantees exceeding 50% of the net assets (F) | 0 | |||||||||
| Total guarantee amount of the above three items (D+E+F) | 7,053 |
| Explanation on guarantee responsibility incurred in the report period or evidence showing the description of the possible joint and several liabilities for repayment for the guarantee contracts not yet due (if any) | Nil |
| Explanation on providing external guarantees in violation of prescribed procedures (if any) | Nil |
Note: 1. The 2022 Annual General Meeting of the Company reviewed and passed the Proposal for the 2023 Guarantee Plan, andapproved the Company and its subsidiaries to provide guarantees in a total amount of not exceeding RMB 21,832 million (includingthe effective and unexpired amount) for the 2023 credit lines from financial institutions to guaranteed entities within the scope ofconsolidated statements. Among them, the total amount of guarantees for all guaranteed entities with asset liability ratio of 70% orabove shall not exceed the equivalent amount of RMB 920 million (including the effective and unexpired amount). The Company’sexternal guarantees are all provided for subsidiaries within the scope of consolidated statement. As of December 31, 2023, the actualguarantee balance was RMB 6,710.19 million (of which the actual guarantee balance with liability/asset ratio of 70% or above wasRMB 70.53 million), accounting for 47.76% of the parent company’s net assets of RMB 14,050.8402 million at the end of 2023, and
22.10% of the net assets of RMB 30,362.0573 million. The Company has no overdue guarantee.
2. The Company’s 2022 Annual General Meeting reviewed and passed the Proposal on the Development of Asset Pool Business in2023. In order to achieve the overall management of the Company’s assets such as bills and letters of credit, the General Meeting ofShareholders approved the Company and its subsidiaries to conduct asset pool business of no more than RMB 1.6 billion. Under thepremise of controllable risks, various guarantee methods such as maximum pledge, general pledge, deposit certificate pledge, billpledge, and margin pledge can be adopted for business development. As of December 31, 2023, the actual pledge amount of the assetpool business was RMB 1,279.5397 million, and the financing balance was RMB 1,251.4311 million.Explanation on compound guaranteesNil
3. Entrust others to manage cash assets
(1)Entrusted Financing
□Applicable √ Not applicable
(2) Entrusted loans
□Applicable √ Not applicable
4. Other material contracts
□Applicable √ Not applicable
XVI. Statement on other important matters
√Applicable □ Not applicable
1. Ultra-short-term financing bills
On May 16, 2022, the Company's 2021 Annual General Meeting reviewed and approved the "Proposal on Application
for Registration and Issuance of Medium-Term Notes and Ultra-short-term Financing Bills", which agreed that theCompany would register and issue ultra-short-term financing bills with a registered amount of not more than RMB 1billion, The Company can issue one or more times within the validity period of the registration according to the actualcapital needs and the capital situation of the inter-bank market. On October 30, 2023, the Dealers Association held the128th registration meeting in 2023 and decided to accept the registration of ultra-short-term financing notes with a totalamount of RMB 1 billion and a validity period of two years.
2. Medium-term notes
On May 16, 2022, the Company's 2021 Annual General Meeting reviewed and approved the "Proposal on Applicationfor Registration and Issuance of Medium-term Notes and Ultra-short-term Financing Bills", which agreed that theCompany would register and issue medium-term notes with a registered amount of not more than RMB 2 billion. Actualcapital needs and inter-bank market capital status, can be issued one or more times within the validity period of registration.On October 30, 2023, the Dealers Association held its 128th registration meeting for 2023 and decided to accept theregistration of medium-term notes with a total value of RMB 2 billion and a validity period of two years.
3.Public issuance of corporate bonds
On March 2, 2017, the 2nd Extraordinary General Meeting of Shareholders in 2017 reviewed and approved “the Proposalon the Public Issuance of Corporate Bonds for Qualified Investors". On February 27, 2019, the First Extraordinary GeneralMeeting of Shareholders in 2019 reviewed and approved the “Proposal on Extending the Validity Period of theShareholders' Meeting for the Public Offering of Corporate Bonds to Qualified Investors”, which agreed to issue corporatebonds with a total issue of no more than RMB 2 billion and a term of no more than 10 years. On June 26, 2019, theCompany received the “Approval of Approving CSG Holding Co., Ltd. to Issue Corporate Bonds to Qualified Investors”issued by China Securities Regulatory Commission (ZJXK [2019] No. 1140). On March 24, 2020 and March 25, 2020,the Company issued the first batch of corporate bonds with total amount of RMB 2 billion and valid term of 3 years atthe issuance rate of 6%, and completed the redemption and delisting on March 27, 2023 (the original redemption date forthis bond was March 25, 2023, but due to a statutory rest day, it was postponed to the first trading day thereafter).
4. Public offering of A-share convertible corporate bonds
On 11 July 2022, the Company’s 2nd Extraordinary General Meeting of Shareholders in 2022 reviewed and approvedrelevant proposals on the Company's public offering of A-share convertible corporate bonds, and agreed to issue A-shareconvertible corporate bonds to raise a total amount not exceed RMB 2,800 million (inclusive), with a term of six yearsfrom the date of issuance. Due to factors such as changes in the capital market and the timing of financing, which resultedin immature application and issuance conditions, the Company did not make any substantial progress on the publicoffering of A-share convertible corporate bonds during the valid period as resolved. As of 11 July 2023, the Company’splan for the public offering of A-share convertible corporate bonds expired and automatically lapsed. For furtherinformation, see the Announcement on the Expiry of the Plan for the Public Offering of A-share Convertible CorporateBonds (Announcement number: 2023-025) disclosed by the Company on http://www.cninfo.com.cn dated 12 July 2023.
5. The matter of the special fund of RMB 171 million for talent introduction
Regarding the special fund of RMB 171 million for talent introduction, the Company filed an infringement compensationlawsuit against Zeng Nan and others and Yichang Hongtai Real Estate Co., Ltd. on December 15, 2021, and ShenzhenIntermediate People's Court officially accepted it on January 28, 2022. The first trial of the case was completed inShenzhen Intermediate People's Court on June 21, 2022, and is currently awaiting judgment.
6. Postponed re-election of the Board of Directors and the Supervisory CommitteeThe term of office of the ninth Board of Directors and Supervisory Committee of the Company expired on 21 May 2023,and re-election is progressing steadily as of now. According to Articles 96 and 138 of the Articles of Association of CSGHolding Co., Ltd., if a new director/supervisor is not re-elected in time upon the expiry of the term of office of a
director/supervisor, before the re-elected director/supervisor assumes his/her office, the former director/supervisor shallstill perform the duties of a director/supervisor in accordance with the provisions of laws, administrative regulations,departmental rules and the Articles of Association. Therefore, the members of the ninth Board of Directors andSupervisory Committee are still performing their duties in a normal manner, and the re-election of the Board of Directorsand the Supervisory Committee would not have any adverse impact on the Company’s operation and governance.XVII. Significant events of subsidiaries of the Company
□ Applicable √ Not applicable
Section VII. Changes in Shares and Particulars about
ShareholdersI. Changes in Share Capital
1. Changes in Share Capital
Unit: Share
| Before the Change | Increase/Decrease in the Change (+, -) | After the Change | |||||||
| Amount | Proportion | New shares issued | Bonus shares | Capitalization of public reserve | Others | Subtotal | Amount | Proportion | |
| I. Restricted shares | 4,838,249 | 0.16% | -2,794,847 | -2,794,847 | 2,043,402 | 0.07% | |||
| 1. State-owned shares | |||||||||
| 2. State-owned legal person’s shares | |||||||||
| 3. Other domestic shares | 4,838,249 | 0.16% | -2,794,847 | -2,794,847 | 2,043,402 | 0.07% | |||
| Including: Domestic legal person’s shares | |||||||||
| Domestic natural person’s shares | 4,838,249 | 0.16% | -2,794,847 | -2,794,847 | 2,043,402 | 0.07% | |||
| 4. Foreign shares | |||||||||
| Including: Foreign legal person’s shares | |||||||||
| Foreign natural person’s shares | |||||||||
| II. Unrestricted shares | 3,065,853,858 | 99.84% | 2,794,847 | 2,794,847 | 3,068,648,705 | 99.93% | |||
| 1. RMB Ordinary shares | 1,956,484,798 | 63.71% | 2,794,847 | 2,794,847 | 1,959,279,645 | 63.80% | |||
| 2. Domestically listed foreign shares | 1,109,369,060 | 36.13% | 1,109,369,060 | 36.13% | |||||
| 3. Overseas listed foreign shares | |||||||||
| 4. Others | |||||||||
| III. Total shares | 3,070,692,107 | 100.00% | 0 | 0 | 3,070,692,107 | 100.00% | |||
Reason for equity changes
√Applicable □Not applicable
During the report period, China Securities Depository and Clearing Corporation Limited adjusted the locked-up shares ofsenior management in accordance with regulations, and the Company’s restricted shares and unrestricted shares changedaccordingly.Approval on equity changes
□Applicable √Not applicable
Transfer of ownership of changes in shares
□Applicable √Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable tocommon shareholders of Company in the latest year and period
□Applicable √Not applicable
Other information necessary to be disclosed or need to be disclosed under requirement from security regulators
□Applicable √ Not applicable
2. Changes of restricted shares
√Applicable □ Not applicable
Unit: Share
| Shareholders’ name | Number of restricted shares at the beginning of the period | Number of shares increased in the Period | Number of restricted shares released in the Period | Number of shares restricted at the end of the Period | Reason for restriction | Released date |
| Chen Lin | 1,217,299 | 1,217,299 | Executive lockup stocks shares | Releasing of executive lockup stocks will be implemented according to relevant policies. | ||
| He Jin | 673,200 | 673,200 | Executive lockup stocks shares | Releasing of executive lockup stocks will be implemented according to relevant policies. | ||
| Wang Wenxin | 115,950 | 115,950 | Executive lockup stocks shares | Releasing of executive lockup stocks will be implemented according to relevant policies. | ||
| Chen Chunyan | 36,953 | 36,953 | Executive lockup stocks shares | Releasing of executive lockup stocks will be implemented according to relevant policies. | ||
| Wang Jian | 1,012,000 | 1,012,000 | 0 | Locked in shares after the departure of directors and executives | Releasing of director and executive lockup stocks will be implemented according to relevant policies. | |
| Gao Changkun | 375 | 375 | 0 | Locked in shares after the departure of supervisors | Releasing of supervisor lockup stocks will be implemented according to relevant policies. | |
| Lu Wenhui | 912,973 | 912,973 | 0 | Locked in shares after the departure of executives | Releasing of executive lockup stocks will be implemented according to relevant policies. | |
| Yang Xinyu | 869,499 | 869,499 | 0 | Locked in shares after the departure of executives | Releasing of executive lockup stocks will be implemented according to relevant policies. | |
| total | 4,838,249 | 0 | 2,794,847 | 2,043,402 | -- | -- |
II. Issuance and listing of Securities
1. Security issued (excluding preferred stock) in the report period
□Applicable √Not applicable
2. Particulars about changes of total shares and shareholder structure as well as changes of assets and liabilitystructure
□ Applicable √ Not applicable
3. Existing internal staff shares
□ Applicable √ Not applicable
III. Particulars about shareholder and actual controller of the Company
1. Amount of shareholders of the Company and particulars about shares holding
Unit: Share
| Total shareholders at the end of the report period | 155,443 | Total shareholders at the end of the month before this annual report disclosed | 150,800 | Total preference shareholders with voting rights recovered at end of report period (if applicable) | 0 | Total preference shareholders with voting rights recovered at end of the month before this annual report disclosed (if applicable) | 0 | |||||||
| Shareholder with above 5% shares hold or top 10 shareholders (Excluding shares lent through refinancing) | ||||||||||||||
| Full name of Shareholders | Nature of shareholder | Proportion of shares held | Total shares held at the end of report period | Changes in report period | Amount of restricted shares held | Amount of unrestricted shares held | Number of share pledged, marked or frozen | |||||||
| Share status | Amount | |||||||||||||
| Foresea Life Insurance Co., Ltd. – HailiNiannian | Domestic non state-owned legal person | 15.19% | 466,386,874 | 0 | 0 | 466,386,874 | ||||||||
| Foresea Life Insurance Co., Ltd. – Universal Insurance Products | Domestic non state-owned legal person | 3.86% | 118,425,007 | 0 | 0 | 118,425,007 | ||||||||
| # Shenzhen Sigma C&T Co., Ltd. | Domestic non state-owned legal person | 2.35% | 72,303,835 | 72,303,835 | 0 | 72,303,835 | ||||||||
| Foresea Life Insurance Co., Ltd. – Own Fund | Domestic non state-owned legal person | 2.11% | 64,765,161 | 0 | 0 | 64,765,161 | ||||||||
| China Galaxy International Securities (Hong Kong) Co., Limited | Foreign legal person | 1.34% | 41,034,578 | -175,400 | 0 | 41,034,578 | ||||||||
| China Merchants Securities (Hong Kong) Limited | Foreign legal person | 1.11% | 34,109,837 | -3,194,154 | 0 | 34,109,837 | ||||||||
| Hong Kong Securities Clearing Co., Ltd. | Foreign legal person | 0.85% | 26,196,114 | 4,562,069 | 0 | 26,196,114 | ||||||||
| VANGUARD EMERGING MARKETS STOCK INDEX FUND | Foreign legal person | 0.64% | 19,595,573 | 230,000 | 0 | 19,595,573 | ||||
| Zhongshan Runtian Investment Co., Ltd. | Domestic non state-owned legal person | 0.62% | 18,983,447 | 0 | 0 | 18,983,447 | Pledged | 18,980,000 | ||
| Marked | 18,980,000 | |||||||||
| Frozen | 3,447 | |||||||||
| VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND | Foreign legal person | 0.57% | 17,537,213 | 0 | 0 | 17,537,213 | ||||
| Strategic investors or general legal person becomes top 10 shareholders due to shares issued (if applicable) | N/A | |||||||||
| Explanation on associated relationship among the aforesaid shareholders | As of the end of the report period, among shareholders as listed above, Foresea Life Insurance Co., Ltd.-HailiNiannian, Foresea Life Insurance Co., Ltd.-Universal Insurance Products, Foresea Life Insurance Co., Ltd.-Own Fund are all held by Foresea Life Insurance Co., Ltd. Shenzhen Jushenghua Co., Ltd., which holds 51% equity of Foresea Life Insurance Co., Ltd., holds 100% equity of Zhongshan Runtian Investment Co.,Ltd and Chengtai Group Co. Ltd., through Shenzhen Hualitong Investment Co., Ltd. Chengtai Group Co., Ltd. holds 40,187,904 shares through China Galaxy International Securities (Hong Kong) Co., Limited. | |||||||||
| Explanation of the above-mentioned shareholders involving entrusted/entrusted voting rights and abstention from voting right | N/A | |||||||||
| Special instructions on the existence of special repurchase account among the top 10 shareholders (if any) | N/A | |||||||||
| Particular about top ten shareholders with unrestricted shares held | ||||||||||
| Shareholders’ name | Amount of unrestricted shares held at year-end | Type of shares | ||||||||
| Type | Amount | |||||||||
| Foresea Life Insurance Co., Ltd. – HailiNiannian | 466,386,874 | RMB ordinary shares | 466,386,874 | |||||||
| Foresea Life Insurance Co., Ltd. – Universal Insurance Products | 118,425,007 | RMB ordinary shares | 118,425,007 | |||||||
| # Shenzhen Sigma C&T Co., Ltd. | 72,303,835 | RMB ordinary shares | 72,303,835 | |||||||
| Foresea Life Insurance Co., Ltd. – Own Fund | 64,765,161 | RMB ordinary shares | 64,765,161 | |||||||
| China Galaxy International Securities (Hong Kong) Co., Limited | 41,034,578 | Domestically listed foreign shares | 41,034,578 | |||||||
| China Merchants Securities (Hong Kong) Limited | 34,109,837 | Domestically listed foreign shares | 34,109,837 | |||||||
| Hong Kong Securities Clearing Co., Ltd. | 26,196,114 | RMB ordinary shares | 26,196,114 | |||||||
| VANGUARD EMERGING MARKETS STOCK INDEX FUND | 19,595,573 | Domestically listed foreign shares | 19,595,573 | |||||||
| Zhongshan Runtian Investment Co., Ltd. | 18,983,447 | RMB ordinary shares | 18,983,447 | |||||||
| VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND | 17,537,213 | Domestically listed foreign shares | 17,537,213 | |||||||
Special note: On July 11, 2022, at the Company's Second Extraordinary General Meeting in 2022, Foresea Life InsuranceCo., Ltd. voted in favor of all proposals, and Zhongshan Runtian Investment Co., Ltd. voted against all proposals,Chengtai Group Co., Ltd. voted against all the proposals with the shares held by China Galaxy International Securities(Hong Kong) Co., Limited; on August 3, 2022, at the Company's Third Extraordinary General Meeting in 2022, ForeseaLife Insurance Co., Ltd. voted in favor of all proposals, and Zhongshan Runtian Investment Co., Ltd. voted against allproposals.Top 10 shareholders involved in refinancing shares lending
□ Applicable √ Not applicable
Changes in top 10 shareholders compared with the prior period
√ Applicable □ Not applicable
Unit: share
| Changes in top 10 shareholders compared with the end of the prior period | |||||
| Full name of shareholder | Newly added to or exiting from top 10 shareholders in the report period | Shares lent in refinancing and not yet returned at the period-end | Shares in the ordinary account and credit account plus shares lent in refinancing and not yet returned at the period-end | ||
| Total shares | As % of total share capital | Total shares | As % of total share capital | ||
| #Shenzhen Sigma C&T Co., Ltd. | Newly added | 0 | 0.00% | 72,303,835 | 2.35% |
| Vanguard Total International Stock Index Fund | Newly added | 0 | 0.00% | 17,537,213 | 0.57% |
| China Life Insurance Co., Ltd. - Traditional - General Insurance Products - 005L-CT001 Shen | Exiting | 0 | 0.00% | 0 | 0.00% |
| #He Xinhai | Exiting | 0 | 0.00% | 0 | 0.00% |
Whether the company’s top 10 common shareholders and the top 10 shareholders of ordinary shares subject to unlimitedsales have agreed to buy back transactions during the report period
□Yes √ No
The top 10 shareholders of ordinary shares and the top 10 shareholders of ordinary shares with unrestricted salesconditions did not engage in any agreed repurchase transactions during the reporting period.
| Statement on associated relationship or consistent action among the above shareholders: | As of the end of the report period, among shareholders as listed above, Foresea Life Insurance Co., Ltd.-HailiNiannian, Foresea Life Insurance Co., Ltd.-Universal Insurance Products, Foresea Life Insurance Co., Ltd.-Own Fund are all held by Foresea Life Insurance Co., Ltd. Shenzhen Jushenghua Co., Ltd., which holds 51% equity of Foresea Life Insurance Co., Ltd., holds 100% equity of Zhongshan Runtian Investment Co.,Ltd and Chengtai Group Co. Ltd., through Shenzhen Hualitong Investment Co., Ltd. Chengtai Group Co., Ltd. holds 40,187,904 shares through China Galaxy International Securities (Hong Kong) Co., Limited. |
| Explanation on shareholders involving margin business (if applicable) | As of the end of the report period, shareholder Shenzhen Sigma C&T Co., Ltd. holds 0 shares of the Company through an ordinary account, and 72,303,835 shares of the Company through the customer credit transaction guarantee securities account of Huatai Securities Co., Ltd., totaling 72,303,835 shares of the Company. |
2. Controlling shareholder of the Company
The nature of controlling shareholders: No holding bodyThe type of controlling shareholder: Not existExplanation on the Company without controlling shareholderCurrently the Company has no controlling shareholder. Foresea Life Insurance Co., Ltd. is the Company's largestshareholder that has totally held 657,577,954 shares of the Company via Foresea Life Insurance Co., Ltd.–HailiNiannian,Foresea Life Insurance Co., Ltd.–universal insurance products, Foresea Life Insurance Co., Ltd.–own fund, Foresea LifeInsurance Co., Ltd.–a combination of its own funds together with Huatai till the end of the report period, which accountsfor 21.41% of the Company’s total shares. Shenzhen Jushenghua Co., Ltd., with a 51% interest in the Company’sshareholder Foresea Life Insurance Co., Ltd., holds a 51% interest in the Company’s shareholder Shenzhen GuanlongLogistics Co., Ltd. via Shenzhen Hualitong Investment Co., Ltd., in addition to the holding of 100% equity interests inthe Company’s shareholders Zhongshan Runtian Investment Co., Ltd. and Chengtai Group Co., Ltd. And, ZhongshanRuntian Investment Co., Ltd. Chengtai Group Co., Ltd., Shenzhen Guanlong Logistics Co., Ltd., and Foresea LifeInsurance Co., Ltd. combined hold 728,430,489 shares in the Company, accounting for 23.72% of the Company’s totalshares, which is less than 30%. Meanwhile, the number of directors recommended by the aforesaid shareholders was nomore than half of the total number of members of the Company’s Board of Directors.Other shareholders of the Company hold less than 5% of the shares.Changes of controlling shareholders in the report period
□ Applicable √ Not applicable
3. Actual controller of the Company and its concerted actors
The nature of actual controller: no actual controllerThe type of actual controller: Not existExplanation on the Company without actual controllerCurrently the Company has no actual controller. Foresea Life Insurance Co., Ltd. is the Company's largest shareholderthat has totally held 657,577,954 shares of the Company via Foresea Life Insurance Co., Ltd.–HailiNiannian, ForeseaLife Insurance Co., Ltd.–universal insurance products, Foresea Life Insurance Co., Ltd.–own fund, Foresea Life InsuranceCo., Ltd.–a combination of its own funds together with Huatai till the end of the report period, which accounts for 21.41%of the Company’s total shares. Shenzhen Jushenghua Co., Ltd., with a 51% interest in the Company’s shareholder ForeseaLife Insurance Co., Ltd., holds a 51% interest in the Company’s shareholder Shenzhen Guanlong Logistics Co., Ltd. viaShenzhen Hualitong Investment Co., Ltd., in addition to the holding of 100% equity interests in the Company’sshareholders Zhongshan Runtian Investment Co., Ltd. and Chengtai Group Co., Ltd. And, Zhongshan Runtian InvestmentCo., Ltd. Chengtai Group Co., Ltd., Shenzhen Guanlong Logistics Co., Ltd., and Foresea Life Insurance Co., Ltd.combined hold 728,430,489 shares in the Company, accounting for 23.72% of the Company’s total shares, which is lessthan 30%. Meanwhile, the number of directors recommended by the aforesaid shareholders was no more than half of thetotal number of members of the Company’s Board of Directors.Shareholders with over 10% shares held in ultimate controlling level
√Yes □No
□ Legal person √ Natural person
Shares held in ultimate controlling level
| Shareholders | Nationality | Whether to obtain the right of abode in |
| other countries or regions | ||
| Yao Zhenhua | China | No |
| Major occupations and duties | Chairman of Shenzhen Baoneng Investment Group Co., Ltd. | |
| Situation of holding domestic and abroad listed companies over the past 10 years | N/A | |
Changes of actual controller in the report period
□ Applicable √ Not applicable
Property right and controlling relationship between the largest shareholder and the Company is as follow:
Actual controller controlling of the Company by entrust or other assets management
□Applicable √Not applicable
4. The company's controlling shareholder or the largest shareholder and its concerted actor’s cumulativepledged shares account for 80% of the company's shares held by them
□ Applicable √ Not applicable
5. Particulars about other legal person shareholders holding over 10% of the company's shares
□ Applicable √ Not applicable
6. Limitation on share reduction of controlling shareholders, actual controllers, recombination party andother commitment subjects
□ Applicable √ Not applicable
IV. Specific implementation of share repurchase in the report periodImplementation progress of share repurchase
□ Applicable √ Not applicable
Implementation progress of reducing share repurchased by centralized bidding
□ Applicable √ Not applicable
Section VIII. Preferred shares
□Applicable √ Not applicable
There were no preferred shares in the Company during the report period.
Section IX. Bonds
□Applicable √ Not applicable
On the approval date of this report, the Company does not have any existing bonds.
Section X. Financial ReportI. Report of the Auditors
| Type of Auditor’s Opinion | Standard and unqualified |
| Issue date of Report of the Auditors | April 24, 2024 |
| Name of Auditor’s organization | Grant Thornton Zhitong Certified Public Accountants LLP |
| Reference number of Report of the Auditors | GTCNSZ（2024）NO.441A014347 |
| Name of CPA | Su Yang, Yang Hua |
Auditor’s Report
To the shareholders of CSG HOLDING CO., LTD.
I. OpinionWe have audited the financial statements of CSG Holding Co., Ltd. (hereinafter referred to as"the Group"), which comprise the consolidated and company balance sheets as of December 31, 2023,and the consolidated and company statements of profit or loss, consolidated and company statementsof cash flows, consolidated and company statements of changes in equity, and related notes to thefinancial statements for the year then ended.
In our opinion, the accompanying financial statements present fairly, in all material respects, theconsolidated and company financial position of the Group as of December 31, 2023, and theconsolidated and company financial performance and cash flows for the year then ended inaccordance with the Chinese Accounting Standards for Business Enterprises (ASBE).II. Basis of OpinionWe conducted our audit in accordance with the Chinese Standards on Auditing as applicablein China. Our responsibilities under those standards are further described in the Auditor’sResponsibilities for the Audit of the Financial Statements section of our report. We areindependent of the Group in accordance with the Code of Ethics for Professional Accountants inChina and have fulfilled our other ethical responsibilities in accordance with these requirements.We believe that the audit evidence we have obtained is sufficient and appropriate to provide abasis for our opinion.III. Key audit matters
Key audit matters are those matters that, in our professional judgment, are of the mostsignificance in our audit of the financial statements for the current period. These matters wereaddressed in the context of our audit of the financial statements as a whole, and in forming ouropinion thereon, we do not provide a separate opinion on these matters.(A)Revenue recognitionFor detailed disclosures, please refer to Note of the financial statements.
1. Matter Description
The Group's sales revenue primarily comes from providing float glass, photovoltaic glassarchitectural glass, solar industry-related products, electronic glass, and display devices tocustomers. In the fiscal year 2023, the Group achieved operating revenue of 18,194.86 millionyuan. Since revenue is one of the Group's key performance indicators and has a crucial impact onthe financial statements, we identified revenue recognition as a key audit matter.
2. Audit response
We performed the following audit procedures mainly related to revenue recognition:
(1) Understanding and evaluating the design of internal controls related to revenuerecognition, and testing the effectiveness of key control processes.
(2) Sampling inspection of significant sales contracts to identify contract terms andconditions related to the control transfer point, and assess whether the specific method of revenuerecognition by the Group complies with the Chinese Accounting Standards for BusinessEnterprises (ASBE).
(3) Substantive analytical procedures on operating revenue and gross profit margins bymonth, product, customer, etc., to identify significant or abnormal fluctuations and analyze thereasons for the fluctuations.
(4) Selecting samples and performing detailed testing on sales revenue for the current period,reviewing sales contracts, verifying supporting documents related to revenue recognition(including orders, delivery notes, customs declarations, invoices, etc.), and confirming theauthenticity and accuracy of revenue in conjunction with customer sales receipts.
(5) Employing sampling to select customers and performing circularization procedures ontheir annual transaction amounts and accounts receivable balances.
(6) Conducting cutoff tests on revenue recognized before and after the balance sheet date,obtaining relevant supporting documents, verifying key timing points of revenue recognition, to
ascertain whether revenue is recognized in the appropriate period.
(7) Checking whether revenue-related information has been appropriately presented anddisclosed in the financial statements.(B) Provision for Impairment of Fixed AssetsFor detailed disclosures, please refer to Note of the financial statements.
1.Matter Description
As of December 31, 2023, the book value of fixed assets in the consolidated financialstatements of the Group amounted to 13,145.56 million yuan, accounting for 43.30% of the totalassets in the consolidated financial statements, which is the largest component of the consolidatedfinancial statement assets; the impairment loss provided for fixed assets during the reportingperiod amounted to 251.24 million yuan. The management of the Group (hereinafter referred toas "the management") assessed whether there were indicators of impairment for these fixed assets.For the fixed assets identified with indicators of impairment, the management estimated therecoverable amount of the fixed assets and compared it with the carrying amount to confirm theamount of impairment provision to be recognized. As the identification of indicators of fixedasset impairment and the measurement of recoverable amount involve significant accountingestimates and professional judgment by management, we identified the provision for impairmentof fixed assets as a key audit matter.
2. Audit response
We performed the following audit procedures mainly related to the provision for impairmentof fixed assets:
(1) Understanding and evaluating the design of internal controls related to fixed assetmanagement, and testing the effectiveness of key control processes.
(2) Reviewing the methods and assumptions used by the Group for impairment testing offixed assets, and evaluating whether the impairment methods employed by management complywith the requirements of the Chinese Accounting Standards for Business Enterprises (ASBE).
(3) Physically inspecting fixed assets and observing their usage and storage conditions.
(4) Recalculating the recoverable amount of fixed assets and reviewing the evaluationmethods and key assumptions adopted by the external assessment institution hired bymanagement, conducted by assessment experts appointed by registered accountants.
(5) Evaluating the competence, professionalism, and objectivity of the assessment experts
appointed by management and the assessment experts appointed by registered accountants.
4. Other Matters
The management of CSG Holding Co., Ltd. is responsible for other information. Otherinformation includes the information covered in the 2023 annual report of CSG Holding Co., Ltd.,but excludes the financial statements and our audit report.Our audit opinion on the financial statements does not cover other information, and we donot provide any form of assurance conclusion on other information.In conjunction with our audit of the financial statements, our responsibility is to read theother information and, in doing so, consider whether the other information is materiallyinconsistent with the financial statements or our knowledge obtained during the audit process orappears to be materially misstated.If we determine, based on the work we have performed, that other information is materiallymisstated, we should report that fact. We have nothing to report in this regard.
5. Responsibility of management and those charged with governance for financialstatements
The management of CSG Holding Co., Ltd. is responsible for preparing the financialstatements in accordance with the Chinese Accounting Standards for Business Enterprises (ASBE)to achieve fair presentation and for designing, implementing, and maintaining internal controlnecessary to ensure that the financial statements are free from material misstatement due to fraudor error.
In preparing the financial statements, management is responsible for assessing the Group'sability to continue as a going concern, disclosing matters related to going concern, and using thegoing concern assumption, unless management intends to liquidate the Group, cease operations,or have no other realistic option.
The governance is responsible for overseeing the financial reporting process of CSG HoldingCo., Ltd..
6. Responsibility of certified public accountants for auditing financial statements
Our objective is to obtain reasonable assurance about whether the financial statements as awhole are free from material misstatement due to fraud or error and to issue an audit report thatincludes our audit opinion. Reasonable assurance is a high level of assurance, but it is not aguarantee that an audit conducted in accordance with auditing standards will always detect a
material misstatement when it exists. Misstatements can result from fraud or error, and the riskof not detecting a material misstatement due to fraud is higher than the risk of not detecting amaterial misstatement due to error.In the process of performing audit work in accordance with auditing standards, we exerciseprofessional judgment and maintain professional skepticism. At the same time, we also performthe following tasks:
(1) Identify and assess the risk of material misstatement of the financial statements due tofraud or error, design and implement audit procedures to address these risks, and obtain sufficientand appropriate audit evidence as a basis for issuing the audit opinion. Since fraud may involvecollusion, forgery, intentional omissions, misrepresentations, or override of internal controls, therisk of not detecting a material misstatement due to fraud is higher than the risk of not detectinga material misstatement due to error.
(2) Understand internal controls related to the audit and design appropriate audit proceduresaccordingly.
(3) Evaluate the appropriateness of management's selection of accounting policies and thereasonableness of accounting estimates and related disclosures.
(4) Conclude on the appropriateness of management's use of the going concern assumption.At the same time, based on the audit evidence obtained, conclude whether there is a significantuncertainty that may cast significant doubt on the Group's ability to continue as a going concern.If we conclude that there is a significant uncertainty, auditing standards require us to drawattention in the audit report to the related disclosures in the financial statements; if the disclosuresare inadequate, we should issue a modified audit opinion. Our conclusion is based on informationavailable as of the date of the audit report. However, future events or circumstances may causethe Group to be unable to continue as a going concern.
(5) Evaluate the overall presentation, structure, and content of the financial statements andassess whether the financial statements reflect the transactions and events relevant to them fairly.
(6) Obtain sufficient and appropriate audit evidence regarding the financial information ofentities or business activities within the CSG Holding Co., Ltd. in order to issue an audit opinion.We are responsible for directing, supervising, and executing the group audit, and we bear fullresponsibility for the audit opinion.
We communicate with governance regarding matters such as the planned scope of the audit,timing of the audit, and significant audit findings, including significant internal control
deficiencies identified during the audit.We also provide a statement to governance regarding compliance with professional ethicalrequirements related to independence and communicate with governance all relationships andother matters that may be reasonably considered to affect our independence, as well as thesafeguards implemented in relation to these matters.From the matters communicated with governance, we determine which matters are of mostsignificance in our audit of the financial statements for the current period and thus constitute keyaudit matters. We describe these matters in the audit report, unless prohibited by laws andregulations from publicly disclosing them, or in very rare cases, if it is reasonably expected thatcommunicating a matter in the audit report would cause negative consequences outweighing thebenefits in the public interest.
| Grant Thornton Zhitong Certified Public Accountants LLP Beijing China | Certified Public Accountant of China (Engagement Partner) Certified Public Accountant of China April 24 , 2024 | |
Financial Statement NotesI. Basic information of the companyCSG HOLDING CO., LTD. (hereinafter referred to as the "Group"), formerly known as CSG CO., LTD. isinvested by China Merchants Steam Navigation Company,Ltd, Shenzhen Building Materials Industry(Group) Company,China North Industries Shenzhen Corp.and Guangdong International Trust&Investment Co., Ltd.which is a Chinese-foreign joint venture and established in September 1984.TheGroup is registered and headquartered in Shenzhen,Guangdong Province, the People's Republic ofChina.The Group publicly issued RMB ordinary shares ("A shares") and foreign shares ("B shares") to thepublic in October 1991 and January 1992 respectively, and listed them on the Shenzhen Stock Exchange("Shenzhen Stock Exchange") in February 1992. "") listed for trading. As of 31 December, 2023, the totalshare capital of the Group was 3,070,692,107 yuan, with a par value of 1 yuan per share.The main business of the Group and its subsidiaries (hereinafter collectively referred to as the "Group")are production and sales of float glass, photovoltaic glass, special glass, engineering glass, energy-savingand glass-based energy products, and production of polysilicon and solar modules. and sales, productionand sales of electronic glass and display device, and construction and operation of photovoltaic powerplants, etc.These financial statements and notes to the financial statements were approved for issuance by theGroup's Board of Directors on 24 April, 2024 .Please refer to the notes for details of the main subsidiaries included in the scope of consolidation thisyear.II. Basics of Preparation of Financial StatementsThese financial statements are prepared in accordance with the Accounting Standards for BusinessEnterprises and their application guidelines, interpretations and other relevant regulations issued by theMinistry of Finance (collectively: " Accounting Standards for Business Enterprises " ). In addition, theGroup also discloses relevant financial information in accordance with the China Securities RegulatoryCommission's "Information Disclosure and Preparation Rules for Companies that Offer Securities to thePublic No. 15 - General Provisions on Financial Reports ( Revised in 2023 ) ".Management has a reasonable expectation that the Group has and will have adequate resources tocontinue in operational existence for the foreseeable future.The Group's accounting is based on the accrual basis. Except for certain financial instruments andinvestment properties, these financial statements are measured on a historical cost basis. If an asset isimpaired, corresponding impairment provisions will be made in accordance with relevant regulations.
III. Significant Accounting Policies and Accounting EstimatesThe depreciation of fixed assets, amortization of intangible assets, capitalization conditions for R&Dexpenses and revenue recognition policies based on its own production and operation characteristics.For specific accounting policies, please refer to Note .
1、Statement on compliance with corporate accounting standards
This financial statement complies with the requirements of the Accounting Standards for BusinessEnterprises and truly and completely reflects the Group 's consolidated and company financial status asof December 31 , 2023 , as well as the consolidated and company operating results, consolidated andcompany cash flows and other relevant information in 2023 .
2、Accounting period
The Group adopts the Gregorian calendar year, that is, from January 1 to December 31 each year.
3、Business cycle
The Group's operating cycle is 12 months.
4、Reporting currency
The Group and its domestic subsidiaries use RMB as their functional currency for accounting. The Group'soverseas subsidiaries determine their recording currency based on the currency of the main economicenvironment in which they operate. The currency used by the Group in preparing these financialstatements is RMB.
5、Materiality criteria determination method and selection basis
| Item | Materiality criterion |
| Significant single provision for bad debts in accounts receivable | The amount of individual accounts receivable provision accounts for over 5% of the combined accounts receivable balance |
| Significant single provision for bad debts in other receivables | The amount of individual other receivables provision accounts for over 10% of the combined other receivables balance |
| Significant write-off of accounts receivable/other receivables | The impact on the company's current profit and loss accounts for over 5% of the net profit absolute value for the most recent audited fiscal year, and exceeds 1 million yuan in absolute amount |
| Significant construction in progress | The budgeted investment amount accounts for over 5% of the recent audited attributable equity to the parent company |
| Significant non-wholly owned subsidiaries | The subsidiary's total assets account for over 5% of the consolidated total assets |
6、Accounting treatment methods for business combinations under the same control and those not underthe same control
（1）Business combination under common control
For business mergers under common control, the assets and liabilities of the merged party acquired bythe merging party during the merger shall be measured based on the book value of the merged party inthe consolidated financial statements of the ultimate controlling party on the merger date. The differencebetween the book value of the merger consideration (or the total face value of the shares issued) and thebook value of the net assets obtained in the merger is adjusted to the capital reserve (share premium). Ifthe capital reserve (share premium) is insufficient to offset it, the retained earnings are adjusted.The merger of enterprises under the same control is realized step by step through multiple transactions.The assets and liabilities of the merged party acquired by the merging party in the merger shall bemeasured based on the book value in the consolidated financial statements of the ultimate controllingparty on the date of merger; the book value of the investments held before the merger plus the book valueof the newly paid consideration on the date of merger The difference between the sum and the book valueof the net assets obtained in the merger shall be adjusted to the capital reserve (equity premium) . If thecapital reserve is insufficient for offset, the retained earnings shall be adjusted. The long-term equityinvestment held by the merging party before it obtained control of the merged party has been confirmedto be relevant between the date of acquiring the original equity and the date when the merging party andthe merged party are under the final control of the same party, whichever is later, to the date of merger.Changes in profits and losses, other comprehensive income and other owners' equity should be offsetagainst the opening retained earnings or current profits and losses during the comparative statementperiod respectively.
（2）Business combination not under common control
For business combinations not under common control, the combination cost shall be the assets paid,liabilities incurred or assumed, and the fair value of equity securities issued to obtain control of thepurchased party on the acquisition date. On the purchase date, the acquired assets, liabilities andcontingent liabilities of the purchased party are recognized at fair value.If the merger cost is greater than the fair value share of the acquiree's identifiable net assets obtained inthe merger,The difference is recognized as goodwill, and is subsequently measured at cost lessaccumulated impairment reserves; if the merger cost is less than the acquiree's identifiable net assetsacquired in the merger, the difference is recognized as goodwill. The difference between the fair value ofthe net assets will be included in the current profit and loss after review.The merger of enterprises not under common control is realized step by step through multiple transactions.The merger cost is the sum of the consideration paid on the purchase date and the fair value of thepurchased party's equity held before the purchase date on the purchase date. For the equity of thepurchased party that has been held before the purchase date, it will be remeasured according to the fairvalue of the equity on the purchase date, and the difference between the fair value and its book value willbe included in the investment income of the current period; The purchaser's equity held before the
purchase date involves other comprehensive income, changes in other owners' equity are converted intocurrent income on the purchase date, other comprehensive income arising from the investee'sremeasurement of the net liabilities or changes in net assets of the defined benefit plan, and othercomprehensive income originally designated as fair value Except for other comprehensive income relatedto investments in non-trading equity instruments that are measured and whose changes are included inother comprehensive income.
（3）Handling of Transaction Costs in Business Combinations
Intermediary fees such as auditing, legal services, evaluation and consulting, and other relatedmanagement fees incurred for business mergers are included in the current profit and loss when incurred.The transaction costs of equity securities or debt securities issued as consideration for the merger shallbe included in the initial recognition amount of the equity securities or debt securities.
7、Judgment standards for control and methods for preparing consolidated financial statements
（1）Control criteria
The scope of consolidation in consolidated financial statements is determined based on control. Controlmeans that the Group has power over the invested unit, enjoys variable returns by participating in therelevant activities of the invested unit, and has the ability to use its power over the invested unit to affectits return amount. The Group will reassess when changes in relevant facts and circumstances lead tochanges in the relevant elements involved in the definition of control.When judging whether to include structured entities into the scope of consolidation, the Groupcomprehensively considers all facts and circumstances, including assessing the purpose and design ofthe structured entities, identifying the types of variable returns, and whether it bears part or all of thereturns by participating in its related activities. Evaluate whether the structured entity is controlled basedon variability, etc.
（2）How to prepare consolidated financial statements
The consolidated financial statements are based on the financial statements of the Group and itssubsidiaries, and are prepared by the Group based on other relevant information. When preparingconsolidated financial statements, the accounting policies and accounting period requirements of theGroup and its subsidiaries are consistent, and significant inter-company transactions and balances areoffset.Subsidiaries and businesses that are added due to business combinations under the same control duringthe reporting period are deemed to be included in the scope of consolidation of the Group from the datethey are both controlled by the ultimate controlling party. The operating results and cash flows from thedate of the announcement are included in the consolidated income statement and consolidated cash flowstatement respectively.For subsidiaries and businesses that are added due to business combinations not under common controlduring the reporting period, the income, expenses, and profits of the subsidiaries and businesses from
the date of acquisition to the end of the reporting period are included in the consolidated income statement,and their cash flows are included in the consolidated cash flow statement.The part of the subsidiary's shareholders' equity that is not owned by the Group is listed separately asminority shareholders' equity in the consolidated balance sheet under shareholders' equity; the share ofthe subsidiary's current net profit and loss that is minority shareholders' equity is listed in the consolidatedincome statement. The net profit item is listed under the item "Profits and losses of minority shareholders" .If the losses of a subsidiary shared by minority shareholders exceed the minority shareholders' share ofthe opening owner's equity of the subsidiary, the balance will still offset the minority shareholders' equity.
（3）Purchase of minority shareholders' equity in subsidiaries
The difference between the newly acquired long-term equity investment cost due to the purchase ofminority shares and the share of the subsidiary's net assets calculated continuously from the date ofpurchase or merger based on the new shareholding ratio, and without losing control The differencebetween the disposal price obtained from the partial disposal of the equity investment in the subsidiaryand the corresponding share of the subsidiary's net assets calculated continuously from the date ofpurchase or merger date corresponding to the disposal of the long-term equity investment shall beadjusted in the consolidated balance sheet. Capital reserve (equity premium/capital premium), if thecapital reserve is insufficient to offset, the retained earnings will be adjusted.
（4）Treatment of Loss of Control of Subsidiaries
If the control over the original subsidiary is lost due to the disposal of part of the equity investment or otherreasons, the remaining equity shall be remeasured according to its fair value on the date of loss of control;the sum of the consideration obtained from the disposal of the equity and the fair value of the remainingequity shall be less Calculated based on the original shareholding ratio, the sum of the share of the bookvalue of the net assets and goodwill of the original subsidiary calculated continuously from the date ofpurchase shall be included in the investment income in the current period when control is lost.Other comprehensive income related to the equity investment of the original subsidiary should beaccounted for on the same basis as the original subsidiary's direct disposal of relevant assets or liabilitieswhen the control is lost. Any income related to the original subsidiary that involves accounting under theequity method other changes in owners' equity should be transferred to the current profits and losseswhen control is lost.
8、Determination criteria for cash and cash equivalents
Cash refers to cash on hand and deposits that can be used for payment at any time. Cash equivalentsrefer to investments held by the Group that are short-term, highly liquid, easily convertible into knownamounts of cash, and have little risk of value changes.
9、Foreign currency business and foreign currency statement conversion
（1）Foreign currency business
The Group's foreign currency business is converted into the recording currency amount based on the spotexchange rate on the date of the transaction.On the balance sheet date, foreign currency monetary items are converted using the spot exchange rateon the balance sheet date. The exchange difference arising from the difference between the spotexchange rate on the balance sheet date and the spot exchange rate at the time of initial recognition orthe previous balance sheet date is included in the current profit and loss; for foreign currency non-monetary items measured at historical cost, the spot exchange rate on the date of the transaction is stillused The foreign currency non-monetary items measured at fair value shall be converted at the spotexchange rate on the date when the fair value is determined. The difference between the convertedaccounting functional currency amount and the original accounting functional currency amount shall beconverted according to the non-monetary accounting currency amount. The nature of monetary items isincluded in current profits and losses or other comprehensive income.
（2）Translation of foreign currency financial statements
On the balance sheet date, when converting the foreign currency financial statements of overseassubsidiaries, the asset and liability items in the balance sheet are translated using the spot exchange rateon the balance sheet date. Except for "undistributed profits", shareholders' equity items include otheritems. Converted using the spot exchange rate on the date of occurrence.Income and expense items in the income statement are translated using the spot exchange rate on thedate of transaction.All items in the cash flow statement are translated according to the spot exchange rate on the date whenthe cash flow occurs. The impact of exchange rate changes on cash is regarded as an adjustment itemand is reflected in the "Impact of exchange rate changes on cash and cash equivalents" separately in thecash flow statement.Differences arising from the translation of financial statements are reflected in the "other comprehensiveincome" item under the shareholders' equity item in the balance sheet.When an overseas operation is disposed of and control is lost, the translation difference of the foreigncurrency statements listed under the shareholders' equity item in the balance sheet and related to theoverseas operation shall be transferred to the current profit and loss of the disposal in full or in proportionto the disposal of the overseas operation.10、Financial toolA financial instrument is a contract that forms a financial asset of one party and a financial liability or equityinstrument of another party.
（1）Recognition and derecognition of financial instruments
The Group recognizes a financial asset or financial liability when it becomes a party to a financialinstrument contract.Financial assets shall be derecognized if they meet one of the following conditions:
①The contractual right to receive cash flows from the financial asset terminates;
②The financial asset has been transferred and meets the following conditions for derecognition offinancial asset transfer.If the current obligation of a financial liability has been discharged in whole or in part, the financial liabilityor part of it shall be derecognised. If the Group (debtor) signs an agreement with its creditors to replaceexisting financial liabilities by assuming new financial liabilities, and the contract terms of the new financialliabilities are substantially different from the existing financial liabilities, the existing financial liabilities willbe derecognized and the new financial liabilities will be recognized at the same time.When financial assets are bought and sold in a regular manner, accounting recognition and derecognitionwill be carried out based on the transaction date.
（2）Classification and measurement of financial assets
Upon initial recognition, the Group classifies financial assets into the following three categories based onthe business model of managing financial assets and the contractual cash flow characteristics of financialassets: financial assets measured at amortized cost, financial assets measured at fair value through othercomprehensive income and financial assets measured at fair value through profits and losses.Financial assets are measured at fair value upon initial recognition. For financial assets measured at fairvalue through profit and loss, the relevant transaction costs are directly included in the current profit andloss; for other types of financial assets, the relevant transaction costs are included in the initial recognitionamount. For receivables arising from the sale of products or provision of services that do not include ortake into account significant financing components, the amount of consideration that the Group isexpected to be entitled to receive shall be deemed as the initial recognition amount.Financial assets measured at amortized costThe Group classifies financial assets that meet the following conditions and are not designated asmeasured at fair value through profit or loss as financial assets measured at amortized cost:
? The Group's business model for managing this financial asset is aimed at collecting contractualcash flows;? The contractual terms of the financial asset provide that the cash flows generated on a specificdate are solely payments of principal and interest based on the outstanding principal amount.After initial recognition, such financial assets are measured at amortized cost using the effective interestrate method. Gains or losses arising from financial assets that are measured at amortized cost and are
not part of any hedging relationship are included in the current profit and loss when they are derecognized,amortized according to the effective interest method, or impairment is recognized.Financial assets measured at fair value through other comprehensive incomeThe Group classifies financial assets that meet the following conditions and are not designated asmeasured at fair value through profit or loss as financial assets at fair value through other comprehensiveincome:
? The Group's business model for managing the financial assets aims at both collecting contractualcash flows and selling the financial assets;? The contractual terms of the financial asset provide that the cash flows generated on a specificdate are solely payments of principal and interest based on the outstanding principal amount.After initial recognition, such financial assets are subsequently measured at fair value. Interest,impairment losses or gains and exchange gains and losses calculated using the effective interest ratemethod are included in the current profit and loss, and other gains or losses are included in othercomprehensive income. When derecognition is terminated, the accumulated gains or losses previouslyincluded in other comprehensive income will be transferred out of other comprehensive income andincluded in the current profit and loss.Financial assets measured at fair value through profits and lossesExcept for the above-mentioned financial assets measured at amortized cost and at fair value throughother comprehensive income, the Group classifies all remaining financial assets as financial assets at fairvalue through profit or loss. At the time of initial recognition, in order to eliminate or significantly reduceaccounting mismatches, the Group irrevocably designated some financial assets that should have beenmeasured at amortized cost or at fair value through other comprehensive income as financial assetsmeasured through profits and losses.After initial recognition, such financial assets are subsequently measured at fair value, and the resultinggains or losses (including interest and dividend income) are included in the current profits and losses,unless the financial assets are part of a hedging relationship.The business model for managing financial assets refers to how the Group manages financial assets togenerate cash flow. The business model determines whether the source of cash flow from the financialassets managed by the Group is collection of contractual cash flow, sale of financial assets or both. TheGroup determines the business model for managing financial assets based on objective facts and specificbusiness objectives for managing financial assets determined by key management personnel.The Group evaluates the contractual cash flow characteristics of financial assets to determine whetherthe contractual cash flows generated by the relevant financial assets on a specific date are only paymentsof principal and interest based on the outstanding principal amount. Among them, principal refers to thefair value of the financial asset at the time of initial recognition; interest includes consideration for the timevalue of money, the credit risk associated with the outstanding principal amount in a specific period, andother basic lending risks, costs and profits. In addition, the Group evaluates contract terms that may causechanges in the time distribution or amount of contractual cash flows of financial assets to determinewhether they meet the requirements of the above contractual cash flow characteristics.
Only when the Group changes its business model for managing financial assets, all affected relevantfinancial assets will be reclassified on the first day of the first reporting period after the change in businessmodel. Otherwise, financial assets shall not be reclassified after initial recognition. .Financial assets are measured at fair value upon initial recognition. For financial assets measured at fairvalue through profit and loss, the relevant transaction costs are directly included in the current profit andloss; for other types of financial assets, the relevant transaction costs are included in the initial recognitionamount. For accounts receivable arising from the sale of products or provision of services that do notinclude or take into account significant financing components, the amount of consideration that the Groupis expected to be entitled to receive shall be deemed as the initial recognition amount.
（3）Classification and measurement of financial liabilities
The Group's financial liabilities are classified upon initial recognition into: financial liabilities measured atfair value through profit or loss, and financial liabilities measured at amortized cost. For financial liabilitiesthat are not classified as measured at fair value through profit and loss, relevant transaction costs areincluded in their initial recognition amount.Financial liabilities measured at fair value through profit or lossFinancial liabilities at fair value through profit or loss include trading financial liabilities and financialliabilities designated as fair value through profit or loss upon initial recognition. Such financial liabilitiesare subsequently measured at fair value, and gains or losses arising from changes in fair value, as wellas dividends and interest expenses related to such financial liabilities, are included in the current profitsand losses.Financial liabilities measured at amortized costOther financial liabilities adopt the actual interest rate method and are subsequently measured atamortized cost. Gains or losses arising from derecognition or amortization are included in the currentprofits and losses.The difference between financial liabilities and equity instrumentsFinancial liabilities refer to liabilities that meet one of the following conditions:
①Contractual obligation to deliver cash or other financial assets to other parties.
②Contractual obligations to exchange financial assets or financial liabilities with other parties underpotentially adverse conditions.
③Non-derivative contracts that must or can be settled with the enterprise's own equity instruments in thefuture, and the enterprise will deliver a variable number of its own equity instruments according to thecontract.
④Derivative contracts that must or can be settled with the enterprise's own equity instruments in thefuture, except for derivative contracts that exchange a fixed number of its own equity instruments for afixed amount of cash or other financial assets.
Equity instruments refer to contracts that prove ownership of the remaining equity in the assets of anenterprise after deducting all liabilities.If the Group cannot unconditionally avoid delivering cash or other financial assets to fulfill a contractualobligation, the contractual obligation meets the definition of a financial liability.If a financial instrument must be settled or can be settled with the Group's own equity instruments, it isnecessary to consider whether the Group's own equity instruments used to settle the instrument are usedas a substitute for cash or other financial assets, or to enable the holders of the instrument to Theremaining interest in the issuer's assets after deducting all liabilities. If it is the former, the instrument is afinancial liability of the Group; if it is the latter, the instrument is an equity instrument of the Group.
（4）Fair value of financial instruments
Note for the method of determining the fair value of financial assets and financial liabilities.
（5）Impairment of financial assets
Based on expected credit losses, the Group performs impairment accounting on the following items andrecognizes loss provisions:
? Financial assets measured at amortized cost;? Receivables and debt investments measured at fair value through other comprehensive income ;? Contract assets as defined in "Accounting Standards for Business Enterprises No. 14 - Revenue ";? Lease receivables;? Financial guarantee contracts (except those that are measured at fair value and whose changesare included in current profits and losses, the transfer of financial assets does not meet the conditionsfor derecognition, or the financial assets continue to be involved in the transferred financial assets).Measurement of expected credit lossesExpected credit losses refer to the weighted average of the credit losses of financial instruments with therisk of default as the weight. Credit loss refers to the difference between all contractual cash flowsreceivable under the contract and all cash flows expected to be received by the Group discounted at theoriginal effective interest rate, that is, the present value of all cash shortfalls.The Group considers reasonable and well-founded information about past events, current conditions, andpredictions of future economic conditions, and weights the risk of default to calculate the differencebetween the cash flows receivable under the contract and the cash flows expected to be received. Theprobability-weighted amount of the present value is recognized as the expected credit loss.The Group measures the expected credit losses of financial instruments at different stages respectively.If the credit risk of a financial instrument has not increased significantly since initial recognition, it is in thefirst stage, and the Group will measure loss provisions based on the expected credit losses in the next 12
months; if the credit risk of a financial instrument has increased significantly since initial recognition buthas not yet occurred If the financial instrument is credit-impaired, it is in the second stage, and the Groupmeasures the loss provision based on the expected credit losses for the entire duration of the instrument;if the financial instrument has been credit-impaired since initial recognition, it is in the third stage, and theGroup measures the expected credit losses for the entire duration of the instrument. The expected creditlosses during the duration are measured as loss provisions.For financial instruments with low credit risk on the balance sheet date, the Group assumes that its creditrisk has not increased significantly since initial recognition and measures loss provisions based onexpected credit losses within the next 12 months.Lifetime expected credit losses refer to the expected credit losses caused by all possible default eventsthat may occur during the entire expected life of a financial instrument. Expected credit losses in the next12 months refer to the default events of financial instruments that may occur within 12 months after thebalance sheet date (if the expected duration of the financial instrument is less than 12 months, theexpected duration) Expected credit losses are part of the expected credit losses throughout the entireduration.When measuring expected credit losses, the maximum period that the Group needs to consider is thelongest contract period for which the enterprise faces credit risk (including consideration of renewaloptions).For financial instruments in the first and second stages and with lower credit risk, the Group calculatesinterest income based on its Carrying Amount before impairment provisions and actual interest rate. Forfinancial instruments in the third stage, interest income is calculated based on its Carrying Amount minusthe amortized cost and actual interest rate after impairment provisions have been made.For receivables such as notes receivable, accounts receivable, receivable financing, other receivables,and contract assets, if the credit risk characteristics of a certain customer are significantly different fromother customers in the portfolio, or the credit risk of the customer If the characteristics of the receivableschange significantly, the Group shall make a separate provision for bad debts for the receivables. Inaddition to the receivables for which bad debt provisions are made individually, the Group divides thereceivables into groups based on credit risk characteristics and calculates bad debt provisions on a groupbasis.Notes receivable, accounts receivable and contract assetsFor notes receivable and accounts receivable, regardless of whether there is a significant financingcomponent, the Group always measures its loss provisions at an amount equivalent to the expected creditlosses during the entire duration.When the information on expected credit losses cannot be assessed at a reasonable cost for a singlefinancial asset, the Group divides notes receivable and accounts receivable into groups based on creditrisk characteristics, and calculates expected credit losses on the basis of the groups. The basis fordetermining the group is as follows:
A. Notes receivable? Notes Receivable Portfolio 1: Bank Acceptance Bill
? Notes Receivable Portfolio 2: Commercial Acceptance BillB. Accounts receivable? Accounts receivable portfolio 1: Non-related party customers? Accounts Receivable Portfolio 2: Related Party CustomersFor notes receivable and contract assets divided into portfolios, the Group refers to historical credit lossexperience, combined with current conditions and predictions of future economic conditions, andcalculates expected credit losses through default risk exposure and the expected credit loss ratethroughout the duration.For accounts receivable divided into portfolios, the Group refers to historical credit loss experience,combined with current conditions and predictions of future economic conditions, to prepare a comparisontable between the aging/overdue days of accounts receivable and the expected credit loss rate for theentire duration. Calculate expected credit losses. The aging of accounts receivable is calculated from thedate of confirmation / the number of overdue days is calculated from the date of expiration of the creditperiod.Other receivablesThe Group divides other receivables into several combinations based on credit risk characteristics, andcalculates expected credit losses on the basis of the combinations. The basis for determining thecombinations is as follows:
? Other receivables portfolio 1: Amounts due from non-related parties? Other receivables portfolio 2: Amounts due from related partiesFor other receivables classified into portfolios, the Group calculates expected credit losses through thedefault risk exposure and the expected credit loss rate within the next 12 months or throughout theduration. For other receivables grouped by aging, the aging is calculated from the date of confirmation.Debt investment, other debt investmentFor debt investments and other debt investments, the Group calculates expected credit based on thenature of the investment and various types of counterparties and risk exposures through default riskexposure and expected credit loss rate within the next 12 months or throughout the duration.Assessment of significant increase in credit riskThe Group compares the risk of default of a financial instrument on the balance sheet date with the riskof default on the initial recognition date to determine the relative change in the default risk of the financialinstrument during its expected duration to assess whether the credit risk of the financial instrument hasincreased significantly since its initial recognition.When determining whether the credit risk has increased significantly since initial recognition, the Groupconsiders reasonable and supportable information, including forward-looking information,that can beobtained without unnecessary additional cost or effort. Information considered by the Group includes:
? The debtor fails to pay the principal and interest on the due date of the contract;? an actual or expected significant deterioration in the external or internal credit rating (if any) of thefinancial instrument;? The actual or expected serious deterioration in the debtor’s operating results;? Existing or expected changes in the technological, market, economic or legal environment will havea significant adverse impact on the debtor's ability to repay the Group's debt.Depending on the nature of the financial instrument, the Group assesses whether there is a significantincrease in credit risk on the basis of a single financial instrument or a combination of financial instruments.When evaluating based on a portfolio of financial instruments, the Group can classify financial instrumentsbased on common credit risk characteristics, such as overdue information and credit risk ratings.If it is overdue for more than 30 days, the Group determines that the credit risk of the financial instrumenthas increased significantly.The Group believes that financial assets default in the following circumstances:
? It is unlikely that the borrower will pay in full what it owes the Group, an assessment that does nottake into account recourse actions by the Group such as the realization of collateral (if held);? Financial assets are overdue for more than 90 days.Credit-impaired financial assetsThe Group assesses whether credit impairment has occurred on financial assets measured at amortizedcost and debt investments measured at fair value through other comprehensive income on the balancesheet date. When one or more events occur that have an adverse impact on the expected future cashflows of a financial asset, the financial asset becomes a credit-impaired financial asset. Evidence that afinancial asset has been credit-impaired includes the following observable information:
? The issuer or debtor encounters significant financial difficulties;? The debtor breaches the contract, such as default or overdue payment of interest or principal;? The Group grants the debtor concessions that it would not have made under any othercircumstances due to economic or contractual considerations related to the debtor's financial difficulties;? the likelihood that the debtor will go bankrupt or undergo other financial reorganization;? Financial difficulties of the issuer or debtor result in the disappearance of an active market for thefinancial asset.Presentation of expected credit loss provisionsIn order to reflect changes in the credit risk of financial instruments since initial recognition, the Group re-measures expected credit losses on each balance sheet date, and the resulting increase or reversal ofloss provisions shall be accounted for as impairment losses or gains into current profit and loss. For
financial assets measured at amortized cost, the loss provision is reduced by the book value of thefinancial assets listed in the balance sheet; for debt investments measured at fair value through othercomprehensive income, the Group's other comprehensive income The loss provision is recognized inincome and does not deduct the book value of the financial asset.Write offIf the Group no longer reasonably expects that the contractual cash flows of a financial asset can be fullyor partially recovered, it will directly write down the Carrying Amount of the financial asset. Such a write-down constitutes the derecognition of the relevant financial asset. This situation usually occurs when theGroup determines that the debtor does not have the assets or sources of income to generate sufficientcash flow to repay the amount that will be written down. However, in accordance with the Group'sprocedures for recovering due amounts, financial assets that are written down may still be affected byexecution activities.If a financial asset that has been written down is later recovered, the reversal of the impairment loss willbe included in the profit and loss of the current period of recovery.
（6）Financial asset transfer
The transfer of financial assets refers to the transfer or delivery of financial assets to another party (thetransfer-in party) other than the issuer of the financial assets.If the Group has transferred substantially all risks and rewards of ownership of a financial asset to thetransferee, the financial asset shall be derecognised; if the Group has retained substantially all risks andrewards of ownership of the financial asset, the financial asset shall not be derecognised.If the Group neither transfers nor retains substantially all the risks and rewards of ownership of a financialasset, it shall handle the following situations respectively: if it gives up control of the financial asset, thefinancial asset shall be derecognised and the assets and liabilities incurred shall be recognized; if it hasnot given up control of the financial asset, If the financial asset is controlled, the relevant financial assetsshall be recognized to the extent of its continued involvement in the transferred financial assets, and therelevant liabilities shall be recognized accordingly.
（7）Offset of financial assets and financial liabilities
When the Group has the legal right to offset the recognized financial assets and financial liabilities and iscurrently able to enforce such legal rights, and the Group plans to settle on a net basis or to realize thefinancial assets and pay off the financial liabilities at the same time, the financial assets and financialliabilities will be Financial liabilities are presented in the balance sheet at the amount after offsetting eachother. Otherwise, financial assets and financial liabilities are presented separately in the balance sheetand are not offset against each other.
11、Fair value measurement
Fair value refers to the price that can be received to sell an asset or paid to transfer a liability in an orderlytransaction between market participants on the measurement date.
The Group measures relevant assets or liabilities at fair value, assuming that an orderly transaction tosell assets or transfer liabilities is conducted in the main market for the relevant assets or liabilities; if thereis no main market, the Group assumes that the transaction is in the most advantageous market for therelevant assets or liabilities. The market proceeds. The main market (or the most advantageous market)is the trading market that the Group can enter on the measurement date. The Group adopts theassumptions used by market participants to maximize their economic interests when pricing the asset orliability.For financial assets or financial liabilities that have an active market, the Group determines their fair valueusing quoted prices in the active market. If there is no active market for a financial instrument, the Groupuses valuation techniques to determine its fair value.When measuring non-financial assets at fair value, the ability of market participants to use the asset forits best purpose to generate economic benefits is considered, or the ability to sell the asset to other marketparticipants that can be used for its best purpose to generate economic benefits.The Group adopts valuation techniques that are applicable under the current circumstances andsupported by sufficient available data and other information. It gives priority to the use of relevantobservable input values and unobservable input values only uses when the observable input valuescannot be obtained or are impractical to obtain..For assets and liabilities measured or disclosed at fair value in financial statements, the fair value level towhich they belong is determined based on the lowest level input value that is significant to the overall fairvalue measurement: the first level input value is the value that can be measured on the measurementdate. The unadjusted quoted price of the same asset or liability obtained in the active market; the secondlevel input value is the directly or indirectly observable input value of the relevant assets or liabilities inaddition to the first level input value; the third level input value is Unobservable inputs to related assets orliabilities.At each balance sheet date, the Group reassesses the assets and liabilities recognized in the financialstatements that continue to be measured at fair value to determine whether there is a transition betweenfair value measurement levels.
12、Inventories
（1）Inventory classification
The Group's inventories are divided into raw materials, work in progress, inventory goods and turnovermaterials.
（2）Valuation method for issued inventory
The Group's inventories are valued at actual cost when acquired. Raw materials, inventory, etc. are pricedusing the weighted average method when shipped.
（3）Methods of Provision for inventories
On the balance sheet date, inventories are measured at the lower of cost and net realizable value. Whenthe net realizable value is lower than the cost, a provision for inventory depreciation is made.Net realizable value is the estimated selling price of the inventory minus the estimated costs to be incurredupon completion, estimated selling expenses and related taxes. When determining the net realizablevalue of inventories, it is based on the conclusive evidence obtained and the purpose of holding theinventories and the impact of events after the balance sheet date are also considered.The Group usually accrues inventory depreciation provisions based on individual inventory items. Forinventories with large quantities and low unit prices, inventory depreciation provisions are made accordingto the inventory category.On the balance sheet date, if the factors that previously caused the inventory value to be written downhave disappeared, the inventory depreciation provision shall be reversed within the amount originallyaccrued.
（4）Inventory system
The Group adopts the perpetual inventory system.
13、Long-term investment
Long-term equity investments include equity investments in subsidiaries, joint ventures and associates.The associates of the Group are those that the Group can exert significant influence on the invested units.
（1）Initial measurement of investment cost
Long-term equity investments resulting from business combinations: For long-term equity investmentsobtained from business combinations under common control, the share of the book value of the owner'sequity of the merged party in the consolidated financial statements of the ultimate controlling party will beused as the investment cost on the date of merger ; not under the same control For long-term equityinvestments obtained through a business merger, the investment cost of the long-term equity investmentshall be based on the merger cost.For long-term equity investments obtained by other means: for long-term equity investments obtained bypaying cash, the actual purchase price paid will be used as the initial investment cost; for long-term equityinvestments obtained by issuing equity securities, the fair value of the equity securities issued will be usedas the initial investment cost.
（2）Subsequent measurement and profit and loss recognition methods
Investments in subsidiaries are accounted for using the cost method, unless the investment qualifies asheld for sale; investments in associates and joint ventures are accounted for using the equity method.
For long-term equity investments accounted for using the cost method, in addition to the actual price paidwhen acquiring the investment or the cash dividends or profits that have been declared but not yetdistributed included in the consideration, the cash dividends or profits declared to be distributed by theinvestee shall be recognized as investment income for current profit and loss.For long-term equity investments accounted for using the equity method, if the initial investment cost isgreater than the fair value share of the investee’s identifiable net assets that should be enjoyed at thetime of investment, the investment cost of the long-term equity investment will not be adjusted; if the initialinvestment cost is less than the investment, the investee’s share of the identifiable net assets should beenjoyed If the fair value share of net assets is identified, the book value of the long-term equity investmentwill be adjusted, and the difference will be included in the current profit and loss of the investment.When accounting using the equity method, investment income and other comprehensive income arerecognized respectively according to the share of the net profit or loss and other comprehensive incomerealized by the investee that should be enjoyed or shared, and the book value of the long-term equityinvestment is adjusted at the same time; in accordance with the declaration of the investee The portionof the distributed profits or cash dividends that should be calculated will reduce the book value of the long-term equity investment accordingly; for other changes in the owner's equity of the investee other than netprofit and loss, other comprehensive income and profit distribution, the book value of the long-term equityinvestment will be adjusted and Included in capital reserves (other capital reserves). When confirming theshare of the investee's net profits and losses, the fair value of the investee's identifiable assets when theinvestment is obtained is used as the basis, and in accordance with the Group's accounting policies andaccounting periods, the net profit of the investee is determined. Make adjustments and confirm.If it is possible to exert significant influence on the investee or implement joint control but does notconstitute control due to additional investment or other reasons, on the conversion date, the sum of thefair value of the original equity plus the cost of the new investment will be used as the initial investmentcost to be accounted for by the equity method. If the original equity is classified as a non-trading equityinstrument investment measured at fair value and its changes are included in other comprehensiveincome, the related cumulative fair value changes originally included in other comprehensive income willbe transferred to retained earnings when it is accounted for under the equity method. .If the joint control or significant influence on the invested unit is lost due to the disposal of part of theequity investment or other reasons, the remaining equity after the disposal shall be changed to the"Accounting Standards for Business Enterprises No. 22 - Financial Instrument Recognition and SignificantInfluence" on the date of loss of joint control or significant influence. Measurement" is used for accountingtreatment, and the difference between the fair value and the book value is included in the current profitand loss. Other comprehensive income recognized due to the use of the equity method for accounting inthe original equity investment will be accounted for on the same basis as the investee's direct disposal ofrelevant assets or liabilities when the equity method is terminated; other changes in owner's equity relatedto the original equity investment Transferred to current profit and loss.If the control over the invested unit is lost due to the disposal of part of the equity investment or otherreasons, and the remaining equity after the disposal can jointly control or exert significant influence onthe invested unit, it shall be accounted for according to the equity method, and the remaining equity shallbe regarded as owned. Adjustments will be made using the equity method upon acquisition; if theremaining equity after disposal cannot jointly control or exert significant influence on the invested unit, therelevant provisions of "Accounting Standards for Business Enterprises No. 22 - Recognition andMeasurement of Financial Instruments" will be followed. Accounting treatment, the difference between itsfair value and book value on the date of loss of control is included in the current profit and loss.
If the Group's shareholding ratio decreases due to capital increase by other investors, thereby losingcontrol but it can exercise joint control or exert significant influence on the invested unit, the Group's shareof the invested unit due to the capital increase shall be confirmed based on the new shareholding ratio.The difference between the share of net assets increased due to share expansion and the original bookvalue of the long-term equity investment corresponding to the decrease in shareholding ratio that shouldbe carried forward is included in the current profit and loss; then, the new shareholding ratio is deemedto have been calculated since the investment was obtained. That is, adjustments are made using theequity method of accounting.Unrealized gains and losses from internal transactions between the Group and its associates and jointventures are calculated based on the shareholding ratio and are attributable to the Group, and investmentgains and losses are recognized on an offsetting basis. However, if the unrealized internal transactionlosses between the Group and the investee are impairment losses on the transferred assets, they will notbe offset.
（3）Basis for determining joint control and significant influence on the invested unit
Joint control refers to the shared control over an arrangement in accordance with relevant agreements,and the relevant activities of the arrangement must be decided only with the unanimous consent of theparticipants sharing control rights. When judging whether there is joint control, first judge whether thearrangement is collectively controlled by all participants or a combination of participants, and secondlywhether decisions on activities related to the arrangement must be unanimously agreed upon by theparticipants who collectively control the arrangement. If all participants or a group of participants must actin concert to determine the relevant activities of an arrangement, all participants or a group of participantsare considered to collectively control the arrangement; if there are two or more combinations ofparticipants that can collectively Control of an arrangement does not constitute joint control. Whendetermining whether joint control exists, the protective rights enjoyed are not taken into account.Significant influence means that the investor has the power to participate in decision-making on thefinancial and operating policies of the investee, but it is not able to control or jointly control the formulationof these policies with other parties. When determining whether it can exert a significant influence on theinvestee, it is considered that the investor's direct or indirect holdings of voting shares in the investee andthe current executable potential voting rights held by the investor and other parties are assumed to beconverted into control over the investee. The impact arising from the acquisition of equity includes theimpact of current convertible warrants, share options and convertible corporate bonds issued by theinvestee.When the Group directly or indirectly through subsidiaries owns more than 20% (inclusive) but less than50% of the voting shares of the invested unit, it is generally considered to have a significant influence onthe invested unit, unless there is clear evidence that this situation It is unable to participate in theproduction and operation decisions of the invested unit and does not have a significant impact; when theGroup owns less than 20% (exclusive) of the voting shares of the invested unit, it is generally notconsidered to have a significant impact on the invested unit, unless there is clear evidence that this Undersuch circumstances, we can participate in the production and operation decisions of the invested unit andhave a significant influence.
（4）Impairment testing method and impairment provision accrual method
For investments in subsidiaries, associates and joint ventures, please refer to Note for the method ofcalculating asset impairment.
14、Investment properties
Investment property is property held to earn rentals or for capital appreciation, or both. The Group'sinvestment properties includes leased land use rights, land use rights held and prepared to be transferredafter appreciation, and leased buildings.There is an active real estate trading market in the location where the Group's investment real estate islocated, and the Group is able to obtain market prices and other relevant information of similar or similarreal estate from the real estate trading market, so that it can make a reasonable estimate of the fair valueof the investment real estate. Therefore, the Group adopts the fair value model for subsequentmeasurement of investment real estate, and changes in fair value through profit and loss.When determining the fair value of investment properties, refer to the current market price of the same orsimilar real estate in the active market; if the current market price of the same or similar real estate cannotbe obtained, refer to the latest transaction price of the same or similar real estate in the active market,and Consider the transaction situation, transaction date, location and other factors to make a reasonableestimate of the fair value of the investment property; or determine its fair value based on the expectedfuture rental income and the present value of the relevant cash flows.In rare cases, if there is evidence that the Group acquires an investment property that is not underconstruction for the first time (or an existing property becomes an investment property for the first timeafter completing construction or development activities or changing its use), the Group will If the fair valueof investment real estate cannot be obtained continuously and reliably, the investment real estate will bemeasured using the cost model until disposal, and it is assumed that there is no residual value.The difference between the disposal income from the sale, transfer, scrapping or damage of investmentproperties after deducting its book value and relevant taxes is included in the current profit and loss.
15、Fixed assets
（1）Fixed asset recognition conditions
The Group's fixed assets refer to tangible assets held for the production of goods, provision of laborservices, leasing or operation and management, and with a useful life of more than one accounting year.A fixed asset can only be recognized when the economic benefits related to the fixed asset are likely toflow into the enterprise and the cost of the fixed asset can be measured reliably.The Group's fixed assets are initially measured based on the actual cost when acquired.Subsequent expenditures related to fixed assets shall be included in the cost of fixed assets when theeconomic benefits related to them are likely to flow into the Group and their costs can be reliably measured;
daily repair costs of fixed assets that do not meet the conditions for subsequent expenditures forcapitalization of fixed assets shall be included in the cost of fixed assets when the economic benefitsrelated to them are likely to flow into the Group and their costs can be measured reliably. When incurred,it shall be included in the current profit and loss or included in the cost of related assets according to thebeneficiary object. For the replaced part, its book value is derecognized.
（2）Depreciation methods for various types of fixed assets
Fixed assets are depreciated using the straight-line method based on their costs less estimated residualvalues over their estimated useful lives Depreciation begins when a fixed asset reaches its intendedusable condition, and depreciation stops when it is derecognized or classified as a non-current asset heldfor sale. Without considering impairment provisions, the Group determines the annual depreciation ratesof various types of fixed assets based on fixed asset category, estimated service life and estimatedresidual value as follows:
| Category | Useful lives (years) | Residual rate% | Annual depreciation rate % |
| Buildings | 20-35 | 5 | 4.75-2.71 |
| Mechinery equipment | 8-20 | 5 | 11.88-4.75 |
| Transportation and Others | 5-8 | 0 | 20-12.50 |
Among them, for fixed assets for which impairment provisions have been made, the depreciation rateshould also be calculated and determined by deducting the accumulated amount of fixed assetimpairment provisions.
（3）Note for the impairment testing method and impairment provision accrual method for fixed assets.
（4）At the end of each year, the Group reviews the useful life, estimated net residual value and depreciation
method of fixed assets.If there is a difference between the estimated useful life and the original estimate, the useful life of thefixed assets will be adjusted; if there is a difference between the expected net residual value and theoriginal estimate, the estimated net residual value will be adjusted.
（5）Fixed asset disposal
When a fixed asset is disposed of or no economic benefits are expected to be generated through use ordisposal, the fixed asset is derecognised. The amount of disposal income from the sale, transfer,scrapping or damage of fixed assets after deducting their book value and relevant taxes is included in thecurrent profit and loss.
16、Construction in progress
The cost of the Group's construction-in-progress is determined based on actual project expenditures,including various necessary project expenditures incurred during the construction period, borrowing coststhat should be capitalized before the project reaches its intended usable state, and other related expenses.
Construction in progress is transferred to fixed assets when it reaches the intended usable state. Thecriteria for judging the intended usable status should meet one of the following conditions: The physicalconstruction (including installation) of the fixed assets has been completed or substantially completed,trial production or trial operation has been carried out, and the results show that the assets can operatenormally. Or it can produce stably, or the trial operation results show that it can operate normally. Theamount of expenditure on the fixed assets constructed is very small or almost no longer occurs, and thefixed assets purchased have met the design or contract requirements, or are basically consistent with thedesign or contract requirements.Note for the method of accruing asset impairment for construction in progress.
17、Engineer material
The Group's engineering materials refer to various materials prepared for projects under construction,including engineering materials, equipment that has not yet been installed, and tools and equipmentprepared for production.The purchased engineering materials are measured at cost, the engineering materials received aretransferred to the project under construction, and the remaining engineering materials after the completionof the project are transferred to inventory.Note for the asset impairment method of construction materials.In the balance sheet, the closing balance of construction materials is listed in the "Construction inProgress" item.
18、Borrowing costs
（1）Recognition principles for capitalization of borrowing costs
If the borrowing costs incurred by the Group are directly attributable to the acquisition, construction orproduction of assets that meet the capitalization conditions, they shall be capitalized and included in thecost of the relevant assets; other borrowing costs shall be recognized as expenses based on the amountincurred when incurred and shall be included in the cost of the relevant assets for current profit and loss.Borrowing costs will begin to be capitalized if they meet the following conditions at the same time:
①Asset expenditures have occurred. Asset expenditures include expenditures in the form of cashpayments, transfers of non-cash assets or interest-bearing debts for the acquisition, construction orproduction of assets that meet capitalization conditions;
②The borrowing costs have been incurred;
③The necessary purchase, construction or production activities to bring the asset to its intended usableor salable state have begun.
（2）Borrowing cost capitalization period
When the assets purchased, constructed or produced by the Group that meet the capitalization conditionsare ready for intended use or sale, the capitalization of borrowing costs will cease. Borrowing costsincurred after the assets that meet the capitalization conditions reach the intended usable or salable stateare recognized as expenses based on the amount incurred when incurred and included in the currentprofit and loss.If an asset that meets the capitalization conditions is abnormally interrupted during the acquisition,construction or production process, and the interruption lasts for more than 3 months, the capitalizationof borrowing costs will be suspended; the borrowing costs during the normal interruption period willcontinue to be capitalized.
（3）Calculation method of capitalization rate of borrowing costs and capitalization amountThe interest expenses actually incurred on special borrowings in the current period, minus the interestincome from unused borrowed funds deposited in banks or investment income from temporaryinvestments, are capitalized; general borrowings are capitalized based on the excess of the accumulatedasset expenditures over the special borrowings. The capitalization amount is determined by multiplyingthe weighted average of asset expenditures by the capitalization rate of the general borrowings occupied.The capitalization rate is calculated and determined based on the weighted average interest rate ofgeneral borrowings.During the capitalization period, all exchange differences on special foreign currency borrowings arecapitalized; exchange differences on general foreign currency borrowings are included in the currentprofits and losses.
19、Intangible assets
The Group's intangible assets include land use rights, patent rights and proprietary technologies, mineralmining rights and others.Intangible assets are initially measured based on cost, and their service life is analyzed and judged whenthe intangible assets are acquired. If the service life is limited, from the time when the intangible assetbecomes available for use, an amortization method that can reflect the expected realization method ofthe economic benefits related to the asset shall be used, and amortization will be amortized within theestimated useful life; if the expected realization method cannot be reliably determined, Amortization iscarried out using the straight-line method; intangible assets with indefinite service life are not amortized.The amortization method of intangible assets with limited useful life is as follows:
| Category | Useful lives (years) | Basis for determining service life | Amortization method | Notes |
| Land use rights | 30-70 years | Warrant | Straight-line Depreciation | |
| Patent rights and proprietary technologies | 5-20 years | Estimated useful life | Straight-line Depreciation | |
| Exploitation | 16-20 years | Warrants, expected income period | Straight-line Depreciation |
| rights | ||||
| Others | 2-10 years | Estimated useful life | Straight-line Depreciation |
At the end of each year, the Group reviews the useful life and amortization method of intangible assetswith limited service life. If it is different from the previous estimate, the original estimate is adjusted andtreated as a change in accounting estimate.If it is expected that an intangible asset will no longer bring future economic benefits to the enterprise onthe balance sheet date, the entire book value of the intangible asset will be transferred to the current profitand loss.Note for the method of impairment for intangible assets.20、R & D expenditure
The Group's R&D expenditures are expenditures directly related to the company's R&D activities,including R&D staff salaries, direct investment costs, depreciation expenses and long-term deferredexpenses, design expenses, equipment commissioning expenses, intangible asset amortizationexpenses, entrusted external research and development expenses, Other expenses etc. The wages ofR&D personnel are included in R&D expenditures based on project working hours. Equipment, productionlines, and sites shared between R&D activities and other production and operation activities are includedin R&D expenses according to the proportion of working hours and the proportion of area.The Group divides expenditures on internal research and development projects into expenditures in theresearch phase and expenditures in the development phase.Expenditures in the research stage are included in the current profits and losses when incurred.Expenditures in the development stage can only be capitalized if they meet the following conditions: it istechnically feasible to complete the intangible asset so that it can be used or sold; there is the intentionto complete the intangible asset and use or sell it; the intangible asset The way to generate economicbenefits includes being able to prove that there is a market for the products produced using the intangibleassets or that the intangible assets themselves have a market. If the intangible assets will be usedinternally, they can prove their usefulness; there are sufficient technical, financial and other resourcesupports. , in order to complete the development of the intangible asset and have the ability to use or sellthe intangible asset; the expenditures attributable to the development stage of the intangible asset canbe measured reliably. Development expenditures that do not meet the above conditions are included inthe current profit and loss.The Group's research and development projects will enter the development stage after meeting the aboveconditions and passing technical feasibility and economic feasibility studies to form a project.Capitalized expenditures in the development phase are listed as development expenditures on thebalance sheet and are converted into intangible assets from the date the project reaches its intended use.Capitalization conditions for specific R&D projects:
Expenditures in the research stage are included in the current profits and losses when incurred. Beforelarge-scale production, expenditures related to the design and testing phase of the final application of the
production process are expenditures in the development phase. If the following conditions are met at thesame time, they will be capitalized:
·The development of the production process has been fully demonstrated by the technical team;· Management has approved the budget for production process development;·The research and analysis of the preliminary market research shows that the products produced by theproduction process have market promotion capabilities;·Have sufficient technical and financial support to carry out production process development activities andsubsequent large-scale production; and the expenditure on production process development can bereliably collected. If it is impossible to distinguish between expenditures in the research stage andexpenditures in the development stage, all R&D expenditures incurred will be included in the current profitand loss.
21、Asset impairment
For subsidiaries’ long-term investments, fixed assets, construction in process, right-of-use assets,intangible assets, goodwill, etc. (excluding inventories, investment properties measured according to thefair value model, deferred tax assets, and financial assets) value, determined as follows:
On the balance sheet date, it is judged whether there are any signs of possible impairment of the assets.If there are signs of impairment, the Group will estimate its recoverable amount and conduct animpairment test. Goodwill formed due to business combinations, intangible assets with indefinite usefullives and intangible assets that have not yet reached a usable state are subject to impairment testingevery year regardless of whether there are signs of impairment.The recoverable amount is determined based on the higher of the asset's fair value less disposal costsand the present value of the asset's expected future cash flows. The Group estimates the recoverableamount on the basis of a single asset; if it is difficult to estimate the recoverable amount of an individualasset, the Group determines the recoverable amount of the asset group based on the asset group towhich the asset belongs. The identification of an asset group is based on whether the main cash inflowgenerated by the asset group is independent of the cash inflows of other assets or asset groups.When the recoverable amount of an asset or asset group is lower than its book value, the Group will writedown its book value to the recoverable amount, and the amount of the write-down will be included in thecurrent profit and loss, and the corresponding asset impairment provision will be made.As far as the impairment test of goodwill is concerned, the book value of goodwill formed due to a businesscombination shall be apportioned to the relevant asset group in a reasonable manner from the date ofpurchase; if it is difficult to apportion it to the relevant asset group, it shall be apportioned to the relevantasset group. Related asset group combinations. The relevant asset group or asset group combination isan asset group or asset group combination that can benefit from the synergy effects of the businesscombination, and is no larger than the reporting segment determined by the group.During impairment testing, if there are signs of impairment in an asset group or combination of assetgroups related to goodwill, first conduct an impairment test on the asset group or combination of assetgroups that does not include goodwill, calculate the recoverable amount, and confirm the corresponding
impairment. Then conduct an impairment test on the asset group or asset group combination containinggoodwill, and compare its book value with the recoverable amount. If the recoverable amount is lowerthan the book value, the impairment loss of goodwill is recognized.Once the asset impairment loss is recognized, it will not be reversed in subsequent accounting periods.
22、Long-term prepaid expenses
The long-term deferred expenses incurred by the Group are measured at actual cost and amortizedevenly over the expected beneficial period. For long-term deferred expense items that cannot benefitfuture accounting periods, their amortized value shall be fully included in the current profit and loss.
23、Employee compensation
（1）Range of employee compensation
Employee compensation refers to various forms of remuneration or compensation given by enterprisesto obtain services provided by employees or to terminate labor relations. Employee compensationincludes short-term compensation, post-employment benefits, termination benefits and other long-termemployee benefits. Benefits provided by an enterprise to employees’ spouses, children, dependents,survivors of deceased employees and other beneficiaries are also employee benefits.
（2）Short-term compensation
During the accounting period when employees provide services, the Group recognizes the actualemployee wages, bonuses, social insurance premiums such as medical insurance premiums, work-related injury insurance premiums, maternity insurance premiums, and housing provident funds paid foremployees based on prescribed standards and proportions as a liabilities and included in the current profitand loss or related asset costs.
（3）Post-employment benefits
Post-employment benefit plans include defined contribution plans and defined benefit plans. Among them,a defined contribution plan refers to a post-employment benefit plan in which the enterprise no longerbears further payment obligations after depositing a fixed fee into an independent fund; a defined benefitplan refers to a post-employment benefit plan other than a defined contribution plan.Defined contribution plansDefined contribution plans include basic pension insurance, unemployment insurance, etc.During the accounting period when employees provide services, the deposit amount payable calculatedaccording to the defined contribution plan is recognized as a liability and included in the current profit andloss or related asset costs.
（4）Termination benefits
If the Group provides dismissal benefits to employees, the employee compensation liabilities arising fromthe dismissal benefits will be recognized at the earliest of the following two times and included in thecurrent profit and loss: When the Group cannot unilaterally withdraw the dismissal benefits provided dueto the termination of labor relations plan or layoff proposal; When the Group recognizes costs or expensesrelated to restructuring involving payment of termination benefits.
（5）Other long-term benefits
Other long-term employee benefits provided by the Group to employees that meet the conditions of adefined contribution plan will be handled in accordance with the above-mentioned relevant regulations ondefined contribution plans. If it is in compliance with the defined benefit plan, it shall be handled inaccordance with the relevant provisions on the defined benefit plan mentioned above, but the "changescaused by the remeasurement of the net liabilities or net assets of the defined benefit plan" in the relevantemployee compensation costs shall be included in the current profit and loss or related Asset cost.
24、Provisions
If the obligations related to contingencies meet the following conditions at the same time, the Group willrecognize them as estimated liabilities:
(1) The obligation is a current obligation borne by the Group;
(2) The performance of this obligation is likely to result in the outflow of economic benefits from the Group;
(3) The amount of the obligation can be measured reliably.
Estimated liabilities are initially measured based on the best estimate of the expenditure required to fulfillthe relevant current obligations, and factors such as risks, uncertainties, and time value of money relatedto contingencies are comprehensively considered. If the time value of money has a significant impact, thebest estimate is determined by discounting the relevant future cash outflows. The Group reviews the bookvalue of estimated liabilities on the balance sheet date and adjusts the book value to reflect the currentbest estimate.If all or part of the expenses required to settle the recognized estimated liabilities are expected to becompensated by a third party or other parties, the compensation amount can only be recognizedseparately as an asset when it is basically certain that it will be received. The amount of compensationrecognized shall not exceed the book value of the liability recognized.
25、Revenue
（1）General principles
The Group recognizes revenue when it fulfills its performance obligations in the contract, that is, whenthe customer obtains control of the relevant goods or services.
If the contract contains two or more performance obligations, the Group will allocate the transaction priceto each individual performance obligation based on the relative proportion of the stand-alone selling priceof the goods or services promised by each individual performance obligation on the contractcommencement date. Revenue is measured at the transaction price of each individual performanceobligation.When one of the following conditions is met, the performance obligation is performed within a certainperiod of time; otherwise, the performance obligation is performed at a certain point in time:
①When the Group performs the contract, the customer obtains and consumes the economic benefitsbrought by the Group's performance.
②Customers can control the goods under construction during the performance of the contract by theGroup.
③The goods produced by the Group during the performance of the contract have irreplaceable uses,and the Group has the right to collect payment for the cumulative performance part completed so farduring the entire contract period.For performance obligations fulfilled within a certain period of time, the Group recognizes revenue basedon the performance progress within that period of time. When the progress of contract performance cannotbe reasonably determined, if the costs incurred by the Group are expected to be compensated, revenuewill be recognized based on the amount of costs incurred until the progress of contract performance canbe reasonably determined.For performance obligations fulfilled at a certain point in time, the Group recognizes revenue at the pointwhen the customer obtains control of the relevant goods or services. When determining whether acustomer has obtained control of goods or services, the Group will consider the following signs:
①The Group has the current right to receive payment for the goods or services, that is, the customer hascurrent payment obligations for the goods.
②The Group has transferred the legal ownership of the goods to the customer, which means that thecustomer already owns the legal ownership of the goods.
③The Group has physically transferred the goods to the customer, that is, the customer has physicallytaken possession of the goods.
④The Group has transferred the main risks and rewards of ownership of the commodity to the customer,that is, the customer has obtained the main risks and rewards of ownership of the commodity.
⑤The customer has accepted the goods or services.
⑥Other signs indicating that the customer has obtained control of the product.
（2）Specific method
The Group's revenue mainly comes from the following business types: sales of products, externalprovision of consulting and processing services.
Products sold The Group produces and sells float glass, photovoltaic glass, engineering glass, solarindustry related products, electronic glass and display device, etc.For domestic sales, the Group transports the products to the agreed delivery location in accordance withthe agreement or picks it up by the buyer. Revenue is recognized after the buyer confirms receipt or pick-up.For export sales, according to the trade terms stipulated in the sales contract, the Group recognizesrevenue after the export products go through export customs declaration procedures and are shipped inaccordance with the contract, or after they are shipped to the designated delivery location.For solar energy and other industries' photovoltaic power generation revenue,, the Group recognizes theelectricity when it is supplied to the provincial power grid company where each electric field is located,uses the settled electricity volume confirmed by both parties as the electricity sales for that month, anduses the on-grid electricity price approved by the National Development and Reform Commission or theelectricity price agreed in the contract as the sales unit price.The credit periods granted by the Group to customers in various industries are consistent with thepractices of various industries, and there is no significant financing component.The Group provides product quality assurance for the products sold and recognizes correspondingestimated liabilities. The Group does not provide any additional services or additional quality assurance,so the product quality assurance does not constitute a separate performance obligation.Glass products with sales return clauses, revenue recognition is limited to the amount of accumulatedrecognized revenue that is unlikely to result in a significant reversal. The Group recognizes liabilitiesbased on the expected return amount, and at the same time, recognizes the balance as an asset basedon the book value of the goods expected to be returned when the goods are transferred, minus theexpected costs of recovering the goods (including the impairment of the value of the returned goods).Provide consulting and processing servicesThe Group provides external consulting and processing services because customers obtain and consumethe economic benefits brought by the company's performance of the contract while the company performsthe contract. The Group recognizes revenue based on the progress of contract performance. Theprogress of contract performance is determined based on the proportion of costs incurred to the estimatedtotal costs. On the balance sheet date, the Group re-estimates the performance progress of completedservices to reflect changes in performance.When the Group recognizes revenue based on the progress of completed services, the portion for whichthe Group has obtained the unconditional right to receive payment is recognized as accounts receivable,and the remaining portion is recognized as contract assets. Accounts receivable and contract assets arerecognized as expected credit losses. Loss provisions are recognized as the basis; if the contract pricereceived or receivable by the Group exceeds the labor services completed, the excess will be recognizedas contract liabilities. The Group's contract assets and contract liabilities under the same contract arepresented on a net basis.
26、Contract costs
Contract costs include incremental costs incurred to obtain the contract and contract performance costs.The incremental costs incurred to obtain the contract refer to costs that the company would not haveincurred if it had not obtained the contract (such as sales commissions, etc.). If the cost is expected to berecovered, the company will recognize it as the contract acquisition cost and as an asset. Other expensesincurred by the Company to obtain the contract, except for the incremental costs expected to be recovered,are included in the current profits and losses when incurred.If the cost incurred to fulfill the contract does not fall within the scope of other accounting standards forenterprises such as inventory and meets the following conditions, the company will recognize it as anasset as the contract performance cost:
①The cost is directly related to a current or expected contract, including direct labor, direct materials,manufacturing overhead (or similar expenses), costs clearly borne by the customer, and other costsincurred solely because of the contract;
②This cost increases the company’s resources for fulfilling its performance obligations in the future;
③The cost is expected to be recovered.
Assets recognized for contract acquisition costs and assets recognized for contract performance costs(hereinafter referred to as "assets related to contract costs" ) are amortized on the same basis as therecognition of revenue from goods or services related to the assets and included in the current profit andloss.When the book value of assets related to contract costs is higher than the difference between the followingtwo items, the company makes impairment provisions for the excess and recognizes it as assetimpairment losses:
①The remaining consideration that the company expects to obtain from the transfer of goods or servicesrelated to the asset;
②The estimated cost that will be incurred to transfer the relevant goods or services.
27、Government subsidies
Government subsidies are recognized when the conditions attached to the government subsidies are metand can be received.Government subsidies for monetary assets are measured based on the amount received or receivable.Government subsidies for non-monetary assets are measured at fair value; if the fair value cannot beobtained reliably, they are measured at a nominal amount of 1 yuan.Government subsidies related to assets refer to government subsidies obtained by the Group for thepurchase, construction or other formation of long-term assets; in addition, government subsidies relatedto income are regarded as government subsidies.
For government documents that do not clearly stipulate the subsidy objects and can form long-term assets,the part of the government subsidy corresponding to the asset value shall be regarded as the governmentsubsidy related to the asset, and the remaining part shall be regarded as the government subsidy relatedto income; if it is difficult to distinguish, the government subsidy shall be regarded as the governmentsubsidy related to the asset. The whole is regarded as a government subsidy related to income.Government subsidies related to assets are recognized as deferred income and are included in profitsand losses in installments according to a reasonable and systematic method during the use period of therelevant assets. If government subsidies related to income are used to compensate for relevant costs orlosses that have already occurred, they will be included in the current profits and losses; if they are usedto compensate for relevant costs or losses in subsequent periods, they will be included in deferred incomeand will be included in the relevant costs or losses. The loss is included in the current profit and lossduring the period during which the loss is recognized. Government subsidies measured according to thenominal amount are directly included in the current profit and loss. The Group adopts a consistentapproach to the same or similar government subsidy business.Government subsidies related to daily activities shall be included in other income according to theeconomic business essence. Government subsidies unrelated to daily activities are included in non-operating income.When a confirmed government subsidy needs to be returned, if the book value of the relevant assets isoffset at the time of initial recognition, the book value of the assets is adjusted; if there is a balance ofrelevant deferred income, the Carrying Amount of the relevant deferred income is offset, and the excessis included in the current profit and loss; it is In other cases, it will be directly included in the current profitand loss.
28、Deferred tax assets and deferred tax liabilities
Income tax includes current income tax and deferred income tax. Except for adjustments to goodwillarising from business combinations, or deferred income taxes related to transactions or events directlyincluded in owners' equity, which are included in owners' equity, they are all included in current profits andlosses as income tax expenses.The Group adopts the balance sheet liability method to recognize deferred income tax based on thetemporary differences between the book values of assets and liabilities on the balance sheet date andtheir tax basis.Each taxable temporary difference is recognized as a related deferred income tax liability, unless thetaxable temporary difference is generated in the following transactions:
(1) Initial recognition of goodwill, or the initial recognition of assets or liabilities arising from a transactionwith the following characteristics: the transaction is not a business combination, and the transactionaffects neither accounting profits nor taxable income when the transaction occurs ( initial recognition(Except for individual transactions that result in equal amounts of taxable temporary differences anddeductible temporary differences arising from the assets and liabilities) ;
(2) For taxable temporary differences related to investments in subsidiaries, joint ventures and associates,the time of reversal of the temporary differences can be controlled and the temporary differences are likelynot to be reversed in the foreseeable future.
For deductible temporary differences, deductible losses and tax credits that can be carried forward tofuture years, the Group shall use it to offset the deductible temporary differences, deductible losses andtax credits to the extent that it is probable that it will be available. The deferred income tax assetsgenerated will be recognized to the limit of the future taxable income, unless the deductible temporarydifference is generated in the following transactions:
(1) The transaction is not a business combination, and when the transaction occurs, it affects neitheraccounting profits nor taxable income (a single transaction in which the initial recognition of assets andliabilities results in an equal amount of taxable temporary differences and deductible temporarydifferences are excepted);
(2) For deductible temporary differences related to investments in subsidiaries, joint ventures andassociates, and if the following conditions are met at the same time, the corresponding deferred incometax assets are recognized: the temporary differences are likely to be reversed in the foreseeable future,And it is likely to obtain taxable income in the future that can be used to offset deductible temporarydifferences.On the balance sheet date, the Group's deferred income tax assets and deferred income tax liabilities aremeasured at the applicable tax rate during the period when the asset is expected to be recovered or theliability is settled, and the income tax impact of the expected method of recovering the asset or settlingthe liability on the balance sheet date is reflected.On the balance sheet date, the Group reviews the book value of deferred income tax assets. If it isprobable that sufficient taxable income will not be available in future periods to offset the benefits ofdeferred tax assets, the carrying amount of the deferred tax assets will be reduced. The amount of thewrite-down is reversed when it is probable that sufficient taxable income will be obtained.On the balance sheet date, deferred income tax assets and deferred income tax liabilities are presentedas the net amount after offsetting when the following conditions are met at the same time:
( 1 ) The tax payer within the group has the legal right to settle current income tax assets and currentincome tax liabilities on a net basis;( 2 ) Deferred income tax assets and deferred income tax liabilities are related to income taxes levied bythe same tax collection and administration department on the same taxpayer within the group.
29、Leases
（1）Identification of leases
On the contract inception date, the Group, as a lessee or lessor, evaluates whether the customer in thecontract has the right to obtain substantially all the economic benefits generated from the use of theidentified assets during the use period, and has the right to direct the use of the identified assets duringthe use period. If a party in a contract transfers the right to control the use of one or more identified assetswithin a certain period in exchange for consideration, the Group determines that the contract is a lease orcontains a lease.
（2）The Group acts as lessee
On the commencement date of the lease period, the Group recognizes right-of-use assets and leaseliabilities for all leases, except for simplified short-term leases and low-value asset leases.The accounting policies for right-of-use assets are shown in Note.Lease liabilities are initially measured based on the present value of the unpaid lease payments at thebeginning of the lease term using the interest rate implicit in the lease. If the interest rate implicit in thelease cannot be determined, the incremental borrowing rate is used as the discount rate. Lease paymentsinclude: fixed payments and substantive fixed payments, if there are lease incentives, the amount relatedto lease incentives is deducted; variable lease payments that depend on the index or ratio; the exerciseprice of the purchase option, provided that the lessee is reasonable It is certain that the option will beexercised; the amount required to be paid to exercise the option to terminate the lease, provided that thelease term reflects that the lessee will exercise the option to terminate the lease; and the amount expectedto be paid based on the residual value of the guarantee provided by the lessee. Subsequently, the interestexpense of the lease liability for each period during the lease term is calculated based on the fixed periodicinterest rate and included in the current profit and loss. Variable lease payments that are not included inthe measurement of lease liabilities are included in the current profit and loss when actually incurred.Short term leaseA short-term lease refers to a lease with a lease term of no more than 12 months on the start date of thelease period, except for leases that include a purchase option.The Group will include the lease payments of short-term leases into the relevant asset costs or currentprofits and losses on a straight-line basis during each period of the lease term.Low value asset leasingLow-value asset leases refer to leases where the value of a single leased asset is less than 100,000 yuanwhen it is a brand-new asset.The Group will include the lease payments for low-value asset leases into the relevant asset costs orcurrent profits and losses on a straight-line basis during each period of the lease term.For low-value asset leases, the Group chooses to adopt the above simplified treatment method based onthe specific circumstances of each lease.Lease changesIf a lease changes and the following conditions are met at the same time, the Group will account for thelease change as a separate lease: ① The lease change expands the scope of the lease by adding theright to use one or more leased assets; ② Increased The consideration is equivalent to the individualprice of the extended portion of the lease, adjusted for the circumstances of the contract.If the lease change is not accounted for as a separate lease, on the effective date of the lease change,the Group re-allocates the consideration of the contract after the change, re-determines the lease term,
and calculates it based on the changed lease payment and the revised discount rate. Present valueremeasurement of the lease liability.If a change in the lease results in a reduction in the scope of the lease or a shortening of the lease period,the Group will accordingly reduce the book value of the right-of-use assets, and include the gains orlosses related to the partial or complete termination of the lease into the current profits and losses.If other lease changes result in the remeasurement of lease liabilities, the Group will adjust the book valueof the right-of-use assets accordingly.
（3）The Group acts as lessor
When the Group acts as a lessor, leases that substantially transfer all risks and rewards related to assetownership are recognized as finance leases, and leases other than finance leases are recognized asoperating leases.Financial leaseIn financial leases, the Group's net lease investment on the date of the lease term is recorded as theaccounting value of finance lease receivables. The net lease investment is the unguaranteed residualvalue and the lease receivables that have not been received on the date of the lease term are calculatedbased on the amount included in the lease. The sum of present values discounted with interest rates. Asthe lessor, the Group calculates and recognizes interest income for each period during the lease termbased on fixed periodic interest rates. Variable lease payments obtained by the Group as a lessor thatare not included in the measurement of the net lease investment are included in the current profit andloss when actually incurred.The derecognition and impairment of finance lease receivables shall be accounted for in accordance withthe provisions of "Accounting Standards for Business Enterprises No. 22 - Recognition and Measurementof Financial Instruments" and "Accounting Standards for Business Enterprises No. 23 - Transfer ofFinancial Assets".Operating leaseFor rents in operating leases, the Group recognizes current profits and losses according to the straight-line method in each period during the lease term. The initial direct expenses incurred in connection withthe operating lease shall be capitalized, amortized during the lease period on the same basis as the rentalincome recognition, and included in the current profit and loss in installments. Variable lease paymentsrelated to operating leases that are not included in the lease receipts are included in the current profit andloss when they actually occur.Lease changesIf an operating lease changes, the Group will account for it as a new lease from the effective date of thechange, and the amount of lease receipts received in advance or receivable related to the lease beforethe change is regarded as the amount of receipts from the new lease.If a financial lease changes and the following conditions are met at the same time, the Group will accountfor the change as a separate lease: ① The change expands the scope of the lease by adding the right
to use one or more leased assets; ② The increased consideration The amount is equivalent to theindividual price of the extended portion of the lease adjusted for the circumstances of the contract.If a financial lease is changed and is not accounted for as a separate lease, the Group will treat thechanged lease under the following circumstances: ① If the change takes effect on the leasecommencement date, the lease will be classified as an operating lease, and the Group will From theeffective date of the lease change, it will be accounted for as a new lease, and the net lease investmentbefore the effective date of the lease change will be used as the book value of the leased asset; ② If thechange takes effect on the lease commencement date, the lease will be classified as financing For leases,the Group shall conduct accounting treatment in accordance with the provisions of "Accounting Standardsfor Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments" regardingmodification or renegotiation of contracts.30、Right-of-use assets
（1）Right-of-use asset recognition conditions
Right-of-use assets refer to the Group's rights as a lessee to use the leased assets during the lease term.On the commencement date of the lease term, the right-of-use asset is initially measured at cost. Thiscost includes: the initial measurement amount of the lease liability; the lease payment amount paid on orbefore the start date of the lease term, if there is a lease incentive, deduct the amount related to the leaseincentive that has been enjoyed; the initial direct costs incurred by the Group as a lessee; The Group, asthe lessee, expects to incur costs for dismantling and removing the leased assets, restoring the site wherethe leased assets are located, or restoring the leased assets to the state agreed upon in the lease terms.As a lessee, the Group recognizes and measures costs such as demolition and restoration in accordancewith Accounting Standards for Business Enterprises No. 13 - Contingencies. Adjustments are madesubsequently for any subsequent remeasurement of the lease liability.
（2）Depreciation method for right-of-use assets
The Group uses the straight-line method to calculate depreciation. If the Group, as the lessee, canreasonably determine that it will obtain ownership of the leased asset when the lease term expires,depreciation will be accrued over the remaining useful life of the leased asset. If it is not reasonably certainthat the ownership of the leased asset will be obtained at the expiration of the lease term, depreciationwill be accrued during the shorter of the lease term and the remaining useful life of the leased asset.
（3）Note for the impairment testing method and impairment provision accrual method for right-of-use assets.
31、Safety production costs
According to relevant documents from the Ministry of Finance and the State Administration of Work Safety,the Group's subsidiaries engaged in the production and sales of polysilicon are based on the actualoperating income of the previous year and use an excess regressive method to withdraw production safetyexpenses monthly:
(a) If the operating income is 10 million yuan or less, 4.5% shall be withdrawn;(b) The portion of operating income between RMB 10 million and RMB 100 million (inclusive) shall bewithdrawn at 2.25%;(c) The portion of operating income between RMB 100 million and RMB 1 billion (inclusive) shall bewithdrawn at 0.55 % ;(d) For the portion of operating income above RMB 1 billion, 0.2 % will be withdrawn.Safety production expenses are mainly used to improve, transform and maintain safety protectionequipment and facilities. Safety production expenses are included in the cost of related products or currentprofits and losses when withdrawn, and are also recorded in special reserve accounts. When in use,expenditures within the prescribed scope of use will be directly offset against the special reserve whenthe expenditures are incurred; for capital expenditures, expenditures incurred through the accounts ofprojects under construction will be used until the project is completed and reaches the scheduledavailability. When in use, they are transferred to fixed assets, and the special reserves are offset accordingto the cost of forming the fixed assets, and the corresponding amount of accumulated depreciation isrecognized at the same time. This fixed asset will no longer be depreciated in future periods.
32、Significant accounting judgments and estimates
The Group continuously evaluates the important accounting estimates and key assumptions adoptedbased on historical experience and other factors, including reasonable expectations for future events. Theimportant accounting estimates and key assumptions that are likely to cause a significant adjustment inthe book value of assets and liabilities in the next fiscal year are as follows:
Classification of financial assetsThe Group's significant judgments involved in determining the classification of financial assets includeanalysis of business models and contractual cash flow characteristics.The Group determines the business model for managing financial assets at the level of financial assetportfolios. Factors considered include the way to evaluate and report the performance of financial assetsto key management personnel, the risks that affect the performance of financial assets and theirmanagement methods, and relevant business managers. How to get paid, etc.When the Group evaluates whether the contractual cash flows of financial assets are consistent with thebasic lending arrangements, it makes the following main judgments: whether the time distribution oramount of the principal may change during the duration due to early repayment; whether the interest isonly Includes time value of money, credit risk, other fundamental lending risks and consideration againstcosts and profits. For example, whether the amount of early repayment only reflects the unpaid principaland interest based on the unpaid principal, as well as reasonable compensation paid for early terminationof the contract.Measurement of expected credit losses on accounts receivableThe Group calculates the expected credit losses of accounts receivable through the default risk exposureof accounts receivable and the expected credit loss rate, and determines the expected credit loss rate
based on the probability of default and the loss given default rate. When determining the expected creditloss rate, the Group uses internal historical credit loss experience and other data, and adjusts historicaldata based on current conditions and forward-looking information. When considering forward-lookinginformation, the Group uses indicators including the risk of economic downturn, changes in the externalmarket environment, technical environment and customer conditions. The Group regularly monitors andreviews assumptions related to the calculation of expected credit losses.Impairment of Fixed Assets and Construction in ProgressAs of the balance sheet date, the Company assesses whether there are any indications of impairment fornon-current assets other than financial assets. When there are indications that the carrying amount of anasset cannot be recovered, impairment testing is conducted.Impairment occurs when the carrying amount of an asset or asset group exceeds its recoverable amount,which is the higher of the net amount after deducting disposal costs from fair value and the present valueof estimated future cash flows. The net amount after deducting disposal costs from fair value is determinedby referencing the sales agreement prices of similar assets in fair transactions or observable market prices,minus incremental costs directly attributable to the asset's disposal. Significant judgments are maderegarding the expected future cash flow present value, including the asset's (or asset group's) output,selling price, relevant operating costs, and the discount rate used in the present value calculation. TheCompany utilizes all relevant information available to estimate the recoverable amount, includingforecasts of output, selling prices, and related operating costs based on reasonable and supportableassumptions.Goodwill impairmentThe Group assesses whether goodwill is impaired at least annually. This requires an estimate of the valuein use of the asset group to which goodwill is assigned. When estimating value in use, the Group needsto estimate future cash flows from the asset group and select an appropriate discount rate to calculatethe present value of future cash flows.R&D expenditureWhen determining the amount to be capitalized, management must make assumptions regarding theexpected future cash generation of the asset, the discount rate that should be applied, and the expectedperiod of benefit.Deferred tax assetsDeferred tax assets should be recognized for all unused tax losses to the extent that it is probable thatsufficient taxable profits will be available against which the losses can be utilised. This requiresmanagement to use a lot of judgment to estimate the timing and amount of future taxable profits, combinedwith tax planning strategies, to determine the amount of deferred income tax assets that should berecognized.
33、Changes in important accounting policies and accounting estimates
（1）Important changes in accounting policies
Accounting Standards for Business Enterprises Interpretation No. 16The Ministry of Finance issued the "Interpretation No. 16 of Accounting Standards for BusinessEnterprises" (Financial Accounting [2022] No. 31) in November 2022 (hereinafter referred to as"Interpretation No. 16").Interpretation No. 16 stipulates that for a company that is not a business combination, the transactionaffects neither accounting profits nor taxable income (or deductible losses) when the transaction occurs,and the initial recognition of assets and liabilities results in equal amounts of taxable temporary differencesand For a single transaction with deductible temporary differences, taxable temporary differences anddeductible temporary differences arising from the initial recognition of assets and liabilities shall bedetermined in accordance with relevant provisions such as "Accounting Standards for BusinessEnterprises No. 18 - Income Tax". The corresponding deferred income tax liabilities and deferred incometax assets are recognized respectively when the transaction occurs. For the above-mentionedtransactions that occurred between the beginning of the earliest period for the presentation of financialstatements when the above provisions are first implemented and the implementation date of thisinterpretation, the enterprise shall, in accordance with the above provisions, adjust the cumulative impactnumber to the opening retained earnings and other expenses for the earliest period for presentation ofthe financial statements in accordance with the above provisions. Relevant financial statement items. Theabove accounting treatment regulations will be effective from 1 January, 2023.The Group's implementation of the above accounting policy changes will have no significant impact onthe financial statements of 31 December, 2022, 31 December, 2023, and 2023 .IV. Taxation
1、Main tax types and tax rates
| Category | Taxable basis | Tax rate |
| Value-added tax (“VAT”) | payable is calculated using the taxable sales amount multiplied by the applicable tax rate less deductible VAT input of the current period) | 3%-13% |
| Education surtax | VAT paid | 5% |
| Urban maintenance and construction tax | VAT paid | 1%-7% |
| Income tax | Taxable income | 16.5% , 25% |
2、Tax incentives and approvals
Tianjin CSG Energy-Saving Glass Co., Ltd. (“Tianjin Energy Conservation”) passed the high-techenterprise qualification review in 2021 and has obtained the "High-tech Enterprise Certificate", which isvalid for three years. 15% tax rate will be applicable within three years starting from 2021.Dongguan CSG Architectural Glass Co., Ltd. (“Dongguan CSG”) passed the high-tech enterprisequalification reexamination in 2022 and has obtained the "High-tech Enterprise Certificate", which is validfor three years, and 15% tax rate is applicable within three years starting from 2022.Wujiang CSG East China Architectural Glass Co., Ltd. (“Wujiang CSG Engineering”) passed the high-tech enterprise qualification review in 2023 and has obtained the "High-tech Enterprise Certificate", whichis valid for three years, starting from 2023.It applies to 15% tax rate for three years since 2023.Dongguan CSG Solar Glass Co., Ltd. (“Dongguan CSG Solar”) passed the high-tech enterprisequalification review in 2023 and has obtained the "High-tech Enterprise Certificate", which is valid forthree years and 15% Income tax rate is adopted within three years starting from 2023.Yichang CSG Polysilicon Co., Ltd. (“Yichang CSG Polysilicon”) passed the high-tech enterprisequalification review in 2023 and has obtained the "High-tech Enterprise Certificate", which is valid forthree years, and 15% Income tax rate is adopted within three years starting from 2023.Dongguan CSG PV-tech Co., Ltd. (“Dongguan CSG PV-tech”) passed the high-tech enterprisequalification review in 2022 and has obtained the "High-tech Enterprise Certificate", which is valid forthree years, and 15% Income tax rate is adopted within three years starting from 2022.Hebei Shichuang Glass Co., Ltd. (“Hebei Shichuang”) passed the high-tech enterprise qualification reviewin 2022 and has obtained the "High-tech Enterprise Certificate", which is valid for three years and 15%Income tax rate is adopted within three years starting from 2022. .Wujiang CSG Glass Co., Ltd. (“Wujiang CSG”) passed the high-tech enterprise qualification review in2023 and has obtained the "High-tech Enterprise Certificate", which is valid for three years and 15%Income tax rate is adopted within three years starting from 2023.Xianning CSG Glass Co Ltd. (“Xianning CSG”) passed the high-tech enterprise qualification review in2023 and has obtained the "High-tech Enterprise Certificate", which is valid for three years and 15%Income tax rate is adopted within three years starting from 2023.Xianning CSG Energy-Saving Glass Co., Ltd. (“Xianning CSG Energy-Saving”) passed the high-techenterprise qualification review in 2021 and has obtained the "High-tech Enterprise Certificate", which isvalid for three years. 15% Income tax rate is adopted within three years starting from 2021.Yichang CSG Photoelectric Glass Co., Ltd. (“Yichang CSG Photoelectric”) passed the high-techenterprise qualification review in 2021 and has obtained the "High-tech Enterprise Certificate", which isvalid for three years. 15% income tax rate will be applicable within three years starting from 2021.Yichang CSG Display Co., Ltd (“Yichang CSG Display”) passed the high-tech enterprise qualificationreview in 2021 and has obtained the "High-tech Enterprise Certificate", which is valid for three years. 15%income tax rate will be applicable within three years starting from 2021.
Qingyuan CSG New Energy-Saving Materials Co., Ltd. (“Qingyuan CSG Energy-Saving”) passed thehigh-tech enterprise qualification review in 2022 and has obtained the "High-tech Enterprise Certificate",which is valid for three years.15% income tax rate will be applied for three years starting form 2022.Hebei CSG Glass Co Ltd. (“Hebei CSG”) passed the high-tech enterprise qualification review in 2021 andhas obtained the "High-tech Enterprise Certificate", which is valid for three years. 15% corporate incometax rate will be applicable within three years starting from 2021.Shenzhen CSG Applied Technology Co Ltd. (“Shenzhen Technology”) passed the high-tech enterprisequalification review in 2021 and has obtained the "High-tech Enterprise Certificate", which is valid forthree years. 15% corporate income tax rate will be applicable within three years starting from 2021.Xianning CSG Photoelectric Glass Co., Ltd. (“Xianning Photoelectric”) passed the high-tech enterprisequalification reexamination in 2022 and has obtained the "High-tech Enterprise Certificate", which is validfor three years and applies 15% Income tax rate of enterprises within three years starting from 2022.Dongguan CSG Crystal Yuxin Materials Co., Ltd. ("Dongguan Jing Yu Company") was recognized as ahigh-tech enterprise in 2021 and has obtained the "High-tech Enterprise Certificate", which is valid forthree years and 15% corporate income tax rate is applicable within three years starting from 2021Zhaoqing CSG Energy Saving Glass Co., Ltd. (hereinafter referred to as "Zhaoqing Energy SavingCompany") was recognized as a high-tech enterprise in 2022 and has obtained the "High-tech EnterpriseCertificate", which is valid for three years and 15% Income tax rate is applied to enterprises within threeyears starting from 2022.Sichuan CSG Energy Conservation Glass Co., Ltd. (“Sichuan CSG Energy Conservation”) enjoys thepreferential corporate income tax rate for the Western Development Project. This year, the corporateincome tax rate is 15%.Chengdu CSG Glass Co., Ltd. (“Chengdu CSG”) enjoys the preferential corporate income tax rate for theWestern Development Initiative. This year, the corporate income tax rate is 15%.Xi'an CSG Energy Saving Glass Technology Co., Ltd. (hereinafter referred to as "Xi'an Energy SavingCompany") enjoys the preferential corporate income tax for the development of the western region. Thisyear, the corporate income tax rate is 15%.Guangxi CSG New Energy Materials Technology Co., Ltd. (hereinafter referred to as "Guangxi NewEnergy Materials Company") enjoys the preferential corporate income tax for the Western DevelopmentProject. This year, the corporate income tax rate is 15%.Qinghai CSG Risheng New Energy Technology Co., Ltd. (hereinafter referred to as "Qinghai New EnergyCompany") enjoys the preferential corporate income tax for the Western Development Project. This year,the corporate income tax rate is 15%.Yichang CSG New Energy Co., Ltd. (hereinafter referred to as "Yichang New Energy Company"),Zhaoqing CSG New Energy Technology Co., Ltd. (hereinafter referred to as "Zhaoqing New EnergyCompany"), Xianning CSG Photovoltaic New Energy Co., Ltd. (hereinafter referred to as "XianningPhotovoltaic Company" ) and Zhanjiang CSG New Energy Co., Ltd. (hereinafter referred to as "ZhanjiangNew Energy Company") are public infrastructure projects supported by the state as stipulated in Article87 of the "Enterprise Income Tax Law Implementation Regulations" and can enjoy " The preferential tax
policy of "Three years of exemption and three years of half reduction" means that starting from the taxyear in which the first production and operation income is obtained, corporate income tax is exemptedfrom the first to the third year, and the corporate income tax is halved from the fourth to the sixth year.Qingyuan CSG Quartz Material Co., Ltd. (hereinafter referred to as "Qingyuan Quartz Company") enjoyscorporate income tax preferential treatment for small and micro enterprises. According to the Ministry ofFinance and the State Administration of Taxation's Announcement No. 6 of 2023 "The Ministry of Financeand the State Administration of Taxation on Small and Micro Enterprises and Individual Industrial andCommercial Households" "Announcement on Preferential Income Tax Policies", from 1 January, 2023 to31 December, 2024, for small and low-profit enterprises, the annual taxable income does not exceed RMB1 million, a reduced rate of 25% will be included in the taxable income. , pay corporate income tax at atax rate of 20%. According to the Announcement No. 13 of 2022 of the Ministry of Finance and the StateAdministration of Taxation, "Announcement of the Ministry of Finance and the State Administration ofTaxation on Further Implementing Preferential Income Tax Policies for Small and Micro Enterprises", from1January, 2022 to 31 December, 2024, the annual taxable income For the amount exceeding RMB 1million but not exceeding RMB 3 million, the income shall be included in the taxable income at a reducedrate of 25%, and the corporate income tax shall be paid at a tax rate of 20%. According to theAnnouncement No. 12 of 2023 of the Ministry of Finance and the State Administration of Taxation,"Announcement on Further Supporting the Development of Small and Micro Enterprises and IndividualIndustrial and Commercial Households on Tax Policies", small and low-profit enterprises are calculatedat a reduced rate of 25% on taxable income and a tax rate of 20% The corporate income tax paymentpolicy will continue to be implemented until 31 December, 2027.Anhui CSG Quartz Material Co., Ltd. (hereinafter referred to as "Anhui Quartz Company") was recognizedas a high-tech enterprise in 2023 and has obtained the "High-tech Enterprise Certificate". The certificateis valid for three years and 15 income tax rate is applicable for years starting from 2023. .Anhui CSG New Energy Materials Technology Co., Ltd. (hereinafter referred to as "Anhui New EnergyCompany") was recognized as a high-tech enterprise in 2023 and has obtained the "High-tech EnterpriseCertificate". The certificate is valid for three years, starting from 2023.15% corporate income tax rate isapplied.According to the "Announcement on the Additional Value-Added Tax Deduction Policy for AdvancedManufacturing Enterprises" (Announcement No. 43, 2023, of the Ministry of Finance and the StateAdministration of Taxation), the company's high-tech enterprises will, from January 1, 2023 to December31, 2027 On the same day, advanced manufacturing enterprises are allowed to deduct an additional 5%of the deductible input tax for the current period to deduct the value-added tax payable.V. Notes to Consolidated Financial Statements
1、Cash at bank and on hand
| Item | 31 December 2023 | 31 December 2022 |
| Cash at bank | 3,051,261,655 | 3,242,318,251 |
| Other Currency Funds | 25,512,563 | 1,362,289,528 |
| Total | 3,076,774,218 | 4,604,607,779 |
| Including: Total overseas deposits | 31,005,196 | 52,079,105 |
At the end of the period, the amount of money used for deposits and freezes by this group was RMB25,512,563.
2、Notes receivable
| Item | 31 December 2023 | 31 December 2022 | ||||
| Carrying Amount | Provision | Book value | Carrying Amount | Provision | Book value | |
| Bank acceptance | 1,510,946,903 | - | 1,510,946,903 | 156,943,437 | - | 156,943,437 |
| Commercial acceptance | 84,258,766 | 1,685,175 | 82,573,591 | - | - | - |
| Total | 1,595,205,669 | 1,685,175 | 1,593,520,494 | 156,943,437 | - | 156,943,437 |
（1）Notes receivable pledged at the end of the period
| Item | Pledged amount |
| Bank Acceptance | 1,157,485,085 |
| Total | 1,157,485,085 |
（2）Notes receivable that have been endorsed or discounted by the Group but have not yet matured
at the end of the period
| Item | Amount not derecognized at the end of the period |
| Bank Acceptance | 268,377,108 |
| Commercial Acceptance | 27,583,198 |
| Total | 295,960,306 |
（3）Classification by bad debt accrual method
| Category | 31 December 2023 | ||||
| Carrying Amount | Provision | Book value | |||
| Amount | Proportion(%) | Amount | Expected credit loss rate (%) | ||
| Provision for bad debts on an individual basis | - | - | - | - | - |
| Provision for bad debts on a portfolio basis | 1,595,205,669 | 100 | 1,685,175 | 0.11 | 1,593,520,494 |
| Including: | |||||
| Commercial Acceptance | 84,258,766 | 5 | 1,685,175 | 2 | 82,573,591 |
| Bank Acceptance | 1,510,946,903 | 95 | - | - | 1,510,946,903 |
| Total | 1,595,205,669 | 100 | 1,685,175 | 0.11 | 1,593,520,494 |
Continued:
| Category | 31 December 2022 | |||||||
| Carrying Amount | Provision for bad debts | Book value | ||||||
| Amount | Proportion(%) | Amount | Expected credit loss rate (%) | |||||
| Provision for bad debts on an individual basis | - | - | - | - | - | |||
| Provision for bad debts on a portfolio basis | 156,943,437 | 100 | - | - | 156,943,437 | |||
| Including: | - | - | - | |||||
| Commercial Acceptance | - | - | - | |||||
| Bank Acceptance | 156,943,437 | 100 | - | - | 156,943,437 | |||
| Total | 156,943,437 | 100 | - | - | 156,943,437 | |||
| Provision amount | ||||||||
| 1 January 2023 | - | |||||||
| Accrual for this period | 1,685,175 | |||||||
| 31 December 2023 | 1,685,175 | |||||||
（4）Bad debt provisions accrued, recovered or reversed in the current period
（5）There is no actual write-off of notes receivable in this period
3、Accounts receivable
（1）Disclosure by age
| Aging | 31 December 2023 | 31 December 2022 |
| Within 1 year | 1,799,401,050 | 1,092,590,056 |
| 1 to 2 years | 42,338,430 | 167,876,479 |
| 2 to 3 years | 156,855,077 | 51,281,059 |
| over 3 years | 81,310,642 | 48,541,402 |
| Total | 2,079,905,199 | 1,360,288,996 |
| Less: provision for bad debts | 198,108,791 | 180,296,212 |
| Total | 1,881,796,408 | 1,179,992,784 |
（2）Classified disclosure according to bad debt accrual method
| Category | 31 December 2023 | ||||
| Carrying Amount | Provision | Book value | |||
| Amount | Proportion (%) | Amount | Expected credit loss rate (%) | ||
| Provision for bad debts on an individual basis | 176,357,014 | 8 | 160,074,840 | 91 | 16,282,174 |
| Provision for bad debts on a portfolio basis | 1,903,548,185 | 92 | 38,033,951 | 2 | 1,865,514,234 |
| in: | |||||
| Receivables from unrelated parties | 1,903,548,185 | 92 | 38,033,951 | 2 | 1,865,514,234 |
| Total | 2,079,905,199 | 100 | 198,108,791 | 10 | 1,881,796,408 |
Continued:
| Category | 31 December 2022 | ||||
| Carrying Amount | Provision | Book value | |||
| Amount | Proportion(%) | Amount | Expected credit loss rate (%) | ||
| Provision for bad debts on an individual basis | 196,468,864 | 14 | 157,019,809 | 80 | 39,449,055 |
| Provision for bad debts on a portfolio basis | 1,163,820,132 | 86 | 23,276,403 | 2 | 1,140,543,729 |
| Including: | |||||
| Receivables from unrelated parties | 1,163,820,132 | 86 | 23,276,403 | 2 | 1,140,543,729 |
| Total | 1,360,288,996 | 100 | 180,296,212 | 13 | 1,179,992,784 |
Accounts receivable with provision for bad debts on an individual basis
| Name | 31 December 2023 | |||
| Carrying Amount | Provision for bad debts | Expected credit loss rate (%) | Basis for accrual | |
| Total of single-item accrual customers | 176,357,014 | 160,074,840 | 91 | Mainly because the commercial acceptance bills issued by Evergrande and its subsidiaries that were endorsed by customers could not be paid and were transferred from notes receivable to accounts receivable,and part of the receivables from customers due to business disputes or customer business deterioration, part or full provision for bad debts. |
Continued:
| Name | 31 December 2022 | |||
| Carrying Amount | Provision for bad debts | Expected credit loss rate (%) | Basis for accrual | |
| Total of single-item accrual customers | 196,468,864 | 157,019,809 | 80 | Mainly because the commercial acceptance bills issued by Evergrande and its subsidiaries that were endorsed by customers could not be paid and were transferred from notes receivable to accounts receivable, and part of the receivables from customers due to business disputes or customer business deterioration, part or full provision for bad debts. |
Accounts receivable with provision for bad debts on a group basis
| 31 December 2023 | 31 December 2022 | |||||
| Carrying Amount | Provision for bad debts | Expected credit loss rate (%) | Carrying Amount | Provision for bad debts | Expected credit loss rate (%) | |
| Combined customers | 1,903,548,185 | 38,033,951 | 2 | 1,163,820,132 | 23,276,403 | 2 |
Portfolio accrual items: accounts receivable from non-related parties
（3）Bad debt provisions accrued, recovered or reversed in the current period
| Bad debt provision amount | |
| 1 January 2023 | 180,296,212 |
| Accrual for this period | 46,641,194 |
| Withdraw or transfer in this period | 27,694,156 |
| Write-off in this period | 1,134,459 |
| 31 December 2023 | 198,108,791 |
（4）Actual write-off of accounts receivable in the current period
| Item | Write-off amount |
| Accounts receivable actually written off | 1,134,459 |
（5）The top five companies with closing balances of accounts receivable collected by debtorsThe total amount of the top five accounts receivable at the end of the period collected by the debtors inthis period is 801,041,861 yuan, accounting for 39% of the total ending balance of accounts receivable.The corresponding summary amount of the ending balance of bad debt provisions is 16,020,837 yuan.
4、Receivables Financing
| Item | 31 December 2023 | 31 December 2022 |
| Bank acceptance | 529,945,623 | 1,095,412,643 |
| Bank acceptance measured at fair value | 529,945,623 | 1,095,412,643 |
The Group discounts and endorses part of the bank acceptance bills based on its daily capitalmanagement needs, so the subsidiary's bank acceptance bills are classified as financial assets measuredat fair value with changes included in other comprehensive income.The Group has no single bank acceptance bill for which impairment provision is made. At the end of thecurrent period, the Group believes that there is no significant credit risk in the bank acceptance bills heldand no significant losses will be incurred due to bank defaults.
5、Prepayments
（1）Prepayments are disclosed based on aging
| Aging | 31 December 2023 | 31 December 2022 | ||
| Amount | Proportion% | Amount | Proportion% | |
| Within 1 year | 155,075,823 | 100 | 182,578,314 | 100 |
| 1 to 2 years | 395,256 | 377,211 | ||
| 2 to 3 years | 1,766 | 153,800 | ||
| over 3 years | 3,800 | 520,498 | ||
| Total | 155,476,645 | 100 | 183,629,823 | 100 |
（2）The top five units with closing balance of prepayments collected by prepayment objects
| Item | 31 December 2023 | Percentage in total advances to suppliers balance |
| Total prepayments of the top five balances | 87,612,600 | 56 |
6、Other receivables
| Item | 31 December 2023 | 31 December 2022 |
| Other receivables | 177,957,033 | 193,847,322 |
（1）Disclosure by age
| Aging | 31 December 2023 | Balance at the end of the previous year |
| Within 1 year (including 1 year) | 22,612,560 | 27,945,528 |
| 1 to 2 years | 1,819,789 | 31,332,255 |
| 2 to 3 years | 20,535,190 | 1,421,606 |
| 3 to 4 years | 1,058,546 | 563,830 |
| 4 to 5 years | 450,650 | 2,066,855 |
| More than 5 years | 198,440,032 | 196,622,842 |
| Total | 244,916,767 | 259,952,916 |
(2) Disclosure according to the nature of the payment
| Item | 31 December 2023 | 31 December 2022 |
| Talent Fund Receivable (Note ) | 171,000,000 | 171,000,000 |
| Disbursements | 40,125,087 | 49,075,321 |
| Advance payment | 10,366,164 | 10,366,164 |
| Refundable deposits | 9,033,990 | 16,456,690 |
| Reserve loan | 594,514 | 963,222 |
| Others | 13,797,012 | 12,091,519 |
| Total | 244,916,767 | 259,952,916 |
| Less: provision for bad debts | 66,959,734 | 66,105,594 |
| Total | 177,957,033 | 193,847,322 |
Note: This fund is a subsidy fund given to the group by the government. The company entrusted its wholly-owned subsidiary Yichang CSG Silicon Materials Co., Ltd. to collect the fund. The Yichang High-techZone Management Committee also paid the full amount to Yichang CSG Silicon in 2014. After receivingthe funds, Yichang CSG Silicon Materials Co., Ltd. transferred the full amount to Yichang Hongtai RealEstate Co., Ltd. without appropriate approval by the then company's board of directors and othercompetent authorities. Yichang CSG Silicon Materials Co., Ltd. received the above funds from February21, 2014 to April 28, 2014 and then transferred the entire amount to Yichang Hongtai Real Estate Co.,Ltd.The company filed an infringement compensation lawsuit against Zeng Nan and others and YichangHongtai Real Estate Co., Ltd. on December 15, 2021, and the Shenzhen Intermediate People's Courtofficially accepted the lawsuit on January 28, 2022. The first instance of the case was completed inShenzhen Intermediate People's Court on June 21, 2022, and is currently awaiting judgment.
(3) Bad debt provision accrual
Bad debt provisions in the first stage at the end of the period
| Category | Carrying Amount | Expected credit loss rate in the next 12 months (%) | Provision for bad debts | Book value |
| Provision for bad debts on an individual basis | ||||
| Provision for bad debts on a portfolio basis | 56,522,786 | 2 | 1,050,923 | 55,471,863 |
| Unrelated party combination | 56,522,786 | 2 | 1,050,923 | 55,471,863 |
There is no provision for bad debts in the second stage at the end of the periodBad debt provisions in the third stage at the end of the period
| Category | Carrying Amount | Expected credit loss rate throughout the duration (%) | Provision for bad debts | Book value |
| Provision for bad debts on an individual basis | ||||
| Company 1 | 171,000,000 | 30 | 51,300,000 | 119,700,000 |
| Company 2 | 10,366,164 | 100 | 10,366,164 | - |
| Company 3 | 5,570,340 | 50 | 2,785,170 | 2,785,170 |
| Individual 4 | 322,905 | 100 | 322,905 | - |
| Company 5 | 1,134,572 | 100 | 1,134,572 | - |
| Total | 188,393,981 | 35 | 65,908,811 | 122,485,170 |
Bad debt provisions in the first stage at the end of the previous year
| Category | Carrying Amount | Expected credit loss rate in the next 12 months (%) | Provision for bad debts | Book value |
| Provision for bad debts on an individual basis | ||||
| Provision for bad debts on a portfolio basis | 72,693,507 | 2 | 1,331,355 | 71,362,152 |
| Unrelated party combination | 72,657,507 | 2 | 1,330,635 | 71,326,872 |
| Related party portfolio | 36,000 | 2 | 720 | 35,280 |
There is no provision for bad debts in the second stage at the end of the previous yearBad debt provisions in the third stage at the end of the previous year
| Category | Carrying Amount | Expected credit loss rate throughout the duration (%) | Provision for bad debts | Book value |
| Provision for bad debts on an individual basis | ||||
| Company 1 | 171,000,000 | 30 | 51,300,000 | 119,700,000 |
| Company 2 | 10,366,164 | 100 | 10,366,164 | - |
| Company 3 | 5,570,340 | 50 | 2,785,170 | 2,785,170 |
| Individual 4 | 322,905 | 100 | 322,905 | - |
| Total | 187,259,409 | 35 | 64,774,239 | 122,485,170 |
(4) Bad debt provisions accrued, recovered or reversed in the current period
| Provision for bad debts | Stage 1 | Stage 2 | Stage 3 | Total |
| Expected credit losses over the next 12 months | Expected credit losses throughout the entire duration (no credit impairment has occurred) | Expected credit losses throughout the lifetime (credit impairment has occurred) | ||
| 1 January 2023 | 1,331,355 | - | 64,774,239 | 66,105,594 |
| Carrying amount on 1st January 2023 that in this period: | ||||
| Accrual for this period | 314,469 | - | 1,134,572 | 1,449,041 |
| Transferred in this period | 594,901 | - | - | 594,901 |
| Sales in this period | - | - | - | - |
| Write-off in this period | - | - | - | - |
| Other changes | - | - | - | - |
| 31 December 2023 | 1,050,923 | - | 65,908,811 | 66,959,734 |
(5) No other receivables actually written off in this period
(6) Top five companies with closing balance of other receivables collected by debtors
| Company name | Nature of payment | Closing balance of other receivables | Aging | Proportion to the total closing balance of other receivables (%) | Ending balance of bad debt provision |
| Company 1 | independent third party | 171,000,000 | More than 5 years | 70 | 51,300,000 |
| Company 2 | independent third party | 14,000,000 | 2-3 years | 6 | 280,000 |
| Company 3 | independent third party | 11,556,004 | More than 5 years | 5 | 231,120 |
| Company 4 | independent third party | 10,366,164 | More than 5 years | 4 | 10,366,164 |
| Company 5 | independent third party | 5,570,340 | 2-3 years | 2 | 2,785,170 |
| Total | 212,492,508 | 87 | 64,962,454 |
7、Inventories
（1）Inventory classification
| Item | 31 December 2023 | ||
| Carrying Amount | Preparation for price decline | Book value | |
| Raw materials | 568,803,335 | 1,935,371 | 566,867,964 |
| Work in progress | 29,941,046 | - | 29,941,046 |
| Finished goods | 928,685,781 | 28,179,241 | 900,506,540 |
| Turnover materials | 93,093,127 | 183,882 | 92,909,245 |
| Total | 1,620,523,289 | 30,298,494 | 1,590,224,795 |
Continued
| Item | 31 December 2022 | ||
| Carrying Amount | Preparation for price decline | Book value | |
| raw materials | 646,622,778 | 9,065,792 | 637,556,986 |
| Work in progress | 31,745,770 | 31,745,770 | |
| Finished goods | 1,067,004,894 | 20,645,880 | 1,046,359,014 |
| Turnover materials | 68,702,610 | 422,398 | 68,280,212 |
| Total | 1,814,076,052 | 30,134,070 | 1,783,941,982 |
（2）Provision for inventories
| Item | 1 January 2023 | Increased in this | Decrease in this | 31 December 2023 |
| issue | period | |||
| Provision | Transfer or resale | |||
| Raw materials | 9,065,792 | 972,416 | 8,102,837 | 1,935,371 |
| Finished goods | 20,645,880 | 27,069,818 | 19,536,457 | 28,179,241 |
| Turnover materials | 422,398 | 109,140 | 347,656 | 183,882 |
| Total | 30,134,070 | 28,151,374 | 27,986,950 | 30,298,494 |
Provision for inventory decline (continued)
| Item | Specific basis for determining net realizable value/residual consideration and costs to be incurred | Reasons for the reversal or write-off of inventory depreciation reserves/contract performance cost impairment reserves in the current period |
| Raw materials | Estimated selling price of finished products less completion costs and taxes | Sales achieved |
| Finished goods | Estimated selling price of a single product minus sales tax | Sales achieved |
| Turnover materials | The recoverable amount is 0 | Use or scrap |
8、Noncurrent Assets Due within One Year
| Item | 31 December 2023 | 31 December 2022 |
| Large-denomination certificates of deposit maturing within one year | 84,191,224 | 20,000,000 |
9、Other current assets
| Item | 31 December 2023 | 31 December 2022 |
| VAT to be offset | 260,361,670 | 45,198,116 |
| Enterprise income tax prepaid | 18,127,608 | 30,407,477 |
| VAT input to be recognised | 33,577,420 | 32,642,483 |
| Term deposits with a maturity of less than one year | 40,000,000 | |
| Others | 469 | |
| Total | 352,066,698 | 108,248,545 |
(1) The new large amount of value-added tax to be deducted in this period is mainly caused by the largenew engineering procurement expenditure of subsidiary Qinghai CSG Risheng.10、Investment properties
（1）Investment properties measured at fair value
| Item | Houses, buildings and related land use rights |
| 1. 1 January 2023 | 290,368,105 |
| 2. Changes in this period | - |
| 3. 31 December 2023 | 290,368,105 |
（2）Failure to obtain property rights certificate
None
11、Fixed assets
1 (1) Fixed assets
| Item | Buildings | Mechinery and equipment | Motor vehicles and others | Total |
| 1. Original book value: | ||||
| 1. 1 January 2023 | 5,305,705,728 | 14,283,099,277 | 294,024,553 | 19,882,829,558 |
| 2. Increase amount in this period | 1,006,208,137 | 3,441,878,955 | 90,582,853 | 4,538,669,945 |
| (1) Purchase | 3,869,287 | 49,647,181 | 30,929,892 | 84,446,360 |
| (2) Transfer of projects under construction | 999,289,570 | 3,380,191,472 | 53,422,642 | 4,432,903,684 |
| (3) Other additions | 3,049,280 | 12,040,302 | 6,230,319 | 21,319,901 |
| 3. Reduction amount in this period | 3,881,814 | 1,579,741,559 | 15,491,668 | 1,599,115,041 |
| (1) Disposal or scrapping | - | 183,538,135 | 11,625,202 | 195,163,337 |
| (2) Transfer to construction in progress | 1,381,792,411 | 1,718,407 | 1,383,510,818 | |
| ( 3 ) Other reductions | 3,881,814 | 14,411,013 | 2,148,059 | 20,440,886 |
| 4. 31 December 2023 | 6,308,032,051 | 16,145,236,673 | 369,115,738 | 22,822,384,462 |
| 2. Accumulated depreciation | ||||
| 1. 1 January 2023 | 1,214,780,507 | 5,985,207,126 | 245,329,297 | 7,445,316,930 |
| 2. Increase amount in this period | 197,060,230 | 898,167,527 | 40,656,838 | 1,135,884,595 |
| (1) Provision | 194,909,913 | 898,021,280 | 37,791,825 | 1,130,723,018 |
| (2) Other additions | 2,150,317 | 146,247 | 2,865,013 | 5,161,577 |
| 3. Reduction amount in this period | 2,647 | 260,852,616 | 12,266,774 | 273,122,037 |
| (1) Disposal or scrapping | - | 77,213,610 | 11,345,065 | 88,558,675 |
| (2) Transfer to construction in progress | 178,386,741 | 101,347 | 178,488,088 | |
| ( 3 ) Other reductions | 2,647 | 5,252,265 | 820,362 | 6,075,274 |
| 4. 31 December 2023 | 1,411,838,090 | 6,622,522,037 | 273,719,361 | 8,308,079,488 |
| 3. Impairment provision | ||||
| 1. 1 January 2023 | 152,839,987 | 1,040,644,542 | 791,924 | 1,194,276,453 |
| 2. Increase amount in this period | - | 370,129,469 | 179,736 | 370,309,205 |
| (1) Accrual | 251,248,816 | 1,058 | 251,249,874 |
| (2) Other additions | 118,880,653 | 178,678 | 119,059,331 | |
| 3. Reduction amount in this period | - | 195,157,138 | 692,177 | 195,849,315 |
| (1) Disposal or scrapping | 86,999,018 | 192,155 | 87,191,173 | |
| (2) Other reductions | 108,158,120 | 500,022 | 108,658,142 | |
| 4. 31 December 2023 | 152,839,987 | 1,215,616,873 | 279,483 | 1,368,736,343 |
| 4. Book value | ||||
| 1. Book value at the end of the period | 4,743,353,974 | 8,307,097,763 | 95,116,894 | 13,145,568,631 |
| 2. Book value at the beginning of the period | 3,938,085,234 | 7,257,247,609 | 47,903,332 | 11,243,236,175 |
Note: Yichang Display, a subsidiary of the Group, conducted a fixed asset impairment test in this period.The recoverable amount is determined based on the present value of the expected future cash flows. Thepresent value of the asset group’s expected future cash flows is based on the asset group’s continueduse and final value. The estimated future cash flow generated during disposal is determined by selectingthe appropriate discount rate to discount the amount.Among them, the Yichang Display discount rate is selected using the pre-tax weighted average capitalcost, and the present value of the pre-tax cash flow using the pre-tax discount rate = the discounted valueof the after-tax cash flow using the after-tax discount rate is calculated.The after-tax discount rate usesthe weighted average cost of capital valuation model ("WACC"), and the calculated result is 8.11%.The forecast period is from 2024 to 2031. It is determined based on the estimated useful life of the mainproduction line equipment being 8 years.
12、Construction in progress
（1）Details of projects under construction
| Item | 31 December 2023 | 31 December 2022 | ||||
| Carrying Amount | Impairment provision | net book value | Carrying Amount | Impairment provision | net book value | |
| A new high-purity crystalline silicon project with an annual output of 50,000 tons in Haixi Prefecture, Qinghai Province | 2,646,430,785 | 2,646,430,785 | 10,319,009 | 10,319,009 | ||
| Guangxi Beihai Photovoltaic Green Energy Industrial Park (Phase I) Project | 728,103,811 | 728,103,811 | 33,213,753 | 33,213,753 | ||
| Xi'an CSG energy-saving glass production line project | 222,583,993 | 222,583,993 | 41,694,021 | 41,694,021 | ||
| Qingyuan CSG Phase I Upgrading Technical Transformation Project | 228,055,647 | 116,909,920 | 111,145,727 | 225,748,578 | 94,897,536 | 130,851,042 |
| Anhui Fengyang newly built 37.6 MW distributed photovoltaic power generation project | 83,354,432 | 83,354,432 | ||||
| Anhui Fengyang Solar Equipment Lightweight and Highly Transparent Panel Manufacturing Base Project | 917,798,737 | 917,798,737 | ||||
| Xianning CSG 1200T/D ton photovoltaic packaging material production line project | 721,820,302 | 721,820,302 | ||||
| Hebei Windows Ultra-Thin Electronic Glass Second Line Construction Project | 352,366 | 352,366 | 256,034,845 | 256,034,845 | ||
| Dongguan Photovoltaic Building B 450MWPERC battery technology upgrade project | 186,866,743 | 184,998,076 | 1,868,667 | 186,866,743 | 184,998,076 | 1,868,667 |
| Wujiang Engineering New Engineering Glass Intelligent Manufacturing Factory Construction Project | 120,473 | 120,473 | 72,885,336 | 72,885,336 | ||
| Zhaoqing CSG high-end automotive glass production line project | 1,295,717 | 1,295,717 | 40,439,362 | 40,439,362 | ||
| Dongguan Solar G6/G7 Line Process and Equipment Upgrading Project | 37,794,114 | 37,794,114 | ||||
| Zhaoqing CSG high-end energy-saving glass production line project | 4,360,729 | 4,360,729 | 14,799,352 | 14,799,352 | ||
| Anhui Fengyang Quartz Sand Project | 403,753 | 403,753 | ||||
| Wujiang Float Lightweight and High-efficiency Double Glass | 53,098 | 53,098 | ||||
| Processing Production Line Construction Project | ||||||
| Yichang CSG Polysilicon Technical Transformation Project | 507,815,356 | 56,888,576 | 450,926,780 | |||
| Xianning energy-saving production line reconstruction and expansion construction project | 25,585,501 | 25,585,501 | 5,549,681 | 5,549,681 | ||
| Other projects | 53,082,808 | 4,195,369 | 48,887,439 | 302,126,986 | 67,289,767 | 234,837,219 |
| Total | 4,688,008,361 | 362,991,941 | 4,325,016,420 | 2,867,547,670 | 347,185,379 | 2,520,362,291 |
2 (2) Movement of significant projects of construction in progress
| Project name | 1 January 2023 | current year | fixed assets in current year | current year | Accumulated amount of interest capitalization | Including: Amount of interest capitalization for the current period | Interest capitalization rate for the current period % | 31 December 2023 |
| Qingyuan CSG Phase I Upgrading Technical Transformation Project | 225,748,578 | 2,396,602 | 89,533 | - | - | - | - | 228,055,647 |
| Zhaoqing CSG high-end automotive glass production line project | 40,439,362 | 55,025,636 | 94,169,281 | 1,295,717 | ||||
| Guangxi Beihai Photovoltaic Green Energy Industrial Park (Phase I) Project | 33,213,753 | 705,147,093 | 7,442,081 | 2,814,954 | 4,622,497 | 4,570,131 | 2.20 | 728,103,811 |
| A new high-purity crystalline silicon project with an annual output of 50,000 tons in Haixi Prefecture, Qinghai Province | 10,319,009 | 2,636,455,139 | 343,363 | - | 4,251,969 | 4,251,969 | 4.17 | 2,646,430,785 |
| Anhui Fengyang Solar Equipment Lightweight and Highly Transparent Panel Manufacturing | 917,798,737 | 615,304,618 | 1,533,103,355 | 45,615,843 | 11,731,330 | 2.75 | - |
| Base Project | ||||||||
| Anhui Fengyang newly built 37.6 MW distributed photovoltaic power generation project | 83,354,432 | - | - | 402,805 | 402,805 | 4.07 | 83,354,432 | |
| Xi'an CSG energy-saving glass production line project | 41,694,021 | 180,889,972 | - | - | 1,939,591 | 1,939,591 | 3.58 | 222,583,993 |
| Xianning CSG 1200T/D ton photovoltaic packaging material production line project | 721,820,302 | 129,225,232 | 851,045,534 | 13,945,275 | - 6,505,468 | 3.60 | ||
| Total | 1,991,033,762 | 4,407,798,724 | 2,486,193,147 | 2,814,954 | 70,777,980 | 16,390,358 | 3,909,824,385 |
Movement of significant projects of construction in progress ( continued):
| Project name | Budget | The cumulative investment in the project as a proportion of the budget | project progress% | Sources of funds |
| Qingyuan CSG Phase I Upgrading Technical Transformation Project | 534,870,000 | 4% | 4% | Own funds and loans from financial institutions |
| Zhaoqing CSG high-end automotive glass production line project | 609,830,000 | 24% | 24% | private capital |
| Guangxi Beihai Photovoltaic Green Energy Industrial Park (Phase I) Project | 4,942,051,800 | 15% | 15% | Own funds and loans from financial institutions |
| A new high-purity crystalline silicon project with an annual output of 50,000 tons in Haixi Prefecture, Qinghai Province | 4,498,192,210 | 59% | 59% | Own funds and loans from financial institutions |
| Anhui Fengyang Solar Equipment Lightweight and Highly Transparent Panel Manufacturing Base Project | 3,739,020,000 | 86% | 100% | Own funds and loans from financial institutions |
| Anhui Fengyang newly built 37.6 MW distributed photovoltaic power generation project | 146,640,000 | 57% | 57% | Own funds and loans from financial institutions |
| Xi'an CSG energy-saving glass production line project | 494,000,000 | 45% | 45% | Own funds and loans from financial institutions |
| Xianning CSG 1200T/D ton photovoltaic packaging material production line project | 905,571,798 | 96% | 100% | |
| Total | 15,870,175,808 | -- | -- | -- |
3 (3) Provision for impairment of projects under construction
| Project name | 1 January 2023 | Provision for this period | Other additions | Decrease in this period | 31 December 2023 |
| Qingyuan CSG Phase I Upgrading Technical Transformation Project | 94,897,536 | 22,012,384 | 116,909,920 | ||
| Dongguan Photovoltaic Building B 450MWPERC battery technology upgrade Project | 184,998,076 | - | 184,998,076 | ||
| Other projects | 67,289,767 | 4,195,367 | 51,769,566 | 119,059,331 | 4,195,369 |
| Yichang CSG Polysilicon Technical Transformation Project | - | 56,888,576 | - | 56,888,576 | |
| Total | 347,185,379 | 26,207,751 | 108,658,142 | 119,059,331 | 362,991,941 |
During this period, an impairment test was conducted on the construction in progress. The recoverableamount of the assets was determined based on the net amount after deducting the disposal costs from
the fair value. The fair value was mainly evaluated using the replacement cost method. Appraisal value =full replacement price × new value Rate.The full replacement price generally includes equipment purchase fees, transportation and miscellaneousfees, installation and commissioning fees, basic fees, upfront and other expenses, and capital costs; thecontent and method of calculating expenses (costs) other than equipment purchase fees are based onthe characteristics of the relevant equipment and the evaluation process. The price caliber and transactionconditions of the equipment obtained are determined.Newness rate = remaining useful life of the equipment ÷ (used years of the equipment + remaining usefullife of the equipment) × 100%.The disposal costs mainly include stamp duty, legal fees, property rights transaction fees, appraisal feesand other expenses; according to the Stamp Duty Law of the People's Republic of China, the "StampDuty Items and Rates Table" and the "Opinions on Further Standardizing Lawyer Service Charges" (SiFa Tong [Sifa Tong] 2021] No. 87. According to the "Notice of the Guangdong Provincial Price Bureau onthe Charging Standards for Property Rights Transaction Services" (Guangdong Price [1999] No. 282) andthe assessment industry charging standards, the total disposal fee is calculated at 5% aftercomprehensive consideration.
13、Right-of-use assets
| Item | Land | Buildings | Total |
| 1. Original book value: | |||
| 1. 1 January 2023 | 11,790,434 | - | 11,790,434 |
| 2. Increase amount in this period | 10,032,601 | 2,984,415 | 13,017,016 |
| (1) Rent | 10,032,601 | 2,984,415 | 13,017,016 |
| 3. Reduction amount in this period | - | - | - |
| 4. Closing balance | 21,823,035 | 2,984,415 | 24,807,450 |
| 2. Accumulated depreciation | - | ||
| 1. 1 January 2023 | 1,882,021 | 1,882,021 | |
| 2. Increase amount in this period | 1,138,580 | 149,221 | 1,287,801 |
| (1) Accrual | 1,138,580 | 149,221 | 1,287,801 |
| 3. Reduction amount in this period | - | - | - |
| 4. Closing balance | 3,020,601 | 149,221 | 3,169,822 |
| 3. Impairment provision | - | ||
| 1. 1 January 2023 | - | - | - |
| 2. Increase amount in this period | - | - | - |
| 3. Reduction amount in this period | - | - | - |
| 4. Closing balance | - | - | - |
| 4. Book value | - | ||
| 1. Closing book value | 18,802,434 | 2,835,194 | 21,637,628 |
| 2. Book value at the beginning of the period | 9,908,413 | - | 9,908,413 |
Note: The new leases in this period are the land and buildings leased by Wuxuan Nanxin Mining Co., Ltd., asubsidiary of the Group, from minority shareholders. The lease period is from June 2023 to May 2033
14、Intangible assets
（1）Intangible assets
| Item | Land use rights | proprietary technologies | rights | Others | Total |
| 1. Original book value | |||||
| 1. 1 January 2023 | 1,425,431,642 | 502,074,878 | 5,351,751 | 54,579,056 | 1,987,437,327 |
| 2. Increase amount in this period | 44,382,500 | 61,678,307 | 1,086,319,795 | 18,128,913 | 1,210,509,515 |
| (1) Purchase | 44,382,500 | 1,086,319,795 | 18,128,913 | 1,148,831,208 | |
| (2) Internal research and development | - | 61,678,307 | - | - | 61,678,307 |
| 3. Reduction amount in this period | - | - | - | 123,543 | 123,543 |
| (1) Disposal | - | - | - | 123,543 | 123,543 |
| 4. 31 December 2023 | 1,469,814,142 | 563,753,185 | 1,091,671,546 | 72,584,426 | 3,197,823,299 |
| 2. Accumulated amortization | - | ||||
| 1. 1 January 2023 | 258,193,337 | 227,328,706 | 4,775,067 | 45,827,071 | 536,124,181 |
| 2. Increase amount in this period | 34,957,321 | 35,650,039 | 36,001,913 | 10,344,226 | 116,953,499 |
| (1) Accrual | 34,957,321 | 35,650,039 | 36,001,913 | 10,344,226 | 116,953,499 |
| 3. Reduction amount in this period | - | - | - | 114,410 | 114,410 |
| (1) Disposal | - | - | - | 114,410 | 114,410 |
| 4. Closing balance | 293,150,658 | 262,978,745 | 40,776,980 | 56,056,887 | 652,963,270 |
| 3. Impairment provision | - | ||||
| 1. 1 January 2023 | 13,201,347 | 9,133 | 13,210,480 | ||
| 2. Increase amount in this period | - | 41,115,084 | 13,374 | 41,128,458 | |
| (1) Accrual | 41,115,084 | 13,374 | 41,128,458 | ||
| 3. Reduction amount in this period | - | 9,133 | 9,133 | ||
| (1) Disposal | 9,133 | 9,133 | |||
| 4. Closing balance | - | 54,316,431 | 13,374 | 54,329,805 | |
| 4. Book value | - | ||||
| 1. Closing book value | 1,176,663,484 | 246,458,009 | 1,050,894,566 | 16,514,165 | 2,490,530,224 |
| 2. Book value at the beginning of the period | 1,167,238,305 | 261,544,825 | 576,684 | 8,742,852 | 1,438,102,666 |
① At the end of the period, the proportion of intangible assets formed through internal research anddevelopment to the balance of intangible assets was 15%.
15、Development expenditure
| 1 January 2023 | current year | Decrease in current year | 31 December 2023 | |
| Development expenditure | 46,755,816 | 14,922,491 | 61,678,307 | - |
For details are disclosured in Note Research and Development Expenditures.
16、Goodwill
（1）Original book value of goodwill
| Name of the invested unit or matters forming goodwill | 1 January 2023 | Increased in this issue | Decrease in this period | 31 December 2023 |
| Formed by business merger | Dispose | |||
| Tianjin CSG Architectural Glass Co., Ltd | 3,039,946 | - | - | 3,039,946 |
| Xianning CSG Photoelectric | 4,857,406 | - | - | 4,857,406 |
| Shenzhen CSG Display | 389,494,804 | - | - | 389,494,804 |
| Guangdong Licheng Company | - | 696,000 | - | 696,000 |
| Total | 397,392,156 | 696,000 | - | 398,088,156 |
（2）Provision for impairment of goodwill
| Name of the invested unit or matters forming goodwill | 1 January 2023 | Increased in this period Accrual | Decrease in this period | 31 December 2023 |
| Dispose | ||||
| Shenzhen CSG Display(i) | 389,494,804 | - | - | 389,494,804 |
| Total | 389,494,804 | - | - | 389,494,804 |
17、Long-term prepaid expenses
| Item | 1 January 2023 | Increased in this issue | Decrease in this period | 31 December 2023 |
| Amortization for the current period | ||||
| Various prepaid expenses | 2,647,939 | 21,102,553 | 4,986,063 | 18,764,429 |
18、Deferred tax assets and liabilities
（1）Deferred income tax assets before offsetting
| Item | 31 December 2023 | 31 December 2022 | ||
| Deductible/taxable temporary differences | Deferred tax assets/liabilities | Deductible/taxable temporary differences | Deferred tax assets/liabilities | |
| Deferred tax assets: | ||||
| Provision for asset impairments | 988,603,433 | 149,485,849 | 740,627,003 | 112,511,365 |
| Deductible losses | 500,056,218 | 88,815,735 | 362,029,963 | 65,461,019 |
| Government grants | 171,767,926 | 26,346,666 | 160,233,122 | 25,185,546 |
| Accrued expenses | 6,854,739 | 1,028,211 | 8,584,847 | 1,287,727 |
| assets ,etc | 124,810,353 | 19,386,825 | 100,859,773 | 15,955,296 |
| Total | 1,792,092,669 | 285,063,286 | 1,372,334,708 | 220,400,953 |
| Deferred tax liability: | ||||
| Depreciation of fixed assets | 571,131,285 | 86,841,423 | 663,136,097 | 100,893,303 |
| Investment properties | 368,564,944 | 55,284,742 | 368,564,944 | 55,284,742 |
| Total | 939,696,229 | 142,126,165 | 1,031,701,041 | 156,178,045 |
（2）Deferred tax assets or liabilities presented net of offsets
| Item | The amount of offset of deferred income tax assets and liabilities at the end of the period | Closing balance of deferred income tax assets or liabilities after offsetting | The offset amount of deferred income tax assets and liabilities at the end of the previous year | The balance of deferred income tax assets or liabilities at the end of the previous year after offsetting |
| Deferred tax assets | 62,038,255 | 223,025,031 | 58,911,204 | 161,489,749 |
| Deferred tax liability | 62,038,255 | 80,087,910 | 58,911,204 | 97,266,841 |
（3）Details of deductible temporary differences and deductible losses that have not been recognized
as deferred income tax assets
| Item | 31 December 2023 | 31 December 2022 |
| Deductible losses | 1,168,354,313 | 1,713,248,298 |
| Total | 1,168,354,313 | 1,713,248,298 |
（4）Deductible losses that have not been recognized as deferred income tax assets will expire in the
following years
| Year | 31 December 2023 | 31 December 2022 | Notes |
| 2023 | —— | 146,238,837 | |
| 2024 | 103,008,917 | 178,208,832 | |
| 2025 | 502,484,452 | 745,942,821 | |
| 2026 | 557,374,493 | 642,332,904 | |
| 2027 | 524,904 | 524,904 | |
| 2028 | 4,961,547 | —— | |
| Total | 1,168,354,313 | 1,713,248,298 |
19、Other non-current assets
| Item | 31 December 2023 | 31 December 2022 | ||||
| Carrying Amount | Impairment provision | Book value | Carrying Amount | Impairment provision | Book value | |
| Prepayment for equipment and project | 390,090,354 | 390,090,354 | 194,410,485 | 194,410,485 | ||
| Prepayment for lease of land use rights | 6,510,000 | 6,510,000 | 24,210,000 | 24,210,000 | ||
| Fixed deposits | - | - | 80,000,000 | 80,000,000 | ||
| Prepaid exploitation rights | - | - | 558,000,000 | 558,000,000 | ||
| Total | 396,600,354 | 396,600,354 | 856,620,485 | 856,620,485 | ||
20、Assets with restricted ownership or use rights
| Item | 31 December 2023 | |||
| Carrying Amount | Book value | Restricted type | restricted situation | |
| Cash at bank and on hand | 25,512,563 | 25,512,563 | Circulation restrictions such as deposits and freezes are restricted | Cash and bank |
| Notes receivable | 1,157,485,085 | 1,157,485,085 | Staking is restricted | Notes receivable |
| Fixed assets | 416,947,659 | 106,982,081 | Financing lease restricted | Fixed assets |
| Total | 1,599,945,307 | 1,289,979,729 | ||
Continued:
| Item | 31 December 2022 | |||
| Carrying Amount | Book value | Restricted type | restricted situation | |
| Cash at bank and | 10,589,528 | 10,589,528 | Circulation | Cash and bank |
| on hand | restrictions such as deposits and freezes are restricted | |||
| Notes receivable | 156,943,437 | 156,943,437 | Staking is restricted | Notes receivables |
| Fixed assets | 416,947,659 | 132,370,370 | Financing lease restricted | Fixed assets |
| Total | 584,480,624 | 299,903,335 |
21、Short-term loan
（1）Short-term loan classification
| Item | 31 December 2023 | 31 December 2022 |
| Credit loan | 108,426,590 | 201,000,000 |
| Guaranteed loan | 320,893,730 | 144,000,000 |
| Discounted bills | 7,533,263 | |
| Total | 436,853,583 | 345,000,000 |
22、Notes payable
| Type | 31 December 2023 | 31 December 2022 |
| Commercial acceptance | 90,836,911 | 290,779,095 |
| Bank acceptance | 1,950,516,278 | 703,778,401 |
| Total | 2,041,353,189 | 994,557,496 |
23、Accounts payable
| Item | 31 December 2023 | 31 December 2022 |
| Materials payable | 938,666,542 | 813,677,642 |
| Equipment payable | 994,552,522 | 483,253,256 |
| Construction expenses payable | 1,206,275,761 | 576,821,441 |
| Freight payable | 143,114,233 | 88,104,366 |
| Utilities payable | 50,982,984 | 64,738,721 |
| Others | 8,032,560 | 6,947,201 |
| Total | 3,341,624,602 | 2,033,542,627 |
Significant accounts payable aged more than one year
| Item | 31 December 2023 | Reasons for non-repayment or non-carryover |
| Engineering and equipment payments, etc. | 253,959,618 | Since the final accounts of the relevant projects have not yet been |
24、Contract liabilities
completed, they have not yet been
settled.Item
| Item | 31 December 2023 | 31 December 2022 |
| Contract liabilities | 362,538,795 | 418,051,975 |
25、Payroll payable
| Item | 1 January 2023 | Increased in this issue | Decrease in this period | 31 December 2023 |
| A. Short-term compensation | 464,930,939 | 2,133,052,776 | 2,117,811,480 | 480,172,235 |
| B. Post-employment benefits-Defined contribution plans payable | 8,685,489 | 183,310,663 | 191,996,152 | - |
| C. Termination benefits | 9,830,255 | 6,664,694 | 3,165,561 | |
| Total | 473,616,428 | 2,326,193,694 | 2,316,472,326 | 483,337,796 |
（1）Short-term compensation
| Item | 1 January 2023 | Increased in this issue | Decrease in this period | 31 December 2023 |
| 1. Wages and salaries, bonus, allowances and subsidies | 438,423,328 | 1,976,446,172 | 1,959,360,949 | 455,508,551 |
| 2. Social security | 1,583,272 | 79,265,229 | 80,848,501 | - |
| Including:Medical insurance | 957,621 | 68,888,108 | 69,845,729 | - |
| Work injury insurance | 559,430 | 7,951,575 | 8,511,005 | - |
| Maternity insurance | 66,221 | 2,425,546 | 2,491,767 | - |
| 3. Housing Provident Fund | 891,279 | 54,431,398 | 54,442,588 | 880,089 |
| 4. Labour union expenditure and Personnel education | 24,033,060 | 22,909,977 | 23,159,442 | 23,783,595 |
| Total | 464,930,939 | 2,133,052,776 | 2,117,811,480 | 480,172,235 |
（2）Defined Contribution Plan
| Item | 1 January 2023 | Increased in this issue | Decrease in this period | 31 December 2023 |
| Post-employment benefits-defined contribution plan | 8,685,489 | 183,310,663 | 191,996,152 | - |
| 1. Basic pensions | 8,403,902 | 176,643,952 | 185,047,854 | - |
| 2. Unemployment insurance | 281,587 | 6,666,711 | 6,948,298 | - |
| Total | 8,685,489 | 183,310,663 | 191,996,152 | - |
26、Taxes payable
| Taxes | 31 December 2023 | 31 December 2022 |
| VAT | 44,410,002 | 91,809,300 |
| Enterprise income tax payable | 50,021,929 | 38,330,878 |
| Individual income tax payable | 6,633,485 | 7,688,833 |
| Urban maintenance and construction tax payable | 2,667,504 | 6,755,889 |
| Education surtax payable | 2,209,407 | 4,953,777 |
| Property tax payable payable | 8,590,406 | 4,877,079 |
| Environmental protection tax payable | 1,842,557 | 1,252,845 |
| Others | 7,032,123 | 5,466,037 |
| Total | 123,407,413 | 161,134,638 |
27、Other payables
| Item | 31 December 2023 | 31 December 2022 |
| Interest payable | 8,751,408 | 99,945,325 |
| Other payables | 475,990,469 | 437,119,859 |
| Total | 484,741,877 | 537,065,184 |
（1）Interest payable
| Item | 31 December 2023 | 31 December 2022 |
| periodic payments of interest and return of principal at maturity | 8,082,760 | 5,754,599 |
| Interest of corporate bonds | - | 92,258,065 |
| Interest of short-term borrowings | 668,648 | 1,932,661 |
| Total | 8,751,408 | 99,945,325 |
（2）Other payables (Disclosured by nature)
| Item | 31 December 2023 | 31 December 2022 |
| construction contractors | 351,439,479 | 331,974,002 |
| Accrued cost of sales(note) | 67,861,475 | 62,936,670 |
| Temporary receipts for third parties | 7,277,368 | 2,318,135 |
| Payable for contracted labour costs | 27,689,963 | 28,696,828 |
| Others | 21,722,184 | 11,194,224 |
| Total | 475,990,469 | 437,119,859 |
Note: It represented the payment made to external third parties arising from undertaking the rights ofdebtor and creditor, comprising water and electricity, professional service fee and travelling expensesetc.
28、Current portion of non-current libilities
| Item | 31 December 2023 | 31 December 2022 |
| Current portion of long-term borrowings | 1,206,872,898 | 443,216,290 |
| Current portion of debentures payable | 1,999,316,522 | |
| payable | 40,939,718 | 38,900,194 |
| Lease liabilities due within one year | 1,079,363 | - |
| Total | 1,248,891,979 | 2,481,433,006 |
29、Other current liabilities
| Item | 31 December 2023 | 31 December 2022 |
| Output VAT to be transferred | 44,121,680 | 50,107,240 |
| Notes that derecognised | 288,534,731 | - |
| Supply Chain Finance, etc. | 121,676,275 | 300,000 |
| Total | 454,332,686 | 50,407,240 |
30、Long-term borrowings
| Item | 31 December 2023 | 31 December 2022 |
| Credit loan | 1,949,750,000 | 1,564,220,000 |
| Guaranteed loan | 5,478,771,574 | 3,232,586,270 |
| Total | 7,428,521,574 | 4,796,806,270 |
| Less: Long-term borrowings due within one year | 1,206,872,898 | 443,216,290 |
| Total | 6,221,648,676 | 4,353,589,980 |
31、Lease liabilities
| Item | 31 December 2023 | 31 December 2022 |
| Lease liability | 16,213,925 | 3,564,330 |
| Less: Lease liabilities due within one year | 1,079,363 | - |
| Total | 15,134,562 | 3,564,330 |
32、Long-term payables
| Item | 31 December 2023 | 31 December 2022 |
| Long-term payables | 88,204,163 | 129,236,878 |
（1）Long-term payables (disclosured by nature)
| Item | 31 December 2023 | 31 December 2022 |
| Finance lease payments payable | 129,143,881 | 168,137,072 |
| Less: Long-term payables due within one year | 40,939,718 | 38,900,194 |
| Total | 88,204,163 | 129,236,878 |
33、Provisions
| Item | 31 December 2023 | 31 December 2022 | Causes |
| Pending litigation | 1,251,941 | - | |
| Retirement obligation | 11,798,141 | - | Note |
| Total | 13,050,082 | - |
Note: In accordance with legal provisions such as the "Mining Geological Environmental ProtectionRegulations" and the "Land Reclamation Regulations", the company estimates disposal costs inaccordance with the relevant provisions of the Accounting Standards for Business Enterprises.
34、Deferred Income
| Item | 1 January 2023 | Increased in this issue | Decrease in this period | 31 December 2023 | Causes |
| Government grants | 449,875,380 | 30,690,950 | 50,422,500 | 430,143,830 |
For details of government grants included in deferred income, please refer to Note Government grants.
35、Share capital (unit: share)
| Item | 1 January 2023 | Movement for the year ended 31 December 2023 (+, -) | 31 December 2023 | ||||
| Issue new shares | Bonus shares | Conversion of Provident Fund into Shares | Other | Subtotal | |||
| Total number of ordinary shares | 3,070,692,107 | - | - | - | - | - | 3,070,692,107 |
36、Capital reserve
| Item | 1 January 2023 | Increased in this issue | Decrease in this period | 31 December 2023 |
| Share premium | 655,424,260 | - | 6,257,671 | 649,166,589 |
| Other capital surplus | -58,427,175 | - | -58,427,175 | |
| Total | 596,997,085 | - | 6,257,671 | 590,739,414 |
Note: The decrease in capital reserve in this period was caused by the purchase of minority shareholders’equity in the subsidiary Dongguan Jingyu.
37、Other comprehensive income
Other comprehensive income attributable to the parent company in the balance sheet:
| Item | 1 January 2023 (1) | 2023 | 31 December 2023 (4) = (1) + (2) - (3) | |
| Attributable to parent company after tax (2) | Less: Included in other comprehensive income in the previous period and transferred to retained earnings in the current period (3) | |||
| income items which will not be reclassified subsequently to profit or loss | - | - | - | - |
| income items which will be reclassified subsequently to profit or loss | 170,860,478 | 6,523,993 | - | 177,384,471 |
| foreign currency financial statements | 7,158,681 | 6,523,993 | - | 13,682,674 |
| 2. Financial rewards for energy-saving technical retrofits | 2,550,000 | - | - | 2,550,000 |
| 3. Investment properties | 161,151,797 | - | - | 161,151,797 |
| Total other comprehensive income | 170,860,478 | 6,523,993 | - | 177,384,471 |
Other comprehensive income attributable to the parent company in the income statement:
| Item | 2023 | ||||
| Amount before income tax for the current period (1) | Less: included in other comprehensive income in the previous period and transferred to | Less: Income tax expense (3) | Less: Attributable to minority shareholder | Attributable to parent company after tax (5) = | |
| profit and loss in the current period (2) | s after tax (4) | (1)-(2)-(3)-(4) | |||
| 1. Other comprehensive income that will not be reclassified into profit or loss | - | - | - | - | - |
| 2. Other comprehensive income that will be reclassified into profit and loss | 6,523,993 | - | - | - | 6,523,993 |
| foreign currency financial statements | 6,523,993 | 6,523,993 | |||
| Total | 6,523,993 | - | - | - | 6,523,993 |
38、Special reserves
| Item | 1 January 2023 | Increased in this issue | Decrease in this period | 31 December 2023 |
| Safety production costs | 731,580 | 10,077,969 | 9,398,410 | 1,411,139 |
The special reserves added in this period are the production safety expenses of special equipmentextracted according to the prescribed standards in accordance with the "Administrative Measuresfor the Extraction and Use of Enterprise Safety Production Expenses" by Yichang Silicon Materials,a subsidiary of the Group. The amount of reserves is reduced in this period based on actual usage.
39、Surplus reserve
| Item | 1 January 2023 | Increased in this issue | Decrease in this period | 31 December 2023 |
| Statutory surplus reserve | 1,100,781,433 | 175,429,297 | - | 1,276,210,730 |
| Discretionary surplus reserve | 127,852,568 | - | - | 127,852,568 |
| Total | 1,228,634,001 | 175,429,297 | - | 1,404,063,298 |
40、Undistributed profits
| Item | 2023 | 2022 | Distribution ratio |
| Undistributed profits at the end of the previous period before adjustments | 7,786,968,455 | 6,447,650,867 | -- |
| Adjust the total amount of undistributed profits at the beginning of the period (increase +, decrease -) | - | - | -- |
| Adjusted opening undistributed profits | 7,786,968,455 | 6,447,650,867 | |
| Add: Net profit attributable to shareholders of the parent company for the current period | 1,655,614,446 | 2,037,202,500 | -- |
| Less: Withdrawal from statutory surplus reserve | 175,429,297 | 83,746,491 | |
| Dividends payable on common shares | 460,603,816 | 614,138,421 | |
| Undistributed profit at the end of the period | 8,806,549,788 | 7,786,968,455 |
41、Operating income and operating costs
（1）Operating income and operating costs
| Item | 2023 | 2022 | ||
| Revenue | Cost | Revenue | Cost | |
| Principal operation | 17,974,268,654 | 14,049,399,952 | 14,944,821,360 | 10,882,072,965 |
| Other operations | 220,595,712 | 91,672,219 | 253,885,638 | 124,722,408 |
| Total | 18,194,864,366 | 14,141,072,171 | 15,198,706,998 | 11,006,795,373 |
（2）Operating income and operating costs by industry (or product type)
| Main product type (or industry) | 2023 | 2022 | ||
| Revenue | Cost | Revenue | Cost | |
| Principal operation: | ||||
| Glass industry | 14,610,084,880 | 11,470,733,662 | 9,998,264,863 | 7,642,662,331 |
| Electronic glass and display device industry | 1,526,088,005 | 1,297,600,298 | 1,596,733,096 | 1,226,054,958 |
| Solar energy and other industries | 2,090,567,358 | 1,536,136,861 | 3,690,753,344 | 2,356,518,419 |
| Unassigned industry type | 2,599,280 | - | 2,232,800 | - |
| Inter-segment elimination | -255,070,869 | -255,070,869 | -343,162,743 | -343,162,743 |
| Total | 17,974,268,654 | 14,049,399,952 | 14,944,821,360 | 10,882,072,965 |
| Other business: | ||||
| Sales of raw materials and others | 220,595,712 | 91,672,219 | 253,885,638 | 124,722,408 |
| Total | 18,194,864,366 | 14,141,072,171 | 15,198,706,998 | 11,006,795,373 |
（3）Operating income and operating costs by region
| Principal operation areas | 2023 | 2022 | ||
| Revenue | Cost | Revenue | Cost | |
| Chinese mainland | 16,639,820,052 | 12,884,833,088 | 14,031,154,824 | 10,079,593,782 |
| Overseas | 1,555,044,314 | 1,256,239,083 | 1,167,552,174 | 927,201,591 |
| Total | 18,194,864,366 | 14,141,072,171 | 15,198,706,998 | 11,006,795,373 |
（4）Main business Revenue and main business costs by the time of commodity transfer
| Item | 2023 | |||||||||
| Glass industry | Electronic glass and display device industry | Solar energy and other industries | Unassigned industry type | Inter-segment elimination | ||||||
| Revenue | Cost | Revenue | Cost | Revenue | Cost | Revenue | Cost | Revenue | Cost | |
| Main business | ||||||||||
| Among them: confirmed at a certain point in time | 14,610,084,880 | 11,470,733,662 | 1,526,088,005 | 1,297,600,298 | 2,090,567,358 | 1,536,136,861 | 2,599,280 | - | -255,070,869 | -255,070,869 |
| Total | 14,610,084,880 | 11,470,733,662 | 1,526,088,005 | 1,297,600,298 | 2,090,567,358 | 1,536,136,861 | 2,599,280 | - | -255,070,869 | -255,070,869 |
42、Taxes and surcharges
| Item | 2023 | 2022 |
| Urban maintenance and construction tax | 36,461,120 | 38,620,656 |
| Education fee surcharge | 29,929,326 | 31,008,119 |
| Property tax | 44,961,520 | 31,807,938 |
| Land holding tax | 22,258,942 | 17,451,373 |
| Stamp duty | 13,454,419 | 8,844,793 |
| Environmental protection tax | 6,287,965 | 4,814,077 |
| Others | 5,024,847 | 2,926,836 |
| Total | 158,378,139 | 135,473,792 |
For details on the calculation and payment standards of various taxes and surcharges, please refer toNote Taxes.
43、Sales expenses
| Item | 2023 | 2022 |
| Employee's salary | 209,449,335 | 209,351,728 |
| Social entertainment expenses | 25,427,207 | 19,052,349 |
| Travel expenses | 14,561,148 | 8,234,864 |
| Rental fees | 11,347,234 | 9,418,713 |
| Shipping fee | 2,661,265 | 5,632,947 |
| Vehicle usage fee | 8,355,362 | 9,244,459 |
| Insurance | 4,418,905 | 17,698,899 |
| Office expenses | 3,916,626 | 3,848,589 |
| Others | 37,565,061 | 31,272,428 |
| Total | 317,702,143 | 313,754,976 |
44、General and administrative expenses
| Item | 2023 | 2022 |
| Employee's salary | 484,123,255 | 434,953,745 |
| Depreciation and amortization | 189,979,394 | 114,878,297 |
| Office expenses | 37,210,330 | 34,156,691 |
| Utility bills | 8,323,198 | 6,987,706 |
| Canteen fees | 12,373,011 | 10,448,596 |
| Travel expenses | 11,429,040 | 6,123,944 |
| Rental fees | 2,468,974 | 7,580,873 |
| Vehicle usage fee | 7,027,689 | 7,592,501 |
| Social entertainment expenses | 24,623,182 | 19,657,929 |
| Union funds | 22,320,175 | 19,320,629 |
| Consulting fee | 13,111,241 | 12,931,584 |
| Others | 52,381,648 | 44,306,410 |
| Total | 865,371,137 | 718,938,905 |
45、Research and Development Expenses
| Item | 2023 | 2022 |
| Research and development expenses | 739,301,765 | 644,146,614 |
46、Financial expenses
| Item | 2023 | 2022 |
| Interest of borrowings | 249,878,813 | 269,234,431 |
| Less: Capitalization of interest | 21,719,175 | 56,510,168 |
| Interest expense | 228,159,638 | 212,724,263 |
| Less: Interest income | 72,612,051 | 71,751,429 |
| Exchange gains and losses | -930,640 | 3,466,699 |
| Handling fees and others | 4,209,158 | 3,773,449 |
| Total | 158,826,105 | 148,212,982 |
47、Other income
| Item | 2023 | 2022 |
| Government subsidy amortization | 50,422,500 | 117,125,948 |
| Industry Support Fund | 2,821,700 | 4,843,800 |
| Government incentive funds | 42,923,303 | 45,036,841 |
| Scientific research funding subsidies | 8,354,639 | 6,629,170 |
| Tax benefits and rebates | 70,313,326 | 3,811,340 |
| Others | 8,762,771 | 10,920,682 |
| Total | 183,598,239 | 188,367,781 |
48、Investment income
| Item | 2023 | 2022 |
| Investment income during the holding period of trading financial assets | - | 27,665,396 |
| Others | -6,610,842 | 3,902,458 |
| Total | -6,610,842 | 31,567,854 |
49、Credit impairment losses (losses are listed with “—” sign)
| Item | 2023 | 2022 |
| Bad debt losses on notes receivable | -1,685,175 | |
| Bad debt losses on accounts receivable | -18,947,038 | -44,501,593 |
| Bad debt losses on other receivables | -854,140 | -3,218,514 |
| Total | -21,486,353 | -47,720,107 |
50、Asset impairment losses (losses are listed with "-" sign)
| Item | 2023 | 2022 |
| Inventory depreciation loss | -28,151,374 | -28,315,491 |
| Impairment losses on fixed assets | -251,249,874 | -4,997,092 |
| Impairment losses on projects under construction | -26,207,751 | - |
| Goodwill impairment loss | - | -122,250,507 |
| Impairment losses on intangible assets | -41,128,458 | |
| Total | -346,737,457 | -155,563,090 |
51、Asset disposal gain (losses are listed with "-" sign)
| Item | 2023 | 2022 |
| Profit from disposal of fixed assets (losses are listed with “-”) | -551,072 | 15,213,059 |
52、Non-operating income
| Item | 2023 | 2022 | Amount included in non-recurring gains and losses for the current period |
| Caim income | 748,894 | 305,439 | 748,894 |
| Insurance claim | 3,588,286 | 9,054,400 | 3,588,286 |
| Unable to pay | 13,792,192 | 9,954,737 | 13,792,192 |
| Others | 5,062,035 | 3,377,696 | 4,557,807 |
| Total | 23,191,407 | 22,692,272 | 22,687,179 |
53、Non-operating Expenses
| Item | 2023 | 2022 | Amount included in |
| non-recurring gains and losses for the current period | |||
| Losses due to damage or scrapping of non-current assets | 11,361,977 | 2,752,304 | 11,361,977 |
| Donation expenditure | 611,914 | 488,577 | 611,914 |
| Compensation expenses | 493,777 | 655,574 | 493,777 |
| Others | 953,227 | 3,170,723 | 463,363 |
| Total | 13,420,895 | 7,067,178 | 12,931,031 |
54、Income tax expenses
（1）Income tax expense details
| Item | 2023 | 2022 |
| Current income tax calculated in accordance with tax laws and relevant regulations | 164,475,016 | 129,071,035 |
| Deferred income tax expense | -78,714,213 | 106,416,724 |
| Total | 85,760,803 | 235,487,759 |
（2）The relationship between income tax expenses and total profits
| Item | 2023 | 2022 |
| The total profit | 1,632,195,933 | 2,278,874,947 |
| Income tax expense calculated at applicable tax rate | 252,569,882 | 391,337,658 |
| The impact of tax rate changes on the opening deferred income tax balance | 5,151,501 | 3,912,386 |
| Adjustments to current income taxes in prior periods | -8,752,897 | -7,776,520 |
| Non-deductible costs, expenses and losses | 3,932,515 | 8,735,749 |
| The tax impact of utilizing unrecognized deductible losses and deductible temporary differences in previous years (filled in with "-") | -53,661,041 | -69,079,756 |
| Tax implications of unrecognized deductible losses and deductible temporary differences | 832,711 | 131,226 |
| The impact of obtaining tax incentives (fill in with "-") | -114,311,868 | -91,772,984 |
| Income tax expense | 85,760,803 | 235,487,759 |
55、Cash Flow Statement Item Notes
（1）Cash received related to other operating activities
| Item | 2023 | 2022 |
| Government subsidy | 114,320,554 | 77,146,968 |
| Interest income | 72,612,051 | 71,751,429 |
| Operating deposits and security deposits | 166,274,841 | 18,562,038 |
| Others | 18,001,612 | 18,513,134 |
| Total | 371,209,058 | 185,973,569 |
（2）Cash paid related to other operating activities
| Item | 2023 | 2022 |
| Office expenses | 50,699,287 | 45,107,807 |
| Canteen fees | 43,439,068 | 40,379,269 |
| Social entertainment expenses | 50,854,382 | 38,066,795 |
| Insurance | 19,583,231 | 28,837,239 |
| Maintenance fees | 38,699,597 | 28,584,497 |
| Travel expenses | 35,150,855 | 19,865,565 |
| Rental fees | 18,400,558 | 19,010,554 |
| Vehicle usage fee | 17,075,085 | 18,761,308 |
| Consulting fee | 16,742,015 | 15,645,923 |
| Bank fees | 4,121,148 | 3,773,449 |
| Others | 119,041,903 | 110,031,145 |
| Total | 413,807,129 | 368,063,551 |
（3）Cash received from other investing activities
| Item | 2023 | 2022 |
| Collect deposits and security deposits | 15,521,326 | 29,927,321 |
| Others | 10,000,000 | - |
| Total | 25,521,326 | 29,927,321 |
（4）Cash paid related to significant investment activities
| Item | 2023 | 2022 |
| Engineering project construction expenditure | 4,267,442,530 | 3,416,942,337 |
| Financial investment expenses | 40,000,000 | 2,698,160,000 |
| Total | 4,307,442,530 | 6,115,102,337 |
（5）Cash received from other financing activities
| Item | 2023 | 2022 |
| Minority shareholder borrowings | 12,000,000 | - |
（6）Cash paid related to financing activities
| Item | 2023 | 2022 |
| Repay finance lease payments | 45,896,547 | 46,045,514 |
| Fundraising fee | 562,168 | - |
| Financing deposits and guarantee deposits | 100,000 | - |
| Total | 46,558,715 | 46,045,514 |
（7）Changes in various liabilities arising from financing activities
| Item | 1 January 2023 | Cash changes | non-cash changes | 31 December 2023 | |
| Cash inflow | cash outflow | other | |||
| Short-term loan | 345,000,000 | 431,653,583 | 339,800,000 | 436,853,583 | |
| Long-term borrowings (including long-term borrowings due within one year) | 4,796,806,270 | 3,390,838,317 | 759,123,013 | 7,428,521,574 | |
| Bonds payable (including bonds payable due within one year) | 1,999,316,522 | 2,000,000,000 | 683,478 | - | |
| Total | 7,141,122,792 | 3,822,491,900 | 3,098,923,013 | 683,478 | 7,865,375,157 |
56、Cash Flow Statement Supplementary Information
（1）Cash Flow Statement Supplementary Information
| Additional materials | 2023 | 2022 |
| 1. Adjust net profit to cash flow from operating activities: | ||
| Net profit | 1,546,435,130 | 2,043,387,188 |
| Add: asset impairment loss | 346,737,457 | 155,563,090 |
| Credit impairment loss | 21,486,353 | 47,720,107 |
| Fixed asset depreciation | 1,130,723,018 | 931,508,062 |
| Depreciation of right-of-use assets | 1,287,801 | 2,022,712 |
| Amortization of intangible assets | 116,953,499 | 65,785,684 |
| Amortization of long-term deferred expenses | 4,986,063 | 1,835,784 |
| Losses from disposal of fixed assets, intangible assets and other long-term assets (income is listed with a “-” sign) | 9,628,136 | -15,213,059 |
| Financial expenses (income is listed with "-") | 228,159,638 | 212,724,263 |
| Investment losses (income is listed with "-") | -8,015,482 | -31,567,854 |
| Decrease in deferred income tax assets (increases are indicated with "-") | -61,535,282 | 93,555,317 |
| Increase in deferred income tax liabilities (decreases are indicated with "-") | -17,178,931 | 12,861,407 |
| Decrease in inventory (increases are listed with "-") | 193,552,763 | -713,041,551 |
| Decrease in operating receivables (increases are indicated with a “-” sign) | -1,760,462,941 | -1,508,659,625 |
| Increase in operating payables (decreases are indicated with a “-” sign) | 996,953,703 | 650,035,930 |
| other | 10,077,969 | 8,605,776 |
| Net cash flow from operating activities | 2,759,788,894 | 1,957,123,231 |
| 3. Net changes in cash and cash equivalents: | ||
| Closing balance of cash | 3,051,261,655 | 4,594,018,251 |
| Less: 1 January 2023 of cash | 4,594,018,251 | 2,756,477,572 |
| Add: Closing balance of cash equivalents | ||
| Less: Beginning balance of cash equivalents | ||
| Net increase in cash and cash equivalents | - 1,542,756,596 | 1,837,540,679 |
（2）Net cash paid to acquire subsidiaries in the current period
| Item | 2023 |
| Cash or cash equivalents paid in the current period for business mergers that occurred in the current period | 696,000 |
| Among them: Guangdong Licheng Company | 696,000 |
| Less: Cash and cash equivalents held by the company at the date of purchase | - |
| Among them: Guangdong Licheng Company | - |
| Add: Cash or cash equivalents paid in the current period for business combinations that occurred in previous periods | - |
| Net cash paid for obtain subsidiaries | 696,000 |
（3）Composition of cash and cash equivalents
| Item | 31 December 2023 | 31 December 2022 |
| 1. Cash | 3,051,261,655 | 4,594,018,251 |
| Of which: cash on hand | - | - |
| Bank deposits available for payment at any time | 3,051,261,655 | 3,242,318,251 |
| Funds in other currencies readily available for payment | - | 1,351,700,000 |
| 2. Cash equivalents | - | - |
| Including: Bond investments due within three months | - | - |
| 3. Closing balance of cash and cash equivalents | 3,051,261,655 | 4,594,018,251 |
（4）Monetary funds other than cash and cash equivalents
| Item | 31 December 2023 | 31 December 2022 | Reasons why it is not cash and cash equivalents |
| Other monetary fund | 25,512,563 | 10,589,528 | The use of margin deposits, etc. is restricted |
57、Foreign currency monetary items
| Item | Ending foreign currency balance | Conversion exchange rate | Ending balance converted into RMB |
| Money funds | |||
| Of which: Hong Kong dollars | 10,085,239 | 0.9062 | 9,139,244 |
| Australian dollar | 798 | 4.8484 | 3,867 |
| Dollar | 4,713,921 | 7.0827 | 33,387,290 |
| EUR | 12,642 | 7.8592 | 99,356 |
| JPY | 6,001,554 | 0.0502 | 301,278 |
| Singapore dollar | 25,498 | 5.3772 | 137,108 |
| Accounts receivable | |||
| Of which: Hong Kong dollars | 6,809,125 | 0.9062 | 6,170,429 |
| Dollar | 37,268,927 | 7.0827 | 263,964,630 |
| EUR | 834,785 | 7.8592 | 6,560,745 |
| Accounts payable | |||
| Of which: US dollars | 3,803,804 | 7.0827 | 26,941,200 |
| EUR | 166,156 | 7.8592 | 1,305,853 |
| JPY | 4,722,510 | 0.0502 | 237,070 |
| Hong Kong dollar | 60,601 | 0.9062 | 54,917 |
| GBP | 11,000 | 9.0411 | 99,452 |
（1）Foreign currency monetary items
VI. R & D spending
1、R & D spending
| Item | 2023 | 2022 |
| Material | 381,619,773 | 327,252,319 |
| Labor costs | 278,856,715 | 274,026,389 |
| Fees and others | 93,747,768 | 90,691,018 |
| Total | 754,224,256 | 691,969,726 |
| Among them: expense | 739,301,765 | 644,146,614 |
| Capitalization | 14,922,491 | 47,823,112 |
VII. Interests in other entities
1、Interests in subsidiaries
（1）The structure of a business group
| Subsidiary name | Registered capital | Principal place of business | Registration | Nature of business | Shareholding ratio % | How to obtain | |
| direct | indirect | ||||||
| Chengdu CSG Company | 260 million yuan | Chengdu, China | Chengdu, China | Development, production and sales of various special glasses | 75 | 25 | set up |
| Sichuan Energy Saving Company | 180 million yuan | Chengdu, China | Chengdu, China | Development, production and sales of various special | 75 | 25 | Survival and separation |
| glasses and glass deep processing | |||||||
| Tianjin Energy Saving Company | 336 million yuan | Tianjing, China | Tianjing, China | Development, production and sales of energy-saving special glass | 75 | 25 | set up |
| Dongguan Engineering Company | 240 million yuan | Dongguan, China | Dongguan, China | Glass deep processing | 75 | 25 | set up |
| Dongguan Solar Energy Company | 480 million yuan | Dongguan, China | Dongguan, China | Production and sales of solar glass products | 75 | 25 | set up |
| Dongguan Photovoltaic Company | 516 million yuan | Dongguan, China | Dongguan, China | Production and sales of high-tech green battery products and their components | 100 | set up | |
| Yichang Silicon Materials Company | 1,467.98 million yuan | Yichang, China | Yichang, China | Production and sales of high-purity silicon material products | 75 | 25 | set up |
| Wujiang Engineering Company | 320 million yuan | Wujiang, China | Wujiang, China | Glass deep processing | 75 | 25 | set up |
| Hebei CSG Company | US$48.06 million | Yongqing, China | Yongqing, China | Production and sales of various special glasses | 75 | 25 | set up |
| Wujiang CSG Company | 565.04 million yuan | Wujiang, China | Wujiang, China | Production and sales of various special glasses | 100 | set up | |
| CSG (Hong Kong) Co., Ltd. | 86 440,000 Hong Kong dollars | China Hong Kong | China Hong Kong | investment holding | 100 | set up | |
| Xianning Float Co., Ltd. | 235 million yuan | Xianning, China | Xianning, China | Production and sales of special glass | 75 | 25 | set up |
| Xianning Energy Saving Company | 215 million yuan | Xianning, China | Xianning, China | Glass deep processing | 75 | 25 | Survival and separation |
| Qingyuan Energy Saving Company | 1,055 million yuan | Qingyuan, China | Qingyuan, China | Production and sales of various ultra-thin electronic | 100 | set up |
| glasses | |||||||
| Shenzhen CSG Financial Leasing Co., Ltd. | 300 million yuan | Shenzhen, China | Shenzhen, China | Financial leasing business, etc. | 75 | 25 | set up |
| Jiangyou sand mining company | 100 million yuan | China Jiangyou | China Jiangyou | Production and sales of silica sand and its by-products | 100 | set up | |
| Shenzhen Display Company | 143 million yuan | Shenzhen, China | Shenzhen, China | Production and sales of display component products | 60.8 | Buy | |
| Zhaoqing Energy Saving Company | 200 million yuan | Zhaoqing, China | Zhaoqing, China | Production and sales of various special glasses | 100 | set up | |
| Zhaoqing Automobile Company | 200 million yuan | Zhaoqing, China | Zhaoqing, China | Production and sales of various special glasses | 100 | set up | |
| Anhui New Energy Company | 1.75 billion yuan | Fengyang, China | Fengyang, China | Production and sales of solar glass products | 100 | set up | |
| Anhui Quartz Company | 75 million yuan | Fengyang, China | Fengyang, China | Quartzite mining and processing | 100 | set up | |
| Anhui Silicon Valley Mingdu Mining Company | 360 million yuan | Fengyang, China | Fengyang, China | Mineral resource mining | 60 | set up | |
| Xi'an Energy Saving Company | 150 million yuan | Xi'an, China | Xi'an, China | Production and sales of various special glasses | 55 | 45 | set up |
| Guangxi New Energy Materials Company | 600 million yuan | Beihai, China | Beihai, China | Production and sales of solar glass products | 75 | 25 | set up |
2、Business combination not under common control
（1）Business mergers not involving enterprises under common control that occurred during the current
period
| Purchased party name | Equity acquisition time | Equity acquisition cost | Equity acquisition ratio (%) | Equity acquisition method | Purchase date | Basis for determining purchase date | Income of the purchased party from the date of purchase to the end of the period | Net profit of the purchased party from the date of purchase to the end of the period | The cash flow of the purchased party from the purchase date to the end of the period |
| Guangdong Licheng Company | March 21, 2023 | 696,000 | 100 | cash purchase | March 21, 2023 | actual control | 3,356,743 | -1,080,540 | 29,864 |
（2）Merger costs and goodwill
| Item | Guangdong Licheng Company |
| Combined cost: | |
| Cash | 696,000 |
| Total | 696,000 |
| Less: Share of fair value of identifiable net assets acquired | - |
| The amount by which goodwill/merger cost is less than the fair value share of identifiable net assets acquired | 696,000 |
（3）The identifiable assets and liabilities of the purchased party on the purchase date
| Item | Guangdong Licheng Company | |
| Fair value on purchase date | Book value on purchase date | |
| Net assets acquired from merger | - | - |
3、Other Changes in the Scope of Consolidation
(1) On April 24, 2023, this group established Guangxi CSG Mining Co., Ltd. (hereinafter referred to as"Guangxi Mining Company"). As of December 31, 2023, this group has contributed RMB 50 million,holding 100% of its shares.
(2) On April 26, 2023, this group established CSG Japan Co., Ltd. (hereinafter referred to as "CSG Japan").As of December 31, 2023, this group has contributed 6 million Japanese yen, holding 100% of its shares.
(3) On May 19, 2023, this group established Wuxuan Nanxin Mining Co., Ltd. (hereinafter referred to as
"Wuxuan Mining Company"). As of December 31, 2023, this group has contributed RMB 6 million, holding60% of its shares.
(4) On October 18, 2023, this group established Qinghai CSG Photovoltaic Technology Co., Ltd.(hereinafter referred to as "Qinghai Photovoltaic Company"). As of December 31, 2023, this group hasnot contributed funds, holding 100% of its shares.
(5) On December 8, 2023, this group established Jiangyou City CSG Quartz Sand Co., Ltd. (hereinafterreferred to as "Jiangyou Quartz Company"). As of December 31, 2023, this group has not contributedfunds, holding 100% of its shares.VIII. Government grants
1、Government subsidies included in deferred income
（1）Government subsidies included in deferred income are subsequently measured using the grossmethod.
| Item | 1 January 2023 | New subsidy amount for this period | The amount carried forward and included in profit and loss in the current period | Other changes | 31 December 2023 | Presentation items carried forward and included in profit and loss in the current period | Asset related/income related |
| Group Talent Fund Project | 171,000,000 | 171,000,000 | related to income | ||||
| Other subsidy projects | 278,875,380 | 30,690,950 | 50,422,500 | 259,143,830 | Other income | Related to assets/income | |
| Total | 449,875,380 | 30,690,950 | 50,422,500 | - | 430,143,830 |
2、Government subsidies included in current profits and losses using the gross method
| Subsidy item | type | Amount included in profit and loss in the previous period | Amount included in profit and loss for the current period | Items presented in profit or loss | Asset related/income related |
| Government gtant | Financial allocation | 71,241,833 | 66,216,291 | Other income | Related to income |
3、Government subsidies using the net method to offset related costs
| Subsidy item | type | The amount of relevant costs | The amount of relevant costs | Items for presentation of | Asset related/income |
| offset in the previous period | offset in the current period | write-down related costs | related | ||
| Fiscal interest discount | Financial allocation | 2,125,915 | 3,711,633 | Financial expenses | Related to income |
IX. Financial Instrument Risk ManagementThe Group's main financial instruments include monetary funds, notes receivable, accounts receivable,receivable financing, other receivables, non-current assets due within one year, other current assets,notes payable, accounts payable, Other payables, short-term borrowings, trading financial liabilities, non-current liabilities due within one year, long-term borrowings, bonds payable , lease liabilities and long-term payables. Details of each financial instrument have been disclosed in the relevant notes. The risksassociated with these financial instruments and the risk management policies adopted by the Group tomitigate these risks are described below. The management of the Group manages and monitors theserisk exposures to ensure that the above risks are controlled within limited limits.
1、Risk management objectives and policies
The main risks caused by the Group's financial instruments are credit risk, liquidity risk, and market risk(including exchange rate risk, interest rate risk, and commodity price risk).The Group's overall risk management plan addresses the unpredictability of financial markets and strivesto reduce potential adverse effects on the Group's financial performance.The Group has formulated risk management policies to identify and analyze the risks faced by the Group,set appropriate risk acceptance levels and design corresponding internal control procedures to monitorthe Group's risk levels. The Group will regularly reassess these risk management policies and relatedinternal control systems to adapt to changes in market conditions or the Group's operating activities. Theinternal audit department also regularly and irregularly checks whether the implementation of the internalcontrol system complies with the risk management policy.The Board of Directors is responsible for planning and establishing the Group's risk management structure,formulating the Group's risk management policies and relevant guidelines, and supervising theimplementation of risk management measures. The Group has formulated risk management policies toidentify and analyze the risks faced by the Group. These risk management policies clearly define specificrisks and cover many aspects such as market risk, credit risk and liquidity risk management. The Groupregularly assesses changes in the market environment and the Group's operating activities to determinewhether to update risk management policies and systems. The Group's risk management is carried outby relevant departments in accordance with policies approved by the Board of Directors. Thesedepartments identify, evaluate and avoid relevant risks through close cooperation with other businessdepartments of the Group.The Group diversifies financial instrument risks through appropriate diversification of investments andbusiness portfolios, and reduces risks concentrated in a single industry, specific region or specificcounterparty by formulating corresponding risk management policies.
（1）Credit risk
Credit risk refers to the risk that the counterparty fails to perform its contractual obligations, resulting infinancial losses to the Group.The Group manages credit risks by portfolio classification. Credit risk mainly arises from bank deposits,bills receivable, accounts receivable, other receivables, etc.The Group's bank deposits are mainly deposited in state-owned banks and other large and medium-sizedlisted banks. The Group expects that there will be no significant credit risk in bank deposits.For notes receivable, accounts receivable, other receivables and long-term receivables, the Group setsrelevant policies to control credit risk exposure. The Group evaluates the customer's credit qualificationsand sets corresponding credit periods based on the customer's financial status, credit history and otherfactors such as current market conditions. The Group will regularly monitor customer credit records. Forcustomers with poor credit records, the Group will use written reminders, shorten the credit period orcancel the credit period to ensure that the Group's overall credit risk is within a controllable range. .The debtors of the Group's accounts receivable are customers located in different industries and regions.The Group continues to conduct credit assessments on the financial status of accounts receivable andpurchases credit guarantee insurance when appropriate.The Group's maximum exposure to credit risk is the carrying amount of each financial asset on thebalance sheet. The Group does not provide any other guarantees that may expose the Group to creditrisk. Among the Group's accounts receivable, those from the top five customers(mainly photovoltaic glasscustomers) accounted for 39% of the Group's total accounts receivable (2022: 34%).These customersare all industry leaders with good credit, thus reducing the risk of accounts receivable recovery for thisgroup. Among the Group's other receivables, those from the top five companies in terms of arrears Otherreceivables account for 87% of the Group's total other receivables (2022: 87%).
（2）Liquidity risk
Liquidity risk refers to the risk that the Group encounters a shortage of funds when fulfilling its obligationsto settle by delivering cash or other financial assets.When managing liquidity risk, the Group maintains and monitors cash and cash equivalents thatmanagement considers sufficient to meet the Group's operating needs and reduce the impact of cashflow fluctuations. The management of the Group monitors the use of bank borrowings and ensurescompliance with borrowing agreements. At the same time, obtain commitments from major financialinstitutions to provide sufficient backup funds to meet short-term and long-term funding needs.At the end of the period, the financial liabilities and off-balance sheet guarantee items held by the Groupare analyzed based on the maturity period of the undiscounted remaining contract cash flows as follows(unit: yuan):
| Item | 31 December 2023 |
| Within a year | one to two years | two to five years | More than five years | Total | |
| Financial liabilities: | |||||
| Short-term loan | 442,145,185 | - | - | - | 442,145,185 |
| Notes payable | 2,041,353,189 | - | - | - | 2,041,353,189 |
| Accounts payable | 3,341,624,602 | - | - | - | 3,341,624,602 |
| Other payables | 484,741,877 | - | - | - | 484,741,877 |
| Non-current liabilities due within one year | 1,271,501,008 | - | - | - | 1,271,501,008 |
| Other current liabilities | 454,332,686 | - | - | - | 454,332,686 |
| Long term loan | 214,670,100 | 1,941,153,526 | 3,246,286,160 | 1,584,820,574 | 6,986,930,360 |
| Lease liability | 1,128,760 | 3,705,792 | 10,300,010 | 15,134,562 | |
| Long-term payables | - | 42,003,985 | 46,200,178 | - | 88,204,163 |
| Total financial liabilities and contingent liabilities | 8,250,368,647 | 1,984,286,271 | 3,296,192,130 | 1,595,120,584 | 15,125,967,632 |
At the end of last year , the financial liabilities and off-balance sheet guarantee items held by the Groupwere analyzed based on the maturity period of the undiscounted remaining contract cash flows as follows(unit: yuan):
| Item | Balance at the end of the previous year | ||||
| Within a year | one to two years | two to five years | More than five years | Total | |
| Financial liabilities: | |||||
| Short-term loan | 350,149,308 | - | - | - | 350,149,308 |
| Notes payable | 994,557,496 | - | - | - | 994,557,496 |
| Accounts payable | 2,033,542,627 | - | - | - | 2,033,542,627 |
| Other payables | 537,065,184 | - | - | - | 537,065,184 |
| Other current liabilities | 50,407,240 | - | - | - | 50,407,240 |
| Non-current liabilities due within one year | 2,493,836,975 | - | - | - | 2,493,836,975 |
| Long-term payables | - | 40,906,147 | 88,330,731 | - | 129,236,878 |
| Long term loan | 159,922,694 | 1,158,108,565 | 2,569,845,854 | 1,040,196,665 | 4,928,073,778 |
| Total financial liabilities and contingent liabilities | 6,619,481,524 | 1,199,014,712 | 2,658,176,585 | 1,040,196,665 | 11,516,869,486 |
The amounts of financial liabilities disclosed in the table above represent undiscounted contractual cashflows and therefore may differ from the carrying amounts in the balance sheet.
（3）Market risk
Market risk of financial instruments refers to the risk that the fair value or future cash flows of financialinstruments fluctuate due to market price changes, including interest rate risk, exchange rate risk andother price risks.
Interest Rate RiskInterest rate risk refers to the risk that the fair value or future cash flows of financial instruments willfluctuate due to changes in market interest rates. Interest rate risk can arise from both recognized interest-bearing financial instruments and unrecognized financial instruments (such as certain loan commitments).The Group's interest rate risk mainly arises from long-term interest-bearing debt such as long-term bankborrowings and bonds payable. Financial liabilities with floating interest rates expose the Group to cashflow interest rate risk, while financial liabilities with fixed interest rates expose the Group to fair valueinterest rate risk. The Group determines the relative proportions of fixed-rate and floating-rate contractsbased on the prevailing market environment, and maintains an appropriate mix of fixed-rate and floating-rate instruments through regular review and monitoring.The Group pays close attention to the impact of interest rate changes on the Group's interest rate risk.The Group currently does not adopt an interest rate hedging policy. However, management is responsiblefor monitoring interest rate risk and will consider hedging significant interest rate risk if necessary. Anincrease in interest rates will increase the cost of new interest-bearing debt and the interest expense ofthe Group's unpaid interest-bearing debt with floating interest rates, and will have a significant adverseimpact on the Group's financial results. The management will base on the latest market trendsAdjustments are made in a timely manner to the situation, and these adjustments may be through interestrate swap arrangements to reduce interest rate risk.The interest-bearing financial instruments held by the Group are as follows (unit: yuan):
| Item | 31 December 2023 | 31 December 2022 |
| Fixed rate contract | 1,123,875,582 | 487,260,925 |
| Floating rate contract | 5,097,773,094 | 3,866,329,055 |
| Total | 6,221,648,676 | 4,353,589,980 |
For financial instruments held on the balance sheet date that expose the Group to fair value interest raterisk, the impact on net profit and shareholders' equity in the above sensitivity analysis is based on theassumption that interest rates change on the balance sheet date. The impact of remeasurement offinancial instruments. For floating rate non-derivative instruments held on the balance sheet date thatexpose the Group to cash flow interest rate risk, the impact on net profit and shareholders' equity in theabove sensitivity analysis is the impact of the above interest rate changes on the annual estimated interestexpense or income. Impact. The previous year's analysis was based on the same assumptions andmethodology.Exchange rate riskExchange rate risk refers to the risk that the fair value or future cash flows of financial instruments willfluctuate due to changes in foreign exchange rates. Exchange rate risk can arise from financialinstruments denominated in foreign currencies other than the functional currency of accounting.Exchange rate risk is mainly due to the impact of the Group's financial position and cash flows on foreignexchange rate fluctuations. Except for the subsidiaries established in Hong Kong that hold assets settledin Hong Kong dollars, the proportion of foreign currency assets and liabilities held by the Group to the
overall assets and liabilities is not significant. Therefore, the Group believes that the exchange rate risk itfaces is not significant.At the end of the period , the amounts of foreign currency financial assets and foreign currency financialliabilities held by the Group converted into RMB are listed as follows (unit: RMB ) :
| Item | Foreign currency liabilities | Foreign currency assets | ||
| 31 December 2023 | 31 December 2022 | 31 December 2023 | 31 December 2022 | |
| Dollar | 26,941,200 | 28,189,789 | 297,351,920 | 160,036,914 |
| Hong Kong dollar | 54,917 | 234,966 | 15,309,673 | 8,248,133 |
| Others | 1,642,375 | 4,483,784 | 7,102,354 | 6,409,553 |
| Total | 28,638,492 | 32,908,539 | 319,763,947 | 174,694,600 |
The Group pays close attention to the impact of exchange rate changes on the Group's exchange raterisk. Management is responsible for monitoring exchange rate risk and will consider hedging significantexchange rate risk if necessary.As of December 31, 2023, for the Group's various U.S. dollar financial assets and U.S. dollar financialliabilities, if the RMB appreciates or depreciates by 10% against the U.S. dollar and other factors remainunchanged, the Group's net profit will decrease or increase by approximately RMB 22,984,911.(December 31, 2022: decrease or increase of approximately RMB 11,207,006).
2、Capital management
The goal of the Group's capital management policy is to ensure that the Group can continue to operate,thereby providing returns to shareholders and benefiting other stakeholders, while maintaining an optimalcapital structure to reduce capital costs.In order to maintain or adjust the capital structure, the Group may adjust financing methods, adjust theamount of dividends paid to shareholders, return capital to shareholders, issue new shares and otherequity instruments, or sell assets to reduce debt.The Group monitors the capital structure based on the asset-liability ratio (i.e., total liabilities divided bytotal assets). At the end of the period, the Group's asset-liability ratio was 52% (end of the previous year :
48%).X. Fair valueAccording to the lowest level input value that is of great significance to the overall measurement in fairvalue measurement, the fair value hierarchy can be divided into:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2: The use of observable inputs other than quoted market prices for the asset or liability in Level1, either directly (i.e., as prices) or indirectly (i.e., as derived from prices).Level 3: The asset or liability uses any input value that is not based on observable market data(unobservable input value).
（1）Items and amounts measured at fair value
At the end of the period, assets and liabilities measured at fair value are listed as follows according tothe above three levels:
| Item | Level 1 fair value measurement | Level 2 fair value measurement | Level 3 fair value measurement | Total |
| 1. Continuous fair value measurement | ||||
| (1) Accounts receivable financing | - | - | 529,945,623 | 529,945,623 |
| (2) Investment real estate | 290,368,105 | 290,368,105 |
During the year, there was no conversion between Level 1 and Level 2 in the fair value measurement ofthe Group's financial assets and financial liabilities, nor was there any transfer into or out of Level 3.For financial instruments traded in active markets, the Group determines its fair value based on activemarket quotes; for financial instruments not traded in active markets, the Group uses valuationtechniques to determine its fair value. The valuation models used are mainly discounted cash flowmodels and market comparable company models. The input values of valuation technology mainlyinclude risk-free interest rates, benchmark interest rates, exchange rates, credit spreads, liquiditypremiums, lack of liquidity discounts, etc.
（2）Information related to Level 2 fair value measurement
| Content | Closing fair value | Valuation techniques | Input value |
| Investment real estate: | |||
| Industrial, commercial, residential, office real estate | 290,368,105 | Demarcated land value method | Building area of real estate for various purposes, market unit price of real estate for various purposes |
（3）Quantitative information on significant unobservable inputs used in Level 3 fair value
measurements
| Content | Closing fair value | Valuation techniques | unobservable input value | Range (weighted average) |
| Equity instrument investment: | ||||
| Receivables Financing | 529,945,623 | Income approach (option pricing | Volatility Counterparty Credit Risk Own Credit | 0%-2% |
| model) | Risk |
XI. Related parties and related transactions
1、Information about the parent company of the Group
The Group has no parent company.The Group has no ultimate actual controlling party
2、Information about the Group’s subsidiaries
For details of subsidiaries, please see Note.
3、Information on the Group’s joint ventures and associates
The Group has no joint ventures or associates.
4、Other related parties information
| Name of Other Related Party | Relationship with the Group |
| Qianhai Life Insurance Co., Ltd. | The largest shareholder of the company |
| Shantou Chaoshang Urban Comprehensive Management Co., Ltd | concerted action |
| Shenzhen City Special Construction Engineering Co., Ltd. | concerted action |
| Shenzhen Hongtu Construction Co., Ltd. | concerted action |
| Shen Zhen Golden Flourish Supply Chain Limited | concerted action |
| Shenzhen Baoneng Auto Sales & Service Co., Ltd. | concerted action |
5、Related party transactions
（1）Purchase and sales of goods and rendering and receiving services
1 Purchasing goods and receiving services
| Related party | Related transaction content | 2023 | 2022 |
| Qianhai Life Insurance Co., Ltd. | Receive service | 7,471,481 | 7,272,709 |
| Other related parties | Purchase goods and receive services | 194,206 | |
| Total | 7,471,481 | 7,466,915 |
Note: The Group conducts commodity transactions with related parties based on market prices.2 Selling goods and providing services
| Related party | Related transaction | 2023 | 2022 |
| Shantou Chaoshang Urban Comprehensive Management Co., Ltd | Sales of goods | 599,745 | 1,397,807 |
| Shenzhen City Special Construction Engineering Co., Ltd. | Sales of goods | 3,502,191 | - |
| Other related parties | Sales of goods | 424,523 | 60,280 |
| Total | 4,526,459 | 1,458,087 |
Note: The Group conducts commodity transactions with related parties based on market prices.
（2）Key management personnel compensation
| Item | 2023 | 2022 |
| Remuneration | 18,280,500 | 25,776,400 |
6、Accounts receivable and payable from related parties
（1）Amounts receivable from related parties
| Item | Related party | 31 December 2023 | 31 December 2022 | ||
| Carrying Amount | Provision for bad debts | Carrying Amount | Provision for bad debts | ||
| Accounts receivable | Shenzhen Hongtu Construction Co., Ltd. | 8,652,356 | 7,382,793 | ||
| Accounts receivable | Shen Zhen Golden Flourish Supply Chain Limited | 22,090 | 20,986 | ||
| Prepayments | Qianhai Life Insurance Co., Ltd. | 4,441 | 572,995 | ||
| Other receivables | Other related parties | 36,000 | 720 | ||
| Total | 8,678,887 | 7,403,779 | 608,995 | 720 | |
（2）Amounts payable to related parties
| Item | Related party | 31 December 2023 | 31 December 2022 |
| Accounts payable | Suzhou Baoqi Logistics Co., Ltd | 314,667 | 314,667 |
| Other payables | Qianhai Life Insurance Co., Ltd. | 386,589 | 6,647 |
| Contract liabilities | Other related parties | 504,538 | 319,642 |
| Total | 1,205,794 | 640,956 |
XII. COMMITMENTS AND CONTINGENCIESs
1、Significant commitments
（1）Capital commitments
| Capital commitments that have been contracted but not yet recognized in the financial statements | 31 December 2023 | 31 December 2022 |
| Commitment to purchase and construct long-term assets | 3,010,778,541 | 3,060,099,197 |
（2）Other commitments
As of December 31, 2023, the Group has no other commitments that should be disclosed.
2、Contingencies
（1）Contingent liabilities arising from pending litigation and arbitration and their financial impact
| Plaintiff | Defendant | Cause of action | Court of acceptance | Target amount | Case progress |
| Our company (Note 1) | Zeng Nan, Luo Youming, Wu Guobin, Ding Jiuru, Li Weinan , Yichang Hongtai Real Estate Co., Ltd. | Disputes over liability for harming company interests | Shenzhen Intermediate People's Hospital | 229,200,087 | Under trial |
| Fengyang Wenyang Building and Decoration Materials Co., Ltd. (Note 2) | Anhui CSG New Energy Materials Technology Co., Ltd. | Disputes over creditor's subrogation rights | Fengyang County People's Court | 17,349,467 | Under trial |
171 million yuan in subsidy funds given to the group by the plaintiff government and the loss of interestof 58.2 million yuan. As of the announcement date of this report, the case is under trial.
Note 2: The plaintiff sued Anhui New Energy for subrogation to bear the delayed payment and interest onthe grounds that the concrete from Hefei Construction Materials and Equipment Co., Ltd. was used in thecivil construction project of the defendant Anhui New Energy. As of the announcement date of this report,the case is under trial. The Company has confirmed all accounts payable with relevant paymentobligations.XIII. Post-balance sheet events
1、Profit distribution after the balance sheet date
| Profit or dividend to be distributed | Annual cash dividend of RMB 2.5 per 10 shares |
| Profits or dividends declared and distributed upon review and approval | 767,673,027 |
Note: The above profit distribution plan has been reviewed and approved by the company's board ofdirectors and still needs to be submitted to the company's shareholders' meeting for approval.XIV. Notes on main items of the parent company’s financial statements
1、Accounts receivable
（1）Disclosure by age
| Aging | 31 December 2023 | 31 December 2022 |
| Within 1 year | 240,038,959 | 24,484,628 |
| Less: provision for bad debts | - | 489,692 |
| Total | 240,038,959 | 23,994,936 |
（2）Classified disclosure according to bad debt accrual method
| Category | 31 December 2023 | ||||
| Carrying Amount | Provision for bad debts | Book value | |||
| Amount | Proportion(%) | Amount | Expected credit loss rate (%) | ||
| Provision for bad debts on a portfolio basis | 240,038,959 | 100 | - | - | 240,038,959 |
Continued:
| Category | 31 December 2022 | ||||||||
| Carrying Amount | Provision for bad debts | Book value | |||||||
| Amount | Proportion(%) | Amount | Expected credit loss rate (%) | ||||||
| Provision for bad debts on a portfolio basis | 24,484,628 | 100 | 489,692 | 2 | 23,994,936 | ||||
| Item | 31 December 2023 | 31 December 2022 | |||||||
| Dividends receivable | 126,870,800 | 375,057,800 | |||||||
| Other receivables | 2,030,231,679 | 1,994,373,982 | |||||||
| Total | 2,157,102,479 | 2,369,431,782 | |||||||
2、Other receivables
（1）Dividends receivable
| Item (or invested unit) | 31 December 2023 | 31 December 2022 |
| Dividends receivable from subsidiaries | 126,870,800 | 375,057,800 |
| Total | 126,870,800 | 375,057,800 |
（2）Other receivables
4 Disclosure by age
| Aging | 31 December 2023 | 31 December 2022 |
| Within 1 year (including 1 year) | 1,753,727,543 | 1,874,539,007 |
| 1 to 2 years | 156,829,201 | 36,000 |
| 2 to 3 years | 36,000 | - |
| Over 3 years | 171,057,770 | 171,181,656 |
| Total | 2,081,650,514 | 2,045,756,663 |
| Provision for bad debts | 51,418,835 | 51,382,681 |
| Total | 2,030,231,679 | 1,994,373,982 |
5 Disclosure by nature of payment
| Item | 31 December 2023 | 31 December 2022 | ||||
| Carrying Amount | Provision for bad debts | Book value | Carrying Amount | Provision for bad debts | Book value | |
| Amounts receivable | 1,908,899,993 | - | 1,908,899,993 | 1,870,622,635 | - | 1,870,622,635 |
| from related parties | ||||||
| Others | 172,750,521 | 51,418,835 | 121,331,686 | 175,134,028 | 51,382,681 | 123,751,347 |
| Total | 2,081,650,514 | 51,418,835 | 2,030,231,679 | 2,045,756,663 | 51,382,681 | 1,994,373,982 |
6 Bad debt provisions accrued, recovered or reversed in the current period
| Provision for bad debts | Stage 1 | Stage 2 | Stage 3 | Total |
| Expected credit losses over the next 12 months | Expected credit losses throughout the entire duration (no credit impairment has occurred) | Expected credit losses throughout the lifetime (credit impairment has occurred) | ||
| Amount on 1st January 2023 | 82,681 | 51,300,000 | 51,382,681 | |
| that in this period: | ||||
| Accrual in the current year | 36,154 | 36,154 | ||
| Amount on 31st December 2023 | 118,835 | 51,300,000 | 51,418,835 |
7 The top five companies with closing balances of other receivables collected by debtors
| Company name | Nature of payment | Other receivables | Aging | Proportion to the total closing balance of other receivables (%) | Provision for bad debts |
| 31 December 2023 | 31 December 2023 | ||||
| Company A | Advance payment | 544,019,156 | Within 1 year | 26 | |
| Company B | Advance payment | 246,498,101 | Within 1 year | 12 | |
| Company C | Other | 171,000,000 | More than 5 years | 8 | 51,300,000 |
| Company D | Advance payment | 147,173,182 | Within 1 year | 7 | |
| Company E | Advance payment | 146,072,111 | Within 2 years | 7 | |
| Total | 1,254,762,550 | 60 | 51,300,000 |
3、Long-term equity investments
| Item | 31 December 2023 | 31 December 2022 | ||||
| amount | impairment | Book value | amount | impairment | Book value | |
| Investment in subsidiaries | 9,821,533,769 | 15,000,000 | 9,806,533,769 | 7,853,487,027 | 15,000,000 | 7,838,487,027 |
| Total | 9,821,533,769 | 15,000,000 | 9,806,533,769 | 7,853,487,027 | 15,000,000 | 7,838,487,027 |
(1) Investment in subsidiaries
| Investee | 1 January 2023 | Increased in this issue | Decrease in this period | 31 December 2023 | Provision for impairment in the current period | Closing balance of impairment provision |
| Chengdu CSG Company | 151,397,763 | 151,397,763 | ||||
| Sichuan Energy Saving Company | 119,256,949 | 119,256,949 | ||||
| Tianjin Energy Saving Company | 247,833,327 | 247,833,327 | ||||
| Dongguan Engineering Company | 198,276,242 | 24,000,001 | 222,276,243 | |||
| Dongguan Solar Energy Company | 355,120,247 | 355,120,247 | ||||
| Dongguan Photovoltaic Company | 382,112,183 | 50,000,000 | 432,112,183 | |||
| Yichang Silicon Materials Company | 909,960,170 | 909,960,170 | ||||
| Wujiang Engineering Company | 254,401,190 | 254,401,190 | ||||
| Hebei CSG Company | 266,189,705 | 266,189,705 | ||||
| CSG (Hong Kong) Co., Ltd. | 87,767,304 | 87,767,304 | ||||
| Wujiang CSG Company | 567,645,430 | 567,645,430 | ||||
| Jiangyou CSG Mining Development Co., Ltd. | 102,415,096 | 102,415,096 | ||||
| Xianning Float Co., Ltd. | 181,116,277 | 181,116,277 | ||||
| Xianning Energy Saving Company | 165,452,035 | 165,452,035 | ||||
| Qingyuan Energy Saving Company | 885,273,105 | 885,273,105 | ||||
| Shenzhen CSG Financial Leasing Co., Ltd. | 133,500,000 | 133,500,000 | ||||
| Shenzhen Display Device Company | 550,765,474 | 550,765,474 | ||||
| Zhaoqing Energy Saving Company | 150,000,000 | 50,000,000 | 200,000,000 | |||
| Zhaoqing CSG Automotive Glass Co., Ltd. | 116,047,333 | 43,911,741 | 159,959,074 | |||
| Anhui New Energy Company | 1,300,000,000 | 250,000,000 | 1,550,000,000 | |||
| Anhui Quartz Company | 75,000,000 | 75,000,000 | ||||
| Anhui CSG Silicon Valley Mingdu Mining Development Co., Ltd. | 120,000,000 | 96,000,000 | 216,000,000 | |||
| Xi'an Energy Saving Company | 41,365,000 | 41,135,000 | 82,500,000 | |||
| Guangxi New Energy Materials Company | 57,000,000 | 170,000,000 | 227,000,000 |
| CSG (Suzhou) Corporate Headquarters Management Co., Ltd. | 30,000,000 | 30,000,000 | ||||
| Shenzhen CSG Quartz Materials Industrial Co., Ltd. | 3,000,000 | 37,000,000 | 40,000,000 | |||
| Shenzhen CSG New Energy Industry Development Co., Ltd. | 120,000,000 | 1,230,000,000 | 1,350,000,000 | |||
| Others | 267,592,197 | 1 | 24,000,001 | 243,592,197 | 15,000,000 | |
| Total | 7,838,487,027 | 1,992,046,743 | 24,000,001 | 9,806,533,769 | - | 15,000,000 |
4、Operating income and operating costs
| Item | 2023 | 2022 | ||
| Revenue | Cost | Revenue | Cost | |
| Principal operation | 2,599,280 | - | 2,232,800 | - |
| Other operations | 396,903,690 | - | 371,474,846 | - |
| Total | 399,502,970 | - | 373,707,646 | - |
5、Investment income
| Item | 2023 | 2022 |
| 1,680,533,152 | 841,070,857 | |
| Investment income during the holding period of financial assets at fair value | - | 27,665,396 |
| Others | 3,106,870 | 3,902,458 |
| Total | 1,683,640,022 | 872,638,711 |
XV. Other important matters
1、Segment reporting
Based on the Group's internal organizational structure, management requirements and internal reporting system, the Group's operating business is divided intofour reporting segments. These reporting segments are determined based on the financial information required by the company for daily internal management.The Group's management regularly evaluates the operating results of these reportable segments to determine the allocation of resources to them and evaluatetheir performance.The Group's reportable segments include:
-The Glass Division is responsible for the production and sales of float glass, photovoltaic glass products, engineering glass products, and silica sand required forthe production of related glass.-The Electronic Glass and Display device Division is responsible for the production and sales of display components and special ultra-thin glass products.-The Solar Energy and Others segment is responsible for the production and sales of polysilicon and solar cell module products, photovoltaic energy developmentand other products.-Other unallocated divisions.Segment reporting information is disclosed based on the accounting policies and measurement standards adopted by each segment when reporting tomanagement. These accounting policies and measurement basis are consistent with those used when preparing financial statements.
（1）Segment profit or loss, assets and liabilities
| This period or the end of this period | Glass industry | Electronic glass and display device | Solar energy and other industries | Unallocated amount | Inter-segment elimination | Total |
| External transaction income | 14,571,967,724 | 1,439,212,230 | 2,180,787,397 | 2,897,015 | 18,194,864,366 | |
| Inter-segment transaction income | 113,589,560 | 133,430,006 | 67,534,255 | 397,276,839 | - 711,830,660 | |
| Interest expense | 124,392,065 | 6,449,011 | 2,251,713 | 95,066,849 | 228,159,638 | |
| Depreciation and amortization | 858,676,426 | 241,304,733 | 131,434,481 | 22,534,741 | 1,253,950,381 | |
| The total profit | 1,536,505,236 | - 259,703,377 | 292,873,265 | 62,520,809 | 1,632,195,933 | |
| Total assets | 17,879,556,268 | 3,271,543,296 | 6,244,315,346 | 2,966,642,402 | 30,362,057,312 | |
| Total liabilities | 9,739,294,245 | 694,438,760 | 2,275,626,502 | 3,115,991,636 | 15,825,351,143 | |
| Increase in non-current assets | 3,356,547,127 | 93,647,705 | 2,854,803,508 | 8,622,636 | 6,313,620,976 |
| Last period or last period end | Glass industry | Electronic glass and display device | Solar energy and other industries | Unallocated amount | Inter-segment elimination | Total |
| External transaction income | 9,894,002,863 | 1,470,587,932 | 3,831,603,860 | 2,512,343 | 15,198,706,998 | |
| Inter-segment transaction income | 162,736,393 | 172,495,899 | 56,978,902 | 371,837,218 | -764,048,412 | - |
| Interest expense | 26,741,659 | 7,271,418 | 383,249 | 178,327,937 | 212,724,263 | |
| Depreciation and amortization | 613,677,200 | 230,804,196 | 150,003,099 | 6,667,747 | 1,001,152,242 | |
| The total profit | 1,162,517,806 | 185,946,481 | 1,072,267,930 | -141,857,270 | 2,278,874,947 |
| Total assets | 14,816,107,672 | 3,657,683,773 | 3,839,214,143 | 3,591,007,718 | 25,904,013,306 | |
| Total liabilities | 6,870,531,882 | 700,657,854 | 554,483,116 | 4,402,669,151 | 12,528,342,003 | |
| Increase in non-current assets | 3,377,508,584 | 309,339,498 | 307,531,029 | 8,374,505 | 4,002,753,616 |
XVI. Additional materials
1、Detailed statement of non-recurring profits and losses for the current period
| Item | Amount incurred this period | Illustrate |
| Gains and losses on disposal of non-current assets, including the write-off portion of asset impairment provisions | -9,628,136 | |
| Government subsidies included in the current profit and loss, except for government subsidies that are closely related to the company's normal business operations, comply with national policies and regulations, are enjoyed in accordance with determined standards, and have a lasting impact on the company's profits and losses. | 118,358,356 | |
| In addition to the effective hedging business related to the company's normal operating business , non-financial enterprises' gains and losses from changes in fair value arising from holding financial assets and financial liabilities and gains and losses arising from the disposal of financial assets and financial liabilities | 3,106,870 | |
| Reversal of impairment provision for accounts receivable that has been individually tested for impairment | 8,757,040 | |
| Debt restructuring gains and losses | 4,908,612 | |
| Other non-operating income and expenses other than the above | 18,833,212 | |
| Total non-recurring gains and losses | 144,335,954 | |
| Less: Income tax impact on non-recurring gains and losses | 21,244,208 | |
| Net non-recurring gains and losses | 123,091,746 | |
| Less: Net impact of non-recurring gains and losses attributable to minority shareholders (after tax) | 3,336,083 | |
| Non-recurring gains and losses attributable to the company’s ordinary shareholders | 119,755,663 |
2、ROE and earnings per share
| Profit during the reporting period | Weighted average return on equity % | Earnings per share | |
| Basic earnings per share | Diluted earnings per share | ||
| Net profit attributable to the company’s ordinary shareholders | 12.30 | 0.54 | 0.54 |
| Net profit attributable to the company's ordinary shareholders after deducting non-recurring gains and losses | 11.41 | 0.50 | 0.50 |
Board of Directors ofCSG Holding Co., Ltd.26 April 2024