CSG HOLDING CO., LTD.
SEMI-ANNUAL REPORT 2014
Chairman of the Board:
ZENG NAN
August 2014
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
Section I Important Notice, Contents and Paraphrase
Board of Directors and the Supervisory Committee of CSG Holding Co., Ltd. (hereinafter referred
to as the Company) and its directors, supervisors and senior executives hereby confirm that there
are no any fictitious statements, misleading statements, or important omissions carried in this report,
and shall take all responsibilities, individual and/or joint, for the reality, accuracy and completion of
the whole contents.
Except for the follow directors, others are present the meeting of the Board for deliberating the
semi-annual report of the Company in person.
Name of director absent Position Reason for absence Name of authorized director
Yan Ganggang Director On business Chen Chao
The Company has no plans of cash dividend distribution, bonus shares being sent and converting
capital reserve into share capital.
Mr. Zeng Nan, Chairman of the Board, CFO Mr. Luo Youming and principle of the financial
department Mr. Zhang Guoming confirm that the Financial Report enclosed in this Semi-annual
Report is true and complete.
Regarding to the forward-looking statements with future planning involved in the Report, they do
not constitute a substantial commitment for investors. Investors are advised to exercise caution of
investment risks.
This report is prepared both in Chinese and English. Should there be any inconsistency between the
Chinese and English versions, the Chinese version shall prevail.
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
Contents
Section I Important Notice, Contents and Paraphrase .............................................. 1
Section II Company profile ..................................................................................... 4
Section III Accounting data and summary of financial indexes ............................... 6
Section IV Report of the Board of Directors............................................................ 8
Section V Important Events ................................................................................... 19
Section VI. Changes in Shares and Particulars about Shareholders ....................... 25
Section VII. Particulars about Directors, Supervisors and Senior Executives ........ 29
Section VIII . Financial Report ................................................................................. 30
Section IX. Documents available for Reference ..................................................... 110
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
Paraphrase
Items Refers to Contents
Company, the Company, SG or the Group Refers to CSG Holding Co., Ltd.
Ultra-thin electronic glass Refers to The electronic glass with thickness between 0.1~1.1mm
Second-generation energy-saving glass Refers to Double silver coated glass
Third-generation energy-saving glass Refers to Triple Silver coated glass
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
Section II Company profile
I. Company information
Short form for share Southern Glass A、Southern Glass B Code for share 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 Zeng Nan
II. Person/Way to contact
Secretary of the Board Rep. of security affairs
Name Zhou Hong Li Tao
CSG Building, No.1 of the 6th Industrial Road, CSG Building, No.1 of the 6th Industrial Road,
Contacts add.
Shekou, Shenzhen, P. R.C. Shekou, Shenzhen, P. R.C.
Tel. (86)755-26860666 (86)755-26860666
Fax. (86)755-26692755 (86)755-26692755
E-mail securities@csgholding.com securities@csgholding.com
III. Other information
1. Way of contact
Whether registrations address, offices address and post code as well as website and email of the Company changed in reporting
period or not
□ Applicable √Not applicable
Registrations address, offices address and post code as well as website and email of the Company have no change in reporting period,
found more details in Annual Report 2013.
2. Information disclosure and preparation place
Whether information disclosure and preparation place changed in reporting period or not
□ Applicable √ Not applicable
The newspaper appointed for information disclosure, website for semi-annual report publish appointed by CSRC and preparation
place for semi-annual report have no change in reporting period, found more details in Annual Report 2013.
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
3. Registration changes of the Company
Whether registration has changed in reporting period or not
□ Applicable √ Not applicable
Date/place for registration of the Company, registration number for enterprise legal license, number of taxation registration and
organization code have no change in reporting period, found more details in Annual Report 2013.
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
Section III Accounting data and summary of financial indexes
I. Main accounting data and financial indexes
Whether it has retroactive adjustment or re-statement on previous accounting data for accounting policy changed and accounting
error correction or not
□Yes √ No
The report period The same period Increase/decrease in this
(Jan. to Jun.2014) of last year report period year-on-year (%)
Operating income (RMB) 3,262,681,672 3,536,965,783 -7.75%
Net profit attributable to shareholders of the listed
589,210,439 353,719,746 66.58%
company(RMB)
Net profit attributable to shareholders of the listed company
242,934,925 323,142,979 -24.82%
after deducting non-recurring gains and losses(RMB)
Net cash flow arising from operating activities(RMB) 580,928,207 707,258,712 -17.86%
Basic earnings per share (RMB/Share) 0.28 0.17 64.71%
Diluted earnings per share (RMB/Share) 0.28 0.17 64.71%
Weighted average ROE (%) 7.38% 5.10% 2.28%
Increase/decrease in this
End of this period End of last year period-end over same period of
last year-end (%)
Total assets (RMB) 14,796,960,553 15,078,866,777 -1.87%
Net assets attributable to shareholder of listed company
8,019,143,515 8,047,894,139 -0.36%
(RMB)
II. Items and amounts of extraordinary profit (gains)/loss
√Applicable □ Not applicable
Unit: RMB
Item Amount Note
Gains/losses from the disposal of non-current asset (including the write-off that
-826,437
accrued for impairment of assets)
Governmental subsidy reckoned into current gains/losses (not including the subsidy
enjoyed in quota or ration according to national standards, which are closely 44,447,997
relevant to enterprise’s business)
Gains on disposal of available-for-sale financial assets, gains and losses from
change of fair values of held-for-transaction financial assets and financial liabilities 108,000
except for the effective hedge business related to normal business of the Company,
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
and investment income from disposal of transactional financial assets and liabilities
and financial assets available for sale
Other non-operating income and expenditure except for the aforementioned items 12,061,958
Other item that satisfied the definition of non-recurring gains and losses 308,895,397
Less:Impact on income tax 12,081,899
Impact on minority shareholders’ equity (post-tax) 6,329,502
Total 346,275,514 --
Explain reasons for the extraordinary profit (gain)/loss defined by Q&A Announcement No.1 on Information Disclosure for
Companies Offering Their Securities to the Public --- Extraordinary Profit/loss, and the items defined as recurring profit (gain)/loss
according to the lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies
Offering Their Securities to the Public --- Extraordinary Profit/loss.
√Applicable □ Not applicable
Amount involved
Item Reasons
(RMB)
Other item that satisfied the It was mainly due to the Company sold 100% equity of Shenzhen CSG
definition of non-recurring gains 308,895,397 Float Glass Co., Ltd. and the added value amortization of remaining
and losses equity of Shenzhen CSG Display Technology Co., Ltd.
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
Section IV Report of the Board of Directors
I. Introduction
In the first half year of 2014, the global economies still moved forward slowly. The economic recovery was still rough due to lots of
uncertain factors, though the economy of advanced economies headed by America showed a sign of slow recovery. Being influenced
by many factors, such as real estate industry adjustment, structural transformation of economy, insufficient demand as well as over
capacity, relevant industries in China moved downward obviously, and the market environment for entity economies became
extremely severe. Confronting the ups and downs of economic environment, the Company made full use of its own advantages,
responded actively to the adverse impact from market environment. Meanwhile, the Company continued to optimize mechanism of
R&D innovation, enhance construction of R&D system and ability, increase input for R&D, further deepen differentiation strategies
with technological innovation and management innovation, and consolidate the foundation of fine management. In the first half year
of 2014, CSG implemented operating income of RMB 3,263 million and net profit of RMB 589 million (already deducted minority
shareholders profit and loss), a year-on-year growth of 66.58%. After deducting non-recurring gains/losses, CSG gained net profit of
RMB 243 million, among which RMB 64.96 million decreased due to shares of the fine glass held by CSG reduced and the profit of
fine glass industry declined as well.
Affected by adjustment of real estate and over capacity in the first half year of 2014, float glass industry suffered a greater impact.
As the price of float glass keeping downside and the cost of soda ash and gas retaining upside, the pressure on float industry became
more and more intensified and the whole industry was in the state of poor performance. To cope with unfavorable market
environment, flat glass division of the Company continued to reinforce cost control, energy-saving and consumption-reducing, and
greatly promote the manufacture and sales of differentiated goods and high-grade products. In the first half year, flat glass division
achieved revenue of RMB 1,847 million with a year-on-year growth of 3.1%, and profit of RMB 150 million with a slight decline
year-on-year.
In the first half year of 2014, there was a slowdown in market demand of architectural glass due to adjustment of real estate market,
meanwhile, as homogeneous competition intensified, sales and profit of conventional products were affected. Architectural glass
division of the Company maintained stable through strengthening management and proactively promoting the sales of differentiate
goods, such as double-silver and triple-silver products. In the first half year, architectural glass division gained revenue of RMB
1,420 million with a year-on-year growth of 15.64% and net profit of RMB 237 million with a year-on-year growth of 25.95%.
In the first half year of 2014, PV market was still in its slump under double pressure of over capacity and trade protection from
Europe & America. In order to cope with severe market surrounding, the Company conducted a comprehensive transformation of
polysilicon production line in order to greatly lower the production cost and improve the competitiveness of products. Polysilicon
production line has entered the commercial operation so far, and achieved earnings already. In the first half year, PV industry realized
revenue of RMB 405 million with deficit of RMB 2.92 million, and reduced losses of RMB 6.50 million compared with the same
period of last year.
II. Main business analysis
Year-on-year changes of main financial data
Unit: RMB
The current The same term Increase /decrease Reasons of change
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
term of last year year-on-year（%）
Mainly because Shenzhen CSG Display was excluded
Business income 3,262,681,672 3,536,965,783 -7.75% in the consolidation scope of the Group due to part of
the equity was sold at the end of last year
Mainly because Shenzhen CSG Display was excluded
Business cost 2,438,593,004 2,514,678,053 -3.03% in the consolidation scope of the Group due to part of
the equity was sold at the end of last year
Mainly because Shenzhen CSG Display was excluded
in the consolidation scope of the Group due to part of
the equity was sold at the end of last year, more water
Sales expense 114,315,080 127,942,744 -10.65%
transport with lower rates adopted by Dongguan Solar
Energy and travelling expenses from architectural
business division decreased
Mainly because expenses of R&D as well as the
performance reward fund increased y-o-y and the
Administrative expense 280,194,020 264,014,052 6.13% amount of depreciation increased resulted from
accounting estimation changes for fixed assets in the
fourth quarter of last year.
Mainly because Shenzhen CSG Display was excluded
in the consolidation scope of the Group due to part of
Financial expense 109,025,628 119,638,263 -8.87% the equity was sold at the end of last year and interest
expenditure declined due to the decreasing borrowing
balance.
Mainly because Shenzhen CSG Display was excluded
in the consolidation scope of the Group due to part of
Income tax expense 60,997,406 113,728,215 -46.37% the equity was sold at the end of last year. In addition,
