CSG HOLDING CO., LTD.
SEMI-ANNUAL REPORT 2016
Chairman of the Board:
ZENG NAN
August 2016
CSG Semi-annual Report 2016
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 facticity, accuracy and
completeness of the whole contents.
All directors attended the meeting of the Board for deliberating the semi-annual report of the
Company in person.
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 principal of the financial
department Mr. Ding Jiuru 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 Semi-annual Report 2016
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 ..................................................................................... 21
Section VI. Changes in Shares and Particulars about Shareholders .......................... 41
Section VII. Particulars about Directors, Supervisors and Senior Executives ........... 45
Section VIII. Financial Report .................................................................................. 46
Section IX. Documents available for Reference ..................................................... 141
CSG Semi-annual Report 2016
Paraphrase
Items Refers to Contents
Company, the Company, CSG 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 Semi-annual Report 2016
Section II. Company profile
I. 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 Zeng Nan
II. Person/Way to contact
Secretary of the Board Representative of security affairs
Name Zhou Hong Ma Limei
CSG Building, No.1 of the 6th Industrial Road, CSG Building, No.1 of the 6th Industrial Road,
Contact address
Shekou, Shenzhen, P. R.C. Shekou, Shenzhen, P. R.C.
Tel. (86)755-26860666 (86)755-26860666
Fax. (86)755-26860685 (86)755-26860685
E-mail securities@csgholding.com securities@csgholding.com
III. Other information
1. Way of contact
Whether registered address, office address and their postal codes, website address and email address of the Company changed in the
report period or not
□ Applicable √Not applicable
The registered address, office address and their postal codes, website address and email address of the Company did not change in
the report period. More details can be found in Annual Report 2015.
2. Information disclosure and preparation place
Whether information disclosure and preparation place changed in the report period or not
□ Applicable √ Not applicable
The newspapers designated by the Company for information disclosure, the website designated by CSRC for disclosing semi-annual
report and preparation place of semi-annual report did not change in the report period. More details can be found in Annual Report
CSG Semi-annual Report 2016
2015.
3. Registration changes of the Company
Whether registration has changed in the report period or not
□ Applicable √ Not applicable
The registration date and place of the Company, its business license number, taxation registration number and organizational code did
not change in the report period. More details can be found in Annual Report 2015.
4. Other relevant information
Whether other relevant information changed in the report period or not
□ Applicable √ Not applicable
CSG Semi-annual Report 2016
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 year-on-year
(Jan. to Jun.2016) of last year (%)
Operating income (RMB) 4,228,165,642 3,323,039,502 27.24%
Net profit attributable to shareholders of the listed
466,883,254 205,767,344 126.90%
company(RMB)
Net profit attributable to shareholders of the listed company
423,523,383 64,267,683 559%
after deducting non-recurring gains and losses(RMB)
Net cash flow arising from operating activities(RMB) 1,046,720,349 352,563,820 196.89%
Basic earnings per share (RMB/Share) 0.22 0.10 120%
Diluted earnings per share (RMB/Share) 0.22 0.10 120%
Increased by 3.52 percentage
Weighted average ROE (%) 5.99% 2.47%
points
Increase/decrease in this
End of this period End of last year period-end over that of last
year-end (%)
Total assets (RMB) 16,975,221,410 15,489,600,160 9.59%
Net assets attributable to shareholder of listed company
7,716,520,542 7,874,310,997 -2.00%
(RMB)
Total share capital of the Company in the trade day before the disclosure day of this report
Total share capital of the Company in the trade day before the disclosure day of this report (share) 2,075,335,560
Fully diluted EPS calculated with the latest share capital (RMB/Share) 0.22
II. Difference of accounting data under domestic and overseas accounting standards
1. Differences of the net profit and net assets disclosed in financial report prepared under international and
Chinese accounting standards
□ Applicable √ Not applicable
No such differences in the report period.
CSG Semi-annual Report 2016
2. Difference of the net profit and net assets disclosed in financial report prepared under overseas and
Chinese accounting standards
□ Applicable √ Not applicable
No such differences in the report period.
3. Explanation on difference of accounting data under overseas and Chinese accounting standards
□ Applicable √ Not applicable
III. 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
228,658 --
write-off that accrued for impairment of assets)
Governmental subsidy reckoned into current gains/losses (not
including the subsidy enjoyed in quota or ration according to
47,606,029 --
national standards, which are closely relevant to enterprise’s
business)
Other non-operating income and expenditure except for the
1,542,049 --
aforementioned items
Less: Impact on income tax 7,452,914 --
Impact on minority shareholders’ equity (post-tax) -1,436,049 --
Total 43,359,871 --
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
It did not exist that 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.
CSG Semi-annual Report 2016
Section IV. Report of the Board of Directors
I. Introduction
In the first half year of 2016, the global economic situation was turbulent, the recovery of the main economies remained weak, and
risk events occurred frequently. Under the background of a slowdown in the global economic growth and increasing uncertainty,
along with Chinese economy structure adjustment being further strengthened, industrial enterprises achieved profit growth, the
measure of “Removing Excess Capacity” achieved initial success, and the overall economy achieved a steady growth.
In the first half year of 2016, market situation of the Company’s involving industries got better comparing with the corresponding
period of last year. Confronted with favorable market situation, under the leadership of the Board, CSG's management team insisted
on the professional spirit of professional managers, continued to adhere to the professional ethics of \"Loyalty and Integrity, Diligence
and Conscientiousness\", carried forward the enterprise spirit of \"Realistic and Innovative, United and Efficient\", and promptly seized
market opportunities and all the business got outstanding achievements. Especially, flat glass industry and solar energy industry
achieved marvelous achievements. In the first half year, the Company realized operating revenue of RMB 4,228.17 million, with a
year-on-year increase of RMB 905.13 million and growth rate of 27.24%. Net profit attributable to parent company was RMB 466.88
million, with a year-on-year increase of RMB 261.12 million and growth rate of 126.90%. Net profit attributable to shareholders of
parent company after deducting non-recurring gains and losses was RMB 423.52 million, with a year-on-year increase of RMB
359.26 million and growth rate of 559%.
In the first half year of 2016, the prices of flat glass products held comparatively firm.With the reduction of natural gas price, prime
costs were reduced and profitability of the whole industry increased significantly. Flat glass division of the Company promptly seized
market opportunities, continued to reinforce cost control, energy saving, and promote the manufacture and sales of differentiated and
high-grade products. In the first half year, flat glass division realized revenue (external sales) of RMB 1,569.19 million with a
year-on-year increase of 24.94%, and book net profit of RMB 209.15 million with a year-on-year increase of 4369.02%.
In the first half of 2016, market competition for architectural glass continued to intensify, the overall prices continued to decline, but
the market demand was sizable. Architectural glass industry of the Company further strengthened management and proactively
promoted the sales of differentiated products. In the first half year, architectural glass division realized revenue (external sales) of
RMB 1,313.42 million, the same level as the corresponding period of last year, and book net profit of RMB 150.33 million with a
year-on-year decrease of 15.36%.
In the first half of 2016, both domestic and international PV market maintained a good growth momentum. Solar energy division of
the Company grasped market opportunities, actively explored new market and expanded production capacity. In the first half year,
PV industry realized revenue (external sales) of RMB 1,254.77 million with a year-on-year increase of 102.71%, and book net profit
of RMB 198.21 million with a year-on-year increase of 3323.32%.
In the first half year of 2016, as market competition for middle and low end electronic glass products was further increasing, the
display industry remained in the doldrums. However, the market of medium and high end products of electronic glass stayed steady,
and new display product market developed rapidly. In order to enhance the profitability of the Company's electronic glass and display
industry, the Company established Electronic Glass and Display Division, incorporating its subsidiaries in the field into the
management of the division, and actively promoted development and production of medium and high end products and new products
according to market conditions. The division realized revenue (external sales) of RMB 89.71 million and book net profit of RMB
minus 3.4 million.
CSG Semi-annual Report 2016
II. Main business analysis
Year-on-year changes of main financial data
Unit: RMB
The corresponding Increase /decrease
The report period Reasons of change
period of last year year-on-year（%）
Mainly due to the increase of revenue from
Operating revenue 4,228,165,642 3,323,039,502 27.24%
solar glass division and flat glass division
Operating costs 3,076,818,503 2,646,020,710 16.28% Mainly due to the increase of revenue
Mainly due to the decrease of
Sales expenses 128,564,831 136,462,518 -5.79%
transportation costs
Mainly due to the increase of wages and
Administration expenses 358,937,506 282,368,089 27.12%
R&D costs
Financial expenses 133,353,393 132,742,464 0.46% Mainly due to the increase of borrowing
Income tax expenses 77,843,164 6,526,647 1092.70% Mainly due to the increase of profit
Mainly because more investment for R&D
R&D investment 171,627,628 130,265,531 31.75%
in the report period
Net cash flow arising Mainly due to the increase of revenue and
1,046,720,349 352,563,820 196.89%
from operating activities time for cash collection shortened
Net cash flow arising
Mainly due to the increase of cash paid by
from investment -976,174,439 -519,761,302 87.81%
subsidiaries
activities
Net cash flow arising
