CSG HOLDING CO., LTD.
SEMI-ANNUAL REPORT 2017
Chairman of the Board:
CHEN LIN
August 2017
Section I Important Notice, Content and Paraphrase
Board of Directors and the Supervisory Committee of CSG Holding Co., Ltd. (hereinafter referredto as the Company) and its directors, supervisors and senior executives hereby confirm that thereare 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 andcompleteness of the whole contents.Ms. Chen Lin, Chairman of the Board, Mr. Pan Yonghong, responsible person in charge ofaccounting and Ms.Wang Wenxin, principal of the financial department (accounting officer)confirm that the Financial Report enclosed in the semi-annual report of the Company is true,accurate and complete.All directors were present the meeting of the Board for deliberating the semi-annual report of theCompany in person.This report involves futures plans and some other forward-looking statements, which shall not beconsidered as virtual promises to investors. Investors are kindly reminded to pay attention topossible risks.Existing risk of staff loss, industry risk, market risk and exchange rate risk have beenwell-described in this report, please found details of the risk factors and countermeasures of futuredevelopment described in Section IV Discussion and Analysis of the Management.The Company has no plans of cash dividend distribution, bonus shares being sent or convertingcapital reserve into share capital.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 ......................................................................................... 4
Section III. Overview of the Company’s Business ............................................................................................. 7
Section IV. Performance Discussion and Analysis ......................................................................................... 10
Section V. Important Events .............................................................................................................................. 23
Section VI. Changes in Shares and Particulars about Shareholders ............................................................. 33
Section VII. Particulars about Directors, Supervisors and Senior Executives .............................................. 39
Section VIII. Corporate Bonds .......................................................................................................................... 41
Section IX. Financial Report ............................................................................................................................. 46
Section X. Documents Available for Reference .............................................................................................. 138
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 |
Section II. Company Profile & Financial Highlights
I. Company Profile
| 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 | ||
II. Person/Way to contact
| Secretary of the Board | ||
| Name | Yang Xinyu | |
| Contact address | CSG Building, No.1 of the 6th Industrial Road, Shekou, Shenzhen, P. R.C. | |
| Tel. | (86)755-26860666 | |
| Fax. | (86)755-26860685 | |
| 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 thereport 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 inthe report period. More details can be found in Annual Report 2016.
2. Information disclosure and preparation place
Whether information disclosure and preparation place changed in the report period or not
√ Applicable □ Not applicable
| Newspapers for information disclosure | Securities Times, China Securities Journal, ShangHai Securities News and Hong Kong Comercial Daily |
| Website assigned by CSRC to release the | www.cninfo.com.cn |
| semi-annual report | |
| The place for preparation of the semi-annual report | Office of Board of Directors |
| The query date of the designated website for the disclosure of interim announcements (if applicable) | |
| The query index of the designated website for the disclosure of interim announcements (if applicable) |
The newspapers designated by the Company for information disclosure, the website designated by CSRC for disclosing semi-annualreport and preparation place of semi-annual report did not change in the report period. More details can be found in Annual Report2016.
IV. Main accounting data and financial indexes
Whether it has retroactive adjustment or re-statement on previous accounting data for accounting policy changed and accountingerror correction or not
□Yes √ No
| The report period (Jan. to Jun.2017) | The same period of last year | Increase/decrease year-on-year (%) | |
| Operating income (RMB) | 4,944,337,861 | 4,228,165,642 | 16.94% |
| Net profit attributable to shareholders of the listed company(RMB) | 392,992,163 | 466,883,254 | -15.83% |
| Net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses(RMB) | 360,945,244 | 423,523,383 | -14.78% |
| Net cash flow arising from operating activities(RMB) | 1,019,889,454 | 1,046,720,349 | -2.56% |
| Basic earnings per share (RMB/Share) | 0.19 | 0.22 | -13.64% |
| Diluted earnings per share (RMB/Share) | 0.19 | 0.22 | -13.64% |
| Weighted average ROE (%) | 4.94% | 5.99% | Decreased by1.05 percentage points |
| End of this period | End of last year | Increase/decrease in this period-end over that of last year-end (%) | |
| Total assets (RMB) | 17,930,281,613 | 16,979,235,630 | 5.60% |
| Net assets attributable to shareholder of listed company (RMB) | 8,083,359,314 | 7,812,335,004 | 3.47% |
V. 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 andChinese accounting standards
□ Applicable √ Not applicable
No such differences in the report period.
2. Difference of the net profit and net assets disclosed in financial report prepared under overseas andChinese accounting standards
□ Applicable √ Not applicable
No such differences in the report period.
VI. Items and amounts of extraordinary profit (gains)/loss
√Applicable □ Not applicable
Unit: RMB
| Item | Amount | Note |
| Gains/losses from the disposal of non-current asset (including the write-off that accrued for impairment of assets) | -71,756 | -- |
| Governmental subsidy reckoned into current gains/losses (not including the subsidy enjoyed in quota or ration according to national standards, which are closely relevant to enterprise’s business) | 38,501,199 | -- |
| Other non-operating income and expenditure except for the aforementioned items | 541,795 | -- |
| Less: Impact on income tax | 5,814,362 | -- |
| Impact on minority shareholders’ equity (post-tax) | 1,109,957 | -- |
| Total | 32,046,919 | -- |
Explain reasons for the extraordinary profit (gain)/loss defined by Q&A Announcement No.1 on Information Disclosure forCompanies Offering Their Securities to the Public --- Extraordinary Profit/loss, and the items defined as recurring profit (gain)/lossaccording to the lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for CompaniesOffering 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&AAnnouncement No.1 on Information Disclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss.
Section III Overview of the Company’s Business
I. Main business of the Company in the report period
Whether the Company needs to comply with the disclosure requirements of the particular industryNoCSG is the No.1 brand of energy-saving glass at home and a renowned brand of solar PV products and display devices. Its productsand technologies are very popular at home and abroad. Its main business covers R&D, manufacturing and sales of high quality floatglass and architectural glass, solar glass, silicon material, renewable energy products such as PV battery and modules, and newmaterials and information display products such as ultra-thin electronic glass and display devices. It also provides one-stop servicessuch as project development, construction, operation and maintenance of solar photovoltaic power plants.
Flat glass industry
CSG now has 10 float glass production lines representing the most advanced technology in domestic market and 2 solar rolled glassproduction lines. The annual capacity of various high-grade float glass has reached approximately 2.4 million tons and the annualcapacity of solar rolled glass has reached approximately 0.5 million tons. The Company owns quartz sand raw material bases inJiangyou, Sichuan Province and Yingde, Guangdong Province. The production bases for flat glass, solar glass and ultra-thin glass ofthe Company located in Dongguan, Chengdu, Langfang, Wujiang, Xianning, and Yichang, which can produce various colors ofhigh-grade float glass with thickness from 1.1mm to 25mm and ultra-clear float glass. Those products are widely used in high-gradebuildings, decoration and furniture, mirror, automotive windshield, scanner, copier, PDP TV, rear-projection television, displaydevices and solar energy field, each performance indicator of which has reached domestic advanced level.The Company always adheres to innovation, transformation and upgrading, and further enhances the profitability of flat glassindustry by the implementation of differentiated competitive strategy. In 2016, the second-line technological transformation projectof the subsidiary Hebei CSG was successfully completed. The original float glass production line was transformed into a structurewith one melter and two production lines, which can simultaneously produce two types of float glass to satisfy differentspecifications and requirements and thus significantly improve the flexibility of production line. The first-line technologicaltransformation product of its subsidiary Chengdu CSG has been formally started, which is targeted to produce high quality auto glass.It has put into operation in Feb. 2017. The technology transformation and operation of such two production lines of float gloss shallfurther improve the competency of CSG in the market of flat glass.
Architectural glass industry
As the nation's largest supplier of high-grade engineering and architectural glass, CSG has five architectural and energy-saving glassprocessing centers which are located in Tianjin, Dongguan, Xianning, Wujiang and Chengdu. The Company possesses the world'smost advanced glass deep-processing equipment and testing instruments, and its products cover all kinds of architectural glass. R&D
and use of coating technology of the Company keep pace with the world and its technology of high end product is even of the world’sleading level. Following the second generation of energy-saving glass products, the Company has successively developed the third
generation and multi-function energy-saving glass products with continuous improving energy-saving and heat-preservation effect.Its high-quality energy-saving LOW-E insulating glass has occupied more than 40% of the domestic high-end market. At present, theCompany has 14 coated glass production lines, with an annual output of 30 million square meters of Low-E, thermal reflective coatedglass; 46 insulating glass production line, with an annual output of 10 million square meters of insulating glass; 39 glass productionline, with an annual output of 25 million square meters of toughtened glass.
The Company’s quality management system for engineering and architectural glass has been respectively approved by organizations
of UK AOQC and Australia QAS. The product quality which meets the national standards of the US, the UK and Australia enablesCSG frequently win in the international tendering and bidding. Since 1988, CSG's engineers and technicians have been continuouslyparticipating in the formulation and compilation of various national standards and industry standards. Various high-qualityarchitectural glass of the Company has been used in many landmark buildings at home and abroad, such as Beijing CapitalInternational Airport, CCTV, Shanghai Oriental Fisherman's Wharf, Shenzhen KingKey100 Building, Ping An International FinanceCentre, Hangzhou International Airport, Chengdu International Finance Centre, Hong Kong Four Seasons Hotel, Hilton Hotel atMelbourne Airport, Tokyo Tallest Building, International Centre of Abu Dhabi.
Solar Energy PV Business
With its stable quality management, strong cost control and outstanding technological innovations, CSG has built a complete industrychain covering high purity polycrystalline silicon materials, silicon wafer, silicon solar cell and modules, and design and constructionof solar photovoltaic power plants, by which the Company ensures the stable quality and best cost-efficiency of its PV products tocustomers.The Company now produces 8,000 ton/year of polycrystalline silicon, 1.5 GW/year of silicon wafer, 0.75GW/year of solar cell, and0.15GW/year of modules. Under the favorable domestic market outlook of solar PV products, the Company is further exploiting itspotential, and upgrading and reconstructing its existing lines of polycrystalline silicon with the purpose of increasing the totalproduction of polycrystalline silico to above 9,000 ton/year. Meanwhile, the Company is also promoting the newly-added siliconwafer project of Yichang CSG Polysilicon Co. and the PV cell line expansion project in Dongguan in order to enhance the anti-riskcapacity of its PV industry chain and drive the balanced, fast and healthy development of its PV industry chain. When the projects arecompleted, the Company's production of silicon wafers and silicon solar cells will be greatly increased and the generalcompetitiveness of the chain will be further improved.To perfect its solar energy chain, the Company established Shenzhen CSG PV Energy Co., Ltd., a wholly-owned subsidiary, in 2015,of which the mainline business is to invest and develop solar photovoltaic power plants and extend CSG's solar energy industry tocover highly value-added terminal applications. At the end of 2016, the Company newly established New Energy ApplicationDepartment to generally manage the investment, operation and maintenance of the Company's PV power plants and effectivelyintegrate internal assets, so as to enlarge and strengthen its solar energy business.
Electronic glass and display business
The Company has built two complete chains of full-set out-cell touch panel from raw material, processing to touch panel integrationmodule with its more than ten years of experience since 2000 when it established Shenzhen Nanbo Display Technology Co., Ltd. One
is "ultra-thin glass bed penal preparation → glass coating → glass yellow light → glass modules", and the other is "PET coating →film yellow light → film module. Its production capacity covers ultra-thin float glass preparation, glass coating, glass pattern
processing, glass touch panel module, flexible material filming, flexible material pattern processing, and full lamination of flexibletouch panel display, making it the only one company that holds a complete industry chain from ultra-thin float glass production toultra-thin sensor processing and ultra-thin touch panel module assembly to achieve high definition display and ultra-narrow edgetouch panel solutions. In 2016, the Company acquired 16.10% of the equity of Shenzhen Nanbo Display Technology Co., Ltd. andre-control of it.Furthermore, the Company, with its more than 20 years of experience in float glass production and powerful technology andinnovation team, entered the ultra-thin electronic glass market in 2010 and finished its strategic deployment across the country withthree electronic glass bases in Langfang, Hebei Province in North China, Yichang, Hubei Province in Central China, and Qingyuan,Guangdong Province in South China. The products can be as thin as 0.2mm-1.1mm, covering a range from normal soda-lime glass tomedium-aluminum, ultra-clear, ultra-thin, and high-aluminum glass, which are widely used in tempered glass films, cover glass, andITO conductive glass.The Company further integrated its ultra-thin electronic glass business with display business and established the electronic glass anddisplay department in 2016, which incorporated the subsidiaries of ultra-thin electronic glass and display, and actively boosted the
development and production of its middle and high-end products as well as new products according to market conditions.
II. Major changes in main assets
1. Details of major changes in main assets
| Main assets | Note of major changes |
| Equity assets | There was no significant change in equity assets in the report period. |
| Fixed assets | There was no significant change in fixed assets in the report period. |
| Intangible assets | There was no significant change in intangible assets in the report period. |
| Construction in progress | There was no significant change in construction in progress in the report period. |
2. Main overseas assets
□ Applicable √ Not applicable
III. Core Competitiveness Analysis
Whether the Company needs to comply with the disclosure requirements of the particular industryNo
① The Company currently has built complete industrial chains in the industries it involved, which has complementary advantage. Inglass industry, the Company has set up the industry chain as quartz sand → high quality float glass → architectural energy-saving
glass. In the solar energy industry, the Company has finished the comprehensive construction of industry chain from high puritypolycrystalline silicon materials, silicon wafer processing to cell and its module, photovoltaic rolled glass, etc. and extended toterminal application of PV power plant.With the improvement of technology in the chains, the industrial advantages emerged.
②The Company possesses a complete industry layout. At present, the Company has established large production bases in East China,
West China, South China and Central China, which enables the Company to be closer to the market and serve the market better.
③The Company has capability of technology innovation and product innovation. It owns independent intellectual property rights of
high-end float glass production process. The technology level of ultra-thin electronic glass is in the leading position in China. The
Company also keeps its R&D and production of energy-saving glass in line with the world’s advanced level, and its technique and
technology in the field of solar energy keep leading position in domestic market.
④The Company possesses high anti-risk capability. It has a perfect internal control system with sound performance. Meanwhile, the
management and control ability of account receivable and inventory stand in a high level within the industry.
CSG’s new management team have international and open ideas of operation and management, aim to achieve the transfer of
capacity and continue to expand new business fields along with the national policies of the Belt and Roads based on the intensivedevelopment of CSG's main business, making the Company be bigger and stronger, so as to be a comprehensive industrial group.
Section IV. Performance Discussion and Analysis
I. Overview
In the first half year of 2017, the global economic situation was turbulent, the recovery of the main economies remained weak, andrisk events occurred frequently. The FED increasing interest rates intensified the uncertainty of global economy. Under the
background of a slowdown in the global economic growth and increasing uncertainty, along with China’s economy structureadjustment 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 of 2017, CSG faced tremendous internal and external pressure, but under the leadership of the new management, thebusiness units advanced steadily in production and operation, seizing the favorable market opportunities while challenging theadverse market difficulties, and overfulfilled the business tasks of the first half of the year by improving internal efficiency, tappingpotentiality and increasing efficiency. In the first half year, the Company realized operating revenue of RMB 4,944 million, with ayear-on-year increase of RMB 716 million or 16.94%. The net profit was RMB 400 million, with a year-on-year decrease of RMB 65million or 13.99%. And the net profit after deducting non-recurring gains and losses was RMB 361 million, with a year-on-yeardecrease of RMB 63 million or 14.78%. Details of the production and operation of the Company were as follows:
(I) Glass industryIn which, the net profit of float glass was historically high. Affected by the national macro-control and environmental policy, floatglass prices stayed at a high level which has continued until the present day from the second half of last year. To take advantage ofthe opportunity, the Company took measures of improving capacity, strengthening internal management, tapping potential andincreasing efficiency, promoting the differentiation of glass products and other measures to ensure the greatest achievement in thefavorable market timing.The price of solar glass declined affected by the photovoltaic industry, which brought specified pressure to the management of theCompany. The Company actively developed new products, especially the market layout of thin glass and Double Glazed Glass Panel,to resist the impact of falling prices on profits.As architectural glass was enduring enormous pressure due to overall real estate investment growth slowing down, the Companyadopted various measures to expand sales volume for increasing its operating income. But affected by regulation and control policiesof upstream property industry, real estate developers generally implemented cost compression policies, together with the price rise ofraw float glass, which resulted in a decrease in profits. The Company took active measures to respond to the matter mentioned above,including improving internal efficiency, tapping potential and increasing efficiency, being proactive in the external market to seizemore orders, layout of the housing market as well as promoting new products, to reduce the pressure on rising costs.(II) Solar energy industryAfter offset of consolidation in the first half year of 2017, solar energy industry realized operating revenue of RMB 1,388 million,with a year-on-year increase of 9.74%. The net profit was RMB 106 million, with a year-on-year decrease of 46.74%.
In the first half of 2016, affected by “Expedited Installation by June 30”, the overall market of PV industry was rising rapidly. After
entering the second half year, as expedited installation subsided, the price showed a downward trend. The Company took measures oftechnological transformation, improving production capacity, improving efficiency, tapping potential and increasing efficiency andother measures to make up for the impact of price decline on its profits.At the end of 2015, the Group established Shenzhen CSG PV Energy Co., Ltd. to develop PV power station and further improvesolar energy industrial chain (silicon material-silicon wafer- solar cell - module -PV power station). The Company is activelypromoting PV building integration project, currently focusing on market cultivation and customer development, and has initially
reached a strategic cooperation agreement with some well-known property developers. The development of PV power stationbusiness will bring new income and profit growth point, and further improve the competitiveness of the Group in solar energyindustry.(III)Electronic glass and displayAfter offset of consolidation in the first half year of 2017, electronic glass and display division realized operating revenue of RMB367 million, with a year-on-year increase of RMB 277 million or 307.63%. The net profit was RMB 22.07 million, with ayear-on-year increase of RMB 25.47 million.The Group further defined the product business positioning and technical route. Facing market opportunity, the Group graduallyoccupied mobile toughened coated glass market through continuous technical improvement and reform and quality improvement. Atthe same time, along with the commercial operation of Qingyuan high aluminum ultra-thin glass production line and gradualimprovement of product quality, the productivity and product line of the Group in the field of electronic glass will be furtherimproved and enriched, and preliminarily set up national strategic layout. At present, the construction of Xianning ultra-highaluminum ultra-thin glass production line is proceeding smoothly. Civil works, craftwork and equipment installation are goingaccording to plan. Up until now, the project has entered the final stage and it will be ignited and enter into trial production within thisyear.
II. Main business analysis
1. Overview
See the relevant content in Discussion and Analysis of Business Situation, which Summarized in the Overview.Year-on-year changes of main financial data
Unit: RMB
| The report period | The corresponding period of last year | Increase /decrease year-on-year（%） | Reasons of change | |
| Operating revenue | 4,944,337,861 | 4,228,165,642 | 16.94% | Mainly due to the increase in revenue of glass industry and electronic glass and display industry |
| Operating costs | 3,737,514,462 | 3,076,818,503 | 21.47% | Mainly due to the increase in revenue |
| Sales expenses | 156,344,731 | 128,564,831 | 21.61% | Mainly due to the increase in transportation costs |
| Administration expenses | 402,554,340 | 348,836,395 | 15.4% | Mainly due to the increase in wages and R&D costs |
| Financial expenses | 143,374,027 | 133,353,393 | 7.51% | Mainly due to the increase in interest income |
| Income tax expenses | 80,453,021 | 77,843,164 | 3.35% | |
| R&D investment | 166,809,377 | 155,478,325 | 7.29% | |
| Net cash flow arising from operating activities | 1,019,889,454 | 1,046,720,349 | -2.56% | Mainly due to the increase in operating receivables |
| Net cash flow arising from investment activities | -739,345,310 | -976,174,439 | -24.26% | Mainly due to the decrease in cash paid by the subsidiaries |
| Net cash flow arising from financing activities | 67,852,001 | -241,140,524 | —— | Mainly due to the decrease in cash paid by dividends, profits or interest paid during the report period. |
| Net increase of cash and cash equivalent | 347,483,532 | -170,034,722 | —— | Mainly due to the decrease in cash expenditure on investment and financing activities |
Major changes on profit composition or profit resources in the report period
□Applicable √Not applicable
There were no major changes on profit composition or profit resources in the report period.Composition of main business
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 | 3,201,388,692 | 2,377,291,716 | 25.74% | 11.32% | 12.09% | -0.52% |
| Solar energy industry | 1,372,856,210 | 1,113,797,825 | 18.87% | 10.20% | 24.77% | -9.47% |
| Electronic glass & Display industry | 363,905,796 | 260,233,838 | 28.49% | 325.75% | 325.52% | 0.04% |
| Amount of unutilized | -23,614,824 | -20,408,528 | ||||
| According to product | ||||||
| Glass industry | 3,201,388,692 | 2,377,291,716 | 25.74% | 11.32% | 12.09% | -0.52% |
| Solar energy industry | 1,372,856,210 | 1,113,797,825 | 18.87% | 10.20% | 24.77% | -9.47% |
| Electronic glass & Display industry | 363,905,796 | 260,233,838 | 28.49% | 325.75% | 325.52% | 0.04% |
| Amount of unutilized | -23,614,824 | -20,408,528 | ||||
| According to region | ||||||
| Mainland China | 4,423,992,344 | 3,376,477,509 | 23.68% | 19.63% | 24.35% | -2.9% |
| H.K. China | 159,110,247 | 95,369,793 | 40.06% | 241.67% | 185.36% | 11.83% |
| Europe | 10,469,923 | 9,511,981 | 9.15% | -69.46% | -66.40% | -8.28% |
| Asia (excluding Mainland China and H.K.) | 284,803,871 | 221,558,467 | 22.21% | -10.11% | 0.12% | -7.95% |
| North America | 9,235,672 | 7,473,911 | 19.08% | -85.57% | -80.29% | -21.69% |
| Australia | 23,668,506 | 17,972,740 | 24.06% | 21.02% | 43.75% | -12.01% |
| Other regions | 3,255,311 | 2,550,450 | 21.65% | -31.82% | -32.78% | 1.13% |
III. Non - core business analysis
√Applicable □ Not applicable
Unit: RMB
| Amount | Percentage to total profits | Explanation of the reason | Whether sustainable or not | |
| Impairment of assets | 1,108,695 | 0.23% | Mainly due to provision for bad debts | No |
| Non-operating income | 16,029,596 | 3.33% | Mainly due to government subsidies | No |
| Non-operating expenses | 732,592 | 0.15% | Mainly due to disposal of non-current assets | No |
IV. Assets and liabilities
1. Significant changes in assets composition
Unit: RMB
| End of the report period | End of the same period last year | Increase or decrease in proportion | Explanation of Significant changes | |||
| Amount | Percentage to total assets | Amount | Percentage to total assets | |||
| Monetary funds | 934,235,201 | 5.21% | 586,803,505 | 3.46% | 1.75% | Mainly due to the increase in monetary funds during the report period |
| Accounts receivable | 679,943,915 | 3.79% | 627,985,983 | 3.70% | 0.09% | |
| Inventory | 630,593,776 | 3.52% | 477,780,925 | 2.81% | 0.71% | |
| Fixed assets | 11,773,502,135 | 65.66% | 11,457,972,991 | 67.48% | -1.82% | |
| Construction in | 1,259,425,371 | 7.02% | 1,362,096,377 | 8.02% | -1.00% | |
| progress | ||||||
| Short-term borrowing | 2,399,694,000 | 13.38% | 4,017,869,662 | 23.66% | -10.28% | Mainly due to the repayment of the loan due in the report period |
| Long-term borrowing | 1,624,000,000 | 9.06% | 1,438,660,000 | 8.47% | 0.59% |
2. Assets and liabilities at fair value
□Applicable √Not applicable
3. Limited asset rights as of the end of the report period
| Item | Limited amount | Limited reason |
| Monetary fund | 2,184,679 | Margin deposit deposited when the Company applies for a letter of credit issued by the bank and applies for loans from the bank. |
V. Investment analysis
1. Overall situation
√Applicable □ Not applicable
| Investment in the report period (RMB) | Investment in the same period of last year ( RMB) | Change range |
| 763,429,330 | 1,006,492,308 | -24.15% |
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 0,000
| Project | Way of investment | Fixed asset investment or not | Industry involved | Amount invested in the report period | Accumulative amount actually invested by the end of the report period | Source of funds | Progress of project (ongoing projects) | Expected return | Accumulative revenue achieved by the end of the report period | Reasons for not achieving the planned progress and the expected return |
| Yichang CSG upgrading & expansion project of electronic grade polysilicon and cold-hydrogenation technical upgrading | Self-built | Yes | Manufacturing industry | 4,633 | 21,754 | Own funds and borrowings from financial institutions | Plan to add a new cold-hydrogenation line in Yichang CSG, which can produce electronic grade polysilicon on basis of the solar grade polysilicon device, and meanwhile, add correspondent systems of reduction, rectification, recycle and utilities, so as to boost the actual capacity of polysilicon up to 12,000 tons/year (including 2,500 tons/year for electronic grade polysilicon and 9,500 tons/year for solar energy grade polysilicon). Now the cold-hydrogenation line has been constructed. | 22,481 | 0 | The polysilicon products are still in the experimental stage and have not been put into operation yet. |
| Expanding 150MW solar PV cell project in Dongguan | Self-built | Yes | Manufacturing industry | 0 | 11,709 | Own funds and borrowings from financial institutions | Plan to invest in and expand the polysilicon cell production line of Dongguan. When the project is completed, the designed production capacity in Dongguan will be increased from 200MW/year to 350MW/year and the actual production capacity will be 560MW/year. The capacity goal has been | 2,799 | 443 | The project was put into operation at the end of 2016. It is currently at |
| achieved by the end of Nov. 2016. | the commissioning stage. | |||||||||
| Yichang CSG’s project of adding 1GW silicon wafer | Self-built | Yes | Manufacturing industry | 25,139 | 34,640 | Own funds and borrowings from financial institutions | Plan to add 1GW capacity of high-efficient polysilicon wafer on the basis of Yichang CSG's existing 1GW silicon wafer capacity, so as to achieve 2.0 GW capacity of polysilicon wafer. Now the first 500MW is under construction, which is expected to finish in July 2017. | 14,853 | 0 | There’s no profit from the project as it is still in the construction period. |
| PV power plant investment | Self-built | Yes | Manufacturing industry | 4,593 | 19,972 | Own funds and borrowings from financial institutions | CSG plans to construct a PV power plant within two years from 2016 to 2017. Its wholly-owned subsidiary, Shenzhen CSG PV Energy Co., Ltd. will self-build 200MW and the remaining 140MW will be constructed by CSG with Qibin Group. In 2016, Shenzhen CSG PV obtained the approval for 60MW integrated PV power plant.3 0 MW distributed PV power plant was developed and constructed. 15MW was connected to the grid in 2016. | 4,344 | 574 | The project was put into operation at the beginning of 2017. |
| 4 million square meters light guide plate and PV glass production line | Self-built and purchased | Yes | Manufacturing industry | 18,042 | 32,369 | Own funds and borrowings from financial institutions | The Company plans to construct a 4 million square meters PV glass production line for new type ultra-thin LCD display. The line is also provided with a capacity of higher strength ultra-thin electronic glass than CSG Qingyuan. The equity of Xianning Feng Wei Technology Co., Ltd. has been acquired within the report period and the project is under construction. | 10,543 | 0 | There’s no profit from the project as it is still in the construction period. |
| Cold repair technical upgrading project of the first line of Chengdu CSG | Self-built | Self-built | Manufacturing industry | 5,722 | 9,436 | Own funds and borrowings from financial institutions | Cold repair technical upgrading has been performed for the first line of Chengdu CSG. The line will be upgraded to be a professional, high quality industrial thin glass line, featured 2mm series automobile glass while also covering 1.6mm. | 2,228 | 472 | The project was put into operation in May, 2017. |
| Cold repair technical upgrading of the second line (900T) of Hebei CSG | Self-built | Self-built | Manufacturing industry | 451 | 17,791 | Own funds and borrowings from financial institutions | The former 900T line of float glass of Hebei CSG was upgraded to produce 2mm~19mm glass wafer. The project started on August 18, 2016 and now it is at the commissioning stage. | 1,510 | 1,356 | The project was put into operation in March, 2017. |
| Subtotal | -- | -- | -- | 58,580 | 147,671 | -- | -- | 58,758 | 2,845 | -- |
| Project | Way of investment | Fixed asset investment or not | Industry involved | Amount invested in the report period | Accumulative amount actually invested by the end of the report period | Source of funds | Progress of project (suspended projects) | Expected return | Accumulative revenue achieved by the end of the report period | Reasons for not achieving the planned progress and the expected return |
| Wujiang energy - saving glass expansion project | Self-built | Yes | Manufacturing industry | 0 | 21,239 | -- | Plan to increase two coated glass production lines and part of the deep processing supporting capacity. When the project is completed, the annual capacities of wide flat coated glass and coated insulating glass will rise by 3 million square meters and 1.2 million square meters respectively.The wide flat coated glass line of 3 | -- | -- | By now, part of the project has been completed and the revenue was |
| million square meters has been completed, and the others will be invested according to market situations. | not calculated individually. | |||||||||
| Yichang CSG 700MW crystalline silicon solar cell project | Self-built | Yes | Manufacturing industry | 0 | 0 | -- | Plan to build a crystalline silicon solar cell production line with annual capacity of 700MW. The project was suspended and further investment will be based on actual industry situations. | -- | -- | The project was suspended. |
| Expanding 500MW solar module project in Dongguan | Self-built | Yes | Manufacturing industry | 0 | 0 | -- | Plan to expand the solar module production line with annual capacity of 500MW. The project was suspended and further investment will be based on actual industry situations. | -- | -- | The project was suspended. |
| Hebei Panel Glass project of medium-alumina ultra-thin electronic glass | Self-built | Yes | Manufacturing industry | 0 | 353 | Own funds | Plan to establish a production line for medium-alumina ultra-thin electronic glass in Hebei Panel Glass, using clean natural gas as the fuel, and produce 0.33mm～1.1mm medium-alumina ultra-thin glass with float process. The project was still in preparation. | -- | -- | The project was suspended. |
| Relocation and equipment upgrading of the solar module production line in Dongguan | Self-built | Yes | Manufacturing industry | 0 | 0 | -- | The Company plans to construct a module workshop in Xianning, Hubei Province, of which the final capacity will be 500MW. By relocation of some of the module equipment of its subsidiary, Dongguan CSG PV Technology Co., Ltd. and purchase of some new equipment, the first stage capacity of the Xianning workshop will be 300MW and, afterwards, it will be expanded to 500MW as required by the market conditions. | -- | -- | The project was suspended. |
| Solar online | Self-b | Yes | Manufa | 0 | 0 | -- | The Company plans to construct an online | -- | -- | The project |
| self-cleaning coated glass project of Dongguan CSG | uilt | cturing industry | self-cleaning coated glass line in Dongguan. | was suspended. | ||||||
| Malaysia-invested architectural glass plant | Self-built | Yes | Manufacturing industry | 0 | 0 | -- | The Company plans to construct an architectural glass plant in Negeri Sembilan, Malaysia. The Phase I capacity of the newly-built plant will be 1,200,000 square meters insulating glass and 1,000,000 square meters single coated glass. | -- | -- | The project was suspended. |
| Subtotal | -- | -- | -- | 0 | 21,592 | -- | -- | -- | -- | -- |
| Total | -- | -- | -- | 58,580 | 169,263 | -- | -- | 58,758 | 2,845 | -- |
| Details of approval and disclosure of the above projects as follows: 1.Expansion on energy-saving glass capacity of Wujiang Project and Yichang CSG 700MW silicon wafers project were deliberated and approved by the 18th meeting of the 5th session of board of directors on Dec. 23, 2010 and disclosed on Dec. 25, 2010, Announcement No.: 2010-046. 2.Yichang CSG upgrading & expansion project of electronic grade polysilicon was deliberated and approved by the 5thmeeting of the 7th session of board of directors on Mar. 27,2015 and disclosed on Mar. 31, 2015, Announcement No.: 2015-009. 3.Expanding 150MW solar PV cell project in Dongguan was deliberated and approved by the 10thmeeting of the 7th session of board of directors on Jan. 5, 2016 and disclosed on Jan. 6, 2016, Announcement No.: 2016-001. 4.Yichang CSG to add a 1GW silicon wafer project was deliberated and approved by the 10thmeeting of the 7th session of board of directors on Jan. 5, 2016 and 13thmeeting of the 7th session of board of directors on Apr. 15, 2016, respectively, and disclosed on Jan. 6, 2016 and Apr. 16, 2016, respectively, Announcement No.: 2016-001 and 2016-018. 5.PV power plant investment was deliberated and approved by the 11thmeeting of the 7th session of board of directors on Jan. 21, 2016 and disclosed on Jan. 22, 2016, Announcement No.: 2016-006. 6.4 million square meters light guide plate and PV glass production line was deliberated and approved by the extraordinary meeting of the 7th session of board of directors on May 20, 2016 and disclosed on May 21, 2016, Announcement No.: 2016-025. 7.Cold repair upgrading of the first line of Chengdu CSG was deliberated and approved by the 15th meeting of the 7th session of board of directors on Jul. 21, 2016. 8.Hebei Panel Glass project of medium-alumina ultra-thin electronic glass was deliberated and approved by the 4th meeting of the 7th session of board of directors on Oct.27, 2014 and disclosed on Oct. 29, 2014, Announcement No.: 2014-030. 9.Relocation and equipment upgrading of the solar module production line in Dongguan, solar online self-cleaning coated glass project of Dongguan CSG and Malaysia-invested architectural glass plant were deliberated and approved by the 13thmeeting of the 7th session of board of directors on Apr. 5, 2016 and disclosed on Apr. 16, 2016, Announcement No.: 2016-018. | ||||||||||
4. Financial assets investment(1) Securities investment
□ Applicable √ Not applicable
There was no securities investment in the report period.
(2) Derivative investment
□ Applicable √ Not applicable
There was no derivative investment in the report period.
VI. Sale of major assets and equity
1. Sale of major assets
□ Applicable √ Not applicable
There was no sale of major assets in the report period.
2. Sale of major equity
□ Applicable √ Not applicable
VII. Analysis of main subsidiaries and joint-stock companies
√Applicable □ Not applicable
Particular about main subsidiaries and joint -stock companies which have influence on the Company's net profit by over 10%
Unit: RMB
| Name of company | Type | Main business | Register capital | Total assets (RMB) | Net Assets (RMB) | Operating revenue (RMB) | Operating profit (RMB) | Net profit (RMB) |
| Chengdu CSG Glass Co., Ltd. | Subsidiary | Development, manufacture and sales of various special glass | 260 million | 938,103,561 | 504,519,334 | 422,534,110 | 87,692,252 | 75,472,235 |
| Hebei CSG Glass Co., Ltd. | Subsidiary | Manufacture and sales of various special glass | USD 48.06 million | 917,556,377 | 381,525,523 | 242,352,308 | 22,349,472 | 17,823,889 |
| Dongguan CSG Solar Glass Co., Ltd. | Subsidiary | Manufacture and sales of Solar-Energy Glass products | 480 million | 1,213,775,515 | 778,362,064 | 498,067,261 | 57,432,316 | 51,430,324 |
| Dongguan CSG Architectural | Subsidiary | Deep processing of glass | 240 million | 1,021,925,255 | 447,848,771 | 418,260,227 | 21,173,278 | 21,034,834 |
| Glass Co., Ltd. | ||||||||
| Wujiang CSG East China Architectural Glass Co., Ltd. | Subsidiary | Deep processing of glass | 320 million | 751,386,013 | 468,065,825 | 288,311,379 | 12,109,096 | 11,136,130 |
| Shenzhen Nanbo Display Technology Co., Ltd. | Subsidiary | Manufacture and sales of display device products | 143 million | 1,609,253,349 | 789,262,029 | 228,993,498 | 26,174,416 | 14,924,574 |
| Wujiang CSG Glass Co., Ltd. | Subsidiary | Manufacture and sales of various special glass | 565.04 million | 1,558,543,378 | 837,352,078 | 761,622,899 | 83,449,118 | 75,660,675 |
| Yichang CSG Polysilicon Co., Ltd. | Subsidiary | Manufacture and sales of high purity silicon material products | 1,467.98 million | 3,763,383,503 | 1,273,687,724 | 833,838,976 | 85,725,669 | 74,914,606 |
| Dongguan CSG PV-tech Co., Ltd. | Subsidiary | Manufacture and sales of solar cells and modules | 516 million | 979,332,164 | 402,816,633 | 592,852,501 | 14,138,216 | 15,453,052 |
| Xianning CSG Glass Co., Ltd. | Subsidiary | Development and manufacture and sales of various special glass | 235 million | 721,793,962 | 375,185,843 | 364,751,116 | 64,904,230 | 63,744,741 |
Particular about subsidiaries obtained or disposed in report period
□ Applicable √ Not applicable
VIII. Structured main bodies controlled by the Company
□ Applicable √ Not applicable
IX. Prediction of business performance from January to September 2017
Alert of loss or significant change in accumulative net profit from the beginning of year to the end of the next report period orcompared with the same period of last year, and statement of causations.
□ Applicable √Not applicable
X. Risks and response measures the Company faces
In 2017, in the face of “New Normal” of domestic economic development and “New CSG” construction task of the Company, the
Company will face the following risks and challenges:
① By the end of 2016, the Company had significant personnel change.Under the efforts of the Board of Directors and all employees,
the stability of daily operation of the Company has been guaranteed. At present, the new management team of CSG has been
established, and the operation management of the Company has been normal. However, the Company still faces the risk of lack ofhigh-end talent reserve. To cope with aforesaid risks, the Company will take the following measures:
A. Construct new corporate culture of CSG as soon as possible, strengthen innovation execution culture, establish an kind of open,equal, fair and enterprising corporate culture, and reinforce internal core cohesion of employees;B. Establish remuneration incentive system which related to performance and improve employee incentive mechanism;C. Strengthen internal employee training, introduce externalhigh-quality talent, and rapidly establish a high-quality talent team;D. Establish sustainable talent recruitment, cultivation, utilization, retaining, and development management system; create afuture-oriented human resource production, development, supply system that can support the future development of CSG.
②The flat glass and architectural glass industry continue to face the pressure of downward demand and excess capacity, the solar
energy and PV industry will face the risk of industrial integration and price fluctuation, display devices and electronic glass industrywill encounter the risk of accelerated technical upgrading and slow demand on electronic product. To cope with aforesaid risks, theCompany will take the following measures:
A. In the flat glass industry, the Company will accelerate the technical upgrading and reform of existing production line to realizedifferential operation, expand industrial scale and strengthen industrial competitiveness through industrial M&A;B. In architectural glass industry, the Company will strengthen the development of high-end market and overseas market, activelydevelop traditional residence market, and at the same time, maintain the industrial advantageous position of the Company throughmarket-oriented extension of industrial chain;C. In solar energy PV industry, the Company will accelerate the construction of silicon wafer production expansion project and otherprojects, increase support on construction of downstream PV power station, and reduce the risk of price fluctuation of upstreamsilicon material, etc.D. In electronic glass and display devices industry, the Company will strengthen research and development of new technology, newproduct, maintain its technical leading advantage in the industry, and further improve the product quality of ultra-thin electronic glass,so as to rapidly develop terminal market and improve industrial profitability.
③ Since 2016, flat glass and polysilicon industrial price has had great fluctuation, which results in great fluctuation of upstream raw
material price, and meanwhile the labor price is constantly rising, which brings risk to the operation of the Company. To cope withrisk, the Company will take the following measures:
A. Vigorously exploit potential and increase efficiency, and effectively implement energy saving and consumption reduction;B. Focus on the market change, and lock the price of bulk commodity at proper time;C. Utilize bulk purchase advantage to reduce purchase cost;D. Improve automatic production level, raise labor productivity.
④ Risk of fluctuation of foreign exchange rate: At present, nearly 10.65% of the sales revenue of the Company are from overseas, in
the future, the Company will further develop overseas business, and therefore, the fluctuation of exchange rate will bring certain riskto the operation of the Company. To cope with such risk, the Company will settle exchange in time and use safe and effective riskevading instrument and product to relatively lock exchange rate and reduce the risk caused by fluctuation of exchange rate.
Section V. Important Events
I. Particulars about annual general meeting and extraordinary general meeting held in thereport period
1. Particulars about Shareholders' General Meeting in the report period
| Meeting session | Type of meeting | Investor participation ratio | Hold date | Disclosure date | Disclosure index |
| The 7th Board of Directors | Extraordinary general meeting | 29.55% | Jan. 13, 2017 | Jan. 14, 2017 | Juchao website(www.cninfo.com.cn) |
| The 7th Board of Directors | Extraordinary general meeting | 30.26% | Mar. 02, 2017 | Mar. 03, 2017 | Juchao website(www.cninfo.com.cn) |
| The 7th Board of Directors | Extraordinary general meeting | 29% | May 02, 2017 | May 03, 2017 | Juchao website(www.cninfo.com.cn) |
| The 8th Board of Directors | Annual general meeting | 29.07% | May 22, 2017 | May 23, 2017 | Juchao website(www.cninfo.com.cn) |
2. Extraordinary general meeting which is requested to convene by the preferred shareholders who haveresumed the voting right
□ Applicable √Not applicable
II.Profit distribution and capitalization of capital reserve in the report period
□ Applicable √Not applicable
The Company has no plans of cash dividend distribution, bonus shares being sent or converting capital reserve into share capital.
III. Commitments completed by the actual controllers, the shareholders, the related parties,
the purchasers and the Company during the report period and those that hadn’t been
completed execution by the end of the report period
√Applicable □ Not applicable
| Commitments | Promisee | Type of commitments | Content of commitments | Commit-ment date | Commit- ment term | Implement- ation |
| Commitments for Share Merger Reform | The original non-tradable shareholder Shenzhen International | Commitment of share reduciton | The Company has implemented share merger reform in May 2006. Till June 2008, the share of the original non-tradable shareholders which holding over 5% total shares of the | 2006-5-22 | N/A | By the end of the report period, the above shareholders |
| Holdings (SZ) Limited and Xin Tong Chan Industrial Development (Shenzhen) Co., Ltd. | Company had all released. Therein, the original non-tradable shareholder Shenzhen International Holdings (SZ) Limited and Xin Tong Chan Industrial Development (Shenzhen) Co., Ltd. both are wholly-funded subsidiaries to Shenzhen International Holdings Limited (hereinafter Shenzhen International for short) listed in Hong Kong united stock exchange main board. Shenzhen International made commitment that it would strictly carry out related regulations of Securities Law, Administration of the Takeover of Listed Companies Procedures and Guiding Opinions on the Listed Companies’ Transfer of Original Shares Released from Trading Restrictions issued by CSRC during implementing share decreasingly-held plan and take information disclosure responsibility timely. | of the Company had strictly carried out their promises. | ||||
| Commitments in report of acquisition or equity change | Foresea Life Insurance Co., Ltd,, Shenzhen Jushenghua Co., Ltd. and Chengtai Group Co., Ltd. | ? Commitment of horizontal competition, affiliate Transaction and ? 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 | By the end of the report period, the above shareholders of the Company had strictly carried out their promises. |
| Commitments in assets reorganization | ||||||
| Commitments in initial public offering or re-financing | ||||||
| Equity incentive |
| commitment | ||||||
| Other commitments for medium and small shareholders | ||||||
| Completed on time(Y/N) | Yes | |||||
| If the commitments is not fulfilled on time, explain the reasons and the next work plan | Not applicable | |||||
IV. Engaging and dismissing of CPA
Whether the semi-annual report has been audited or not
□ Yes √ No
The semi-annual report of the Company has not been audited.
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 from Board of Directors for “Non-standard audit report” of the previous
year
□ Applicable √ Not applicable
VII. Issues related to bankruptcy and reorganization
□ Applicable √ Not applicable
No such issues related to bankruptcy and reorganization occurred in the report period.
VIII. Lawsuits
Significant lawsuits and arbitrations
□ Applicable √ Not applicable
There were no significant lawsuits or arbitrations in the report period.Other lawsuits
□ Applicable √ Not applicable
IX. Penalty and rectification
□ Applicable √ Not applicable
No penalty or rectification for the Company in the report period.
X. Integrity of the Company and its controlling shareholders and actual controllers
□ Applicable √ Not applicable
XI. Implementation of the Company’s stock incentive plan, employee stock ownership plan or
other employee incentives
□ Applicable √ Not applicable
In the report period, there was no equity incentive plan, employee stock ownership plan or other employee incentive measures andtheir implementation.
XII.Major related transaction
1. Related transaction with routine operation concerned
□ Applicable √ Not applicable
In the report period, the Company did not have related transaction with routine operation concerned.
2. Related transaction with acquisition of assets or equity, sales of assets or equity concerned
□ Applicable √ Not applicable
In the report period, the Company did not have related transaction with acquisition of assets or equity, sales of assets or equityconcerned.
3. Related transaction with jointly external investment concerned
□ Applicable √ Not applicable
In the report period, the Company did not have related transaction with jointly external investment concerned.
4. Credits and liabilities with related parties
□ Applicable √ Not applicable
There was no credits and liabilities with related parties in the report period.
5. Other major related transaction
□ Applicable √ Not applicable
There was no other major related transaction in the report period.
XIII.Particular about non-operating fund of listed company occupied by controllingshareholder and its affiliated enterprises
□Applicable √Not applicable
It did not exist that non-operating fund of listed company was occupied by controlling shareholder or its affiliated enterprises in thereport period.
XIV. Significant contracts and their implementation
1. Trusteeship, contracting and leasing(1) Trusteeship
□ Applicable √ Not applicable
No trusteeship for the Company in the report period.
(2) Contract
□ Applicable √ Not applicable
No contract for the Company in the report period.
(3) Leasing
□ Applicable √ Not applicable
No leasing for the Company in the report period.
2. Major guarantees
√Applicable □ Not applicable
(1) Guarantee
Unit: RMB 0,000
| Particulars about the external guarantee of the Company (Barring the guarantee for subsidiaries) | ||||||||||||
| Name of the Company guaranteed | Related Announcement disclosure date | Guarantee limit | Actual date of happening (Date of signing agreement) | Actual guarantee limit | Guarantee type | Guarantee term | Complete implementation or not | Guarantee for related party (Yes or no) | ||||
| Guarantee of the Company for the subsidiaries | ||||||||||||
| Name of the Company guaranteed | Related Announcement disclosure date | Guarantee limit | Actual date of happening (Date of signing agreement) | Actual guarantee limit | Guarantee type | Guarantee term | Complete implementation or not | Guarantee for related party (Yes or no) | ||||
| YiChang Nanbo Photoelectric Glass Co., Ltd. | 2017-05-22 | 5,472 | 2017-05-26 | 3,284 | General guarantee | 2 year | No | No |
| YiChang Nanbo Photoelectric Glass Co., Ltd. | 2016-12-14 | 2,432 | 2017-05-23 | 1,459 | General guarantee | 1 year | No | No |
| Wujiang CSG Glass Co., Ltd. | 2016-08-12 | 10,000 | 2017-03-07 | 7,000 | General guarantee | 1 year | No | No |
| Dongguan CSG Architectural Glass Co., Ltd. | 2016-08-12 | 11,200 | 2016-08-19 | 10,000 | General guarantee | 1 year | No | No |
| Dongguan CSG Architectural Glass Co., Ltd. | 2017-01-13 | 18,000 | 2017-02-09 | 13,000 | General guarantee | 1 year | No | No |
| Yichang CSG Display Co.,Ltd. | 2017-05-31 | 3,648 | 2017-06-15 | 2,189 | General guarantee | 3 year | No | No |
| Tianjin CSG Energy-Saving Glass Co., Ltd. | 2016-08-12 | 10,000 | 2017-02-14 | 2,000 | General guarantee | 1 year | No | No |
| Sichuan CSG Energy Conservation Glass Co., Ltd. | 2016-03-23 | 13,000 | 2016-08-12 | 2,000 | General guarantee | 1 year | No | No |
| Sichuan CSG Energy Conservation Glass Co., Ltd. | 2017-01-23 | 5,000 | 2017-04-11 | 2,000 | General guarantee | 1 year | No | No |
| Wujiang CSG East China Architectural Glass Co., Ltd. | 2016-08-12 | 10,000 | 2017-04-28 | 6,000 | General guarantee | 1 year | No | No |
| Wujiang CSG East China Architectural Glass Co., Ltd. | 2016-12-14 | 10,000 | 2017-04-26 | 2,000 | General guarantee | 1 year | No | No |
| Xianning CSG Energy-Saving Glass Co., Ltd | 2016-08-12 | 10,000 | 2017-06-21 | 2,600 | General guarantee | 1 year | No | No |
| Xianning CSG Energy-Saving Glass Co., Ltd | 2016-03-23 | 10,000 | 2016-12-20 | 5,500 | General guarantee | 3 year | No | No |
| Dongguan CSG Solar Glass Co., Ltd. | 2016-12-14 | 15,000 | 2017-06-14 | 3,300 | General guarantee | 1 year | No | No |
| Yichang CSG Polysilicon Co.,Ltd. | 2017-01-13 | 2,000 | 2017-04-26 | 2,000 | General guarantee | 1 year | No | No |
| Xianning CSG Photoelectric Glass Co., Ltd. | 2016-08-12 | 30,000 | 2017-01-03 | 19,000 | General guarantee | 5 year | No | No |
| Qingyuan CSG New Energy-Saving Materials Co., Ltd. | 2016-08-12 | 5,000 | 2016-12-14 | 3,060 | General guarantee | 1 year | No | No |
| YiChang Nanbo Photoelectric Glass Co., Ltd. | 2017-05-22 | 10,032 | 2017-05-31 | 6,080 | General guarantee | 3 year | No | No |
| Yichang CSG Polysilicon Co.,Ltd. | 2017-05-22 | 20,000 | 2017-06-22 | 19,000 | General guarantee | 3 year | No | No |
| Total amount of approving guarantee for subsidiaries in report period (B1) | 259,606 | Total amount of actual occurred guarantee for subsidiaries in report period (B2) | 80,851 | ||||||||
| Total amount of approved guarantee for subsidiaries at the end of reporting period (B3) | 438,794 | Total balance of actual guarantee for subsidiaries at the end of reporting period (B4) | 111,471 | ||||||||
| Subsidiary to subsidiary guarantees | |||||||||||
| Name of the Company guaranteed | Related Announcement disclosure date | Guarantee limit | Actual date of happening (Date of signing agreement) | Actual guarantee limit | Guarantee type | Guarantee term | Complete implementation or not | Guarantee for related party (Yes or no) | |||
| Total amount of guarantee of the Company( total of three abovementioned guarantee) | |||||||||||
| Total amount of approving guarantee in report period (A1+B1+C1) | 259,606 | Total amount of actual occurred guarantee in report period (A2+B2+C2) | 80,851 | ||||||||
| Total amount of approved guarantee at the end of report period (A3+B3+C3) | 438,794 | Total balance of actual guarantee at the end of report period (A4+B4+C4) | 111,471 | ||||||||
| The proportion of total actual guarantee (that is A4+B4+C4) to net assets of the Company | 13.79% | ||||||||||
| Including: | |||||||||||
| Amount of guarantee for shareholders, actual controller and its related parties (D) | 0 | ||||||||||
| The debts guarantee amount provided for the guaranteed parties whose assets-liability ratio exceed 70% directly or indirectly (E) | 0 | ||||||||||
| Proportion of total amount of guarantee to net assets of the Company exceed 50% (F) | 0 | ||||||||||
| Total amount of the aforesaid three guarantees (D+E+F) | 0 | ||||||||||
| Explanations on possibly bearing joint and several liquidating responsibilities for undue guarantees (if applicable) | The Company shall bear joint and several liabilities in guarantee range if the subsidiaries fail to fulfill the obligation of repayment. | ||||||||||
| Explanations on external guarantee against regulated procedures (if applicable) | No | ||||||||||
Particulars about the guarantees which were guaranteed by a combination approach
(2) Illegal external guarantee
□ Applicable √ Not applicable
No Illegal external guarantee in the report period.
3. Other material contracts
□ Applicable √ Not applicable
No other material contracts for the Company in the report period.
XV. Social responsibilities
1. Performance of social responsibility for targeted poverty alleviation
No targeted poverty alleviation was carried out in the first half of the year, no follow-up plan for targeted poverty alleviation either.
2. Significant environmental situation
Whether the listed company and its subsidiaries belong to the key pollutant discharge units announced by the environmentalprotection departmentYes
| Name of Company or subsidiary | Name of major pollutants and characteristic contaminants | Way of emission | Number of Exhaust vent | Exhaust vent distribution | Emission concentration | Implementation of pollutant emission standards | Total emission | Approved total emission | Excessive emissions |
| Xianning CSG Glass Co., Ltd. | Dust\Soot\ SO2\ Nitrogen oxide | Discharge after the treatment of denitrification and dust removal | 16 | Chimney, Exhaust gas outlet | Dust≤30mg/m?；Soot≤40 mg/m?；SO2≤200 mg/m?；NOx≤350 mg/m?； | 《Emission standard of air pollutants for flat glass industry》(GB26453-2011) | Particulates:25.5t；SO2:72t；NOx:125t； | Particulates：96.82t/a；SO2:636.5t/a Nitrogen oxides：1113.89t/a | Reach the discharge standard |
| Chengdu CSG Glass Co., Ltd. | Dust\Soot\ SO2\ Nitrogen oxide | Discharge after the treatment of denitrification and dust removal | 15 | Chimney, Exhaust gas outlet | Dust≤28.4mg/m?；Soot≤32.13mg/m?；SO2≤277.6mg/m?；NOx≤330.3mg/m?； | 《Emission standard of air pollutants for flat glass industry》(GB26453-2011) | Particulates:37t；SO2: 340t；NOx :450t； | Particulates：129.395t/a；SO2:1035.162t/a; Nitrogen oxides：1811.536t/a | Reach the discharge standard |
| Hebei CSG Glass Co., Ltd. | Particulates＼SO2＼Nitrogen oxides | Discharged after denitrification, desulfurization and | 11 | Chimney, Exhaust gas outlet | Particulates≤16.9mg/m?； SO2≤113.2mg/m?； NOx≤324.1mg/m? | 《Emission Standard for Air Pollutants in Electronic Glass | Particulates:10.5t；SO2:75t；NOx :210t | Particulates：59.78t/a；SO2:498.18t/a NOx：982.2t/a | Reach the discharge standard |
| dust removal | Industry》（DB13/2168-2015）Hebei Local Standard | ||||||||
| Yichang CSG Polysilicon Co., Ltd. | PH\COD\ Ammonia nitrogen/Fluoride | Discharged to the sewage treatment plant after being treated by the Company's sewage treatment station. | 3 | Discharge outlets of waste water | PH:6-9；COD≤500mg/L；Fluoride≤10 mg/L； | 《Comprehensive Sewage Discharge Standard》Grade 3rd standard (GB8978-1996), implement grade 1st standard for fluoride | COD：30t Ammonia nitrogen：1.1t | COD：198.47t/a；Ammonia nitrogen：2.49t/a | Reach the discharge standard |
| Wujiang CSG Glass Co., Ltd. | Particulates\ SO2\ Nitrogen oxide | Discharge after the treatment of denitrification and dust removal | 39 | Chimney, Exhaust gas outlet | Particulates≤20mg/m?；SO2≤200 mg/m?；NOx≤300 mg/m?； | 《Emission standard of air pollutants for flat glass industry》(GB26453-2011) | Particulates:5.1t；SO2: 40.2t；NOx :114t | Particulates：76.91t/a；SO2:238.28t/a; Nitrogen oxides：818.04t/a | Reach the discharge standard |
| Dongguan CSG Solar Glass Co., Ltd. | Dust\ Soot\ SO2\ Nitrogen oxide | Discharge after the treatment of denitrification and dust removal | 22 | Chimney, Exhaust gas outlet | Dust≤5mg/m?；Soot≤10 mg/m?；SO2≤400 mg/m?；NOx≤650 mg/m?； | 《Emission standard of air pollutants for flat glass industry》(GB26453-2011) | Particulates:8.4t；SO2: 112t；NOx :232t； | Particulates：34.85t/a；SO2:300.99t/a; Nitrogen oxides：535.67t/a | Reach the discharge standard |
| Dongguan CSG Architectural Glass Co., Ltd. | PH\COD\ Ammonia nitrogen | Discharged after being treated by the Company's sewage treatment station | 1 | Discharge outlets of waste water | pH：6~9 COD≤25.8 mg/L； Ammonia nitrogen≤0.546 mg/L Fluoride≤0.369mg/L | Discharge Limits of Water Pollutants in Guangdong (DB44/26-2001), the second period, the | COD:0.7t；BOD5:0.4t；Ammonia nitrogen:0.01t； | COD:5.4t/a； Ammonia nitrogen:0.6t/a； | Reach the discharge standard |
| first grade standard | |||||||||
| Dongguan CSG PV-tech Co., Ltd. | Waste water: Fluoride \COD\ Ammonia nitrogen Exhaust gas: HF\NOx\HCI\CL2\NH3\VOC | The waste water is discharged after being treated by the waste water station, and the exhaust gas is discharged after being treated by the waste gas treatment tower. | 2 outlets for waste water and 18 outlets for exhaust gas | Discharge outlets of waste water and exhaust gas | Waste water：SS≤50mg/L；COD≤70 mg/L；Ammonia nitrogen≤10mg/L；Fluoride≤8mg/L；Exhaust gas：NOx≤30mg/m3；HF≤3 mg/m3；CL2≤5mg/m3；HCI≤5mg/m3；VOC≤30mg/m3； | Discharge Limits of Water Pollutants in Guangdong (DB44/26-2001), the second period, the first grade standard; Discharge Standard of Pollutants in Battery Industry(GB30484-2013);For VOCs, refer to implement the Emission Standards for Furniture Manufacturing Industry (DB44/814-2010), the standard for the second stage; For NH3, implement the Emission Standards for Odor Pollutants(GB14554-93). | Waste water： Suspended matter 2t；COD：5t；Ammonia nitrogen：0.2t；Fluoride：0.4t Exhaust gas： Nitrogen oxides：9.1t；Fluoride：0.4t；Hydrogen fluoride：0.3t；Chlorine gas：0.06t；Ammonia：0.5t；VOC：0.14t | Waste water： Suspended matter 9.36t/a；COD：14.04t/a；Ammonia nitrogen：1.56t/a；Fluoride：1.56t/a Exhaust gas： Nitrogen oxides：20.825t/a；Fluoride：1.5156t/a；Hydrogen fluoride：1.0829t/a；Chlorine gas：0.2363t/a；Ammonia：2.3312t/a；VOC：1.0986t/a | Reach the discharge standard |
Construction and operation of pollution control facilitiesThe Company builds Flue Gas Dust Removal System in the production lines. The system is running normally and exhaust emissionsis up to the standard.
XVI. Statement on other important matters
√Applicable □ Not applicable
1. Short-term Financing BillsOn 23 April 2013, annual general meeting of 2012 of CSG Holding Co., Ltd deliberated and approved the proposal of short-termfinancing bills offering, agreed the application of issuing short-term financing bills with a total amount of no more than 40 percent of
the Company’s net assets (the issued short-term financing bills included). On 20 December 2013, National Association of Financialmarket Institutional Investors held its 74th registration meeting of 2013, in which NAFMII decided to accept the Company’s
short-term financing bills registration, amounting to RMB 1.1 billion, valid for two years. China CITIC Bank Corporation Limitedand Agricultural Bank of China Co., Ltd were joint lead underwriters of these short-term financing bills, which could be issued bystages within the validity period of registration. On 14 March 2014, the Company issued short-term financing bills with a totalamount of RMB 0.5 billion and deadline of one year, which was redeemed on 14 March 2015. On 22 April 2015, the Companyissued the 1st batch of short-term financing bills for the year of 2015 with a total amount of RMB 0.6 billion and annual interest rateof 4.28%, and the expiry date is 23 April 2016. On 16-17 September 2015, the Company issued the 2nd batch of short-term financingbills for the year of 2015 with a total amount of RMB 0.4 billion and annual interest rate of 3.50%, and the expiry date is 17September 2016.
On Dec.14, 2016, the second extraordinary shareholders’ general meeting of 2016 of CSG deliberated and approved the proposal ofthe offering and registration of short-term financing bills, and agreed the Company’s registration and issuance of short-term financing
bills with a total amount of RMB 2.7 billion, which could be issued by stages within period of validity of the registration according to
the Company’s actual demands for funds and the status of inter-bank funds. However, the term of each issue shall not be longer thanone year and the registered quota shall not exceed 40 percent of the Company’s net assets.For details, please refer to www.chinabond.com.cn and www.chinamoney.com.cn.
2. Ultra-short-term financing bills
On 10 December 2014, the First Extraordinary Shareholders’ General Meeting 2014 of CSG Holding Co., Ltd deliberated and
approved the proposal of application for registration and issuance of ultra-short-term financing bills with registered capital of RMB 4billion at most and validity within 2 years. On 21 May 2015, National Association of Financial Market Institutional Investors
(NAFMII) held the 32nd registration meeting of 2015, in which NAFMII decided to accept the registration of the Company’s
ultra-short-term financing bills, amounting to RMB 4 billion and valid for two years. China Merchants Bank Co., Ltd., ShanghaiPudong Development Bank Co., Ltd., Industrial Bank Co., Ltd., China CITIC Bank Co., Ltd. and China Agriculture Bank Co., Ltd.were joint lead underwriters of these ultra-short-term financing bills, which could be issued by stages within period of validity of theregistration. On 12 June 2015, the Company issued the first batch of ultra-short-term financing bills for the year of 2015 with totalamount of RMB 0.8 billion and valid term of 270 days at the issuance rate of 4.25%, which was redeemed on 11 March 2016. On 13October 2015, the Company issued the second batch of ultra-short-term financing bills for the year of 2015 with total amount ofRMB 1.1 billion and valid term of 270 days at the issuance rate of 3.81%, which will be redeemed on 11 July 2016. On 10 March2016, the Company issued the first batch of ultra-short-term financing bills for the year of 2016 with total amount of RMB 0.8 billionand valid term of 270 days at the issuance rate of 3.15%, which will be redeemed on 6 December 2016. On 17 May 2016, theCompany issued the second batch of ultra-short-term financing bills for the year of 2016 with total amount of RMB 0.9 billion andvalid term of 270 days at the issuance rate of 4.18%, which will be redeemed on 10 February 2017. On 2 August 2016, the Companyissued the third batch of ultra-short-term financing bills for the year of 2016 with total amount of RMB 0.6 billion and valid term of270 days at the issuance rate of 3.67%, which will be redeemed on 1 May 2017. On Sep. 1, 2016, the Company issued the forth batchof ultra-short-term financing bills for the year of 2016 with total amount of RMB 0.5 billion and valid term of 270 days at theissuance rate of 3.5%, which will be redeemed on 2 June 2017.
For details, please refer to www.chinabond.com.cn and www.chinamoney.com.cn.
3. Perpetual bonds
On April 15, 2016, the Shareholders’ General Meeting 2015 of CSG deliberated and approved the proposal of application for
registration and issuance of perpetual bonds, and agreed the Company to register and issue perpetual bonds with total amount of
RMB 3.1 billion which could be issued by stages within period of validity of the registration according to the Company’s actualdemand for funds and the capital status of inter-bank market.
4. Medium-term notes
On 10 December 2014, the First Extraordinary Shareholders’ General Meeting 2014 of CSG Holding Co., Ltd deliberated and
approved the proposal of application for registeration and issuance of medium term notes with total amount of RMB 1.2 billion atmost. On 21 May 2015, National Association of Financial Market Institutional Investors (NAFMII) held the 32
nd
registration meeting
of 2015, in which NAFMII decided to accept the registration of the Company’s medium term notes, amounting to RMB 1.2 billion
and valid for two years. China Merchants Bank Co., Ltd. and Shanghai Pudong Development Bank Co., Ltd. were joint leadunderwriters of these medium term notes which could be issued by stages within period of validity of the registration.On 10 July2015, the Company issued the first batch of medium term notes with total amount of RMB 1.2 billion and valid term of 5 years at theissuance rate of 4.94%, which will be redeemed on 14 July 2020.
On April 15, 2016, the Shareholders’ General Meeting of 2015 of CSG deliberated and approved the proposal of application for
registration and issuance of medium term notes with total amount of RMB 0.8 billion, which could be issued by stages within period
of validity of the registration according to the Company’s actual demands for funds and the status of inter-bank funds.On May 22, 2017, the Shareholders’ General Meeting of 2016 of CSG deliberated and approved the proposal of application for
registration and issuance of medium term notes with total amount of RMB 1 billion, which could be issued by stages within period of
validity of the registration according to the Company’s actual demands for funds and the status of inter-bank funds.For details, please refer to www.chinabond.com.cn and www.chinamoney.com.cn.
XVII. Significant events of subsidiaries of the Company
□ Applicable √ Not applicable
Section VI. Changes in Shares and Particulars about Shareholders
I. Changes in Share Capital
1. Changes in Share Capital
Unit: Share
| Before the Change | Increase/Decrease in the Change (+, -) | After the Change | |||||||
| Amount | Proportion (%) | New shares issued | Bonus shares | Capitalization of public reserve | Others | Subtotal | Amount | Proportion (%) | |
| I. Restricted shares | 12,736,888 | 0.61% | -12,490,013 | -12,490,013 | 246,875 | 0.01% | |||
| 3. Other domestic shares | 12,736,888 | 0.61% | -12,490,013 | -12,490,013 | 246,875 | 0.01% | |||
| Domestic natural person’s shares | 12,736,888 | 0.61% | -12,490,013 | -12,490,013 | 246,875 | 0.01% | |||
| II. Unrestricted shares | 2,062,598,672 | 99.39% | 12,490,013 | 12,490,013 | 2,075,088,685 | 99.99% | |||
| 1. RMB Ordinary shares | 1,300,128,680 | 62.65% | 12,376,013 | 12,376,013 | 1,312,504,693 | 63.24% | |||
| 2. Domestically listed foreign shares | 762,469,992 | 36.74% | 114,000 | 114,000 | 762,583,992 | 36.75% | |||
| III.Total shares | 2,075,335,560 | 100% | 2,075,335,560 | 100% | |||||
Reasons for share changed
√ Applicable □ Not applicable
Due to position changes of some of the directors of the Company Shenzhen Branch of China Securities Depository and Clearing Co.,Ltd. adjusted the amount of the restricted shares held by the senior management personnel as per requirements, and the amount ofrestricted shares and unrestricted shares changed accordingly. .Approval of share changed
√ Applicable □ Not applicable
On January 11, 2017, the Company's First Employee Congress of 2017 elected Mr. Zhao Peng as staff supervisor in the seventhsession of board of supervisors.Therefore, 75% shares, which were 1,875 shares held by Mr. Zhao Peng were classified into the
senior executives’ restricted shares.
On April 13, 2017, the Company's Second Employee Congress of 2017 elected Mr. Zhao Peng as staff supervisor in the seventhsession of board of supervisors.Therefore, 75% shares, which were 1,875 shares held by Mr. Zhao Peng were classified into the
senior executives’ restricted shares.
On February 23, 2017, Board of Directors of the Company convened an interim meeting to deliberate and approve the Proposal ofAppointment of Senior Management, which appointed Mr. Li Weinan as vice president of the Company. Therefore, 75% shares,
which were 225,000 shares held by Mr. Li Weinan were classified into the senior executives’ restricted shares.
On May 2, 2017, the First meeting of the 8
th
Session of Board of Directors of the Company deliberate and approve the Proposal ofAppointment of the New Session of Senior Management, which appointed Mr. Li Weinan as vice president of the Company.
Therefore, 75% shares, which were 225,000 shares held by Mr. Li Weinan were classified into classified into the senior executives’
restricted shares.Ownership transfer for changed shares
□ Applicable √ Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to commonshareholders 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 shares restricted at Period-begin | Number of shares released in the Year | Number of new shares restricted in the Year | Number of shares restricted at Period-end | Restriction reasons | Released date |
| Zeng Nan | 4,500,388 | 4,500,388 | 0 | 0 | On 15 November 2016, Zeng Nan who used to be chairman of the Board of Directors of the Company resigned from his office. According to relevant requirements, all the shares held by him had to be locked up for six months. | 2017-5-16 |
| Wu Guobin | 1,810,000 | 1,810,000 | 0 | 0 | On 15 November 2016, Wu Guobin who used to be CEO of the Company resigned from his office. According to relevant requirements, all the shares held by him had to be locked up for six months. | 2017-5-16 |
| Luo Youming | 1,790,000 | 1,790,000 | 0 | 0 | On 15 November 2016, Luo Youming who used to be CFO of the Company resigned from his office. According to relevant requirements, all the shares held by him had to be locked up for six months. | 2017-5-16 |
| Ke Hanqi | 1,730,000 | 1,730,000 | 0 | 0 | On 15 November 2016, Ke Hanqi who used to be vice president of the Company resigned from his office. | 2017-5-16 |
| According to relevant requirements, all the shares held by him had to be locked up for six months. | ||||||
| Zhang Fan | 1,530,000 | 1,530,000 | 0 | 0 | On 15 November 2016, Zhang Fan who used to be vice president of the Company resigned from his office. According to relevant requirements, all the shares held by him had to be locked up for six months. | 2017-5-16 |
| Zhang Bozhong | 114,000 | 114,000 | 0 | 0 | On 15 November 2016, Zhang Bozhong who used to be vice president of the Company resigned from his office. According to relevant requirements, all the shares held by him had to be locked up for six months. | 2017-5-16 |
| Ding Jiuru | 1,050,000 | 1,050,000 | 0 | 0 | On 15 November 2016, Ding Jiuru who used to be Secretary of the Board of Directors of the Company resigned from his office. According to relevant requirements, all the shares held by him had to be locked up for six months. | 2017-5-17 |
| Zhou Hong | 212,500 | 212,500 | 0 | 0 | On 12 August 2016, Zhouhong who used to be Secretary of the Board of Directors of the Company resigned from her office. According to relevant requirements, all the shares held by her had to be locked up for six months. | 2017-2-13 |
| Yan Wendou | 0 | 0 | 20,000 | 20,000 | On 11 January 2017, Yan Wendou who used to be supervisor of the Board of supervisors of the Company resigned from his office, all the shares which were bought by him after leaving office had to | 2017-7-14 |
| be locked up for six months. | ||||||
| Zhao Peng | 0 | 0 | 1,875 | 1,875 | Supervisor | —— |
| Li Weinan | 0 | 0 | 225,000 | 225,000 | Senior executive | —— |
| Total | 12,736,888 | 12,736,888 | 246,875 | 246,875 | -- | -- |
II. Issuance and listing of Securities
□Applicable √ Not applicable
III.Amount of shareholders of the Company and particulars about shares holding
Unit: share
| Total amount of shareholders at the end of the report period | 159,996 | Total amount of the preferred shareholders who have resumed the voting right at end of report period (if applicable) | 0 | ||||||||
| Shareholder with above 5% shares held or top ten shareholders | |||||||||||
| 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 un-restricted shares held | Number of share pledged/frozen | ||||
| Share status | Amount | ||||||||||
| Foresea Life Insurance Co., Ltd. – Haili Niannian | Domestic non state-owned legal person | 15.45% | 320,595,892 | 0 | 320,595,892 | ||||||
| Foresea Life Insurance Co., Ltd. – Universal Insurance Products | Domestic non state-owned legal person | 3.92% | 81,405,744 | 0 | 81,405,744 | ||||||
| Shenzhen Jushenghua Co., Ltd. | Domestic non state-owned legal person | 2.87% | 59,552,120 | 0 | 59,552,120 | pledged | 59,552,100 | ||||
| Foresea Life Insurance Co., Ltd. – Own Fund | Domestic non state-owned legal person | 2.15% | 44,519,788 | 0 | 44,519,788 | ||||||
| Central Huijin Asset Management Ltd. | State-owned legal person | 1.92% | 39,811,300 | 0 | 39,811,300 | ||||||
| China North Industries Corporation | State-owned legal person | 1.39% | 28,800,000 | 0 | 28,800,000 | ||||||
| China Galaxy International Securities (Hong Kong) Co., Limited | Foreign legal person | 1.35% | 27,992,212 | -700,000 | 27,992,212 | ||||||
| China Merchants Securities | State-owned | 1.10% | 22,817,998 | -7,299,0 | 22,817,998 | ||||||
| (HK) Co., Limited | legal person | 57 | |||||||||
| Shenzhen International Holdings (SZ) Limited | Domestic non state-owned legal person | 0.96% | 20,000,000 | 0 | 20,000,000 | ||||||
| BBH A/C VANGUARD EMERGING MARKETS STOCK INDEX FUND | Foreign legal person | 0.64% | 13,280,792 | 0 | 13,280,792 | ||||||
| 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 | Among shareholders as listed above, Foresea Life Insurance Co., Ltd.-Haili Niannian, Foresea Life Insurance Co., Ltd.-Universal Insurance Products, Foresea Life Insurance Co., Ltd.-Own Fund are all held by Foresea Life Insurance Co., Ltd. Shenzhen Jushenghua Co., Ltd. is a related legal person of Foresea Life Insurance Co., Ltd. and Chengtai Group Co., Ltd., another related legal person of Foresea Life Insurance Co., Ltd, which held 27,625,299 shares via China Galaxy International Securities (Hong Kong) Co., Limited. Except for the above-mentioned shareholders, It is unknown whether other shareholders belong to related party or have associated relationship regulated by the Management Regulation of Information Disclosure on Change of Shareholding for Listed Companies. | ||||||||||
| Particular about top ten shareholders with un-restrict shares held | |||||||||||
| Shareholders’ name | Amount of un-restrict shares held at year-end | Type of shares | |||||||||
| Type | Amount | ||||||||||
| Foresea Life Insurance Co., Ltd. – Haili Niannian | 320,595,892 | RMB ordinary shares | 320,595,892 | ||||||||
| Foresea Life Insurance Co., Ltd. – Universal Insurance Products | 81,405,744 | RMB ordinary shares | 81,405,744 | ||||||||
| Shenzhen Jushenghua Co., Ltd. | 59,552,120 | RMB ordinary shares | 59,552,120 | ||||||||
| Foresea Life Insurance Co., Ltd. – Own Fund | 44,519,788 | RMB ordinary shares | 44,519,788 | ||||||||
| Central Huijin Asset Management Ltd. | 39,811,300 | RMB ordinary shares | 39,811,300 | ||||||||
| China North Industries Corporation | 28,800,000 | RMB ordinary shares | 28,800,000 | ||||||||
| China Galaxy International Securities (Hong Kong) Co., Limited | 27,992,212 | Domestically listed foreign shares | 27,992,212 | ||||||||
| China Merchants Securities (HK) | 22,817,998 | Domestically listed foreign | 22,817,998 | ||||||||
| Co., Limited | shares | ||
| Shenzhen International Holdings (SZ) Limited | 20,000,000 | RMB ordinary shares | 20,000,000 |
| BBH A/C VANGUARD EMERGING MARKETS STOCK INDEX FUND | 13,280,792 | Domestically listed foreign shares | 13,280,792 |
| Statement on associated relationship or consistent action among the above shareholders: | Among shareholders as listed above, Foresea Life Insurance Co., Ltd.-Haili Niannian, Foresea Life Insurance Co., Ltd.-Universal Insurance Products, Foresea Life Insurance Co., Ltd.-Own Fund are all held by Foresea Life Insurance Co., Ltd. Shenzhen Jushenghua Co., Ltd. is a related legal person of Foresea Life Insurance Co., Ltd. and Chengtai Group Co., Ltd., another related legal person of Foresea Life Insurance Co., Ltd, which held 27,625,299 shares via China Galaxy International Securities (Hong Kong) Co., Limited. Except for the above-mentioned shareholders, It is unknown whether other shareholders belong to related party or have associated relationship regulated by the Management Regulation of Information Disclosure on Change of Shareholding for Listed Companies. | ||
| Explanation on shareholders involving margin business (if applicable) | N/A | ||
Whether the top ten shareholders or top ten shareholders with un-restrict shares carried out buy back deals in the report period
□Yes √ No
There were no buy back deals carried out by the top ten shareholders or top ten shareholders with un-restrict shares held in the reportperiod.
IV. Changes of controlling shareholder or actual controller
Changes of controlling shareholder in the report period
□Applicable √ Not applicable
Controlling shareholders have no changed in the report period.Changes of actual controller in the report period
□Applicable √ Not applicable
Actual controller has no changed in the report period.
Section VII. Particulars about Directors, Supervisors, Senior
Executives and Employees
I. Changes of shares held by directors, supervisors and senior executives
√ Applicable □ Not applicable
| Name | Title | Working status | Number of shares held at the beginning of the period (shares) | Number of shares held by the current period (shares) | Number of shares in the current period (shares) | Number of shares held at the end of the period (shares) | The number of restricted shares granted at the beginning of the period (shares) | The number of restricted shares granted in the current period (shares) | The number of restricted shares granted in the current period (shares) |
| Chen Lin | Chairman of the Board, | Currently in office | |||||||
| Jin Qingjun | Independent Director | Currently in office | |||||||
| Zhan Weizai | Independent Director | Currently in office | |||||||
| Zhu Guilong | Independent Director | Currently in office | |||||||
| Wang Jian | Director | Currently in office | |||||||
| Zhang Jinshun | Director | Currently in office | |||||||
| Ye Weiqing | Director | Currently in office | |||||||
| Cheng Xibao | Director | Currently in office | |||||||
| Pan Yonghong | Director /CEO | Currently in office | |||||||
| Zhang Wandong | Chairman of the board of supervisors | Currently in office | |||||||
| Li Xinjun | Supervisor | Currently in office | |||||||
| Zhao Peng | Supervisor | Currently in office | 2,500 | 2,500 | |||||
| Lu Wenhui | Executive | Currently |
| Vice President | in office | ||||||||
| Li Weinan | Vice president | Currently in office | 300,000 | 300,000 | |||||
| Yang Xinyu | Secretary of the Board | Currently in office | |||||||
| Fu Qilin | Independent Director | Post leaving | |||||||
| Long Long | Chairman of the board of supervisors | Post leaving | |||||||
| Hong Guo’an | Supervisor | Post leaving | |||||||
| Yan Wendou | Supervisor | Post leaving | 0 | 20,000 | 20,000 | ||||
| Total | -- | -- | 302,500 | 20,000 | 0 | 322,500 | 0 | 0 | 0 |
II. Changes of directors, supervisors and senior executives
√ Applicable □ Not applicable
| Name | Title | Type | Date | Reason |
| Zhu Guilong | Independent Director | Be elected | May 02, 2017 | Re-election of the board |
| Pan Yonghong | Director /CEO | Be employed | February 23, 2017 | Senior management employed by the Board of Directors |
| Zhang Wandong | Supervisor | Be elected | January 13, 2017 | By-election of supervisor |
| Li Xinjun | Supervisor | Be elected | January 13, 2017 | By-election of supervisor |
| Zhao Peng | Supervisor | Be elected | January 11, 2017 | Election of employee supervisor |
| Lu Wenhui | Executive Vice President | Be employed | February 23, 2017 | Senior management employed by the Board of Directors |
| Li Weinan | Vice president | Be employed | February 23, 2017 | Senior management employed by the Board of Directors |
| Yang Xinyu | Secretary of the Board | Be employed | May 02, 2017 | Senior management employed by the Board of Directors |
| Fu Qilin | Independent Director | Post leaving | May 02, 2017 | Post leaving at the expiration of term |
| Long Long | Chairman of the board of supervisors | Post leaving | January 13, 2017 | Resigned |
| Hong Guo’an | Supervisor | Post leaving | January 13, 2017 | Resigned |
| Yan Wendou | Supervisor | Post leaving | January 11, 2017 | Resigned |
Section VIII. Corporate Bonds
Whether the Company had corporate bonds publicly issued and listed on the stock exchange which hadn’t matured or fully paid until
the approval day of the semi-annual reportYes
I. The basic information of corporate bonds
| Name | Short name | Bond code | Issue date | Maturity date | Bond balance (RMB 0,000) | Interest rate | Way of repayment of principal and interest |
| Corporate bond in 2010 of CSG | 10 CSG 02 | 112022 | 2010-10-20 | 2017-10-20 | 100,000 | 5.33% | Using simple interest year - on - year, non - compound interest, the interest is paid once a year and the principal is paid at a time once due, and the final interest is paid together with the principal. |
| Corporate bond listing or transfer trading place | Shenzhen Stock Exchange | ||||||
| Appropriate arrangements for investors | Corporate bond "10 CSG 02" established the sell-back option for investors, which was completed in 2015. | ||||||
| Interest payment and encashment of corporate bonds during the reporting period | Pay in full and on time | ||||||
| Implementation of the special provisions including option and exchangeable terms of issuers or investors attached to corporate bonds and the relevant provisions during the report period (if applicable) | N/A | ||||||
II. Informantion of bond trustee and credit rating institution
| Bond trustee: | |||||||
| Name | China Merchants Securities Co., Ltd. | Office adds. | 38-45 floor, Ablock, Jiangsu Building, Yitian Road, Futian District, Shenzhen | Contact person | Nie Dongyun | Tel. | 0755-82960984 |
| Credit rating institution which tracks rating corporate bonds in the report period: | ||||
| Name | CCXR | Office adds. | 8 floor, Anji Building, 760 Tibet South Road, Huangpu District, Shanghai | |
| If bond trustee and credit rating institution engaged by the Company changed in the report period, explain the reason of the change, performance of the procedure, and the impact on the interest of investors etc. (if applicable) | Not applicable | |||
III. The use of fund raised by corporate bonds
| The use of fund raised by corporate bonds and performance of the procedure | The raised fund is in strict accordance with the relevant provisions. |
| Balance at the end of year | 0 |
| The operation of the special account for raised fund | The operation of the special account for raised fund is strictly accordance with the relevant provisions of prospectus commitment. |
| Whether the use of raised fund is consistent with the purpose, plan of use and other agreements of prospectus commitment | Consistent |
IV. Information of the rating of corporation bonds
According to track rating of China Chengxin Securities Rating Co., Ltd. (Abbreviation “CCXR”) in 2015, the Company's subject
credit rating is AA +, rating outlook is stable, and the bonds credit rating of the current period is evaluated as AA +.
On May 27, 2017, China Chengxin Securities Rating Co., Ltd. carried out a follow-up rating on corporate bonds CSG’s 2010Corporate Bond issued by the Company. In CSG’s 2010 corporate bond tracking rating report (2017), the Company's subject credit
rating is AA +, rating outlook is stable, and the bonds credit rating of the current period is evaluated as AA +.
For details, please refer to CSG’s 2010 corporate bond tracking rating report (2017) which was released on Juchao website
(www.cninfo.com.cn) on June 1, 2017.
V. Trust mechanism, debt repayment plans and other debt repayment safeguards ofcorporation bonds
During the report period, the trust mechanism, debt repayment plans and other debt repayment safeguards have not been changedwhich are the same as the relevant commitments of raising instruction manual, the relevant implementations are as follows:
I. Debt repayment planThe Company established the annual and monthly plan for application of funds based on the payment arrangement for coming dueprincipal and interest of the corporation bonds, reasonably managed and allocated the funds so as to make sure the due principal andinterest be paid in time. The capital sources for paying the corporation bonds in the report period were mainly the cash flow
generated by the Company’s operating activities and the bank loans.
In 2016, the Company paid the interest of corporation bond "10 CSG 02" on time.
II. Repayment safeguards for the Company’s bonds
In order to fully and effectively maintained the interests of the bondholders, the Company has made a series plans for the timely andsufficient repayment for bonds in the report period, including confirming the specialized departments and personnel, arranging the
funds for repayment, establishing the management measures, achieving the organization coordination, and strengthening informationdisclosure so as to form a set of safeguards to ensure the security payment of bond.
(I) Establish the "Bondholders' Meeting Rules"The Company has established the "Bondholders' Meeting Rules" for the corporation bonds in accordance with the "Pilot Approachfor the Issuance of Corporation Bonds", appointed the range, procedures and other important matters for bondholders to exerciserights by bondholders' meeting and made reasonable institutional arrangements to ensure the principal and interest of the corporationbonds be paid timely and sufficiently.
(II) Engage bond trusteeThe Company has engaged China Merchants Securities Co., Ltd. as the trustee for the corporation bonds in accordance with the"Pilot Approach for the Issuance of Corporation Bonds", and signed the "Bond Trusteeship Agreement". In the duration of the
corporation bonds, the bond trustee will maintain the interests of the Company’s bondholders according to the agreement.
(III) Establish the specialized reimbursement working group and set up special account for debt repaymentThe Company used the funds raised from the bond strictly in accordance with the "Financial Management System" and "FinancialFunds Management Approach". The Company has appointed the financial department to take the lead and take charge of therepayment of corporation bonds, implement and arrange the repayment funds for principal and interest of corporation bonds in theannual financial budget so as to ensure the principal and interest be paid on time and guarantee the interests of bondholders. Within15 working days before the annual interest pay day and annual principal pay day of corporation bonds, the Company speciallyestablishes a working group of which the members are composed of personnel from the company's financial management departmentto take charge of the repayment of interests and other relevant work. The Company guarantees the funds for payment of interest willbe sent to the special repayment account three days before the annual interest payment and the funds for cashing principle will besent to the special repayment account one week before the due date of corporation bonds, the special repayment account will payboth the principle and interest.
(IV) Improve profitability, strengthen funds management, and optimize debt structureThe Company has a rigorous financial system and a normative management system, account receivable turnover and inventory
turnover are in good status, the Company’s financial policies are steady, and the structure of assets and liabilities is reasonable. The
Company will continue its efforts to enhance the profitability of main business and the market competitiveness of products so as toimprove the Company 's return on assets; the Company also will continue to strengthen the management of accounts receivable andinventory so as to improve accounts receivable turnover and inventory turnover, and thereby enhance the Company 's ability toobtain cash.
(V) Strict information disclosure
The Company follows the principle of truly, accurately and completely disclosing information so that the Company’s debt paying
ability and use of proceeds can be under the supervision of the bondholders, bond trustee and shareholders to prevent debt repaymentrisk.
(VI) Other safeguardsWhen the Company cannot pay interest and principal on time or has other breach of contracts, the Company will at least takefollowing measures:
1. Do not distribute profits to shareholders.2. Postpone the implementation of capital expenditure projects such as major foreign investment, mergers and acquisitions.
VI. Information about the bond-holder meeting during the reporting period
There was no bond-holder meeting convened in the report period.
VII. Information about the obligations fulfilled by the bond trustee in the report period
Bond trustee perform their duties as the agreement during the report period.The Company disclosed the "2010 Annual Corporate Bonds Trusteeship Transaction Report (2015)" prepared by China MerchantsSecurities Co., Ltd. at Juchao website (http//www.cninfo.com.cn) on April 20, 2016.The Company disclosed the "2010 Annual Corporate Bonds Trusteeship Transaction Interim Report on Major Matters" prepared byChina Merchants Securities Co., Ltd. at Juchao website (http//www.cninfo.com.cn) on June 29, 2016.The Company disclosed the "2010 Annual Corporate Bonds Trusteeship Transaction Interim Report on Major Matters" prepared byChina Merchants Securities Co., Ltd. at Juchao website (http//www.cninfo.com.cn) on November 22, 2016.The Company disclosed the "2010 Annual Corporate Bonds Trusteeship Transaction Report (2016)" prepared by China MerchantsSecurities Co., Ltd. at Juchao website (http//www.cninfo.com.cn) on May 18, 2017.Investors are welcomed to refer to the above reports.
VIII. The Company's main accounting data and financial indicators as of the end of thereport period and the end of the previous year (or the report period and the same period oflast year)
RMB 0,000
| Item | End of this period | End of last year | Increase/decrease in this period-end over that of last year-end (%) |
| Flow ratio | 49% | 36% | 13% |
| Assets liabilities ratio | 53% | 52% | 1% |
| Speed ratio | 39% | 29% | 10% |
| The report period (Jan. to Jun.2017) | The same period of last year | Increase/decrease year-on-year (%) | |
| Interest coverage ratio of EBITDA | 7.15 | 8.21 | -12.91% |
| Loan repayment ratio | 100% | 100% | 0% |
| interest coverage ratio | 100% | 100% | 0% |
The main reason of the above main accounting data and financial indicators changed more than 30% y-o-y
□Applicable √ Not applicable
IX. Company overdue debts
□Applicable √ Not applicableThe Company didn’t have overdue debts.
X. Payment of principle and interest for other bonds and debt financing instruments duringthe report period
1. On February 13, 2017, the Company completed the repayment of the second batch of ultra-short- term financing bills of 2016 withtotal amount of RMB 0.9 billion and annual rate of 4.18%, which were issued on May 19, 2016.2. On May 1, 2017, the Company completed the repayment of the third batch of ultra-short- term financing bills of 2016 with totalamount of RMB 0.6 billion and annual rate of 3.67%, which were issued on August 4, 2016.3. On June 2, 2017, the Company completed the repayment of the fourth batch of ultra-short- term financing bills of 2016 with totalamount of RMB 0.5 billion and annual rate of 3.50%, which were issued on September 5, 2016.
XI. Information about of bank credit and use, as well as repayment of bank loans during thereport period
In the report period, the Company gained bank credit of RMB 7,040.4 million and use quota of RMB 3,116.34 million and repaidloans of RMB 926.10 million.
XII. Information about fulfillment of the stipulations or commitments specified in theProspectus of the issuance of the bonds during the report period
Not applicable
XIII. Major matters occurring during the report period
Other major matters please refer to note sixteen “Explanation on other major matters ” in the fifth section “Important Events” in this
report.
XIV.Whether there is a guarantor of corporate bonds
□ Yes √ No
Section IX. Financial Report
(I) Auditors’ Report
Whether the Semi-annual Report has been audited or not
□ Yes √ No
The Semi-annual Report of the Company has not been audited.
(II) Financial Statements
All figures in the Notes to the Financial Statements are in RMB.
1. Consolidated Balance Sheet
Prepared by CSG Holding Co., Ltd.
Unit: RMB
| Item | Ending balance | Beginning balance |
| Current asset: | ||
| Monetary capital | 934,235,201 | 586,803,505 |
| Settlement provision | ||
| Outgoing call loan | ||
| Financial assets measured at fair value with variations accounted into current income account | ||
| Derivative financial assets | ||
| Notes receivable | 536,557,203 | 456,347,237 |
| Account receivable | 679,943,915 | 627,985,983 |
| Prepayment | 162,247,377 | 95,733,132 |
| Insurance receivable | ||
| Reinsurance receivable | ||
| Provisions of Reinsurance contracts receivable | ||
| Interest receivable | ||
| Dividend receivable | ||
| Other account receivable | 33,559,090 | 33,229,149 |
| Repurchasing of financial assets | ||
| Inventories | 630,593,776 | 477,780,925 |
| Assets held for sales | ||
| Non-current asset due in 1 year |
| Other current asset | 249,369,319 | 199,905,577 |
| Total of current asset | 3,226,505,881 | 2,477,785,508 |
| Non-current assets | ||
| Loans and payment on other’s behalf disbursed | ||
| Available-for-sale financial asset | ||
| Expired investment in possess | ||
| Long-term receivable | ||
| Long-term share equity investment | ||
| Investment real estates | ||
| Fixed assets | 11,773,502,135 | 11,457,972,991 |
| Construction in process | 1,259,425,371 | 1,362,096,377 |
| Engineering goods | ||
| Fixed asset disposal | ||
| Production physical assets | ||
| Gas & petrol | ||
| Intangible assets | 1,021,669,447 | 1,032,458,977 |
| R&D expense | 76,049,471 | 66,927,714 |
| Goodwill | 397,392,156 | 397,392,156 |
| Long-term amortizable expenses | 9,693,102 | 975,660 |
| Differed income tax asset | 84,697,210 | 96,451,854 |
| Other non-current asset | 81,346,840 | 87,174,393 |
| Total of non-current assets | 14,703,775,732 | 14,501,450,122 |
| Total of assets | 17,930,281,613 | 16,979,235,630 |
| Current liabilities | ||
| Short-term loans | 2,399,694,000 | 4,017,869,662 |
| Loan from Central Bank | ||
| Deposit received and hold for others | ||
| Call loan received | ||
| Financial liabilities measured at fair value with variations accounted into | ||
| Derivative financial liabilities | ||
| Notes payable | 114,500,000 | 20,000,000 |
| Account payable | 1,382,500,478 | 1,169,869,370 |
| Prepayment received | 201,549,137 | 142,330,979 |
| Selling of repurchased financial assets | ||
| Fees and commissions receivable | ||
| Employees’ wage payable | 173,186,321 | 193,372,239 |
| Tax payable | 87,961,271 | 115,592,616 |
| Interest payable | 98,184,696 | 78,225,904 |
| Dividend payable | 207,533,556 | |
| Other account payable | 844,823,887 | 188,321,450 |
| Reinsurance fee payable | ||
| Insurance contract provision | ||
| Entrusted trading of securities | ||
| Entrusted selling of securities | ||
| Liabilities held for sales | ||
| Non-current liability due in 1 year | 1,101,203,702 | 1,029,340,000 |
| Other current liability | 300,000 | 300,000 |
| Total of current liability | 6,611,437,048 | 6,955,222,220 |
| Non-current liabilities | ||
| Long-term borrowings | 1,624,000,000 | 1,438,660,000 |
| Bond payable | ||
| Including：preferred stock | ||
| Sustainable debt | ||
| Long-term payable | 838,871,670 | |
| Long-term payable employees’s remuneration | ||
| Special payable | ||
| Anticipated liabilities | ||
| Differed income | 420,880,301 | 422,993,254 |
| Differed income tax liability | 24,164,221 | 29,749,137 |
| Other non-recurring liabilities | ||
| Total of non-current liabilities | 2,907,916,192 | 1,891,402,391 |
| Total of liability | 9,519,353,240 | 8,846,624,611 |
| Owners’ equity | ||
| Share capital | 2,075,335,560 | 2,075,335,560 |
| Other equity instruments | ||
| Including：preferred stock | ||
| Sustainable debt |
| Capital reserves | 1,349,953,977 | 1,260,702,197 |
| Less: Shares in stock | ||
| Other comprehensive income | 3,577,707 | 4,653,971 |
| Special reserves | 3,233,660 | 5,843,473 |
| Surplus reserves | 888,850,230 | 888,850,230 |
| Common risk provision | ||
| Undistributed profit | 3,762,408,180 | 3,576,949,573 |
| Total of owner’s equity belong to the parent company | 8,083,359,314 | 7,812,335,004 |
| Minor shareholders’ equity | 327,569,059 | 320,276,015 |
| Total of owners’ equity | 8,410,928,373 | 8,132,611,019 |
| Total of liability and owners’ equity | 17,930,281,613 | 16,979,235,630 |
Legal Representative：Chen Lin CFO：Pan Yonghong Manager of the financial department：Wang Wenxin
2. Balance Sheet of the Parent Company
Unit: RMB
| Item | Ending balance | Beginning balance |
| Current asset: | ||
| Monetary capital | 559,161,574 | 302,841,481 |
| Financial assets measured at fair value with variations accounted into current income account | ||
| Derivative financial assets | ||
| Notes receivable | ||
| Account receivable | ||
| Prepayment | 1,750,000 | 16,880 |
| Interest receivable | ||
| Dividend receivable | ||
| Other account receivable | 3,416,514,546 | 3,863,121,029 |
| Inventories | ||
| Assets held for sales | ||
| Non-current asset due in 1 year | ||
| Other current asset | ||
| Total of current asset | 3,977,426,120 | 4,165,979,390 |
| Non-current assets | ||
| Available-for-sale financial asset |
| Expired investment in possess | ||
| Long-term receivable | 2,003,645,000 | 2,003,645,000 |
| Long-term share equity investment | 4,790,440,632 | 4,790,440,632 |
| Investment real estates | ||
| Fixed assets | 23,798,714 | 26,073,848 |
| Construction in process | ||
| Engineering goods | ||
| Fixed asset disposal | ||
| Production physical assets | ||
| Gas & petrol | ||
| Intangible assets | 1,167,664 | 1,393,454 |
| R&D expense | ||
| Goodwill | ||
| Long-term amortizable expenses | ||
| Differed income tax asset | ||
| Other non-current asset | ||
| Total of non-current assets | 6,819,052,010 | 6,821,552,934 |
| Total of assets | 10,796,478,130 | 10,987,532,324 |
| Current liabilities | ||
| Short-term loans | 1,690,000,000 | 3,495,163,044 |
| Financial liabilities measured at fair value with variations accounted into | ||
| Derivative financial liabilities | ||
| Notes payable | ||
| Account payable | 34,528 | 317,874 |
| Prepayment received | ||
| Employees’ wage payable | 42,237,698 | 18,380,010 |
| Tax payable | 1,019,727 | 1,804,568 |
| Interest payable | 8,767,301 | 3,794,646 |
| Dividend payable | 207,533,556 | |
| Other account payable | 1,151,107,561 | 240,593,894 |
| Liabilities held for sales | ||
| Non-current liability due in 1 year | 1,000,000,000 | 1,000,000,000 |
| Other current liability |
| Total of current liability | 4,100,700,371 | 4,760,054,036 |
| Non-current liabilities | ||
| Long-term borrowings | 1,380,000,000 | 1,380,000,000 |
| Bond payable | ||
| Including：preferred stock | ||
| Sustainable debt | ||
| Long-term payable | 649,823,518 | |
| Long-term payable employees’s remuneration | ||
| Special payable | ||
| Anticipated liabilities | ||
| Differed income | 16,280,660 | 12,035,040 |
| Differed income tax liability | ||
| Other non-recurring liabilities | ||
| Total of non-current liabilities | 2,046,104,178 | 1,392,035,040 |
| Total of liability | 6,146,804,549 | 6,152,089,076 |
| Owners’ equity | ||
| Share capital | 2,075,335,560 | 2,075,335,560 |
| Other equity instruments | ||
| Including：preferred stock | ||
| Sustainable debt | ||
| Capital reserves | 1,494,670,923 | 1,405,529,511 |
| Less: Shares in stock | ||
| Other comprehensive income | ||
| Special reserves | ||
| Surplus reserves | 903,395,590 | 903,395,590 |
| Undistributed profit | 176,271,508 | 451,182,587 |
| Total of owners’ equity | 4,649,673,581 | 4,835,443,248 |
| Total of liability and owners’ equity | 10,796,478,130 | 10,987,532,324 |
3. Consolidated Income Statement
Unit: RMB
| Item | Balance of this period | Balance of last period |
| I. Total revenue | 4,944,337,861 | 4,228,165,642 |
| Incl. Business income | 4,944,337,861 | 4,228,165,642 |
| Interest income | ||
| Insurance fee earned | ||
| Fee and commission received | ||
| II. Total business cost | 4,502,642,030 | 3,720,133,533 |
| Incl. Business cost | 3,737,514,462 | 3,076,818,503 |
| Interest expense | ||
| Fee and commission paid | ||
| Insurance discharge payment | ||
| Net claim amount paid | ||
| Net insurance policy reserves provided | ||
| Insurance policy dividend paid | ||
| Reinsurance expenses | ||
| Tax and surcharge | 61,745,775 | 33,485,783 |
| Sales expense | 156,344,731 | 128,564,831 |
| Administrative expense | 402,554,340 | 348,836,395 |
| Financial expenses | 143,374,027 | 133,353,393 |
| Asset impairment loss | 1,108,695 | -925,372 |
| Plus: gains from change of fair value (“-“for loss) | ||
| Investment gains (“-“ for loss) | -14,264,359 | |
| Incl. Investment gains from affiliates | -14,264,359 | |
| Exchange gains (“-“ for loss) | ||
| Other gains | 23,674,234 | |
| III. Operational profit (“-“ for loss) | 465,370,065 | 493,767,750 |
| Plus: non-operational income | 16,029,596 | 50,038,364 |
| Incl. Income from disposal of non-current assets | 57,734 | 248,642 |
| Less: non-operational expenditure | 732,592 | 661,628 |
| Incl. Loss from disposal of non-current assets | 129,490 | 19,984 |
| IV. Gross profit (“-“ for loss) | 480,667,069 | 543,144,486 |
| Less: Income tax expenses | 80,453,021 | 77,843,164 |
| V. Net profit (“-“ for net loss) | 400,214,048 | 465,301,322 |
| Net profit attributable to the owners of parent company | 392,992,163 | 466,883,254 |
| Minor shareholders’ equity | 7,221,885 | -1,581,932 |
| VI. Net amount of other gains after tax | -1,076,264 | 508,053 |
| Net amount of other gains after tax attributable to owners of parent company | -1,076,264 | 508,053 |
| (I) Other comprehensive income that will not be reclassified into gains/losses afterward | ||
| 1. Change of net liability or asset of beneficiary plan from recalculating | ||
| 2. The share of comprehensive income in invested entities under equity method which can not be reclassified into profit or loss | ||
| (II) Other comprehensive income items that will be reclassified into gains/losses in the subsequent accounting period | -1,076,264 | 508,053 |
| 1. The share of comprehensive income in invested entities under equity method which can be reclassified into profit or loss afterward | ||
| 2.Gains and losses from changes in fair value available for sale financial assets | ||
| 3.Held-to-maturity investments reclassified to gains and losses of available for sale financial assets | ||
| 4.The effective portion of cash flow hedges and losses | ||
| 5.Translation differences in currency financial statements | -1,076,264 | 508,053 |
| 6.Other | ||
| Net of profit of other comprehensive income attributable to Minority shareholders’ equity | ||
| VII. Total of misc. incomes | 399,137,784 | 465,809,375 |
| Total of misc. incomes attributable to the owners of the parent company | 391,915,899 | 467,391,307 |
| Total misc gains attributable to the minor shareholders | 7,221,885 | -1,581,932 |
| VIII. Earnings per share: | ||
| (I) Basic earnings per share | 0.19 | 0.22 |
| (II) Diluted earnings per share | 0.19 | 0.22 |
Legal Representative：Chen Lin CFO：Pan Yonghong Manager of the financial department：Wang Wenxin
4. Income Statement of the Parent Co.
Unit: RMB
| Items | Balance of this period | Balance of last period |
| I. Revenue | 27,295,266 | 1,077,394 |
| Less:business cost | 0 | 60,334 |
| Tax and surcharge | 5,136,944 | 94,720 |
| Sales expense | ||
| Administrative expense | 70,540,224 | 61,812,557 |
| Financial expenses | 19,800,295 | 11,263,822 |
| Asset impairment loss | 7,706 | -1,770,242 |
| Plus: gains from change of fair value (“-“for loss) | ||
| Investment gains (“-“ for loss) | 399,280,607 | |
| Incl. Investment gains from affiliates | 9,850,045 | |
| Other gains | 18,000 | |
| II. Operational profit (“-“ for loss) | -68,171,903 | 328,896,810 |
| Plus: non-operational income | 794,380 | 766,180 |
| Incl. Income from disposal of non-current assets | 1,800 | |
| Less: non-operational expenditure | ||
| Incl. Loss from disposal of non-current assets | ||
| III. Gross profit (“-“ for loss) | -67,377,523 | 329,662,990 |
| Less: Income tax expenses | 0 | -45,852 |
| IV. Net profit (“-“ for net loss) | -67,377,523 | 329,708,842 |
| V. Net amount of other gains after tax | ||
| (I) Other comprehensive income that will not be reclassified into gains/losses afterward | ||
| 1. Change of net liability or asset of beneficiary plan from recalculating | ||
| 2. The share of comprehensive income in invested entities under equity method which can not be reclassified into profit or loss | ||
| (II) Other comprehensive income items that will be reclassified into gains/losses in the subsequent accounting period | ||
| 1. The share of comprehensive income in invested entities under equity method which can be reclassified into profit or loss afterward | ||
| 2.Gains and losses from changes in fair value available for sale financial assets |
| 3.Held-to-maturity investments reclassified to gains and losses of available for sale financial assets | ||
| 4.The effective portion of cash flow hedges and losses | ||
| 5.Translation differences in currency financial statements | ||
| 6.Other | ||
| VI. Total of misc. incomes | -67,377,523 | 329,708,842 |
| VII. Earnings per share: | ||
| (I) Basic earnings per share | ||
| (II) Diluted earnings per share |
5. Consolidated Cash Flow Statement
Unit: RMB
| Item | Balance of this period | Balance of last period |
| I. Net cash flow from business operation | ||
| Cash received from sales of products and providing of services | 5,472,732,654 | 4,822,965,397 |
| Net increase of customer deposits and capital kept for brother company | ||
| Net increase of loans from central bank | ||
| Net increase of inter-bank loans from other financial bodies | ||
| Cash received against original insurance contract | ||
| Net cash received from reinsurance business | ||
| Net increase of client deposit and investment | ||
| Net increase of disposal of the financial assets measured by fair value with the changes included in the current gains and losses | ||
| Cash received as interest, processing fee, and commission | ||
| Net increase of inter-bank fund received | ||
| Net increase of repurchasing business | ||
| Tax returned | 7,273,335 | 35,363,638 |
| Other cash received from business operation | 68,210,702 | 46,108,936 |
| Sub-total of cash inflow from business activities | 5,548,216,691 | 4,904,437,971 |
| Cash paid for purchasing of merchandise and services | 3,278,955,888 | 2,769,544,694 |
| Net increase of client trade and advance | ||
| Net increase of savings in central bank and brother company | ||
| Cash paid for original contract claim | ||
| Cash paid for interest, processing fee and commission | ||
| Cash paid for policy dividend | ||
| Cash paid to staffs or paid for staffs | 617,464,364 | 529,127,685 |
| Taxes paid | 380,644,776 | 336,130,323 |
| Other cash paid for business activities | 251,262,209 | 222,914,920 |
| Sub-total of cash outflow from business activities | 4,528,327,237 | 3,857,717,622 |
| Cash flow generated by business operation, net | 1,019,889,454 | 1,046,720,349 |
| II. Cash flow generated by investing | ||
| Cash received from investment retrieving | ||
| Cash received as investment profit | ||
| Net cash retrieved from disposal of fixed assets, intangible assets, and other long-term assets | 44,820 | 617,985 |
| Net cash received from disposal of subsidiaries or other operational units | ||
| Other investment-related cash received | 24,039,200 | 29,699,884 |
| Sub-total of cash inflow due to investment activities | 24,084,020 | 30,317,869 |
| Cash paid for construction of fixed assets, intangible assets and other long-term assets | 731,954,148 | 472,503,623 |
| Cash paid as investment | 4,250,000 | |
| Net increase of loan against pledge | ||
| Net cash received from subsidiaries and other operational units | 507,974,099 | |
| Other cash paid for investment activities | 31,475,182 | 21,764,586 |
| Sub-total of cash outflow due to investment activities | 763,429,330 | 1,006,492,308 |
| Net cash flow generated by investment | -739,345,310 | -976,174,439 |
| III. Cash flow generated by financing | ||
| Cash received as investment | 5,500,000 | |
| Incl. Cash received as investment from minor shareholders | 5,500,000 | |
| Cash received as loans | 1,452,919,750 | 4,443,422,252 |
| Cash received from bond placing | ||
| Other financing-related cash received | 1,666,591,530 | 100,725,978 |
| Subtotal of cash inflow from financing activities | 3,119,511,280 | 4,549,648,230 |
| Cash to repay debts | 2,924,757,768 | 3,988,397,915 |
| Cash paid as dividend, profit, or interests | 123,450,004 | 693,264,874 |
| Incl. Dividend and profit paid by subsidiaries to minor shareholders | ||
| Other cash paid for financing activities | 3,451,507 | 109,125,965 |
| Subtotal of cash outflow due to financing activities | 3,051,659,279 | 4,790,788,754 |
| Net cash flow generated by financing | 67,852,001 | -241,140,524 |
| IV. Influence of exchange rate alternation on cash and cash equivalents | -912,613 | 559,892 |
| V. Net increase of cash and cash equivalents | 347,483,532 | -170,034,722 |
| Plus: Balance of cash and cash equivalents at the beginning of term | 584,566,990 | 574,744,877 |
| VI. Balance of cash and cash equivalents at the end of term | 932,050,522 | 404,710,155 |
6. Cash Flow Statement of the Parent Co.
Unit: RMB
| Item | Balance of this period | Balance of last period |
| I. Net cash flow from business operation | ||
| Cash received from sales of products and providing of services | ||
| Tax returned | ||
| Other cash received from business operation | 4,843,988 | 2,616,039 |
| Sub-total of cash inflow from business activities | 4,843,988 | 2,616,039 |
| Cash paid for purchasing of merchandise and services | ||
| Cash paid to staffs or paid for staffs | 33,652,141 | 62,007,982 |
| Taxes paid | 6,095,316 | 39,306,033 |
| Other cash paid for business activities | 12,279,684 | 6,551,752 |
| Sub-total of cash outflow from business activities | 52,027,141 | 107,865,767 |
| Cash flow generated by business operation, net | -47,183,153 | -105,249,728 |
| II. Cash flow generated by investing | ||
| Cash received from investment retrieving | ||
| Cash received as investment profit | 389,430,562 | |
| Net cash retrieved from disposal of fixed assets, | 1,800 |
| intangible assets, and other long-term assets | ||
| Net cash received from disposal of subsidiaries or other operational units | ||
| Other investment-related cash received | 5,000,000 | 3,000,000 |
| Sub-total of cash inflow due to investment activities | 5,000,000 | 392,432,362 |
| Cash paid for construction of fixed assets, intangible assets and other long-term assets | 565,260 | 117,326 |
| Cash paid as investment | 175,755,000 | |
| Net cash received from subsidiaries and other operational units | 464,345,956 | |
| Other cash paid for investment activities | ||
| Sub-total of cash outflow due to investment activities | 565,260 | 640,218,282 |
| Net cash flow generated by investment | 4,434,740 | -247,785,920 |
| III. Cash flow generated by financing | ||
| Cash received as investment | ||
| Cash received as loans | 990,693,638 | 4,110,000,600 |
| Cash received from bond placing | ||
| Other financing-related cash received | 1,806,455,260 | 326,432,420 |
| Subtotal of cash inflow from financing activities | 2,797,148,898 | 4,436,433,020 |
| Cash to repay debts | 2,496,723,365 | 3,608,000,600 |
| Cash paid as dividend, profit, or interests | 2,213,425 | 662,199,041 |
| Other cash paid for financing activities | ||
| Subtotal of cash outflow due to financing activities | 2,498,936,790 | 4,270,199,641 |
| Net cash flow generated by financing | 298,212,108 | 166,233,379 |
| IV. Influence of exchange rate alternation on cash and cash equivalents | 855,016 | -2,568,311 |
| V. Net increase of cash and cash equivalents | 256,318,711 | -189,370,580 |
| Plus: Balance of cash and cash equivalents at the beginning of term | 301,637,933 | 394,606,753 |
| VI. Balance of cash and cash equivalents at the end of term | 557,956,644 | 205,236,173 |
7. Statement of Change in Owners’ Equity (Consolidated)
Amount of the Current Term
RMB
| Items | Amount of the Current Term | ||||||||||||
| Owners’ Equity Attributable to the Parent Company | Minority shareholders’ Total of owners’ equity | Total of owners’ equity | |||||||||||
| Share capital | Other equity instruments | Capital reserve | Less: treasury stock | Other comprehensive income | Special reserves | Surplus reserves | Common risk provision | Retained profit | |||||
| Preferred share | Perpetual capital securities | Others | |||||||||||
| I. Balance at the end of the previous year | 2,075,335,560 | 1,260,702,197 | 4,653,971 | 5,843,473 | 888,850,230 | 3,576,949,573 | 320,276,015 | 8,132,611,019 | |||||
| Plus: change of accounting policy | |||||||||||||
| Correction of errors in previous periods | |||||||||||||
| Business combination under the same control | |||||||||||||
| Others | |||||||||||||
| II. Balance at the beginning of current year | 2,075,335,560 | 1,260,702,197 | 4,653,971 | 5,843,473 | 888,850,230 | 3,576,949,573 | 320,276,015 | 8,132,611,019 | |||||
| III. Amount of change in current term | 89,251,780 | -1,076,264 | -2,609,813 | 185,458,607 | 7,293,044 | 278,317,354 | |||||||
| (“-“ for decrease) | |||||||||||||
| (I) Total amount of the comprehensive income | -1,076,264 | 392,992,163 | 7,221,885 | 399,137,784 | |||||||||
| (II) Capital paid in and reduced by owners | 89,251,780 | 71,159 | 89,322,939 | ||||||||||
| 1. Common shares invested by the shareholders | |||||||||||||
| 2. Capital invested by the owners of other equity instruments | |||||||||||||
| 3. Amounts of share-based payments recognized in owners’ equity | 110,368 | 71,159 | 181,527 | ||||||||||
| 4. Others | 89,141,412 | 89,141,412 | |||||||||||
| (III) Profit distribution | -207,533,556 | -207,533,556 | |||||||||||
| 1. Appropriations to surplus reserves | |||||||||||||
| 2. Appropriations to general risk provisions | |||||||||||||
| 3. Appropriations to owners (or shareholders) | -207,533,556 | -207,533,556 | |||||||||||
| 4. Others |
| (IV) Internal carry-forward of owners’ equity | |||||||||||||
| 1. New increase of capital (or share capital ) from capital public reserves | |||||||||||||
| 2. New increase of capital (or share capital) from surplus reserves | |||||||||||||
| 3. Surplus reserves for making up losses | |||||||||||||
| 4. Others | |||||||||||||
| (V) Specific reserve | -2,609,813 | -2,609,813 | |||||||||||
| 1. Withdrawn for the period | 3,922,869 | 3,922,869 | |||||||||||
| 2. Used in the period | 6,532,682 | 6,532,682 | |||||||||||
| (VI) Others | |||||||||||||
| IV. Balance at the end of this term | 2,075,335,560 | 1,349,953,977 | 3,577,707 | 3,233,660 | 888,850,230 | 3,762,408,180 | 327,569,059 | 8,410,928,373 |
Amount of Last Year
Unit: RMB
| Items | Amount of the same period of last year | ||||||||||||
| Owners’ Equity Attributable to the Parent Company | Minority shareholders’ Total of owners’ equity | Total of owners’ equity | |||||||||||
| Share capital | Other equity instruments | Capital reserve | Less: treasury stock | Other comprehensive income | Special reserves | Surplus reserves | Common risk provision | Retained profit | |||||
| Preferred share | Perpetual capital securities | Others | |||||||||||
| I. Balance at the end of the previous year | 2,075,335,560 | 1,261,391,272 | 2,967,772 | 15,437,498 | 859,122,330 | 3,431,556,565 | 3,080,480 | 7,648,891,477 | |||||
| Plus: change of accounting policy | |||||||||||||
| Correction of errors in previous periods | |||||||||||||
| Business combination under the same control | |||||||||||||
| Others | |||||||||||||
| II. Balance at the beginning of current year | 2,075,335,560 | 1,261,391,272 | 2,967,772 | 15,437,498 | 859,122,330 | 3,431,556,565 | 3,080,480 | 7,648,891,477 | |||||
| III. Amount of change in current term (“-“ for decrease) | -689,075 | 1,686,199 | -9,594,025 | 29,727,900 | 145,393,008 | 317,195,535 | 483,719,542 | ||||||
| (I) Total amount of the | 1,686,199 | 797,721,576 | 6,504,948 | 805,912,723 | |||||||||
| comprehensive income | |||||||||||||
| (II) Capital paid in and reduced by owners | 402,262 | 313,771,067 | 314,173,329 | ||||||||||
| 1. Common shares invested by the shareholders | 313,628,750 | 313,628,750 | |||||||||||
| 2. Capital invested by the owners of other equity instruments | |||||||||||||
| 3. Amounts of share-based payments recognized in owners’ equity | 402,262 | 142,317 | 544,579 | ||||||||||
| 4. Others | |||||||||||||
| (III) Profit distribution | 29,727,900 | -652,328,568 | -622,600,668 | ||||||||||
| 1. Appropriations to surplus reserves | 29,727,900 | -29,727,900 | |||||||||||
| 2. Appropriations to general risk provisions | |||||||||||||
| 3. Appropriations to owners (or shareholders) | -622,600,668 | -622,600,668 | |||||||||||
| 4. Others | |||||||||||||
| (IV) Internal carry-forward of |
| owners’ equity | |||||||||||||
| 1. New increase of capital (or share capital ) from capital public reserves | |||||||||||||
| 2. New increase of capital (or share capital) from surplus reserves | |||||||||||||
| 3. Surplus reserves for making up losses | |||||||||||||
| 4. Others | |||||||||||||
| (V) Specific reserve | -9,594,025 | -9,594,025 | |||||||||||
| 1. Withdrawn for the period | 6,930,650 | 6,930,650 | |||||||||||
| 2. Used in the period | 16,524,675 | 16,524,675 | |||||||||||
| (VI) Others | -1,091,337 | -3,080,480 | -4,171,817 | ||||||||||
| IV. Balance at the end of this term | 2,075,335,560 | 1,260,702,197 | 4,653,971 | 5,843,473 | 888,850,230 | 3,576,949,573 | 320,276,015 | 8,132,611,019 |
8. Statement of Change in Owners’ Equity (Parent Co.)
Amount of the Current Term
Unit: RMB
| Items | Amount of the Current Term | ||||||||||
| Share capital | Other equity instruments | Capital reserve | Less: treasury stock | Other comprehensive income | Special reserves | Surplus reserves | Retained profit | Total of owners’ equity | |||
| Preferred share | Perpetual capital securities | Others | |||||||||
| I. Balance at the end of the previous | 2,075,335,560 | 1,405,529,511 | 903,395,590 | 451,182,587 | 4,835,443,248 | ||||||
| Plus: change of accounting policy | |||||||||||
| Correction of errors in previous periods | |||||||||||
| Others | |||||||||||
| II. Balance at the beginning of current year | 2,075,335,560 | 1,405,529,511 | 903,395,590 | 451,182,587 | 4,835,443,248 | ||||||
| III. Amount of change in current term (“-“ for decrease) | 89,141,412 | -274,911,079 | -185,769,667 | ||||||||
| (I) Total amount of the comprehensive income | -67,377,523 | -67,377,523 | |||||||||
| (II) Capital paid in and reduced by owners | 89,141,412 | 89,141,412 | |||||||||
| 1. Common shares invested by the shareholders | |||||||||||
| 2. Capital invested by the owners of other equity instruments | |||||||||||
| 3. Amounts of share-based payments recognized in owners’ equity | |||||||||||
| 4. Others | 89,141,412 | 89,141,412 | |||||||||
| (III) Profit distribution | -207,533,556 | -207,533,556 | |||||||||
| 1. Appropriations to surplus reserves | |||||||||||
| 2. Appropriations to general risk | -207,533,556 | -207,533,556 | |||||||||
| 3. Others | |||||||||||
| (IV) Internal carry-forward of owners’ equity | |||||||||||
| 1. New increase of capital (or share capital ) from capital public reserves | |||||||||||
| 2. New increase of capital (or share capital) from surplus reserves | |||||||||||
| 3. Surplus reserves for making up losses | |||||||||||
| 4. Others | |||||||||||
| (V) Specific reserve | |||||||||||
| 1. Withdrawn for the period | |||||||||||
| 2. Used in the period | |||||||||||
| (VI) Others | |||||||||||
| IV. Balance at the end of this term | 2,075,335,560 | 1,494,670,923 | 903,395,590 | 176,271,508 | 4,649,673,581 |
Amount of Last Year
Uniit: RMB
| Items | Amount of the same period of last year | ||||||||||
| Share capital | Other equity instruments | Capital reserve | Less: treasury stock | Other comprehensive income | Special reserves | Surplus reserves | Retained profit | Total of owners’ equity | |||
| Preferred share | Perpetual capital securities | Others | |||||||||
| I. Balance at the end of the previous | 2,075,335,560 | 1,404,803,407 | 873,667,690 | 806,232,151 | 5,160,038,808 | ||||||
| Plus: change of accounting policy | |||||||||||
| Correction of errors in previous periods | |||||||||||
| Others | |||||||||||
| II. Balance at the beginning of current year | 2,075,335,560 | 1,404,803,407 | 873,667,690 | 806,232,151 | 5,160,038,808 | ||||||
| III. Amount of change in current term (“-“ for decrease) | 726,104 | 29,727,900 | -355,049,564 | -324,595,560 | |||||||
| (I) Total amount of the comprehensive income | 297,279,004 | 297,279,004 | |||||||||
| (II) Capital paid in and reduced by owners | |||||||||||
| 1. Common shares invested by the shareholders | |||||||||||
| 2. Capital invested by the owners of other equity instruments | |||||||||||
| 3. Amounts of share-based payments recognized in owners’ equity | |||||||||||
| 4. Others | |||||||||||
| (III) Profit distribution | 29,727,900 | -652,328,568 | -622,600,668 | ||||||||
| 1. Appropriations to surplus reserves | 29,727,900 | -29,727,900 | |||||||||
| 2. Appropriations to general risk | -622,600,668 | -622,600,668 | |||||||||
| 3. Others | |||||||||||
| (IV) Internal carry-forward of owners’ equity | |||||||||||
| 1. New increase of capital (or share capital ) from capital public reserves | |||||||||||
| 2. New increase of capital (or share capital) from surplus reserves | |||||||||||
| 3. Surplus reserves for making up losses | |||||||||||
| 4. Others | |||||||||||
| (V) Specific reserve | |||||||||||
| 1. Withdrawn for the period | |||||||||||
| 2. Used in the period | |||||||||||
| (VI) Others | 726,104 | 726,104 | |||||||||
| IV. Balance at the end of this term | 2,075,335,560 | 1,405,529,511 | 903,395,590 | 451,182,587 | 4,835,443,248 |
III. Basic Information of the Company
CSG Holding Co Ltd (the “Company”) was incorporated in September 1984, known as China South Glass Company, as a jointventure enterprise by Hong Kong China Merchants Shipping Co., LTD (香港招商局轮船股份有限公司), Shenzhen BuildingMaterials Industry Corporation (深圳建筑材料工业集团公司), China North Industries Corporation (中国北方工业深圳公司)and Guangdong International Trust and Investment Corporation (广东国际信托投资公司). The Company was registered in
Shenzhen, Guangdong Province of the People's Republic of China and its headquarter locates in Guangdong Province of thePeople's Republic of China. The Company issued RMB-dominated ordinary shares and foreign shares publicly in October 1991and January 1992 respectively, and listed on Shenzhen Stock Exchange on February 1992. On 31 December 2015, theregistered capital was RMB 2,075,335,560, with nominal value of RMB1 per share.
The Company and its subsidiaries (collectively referred to as the “Group”) are mainly engaged in the manufacture and sales of
glass and energy meterials with glass as the medium, the manufacture and sales of polysilicon and solar module, theconstruction and operation of photovoltaic plant and the manufacture and sales of electronic glass and display.
The financial statements were authorised for issue by the board of directors on 22 August 2017.Details of major subsidiaries that were included in the financial statements in the period please refer to the Note. The newsubsidiary included in the consolidation scope in the period was Zhijiang CSG PV New Energy Co., Ltd. (hereinafter referredto as "Zhijiang PV Company").
IV. Basis of the preparation of financial statements
1. Basis of the preparation
The financial statements are prepared in accordance with the Accounting Standard for Business Enterprises - Basic Standard,and the specific accounting standards and other relevant regulations issued by the Ministry of Finance on 15 February 2006 and
in subsequent periods (hereafter collectively referred to as “the Accounting Standard for Business Enterprises” or “CAS”), and“Information Disclosure Rule No. 15 for Companies with Public Traded Securities - Financial Reporting General Provision”
issued by China Security Regulatory Commission.
2. Going concern
As at 30 June 2017, the Group had net current liabilities of about RMB 3.385 billion and committed capital expenditure of RMB 390million. The directors of the Company have made an assessment that the Group has continued for many years and is expected tocontinue to generate sufficient cash flow from operating activities over the next 12 months. As at 30 June 2017, the net cash inflowfrom operation activities was approximately RMB 1.02 billion. The Group has maintained good relationship with banks so theGroup has been able to successfully get adequate financing credit; As at 30 June 2017, the Group had unutilised internal bankingfacilities of approximately RMB 3.9 billion, In addition, the major shareholder of the Group is willing to provide the Group withinterest-free loans of RMB 2 billion for the Group or through its designated parties. As of the date of this report, the shareholder hasprovided RMB 1.35 billion of interest-free loans. In addition, the Group also has other available financing channels, such as
short-term financing bills, ultra-short –term financing notes, and medium term notes. The directors are of view that the abovebanking facilities and the support from the shareholder can meet the funding requirements of the Group’s debt servicing and capital
commitment. Accordingly, the directors of the Company had adopted the going concern basis in the preparation of this financialstatement of the Company and the Group.
V. Significant accounting policies and accounting estimates
1. Statement of compliance with the Accounting Standards for Business Enterprises
The financial statements of the Company for the first half year of 2017 truly and completely present the financial position as of 30June 2017 and the operating results, cash flows and other information for the first half year of 2017 of the Group and the Company incompliance with the Accounting Standards for Business Enterprises.
2. Accounting period
The Company’s accounting year starts on 1 January and ends on 31 December.
3. Operating cycle
The Company’s operating cycle starts on 1 January and ends on 31 December.
4. Recording currency
The recording currency is Renminbi (RMB).
5. Accounting process method of Business combinations under common and different controlling.(a)Business combinations involving entities under common control
The assets and liabilities that the combining party obtains in a business combination shall be measured on the basis of their carryingamount in the combined party. As for the balance between the carrying amount of the net assets obtained by the combining party and thecarrying amount of the consideration paid by it, the additional paid-in capital shall be adjusted. If the additional paid-in capital is notsufficient to be offset, the retained earnings shall be adjusted. Costs directly attributable to business combination are recorded into theprofits and losses once incurred. Transaction costs attributed to issue equity securities or debt securities for business combination arerecorded into initial recognition amounts of equity securities or debt securities.
(b) Business combinations involving entities not under common control
The cost of combination and identifiable net assets obtained by the acquirer in a business combination are measured at the fair value at
the acquisition date. The excess of the cost of acquisition over the Group’s share of the fair value of the identifiable net assets acquired isrecorded as goodwill. If the cost of acquisition is less than the Group’s share of fair value of the net assets of the subsidiary acquired, the
difference is recognised directly in the income statement. Costs directly attributable to business combination are included in the profitsand losses once incurred. Transaction costs attributed to issue equity securities or debt securities for business combination are recordedinto initial recognition amounts of equity securities or debt securities.
6. Basis of preparation of consolidated financial statements
The consolidated financial statements comprise the financial statements of the Company and all of its subsidiaries.
Subsidiaries are consolidated from the date when the Group obtains control and are de-consolidated from the date when control ceases.
For a subsidiary that is acquired in a business combination involving enterprises under common control, it is included in the consolidatedfinancial statements from the date when it, together with the Company, comes under common control of the ultimate controlling party.The portion of the net profits realised before the combination date is presented separately in the consolidated income statement.
When preparing the consolidated financial statements, if the accounting policies and the accounting periods of the Company andsubsidiaries are inconsistent, the financial statements of the subsidiaries are adjusted in accordance with the accounting policies and theaccounting period of the Company. For subsidiaries acquired from business combinations involving enterprises not under commoncontrol, the individual financial statements of the subsidiaries are adjusted based on the fair value of the identifiable net assets at theacquisition date.
All significant intra-group balances, transactions and unrealised profits are eliminated in the consolidated financial statements. The
portion of subsidiaries’ equity and the portion of a subsidiaries’ net profits and losses and comprehensive incomes for the period not
attributable to Company are recognised as minority interests and presented separately in the consolidated financial statements underequity, net profits and total comprehensive income respectively. Unrealized profits and losses resulting from the sale of assets by theCompany to the subsidiary fully eliminate the net profits attributable to equity holders of the parent; unrealized profits and lossesresulting from the sale of assets by the subsidiary to the Company are eliminated and allocated between net profit attributable to ownersof the parent and minority interests in accordance with the allocation proportion of the Company in the subsidiary. Unrealized profits andlosses resulting from the sale of assets by one subsidiary to another are eliminated and allocated between net profit attributable to ownersof the parent and minority interests in accordance with the allocation proportion of the parent in the subsidiary.
If the accounting treatment of a transaction which considers the Group as an accounting entity is different from that considers theCompany or its subsidiaries as an accounting entity, it is adjusted from the perspective of the Group.
7. Confirmation standard of cash and cash equivalent
Cash and cash equivalents comprise cash on hand, deposits that can be readily drawn on demand, and short-term and highly liquidinvestments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.
8. Translating of foreign currency operations and foreign currency report form
(a) Foreign currency transactions
Foreign currency transactions are translated into RMB using the exchange rates prevailing at the dates of the transactions.
At the balance sheet date, monetary items denominated in foreign currencies are translated into RMB using the spot exchange rates onthe balance sheet date. Exchange differences arising from these translations are recognised in profit or loss for the current period, exceptfor those attributable to foreign currency borrowings that have been taken out specifically for the acquisition or construction ofqualifying assets, which are capitalised as part of the cost of those assets. Non-monetary items denominated in foreign currencies that aremeasured at historical costs are translated at the balance sheet date using the spot exchange rates at the date of the transactions. The effectof exchange rate changes on cash is presented separately in the cash flow statement.
(b) Translation of foreign currency financial statements
The asset and liability items in the balance sheets for overseas operations are translated at the spot exchange rates on the balance sheet
date. Among the owners’ equity items, the items other than “undistributed profits” are translated at the spot exchange rates of the
transaction dates. The income and expense items in the income statements of overseas operations are translated at the spot exchange rates
of the transaction dates. The differences arising from the above translation are presented separately in the owners’ equity. The cash flows
of overseas operations are translated at the spot exchange rates on the dates of the cash flows. The effect of exchange rate changes oncash is presented separately in the cash flow statement.
9. Financial instruments
(a) Financial assets(i) Classifications of financial assetsFinancial assets are classified into the following categories at initial recognition: financial assets at fair value through profit or loss,receivables, available-for-sale financial assets and held-to-maturity investments. The classification of financial assets depends on the
Group’s intention and ability to hold the financial assets. The Group has no financial assets at fair value through profit or loss and
held-to-maturity investments for 2014.
Receivables
Receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Receivablescomprise notes receivable, accounts receivable and other receivables.
Available-for-sale financial assets
Available-for-sale financial assets are non-derivative financial assets that are either designated in this category or not classified in any ofthe other categories at initial recognition. Available-for-sale financial assets are included in other current assets on the balance sheet ifmanagement intends to dispose of them within 12 months after the balance sheet date.
(ii) Recognition and measurement
Financial assets are recognised at fair value on the balance sheet when the Group becomes a party to the contractual provisions of thefinancial instrument. The related transaction costs that are attributable to the acquisition of receivables and available-for-sale financialassets are included in their initial recognition amounts.
Available-for-sale financial assets are subsequently measured at fair value. Investments in equity instruments are measured at cost whenthey do not have a quoted market price in an active market and whose fair value cannot be reliably measured. Receivables are measuredat amortised cost using the effective interest method.
Gains or losses arising from change in fair value of available-for-sale financial assets are recognised directly in equity, except forimpairment losses and foreign exchange gains and losses arising from translation of monetary financial assets. When such financialassets are derecognised, the cumulative gains or losses previously recognised directly into equity are recycled into profit or loss for thecurrent period. Interests on available-for-sale investments in debt instruments calculated using the effective interest method during theperiod in which such investments are held and cash dividends declared by the investee on available-for-sale investments in equityinstruments are recognised as investment income, which is recognised in profit or loss for the period.
(iii) Impairment of financial assets
The Group assesses the carrying amounts of financial assets at each balance sheet date. If there is objective evidence that a financial assetis impaired, an impairment loss is provided for.
Objective evidence indicating impairment of financial assets refers to the matter that actually occurs after the initial recognition offinancial assets, it will affect estimated future cash flows of financial assets, and its impact can be reliably measured.
Objective evidence which indicates the occurrence of impairment for available-for-sale equity instruments includes significant ornon-temporary decrease of fair value of equity instruments investment. The Group conducts individual inspection on eachavailable-for-sale equity instruments investment at balance sheet date, if the fair value of the available-for-sale equity instrument is lessthan its initial investment cost for more than 50% (including 50%) or less than its initial investment cost continually for more than 1 year,that means impairment incurred; if the fair value of the available-for-sale equity instrument is less than its initial investment cost for morethan 20% (including 20%) but has not reached 50%, the Group will comprehensively consider other factors such as price volatility todetermine whether the equity instrument investment has been impaired. The Group calculates the initial investment cost of initialavailable-for-sale equity instruments investment using the weighted average method.
When an impairment loss on a financial asset carried at amortised cost has occurred, the amount of loss is provided for at the difference
between the asset’s carrying amount and the present value of its estimated future cash flows (excluding future credit losses that have not
been incurred). If there is objective evidence that the value of the financial asset recovered and the recovery is related objectively to anevent occurring after the impairment was recognised, the previously recognised impairment loss is reversed and the amount of reversal isrecognised in profit or loss.
If an impairment loss on available-for-sale financial assets measured at fair value is incurred, the cumulative losses arising from thedecline in fair value that had been recognised directly in shareholders' equity are transferred out from equity and into impairment loss.For an investment in debt instrument classified as available-for-sale on which impairment losses have been recognised, if, in asubsequent period, its fair value increases and the increase can be objectively related to an event occurring after the impairment loss wasrecognised in profit or loss, the previously recognised impairment loss is reversed into profit or loss for the current period. For aninvestment in an equity instrument classified as available-for-sale on which impairment losses have been recognised, the increase in itsfair value in a subsequent period is recognised directly in equity.
(iv) Derecognition of financial assets
Financial assets are derecognised when: i) the contractual rights to receive the cash flows from the financial assets have expired; or ii) allsubstantial risks and rewards of ownership of the financial assets have been transferred; or iii) the control over the financial asset hasbeen waived even if the Group does not transfer or retain nearly all of the risks and rewards relating to the ownership of a financial asset.
On derecognition of a financial asset, the difference between the carrying amount and the sum of the consideration received and thecumulative changes in fair value that had been recognised directly in owner's equity, is recognised in profit or loss.
(b) Financial liabilities
Financial liabilities are classified into two categories at initial recognition: financial liabilities at fair value through profit or loss and otherfinancial liabilities. Other financial liabilities in the Group mainly include payables, borrowings and bonds payable.Changes in fair value of financial liabilities at fair value through profit or loss are recognized in the income statement.
Payables comprise accounts payable, notes payable and other payables, which are recognised initially at fair value and measuredsubsequently at amortised cost using the effective interest method.
Borrowings and bonds payable are recognised initially at fair value, net of transaction costs incurred, and subsequently measured atamortised cost using the effective interest method.
Other financial liabilities within one year (including one year) is presented as current liabilities, while non-current financial liabilities duewith one year (including one year) is reclassified as non-current liabilities due within one year. Others are presented as non-currentliabilities.
A financial liability (or a part of a financial liability) is derecognised when all or part of the obligation is extinguished. The differencebetween the carrying amount of a financial liability (or a part of financial liability) extinguished and the consideration paid is recognisedin the income statement.
(c) Determination of fair value of financial instruments
The fair value of a financial instrument that is traded in an active market is determined at the quoted price in the active market. The fairvalue of a financial instrument that is not traded in an active market is determined by using a valuation technique. During valuation, theGroup adopts a valuation technique suitable for current situation, which is supported by sufficient available data and other information,chooses the inputs consistent with the feature of assets or liabilities considered in the transaction thereof with market participants, anduses related observable inputs in preference to the greatest extent. Unobservable inputs are used when it is unable to obtain or isinfeasible for related observable inputs.
10. Recognition standard impairment and receivables(1) Bad debt provision on receivable accounts with major amount individually
| Basis of recognition or standard amount of Receivables that are individually significant | The basis or amount for individually significant receivables is individually greater than 20 million. |
| Basis of bad debt provision | Receivables that are individually significant are subject to separate impairment assessment. A provision for impairment of the receivable is recognized if there is objective evidence that the Group will not be able to collect the full amounts according to the original terms. |
(2) Receivables that are provided for provision based on their credit risk characteristics
| Name of the portfolio | Basis of bad debt provision |
| Portfolio 1 | according to percentage of balance method |
| Portfolio 2 | according to percentage of balance method |
Accounts on aging analysis basis in the portfolio:
□Applicable √Non-applicable
Accounts on percentage basis in the portfolio:
√Applicable □Non-applicable
| Name of the portfolio | Percentage of provision for accounts receivable(%) | Percentage of provision for other receivables(%) |
| Portfolio 1 | 2% | 2% |
| Portfolio 2 | 2% | 2% |
Accounts on other basis in the portfolio:
□Applicable √Non-applicable
(3) The method of provision for impairment of receivables that are individually significant
| Reason for providing bad debt individually: | A provision for impairment of the receivable is recognized if there is objective evidence that the Group will not be able to collect the full amounts according to the original terms. |
| Basis of bad debt provision: | The provision for impairment of the receivable is established at the difference between the carrying amount of the receivable and the present value of estimated future cash flows. |
11. Inventories
(a)ClassificationInventories refer to manufacturing sector, including raw materials, work in progress, finished goods and turnover materials, and aremeasured at the lower of cost and net realisable value.
(b)Inventory costing methodCost is determined using the weighted average method. The cost of finished goods and work in progress comprise raw materials,direct labour and systematically allocated production overhead based on the normal production capacity.
(c)Amortisation methods of low value consumables and packaging materialsTurnover materials include low value consumables and packaging materials, which are expensed when issued.
(d)The determination of net realisable value and the method of provision for impairment of inventoriesProvision for decline in the value of inventories is determined at the excess amount of the carrying amounts of the inventories overtheir net realisable value. Net realisable value is determined based on the estimated selling price in the ordinary course of business,less the estimated costs to completion and estimated costs necessary to make the sale and related taxes.
(e)The Group adopts the perpetual inventory system.
12. Classified as assets held for sale
A non-current asset or a disposal group is classified as held for sale when all of the following conditions are satisfied: (1) the non-current
asset or the disposal group is available for immediate sale in its present condition subject only to terms that are usual and customary forsales of such non-current asset or disposal group; (2) the group has signed with other parties legally binding sale agreement and approvalhas been obtained, is expected to the sale will be completed within one year.
Non-current assets (except for financial assets and deferred tax assets) that meet the recognition criteria for held for sale are recognised atthe amount equal to the lower of the fair value less costs to sell and the carrying amount. The difference between fair value less costs to
sell and the carrying amount should be presented as impairment loss.
Such non-current assets and assets included in disposal groups as classified as held for sale are accounted for as current assets; whileliabilities included in disposal groups classified as held for sale are accounted for as current liabilities, which are presented separately inthe balance sheet.
A discontinued operation is a component of the Group that either has been disposed of or is classified as held for sale, and is separatelyidentifiable operationally and for financial reporting purposes, and satisfies one of the following conditions: (1) represents a separatemajor line of business or geographical area of operations; (2) is part of a single coordinated plan to dispose of a separate major line ofbusiness or geographical area of operations; and (3) is a subsidiary acquired exclusively with a view to resale.Earnings from discontinued operations stated in the income statement include operating profit and loss and disposal gains and losses.
13. Long-term equity investments
Long-term equity investments comprise the Company’s long-term equity investments in its subsidiaries, and the Group’s long-term
equity investments in its associates.
Subsidiaries are the investees over which the Company is able to exercise control. Associates are the investees that the Group hassignificant influence on their financial and operating policies.
Investments in subsidiaries are measured using the cost method in the Company’s financial statements, and adjusted by using the
equity method when preparing the consolidated financial statements. Investments in associates are accounted for using the equitymethod. Long-term equity investments where the Group does not have control, joint control or significant influence over theinvestees, and which are not quoted in an active market and whose fair value cannot be reliably measured are measured using thecost method.
a. Initial recognition
For long-term equity investments formed in business combination: when obtained from business combinations involving entitiesunder common control, the long-term equity investment is stated at carrying amount of equity for the combined parties at the timeof merger; when the long-term equity investment obtained from business combinations involving entities not under commoncontrol, the investment is measured at combination cost.
For long-term equity investments not formed in business combination: the one paid by cash is initially measured at actual purchaseprice; the long-term investment obtained by issuing equity securities is stated at fair value of equity securities as initial investmentcost.
b. Subsequent measurement and recognition method of profit or loss
Long-term equity investments accounted for using the cost method are measured at initial investment cost. Cash dividend or profitdistribution declared by the investees is recognised as investment income in profit or loss.
For long-term equity investments accounted for using the equity method, where the initial investment cost exceeds the Group’sshare of the fair value of the investee’s identifiable net assets at the time of acquisition, the investment is initially measured at cost.Where the initial investment cost is less than the Group’s share of the fair value of the investee’s identifiable net assets at the time
of acquisition, the difference is included in profit or loss for the current period and the cost of the long-term equity investment isadjusted upwards accordingly.
For long-term equity investments accounted for using the equity method, the Group recognises the investment income according toits share of net profit or loss of the investee. The Group discontinues recognising its share of the net losses of an investee after thecarrying amounts of the long-term equity investment together with any long-term interests that in substance form part of the
investor’s net investment in the investee are reduced to zero. However, if the Group has obligations for additional losses and the
criteria with respect to recognition of provisions under the accounting standards on contingencies are satisfied, the Group continues
recognising the investment losses and the provisions. For changes in owners’ equity of the investee other than those arising from its
net profit or loss, its proportionate share is directly recorded into capital surplus, provided that the proportion of shareholding of the
Group in the investee remains unchanged. The carrying amount of the investment is reduced by the Group’s share of the profit
distribution or cash dividends declared by an investee. The unrealised profits or losses arising from the transactions between the
Group and its investees are eliminated in proportion to the Group’s equity interest in the investees, based on which the investment
gain or losses are recognised. Any losses resulting from transactions between the Group and its investees attributable to assetimpairment losses are not eliminated.
c. Definition of control, joint control and significant influence over the investees
The term "control" refers to the power in the investees, to obtain variable returns by participating in the related business activitiesof the investees, and the ability to affect the returns by exercising its power over the investees.
The term "significant influence" refers to the power to participate in the formulation of financial and operating policies of anenterprise, but not the power to control, or jointly control, the formulation of such policies with other parties.
d. Impairment of long-term equity investments
The carrying amount of long-term equity investments in subsidiaries and associates is reduced to the recoverable amount when therecoverable amount is less than the carrying amount.
14. Fixed assets
(1) Recognition and initial measurementFixed assets comprise buildings, machinery and equipment, motor vehicles and others. Fixed assets are recognised when it isprobable that the related economic benefits will flow to the Group and the costs can be reliably measured. Fixed assets purchased or
constructed by the Group are initially measured at cost at the time of acquisition.Subsequent expenditures incurred for a fixed assetare included in the cost of the fixed asset when it is probable that the associated economic benefits will flow to the Group and therelated cost can be reliably measured. The carrying amount of the replaced part is derecognised. All the other subsequentexpenditures are recognised in profit or loss in the period in which they are incurred.
(2) Depreciation
| Categories | Depreciation method | Depreciation age (year) | Salvage Value Rate (%) | Annual depreciation rate (%) |
| Houses & buildings | straight-line method | 20–35 | 5% | 2.71% ~ 4.75% |
| Equipment & machinery | straight-line method | 8–15 | 5% | 4.75%~11.88% |
| Transportation equipment and others | straight-line method | 5–8 | 0% | 12.50%~20% |
15. Construction in progress
Construction in progress is measured at actual cost. Actual cost comprises construction costs, installation costs, borrowing coststhat are eligible for capitalisation and other costs necessary to bring the fixed assets ready for their intended use. Actual costalso includes net of trial production cost and trial production income before construction in progress is put into production.
Construction in progress is transferred to fixed assets when the assets are ready for their intended use, and depreciation beginsfrom the following month.
The carrying amount of construction in progress is reduced to the recoverable amount when the recoverable amount is belowthe carrying amount.
16. Borrowing costs
The borrowing costs that are directly attributable to the acquisition and construction of a fixed asset that needs a substantiallylong period of time for its intended use commence to be capitalised and recorded as part of the cost of the asset whenexpenditures for the asset and borrowing costs have been incurred, and the activities relating to the acquisition and constructionthat are necessary to prepare the asset for its intended use have commenced. The capitalisation of borrowing costs ceases whenthe asset under acquisition or construction becomes ready for its intended use and the borrowing costs incurred thereafter arerecognised in profit or loss for the current period. Capitalisation of borrowing costs is suspended during periods in which theacquisition or construction of a fixed asset is interrupted abnormally and the interruption lasts for more than 3 months, until theacquisition or construction is resumed.
For the specific borrowings obtained for the acquisition or construction of a fixed asset qualifying for capitalisation, the amountof borrowing costs eligible for capitalisation is determined by deducting any interest income earned from depositing the unusedspecific borrowings in the banks or any investment income arising on the temporary investment of those borrowings during thecapitalisation period.
For the general borrowings obtained for the acquisition or construction of a fixed asset qualifying for capitalisation, the amount of
borrowing costs eligible for capitalisation is determined by applying the weighted average effective interest rate of generalborrowings, to the weighted average of the excess amount of cumulative expenditures on the asset over the amount of specificborrowings. The effective interest rate is the rate at which the estimated future cash flows during the period of expected duration ofthe borrowings or applicable shorter period are discounted to the initial amount of the borrowings.
17. Intangible assets(1) Pricing of intangible assets
Intangible assets including land use rights and, patents and exploitation rights, intangible assets are measured at cost.
(a)Land use rights
Land use rights are amortised on the straight-line basis over their approved use period of 30 to 70 years. If the acquisition costs of theland use rights and the buildings located thereon cannot be reasonably allocated between the land use rights and the buildings, all of theacquisition costs are recognised as fixed assets.
(b)Patents
Patents are amortised on a straight-line basis over the patent protection period of 10 years as stipulated by the laws.
(c)Exploitation rights
Exploitation rights are amortized on a straight-line basis over permitted exploitation periods of 10 years set out on the exploitationcertificate.
(d)Periodical review of useful life and amortisation method
For an intangible asset with a finite useful life, review of its useful life and amortisation method is performed at each year-end, withadjustment made as appropriate.
(e) If the recoverable amount of intangible asset is less than its carrying value, the carrying value is deducted to recoverable amount.
(2) Research and development
The expenditure on an internal research and development project is classified into expenditure on the research phase and expenditure onthe development phase based on its nature and whether there is material uncertainty that the research and development activities canform an intangible asset at end of the project.
Expenditure on the research phase related to planned survey, evaluation and selection for research on manufacturing technique isrecognised in profit or loss in the period in which it is incurred. Prior to mass production, expenditure on the development phase relatedto the design and testing phase in regards to the final application of manufacturing technique is capitalised only if all of the followingconditions are satisfied:
The development of manufacturing technique has been fully demonstrated by technical team;
The management has approved the budget for the development of manufacturing technique;There exists research and analysis of pre-market research explaining that products manufactured with such technique are capable ofmarketing;There is sufficient technical and capital to support the development of manufacturing technique and subsequent mass production; andthe expenditure on manufacturing technique development can be reliably gathered.
Other development expenditures that do not meet the conditions above are recognised in profit or loss in the period in which they areincurred. Development costs previously recognised as expenses are not recognised as an asset in a subsequent period. Capitalisedexpenditure on the development phase is presented as development costs in the balance sheet and transferred to intangible assets at thedate that the asset is ready for its intended use.
18. Impairment of long-term assets
Fixed assets, construction in progress, intangible assets with finite useful lives and long-term equity investments in joint ventures andassociates are tested for impairment if there is any indication that the assets may be impaired at the balance sheet date; intangible assetsnot ready for their intended use are tested at least annually for impairment, irrespective of whether there is any indication that they maybe impaired. If the result of the impairment test indicates that the recoverable amount of an asset is less than its carrying amount, a
provision for impairment and an impairment loss are recognised for the amount by which the asset’s carrying amount exceeds itsrecoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and the present value of the future
cash flows expected to be derived from the asset. Provision for asset impairment is determined and recognised on the individual assetbasis. If it is not possible to estimate the recoverable amount of an individual asset, the recoverable amount of a group of assets to whichthe asset belongs is determined. A group of assets is the smallest group of assets that is able to generate independent cash inflows.
Goodwill that is separately presented in the financial statements is tested at least annually for impairment, irrespective of whether thereis any indication that it may be impaired. In conducting the test, the carrying value of goodwill is allocated to the related asset groups orgroups of asset groups which are expected to benefit from the synergies of the business combination. If the result of the test indicatesthat the recoverable amount of an asset group or group of asset groups, including the allocated goodwill, is lower than its carryingamount, the corresponding impairment loss is recognised. The impairment loss is first deducted from the carrying amount of goodwillthat is allocated to the asset group or group of asset groups, and then deducted from the carrying amounts of other assets within the assetgroups or groups of asset groups in proportion to the carrying amounts of assets other than goodwill.
Once the above asset impairment loss is recognised, it will not be reversed for the value recovered in the subsequent periods.
19. Long-term prepaid expenses
Long-term prepaid expenses include the expenditures that have been incurred but should be recognised as expenses over more than oneyear in the current and subsequent periods. Long-term prepaid expenses are amortised on the straight-line basis over the expectedbeneficial period and are presented at actual expenditure net of accumulated amortisation.
20. Employee benefits
(1) Short-term employee benefits accounting methodShort-term employee benefits include employee wages or salaries, bonus, allowances and subsidies, staff welfare, premiums orcontributions on medical insurance, work injury insurance and maternity insurance, housing funds, union running costs and employeeeducation costs, short-term paid absences. The employee benefit liabilities are recognised in the accounting period in which the service
is rendered by the employees, with a corresponding charge to the profit or loss for the current period or the cost of relevant assets.Employee benefits which are non-monetary benefits shall be measured at fair value.
(2)Post-employment benefits accounting method
The Group classifies post-employment benefit plans as either defined contribution plans or defined benefit plans. Defined contributionplans are post-employment benefit plans under which the Group pays fixed contributions into a separate fund and will have noobligation to pay further contributions; and Defined benefit plans are post-employment benefit plans other than defined contributionplans. During the reporting period, the Group's post-employment benefits mainly include basic pensions and unemployment insurance,both of which belong to the defined contribution plans.
Basic pensions
The Group’s employees participate in the basic pension plan set up and administered by local authorities of Ministry of Human
Resource and Social Security. Monthly payments of premiums on the basic pensions are calculated according to prescribed bases andpercentage by the relevant local authorities. When employees retire, the relevant local authorities are obliged to pay the basic pensionsto them. The amounts based on the above calculations are recognised as liabilities in the accounting period in which the service hasbeen rendered by the employees, with a corresponding charge to the profit or loss for the current period or the cost of relevant assets.
(3)Termination benefits accounting method
The Group provides compensation for terminating the employment relationship with employees before the end of the employmentcontracts or as an offer to encourage employees to accept voluntary redundancy before the end of the employment contracts. The Grouprecognises a liability arising from compensation for termination of the employment relationship with employees, with a correspondingcharge to profit or loss at the earlier of the following dates: 1) when the Group cannot unilaterally withdraw the offer of terminationbenefits because of an employment termination plan or a curtailment proposal; 2) when the Group recognises costs or expenses relatedto the restructuring that involves the payment of termination benefits.
The termination benefits expected to be paid within one year since the balance sheet date are classified as current liabilities.
21. Provisions
Business restructuring, provisions for product warranties, onerous contracts etc. are recognised when the Group has a present obligation,it is probable that an outflow of economic benefits will be required to settle the obligation, and the amount of the obligation can bemeasured reliably.A provision is initially measured at the best estimate of the expenditure required to settle the related present obligation. Factorssurrounding a contingency, such as the risks, uncertainties and the time value of money, are taken into account as a whole in reachingthe best estimate of a provision. Where the effect of the time value of money is material, the best estimate is determined by discountingthe related future cash outflows. The increase in the discounted amount of the provision arising from passage of time is recognised asinterest expense.The carrying amount of provisions is reviewed at each balance sheet date and adjusted to reflect the current best estimate.
The provision expected to be paid within one year since the balance sheet date are classified as current liabilities.
22. Revenue recognition
The amount of revenue is determined in accordance with the fair value of the consideration received or receivable for the Sale of goods
and services in the ordinary course of the Group’s activities. Revenue is shown net of discounts, rebates and returns.
Revenue is recognised when the economic benefits associated with the transaction will flow to the Group, the related revenue can be
reliably measured, and the specific revenue recognition criteria have been met for each type of the Group’s activities as described
below:
(a)Sale of goods
The Group mainly sells glass, and products related to solar energy, new energy applications and electronic glass and display. Fordomestic sales, the Group delivers the products to a certain place specified in the contract. When the buyer takes over the goods, theGroup recognizes revenue. For export sales, the Group recognizes the revenue when it finished clearing goods for export and deliverthe goods on board the vessel, or when the goods are delivered to a certain place specified in the contract. For above sales, when thebuyer takes over the goods, the buyer has the right to sell the products, and should bear the risk of price fluctuation or goods damage(b)Rendering of services
Revenue is recognized for the rendering of service by the Group to external parties upon the completion of related service.
(c)Transfer of asset use rights
Interest income is recognized on a time-proportion basis using the effective interest method.
23. Government grants(1)Judgment basis and accounting method of government grants related to an asset
Government grants are the monetary asset the Group receives from the government for free, including tax refund, government subsidies,etc.
Grants from the government are recognised when there is a reasonable assurance that the grants will be received and the Group willcomply with all attached conditions. Monetary government grants are measured at the amounts received or receivable. Non-monetarygovernment grant are measured at fair value, if the fair value cannot be reliably obtained, it is measured at nominal amount.
Government grants related to an asset refer to the government assets which are obtained by enterprises for the purposes of purchase orconstruction of, or which form the long-term assets by other ways. Government grants related to income refers to government grantsother than those related to assets.
Government grants related to the assets are offset against the carrying amount of the underlying assets or recognized as deferred incomeand are accounted for in profit or loss in a reasonable and systematic manner within the useful life of the relevant assets.
(2) Judgment basis and accounting method of government grants related to income
Government grants related to income which are used to compensate for the related costs or losses during the subsequent period are
recognized as deferred income and are recognized in the current profit or loss or related expenses for the period of recognition of therelevant cost expense or loss. The relevant expenses or losses incurred, directly included in the current profits and losses or offset therelevant costs. Similar government grants use the same presentation. Government grants related to daily activities are incorporated intooperating profit, while those unrelated to daily activities are incorporated into non - operating income and expenditure.
25. Deferred tax assets and deferred tax liabilities
Deferred tax assets and deferred tax liabilities are calculated and recognised based on the differences arising between the tax bases ofassets and liabilities and their carrying amounts (temporary differences). Deferred tax asset is recognised for the deductible losses thatcan be carried forward to subsequent years for deduction of the taxable profit in accordance with the tax laws. No deferred tax liabilityis recognised for a temporary difference arising from the initial recognition of goodwill. No deferred tax asset or deferred tax liability isrecognised for the temporary differences resulting from the initial recognition of assets or liabilities due to a transaction other than abusiness combination, which affects neither accounting profit nor taxable profit (or deductible loss). At the balance sheet date, deferredtax assets and deferred tax liabilities are measured at the tax rates that are expected to apply to the period when the asset is realised orthe liability is settled.
Deferred tax assets are only recognised for deductible temporary differences, deductible losses and tax credits to the extent that it isprobable that taxable profit will be available in the future against which the deductible temporary differences, deductible losses and taxcredits can be utilised.
Deferred tax liabilities are recognised for temporary differences arising from investments in subsidiaries and associates, except wherethe Group is able to control the timing of reversal of the temporary difference, and it is probable that the temporary difference will notreverse in the foreseeable future. When it is probable that the temporary differences arising from investments in subsidiaries andassociates will be reversed in the foreseeable future and that the taxable profit will be available in the future against which thetemporary differences can be utilised, the corresponding deferred tax assets are recognised.
Deferred tax assets and liabilities are offset when:
·deferred income tax assets and deferred income tax liabilities are related to the income tax levied by the same the same taxationauthority on the same taxpayer in the group;·that tax payer within the Group has a legally enforceable right to offset current tax assets against current tax liabilities.
25. Leases(1) Accounting method of operating lease
Lease payments under an operating lease are recognised on a straight-line basis over the period of the lease, and are either capitalised aspart of the cost of related assets, or charged as an expense for the current period.
Lease income under an operating lease is recognised as revenue on a straight-line basis over the period of the lease.
(2) Accounting method of financing lease
A lease that transfers substantially all the risks and rewards incidental to ownership of an asset is a finance lease. An operating lease is
a lease other than financing lease.
26. Other significant accounting policies and accounting estimates
The Group continually evaluates the critical accounting estimates and key assumption applied based on historical experience and otherfactors, including expectations of future events that are believed to be reasonable.
The critical accounting estimates and key assumptions that have a significant risk of causing a material adjustment to the carryingamounts of assets and liabilities within the next accounting year are outlined below:
(a)Income taxes
The Group is subject to income taxes in numerous jurisdictions. There are many transactions and events for which the ultimate taxdetermination is uncertain during the ordinary course of business. Significant judgement is required from the Group in determining theprovision for income taxes in each of these jurisdictions. Where the final tax outcome of these matters is different from the amounts thatwere initially recorded, such differences will impact the income tax and deferred tax provisions in the period in which suchdetermination is made.
(b)Deferred income tax
Estimates on deferred tax assets are based on estimates on amount of taxable income and applicable tax rate for every year.Realization of deferred income tax is subject to sufficient taxable income that is possible to be obtained by the Group in the future.Change of the future tax rate as well as the reversed time of temporary difference might have effects on tax expense (income) and thebalance of deferred tax assets or liabilities. Those estimates may also cause significant adjustment on deferred tax.
(c)Impairment of long-term assets (excluding goodwill)
Long-term assets at the balance sheet date should be subject to impairment testing if there are any indications of impairment. Themanagement determines whether the long-term assets impaired or not by evaluating and analysing following aspects: (1) whether theevent affecting assets impairment occurs; (2) whether the expected obtainable present value of future cash flows is lower than the
asset’s carrying amount by continually using the assets or disposal; and (3) whether the assumptions used in expected obtainable
present value of future cash flows are appropriate.
Various assumptions, including the discount rate and growth rate applied in the method of present value of future cash flow, arerequired in evaluating the recoverable amount of assets. If these assumptions cannot be conformed, the recoverable amount should bemodified, and the long-term assets may be impaired accordingly.
(d)The useful life of fixed assets
The management estimates the useful life of fixed assets, based on historical experiences on using fixed assets that have similarproperties and functions. When there are differences between actually useful life and previously estimation, the management willadjust estimation to useful life of fixed assets. The fixed assets would be written off or written down when fixed assets been disposed orbecame redundant. There will be difference between the results of estimation and actual results for next accounting period, sosignificant adjustments may be made to the carrying amount of fixed assets in balance sheet.
(e)Goodwill impairment
The Group tests annually whether goodwill has suffered any impairment. The recoverable amount of asset groups and groups of assetgroups is the present value of the future cash flows expected to be derived from them. These calculations require use of estimates (Note4 (12)).
If management revises the gross margin that is used in the calculation of the future cash flows of asset groups and groups of asset groups,and the revised gross margin is lower than the one currently used, the Group would need to recognise further impairment againstgoodwill.
If management revises the pre-tax discount rate applied to the discounted cash flows, and the revised pre-tax discount rate is higher thanthe one currently applied, the Group would need to recognise further impairment against goodwill.
If the actual gross margin/pre-tax discount rate is higher/lower than management’s estimates, the impairment loss of goodwill
previously provided for is not allowed to be reversed by the Group
27. Changes in significant accounting policies and accounting estimates(1) Changes in significant accounting policies
√Applicable □Not applicable
| The content and reasons of accounting policy changes | Approval procedure | Remarks |
| The Ministry of Finance promulgated the revised Accounting Standard for Business Enterprises No. 16 - Government Grants on May 10, 2017. The Company has adopted the above guidelines to prepare the semi-annual financial statements for 2017. | Board of directors | No influence |
The Ministry of Finance promulgated the revised Accounting Standard for Business Enterprises No. 16 - Government Grants on May10, 2017. The Company has adopted the above guidelines to prepare the semi-annual financial statements for 2017. It had no effect onthe Group's consolidated balance sheet and the Company's balance sheet as at 31 December 2016 and the consolidation and theCompany's income statement for the six months ended 30 June 2016.
(2)Changes in significant accounting estimates
□Applicable √ Not applicable
28. Others
Safety production costs
According to relevant regulations of the Ministry of Finance and National Administration of Work Safety, a subsidiary of the Groupwhich is engaged in producing and selling polysilicon appropriates safety production costs on following basis:
(a) 4% for revenue below RMB10 million (inclusive) of the year;
(b) 2% for the revenue between RMB10 million to RMB100 million (inclusive) of the year;(c) 0.5% for the revenue between RMB100 million to RMB1 billion (inclusive) of the year;(d) 0.2% for the revenue above RMB1 billion of the year.
The safety production costs is mainly used for the overhaul, renewal and maintenance of safety facilities. The safety production costsare charged to costs of related products or profit orloss when appropriated, and safety production costs in equity account are creditedcorrespondingly. When using the special reserve, if the expenditures are expenses in nature, the expenses incurred are offset against thespecial reserve directly when incurred. If the expenditures are capital expenditures, when projects are completed and transferred tofixed assets, the special reserve should be offset against the cost of fixed assets, and a corresponding accumulated depreciation arerecognised. The fixed assets are no longer be depreciated in future.
Segment information
The Group identifies operating segments based on the internal organisation structure, management requirements and internal reportingsystem, and discloses segment information of reportable segments which is determined on the basis of operating segments.
An operating segment is a component of the Group that satisfies all of the following conditions: (1) the component is able to earn
revenues and incur expenses from its ordinary activities; (2) whose operating results are regularly reviewed by the Group’s
management to make decisions about resources to be allocated to the segment and to assess its performance, and (3) for which theinformation on financial position, operating results and cash flows is available to the Group. If two or more operating segments havesimilar economic characteristics and satisfy certain conditions, they are aggregated into one single operating segment.
VI. Taxation
1. The main categories and rates of taxes
| Tax items | Tax basis | Tax rate |
| Value added tax (“VAT”) | Taxable value added amount (Tax payable is calculated using the taxable sales amount multiplied by the effective tax rate less current period’s deductible VAT input ) | 6%-17% |
| Urban construction tax | Total VAT, Business tax and GST | 1%-7% |
| Enterprise income tax | Taxable income | 0%-25% |
| Educational surtax | Total VAT, Business tax and GST | 3%-5% |
| Resource tax | Quantities of Silica sold | RMB 3 per ton |
2. Tax incentives
The main tax incentives the Group is entitled to are as follows:
Tianjin Energy Conservation Glass Co., Ltd. (“Tianjin Energy Conservation”) passed review on a high and new tech enterprise in 2015
and obtained the Certificate of High and New Tech Enterprise, the period of validity is three years. It applies to 15% tax rate for threeyears since 2015.
Dongguan CSG Architectural Glass Co., Ltd. (“Dongguan CSG”) passed review on a high and new tech enterprise in 2016 and
obtained the Certificate of High and New Tech Enterprise, the period of validity is three years. It applies to 15% tax rate for three yearssince 2016.
Wujiang CSG North-east Architectural Glass Co., Ltd. (“Wujiang CSG”) passed review on a high and new tech enterprise in 2014 and
obtained the Certificate of High and New Tech Enterprise, the period of validity is three years. It applies to 15% tax rate for three yearssince 2014. It is on a review of high and new tech enterprise at present, and temporarily applies to 15% income tax rate for the period.
Dongguan CSG Solar Glass Co., Ltd. (“Dongguan CSG Solar”) passed review on a high and new tech enterprise in 2014 and obtained
the Certificate of High and New Tech Enterprise, the period of validity is three years. It applies to 15% tax rate for three years since2014. It is on a review of high and new tech enterprise at present, and temporarily applies to 15% income tax rate for the period.
Yichang CSG Silicon Co., Ltd. (“Yichang CSG Silicon”) passed review on a high and new tech enterprise in 2014 and obtained the
Certificate of High and New Tech Enterprise, the period of validity is three years. It applies to 15% tax rate for three years since 2014.It is on a review of high and new tech enterprise at present, and temporarily applies to 15% income tax rate for the period.
Dongguan CSG PV-tech Co., Ltd. (“Dongguan CSG PV-tech”) passed review on a high and new tech enterprise in 2016 and obtained
the Certificate of High and New Tech Enterprise, the period of validity is three years. It applies to 15% tax rate for three years since2016.
Hebei Shichuang Glass Co., Ltd. (“Hebei Shichuang”) passed review on a high and new tech enterprise in 2016 and obtained the
Certificate of High and New Tech Enterprise, the period of validity is three years. It applies to 15% tax rate for three years since 2016.
Wujiang CSG Glass Co., Ltd. (“Wujiang CSG”) was recognised as a high and new tech enterprise in 2014, and obtained the Certificate
of High and New Tech Enterprise, and the period of validity was three years. It applies to 15% tax rate for three years since 2014. It ison a review of high and new tech enterprise at present, and temporarily applies to 15% income tax rate for the period.
Xianning CSG Glass Co Ltd. (“Xianning CSG”) was recognised as a high and new tech enterprise in 2014, and obtained the Certificate
of High and New Tech Enterprise, and the period of validity was three years. It applies to 15% tax rate for three years since 2014. It ison a review of high and new tech enterprise at present, and temporarily applies to 15% income tax rate for the period.
Xianning CSG Energy-Saving Glass Co., Ltd. (“Xianning CSG Energy-Saving”) was recognised as a high and new tech enterprise in
2015, and obtained the Certificate of High and New Tech Enterprise, and the period of validity was three years. It applies to 15% taxrate for three years since 2015.
Yichang CSG Photoelectric Glass Co., Ltd. (“Yichang CSG Photoelectric”) was recognised as a high and new tech enterprise in 2015,
and obtained the Certificate of High and New Tech Enterprise, and the period of validity was three years. It applies to 15% tax rate forthree years since 2015.
Shenzhen CSG Display was recognised as a high and new tech enterprise in 2015, and obtained the Certificate of High and New TechEnterprise, and the period of validity was three years. It applies to 15% tax rate for three years since 2015.
Yichang CSG Display Co., Ltd (“Yichang CSG Display”) was recognised as a high and new tech enterprise in 2016, and obtained the
Certificate of High and New Tech Enterprise, and the period of validity was three years. It applies to 15% tax rate for three years since
2016.
Qingyuan CSG New Energy-Saving Materials Co., Ltd. (“Qingyuan CSG Energy-Saving”) was recognised as a high and new tech
enterprise in 2016, and obtained the Certificate of High and New Tech Enterprise, and the period of validity was three years. It appliesto 15% tax rate for three years since 2016.
Sichuan CSG Energy Conservation Glass Co., Ltd. (“Sichuan CSG Energy Conservation”) obtains enterprise income tax preferential
treatment for Western Development, and temporarily calculates enterprise income tax at a tax rate of 15% for the period.
Chengdu CSG Glass Co., Ltd. (“Chengdu CSG”) obtains enterprise income tax preferential treatment for Western Development, and
temporarily calculates enterprise income tax at a tax rate of 15% for the period.
Qingyuan CSG New Energy Co., Ltd. (“Qingyuan CSG New Energy”), Suzhou CSG PV Energy Co., Ltd. (“Suzhou CSG PV Energy”),Jiangsu Wujiang CSG New Energy Co., Ltd. (“Wujiang CSG New Energy”), and Yichang CSG New Energy Co., Ltd. (“Yichang CSGNew Energy”) are public infrastructure project specially supported by the state in accordance with the Article 87 in Implementing
Regulations of the Law of the People's Republic of China on Enterprise Income Tax, and can enjoy the tax preferential policy of
“three-year exemptions and three-year halves”, that is, starting from the tax year when the first revenue from production and operation
occurs, the enterprise income tax is exempted from the first to the third year, while half of the enterprise income tax is collected for thefollowing three years. Qingyuan CSG New Energy, Suzhou CSG PV Energy and Wujiang CSG New Energy started to carry outoperations in 2015, while Yichang CSG New Energy started operation in 2016. The applicable enterprise income tax rate for them is0% for the period.
In addition, pursuant to the document Fogang Guo Shui Shui Tong [2015] No. 2489, the VAT for photovoltaic power generation ofQingyuan CSG New Energy is subject to the refund upon collection policy.
3. Others
Some subsidiaries of the Group have used the “exempt, credit, refund” method on goods exported and the refund rate is 5%-17%.
VII. Notes to the consolidated financial statements
1. Cash at bank and on hand
Unit: RMB
| Item | Balance at the end of the period | Balance at the beginning of the period |
| Cash on hand | 27,530 | 17,239 |
| Cash at bank | 932,022,992 | 584,549,751 |
| Other cash balances | 2,184,679 | 2,236,515 |
| Total | 934,235,201 | 586,803,505 |
| Including: Total overseas deposit | 19,394,575 | 12,956,226 |
Other cash balances include margin deposits for the application of opening letter of credit and loan from the bank, amounting to RMB
2,184,679 (31 Dec. 2016: RMB 2,236,515), which is restricted cash.
2. Notes receivable(1) Notes receivable listed by classification
Unit: RMB
| Item | Balance at the end of the period | Balance at the beginning of the period |
| Bank acceptance notes | 248,524,397 | 138,557,412 |
| Trade acceptance notes | 288,032,806 | 317,789,825 |
| Total | 536,557,203 | 456,347,237 |
(2) Notes receivable which has been endorsed or discounted at the end of the term by the Company but notyet due at balance sheet date
Unit: RMB
| Item | Amount of recognition termination at the period-end | Amount of not terminated recognition at the period-end |
| Bank acceptance notes | 1,647,228,930 | |
| Trade acceptance notes | 181,790,787 | |
| Total | 1,647,228,930 | 181,790,787 |
3. Accounts receivable(1) Accounts receivable disclosed by category
Unit: RMB
| Categories | End of term | Beginning of term | ||||||||
| Book balance | Bad debt provision | Book value | Book balance | Bad debt provision | Book value | |||||
| Amount | Proportion % | Amount | Proportion % | Amount | Proportion % | Amount | Proportion % | |||
| Accounts receivable withdrawn bad debt provision according to credit risks characteristics | 684,955,960 | 98% | 13,168,976 | 2% | 671,786,984 | 631,863,585 | 98% | 12,187,534 | 2% | 619,676,051 |
| Account receivable with minor individual amount but bad | 12,404,070 | 2% | 4,247,139 | 34% | 8,156,931 | 12,590,789 | 2% | 4,280,857 | 34% | 8,309,932 |
| debt provision is provided | ||||||||||
| Total | 697,360,030 | 100% | 17,416,115 | 2% | 679,943,915 | 644,454,374 | 100% | 16,468,391 | 3% | 627,985,983 |
Accounts receivable with large amount individually and bad debt provisions were provided
□ Applicable √ Non-applicable
Accounts receivable on which bad debt provisions are provided on age analyze basis in the portfolio
□ Applicable √ Non-applicable
Accounts receivable on which bad debt provisions are provided on percentage analyze basis in a portfolio
√Applicable □ Non-applicable
Unit: RMB
| Name of portfolio | Closing balalnce | ||
| Accounts receivable | Bad debt provision | Proportion % | |
| Portfolio 1 | 684,955,960 | 13,168,976 | 2% |
| Portfolio 2 | |||
| Total | 684,955,960 | 13,168,976 | 2% |
(2) Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debt provision during the report period was of RMB 5,374,252. The amount of the reversed orcollected part during the report period was of RMB 4,358,997.
(3) The actual write-off accounts receivable
Unit: RMB
| Item | Write-off amount |
| Accounts receivable | 67,531 |
(4) Top 5 of the closing balance of the accounts receivable colleted according to the arrears party
As at 30 June 2017, the top 5 of the closing balance of the accounts receivable colleted according to the arrears party were collectedand analyzed as follows:
| Balance | Provision for bad debts | Percentage in total accounts receivable balance | |
| Total balances for the five largest accounts receivable | 169,168,209 | (3,383,364) | 24% |
4. Advances to suppliers(1) Listed by aging analysis
Unit: RMB
| Age | Closing balance | Opening balance | ||
| Amount | Proportion ratio (%) | Amount | Proportion ratio (%) | |
| within 1 year | 148,306,533 | 91% | 80,819,387 | 84% |
| 1-2 years | 13,940,844 | 9% | 14,913,745 | 16% |
| Total | 162,247,377 | -- | 95,733,132 | -- |
As at 30 June 2017, advances to suppliers ageing over one year amount to RMB13,940,844 (31 December 2016: RMB14,913,745).They were mainly the advances of materials, and the payment had not been selected because the materials had not been received.
(2) Top 5 of the closing balance of the advances to suppliers colleted according to the target
As at 30 June 2017, the top five largest advances to supplies are set out as below:
| Balance | Percentage in total advances balance | |
| Total advances for the five largest advances | 58,816,501 | 36% |
5. Other account receivable(1) Other accounts receivable disclosed by category:
Unit: RMB
| Categories | Closing balance | Openning balance | ||||||||
| Book balance | Bad debt provision | Book value | Book balance | Bad debt provision | Book value | |||||
| Amount | Proportion % | Amount | Proportion % | Amount | Proportion % | Amount | Proportion % | |||
| Other accounts receivable withdrawn bad debt provision according to credit risks characteristics | 34,326,598 | 100% | 767,508 | 2% | 33,559,090 | 33,903,217 | 100% | 674,068 | 2% | 33,229,149 |
| Total | 34,326,598 | 100% | 767,508 | 2% | 33,559,090 | 33,903,217 | 100% | 674,068 | 2% | 33,229,149 |
Statement on categories of other receivable accounts:
Other accounts receivable with large amount and were provided bad debt provisions individually at end of period.
□ Applicable √ Non-applicable
Other accounts receivable in the portfolio on which bad debt provisions were provided on age analyze basis
□ Applicable √ Non-applicable
Other accounts receivable in the portfolio on which bad debt provisions were provided on percentage basis
√ Applicable □ Non-applicable
Unit: RMB
| Name of portfolio | Closing balance | ||
| Other receivable accounts | Bad debt provision | proportion% | |
| portfolio 1 | 34,326,598 | 767,508 | 2% |
| Total | 34,326,598 | 767,508 | 2% |
Explanation for determining the basis of the portfolio:
Other accounts receivable in the portfolio on which bad debt provisions were provided on other basis
□ Applicable √ Non-applicable
(2) Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debt provision during the report period was of RMB127,208. The amount of the reversed orcollected part during the report period was of RMB 33,768.
(3) Other accounts receivable classified by the nature of accounts
Unit: RMB
| Nature | Closing balance | Opening balance |
| Refundable deposits | 6,953,820 | 6,121,403 |
| Payments made on behalf of other parties | 23,225,811 | 25,019,422 |
| Petty cash | 1,389,488 | 959,785 |
| Export tax rebates receivable | 805,438 | 755,372 |
| Others | 1,952,041 | 1,047,235 |
| Total | 34,326,598 | 33,903,217 |
(4) Top 5 of the closing balance of the other accounts receivable collated according to the arrears party
Unit: RMB
| Name of the companies Industrial | Nature | Closing balance | Ages | Proportion of the total year end balance of the accounts receivable (%) | Closing balance of bad debt provision |
| Government agency | Independent third | 11,067,754 | 1 to 3 years | 32% | 221,355 |
| A | party | ||||
| Company B | Independent third party | 4,268,347 | W Within 1 year | 12% | 85,367 |
| Company C | Independent third party | 3,183,029 | Within 1 year | 9% | 63,661 |
| Company D | Independent third party | 1,900,000 | Within 1 year | 6% | 38,000 |
| Government agency E | Independent third party | 1,196,150 | Within 1 year | 3% | 23,923 |
| Total | -- | 21,615,280 | -- | 62% | 432,306 |
6. Inventories(1) Categories of inventory
Unit: RMB
| Items | Closing balance | Opening balance | ||||
| Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
| Raw materials | 254,363,351 | 1,480,641 | 252,882,710 | 166,639,254 | 2,025,446 | 164,613,808 |
| Product in process | 20,325,740 | 20,325,740 | 18,893,651 | 18,893,651 | ||
| Products in stock | 330,050,877 | 3,147,241 | 326,903,636 | 274,559,889 | 6,347,741 | 268,212,148 |
| Material in circulation | 30,481,690 | 30,481,690 | 26,061,318 | 26,061,318 | ||
| Total | 635,221,658 | 4,627,882 | 630,593,776 | 486,154,112 | 8,373,187 | 477,780,925 |
(2) Inventory impairment provision
Unit: RMB
| Categories | Opening balance | Increased this term | Decreased this term | Closing balance | ||
| Withdrawal | Other | Reverse or write-off | Other | |||
| Raw materials | 2,025,446 | 544,805 | 1,480,641 | |||
| Products in stock | 6,347,741 | 3,200,500 | 3,147,241 | |||
| Total | 8,373,187 | 3,745,305 | 4,627,882 | |||
Details of inventory impairment provision as following:
| Basis for provision for decline in the value of inventories | Reasons of reversal of the decline in the value of inventories in the period |
| Finished goods | The amount of carrying amount less net realisable value due to decline in price of products | Sold | |
| Raw materials | The amount of book value less net realisable value due to sluggish or damaged raw materials | Used |
7. Other current assets
Unit: RMB
| Item | Closing balance | Opening balance |
| VAT to be offset | 186,548,195 | 150,317,894 |
| Asstes held for sale | 40,049,163 | 40,049,163 |
| Enterprise income tax prepaid | 1,590,919 | 1,325,723 |
| VAT input to be recognised | 21,181,042 | 8,212,797 |
| Total | 249,369,319 | 199,905,577 |
8. Fixed assets(1) Particulars of fixed assets
Unit: RMB
| Items | Buildings | Machinery and equipment | Motor vehicles and others | Total |
| I. Original book value: | ||||
| 1. Opening balance | 3,911,336,527 | 11,699,296,248 | 201,923,067 | 15,812,555,842 |
| 2. Increased amount of the period | ||||
| (1) Acquisition | 1,007,850 | 7,963,289 | 2,988,342 | 11,959,481 |
| (2) Transfers from construction in progress | 70,349,000 | 851,590,771 | 1,185,606 | 923,125,377 |
| (3) Increase from enterprise combination | ||||
| (4) Others | 731,040 | 1,858,203 | 472,773 | 3,062,016 |
| 3. Decreased amount of the period | ||||
| (1)Disposal or retirement | 495,370 | 2,576,058 | 3,071,428 | |
| (2) Others | 3,695,395 | 282,254,513 | 285,949,908 | |
| 4. Closing balance | 3,979,729,022 | 12,277,958,628 | 203,993,730 | 16,461,681,380 |
| II. Accumulative depreciation and accumulative amortization |
| 1. Opening balance | 629,946,237 | 3,287,606,208 | 172,265,020 | 4,089,817,465 |
| 2. Increased amount of the period | ||||
| (1) Withdrawal | 61,506,196 | 408,580,685 | 11,232,619 | 481,319,500 |
| 3. Decreased amount of the period | ||||
| (1)Disposal or retirement | 378,003 | 2,461,513 | 2,839,516 | |
| (2) Transferred to construction in progress | 1,895,250 | 138,978,164 | 140,873,414 | |
| 4. Closing balance | 689,557,183 | 3,556,830,726 | 181,036,126 | 4,427,424,035 |
| III. Depreciation reserves | ||||
| 1. Opening balance | 264,765,386 | 264,765,386 | ||
| 2. Increased amount of the period | ||||
| (1) Withdrawal | ||||
| 3. Decreased amount of the period | ||||
| (1)Disposal or retirement | ||||
| (2) Others | 4,010,176 | 4,010,176 | ||
| 4. Closing balance | 260,755,210 | 260,755,210 | ||
| IV. Book value | ||||
| 1. Closing book value | 3,290,171,839 | 8,460,372,692 | 22,957,604 | 11,773,502,135 |
| 2. Opening book value | 3,281,390,290 | 8,146,924,654 | 29,658,047 | 11,457,972,991 |
(2) Fixed asset not licensed yet
Unit: RMB
| Items | Book value | Reason for not granted |
| Buildings | 910,163,588 | Have submitted the required documents and are in the process of application, or the related land use right certificate pending |
During January to June 2017, the depreciation amount provided for fixed assets was RMB 481,319,500 (January to June 2016: RMB421,993,622), and the amount of depreciation expenses charged to cost of sales, selling and distribution expenses, general andadministrative expenses and construction in progress was RMB 448,195,663, RMB 482,108, RMB 31,885,617, and RMB 756,112(January to June 2016: RMB 385,642,218, RMB 506,576, RMB 26,989,222, RMB 8,855,606), respectively.During January to June 2017, the cost of fixed assets transferred from construction in progress amounted to RMB 923,125,377(January to June 2016: RMB 901,652,337).
9. Construction in process(1)Particulars of construction in process
Unit: RMB
| Item | Closing balance | Opening balance | ||||
| Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
| Yichang 1GW silicon slice project | 346,209,311 | 346,209,311 | 95,011,027 | 95,011,027 | ||
| Yichang CSG Display panel display project | 305,291,976 | 18,170,650 | 287,121,326 | 274,342,571 | 14,160,474 | 260,182,097 |
| Xianning CSG Photoelectric Glass project | 221,147,847 | 221,147,847 | 41,267,876 | 41,267,876 | ||
| Hebei float 600T tech-innovation project | 120,324,473 | 120,324,473 | ||||
| Zhanjiang PV PV power station project | 53,766,946 | 53,766,946 | 8,855,560 | 8,855,560 | ||
| Wujiang float glass project | 70,357,072 | 19,876,460 | 50,480,612 | 70,178,986 | 19,876,460 | 50,302,526 |
| Dongguan Solar Glass Phase I and II improvement project | 78,970,995 | 33,075,116 | 45,895,879 | 78,970,995 | 33,075,116 | 45,895,879 |
| Sichuan energy-saving project Phase III | 10,493,107 | 10,493,107 | 13,005,928 | 13,005,928 | ||
| Dongguan PV 250MW module capacity expansion project | 10,141,901 | 10,141,901 | ||||
| Dongguan PV 100MV cell production capacity expansion project | 8,343,263 | 8,343,263 | ||||
| Yichang 700MW silicon slice expansion project | 2,018,255 | 2,018,255 | 1,775,641 | 1,775,641 | ||
| Wujiang Photovoltaic Packaging Materials Project | 1,693,809 | 1,693,809 | 1,583,553 | 1,583,553 | ||
| Xianning energy-saving glass project | 1,354,508 | 1,354,508 | 1,083,430 | 1,083,430 | ||
| Dongguan PV Tech | 1,146,672 | 1,146,672 | 8,224,072 | 8,224,072 | ||
| 200MW PV-tech Battery Expansion project | ||||||
| Yichang 5000T electronic-grade polysilicon project | 171,211,288 | 171,211,288 | ||||
| Chengdu float 550T line tech-renovation | 102,304,740 | 102,304,740 | ||||
| Hebei float 900T tech-innovation project | 388,627,081 | 388,627,081 | ||||
| Heyuan PV tech 11MV distributed generation project | 85,126,446 | 85,126,446 | ||||
| others | 99,287,462 | 99,287,462 | 87,639,233 | 87,639,233 | ||
| Total | 1,330,547,597 | 71,122,226 | 1,259,425,371 | 1,429,208,427 | 67,112,050 | 1,362,096,377 |
(2) Movement of significant project
Unit: RMB
| Projects | Budget | Opening balance | Increased this term | Transferred into fixed assets | Other decreases | Closing balance | Investment on budget (%) | Progress | Accumulate of interest capitalized | Including: interest capitalized this term | Capitalizing rate of interest this period % | Fund recourse |
| Yichang 1GW silicon slice project | 1,073,209,600 | 95,011,027 | 251,392,592 | 194,308 | 346,209,311 | 48.00% | 65.00% | 3,371,909 | 2,825,684 | 4.41% | Internal fund and bank loan | |
| Yichang CSG Display panel display project | 1,970,000,000 | 274,342,571 | 54,407,827 | 23,194,679 | 263,743 | 305,291,976 | 55.00% | 65.00% | 2,691,886 | 1,694,243 | 4.11% | Internal fund and bank loan |
| Xianning CSG Photoelectric Glass project | 510,000,000 | 41,267,876 | 180,424,957 | 544,986 | 221,147,847 | 54.00% | 70.00% | 3,030,956 | 3,030,956 | 4.75% | Internal fund and bank loan | |
| Hebei float 600T tech-innovation project | 181,250,000 | 120,324,473 | 120,324,473 | 2.00% | 2.00% | Internal fund and bank loan | ||||||
| Zhanjiang PV PV power station project | 130,000,000 | 8,855,560 | 44,911,386 | 53,766,946 | 40.00% | 45.00% | 918,139 | 139,762 | 4.57% | Internal fund and bank loan | ||
| Wujiang float glass project | 919,891,000 | 70,178,986 | 431,588 | 253,502 | 70,357,072 | 100.00% | 100.00% | 20,120,444 | Internal fund and bank loan | |||
| Dongguan Solar Glass Phase I and II improvement | 396,410,000 | 78,970,995 | 78,970,995 | 80.00% | 80.00% | Internal fund |
| project | ||||||||||||
| Sichuan energy-saving project Phase III | 222,817,517 | 13,005,928 | 2,512,821 | 10,493,107 | 99.00% | 99.00% | Internal fund | |||||
| Dongguan PV 250MW module capacity expansion project | 28,000,000 | 10,329,122 | 187,221 | 10,141,901 | 36.00% | 50.00% | 45,374 | 45,374 | 4.80% | Internal fund and bank loan | ||
| Dongguan PV 100MV cell production capacity expansion project | 15,000,000 | 8,343,263 | 8,343,263 | 56.00% | 70.00% | 37,327 | 37,327 | 4.80% | Internal fund and bank loan | |||
| Yichang 700MW silicon slice expansion project | 697,000,000 | 8,224,072 | 7,077,400 | 1,146,672 | 100.00% | 100.00% | 32,015,800 | Internal fund and bank loan | ||||
| Wujiang Photovoltaic Packaging Materials Project | 1,980,000,000 | 1,775,641 | 242,614 | 2,018,255 | 76.00% | 100.00% | 17,594,454 | 4.41% | Internal fund and bank loan | |||
| Xianning energy-saving glass project | 565,119,318 | 1,583,553 | 137,080 | 26,824 | 1,693,809 | 95.00% | 100.00% | 6,321,397 | Internal fund and bank loan | |||
| Dongguan PV Tech 200MW PV-tech Battery Expansion project | 295,270,606 | 1,083,430 | 373,576 | 68,594 | 33,904 | 1,354,508 | 99.00% | 100.00% | 11,306,278 | Internal fund and bank loan | ||
| Yichang 5000T electronic-grade | 698,396,700 | 171,211,288 | 46,327,655 | 216,595,546 | 943,397 | 30.00% | 35.00% | 7,177,033 | 3,967,498 | 4.41% | Internal fund and bank loan |
| polysilicon project | ||||||||||||
| Chengdu float 550T line tech-renovation | 200,000,000 | 102,304,740 | 57,219,831 | 159,524,571 | 92.00% | 100.00% | Internal fund | |||||
| Hebei float 900T tech-innovation project | 124,000,000 | 388,627,081 | 4,503,619 | 393,130,700 | 100.00% | 100.00% | 4,211,893 | 1,057,593 | 4.94% | Internal fund and bank loan | ||
| Heyuan PV tech 11MV distributed generation project | 91,610,000 | 85,126,446 | 1,021,587 | 86,141,345 | 1,834 | 4,854 | 94.00% | 100.00% | 325,704 | 325,704 | 5.00% | Internal fund and bank loan |
| others | 1,046,953,400 | 87,639,233 | 46,885,679 | 36,185,701 | 98,339,211 | 67,530,341 | 910,042 | Internal fund and bank loan | ||||
| Total | 11,144,928,141 | 1,429,208,427 | 827,276,849 | 923,125,377 | 2,812,302 | 1,330,547,597 | -- | -- | 176,698,935 | 14,034,183 | -- |
10. Intangible assets(1) Particulars of intangible assets
Unit: RMB
| Item | Land use rights | Patents | Mineral rights | Others | Total |
| I. Original book value: | |||||
| 1. Opening balance | 1,026,603,700 | 199,922,986 | 4,456,536 | 23,548,047 | 1,254,531,269 |
| 2. Increased amount of the period | |||||
| (1) Acquisition | 2,856,020 | 13,539 | 2,869,559 | ||
| (2) Internal R &D | 6,097,439 | 6,097,439 | |||
| (3) Increase from enterprise combination | |||||
| 3. Decreased amount of the period | |||||
| (1)Disposal | |||||
| 4. Closing balance | 1,026,603,700 | 208,876,445 | 4,456,536 | 23,561,586 | 1,263,498,267 |
| II. Total accrued amortization | |||||
| 1. Opening balance | 128,007,677 | 57,225,743 | 3,306,083 | 20,322,309 | 208,861,812 |
| 2. Increased amount of the period | |||||
| (1) Withdrawal | 9,813,201 | 7,601,215 | 200,321 | 2,141,791 | 19,756,528 |
| 3. Decreased amount of the period | |||||
| (1)Disposal | |||||
| 4. Closing balance | 137,820,878 | 64,826,958 | 3,506,404 | 22,464,100 | 228,618,340 |
| III. Impairment provision | |||||
| 1. Opening balance | 13,201,347 | 9,133 | 13,210,480 | ||
| 2. Increased amount of the period | |||||
| (1) Withdrawal | |||||
| 3. Decreased amount of the period | |||||
| (1)Disposal | |||||
| 4. Closing balance | 13,201,347 | 9,133 | 13,210,480 |
| IV. Book value | |||||
| 1. Closing book value | 888,782,822 | 130,848,140 | 950,132 | 1,088,353 | 1,021,669,447 |
| 2. Opening book value | 898,596,023 | 129,495,896 | 1,150,453 | 3,216,605 | 1,032,458,977 |
At the end of the period, the intangible assets arising from internal research and development accounted for 10.20% of total ofintangible assets.
(2) Land use right not licensed yet
Unit: RMB
| Item | Book value | Reason for not granted |
| Land | 5,595,776 | in the process |
During Jan.-Jun. 2017, the amortisation of intangible assets amounted to RMB 19,756,528 (Jan.-Jun. 2016: RMB 16,315,423).
As at 30 June 2017, ownership certificates of land use right (“Land ownership Certificates”) for certain land use rights of the Group
with carrying amounts of approximately RMB 5,595,776 (cost: RMB 6,586,712) had not yet been obtained by the Group (as at 31
December 2016, carrying amount: RMB 5,718,191, cost: RMB 6,586,712). The Company’s management is of the view that there isno legal restriction for the Group to apply for and obtain the Land Ownership Certificates and has no adverse effect on the Group’s
business operation.
11. Development expenditure
Unit: RMB
| Item | Opening balance | The increased amount in the period | The decrease amount in the period | Closing balance | |
| Recognised as intangible assets | Transfer in gains and losses | ||||
| Development expenditure | 66,927,714 | 15,642,633 | 6,097,439 | 423,437 | 76,049,471 |
| Total | 66,927,714 | 15,642,633 | 6,097,439 | 423,437 | 76,049,471 |
During Jan.-Jun. 2017, the total amount of research and development expenditures of the Group was RMB 166,809,377 (Jan.-Jun.2016: RMB 155,478,325), including RMB 151,590,181 (Jan.-Jun. 2016: RMB 127,759,895) recorded in income statement for currentperiod and RMB 6,097,439 were recognized as intangible assets (Jan.-Jun. 2016: nil). As at 30 June 2017, the intangible assets arisingfrom internal research and development accounted for 10.2% of the total of book value of intangible assets (31 December 2016:
9.51%).
12. Goodwill(1)Book value of goodwill
Unit: RMB
| Name of the companies or goodwill item | Opening balance | Increased this term | Decreased this term | Closing balance |
| Tianjing CSG Energy-saving Company | 3,039,946 | 3,039,946 | ||
| Shenzhen Display Company | 4,857,406 | 4,857,406 | ||
| Xianning Fengwei Company | 389,494,804 | 389,494,804 | ||
| Total | 397,392,156 | 397,392,156 |
The goodwill allocated to the asset groups and groups of asset groups from Tianjing CSG Energy-saving was summarised by operatingsegments as Architectural Glass segment. The goodwill allocated to the asset groups and groups of asset groups from Shenzhen CSGDisplayand Xianning CSG Photoelectric are summarised by operating segments as Electronic Glass and Display segment.
The Company's management considered that the goodwill was not impaired as at 30 June 2017.
The recoverable amount of asset groups is determinded by net present value of estimated future cash flows which is determinedaccording to the five-year budget approved by management. The cashflow exceed five years is forcasted by using growth rates not
exceeding similar long-term average growth rates of each asset group’s industry. The discount rates used are the pre-tax interest rates
that are able to reflect the risks specific to the related asset groups.
13. Long-term expenses to be amortized
Unit: RMB
| Item | Opening balance | Increased this term | Amortized this term | Closing balance |
| Expenses to be amortized | 975,660 | 9,496,897 | 779,455 | 9,693,102 |
| Total | 975,660 | 9,496,897 | 779,455 | 9,693,102 |
14. Deferred income tax asset/deferred income tax liabilities(1) Deferred income tax assets had not been off-set
Unit: RMB
| Item | Closing balance | Opening balance | ||
| Deductible temporary difference | Deferred income tax assets | Deductible temporary difference | Deferred income tax assets | |
| Provision for asset impairments | 400,092,300 | 60,026,145 | 410,272,182 | 61,899,046 |
| Deductible loss | 137,896,780 | 22,522,859 | 164,790,392 | 28,883,903 |
| Government grants | 130,489,613 | 20,809,503 | 129,722,993 | 20,654,199 |
| Accrued expenses | 66,241,073 | 11,953,528 | 81,018,069 | 12,352,386 |
| Depreciation of fixed | 26,759,268 | 7,741,138 | 28,241,461 | 6,320,146 |
| assets | ||||
| Total | 761,479,034 | 123,053,173 | 814,045,097 | 130,109,680 |
(2) Deferred income tax liabilities had not been off-set
Unit: RMB
| Item | Closing balance | Opening balance | ||
| Deductible temporary difference | Deferred income tax liabilities | Deductible temporary difference | Deferred income tax liabilities | |
| Depreciation of fixed assets | 347,335,276 | 62,520,184 | 396,118,583 | 63,406,963 |
| Total | 347,335,276 | 62,520,184 | 396,118,583 | 63,406,963 |
(3) The net balances of deferred tax assets or liabilities
Unit: RMB
| Item | Off-set amount of deferred income tax assets and liabilities at the period-end | Closing balance of deferred income tax assetsor liabilities after off-set | Off-set amount of deferred income tax assets and liabilities at the period-beginning | Opening balance of deferred income tax assetsor liabilities after off-set |
| Deferred tax assets | 38,355,963 | 84,697,210 | 33,657,826 | 96,451,854 |
| Deferred tax liabilities | 38,355,963 | 24,164,221 | 33,657,826 | 29,749,137 |
(4) Details of unrecognised deferred income tax assets
Unit: RMB
| Item | Closing balance | Opening balance |
| Deductible losses | 410,872,906 | 342,455,782 |
| Total | 410,872,906 | 342,455,782 |
(5) Deductible losses of unrecognized deferred income tax assets will due the following years
Unit: RMB
| Year | Closing balance | Opening balance | Note |
| 2018年 | 54,100,000 | 54,100,000 | |
| 2019年 | 82,300,000 | 82,300,000 | |
| 2020年 | 94,430,197 | 94,430,197 | |
| 2021年 | 111,625,585 | 111,625,585 |
| 2022年 | 68,417,124 | ||
| Total | 410,872,906 | 342,455,782 | -- |
The deductible loss of the unrecognized deferred income tax assets is mainly attributable to the Company and some of the subsidiarieswhich have been closed. The management of the Company can not expect the Company and the subsidiaries to generate sufficienttaxable income which can be used to deduct such deductible losses in the future. Therefore, deferred income tax assets are notrecognized.
15. Other non-current assets
Unit: RMB
| Item | Closing balance | Opening balance |
| Prepayment for equipment and software upgrading expenses | 74,836,840 | 69,945,550 |
| VAT input to be offset | 10,718,843 | |
| Prepayment for lease of land use rights | 6,510,000 | 6,510,000 |
| Total | 81,346,840 | 87,174,393 |
16. Short-term loans(1) Categories of short-term loans
Unit: RMB
| Item | Closing balance | Opening balance |
| Guaranteed loan | 709,694,000 | 367,618,369 |
| Unsecured loan | 1,690,000,000 | 1,650,251,293 |
| Ultra-short-term finance bonds (iii) | 2,000,000,000 | |
| Total | 2,399,694,000 | 4,017,869,662 |
(i) On 17 May 2016, the Company issued the Phase II ultra-short-term financial bonds of RMB900,000,000 for 2016, with the maturitydata of 13 February 2017 and annual rate of 4.18%.As at the reporting date, such short-term bonds had been repaid.
On 2 August 2016, the Company issued the Phase III ultra-short-term financial bonds of RMB600,000,000 for 2016, with the maturitydata of 1 May 2017 and annual rate of 3.67%.
On 1 September 2016, the Company issued the Phase IV ultra-short-term financial bonds of RMB500,000,000 for 2016, with thematurity data of 2 June 2017 and annual rate of 3.50%.
(ii) As at 30 June 2017, the Company provided its subsidiaries with guarantee for the short-term borrowings of RMB 709,694,000 (31December 2016: RMB 367,618,369), and the Company had no counter guarantee from minority shareholders of subsidiaries (31December 2016: Nil).
(iii) As at 30 June 2017, the interest of short-term borrowings varied from 2.70% to 5.00% (31 December 2016: 2.70% to 4.79%).
17. Notes payable
Unit: RMB
| Category | Closing balance | Opening balance |
| Bank acceptance notes | 114,500,000 | 20,000,000 |
| Total | 114,500,000 | 20,000,000 |
18. Accounts payable(1)Particulars of accounts payable
Unit: RMB
| Item | Closing balance | Opening balance |
| Account payable for materials | 833,168,302 | 747,769,987 |
| Account payable for equipments | 281,497,857 | 233,779,329 |
| Account payable for constructions | 171,181,012 | 100,246,462 |
| Account payable for freight | 57,741,846 | 40,916,380 |
| Account payable for water and electricity | 33,639,900 | 44,602,055 |
| Others | 5,271,561 | 2,555,157 |
| Total | 1,382,500,478 | 1,169,869,370 |
(2) Significant accounts payable due for over one year
Unit: RMB
| Item | Closing balance | Unpaid reason |
| Account payable for construction and equipments. | 98,986,756 | As the construction work had not passed the final acceptance test yet, the balance was not yet settled. |
| Total | 98,986,756 | -- |
As at 30 June 2017, the amount of accounts payable over 1 year was approximately RMB 98,986,756 (31 December 2016: RMB140,385,720), which mainly comprised payables for construction and equipment. As the construction work had not passed the finalacceptance test yet, the balance was not yet settled.
19. Advances from customers(1) List of advance from customers
Unit: RMB
| Item | Closing balance | Opening balance |
| Advances from customers | 201,549,137 | 142,330,979 |
| Total | 201,549,137 | 142,330,979 |
20. Employee benefits payable(1) List of Employee benefits payable
Unit: RMB
| Items | Opening balance | Increased this term | Decreased this term | Closing balance |
| I. Short-term employee benefits | 193,166,719 | 598,752,219 | 618,819,592 | 173,099,346 |
| II. Welfare after departure- defined contribution plans | 205,520 | 53,146,283 | 53,264,828 | 86,975 |
| Total | 193,372,239 | 651,898,502 | 672,084,420 | 173,186,321 |
(2) List of short-term employee benefits
Unit: RMB
| Items | Opening balance | Increased this term | Decreased this term | Closing balance |
| 1. Wages and salaries, bonuses, allowances and subsidies | 159,601,219 | 506,010,114 | 548,380,471 | 117,230,862 |
| 2. Social security contributions | 50,331 | 23,386,459 | 23,369,781 | 67,009 |
| Including: Medical insurance | 31,340 | 20,305,292 | 20,282,053 | 54,579 |
| Work injury insurance | 12,677 | 2,271,511 | 2,275,803 | 8,385 |
| Maternity insurance | 6,314 | 809,656 | 811,925 | 4,045 |
| 3. Housing funds | 2,603,791 | 26,571,506 | 26,290,058 | 2,885,239 |
| 4.Labour union funds and employee education funds | 15,571,378 | 7,084,140 | 8,025,385 | 14,630,133 |
| 5.Management bonus for performance | 15,340,000 | 35,700,000 | 12,753,897 | 38,286,103 |
| Total | 193,166,719 | 598,752,219 | 618,819,592 | 173,099,346 |
(3) List of defined contribution plans payable
Unit: RMB
| Items | Opening balance | Increased this term | Decreased this term | Closing balance |
| 1. Basic pensions | 192,780 | 51,126,025 | 51,239,954 | 78,851 |
| 2. Unemployment insurance | 12,740 | 2,020,258 | 2,024,874 | 8,124 |
| Total | 205,520 | 53,146,283 | 53,264,828 | 86,975 |
According to the decision of the fifth meeting of the seventh session of the board of directors held on 31 March 2015, the Boardapproved that it will appraise the management team based on quarterly net assets income rate and reward the management team bytaking quarterly total net profit after tax as the base. The Group withheld management performance award of RMB 35,700,000(Jan.-Jun. 2016: 43,750,000).
21. Tax payable
Unit: RMB
| Item | Closing balance | Opening balance |
| Value-added-tax payable | 37,988,909 | 41,919,187 |
| Corporate income tax payable | 31,122,623 | 46,726,185 |
| Individual income tax payable | 3,956,884 | 3,755,374 |
| Urban maintenance and construction tax | 2,859,336 | 3,482,715 |
| Property tax payable | 4,223,103 | 10,998,756 |
| Education surcharge payable | 2,334,721 | 3,351,165 |
| Others | 5,475,695 | 5,359,234 |
| Total | 87,961,271 | 115,592,616 |
22. Interest payable
Unit: RMB
| Item | Closing balance | Opening balance |
| Interest payable for long-term borrowings | 716,363 | 4,800,133 |
| Interest for corporate bonds | 37,309,995 | 10,660,000 |
| Interest payable for short-term borrowings | 2,897,716 | 2,289,987 |
| Interest for ultra-short-term financing bonds | 32,854,763 | |
| Interest payable for medium-term notes | 57,260,622 | 27,621,021 |
| Total | 98,184,696 | 78,225,904 |
23. Dividends payable
Unit: RMB
| Item | Closing balance | Opening balance |
| Common stock dividend | 207,533,556 | |
| Total | 207,533,556 |
24. Other account payable(1) List of other account payable by nature
Unit: RMB
| Item | Closing balance | Opening balance |
| Interest-free borrowings | 626,342,837 | |
| Guarantee deposits received from construction contractors | 64,868,546 | 69,156,801 |
| Accrued cost of sales | 40,511,663 | 47,671,047 |
| Temporary collection of payment for land transfer | 39,350,245 | 28,098,000 |
| Industrial production scheduling funds | 31,000,000 | |
| Payable for contracted labour costs | 16,551,623 | 17,467,346 |
| Temporary receipts | 13,218,776 | 14,022,924 |
| Deposit for disabled | 4,036,351 | 3,509,947 |
| Others | 8,943,846 | 8,395,385 |
| Total | 844,823,887 | 188,321,450 |
24. Other account payable(1) List of other account payable by nature
Unit: RMB
| Item | Closing balance | Opening balance |
| Guarantee deposits received from construction contractors | 64,868,546 | 69,156,801 |
| Accrued cost of sales | 40,511,663 | 47,671,047 |
| Temporary collection of payment for land transfer | 39,350,245 | 28,098,000 |
| Interest-free borrowings | 681,000,000 | |
| Payable for contracted labour costs | 16,551,623 | 17,467,346 |
| Temporary receipts | 13,218,776 | 14,022,924 |
| Deposit for disabled | 4,036,351 | 3,509,947 |
| Others | 8,943,846 | 8,395,385 |
| Total | 868,481,050 | 188,321,450 |
25. Non-current liabilities due within one year
Unit: RMB
| Item | Closing balance | Opening balance |
| Long-term borrowing due within 1year | 29,340,000 | |
| Bonds payable due within 1year | 1,000,000,000 | 1,000,000,000 |
| Long-term accounts payable within one year | 101,203,702 | |
| Total | 1,101,203,702 | 1,029,340,000 |
(i)According to the China Securities Regulatory Commission license [2010] No.1369 published by the China Securities RegulatoryCommission, the Company issued the corporate bonds on 20 October 2010, with a par value of RMB2 billion. The Corporate Bonds
include RMB1 billion that will mature in 5 years (“5 year Bonds”) and another RMB1 billion that will mature in 7 years (“7 yearBonds”). The 7 year Bonds holders have a put option over the Company to repurchase at the end of the fifth year. The Corporate
Bonds carries at fixed interest rate of 5.33% per year, with interest paid annually. The bonds are recognised at the actual amount ofdiscount bonds, with the actual annual rate of 5.59%. 5-year bonds have been repaid on 19 October 2015, no 7-year bonds shall beresold by investors, and are matured on 19 October 2017.(ii)As of June 30, 2017, the Company signed a sell and leaseback agreement with a third-party finance leasing company. As a resultof the Company's failure to transfer the fixed asset-related risks, it constituted a mortgage loan. In which: the amount required to berepaid within one year was shown as non-current liabilities due within one year - long term payable due within one year".
26. Other current liability
Unit: RMB
| Items | Closing balance | Opening balance |
| Others | 300,000 | 300,000 |
| Total | 300,000 | 300,000 |
27. Long-term borrowings(1) Categories of long-term borrowings
Unit: RMB
| Items | Closing balance | Opening balance |
| Guaranteed loan | 244,000,000 | 58,660,000 |
| Unsecured loan | 180,000,000 | 180,000,000 |
| Medium-term notes | 1,200,000,000 | 1,200,000,000 |
| Total | 1,624,000,000 | 1,438,660,000 |
Approved by file No. [2015] MTN225 of Inter Bank Market Trading Association, the Company is entitled to issue medium-term notes
with the limit of RMB 1,200,000,000, which expires on 28 May 2017.
The Company issued medium-term notes of RMB 1,200,000,000 on 14 July 2015 for the first time in 2015. The notes above matured
on 14 July 2020, with an annual interest rate of 4.94%.
As at 30 June 2017, the interest of long term borrowings varied from 4.51% to 4.94% (31 December 2016: 4.51% to 4.94%).
28. Long term payables(1) Long-term payables by nature of payment
Unit: RMB
| Items | Closing balance | Opening balance |
| Interest-free loan | 649,823,518 | 0 |
| Mortgage loan | 189,048,152 | 0 |
| Total | 838,871,670 | 0 |
On 22 November 2016, the Company received a letter from its shareholder, Jushenghua, stating that to support the Group’s steady
operation and development, Jushenghua, as the shareholder of the Company, would like to offer interest-free borrowings with the totalamount of RMB 2,000,000,000 to the Company or through related parties designated by it. As of the date of this report, the shareholderhas provided RMB 700,000,000 of interest-free loans (amortized cost of RMB 650,000,000).
29. Deferred revenue
Unit: RMB
| Items | Opening balance | Increased this term | Decreased this term | Closing balance | reason |
| Government grants | 422,993,254 | 12,800,000 | 14,912,953 | 420,880,301 | |
| Total | 422,993,254 | 12,800,000 | 14,912,953 | 420,880,301 | -- |
Government grants are analysed below:
Unit: RMB
| Item in debt | Opening balance | Increase in current period | Included in non-business income | Other changes | Closing balance | Related to assets or income |
| Tianjin CSG Golden Sun Project (i) | 57,092,011 | 1,687,446 | 55,404,565 | Related to assets | ||
| Dongguan CSG Golden Sun Project (ii) | 46,079,250 | 1,375,500 | 44,703,750 | Related to assets | ||
| Hebei CSG Golden Sun Project (iii) | 46,750,000 | 1,375,000 | 45,375,000 | Related to assets | ||
| Xianning CSG Golden Sun Project (iv) | 51,013,417 | 1,515,250 | 49,498,167 | Related to assets | ||
| Infrastructure compensation for Wujiang CSG Glass | 43,670,435 | 2,020,768 | 41,649,667 | Related to assets |
| Co., Ltd (v) | ||||||
| Qingyuan Energy-saving project (vi) | 23,259,167 | 1,235,001 | 22,024,166 | Related to assets | ||
| Yichang Silicon products project (vii) | 24,609,375 | 1,406,250 | 23,203,125 | Related to assets | ||
| Yichang CSG silicon slice auxiliary project (viii) | 13,890,609 | 634,323 | 13,256,286 | Related to assets | ||
| Sichuan energy-saving glass project (ix) | 12,129,480 | 827,010 | 11,302,470 | Related to assets | ||
| Group coating film experimental project (x) | 9,035,040 | 754,380 | 8,280,660 | Related to assets | ||
| Yichang expert silicon project (xi) | 3,906,547 | 132,876 | 3,773,671 | Related to assets | ||
| Yichang semiconductor silicon project (xi) | 3,666,667 | 133,334 | 3,533,333 | Related to assets | ||
| Shenzhen CSG Display project (xiii) | 53,371,082 | 1,267,239 | 52,103,843 | Related to assets | ||
| Xianning photoelectric infrastructure construction fund (xiv) | 7,800,000 | 7,800,000 | Related to assets | |||
| Others | 34,520,174 | 5,000,000 | 462,588 | 85,988 | 38,971,598 | Related to assets and income |
| Total | 422,993,254 | 12,800,000 | 14,826,965 | 85,988 | 420,880,301 | -- |
(i)The allowance was granted by Tianjin Municipal Government. The allowance was used for establishing PV power station byTianjin CSG Architectural Glass Co., Ltd. The facilities belonged to Tianjin CSG upon completion. The allowance will be credited toincome statement in 20 years, the useful life of the PV power station.
(ii)The allowance was granted by Dongguan Municipal Government. The allowance was used for establishing PV power station byDongguan CSG Architectural Glass Co., Ltd. The facilities belonged to Dongguan CSG upon completion. The allowance will becredited to income statement in 20 years, the useful life of the PV power station.
(iii)The allowance was granted by Langfang Municipal Government. The allowance was used for establishing PV power station byHebei CSG Glass Co., Ltd. ("Hebei CSG"). When the facilities were set up, they belonged to Hebei CSG. The allowance will becredited to income statement in 20 years, the useful life of the PV power station.
(iv)The allowance was granted by Xianning Municipal Government. The allowance was used for establishing PV power station byXianning CSG Glass Co Ltd. The facilities belonged to Xianning CSG upon completion. The allowance will be credited to incomestatement in 20 years, the useful life of the PV power station.
(v)The allowance was infrastructure compensation granted by Wujiang municipal government, and will be credited to incomestatement in 15 years, the shortest operating period as committed by the Group.
(vi)The allowance was a pilot project for strategic emerging industry clusters development, which was used to establish highperformance ultra-thin electronic glass production lines by Qingyuan CSG. The allowance will be credited to income statement in 10years, the useful life of the production line.
(vii)The balance represented amounts granted to Yi Chang CSG Silicon Materials Co., Ltd. by Yichang City Dongshan DevelopmentCorporation under the provisions of the investment contract signed between the Group and the Municipal Government of Yi Chang.The proceeds were designed for the construction of electricity transformer and the pipelines. Yichang Silicon is entitled to theownership of the facilities, which will be amortised by 15 years according to the useful life of the converting station.
(viii)It represented the government supporting fund obtained by Yichang Silicon from the acquiring of the assets and liabilities ofCrucible project of Yichang Hejing Photoelectric Ceramic Co., Ltd. The proceeds would be amortised and credited to incomestatement by 15 years after related assets were put into use.
(ix)It represented the funds granted by Chengdu local government for energy glass project. It will be amortised and credited toincome statement in 15 years, in accordance with the minimum operating period committed by the Group.
(x)The allowance was granted by Shenzhen City Development and Reform Commission for the development of Group Coating Filmexperimental project. The grant will be amortised and credited to income statement by 20 years in the estimated useful life of therelevant fixed assets.
(xi) It represented the funds granted by Hubei local government for inport discount complement and international corporation specialsubsidy. The grant will be amortised and credited to income statement by 12 and 14 years
(xii) It represented the special subsidy of Yichang National Regional Strategic Emerging Industry Development Pilot Project II,
which is used to complement Yichang CSG Silicon “Hubei semiconductor silicon preparative technique project laboratory”. The
grant will be amortised and credited to income statement by 15 years
(xiii)It represented the business combinations involving enterprises not under common control and the increase in deferred incomearising from incorporating the deferred income of Shenzhen CSG Display into the consolidated scope.
(xiv) It represented the funds granted by Department of Hubei Xianning High-tech Industrial Park Administrative Committee forinfrastructure construction which will be amortised by 10 years according to the useful life of the production line.
30. Share Capital
Unit: RMB
| Opening balance | Changed in the report period (+,-) | Closing balance | |||||
| Issuing of new shares | Bonus shares | Transferred from reserves | Others | Sub-total | |||
| Total of capital | 2,075,335,560 | 2,075,335,560 | |||||
The par value of the RMB-denominated ordinary shares is RMB1, and that of domestically listed foreign shares is HKD1.
31. Capital surplus
Unit: RMB
sharesItems
| Items | Opening balance | Increased this term | Decreased this term | Closing balance |
| Capital premium | 1,345,264,670 | 1,345,264,670 | ||
| Other capital surplus | -84,562,473 | 89,251,780 | 4,689,307 | |
| Total | 1,260,702,197 | 89,251,780 | 1,349,953,977 |
Other capital reserve increased was mainly attributable to the interest-free loans provided by the shareholder, Shenzhen JushenghuaCo., Ltd. to the Company. Capital reserve increased of RMB 89,141,412 when interest of the loans was calculated on equitytransactions.
32. Other comprehensive income
Unit: RMB
| Item | Opening balance | Occuring in current period | Closing balance | ||||
| Amount incurred before income tax | Less: Amount transferred into profit and loss in the current period that recognized into other comprehensive income in prior period | Less: income tax expense | After-tax attribute to the parent company | After-tax attribute to minority shareholder | |||
| II. Other comprehensive income reclassified into profit and loss in future | 4,653,971 | -1,076,264 | -1,076,264 | 3,577,707 | |||
| Differences on translation of foreign currency financial statements | 2,103,971 | -1,076,264 | -1,076,264 | 1,027,707 | |||
| Finance incentives for energy and technical transformation | 2,550,000 | 2,550,000 | |||||
| Total of other comprehensive income | 4,653,971 | -1,076,264 | -1,076,264 | 3,577,707 | |||
33. Special reserves
Unit: RMB
| Items | Opening balance | Increased this term | Decreased this term | Closing balance |
| Safety production cost | 5,843,473 | 3,922,869 | 6,532,682 | 3,233,660 |
| Total | 5,843,473 | 3,922,869 | 6,532,682 | 3,233,660 |
34. Surplus reserves
Unit: RMB
| Items | Beginning of term | Increased this term | Decreased this term | End of term |
| Statutory surplus reserve | 760,997,662 | 760,997,662 | ||
| Discretionary surplus reserve | 127,852,568 | 127,852,568 | ||
| Total | 888,850,230 | 888,850,230 |
35. Retained earnings
Unit: RMB
| Items | The current period | The same period of last year |
| Retained earnings at the end of last year before adjustment | 3,576,949,573 | 3,637,206,565 |
| Retained earnings at the beginning of this year after adjustment | 3,576,949,573 | 3,431,556,565 |
| Add: net profits belonging to equity holders of the Company | 392,992,163 | 466,883,254 |
| Less: Dividends payable | 207,533,556 | 622,600,668 |
| Retained earnings in the end | 3,762,408,180 | 3,275,839,151 |
36. Revenue and cost
Unit: RMB
| Item | Occurred in current term | Occurred in previous term | ||
| Revenue | Cost | Revenue | Cost | |
| Revenue from main operations | 4,914,535,874 | 3,730,914,851 | 4,184,209,383 | 3,052,534,128 |
| Revenue from other operations | 29,801,987 | 6,599,611 | 43,956,259 | 24,284,375 |
| Total | 4,944,337,861 | 3,737,514,462 | 4,228,165,642 | 3,076,818,503 |
37. Tax and surcharge
Unit: RMB
| Item | Occurred in current term | Occurred in previous term |
| City maintenance and construction tax | 15,364,494 | 12,602,639 |
| Educational surcharge | 11,927,211 | 10,367,308 |
| Housing property tax | 14,797,102 | 5,421,344 |
| Land use rights | 11,043,223 | 3,273,686 |
| Business tax | 2,411,686 | 1,073,483 |
| Others | 6,202,059 | 747,323 |
| Total | 61,745,775 | 33,485,783 |
38. Selling Expenses
Unit: RMB
| Items | Occurred in current term | Occurred in previous term |
| Freight expenses | 76,391,481 | 59,381,190 |
| Employee benefits | 49,496,703 | 43,288,837 |
| Entertainment expenses | 5,674,868 | 5,179,120 |
| Travelling expenses | 5,113,500 | 4,811,124 |
| Vehicle use fee | 3,531,901 | 3,414,236 |
| Rental expenses | 3,029,551 | 2,588,324 |
| General office expenses | 1,536,282 | 2,001,995 |
| Depreciation expenses | 482,108 | 506,576 |
| Others | 11,088,337 | 7,393,429 |
| Total | 156,344,731 | 128,564,831 |
39. Administrative Expenses
Unit: RMB
| Items | Occurred in current term | Occurred in previous term |
| Research and development expenses | 151,590,181 | 127,759,895 |
| Employee benefits | 135,166,127 | 113,606,280 |
| Depreciation expenses | 31,885,617 | 26,989,222 |
| Amortisation of intangible assets | 19,756,528 | 16,315,423 |
| General office expenses | 12,640,569 | 10,148,252 |
| Taxation Expenses | 17,604,458 | |
| Labour unior funds | 7,083,212 | 4,948,671 |
| Entertainment expenses | 4,800,751 | 3,889,174 |
| Travelling expenses | 4,486,643 | 4,446,174 |
| Water and electricity expense | 4,529,626 | 5,086,006 |
| Canteen costs | 4,404,253 | 3,667,235 |
| Vehicle use fee | 2,966,987 | 2,527,549 |
| Rental expenses | 2,457,132 | 1,403,376 |
| Others | 20,786,714 | 10,444,680 |
| Total | 402,554,340 | 348,836,395 |
40. Finance Expenses
Unit: RMB
| Items | Occurred in current term | Occurred in previous term |
| Loan interest | 157,228,769 | 134,008,214 |
| Less: Capitalised interest | 14,034,183 | 6,183,391 |
| Interest expenses | 143,194,586 | 127,824,823 |
| Less: Interest income | 4,186,712 | 3,301,921 |
| Exchange losses | 2,109,890 | 4,217,530 |
| Others | 2,256,263 | 4,612,961 |
| Total | 143,374,027 | 133,353,393 |
41. Asset impairment loss
Unit: RMB
| Items | Occurred in current term | Occurred in previous term |
| I. Provision for bad debts | 1,108,695 | -878,514 |
| 2. Provision for inventory depreciation | -46,858 | |
| Total | 1,108,695 | -925,372 |
42. Investment income
Unit: RMB
| Items | Occurred in current term | Occurred in previous term |
| Long-term equity investment accounted by equity method | -14,264,359 | |
| Total | -14,264,359 |
43. Other gains
Unit: RMB
| Source of other gains | Occurred in current term | Occurred in previous term |
| Industry supporting fund | 12,600,000.00 | N/A |
| Government awards fund | 4,323,546.00 | N/A |
| Subsidies for research and development | 6,479,492.00 | N/A |
| Energy saving subsidy | 128,116.00 | N/A |
| Others | 143,080.00 | N/A |
| Total | 23,674,234.00 | N/A |
44. Non-operating income
Unit: RMB
| Items | Occurred in current term | Occurred in previous term | Amount of non-recurring gain and loss included in the report period |
| Total of gains from disposal of non-current assets | 57,734 | 248,642 | 57,734 |
| Incl.：Gain on disposal of fixed assets | 57,734 | 248,642 | 57,734 |
| Government grants | 14,826,965 | 47,606,029 | 14,826,965 |
| Compensation income | 146,436 | 462,552 | 146,436 |
| Funds unpayable | 520 | 171,592 | 520 |
| Others | 997,941 | 1,549,549 | 997,941 |
| Total | 16,029,596 | 50,038,364 | 16,029,596 |
45. Non-operating expenses
Unit: RMB
| Items | Occurred in current term | Occurred in previous term | Amount of non-recurring gain and loss included in the report period |
| Total of loss from disposal of non-current assets | 129,490 | 19,984 | 129,490 |
| Incl. Loss from disposal of fixed assets | 129,490 | 19,984 | 129,490 |
| Donation | 199,999 | 40,000 | 199,999 |
| Loss on compensations | 407,332 | ||
| Others | 403,103 | 194,312 | 403,103 |
| Total | 732,592 | 661,628 | 732,592 |
46. Income tax expenses(1) List of income tax expenses
Unit: RMB
| Items | Occurred in current term | Occurred in previous term |
| Current income tax | 74,283,293 | 57,280,962 |
| Deferred income tax | 6,169,728 | 20,562,202 |
| Total | 80,453,021 | 77,843,164 |
(2) Adjustment process of accounting profit and income tax expense
Unit: RMB
| Items | Occurred in current term |
| Total profit | 480,667,069 |
| Current income tax expense accounted by tax and relevant regulations | 66,102,580 |
| Costs, expenses and losses not deductible for tax purposes | 723,999 |
| Influence of deductible temporary difference or deductible losses of unrecognized deferred income tax assets | 17,012,930 |
| Final settlement of the previous year's income tax adjustment | -3,386,488 |
| Income tax expenses | 80,453,021 |
47. Other comprehensive income
The details can be found in notes to the financial statements.
48. Items of the cash flow statement(1)Cash received relating to other operating activities
Unit: RMB
| Items | Occurred in current term | Occurred in previous term |
| Government grant | 23,674,234 | 22,515,577 |
| Interest income | 4,186,712 | 3,301,921 |
| Others | 40,349,756 | 20,291,438 |
| Total | 68,210,702 | 46,108,936 |
(2)Cash paid relating to other operating activities
Unit: RMB
| Items | Occurred in current term | Occurred in previous term |
| Transportation expense | 68,348,981 | 61,146,471 |
| Canteen cost | 21,140,169 | 19,735,042 |
| Office expenses | 16,993,639 | 13,568,857 |
| R&D fees | 26,795,302 | 19,470,201 |
| Travelling expenses | 12,971,903 | 11,839,397 |
| Entertainment expenses | 11,650,156 | 10,603,096 |
| Vehicle use fee | 7,589,416 | 7,147,877 |
| Repairing fees | 9,445,635 | 6,426,568 |
| Rental expenses | 4,103,767 | 4,439,417 |
| Insurance expenses | 6,679,946 | 4,823,957 |
| Financing Commission | 2,256,263 | 4,612,961 |
| Others | 63,287,032 | 59,101,076 |
| Total | 251,262,209 | 222,914,920 |
(3)Cash received relating to other investing operating activities
Unit: RMB
| Items | Occurred in current term | Occurred in previous term |
| Government grants received relating to assets | 12,800,000 | 3,600,000 |
| Collection trusted | 11,239,200 | 11,239,200 |
| Received repayment | 14,860,684 | |
| Total | 24,039,200 | 29,699,884 |
(4)Cash paid relating to other investing activities
Unit: RMB
| Items | Occurred in current term | Occurred in previous term |
| Payment for collection trusted | 15,300,000 | |
| Payment for deposit and margin | 31,475,182 | 6,464,586 |
| Total | 31,475,182 | 21,764,586 |
(5)Cashreceivedrelating to other financing activities
Unit: RMB
| Items | Occurred in current term | Occurred in previous term |
| Received interest free loan | 1,381,000,000 | |
| Received mortgage loan | 278,400,000 | |
| Received return money from the original affiliated company Shenzhen CSG Display | 88,567,811 | |
| Collection of income tax of dividends of | 7,289,494 |
| A-share & B-share | ||
| Collection | 2,490,239 | |
| Received deposit and margin | 4,701,291 | 4,868,673 |
| Total | 1,666,591,530 | 100,725,978 |
(6)Cashpaidrelating to other financing activities
Unit: RMB
| Items | Occurred in current term | Occurred in previous term |
| Cash paid for financing lease of the original affiliated company Shenzhen CSG Display | 109,125,965 | |
| Payment of income tax of dividends of A-share & B-share | 1,701,507 | |
| Cash paid for Commission fee | 1,750,000 | |
| Total | 3,451,507 | 109,125,965 |
49. Supplement notes of cash flow statement(1) Supplement notes of cash flow statement
Unit: RMB
| Supplementary Info. | Amount of this term | Amount of last term |
| 1. Net profit adjusted to cash flow of business operation | -- | -- |
| Net profit | 400,214,048 | 465,301,322 |
| Add: Provisions for assets impairment | 1,108,695 | -925,372 |
| Depreciation of fixed assets, gas and petrol depreciation production goods depreciation | 480,563,388 | 413,138,016 |
| Amortisation of intangible assets | 19,756,528 | 16,315,423 |
| Losses on disposal of fixed assets , intangible assets and other long-term assets (“-“ for gains) | 71,756 | -228,658 |
| Finance expenses (“-“ for gains) | 143,194,586 | 127,824,823 |
| Investment loss(“-“ for gains) | 14,264,359 | |
| Decrease in deferred tax assets (“-“ for increase) | 11,754,644 | 21,032,799 |
| Increase of deferred income tax liability (“-“ for decrease) | -5,584,916 | -470,597 |
| Decrease of inventory (“-“ for increase) | -152,812,851 | -9,920,347 |
| Decrease of operational receivable items (“-“ for increase) | -132,167,898 | -30,401,660 |
| Increase of operational payable items (“-“ for decrease) | 253,791,474 | 30,790,241 |
| Net cash flow generated by business operation | 1,019,889,454 | 1,046,720,349 |
| 2. Major investment and financing operation not involving with cash | -- | -- |
| 3. Net change of cash and cash equivalents | -- | -- |
| Balance of cash at period end | 932,050,522 | 404,710,155 |
| Less: Initial balance of cash | 584,566,990 | 574,744,877 |
| Net increasing of cash and cash equivalents | 347,483,532 | -170,034,722 |
(2) Formation of cash and cash equivalents
Unit: RMB
| Items | Closing balance | Opening balance |
| I. Cash | 932,050,522 | 584,566,990 |
| Incl: Cash on hand | 27,530 | 17,239 |
| Cash at bank without restriction | 932,022,992 | 584,549,751 |
| others without restriction | ||
| III. Balance of cash and cash equivalents at th end of the period | 932,050,522 | 584,566,990 |
50. Assets of ownership or use right restricted
Unit: RMB
| Item | Ending book value | Reason for restriction |
| Monetary fund | 2,184,679 | It’s the Company’s guarantee deposit for the application of opening letter of credit and loan from the bank, which was restricted monetary fund. |
| Total | 2,184,679 | -- |
51. Foreign currency monetary items(1) Foreign currency monetary items
Unit: RMB
| Item | Closing balance of foreign currency | Exchange rate | Closing balance convert to RMB |
| Cash at bank and on hand | -- | -- | 40,648,532 |
| Incl: USD | 4,578,142 | 6.7744 | 31,014,165 |
| EUR | 700 | 7.7496 | 5,425 |
| HKD | 10,986,291 | 0.8679 | 9,535,002 |
| AUD | 17,434 | 5.2099 | 90,829 |
| JPY | 51,421 | 0.0605 | 3,111 |
| Accounts receivable | -- | -- | 118,258,690 |
| Incl: USD | 16,372,361 | 6.7744 | 110,912,922 |
| EUR | 946,785 | 7.7496 | 7,337,205 |
| HKD | 9,866 | 0.8679 | 8,563 |
| Short-term borrowings | 65,092,500 | ||
| Incl: HKD | 75,000,000 | 0.8679 | 65,092,500 |
| Accounts payable | 98,782,030 | ||
| Incl: USD | 11,116,217 | 6.7744 | 75,305,700 |
| HKD | 306 | 0.8679 | 266 |
| EUR | 1,105,322 | 7.7496 | 8,565,803 |
| JPY | 246,450,595 | 0.0605 | 14,910,261 |
VIII. Changes in the scope of consolidation
1. The new subsidiary included in the consolidation scope in the period was Zhijiang CSG PV New Energy Co.,Ltd. (hereinafter referred to as "Zhijiang PV Company").
IX. Interest in other entities
1. Interest in subsidiary(1) Composition of the Group
| Name of subsidiary | Major business location | Place of registration | Scope of business | Shareholding (%) | Way of acquicition | |
| Direct | Indirect | |||||
| Chengdu CSG Glass Co., Ltd. | Chengdu, the PRC | Chengdu, the PRC | Development, production and sales of specialized glass | 75% | 25% | Establishment |
| Sichuan CSG Energy Conservation | Chengdu, the PRC | Chengdu, the PRC | Development, production and sales of specialized glass and processed glass | 75% | 25% | Split-off |
| Tianjin Energy Conservation Glass Co. Ltd | Tianjin, the PRC | Tianjin, the PRC | Development, production and sales of specialized energy-efficient glass | 75% | 25% | Establishment |
| Dongguan CSG Architectural Glass Co., Ltd. | Dongguan, the PRC | Dongguan, the PRC | Glass deep processing | 75% | 25% | Establishment |
| Dongguan CSG Solar Glass Co., Ltd. | Dongguan, the PRC | Dongguan, the PRC | Production and sales of solar glass | 75% | 25% | Establishment |
| Dongguan CSG PV-tech Co., Ltd. | Dongguan, the PRC | Dongguan, the PRC | Production and sales of high-tech green cell products and modules | 100% | Establishment | |
| Yichang CSG Polysilicon Co., Ltd. | Yichang, the PRC | Yichang, the PRC | Production and sales of High purity silicon materials | 75% | 25% | Establishment |
| Wujiang CSG North-east Architectural Glass Co., Ltd. | Wujiang, the PRC | Wujiang, the PRC | Glass deep processing | 75% | 25% | Establishment |
| Hebei CSG Glass Co., Ltd. | Yongqing, the PRC | Yongqing, the PRC | Production and sales of specialized glass | 75% | 25% | Establishment |
| Wujiang CSG Glass Co., Ltd. | Wujiang, the PRC | Wujiang, the PRC | Production and sales of specialized glass | 100% | Establishment | |
| China Southern Glass (Hong Kong) Limited | Hong Kong | Hong Kong | Trading and investment holding | 100% | Establishment | |
| Hebei Panel Glass Co., Ltd. | Yongqing, the PRC | Yongqing, the PRC | Production and sales of ultra-thin electronic glass | 100% | Establishment | |
| Xianning CSG Glass Co Ltd. | Xianning, the PRC | Xianning, the PRC | Production and sales of specialized glass | 75% | 25% | Establishment |
| Xianning CSG Energy Conservation Glass Co Ltd. | Xianning, the PRC | Xianning, the PRC | Glass deep processing | 75% | 25% | Split-off |
| Qingyuan CSG Energy Saving New Materials Co.,Ltd | Qingyuan, the PRC | Qingyuan, the PRC | Production and sales of ultra-thin electronic glass | 100% | Establishment | |
| Shenzhen CSG Display Technology Co., Ltd. | Shenzhen, the PRC | Shenzhen, the PRC | Glass for display device | 60.80% | Acquisition | |
| Xianning CSG Photoelectric Glass Co., Ltd. | Xianning, the PRC | Xianning, the PRC | Photoelectric glass and high-alumina glass | 37.50% | 62.50% | Acquisition |
(2)The significant non-fully-owned subsidiaries of the Group
Unit: RMB
| Subsidiaries | Shareholding of minority shareholders | Total profit or loss attributable to minority shareholders for the year ended 30 June 2017 | Dividends distributed to minority interests for the year ended 30 June 2017 | Minority interest as at 30 June 2017 |
| Shenzhen CSG Display Technology Co., Ltd. | 39.20% | 5,787,351 | 311,685,657 |
(3) The major financial information of the significant non-fully-owned subsidiaries of the Group
Unit: RMB
| Name of Subsidiary | Closing balance | Opening balance | ||||||||||
| Current assets | Non-current assets | Total assets | Current liabilities | Non-current liabilities | Total liabilities | Current assets | Non-current assets | Total assets | Current liabilities | Non-current liabilities | Total liabilities | |
| Shenzhen CSG Display Technology Co., Ltd. | 262,179,100 | 1,347,074,249 | 1,609,253,349 | 505,674,968 | 314,316,352 | 819,991,320 | 211,285,238 | 1,338,686,341 | 1,549,971,579 | 541,303,424 | 233,139,941 | 774,443,365 |
Unit: RMB
| Name of Subsidiary | Occurred in current term | Occurred in previous term | ||||||
| Revenue | Net profit | Total comprehensive income | Cash flows from operating activities | Revenue | Net profit | Total comprehensive income | Cash flows from operating activities | |
| Shenzhen CSG Display Technology Co., Ltd. | 228,993,498 | 14,924,574 | 14,924,574 | 27,884,582 | 37,282,745 | -4,023,839 | -4,023,839 | 19,571,109 |
X. Risk related to financial instrument
The Group's activities expose it to a variety of financial risks: market risk (primarily currency risk and interest rate risk), credit risk andliquidity risk. The Group's overall risk management programme focuses on the unpredictability of financial markets and seeks tominimise potential adverse effects on the Group's financial performance.
(1) Market risk
(a) Foreign exchange risk
The Group’s major operational activities are carried out in Mainland China and a majority of the transactions are denominated in
RMB. However, some of the export business is settled in foreign currency. Besides, the Group is exposed to foreign exchange riskarising from the recognised assets and liabilities, and future transactions denominated in foreign currencies, primarily with respect toUS dollars and Euro. The Group monitors the scale of foreign currency transactions, foreign currency assets and liabilities, and adjustsettlement currency of export business, to furthest reduce the currency risk.
As at 30 June 2017 the carrying amounts in RMB equivalent of the Group’s assets and liabilities denominated in foreign currencies
are summarized below:
| 30 June 2017 | ||||
| USD | HKD | Others | Total | |
| Financial assets denominated in foreign currency- | ||||
| Cash at bank and on hand | 31,014,165 | 9,535,002 | 99,365 | 40,648,532 |
| Receivables | 110,912,922 | 8,563 | 7,337,205 | 118,258,690 |
| 141,927,087 | 9,543,565 | 7,436,570 | 158,907,222 | |
| Financial liabilities denominated in foreign currency- | ||||
| Short-term borrowings | - | 65,092,500 | - | 65,092,500 |
| Payables | 75,305,700 | 266 | 23,476,064 | 98,782,030 |
| 75,305,700 | 65,092,766 | 23,476,064 | 163,874,530 | |
| 31 December 2016 | ||||
| USD | HKD | Others | Total | |
| Financial assets denominated in foreign currency- | ||||
| Cash at bank and on hand | 24,360,614 | 5,551,402 | 840,393 | 30,752,409 |
| Receivables | 105,742,398 | - | 6,917,969 | 112,660,367 |
| 130,103,012 | 5,551,402 | 7,758,362 | 143,412,776 | |
| Financial liabilities denominated in foreign currency- | ||||
| Short-term borrowings | - | 67,087,500 | - | 67,087,500 |
| Payables | 74,140,797 | 275 | 24,217,998 | 98,359,070 |
| 74,140,797 | 67,087,775 | 24,217,998 | 165,446,570 |
As at 30 June 2017, if the currency had weakened/strengthened by 10% against the USD while all other variables had been held
constant, the Group’s net profit for the year would have been approximately RMB 5,662,818 (31 December 2016: approximately
RMB 4,756,788) lower/ higher for various financial assets and liabilities denominated in USD.
As at 30 June 2017, if the currency had strengthened /weakened by 10% against the HKD while all other variables had been held
constant, the Group’s net profit for the year would have been approximately RMB 4,721,682 (31 December 2016: approximately
RMB 5,230,592) higher/lower for various financial assets and liabilities denominated in HKD.
Other changes in exchange rate had no significant influence on the Group's operating activities.
(b) Interest rate risk
The Group's interest rate risk arises from long-term interest bearing borrowings including long-term borrowings and bonds payable.Financial liabilities issued at floating rates expose the Group to cash flow interest rate risk. Financial liabilities issued at fixed ratesexpose the Group to fair value interest rate risk. The Group determines the relative proportions of its fixed rate and floating rate
contracts depending on the prevailing market conditions. As at 30 June 2015, the Group’s long-term interest-bearing debt at variable
rates and fixed rates as illustrated below:
| 30 June 2017 | 31 December 2016 | |
| Debt at fixed rates | 1,570,000,000 | 1,380,000,000 |
| Debt at variable rates | 54,000,000 | 58,660,000 |
| 1,624,000,000 | 1,438,660,000 |
The Group continuously monitors the interest rate position of the Group. Increases in interest rates will increase the cost of new
borrowing and the interest expenses with respect to the Group’s outstanding floating rate borrowings, and therefore could have amaterial adverse effect on the Group’s financial position. The Group makes adjustments timely with reference to the latest market
conditions, which includes increasing/decreasing long-term fixed rate debts at the anticipation of increasing/decreasing interest rate.
(2) Credit risk
Credit risk is managed on the grouping basis. Credit risk mainly arises from cash at bank, notes receivable, accounts receivable andother receivables, etc.
The Group expects that there is no significant credit risk associated with cash at bank since they are deposited at state-owned banksand other medium or large size listed banks. Management does not expect that there will be any significant losses from
non-performance by these counterparties. Furthermore, as the Group’s bank acceptance notes receivable are generally accepted by
the state-owned banks and other large and medium listed banks, the management believes the credit risk should be limited.
In addition, the Group has policies to limit the credit exposure on accounts receivable, other receivables and trade acceptance notesreceivable. The Group assesses the credit quality of and sets credit limits on its customers by taking into account their financialposition, the availability of guarantee from third parties, their credit history and other factors such as current market conditions. Thecredit history of the customers is regularly monitored by the Group. In respect of customers with a poor credit history, the Group willuse written payment reminders, or shorten or cancel credit periods, to ensure the overall credit risk of the Group is limited to acontrollable extent.
(3) Liquidity risk
Cash flow forecasting is performed by each subsidiary of the Group and aggregated by the Group’s finance department in itsheadquarters. The Group’s finance department at its headquarters monitors rolling forecasts of the Group's short-term and long-term
liquidity requirements to ensure it has sufficient cash reserve, while maintaining sufficient headroom on its undrawn committedborrowing facilities from major financial institutions so that the Group does not breach borrowing limits or covenants on any of itsborrowing facilities to meet the short-term and long-term liquidity requirements.
As at 30 June 2017, the Group had net current liabilities of approximately RMB 3.385 billion and committed capital expenditures ofapproximately RMB 390 million. Management will implement the following measures to ensure the liquidation risk limited to acontrollable extent:
(a) The Group will have steady cash inflows from operating activities;(b) The Group will pay the debts that mature and finance the construction projects through the existing bank facilities; and(c) The Group will closely monitoring the payment of construction expenditure in terms of payment time and amount.
The financial liabilities of the Group at the balance sheet date are analysed by their maturity date below at their undiscountedcontractual cash as follows:
| 30 June 2017 | |||||
| Within 1 year | 1 to 2 years | 2 to 5 years | Over 5 years | Total | |
| Short-term borrowings | 2,439,522,457 | - | - | - | 2,439,522,457 |
| Notes payable | 114,500,000 | - | - | - | 114,500,000 |
| Accounts payable | 1,382,500,478 | - | - | - | 1,382,500,478 |
| Interest payable | 98,184,696 | - | - | - | 98,184,696 |
| Dividend payable | 207,533,556 | 207,533,556 | |||
| Other payables | 844,823,887 | - | - | - | 844,823,887 |
| Other current liabilities | 300,000 | - | - | 300,000 | |
| Non-current liabilities due within one year | 1,117,193,707 | - | - | - | 1,117,193,707 |
| Long-term borrowings | 78,992,500 | 306,409,062 | 1,474,047,671 | - | 1,859,449,233 |
| Long-term payables | - | 733,909,378 | 104,962,292 | - | 838,871,670 |
| 6,283,551,281 | 1,040,318,440 | 1,579,009,963 | - | 8,902,879,684 | |
| 31 December 2016 | |||||
| Within 1 year | 1 to 2 years | 2 to 5 years | Over 5 years | Total | |
| Short-term borrowings | 4,043,966,809 | - | - | - | 4,043,966,809 |
| Notes payable | 20,000,000 | - | - | - | 20,000,000 |
| Accounts payable | 1,169,869,370 | - | - | - | 1,169,869,370 |
| Interest payable | 78,225,904 | - | - | - | 78,225,904 |
| Other payables | 188,321,450 | - | - | - | 188,321,450 |
| Other current liabilities | 300,000 | - | - | 300,000 | |
| Non-current liabilities due within one year | 1,068,336,787 | - | - | - | 1,068,336,787 |
| Long-term borrowings | 73,188,850 | 290,439,172 | 1,287,871,345 | - | 1,651,499,367 |
| 6,642,209,170 | 290,439,172 | 1,287,871,345 | - | 8,220,519,687 | |
XI. Disclosure of fair value
1. Fair value of financial assets and financial liabilities not measured at fair value
The group’s financial assets and financial liabilities measured at amortized cost mainly include: accounts receivable, short-term
borrowings, accounts payable, long term borrowings, bonds payable , long-term payables, ect.Except for financial liabilities listed below, the carrying amount of the other financial assets and liabilities not measured at fair valueis a reasonable approximation of their fair value.
| 30 June 2017 | 31 December 2016 | ||||||
| Carrying amount | Fair value | Carrying amount | Fair value | ||||
| Financial liabilities - | |||||||
| Corporate bonds payable | 1,000,000,000 | 999,500,000 | 1,000,000,000 | 1,009,177,000 | |||
| Medium term notes | 1,200,000,000 | 1,257,000,000 | 1,200,000,000 | 1,175,308,800 |
| 2,200,000,000 | 2,256,500,000 | 2,200,000,000 | 2,184,485,800 |
The fair values of payables and medium-term notes are the present value of the contractually determined stream of future cash flowsat the rate of interest applied at that time by the market to instruments of comparable credit status and providing substantially thesame cash flows on the same terms, thereinto bonds payable belongs to Level 1 and medium term notes belong to Level 2.
XII. Related party and related Transaction
1. Parent company of the Company
The Company has no parent company.
2. Subsidiaries of the Company
The information of subsidiaries of the Company can be found in Notes to the financial statement.
3. Joint venture of the Company
Shenzhen Nanbo Display Technology Co., Ltd. was transferred to the subsidiary of the Company from joint venture on 3 June, 2016.The Company has no joint venture on 30 June 2017.
4. Other related parties
| Name of other related parties | Relations between other related parties and the Company |
| Shenzhen Jushenghua Co. Ltd. | The person acting in concert of the Company's largest shareholder |
5. Related transaction(1) Transaction of acquisition of goods, offering and reception of labor service
List of selling goods/offering labor service
Unit: RMB
| Related party | Contents of related transaction | Occurred in this term | Occurred in previous term |
| Shenzhen CSG Display Technology Co., Ltd. | sales of goods | 9,665,275 |
6. OthersCommitments in relation to related parties
The commitments in relation to related parties contracted for but not yet necessary to be recognised on the balance sheet by theGroup as at the balance sheet date are as follows:
On 22 November 2016, the Company received a letter from its shareholder, Jushenghua, stating that to support the Group’s steady
operation and development, Jushenghua, as the shareholder of the Company, would like to offer interest-free borrowings with thetotal amount of RMB 2,000,000,000 to the Company or through related parties designated by it. For any borrowing drawn, itsrepayment date is negotiated by the Company and Jushenghua upon withdrawal.When a borrowing is due, if an extension is needed,
the Company can apply to the actual lender based on the Company’s operation; where the actual lender agrees with the extension
application, the term of the borrowing is extended accordingly. As of 30 June 2017, the shareholder had provided RMB 700,000,000long-term interest-free loans and RMB 650,000,000 short-term interest-free loans.
XIII. Commitments and contingency
Capital expenditures commitments
Capital expenditures contracted for by the Group at the balance sheet date but are not yet necessary to be recognised on the balancesheet are as follows:
| 30 June 2017 | 31 December 2016 | |
| Buildings,machinery and equipment | 386,575,774 | 280,938,401 |
XIV. Other significant events
1. Segment information(1) Definition foundation and accounting policy of segment
To meet operating strategies and requirements of business development, the Group adjusted its operating structure in the period. The
Group’s management allocated resources, evaluated segment performance, updated reporting segment, and disclosed segment
information according to revised operating segments in the period. Segment information of prior year had been restated inaccordance with updated reporting segments.
-Glass segment, being engaged in the production and sales of glass products and silica sand required for the production of glass-Solar Energy Segment, being engaged in the production and sales of polysilicon and solar modules, as well as construction and
operation of photovoltaic power plants-Electronic glass and display Segment, being engaged in the production and sales of ultrathin electronic glass and display
products
The reportable segments of the Group are the business units that provide different products or service. Different businesses requiredifferent technologies and marketing strategies. The Group, therefore, separately manages the production and operation of eachreportable segment and evaluates their operating results respectively, in order to make decisions about resources to be allocated tothese segments and to assess their performance.
Inter-segment transfer prices are measured by reference to selling prices to third parties.
The assets are allocated based on the operations of the segment and the physical location of the asset. The liabilities are allocatedbased on the operations of the segment. Expenses indirectly attributable to each segment are allocated to the segments based on the
proportion of each segment’s revenue.
(2)Financial information of segment
Unit: RMB
| Item | Glass | Solar Energy | Electronic glass and display | Others | Unallocated | Elimination | Total |
| Revenue from external customers | 3,206,687,159 | 1,369,755,550 | 367,265,891 | 629,261 | 4,944,337,861 | ||
| Inter-segment revenue | 18,599,065 | 18,083,108 | 198,902 | 26,666,005 | -63,547,080 | ||
| Interest income | 491,062 | 2,397,326 | 56,932 | 3,528,724 | -2,287,332 | 4,186,712 | |
| Interest expenses | 70,412,931 | 37,231,830 | 15,045,705 | 22,791,452 | -2,287,332 | 143,194,586 | |
| Asset impairment reversal | 946,289 | -62,414 | 217,114 | 7,706 | 1,108,695 | ||
| Depreciation and amortization expenses | 299,606,450 | 134,711,851 | 62,922,138 | 3,079,477 | 500,319,916 |
| Total profit | 392,627,615 | 118,589,867 | 37,245,148 | -773 | -64,588,492 | -3,206,296 | 480,667,069 |
| Income tax expenses | 52,290,936 | 13,020,016 | 15,176,880 | -34,811 | 80,453,021 | ||
| Net profit | 340,336,679 | 105,569,851 | 22,068,268 | -773 | -64,553,681 | -3,206,296 | 400,214,048 |
| Total assets | 8,982,177,389 | 4,952,619,591 | 2,968,323,479 | 134,388 | 1,027,026,766 | 17,930,281,613 | |
| Total liabilities | 2,162,476,308 | 793,195,356 | 695,646,857 | 2,502,814 | 5,865,531,905 | 9,519,353,240 | |
| Additions of non-current assets other than long-term equity investments | 92,971,231 | 404,028,047 | 222,862,634 | 1,886,129 | 721,748,041 |
(3) Other statement
The Group’s revenue from external customers domestically and in foreign countries or geographical areas, and the total non-current
assets other than financial assets and deferred tax assets located domestically and in foreign countries or geographical areas are asfollows:
| Revenue from external customers | Jan.-Jun. 2017 | Jan.-Jun. 2016 |
| Mainland | 4,453,794,331 | 3,742,134,566 |
| Hong Kong | 159,110,247 | 46,568,633 |
| Europe | 10,469,923 | 34,282,849 |
| Asia (other than Mainland and Hong Kong) | 284,803,871 | 316,839,177 |
| Australia | 23,668,506 | 19,557,991 |
| North America | 9,235,672 | 64,008,117 |
| Other region | 3,255,311 | 4,774,309 |
| 4,944,337,861 | 4,228,165,642 |
| Total non-current assets | 30 June 2017 | 31 December 2016 |
| Mainland | 14,606,514,921 | 14,392,447,014 |
| Hong Kong | 12,563,601 | 12,551,254 |
| 14,619,078,522 | 14,404,998,268 |
The Group has a large number of customers, but no revenue from a single customer exceed 10% or more of the Group’s revenue.
XV. Notes to Financial Statements of the Parent Company
1. Other accounts receivable(1) Other accounts receivable disclosed by category:
Unit: RMB
| Categories | Closing balance | Openning balance | ||||||||
| Book balance | Bad debt provision | Book value | Book balance | Bad debt provision | Book value | |||||
| Amount | Proportion % | Amount | Proportion % | Amount | Proportion % | Amount | Proportion % | |||
| Other accounts receivable withdrawn bad debt provision according to credit risks characteristics | 3,416,531,057 | 100% | 16,511 | 0% | 3,416,514,546 | 3,863,129,835 | 100% | 8,806 | 0% | 3,863,121,029 |
| Total | 3,416,531,057 | 100% | 16,511 | 0% | 3,416,514,546 | 3,863,129,835 | 100% | 8,806 | 0% | 3,863,121,029 |
Other accounts receivable with large amount and were provided bad debt provisions individually at end of period.
□ Applicable √ Non-applicable
Other accounts receivable in the portfolio on which bad debt provisions were provided on aging analysis basis
□ Applicable √ Non-applicable
Other accounts receivable in the portfolio on which bad debt provisions were provided on percentage basis
√ Applicable □ Non-applicable
Unit: RMB
| Name of portfolio | Closing balance | ||
| Other receivable accounts | Bad debt provision | proportion% | |
| portfolio 1 | 825,597 | 16,511 | 2% |
| portfolio 2 | 3,415,705,460 | ||
| Total | 3,416,531,057 | 16,511 | 0% |
Explanation for determining the basis of the portfolio:
Other receivable accounts in the portfolio on which bad debt provisions were provided on other basis
□ Applicable √ Non-applicable
(2) Accounts receivable withdraw, reversed or collected during the reporting period
The amount of provision for bad debts during the report period was RMB 7,705. The amount of the reversed or collected part duringthe report period was RMB 0.
(3) Other accounts receivable classified by the nature of accounts
Unit: RMB
| Nature of accounts | Ending book balance | Beginning book balance |
| Others | 825,597 | 423,416 |
| Accounts receivable of related party | 3,415,705,460 | 3,862,706,419 |
| Total | 3,416,531,057 | 3,863,129,835 |
(4) Top 5 of the closing balance of the other accounts receivable collated according to the arrears party
Unit: RMB
| Name of the company | Nature of accounts | Closing balance | Ages | Proportion of the total year end balance of the accounts receivable (%) | Closing balance of bad debt provision |
| Yichang CSG Polysilicon Co., Ltd. | Subsidiary | 1,304,538,480 | Within 1 year | 38% | 0 |
| Hebei CSG Glass Co., Ltd. | Subsidiary | 333,719,030 | Within 1 year | 10% | 0 |
| Qingyuan CSG Energy Conservation New Meterials Co., Ltd. | Subsidiary | 298,547,212 | Within 1 year | 9% | 0 |
| Dongguan CSG PV-tech Co., Ltd. | Subsidiary | 226,825,146 | Within 1 year | 7% | 0 |
| Yichang CSG Display Co.,Ltd. | Subsidiary | 195,317,564 | Within 1 year | 6% | 0 |
| Total | -- | 2,358,947,432 | -- | 70% |
2. Long-term equity investment
Unit: RMB
| Item | Closing balance | Opening balance | ||||
| Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
| Investment in subsidiaries | 4,805,440,632 | 15,000,000 | 4,790,440,632 | 4,805,440,632 | 15,000,000 | 4,790,440,632 |
| Total | 4,805,440,632 | 15,000,000 | 4,790,440,632 | 4,805,440,632 | 15,000,000 | 4,790,440,632 |
(1) Inventment in subsidiaries
Unit: RMB
| Invested company | Opening balance | Increase in the term | Decrease in the term | Closing balance | Provision for impairment of the current period | Closing balance of impairment provision |
| Chengdu CSG Glass Co., Ltd. | 146,679,073 | 146,679,073 | ||||
| Sichuan CSG Energy Conservation | 115,290,583 | 115,290,583 | ||||
| Tianjin Energy Conservation Glass Co. Ltd | 242,902,974 | 242,902,974 | ||||
| Dongguan CSG Architectural Glass Co., Ltd. | 193,618,971 | 193,618,971 | ||||
| Dongguan CSG Solar Glass Co., Ltd. | 349,446,826 | 349,446,826 | ||||
| Yichang CSG Polysilicon Co., Ltd. | 632,958,044 | 632,958,044 |
| Wujiang CSG North-east Architectural Glass Co., Ltd. | 251,313,658 | 251,313,658 | ||||
| Hebei CSG Glass Co., Ltd. | 261,998,368 | 261,998,368 | ||||
| China Southern Glass (Hong Kong) Limited | 85,742,211 | 85,742,211 | ||||
| Wujiang CSG Glass Co., Ltd. | 562,179,564 | 562,179,564 | ||||
| Hebei Panel Glass Co., Ltd. | 243,062,801 | 243,062,801 | ||||
| Jiangyou CSG Mining Development Co. Ltd. | 100,725,041 | 100,725,041 | ||||
| Xianning CSG Glass Co Ltd. | 177,041,818 | 177,041,818 | ||||
| Xianning CSG Energy Conservation Glass Co Ltd. | 161,281,576 | 161,281,576 | ||||
| Qingyuan CSG Energy Saving New Materials Co.,Ltd | 300,185,609 | 300,185,609 | ||||
| Shenzhen CSG Financial Leasing Co., Ltd. | 133,500,000 | 133,500,000 | ||||
| Shenzhen CSG PV Energy Co., Ltd. | 100,000,000 | 100,000,000 | ||||
| Shenzhen CSG Display Technology Co., Ltd. | 542,027,830 | 542,027,830 | ||||
| Xianning CSG Photoelectric Glass Co., Ltd. | 38,250,000 | 38,250,000 | ||||
| Others(ii) | 167,235,685 | 167,235,685 | 15,000,000 | |||
| Total | 4,805,440,632 | 4,805,440,632 | 15,000,000 |
(2) Other notes
As at June 30, 2017, long-term equity investment in subsidiaries contained the restricted stocks granted by the Company to the
Employees of subsidiaries of the company, and the Company did not charge any fees for the restricted stocks which was deemed asan increase of costs of Long-term equity investment for subsidiaries by RMB 109,035,321 (31 December 2016:
RMB109,035,321).
The subsidiaries which have made provision for impairment were basically closed down in the previous year, and the provision forimpairment for the long-term equity investment of them had been made by the Company according to the recoverable amount.
3. Operating income and operating costs
Unit: RMB
| Item | Occurred in this term | Occurred in previous term | ||
| Income | Costs | Income | Costs | |
| Main business | 0 | 0 | 0 | 0 |
| Other business | 27,295,266 | 0 | 1,077,394 | 60,334 |
| Total | 27,295,266 | 0 | 1,077,394 | 60,334 |
4. Investment income
Unit: RMB
| Item | Occurred in this term | Occurred in previous term |
| Long-term equity investment accounted by cost method | 389,430,562 | |
| Long-term equity investment accounted by equity method | 9,850,045 | |
| Total | 399,280,607 |
XVI. Supplementary Information
1. Items and amounts of extraordinary profit (gains)/loss
√Applicable □ Not applicable
Unit: RMB
| Item | Amount | Note |
| Gains/losses from the disposal of non-current asset (including the write-off that accrued for impairment of assets) | -71,756 | |
| Governmental subsidy reckoned into current gains/losses (not including the subsidy enjoyed in quota or ration according to national standards, which are closely relevant to enterprise’s business) | 38,501,199 | |
| Other non-operating income and expenditure except for the aforementioned items | 541,795 | |
| Less: Impact on income tax | 5,814,362 | |
| Impact on minority shareholders’ equity (post-tax) | 1,109,957 | |
| Total | 32,046,919 | -- |
Explain reasons for the extraordinary profit (gain)/loss defined by Q&A Announcement No.1 on Information Disclosure forCompanies Offering Their Securities to the Public --- Extraordinary Profit/loss, and the items defined as recurring profit (gain)/lossaccording to the lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for CompaniesOffering Their Securities to the Public --- Extraordinary Profit/loss.
□Applicable √ Not applicable
2. Return on equity and earnings per share
| Profit in the report period | The weighted average net assets ratio | Earnings per share | |
| basic earnings per share (RMB/share) | diluted earnings per share (RMB/share) | ||
| Net profit attributable to shareholders of the listed company(RMB) | 4.94% | 0.19 | 0.19 |
| Net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses(RMB) | 4.54% | 0.17 | 0.17 |
3. Difference of accounting data under domestic and overseas accounting standards
(1) Differences of the net profit and net assets disclosed in financial report prepared under internationaland Chinese accounting standards
□ Applicable √ Not applicable
(2) Difference of the net profit and net assets disclosed in financial report prepared under overseas andChinese accounting standards
□ Applicable √ Not applicable
Section X. Documents available for Reference
I. Text of the Semi-annual Report carrying the legal representative’s signature;
II. Text of the financial report carrying the signatures and seals of the legal representative,responsible person in charge of accounting and person in charge of financial institution;
III. All texts of the Company’s documents and original public notices disclosed in the papers
appointed by CSRC in the report period.
Board of Directors ofCSG Holding Co., Ltd.22 August 2017