CSG HOLDING CO., LTD.
THE FIRST QUARTER REPORT 2020
Chairman of the Board:
CHEN LIN
April 2020
Section I Important NoticeBoard 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.All directors were present at the meeting of the Board for deliberating the First Quarter Report ofthe Company in person.Ms. Chen Lin, Chairman of the Board, Mr. Wang Jian, responsible person in charge of theaccounting and Ms. Wang Wenxin, principal of the financial department (accounting officer) declarethat the Financial Report enclosed in the First Quarter Report 2020 is true, accurate and complete.This report is prepared both in Chinese and English. Should there be any inconsistency between theChinese and English versions, the Chinese version shall prevail.
Section II The basic situation of the CompanyI. Main accounting data and financial indicators
Whether the company need to retroactively adjust or restate the previous year's accounting data or not
□Yes √ No
| The 1st quarter of 2020 | The 1st quarter of 2019 | Percentage of change (%) | |
| Operating income (RMB) | 1,733,965,637 | 2,222,721,514 | -21.99% |
| Net profit attributable to shareholders of the listed company(RMB) | 111,278,288 | 132,188,324 | -15.82% |
| Net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses(RMB) | 101,805,077 | 82,573,767 | 23.29% |
| Net cash flow arising from operating activities(RMB) note(1) | -11,126,768 | 136,317,362 | -108.16% |
| Basic earnings per share (RMB/Share) | 0.04 | 0.04 | - |
| Diluted earnings per share (RMB/Share) | 0.04 | 0.04 | - |
| Weighted average ROE (%) | 1.16% | 1.44% | -0.28% |
| 31 March 2020 | 31 December 2019 | Percentage of change (%) | |
| Total assets (RMB) | 20,247,986,997 | 18,201,235,959 | 11.25% |
| Net assets attributable to shareholder of listed company(RMB) | 9,608,165,285 | 9,495,588,878 | 1.19% |
Note (1)：Due to the epidemic, sales revenue reduced.
| The total share capital of the company as of the previous trading day of disclosure ( share ) | 3,106,915,005 |
| Fully diluted earnings per share calculated with latest equity ( RMB/share ) | 0.04 |
Note: The total amount of 1,281,158 shares of restricted stocks held by 18 unqualified original incentives, which had beenrepurchased but not yet cancelled, were deducted from the total share capital.
Items and amounts of extraordinary profit (gains)/losses
√Applicable □ Not applicable
Unit: RMB
| Item | Amount from beginning of the year to the end of the report period | Note |
| Gains/losses from the disposal of non-current asset (including the write-off that accrued for impairment of assets) | -494,285 |
| 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) | 20,792,152 | |
| Loss and profit on external entrusted loan | 5,546,383 | |
| Other non-operating income and expenditure except for the aforementioned items | -16,631,286 | |
| Less: Impact on income tax | -308,097 | |
| Impact on minority shareholders’ equity (post-tax) | 47,850 | |
| Total | 9,473,211 | -- |
For the non-recurring profit and loss items defined by the company in accordance with Q&A Announcement No.1 on InformationDisclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss, and the non-recurring profit and lossitems listed in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public ---Extraordinary Profit/loss. are defined as recurring profit and loss items, the reasons shall be explained.
□ Applicable √ Not applicable
During the report period, the Company didn’t have the case of extraordinary profit (gains)/loss defined as a regular profit and lossproject, which was defined and enumerated according to the lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 onInformation Disclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss.II. Total of shareholders at the end of the report period and particulars about the shares heldby the top ten shareholders
1. The total number of common shareholders and the number of preference shareholders with voting rightsrecovered as well as the top ten shareholders
Unit: Share
| The total number of common shareholders at the end of the report period | 148,844 | The total number of preference shareholders with voting rights recovered at end of report period (if applicable) | 0 | |||||
| Particulars about the shares held by the top ten shareholders | ||||||||
| Name of shareholder | Nature of shareholder | Proportion of shares held (%) | Amount of shares held | Amount of restricted shares held | Number of share pledged/frozen | |||
| Share status | Amount | |||||||
| Foresea Life Insurance Co., Ltd. – Hailiniannian | Domestic non state-owned legal person | 15.01% | 466,386,874 | |||||
| Foresea Life Insurance Co., Ltd. – Universal Insurance Products | Domestic non state-owned legal person | 3.81% | 118,425,007 | |||||
| Zhongshanruntian Investment Co., Ltd. | Domestic non state-owned legal person | 2.79% | 86,633,447 | pledged | 81,000,000 | |||
| Foresea Life Insurance Co., Ltd. – Own | Domestic non state-owned | 2.08% | 64,765,161 | |||||
| Fund | legal person | |||||||||
| Central Huijin Asset Management Ltd. | State-owned legal person | 1.86% | 57,915,488 | |||||||
| Hong Kong Securities Clearing Co., Ltd. | Foreign legal person | 1.80% | 56,039,290 | |||||||
| China Galaxy International Securities (Hong Kong) Co., Limited | Foreign legal person | 1.33% | 41,399,778 | |||||||
| China Merchants Securities (HK) Co., Limited | State-owned legal person | 1.05% | 32,486,067 | |||||||
| Shenzhen International Holdings (SZ) Limited | State-owned legal person | 0.94% | 29,095,000 | |||||||
| VANGUARD EMERGING MARKETS STOCK INDEX FUND | Foreign legal person | 0.62% | 19,320,233 | |||||||
| Particulars about the top ten shareholders with un-restrict shares held | ||||||||||
| Shareholders’ name | Amount of unrestricted shares held at the end of the period | Type of shares | ||||||||
| Type | Amount | |||||||||
| Foresea Life Insurance Co., Ltd. – Hailiniannian | 466,386,874 | RMB ordinary shares | 466,386,874 | |||||||
| Foresea Life Insurance Co., Ltd. – Universal Insurance Products | 118,425,007 | RMB ordinary shares | 118,425,007 | |||||||
| Zhongshanruntian Investment Co., Ltd. | 86,633,447 | RMB ordinary shares | 86,633,447 | |||||||
| Foresea Life Insurance Co., Ltd. – Own Fund | 64,765,161 | RMB ordinary shares | 64,765,161 | |||||||
| Central Huijin Asset Management Ltd. | 57,915,488 | RMB ordinary shares | 57,915,488 | |||||||
| Hong Kong Securities Clearing Co., Ltd. | 56,039,290 | RMB ordinary shares | 56,039,290 | |||||||
| China Galaxy International Securities (Hong Kong) Co., Limited | 41,399,778 | Domestically listed foreign shares | 41,399,778 | |||||||
| China Merchants Securities (HK) Co., Limited | 32,486,067 | Domestically listed foreign shares | 32,486,067 | |||||||
| Shenzhen International Holdings (SZ) Limited | 29,095,000 | RMB ordinary shares | 29,095,000 | |||||||
| VANGUARD EMERGING MARKETS STOCK INDEX FUND | 19,320,233 | Domestically listed foreign shares | 19,320,233 | |||||||
| Statement on associated relationship or consistent action among the above shareholders: | Among shareholders as listed above, Foresea Life Insurance Co., Ltd.-HailiNiannian, Foresea Life Insurance Co., Ltd.-Universal Insurance Products, Foresea Life Insurance Co., Ltd.-Own Fund are all held by Foresea Life Insurance Co., Ltd. Zhongshanruntian Investment 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 40,187,904 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 the top ten | N/A | |||||||||
Whether the top ten common shareholders or the top ten common shareholders holding unrestricted shares had a buy-back agreementdealing in the report period or not.
□ Yes √ No
The top ten common shareholders or the top ten common shareholders holding unrestricted shares of the Company had no buy-backagreement dealing in the report period.
2. The total number of preferred shareholders of the company and particulars about the top ten preferredshareholders
□ Applicable √ Not applicable
Section III Important eventsI. Particulars and explanations about significant changes in main accounting statements andfinancial indices
√Applicable □Not applicable
Unit: RMB 0,000
| Note | 31 March 2020 | 31 December 2019 | Amount of change | Percentage of change | |
| Monetary Fund | (1) | 384,623 | 198,698 | 185,925 | 94% |
| Notes receivable | (2) | 14,042 | 29,702 | -15,660 | -53% |
| Advance payment | (3) | 11,448 | 7,820 | 3,628 | 46% |
| Inventories | (4) | 121,176 | 81,232 | 39,944 | 49% |
| Other current assets | (5) | 15,540 | 44,800 | -29,260 | -65% |
| Construction in progress | (6) | 252,242 | 190,214 | 62,028 | 33% |
| Advance from customers | (7) | - | 29,280 | -29,280 | -100% |
| Contract liability | (8) | 28,951 | - | 28,951 | - |
| Payroll payable | (9) | 16,391 | 33,787 | -17,396 | -51% |
| Taxes payable | (10) | 7,855 | 11,543 | -3,688 | -32% |
| Note | Jan.-Mar.2020 | Jan.-Mar.2019 | Amount of change | Percentage of change | |
| Credit impairment loss | (11) | 376 | 682 | -306 | -45% |
| Income from asset disposal | (12) | -49 | 688 | -737 | -107% |
| Other income | (13) | 2,079 | 4,746 | -2,667 | -56% |
| Non-operating expenses | (14) | 1,722 | 142 | 1,580 | 1113% |
| Minority shareholder gains and losses | (15) | 71 | 375 | -304 | -81% |
| Other comprehensive income | (16) | 149 | -122 | 271 |
Notes:
(1) The increase in monetary fund was mainly due to the increase in cash received from the company's bonds issued in the currentperiod.
(2) The decrease in notes receivable was mainly due to the collection and use of notes at maturity.
(3)The increase in advance payment was mainly due to the increase of prepayment materials.
(4) The increase in inventories was mainly due to the decrease in shipments affected by the outbreak.
(5) The decrease in other current assets was mainly due to the collection of entrusted loans in the current period.
(6) The increase in construction in progress was mainly due to transfer of fixed assets of some subsidiaries to the technical renovation
of construction in process.
(7) The decrease in advance from customers was mainly due to the reclassification of advance from customers and contract liabilitiesaccording to the new revenue criteria.
(8) The increase in contract liability was mainly due to the reclassification of advance payment and contract liability according to thenew revenue criterion.
(9) The decrease in payroll payable was mainly due to the payment of year-end bonus at the end of last year.
(10) The decrease in taxes payable was mainly due to the tax paid for the end of the previous reporting period.
(11) The decrease in credit impairment loss was mainly due to the reduction of accounts receivable bad debt provision.
(12) The decrease in income from asset disposal was mainly due to the disposal of assets held for sale in the previous period.
(13) The decrease in other income was mainly due to the reduction of the amortization of current government subsidies.
(14) The increase in non-operating expenses was mainly due to the increase of donation expenses during the epidemic.
(15) The decrease in profit and loss of minority shareholders was mainly due to the decrease in the net profit of the subsidiary withminority shareholders.
(16) The increase in other comprehensive income was mainly due to the translation difference of foreign currency statements.II. The progress and the impact of material events and analysis on the solutions
√Applicable □Not applicable
1. Ultra-short-term financing bills
On May 14, 2018, the Company’s 2017 annual shareholders’ meeting deliberated and approved the resolution on the application forregistration and issuance of ultra-short-term financing bills, which agreed that the Company should register and issue ultra-short-termfinancing bills with a registered amount not exceeding 4 billion yuan (not subject to the restriction that the amount of ultra-short-ermissued shall not exceed 40% of net assets). With the period of validity of the quota not longer than two years, such ultra-short-termfinancing bills will be issued by installments in accordance with the actual capital needs of the Company and the situation ofinter-bank market funds. On Sep. 17, 2018, the Chinese Association of Interbank Market Traders held its 63rd registration meeting in2018, and decided to approve the registration of the ultra-short-term financing bills with a total amount of 1.5 billion yuan and avalidity period of two years. The ultra-short-term financing bills are underwritten jointly by Minsheng Bank of China Limited andIndustrial Bank Co., Ltd, and can be issued by installments within the validity period of registration. On February 21, 2020, thecompany issued ultra-short-term financing bonds with a total amount of 300 million yuan and a term of 270 days in the first phase of2020, with an interest rate of 4% and a payment date of November 21, 2020.
2. Medium-term notes
On 10 December 2014, the First Extraordinary Shareholders’ General Meeting 2014 of CSG Holding Co., Ltd deliberated andapproved the proposal of application for registration and issuance of medium-term notes with a total amount of RMB 1.2 billion atmost. On 21 May 2015, National Association of Financial Market Institutional Investors (NAFMII) held the 32nd registrationmeeting of 2015, in which NAFMII decided to accept the registration of the Company’s medium-term notes, amounting to RMB 1.2billion 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 onJul.14, 2015,the Company issued the first phase of medium-term notes with a 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 forregistration and issuance of medium-term notes with a total amount of RMB 0.8 billion, which could be issued by stages withinperiod of validity of the registration according to the Company’s actual demands for funds and the status of inter-bank funds. On 2
March 2018, National Association of Financial Market Institutional Investors (NAFMII) held the 14
thregistration meeting of 2018, inwhich NAFMII decided to accept the registration of the Company’s medium-term notes, amounting to RMB 0.8 billion and valid fortwo years. Shanghai Pudong Development Bank Co., Ltd. and China CITIC Bank Corporation Limited were joint lead underwritersof these medium-term notes which could be issued by stages within period of validity of the registration. On May 4, 2018, theCompany issued the first phase of medium-term notes with a total amount of RMB 0.8 billion and valid term of three years at theissuance rate of 7%, which will be redeemed on May 4, 2021.For details, please refer to www.chinabond.com.cn and www.chinamoney.com.cn.
3. Public issuance of corporate bonds
On March 2, 2017, the 2nd Extraordinary General Meeting of Shareholders of 2017 deliberated and approved “the Proposal on thePublic Issuance of Corporate Bonds for Qualified Investors". On February 27, 2019, the First Extraordinary General Meeting ofShareholders of 2019 deliberated and approved “the Proposal on Extending the Validity of the Shareholders' Meeting Resolution forthe Public Issuance of Corporate Bonds for Qualified Investors”, and agreed the Company to issue corporate bonds with a total issueof no more than RMB 2 billion and a term of no more than 10 years.
On July 22, 2019, the Company received the Reply on Approving the Public Issuance of Corporate Bonds by CSG Holding Co., Ltd.to Qualified Investors (ZHJXK[2019] No. 1140) issued by China Securities Regulatory Commission. From Mar. 24, 2020 to Mar. 25,2020, the Company issued the first phase of corporate bonds with a total amount of RMB 2.00 billion and valid term of three years atthe issuance rate of 6% ,which will be redeemed on Mar. 25, 2023.
On March 12, 2020, the 1st Extraordinary General Meeting of Shareholders of 2020 deliberated and approved “the Proposal on thePublic Issuance of Corporate Bonds to Qualified Investors”, and agreed the Company to issue corporate bonds with a total issue of nomore than RMB 1.8 billion and a term of no more than 10 years.
4. The interim meeting of the 8th board of directors of the Company held on Dec. 20, 2019 approved the resolution that the Companywould issue RMB 300.00 million entrusted loans to TengchongYuezhou Water Investment and Development Co., Ltd, with validterm of three months and annual interest rate at 8.5%. By Mar. 24, 2020, the principal and income of the entrusted loan had beenrecovered as agreed in contract.
5. Non-public issuance of A shares
The interim meeting of the 8th board of directors of the Company held on Mar. 5, 2020 deliberated and approved the relatedproposals of non-public issuance of A shares, and agreed the Company to issue A shares privately. The proposals were deliberatedand approved by the 2nd Extraordinary General Meeting of Shareholders of 2020 which held on April 16, 2020.For details, please refer to the relevant contents published on juchao information network (www.cninfo.com.cn) on March 6 andApril 17, 2020.Progress of implementation of share repurchase
□Applicable √Not applicable
Progress of implementation of the reduction of there purchased shares by means of centralized price bidding
□Applicable √Not applicable
III. Failure in due fulfillment of commitments of the actual controllers, shareholders, affiliates,and acquirers of listed company as well as the listed company during the report period
□Applicable √Not applicable
It did not exist that commitments of the actual controllers, shareholders, affiliates, and acquirers of listed company as well as thelisted company failed to be fulfilled on time during the report period.IV. Predict of the business performance from January to June 2020
Warnings and reasons of the predict that the cumulative net profit from the begin of the year to the end of next report period may beloss or have great changes comparing with the same period of last year
□Applicable √Not applicable
V. Securities investment
□ Applicable √ Not applicable
There was no securities investment during the report period.VI. Entrusted Financing
□ Applicable √ Not applicable
There was no Entrusted Financing during the report period
VII. Derivative investment
□ Applicable √ Not applicable
There was no derivative investment during the report period.
VIII. Registration form for receiving research, communication and interview during thereport period
□ Applicable √ Not applicable
The Company did not receive any research, communication or interviews during the report period.
IX. Particulars about illegal external guarantee
□ Applicable √Not applicable
The Company had no illegal external guarantee during the report period.X. Particulars about non-operating fund of listed company which is occupied by controllingshareholder and its affiliated enterprises
□ Applicable √ Not applicable
There’s no non-operating fund of listed company occupied by controlling shareholder and its affiliated enterprises during thereport period.
Section IV Financial Report
I. Financial Statements
1. Consolidated balance sheet
Prepared by CSG Holding Co., Ltd.
Unit: RMB
| Item | 2020-3-31 | 2019-12-31 |
| Current asset: | ||
| Monetary Fund | 3,846,233,991 | 1,986,980,418 |
| Notes receivable | 140,418,023 | 297,023,380 |
| Accounts receivable | 823,778,059 | 649,681,177 |
| Receivables financing | 285,058,513 | 258,296,826 |
| Prepayments | 114,478,403 | 78,196,027 |
| Other receivables | 211,774,103 | 202,854,864 |
| Inventories | 1,211,763,346 | 812,321,690 |
| Other current assets | 155,404,297 | 447,995,931 |
| Total current assets | 6,788,908,735 | 4,733,350,313 |
| Non-current assets: | ||
| Fixed assets | 9,068,360,284 | 9,783,037,301 |
| Construction in progress | 2,522,416,100 | 1,902,140,035 |
| Intangible assets | 1,118,306,095 | 1,044,826,287 |
| Development expenditure | 97,761,017 | 85,240,356 |
| Goodwill | 315,097,756 | 315,097,756 |
| Long-term prepaid expenses | 10,973,411 | 11,351,431 |
| Deferred tax assets | 210,292,966 | 205,792,587 |
| Other non-current assets | 115,870,633 | 120,399,893 |
| Total non-current assets | 13,459,078,262 | 13,467,885,646 |
| Total assets | 20,247,986,997 | 18,201,235,959 |
| Current liabilities: | ||
| Short-term loan | 2,289,050,367 | 2,240,969,137 |
| Notes payable | 171,724,911 | 232,063,968 |
| Accounts payable | 1,280,281,135 | 1,100,531,779 |
| Advance from customers | 292,803,811 | |
| Contract liability | 289,510,630 | |
| Payroll pay | 163,913,820 | 337,866,246 |
| Taxes payable | 78,552,174 | 115,425,044 |
| Other payables | 378,107,241 | 351,374,775 |
| Incl.: Interest payable | 102,902,279 | 73,251,086 |
| Dividend payable | 2,985,563 | 2,985,563 |
| Non-current liabilities due within one year | 1,544,734,218 | 1,712,456,928 |
| Other current liabilities | 300,000 | 300,000 |
| Total current liabilities | 6,196,174,496 | 6,383,791,688 |
| Non-current liabilities: | ||
| Long term loan | 1,471,322,500 | 1,320,225,000 |
| Bonds payable | 1,991,303,521 | |
| Long-term payables | 70,233,958 | 87,240,529 |
| Deferred income | 507,674,359 | 513,925,557 |
| Deferred income tax liabilities | 32,135,757 | 30,197,657 |
| Total non-current liabilities | 4,072,670,095 | 1,951,588,743 |
| Total Liabilities | 10,268,844,591 | 8,335,380,431 |
| Owners' equity: | ||
| Share capital | 3,106,915,005 | 3,106,915,005 |
| Capital reserve | 683,219,358 | 683,219,358 |
| Less: treasury shares | 118,066,397 | 118,066,397 |
| Other comprehensive income | 8,058,407 | 6,565,864 |
| Special reserves | 10,908,497 | 11,102,921 |
| Surplus reserve | 946,251,286 | 946,251,286 |
| Undistributed profits | 4,970,879,129 | 4,859,600,841 |
| Total owner's equity attributable to the parent company | 9,608,165,285 | 9,495,588,878 |
| Minority shareholders' equity | 370,977,121 | 370,266,650 |
| Total owner's equity | 9,979,142,406 | 9,865,855,528 |
| Total Liabilities and Owner's Equity | 20,247,986,997 | 18,201,235,959 |
Legal Representative：Chen LinResponsible person in charge of the accounting: Wang JianPrincipal of the financial department: Wang Wenxin
2. Balance Sheet of the Parent Company
Unit: RMB
| Item | Ending balance | Beginning balance |
| Current asset: | ||
| Monetary Fund | 3,441,903,352 | 1,560,798,731 |
| Prepayments | 1,580,018 | 1,799,222 |
| Other receivables | 3,568,793,050 | 3,179,500,967 |
| Other current assets | 102,916 | 300,000,000 |
| Total current assets | 7,012,379,336 | 5,042,098,920 |
| Non-current assets: | ||
| Long-term receivables | 1,200,000,000 | 1,200,000,000 |
| Long-term equity investment | 5,160,865,574 | 5,079,465,574 |
| Fixed assets | 18,235,043 | 19,550,442 |
| Intangible assets | 274,696 | 370,484 |
| Other non-current assets | 12,036,106 | 1,407,535 |
| Total non-current assets | 6,391,411,419 | 6,300,794,035 |
| Total assets | 13,403,790,755 | 11,342,892,955 |
| Current liabilities: | ||
| Short-term loan | 1,713,000,000 | 1,687,000,000 |
| Notes payable | 20,000,000 | 170,000,000 |
| Payables | 236,346 | 236,346 |
| Payroll payable | 6,796,262 | 53,040,982 |
| Taxes payable | 150,096 | 2,901,358 |
| Other payables | 1,747,238,244 | 1,643,156,452 |
| Incl.: Interest payable | 58,978,240 | 41,186,139 |
| Dividend payable | 2,985,563 | 2,985,563 |
| Non-current liabilities due within one year | 1,200,000,000 | 1,200,000,000 |
| Total current liabilities | 4,687,420,948 | 4,756,335,138 |
| Non-current liabilities: | ||
| Long term loan | 1,300,000,000 | 1,130,000,000 |
| Bonds payable | 1,991,303,521 | |
| Deferred income | 181,782,265 | 182,386,537 |
| Total non-current liabilities | 3,473,085,786 | 1,312,386,537 |
| Total Liabilities | 8,160,506,734 | 6,068,721,675 |
| Owners' equity: | ||
| Share capital | 3,106,915,005 | 3,106,915,005 |
| Capital reserve | 828,046,672 | 828,046,672 |
| Less: treasury shares | 118,066,397 | 118,066,397 |
| Surplus reserve | 960,796,646 | 960,796,646 |
| Undistributed profits | 465,592,095 | 496,479,354 |
| Total owner's equity | 5,243,284,021 | 5,274,171,280 |
| Total Liabilities and Owner's Equity | 13,403,790,755 | 11,342,892,955 |
3. Consolidated Income Statement
Unit: RMB
| Item | Balance of this period | Balance of last period |
| I. Totaloperating revenue | 1,733,965,637 | 2,222,721,514 |
| Incl. :Business income | 1,733,965,637 | 2,222,721,514 |
| II. Total business cost | 1,598,409,180 | 2,105,465,980 |
| Incl. :Business cost | 1,223,133,015 | 1,710,257,358 |
| Taxes and surcharges | 21,811,789 | 26,974,283 |
| Sales expense | 68,190,292 | 82,460,250 |
| Management costs | 154,294,998 | 123,978,598 |
| Research and development expenses | 72,997,585 | 79,671,948 |
| Financial expenses | 57,981,501 | 82,123,543 |
| Incl. : Interest expense | 67,258,381 | 87,627,795 |
| Interest income | 11,556,400 | 6,719,497 |
| Plus: Other income | 20,792,152 | 47,460,637 |
| Credit impairment loss (“-“ for loss) | -3,756,132 | -6,824,404 |
| Asset disposal income(“-“ for loss) | -494,285 | 6,877,195 |
| III. Operational profit (“-“ for loss) | 152,098,192 | 164,768,962 |
| Plus: non-operational income | 585,906 | 687,874 |
| Less: non-operationalexpenses | 17,217,192 | 1,424,258 |
| IV. Gross profit (“-“ for loss) | 135,466,906 | 164,032,578 |
| Less: Income tax expenses | 23,478,147 | 28,094,174 |
| V. Net profit (“-“ for net loss) | 111,988,759 | 135,938,404 |
| (I) Classification by business continuity | ||
| 1. Net profit from continuous operation(“-“ for net | 111,988,759 | 135,938,404 |
| loss) | ||
| 2. Discontinued operating net profit(“-“ for net loss) | ||
| (II) Classification by ownership | ||
| 1. Net profit attributable to the owners of parent company | 111,278,288 | 132,188,324 |
| 2. Minor shareholders’ equity | 710,471 | 3,750,080 |
| VI. Net after-tax amount of other comprehensive income | 1,492,543 | -1,221,913 |
| Net after-tax amount of other comprehensive income attributable to the owner of the parent company | 1,492,543 | -1,221,913 |
| Other comprehensive income that will be reclassified into profit or loss | 1,492,543 | -1,221,913 |
| Foreign-currency financial statement translation difference | 1,492,543 | -1,221,913 |
| VII.Total comprehensive income | 113,481,302 | 134,716,491 |
| Total comprehensive income attributable to owners of the Company | 112,770,831 | 130,966,411 |
| Total comprehensive income attributable to minority shareholders | 710,471 | 3,750,080 |
| VIII. Earnings per share | ||
| (I) Basic earnings per share | 0.04 | 0.04 |
| (II) Diluted earnings per share | 0.04 | 0.04 |
Legal Representative：Chen LinResponsible person in charge of the accounting: Wang Jian Principal of the financial department:
Wang Wenxin
4. Income Statement of the Parent Company
Unit: RMB
| Item | Balance of this period | Balance of last period |
| I. Operating revenue | 19,233,446 | 20,108,542 |
| Less: Business cost | ||
| Taxes and surcharges | 20,006 | 220,610 |
| Sales expense | ||
| Management costs | 19,879,935 | 22,307,483 |
| Research and development expenses | 4,617 | 8,833 |
| Financial expenses | 29,286,644 | 31,366,290 |
| Incl. : Interest expense | 39,873,739 | 36,970,255 |
| Interest income | 10,724,357 | 5,862,210 |
| Plus: Other income | 735,596 | 678,275 |
| Credit impairment loss (“-“ for loss) | -123,501 | 3,481 |
| II. Operational profit (“-“ for loss) | -29,345,661 | -33,112,918 |
| Plus: non-operational income | 76,152 | |
| Less: non-operational expenses | 1,617,750 | |
| III.. Gross profit (“-“ for loss) | -30,887,259 | -33,112,918 |
| Less: Income tax expenses | ||
| IV. Net profit (“-“ for net loss) | -30,887,259 | -33,112,918 |
| (I) Net profit from continuous operation(“-“ for net loss) | -30,887,259 | -33,112,918 |
| (II) Discontinued operating net profit(“-“ for net loss) | ||
| V. Total comprehensive income | -30,887,259 | -33,112,918 |
| VI. 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 | 1,783,332,428 | 2,268,333,166 |
| Refunds of taxes | 1,032,626 | 1,825,553 |
| Received other cash related to business activities | 34,722,910 | 26,891,640 |
| Subtotal of cash inflow from operating activities | 1,819,087,964 | 2,297,050,359 |
| Cash paid for the purchase of goods and services | 1,145,407,582 | 1,445,370,845 |
| Cash paid to and for employees | 424,877,941 | 418,315,107 |
| Payments of all types of taxes | 133,051,857 | 138,793,875 |
| Payment of other cash related to business activities | 126,877,352 | 158,253,170 |
| Subtotal of cash outflow from operating activities | 1,830,214,732 | 2,160,732,997 |
| Net cash flow from operating activities | -11,126,768 | 136,317,362 |
| II. Cash flows from investing activities: | ||
| Net cash recovered from disposal of fixed assets, intangible assets and other long-term assets | 520,508 | 334,400 |
| Other cash received relating to investing activities | 321,068,423 | 209,085 |
| Subtotal of cash inflows from investment activities | 321,588,931 | 543,485 |
| Cash paid for the purchase and construction of fixed assets, intangible assets and other long-term assets | 246,551,903 | 127,234,513 |
| Other cash paid relating to investing activities | 15,432,851 | 606,824 |
| Subtotal of cash outflows from investment activities | 261,984,754 | 127,841,337 |
| Net cash flows from investing activities | 59,604,177 | -127,297,852 |
| III.Cash flow from financing activities: | ||
| Cash received from the loan | 1,114,359,186 | 835,500,000 |
| Cash received from the issuance of bonds | 2,000,000,000 | |
| Other financing-related cash received | 904,849 | 500,000,000 |
| Subtotal of cash inflows from financing activities | 3,115,264,035 | 1,335,500,000 |
| Cash paid for debt repayment | 917,657,084 | 930,211,970 |
| Cash paid for dividends, profits or interest payments | 40,226,280 | 62,397,350 |
| Payment of other cash related to financing activities | 197,505,852 | 359,331,565 |
| Subtotal of cash outflows from financing activities | 1,155,389,216 | 1,351,940,885 |
| Net cash flow from financing activities | 1,959,874,819 | -16,440,885 |
| IV. Influence of exchange rate alternation on cash and cash equivalents | 759,216 | -1,620,779 |
| V.Net increase in cash and cash equivalents | 2,009,111,444 | -9,042,154 |
| Plus: Balance of cash and cash equivalents at the beginning of term | 1,831,835,030 | 2,225,126,913 |
| VI. Balance of cash and cash equivalents at the end of term | 3,840,946,474 | 2,216,084,759 |
6. Cash Flow Statement of the Parent Company
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 | ||
| Refunds of taxes | 18,321 | |
| Received other cash related to business activities | 17,504,825 | 12,431,042 |
| Subtotal of cash inflow from operating activities | 17,523,146 | 12,431,042 |
| Cash paid for the purchase of goods and services | ||
| Cash paid to and for employees | 65,197,531 | 51,404,986 |
| Payments of all types of taxes | 6,802,435 | 1,047,643 |
| Payment of other cash related to business activities | 5,566,108 | 8,308,180 |
| Subtotal of cash outflow from operating activities | 77,566,074 | 60,760,809 |
| Net cash flow from operating activities | -60,042,928 | -48,329,767 |
| II. Cash flows from investing activities: | ||
| Other cash received relating to investing activities | 300,000,000 | |
| Subtotal of cash inflows from investment activities | 300,000,000 | |
| Cash paid for the purchase and construction of fixed assets, intangible assets and other long-term assets | 9,586,096 | 1,522,855 |
| Cash for investment payments | 81,400,000 | |
| Subtotal of cash outflows from investment activities | 90,986,096 | 1,522,855 |
| Net cash flows from investing activities | 209,013,904 | -1,522,855 |
| III. Cash flow from financing activities: | ||
| Cash received from the loan | 827,549,801 | 700,000,000 |
| Cash received from the issuance of bonds | 2,000,000,000 | |
| Other financing-related cash received | ||
| Subtotal of cash inflows from financing activities | 2,827,549,801 | 700,000,000 |
| Cash paid for debt repayment | 631,999,801 | 650,000,000 |
| Cash paid for dividends, profits or interest payments | 22,458,117 | 22,874,958 |
| Payment of other cash related to financing activities | 290,614,929 | 670,685,645 |
| Subtotal of cash outflows from financing activities | 945,072,847 | 1,343,560,603 |
| Net cash flow from financing activities | 1,882,476,954 | -643,560,603 |
| IV. Influence of exchange rate alternation on cash and cash equivalents | 14,917 | -17,160 |
| V. Net increase in cash and cash equivalents | 2,031,462,847 | -693,430,385 |
| Plus: Balance of cash and cash equivalents at the beginning of term | 1,407,215,863 | 1,699,514,334 |
| VI. Balance of cash and cash equivalents at the end of term | 3,438,678,710 | 1,006,083,949 |
II. Note to the Adjustment of Financial Statements
Since 2020, adjustment of the relevant financial statements at current year beginning according to newstandards for the new standards for revenues and the new standards for lease initially implemented
√Applicable □Not applicable
| Item | 2019-12-31 | 2020-01-01 | adjust data |
| Advance from customers | 292,803,811 | -292,803,811 |
| Contract liability | 292,803,811 | 292,803,811 |
Note: the finance ministry issued Accounting Standard For Business Enterprises no. 14 - revenue in July 2017. In accordance withthe relevant provisions, enterprises that are listed both in domestic and abroad and enterprises that are listed abroad and preparefinancial statements by adopting international financial reporting standards or accounting standards for business enterprises shallcome into force as of January 1, 2018; Other domestic listed enterprises shall take effect as of January 1, 2020.
In accordance with the above provisions, the company shall implement the newly issued revenue criterion from January 1, 2020, andthe payment for the original advance sales contract shall be reported in the "Advance fromcustomers", and the payment shall bereported in the "contract liability" from January 1, 2020.
2. Since 2020, note to the retroactive adjustment of the previous comparative data according to the newstandards for revenues and the new standards for lease initially implemented
□ Applicable √Not applicable
III. Report of the Auditors
Whether the First Quarter Report has been audited or not
□ Yes √ No
The First Quarter Report hasn’t been audited.
Board of Directors ofCSG Holding Co., Ltd.30 April 2020