CSG HOLDING CO., LTD.
SEMI-ANNUAL REPORT 2020
Chairman of the Board:
CHEN LIN
August 2020
Section I. Important Notice, Content and ParaphraseBoard 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. Wang Jian, responsible person in charge of accountingand Ms.Wang Wenxin, principal of the financial department (accounting officer) confirm that theFinancial Report enclosed in the semi-annual report of the Company is true, accurate and complete.All directors were present at the meeting of the Board for deliberating the semi-annual report of theCompany in person.The future plans, development strategies and other forward-looking statements mentioned in thisreport do not constitute a material commitment of the Company to investors. Investors and relevantparties should pay attention to investment risks, and understand the differences between plans,forecasts and commitments.The Company has described the risk factors and countermeasures of the Company's futuredevelopment in detail in this report. Please refer to Section IV. Business Discussion and Analysis.The Company shall comply with the disclosure requirements of "Shenzhen Stock ExchangeIndustry Information Disclosure Guidelines No. 13 - Listed Companies Engaged in Non-MetalBuilding Materials Related Business".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. Business Discussion and Analysis ................................................................................... 11
Section V. Important Events ............................................................................................................... 26
Section VI. Changes in Shares and Particulars about Shareholders .................................................. 43
Section VII. Particulars about Directors, Supervisors, Senior Executives and Employees ............... 49
Section VIII.Corporate Bonds ............................................................................................................ 51
Section IX. Financial Report .............................................................................................................. 56
Section X. Documents available for Reference ............................................................................... 148
Paraphrase
| Item | Refers to | Content |
| Company, the Company, CSG or the Group | Refers to | CSG Holding Co., Ltd. |
| Foresea Life | Refers to | Foresea Life Insurance Co., Ltd. |
| Ultra-thin electronic glass | Refers to | The electronic glass with thickness between 0.1~1.1mm |
| Second-generation energy-saving glass | Refers to | Double silver coated glass |
| Third-generation energy-saving glass | Refers to | Triple silver coated glass |
| AG glass | Refers to | Anti-glare glass |
| AF glass | Refers to | Anti-fingerprint glass |
Section II. Company Profile & Financial HighlightsI. 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 | Representative of securities affairs | |
| Name | Yang Xinyu | Chen Chunyan |
| Contact address | CSG Building, No.1 of the 6th Industrial Road, Shekou, Shenzhen, P. R.C. | CSG Building, No.1 of the 6th Industrial Road, Shekou, Shenzhen, P. R.C. |
| Tel. | (86)755-26860666 | (86)755-26860666 |
| Fax. | (86)755-26860685 | (86)755-26860685 |
| securities@csgholding.com | securities@csgholding.com |
III. 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 2019.
2. Information disclosure and preparation place
Whether information disclosure and preparation place changed in the report period or not
□Applicable √ Not applicable
The newspapers designated by the Company for information disclosure, the website designated by CSRC for disclosing semi-annualreport and preparation place of semi-annual report did not change in the report period. More details can be found in Annual Report
2019.
3. Other relevant information
Whether other relevant information changed in the report period or not
□Applicable √ Not applicable
IV. Main accounting data and financial indexesWhether 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.2020) | The same period of last year | Increase/decrease year-on-year | |
| Operating income (RMB) | 4,424,221,349 | 4,888,237,578 | -9.49% |
| Net profit attributable to shareholders of the listed company (RMB) | 391,466,723 | 377,342,401 | 3.74% |
| Net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses (RMB) | 358,644,297 | 283,939,444 | 26.31% |
| Net cash flow arising from operating activities (RMB) | 779,644,389 | 767,982,465 | 1.52% |
| Basic earnings per share (RMB/Share) | 0.13 | 0.12 | 8.33% |
| Diluted earnings per share (RMB/Share) | 0.13 | 0.12 | 8.33% |
| Weighted average ROE | 4.08% | 4.09% | -0.01% |
| End of this period | End of last year | Increase/decrease in this period-end over that of last year-end | |
| Total assets (RMB) | 19,364,312,707 | 18,201,235,959 | 6.39% |
| Net assets attributable to shareholders of the listed company (RMB) | 9,671,644,531 | 9,495,588,878 | 1.85% |
The total share capital of the company as of the previous trading day of disclosure：
| The total share capital of the company as of the previous trading day of disclosure (share) | 3,070,692,107 |
| Fully diluted earnings per share calculated with latest equity (RMB/share) | 0.13 |
V. Difference of accounting data under domestic and overseasaccounting 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 underoverseas andChinese accounting standards
□ Applicable √ Not applicable
No such differences in the report period.
3. Explanation of the difference of accounting data under domestic and overseas accounting standards
□ Applicable √ Not applicable
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) | -342,005 | |
| 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) | 48,109,326 | |
| Loss and profit from external entrusted loan | 5,546,384 | |
| Other non-operating income and expenditure except for the aforementioned items | -15,417,422 | |
| Less: Impact on income tax | 4,330,999 | |
| Impact on minority shareholders’ equity (post-tax) | 742,858 | |
| Total | 32,822,426 | -- |
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 inthe report period.
Section III. Overview of the Company’s BusinessI. Main business of the Company in the report periodCSG is a leading domestic brand of energy-saving glass 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 highquality floatglass and architectural glass, solar glass, silicon material, renewable energy products such as PV celland modules, and new materialsand information display products such as ultra-thin electronic glass and display devices. It also provides one-stop services such asproject development, construction, operation and maintenance of solar photovoltaic power plants.
Flat glass industryCSG now has 10 float glass production lines representing the most advanced technology, 2 solar glass production lines and 12 solarglass deep processing production lines in Dongguan, Chengdu, Langfang, Wujiang, Xianning, and also has quartz sand raw materialprocessing and production bases in Jiangyou, SichuanProvince and Qingyuan, Guangdong Province. The annual output of varioushigh-grade float glass wasabout 2.47 million tons and the annual output of solar glass was 0.43 million tons. The float glass productscover high-grade float glass and ultra-clear float glass with various thicknesses from 1.3mm to 25mm, and the performance of theproducts all reach the leading level in China. Solar glass has a capacity of 60 million square metresper year of deep processing, theproducts of which cover a variety of thickness of 2-4mm deep processing products.The flat glass of CSG are widely used in high-end architectural curtain walls, decoration and furniture, reflective mirror, automotivewindshield, scanner and photocopier transparent panel, home appliance panel, display devices protection and solar energy field.TheCompany’sProducts are sold all over the world, and it has established long-term, stable business cooperation with many well-knownprocessing enterprises.The Company always adheres to the operation principleof innovation, transformation and upgrading, and further enhances theprofitability of flat glass industry by the implementation of differentiated competitive strategy. In 2020, the subsidiary XianningCSGGlass Co., Ltd. switched to the production of tinted float glass, further expanding the float glass product series of CSG and increasingthe proportion of differentiated product sales.Through speeding up technology upgradeand reform for solar glass, the productivity of
1.6-2.5mm ultra-thin solar glass for double-glass PV module was further improved and the processing capacity of PV glazedbackpanel glass was increased. By focusing on developing overseas market, the overseas sales business stabilized. The exploration ofhigh value-added markets such as tinted float glass, PV glazed backpanel glass as well as the expansion of overseas market whichfurther enhanced the market competitiveness of CSG's flat glass.
Architectural glass industry
CSG Group is one of the largest suppliers of high-grade engineering and architectural glass in China.It has built five energy-savingglass processing bases in Tianjin, Dongguan, Xianning, Wujiang and Chengdu. Now it is preparing to build Zhaoqing energy-savingglass processing base to meet the growing demand of high-grade energy-saving glass. The Company has the world's leading glassdeep processing equipment and testing equipment, and its products cover all kinds of engineering and architectural glass. TheCompany's R&D and application of glass coating technology keep space with the world and its technology of high-end product evenleads the world. Following the second generation of energy-saving glass products, the Company has successively developed the thirdgeneration and multi-functional energy-saving glass products with continuous improving energy-saving and heat-preservation effect.The domestic high-end market share of high-quality energy-saving and environment-friendly LOW-E insulating glass by far exceedsthat of competitors.At present, the Company’s coated insulating glass and coated glass have reached annual capacity of morethan16.00 million square meters and 36.00 million square meters respectively.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 has an advantage in the international tendering and bidding. Since 1988, CSG's engineers and technicians have beencontinuously participating in the formulation and compilation of various national standards and industry standards. Varioushigh-quality architectural glass of the Company has been used in many landmark buildings at home and abroad, such asBeijingCapital International Airport, CCTV, Shanghai Oriental Fisherman’s Wharf, China Resources Headquarters Building, ShenzhenKingKey100 Building, Hong Kong-Zhuhai- Macao Bridge Zhuhai Port, Ping An International Finance Centre, National ConventionCenter, Beijing Subsidiary Administrative Center, Beijing Daxing International Airport, Hangzhou Hampton and other more than tenHilton Hotels, Hong Kong Four Seasons Hotel, Melbourne Airport, Midtown, International Centre of Abu Dhabi, New Capital CBDof Egypt, Korea LCT and Metropolis Phase 2B.Electronic glass and display industryIn 2020, the Company's electronic glass business continued to develop. Its four subsidiaries, Hebei Panel, Yichang Photoelectric,Qingyuan New Energy-Saving Materials and Xianning Photoelectric continued to actively implement product upgrading and marketupgrading in the application fields of intelligent electronic terminals, touch components, vehicle mounted display, industrial controland commercial display, military security and smart home, so that the market share and brand effect of the Company's medium andhigh aluminum electronic glass products could improve greatly. Rich product structure, reliable delivery guarantee and strongtechnical innovation help the Company’s electronic glass business maintain its dominant positionin the fierce market competition. In2020, the subsidiary company Xianning CSG Photoelectric Glass Co., Ltd. realized batch sales of second-generation high aluminumelectronic glass, and some performance indicators of the products have reached the international advanced level, which can meet thehigher standard requirements of downstream end customers for basic materials in 3D curved surface technology, 5G communicationsolutions and other fields. The successful development of the product marks the promotion of the competitiveness of CSG’selectronic glassbusiness in the high-end application market. Based on the current products, the Company has laid out the research anddevelopment of the next generation electronic glass products, which will further enhance the competitive advantages of electronicglass products in the future.CSG has long been committed to becoming the industry's leading electronic glass material solution provider, and it will continue todevelop glass-based protective materials with higher strength and competitiveness in the field of touch display, develophuman-computer interaction interface materials meeting the requirements of material interconnection in the fields of smart home,vehicle display and advanced medical, and develop revolutionary alternative materials in the fields of transportation and security.CSG has been engaged in the field of touch display since 2000. After 20 years of development and accumulation, the Company hastwo core technologies which are multi-layer complex film vacuum coating and precision yellow light pattern processing, and its mainbusiness includes ITO conductive glass, ITO conductive film, touch sensor and module. Among them, ITO conductive glass and ITOconductive film, as the traditional business of the Company, are positioned at the middle and high-end customers at home and abroad.The main products include high and medium grade ITO conductive glass, high and medium grade ITO conductive film, ITO copperfilm, etc. With differentiated product innovation ideas and continuous cost reduction and efficiency measures, the Company hasoccupied the middle and high-end market and maintained the leading position in the industry for a long time. In the touch sensor andmodule business segment, the Company continued to increase the investment layout in the automotive electronics field, andestablished the IATF16949 quality management system supporting the automotive industry. The products are positioned in thevehicle front loading market, and the end customers include German series, Japanese series, European and American series and manymiddle and high-end brand car factories in China. At present, its main business covers core products such as vehicle multi-functionalcomposite cover plate, vehicle glass sensor, vehicle touch module, etc, which are widely used in the automotive intelligent electronicfields such as car central control panel, car rearview mirror, automobile entertainment system, etc.With years of development, CSG has become a brand supplier of electronic application materials in the display touch industry,providing customers with all-round one-stop touch screen material solutions. In the future, the Company will continue to optimize thelayout in the vehicle field, further build the high-end manufacturing industry chain of vehicle touch display, and become a
high-quality component supplier in the field of automotive electronics.Solar Energy and other industriesCSG has entered solar photovoltaic industry since 2005 and is one of enterprises which firstly enter the field in China. After morethan ten years of construction, operation and technological upgrading, CSG has built an industry chain in the field, covering high-purity polysilicon materials, high-efficiency silicon wafer, silicon solar cell and modules, and the operation of solar photovoltaicpower plants, by which the Company ensures the stable quality and best cost-efficiency of its PV products to customers.The Company now produces 9,000 ton per year of high purity polysilicon, 2.2 GW per year of silicon wafer, 1GW per year of solarcell, 0.4GW per year of modules and photovoltaic power station of 130MW. Under the policy background of domestic subsidiesdeclining, in response to the continuous decline of polysilicon market price, the Company took the initiative to suspend production ofpolysilicon for technological upgrading, so as to promote industrial upgrading by technological upgrading. In order to meet theincreasing quality requirements of the silicon wafer market, the Company has continued to invest in the research and development ofpolycrystalline ingot technology, so that the quality of silicon wafers has maintained the advanced level in the industry for a longtime. At the same time, in order to meet the market demand for high-power photovoltaic modules, the Company completed the PERCcellmodule technology upgrade project.In order to respond to the epidemic and fulfill its social responsibility, during the critical period of the epidemic, the Companyinvested and established Shenzhen CSG Medical Technology Co., Ltd., which produced masks, and took the initiative to undertakethe production task of materials reserved by Shenzhen Government for epidemic prevention and control. At the same time, theCompany made use of the existing cell workshop purification workshop and PV cell beat-type production and environmentalpurification production experience of Dongguan PV-tech Co., Ltd. to produce anti-epidemic materials such as masks to meet theurgent market demand for protective materials and achieved good social and economic benefits.II. Major changes in main assets
1. Details of major changes in main assets
| Main assets | Note of major changes |
| Equity assets | No significant changes in equity assets during the reportperiod |
| Fixed assets | Due to the transfer of fixed assets into the technical transformation of projects under construction during the report period |
| Intangible assets | No significant changes inintangible assets during the reportperiod |
| Construction in progress | Due to the transfer of fixed assets into the technical transformation of projects under construction during the report period |
| Short-term borrowings | Repayment of part of the loan during the reportperiod |
| Long-term borrowings | Due to the reclassification of medium-term notes to non current liabilities due within one year |
| Bonds payable | Due to the new issuance of corporate bonds during the reportperiod |
2. Main overseas assets
□ Applicable √ Not applicable
III. Core Competitiveness Analysis
1. The Company currently has built complete industrial chains in theinvolved industries, which has complementary advantage. Forexample, in glass industry, the Company has set up the industry chain as quartz sand → high quality float glass → architecturalenergy-saving glass. With continuous the improvement of technology in the chains, the industrial advantages emerged.
2. The Company possesses a complete industry layout. At present, the Company has established large production bases in East China,West China, South China, North China and Central China, which enables the Company to be closer to the market and serve themarket better.
3. The Company has capability of technology innovation and product innovation. It owns independent intellectual property rights ofhigh-end float glass production process. The technology level of ultra-thin electronic glass is in the leading position in China. TheCompany also keeps its R&D and production of energy-saving glass in line with the world’s advanced level.
4. The Company possesses high anti-risk capability. It has established an effective internal control system. Meanwhile, themanagement and control ability of account receivable and inventory stand in a high level within the industry.
5. The Company adheres to the principle of making glass industry, its core business, bigger and stronger by polishing "Three Piecesof Glass" (float glass, PV glass, electronic glass), building a brand (engineering glass), taking advantage of its leading superiority inthe business in terms of brand, technology and management, improving the industrial scale through horizontal integration andvertical industrial chain extension, exporting its technology and management to improve the quality of the industry, turning theadvantages of CSG's technology and management into the advantages of market share and benefit contribution,and improving thestatus as a leading enterprise in the industry. In March 2020, the Company signed an investment agreement with Fengyang CountyGovernment of Anhui Province to build a manufacturing base of lightweight & high-permeability panel for solar energy equipment.At the same time, it applied for non-public issuance of A shares to raise construction funds, and soon obtained the approval of CSRC.At present, the issuance work is actively promoted, which will lay a solid foundation for the Company's future strategic development.
Section IV. Business Discussion and Analysis
I. OverviewAt the beginning of 2020, a sudden outbreak of COVID-19 brought about a stern test to the national economy.After the outbreak of the epidemic, the Company resolutely implemented the strategic deployment of the CPC Central Committee, tostart the "war time" command system, and to lay out epidemic prevention and control measures. CSG and its subsidiaries firmlyimplemented the requirements of the governments at all levels, and in accordance with the instructions of "Unswervinglyemphasizing epidemic prevention and going all out to secure production", on one hand, the Company strictly controlled the epidemicprevention, and on the other hand, it paid close attention to safe resumption of work and production. The Company has 6 subsidiariesin Hubei Province, the region that was seriously affected by the epidemic, and the production and operation of those subsidiarieswere affected to a certain extent for their production, sales and logistics were greatly affected by the epidemic. In order to fulfill thesocial responsibility of a listed company and meet the urgent demand for protective materials during the epidemic period, theCompany actively responded to the call of the state and the government to switch to the production of masks and disinfectionproducts (84 disinfectant), by making use of over 30 years experience in manufacturing technology, production and management andits own advantages in production capacity and resources, as well as overcoming the difficulties of insufficient equipment, staff andraw materials during the epidemic period, and actively undertook the production task of the materials which Shenzhen governmentreserved up for epidemic prevention and control. During the epidemic period, the Company actively allocated and donated aboutRMB 15 million of funds and materials for epidemic prevention and control to the places where the headquarter and its subsidiarieslocated, which suffered a lot from the epidemic such as Hubei and Guangdong etc., and donated 10 million self-made masks toShenzhen government, to support the local governments in fighting against the epidemic. As the Company was fully prepared forepidemic response, it timely firmed up the differentiated operation strategy according to market changes, adjusted the operationdirection, and continued to reduce cost and increase efficiency. Although the operating income has decreased year on year, the netprofit achieved a positive growth. In the first half year of 2020, the Company achieved operating income of RMB 4,424 million witha year-on-year decrease of 9.49%, net profit of RMB 402 million, with a year-on-year increase of 3.91%, and net profit attributable tothe parent company of RMB 391 million, with a year-on-year increase of 3.74%; within which achieved a year-on-year increase of
26.31% after deducting non-recurring gains and losses.
According to the development trend of the industry and its own advantages and characteristics, the Company further clarified itsdevelopment strategy, putting forward the strategy that it adheres to the principle of making glass industry, its core business, biggerand stronger by polishing "Three Pieces of Glass" (float glass, PV glass, electronic glass), building a brand (engineering glass),taking advantage of its leading superiority in the business in terms of brand, technology and management, improving the industrialscale through horizontal integration and vertical industrial chain extension, exporting its technology and management to improve thequality of the industry, turning the advantages of CSG's technology and management into the advantages of market share and benefitcontribution, and improving the status as a leading enterprise in the industry. During the epidemic period, the Company signed aninvestment agreement with Fengyang County Government of Anhui Province to build a manufacturing base of lightweight &high-permeability panel for solar energy equipment. At the same time, it applied for non-public issuance of A shares to raiseconstruction funds, and soon obtained the approval of CSRC. At present, the issuance work is actively promoted, which will lay asolid foundation for the Company's future strategic development.Glass industry:
In the face of adverse effects brought to the glass industry and the upstream and downstream enterprises by the outbreak ofCOVID-19, the Company responded positively by adopting effective measures, and the net profit of its glass industry bucked the
trend and got increased. In the first half year of 2020, the glass industry achieved operating income of RMB 3,592 million ayear-on-year decrease of 2.14% and net profit of RMB 450 million, with a year-on-year increase of 26.90%. The detail is as follows:
Flat glass: Affected by the epidemic, the price and sales volume of float glass fluctuated on a year-on-year base. In response to theperiodic adjustment of the market, the Company took effective measures including reducing costs through centralized procurementand development of new suppliers, increasing the proportion of differentiated products and high value-added products to enhanceprofitability, and achieved positive growth of net profit under the impact of the epidemic. The solar glass achieved a significantincrease in net profit year-on-year through actively seizing export orders and increasing the strategy of double-glass products duringthe epidemic period, which contributed significantly to the overall performance of the Group.Architectural glass: The overseas market of architectural glass was fairly good in the first quarter, but affected by the epidemic, theresumption of work was delayed compared with that in previous years, and the logistics was also greatly affected. By going all out toresume production in the second quarter, the overall business performance in the first half of the year was better than expected.Through the continuous implementation of differentiated product development and promotion, equipment automation andinformatization, cost reduction and efficiency improvement and cost assessment, the architectural glass kept stable business operation.Under the impact of the epidemic, it showed a strong operational ability in the face of severe market.Electronic glass and display industry:
The Company has 5 manufacturing subsidiaries in the electronic glass and display industry, of which 3 are located in Hubei Province.The resumption of work was delayed in the first quarter and production, sales, logistics and other aspects were greatly affected by theepidemic, but gradually returned to normal in the second quarter. In order to continuously expand the high-end market of electronicglass and produce higher generation products, the Company took the initiative to suspend production of Qingyuan phase I fortechnical transformation at the end of April this year. Therefore, the production and sales volume of the industry decreasedyear-on-year. In the first half year of 2020, the electronic glass and display industry achieved operating income of RMB 405 millionwith a year-on-year decrease of 20.56%, and net profit of RMB 54 million, with a year-on-year decrease of 48.56%.The Company firmly followed the development route of product upgrade and acceleration of import substitution. After conqueringthe technology of the new generation of high aluminum electronic glass, Xianning Photoelectric successfully achieved massproduction of the second generation high aluminum glass in the first half of 2020, and the excellent performance of the product canmeet the downstream terminal customers' higher standard requirements for basic materials in the fields of 3D curved surfacetechnology and 5G communication solutions, the technological level of which can be comparable with foreign advanced level. Atpresent, the product has been introduced to domestic well-known mobile phone enterprises, and its market promotion is in smoothprogress. At the same time, the construction of one kiln and two lines for electronic glass in Qingyuan phase II project is beingaccelerated, and it is expected to ignite at the end of September this year. Although affected by the epidemic and production lineupgrading in a short time, with the construction of new production lines, the application of new technologies, the gradual increase ofthe proportion of high-end products, and the acceleration of import substitution process, the future development of electronic glassand display industry will continue to be better.Solar Energy and other industries:
Silicon material base of solar energy industry located in Hubei Province, was seriously affected by the epidemic. Apart from stoppingproduction of polysilicon for technological upgrading, silicon wafer was out of production before April, and gradually resumedproduction after April. As the overseas PV market was also affected by the epidemic, the delivery speed of PV products slowed down,but the production and sales gradually recovered in the second half of the second quarter and the market gradually improved.In order to respond to the epidemic and fulfill its social responsibility, the Company invested and established Shenzhen CSG MedicalTechnology Co., Ltd. during the critical period of the epidemic, which produced masks, and took the initiative to undertake theproduction task of the materials which Shenzhen government reserved up for epidemic prevention and control At the same time, itmade use of the existing cell workshop purification workshop and PV cell beat-type production and environmental purification
production experience of Dongguan PV-tech Co., Ltd. to produce anti-epidemic materials such as masks to meet the urgent marketdemand for protective materials, and donated more than 10 million self-made masks to Shenzhen and other places, which achievedgood social and economic benefits.With the joint efforts of the Group, its solar energy and other businesses achieved operatingincome of RMB 479 million and net profit of RMB 1 million in the first half of 2020 under the influence of the epidemic.
II. Main business analysis
1. Overview
Whether it is the same as the ―Overview‖ disclosed in ―Business Discussion and Analysis‖
√Yes □ No
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 | 4,424,221,349 | 4,888,237,578 | -9.49% | |
| Operating costs | 3,159,567,031 | 3,671,376,825 | -13.94% | |
| Sales expenses | 161,639,534 | 172,503,399 | -6.30% | |
| Administration expenses | 317,419,407 | 292,862,355 | 8.39% | |
| Financial expenses | 131,743,197 | 159,066,859 | -17.18% | Mainly due to the decrease of interest expenses |
| Income tax expenses | 84,115,208 | 76,458,740 | 10.01% | |
| Impairment of assets | -154,053 | 3,765,670 | -104.09% | Mainly due to the reclassification of receivables impairment to credit impairment loss |
| R&D investment | 145,063,647 | 174,276,136 | -16.76% | |
| Income from asset disposal | -342,005 | 370,969 | -192.19% | Mainly due to the disposal of assets |
| Other income | 48,009,326 | 107,755,413 | -55.45% | Mainly due to the decrease of government subsidy amortization |
| Non-operating income | 2,218,131 | 3,666,315 | -39.5% | Mainly due to the decrease of claim income |
| Non-operating expenses | 17,535,553 | 6,293,227 | 178.64% | Mainly due to the increase in donation expenditure |
| Net cash flow arising from operating activities | 779,644,389 | 767,982,465 | 1.52% | |
| Net cash flow arising from investment activities | -129,222,465 | -291,273,292 | - | |
| Net cash flow arising from financing activities | 588,811,534 | -957,535,892 | - | Mainly due to the increase in cash received from bond issuance |
Major changes on profit composition or profit resources in the report period
□Applicable √Not applicable
2. Revenue and cost
(1) Composition of main business
Unit: RMB
| The report period | The corresponding period of last year | Increase/decrease y-o-y | |||
| Amount | Ratio in operation revenue | Amount | Ratio in operation revenue | ||
| Total of operating income | 4,424,221,349 | 100% | 4,888,237,578 | 100% | -9.49% |
| According to industry | |||||
| Glass industry | 3,591,815,295 | 81.18% | 3,670,350,480 | 75.08% | -2.14% |
| Electronic glass & Display industry | 404,864,974 | 9.15% | 509,666,927 | 10.43% | -20.56% |
| Solar energy and other industries | 478,795,753 | 10.82% | 775,141,104 | 15.86% | -38.23% |
| Others | 37,835,287 | 0.86% | 38,156,685 | 0.78% | -0.84% |
| Amount of unutilized | -89,089,960 | -2.01% | -105,077,618 | -2.15% | -15.22% |
| According to product | |||||
| Glass products | 3,591,815,295 | 81.18% | 3,670,350,480 | 75.08% | -2.14% |
| Electronic glass & Display products | 404,864,974 | 9.15% | 509,666,927 | 10.43% | -20.56% |
| Solar energy and other products | 478,795,753 | 10.82% | 775,141,104 | 15.86% | -38.23% |
| Others | 37,835,287 | 0.86% | 38,156,685 | 0.78% | -0.84% |
| Amount of unutilized | -89,089,960 | -2.01% | -105,077,618 | -2.15% | -15.22% |
| According to region | |||||
| Mainland China | 3,862,784,501 | 87.31% | 4,155,252,155 | 85.01% | -7.04% |
| Overseas | 561,436,848 | 12.69% | 732,985,423 | 14.99% | -23.4% |
(2) List of the industries, products or regions exceed 10% of the operating income or operating profits of the Company
√Applicable □ Not applicable
Unit: RMB
| Operating revenue | Operating cost | Gross profit ratio | Increase/decrease of operating revenue y-o-y | Increase/decrease of operating cost y-o-y | Increase/decrease of gross profit ratio y-o-y | |
| According to industry | ||||||
| Glass industry | 3,591,815,295 | 2,587,028,396 | 27.97% | -2.14% | -5.34% | 2.43% |
| Electronic glass & Display industry | 404,864,974 | 264,638,784 | 34.64% | -20.56% | -28.01% | 6.77% |
| Solar energy and other industries | 478,795,753 | 364,876,894 | 23.79% | -38.23% | -42.89% | 6.21% |
| According to product | ||||||
| Glass products | 3,591,815,295 | 2,587,028,396 | 27.97% | -2.14% | -5.34% | 2.43% |
| Electronic glass & Display products | 404,864,974 | 264,638,784 | 34.64% | -20.56% | -28.01% | 6.77% |
| Solar energy and other products | 478,795,753 | 364,876,894 | 23.79% | -38.23% | -42.89% | 6.21% |
| According to region | ||||||
| Mainland China | 3,862,784,501 | 2,759,733,854 | 28.56% | -7.04% | -11.63% | 3.72% |
| Overseas | 561,436,848 | 399,833,177 | 28.78% | -23.4% | -27.07% | 3.58% |
III. Non - core business analysis
√Applicable □ Not applicable
Unit: RMB
| Amount | Percentage to total profits | Explanation of the reason | Whether sustainable or not | |
| Other income | 48,009,326 | 9.88% | Mainly due to government subsidiesetc. | No |
| Impairment of assets | -154,053 | -0.03% | Mainly due to the reverse of the decline in the value of inventories | No |
| Non-operating income | 2,218,131 | 0.46% | Mainly due to claim income and payment that cannot be paid | No |
| Non-operating expenses | 17,535,553 | 3.61% | Mainly due to donation expenditure | No |
| Credit impairment loss | 2,961,920 | 0.61% | Mainly due to the impairment loss of accounts receivableetc. | No |
IV. Assets and liabilities
1. Significant changes in assets composition
Unit: RMB
| End of the report period | End of the corresponding period of last year | Increase or decrease in proportion | Explanation of significant changes | |||
| Amount | Percentage to total assets | Amount | Percentage to total assets | |||
| Monetary funds | 3,074,973,644 | 15.88% | 1,986,980,418 | 10.92% | 4.96% | Mainly due to the increase of monetary funds caused by the new issuance of corporate bonds |
| Notes receivable | 230,044,196 | 1.19% | 297,023,380 | 1.63% | -0.44% | |
| Accounts receivable | 780,968,446 | 4.03% | 649,681,177 | 3.57% | 0.46% | |
| Receivables financing | 303,344,206 | 1.57% | 258,296,826 | 1.42% | 0.15% | |
| Other current assets | 151,162,747 | 0.78% | 447,995,931 | 2.46% | -1.68% | Mainly due to the recovery of entrusted loans |
| Advance payment | 119,645,053 | 0.62% | 78,196,027 | 0.43% | 0.19% | Mainly due to the increase of prepayment for energy and materials |
| Inventory | 1,036,632,734 | 5.35% | 812,321,690 | 4.46% | 0.89% | Mainly due to the increase in inventory |
| Fixed assets | 8,482,459,154 | 43.80% | 9,783,037,301 | 53.75% | -9.95% | Mainly due to the transfer of fixed assets into the technical transformation of construction in progress |
| Construction in progress | 3,116,834,966 | 16.10% | 1,902,140,035 | 10.45% | 5.65% | Mainly due to the transfer of fixed assets into the technical transformation of construction in progress |
| Short-term borrowings | 1,604,423,055 | 8.29% | 2,240,969,137 | 12.31% | -4.02% | Mainly due to the repayment of some loans |
| Advances from customers | 292,803,811 | 1.61% | -1.61% | Mainly due to the reclassification of advance payments to contract liabilities | ||
| Contract liabilities | 269,082,855 | 1.39% | 1.39% | Mainly due to the reclassification of advance payments to contract liabilities | ||
| Other accounts payable | 270,701,826 | 1.40% | 351,374,775 | 1.93% | -0.53% | Mainly due to the repurchase of restricted stocks |
| Non current liabilities due within one year | 2,092,839,388 | 10.81% | 1,712,456,928 | 9.41% | 1.40% | Mainly due to the reclassification of medium-term notes to non current liabilities due within one year |
| Long-term borrowings | 675,200,269 | 3.49% | 1,320,225,000 | 7.25% | -3.76% | Mainly due to the reclassification of medium-term notes to non current liabilities due within one year |
| Bonds payable | 1,991,652,870 | 10.29% | 10.29% | Mainly due to the new issuance of | ||
| corporate bonds | ||||||
| Long-term accounts payable | 53,006,500 | 0.27% | 87,240,529 | 0.48% | -0.21% | Mainly due to the repayment of financial leasing funds |
| Treasury stock | 118,066,397 | 0.65% | -0.65% | Mainly due to the repurchase of restricted stocks | ||
| Other comprehensive income | 7,932,636 | 0.04% | 6,565,864 | 0.04% | 0.00% | Mainly due to the change of foreign currency statement translation difference |
2. Assets and liabilities at fair value
□Applicable √Not applicable
3. Limited asset rights as of the end of the report period
Unit: RMB
| Item | Closing book value | Limited reason |
| Monetary funds | 3,317,673 | Limited circulation of margin |
| Fixed assets | 478,620,783 | Limited financial leasing and mortgage loan |
| Total | 481,938,456 | -- |
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 |
| 458,013,392 | 327,952,063 | 39.66% |
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 | Date of disclosure (if applicable) | Index of disclosure (if applicable) |
| Anhui Lightweight&high-permeability panelfor solar energy equipment manufacturing base project | Self-built | Yes | Manufacturing industry | 157 | 157 | Own funds and loans from financial institutions | CSG plans to invest in Anhui Province for theprojectof lightweight &high-permeability panelfor solar energy equipment manufacturing base in 2020-2022.The project is still under preparation. | 71,397 | No income as the project is in the construction period. | March 6, 2020 | Notice number: 2020-010 | |
| Fengyang quartz sand project in Anhui Province | Self-built | Yes | Manufacturing industry | 8 | 8 | Own funds and loans from financial institutions | CSG plans to build a new production base of low iron (ultra white) quartz sand with an annual output of 600,000 tons in Fengyang, Anhui Province, and obtain the raw ore right of quartz sand. | 8,238 | No income as the project is in the construction period. | March 6, 2020 | Notice number: 2020-010 | |
| Zhaoqing CSG high-grade automotive glass production line | Self-built | Yes | Manufacturing industry | 382 | 382 | Own funds and loans from financial | The CSG group plans to invest in the construction of high-end automotive glass production line in Zhaoqing from 2019 to 2021. | 5,800 | No income as the project is in the | December 13, 2019 | Notice number: 2019-077 |
| project | institutions | The project is still under construction. | construction period. | |||||||||
| Zhaoqing CSGhigh-grade energy conservation glass production line project | Self-built | Yes | Manufacturing industry | 435 | 435 | Own funds and loans from financial institutions | The CSG Group plans to invest in the construction of energy-saving glass production project in Zhaoqing from 2019 to 2021. After the production, the company will produce 2.5 million square meters of energy-saving insulating glass and 3.5 million square meters of coated energy-saving products. Land smoothing is in progress at present. | 7,000 | No income as the project is in the construction period. | December 13, 2019 | Notice number: 2019-077 | |
| Qingyuan CSG ultra-clear electronic glass and ultra-clear special glass product line construction project | Self-built | Yes | Manufacturing industry | 21,670 | 30,543 | Own funds and loans from financial institutions | The company plans to adopt the advanced design concept of one kiln and two lines, and build a production line of one kiln and two lines (80 + 620T/D) for ultra-white electronics and ultra-white special glass with a daily melting capacity of 700 tons in Qingyuan CSG. The first-line plan is designed according to 80T/D, will produce0.33-1.1mm, considering the production capacity of 2mm, mainly producing electronic display toughened protective glass for mobile phones. The second-line | 16,420 | No income as the project is in the construction period. | Decenber 22, 2018 | Notice number： 2018-072 |
| plan is designed according to 620T/D, with two series of 3-4mm and 15-22mm for differentiated management, and 5-12mm as the transition, mainly producing AG anti-dazzle, "exposure glass" for scanning and copier, TCO for thin film battery, battery front plate and back plate and other ultra-clear special glass. | ||||||||||||
| PV power plant investment | Self-built | Yes | Manufacturing industry | 26,214 | Own funds and loans from financial institutions | CSG plans to construct PV power plants 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. During 2016 to 2018, Shenzhen CSG PV developed and built a total of 78MW of photovoltaic power stations, including 58MW of distributed photovoltaic power plants and 20MW of centralized photovoltaic power plants. | 4,344 | 4,840 | Part of the project has been completed. | January 22, 2016 | Notice number: 2016-006 | |
| Hebei Panel Glass project of medium-alumina ultra-thin | Self-built | Yes | Manufacturing industry | 1,266 | 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～ | The project has no income at present | October 29, 2014 | Notice number: 2014-030 |
| electronic glass | 1.1mm medium-alumina ultra-thin glass with float process. The project was still in preparation. | |||||||||||
| Yichang CSG 700MW crystalline silicon solar cell project | Self-built | Yes | Manufacturing industry | -- | 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. | December 25, 2010 | Notice number: 2010-046 | ||||
| Expanding 500MW solar module project in Dongguan | Self-built | Yes | Manufacturing industry | -- | 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. | January 19, 2011 | Notice number: 2011-003 | ||||
| Relocation and equipment upgrading of the solar module production line in Dongguan | Self-built | Yes | Manufacturing industry | -- | 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 upon the market conditions. | The project was suspended. | April 16, 2016 | Notice number: 2016-018 |
| Solar online self-cleaning coated glass project of Dongguan CSG | Self-built | Yes | Manufacturing industry | -- | The Company plans to construct an online self-cleaning coated glass line in Dongguan. | The project was suspended. | April 16, 2016 | Notice number: 2016-018 | ||||
| Malaysia-invested architectural glass plant | Self-built | Yes | Manufacturing industry | -- | 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. | April 16, 2016 | Notice number: 2016-018 | ||||
| Total | -- | -- | -- | 22,652 | 59,005 | -- | -- | 113,199 | 4,840 | -- | -- | -- |
4. Financial assets measured at fair value
□ Applicable √ Not applicable
5. Financial assets investment
(1) Securities investment
□ Applicable √ Not applicable
(2) Derivative investment
□ Applicable √ Not applicable
VI. Sale of major assets and equity
1. Sale of major assets
□ Applicable √ Not applicable
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 | Registered capital | Total assets | Net assets | Operating revenue | Operating profit | Net profit |
| Chengdu CSG Glass Co., Ltd. | Subsidiary | Development, manufacture and sales of various special glass | 260 million | 918,097,756 | 630,080,538 | 500,855,770 | 94,798,889 | 83,127,885 |
| Hebei CSG Glass Co., Ltd. | Subsidiary | Manufacture and sales of various special glass | USD 48.06million | 898,956,085 | 616,525,040 | 386,268,906 | 52,853,901 | 44,003,596 |
| Wujiang CSG Glass Co., Ltd. | Subsidiary | Manufacture and sales of various special glass | 565.04 million | 1,359,074,378 | 722,981,762 | 749,878,682 | 95,749,976 | 84,974,201 |
| Dongguan CSG Solar Glass Co., Ltd. | Subsidiary | Manufacture and sales of Solar-Energy Glass products | 480 million | 1,238,865,410 | 762,618,932 | 547,768,071 | 80,342,662 | 67,927,509 |
| Dongguan CSG Architectural Glass Co., Ltd. | Subsidiary | Deep processing of glass | 240 million | 1,062,820,076 | 503,686,986 | 500,647,770 | 54,568,255 | 46,052,342 |
| Wujiang CSG East China Architectural Glass Co., Ltd. | Subsidiary | Deep processing of glass | 320 million | 753,726,573 | 469,624,105 | 402,154,271 | 50,784,399 | 43,093,037 |
| Shenzhen Nanbo Display Technology Co., Ltd. | Subsidiary | Manufacture and sales of display device products | 143 million | 1,642,594,400 | 935,940,539 | 212,884,437 | 30,505,295 | 25,080,790 |
| Yichang CSG Polysilicon Co., Ltd. | Subsidiary | Manufacture and sales of high purity silicon material products | 1,467.98 million | 3,147,783,450 | 692,766,112 | 89,094,370 | -78,121,892 | -66,971,523 |
| Shenzhen CSG Medical Technology Co., Ltd. | Subsidiary | Sales, research and development of medical masks | 20 million | 105,522,030 | 61,185,803 | 112,807,101 | 61,626,738 | 41,185,803 |
Particulars 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 2020Alert 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 the Company faces and countermeasures
In 2020, in the face of ―New Normal‖ of domestic economic development and the task of building a―CenturyCSG‖, the Companywill face the following risks and challenges:
①The epidemic situation at home and abroad and the international political environment are still facing many uncertainties.Affected by the outbreak of COVID-19 and the complicated international political environment, the domestic economy still faces
many challenges and uncertainties. The industries the Company involved like glass industry are facing more challenges anduncertainties. In the second half of the year, the Company will continue to maintain the "wartime" command system, normalizeepidemic prevention and control, strengthen its attention to the market, timely adjust the strategy according to market changes, andstrive to achieve the annual core work objectives through steady operation.
② In 2020, under the efforts of the Board of Directors and all employees, daily operation of the Company entered normal and stableoperation. However, the Company still faces the risk of insufficient reserves of senior talents for the long-term development of theCompany. To cope with aforesaid risks, the Company will take the following measures:
A. Establish an open, equal, fair and enterprising corporate culture, strengthen the 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 external high-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.
③The glass industry continue to face the pressure of downward demand and horizontal competition, the solar photovoltaic industrywill enconter the risk of product price fluctuations and a shrinking market share for polysilicon products. The electronic glass anddisplay devices industries will encounter the risk of fierce international competition and rapid upgrade of technology. To cope withaforesaid risks, the Company will take the following measures:
A. In the flat glass industry, the Company will expand the industrial scale and enhance the competitiveness of the industry throughcontinuous lean management, differentiated management and product structure optimization.B. In the 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 the solar photovoltaic industry, the Company will continue to improve product quality, accelerate the introduction of newtechnologies and research and development, improve production efficiency, and reduce unit costs. In order to cope with the decliningmarket share of polysilicon products, the company has completed the PERC celltechnology upgrade of 400MW and madepreparations for the PERC celltechnology upgrade on the whole line to adapt to the market changes. In addition, the company'spolysilicon chip business, relying on the leading edge of technology, will continue to maintain long-term strategic cooperation withindustry leaders, to ensure that in the severe market situation still occupy a stable market share.D. In electronic glass and display devices industry, the Company will strengthen research and development of new technology aswell as new product, maintain its technical leading advantage in the industry, and rapidly develop terminal market and improveindustrial profitability.
④ Since 2020, the market price of glass and solar energy PV industrial has fluctuated greatly. At the same time, the prices ofupstream raw materials have fluctuated, and the current rising labor costs have brought risks to the Company's operations.To cope with risk, 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.
⑤ Risk of fluctuation of foreign exchange rate: At present, nearly12.8%of the sales revenue of the Company is from overseas, in thefuture, the Company will further develop overseas business, and therefore, the fluctuation of exchange rate will bring certain risk tothe 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 | Date of the meeting | Disclosure date | Disclosure index |
| The First Extraordinary Shareholders’ General Meeting of 2020 | Extraordinary general meeting | 29.04% | March 12, 2020 | March 13, 2020 | Juchao website（www.cninfo.com.cn）, Notice number:2020-016 |
| The Second Extraordinary Shareholders’ General Meeting of 2020 | Extraordinary general meeting | 29.18% | April 16, 2020 | April 17, 2020 | Juchao website（www.cninfo.com.cn）, Notice number:2020-022 |
| AnnualShareholders’General Meeting of 2019 | Annual general meeting | 28.91% | May 21, 2020 | May 22, 2020 | Juchao website（www.cninfo.com.cn）, Notice number:2020-034 |
| The Third Extraordinary Shareholders’ General Meeting of 2020 | Extraordinary general meeting | 28.99% | June 15, 2020 | June 16, 2020 | Juchao website（www.cninfo.com.cn）, Notice number:2020-048 |
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 beencompleted 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 | The original | Commitment | The Company has implemented share | May 22, | N/A | By the end of |
| for Share Merger Reform | non-tradable shareholder Shenzhen International Holdings (SZ) Limited and Xin Tong Chan Industrial Development (Shenzhen) Co., Ltd. | of share reduction | merger reform in May 2006. Till June 2009, the share of the original non-tradable shareholders which holding over 5% total shares of the 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. | 2006 | the report period, the above shareholders 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. | June 29, 2015 | 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 | Not applicable | |||||
| Commitments in | Not applicable | |||||
| initial public offering or re-financing | ||||||
| Equity incentive commitment | The listed company | CSG has promised not to provide loans and other forms of financial assistance for restricted stocks for the incentive targets under this plan, including providing guarantees for their loans. | October 10, 2017 | During the implementation of the equity incentive plan | The commitment is in normal performance. | |
| Other commitments for medium and small shareholders | Not applicable | |||||
| Completed on time(Y/N) | Yes | |||||
| If the commitments arenot 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 and Supervisory Committee for “Non-standard auditreport” of the period that issued by CPA
□ Applicable √ Not applicable
VI. Explanation from Board of Directors for “Non-standard audit report” of the previousyear
□ Applicable √ Not applicable
VII. Issues related to bankruptcy and reorganization
□ Applicable √ Not applicable
VIII.LawsuitsSignificant lawsuits and arbitrations
□ Applicable √ Not applicable
Other lawsuits
□ Applicable √ Not applicable
IX.Matters questioned by the media
□ Applicable √ Not applicable
IX. Penalty and rectification
□ Applicable √ Not applicable
XI. Integrity of the Company and its controlling shareholders and actual controllers
□ Applicable √ Not applicable
XII.Implementation of the Company’s stock incentive plan, employee stock ownership plan orother employee incentives
√Applicable □ Not applicable
On October 10, 2017, the 3
rdMeeting of the Eighth Board of Directors of the Company deliberated and approved 2017 Restricted A-shares Incentive Plan of CSG Holding Co., Ltd (Draft)and its summary, the Management Method of the Implementation and Reviewof 2017 A-share Restricted Stock Incentive Plan of CSG Holding Co., Ltd and the Proposal on Applying the General Meeting ofShareholders to Authorize the Board of Directors to Deal With the Related Matters on the Company’s 2017 Restricted A-sharesIncentive Plan. The above contents are detailed in the Announcement of the Resolution on the 3
rdMeeting of the Eighth Board ofDirectors published on www.cninfo.com.cn on October 11, 2017 (Announcement No.: 2017-063). The Company’s independentdirectors issued independent opinions on the issues involved with 2017 Restricted A-shares Incentive Plan.On October 26, 2017, the Company convened the 5th Extraordinary General Meeting in 2017, which deliberated and approved theabove three proposals. The Proposal on Adjusting the Object and Quantity Granted of 2017 A-share Restricted Stock Incentive Planand the Proposal on Firstly Granted Restricted Shares to the Object of 2017 Restricted A-share were deliberated and approved ontheinterim meeting of the Eighth Board of Directorswhich was convened on December 11, 2017. It determinedDecember 11, 2017 asthe grant date, to grant 97,511,654 restricted shares to 454 objectsat the grant priceof RMB4.28 yuan/share, with 17,046,869 sharesof reserved restrictedshares.The granting of shares was completed on December 25, 2017 and the specific content was detailed in the Announcement onCompleting the First Granting of 2017 Restricted Shares disclosed on www.cninfo.com.cn on December 22, 2017 (AnnouncementNo.:2017-079).On July 20, 2018, the Company held aninterim meeting of the Eighth Board of Directors and aninterim meeting of the theEighthBoard of Supervisors, and reviewed and approved the Proposal on Repurchase and Cancellationof Part of Restricted Stocks ofRestricted Stock Incentive Plan, and agreed to repurchase and cancel the total of 3,319,057 shares of all restricted stocks held by 15
unqualified original incentives. The independent directors of the Company issued a consent opinion. And on August 6, 2018, the2ndExtraordinary General Meeting in 2018 approved the proposal. As of September 10, 2018, the Company had completed thecancellation procedures for the above-mentioned restricted stocks in Shenzhen Branch of China Securities Depository and ClearingCorporation Limited. The total number of shares of the Company was changed from 2,856,769,678 shares to 2,853,450,621 shares.On September 13, 2018, the Company held aninterim meeting ofthe Eighth Board of Directors and aninterim meeting of theEighthBoard of Supervisors, and reviewed and approved the Proposal on Granting Reserved Restricted Stocks of 2017 Restricted StockIncentive Plan for Incentive Objects, whichdeterminedSeptember 13, 2018 as the grant date, to grant 9,826,580 restricted shares to75objectsat the grant priceof RMB3.68 yuan/share. The independent directors issued independent opinions on the above proposal,and the Company's board of supervisors re-checked the list of incentive objects on the grant date. The shares granted had beenregistered in Shenzhen Branch of China Securities Depository and Clearing Corporation Limited and listed on September 28, 2018.The total number of shares of the Company was changed from 2,853,450,621 shares to 2,863,277,201 shares.On December 12, 2018, the Company held aninterim meeting of the Eighth Board of Directors and aninterim meeting of the EighthBoard of Supervisors, and reviewed and approved the Proposal on Repurchase and Cancellationof Part of Restricted Stocks ofRestricted Stock Incentive Plan, and agreed to repurchase and cancel the total of 436,719 shares of all restricted stocks held by8unqualified original incentive objects. The proposal was approved bythe 3rdExtraordinary General Meeting in 2018 on December 28,2018. As of June 18, 2019, the Company had completed the cancellation procedures for the above-mentioned restricted stocks inShenzhen Branch of China Securities Depository and Clearing Corporation Limitedand the specific content was detailed in theAnnouncement on the Completion of RepurchasingPart ofRestricted Stocks disclosed on www.cninfo.com.cn on June 19, 2019(Announcement No.: 2019-040).On December 12, 2018, the Company held aninterim meeting of the Eighth Board of Directors and aninterim meeting ofthe EighthBoard of Supervisors, and reviewed and approved the Proposal on the First Achievement of Lifting the Restriction Conditions for theFirst GrantedShares of the Company's 2017 A-share Restricted Stock Incentive Plan in the First Unlock Period. In addition to the factthat the eight incentive objects did not have the conditions to unlock restricted stocksdue to their resignation, the total number ofincentive objectswho reached the conditions for unlocking restricted stocks was 431 persons, and the number of restricted stocks thatcould be unlocked was 43,353,050 shares, accounting for 1.51% of the current total share capital of the Company. The board ofsupervisors, independent directors, and law firms separately issued clear consent opinions. The unlock date of the restricted stocks,which was the date of listing, was December 21, 2018.On April 16, 2019, the Company held the 8th Meeting of the Eighth Board of Directors and the 8th Meeting of the Eighth Board ofSupervisors, which reviewed and approved the Proposal on Repurchase and Cancellationof Part of Restricted Stocks of RestrictedStock Incentive Plan and the Proposal on Repurchase and Cancellation of Restricted Stocks that HadNot Reached the UnlockingCondition of the Second Unlock Period, and agreed to repurchase and cancel the total of 3,473,329 shares of all restricted stocks heldby14 unqualified original incentives, as well as the total of 33,734,276 shares of 483 incentive objects that did not meet the unlockingconditions of the second unlock period.The independent directors of the Company issued a consent opinion. And on May 9, 2019, theproposals were approved by the 2018 Annual General Meeting of Shareholders. As of June 18, 2019, the Company had completedthe cancellation procedures for the above-mentioned restricted stocks in Shenzhen Branch of China Securities Depository andClearing Corporation Limitedand the specific content was detailed in the Announcement on the Completion of RepurchasingPartofRestricted Stock disclosed on www.cninfo.com.cn on June 19, 2019 (Announcement No.: 2019-040).On September 16, 2019, the Company held aninterim meeting of the Eighth Board of Directors and aninterim meeting of the EighthBoard of Supervisors, which reviewed and approved the Proposal on Repurchase and Cancellation of Part of Restricted Stocks ofRestricted Stock Incentive Plan, and agreed to repurchase and cancel the total of 1,281,158 shares of all restricted stocks held by18unqualified original incentives. The independent directors of the Company issued a consent opinion. The proposalwas approved bythe 4th Extraordinary General Meeting in 2019 onOctober 10, 2019. As of June 16, 2020, the Company had completed the
cancellation procedures for the above-mentioned restricted stocks in Shenzhen Branch of China Securities Depository and ClearingCorporation Limited and the specific content was detailed in the Announcement on the Completion of RepurchasingRestricted Stockdisclosed on www.cninfo.com.cn on June 17, 2020 (Announcement No.: 2020-049).On September 16, 2019, the Company held aninterim meeting of the Eighth Board of Directors and aninterim meeting of the EighthBoard of Supervisors, and reviewed and approved the Proposal on the First Achievement of Lifting the Restriction Conditions for theGranted Reserved Restricted Stocks of the Company's 2017 A-share Restricted Stock Incentive Plan in the First Unlock Period. Inaddition to the fact that 3 incentive objects did not have the conditions to unlock restricted stocksdue to their resignation, the totalnumber of incentive objectswho reached the conditions for unlocking restricted stocks was 71 persons, and the number of restrictedstocks that could be unlocked was 3,909,350 shares, accounting for 0.13% of the current total share capital of the Company. Theboard of supervisors, independent directors, and law firms separately issued clear consent opinions. The unlock date of the restrictedstocks, which was the date of listing, was September 25, 2019.On April 28, 2020, the Company held the 11th Meeting of the Eighth Board of Directors and the 11th Meeting of the Eighth Board ofSupervisors, which reviewed and approved the Proposal on Repurchase and Cancellation of Part of Restricted Stocks of RestrictedStock Incentive Plan and the Proposal on Repurchase and Cancellation of Restricted Stocks that HadNot Reached the UnlockingCondition of the ThirdUnlock Period, and agreed to repurchase and cancel the total of 909,936 shares of all restricted stocks heldby14 unqualified original incentives, as well as the total of 35,312,962 shares of 451 incentive objects that did not meet the unlockingconditions of the third unlock period.The independent directors of the Company issued a consent opinion. And on May 21, 2020, theproposals were approved by the 2019 Annual General Meeting of Shareholders. As of June 16, 2020, the Company had completedthe cancellation procedures for the above-mentioned restricted stocks in Shenzhen Branch of China Securities Depository andClearing Corporation Limited and the specific content was detailed in the Announcement on the Completion of RepurchasingRestricted Stock disclosed on www.cninfo.com.cn on June 17, 2020 (Announcement No.: 2020-049).XIII.Major related transaction
1. Related transaction with routine operation concerned
□ Applicable √ Not applicable
2. Related transaction with acquisition of assets or equity, sales of assets or equity concerned
□ Applicable √ Not applicable
3. Related transaction with jointly external investment concerned
□ Applicable √ Not applicable
4. Credits and liabilities with related parties
□ Applicable √ Not applicable
5. Other major related transaction
□ Applicable √ Not applicable
XIV.Particulars about non-operating fund of listed company occupied by controllingshareholder and its affiliated enterprises
□Applicable √Not applicable
XV. Significant contracts and their implementation
1. Trusteeship, contractand leasing
(1) Trusteeship
□ Applicable √ Not applicable
(2) Contract
□ Applicable √ Not applicable
(3) Leasing
□ Applicable √ Not applicable
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) |
| Zhanjiang CSG New Energy Co., Ltd. | 2017-7-31 | 9,000 | 2017-9-26 | 4,781 | Joint liability guarantee | 3 years | Yes | No |
| Xianning CSG Photovoltaic Glass Co., Ltd. | 2016-8-16 | 30,000 | 2017-1-3 | 16,465 | Joint liability guarantee | 3 years | No | No |
| Xianning CSG Photovoltaic | 2017-8-1 | 20,000 | 2017-9-7 | 8,100 | Joint liability | 3 years | Yes | No |
| Glass Co., Ltd. | guarantee | |||||||
| Yichang Nanbo Photoelectric Glass Co., Ltd. | 2020-5-23 | 2,000 | 2020-5-29 | 1,200 | Joint liability guarantee | 1 year | No | No |
| Yichang Nanbo Photoelectric Glass Co., Ltd. | 2017-5-22 | 5,472 | 2017-5-26 | 1,824 | Joint liability guarantee | 3 years | Yes | No |
| Dongguan CSG PV-tech Co., Ltd. | 2017-11-27 | 20,000 | 2017-12-20 | 7,252 | Joint liability guarantee | 3 years | Yes | No |
| Dongguan CSG PV-tech Co., Ltd. | 2020-3-6 | 5,500 | 2020-4-14 | 2,000 | Joint liability guarantee | 1 year | No | No |
| Dongguan CSG PV-tech Co., Ltd. | 2019-8-23 | 30,500 | 2019-12-17 | 2,403 | Joint liability guarantee | 2 years | No | No |
| Xianning CSG Glass Co., Ltd. | 2017-9-16 | 25,000 | 2017-9-18 | 6,488 | Joint liability guarantee | 3 years | Yes | No |
| Xianning CSG Glass Co., Ltd. | 2019-2-26 | 4,000 | 2019-7-30 | 3,800 | Joint liability guarantee | 1 year | No | No |
| Hebei CSG Glass Co., Ltd. | 2017-10-10 | 20,000 | 2017-10-30 | 7,252 | Joint liability guarantee | 3 years | Yes | No |
| Chengdu CSG Glass Co., Ltd. | 2019-6-1 | 5,000 | 2019-6-1 | 2,000 | Joint liability guarantee | 1 year | No | No |
| Chengdu CSG Glass Co., Ltd. | 2020-2-25 | 8,000 | 2020-3-4 | 2,500 | Joint liability guarantee | 1 year | No | No |
| Sichuan CSG Energy Conservation Glass Co., Ltd. | 2019-6-1 | 5,000 | 2019-7-14 | 1,500 | Joint liability guarantee | 1 year | No | No |
| Wujiang CSG Glass Co., Ltd. | 2017-8-28 | 30,000 | 2017-9-13 | 10,261 | Joint liability guarantee | 3 years | Yes | No |
| Wujiang CSG Glass Co., Ltd. | 2019-9-18 | 10,000 | 2019-9-20 | 1,780 | Joint liability guarantee | 1 year | No | No |
| Wujiang CSG Glass Co., Ltd. | 2019-11-21 | 10,000 | 2019-11-21 | 655 | Joint liability guarantee | 1 year | No | No |
| Wujiang CSG Glass Co., Ltd. | 2020-2-25 | 8,000 | 2020-3-4 | 2,000 | Joint liability guarantee | 1 year | No | No |
| Wujiang CSG Glass Co., Ltd. | 2019-12-10 | 5,000 | 2020-4-30 | - | Joint liability guarantee | 1 year | No | No |
| Wujiang CSG Glass Co., Ltd. | 2020-2-25 | 10,000 | 2020-5-11 | - | Joint liability guarantee | 1 year | No | No |
| Wujiang CSG Glass Co., Ltd. | 2019-10-28 | 6,000 | 2019-10-28 | - | Joint liability guarantee | 1 year | Yes | No |
| Dongguan CSG Architectural Glass Co., Ltd. | 2019-4-17 | 6,000 | 2019-8-29 | 1,000 | Joint liability guarantee | 1 year | Yes | No |
| Dongguan CSG Architectural Glass Co., Ltd. | 2019-12-20 | 18,000 | 2020-3-11 | 8,100 | Joint liability guarantee | 1 year | No | No |
| Wujiang CSG East China Architectural Glass Co., Ltd. | 2019-11-21 | 10,000 | 2019-11-21 | - | Joint liability guarantee | 1 year | Yes | No |
| Wujiang CSG East China Architectural Glass Co., Ltd. | 2019-9-18 | 10,000 | 2019-9-20 | 3,985 | Joint liability guarantee | 1 year | No | No |
| Wujiang CSG East China Architectural Glass Co., Ltd. | 2018-10-9 | 10,000 | 2019-3-28 | 2,000 | Joint liability guarantee | 1 year | Yes | No |
| Dongguan CSG Solar Glass Co., Ltd. | 2019-10-28 | 10,000 | 2019-12-17 | 5,054 | Joint liability guarantee | 1 year | No | No |
| Dongguan CSG Solar Glass Co., Ltd. | 2020-2-25 | 8,000 | 2020-3-4 | 1,497 | Joint liability guarantee | 1 year | No | No |
| Dongguan CSG Solar Glass Co., Ltd. | 2019-2-12 | 7,288 | 2019-5-29 | 950 | Joint liability guarantee | 1 year | No | No |
| Dongguan CSG Solar Glass Co., Ltd. | 2019-1-22 | 4,500 | 2019-1-22 | 1,000 | Joint liability guarantee | 1 year | Yes | No |
| Dongguan CSG Solar Glass Co., Ltd. | 2020-4-30 | 5,000 | 2020-5-18 | - | Joint liability guarantee | 1 year | No | No |
| Qingyuan CSG New Energy-Saving Materials Co.,Ltd. | 2019-12-10 | 4,330 | 2019-12-10 | - | Joint liability guarantee | 1 year | No | No |
| Qingyuan CSG New Energy-Saving Materials Co.,Ltd. | 2019-12-10 | 5,000 | 2020-4-26 | - | Joint liability guarantee | 1 year | No | No |
| Qingyuan CSG New Energy-Saving Materials Co.,Ltd. | 2019-12-10 | 50,000 | 2020-4-26 | 3,590 | Joint liability guarantee | 5 years | No | No |
| Qingyuan CSG New Energy-Saving Materials Co.,Ltd. | 2019-3-19 | 20,000 | 2019-3-19 | 12,698 | Joint liability guarantee | 3 years | No | No |
| Yichang CSG Display Co., Ltd. | 2018-12-13 | 5,000 | 2019-3-31 | 1,214 | Joint liability guarantee | 1 year | No | No |
| Yichang CSG Display Co., Ltd. | 2020-5-23 | 5,000 | 2020-5-29 | 3,000 | Joint liability guarantee | 1 year | No | No |
| Yichang CSG Display Co., Ltd. | 2019-2-26 | 2,432 | 2019-6-25 | 300 | Joint liability guarantee | 1 year | Yes | No |
| Tianjin CSG Energy-Saving Glass Co., Ltd. | 2019-12-24 | 3,000 | 2020-4-9 | 160 | Joint liability guarantee | 1 year | No | No |
| Tianjin CSG Energy-Saving | 2020-4-30 | 5,000 | 2020-6-30 | 1,911 | Joint liability | 1 year | No | No |
| Glass Co., Ltd. | guarantee | |||||||
| China Southern Glass (Hong Kong) Ltd. | 2020-2-25 | 48,000 | 2020-4-4 | 6,718 | Joint liability guarantee | 1 year | No | No |
| Dongguan CSG Architectural Glass Co., Ltd. | 2019-8-23 | 48,000 | 2019-9-17 | 4,087 | Joint liability guarantee | 1 year | No | No |
| Dongguan CSG Solar Glass Co., Ltd. | 2019-8-23 | 48,000 | 2019-9-17 | 2,200 | Joint liability guarantee | 1 year | No | No |
| Dongguan CSG PV-tech Co., Ltd. | 2019-8-23 | 48,000 | 2019-9-17 | 5,135 | Joint liability guarantee | 1 year | No | No |
| Qingyuan CSG New Energy-Saving Materials Co.,Ltd. | 2019-8-23 | 48,000 | 2019-9-17 | - | Joint liability guarantee | 1 year | No | No |
| Hebei Panel Glass Co., Ltd. | 2019-8-23 | 48,000 | 2019-9-17 | - | Joint liability guarantee | 1 year | No | No |
| Chengdu CSG Glass Co.,Ltd. | 2019-8-23 | 48,000 | 2019-9-17 | - | Joint liability guarantee | 1 year | No | No |
| Sichuan CSG Energy Conservation Glass Co., Ltd. | 2019-8-23 | 48,000 | 2019-9-17 | 3,952 | Joint liability guarantee | 1 year | No | No |
| Xianning CSG Glass Co., Ltd. | 2019-8-23 | 48,000 | 2019-9-17 | - | Joint liability guarantee | 1 year | No | No |
| XianningCSG Energy-SavingGlass Co., Ltd. | 2019-8-23 | 48,000 | 2019-9-17 | 1,855 | Joint liability guarantee | 1 year | No | No |
| Wujiang CSG East China Architectural Glass Co., Ltd. | 2019-8-23 | 48,000 | 2019-9-17 | 777 | Joint liability guarantee | 1 year | No | No |
| Tianjin CSG Energy-Saving Glass Co., Ltd. | 2019-8-23 | 48,000 | 2019-9-17 | 2,331 | Joint liability guarantee | 1 year | No | No |
| Xianning CSG Photovoltaic Glass Co., Ltd. | 2020-2-25 | 48,000 | 2020-6-24 | 700 | Joint liability guarantee | 1 year | No | No |
| Dongguan CSG Jingyu New Material Co., Ltd. | 2020-2-25 | 48,000 | 2020-6-24 | - | Joint liability guarantee | 1 year | No | No |
| Dongguan CSG Architectural Glass Co., Ltd. | 2020-2-25 | 10,000 | 2020-3-26 | 4,000 | Joint liability guarantee | 1 year | No | No |
| Dongguan CSG PV-tech Co., Ltd. | 2019-8-23 | 30,500 | 2020-6-18 | 4,033 | Joint liability guarantee | 2 years | No | No |
| Total amount of approving guarantee for subsidiaries in report period (B1) | 172,118 | Total amount of actual occurred guarantee for subsidiaries in report period (B2) | 41,409 | |||||
| Total amount of approved guarantee for | 377,118 | Total balance of actual | 114,251 | |||||
| subsidiaries at the end ofreportperiod (B3) | guarantee for subsidiaries at the end of reportperiod (B4) | ||
| Total amount of guarantee of the Company (total of three abovementioned guarantee) | |||
| Total amount of approving guarantee in report period (A1+B1+C1) | 172,118 | Total amount of actual occurred guarantee in report period (A2+B2+C2) | 41,409 |
| Total amount of approved guarantee at the end of report period (A3+B3+C3) | 377,118 | Total balance of actual guarantee at the end of report period (A4+B4+C4) | 114,251 |
| The proportion of the total amount of actual guarantee in the net assets of the Company (that is A4+ B4+C4) | 11.81% | ||
| Including: | |||
| Amount of guarantee for shareholders, actual controller and its related parties(D) | |||
| The debts guarantee amount provided for the guaranteed parties whose assets-liability ratio exceed 70% directly or indirectly(E) | |||
| Proportion of total amount of guarantee in net assets of the Company exceed 50%(F) | |||
| Total amount of the aforesaid three guarantees(D+E+F) | |||
| Explanations on possibly bearing joint and several liquidating responsibilities for undue guarantees (if any) | |||
| Explanations on external guarantee against regulated procedures(if any) | |||
| Explanations on Guarantee of the Company for the subsidiaries | During the reportperiod, the total amount of guarantee approved by the Company was RMB 1,721.18million; the Company and its wholly-owned subsidiary, Yichang CSG Polysilicon Co., Ltd., jointly guaranteed Dongguan CSG PV-tech Co., Ltd. The Company carried out RMB 400 million of BillPool business, and The Company and its holding subsidiaries can use Maximum Amount Pledge, General Pledge, Deposit Pledge, Bill pledge, Guarantee Pledge and other guarantee methods for the establishment and use of Bill Pool. | ||
(2) Illegal external guarantee
□ Applicable √ Not applicable
3. Entrusted Financing
□Applicable √Not applicable
4. Other material contracts
□ Applicable √ Not applicable
XVI. Social responsibilities
1. 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 vent | Dust≤30mg/m?； Soot≤25 mg/m?；SO2≤200 mg/m?； NOx≤350 mg/m? | 《Emission standard of air pollutants for flat glass industry》(GB26453-2011) | Particulates: 7.46t； SO2：67.03t；NOx ：140.5t | Particulates: 96.82t/a； SO2：636.5t/a； NOx：1113.89t/a | Reach the discharge standard |
| Chengdu CSG Glass Co., Ltd. | Dust\Soot\ SO2\ Nitrogen oxide | Discharged after denitrification, desulfurization and dust removal | 15 | Chimney, Exhaust vent | Dust≤30mg/m?； Soot≤20mg/m?；SO2≤200mg/m?；NOx≤350mg/m? | 《Emission standard of air pollutants for flat glass industry》(GB26453-2011) | Particulates:8.09t； SO2：155.17t；NOx ：307.15t | Particulates: 129.395t/a；SO2：1035.162t/a； NOx：1811.536t/a | Reach the discharge standard |
| Hebei CSG Glass Co., Ltd. | Dust＼Particulates＼SO2＼Nitrogen oxide | Dischargeafter denitrification, desulfurization and dust removal | 12 | Chimney, Exhaust vent | Dust≤20mg/m?； Particulates≤10mg/m?；SO2≤50mg/m? | 《Emission standard of air pollutants for flat glass industry》DB13/2168-2015 Hebei Local | Particulates:1.473t；SO2：14.625t；NOx ： | Particulates: 59.78t/a； SO2：498.18t/a； | Reach the discharge standard |
| treatment | ；NOx≤200mg/m? | Standard | 97.805t | NOx：982.2t/a | |||||
| WujiangCSG Glass Co., Ltd. | Particulates\SO2\ Nitrogen oxide | Discharged after denitrification, desulfurization and dust removal | 39 | Chimney, Exhaust vent | Particulates≤30mg/m?；SO2≤250 mg/m?；NOx≤350 mg/m? | 《Emission standard of air pollutants for flat glass industry》(GB26453-2011) | Particulates:21.306t；SO2：94.808t；NOx：215.11t | Particulates: 76.91t/a； SO2：238.28t/a； NOx：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 vent | Dust≤5mg/m?； Soot≤10 mg/m?；SO2≤400 mg/m?；NOx≤550 mg/m? | 《Emission standard of air pollutants for glass industry》（DB 44-2159-2019） | Particulates:5.58t； SO2：102.50t；NOx ：141.54t。 | Particulates: 34.85t/a； SO2：300.99t/a； NOx：535.67t/a | Reach the discharge standard |
| Dongguan CSG Architectural Glass Co., Ltd. | PH\COD\ Ammonia nitrogen | Discharged to the sewage treatment plant after being treated by the company's sewage treatment station. | 1 | Discharge outlets of waste water | pH：6~9 COD：5 mg/L； Ammonia nitrogen：0.537mg/L | 《Guangdong Province water pollutant emission limit》（DB44/26-2001）the second period, the first grade standard | COD：0.138t； Ammonia nitrogen:0.015t | COD：5.4t/a； Ammonia nitrogen:0.6t/a | Reach the discharge standard |
| Dongguan CSG PV-tech Co., Ltd. | Waste water:COD；Exhaust gas:NOx＼VOCX | The wastewater is discharged after being treated by the sewage station, and the exhaust gas is discharged after being treated by the exhaust gas treatment tower. | 20 | Sewage vent，Exhaust vent | Wastewater: COD≤70 mg/L； Exhaust gas: NOx≤30mg/m3；VOCX≤30mg/m? | 《Guangdong Province water pollutant emission limit》（DB44/26-2001）Second period first level standard；；《Battery industry pollutant discharge standards》（GB30484-2013）；Guangdong Provincial Local | Wastewater：COD：1.098t； Exhaust gas： Nitrogen oxide：11.271t； VOC：0.84t | Wastewater： COD：2.44t/a； Exhaust gas： Nitrogen oxide：33.15t/a； VOC：1.93t/a | Reach the discharge standard |
| Standard 《Volatile organic compounds emission standard for furniture manufacturing industry》（DB44/814-2010）Second period standard | |||||||||
| Hebei PanelGlass Co., Ltd. | Dust＼Soot＼SO2＼Nitrogen oxide | Discharge after the treatment of denitrification and dust removal | 5 | Chimney,exhaust vent | Dust≤30mg/m?； Soot≤10 mg/m?；SO2≤50 mg/m?；NOx≤200mg/m?。 | 《Electrical Glass Industry Air Pollutant Emission Standards》(GB29495-2013) | Particulates:0.047t；SO2：0.3t；NOx ：3.199t。 | Particulates: 8.2125t/a；SO2：22t/a；NOx：39.4t/a。 | Reach the discharge standard |
| Yichang CSG Display Co., Ltd. | COD＼Ammonia nitrogen＼Nitrogen oxide | The waste water is discharged after being treated by the sewage station, and the exhaust gas is discharged after being treated by the exhaust gas treatment tower. | 2 | Sewage vent，Exhaust vent | COD≤500mg/；NOx<240mg/m?。 | 《Sewage Integrated Emission Standards》(GB8979-1996) Level 3 Standard；《The Integrated Emission Standard of Air Pollutants》（GB16297-1996） | COD：20.66t；Nitrogen oxide：0.0096t | COD：99.5t/a； NOx：22.4t/a | Reach the discharge standard |
| Xianning CSG PhotoelectricGlass Co., Ltd. | Dust\Soot\ SO2\ Nitrogen oxide | Discharge after the treatment of denitrification and dust removal | 6 | Chimney,Exhaust vent | Dust≤15mg/m?； Soot≤15 mg/m?；SO2≤10 mg/m?；NOx≤350 mg/m?。 | 《Electrical Glass Industry Air Pollutant Emission Standards》GB29495-2013 | Particulates:1.165t； NOx 32.36t SO2：0.01842t | Particulates: 17.656t/a；SO2：65.6t/a； Nitrogen oxide：163.81t/a | Reach the discharge standard |
Construction and operation of pollution prevention and control facilitiesThe Company has built flue gas dust removal and denitrification system on production lines. The system runs normally, and theemission of exhaust gas meets regulations.The environmental impact assessment of construction projects and other environmental protection licenseEnvironmental impact assessment of the newly builtjadeglassplate project of Dongguan CSG JingyuNew Material Co., Ltd.hadbeen
carried out and approved in 2018.Environmental protection acceptance of the project has been completed.Environmental impactassessment of AG&AF glass plateexpansionproject of Yichang Nanbo Display Co., Ltd.had been carried out and approved in 2018,and the project is under construction at present.Environmental impact assessment of Easy-clean GlassCoating Production LineProjectof Xianning CSG Energy-Saving Glass Co., Ltd.had been carried out and approved in 2018. The project has completedconstruction and now enters the pilot production stage.Environmental impact assessment of Special Glass Expansion Project with200,000-ton annual capacityof Qingyuan CSG New Energy-Saving Materials Co.,Ltd. was carried out and approved in 2019, and theproject is under construction at present. Environmental impact assessment of the project for the construction of Quartz materialprocessing line by Qingyuan CSG had been carried out and approved in 2018.Environmental protection acceptance of the project hasbeen completed.Environmental impact assessment of the manufacturing base project of lightweight & high-permeability panel forsolar energy equipmentof Anhui CSG New Energy Materials Technology Co., Ltd.had been carried out and approved in 2020.Othernew projectsof subsidiaries that did not involve changes in production capacity also carried out the ―Three Simultaneous‖ proceduresof environmental protection for construction projects, and were rewarded with the pollutant discharge license within the validityperiod.The subsidiaries timely declared the pollutant discharge, carried out the monitoring and reporting of pollutant discharge andpaid the pollutant discharge fee according to the relevant regulations of the state.Emergency response plan system of environment incidentIn accordance with the national requirements, allsubsidiaries prepared emergency environmental response plan for environmentincident, organized and carried out expert evaluation and filed with the local environmental protection department as required,conducted the emergency drill against environmental incidents. And there were no major environmental incidents occurred inthe firsthalf of 2020.Environmental self-monitoring schemeIn accordance with provisions of national laws and regulations and the requirements put forward in the assessment documents of theenvironment impact of construction project and reply, the subsidiaries built on-line monitoring equipment for waste water and wastegas which are put into operation normally. They compared and reviewed the effectiveness of the on-line monitoring facilities on aregular basis. Besides, they also entrusted the third parties to carry out the manual monitoring of the environment and fully monitor thedischarge of the pollutants.Other environmental information to be disclosedNil.Other information related to environment protectionNil.
2. 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.
XVII. Statement on other important matters
√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. It agreed that the Company should register and issue ultra-short-termfinancing bills with a registered amount not exceeding RMB 4 billion yuan (the limit is not subject to the limit of 40% of net assets).
With the period of validity of the quota not longer than two years, such ultra-short-term financing bills will be issued by installmentsin accordance with the actual capital needs of the Company and the situation of inter-bank market funds. On Sep. 17, 2018, theChinese Association of Interbank Market Traders held its 63rd registration meeting in 2018, and decided to approve the registrationof the ultra-short-term financing bills with a total amount of 1.5 billion yuan and a validity period of two years. The ultra-short-termfinancing bills are underwritten jointly by Minsheng Bank of China Limited and Industrial Bank Co., Ltd, and can be issued byinstallments within the validity period of registration. On February 21, 2020, the Company issued ultra-short-term financing billswith a total amount of 300 million yuan and a term of 270 days in the first phase of 2020, with an interest rate of 4% and a paymentdate of November 21, 2020.On June 15, 2020, the Company the third extraordinary general meeting of shareholders 2020 deliberated and approved the proposalon application for registration and issuance of ultra short-term financing bills and medium-term notes, which agreed that theCompany should register and issue ultra-short-term financing billswith a registered amount not exceeding 1.5 billion yuan (the limitis not subject to the limit of 40% of net assets).With the period of validity of the quota not longer than two years, suchultra-short-term financing bills will be issued by installments in accordance with the actual capital needs of the Company and thesituation of inter-bank market funds.
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 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 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 forregistration and issuance of medium-term notes with total amount of RMB 0.8 billion, which could be issued by stages within periodof validity of the registration according to the Company’s actual demands for funds and the status of inter-bank funds. On 2 March2018, National Association of Financial Market Institutional Investors (NAFMII) held the 14
th
registration meeting of 2018, in whichNAFMII decided to accept the registration of the Company’s medium-term notes, amounting to RMB 0.8 billion and valid for twoyears. Shanghai Pudong Development Bank Co., Ltd. and China CITIC Bank Corporation Limitedwere joint lead underwriters ofthese medium-term notes which could be issued by stages within period of validity of the registration.On May 4, 2018, the companyissued the first medium-term notes with a total amount of 800 million yuan and a term of three years. The issue rate was 7%, and theredemption date was May 4, 2021.On June 15, 2020, the Third Extraordinary Shareholders’ General Meeting 2020of CSG deliberated and approved the proposal onapplication for registration and issuance of ultra short-term financing bills and medium-term notes, which agreed that the Companyshould register and issue medium-term noteswith a registered amount not exceeding 1.5 billion yuan (the limit is not subject to thelimit of 40% of net assets).With the period of validity of the quota not longer than two years, such ultra-short-term financing billswill be issued by installments in accordance with the actual capital needs of the Company and the situation of inter-bank marketfunds.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 in 2017 reviewed and approved ―the Proposal on thePublic Issuance of Corporate Bonds for Qualified Investors". On February 27, 2019, the First Extraordinary General Meeting ofShareholders in 2019 The ―Proposal on Extending the Validity Period of the Shareholders' Meeting for the Public Offering of
Corporate Bonds to Qualified Investors‖ agreed to issue corporate bonds with a total issue of no more than RMB 2 billion and a termof no more than 10 years.On July 22, 2019, the Company received the ―Approval of Approving CSG Holding Co., Ltd. to Issue Corporate Bonds to QualifiedInvestors‖ issued by China Securities Regulatory Commission (ZJXK [2019] No. 1140). On March 24, 2020 and March 25, 2020, theCompany issued the first batch of corporate bonds with total amount of RMB 2 billion and valid term of 3 years at the issuance rateof 6%, which will be redeemed on March 25 2023(fordetails, please refer to "section IX Corporate Bonds").On March 12, 2020, the First Extraordinary General Meeting of Shareholders in 2020 reviewed and approved ―the Proposal on thePublic Issuance of Corporate Bonds for Qualified Investors", agreed to issue corporate bonds with a total issue of no more than RMB
1.8 billion and a term of no more than 10 years.
On April 22, 2020, the Company received the ―Approval of Approving CSG Holding Co., Ltd. to Issue Corporate Bonds to QualifiedInvestors‖ issued by China Securities Regulatory Commission (ZJXK[2020] No. 784).
4. The situation of meeting of medium term note holdersduring the report period
On May29, 2020, the Company issued ―Announcement on Holding 2015 First-term Medium-term Noteholders Meeting of CSG in2020‖ and ―Announcement on Holding 2018First-term Medium-term Noteholders Meeting of CSG in 2020‖due to capital reductioncaused by repurchase and cancellationof part ofrestricted stocks of restricted stock incentive plan and repurchase and cancellation ofrestricted stocks that hadnot reached the unlocking condition of the thirdunlock period. On June12, 2020, the Company's 2015first-term medium-term noteholders meeting, 2018 first-term medium-term noteholders meeting was held off-site and voted. The2015 first mid-term note holders meeting and the 2018 first mid-term noteholders' meeting was not effective as the total voting rightsheld by the holders attending the meeting did not reachtwo-thirds of the total voting rights as required.
5. Entrusted loans
With the approval of the interim meeting of the 8th board of directors of the Company held on December 20, 2019, the Companyissued RMB 300 million entrusted loans to Tengchong Yuezhou Water Investment and Development Co., Ltd, with valid term ofthree months and annual interest rate at 8.5%. By March 24, 2020, the principal and income of the entrusted loan had been recoveredas agreed in contract.
6. Non-public issuance of A shares
The interim meeting of the 8th board of directors of the Company held on March 5, 2020 deliberated and approved the relatedproposals ofnon-public issuance of A shares, and agreed the Company to issueA shares privately. The proposals were deliberated andapproved by the 2nd Extraordinary General Meeting of Shareholders of 2020 which held on April 16, 2020. In May 2020, theCompany received the first feedback notice on the examination of administrative licensing projects of China Securities RegulatoryCommission (No. 200819) issued by the China Securities Regulatory Commission, and published ―Announcement on Reply to theFeedback of SpplicationDocuments For Non-public Offering of A shares‖ and ―Announcement on the Revised Reply to the Feedbackof Application Documents For Non-public Offering of A shares‖ on June 8, 2020 and June 29, 2020respectively. On June 5, 2020, theCompany held an interim meeting of the 9th board of directors, deliberated and approved the relevant proposals on adjusting theCompany's non-public issuance of A shares. On July 6, 2020, the Issuance Audit Committee of China Securities RegulatoryCommission reviewed the Company's application for non-public issuance of A shares. According to the audit results, the Company'sapplication for non-public issuance of A shares was approved. On July 22, 2020, the Company received the ―Reply on the Approvalof Non-publicIssuanceof Shares of CSG‖ (ZJXK [2020] No. 1491) issued by China Securities Regulatory Commission.
For details, please refer toJuchao website (www.cninfo.com.cn).
XVIII. Significant events of subsidiaries of the Company
□ Applicable √ Not applicable
Section VI. Changes in Shares and Particulars about ShareholdersI. Changes in Share Capital
1. Changes in Share Capital
Unit: Share
| Before the Change(Note) | 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 | 41,770,770 | 1.34% | -37,504,056 | -37,504,056 | 4,266,714 | 0.14% | |||
| 1. State-owned shares | |||||||||
| 2. State-owned legal person’s shares | |||||||||
| 3. Other domestic shares | 41,770,770 | 1.34% | -37,504,056 | -37,504,056 | 4,266,714 | 0.14% | |||
| Including: Domestic legal person’s shares | |||||||||
| Domestic natural person’s shares | 41,770,770 | 1.34% | -37,504,056 | -37,504,056 | 4,266,714 | 0.14% | |||
| 4. Foreign shares | |||||||||
| Including: Foreign legal person’s shares | |||||||||
| Foreign natural person’s shares | |||||||||
| II. Unrestricted shares | 3,066,425,393 | 98.66% | 3,066,425,393 | 99.86% | |||||
| 1. RMB Ordinary shares | 1,957,059,361 | 62.96% | 1,957,059,361 | 63.73% | |||||
| 2. Domestically listed foreign shares | 1,109,366,032 | 35.69% | 1,109,366,032 | 36.13% | |||||
| 3. Overseas listed foreign shares | |||||||||
| 4. Others | |||||||||
| III.Total shares | 3,108,196,163 | 100% | -37,504,056 | -37,504,056 | 3,070,692,107 | 100% | |||
Note: The number of shares before the change in the report was adjusted compared with the ending amount in the AnnualReport2019, whichwas due to the adjustment of the current restricted shares by China Securities Depository and ClearingCorporation Limited before the opening of the first trading day in 2020.
Reason for equity changes
√Applicable □Not applicable
The Company's total shares decreased by 37,504,056 due to the repurchase and cancellationof part ofrestricted stocks of restrictedstock incentive plan and repurchase and cancellation of restricted stocks that hadnot reached the unlocking condition of thethirdunlock period.
Approval on equity changes
√Applicable □Not applicable
1.The Company’s Proposal on Repurchase and Cancellationof Part of Restricted Stocks of Restricted Stock Incentive Plan wasdeliberated and approved by theinterim meeting of the Eighth Board of Directors and theinterim meeting ofthe Eighth Board ofSupervisors held on September16, 2019,and was deliberated and approved bythe FourthGeneral Meeting of Shareholders of 2019.
2. The Company’s Proposals on Repurchase and Cancellationof Part of Restricted Stocks of Restricted Stock Incentive PlanandRepurchase and Cancellationof Restricted StocksThat HadNot Reached The Unlocking Condition of The ThirdUnlockPeriodwere deliberated and approved by the 11
th meeting of the Eighth Board of Directors and the 11
thmeeting ofthe Eighth Board ofSupervisors, and were deliberated and approved bythe 2019 AnnualGeneral Meeting of Shareholders.
Transfer of ownership for equity changes
√Applicable □Not applicable
1. TheCompany repurchased and cancelled all restricted stocks held by 32 unqualified original incentive objects and the restrictedstocks held by 451 incentive objects that did not meet the unlocking conditions of the third unlock period.As of June 16, 2020, theCompany had completed the cancellation procedures for the above-mentioned restricted stocks in Shenzhen Branch of ChinaSecurities Depository and Clearing Corporation Limited.
2.For the change of senior management and lockup of their shareholdings, Shenzhen Branch of China Securities Depository andClearing Corporation Limitedadjusted the Company’s restricted shares and unrestricted shares accordingly in accordance withrelevant regulations.
Implementation progress of share buyback
□Applicable √Not applicable
Implementation progress of share buyback reduction through centralized bidding
□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
Please refer tothe main accounting data and financial indicators in this report for the details of the impact of stock changes.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 the beginning of the period(Note 1) | Number of shares released in the Period | Number of shares repurchased in the period(Note2) | Number of new shares restricted in the Period | Number of shares restricted at the end of the Period | Reason for restriction | Released date |
| Chen Lin | 2,130,274 | 1,217,300 | 912,974 | Executive lockup stocks of912,974shares | Releasing of executive lockup stocks will be implemented according to relevant policies. | ||
| Wang Jian | 1,328,250 | 759,000 | 569,250 | Executive lockup stocks of569,250shares | Releasing of executive lockup stocks will be implemented according to relevant policies. | ||
| Lu Wenhui | 1,597,705 | 912,975 | 684,730 | Executive lockup stocks of684,730shares | Releasing of executive lockup stocks will be implemented according to relevant policies. | ||
| He Jin | 1,178,100 | 673,200 | 504,900 | Executive lockup stocks of504,900shares | Releasing of executive lockup stocks will be implemented according to relevant policies. | ||
| Yang Xinyu | 1,521,623 | 869,499 | 652,124 | Executive lockup stocks of652,124shares | Releasing of executive lockup stocks will be implemented according to relevant policies. | ||
| Core Management Team | 22,729,518 | 22,729,518 | 0 | -- | -- | ||
| Technology and Business Backbone | 9,389,997 | 9,389,997 | 0 | -- | -- | ||
| Others | 1,895,303 | 952,567 | 942,736 | 942,736 shares locked due to the resignation of supervisorand executives | Releasing of executive lockup stocks will be implemented according to relevant policies. | ||
| Total | 41,770,770 | 37,504,056 | 4,266,714 | -- | -- |
Note1: The number of shares restricted at the beginning of the period in the above table was adjusted compared with the endingamount in the Annual Report2019, whichwas due to the adjustment of the current restricted shares by China Securities Depositoryand Clearing Corporation Limited before the opening of the first trading day in 2020.Note2: The Company repurchased and cancelled all restricted stocks held by 32 unqualified original incentive objects and the
restricted stocks held by 451 incentive objects that did not meet the unlocking conditions of the third unlock period.As of June 16,2020, the Company had completed the cancellation procedures for the above-mentioned restricted stocks in Shenzhen Branch ofChina Securities Depository and Clearing Corporation Limited.
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 | 147,420 | 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. – HailiNiannian | Domestic non state-owned legal person | 15.19% | 466,386,874 | 466,386,874 | |||||||
| Foresea Life Insurance Co., Ltd. – Universal Insurance Products | Domestic non state-owned legal person | 3.86% | 118,425,007 | 118,425,007 | |||||||
| Zhongshanruntian Investment Co., Ltd. | Domestic non state-owned legal person | 2.82% | 86,633,447 | 86,633,447 | 86,633,447 | Pledged | 81,000,000 | ||||
| Foresea Life Insurance Co., Ltd. – Own Fund | Domestic non state-owned legal person | 2.11% | 64,765,161 | 64,765,161 | |||||||
| Hong Kong Securities Clearing Company Limited | Foreign legal person | 1.93% | 59,415,950 | 24,091,624 | 59,415,950 | ||||||
| Central Huijin Asset Management Ltd. | State-owned legal person | 1.89% | 57,915,488 | 57,915,488 | |||||||
| China Galaxy International Securities (Hong Kong) Co., Limited | Foreign legal person | 1.35% | 41,349,778 | -194,592 | 41,349,778 | ||||||
| China Merchants Securities (HK) Co., Limited | State-owned legal person | 1.06% | 32,423,421 | -35,516 | 32,423,421 | ||||||
| Shenzhen International Holdings | State-owned | 0.95% | 29,095,000 | 29,095,000 | |||||||
| (SZ) Limited | legal person | ||||||||||
| VANGUARD EMERGING MARKETS STOCK INDEX FUND | Foreign legal person | 0.62% | 19,177,013 | -143,220 | 19,177,013 | ||||||
| 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.-HailiNiannian, Foresea Life Insurance Co., Ltd.-Universal Insurance Products, Foresea Life Insurance Co., Ltd.-Own Fund are all held by Foresea Life Insurance Co., Ltd. Shenzhen Jushenghua Co., Ltd. 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. | ||||||||||
| 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. – 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 | ||||||||
| ZhongshanruntianInvestment 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 | ||||||||
| Hong Kong Securities Clearing Company Limited | 59,415,950 | RMB ordinary shares | 59,415,950 | ||||||||
| Central Huijin Asset Management Ltd. | 57,915,488 | RMB ordinary shares | 57,915,488 | ||||||||
| China Galaxy International Securities (Hong Kong) Co., Limited | 41,349,778 | Domestically listed foreign shares | 41,349,778 | ||||||||
| China Merchants Securities (HK) Co., Limited | 32,423,421 | Domestically listed foreign shares | 32,423,421 | ||||||||
| Shenzhen International Holdings (SZ) Limited | 29,095,000 | RMB ordinary shares | 29,095,000 | ||||||||
| VANGUARD EMERGING MARKETS STOCK INDEX FUND | 19,177,013 | Domestically listed foreign shares | 19,177,013 | ||||||||
| 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. 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 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 shareholders involving margin business (if applicable) | N/A |
Whether the top ten shareholders or top ten shareholders with un-restricted shares carried out buy back deals in the report period
□Yes √ No
IV. Changes of controlling shareholder or actual controllerChanges of controlling shareholders in the report period
□Applicable √ Not applicable
Changes of actual controller in the report period
□Applicable √ Not applicable
Section VII. Particulars about Directors, Supervisors, Senior
Executives and EmployeesI. Changes of shares held by directors, supervisors and senior executives
√ Applicable □ Not applicable
| Name | Title | Working status | The number of shares held at the beginning of the period (shares) | The number of increase of holding in the current period (shares) | The number of decrease of holding in the current period (shares) | The 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 | 2,840,365 | 1,623,065 | 2,840,365 | 1,623,065 | |||
| Wang Jian | Secretary of the Party Committee,Deputy Chairman of the Board, CEO | Currently in office | 1,771,000 | 1,012,000 | 1,771,000 | 1,012,000 | |||
| Zhu Guilong | Independent Director | Currently in office | |||||||
| Zhu Qianyu | Independent Director | Currently in office | |||||||
| Xu Nianhang | Independent Director | Currently in office | |||||||
| Zhang Jinshun | Director | Currently in office | |||||||
| Cheng Xibao | Director | Currently in office | |||||||
| Cheng Jinggang | Director | Currently in office | |||||||
| Yao Zhuanghe | Director | Currently in office | |||||||
| Li Jianghua | Chairman of the Supervisory | Currently in office |
| Board, Employee Supervisor | |||||||||
| Gao Changkun | Employee Supervisor | Currently in office | |||||||
| Meng Lili | Supervisor | Currently in office | |||||||
| Lu Wenhui | Executive Vice President | Currently in office | 2,130,273 | 1,217,298 | 2,130,273 | 1,217,298 | |||
| He Jin | Vice president | Currently in office | 1,570,800 | 897,600 | 1,570,800 | 897,600 | |||
| Yang Xinyu | Secretary of the Board | Currently in office | 2,028,831 | 1,159,332 | 2,028,831 | 1,159,332 | |||
| Zhan Weizai | Independent Director | Post leaving | |||||||
| Ye Weiqing | Director | Post leaving | |||||||
| Li Xinjun | Supervisor | Post leaving | |||||||
| Total | -- | -- | 10,341,269 | 5,909,295 | 10,341,269 | 5,909,295 |
Note: Due to the Company's failure to meet the performance conditions for unlocking restricted shares in the third release period ofthe Incentive Plan for A-share Restricted Shares in 2017, the restricted shares held by the above directors Chen Lin, Wang Jian andsenior executives Lu Wenhui, He Jin and Yang Xinyu which expected to be released from the restrictions in the third unlockingperiod could not be unlocked and were repurchased and cancelled by the Company, with a total of 4,431,974 shares.II. Changes of directors, supervisors and senior executives
√ Applicable □ Not applicable
| Name | Title | Type | Date | Reason |
| Xu Nianhang | Independent Director | Be Elected | 21 May 2020 | Election of the Board of Directors |
| Cheng Jinggang | Director | Be Elected | 21 May 2020 | Election of the Board of Directors |
| Yao Zhuanghe | Director | Be Elected | 21 May 2020 | Election of the Board of Directors |
| Meng Lili | Supervisor | Be Elected | 21 May 2020 | Election of the Board of Supervisors |
| Zhan Weizai | Independent Director | Post leaving | 21 May 2020 | Left the post when the term expired |
| Ye Weiqing | Director | Post leaving | 21 May 2020 | Left the post when the term expired |
| Li Xinjun | Supervisor | Post leaving | 21 May 2020 | Left the post when the term expired |
Section VIII.Corporate BondsDoes the company have corporate bonds that are publicly issued and listed on the stock exchange and are not due on the approvaldate of the semi-annual report or are not fully cashed when they are dueYesI.Basic information about 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 |
| CSG Holding Co., Ltd. Public issue of corporate bonds to qualified investors in 2020 (phase I) | 20 CSG 01 | 149079 | 2020-3-24 to 2020-3-25 | 2023-3-25 | 199,165 | 6% | Use simple interest to calculate the annual interest, excluding compound interest. Interest is paid once a year, principal is repaid once due, and the last installment of interest is paid together with the principal. |
| Corporate bond listing or transfer trading place | Shenzhen Stock Exchange | ||||||
| Appropriate arrangements for investors | Corporate bonds shall be publicly issued to qualified institutional investors who have opened qualified A-share securities accounts in the Shenzhen branch of China Securities Registration and Clearing Co., Ltd., in accordance with the provisions of the "Measures For The Administration Of Corporate Bond Issuance And Trading". | ||||||
| Interest payment and encashment of corporate bonds during the reporting period | The current bonds have not entered the interest - paying period. | ||||||
II. Informantion of bond trustee and credit rating institution
| Bond trustee: | |||||||
| Name | Western Securities Co., Ltd | Office adds. | Room 10000, Building 8, 319 Dongxin street, Xincheng district, Xi 'anCity, Shaanxi Province | Contact person | Lv Yue | Tel. | 010-68086722 |
| Credit ratinginstitution which tracks rating corporate bonds in the report period: | |||||||
| Name | China Chengxin International Credit Rating Co., Ltd. | Office adds. | 21 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) | The bond rating agency China Chengxin Securities Rating Co., Ltd. (hereinafter referred to as "CCXR") is a wholly-owned subsidiary ofChina Chengxin International Credit Rating Co., Ltd. (hereinafter referred to as "CCXI"). According to the notice of CCXI, on February 25, 2020, China credit international received the reply of China securities regulatory commission on the approval of China Chengxin International Credit Rating Co., Ltd. to engage in the credit rating business of the securities market (license no. [2020] 267).According to this reply, CCXIcarried out credit rating business of securities market from February 26, 2020;Credit rating business in securities market of CCXR, a wholly-owned subsidiary of CCXI, is inherited by CCXI. | ||||||
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 term(RMB 0,000) | 119,170 |
| The operation of the special account for raised fund | The operation of the special account for raised fund is in 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 bondsAccording to The Tracking Rating Report of CSG Issuing Corporate Bonds To Qualified Investors In 2020 (Phase I) issued byCCXIon June 10, 2020 ([2020] tracking 0596), the Company's subject credit rating is AA +, rating outlook is stable, and the bondscredit rating of the current period is evaluated as AA +.CCXI will conduct tracking rating during the term of validity of the bonds: it will complete the regular tracking rating of the yearwithin two months after the release of the Company's annual report, and disclose the bond tracking rating report of the previous yearwithin six months from the end of each fiscal year according to the listing rules; Issue random tracking ratings as appropriate. Therating results and other relevant information will be published on the website of China credit international (www.ccxi.com.cn) andthe website of the exchange to draw the attention of investors.
V. Trust mechanism, debt repayment plans and other debt repayment safeguards of corporation 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.I. Credit promotion measuresThe bonds are unsecured.
II. Debt repayment plan"20 CSG 01" will pay interest once a year during its duration, and the principal will be repaid once upon maturity. The interest of thelast period will be paid together with the repayment of the principal. The payment date of "20 CSG 01" is March 25 of each yearfrom 2021 to 2023, and the payment date is March 25, 2023 (in case of a statutory holiday or rest day, it will be postponed to the firsttrading day thereafter).The 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 flowgenerated by the Company’s operating activities and the bank loans. The financial structure of the company remains stable, and thestable cash inflow provides a strong guarantee for the repayment of principal and interest of the company's bonds. The repaymentplan has not changed and is consistent with the relevant commitments in the prospectus.
Ⅲ. Repayment safeguardsIn 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 thefunds for repayment, strictly implement the use of the raised funds, give full play to the role of bond trustee, set the rules forbondholders' meetings, strictly fulfill the obligation of information disclosure, so as to develop a set of safeguards to ensure thatbonds are repaid safely
VI. Information about the bond-holder meeting during the report periodThere was no bond-holder meeting of "20 CSG 01" convened in the reportperiod.VII. Information about the obligations fulfilled by the bond trustee in the reportperiodAs the bond trustee of "20 CSG 01", Western Securities Co., Ltd. performedthe duties of bond trustee in strict accordance withrelevant laws and regulations and the provisions of the "Prospectus" and "Bond Trustee Management Agreement", and continuouslypaidattention to the Company's daily production, operation and financial status, as well as the use of raised funds, operation of specialaccounts and repayment of principal and interest in order to safeguard the legitimate rights and interests of bondholders. There wasnoconflict of interest when the trustee performsits duties.
VIII. Main accounting data and financial indicators of the company up to the end of the report period andthe end of the previous year (or the same period as the report period and the previous year)
RMB 0,000
| Item | At the end of the report period | At the end of the previous year | Increase and decrease at the end of the report compared with the end of the previous year |
| Current ratio | 97% | 74% | 23% |
| Asset-liability ratio | 48% | 46% | 2% |
| Quick ratio | 80% | 61% | 19% |
| The report period | The same period of the previous year | Increase and decrease in the report period over the same period of last year | |
| EBITDA interest coverage ratio | 6.97 | 6.31 | 10.46% |
| Loan repayment rate | 100% | 100% | - |
| Interest coverage ratio | 100% | 100% | - |
The main reasons for the above accounting data and financial indicators to change by more than 30% year on year
□ Applicable √ Not applicable
IX. Overdue debts of the company
□ Applicable √ Not applicable
The Company had no overdue debts.
X. Payment of principle and interest for other bonds and debt financing instruments during the reportperiodOn May 4, 2020, the Company paid the second installment of the first term medium-term note of 2018 with an annual interest rate of7% and a total amount of RMB 800 million issued on May 4, 2018.
XI.Information about of bank credit and use, as well as repayment of bank loans during the report period
The Company's credit status was good during the report period, and it established a long-term and stable credit business relationshipwith banking institutions. As of June 30, 2020, the Company had obtained RMB 12.633 billion of bank credit, with a quota of RMB
3.192 billion and an available quota of RMB 9.441 billion.
XII. Information about fulfillment of the stipulations or commitments specified in the Prospectus of theissuance of the bonds during the report period
The Company strictly abided by the relevant provisions in the prospectus of "20 CSG 01" and fulfilled relevant commitments.
XIII. Major matters occurring during the report periodOn April 8, 2020, the Company disclosed the ―Announcement on Cumulative New loans in 2020 of CSG on the website of ShenzhenStock Exchange. The above-mentioned new loans are required by the Company's business development, conform to the provisions ofrelevant laws and regulations, belong to the normal business activities of the Company, and will not have a significant adverse impacton the Company's production and operation and debt paying ability.The bond trusteeWestern Securities Co., Ltd. disclosed theInterim Report on entrusted management affairs of CSG Issuing Corporate Bonds ToQualified Investors In 2020 (Phase I) onthewebsite of Shenzhen Stock Exchange for the aboved matters simultaneously.XIV.Whether there is a guarantor of corporate bonds
□ Yes √ No
Section IX. Financial Report(I) Auditors’ ReportWhether the Semi-annual Report has been audited or not
□ Yes √ No
The Company's Semi-annual Report has not been audited.(II) Financial StatementsAll figures in the Notes to the Financial Statements are in RMB.
1. Consolidated Balance Sheet
Prepared by CSG Holding Co., Ltd.
June 30, 2020
Unit: RMB
| Item | June 30, 2020 | December 31,2019 |
| Current assets | ||
| Cash at bank and on hand | 3,074,973,644 | 1,986,980,418 |
| Notes receivable | 230,044,196 | 297,023,380 |
| Accounts receivable | 780,968,446 | 649,681,177 |
| Receivables financing | 303,344,206 | 258,296,826 |
| Advances to suppliers | 119,645,053 | 78,196,027 |
| Other receivables | 201,571,781 | 202,854,864 |
| Inventories | 1,036,632,734 | 812,321,690 |
| Other current assets | 151,162,747 | 447,995,931 |
| Total current assets | 5,898,342,807 | 4,733,350,313 |
| Non-current assets | ||
| Fixed assets | 8,482,459,154 | 9,783,037,301 |
| Construction in progress | 3,116,834,966 | 1,902,140,035 |
| Intangible assets | 1,107,585,475 | 1,044,826,287 |
| Development expenditure | 109,312,689 | 85,240,356 |
| Goodwill | 315,097,756 | 315,097,756 |
| Long-term prepaid expenses | 11,110,889 | 11,351,431 |
| Deferred tax assets | 219,430,452 | 205,792,587 |
| Other non-current assets | 104,138,519 | 120,399,893 |
| Total non-current assets | 13,465,969,900 | 13,467,885,646 |
| Totalassets | 19,364,312,707 | 18,201,235,959 |
| Current liabilities | ||
| Short-term borrowings | 1,604,423,055 | 2,240,969,137 |
| Notes payable | 187,639,865 | 232,063,968 |
| Accounts payable | 1,267,881,055 | 1,100,531,779 |
| Advances from customers | 292,803,811 | |
| Contract liabilities | 269,082,855 | |
| Employee benefits payable | 230,856,876 | 337,866,246 |
| Taxes payable | 135,641,333 | 115,425,044 |
| Other payables | 270,701,826 | 351,374,775 |
| Of which: interest payable | 108,653,849 | 73,251,086 |
| Dividend payable | 2,985,563 | |
| Current portion of non-current liabilities | 2,092,839,388 | 1,712,456,928 |
| Other current liabilities | 300,000 | 300,000 |
| Total current liabilities | 6,059,366,253 | 6,383,791,688 |
| Non-current liabilities | ||
| Long-term borrowings | 675,200,269 | 1,320,225,000 |
| Bonds payable | 1,991,652,870 | |
| Long-term payable | 53,006,500 | 87,240,529 |
| Deferred income | 499,807,166 | 513,925,557 |
| Deferred tax liabilities | 32,958,226 | 30,197,657 |
| Total non-current liabilities | 3,252,625,031 | 1,951,588,743 |
| Total liabilities | 9,311,991,284 | 8,335,380,431 |
| Shareholders’ equity | ||
| Share capital | 3,070,692,107 | 3,106,915,005 |
| Capital surplus | 596,997,085 | 683,219,358 |
| Less: Treasury shares | 118,066,397 | |
| Other comprehensive income | 7,932,636 | 6,565,864 |
| Special reserve | 10,666,738 | 11,102,921 |
| Surplus reserve | 946,251,286 | 946,251,286 |
| Undistributed profits | 5,039,104,679 | 4,859,600,841 |
| Total equity attributable to shareholders of parent company | 9,671,644,531 | 9,495,588,878 |
| Minority shareholders' equity | 380,676,892 | 370,266,650 |
| Total shareholders' equity | 10,052,321,423 | 9,865,855,528 |
| Totalliabilities and shareholders' equity | 19,364,312,707 | 18,201,235,959 |
Legal Representative:Chen Lin Principal in charge of accounting:Wang Jian Principal of the financial department:Wang Wenxin
2. Balance Sheet of the Parent Company
Unit: RMB
| Item | June 30, 2020 | December 31,2019 |
| Current assets | ||
| Cash at bank and on hand | 2,611,477,480 | 1,560,798,731 |
| Advances to suppliers | 3,606,751 | 1,799,222 |
| Other receivables | 3,736,236,883 | 3,179,500,967 |
| Other current assets | 300,000,000 | |
| Total current assets | 6,351,321,114 | 5,042,098,920 |
| Non-current assets | ||
| Long-term receivables | 1,200,000,000 | 1,200,000,000 |
| Long-term equity investments | 5,267,965,574 | 5,079,465,574 |
| Fixed assets | 19,242,074 | 19,550,442 |
| Intangible assets | 217,284 | 370,484 |
| Other non-current assets | 5,388,068 | 1,407,535 |
| Total non-current assets | 6,492,813,000 | 6,300,794,035 |
| Total assets | 12,844,134,114 | 11,342,892,955 |
| Current liabilities | ||
| Short-term borrowings | 1,018,000,000 | 1,687,000,000 |
| Notes payable | 170,000,000 | |
| Accounts payable | 628,828 | 236,346 |
| Employee benefits payable | 22,680,306 | 53,040,982 |
| Taxes payable | 527,877 | 2,901,358 |
| Other payables | 1,472,770,969 | 1,643,156,452 |
| Of which: interest payable | 48,504,355 | 41,186,139 |
| Dividend payable | 2,985,563 | |
| Current portion of non-current liabilities | 2,000,000,000 | 1,200,000,000 |
| Total current liabilities | 4,514,607,980 | 4,756,335,138 |
| Non-current liabilities | ||
| Long-term borrowings | 500,000,000 | 1,130,000,000 |
| Bonds payable | 1,991,652,870 | |
| Deferred income | 181,188,683 | 182,386,537 |
| Total non-current liabilities | 2,672,841,553 | 1,312,386,537 |
| Total liabilities | 7,187,449,533 | 6,068,721,675 |
| Shareholders’ equity | ||
| Share capital | 3,070,692,107 | 3,106,915,005 |
| Capital surplus | 741,824,399 | 828,046,672 |
| Less:Treasury shares | 118,066,397 | |
| Surplus reserve | 960,796,646 | 960,796,646 |
| Undistributed profits | 883,371,429 | 496,479,354 |
| Total shareholders' equity | 5,656,684,581 | 5,274,171,280 |
| Totalliabilities and shareholders' equity | 12,844,134,114 | 11,342,892,955 |
3. Consolidated Income Statement
Unit: RMB
| Item | Half year of 2020 | Half year of 2019 |
| I. Total revenue | 4,424,221,349 | 4,888,237,578 |
| Of which:Business income | 4,424,221,349 | 4,888,237,578 |
| II. Total business cost | 3,967,771,208 | 4,526,773,571 |
| Of which:Business cost | 3,159,567,031 | 3,671,376,825 |
| Tax and surcharge | 52,338,392 | 56,687,997 |
| Sales expenses | 161,639,534 | 172,503,399 |
| Administrative expenses | 317,419,407 | 292,862,355 |
| R&D expenses | 145,063,647 | 174,276,136 |
| Financial expenses | 131,743,197 | 159,066,859 |
| Of which: interest expense | 152,178,964 | 171,031,605 |
| Interest income | 24,931,363 | 14,923,375 |
| Plus: Other income | 48,009,326 | 107,755,413 |
| Credit impairment loss (―- ―for loss) | -2,961,920 | |
| Asset impairment loss (―- ―for loss) | 154,053 | -3,765,670 |
| Income on disposal assets (―- ―for loss) | -342,005 | 370,969 |
| III. Operational profit (―- ―for loss) | 501,309,595 | 465,824,719 |
| Plus: non-operational income | 2,218,131 | 3,666,315 |
| Less: non-operational expenditure | 17,535,553 | 6,293,227 |
| IV. Total profit (―- ―for loss) | 485,992,173 | 463,197,807 |
| Less: Income tax expenses | 84,115,208 | 76,458,740 |
| V. Net profit (―- ―for net loss) | 401,876,965 | 386,739,067 |
| (I) Classification by business continuity | ||
| 1. Net profit from continuing operations (―-‖ for net loss) | 401,876,965 | 386,739,067 |
| (II) Classification by ownership | ||
| 1. Equity attributable to shareholders of parent company | 391,466,723 | 377,342,401 |
| 2.Minority shareholder gains and losses | 10,410,242 | 9,396,666 |
| VI. Other comprehensive income net after tax | 1,366,772 | 280,161 |
| Other comprehensive income net after tax attributable to shareholders of parent company | 1,366,772 | 280,161 |
| (II) Other comprehensive income items which will be reclassified subsequently into profit and loss | 1,366,772 | 280,161 |
| 1.Differences on translation of foreign currency financial statements | 1,366,772 | 280,161 |
| VII. Total comprehensive income | 403,243,737 | 387,019,228 |
| Total comprehensive income attributable to shareholders of parent company | 392,833,495 | 377,622,562 |
| Total comprehensive income attributable to minority shareholders | 10,410,242 | 9,396,666 |
| VIII. Earnings per share: | ||
| (I) Basic earnings per share | 0.13 | 0.12 |
| (II) Diluted earnings per share | 0.13 | 0.12 |
Legal Representative:Chen Lin Principal in charge of accounting:Wang Jian Principal of the financial department:Wang Wenxin
4. Income Statement of the Parent Company
Unit: RMB
| Item | Half year of 2020 | Half year of 2019 |
| I. Revenue | 37,484,754 | 38,156,685 |
| Less: Business cost | ||
| Tax and surcharge | 1,021,570 | 484,868 |
| Sales expenses | ||
| Administrative expenses | 59,530,745 | 63,631,618 |
| R & D expenses | 9,250 | 355,838 |
| Financial expenses | 79,503,361 | 64,544,835 |
| Of which: interest expense | 100,457,503 | 74,386,747 |
| Interest income | 22,683,049 | 12,738,082 |
| Plus: Other income | 1,955,221 | 1,466,247 |
| Investment income(―- ―for loss) | 703,591,508 | 390,105,325 |
| Credit impairment loss (―- ―for loss) | 6,972 | |
| Asset impairment loss (―- ―for loss) | 94,314 | |
| Income on disposal assets (―- ―for loss) | 981 | |
| II. Operating profit | 602,974,510 | 300,805,412 |
| Add: Non-operating revenue | 2,403,225 | |
| Less: Non-operating expenses | 4,119,550 | 3,859,460 |
| III. Total profit (―- ―for loss) | 598,854,960 | 299,349,177 |
| Less: Income tax (expenses)/revenue | ||
| IV. Net profit (―- ―for loss) | 598,854,960 | 299,349,177 |
| (I) Net profit for continuing operations(―- ―for loss) | 598,854,960 | 299,349,177 |
| V. Other comprehensive income net after tax | ||
| VI. Total comprehensive income | 598,854,960 | 299,349,177 |
| VII. Earnings per share | ||
| (I) Basic earnings per share | ||
| (II) Diluted earnings per share |
5. Consolidated Cash Flow Statement
Unit: RMB
| Item | Half year of 2020 | Half year of 2019 |
| I. Cash flows from operating activities | ||
| Cash received from sales of goods or rendering of services | 4,739,003,316 | 5,267,136,350 |
| Refund of taxes and surcharges | 11,866,382 | 7,189,735 |
| Receive other cash related to operating activities | 69,696,304 | 69,328,688 |
| Subtotal of cash inflow from operating activities | 4,820,566,002 | 5,343,654,773 |
| Cash paid for goods and services | 2,767,721,923 | 3,243,706,052 |
| Cash paid to and on behalf of employees | 708,599,327 | 706,947,717 |
| Payments of taxes and surcharges | 284,726,645 | 310,470,632 |
| Pay other cash related to operating activities | 279,873,718 | 314,547,907 |
| Subtotal of cash outflow from operating activities | 4,040,921,613 | 4,575,672,308 |
| Net cash flows from/(used in) operating activities | 779,644,389 | 767,982,465 |
| II. Cash flows from investing activities | ||
| Cash received from investment recovery | ||
| Cash received from investment income | ||
| Net cash received from disposal of fixed assets, intangible assets and other long-term assets | 723,823 | 355,765 |
| Cash received relating to other investing activities | 328,067,104 | 36,323,006 |
| Subtotal of cash inflows from investing activities | 328,790,927 | 36,678,771 |
| Cash paid to acquire fixed assets, intangible assets and other long-term assets | 436,165,155 | 283,862,176 |
| Cash paid relating to other investing activities | 21,848,237 | 44,089,887 |
| Subtotal of cash outflows from investing activities | 458,013,392 | 327,952,063 |
| Net cash flows (used in)/from investing activities | -129,222,465 | -291,273,292 |
| III. Cash flows from financing activities | ||
| Cash received from borrowings | 1,243,981,261 | 1,498,543,308 |
| Cash received from bond issuance | 1,991,680,000 | |
| Cash received relating to other financing activities | 298,227 | 500,154,376 |
| Subtotal of cash inflows from financing activities | 3,235,959,488 | 1,998,697,684 |
| Cash repayments of borrowings | 1,827,110,966 | 1,833,149,550 |
| Cash payments for interest expenses and distribution of dividends or profits | 336,678,849 | 314,316,388 |
| Cash payments relating to other financing activities | 483,358,139 | 808,767,638 |
| Subtotal of cash outflows from financing activities | 2,647,147,954 | 2,956,233,576 |
| Net cash flows (used in)/from financing activities | 588,811,534 | -957,535,892 |
| IV. Effect of foreign exchange rate changes on cash and cash equivalents | 587,483 | -59,328 |
| V. Net increase/(decrease) in cash and cash equivalents | 1,239,820,941 | -480,886,047 |
| Add: Cash and cash equivalents at beginning of current period | 1,831,835,030 | 2,225,126,913 |
| VI. Cash and cash equivalents at end of current period | 3,071,655,971 | 1,744,240,866 |
6. Cash Flow Statement of theParent Company
Unit: RMB
| Item | Half year of 2020 | Half year of 2019 |
| I. Cash flows from operating activities | ||
| Refund of taxes and surcharges | 613,917 |
| Cash received relating to other operating activities | 29,744,731 | 22,806,175 |
| Sub-total of cash inflows | 30,358,648 | 22,806,175 |
| Cash paid to and on behalf of employees | 79,870,460 | 69,731,706 |
| Payments of taxes and surcharges | 7,235,926 | 2,061,399 |
| Cash paid relating to other operating activities | 13,995,974 | 14,959,674 |
| Sub-total of cash outflows | 101,102,360 | 86,752,779 |
| Net cash flows from/(used in) operating activities | -70,743,712 | -63,946,604 |
| II. Cash flows from investing activities | ||
| Net cash received from disposal of fixed assets, intangible assets and other long-term assets | 703,591,508 | |
| Sub-total of cash inflows | 1,000 | |
| Other cash received related to investment activities | 300,000,000 | |
| Subtotal of cash inflow from investment activities | 1,003,592,508 | |
| Cash paid to acquire fixed assets, intangible assets and other long-term assets | 5,332,761 | 2,887,626 |
| Cash paid for investing activities | 188,500,000 | 10,000,000 |
| Sub-total of cash outflows | 193,832,761 | 12,887,626 |
| Net cash flows (used in)/from investing activities | 809,759,747 | -12,887,626 |
| III. Cash flows from financing activities | ||
| Cash received from borrowings | 832,999,801 | 1,300,000,000 |
| Cash received relating to other financing activities | 1,991,680,000 | |
| Sub-total of cash inflows | 2,824,679,801 | 1,300,000,000 |
| Cash repayments of borrowings | 1,331,999,801 | 1,250,000,000 |
| Cash payments for interest expenses and distribution of dividends or profits | 308,585,809 | 242,330,883 |
| Other cash paid relating to financing activities | 722,080,591 | 604,806,391 |
| Subtotal of cash outflows from financing activities | 2,362,666,201 | 2,097,137,274 |
| Net cash flows (used in)/from financing activities | 462,013,600 | -797,137,274 |
| IV. Effect of foreign exchange rate changes on cash and cash equivalents | 5,810 | 1,963 |
| V.Net increase/(decrease) in cash and cash equivalents | 1,201,035,445 | -873,969,541 |
| Add: Cash and cash equivalents at beginning of current period | 1,407,215,863 | 1,699,514,334 |
| VI. Cash and cash equivalents at end of current period | 2,608,251,308 | 825,544,793 |
7. Consolidated Statement of Changes in Owners’ Equity
Amount of the current period
Unit: RMB
| Item | Half year of 2020 | |||||||||
| Owners’ Equity Attributable to the Parent Company | Minority shareholders' equity | Total shareholders' equity | ||||||||
| Share capital | Capital surplus | Less: treasury share | Other comprehensive income | Special reserves | Surplus reserve | Undistributed profits | Subtotal | |||
| I. Balance at the end of the previous year | 3,106,915,005 | 683,219,358 | 118,066,397 | 6,565,864 | 11,102,921 | 946,251,286 | 4,859,600,841 | 9,495,588,878 | 370,266,650 | 9,865,855,528 |
| II. Balance at the beginning of current year | 3,106,915,005 | 683,219,358 | 118,066,397 | 6,565,864 | 11,102,921 | 946,251,286 | 4,859,600,841 | 9,495,588,878 | 370,266,650 | 9,865,855,528 |
| III. Amount of change in current term(―- ―for decrease) | -36,222,898 | -86,222,273 | -118,066,397 | 1,366,772 | -436,183 | 179,503,838 | 176,055,653 | 10,410,242 | 186,465,895 | |
| (I) Total amount of the comprehensive income | 1,366,772 | 391,466,723 | 392,833,495 | 10,410,242 | 403,243,737 | |||||
| (II) Capital paid in and reduced by owners | -36,222,898 | -86,222,273 | -118,066,397 | -4,378,774 | -4,378,774 | |||||
| 1. The amount of share-based payment included in | -36,222,898 | -86,222,273 | -118,066,397 | -4,378,774 | -4,378,774 | |||||
| owner's equity | ||||||||||
| 2. Others | ||||||||||
| (III) Profit distribution | -211,962,885 | -211,962,885 | -211,962,885 | |||||||
| 1. Appropriations to owners (or shareholders) | -211,962,885 | -211,962,885 | -211,962,885 | |||||||
| (IV) Internal carry-forward of owners’ equity | ||||||||||
| (V) Specific reserve | 436,183 | 436,183 | 436,183 | |||||||
| 2. Used in the period | 436,183 | 436,183 | 436,183 | |||||||
| (VI) Others | ||||||||||
| IV. Balance at the end of the period | 3,070,692,107 | 596,997,085 | 7,932,636 | 10,666,738 | 946,251,286 | 5,039,104,679 | 9,671,644,531 | 380,676,892 | 10,052,321,423 |
Amount of the previous period
Unit: RMB
| Item | Half year of 2019 | |||||||||
| Owners’ Equity Attributable to the Parent Company | Minority shareholders' equity | Total shareholders' equity | ||||||||
| Share capital | Capital surplus | Less: treasury share | Other comprehensive income | Special reserves | Surplus reserve | Undistributed profits | Subtotal | |||
| I. Balance at the end of the previous year | 2,863,277,201 | 1,095,339,421 | 277,180,983 | 5,080,234 | 6,068,600 | 924,305,375 | 4,486,264,723 | 9,103,154,571 | 346,277,891 | 9,449,432,462 |
| II. Balance at the | 2,863,277,201 | 1,095,339,421 | 277,180,983 | 5,080,234 | 6,068,600 | 924,305,375 | 4,486,264,723 | 9,103,154,571 | 346,277,891 | 9,449,432,462 |
| beginning of current year | ||||||||||
| III. Amount of change in current term(―- ―for decrease) | 244,918,962 | -371,521,658 | -139,903,420 | 280,161 | 2,166,651 | 236,135,366 | 251,882,902 | 9,396,666 | 261,279,568 | |
| (I) Total amount of the comprehensive income | 280,161 | 377,342,401 | 377,622,562 | 9,396,666 | 387,019,228 | |||||
| (II) Capital paid in and reduced by owners | -37,644,324 | -88,958,372 | -139,903,420 | 13,300,724 | 13,300,724 | |||||
| 1. The amount of share-based payment included in owner's equity | -37,644,324 | -88,958,372 | -139,903,420 | 13,300,724 | 13,300,724 | |||||
| 2. Others | ||||||||||
| (III) Profit distribution | -141,207,035 | -141,207,035 | -141,207,035 | |||||||
| 1. Appropriations to surplus reserves | ||||||||||
| 2. Distribution to the owner (or shareholder) | -141,207,035 | -141,207,035 | -141,207,035 | |||||||
| (IV) Internal carry-forward of owners’ equity | 282,563,286 | -282,563,286 | ||||||||
| 1.Capital reserve transferred to capital (or share capital) | 282,563,286 | -282,563,286 | ||||||||
| (V) Specific reserve | 2,166,651 | 2,166,651 | 2,166,651 | |||||||
| 1. Withdrawn for the | 3,646,882 | 3,646,882 | 3,646,882 |
| period | ||||||||||
| 2. Used in the period | 1,480,231 | 1,480,231 | 1,480,231 | |||||||
| (VI) Others | ||||||||||
| IV. Balance at the end of the period | 3,108,196,163 | 723,817,763 | 137,277,563 | 5,360,395 | 8,235,251 | 924,305,375 | 4,722,400,089 | 9,355,037,473 | 355,674,557 | 9,710,712,030 |
8. Statement of changes in owner's equity of the parent company
Amount of the current period
Unit: RMB
| Item | Half year of 2020 | |||||
| Share capital | Capital surplus | Less: treasury share | Surplus reserve | Undistributed profits | Total shareholders' equity | |
| I. Balance at the end of the previous year | 3,106,915,005 | 828,046,672 | 118,066,397 | 960,796,646 | 496,479,354 | 5,274,171,280 |
| II. Balance at the beginning of current year | 3,106,915,005 | 828,046,672 | 118,066,397 | 960,796,646 | 496,479,354 | 5,274,171,280 |
| III. Amount of change in current term(―- ―for decrease) | -36,222,898 | -86,222,273 | -118,066,397 | 386,892,075 | 382,513,301 | |
| (I) Total amount of the comprehensive income | 598,854,960 | 598,854,960 | ||||
| (II) Capital paid in and reduced by owners | -36,222,898 | -86,222,273 | -118,066,397 | -4,378,774 | ||
| 1. The amount of share-based payment included in owner's equity | -36,222,898 | -86,222,273 | -118,066,397 | -4,378,774 | ||
| (III) Profit distribution | -211,962,885 | -211,962,885 | ||||
| 1. Appropriations to owners (or shareholders) | -211,962,885 | -211,962,885 | ||||
| (IV) Internal carry-forward of owners’ equity | ||||||
| (V) Special reserve | ||||||
| IV. Balance at the end of the period | 3,070,692,107 | 741,824,399 | 960,796,646 | 883,371,429 | 5,656,684,581 | |
Amount of the previous period
Unit: RMB
| Item | Half year of 2019 | |||||
| Share capital | Capital surplus | Less: treasury share | Surplus reserve | Undistributed profits | Total shareholders' equity | |
| I. Balance at the end of the previous year | 2,863,277,201 | 1,240,166,735 | 277,180,983 | 938,850,735 | 440,114,948 | 5,205,228,636 |
| II. Balance at the beginning of current year | 2,863,277,201 | 1,240,166,735 | 277,180,983 | 938,850,735 | 440,114,948 | 5,205,228,636 |
| III. Amount of change in current term(―- ―for decrease) | 244,918,962 | -371,521,658 | -139,903,420 | 158,142,142 | 171,442,866 | |
| (I) Total amount of the comprehensive income | 299,349,177 | 299,349,177 | ||||
| (II) Capital paid in and reduced by owners | -37,644,324 | -88,958,372 | -139,903,420 | 13,300,724 | ||
| 1.The amount of share-based payment included in owner's equity | -37,644,324 | -88,958,372 | -139,903,420 | 13,300,724 | ||
| (III) Profit distribution | -141,207,035 | -141,207,035 | ||||
| 1. Appropriations to owners (or shareholders) | -141,207,035 | -141,207,035 | ||||
| (IV) Internal carry-forward of owners’ equity | 282,563,286 | -282,563,286 | ||||
| 1.Capital reserve transferred to capital (or share capital) | 282,563,286 | -282,563,286 | ||||
| (V) Special reserve | ||||||
| (VI) Others | ||||||
| IV. Balance at the end of the period | 3,108,196,163 | 868,645,077 | 137,277,563 | 938,850,735 | 598,257,090 | 5,376,671,502 |
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) andGuangdong 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 headquarters is located in Shenzhen, Guangdong Province of thePeople's Republic of China. The Company issued RMB-denominated ordinary shares (―A-share‖) and foreign shares (―B-share‖)publicly in October 1991 and January 1992 respectively, and was listed on Shenzhen Stock Exchange on February 1992. As at June30, 2019, the registered capital was RMB 3,070,692,107, with nominal value of RMB 1 per share.
The Company and its subsidiaries (collectively referred to as the ―Group‖) are mainly engaged in the manufacture and sales of flatglass, specialized glass, engineering glass, energy saving glass, silicon related materials, polysilicon and solar components andelectronic-grade display device glass and the construction and operation of photovoltaic plant etc.
The financial statements were authorized for issue by the Board of Directors on August 20, 2020.
Details on the major subsidiaries included in the consolidated scope in current year were stated in the Note.
IV. Basis of the preparation of financial statements
1. Basis of preparation
The financial statements are prepared in accordance with the Accounting Standards for Business Enterprises - Basic Standard, andthe specific accounting standards and other relevant regulations issued by the Ministry of Finance on 15 February 2006 and insubsequent periods (hereafter collectively referred to as ―the Accounting Standard for Business Enterprises‖ or ―CAS‖), andInformation Disclosure Rule No. 15 for Companies with Public Traded Securities - Financial Reporting General Provision issued byChina Security Regulatory Commission.
2. Going concern
As at June 30, 2020, the Group current liabilities exceed current assets about RMB161 million and committed capital expenditure ofabout RMB 550million. The directors of the Company have made an assessment that the Group has been in continuous business formany years and expects to continue to generate sufficient cash flow from operating activities in the next 12 months.From January toJune 2020, the net cash inflow from operation activities is approximately RMB 780 million; and the Group has maintained goodrelationship with banks, so the Group has been able to successfully renew the bank facilities upon the expiry. As at June 30, 2020, theGroup had unutilised banking facilities of approximately RMB 9.441 billion, among which long-term banking facilities were aboutRMB 1.475billion. In addition, the shareholder of the Group or other appointed related parties are willing to provide the Group withRMB 2 billion interest-free loan. The Group also has other sources of financing, such as issuing short-term bonds, ultra-short-termfinancing bonds, medium-term notesand corporate bonds. The directors of the Company believe that the above credit line andshareholder support are sufficient to meet the funding needs of the Group for repayment of debts and capital commitments. Therefore,the financial statements for the report period will continue to be prepared on a going concern basis.
V. Significant accounting policies and accounting estimatesThe Group determines specific accounting policies and accounting estimates based on the characteristics of production and operation,which are mainly reflected in the measurement of expected credit losses of receivables, the valuation method of inventories, fixedasset depreciation and intangible asset amortization, judgment standards for capitalization of development expenditures, incomeconfirmation time, etc.
Please see the Note for the key judgements adopted by the Group in applying important accounting policies.
1. Statement of compliance with the Accounting Standards for Business EnterprisesThe financial statements of the Company for the first half year of 2020 truly and completely present the financial position as of June30, 2020 and the operating results, cash flows and other information for the first half year of 2020 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 treatment method of business combination under common control and not under commoncontrol(a)Business combinations involving entities under common control
The consideration paid and net assets obtained by the absorbing party in a business combination are measured at book value. Thedifference between book value of the net assets obtained from the combination and book value of the consideration paid for thecombination is treated as an adjustment to capital surplus (share premium). If the capital surplus (share premium) is not sufficient toabsorb the difference, the remaining balance is adjusted against retained earnings. Costs directly attributable to the combination areincluded in profit or loss in the period in which they are incurred. Transaction costs associated with the issue of equity or debtsecurities for the business combination are included in the initially recognised amounts of the equity 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 fair value atthe acquisition date. Where the cost of the combination exceeds the acquirer’s interest in the fair value of the acquiree’s identifiablenet assets, the difference is recognised as goodwill; where the cost of combination is lower than the acquirer’s interest in the fairvalue of the acquiree’s identifiable net assets, the difference is recognised in profit or loss for the current period. Costs directly
attributable to the combination are included in profit or loss in the period in which they are incurred. Transaction costs associatedwith the issue of equity or debt securities for the business combination are included in the initially recognised amounts of the equityor debt securities.
6. 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 on which the Group obtains control and are de-consolidated from the date that suchcontrol ceases. For a subsidiary that is acquired in a business combination involving enterprises under common control, it is includedin the consolidated financial statements from the date when it, together with the Company, comes under common control of theultimate controlling party. The portion of the net profits realised before the combination date presented separately in the consolidatedincome statement.
In preparing the consolidated financial statements, where 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 andthe accounting period of the Company. For subsidiaries acquired from business combinations involving enterprises not undercommon control, the individual financial statements of the subsidiaries are adjusted based on the fair value of the identifiable netassets at the acquisition date.
All significant intra-group balances, transactions and unrealised profits are eliminated in the consolidated financial statements. Theportion of subsidiaries’ equity and the portion of a subsidiaries’ net profits and losses and comprehensive incomes for the period notattributable to Company are recognised as minority interests and presented separately in the consolidated financial statements underequity, net profits and total comprehensive income respectively. Unrealised profits and losses resulting from the sales of assets by theCompany to its subsidiaries are fully eliminated against net profit attributable to shareholders of the parent company. Unrealisedprofits and losses resulting from the sales of assets by a subsidiary to the Company are eliminated and allocated between net profitattributable to shareholders of the parent company and non-controlling interests in accordance with the allocation proportion of theparent company in the subsidiary. Unrealised profits and losses resulting from the sales of assets by one subsidiary to another areeliminated and allocated between net profit attributable to shareholders of the parent company and non-controlling interests inaccordance with the allocation proportion of the parent in the subsidiary.
After the control over the subsidiary has been gained, whole or partial minority equities of the subsidiary owned by minorityshareholders are acquired from the subsidiary’s minority shareholders. In the consolidated financial statements, the subsidiary's assetsand liabilities are reflected with amount based on continuous calculation starting from the acquisition date or consolidation date.Capital surplus is adjusted according to the difference between newly increased long-term equity investment arising from acquisitionof minority equity and the share of net assets calculated based on current shareholding ratio that the parent company is entitled to.The share is subject to continuous calculation starting from the acquisition date or consolidation date. If the capital surplus (capitalpremium or share capital premium) is not sufficient to absorb the difference, the remaining balance is adjusted against retainedearnings.
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. Criteria for determining cash and cash equivalents
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 transaction
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 rateson the balance sheet date. Exchange differences arising from these translations are recognised in profit or loss for the current period,except for those attributable to foreign currency borrowings that have been taken out specifically for the acquisition or constructionof qualifying assets, which are capitalised as part of the cost of those assets. Non-monetary items denominated in foreign currenciesthat are measured at historical costs are translated at the balance sheet date using the spot exchange rates at the date of thetransactions. The effect of 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 balancesheet date. Among the shareholders’ equity items, the items other than ―undistributed profits‖ are translated at the spot exchange ratesof the transaction dates. The income and expense items in the income statements of overseas operations are translated at the spotexchange rates of the transaction dates. The differences arising from the above translation are presented separately in the shareholders’equity. The cash flows of overseas operations are translated at the spot exchange rates on the dates of the cash flows. The effect ofexchange rate changes on cash is presented separately in the cash flow statement.
9. Financial instrument
A financial instrument is a contract that forms a financial asset of one party and forms a financial liability or equity instrument of theother party. Afinancialassetorafinancialliabilityisrecognizedwhen the Group becomes a party to the contractual provisions of theinstrument.
(a)Financial assets
(i)Classification and measurement
According to the business model of the financial assets under management and the characteristics of the contractual cash flow of thefinancial assets, the Company divides the financial assets into the following three categories: (1) Financial assets measured atamortized cost; (2) Financial assets measured at fair value through other comprehensive income; (3) Financial assets at fair valuethrough profit or loss.
The financial assets are measured at fair value at initial recognition.Related transaction costs that are attributable to the acquisition ofthe financial assets are included in the initially recognised amounts, except for the financial assets at fair value through profit or loss,
the related transaction costs of which are recognized directly in profit or loss for the current period. Accounts receivable or notesreceivable arising from sales of products or rendering of services (excluding or without regard to significant financing components)are initially recognized at the consideration that is entitled to be charged by the Group as expected.
Debt instruments
The debt instruments held by the Group refer to the instruments that meet the definition of financial liabilities from the perspective ofthe issuer, and are measured in the following three ways.
Measured at amortised cost:
The objective of the Group's business model is to hold the financial assets to collect the contractual cashflows, and the contractualcashflow characteristics are consistent with a basic lending arrangement, which gives rise on specified dates to the contractual cashflows that are solely payments of principal and interest on the principal amount outstanding. The interest income of such financialassets is recognised using the effective interest method.Such financial assets mainly comprise cash at bank and onhand, placementswith and loans to banks and other financial institutions measured at amortised cost, notes receivable, accounts receivable, factoringreceivables, loans and advances,other receivables and long-term receivables.Long-termreceivables that are due within one year(inclusive) as from the balance sheet date are included in the current portion of non-current assets.
Measuredat fair value through other comprehensive income:
The objective of the Group's business model is to hold the financial assets to collect the contractualcash flows and selling as target,andthecontractualcashflowcharacteristicsareconsistentwithabasiclendingarrangement.Such financial assets are measured at fair valueand their changes are included in other comprehensive income, but impairment losses or gains, exchange gains and losses, andinterest income calculated by the effective interest rate method are all included in the current profit and loss.Such financial assetsmainly comprisereceivable financing and other financial debt investment.Other financial debt investments that are due within oneyear (inclusive) as from the balance sheet date are included in the current portion as other current assets.
Measured at fair value through profit or loss:
Debt instruments held by the Group that are not divided into those atamortised cost or those measured at fair value through othercomprehensive income, are measured at fair value through profit or loss and included in financial assets held for trading. At initialrecognition, the Group designates a portion of financial assets as at fair value through profit or loss to eliminate or significantlyreduce an accounting mismatch. Financial assets that are due with in one year (inclusive) as from the balance sheet date and areexpected to be held over one year are included in other non-current financial assets.
Equity instruments
Investments in equity instruments, over which the Group has no control, joint control or significant influence, aremeasured at fairvalue through profit or loss under financial assets held for trading; investments in equity instruments expected to be held over oneyear as from the balance sheet date are included in other non-current financial assets.
In addition, a portion of certain investments in equity instruments not held for trading are designated as financial assets at fair valuethrough other comprehensive income under other investments in equity instruments. The relevant dividend income of such financial
assets is recognised in profit or loss for the current period.
(ii)ImpairmentThe Group confirms the loss provision based on expected credit losses for financial assets measured at amortised cost.
Giving consideration to reasonable and supportable information on past events, current conditions and forecasts of future economicconditions, as well as the default risk weight, the expected credit loss was confirmed.
As at each balance sheet date, the expected credit losses of financial instruments at different stages are measured respectively.12-month ECL provision is recognized for financial instruments in Stage1that have not had a significant increase in credit risk sinceinitial recognition; lifetime ECL provision is recognized for financial instruments in Stage2 that have had a significant increase incredit risk yet without credit impairment since initial recognition; and lifetime ECL provision is recognized for financial instrumentsin Stage3 that have had credit impairment since initial recognition.
For the financial instruments with lower credit risk on the balance sheet date, the Group assumes there is no significant increase incredit risks in ceinitial recognition and recognizes the 12-month ECL provision.
For the financial instruments in Stage 1, Stage 2 and with lower credit risk, the Group calculates the interest income by applying theeffective interest rate to the gross carrying amount (before deduction of the impairment provision). For the financial instrument inStage3, the interest income is calculated by applying the effective interest rate to the amortised cost (after deduction of theimpairment provision from the gross carrying amount).
For notes and accounts receivables and receivables financing arising from daily business activities such as selling commodities andproviding labor services, regardless of whether there is a significant financing component, the Group measures the loss provisionbased on the expected credit loss for the entire duration.
In case the expected credit losses of an individually assessed financial asset cannot be evaluated with reasonable cost, the Groupdivides the receivables into certain groupings based on credit risk characteristics, and calculates the expected credit losses for thegroupings. Basis for determined groupings and method for provision are as follows:
| Notes receivables Portfolio 1 | Bank acceptance notes | Expected credit loss method |
| Notes receivables Portfolio 2 | Tradeacceptance Notes | Expected credit loss method |
| Accounts receivables Portfolio1 | Receivables related third party | Expected credit loss method |
| Accounts receivables Portfolio2 | Receivables relatedparty | Expected credit loss method |
| Other receivables Portfolio1 | Receivables related third party | Expected credit loss method |
| Other receivables Portfolio 2 | Receivables related party | Expected credit loss method |
For notes and accounts receivables and receivable financing arising from daily business activities such as selling commodities andproviding labor services, the Group refers to historical credit loss experience, combined with current conditions and predictions offuture economic conditions. In addition to notes receivable, factoring receivables and other receivables classified as a combination,the Group refers to historical credit loss experience, combines current conditions and predictions of future economic conditions, andpasses default risk exposure and future 12. The expected credit loss rate within a month or the entire duration is calculated as the
expected credit loss.
The Group recognizes the loss provision made or reversed into profit or loss for the current period. For debt instruments that are heldat fair value and whose changes are included in other comprehensive income, the Group adjusts other comprehensive income whileaccounting for impairment losses or gains in the current profit or loss.
(iii)DerecognitionA financial asset is derecognised when any of the below criteria is met: (1)the contractual rights to receive the cashflows from thefinancial asset expire; (2) the financial asset has been transferred and the Group transfers substantially all the risks and rewards ofownership of the financial asset to the transferee;(3)the financial asset has been transferred and the Group has not retained control ofthe financial asset, although the Group neither transfers nor retains substantially all the risks and rewards of ownership of thefinancial asset.
(b) Financial liabilities
The Group's financial liabilities mainly comprise financial liabilities at amortised cost, including bills payable, accounts payable, andother payables. This type of financial liability is initially measured at its fair value after deducting transaction costs, and issubsequently measured using the actual interest rate method. If the maturity is less than one year (including one year), it is listed ascurrent liabilities; if the maturity is more than one year but matures within one year (including one year) from the balance sheet date,it is listed as non-expiring within one year Current liabilities; the rest are listed as non-current liabilities.
A financial liability is derecognized or partly derecognized when the underlying present obligation is discharged or partly discharged.The difference between the carrying amount of the derecognized part of the financial liability and the consideration paid isrecognised in profit or loss for the current period.
(c)Determination of fair value of financial instruments
The fair value of a financial instrument that is tradedinanactive market is determined at the quoted price in the active market. The fairvalue of a financial instrument that is not tradedinanactive market is determined by using a valuation technique. In valuation, theGroup adopts valuation techniques applicable in the current situation and supported by adequateavailable data and other information,selects inputs with the same characteristics as those of assets or liabilities considered in relevant transactions of assets or liabilitiesbymarket participants, and gives priority to the use of relevant observable inputs. When relevant observable inputs are not available orfeasible, unobservable inputs are adopted.
10. Inventories
(a) Classification
Inventories 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)Valuation method for issuing inventory
Cost 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) Amortization methods of low-value consumables and packaging materials.
Turnover materials include low-value consumables and packaging materials, amortized using the one-off write-off method.
(d) The determination of net realisable value and the method of provision for decline in the value of inventories.
Provision for decline in the value of inventories is determined at the excess amount of book values of the inventories over their netrealizable value. Net realizable value is determined based on the estimated selling price in the ordinary course of business, less theestimated costs to completion and estimated costs necessary to make the sale and related taxes.
(e) The Group adopts the perpetual inventory system.
11. Assets classified as 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) thenon-current asset or the disposal group is available for immediate sale in its present condition subject to terms that are traditionallyand customary for sales; (2) the Group has made a resolution and obtained appropriate approval for disposal of the non-current assetor the disposal group, and the transfer is to be completed within one year.
Non-current assets (except for financial assets, investment properties at fair value and deferred tax assets) that meet the recognitioncriteria for held for sale are recognised at the amount equal to the lower of the fair value less costs to sell and book value. Thedifference between fair value less costs to sell and 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, and 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 isseparately identifiable operationally and for financial reporting purposes, and satisfies one of the following conditions: (1) representsa separate major line of business or geographical area of operations; (2) is part of a single coordinated plan to dispose of a separatemajor line of business or geographical area of operations; and (3) is a subsidiary acquired exclusively with a view to resale.
The discontinuedoperation profits on income statement presentation have included the profits and loss of operation and disposal.
12. Long-term equity investments
Long-term equity investments comprise the Company’s long-term equity investments in its subsidiaries, and the Group’s long-termequity 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.
(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 time ofmerger; when the long-term equity investment obtained from business combinations involving entities not under common control,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 of related profit or loss
For long-term equity investments accounted for using the cost method, they are measured at the initial investment costs, and cashdividends or profit distribution declared by the investees are recognised as investment income in profit or loss.
For long-term equity investments accounted for by the equity method, if the initial investment cost is greater than the fair value of theinvestee’s identifiable net assets, the initial investment cost shall be used as the long-term equity investment cost; if the initialinvestment cost is less than the investment, the invested entity shall be entitled to If the fair value share of net assets is identifiable,the difference is included in the current profit and loss, and the cost of equity investment in the growth period is adjusted accordingly.
For long-term equity investments accounted for using the equity method, the Group recognises the investment income according to itsshare of net profit or loss of the investee. The Group discontinues recognising its share of the net losses of an investee after the carryingamounts of the long-term equity investment together with any long-term interests that in substance form part of the investor’s netinvestment in the investee are reduced to zero. However, if the Group has obligations for additional losses and the criteria with respect torecognition of provisions under the accounting standards on contingencies are satisfied, the Group continues recognising the investmentlosses and the provisions. For changes in owners’ equity of the investee other than those arising from its net profit or loss, itsproportionate share is directly recorded into capital surplus, provided that the proportion of shareholding of the Group in the investeeremains unchanged. The carrying amount of the investment is reduced by the Group’s share of the profit distribution or cash dividendsdeclared by an investee. The unrealised profits or losses arising from the transactions between the Group and its investees are eliminatedin proportion to the Group’s equity interest in the investees, based on which the investment gain or losses are recognised. Any lossesresulting from transactions between the Group and its investees attributable to asset impairment losses are not eliminated.
(c) Basis for determining existence of control, jointly control or significant influence over investees
The term "control" refers to the power in the investees, to obtain variable returns by participating in the related business activities ofthe 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
Book value of long-term equity investments in subsidiaries and associates is reduced to the recoverable amount when the recoverableamount is less than book value.
13. Fixed assets
(a) Recognition and initial measurement
Fixed assets comprise buildings, machinery and equipment, motor vehicles and others.
Fixed assets are recognised when it is probable that the related economic benefits will probably flow to the Group and the costs canbe reliably measured. Fixed assets purchased or constructed by the Group are initially measured at cost at the acquisition date.
Subsequent expenditures incurred for a fixed asset are included in the cost of the fixed asset when it is probable that the associatedeconomic benefits will flow to the Group and the related cost can be reliably measured. Book value of the replaced part isderecognised. All the other subsequent expenditures are recognised in profit or loss in the period in which they are incurred.
(b)Depreciation methods
Fixed assets are depreciated using the straight-line method to allocate the cost of the assets to their estimated residual values overtheir estimated useful lives. For the fixed assets that have been provided for impairment loss, the related depreciation charge isprospectively determined based upon the adjusted carrying amounts over their remaining useful lives.
The estimated useful lives, the estimated net residual values expressed as a percentage of cost and the annual depreciation rates offixed assets are as follows:
| Item | Depreciation method | Estimated useful lives | Estimated net residual value | Annual depreciation rate |
| Building | Straight-line method | 20 to 35 years | 5% | 2.71% to 4.75% |
| Machinery and equipment | Straight-line method | 8 to20 years | 5% | 4.75% to11.88% |
| Motor vehicles and others | Straight-line method | 5 to8 years | 0% | 12.50% to20.00% |
The estimated useful life, the estimated net residual value of a fixed asset and the depreciation method applied to the asset arereviewed, and adjusted as appropriate at each year-end.
(c) Book value of a fixed asset is reduced to the recoverable amount when the recoverable amount is below book value.
(d)Disposal
A fixed asset is derecognised on disposal or when no future economic benefits are expected from its use or disposal. The amount ofproceeds from disposals on sale, transfer, retirement or damage of a fixed asset net ofits carrying amount and related taxes andexpenses is recognised in profit or loss for the current period.
14. Construction in progress
Construction in progress is recorded at actual cost. Actual cost comprises construction cost, installation cost, borrowing costs eligiblefor capitalised condition and necessary expenditures incurred for its intended use. Actual cost also includes net of trial productioncost 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 begins fromthe following month.
Book value of construction in progress is reduced to the recoverable amount when the recoverable amount is below book value.
15.Borrowing costs
The borrowing costs that are directly attributable to the acquisition and construction of an asset that needs a substantially long periodof time for its intended use commence to be capitalised and recorded as part of the cost of the asset when expenditures for the assetand borrowing costs have been incurred, and the activities relating to the acquisition and construction that are necessary to preparethe asset for its intended use have commenced. The capitalisation of borrowing costs ceases when the asset under acquisition orconstruction becomes ready for its intended use and the borrowing costs incurred thereafter are recognised in profit or loss for thecurrent period. Capitalisation of borrowing costs is suspended during periods in which the acquisition or construction of a fixed assetis interrupted abnormally and the interruption lasts for more than 3 months, until the acquisition or construction is resumed.
For the specific borrowings obtained for the acquisition or construction of an asset qualifying for capitalisation, the amount ofborrowing costs eligible for capitalisation is determined by deducting any interest income earned from depositing the unused specificborrowings in the banks or any investment income arising on the temporary investment of those borrowings during the capitalisationperiod.
For the general borrowings obtained for the acquisition or construction of an asset qualifying for capitalisation, the amount ofborrowing 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.
16. Intangible assets
(1)Valuation method, useful life and impairment test
Intangible assets, mainly including land use rights, patents and proprietary technologies, exploitation rights and others, are measuredat 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 ofthe acquisition costs are recognised as fixed assets.
(b) Patents and proprietary technologies
Patents and proprietary technologiesare amortised on a straight-line basis over the estimated use life.
(c) Exploitation rights
Exploitation rights are amortised on a straight-line basis over permitted exploitation periods on the exploitation certificate.
(d) Periodical review of useful life and amortization method
For an intangible asset with a finite useful life, review of its useful life and amortization method is performed at each year-end, withadjustment made as appropriate.
(e) Impairment of intangible assets
Book value of intangible assets is reduced to the recoverable amount when the recoverable amount is below book value.
(2)Accounting policy for internal research and development expenditure
The expenditure on an internal research and development project is classified into expenditure on the research phase and expenditureon the development phase based on its nature and whether there is material uncertainty that the research and development activitiescan form 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 phaserelated to the design and testing phase in regards to the final application of manufacturing technique is capitalised only if all of thefollowing conditions are satisfied:
? the development of manufacturing technique has been fully demonstrated by technical team;? management has approved the budget for the development of manufacturing technique;? there are research and analysis of pre-market research explaining that products manufactured with such technique are capableof marketing;? There is sufficient technical and capital to support the development of manufacturing technique and subsequent massproduction; and the 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 atthe date that the asset is ready for its intended use.
17. 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; intangibleassets not ready for their intended use are tested at least annually for impairment, irrespective of whether there is any indication that
they may be impaired. If the result of the impairment test indicates that the recoverable amount of an asset is less than its carryingamount, a provision for impairment and an impairment loss are recognised for the amount by which the asset’s carrying amountexceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and the present value ofthe future cash flows expected to be derived from the asset. Provision for asset impairment is determined and recognised on theindividual asset basis. If it is not possible to estimate the recoverable amount of an individual asset, the recoverable amount of agroup of assets to which the asset belongs is determined. A group of assets is the smallest group of assets that is able to generateindependent cash inflows.
Goodwill that is separately presented in the financial statements is tested at least annually for impairment, irrespective of whetherthere is any indication that it may be impaired. In conducting the test, book value of goodwill is allocated to the related asset groupsor groups of asset groups which are expected to benefit from the synergies of the business combination. If the result of the testindicates that the recoverable amount of an asset group or group of asset groups, including the allocated goodwill, is lower than itscarrying amount, the corresponding impairment loss is recognised. The impairment loss is first deducted from book value of goodwillthat is allocated to the asset group or group of asset groups, and then deducted from book values of other assets within the assetgroups or groups of asset groups in proportion to book values 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.
18. Long-term prepaid expenses
Long-term prepaid expenses include the expenditures that have been incurred but should be recognised as expenses over more thanone year 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 amortization.
19. Employee benefits
(1) Short-term employee benefits
Short-term employee benefits include wages or salaries, bonuses, allowances and subsidies, staff welfare, medical care, work injuryinsurance, maternity insurance, housing funds, labour union funds, employee education funds and paid short-term leave, etc. Theemployee benefit liabilities are recognised in the accounting period in which the service is rendered by the employees, with acorresponding charge to the profit or loss for the current period or the cost of relevant assets. Employee benefits which arenon-monetary benefits shall be measured at fair value.
(2)Accounting treatment method for post-employment benefits
The Group classifies post-employment benefit plans as either defined contribution plans or defined benefit plans. Definedcontribution plans are post-employment benefit plans under which the Group pays fixed contributions into a separate fund and willhave no obligation to pay further contributions; and defined benefit plans are post-employment benefit plans other than definedcontribution plans. During the reporting period, the Group's post-employment benefits mainly include basic pensions andunemployment insurance, both of which belong to the defined contribution plans.
(3)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, local labour and social security institutions have a duty to paythe basic pension insurance to them. The amounts based on the above calculations are recognised as liabilities in the accountingperiod in which the service has been rendered by the employees, with a corresponding charge to the profit or loss for the currentperiod or the cost of relevant assets.
(4)Accounting treatment of dismissal benefits
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. TheGroup recognises a liability arising from compensation for termination of the employment relationship with employees, with acorresponding charge to profit or loss at the earlier of the following dates: 1) when the Group cannot unilaterally withdraw the offerof termination benefits because of an employment termination plan or a curtailment proposal; 2) when the Group recognises costs orexpenses related to the restructuring that involves the payment of termination benefits.
The dismissal benefits expected to be paid within one year since the balance sheet date are classified as current liabilities.
20. Provisions
Business restructuring, provisions for product warranties, loss 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 bydiscounting the related future cash outflows. The increase in the discounted amount of the provision arising from passage of time isrecognised as interest expense.
Book value of provision is reviewed at each balance sheet date and adjusted to reflect the current best estimate.
The provisions expected to be paid within one year since the balance sheet date are classified as current liabilities.
21. Share-based payments
Share-based payments are divided into equity-settled and cash-settled payments. The term "equity-settled share-based payment"refers to a transaction in which an enterprise grants shares or other equity instruments as a consideration in return for services.
Equity-settled share-based payment the Group‘s stock optionstock option plan is the equity-settled share-based payment in exchangeof employees' services and is measured at the fair value of the equity instruments at grant date. The equity instruments are exercisableafter services in vesting period are completed or specified performance conditions are met. In the vesting period, the servicesobtained in current period are included in relevant cost and expenses at the fair value of the equity instruments at grant date based onthe best estimate of the number of exercisable equity instruments, and capital surplus is increased accordingly. If the subsequentinformation indicates the number of exercisable equity instruments differs from the previous estimate, an adjustment is made and, on
the exercise date, the estimate is revised to equal the number of actual vested equity instruments.
In the period at which performance conditions and term of service are met, the relevant cost and expenses of equity-settled paymentshould be recognized, and capital surplus is increased accordingly. Before the exercise date, the accruing amounts of equity-settledpayments on balance sheet date reflect the part of expired waiting period and optimal estimation for the number of the Company finalvested equity instruments.
If the non-market conditions and term of service are not met so that share-based payment fail to exercise, the costs and expenses onthis portion should not be recognized. If the share-based payment agreement sets out the market conditions and term of non-vesting,as long as performance conditions and term of service are met, it is should be regard as exercisable right, no matter the marketconditions and non-vesting conditions are meet or not.
If the terms of equity-settled payment are modified, at least the service is confirmed in accordance with the unmodified terms. Inaddition, the increase of the fair value of the authorized equity instruments, or the beneficial changes to the employees on themodification date, the increase of service are confirmed.If the equity-settled payment is cancelled, the cancellation date shall bedeemed as an expedited exercise, and the unconfirmed amount shall be confirmed immediately. If the employee or other party is ableto choose to meet the non-vesting conditions but not satisfied in the waiting period, equity-settled payment should be cancelled. Butif a new equity instrument is granted, and the new equity instrument is confirmed to replace the old equity instrument which iscanceled in the authorization date of the new equity instrument, the new equity instrument should be disposed by using the sameconditions and terms of the old equity instrument for modifications.
22. Revenue
Has the new revenue standard been implemented
√Yes □ No
The Group has performed the performance obligation in the contract, that is, when the customer obtains control of the relevant goodsor services, the revenue is recognized according to the transaction price allocated to the performance obligation. The performanceobligation refers to the commitment of the Group to transfer to the customer in the contract that can clearly distinguish the goods orservices. Transaction price refers to the amount of consideration that the Group is expected to be entitled to receive for the transfer ofgoods or services to customers, but does not include the amount collected on behalf of a third party and the amount expected to bereturned to the customer by the Group.
If one of the following conditions is met, the performance obligation is performed within a certain period of time, and the Grouprecognizes the revenue within a period of time according to the performance progress: (1) the customers obtain and consume theeconomic benefits brought about by the performance of the Group; (2) the customers can control the commodities under constructionin the process of the Group's performance; (3) the products produced in the process of the Group's performance have no difference Itcan be used as an alternative and the Group is entitled to receive payment for the part of the contract which has been completed so farin the whole contract period. Otherwise, the Group recognizes revenue at the time when the customer obtains control of the relevantgoods or services.
23. Government grants
Government grants are transfers of monetary or non-monetary assets from the government to the Group at nil consideration,including tax refund and financial subsidies, etc.
A government grant is recognised when there is a reasonable assurance that the grants will be received and the Group will complywith all attached conditions. Monetary government grants are measured at the amounts received or receivable. Non-monetarygovernment grants are measured at fair value, if the fair value cannot be reliably obtained, it is measured at nominal amount.
The government grants related to assets refer to government grant obtained by enterprises and used for purchase and construction oflong-term assets or formation of long-term asset in other ways. The government grants related to income refer to grants other thanthose related to assets.
For government grants related to income, where the grant is a compensation for related expenses or losses to be incurred by theGroup in the subsequent periods, the grant is recognised as deferred income, and included in profit or loss over the periods in whichthe related costs are recognised; where the grant is a compensation for related expenses or losses already incurred by the Group, thegrant is recognised immediately in profit or loss for the current period.The company use the same method of presentation for similargovernment grants.
The ordinary activity government grants should be counted into operating profits; the government grants which not belong toordinary activities should be counted inton non-operationg income.
24. Deferred tax assets and deferred tax liabilities
Deferred tax assets and deferred tax liabilities are calculated and recognized based on the differences arising between the tax bases ofassets and liabilities and their carrying amounts (temporary differences). Deferred tax asset is recognized for the deductible lossesthat can be carried forward to subsequent years for deduction of the taxable profit in accordance with the tax laws. No deferred taxliability is recognized for a temporary difference arising from the initial recognition of goodwill. No deferred tax asset or deferred taxliability is recognized for the temporary differences resulting from the initial recognition of assets or liabilities due to a transactionother than a business combination, which affects neither accounting profit nor taxable profit (or deductible loss). At the balance sheetdate, deferred tax assets and deferred tax liabilities are measured at the tax rates that are expected to apply to the period when theasset is realized or the liability is settled.
Deferred tax assets are only recognized 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 andtax credits can be utilized.
Deferred tax liabilities are recognized 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 willnot reverse 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 utilized, the corresponding deferred tax assets are recognized.
Deferred tax assets and liabilities are offset when:
The deferred taxes are related to the same tax payer within the Group and the same taxation authority;That tax payer within the Group has a legally enforceable right to offset current tax assets against current tax liabilities.
25. Leases
(1)Accounting treatment 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 capitalisedas part 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 treatment of finance lease
A lease that transfers substantially all the risks and rewards incidental to ownership of an asset is a finance lease. An operating leaseis a lease other than a finance lease.
26. Other important accounting policies and accounting estimates
The Group continually Estimates the critical accounting estimates and key assumptions applied based on historical experience andother factors, including expectations of future events that are believed to be reasonable.
The critical accounting estimates and key assumptions that have a significant risk of possibly causing a material adjustment to bookvalues of assets and liabilities within the next accounting year are outlined below:
(a) Income taxThe Group is subject to Income tax in numerous jurisdictions. There are some transactions and events for which the ultimate taxdetermination is uncertain during the ordinary course of business. Significant judgement is required from the Group in determiningthe provision for Income tax in each of these jurisdictions. Where the final identified outcome of these tax matters is different fromthe initially-recorded amount, such difference will impact the income tax expenses and deferred income tax in the period in whichsuch determination is finally made.
(b) Deferred income taxEstimates on deferred tax assets are based on estimates on amount of taxable income and applicable tax rate for every year.Realisation 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.Management 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 theasset’s carrying amount by continually using the assets or disposal; and (3) whether the assumptions used in expected obtainablepresent 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 assetsManagement 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, management will adjustestimation to useful life of fixed assets. The fixed assets would be written off or written down when fixed assets been disposed orbecame redundant. Thus, the estimated result based on existing experience may be different from the actual result of the nextaccounting period, which may cause major adjustment to book value of fixed assets on balance sheet.
(e) Goodwill impairmentGoodwill impairment reviews are undertaken annually or more frequently if events or changes in circumstances indicate a potentialimpairment. For the purpose of impairment testing, goodwill acquired in a business combination is allocated to each of thecash-generating units (―CGUs‖), or groups of CGUs, and future cash flow from each CGU or CGUs is forcasted and discounted withappropriate discount rate.
27. Significant accounting policies and changes in accounting estimates
(1) Important accounting policy changes
√ Applicable □Not applicable
Details can be found on the Company's announcement of accounting policy changes.
(2) Changes in important accounting estimates
□Applicable √ Not applicable
(3)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 from2020
√Applicable □Not applicable
Is it necessary to adjust the balance sheet accounts at the beginning of the year
√Yes □ No
Unit: RMB
| Item | 31 December 2019 | 1 January 2020 | Adjustment |
| Advances from customers | 292,803,811 | -292,803,811 | |
| Contract liabilities | 292,803,811 | 292,803,811 |
Note: The finance ministry issued Accounting Standard ForBusiness 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 from customers", and the payment shall be
reported in the "Contract liability" from January 1, 2020.
(4) 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
28. Others
(1)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 are mainly used for the overhaul, renewal and maintenance of safety facilities. The safety productioncosts are charged to costs of related products or profit or loss when appropriated, and safety production costs in equity account arecredited correspondingly. When using the special reserve, if the expenditures are expenses in nature, the expenses incurred are offsetagainst the special reserve directly when incurred. If the expenditures are capital expenditures, when projects are completed andtransferred to fixed assets, the special reserve should be offset against the cost of fixed assets, and a corresponding accumulateddepreciation are recognised. The fixed assets are no longer be depreciated in future.
(2) Segment information
The Group identifies operating segments based on the internal organisation structure, management requirements and internalreporting system, 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: (a) the component is able to earnrevenue and incur expenses from its ordinary activities; (b) whose operating results are regularly reviewed by the Group’smanagement to make decisions about resources to be allocated to the segment and to assess its performance, and (c) 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
| Category | Taxable basis | Tax rate |
| Value-added tax (―VAT‖) | Taxable value-added amount (Tax payable is calculated using the taxable sales amount multiplied by the applicable tax rate less deductible VAT input of | 3%-13% |
| the current period) | ||
| City maintenance and construction tax | VAT paid | 1%-7% |
| Enterprise income tax | Taxable income | 0%-25% |
| Educational surcharge | VAT paid | 3%-5% |
2. Tax incentives
The main tax incentives the Group is entitled to are as follows:
Tianjin CSG Energy-Saving Glass Co., Ltd. (―Tianjin Energy Conservation‖) passed review on a high and new tech enterprise in2018 and obtained the Certificate of High and New Tech Enterprise, the period of validity is three years. It applies to 15% tax rate forthree years since 2018.
Dongguan CSG Architectural Glass Co., Ltd. (―Dongguan CSG‖) passed review on a high and new tech enterprise in 2019 andobtained the Certificate of High and New Tech Enterprise, the period of validity is three years. It applies to 15% tax rate for threeyears since 2019.
Wujiang CSG East China Architectural Glass Co., Ltd. (―Wujiang CSG Engineering‖) passed review on a high and new techenterprise in 2017 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 2017.
Dongguan CSG Solar Glass Co., Ltd. (―Dongguan CSG Solar‖) passed review on a high and new tech enterprise in 2017 andobtained the Certificate of High and New Tech Enterprise, the period of validity is three years. It applies to 15% tax rate for threeyears since 2017.
Yichang CSG Polysilicon Co., Ltd.(―Yichang CSG Polysilicon‖) passed review on a high and new tech enterprise in 2017 andobtained the Certificate of High and New Tech Enterprise, the period of validity is three years. It applies to 15% tax rate for threeyears since 2017.
Dongguan CSG PV-tech Co., Ltd. (―Dongguan CSG PV-tech‖) passed review on a high and new tech enterprise in 2019 and obtainedthe Certificate of High and New Tech Enterprise, the period of validity is three years. It applies to 15% tax rate for three years since2019.
Hebei Panel Glass Co., Ltd. (―Hebei Panel Glass‖) passed review on a high and new tech enterprise in 2019 and obtained theCertificate of High and New Tech Enterprise, the period of validity is three years. It applies to 15% tax rate for three years since2019.
Wujiang CSG Glass Co., Ltd. (―Wujiang CSG‖) passed review on a high and new tech enterprise in 2017, and obtained theCertificate of High and New Tech Enterprise, and the period of validity was three years. It applies to 15% tax rate for three yearssince 2017.
Xianning CSG Glass Co., Ltd. (―Xianning CSG‖) passed review on a high and new tech enterprise in 2017, 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 yearssince 2017.
Xianning CSG Energy-Saving Glass Co., Ltd. (―Xianning CSG Energy-Saving‖) passed review on a high and new tech enterprisein2018, 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 2018.
Yichang CSG Photoelectric Glass Co., Ltd. (―Yichang CSG Photoelectric‖) passed review on a high and new tech enterprise in 2018,and obtained the Certificate of High and New Tech Enterprise, and the period of validity was three years. It applies to 15% tax ratefor three years since 2018.
Qingyuan CSG New Energy-Saving Materials Co., Ltd. (―Qingyuan CSG Energy-Saving‖) passed review on a high and new techenterprise in 2019, and obtained the Certificate of High and New Tech Enterprise, and the period of validity was three years. Itapplies to 15% tax rate for three years since 2019.
Hebei CSG Glass Co., Ltd. (―Hebei CSG‖) was recognised as a high and new tech enterprise in 2018, and obtained the Certificate ofHigh and New Tech Enterprise, and the period of validity was three years. It applies to 15% tax rate for three years since 2018.
Shenzhen CSG Applied Technology Co., Ltd. (―Shenzhen Technology‖) was recognised as a high and new tech enterprise in 2018,and obtained the Certificate of High and New Tech Enterprise, and the period of validity was three years. It applies to 15% tax ratefor three years since 2018.
Yichang CSG Display Co., Ltd (―Yichang CSG Displayer‖) passed review on a high and new tech enterprisein 2018, and obtainedthe Certificate of High and New Tech Enterprise, and the period of validity was three years. It applies to 15% tax rate for three yearssince 2018.
Xianning CSG Photoelectric Glass Co., Ltd. (―Xianning Photoelectric‖) passed review on a high and new tech enterprise in 2019 andobtained the Certificate of High and New Tech Enterprise, the period of validity is three years. It applies to 15% tax rate for threeyears since 2019.
Sichuan CSG Energy Conservation Glass Co., Ltd. (―Sichuan CSG Energy Conservation‖) obtains enterprise income tax preferentialtreatment for Western Development, and temporarily calculates enterprise income tax at a tax rate of 15% for current period.
Chengdu CSG Glass Co., Ltd. (―Chengdu CSG‖) obtains enterprise income tax preferential treatment for Western Development, andtemporarily calculates enterprise income tax at a tax rate of 15% for current period.
Qingyuan CSG New Energy Co., Ltd. (―Qingyuan CSG New Energy‖), Suzhou CSG PV Energy Co., Ltd. (―Suzhou CSG PVEnergy‖), Jiangsu Wujiang CSG New Energy Co., Ltd. (―Wujiang CSG New Energy‖), and Yichang CSG New Energy Co., Ltd.(―Yichang CSG New Energy‖), Zhangzhou CSG Kibing PV Energy Co., Ltd. (―Zhangzhou CSG‖), Heyuan CSG Kibing PV EnergyCo., Ltd. (―Heyuan CSG‖), Shaoxing CSG Kibing PV Energy Co., Ltd. (―Shaoxing CSG‖) ,XianningCSG PV Energy Co.,Ltd.(―Xianning CSG PV Energy‖) and Zhanjiang CSG New Energy Co., Ltd. (―Zhanjiang CSG PV Energy‖‖),are publicinfrastructure 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 andthree-year halves‖, that is, starting from the tax year when the first revenue from production and operation occurs, the enterpriseincome tax is exempted from the first to the third year, while half of the enterprise income tax is collected for the following threeyears.
3. Others
Some subsidiaries of the Group have used the ―exempt, credit, refund‖ method on goods exported and the refund rate is0%-13%。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 | 3,393 | 4,268 |
| Cash at bank | 2,891,652,578 | 1,781,830,762 |
| Other cash balances | 183,317,673 | 205,145,388 |
| Total | 3,074,973,644 | 1,986,980,418 |
| Including: Total overseas deposits | 35,025,997 | 40,403,719 |
Other cash balances include margin deposits for theissuance of bills and letter of creditfrom the bank, amounting to RMB 3,317,673(Dec. 31, 2019: RMB 155,145,388), 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 |
| Trade acceptance notes | 230,044,196 | 297,023,380 |
| Total | 230,044,196 | 297,023,380 |
(2) By June 30, 2020, notes receivable which had been endorsed or discounted by the Group but are not yetdue are as follows:
Unit: RMB
| Item | Amount of recognition termination at the period-end | Amount of not terminated recognition at the period-end |
| Trade acceptance notes | 74,315,442 | |
| Total | 74,315,442 |
3. Accounts receivable
(1) Accounts receivable disclosed by category
Unit: RMB
| Category | End of term | Beginning of term | ||||||||
| Carrying amount | Provision for bad debts | Book value | Carrying amount | Provision for bad debts | Book value | |||||
| Amount | Proportion | Amount | Proportion | Amount | Proportion | Amount | Proportion | |||
| Provision for bad debts on the individual basis | 15,443,934 | 2% | 15,443,934 | 100% | 0 | 15,306,177 | 2% | 15,306,177 | 100% | 0 |
| Provision for bad debts by portfolio | 797,041,090 | 98% | 16,072,644 | 2% | 780,968,446 | 662,934,109 | 98% | 13,252,932 | 2% | 649,681,177 |
| Total | 812,485,024 | 100% | 31,516,578 | 4% | 780,968,446 | 678,240,286 | 100% | 28,559,109 | 4% | 649,681,177 |
Provision for bad debts on the individual basis:
Unit: RMB
| Name | Closing balance | ||
| Carrying amount | Provision for bad debts | Proportion | |
| Provision for bad debts on the individual basis | 15,443,934 | 15,443,934 | 100% |
| Total | 15,443,934 | 15,443,934 | 100% |
Provision for bad debts by portfolio
Unit: RMB
| Name | Closing balance | ||
| Carrying amount | Provision for bad debts | Proportion | |
| Portfolio 1 | 797,041,090 | 16,072,644 | 2% |
| Total | 797,041,090 | 16,072,644 | 2% |
As at 30 June 2020, the bad debts of receivables were RMB 15,443,934 (31 December 2019: RMB 15,306,177) that to be providedindividually.It mainly represented the goods receivable due from a client of the subsidiary, Yichang CSG Displayer. Due to theclient’s bankruptcy, Yichang CSG Displayer made full provision against this receivable. It also represented the goods receivable duefrom a client of the subsidiary, Dongguan CSG PV-tech. Due to business dispute, Dongguan CSG PV-tech made full provisionagainst this receivable.
Disclosure by the ageing of accounts receivable
Unit: RMB
| Ageing | Closing balance |
| Within 1 year (including 1 year) | 733,993,069 |
| 1 to 2 years | 53,948,845 |
| 2 to 3 years | 13,892,201 |
| Over 3 years | 10,650,909 |
| 3 to 4 years | 3,557,525 |
| 4 to 5 years | 7,093,384 |
| Total | 812,485,024 |
(2)Provision for bad debts accrued, recovered or reversed in the current period
Unit: RMB
| Category | Opening balance | Amount of change in the current period | Closing balance | |||
| Provision | Collect or reversal | Write-off | Others | |||
| Accounts receivable bad debt provision | 28,559,109 | 5,714,069 | 2,756,600 | 31,516,578 | ||
| Total | 28,559,109 | 5,714,069 | 2,756,600 | 31,516,578 | ||
(3) Top 5 of the closing balance of the accounts receivable collected according to the arrears party
Unit: RMB
| Name | Closing balance of accounts receivable | Proportion in the total balance of accounts receivable at the end of the period | Ending balance of bad debt reserves |
| Total balances for the five largest accounts receivable | 120,042,616 | 15% | 2,400,853 |
| Total | 120,042,616 | 15% | 2,400,853 |
4. Receivables Financing
Unit: RMB
| Item | Closing balance | Opening balance |
| Bank acceptance notes | 303,344,206 | 258,296,826 |
| Total | 303,344,206 | 258,296,826 |
(1) As at 30 June 2020, receivables financing which have been endorsed or discounted by the Group but arenot yet due are as follows:
Unit: RMB
| Item | Derecognised at the end of the period | Not derecognisedat the end of the period |
| Bank acceptance notes | 1,539,034,476 | |
| Total | 1,539,034,476 |
5. Advances to suppliers
(1) Listed by aging analysis
Unit: RMB
| Ageing | Closing balance | Opening balance | ||
| Amount | Proportion | Amount | Proportion | |
| within1year | 118,737,125 | 99% | 76,048,960 | 97% |
| 1 to 2years | 152,422 | 2,107,931 | 3% | |
| 2 to 3years | 719,471 | 1% | 39,136 | |
| over 3 years | 36,035 | |||
| Total | 119,645,053 | 100% | 78,196,027 | 100% |
As at June 30, 2020, advances to suppliers over 1 year with a carrying amount of RMB 907,928 (31 December 2019: RMB 2,147,067)were mainly prepaid to supplier for materials, which were not fully settled since the materials had not been received.
(2) Top 5 of the closing balance of the advances to suppliers collected according to the target
Unit: RMB
| Balance | Percentage in total advances to suppliers balance | |
| Total balances for the five largest advances to suppliers | 65,411,561 | 55% |
6. Other receivables
Unit: RMB
| Item | Closing balance | Opening balance |
| Other receivables | 201,571,781 | 202,854,864 |
| Total | 201,571,781 | 202,854,864 |
(1) Other receivables
1) Classification of other receivables by nature
Unit: RMB
| Nature | Closing book balance | Opening book balance |
| Receivables from special fund for talent | 171,000,000 | 171,000,000 |
| Refundable deposits | 10,070,032 | 11,767,626 |
| Payments made on behalf of other parties | 14,285,218 | 15,337,999 |
| Petty cash | 1,096,557 | 328,077 |
| Advance payment (i) | 11,688,142 | 11,710,142 |
| Others | 9,211,319 | 8,486,056 |
| Total | 217,351,268 | 218,629,900 |
(i) The subsidiaries of Yingde CBM Mining Co., Ltd. and Wujiang CSG Co., Ltd. mainly prepaid to supplier for materials. Theprepayments accounts are transferred to other receivables and the provision of the bad debts was provided individually.2）Withdrawal of bad debt provision
Unit: RMB
| Bad debt provision | Phase I | Phase II | Phase III | Total |
| Expected credit losses in the next 12 months | Expected credit loss for the entire duration (no credit impairmentoccurred) | Expected credit loss for the entire duration (credit impairment occurred) | ||
| Balance on1 January2020 | 4,138,582 | 11,636,454 | 15,775,036 | |
| Balance on1 January2020 in current period | —— | —— | —— | —— |
| --Transferred to the Phase II | ||||
| --Transferred to the Phase III | ||||
| -- Transferred back to the Phase II | ||||
| -- Transferred back to the Phase I | ||||
| Withdrawal | 257,778 | 257,778 | ||
| Recovery | 231,327 | 22,000 | 253,327 | |
| Write-off | ||||
| Verification | ||||
| Other changes | ||||
| Balance on 30 June 2020 | 4,165,033 | 11,614,454 | 15,779,487 |
Significant changes in book balance of loss reserve during the current period
□ Applicable √ Not applicable
Disclosure by the ageing of other receivables
Unit: RMB
| Ageing | Closing balance |
| Within 1 year (including 1 year) | 6,961,148 |
| 1 to 2 years | 10,188,123 |
| 2 to 3 years | 4,349,434 |
| Over 3 years | 195,852,563 |
| 3 to 4 years | 451,392 |
| 4 to 5 years | 10,871,496 |
| Over 5 years | 184,529,675 |
| Total | 217,351,268 |
3) Provision for bad debts withdrawn, recovered or reversed during the report period
Provision for bad debts:
Unit: RMB
| Category | Opening balance | Amount of change in the current period | Closing balance | |||
| Provision | Collect or reversal | Write-off | Others | |||
| Provision for bad debts of other receivables | 15,775,036 | 257,778 | 253,327 | 15,779,487 | ||
| Total | 15,775,036 | 257,778 | 253,327 | 15,779,487 | ||
4) Top 5 of the closing balance of the other accounts receivable collated according to the arrears party
Unit: RMB
| Name of Company | Nature of business | Closing balance | Ageing | Proportion in the total balance of other receivables at the end of the period | Closing balance of bad debt provision |
| Company A | Independent third party | 171,000,000 | Over 5 years | 79% | 3,420,000 |
| Governmental departmentB | Independent third party | 11,067,754 | 4 to5Years | 5% | 221,355 |
| Company C | Independent third party | 10,366,164 | 4 to5Years | 5% | 10,366,164 |
| Company D | Independent third party | 3,350,000 | 1 to 2 Years | 2% | 67,000 |
| Company E | Independent third party | 2,397,512 | 1 to 2 Years | 1% | 47,950 |
| Total | -- | 198,181,430 | -- | 92% | 14,122,469 |
7. Inventories
(1) Inventory classification
Unit: RMB
| Item | Closing balance | Opening balance | ||||
| Carrying amount | Reserve for depreciation of inventory or impairment of contract performance cost | Book value | Carrying amount | Reserve for depreciation of inventory or impairment of contract performance cost | Book value | |
| Raw materials | 270,776,192 | 1,487,158 | 269,289,034 | 227,091,252 | 1,930,091 | 225,161,161 |
| Products in process | 22,532,829 | 22,532,829 | 31,568,189 | 31,568,189 | ||
| Products in stock | 705,280,634 | 45,143 | 705,235,491 | 521,700,720 | 3,873,252 | 517,827,468 |
| Material in circulation | 40,125,601 | 550,221 | 39,575,380 | 38,315,093 | 550,221 | 37,764,872 |
| Total | 1,038,715,256 | 2,082,522 | 1,036,632,734 | 818,675,254 | 6,353,564 | 812,321,690 |
(2)Provision for decline in the value of inventories
Unit: RMB
| Item | Opening balance | Increased in this term | Decreased in this term | Closing balance | ||
| Provision | Others | Reversal or write off | Others | |||
| Raw materials | 1,930,091 | 442,933 | 1,487,158 | |||
| Products in stock | 3,873,252 | 3,828,109 | 45,143 | |||
| Material in circulation | 550,221 | 550,221 | ||||
| Total | 6,353,564 | 4,271,042 | 2,082,522 | |||
8. Other current assets
Unit: RMB
| Item | Closing balance | Opening balance |
| VAT to be offset | 125,977,050 | 110,370,231 |
| Enterprise income tax prepaid | 13,044,977 | 18,012,235 |
| VAT input to be recognized | 11,910,045 | 19,613,465 |
| Entrusted loan | 300,000,000 | |
| Others | 230,675 |
| Total | 151,162,747 | 447,995,931 |
9. Fixed assets
Unit: RMB
| Item | Closing balance | Opening balance |
| Fixed assets | 8,482,459,154 | 9,783,037,301 |
| Total | 8,482,459,154 | 9,783,037,301 |
(1) Particulars of fixed assets
Unit: RMB
| Item | Buildings | Machinery and equipment | Motor vehicles | Total |
| I. Original book value: | ||||
| 1. Opening balance | 3,900,630,113 | 11,813,659,817 | 222,517,407 | 15,936,807,337 |
| 2. Increased amount of the period | ||||
| (1) Acquisition | 207,518 | 34,552,139 | 7,211,529 | 41,971,186 |
| (2) Transfers from construction in progress | 26,614,987 | 105,629,819 | 584,150 | 132,828,956 |
| (3) Others | 455,280 | 284,873 | 802 | 740,955 |
| 3. Decreased amount of the period | ||||
| (1) Disposal or retirement | 16,418,845 | 2,097,736 | 18,516,581 | |
| (2) Others | 151,851,665 | 1,333,423,890 | 861,005 | 1,486,136,560 |
| 4. Closing balance | 3,776,056,233 | 10,604,283,913 | 227,355,147 | 14,607,695,293 |
| II. Accumulative depreciation | ||||
| 1. Opening balance | 931,980,928 | 4,611,711,739 | 214,066,407 | 5,757,759,074 |
| 2. Increased amount of the period | ||||
| (1) Provision | 59,548,593 | 361,387,999 | 9,081,210 | 430,017,802 |
| 3. Decreased amount of the period | ||||
| (1) Disposal or retirement | 12,799,435 | 2,089,860 | 14,889,295 | |
| (2) Others | 22,615,651 | 314,774,166 | 441,386 | 337,831,203 |
| 4. Closing balance | 968,913,870 | 4,645,526,137 | 220,616,371 | 5,835,056,378 |
| III. Depreciation reserves | ||||
| 1. Opening balance | 14,224,161 | 381,739,978 | 46,823 | 396,010,962 |
| 2. Increased amount of the period | ||||
| (1) Provision |
| (2) Others | ||||
| 3. Decreased amount of the period | ||||
| (1) Disposal or retirement | 2,378,007 | 2,378,007 | ||
| (2) Others | 103,453,194 | 103,453,194 | ||
| 4. Closing balance | 14,224,161 | 275,908,777 | 46,823 | 290,179,761 |
| IV. Book value | ||||
| 1. Closing book value | 2,792,918,202 | 5,682,848,999 | 6,691,953 | 8,482,459,154 |
| 2. Opening book value | 2,954,425,024 | 6,820,208,100 | 8,404,177 | 9,783,037,301 |
(2) Fixed assets with pending certificates of ownership
Unit: RMB
| Item | Carrying amount | Reasons for not yet obtaining certificates of title |
| Buildings | 698,738,711 | Have submitted the required documents and are in the process of application, or the related land use right certificate pending |
10. Construction in process
Unit: RMB
| Item | Closing balance | Opening balance |
| Construction in process | 3,116,834,966 | 1,902,140,035 |
| Total | 3,116,834,966 | 1,902,140,035 |
(1) Particulars of construction in process
Unit: RMB
| Item | Closing balance | Opening balance | ||||
| Book balance | Provision for impairment loss | Book value | Book balance | Provision for impairment loss | Book value | |
| Yichang CSG polysilicon tech-innovation project | 1,535,667,571 | 375,097,200 | 1,160,570,371 | 1,532,811,638 | 375,097,200 | 1,157,714,438 |
| Yichanglarge scale silicon block construction project | 527,236,005 | 103,453,194 | 423,782,811 | |||
| Qingyuan New MaterialsPhase I technical transformation project | 421,097,466 | 421,097,466 | ||||
| Yichang display device company flat | 386,459,678 | 14,160,474 | 372,299,204 | 366,268,866 | 14,160,474 | 352,108,392 |
| panel display project | ||||||
| Qingyuan CSG Ultra-clean electronic glass and ultra-white special glass production line construction project | 305,403,338 | 305,403,338 | 88,706,261 | 88,706,261 | ||
| Dongguan PV B Building 450MWPERC battery technology upgrade projec | 202,018,364 | 202,018,364 | ||||
| Dongguan Solar Glass Phase I and II improvement projects | 78,970,995 | 40,248,018 | 38,722,977 | 78,970,995 | 40,248,018 | 38,722,977 |
| Wujiang float Environmental reforming project | 10,842,871 | 10,842,871 | 10,281,838 | 10,281,838 | ||
| LED Sapphire Substrate Project | 32,420,412 | 32,420,412 | 32,420,412 | 32,420,412 | ||
| Dongguan Solar New PV Tech Glass Processing Project | 4,901,694 | 4,901,694 | 4,727,020 | 4,727,020 | ||
| Zhaoqing CSG high grade energy saving glass production line project | 4,354,015 | 4,354,015 | ||||
| Zhaoqing CSG high grade automobile glass production line project | 3,822,191 | 3,822,191 | ||||
| Dongguan PV A Building 300MWPERC battery technology upgrade project | 3,735,197 | 3,735,197 | 67,981,191 | 67,981,191 | ||
| Anhui Lightweight &high-permeability panel for solar energy equipment manufacturing base project | 1,569,295 | 1,569,295 | ||||
| Anhui Fengyang quartz sand project | 78,489 | 78,489 | ||||
| Qingyuan quartz material processing line | 34,172,703 | 34,172,703 | ||||
| Others | 164,042,666 | 405,983 | 163,636,683 | 148,131,198 | 405,983 | 147,725,215 |
| Total | 3,682,620,247 | 565,785,281 | 3,116,834,966 | 2,364,472,122 | 462,332,087 | 1,902,140,035 |
（2）Construction in process in current period
Unit: RMB
| Project | Budget | Opening balance | Increased this term | Transfer to fixed assets in this term | Closing balance | Proportion between engineering input and budget | Progress | Projects | Accumulated amount of interest capitalization | Including: amount interest capitalization in current period | Interest capitalization rate in current period | Fund recourse |
| Yichang CSG polysilicon tech-innovation project | 49,520,000 | 1,532,811,638 | 2,855,933 | 1,535,667,571 | 98% | 100% | Internal fund and bank loan | |||||
| Yichanglarge scale silicon block construction project | 29,010,000 | 527,436,978 | 200,973 | 527,236,005 | 15% | 30% | Internal fund and bank loan | |||||
| Qingyuan New MaterialsPhase I technical transformation project | 217,690,000 | 421,097,466 | 421,097,466 | 1% | 1% | Internal fund and bank loan | ||||||
| Yichang display device company flat panel display project | 1,970,000,000 | 366,268,866 | 20,844,397 | 626,202 | 27,383 | 386,459,678 | 90% | 91% | 12,611,762 | 1,051,620 | 4.10% | Internal fund and bank loan |
| Qingyuan CSG Ultra-clean electronic glass and ultra-white special glass production line construction project | 785,000,000 | 88,706,261 | 216,697,077 | 305,403,338 | 39% | 65% | 5,896,716 | 3,720,018 | 5.23% | Internal fund and bank loan | ||
| Dongguan PV B Building 450MWPERC battery | 100,990,000 | 202,220,467 | 202,103 | 202,018,364 | 1% | 1% | Internal fund and bank loan |
| technology upgrade projec | ||||||||||||
| Dongguan Solar Glass Phase I and II improvement projects | 396,410,000 | 78,970,995 | 78,970,995 | 80% | 81% | Internal fund | ||||||
| Wujiang float Environmental reforming project | 50,300,000 | 10,281,838 | 561,033 | 10,842,871 | 58% | 99% | Internal fund | |||||
| LED Sapphire Substrate Project | 35,000,000 | 32,420,412 | 32,420,412 | 93% | 93% | 4,650,543 | Internal fund and bank loan | |||||
| Dongguan Solar New PV Tech Glass Processing Project | 60,000,000 | 4,727,020 | 174,674 | 4,901,694 | 97% | 100% | Internal fund | |||||
| Zhaoqing CSG high grade energy saving glass production line project | 500,000,000 | 4,354,015 | 4,354,015 | 1% | 1% | Internal fund and bank loan | ||||||
| Zhaoqing CSG high grade automobile glass production line project | 609,830,000 | 3,822,191 | 3,822,191 | 1% | 1% | Internal fund and bank loan | ||||||
| Dongguan PV A Building 300MWPERC battery technology upgrade project | 67,180,000 | 67,981,191 | 58,543,224 | 5,702,770 | 3,735,197 | 100% | 100% | 1,071,313 | 162,542 | 3.72% | Internal fund and bank loan | |
| Anhui Lightweight &high-permeability panel for solar energy equipment manufacturing base project | 3,739,020,000 | 1,569,295 | 1,569,295 | 1% | Internal fund, private placement and bank loan |
| Anhui Fengyang quartz sand project | 739,990,000 | 78,489 | 78,489 | 1% | Internal fund and bank loan | |||||||
| Qingyuan quartz material processing line | 36,478,048 | 34,172,703 | 31,773,011 | 2,399,692 | 98% | 99% | Internal fund and bank loan | |||||
| Others | 698,449,399 | 148,131,198 | 59,742,696 | 41,886,519 | 1,944,709 | 164,042,666 | 295,421 | 20,020 | Internal fund and bank loan | |||
| Total | 10,084,867,447 | 2,364,472,122 | 1,461,454,711 | 132,828,956 | 10,477,630 | 3,682,620,247 | -- | -- | 24,525,755 | 4,954,200 | -- |
11. Intangible assets
(1) Particulars of intangible assets
Unit: RMB
| Item | Land use rights | Patents | Exploitation rights | Others | Total |
| I. Original book value: | |||||
| 1. Opening balance | 1,026,603,700 | 346,510,092 | 4,456,536 | 39,486,039 | 1,417,056,367 |
| 2. Increased amount of this period | |||||
| (1) Acquisition | 87,344,000 | 2,195,526 | 89,539,526 | ||
| (2) Internal R&D | 134,119 | 134,119 | |||
| (3) Increase in business combination | |||||
| 3. Decreased amount of the period | |||||
| (1) Disposal | |||||
| 4. Closing balance | 1,113,947,700 | 346,644,211 | 4,456,536 | 41,681,565 | 1,506,730,012 |
| II.Accumulated amortization | |||||
| 1. Opening balance | 191,426,527 | 128,437,706 | 4,456,536 | 34,698,831 | 359,019,600 |
| 2. Increased amount of this period | |||||
| (1) Provision | 10,630,998 | 14,968,785 | 1,314,674 | 26,914,457 | |
| 3. Decreased amount of the period | |||||
| (1) Disposal | |||||
| 4. Closing balance | 202,057,525 | 143,406,491 | 4,456,536 | 36,013,505 | 385,934,057 |
| III. Impairment provision | |||||
| 1. Opening balance | 13,201,347 | 9,133 | 13,210,480 | ||
| 2. Increased amount of this period | |||||
| (1) Provision | |||||
| 3. Decreased amount of this period | |||||
| (1) Disposal |
| 4. Closing balance | 13,201,347 | 9,133 | 13,210,480 | ||
| IV. Book value | |||||
| 1. Closing book value | 911,890,175 | 190,036,373 | 5,658,927 | 1,107,585,475 | |
| 2. Opening book value | 835,177,173 | 204,871,039 | 4,778,075 | 1,044,826,287 |
At the end of the period, the intangible assets arising from internal research and development accounted for 16.97% of total ofintangible assets.
(2) Land use rights without property right certificates
Unit: RMB
| Item | Book value | Reasonfor notyet obtaining certificates of title |
| Land use rights | 5,145,623 |
As at June 30, 2020, ownership certificates of land use right (―Land ownership Certificates‖) for certain land use rights of the Groupwith carrying amounts of approximately RMB 5,145,623 (cost: RMB 6,685,352) had not yet been obtained by the Group (as atDecember 31, 2019, carrying amount: RMB 4,983,945, 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’sbusiness operation.
12. Development expenditure
Unit: RMB
| Item | Opening balance | The increased amount in the period | The decrease amount in the period | Closing balance | ||||
| Internal development expenditure | Others | Recognised as intangible assets | Transfer to current profit and loss | |||||
| Development expenditure | 85,240,356 | 24,206,452 | 134,119 | 109,312,689 | ||||
| Total | 85,240,356 | 24,206,452 | 134,119 | 109,312,689 | ||||
During Jan.-Jun. 2020, the total amount of research and development expenditures of the Group was RMB 169,270,099 (Jan.-Jun.2019: RMB 190,082,381), including RMB 145,063,647 (Jan.-Jun. 2019: RMB 174,276,136) recorded in income statement forcurrent period and the research and development expenditure with the amount of RMB 134,119recognised as intangible assets for thecurrent period (Jan.-Jun. 2019: 19,782,076). At June 30, 2020, the intangible assets arising from internal research and developmentaccounted for 16.97% of total of intangible assets (31 December 2019: 18.03%).
13. 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 |
| Tianjin CSG Energy-Saving Glass Co., Ltd. | 3,039,946 | 3,039,946 | ||
| Xianning CSG Photoelectric | 4,857,406 | 4,857,406 | ||
| Shenzhen CSG Display | 389,494,804 | 389,494,804 | ||
| Total | 397,392,156 | 397,392,156 |
(2) Goodwill impairment provision
Unit: RMB
| Name ofthe companies or goodwillitem | Opening balance | Increasedthis term | Decreasedthis term | Closing balance |
| Provision | Disposal | |||
| Shenzhen CSG Displayer | 82,294,400 | 82,294,400 | ||
| Total | 82,294,400 | 82,294,400 |
14. Long-term prepaid expenses
Unit: RMB
| Item | Opening balance | Increased this term | Amortized this term | Closing balance |
| Expenses to be amortized | 11,351,431 | 581,194 | 821,736 | 11,110,889 |
| Total | 11,351,431 | 581,194 | 821,736 | 11,110,889 |
15. Deferred income tax assets/deferred income tax liabilities
(1) Unoffset deferred income tax assets
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 | 861,194,739 | 131,770,639 | 864,645,227 | 131,772,057 |
| Deductible loss | 592,014,209 | 95,895,112 | 497,964,481 | 83,129,146 |
| Government grants | 174,198,153 | 26,129,723 | 182,452,278 | 27,367,842 |
| Accrued expenses | 27,656,502 | 4,148,475 | 30,032,597 | 4,504,890 |
| Depreciation of fixed assets | 19,298,252 | 2,897,298 | 19,790,300 | 2,968,545 |
| Total | 1,674,361,855 | 260,841,247 | 1,594,884,883 | 249,742,480 |
(2)Unoffset deferred income tax liabilities
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 | 485,789,467 | 74,369,021 | 494,317,001 | 74,147,550 |
| Total | 485,789,467 | 74,369,021 | 494,317,001 | 74,147,550 |
(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 assets or liabilities after off-set | Off-set amount of deferred income tax assets and liabilities at the period-beginning | Opening balance of deferred income tax assets or liabilities after off-set |
| Deferred tax assets | 41,410,795 | 219,430,452 | 43,949,893 | 205,792,587 |
| Deferred tax liabilities | 41,410,795 | 32,958,226 | 43,949,893 | 30,197,657 |
(4) Details of unrecognised deferred income tax assets
Unit: RMB
| Item | Closing balance | Opening balance |
| Deductible losses | 719,769,842 | 613,806,990 |
| Total | 719,769,842 | 613,806,990 |
(5) Deductible losses of unrecognized deferred income tax assets will due the following years
Unit: RMB
| Year | Closing balance | Opening balance | Note |
| 2020 | 94,430,197 | 94,430,197 | |
| 2021 | 111,625,585 | 111,625,585 | |
| 2022 | 83,303,539 | 83,303,539 | |
| 2023 | 146,238,837 | 146,238,837 | |
| 2024 | 178,208,832 | 178,208,832 | |
| 2025 | 105,962,852 |
| Total | 719,769,842 | 613,806,990 |
16. Other non-current assets
Unit: RMB
| Item | Closing balance | Opening balance | ||||
| Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
| Prepayment of engineering equipment | 97,628,519 | 97,628,519 | 88,489,893 | 88,489,893 | ||
| Prepayment for lease of land use rights | 6,510,000 | 6,510,000 | 31,910,000 | 31,910,000 | ||
| Total | 104,138,519 | 104,138,519 | 120,399,893 | 120,399,893 | ||
17. Short-term loans
(1)Short-term loan classification
Unit: RMB
| Item | Closing balance | Opening balance |
| Mortgage loan | 10,000,000 | 10,000,000 |
| Guaranteed loan | 576,423,055 | 543,969,137 |
| Unsecured loan | 718,000,000 | 1,687,000,000 |
| Ultra short-term financing bills | 300,000,000 | |
| Total | 1,604,423,055 | 2,240,969,137 |
(i) On June 30, 2020, the Company provided guarantees for short-term loans of RMB 576,423,055(31 December 2019: RMB543,969,137). There was no counter-guarantee provided by the minority shareholders of the subsidiary to the Company (31December 2019: Nil).
18. Notes payable
Unit: RMB
| Category | Closing balance | Opening balance |
| Bank acceptance notes | 187,639,865 | 232,063,968 |
| Total | 187,639,865 | 232,063,968 |
19. Accounts payable
(1) Particulars of accounts payable
Unit: RMB
| Item | Closing balance | Opening balance |
| Materials payable | 855,846,830 | 728,499,891 |
| Equipment payable | 164,444,946 | 174,902,946 |
| Construction expenses payable | 125,197,391 | 93,584,879 |
| Freight payable | 73,675,926 | 68,149,272 |
| Utilities payable | 42,512,406 | 28,835,685 |
| Others | 6,203,556 | 6,559,106 |
| Total | 1,267,881,055 | 1,100,531,779 |
(2) Significant accounts payabledue for over one year
Unit: RMB
| Item | Closing balance | Unpaid reason |
| Construction and equipments | 178,218,319 | As the construction work had not passed the final acceptance test yet, the balance was not yet settled. |
| Total | 178,218,319 | -- |
20. Contract liabilities
Unit: RMB
| Item | Closing balance | Opening balance |
| Contract liabilities | 269,082,855 | |
| Total | 269,082,855 |
21. Employee benefits payable
(1) List of employee benefits payable
Unit: RMB
| Item | Opening balance | Increased this term | Decreased this term | Closing balance |
| I. Short-term employee benefitspayable | 337,855,741 | 636,638,977 | 759,536,886 | 214,957,832 |
| II. Welfare after departure- defined contribution plans | 10,505 | 20,924,069 | 16,390,997 | 4,543,577 |
| III.Termination benefits | 18,479,127 | 7,123,660 | 11,355,467 | |
| Total | 337,866,246 | 676,042,173 | 783,051,543 | 230,856,876 |
(2) List of short-term employee benefits
Unit: RMB
| Item | Opening balance | Increased this term | Decreased this term | Closing balance |
| 1. Wages and salaries, bonuses, allowances and subsidies | 317,472,525 | 597,408,203 | 728,582,110 | 186,298,618 |
| 2. Social security contributions | 5,447 | 14,662,344 | 12,728,870 | 1,938,921 |
| Including: Medical insurance | 4,834 | 13,257,165 | 11,556,846 | 1,705,153 |
| Work injury insurance | 234 | 307,922 | 274,294 | 33,862 |
| Maternity insurance | 379 | 1,097,257 | 897,730 | 199,906 |
| 3. Housing funds | 2,156,229 | 17,470,672 | 12,416,687 | 7,210,214 |
| 4.Labour union funds and employee education funds | 18,221,540 | 7,097,758 | 5,809,219 | 19,510,079 |
| Total | 337,855,741 | 636,638,977 | 759,536,886 | 214,957,832 |
(3) List of defined contribution plans
Unit: RMB
| Item | Opening balance | Increased this term | Decreased this term | Closing balance |
| 1. Basic pensions | 10,401 | 20,142,273 | 15,773,620 | 4,379,054 |
| 2. Unemployment insurance | 104 | 781,796 | 617,377 | 164,523 |
| Total | 10,505 | 20,924,069 | 16,390,997 | 4,543,577 |
22. Tax payable
Unit: RMB
| Item | Closing balance | Opening balance |
| Value-added-tax payable | 46,232,466 | 45,587,584 |
| Corporate income tax payable | 66,981,225 | 49,932,889 |
| Individual income tax payable | 2,557,384 | 5,451,521 |
| City maintenance and construction tax | 3,332,449 | 3,629,966 |
| Property tax | 8,456,536 | 4,270,528 |
| Education surcharge | 2,716,684 | 2,726,651 |
| Environmental tax payable | 1,947,086 | 1,712,052 |
| Others | 3,417,503 | 2,113,853 |
| Total | 135,641,333 | 115,425,044 |
23. Other payables
Unit: RMB
| Item | Closing balance | Opening balance |
| Interest payable | 108,653,849 | 73,251,086 |
| Dividend payable | 2,985,563 | |
| Other payables | 162,047,977 | 275,138,126 |
| Total | 270,701,826 | 351,374,775 |
(1) Interest payable
Unit: RMB
| Item | Closing balance | Opening balance |
| Interest payable for long-term borrowings and medium-term notes | 68,592,227 | 66,701,561 |
| Interest payable forcorporate bonds | 32,333,333 | |
| Interest payable for short-term borrowings | 3,528,289 | 6,549,525 |
| Interest payable for ultra short-term financing bills | 4,200,000 | |
| Total | 108,653,849 | 73,251,086 |
(2)Dividends payable
Unit: RMB
| Item | Closing balance | Opening balance |
| Restricted shares dividend | 2,985,563 | |
| Total | 2,985,563 |
(3) Other payables
1) Listing other payables by nature of the payment
Unit: RMB
| Item | Closing balance | Opening balance |
| Guarantee deposits received from construction contractors | 76,123,502 | 75,417,942 |
| Accrued cost of sales | 44,046,421 | 43,270,188 |
| Payable for contracted labour costs | 17,091,373 | 17,947,192 |
| Temporary receipts | 15,895,634 | 12,276,662 |
| Deposit for disabled | 6,016,454 | 4,735,246 |
| Restricted share repurchases obligation | 118,066,397 | |
| Others | 2,874,593 | 3,424,499 |
| Total | 162,047,977 | 275,138,126 |
24. Current portion of non-current liabilities
Unit: RMB
| Item | Closing balance | Opening balance |
| Current portion of long-term borrowings | 25,350,000 | 125,475,000 |
| Current portion of finance lease | 67,489,388 | 386,981,928 |
| Medium term notes due within 1 year | 2,000,000,000 | 1,200,000,000 |
| Total | 2,092,839,388 | 1,712,456,928 |
25. Other current liabilities
Unit: RMB
| Item | Closing balance | Opening balance |
| Others | 300,000 | 300,000 |
| Total | 300,000 | 300,000 |
26. Long-term borrowings
(1) Long-term loan classification
Unit: RMB
| Item | Closing balance | Opening balance |
| Guaranteed | 175,200,269 | 190,225,000 |
| Unsecured | 500,000,000 | 330,000,000 |
| Medium term notes | 800,000,000 | |
| Total | 675,200,269 | 1,320,225,000 |
As at 30 June 2020, the interest of long-term borrowings varied from4.60%-4.75% (31 December 2019:4.70%-7%).
27. Bonds payable
(1) Bonds payable
Unit: RMB
| Item | Closing balance | Opening balance |
| Bonds payable | 1,991,652,870 | |
| Total | 1,991,652,870 |
On February 24, 2020, the Company held the eighth meeting of the Eighth Board of Directors and the eighth meeting of the EighthBoard of Supervisors, which deliberated and approved the Proposal on the Public Issuance of Corporate Bonds to Qualified Investors,and was deliberated and approved by the First Extraordinary General Meeting of Shareholders of 2020 on March 12, 2020. Publicissuance of corporate bonds with a total face value of no more than RMB 2 billion was approved by China Securities RegulatoryCommission " ZJXK [2019] No. 1140". On March 24, 2020 and March 25, 2020, the Company issued 3-year corporate bonds withan annual interest rate of 6%.
(2) Increase or decrease of bonds payable (excluding preferred shares, perpetual bonds and other financialinstruments classified as financial liabilities)
Unit: RMB
| Name | Face value | Issue date | Term | Amount of issue | Opening balance | Issue in the period | Interest accrued at face value | Amortization of premium and discount | Current repayment | Closing balance |
| 20 CSG 01 | 100 | 2020-3-24 to 2020-3-25 | 3 years | 2,000,000,000 | 2,000,000,000 | 32,333,333 | 8,347,130 | 0 | 1,991,652,870 | |
| Total | -- | -- | -- | 2,000,000,000 | 2,000,000,000 | 32,333,333 | 8,347,130 | 0 | 1,991,652,870 |
28. Long-term account payable
Unit: RMB
| Item | Closing balance | Opening balance |
| Long-term account payable | 53,006,500 | 87,240,529 |
| Total | 53,006,500 | 87,240,529 |
(1) List of Long-term account payable by nature
Unit: RMB
| Item | Closing balance | Opening balance |
| Financial lease | 53,006,500 | 87,240,529 |
The sale and leaseback lease of the group in this phase is a mortgage loan with a lease term of 36 months. On June 30, 2020, the realinterest rate of financing lease loans is 4.60%-5.23%.
29. Deferred income
Unit: RMB
| Item | Opening balance | Increase in current period | decrease in current period | Closing balance | Reason |
| Government grants | 513,925,557 | 3,000,000 | 17,118,391 | 499,807,166 | |
| Total | 513,925,557 | 3,000,000 | 17,118,391 | 499,807,166 | -- |
Projects involving government subsidies:
Unit: RMB
| Item in debt | Opening balance | Increase in current period | Included in non-business income | Account to other income in this period | Amount of cost and expense written down in current period | Other changes | Closing balance | Related to assets or income |
| Tianjin CSG Golden Sun Project (i) | 46,967,335 | 1,687,446 | 45,279,889 | Assets related | ||||
| Dongguan CSG Golden Sun Project (ii) | 37,826,250 | 1,375,500 | 36,450,750 | Assets related | ||||
| Hebei CSG Golden Sun Project (iii) | 38,500,000 | 1,375,000 | 37,125,000 | Assets related | ||||
| Xianning CSG Golden Sun Project (iv) | 41,921,917 | 1,515,250 | 40,406,667 | Assets related | ||||
| Infrastructure compensation for Wujiang CSG Glass Co., Ltd (v) | 31,545,822 | 2,020,769 | 29,525,053 | Assets related | ||||
| Qingyuan Energy-saving project (vi) | 15,849,167 | 1,035,365 | 14,813,802 | Assets related | ||||
| Yichang Silicon products project (vii) | 16,171,875 | 1,406,250 | 14,765,625 | Assets related | ||||
| Yichang CSG silicon slice auxiliary project (viii) | 15,275,961 | 560,194 | 14,715,767 | Assets related | ||||
| Sichuan energy-saving glass project (ix) | 7,167,420 | 827,010 | 6,340,410 | Assets related | ||||
| Group coating film experimental project (x) | 3,758,760 | 931,190 | 2,827,570 | Assets related | ||||
| Yichang CSG Display project (xi) | 45,767,648 | 1,267,240 | 44,500,408 | Assets related |
| Xianning Photoelectric project (xii) | 7,280,000 | 260,000 | 7,020,000 | Assets related | ||||
| Group talent fund project (xiii) | 171,000,000 | 171,000,000 | Income related | |||||
| Others | 34,893,402 | 3,000,000 | 2,857,177 | 35,036,225 | Assets and income related | |||
| Total | 513,925,557 | 3,000,000 | 17,118,391 | 499,807,166 |
Other statement:
(i)The allowance was granted by Tianjin Municipal Government. The allowance was used for establishing PV power station byTianjin CSG Energy-Saving Glass Co., Ltd. The facilities belonged to Tianjin CSG upon completion. The allowance will be creditedto income 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 Yichang CSG polysilicon 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 polysilicon is entitled to theownership of the facilities， which will be amortised by 16 years according to the useful life of the converting station.
(viii) It represented the government supporting fund obtained by Yichang polysilicon 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 income statementby 16 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 to income
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 Yichang Municipal Government for Yichang CSG Display Company's flat project constructionsupport funds and construction of coil coating three-line project. The grant will be amortised and credited to income statement by 15years.
(xii) It represented the funds granted by Xianning Government of the Project supporting fund for photoconductive glass productionline, which is used to pay for Xianning CSG Glass Co., Ltd. constructing the project of photoelectric optical glass production line. Afterthe completion of the production line, the ownership belongs to Xianning photoelectric. The allowance will be credited to incomestatement in 8 years, the useful life of the production line.
(xiii)The allowance was granted by Administrative Commission of Yichang High-tech Industrial Development Zone. For seniormanagement personnel, engineering technical personnel and senior professional technical team which is working at Yichang or plane tointroduction, fund of RMB171 million was set up, as a special fund for talent introduction and housing resettlement.
30. Share Capital
Unit: RMB
| Opening balance | Changed in the report period (+,-) | Closing balance | |||||
| New issues | Bonusissue | Transferred fromreserves | Others | Sub-total | |||
| Total ofcapital shares | 3,106,915,005 | -36,222,898 | -36,222,898 | 3,070,692,107 | |||
31.Capital surplus
Unit: RMB
| Item | Opening balance | Increased this term | Decreased this term | Closing balance |
| Capital premium (Share premium) | 738,834,850 | 86,222,273 | 652,612,577 | |
| Other capital surplus | -55,615,492 | -55,615,492 | ||
| Total | 683,219,358 | 86,222,273 | 596,997,085 |
On April 28, 2020, the Company held the 11th Meeting of the Eighth Board of Directors and the 11th Meeting of the Eighth Board ofSupervisors, which reviewed and approved the Proposal on Repurchase and Cancellation of Part of Restricted Stocks of RestrictedStock Incentive Plan and the Proposal on Repurchase and Cancellation of Restricted Stocks that HadNot Reached the UnlockingCondition of the ThirdUnlock Period, and agreed to repurchase and cancel the total of 909,936 shares of all restricted stocks heldby14 unqualified original incentives, as well as the total of 35,312,962 shares of 451 incentive objects that did not meet the unlockingconditions of the third unlock period.The independent directors of the Company issued a consent opinion. And on May 21, 2020, theproposals were approved by the 2019 Annual General Meeting of Shareholders. As of June 16, 2020, the Company had completed
the cancellation procedures for the above-mentioned restricted stocks in Shenzhen Branch of China Securities Depository andClearing Corporation Limited.
32. Treasury shares
Unit: RMB
| Item | Opening balance | Increased this term | Decreased this term | Closing balance |
| Obligations of restricted share buybacks(i) | 118,066,397 | 118,066,397 | ||
| Total | 118,066,397 | 118,066,397 |
The Company calculated the amount determined based on the number of restricted shares issued and the corresponding repurchaseprice, and confirmed the liabilities and treasury shares. The decrease in treasury shares was mainly due to the repurchase of therestricted sharesduring the report period.
33. 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: Amount transferred into retained earnings 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 | |||
| I. Other comprehensive income items which can not be reclassified to profit or loss | ||||||||
| II. Other comprehensive income items which will be reclassified to profit or loss | 6,565,864 | 1,366,772 | 1,366,772 | 7,932,636 | ||||
| Differences on translation of foreign currency financial statements | 4,015,864 | 1,366,772 | 1,366,772 | 5,382,636 | ||||
| Finance incentives for | 2,550,000 | 2,550,000 | ||||||
| energy and technical transformation | ||||||||
| Total of other comprehensive income | 6,565,864 | 1,366,772 | 1,366,772 | 7,932,636 |
34. Special reserves
Unit: RMB
| Item | Opening balance | Increased this term | Decreased this term | Closing balance |
| Safety production cost | 11,102,921 | 436,183 | 10,666,738 | |
| Total | 11,102,921 | 436,183 | 10,666,738 |
35. Surplus reserves
Unit: RMB
| Item | Beginning of term | Increased this term | Decreased this term | End of term |
| Statutory surplus reserve | 818,398,718 | 818,398,718 | ||
| Discretionary surplus reserve | 127,852,568 | 127,852,568 | ||
| Total | 946,251,286 | 946,251,286 |
36. Undistributed profits
Unit: RMB
| Item | The current period | The same period of last year |
| Retained earnings at the end of the previous term before adjustment | 4,859,600,841 | 4,486,264,723 |
| Retained earnings at the beginning of this term after adjustment | 4,859,600,841 | 4,486,264,723 |
| Add: net profits belonging to equity holders of the Company | 391,466,723 | 377,342,401 |
| Less:Appropriations to statutory surplus reserve | ||
| Common stock dividends payable | 211,962,885 | 141,207,035 |
| Retained earnings in the end | 5,039,104,679 | 4,722,400,089 |
37. Revenue and cost of sales
Unit: RMB
| Item | Occurred in current term | Occurred in previous term | ||
| Revenue | Cost | Revenue | Cost | |
| Revenue from main operations | 4,384,952,565 | 3,156,673,458 | 4,850,355,669 | 3,668,177,768 |
| Revenue from other operations | 39,268,784 | 2,893,573 | 37,881,909 | 3,199,057 |
| Total | 4,424,221,349 | 3,159,567,031 | 4,888,237,578 | 3,671,376,825 |
38. Tax and surcharge
Unit: RMB
| Item | Occurred in current term | Occurred in previous term |
| City maintenance and construction tax | 13,417,822 | 15,651,946 |
| Educational surcharge | 11,582,943 | 13,026,844 |
| Housing property tax | 14,336,199 | 15,524,671 |
| Land use rights | 6,477,593 | 6,750,190 |
| Environmental protection tax | 3,590,774 | 4,518,549 |
| Others | 2,933,061 | 1,215,797 |
| Total | 52,338,392 | 56,687,997 |
39. Sales Expenses
Unit: RMB
| Item | Occurred in current term | Occurred in previous term |
| Freight expenses | 68,005,806 | 76,898,158 |
| Employee benefits | 65,900,124 | 66,858,153 |
| Entertainment expenses | 5,966,150 | 7,648,722 |
| Business travel expenses | 2,646,504 | 5,382,042 |
| Vehicle use fee | 3,267,556 | 3,898,844 |
| Rental expenses | 3,280,632 | 3,374,917 |
| Depreciation expenses | 464,897 | 446,163 |
| Others | 12,107,865 | 7,996,400 |
| Total | 161,639,534 | 172,503,399 |
40. Administrative Expenses
Unit: RMB
| Item | Occurred in current term | Occurred in previous term |
| Employee benefits | 154,039,065 | 168,542,149 |
| Depreciation expenses | 30,983,197 | 32,466,946 |
| Amortization of intangible assets | 26,914,457 | 26,121,476 |
| General office expenses | 11,476,149 | 9,380,061 |
| Labour union funds | 7,058,240 | 7,121,128 |
| Entertainment fees | 4,133,275 | 5,308,266 |
| Business travel expenses | 1,800,471 | 4,513,036 |
| Utility fees | 2,887,017 | 3,597,714 |
| Vehicle use fee | 2,011,558 | 2,421,233 |
| Consulting advisers | 7,668,560 | 15,564,251 |
| Factory shutdown losses | 42,910,507 | |
| Others | 25,536,911 | 17,826,095 |
| Total | 317,419,407 | 292,862,355 |
41. Research and development expenses
Unit: RMB
| Item | Occurred in current term | Occurred in previous term |
| Research and development expenses | 145,063,647 | 174,276,136 |
| Total | 145,063,647 | 174,276,136 |
42. Finance Expenses
Unit: RMB
| Item | Occurred in current term | Occurred in previous term |
| Interest on borrowings | 157,133,164 | 175,240,871 |
| Less: Capitalised interest | 4,954,200 | 4,209,266 |
| Interest expenses | 152,178,964 | 171,031,605 |
| Less: Interest income | 24,931,363 | 14,923,375 |
| Exchange losses | -499,379 | -1,574,396 |
| Others | 4,994,975 | 4,533,025 |
| Total | 131,743,197 | 159,066,859 |
43. Other income
Unit: RMB
| Source of other gains | Occurred in current term | Occurred in previous term |
| Government subsidy amortization | 17,118,391 | 76,730,356 |
| Industry support funds | 3,698,000 | 14,640,420 |
| Government incentive funds | 13,973,402 | 6,133,101 |
| Research grants | 5,613,820 | 3,859,699 |
| Others | 7,605,713 | 6,391,837 |
| Total | 48,009,326 | 107,755,413 |
44. Credit impairment losses
Unit: RMB
| Item | Occurred in current term | Occurred in previous term |
| Losses on bad debts of other receivables | 4,451 | |
| Losses on bad debts of accounts receivable | 2,957,469 | |
| Total | 2,961,920 |
45. Asset impairment losses
Unit: RMB
| Item | Occurred in current term | Occurred in previous term |
| I. Bad debt loss | 3,765,670 | |
| II. Decline in the value of inventories | -154,053 | |
| Total | -154,053 | 3,765,670 |
46. Asset disposal income
Unit: RMB
| Source of income from assets disposal | Occurred in current term | Occurred in previous term |
| Gains on disposal of assets | -342,005 | 370,969 |
47. Non-operating income
Unit: RMB
| Item | Occurred in current term | Occurred in previous term | Amount of non-recurring gain and loss included in the report period |
| Government subsidy | 100,000 | 100,000 | |
| Compensation income | 580,519 | 2,723,039 | 580,519 |
| Amounts unable to pay | 876,291 | 353,473 | 876,291 |
| Others | 661,321 | 589,803 | 661,321 |
| Total | 2,218,131 | 3,666,315 | 2,218,131 |
Government subsidies included in current profit and loss:
Unit: RMB
| Subsidy projects | Subsidy payer | Reasons for subsidy | Type | Affect the profit and loss of the current year or not | Special subsidy or not | Occurred in current term | Occurred in previous term | Asset related / income related |
| Epidemic prevention subsidy | Shenzhen Luohu District Bureau of industry and information technology | Subsidy | Epidemic prevention subsidy | No | No | 100,000 | 0 | Income related |
48. Non-operating expenses
Unit: RMB
| Item | Occurred in current term | Occurred in previous term | Amount of non-recurring gain and loss included in the report period |
| Donation | 17,496,945 | 1,565,000 | 17,496,945 |
| Compensation | 20,600 | 4,077,304 | 20,600 |
| Others | 18,008 | 650,923 | 18,008 |
| Total | 17,535,553 | 6,293,227 | 17,535,553 |
49. Income tax expenses
(1) List of income tax expenses
Unit: RMB
| Item | Occurred in current term | Occurred in previous term |
| Current income tax expenses | 94,992,504 | 68,977,764 |
| Deferred income tax expenses | -10,877,296 | 7,480,976 |
| Total | 84,115,208 | 76,458,740 |
(2) Adjustment process of accounting profit and income tax expense
Unit: RMB
| Item | Occurred in current term |
| Total profit | 485,992,173 |
| Current income tax expense accounted by tax and relevant regulations | 67,999,384 |
| Costs, expenses and losses not deductible for tax purposes | 387,278 |
| Impact on the use of deductible loss of deferred income tax assets not | -966,760 |
| recognized in previous period | |
| Influence of deductible temporary difference or deductible losses of unrecognized deferred income tax assets | 26,490,713 |
| Balance the previous year income tax adjustment | -6,388,091 |
| Impact of tax incentives | -3,407,316 |
| Income tax expenses | 84,115,208 |
50. Other comprehensive income
See the note for details.
51. Items of the cash flow statement
(1) Other cash received related to operating activities
Unit: RMB
| Item | Occurred in current term | Occurred in previous term |
| Interest income | 24,931,363 | 14,923,375 |
| Government grant | 33,990,935 | 42,825,057 |
| Others | 10,774,006 | 11,580,256 |
| Total | 69,696,304 | 69,328,688 |
(2)Other cash paid related to operating activities
Unit: RMB
| Item | Occurred in current term | Occurred in previous term |
| Freight expenses | 74,815,811 | 89,770,136 |
| General office expenses | 17,610,516 | 16,108,811 |
| Business travel expenses | 6,371,021 | 12,052,639 |
| Entertainment fees | 10,976,482 | 13,964,607 |
| Vehicle use fee | 5,738,312 | 6,995,143 |
| Commission | 4,994,975 | 4,533,025 |
| Insurance | 9,758,524 | 9,534,154 |
| Research and development expenses | 15,358,169 | 16,850,014 |
| Maintenance fee | 10,630,309 | 14,530,543 |
| Rental expenses | 7,252,265 | 5,861,795 |
| Consulting fees | 5,151,892 | 10,062,588 |
| Others | 111,215,442 | 114,284,452 |
| Total | 279,873,718 | 314,547,907 |
(3)Other cash received related to investment activities
Unit: RMB
| Item | Occurred in current term | Occurred in previous term |
| Deposit | 198,380 | 5,471,303 |
| Income from trial production of construction in progress | 27,868,724 | 30,851,703 |
| Recovery of investment funds | 300,000,000 | |
| Total | 328,067,104 | 36,323,006 |
(4)Other cash paid related to investment activities
Unit: RMB
| Item | Occurred in current term | Occurred in previous term |
| Trial production expenditure in construction | 21,848,237 | 44,089,887 |
| Total | 21,848,237 | 44,089,887 |
(5)Other cash received related to financing activities
Unit: RMB
| Item | Occurred in current term | Occurred in previous term |
| Income from financing leases | 200,000,000 | |
| Collect entrusted loan | 300,000,000 | |
| Collection of income tax of dividends of A-share & B-share | 154,376 | |
| Deposit | 298,227 | |
| Total | 298,227 | 500,154,376 |
(6)Other cash paid related to financing activities
Unit: RMB
| Item | Occurred in current term | Occurred in previous term |
| Repay financing leases | 357,808,728 | 515,199,702 |
| Equity incentive repurchase payment | 122,445,171 | 139,978,039 |
| Payment for deposit and margin | 147,843,719 | |
| Payment formargin and fees of loansandbills | 3,050,301 | 5,746,178 |
| Pay individual income tax on dividends of A and B shares | 53,939 | |
| Total | 483,358,139 | 808,767,638 |
52. Supplement information to the cash flow statement
(1) Supplement information to the cash flow statement
Unit: RMB
| Supplementary Info. | Amount of this term | Amount of last term |
| 1. Reconciliation from net profit to cash flows from operating activities | -- | -- |
| Net profit | 401,876,965 | 386,739,067 |
| Add: Provisions for assets impairment | -154,053 | 3,765,670 |
| Credit impairment loss | 2,961,920 | |
| Depreciation of fixed assets | 430,017,802 | 445,268,018 |
| Amortization of intangible assets | 26,914,457 | 26,121,476 |
| Amortization of long-term prepaid expenses | 821,736 | 881,546 |
| Losses on disposal of fixed assets intangible assets and other long-term assets (―- ―for gains) | 342,005 | -370,969 |
| Finance expenses (―- ―for gains) | 152,178,964 | 171,031,605 |
| Decrease in deferred tax assets (―- ―for increase) | -13,637,865 | -2,206,249 |
| Increase of deferred income tax liability (―- ―for decrease) | 2,760,569 | 9,687,225 |
| Decrease of inventory (―- ―for increase) | -220,040,002 | -133,241,843 |
| Decrease of operational receivable items (―- ―for increase) | -154,063,031 | -157,088,345 |
| Increase of operational payable items (―- ―for decrease) | 150,101,105 | 1,853,269 |
| Others | -436,183 | 15,541,995 |
| Net cash flow generated by business operation | 779,644,389 | 767,982,465 |
| 2. Significant investment and financing activities that do not involve cash receipts and payments: | -- | -- |
| 3. Net change of cash and cash equivalents | -- | -- |
| Balance of cash at period end | 3,071,655,971 | 1,744,240,866 |
| Less: Initial balance of cash | 1,831,835,030 | 2,225,126,913 |
| Net increasing of cash and cash equivalents | 1,239,820,941 | -480,886,047 |
(2) Formation of cash and cash equivalents
Unit: RMB
| Item | Closing balance | Opening balance |
| I. Cash | 3,071,655,971 | 1,831,835,030 |
| Incl: Cash on hand | 3,393 | 4,268 |
| Bank deposits that can be readily drawn on demand | 2,891,652,578 | 1,781,830,762 |
| Other cash balances that can be readily drawn on demand | 180,000,000 | 50,000,000 |
| II. Balance of cash and cash equivalents at the end of the period | 3,071,655,971 | 1,831,835,030 |
53. Notes to items in statement of changes in owner's equity
□ Applicable √ Not applicable
54. Assets with restricted ownership or use rights
Unit: RMB
| Item | Ending book value | Reason for restriction |
| Monetary assets | 3,317,673 | Restricted deposit flow |
| Fixed assets | 478,620,783 | Limited finance lease |
| Total | 481,938,456 | -- |
55. 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 | -- | -- | 50,983,859 |
| Incl: HKD | 9,220,760 | 0.9134 | 8,422,242 |
| USD | 5,973,317 | 7.0795 | 42,288,101 |
| EUR | 33,653 | 7.9610 | 267,908 |
| JPY | 26,261 | 0.0658 | 1,728 |
| AUD | 797 | 4.8657 | 3,880 |
| Accounts receivable | -- | -- | 93,365,388 |
| Incl: HKD | 2,462,433 | 0.9134 | 2,249,186 |
| USD | 11,795,686 | 7.0795 | 83,507,560 |
| EUR | 955,739 | 7.9610 | 7,608,642 |
| Short-term borrowings | -- | -- | 97,903,962 |
| Incl: HKD | 75,000,000 | 0.9134 | 68,505,000 |
| USD | 4,152,689 | 7.0795 | 29,398,962 |
| Accounts payable | -- | -- | 39,913,201 |
| Incl: HKD | 91,624 | 0.9134 | 83,689 |
| USD | 4,700,244 | 7.0795 | 33,275,379 |
| EUR | 770,864 | 7.9610 | 6,136,851 |
| JPY | 6,341,672 | 0.0658 | 417,282 |
| Contractual liabilities | -- | -- | 27,174,183 |
| Incl: HKD | 11,673,237 | 0.9134 | 10,662,335 |
| USD | 2,324,908 | 7.0795 | 16,459,186 |
| EUR | 6,615 | 7.9610 | 52,662 |
(2) Description of overseas business entities, including for important overseas business entities, their mainoverseas business locations, recording currency and selection basis shall be disclosed, as well as the reasonsfor changes in recording currency if recording currency changed.
□ Applicable √Not applicable
56. Hedging
□ Applicable √Not applicable
57. Government subsidy
(1) Basic situation of government subsidies
Unit: RMB
| Type | Amount | Presentation project | Amount included in current profit and loss |
| Government subsidy amortization | 17,118,391 | Other income | 17,118,391 |
| Other government subsidies | 30,890,935 | Other income | 30,890,935 |
| Other government subsidies | 100,000 | Non operating income | 100,000 |
| Total | 48,109,326 | 48,109,326 |
58. Others
□ Applicable √Not applicable
VIII. The changes of consolidation scope
1. Changes in scope of consolidation for other reasons
On January7, 2020, the Group set up a subsidiary, CSG (Thailand) Co., Ltd. As of June 30, 2020, the Group has invested USD808,000. The Group owns 100% of its equity.
On February5, 2020, the Group set up a subsidiary, Anhui CSG New Energy Materials Technology Co., Ltd.As of June 30, 2020, theGroup has invested RMB 3million. The Group owns 100% of its equity.
On February8, 2020, the Group set up a subsidiary, Anhui CSG New Quartz Material Co., Ltd.As of June 30, 2020, As of June 30,2020, the Group has invested RMB 3million. The Group owns 100% of its equity.
On February10, 2020, the Group set up a subsidiary, Shenzhen CSG Medical Technology Co., Ltd.As of June 30, 2020, As of June30, 2020, the Group has invested RMB 20 million. The Group owns 100% of its equity.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 | Chengdu, PRC | Chengdu, PRC | Development, production and sales of special glass | 75% | 25% | Establishment |
| Sichuan CSG Energy Conservation | Chengdu, PRC | Chengdu, PRC | Development, production and sales of special glass and processing of glass | 75% | 25% | Split-off |
| Tianjin Energy Conservation | Tianjin, PRC | Tianjin, PRC | Development, production and sales of special glass | 75% | 25% | Establishment |
| Dongguan CSG Engineering | Dongguan, PRC | Dongguan, PRC | Intensive processing of glass | 75% | 25% | Establishment |
| Dongguan CSG Solar | Dongguan, PRC | Dongguan, PRC | Production and sales of solar glass | 75% | 25% | Establishment |
| Dongguan CSG PV-tech | Dongguan, PRC | Dongguan, PRC | Production and sales of hi-tech green battery and components | 100% | Establishment | |
| Yichang CSG Polysilicon | Yichang, PRC | Yichang, PRC | Production and sales of high-purity silicon materials | 75% | 25% | Establishment |
| Wujiang CSG Engineering | Wujiang, PRC | Wujiang, PRC | Intensive processing of glass | 75% | 25% | Establishment |
| Hebei CSG | Yongqing, PRC | Yongqing, PRC | Production and sales of special glass | 75% | 25% | Establishment |
| Wujiang CSG | Wujiang, PRC | Wujiang, PRC | Production and sales of special glass | 100% | Establishment | |
| China Southern Glass (Hong Kong) Limited | Hong Kong, PRC | Hong Kong, PRC | Investment holding | 100% | Establishment | |
| Hebei Shichuang | Yongqing, PRC | Yongqing, PRC | Production and sales of ultra-thin electronic glass | 100% | Establishment | |
| Xianning CSG | Xianning, PRC | Xianning, PRC | Production and sales of special glass | 75% | 25% | Establishment |
| Xianning CSG Energy-Saving | Xianning, PRC | Xianning, PRC | Intensive processing of glass | 75% | 25% | Split-off |
| Qingyuan CSG Energy-Saving | Qingyuan, PRC | Qingyuan, PRC | Production and sales of ultra-thin electronic glass | 100% | Establishment | |
| Shenzhen CSG Financial Leasing Co., Ltd. | Shenzhen, PRC | Shenzhen, PRC | Finance leasing, etc. | 75% | 25% | Establishment |
| Jiangyou CSG Mining Development Co., Ltd. | Jiangyou, PRC | Jiangyou, PRC | Production and sales of silica and its by-products | 100% | Establishment | |
| Shenzhen CSG PV Energy Co., Ltd. | Shenzhen, PRC | Shenzhen, PRC | Investment management of photovoltaic plant | 100% | Establishment | |
| Qingyuan CSG New Energy Co., Ltd. | Qingyuan, PRC | Qingyuan, PRC | Clean energy development, photovoltaic power generation | 100% | Establishment | |
| Suzhou CSG PV-tech Co., Ltd. | Wujiang, PRC | Wujiang, PRC | Clean energy development, photovoltaic power generation | 100% | Establishment | |
| Wujiang CSG New Energy Co., Ltd. | Wujiang, PRC | Wujiang, PRC | Clean energy development, photovoltaic power generation | 100% | Establishment | |
| Yichang CSG New Energy Co., Ltd | Yichang, PRC | Yichang, PRC | Clean energy development, photovoltaic power generation | 100% | Establishment | |
| Shenzhen CSG Display | Shenzhen, PRC | Shenzhen, PRC | Production and sales of display component products | 60.8% | Acquisition | |
| Xianning CSG Photoelectric | Xianning, PRC | Xianning, PRC | Photoelectric glass and high aluminium glass | 50% | 50% | Acquisition |
| ZhaoqingEnergy-SavingGlass | Zhaoqing, PRC | Zhaoqing, PRC | Production and sales of special glass | 100% | Establishment | |
| Zhaoqing Automobile Glass | Zhaoqing, PRC | Zhaoqing, PRC | Production and sales of special glass | 100% | Establishment | |
| Shenzhen CSG Medical | Shenzhen, PRC | Shenzhen, PRC | Sales, research and development of medical masks, etc | 100% | Establishment | |
| Anhui CSG New Energy Materials | Anhui, PRC | Anhui, PRC | Develop, manufacture and sell key materials or complete sets of equipment for new energy power generation | 100% | Establishment | |
| Anhui CSG New Quartz material | Anhui, PRC | Anhui, PRC | Quartzite mining, processing, purification, sales | 100% | Establishment |
(2)Important non-wholly owned subsidiary
Unit: RMB
| Subsidiaries | Shareholding of minority shareholders | Total profit or loss attributable to minority shareholders for the year ended 30 June 2020 | Dividends distributed to minority interests for the year ended 30 June 2020 | Minority interest as at 30 June 2020 |
| Shenzhen CSG Display | 39.20% | 9,831,670 | 350,797,051 |
(3) Major financial information of important non-wholly owned subsidiaries
Unit: RMB
| Name of Subsidiary | Closing balance | |||||
| Current assets | Non-current assets | Total assets | Current liabilities | Non-current liabilities | Total liabilities | |
| Shenzhen CSG Display | 225,448,197 | 1,417,146,203 | 1,642,594,400 | 613,555,840 | 93,098,021 | 706,653,861 |
| Opening balance | ||||||
| Current assets | Non-current assets | Total assets | Current liabilities | Non-current liabilities | Total liabilities | |
| 215,814,081 | 1,426,057,340 | 1,641,871,421 | 612,571,719 | 118,439,954 | 731,011,673 | |
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 | 212,884,437 | 25,080,790 | 25,080,790 | 61,513,296 | 276,594,464 | 22,096,117 | 22,096,117 | 47,005,530 |
2. Equity in structured entities not included in the consolidated financial statementsRelated description of structured entities not included in the scope of consolidated financial statements:
□ Applicable √Not applicable
3. Other
□ Applicable √Not applicable
X. Risk related to financial instrumentThe 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 inRMB. 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 HKD. The Group monitors the scale of foreign currency transactions, foreign currency assets and liabilities, andadjusts settlement currency of export business, to furthest reduce the currency risk.
As at 30 June 2020, the carrying amounts in RMB equivalent of the Group’s assets and liabilities denominated in foreign currenciesare summarized below:
| 30 June 2020 | ||||
| USD | HKD | Others | Total | |
| Financial assets denominated in foreign currency- | ||||
| Cash at bank and on hand | 42,288,101 | 8,422,242 | 273,516 | 50,983,859 |
| Receivables | 83,507,560 | 2,249,186 | 7,608,642 | 93,365,388 |
| Total | 125,795,661 | 10,671,428 | 7,882,158 | 144,349,247 |
| Financial liabilities denominated in foreign currency | ||||
| Short-term borrowings | 29,398,962 | 68,505,000 | 97,903,962 | |
| Payables | 33,275,379 | 83,689 | 6,554,133 | 39,913,201 |
| Total | 62,674,341 | 68,588,689 | 6,554,133 | 137,817,163 |
| 31 December 2019 | ||||
| USD | HKD | Others | Total | |
| Financial assets denominated in foreign currency- | ||||
| Cash at bank and on hand | 41,907,573 | 3,907,829 | 354,589 | 46,169,991 |
| Receivables | 80,789,758 | 1,487,715 | 7,527,045 | 89,804,518 |
| Total | 122,697,331 | 5,395,544 | 7,881,634 | 135,974,509 |
| Financial liabilities denominated in foreign currency | ||||
| Short-term borrowings | 4,938,410 | 67,185,000 | 72,123,410 | |
| Payables | 39,609,462 | 275 | 11,628,253 | 51,237,990 |
| Total | 44,547,872 | 67,185,275 | 11,628,253 | 123,361,400 |
As at 30 June 2020, if the currency had strengthened/weakened by 10% against the USD while all other variables had been heldconstant, the Group’s net profit for the year would have been approximately RMB5,365,312 lower/higher (31 December 2019:
approximately RMB6,642,704 lower/higher) for various financial assets and liabilities denominated in USD.
As at 30 June 2020, if the currency had strengthened/weakened by 10% against the HKD while all other variables had been heldconstant, the Group’s net profit for the year would have been approximately RMB4,922,967 higher/lower (31 December 2019:
approximately RMB5,252,127higher/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 interestbearing 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 ratecontracts depending on the prevailing market conditions. As at 30 June 2020, the Group’s long-term interest-bearing debt at variablerates and fixed rates as illustrated below:
| Type | 30 June 2020 | 31 December 2019 |
| Debt at fixed rates | 2,414,353,139 | 951,975,000 |
| Debt at variable rates | 252,500,000 | 368,250,000 |
| Total | 2,666,853,139 | 1,320,225,000 |
The Group continuously monitors the interest rate position of the Group. Increases in interest rates will increase the cost of newborrowing 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 marketconditions, 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, otherreceivables.
The Group expects that there is no significant credit risk associated with cash at bank since they are mainly deposited at state-ownedbanks and other medium or large size listed banks. Management does not expect that there will be any significant losses fromnon-performance by these counterparties. Furthermore, as the Group’s bank acceptance notes receivable are generally accepted bythe state-owned banks and other large and medium listed banks, 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. The
credit 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-termliquidity 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 2020, the Group had net current liabilities of approximately RMB161million and committed capital expenditures ofapproximately RMB 550million. 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;(c) The Group will closely monitor 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 2020 | |||||
| Within 1 year | 1 to 2 years | 2 to 5 years | Over 5 years | Total | |
| Short-term borrowings | 1,628,874,284 | 1,628,874,284 | |||
| Notes payable | 187,639,865 | 187,639,865 | |||
| Accounts payable | 1,267,881,055 | 1,267,881,055 | |||
| Other payables | 270,701,826 | 270,701,826 | |||
| Other current liabilities | 300,000 | 300,000 | |||
| Non-current liabilities due within one year | 2,144,276,826 | 2,144,276,826 | |||
| Long-term payables | 53,006,500 | 53,006,500 | |||
| Long-term borrowings | 31,768,162 | 647,116,172 | 17,081,456 | 23,994,667 | 719,960,457 |
| Bonds payable | 120,000,000 | 120,000,000 | 2,088,109,589 | 2,328,109,589 | |
| Total | 5,651,442,018 | 820,122,672 | 2,105,191,045 | 23,994,667 | 8,600,750,402 |
| 31 December 2019 | |||||
| Within 1 year | 1 to 2 years | 2 to 5 years | Over 5 years | Total | |
| Short-term borrowings | 2,279,068,830 | 2,279,068,830 | |||
| Notes payable | 232,063,968 | 232,063,968 | |||
| Accounts payable | 1,100,531,779 | 1,100,531,779 | |||
| Other payables | 351,374,775 | 351,374,775 | |||
| Other current liabilities | 300,000 | 300,000 | |||
| Non-current liabilities due within one year | 1,749,763,512 | 1,749,763,512 | |||
| Long-term payables | 87,240,529 | 87,240,529 | |||
| Long-term borrowings | 81,253,313 | 1,338,406,582 | 19,752,667 | 1,439,412,562 | |
| Total | 5,794,356,177 | 1,425,647,111 | 19,752,667 | 7,239,755,955 |
XI. Disclosure of fair value
Based on the lowest level input that is significant to the fair value measurement in its entirety, the fair value hierarchy has thefollowing levels:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly orindirectly.Level 3: Unobservable inputs for the asset or liability.(a) Assets continuously measured at fair valueBy June 30, 2020, the Group’s using assets and liabilities measured at fair value are listed three levels as followings:
| 30 June 2020 | ||||
| Level 1 | Level 2 | Level 3 | Total | |
| Measured at fair value through other comprehensive income | ||||
| Receivables Financing | 303,344,206 | 303,344,206 | ||
| Total | 303,344,206 | 303,344,206 | ||
(b) Assets and liability that not measured but disclosed at fair valueThe group’s financial assets and financial liabilities measured at amortized cost mainly include: accounts receivable, short-termborrowings, accounts payable, long term borrowings, bonds payable, long-term payables, ect.Except for financial liabilities listed below, book value of the other financial assets and liabilities not measured at fair value is areasonable approximation of their fair value.
| 30 June 2020 | 31 December 2019 | |||
| Carrying amount | Fair value | Carrying amount | Fair value | |
| Financial liabilities | ||||
| Bonds payable | 1,991,652,870 | 1,991,852,035 | ||
| Medium term notes | 800,000,000 | 807,757,600 | ||
| Total | 1,991,652,870 | 1,991,852,035 | 800,000,000 | 807,757,600 |
The fair values of bonds payable and medium-term notes are the present value of the contractually determined stream of future cashflows at the rate of interest applied at that time by the market to instruments of comparable credit status and providing substantiallythe same cash flows on the same terms, therefore they belong to Level 2.
XII. Related party and related Transaction
1. Information of the parent company
The Company regards no entity as the parent company.
2. The subsidiaries
The general information and other related information of the subsidiaries are set out in attached note.
3. Joint venture of the Company
Nil.
4. Other related parties
| Other related parties | Relationship between other related parties and the enterprise |
| Shenzhen jushenghua Co., Ltd. | Party acting in concert of the Company's largest shareholder |
| Foresea Life Insurance Co., Ltd. | The Company's largest shareholder |
| Xinjiang Qianhai United Property Insurance Co., Ltd. | Related party of the shareholder of the Company |
5. Related party transactions
(1)Related transactions for the purchase and sale of goods, provision and receipt of services
√ Applicable □ Not applicable
| Related party | Related party transactions | Amount incurred in the current period | Amount incurred in the previous period |
| Shenzhen jushenghua Co., Ltd. | Sale ofmasks | 12,118,000 | |
| Other related parties | Sale ofmasks and others | 6,222,400 | |
| Total | 18,340,400 |
(2) Other related transactions
Unit: RMB
| Related parties | Related party transactions | Amount incurred in the current period | Amount incurred in the previous period |
| Foresea Life Insurance Co., Ltd. | Purchase life insurance | 1,903,094 | 527,941 |
| Xinjiang Qianhai United Property Insurance Co., Ltd. | Purchase auto insurance, property insurance | 178,374 | 43,224 |
| Total | 2,081,468 | 571,165 |
6. Accounts receivable and payable of related parties
(1) Receivables
□ Applicable √ Not applicable
(2) Payables
□ Applicable √ Not applicable
7. Commitment of related parties
□ Applicable √ Not applicable
8. Others
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:
| Related parties | Related party transactions | Restrictive terms on borrowings | Year of 2020 | Year of 2019 |
| Shenzhen Jushenghua Co., Ltd. | Facility of interest-free loans provided for the Company | Nil | 2,000,000,000 | 2,000,000,000 |
On 22 November 2016, the Company received a letter from its shareholder, Jushenghua, stating that to support the Group’s steadyoperation and development, Jushenghua, as the shareholder of the Company, would like to offer interest-free borrowings with thetotal amount of RMB 2 billion to the Company or through related parties designated by it. For any borrowing drawn, its repaymentdate is negotiated by the Company and Jushenghua upon withdrawal. When a borrowing is due, if an extension is needed, theCompany can apply to the actual lender based on the Company’s operation; where the actual lender agrees with the extensionapplication, the term of the borrowing is extended accordingly. The shareholder provided nil interest free loan to the group in thereport period.
XIII. Share Payment
1. Overall situation of share payment
√ Applicable □ Not applicable
Unit: RMB
| The total number of equity instruments granted by the company in the current period | |
| Total amount of various equity instruments that the company exercises during the current period | |
| The total number of various equity instruments that have repurchased in the current period | 36,222,898 |
| The scope of the company’s outstanding share options and the remaining duration of the contract at the end of the period | |
| The scope of the company's exercise price of other equity instruments at the end of the period and the remaining duration of the contract at the end of the period |
On December 11, 2017, reviewed and approved by the Group's eighth session of the Board of Directors, the Group implemented the2017 A Share Restricted Stock Incentive Plan. The incentive targets for the restricted shares granted under this plan include companydirectors and senior management personnel, a total of 454 core management teams, company technology members and mainemployees. The first grant date of this restricted stock was December 11, 2017. The company granted 97,511,654 restricted shares forthe first time to 454 incentive targets. The initial grant price was RMB 4.28 per share. Reserved restricted stock ending balance17,046,869 shares, the grant price has not been determined. The shares granted of the first time has been registered and listed.
By the 2nd temporary meeting of shareholders held on 6 August 2018, the company decided to repurchase and cancel thestill-restricted shares which have already been granted to and held by 15 recipients no longer qualified for 2017 A Share RestrictedStock Incentive Plan due to either resignation or position adjustment. A total of 3,319,057 shares were repurchased and cancelled,and the company has finished above cancellations of the restricted shares by September 10, 2018.
The Company held the 8th temporary meeting of the Board on September 13, 2018, which reviewed and approved September 13,2018 to be the shares granting date and 75 recipients to be granted 9,826,580 restricted shares in total.
The Company held the 8th temporary meeting of the Board on December 12, 2018, which reviewed and approved the releasingconditions on the first- time expiring trading restrictions of the initial part of the incentive plan on restricted shares from ordinary A.A total of 431 recipients of the incentive plan were able to fullfil the conditions. The amount of 43,353,050 shares could be releasedfrom restrictions. The unlock date of the restricted stocks, which was the date of listing, was December 21, 2018.
On December 12, 2018, the company held the 8th meeting of the 8th Board of directors, and the meeting of the 8th board ofsupervisors. The meetings approved the ―Proposal concerning the repurchase and cancellation of some restricted shares fromthe ’incentive plan’ of restricted shares‖, and the meetings approved to repurchase and cancel a total of 436,719 restricted shareswhich have already been granted to and held by 8 recipients who are unqualified for the ―incentive plan‖. This was reviewed andapproved by the third temporary meeting of shareholders on December 28, 2018. By June 18, 2019, the cancellation procedure ofabove restricted shares had been accomplished.
On April 16, 2019, the company held the 8th meeting of the 8th Board of directors, and the 8th meeting of the 8th Board ofsupervisors. The meetings approved the ―Proposal concerning the repurchase and cancellation of some restricted shares fromthe ’incentive plan’ of restricted shares‖, and the ―Proposal concerning the repurchase and cancellation of restricted shares failing tomeet the second-term unlocking condition‖. The meetings approved to repurchase and cancel a total of 3,473,329 restricted shareswhich have already been granted to and held by 14 recipients who are unqualified for the ―incentive plan‖, and repurchase and cancela total of 33,734,276 restricted shares failing to meet the second-term unlocking condition from 483 ―incentive‖ recipients.Independent directors agreed with this and it was approved by the annual general meeting of shareholders on May 9, 2019. By June18, 2019, the cancellation procedure of above restricted shares had been accomplished.
On September 16 2019, the Company held the 8th temporary meeting of the Board and the 8th temporary meeting of Supervisors.The meetings reviewed and approved the ―Proposal concerning the repurchase and cancellation of some restricted shares fromthe ’incentive plan’ of restricted shares‖. The meetings approved to repurchase and cancel a total of 1,281,158 restricted shares whichhave already been granted to and held by 18 recipients unqualified for the ―incentive plan‖, this was reviewed and approved by the4th temporary meeting of shareholders on October 10 2019. By June 16, 2020, the cancellation procedure of above restricted shareshad been accomplished.
On September 16 2019, the Company held the 8th temporary meeting of the Board and the 8th temporary meeting of Supervisors,which reviewed and approved the releasing conditions on the first-time expiring trading restrictions of the initial part of the incentiveplan on restricted shares from ordinary A. In addition to the fact that 3 recipients did not have the conditions to unlock restrictedstocksdue to their resignation, a total of 71 recipients of the incentive plan were able to fulfil the conditions.The amount of 3,909,350shares could be released from restrictions. The restricted shares were released and listed by company on September 25, 2019.
On April 28, 2020, the company held the 11th meeting of the 8th board of directors, and the 11th meeting of the 8th board ofsupervisors. The meetings approved the ―Proposal concerning the repurchase and cancellation of some restricted shares fromthe ’incentive plan’ of restricted shares‖, and the ―Proposal concerning the repurchase and cancellation of restricted shares failing tomeet the third-term unlocking condition‖. The meetings approved to repurchase and cancel a total of 909,936 restricted shares whichhave already been granted to and held by 14 recipients who are unqualified for the ―incentive plan‖, and repurchase and cancel a totalof 35,312,962 restricted shares failing to meet the second-term unlocking condition from 451 ―incentive‖ recipients. Independentdirectors agreed with this and it was approved by the annual general meeting of shareholders on May 21, 2020. By June 16 2020, thecancellation procedure of above restricted shares had been accomplished.
This incentive plan is valid for 48 months from the date of grant of the restricted stock to the date of unlocking of all restricted stocksor the completion of repurchase and cancellation. During the unlocking/exercise period, if the unlocking/exercise condition specifiedin the incentive plan is reached, the restricted stock granted is unlocked in three phases after 12 months from the grant date.The unlock period is shown in the following table:
| Unlock Schedule | Unlock Time | Unlock Ratio |
| First unlock | from the date of the first transaction 12 months after the award date to the date of the last transaction within 24 months from the grant date. | 40% |
| Second unlock | from the date of the first trading day 24 months after the grant date to the date of the last trading day within 36 months from the grant date | 30% |
| Third unlock |
2. Equity-settled share payment
√ Applicable □ Not applicable
Unit: RMB
30%Method for Determining the Fair Value of Equity Instruments on the Grant Date
| Method for Determining the Fair Value of Equity Instruments on the Grant Date | Black-Scholes Model |
| Determination of the number of vesting equity instruments | Based on the latest information on the change in the number of exercisable rights and the completion of performance indicators, the number of equity instruments that are expected to be exercised is revised. |
| Reasons for significant differences between current estimates and previous estimates | Not applicable |
| Cumulative amount of equity-settled share-based payment in capital reserves | 128,276,983 |
| Total equity confirmed by equity-settled share-based payment in this period |
According to the relevant provisions of Accounting Standards for Business Enterprises No. 11 - Share Payment and EnterpriseAccounting Standard No. 22 - Recognition and Measurement of Financial Instruments, the Group uses the Black-Scholes model (BSmodel) as a pricing model, deducting incentive objects. The fair value of the restricted stock will be used after the lock-in costs thatare required to obtain the rational expected return from the sales restriction period are lifted in the future. The Group will, on eachbalance sheet date of the lock-in period, revise the number of restricted stocks that are expected to be unlockable based on the newlyobtained changes in the number of unlockable persons and performance indicators, and follow the fair value of the restricted stockgrant date. The services obtained during the current period are included in the relevant costs or expenses and capital surplus.
The Group actually granted restricted stocks of 97,511,654 shares in 2017, and the total fair value of the equity instruments grantedto the incentive target for the first day of grant was RMB 289,519,900, the total fair value as the total cost of the company's equityincentive plan will be confirmed in stages according to the unlocking/exercise ratio during the implementation of the equity incentiveplan, and will be included in the "management fees and Construction in progress and capital surplus-other capital surplus " of eachperiod accordingly.
By the 2nd temporary meeting of shareholders held on 6 August 2018, the company decided to repurchase and cancel thestill-restricted shares which have already been granted to and held by 15 recipients no longer qualified for 2017 A Share RestrictedStock Incentive Plan due to either resignation or position adjustment. A total of 3,319,057 shares were repurchased and cancelled,and the company has finished above cancellations of the restricted shares by September 10, 2018.
The Company held the 8th temporary meeting of the Board on September 13, 2018, which reviewed and approved September 13,2018 to be the shares granting date and 75 recipients to be granted 9,826,580 restricted shares in total.
The Company held the 8th temporary meeting of Board of Directors on December 12, 2018, which reviewed and approved thereleasing conditions on the first-time expiring trading restrictions of the initial part of the incentive plan on restricted shares fromordinary A during 2017. A total of 431 recipients of the incentive plan were able to fullfil the conditions. The amount of 43,353,050shares could be released from restrictions. The restricted shares was released and listed by the Company on December 21, 2018.
On December 12, 2018, the company held the 8th meeting of the 8th Board of Directors, and the 8th meeting of the 8th Board ofSupervisors. The meetings approved the ―Proposal concerning the repurchase and cancellation of some restricted shares fromthe ’incentive plan’ of restricted shares‖, and the meetings approved to repurchase and cancel a total of 436,719 restricted shareswhich have already been granted to and held by 8 recipients who are unqualified for the ―incentive plan‖. This was reviewed andapproved by the third temporary meeting of shareholders on December 28, 2018. The cancellations of above restricted shares havebeen finished.
In addition, according to the Group’s performance in 2018, the unlocking conditions for the first post lock-up period for the restrictedshares incentive plan for 2017 and for the second post lock-up period for the restricted shares incentive plan for 2018 were not met.Therefore, by year end, expenses for the second post lock-up period for the ordinary A restricted shares was reduced by RMB41,856,285.
On April 16, 2019, the company held the 8th meeting of the 8th Board of Supervisors, and the 8th meeting of the 8th Board ofSupervisors. The meetings approved the ―Proposal concerning the repurchase and cancellation of some restricted shares from
the’incentive plan’ of restricted shares‖, and the ―Proposal concerning the repurchase and cancellation of restricted shares failing tomeet the second-term unlocking condition”. The meetings approved to repurchase and cancel a total of 3,473,329 restricted shareswhich have already been granted to and held by 14 recipients who are unqualified for the ―incentive plan‖, and repurchase and cancela total of 33,734,276 restricted shares failing to meet the second-term unlocking condition from 483 ―incentive‖ recipients.Independent directors agreed with this and it was approved by the annual general meeting of shareholders on May 9, 2019. By June18, 2019, the cancellations procedure of above restricted shares had been accomplished.
On September 16, 2019, the Company held the 8th temporary meeting of Board of Directors and the 8th temporary meeting of Boardof Supervisors. The meetings reviewed and approved the ―Proposal concerning the repurchase and cancellation of some restrictedshares from the ’incentive plan’ of restricted shares‖. The meetings approved to repurchase and cancel a total of 1,281,158 restrictedshares which have already been granted to and held by 18 recipients unqualified for the ―incentive plan‖, this was reviewed andapproved by the 4th temporary meeting of shareholders on October 10 2019. By June 16, 2020, the cancellations procedure of aboverestricted shares had been accomplished.
On September 16, 2019, the Company held the 8th temporary meeting of Board of Directors and the 8th temporary meeting of Boardof Supervisors, which reviewed and approved the releasing conditions on the first-time expiring trading restrictions of the initial partof the incentive plan on restricted shares from ordinary A. In addition to the fact that 3 recipients did not have the conditions tounlock restricted stocksdue to their resignation, a total of 71 recipients of the incentive plan were able to fulfil the conditions. Theamount of 3,909,350 shares could be released from restrictions. The restricted shares were released and listed by the company onSeptember 25, 2019.
On April 28, 2020, the company held the 11th meeting of the 8th Board of Directors, and the 11th meeting of the 8th board of Boardof Supervisors. The meetings approved the ―Proposal concerning the repurchase and cancellation of some restricted shares fromthe ’incentive plan’ of restricted shares‖, and the ―Proposal concerning the repurchase and cancellation of restricted shares failing tomeet the third-term unlocking condition”. The meetings approved to repurchase and cancel a total of 909,936 restricted shares whichhave already been granted to and held by 14 recipients who are unqualified for the ―incentive plan‖, and repurchase and cancel a totalof 35,312,962 restricted shares failing to meet the second-term unlocking condition from 451 ―incentive‖ recipients. Independentdirectors agreed with this and it was approved by the annual general meeting of shareholders on May 21, 2020. By June 16, 2020, thecancellations procedure of above restricted shares had been accomplished.
3. Share payment in cash
□Applicable √Not applicable
4. Modification and termination of share based payment
□Applicable √Not applicable
5. Others
□Applicable √Not applicable
XIV. Commitments and contingencies
1. Significant commitments
(1) Capital commitments
Capital expenditures contracted for by the Group at the balance sheet date but are not yet necessary to be recognized on the balancesheet are as follows:
| Item | 30 June 2020 | 31 December 2019 |
| Buildings, machinery and equipment | 550,172,794 | 491,835,351 |
(2) Operating lease commitments
The future minimum lease payments due under the signed irrevocable operating leases contracts are summarized as follows:
| 30 June 2020 | 31 December 2019 |
| Within 1 year | 3,583,635 | 2,457,100 |
| 1 to 2 years | 903,456 | 1,412,642 |
| 2 to 3 years | 54,000 | 652,804 |
| Over 3 years | 60,000 | |
| Total | 4,541,091 | 4,582,546 |
2. Segment information
(1) Definition foundation and accounting policy of segment
The Group's business activities are categorised by product and service as follows:
Glass segment, engaged in production and sales of float glass and engineering glass and other building energy - saving materials, thesilica for the production thereof, etc.Solar energy segment, engaged in manufacturing and sales of polysilicon and solar battery and applications, etc.Electronic glass and display segment is responsible for production and sales of display components and special ultra-thin glassproducts, etc.
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 Estimates 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 allocated
based on the operations of the segment. Expenses indirectly attributable to each segment are allocated to the segments based on theproportion of each segment’s revenue.
(2)Financial information of segment
Unit: RMB
| Item | Glass industry | Electronic glass and display | Solar energy and other industries | Unallocated | Elimination | Total |
| Revenue from external customers | 3,575,677,167 | 402,961,663 | 439,860,149 | 5,722,370 | 4,424,221,349 | |
| Inter-segment revenue | 16,138,128 | 1,903,311 | 38,935,604 | 32,112,917 | -89,089,960 | - |
| Interest income | 993,317 | 844,205 | 243,563 | 22,850,278 | 24,931,363 | |
| Interest expenses | 28,590,444 | 8,409,247 | 13,933,995 | 101,245,278 | 152,178,964 | |
| Asset impairment losses | -37,110 | -116,943 | -154,053 | |||
| Credit impairment loss | 2,331,283 | -239,114 | 876,723 | -6,972 | 2,961,920 | |
| Depreciation and amortization expenses | 299,602,937 | 82,290,663 | 72,923,473 | 2,936,922 | 457,753,995 | |
| Total profit | 521,867,500 | 63,418,187 | 4,166,560 | -103,460,074 | 485,992,173 | |
| Income tax expenses | 71,452,478 | 9,253,051 | 3,409,679 | 84,115,208 | ||
| Net profit | 450,415,022 | 54,165,136 | 756,881 | -103,460,074 | 401,876,965 | |
| Total assets | 8,206,963,735 | 3,615,380,471 | 3,991,099,094 | 3,550,869,407 | 19,364,312,707 | |
| Total liabilities | 2,160,005,072 | 713,860,001 | 479,454,395 | 5,958,671,816 | 9,311,991,284 | |
| Increase in non current assets | 149,426,510 | 248,257,148 | 45,304,030 | 2,863,976 | 445,851,664 |
(3) Other statement
The Group’s revenue from external customers domestically and in foreign countries or geographical areas, and the total non-currentassets 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. 2020 | Jan.-Jun. 2019 |
| Mainland | 3,862,784,501 | 4,155,252,155 |
| Overseas | 561,436,848 | 732,985,423 |
| Total | 4,424,221,349 | 4,888,237,578 |
| Total non-current assets | 30 June 2020 | 31 December 2019 |
| Mainland | 13,234,044,518 | 13,249,557,840 |
| Hong Kong | 12,494,930 | 12,535,219 |
| Total | 13,246,539,448 | 13,262,093,059 |
The Group has a large number of customers, but no revenue from a single customer exceed 10% or more of the Group’s revenue.
3. Other important transactions and matters that have an impact on investors' decisions
□Applicable √ Not applicable
4. Others
□Applicable √ Not applicable
XV. Notes to Financial Statements of the Parent Company
1. Other receivables
Unit: RMB
| Nature of accounts | Ending book balance | Beginning book balance |
| Other receivables | 3,736,236,883 | 3,179,500,967 |
| Total | 3,736,236,883 | 3,179,500,967 |
1) Other accounts receivable classified by the nature of accounts
Unit: RMB
| Nature of accounts | Ending book balance | Beginning book balance |
| Accounts receivable of related party | 3,566,033,088 | 3,008,955,525 |
| Others | 173,677,342 | 174,025,961 |
| Total | 3,739,710,430 | 3,182,981,486 |
2) Withdrawal of bad debt provision
Unit: RMB
| Bad debt provision | Phase I | Phase II | Phase III | Total |
| Expected credit losses in the next 12 months | Expected credit loss for the entire duration (no credit impairmentoccurred) | Expected credit loss for the entire duration (credit impairment occurred) | ||
| Balance on1 January2020 | 3,480,519 | 3,480,519 | ||
| Balance on1 January2020 in current period | —— | —— | —— | —— |
| --Transferred to the Phase II | ||||
| --Transferred to the Phase III | ||||
| -- Transferred back to the Phase II | ||||
| -- Transferred back to the Phase I | ||||
| Withdrawal | 123,501 | 123,501 | ||
| Recovery | 130,473 | 130,473 | ||
| Write-off | ||||
| Verification | ||||
| Other changes | ||||
| Balance on 30 June 2020 | 3,473,547 | 3,473,547 |
3) Disclosure by ageing
Unit: RMB
| Ageing | Closing balance |
| Within 1 year (including 1 year) | 3,567,040,760 |
| 1 to 2 years | 1,506,675 |
| 2 to 3 years | 8,044 |
| Over 3 years | 171,154,951 |
| 3 to 4 years | 154,951 |
| 4 to 5 years | |
| Over 5 years | 171,000,000 |
| Total | 3,739,710,430 |
4) Provision for bad debts accrued, recovered or reversed in the current periodProvision for bad debts:
Unit: RMB
| Category | Opening balance | Amount of change in the current period | Closing balance | |||
| Provision | Collect or reversal | Write-off | Others | |||
| Provision for bad debts by portfolio | 3,480,519 | 123,501 | 130,473 | 3,473,547 | ||
| Total | 3,480,519 | 123,501 | 130,473 | 3,473,547 | ||
5) Top 5 of the closing balance of the other accounts receivable collated according to the arrears party
Unit: RMB
| Name ofthe company | Nature of accounts | Closing balance | Ageing | Proportion of the total year end balance of the accounts receivable (%) | Closing balance of bad debt provision |
| Yichang CSG Polysilicon | Subsidiary | 1,881,373,607 | Within 1 year | 50% | |
| Yichang CSG Display | Subsidiary | 356,890,268 | Within 1 year | 10% | |
| Qingyuan CSG Energy-saving | Subsidiary | 268,044,219 | Within 1 year | 7% | |
| Xianning CSG Photoelectric | Subsidiary | 261,847,799 | Within 1 year | 7% | |
| Shenzhen CSG PV | Subsidiary | 174,800,604 | Within 1 year | 5% | |
| Total | -- | 2,942,956,497 | -- | 79% |
3. 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 | 5,282,965,574 | 15,000,000 | 5,267,965,574 | 5,094,465,574 | 15,000,000 | 5,079,465,574 |
| Total | 5,282,965,574 | 15,000,000 | 5,267,965,574 | 5,094,465,574 | 15,000,000 | 5,079,465,574 |
(1) Investment in subsidiaries
Unit: RMB
| Invested company | Opening balance (book value) | Increase and decrease in the current period | Closing balance (book value) | Closing balance of provision for impairment | |||
| Additional investment | Reducing investment | Provision for impairment | Others | ||||
| Chengdu CSG Glass Co., Ltd. | 151,397,763 | 151,397,763 | |||||
| Sichuan CSG Energy Conservation | 119,256,949 | 119,256,949 | |||||
| Tianjin Energy Conservation Glass Co., Ltd | 247,833,327 | 247,833,327 | |||||
| Dongguan CSG Architectural Glass Co., Ltd. | 198,276,242 | 198,276,242 | |||||
| Dongguan CSG Solar Glass Co., Ltd. | 355,120,247 | 355,120,247 | |||||
| Yichang CSG Polysilicon Co., Ltd. | 640,856,170 | 640,856,170 | |||||
| Wujiang CSG North-east Architectural Glass Co., Ltd. | 254,401,190 | 254,401,190 | |||||
| Hebei CSG Glass Co., Ltd. | 266,189,705 | 266,189,705 | |||||
| China Southern Glass (Hong Kong) Limited | 87,767,304 | 87,767,304 | |||||
| Wujiang CSG Glass Co., Ltd. | 567,645,430 | 567,645,430 | |||||
| Hebei Panel Glass Co., Ltd. | 246,370,595 | 246,370,595 | |||||
| Jiangyou CSG Mining Development Co., Ltd. | 102,415,096 | 102,415,096 | |||||
| Xianning CSG Glass Co., Ltd. | 181,116,277 | 181,116,277 | |||||
| Xianning CSG Energy Conservation Glass Co., Ltd. | 165,452,035 | 165,452,035 | |||||
| Qingyuan CSG Energy Saving New Materials Co.,Ltd. | 303,273,105 | 100,000,000 | 403,273,105 | ||||
| Shenzhen CSG Financial Leasing Co., Ltd. | 133,500,000 | 133,500,000 | |||||
| Shenzhen CSG PV Energy Co., Ltd. | 100,335,176 | 100,335,176 | |||||
| Shenzhen Nanbo Display Technology Co., Ltd. | 550,765,474 | 550,765,474 | |||||
| Xianning CSG Photoelectric Glass Co., Ltd. | 139,755,437 | 139,755,437 | |||||
| ZhaoqingCSG Energy-Saving GlassCo., Ltd. | 12,801,000 | 31,900,000 | 44,701,000 | ||||
| ZhaoqingCSG Automobile GlassCo., Ltd. | 12,601,000 | 30,600,000 | 43,201,000 | ||||
| Anhui CSG New Energy Materials | 3,000,000 | 3,000,000 | |||||
| Anhui CSG New Quartz material | 3,000,000 | 3,000,000 | |||||
| Shenzhen CSG Medical | 20,000,000 | 20,000,000 | |||||
| Others(i) (ii) | 257,336,052 | 257,336,052 | 15,000,000 | ||||
| Total | 5,094,465,574 | 188,500,000 | 5,282,965,574 | 15,000,000 |
(2) Other notes
(i) As at June 30, 2020, long-term equity investment in subsidiaries contained the restricted stocks granted by the Company to theEmployees 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 194,658,263 (31 December 2019: RMB 194,658,263).
(ii) 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 | |
| Other business | 37,484,754 | 38,156,685 | ||
| Total | 37,484,754 | 38,156,685 | ||
New revenue guidelines have been implemented or not
√Yes □No
4. Investment income
Unit: RMB
| Item | Occurred in this term | Occurred in previous term |
| Long-term equity investment accounted by cost method | 703,591,508 | 390,105,325 |
| Total | 703,591,508 | 390,105,325 |
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 | -342,005 | |
| 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) | 48,109,326 | |
| Loss and profit from external entrusted loan | 5,546,384 | |
| Other non-operating income and expenditure except for | -15,417,422 |
| the aforementioned items | ||
| Less: Impact on income tax | 4,330,999 | |
| Impact on minority shareholders’ equity (post-tax) | 742,858 | |
| Total | 32,822,426 | -- |
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 net assets 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 ordinary shareholders of the Company | 4.08% | 0.13 | 0.13 |
| Net profit attributable to ordinary shareholders of the Company after deducting non-recurring gains and losses | 3.74% | 0.12 | 0.12 |
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 papersappointed by CSRC in the report period.
Board of Directors ofCSG Holding Co., Ltd.24 August 2020