Financial Report of Semi-annual Report 2022
I.Auditors’ Report
Whether 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, 2022
Unit: RMB
Item | June 30, 2022 | January 1, 2022 |
Current assets: | ||
Cash at bank and on hand | 2,870,042,541 | 2,765,925,906 |
Trading financial assets | 1,209,000,000 | 999,600,000 |
Notes receivable | 445,375 | 19,220,984 |
Accounts receivable | 842,283,667 | 730,525,687 |
Receivables financing | 582,328,808 | 297,046,123 |
Advances to suppliers | 235,326,059 | 76,097,276 |
Other receivables | 201,090,652 | 183,696,711 |
Inventories | 1,766,912,399 | 1,093,805,525 |
Other current assets | 68,616,670 | 140,705,298 |
Total current assets | 7,776,046,171 | 6,306,623,510 |
Non-current assets | ||
Investment property | 383,084,500 | 383,084,500 |
Fixed assets | 9,336,413,529 | 8,566,515,026 |
Construction in progress | 2,809,337,684 | 2,461,088,650 |
Right of use assets | 9,034,632 | 9,911,935 |
Intangible assets | 1,209,525,068 | 1,167,611,402 |
Development expenditure | 91,718,822 | 72,019,362 |
Goodwill | 130,147,859 | 130,147,859 |
Long-term prepaid expenses | 3,234,021 | 3,013,721 |
Deferred tax assets | 196,661,447 | 255,185,923 |
Other non-current assets | 525,974,043 | 584,162,622 |
Total non-current assets | 14,695,131,605 | 13,632,741,000 |
Total assets | 22,471,177,776 | 19,939,364,510 |
1. Consolidated Balance Sheet (continued)
Prepared by CSG Holding Co., Ltd.
June 30, 2022
Unit: RMB
Item | 30-Jun-22 | 1-Jan-22 |
Current liabilities : | ||
Short-term borrowings | 468,108,522 | 180,770,000 |
Notes payable | 549,939,628 | 400,662,713 |
Accounts payable | 1,796,932,531 | 1,428,851,312 |
Contract liabilities | 413,885,125 | 335,188,642 |
Employee benefits payable | 287,729,142 | 426,212,979 |
Taxes payable | 154,652,150 | 185,009,681 |
Other payables | 221,866,936 | 289,440,477 |
Of which: interest payable | 36,640,548 | 95,001,362 |
Non-current liabilities due within one year | 2,371,913,539 | 503,820,548 |
Other current liabilities | 47,730,142 | 40,099,309 |
Total current liabilities | 6,312,757,715 | 3,790,055,661 |
Non-current liabilities | ||
Long-term borrowings | 3,161,136,468 | 1,469,059,824 |
Bonds payable | 1,996,587,330 | |
lease liability | 220,138 | |
Long-term payables | 149,062,955 | 168,258,062 |
Deferred income | 495,313,618 | 564,129,128 |
Deferred tax liabilities | 91,256,653 | 84,580,132 |
Total non-current liabilities | 3,896,769,694 | 4,282,834,614 |
Total liabilities | 10,209,527,409 | 8,072,890,275 |
Shareholders’ equity | ||
Share capital | 3,070,692,107 | 3,070,692,107 |
Capital surplus | 596,997,085 | 596,997,085 |
Other comprehensive income | 165,368,070 | 159,200,530 |
Special reserves | 1,852,703 | 7,296,397 |
Surplus reserve | 1,144,887,510 | 1,144,887,510 |
Undistributed profits | 6,837,623,394 | 6,450,587,417 |
Total equity attributable to shareholders of parent company | 11,817,420,869 | 11,429,661,046 |
Minority shareholders' equity | 444,229,498 | 436,813,189 |
Total shareholders' equity | 12,261,650,367 | 11,866,474,235 |
Total liabilities and shareholders' equity | 22,471,177,776 | 19,939,364,510 |
Legal Representative:Chen Lin Principal in charge of accounting: Wang Wenxin Principal of the financial department:
Wang Wenxin
2. Balance Sheet of the Parent Company
Prepared by CSG Holding Co., Ltd.
June 30, 2022
Unit: RMB
Item | June 30, 2022 | January 1, 2022 |
Current assets | ||
Cash at bank and on hand | 2,017,872,177 | 1,961,406,035 |
Trading financial assets | 1,209,000,000 | 999,600,000 |
Accounts receivable | 1,996,267 | |
Receivables Financing | 15,299,671 | |
Advances to suppliers | 699,982 | 639,164 |
Other receivables | 2,624,297,723 | 2,899,091,405 |
Of which: dividends receivable | 250,000,000 | 250,000,000 |
Other current assets | 1,226 | |
Total current assets | 5,869,167,046 | 5,860,736,604 |
Non-current assets | ||
Long-term equity investments | 6,899,675,709 | 6,262,391,694 |
Fixed assets | 9,002,995 | 11,509,029 |
Intangible assets | 3,382,512 | 2,102,548 |
Other non-current assets | 104,236,952 | 104,109,111 |
Total non-current assets | 7,016,298,168 | 6,380,112,382 |
Total assets | 12,885,465,214 | 12,240,848,986 |
2. Balance Sheet of the Parent Company(continued)
Prepared by CSG Holding Co., Ltd.
June 30, 2022
Unit: RMB
Item | June 30, 2022 | January 1, 2022 |
Current liabilities | ||
Short-term borrowings | 300,000,000 | 100,000,000 |
Bills payable | 13,523,441 | |
Accounts payable | 464,790 | 315,684 |
Contract liabilities | 3,339,466 | |
Employee benefits payable | 31,843,275 | 68,534,315 |
Taxes payable | 15,815,743 | 8,316,132 |
Other payables | 2,075,266,331 | 2,067,472,879 |
Of which: interest payable | 34,012,995 | 93,596,328 |
Non-current liabilities due within one year | 2,232,931,024 | 400,000,000 |
Other current liabilities | 434,130 | |
Total current liabilities | 4,673,618,200 | 2,644,639,010 |
Non-current liabilities | ||
Long-term borrowings | 1,245,000,000 | 690,000,000 |
Bonds payable | 1,996,587,330 | |
Deferred income | 172,312,500 | 172,500,000 |
Total non-current liabilities | 1,417,312,500 | 2,859,087,330 |
Total liabilities | 6,090,930,700 | 5,503,726,340 |
Shareholders’ equity | ||
Share capital | 3,070,692,107 | 3,070,692,107 |
Capital surplus | 741,824,399 | 741,824,399 |
Surplus reserve | 1,159,432,870 | 1,159,432,870 |
Undistributed profits | 1,822,585,138 | 1,765,173,270 |
Total shareholders' equity | 6,794,534,514 | 6,737,122,646 |
Total liabilities and shareholders' equity | 12,885,465,214 | 12,240,848,986 |
Legal Representative:Chen Lin Principal in charge of accounting: Wang Wenxin Principal of the financial department:
Wang Wenxin
3. Consolidated Income Statement
Prepared by CSG Holding Co., Ltd.
Unit: RMB
Item | Half year of 2022 | Half year of 2021 |
I. Total revenue | 6,519,216,676 | 6,614,802,538 |
Of which:Business income | 6,519,216,676 | 6,614,802,538 |
II. Total business cost | 5,480,144,295 | 4,992,720,799 |
Of which:Business cost | 4,637,645,927 | 4,126,627,145 |
Tax and surcharge | 61,280,622 | 73,966,054 |
Sales expenses | 133,906,652 | 125,326,015 |
Administrative expenses | 318,635,812 | 354,914,704 |
R&D expenses | 265,877,930 | 224,886,882 |
Financial expenses | 62,797,352 | 86,999,999 |
Of which: interest expense | 91,984,604 | 101,970,419 |
Interest income | 30,756,704 | 20,024,847 |
Plus: Other income | 99,302,552 | 36,553,804 |
Investment income (“- “for loss) | 16,413,695 | 3,672,330 |
Credit impairment loss (“- “for loss) | -1,492,222 | -2,524,048 |
Asset impairment loss (“- “for loss) | 1,456 | -26,753,082 |
Income on disposal assets (“- “for loss) | 12,745,461 | 137,638 |
III. Operational profit (“- “for loss) | 1,166,043,323 | 1,633,168,381 |
Plus: non-operational income | 15,132,978 | 7,551,798 |
Less: non-operational expenditure | 3,660,070 | 16,461,985 |
IV. Total profit (“- “for loss) | 1,177,516,231 | 1,624,258,194 |
Less: Income tax expenses | 168,925,524 | 255,280,290 |
V. Net profit (“- “for net loss) | 1,008,590,707 | 1,368,977,904 |
(I) Classification by business continuity | ||
1. Net profit from continuing operations (“-” for net loss) | 1,008,590,707 | 1,368,977,904 |
2. Net profit from discontinued operations (“-” for net loss) | ||
(II) Classification by ownership | ||
1. Equity attributable to shareholders of parent company | 1,001,174,398 | 1,352,517,465 |
2.Minority shareholder gains and losses | 7,416,309 | 16,460,439 |
VI. Other comprehensive income net after tax | 6,167,540 | 1,322,491 |
Other comprehensive income net after tax attributable to shareholders of parent company | 6,167,540 | 1,322,491 |
(I) Other comprehensive income that will be reclassified into profit and loss | ||
(II) Other comprehensive income reclassified to profit or loss | 6,167,540 | 1,322,491 |
1.Differences on translation of foreign currency financial statements | 6,167,540 | 1,322,491 |
Other comprehensive income, net of tax attributable to minority shareholders | ||
VII. Total comprehensive income | 1,014,758,247 | 1,370,300,395 |
Total comprehensive income attributable to shareholders of parent company | 1,007,341,938 | 1,353,839,956 |
Total comprehensive income attributable to minority shareholders | 7,416,309 | 16,460,439 |
VIII. Earnings per share: | ||
(I) Basic earnings per share | 0.33 | 0.44 |
(II) Diluted earnings per share | 0.33 | 0.44 |
Legal Representative:Chen Lin Principal in charge of accounting: Wang Wenxin Principal of the financial department:
Wang Wenxin
4. Income Statement of the Parent Company
Prepared by CSG Holding Co., Ltd.
Unit: RMB
Item | Half year of 2022 | Half year of 2021 |
I. Revenue | 230,198,412 | 42,342,857 |
Less: Business cost | 15,015,892 | |
Tax and surcharge | 1,508,969 | 674,374 |
Sales expenses | 1,500,585 | |
Administrative expenses | 158,605,939 | 91,345,095 |
R & D expenses | 616,965 | |
Financial expenses | 54,002,083 | 76,018,822 |
Of which: interest expense | 84,259,999 | 94,186,512 |
Interest income | 28,380,771 | 17,977,849 |
Plus: Other income | 5,677,313 | 2,018,355 |
Investment income(“- “for loss) | 665,374,823 | 718,475,642 |
Credit impairment loss (“- “for loss) | -85,084 | -9,473 |
Income on disposal assets (“- “for loss) | 2,477,876 | 6,893,580 |
II. Operating profit | 673,009,872 | 601,065,705 |
Add: Non-operating income | 29,967 | |
Less: Non-operating expenses | 1,459,583 | 15,026,836 |
III. Total profit (“- “for loss) | 671,550,289 | 586,068,836 |
Less: Income tax expenses | ||
IV. Net profit (“- “for loss) | 671,550,289 | 586,068,836 |
(I) Net profit for continuing operations(“- “for loss) | 671,550,289 | 586,068,836 |
(II) Net profit from discontinued operations(“- “for loss) | ||
VI. Total comprehensive income | 671,550,289 | 586,068,836 |
VII. Earnings per share |
Legal Representative:Chen Lin Principal in charge of accounting: Wang Wenxin Principal of the financial department:
Wang Wenxin
5. Consolidated Cash Flow Statement
Prepared by CSG Holding Co., Ltd.
Unit: RMB
Item | Half year of 2022 | Half year of 2021 |
I. Cash flows from operating activities | ||
Cash received from sales of goods or rendering of services | 6,933,269,669 | 7,148,379,280 |
Refund of taxes and surcharges | 209,272,049 | 33,207,751 |
Cash received relating to other operating activities | 87,236,568 | 178,825,175 |
Subtotal of cash inflow from operating activities | 7,229,778,286 | 7,360,412,206 |
Cash paid for goods and services | 4,720,858,626 | 3,907,366,000 |
Cash paid to and on behalf of employees | 967,549,535 | 888,450,173 |
Payments of taxes and surcharges | 434,697,790 | 619,574,024 |
Cash payments relating to other operating activities | 203,869,214 | 246,776,634 |
Subtotal of cash outflow from operating activities | 6,326,975,165 | 5,662,166,831 |
Net cash flows from/(used in) operating activities | 902,803,121 | 1,698,245,375 |
II. Cash flows from investing activities | ||
Cash received from investment recovery | 1,988,760,000 | 1,182,000,000 |
Cash received from investment income | 15,609,996 | 3,559,719 |
Net cash received from disposal of fixed assets, intangible assets and other long-term assets | 13,563,172 | 777,451 |
Cash received relating to other investing activities | 32,136,351 | |
Subtotal of cash inflows from investing activities | 2,017,933,168 | 1,218,473,521 |
Cash paid to acquire fixed assets, intangible assets and other long-term assets | 1,632,778,700 | 738,492,345 |
Cash paid for investment | 2,198,160,000 | 1,644,000,000 |
Cash paid relating to other investing activities | 19,138,102 | 6,911,853 |
Subtotal of cash outflows from investing activities | 3,850,076,802 | 2,389,404,198 |
Net cash flows (used in)/from investing activities | -1,832,143,634 | -1,170,930,677 |
III. Cash flows from financing activities | ||
Cash received from borrowings | 2,277,155,766 | 605,996,933 |
Cash received relating to other financing activities | 206,753 | |
Subtotal of cash inflows from financing activities | 2,277,362,519 | 605,996,933 |
Cash repayments of borrowings | 428,340,521 | 1,099,975,831 |
Cash payments for interest expenses and distribution of dividends or profits | 791,223,957 | 508,082,947 |
Cash payments relating to other financing activities | 24,165,012 | 390,507 |
Subtotal of cash outflows from financing activities | 1,243,729,490 | 1,608,449,285 |
Net cash flows (used in)/from financing activities | 1,033,633,029 | -1,002,452,352 |
IV. Effect of foreign exchange rate changes on cash and cash equivalents | 3,195,681 | -1,217,711 |
V. Net increase/(decrease) in cash and cash equivalents | 107,488,197 | -476,355,365 |
Add: Cash and cash equivalents at beginning of current period | 2,756,477,572 | 2,124,028,196 |
VI. Cash and cash equivalents at end of current period | 2,863,965,769 | 1,647,672,831 |
Legal Representative:Chen Lin Principal in charge of accounting: Wang Wenxin Principal of the financial department:
Wang Wenxin
6. Cash Flow Statement of the Parent Company
Prepared by CSG Holding Co., Ltd.
Unit: RMB
Item | Half year of 2022 | Half year of 2021 |
I. Cash flows from operating activities | ||
Cash received from sales of goods or rendering of services | 191,082,575 | |
Cash received relating to other operating activities | 39,349,241 | 29,031,997 |
Subtotal of cash inflow from operating activities | 230,431,816 | 29,031,997 |
Cash paid to and on behalf of employees | 179,110,652 | 77,605,388 |
Payments of taxes and surcharges | 7,463,566 | 11,908,472 |
Cash paid relating to other operating activities | 16,953,909 | 31,121,887 |
Sub-total of cash outflows | 203,528,127 | 120,635,747 |
Net cash flows from/(used in) operating activities | 26,903,689 | -91,603,750 |
II. Cash flows from investing activities | ||
Cash received from investment recovery | 1,988,760,000 | 1,090,000,000 |
Cash received from investment income | 664,571,124 | 967,450,288 |
Net cash received from disposal of fixed assets, intangible assets and other long-term assets | 2,477,876 | 101,560 |
Sub-total of cash inflows | 2,655,809,000 | 2,057,551,848 |
Cash paid to acquire fixed assets, intangible assets and other long-term assets | 3,611,833 | 2,669,478 |
Cash paid for investing activities | 2,835,444,015 | 1,839,799,000 |
Sub-total of cash outflows | 2,839,055,848 | 1,842,468,478 |
Net cash flows (used in)/from investing activities | -183,246,848 | 215,083,370 |
III. Cash flows from financing activities | ||
Cash received from borrowings | 900,000,000 | 314,000,000 |
Cash received relating to other financing activities | 379,666,653 | 143,736,716 |
Sub-total of cash inflows | 1,279,666,653 | 457,736,716 |
Cash repayments of borrowings | 310,000,000 | 857,300,000 |
Cash payments for interest expenses and distribution of dividends or profits | 756,638,060 | 497,947,983 |
Cash payments relating to other financing activities | 1,017,256 | |
Subtotal of cash outflows from financing activities | 1,067,655,316 | 1,355,247,983 |
Net cash flows (used in)/from financing activities | 212,011,337 | -897,511,267 |
IV. Effect of foreign exchange rate changes on cash and cash equivalents | 1,808,472 | 372,354 |
V.Net increase/(decrease) in cash and cash equivalents | 57,476,650 | -773,659,293 |
Add: Cash and cash equivalents at beginning of current period | 1,960,395,527 | 1,071,200,364 |
VI. Cash and cash equivalents at end of current period | 2,017,872,177 | 297,541,071 |
Legal Representative:Chen Lin Principal in charge of accounting: Wang Wenxin Principal of the financial department:
Wang Wenxin
7. Consolidated Statement of Changes in Owners’ Equity
Prepared by CSG Holding Co., Ltd.Amount of the current period
Unit: RMB
Item | Half year of 2022 | ||||||||
Owners’ Equity Attributable to the Parent Company | Minority shareholders' equity | Total shareholders' equity | |||||||
Share capital | Capital surplus | Other comprehensive income | Special reserves | Surplus reserve | Undistributed profits | Subtotal | |||
I. Balance at the end of the previous year | 3,070,692,107 | 596,997,085 | 159,200,530 | 7,296,397 | 1,144,887,510 | 6,450,587,417 | 11,429,661,046 | 436,813,189 | 11,866,474,235 |
II. Balance at the beginning of current year | 3,070,692,107 | 596,997,085 | 159,200,530 | 7,296,397 | 1,144,887,510 | 6,450,587,417 | 11,429,661,046 | 436,813,189 | 11,866,474,235 |
III. Amount of change in current term(“- “for decrease) | 6,167,540 | -5,443,694 | 387,035,977 | 387,759,823 | 7,416,309 | 395,176,132 | |||
(I) Total amount of the comprehensive income | 6,167,540 | 1,001,174,398 | 1,007,341,938 | 7,416,309 | 1,014,758,247 | ||||
(II) Capital paid in and reduced by owners | |||||||||
(III) Profit distribution | -614,138,421 | -614,138,421 | -614,138,421 | ||||||
1. Appropriations to owners (or shareholders) | -614,138,421 | -614,138,421 | -614,138,421 | ||||||
(IV) Internal carry-forward of owners’ equity | |||||||||
(V) Specific reserves | -5,443,694 | -5,443,694 | -5,443,694 | ||||||
1. Withdrawal in the period | 4,853,948 | 4,853,948 | 4,853,948 | ||||||
2. Used in the period | 10,297,642 | 10,297,642 | 10,297,642 | ||||||
(VI) Others | |||||||||
IV. Balance at the end of the period | 3,070,692,107 | 596,997,085 | 165,368,070 | 1,852,703 | 1,144,887,510 | 6,837,623,394 | 11,817,420,869 | 444,229,498 | 12,261,650,367 |
7. Consolidated Statement of Changes in Owners’ Equity(continued)
Prepared by CSG Holding Co., Ltd.Amount of the previous period
Unit: RMB
Item | Half year of 2021 | ||||||||
Owners’ Equity Attributable to the Parent Company | Minority shareholders' equity | Total shareholders' equity | |||||||
Share capital | Capital surplus | Other comprehensive income | Special reserves | Surplus reserve | Undistributed profits | Subtotal | |||
I. Balance at the end of the previous year | 3,070,692,107 | 596,997,085 | 161,816,819 | 10,269,002 | 1,036,948,422 | 5,336,266,412 | 10,212,989,847 | 402,894,039 | 10,615,883,886 |
II. Balance at the beginning of current year | 3,070,692,107 | 596,997,085 | 161,816,819 | 10,269,002 | 1,036,948,422 | 5,336,266,412 | 10,212,989,847 | 402,894,039 | 10,615,883,886 |
III. Amount of change in current term(“- “for decrease) | 1,322,491 | -1,166,410 | 1,045,448,254 | 1,045,604,335 | 16,460,439 | 1,062,064,774 | |||
(I) Total amount of the comprehensive income | 1,322,491 | 1,352,517,465 | 1,353,839,956 | 16,460,439 | 1,370,300,395 | ||||
(II) Capital paid in and reduced by owners | |||||||||
(III) Profit distribution | -307,069,211 | -307,069,211 | -307,069,211 | ||||||
1. Appropriations to owners (or shareholders) | -307,069,211 | -307,069,211 | -307,069,211 | ||||||
(IV) Internal carry-forward of owners’ equity | |||||||||
(V) Specific reserves | -1,166,410 | -1,166,410 | -1,166,410 | ||||||
1. Withdrawal in the period | |||||||||
2. Used in the period | 1,166,410 | 1,166,410 | 1,166,410 | ||||||
(VI) Others | |||||||||
IV. Balance at the end of the period | 3,070,692,107 | 596,997,085 | 163,139,310 | 9,102,592 | 1,036,948,422 | 6,381,714,666 | 11,258,594,182 | 419,354,478 | 11,677,948,660 |
Legal Representative:Chen Lin Principal in charge of accounting: Wang Wenxin Principal of the financial department:Wang Wenxin
8. Statement of changes in owner's equity of the parent company
Prepared by CSG Holding Co., Ltd.Amount of the current period
Unit: RMB
Item | Half year of 2022 | ||||
Share capital | Capital surplus | Surplus reserve | Undistributed profits | Total shareholders' equity | |
I. Balance at the end of the previous year | 3,070,692,107 | 741,824,399 | 1,159,432,870 | 1,765,173,270 | 6,737,122,646 |
II. Balance at the beginning of current year | 3,070,692,107 | 741,824,399 | 1,159,432,870 | 1,765,173,270 | 6,737,122,646 |
III. Amount of change in current term(“- “for decrease) | 57,411,868 | 57,411,868 | |||
(I) Total amount of the comprehensive income | 671,550,289 | 671,550,289 | |||
(II) Capital paid in and reduced by owners | |||||
(III) Profit distribution | -614,138,421 | -614,138,421 | |||
1. Appropriations to owners (or shareholders) | -614,138,421 | -614,138,421 | |||
(IV) Internal carry-forward of owners’ equity | |||||
(V) Special reserves | |||||
(VI) Others | |||||
IV. Balance at the end of the period | 3,070,692,107 | 741,824,399 | 1,159,432,870 | 1,822,585,138 | 6,794,534,514 |
8. Statement of changes in owner's equity of the parent company(continued)
Prepared by CSG Holding Co., Ltd.Amount of the previous period
Unit: RMB
Item | Half year of 2021 | ||||
Share capital | Capital surplus | Surplus reserve | Undistributed profits | Total shareholders' equity | |
I. Balance at the end of the previous year | 3,070,692,107 | 741,824,399 | 1,051,493,782 | 1,100,790,694 | 5,964,800,982 |
II. Balance at the beginning of current year | 3,070,692,107 | 741,824,399 | 1,051,493,782 | 1,100,790,694 | 5,964,800,982 |
III. Amount of change in current term(“- “for decrease) | 278,999,625 | 278,999,625 | |||
(I) Total amount of the comprehensive income | 586,068,836 | 586,068,836 | |||
(II) Capital paid in and reduced by owners | |||||
(III) Profit distribution | -307,069,211 | -307,069,211 | |||
1. Appropriations to owners (or shareholders) | -307,069,211 | -307,069,211 | |||
(IV) Internal carry-forward of owners’ equity | |||||
(V) Special reserves | |||||
(VI) Others | |||||
IV. Balance at the end of the period | 3,070,692,107 | 741,824,399 | 1,051,493,782 | 1,379,790,319 | 6,243,800,607 |
Legal Representative:Chen Lin Principal in charge of accounting: Wang Wenxin Principal of the financial department:Wang Wenxin
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, 2022, the registered capital was RMB 3,070,692,107, with nominal value of RMB1 per share.
The Company and its subsidiaries (collectively referred to as the “Group”) are mainly engaged in the manufacture and sales of 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 29, 2022.
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
This financial report is prepared on the basis of going concern.V. Summary of significant accounting policies and accounting estimatesThe Group determines its specific accounting policies and accounting estimates to manufacturing and operation feature. It mainlyreflected in expected credit impairment losses of receivables was measured, inventory costing method, Depreciation of fixed assetsand amortization of intangible assets, criteria for determining capitalised development expenditure, and timing for revenuerecognition.
Refer to the notes for details of 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 2022 truly and completely present the financial position as of June30, 2022and the operating results, cash flows and other information for the first half year of 2022of 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. Business combinations
(a)Business combinations involving entities under common controlThe consideration paid and net assets obtained by the absorbing party in a business combination are measured at book value. If themerged party was acquired by the ultimate controlling party from a third party in the previous year, the assets and liabilities of themerged party (including the goodwill formed by the ultimate controlling party’s acquisition of the merged party). The differencebetween book value of the net assets obtained from the combination and book value of the consideration paid for the combination istreated as an adjustment to capital surplus (share premium). If the capital surplus (share premium) is not sufficient to absorb thedifference, the remaining balance is adjusted against retained earnings. Costs directly attributable to the combination are included inprofit or loss in the period in which they are incurred. Transaction costs associated with the issue of equity or debt securities for thebusiness combination are included in the initially recognised amounts of the equity or debt securities.(b) Business combinations involving enterprises not under common controlThe 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 directlyattributable 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 method 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 the
ultimate controlling party. The portion of the net profits realised before the combination date is presented separately in theconsolidated income 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 refer to cash in hand, deposits that can be used for payment at any time, and investments with shortholding periods, strong liquidity, easy conversion into known amounts of cash, and low risk of value changes.
8.Translating of foreign currency operations and foreign currency report form
(a) Foreign currency transactionForeign currency transactions are translated into RMB using the exchange rates prevailing at the dates of the transactions.On 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)Conversion 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 theshareholders’ equity. The cash flows of overseas operations are translated at the spot exchange rates on the dates of the cash flows.The effect of exchange rate changes on cash is presented separately in the cash flow statement.
9.Financial instrument
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument ofanother entity. A financial asset or a financial liability is recognised when the Group becomes a party to the contractual provisions ofthe instrument.(a) Financial assets
(i) Classification and measurement
Based on the business model for managing the financial assets and the contractual cash flow characteristics of the financial assetsfinancial assets are classified as: (1) financial assets at amortised cost; (2) financial assets at fair value through other comprehensiveincome; (3) financial assets at fair value through 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 recognised 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 recognised 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 ways.
Measured at amortised cost
The objective of the Group's business model is to hold the financial assets to collect the contractual cash flows, and the contractualcash flow 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 on hand placementswith and loans to banks and other financial institutions measured at amortised cost, accounts receivable, factoring receivables, loansand advances, other receivables and long-term receivables. Long-term receivables that are due within one year (inclusive) as from thebalance sheet date are included in the current portion of non-current assets.
Financial assets at fair value through other comprehensive income:
The objective of the Group's business model is to hold the financial assets to collect the contractual cash flows and selling as targetand the contractual cash flow characteristics are consistent with a basic lending arrangement. Such financial assets are measured atfair value and their changes are included in other comprehensive income, but impairment losses or gains, exchange gains and losses,and interest income calculated by the effective interest rate method are all included in the current profit and loss. Such financialassets mainly comprise - receivable financing and other financial debt investment. Other financial debt investment that are due withinone year (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 at amortised 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 within 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, are measured 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 financialassets is recognised in profit or loss for the current period.
(ii) Impairment
The Group confirms the loss provision based on expected credit losses for financial assets measured at amortised cost, debtinstrument investments at fair value through other comprehensive income, and financial guarantee contracts. based on expected creditlosses (ECL) and recognizes allowances for losses.
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 .
On each balance sheet date, the expected credit losses of financial instruments at different stages are measured respectively.12-month ECL provision is recognised for financial instruments in Stage 1 that have not had a significant increase in credit risk sinceinitial recognition; lifetime ECL provision is recognised for financial instruments in Stage 2 that have had a significant increase incredit risk yet without credit impairment since initial recognition; and lifetime ECL provision is recognised for financial instrumentsin Stage 3 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 risk since initial recognition and recognises 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 in-Stage 3, 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 factoring receivables arising from daily business activities such as selling commodities andproviding labor services, the Group recognises the lifetime expected credit loss provision regardless of whether there exists asignificant financing component.
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 | Trade acceptance notes | Expected credit loss method |
Accounts receivables Portfolio 1 | Receivables non-related third party | Expected credit loss method |
Accounts receivables Portfolio 2 | Receivables related party | Expected credit loss method |
Other receivables Portfolio 1 | Receivables non-related third party | Expected credit loss method |
Other receivables Portfolio 2
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 theexpected credit loss.The Group recognises 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) Derecognition
A financial asset is derecognised when any of the below criteria is met: (1) the contractual rights to receive the cash flows 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; or (3) the financial asset has been transferred and the Group has not retained controlof the financial asset, although the Group neither transfers nor retains substantially all the risks and rewards of ownership of thefinancial asset.(b) Financial liabilities
Financial liabilities are classified as financial liabilities at amortised cost and financial liabilities at fair value through profit or loss atinitial recognition.The Group's financial liabilities are mainly comprise financial liabilities at amortised cost, including bills payable, accounts payable,and other 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; Those with a maturity of less than one year (including one year) are listed as current liabilities; those with amaturity of more than one year but due within one year (including one year) from the balance sheet date are listed as non-currentliabilities due within one year. The rest are listed as non-current liabilities.A financial liability is derecognised or partly derecognised when the underlying present obligation is discharged or partly discharged.The difference between the carrying amount of the derecognised 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 instrumentsThe fair value of a financial instrument that is traded in an active market is determined at the quoted price in the active market. Thefair value of a financial instrument that is not traded in an active market is determined by using a valuation technique. In valuation,the Group adopts valuation techniques applicable in the current situation and supported by adequate available data and otherinformation, selects inputs with the same characteristics as those of assets or liabilities considered in relevant transactions of assets orliabilities by market participants, and gives priority to the use of relevant observable inputs. When relevant observable inputs are notavailable or feasible, 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)Issued Inventory costing method
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) Amortisation methods of low value consumables and packaging materialsTurnover materials include low value consumables and packaging materials, which are expensed when issued.
(d) The determination of net realisable value and the method of provision for decline in the value of inventoriesProvision for decline in the value of inventories is determined at the excess amount of book values of the inventories over their netrealisable value. Net realisable 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 recognized 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 discontinued operation 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 theequity method when preparing the consolidated financial statements. Investments in associates are accounted for using the equitymethod.
(a)Initial recognition of investment cost
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 using the equity method, where the initial investment cost of a long-term equityinvestment exceeds the Group’s share of the fair value of the investee’s
identifiable net assets at the acquisition date, the long-term equity investment is measured at the initial investment cost; where theinitial investment cost is less than the Group’s share of the fair value of the investee’s identifiable net assets at the acquisition date,the difference is included in profit or loss and the cost of the long-term equity investment is adjusted upwards accordingly.
Under the equity method, the Group recognises the investment income according to its share of net profit or loss of the investee. TheGroup discontinues recognising its share of the net losses of an investee after book values of the long-term equity investmenttogether with any long-term interests that in substance form part of the investor’s net investment in the investee are reduced to zero.However, if the Group has obligations for additional losses and the criteria with respect to recognition of provisionsunder the accounting standards on contingencies are satisfied, the Group continues recognising the investment losses and theprovisions. For changes in owners’ equity of the investee other than those arising from its net profit or loss, its proportionate share isdirectly recorded into capital surplus, provided that the proportion of the shareholding of the Group in the investee remainsunchanged. Book value of the investment is reduced by the Group’s share of the profit distribution or cash dividends declared by aninvestee. The unrealised profits or losses arising from the intra-group transactions amongst the Group and its investees are eliminatedin proportion to the Group’s equity interest in the investees, and then based on which the investment gains or losses are recognised.Any losses resulting 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.Investment property
Investment property includes leased land use rights, land use rights held and provided for to transfer after appreciation and leasedbuilding and construction.
Investment properties are initially measured at acquisition cost. The cost of outsourcing Investment property includes the purchaseprice, relevant taxes and other expenditures that can be directly attributable to the asset; the cost of self-built Investment property isdetermined by the construction of the asset. The composition of the necessary expenditures incurred before the usable state.
Investment property adopts the fair value model for subsequent measurement without depreciation or amortization. On the balancesheet date, the book value of the investment properties are initially measured at acquisition cost is adjusted based on the fair value ofthe investment properties are initially measured at acquisition cost. The difference between the fair value and the original book value
will be calculated into the current profit and loss.
When the use of an Investment property is changed to self-use, the investment property is converted into fixed assets or intangibleassets from the date of change, and the book value and fair value of the fixed assets and intangible assets are determined based on thefair value of the investment property on the conversion date. The difference with the original book value of the investment property isincluded in the current profit and loss. When the purpose of self-use real estate is changed to earning rent or capital appreciation,from the date of change, the fixed assets or intangible assets are converted into investment properties are initially measured atacquisition cost, and the fair value on the day of conversion is used as the book value of the investment properties are initiallymeasured at acquisition cost, and the fair value on the day of conversion If the value is less than the original book value of fixedassets and intangible assets, the difference is included in the current profit and loss. If the fair value on the day of conversion isgreater than the original book value of fixed assets and intangible assets, the difference is included in other comprehensive income.
When an investment property is disposed of or permanently withdrawn from use and it is expected that no economic benefits can beobtained from its disposal, the confirmation of the investment real estate shall be terminated. The disposal income from the sale,transfer, scrapping or destruction of investment real estate shall deduct its book value and relevant taxes and shall be included in thecurrent profits and losses. If there is an amount included in other comprehensive income on the original conversion date, it will alsobe carried forward and included in the current profit and loss.
14. Fixed assets
(1) Recognition condition
Fixed assets comprise buildings, machinery and equipment, motor vehicles and others.
Fixed assets are recognized 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 isderecognized. All the other subsequent expenditures are recognized in profit or loss in the period in which they are incurred.
(2) 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 to 20 years | 5% | 4.75% to 11.88% |
Motor vehicles and others | Straight-line method | 5 to 8 years | 0% | 12.50% to 20.00% |
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.
(3) Book value of a fixed asset is reduced to the recoverable amount when the recoverable amount is below book value.
(4) Disposal
A fixed asset is derecognized 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 recognized in profit or loss for the current period.
15. 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.
16. Borrowing costs
The borrowing costs incurred by the group that are directly attributable to the acquisition and construction of an asset that needs asubstantially long period of time for its intended use commence to be capitalised and recorded as part of the cost of the asset whenexpenditures for the asset and borrowing costs have been incurred, and the activities relating to the acquisition and construction thatare necessary to prepare the asset for its intended use have commenced. The capitalisation of borrowing costs ceases when the assetunder acquisition or construction becomes ready for its intended use and the borrowing costs incurred thereafter are recognized inprofit or loss for the current period. Capitalisation of borrowing costs is suspended during periods in which the acquisition orconstruction of a fixed asset is interrupted abnormally and the interruption lasts for more than 3 months, until the acquisition orconstruction 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 the amount of interest expenses actually incurred in the current period ofspecial borrowing deducting any interest income earned from depositing the unused specific borrowings in the banks or anyinvestment income arising on the temporary investment of those borrowings during the capitalisation period.
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.17 .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 rightsLand 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 recognized as fixed assets.(b) Patents and proprietary technologiesPatents and proprietary technologies are 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 methodFor 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 assetsBook 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 isrecognized 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 recognized in profit or loss in the period in which they areincurred. Development costs previously recognized as expenses are not recognized 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.
18. Impairment of long-term assets
Investment properties,fixed assets, construction in progress, intangible assets with finite useful lives and long-term equityinvestments in joint ventures and associates are tested for impairment if there is any indication that the assets may be impaired at thebalance sheet date; intangible assets not ready for their intended use are tested at least annually for impairment, irrespective ofwhether there is any indication that they may be impaired. If the result of the impairment test indicates that the recoverable amount ofan asset is less than its carrying amount, a provision for impairment and an impairment loss are recognized for the amount by whichthe asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs tosell and the present value of the future cash flows expected to be derived from the asset. Provision for asset impairment is determinedand recognized on the individual asset basis. If it is not possible to estimate the recoverable amount of an individual asset, therecoverable amount of a group of assets to which the asset belongs is determined. A group of assets is the smallest group of assetsthat is able to generate independent cash inflows.
Goodwill that is separately presented in the financial statements is tested at least annually for impairment, irrespective of 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 recognized. The impairment loss is first deducted from book value ofgoodwill that is allocated to the asset group or group of asset groups, and then deducted from book values of other assets within theasset groups or groups of asset groups in proportion to book values of assets other than goodwill.
Once the above asset impairment loss is recognized, it will not be reversed for the value recovered in the subsequent periods.
19.Long-term prepaid expenses
Long-term prepaid expenses include the expenditures that have been incurred but should be recognised as expenses over more 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 amortisation.
20. Employee benefits
Employee benefits include short-term employee benefits, post-employment benefits, termination benefits and other long-termemployee benefits provided in various forms of consideration in exchange for service rendered by employees or compensations forthe termination of employment relationship.
(1) Accounting treatment method of 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 recognized 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 of 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 HumanResource 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 recognized 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 recognizes 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 recognizes 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.
21. Estimated liabilities
Current obligations arising from enterprise restructuring, product quality assurance, onerous contracts, etc. are recognized asestimated liabilities when the performance of such obligations is likely to lead to the outflow of economic benefits and the amountcan be measured 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 isrecognized 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.
22 .Share-based paymentsShare-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. The Group makes thebest estimate of the number of vesting equity instruments based on the latest obtained changes in the number of vested employees,whether the required performance conditions are met, and other follow-up information. If the subsequent information indicates thenumber of exercisable equity instruments differs from the previous estimate, an adjustment is made and, on the exercise date, theestimate 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 confirm to replace the old equity instrument which is canceledin the authorization date of the new equity instrument, the new equity instrument should be disposed by using the same conditionsand terms of the old equity instrument for modifications.
23. Revenue
The Group recognizes revenue at the consideration that the Group is entitled to charge as expected when the Group has fulfilled theperformance obligations in the contract, that is, the customer obtains control over relevant goods or services.(a) Sales of goodsThe Group mainly sells flat and engineering glass, products related to solar energy, and electronic glass and displays. For domesticsales, the Group delivers the products to a certain place specified in the contract. When the buyer takes over the goods, the Grouprecognizes revenue. For export sales, the Group recognizes the revenue when it finished clearing goods for export and delivering thegoods on board the vessel, or when the goods are delivered to a certain place specified in the contract. The credit period granted bythe Group to customers is determined based on the customer's credit risk characteristics, consistent with industry practices, and thereis no major financing component. The Group’s obligation to transfer goods to customers for consideration received or receivablefrom customers is listed as contract liabilities.Revenue is presented as the net amount after deducting sales discounts and sales returns.(b) Rendering of servicesThe Group provides external consulting, loading, unloading, transportation and processing labor services, and recognizes revenuewithin a period of time based on the progress of the completed labor. The progress of the completed labor is determined according tothe proportion of the cost incurred to the estimated total cost. On the balance sheet date, the Group re-estimates the progress ofcompleted labor services so that it can reflect changes in contract performance.When the Group recognizes revenue based on the performance progress of the completed labor services, the portion for which theGroup has obtained the unconditional right to receive payments is recognized as accounts receivable, and the remaining portion isrecognized as contract assets, and the Company measures the loss reserve of accounts receivable and contract assets. According tothe expected credit loss; If the contract price received or receivable by the Group exceeds the completed progress, the excess isrecognized as contract liabilities. The Group presents the contract assets and contract liabilities under the same contract as a net
amount.
24 .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 recognized 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 recognized as deferred income, and included in profit or loss over the periods in whichthe related costs are recognized; where the grant is a compensation for related expenses or losses already incurred by the Group, thegrant is recognized 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 into non-operating income.
25. Deferred tax assets / 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 income tax assets and deferred income tax liabilities that meet the following conditions at the same time are listed as the netamount after offset:
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.26 .LeasesA leasing is a contract in which the lessor cedes the right to use an asset to the lessee for a certain period of time in return forconsideration.(a) The Group acts as the lesseeThe Company recognizes the right-of-use assets on the commencement date of the lease term and recognizes the lease liabilities atthe present value of the outstanding lease payments. The lease payments include fixed payments, as well as payments where there is
reasonable certainty that a purchase option will be exercised or a lease option will be terminated. The variable rent determined basedon a certain percentage of sales is not included in the lease payment, and is included in the current profit and loss when it actuallyoccurs. The Group will list the non-liabilities within one year that lease liabilities will be paid one year. from the balance sheet date.
On the commencement date, the Company shall initially measure the right-of-use asset at cost. The cost of the right-of-use asset shallcomprise the amount of the initial measurement of the lease liability and any lease payments made at or before the commencementdate, and any initial direct costs incurred by the lessee etc, less any lease incentives received, If ownership of the leased assettransfers to the Group at the end of the lease term, depreciation is calculated using the estimated useful life of the asset. Otherwise,the right-of-use assets are depreciated over the shorter of the lease term and the estimated useful lives of the assets. Where thecarrying amount of an asset or a cash generating unit exceeds its recoverable amount, the asset or cash generating unit is consideredimpaired and is written down to its recoverable amount.
A short-term lease is a lease that, at the commencement date, has a lease term of 12 months or less, and has a low-value asset leases.The Group does not recognize the right-of-use assets and lease liabilities. The Group recognizes lease payments on short-term leasesand leases of low-value assets in the related asset costs or profit or loss on a straight-line basis over the lease term.
The Group accounts for a lease modification as a separate lease if both:(1) the modification increases the scope of the lease by addingthe right to use one or more underlying assets; (2) the consideration for the lease increases by an amount commensurate with thestand-alone price for the increase in scope and any appropriate adjustments to that stand-alone price to reflect the circumstances ofthe particular contract.
For a lease modification that is not accounted for as a separate lease, at the effective date of the lease modification the Groupremeasures the lease liability by discounting the revised lease payments using a revised discount rate. Decreasing the carryingamount of the right-of-use asset to reflect the partial or full termination of the lease for lease modifications that decrease the scope ofthe lease. The Group recognizes in profit or loss any gain or loss relating to the partial or full termination of the lease. Other leasemodifications will remeasure lease liabilities, and the group will make a corresponding adjustment to the right-of-use asset bookvalue.(b) The Group acts as the lessorA lease that transfers substantially all the risks and rewards associated with the ownership of the leased asset is a finance lease. Otherleases are operating leases.
(i) Operating lease
When the Company operates leased buildings, machinery and equipment, and means of transport, the rental income from operatingleases shall be recognized in accordance with the straight-line method during the lease term. The Company will include variable rentdetermined based on a percentage of sales in rental income when it actually incurs. For any modification to an operating lease, theGroup treats it as a new lease from the effective date of the modification, and the received or receivable lease payments related to thelease prior to the modification are treated as lease payments of the new lease.
(ii) Finance lease
On the beginning date of the lease term, the Company recognizes the finance lease receivables for finance leases and derecognizesrelated assets. The Company presents the finance lease receivables as long-term receivables, and the finance lease receivablesreceived within one year (including one year) from the balance sheet date are presented as non-current assets due within one year.
27. 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.
28. Significant accounting policies and changes in accounting estimates
(1)Important accounting policy changes
√ Applicable □Not applicable
Contents and reasons for changes in accounting policy | Approval procedure | Remark |
On December 31, 2021, the Ministry of Finance promulgated the "Notice on Printing and Issuing" (Cai Kuai [2021] No. 35) (hereinafter referred to as "Standard Interpretation No. 15"), regarding the company's fixed assets before they reach the intended use state or The accounting treatment of external sales of products or by-products produced in the R&D process and the judgment on loss-making contracts have been clarified. Standard Interpretation No. 15 "Accounting treatment of external sales of products or by-products produced by enterprises before their fixed assets reach their intended usable state or in | The ninth meeting of the ninth board of directors and the ninth meeting of the ninth board of supervisors held on April 28, 2022 reviewed and approved the company's disclosure of accounting statements in accordance with the requirements of Standard Interpretation No. 15 from January 1, 2022. | The adoption of Interpretation No. 15 did not have a significant impact on the financial position and operating results of the Company. |
the process of research and development" and"Judgment on onerous contracts" from January 1,2022 to be implemented.
(2)Important accounting estimate changes
□ Applicable √Not applicable
29. 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 recognized. 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 |
Enterprise income tax | Taxable income | 0%-25% |
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 the current period) | 1%-13% |
City maintenance and construction tax | VAT paid | 1%-7% |
Educational surcharge | VAT paid | 5% |
2. Tax incentives
Tianjin CSG Energy-Saving Glass Co., Ltd. (“Tianjin Energy Conservation”) passed review on a high and new tech enterprise in2021 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 2021.
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. In the 2022 high-tech enterprise qualification review, the income tax rate of 15% will be temporarily applied duringthe reporting period.
Wujiang CSG East China Architectural Glass Co., Ltd. (“Wujiang CSG Engineering”) passed review on a high and new techenterprise in 2020 and obtained the Certificate of High and New Tech Enterprise, the period of validity is three years. It applies to15% tax rate for three years since 2020.
Dongguan CSG Solar Glass Co., Ltd. (“Dongguan CSG Solar”) passed review on a high and new tech enterprise in 2020 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 2020.
Yichang CSG Polysilicon Co., Ltd. (“Yichang CSG Polysilicon”) passed review on a high and new tech enterprise in 2020 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 2020.
Dongguan CSG PV-tech Co., Ltd. (“Dongguan CSG PV-tech”) 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.In the 2022 high-tech enterprise qualification review, the income tax rate of 15% will be temporarily applied duringthe reporting period.
Hebei Shichuang Glass Co., Ltd. (“Hebei Shichuang”) 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.In the 2022 high-tech enterprise qualification review, the income tax rate of 15% will be temporarily applied during thereporting period.
Wujiang CSG Glass Co., Ltd. (“Wujiang CSG”) passed review on a high and new tech enterprise in 2020, 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 2020.Xianning CSG Glass Co Ltd. (“Xianning CSG”) passed review on a high and new tech enterprise in 2020, 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 2020.
Xianning CSG Energy-Saving Glass Co., Ltd. (“Xianning CSG Energy-Saving”) passed review on a high and new tech enterprise in2021, and obtained the Certificate of High and New Tech Enterprise, and the period of validity was three years. It applies to 15% taxrate for three years since 2021.
Yichang CSG Photoelectric Glass Co., Ltd. (“Yichang CSG Photoelectric”) passed review on a high and new tech enterprise in 2021,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 2021.
Yichang CSG Display Co., Ltd (“Yichang CSG Display”) passed review on a high and new tech enterprisein 2021, 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 2021.
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.In the 2022 high-tech enterprise qualification review, the income tax rate of 15%will be temporarily applied during the reporting period.
Hebei CSG Glass Co Ltd. (“Hebei CSG”) passed review on a high and new tech enterprise in 2021, 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 2021.
Shenzhen CSG Applied Technology Co Ltd. (“Shenzhen Technology”) passed review on a high and new tech enterprise in 2021,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 2021.
Xianning CSG Photoelectric Glass Co., Ltd. (“Xianning Photoelectric”) passed review on a high and new tech enterprise in 2019 and
obtained the Certificate of High and New Tech Enterprise, the period of validity is three years. It applies to 15% tax rate for threeyears since 2019.In the 2022 high-tech enterprise qualification review, the income tax rate of 15% will be temporarily applied duringthe reporting period.
Dongguan CSG Crystal Yuxin Materials Co., Ltd. (“Dongguan Jing Yu Company”) passed review on ahigh and new tech enterprise in 2021 and obtained the Certificate of High and New Tech Enterprise, the period of validity is threeyears. It applies to 15% tax rate for three years since 2021.
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 year.
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 year.
Xian CSG Energy Conservation Glass Co., Ltd. (“Xian 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 year.
Guangxi CSG New Energy Materials Technology Co., Ltd. ( “Guangxi CSG New Energy Materials Company”) obtains enterpriseincome tax preferential treatment for Western Development, and temporarily calculates enterprise income tax at a tax rate of 15% forcurrent year.
Zhaoqing CSG New Energy Technology Co., Ltd. ( “Zhaoqing CSG New Energy Company”),Zhangzhou CSG Kibing PV EnergyCo., Ltd. (“Zhangzhou CSG PV Energy”), Heyuan CSG Kibing PV Energy Co., Ltd. (“Heyuan CSG”), and Shaoxing CSG KibingNew Energy Co., Ltd. (“Shaoxing CSG New Energy”), Xianning CSG PV Energy Co., Ltd. (“Xianning PV Energy”), ZhanjiangCSG New Energy Co., Ltd. (“Zhanjiang PV Energy”), are public infrastructure project specially supported by the state in accordancewith the Article 87 in Implementing Regulations of the Law of the People's Republic of China on Enterprise Income Tax, and canenjoy the tax preferential policy of “three-year exemptions and three-year halves”, that is, starting from the tax year when the firstrevenue from production and operation occurs, the enterprise income tax is exempted from the first to the third year, while half of theenterprise income tax is collected for the following three years.
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 | 130 | |
Cash at bank | 2,523,965,640 | 2,453,477,573 |
Other cash balances | 346,076,771 | 312,448,333 |
Total | 2,870,042,541 | 2,765,925,906 |
Including: Total overseas deposits | 19,686,544 | 8,906,359 |
The total amount of funds that have restrictions on use due to mortgages, pledges, or freezes | 6,076,772 | 9,448,334 |
2 .Trading financial assets
Unit: RMB
Item | Balance at the end of the period | Balance at the beginning of the period |
Financial assets measured at fair value through profit or loss | 1,209,000,000 | 999,600,000 |
Of which: | ||
Structured deposits | 1,209,000,000 | 999,600,000 |
Total | 1,209,000,000 | 999,600,000 |
3. 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 | 445,375 | 19,220,984 |
Total | 445,375 | 19,220,984 |
Unit: RMB
Category | Balance at the end of the period | Balance at the beginning of the period | ||||||||
Carrying amount | Provision for bad debts | Book value | Carrying amount | Provision for bad debts | Book value | |||||
Amount | Proportion | Amount | Proportion | Amount | Proportion | Amount | Proportion |
Notes receivable with provision for bad debts on a single item basis | 2,226,877 | 100% | 1,781,502 | 80% | 445,375 | 28,438,249 | 71% | 20,778,806 | 73% | 7,659,443 |
Notes receivable with bad debt provision based on portfolio | 11,561,541 | 29% | 11,561,541 | |||||||
Total | 2,226,877 | 100% | 1,781,502 | 80% | 445,375 | 39,999,790 | 100% | 20,778,806 | 52% | 19,220,984 |
Provision for bad debts on the individual basis:
Unit: RMB
Name | Closing balance | |||
Carrying amount | Provision for bad debts | Proportion | Reasons for withdrawal | |
Notes receivable with provision for bad debts on a single item basis | 2,226,877 | 1,781,502 | 80% | It mainly represented trade acceptance notes due from evergrande of the part of subsidiary, due to difficult to pay or deterioration of cash operations, the provision for bad debts was fully or partially accrued. |
Total | 2,226,877 | 1,781,502 |
(2)Provision for bad debts accrued, recovered or reversed in the current period
Provision for bad debts in the current period:
Unit: RMB
Category | Opening balance | Amount of change in the current period | Closing balance | |||
Provision | Collect or reversal | Write-off | Transfer to Accounts Receivable | |||
Individual provision for bad debts | 20,778,806 | 18,997,304 | 1,781,502 | |||
Total | 20,778,806 | 18,997,304 | 1,781,502 |
(3)At the end of the period, the company transferred the bills to accounts receivable due to the failure of the drawer toperform
Unit: RMB
Item | Amount of receivables transferred at the end of the period |
Trade acceptance notes | 27,584,466 |
Total | 27,584,466 |
4.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 | 182,594,849 | 19% | 120,581,801 | 66% | 62,013,048 | 159,936,493 | 19% | 103,566,693 | 65% | 56,369,800 |
Provision for bad debts by portfolio | 796,194,994 | 81% | 15,924,375 | 2% | 780,270,619 | 687,914,171 | 81% | 13,758,284 | 2% | 674,155,887 |
Total | 978,789,843 | 100% | 136,506,176 | 14% | 842,283,667 | 847,850,664 | 100% | 117,324,977 | 14% | 730,525,687 |
Provision for bad debts on the individual basis:
Unit: RMB
Name | Closing balance | |||
Carrying amount | Provision for bad debts | Proportion | Reasons for withdrawal | |
Provision for bad debts on the individual basis | 182,594,849 | 120,581,801 | 66% | It mainly represented the goods receivable due from a client of the part of subsidiary, due to business dispute or deterioration of customer operations, the provision for bad debts was fully or partially accrued. |
Total | 182,594,849 | 120,581,801 |
Provision for bad debts by portfolio:
Unit: RMB
Name | Closing balance | ||
Carrying amount | Provision for bad debts | Proportion | |
Portfolio 1 | 796,194,994 | 15,924,375 | 2% |
Total | 796,194,994 | 15,924,375 |
Disclosure by the aging of accounts receivable
Unit: RMB
Aging | Closing balance |
Within 1 year (including 1 year) | 708,817,267 |
1 to 2 years | 170,870,147 |
2 to 3 years | 48,962,202 |
Over 3 years | 50,140,227 |
Total | 978,789,843 |
(2)Provision for bad debts accrued, recovered or reversed in the current period
Provision for bad debts in the current period:
Unit: RMB
Category | Opening balance | Amount of change in the current period | Closing balance | |||
Provision | Bills receivable transferred in | Collect or reversal | Write-off | |||
Accounts receivable bad debt provision | 117,324,977 | 6,976,393 | 18,997,304 | 5,880,424 | 912,074 | 136,506,176 |
Total | 117,324,977 | 6,976,393 | 18,997,304 | 5,880,424 | 912,074 | 136,506,176 |
(3)Accounts receivable actually written off in the current period
Unit: RMB
Item | Amount written off |
Accounts receivable from subsidiaries | 912,074 |
(4)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 | 328,308,132 | 34% | 49,011,582 |
Total | 328,308,132 | 34% |
5.Receivables financing
Unit: RMB
Item | Closing balance | Opening balance |
Bank acceptance notes | 582,328,808 | 297,046,123 |
Total | 582,328,808 | 297,046,123 |
6. Advances to suppliers
(1)Listed by aging analysis
Unit: RMB
Aging | Closing balance | Opening balance | ||
Amount | Proportion | Amount |
within1year | 234,152,262 | 100% | 74,971,763 | 98% |
1 to 2years | 618,299 | 486,849 | 1% | |
2 to 3years | 35,000 | 520,498 | 1% | |
over 3 years | 520,498 | 118,166 | ||
Total | 235,326,059 | 76,097,276 |
(2)Top 5 of the closing balance of the advances to suppliers collected according to the target
Unit: RMB
Item | Balance | Percentage in total advances to suppliers balance |
Total balances for the five largest advances to suppliers | 135,780,759 | 58% |
7. Other receivables
Unit: RMB
Item | Closing balance | Opening balance |
Other receivables | 201,090,652 | 183,696,711 |
Total | 201,090,652 | 183,696,711 |
(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 |
Payments made on behalf of other parties | 48,887,030 | 47,686,819 |
Advance payment (i) | 10,366,164 | 10,366,164 |
Refundable deposits | 19,669,918 | 9,191,412 |
Petty cash | 1,572,171 | 497,273 |
Others | 13,123,214 | 8,110,638 |
Total | 264,618,497 | 246,852,306 |
(i) It is the prepayment for materials of the subsidiary Yingde CBM Mining Co., Ltd. The prepayments accounts were transferred toother 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 impairment occurred) | Expected credit loss for the entire duration (credit impairment occurred) | ||
Balance on1 January 2022 | 1,166,526 | 61,989,069 | 63,155,595 | |
Balance on1 January 2022in current period |
Withdrawal | 412,069 | 412,069 | ||
Recovery | 15,816 | 15,816 | ||
Write-off | 24,003 | 24,003 | ||
Balance on 30 June 2022 | 1,538,776 | 61,989,069 | 63,527,845 |
3)Disclosure by the aging of other receivables
Unit: RMB
Aging | Closing balance |
Within 1 year (including 1 year) | 55,141,858 |
1 to 2 years | 8,856,860 |
2 to 3 years | 910,743 |
Over 3 years | 199,709,036 |
3 to 4 years | 2,619,497 |
4 to 5 years | 2,042,730 |
Over 5 years | 195,046,809 |
Total | 264,618,497 |
4)Provision for bad debts withdrawn, recovered or reversed during the report 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 of other receivables | 63,155,595 | 412,069 | 15,816 | 24,003 | 63,527,845 | |
Total | 63,155,595 | 412,069 | 15,816 | 24,003 | 63,527,845 |
5)Other receivables actually written off in the current period
Unit: RMB
Item | Write-off amount |
Other receivables | 24,003 |
6)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 | Aging | 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 | 65% | 51,300,000 |
Governmental | Independent third | 24,000,000 | Within 1 year | 9% | 480,000 |
department B | party | ||||
Governmental department C | Independent third party | 11,556,004 | Over 5 years | 4% | 231,120 |
Company D | Independent third party | 10,366,164 | Over 5 years | 4% | 10,366,164 |
Governmental department E | Independent third party | 10,000,000 | Within 1 year | 4% | 200,000 |
Total | 226,922,168 | 86% | 62,577,284 |
8. Inventories
(1) Inventory classification
Unit: RMB
Item | Closing balance | Opening balance | ||||
Carrying amount | Reserve for depreciation of inventory | Book value | Carrying amount | Reserve for depreciation of inventory | Book value | |
Raw materials | 697,911,751 | 976,330 | 696,935,421 | 389,937,319 | 1,002,085 | 388,935,234 |
Products in process | 32,012,843 | 32,012,843 | 22,801,437 | 22,801,437 | ||
Products in stock | 984,442,555 | 1,851,314 | 982,591,241 | 632,814,981 | 5,829,059 | 626,985,922 |
Material in circulation | 55,533,224 | 160,330 | 55,372,894 | 55,480,764 | 397,832 | 55,082,932 |
Total | 1,769,900,373 | 2,987,974 | 1,766,912,399 | 1,101,034,501 | 7,228,976 | 1,093,805,525 |
(2)Provision for decline in the value of inventories
单位:元
Item | Opening balance | Increased in this term | Decreased in this term | Closing balance | ||
Provision | Others | Reversal or write off | Others | |||
Raw materials | 1,002,085 | 25,755 | 976,330 | |||
Products in stock | 5,829,059 | 3,977,745 | 1,851,314 | |||
Material in circulation | 397,832 | 237,502 | 160,330 | |||
Total | 7,228,976 | 4,241,002 | 2,987,974 |
9.Other current assets
Unit: RMB
Item | Closing balance | Opening balance |
VAT to be offset | 50,432,826 | 128,033,622 |
Enterprise income tax prepaid | 8,211,086 | 3,771,709 |
VAT input to be recognized | 9,956,323 | 8,888,295 |
Others | 16,435 | 11,672 |
Total | 68,616,670 | 140,705,298 |
10. Investment property
(1)Investment real estate using cost measurement model
□Applicable √Not applicable
(2)Investment property with fair value measurement mode
√Applicable □ Not applicable
Unit: RMB
Item | Houses, buildings and related land use rights | Total |
I. Opening balance | 383,084,500 | 383,084,500 |
II. Changes in the current period | ||
III. Closing balance | 383,084,500 | 383,084,500 |
11. Fixed assets
Unit: RMB
Item | Closing balance | Opening balance |
Fixed assets | 9,336,413,529 | 8,566,515,026 |
Total | 9,336,413,529 | 8,566,515,026 |
(1)Particulars of fixed assets
Unit: RMB
Item | Buildings | Machinery and equipment | Motor vehicles | Total |
I. Original book value: | ||||
1. Opening balance | 4,175,491,233 | 12,040,306,471 | 257,186,014 | 16,472,983,718 |
2. Increased amount of the period | ||||
(1) Acquisition | 2,061,137 | 21,622,510 | 8,356,693 | 32,040,340 |
(2) Transfers from construction in progress | 388,181,424 | 1,841,384,996 | 6,455,298 | 2,236,021,718 |
(3)Increase in business mergers | ||||
(4) Others | 3,107,362 | 2,009,907 | 5,117,269 | |
3. Decreased amount of the period | ||||
(1) Disposal or retirement | 243,357 | 31,222,551 | 7,380,031 | 38,845,939 |
(2) Transfer to construction in progress | 183,920,987 | 324,752,456 | 401,729 | 509,075,172 |
(3) Others | 1,721,971 | 822,894 | 180,124 | 2,724,989 |
4. Closing balance | 4,379,847,479 | 13,549,623,438 | 266,046,028 | 18,195,516,945 |
II. Accumulative |
Item | Buildings | Machinery and equipment | Motor vehicles | Total |
depreciation | ||||
1. Opening balance | 1,129,349,070 | 5,532,791,435 | 230,711,343 | 6,892,851,848 |
2. Increased amount of the period | ||||
(1) Provision | 63,927,057 | 358,444,891 | 13,123,636 | 435,495,584 |
(2) Others | 908,372 | 287,308 | 1,195,680 | |
3. Decreased amount of the period | ||||
(1) Disposal or retirement | 34,034 | 5,782,357 | 7,232,019 | 13,048,410 |
(2) Transfer to construction in progress | 47,589,170 | 240,194,191 | 299,369 | 288,082,730 |
(3) Others | 372,612 | 155,946 | 6,861 | 535,419 |
4. Closing balance | 1,145,280,311 | 5,646,012,204 | 236,584,038 | 7,027,876,553 |
III. Impairment provision | ||||
1. Opening balance | 59,901,148 | 953,451,046 | 264,650 | 1,013,616,844 |
2. Increased amount of the period | ||||
(1) Construction in progress transferred in | 111,232,516 | 730,885,926 | 528,767 | 842,647,209 |
3. Decreased amount of the period | ||||
(1) Disposal or scrap | 25,037,190 | 25,037,190 | ||
4. Closing balance | 171,133,664 | 1,659,299,782 | 793,417 | 1,831,226,863 |
IV. Book value | ||||
1. Closing book value | 3,063,433,504 | 6,244,311,452 | 28,668,573 | 9,336,413,529 |
2. Opening book value | 2,986,241,015 | 5,554,063,990 | 26,210,021 | 8,566,515,026 |
(2)Fixed assets with pending certificates of ownership
Unit: RMB
Item | Carrying amount | Reasons for not yet obtaining certificates of title |
Buildings | 783,783,208 | Have submitted the required documents and are in the process of application, or the related land use right certificate pending |
12. Construction in process
Unit: RMB
Item | Closing balance | Opening balance |
Construction in process | 2,809,337,684 | 2,461,088,650 |
Total | 2,809,337,684 | 2,461,088,650 |
(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 | 1,535,368,156 | 857,890,185 | 677,477,971 | |||
Anhui Lightweight & high-permeability panel for solar energy equipment manufacturing base project | 1,541,203,471 | 1,541,203,471 | 765,170,527 | 765,170,527 | ||
Qingyuan New Materials Phase I technical transformation project | 221,679,025 | 94,897,537 | 126,781,488 | 297,932,280 | 174,675,600 | 123,256,680 |
Zhaoqing CSG high-grade energy saving glass production line project | 55,183,034 | 55,183,034 | 279,138,811 | 279,138,811 | ||
Dongguan PV B Building 450MW PERC battery technology upgrade project | 186,866,743 | 184,998,076 | 1,868,667 | 186,866,743 | 184,998,076 | 1,868,667 |
Tianjin Energy-saving Coating Production Line Purchase and Upgrade Project | 95,225,037 | 95,225,037 | ||||
Xianning CSG 1200T/D Photovoltaic Packaging Material Production Line Project | 287,738,732 | 287,738,732 | 66,449,089 | 66,449,089 | ||
Anhui Fengyang quartz sand project | 253,100 | 253,100 | 56,656,483 | 56,656,483 | ||
Wujiang Architectural | 70,192,064 | 70,192,064 | 51,766,295 | 51,766,295 |
Item | Closing balance | Opening balance | ||||
Book balance | Provision for impairment loss | Book value | Book balance | Provision for impairment loss | Book value | |
Glass newly building intelligent manufacturing plant construction project | ||||||
Wujiang Float Lightweight and High-efficiency double-glass processing production line construction project | 106,468,188 | 106,468,188 | 39,032,912 | 39,032,912 | ||
LED Sapphire Substrate Project | 32,420,412 | 32,420,412 | 32,420,412 | 32,420,412 | ||
Zhaoqing CSG high-grade automobile glass production line project | 54,688,369 | 54,688,369 | 27,941,928 | 27,941,928 | ||
Hebei Panel Glass ultra-thin electronic glass Line II construction project | 75,707,997 | 75,707,997 | 24,393,421 | 24,393,421 | ||
Dongguan solar double-glass extension technology transformation upgrade project | 274,502,743 | 274,502,743 | 2,389,871 | 2,389,871 | ||
Dongguan solar light and high-efficiency double-glass processing production line construction project | 2,000,908 | 2,000,908 | 551,795 | 551,795 | ||
Guangxi Beihai Photovoltaic Green Energy Industry Park (Phase I) Project | 3,080,041 | 3,080,041 | 382,997 | 382,997 | ||
Hefei CSG | 820,064 | 820,064 |
Item | Closing balance | Opening balance | ||||
Book balance | Provision for impairment loss | Book value | Book balance | Provision for impairment loss | Book value | |
Energy-saving Glass Intelligent Manufacturing Industry Base Project | ||||||
Dongguan Solar G6/G7 Line Process and Equipment Upgrading Project | 20,679,019 | 20,679,019 | ||||
Others | 212,266,126 | 24,096,327 | 188,169,799 | 275,679,766 | 26,293,600 | 249,386,166 |
Total | 3,145,750,036 | 336,412,352 | 2,809,337,684 | 3,737,366,523 | 1,276,277,873 | 2,461,088,650 |
(2) Changes in important construction projects in the 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 | 1,535,368,156 | 1,511,107,324 | 24,260,832 | 100% | 100% | Internal fund and bank loan | |||||
Anhui Lightweight & high-permeability panel for solar energy equipment manufacturing base project | 3,739,020,000 | 765,170,527 | 776,565,916 | 532,972 | 1,541,203,471 | 41% | 85% | 17,468,116 | 15,022,618 | 4.20% | Internal fund and bank loan | |
Qingyuan New Materials Phase I technical transformation project | 534,870,000 | 297,932,280 | 4,614,306 | 363,834 | 80,503,727 | 221,679,025 | 4% | 4% | Internal fund and bank loan | |||
Zhaoqing CSG high-grade energy saving glass production line project | 500,000,000 | 279,138,811 | 27,140,143 | 251,085,070 | 10,850 | 55,183,034 | 74% | 89% | 5,405,566 | 1,250,641 | 3.80% | Internal fund and bank loan |
Dongguan PV B Building 450MW PERC battery technology upgrade project | 100,990,000 | 186,866,743 | 186,866,743 | 1% | 3% | Internal fund and bank loan |
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 |
Tianjin Energy-saving Coating Production Line Purchase and Upgrade Project | 114,945,000 | 95,225,037 | 5,636,400 | 100,861,437 | 100% | 100% | 2,644,397 | 1,134,116 | 4% | Internal fund and bank loan | ||
Xianning CSG 1200T/D Photovoltaic Packaging Material Production Line Project | 858,090,000 | 66,449,089 | 221,289,643 | 287,738,732 | 33% | 65% | 10,778,660 | 5,655,493 | 4.52% | Internal fund and bank loan | ||
Anhui Fengyang quartz sand project | 1,029,300,000 | 56,656,483 | 83,192,287 | 139,595,670 | 253,100 | 14% | 56% | 1,144,948 | 1,026,584 | 4.55% | Internal fund and bank loan | |
Wujiang Architectural Glass newly building intelligent manufacturing plant construction project | 179,140,610 | 51,766,295 | 18,921,344 | 495,575 | 70,192,064 | 40% | 45% | 819,017 | 497,923 | 3.85% | Internal fund and bank loan | |
Wujiang Float Lightweight and High-efficiency double-glass processing production line construction project | 158,850,000 | 39,032,912 | 69,360,586 | 1,925,310 | 106,468,188 | 67% | 80% | 1,212,348 | 824,392 | 4% | Internal fund and bank loan | |
LED Sapphire | 35,000,000 | 32,420,412 | 32,420,412 | 93% | 93% | 4,650,543 | Internal |
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 |
Substrate Project | fund and bank loan | |||||||||||
Zhaoqing CSG high-grade automobile glass production line project | 609,830,000 | 27,941,928 | 26,746,441 | 54,688,369 | 9% | 13% | Internal fund and bank loan | |||||
Hebei Panel Glass ultra-thin electronic glass Line II construction project | 284,964,800 | 24,393,421 | 51,867,735 | 553,159 | 75,707,997 | 30% | 50% | 645,947 | 645,568 | 4.35% | Internal fund and bank loan | |
Dongguan solar double-glass extension technology transformation upgrade project | 143,490,000 | 2,389,871 | 272,112,872 | 274,502,743 | 57% | 60% | 461,552 | 461,552 | 3.56% | Internal fund and bank loan | ||
Dongguan solar light and high-efficiency double-glass processing production line construction project | 76,140,000 | 551,795 | 1,449,113 | 2,000,908 | 77% | 100% | Internal fund and bank loan |
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 |
Guangxi Beihai Photovoltaic Green Energy Industry Park (Phase I) Project | 4,942,051,800 | 382,997 | 2,822,610 | 125,566 | 3,080,041 | 2% | Internal fund and bank loan | |||||
Hefei CSG Energy-saving Glass Intelligent Manufacturing Industry Base Project | 210,190,000 | 820,064 | 820,064 | Internal fund and bank loan | ||||||||
Dongguan Solar G6/G7 Line Process and Equipment Upgrading Project | 59,260,000 | 20,679,019 | 20,679,019 | 6% | Internal fund and bank loan | |||||||
Others | 1,320,351,179 | 275,679,766 | 173,035,132 | 229,501,367 | 6,947,405 | 212,266,126 | 297,042 | 221,232 | Internal fund and bank loan | |||
Total | 14,946,003,389 | 3,737,366,523 | 1,756,253,611 | 2,236,021,718 | 111,848,380 | 3,145,750,036 | 45,528,136 | 26,740,119 |
13. Right of use assets
Unit: RMB
Item | Lease Land | Rental housing | Total |
I. Original book value: | |||
1. Opening balance | 9,770,358 | 1,897,983 | 11,668,341 |
2. Increased amount of the period | |||
3. Decreased amount of the period | |||
(1) Others | 473,610 | 473,610 | |
4. Closing balance | 9,296,748 | 1,897,983 | 11,194,731 |
II. Accumulative depreciation | |||
1. Opening balance | 942,985 | 813,421 | 1,756,406 |
2. Increased amount of the period | |||
(1) Provision | 470,592 | 406,711 | 877,303 |
3. Decreased amount of the period | |||
(1) Others | 473,610 | 473,610 | |
4. Closing balance | 939,967 | 1,220,132 | 2,160,099 |
III. Impairment provision | |||
IV. Book value | |||
1. Closing book value | 8,356,781 | 677,851 | 9,034,632 |
2. Opening book value | 8,827,373 | 1,084,562 | 9,911,935 |
14. Intangible assets
(1) Particulars of intangible assets
Unit: RMB
Item | Land use rights | Patents and know-how | Exploitation rights | Others | Total |
I. Original book value: | |||||
1. Opening balance | 1,169,898,169 | 428,988,220 | 5,651,751 | 46,713,240 | 1,651,251,380 |
2. Increased amount of this period | |||||
(1) Acquisition | 62,606,655 | 2,708,775 | 65,315,430 |
Item | Land use rights | Patents and know-how | Exploitation rights | Others | Total |
(2) Internal R&D | 8,010,026 | 8,010,026 | |||
(3) Others | 165,706 | 165,706 | |||
3. Decreased amount of the period | |||||
(1) Others | 259,999 | 259,999 | |||
4. Closing balance | 1,232,504,824 | 436,998,246 | 5,651,751 | 49,327,722 | 1,724,482,543 |
II.Accumulated amortization | |||||
1. Opening balance | 230,710,042 | 194,971,917 | 4,591,610 | 40,155,929 | 470,429,498 |
2. Increased amount of this period | |||||
(1) Provision | 12,270,060 | 16,414,041 | 91,729 | 2,632,668 | 31,408,498 |
3. Decreased amount of the period | |||||
(1) Others | 91,001 | 91,001 | |||
4. Closing balance | 242,980,102 | 211,385,958 | 4,683,339 | 42,697,596 | 501,746,995 |
III. Impairment provision | |||||
1. Opening balance | 13,201,347 | 9,133 | 13,210,480 | ||
2. Closing balance | 13,201,347 | 9,133 | 13,210,480 | ||
IV. Book value | |||||
1. Closing book value | 989,524,722 | 212,410,941 | 968,412 | 6,620,993 | 1,209,525,068 |
2. Opening book value | 939,188,127 | 220,814,956 | 1,060,141 | 6,548,178 | 1,167,611,402 |
At the end of the period, the intangible assets arising from internal research and development accounted for 20.07% of total ofintangible assets.
(2) Land use rights without property right certificates
Unit: RMB
Item | Book value | Reason for not yet obtaining certificates of title |
Land use rights | 4,903,343 |
As at June 30, 2022, ownership certificates of land use right (“Land ownership Certificates”) for certain land use rights of the Groupwith carrying amounts of approximately RMB4,903,343 (cost: RMB6,685,352) had not yet been obtained by the Group (as atDecember 31, 2021, carrying amount: RMB4,963,913, cost: RMB6,685,352). 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.
15. 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 | Recognized as intangible assets | Transfer to current profit and loss | |||
Development expenditure | 72,019,362 | 27,709,486 | 8,010,026 | 91,718,822 | ||
Total | 72,019,362 | 27,709,486 | 8,010,026 | 91,718,822 |
During Jan.-Jun. 2022, the total amount of research and development expenditures of the Group was RMB 293,587,416 (Jan.-Jun.2021: RMB 235,137,041), including RMB265,877,930 (Jan.-Jun. 2021: RMB 224,886,882) recorded in income statement for currentperiod and the research and development expenditure with the amount of RMB 8,010,026 recognized as intangible assets for thecurrent period (Jan.-Jun. 2021: 1,247,970). At June 30, 2022, the intangible assets arising from internal research and developmentaccounted for 20.07% of total of intangible assets (31 December 2021: 20.47%).
16. Goodwill
(1) Book value of goodwill
Unit: RMB
Name of the companies | 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 of the companies | Opening balance | Increased this term | Decreased this term | Closing balance |
Shenzhen CSG Displayer | 267,244,297 | 267,244,297 | ||
Total | 267,244,297 | 267,244,297 |
17. Long-term prepaid expenses
Unit: RMB
Item | Opening balance | Increased this term | Amortized this term | Other decreases |
Expenses to be amortized | 3,013,721 | 510,145 | 289,845 | 3,234,021 |
Total | 3,013,721 | 510,145 | 289,845 | 3,234,021 |
18. 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 | 900,912,768 | 136,375,295 | 1,005,602,209 | 152,036,386 |
Deductible loss | 309,731,654 | 59,171,312 | 621,359,522 | 106,718,563 |
Government grants | 167,900,580 | 25,975,215 | 165,972,475 | 25,755,549 |
Accrued expenses | 6,019,406 | 902,911 | 7,908,397 | 1,186,260 |
Inventory unrealized profit | 40,952,102 | 6,091,553 | 50,797,613 | 7,619,642 |
Depreciation of fixed assets | 67,473,650 | 14,344,275 | 65,556,309 | 13,582,668 |
Total | 1,492,990,160 | 242,860,561 | 1,917,196,525 | 306,899,068 |
(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 | 533,523,643 | 81,918,910 | 527,215,830 | 80,756,420 |
Changes in fair value of investment property | 370,245,713 | 55,536,857 | 370,245,713 | 55,536,857 |
Total | 903,769,356 | 137,455,767 | 897,461,543 | 136,293,277 |
(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 | 46,199,114 | 196,661,447 | 51,713,145 | 255,185,923 |
Deferred tax liabilities | 46,199,114 | 91,256,653 | 51,713,145 | 84,580,132 |
(4) Details of unrecognized deferred income tax assets
Unit: RMB
Item | Closing balance | Opening balance |
Deductible losses | 2,046,255,537 | 2,045,391,888 |
Total | 2,046,255,537 | 2,045,391,888 |
(5) Deductible losses of unrecognized deferred income tax assets will due the following years
Unit: RMB
Year | Closing balance | Opening balance | Note |
Year of 2022 | 83,303,539 | 83,303,539 | |
Year of 2023 | 146,238,837 | 146,238,837 | |
Year of 2024 | 178,208,832 | 178,208,832 | |
Year of 2025 | 939,085,536 | 939,085,536 | |
Year of 2026 | 698,555,144 | 698,555,144 | |
Year of 2027 | 863,649 | ||
Total | 2,046,255,537 | 2,045,391,888 |
19. 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 | 361,724,043 | 361,724,043 | 469,352,622 | 469,352,622 | ||
Prepayment for lease of land use rights | 64,250,000 | 64,250,000 | 14,810,000 | 14,810,000 | ||
Large-denominati | 100,000,000 | 100,000,000 | 100,000,000 | 100,000,000 |
on certificates of deposit | ||||||
Total | 525,974,043 | 525,974,043 | 584,162,622 | 584,162,622 |
20. Short-term borrowings
(1) Classification of short-term borrowings
Unit: RMB
Item | Closing balance | Opening balance |
Guaranteed loan | 168,108,522 | 80,770,000 |
Unsecured loan | 300,000,000 | 100,000,000 |
Total | 468,108,522 | 180,770,000 |
(i)On June 30, 2022, the Company provided guarantees for short-term loans of RMB168,108,522 (31 December 2021: RMB80,770,000).(ii) On June 30, 2022, the interest rate range of Short-term borrowings is 2.70% - 4.05% (December 31, 2021: 3.40% - 3.90%).
21. Notes payable
Unit: RMB
Item | Closing balance | Opening balance |
Trade acceptance notes | 145,475,638 | 107,571,279 |
Bank acceptance notes | 404,463,990 | 293,091,434 |
Total | 549,939,628 | 400,662,713 |
22. Contract liabilities
Unit: RMB
Item | Closing balance | Opening balance |
Contract liabilities | 413,885,125 | 335,188,642 |
Total | 413,885,125 | 335,188,642 |
23. Accounts payable
(1) List of accounts payable
Unit: RMB
Item | Closing balance | Opening balance |
Materials payable | 945,889,859 | 665,770,883 |
Equipment payable | 244,832,123 | 268,623,795 |
Construction expenses payable | 433,608,433 | 372,802,783 |
Freight payable | 78,993,780 | 68,894,843 |
Utilities payable | 88,134,291 | 47,260,003 |
Others | 5,474,045 | 5,499,005 |
Total | 1,796,932,531 | 1,428,851,312 |
(2) Significant accounts payable due for over one year
Unit: RMB
Item | Closing balance | Unpaid reason |
Construction and equipments | 172,773,389 | The final account of the project has not been completed, so it has not been settled. |
Total | 172,773,389 |
24. 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 benefits payable | 426,027,259 | 881,217,123 | 1,019,531,915 | 287,712,467 |
II. Welfare after departure- defined contribution plans | 11,722 | 73,417,024 | 73,412,071 | 16,675 |
III.Termination benefits | 173,998 | 1,462,816 | 1,636,814 | |
Total | 426,212,979 | 956,096,963 | 1,094,580,800 | 287,729,142 |
(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 | 402,716,350 | 818,189,015 | 958,424,388 | 262,480,977 |
2. Social security contributions | 5,808 | 31,093,375 | 31,087,818 | 11,365 |
Including: Medical insurance | 5,097 | 27,629,935 | 27,624,254 | 10,778 |
Work injury insurance | 291 | 2,411,059 | 2,410,763 | 587 |
Maternity insurance | 420 | 1,052,381 | 1,052,801 |
3. Housing funds | 958,798 | 22,181,389 | 21,933,449 | 1,206,738 |
4.Labour union funds and employee education funds | 22,346,303 | 9,753,344 | 8,086,260 | 24,013,387 |
Total | 426,027,259 | 881,217,123 | 1,019,531,915 | 287,712,467 |
(3) List of defined contribution plans
Unit: RMB
Item | Opening balance | Increased this term | Decreased this term | Closing balance |
1. Basic pensions | 11,644 | 71,000,361 | 70,995,998 | 16,007 |
2. Unemployment insurance | 78 | 2,416,663 | 2,416,073 | 668 |
Total | 11,722 | 73,417,024 | 73,412,071 | 16,675 |
25. Tax payable
Unit: RMB
Item | Closing balance | Opening balance |
Value-added-tax payable | 63,220,964 | 77,539,743 |
Corporate income tax payable | 63,421,971 | 81,469,865 |
Individual income tax payable | 5,291,100 | 4,947,559 |
City maintenance and construction tax | 4,221,243 | 5,853,393 |
Property tax | 9,979,982 | 4,126,693 |
Education surcharge | 3,232,672 | 4,662,534 |
Environmental tax | 1,308,540 | 1,674,797 |
Others | 3,975,678 | 4,735,097 |
Total | 154,652,150 | 185,009,681 |
26. Other payables
Unit: RMB
Item | Closing balance | Opening balance |
Interest payable | 36,640,548 | 95,001,362 |
Other payables | 185,226,388 | 194,439,115 |
Total | 221,866,936 | 289,440,477 |
(1) Interest payable
Unit: RMB
Item | Closing balance | Opening balance |
Interest on long-term loans with interest paid by installments and principal repaid at maturity | 3,722,120 | 2,558,374 |
Interest payable for short-term borrowings | 660,363 | 184,923 |
Interest for corporate bonds | 32,258,065 | 92,258,065 |
Total | 36,640,548 | 95,001,362 |
(2) Other payables
1) Listing other payables by nature of the payment
Unit: RMB
Item | Closing balance | Opening balance |
Guarantee deposits received from construction contractors | 101,021,553 | 101,467,608 |
Accrued operating costs and expenses(i) | 39,421,751 | 51,592,989 |
Payable for contracted labour costs | 22,061,379 | 21,273,645 |
Temporary receipts | 9,630,262 | 6,033,599 |
Guarantee for disabled | 6,727,370 | 5,796,364 |
Others | 6,364,073 | 8,274,910 |
Total | 185,226,388 | 194,439,115 |
(i) This item mainly includes various expenses incurred but not yet obtained an invoice at the end of the period, including utilities,professional service fees, travel expenses, etc.
27. Non-current liabilities due within one year
Unit: RMB
Item | Closing balance | Opening balance |
Bonds payable due within one year | 1,997,931,024 | |
Long-term borrowings due within 1 year | 335,498,431 | 466,098,352 |
Long-term payables due within one year | 37,830,760 | 36,865,104 |
Lease liabilities due within one year | 653,324 | 857,092 |
Total | 2,371,913,539 | 503,820,548 |
28. Other current liabilities
Unit: RMB
Item | Closing balance | Opening balance |
Output tax to be transferred | 47,430,142 | 39,799,309 |
Others | 300,000 | 300,000 |
Total | 47,730,142 | 40,099,309 |
29. Long-term borrowings
(1) Classification of long-term borrowings
Unit: RMB
Item | Closing balance | Opening balance |
Guaranteed | 1,916,136,468 | 779,059,824 |
Credit loan | 1,245,000,000 | 690,000,000 |
Total | 3,161,136,468 | 1,469,059,824 |
As at 30 June 2022, the interest of long-term borrowings varied from 2.95%-4.60% (31 December 2021: 4%-4.6%).
30. Bonds payable
(1) Bonds payable
Unit: RMB
Item | Closing balance | Opening balance |
Bonds payable | 1,996,587,330 | |
Total | 1,996,587,330 |
(2) Increase or decrease of bonds payable (excluding preferred shares, perpetual bonds and other financial instrumentsclassified 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 | Reclassified to non-current liabilities due within one year | Closing balance |
20 CSG 01 | 100 | 2020-3-24 to 2020-3-25 | 3 years | 2,000,000,000 | 1,996,587,330 | 60,000,000 | 1,343,694 | 1,997,931,024 |
In March 2020, with the approval of China Securities Regulatory Commission, the company was approved to publicly issue 2020corporate bonds (phase I) to qualified investors, with a face value of RMB 100, an issue amount of RMB 2 billion, a term of 3 years(annual interest payment and principal repayment at maturity), and a coupon rate of 6%; The issuance date is from March 24, 2020 toMarch 25, 2020, and the value date is March 25, 2020.
31.Lease liability
Unit: RMB
Item | Closing balance | Opening balance |
Lease liability | 220,138 | |
Total | 220,138 |
32.Long-term payables
Unit: RMB
Item | Closing balance | Opening balance |
Long-term payables | 149,062,955 | 168,258,062 |
Total | 149,062,955 | 168,258,062 |
(1)Long-term payables by nature of payment
Unit: RMB
Item | Closing balance | Opening balance |
Finance lease payable | 149,062,955 | 168,258,062 |
33. Deferred income
Unit: RMB
Item | Opening balance | Increase in current period | decrease in current period | Closing balance |
Government grants | 564,129,128 | 3,000,000 | 71,815,510 | 495,313,618 |
Total | 564,129,128 | 3,000,000 | 71,815,510 | 495,313,618 |
Projects involving government subsidies:
Unit: RMB
Item in debt | Opening balance | Increase in current period | Account to other income in this period | Closing balance | Related to assets or income |
Tianjin CSG Golden Sun Project (i) | 40,217,551 | 1,687,446 | 38,530,105 | Assets related | |
Dongguan CSG Golden Sun Project (ii) | 32,324,250 | 1,375,500 | 30,948,750 | Assets related | |
Hebei CSG Golden Sun Project (iii) | 33,000,000 | 1,375,000 | 31,625,000 | Assets related | |
Xianning CSG Golden Sun Project (iv) | 35,860,917 | 1,515,250 | 34,345,667 | Assets related |
Item in debt | Opening balance | Increase in current period | Account to other income in this period | Closing balance | Related to assets or income |
Infrastructure compensation for Wujiang CSG Glass Co., Ltd (v) | 23,462,746 | 2,020,769 | 21,441,977 | Assets related | |
Qingyuan Energy-saving project (vi) | 10,909,167 | 1,235,000 | 9,674,167 | Assets related | |
Yichang Silicon products project (vii) | 10,546,875 | 1,406,250 | 9,140,625 | Assets related | |
Yichang CSG silicon slice auxiliary project (viii) | 19,100,966 | 2,500,000 | 991,272 | 20,609,694 | Assets related |
Sichuan energy-saving glass project (ix) | 3,859,380 | 827,010 | 3,032,370 | Assets related | |
Group coating film experimental project (x) | 1,500,000 | 187,500 | 1,312,500 | Assets related | |
Yichang high purity silicon material project (xi) | 2,417,619 | 151,589 | 2,266,030 | Assets related | |
Yichang semiconductor silicon material project (xii) | 2,866,666 | 66,667 | 2,799,999 | Assets related | |
Yichang CSG Display project (xiii) | 40,565,357 | 1,333,906 | 39,231,451 | Assets related | |
Xianning Photoelectric project (xiv) | 6,240,000 | 134,162 | 6,105,838 | Assets related | |
Shenzhen medical equipment subsidy project(xv) | 7,178,000 | 582,000 | 6,596,000 | Assets related | |
Hebei float emission reward (xvi) | 9,355,414 | 366,879 | 8,988,535 | Assets related | |
Group talent fund project (xvi) | 171,000,000 | 171,000,000 | Income related | ||
Zhaoqing energy saving industry support fund project(xvii) | 87,255,711 | 54,579,905 | 32,675,806 | Income related | |
Others | 26,468,509 | 500,000 | 1,979,405 | 24,989,104 | Assets related |
Total | 564,129,128 | 3,000,000 | 71,815,510 | 495,313,618 |
(i) The allowance was granted by Tianjin Municipal Government. The allowance was used for establishing PV power station byTianjin Energy Conservation Company. The facilities belonged to Tianjin Energy Conservation Company. The allowance will becredited to 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 stationby Dongguan 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 granted by Guangdong Province and which was a pilot project for strategic emerging industry clustersdevelopment and was used to establish high performance ultra-thin electronic glass production lines by Qingyuan CSG. Theallowance will be credited to income statement in 10 years, the useful life of the production line.(vii) The balance represented amounts granted to Yi Chang CSG polysilicon Materials Co., Ltd. by Yichang City DongshanDevelopment Corporation under the provisions of the investment contract signed between the Group and the Municipal Governmentof Yi Chang. The proceeds were designed for the construction of electricity transformer and the pipelines. Yichang polysilicon isentitled to the ownership 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 liabilitiesof Crucible project of Yichang Hejing Photoelectric Ceramic Co., Ltd. The proceeds would be amortised and credited to incomestatement by 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 toincome statement in 15 years, in accordance with the minimum operating period committed by the Group.(x) The allowance was granted by Shenzhen City Development and Reform Commission for the development of Group CoatingFilm experimental project. The grant will be amortised and credited to income statement in the estimated useful life of the relevantfixed assets.(xi) It represented the funds granted by Hubei local government for inport discount complement and international corporationspecial subsidy. The grant will be amortised and credited to income statement by 12 to 15 years.(xii) It represented the special subsidy of Yichang National Regional Strategic Emerging Industry Development Pilot Project II,which is used to complement Yichang CSG PolysSilicon “Hubei semiconductor silicon preparative technique project laboratory”.The grant will be amortised and credited to income statement by 15 years.(xiii) It represented the funds granted by Yichang Municipal Government for Yichang CSG Display Company's flat projectconstruction support funds and construction of coil coating three-line project. The grant will be amortised and credited to incomestatement by 15 years.(xiv) 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 photoelectric optical glassproduction line . After the completion of the production line, the ownership belongs to Xianning photoelectric. The allowance will becredited to income statement in 8 years, the useful life of the production line.(xv) The allowance was granted by Shenzhen Municipal Government. The allowance was used for the production line of epidemicprevention materials for Shenzhen CSG Medical Technology Co., Ltd. The facilities belonged to Shenzhen CSG Medical TechnologyCo., Ltd upon completion. The allowance will be credited to income statement with the useful life of the production line.(xvi) The allowance was granted by Administrative Commission of Yongqing County Ecological Environment Bureau.and HebeiCSG. is used to produce line drop emission transformation, and the grant will be amortised and credited to income statement in theresidual life of the relevant fixed assets.(xvii) 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 who are working at Yichang or planeto introduction, RMB171 million fund was set up, as a special fund for talent introduction and housing resettlement.
(xviii) The allowance was granted by Administrative Commission of Guangdong Provincial Department of Finance is aprovincial industry to jointly establish financial support funds which is used to Z the development of enterprises, production andoperation, and other expenditure for Zhaoqing Energy Saving Company.
34. Share Capital
Unit: RMB
Item | Opening balance | Changed in the report period(+,-) | Closing balance | ||||
New issues | Bonus issue | Transferred from reserves | Others | Sub-total | |||
Total of capital shares | 3,070,692,107 | 3,070,692,107 |
35. Capital surplus
Unit: RMB
Item | Opening balance | Increased this term | Decreased this term | Closing balance |
Capital premium (share premium) | 655,424,260 | 655,424,260 | ||
Other capital surplus | -58,427,175 | -58,427,175 | ||
Total | 596,997,085 | 596,997,085 |
36. Other comprehensive income
Unit: RMB
Item | Opening balance | Occurring in current period | Closing balance | |||
Amount incurred before income tax | 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 | 159,200,530 | 6,167,540 | 6,167,540 | 165,368,070 | ||
Differences on translation of | -4,501,267 | 6,167,540 | 6,167,540 | 1,666,273 |
foreign currency financial statements | ||||||
Finance incentives for energy and technical transformation | 2,550,000 | 2,550,000 | ||||
Income from conversion of self use real estate and land use right into investment real estate | 161,151,797 | 161,151,797 | ||||
Total of other comprehensive income | 159,200,530 | 6,167,540 | 6,167,540 | 165,368,070 |
37. Special reserves
Unit: RMB
Item | Opening balance | Increased this term | Decreased this term | Closing balance |
Safety production cost | 7,296,397 | 4,853,948 | 10,297,642 | 1,852,703 |
Total | 7,296,397 | 4,853,948 | 10,297,642 | 1,852,703 |
38. Surplus reserves
Unit: RMB
Item | Beginning of term | Increased this term | Decreased this term | End of term |
Statutory surplus reserve | 1,017,034,942 | 1,017,034,942 | ||
Discretionary surplus reserve | 127,852,568 | 127,852,568 | ||
Total | 1,144,887,510 | 1,144,887,510 |
39. 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 | 6,450,587,417 | 5,336,266,412 |
Retained earnings at the beginning of this term after adjustment | 6,450,587,417 | 5,336,266,412 |
Add: net profits belonging to equity holders of the Company | 1,001,174,398 | 1,352,517,465 |
Less: Common stock dividends payable | 614,138,421 | 307,069,211 |
Retained earnings in the end | 6,837,623,394 | 6,381,714,666 |
40. Revenue and cost of sales
Unit: RMB
Item | Occurred in current term | Occurred in previous term | ||
Revenue | Cost | Revenue | Cost | |
Revenue from main operations | 6,421,792,209 | 4,599,587,540 | 6,549,257,796 | 4,117,364,759 |
Revenue from other operations | 97,424,467 | 38,058,387 | 65,544,742 | 9,262,386 |
Total | 6,519,216,676 | 4,637,645,927 | 6,614,802,538 | 4,126,627,145 |
41. Tax and surcharge
Unit: RMB
Item | Occurred in current term | Occurred in previous term |
City maintenance and construction tax | 15,694,124 | 20,244,886 |
Educational surcharge | 13,036,606 | 17,918,346 |
Housing property tax | 17,222,873 | 16,177,724 |
Land use rights | 8,675,097 | 11,475,052 |
Stamp tax | 3,840,095 | 3,873,467 |
Environmental protection tax | 2,206,638 | 3,569,685 |
Others | 605,189 | 706,894 |
Total | 61,280,622 | 73,966,054 |
42. Sales expenses
Unit: RMB
Item | Occurred in current term | Occurred in previous term |
Freight expenses | 2,557,634 | 5,430,828 |
Employee benefits | 92,473,703 | 82,609,837 |
Entertainment expenses | 5,362,131 | 10,768,857 |
Business travel expenses | 2,856,337 | 4,144,027 |
Vehicle use fee | 4,488,510 | 3,994,805 |
Rental expenses | 4,437,109 | 3,608,518 |
Depreciation expenses | 396,591 | 386,840 |
Insurance premium | 8,951,501 | 1,943,539 |
Others | 12,383,136 | 12,438,764 |
Total | 133,906,652 | 125,326,015 |
43. Administrative expenses
Unit: RMB
Item | Occurred in current term | Occurred in previous term |
Employee benefits | 194,016,411 | 205,775,425 |
Depreciation expenses | 29,261,329 | 30,558,014 |
Amortization of intangible assets | 31,408,498 | 31,383,145 |
General office expenses | 13,393,317 | 14,283,686 |
Labour union funds | 9,792,599 | 9,143,124 |
Entertainment fees | 8,507,539 | 8,583,533 |
Business travel expenses | 2,194,600 | 3,293,171 |
Utility fees | 2,955,260 | 2,661,302 |
Canteen fee | 4,624,155 | 3,737,420 |
Vehicle use fee | 3,213,151 | 2,818,991 |
Consulting advisers | 3,470,195 | 7,243,698 |
Others | 15,798,758 | 35,433,195 |
Total | 318,635,812 | 354,914,704 |
44. Research and development expenses
Unit: RMB
Item | Occurred in current term | Occurred in previous term |
Research and development expenses | 265,877,930 | 224,886,882 |
Total | 265,877,930 | 224,886,882 |
45. Finance expenses
Unit: RMB
Item | Occurred in current term | Occurred in previous term |
Interest on borrowings | 118,724,723 | 103,386,761 |
Less: Capitalised interest | 26,740,119 | 1,416,342 |
Interest expenses | 91,984,604 | 101,970,419 |
Less: Interest income | 30,756,704 | 20,024,847 |
Exchange losses | -210,284 | 3,871,530 |
Others | 1,779,736 | 1,182,897 |
Total | 62,797,352 | 86,999,999 |
46. Other income
Unit: RMB
Source of other gains | Occurred in current term | Occurred in previous term |
Government subsidy amortization | 71,815,510 | 16,158,100 |
Industry support funds | 1,500,000 | 1,782,700 |
Government incentive funds | 17,203,284 | 11,750,470 |
Research grants | 2,196,600 | 2,129,180 |
Others | 6,587,158 | 4,733,354 |
Total | 99,302,552 | 36,553,804 |
47. Investment income
Unit: RMB
Item | Occurred in current term | Occurred in previous term |
Structural deposit income | 14,478,503 | 3,075,863 |
Fixed deposit income | 1,935,192 | 596,467 |
Total | 16,413,695 | 3,672,330 |
48. Credit impairment losses
Unit: RMB
Item | Occurred in current term | Occurred in previous term |
Losses on bad debts of other receivables | -396,253 | -110,593 |
Losses on bad debts of accounts receivable | -1,095,969 | -2,413,455 |
Total | -1,492,222 | -2,524,048 |
49. Asset impairment losses
Unit: RMB
Item | Occurred in current term | Occurred in previous term |
1.Decline in the value of inventories | 1,456 | |
2.Impairment loss of fixed assets | -26,753,082 | |
Total | 1,456 | -26,753,082 |
50. Asset disposal income
Unit: RMB
Source of income from assets disposal | Occurred in current term | Occurred in previous term |
Gains and losses on disposal of non current assets | 12,745,461 | 137,638 |
Total | 12,745,461 | 137,638 |
51. 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 |
Compensation income | 45,951 | 2,504,317 | 45,951 |
Amounts unable to pay | 3,861,020 | 2,998,725 | 3,861,020 |
Insurance claim | 9,040,000 | 525,484 | 9,040,000 |
Others | 2,186,007 | 1,523,272 | 2,186,007 |
Total | 15,132,978 | 7,551,798 | 15,132,978 |
52. 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 expenditure | 1,731,127 | 265,306 | 1,731,127 |
Compensation | 599,074 | 599,074 | |
Financial aid refund | 74,583 | 15,028,336 | 74,583 |
Others | 1,255,286 | 1,168,343 | 1,255,286 |
Total | 3,660,070 | 16,461,985 | 3,660,070 |
53. Income tax expenses
(1) List of income tax expenses
Unit: RMB
Item | Occurred in current term | Occurred in previous term |
Current income tax expenses | 103,724,527 | 260,737,212 |
Deferred income tax expenses | 65,200,997 | -5,456,922 |
Total | 168,925,524 | 255,280,290 |
(2) Adjustment process of accounting profit and income tax expense
Unit: RMB
Item | Occurred in current term |
Total profit | 1,177,516,231 |
Current income tax expense accounted by tax and relevant regulations | 181,726,624 |
Adjusting the effect of prior period income tax | -3,872,718 |
Impact of non-deductible costs, expenses and losses | 851,340 |
Impact on the use of deductible loss of deferred income tax assets not recognized in previous period | -5,210,915 |
Influence deductible losses of unrecognized deferred income tax assets | 129,547 |
Impact of tax incentives | -4,698,354 |
Income tax expenses | 168,925,524 |
54. Other comprehensive income
See the note for details.
55. Items of the cash flow statement
(1) Cash received relating to other operating activities
Unit: RMB
Item | Occurred in current term | Occurred in previous term |
Interest income | 30,756,704 | 20,024,847 |
Government grant | 30,487,042 | 113,114,204 |
Others | 25,992,822 | 45,686,124 |
Total | 87,236,568 | 178,825,175 |
(2)Cash paid relating to other operating activities
Unit: RMB
Item | Occurred in current term | Occurred in previous term |
Freight expenses | 3,928,266 | 7,337,545 |
General office expenses | 19,162,389 | 21,928,236 |
Business travel expenses | 7,379,731 | 9,925,103 |
Entertainment fees | 16,277,475 | 20,105,592 |
Vehicle use fee | 8,129,592 | 6,874,692 |
Maintenance fee | 13,668,199 | 10,878,076 |
Rental expenses | 10,391,291 | 11,665,203 |
Insurance | 22,824,587 | 7,889,601 |
Commission | 1,610,434 | 1,182,897 |
Consulting fees | 6,193,327 | 5,050,890 |
Others | 94,303,923 | 143,938,799 |
Total | 203,869,214 | 246,776,634 |
(3)Other cash received related to investment activities
Unit: RMB
Item | Occurred in current term | Occurred in previous term |
Deposit | 26,124,986 | |
Income from trial production of construction in progress | 6,011,365 | |
Total | 32,136,351 |
(4)Other cash paid related to investment activities
Unit: RMB
Item | Occurred in current term | Occurred in previous term |
Trial production expenditure in construction | 6,911,853 | |
Investment Deposit and Margin | 19,138,102 | |
Total | 19,138,102 | 6,911,853 |
(5)Other cash received related to financing activities
Unit: RMB
Item | Occurred in current term | Occurred in previous term |
Collection of A/B share tax | 206,753 | |
Total | 206,753 |
(6)Other cash paid related to financing activities
Unit: RMB
Item | Occurred in current term | Occurred in previous term |
Repay financing leases | 23,022,757 | |
Withholding tax on A/B shares, etc. | 1,142,255 | 390,507 |
Total | 24,165,012 | 390,507 |
56. Supplement information to the cash flow statement
(1) Supplement information to the cash flow statement
Unit: RMB
SupplementaryInfo. | Amount of this term | Amount of last term |
1. Reconciliation from net profit to cash flows from operating activities | ||
Net profit | 1,008,590,707 | 1,368,977,904 |
Add: Provisions for assets impairment | -1,456 | 26,753,082 |
Credit impairment loss | 1,492,222 | 2,524,048 |
Depreciation of fixed assets, depletion of oil and gas assets, depreciation of productive biological assets | 435,495,584 | 448,555,136 |
Depreciation of right-of-use assets | 877,303 | 471,792 |
Amortization of intangible assets | 31,408,498 | 31,383,145 |
Amortization of long-term prepaid expenses | 289,845 | 163,410 |
Losses on disposal of fixed assets intangible assets and other long-term assets (“- “for gains) | -12,745,461 | -137,638 |
Finance expenses (“- “for gains) | 91,984,604 | 101,970,419 |
Investment loss (“- “for gains) | -16,413,695 | -3,672,330 |
Decrease in deferred income tax assets (“- “for increase) | 58,524,476 | -8,575,782 |
Increase of deferred income tax liability (“- “for decrease) | 6,676,521 | 3,118,860 |
Decrease of inventory (“- “for increase) | -668,865,872 | -236,251,630 |
Decrease of operational receivable items (“- “for increase) | -544,965,419 | -260,405,962 |
Increase of operational payable items (“- “for decrease) | 505,601,316 | 224,537,331 |
Others | 4,853,948 | -1,166,410 |
Net cash flow generated by business operation | 902,803,121 | 1,698,245,375 |
2. Net change of cash and cash equivalents | ||
Balance of cash at the end of the period | 2,863,965,769 | 1,647,672,831 |
Less: Initial balance of cash | 2,756,477,572 | 2,124,028,196 |
Net increasing of cash and cash equivalents | 107,488,197 | -476,355,365 |
(2) Formation of cash and cash equivalents
Unit: RMB
Item | Closing balance | Opening balance |
I. Cash | 2,863,965,769 | 2,756,477,572 |
Incl: Cash on hand | 130 | |
Bank deposits that can be readily drawn on demand | 2,523,965,640 | 2,453,477,573 |
Other cash balances that can be readily drawn on demand | 339,999,999 | 302,999,999 |
II. Balance of cash and cash equivalents at the end of the period | 2,863,965,769 | 2,756,477,572 |
57. Assets with restricted ownership or use rights
Unit: RMB
Item | Ending book value | Reason for restriction |
Monetary assets | 6,076,772 | Circulation of margin, etc. is restricted |
Fixed assets | 148,986,093 | Financial leasing is restricted |
Total | 155,062,865 |
58. 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 | 56,375,983 | ||
Incl: USD | 6,088,330 | 6.7114 | 40,861,221 |
EUR | 890,687 | 7.0084 | 6,242,290 |
HKD | 10,827,830 | 0.8552 | 9,259,960 |
AUD | 797 | 4.6145 | 3,680 |
JPY | 16,395 | 0.0491 | 805 |
SGD | 1,666 | 4.8170 | 8,027 |
Accounts receivable | 72,743,784 | ||
Incl: USD | 9,720,348 | 6.7114 | 65,237,143 |
EUR | 834,785 | 7.0084 | 5,850,510 |
HKD | 1,936,542 | 0.8552 | 1,656,131 |
Accounts payable | 38,601,456 | ||
Incl: USD | 5,422,812 | 6.7114 | 36,394,660 |
EUR | 188,656 | 7.0084 | 1,322,176 |
HKD | 736,623 | 0.8552 | 629,960 |
JPY | 3,363,707 | 0.0491 | 165,158 |
Item | Closing balance of foreign currency | Exchange rate | Closing balance convert to RMB |
GBP | 11,000 | 8.1365 | 89,502 |
59. Government subsidy
(1) Basic situation of government subsidies
Unit: RMB
Type | Amount | Presentation item | Amount included in current profit and loss |
Government subsidy amortization | 71,815,510 | Other income | 71,815,510 |
Other government subsidies | 27,487,042 | Other income | 27,487,042 |
(2) Return of government subsidies
√Applicable □ Not applicable
Unit: RMB
Item | Amount | Reason |
Shenzhen float high-strength ultra-thin glass industrialization research project | 74,583 |
VIII. The changes of consolidation scope
1. Changes in scope of consolidation for other reasons
On February 14, 2022, the Group set up a subsidiary, Yichang CSG New Energy Material Technology Co.,Ltd.(hereinafter referred to as " Yichang New Energy Materials Co., Ltd "). As of June 30, 2022, the Group had made amonetary contribution of RMB 1 million.IX. Equity in other entities
1. Equity in subsidiary
(1) Composition of the Group
Name of subsidiary | Major business location | Place of registration | Scope of business | Shareholding (%) | Way of acquisition | |
Direct | Indirect | |||||
Chengdu CSG | Chengdu, PRC | Chengdu, PRC | Development, production and sales of | 75% | 25% | Establishment |
special glass | ||||||
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) | Hong Kong, PRC | Hong Kong, PRC | Investment holding | 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 Display | Shenzhen, PRC | Shenzhen, PRC | Production and sales of display component products | 60.8% | Acquisition | |
Zhaoqing Energy-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 | |
Anhui CSG New Energy Materials | Fengyang, PRC | Fengyang, PRC | Develop, manufacture and sell key materials or complete sets of equipment for new energy power generation | 100% | Establishment |
Anhui CSG New Quartz material | Fengyang, PRC | Fengyang, PRC | Quartzite mining, processing, purification, sales | 100% | Establishment | |
Anhui Mining | Fengyang, PRC | Fengyang, PRC | Mining of mineral resources | 60% | Establishment | |
Xi'an Energy-saving | Xi'an, PRC | Xi'an, PRC | Production and sales of special glass | 55% | 45% | Establishment |
Guangxi new energy materials Co., Ltd | Longgang, ,PRC | Longgang, ,PRC | Production and sales of special glass | 75% | 25% | 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 2022 | Dividends distributed to minority interests for the year ended 30 June 2022 | Minority interest as at 30 June 2022 |
Shenzhen CSG Display | 39.2% | 6,859,691 | 411,269,177 |
(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 | 303,462,273 | 1,348,133,307 | 1,651,595,580 | 464,018,122 | 82,380,830 | 546,398,952 |
Opening balance | ||||||
Current assets | Non-current assets | Total assets | Current liabilities | Non-current liabilities | Total liabilities | |
210,979,056 | 1,378,748,179 | 1,589,727,235 | 448,244,735 | 54,572,497 | 502,817,232 |
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 | 276,320,544 | 21,191,648 | 21,191,648 | 20,948,584 | 378,092,939 | 46,313,955 | 46,313,955 | 57,269,209 |
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 and liquidity risk. The Group's overall risk management programme focuses on the unpredictability offinancial markets and seeks to minimise 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 aredenominated in RMB. However, some of the export business is settled in foreign currency. Besides, the Group is exposedto foreign exchange risk arising from the recognized assets and liabilities, and future transactions denominated in foreigncurrencies, primarily with respect to US dollars and HKD. The Group monitors the scale of foreign currency transactions,foreign currency assets and liabilities, and adjusts settlement currency of export business, to furthest reduce the currencyrisk.
As at 30 June 2022, the carrying amounts in RMB equivalent of the Group’s assets and liabilities denominated in foreigncurrencies are summarized below:
30 June 2022 | ||||
USD | HKD | Others | Total | |
Financial assets denominated in foreign currency | ||||
Cash at bank and on hand | 40,861,221 | 9,259,960 | 6,254,802 | 56,375,983 |
Receivables | 65,237,143 | 1,656,131 | 5,850,510 | 72,743,784 |
Total | 106,098,364 | 10,916,091 | 12,105,312 | 129,119,767 |
Financial liabilities denominated in foreign currency | ||||
Payables | 36,394,660 | 629,960 | 1,576,836 | 38,601,456 |
Total | 36,394,660 | 629,960 | 1,576,836 | 38,601,456 |
31 December 2021 | ||||
USD | HKD | Others | Total | |
Financial assets denominated in foreign currency | ||||
Cash at bank and on hand | 26,509,188 | 2,379,817 | 115,374 | 29,004,379 |
Receivables | 111,133,429 | 1,732,573 | 6,026,900 | 118,892,902 |
Total | 137,642,617 | 4,112,390 | 6,142,274 | 147,897,281 |
Financial liabilities denominated in foreign currency | ||||
Payables | 40,306,973 | 201,921 | 2,416,770 | 42,925,664 |
Total | 40,306,973 | 201,921 | 2,416,770 | 42,925,664 |
As at 30 June 2022, if the currency had strengthened/weakened by 10% against the USD while all other variables hadbeen held constant, the Group’s net profit for the year would have been approximately RMB5,924,815 lower/higher (31December 2021: approximately RMB 8,273,530 lower/higher) for various financial assets and liabilities denominated inUSD.
Other changes in exchange rate had no significant influence on the Group's operating activities.
(b) Interest rate risk
The Group's interest rate risk arises from long-term interest bearing borrowings including long-term borrowings andbonds payable. Financial liabilities issued at floating rates expose the Group to cash flow interest rate risk. Financialliabilities issued at fixed rates expose the Group to fair value interest rate risk. The Group determines the relativeproportions of its fixed rate and floating rate contracts depending on the prevailing market conditions. As at 30 June 2022,the Group’s long-term interest-bearing debt at variable rates and fixed rates as illustrated below:
Type | 30 June 2022 | 31 December 2021 |
Debt at fixed rates | 789,569,526 | 2,404,372,257 |
Debt at variable rates | 2,371,566,942 | 1,061,274,897 |
Total | 3,161,136,468 | 3,465,647,154 |
The Group continuously monitors the interest rate position of the Group. Increases in interest rates will increase the costof new borrowing and the interest expenses with respect to the Group’s outstanding floating rate borrowings, andtherefore could have a material adverse effect on the Group’s financial position. The Group makes adjustments timelywith reference to the latest market conditions, which includes increasing/decreasing long-term fixed rate debts at theanticipation 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, accountsreceivable, other receivables.
The Group expects that there is no significant credit risk associated with cash at bank since they are mainly deposited atstate-owned banks and other medium or large size listed banks. Management does not expect that there will be anysignificant losses from non-performance by these counterparties. Furthermore, as the Group’s bank acceptance notesreceivable are generally accepted by the state-owned banks and other large and medium listed banks, managementbelieves the credit risk should be limited.
In addition, the Group has policies to limit the credit exposure on accounts receivable, other receivables and tradeacceptance notes receivable. The Group assesses the credit quality of and sets credit limits on its customers by taking intoaccount their financial position, the availability of guarantee from third parties, their credit history and other factors suchas current market conditions. The credit history of the customers is regularly monitored by the Group. In respect ofcustomers with a poor credit history, the Group will use written payment reminders, or shorten or cancel credit periods, toensure the overall credit risk of the Group is limited to a controllable extent.
(3) Liquidity risk
Cash flow forecasting is performed by each subsidiary of the Group and aggregated by the Group’s finance department inits headquarters. The Group’s finance department at its headquarters monitors rolling forecasts of the Group's short-termand long-term liquidity requirements to ensure it has sufficient cash reserve, while maintaining sufficient headroom on itsundrawn committed borrowing facilities from major financial institutions so that the Group does not breach borrowinglimits or covenants on any of its borrowing facilities to meet the short-term and long-term liquidity requirements.The management intends to take the following measures to ensure that the group's liquidity risk is within a controllablerange.
(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 theirundiscounted contractual cash as follows:
30 June 2022 | |||||
Within 1 year | 1 to 2 years | 2 to 5 years | Over 5 years | Total | |
Short-term borrowings | 481,724,918 | 481,724,918 | |||
Notes payable | 549,939,628 | 549,939,628 | |||
Accounts payable | 1,796,932,531 | 1,796,932,531 | |||
Other payables | 221,866,936 | 221,866,936 | |||
Other current liabilities | 47,730,142 | 47,730,142 | |||
Non-current liabilities due within one year | 2,468,442,587 | 2,468,442,587 | |||
Long-term payables | 149,062,955 | 149,062,955 | |||
Long-term borrowings | 125,145,270 | 1,413,083,190 | 1,544,631,303 | 471,015,574 | 3,553,875,337 |
Total | 5,691,782,012 | 1,562,146,145 | 1,544,631,303 | 471,015,574 | 9,269,575,034 |
31 December 2021 | |||||
Within 1 year | 1 to 2 years | 2 to 5 years | Over 5 years | Total | |
Short-term borrowings | 182,299,506 | 182,299,506 | |||
Notes payable | 400,662,713 | 400,662,713 | |||
Accounts payable | 1,428,851,312 | 1,428,851,312 | |||
Other payables | 289,440,477 | 289,440,477 | |||
Other current liabilities | 40,099,309 | 40,099,309 |
Non-current liabilities due within one year | 514,569,537 | 514,569,537 | |||
Long-term payables | 168,258,062 | 168,258,062 | |||
Long-term borrowings | 60,580,998 | 374,241,583 | 889,057,539 | 363,125,181 | 1,687,005,301 |
Bonds payable | 120,000,000 | 2,120,000,000 | 2,240,000,000 | ||
Total | 3,036,503,852 | 2,662,499,645 | 889,057,539 | 363,125,181 | 6,951,186,217 |
XI. Disclosure of fair value
1. The ending fair value of assets and liabilities measured at fair value
Unit: RMB
Fair value at the end of the period | ||||
Level 1 | Level 2 | Level 3 | Total | |
Financial assets measured at fair value with changes included in current profit and loss | ||||
Structured deposits | 1,209,000,000 | 1,209,000,000 | ||
Financial assets measured at fair value through other comprehensive income | ||||
Receivables Financing | 582,328,808 | 582,328,808 | ||
Investment property | 383,084,500 | 383,084,500 | ||
Total | 2,174,413,308 | 2,174,413,308 |
XII. Related party and related Transaction
1. Information of the parent company
The Company regards no entity as the parent company.
2. Information of the subsidiaries
The general information and other related information of the subsidiaries are set out in attached note.
3. Joint venture of the Company
The general information and other related information of joint ventures of the Company are set out in attached note.
4. Other related parties
Other related parties | Relationship between other related parties and the enterprise |
Foresea Life Insurance Co., Ltd. | The Company's largest shareholder |
Shenzhen Jushenghua Co., Ltd. | A related party of the Company's largest shareholder |
Xinjiang Qianhai United Property Insurance Co., Ltd. | A related party of the Company's largest shareholder |
Suzhou Baoqi Logistics Co., Ltd. | A related party of the Company's largest shareholder |
Shenzhen Baoneng Automobile Sales Service Co., Ltd | A related party of the Company's largest shareholder |
5. Related party transactions
(1)Related transactions for the purchase and sale of goods, provision and receipt of servicesPurchase of goods / acceptance of labor services
Unit: RMB
Related party | Related party transactions | Amount incurred in the current period | Whether the transaction limit is exceeded | Amount incurred in the previous period |
Suzhou Baoqi Logistics Co., Ltd. | Acceptance of labor services | None | 5,247,713 |
Foresea Life Insurance Co., Ltd.
Foresea Life Insurance Co., Ltd. | Purchase Purchase of life insurance | 3,323,544 | None | 1,224,197 |
Shenzhen Baoneng Automobile Sales Service Co., Ltd | Purchase of goods | None | 1,818,050 | |
Xinjiang Qianhai United Property Insurance Co., Ltd. | Purchase auto insurance | None | 84,149 |
Other related parties
Other related parties | Purchase of goods | 245,339 | None | 609,968 |
Total | 3,568,883 | None | 8,984,077 |
Sales of goods / provision of labor services
Unit: RMB
Related party | Related party transactions | Amount incurred in the current period | Amount incurred in the previous period |
Shenzhen Jushenghua Co., Ltd. | Sales of goods | 500 | |
Other related parties | Sales of goods | 208,935 | 559,600 |
Total | 208,935 | 560,100 |
(2)Related lease
The company as the lessee:
Unit: RMB
Name of lessor | Types of leased | Rental costs for simplified short-term leases and low value asset | Variable lease payments not included in the measurement of | Rent paid | Interest expense of lease liabilities undertaken | Increased use right assets |
assets | leases(if applicable) | lease liabilities (if applicable) | |||||||||
Amount incurred in the current period | Amount incurred in the previous period | Amount incurred in the current period | Amount incurred in the previous period | Amount incurred in the current period | Amount incurred in the previous period | Amount incurred in the current period | Amount incurred in the previous period | Amount incurred in the current period | Amount incurred in the previous period | ||
Other related parties | Leased plant | 442,325 | 19,559 |
6. Accounts receivable and payable of related parties
(1) Receivables
Unit: RMB
Related party | Closing balance | Opening balance | ||
Book balance | Bad debt provision | Book balance | Bad debt provision | |
Foresea Life Insurance Co., Ltd. | 457,134 | 1,715 | ||
Other related parties | 283,146 | 4,064 | 240,905 | 4,819 |
Total | 740,280 | 4,064 | 242,620 | 4,819 |
(2) Payables
Related party | Closing book balance | Opening book balance |
Suzhou Baoqi Logistics Co., Ltd. | 518,280 | 2,731,013 |
Other related parties | 134,025 | 133,408 |
Total | 652,305 | 2,864,421 |
XIII. Share based payment
1.General situation of share based payment
□ Applicable √ Not applicable
2.Share based payment settled by equity
□ Applicable √ Not applicable
3.Cash settled share based payment
□ 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 onthe balance sheet are as follows:
Unit: RMB
Item | 30 June 2022 | 31 December 2021 |
Buildings, machinery and equipment | 3,255,792,770 | 2,994,615,272 |
XV. Other important matters
1. Segment information
(1) Definition foundation of segment and accounting policy
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 - savingmaterials, the silica for the production thereof, etc.Electronic glass and display segment is responsible for production and sales of display components and specialultra-thin glass products, etc.Solar energy segment, engaged in manufacturing and sales of polysilicon and solar battery and applications, etc.
The reportable segments of the Group are the business units that provide different products or service. Differentbusinesses require different technologies and marketing strategies. The Group, therefore, separately manages theproduction and operation of each reportable segment and Estimates their operating results respectively, in order to makedecisions about resources to be allocated to these 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 areallocated based on the operations of the segment. Expenses indirectly attributable to each segment are allocated to thesegments based on the proportion 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 | 4,374,933,542 | 722,676,247 | 1,405,993,071 | 15,613,816 | 6,519,216,676 | |
Inter-segment revenue | 53,836,884 | 87,239,522 | 27,648,076 | 214,893,714 | -383,618,196 | |
Interest income | 1,783,726 | 281,292 | 308,648 | 28,383,038 | 30,756,704 | |
Interest expenses | 4,057,266 | 3,838,337 | -135,478 | 84,224,479 | 91,984,604 | |
Asset impairment losses | -1,456 | -1,456 | ||||
Credit impairment loss | 848,260 | -320,455 | 879,333 | 85,084 | 1,492,222 | |
Depreciation and amortization expenses | 284,583,466 | 114,919,758 | 64,926,060 | 3,641,946 | 468,071,230 | |
Total profit | 698,174,831 | 130,737,688 | 333,914,370 | 14,689,342 | 1,177,516,231 | |
Income tax expenses | 99,050,153 | 18,781,190 | 52,257,720 | -1,163,539 | 168,925,524 | |
Net profit | 599,124,678 | 111,956,498 | 281,656,650 | 15,852,881 | 1,008,590,707 | |
Total assets | 11,258,772,055 | 3,727,213,216 | 3,285,363,409 | 4,199,829,096 | 22,471,177,776 | |
Total liabilities | 4,895,321,766 | 641,350,698 | 584,360,531 | 4,088,494,414 | 10,209,527,409 | |
Increase in non current assets | 1,426,159,873 | 69,360,125 | 132,889,883 | 3,450,028 | 1,631,859,909 |
(3) Other statement
The Group’s revenue from external customers domestically and in foreign countries or geographical areas, and the totalnon-current assets other than financial assets and deferred tax assets located domestically and in foreign countries orgeographical areas are as follows:
Revenue from external customers | Jan.-Jun. 2022 | Jan.-Jun. 2021 |
Mainland
Mainland | 6,019,026,588 | 5,993,997,205 |
Overseas | 500,190,088 | 620,805,333 |
Total
Total | 6,519,216,676 | 6,614,802,538 |
Total non-current assets
Total non-current assets | 30 June 2022 | 31 December 2021 |
Mainland | 14,103,009,578 | 12,982,067,078 |
Hong Kong | 12,376,080 | 12,403,499 |
Total | 14,115,385,658 | 12,994,470,577 |
XVI. Notes to Financial Statements of the Parent Company
1.Accounts receivable
(1) Classified disclosure of accounts receivable
Unit: RMB
Category | Ending book balance | Beginning book balance | ||||||||
Book balance | Bad debt provision | book value | Book balance | Bad debt provision | book value | |||||
amount of money | proportion | amount of money | Accrual proportion | amount of money | proportion | amount of money | Accrual proportion | |||
Accounts receivable for which bad debt reserves are withdrawn by portfolio | 2,037,007 | 100% | 40,740 | 2% | 1,996,267 | |||||
Total | 2,037,007 | 100% | 40,740 | 2% | 1,996,267 |
Provision for bad debts by portfolio:
Unit: RMB
Name | Ending book balance | ||
Book balance | Bad debt provision | Accrual proportion | |
Portfolio 1 | 2,037,007 | 40,740 | 2% |
Total | 2,037,007 | 40,740 |
Disclosed by aging
Unit: RMB
Aging | Ending book balance |
Within 1 year (including 1 year) | 2,037,007 |
Total | 2,037,007 |
(2)Bad debt reserves withdrawn, recovered or reversed in the current period
Provision for bad debts in the current period:
Unit: RMB
Category | Beginning book balance | Amount of change in the current period | Ending balance | |||
Provision | Collect or reversal | Write off | Others | |||
Bad debt reserves of accounts receivable | 40,740 | 40,740 | ||||
Total | 40,740 | 40,740 |
(3)Top 5 of the closing balance of the accounts receivable collated according to the arrears party
Unit: RMB
Unit name | Ending balance of accounts receivable | Proportion in total closing balance of accounts receivable | Ending balance of bad debt provision |
Total accounts receivable of the top 5 in balance | 2,037,007 | 100% | 40,740 |
Total | 2,037,007 | 100% |
2. Other receivables
Unit: RMB
Item | Ending balance | Book balance |
Dividends receivable | 250,000,000 | 250,000,000 |
Other receivables | 2,374,297,723 | 2,649,091,405 |
Total | 2,624,297,723 | 2,899,091,405 |
(1) Dividends receivable
1)Classification of dividends receivable
Unit: RMB
Item (or investee) | Closing balance | Opening balance |
Dividends receivable from subsidiaries | 250,000,000 | 250,000,000 |
Total | 250,000,000 | 250,000,000 |
(2)Other receivables
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 | 2,250,430,875 | 2,526,427,812 |
Others | 175,252,620 | 174,005,021 |
Total | 2,425,683,495 | 2,700,432,833 |
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 impairment occurred) | Expected credit loss for the entire duration (credit impairment occurred) | ||
Balance on1 January 2022 | 41,428 | 51,300,000 | 51,341,428 | |
Balance on1 January 2022 in current period | ||||
Provision for this period | 44,344 | 44,344 | ||
Balance on 30 June 2022 | 85,772 | 51,300,000 | 51,385,772 |
3)Other receivables disclosed by aging
Unit: RMB
Aging | Ending balance |
Within 1 year (including 1 year) | 2,253,443,341 |
1 to 2 years | 1,036,498 |
2 to 3 years | 98,190 |
More than 3 years | 171,105,466 |
3 to 4 years | 75,371 |
More than 5 years | 171,030,095 |
Total | 2,425,683,495 |
4) Provision for bad debts accrued, recovered or reversed in the current 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 by portfolio | 51,341,428 | 44,344 | 51,385,772 | |||
Total | 51,341,428 | 44,344 | 51,385,772 |
5)Top 5 of the closing balance of the other accounts receivable collated according to the arrears party
Unit: RMB
Name ofthecompany | Nature of accounts | Closing balance | Aging | Proportion of the total year end balance of the accounts receivable (%) | Closing balance of bad debt provision |
Dongguan CSG PV-tech | Subsidiary | 569,768,167 | Within 1 year | 23% | |
Qingyuan CSG Energy-saving | Subsidiary | 342,364,169 | Within 1 year | 14% | |
Shenzhen CSG Display | Subsidiary | 334,548,092 | Within 1 year | 14% | |
Xianning CSG Photoelectric | Subsidiary | 251,068,779 | Within 1 year | 10% | |
China Southern Glass (Hong Kong) | Subsidiary | 240,438,085 | Within 1 year | 10% | |
Total | 1,738,187,292 | 71% |
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 | 6,914,675,709 | 15,000,000 | 6,899,675,709 | 6,277,391,694 | 15,000,000 | 6,262,391,694 |
Total | 6,914,675,709 | 15,000,000 | 6,899,675,709 | 6,277,391,694 | 15,000,000 | 6,262,391,694 |
(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 | 269,104,000 | 909,960,170 | ||||
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 | |||||
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. | 885,273,105 | 885,273,105 | |||||
Shenzhen CSG Financial Leasing Co., Ltd. | 133,500,000 | 133,500,000 | |||||
Shenzhen Nanbo Display Technology Co., Ltd. | 550,765,474 | 550,765,474 | |||||
Zhaoqing CSG Energy-Saving Glass Co., Ltd. | 150,000,000 | 150,000,000 | |||||
Zhaoqing CSG Automobile Glass Co., Ltd. | 58,121,000 | 12,030,015 | 70,151,015 | ||||
Dongguan CSG PV-tech Co., Ltd. | 382,112,183 | 382,112,183 | |||||
Anhui CSG New Energy Materials | 455,000,000 | 255,000,000 | 710,000,000 | ||||
Anhui CSG New Quartz material | 37,000,000 | 38,000,000 | 75,000,000 | ||||
Shenzhen CSG Medical | 20,000,000 | 20,000,000 | |||||
Anhui CSG Silicon Valley Mingdu Co., Ltd. | 3,000,000 | 3,000,000 | |||||
Xi'an CSG Energy Saving Co., Ltd. | 1,000,000 | 21,150,000 | 22,150,000 | ||||
Guangxi CSG New Energy Materials | 1,000,000 | 17,000,000 | 18,000,000 |
Co., Ltd | |||||||
CSG (Suzhou) Enterprise Headquarters Management Co., Ltd | 9,000,000 | 21,000,000 | 30,000,000 | ||||
Yichang CSG New Energy Materials Co., Ltd | 1,000,000 | 1,000,000 | |||||
Hefei CSG Energy Saving Co., Ltd | 3,000,000 | 3,000,000 | |||||
Others | 238,892,197 | 238,892,197 | 15,000,000 | ||||
Total | 6,262,391,694 | 637,284,015 | 6,899,675,709 | 15,000,000 |
4. Operating income and operating costs
Unit: RMB
Item | Occurred in this term | Occurred in previous term | ||
Income | Costs | Income | Costs | |
Main business | 15,479,200 | 15,015,892 | ||
Other business | 214,719,212 | 42,342,857 | ||
Total | 230,198,412 | 15,015,892 | 42,342,857 |
5.Investment income
Unit: RMB
Item | Occurred in this term | Occurred in previous term |
Long-term equity investment accounted by cost method | 648,961,128 | 715,020,699 |
Investment income of trading financial assets during the holding period | 14,478,503 | 2,858,476 |
Fixed deposit income | 1,935,192 | 596,467 |
Total | 665,374,823 | 718,475,642 |
XVII.Supplementary Information
1. Items and amounts of extraordinary profit (gains)/loss
√Applicable □Not applicable
Unit: RMB
Item | Amount | Note |
Gains/losses from the disposal of non-current asset (including the write-off that accrued for impairment of assets) | 12,745,461 | |
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) | 97,547,070 |
In addition to the effective hedging business related to the normal operation of the company, gains and losses from changes in fair value arising from the holding of tradable financial assets and tradable financial liabilities, and the acquisition of tradable financial assets and available-for-sale financial assets from disposal of tradable financial assets investment income | 16,413,695 | |
Reversal of impairment provision for receivables subject to independent impairment test | 1,409,310 | |
Other non-operating income and expenditure except for the aforementioned items | 11,472,908 | |
Less: Impact on income tax | 23,294,919 | |
Impact on minority shareholders’ equity (post-tax) | 2,713,947 | |
Total | 113,579,578 | -- |
Details of other profit and loss items that meet the definition of non recurring profit and loss:
□Applicable √Not applicable
The Company has no specific circumstances of other profit and loss items that meet the definition of non-recurringprofit and loss.Explanation on defining the non-recurring profit and loss items listed in the "Explanatory Announcement No. 1 onInformation Disclosure of Companies Offering Securities to the Public - Non-recurring Profit and Loss" as recurringprofit and loss items
□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 | 8.61% | 0.33 | 0.33 |
Net profit attributable to ordinary shareholders of the Company after deducting non-recurring gains and losses | 7.64% | 0.29 | 0.29 |
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 international andChinese accounting standards
□ Applicable √ Not applicable
(2) Difference of the net profit and net assets disclosed in financial report prepared under overseas and Chineseaccounting standards
□ Applicable √ Not applicable
(3)Explanation of the reasons for the difference of accounting data under the domestic and foreign accountingstandards. If the data audited by the overseas audit institution is adjusted for the difference, the name of theoverseas institution shall be indicated
□ Applicable √ Not applicable