CSG HOLDING CO., LTD.
SEMI-ANNUAL REPORT 2021
Chairman of the Board:
CHEN LIN
August 2021
Section I. Important Notice, Content and Paraphrase
Board of Directors and the Supervisory Committee of CSG Holding Co., Ltd. (hereinafter referredto as the Company) and its directors, supervisors and senior executives hereby confirm that thereare no any fictitious statements, misleading statements, or important omissions carried in this report,and shall take all responsibilities, individual and/or joint, for the facticity, accuracy andcompleteness of the whole contents.Ms. Chen Lin, Chairman of the Board, Mr. Wang Jian, responsible person in charge of accountingand Ms.WangWenxin, principal of the financial department (accounting officer) confirm that theFinancial Report enclosed in the semi-annual report of the Company is true, accurate and complete.All directors were present at the meeting of the Board for deliberating the semi-annual report of theCompany in person.The future plans, development strategies and other forward-looking statements mentioned in thisreport do not constitute a material commitment of the Company to investors. Investors and relevantparties should pay attention to investment risks, and understand the differences between plans,forecasts and commitments.The Company has described the risk factors and countermeasures of the Company's futuredevelopment in detail in this report. Please refer to Section III. Management Discussion andAnalysisThe Company shall comply with the disclosure requirements of "Shenzhen Stock ExchangeIndustry Information Disclosure Guidelines No. 13 - Listed Companies Engaged in Non-MetalBuilding Materials Related Business".The Company has no plans of cash dividend distribution, bonus shares being sent or convertingcapital reserve into share capital.This report is prepared both in Chinese and English. Should there be any inconsistency between theChinese and English versions, the Chinese version shall prevail.
Content
Section I. Important Notice, Content and Paraphrase .......................................................................... 1
Section II. Company Profile & Financial Highlights ........................................................................... 5
Section III. Business Discussion and Analysis .................................................................................... 8
Section IV. Corporate Governance ..................................................................................................... 28
Section V. Environmental and social responsibility ........................................................................... 29
Section VI. Important Events ............................................................................................................. 35
Section VII. Changes in Shares and Particulars about Shareholders ................................................. 46
Section VIII. Preferred shares ............................................................................................................ 51
Section IX. Bonds .............................................................................................................................. 52
Section X. Financial Report ............................................................................................................... 55
Documents available for Reference
I. Text of the Semi-annual Report carrying the legal representative’s signature;II. Text of the financial report carrying the signatures and seals of the legal representative,responsible person in charge of accounting and person in charge of financial institution;III. All texts of the Company’s documents and original public notices disclosed in the papersappointed by CSRC in the report period.
Paraphrase
| Item | Refers to | Content |
| Company, the Company, CSG or the Group | Refers to | CSG Holding Co., Ltd. |
| Foresea Life | Refers to | Foresea Life Insurance Co., Ltd. |
| Ultra-thin electronic glass | Refers to | The electronic glass with thickness between 0.1~1.1mm |
| Second-generation energy-saving glass | Refers to | Double silver coated glass |
| Third-generation energy-saving glass | Refers to | Triple silver coated glass |
| AG glass | Refers to | Anti-glare glass |
| AF glass | Refers to | Anti-fingerprint glass |
Section II. Company Profile & Financial HighlightsI. Company Profile
| Short form of the stock | Southern Glass A、Southern Glass B | Stock code | 000012、200012 |
| Listing stock exchange | Shenzhen Stock Exchange | ||
| Legal Chinese name of the Company | 中国南玻集团股份有限公司 | ||
| Abbr. of legal Chinese name of the Company | 南玻集团 | ||
| Legal English name of the Company | CSG Holding Co., Ltd. | ||
| Abbr. of legal English name of the Company | CSG | ||
| Legal Representative | Chen Lin | ||
II. Person/Way to contact
| Secretary of the Board | Representative of securities affairs | |
| Name | Yang Xinyu | Chen Chunyan |
| Contact address | CSG Building, No.1 of the 6th Industrial Road, Shekou, Shenzhen, P. R.C. | CSG Building, No.1 of the 6th Industrial Road, Shekou, Shenzhen, P. R.C. |
| Tel. | (86)755-26860666 | (86)755-26860666 |
| Fax. | (86)755-26860685 | (86)755-26860685 |
| securities@csgholding.com | securities@csgholding.com |
III. Other information
1. Way of contact
Whether registered address, office address and their postal codes, website address and email address of the Company changed in thereport period or not
□ Applicable √Not applicable
The registered address, office address and their postal codes, website address and email address of the Company did not change inthe report period. More details can be found in Annual Report 2020.
2. Information disclosure and preparation place
Whether information disclosure and preparation place changed in the report period or not
□Applicable √ Not applicable
The newspapers designated by the Company for information disclosure, the website designated by CSRC for disclosing semi-annualreport and preparation place of semi-annual report did not change in the report period. More details can be found in Annual Report
2020.
3. Other relevant information
Whether other relevant information changed in the report period or not
□Applicable √ Not applicable
IV. Main accounting data and financial indexes
Whether it has retroactive adjustment or re-statement on previous accounting data for accounting policy changed and accountingerror correction or not
□Yes √ No
| The report period (Jan. to Jun.2021) | The same period of last year | Increase/decrease year-on-year | |
| Operating income (RMB) | 6,614,802,538 | 4,424,221,349 | 49.51% |
| Net profit attributable to shareholders of the listed company (RMB) | 1,352,517,465 | 391,466,723 | 245.50% |
| Net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses (RMB) | 1,329,814,528 | 358,644,297 | 270.79% |
| Net cash flow arising from operating activities (RMB) | 1,698,245,375 | 779,644,389 | 117.82% |
| Basic earnings per share (RMB/Share) | 0.44 | 0.13 | 238.46% |
| Diluted earnings per share (RMB/Share) | 0.44 | 0.13 | 238.46% |
| Weighted average ROE | 12.60% | 4.08% | 8.52% |
| End of this period | End of last year | Increase/decrease in this period-end over that of last year-end | |
| Total assets (RMB) | 18,563,101,630 | 17,882,914,898 | 3.80% |
| Net assets attributable to shareholders of the listed company (RMB) | 11,258,594,182 | 10,212,989,847 | 10.24% |
The total share capital of the company as of the previous trading day of disclosure：
| The total share capital of the company as of the previous trading day of disclosure (share) | 3,070,692,107 |
| Fully diluted earnings per share calculated with latest equity (RMB/share) | 0.44 |
V. Difference of accounting data under domestic and overseas accounting standards
1. Differences of the net profit and net assets disclosed in financial report prepared under international andChinese accounting standards
□ Applicable √ Not applicable
No such differences in the report period.
2. Difference of the net profit and net assets disclosed in financial report prepared under overseas andChinese accounting standards
□ Applicable √ Not applicable
No such differences in the report period.
3. Explanation of the difference of accounting data under domestic and overseas accounting standards
□ Applicable √ Not applicable
VI. Items and amounts of non-recurring 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) | 137,638 | |
| 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) | 34,784,072 | |
| In addition to the effective hedging business related to the normal business of the company, the profit and loss from changes in fair value arising from the holding of trading financial assets, derivative financial assets, trading financial liabilities and derivative financial liabilities, as well as the investment income from the disposal of trading financial assets, derivative financial assets, trading financial liabilities, derivative financial liabilities and other creditor's rights investments | 3,672,330 | |
| Other non-operating income and expenditure except for the aforementioned items | -8,910,187 | |
| Less: Impact on income tax | 5,384,885 | |
| Impact on minority shareholders’ equity (post-tax) | 1,596,031 | |
| Total | 22,702,937 | -- |
Explain reasons for the non-recurring profit (gain)/loss defined by Q&A Announcement No.1 on Information Disclosure forCompanies Offering Their Securities to the Public --- Non-recurring Profit/loss, and the items defined as recurring profit (gain)/lossaccording to the lists of non-recurring profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for CompaniesOffering Their Securities to the Public --- Non-recurring Profit/loss.
□ Applicable √ Not applicable
It did not exist that items defined as recurring profit (gain)/loss according to the lists of non-recurring profit (gain)/loss in Q&AAnnouncement No.1 on Information Disclosure for Companies Offering Their Securities to the Public --- Non-recurring Profit/loss inthe report period.
Section III. Business Discussion and Analysis
I. Main business of the Company in the report period
(I)Main business of the Company
CSG is a leading domestic brand of energy-saving glass and a renowned brand of solar PV products and display devices. Its productsand technologies are very popular at home and abroad. Its main business covers R&D, manufacturing and sales of highquality floatglass and architectural glass, solar glass, silicon material, renewable energy products such as PV battery and modules, and newmaterials and information display products such as ultra-thin electronic glass and display devices. It also provides one-stop servicessuch as project development, construction, operation and maintenance of solar photovoltaic power plants.Flat glass industryCSG now has 10 float glass production lines representing the most advanced technology, 2 solar glass production lines and 12 solarglass deep processing production lines in Dongguan, Chengdu, Langfang, Wujiang, Xianning, and also has quartz sand raw materialprocessing and production bases in Sichuan Jiangyou and Guangdong Qingyuan. The annual capacity of various high-grade floatglass has reached more than 2.47 million tons and the annual capacity of solar glass has reached over 0.43 million tons. The floatglass products cover high-grade float glass and ultra-clear float glass with various thicknesses from 1.3mm to 25 mm, and theperformance of the products all reach the leading level in China. Solar glass has a capacity of 60 million square meters per year ofdeep processing, the products of which cover a variety of thickness of 2-4mm deep processing products. Combining the rapidincrease in the penetration rate of dual-glass modules and the Company's future development needs, the Company is building a totalof three lightweight and high-efficiency double-glass processing production lines in Wujiang and Dongguan, adding 36 millionsquare meters of photovoltaic glass processing capacity, which is expected to be put into operation in 2021.To make up for theshortcomings of the Group's photovoltaic glass business capacity and large-scale layout, the Company signed an investmentagreement with the Fengyang County Government of Anhui Province to build a manufacturing base of lightweightandhigh-permeability panels for solar energy equipment, which contains the construction of four photovoltaic glass production lines andsupporting processing lines with a daily melting capacity of 1,200 tons per line. At present, the construction of the project isprogressing smoothly as planned. In addition, the Group is building a photovoltaic glass production line and supporting processinglines with a daily melting capacity of 1,200 tons in Xianning base. At present, the above-mentioned projects are progressing smoothlyas planned.The glass of CSG is widely used in high-end architectural curtain walls, decoration and furniture, reflective mirror, automotivewindshield, scanner and photocopier transparent panel, home appliance panel, display devices protection and solar energy field. TheCompany’s products are sold all over the world, and it has established long-term, stable business cooperation with many well-knownprocessing enterprises.
Architectural glass industry
CSG Group is one of the largest suppliers of high-grade engineering and architectural glass in China. It has built five energy-savingglass processing bases in Tianjin, Dongguan, Xianning, Wujiang and Chengdu.In order to better serve the construction needs ofBeijing Tianjin Hebei, Yangtze River Delta, Guangdong, Hong Kong and Macao megalopolis, the Board of Directors of the Groupsuccessively approved the construction of Zhaoqing architectural glass base, Wujiang architectural glass intelligent factory andTianjin architectural glass expansion project in 2020. The above projects will be put into operation gradually from the third quarter ofthis year, which will further strengthen the competition and service capabilities of the Group's architectural glass business in the mainbattlefield of urban construction, and it will accumulate valuable experience for the construction and operation of CSG'snew-generation architectural glass processing base in the era of intelligent manufacturing. At the same time, in line with the trend of
urban construction extending to the mainland in depth, the Group has paid close attention to the layout of architectural glassproduction capacity in the emerging central city group in the mainland. The Board of Directors of the Group has approved theconstruction of a new architectural glass base in Xi'an, and further seeks to lay out a class I or class II architectural glass processingbase suitable for its scale and demand in areas with similar conditions. In 2017, CSG low-E coated glass was awarded the title ofSingle Champion Product by the Ministry of Industry and Information Technology, and it passed the review again in 2020, whichfully proves the leading position of CSG architectural glass in the industry.The Company has the world's leading glass deep processing equipment and testing equipment, and its products cover allkindsofengineering and construction glass. The Company's R&D and application of glass coating technology keep space with the world andits technology of high-end product even leads the world. Following the second generation of energy-saving glass products, theCompany has successively developed the third generation and multi-function energy-saving glass products with continuousimproving energy-saving and heat-preservation effect. The domestic high-end market share of high-quality energy-saving andenvironment-friendly LOW-E insulating glass far exceeds that of competitors.At present, the Company’s coated insulating glass andcoated glass have reached annual capacity of more than16.00 million square meters and 36.00 million square meters respectively.The Company’s quality management system for engineering and architectural glass has been respectively approved by organizationsof UK AOQC and Australia QAS. The product quality which meets the national standards of the US, the UK and Australia enablesCSG has an advantage in the international tendering and bidding. Since 1988, CSG's engineers and technicians have beencontinuously participating in the formulation and compilation of various national standards and industry standards.Varioushigh-quality architectural glass of the Company has been used in many landmark buildings at home and abroad, such as BeijingCapital International Airport, CCTV, Shanghai Oriental Fisherman’s Wharf, China Resources Headquarters Building, ShenzhenKingKey100 Building, Hong Kong-Zhuhai-Macao Bridge Zhuhai port, Hangzhou Yintai Plaza, Xiamen Yinglan InternationalFinancial Center, Gongga Airport in Lhasa, Zhuhai Jinwan Aviation City HUAFA International Business Center, Beijing DongzhimenTransportation Hub, Hangzhou Xiaoshan International Airport, Zhuhai International Convention and Exhibition Center Phase 2, PingAn Financial Center of China, National Convention Center, Beijing Deputy Administrative Center, Beijing Daxing InternationalAirport, Chengdu Tianfu International Airport, Hangzhou Hampton and other more than ten Hilton Hotels, Hong Kong Four SeasonsHotel, Melbourne Airport, Midtown, International Centre of Abu Dhabi, Egypt's new capital CBD, Korea LCT and Metropolis Phase2B.Electronic glass and display industry
In 2021, the Company's electronic glass business continues to develop. Its four subsidiaries, Hebei Panel, Yichang Photoelectric,Qingyuan New Energy-Saving Materials and Xianning Photoelectric continued to actively implement product upgrading and marketupgrading in the application fields of intelligent electronic terminals, touch components, vehicle mounted display, industrial controland commercial display, military security and smart home, so that the market share and brand effect of the Company's medium andhigh aluminum electronic glass products could improve greatly. Rich product structure, reliable delivery guarantee and strongtechnical innovation help the Company’s electronic glass business maintain its dominant positionin the fierce market competition.In 2021, the subsidiary Xianning CSG Photoelectric Glass Co., Ltd. continues to expand high-end market share of itssecond-generation high-aluminum electronic glass and enhance the competitiveness of CSG's electronic glass products with itsexcellent product performance. The third-generation high-aluminum products have been successfully developed in the laboratory,and their performance can be fully benchmarked against the new generation of competitive products of international brands, whichwill further enhance the competitive advantages of electronic glass products in the future. Commercial production is currently beingpromoted as planned. The second phase of the Qingyuan CSG project "One Kiln and Two Lines", which has entered commercialoperation in 2021, further increases market share of CSG's electronic glass as well as consolidates and strengthens the Company'scompetitive advantage. In order to strengthen the Company's high-end market competitiveness in the field of ultra-thin electronicglass for touch applications, the Company plans to invest in a new ultra-thin electronic glass production line with a daily meltingcapacity of 110 tons and a supporting R&D center in Langfang, Hebei Province. At present, the project is progressing smoothly as
planned.After the completion of the above-mentioned projects, CSG Electronic Glass will achieve comprehensive coverage of electronicglass products from the third generation of high aluminum to medium-aluminum, soda-calcium, and from high to middle andlow-end electronic glass products, forming a more solid foundation for market competition.CSG has long been committed tobecoming the industry's leading electronic glass material solution provider, and it will continue to develop glass-based protectivematerials with higher strength and competitiveness in the field of touch display, develop human-computer interaction interfacematerials meeting the requirements of material interconnection in the fields of smart home, vehicle display and advanced medical,and develop revolutionary alternative materials in the fields of transportation and security.CSG has been engaged in the field of touch display since 2000, and now it has formed a complete touch industry chain from vacuummagnetron sputtering coating, fine pattern lithography processing, to touch display modules. Its main business includes ITOconductive glass, ITO conductive film, automotive TP-Sensor and automotive cover. Among them, ITO conductive glass and ITOconductive film, as the traditional business of the Company, are positioned at the middle and high-end customers at home and abroad.In the first half of 2021, the Company's ITO glass market had adequate orders, which created a good operating performance for theCompany.In recent years, the Company has focused on the layout of automotive business, and passed IATF16949 qualitymanagement system certification, its main business covers core products such as automotive AG glass, automotive TP-Sensor,automotive multifunctional composite cover, which are widely used in automotive intelligent terminals such as automotive centralcontrol screens, automotive rearview mirrors, automotive entertainment systems, etc. In the first half of 2021, TP-Sensor was welldeveloped, and its production and sales grew steadily. CSG has become a brand supplier of electronic application materials in thedisplay touch industry, which can provide customers with all-round one-stop touch screen material solutions. In the future, theCompany will continue to optimize the layout in the vehicle field, further build the high-end manufacturing industry chain of vehicletouch display, and become a high-quality component supplier in the field of automotive electronics.Solar energy and other industriesCSG has entered solar photovoltaic industry since 2005 and is one of enterprises which firstly enter the field in China. After morethan ten years of construction, operation and technological upgrading, CSG has built an industry chain in the field, coveringhigh-purity polycrystalline silicon materials, high-efficiency silicon wafer, silicon solar cell and modules, and the design andconstruction of solar photovoltaic power plants, by which the Company ensures the stable quality and best cost-efficiency of its PVproducts to customers.The Company has production capacity of high purity polycrystalline silicon with 9,000 tons per year, siliconwafer with 2.2 GW per year, solar cell with 1GWper year, modules with 0.4GW per year, and 132MW installed capacity ofphotovoltaic power plants.
(II)Overview of operation during the report period
In the first half of 2021, the national economy continued to recover steadily and keep the momentum of stable growth. As theepidemic has been effectively controlled in China, the domestic industry has recovered significantly and market demand has grownsteadily. In this background, the Company continues to follow the development path of "Polishing three pieces of glass (float glass,photovoltaic glass, electronicglass) and forge a brand (architectural glass)", focusing on glass business, and improve competitivenessby upgrading products. At the same time, it continues to promote refined management, reduce costs and increase efficiency, optimizeproduct structure, to further enhance the Company's comprehensive profitability, which lays a solid foundation for achievingsustainable development. In the first half of 2021, the Company seized industry development opportunities and firmly followed thepath of high-quality development. It strengthened its differentiated business strategy and reduced overall operating costs byimproving quality and efficiency, thereby increasing the profitability of its industries. Its overall operating performance increasedsignificantly year-on-year and achieved leapfrog development.In the first half of 2021, the Company achieved operating income ofRMB 6.615 billion, a year-on-year increase of 49.51%; realized net profit of RMB 1.369 billion, a year-on-year increase of 240.65%;and net profit attributable to shareholders of listed company was RMB 1.353 billion, a year-on-year increase of 245.5%.
Glass business:
In the first half of 2021, the overall economic situation of the glass industry had a well-begun and was forging ahead, with a steadyincrease in output, and a relatively high increase in industry revenue and profits. According to the data released by the NationalBureau of Statistics, the output of flat glass above designated size nationwide was 510 million weight boxes in the first half of theyear, a year-on-year increase of 10.8%.In recent years, the effects of the national supply-side structural reforms have appeared, thestructure of the glass industry has been optimized, and the benefits of the industry have rebounded.With the extension anddevelopment of the industrial chain, the market application fields and scope of glass products continue to expand, effectively creatingnew market demand. In addition to the traditional real estate market, it is also used in industrial fields such as automobiles,photovoltaics, electronic appliances, and home appliances. Driven by market demand growth and the impact of rising prices of rawand fuel materials, glass prices have continued to maintain a relatively high level.The Company seized the development opportunitiesof the industry, made full use of its complete industrial chain advantages, technical advantages and brand advantages, activelyexpanded the scale of advantageous industries and new businesses, and integrated product applications into more subdividedindustries through increasing R&D investment and product structure adjustment, so as to expand the product demand market;meanwhile, it carried out an effective cost control through measures such as reducing cost and increasing benefits; therefore theprofitability of its glass industry increased significantly.In the first half of 2021, the glass industry (float glass, photovoltaic glass andarchitectural glass) of the Company achieved operating income of RMB 5.353 billion, a year-on-year increase of 49%; net profit ofRMB 1.301 billion, a year-on-year increase of 189%.Float glass is the Company's traditional advantageous industry. The Company firmly follows the route of high-end differentiatedproducts, focusing on differentiated products such as ultra-white, ultra-wide, ultra-thick and ultra-thin, as well as the marketsegmentation of special application scenarios of float glass, among which, the proportion of ultra-white float glass in the Company'sown product structure is ahead of the industry, and creates the high-end series of CSG ultra-white "Blue Diamond"; through kiln linedesign, process setting adjustments, and transformation of some production equipment, the Company has greatly improved the yieldof ultra-thin and ultra-thick differentiated products with difficult production process and high value-added. The proportion ofdifferentiated products increases significantly, and market share of high-grade float glass enjoys continued leadership in subdivision.Benefiting from the Company's differentiated business strategy and the boom of industry, float glass, rising both on output and price,got a year-on-year increase of 75% in operating income, and a year-on-year increase of 491% in net profit in the first half of 2021.Photovoltaic glass ushers in development opportunities under the goal of ―Emission Peak and Carbon Neutrality‖. The Company hasbeen deeply engaged in the solar glass industry for more than 10 years, which is one of the earliest enterprises engaged in theproduction of photovoltaic glass in China, with profound accumulation of technical talents and mature production managementexperience, as well as obvious technical advantages and leading yield in the industry; at the same time, it maintains long-term anddeep cooperation with major component manufacturers. In order to achieve the strategic goal that China's non fossil energy accountsfor 25% of primary energy consumption by 2030, China's photovoltaic market will usher in a market-oriented construction peak, andthe increase in photovoltaic installations and the rapid increase in the penetration rate of double-glass modules will drive the demandfor photovoltaic glass. In this context, in order to break through the bottleneck of photovoltaic glass production capacity andeffectively improve product competitiveness through scale effect, the Company began large-scale expansion of photovoltaic glassproduction from 2020, to build 4 photovoltaic glass production lines and supporting processing lines with a daily melting capacity of1,200 tons per line, to build a total of three photovoltaic glass processing lines both in Wujiang and Dongguan bases, and aphotovoltaic glass production line and supporting processing lines with a daily melting capacity of 1,200 tons in Xianning base.While laying out a photovoltaic glass manufacturing base in Fengyang, the Company is also building a supporting ultra-white quartzsand production base in that area. The increase in production capacity and the layout of ultra-white quartz sand mines will drive theCompany's rapid cost reduction and continuous improvement in competitiveness. In the first half of the year, the operating income ofphotovoltaic glass increased by 30%; the net profit increased by 80% year on year.Architectural glass was affected by the sharp increase in the price of float glass in the first half of the year, and its cost increasedsignificantly. The Company's architectural glass business was mainly based on customized production, so it took a certain process
and time for the price increase of float glass to be effectively transmitted to the downstream. In response to cost pressure, theCompany actively increased efficiency through incremental increases. In the first half of the year, the operating income ofarchitectural glass increased by 38% year on year, and its net profit decreased by 57% year on year. In order to better grasp theconstruction needs of the Yangtze River Delta, Guangdong, Hong Kong and Macao megalopolis and fill the gaps in the regionalmarket, the Company successively started the expansion of architectural glass production capacity in 2020, including the constructionof Zhaoqing base, Xi'an base, Wujiang intelligent factory and Tianjin base expansion projects. With the gradual implementation ofnew projects, the market share of architectural glass will be further improved.Electronic glass and display business:
Benefiting from the commercial operation of Qingyuan Phase II "One Kiln and Two Lines" and the related subsidiaries in Xianning,Hebei, and Yichang achieved both production and sales growth due to product structure adjustments, the operating income of theelectronic glass and display industry in the first half of the year increased by 118% year on year; net profit increased by 315% yearon year. The positioning of ITO glass business of Hebei Panel Glasswas clearand the ITO market was active, therefore driving thegrowth of both volume and price. Relying on the rapid growth of the high-end electronic glass market and technologicalbreakthroughs in the CSG electronic glass field, in order to seize the market share of imported products and break the monopoly offoreign products, accelerate the realization of import substitution, during the report period, the Company's Board of Directorsapproved Hebei Panel Glass to invest in a new ultra-thin electronic glass production line with a daily melting capacity of 110 tonsand a supporting R&D center. After the completion of the project, it will effectively enhance the overall profitability of electronicglass, enhance core technical competitiveness, and further consolidate and strengthen the competitive advantage of CSG in thedomestic electronic glass field. At present, the project is progressing smoothly as planned.Qingyuan phase II "One Kiln and TwoLines" entered commercial operation at the end of last year and operated well, becoming a new profit growth point of the Company.The promotion of KK6 high-aluminum second-generation product of Xianning CSG Photoelectric Glass is in line with expectationand it has been certified by mainstream domestic mobile phone manufacturers. The continuous expansion of the market drovebusiness growth. The Line I of Qingyuan is currently in the process of cold repair and technological upgrading, preparing for theindustrialization of the third-generation high-aluminum products.The display business relies on the production capacity advantages ofCSG electronic glass and the accumulation of more than 20 years of research and development experience in the processing andmanufacturing of yellow light touch components. It has built core competitiveness around vehicle display and ITO touch products,and has gradually transformed into an important force for domestic suppliers of automotive display packaging materials, touchcomponents and modules. The operation of this business in the first half of last year was greatly affected by the epidemic preventionand control situation. Compared with the same period of last year, it achieved a significant growth this year. Through the adjustmentof product structure and the improvement of production yield, the production capacity efficiency was brought into full play.Solar and other businesses:
In the same period last year, due to the epidemic, the production bases of silicon wafer had been stagnant for a period of time, and theperformance had been greatly affected; this year, due to the rebound of silicon wafer prices, the production and sales increasedsignificantly year on year, the operating income increased significantly year on year, and the silicon wafer business turned aroundfrom deficit to profit. Driven by the goals of ―Emission Peak and Carbon Neutrality‖, the prosperity of the solar energy industryincreased in the first half of 2021 and the market demand was released. Meanwhile, the Company reduced production costs throughtechnological refinement, optimization and adjustment, and improved profitability through product structure optimization and qualityimprovement. Due to the combined efforts of internal and external forces, the operating income and net profit of the solar energybusiness increased year on year. In order to respond to the epidemic and fulfill its social responsibility, during the critical period ofthe epidemic, the Company made use of its PV production facilities and experience to develop and produce mask products. In 2021,as the epidemic was effectively controlled in China, demand for anti-epidemic materials such as masks dropped significantly.Relevant business has little impact on the Company's income and profits, and it will no longer be separately listed and explained inthe future. In the first half of the year, solar energy and other businesses achieved operating income of RMB 440 million and net
profit of RMB -9.37 million.
II. Core Competitiveness AnalysisCSG, one of the most competitive and influential large-scale enterprises in China's glass industry, is committed to the development ofenergy conservation renewable, and new material industry. After more than 30 years of development and accumulation, the Companyhas gradually formed a comprehensive competitive advantage in terms of products and brands, technology research and development,industrial chain and layout, talent team, and green development.
1. Product and brand advantages
"CSG" is a famous brand of domestic energy-saving glass, ultra-thin electronic glass, display and solar photovoltaic products. Itsproducts and technology are well-known at home and abroad. The trademarks "南玻" and "SG" held by the Company are both "Famous Trademark of China ". The Company has been listed in the "Top 50 Building Materials Enterprises in China", "Top 100Industry Leaders in Shenzhen" and "Preferred Brand of Architectural Glass" in Door and Window Curtain Wall Industry for manyyears. In 2018, "CSG" brand was recognized by the United Nations Industrial Development Organization as the fourth batch of"International Reputation Brand". CSG’s low-E coated glass and ultra-thin electronic glass were awarded the title of SingleChampion Product by the Ministry of Industry and Information Technology, and it is the only manufacturer in the domestic glassindustry that has two single champion products at the same time.
2. Technology research and development advantage
The Company has always attached importance to technology research and development since its establishment, and has takenindependent R&D as its foundation which leads the development of China's glass industry. At present, the Company has a total of 17high-tech enterprises; 1 national engineering laboratory; 1 national enterprise technology center; 3 national intellectual propertyadvantage enterprises; 5 Provincial Science and Technology Progress Awards; 2 Provincial Patent Awards; 5 provincial-levelengineering technology research centers; 10 provincial-level enterprise technology centers; 2 provincial-level academician expertworkstations; 4 provincial-level intellectual property demonstration construction enterprises; 1 Shenzhen post-doctoral innovationpractice base; 4 provincial-level Government Quality Awards. As of June 30, 2021, the Company has applied for a total of 2,093patents, including 846 inventions, 1,240 utility model patents, and 7 designs. The Company has accumulatively authorized 1,530,including 278 inventions, 1,240 utility models, and 7 designs.
3. Industrial chain and layout advantages
The Company has three complete industrial chains of energy-saving glass, electronic glass and display, and solar photovoltaic. Withthe continuous improvement of the technological level of each link of the industrial chain, the industrial advantage is obvious. At thesame time, the Company possesses a complete industry layout. The six major production bases are located in the Yangtze River Deltain East China, the Pearl River Delta in South China, the Chengdu-Chongqing region in Southwest China, Beijing-Jinji region inNorth China, and the Hubei region in Central China.
4. Talent team advantage
The advantage of the Company’s talent team is mainly reflected in two aspects: On the one hand, the Company has established astrong R&D team and R&D system. Through the construction of the core technical team, continuous R&D investment, and abundanttechnical reserves, it has built up important technological innovation support for the Company’s strategy. Meanwhile, it establishesIndustry-University-Research cooperation, actively cooperating with domestic colleges and universities which are in advantage insilicate materials industry, to accelerate the transformation of scientific research results, and strengthen basic research; on the otherhand, an excellent and stable management team is one of the most fundamental guarantees for the Company’s rapid and stable
development. The Company has formed a good echelon training mechanism for professional managers. At present, the Company'ssenior management team has comparative advantages in terms of academic background, professional qualities, knowledge reserves,management concepts and experience.
5. Green development advantage
The Company prospectively chooses the enterprise development path of environmental protection and green development.Environmental protection is the lifeline of the survival and development of glass enterprises and the concentrated embodiment ofcorporate social responsibility in high energy consuming industries. As early as more than ten years ago, CSG took the lead in theindustry to use natural gas in all furnace production lines, and at the same time took the lead in the industry to adopt waste heatpower generation, distributed photovoltaic power generation and other methods to achieve comprehensive energy utilization, andadopt comprehensive exhaust gas treatment such as desulfurization, denitration and dust removal to achieve ultra-low emission,which is far lower than the national standard pollutant emission value. With the promotion of the goal of ―Emission Peak and CarbonNeutrality‖ and the continuous tightening of environmental protection policies, the Company, as a pioneer in the green developmentof the industry, has won a broad development space for itself.
III. Main business analysisOverviewPlease refer to the relevant content of ―I. Main business of the Company in the report period‖.Year-on-year changes of main financial data
Unit: RMB
| The report period | The corresponding period of last year | Increase /decrease year-on-year（%） | Reasons of change | |
| Operating income | 6,614,802,538 | 4,424,221,349 | 49.51% | Mainly due to the rise in the price of float glass and the increase in production capacity of electronic glass |
| Operating costs | 4,126,627,145 | 3,159,567,031 | 30.61% | Mainly due to the increase of operating income and the rise of the price of some raw materials |
| Sales expenses | 125,326,015 | 161,639,534 | -22.47% | |
| Administration expenses | 354,914,704 | 317,419,407 | 11.81% | |
| Financial expenses | 86,999,999 | 131,743,197 | -33.96% | Mainly due to the decrease of interest expense |
| Income tax expenses | 255,280,290 | 84,115,208 | 203.49% | Mainly due to the increase in total profit |
| R&D investment | 224,886,882 | 145,063,647 | 55.03% | Mainly due to the increase in R&D investment |
| Taxes and surcharges | 73,966,054 | 52,338,392 | 41.32% | Mainly due to the increase in main business income |
| Assets impairment loss | 26,753,082 | -154,053 | Mainly due to the provision for impairment loss of long-term assets |
| Income from investment | 3,672,330 | Mainly due to the income generated by structured deposits | ||
| Income from asset disposal | 137,638 | -342,005 | Mainly due to gains from disposal of non-current assets | |
| Non-operating income | 7,551,798 | 2,218,131 | 240.46% | Mainly due to claim income and unpaid payments |
| Net cash flow arising from operating activities | 1,698,245,375 | 779,644,389 | 117.82% | Mainly due to the increase in cash received from sales of goods |
| Net cash flow arising from investment activities | -1,170,930,677 | -129,222,465 | Mainly due to the purchase of structured deposits | |
| Net cash flow arising from financing activities | -1,002,452,352 | 588,811,534 | -270.25% | Mainly due to the decrease in cash received from issuing bonds |
Major changes on profit composition or profit resources in the report period
□Applicable √Not applicable
There was no major change in the Company's profit composition or profit resources during the report period.Composition of operating income
Unit: RMB
| The report period | The corresponding period of last year | Increase/decrease y-o-y | |||
| Amount | Ratio in operating income | Amount | Ratio in operating income | ||
| Total of operating income | 6,614,802,538 | 100% | 4,424,221,349 | 100% | 49.51% |
| According to industry | |||||
| Glass industry | 5,352,576,980 | 80.92% | 3,591,815,295 | 81.18% | 49.02% |
| Electronic glass & Display industry | 880,888,108 | 13.32% | 404,864,974 | 9.15% | 117.58% |
| Solar energy and other industries | 440,453,797 | 6.66% | 478,795,753 | 10.82% | -8.01% |
| Undistributed | 42,652,849 | 0.64% | 37,835,287 | 0.86% | 12.73% |
| Amount of unutilized | -101,769,196 | -1.54% | -89,089,960 | -2.01% | 14.23% |
| According to product | |||||
| Glass products | 5,352,576,980 | 80.92% | 3,591,815,295 | 81.18% | 49.02% |
| Electronic glass & Display products | 880,888,108 | 13.32% | 404,864,974 | 9.15% | 117.58% |
| Solar energy and other products | 440,453,797 | 6.66% | 478,795,753 | 10.82% | -8.01% |
| Undistributed | 42,652,849 | 0.64% | 37,835,287 | 0.86% | 12.73% |
| Amount of unutilized | -101,769,196 | -1.54% | -89,089,960 | -2.01% | 14.23% |
| According to region | |||||
| Mainland China | 5,993,997,205 | 90.61% | 3,862,784,501 | 87.31% | 55.17% |
| Overseas | 620,805,333 | 9.39% | 561,436,848 | 12.69% | 10.57% |
List of the industries, products or regions exceed 10% of the operating income or operating profits of the Company
√Applicable □ Not applicable
Unit: RMB
| Operating income | Operating cost | Gross profit ratio | Increase/decrease of operating income y-o-y | Increase/decrease of operating cost y-o-y | Increase/decrease of gross profit ratio y-o-y | |
| According to industry | ||||||
| Glass industry | 5,352,576,980 | 3,287,236,125 | 38.59% | 49.02% | 27.07% | 10.62% |
| Electronic glass & Display industry | 880,888,108 | 527,496,246 | 40.12% | 117.58% | 99.33% | 5.48% |
| According to product | ||||||
| Glass products | 5,352,576,980 | 3,287,236,125 | 38.59% | 49.02% | 27.07% | 10.62% |
| Electronic glass & Display products | 880,888,108 | 527,496,246 | 40.12% | 117.58% | 99.33% | 5.48% |
| According to region | ||||||
| Mainland China | 5,993,997,205 | 3,714,375,917 | 38.03% | 55.17% | 34.59% | 9.47% |
| Overseas | 620,805,333 | 412,251,228 | 33.59% | 10.57% | 3.11% | 4.81% |
Under the circumstances that the statistical standards for the Company’s main business data adjusted in the report period, theCompany's main business data in the recent year is calculated based on adjusted statistical standards at the end of the report period
□ Applicable √ Not applicable
Reasons for the year-on-year change of more than 30% in relevant data
√Applicable □ Not applicable
1. Glass industry: the Company's operating income of this industry increased by 49.02% year on year, mainly due to the rise in theprice of float glass.
2. Electronic glass and display industry: the Company's operating income of this industry increased by 117.58% year on year, mainlydue to the increase in production capacity of electronic glass. Operating cost increased by 99.33% year on year, mainly due to thegrowth of operating income.IV. Non-core business analysis
√Applicable □Not applicable
Unit: RMB
| Amount | Percentage to total profits | Explanation of the reason | Whether sustainable or not | |
| Income from investment | 3,672,330 | 0.23% | Mainly the income from the purchase of structured deposits | No |
| Other income | 36,553,804 | 2.25% | Mainly government subsidies, etc | No |
| Impairment of assets | 26,753,082 | 1.65% | Mainly the losses from the provision of long-term asset impairment | No |
| Non-operating income | 7,551,798 | 0.46% | Mainly due to claim income and unpaid payments | No |
| Non-operating expenses | 16,461,985 | 1.01% | Mainly the return of government subsidies, etc. | No |
V. Assets and liabilities
1. Significant changes in assets composition
Unit: RMB
| End of the report period | End of the corresponding period of last year | Increase or decrease in proportion | Explanation of significant changes | |||
| Amount | Percentage to total assets | Amount | Percentage to total assets | |||
| Monetary funds | 1,649,433,538 | 8.89% | 2,125,788,903 | 11.89% | -3.00% | Mainly due to the purchase of structured deposits |
| Accounts receivable | 842,381,600 | 4.54% | 681,467,133 | 3.81% | 0.73% | Mainly due to the increase of accounts receivable of Architectural glass subsidiaries |
| Inventory | 1,054,226,305 | 5.68% | 815,156,318 | 4.56% | 1.12% | Mainly due to the increase in raw material stocking, etc. |
| Advance payment | 141,433,334 | 0.76% | 85,928,641 | 0.48% | 0.28% | Mainly due to the increase of prepayment for materials of some subsidiaries |
| Investment property | 383,084,500 | 2.06% | 383,084,500 | 2.14% | -0.08% | |
| Fixed assets | 8,742,434,064 | 47.10% | 9,145,644,569 | 51.14% | -4.04% | |
| Construction in progress | 2,290,839,174 | 12.34% | 1,893,380,611 | 10.59% | 1.75% | Mainly due to the increase in new projects under construction in some subsidiaries |
| Right of use assets | 9,298,566 | 0.05% | 0.05% | Mainly due to the implementation of the new lease standard and the reclassification of long-term deferred expenses to right-of-use assets | ||
| Long-term deferred expenses | 577,769 | 0.00% | 10,381,937 | 0.06% | -0.06% | Mainly due to the implementation of the new lease standard and the reclassification of long-term deferred expenses to right-of-use assets |
| Other non-current | 451,995,544 | 2.43% | 193,359,445 | 1.08% | 1.35% | Mainly due to the advance payment of |
| assets | engineering equipment for the construction of some subsidiaries | |||||
| Short-term loan | 312,560,100 | 1.68% | 352,895,571 | 1.97% | -0.29% | Mainly due to the repayment of part of the loan |
| Contract liabilities | 273,225,477 | 1.47% | 296,776,624 | 1.66% | -0.19% | Mainly due to the decrease in advances on salesduring the report period |
| Notes payable | 304,710,352 | 1.64% | 144,851,192 | 0.81% | 0.83% | Mainly due to the increase in new bills issued in the report period |
| Non-current liabilities due within one year | 135,934,639 | 0.73% | 927,531,709 | 5.19% | -4.45% | Mainly due to the repayment of medium-term notes |
| Long-term loan | 1,190,557,017 | 6.41% | 853,253,983 | 4.77% | 1.64% | Mainly due to the increase in long-term loans of the headquarters and some subsidiaries |
2. Main overseas assets
□Applicable √Not applicable
3. Assets and liabilities at fair value
√Applicable □Not applicable
Unit: RMB
| Item | Opening balance | Profit and loss from changes in fair value in the current period | Cumulative changes in fair value included in equity | Impairment accrued in the current period | Purchase amount for this period | Amount sold in this period | Other changes | Closing balance |
| Investment property | 383,084,500 | 383,084,500 |
Whether the measurement attributes of the company's main assets changed significantly during the report period
□Yes √No
4. Limited asset rights as of the end of the report period
Unit: RMB
| Item | Closing book value | Limited reason |
| Monetary funds | 1,760,707 | Limited circulation of margin |
| Fixed assets | 17,872,800 | Limited mortgage loan |
| Total | 19,633,507 | -- |
VI. Investment analysis
1. Overall situation
√Applicable □Not applicable
| Investment in the report period (RMB) | Investment in the same period of last year (RMB) | Change range |
| 2,389,404,198 | 458,013,392 | 421.69% |
2. The major equity investment obtained in the report period
□Applicable √Not applicable
3. The major ongoing non-equity investment in the report period
√Applicable □ Not applicable
Unit: RMB 0,000
| Project | Way of investment | Fixed asset investment or not | Industry involved | Amount invested in the report period | Accumulative amount actually invested by the end of the report period | Source of funds | Progress of project (ongoing projects) | Expected return | Accumulative revenue achieved by the end of the report period | Reasons for not achieving the planned progress and the expected return | Date of disclosure (if applicable) | Index of disclosure (if applicable) |
| Anhui Fengyang Lightweigh&high-permeability panel for solar energy equipment manufacturing base project | Self-built | Yes | Manufacturing industry | 12,970 | 14,474 | Non-public issuance of stocks, own funds and loans from financial institutions | CSG plans to invest in Anhui Province for the project of lightweight &high-permeability panel for solar energy equipment manufacturing base in 2020-2022.The project is under construction. | 43,566 | No profit as the project is in the construction period. | March 6, 2020 | Notice number: 2020-010 | |
| Anhui Fengyang quartz sand project in Anhui Province | Self-built | Yes | Manufacturing industry | 1,209 | 1,387 | Own funds and loans from financial institutions | CSG plans to build a new production base of low iron (ultra-white) quartz sand with an annual output of 600,000 tons in Fengyang, Anhui Province, and obtain the raw ore right of quartz sand. The project is under construction. | 8,238 | No profit as the project is in the construction period. | March 6, 2020 | Notice number: 2020-010 | |
| Zhaoqing CSG high-grade energy conservation glass | Self-built | Yes | Manufacturing industry | 8,121 | 12,895 | Own funds and loans from | CSG plans to invest in the construction of energy-saving glass production project in | 6,988 | No profit as the project is in the | December 13, 2019 | Notice number: 2019-077 |
| production line project | financial institutions | Zhaoqing from 2019 to 2021. After the production, the company will produce 2.5 million square meters of energy-saving insulating glass and 3.5 million square meters of coated energy-saving products. The project is under construction. | construction period. | |||||||||
| Zhaoqing CSG high-grade automotive glass production line project | Self-built | Yes | Manufacturing industry | 879 | 1,219 | Own funds and loans from financial institutions | CSG plans to invest in the construction of high-end automotive glass production line in Zhaoqing from 2019 to 2021. The project is under construction. | 5,800 | No profit as the project is in the construction period. | December 13, 2019 | Notice number: 2019-077 | |
| Dongguan solar light and high-efficiency double-glass processing production line construction project | Self-built | Yes | Manufacturing industry | 1,568 | 2,092 | Own funds and loans from financial institutions | CSG plans to build a lightweight and high-efficiency double-glass processing production line in Dongguan Solar. After the production line is completed, it is expected to add 1 million square meters of double-glass production capacity per month, with an annual production capacity of 12 million square meters. The project is under construction. | 2,341 | No profit as the project is in the construction period. | August 24, 2020 | Notice number: 2020-061 | |
| Xianning CSG 1200T/D Photovoltaic Packaging | Self-built | Yes | Manufacturing industry | 337 | 337 | Own funds and loans from financial | CSG plans to build a photovoltaic kiln with a daily melting capacity of 1,200 tons and supporting deep processing lines in Xianning CSG. | 12,835 | No profit as the project is in the construction | March 27, 2021 | Notice number:2021-008 |
| Material Production Line Project | institutions | The project is under construction. | period. | |||||||||
| Hebei Panel Glass ultra-thin electronic glass Line II construction project | Self-built | Yes | Manufacturing industry | 37 | 994 | Own funds and loans from financial institutions | CSG plans to build an ultra-thin electronic glass production line with a daily melting capacity of 110 tons and a supporting R&D center in Hebei Panel Glass. The project is under construction. | 4,671 | No profit as the project is in the construction period. | March 27, 2021 | Notice number:2021-008 | |
| Wujiang Float Lightweight and High-efficiency double-glass processing production line construction project | Self-built | Yes | Manufacturing industry | 515 | 872 | Own funds and loans from financial institutions | CSG plans to build two lightweight and high-efficiency double-glass processing production lines in Wujiang Float. After the production line is completed, it is expected to add 2 million square meters of double-glass production capacity per month, with an annual production capacity of 24 million square meters. After the project is completed, it will give full play to the technical advantages of Wujiang Float double-glass, enhance market competitiveness, and expand the scale of the Company's benefits. The project is under construction. | 4,785 | No profit as the project is in the construction period. | August 24, 2020 | Notice number: 2020-061 | |
| Tianjin Energy-saving | Self-built | Yes | Manufacturing industry | 6,777 | 6,777 | Own funds and loans | CSG intends to invest in a new coating production line in Tianjin | 1,640 | No profit as the project is | April 30, 2020 | Notice number: |
| Coating Production Line Purchase and Upgrade Project | from financial institutions | CSG, and at the same time upgrade and transform the existing coating line B and line C. The project plans to increase the annual production capacity of 2.76 million square meters through the purchase of coating lines and the upgrading and transformation of existing production lines. | in the construction period. | 2020-023 | ||||||||
| Wujiang Architectural Glassnewly building intelligent manufacturing plant construction project | Self-built | Yes | Manufacturing industry | 2,430 | 2,506 | Own funds and loans from financial institutions | CSG plans to build a full-process flexible automated production line covering cutting, edging, tempering, insulatingand other processes inWujiang CSG East China Architectural Glass Co., Ltd., using the reserved industrial land in the factory area. The new factory building area is 31,968 square meters, and the new intelligent manufacturing production line has an annual output of LOW- E 1.2 million square meters of energy-saving insulating glass. The project is underconstruction. | 5049 | No profit as the project is in the construction period. | June 24, 2020 | Notice number: 2020-051 | |
| Xi'an CSG Energy-saving glass production | Self-built | Yes | Manufacturing industry | Own funds and loans from financial | CSG Group plans to invest in Xi'an, Shaanxi Province for building a high-end energy-saving glass production line with an | 4,222 | No profit as the project is in the preparation | November 7, 2020 | Notice number: 2020-070 |
| line project | institutions | annual output of 2.1 million square meters of insulating energy-saving glass. A 3.5 million square meter energy-saving glass production line with coated energy-saving products. | period. | |||||||||
| Dongguan CSG Solar Double-Glass Calendering Line Technical Transformation and Upgrade Project | Self-built | Yes | Manufacturing industry | Own funds and loans from financial institutions | CSG plans to carry out cold repair and technical transformation of the 650T/D line ultra-white solar kiln in Dongguan Solar Phase III, and start the technical transformation and upgrade project of double-glass calendering line. After the project is completed, it will ensure that the product quality, output efficiency, energy consumption level and cost advantage are at the leading domestic level. The project is expected to start in the fourth quarter of 2021. | 6,067 | The project has no profit for the time being. | June 8, 2021 | Notice number: 2021-025 | |||
| Total | -- | -- | -- | 34,843 | 43,553 | -- | -- | 106,202 | -- | -- | -- |
4. Financial assets investment
(1) Securities investment
□ Applicable √ Not applicable
(2) Derivative investment
□ Applicable √ Not applicable
VII. Sale of major assets and equity
1. Sale of major assets
□ Applicable √ Not applicable
2. Sale of major equity
□ Applicable √ Not applicable
VIII. Analysis of main subsidiaries and joint-stock companies
√Applicable □ Not applicable
Particular about main subsidiaries and joint -stock companies which have influence on the Company's net profit by over 10%
Unit: RMB
| Name of company | Type | Main business | Registered capital | Total assets | Net assets | Operating income | Operating profit | Net profit |
| Chengdu CSG Glass Co., Ltd. | Subsidiary | Development, manufacture and sales of various special glass | 260 million | 1,116,445,114 | 736,969,337 | 857,799,131 | 388,418,350 | 329,447,908 |
| Hebei CSG Glass Co., Ltd. | Subsidiary | Manufacture and sales of various special glass | USD 48.06million | 1,029,661,312 | 663,685,210 | 672,341,448 | 276,419,251 | 237,107,493 |
| Xianning CSG Glass Co., Ltd. | Subsidiary | Manufacture and sales of various special glass | 235 million | 909,004,761 | 769,151,771 | 566,029,595 | 232,602,336 | 197,720,637 |
| Wujiang CSG Glass Co., Ltd. | Subsidiary | Manufacture and sales of various special | 565.04 million | 1,608,669,875 | 1,290,409,600 | 1,101,694,677 | 358,016,286 | 306,218,797 |
| glass | ||||||||
| Dongguan CSG Solar Glass Co., Ltd. | Subsidiary | Manufacture and sales of Solar-Energy Glass products | 480 million | 1,408,589,964 | 1,104,928,960 | 745,011,559 | 209,003,301 | 177,934,920 |
Particulars about subsidiaries obtained or disposed in report period
□ Applicable √ Not applicable
IX. Structured main bodies controlled by the Company
□ Applicable √ Not applicable
X.Risks the Company faces and countermeasuresIn 2021, in the face of ―New Normal‖ of domestic economic development and the task of building a―CenturyCSG‖, the Companywill face the following risks and challenges:
①The epidemic situation at home and abroad and the international political environment are still facing many uncertainties.Affected by the repeated outbreaks ofthe epidemicand the complicated international political environment, the domestic economystill faces many challenges and uncertainties. In the second half of the year, the Company will continue tonormalize epidemicprevention and control, strengthen its attention to the market, timely adjust the strategy according to market changes, and strive toachieve the annual core work objectives through steady operation.
②The glass industry is facing fierce competition among similar products and pressure from rising raw materials and fuels; theelectronic glass and display industry faces the risk of accelerating material technology upgrades due to the continuous rapid iterativeupgrade of technology requirements in downstream application scenarios; the solar energy industry faces the challenge of animbalance in the supply chain which leads to rapid price increases in some links.To cope with aforesaid risks, the Company will takethe following measures:
A. In the flat glass industry, the Company wil enhance the competitiveness of the industry through continuous lean management,differentiated management and product structure optimization,and expand the scale of the industry by investing in new productionlines and enhance the competitiveness of the industry;B. In the architectural glass industry, the Company will strengthen the development of high-end market and overseas market, activelydevelop traditional residence market, and at the same time, maintain the industrial advantageous position of the Company throughmarket-oriented extension of industrial chain;C.In the solar energy industry, the Company will strengthen the integration of resources across the industry chain, increase R&Dinvestment, strengthen operation management, and maintain corporate competitiveness in market segmentation; pay close attention tomarket changes, vigorously carry out cost reduction and efficiency enhancement activities, implement energy-saving andconsumption-reducing measures, andtimely upgrade and replace the equipment, to improve production efficiency and ensure theCompany's benefits;D. In electronic glass and display devices industry, the Company will strengthen research and development of new technology aswell as new product, maintain its technical leading advantage in the industry, and rapidly develop terminal market and improveindustrial profitability.In the display industry, the Company will strengthen the research and development of new technologies andproducts, maintain the leading edge of industry technology, further strengthen the development of terminal market and improve theprofitability of the industry.
③The market price of solar glass and PV industry has fluctuated greatly. At the same time, the prices of upstream raw materials have
fluctuated, and the current rising labor costs have brought risks to the Company's operations.To cope with risk, the Company will take the following measures:
A. Vigorously exploit potential and increase efficiency, and effectively implement energy saving and consumption reduction tocontrol production cost;B. Focus on the market change, lock the price of bulk commodity at proper time, and take advantage of bulk purchases to reducepurchase costs;C. Improve automatic production level, raise labor productivity;D. Strengthen the development of new application market and disperse the risk of single market.
④Risk of fluctuation of foreign exchange rate: At present, nearly 9.48% of the sales revenue of the Company is from overseas, in thefuture, the Company will further develop overseas business, and therefore, the fluctuation of exchange rate will bring certain risk tothe operation of the Company. To cope with such risk, the Company will settle exchange in time and use safe and effective riskevading instrument and product to relatively lock exchange rate and reduce the risk caused by fluctuation of exchange rate.
Section IV. Corporate GovernanceI. Particulars about annual general meeting and extraordinary general meeting held in thereport period
1. Particulars about Shareholders' General Meeting in the report period
| Meeting session | Type of meeting | Investor participation ratio | Date of the meeting | Disclosure date | Disclosure index |
| The First Extraordinary Shareholders’ General Meeting of 2021 | Extraordinary general meeting | 29.26% | March 8, 2021 | March 9, 2021 | Juchao website（www.cninfo.com.cn）, Notice number: 2021-006 |
| The Second Extraordinary Shareholders’ General Meeting of 2021 | Extraordinary general meeting | 28.84% | April 13, 2021 | April 14, 2021 | Juchao website（www.cninfo.com.cn）, Notice number: 2021-013 |
| Annual Shareholders’ General Meeting of 2020 | Annual general meeting | 28.48% | May 7, 2021 | May 8, 2021 | Juchao website（www.cninfo.com.cn）, Notice number: 2021-024 |
2. Extraordinary general meeting which is requested to convene by the preferred shareholders who haveresumed the voting right
□ Applicable √Not applicable
II. Changes in directors, supervisors and senior management of the company
□ Applicable √Not applicable
The directors, supervisors and senior management of the company did not change during the reporting period. For details, pleaserefer to the 2020 annual report.III.Profit distribution and capitalization of capital reserve in the report period
□ Applicable √Not applicable
The Company has no plans of cash dividend distribution, bonus shares being sent or converting capital reserve into share capital.IV. Implementation of the Company’s stock incentive plan, employee stock ownership plan orother employee incentives
□ Applicable √Not applicable
Section V.Environmental and social responsibilityI. Major environmental issues
Whether the listed company and its subsidiaries belong to the key pollutant discharge units announced by the environmentalprotection departmentYes
| Name of Company or subsidiary | Name of major pollutants and characteristic contaminants | Way of emission | Number of Exhaust vent | Exhaust vent distribution | Emission concentration | Implementation of pollutant emission standards | Total emission | Approved total emission | Excessive emissions |
| Xianning CSG Glass Co., Ltd. | Dust\Soot\ SO2\ Nitrogen oxide | Discharge after the treatment of denitrification and dust removal | 16 | Chimney, Exhaust vent | Dust≤30mg/m?; Soot≤25 mg/m?; SO2≤200 mg/m?; NOx≤350 mg/m?. | 《Emission standard of air pollutants for flat glass industry》(GB26453-2011) | Particulates: 12.196t; SO2: 104.003t; NOx: 194.514t. | Particulates: 96.82t/a; SO2: 636.5t/a； NOx: 1113.89t/a. | Reach the discharge standard |
| Chengdu CSG Glass Co., Ltd. | Dust\Soot\ SO2\ Nitrogen oxide | Discharged after denitrification, desulfurization and dust removal | 15 | Chimney, Exhaust vent | Dust≤30mg/m?; Soot≤20mg/m?; SO2≤200mg/m?; NOx≤350mg/m?. | 《Emission standard of air pollutants for flat glass industry》(GB26453-2011) | Particula12.72t; SO2: 177.9t；NOx: 289.2t. | Particulates: 129.395t/a; SO2: 1035.162t/a: NOx: 1811.536t/a. | Reach the discharge standard |
| Hebei CSG Glass Co., Ltd. | Dust＼Particulates＼SO2＼Nitrogen oxide | Dischargeafterdenitrification, desulfurization and dust removal treatment | 12 | Chimney, Exhaust vent | Dust≤20mg/m?; Particulates≤10mg/m?; SO2≤50mg/m?; NOx≤200mg/m?. | 《Emission standard of air pollutants for flat glass industry》DB13/2168-2015 Hebei Local Standard | Particulates: 3.24t; SO2: 12.636t；NOx: 110.604t. | Particulates: 59.78t/a; SO2: 498.18t/a； NOx: 982.2t/a. | Reach the discharge standard |
| WujiangCSG Glass Co., Ltd. | Particulates\SO2\ Nitrogen oxide | Discharged after denitrification, desulfurization and dust | 39 | Chimney, Exhaust vent | Particulates≤30mg/m?; SO2≤250 mg/m?; | 《Emission standard of air pollutants for flat glass industry》 | Particulates: 12.233t;SO2: | Particulates: 76.91t/a; | Reach the discharge standard |
| removal | NOx≤350 mg/m?. | (GB26453-2011) | 22.439t;NOx:177.28t. | SO2: 238.28t/a; NOx: 818.04t/a. | |||||
| Dongguan CSG Solar Glass Co., Ltd. | Dust\Soot\ SO2\ Nitrogen oxide | Discharge after the treatment of denitrification and dust removal | 22 | Chimney, Exhaust vent | Dust≤5mg/m?; Soot≤10 mg/m?; SO2≤400 mg/m?; NOx≤550 mg/m?. | 《Emission standard of air pollutants for glass industry》（DB 44-2159-2019） | Particulates: 6.10t; SO2: 130.52t；NOx: 239.69t. | Particulates: 34.85t/a; SO2: 300.99t/a; NOx: 535.67t/a. | Reach the discharge standard |
| Dongguan CSG Architectural Glass Co., Ltd. | PH\COD\ Ammonia nitrogen | Discharged to the sewage treatment plant after being treated by the company's sewage treatment station. | 1 | Discharge outlets of waste water | pH：6~9 COD：5 mg/L; Ammonia nitrogen: 0.537mg/L. | 《Guangdong Province water pollutant emission limit》（DB44/26-2001）the second period, the first grade standard | COD: 0.149t; Ammonia ;nitrogen:0.013t. | COD: 5.4t/a; Ammonia nitrogen: 0.6t/a. | Reach the discharge standard |
| Dongguan CSG PV-tech Co., Ltd. | Waste water:COD；Exhaust gas:NOx＼VOCX | The wastewater is discharged after being treated by the sewage station, and the exhaust gas is discharged after being treated by the exhaust gas treatment tower. | 20 | Sewage vent，Exhaust vent | Wastewater: COD≤70 mg/L; Exhaust gas: NOx≤30mg/ m?; VOCX≤30mg/m?. | 《Guangdong Province water pollutant emission limit》（DB44/26-2001）Second period first level standard；；《Battery industry pollutant discharge standards》（GB30484-2013）；Guangdong Provincial Local Standard 《Volatile organic compounds emission standard for furniture manufacturing industry》 | Wastewater: COD: 1.637t; Exhaust gas: Nitrogen oxide: 10.62t; VOC: 0.53t. | Wastewater: COD: 2.44t/a; Exhaust gas: Nitrogen oxide: 33.15t/a; VOC: 1.93t/a. | Reach the discharge standard |
| （DB44/814-2010）Second period standard | |||||||||
| Hebei Panel Glass Co., Ltd. | Dust＼Soot＼SO2＼Nitrogen oxide | Discharge after the treatment of denitrification and dust removal | 5 | Chimney, Exhaust vent | Dust≤30mg/m?; Soot≤10 mg/m?; SO2≤50 mg/m?; NOx≤200mg/m?. | 《Electrical Glass Industry Air Pollutant Emission Standards》(GB29495-2013) | Particulates: 0.075t; SO2:1.157t; NOx:1.774t. | Particulates: 8.2125t/a;SO2: 22t/a; NOx: 39.4t/a. | Reach the discharge standard |
| YichangCSG Display Co., Ltd. | COD＼Ammonia nitrogen＼Nitrogen oxide | The waste water is discharged after being treated by the sewage station, and the exhaust gas is discharged after being treated by the exhaust gas treatment tower. | 2 | Sewage vent，Exhaust vent | COD≤500mg/ L; NOx<240mg/m?. | 《Sewage Integrated Emission Standards》(GB8979-1996) Level 3 Standard；《The Integrated Emission Standard of Air Pollutants》（GB16297-1996） | COD: 43.38t. | COD: 99.5t/a； NOx: 22.4t/a. | Reach the discharge standard |
| Xianning CSG PhotoelectricGlass Co., Ltd. | Dust\Soot\ SO2\ Nitrogen oxide | Discharge after the treatment of denitrification and dust removal | 6 | Chimney, Exhaust vent | Dust≤15mg/m?; Soot≤15 mg/m?; SO2≤10 mg/m?; NOx≤350 mg/m?. | 《Electrical Glass Industry Air Pollutant Emission Standards》GB29495-2013 | Particulates: 0.96t NOx: 29.77t SO2: 0.038t. | Particulates: 17.656t/a;SO2: 65.6t/a; Nitrogen oxide: 163.81t/a. | Reach the discharge standard |
Construction and operation of pollution prevention and control facilitiesThe Company has built exhaust gas dust removal and denitrification system on production lines. The system runs normally, and theemission of exhaust gas meets regulations standard.The environmental impact assessment of construction projects and other environmental protection licenseAG+AF cover glass expansion project of Yichang CSG Display Co., Ltd. had completed the environmental impact assessment workand obtained approval in 2019, and is currently in the construction stage. The easy-clean glass coating production line project ofXianning CSG Energy-saving Glass Co., Ltd. had undergone an environmental impact assessment and obtained approval in 2018.The construction of the project has been completed and is currently in the trial production stage. Qingyuan CSG Energy-saving NewMaterials Co., Ltd. has an annual production capacity of 200,000 tons of special glass expansion project in 2019. The environmentalimpact assessment and approval were obtained. The environmental protection acceptance of the project was completed in 2021.Anhui CSG New Energy Material Technology Co., Ltd. had already carried out an environmental impact assessment and obtained
approval in 2020 for the project of manufacturing base for lightweight and high-transparent panels for solar equipment,and theproject is in the construction stage.Zhaoqing CSG Energy-saving Glass Co., Ltd. Zhaoqing Energy-saving CSG Group'senergy-saving project had conducted an environmental impact assessment and obtained approval in 2020, and the project is in theconstruction stage. The expansion project of special glass with an annual production capacity of 300,000 tons of Sichuan CSGEnergy Conservation Glass Co., Ltd. had undergone an environmental impact assessment and obtained approval in 2020, and theproject is in the construction stage. Other new projects of subsidiaries have also carried out the "three simultaneous" work ofenvironmental protection in construction projects, and have obtained pollutant discharge permits within the validity period. Inaccordance with relevant national regulations, all subsidiaries have timely carried out pollution discharge declarations, carried outpollution discharge declaration monitoring and paid environmental taxes.Emergency response plan system of environment incidentIn accordance with the national requirements, all subsidiaries prepared emergency environmental response plan for environmentincident, organized and carried out expert evaluation and filed with the local environmental protection department as required,conducted the emergency drill against environmental incidents. And there were no major environmental incidents occurred in the firsthalf of 2021.Environmental self-monitoring schemeSubsidiaries have built wastewater and exhaust gas online monitoring devices in accordance with the requirements of national lawsand regulations, construction project environmental impact assessment documents and their approvals, and are operating normally.They have regularly carried out effectiveness comparison audits of online monitoring facilities, and entrusted third-party units tocarry out Manual environmental monitoring is implemented to comprehensively monitor the discharge of pollutants, and themonitoring frequency shall be implemented in accordance with relevant monitoring technical guidelines or pollution dischargepermits.Other environmental information to be disclosedNil.Other information related to environment protectionNil.
II. Social responsibility
In the first half of 2021, the company focused on the following tasks in fulfilling its social responsibilities:
1. Protect the environment and promote sustainable development
CSG has been committed to energy management, energy saving and consumption reduction for a long time. The energy efficiencylevel of its main business, flat glass and engineering glass, ranks in the forefront of the industry, and the average unit energyconsumption and carbon emission intensity of the products are far lower than the industry average. In the first half of the year, theCompany implemented more than 80 energy-saving measures to further reduce carbon emissions by tens of thousands of tons. Thepower generation of renewable energy such as distributed photovoltaic power stations in the factory park accounted for more than 30%of the Group's total electricity consumption. In the first half of the year, a provincial-level environmental protection A-Classenterprise was newly added. At present, the Company has 3 subsidiaries that have been rated as national and provincialenvironmental protection A-Class enterprises, and 5 subsidiaries have been rated as national-level "Green Factory". In February, thesubsidiary Wujiang Float was regarded as the "Front-runner" in energy efficiency in the flat glass industry, and its practicalexperience was shared and promoted by the Department of Energy Conservation and Comprehensive Utilization of the Ministry of
Industry and Information Technology as the "Front-runner" in energy efficiency in the key energy-using industry.In the first half of the year, all new projects of the Company obtained environmental assessment approvals and obtained pollutiondischarge permits within the validity period. The subsidiary companies timely declared the pollutant discharge as required, carriedout pollutant discharge declaration monitoring and paid environmental taxes, ensured the effective operation of online monitoringfacilities for wastewater and waste gas, and entrusted third-party units to carry out manual environmental monitoring. At the sametime, the subsidiary companies prepared emergency plans for environmental emergencies in accordance with regulations, organizedexpert reviews and filed with local environmental protection departments as required, and carried out emergency drills forenvironmental emergencies as planned. In the first half of the year, the Company had no major environmental emergencies andpenalties.
2. Participate in public welfare undertakings and fulfill social responsibilities
The Company actively participates in social welfare activities, poverty alleviation and disaster relief, donations to schools, andfulfills corporate social responsibilities. In the first half of this year, the Company donated more than RMB 300,000 of funds andmaterials to various sectors of the society, focusing on charitable activities such as support and care for the elderly in villages andtowns, epidemic prevention, medical staff condolences, the purchase of poor agricultural and sideline products, and assistance to theneedy employees.
3. Insist on independent research and development and provide better energy-saving productsThe Company has always adhered to the business strategy of independent research and development and innovation leading. In thefirst half of the year, the Company submitted 130 patent applications and obtained 135 new patent authorizations, including 21invention patent authorizations. As of June 30, 2021, the Company has applied for a total of 2,093 patents, including 846 inventions,1,240 utility model patents, and 7 designs; a total of 1,530 authorized patents, including 278 inventions, 1,240 utility models, and 7designs. The Company continues to build core competitiveness and provide more energy-saving and environmentally friendlyproducts to the society.
4. Protect the rights and interests of shareholders and creditors
The Company ensured the steady development of its main business and improved overall operating performance. In the first half ofthe year, the Company achieved operating income of RMB 6.615 billion, a year-on-year increase of 49.51%; realized net profit ofRMB 1.369 billion, a year-on-year increase of 240.65%; net profit attributable to shareholders of listed companies was RMB 1.353billion, a year-on-year increase of 245.5%. The Company's equity distribution of 2020 had been completed, and the actual cashdividend amount (including tax) was RMB 307,069,211, accounting for 39.40% of the net profit attributable to shareholders of listedcompany in 2020, with continuing return to shareholders. In terms of creditor protection, the Company implemented a prudentfinancial policy, and all due loans were repaid on time, which protected the legitimate rights and interests of creditors.
5. Protect the rights and interests of employees
The Company insists on standardizing the employment behavior, strictly implements the national and local social securitymechanism, and purchases five insurances and one fund and other comprehensive welfare insurance for employees; it has atransparent and fair job promotion system; employees enjoy various national statutory holidays and other paid holidays; it activelyholds various cultural and sports activities for employees, more than 100 of which had been carried out in the first half of the year;strengthens occupational health monitoring and management to ensure the physical and mental health of employees; cares foremployees in difficulties. In the first half of the year, the Company provided assistance of over RMB 180,000 to 8 employees andtheir families who suffered accidents for resolving distress.
6. Social honor recognition
The Company has been listed in the "Top 50 Building Materials Enterprises in China", "Top 100 Industry Leaders in Shenzhen" and"Preferred Brand of Architectural Glass" in Door and Window Curtain Wall Industry for many years.CSG’s low-E coated glass andultra-thin electronic glass were awarded the title of Single Champion Product by the Ministry of Industry and InformationTechnology. In the first half of the year, CSG won the "Champion Enterprise Award" at the 6th China Manufacturing Power Forum,
known as the "Davos of Manufacturing", and was awarded the "Best Board of Directors for Investor Relations of Chinese MainBoard Listed Companies" in the 12th China Listed Companies Investor Relations Tianma Awards. In addition, CSG has 4subsidiaries recognized as national-level Specialized, Fined, Peculiar and Innovative "Little Giant" by the Ministry of Industry andInformation Technology, 2 subsidiaries won the "Government Quality Award", and one employee was granted "National May 1Labor Medal", and other major honors.
Section VI. Important Events
I. Commitments completed by the actual controllers, the shareholders, the related parties, thepurchasers and the Company during the report period and those that hadn’t been completedexecution by the end of the report period
√Applicable □ Not applicable
| Commitments | Promisee | Type of commitments | Content of commitments | Commit-ment date | Commit- ment term | Implement- ation |
| Commitments for Share Merger Reform | The original non-tradable shareholder Shenzhen International Holdings (SZ) Limited and Xin Tong Chan Industrial Development (Shenzhen) Co., Ltd. | Commitment of share reduction | The Company has implemented share merger reform in May 2006. Till June 2009, the share of the original non-tradable shareholders which holding over 5% total shares of the Company had all released. Therein, the original non-tradable shareholder Shenzhen International Holdings (SZ) Limited and Xin Tong Chan Industrial Development (Shenzhen) Co., Ltd. both are wholly-funded subsidiaries to Shenzhen International Holdings Limited (hereinafter Shenzhen International for short) listed in Hong Kong united stock exchange main board. Shenzhen International made commitment that it would strictly carry out related regulations of Securities Law, Administration of the Takeover of Listed Companies Procedures and Guiding Opinions on the Listed Companies’ Transfer of Original Shares Released from Trading Restrictions issued by CSRC during implementing share decreasingly-held plan and take information disclosure responsibility timely. | May 22, 2006 | N/A | By the end of the report period, the above shareholders of the Company had strictly carried out their promises. |
| Commitments in report of acquisition or equity change | Foresea Life Insurance Co., Ltd., Shenzhen Jushenghua Co., Ltd. and Chengtai Group Co., Ltd. | Commitment of horizontal competition, affiliate Transaction and capital | Foresea Life Insurance Co., Ltd., Shenzhen Jushenghua Co., Ltd. and Chengtai Group Co., Ltd. issued detailed report of equity change on 29 June 2015, in which, they undertook to keep independent from CSG in aspects | June 29, 2015 | During the period when Foresea Life remains | By the end of the report period, the above shareholders of the |
| occupation | of personnel, assets, finance, organization set-up and business as long as Foresea Life Insurance remained the largest shareholder of CSG. Meanwhile, they made commitment on regularizing related transaction and avoiding industry competition. | the largest shareholder of the Company | Company had strictly carried out their promises. | |||
| Commitments in assets reorganization | Not applicable | |||||
| Commitments in initial public offering or re-financing | Not applicable | |||||
| Equity incentive commitment | Not applicable | |||||
| Other commitments for medium and small shareholders | Not applicable | |||||
| Completed on time(Y/N) | Yes | |||||
| If the commitments arenot fulfilled on time, explain the reasons and the next work plan | Not applicable | |||||
Note: Shenzhen Jushenghua Co., Ltd. transferred its 86,633,447 unrestricted tradable A shares of CSG Group to its wholly-ownedsub-subsidiaryZhongshanRuntian Investment Co., Ltd. through agreement transfer on March 16, 2020. ZhongshanRuntianInvestment Co., Ltd. is obliged to continue to fulfill the commitments made by Shenzhen Jushenghua Co., Ltd. As of the end of thereport period, the above-mentioned shareholders had strictly fulfilled the relevant commitments.II.Particulars about non-operating fund of listed company occupied by controlling shareholderand other related parties
□Applicable √Not applicable
III. Illegal external guarantee
□Applicable √Not applicable
IV. Engaging and dismissing of CPAWhether the semi-annual report has been audited or not
□ Yes √ No
The semi-annual report of the Company has not been audited.V. Explanation from Board of Directors and Supervisory Committee for “Non-standard auditreport” of the period that issued by CPA
□ Applicable √ Not applicable
VI. Explanation from Board of Directors for “Non-standard audit report” of the previousyear
□ Applicable √ Not applicable
VII. Issues related to bankruptcy and reorganization
□ Applicable √ Not applicable
VIII.LawsuitsSignificant lawsuits and arbitrations
□ Applicable √ Not applicable
Other lawsuits
□ Applicable √ Not applicable
IX. Penalty and rectification
□ Applicable √ Not applicable
X. Integrity of the Company and its controlling shareholders and actual controllers
□ Applicable √ Not applicable
XI.Major related transaction
1. Related transaction with routine operation concerned
□ Applicable √ Not applicable
2. Related transaction with acquisition of assets or equity, sales of assets or equity concerned
□ Applicable √ Not applicable
3. Related transaction with jointly external investment concerned
□ Applicable √ Not applicable
4. Credits and liabilities with related parties
□ Applicable √ Not applicable
5. Transactions with related financial companies and financial companies controlled by the company
□ Applicable √ Not applicable
6. Other major related transaction
□ Applicable √ Not applicable
XII. Significant contracts and their implementation
1. Trusteeship, contract and leasing
(1) Trusteeship
□ Applicable √ Not applicable
(2) Contract
□ Applicable √ Not applicable
(3) Leasing
□ Applicable √ Not applicable
2. Major guarantees
√Applicable □ Not applicable
Unit: RMB 0,000
| Particulars about the external guarantee of the Company (Barring the guarantee for subsidiaries) | ||||||||
| Name of the Company guaranteed | Related Announcement disclosure date | Guarantee limit | Actual date of happening (Date of signing agreement) | Actual guarantee limit | Guarantee type | Guarantee term | Complete implementation or not | Guarantee for related party (Yes or no) |
| Guarantee of the Company for the subsidiaries | ||||||||
| Name of the Company guaranteed | Related Announcement | Guarantee limit | Actual date of happening | Actual guarantee limit | Guarantee type | Guarantee term | Complete implementation or | Guarantee for related |
| disclosure date | (Date of signing agreement) | not | party (Yes or no) | |||||
| Xianning CSG Photovoltaic Glass Co., Ltd. | 2016-8-16 | 30,000 | 2017-1-3 | 7,630 | Joint liability guarantee | 5 years | No | No |
| Xianning CSG Photovoltaic Glass Co., Ltd. | 2020-12-5 | 3,000 | 2021-2-7 | 2,285 | Joint liability guarantee | 1 year | No | No |
| Xianning CSG Photovoltaic Glass Co., Ltd. | 2020-12-19 | 5,000 | 2021-3-22 | Joint liability guarantee | 1 year | No | No | |
| Xianning CSG Glass Co., Ltd. | 2020-4-30 | 3,000 | 2020-7-10 | 2,000 | Joint liability guarantee | 1 year | No | No |
| Xianning CSG Glass Co., Ltd. | 2021-2-19 | 5,000 | Joint liability guarantee | 1 year | No | No | ||
| Yichang Nanbo Photoelectric Glass Co., Ltd. | 2021-2-19 | 1,824 | 2021-3-19 | 1,200 | Joint liability guarantee | 1 year | No | No |
| Yichang Nanbo Photoelectric Glass Co., Ltd. | 2020-5-23 | 2,000 | 2020-5-29 | 1,200 | Joint liability guarantee | 1 year | Yes | No |
| Yichang Nanbo Photoelectric Glass Co., Ltd. | 2020-3-6 | 5,500 | 2020-4-14 | Joint liability guarantee | 1 year | Yes | No | |
| Yichang Nanbo Photoelectric Glass Co., Ltd. | 2019-8-23 | 30,500 | 2019-12-17 | 3,391 | Joint liability guarantee | 2 years | No | No |
| Hebei CSG Glass Co., Ltd. | 2021-2-19 | 3,000 | Joint liability guarantee | 1 year | No | No | ||
| Hebei CSG Glass Co., Ltd. | 2021-2-19 | 5,000 | Joint liability guarantee | 1 year | No | No | ||
| Dongguan CSG Architectural Glass Co., Ltd. | 2021-6-29 | 5,000 | Joint liability guarantee | 2 years | No | No | ||
| Xianning CSG Glass Co., Ltd. | 2020-12-5 | 4,000 | 2021-2-7 | 2,000 | Joint liability guarantee | 1 year | No | No |
| Xianning CSG Glass Co., Ltd. | 2021-6-29 | 20,000 | Joint liability guarantee | 5 years | No | No | ||
| Chengdu CSG Glass Co., Ltd. | 2020-8-24 | 5,000 | 2020-8-24 | 4,500 | Joint liability guarantee | 1 year | No | No |
| Chengdu CSG Glass Co., Ltd. | 2021-2-19 | 5,000 | 2021-3-8 | Joint liability guarantee | 1 year | No | No | |
| Sichuan CSG Energy Conservation Glass Co., Ltd. | 2020-8-24 | 5,000 | 2020-8-24 | 4,500 | Joint liability guarantee | 1 year | No | No |
| Sichuan CSG Energy Conservation Glass Co., Ltd. | 2021-2-19 | 5,000 | 2021-3-9 | 5,000 | Joint liability guarantee | 1 year | No | No |
| Sichuan CSG Energy | 2021-6-8 | 5,000 | 2021-8-24 | Joint liability | 1 year | No | No |
| Conservation Glass Co., Ltd. | guarantee | |||||||
| Wujiang CSG Glass Co., Ltd. | 2021-2-19 | 10,000 | 2021-3-12 | 993 | Joint liability guarantee | 4 years | No | No |
| Wujiang CSG Glass Co., Ltd. | 2021-2-19 | 10,000 | 2021-3-19 | 780 | Joint liability guarantee | 1 year | No | No |
| Wujiang CSG Glass Co., Ltd. | 2020-12-5 | 10,000 | 2020-12-9 | 538 | Joint liability guarantee | 1 year | No | No |
| Wujiang CSG Glass Co., Ltd. | 2021-2-19 | 5,000 | 2021-3-8 | Joint liability guarantee | 1 year | No | No | |
| Wujiang CSG Glass Co., Ltd. | 2021-6-8 | 5,000 | Joint liability guarantee | 1 year | No | No | ||
| Wujiang CSG Glass Co., Ltd. | 2021-2-19 | 10,000 | 2021-3-26 | Joint liability guarantee | 1 year | No | No | |
| Dongguan CSG Architectural Glass Co., Ltd. | 2020-6-24 | 6,000 | 2020-8-18 | 2,000 | Joint liability guarantee | 1 year | Yes | No |
| Dongguan CSG Architectural Glass Co., Ltd. | 2020-9-22 | 20,000 | 2020-12-25 | 2,776 | Joint liability guarantee | 1 year | No | No |
| Dongguan CSG Architectural Glass Co., Ltd. | 2021-2-19 | 10,000 | 2020-12-9 | 5,000 | Joint liability guarantee | 1 year | No | No |
| Wujiang CSG East China Architectural Glass Co., Ltd. | 2020-12-5 | 10,000 | 2020-12-9 | Joint liability guarantee | 1 year | No | No | |
| Wujiang CSG East China Architectural Glass Co., Ltd. | 2021-2-19 | 7,000 | 2021-3-1 | 3,582 | Joint liability guarantee | 1 year | No | No |
| Wujiang CSG East China Architectural Glass Co., Ltd. | 2021-2-19 | 12,400 | 2021-5-19 | Joint liability guarantee | 5 years | No | No | |
| Wujiang CSG East China Architectural Glass Co., Ltd. | 2020-9-22 | 5,000 | Joint liability guarantee | 1 year | No | No | ||
| Dongguan CSG Solar Glass Co., Ltd. | 2019-10-28 | 10,000 | 2019-12-17 | 7,380 | Joint liability guarantee | 2 years | No | No |
| Dongguan CSG Solar Glass Co., Ltd. | 2021-2-19 | 5,000 | 2021-3-8 | 730 | Joint liability guarantee | 1 year | No | No |
| Dongguan CSG Solar Glass Co., Ltd. | 2021-2-19 | 7,288 | 2021-3-1 | Joint liability guarantee | 1 year | No | No | |
| Dongguan CSG Solar Glass Co., Ltd. | 2020-9-22 | 4,500 | 2020-11-11 | 919 | Joint liability guarantee | 3 years | No | No |
| Dongguan CSG Solar Glass Co., Ltd. | 2020-9-22 | 20,000 | 2020-12-25 | 2,000 | Joint liability guarantee | 1 year | No | No |
| Dongguan CSG Solar Glass Co., Ltd. | 2021-6-8 | 6,460 | Joint liability guarantee | 1 year | No | No |
| Dongguan CSG Solar Glass Co., Ltd. | 2020-4-30 | 5,000 | 2020-5-18 | Joint liability guarantee | 1 year | Yes | No | |
| Qingyuan CSG New Energy-Saving Materials Co.,Ltd. | 2019-12-10 | 4,330 | 2020-5-26 | 1,425 | Joint liability guarantee | 1 year | No | No |
| Qingyuan CSG New Energy-Saving Materials Co.,Ltd. | 2019-12-10 | 50,000 | 2020-4-26 | 16,487 | Joint liability guarantee | 5 years | No | No |
| Yichang CSG Display Co., Ltd. | 2020-5-23 | 3,040 | 2020-6-22 | 2,800 | Joint liability guarantee | 1 year | No | No |
| Yichang CSG Display Co., Ltd. | 2020-5-23 | 3,040 | 2020-5-29 | 3,000 | Joint liability guarantee | 1 year | Yes | No |
| Tianjin CSG Energy-Saving Glass Co., Ltd. | 2021-6-8 | 3,000 | Joint liability guarantee | 1 year | No | No | ||
| Tianjin CSG Energy-Saving Glass Co., Ltd. | 2021-2-19 | 5,000 | 2021-3-30 | 3,447 | Joint liability guarantee | 1 year | No | No |
| Tianjin CSG Energy-Saving Glass Co., Ltd. | 2021-2-19 | 7,000 | 2021-3-23 | 4,684 | Joint liability guarantee | 4 years | No | No |
| Tianjin CSG Energy-Saving Glass Co., Ltd. | 2021-6-29 | 2,000 | Joint liability guarantee | 1 year | No | No | ||
| Anhui CSG New Quartz Material Co., Ltd. | 2021-6-29 | 9,000 | Joint liability guarantee | 5 years | No | No | ||
| Zhaoqing CSG EnergySaving GlassCo., Ltd. | 2020-9-22 | 34,000 | 2020-9-25 | 14,655 | Joint liability guarantee | 5 years | No | No |
| China Southern Glass (Hong Kong) Limited | 2020-2-25 | 48,000 | 2020-4-4 | 6,312 | Joint liability guarantee | 1 year | Yes | No |
| Dongguan CSG Architectural Glass Co., Ltd. | 2021-6-29 | 2021-7-1 | 1,608 | Joint liability guarantee | 1 year | No | No | |
| Dongguan CSG Solar Glass Co., Ltd. | 2021-6-29 | 2021-7-1 | Joint liability guarantee | 1 year | No | No | ||
| Dongguan CSG PV-tech Co., Ltd. | 2021-6-29 | 2021-7-1 | 982 | Joint liability guarantee | 1 year | No | No | |
| Qingyuan CSG New Energy-Saving Materials Co.,Ltd. | 2021-6-29 | 2021-7-1 | 314 | Joint liability guarantee | 1 year | No | No | |
| Anhui CSG New Energy Materials Technology Co., Ltd. | 2021-2-19 | 2021-4-12 | 11,204 | Joint liability guarantee | 1 year | No | No | |
| Wujiang CSG Glass Co., Ltd. | 2021-2-19 | 2021-3-26 | Joint liability | 1 year | No | No |
| guarantee | ||||||||
| Chengdu CSG Glass Co., Ltd. | 2021-6-29 | 2021-7-1 | Joint liability guarantee | 1 year | No | No | ||
| Sichuan CSG Energy Conservation Glass Co., Ltd. | 2021-6-29 | 2021-7-1 | 21 | Joint liability guarantee | 1 year | No | No | |
| Xianning CSG Glass Co., Ltd. | 2021-6-29 | 2021-7-1 | Joint liability guarantee | 1 year | No | No | ||
| Xianning CSG Glass Co., Ltd. | 2021-6-29 | 2021-7-1 | 121 | Joint liability guarantee | 1 year | No | No | |
| Wujiang CSG Glass Co., Ltd. | 2021-6-29 | 2021-7-1 | 567 | Joint liability guarantee | 1 year | No | No | |
| Tianjin CSG Energy-Saving Glass Co., Ltd. | 2021-6-29 | 2021-7-1 | 737 | Joint liability guarantee | 1 year | No | No | |
| Xianning CSG Glass Co., Ltd. | 2020-2-25 | 2020-6-24 | 500 | Joint liability guarantee | 1 year | No | No | |
| Zhaoqing CSG Energy-Saving Glass Co., Ltd. | 2021-6-29 | Joint liability guarantee | 1 year | No | No | |||
| Total amount of approving guarantee for subsidiaries in report period (B1) | 216,972 | Total amount of actual occurred guarantee for subsidiaries in report period (B2) | 45,255 | |||||
| Total amount of approved guarantee for subsidiaries at the end of report period (B3) | 425,342 | Total balance of actual guarantee for subsidiaries at the end of report period (B4) | 116,756 | |||||
| Total amount of guarantee of the Company (total of three abovementioned guarantee) | ||||||||
| Total amount of approving guarantee in report period (A1+B1+C1) | 216,972 | Total amount of actual occurred guarantee in report period (A2+B2+C2) | 45,255 | |||||
| Total amount of approved guarantee at the end of report period (A3+B3+C3) | 425,342 | Total balance of actual guarantee at the end of report period (A4+B4+C4) | 116,756 | |||||
| The proportion of the total amount of actual guarantee in the net assets of the Company (that is A4+ B4+C4) | 10.37% | |||||||
| Including: | ||||||||
| Amount of guarantee for shareholders, actual controller and its related parties(D) | 0 | |||||||
| The debts guarantee amount provided for the guaranteed parties whose assets-liability ratio exceed 70% directly or indirectly(E) | 0 |
| Proportion of total amount of guarantee in net assets of the Company exceed 50%(F) | 0 |
| Total amount of the aforesaid three guarantees(D+E+F) | 0 |
| Explanations on possibly bearing joint and several liquidating responsibilities for undue guarantees (if any) | N/A |
| Explanations on external guarantee against regulated procedures(if any) | N/A |
| Explanations on Guarantee of the Company for the subsidiaries | During the report period, the total amount of guarantee approved by the Company was RMB 2,169.72 million; the Company and its wholly-owned subsidiary, Yichang CSG Polysilicon Co., Ltd., jointly guaranteed Dongguan CSG PV-tech Co., Ltd. The Company carried out RMB 300 million of BillPool business, and The Company and its holding subsidiaries can use Maximum Amount Pledge, General Pledge, Deposit Pledge, Bill pledge, Guarantee Pledge and other guarantee methods for the establishment and use of Bill Pool. |
3. Entrusted Financing
□Applicable √Not applicable
4. Major contracts for daily operation
√Applicable □ Not applicable
| Name of company signing the contract | Name of the other party signing the contract | Subject matter | Total contract amount | Progress of contract performance | Amount of sales revenue recognized in the current period and accumulated | Collection of accounts receivable |
| Wujiang CSG Glass Co., Ltd., Dongguan CSG Solar Glass Co., Ltd. | LONGi Solar Technology Ltd., Zhejiang LONGi Solar Technology Ltd., TaizhouLONGi Solar Technology Ltd., Yinchuan LONGi Solar Technology Ltd.,ChuzhouLONGi Solar Technology Ltd., Datong LONGi Solar Technology Ltd., LONGi (H.K.) Trading | Photovoltaic glass | RMB 6,500 million (tax included) | In progress | The recognized income was RMB 153 million in this period, and the accumulated recognized income was RMB 287.36 million. | RMB 257 million |
Significant difference between the progress of the major contract and the contract agreement and affects more than 30% of thecontract amount
□Applicable √Not applicable
5. Other major contracts
□Applicable √Not applicable
XIII. Statement on other important matters
√Applicable □ Not applicable
1. Ultra-short-term financing bills
On June 15, 2020, the Company the third extraordinary general meeting of shareholders 2020 deliberated and approved the proposalon application for registration and issuance of ultra-short-term financing bills and medium-term notes, which agreed that theCompany should register and issue ultra-short-term financing billswith a registered amount not exceeding 1.5 billion yuan (the limitis not subject to the limit of 40% of net assets).With the period of validity of the quota not longer than two years, suchultra-short-term financing bills will be issued by installments in accordance with the actual capital needs of the Company and thesituation of inter-bank market funds. On September 4, 2020, the NAFMII held its 102nd registration meeting in 2020 and decided toaccept the registration of ultra-short-term financing bills with a total of 1.5 billion yuan and a validity period of two years.
2. Medium-term notes
On April 15, 2016, the Shareholders’ General Meeting of 2015 of CSG deliberated and approved the proposal of application forregistration and issuance of medium-term notes with total amount of RMB 0.8 billion, which could be issued by stages within periodof validity of the registration according to the Company’s actual demands for funds and the status of inter-bank funds. On 2 March2018, National Association of Financial Market Institutional Investors (NAFMII) held the 14th registration meeting of 2018, inwhich NAFMII decided to accept the registration of the Company’s medium-term notes, amounting to RMB 0.8 billion and valid fortwo years. Shanghai Pudong Development Bank Co., Ltd. and China CITIC Bank Corporation Limitedwere joint lead underwritersof these medium-term notes which could be issued by stages within period of validity of the registration.On May 4, 2018, thecompany issued the first medium-term notes with a total amount of 800 million yuan and a term of three years. The issue rate was7%, and the redemption date was May 4, 2021.On June 15, 2020, the Third Extraordinary Shareholders’ General Meeting 2020 of CSG deliberated and approved the proposal onapplication for registration and issuance of ultra-short-term financing bills and medium-term notes, which agreed that the Companyshould register and issue medium-term noteswith a registered amount not exceeding 1.5 billion yuan. With the period of validity ofthe quota not longer than two years, such ultra-short-term financing bills will be issued by installments in accordance with the actualcapital needs of the Company and the situation of inter-bank market funds. On September 4, 2020, the NAFMII held the 102nd
registration meeting in 2020 and decided to accept the company's registration of medium-term notes with a total of 1.5 billion yuanand a validity period of two years.For details, please refer to www.chinabond.com.cn and www.chinamoney.com.cn.
3. Public issuance of corporate bonds
On March 2, 2017, the 2nd Extraordinary General Meeting of Shareholders in 2017 reviewed and approved ―the Proposal on thePublic Issuance of Corporate Bonds for Qualified Investors". On February 27, 2019, the First Extraordinary General Meeting ofShareholders in 2019 The ―Proposal on Extending the Validity Period of the Shareholders' Meeting for the Public Offering ofCorporate Bonds to Qualified Investors‖ agreed to issue corporate bonds with a total issue of no more than RMB 2 billion and a termof no more than 10 years.On June 26, 2019, the Company received the ―Approval of Approving CSG Holding Co., Ltd. to IssueCorporate Bonds to Qualified Investors‖ issued by China Securities Regulatory Commission (ZJXK [2019] No. 1140). On March 24,2020 and March 25, 2020, the Company issued the first batch of corporate bonds with total amount of RMB 2 billion and valid termof 3 years at the issuance rate of 6%, which will be redeemed on March 25, 2023(fordetails, please refer to "Section IX Bonds").On March 12, 2020, the First Extraordinary General Meeting of Shareholders in 2020 reviewed and approved ―the Proposal on thePublic Issuance of Corporate Bonds for Qualified Investors", agreed to issue corporate bonds with a total issue of no more than RMB
1.8 billion and a term of no more than 10 years.On April 22, 2020, the Company received the ―Approval of Approving CSG HoldingCo., Ltd. to Issue Corporate Bonds to Qualified Investors‖ issued by China Securities Regulatory Commission (ZJXK[2020] No.
784).
4. Non-public issuance of A shares
The interim meeting of the 8th board of directors of the Company held on March 5, 2020 deliberated and approved the relatedproposals of non-public issuance of A shares, and agreed the Company to issue A shares privately. The proposals were deliberatedand approved by the 2nd Extraordinary General Meeting of Shareholders of 2020 which held on April 16, 2020. In May 2020, theCompany received the first feedback notice on the examination of administrative licensing projects of China Securities RegulatoryCommission (No. 200819) issued by the China Securities Regulatory Commission, and published ―Announcement on Reply to theFeedback of Application Documents For Non-public Offering of A shares‖ and ―Announcement on the Revised Reply to theFeedback of Application Documents For Non-public Offering of A shares‖ on June 8, 2020 and June 29, 2020respectively. On June 5,2020, the Company held an interim meeting of the 9th board of directors, deliberated and approved the relevant proposals onadjusting the Company's non-public issuance of Ashares. On July 6, 2020, the Issuance Audit Committee of China SecuritiesRegulatory Commission reviewed the Company's application for non-public issuance of A shares. According to the audit results, theCompany's application for non-public issuance of A shares was approved. On July 22, 2020, the Company received the ―Reply on theApproval of Non-publicIssuanceof Shares of CSG‖ (ZJXK [2020] No. 1491) issued by China Securities Regulatory Commission.After obtaining the approval, the Company actively worked with intermediaries to promote various work concerning the non-publicissuance of A shares. However, in view of changes in many factors such as the capital market environment, industrial development,the Company’s market value performance and the timing of equity financing, the Company did not implement this non-publicissuance of A shares within the validity period of the approval document. The approval for the non-public issuance of A sharesexpired automatically. For details, please refer to the "Announcement on the Expiration of the Approval for the Non-public Issuanceof A Shares" (Announcement No.: 2021-034) disclosed by the Company on July 15, 2021.
For details, please refer toJuchao website (www.cninfo.com.cn).
XIV. Significant events of subsidiaries of the Company
□ Applicable √ Not applicable
Section VII. Changes in Shares and Particulars about Shareholders
I. Changes in Share Capital
1. Changes in Share Capital
Unit: Share
| Before the Change(Note) | Increase/Decrease in the Change (+, -) | After the Change | |||||||
| Amount | Proportion (%) | New shares issued | Bonus shares | Capitalization of public reserve | Others | Subtotal | Amount | Proportion (%) | |
| I. Restricted shares | 3,323,978 | 0.11% | 1,107,993 | 1,107,993 | 4,431,971 | 0.14% | |||
| 1. State-owned shares | |||||||||
| 2. State-owned legal person’s shares | |||||||||
| 3. Other domestic shares | 3,323,978 | 0.11% | 1,107,993 | 1,107,993 | 4,431,971 | 0.14% | |||
| Including: Domestic legal person’s shares | |||||||||
| Domestic natural person’s shares | 3,323,978 | 0.11% | 1,107,993 | 1,107,993 | 4,431,971 | 0.14% | |||
| 4. Foreign shares | |||||||||
| Including: Foreign legal person’s shares | |||||||||
| Foreign natural person’s shares | |||||||||
| II. Unrestricted shares | 3,067,368,129 | 99.89% | -1,107,993 | -1,107,993 | 3,066,260,136 | 99.86% | |||
| 1. RMB Ordinary shares | 1,957,999,069 | 63.76% | -1,107,993 | -1,107,993 | 1,956,891,076 | 63.73% | |||
| 2. Domestically listed foreign shares | 1,109,369,060 | 36.13% | 1,109,369,060 | 36.13% | |||||
| 3. Overseas listed foreign shares | |||||||||
| 4. Others | |||||||||
| III.Total shares | 3,070,692,107 | 100% | 3,070,692,107 | 100% | |||||
Reason for equity changes
√Applicable □Not applicable
During the report period, China securities registration and clearing Co., Ltd. adjustedadjusted the locked-up shares of seniormanagement in accordance with regulations, and the Company’s restricted shares and unrestricted shares changed accordingly.Approval on equity changes
□Applicable √Not applicable
Transfer of ownership for equity changes
□Applicable √Not applicable
Implementation progress of share buyback
□Applicable √Not applicable
Implementation progress of share buyback reduction through centralized bidding
□Applicable √Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to commonshareholders of Company in the latest year and period
□Applicable √Not applicable
Other information necessary to be disclosed or need to be disclosed under requirement from security regulators
□Applicable √ Not applicable
2. Changes of restricted shares
√Applicable □ Not applicable
Unit: Share
| Shareholders’ name | Number of shares restricted at the beginning of the period(Note 1) | Number of shares released in the Period | Number of shares repurchased in the period(Note2) | Number of new shares restricted in the Period | Number of shares restricted at the end of the Period | Reason for restriction | Released date |
| Chen Lin | 912,974 | 304,325 | 1,217,299 | Executive lockup stocks of1,217,299shares | Releasing of executive lockup stocks will be implemented according to relevant policies. | ||
| Wang Jian | 569,250 | 189,750 | 759,000 | Executive lockup stocks of759,000 shares | Releasing of executive lockup stocks will be implemented according to relevant policies. | ||
| Lu Wenhui | 684,730 | 228,243 | 912,973 | Executive lockup stocks of912,973shares | Releasing of executive lockup stocks will be implemented according to relevant policies. | ||
| He Jin | 504,900 | 168,300 | 673,200 | Executive lockup stocks of673,200shares | Releasing of executive lockup stocks will be implemented according to relevant policies. | ||
| Yang Xinyu | 652,124 | 217,375 | 869,499 | Executive lockup stocks of869,499shares | Releasing of executive lockup stocks will be implemented according to |
| relevant policies. | |||||||
| Total | 3,323,978 | 1,107,993 | 4,431,971 | -- | -- |
Note:The change in restricted shares during the reporting period was caused by China Securities Depository and Clearing Co., Ltd.'sadjustment of the locked-up shares of senior executives in accordance with regulations.II. Issuance and listing of Securities
□Applicable √ Not applicable
III.Amount of shareholders of the Company and particulars about shares holding
Unit: share
| Total amount of shareholders at the end of the report period | 111,003 | Total amount of the preferred shareholders who have resumed the voting right at end of report period (if applicable) | 0 | ||||||||
| Shareholder with above 5% shares held or top ten shareholders | |||||||||||
| Full name of Shareholders | Nature of shareholder | Proportion of shares held (%) | Total shares held at the end of report period | Changes in report period | Amount of restricted shares held | Amount of un-restricted shares held | Number of share pledged/frozen | ||||
| Share status | Amount | ||||||||||
| Foresea Life Insurance Co., Ltd. – HailiNiannian | Domestic non state-owned legal person | 15.19% | 466,386,874 | 466,386,874 | |||||||
| Hong Kong Securities Clearing Company Limited | Foreign legal person | 5.00% | 153,391,478 | 69,098,831 | 153,391,478 | ||||||
| Foresea Life Insurance Co., Ltd. – Universal Insurance Products | Domestic non state-owned legal person | 3.86% | 118,425,007 | 118,425,007 | |||||||
| Zhongshanruntian Investment Co., Ltd. | Domestic non state-owned legal person | 2.82% | 86,633,447 | 86,633,447 | Pledged | 86,630,000 | |||||
| Foresea Life Insurance Co., Ltd. – Own Fund | Domestic non state-owned legal person | 2.11% | 64,765,161 | 64,765,161 | |||||||
| Central Huijin Asset Management Ltd. | State-owned legal person | 1.89% | 57,915,488 | 57,915,488 | |||||||
| China Galaxy International Securities (Hong Kong) Co., Limited | Foreign legal person | 1.35% | 41,349,778 | 41,349,778 | |||||||
| China Merchants Securities (HK) | State-owned | 1.15% | 35,249,442 | 5,812 | 35,249,442 | ||||||
| Co., Limited | legal person | ||||||||||
| Shenzhen International Holdings (SZ) Limited | State-owned legal person | 0.70% | 21,629,946 | -7,465,054 | 21,629,946 | ||||||
| VANGUARD EMERGING MARKETS STOCK INDEX FUND | Foreign legal person | 0.69% | 21,085,697 | 1,500,700 | 21,085,697 | ||||||
| Strategic investors or general legal person becomes top 10 shareholders due to shares issued (if applicable) | N/A | ||||||||||
| Explanation on associated relationship among the aforesaid shareholders | Among shareholders as listed above, Foresea Life Insurance Co., Ltd.-HailiNiannian, Foresea Life Insurance Co., Ltd.-Universal Insurance Products, Foresea Life Insurance Co., Ltd.-Own Fund are all held by Foresea Life Insurance Co., Ltd. Shenzhen Jushenghua Co., Ltd. is a related legal person of Foresea Life Insurance Co., Ltd. and Chengtai Group Co., Ltd., another related legal person of Foresea Life Insurance Co., Ltd, which held 40,187,904shares via China Galaxy International Securities (Hong Kong) Co., Limited. Except for the above-mentioned shareholders, it is unknown whether other shareholders belong to related party or have associated relationship regulated by the Management Regulation of Information Disclosure on Change of Shareholding for Listed Companies. | ||||||||||
| Explanation of the above-mentioned shareholders' entrusted/being entrusted voting rights and waiver of voting rights | N/A | ||||||||||
| Special instructions on the existence of special repurchase account among the top 10 shareholders (if applicable) | N/A | ||||||||||
| Particular about top ten shareholders with un-restrict shares held | |||||||||||
| Shareholders’ name | Amount of un-restrict shares held at year-end | Type of shares | |||||||||
| Type | Amount | ||||||||||
| Foresea Life Insurance Co., Ltd. – HailiNiannian | 466,386,874 | RMB ordinary shares | 466,386,874 | ||||||||
| Hong Kong Securities Clearing Company Limited | 153,391,478 | RMB ordinary shares | 153,391,478 | ||||||||
| Foresea Life Insurance Co., Ltd. – Universal Insurance Products | 118,425,007 | RMB ordinary shares | 118,425,007 | ||||||||
| ZhongshanruntianInvestment Co., Ltd. | 86,633,447 | RMB ordinary shares | 86,633,447 | ||||||||
| Foresea Life Insurance Co., Ltd. – Own Fund | 64,765,161 | RMB ordinary shares | 64,765,161 | ||||||||
| Central Huijin Asset Management Ltd. | 57,915,488 | RMB ordinary shares | 57,915,488 | ||||||||
| China Galaxy International Securities (Hong Kong) Co., Limited | 41,349,778 | Domestically listed foreign shares | 41,349,778 | ||||||||
| China Merchants Securities (HK) Co., Limited | 35,249,442 | Domestically listed foreign shares | 35,249,442 |
| Shenzhen International Holdings (SZ) Limited | 21,629,946 | RMB ordinary shares | 21,629,946 |
| VANGUARD EMERGING MARKETS STOCK INDEX FUND | 21,085,697 | Domestically listed foreign shares | 21,085,697 |
| Explanation of the related relationship or concerted action between the top 10 ordinary shareholders of unrestricted shares, and between the top 10 ordinary shareholders of unrestricted shares and the top 10 ordinary shareholders | Among shareholders as listed above, Foresea Life Insurance Co., Ltd.-HailiNiannian, Foresea Life Insurance Co., Ltd.-Universal Insurance Products, Foresea Life Insurance Co., Ltd.-Own Fund are all held by Foresea Life Insurance Co., Ltd. Shenzhen Jushenghua Co., Ltd. is a related legal person of Foresea Life Insurance Co., Ltd. and Chengtai Group Co., Ltd., another related legal person of Foresea Life Insurance Co., Ltd, which held 40,187,904 shares via China Galaxy International Securities (Hong Kong) Co., Limited. Except for the above-mentioned shareholders, it is unknown whether other shareholders belong to related party or have associated relationship regulated by the Management Regulation of Information Disclosure on Change of Shareholding for Listed Companies. | ||
| Description of the top 10 ordinary shareholders participating in margin trading and securities lending business shareholders (if applicable) | N/A | ||
Whether the top ten shareholders or top ten shareholders with un-restricted shares carried out buy back deals in the report period
□Yes √ No
IV. Changes in the shareholding of directors, supervisors and senior executives
□Applicable √ Not applicable
The Company’s directors, supervisors and senior executives did not change their shareholdings during the report period. For details,please refer to the 2020 annual report.
V. Changes of controlling shareholder or actual controllerChanges of controlling shareholders in the report period
□Applicable √ Not applicable
Changes of actual controller in the report period
□Applicable √ Not applicable
Section VIII. Preferred shares
□Applicable √ Not applicable
There were no preferred shares in the Company during the report period.
Section IX. Bonds
√Applicable □ Not applicable
I. Enterprise bonds
□Applicable √ Not applicable
The Company had no enterprise bonds during the report period.
II. Corporate bonds
√Applicable □ Not applicable
1. Basic information about corporate bonds
| Name | Short name | Bond code | Issue date | value date | Maturity date | Bond balance (RMB 0,000) | Interest rate | Way of repayment of principal and interest |
| CSG Holding Co., Ltd. Public issue of corporate bonds to qualified investors in 2020 (phase I) | 20 CSG 01 | 149079 | 2020-3-24 to 2020-3-25 | 2023-3-25 | 2023-3-25 | 200,000 | 6% | Use simple interest to calculate the annual interest, excluding compound interest. Interest is paid once a year, principal is repaid once due, and the last installment of interest is paid together with the principal. |
| Appropriate arrangements for investors (if applicable) | Corporate bonds shall be publicly issued to qualified institutional investors who have opened qualified A-share securities accounts in the Shenzhen branch of China Securities Registration and Clearing Co., Ltd., in accordance with the provisions of the "Measures For The Administration Of Corporate Bond Issuance And Trading". | |||||||
| Applicable trading mechanism | Centralized bidding transactions and negotiated block transactions. | |||||||
| Whether there are risks (if any) of terminating listing transactions and countermeasures | No | |||||||
Overdue bonds
□Applicable √ Not applicable
2. Triggering and implementation of issuer or investor option clauses and investor protection clauses
□Applicable √ Not applicable
3. Adjustment of credit rating results during the report period
□Applicable √ Not applicable
4. The implementation and changes of guarantees, debt repayment plans and other debt repaymentsafeguard measures during the reporting period, and their impact on the rights and interests of bondinvestors
√Applicable □ Not applicable
During the report period, the guarantee situation of ―20 CSG 01‖ and other debt repayment safeguard measures of the debt repaymentplan remained unchanged, which were consistent with the relevant commitments in the prospectus. The basic information is asfollows:
I. Guarantee situationThere is no guarantee for this bond.II. Debt repayment plan"20 CSG 01" will pay interest once a year during its duration, and the principal will be repaid once upon maturity. The interest of thelast period will be paid together with the repayment of the principal. The payment date of "20 CSG 01" is March 25 of each yearfrom 2021 to 2023, and the payment date is March 25, 2023 (in case of a statutory holiday or rest day, it will be postponed to the firsttrading day thereafter).
Ⅲ. Repayment safeguardsThe guarantee measures for debt repaymentinclude confirming the specialized departments and personnelarranging the funds forrepayment, strictly implementing the use of the raised funds, giving full play to the role of bond trustee, setting the rules forbondholders' meetings, strictly fulfilling the obligation of information disclosure, to fully and effectively protect the interests ofbondholders.III. Non-financial corporate debt financing instrumentsThe Company had no non-financial corporate debt financing instruments during the report period.
IV. Convertible corporate bonds
The Company had no convertible corporate bonds during the report period.
V. The loss within the scope of consolidated statements in the reporting period exceeded 10% of the netassets at the end of the previous year
□Applicable √ Not applicable
VI. Main accounting data and financial indicators of the company in recent two years by the end of thereporting period
RMB 0,000
| Item | At the end of the report period | At the end of the previous year | Increase and decrease at the end of the report compared with the end of the previous year |
| Current ratio | 166% | 121% | 45% |
| Asset-liability ratio | 37% | 41% | -4% |
| Quick ratio | 131% | 100% | 31% |
| The report period | The same period of the previous year | Increase and decrease in the report period over the same period of last year | |
| Net profit after deducting non-recurring gains and losses | 1,329,814,528 | 358,644,297 | 270.79% |
| EBITDA total debt ratio | 32% | 12% | 20% |
| Interest coverage ratio | 16.7 | 4.06 | 311.33% |
| Cash interest coverage ratio | 19.79 | 6.61 | 199.39% |
| EBITDA interest coverage ratio | 21.35 | 6.97 | 206.31% |
| Loan repayment rate | 100% | 100% | 0.00% |
| Interest coverage ratio | 100% | 100% | 0.00% |
Section X. Financial Report
(I) Auditors’ ReportWhether the Semi-annual Report has been audited or not
□ Yes √ No
The Company's Semi-annual Report has not been audited.(II) Financial StatementsAll figures in the Notes to the Financial Statements are in RMB.
1. Consolidated Balance Sheet
Prepared by CSG Holding Co., Ltd.
Unit: RMB
| Item | June 30, 2021 | December 31,2020 |
| Current assets | ||
| Cash at bank and on hand | 1,649,433,538 | 2,125,788,903 |
| Notes receivable | 183,242,770 | 207,966,892 |
| Accounts receivable | 842,381,600 | 681,467,133 |
| Receivables financing | 444,025,966 | 382,527,782 |
| Trading financial assets | 382,000,000 | |
| Advances to suppliers | 141,433,334 | 85,928,641 |
| Other receivables | 205,710,766 | 200,969,854 |
| Of which: interest receivable | 112,611 | |
| Inventories | 1,054,226,305 | 815,156,318 |
| Other current assets | 114,744,303 | 140,031,544 |
| Total current assets | 5,017,198,582 | 4,639,837,067 |
| Non-current assets | ||
| Investment property | 383,084,500 | 383,084,500 |
| Fixed assets | 8,742,434,064 | 9,145,644,569 |
| Construction in progress | 2,290,839,174 | 1,893,380,611 |
| Right of use assets | 9,298,566 | |
| Intangible assets | 1,172,586,946 | 1,139,718,255 |
| Development expenditure | 58,155,596 | 49,153,407 |
| Goodwill | 233,375,693 | 233,375,693 |
| Long-term prepaid expenses | 577,769 | 10,381,937 |
| Deferred tax assets | 203,555,196 | 194,979,414 |
| Other non-current assets | 451,995,544 | 193,359,445 |
| Total non-current assets | 13,545,903,048 | 13,243,077,831 |
| Total assets | 18,563,101,630 | 17,882,914,898 |
| Current liabilities | ||
| Short-term borrowings | 312,560,100 | 352,895,571 |
| Notes payable | 304,710,352 | 144,851,192 |
| Accounts payable | 1,242,148,009 | 1,237,833,051 |
| Contract liabilities | 273,225,477 | 296,776,624 |
| Employee benefits payable | 255,406,964 | 342,352,166 |
| Taxes payable | 229,367,695 | 194,921,071 |
| Other payables | 233,274,223 | 287,332,992 |
| Of which: interest payable | 34,601,072 | 132,133,902 |
| Non-current liabilities due within one year | 135,934,639 | 927,531,709 |
| Other current liabilities | 32,329,042 | 34,586,292 |
| Total current liabilities | 3,018,956,501 | 3,819,080,668 |
| Non-current liabilities | ||
| Long-term borrowings | 1,190,557,017 | 853,253,983 |
| Bonds payable | 1,995,284,179 | 1,994,020,348 |
| Deferred income | 574,616,481 | 498,056,081 |
| Deferred tax liabilities | 105,738,792 | 102,619,932 |
| Total non-current liabilities | 3,866,196,469 | 3,447,950,344 |
| Total liabilities | 6,885,152,970 | 7,267,031,012 |
| Shareholders’ equity | ||
| Share capital | 3,070,692,107 | 3,070,692,107 |
| Capital surplus | 596,997,085 | 596,997,085 |
| Other comprehensive income | 163,139,310 | 161,816,819 |
| Special reserve | 9,102,592 | 10,269,002 |
| Surplus reserve | 1,036,948,422 | 1,036,948,422 |
| Undistributed profits | 6,381,714,666 | 5,336,266,412 |
| Total equity attributable to shareholders of parent company | 11,258,594,182 | 10,212,989,847 |
| Minority shareholders' equity | 419,354,478 | 402,894,039 |
| Total shareholders' equity | 11,677,948,660 | 10,615,883,886 |
| Total liabilities and shareholders' equity | 18,563,101,630 | 17,882,914,898 |
Legal Representative:Chen Lin Principal in charge of accounting:Wang JianPrincipal of the financialdepartment:WangWenxin
2. Balance Sheet of the Parent Company
Unit: RMB
| Item | June 30, 2021 | December 31,2020 |
| Current assets | ||
| Cash at bank and on hand | 299,216,278 | 1,072,875,571 |
| Trading financial assets | 340,000,000 | |
| Advances to suppliers | 1,656,513 | 1,650,184 |
| Other receivables | 3,402,565,195 | 3,803,908,369 |
| Of which: interest receivable | 112,611 | |
| Of which: dividends receivable | 249,087,257 | |
| Other current assets | 66,321 | |
| Total current assets | 4,043,437,986 | 4,878,500,445 |
| Non-current assets | ||
| Long-term equity investments | 6,174,306,870 | 5,844,507,870 |
| Fixed assets | 12,944,175 | 19,769,193 |
| Intangible assets | 348,308 | 140,836 |
| Other non-current assets | 86,071,233 | 4,546,275 |
| Total non-current assets | 6,273,670,586 | 5,868,964,174 |
| Total assets | 10,317,108,572 | 10,747,464,619 |
| Current liabilities | ||
| Short-term borrowings | 114,000,000 | 49,800,000 |
| Accounts payable | 1,551,761 | 249,721 |
| Employee benefits payable | 32,838,881 | 46,504,458 |
| Taxes payable | 6,685,127 | 9,457,159 |
| Other payables | 857,545,717 | 1,002,135,702 |
| Of which: interest payable | 33,556,927 | 131,513,019 |
| Non-current liabilities due within one year | 800,000,000 | |
| Total current liabilities | 1,012,621,486 | 1,908,147,040 |
| Non-current liabilities | ||
| Long-term borrowings | 892,500,000 | 700,000,000 |
| Bonds payable | 1,995,284,179 | 1,994,020,348 |
| Deferred income | 172,902,300 | 180,496,249 |
| Total non-current liabilities | 3,060,686,479 | 2,874,516,597 |
| Total liabilities | 4,073,307,965 | 4,782,663,637 |
| Shareholders’ equity | ||
| Share capital | 3,070,692,107 | 3,070,692,107 |
| Capital surplus | 741,824,399 | 741,824,399 |
| Surplus reserve | 1,051,493,782 | 1,051,493,782 |
| Undistributed profits | 1,379,790,319 | 1,100,790,694 |
| Total shareholders' equity | 6,243,800,607 | 5,964,800,982 |
| Total liabilities and shareholders' equity | 10,317,108,572 | 10,747,464,619 |
3. Consolidated Income Statement
Unit: RMB
| Item | Half year of 2021 | Half year of 2020 |
| I. Total revenue | 6,614,802,538 | 4,424,221,349 |
| Of which:Business income | 6,614,802,538 | 4,424,221,349 |
| II. Total business cost | 4,992,720,799 | 3,967,771,208 |
| Of which:Business cost | 4,126,627,145 | 3,159,567,031 |
| Tax and surcharge | 73,966,054 | 52,338,392 |
| Sales expenses | 125,326,015 | 161,639,534 |
| Administrative expenses | 354,914,704 | 317,419,407 |
| R&D expenses | 224,886,882 | 145,063,647 |
| Financial expenses | 86,999,999 | 131,743,197 |
| Of which: interest expense | 101,970,419 | 152,178,964 |
| Interest income | 20,024,847 | 24,931,363 |
| Plus: Other income | 36,553,804 | 48,009,326 |
| Investment income (―- ―for loss) | 3,672,330 | |
| Credit impairment loss (―- ―for loss) | -2,524,048 | -2,961,920 |
| Asset impairment loss (―- ―for loss) | -26,753,082 | 154,053 |
| Income on disposal assets (―- ―for loss) | 137,638 | -342,005 |
| III. Operational profit (―- ―for loss) | 1,633,168,381 | 501,309,595 |
| Plus: non-operational income | 7,551,798 | 2,218,131 |
| Less: non-operational expenditure | 16,461,985 | 17,535,553 |
| IV. Total profit (―- ―for loss) | 1,624,258,194 | 485,992,173 |
| Less: Income tax expenses | 255,280,290 | 84,115,208 |
| V. Net profit (―- ―for net loss) | 1,368,977,904 | 401,876,965 |
| (I) Classification by business continuity | ||
| 1. Net profit from continuing operations (―-‖ for net loss) | 1,368,977,904 | 401,876,965 |
| (II) Classification by ownership | ||
| 1. Equity attributable to shareholders of parent company | 1,352,517,465 | 391,466,723 |
| 2.Minority shareholder gains and losses | 16,460,439 | 10,410,242 |
| VI. Other comprehensive income net after tax | 1,322,491 | 1,366,772 |
| Other comprehensive income net after tax attributable to shareholders of parent company | 1,322,491 | 1,366,772 |
| (I) Other comprehensive income that will be reclassified into profit and loss | 1,322,491 | 1,366,772 |
| 1.Differences on translation of foreign currency financial statements | 1,322,491 | 1,366,772 |
| VII. Total comprehensive income | 1,370,300,395 | 403,243,737 |
| Total comprehensive income attributable to shareholders of parent company | 1,353,839,956 | 392,833,495 |
| Total comprehensive income attributable to minority shareholders | 16,460,439 | 10,410,242 |
| VIII. Earnings per share: | ||
| (I) Basic earnings per share | 0.44 | 0.13 |
| (II) Diluted earnings per share | 0.44 | 0.13 |
Legal Representative:Chen Lin Principal in charge of accounting:Wang JianPrincipal of the financialdepartment:WangWenxin
4. Income Statement of the Parent Company
Unit: RMB
| Item | Half year of 2021 | Half year of 2020 |
| I. Revenue | 42,342,857 | 37,484,754 |
| Less: Business cost | ||
| Tax and surcharge | 674,374 | 1,021,570 |
| Sales expenses | ||
| Administrative expenses | 91,345,095 | 59,530,745 |
| R & D expenses | 616,965 | 9,250 |
| Financial expenses | 76,018,822 | 79,503,361 |
| Of which: interest expense | 94,186,512 | 100,457,503 |
| Interest income | 17,977,849 | 22,683,049 |
| Plus: Other income | 2,018,355 | 1,955,221 |
| Investment income(―- ―for loss) | 718,475,642 | 703,591,508 |
| Credit impairment loss (―- ―for loss) | -9,473 | 6,972 |
| Income on disposal assets (―- ―for loss) | 6,893,580 | 981 |
| II. Operating profit | 601,065,705 | 602,974,510 |
| Add: Non-operating income | 29,967 | |
| Less: Non-operating expenses | 15,026,836 | 4,119,550 |
| III. Total profit (―- ―for loss) | 586,068,836 | 598,854,960 |
| Less: Income tax expenses | ||
| IV. Net profit (―- ―for loss) | 586,068,836 | 598,854,960 |
| (I) Net profit for continuing operations(―- ―for loss) | 586,068,836 | 598,854,960 |
| VI. Total comprehensive income | 586,068,836 | 598,854,960 |
| VII. Earnings per share | ||
| (I) Basic earnings per share | ||
| (II) Diluted earnings per share |
5. Consolidated Cash Flow Statement
Unit: RMB
| Item | Half year of 2021 | Half year of 2020 |
| I. Cash flows from operating activities | ||
| Cash received from sales of goods or rendering of services | 7,148,379,280 | 4,739,003,316 |
| Refund of taxes and surcharges | 33,207,751 | 11,866,382 |
| Receive other cash related to operating activities | 178,825,175 | 69,696,304 |
| Subtotal of cash inflow from operating activities | 7,360,412,206 | 4,820,566,002 |
| Cash paid for goods and services | 3,907,366,000 | 2,767,721,923 |
| Cash paid to and on behalf of employees | 888,450,173 | 708,599,327 |
| Payments of taxes and surcharges | 619,574,024 | 284,726,645 |
| Pay other cash related to operating activities | 246,776,634 | 279,873,718 |
| Subtotal of cash outflow from operating activities | 5,662,166,831 | 4,040,921,613 |
| Net cash flows from/(used in) operating activities | 1,698,245,375 | 779,644,389 |
| II. Cash flows from investing activities | ||
| Cash received from investment recovery | 1,182,000,000 | |
| Cash received from investment income | 3,559,719 |
| Net cash received from disposal of fixed assets, intangible assets and other long-term assets | 777,451 | 723,823 |
| Cash received relating to other investing activities | 32,136,351 | 328,067,104 |
| Subtotal of cash inflows from investing activities | 1,218,473,521 | 328,790,927 |
| Cash paid to acquire fixed assets, intangible assets and other long-term assets | 738,492,345 | 436,165,155 |
| Cash paid for investment | 1,644,000,000 | |
| Cash paid relating to other investing activities | 6,911,853 | 21,848,237 |
| Subtotal of cash outflows from investing activities | 2,389,404,198 | 458,013,392 |
| Net cash flows (used in)/from investing activities | -1,170,930,677 | -129,222,465 |
| III. Cash flows from financing activities | ||
| Cash received from borrowings | 605,996,933 | 1,243,981,261 |
| Cash received from bond issuance | 1,991,680,000 | |
| Cash received relating to other financing activities | 298,227 | |
| Subtotal of cash inflows from financing activities | 605,996,933 | 3,235,959,488 |
| Cash repayments of borrowings | 1,099,975,831 | 1,827,110,966 |
| Cash payments for interest expenses and distribution of dividends or profits | 508,082,947 | 336,678,849 |
| Cash payments relating to other financing activities | 390,507 | 483,358,139 |
| Subtotal of cash outflows from financing activities | 1,608,449,285 | 2,647,147,954 |
| Net cash flows (used in)/from financing activities | -1,002,452,352 | 588,811,534 |
| IV. Effect of foreign exchange rate changes on cash and cash equivalents | -1,217,711 | 587,483 |
| V. Net increase/(decrease) in cash and cash equivalents | -476,355,365 | 1,239,820,941 |
| Add: Cash and cash equivalents at beginning of current period | 2,124,028,196 | 1,831,835,030 |
| VI. Cash and cash equivalents at end of current period | 1,647,672,831 | 3,071,655,971 |
6. Cash Flow Statement of the Parent Company
Unit: RMB
| Item | Half year of 2021 | Half year of 2020 |
| I. Cash flows from operating activities | ||
| Refund of taxes and surcharges | 613,917 | |
| Cash received relating to other operating activities | 29,031,997 | 29,744,731 |
| Sub-total of cash inflows | 29,031,997 | 30,358,648 |
| Cash paid to and on behalf of employees | 77,605,388 | 79,870,460 |
| Payments of taxes and surcharges | 11,908,472 | 7,235,926 |
| Cash paid relating to other operating activities | 31,121,887 | 13,995,974 |
| Sub-total of cash outflows | 120,635,747 | 101,102,360 |
| Net cash flows from/(used in) operating activities | -91,603,750 | -70,743,712 |
| II. Cash flows from investing activities | ||
| Cash received from investment recovery | 1,090,000,000 | |
| Cash received from investment income | 967,450,288 | 703,591,508 |
| Net cash received from disposal of fixed assets, intangible assets and other long-term assets | 101,560 | 1,000 |
| Cash received relating to other investing activities | 300,000,000 | |
| Sub-total of cash inflows | 2,057,551,848 | 1,003,592,508 |
| Cash paid to acquire fixed assets, intangible assets and other long-term assets | 2,669,478 | 5,332,761 |
| Cash paid for investing activities | 1,839,799,000 | 188,500,000 |
| Sub-total of cash outflows | 1,842,468,478 | 193,832,761 |
| Net cash flows (used in)/from investing activities | 215,083,370 | 809,759,747 |
| III. Cash flows from financing activities | ||
| Cash received from borrowings | 314,000,000 | 832,999,801 |
| Cash received from issuing bonds | 1,991,680,000 | |
| Cash received relating to other financing activities | 143,736,716 | |
| Sub-total of cash inflows | 457,736,716 | 2,824,679,801 |
| Cash repayments of borrowings | 857,300,000 | 1,331,999,801 |
| Cash payments for interest expenses and distribution of dividends or profits | 497,947,983 | 308,585,809 |
| Other cash paid relating to financing activities | 722,080,591 | |
| Subtotal of cash outflows from financing activities | 1,355,247,983 | 2,362,666,201 |
| Net cash flows (used in)/from financing activities | -897,511,267 | 462,013,600 |
| IV. Effect of foreign exchange rate changes on cash and cash equivalents | 372,354 | 5,810 |
| V.Net increase/(decrease) in cash and cash equivalents | -773,659,293 | 1,201,035,445 |
| Add: Cash and cash equivalents at beginning of current period | 1,071,200,364 | 1,407,215,863 |
| VI. Cash and cash equivalents at end of current period | 297,541,071 | 2,608,251,308 |
7. Consolidated Statement of Changes in Owners’ Equity
Amount of the current 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 | |||||||||
| 1. The amount of share-based payment included in owner's equity | |||||||||
| 2. Others | |||||||||
| (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 reserve | -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 |
Amount of the previous period
Unit: RMB
| Item | Half year of 2020 | |||||||||
| Owners’ Equity Attributable to the Parent Company | Minority shareholders' equity | Total shareholders' equity | ||||||||
| Share capital | Capital surplus | Less: treasury share | Other comprehensive income | Special reserves | Surplus reserve | Undistributed profits | Subtotal | |||
| I. Balance at the end of the previous year | 3,106,915,005 | 683,219,358 | 118,066,397 | 6,565,864 | 11,102,921 | 946,251,286 | 4,859,600,841 | 9,495,588,878 | 370,266,650 | 9,865,855,528 |
| II. Balance at the beginning of current year | 3,106,915,005 | 683,219,358 | 118,066,397 | 6,565,864 | 11,102,921 | 946,251,286 | 4,859,600,841 | 9,495,588,878 | 370,266,650 | 9,865,855,528 |
| III. Amount of change in current term(―- ―for decrease) | -36,222,898 | -86,222,273 | -118,066,397 | 1,366,772 | -436,183 | 179,503,838 | 176,055,653 | 10,410,242 | 186,465,895 | |
| (I) Total amount of the comprehensive income | 1,366,772 | 391,466,723 | 392,833,495 | 10,410,242 | 403,243,737 | |||||
| (II) Capital paid in and reduced by owners | -36,222,898 | -86,222,273 | -118,066,397 | -4,378,774 | -4,378,774 | |||||
| 1. The amount of share-based payment included in owner's equity | -36,222,898 | -86,222,273 | -118,066,397 | -4,378,774 | -4,378,774 | |||||
| 2. Others | ||||||||||
| (III) Profit distribution | -211,962,885 | -211,962,885 | -211,962,885 | |||||||
| 1. Appropriations to owners (or shareholders) | -211,962,885 | -211,962,885 | -211,962,885 | |||||||
| (IV) Internal carry-forward of owners’ equity | ||||||||||
| (V) Specific reserve | -436,183 | -436,183 | -436,183 | |||||||
| 1. Withdrawal in the period | ||||||||||
| 2. Used in the period | 436,183 | 436,183 | 436,183 | |||||||
| (VI) Others | ||||||||||
| IV. Balance at the end of the period | 3,070,692,107 | 596,997,085 | 7,932,636 | 10,666,738 | 946,251,286 | 5,039,104,679 | 9,671,644,531 | 380,676,892 | 10,052,321,423 |
8. Statement of changes in owner's equity of the parent company
Amount of the current 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 | |||||
| 1. The amount of share-based payment included in owner's equity | |||||
| (III) Profit distribution | -307,069,211 | -307,069,211 | |||
| 1. Withdrawal of surplus reserve | |||||
| 2. Appropriations to owners (or shareholders) | -307,069,211 | -307,069,211 | |||
| (IV) Internal carry-forward of owners’ equity | |||||
| (V) Special reserve | |||||
| IV. Balance at the end of the period | 3,070,692,107 | 741,824,399 | 1,051,493,782 | 1,379,790,319 | 6,243,800,607 |
Amount of the previous period
Unit: RMB
| Item | Half year of 2020 | |||||
| Share capital | Capital surplus | Less: treasury share | Surplus reserve | Undistributed profits | Total shareholders' equity | |
| I. Balance at the end of the previous year | 3,106,915,005 | 828,046,672 | 118,066,397 | 960,796,646 | 496,479,354 | 5,274,171,280 |
| II. Balance at the beginning of current year | 3,106,915,005 | 828,046,672 | 118,066,397 | 960,796,646 | 496,479,354 | 5,274,171,280 |
| III. Amount of change in current term(―- ―for decrease) | -36,222,898 | -86,222,273 | -118,066,397 | 386,892,075 | 382,513,301 | |
| (I) Total amount of the comprehensive income | 598,854,960 | 598,854,960 | ||||
| (II) Capital paid in and reduced by owners | -36,222,898 | -86,222,273 | -118,066,397 | -4,378,774 | ||
| 1.The amount of share-based payment included in owner's equity | -36,222,898 | -86,222,273 | -118,066,397 | -4,378,774 | ||
| (III) Profit distribution | -211,962,885 | -211,962,885 | ||||
| 1. Withdrawal of surplus reserve | -211,962,885 | -211,962,885 | ||||
| 2. Appropriations to owners (or shareholders) | ||||||
| (IV) Internal carry-forward of owners’ equity | ||||||
| (V) Special reserve | ||||||
| IV. Balance at the end of the period | 3,070,692,107 | 741,824,399 | 960,796,646 | 883,371,429 | 5,656,684,581 |
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, 2021, 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 25, 2021.
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. Significant accounting policies and accounting estimatesThe Group determines specific accounting policies and accounting estimates based on the characteristics of production and operation,which are mainly reflected in the measurement of expected credit losses of receivables, the valuation method of inventories, fixedasset depreciation and intangible asset amortization, judgment standards for capitalization of development expenditures, incomeconfirmation time, etc.
Please see the Note for the key judgements adopted by the Group in applying important accounting policies.
1. Statement of compliance with the Accounting Standards for Business EnterprisesThe financial statements of the Company for the first half year of 2021 truly and completely present the financial position as of June30, 2021 and the operating results, cash flows and other information for the first half year of 2021 of the Group and the Company incompliance with the Accounting Standards for Business Enterprises.
2. Accounting period
The Company’s accounting year starts on 1 January and ends on 31 December.
3. Operating cycle
The Company’s operating cycle starts on 1 January and ends on 31 December.
4. Recording currency
The recording currency is Renminbi (RMB).
5. Accounting treatment method of business combination under common control and not under commoncontrol(a)Business combinations involving entities under common controlThe consideration paid and net assets obtained by the absorbing party in a business combination are measured at book value. Thedifference between book value of the net assets obtained from the combination and book value of the consideration paid for thecombination is treated as an adjustment to capital surplus (share premium). If the capital surplus (share premium) is not sufficient toabsorb the difference, the remaining balance is adjusted against retained earnings. Costs directly attributable to the combination areincluded in profit or loss in the period in which they are incurred. Transaction costs associated with the issue of equity or debtsecurities for the business combination are included in the initially recognized amounts of the equity or debt securities.(b) Business combinations involving entities 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 recognized 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 recognized 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 recognized amounts of the equityor debt securities.
6. Preparation of consolidated financial statements
The consolidated financial statements comprise the financial statements of the Company and all of its subsidiaries.
Subsidiaries are consolidated from the date on which the Group obtains control and are de-consolidated from the date that such
control ceases. For a subsidiary that is acquired in a business combination involving enterprises under common control, it is includedin the consolidated financial statements from the date when it, together with the Company, comes under common control of theultimate controlling party. The portion of the net profits realised before the combination date presented separately in the consolidatedincome statement.
In preparing the consolidated financial statements, where the accounting policies and the accounting periods of the Company andsubsidiaries are inconsistent, the financial statements of the subsidiaries are adjusted in accordance with the accounting policies andthe accounting period of the Company. For subsidiaries acquired from business combinations involving enterprises not undercommon control, the individual financial statements of the subsidiaries are adjusted based on the fair value of the identifiable netassets at the acquisition date.
All significant intra-group balances, transactions and unrealised profits are eliminated in the consolidated financial statements. Theportion of subsidiaries’ equity and the portion of a subsidiaries’ net profits and losses and comprehensive incomes for the period notattributable to Company are recognized as minority interests and presented separately in the consolidated financial statements underequity, net profits and total comprehensive income respectively. Unrealised profits and losses resulting from the sales of assets by theCompany to its subsidiaries are fully eliminated against net profit attributable to shareholders of the parent company. Unrealisedprofits and losses resulting from the sales of assets by a subsidiary to the Company are eliminated and allocated between net profitattributable to shareholders of the parent company and non-controlling interests in accordance with the allocation proportion of theparent company in the subsidiary. Unrealised profits and losses resulting from the sales of assets by one subsidiary to another areeliminated and allocated between net profit attributable to shareholders of the parent company and non-controlling interests inaccordance with the allocation proportion of the parent in the subsidiary.
After the control over the subsidiary has been gained, whole or partial minority equities of the subsidiary owned by minorityshareholders are acquired from the subsidiary’s minority shareholders. In the consolidated financial statements, the subsidiary's assetsand liabilities are reflected with amount based on continuous calculation starting from the acquisition date or consolidation date.Capital surplus is adjusted according to the difference between newly increased long-term equity investment arising from acquisitionof minority equity and the share of net assets calculated based on current shareholding ratio that the parent company is entitled to.The share is subject to continuous calculation starting from the acquisition date or consolidation date. If the capital surplus (capitalpremium or share capital premium) is not sufficient to absorb the difference, the remaining balance is adjusted against retainedearnings.
If the accounting treatment of a transaction which considers the Group as an accounting entity is different from that considers theCompany or its subsidiaries as an accounting entity, it is adjusted from the perspective of the Group.
7. Criteria for determining cash and cash equivalents
Cash and cash equivalents comprise cash on hand, deposits that can be readily drawn on demand, and short-term and highly liquidinvestments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.
8. Translating of foreign currency operations and foreign currency report form(a) Foreign currency transaction
Foreign currency transactions are translated into RMB using the exchange rates prevailing at the dates of the transactions.
At the balance sheet date, monetary items denominated in foreign currencies are translated into RMB using the spot exchange rateson the balance sheet date. Exchange differences arising from these translations are recognized in profit or loss for the current period,except for those attributable to foreign currency borrowings that have been taken out specifically for the acquisition or constructionof qualifying assets, which are capitalised as part of the cost of those assets. Non-monetary items denominated in foreign currenciesthat are measured at historical costs are translated at the balance sheet date using the spot exchange rates at the date of thetransactions. The effect of exchange rate changes on cash is presented separately in the cash flow statement.
(b) Translation of foreign currency financial statements
The asset and liability items in the balance sheets for overseas operations are translated at the spot exchange rates on the balancesheet date. Among the shareholders’ equity items, the items other than ―undistributed profits‖ are translated at the spot exchange ratesof the transaction dates. The income and expense items in the income statements of overseas operations are translated at the spotexchange rates of the transaction dates. The differences arising from the above translation are presented separately in the shareholders’equity. The cash flows of overseas operations are translated at the spot exchange rates on the dates of the cash flows. The effect ofexchange rate changes on cash is presented separately in the cash flow statement.
9. Financial instrument
A financial instrument is a contract that forms a financial asset of one party and forms a financial liability or equity instrument of theother party. A financial asset or a financial liability is recognized when the Group becomes a party to the contractual provisions of theinstrument.
(a)Financial assets
(i)Classification and measurement
According to the business model of the financial assets under management and the characteristics of the contractual cash flow of thefinancial assets, the Company divides the financial assets into the following three categories: (1) Financial assets measured atamortized cost; (2) Financial assets measured at fair value through other comprehensive income; (3) Financial assets at fair valuethrough profit or loss.
The financial assets are measured at fair value at initial recognition.Related transaction costs that are attributable to the acquisition ofthe financial assets are included in the initially recognized amounts, except for the financial assets at fair value through profit or loss,therelated transaction costs of which are recognized directly in profit or loss for the current period. Accounts receivable or notesreceivable arising from sales of products or rendering of services (excluding or without regard to significant financing components)are initially recognized at the consideration that is entitled to be charged by the Group as expected.
Debt instrumentsThe debt instruments held by the Group refer to the instruments that meet the definition of financial liabilities from the perspective ofthe issuer, and are measured in the following three ways.
Measured at amortised cost:
The objective of the Group's business model is to hold the financial assets to collect the contractual cash flows, and the contractualcash flow characteristics are consistent with a basic lending arrangement, which gives rise on specified dates to the contractual cash
flows that are solely payments of principal and interest on the principal amount outstanding. The interest income of such financialassets is recognized 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, other receivables, debtinvestment, and long-term receivables. Debt investment and long-term receivables that are due within one year (inclusive) as fromthe balance sheet date are listed as non-current assets due within one year. Debt investments that are due within one year (inclusive)are listed as other current assets.
Measured 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 target,and 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 financial assetsmainly comprise receivable financing and other financial debt investment.Other financial debt investment that are due within oneyear (inclusive) as from the balance sheet date are included in the current portion as other current assets.
Measured at fair value through profit or loss:
Debt instruments held by the Group that are not divided into those 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 recognized in profit or loss for the current period.
(ii)ImpairmentThe Group confirms the loss provision based on expected credit losses for financial assets measured at amortised cost, debtinstrument investments measured at fair value and whose changes are included in other comprehensive income, and financialguarantee contracts, etc.
Giving consideration to reasonable and supportable information on past events, current conditions and forecasts of future economicconditions, as well as the default risk weight, the expected credit loss was confirmed .As at each balance sheet date, the expectedcredit losses of financial instruments at different stages are measured respectively. 12-month ECL provision is recognized forfinancial instruments in Stage 1 that have not had a significant increase in credit risk since initial recognition; lifetime ECL provisionis recognized for financial instruments in Stage 2 that have had a significant increase in credit risk yet without credit impairmentsince initial recognition; and lifetime ECL provision is recognized for financial instruments in Stage 3 that have had creditimpairment
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 recognizes the 12-month ECL provision.
For the financial instruments in Stage 1, Stage 2 and with lower credit risk, the Group calculates the interest income by applying theeffective interest rate to the gross carrying amount (before deduction of the impairment provision). For the financial instrument inStage 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 receivables financing arising from daily business activities such as selling commodities andproviding labor services, regardless of whether there is a significant financing component, the Group measures the loss provisionbased on the expected credit loss for the entire duration.
In case the expected credit losses of an individually assessed financial asset cannot be evaluated with reasonable cost, the Groupdivides the receivables into certain groupings based on credit risk characteristics, and calculates the expected credit losses for thegroupings. Basis for determined groupings and method for provision are as follows:
| Notes receivables Portfolio 1 | Bank acceptance notes | Expected credit loss method |
| Notes receivables Portfolio 2 | 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 | Receivables related party | Expected credit loss method |
For accounts receivablesdivided into portfolios, notes and receivable financing arising from daily business activities such as sellingcommodities and providing labor services, the Group refers to historical credit loss experience, combined with current conditions andpredictions of future economic conditions. In addition to notes receivable, factoringreceivables and other receivables classified as acombination, The Group refers to the historical credit loss experience, combines with the current situation and the prediction offuture economic conditions, and calculates the expected credit loss through the default risk exposure and the expected credit loss ratein the next 12 months or the entire duration.
The Group recognizes the loss provision made or reversed into profit or loss for the current period. For debt instruments that are heldat fair value and whose changes are included in other comprehensive income, the Group adjusts other comprehensive income whileaccounting for impairment losses or gains in the current profit or loss.
(iii)DerecognitionA financial asset is derecognized when any of the below criteria is met: (1)the contractual rights to receive the cashflows from thefinancial asset expire; (2) the financial asset has been transferred and the Group transfers substantially all the risks and rewards ofownership of the financial asset to the transferee;(3)the financial asset has been transferred and the Group has not retained control ofthe financial asset, although the Group neither transfers nor retains substantially all the risks and rewards of ownership of thefinancial asset.
(b) Financial liabilitiesFinancial 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 mainly comprise financial liabilities at amortised cost, including bills payable, accounts payable, andother payables. This type of financial liability is initially measured at its fair value after deducting transaction costs, and issubsequently measured using the actual interest rate method. If the maturity is less than one year (including one year), it is listed ascurrent liabilities; if the maturity is more than one year but matures within one year (including one year) from the balance sheet date,it is listed as non-expiring within one year Current liabilities; the rest are listed as non-current liabilities.
(c)Determination of fair value of financial instruments
The fair value of a financial instrument that is tradedinanactive market is determined at the quoted price in the active market. The fairvalue of a financial instrument that is not traded in an active market is determined by using a valuation technique. In valuation, theGroup adopts valuation techniques applicable in the current situation and supported by adequateavailable data and other information,selects inputs with the same characteristics as those of assets or liabilities considered in relevant transactions of assets or liabilitiesbymarket participants, and gives priority to the use of relevant observable inputs. When relevant observable inputs are not available orfeasible, unobservable inputs are adopted.
10. Inventories
(a) Classification
Inventories refer to manufacturing sector, including raw materials, work in progress, finished goods and turnover materials, etc., andare measured at the lower of cost and net realizable value.
(b)Valuation method for issuing inventory
The cost at the time of inventory delivery is determined using the weighted average method. The cost of finished goods and work inprogress comprise raw materials, direct labour and systematically allocated production overhead based on the normal productioncapacity.
(c)Amortization methods of low-value consumables and packaging materials
Turnover materials include low-value consumables and packaging materials, amortized using the one-off write-off method.
(d) The determination of net realizable value and the method of provision for decline in the value of inventories.
Provision for decline in the value of inventories is determined at the excess amount of book values of the inventories over their netrealizable value. Net realizable value is determined based on the estimated selling price in the ordinary course of business, less theestimated costs to completion and estimated costs necessary to make the sale and related taxes.
(e) The Group adopts the perpetual inventory system.
11. Assets classified as held for sale
A non-current asset or a disposal group is classified as held for sale when all of the following conditions are satisfied: (1) thenon-current asset or the disposal group is available for immediate sale in its present condition subject to terms that are traditionallyand customary for sales; (2) the Group has made a resolution and obtained appropriate approval for disposal of the non-current assetor the disposal group, and the transfer is to be completed within one year.
Non-current assets (except for financial assets, investment properties at fair value and deferred tax assets) that meet the recognitioncriteria for held for sale are 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 recognized as investment income in profit or loss.
For long-term equity investments accounted for by the equity method, if the initial investment cost is greater than the fair value of theinvestee’s identifiable net assets, the initial investment cost shall be used as the long-term equity investment cost; if the initialinvestment cost is less than the investment, the invested entity shall be entitled to If the fair value share of net assets is identifiable,the difference is included in the current profit and loss, and the cost of equity investment in the growth period is adjusted accordingly.
For long-term equity investments accounted for using the equity method, the Group recognizes the investment income according to itsshare of net profit or loss of the investee. The Group discontinues recognising its share of the net losses of an investee after the carryingamounts of the long-term equity investment together with any long-term interests that in substance form part of the investor’s netinvestment in the investee are reduced to zero. However, if the Group has obligations for additional losses and the criteria with respect torecognition of provisions under the accounting standards on contingencies are satisfied, the Group continues recognising the investmentlosses and the provisions. For changes in owners’ equity of the investee other than those arising from its net profit or loss, itsproportionate share is directly recorded into capital surplus, provided that the proportion of shareholding of the Group in the investeeremains unchanged. The carrying amount of the investment is reduced by the Group’s share of the profit distribution or cash dividendsdeclared by an investee. The unrealised profits or losses arising from the transactions between the Group and its investees are eliminatedin proportion to the Group’s equity interest in the investees, based on which the investment gain or losses are recognized. Any lossesresulting from transactions between the Group and its investees attributable to asset impairment losses are not eliminated.
(c) Basis for determining existence of control, jointly control or significant influence over investees
The term "control" refers to the power in the investees, to obtain variable returns by participating in the related business activities ofthe investees, and the ability to affect the returns by exercising its power over the investees.
The term "significant influence" refers to the power to participate in the formulation of financial and operating policies of anenterprise, but not the power to control, or jointly control, the formulation of such policies with other parties.
(d) Impairment of long-term equity investments
Book value of long-term equity investments in subsidiaries and associates is reduced to the recoverable amount when the recoverableamount is less than book value.
13. 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 valuewill 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 property shall be terminated. The disposal income from the sale,transfer, scrapping or destruction of Investment property 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 of
the borrowings or applicable shorter period are discounted to the initial amount of the borrowings.
17. Right of use asset
The Group's right of use assets are mainly land use rights and others.
On the beginning date of the lease term, the Group recognizes the right to use the leased asset within the lease term as the right of useassets, including: the initial measurement amount of the lease liability; For the lease payment paid on or before the beginning of thelease term, if there is lease incentive, the relevant amount of lease incentive enjoyed shall be deducted; Initial direct expensesincurred by the lessee; The estimated cost incurred by the lessee for dismantling and removing the leased asset, restoring the sitewhere the leased asset is located or restoring the leased asset to the state agreed in the lease terms. The group subsequentlydepreciates the right of use assets using the straight-line method. If it can be reasonably determined that the ownership of the leasedasset is obtained at the expiration of the lease term, the group accrues depreciation within the remaining service life of the leasedasset. If it is impossible to reasonably determine that the ownership of the leased asset can be obtained at the expiration of the leaseterm, the group accrues depreciation within the shorter of the lease term and the remaining service life of the leased asset.
When the group remeasures the lease liability according to the present value of the changed lease payment and adjusts the book valueof the right of use asset accordingly, if the book value of the right of use asset has been reduced to zero, but the lease liability stillneeds to be further reduced, the group will include the remaining amount in the current profit and loss.
18. Intangible assets
(1)Valuation method, useful life and impairment test
Intangible assets, mainly including land use rights, patents and proprietary technologies, exploitation rights and others, are measuredat cost.
(a) Land use rights
Land use rights are amortised on the straight-line basis over their approved use period of 30 to 70 years. If the acquisition costs of theland use rights and the buildings located thereon cannot be reasonably allocated between the land use rights and the buildings, all ofthe acquisition costs are recognized as fixed assets.
(b)Patents and proprietary technologies
Patents 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 method
For an intangible asset with a finite useful life, review of its useful life and amortization method is performed at each year-end, withadjustment made as appropriate.
(e) Impairment of intangible assets
Book value of intangible assets is reduced to the recoverable amount when the recoverable amount is below book value.
(2)Accounting policy for internal research and development expenditure
The expenditure on an internal research and development project is classified into expenditure on the research phase and expenditureon the development phase based on its nature and whether there is material uncertainty that the research and development activitiescan form an intangible asset at end of the project.
Expenditure on the research phase related to planned survey, evaluation and selection for research on manufacturing technique 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.
19. Impairment of long-term assets
Fixed assets, construction in progress, intangible assets with finite useful lives and long-term equity investments in joint ventures andassociates are tested for impairment if there is any indication that the assets may be impaired at the balance sheet date; intangibleassets not ready for their intended use are tested at least annually for impairment, irrespective of whether there is any indication thatthey may be impaired. If the result of the impairment test indicates that the recoverable amount of an asset is less than its carryingamount, a provision for impairment and an impairment loss are recognized for the amount by which the asset’s carrying amountexceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and the present value ofthe future cash flows expected to be derived from the asset. Provision for asset impairment is determined and recognized on theindividual asset basis. If it is not possible to estimate the recoverable amount of an individual asset, the recoverable amount of agroup of assets to which the asset belongs is determined. A group of assets is the smallest group of assets that is able to generateindependent cash inflows.
Goodwill that is separately presented in the financial statements is tested at least annually for impairment, irrespective of whetherthere is any indication that it may be impaired. In conducting the test, book value of goodwill is allocated to the related asset groupsor groups of asset groups which are expected to benefit from the synergies of the business combination. If the result of the testindicates that the recoverable amount of an asset group or group of asset groups, including the allocated goodwill, is lower than itscarrying amount, the corresponding impairment loss is recognized. The impairment loss is first deducted from book value of
goodwill 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.
20. Long-term prepaid expenses
Long-term prepaid expenses include the expenditures that have been incurred but should be recognized as expenses over more thanone year in the current and subsequent periods. Long-term prepaid expenses are amortised on the straight-line basis over the expectedbeneficial period and are presented at actual expenditure net of accumulated amortization.
21. 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 employment
contracts 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.
22. Lease liabilities
At the beginning of the lease term, the Group recognizes the present value of the unpaid lease payments as lease liabilities, except forshort-term leases and low value asset leases. When calculating the present value of lease payments, the group adopts the interest rateembedded in the lease as the discount rate; If the interest rate embedded in the lease cannot be determined, the lessee's incrementalloan interest rate shall be used as the discount rate. The group calculates the interest expense of the lease liability in each period ofthe lease term according to the fixed periodic interest rate and records it into the current profit and loss, unless otherwise specified, itis included into the cost of relevant assets. The amount of variable lease payments not included in the measurement of lease liabilitiesshall be included in the current profits and losses when they actually occur, unless otherwise specified to be included in the cost ofrelevant assets.
After the beginning date of the lease term, when the actual fixed payment amount changes, the expected payable amount of theguaranteed residual value changes, the index or ratio used to determine the lease payment amount changes, the evaluation results oractual exercise of the purchase option, renewal option or termination option change, The group remeasures the lease liabilitiesaccording to the present value of the changed lease payments.
23. 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.
24. Share-based payments
Share-based payments are divided into equity-settled and cash-settled payments. The term "equity-settled share-based payment"refers to a transaction in which an enterprise grants shares or other equity instruments as a consideration in return for services.
Equity-settled share-based payment the Group‘s stock optionstock option plan is the equity-settled share-based payment in exchangeof employees' services and is measured at the fair value of the equity instruments at grant date. The equity instruments are exercisableafter services in vesting period are completed or specified performance conditions are met. In the vesting period, the servicesobtained in current period are included in relevant cost and expenses at the fair value of the equity instruments at grant date based onthe best estimate of the number of exercisable equity instruments, and capital surplus is increased accordingly. If the subsequentinformation indicates the number of exercisable equity instruments differs from the previous estimate, an adjustment is made and, onthe exercise date, the estimate is revised to equal the number of actual vested equity instruments.
In the period at which performance conditions and term of service are met, the relevant cost and expenses of equity-settled paymentshould be recognized, and capital surplus is increased accordingly. Before the exercise date, the accruing amounts of equity-settledpayments on balance sheet date reflect the part of expired waiting period and optimal estimation for the number of the Company finalvested equity instruments.
If the non-market conditions and term of service are not met so that share-based payment fail to exercise, the costs and expenses onthis portion should not be recognized. If the share-based payment agreement sets out the market conditions and term of non-vesting,as long as performance conditions and term of service are met, it is should be regard as exercisable right, no matter the marketconditions and non-vesting conditions are meet or not.
If the terms of equity-settled payment are modified, at least the service is confirmed in accordance with the unmodified terms. Inaddition, the increase of the fair value of the authorized equity instruments, or the beneficial changes to the employees on themodification date, recognized the increase in access to services. If the equity-settled payment is cancelled, the cancellation date shallbe deemed as an expedited exercise, and the unconfirmed amount shall be confirmed immediately. If the employee or other party isable to choose to meet the non-vesting conditions but not satisfied in the waiting period, equity-settled payment should be cancelled.But if a new equity instrument is granted, and the new equity instrument is confirmed to replace the old equity instrument which iscanceled in the authorization date of the new equity instrument, the new equity instrument should be disposed by using the sameconditions and terms of the old equity instrument for modifications.
25. 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 goods
The 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 services
The 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 netamount.
26. 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 inton non-operationg income.
27. Deferred tax assets and deferred tax liabilities
Deferred tax assets and deferred tax liabilities are calculated and recognized based on the differences arising between the tax bases ofassets and liabilities and their carrying amounts (temporary differences). Deferred tax asset is recognized for the deductible lossesthat can be carried forward to subsequent years for deduction of the taxable profit in accordance with the tax laws. No deferred taxliability is recognized for a temporary difference arising from the initial recognition of goodwill. No deferred tax asset or deferred taxliability is recognized for the temporary differences resulting from the initial recognition of assets or liabilities due to a transactionother than a business combination, which affects neither accounting profit nor taxable profit (or deductible loss). At the balance sheet
date, 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.
28. Leases
Lease refers to a contract in which the lessor transfers the right of use assets to the lessee for consideration within a certain period oftime.
The group as the lessee
The Group recognizes the right of use assets on the beginning date of the lease term and recognizes the lease liabilities according tothe present value of the unpaid lease payments. Lease payments include fixed payments and payments to be made when it isreasonably determined that the option to purchase or terminate the lease will be exercised. The variable rent determined according toa certain proportion of sales is not included in the lease payment and is included in the current profit and loss when it actually occurs.The group lists the lease liabilities paid within one year (including one year) from the balance sheet date as non current liabilities duewithin one year.
The group's use right assets include leased land use rights, etc. The right of use assets are initially measured at cost, which includesthe initial measurement amount of lease liabilities, lease payments paid on or before the beginning of the lease term, initial directexpenses, etc., and deducting the received lease incentives. If the group can reasonably determine the ownership of the leased asset atthe expiration of the lease term, depreciation shall be accrued within the remaining service life of the leased asset; If it is impossibleto reasonably determine whether the ownership of the leased asset can be obtained at the expiration of the lease term, depreciationshall be accrued within the shorter of the lease term and the remaining service life of the leased asset. When the recoverable amountis lower than the book value of the right of use assets, the group will write down its book value to the recoverable amount.
For short-term leases with a lease term of no more than 12 months and low value asset leases with a lower value when a single assetis new, the group chooses not to recognize the right of use assets and lease liabilities, and the relevant rental expenses are included inthe current profit and loss or the cost of relevant assets according to the straight-line method in each period of the lease term.
The group as the lessor
The lessor shall divide the lease into financing lease and operating lease on the lease commencement date. Finance lease refers to alease that substantially transfers almost all the risks and rewards related to the ownership of the leased asset. Leases other thanfinance leases are classified as operating leases.
As an operating lessor
The rental income from operating leases is recognized as the current profit and loss by the straight-line method in each period of thelease term, and the variable lease payments not included in the lease receipts are included in the current profit and loss when theyactually occur. If the operating lease is changed, the group will treat it as a new lease for accounting from the effective date of thechange, and the advance receipt or lease receivable related to the lease before the change is regarded as the receipt of the new lease.
As a financial lessor
The lessor shall, on the lease commencement date, take the minimum lease receipts on the lease commencement date as the entryvalue of the finance lease receivables, record the unguaranteed residual value at the same time, and record the difference between thesum of the minimum lease receipts and the unguaranteed residual value and the sum of their present value as unrealized financingincome.
29. 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 assets
Management estimates the useful life of fixed assets, based on historical experiences on using fixed assets that have similarproperties and functions. When there are differences between actually useful life and previously estimation, 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 impairment
Goodwill 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.
30. Significant accounting policies and changes in accounting estimates
(1) Important accounting policy changes
√ Applicable □Not applicable
The accounting standards for Business Enterprises No. 21 - leasing (hereinafter referred to as the new leasing standards) revised andissued by the Ministry of Finance in December 2018. The group and the company have adopted the above standards to prepare thefinancial statements for the half year of 2021. The impact of the newly revised leasing standards on the financial statements of thegroup and the company is as follows:
| Contents and reasons for changes in accounting policy | Affected report items | Affected amount | |
| January 1, 2021 | |||
| Consolidated | Company | ||
| Due to the implementation of the new lease standards, the group and the company reclassify the amount of long-term deferred expenses in line with the right of use assets to the right of use assets. | Right of use assets | 9,640,758 | |
| Long-term deferred expenses | -9,640,758 | ||
⑵ Important accounting estimate changes
□ Applicable √Not applicable
(3) The first implementation of the new lease standard from 2021, adjustments to the first implementationof the financial statements related items at the beginning of the year
√Applicable □Not applicable
Is it necessary to adjust the balance sheet accounts at the beginning of the year
√Yes □No
Unit: RMB
| Item | 31 December 2020 | 1 January 2021 | Adjustment |
| Long-term deferred expenses | 10,381,937 | 741,179 | -9,640,758 |
| Right of use assets | 9,640,758 | 9,640,758 | |
| Total | 10,381,937 | 10,381,937 |
According to the "Accounting Standards for Business Enterprises No. 21-Leases" (hereinafter collectively referred to as the NewLease Standards) issued by the Ministry of Finance of the People's Republic of China in December 2018, companies that are listed atthe same time both domestically and overseas as well as those listed overseas and adopt financial reporting standards are required Orcompanies that implement the Accounting Standards for Business Enterprises shall take effect on January 1, 2019; other companiesthat implement the Accounting Standards for Business Enterprises shall take effect on January 1, 2021.
(4) The first implementation of the new lease standard from 2021 retrospective adjustment of the previouscomparative data description
□ Applicable √Not applicable
31. 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 | 3%-5% |
2. Tax incentives
The main tax incentives the Group is entitled to are as follows:
Tianjin CSG Energy-Saving Glass Co., Ltd. (―Tianjin Energy Conservation‖) passed review on a high and new tech enterprise in2018 and obtained the Certificate of High and New Tech Enterprise, the period of validity is three years. It applies to 15% tax rate forthree years since 2018. In the 2021 High Tech Review, the income tax rate is temporarily 15% in the report period.
Dongguan CSG Architectural Glass Co., Ltd. (―Dongguan CSG‖) passed review on a high and new tech enterprise in 2019 andobtained the Certificate of High and New Tech Enterprise, the period of validity is three years. It applies to 15% tax rate for threeyears since 2019.
Wujiang CSG East China Architectural Glass Co., Ltd. (―Wujiang CSG Engineering‖) passed review on a high and new techenterprise in 2020 and obtained the Certificate of High and New Tech Enterprise, the period of validity is three years. It applies to 15%tax rate for three years since 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 and obtainedthe Certificate of High and New Tech Enterprise, the period of validity is three years. It applies to 15% tax rate for three years since2019.
Hebei Panel Glass Co., Ltd. (―Hebei Panel Glass‖) passed review on a high and new tech enterprise in 2019 and obtained theCertificate of High and New Tech Enterprise, the period of validity is three years. It applies to 15% tax rate for three years since2019.
Wujiang CSG Glass Co., Ltd. (―Wujiang CSG‖) passed review on a high and new tech enterprise in 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 enterprisein2018, and obtained the Certificate of High and New Tech Enterprise, and the period of validity was three years. It applies to 15%tax rate for three years since 2018. In the 2021 High Tech Review, the income tax rate is temporarily 15% in the report period.
Yichang CSG Photoelectric Glass Co., Ltd. (―Yichang CSG Photoelectric‖) passed review on a high and new tech enterprise in 2018,and obtained the Certificate of High and New Tech Enterprise, and the period of validity was three years. It applies to 15% tax ratefor three years since 2018. In the 2021 High Tech Review, the income tax rate is temporarily 15% in the report period.
Yichang CSG Display Co., Ltd (―Yichang CSG Displayer‖) passed review on a high and new tech enterprisein 2018, and obtainedthe Certificate of High and New Tech Enterprise, and the period of validity was three years. It applies to 15% tax rate for three yearssince 2018. In the 2021 High Tech Review, the income tax rate is temporarily 15% in the report period.
Qingyuan CSG New Energy-Saving Materials Co., Ltd. (―Qingyuan CSG Energy-Saving‖) passed review on a high and new techenterprise in 2019, and obtained the Certificate of High and New Tech Enterprise, and the period of validity was three years. Itapplies to 15% tax rate for three years since 2019.
Hebei CSG Glass Co., Ltd. (―Hebei CSG‖) was recognized as a high and new tech enterprise in 2018, and obtained the Certificate ofHigh and New Tech Enterprise, and the period of validity was three years. It applies to 15% tax rate for three years since 2018. In the2021 High Tech Review, the income tax rate is temporarily 15% in the report period.
Shenzhen CSG Applied Technology Co., Ltd. (―Shenzhen Technology‖) was recognized as a high and new tech enterprise in 2018,and obtained the Certificate of High and New Tech Enterprise, and the period of validity was three years. It applies to 15% tax ratefor three years since 2018. In the 2021 High Tech Review, the income tax rate is temporarily 15% in the report period.
Xianning CSG Photoelectric Glass Co., Ltd. (―Xianning Photoelectric‖) passed review on a high and new tech enterprise in 2019 andobtained the Certificate of High and New Tech Enterprise, the period of validity is three years. It applies to 15% tax rate for threeyears since 2019.
Sichuan CSG Energy Conservation Glass Co., Ltd. (―Sichuan CSG Energy Conservation‖) obtains enterprise income tax preferentialtreatment for Western Development, and temporarily calculates enterprise income tax at a tax rate of 15% for current period.
Chengdu CSG Glass Co., Ltd. (―Chengdu CSG‖) obtains enterprise income tax preferential treatment for Western Development, andtemporarily calculates enterprise income tax at a tax rate of 15% for current period.
Qingyuan CSG New Energy Co., Ltd. (―Qingyuan CSG New Energy‖), Suzhou CSG PV Energy Co., Ltd. (―Suzhou CSG PVEnergy‖), Jiangsu Wujiang CSG New Energy Co., Ltd. (―Wujiang CSG New Energy‖), and Yichang CSG New Energy Co., Ltd.(―Yichang CSG New Energy‖), Zhangzhou CSG Kibing PV Energy Co., Ltd. (―Zhangzhou CSG‖), Heyuan CSG Kibing PV EnergyCo., Ltd. (―Heyuan CSG‖), Shaoxing CSG Kibing PV Energy Co., Ltd. (―Shaoxing CSG‖) ,XianningCSG PV Energy Co.,Ltd.(―Xianning CSG PV Energy‖) and Zhanjiang CSG New Energy Co., Ltd. (―Zhanjiang CSG PV Energy‖‖),are publicinfrastructure project specially supported by the state in accordance with the Article 87 in Implementing Regulations of the Law ofthe People's Republic of China on Enterprise Income Tax, and can enjoy the tax preferential policy of ―three-year exemptions andthree-year halves‖, that is, starting from the tax year when the first revenue from production and operation occurs, the enterpriseincome tax is exempted from the first to the third year, while half of the enterprise income tax is collected for the following threeyears.
3. Others
Some subsidiaries of the Group have used the ―exempt, credit, refund‖ method on goods exported and the refund rate is0%-13%。VII. Notes to the consolidated financial statements
1. Cash at bank and on hand
Unit: RMB
| Item | Balance at the end of the period | Balance at the beginning of the period |
| Cash on hand | 2,899 | 2,725 |
| Cash at bank | 1,457,598,945 | 1,463,954,484 |
| Other cash balances | 191,831,694 | 661,831,694 |
| Total | 1,649,433,538 | 2,125,788,903 |
| Including: Total overseas deposits | 14,137,999 | 8,610,575 |
Other cash balances amounting to RMB 1,760,707 (Dec. 31, 2020: RMB 1,760,707), which is restricted cash.
2. Notes receivable
(1) Notes receivable listed by classification
Unit: RMB
| Item | Balance at the end of the period | Balance at the beginning of the period |
| Trade acceptance notes | 183,242,770 | 207,966,892 |
| Total | 183,242,770 | 207,966,892 |
(2) Notes receivable endorsed or discounted by the company at the end of the period and not yet due on thebalance sheet date
Unit: RMB
| Item | Amount of recognition termination at the period-end | Amount of not terminated recognition at the period-end |
| Trade acceptance notes | 46,332,724 | |
| Total | 46,332,724 |
3. Accounts receivable
(1) Accounts receivable disclosed by category
Unit: RMB
| Category | End of term | Beginning of term | ||||||||
| Carrying amount | Provision for bad debts | Book value | Carrying amount | Provision for bad debts | Book value | |||||
| Amount | Proportion | Amount | Proportion | Amount | Proportion | Amount | Proportion | |||
| Provision for bad debts on the individual basis | 30,906,348 | 4% | 18,705,804 | 61% | 12,200,544 | 32,282,145 | 5% | 19,736,937 | 61% | 12,545,208 |
| Provision for bad debts by portfolio | 847,123,526 | 96% | 16,942,470 | 2% | 830,181,056 | 682,567,524 | 95% | 13,645,599 | 2% | 668,921,925 |
| Total | 878,029,874 | 100% | 35,648,274 | 4% | 842,381,600 | 714,849,669 | 100% | 33,382,536 | 5% | 681,467,133 |
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 | 30,906,348 | 18,705,804 | 61% | Mainly due to some of the subsidiaries' accounts receivable from customers, due to business disputes or deterioration of customer operations, partial or full provision for bad debts was made. |
| Total | 30,906,348 | 18,705,804 | -- | -- |
Provision for bad debts by portfolio
Unit: RMB
| Name | Closing balance | ||
| Carrying amount | Provision for bad debts | Proportion | |
| Portfolio 1 | 847,123,526 | 16,942,470 | 2% |
| Total | 847,123,526 | 16,942,470 | -- |
Disclosure by the aging of accounts receivable
Unit: RMB
| Aging | Closing balance |
| Within 1 year (including 1 year) | 763,842,563 |
| 1 to 2 years | 50,168,188 |
| 2 to 3 years | 43,521,299 |
| Over 3 years | 20,497,824 |
| Total | 878,029,874 |
(2)Provision for bad debts accrued, recovered or reversed in the current period
Unit: RMB
| Category | Opening balance | Amount of change in the current period | Closing balance | |||
| Provision | Collect or reversal | Write-off | Others | |||
| Accounts receivable bad debt provision | 33,382,536 | 7,936,480 | 5,523,025 | 147,717 | 35,648,274 | |
| Total | 33,382,536 | 7,936,480 | 5,523,025 | 147,717 | 35,648,274 | |
(3) Accounts receivable actually written off in the current period
Unit: RMB
| Item | Amount written off |
| Accounts receivable from subsidiaries | 147,717 |
(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 | 245,809,132 | 28% | 4,916,183 |
| Total | 245,809,132 | 28% | 4,916,183 |
4. Receivables financing
Unit: RMB
| Item | Closing balance | Opening balance |
| Bank acceptance notes | 444,025,966 | 382,527,782 |
| Total | 444,025,966 | 382,527,782 |
(a) On June 30, 2021, the Group listed the endorsed or discounted but not yet due notes receivable in receivables financing asfollows:
Unit: RMB
| Item | Amount derecognized at the end of the period | Unrecognized amount at the end of the period |
| Bank acceptance notes | 2,120,718,232 | |
| Total | 2,120,718,232 |
5. Trading financial assets
Unit: RMB
| Item | Closing balance | Opening balance |
| Financial assets measured at fair value through profit or loss | 382,000,000 | |
| Of which: structured deposits | 382,000,000 | |
| Total | 382,000,000 |
6. Advances to suppliers
(1) Listed by aging analysis
Unit: RMB
| Aging | Closing balance | Opening balance | ||
| Amount | Proportion | Amount | Proportion | |
| within1year | 139,290,003 | 99% | 84,647,719 | 99% |
| 1 to 2years | 2,025,165 | 1% | 1,162,756 | 1% |
| 2 to 3years | 118,166 | |||
| over 3 years | 118,166 | |||
| Total | 141,433,334 | 100% | 85,928,641 | 100% |
As at June 30, 2021, advances to suppliers over 1 year with a carrying amount of RMB 2,143,331 (31 December 2020: RMB 1,280,922)were mainly prepaid to supplier for materials, which were not fully settled since the materials had not been received.
(2) Top 5 of the closing balance of the advances to suppliers collected according to the target
Unit: RMB
| Balance | Percentage in total advances to suppliers balance |
| Total balances for the five largest advances to suppliers | 66,929,022 | 47% |
7. Other receivables
Unit: RMB
| Item | Closing balance | Opening balance |
| Interest receivable | 112,611 | |
| Other receivables | 205,598,155 | 200,969,854 |
| Total | 205,710,766 | 200,969,854 |
(1) Interest receivable
1) Classification of interest receivable
| Item | Closing balance | Opening balance |
| Interest receivable | 112,611 | |
| Total | 112,611 |
(2) Other receivables
1) Classification of other receivables by nature
Unit: RMB
| Nature | Closing book balance | Opening book balance |
| Receivables from special fund for talent | 171,000,000 | 171,000,000 |
| Refundable deposits | 6,515,086 | 6,723,194 |
| Payments made on behalf of other parties | 24,014,527 | 18,672,346 |
| Petty cash | 1,710,701 | 969,748 |
| Advance payment (i) | 10,366,164 | 10,366,164 |
| Others | 8,479,296 | 9,615,428 |
| Total | 222,085,774 | 217,346,880 |
(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 2021 | 4,136,991 | 12,240,035 | 16,377,026 | |
| Balance on1 January 2021 in current period | —— | —— | —— | —— |
| --Transferred to the Phase II | ||||
| --Transferred to the Phase III | ||||
| -- Transferred back to the Phase II | ||||
| -- Transferred back to the Phase I | ||||
| Withdrawal | 165,501 | 165,501 | ||
| Recovery | 54,908 | 54,908 | ||
| Write-off | ||||
| Verification | ||||
| Other changes | ||||
| Balance on 30 June 2021 | 4,247,584 | 12,240,035 | 16,487,619 |
3) Significant changes in book balance of loss reserve during the current period
□ Applicable √Not applicable
4) Disclosure by the aging of other receivables
Unit: RMB
| Aging | Closing balance |
| Within 1 year (including 1 year) | 13,050,601 |
| 1 to 2 years | 4,691,595 |
| 2 to 3 years | 4,553,544 |
| Over 3 years | 199,790,034 |
| 3 to 4 years | 4,199,282 |
| 4 to 5 years | 357,679 |
| Over 5 years | 195,233,073 |
| Total | 222,085,774 |
5) Provision for bad debts withdrawn, recovered or reversed during the report period
Provision for bad debts:
Unit: RMB
| Category | Opening balance | Amount of change in the current period | Closing balance | |||
| Provision | Collect or reversal | Write-off | Others | |||
| Provision for bad debts of other receivables | 16,377,026 | 165,501 | 54,908 | 16,487,619 | ||
| Total | 16,377,026 | 165,501 | 54,908 | 16,487,619 | ||
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 | 77% | 3,420,000 |
| Governmental department B | Independent third party | 11,556,004 | Over 5 years | 5% | 231,120 |
| Company C | Independent third party | 10,366,164 | Over 5 years | 5% | 10,366,164 |
| Company D | Independent third party | 5,570,340 | Within 1 year | 3% | 111,407 |
| Company E | Independent third party | 2,397,512 | 1 to 3 Years | 1% | 47,950 |
| Total | -- | 200,890,020 | -- | 91% | 14,176,641 |
8. Inventories
Whether the new revenue standard has been implemented
√ Yes □ No
(1) Inventory classification
Unit: RMB
| Item | Closing balance | Opening balance | ||||
| Carrying amount | Reserve for depreciation of inventory or impairment of contract performance cost | Book value | Carrying amount | Reserve for depreciation of inventory or impairment of contract performance cost | Book value | |
| Raw materials | 389,946,146 | 1,482,237 | 388,463,909 | 274,659,097 | 1,756,185 | 272,902,912 |
| Products in process | 26,364,548 | 26,364,548 | 28,355,865 | 28,355,865 | ||
| Products in stock | 598,597,706 | 7,375,030 | 591,222,676 | 479,482,759 | 9,369,218 | 470,113,541 |
| Material in circulation | 48,444,935 | 269,763 | 48,175,172 | 44,603,984 | 819,984 | 43,784,000 |
| Total | 1,063,353,335 | 9,127,030 | 1,054,226,305 | 827,101,705 | 11,945,387 | 815,156,318 |
(2)Provision for decline in the value of inventories
Unit: RMB
| Item | Opening balance | Increased in this term | Decreased in this term | Closing balance | ||
| Provision | Others | Reversal or write off | Others | |||
| Raw materials | 1,756,185 | 273,948 | 1,482,237 | |||
| Products in stock | 9,369,218 | 1,994,188 | 7,375,030 | |||
| Material in circulation | 819,984 | 550,221 | 269,763 | |||
| Total | 11,945,387 | 2,818,357 | 9,127,030 | |||
9. Other current assets
Unit: RMB
| Item | Closing balance | Opening balance |
| VAT to be offset | 99,590,999 | 110,350,299 |
| Enterprise income tax prepaid | 1,474,796 | 17,508,242 |
| VAT input to be recognized | 13,678,003 | 12,106,681 |
| Others | 505 | 66,322 |
| Total | 114,744,303 | 140,031,544 |
10. Investment property
(1) Investment property with fair value measurement mode
√Applicable □ Not applicable
Unit: RMB
| Item | Houses, buildings and related land use rights |
| I. Opening balance | 383,084,500 |
| II. Changes in the current period | |
| Changes in fair value | |
| III. Closing balance | 383,084,500 |
On July 7, 2020, the Company passed the proposal on converting some self use real estate into investment real estate at the interimmeeting of the ninth Board of Directors, and decided to change the use mode of some self use buildings and related land use rights toexternal leasing, so as to obtain the rental income.From January to June 2021, the fair value of investment property remained unchanged.As of June 30, 2021, the Company's investment property was unsecured.
11. Fixed assets
Unit: RMB
| Item | Closing balance | Opening balance |
| Fixed assets | 8,742,434,064 | 9,145,644,569 |
| Total | 8,742,434,064 | 9,145,644,569 |
(1) Particulars of fixed assets
Unit: RMB
| Item | Buildings | Machinery and equipment | Motor vehicles | Total |
| I. Original book value: | ||||
| 1. Opening balance | 3,935,917,690 | 12,009,950,305 | 240,065,141 | 16,185,933,136 |
| 2. Increased amount of the period | ||||
| (1) Acquisition | 187,408 | 21,536,978 | 10,686,329 | 32,410,715 |
| (2) Transfers from construction in progress | 3,794,668 | 41,519,615 | 3,085,303 | 48,399,586 |
| 3. Decreased amount of the period |
| (1) Disposal or retirement | 326,702 | 14,088,033 | 6,955,326 | 21,370,061 |
| (2) Transfer to construction in progress | 4,350,817 | 4,350,817 | ||
| (3) Others | 4,020,605 | 875,444 | 4,896,049 | |
| 4. Closing balance | 3,935,552,459 | 12,054,568,048 | 246,006,003 | 16,236,126,510 |
| II. Accumulative depreciation | ||||
| 1. Opening balance | 1,000,672,653 | 4,982,036,862 | 221,652,650 | 6,204,362,165 |
| 2. Increased amount of the period | ||||
| (1) Provision | 60,922,224 | 376,935,218 | 10,697,694 | 448,555,136 |
| 3. Decreased amount of the period | ||||
| (1) Disposal or retirement | 178,158 | 12,880,514 | 6,795,236 | 19,853,908 |
| (2) Transfer to construction in progress | 2,050,431 | 2,050,431 | ||
| 4. Closing balance | 1,061,416,719 | 5,344,041,135 | 225,555,108 | 6,631,012,962 |
| III. Depreciation reserves | ||||
| 1. Opening balance | 34,966,687 | 800,882,872 | 76,843 | 835,926,402 |
| 2. Increased amount of the period | ||||
| (1) Provision | 1,355,749 | 25,397,000 | 333 | 26,753,082 |
| 3. Decreased amount of the period | ||||
| 4. Closing balance | 36,322,436 | 826,279,872 | 77,176 | 862,679,484 |
| IV. Book value | ||||
| 1. Closing book value | 2,837,813,304 | 5,884,247,041 | 20,373,719 | 8,742,434,064 |
| 2. Opening book value | 2,900,278,350 | 6,227,030,571 | 18,335,648 | 9,145,644,569 |
(2) Fixed assets with pending certificates of ownership
Unit: RMB
| Item | Carrying amount | Reasons for not yet obtaining certificates of title |
| Buildings | 828,226,388 | 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 | 2,290,839,174 | 1,893,380,611 |
| Total | 2,290,839,174 | 1,893,380,611 |
(1) Particulars of construction in process
Unit: RMB
| Item | Closing balance | Opening balance | ||||
| Book balance | Provision for impairment loss | Book value | Book balance | Provision for impairment loss | Book value | |
| Yichang CSG polysilicon tech-innovation project | 1,535,667,571 | 594,037,334 | 941,630,237 | 1,535,667,571 | 594,037,334 | 941,630,237 |
| Qingyuan New Materials Phase I technical transformation project | 418,460,409 | 418,460,409 | 413,852,963 | - | 413,852,963 | |
| Dongguan PV B Building 450MW PERC battery technology upgrade project | 204,832,535 | 204,832,535 | 204,801,994 | - | 204,801,994 | |
| Anhui Lightweight & high-permeability panel for solar energy equipment manufacturing base project | 144,743,223 | 144,743,223 | 15,039,984 | - | 15,039,984 | |
| Zhaoqing CSG high-grade energy saving glass production line project | 124,468,478 | 124,468,478 | 47,026,508 | - | 47,026,508 | |
| Dongguan solar light and high-efficiency double-glass processing production line construction project | 72,387,751 | 12,749,513 | 59,638,238 | 56,711,889 | 12,749,513 | 43,962,376 |
| Tianjin Energy-saving Coating Production Line Purchase and Upgrade Project | 67,770,962 | 67,770,962 | - | - | - | |
| Yichang display device company flat panel display project | 59,847,726 | 59,847,726 | 44,013,628 | - | 44,013,628 | |
| LED Sapphire Substrate Project | 32,420,412 | 32,420,412 | - | 32,420,412 | 32,420,412 | - |
| Wujiang Architectural Glass newly building intelligent manufacturing plant construction project | 25,062,668 | 25,062,668 | 760,313 | - | 760,313 | |
| Anhui Fengyang quartz sand project | 13,861,690 | 13,861,690 | 1,775,552 | - | 1,775,552 | |
| Zhaoqing CSG high-grade automobile glass production line project | 12,194,453 | 12,194,453 | 3,403,090 | - | 3,403,090 | |
| Hebei Panel Glass ultra-thin electronic glass Line II construction project | 9,936,478 | 9,936,478 | 9,568,451 | - | 9,568,451 | |
| Wujiang Float Lightweight and | 8,722,711 | 8,722,711 | 3,572,478 | - | 3,572,478 | |
| High-efficiency double-glass processing production line construction project | ||||||
| Xianning CSG 1200T/D Photovoltaic Packaging Material Production Line Project | 3,369,681 | 3,369,681 | - | - | - | |
| Others | 196,299,685 | 196,299,685 | 163,973,037 | 163,973,037 | ||
| Total | 2,930,046,433 | 639,207,259 | 2,290,839,174 | 2,532,587,870 | 639,207,259 | 1,893,380,611 |
（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 | 1,535,667,571 | 1,535,667,571 | 98% | 100% | Internal fund and bank loan | ||||||
| Qingyuan New Materials Phase I technical transformation project | 217,690,000 | 413,852,963 | 4,607,446 | 418,460,409 | 5% | 5% | Internal fund and bank loan | |||||
| Dongguan PV B Building 450MWPERC battery technology upgrade projec | 100,990,000 | 204,801,994 | 30,541 | 204,832,535 | 1% | Internal fund and bank loan | ||||||
| Anhui Lightweight &high-permeability panel for solar energy equipment manufacturing base project | 3,739,020,000 | 15,039,984 | 129,703,239 | 144,743,223 | 4% | 20% | Internal fund and bank loan | |||||
| Zhaoqing CSG high-grade energy saving glass production line project | 500,000,000 | 47,026,508 | 81,211,571 | 2,508,093 | 1,261,508 | 124,468,478 | 26% | 73% | 1,120,976 | 1,030,409 | 3.80% | Internal fund and bank loan |
| Dongguan solar light and | 76,140,000 | 56,711,889 | 15,675,862 | 72,387,751 | 27% | 51% | Internal fund |
| high-efficiency double-glass processing production line construction project | and bank loan | |||||||||||
| Tianjin Energy-saving Coating Production Line Purchase and Upgrade Project | 114,945,000 | 67,770,962 | 67,770,962 | 59% | 70% | 379,912 | 379,912 | 4.00% | Internal fund and bank loan | |||
| Yichang display device company flat panel display project | 1,970,000,000 | 44,013,628 | 17,117,774 | 1,283,676 | 59,847,726 | 91% | 93% | 11,560,142 | Internal fund and bank loan | |||
| LED Sapphire Substrate Project | 35,000,000 | 32,420,412 | 32,420,412 | 93% | 93% | 4,650,543 | Internal fund and bank loan | |||||
| Wujiang Architectural Glass newly building intelligent manufacturing plant construction project | 179,140,610 | 760,313 | 24,302,355 | 25,062,668 | 14% | 20% | Internal fund and bank loan | |||||
| Anhui Fengyang quartz sand project | 739,990,000 | 1,775,552 | 12,086,138 | 13,861,690 | 2% | 8% | Internal fund and bank loan | |||||
| Zhaoqing CSG high-grade automobile glass production line project | 609,830,000 | 3,403,090 | 8,791,363 | 12,194,453 | 2% | 9% | Internal fund and bank loan | |||||
| Hebei Panel Glass ultra-thin electronic glass Line II construction project | 284,964,800 | 9,568,451 | 374,664 | 6,637 | 9,936,478 | 4% | 4% | Internal fund and bank loan |
| Wujiang Float Lightweight and High-efficiency double-glass processing production line construction project | 158,850,000 | 3,572,478 | 5,150,233 | 8,722,711 | 6% | 6% | 6,021 | 6,021 | 4.00% | Internal fund and bank loan | ||
| Xianning CSG 1200T/D Photovoltaic Packaging Material Production Line Project | 858,090,000 | 3,369,681 | 3,369,681 | Internal fund and bank loan | ||||||||
| Others | 948,248,194 | 163,973,037 | 77,525,057 | 44,601,180 | 597,229 | 196,299,685 | 295,421 | Internal fund and bank loan | ||||
| Total | 10,582,418,604 | 2,532,587,870 | 447,716,886 | 48,399,586 | 1,858,737 | 2,930,046,433 | 18,013,015 | 1,416,342 | -- |
13. Right of use assets
Unit: RMB
| Item | Land-use right | Total |
| I. Original book value: | ||
| 1. Opening balance | 13,094,935 | 13,094,935 |
| 2. Increased amount of the period | 129,600 | 129,600 |
| 3. Decreased amount of the period | ||
| 4. Closing balance | 13,224,535 | 13,224,535 |
| II. Accumulative depreciation | ||
| 1. Opening balance | 3,454,177 | 3,454,177 |
| 2. Increased amount of the period | ||
| (1) Provision | 471,792 | 471,792 |
| 3. Decreased amount of the period | ||
| (1) Disposal | ||
| 4. Closing balance | 3,925,969 | 3,925,969 |
| III. Depreciation reserves | ||
| 1. Opening balance | ||
| 2. Increased amount of the period | ||
| (1) Provision | ||
| 3. Decreased amount of the period | ||
| (1) Disposal | ||
| 4. Closing balance | ||
| IV. Book value | ||
| 1. Closing book value | 9,298,566 | 9,298,566 |
| 2. Opening book value | 9,640,758 | 9,640,758 |
14. Intangible assets
(1) Particulars of intangible assets
Unit: RMB
| Item | Land use rights | Patents | Exploitation rights | Others | Total |
| I. Original book value: | |||||
| 1. Opening balance | 1,104,513,769 | 412,396,040 | 4,572,365 | 41,871,072 | 1,563,353,246 |
| 2. Increased amount of this period | |||||
| (1) Acquisition | 60,172,600 | 1,079,386 | 1,751,880 | 63,003,866 | |
| (2) Internal R&D | 1,247,970 | 1,247,970 | |||
| 3. Decreased amount of the period | |||||
| (1) Disposal | 282,878 | 282,878 | |||
| 4. Closing balance | 1,164,686,369 | 413,644,010 | 5,651,751 | 43,340,074 | 1,627,322,204 |
| II.Accumulatedamortization | |||||
| 1. Opening balance | 207,220,415 | 161,295,114 | 4,462,351 | 37,446,631 | 410,424,511 |
| 2. Increased amount of this period | |||||
| (1) Provision | 12,033,620 | 17,637,790 | 25,010 | 1,686,725 | 31,383,145 |
| 3. Decreased amount of the period | |||||
| (1) Disposal | 282,878 | 282,878 | |||
| 4. Closing balance | 219,254,035 | 178,932,904 | 4,487,361 | 38,850,478 | 441,524,778 |
| 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 | 945,432,334 | 221,509,759 | 1,164,390 | 4,480,463 | 1,172,586,946 |
| 2. Opening book value | 897,293,354 | 237,899,579 | 110,014 | 4,415,308 | 1,139,718,255 |
At the end of the period, the intangible assets arising from internal research and development accounted for 19.83% 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 | 4,616,821 |
As at June 30, 2021, ownership certificates of land use right (―Land ownership Certificates‖) for certain land use rights of the Groupwith carrying amounts of approximately RMB 4,616,821 (cost: RMB 6,586,712) had not yet been obtained by the Group (as atDecember 31, 2020, carrying amount: RMB 4,739,196, cost: RMB 6,586,712). The Company’s management is of the view that there isno legal restriction for the Group to apply for and obtain the Land Ownership Certificates and has no adverse effect on the Group’sbusiness operation.
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 | Recognized as intangible assets | Transfer to current profit and loss | |||
| Development expenditure | 49,153,407 | 10,250,159 | 1,247,970 | 58,155,596 | |
| Total | 49,153,407 | 10,250,159 | 1,247,970 | 58,155,596 | |
During Jan.-Jun. 2021, the total amount of research and development expenditures of the Group was RMB 235,137,041 (Jan.-Jun.2020: RMB 169,270,099), including RMB 224,886,882 (Jan.-Jun. 2020: RMB 145,063,647) recorded in income statement forcurrent period and the research and development expenditure with the amount of RMB 1,247,970 recognized as intangible assets forthe current period (Jan.-Jun. 2020: 134,119). At June 30, 2021, the intangible assets arising from internal research and developmentaccounted for 19.83% of total of intangible assets (31 December 2020: 20.56%).
16. Goodwill
(1) Book value of goodwill
Unit: RMB
| Name of the companies or goodwill item | Opening balance | Increased this term | Decreased this term | Closing balance |
| Tianjin CSG Energy-Saving Glass Co., Ltd. | 3,039,946 | 3,039,946 | ||
| Xianning CSG Photoelectric | 4,857,406 | 4,857,406 | ||
| Shenzhen CSG Display | 389,494,804 | 389,494,804 | ||
| Total | 397,392,156 | 397,392,156 |
(2) Goodwill impairment provision
Unit: RMB
| Name of the companies or goodwill item | Opening balance | Increased this term | Decreased this term | Closing balance |
| Provision | Disposal | |||
| Shenzhen CSG Displayer | 164,016,463 | 164,016,463 | ||
| Total | 164,016,463 | 164,016,463 |
17. Long-term prepaid expenses
Unit: RMB
| Item | Opening balance | Increased this term | Amortized this term | Other decreases | Closing balance |
| Expenses to be amortized | 741,179 | 163,410 | 577,769 | ||
| Total | 741,179 | 163,410 | 577,769 |
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 | 757,515,769 | 116,072,384 | 736,119,311 | 113,183,894 |
| Deductible loss | 510,469,789 | 89,552,256 | 509,689,080 | 86,461,610 |
| Government grants | 170,555,440 | 26,512,545 | 175,322,807 | 27,297,200 |
| Accrued expenses | 6,414,235 | 962,135 | 7,184,597 | 1,077,690 |
| Depreciation of fixed assets | 18,044,503 | 2,706,675 | 18,804,540 | 2,822,699 |
| Total | 1,462,999,736 | 235,805,995 | 1,447,120,335 | 230,843,093 |
(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 | 537,687,395 | 82,452,734 | 540,143,676 | 82,946,754 |
| Changes in fair value of investment property | 370,245,713 | 55,536,857 | 370,245,713 | 55,536,857 |
| Total | 907,933,108 | 137,989,591 | 910,389,389 | 138,483,611 |
(3) The net balances of deferred tax assets or liabilities
Unit: RMB
| Item | Off-set amount of deferred income tax assets and liabilitiesat the period-end | Closing balance of deferred income tax assetsor liabilities after off-set | Off-set amount of deferred income tax assets and liabilities at the period-beginning | Opening balance of deferred income tax assetsor liabilities after off-set |
| Deferred tax assets | 32,250,799 | 203,555,196 | 35,863,679 | 194,979,414 |
| Deferred tax liabilities | 32,250,799 | 105,738,792 | 35,863,679 | 102,619,932 |
(4) Details of unrecognized deferred income tax assets
Unit: RMB
| Item | Closing balance | Opening balance |
| Deductible losses | 1,602,170,145 | 1,458,462,329 |
| Total | 1,602,170,145 | 1,458,462,329 |
(5) Deductible losses of unrecognized deferred income tax assets will due the following years
Unit: RMB
| Year | Closing balance | Opening balance | Note |
| 2021年 | 111,625,585 | 111,625,585 | |
| 2022年 | 83,303,539 | 83,303,539 | |
| 2023年 | 146,238,837 | 146,238,837 | |
| 2024年 | 178,208,832 | 178,208,832 | |
| 2025年 | 939,085,536 | 939,085,536 | |
| 2026年 | 143,707,816 | ||
| Total | 1,602,170,145 | 1,458,462,329 | -- |
19. Other non-current assets
Unit: RMB
| Item | Closing balance | Opening balance |
| Prepayment of engineering equipment | 365,485,544 | 186,849,445 |
| Fixed deposit | 80,000,000 | |
| Prepayment for lease of land use rights | 6,510,000 | 6,510,000 |
| Total | 451,995,544 | 193,359,445 |
20. Short-term loans
(1)Short-term loan classification
Unit: RMB
| Item | Closing balance | Opening balance |
| Mortgage loan | 5,000,000 |
| Guaranteed loan | 198,560,100 | 298,095,571 |
| Unsecured loan | 114,000,000 | 49,800,000 |
| Total | 312,560,100 | 352,895,571 |
(i)On June 30, 2021, the Company provided guarantees for short-term loans of RMB 198,560,100 (31 December 2020: RMB298,095,571).(ii) On June 30, 2021, the interest rate range of short-term loans is 2.50% - 4.05% (December 31, 2020: 2.05% - 4.20%).
21. Notes payable
Unit: RMB
| Category | Closing balance | Opening balance |
| Trade acceptance notes | 32,197,770 | 9,903,213 |
| Bank acceptance notes | 272,512,582 | 134,947,979 |
| Total | 304,710,352 | 144,851,192 |
22. Accounts payable
(1) List of accounts payable
Unit: RMB
| Item | Closing balance | Opening balance |
| Materials payable | 730,485,919 | 755,509,571 |
| Equipment payable | 190,108,674 | 209,292,511 |
| Construction expenses payable | 196,954,273 | 146,976,774 |
| Freight payable | 66,600,072 | 70,011,499 |
| Utilities payable | 48,346,975 | 49,441,605 |
| Others | 9,652,096 | 6,601,091 |
| Total | 1,242,148,009 | 1,237,833,051 |
(2) Significant accounts payable due for over one year
Unit: RMB
| Item | Closing balance | Unpaid reason |
| Construction and equipments | 133,063,987 | The final account of the project has not been completed, so it has not been settled. |
| Total | 133,063,987 | -- |
23. Contract liabilities
Unit: RMB
| Item | Closing balance | Opening balance |
| Contract liabilities | 273,225,477 | 296,776,624 |
| Total | 273,225,477 | 296,776,624 |
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 | 342,315,790 | 810,446,979 | 897,705,163 | 255,057,606 |
| II. Welfare after departure- defined contribution plans | 461 | 55,809,127 | 55,797,859 | 11,729 |
| III.Termination benefits | 35,915 | 2,066,360 | 1,764,646 | 337,629 |
| Total | 342,352,166 | 868,322,466 | 955,267,668 | 255,406,964 |
(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 | 322,617,585 | 757,598,479 | 847,523,138 | 232,692,926 |
| 2. Social security contributions | 5,288 | 24,400,419 | 24,400,158 | 5,549 |
| Including: Medical insurance | 4,957 | 21,468,251 | 21,468,267 | 4,941 |
| Work injury insurance | 1,589,916 | 1,589,639 | 277 | |
| Maternity insurance | 331 | 1,342,252 | 1,342,252 | 331 |
| 3. Housing funds | 1,018,185 | 19,276,472 | 18,653,235 | 1,641,422 |
| 4.Labour union funds and employee education funds | 18,674,732 | 9,171,609 | 7,128,632 | 20,717,709 |
| Total | 342,315,790 | 810,446,979 | 897,705,163 | 255,057,606 |
(3) List of defined contribution plans
Unit: RMB
| Item | Opening balance | Increased this term | Decreased this term | Closing balance |
| 1. Basic pensions | 444 | 53,953,257 | 53,942,256 | 11,445 |
| 2. Unemployment insurance | 17 | 1,855,870 | 1,855,603 | 284 |
| Total | 461 | 55,809,127 | 55,797,859 | 11,729 |
25. Tax payable
Unit: RMB
| Item | Closing balance | Opening balance |
| Value-added-tax payable | 58,200,217 | 82,055,265 |
| Corporate income tax payable | 138,196,034 | 90,295,709 |
| Individual income tax payable | 9,064,353 | 3,600,603 |
| City maintenance and construction tax | 3,905,435 | 6,414,982 |
| Property tax | 8,932,017 | 3,937,112 |
| Education surcharge | 3,307,609 | 4,762,191 |
| Environmental tax payable | 1,720,080 | 1,901,375 |
| Others | 6,041,950 | 1,953,834 |
| Total | 229,367,695 | 194,921,071 |
26. Other payables
Unit: RMB
| Item | Closing balance | Opening balance |
| Interest payable | 34,601,072 | 132,133,902 |
| Other payables | 198,673,151 | 155,199,090 |
| Total | 233,274,223 | 287,332,992 |
(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 | 2,006,273 | 1,590,247 |
| Interest payable for short-term borrowings | 336,734 | 330,034 |
| Interest payable for medium-term notes | 37,955,556 | |
| Interest payable for corporate bonds | 32,258,065 | 92,258,065 |
| Total | 34,601,072 | 132,133,902 |
(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 | 111,550,329 | 77,932,889 |
| Accrued cost of sales(i) | 47,553,186 | 38,943,663 |
| Payable for contracted labour costs | 18,605,763 | 16,548,708 |
| Temporary receipts | 10,946,011 | 10,298,957 |
| Deposit for disabled | 6,559,198 | 4,680,725 |
| Others | 3,458,664 | 6,794,148 |
| Total | 198,673,151 | 155,199,090 |
(i) The project mainly includes various expenses that have occurred but have not been invoiced on June 30, 2021, including canteenfees, consulting service fees, etc.
27. Non-current liabilities due within one year
Unit: RMB
| Item | Closing balance | Opening balance |
| Long-term borrowings due within 1 year | 135,934,639 | 127,531,709 |
| Medium term notes due within 1 year | 800,000,000 | |
| Total | 135,934,639 | 927,531,709 |
28. Other current liabilities
Unit: RMB
| Item | Closing balance | Opening balance |
| Output tax to be transferred | 32,029,042 | 34,286,292 |
| Others | 300,000 | 300,000 |
| Total | 32,329,042 | 34,586,292 |
29. Long-term borrowings
(1) Long-term loan classification
Unit: RMB
| Item | Closing balance | Opening balance |
| Guaranteed | 298,057,017 | 153,253,983 |
| Unsecured | 892,500,000 | 700,000,000 |
| Total | 1,190,557,017 | 853,253,983 |
As at 30 June 2021, the interest of long-term borrowings varied from 3.40%-4.60% (31 December 2020: 3.40%-4.60%).
30. Bonds payable
(1) Bonds payable
Unit: RMB
| Item | Closing balance | Opening balance |
| Bonds payable | 1,995,284,179 | 1,994,020,348 |
| Total | 1,995,284,179 | 1,994,020,348 |
(2) Increase or decrease of bonds payable (excluding preferred shares, perpetual bonds and other financialinstruments classified as financial liabilities)
Unit: RMB
| Name | Face value | Issue date | Term | Amount of issue | Opening balance | Issue in the period | Interest accrued at face value | Amortization of premium and discount | Current repayment | Closing balance |
| 20 CSG 01 | 100 | 2020-3-24 to 2020-3-25 | 3 years | 2,000,000,000 | 1,994,020,348 | 60,000,000 | 4,715,821 | 1,995,284,179 | ||
| Total | -- | -- | -- | 2,000,000,000 | 1,994,020,348 | 60,000,000 | 4,715,821 | 1,995,284,179 |
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. Deferred income
Unit: RMB
| Item | Opening balance | Increase in current period | decrease in current period | Closing balance | Reason |
| Government grants | 498,056,081 | 92,718,500 | 16,158,100 | 574,616,481 | |
| Total | 498,056,081 | 92,718,500 | 16,158,100 | 574,616,481 | -- |
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) | 43,592,443 | 1,687,446 | 41,904,997 | Assets related | |
| Dongguan CSG Golden Sun Project (ii) | 35,075,250 | 1,375,500 | 33,699,750 | Assets related | |
| Hebei CSG Golden Sun Project (iii) | 35,750,000 | 1,375,000 | 34,375,000 | Assets related | |
| Xianning CSG Golden Sun Project (iv) | 38,891,417 | 1,515,250 | 37,376,167 | Assets related | |
| Infrastructure compensation for Wujiang CSG Glass Co., Ltd (v) | 27,504,284 | 2,020,769 | 25,483,515 | Assets related | |
| Qingyuan Energy-saving project (vi) | 14,176,616 | 977,317 | 13,199,299 | Assets related | |
| Yichang Silicon products project (vii) | 13,359,375 | 1,406,250 | 11,953,125 | Assets related | |
| Yichang CSG silicon slice auxiliary project (viii) | 18,456,685 | 744,527 | 17,712,158 | Assets related | |
| Sichuan energy-saving glass project (ix) | 5,513,400 | 827,010 | 4,686,390 | Assets related | |
| Group coating film experimental project (x) | 2,401,800 | 499,500 | 1,902,300 | Assets related | |
| Yichang high purity silicon material project (xi) | 2,720,797 | 151,588 | 2,569,209 | Assets related | |
| Yichang semiconductor silicon material project (xii) | 2,866,666 | 2,866,666 | Assets related | ||
| Yichang CSG | 43,233,170 | 1,333,907 | 41,899,263 | Assets related |
| Display project (xiii) | |||||
| Xianning Photoelectric project (xiv) | 6,760,000 | 260,000 | 6,500,000 | Assets related | |
| Shenzhen medical equipment subsidy project(xv) | 8,342,000 | 582,000 | 7,760,000 | Assets related | |
| Group talent fund project (xvi) | 171,000,000 | 171,000,000 | Income related | ||
| Zhaoqing energy saving industry support fund project(xvii) | 92,718,500 | 92,718,500 | Income related | ||
| Others | 28,412,178 | 1,402,036 | 27,010,142 | Assets and income related | |
| Total | 498,056,081 | 92,718,500 | 16,158,100 | 574,616,481 |
Other statement:
(i)The allowance was granted by Tianjin Municipal Government. The allowance was used for establishing PV power station byTianjin CSG Energy-Saving Glass Co., Ltd. The facilities belonged to Tianjin CSG upon completion. The allowance will be creditedto income statement in 20 years, the useful life of the PV power station.
(ii)The allowance was granted by Dongguan Municipal Government. The allowance was used for establishing PV power station byDongguan CSG Architectural Glass Co., Ltd. The facilities belonged to Dongguan CSG upon completion. The allowance will becredited to income statement in 20 years, the useful life of the PV power station.
(iii)The allowance was granted by Langfang Municipal Government. The allowance was used for establishing PV power station byHebei CSG Glass Co., Ltd. ("Hebei CSG"). When the facilities were set up, they belonged to Hebei CSG. The allowance will becredited to income statement in 20 years, the useful life of the PV power station.
(iv)The allowance was granted by Xianning Municipal Government. The allowance was used for establishing PV power station byXianning CSG Glass Co., Ltd. The facilities belonged to Xianning CSG upon completion. The allowance will be credited to incomestatement in 20 years, the useful life of the PV power station.
(v)The allowance was infrastructure compensation granted by Wujiang municipal government, and will be credited to incomestatement in 15 years, the shortest operating period as committed by the Group.
(vi)The allowance appropriated by Guangdong Province was a pilot project for strategic emerging industry clusters development,which was used to establish high performance ultra-thin electronic glass production lines by Qingyuan CSG. The allowance will becredited to income statement in 10 years, the useful life of the production line.
(vii)The balance represented amounts granted to Yichang CSG polysilicon Co., Ltd. by Yichang City Dongshan Development
Corporation under the provisions of the investment contract signed between the Group and the Municipal Government of Yi Chang.The proceeds were designed for the construction of electricity transformer and the pipelines. Yichang polysilicon is entitled to theownership of the facilities, which will be amortised by 16 years according to the useful life of the converting station.
(viii) It represented the government supporting fund obtained by Yichang polysilicon from the acquiring of the assets and liabilities ofCrucible project of Yichang Hejing Photoelectric Ceramic Co., Ltd. The proceeds would be amortised and credited to income statementby 16 years after related assets were put into use.
(ix)It represented the funds granted by Chengdu local government for energy glass project. It will be amortised and credited to incomestatement in 15 years, in accordance with the minimum operating period committed by the Group.
(x)The allowance was granted by Shenzhen City Development and Reform Commission for the development of Group Coating Filmexperimental project. The project is amortized and included in profit and loss according to the expected service life of relevant fixedassets.
(xi) It represented the funds granted by Hubei local government for inport discount complement and international corporation specialsubsidy. The grant will be amortised and credited to income statement by 12 to 15 years.
(xii) It represented the special subsidy of Yichang National Regional Strategic Emerging Industry Development Pilot Project II, whichis used to complement Yichang CSG Polysilicon ―Hubei semiconductor silicon preparative technique project laboratory‖. The grantwill 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 project constructionsupport funds and construction of coil coating three-line project. The grant will be amortised and credited to income statement by 15years.
(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 Yichang High-tech Industrial Development Zone. For seniormanagement personnel, engineering technical personnel and senior professional technical team which is working at Yichang or plane tointroduction, fund of RMB171 million was set up, as a special fund for talent introduction and housing resettlement.
(xvii) It is the financial support fund for Provincial Industrial Co Construction in 2021 allocated by the Finance Bureau of Zhaoqinghigh tech Industrial Development Zone for Zhaoqing energy conservation company, which is used for enterprise development,production and operation.
32. Share Capital
Unit: RMB
| Opening balance | Changed in the report period(+,-) | Closing balance | |||||
| New issues | Bonusissue | Transferred fromreserves | Others | Sub-total | |||
| Total of capital shares | 3,070,692,107 | 3,070,692,107 | |||||
33. 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 |
34. Other comprehensive income
Unit: RMB
| Item | Opening balance | Occuring in current period | Closing balance | |||||
| Amount incurred before income tax | Less: Amount transferred into profit and loss in the current period that recognized into other comprehensive income in prior period | Less: Amount transferred into retained earnings in the current period that recognized into other comprehensive income in prior period | Less: income tax expense | After-tax attribute to the parent company | After-tax attribute to minority shareholder | |||
| I. Other comprehensive income items which can not be reclassified to profit or loss | ||||||||
| II. Other comprehensive income items which will be reclassified to profit or loss | 161,816,819 | 1,322,491 | 1,322,491 | 163,139,310 | ||||
| Differences on translation of foreign currency financial statements | -1,884,978 | 1,322,491 | 1,322,491 | -562,487 | ||||
| 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 | 161,816,819 | 1,322,491 | 1,322,491 | 163,139,310 |
35. Special reserves
Unit: RMB
| Item | Opening balance | Increased this term | Decreased this term | Closing balance |
| Safety production cost | 10,269,002 | 1,166,410 | 9,102,592 | |
| Total | 10,269,002 | 1,166,410 | 9,102,592 |
36. Surplus reserves
Unit: RMB
| Item | Beginning of term | Increased this term | Decreased this term | End of term |
| Statutory surplus reserve | 909,095,854 | 909,095,854 | ||
| Discretionary surplus reserve | 127,852,568 | 127,852,568 | ||
| Total | 1,036,948,422 | 1,036,948,422 |
37. 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 | 5,336,266,412 | 4,859,600,841 |
| Retained earnings at the beginning of this term after adjustment | 5,336,266,412 | 4,859,600,841 |
| Add: net profits belonging to equity holders of the Company | 1,352,517,465 | 391,466,723 |
| Less:Appropriations to statutory surplus reserve | ||
| Common stock dividends payable | 307,069,211 | 211,962,885 |
| Retained earnings in the end | 6,381,714,666 | 5,039,104,679 |
38. Revenue and cost of sales
Unit: RMB
| Item | Occurred in current term | Occurred in previous term | ||
| Revenue | Cost | Revenue | Cost | |
| Revenue from main operations | 6,549,257,796 | 4,117,364,759 | 4,384,952,565 | 3,156,673,458 |
| Revenue from other operations | 65,544,742 | 9,262,386 | 39,268,784 | 2,893,573 |
| Total | 6,614,802,538 | 4,126,627,145 | 4,424,221,349 | 3,159,567,031 |
39. Tax and surcharge
Unit: RMB
| Item | Occurred in current term | Occurred in previous term |
| City maintenance and construction tax | 20,244,886 | 13,417,822 |
| Educational surcharge | 17,918,346 | 11,582,943 |
| Housing property tax | 16,177,724 | 14,336,199 |
| Land use rights | 11,475,052 | 6,477,593 |
| Stamp tax | 3,873,467 | 2,314,485 |
| Environmental protection tax | 3,569,685 | 3,590,774 |
| Others | 706,894 | 618,576 |
| Total | 73,966,054 | 52,338,392 |
40. Sales expenses
Unit: RMB
| Item | Occurred in current term | Occurred in previous term |
| Freight expenses | 5,430,828 | 68,005,806 |
| Employee benefits | 82,609,837 | 65,900,124 |
| Entertainment expenses | 10,768,857 | 5,966,150 |
| Business travel expenses | 4,144,027 | 2,646,504 |
| Vehicle use fee | 3,994,805 | 3,267,556 |
| Rental expenses | 3,608,518 | 3,280,632 |
| Depreciation expenses | 386,840 | 464,897 |
| Others | 14,382,303 | 12,107,865 |
| Total | 125,326,015 | 161,639,534 |
41. Administrative expenses
Unit: RMB
| Item | Occurred in current term | Occurred in previous term |
| Employee benefits | 205,775,425 | 154,039,065 |
| Depreciation expenses | 30,558,014 | 30,983,197 |
| Amortization of intangible assets | 31,383,145 | 26,914,457 |
| General office expenses | 14,283,686 | 11,476,149 |
| Labour union funds | 9,143,124 | 7,058,240 |
| Entertainment fees | 8,583,533 | 4,133,275 |
| Business travel expenses | 3,293,171 | 1,800,471 |
| Utility fees | 2,661,302 | 2,887,017 |
| Canteen fee | 3,737,420 | 3,409,550 |
| Vehicle use fee | 2,818,991 | 2,011,558 |
| Consulting advisers | 7,243,698 | 7,668,560 |
| Factory shutdown losses | 42,910,507 | |
| Others | 35,433,195 | 22,127,361 |
| Total | 354,914,704 | 317,419,407 |
42. Research and development expenses
Unit: RMB
| Item | Occurred in current term | Occurred in previous term |
| Research and development expenses | 224,886,882 | 145,063,647 |
| Total | 224,886,882 | 145,063,647 |
43. Finance expenses
Unit: RMB
| Item | Occurred in current term | Occurred in previous term |
| Interest on borrowings | 103,386,761 | 157,133,164 |
| Less: Capitalised interest | 1,416,342 | 4,954,200 |
| Interest expenses | 101,970,419 | 152,178,964 |
| Less: Interest income | 20,024,847 | 24,931,363 |
| Exchange losses | 3,871,530 | -499,379 |
| Others | 1,182,897 | 4,994,975 |
| Total | 86,999,999 | 131,743,197 |
44. Other income
Unit: RMB
| Source of other gains | Occurred in current term | Occurred in previous term |
| Government subsidy amortization | 16,158,100 | 17,118,391 |
| Industry support funds | 1,782,700 | 3,698,000 |
| Government incentive funds | 11,750,470 | 13,973,402 |
| Research grants | 2,129,180 | 5,613,820 |
| Others | 4,733,354 | 7,605,713 |
| Total | 36,553,804 | 48,009,326 |
45. Investment income
Unit: RMB
| Item | Occurred in current term | Occurred in previous term |
| Structural deposit income | 3,075,863 | |
| Fixed deposit income | 596,467 | |
| Total | 3,672,330 |
46. Credit impairment losses
Unit: RMB
| Item | Occurred in current term | Occurred in previous term |
| Losses on bad debts of other receivables | 110,593 | 4,451 |
| Losses on bad debts of accounts receivable | 2,413,455 | 2,957,469 |
| Total | 2,524,048 | 2,961,920 |
47. Asset impairment losses
Unit: RMB
| Item | Occurred in current term | Occurred in previous term |
| Decline in the value of inventories | -154,053 | |
| Impairment loss of fixed assets | 26,753,082 | |
| Total | 26,753,082 | -154,053 |
48. 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 | 137,638 | -342,005 |
| Total | 137,638 | -342,005 |
49. 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 | 2,504,317 | 580,519 | 2,504,317 |
| Amounts unable to pay | 2,998,725 | 876,291 | 2,998,725 |
| Government subsidy | 100,000 | ||
| Others | 2,048,756 | 661,321 | 2,048,756 |
| Total | 7,551,798 | 2,218,131 | 7,551,798 |
50. 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 | 265,306 | 17,496,945 | 265,306 |
| Compensation | 20,600 | ||
| Refund | 15,028,336 | 15,028,336 | |
| Others | 1,168,343 | 18,008 | 1,168,343 |
| Total | 16,461,985 | 17,535,553 | 16,461,985 |
51. Income tax expenses
(1) List of income tax expenses
Unit: RMB
| Item | Occurred in current term | Occurred in previous term |
| Current income tax expenses | 260,737,212 | 94,992,504 |
| Deferred income tax expenses | - 5,456,922 | -10,877,296 |
| Total | 255,280,290 | 84,115,208 |
(2) Adjustment process of accounting profit and income tax expense
Unit: RMB
| Item | Occurred in current term |
| Total profit | 1,624,258,194 |
| Current income tax expense accounted by tax and relevant regulations | 233,923,611 |
| Costs, expenses and losses not deductible for tax purposes | 495,218 |
| Impact on the use of deductible loss of deferred income tax assets not recognized in previous period | -206,530 |
| Influence of deductible temporary difference or deductible losses of unrecognized deferred income tax assets | 34,517,081 |
| Balance the previous year income tax adjustment | - 6,950,609 |
| Impact of tax incentives | - 6,498,481 |
| Income tax expenses | 255,280,290 |
52. Other comprehensive income
See the note for details.
53. Items of the cash flow statement
(1) Other cash received related to operating activities
Unit: RMB
| Item | Occurred in current term | Occurred in previous term |
| Interest income | 20,024,847 | 24,931,363 |
| Government grant | 113,114,204 | 33,990,935 |
| Others | 45,686,124 | 10,774,006 |
| Total | 178,825,175 | 69,696,304 |
(2)Other cash paid related to operating activities
Unit: RMB
| Item | Occurred in current term | Occurred in previous term |
| Freight expenses | 7,337,545 | 74,815,811 |
| General office expenses | 21,928,236 | 17,610,516 |
| Business travel expenses | 9,925,103 | 6,371,021 |
| Entertainment fees | 20,105,592 | 10,976,482 |
| Vehicle use fee | 6,874,692 | 5,738,312 |
| Maintenance fee | 10,878,076 | 10,630,309 |
| Rental expenses | 11,665,203 | 7,252,265 |
| Insurance | 7,889,601 | 9,758,524 |
| Commission | 1,182,897 | 4,994,975 |
| Consulting fees | 5,050,890 | 5,151,892 |
| Others | 143,938,799 | 126,573,611 |
| Total | 246,776,634 | 279,873,718 |
(3)Other cash received related to investment activities
Unit: RMB
| Item | Occurred in current term | Occurred in previous term |
| Deposit | 26,124,986 | 198,380 |
| Income from trial production of construction in progress | 6,011,365 | 27,868,724 |
| Entrusted Loan | 300,000,000 | |
| Total | 32,136,351 | 328,067,104 |
(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 | 21,848,237 |
| Total | 6,911,853 | 21,848,237 |
(5)Other cash received related to financing activities
Unit: RMB
| Item | Occurred in current term | Occurred in previous term |
| Deposit | 298,227 | |
| Total | 298,227 |
(6)Other cash paid related to financing activities
Unit: RMB
| Item | Occurred in current term | Occurred in previous term |
| Equity incentive repurchase payment | 122,445,171 | |
| Payment for deposit and margin | 3,050,301 |
| Repay financing leases | 357,808,728 | |
| Other | 390,507 | 53,939 |
| Total | 390,507 | 483,358,139 |
54. 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 | 1,368,977,904 | 401,876,965 |
| Add: Provisions for assets impairment | 26,753,082 | -154,053 |
| Credit impairment loss | 2,524,048 | 2,961,920 |
| Depreciation of fixed assets | 448,555,136 | 430,017,802 |
| Depreciation of right-of-use assets | 471,792 | |
| Amortization of intangible assets | 31,383,145 | 26,914,457 |
| Amortization of long-term prepaid expenses | 163,410 | 821,736 |
| Losses on disposal of fixed assets intangible assets and other long-term assets (―- ―for gains) | -137,638 | 342,005 |
| Finance expenses (―- ―for gains) | 101,970,419 | 152,178,964 |
| Investment loss (―- ―for gains) | -3,672,330 | |
| Decrease in deferred tax assets (―- ―for increase) | -8,575,782 | -13,637,865 |
| Increase of deferred income tax liability (―- ―for decrease) | 3,118,860 | 2,760,569 |
| Decrease of inventory (―- ―for increase) | -236,251,630 | -220,040,002 |
| Decrease of operational receivable items (―- ―for increase) | -260,405,962 | -154,063,031 |
| Increase of operational payable items (―- ―for decrease) | 224,537,331 | 150,101,105 |
| Others | -1,166,410 | -436,183 |
| Net cash flow generated by business operation | 1,698,245,375 | 779,644,389 |
| 2. Net change of cash and cash equivalents | -- | -- |
| Balance of cash at period end | 1,647,672,831 | 3,071,655,971 |
| Less: Initial balance of cash | 2,124,028,196 | 1,831,835,030 |
| Net increasing of cash and cash equivalents | -476,355,365 | 1,239,820,941 |
(2) Formation of cash and cash equivalents
Unit: RMB
| Item | Closing balance | Opening balance |
| I. Cash | 1,647,672,831 | 2,124,028,196 |
| Incl: Cash on hand | 2,899 | 2,725 |
| Bank deposits that can be readily drawn on demand | 1,457,598,945 | 1,463,954,484 |
| Other cash balances that can be readily drawn on demand | 190,070,987 | 660,070,987 |
| II. Balance of cash and cash equivalents at the end of the period | 1,647,672,831 | 2,124,028,196 |
55. Assets with restricted ownership or use rights
Unit: RMB
| Item | Ending book value | Reason for restriction |
| Monetary assets | 1,760,707 | Restricted deposit flow |
| Fixed assets | 17,872,800 | Restricted mortgage loan |
| Total | 19,633,507 | -- |
56. 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 | -- | -- | 42,687,473 |
| Incl: HKD | 5,227,274 | 0.8321 | 4,349,614 |
| USD | 5,827,618 | 6.4601 | 37,646,995 |
| EUR | 19 | 7.6862 | 146 |
| JPY | 11,761,130 | 0.0584 | 686,850 |
| AUD | 797 | 4.8528 | 3,868 |
| Accounts receivable | 78,787,097 | ||
| Incl: HKD | 1,326,139 | 0.8321 | 1,103,480 |
| USD | 11,031,918 | 6.4601 | 71,267,293 |
| EUR | 834,785 | 7.6862 | 6,416,324 |
| Short-term borrowings | 646 | ||
| Incl: USD | 100 | 6.4601 | 646 |
| Accounts payable | 35,750,978 | ||
| Incl: HKD | 112,037 | 0.8321 | 93,226 |
| USD | 5,224,898 | 6.4601 | 33,753,364 |
| EUR | 222,216 | 7.6862 | 1,707,997 |
| JPY | 3,362,860 | 0.0584 | 196,391 |
| Contract liabilities | 26,826,039 | ||
| Incl: HKD | 6,217,181 | 0.8321 | 5,173,316 |
| USD | 3,351,614 | 6.4601 | 21,651,762 |
| EUR | 125 | 7.6862 | 961 |
57. Government subsidy
(1) Basic situation of government subsidies
Unit: RMB
| Type | Amount | Presentation project | Amount included in current profit and loss |
| Government subsidy amortization | 16,158,100 | Other income | 16,158,100 |
| Other government subsidies | 92,718,500 | Deferred income | |
| Other government subsidies | 20,395,704 | Other income | 20,395,704 |
| Total | 129,272,304 | 36,553,804 |
(2) Return of government subsidies
√Applicable □ Not applicable
Unit: RMB
| Item | Amount | Reason |
| TCO glass production base industrialization project | 15,028,336 |
VIII. The changes of consolidation scope
1. Changes in scope of consolidation for other reasons
On April 19, 2021, the Group set up a subsidiary, Xi'an CSG Energy-saving Glass Technology Co., Ltd. (hereinafter referred to as"Xi'an Energy-saving Company"). As of June 30, 2021, the Group had not contributed yet.The Group owns 100% of its equity.
On June 25, 2021, the Group established Anhui CSG Silicon Valley Mingdu Mining Development Co., Ltd. (referred to as "AnhuiMining Company"). As of June 30, 2021, the Group had not contributed yet.The Group owns 60% of its equity.
IX. Interest in other entities
1. Interest in subsidiary
(1) Composition of the Group
| Name of subsidiary | Major business location | Place of registration | Scope of business | Shareholding (%) | Way of acquicition | |
| Direct | Indirect | |||||
| Chengdu CSG | Chengdu, PRC | Chengdu, PRC | Development, production and sales of special glass | 75% | 25% | Establishment |
| Sichuan CSG Energy Conservation | Chengdu, PRC | Chengdu, PRC | Development, production and sales of special glass and processing of glass | 75% | 25% | Split-off |
| Tianjin Energy Conservation | Tianjin, PRC | Tianjin, PRC | Development, production and sales of special glass | 75% | 25% | Establishment |
| Dongguan CSG Engineering | Dongguan, PRC | Dongguan, PRC | Intensive processing of glass | 75% | 25% | Establishment |
| Dongguan CSG Solar | Dongguan, PRC | Dongguan, PRC | Production and sales of solar glass | 75% | 25% | Establishment |
| Dongguan CSG PV-tech | Dongguan, PRC | Dongguan, PRC | Production and sales of hi-tech green battery and components | 100% | Establishment | |
| Yichang CSG Polysilicon | Yichang, PRC | Yichang, PRC | Production and sales of high-purity silicon materials | 75% | 25% | Establishment |
| Wujiang CSG Engineering | Wujiang, PRC | Wujiang, PRC | Intensive processing of glass | 75% | 25% | Establishment |
| Hebei CSG | Yongqing, PRC | Yongqing, PRC | Production and sales of special glass | 75% | 25% | Establishment |
| Wujiang CSG | Wujiang, PRC | Wujiang, PRC | Production and sales of special glass | 100% | Establishment | |
| China Southern Glass (Hong Kong) | Hong Kong, PRC | Hong Kong, PRC | Investment holding | 100% | Establishment | |
| Hebei Shichuang | Yongqing, PRC | Yongqing, PRC | Production and sales of ultra-thin electronic glass | 100% | Establishment | |
| Xianning CSG | Xianning, PRC | Xianning, PRC | Production and sales of special glass | 75% | 25% | Establishment |
| Xianning CSG Energy-Saving | Xianning, PRC | Xianning, PRC | Intensive processing of glass | 75% | 25% | Split-off |
| Qingyuan CSG Energy-Saving | Qingyuan, PRC | Qingyuan, PRC | Production and sales of ultra-thin electronic glass | 100% | Establishment | |
| Shenzhen CSG Financial Leasing Co., Ltd. | Shenzhen, PRC | Shenzhen, PRC | Finance leasing, etc. | 75% | 25% | Establishment |
| Jiangyou CSG Mining Development Co., Ltd. | Jiangyou, PRC | Jiangyou, PRC | Production and sales of silica and its by-products | 100% | Establishment | |
| Shenzhen CSG PV Energy Co., Ltd. | Shenzhen, PRC | Shenzhen, PRC | Investment management of photovoltaic plant | 100% | Establishment | |
| Qingyuan CSG New Energy Co., Ltd. | Qingyuan, PRC | Qingyuan, PRC | Clean energy development, photovoltaic power generation | 100% | Establishment | |
| Suzhou CSG PV-tech Co., Ltd. | Wujiang, PRC | Wujiang, PRC | Clean energy development, photovoltaic power generation | 100% | Establishment | |
| Wujiang CSG New Energy Co., Ltd. | Wujiang, PRC | Wujiang, PRC | Clean energy development, photovoltaic power generation | 100% | Establishment | |
| Yichang CSG New Energy Co., Ltd | Yichang, PRC | Yichang, PRC | Clean energy development, photovoltaic power generation | 100% | Establishment | |
| Shenzhen CSG Display | Shenzhen, PRC | Shenzhen, PRC | Production and sales of display component products | 60.8% | Acquisition | |
| Xianning CSG Photoelectric | Xianning, PRC | Xianning, PRC | Photoelectric glass and high aluminium glass | 100% | 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 |
(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 2021 | Dividends distributed to minority interests for the year ended 30 June 2021 | Minority interest as at 30 June 2021 |
| Shenzhen CSG Display | 39.20% | 15,671,487 | 388,306,164 |
(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 | 245,824,959 | 1,392,976,463 | 1,638,801,422 | 535,730,360 | 56,375,022 | 592,105,382 |
| Opening balance | ||||||
| Current assets | Non-current assets | Total assets | Current liabilities | Non-current liabilities | Total liabilities | |
| 304,147,421 | 1,405,344,962 | 1,709,492,383 | 630,254,366 | 81,201,074 | 711,455,440 | |
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 | 378,092,939 | 46,313,955 | 46,313,955 | 57,269,209 | 212,884,437 | 25,080,790 | 25,080,790 | 61,513,296 |
2. Interests in joint ventures
| Company Name | Date of establishment | Registered capital (RMB 0,000) | Equity ratio | Relationship with the company |
| Yichang Nanxing Automotive Electronics Co., Ltd. | October 13, 2020 | 9,000 | 30.40% | Joint venture |
| Yichang Rongsheng New Material Co., Ltd. | October 19, 2020 | 500 | 39% | Joint venture |
As of June 30, 2021, the Group had not actually injected capital into the above associated enterprises.X. Risk related to financial instrumentThe Group's activities expose it to a variety of financial risks: market risk (primarily currency risk and interest rate risk), credit risk andliquidity risk. The Group's overall risk management programme focuses on the unpredictability of financial markets and seeks tominimise potential adverse effects on the Group's financial performance.
(1) Market risk
(a) Foreign exchange risk
The Group’s major operational activities are carried out in Mainland China and a majority of the transactions are denominated inRMB. However, some of the export business is settled in foreign currency. Besides, the Group is exposed to foreign exchange riskarising from the recognized assets and liabilities, and future transactions denominated in foreign currencies, primarily with respect toUS dollars and HKD. The Group monitors the scale of foreign currency transactions, foreign currency assets and liabilities, andadjusts settlement currency of export business, to furthest reduce the currency risk.
As at 30 June 2021, the carrying amounts in RMB equivalent of the Group’s assets and liabilities denominated in foreign currenciesare summarized below:
| 30 June 2021 | ||||
| USD | HKD | Others | Total | |
| Financial assets denominated in foreign currency | ||||
| Cash at bank and on hand | 37,646,995 | 4,349,614 | 690,864 | 42,687,473 |
| Receivables | 71,267,293 | 1,103,480 | 6,416,324 | 78,787,097 |
| Total | 108,914,288 | 5,453,094 | 7,107,188 | 121,474,570 |
| Financial liabilities denominated in foreign currency | ||||
| Short-term borrowings | 646 | 646 | ||
| Payables | 33,753,364 | 93,226 | 1,904,388 | 35,750,978 |
| Total | 33,754,010 | 93,226 | 1,904,388 | 35,751,624 |
| 31 December 2020 | ||||
| USD | HKD | Others | Total | |
| Financial assets denominated in foreign currency | ||||
| Cash at bank and on hand | 16,599,430 | 5,997,799 | 1,109,657 | 23,706,886 |
| Receivables | 84,333,333 | 1,392,919 | 6,699,153 | 92,425,405 |
| Total | 100,932,763 | 7,390,718 | 7,808,810 | 116,132,291 |
| Financial liabilities denominated in foreign currency | ||||
| Short-term borrowings | 63,120,000 | 63,120,000 | ||
| Payables | 47,632,226 | 3,868,806 | 4,443,735 | 55,944,767 |
| Total | 47,632,226 | 66,988,806 | 4,443,735 | 119,064,767 |
As at 30 June 2021, if the currency had strengthened/weakened by 10% against the USD while all other variables had been heldconstant, the Group’s net profit for the year would have been approximately RMB 6,388,624 lower/higher (31 December 2020:
approximately RMB 4,530,546 lower/higher) for various financial assets and liabilities denominated in USD.
Other changes in exchange rate had no significant influence on the Group's operating activities.
(b) Interest rate risk
The Group's interest rate risk arises from long-term interestbearing borrowings including long-term borrowings and bonds payable.Financial liabilities issued at floating rates expose the Group to cash flow interest rate risk. Financial liabilities issued at fixed ratesexpose the Group to fair value interest rate risk. The Group determines the relative proportions of its fixed rate and floating ratecontracts depending on the prevailing market conditions. As at 30 June 2021, the Group’s long-term interest-bearing debt at variablerates and fixed rates as illustrated below:
| Type | 30 June 2021 | 31 December 2020 |
| Debt at fixed rates | 2,357,285,920 | 2,105,274,331 |
| Debt at variable rates | 828,555,276 | 742,000,000 |
| Total | 3,185,841,196 | 2,847,274,331 |
The Group continuously monitors the interest rate position of the Group. Increases in interest rates will increase the cost of newborrowing and the interest expenses with respect to the Group’s outstanding floating rate borrowings, and therefore could have amaterial adverse effect on the Group’s financial position. The Group makes adjustments timely with reference to the latest marketconditions, which includes increasing/decreasing long-term fixed rate debts at the anticipation of increasing/decreasing interest rate.
(2) Credit risk
Credit risk is managed on the grouping basis. Credit risk mainly arises from cash at bank, notes receivable, accounts receivable, otherreceivables.
The Group expects that there is no significant credit risk associated with cash at bank since they are mainly deposited at state-ownedbanks and other medium or large size listed banks. Management does not expect that there will be any significant losses fromnon-performance by these counterparties. Furthermore, as the Group’s bank acceptance notes receivable are generally accepted bythe state-owned banks and other large and medium listed banks, management believes the credit risk should be limited.
In addition, the Group has policies to limit the credit exposure on accounts receivable, other receivables and trade acceptance notesreceivable. The Group assesses the credit quality of and sets credit limits on its customers by taking into account their financialposition, the availability of guarantee from third parties, their credit history and other factors such as current market conditions. Thecredit history of the customers is regularly monitored by the Group. In respect of customers with a poor credit history, the Group willuse written payment reminders, or shorten or cancel credit periods, to ensure the overall credit risk of the Group is limited to acontrollable extent.
(3) Liquidity risk
Cash flow forecasting is performed by each subsidiary of the Group and aggregated by the Group’s finance department in itsheadquarters. The Group’s finance department at its headquarters monitors rolling forecasts of the Group's short-term and long-termliquidity requirements to ensure it has sufficient cash reserve, while maintaining sufficient headroom on its undrawn committedborrowing facilities from major financial institutions so that the Group does not breach borrowing limits or covenants on any of itsborrowing facilities to meet the short-term and long-term liquidity requirements.
The management intends to take the following measures to ensure that the group's liquidity risk is within a controllable range.
(a) The Group will have steady cash inflows from operating activities;(b) The Group will pay the debts that mature and finance the construction projects through the existing bank facilities;(c) The Group will closely monitor the payment of construction expenditure in terms of payment time and amount.
The financial liabilities of the Group at the balance sheet date are analysed by their maturity date below at their undiscountedcontractual cash as follows:
| 30 June 2021 | |||||
| Within 1 year | 1 to 2 years | 2 to 5 years | Over 5 years | Total | |
| Short-term borrowings | 318,162,276 | 318,162,276 | |||
| Notes payable | 304,710,352 | 304,710,352 | |||
| Accounts payable | 1,242,148,009 | 1,242,148,009 | |||
| Other payables | 233,274,223 | 233,274,223 | |||
| Other current liabilities | 32,329,042 | 32,329,042 | |||
| Non-current liabilities due within one year | 138,831,418 | 138,831,418 | |||
| Long-term borrowings | 46,088,172 | 715,895,293 | 526,921,195 | 1,288,904,660 | |
| Bonds payable | 120,000,000 | 2,087,741,935 | 2,207,741,935 | ||
| Total | 2,435,543,492 | 2,803,637,228 | 526,921,195 | 5,766,101,915 | |
| 31 December 2020 | ||||||
| Within 1 year | 1 to 2 years | 2 to 5 years | Over 5 years | Total | ||
| Short-term borrowings | 357,872,322 | 357,872,322 | ||||
| Notes payable | 144,851,192 | 144,851,192 | ||||
| Accounts payable | 1,237,833,051 | 1,237,833,051 | ||||
| Other payables | 287,332,992 | 287,332,992 | ||||
| Other current liabilities | 34,586,292 | 34,586,292 | ||||
| Non-current liabilities due within one year | 951,180,309 | 951,180,309 | ||||
| Long-term borrowings | 32,663,037 | 731,295,181 | 154,771,873 | 918,730,091 | ||
| Bonds payable | 120,000,000 | 120,000,000 | 2,027,741,935 | 2,267,741,935 | ||
| Total | 3,166,319,195 | 851,295,181 | 2,182,513,808 | 6,200,128,184 | ||
XI. Disclosure of fair value
1. The ending fair value of assets and liabilities measured at fair value
Based on the lowest level input that is significant to the fair value measurement in its entirety, the fair value hierarchy has thefollowing levels:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or
indirectly.Level 3: Unobservable inputs for the asset or liability.(a) Assets continuously measured at fair valueBy June30, 2021, the Group’s using assets and liabilities measured at fair value are listed three levels as followings:
| 30 June 2021 | ||||
| Level 1 | Level 2 | Level 3 | Total | |
| Measured at fair value through other comprehensive income | ||||
| Receivables Financing | 444,025,966 | 444,025,966 | ||
| Investment property | 383,084,500 | 383,084,500 | ||
| Total | 827,110,466 | 827,110,466 | ||
(b) Assets and liability that not measured but disclosed at fair valueThe group’s financial assets and financial liabilities measured at amortized cost mainly include: accounts receivable, short-termborrowings, accounts payable, long term borrowings, bonds payable, long-term payables, ect.Except for financial liabilities listed below, book value of the other financial assets and liabilities not measured at fair value is areasonable approximation of their fair value.
| 30 June 2021 | 31 December 2020 | |||
| Carrying amount | Fair value | Carrying amount | Fair value | |
| Financial liabilities | ||||
| Medium term notes | 800,000,000 | 803,364,000 | ||
| Corporate bonds | 1,995,284,179 | 2,002,974,000 | 1,994,020,348 | 1,987,041,277 |
| Total | 1,995,284,179 | 2,002,974,000 | 2,794,020,348 | 2,790,405,277 |
The fair values of corporate bonds and medium-term notes are the present value of the contractually determined stream of future cashflows at the rate of interest applied at that time by the market to instruments of comparable credit status and providing substantiallythe same cash flows on the same terms, and corporate bonds belongs to Level 2.XII. Related party and related Transaction
1. Information of the parent company
The Company regards no entity as the parent company.
2. 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 |
| Shenzhen Jushenghua Co., Ltd. | Party acting in concert of the Company's largest shareholder |
| Foresea Life Insurance Co., Ltd. | The Company's largest shareholder |
| Xinjiang Qianhai United Property Insurance Co., Ltd. | Related parties of the person acting in concert of the Company's largest shareholder |
| Suzhou Baoqi Logistics Co., Ltd. | Related parties of the person acting in concert 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 | Amount incurred in the previous period |
| Suzhou Baoqi Logistics Co., Ltd. | Acceptance of labor services | 5,247,713 | |
| Other related parties | Purchase of goods | 2,428,018 | |
| Total | 7,675,731 |
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 | 12,118,000 |
| Other related parties | Sales of goods | 559,600 | 6,222,400 |
| Total | 560,100 | 18,340,400 |
Note: Other related parties include many companies, and the amount is scattered, so they are listed in combination.
(2) Purchase insurance
Unit: RMB
| Related party | Related party transactions | Amount incurred in the current period | Amount incurred in the previous period |
| Foresea Life Insurance Co., Ltd. | Purchase life insurance | 1,224,197 | 1,903,094 |
| Xinjiang Qianhai United Property Insurance Co., Ltd. | Purchase auto insurance and property insurance | 84,149 | 178,374 |
| Total | 1,308,346 | 2,081,468 |
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 | |
| Shenzhen Qianhai Liandongyun Car Rental Co., Ltd. | 54,000 | 1,080 | ||
| Other related parties | 3,600 | 72 | 223,200 | 4,464 |
| Total | 57,600 | 1,152 | 223,200 | 4,464 |
(2) Payables
| Related party | Closing book balance | Opening book balance |
| Suzhou Baoqi Logistics Co., Ltd. | 3,166,829 | 2,617,344 |
| Total | 3,166,829 | 2,617,344 |
7. Commitment of related parties
□ Applicable √ Not applicable
XIII. Commitments and contingencies
1. Significant commitments
(1) Capital commitments
Capital expenditures contracted for by the Group at the balance sheet date but are not yet necessary to be recognized on the balancesheet are as follows:
| Item | 30 June 2021 | 31 December 2020 |
| Buildings, machinery and equipment | 2,183,985,008 | 552,259,223 |
(2) Operating lease commitments
The future minimum lease payments due under the signed irrevocable operating leases contracts are summarized as follows:
| 30 June 2021 | 31 December 2020 | |
| Within 1 year | 6,548,841 | 7,813,728 |
| 1 to 2 years | 1,278,028 | 541,288 |
| 2 to 3 years | 477,816 |
| Total | 8,304,685 | 8,355,016 |
XIV. Other important matters
1. Segment information
(1) Definition foundation and accounting policy of segment
The Group's business activities are categorised by product and service as follows:
Glass segment, engaged in production and sales of float glass and engineering glass and other building energy - saving materials, thesilica for the production thereof, etc.Solar energy segment, engaged in manufacturing and sales of polysilicon and solar battery and applications, etc.Electronic glass and display segment is responsible for production and sales of display components and special ultra-thin glassproducts, etc.
The reportable segments of the Group are the business units that provide different products or service. Different businesses requiredifferent technologies and marketing strategies. The Group, therefore, separately manages the production and operation of eachreportable segment and Estimates their operating results respectively, in order to make decisions about resources to be allocated tothese segments and to assess their performance.
Inter-segment transfer prices are measured by reference to selling prices to third parties.
The assets are allocated based on the operations of the segment and the physical location of the asset. The liabilities are allocatedbased on the operations of the segment. Expenses indirectly attributable to each segment are allocated to the segments based on theproportion of each segment’s revenue.
(2)Financial information of segment
Unit: RMB
| Item | Glass industry | Electronic glass and display | Solar energyand other industries | Unallocated | Elimination | Total |
| Revenue from external customers | 5,322,998,745 | 878,276,652 | 413,344,356 | 182,785 | 6,614,802,538 | |
| Inter-segment revenue | 29,578,235 | 2,611,456 | 27,109,441 | 42,470,064 | - 101,769,196 | |
| Interest income | 1,560,878 | 381,279 | 102,225 | 17,980,465 | 20,024,847 | |
| Interest expenses | 1,043,753 | 6,590,813 | -8,940 | 94,371,623 | - 26,830 | 101,970,419 |
| Asset impairment losses | 26,753,082 | 26,753,082 |
| Credit impairment loss | 2,546,188 | 42,069 | -73,682 | 9,473 | 2,524,048 | |
| Depreciation and amortization expenses | 303,315,122 | 113,734,222 | 60,032,838 | 3,491,301 | 480,573,483 | |
| Total profit | 1,523,058,899 | 260,561,952 | - 10,198,984 | - 149,163,673 | 1,624,258,194 | |
| Income tax expenses | 221,827,221 | 35,978,878 | - 826,977 | - 1,698,832 | 255,280,290 | |
| Net profit | 1,301,231,678 | 224,583,074 | - 9,372,007 | - 147,464,841 | 1,368,977,904 | |
| Total assets | 8,877,884,979 | 3,770,358,832 | 4,067,923,562 | 1,846,934,257 | 18,563,101,630 | |
| Total liabilities | 2,542,266,265 | 668,947,088 | 271,254,713 | 3,402,684,904 | 6,885,152,970 | |
| Increase in non current assets | 499,420,148 | 34,666,192 | 8,444,928 | 129,078 | 542,660,346 |
(3) Other statement
The Group’s revenue from external customers domestically and in foreign countries or geographical areas, and the total non-currentassets other than financial assets and deferred tax assets located domestically and in foreign countries or geographical areas are asfollows:
| Revenue from external customers | Jan.-Jun. 2021 | Jan.-Jun. 2020 |
| Mainland | 5,993,997,205 | 3,862,784,501 |
| Overseas | 620,805,333 | 561,436,848 |
| Total | 6,614,802,538 | 4,424,221,349 |
| Total non-current assets | 30 June 2021 | 31 December 2020 |
| Mainland | 12,946,829,944 | 12,652,550,312 |
| Hong Kong | 12,433,408 | 12,463,605 |
| Total | 12,959,263,352 | 12,665,013,917 |
2. Other important transactions and matters that have an impact on investors' decisions
□Applicable √ Not applicable
XV. Notes to Financial Statements of the Parent Company
1. Other receivables
Unit: RMB
| Item | Ending book balance | Beginning book balance |
| Interest receivable | 112,611 | |
| Dividends receivable | 249,087,257 | |
| Other receivables | 3,402,452,584 | 3,554,821,112 |
| Total | 3,402,565,195 | 3,803,908,369 |
(1) Interest receivable
1) Classification of interest receivable
Unit: RMB
| Nature of accounts | Ending book balance | Beginning book balance |
| Interest receivable | 112,611 | |
| Total | 112,611 |
(2) Classification of dividends receivable
| Project (or investee) | Closing balance | Opening balance |
| Dividends receivable from subsidiaries | 249,087,257 | |
| Total | 249,087,257 |
(3)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 | 3,230,505,957 | 3,383,284,639 |
| Others | 177,007,810 | 176,588,183 |
| Total | 3,407,513,767 | 3,559,872,822 |
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 2021 | 3,500,744 | 1,550,966 | 5,051,710 | |
| Balance on1 January 2021 in current period | —— | —— | —— | —— |
| --Transferred to the |
| Phase II | ||||
| --Transferred to the Phase III | ||||
| -- Transferred back to the Phase II | ||||
| -- Transferred back to the Phase I | ||||
| Withdrawal | 9,473 | 9,473 | ||
| Recovery | ||||
| Write-off | ||||
| Verification | ||||
| Other changes | ||||
| Balance on 30 June 2021 | 3,510,217 | 1,550,966 | 5,061,183 |
3) Disclosure by aging
Unit: RMB
| Aging | Closing balance |
| Within 1 year (including 1 year) | 3,232,299,734 |
| Over 1 year | 175,214,033 |
| Total | 3,407,513,767 |
4) Provision for bad debts accrued, recovered or reversed in the current periodProvision for bad debts:
Unit: RMB
| Category | Opening balance | Amount of change in the current period | Closing balance | |||
| Provision | Collect or reversal | Write-off | Others | |||
| Provision for bad debts by portfolio | 5,051,710 | 9,473 | 5,061,183 | |||
| Total | 5,051,710 | 9,473 | 5,061,183 | |||
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 |
| CSG Technology | Subsidiary | 754,757,255 | Within 1 year | 22% | |
| Shenzhen CSG Display | Subsidiary | 386,042,771 | Within 1 year | 11% | |
| Qingyuan CSG Energy-saving | Subsidiary | 361,938,627 | Within 1 year | 11% | |
| Dongguan CSG PV-tech | Subsidiary | 217,211,159 | Within 1 year | 6% | |
| China Southern Glass (Hong Kong) | Subsidiary | 214,438,085 | Within 1 year | 6% | |
| Total | -- | 1,934,387,897 | -- | 56% |
2. Long-term equity investment
Unit: RMB
| Item | Closing balance | Opening balance | ||||
| Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
| Investment in subsidiaries | 6,189,306,870 | 15,000,000 | 6,174,306,870 | 5,859,507,870 | 15,000,000 | 5,844,507,870 |
| Total | 6,189,306,870 | 15,000,000 | 6,174,306,870 | 5,859,507,870 | 15,000,000 | 5,844,507,870 |
(1) Investment in subsidiaries
Unit: RMB
| Invested company | Opening balance (book value) | Increase and decrease in the current period | Closing balance (book value) | Closing balance of provision for impairment | |||
| Additional investment | Reducing investment | Provision for impairment | Others | ||||
| Chengdu CSG Glass Co., Ltd. | 151,397,763 | 151,397,763 | |||||
| Sichuan CSG Energy Conservation | 119,256,949 | 119,256,949 | |||||
| Tianjin Energy Conservation Glass Co., Ltd. | 247,833,327 | 247,833,327 | |||||
| Dongguan CSG Architectural Glass Co., Ltd. | 198,276,242 | 198,276,242 | |||||
| Dongguan CSG Solar Glass Co., Ltd. | 355,120,247 | 355,120,247 | |||||
| Yichang CSG Polysilicon Co., Ltd. | 640,856,170 | 640,856,170 | |||||
| Wujiang CSG North-east | 254,401,190 | 254,401,190 | |||||
| Architectural Glass Co., Ltd. | |||||||
| 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 CSG PV Energy Co., Ltd. | 100,335,176 | 100,335,176 | |||||
| Shenzhen Nanbo Display Technology Co., Ltd. | 550,765,474 | 550,765,474 | |||||
| Zhaoqing CSG Energy-Saving Glass Co., Ltd. | 129,701,000 | 20,299,000 | 150,000,000 | ||||
| Zhaoqing CSG Automobile Glass Co., Ltd. | 43,201,000 | 12,500,000 | 55,701,000 | ||||
| Dongguan CSG PV-tech Co., Ltd. | 382,112,183 | 382,112,183 | |||||
| Anhui CSG New Energy Materials | 20,000,000 | 280,000,000 | 300,000,000 | ||||
| Anhui CSG New Quartz material | 3,000,000 | 17,000,000 | 20,000,000 | ||||
| Shenzhen CSG Medical | 20,000,000 | 20,000,000 | |||||
| Others | 253,892,197 | 253,892,197 | 15,000,000 | ||||
| Total | 5,859,507,870 | 329,799,000 | 6,189,306,870 | 15,000,000 |
3. Operating income and operating costs
Unit: RMB
| Item | Occurred in this term | Occurred in previous term | ||
| Income | Costs | Income | Costs | |
| Other business | 42,342,857 | 37,484,754 | ||
| Total | 42,342,857 | 37,484,754 | ||
4. Investment income
Unit: RMB
| Item | Occurred in this term | Occurred in previous term |
| Long-term equity investment accounted by cost method | 715,020,699 | 703,591,508 |
| Investment income of trading financial assets during the holding period | 2,858,476 | |
| Fixed deposit income | 596,4677 | |
| Total | 718,475,642 | 703,591,508 |
XVI. Supplementary Information
1. Items and amounts of extraordinary profit (gains)/loss
√Applicable □Not applicable
Unit: RMB
| Item | Amount | Note |
| Gains/losses from the disposal of non-current asset (including the write-off that accrued for impairment of assets) | 137,638 | |
| 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) | 34,784,072 | |
| In addition to the effective hedging business related to the normal business of the company, the profit and loss from changes in fair value arising from the holding of trading financial assets, derivative financial assets, trading financial liabilities and derivative financial liabilities, as well as the investment income from the disposal of trading financial assets, derivative financial assets, trading financial liabilities, derivative financial liabilities and other creditor's rights investments | 3,672,330 | |
| Other non-operating income and expenditure except for the aforementioned items | -8,910,187 | |
| Less: Impact on income tax | 5,384,885 | |
| Impact on minority shareholders’ equity (post-tax) | 1,596,031 | |
| Total | 22,702,937 | -- |
Explain reasons for the extraordinary profit (gain)/loss defined by Q&A Announcement No.1 on Information Disclosure forCompanies Offering Their Securities to the Public --- Extraordinary Profit/loss, and the items defined as recurring profit (gain)/lossaccording to the lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for CompaniesOffering Their Securities to the Public --- Extraordinary Profit/loss.
□Applicable √ Not applicable
2. Return on net assets and earnings per share
| Profit in the report period | The weighted average net assets ratio | Earnings per share | |
| Basic earnings per share (RMB/share) | Diluted earnings per share (RMB/share) | ||
| Net profit attributable to ordinary shareholders of the Company | 12.60% | 0.44 | 0.44 |
| Net profit attributable to ordinary shareholders of the Company after deducting non-recurring gains and losses | 12.39% | 0.43 | 0.43 |
3. Difference of accounting data under domestic and overseas accounting standards
(1) Differences of the net profit and net assets disclosed in financial report prepared under internationaland Chinese accounting standards
□ Applicable √ Not applicable
(2) Difference of the net profit and net assets disclosed in financial report prepared under overseas andChinese accounting standards
□ Applicable √ Not applicable
Board of Directors ofCSG Holding Co., Ltd.27 August 2021