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南玻B:2017年半年度报告(英文版)(更新后) 下载公告
公告日期:2018-08-25

CSG HOLDING CO., LTD.

SEMI-ANNUAL REPORT 2017

Chairman of the Board:

CHEN LIN

August 2017

Section I Important Notice, Content and Paraphrase

Board of Directors and the Supervisory Committee of CSG Holding Co., Ltd. (hereinafter referredto as the Company) and its directors, supervisors and senior executives hereby confirm that thereare no any fictitious statements, misleading statements, or important omissions carried in this report,and shall take all responsibilities, individual and/or joint, for the facticity, accuracy andcompleteness of the whole contents.Ms. Chen Lin, Chairman of the Board, Mr. Pan Yonghong, responsible person in charge ofaccounting and Ms.Wang Wenxin, principal of the financial department (accounting officer)confirm that the Financial Report enclosed in the semi-annual report of the Company is true,accurate and complete.All directors were present the meeting of the Board for deliberating the semi-annual report of theCompany in person.This report involves futures plans and some other forward-looking statements, which shall not beconsidered as virtual promises to investors. Investors are kindly reminded to pay attention topossible risks.Existing risk of staff loss, industry risk, market risk and exchange rate risk have beenwell-described in this report, please found details of the risk factors and countermeasures of futuredevelopment described in Section IV Discussion and Analysis of the Management.The Company has no plans of cash dividend distribution, bonus shares being sent or convertingcapital reserve into share capital.This report is prepared both in Chinese and English. Should there be any inconsistency between theChinese and English versions, the Chinese version shall prevail.

Content

Section I. Important Notice, Content and Paraphrase ...................................................................................... 1

Section II. Company Profile & Financial Highlights ......................................................................................... 4

Section III. Overview of the Company’s Business ............................................................................................. 7

Section IV. Performance Discussion and Analysis ......................................................................................... 10

Section V. Important Events .............................................................................................................................. 23

Section VI. Changes in Shares and Particulars about Shareholders ............................................................. 33

Section VII. Particulars about Directors, Supervisors and Senior Executives .............................................. 39

Section VIII. Corporate Bonds .......................................................................................................................... 41

Section IX. Financial Report ............................................................................................................................. 46

Section X. Documents Available for Reference .............................................................................................. 138

Paraphrase

ItemsRefers toContents
Company, the Company, CSG or the GroupRefers toCSG Holding Co., Ltd.
Ultra-thin electronic glassRefers toThe electronic glass with thickness between 0.1~1.1mm
Second-generation energy-saving glassRefers toDouble silver coated glass
Third-generation energy-saving glassRefers toTriple Silver coated glass

Section II. Company Profile & Financial Highlights

I. Company Profile

Short form of the stockSouthern Glass A、Southern Glass BStock code000012、200012
Listing stock exchangeShenzhen 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 CompanyCSG Holding Co., Ltd.
Abbr. of legal English name of the CompanyCSG
Legal RepresentativeChen Lin

II. Person/Way to contact

Secretary of the Board
NameYang Xinyu
Contact addressCSG Building, No.1 of the 6th Industrial Road, Shekou, Shenzhen, P. R.C.
Tel.(86)755-26860666
Fax.(86)755-26860685
E-mailsecurities@csgholding.com

III. Other information

1. Way of contact

Whether registered address, office address and their postal codes, website address and email address of the Company changed in thereport period or not

□ Applicable √Not applicable

The registered address, office address and their postal codes, website address and email address of the Company did not change inthe report period. More details can be found in Annual Report 2016.

2. Information disclosure and preparation place

Whether information disclosure and preparation place changed in the report period or not

√ Applicable □ Not applicable

Newspapers for information disclosureSecurities Times, China Securities Journal, ShangHai Securities News and Hong Kong Comercial Daily
Website assigned by CSRC to release thewww.cninfo.com.cn
semi-annual report
The place for preparation of the semi-annual reportOffice of Board of Directors
The query date of the designated website for the disclosure of interim announcements (if applicable)
The query index of the designated website for the disclosure of interim announcements (if applicable)

The newspapers designated by the Company for information disclosure, the website designated by CSRC for disclosing semi-annualreport and preparation place of semi-annual report did not change in the report period. More details can be found in Annual Report2016.

IV. Main accounting data and financial indexes

Whether it has retroactive adjustment or re-statement on previous accounting data for accounting policy changed and accountingerror correction or not

□Yes √ No

The report period (Jan. to Jun.2017)The same period of last yearIncrease/decrease year-on-year (%)
Operating income (RMB)4,944,337,8614,228,165,64216.94%
Net profit attributable to shareholders of the listed company(RMB)392,992,163466,883,254-15.83%
Net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses(RMB)360,945,244423,523,383-14.78%
Net cash flow arising from operating activities(RMB)1,019,889,4541,046,720,349-2.56%
Basic earnings per share (RMB/Share)0.190.22-13.64%
Diluted earnings per share (RMB/Share)0.190.22-13.64%
Weighted average ROE (%)4.94%5.99%Decreased by1.05 percentage points
End of this periodEnd of last yearIncrease/decrease in this period-end over that of last year-end (%)
Total assets (RMB)17,930,281,61316,979,235,6305.60%
Net assets attributable to shareholder of listed company (RMB)8,083,359,3147,812,335,0043.47%

V. Difference of accounting data under domestic and overseas accounting standards

1. Differences of the net profit and net assets disclosed in financial report prepared under international andChinese accounting standards

□ Applicable √ Not applicable

No such differences in the report period.

2. Difference of the net profit and net assets disclosed in financial report prepared under overseas andChinese accounting standards

□ Applicable √ Not applicable

No such differences in the report period.

VI. Items and amounts of extraordinary profit (gains)/loss

√Applicable □ Not applicable

Unit: RMB

ItemAmountNote
Gains/losses from the disposal of non-current asset (including the write-off that accrued for impairment of assets)-71,756--
Governmental subsidy reckoned into current gains/losses (not including the subsidy enjoyed in quota or ration according to national standards, which are closely relevant to enterprise’s business)38,501,199--
Other non-operating income and expenditure except for the aforementioned items541,795--
Less: Impact on income tax5,814,362--
Impact on minority shareholders’ equity (post-tax)1,109,957--
Total32,046,919--

Explain reasons for the extraordinary profit (gain)/loss defined by Q&A Announcement No.1 on Information Disclosure forCompanies Offering Their Securities to the Public --- Extraordinary Profit/loss, and the items defined as recurring profit (gain)/lossaccording to the lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for CompaniesOffering Their Securities to the Public --- Extraordinary Profit/loss

□Applicable √Not applicable

It did not exist that items defined as recurring profit (gain)/loss according to the lists of extraordinary profit (gain)/loss in Q&AAnnouncement No.1 on Information Disclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss.

Section III Overview of the Company’s Business

I. Main business of the Company in the report period

Whether the Company needs to comply with the disclosure requirements of the particular industryNoCSG is the No.1 brand of energy-saving glass at home and a renowned brand of solar PV products and display devices. Its productsand technologies are very popular at home and abroad. Its main business covers R&D, manufacturing and sales of high quality floatglass and architectural glass, solar glass, silicon material, renewable energy products such as PV battery and modules, and newmaterials and information display products such as ultra-thin electronic glass and display devices. It also provides one-stop servicessuch as project development, construction, operation and maintenance of solar photovoltaic power plants.

Flat glass industry

CSG now has 10 float glass production lines representing the most advanced technology in domestic market and 2 solar rolled glassproduction lines. The annual capacity of various high-grade float glass has reached approximately 2.4 million tons and the annualcapacity of solar rolled glass has reached approximately 0.5 million tons. The Company owns quartz sand raw material bases inJiangyou, Sichuan Province and Yingde, Guangdong Province. The production bases for flat glass, solar glass and ultra-thin glass ofthe Company located in Dongguan, Chengdu, Langfang, Wujiang, Xianning, and Yichang, which can produce various colors ofhigh-grade float glass with thickness from 1.1mm to 25mm and ultra-clear float glass. Those products are widely used in high-gradebuildings, decoration and furniture, mirror, automotive windshield, scanner, copier, PDP TV, rear-projection television, displaydevices and solar energy field, each performance indicator of which has reached domestic advanced level.The Company always adheres to innovation, transformation and upgrading, and further enhances the profitability of flat glassindustry by the implementation of differentiated competitive strategy. In 2016, the second-line technological transformation projectof the subsidiary Hebei CSG was successfully completed. The original float glass production line was transformed into a structurewith one melter and two production lines, which can simultaneously produce two types of float glass to satisfy differentspecifications and requirements and thus significantly improve the flexibility of production line. The first-line technologicaltransformation product of its subsidiary Chengdu CSG has been formally started, which is targeted to produce high quality auto glass.It has put into operation in Feb. 2017. The technology transformation and operation of such two production lines of float gloss shallfurther improve the competency of CSG in the market of flat glass.

Architectural glass industry

As the nation's largest supplier of high-grade engineering and architectural glass, CSG has five architectural and energy-saving glassprocessing centers which are located in Tianjin, Dongguan, Xianning, Wujiang and Chengdu. The Company possesses the world'smost advanced glass deep-processing equipment and testing instruments, and its products cover all kinds of architectural glass. R&D

and use of coating technology of the Company keep pace with the world and its technology of high end product is even of the world’sleading level. Following the second generation of energy-saving glass products, the Company has successively developed the third

generation and multi-function energy-saving glass products with continuous improving energy-saving and heat-preservation effect.Its high-quality energy-saving LOW-E insulating glass has occupied more than 40% of the domestic high-end market. At present, theCompany has 14 coated glass production lines, with an annual output of 30 million square meters of Low-E, thermal reflective coatedglass; 46 insulating glass production line, with an annual output of 10 million square meters of insulating glass; 39 glass productionline, with an annual output of 25 million square meters of toughtened glass.

The Company’s quality management system for engineering and architectural glass has been respectively approved by organizations

of UK AOQC and Australia QAS. The product quality which meets the national standards of the US, the UK and Australia enablesCSG frequently win in the international tendering and bidding. Since 1988, CSG's engineers and technicians have been continuouslyparticipating in the formulation and compilation of various national standards and industry standards. Various high-qualityarchitectural glass of the Company has been used in many landmark buildings at home and abroad, such as Beijing CapitalInternational Airport, CCTV, Shanghai Oriental Fisherman's Wharf, Shenzhen KingKey100 Building, Ping An International FinanceCentre, Hangzhou International Airport, Chengdu International Finance Centre, Hong Kong Four Seasons Hotel, Hilton Hotel atMelbourne Airport, Tokyo Tallest Building, International Centre of Abu Dhabi.

Solar Energy PV Business

With its stable quality management, strong cost control and outstanding technological innovations, CSG has built a complete industrychain covering high purity polycrystalline silicon materials, silicon wafer, silicon solar cell and modules, and design and constructionof solar photovoltaic power plants, by which the Company ensures the stable quality and best cost-efficiency of its PV products tocustomers.The Company now produces 8,000 ton/year of polycrystalline silicon, 1.5 GW/year of silicon wafer, 0.75GW/year of solar cell, and0.15GW/year of modules. Under the favorable domestic market outlook of solar PV products, the Company is further exploiting itspotential, and upgrading and reconstructing its existing lines of polycrystalline silicon with the purpose of increasing the totalproduction of polycrystalline silico to above 9,000 ton/year. Meanwhile, the Company is also promoting the newly-added siliconwafer project of Yichang CSG Polysilicon Co. and the PV cell line expansion project in Dongguan in order to enhance the anti-riskcapacity of its PV industry chain and drive the balanced, fast and healthy development of its PV industry chain. When the projects arecompleted, the Company's production of silicon wafers and silicon solar cells will be greatly increased and the generalcompetitiveness of the chain will be further improved.To perfect its solar energy chain, the Company established Shenzhen CSG PV Energy Co., Ltd., a wholly-owned subsidiary, in 2015,of which the mainline business is to invest and develop solar photovoltaic power plants and extend CSG's solar energy industry tocover highly value-added terminal applications. At the end of 2016, the Company newly established New Energy ApplicationDepartment to generally manage the investment, operation and maintenance of the Company's PV power plants and effectivelyintegrate internal assets, so as to enlarge and strengthen its solar energy business.

Electronic glass and display business

The Company has built two complete chains of full-set out-cell touch panel from raw material, processing to touch panel integrationmodule with its more than ten years of experience since 2000 when it established Shenzhen Nanbo Display Technology Co., Ltd. One

is "ultra-thin glass bed penal preparation → glass coating → glass yellow light → glass modules", and the other is "PET coating →film yellow light → film module. Its production capacity covers ultra-thin float glass preparation, glass coating, glass pattern

processing, glass touch panel module, flexible material filming, flexible material pattern processing, and full lamination of flexibletouch panel display, making it the only one company that holds a complete industry chain from ultra-thin float glass production toultra-thin sensor processing and ultra-thin touch panel module assembly to achieve high definition display and ultra-narrow edgetouch panel solutions. In 2016, the Company acquired 16.10% of the equity of Shenzhen Nanbo Display Technology Co., Ltd. andre-control of it.Furthermore, the Company, with its more than 20 years of experience in float glass production and powerful technology andinnovation team, entered the ultra-thin electronic glass market in 2010 and finished its strategic deployment across the country withthree electronic glass bases in Langfang, Hebei Province in North China, Yichang, Hubei Province in Central China, and Qingyuan,Guangdong Province in South China. The products can be as thin as 0.2mm-1.1mm, covering a range from normal soda-lime glass tomedium-aluminum, ultra-clear, ultra-thin, and high-aluminum glass, which are widely used in tempered glass films, cover glass, andITO conductive glass.The Company further integrated its ultra-thin electronic glass business with display business and established the electronic glass anddisplay department in 2016, which incorporated the subsidiaries of ultra-thin electronic glass and display, and actively boosted the

development and production of its middle and high-end products as well as new products according to market conditions.

II. Major changes in main assets

1. Details of major changes in main assets

Main assetsNote of major changes
Equity assetsThere was no significant change in equity assets in the report period.
Fixed assetsThere was no significant change in fixed assets in the report period.
Intangible assetsThere was no significant change in intangible assets in the report period.
Construction in progressThere was no significant change in construction in progress in the report period.

2. Main overseas assets

□ Applicable √ Not applicable

III. Core Competitiveness Analysis

Whether the Company needs to comply with the disclosure requirements of the particular industryNo

① The Company currently has built complete industrial chains in the industries it involved, which has complementary advantage. Inglass industry, the Company has set up the industry chain as quartz sand → high quality float glass → architectural energy-saving

glass. In the solar energy industry, the Company has finished the comprehensive construction of industry chain from high puritypolycrystalline silicon materials, silicon wafer processing to cell and its module, photovoltaic rolled glass, etc. and extended toterminal application of PV power plant.With the improvement of technology in the chains, the industrial advantages emerged.

②The Company possesses a complete industry layout. At present, the Company has established large production bases in East China,

West China, South China and Central China, which enables the Company to be closer to the market and serve the market better.

③The Company has capability of technology innovation and product innovation. It owns independent intellectual property rights of

high-end float glass production process. The technology level of ultra-thin electronic glass is in the leading position in China. The

Company also keeps its R&D and production of energy-saving glass in line with the world’s advanced level, and its technique and

technology in the field of solar energy keep leading position in domestic market.

④The Company possesses high anti-risk capability. It has a perfect internal control system with sound performance. Meanwhile, the

management and control ability of account receivable and inventory stand in a high level within the industry.

CSG’s new management team have international and open ideas of operation and management, aim to achieve the transfer of

capacity and continue to expand new business fields along with the national policies of the Belt and Roads based on the intensivedevelopment of CSG's main business, making the Company be bigger and stronger, so as to be a comprehensive industrial group.

Section IV. Performance Discussion and Analysis

I. Overview

In the first half year of 2017, the global economic situation was turbulent, the recovery of the main economies remained weak, andrisk events occurred frequently. The FED increasing interest rates intensified the uncertainty of global economy. Under the

background of a slowdown in the global economic growth and increasing uncertainty, along with China’s economy structureadjustment being further strengthened, industrial enterprises achieved profit growth, the measure of “Removing Excess Capacity”

achieved initial success, and the overall economy achieved a steady growth.In the first half of 2017, CSG faced tremendous internal and external pressure, but under the leadership of the new management, thebusiness units advanced steadily in production and operation, seizing the favorable market opportunities while challenging theadverse market difficulties, and overfulfilled the business tasks of the first half of the year by improving internal efficiency, tappingpotentiality and increasing efficiency. In the first half year, the Company realized operating revenue of RMB 4,944 million, with ayear-on-year increase of RMB 716 million or 16.94%. The net profit was RMB 400 million, with a year-on-year decrease of RMB 65million or 13.99%. And the net profit after deducting non-recurring gains and losses was RMB 361 million, with a year-on-yeardecrease of RMB 63 million or 14.78%. Details of the production and operation of the Company were as follows:

(I) Glass industryIn which, the net profit of float glass was historically high. Affected by the national macro-control and environmental policy, floatglass prices stayed at a high level which has continued until the present day from the second half of last year. To take advantage ofthe opportunity, the Company took measures of improving capacity, strengthening internal management, tapping potential andincreasing efficiency, promoting the differentiation of glass products and other measures to ensure the greatest achievement in thefavorable market timing.The price of solar glass declined affected by the photovoltaic industry, which brought specified pressure to the management of theCompany. The Company actively developed new products, especially the market layout of thin glass and Double Glazed Glass Panel,to resist the impact of falling prices on profits.As architectural glass was enduring enormous pressure due to overall real estate investment growth slowing down, the Companyadopted various measures to expand sales volume for increasing its operating income. But affected by regulation and control policiesof upstream property industry, real estate developers generally implemented cost compression policies, together with the price rise ofraw float glass, which resulted in a decrease in profits. The Company took active measures to respond to the matter mentioned above,including improving internal efficiency, tapping potential and increasing efficiency, being proactive in the external market to seizemore orders, layout of the housing market as well as promoting new products, to reduce the pressure on rising costs.(II) Solar energy industryAfter offset of consolidation in the first half year of 2017, solar energy industry realized operating revenue of RMB 1,388 million,with a year-on-year increase of 9.74%. The net profit was RMB 106 million, with a year-on-year decrease of 46.74%.

In the first half of 2016, affected by “Expedited Installation by June 30”, the overall market of PV industry was rising rapidly. After

entering the second half year, as expedited installation subsided, the price showed a downward trend. The Company took measures oftechnological transformation, improving production capacity, improving efficiency, tapping potential and increasing efficiency andother measures to make up for the impact of price decline on its profits.At the end of 2015, the Group established Shenzhen CSG PV Energy Co., Ltd. to develop PV power station and further improvesolar energy industrial chain (silicon material-silicon wafer- solar cell - module -PV power station). The Company is activelypromoting PV building integration project, currently focusing on market cultivation and customer development, and has initially

reached a strategic cooperation agreement with some well-known property developers. The development of PV power stationbusiness will bring new income and profit growth point, and further improve the competitiveness of the Group in solar energyindustry.(III)Electronic glass and displayAfter offset of consolidation in the first half year of 2017, electronic glass and display division realized operating revenue of RMB367 million, with a year-on-year increase of RMB 277 million or 307.63%. The net profit was RMB 22.07 million, with ayear-on-year increase of RMB 25.47 million.The Group further defined the product business positioning and technical route. Facing market opportunity, the Group graduallyoccupied mobile toughened coated glass market through continuous technical improvement and reform and quality improvement. Atthe same time, along with the commercial operation of Qingyuan high aluminum ultra-thin glass production line and gradualimprovement of product quality, the productivity and product line of the Group in the field of electronic glass will be furtherimproved and enriched, and preliminarily set up national strategic layout. At present, the construction of Xianning ultra-highaluminum ultra-thin glass production line is proceeding smoothly. Civil works, craftwork and equipment installation are goingaccording to plan. Up until now, the project has entered the final stage and it will be ignited and enter into trial production within thisyear.

II. Main business analysis

1. Overview

See the relevant content in Discussion and Analysis of Business Situation, which Summarized in the Overview.Year-on-year changes of main financial data

Unit: RMB

The report periodThe corresponding period of last yearIncrease /decrease year-on-year(%)Reasons of change
Operating revenue4,944,337,8614,228,165,64216.94%Mainly due to the increase in revenue of glass industry and electronic glass and display industry
Operating costs3,737,514,4623,076,818,50321.47%Mainly due to the increase in revenue
Sales expenses156,344,731128,564,83121.61%Mainly due to the increase in transportation costs
Administration expenses402,554,340348,836,39515.4%Mainly due to the increase in wages and R&D costs
Financial expenses143,374,027133,353,3937.51%Mainly due to the increase in interest income
Income tax expenses80,453,02177,843,1643.35%
R&D investment166,809,377155,478,3257.29%
Net cash flow arising from operating activities1,019,889,4541,046,720,349-2.56%Mainly due to the increase in operating receivables
Net cash flow arising from investment activities-739,345,310-976,174,439-24.26%Mainly due to the decrease in cash paid by the subsidiaries
Net cash flow arising from financing activities67,852,001-241,140,524——Mainly due to the decrease in cash paid by dividends, profits or interest paid during the report period.
Net increase of cash and cash equivalent347,483,532-170,034,722——Mainly due to the decrease in cash expenditure on investment and financing activities

Major changes on profit composition or profit resources in the report period

□Applicable √Not applicable

There were no major changes on profit composition or profit resources in the report period.Composition of main business

Unit: RMB

Operating revenueOperating costGross profit ratioIncrease/decrease of operating revenue y-o-yIncrease/decrease of operating cost y-o-yIncrease/decrease of gross profit ratio y-o-y
According to industry
Glass industry3,201,388,6922,377,291,71625.74%11.32%12.09%-0.52%
Solar energy industry1,372,856,2101,113,797,82518.87%10.20%24.77%-9.47%
Electronic glass & Display industry363,905,796260,233,83828.49%325.75%325.52%0.04%
Amount of unutilized-23,614,824-20,408,528
According to product
Glass industry3,201,388,6922,377,291,71625.74%11.32%12.09%-0.52%
Solar energy industry1,372,856,2101,113,797,82518.87%10.20%24.77%-9.47%
Electronic glass & Display industry363,905,796260,233,83828.49%325.75%325.52%0.04%
Amount of unutilized-23,614,824-20,408,528
According to region
Mainland China4,423,992,3443,376,477,50923.68%19.63%24.35%-2.9%
H.K. China159,110,24795,369,79340.06%241.67%185.36%11.83%
Europe10,469,9239,511,9819.15%-69.46%-66.40%-8.28%
Asia (excluding Mainland China and H.K.)284,803,871221,558,46722.21%-10.11%0.12%-7.95%
North America9,235,6727,473,91119.08%-85.57%-80.29%-21.69%
Australia23,668,50617,972,74024.06%21.02%43.75%-12.01%
Other regions3,255,3112,550,45021.65%-31.82%-32.78%1.13%

III. Non - core business analysis

√Applicable □ Not applicable

Unit: RMB

AmountPercentage to total profitsExplanation of the reasonWhether sustainable or not
Impairment of assets1,108,6950.23%Mainly due to provision for bad debtsNo
Non-operating income16,029,5963.33%Mainly due to government subsidiesNo
Non-operating expenses732,5920.15%Mainly due to disposal of non-current assetsNo

IV. Assets and liabilities

1. Significant changes in assets composition

Unit: RMB

End of the report periodEnd of the same period last yearIncrease or decrease in proportionExplanation of Significant changes
AmountPercentage to total assetsAmountPercentage to total assets
Monetary funds934,235,2015.21%586,803,5053.46%1.75%Mainly due to the increase in monetary funds during the report period
Accounts receivable679,943,9153.79%627,985,9833.70%0.09%
Inventory630,593,7763.52%477,780,9252.81%0.71%
Fixed assets11,773,502,13565.66%11,457,972,99167.48%-1.82%
Construction in1,259,425,3717.02%1,362,096,3778.02%-1.00%
progress
Short-term borrowing2,399,694,00013.38%4,017,869,66223.66%-10.28%Mainly due to the repayment of the loan due in the report period
Long-term borrowing1,624,000,0009.06%1,438,660,0008.47%0.59%

2. Assets and liabilities at fair value

□Applicable √Not applicable

3. Limited asset rights as of the end of the report period

ItemLimited amountLimited reason
Monetary fund2,184,679Margin deposit deposited when the Company applies for a letter of credit issued by the bank and applies for loans from the bank.

V. Investment analysis

1. Overall situation

√Applicable □ Not applicable

Investment in the report period (RMB)Investment in the same period of last year ( RMB)Change range
763,429,3301,006,492,308-24.15%

2. The major equity investment obtained in the report period

□Applicable √Not applicable

3. The major ongoing non-equity investment in the report period

√Applicable □ Not applicable

Unit: RMB 0,000

ProjectWay of investmentFixed asset investment or notIndustry involvedAmount invested in the report periodAccumulative amount actually invested by the end of the report periodSource of fundsProgress of project (ongoing projects)Expected returnAccumulative revenue achieved by the end of the report periodReasons for not achieving the planned progress and the expected return
Yichang CSG upgrading & expansion project of electronic grade polysilicon and cold-hydrogenation technical upgradingSelf-builtYesManufacturing industry4,63321,754Own funds and borrowings from financial institutionsPlan to add a new cold-hydrogenation line in Yichang CSG, which can produce electronic grade polysilicon on basis of the solar grade polysilicon device, and meanwhile, add correspondent systems of reduction, rectification, recycle and utilities, so as to boost the actual capacity of polysilicon up to 12,000 tons/year (including 2,500 tons/year for electronic grade polysilicon and 9,500 tons/year for solar energy grade polysilicon). Now the cold-hydrogenation line has been constructed.22,4810The polysilicon products are still in the experimental stage and have not been put into operation yet.
Expanding 150MW solar PV cell project in DongguanSelf-builtYesManufacturing industry011,709Own funds and borrowings from financial institutionsPlan to invest in and expand the polysilicon cell production line of Dongguan. When the project is completed, the designed production capacity in Dongguan will be increased from 200MW/year to 350MW/year and the actual production capacity will be 560MW/year. The capacity goal has been2,799443The project was put into operation at the end of 2016. It is currently at
achieved by the end of Nov. 2016.the commissioning stage.
Yichang CSG’s project of adding 1GW silicon waferSelf-builtYesManufacturing industry25,13934,640Own funds and borrowings from financial institutionsPlan to add 1GW capacity of high-efficient polysilicon wafer on the basis of Yichang CSG's existing 1GW silicon wafer capacity, so as to achieve 2.0 GW capacity of polysilicon wafer. Now the first 500MW is under construction, which is expected to finish in July 2017.14,8530There’s no profit from the project as it is still in the construction period.
PV power plant investmentSelf-builtYesManufacturing industry4,59319,972Own funds and borrowings from financial institutionsCSG plans to construct a PV power plant within two years from 2016 to 2017. Its wholly-owned subsidiary, Shenzhen CSG PV Energy Co., Ltd. will self-build 200MW and the remaining 140MW will be constructed by CSG with Qibin Group. In 2016, Shenzhen CSG PV obtained the approval for 60MW integrated PV power plant.3 0 MW distributed PV power plant was developed and constructed. 15MW was connected to the grid in 2016.4,344574The project was put into operation at the beginning of 2017.
4 million square meters light guide plate and PV glass production lineSelf-built and purchasedYesManufacturing industry18,04232,369Own funds and borrowings from financial institutionsThe Company plans to construct a 4 million square meters PV glass production line for new type ultra-thin LCD display. The line is also provided with a capacity of higher strength ultra-thin electronic glass than CSG Qingyuan. The equity of Xianning Feng Wei Technology Co., Ltd. has been acquired within the report period and the project is under construction.10,5430There’s no profit from the project as it is still in the construction period.
Cold repair technical upgrading project of the first line of Chengdu CSGSelf-builtSelf-builtManufacturing industry5,7229,436Own funds and borrowings from financial institutionsCold repair technical upgrading has been performed for the first line of Chengdu CSG. The line will be upgraded to be a professional, high quality industrial thin glass line, featured 2mm series automobile glass while also covering 1.6mm.2,228472The project was put into operation in May, 2017.
Cold repair technical upgrading of the second line (900T) of Hebei CSGSelf-builtSelf-builtManufacturing industry45117,791Own funds and borrowings from financial institutionsThe former 900T line of float glass of Hebei CSG was upgraded to produce 2mm~19mm glass wafer. The project started on August 18, 2016 and now it is at the commissioning stage.1,5101,356The project was put into operation in March, 2017.
Subtotal------58,580147,671----58,7582,845--
ProjectWay of investmentFixed asset investment or notIndustry involvedAmount invested in the report periodAccumulative amount actually invested by the end of the report periodSource of fundsProgress of project (suspended projects)Expected returnAccumulative revenue achieved by the end of the report periodReasons for not achieving the planned progress and the expected return
Wujiang energy - saving glass expansion projectSelf-builtYesManufacturing industry021,239--Plan to increase two coated glass production lines and part of the deep processing supporting capacity. When the project is completed, the annual capacities of wide flat coated glass and coated insulating glass will rise by 3 million square meters and 1.2 million square meters respectively.The wide flat coated glass line of 3----By now, part of the project has been completed and the revenue was
million square meters has been completed, and the others will be invested according to market situations.not calculated individually.
Yichang CSG 700MW crystalline silicon solar cell projectSelf-builtYesManufacturing industry00--Plan to build a crystalline silicon solar cell production line with annual capacity of 700MW. The project was suspended and further investment will be based on actual industry situations.----The project was suspended.
Expanding 500MW solar module project in DongguanSelf-builtYesManufacturing industry00--Plan to expand the solar module production line with annual capacity of 500MW. The project was suspended and further investment will be based on actual industry situations.----The project was suspended.
Hebei Panel Glass project of medium-alumina ultra-thin electronic glassSelf-builtYesManufacturing industry0353Own fundsPlan to establish a production line for medium-alumina ultra-thin electronic glass in Hebei Panel Glass, using clean natural gas as the fuel, and produce 0.33mm~1.1mm medium-alumina ultra-thin glass with float process. The project was still in preparation.----The project was suspended.
Relocation and equipment upgrading of the solar module production line in DongguanSelf-builtYesManufacturing industry00--The Company plans to construct a module workshop in Xianning, Hubei Province, of which the final capacity will be 500MW. By relocation of some of the module equipment of its subsidiary, Dongguan CSG PV Technology Co., Ltd. and purchase of some new equipment, the first stage capacity of the Xianning workshop will be 300MW and, afterwards, it will be expanded to 500MW as required by the market conditions.----The project was suspended.
Solar onlineSelf-bYesManufa00--The Company plans to construct an online----The project
self-cleaning coated glass project of Dongguan CSGuiltcturing industryself-cleaning coated glass line in Dongguan.was suspended.
Malaysia-invested architectural glass plantSelf-builtYesManufacturing industry00--The Company plans to construct an architectural glass plant in Negeri Sembilan, Malaysia. The Phase I capacity of the newly-built plant will be 1,200,000 square meters insulating glass and 1,000,000 square meters single coated glass.----The project was suspended.
Subtotal------021,592----------
Total------58,580169,263----58,7582,845--
Details of approval and disclosure of the above projects as follows: 1.Expansion on energy-saving glass capacity of Wujiang Project and Yichang CSG 700MW silicon wafers project were deliberated and approved by the 18th meeting of the 5th session of board of directors on Dec. 23, 2010 and disclosed on Dec. 25, 2010, Announcement No.: 2010-046. 2.Yichang CSG upgrading & expansion project of electronic grade polysilicon was deliberated and approved by the 5thmeeting of the 7th session of board of directors on Mar. 27,2015 and disclosed on Mar. 31, 2015, Announcement No.: 2015-009. 3.Expanding 150MW solar PV cell project in Dongguan was deliberated and approved by the 10thmeeting of the 7th session of board of directors on Jan. 5, 2016 and disclosed on Jan. 6, 2016, Announcement No.: 2016-001. 4.Yichang CSG to add a 1GW silicon wafer project was deliberated and approved by the 10thmeeting of the 7th session of board of directors on Jan. 5, 2016 and 13thmeeting of the 7th session of board of directors on Apr. 15, 2016, respectively, and disclosed on Jan. 6, 2016 and Apr. 16, 2016, respectively, Announcement No.: 2016-001 and 2016-018. 5.PV power plant investment was deliberated and approved by the 11thmeeting of the 7th session of board of directors on Jan. 21, 2016 and disclosed on Jan. 22, 2016, Announcement No.: 2016-006. 6.4 million square meters light guide plate and PV glass production line was deliberated and approved by the extraordinary meeting of the 7th session of board of directors on May 20, 2016 and disclosed on May 21, 2016, Announcement No.: 2016-025. 7.Cold repair upgrading of the first line of Chengdu CSG was deliberated and approved by the 15th meeting of the 7th session of board of directors on Jul. 21, 2016. 8.Hebei Panel Glass project of medium-alumina ultra-thin electronic glass was deliberated and approved by the 4th meeting of the 7th session of board of directors on Oct.27, 2014 and disclosed on Oct. 29, 2014, Announcement No.: 2014-030. 9.Relocation and equipment upgrading of the solar module production line in Dongguan, solar online self-cleaning coated glass project of Dongguan CSG and Malaysia-invested architectural glass plant were deliberated and approved by the 13thmeeting of the 7th session of board of directors on Apr. 5, 2016 and disclosed on Apr. 16, 2016, Announcement No.: 2016-018.

4. Financial assets investment(1) Securities investment

□ Applicable √ Not applicable

There was no securities investment in the report period.

(2) Derivative investment

□ Applicable √ Not applicable

There was no derivative investment in the report period.

VI. Sale of major assets and equity

1. Sale of major assets

□ Applicable √ Not applicable

There was no sale of major assets in the report period.

2. Sale of major equity

□ Applicable √ Not applicable

VII. Analysis of main subsidiaries and joint-stock companies

√Applicable □ Not applicable

Particular about main subsidiaries and joint -stock companies which have influence on the Company's net profit by over 10%

Unit: RMB

Name of companyTypeMain businessRegister capitalTotal assets (RMB)Net Assets (RMB)Operating revenue (RMB)Operating profit (RMB)Net profit (RMB)
Chengdu CSG Glass Co., Ltd.SubsidiaryDevelopment, manufacture and sales of various special glass260 million938,103,561504,519,334422,534,11087,692,25275,472,235
Hebei CSG Glass Co., Ltd.SubsidiaryManufacture and sales of various special glassUSD 48.06 million917,556,377381,525,523242,352,30822,349,47217,823,889
Dongguan CSG Solar Glass Co., Ltd.SubsidiaryManufacture and sales of Solar-Energy Glass products480 million1,213,775,515778,362,064498,067,26157,432,31651,430,324
Dongguan CSG ArchitecturalSubsidiaryDeep processing of glass240 million1,021,925,255447,848,771418,260,22721,173,27821,034,834
Glass Co., Ltd.
Wujiang CSG East China Architectural Glass Co., Ltd.SubsidiaryDeep processing of glass320 million751,386,013468,065,825288,311,37912,109,09611,136,130
Shenzhen Nanbo Display Technology Co., Ltd.SubsidiaryManufacture and sales of display device products143 million1,609,253,349789,262,029228,993,49826,174,41614,924,574
Wujiang CSG Glass Co., Ltd.SubsidiaryManufacture and sales of various special glass565.04 million1,558,543,378837,352,078761,622,89983,449,11875,660,675
Yichang CSG Polysilicon Co., Ltd.SubsidiaryManufacture and sales of high purity silicon material products1,467.98 million3,763,383,5031,273,687,724833,838,97685,725,66974,914,606
Dongguan CSG PV-tech Co., Ltd.SubsidiaryManufacture and sales of solar cells and modules516 million979,332,164402,816,633592,852,50114,138,21615,453,052
Xianning CSG Glass Co., Ltd.SubsidiaryDevelopment and manufacture and sales of various special glass235 million721,793,962375,185,843364,751,11664,904,23063,744,741

Particular about subsidiaries obtained or disposed in report period

□ Applicable √ Not applicable

VIII. Structured main bodies controlled by the Company

□ Applicable √ Not applicable

IX. Prediction of business performance from January to September 2017

Alert of loss or significant change in accumulative net profit from the beginning of year to the end of the next report period orcompared with the same period of last year, and statement of causations.

□ Applicable √Not applicable

X. Risks and response measures the Company faces

In 2017, in the face of “New Normal” of domestic economic development and “New CSG” construction task of the Company, the

Company will face the following risks and challenges:

① By the end of 2016, the Company had significant personnel change.Under the efforts of the Board of Directors and all employees,

the stability of daily operation of the Company has been guaranteed. At present, the new management team of CSG has been

established, and the operation management of the Company has been normal. However, the Company still faces the risk of lack ofhigh-end talent reserve. To cope with aforesaid risks, the Company will take the following measures:

A. Construct new corporate culture of CSG as soon as possible, strengthen innovation execution culture, establish an kind of open,equal, fair and enterprising corporate culture, and reinforce internal core cohesion of employees;B. Establish remuneration incentive system which related to performance and improve employee incentive mechanism;C. Strengthen internal employee training, introduce externalhigh-quality talent, and rapidly establish a high-quality talent team;D. Establish sustainable talent recruitment, cultivation, utilization, retaining, and development management system; create afuture-oriented human resource production, development, supply system that can support the future development of CSG.

②The flat glass and architectural glass industry continue to face the pressure of downward demand and excess capacity, the solar

energy and PV industry will face the risk of industrial integration and price fluctuation, display devices and electronic glass industrywill encounter the risk of accelerated technical upgrading and slow demand on electronic product. To cope with aforesaid risks, theCompany will take the following measures:

A. In the flat glass industry, the Company will accelerate the technical upgrading and reform of existing production line to realizedifferential operation, expand industrial scale and strengthen industrial competitiveness through industrial M&A;B. In architectural glass industry, the Company will strengthen the development of high-end market and overseas market, activelydevelop traditional residence market, and at the same time, maintain the industrial advantageous position of the Company throughmarket-oriented extension of industrial chain;C. In solar energy PV industry, the Company will accelerate the construction of silicon wafer production expansion project and otherprojects, increase support on construction of downstream PV power station, and reduce the risk of price fluctuation of upstreamsilicon material, etc.D. In electronic glass and display devices industry, the Company will strengthen research and development of new technology, newproduct, maintain its technical leading advantage in the industry, and further improve the product quality of ultra-thin electronic glass,so as to rapidly develop terminal market and improve industrial profitability.

③ Since 2016, flat glass and polysilicon industrial price has had great fluctuation, which results in great fluctuation of upstream raw

material price, and meanwhile the labor price is constantly rising, which brings risk to the operation of the Company. To cope withrisk, the Company will take the following measures:

A. Vigorously exploit potential and increase efficiency, and effectively implement energy saving and consumption reduction;B. Focus on the market change, and lock the price of bulk commodity at proper time;C. Utilize bulk purchase advantage to reduce purchase cost;D. Improve automatic production level, raise labor productivity.

④ Risk of fluctuation of foreign exchange rate: At present, nearly 10.65% of the sales revenue of the Company are from overseas, in

the future, the Company will further develop overseas business, and therefore, the fluctuation of exchange rate will bring certain riskto the operation of the Company. To cope with such risk, the Company will settle exchange in time and use safe and effective riskevading instrument and product to relatively lock exchange rate and reduce the risk caused by fluctuation of exchange rate.

Section V. Important Events

I. Particulars about annual general meeting and extraordinary general meeting held in thereport period

1. Particulars about Shareholders' General Meeting in the report period

Meeting sessionType of meetingInvestor participation ratioHold dateDisclosure dateDisclosure index
The 7th Board of DirectorsExtraordinary general meeting29.55%Jan. 13, 2017Jan. 14, 2017Juchao website(www.cninfo.com.cn)
The 7th Board of DirectorsExtraordinary general meeting30.26%Mar. 02, 2017Mar. 03, 2017Juchao website(www.cninfo.com.cn)
The 7th Board of DirectorsExtraordinary general meeting29%May 02, 2017May 03, 2017Juchao website(www.cninfo.com.cn)
The 8th Board of DirectorsAnnual general meeting29.07%May 22, 2017May 23, 2017Juchao website(www.cninfo.com.cn)

2. Extraordinary general meeting which is requested to convene by the preferred shareholders who haveresumed the voting right

□ Applicable √Not applicable

II.Profit distribution and capitalization of capital reserve in the report period

□ Applicable √Not applicable

The Company has no plans of cash dividend distribution, bonus shares being sent or converting capital reserve into share capital.

III. Commitments completed by the actual controllers, the shareholders, the related parties,

the purchasers and the Company during the report period and those that hadn’t been

completed execution by the end of the report period

√Applicable □ Not applicable

CommitmentsPromiseeType of commitmentsContent of commitmentsCommit-ment dateCommit- ment termImplement- ation
Commitments for Share Merger ReformThe original non-tradable shareholder Shenzhen InternationalCommitment of share reducitonThe Company has implemented share merger reform in May 2006. Till June 2008, the share of the original non-tradable shareholders which holding over 5% total shares of the2006-5-22N/ABy the end of the report period, the above shareholders
Holdings (SZ) Limited and Xin Tong Chan Industrial Development (Shenzhen) Co., Ltd.Company had all released. Therein, the original non-tradable shareholder Shenzhen International Holdings (SZ) Limited and Xin Tong Chan Industrial Development (Shenzhen) Co., Ltd. both are wholly-funded subsidiaries to Shenzhen International Holdings Limited (hereinafter Shenzhen International for short) listed in Hong Kong united stock exchange main board. Shenzhen International made commitment that it would strictly carry out related regulations of Securities Law, Administration of the Takeover of Listed Companies Procedures and Guiding Opinions on the Listed Companies’ Transfer of Original Shares Released from Trading Restrictions issued by CSRC during implementing share decreasingly-held plan and take information disclosure responsibility timely.of the Company had strictly carried out their promises.
Commitments in report of acquisition or equity changeForesea Life Insurance Co., Ltd,, Shenzhen Jushenghua Co., Ltd. and Chengtai Group Co., Ltd.? Commitment of horizontal competition, affiliate Transaction and ? capital occupationForesea Life Insurance Co., Ltd., Shenzhen Jushenghua Co., Ltd. and Chengtai Group Co., Ltd. issued detailed report of equity change on 29 June 2015, in which, they undertook to keep independent from CSG in aspects of personnel, assets, finance, organization set-up and business as long as Foresea Life Insurance remained the largest shareholder of CSG. Meanwhile, they made commitment on regularizing related transaction and avoiding industry competition.2015-6-29During the period when Foresea Life remains the largest shareholder of the CompanyBy the end of the report period, the above shareholders of the Company had strictly carried out their promises.
Commitments in assets reorganization
Commitments in initial public offering or re-financing
Equity incentive
commitment
Other commitments for medium and small shareholders
Completed on time(Y/N)Yes
If the commitments is not fulfilled on time, explain the reasons and the next work planNot applicable

IV. Engaging and dismissing of CPA

Whether the semi-annual report has been audited or not

□ Yes √ No

The semi-annual report of the Company has not been audited.

V. Explanation from Board of Directors, Supervisory Committee and Independent Directors

(if applicable) for “Non-standard audit report” of the period that issued by CPA

□ Applicable √ Not applicable

VI. Explanation from Board of Directors for “Non-standard audit report” of the previous

year

□ Applicable √ Not applicable

VII. Issues related to bankruptcy and reorganization

□ Applicable √ Not applicable

No such issues related to bankruptcy and reorganization occurred in the report period.

VIII. Lawsuits

Significant lawsuits and arbitrations

□ Applicable √ Not applicable

There were no significant lawsuits or arbitrations in the report period.Other lawsuits

□ Applicable √ Not applicable

IX. Penalty and rectification

□ Applicable √ Not applicable

No penalty or rectification for the Company in the report period.

X. Integrity of the Company and its controlling shareholders and actual controllers

□ Applicable √ Not applicable

XI. Implementation of the Company’s stock incentive plan, employee stock ownership plan or

other employee incentives

□ Applicable √ Not applicable

In the report period, there was no equity incentive plan, employee stock ownership plan or other employee incentive measures andtheir implementation.

XII.Major related transaction

1. Related transaction with routine operation concerned

□ Applicable √ Not applicable

In the report period, the Company did not have related transaction with routine operation concerned.

2. Related transaction with acquisition of assets or equity, sales of assets or equity concerned

□ Applicable √ Not applicable

In the report period, the Company did not have related transaction with acquisition of assets or equity, sales of assets or equityconcerned.

3. Related transaction with jointly external investment concerned

□ Applicable √ Not applicable

In the report period, the Company did not have related transaction with jointly external investment concerned.

4. Credits and liabilities with related parties

□ Applicable √ Not applicable

There was no credits and liabilities with related parties in the report period.

5. Other major related transaction

□ Applicable √ Not applicable

There was no other major related transaction in the report period.

XIII.Particular about non-operating fund of listed company occupied by controllingshareholder and its affiliated enterprises

□Applicable √Not applicable

It did not exist that non-operating fund of listed company was occupied by controlling shareholder or its affiliated enterprises in thereport period.

XIV. Significant contracts and their implementation

1. Trusteeship, contracting and leasing(1) Trusteeship

□ Applicable √ Not applicable

No trusteeship for the Company in the report period.

(2) Contract

□ Applicable √ Not applicable

No contract for the Company in the report period.

(3) Leasing

□ Applicable √ Not applicable

No leasing for the Company in the report period.

2. Major guarantees

√Applicable □ Not applicable

(1) Guarantee

Unit: RMB 0,000

Particulars about the external guarantee of the Company (Barring the guarantee for subsidiaries)
Name of the Company guaranteedRelated Announcement disclosure dateGuarantee limitActual date of happening (Date of signing agreement)Actual guarantee limitGuarantee typeGuarantee termComplete implementation or notGuarantee for related party (Yes or no)
Guarantee of the Company for the subsidiaries
Name of the Company guaranteedRelated Announcement disclosure dateGuarantee limitActual date of happening (Date of signing agreement)Actual guarantee limitGuarantee typeGuarantee termComplete implementation or notGuarantee for related party (Yes or no)
YiChang Nanbo Photoelectric Glass Co., Ltd.2017-05-225,4722017-05-263,284General guarantee2 yearNoNo
YiChang Nanbo Photoelectric Glass Co., Ltd.2016-12-142,4322017-05-231,459General guarantee1 yearNoNo
Wujiang CSG Glass Co., Ltd.2016-08-1210,0002017-03-077,000General guarantee1 yearNoNo
Dongguan CSG Architectural Glass Co., Ltd.2016-08-1211,2002016-08-1910,000General guarantee1 yearNoNo
Dongguan CSG Architectural Glass Co., Ltd.2017-01-1318,0002017-02-0913,000General guarantee1 yearNoNo
Yichang CSG Display Co.,Ltd.2017-05-313,6482017-06-152,189General guarantee3 yearNoNo
Tianjin CSG Energy-Saving Glass Co., Ltd.2016-08-1210,0002017-02-142,000General guarantee1 yearNoNo
Sichuan CSG Energy Conservation Glass Co., Ltd.2016-03-2313,0002016-08-122,000General guarantee1 yearNoNo
Sichuan CSG Energy Conservation Glass Co., Ltd.2017-01-235,0002017-04-112,000General guarantee1 yearNoNo
Wujiang CSG East China Architectural Glass Co., Ltd.2016-08-1210,0002017-04-286,000General guarantee1 yearNoNo
Wujiang CSG East China Architectural Glass Co., Ltd.2016-12-1410,0002017-04-262,000General guarantee1 yearNoNo
Xianning CSG Energy-Saving Glass Co., Ltd2016-08-1210,0002017-06-212,600General guarantee1 yearNoNo
Xianning CSG Energy-Saving Glass Co., Ltd2016-03-2310,0002016-12-205,500General guarantee3 yearNoNo
Dongguan CSG Solar Glass Co., Ltd.2016-12-1415,0002017-06-143,300General guarantee1 yearNoNo
Yichang CSG Polysilicon Co.,Ltd.2017-01-132,0002017-04-262,000General guarantee1 yearNoNo
Xianning CSG Photoelectric Glass Co., Ltd.2016-08-1230,0002017-01-0319,000General guarantee5 yearNoNo
Qingyuan CSG New Energy-Saving Materials Co., Ltd.2016-08-125,0002016-12-143,060General guarantee1 yearNoNo
YiChang Nanbo Photoelectric Glass Co., Ltd.2017-05-2210,0322017-05-316,080General guarantee3 yearNoNo
Yichang CSG Polysilicon Co.,Ltd.2017-05-2220,0002017-06-2219,000General guarantee3 yearNoNo
Total amount of approving guarantee for subsidiaries in report period (B1)259,606Total amount of actual occurred guarantee for subsidiaries in report period (B2)80,851
Total amount of approved guarantee for subsidiaries at the end of reporting period (B3)438,794Total balance of actual guarantee for subsidiaries at the end of reporting period (B4)111,471
Subsidiary to subsidiary guarantees
Name of the Company guaranteedRelated Announcement disclosure dateGuarantee limitActual date of happening (Date of signing agreement)Actual guarantee limitGuarantee typeGuarantee termComplete implementation or notGuarantee for related party (Yes or no)
Total amount of guarantee of the Company( total of three abovementioned guarantee)
Total amount of approving guarantee in report period (A1+B1+C1)259,606Total amount of actual occurred guarantee in report period (A2+B2+C2)80,851
Total amount of approved guarantee at the end of report period (A3+B3+C3)438,794Total balance of actual guarantee at the end of report period (A4+B4+C4)111,471
The proportion of total actual guarantee (that is A4+B4+C4) to net assets of the Company13.79%
Including:
Amount of guarantee for shareholders, actual controller and its related parties (D)0
The debts guarantee amount provided for the guaranteed parties whose assets-liability ratio exceed 70% directly or indirectly (E)0
Proportion of total amount of guarantee to net assets of the Company exceed 50% (F)0
Total amount of the aforesaid three guarantees (D+E+F)0
Explanations on possibly bearing joint and several liquidating responsibilities for undue guarantees (if applicable)The Company shall bear joint and several liabilities in guarantee range if the subsidiaries fail to fulfill the obligation of repayment.
Explanations on external guarantee against regulated procedures (if applicable)No

Particulars about the guarantees which were guaranteed by a combination approach

(2) Illegal external guarantee

□ Applicable √ Not applicable

No Illegal external guarantee in the report period.

3. Other material contracts

□ Applicable √ Not applicable

No other material contracts for the Company in the report period.

XV. Social responsibilities

1. Performance of social responsibility for targeted poverty alleviation

No targeted poverty alleviation was carried out in the first half of the year, no follow-up plan for targeted poverty alleviation either.

2. Significant environmental situation

Whether the listed company and its subsidiaries belong to the key pollutant discharge units announced by the environmentalprotection departmentYes

Name of Company or subsidiaryName of major pollutants and characteristic contaminantsWay of emissionNumber of Exhaust ventExhaust vent distributionEmission concentrationImplementation of pollutant emission standardsTotal emissionApproved total emissionExcessive emissions
Xianning CSG Glass Co., Ltd.Dust\Soot\ SO2\ Nitrogen oxideDischarge after the treatment of denitrification and dust removal16Chimney, Exhaust gas outletDust≤30mg/m?;Soot≤40 mg/m?;SO2≤200 mg/m?;NOx≤350 mg/m?;《Emission standard of air pollutants for flat glass industry》(GB26453-2011)Particulates:25.5t;SO2:72t;NOx:125t;Particulates:96.82t/a;SO2:636.5t/a Nitrogen oxides:1113.89t/aReach the discharge standard
Chengdu CSG Glass Co., Ltd.Dust\Soot\ SO2\ Nitrogen oxideDischarge after the treatment of denitrification and dust removal15Chimney, Exhaust gas outletDust≤28.4mg/m?;Soot≤32.13mg/m?;SO2≤277.6mg/m?;NOx≤330.3mg/m?;《Emission standard of air pollutants for flat glass industry》(GB26453-2011)Particulates:37t;SO2: 340t;NOx :450t;Particulates:129.395t/a;SO2:1035.162t/a; Nitrogen oxides:1811.536t/aReach the discharge standard
Hebei CSG Glass Co., Ltd.Particulates\SO2\Nitrogen oxidesDischarged after denitrification, desulfurization and11Chimney, Exhaust gas outletParticulates≤16.9mg/m?; SO2≤113.2mg/m?; NOx≤324.1mg/m?《Emission Standard for Air Pollutants in Electronic GlassParticulates:10.5t;SO2:75t;NOx :210tParticulates:59.78t/a;SO2:498.18t/a NOx:982.2t/aReach the discharge standard
dust removalIndustry》(DB13/2168-2015)Hebei Local Standard
Yichang CSG Polysilicon Co., Ltd.PH\COD\ Ammonia nitrogen/FluorideDischarged to the sewage treatment plant after being treated by the Company's sewage treatment station.3Discharge outlets of waste waterPH:6-9;COD≤500mg/L;Fluoride≤10 mg/L;《Comprehensive Sewage Discharge Standard》Grade 3rd standard (GB8978-1996), implement grade 1st standard for fluorideCOD:30t Ammonia nitrogen:1.1tCOD:198.47t/a;Ammonia nitrogen:2.49t/aReach the discharge standard
Wujiang CSG Glass Co., Ltd.Particulates\ SO2\ Nitrogen oxideDischarge after the treatment of denitrification and dust removal39Chimney, Exhaust gas outletParticulates≤20mg/m?;SO2≤200 mg/m?;NOx≤300 mg/m?;《Emission standard of air pollutants for flat glass industry》(GB26453-2011)Particulates:5.1t;SO2: 40.2t;NOx :114tParticulates:76.91t/a;SO2:238.28t/a; Nitrogen oxides:818.04t/aReach the discharge standard
Dongguan CSG Solar Glass Co., Ltd.Dust\ Soot\ SO2\ Nitrogen oxideDischarge after the treatment of denitrification and dust removal22Chimney, Exhaust gas outletDust≤5mg/m?;Soot≤10 mg/m?;SO2≤400 mg/m?;NOx≤650 mg/m?;《Emission standard of air pollutants for flat glass industry》(GB26453-2011)Particulates:8.4t;SO2: 112t;NOx :232t;Particulates:34.85t/a;SO2:300.99t/a; Nitrogen oxides:535.67t/aReach the discharge standard
Dongguan CSG Architectural Glass Co., Ltd.PH\COD\ Ammonia nitrogenDischarged after being treated by the Company's sewage treatment station1Discharge outlets of waste waterpH:6~9 COD≤25.8 mg/L; Ammonia nitrogen≤0.546 mg/L Fluoride≤0.369mg/LDischarge Limits of Water Pollutants in Guangdong (DB44/26-2001), the second period, theCOD:0.7t;BOD5:0.4t;Ammonia nitrogen:0.01t;COD:5.4t/a; Ammonia nitrogen:0.6t/a;Reach the discharge standard
first grade standard
Dongguan CSG PV-tech Co., Ltd.Waste water: Fluoride \COD\ Ammonia nitrogen Exhaust gas: HF\NOx\HCI\CL2\NH3\VOCThe waste water is discharged after being treated by the waste water station, and the exhaust gas is discharged after being treated by the waste gas treatment tower.2 outlets for waste water and 18 outlets for exhaust gasDischarge outlets of waste water and exhaust gasWaste water:SS≤50mg/L;COD≤70 mg/L;Ammonia nitrogen≤10mg/L;Fluoride≤8mg/L;Exhaust gas:NOx≤30mg/m3;HF≤3 mg/m3;CL2≤5mg/m3;HCI≤5mg/m3;VOC≤30mg/m3;Discharge Limits of Water Pollutants in Guangdong (DB44/26-2001), the second period, the first grade standard; Discharge Standard of Pollutants in Battery Industry(GB30484-2013);For VOCs, refer to implement the Emission Standards for Furniture Manufacturing Industry (DB44/814-2010), the standard for the second stage; For NH3, implement the Emission Standards for Odor Pollutants(GB14554-93).Waste water: Suspended matter 2t;COD:5t;Ammonia nitrogen:0.2t;Fluoride:0.4t Exhaust gas: Nitrogen oxides:9.1t;Fluoride:0.4t;Hydrogen fluoride:0.3t;Chlorine gas:0.06t;Ammonia:0.5t;VOC:0.14tWaste water: Suspended matter 9.36t/a;COD:14.04t/a;Ammonia nitrogen:1.56t/a;Fluoride:1.56t/a Exhaust gas: Nitrogen oxides:20.825t/a;Fluoride:1.5156t/a;Hydrogen fluoride:1.0829t/a;Chlorine gas:0.2363t/a;Ammonia:2.3312t/a;VOC:1.0986t/aReach the discharge standard

Construction and operation of pollution control facilitiesThe Company builds Flue Gas Dust Removal System in the production lines. The system is running normally and exhaust emissionsis up to the standard.

XVI. Statement on other important matters

√Applicable □ Not applicable

1. Short-term Financing BillsOn 23 April 2013, annual general meeting of 2012 of CSG Holding Co., Ltd deliberated and approved the proposal of short-termfinancing bills offering, agreed the application of issuing short-term financing bills with a total amount of no more than 40 percent of

the Company’s net assets (the issued short-term financing bills included). On 20 December 2013, National Association of Financialmarket Institutional Investors held its 74th registration meeting of 2013, in which NAFMII decided to accept the Company’s

short-term financing bills registration, amounting to RMB 1.1 billion, valid for two years. China CITIC Bank Corporation Limitedand Agricultural Bank of China Co., Ltd were joint lead underwriters of these short-term financing bills, which could be issued bystages within the validity period of registration. On 14 March 2014, the Company issued short-term financing bills with a totalamount of RMB 0.5 billion and deadline of one year, which was redeemed on 14 March 2015. On 22 April 2015, the Companyissued the 1st batch of short-term financing bills for the year of 2015 with a total amount of RMB 0.6 billion and annual interest rateof 4.28%, and the expiry date is 23 April 2016. On 16-17 September 2015, the Company issued the 2nd batch of short-term financingbills for the year of 2015 with a total amount of RMB 0.4 billion and annual interest rate of 3.50%, and the expiry date is 17September 2016.

On Dec.14, 2016, the second extraordinary shareholders’ general meeting of 2016 of CSG deliberated and approved the proposal ofthe offering and registration of short-term financing bills, and agreed the Company’s registration and issuance of short-term financing

bills with a total amount of RMB 2.7 billion, which could be issued by stages within period of validity of the registration according to

the Company’s actual demands for funds and the status of inter-bank funds. However, the term of each issue shall not be longer thanone year and the registered quota shall not exceed 40 percent of the Company’s net assets.For details, please refer to www.chinabond.com.cn and www.chinamoney.com.cn.

2. Ultra-short-term financing bills

On 10 December 2014, the First Extraordinary Shareholders’ General Meeting 2014 of CSG Holding Co., Ltd deliberated and

approved the proposal of application for registration and issuance of ultra-short-term financing bills with registered capital of RMB 4billion at most and validity within 2 years. On 21 May 2015, National Association of Financial Market Institutional Investors

(NAFMII) held the 32nd registration meeting of 2015, in which NAFMII decided to accept the registration of the Company’s

ultra-short-term financing bills, amounting to RMB 4 billion and valid for two years. China Merchants Bank Co., Ltd., ShanghaiPudong Development Bank Co., Ltd., Industrial Bank Co., Ltd., China CITIC Bank Co., Ltd. and China Agriculture Bank Co., Ltd.were joint lead underwriters of these ultra-short-term financing bills, which could be issued by stages within period of validity of theregistration. On 12 June 2015, the Company issued the first batch of ultra-short-term financing bills for the year of 2015 with totalamount of RMB 0.8 billion and valid term of 270 days at the issuance rate of 4.25%, which was redeemed on 11 March 2016. On 13October 2015, the Company issued the second batch of ultra-short-term financing bills for the year of 2015 with total amount ofRMB 1.1 billion and valid term of 270 days at the issuance rate of 3.81%, which will be redeemed on 11 July 2016. On 10 March2016, the Company issued the first batch of ultra-short-term financing bills for the year of 2016 with total amount of RMB 0.8 billionand valid term of 270 days at the issuance rate of 3.15%, which will be redeemed on 6 December 2016. On 17 May 2016, theCompany issued the second batch of ultra-short-term financing bills for the year of 2016 with total amount of RMB 0.9 billion andvalid term of 270 days at the issuance rate of 4.18%, which will be redeemed on 10 February 2017. On 2 August 2016, the Companyissued the third batch of ultra-short-term financing bills for the year of 2016 with total amount of RMB 0.6 billion and valid term of270 days at the issuance rate of 3.67%, which will be redeemed on 1 May 2017. On Sep. 1, 2016, the Company issued the forth batchof ultra-short-term financing bills for the year of 2016 with total amount of RMB 0.5 billion and valid term of 270 days at theissuance rate of 3.5%, which will be redeemed on 2 June 2017.

For details, please refer to www.chinabond.com.cn and www.chinamoney.com.cn.

3. Perpetual bonds

On April 15, 2016, the Shareholders’ General Meeting 2015 of CSG deliberated and approved the proposal of application for

registration and issuance of perpetual bonds, and agreed the Company to register and issue perpetual bonds with total amount of

RMB 3.1 billion which could be issued by stages within period of validity of the registration according to the Company’s actualdemand for funds and the capital status of inter-bank market.

4. Medium-term notes

On 10 December 2014, the First Extraordinary Shareholders’ General Meeting 2014 of CSG Holding Co., Ltd deliberated and

approved the proposal of application for registeration and issuance of medium term notes with total amount of RMB 1.2 billion atmost. On 21 May 2015, National Association of Financial Market Institutional Investors (NAFMII) held the 32

nd

registration meeting

of 2015, in which NAFMII decided to accept the registration of the Company’s medium term notes, amounting to RMB 1.2 billion

and valid for two years. China Merchants Bank Co., Ltd. and Shanghai Pudong Development Bank Co., Ltd. were joint leadunderwriters of these medium term notes which could be issued by stages within period of validity of the registration.On 10 July2015, the Company issued the first batch of medium term notes with total amount of RMB 1.2 billion and valid term of 5 years at theissuance rate of 4.94%, which will be redeemed on 14 July 2020.

On April 15, 2016, the Shareholders’ General Meeting of 2015 of CSG deliberated and approved the proposal of application for

registration and issuance of medium term notes with total amount of RMB 0.8 billion, which could be issued by stages within period

of validity of the registration according to the Company’s actual demands for funds and the status of inter-bank funds.On May 22, 2017, the Shareholders’ General Meeting of 2016 of CSG deliberated and approved the proposal of application for

registration and issuance of medium term notes with total amount of RMB 1 billion, which could be issued by stages within period of

validity of the registration according to the Company’s actual demands for funds and the status of inter-bank funds.For details, please refer to www.chinabond.com.cn and www.chinamoney.com.cn.

XVII. Significant events of subsidiaries of the Company

□ Applicable √ Not applicable

Section VI. Changes in Shares and Particulars about Shareholders

I. Changes in Share Capital

1. Changes in Share Capital

Unit: Share

Before the ChangeIncrease/Decrease in the Change (+, -)After the Change
AmountProportion (%)New shares issuedBonus sharesCapitalization of public reserveOthersSubtotalAmountProportion (%)
I. Restricted shares12,736,8880.61%-12,490,013-12,490,013246,8750.01%
3. Other domestic shares12,736,8880.61%-12,490,013-12,490,013246,8750.01%
Domestic natural person’s shares12,736,8880.61%-12,490,013-12,490,013246,8750.01%
II. Unrestricted shares2,062,598,67299.39%12,490,01312,490,0132,075,088,68599.99%
1. RMB Ordinary shares1,300,128,68062.65%12,376,01312,376,0131,312,504,69363.24%
2. Domestically listed foreign shares762,469,99236.74%114,000114,000762,583,99236.75%
III.Total shares2,075,335,560100%2,075,335,560100%

Reasons for share changed

√ Applicable □ Not applicable

Due to position changes of some of the directors of the Company Shenzhen Branch of China Securities Depository and Clearing Co.,Ltd. adjusted the amount of the restricted shares held by the senior management personnel as per requirements, and the amount ofrestricted shares and unrestricted shares changed accordingly. .Approval of share changed

√ Applicable □ Not applicable

On January 11, 2017, the Company's First Employee Congress of 2017 elected Mr. Zhao Peng as staff supervisor in the seventhsession of board of supervisors.Therefore, 75% shares, which were 1,875 shares held by Mr. Zhao Peng were classified into the

senior executives’ restricted shares.

On April 13, 2017, the Company's Second Employee Congress of 2017 elected Mr. Zhao Peng as staff supervisor in the seventhsession of board of supervisors.Therefore, 75% shares, which were 1,875 shares held by Mr. Zhao Peng were classified into the

senior executives’ restricted shares.

On February 23, 2017, Board of Directors of the Company convened an interim meeting to deliberate and approve the Proposal ofAppointment of Senior Management, which appointed Mr. Li Weinan as vice president of the Company. Therefore, 75% shares,

which were 225,000 shares held by Mr. Li Weinan were classified into the senior executives’ restricted shares.

On May 2, 2017, the First meeting of the 8

th

Session of Board of Directors of the Company deliberate and approve the Proposal ofAppointment of the New Session of Senior Management, which appointed Mr. Li Weinan as vice president of the Company.

Therefore, 75% shares, which were 225,000 shares held by Mr. Li Weinan were classified into classified into the senior executives’

restricted shares.Ownership transfer for changed shares

□ Applicable √ Not applicable

Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to commonshareholders of Company in the latest year and period

□Applicable √ Not applicable

Other information necessary to be disclosed or need to be disclosed under requirement from security regulators

□Applicable √ Not applicable

2. Changes of restricted shares

√Applicable □ Not applicable

Unit: Share

Shareholders’ nameNumber of shares restricted at Period-beginNumber of shares released in the YearNumber of new shares restricted in the YearNumber of shares restricted at Period-endRestriction reasonsReleased date
Zeng Nan4,500,3884,500,38800On 15 November 2016, Zeng Nan who used to be chairman of the Board of Directors of the Company resigned from his office. According to relevant requirements, all the shares held by him had to be locked up for six months.2017-5-16
Wu Guobin1,810,0001,810,00000On 15 November 2016, Wu Guobin who used to be CEO of the Company resigned from his office. According to relevant requirements, all the shares held by him had to be locked up for six months.2017-5-16
Luo Youming1,790,0001,790,00000On 15 November 2016, Luo Youming who used to be CFO of the Company resigned from his office. According to relevant requirements, all the shares held by him had to be locked up for six months.2017-5-16
Ke Hanqi1,730,0001,730,00000On 15 November 2016, Ke Hanqi who used to be vice president of the Company resigned from his office.2017-5-16
According to relevant requirements, all the shares held by him had to be locked up for six months.
Zhang Fan1,530,0001,530,00000On 15 November 2016, Zhang Fan who used to be vice president of the Company resigned from his office. According to relevant requirements, all the shares held by him had to be locked up for six months.2017-5-16
Zhang Bozhong114,000114,00000On 15 November 2016, Zhang Bozhong who used to be vice president of the Company resigned from his office. According to relevant requirements, all the shares held by him had to be locked up for six months.2017-5-16
Ding Jiuru1,050,0001,050,00000On 15 November 2016, Ding Jiuru who used to be Secretary of the Board of Directors of the Company resigned from his office. According to relevant requirements, all the shares held by him had to be locked up for six months.2017-5-17
Zhou Hong212,500212,50000On 12 August 2016, Zhouhong who used to be Secretary of the Board of Directors of the Company resigned from her office. According to relevant requirements, all the shares held by her had to be locked up for six months.2017-2-13
Yan Wendou0020,00020,000On 11 January 2017, Yan Wendou who used to be supervisor of the Board of supervisors of the Company resigned from his office, all the shares which were bought by him after leaving office had to2017-7-14
be locked up for six months.
Zhao Peng001,8751,875Supervisor——
Li Weinan00225,000225,000Senior executive——
Total12,736,88812,736,888246,875246,875----

II. Issuance and listing of Securities

□Applicable √ Not applicable

III.Amount of shareholders of the Company and particulars about shares holding

Unit: share

Total amount of shareholders at the end of the report period159,996Total 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 ShareholdersNature of shareholderProportion of shares held (%)Total shares held at the end of report periodChanges in report periodAmount of restricted shares heldAmount of un-restricted shares heldNumber of share pledged/frozen
Share statusAmount
Foresea Life Insurance Co., Ltd. – Haili NiannianDomestic non state-owned legal person15.45%320,595,8920320,595,892
Foresea Life Insurance Co., Ltd. – Universal Insurance ProductsDomestic non state-owned legal person3.92%81,405,744081,405,744
Shenzhen Jushenghua Co., Ltd.Domestic non state-owned legal person2.87%59,552,120059,552,120pledged59,552,100
Foresea Life Insurance Co., Ltd. – Own FundDomestic non state-owned legal person2.15%44,519,788044,519,788
Central Huijin Asset Management Ltd.State-owned legal person1.92%39,811,300039,811,300
China North Industries CorporationState-owned legal person1.39%28,800,000028,800,000
China Galaxy International Securities (Hong Kong) Co., LimitedForeign legal person1.35%27,992,212-700,00027,992,212
China Merchants SecuritiesState-owned1.10%22,817,998-7,299,022,817,998
(HK) Co., Limitedlegal person57
Shenzhen International Holdings (SZ) LimitedDomestic non state-owned legal person0.96%20,000,000020,000,000
BBH A/C VANGUARD EMERGING MARKETS STOCK INDEX FUNDForeign legal person0.64%13,280,792013,280,792
Strategic investors or general legal person becomes top 10 shareholders due to shares issued (if applicable)N/A
Explanation on associated relationship among the aforesaid shareholdersAmong shareholders as listed above, Foresea Life Insurance Co., Ltd.-Haili Niannian, Foresea Life Insurance Co., Ltd.-Universal Insurance Products, Foresea Life Insurance Co., Ltd.-Own Fund are all held by Foresea Life Insurance Co., Ltd. Shenzhen Jushenghua Co., Ltd. is a related legal person of Foresea Life Insurance Co., Ltd. and Chengtai Group Co., Ltd., another related legal person of Foresea Life Insurance Co., Ltd, which held 27,625,299 shares via China Galaxy International Securities (Hong Kong) Co., Limited. Except for the above-mentioned shareholders, It is unknown whether other shareholders belong to related party or have associated relationship regulated by the Management Regulation of Information Disclosure on Change of Shareholding for Listed Companies.
Particular about top ten shareholders with un-restrict shares held
Shareholders’ nameAmount of un-restrict shares held at year-endType of shares
TypeAmount
Foresea Life Insurance Co., Ltd. – Haili Niannian320,595,892RMB ordinary shares320,595,892
Foresea Life Insurance Co., Ltd. – Universal Insurance Products81,405,744RMB ordinary shares81,405,744
Shenzhen Jushenghua Co., Ltd.59,552,120RMB ordinary shares59,552,120
Foresea Life Insurance Co., Ltd. – Own Fund44,519,788RMB ordinary shares44,519,788
Central Huijin Asset Management Ltd.39,811,300RMB ordinary shares39,811,300
China North Industries Corporation28,800,000RMB ordinary shares28,800,000
China Galaxy International Securities (Hong Kong) Co., Limited27,992,212Domestically listed foreign shares27,992,212
China Merchants Securities (HK)22,817,998Domestically listed foreign22,817,998
Co., Limitedshares
Shenzhen International Holdings (SZ) Limited20,000,000RMB ordinary shares20,000,000
BBH A/C VANGUARD EMERGING MARKETS STOCK INDEX FUND13,280,792Domestically listed foreign shares13,280,792
Statement on associated relationship or consistent action among the above shareholders:Among shareholders as listed above, Foresea Life Insurance Co., Ltd.-Haili Niannian, Foresea Life Insurance Co., Ltd.-Universal Insurance Products, Foresea Life Insurance Co., Ltd.-Own Fund are all held by Foresea Life Insurance Co., Ltd. Shenzhen Jushenghua Co., Ltd. is a related legal person of Foresea Life Insurance Co., Ltd. and Chengtai Group Co., Ltd., another related legal person of Foresea Life Insurance Co., Ltd, which held 27,625,299 shares via China Galaxy International Securities (Hong Kong) Co., Limited. Except for the above-mentioned shareholders, It is unknown whether other shareholders belong to related party or have associated relationship regulated by the Management Regulation of Information Disclosure on Change of Shareholding for Listed Companies.
Explanation on shareholders involving margin business (if applicable)N/A

Whether the top ten shareholders or top ten shareholders with un-restrict shares carried out buy back deals in the report period

□Yes √ No

There were no buy back deals carried out by the top ten shareholders or top ten shareholders with un-restrict shares held in the reportperiod.

IV. Changes of controlling shareholder or actual controller

Changes of controlling shareholder in the report period

□Applicable √ Not applicable

Controlling shareholders have no changed in the report period.Changes of actual controller in the report period

□Applicable √ Not applicable

Actual controller has no changed in the report period.

Section VII. Particulars about Directors, Supervisors, Senior

Executives and Employees

I. Changes of shares held by directors, supervisors and senior executives

√ Applicable □ Not applicable

NameTitleWorking statusNumber of shares held at the beginning of the period (shares)Number of shares held by the current period (shares)Number of shares in the current period (shares)Number of shares held at the end of the period (shares)The number of restricted shares granted at the beginning of the period (shares)The number of restricted shares granted in the current period (shares)The number of restricted shares granted in the current period (shares)
Chen LinChairman of the Board,Currently in office
Jin QingjunIndependent DirectorCurrently in office
Zhan WeizaiIndependent DirectorCurrently in office
Zhu GuilongIndependent DirectorCurrently in office
Wang JianDirectorCurrently in office
Zhang JinshunDirectorCurrently in office
Ye WeiqingDirectorCurrently in office
Cheng XibaoDirectorCurrently in office
Pan YonghongDirector /CEOCurrently in office
Zhang WandongChairman of the board of supervisorsCurrently in office
Li XinjunSupervisorCurrently in office
Zhao PengSupervisorCurrently in office2,5002,500
Lu WenhuiExecutiveCurrently
Vice Presidentin office
Li WeinanVice presidentCurrently in office300,000300,000
Yang XinyuSecretary of the BoardCurrently in office
Fu QilinIndependent DirectorPost leaving
Long LongChairman of the board of supervisorsPost leaving
Hong Guo’anSupervisorPost leaving
Yan WendouSupervisorPost leaving020,00020,000
Total----302,50020,0000322,500000

II. Changes of directors, supervisors and senior executives

√ Applicable □ Not applicable

NameTitleTypeDateReason
Zhu GuilongIndependent DirectorBe electedMay 02, 2017Re-election of the board
Pan YonghongDirector /CEOBe employedFebruary 23, 2017Senior management employed by the Board of Directors
Zhang WandongSupervisorBe electedJanuary 13, 2017By-election of supervisor
Li XinjunSupervisorBe electedJanuary 13, 2017By-election of supervisor
Zhao PengSupervisorBe electedJanuary 11, 2017Election of employee supervisor
Lu WenhuiExecutive Vice PresidentBe employedFebruary 23, 2017Senior management employed by the Board of Directors
Li WeinanVice presidentBe employedFebruary 23, 2017Senior management employed by the Board of Directors
Yang XinyuSecretary of the BoardBe employedMay 02, 2017Senior management employed by the Board of Directors
Fu QilinIndependent DirectorPost leavingMay 02, 2017Post leaving at the expiration of term
Long LongChairman of the board of supervisorsPost leavingJanuary 13, 2017Resigned
Hong Guo’anSupervisorPost leavingJanuary 13, 2017Resigned
Yan WendouSupervisorPost leavingJanuary 11, 2017Resigned

Section VIII. Corporate Bonds

Whether the Company had corporate bonds publicly issued and listed on the stock exchange which hadn’t matured or fully paid until

the approval day of the semi-annual reportYes

I. The basic information of corporate bonds

NameShort nameBond codeIssue dateMaturity dateBond balance (RMB 0,000)Interest rateWay of repayment of principal and interest
Corporate bond in 2010 of CSG10 CSG 021120222010-10-202017-10-20100,0005.33%Using simple interest year - on - year, non - compound interest, the interest is paid once a year and the principal is paid at a time once due, and the final interest is paid together with the principal.
Corporate bond listing or transfer trading placeShenzhen Stock Exchange
Appropriate arrangements for investorsCorporate bond "10 CSG 02" established the sell-back option for investors, which was completed in 2015.
Interest payment and encashment of corporate bonds during the reporting periodPay in full and on time
Implementation of the special provisions including option and exchangeable terms of issuers or investors attached to corporate bonds and the relevant provisions during the report period (if applicable)N/A

II. Informantion of bond trustee and credit rating institution

Bond trustee:
NameChina Merchants Securities Co., Ltd.Office adds.38-45 floor, Ablock, Jiangsu Building, Yitian Road, Futian District, ShenzhenContact personNie DongyunTel.0755-82960984
Credit rating institution which tracks rating corporate bonds in the report period:
NameCCXROffice adds.8 floor, Anji Building, 760 Tibet South Road, Huangpu District, Shanghai
If bond trustee and credit rating institution engaged by the Company changed in the report period, explain the reason of the change, performance of the procedure, and the impact on the interest of investors etc. (if applicable)Not applicable

III. The use of fund raised by corporate bonds

The use of fund raised by corporate bonds and performance of the procedureThe raised fund is in strict accordance with the relevant provisions.
Balance at the end of year0
The operation of the special account for raised fundThe operation of the special account for raised fund is strictly accordance with the relevant provisions of prospectus commitment.
Whether the use of raised fund is consistent with the purpose, plan of use and other agreements of prospectus commitmentConsistent

IV. Information of the rating of corporation bonds

According to track rating of China Chengxin Securities Rating Co., Ltd. (Abbreviation “CCXR”) in 2015, the Company's subject

credit rating is AA +, rating outlook is stable, and the bonds credit rating of the current period is evaluated as AA +.

On May 27, 2017, China Chengxin Securities Rating Co., Ltd. carried out a follow-up rating on corporate bonds CSG’s 2010Corporate Bond issued by the Company. In CSG’s 2010 corporate bond tracking rating report (2017), the Company's subject credit

rating is AA +, rating outlook is stable, and the bonds credit rating of the current period is evaluated as AA +.

For details, please refer to CSG’s 2010 corporate bond tracking rating report (2017) which was released on Juchao website

(www.cninfo.com.cn) on June 1, 2017.

V. Trust mechanism, debt repayment plans and other debt repayment safeguards ofcorporation bonds

During the report period, the trust mechanism, debt repayment plans and other debt repayment safeguards have not been changedwhich are the same as the relevant commitments of raising instruction manual, the relevant implementations are as follows:

I. Debt repayment planThe Company established the annual and monthly plan for application of funds based on the payment arrangement for coming dueprincipal and interest of the corporation bonds, reasonably managed and allocated the funds so as to make sure the due principal andinterest be paid in time. The capital sources for paying the corporation bonds in the report period were mainly the cash flow

generated by the Company’s operating activities and the bank loans.

In 2016, the Company paid the interest of corporation bond "10 CSG 02" on time.

II. Repayment safeguards for the Company’s bonds

In order to fully and effectively maintained the interests of the bondholders, the Company has made a series plans for the timely andsufficient repayment for bonds in the report period, including confirming the specialized departments and personnel, arranging the

funds for repayment, establishing the management measures, achieving the organization coordination, and strengthening informationdisclosure so as to form a set of safeguards to ensure the security payment of bond.

(I) Establish the "Bondholders' Meeting Rules"The Company has established the "Bondholders' Meeting Rules" for the corporation bonds in accordance with the "Pilot Approachfor the Issuance of Corporation Bonds", appointed the range, procedures and other important matters for bondholders to exerciserights by bondholders' meeting and made reasonable institutional arrangements to ensure the principal and interest of the corporationbonds be paid timely and sufficiently.

(II) Engage bond trusteeThe Company has engaged China Merchants Securities Co., Ltd. as the trustee for the corporation bonds in accordance with the"Pilot Approach for the Issuance of Corporation Bonds", and signed the "Bond Trusteeship Agreement". In the duration of the

corporation bonds, the bond trustee will maintain the interests of the Company’s bondholders according to the agreement.

(III) Establish the specialized reimbursement working group and set up special account for debt repaymentThe Company used the funds raised from the bond strictly in accordance with the "Financial Management System" and "FinancialFunds Management Approach". The Company has appointed the financial department to take the lead and take charge of therepayment of corporation bonds, implement and arrange the repayment funds for principal and interest of corporation bonds in theannual financial budget so as to ensure the principal and interest be paid on time and guarantee the interests of bondholders. Within15 working days before the annual interest pay day and annual principal pay day of corporation bonds, the Company speciallyestablishes a working group of which the members are composed of personnel from the company's financial management departmentto take charge of the repayment of interests and other relevant work. The Company guarantees the funds for payment of interest willbe sent to the special repayment account three days before the annual interest payment and the funds for cashing principle will besent to the special repayment account one week before the due date of corporation bonds, the special repayment account will payboth the principle and interest.

(IV) Improve profitability, strengthen funds management, and optimize debt structureThe Company has a rigorous financial system and a normative management system, account receivable turnover and inventory

turnover are in good status, the Company’s financial policies are steady, and the structure of assets and liabilities is reasonable. The

Company will continue its efforts to enhance the profitability of main business and the market competitiveness of products so as toimprove the Company 's return on assets; the Company also will continue to strengthen the management of accounts receivable andinventory so as to improve accounts receivable turnover and inventory turnover, and thereby enhance the Company 's ability toobtain cash.

(V) Strict information disclosure

The Company follows the principle of truly, accurately and completely disclosing information so that the Company’s debt paying

ability and use of proceeds can be under the supervision of the bondholders, bond trustee and shareholders to prevent debt repaymentrisk.

(VI) Other safeguardsWhen the Company cannot pay interest and principal on time or has other breach of contracts, the Company will at least takefollowing measures:

1. Do not distribute profits to shareholders.2. Postpone the implementation of capital expenditure projects such as major foreign investment, mergers and acquisitions.

VI. Information about the bond-holder meeting during the reporting period

There was no bond-holder meeting convened in the report period.

VII. Information about the obligations fulfilled by the bond trustee in the report period

Bond trustee perform their duties as the agreement during the report period.The Company disclosed the "2010 Annual Corporate Bonds Trusteeship Transaction Report (2015)" prepared by China MerchantsSecurities Co., Ltd. at Juchao website (http//www.cninfo.com.cn) on April 20, 2016.The Company disclosed the "2010 Annual Corporate Bonds Trusteeship Transaction Interim Report on Major Matters" prepared byChina Merchants Securities Co., Ltd. at Juchao website (http//www.cninfo.com.cn) on June 29, 2016.The Company disclosed the "2010 Annual Corporate Bonds Trusteeship Transaction Interim Report on Major Matters" prepared byChina Merchants Securities Co., Ltd. at Juchao website (http//www.cninfo.com.cn) on November 22, 2016.The Company disclosed the "2010 Annual Corporate Bonds Trusteeship Transaction Report (2016)" prepared by China MerchantsSecurities Co., Ltd. at Juchao website (http//www.cninfo.com.cn) on May 18, 2017.Investors are welcomed to refer to the above reports.

VIII. The Company's main accounting data and financial indicators as of the end of thereport period and the end of the previous year (or the report period and the same period oflast year)

RMB 0,000

ItemEnd of this periodEnd of last yearIncrease/decrease in this period-end over that of last year-end (%)
Flow ratio49%36%13%
Assets liabilities ratio53%52%1%
Speed ratio39%29%10%
The report period (Jan. to Jun.2017)The same period of last yearIncrease/decrease year-on-year (%)
Interest coverage ratio of EBITDA7.158.21-12.91%
Loan repayment ratio100%100%0%
interest coverage ratio100%100%0%

The main reason of the above main accounting data and financial indicators changed more than 30% y-o-y

□Applicable √ Not applicable

IX. Company overdue debts

□Applicable √ Not applicableThe Company didn’t have overdue debts.

X. Payment of principle and interest for other bonds and debt financing instruments duringthe report period

1. On February 13, 2017, the Company completed the repayment of the second batch of ultra-short- term financing bills of 2016 withtotal amount of RMB 0.9 billion and annual rate of 4.18%, which were issued on May 19, 2016.2. On May 1, 2017, the Company completed the repayment of the third batch of ultra-short- term financing bills of 2016 with totalamount of RMB 0.6 billion and annual rate of 3.67%, which were issued on August 4, 2016.3. On June 2, 2017, the Company completed the repayment of the fourth batch of ultra-short- term financing bills of 2016 with totalamount of RMB 0.5 billion and annual rate of 3.50%, which were issued on September 5, 2016.

XI. Information about of bank credit and use, as well as repayment of bank loans during thereport period

In the report period, the Company gained bank credit of RMB 7,040.4 million and use quota of RMB 3,116.34 million and repaidloans of RMB 926.10 million.

XII. Information about fulfillment of the stipulations or commitments specified in theProspectus of the issuance of the bonds during the report period

Not applicable

XIII. Major matters occurring during the report period

Other major matters please refer to note sixteen “Explanation on other major matters ” in the fifth section “Important Events” in this

report.

XIV.Whether there is a guarantor of corporate bonds

□ Yes √ No

Section IX. Financial Report

(I) Auditors’ Report

Whether the Semi-annual Report has been audited or not

□ Yes √ No

The Semi-annual Report of the Company has not been audited.

(II) Financial Statements

All figures in the Notes to the Financial Statements are in RMB.

1. Consolidated Balance Sheet

Prepared by CSG Holding Co., Ltd.

Unit: RMB

ItemEnding balanceBeginning balance
Current asset:
Monetary capital934,235,201586,803,505
Settlement provision
Outgoing call loan
Financial assets measured at fair value with variations accounted into current income account
Derivative financial assets
Notes receivable536,557,203456,347,237
Account receivable679,943,915627,985,983
Prepayment162,247,37795,733,132
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance contracts receivable
Interest receivable
Dividend receivable
Other account receivable33,559,09033,229,149
Repurchasing of financial assets
Inventories630,593,776477,780,925
Assets held for sales
Non-current asset due in 1 year
Other current asset249,369,319199,905,577
Total of current asset3,226,505,8812,477,785,508
Non-current assets
Loans and payment on other’s behalf disbursed
Available-for-sale financial asset
Expired investment in possess
Long-term receivable
Long-term share equity investment
Investment real estates
Fixed assets11,773,502,13511,457,972,991
Construction in process1,259,425,3711,362,096,377
Engineering goods
Fixed asset disposal
Production physical assets
Gas & petrol
Intangible assets1,021,669,4471,032,458,977
R&D expense76,049,47166,927,714
Goodwill397,392,156397,392,156
Long-term amortizable expenses9,693,102975,660
Differed income tax asset84,697,21096,451,854
Other non-current asset81,346,84087,174,393
Total of non-current assets14,703,775,73214,501,450,122
Total of assets17,930,281,61316,979,235,630
Current liabilities
Short-term loans2,399,694,0004,017,869,662
Loan from Central Bank
Deposit received and hold for others
Call loan received
Financial liabilities measured at fair value with variations accounted into
Derivative financial liabilities
Notes payable114,500,00020,000,000
Account payable1,382,500,4781,169,869,370
Prepayment received201,549,137142,330,979
Selling of repurchased financial assets
Fees and commissions receivable
Employees’ wage payable173,186,321193,372,239
Tax payable87,961,271115,592,616
Interest payable98,184,69678,225,904
Dividend payable207,533,556
Other account payable844,823,887188,321,450
Reinsurance fee payable
Insurance contract provision
Entrusted trading of securities
Entrusted selling of securities
Liabilities held for sales
Non-current liability due in 1 year1,101,203,7021,029,340,000
Other current liability300,000300,000
Total of current liability6,611,437,0486,955,222,220
Non-current liabilities
Long-term borrowings1,624,000,0001,438,660,000
Bond payable
Including:preferred stock
Sustainable debt
Long-term payable838,871,670
Long-term payable employees’s remuneration
Special payable
Anticipated liabilities
Differed income420,880,301422,993,254
Differed income tax liability24,164,22129,749,137
Other non-recurring liabilities
Total of non-current liabilities2,907,916,1921,891,402,391
Total of liability9,519,353,2408,846,624,611
Owners’ equity
Share capital2,075,335,5602,075,335,560
Other equity instruments
Including:preferred stock
Sustainable debt
Capital reserves1,349,953,9771,260,702,197
Less: Shares in stock
Other comprehensive income3,577,7074,653,971
Special reserves3,233,6605,843,473
Surplus reserves888,850,230888,850,230
Common risk provision
Undistributed profit3,762,408,1803,576,949,573
Total of owner’s equity belong to the parent company8,083,359,3147,812,335,004
Minor shareholders’ equity327,569,059320,276,015
Total of owners’ equity8,410,928,3738,132,611,019
Total of liability and owners’ equity17,930,281,61316,979,235,630

Legal Representative:Chen Lin CFO:Pan Yonghong Manager of the financial department:Wang Wenxin

2. Balance Sheet of the Parent Company

Unit: RMB

ItemEnding balanceBeginning balance
Current asset:
Monetary capital559,161,574302,841,481
Financial assets measured at fair value with variations accounted into current income account
Derivative financial assets
Notes receivable
Account receivable
Prepayment1,750,00016,880
Interest receivable
Dividend receivable
Other account receivable3,416,514,5463,863,121,029
Inventories
Assets held for sales
Non-current asset due in 1 year
Other current asset
Total of current asset3,977,426,1204,165,979,390
Non-current assets
Available-for-sale financial asset
Expired investment in possess
Long-term receivable2,003,645,0002,003,645,000
Long-term share equity investment4,790,440,6324,790,440,632
Investment real estates
Fixed assets23,798,71426,073,848
Construction in process
Engineering goods
Fixed asset disposal
Production physical assets
Gas & petrol
Intangible assets1,167,6641,393,454
R&D expense
Goodwill
Long-term amortizable expenses
Differed income tax asset
Other non-current asset
Total of non-current assets6,819,052,0106,821,552,934
Total of assets10,796,478,13010,987,532,324
Current liabilities
Short-term loans1,690,000,0003,495,163,044
Financial liabilities measured at fair value with variations accounted into
Derivative financial liabilities
Notes payable
Account payable34,528317,874
Prepayment received
Employees’ wage payable42,237,69818,380,010
Tax payable1,019,7271,804,568
Interest payable8,767,3013,794,646
Dividend payable207,533,556
Other account payable1,151,107,561240,593,894
Liabilities held for sales
Non-current liability due in 1 year1,000,000,0001,000,000,000
Other current liability
Total of current liability4,100,700,3714,760,054,036
Non-current liabilities
Long-term borrowings1,380,000,0001,380,000,000
Bond payable
Including:preferred stock
Sustainable debt
Long-term payable649,823,518
Long-term payable employees’s remuneration
Special payable
Anticipated liabilities
Differed income16,280,66012,035,040
Differed income tax liability
Other non-recurring liabilities
Total of non-current liabilities2,046,104,1781,392,035,040
Total of liability6,146,804,5496,152,089,076
Owners’ equity
Share capital2,075,335,5602,075,335,560
Other equity instruments
Including:preferred stock
Sustainable debt
Capital reserves1,494,670,9231,405,529,511
Less: Shares in stock
Other comprehensive income
Special reserves
Surplus reserves903,395,590903,395,590
Undistributed profit176,271,508451,182,587
Total of owners’ equity4,649,673,5814,835,443,248
Total of liability and owners’ equity10,796,478,13010,987,532,324

3. Consolidated Income Statement

Unit: RMB

ItemBalance of this periodBalance of last period
I. Total revenue4,944,337,8614,228,165,642
Incl. Business income4,944,337,8614,228,165,642
Interest income
Insurance fee earned
Fee and commission received
II. Total business cost4,502,642,0303,720,133,533
Incl. Business cost3,737,514,4623,076,818,503
Interest expense
Fee and commission paid
Insurance discharge payment
Net claim amount paid
Net insurance policy reserves provided
Insurance policy dividend paid
Reinsurance expenses
Tax and surcharge61,745,77533,485,783
Sales expense156,344,731128,564,831
Administrative expense402,554,340348,836,395
Financial expenses143,374,027133,353,393
Asset impairment loss1,108,695-925,372
Plus: gains from change of fair value (“-“for loss)
Investment gains (“-“ for loss)-14,264,359
Incl. Investment gains from affiliates-14,264,359
Exchange gains (“-“ for loss)
Other gains23,674,234
III. Operational profit (“-“ for loss)465,370,065493,767,750
Plus: non-operational income16,029,59650,038,364
Incl. Income from disposal of non-current assets57,734248,642
Less: non-operational expenditure732,592661,628
Incl. Loss from disposal of non-current assets129,49019,984
IV. Gross profit (“-“ for loss)480,667,069543,144,486
Less: Income tax expenses80,453,02177,843,164
V. Net profit (“-“ for net loss)400,214,048465,301,322
Net profit attributable to the owners of parent company392,992,163466,883,254
Minor shareholders’ equity7,221,885-1,581,932
VI. Net amount of other gains after tax-1,076,264508,053
Net amount of other gains after tax attributable to owners of parent company-1,076,264508,053
(I) Other comprehensive income that will not be reclassified into gains/losses afterward
1. Change of net liability or asset of beneficiary plan from recalculating
2. The share of comprehensive income in invested entities under equity method which can not be reclassified into profit or loss
(II) Other comprehensive income items that will be reclassified into gains/losses in the subsequent accounting period-1,076,264508,053
1. The share of comprehensive income in invested entities under equity method which can be reclassified into profit or loss afterward
2.Gains and losses from changes in fair value available for sale financial assets
3.Held-to-maturity investments reclassified to gains and losses of available for sale financial assets
4.The effective portion of cash flow hedges and losses
5.Translation differences in currency financial statements-1,076,264508,053
6.Other
Net of profit of other comprehensive income attributable to Minority shareholders’ equity
VII. Total of misc. incomes399,137,784465,809,375
Total of misc. incomes attributable to the owners of the parent company391,915,899467,391,307
Total misc gains attributable to the minor shareholders7,221,885-1,581,932
VIII. Earnings per share:
(I) Basic earnings per share0.190.22
(II) Diluted earnings per share0.190.22

Legal Representative:Chen Lin CFO:Pan Yonghong Manager of the financial department:Wang Wenxin

4. Income Statement of the Parent Co.

Unit: RMB

ItemsBalance of this periodBalance of last period
I. Revenue27,295,2661,077,394
Less:business cost060,334
Tax and surcharge5,136,94494,720
Sales expense
Administrative expense70,540,22461,812,557
Financial expenses19,800,29511,263,822
Asset impairment loss7,706-1,770,242
Plus: gains from change of fair value (“-“for loss)
Investment gains (“-“ for loss)399,280,607
Incl. Investment gains from affiliates9,850,045
Other gains18,000
II. Operational profit (“-“ for loss)-68,171,903328,896,810
Plus: non-operational income794,380766,180
Incl. Income from disposal of non-current assets1,800
Less: non-operational expenditure
Incl. Loss from disposal of non-current assets
III. Gross profit (“-“ for loss)-67,377,523329,662,990
Less: Income tax expenses0-45,852
IV. Net profit (“-“ for net loss)-67,377,523329,708,842
V. Net amount of other gains after tax
(I) Other comprehensive income that will not be reclassified into gains/losses afterward
1. Change of net liability or asset of beneficiary plan from recalculating
2. The share of comprehensive income in invested entities under equity method which can not be reclassified into profit or loss
(II) Other comprehensive income items that will be reclassified into gains/losses in the subsequent accounting period
1. The share of comprehensive income in invested entities under equity method which can be reclassified into profit or loss afterward
2.Gains and losses from changes in fair value available for sale financial assets
3.Held-to-maturity investments reclassified to gains and losses of available for sale financial assets
4.The effective portion of cash flow hedges and losses
5.Translation differences in currency financial statements
6.Other
VI. Total of misc. incomes-67,377,523329,708,842
VII. Earnings per share:
(I) Basic earnings per share
(II) Diluted earnings per share

5. Consolidated Cash Flow Statement

Unit: RMB

ItemBalance of this periodBalance of last period
I. Net cash flow from business operation
Cash received from sales of products and providing of services5,472,732,6544,822,965,397
Net increase of customer deposits and capital kept for brother company
Net increase of loans from central bank
Net increase of inter-bank loans from other financial bodies
Cash received against original insurance contract
Net cash received from reinsurance business
Net increase of client deposit and investment
Net increase of disposal of the financial assets measured by fair value with the changes included in the current gains and losses
Cash received as interest, processing fee, and commission
Net increase of inter-bank fund received
Net increase of repurchasing business
Tax returned7,273,33535,363,638
Other cash received from business operation68,210,70246,108,936
Sub-total of cash inflow from business activities5,548,216,6914,904,437,971
Cash paid for purchasing of merchandise and services3,278,955,8882,769,544,694
Net increase of client trade and advance
Net increase of savings in central bank and brother company
Cash paid for original contract claim
Cash paid for interest, processing fee and commission
Cash paid for policy dividend
Cash paid to staffs or paid for staffs617,464,364529,127,685
Taxes paid380,644,776336,130,323
Other cash paid for business activities251,262,209222,914,920
Sub-total of cash outflow from business activities4,528,327,2373,857,717,622
Cash flow generated by business operation, net1,019,889,4541,046,720,349
II. Cash flow generated by investing
Cash received from investment retrieving
Cash received as investment profit
Net cash retrieved from disposal of fixed assets, intangible assets, and other long-term assets44,820617,985
Net cash received from disposal of subsidiaries or other operational units
Other investment-related cash received24,039,20029,699,884
Sub-total of cash inflow due to investment activities24,084,02030,317,869
Cash paid for construction of fixed assets, intangible assets and other long-term assets731,954,148472,503,623
Cash paid as investment4,250,000
Net increase of loan against pledge
Net cash received from subsidiaries and other operational units507,974,099
Other cash paid for investment activities31,475,18221,764,586
Sub-total of cash outflow due to investment activities763,429,3301,006,492,308
Net cash flow generated by investment-739,345,310-976,174,439
III. Cash flow generated by financing
Cash received as investment5,500,000
Incl. Cash received as investment from minor shareholders5,500,000
Cash received as loans1,452,919,7504,443,422,252
Cash received from bond placing
Other financing-related cash received1,666,591,530100,725,978
Subtotal of cash inflow from financing activities3,119,511,2804,549,648,230
Cash to repay debts2,924,757,7683,988,397,915
Cash paid as dividend, profit, or interests123,450,004693,264,874
Incl. Dividend and profit paid by subsidiaries to minor shareholders
Other cash paid for financing activities3,451,507109,125,965
Subtotal of cash outflow due to financing activities3,051,659,2794,790,788,754
Net cash flow generated by financing67,852,001-241,140,524
IV. Influence of exchange rate alternation on cash and cash equivalents-912,613559,892
V. Net increase of cash and cash equivalents347,483,532-170,034,722
Plus: Balance of cash and cash equivalents at the beginning of term584,566,990574,744,877
VI. Balance of cash and cash equivalents at the end of term932,050,522404,710,155

6. Cash Flow Statement of the Parent Co.

Unit: RMB

ItemBalance of this periodBalance of last period
I. Net cash flow from business operation
Cash received from sales of products and providing of services
Tax returned
Other cash received from business operation4,843,9882,616,039
Sub-total of cash inflow from business activities4,843,9882,616,039
Cash paid for purchasing of merchandise and services
Cash paid to staffs or paid for staffs33,652,14162,007,982
Taxes paid6,095,31639,306,033
Other cash paid for business activities12,279,6846,551,752
Sub-total of cash outflow from business activities52,027,141107,865,767
Cash flow generated by business operation, net-47,183,153-105,249,728
II. Cash flow generated by investing
Cash received from investment retrieving
Cash received as investment profit389,430,562
Net cash retrieved from disposal of fixed assets,1,800
intangible assets, and other long-term assets
Net cash received from disposal of subsidiaries or other operational units
Other investment-related cash received5,000,0003,000,000
Sub-total of cash inflow due to investment activities5,000,000392,432,362
Cash paid for construction of fixed assets, intangible assets and other long-term assets565,260117,326
Cash paid as investment175,755,000
Net cash received from subsidiaries and other operational units464,345,956
Other cash paid for investment activities
Sub-total of cash outflow due to investment activities565,260640,218,282
Net cash flow generated by investment4,434,740-247,785,920
III. Cash flow generated by financing
Cash received as investment
Cash received as loans990,693,6384,110,000,600
Cash received from bond placing
Other financing-related cash received1,806,455,260326,432,420
Subtotal of cash inflow from financing activities2,797,148,8984,436,433,020
Cash to repay debts2,496,723,3653,608,000,600
Cash paid as dividend, profit, or interests2,213,425662,199,041
Other cash paid for financing activities
Subtotal of cash outflow due to financing activities2,498,936,7904,270,199,641
Net cash flow generated by financing298,212,108166,233,379
IV. Influence of exchange rate alternation on cash and cash equivalents855,016-2,568,311
V. Net increase of cash and cash equivalents256,318,711-189,370,580
Plus: Balance of cash and cash equivalents at the beginning of term301,637,933394,606,753
VI. Balance of cash and cash equivalents at the end of term557,956,644205,236,173

7. Statement of Change in Owners’ Equity (Consolidated)

Amount of the Current Term

RMB

ItemsAmount of the Current Term
Owners’ Equity Attributable to the Parent CompanyMinority shareholders’ Total of owners’ equityTotal of owners’ equity
Share capitalOther equity instrumentsCapital reserveLess: treasury stockOther comprehensive incomeSpecial reservesSurplus reservesCommon risk provisionRetained profit
Preferred sharePerpetual capital securitiesOthers
I. Balance at the end of the previous year2,075,335,5601,260,702,1974,653,9715,843,473888,850,2303,576,949,573320,276,0158,132,611,019
Plus: change of accounting policy
Correction of errors in previous periods
Business combination under the same control
Others
II. Balance at the beginning of current year2,075,335,5601,260,702,1974,653,9715,843,473888,850,2303,576,949,573320,276,0158,132,611,019
III. Amount of change in current term89,251,780-1,076,264-2,609,813185,458,6077,293,044278,317,354
(“-“ for decrease)
(I) Total amount of the comprehensive income-1,076,264392,992,1637,221,885399,137,784
(II) Capital paid in and reduced by owners89,251,78071,15989,322,939
1. Common shares invested by the shareholders
2. Capital invested by the owners of other equity instruments
3. Amounts of share-based payments recognized in owners’ equity110,36871,159181,527
4. Others89,141,41289,141,412
(III) Profit distribution-207,533,556-207,533,556
1. Appropriations to surplus reserves
2. Appropriations to general risk provisions
3. Appropriations to owners (or shareholders)-207,533,556-207,533,556
4. Others
(IV) Internal carry-forward of owners’ equity
1. New increase of capital (or share capital ) from capital public reserves
2. New increase of capital (or share capital) from surplus reserves
3. Surplus reserves for making up losses
4. Others
(V) Specific reserve-2,609,813-2,609,813
1. Withdrawn for the period3,922,8693,922,869
2. Used in the period6,532,6826,532,682
(VI) Others
IV. Balance at the end of this term2,075,335,5601,349,953,9773,577,7073,233,660888,850,2303,762,408,180327,569,0598,410,928,373

Amount of Last Year

Unit: RMB

ItemsAmount of the same period of last year
Owners’ Equity Attributable to the Parent CompanyMinority shareholders’ Total of owners’ equityTotal of owners’ equity
Share capitalOther equity instrumentsCapital reserveLess: treasury stockOther comprehensive incomeSpecial reservesSurplus reservesCommon risk provisionRetained profit
Preferred sharePerpetual capital securitiesOthers
I. Balance at the end of the previous year2,075,335,5601,261,391,2722,967,77215,437,498859,122,3303,431,556,5653,080,4807,648,891,477
Plus: change of accounting policy
Correction of errors in previous periods
Business combination under the same control
Others
II. Balance at the beginning of current year2,075,335,5601,261,391,2722,967,77215,437,498859,122,3303,431,556,5653,080,4807,648,891,477
III. Amount of change in current term (“-“ for decrease)-689,0751,686,199-9,594,02529,727,900145,393,008317,195,535483,719,542
(I) Total amount of the1,686,199797,721,5766,504,948805,912,723
comprehensive income
(II) Capital paid in and reduced by owners402,262313,771,067314,173,329
1. Common shares invested by the shareholders313,628,750313,628,750
2. Capital invested by the owners of other equity instruments
3. Amounts of share-based payments recognized in owners’ equity402,262142,317544,579
4. Others
(III) Profit distribution29,727,900-652,328,568-622,600,668
1. Appropriations to surplus reserves29,727,900-29,727,900
2. Appropriations to general risk provisions
3. Appropriations to owners (or shareholders)-622,600,668-622,600,668
4. Others
(IV) Internal carry-forward of
owners’ equity
1. New increase of capital (or share capital ) from capital public reserves
2. New increase of capital (or share capital) from surplus reserves
3. Surplus reserves for making up losses
4. Others
(V) Specific reserve-9,594,025-9,594,025
1. Withdrawn for the period6,930,6506,930,650
2. Used in the period16,524,67516,524,675
(VI) Others-1,091,337-3,080,480-4,171,817
IV. Balance at the end of this term2,075,335,5601,260,702,1974,653,9715,843,473888,850,2303,576,949,573320,276,0158,132,611,019

8. Statement of Change in Owners’ Equity (Parent Co.)

Amount of the Current Term

Unit: RMB

ItemsAmount of the Current Term
Share capitalOther equity instrumentsCapital reserveLess: treasury stockOther comprehensive incomeSpecial reservesSurplus reservesRetained profitTotal of owners’ equity
Preferred sharePerpetual capital securitiesOthers
I. Balance at the end of the previous2,075,335,5601,405,529,511903,395,590451,182,5874,835,443,248
Plus: change of accounting policy
Correction of errors in previous periods
Others
II. Balance at the beginning of current year2,075,335,5601,405,529,511903,395,590451,182,5874,835,443,248
III. Amount of change in current term (“-“ for decrease)89,141,412-274,911,079-185,769,667
(I) Total amount of the comprehensive income-67,377,523-67,377,523
(II) Capital paid in and reduced by owners89,141,41289,141,412
1. Common shares invested by the shareholders
2. Capital invested by the owners of other equity instruments
3. Amounts of share-based payments recognized in owners’ equity
4. Others89,141,41289,141,412
(III) Profit distribution-207,533,556-207,533,556
1. Appropriations to surplus reserves
2. Appropriations to general risk-207,533,556-207,533,556
3. Others
(IV) Internal carry-forward of owners’ equity
1. New increase of capital (or share capital ) from capital public reserves
2. New increase of capital (or share capital) from surplus reserves
3. Surplus reserves for making up losses
4. Others
(V) Specific reserve
1. Withdrawn for the period
2. Used in the period
(VI) Others
IV. Balance at the end of this term2,075,335,5601,494,670,923903,395,590176,271,5084,649,673,581

Amount of Last Year

Uniit: RMB

ItemsAmount of the same period of last year
Share capitalOther equity instrumentsCapital reserveLess: treasury stockOther comprehensive incomeSpecial reservesSurplus reservesRetained profitTotal of owners’ equity
Preferred sharePerpetual capital securitiesOthers
I. Balance at the end of the previous2,075,335,5601,404,803,407873,667,690806,232,1515,160,038,808
Plus: change of accounting policy
Correction of errors in previous periods
Others
II. Balance at the beginning of current year2,075,335,5601,404,803,407873,667,690806,232,1515,160,038,808
III. Amount of change in current term (“-“ for decrease)726,10429,727,900-355,049,564-324,595,560
(I) Total amount of the comprehensive income297,279,004297,279,004
(II) Capital paid in and reduced by owners
1. Common shares invested by the shareholders
2. Capital invested by the owners of other equity instruments
3. Amounts of share-based payments recognized in owners’ equity
4. Others
(III) Profit distribution29,727,900-652,328,568-622,600,668
1. Appropriations to surplus reserves29,727,900-29,727,900
2. Appropriations to general risk-622,600,668-622,600,668
3. Others
(IV) Internal carry-forward of owners’ equity
1. New increase of capital (or share capital ) from capital public reserves
2. New increase of capital (or share capital) from surplus reserves
3. Surplus reserves for making up losses
4. Others
(V) Specific reserve
1. Withdrawn for the period
2. Used in the period
(VI) Others726,104726,104
IV. Balance at the end of this term2,075,335,5601,405,529,511903,395,590451,182,5874,835,443,248

III. Basic Information of the Company

CSG Holding Co Ltd (the “Company”) was incorporated in September 1984, known as China South Glass Company, as a jointventure enterprise by Hong Kong China Merchants Shipping Co., LTD (香港招商局轮船股份有限公司), Shenzhen BuildingMaterials Industry Corporation (深圳建筑材料工业集团公司), China North Industries Corporation (中国北方工业深圳公司)and Guangdong International Trust and Investment Corporation (广东国际信托投资公司). The Company was registered in

Shenzhen, Guangdong Province of the People's Republic of China and its headquarter locates in Guangdong Province of thePeople's Republic of China. The Company issued RMB-dominated ordinary shares and foreign shares publicly in October 1991and January 1992 respectively, and listed on Shenzhen Stock Exchange on February 1992. On 31 December 2015, theregistered capital was RMB 2,075,335,560, with nominal value of RMB1 per share.

The Company and its subsidiaries (collectively referred to as the “Group”) are mainly engaged in the manufacture and sales of

glass and energy meterials with glass as the medium, the manufacture and sales of polysilicon and solar module, theconstruction and operation of photovoltaic plant and the manufacture and sales of electronic glass and display.

The financial statements were authorised for issue by the board of directors on 22 August 2017.Details of major subsidiaries that were included in the financial statements in the period please refer to the Note. The newsubsidiary included in the consolidation scope in the period was Zhijiang CSG PV New Energy Co., Ltd. (hereinafter referredto as "Zhijiang PV Company").

IV. Basis of the preparation of financial statements

1. Basis of the preparation

The financial statements are prepared in accordance with the Accounting Standard for Business Enterprises - Basic Standard,and the specific accounting standards and other relevant regulations issued by the Ministry of Finance on 15 February 2006 and

in subsequent periods (hereafter collectively referred to as “the Accounting Standard for Business Enterprises” or “CAS”), and“Information Disclosure Rule No. 15 for Companies with Public Traded Securities - Financial Reporting General Provision”

issued by China Security Regulatory Commission.

2. Going concern

As at 30 June 2017, the Group had net current liabilities of about RMB 3.385 billion and committed capital expenditure of RMB 390million. The directors of the Company have made an assessment that the Group has continued for many years and is expected tocontinue to generate sufficient cash flow from operating activities over the next 12 months. As at 30 June 2017, the net cash inflowfrom operation activities was approximately RMB 1.02 billion. The Group has maintained good relationship with banks so theGroup has been able to successfully get adequate financing credit; As at 30 June 2017, the Group had unutilised internal bankingfacilities of approximately RMB 3.9 billion, In addition, the major shareholder of the Group is willing to provide the Group withinterest-free loans of RMB 2 billion for the Group or through its designated parties. As of the date of this report, the shareholder hasprovided RMB 1.35 billion of interest-free loans. In addition, the Group also has other available financing channels, such as

short-term financing bills, ultra-short –term financing notes, and medium term notes. The directors are of view that the abovebanking facilities and the support from the shareholder can meet the funding requirements of the Group’s debt servicing and capital

commitment. Accordingly, the directors of the Company had adopted the going concern basis in the preparation of this financialstatement of the Company and the Group.

V. Significant accounting policies and accounting estimates

1. Statement of compliance with the Accounting Standards for Business Enterprises

The financial statements of the Company for the first half year of 2017 truly and completely present the financial position as of 30June 2017 and the operating results, cash flows and other information for the first half year of 2017 of the Group and the Company incompliance with the Accounting Standards for Business Enterprises.

2. Accounting period

The Company’s accounting year starts on 1 January and ends on 31 December.

3. Operating cycle

The Company’s operating cycle starts on 1 January and ends on 31 December.

4. Recording currency

The recording currency is Renminbi (RMB).

5. Accounting process method of Business combinations under common and different controlling.(a)Business combinations involving entities under common control

The assets and liabilities that the combining party obtains in a business combination shall be measured on the basis of their carryingamount in the combined party. As for the balance between the carrying amount of the net assets obtained by the combining party and thecarrying amount of the consideration paid by it, the additional paid-in capital shall be adjusted. If the additional paid-in capital is notsufficient to be offset, the retained earnings shall be adjusted. Costs directly attributable to business combination are recorded into theprofits and losses once incurred. Transaction costs attributed to issue equity securities or debt securities for business combination arerecorded into initial recognition amounts of equity securities or debt securities.

(b) Business combinations involving entities not under common control

The cost of combination and identifiable net assets obtained by the acquirer in a business combination are measured at the fair value at

the acquisition date. The excess of the cost of acquisition over the Group’s share of the fair value of the identifiable net assets acquired isrecorded as goodwill. If the cost of acquisition is less than the Group’s share of fair value of the net assets of the subsidiary acquired, the

difference is recognised directly in the income statement. Costs directly attributable to business combination are included in the profitsand losses once incurred. Transaction costs attributed to issue equity securities or debt securities for business combination are recordedinto initial recognition amounts of equity securities or debt securities.

6. Basis of preparation of consolidated financial statements

The consolidated financial statements comprise the financial statements of the Company and all of its subsidiaries.

Subsidiaries are consolidated from the date when the Group obtains control and are de-consolidated from the date when control ceases.

For a subsidiary that is acquired in a business combination involving enterprises under common control, it is included in the consolidatedfinancial statements from the date when it, together with the Company, comes under common control of the ultimate controlling party.The portion of the net profits realised before the combination date is presented separately in the consolidated income statement.

When preparing the consolidated financial statements, if the accounting policies and the accounting periods of the Company andsubsidiaries are inconsistent, the financial statements of the subsidiaries are adjusted in accordance with the accounting policies and theaccounting period of the Company. For subsidiaries acquired from business combinations involving enterprises not under commoncontrol, the individual financial statements of the subsidiaries are adjusted based on the fair value of the identifiable net assets at theacquisition date.

All significant intra-group balances, transactions and unrealised profits are eliminated in the consolidated financial statements. The

portion of subsidiaries’ equity and the portion of a subsidiaries’ net profits and losses and comprehensive incomes for the period not

attributable to Company are recognised as minority interests and presented separately in the consolidated financial statements underequity, net profits and total comprehensive income respectively. Unrealized profits and losses resulting from the sale of assets by theCompany to the subsidiary fully eliminate the net profits attributable to equity holders of the parent; unrealized profits and lossesresulting from the sale of assets by the subsidiary to the Company are eliminated and allocated between net profit attributable to ownersof the parent and minority interests in accordance with the allocation proportion of the Company in the subsidiary. Unrealized profits andlosses resulting from the sale of assets by one subsidiary to another are eliminated and allocated between net profit attributable to ownersof the parent and minority interests in accordance with the allocation proportion of the parent in the subsidiary.

If the accounting treatment of a transaction which considers the Group as an accounting entity is different from that considers theCompany or its subsidiaries as an accounting entity, it is adjusted from the perspective of the Group.

7. Confirmation standard of cash and cash equivalent

Cash and cash equivalents comprise cash on hand, deposits that can be readily drawn on demand, and short-term and highly liquidinvestments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

8. Translating of foreign currency operations and foreign currency report form

(a) Foreign currency transactions

Foreign currency transactions are translated into RMB using the exchange rates prevailing at the dates of the transactions.

At the balance sheet date, monetary items denominated in foreign currencies are translated into RMB using the spot exchange rates onthe balance sheet date. Exchange differences arising from these translations are recognised in profit or loss for the current period, exceptfor those attributable to foreign currency borrowings that have been taken out specifically for the acquisition or construction ofqualifying assets, which are capitalised as part of the cost of those assets. Non-monetary items denominated in foreign currencies that aremeasured at historical costs are translated at the balance sheet date using the spot exchange rates at the date of the transactions. The effectof exchange rate changes on cash is presented separately in the cash flow statement.

(b) Translation of foreign currency financial statements

The asset and liability items in the balance sheets for overseas operations are translated at the spot exchange rates on the balance sheet

date. Among the owners’ equity items, the items other than “undistributed profits” are translated at the spot exchange rates of the

transaction dates. The income and expense items in the income statements of overseas operations are translated at the spot exchange rates

of the transaction dates. The differences arising from the above translation are presented separately in the owners’ equity. The cash flows

of overseas operations are translated at the spot exchange rates on the dates of the cash flows. The effect of exchange rate changes oncash is presented separately in the cash flow statement.

9. Financial instruments

(a) Financial assets(i) Classifications of financial assetsFinancial assets are classified into the following categories at initial recognition: financial assets at fair value through profit or loss,receivables, available-for-sale financial assets and held-to-maturity investments. The classification of financial assets depends on the

Group’s intention and ability to hold the financial assets. The Group has no financial assets at fair value through profit or loss and

held-to-maturity investments for 2014.

Receivables

Receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Receivablescomprise notes receivable, accounts receivable and other receivables.

Available-for-sale financial assets

Available-for-sale financial assets are non-derivative financial assets that are either designated in this category or not classified in any ofthe other categories at initial recognition. Available-for-sale financial assets are included in other current assets on the balance sheet ifmanagement intends to dispose of them within 12 months after the balance sheet date.

(ii) Recognition and measurement

Financial assets are recognised at fair value on the balance sheet when the Group becomes a party to the contractual provisions of thefinancial instrument. The related transaction costs that are attributable to the acquisition of receivables and available-for-sale financialassets are included in their initial recognition amounts.

Available-for-sale financial assets are subsequently measured at fair value. Investments in equity instruments are measured at cost whenthey do not have a quoted market price in an active market and whose fair value cannot be reliably measured. Receivables are measuredat amortised cost using the effective interest method.

Gains or losses arising from change in fair value of available-for-sale financial assets are recognised directly in equity, except forimpairment losses and foreign exchange gains and losses arising from translation of monetary financial assets. When such financialassets are derecognised, the cumulative gains or losses previously recognised directly into equity are recycled into profit or loss for thecurrent period. Interests on available-for-sale investments in debt instruments calculated using the effective interest method during theperiod in which such investments are held and cash dividends declared by the investee on available-for-sale investments in equityinstruments are recognised as investment income, which is recognised in profit or loss for the period.

(iii) Impairment of financial assets

The Group assesses the carrying amounts of financial assets at each balance sheet date. If there is objective evidence that a financial assetis impaired, an impairment loss is provided for.

Objective evidence indicating impairment of financial assets refers to the matter that actually occurs after the initial recognition offinancial assets, it will affect estimated future cash flows of financial assets, and its impact can be reliably measured.

Objective evidence which indicates the occurrence of impairment for available-for-sale equity instruments includes significant ornon-temporary decrease of fair value of equity instruments investment. The Group conducts individual inspection on eachavailable-for-sale equity instruments investment at balance sheet date, if the fair value of the available-for-sale equity instrument is lessthan its initial investment cost for more than 50% (including 50%) or less than its initial investment cost continually for more than 1 year,that means impairment incurred; if the fair value of the available-for-sale equity instrument is less than its initial investment cost for morethan 20% (including 20%) but has not reached 50%, the Group will comprehensively consider other factors such as price volatility todetermine whether the equity instrument investment has been impaired. The Group calculates the initial investment cost of initialavailable-for-sale equity instruments investment using the weighted average method.

When an impairment loss on a financial asset carried at amortised cost has occurred, the amount of loss is provided for at the difference

between the asset’s carrying amount and the present value of its estimated future cash flows (excluding future credit losses that have not

been incurred). If there is objective evidence that the value of the financial asset recovered and the recovery is related objectively to anevent occurring after the impairment was recognised, the previously recognised impairment loss is reversed and the amount of reversal isrecognised in profit or loss.

If an impairment loss on available-for-sale financial assets measured at fair value is incurred, the cumulative losses arising from thedecline in fair value that had been recognised directly in shareholders' equity are transferred out from equity and into impairment loss.For an investment in debt instrument classified as available-for-sale on which impairment losses have been recognised, if, in asubsequent period, its fair value increases and the increase can be objectively related to an event occurring after the impairment loss wasrecognised in profit or loss, the previously recognised impairment loss is reversed into profit or loss for the current period. For aninvestment in an equity instrument classified as available-for-sale on which impairment losses have been recognised, the increase in itsfair value in a subsequent period is recognised directly in equity.

(iv) Derecognition of financial assets

Financial assets are derecognised when: i) the contractual rights to receive the cash flows from the financial assets have expired; or ii) allsubstantial risks and rewards of ownership of the financial assets have been transferred; or iii) the control over the financial asset hasbeen waived even if the Group does not transfer or retain nearly all of the risks and rewards relating to the ownership of a financial asset.

On derecognition of a financial asset, the difference between the carrying amount and the sum of the consideration received and thecumulative changes in fair value that had been recognised directly in owner's equity, is recognised in profit or loss.

(b) Financial liabilities

Financial liabilities are classified into two categories at initial recognition: financial liabilities at fair value through profit or loss and otherfinancial liabilities. Other financial liabilities in the Group mainly include payables, borrowings and bonds payable.Changes in fair value of financial liabilities at fair value through profit or loss are recognized in the income statement.

Payables comprise accounts payable, notes payable and other payables, which are recognised initially at fair value and measuredsubsequently at amortised cost using the effective interest method.

Borrowings and bonds payable are recognised initially at fair value, net of transaction costs incurred, and subsequently measured atamortised cost using the effective interest method.

Other financial liabilities within one year (including one year) is presented as current liabilities, while non-current financial liabilities duewith one year (including one year) is reclassified as non-current liabilities due within one year. Others are presented as non-currentliabilities.

A financial liability (or a part of a financial liability) is derecognised when all or part of the obligation is extinguished. The differencebetween the carrying amount of a financial liability (or a part of financial liability) extinguished and the consideration paid is recognisedin the income statement.

(c) Determination of fair value of financial instruments

The fair value of a financial instrument that is traded in an active market is determined at the quoted price in the active market. The fairvalue of a financial instrument that is not traded in an active market is determined by using a valuation technique. During valuation, theGroup adopts a valuation technique suitable for current situation, which is supported by sufficient available data and other information,chooses the inputs consistent with the feature of assets or liabilities considered in the transaction thereof with market participants, anduses related observable inputs in preference to the greatest extent. Unobservable inputs are used when it is unable to obtain or isinfeasible for related observable inputs.

10. Recognition standard impairment and receivables(1) Bad debt provision on receivable accounts with major amount individually

Basis of recognition or standard amount of Receivables that are individually significantThe basis or amount for individually significant receivables is individually greater than 20 million.
Basis of bad debt provisionReceivables that are individually significant are subject to separate impairment assessment. A provision for impairment of the receivable is recognized if there is objective evidence that the Group will not be able to collect the full amounts according to the original terms.

(2) Receivables that are provided for provision based on their credit risk characteristics

Name of the portfolioBasis of bad debt provision
Portfolio 1according to percentage of balance method
Portfolio 2according to percentage of balance method

Accounts on aging analysis basis in the portfolio:

□Applicable √Non-applicable

Accounts on percentage basis in the portfolio:

√Applicable □Non-applicable

Name of the portfolioPercentage of provision for accounts receivable(%)Percentage of provision for other receivables(%)
Portfolio 12%2%
Portfolio 22%2%

Accounts on other basis in the portfolio:

□Applicable √Non-applicable

(3) The method of provision for impairment of receivables that are individually significant

Reason for providing bad debt individually:A provision for impairment of the receivable is recognized if there is objective evidence that the Group will not be able to collect the full amounts according to the original terms.
Basis of bad debt provision:The provision for impairment of the receivable is established at the difference between the carrying amount of the receivable and the present value of estimated future cash flows.

11. Inventories

(a)ClassificationInventories refer to manufacturing sector, including raw materials, work in progress, finished goods and turnover materials, and aremeasured at the lower of cost and net realisable value.

(b)Inventory costing methodCost is determined using the weighted average method. The cost of finished goods and work in progress comprise raw materials,direct labour and systematically allocated production overhead based on the normal production capacity.

(c)Amortisation methods of low value consumables and packaging materialsTurnover materials include low value consumables and packaging materials, which are expensed when issued.

(d)The determination of net realisable value and the method of provision for impairment of inventoriesProvision for decline in the value of inventories is determined at the excess amount of the carrying amounts of the inventories overtheir net realisable value. Net realisable value is determined based on the estimated selling price in the ordinary course of business,less the estimated costs to completion and estimated costs necessary to make the sale and related taxes.

(e)The Group adopts the perpetual inventory system.

12. Classified as assets held for sale

A non-current asset or a disposal group is classified as held for sale when all of the following conditions are satisfied: (1) the non-current

asset or the disposal group is available for immediate sale in its present condition subject only to terms that are usual and customary forsales of such non-current asset or disposal group; (2) the group has signed with other parties legally binding sale agreement and approvalhas been obtained, is expected to the sale will be completed within one year.

Non-current assets (except for financial assets and deferred tax assets) that meet the recognition criteria for held for sale are recognised atthe amount equal to the lower of the fair value less costs to sell and the carrying amount. The difference between fair value less costs to

sell and the carrying amount should be presented as impairment loss.

Such non-current assets and assets included in disposal groups as classified as held for sale are accounted for as current assets; whileliabilities included in disposal groups classified as held for sale are accounted for as current liabilities, which are presented separately inthe balance sheet.

A discontinued operation is a component of the Group that either has been disposed of or is classified as held for sale, and is separatelyidentifiable operationally and for financial reporting purposes, and satisfies one of the following conditions: (1) represents a separatemajor line of business or geographical area of operations; (2) is part of a single coordinated plan to dispose of a separate major line ofbusiness or geographical area of operations; and (3) is a subsidiary acquired exclusively with a view to resale.Earnings from discontinued operations stated in the income statement include operating profit and loss and disposal gains and losses.

13. Long-term equity investments

Long-term equity investments comprise the Company’s long-term equity investments in its subsidiaries, and the Group’s long-term

equity investments in its associates.

Subsidiaries are the investees over which the Company is able to exercise control. Associates are the investees that the Group hassignificant influence on their financial and operating policies.

Investments in subsidiaries are measured using the cost method in the Company’s financial statements, and adjusted by using the

equity method when preparing the consolidated financial statements. Investments in associates are accounted for using the equitymethod. Long-term equity investments where the Group does not have control, joint control or significant influence over theinvestees, and which are not quoted in an active market and whose fair value cannot be reliably measured are measured using thecost method.

a. Initial recognition

For long-term equity investments formed in business combination: when obtained from business combinations involving entitiesunder common control, the long-term equity investment is stated at carrying amount of equity for the combined parties at the timeof merger; when the long-term equity investment obtained from business combinations involving entities not under commoncontrol, the investment is measured at combination cost.

For long-term equity investments not formed in business combination: the one paid by cash is initially measured at actual purchaseprice; the long-term investment obtained by issuing equity securities is stated at fair value of equity securities as initial investmentcost.

b. Subsequent measurement and recognition method of profit or loss

Long-term equity investments accounted for using the cost method are measured at initial investment cost. Cash dividend or profitdistribution declared by the investees is recognised as investment income in profit or loss.

For long-term equity investments accounted for using the equity method, where the initial investment cost exceeds the Group’sshare of the fair value of the investee’s identifiable net assets at the time of acquisition, the investment is initially measured at cost.Where the initial investment cost is less than the Group’s share of the fair value of the investee’s identifiable net assets at the time

of acquisition, the difference is included in profit or loss for the current period and the cost of the long-term equity investment isadjusted upwards accordingly.

For long-term equity investments accounted for using the equity method, the Group recognises the investment income according toits share of net profit or loss of the investee. The Group discontinues recognising its share of the net losses of an investee after thecarrying amounts of the long-term equity investment together with any long-term interests that in substance form part of the

investor’s net investment in the investee are reduced to zero. However, if the Group has obligations for additional losses and the

criteria with respect to recognition of provisions under the accounting standards on contingencies are satisfied, the Group continues

recognising the investment losses and the provisions. For changes in owners’ equity of the investee other than those arising from its

net profit or loss, its proportionate share is directly recorded into capital surplus, provided that the proportion of shareholding of the

Group in the investee remains unchanged. The carrying amount of the investment is reduced by the Group’s share of the profit

distribution or cash dividends declared by an investee. The unrealised profits or losses arising from the transactions between the

Group and its investees are eliminated in proportion to the Group’s equity interest in the investees, based on which the investment

gain or losses are recognised. Any losses resulting from transactions between the Group and its investees attributable to assetimpairment losses are not eliminated.

c. Definition of control, joint control and significant influence over the investees

The term "control" refers to the power in the investees, to obtain variable returns by participating in the related business activitiesof the investees, and the ability to affect the returns by exercising its power over the investees.

The term "significant influence" refers to the power to participate in the formulation of financial and operating policies of anenterprise, but not the power to control, or jointly control, the formulation of such policies with other parties.

d. Impairment of long-term equity investments

The carrying amount of long-term equity investments in subsidiaries and associates is reduced to the recoverable amount when therecoverable amount is less than the carrying amount.

14. Fixed assets

(1) Recognition and initial measurementFixed assets comprise buildings, machinery and equipment, motor vehicles and others. Fixed assets are recognised when it isprobable that the related economic benefits will flow to the Group and the costs can be reliably measured. Fixed assets purchased or

constructed by the Group are initially measured at cost at the time of acquisition.Subsequent expenditures incurred for a fixed assetare included in the cost of the fixed asset when it is probable that the associated economic benefits will flow to the Group and therelated cost can be reliably measured. The carrying amount of the replaced part is derecognised. All the other subsequentexpenditures are recognised in profit or loss in the period in which they are incurred.

(2) Depreciation

CategoriesDepreciation methodDepreciation age (year)Salvage Value Rate (%)Annual depreciation rate (%)
Houses & buildingsstraight-line method20–355%2.71% ~ 4.75%
Equipment & machinerystraight-line method8–155%4.75%~11.88%
Transportation equipment and othersstraight-line method5–80%12.50%~20%

15. Construction in progress

Construction in progress is measured at actual cost. Actual cost comprises construction costs, installation costs, borrowing coststhat are eligible for capitalisation and other costs necessary to bring the fixed assets ready for their intended use. Actual costalso includes net of trial production cost and trial production income before construction in progress is put into production.

Construction in progress is transferred to fixed assets when the assets are ready for their intended use, and depreciation beginsfrom the following month.

The carrying amount of construction in progress is reduced to the recoverable amount when the recoverable amount is belowthe carrying amount.

16. Borrowing costs

The borrowing costs that are directly attributable to the acquisition and construction of a fixed asset that needs a substantiallylong period of time for its intended use commence to be capitalised and recorded as part of the cost of the asset whenexpenditures for the asset and borrowing costs have been incurred, and the activities relating to the acquisition and constructionthat are necessary to prepare the asset for its intended use have commenced. The capitalisation of borrowing costs ceases whenthe asset under acquisition or construction becomes ready for its intended use and the borrowing costs incurred thereafter arerecognised in profit or loss for the current period. Capitalisation of borrowing costs is suspended during periods in which theacquisition or construction of a fixed asset is interrupted abnormally and the interruption lasts for more than 3 months, until theacquisition or construction is resumed.

For the specific borrowings obtained for the acquisition or construction of a fixed asset qualifying for capitalisation, the amountof borrowing costs eligible for capitalisation is determined by deducting any interest income earned from depositing the unusedspecific borrowings in the banks or any investment income arising on the temporary investment of those borrowings during thecapitalisation period.

For the general borrowings obtained for the acquisition or construction of a fixed asset qualifying for capitalisation, the amount of

borrowing costs eligible for capitalisation is determined by applying the weighted average effective interest rate of generalborrowings, to the weighted average of the excess amount of cumulative expenditures on the asset over the amount of specificborrowings. The effective interest rate is the rate at which the estimated future cash flows during the period of expected duration ofthe borrowings or applicable shorter period are discounted to the initial amount of the borrowings.

17. Intangible assets(1) Pricing of intangible assets

Intangible assets including land use rights and, patents and exploitation rights, intangible assets are measured at cost.

(a)Land use rights

Land use rights are amortised on the straight-line basis over their approved use period of 30 to 70 years. If the acquisition costs of theland use rights and the buildings located thereon cannot be reasonably allocated between the land use rights and the buildings, all of theacquisition costs are recognised as fixed assets.

(b)Patents

Patents are amortised on a straight-line basis over the patent protection period of 10 years as stipulated by the laws.

(c)Exploitation rights

Exploitation rights are amortized on a straight-line basis over permitted exploitation periods of 10 years set out on the exploitationcertificate.

(d)Periodical review of useful life and amortisation method

For an intangible asset with a finite useful life, review of its useful life and amortisation method is performed at each year-end, withadjustment made as appropriate.

(e) If the recoverable amount of intangible asset is less than its carrying value, the carrying value is deducted to recoverable amount.

(2) Research and development

The expenditure on an internal research and development project is classified into expenditure on the research phase and expenditure onthe development phase based on its nature and whether there is material uncertainty that the research and development activities canform an intangible asset at end of the project.

Expenditure on the research phase related to planned survey, evaluation and selection for research on manufacturing technique isrecognised in profit or loss in the period in which it is incurred. Prior to mass production, expenditure on the development phase relatedto the design and testing phase in regards to the final application of manufacturing technique is capitalised only if all of the followingconditions are satisfied:

The development of manufacturing technique has been fully demonstrated by technical team;

The management has approved the budget for the development of manufacturing technique;There exists research and analysis of pre-market research explaining that products manufactured with such technique are capable ofmarketing;There is sufficient technical and capital to support the development of manufacturing technique and subsequent mass production; andthe expenditure on manufacturing technique development can be reliably gathered.

Other development expenditures that do not meet the conditions above are recognised in profit or loss in the period in which they areincurred. Development costs previously recognised as expenses are not recognised as an asset in a subsequent period. Capitalisedexpenditure on the development phase is presented as development costs in the balance sheet and transferred to intangible assets at thedate that the asset is ready for its intended use.

18. Impairment of long-term assets

Fixed assets, construction in progress, intangible assets with finite useful lives and long-term equity investments in joint ventures andassociates are tested for impairment if there is any indication that the assets may be impaired at the balance sheet date; intangible assetsnot ready for their intended use are tested at least annually for impairment, irrespective of whether there is any indication that they maybe impaired. If the result of the impairment test indicates that the recoverable amount of an asset is less than its carrying amount, a

provision for impairment and an impairment loss are recognised for the amount by which the asset’s carrying amount exceeds itsrecoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and the present value of the future

cash flows expected to be derived from the asset. Provision for asset impairment is determined and recognised on the individual assetbasis. If it is not possible to estimate the recoverable amount of an individual asset, the recoverable amount of a group of assets to whichthe asset belongs is determined. A group of assets is the smallest group of assets that is able to generate independent cash inflows.

Goodwill that is separately presented in the financial statements is tested at least annually for impairment, irrespective of whether thereis any indication that it may be impaired. In conducting the test, the carrying value of goodwill is allocated to the related asset groups orgroups of asset groups which are expected to benefit from the synergies of the business combination. If the result of the test indicatesthat the recoverable amount of an asset group or group of asset groups, including the allocated goodwill, is lower than its carryingamount, the corresponding impairment loss is recognised. The impairment loss is first deducted from the carrying amount of goodwillthat is allocated to the asset group or group of asset groups, and then deducted from the carrying amounts of other assets within the assetgroups or groups of asset groups in proportion to the carrying amounts of assets other than goodwill.

Once the above asset impairment loss is recognised, it will not be reversed for the value recovered in the subsequent periods.

19. Long-term prepaid expenses

Long-term prepaid expenses include the expenditures that have been incurred but should be recognised as expenses over more than oneyear in the current and subsequent periods. Long-term prepaid expenses are amortised on the straight-line basis over the expectedbeneficial period and are presented at actual expenditure net of accumulated amortisation.

20. Employee benefits

(1) Short-term employee benefits accounting methodShort-term employee benefits include employee wages or salaries, bonus, allowances and subsidies, staff welfare, premiums orcontributions on medical insurance, work injury insurance and maternity insurance, housing funds, union running costs and employeeeducation costs, short-term paid absences. The employee benefit liabilities are recognised in the accounting period in which the service

is rendered by the employees, with a corresponding charge to the profit or loss for the current period or the cost of relevant assets.Employee benefits which are non-monetary benefits shall be measured at fair value.

(2)Post-employment benefits accounting method

The Group classifies post-employment benefit plans as either defined contribution plans or defined benefit plans. Defined contributionplans are post-employment benefit plans under which the Group pays fixed contributions into a separate fund and will have noobligation to pay further contributions; and Defined benefit plans are post-employment benefit plans other than defined contributionplans. During the reporting period, the Group's post-employment benefits mainly include basic pensions and unemployment insurance,both of which belong to the defined contribution plans.

Basic pensions

The Group’s employees participate in the basic pension plan set up and administered by local authorities of Ministry of Human

Resource and Social Security. Monthly payments of premiums on the basic pensions are calculated according to prescribed bases andpercentage by the relevant local authorities. When employees retire, the relevant local authorities are obliged to pay the basic pensionsto them. The amounts based on the above calculations are recognised as liabilities in the accounting period in which the service hasbeen rendered by the employees, with a corresponding charge to the profit or loss for the current period or the cost of relevant assets.

(3)Termination benefits accounting method

The Group provides compensation for terminating the employment relationship with employees before the end of the employmentcontracts or as an offer to encourage employees to accept voluntary redundancy before the end of the employment contracts. The Grouprecognises a liability arising from compensation for termination of the employment relationship with employees, with a correspondingcharge to profit or loss at the earlier of the following dates: 1) when the Group cannot unilaterally withdraw the offer of terminationbenefits because of an employment termination plan or a curtailment proposal; 2) when the Group recognises costs or expenses relatedto the restructuring that involves the payment of termination benefits.

The termination benefits expected to be paid within one year since the balance sheet date are classified as current liabilities.

21. Provisions

Business restructuring, provisions for product warranties, onerous contracts etc. are recognised when the Group has a present obligation,it is probable that an outflow of economic benefits will be required to settle the obligation, and the amount of the obligation can bemeasured reliably.A provision is initially measured at the best estimate of the expenditure required to settle the related present obligation. Factorssurrounding a contingency, such as the risks, uncertainties and the time value of money, are taken into account as a whole in reachingthe best estimate of a provision. Where the effect of the time value of money is material, the best estimate is determined by discountingthe related future cash outflows. The increase in the discounted amount of the provision arising from passage of time is recognised asinterest expense.The carrying amount of provisions is reviewed at each balance sheet date and adjusted to reflect the current best estimate.

The provision expected to be paid within one year since the balance sheet date are classified as current liabilities.

22. Revenue recognition

The amount of revenue is determined in accordance with the fair value of the consideration received or receivable for the Sale of goods

and services in the ordinary course of the Group’s activities. Revenue is shown net of discounts, rebates and returns.

Revenue is recognised when the economic benefits associated with the transaction will flow to the Group, the related revenue can be

reliably measured, and the specific revenue recognition criteria have been met for each type of the Group’s activities as described

below:

(a)Sale of goods

The Group mainly sells glass, and products related to solar energy, new energy applications and electronic glass and display. Fordomestic sales, the Group delivers the products to a certain place specified in the contract. When the buyer takes over the goods, theGroup recognizes revenue. For export sales, the Group recognizes the revenue when it finished clearing goods for export and deliverthe goods on board the vessel, or when the goods are delivered to a certain place specified in the contract. For above sales, when thebuyer takes over the goods, the buyer has the right to sell the products, and should bear the risk of price fluctuation or goods damage(b)Rendering of services

Revenue is recognized for the rendering of service by the Group to external parties upon the completion of related service.

(c)Transfer of asset use rights

Interest income is recognized on a time-proportion basis using the effective interest method.

23. Government grants(1)Judgment basis and accounting method of government grants related to an asset

Government grants are the monetary asset the Group receives from the government for free, including tax refund, government subsidies,etc.

Grants from the government are recognised when there is a reasonable assurance that the grants will be received and the Group willcomply with all attached conditions. Monetary government grants are measured at the amounts received or receivable. Non-monetarygovernment grant are measured at fair value, if the fair value cannot be reliably obtained, it is measured at nominal amount.

Government grants related to an asset refer to the government assets which are obtained by enterprises for the purposes of purchase orconstruction of, or which form the long-term assets by other ways. Government grants related to income refers to government grantsother than those related to assets.

Government grants related to the assets are offset against the carrying amount of the underlying assets or recognized as deferred incomeand are accounted for in profit or loss in a reasonable and systematic manner within the useful life of the relevant assets.

(2) Judgment basis and accounting method of government grants related to income

Government grants related to income which are used to compensate for the related costs or losses during the subsequent period are

recognized as deferred income and are recognized in the current profit or loss or related expenses for the period of recognition of therelevant cost expense or loss. The relevant expenses or losses incurred, directly included in the current profits and losses or offset therelevant costs. Similar government grants use the same presentation. Government grants related to daily activities are incorporated intooperating profit, while those unrelated to daily activities are incorporated into non - operating income and expenditure.

25. Deferred tax assets and deferred tax liabilities

Deferred tax assets and deferred tax liabilities are calculated and recognised based on the differences arising between the tax bases ofassets and liabilities and their carrying amounts (temporary differences). Deferred tax asset is recognised for the deductible losses thatcan be carried forward to subsequent years for deduction of the taxable profit in accordance with the tax laws. No deferred tax liabilityis recognised for a temporary difference arising from the initial recognition of goodwill. No deferred tax asset or deferred tax liability isrecognised for the temporary differences resulting from the initial recognition of assets or liabilities due to a transaction other than abusiness combination, which affects neither accounting profit nor taxable profit (or deductible loss). At the balance sheet date, deferredtax assets and deferred tax liabilities are measured at the tax rates that are expected to apply to the period when the asset is realised orthe liability is settled.

Deferred tax assets are only recognised for deductible temporary differences, deductible losses and tax credits to the extent that it isprobable that taxable profit will be available in the future against which the deductible temporary differences, deductible losses and taxcredits can be utilised.

Deferred tax liabilities are recognised for temporary differences arising from investments in subsidiaries and associates, except wherethe Group is able to control the timing of reversal of the temporary difference, and it is probable that the temporary difference will notreverse in the foreseeable future. When it is probable that the temporary differences arising from investments in subsidiaries andassociates will be reversed in the foreseeable future and that the taxable profit will be available in the future against which thetemporary differences can be utilised, the corresponding deferred tax assets are recognised.

Deferred tax assets and liabilities are offset when:

·deferred income tax assets and deferred income tax liabilities are related to the income tax levied by the same the same taxationauthority on the same taxpayer in the group;·that tax payer within the Group has a legally enforceable right to offset current tax assets against current tax liabilities.

25. Leases(1) Accounting method of operating lease

Lease payments under an operating lease are recognised on a straight-line basis over the period of the lease, and are either capitalised aspart of the cost of related assets, or charged as an expense for the current period.

Lease income under an operating lease is recognised as revenue on a straight-line basis over the period of the lease.

(2) Accounting method of financing lease

A lease that transfers substantially all the risks and rewards incidental to ownership of an asset is a finance lease. An operating lease is

a lease other than financing lease.

26. Other significant accounting policies and accounting estimates

The Group continually evaluates the critical accounting estimates and key assumption applied based on historical experience and otherfactors, including expectations of future events that are believed to be reasonable.

The critical accounting estimates and key assumptions that have a significant risk of causing a material adjustment to the carryingamounts of assets and liabilities within the next accounting year are outlined below:

(a)Income taxes

The Group is subject to income taxes in numerous jurisdictions. There are many transactions and events for which the ultimate taxdetermination is uncertain during the ordinary course of business. Significant judgement is required from the Group in determining theprovision for income taxes in each of these jurisdictions. Where the final tax outcome of these matters is different from the amounts thatwere initially recorded, such differences will impact the income tax and deferred tax provisions in the period in which suchdetermination is made.

(b)Deferred income tax

Estimates on deferred tax assets are based on estimates on amount of taxable income and applicable tax rate for every year.Realization of deferred income tax is subject to sufficient taxable income that is possible to be obtained by the Group in the future.Change of the future tax rate as well as the reversed time of temporary difference might have effects on tax expense (income) and thebalance of deferred tax assets or liabilities. Those estimates may also cause significant adjustment on deferred tax.

(c)Impairment of long-term assets (excluding goodwill)

Long-term assets at the balance sheet date should be subject to impairment testing if there are any indications of impairment. Themanagement determines whether the long-term assets impaired or not by evaluating and analysing following aspects: (1) whether theevent affecting assets impairment occurs; (2) whether the expected obtainable present value of future cash flows is lower than the

asset’s carrying amount by continually using the assets or disposal; and (3) whether the assumptions used in expected obtainable

present value of future cash flows are appropriate.

Various assumptions, including the discount rate and growth rate applied in the method of present value of future cash flow, arerequired in evaluating the recoverable amount of assets. If these assumptions cannot be conformed, the recoverable amount should bemodified, and the long-term assets may be impaired accordingly.

(d)The useful life of fixed assets

The management estimates the useful life of fixed assets, based on historical experiences on using fixed assets that have similarproperties and functions. When there are differences between actually useful life and previously estimation, the management willadjust estimation to useful life of fixed assets. The fixed assets would be written off or written down when fixed assets been disposed orbecame redundant. There will be difference between the results of estimation and actual results for next accounting period, sosignificant adjustments may be made to the carrying amount of fixed assets in balance sheet.

(e)Goodwill impairment

The Group tests annually whether goodwill has suffered any impairment. The recoverable amount of asset groups and groups of assetgroups is the present value of the future cash flows expected to be derived from them. These calculations require use of estimates (Note4 (12)).

If management revises the gross margin that is used in the calculation of the future cash flows of asset groups and groups of asset groups,and the revised gross margin is lower than the one currently used, the Group would need to recognise further impairment againstgoodwill.

If management revises the pre-tax discount rate applied to the discounted cash flows, and the revised pre-tax discount rate is higher thanthe one currently applied, the Group would need to recognise further impairment against goodwill.

If the actual gross margin/pre-tax discount rate is higher/lower than management’s estimates, the impairment loss of goodwill

previously provided for is not allowed to be reversed by the Group

27. Changes in significant accounting policies and accounting estimates(1) Changes in significant accounting policies

√Applicable □Not applicable

The content and reasons of accounting policy changesApproval procedureRemarks
The Ministry of Finance promulgated the revised Accounting Standard for Business Enterprises No. 16 - Government Grants on May 10, 2017. The Company has adopted the above guidelines to prepare the semi-annual financial statements for 2017.Board of directorsNo influence

The Ministry of Finance promulgated the revised Accounting Standard for Business Enterprises No. 16 - Government Grants on May10, 2017. The Company has adopted the above guidelines to prepare the semi-annual financial statements for 2017. It had no effect onthe Group's consolidated balance sheet and the Company's balance sheet as at 31 December 2016 and the consolidation and theCompany's income statement for the six months ended 30 June 2016.

(2)Changes in significant accounting estimates

□Applicable √ Not applicable

28. Others

Safety production costs

According to relevant regulations of the Ministry of Finance and National Administration of Work Safety, a subsidiary of the Groupwhich is engaged in producing and selling polysilicon appropriates safety production costs on following basis:

(a) 4% for revenue below RMB10 million (inclusive) of the year;

(b) 2% for the revenue between RMB10 million to RMB100 million (inclusive) of the year;(c) 0.5% for the revenue between RMB100 million to RMB1 billion (inclusive) of the year;(d) 0.2% for the revenue above RMB1 billion of the year.

The safety production costs is mainly used for the overhaul, renewal and maintenance of safety facilities. The safety production costsare charged to costs of related products or profit orloss when appropriated, and safety production costs in equity account are creditedcorrespondingly. When using the special reserve, if the expenditures are expenses in nature, the expenses incurred are offset against thespecial reserve directly when incurred. If the expenditures are capital expenditures, when projects are completed and transferred tofixed assets, the special reserve should be offset against the cost of fixed assets, and a corresponding accumulated depreciation arerecognised. The fixed assets are no longer be depreciated in future.

Segment information

The Group identifies operating segments based on the internal organisation structure, management requirements and internal reportingsystem, and discloses segment information of reportable segments which is determined on the basis of operating segments.

An operating segment is a component of the Group that satisfies all of the following conditions: (1) the component is able to earn

revenues and incur expenses from its ordinary activities; (2) whose operating results are regularly reviewed by the Group’s

management to make decisions about resources to be allocated to the segment and to assess its performance, and (3) for which theinformation on financial position, operating results and cash flows is available to the Group. If two or more operating segments havesimilar economic characteristics and satisfy certain conditions, they are aggregated into one single operating segment.

VI. Taxation

1. The main categories and rates of taxes

Tax itemsTax basisTax rate
Value added tax (“VAT”)Taxable value added amount (Tax payable is calculated using the taxable sales amount multiplied by the effective tax rate less current period’s deductible VAT input )6%-17%
Urban construction taxTotal VAT, Business tax and GST1%-7%
Enterprise income taxTaxable income0%-25%
Educational surtaxTotal VAT, Business tax and GST3%-5%
Resource taxQuantities of Silica soldRMB 3 per ton

2. Tax incentives

The main tax incentives the Group is entitled to are as follows:

Tianjin Energy Conservation Glass Co., Ltd. (“Tianjin Energy Conservation”) passed review on a high and new tech enterprise in 2015

and obtained the Certificate of High and New Tech Enterprise, the period of validity is three years. It applies to 15% tax rate for threeyears since 2015.

Dongguan CSG Architectural Glass Co., Ltd. (“Dongguan CSG”) passed review on a high and new tech enterprise in 2016 and

obtained the Certificate of High and New Tech Enterprise, the period of validity is three years. It applies to 15% tax rate for three yearssince 2016.

Wujiang CSG North-east Architectural Glass Co., Ltd. (“Wujiang CSG”) passed review on a high and new tech enterprise in 2014 and

obtained the Certificate of High and New Tech Enterprise, the period of validity is three years. It applies to 15% tax rate for three yearssince 2014. It is on a review of high and new tech enterprise at present, and temporarily applies to 15% income tax rate for the period.

Dongguan CSG Solar Glass Co., Ltd. (“Dongguan CSG Solar”) passed review on a high and new tech enterprise in 2014 and obtained

the Certificate of High and New Tech Enterprise, the period of validity is three years. It applies to 15% tax rate for three years since2014. It is on a review of high and new tech enterprise at present, and temporarily applies to 15% income tax rate for the period.

Yichang CSG Silicon Co., Ltd. (“Yichang CSG Silicon”) passed review on a high and new tech enterprise in 2014 and obtained the

Certificate of High and New Tech Enterprise, the period of validity is three years. It applies to 15% tax rate for three years since 2014.It is on a review of high and new tech enterprise at present, and temporarily applies to 15% income tax rate for the period.

Dongguan CSG PV-tech Co., Ltd. (“Dongguan CSG PV-tech”) passed review on a high and new tech enterprise in 2016 and obtained

the Certificate of High and New Tech Enterprise, the period of validity is three years. It applies to 15% tax rate for three years since2016.

Hebei Shichuang Glass Co., Ltd. (“Hebei Shichuang”) passed review on a high and new tech enterprise in 2016 and obtained the

Certificate of High and New Tech Enterprise, the period of validity is three years. It applies to 15% tax rate for three years since 2016.

Wujiang CSG Glass Co., Ltd. (“Wujiang CSG”) was recognised as a high and new tech enterprise in 2014, and obtained the Certificate

of High and New Tech Enterprise, and the period of validity was three years. It applies to 15% tax rate for three years since 2014. It ison a review of high and new tech enterprise at present, and temporarily applies to 15% income tax rate for the period.

Xianning CSG Glass Co Ltd. (“Xianning CSG”) was recognised as a high and new tech enterprise in 2014, and obtained the Certificate

of High and New Tech Enterprise, and the period of validity was three years. It applies to 15% tax rate for three years since 2014. It ison a review of high and new tech enterprise at present, and temporarily applies to 15% income tax rate for the period.

Xianning CSG Energy-Saving Glass Co., Ltd. (“Xianning CSG Energy-Saving”) was recognised as a high and new tech enterprise in

2015, and obtained the Certificate of High and New Tech Enterprise, and the period of validity was three years. It applies to 15% taxrate for three years since 2015.

Yichang CSG Photoelectric Glass Co., Ltd. (“Yichang CSG Photoelectric”) was recognised as a high and new tech enterprise in 2015,

and obtained the Certificate of High and New Tech Enterprise, and the period of validity was three years. It applies to 15% tax rate forthree years since 2015.

Shenzhen CSG Display was recognised as a high and new tech enterprise in 2015, and obtained the Certificate of High and New TechEnterprise, and the period of validity was three years. It applies to 15% tax rate for three years since 2015.

Yichang CSG Display Co., Ltd (“Yichang CSG Display”) was recognised as a high and new tech enterprise in 2016, and obtained the

Certificate of High and New Tech Enterprise, and the period of validity was three years. It applies to 15% tax rate for three years since

2016.

Qingyuan CSG New Energy-Saving Materials Co., Ltd. (“Qingyuan CSG Energy-Saving”) was recognised as a high and new tech

enterprise in 2016, and obtained the Certificate of High and New Tech Enterprise, and the period of validity was three years. It appliesto 15% tax rate for three years since 2016.

Sichuan CSG Energy Conservation Glass Co., Ltd. (“Sichuan CSG Energy Conservation”) obtains enterprise income tax preferential

treatment for Western Development, and temporarily calculates enterprise income tax at a tax rate of 15% for the period.

Chengdu CSG Glass Co., Ltd. (“Chengdu CSG”) obtains enterprise income tax preferential treatment for Western Development, and

temporarily calculates enterprise income tax at a tax rate of 15% for the period.

Qingyuan CSG New Energy Co., Ltd. (“Qingyuan CSG New Energy”), Suzhou CSG PV Energy Co., Ltd. (“Suzhou CSG PV Energy”),Jiangsu Wujiang CSG New Energy Co., Ltd. (“Wujiang CSG New Energy”), and Yichang CSG New Energy Co., Ltd. (“Yichang CSGNew Energy”) are public infrastructure project specially supported by the state in accordance with the Article 87 in Implementing

Regulations of the Law of the People's Republic of China on Enterprise Income Tax, and can enjoy the tax preferential policy of

“three-year exemptions and three-year halves”, that is, starting from the tax year when the first revenue from production and operation

occurs, the enterprise income tax is exempted from the first to the third year, while half of the enterprise income tax is collected for thefollowing three years. Qingyuan CSG New Energy, Suzhou CSG PV Energy and Wujiang CSG New Energy started to carry outoperations in 2015, while Yichang CSG New Energy started operation in 2016. The applicable enterprise income tax rate for them is0% for the period.

In addition, pursuant to the document Fogang Guo Shui Shui Tong [2015] No. 2489, the VAT for photovoltaic power generation ofQingyuan CSG New Energy is subject to the refund upon collection policy.

3. Others

Some subsidiaries of the Group have used the “exempt, credit, refund” method on goods exported and the refund rate is 5%-17%.

VII. Notes to the consolidated financial statements

1. Cash at bank and on hand

Unit: RMB

ItemBalance at the end of the periodBalance at the beginning of the period
Cash on hand27,53017,239
Cash at bank932,022,992584,549,751
Other cash balances2,184,6792,236,515
Total934,235,201586,803,505
Including: Total overseas deposit19,394,57512,956,226

Other cash balances include margin deposits for the application of opening letter of credit and loan from the bank, amounting to RMB

2,184,679 (31 Dec. 2016: RMB 2,236,515), which is restricted cash.

2. Notes receivable(1) Notes receivable listed by classification

Unit: RMB

ItemBalance at the end of the periodBalance at the beginning of the period
Bank acceptance notes248,524,397138,557,412
Trade acceptance notes288,032,806317,789,825
Total536,557,203456,347,237

(2) Notes receivable which has been endorsed or discounted at the end of the term by the Company but notyet due at balance sheet date

Unit: RMB

ItemAmount of recognition termination at the period-endAmount of not terminated recognition at the period-end
Bank acceptance notes1,647,228,930
Trade acceptance notes181,790,787
Total1,647,228,930181,790,787

3. Accounts receivable(1) Accounts receivable disclosed by category

Unit: RMB

CategoriesEnd of termBeginning of term
Book balanceBad debt provisionBook valueBook balanceBad debt provisionBook value
AmountProportion %AmountProportion %AmountProportion %AmountProportion %
Accounts receivable withdrawn bad debt provision according to credit risks characteristics684,955,96098%13,168,9762%671,786,984631,863,58598%12,187,5342%619,676,051
Account receivable with minor individual amount but bad12,404,0702%4,247,13934%8,156,93112,590,7892%4,280,85734%8,309,932
debt provision is provided
Total697,360,030100%17,416,1152%679,943,915644,454,374100%16,468,3913%627,985,983

Accounts receivable with large amount individually and bad debt provisions were provided

□ Applicable √ Non-applicable

Accounts receivable on which bad debt provisions are provided on age analyze basis in the portfolio

□ Applicable √ Non-applicable

Accounts receivable on which bad debt provisions are provided on percentage analyze basis in a portfolio

√Applicable □ Non-applicable

Unit: RMB

Name of portfolioClosing balalnce
Accounts receivableBad debt provisionProportion %
Portfolio 1684,955,96013,168,9762%
Portfolio 2
Total684,955,96013,168,9762%

(2) Accounts receivable withdraw, reversed or collected during the reporting period

The withdrawal amount of the bad debt provision during the report period was of RMB 5,374,252. The amount of the reversed orcollected part during the report period was of RMB 4,358,997.

(3) The actual write-off accounts receivable

Unit: RMB

ItemWrite-off amount
Accounts receivable67,531

(4) Top 5 of the closing balance of the accounts receivable colleted according to the arrears party

As at 30 June 2017, the top 5 of the closing balance of the accounts receivable colleted according to the arrears party were collectedand analyzed as follows:

BalanceProvision for bad debtsPercentage in total accounts receivable balance
Total balances for the five largest accounts receivable169,168,209(3,383,364)24%

4. Advances to suppliers(1) Listed by aging analysis

Unit: RMB

AgeClosing balanceOpening balance
AmountProportion ratio (%)AmountProportion ratio (%)
within 1 year148,306,53391%80,819,38784%
1-2 years13,940,8449%14,913,74516%
Total162,247,377--95,733,132--

As at 30 June 2017, advances to suppliers ageing over one year amount to RMB13,940,844 (31 December 2016: RMB14,913,745).They were mainly the advances of materials, and the payment had not been selected because the materials had not been received.

(2) Top 5 of the closing balance of the advances to suppliers colleted according to the target

As at 30 June 2017, the top five largest advances to supplies are set out as below:

BalancePercentage in total advances balance
Total advances for the five largest advances58,816,50136%

5. Other account receivable(1) Other accounts receivable disclosed by category:

Unit: RMB

CategoriesClosing balanceOpenning balance
Book balanceBad debt provisionBook valueBook balanceBad debt provisionBook value
AmountProportion %AmountProportion %AmountProportion %AmountProportion %
Other accounts receivable withdrawn bad debt provision according to credit risks characteristics34,326,598100%767,5082%33,559,09033,903,217100%674,0682%33,229,149
Total34,326,598100%767,5082%33,559,09033,903,217100%674,0682%33,229,149

Statement on categories of other receivable accounts:

Other accounts receivable with large amount and were provided bad debt provisions individually at end of period.

□ Applicable √ Non-applicable

Other accounts receivable in the portfolio on which bad debt provisions were provided on age analyze basis

□ Applicable √ Non-applicable

Other accounts receivable in the portfolio on which bad debt provisions were provided on percentage basis

√ Applicable □ Non-applicable

Unit: RMB

Name of portfolioClosing balance
Other receivable accountsBad debt provisionproportion%
portfolio 134,326,598767,5082%
Total34,326,598767,5082%

Explanation for determining the basis of the portfolio:

Other accounts receivable in the portfolio on which bad debt provisions were provided on other basis

□ Applicable √ Non-applicable

(2) Accounts receivable withdraw, reversed or collected during the reporting period

The withdrawal amount of the bad debt provision during the report period was of RMB127,208. The amount of the reversed orcollected part during the report period was of RMB 33,768.

(3) Other accounts receivable classified by the nature of accounts

Unit: RMB

NatureClosing balanceOpening balance
Refundable deposits6,953,8206,121,403
Payments made on behalf of other parties23,225,81125,019,422
Petty cash1,389,488959,785
Export tax rebates receivable805,438755,372
Others1,952,0411,047,235
Total34,326,59833,903,217

(4) Top 5 of the closing balance of the other accounts receivable collated according to the arrears party

Unit: RMB

Name of the companies IndustrialNatureClosing balanceAgesProportion of the total year end balance of the accounts receivable (%)Closing balance of bad debt provision
Government agencyIndependent third11,067,7541 to 3 years32%221,355
Aparty
Company BIndependent third party4,268,347W Within 1 year12%85,367
Company CIndependent third party3,183,029Within 1 year9%63,661
Company DIndependent third party1,900,000Within 1 year6%38,000
Government agency EIndependent third party1,196,150Within 1 year3%23,923
Total--21,615,280--62%432,306

6. Inventories(1) Categories of inventory

Unit: RMB

ItemsClosing balanceOpening balance
Book balanceImpairment provisionBook valueBook balanceImpairment provisionBook value
Raw materials254,363,3511,480,641252,882,710166,639,2542,025,446164,613,808
Product in process20,325,74020,325,74018,893,65118,893,651
Products in stock330,050,8773,147,241326,903,636274,559,8896,347,741268,212,148
Material in circulation30,481,69030,481,69026,061,31826,061,318
Total635,221,6584,627,882630,593,776486,154,1128,373,187477,780,925

(2) Inventory impairment provision

Unit: RMB

CategoriesOpening balanceIncreased this termDecreased this termClosing balance
WithdrawalOtherReverse or write-offOther
Raw materials2,025,446544,8051,480,641
Products in stock6,347,7413,200,5003,147,241
Total8,373,1873,745,3054,627,882

Details of inventory impairment provision as following:

Basis for provision for decline in the value of inventoriesReasons of reversal of the decline in the value of inventories in the period
Finished goodsThe amount of carrying amount less net realisable value due to decline in price of productsSold
Raw materialsThe amount of book value less net realisable value due to sluggish or damaged raw materialsUsed

7. Other current assets

Unit: RMB

ItemClosing balanceOpening balance
VAT to be offset186,548,195150,317,894
Asstes held for sale40,049,16340,049,163
Enterprise income tax prepaid1,590,9191,325,723
VAT input to be recognised21,181,0428,212,797
Total249,369,319199,905,577

8. Fixed assets(1) Particulars of fixed assets

Unit: RMB

ItemsBuildingsMachinery and equipmentMotor vehicles and othersTotal
I. Original book value:
1. Opening balance3,911,336,52711,699,296,248201,923,06715,812,555,842
2. Increased amount of the period
(1) Acquisition1,007,8507,963,2892,988,34211,959,481
(2) Transfers from construction in progress70,349,000851,590,7711,185,606923,125,377
(3) Increase from enterprise combination
(4) Others731,0401,858,203472,7733,062,016
3. Decreased amount of the period
(1)Disposal or retirement495,3702,576,0583,071,428
(2) Others3,695,395282,254,513285,949,908
4. Closing balance3,979,729,02212,277,958,628203,993,73016,461,681,380
II. Accumulative depreciation and accumulative amortization
1. Opening balance629,946,2373,287,606,208172,265,0204,089,817,465
2. Increased amount of the period
(1) Withdrawal61,506,196408,580,68511,232,619481,319,500
3. Decreased amount of the period
(1)Disposal or retirement378,0032,461,5132,839,516
(2) Transferred to construction in progress1,895,250138,978,164140,873,414
4. Closing balance689,557,1833,556,830,726181,036,1264,427,424,035
III. Depreciation reserves
1. Opening balance264,765,386264,765,386
2. Increased amount of the period
(1) Withdrawal
3. Decreased amount of the period
(1)Disposal or retirement
(2) Others4,010,1764,010,176
4. Closing balance260,755,210260,755,210
IV. Book value
1. Closing book value3,290,171,8398,460,372,69222,957,60411,773,502,135
2. Opening book value3,281,390,2908,146,924,65429,658,04711,457,972,991

(2) Fixed asset not licensed yet

Unit: RMB

ItemsBook valueReason for not granted
Buildings910,163,588Have submitted the required documents and are in the process of application, or the related land use right certificate pending

During January to June 2017, the depreciation amount provided for fixed assets was RMB 481,319,500 (January to June 2016: RMB421,993,622), and the amount of depreciation expenses charged to cost of sales, selling and distribution expenses, general andadministrative expenses and construction in progress was RMB 448,195,663, RMB 482,108, RMB 31,885,617, and RMB 756,112(January to June 2016: RMB 385,642,218, RMB 506,576, RMB 26,989,222, RMB 8,855,606), respectively.During January to June 2017, the cost of fixed assets transferred from construction in progress amounted to RMB 923,125,377(January to June 2016: RMB 901,652,337).

9. Construction in process(1)Particulars of construction in process

Unit: RMB

ItemClosing balanceOpening balance
Book balanceImpairment provisionBook valueBook balanceImpairment provisionBook value
Yichang 1GW silicon slice project346,209,311346,209,31195,011,02795,011,027
Yichang CSG Display panel display project305,291,97618,170,650287,121,326274,342,57114,160,474260,182,097
Xianning CSG Photoelectric Glass project221,147,847221,147,84741,267,87641,267,876
Hebei float 600T tech-innovation project120,324,473120,324,473
Zhanjiang PV PV power station project53,766,94653,766,9468,855,5608,855,560
Wujiang float glass project70,357,07219,876,46050,480,61270,178,98619,876,46050,302,526
Dongguan Solar Glass Phase I and II improvement project78,970,99533,075,11645,895,87978,970,99533,075,11645,895,879
Sichuan energy-saving project Phase III10,493,10710,493,10713,005,92813,005,928
Dongguan PV 250MW module capacity expansion project10,141,90110,141,901
Dongguan PV 100MV cell production capacity expansion project8,343,2638,343,263
Yichang 700MW silicon slice expansion project2,018,2552,018,2551,775,6411,775,641
Wujiang Photovoltaic Packaging Materials Project1,693,8091,693,8091,583,5531,583,553
Xianning energy-saving glass project1,354,5081,354,5081,083,4301,083,430
Dongguan PV Tech1,146,6721,146,6728,224,0728,224,072
200MW PV-tech Battery Expansion project
Yichang 5000T electronic-grade polysilicon project171,211,288171,211,288
Chengdu float 550T line tech-renovation102,304,740102,304,740
Hebei float 900T tech-innovation project388,627,081388,627,081
Heyuan PV tech 11MV distributed generation project85,126,44685,126,446
others99,287,46299,287,46287,639,23387,639,233
Total1,330,547,59771,122,2261,259,425,3711,429,208,42767,112,0501,362,096,377

(2) Movement of significant project

Unit: RMB

ProjectsBudgetOpening balanceIncreased this termTransferred into fixed assetsOther decreasesClosing balanceInvestment on budget (%)ProgressAccumulate of interest capitalizedIncluding: interest capitalized this termCapitalizing rate of interest this period %Fund recourse
Yichang 1GW silicon slice project1,073,209,60095,011,027251,392,592194,308346,209,31148.00%65.00%3,371,9092,825,6844.41%Internal fund and bank loan
Yichang CSG Display panel display project1,970,000,000274,342,57154,407,82723,194,679263,743305,291,97655.00%65.00%2,691,8861,694,2434.11%Internal fund and bank loan
Xianning CSG Photoelectric Glass project510,000,00041,267,876180,424,957544,986221,147,84754.00%70.00%3,030,9563,030,9564.75%Internal fund and bank loan
Hebei float 600T tech-innovation project181,250,000120,324,473120,324,4732.00%2.00%Internal fund and bank loan
Zhanjiang PV PV power station project130,000,0008,855,56044,911,38653,766,94640.00%45.00%918,139139,7624.57%Internal fund and bank loan
Wujiang float glass project919,891,00070,178,986431,588253,50270,357,072100.00%100.00%20,120,444Internal fund and bank loan
Dongguan Solar Glass Phase I and II improvement396,410,00078,970,99578,970,99580.00%80.00%Internal fund
project
Sichuan energy-saving project Phase III222,817,51713,005,9282,512,82110,493,10799.00%99.00%Internal fund
Dongguan PV 250MW module capacity expansion project28,000,00010,329,122187,22110,141,90136.00%50.00%45,37445,3744.80%Internal fund and bank loan
Dongguan PV 100MV cell production capacity expansion project15,000,0008,343,2638,343,26356.00%70.00%37,32737,3274.80%Internal fund and bank loan
Yichang 700MW silicon slice expansion project697,000,0008,224,0727,077,4001,146,672100.00%100.00%32,015,800Internal fund and bank loan
Wujiang Photovoltaic Packaging Materials Project1,980,000,0001,775,641242,6142,018,25576.00%100.00%17,594,4544.41%Internal fund and bank loan
Xianning energy-saving glass project565,119,3181,583,553137,08026,8241,693,80995.00%100.00%6,321,397Internal fund and bank loan
Dongguan PV Tech 200MW PV-tech Battery Expansion project295,270,6061,083,430373,57668,59433,9041,354,50899.00%100.00%11,306,278Internal fund and bank loan
Yichang 5000T electronic-grade698,396,700171,211,28846,327,655216,595,546943,39730.00%35.00%7,177,0333,967,4984.41%Internal fund and bank loan
polysilicon project
Chengdu float 550T line tech-renovation200,000,000102,304,74057,219,831159,524,57192.00%100.00%Internal fund
Hebei float 900T tech-innovation project124,000,000388,627,0814,503,619393,130,700100.00%100.00%4,211,8931,057,5934.94%Internal fund and bank loan
Heyuan PV tech 11MV distributed generation project91,610,00085,126,4461,021,58786,141,3451,8344,85494.00%100.00%325,704325,7045.00%Internal fund and bank loan
others1,046,953,40087,639,23346,885,67936,185,70198,339,21167,530,341910,042Internal fund and bank loan
Total11,144,928,1411,429,208,427827,276,849923,125,3772,812,3021,330,547,597----176,698,93514,034,183--

10. Intangible assets(1) Particulars of intangible assets

Unit: RMB

ItemLand use rightsPatentsMineral rightsOthersTotal
I. Original book value:
1. Opening balance1,026,603,700199,922,9864,456,53623,548,0471,254,531,269
2. Increased amount of the period
(1) Acquisition2,856,02013,5392,869,559
(2) Internal R &D6,097,4396,097,439
(3) Increase from enterprise combination
3. Decreased amount of the period
(1)Disposal
4. Closing balance1,026,603,700208,876,4454,456,53623,561,5861,263,498,267
II. Total accrued amortization
1. Opening balance128,007,67757,225,7433,306,08320,322,309208,861,812
2. Increased amount of the period
(1) Withdrawal9,813,2017,601,215200,3212,141,79119,756,528
3. Decreased amount of the period
(1)Disposal
4. Closing balance137,820,87864,826,9583,506,40422,464,100228,618,340
III. Impairment provision
1. Opening balance13,201,3479,13313,210,480
2. Increased amount of the period
(1) Withdrawal
3. Decreased amount of the period
(1)Disposal
4. Closing balance13,201,3479,13313,210,480
IV. Book value
1. Closing book value888,782,822130,848,140950,1321,088,3531,021,669,447
2. Opening book value898,596,023129,495,8961,150,4533,216,6051,032,458,977

At the end of the period, the intangible assets arising from internal research and development accounted for 10.20% of total ofintangible assets.

(2) Land use right not licensed yet

Unit: RMB

ItemBook valueReason for not granted
Land5,595,776in the process

During Jan.-Jun. 2017, the amortisation of intangible assets amounted to RMB 19,756,528 (Jan.-Jun. 2016: RMB 16,315,423).

As at 30 June 2017, ownership certificates of land use right (“Land ownership Certificates”) for certain land use rights of the Group

with carrying amounts of approximately RMB 5,595,776 (cost: RMB 6,586,712) had not yet been obtained by the Group (as at 31

December 2016, carrying amount: RMB 5,718,191, cost: RMB 6,586,712). The Company’s management is of the view that there isno legal restriction for the Group to apply for and obtain the Land Ownership Certificates and has no adverse effect on the Group’s

business operation.

11. Development expenditure

Unit: RMB

ItemOpening balanceThe increased amount in the periodThe decrease amount in the periodClosing balance
Recognised as intangible assetsTransfer in gains and losses
Development expenditure66,927,71415,642,6336,097,439423,43776,049,471
Total66,927,71415,642,6336,097,439423,43776,049,471

During Jan.-Jun. 2017, the total amount of research and development expenditures of the Group was RMB 166,809,377 (Jan.-Jun.2016: RMB 155,478,325), including RMB 151,590,181 (Jan.-Jun. 2016: RMB 127,759,895) recorded in income statement for currentperiod and RMB 6,097,439 were recognized as intangible assets (Jan.-Jun. 2016: nil). As at 30 June 2017, the intangible assets arisingfrom internal research and development accounted for 10.2% of the total of book value of intangible assets (31 December 2016:

9.51%).

12. Goodwill(1)Book value of goodwill

Unit: RMB

Name of the companies or goodwill itemOpening balanceIncreased this termDecreased this termClosing balance
Tianjing CSG Energy-saving Company3,039,9463,039,946
Shenzhen Display Company4,857,4064,857,406
Xianning Fengwei Company389,494,804389,494,804
Total397,392,156397,392,156

The goodwill allocated to the asset groups and groups of asset groups from Tianjing CSG Energy-saving was summarised by operatingsegments as Architectural Glass segment. The goodwill allocated to the asset groups and groups of asset groups from Shenzhen CSGDisplayand Xianning CSG Photoelectric are summarised by operating segments as Electronic Glass and Display segment.

The Company's management considered that the goodwill was not impaired as at 30 June 2017.

The recoverable amount of asset groups is determinded by net present value of estimated future cash flows which is determinedaccording to the five-year budget approved by management. The cashflow exceed five years is forcasted by using growth rates not

exceeding similar long-term average growth rates of each asset group’s industry. The discount rates used are the pre-tax interest rates

that are able to reflect the risks specific to the related asset groups.

13. Long-term expenses to be amortized

Unit: RMB

ItemOpening balanceIncreased this termAmortized this termClosing balance
Expenses to be amortized975,6609,496,897779,4559,693,102
Total975,6609,496,897779,4559,693,102

14. Deferred income tax asset/deferred income tax liabilities(1) Deferred income tax assets had not been off-set

Unit: RMB

ItemClosing balanceOpening balance
Deductible temporary differenceDeferred income tax assetsDeductible temporary differenceDeferred income tax assets?
Provision for asset impairments400,092,30060,026,145410,272,18261,899,046
Deductible loss137,896,78022,522,859164,790,39228,883,903
Government grants130,489,61320,809,503129,722,99320,654,199
Accrued expenses66,241,07311,953,52881,018,06912,352,386
Depreciation of fixed26,759,2687,741,13828,241,4616,320,146
assets
Total761,479,034123,053,173814,045,097130,109,680

(2) Deferred income tax liabilities had not been off-set

Unit: RMB

ItemClosing balanceOpening balance
Deductible temporary differenceDeferred income tax liabilitiesDeductible temporary differenceDeferred income tax liabilities
Depreciation of fixed assets347,335,27662,520,184396,118,58363,406,963
Total347,335,27662,520,184396,118,58363,406,963

(3) The net balances of deferred tax assets or liabilities

Unit: RMB

ItemOff-set amount of deferred income tax assets and liabilities at the period-endClosing balance of deferred income tax assetsor liabilities after off-setOff-set amount of deferred income tax assets and liabilities at the period-beginningOpening balance of deferred income tax assetsor liabilities after off-set
Deferred tax assets38,355,96384,697,21033,657,82696,451,854
Deferred tax liabilities38,355,96324,164,22133,657,82629,749,137

(4) Details of unrecognised deferred income tax assets

Unit: RMB

ItemClosing balanceOpening balance
Deductible losses410,872,906342,455,782
Total410,872,906342,455,782

(5) Deductible losses of unrecognized deferred income tax assets will due the following years

Unit: RMB

YearClosing balanceOpening balanceNote
2018年54,100,00054,100,000
2019年82,300,00082,300,000
2020年94,430,19794,430,197
2021年111,625,585111,625,585
2022年68,417,124
Total410,872,906342,455,782--

The deductible loss of the unrecognized deferred income tax assets is mainly attributable to the Company and some of the subsidiarieswhich have been closed. The management of the Company can not expect the Company and the subsidiaries to generate sufficienttaxable income which can be used to deduct such deductible losses in the future. Therefore, deferred income tax assets are notrecognized.

15. Other non-current assets

Unit: RMB

ItemClosing balanceOpening balance
Prepayment for equipment and software upgrading expenses74,836,84069,945,550
VAT input to be offset10,718,843
Prepayment for lease of land use rights6,510,0006,510,000
Total81,346,84087,174,393

16. Short-term loans(1) Categories of short-term loans

Unit: RMB

ItemClosing balanceOpening balance
Guaranteed loan709,694,000367,618,369
Unsecured loan1,690,000,0001,650,251,293
Ultra-short-term finance bonds (iii)2,000,000,000
Total2,399,694,0004,017,869,662

(i) On 17 May 2016, the Company issued the Phase II ultra-short-term financial bonds of RMB900,000,000 for 2016, with the maturitydata of 13 February 2017 and annual rate of 4.18%.As at the reporting date, such short-term bonds had been repaid.

On 2 August 2016, the Company issued the Phase III ultra-short-term financial bonds of RMB600,000,000 for 2016, with the maturitydata of 1 May 2017 and annual rate of 3.67%.

On 1 September 2016, the Company issued the Phase IV ultra-short-term financial bonds of RMB500,000,000 for 2016, with thematurity data of 2 June 2017 and annual rate of 3.50%.

(ii) As at 30 June 2017, the Company provided its subsidiaries with guarantee for the short-term borrowings of RMB 709,694,000 (31December 2016: RMB 367,618,369), and the Company had no counter guarantee from minority shareholders of subsidiaries (31December 2016: Nil).

(iii) As at 30 June 2017, the interest of short-term borrowings varied from 2.70% to 5.00% (31 December 2016: 2.70% to 4.79%).

17. Notes payable

Unit: RMB

CategoryClosing balanceOpening balance
Bank acceptance notes114,500,00020,000,000
Total114,500,00020,000,000

18. Accounts payable(1)Particulars of accounts payable

Unit: RMB

ItemClosing balanceOpening balance
Account payable for materials833,168,302747,769,987
Account payable for equipments281,497,857233,779,329
Account payable for constructions171,181,012100,246,462
Account payable for freight57,741,84640,916,380
Account payable for water and electricity33,639,90044,602,055
Others5,271,5612,555,157
Total1,382,500,4781,169,869,370

(2) Significant accounts payable due for over one year

Unit: RMB

ItemClosing balanceUnpaid reason
Account payable for construction and equipments.98,986,756As the construction work had not passed the final acceptance test yet, the balance was not yet settled.
Total98,986,756--

As at 30 June 2017, the amount of accounts payable over 1 year was approximately RMB 98,986,756 (31 December 2016: RMB140,385,720), which mainly comprised payables for construction and equipment. As the construction work had not passed the finalacceptance test yet, the balance was not yet settled.

19. Advances from customers(1) List of advance from customers

Unit: RMB

ItemClosing balanceOpening balance
Advances from customers201,549,137142,330,979
Total201,549,137142,330,979

20. Employee benefits payable(1) List of Employee benefits payable

Unit: RMB

ItemsOpening balanceIncreased this termDecreased this termClosing balance
I. Short-term employee benefits193,166,719598,752,219618,819,592173,099,346
II. Welfare after departure- defined contribution plans205,52053,146,28353,264,82886,975
Total193,372,239651,898,502672,084,420173,186,321

(2) List of short-term employee benefits

Unit: RMB

ItemsOpening balanceIncreased this termDecreased this termClosing balance
1. Wages and salaries, bonuses, allowances and subsidies159,601,219506,010,114548,380,471117,230,862
2. Social security contributions50,33123,386,45923,369,78167,009
Including: Medical insurance31,34020,305,29220,282,05354,579
Work injury insurance12,6772,271,5112,275,8038,385
Maternity insurance6,314809,656811,9254,045
3. Housing funds2,603,79126,571,50626,290,0582,885,239
4.Labour union funds and employee education funds15,571,3787,084,1408,025,38514,630,133
5.Management bonus for performance15,340,00035,700,00012,753,89738,286,103
Total193,166,719598,752,219618,819,592173,099,346

(3) List of defined contribution plans payable

Unit: RMB

ItemsOpening balanceIncreased this termDecreased this termClosing balance
1. Basic pensions192,78051,126,02551,239,95478,851
2. Unemployment insurance12,7402,020,2582,024,8748,124
Total205,52053,146,28353,264,82886,975

According to the decision of the fifth meeting of the seventh session of the board of directors held on 31 March 2015, the Boardapproved that it will appraise the management team based on quarterly net assets income rate and reward the management team bytaking quarterly total net profit after tax as the base. The Group withheld management performance award of RMB 35,700,000(Jan.-Jun. 2016: 43,750,000).

21. Tax payable

Unit: RMB

ItemClosing balanceOpening balance
Value-added-tax payable37,988,90941,919,187
Corporate income tax payable31,122,62346,726,185
Individual income tax payable3,956,8843,755,374
Urban maintenance and construction tax2,859,3363,482,715
Property tax payable4,223,10310,998,756
Education surcharge payable2,334,7213,351,165
Others5,475,6955,359,234
Total87,961,271115,592,616

22. Interest payable

Unit: RMB

ItemClosing balanceOpening balance
Interest payable for long-term borrowings716,3634,800,133
Interest for corporate bonds37,309,99510,660,000
Interest payable for short-term borrowings2,897,7162,289,987
Interest for ultra-short-term financing bonds32,854,763
Interest payable for medium-term notes57,260,62227,621,021
Total98,184,69678,225,904

23. Dividends payable

Unit: RMB

ItemClosing balanceOpening balance
Common stock dividend207,533,556
Total207,533,556

24. Other account payable(1) List of other account payable by nature

Unit: RMB

ItemClosing balanceOpening balance
Interest-free borrowings626,342,837
Guarantee deposits received from construction contractors64,868,54669,156,801
Accrued cost of sales40,511,66347,671,047
Temporary collection of payment for land transfer39,350,24528,098,000
Industrial production scheduling funds31,000,000
Payable for contracted labour costs16,551,62317,467,346
Temporary receipts13,218,77614,022,924
Deposit for disabled4,036,3513,509,947
Others8,943,8468,395,385
Total844,823,887188,321,450

24. Other account payable(1) List of other account payable by nature

Unit: RMB

ItemClosing balanceOpening balance
Guarantee deposits received from construction contractors64,868,54669,156,801
Accrued cost of sales40,511,66347,671,047
Temporary collection of payment for land transfer39,350,24528,098,000
Interest-free borrowings681,000,000
Payable for contracted labour costs16,551,62317,467,346
Temporary receipts13,218,77614,022,924
Deposit for disabled4,036,3513,509,947
Others8,943,8468,395,385
Total868,481,050188,321,450

25. Non-current liabilities due within one year

Unit: RMB

ItemClosing balanceOpening balance
Long-term borrowing due within 1year29,340,000
Bonds payable due within 1year1,000,000,0001,000,000,000
Long-term accounts payable within one year101,203,702
Total1,101,203,7021,029,340,000

(i)According to the China Securities Regulatory Commission license [2010] No.1369 published by the China Securities RegulatoryCommission, the Company issued the corporate bonds on 20 October 2010, with a par value of RMB2 billion. The Corporate Bonds

include RMB1 billion that will mature in 5 years (“5 year Bonds”) and another RMB1 billion that will mature in 7 years (“7 yearBonds”). The 7 year Bonds holders have a put option over the Company to repurchase at the end of the fifth year. The Corporate

Bonds carries at fixed interest rate of 5.33% per year, with interest paid annually. The bonds are recognised at the actual amount ofdiscount bonds, with the actual annual rate of 5.59%. 5-year bonds have been repaid on 19 October 2015, no 7-year bonds shall beresold by investors, and are matured on 19 October 2017.(ii)As of June 30, 2017, the Company signed a sell and leaseback agreement with a third-party finance leasing company. As a resultof the Company's failure to transfer the fixed asset-related risks, it constituted a mortgage loan. In which: the amount required to berepaid within one year was shown as non-current liabilities due within one year - long term payable due within one year".

26. Other current liability

Unit: RMB

ItemsClosing balanceOpening balance
Others300,000300,000
Total300,000300,000

27. Long-term borrowings(1) Categories of long-term borrowings

Unit: RMB

ItemsClosing balanceOpening balance
Guaranteed loan244,000,00058,660,000
Unsecured loan180,000,000180,000,000
Medium-term notes1,200,000,0001,200,000,000
Total1,624,000,0001,438,660,000

Approved by file No. [2015] MTN225 of Inter Bank Market Trading Association, the Company is entitled to issue medium-term notes

with the limit of RMB 1,200,000,000, which expires on 28 May 2017.

The Company issued medium-term notes of RMB 1,200,000,000 on 14 July 2015 for the first time in 2015. The notes above matured

on 14 July 2020, with an annual interest rate of 4.94%.

As at 30 June 2017, the interest of long term borrowings varied from 4.51% to 4.94% (31 December 2016: 4.51% to 4.94%).

28. Long term payables(1) Long-term payables by nature of payment

Unit: RMB

ItemsClosing balanceOpening balance
Interest-free loan649,823,5180
Mortgage loan189,048,1520
Total838,871,6700

On 22 November 2016, the Company received a letter from its shareholder, Jushenghua, stating that to support the Group’s steady

operation and development, Jushenghua, as the shareholder of the Company, would like to offer interest-free borrowings with the totalamount of RMB 2,000,000,000 to the Company or through related parties designated by it. As of the date of this report, the shareholderhas provided RMB 700,000,000 of interest-free loans (amortized cost of RMB 650,000,000).

29. Deferred revenue

Unit: RMB

ItemsOpening balanceIncreased this termDecreased this termClosing balancereason
Government grants422,993,25412,800,00014,912,953420,880,301
Total422,993,25412,800,00014,912,953420,880,301--

Government grants are analysed below:

Unit: RMB

Item in debtOpening balanceIncrease in current periodIncluded in non-business incomeOther changesClosing balanceRelated to assets or income
Tianjin CSG Golden Sun Project (i)57,092,0111,687,44655,404,565Related to assets
Dongguan CSG Golden Sun Project (ii)46,079,2501,375,50044,703,750Related to assets
Hebei CSG Golden Sun Project (iii)46,750,0001,375,00045,375,000Related to assets
Xianning CSG Golden Sun Project (iv)51,013,4171,515,25049,498,167Related to assets
Infrastructure compensation for Wujiang CSG Glass43,670,4352,020,76841,649,667Related to assets
Co., Ltd (v)
Qingyuan Energy-saving project (vi)23,259,1671,235,00122,024,166Related to assets
Yichang Silicon products project (vii)24,609,3751,406,25023,203,125Related to assets
Yichang CSG silicon slice auxiliary project (viii)13,890,609634,32313,256,286Related to assets
Sichuan energy-saving glass project (ix)12,129,480827,01011,302,470Related to assets
Group coating film experimental project (x)9,035,040754,3808,280,660Related to assets
Yichang expert silicon project (xi)3,906,547132,8763,773,671Related to assets
Yichang semiconductor silicon project (xi)3,666,667133,3343,533,333Related to assets
Shenzhen CSG Display project (xiii)53,371,0821,267,23952,103,843Related to assets
Xianning photoelectric infrastructure construction fund (xiv)7,800,0007,800,000Related to assets
Others34,520,1745,000,000462,58885,98838,971,598Related to assets and income
Total422,993,25412,800,00014,826,96585,988420,880,301--

(i)The allowance was granted by Tianjin Municipal Government. The allowance was used for establishing PV power station byTianjin CSG Architectural Glass Co., Ltd. The facilities belonged to Tianjin CSG upon completion. The allowance will be credited toincome statement in 20 years, the useful life of the PV power station.

(ii)The allowance was granted by Dongguan Municipal Government. The allowance was used for establishing PV power station byDongguan CSG Architectural Glass Co., Ltd. The facilities belonged to Dongguan CSG upon completion. The allowance will becredited to income statement in 20 years, the useful life of the PV power station.

(iii)The allowance was granted by Langfang Municipal Government. The allowance was used for establishing PV power station byHebei CSG Glass Co., Ltd. ("Hebei CSG"). When the facilities were set up, they belonged to Hebei CSG. The allowance will becredited to income statement in 20 years, the useful life of the PV power station.

(iv)The allowance was granted by Xianning Municipal Government. The allowance was used for establishing PV power station byXianning CSG Glass Co Ltd. The facilities belonged to Xianning CSG upon completion. The allowance will be credited to incomestatement in 20 years, the useful life of the PV power station.

(v)The allowance was infrastructure compensation granted by Wujiang municipal government, and will be credited to incomestatement in 15 years, the shortest operating period as committed by the Group.

(vi)The allowance was a pilot project for strategic emerging industry clusters development, which was used to establish highperformance ultra-thin electronic glass production lines by Qingyuan CSG. The allowance will be credited to income statement in 10years, the useful life of the production line.

(vii)The balance represented amounts granted to Yi Chang CSG Silicon Materials Co., Ltd. by Yichang City Dongshan DevelopmentCorporation under the provisions of the investment contract signed between the Group and the Municipal Government of Yi Chang.The proceeds were designed for the construction of electricity transformer and the pipelines. Yichang Silicon is entitled to theownership of the facilities, which will be amortised by 15 years according to the useful life of the converting station.

(viii)It represented the government supporting fund obtained by Yichang Silicon from the acquiring of the assets and liabilities ofCrucible project of Yichang Hejing Photoelectric Ceramic Co., Ltd. The proceeds would be amortised and credited to incomestatement by 15 years after related assets were put into use.

(ix)It represented the funds granted by Chengdu local government for energy glass project. It will be amortised and credited toincome statement in 15 years, in accordance with the minimum operating period committed by the Group.

(x)The allowance was granted by Shenzhen City Development and Reform Commission for the development of Group Coating Filmexperimental project. The grant will be amortised and credited to income statement by 20 years in the estimated useful life of therelevant fixed assets.

(xi) It represented the funds granted by Hubei local government for inport discount complement and international corporation specialsubsidy. The grant will be amortised and credited to income statement by 12 and 14 years

(xii) It represented the special subsidy of Yichang National Regional Strategic Emerging Industry Development Pilot Project II,

which is used to complement Yichang CSG Silicon “Hubei semiconductor silicon preparative technique project laboratory”. The

grant will be amortised and credited to income statement by 15 years

(xiii)It represented the business combinations involving enterprises not under common control and the increase in deferred incomearising from incorporating the deferred income of Shenzhen CSG Display into the consolidated scope.

(xiv) It represented the funds granted by Department of Hubei Xianning High-tech Industrial Park Administrative Committee forinfrastructure construction which will be amortised by 10 years according to the useful life of the production line.

30. Share Capital

Unit: RMB

Opening balanceChanged in the report period (+,-)Closing balance
Issuing of new sharesBonus sharesTransferred from reservesOthersSub-total
Total of capital2,075,335,5602,075,335,560

The par value of the RMB-denominated ordinary shares is RMB1, and that of domestically listed foreign shares is HKD1.

31. Capital surplus

Unit: RMB

sharesItems

ItemsOpening balanceIncreased this termDecreased this termClosing balance
Capital premium1,345,264,6701,345,264,670
Other capital surplus-84,562,47389,251,7804,689,307
Total1,260,702,19789,251,7801,349,953,977

Other capital reserve increased was mainly attributable to the interest-free loans provided by the shareholder, Shenzhen JushenghuaCo., Ltd. to the Company. Capital reserve increased of RMB 89,141,412 when interest of the loans was calculated on equitytransactions.

32. Other comprehensive income

Unit: RMB

ItemOpening balanceOccuring in current periodClosing balance
Amount incurred ??before income taxLess: Amount transferred into profit and loss in the current period that recognized into other comprehensive income in prior periodLess: income tax expenseAfter-tax attribute to the parent companyAfter-tax attribute to minority shareholder
II. Other comprehensive income reclassified into profit and loss in future4,653,971-1,076,264-1,076,2643,577,707
Differences on translation of foreign currency financial statements2,103,971-1,076,264-1,076,2641,027,707
Finance incentives for energy and technical transformation2,550,0002,550,000
Total of other comprehensive income4,653,971-1,076,264-1,076,2643,577,707

33. Special reserves

Unit: RMB

ItemsOpening balanceIncreased this termDecreased this termClosing balance
Safety production cost5,843,4733,922,8696,532,6823,233,660
Total5,843,4733,922,8696,532,6823,233,660

34. Surplus reserves

Unit: RMB

ItemsBeginning of termIncreased this termDecreased this termEnd of term
Statutory surplus reserve760,997,662760,997,662
Discretionary surplus reserve127,852,568127,852,568
Total888,850,230888,850,230

35. Retained earnings

Unit: RMB

ItemsThe current periodThe same period of last year
Retained earnings at the end of last year before adjustment3,576,949,5733,637,206,565
Retained earnings at the beginning of this year after adjustment3,576,949,5733,431,556,565
Add: net profits belonging to equity holders of the Company392,992,163466,883,254
Less: Dividends payable207,533,556622,600,668
Retained earnings in the end3,762,408,1803,275,839,151

36. Revenue and cost

Unit: RMB

ItemOccurred in current termOccurred in previous term
RevenueCostRevenueCost
Revenue from main operations4,914,535,8743,730,914,8514,184,209,3833,052,534,128
Revenue from other operations29,801,9876,599,61143,956,25924,284,375
Total4,944,337,8613,737,514,4624,228,165,6423,076,818,503

37. Tax and surcharge

Unit: RMB

ItemOccurred in current termOccurred in previous term
City maintenance and construction tax15,364,49412,602,639
Educational surcharge11,927,21110,367,308
Housing property tax14,797,1025,421,344
Land use rights11,043,2233,273,686
Business tax2,411,6861,073,483
Others6,202,059747,323
Total61,745,77533,485,783

38. Selling Expenses

Unit: RMB

ItemsOccurred in current termOccurred in previous term
Freight expenses76,391,48159,381,190
Employee benefits49,496,70343,288,837
Entertainment expenses5,674,8685,179,120
Travelling expenses5,113,5004,811,124
Vehicle use fee3,531,9013,414,236
Rental expenses3,029,5512,588,324
General office expenses1,536,2822,001,995
Depreciation expenses482,108506,576
Others11,088,3377,393,429
Total156,344,731128,564,831

39. Administrative Expenses

Unit: RMB

ItemsOccurred in current termOccurred in previous term
Research and development expenses151,590,181127,759,895
Employee benefits135,166,127113,606,280
Depreciation expenses31,885,61726,989,222
Amortisation of intangible assets19,756,52816,315,423
General office expenses12,640,56910,148,252
Taxation Expenses17,604,458
Labour unior funds7,083,2124,948,671
Entertainment expenses4,800,7513,889,174
Travelling expenses4,486,6434,446,174
Water and electricity expense4,529,6265,086,006
Canteen costs4,404,2533,667,235
Vehicle use fee2,966,9872,527,549
Rental expenses2,457,1321,403,376
Others20,786,71410,444,680
Total402,554,340348,836,395

40. Finance Expenses

Unit: RMB

ItemsOccurred in current termOccurred in previous term
Loan interest157,228,769134,008,214
Less: Capitalised interest14,034,1836,183,391
Interest expenses143,194,586127,824,823
Less: Interest income4,186,7123,301,921
Exchange losses2,109,8904,217,530
Others2,256,2634,612,961
Total143,374,027133,353,393

41. Asset impairment loss

Unit: RMB

ItemsOccurred in current termOccurred in previous term
I. Provision for bad debts1,108,695-878,514
2. Provision for inventory depreciation-46,858
Total1,108,695-925,372

42. Investment income

Unit: RMB

ItemsOccurred in current termOccurred in previous term
Long-term equity investment accounted by equity method-14,264,359
Total-14,264,359

43. Other gains

Unit: RMB

Source of other gainsOccurred in current termOccurred in previous term
Industry supporting fund12,600,000.00N/A
Government awards fund4,323,546.00N/A
Subsidies for research and development6,479,492.00N/A
Energy saving subsidy128,116.00N/A
Others143,080.00N/A
Total23,674,234.00N/A

44. Non-operating income

Unit: RMB

ItemsOccurred in current termOccurred in previous termAmount of non-recurring gain and loss included in the report period
Total of gains from disposal of non-current assets57,734248,64257,734
Incl.:Gain on disposal of fixed assets57,734248,64257,734
Government grants14,826,96547,606,02914,826,965
Compensation income146,436462,552146,436
Funds unpayable520171,592520
Others997,9411,549,549997,941
Total16,029,59650,038,36416,029,596

45. Non-operating expenses

Unit: RMB

ItemsOccurred in current termOccurred in previous termAmount of non-recurring gain and loss included in the report period
Total of loss from disposal of non-current assets129,49019,984129,490
Incl. Loss from disposal of fixed assets129,49019,984129,490
Donation199,99940,000199,999
Loss on compensations407,332
Others403,103194,312403,103
Total732,592661,628732,592

46. Income tax expenses(1) List of income tax expenses

Unit: RMB

ItemsOccurred in current termOccurred in previous term
Current income tax74,283,29357,280,962
Deferred income tax6,169,72820,562,202
Total80,453,02177,843,164

(2) Adjustment process of accounting profit and income tax expense

Unit: RMB

ItemsOccurred in current term
Total profit480,667,069
Current income tax expense accounted by tax and relevant regulations66,102,580
Costs, expenses and losses not deductible for tax purposes723,999
Influence of deductible temporary difference or deductible losses of unrecognized deferred income tax assets17,012,930
Final settlement of the previous year's income tax adjustment-3,386,488
Income tax expenses80,453,021

47. Other comprehensive income

The details can be found in notes to the financial statements.

48. Items of the cash flow statement(1)Cash received relating to other operating activities

Unit: RMB

ItemsOccurred in current termOccurred in previous term
Government grant23,674,23422,515,577
Interest income4,186,7123,301,921
Others40,349,75620,291,438
Total68,210,70246,108,936

(2)Cash paid relating to other operating activities

Unit: RMB

ItemsOccurred in current termOccurred in previous term
Transportation expense68,348,98161,146,471
Canteen cost21,140,16919,735,042
Office expenses16,993,63913,568,857
R&D fees26,795,30219,470,201
Travelling expenses12,971,90311,839,397
Entertainment expenses11,650,15610,603,096
Vehicle use fee7,589,4167,147,877
Repairing fees9,445,6356,426,568
Rental expenses4,103,7674,439,417
Insurance expenses6,679,9464,823,957
Financing Commission2,256,2634,612,961
Others63,287,03259,101,076
Total251,262,209222,914,920

(3)Cash received relating to other investing operating activities

Unit: RMB

ItemsOccurred in current termOccurred in previous term
Government grants received relating to assets12,800,0003,600,000
Collection trusted11,239,20011,239,200
Received repayment14,860,684
Total24,039,20029,699,884

(4)Cash paid relating to other investing activities

Unit: RMB

ItemsOccurred in current termOccurred in previous term
Payment for collection trusted15,300,000
Payment for deposit and margin31,475,1826,464,586
Total31,475,18221,764,586

(5)Cashreceivedrelating to other financing activities

Unit: RMB

ItemsOccurred in current termOccurred in previous term
Received interest free loan1,381,000,000
Received mortgage loan278,400,000
Received return money from the original affiliated company Shenzhen CSG Display88,567,811
Collection of income tax of dividends of7,289,494
A-share & B-share
Collection2,490,239
Received deposit and margin4,701,2914,868,673
Total1,666,591,530100,725,978

(6)Cashpaidrelating to other financing activities

Unit: RMB

ItemsOccurred in current termOccurred in previous term
Cash paid for financing lease of the original affiliated company Shenzhen CSG Display109,125,965
Payment of income tax of dividends of A-share & B-share1,701,507
Cash paid for Commission fee1,750,000
Total3,451,507109,125,965

49. Supplement notes of cash flow statement(1) Supplement notes of cash flow statement

Unit: RMB

Supplementary Info.Amount of this termAmount of last term
1. Net profit adjusted to cash flow of business operation----
Net profit400,214,048465,301,322
Add: Provisions for assets impairment1,108,695-925,372
Depreciation of fixed assets, gas and petrol depreciation production goods depreciation480,563,388413,138,016
Amortisation of intangible assets19,756,52816,315,423
Losses on disposal of fixed assets , intangible assets and other long-term assets (“-“ for gains)71,756-228,658
Finance expenses (“-“ for gains)143,194,586127,824,823
Investment loss(“-“ for gains)14,264,359
Decrease in deferred tax assets (“-“ for increase)11,754,64421,032,799
Increase of deferred income tax liability (“-“ for decrease)-5,584,916-470,597
Decrease of inventory (“-“ for increase)-152,812,851-9,920,347
Decrease of operational receivable items (“-“ for increase)-132,167,898-30,401,660
Increase of operational payable items (“-“ for decrease)253,791,47430,790,241
Net cash flow generated by business operation1,019,889,4541,046,720,349
2. Major investment and financing operation not involving with cash----
3. Net change of cash and cash equivalents----
Balance of cash at period end932,050,522404,710,155
Less: Initial balance of cash584,566,990574,744,877
Net increasing of cash and cash equivalents347,483,532-170,034,722

(2) Formation of cash and cash equivalents

Unit: RMB

ItemsClosing balanceOpening balance
I. Cash932,050,522584,566,990
Incl: Cash on hand27,53017,239
Cash at bank without restriction932,022,992584,549,751
others without restriction
III. Balance of cash and cash equivalents at th end of the period932,050,522584,566,990

50. Assets of ownership or use right restricted

Unit: RMB

ItemEnding book valueReason for restriction
Monetary fund2,184,679It’s the Company’s guarantee deposit for the application of opening letter of credit and loan from the bank, which was restricted monetary fund.
Total2,184,679--

51. Foreign currency monetary items(1) Foreign currency monetary items

Unit: RMB

ItemClosing balance of foreign currencyExchange rateClosing balance convert to RMB
Cash at bank and on hand----40,648,532
Incl: USD4,578,1426.774431,014,165
EUR7007.74965,425
HKD10,986,2910.86799,535,002
AUD17,4345.209990,829
JPY51,4210.06053,111
Accounts receivable----118,258,690
Incl: USD16,372,3616.7744110,912,922
EUR946,7857.74967,337,205
HKD9,8660.86798,563
Short-term borrowings65,092,500
Incl: HKD75,000,0000.867965,092,500
Accounts payable98,782,030
Incl: USD11,116,2176.774475,305,700
HKD3060.8679266
EUR1,105,3227.74968,565,803
JPY246,450,5950.060514,910,261

VIII. Changes in the scope of consolidation

1. The new subsidiary included in the consolidation scope in the period was Zhijiang CSG PV New Energy Co.,Ltd. (hereinafter referred to as "Zhijiang PV Company").

IX. Interest in other entities

1. Interest in subsidiary(1) Composition of the Group

Name of subsidiaryMajor business locationPlace of registrationScope of businessShareholding (%)Way of acquicition
DirectIndirect
Chengdu CSG Glass Co., Ltd.Chengdu, the PRCChengdu, the PRCDevelopment, production and sales of specialized glass75%25%Establishment
Sichuan CSG Energy ConservationChengdu, the PRCChengdu, the PRCDevelopment, production and sales of specialized glass and processed glass75%25%Split-off
Tianjin Energy Conservation Glass Co. LtdTianjin, the PRCTianjin, the PRCDevelopment, production and sales of specialized energy-efficient glass75%25%Establishment
Dongguan CSG Architectural Glass Co., Ltd.Dongguan, the PRCDongguan, the PRCGlass deep processing75%25%Establishment
Dongguan CSG Solar Glass Co., Ltd.Dongguan, the PRCDongguan, the PRCProduction and sales of solar glass75%25%Establishment
Dongguan CSG PV-tech Co., Ltd.Dongguan, the PRCDongguan, the PRCProduction and sales of high-tech green cell products and modules100%Establishment
Yichang CSG Polysilicon Co., Ltd.Yichang, the PRCYichang, the PRCProduction and sales of High purity silicon materials75%25%Establishment
Wujiang CSG North-east Architectural Glass Co., Ltd.Wujiang, the PRCWujiang, the PRCGlass deep processing75%25%Establishment
Hebei CSG Glass Co., Ltd.Yongqing, the PRCYongqing, the PRCProduction and sales of specialized glass75%25%Establishment
Wujiang CSG Glass Co., Ltd.Wujiang, the PRCWujiang, the PRCProduction and sales of specialized glass100%Establishment
China Southern Glass (Hong Kong) LimitedHong KongHong KongTrading and investment holding100%Establishment
Hebei Panel Glass Co., Ltd.Yongqing, the PRCYongqing, the PRCProduction and sales of ultra-thin electronic glass100%Establishment
Xianning CSG Glass Co Ltd.Xianning, the PRCXianning, the PRCProduction and sales of specialized glass75%25%Establishment
Xianning CSG Energy Conservation Glass Co Ltd.Xianning, the PRCXianning, the PRCGlass deep processing75%25%Split-off
Qingyuan CSG Energy Saving New Materials Co.,LtdQingyuan, the PRCQingyuan, the PRCProduction and sales of ultra-thin electronic glass100%Establishment
Shenzhen CSG Display Technology Co., Ltd.Shenzhen, the PRCShenzhen, the PRCGlass for display device60.80%Acquisition
Xianning CSG Photoelectric Glass Co., Ltd.Xianning, the PRCXianning, the PRCPhotoelectric glass and high-alumina glass37.50%62.50%Acquisition

(2)The significant non-fully-owned subsidiaries of the Group

Unit: RMB

SubsidiariesShareholding of minority shareholdersTotal profit or loss attributable to minority shareholders for the year ended 30 June 2017Dividends distributed to minority interests for the year ended 30 June 2017Minority interest as at 30 June 2017
Shenzhen CSG Display Technology Co., Ltd.39.20%5,787,351311,685,657

(3) The major financial information of the significant non-fully-owned subsidiaries of the Group

Unit: RMB

Name of SubsidiaryClosing balanceOpening balance
Current assetsNon-current assetsTotal assetsCurrent liabilitiesNon-current liabilitiesTotal liabilitiesCurrent assetsNon-current assetsTotal assetsCurrent liabilitiesNon-current liabilitiesTotal liabilities
Shenzhen CSG Display Technology Co., Ltd.262,179,1001,347,074,2491,609,253,349505,674,968314,316,352819,991,320211,285,2381,338,686,3411,549,971,579541,303,424233,139,941774,443,365

Unit: RMB

Name of SubsidiaryOccurred in current termOccurred in previous term
RevenueNet profitTotal comprehensive incomeCash flows from operating activitiesRevenueNet profitTotal comprehensive incomeCash flows from operating activities
Shenzhen CSG Display Technology Co., Ltd.228,993,49814,924,57414,924,57427,884,58237,282,745-4,023,839-4,023,83919,571,109

X. Risk related to financial instrument

The Group's activities expose it to a variety of financial risks: market risk (primarily currency risk and interest rate risk), credit risk andliquidity risk. The Group's overall risk management programme focuses on the unpredictability of financial markets and seeks tominimise potential adverse effects on the Group's financial performance.

(1) Market risk

(a) Foreign exchange risk

The Group’s major operational activities are carried out in Mainland China and a majority of the transactions are denominated in

RMB. However, some of the export business is settled in foreign currency. Besides, the Group is exposed to foreign exchange riskarising from the recognised assets and liabilities, and future transactions denominated in foreign currencies, primarily with respect toUS dollars and Euro. The Group monitors the scale of foreign currency transactions, foreign currency assets and liabilities, and adjustsettlement currency of export business, to furthest reduce the currency risk.

As at 30 June 2017 the carrying amounts in RMB equivalent of the Group’s assets and liabilities denominated in foreign currencies

are summarized below:

30 June 2017
USDHKDOthersTotal
Financial assets denominated in foreign currency-
Cash at bank and on hand31,014,1659,535,00299,36540,648,532
Receivables110,912,9228,5637,337,205118,258,690
141,927,0879,543,5657,436,570158,907,222
Financial liabilities denominated in foreign currency-
Short-term borrowings-65,092,500-65,092,500
Payables75,305,70026623,476,06498,782,030
75,305,70065,092,76623,476,064163,874,530
31 December 2016
USDHKDOthersTotal
Financial assets denominated in foreign currency-
Cash at bank and on hand24,360,6145,551,402840,39330,752,409
Receivables105,742,398-6,917,969112,660,367
130,103,0125,551,4027,758,362143,412,776
Financial liabilities denominated in foreign currency-
Short-term borrowings-67,087,500-67,087,500
Payables74,140,79727524,217,99898,359,070
74,140,79767,087,77524,217,998165,446,570

As at 30 June 2017, if the currency had weakened/strengthened by 10% against the USD while all other variables had been held

constant, the Group’s net profit for the year would have been approximately RMB 5,662,818 (31 December 2016: approximately

RMB 4,756,788) lower/ higher for various financial assets and liabilities denominated in USD.

As at 30 June 2017, if the currency had strengthened /weakened by 10% against the HKD while all other variables had been held

constant, the Group’s net profit for the year would have been approximately RMB 4,721,682 (31 December 2016: approximately

RMB 5,230,592) higher/lower for various financial assets and liabilities denominated in HKD.

Other changes in exchange rate had no significant influence on the Group's operating activities.

(b) Interest rate risk

The Group's interest rate risk arises from long-term interest bearing borrowings including long-term borrowings and bonds payable.Financial liabilities issued at floating rates expose the Group to cash flow interest rate risk. Financial liabilities issued at fixed ratesexpose the Group to fair value interest rate risk. The Group determines the relative proportions of its fixed rate and floating rate

contracts depending on the prevailing market conditions. As at 30 June 2015, the Group’s long-term interest-bearing debt at variable

rates and fixed rates as illustrated below:

30 June 201731 December 2016
Debt at fixed rates1,570,000,0001,380,000,000
Debt at variable rates54,000,00058,660,000
1,624,000,0001,438,660,000

The Group continuously monitors the interest rate position of the Group. Increases in interest rates will increase the cost of new

borrowing and the interest expenses with respect to the Group’s outstanding floating rate borrowings, and therefore could have amaterial adverse effect on the Group’s financial position. The Group makes adjustments timely with reference to the latest market

conditions, which includes increasing/decreasing long-term fixed rate debts at the anticipation of increasing/decreasing interest rate.

(2) Credit risk

Credit risk is managed on the grouping basis. Credit risk mainly arises from cash at bank, notes receivable, accounts receivable andother receivables, etc.

The Group expects that there is no significant credit risk associated with cash at bank since they are deposited at state-owned banksand other medium or large size listed banks. Management does not expect that there will be any significant losses from

non-performance by these counterparties. Furthermore, as the Group’s bank acceptance notes receivable are generally accepted by

the state-owned banks and other large and medium listed banks, the management believes the credit risk should be limited.

In addition, the Group has policies to limit the credit exposure on accounts receivable, other receivables and trade acceptance notesreceivable. The Group assesses the credit quality of and sets credit limits on its customers by taking into account their financialposition, the availability of guarantee from third parties, their credit history and other factors such as current market conditions. Thecredit history of the customers is regularly monitored by the Group. In respect of customers with a poor credit history, the Group willuse written payment reminders, or shorten or cancel credit periods, to ensure the overall credit risk of the Group is limited to acontrollable extent.

(3) Liquidity risk

Cash flow forecasting is performed by each subsidiary of the Group and aggregated by the Group’s finance department in itsheadquarters. The Group’s finance department at its headquarters monitors rolling forecasts of the Group's short-term and long-term

liquidity requirements to ensure it has sufficient cash reserve, while maintaining sufficient headroom on its undrawn committedborrowing facilities from major financial institutions so that the Group does not breach borrowing limits or covenants on any of itsborrowing facilities to meet the short-term and long-term liquidity requirements.

As at 30 June 2017, the Group had net current liabilities of approximately RMB 3.385 billion and committed capital expenditures ofapproximately RMB 390 million. Management will implement the following measures to ensure the liquidation risk limited to acontrollable extent:

(a) The Group will have steady cash inflows from operating activities;(b) The Group will pay the debts that mature and finance the construction projects through the existing bank facilities; and(c) The Group will closely monitoring the payment of construction expenditure in terms of payment time and amount.

The financial liabilities of the Group at the balance sheet date are analysed by their maturity date below at their undiscountedcontractual cash as follows:

30 June 2017
Within 1 year1 to 2 years2 to 5 yearsOver 5 yearsTotal
Short-term borrowings2,439,522,457---2,439,522,457
Notes payable114,500,000---114,500,000
Accounts payable1,382,500,478---1,382,500,478
Interest payable98,184,696---98,184,696
Dividend payable207,533,556207,533,556
Other payables844,823,887---844,823,887
Other current liabilities300,000--300,000
Non-current liabilities due within one year1,117,193,707---1,117,193,707
Long-term borrowings78,992,500306,409,0621,474,047,671-1,859,449,233
Long-term payables-733,909,378104,962,292-838,871,670
6,283,551,2811,040,318,4401,579,009,963-8,902,879,684
31 December 2016
Within 1 year1 to 2 years2 to 5 yearsOver 5 yearsTotal
Short-term borrowings4,043,966,809---4,043,966,809
Notes payable20,000,000---20,000,000
Accounts payable1,169,869,370---1,169,869,370
Interest payable78,225,904---78,225,904
Other payables188,321,450---188,321,450
Other current liabilities300,000--300,000
Non-current liabilities due within one year1,068,336,787---1,068,336,787
Long-term borrowings73,188,850290,439,1721,287,871,345-1,651,499,367
6,642,209,170290,439,1721,287,871,345-8,220,519,687

XI. Disclosure of fair value

1. Fair value of financial assets and financial liabilities not measured at fair value

The group’s financial assets and financial liabilities measured at amortized cost mainly include: accounts receivable, short-term

borrowings, accounts payable, long term borrowings, bonds payable , long-term payables, ect.Except for financial liabilities listed below, the carrying amount of the other financial assets and liabilities not measured at fair valueis a reasonable approximation of their fair value.

30 June 201731 December 2016
Carrying amountFair valueCarrying amountFair value
Financial liabilities -
Corporate bonds payable1,000,000,000999,500,0001,000,000,0001,009,177,000
Medium term notes1,200,000,0001,257,000,0001,200,000,0001,175,308,800
2,200,000,0002,256,500,0002,200,000,0002,184,485,800

The fair values of payables and medium-term notes are the present value of the contractually determined stream of future cash flowsat the rate of interest applied at that time by the market to instruments of comparable credit status and providing substantially thesame cash flows on the same terms, thereinto bonds payable belongs to Level 1 and medium term notes belong to Level 2.

XII. Related party and related Transaction

1. Parent company of the Company

The Company has no parent company.

2. Subsidiaries of the Company

The information of subsidiaries of the Company can be found in Notes to the financial statement.

3. Joint venture of the Company

Shenzhen Nanbo Display Technology Co., Ltd. was transferred to the subsidiary of the Company from joint venture on 3 June, 2016.The Company has no joint venture on 30 June 2017.

4. Other related parties

Name of other related partiesRelations between other related parties and the Company
Shenzhen Jushenghua Co. Ltd.The person acting in concert of the Company's largest shareholder

5. Related transaction(1) Transaction of acquisition of goods, offering and reception of labor service

List of selling goods/offering labor service

Unit: RMB

Related partyContents of related transactionOccurred in this termOccurred in previous term
Shenzhen CSG Display Technology Co., Ltd.sales of goods9,665,275

6. OthersCommitments in relation to related parties

The commitments in relation to related parties contracted for but not yet necessary to be recognised on the balance sheet by theGroup as at the balance sheet date are as follows:

On 22 November 2016, the Company received a letter from its shareholder, Jushenghua, stating that to support the Group’s steady

operation and development, Jushenghua, as the shareholder of the Company, would like to offer interest-free borrowings with thetotal amount of RMB 2,000,000,000 to the Company or through related parties designated by it. For any borrowing drawn, itsrepayment date is negotiated by the Company and Jushenghua upon withdrawal.When a borrowing is due, if an extension is needed,

the Company can apply to the actual lender based on the Company’s operation; where the actual lender agrees with the extension

application, the term of the borrowing is extended accordingly. As of 30 June 2017, the shareholder had provided RMB 700,000,000long-term interest-free loans and RMB 650,000,000 short-term interest-free loans.

XIII. Commitments and contingency

Capital expenditures commitments

Capital expenditures contracted for by the Group at the balance sheet date but are not yet necessary to be recognised on the balancesheet are as follows:

30 June 201731 December 2016
Buildings,machinery and equipment386,575,774280,938,401

XIV. Other significant events

1. Segment information(1) Definition foundation and accounting policy of segment

To meet operating strategies and requirements of business development, the Group adjusted its operating structure in the period. The

Group’s management allocated resources, evaluated segment performance, updated reporting segment, and disclosed segment

information according to revised operating segments in the period. Segment information of prior year had been restated inaccordance with updated reporting segments.

-Glass segment, being engaged in the production and sales of glass products and silica sand required for the production of glass-Solar Energy Segment, being engaged in the production and sales of polysilicon and solar modules, as well as construction and

operation of photovoltaic power plants-Electronic glass and display Segment, being engaged in the production and sales of ultrathin electronic glass and display

products

The reportable segments of the Group are the business units that provide different products or service. Different businesses requiredifferent technologies and marketing strategies. The Group, therefore, separately manages the production and operation of eachreportable segment and evaluates their operating results respectively, in order to make decisions about resources to be allocated tothese segments and to assess their performance.

Inter-segment transfer prices are measured by reference to selling prices to third parties.

The assets are allocated based on the operations of the segment and the physical location of the asset. The liabilities are allocatedbased on the operations of the segment. Expenses indirectly attributable to each segment are allocated to the segments based on the

proportion of each segment’s revenue.

(2)Financial information of segment

Unit: RMB

ItemGlassSolar EnergyElectronic glass and displayOthersUnallocatedEliminationTotal
Revenue from external customers3,206,687,1591,369,755,550367,265,891629,2614,944,337,861
Inter-segment revenue18,599,06518,083,108198,90226,666,005-63,547,080
Interest income491,0622,397,32656,9323,528,724-2,287,3324,186,712
Interest expenses70,412,93137,231,83015,045,70522,791,452-2,287,332143,194,586
Asset impairment reversal946,289-62,414217,1147,7061,108,695
Depreciation and amortization expenses299,606,450134,711,85162,922,1383,079,477500,319,916
Total profit392,627,615118,589,86737,245,148-773-64,588,492-3,206,296480,667,069
Income tax expenses52,290,93613,020,01615,176,880-34,81180,453,021
Net profit340,336,679105,569,85122,068,268-773-64,553,681-3,206,296400,214,048
Total assets8,982,177,3894,952,619,5912,968,323,479134,3881,027,026,76617,930,281,613
Total liabilities2,162,476,308793,195,356695,646,8572,502,8145,865,531,9059,519,353,240
Additions of non-current assets other than long-term equity investments92,971,231404,028,047222,862,6341,886,129721,748,041

(3) Other statement

The Group’s revenue from external customers domestically and in foreign countries or geographical areas, and the total non-current

assets other than financial assets and deferred tax assets located domestically and in foreign countries or geographical areas are asfollows:

Revenue from external customersJan.-Jun. 2017Jan.-Jun. 2016
Mainland4,453,794,3313,742,134,566
Hong Kong159,110,24746,568,633
Europe10,469,92334,282,849
Asia (other than Mainland and Hong Kong)284,803,871316,839,177
Australia23,668,50619,557,991
North America9,235,67264,008,117
Other region3,255,3114,774,309
4,944,337,8614,228,165,642
Total non-current assets30 June 201731 December 2016
Mainland14,606,514,92114,392,447,014
Hong Kong12,563,60112,551,254
14,619,078,52214,404,998,268

The Group has a large number of customers, but no revenue from a single customer exceed 10% or more of the Group’s revenue.

XV. Notes to Financial Statements of the Parent Company

1. Other accounts receivable(1) Other accounts receivable disclosed by category:

Unit: RMB

CategoriesClosing balanceOpenning balance
Book balanceBad debt provisionBook valueBook balanceBad debt provisionBook value
AmountProportion %AmountProportion %AmountProportion %AmountProportion %
Other accounts receivable withdrawn bad debt provision according to credit risks characteristics3,416,531,057100%16,5110%3,416,514,5463,863,129,835100%8,8060%3,863,121,029
Total3,416,531,057100%16,5110%3,416,514,5463,863,129,835100%8,8060%3,863,121,029

Other accounts receivable with large amount and were provided bad debt provisions individually at end of period.

□ Applicable √ Non-applicable

Other accounts receivable in the portfolio on which bad debt provisions were provided on aging analysis basis

□ Applicable √ Non-applicable

Other accounts receivable in the portfolio on which bad debt provisions were provided on percentage basis

√ Applicable □ Non-applicable

Unit: RMB

Name of portfolioClosing balance
Other receivable accountsBad debt provisionproportion%
portfolio 1825,59716,5112%
portfolio 23,415,705,460
Total3,416,531,05716,5110%

Explanation for determining the basis of the portfolio:

Other receivable accounts in the portfolio on which bad debt provisions were provided on other basis

□ Applicable √ Non-applicable

(2) Accounts receivable withdraw, reversed or collected during the reporting period

The amount of provision for bad debts during the report period was RMB 7,705. The amount of the reversed or collected part duringthe report period was RMB 0.

(3) Other accounts receivable classified by the nature of accounts

Unit: RMB

Nature of accountsEnding book balanceBeginning book balance
Others825,597423,416
Accounts receivable of related party3,415,705,4603,862,706,419
Total3,416,531,0573,863,129,835

(4) Top 5 of the closing balance of the other accounts receivable collated according to the arrears party

Unit: RMB

Name of the companyNature of accountsClosing balanceAgesProportion of the total year end balance of the accounts receivable (%)Closing balance of bad debt provision
Yichang CSG Polysilicon Co., Ltd.Subsidiary1,304,538,480Within 1 year38%0
Hebei CSG Glass Co., Ltd.Subsidiary333,719,030Within 1 year10%0
Qingyuan CSG Energy Conservation New Meterials Co., Ltd.Subsidiary298,547,212Within 1 year9%0
Dongguan CSG PV-tech Co., Ltd.Subsidiary226,825,146Within 1 year7%0
Yichang CSG Display Co.,Ltd.Subsidiary195,317,564Within 1 year6%0
Total--2,358,947,432--70%

2. Long-term equity investment

Unit: RMB

ItemClosing balanceOpening balance
Book balanceImpairment provisionBook valueBook balanceImpairment provisionBook value
Investment in subsidiaries4,805,440,63215,000,0004,790,440,6324,805,440,63215,000,0004,790,440,632
Total4,805,440,63215,000,0004,790,440,6324,805,440,63215,000,0004,790,440,632

(1) Inventment in subsidiaries

Unit: RMB

Invested companyOpening balanceIncrease in the termDecrease in the termClosing balanceProvision for impairment of the current periodClosing balance of impairment provision
Chengdu CSG Glass Co., Ltd.146,679,073146,679,073
Sichuan CSG Energy Conservation115,290,583115,290,583
Tianjin Energy Conservation Glass Co. Ltd242,902,974242,902,974
Dongguan CSG Architectural Glass Co., Ltd.193,618,971193,618,971
Dongguan CSG Solar Glass Co., Ltd.349,446,826349,446,826
Yichang CSG Polysilicon Co., Ltd.632,958,044632,958,044
Wujiang CSG North-east Architectural Glass Co., Ltd.251,313,658251,313,658
Hebei CSG Glass Co., Ltd.261,998,368261,998,368
China Southern Glass (Hong Kong) Limited85,742,21185,742,211
Wujiang CSG Glass Co., Ltd.562,179,564562,179,564
Hebei Panel Glass Co., Ltd.243,062,801243,062,801
Jiangyou CSG Mining Development Co. Ltd.100,725,041100,725,041
Xianning CSG Glass Co Ltd.177,041,818177,041,818
Xianning CSG Energy Conservation Glass Co Ltd.161,281,576161,281,576
Qingyuan CSG Energy Saving New Materials Co.,Ltd300,185,609300,185,609
Shenzhen CSG Financial Leasing Co., Ltd.133,500,000133,500,000
Shenzhen CSG PV Energy Co., Ltd.100,000,000100,000,000
Shenzhen CSG Display Technology Co., Ltd.542,027,830542,027,830
Xianning CSG Photoelectric Glass Co., Ltd.38,250,00038,250,000
Others(ii)167,235,685167,235,68515,000,000
Total4,805,440,6324,805,440,63215,000,000

(2) Other notes

As at June 30, 2017, long-term equity investment in subsidiaries contained the restricted stocks granted by the Company to the

Employees of subsidiaries of the company, and the Company did not charge any fees for the restricted stocks which was deemed asan increase of costs of Long-term equity investment for subsidiaries by RMB 109,035,321 (31 December 2016:

RMB109,035,321).

The subsidiaries which have made provision for impairment were basically closed down in the previous year, and the provision forimpairment for the long-term equity investment of them had been made by the Company according to the recoverable amount.

3. Operating income and operating costs

Unit: RMB

ItemOccurred in this termOccurred in previous term
IncomeCostsIncomeCosts
Main business0000
Other business27,295,26601,077,39460,334
Total27,295,26601,077,39460,334

4. Investment income

Unit: RMB

ItemOccurred in this termOccurred in previous term
Long-term equity investment accounted by cost method389,430,562
Long-term equity investment accounted by equity method9,850,045
Total399,280,607

XVI. Supplementary Information

1. Items and amounts of extraordinary profit (gains)/loss

√Applicable □ Not applicable

Unit: RMB

ItemAmountNote
Gains/losses from the disposal of non-current asset (including the write-off that accrued for impairment of assets)-71,756
Governmental subsidy reckoned into current gains/losses (not including the subsidy enjoyed in quota or ration according to national standards, which are closely relevant to enterprise’s business)38,501,199
Other non-operating income and expenditure except for the aforementioned items541,795
Less: Impact on income tax5,814,362
Impact on minority shareholders’ equity (post-tax)1,109,957
Total32,046,919--

Explain reasons for the extraordinary profit (gain)/loss defined by Q&A Announcement No.1 on Information Disclosure forCompanies Offering Their Securities to the Public --- Extraordinary Profit/loss, and the items defined as recurring profit (gain)/lossaccording to the lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for CompaniesOffering Their Securities to the Public --- Extraordinary Profit/loss.

□Applicable √ Not applicable

2. Return on equity and earnings per share

Profit in the report periodThe weighted average net assets ratioEarnings per share
basic earnings per share (RMB/share)diluted earnings per share (RMB/share)
Net profit attributable to shareholders of the listed company(RMB)4.94%0.190.19
Net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses(RMB)4.54%0.170.17

3. Difference of accounting data under domestic and overseas accounting standards

(1) Differences of the net profit and net assets disclosed in financial report prepared under internationaland Chinese accounting standards

□ Applicable √ Not applicable

(2) Difference of the net profit and net assets disclosed in financial report prepared under overseas andChinese accounting standards

□ Applicable √ Not applicable

Section X. Documents available for Reference

I. Text of the Semi-annual Report carrying the legal representative’s signature;

II. Text of the financial report carrying the signatures and seals of the legal representative,responsible person in charge of accounting and person in charge of financial institution;

III. All texts of the Company’s documents and original public notices disclosed in the papers

appointed by CSRC in the report period.

Board of Directors ofCSG Holding Co., Ltd.22 August 2017


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