CSG HOLDING CO., LTD.
SEMI-ANNUAL REPORT 2016
Chairman of the Board:
ZENG NAN
August 2016
CSG Semi-annual Report 2016
Section I. Important Notice, Contents and Paraphrase
Board of Directors and the Supervisory Committee of CSG Holding Co., Ltd. (hereinafter referred
to as the Company) and its directors, supervisors and senior executives hereby confirm that there
are 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 and
completeness of the whole contents.
All directors attended the meeting of the Board for deliberating the semi-annual report of the
Company in person.
The Company has no plans of cash dividend distribution, bonus shares being sent and converting
capital reserve into share capital.
Mr. Zeng Nan, Chairman of the Board, CFO Mr. Luo Youming and principal of the financial
department Mr. Ding Jiuru confirm that the Financial Report enclosed in this Semi-annual Report is
true and complete.
Regarding to the forward-looking statements with future planning involved in the Report, they do
not constitute a substantial commitment for investors. Investors are advised to exercise caution of
investment risks.
This report is prepared both in Chinese and English. Should there be any inconsistency between the
Chinese and English versions, the Chinese version shall prevail.
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CSG Semi-annual Report 2016
Contents
Section I. Important Notice, Contents and Paraphrase ................................................ 1
Section II. Company profile ....................................................................................... 4
Section III. Accounting data and summary of financial indexes ................................. 6
Section IV. Report of the Board of Directors .............................................................. 8
Section V. Important Events ..................................................................................... 21
Section VI. Changes in Shares and Particulars about Shareholders .......................... 41
Section VII. Particulars about Directors, Supervisors and Senior Executives ........... 45
Section VIII. Financial Report .................................................................................. 46
Section IX. Documents available for Reference ..................................................... 141
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CSG Semi-annual Report 2016
Paraphrase
Items Refers to Contents
Company, the Company, CSG or the Group Refers to CSG Holding Co., Ltd.
Ultra-thin electronic glass Refers to The electronic glass with thickness between 0.1~1.1mm
Second-generation energy-saving glass Refers to Double silver coated glass
Third-generation energy-saving glass Refers to Triple Silver coated glass
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CSG Semi-annual Report 2016
Section II. Company profile
I. Company information
Short form of the stock Southern Glass A、Southern Glass B Stock code 000012、200012
Listing stock exchange Shenzhen Stock Exchange
Legal Chinese name of the Company 中国南玻集团股份有限公司
Abbr. of legal Chinese name of the Company 南玻集团
Legal English name of the Company CSG Holding Co., Ltd.
Abbr. of legal English name of the Company CSG
Legal Representative Zeng Nan
II. Person/Way to contact
Secretary of the Board Representative of security affairs
Name Zhou Hong Ma Limei
CSG Building, No.1 of the 6th Industrial Road, CSG Building, No.1 of the 6th Industrial Road,
Contact address
Shekou, Shenzhen, P. R.C. Shekou, Shenzhen, P. R.C.
Tel. (86)755-26860666 (86)755-26860666
Fax. (86)755-26860685 (86)755-26860685
E-mail securities@csgholding.com securities@csgholding.com
III. Other information
1. Way of contact
Whether registered address, office address and their postal codes, website address and email address of the Company changed in the
report 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 in
the report period. More details can be found in Annual Report 2015.
2. Information disclosure and preparation place
Whether information disclosure and preparation place changed in the report period or not
□ Applicable √ Not applicable
The newspapers designated by the Company for information disclosure, the website designated by CSRC for disclosing semi-annual
report and preparation place of semi-annual report did not change in the report period. More details can be found in Annual Report
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CSG Semi-annual Report 2016
2015.
3. Registration changes of the Company
Whether registration has changed in the report period or not
□ Applicable √ Not applicable
The registration date and place of the Company, its business license number, taxation registration number and organizational code did
not change in the report period. More details can be found in Annual Report 2015.
4. Other relevant information
Whether other relevant information changed in the report period or not
□ Applicable √ Not applicable
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CSG Semi-annual Report 2016
Section III. Accounting data and summary of financial indexes
I. Main accounting data and financial indexes
Whether it has retroactive adjustment or re-statement on previous accounting data for accounting policy changed and accounting
error correction or not
□Yes √ No
The report period The same period Increase/decrease year-on-year
(Jan. to Jun.2016) of last year (%)
Operating income (RMB) 4,228,165,642 3,323,039,502 27.24%
Net profit attributable to shareholders of the listed
466,883,254 205,767,344 126.90%
company(RMB)
Net profit attributable to shareholders of the listed company
423,523,383 64,267,683 559%
after deducting non-recurring gains and losses(RMB)
Net cash flow arising from operating activities(RMB) 1,046,720,349 352,563,820 196.89%
Basic earnings per share (RMB/Share) 0.22 0.10 120%
Diluted earnings per share (RMB/Share) 0.22 0.10 120%
Increased by 3.52 percentage
Weighted average ROE (%) 5.99% 2.47%
points
Increase/decrease in this
End of this period End of last year period-end over that of last
year-end (%)
Total assets (RMB) 16,975,221,410 15,489,600,160 9.59%
Net assets attributable to shareholder of listed company
7,716,520,542 7,874,310,997 -2.00%
(RMB)
Total share capital of the Company in the trade day before the disclosure day of this report
Total share capital of the Company in the trade day before the disclosure day of this report (share) 2,075,335,560
Fully diluted EPS calculated with the latest share capital (RMB/Share) 0.22
II. 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 and
Chinese accounting standards
□ Applicable √ Not applicable
No such differences in the report period.
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CSG Semi-annual Report 2016
2. Difference of the net profit and net assets disclosed in financial report prepared under overseas and
Chinese accounting standards
□ Applicable √ Not applicable
No such differences in the report period.
3. Explanation on difference of accounting data under overseas and Chinese accounting standards
□ Applicable √ Not applicable
III. Items and amounts of extraordinary profit (gains)/loss
√Applicable □ Not applicable
Unit: RMB
Item Amount Note
Gains/losses from the disposal of non-current asset (including the
228,658 --
write-off that accrued for impairment of assets)
Governmental subsidy reckoned into current gains/losses (not
including the subsidy enjoyed in quota or ration according to
47,606,029 --
national standards, which are closely relevant to enterprise’s
business)
Other non-operating income and expenditure except for the
1,542,049 --
aforementioned items
Less: Impact on income tax 7,452,914 --
Impact on minority shareholders’ equity (post-tax) -1,436,049 --
Total 43,359,871 --
Explain reasons for the extraordinary profit (gain)/loss defined by Q&A Announcement No.1 on Information Disclosure for
Companies Offering Their Securities to the Public --- Extraordinary Profit/loss, and the items defined as recurring profit (gain)/loss
according to the lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies
Offering 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&A
Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss.
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CSG Semi-annual Report 2016
Section IV. Report of the Board of Directors
I. Introduction
In the first half year of 2016, the global economic situation was turbulent, the recovery of the main economies remained weak, and
risk events occurred frequently. Under the background of a slowdown in the global economic growth and increasing uncertainty,
along with Chinese economy structure adjustment 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 year of 2016, market situation of the Company’s involving industries got better comparing with the corresponding
period of last year. Confronted with favorable market situation, under the leadership of the Board, CSG's management team insisted
on the professional spirit of professional managers, continued to adhere to the professional ethics of "Loyalty and Integrity, Diligence
and Conscientiousness", carried forward the enterprise spirit of "Realistic and Innovative, United and Efficient", and promptly seized
market opportunities and all the business got outstanding achievements. Especially, flat glass industry and solar energy industry
achieved marvelous achievements. In the first half year, the Company realized operating revenue of RMB 4,228.17 million, with a
year-on-year increase of RMB 905.13 million and growth rate of 27.24%. Net profit attributable to parent company was RMB 466.88
million, with a year-on-year increase of RMB 261.12 million and growth rate of 126.90%. Net profit attributable to shareholders of
parent company after deducting non-recurring gains and losses was RMB 423.52 million, with a year-on-year increase of RMB
359.26 million and growth rate of 559%.
In the first half year of 2016, the prices of flat glass products held comparatively firm.With the reduction of natural gas price, prime
costs were reduced and profitability of the whole industry increased significantly. Flat glass division of the Company promptly seized
market opportunities, continued to reinforce cost control, energy saving, and promote the manufacture and sales of differentiated and
high-grade products. In the first half year, flat glass division realized revenue (external sales) of RMB 1,569.19 million with a
year-on-year increase of 24.94%, and book net profit of RMB 209.15 million with a year-on-year increase of 4369.02%.
In the first half of 2016, market competition for architectural glass continued to intensify, the overall prices continued to decline, but
the market demand was sizable. Architectural glass industry of the Company further strengthened management and proactively
promoted the sales of differentiated products. In the first half year, architectural glass division realized revenue (external sales) of
RMB 1,313.42 million, the same level as the corresponding period of last year, and book net profit of RMB 150.33 million with a
year-on-year decrease of 15.36%.
In the first half of 2016, both domestic and international PV market maintained a good growth momentum. Solar energy division of
the Company grasped market opportunities, actively explored new market and expanded production capacity. In the first half year,
PV industry realized revenue (external sales) of RMB 1,254.77 million with a year-on-year increase of 102.71%, and book net profit
of RMB 198.21 million with a year-on-year increase of 3323.32%.
In the first half year of 2016, as market competition for middle and low end electronic glass products was further increasing, the
display industry remained in the doldrums. However, the market of medium and high end products of electronic glass stayed steady,
and new display product market developed rapidly. In order to enhance the profitability of the Company's electronic glass and display
industry, the Company established Electronic Glass and Display Division, incorporating its subsidiaries in the field into the
management of the division, and actively promoted development and production of medium and high end products and new products
according to market conditions. The division realized revenue (external sales) of RMB 89.71 million and book net profit of RMB
minus 3.4 million.
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CSG Semi-annual Report 2016
II. Main business analysis
Year-on-year changes of main financial data
Unit: RMB
The corresponding Increase /decrease
The report period Reasons of change
period of last year year-on-year（%）
Mainly due to the increase of revenue from
Operating revenue 4,228,165,642 3,323,039,502 27.24%
solar glass division and flat glass division
Operating costs 3,076,818,503 2,646,020,710 16.28% Mainly due to the increase of revenue
Mainly due to the decrease of
Sales expenses 128,564,831 136,462,518 -5.79%
transportation costs
Mainly due to the increase of wages and
Administration expenses 358,937,506 282,368,089 27.12%
R&D costs
Financial expenses 133,353,393 132,742,464 0.46% Mainly due to the increase of borrowing
Income tax expenses 77,843,164 6,526,647 1092.70% Mainly due to the increase of profit
Mainly because more investment for R&D
R&D investment 171,627,628 130,265,531 31.75%
in the report period
Net cash flow arising Mainly due to the increase of revenue and
1,046,720,349 352,563,820 196.89%
from operating activities time for cash collection shortened
Net cash flow arising
Mainly due to the increase of cash paid by
from investment -976,174,439 -519,761,302 87.81%
subsidiaries
activities
Net cash flow arising Mainly due to the increase in cash
-241,140,524 194,921,774 -223.71%
from financing activities payments to repay borrowings
Net increase of cash and Mainly due to more expenses on
-170,034,722 26,681,388 -737.28%
cash equivalent investment and financing activities
Major changes on profit composition or profit resources in the report period
√Applicable □ Not applicable
Due to the solar energy PV industry keeping up a steady rebound, the profitability of the Company’s solar energy industry increased
substantially. In the first half year, PV industry realized revenue (external sales) of RMB 1,254.77 million with a year-on-year
increase of 102.71%, representing 29.68% the Company’s revenue, and book net profit of RMB 198.21 million with a year-on-year
increase of 3323.32%, representing 42.6% the Company’s net profit. The industry accounted for 18.63% of the Company's sales
revenue and 2.62% of the Company's net profit in the corresponding period of the previous year.
Future development and planning extended to the report period which was published in disclosure documents such as prospectus,
placement instructions and assets reorganization report
□ Applicable √ Not applicable
There was no future development or planning extended to the report period which was published in disclosure documents such as
prospectus, placement instructions and assets reorganization report.
Review on the previous business plan and its progress during the report period
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CSG Semi-annual Report 2016
During the report period, the Company launched the business plan smoothly:
① In the first half year, the Company continued to adopt “Technology Advance and Product Innovation” as the core strategy for
business development, and took the route of differential operation and industry upgrading relying on R&D and technological
innovation. Flat glass division made use of the technical advantage accumulated in the production of float glass, actively
transforming to industrial glass field while continuously optimizing product quality. In the first half year, the flat glass indursty
created a gross profit of RMB 40.13 million from new products, and economic benefit of RMB 2.49 million by technological
innovation. The division also succeeded in developing Online Self-cleaning Glass, the construction of the production line of which is
ongoing. With the continuous introduction of new products, the Company's competitiveness in the field of flat glass and profitability
will sustain to strengthen and promote. In the face of the market environment of continuous declining of regular products,
architectural glass division continuously developed differentiated new products such as Energy-conservation and Noise-reducing
Glass, ET glass, RT Glass, and proactively promoted them. Solar energy glass division continued to strengthen technological
innovation, N4 series high efficient polycrystalline silicon wafer went into mass production, the conversion efficiency of which kept
ahead in domestic. The conversion efficiency of high efficiency solar cells produced by new process in Dongguan PV-tech exceeded
18.3%. In the first half year, new products of solar energy glass division created gross profit of RMB 221.935 million, and economic
benefit of RMB 39.284 million by technological innovation. Electronic glass and display division constantly improved technique to
promote mass production of high-alumina glass in the case of market competition of conventional ultra-thin glass becoming
increasingly fierce. Currently, the high-aluminum glass products manufactured by Qingyuan CSG have achieved standards of similar
foreign products, and passed the domestic quality control system authentication.
② The Company considers R&D to be its first priority in enterprise development. In the first half year, it further increased
investment in R&D, intensified establishment of technician team, expanded R&D team, strengthened performance review of R&D,
increased rewarding for technical achievements and constantly strengthened construction of R&D system and R&D capability. In the
first half year, the Company yielded a R&D profit of RMB 341 million in total from new products and technological innovation, and
totally submitted 44 patent applications, of which 30 applications were invention patents, accounting for 68.2% of total applications.
Up to 30 June, the Company has totally submitted 663 patent applications.
③The Company always adopts lean management as an important means to keep its profitability. The Company fully taps the
potential of energy saving and consumption reducing in the process of production so as to effectively control the costs, while
effectively improving capacity utilization rate. During the first half year, all the float glass production lines produced BQ grade
products, and the average comprehensive rate of final products reached about 90%. Meanwhile, due to substantial increase in output
of solar glass coated products, the comprehensive manufacturing costs decreased by 11.65% on a year on year basis. In the first half
year, the business of solar glass made profit of RMB 144.42 million, laying the foundation to maintain a certain level of profitability
for flat glass division. Architectural glass division achieved good business results through equipment upgrading, process optimization
and production rhythm optimization, and production costs of various architectural glass products declined in varying degrees,
production costs of single-silver, double-silver and triple-silver products respectively decreased by 10.57%、11.13% and 13.96%. In
the case of sales price under great strain, the cost advantage guaranteed the profitability of the Company’s architectural glass. To cut
down costs, improve efficiency and raise soft power of management were material measures taken by solar glass division to improve
competitiveness. Yichang Polysilicon achieved substantial progress in terms of output of products and power consumption by
developing a new generation of high efficient energy-saving reduction process. As a result, energy consumption and materials
consumption of polysilicon production line significantly decreased. At the same time, the Company did a lot for energy integrated
management. In the first half year, the total power generation which generated by the Company amounted to approximately 120.018
million kwh with a year-on-year growth of 10.26%, among which, PV power generation amounted to 31.3735 million kwh with a
year-on-year growth of 15.71%, and waste heat power generation amounted to 88.6446 million kwh with a year-on-year growth of
8.46%.
④In order to avoid financial risks effectively, the Company continued to enhance working capital management, improving the
utilization efficiency of funds through reducing occupation of funds. With the joint efforts from subsidiaries, the Company’s accounts
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CSG Semi-annual Report 2016
receivable turnover period was 22 days, 2 days less than the same period of last year, and inventory turnover period was 23 days, 7
days less than the same period of last year.
⑤ In view of the complexity of external economic environment, the Company further strengthened establishment of internal control
environment via training and appraisals. Based on the detailed analysis on various risk factors faced by the Company in production
and operation, the internal control department of the Company further improved and optimized the internal control system,
intensified risk management, promoted management efficiency, strengthened process management of various production and
operation, and increased frequency, strength and depth of internal control evaluation. The Company’s internal audit department not
only continued to strengthen the audit to day-to-day operations of the subsidiary companies but also intensified audit and
investigation on contract execution and customer satisfaction, so as to prevent various kinds of operation risks effectively.
III. Composition of main business
Unit: RMB
Increase/decrease Increase/decrease Increase/decrease
Operating
Operating cost Gross profit ratio of operating of operating cost of gross profit
revenue
revenue y-o-y y-o-y ratio y-o-y
According to industries
Flat glass 1,877,867,688 1,465,136,128 21.98% 21.99% 3.69% 13.77%
Architectural
1,306,375,266 963,900,721 26.22% -1.56% 2.65% -3.02%
glass
Solar energy 1,245,298,767 892,226,198 28.35% 102.15% 66.01% 15.59%
Electronic glass
85,374,425 61,151,467 28.37% -28.43% 3.4% -22.05%
& Display
Off-setting
(330,706,763) (329,880,386) -- -- -- --
between divisions
According to products
Flat glass 1,877,867,688 1,465,136,128 21.98% 21.99% 3.69% 13.77%
Architectural
1,306,375,266 963,900,721 26.22% -1.56% 2.65% -3.02%
glass
Solar energy 1,245,298,767 892,226,198 28.35% 102.15% 66.01% 15.59%
Electronic glass
85,374,425 61,151,467 28.37% -28.43% 3.4% -22.05%
& Display
Off-setting
(330,706,763) (329,880,386) -- -- -- --
between divisions
According to regions
Mainland China 3,698,178,307 2,715,304,890 26.58% 24.06% 13.19% 7.05%
H.K. China 46,568,633 33,421,447 28.23% 895.39% 693.79% 18.22%
Europe 34,282,849 28,307,346 17.43% -8.88% -19.91% 11.37%
Asia (excluding 316,839,177 221,291,465 30.16% 42.55% 33.65% 4.66%
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CSG Semi-annual Report 2016
Mainland China
and H.K.)
North America 64,008,117 37,911,784 40.77% 644.18% 414.57% 26.43%
Australia 19,557,991 12,502,762 36.07% -41.21% -39.82% -1.47%
Other regions 4,774,309 3,794,434 20.52% 192.34% 126.27% 23.20%
IV. Core Competitiveness Analysis
① The Company currently has created complete industrial chains in the industries it involved, which has complementary advantage.
In glass industry, the Company has built 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 purity
polycrystalline silicon materials, silicon wafer processing to cell and its module, photovoltaic rolled glass, etc. and extended to
terminal application of PV power plant.With the improvement of technology in the chains, the industrial advantages emerged.
② The Company possesses a complete industry layout. At present, the Company has established large production bases in China
located in North, East, West, South and Central region, which help the Company be better close to the market and serve the market.The
Company continually intensifies its efforts to exploit overseas market.Sales of the products have covered all over East Asia, Southeast
Asia and Middle East. Meanwhile, the Company has planned to build an artichetual glass plant in Malasia to further strengthen its
status in overseas market.
③ The 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 carried out.
Meanwhile, the management and control ability of account receivable and inventory stand in a high level within the industry.
⑤ CSG's core competitiveness also comes from the aggressive, innovative, professional, experienced management team and
technical backbone team. Based on the perfect corporate governance structure, standardized management system and business
philosophy of high-end product line and quality consciousness, the Company constantly formulates mechanism and strictly controls
the operating risk, laying a solid foundation for company’s rapid sustainable development.
During the report period, the Company's core competitiveness remained strong.
V. Investment analysis
1. External equity investment
(1) External investment
□Applicable √Not applicable
The Company had no external investment in the report period.
(2) Shareholding of financial enterprise
□Applicable √Not applicable
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CSG Semi-annual Report 2016
The Company had no shareholding of financial enterprise in the report period.
(3) Securities investment
□Applicable √Not applicable
The Company had no securities investment in the report period.
(4) Statement on shareholding of other listed company
□Applicable √Not applicable
The Company had no shareholding of other listed company in the report period.
2. Entrusted financing, derivative investment and entrusted loans
(1) Entrusted financing
□Applicable √Not applicable
(2) Derivative investment
□Applicable √Not applicable
No derivative investment in the report period.
(3) Entrusted loans
□Applicable √Not applicable
No entrusted loans in the report period.
3. Use of raised fund
□Applicable √Not applicable
The Company did not raise fund to use in the report period.
4. Main subsidiaries and joint-stock companies
√Applicable □Not applicable
Particular about main subsidiaries and joint-stock companies
Unit: RMB
Register Total assets Net Assets Operating Operating profit
Name of company Type Main business Net profit (RMB)
capital (RMB) (RMB) revenue (RMB) (RMB)
Development,
Chengdu CSG RMB260
Subsidiary manufacture and 899,845,959 375,957,827 252,983,110 5,193,608 16,384,132
Glass Co., Ltd. million
sales of various
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CSG Semi-annual Report 2016
special glass
Development,
manufacture and
Sichuan CSG
sales of various RMB 180
Energy-saving Subsidiary 610,951,228 257,385,715 227,511,195 23,871,424 25,440,704
special glass and million
Glass Co., Ltd
deep processing
of glass
Development,
Tianjin CSG
producing and
Energy RMB336
Subsidiary sales of 650,958,010 488,275,812 247,354,374 15,197,698 15,514,107
Conservation Glass million
energy-saving
Co., Ltd
special glass
Dongguan CSG Deep
RMB 240
Architectural Glass Subsidiary processing of 845,714,276 390,608,568 383,845,080 47,648,306 44,046,949
million
Co., Ltd. glass
Manufacture and
Dongguan CSG
sales of RMB 480
Solar Glass Co., Subsidiary 1,216,799,132 648,327,916 495,278,964 85,838,051 74,449,969
Solar-Energy million
Ltd.
Glass products
Manufacture and
Yichang CSG RMB
sales of high
Polysilicon Co., Subsidiary 1,467.98 3,518,005,012 1,205,086,019 849,585,959 177,356,921 153,511,919
purity silicon
Ltd. million
material products
Wujiang CSG East Deep
RMB 320
China Architectural Subsidiary processing of 717,380,441 445,120,090 294,941,208 37,947,404 33,414,791
million
Glass Co., Ltd. glass
Manufacture and
Dongguan CSG RMB 516
Subsidiary sales of solar 914,872,101 377,880,848 494,440,733 43,554,598 37,874,249
PV-tech Co., Ltd. million
cells and modules
Manufacture and
Hebei CSG Glass USD 48.06
Subsidiary sales of various 743,366,635 355,635,698 121,489,396 -8,725,372 -5,144,019
Co., Ltd. million
special glass
Manufacture and
Wujiang CSG Glass RMB 565.04
Subsidiary sales of various 1,639,405,702 662,271,189 712,297,354 109,857,700 95,689,475
Co., Ltd. million
special glass
CSG (Hong Kong) Investment HKD 86.44
Subsidiary 1,196,978,448 1,079,538,436 0 88,833,284 89,121,140
Limited holding million
Manufacture and
Hebei Panel Glass sales of various RMB 243
Subsidiary 329,933,615 258,992,751 47,409,082 4,642,249 4,089,236
Co., Ltd. ultra-thin million
electronic glass
Development and
Xianning CSG RMB 235
Subsidiary manufacture and 694,350,667 269,142,827 316,345,359 21,724,842 27,515,864
Glass Co., Ltd. million
sales of various
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CSG Semi-annual Report 2016
special glass
Xianning CSG Deep
RMB 215
Energy-saving Subsidiary processing of 640,729,553 258,356,412 165,056,951 14,551,416 29,459,827
million
Glass Co., Ltd glass
Qingyuan CSG
Manufacture and
Energy
sales of various RMB 300
Conservation Subsidiary 789,101,597 265,212,504 5,544,045 -4,673,553 -3,394,754
ultra-thin million
New-materials Co.,
electronic glass
Ltd.
Jiangyou CSG Manufacture and
Mining sales of silica RMB 100
Subsidiary 163,333,351 67,199,806 27,771,366 625,363 469,022
Development Co., sand and million
Ltd. co-product
Shenzhen CSG Manufacture and
RMB 143
Display Technology Subsidiary sales of display 1,603,624,102 704,761,687 186,206,918 142,998,089 21,718,679
million
Co., Ltd. device products
Investment &
Shenzhen CSG PV RMB 100
Subsidiary development of 125,035,145 124,637,934 0 -1,792,865 -1,345,598
Energy Co., Ltd. million
solar PV plant
CSG (Hongkong)
Investment and HKD 1
Investment Co., Subsidiary 53,998,670 26,861,422 181,350,783 7,540,964 6,296,556
trading million
Ltd.
Note: On 17 May 2016, the interim meeting of the 7th Board of Directors approved the proposal of purchasing 16.10% equity of
Shenzhen CSG Display Technology Co., Ltd. The equity transfer completed in June 2016, and Shenzhen CSG Display Technology
Co., Ltd. became a subsidiary of the Company, included in the scope of consolidated statements.
5. Major investment with non-raised fund
√Applicable □Not applicable
Unit: RMB’0,000
Accumulative
Amount amount
Investment Returns from
Project invested in actually Progress of project (ongoing projects)
amount project
this year invested ended
as period-end
Planning to build a high-performance ultra-thin electronic
Qingyuan glass production line with monthly capacity of Loss of RMB
high-performa approximately one million square meters in Qingyuan, 3.39 million
nce ultra-thin 47,166 7,221 58,615 which adopts CSG’s unique technology to produce was made in
electronic 0.55mm~1.1mm high performance ultra-thin electronic the report
glass project glass. The project entered commercial production in June period.
2016.
15
CSG Semi-annual Report 2016
Expansion Planning to implement silicon wafer expansion, of which,
Net profit of
project of 300MW project went into operation in 2014 and 400MW
RMB 81.563
700MW project completed the installation and debugging for main
198,000 4,511 58,691 million was
silicon wafer equipment in December 2015 and then entered
achieved in the
in Yichang commercial production in January 2016.
report period.
CSG
Planning to add a new cold-hydrogenation line in
Yichang CSG
Yichang CSG, which can produce electronic grade
upgrading & In the project
polysilicon on basis of the solar grade polysilicon device,
expansion construction
and meanwhile add correspondent systems of reduction,
project of 61,322 8,069 8,712 phase, no
rectification, recycle and utilities, so as to boost the actual
electronic earnings were
capacity of polysilicon up to 12,000 tons/year (including
grade achieved.
2,500 tons/year for electronic grade polysilicon and 9,500
polysilicon
tons/year for solar grade polysilicon).
Expansion Planning to expand a polycrystalline cell production line
project of in Dongguan PV. After completion of project, the In the project
150MW cell designed capacity will improve to 350MW/year from construction
production 16,810 5,515 5,515 200MW/year, and the actual capacity will reach phase, no
line in 560MW/year. earnings were
Dongguan achieved.
CSG PV-tech
The expansion Planning to expand efficient silicon wafer production
In the project
project of capacity of 1GW in Yichang CSG based on the existing
construction
1GW silicon 1GW silicon wafer capacity, to realize 2.0GW silicon
107,479 183 183 phase, no
wafers wafer production capacity.
earnings were
inYichang
achieved.。
CSG
The Company plans to invest and construct PV power
plants during 2016-2017, of which 200MW will be built
by its subsidiary Shenzhen CSG PV Energy Co., Ltd. and
140MW by CSG cooperating with Kibing Group. In
In the project
PV power February 2016, Xianning PV ground power plant
construction
plant construction project was contracted. On 21 June 2016, the
250,000 6,021 6,021 phase, no
investment Company completed the installation of 11MW distributed
earnings were
project PV power plant modules located on the roof of
achieved.
Zhangzhou Kibing Glass Co., Ltd., and grid connection is
ongoing now. In June 2016, the installation of 15MW
distributed PV power plant in Heyuan CSG Kibing
Company started.
Dongguan PV The Company plans to construct a module workshop with In the project
module 11,066 0 0 final production capacity of 500MW, through removing construction
production part of the equipment from its subsidiary Dongguan CSG phase, no
16
CSG Semi-annual Report 2016
line removal, PV-tech Co., Ltd. as well as purchasing some equipment earnings were
equipment to help module production capacity in Xianning factory achieved.
upgrading and realize 300 MW in the first stage, and in the follow-up
expansion stage it will be expanded to 500MW according to market
project situation.
Dongguan The Company plans to build an online self-cleaning
In the project
CSG Solar coated glass production line in Dongguan Solar Energy.
construction
online
5,539 0 0 phase, no
self-cleaning
earnings were
coated glass
achieved.
project
Project of The Company plans to build an architectural glass factory In the project
establishing in Negeri Sembilan, Malaysia. The first-phase annual construction
architectural 36,000 0 0 production capacity of the new factory contains 1.2 phase, no
glass plant in million square meters of insulating glass and 1 million earnings were
Malaysia square meters of one-chip coated glass. achieved.
Production The Company plans to establish a photoelectric glass
line of 4 production line in Xianning with annual capacity of 4 In the project
million m2 million m2, the products of which is applied for new-type construction
Light Guiding 51,000 10,200 10,200 ultra-thin LCD display. This production line also has the phase, no
Panel ability to produce ultra-thin electronic glass with higher earnings were
photoelectric strength than that of Qingyuan CSG Company. achieved.
glass
Subtotal 784,382 41,720 147,937 -- --
Accumulative
Amount amount
Investment Returns from
Project invested in actually Progress of project (projects suspension)
amount project
this year invested ended
as period-end
Planning to increase two coating glass production lines In the report
and support insulating glass capacity. When the project is period, part of
Expansion on
completed, the capacities of wide flat coated glass will the project has
energy-saving
add 3 million square meters, and capacity of coated been completed
glass capacity 47,913 0 21,239
insulating glass will add 1.2 million square meters per and the revenue
of Wujiang
year, among which, the wide flat coated glass line of 3 was not
Project
million square meters has been completed, and the others calculated
will be invested according to market situations. individually.
Yichang CSG Planning to build a crystalline silicon solar cell
700MW production line with annual capacity of 700MW. The
169,330 0 0 --
crystalline project was suspended and further investment will be
silicon solar based on actual industry situations.
17
CSG Semi-annual Report 2016
cell project
Expanding Planning to expand the solar module production line with
500MW solar annual capacity of 500MW. The project was suspended
module 63,600 0 0 and further investment will be based on actual industry --
project in situations.
Dongguan
Hebei Panel Planning to establish a production line for
Glass project medium-alumina ultra-thin electronic glass in Hebei
of Panel Glass, using clean natural gas as the fuel, and
medium-alumi 25,950 0 353 produce 0.33mm ～ 1.1mm medium-alumina ultra-thin --
na ultra-thin glass with float process. The project was suspended and
electronic further investment will be based on actual industry
glass situations.
Subtotal 306,793 0 21,592 -- --
Total 1,091,175 41,720 169,529 -- --
Explanation on major investment with non-raised fund
1. Qingyuan high-performance ultra-thin electronic glass project was deliberated and approved by the 12th meeting of the 6th board
of directors on 2 Aug. 2013 and disclosed on 6 Aug. 2013, Notice No.: 2013-019.
2. Expansion on energy-saving glass capacity of Wujiang Project and expansion project of 700MW silicon wafer in Yichang CSG
were deliberated and approved by the 18th meeting of the 5th board of directors on 23 December 2010 and disclosed on 25
December 2010, Notice No.: 2010-046.
3. Yichang CSG upgrading & expansion project of electronic grade polysilicon was deliberated and approved by the 5th meeting of
the 7th board of directors on 27 Mar. 2015 and disclosed on 31 Mar. 2015, Notice No.: 2015-009.
4. Expansion project of 150MW cell production line in Dongguan CSG PV-tech was deliberated and approved by the 10th meeting
of the 7th board of directors on 5 Jan. 2016 and disclosed on 6 Jan. 2016, Notice No.: 2016-001.
5. The expansion project of 1GW silicon wafers inYichang CSG was respectively deliberated and approved by the 10th meeting of
the 7th board of directors on 5 Jan. 2016 and the 13th meeting of the 7th board of directors on 15 Apr. 2016 , and respectively
disclosed on 6 Jan. 2016 and 16 Apr. 2016, Notice No.: 2016-001, 2016-018.
6. PV power plant investment project was deliberated and approved by the 11th meeting of the 7th board of directors on 21 Jan. 2016
and disclosed on 22 Jan. 2016, Notice No.: 2016-006.
7. Dongguan PV module production line removal, equipment upgrading and expansion project, Dongguan CSG Solar online
self-cleaning coated glass project and project of establishing architectural glass plant in Malaysia were deliberated and approved by
the 13th meeting of the 7th board of directors on 15 Apr. 2016 and disclosed on 16 Apr. 2016, Notice No.: 2016-018.
8. Production line of 4 million m2 Light Guiding Panel photoelectric glass was deliberated and approved by the interim meeting of
the 7th board of directors on 20 May 2016 and disclosed on 21May 2016, Notice No.: 2016-025.
9. Hebei Panel Glass project of medium-alumina ultra-thin electronic glass was deliberated and approved by the 4th meeting of the
7th board of directors on 27 Oct. 2014 and disclosed on 29 Oct. 2014, Notice No.: 2014-030.
18
CSG Semi-annual Report 2016
VI. Prediction of business performance from January to September 2016
Alert of loss or significant change in accumulative net profit from the beginning of year to the end of the next report period or
compared with the same period of last year, and statement of causations.
□ Applicable √Not applicable
VII. Explanation on “Non-standard audit report” from CPA by the Board and Supervisory
Committee
□ Applicable √Not applicable
VIII. Explanation from the Board for “Non-standard audit report” of last year
□ Applicable √Not applicable
IX. Implementation of profit distribution in the report period
Plan of profit distribution in the report period expecially the implementation or adjustment for the Plans of cash dividend distribution
and share converted from capital reserve
√Applicable □Not applicable
The profit distribution plan for 2015 was approved by Annual General Shareholders’ Meeting of 2015 held on 15 April 2016 which
distributed RMB 3 (tax included) in cash for every 10 shares to all shareholders. Notice of the distribution was published on China
Securities Journal, Securities Times and Hong Kong Commercial Daily on 11 May 2016, and the profit has been distributed. The
Company had no plans of cash dividend distribution or share converted from capital reserve in the first half year of 2016.
Special explanation on cash dividend policy
Satisfy regulations of General Meeting or requirement of Article of Association
Yes
(Yes/No)
Well-defined and clearly dividend standards and proportion (Yes/No) Yes
Completed relevant decision-making process and mechanism (Yes/No) Yes
Independent directors perform duties completely and play a proper role (Yes/No) Yes
Minority shareholders have ample opportunities and their legitimate rights and
Yes
interests are effectively protected (Yes/No)
Condition and procedures are compliance and transparent while the cash bonus
Yes
policy adjusted or changed (Yes/No)
X. Plans of profit distribution and share converted from capital reserve in the report period
□ Applicable √Not applicable
The Company had no plans of cash dividend distribution, bonus shares distribution or share converted from capital reserve in the first
half of the year.
19
CSG Semi-annual Report 2016
XI. Reception of research, communication and interview in the report period
√ Applicable □ Not applicable
Contents discussed and material
Time Place Way Type Reception
provided
Shenzhen JunHai Investment Management Co.,
Field Introduced the operation condition
2016-2-23 The Company Institute Ltd. and Matthews International Capital
research of the Company disclosed
Management, LLC
Guotai Junan Securities, Yongy Investment
Holding Group, Beijing Hallwinning
Investment Management Co., Ltd., FINE
Field Introduced the operation condition
2016-3-30 The Company Institute HEDGEFUNDS MANAGEMENT CO., LTD.,
research of the Company disclosed
MORGAN STANLEY HUAXIN FUNDS,
Fuhua Asset, Time Investment, and Beijing
Zhongxin Huacheng Investment Co., Ltd.
Yuanta Securities, Shin Kong Life Insurance
Co., Ltd., HUA NAN INVESTMENT TRUST,
Field Introduced the operation condition
2016-4-25 The Company Institute China Life Insurance Co., Ltd., GAINS
research of the Company disclosed
Investment Corp. and Capital Investment Trust
Corp.
Samsung Asset Management, HI Asset
Field Management, Shinyoung Securities, KB Asset Introduced the operation condition
2016-5-24 The Company Institute
research Management, Fubon Securities Investment of the Company disclosed
Trust and CMS (HK)
20
CSG Semi-annual Report 2016
Section V. Important Events
I. Corporate governance of the Company
In strict compliance with the requirements of the relevant laws and regulation including The Company Law, Securities Law and Rule
of Governance for Listed Company, the Company has been putting efforts in improving the corporate governance, strengthening
management of information disclosure, regulating operation activities and establishing a modern corporate system. At present, the
system for corporate governance of the Company is basically perfect, operation is regulated, corporate governance is consummated,
which accord with the requirements of relevant documents on corporate governance of listed company issued by CSRS. During the
report period, it did not exist that the company provided the undisclosed information to the largest shareholder and actual controller.
And it did not exist that non-operating fund of listed company was occupied by the largest shareholder or its affiliated enterprises.
In order to strengthen internal control for information disclosure of CSG Holding Co., Ltd., enhance relevant personnel’s disclosure
consciousness, strengthen information collection and delivery of the Company, and improve the quality of information disclosure, the
14th meeting of the 7th Board of Directors deliberated and approved the proposal of the establishment of Information Disclosure
Committee, and formulated detailed rules for the implementation of Information Disclosure Committee. During the report period, the
Company conscientiously fulfilled the detailed rules for the implementation of Information Disclosure Committee and regularly held
meetings of Information Disclosure Committee, which guaranteed facticity, accuracy and completeness of information disclosure and
fairness of information disclosure, improved the quality of information disclosure of the Company as well.
To protect legitimate rights and interests of small investors, and cooperate with "Blue Sky Action", a special task for investor
protection conducted by Shenzhen Securities Regulatory Bureau , the Company actively developed a special work plan for "Blue Sky
Action", formulating a scheme for investor protection in several aspects including improving quality of information disclosure,
strengthening positive interaction between investors and the Company, carrying out investor education, and regularly declosing
investor protection work report .During the report period, all the work was forging ahead on its own.
21
CSG Semi-annual Report 2016
II. Lawsuit
Significant lawsuits
□ Applicable √Not applicable
The Company had no significant lawsuits or arbitrations in the report period.
Other lawsuits
√ Applicable □ Not applicable
Amounts Projected lawsuit (Arbitration)
General Statement on Execution of Date of Index of
(RMB liabilities lawsuit (Arbitration) Progress Trial Results and
lawsuit (Arbitration) lawsuit (Arbitration) Judgment Disclosure Disclosure
0,000) formed or not Influence
The two sides of the case reached an agreement through Sanmu Industrial has paid off the
conciliation under the auspices of the court and got the Paper overdue payment and the payment
of Civil Mediation on February 26, 2016.Pursuant to the for finished goods delivery, yet it
Contract dispute
Paper of Civil Mediation, Sanmu Industrial should settle the has not settled the payment of
between Yichang The case was
1,997.47 No outstanding payment owed to Yichang Display for shipped RMB 11.09 million which was -- --
Display and Sanmu closed.
goods in 2 installments.Yichang Display would transfer the owed to Yichang display for raw
Industrial
raw materials and semi-finished products which had already materials and semi-finished
purchased to Sanmu Industrial at the price of RMB11, goods.The case is still in the
097,605. implementation stage now.
Contract disputes
between Yichang
This case is one of the series of cases that suppliers proceeded
Display and other
against Yichang Display arising from the contract dispute The case remains
three companies 335.45 No -- -- --
case of Shenzhen Sanmu. The court of first instance hasn’t unclosed.
including Zhuhai
opened a court session currently.
Sanyuantai Doumen
Electron Co., Ltd.
22
CSG Semi-annual Report 2016
Contract disputes
between Yichang
This case is one of the series of cases that suppliers proceeded
Display and other two The case was The implementation has been
368.18 No against Yichang Display arising from the contract dispute -- --
companies including closed. finished.
case of Shenzhen Sanmu. The case was closed in mediation.
Shenzhen Dewoer
Industrial Co., Ltd
Contract dispute
between Yichang
This case is one of the series of cases that suppliers proceeded It is still in the process of
Display and The case was closed
189.39 No against Yichang Display arising from the contract dispute implementation.
Dongguan Xinyouwei in mediation.
case of Shenzhen Sanmu. The case was closed in mediation.
Adhesive Products
Co., Ltd
III. Question from media
□ Applicable √Not applicable
There was no general question from media in the report period.
IV. Bankruptcy reorganization
□ Applicable √Not applicable
There was no bankruptcy reorganization occurred in the report period.
23
CSG Semi-annual Report 2016
V. Assets transaction
1. Acquisition of assets
√ Applicable □ Not applicable
Ratio of net profit
Transactio Impact on
Counterparty/ulti Acquired attributable to listed Whether be Association relationship with
n price Progress profit and loss Date of Index of
mate controlling /replaced Impact on the business of the Company company from such the related counterparty(applied to related
(RMB of the disclosure disclosure
party assets assets in total net transactions transaction)
0,000) Company
profit
Through the acquisition of Feng Wei technology, the
Vice President of CSG, Zhang
Fengwei Company can quickly master the key technologies for
Bozhong, is one of the
Industrial Co., production of light guiding panel photoelectric material,
shareholders of Qianhai Ruinan,
Ltd., Xinbang 100% equity of speed up the process of the project.Meanwhile, it is
with 40% equity held. Pursuant to
Investment Co., Xianning Equity conducive to ensuring the Company staying ahead in the
Shenzhen Stock Exchange Stock
Ltd. and Fengwei 10,200 transfer field of light guiding panel photoelectric material, No effect -- Yes 2016-5-21 2016-026
Listing Rules (2014 Revised),
Shenzhen Technology completed grabing anticipate opportunity for domestic market of
Qianhai Ruinan is the affiliated
Qianhai Ruinan Co., Ltd. light guiding panel photoelectric material,further
legal person of the Company and
Investment improving the product structure in photoelectric glass
this transaction constitutes a
Company industry chain of the Company, and enhancing the overall
related transaction.
competitiveness of the Group.
Through purchasing part of the equity of Shenzhen
16.10% equity display, CSG again became the controlling shareholder of
Shenzhen Xinshi of Shenzhen Equity Shenzhen Display. As the controlling shareholder, CSG
Investment Co., CSG Display 46,435 transfer would increase support and strengthen management for No effect -- No -- 2016-5-21 2016-027
Ltd. Technology completed Shenzhen Display, impelling it to move towards the road
Co., Ltd. of benign development, and ultimately guarantee profit
maximization of CSG.
24
CSG Semi-annual Report 2016
2. Sales of assets
□Applicable √ Not applicable
No assets were sold in the report period.
3. Enterprise combination
□Applicable √ Not applicable
No enterprise combination in the report period.
VI. Implementation and its influence of equity incentive plan
□Applicable √ Not applicable
No equity incentive plan or implementation of quity incentive in the report period.
VII. Major related transaction
1. Related transaction with routine operation concerned
√Applicable □ Not applicable
Proportion Approved Whether Market
Trading
Related in the amount of over the price of
Related Related Related amount Date of
transactio Pricing Dealing amount of transactio approved Means of similar Index of
transactio relationshi transactio (RMB disclosu
n principle price the same n (RMB amount or payments transactio disclosure
n parties p n content 0,000 ,tax re
type transactio 0,000) not n
included)
n (%) available
Sales
Shenzhen
products
CSG Sales of
Associate and Refers to Not
Display utra-thin monthly Not 2016-1-
d commodit market applica 1,131 0.23% 25,000 No 2016-007
Technolog electronic settlement applicable 22
enterprise ies to price ble
y Co., glass
related
Ltd.
party
Total -- -- 1,131 -- 25,000 -- -- -- --
Details of major sold-out order sent back N/A
The actual implementation of routine related transactions that is about to occurred in the In the report period, the total of routine related transactions was
Period with total amount estimated by category (if any) in the estimated range.
Reason for the great difference between trade price and market reference price (if any) Not applicable
25
CSG Semi-annual Report 2016
2. Related transaction with acquisition of assets or equity, sales of assets concerned
□Applicable √ Not applicable
No related transaction with acquisition of assets or equity, sales of assets concerned occurred in the report period.
3. Related transaction with jointly external investment concerned
□ Applicable √ Not applicable
No related transaction with jointly external investment concerned occurred in the report period.
4. Credits and liabilities with related parties
□ Applicable √ Not applicable
No credits and liabilities with related parties in the report period.
5. Other major related transaction
√Applicable □ Not applicable
On 20 May 2016, the Company convened an interim meeting of the 7th Board of Directors, Ltd, at which, the proposal of investment
in 4 million m2 light guiding panel photoelectric glass production line and acquisition of 100% equity of Xianning Fengwei
Technology Co., Ltd. was deliberated and approved, which meant that the Board agreed the Company and its wholly-owned
subsidiary Hetai Company to acquire 100% equity of Xianning Fengwei Technology Co., Ltd. held by Fengwei Industrial Co., Ltd.,
Xinbang Investment Co., Ltd. and Shenzhen Qianhai Ruinan Investment Corporation (Limited Partner), with the transfer price of
RMB 102 million. Upon completion of this equity transfer, Fengwei Technology will become a wholly-owned subsidiary of CSG,
and will be included in consolidated financial statement.
Vice President of CSG, Zhang Bozhong, is one of the shareholders of Qianhai Ruinan, with 40% equity held. Pursuant to Shenzhen
Stock Exchange Stock Listing Rules (2014 Revised), Qianhai Ruinan is the affiliated legal person of the Company and this transaction
constitutes a related transaction.
Enquiry website for interim announcement of the major related transaction
Name of interim announcement Disclosure date Disclosure website
Announcement of acquisition of 100% equity of Xianning Fengwei
2016-5-21 Juchao Website
Technology Co., Ltd. and related transaction
VIII. Particular about non-operating fund of listed company occupied by controlling
shareholder 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 the
report period.
26
CSG Semi-annual Report 2016
IX. Significant contracts and their implementation
1. Trusteeship, contracting and leasing
(1) Trusteeship
□ Applicable √ Not applicable
No trusteeship in the report period.
(2) Contract
□ Applicable √ Not applicable
No contract in the report period.
(3) Leasing
□ Applicable √ Not applicable
No leasing in the report period.
2. Guarantee
√Applicable □ Not applicable
Unit: RMB 0,000
Particulars about the external guarantee of the Company (Barring the guarantee for subsidiaries)
Complet
Actual date of Guarantee
Related Actual e
Name of the Company Guarant happening (Date Guarantee Guarantee for related
Announcement guarante impleme
guaranteed ee limit of signing type term party (Yes
disclosure date e limit ntation
agreement) or no)
or not
Guarantee of the Company for the subsidiaries
Complet
Actual date of Guarantee
Related Actual e
Name of the Company Guarant happening (Date Guarantee Guarantee for related
Announcement guarante impleme
guaranteed ee limit of signing type term party (Yes
disclosure date e limit ntation
agreement) or no)
or not
General
Wujiang CSG Glass Co., Ltd. 2016-01-06 10,000 2016-01-25 491 1 year Yes No
guarantee
Tianjin CSG Energy General
2015-08-16 10,000 2015-08-25 1,200 1 year No No
Conservation Glass Co., Ltd guarantee
Wujiang CSG East China General
2015-06-16 15,000 2015-12-23 10,000 1 year No No
Architectural Glass Co., Ltd. guarantee
Xianning CSG Energy-saving General
2015-06-16 3,000 2015-07-07 2,600 1 year Yes No
Glass Co., Ltd guarantee
General
Wujiang CSG Glass Co., Ltd. 2016-01-06 10,000 2016-01-25 1,506 1 year No No
guarantee
27
CSG Semi-annual Report 2016
Dongguan CSG Solar Glass General
2015-08-16 8,000 2015-09-15 1,400 1 year No No
Co., Ltd. guarantee
Xianning CSG Energy-saving General
2015-08-16 6,000 2015-09-10 500 1 year No No
Glass Co., Ltd guarantee
Xianning CSG Energy-saving General
2015-08-16 6,000 2015-09-10 4,500 1 year No No
Glass Co., Ltd guarantee
General
Wujiang CSG Glass Co., Ltd. 2016-01-06 10,000 2016-01-25 1,070 1 year No No
guarantee
General
Wujiang CSG Glass Co., Ltd. 2016-01-06 10,000 2016-01-25 724 1 year No No
guarantee
General
Wujiang CSG Glass Co., Ltd. 2016-01-06 10,000 2016-01-25 47 1 year No No
guarantee
Dongguan CSG Solar Glass General
2015-08-16 8,000 2015-09-15 3,565 1 year No No
Co., Ltd. guarantee
Dongguan CSG Solar Glass General
2016-03-24 2,556 2016-04-29 860 1 year No No
Co., Ltd. guarantee
Dongguan CSG Architectural General
2016-02-08 15,000 2015-04-01 1,323 1 year No No
Glass Co., Ltd. guarantee
Dongguan CSG Architectural General
2015-08-16 11,200 2015-09-15 205 1 year No No
Glass Co., Ltd. guarantee
Tianjin CSG Energy General
2015-08-16 10,000 2015-08-25 801 1 year No No
Conservation Glass Co., Ltd guarantee
General
Chengdu CSG Glass Co.,Ltd. 2016-03-25 4,973 2016-04-05 1 1 year No No
guarantee
Sichuan CSG Energy General
2016-03-25 4,973 2016-04-05 496 1 year No No
Conservation Glass Co., Ltd. guarantee
Sichuan CSG Energy General
2016-03-25 5,000 2016-04-25 350 1 year No No
Conservation Glass Co., Ltd. guarantee
Wujiang CSG East China General
2016-01-06 5,000 2016-01-22 1,707 1 year No No
Architectural Glass Co., Ltd. guarantee
Wujiang CSG East China General
2015-06-16 5,000 2015-07-07 300 1 year No No
Architectural Glass Co., Ltd. guarantee
Xianning CSG Energy-saving General
2015-08-14 6,000 2015-08-18 16 1 year No No
Glass Co., Ltd guarantee
Dongguan CSG PVTech Co., General
2015-08-16 3,000 2015-09-15 3,000 1 year No No
Ltd. guarantee
Dongguan CSG PVTech Co., General
2016-02-08 5,000 2015-04-01 1,284 1 year No No
Ltd. guarantee
28
CSG Semi-annual Report 2016
Yichang CSG Polysilicon General
2015-06-16 5,000 2015-07-07 747 1 year No No
Co.,Ltd. guarantee
Wujiang CSG East China General
2015-08-14 10,000 2015-09-16 58 1 year No No
Architectural Glass Co., Ltd. guarantee
Total amount of approving guarantee for Total amount of actual occurred guarantee for
162,492 38,751
subsidiaries in report period (B1) subsidiaries in report period (B2)
Total amount of approved guarantee for Total balance of actual guarantee for
388,260 36,335
subsidiaries at the end of reporting period (B3) subsidiaries at the end of reporting period (B4)
Total amount of guarantee of the Company( total of two abovementioned guarantee)
Total amount of approving guarantee in report Total amount of actual occurred guarantee in
162,492 38,751
period (A1+B1) report period (A2+B2)
Total amount of approved guarantee at the end of Total balance of actual guarantee at the end of
388,260 36,335
report period (A3+B3) report period (A4+B4)
The proportion of the total amount of actually guarantee in the net
4.71%
assets of the Company(that is A4+ B4)
Including:
Amount of guarantee for shareholders, actual controller and its related parties(C) 0
The debts guarantee amount provided for the guaranteed parties whose
0
assets-liability ratio exceed 70% directly or indirectly(D)
Proportion of total amount of guarantee in net assets of the Company exceed
0
50%(E)
Total amount of the aforesaid three guarantees(C+D+E) 0
The Company shall bear joint and several
Explanations on possibly bearing joint and several liquidating responsibilities for
liabilities in guarantee range if the subsidiaries
undue guarantees
fail to fulfill the obligation of repayment.
Explanations on external guarantee against regulated procedures N/A
(1) Illegal external guarantee
□ Applicable √ Not applicable
No illegal external guarantee in the report period.
3. Other major contracts
□ Applicable √ Not applicable
The Company had no other major contracts in the report period.
4. Other major transactions
□ Applicable √ Not applicable
The Company had no other major transactions in the report period.
29
CSG Semi-annual Report 2016
X. Commitments from the Company or shareholder with over 5% shareholding in the report
period or continues to the report period
√ Applicable □ Not applicable
Commit-ment Commit- Implement-
Commitments Promisee Content of commitments
date ment term ation
The 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 the Company had
all released. Therein, the original
non-tradable shareholder Shenzhen
International Holdings (SZ) Limited and
The original
Xin Tong Chan Industrial Development By the end of
non-tradable
(Shenzhen) Co., Ltd. both are the report
shareholder
wholly-funded subsidiaries to Shenzhen period, the
Shenzhen
International Holdings Limited above
International
(hereinafter Shenzhen International for shareholders
Commitments for Holdings (SZ)
short) listed in Hong Kong united stock 2006-05-22 N/A of the
Share Merger Reform Limited and Xin
exchange main board. Shenzhen Company had
Tong Chan
International made commitment that it strictly carried
Industrial
would strictly carry out related out their
Development
regulations of Securities Law, promises.
(Shenzhen) Co.,
Administration of the Takeover of Listed
Ltd.
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.
Foresea Life Insurance Co., Ltd., By the end of
During
Shenzhen Jushenghua Co., Ltd. and the report
the period
Chengtai Group Co., Ltd. issued detailed period, the
Foresea Life when
report of equity change on 29 June 2015, above
Insurance Co., Ltd,, Foresea
Commitments in report in which, they undertook to keep shareholders
Shenzhen Life
of acquisition or equity independent from CSG in aspects of 2015-6-29 of the
Jushenghua Co., remains
change personnel, assets, finance, organization Company had
Ltd. and Chengtai the largest
set-up and business as long as Foresea strictly carried
Group Co., Ltd. sharehold
Life Insurance remained the largest out their
er of the
shareholder of CSG. Meanwhile, they promises.
Company
made commitment on regularizing related
30
CSG Semi-annual Report 2016
transaction and avoiding industry
competition.
Commitments in assets
reorganization
By the end of
the report
The Company’s shareholders, Foresea period, the
Foresea Life Life Insurance Co., Ltd.and China North From above
Commitments in initial Insurance Co., Ltd., Industries Corporation, made Nov. 25, shareholders
public offering or China North commitments that they would not reduce 2015-11-25 2015 to of the
re-financing Industries CSG's shares within six months after Jul. 2, Company had
Corporation private placement of CSG from Nov. 25, 2016 strictly carried
2015. out their
promises.
Equity incentive
commitment
By the end of
the report
The Company’s shareholders, Foresea period, the
Foresea Life Life Insurance Co., Ltd.and China North above
From Jul.
Insurance Co., Ltd., Industries Corporation, made shareholders
Other commitments for 15, 2015
medium and small China North commitments that they would not reduce 2015-07-15 of the
shareholders to Jan. 15,
Industries CSG's shares within six months after Company had
2016
Corporation private placement of CSG from July 15, strictly carried
2015. out their
promises.
Completed on
Yes
time(Y/N)
If the commitments is
not fulfilled on time,
Not applicable
explain the reasons and
the next work plan
XI. 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.
31
CSG Semi-annual Report 2016
XII. Penalty and rectification
□ Applicable √ Not applicable
There was no penalty or rectification in the report period.
XIII. Risk announcement of delisting for violating laws and rules
□ Applicable √ Not applicable
The Company had no risk of delisting for violating laws or rules in the report period.
XIV. Other major events
√ Applicable □ Not applicable
1. Plan of non-public offering of A-share
Disclosure Disclosure
Summary of item Interim announcement
date website
"Announcement of the interim meeting
resolution of the seventh board of
Proposals of non-public offering of A-share to specific directors"
investors etc. were deliberated and approved by the interim "Announcement of the interim meeting
meeting of the 7th session of the Board on 22 April 2015. resolution of the seventh board of
The Company planned to exercise equity financing by supervisors"
means of non-public offering of A-share. The total amount
"Non-public offering of A-share plan"
of non-public offering of A-share was 179,977,502 shares,
" Feasibility Analysis Report about the
112,485,939 shares of which was specifically issued to
raised fund use of Non-public offering of
Foresea Life Insurance Co., Ltd. with one billion yuan in Juchao website
A-share"
cash , and 67,491,563 shares of which was specifically (http://www.cni
"Announcement of related transactions
issued to China Northern Industries Corporation with 0.6 nfo.com.cn)
involved in non-public offering of
billion yuan in cash. Announcement
A-share" 2015-4-23
The A shares subscribed by China Northern Industries No.: 2015-019
"Indicative announcement of changes in
Corporation and Foresea Life Insurance Co., Ltd. in this 2015-020
shareholders' equity"
plan are not allowed to be transferred within 36 months 2015-021
from the listing date. "Report about the use of previous raised
2015-022
funds"
Pricing benchmark is the announcement day of board
resolution for this issue. The offering price is RMB "Valid share subscription agreement
8.89/share, no less than 90% of the average trading price of subject to conditions between the
20 trading days before pricing benchmark. Offering price Company and Foresea Life Insurance Co.,
will be adjusted if issues such as dividends, bonus shares, Ltd."
capital reserve and other ex dividend issues occurred before "Valid share subscription agreement
offering. subject to conditions between the
company and China Northern Industries
Corporation"
Proposal of adjusting period of validity for the resolution of "Announcement of the interim meeting 2015-6-16 Juchao website
32
CSG Semi-annual Report 2016
the non-public offering of A-share plan and period of resolution of the seventh board of (http://www.cni
validity which the general meeting of shareholders directors" nfo.com.cn)
authorized the Board to deal with all the specific issues "Announcement of the interim meeting Announcement
associated with the non-public offering of A-share was resolution of the seventh board of No.: 2015-033
deliberated and approved by the interim meeting of the 7th supervisors" 2015-035
Board of Directors on 15 June 2015.The Board agreed to "Report about the use and authentication
adjust period of validity for the resolution of the non-public of the previous raised funds "
offering of A-share plan and adjust period of validity which
the general meeting of shareholders authorized the Board to
deal with all the specific issues associated with the
non-public offering of A-share. The period of validity
changed to 12 months commencing from the date on which
the relevant resolution is approved at general meeting
instead of the original 18 months commencing from that
date.
Juchao website
Relevant items of the non-public offering of A-share had
"Announcement of the resolution of the (http://www.cni
been considered and approved at the first extraordinary
first extraordinary general meeting of 2015-7-3 nfo.com.cn)
general meeting of shareholders in 2015 convened by the
shareholders in 2015" Announcement
Company on 2 July 2015.
No.: 2015-038
Juchao website
"Announcement of the acceptance of
(http://www.cni
Application for non-public offering of A-share was application for non-public offering of
2015-8-18 nfo.com.cn)
accepted by China Securities Regulatory Commission A-share by China Securities Regulatory
Announcement
Commission "
No.: 2015-046
"Announcement of receipt of ‘Notice Juchao website
The Company’s non-public offering of A-share received
about review and feedback to (http://www.cni
"Notice about review and feedback to administrative 2015-11-1
administrative permissive projects from nfo.com.cn)
permissive projects from China Securities Regulatory 3
China Securities Regulatory Commission’ Announcement
Commission"
" No.: 2015-058
"Announcement of the reply to feedback
of the Company’s application documents
for non-public offering of A-share " Juchao website
"Commitment about not reducing holding (http://www.cni
Reply to feedback of the Company’s application documents shares by Foresea Life Insurance Co., 2015-12-8 nfo.com.cn)
for non-public offering of A-share Ltd." Announcement
" Commitment about not reducing holding No.: 2015-059
shares by China North Industries
Corporation"
The 13th meeting of the seventh board of directors of the "Announcement of the resolution of the Juchao website
2016-4-16
th
Company deliberated and approved the proposal of diluting 13 meeting of the seventh board of (http://www.cni
33
CSG Semi-annual Report 2016
the immediate return because of non-public offering of directors" nfo.com.cn)
shares and measures to mitigate the influence as well as the "Announcement of diluting the immediate Announcement
proposal of the directors and senior management return because of non-public offering of No.: 2016-018
personnel’s commitments about diluting the immediate shares and measures to mitigate the
return because of non-public offering of shares and influence as well as the relevant 2016-019
measures to mitigate the influence. The Company analyzed personnel’s commitments"
the impact of immediate return dilution of the non-public “Announcement of the commitments 2016-020
offering of shares, put forward the specific measures to about diluting the immediate return
mitigate the influence, and relevant personnel of the because of non-public offering of shares
Company made commitments to effectively fulfill the and measures to mitigate the influence
measures for filling in return. which were made by the relevant
personnel of CSG Holding Co., Ltd.”
By 2 July 2016, the Company had not obtained the written Juchao website
authorization from the CSRC for this non-public offering “ Announcement of the non-public (http://www.cni
plan. According to relevant requirements of the CSRC and Offering of A-share plan declared invalid 2016-7-4 nfo.com.cn)
Shenzhen Stock Exchange, this non-public offering plan due to expiration” Announcement
became invalid automatically. No.: 2016-030
2. Short-term Financing Bills
On 23 April 2013, annual general meeting of 2012 of CSG Holding Co., Ltd deliberated and approved the proposal of short-term
financing 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 Financial
market 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 Limited
and Agricultural Bank of China Co., Ltd were joint lead underwriters of these short-term financing bills, which could be issued by
stages within the validity period of registration. On 14 March 2014, the Company issued short-term financing bills with a total
amount of RMB 0.5 billion and deadline of one year, which was redeemed on 14 March 2015. On 22 April 2015, the Company
issued 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 rate
of 4.28%, and the expiry date is 23 April 2016. On 16-17 September 2015, the Company issued the 2nd batch of short-term financing
bills 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 17
September 2016.
For details, please refer to www.chinabond.com.cn and www.chinamoney.com.cn.
3. 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 4
billion 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., Shanghai
Pudong 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 the
registration. On 12 June 2015, the Company issued the first batch of ultra-short-term financing bills for the year of 2015 with total
34
CSG Semi-annual Report 2016
amount 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 13
October 2015, the Company issued the second batch of ultra-short-term financing bills for the year of 2015 with total amount of
RMB 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 March
2016, the Company issued the first batch of ultra-short-term financing bills for the year of 2016 with total amount of RMB 0.8 billion
and valid term of 270 days at the issuance rate of 3.15%, which will be redeemed on 6 December 2016. On 17 May 2016, the
Company issued the second batch of ultra-short-term financing bills for the year of 2016 with total amount of RMB 0.9 billion and
valid term of 270 days at the issuance rate of 4.18%, which will be redeemed on 10 February 2017. On 2 August 2016, the Company
issued 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 of
270 days at the issuance rate of 3.67%, which will be redeemed on 1 May 2017.
For details, please refer to www.chinabond.com.cn and www.chinamoney.com.cn.
4. Perpetual bonds
On 23 March 2016, the 12th meeting of the seventh board of directors of CSG Holding Co., Ltd. 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 several times within the validity period of registration
according to the Company’s actual demand for funds and the capital status of inter-bank market. Details can be found in
"Announcement of the resolution of the 12th meeting of the seventh board of directors", the announcement number of which is
2016-009. The above proposal was deliberated and approved by 2015 annual general meeting of shareholders held on April 15, 2016.
5. 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 at
most. 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 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 lead
underwriters of these medium term notes which could be issued by stages within within period of validity of the registration.
On 10 July 2015, the Company issued the first batch of medium term notes with total amount of RMB 1.2 billion and valid term of 5
years at the issuance rate of 4.94%, which will be redeemed on 14 July 2020.
For details, please refer to www.chinabond.com.cn and www.chinamoney.com.cn.
On 23 March 2016, the 12th meeting of the seventh board of directors of CSG Holding Co., Ltd. deliberated and approved the
proposal of application for registration and issuance of medium-term notes, and agreed the Company to register and issue
medium-term notes with total amount of RMB 0.8 billion which could be issued by several times within the validity period of
registration according to the Company’s actual demand for funds and the capital status of inter-bank market. Details can be found in
"Announcement of the resolution of the 12th meeting of the seventh board of directors", the announcement number of which is
2016-009. The above proposal was deliberated and approved by 2015 annual general meeting of shareholders held on April 15, 2016.
XV. Issuance of corporate bonds
Whether the Company has corporate bonds publicly listed in Stock Exchange which are not matured or haven’t completed the
payment till the day when the semi-annual report is approved and announced or not
Yes
35
CSG Semi-annual Report 2016
1. The basic information of corporate bonds
Short Bond Maturity Bond balance Interest Way of repayment of principal and
Name Issue date
name code date (RMB 0,000) rate interest
Using simple interest year - on - year,
non - compound interest, the interest is
Corporate bond 10 CSG
112022 2010-10-20 2017-10-20 100,000 5.33% paid once a year and the principal is paid
in 2010 of CSG 02
at a time once due, and the final interest
is paid together with the principal.
Corporate bond listing or transfer trading place Shenzhen Stock Exchange
Corporate bond "10 CSG 02" establishes the sell-back option for
investors, and its bondholders have the right to sell back all or part of their
bonds at par to the issuer on October 20, 2015. In accordance with the
bond sell-back declaration data provided by China Securities Depository
Appropriate arrangements for investors
and Clearing Corporation Limited Shenzhen Branch, the effective
sell-back declaration quantity of corporate bond "10 CSG 02" of this time
was 0, the sell-back amount was RMB 0, the remaining hosting amount
was 10,000,000 pieces.
Interest payment and encashment of corporate bonds
Nil
during the reporting period
Implementation of the special provisions including
option and exchangeable terms of issuers or investors
N/A
attached to corporate bonds and the relevant provisions
during the reporting period (if applicable)
2. Informantion of bond trustee and credit rating institution
Bond trustee:
China Merchants 38-45 floor, Ablock, Jiangsu Building, Contact Nie
Name Office adds. Tel. 0755-82960984
Securities Co., Ltd. Yitian Road, Futian District, Shenzhen person Dongyun
Credit rating institution which tracks rating corporate bonds in the report period:
Name CCXR Office 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 Not
of the change, performance of the procedure, and the impact on the interest of investors etc. (if applicable) applicable
3. The use of fund raised by corporate bonds
The use of fund raised by corporate bonds and performance of
The raised fund is in strict accordance with the relevant provisions.
the procedure
Balance at the end of year 0
36
CSG Semi-annual Report 2016
The operation of the special account for raised fund is strictly
The operation of the special account for raised fund accordance with the relevant provisions of prospectus
commitment.
Whether the use of raised fund is consistent with the purpose,
Consistent
plan of use and other agreements of prospectus commitment
4. Information of the rating of corporation bonds
According to CCXR’ track rating in 2016, 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 +.
5. Trust mechanism, debt repayment plans and other debt repayment safeguards of corporation bonds
During the report period, the trust mechanism, debt repayment plans and other debt repayment safeguards have not been changed
which are the same as the relevant commitments of raising instruction manual, the relevant implementations are as follows:
I. Debt repayment plan
The Company established the annual and monthly plan for application of funds based on the payment arrangement for coming due
principal and interest of the corporation bonds, reasonably managed and allocated the funds so as to make sure the due principal and
interest 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.
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 and
sufficient 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 information
disclosure 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 Approach
for the Issuance of Corporation Bonds", appointed the range, procedures and other important matters for bondholders to exercise
rights by bondholders' meeting and made reasonable institutional arrangements to ensure the principal and interest of the corporation
bonds be paid timely and sufficiently.
(II) Engage bond trustee
The 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 repayment
The Company used the funds raised from the bond strictly in accordance with the "Financial Management System" and "Financial
Funds Management Approach". The Company has appointed the financial department to take the lead and take charge of the
repayment of corporation bonds, implement and arrange the repayment funds for principal and interest of corporation bonds in the
annual financial budget so as to ensure the principal and interest be paid on time and guarantee the interests of bondholders. Within
15 working days before the annual interest pay day and annual principal pay day of corporation bonds, the Company specially
37
CSG Semi-annual Report 2016
establishes a working group of which the members are composed of personnel from the company's financial management department
to take charge of the repayment of interests and other relevant work. The Company guarantees the funds for payment of interest will
be sent to the special repayment account three days before the annual interest payment and the funds for cashing principle will be
sent to the special repayment account one week before the due date of corporation bonds, the special repayment account will pay
both the principle and interest.
(IV) Improve profitability, strengthen funds management, and optimize debt structure
The 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 to
improve the Company 's return on assets; the Company also will continue to strengthen the management of accounts receivable and
inventory so as to improve accounts receivable turnover and inventory turnover, and thereby enhance the Company 's ability to
obtain 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 repayment
risk.
(VI) Other safeguards
When the Company cannot pay interest and principal on time or has other breach of contracts, the Company will at least take
following measures:
1. Do not distribute profits to shareholders.
2. Postpone the implementation of capital expenditure projects such as major foreign investment, mergers and acquisitions.
6. Information about the bond-holder meeting during the reporting period
There was no bond-holder meeting convened in the report period.
7. 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 Merchants
Securities Co., Ltd. at Juchao website (http//www.cninfo.com.cn) on April 20, 2016, to which investors are welcomed to refer.
The Company disclosed the " Major issues of 2010 Corporate Bonds Trusteeship Transaction Interim Report" prepared by China
Merchants Securities Co., Ltd. at Juchao website (http//www.cninfo.com.cn) on June 29, 2016, to which investors are welcomed to
refer.
8. The key accounting data and financial indicators for the end of the report period and the end of last year
(or the report period and the same period of last year)
Item The end of the report period The end of last year Increase/decrease (%)
Flow rate 38% 43% -5%
38
CSG Semi-annual Report 2016
Assets liabilities rate 53% 49% 4%
Speed ratio 31% 36% -5%
The report period The same period of last year Increase/decrease (%)
Interest coverage ratio of EBITDA 8.61 5.98 43.98%
Loan repayment rate 100% 100% 0%
Interest coverage ratio 100% 100% 0%
The main reason for the above main accounting data and financial indicators changed more than 30% y-o-y
√Applicable □ Not applicable
Interest coverage ratio of EBITDA increased mainly because profit for the period increased on a year-on-year basis.
9. Information about the restricted asset right by the end of the report period
Item The restricted amount Reason for restriction
The Company’s guarantee deposit for the application of opening letter of credit and
Monetary fund RMB 5,446,558
loan from the bank.
10. Debts fail to be repaid
□Applicable √Not applicable
No debts failed to be repaid.
11. Payment of principle and interest for other bonds and debt financing instruments during the report
period
Short-term financing bills
On April 23, 2016, the Company completed the repayment of the short- term financing bills with total amount of RMB 0.6 billion
and valid term of one year at the issuance rate of 4.28%, which issued on April 22, 2015.
On March 11, 2016, the Company completed the repayment of the ultra-short-term financing bills with total amount of RMB 0.8
billion and valid term of 270 days at the issuance rate of 4.25%, which issued on June 12, 2015.
On July 11, 2016, the Company completed the repayment of the ultra-short-term financing bills with total amount of RMB 1.1 billion
and valid term of 270 days at the issuance rate of 3.81%, which issued on October 13, 2015.
12. Information about of bank credit and use, as well as repayment of bank loans during the report period
In the report period, the Company gained bank credit of RMB 2,907.52 million and use quota of RMB 1,406.85 million and repaid
loans of RMB 3,988.40 million.
13. Information about fulfillment of the stipulations or commitments specified in the Prospectus of the
issuance of the bonds during the report period
Nil
39
CSG Semi-annual Report 2016
14. Significant event occurring during the report period
Nil
15. Whether there is a guarantor of corporate bonds
□ Yes √ No
40
CSG Semi-annual Report 2016
Section VI. Changes in Shares and Particulars about Shareholders
I. Changes in Share Capital
Unit: Share
Before the Change Increase/Decrease in the Change (+, -) After the Change
Capitalizat
Proportion New shares Bonus ion of Proportion
Amount Others Subtotal Amount
(%) issued shares public (%)
reserve
I. Restricted shares 8,679,666 0.42% 85,500 85,500 8,765,166 0.42%
1. State-owned shares 0 0%
2. State-owned legal person’s
shares 0 0%
3. Other domestic shares 8,679,666 0.42% 85,500 85,500 8,765,166 0.42%
Including: Domestic legal
0 0%
person’s shares
Domestic natural person’s
8,679,666 0.42% 85,500 85,500 8,765,166 0.42%
shares
4. Foreign shares 0 0%
Including: Foreign legal
0 0%
person’s shares
Foreign natural person’s
0 0%
shares
II. Unrestricted shares 2,066,655,894 99.58% -85,500 -85,500 2,066,570,394 99.58%
1. RMB Ordinary shares 1,304,071,902 62.84% 1,304,071,902 62.84%
2. Domestically listed foreign
shares 762,583,992 36.75% -85,500 -85,500 762,498,492 36.74%
3. Overseas listed foreign
shares 0 0%
4. Others 0 0%
III.Total shares 2,075,335,560 100% 2,075,335,560 100%
Reasons for share changed
√ Applicable □ Not applicable
Appointment for senior executive
Approval of share changed
√ Applicable □ Not applicable
On 20 May 2016, the proposal of appointment for senior executive was deliberated and approved by the interim meeting of the 7th
Board of Directors of the Company, and Mr. Zhang Bozhong was appointed as Vice President of the Company, thus 75% shares
(85,500 shares) held by Mr. Zhang were included in executive 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 common
41
CSG Semi-annual Report 2016
shareholders 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
Explanation on changes in aspects of total shares, shareholder structure, assets and liability structure of the Company
□Applicable √ Not applicable
II. Amount of shareholders of the Company and particulars about shareholding
Unit: Share
Total preference shareholders with voting rights
Total shareholders at the end of the report period 139,047 Nil
recovered at end of the report period (if applicable)
Shareholder with above 5% shares hold or top 10 shareholders
Full name of Shareholders Nature of Proportion Total shares Changes in Amount of Amount of Number of share
shareholder of shares held at the report period restricted un-restricted pledged/frozen
held (%) end of report shares shares held
Share Amount
period held
status
Domestic non
Foresea Life Insurance Co., Ltd.
state-owned 21.78% 452,021,277 94,642,217 452,021,277
– Haili Niannian
legal person
China Northern Industries State-owned
3.62% 75,167,934 0 75,167,934
Corporation legal person
Domestic non
Shenzhen Jushenghua Co., Ltd. state-owned 2.87% 59,552,120 0 59,552,120
legal person
State-owned
Central Huijin Investment Ltd. 1.92% 39,811,300 0 39,811,300
legal person
Domestic non
Shenzhen International
state-owned 1.78% 37,040,200 0 37,040,200
Holdings (Shenzhen) Co., Ltd.
legal person
China Galaxy International Foreign legal
1.38% 28,692,212 -380,400 28,692,212
Securities (H.K.) Co., Ltd. person
China Merchants Securities State-owned
1.36% 28,305,848 18,624,797 28,305,848
(Hongkong) Co., Ltd. legal person
Domestic non
China Securities Finance
state-owned 1.27% 26,357,447 0 26,357,447
Corporation
legal person
Xintongchan Industrial Domestic non
0.70% 14,459,899 0 14,459,899
Development (Shenzhen) Co., state-owned
42
CSG Semi-annual Report 2016
Ltd. legal person
BBH A/C VANGUARD
Foreign legal
EMERGING MARKETS 0.64% 13,280,792 0 13,280,792
person
STOCK INDEX FUND
Strategic investors or general legal N/A
person becomes top 10 shareholders due
to shares issued (if applicable)
Explanation on associated relationship Among shareholders as listed above, Shenzhen Jushenghua Co., Ltd. is a related legal
among the aforesaid shareholders 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 (H.K.) Co., Ltd.
Shenzhen International Holdings (Shenzhen) Co., Ltd. and Xintongchan Industrial
Development (Shenzhen) Co., Ltd. are holding enterprises and belong to controlling
enterprise of Shenzhen International Holdings Co., Ltd.
Except for the above-mentioned shareholders, It is unknown whether other shareholders
belong to related party or have associated relationship regulated by the Management
Regulation of Information Disclosure on Change of Shareholding for Listed Companies.
Particular about top ten shareholders with un-restrict shares held
Shareholders’ name Amount of un-restrict Type of shares
shares held at year-end
Type Amount
Foresea Life Insurance Co., Ltd. – Haili Niannian 452,021,277 RMB ordinary shares 452,021,277
China Northern Industries Corporation 75,167,934 RMB ordinary shares 75,167,934
Shenzhen Jushenghua Co., Ltd. 59,552,120 RMB ordinary shares 59,552,120
Central Huijin Investment Ltd. 39,811,300 RMB ordinary shares 39,811,300
Shenzhen International Holdings (Shenzhen) Co., Ltd. 37,040,200 RMB ordinary shares 37,040,200
China Galaxy International Securities (H.K.) Co., Ltd. 28,692,212 Domestically listed foreign shares 28,692,212
China Merchants Securities (Hongkong) Co., Ltd. 28,305,848 Domestically listed foreign shares 28,305,848
China Securities Finance Corporation 26,357,447 RMB ordinary shares 26,357,447
Xintongchan Industrial Development (Shenzhen) Co., RMB ordinary shares
14,459,899 14,459,899
Ltd.
BBH A/C VANGUARD EMERGING MARKETS
13,280,792 RMB ordinary shares 13,280,792
STOCK INDEX FUND
Among shareholders as listed above, Shenzhen Jushenghua Co., Ltd. is a related legal
person of Foresea Life Insurance Co., Ltd. and Chengtai Group Co., Ltd., another related
Statement on associated relationship or
legal person of Foresea Life Insurance Co., Ltd, which held 27,625,299 shares via China
consistent action among the above
Galaxy International Securities (H.K.) Co., Ltd.
shareholders:
Shenzhen International Holdings (Shenzhen) Co., Ltd. and Xintongchan Industrial
Development (Shenzhen) Co., Ltd. are holding enterprises and belong to controlling
43
CSG Semi-annual Report 2016
enterprise of Shenzhen International Holdings Co., Ltd.
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 As of 30 June 2016, the Company’s shareholder, Shenzhen Jushenghua Co., Ltd., held
margin business (if applicable) 59,552,120 shares in total with 0 share in its general account and 59,552,120 shares via the
client credit trading guarantee account of China Galaxy Securities Co., Ltd.
59,552,120 shares of Shenzhen Jushenghua Co., Ltd. which were held via the credit
securities account by margin trading mode were directly returned to its general account on
12 July 2016.
Buy back deals carried out by the shareholders in the report period
□Yes √ No
There were no buy back deals carried out by the shareholders in the report period.
III. Changes of controlling shareholder or actual controller
Changes of controlling shareholder in the report period
□Applicable √ Not applicable
There was no change of controlling shareholder in the report period.
Changes of actual controller in the report period
□Applicable √ Not applicable
There was no change of actual controller in the report period.
IV. Particulars about shareholding increase scheme proposed or implemented in the report
period by shareholder of the Company and its concerted action person
□ Applicable √Not applicable
As far as the Company knows, no shareholder of the Company or its concerted action person proposed or implemented any
shareholding increase scheme in the report period.
44
CSG Semi-annual Report 2016
Section VII. Particulars about Directors, Supervisors and Senior
Executives
I. Changes of shares held by directors, supervisors and senior executives
□Applicable √ Not applicable
There were no changes of shares held by directors, supervisors and senior executives in the report period. Details can be found in
Annual Report 2015.
II. Changes of the directors, supervisors and senior executives
√ Applicable□ Not applicable
Name Title Type Date Reasons
Chen Lin Director Be elected 2016-1-21 By-election of directors
Wang Jian Director Be elected 2016-1-21 By-election of directors
Ye Weiqing Director Be elected 2016-1-21 By-election of directors
Cheng Xibao Director Be elected 2016-1-21 By-election of directors
Due to the need of business development, the Board of
Hu Yong Vice President appointment 2016-3-23 Directors approved to appoint Mr. Hu Yong as Vice
President of the Company.
Due to the need of business development, the Board of
Zhang Bozhong Vice President appointment 2016-5-20 Directors approved to appoint Mr. Hu Yong as Vice
President of the Company.
45
CSG Semi-annual Report 2016
Section VIII. 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
Item Ending balance Beginning balance
Current asset:
Monetary capital 410,156,713 578,834,520
Settlement provision
Outgoing call loan
Financial assets measured at fair value with variations
accounted into current income account
Derivative financial assets
Notes receivable 373,907,457 453,546,538
Account receivable 570,549,510 452,961,612
Prepayment 148,891,272 109,841,295
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance contracts receivable
Interest receivable
Dividend receivable
Other account receivable 208,558,646 116,224,370
Repurchasing of financial assets
Inventories 412,025,146 350,425,732
Assets held for sales
Non-current asset due in 1 year
Other current asset 209,932,151 118,359,117
46
CSG Semi-annual Report 2016
Total of current asset 2,334,020,895 2,180,193,184
Non-current assets
Loans and payment on other’s behalf disbursed
Available-for-sale financial asset
Expired investment in possess
Long-term receivable 50,104,299
Long-term share equity investment 668,210,253
Investment real estates
Fixed assets 11,504,543,244 10,199,674,929
Construction in process 1,090,294,600 1,339,340,780
Engineering goods
Fixed asset disposal
Production physical assets
Gas & petrol
Intangible assets 1,076,270,201 846,238,811
R&D expense 44,864,564 26,280,426
Goodwill 722,389,281 3,039,946
Long-term amortizable expenses 1,281,448 1,597,865
Differed income tax asset 103,666,023 110,336,216
Other non-current asset 97,891,154 64,583,451
Total of non-current assets 14,641,200,515 13,309,406,976
Total of assets 16,975,221,410 15,489,600,160
Current liabilities
Short-term loans 4,034,851,007 3,216,326,670
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 payable 6,014,869 8,000,000
Account payable 1,136,684,714 915,266,051
Prepayment received 148,319,760 117,434,636
Selling of repurchased financial assets
47
CSG Semi-annual Report 2016
Fees and commissions receivable
Employees’ wage payable 140,222,521 170,539,613
Tax payable 92,920,852 119,826,177
Interest payable 152,327,588 89,363,806
Dividend payable
Other account payable 204,741,291 143,021,055
Reinsurance fee payable
Insurance contract provision
Entrusted trading of securities
Entrusted selling of securities
Liabilities held for sales
Non-current liability due in 1 year 217,500,000 239,000,000
Other current liability 300,000 300,000
Total of current liability 6,133,882,602 5,019,078,008
Non-current liabilities
Long-term borrowings 1,402,000,000 1,200,000,000
Bond payable 1,000,000,000 1,000,000,000
Including：preferred stock
Sustainable debt
Long-term payable
Long-term payable employees’s remuneration
Special payable
Anticipated liabilities
Differed income 438,566,480 383,599,103
Differed income tax liability 20,338,456 9,531,572
Other non-recurring liabilities
Total of non-current liabilities 2,860,904,936 2,593,130,675
Total of liability 8,994,787,538 7,612,208,683
Owners’ equity
Share capital 2,075,335,560 2,075,335,560
Other equity instruments
Including：preferred stock
Sustainable debt
Capital reserves 1,260,481,460 1,261,391,272
48
CSG Semi-annual Report 2016
Less: Shares in stock
Other comprehensive income 3,475,825 2,967,772
Special reserves 13,766,216 15,437,498
Surplus reserves 881,972,330 881,972,330
Common risk provision
Undistributed profit 3,481,489,151 3,637,206,565
Total of owner’s equity belong to the parent company 7,716,520,542 7,874,310,997
Minor shareholders’ equity 263,913,330 3,080,480
Total of owners’ equity 7,980,433,872 7,877,391,477
Total of liability and owners’ equity 16,975,221,410 15,489,600,160
Legal Representative：Zeng Nan CFO：Luo Youming Manager of the financial department：Ding Jiuru
2. Balance Sheet of the Parent Company
Unit: RMB
Item Ending balance Beginning balance
Current asset:
Monetary capital 206,437,888 395,798,393
Financial assets measured at fair value with variations
accounted into current income account
Derivative financial assets
Notes receivable
Account receivable
Prepayment 492,191
Interest receivable
Dividend receivable
Other account receivable 3,918,265,469 4,283,715,036
Inventories
Assets held for sales
Non-current asset due in 1 year
Other current asset
Total of current asset 4,124,703,357 4,680,005,620
Non-current assets
Available-for-sale financial asset
Expired investment in possess
49
CSG Semi-annual Report 2016
Long-term receivable 2,169,115,620 2,139,873,923
Long-term share equity investment 4,988,091,791 4,337,777,738
Investment real estates
Fixed assets 28,022,552 30,806,106
Construction in process
Engineering goods
Fixed asset disposal
Production physical assets
Gas & petrol
Intangible assets 1,540,137 1,762,037
R&D expense
Goodwill
Long-term amortizable expenses 447,120 894,241
Differed income tax asset
Other non-current asset 703,650
Total of non-current assets 7,187,920,870 6,511,114,045
Total of assets 11,312,624,227 11,191,119,665
Current liabilities
Short-term loans 3,500,000,000 2,900,000,000
Financial liabilities measured at fair value with variations
accounted into
Derivative financial liabilities
Notes payable
Account payable 211,459
Prepayment received
Employees’ wage payable 28,500,020 38,240,000
Tax payable 3,632,755 39,469,245
Interest payable 50,063,286 79,906,647
Dividend payable
Other account payable 280,417,253 295,421,165
Liabilities held for sales
Non-current liability due in 1 year 141,000,000 239,000,000
Other current liability
Total of current liability 4,003,824,773 3,592,037,057
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CSG Semi-annual Report 2016
Non-current liabilities
Long-term borrowings 1,200,000,000 1,200,000,000
Bond payable 1,000,000,000 1,000,000,000
Including：preferred stock
Sustainable debt
Long-term payable
Long-term payable employees’s remuneration
Special payable
Anticipated liabilities
Differed income 12,789,420 10,543,800
Differed income tax liability
Other non-recurring liabilities
Total of non-current liabilities 2,212,789,420 2,210,543,800
Total of liability 6,216,614,193 5,802,580,857
Owners’ equity
Share capital 2,075,335,560 2,075,335,560
Other equity instruments
Including：preferred stock
Sustainable debt
Capital reserves 1,405,166,459 1,404,803,407
Less: Shares in stock
Other comprehensive income
Special reserves
Surplus reserves 896,517,690 896,517,690
Undistributed profit 718,990,325 1,011,882,151
Total of owners’ equity 5,096,010,034 5,388,538,808
Total of liability and owners’ equity 11,312,624,227 11,191,119,665
3. Consolidated Income Statement
Unit: RMB
Item Balance of this period Balance of last period
I. Total revenue 4,228,165,642 3,323,039,502
Incl. Business income 4,228,165,642 3,323,039,502
Interest income
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CSG Semi-annual Report 2016
Insurance fee earned
Fee and commission received
II. Total business cost 3,720,133,533 3,214,501,324
Incl. Business cost 3,076,818,503 2,646,020,710
Interest expense
Fee and commission paid
Insurance discharge payment
Net claim amount paid
Net insurance policy reserves provided
Insurance policy dividend paid
Reinsurance expenses
Business tax and surcharge 23,384,672 12,148,234
Sales expense 128,564,831 136,462,518
Administrative expense 358,937,506 282,368,089
Financial expenses 133,353,393 132,742,464
Asset impairment loss -925,372 4,759,309
Plus: gains from change of fair value (“-“for loss)
Investment gains (“-“ for loss) -14,264,359 42,454,450
Incl. Investment gains from affiliates -14,264,359 -14,452,010
Exchange gains (“-“ for loss)
III. Operational profit (“-“ for loss) 493,767,750 150,992,628
Plus: non-operational income 50,038,364 76,155,971
Incl. Income from disposal of non-current assets 248,642 2,675,438
Less: non-operational expenditure 661,628 25,532
Incl. Loss from disposal of non-current assets 19,984 18,755
IV. Gross profit (“-“ for loss) 543,144,486 227,123,067
Less: Income tax expenses 77,843,164 6,526,647
V. Net profit (“-“ for net loss) 465,301,322 220,596,420
Net profit attributable to the owners of parent company 466,883,254 205,767,344
Minor shareholders’ equity -1,581,932 14,829,076
VI. Net amount of other gains after tax 508,053 80,050,980
Net amount of other gains after tax attributable to owners
508,053 80,221,527
of parent company
(I) Other comprehensive income that will not be
52
CSG Semi-annual Report 2016
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 508,053 80,221,527
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
80,536,743
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 508,053 -315,216
6.Other
Net of profit of other comprehensive income attributable
-170,547
to Minority shareholders’ equity
VII. Total of misc. incomes 465,809,375 300,647,400
Total of misc. incomes attributable to the owners of the
467,391,307 285,988,871
parent company
Total misc gains attributable to the minor shareholders -1,581,932 14,658,529
VIII. Earnings per share:
(I) Basic earnings per share 0.22 0.10
(II) Diluted earnings per share 0.22 0.10
Legal Representative：Zeng Nan CFO：Luo Youming Manager of the financial department：Ding Jiuru
4. Income Statement of the Parent Co.
Unit: RMB
Items Balance of this period Balance of last period
I. Revenue 1,077,394 0
Less:business cost 60,334 0
Business tax and surcharge
53
CSG Semi-annual Report 2016
Sales expense
Administrative expense 61,907,277 17,964,162
Financial expenses 11,263,822 71,363,481
Asset impairment loss -1,770,242 7,044
Plus: gains from change of fair value (“-“for loss)
Investment gains (“-“ for loss) 399,280,607 536,119,358
Incl. Investment gains from affiliates 9,850,045 -14,452,010
II. Operational profit (“-“ for loss) 328,896,810 446,784,671
Plus: non-operational income 766,180 22,234,014
Incl. Income from disposal of non-current assets 1,800 450
Less: non-operational expenditure
Incl. Loss from disposal of non-current assets
III. Gross profit (“-“ for loss) 329,662,990 469,018,685
Less: Income tax expenses -45,852 -20,048,352
IV. Net profit (“-“ for net loss) 329,708,842 489,067,037
V. Net amount of other gains after tax 79,790,488
(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 79,790,488
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
79,790,488
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
54
CSG Semi-annual Report 2016
VI. Total of misc. incomes 329,708,842 568,857,525
VII. Earnings per share:
(I) Basic earnings per share
(II) Diluted earnings per share
5. Consolidated Cash Flow Statement
Unit: RMB
Item Balance of this period Balance of last period
I. Net cash flow from business operation
Cash received from sales of products and providing of
4,822,965,397 3,678,762,331
services
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 returned 35,363,638 22,976,079
Other cash received from business operation 46,108,936 36,428,636
Sub-total of cash inflow from business activities 4,904,437,971 3,738,167,046
Cash paid for purchasing of merchandise and services 2,769,544,694 2,463,302,682
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
55
CSG Semi-annual Report 2016
Cash paid to staffs or paid for staffs 529,127,685 448,537,986
Taxes paid 336,130,323 243,006,911
Other cash paid for business activities 222,914,920 230,755,647
Sub-total of cash outflow from business activities 3,857,717,622 3,385,603,226
Cash flow generated by business operation, net 1,046,720,349 352,563,820
II. Cash flow generated by investing
Cash received from investment retrieving 153,447,723
Cash received as investment profit 75,777,221
Net cash retrieved from disposal of fixed assets,
617,985 2,758,651
intangible assets, and other long-term assets
Net cash received from disposal of subsidiaries or other
-14,631,399
operational units
Other investment-related cash received 29,699,884 9,799,515
Sub-total of cash inflow due to investment activities 30,317,869 227,151,711
Cash paid for construction of fixed assets, intangible
472,503,623 534,162,825
assets and other long-term assets
Cash paid as investment 4,250,000 208,540,307
Net increase of loan against pledge
Net cash received from subsidiaries and other operational
507,974,099
units
Other cash paid for investment activities 21,764,586 4,209,881
Sub-total of cash outflow due to investment activities 1,006,492,308 746,913,013
Net cash flow generated by investment -976,174,439 -519,761,302
III. Cash flow generated by financing
Cash received as investment 5,500,000
Incl. Cash received as investment from minor
5,500,000
shareholders
Cash received as loans 4,443,422,252 3,793,199,608
Cash received from bond placing
Other financing-related cash received 100,725,978 19,650,025
Subtotal of cash inflow from financing activities 4,549,648,230 3,812,849,633
Cash to repay debts 3,988,397,915 2,425,458,345
Cash paid as dividend, profit, or interests 693,264,874 1,190,310,895
Incl. Dividend and profit paid by subsidiaries to minor
41,417,660
shareholders
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CSG Semi-annual Report 2016
Other cash paid for financing activities 109,125,965 2,158,619
Subtotal of cash outflow due to financing activities 4,790,788,754 3,617,927,859
Net cash flow generated by financing -241,140,524 194,921,774
IV. Influence of exchange rate alternation on cash and
559,892 -1,042,904
cash equivalents
V. Net increase of cash and cash equivalents -170,034,722 26,681,388
Plus: Balance of cash and cash equivalents at the
574,744,877 156,838,260
beginning of term
VI. Balance of cash and cash equivalents at the end of
404,710,155 183,519,648
term
6. Cash Flow Statement of the Parent Co.
Unit: RMB
Item Balance of this period Balance of last period
I. Net cash flow from business operation
Cash received from sales of products and providing of
services
Tax returned
Other cash received from business operation 2,616,039 1,758,593
Sub-total of cash inflow from business activities 2,616,039 1,758,593
Cash paid for purchasing of merchandise and services
Cash paid to staffs or paid for staffs 62,007,982 50,046,583
Taxes paid 39,306,033 198,269
Other cash paid for business activities 6,551,752 6,450,318
Sub-total of cash outflow from business activities 107,865,767 56,695,170
Cash flow generated by business operation, net -105,249,728 -54,936,577
II. Cash flow generated by investing
Cash received from investment retrieving 145,377,279
Cash received as investment profit 389,430,562 571,159,803
Net cash retrieved from disposal of fixed assets,
1,800 450
intangible assets, and other long-term assets
Net cash received from disposal of subsidiaries or other
1,271,535
operational units
Other investment-related cash received 3,000,000
Sub-total of cash inflow due to investment activities 392,432,362 717,809,067
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CSG Semi-annual Report 2016
Cash paid for construction of fixed assets, intangible
117,326 637,788
assets and other long-term assets
Cash paid as investment 175,755,000 45,791,650
Net cash received from subsidiaries and other operational
464,345,956
units
Other cash paid for investment activities 4,229,882
Sub-total of cash outflow due to investment activities 640,218,282 50,659,320
Net cash flow generated by investment -247,785,920 667,149,747
III. Cash flow generated by financing
Cash received as investment
Cash received as loans 4,110,000,600 3,455,447,602
Cash received from bond placing
Other financing-related cash received 326,432,420
Subtotal of cash inflow from financing activities 4,436,433,020 3,455,447,602
Cash to repay debts 3,608,000,600 2,211,297,402
Cash paid as dividend, profit, or interests 662,199,041 1,119,056,925
Other cash paid for financing activities 736,881,547
Subtotal of cash outflow due to financing activities 4,270,199,641 4,067,235,874
Net cash flow generated by financing 166,233,379 -611,788,272
IV. Influence of exchange rate alternation on cash and
-2,568,311 -5,614,641
cash equivalents
V. Net increase of cash and cash equivalents -189,370,580 -5,189,743
Plus: Balance of cash and cash equivalents at the
394,606,753 67,898,286
beginning of term
VI. Balance of cash and cash equivalents at the end of
205,236,173 62,708,543
term
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CSG Semi-annual Report 2016
7. Statement of Change in Owners’ Equity (Consolidated)
Prepared by CSG Holding Co., Ltd.
Amount of the Current Term
RMB
Amount of the Current Term
Owners’ Equity Attributable to the Parent Company
Other equity instruments Minority
Items Other shareholders’ Total of owners’
Perpetua Less: Common
Capital Special Surplus Retained
Share capital Preferre l capital treasury comprehensi risk Total of equity
Others reserve reserves reserves profit
securitie stock ve income provision owners’ equity
d share
s
I. Balance at the end
of the previous 2,075,335,560 1,261,391,272 2,967,772 15,437,498 881,972,330 3,637,206,565 3,080,480 7,877,391,477
year
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 2,075,335,560 1,261,391,272 2,967,772 15,437,498 881,972,330 3,637,206,565 3,080,480 7,877,391,477
year
III. Amount of change
-909,812 508,053 -1,671,282 -155,717,414 260,832,850 103,042,395
in current term
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CSG Semi-annual Report 2016
(“-“ for decrease)
(I) Total amount of the
comprehensive 508,053 466,883,254 -1,581,932 465,809,375
income
(II) Capital paid in and
5,500,000 5,500,000
reduced by owners
1. Common shares
invested by the 5,500,000 5,500,000
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 distribution -622,600,668 -622,600,668
1. Appropriations to
surplus reserves
2. Appropriations to
general risk
provisions
3. Appropriations to
owners (or -622,600,668 -622,600,668
shareholders)
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CSG Semi-annual Report 2016
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 -1,671,282 -1,671,282
1. Withdrawn for the
3,465,325 3,465,325
period
2. Used in the period 5,136,607 5,136,607
(VI) Others -909,812 256,914,782 256,004,970
IV. Balance at the end
of this term 2,075,335,560 1,260,481,460 3,475,825 13,766,216 881,972,330 3,481,489,151 263,913,330 7,980,433,872
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CSG Semi-annual Report 2016
Amount of Last Year
Unit: RMB
Amount of the same period of last year
Owners’ Equity Attributable to the Parent Company
Minority
Other equity instruments Commo
Items Other shareholders’ Total of owners’
Less:
Preferr Perpetual Capital Special Surplus n risk
Share capital treasury comprehensi Retained profit Total of equity
ed capital Others reserve reserves reserves provisio
stock ve income owners’ equity
share securities n
I. Balance at the end
of the previous 2,075,335,560 1,340,090,907 -13,521,093 14,562,826 830,772,731 4,101,320,834 304,886,385 8,653,448,150
year
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 2,075,335,560 1,340,090,907 -13,521,093 14,562,826 830,772,731 4,101,320,834 304,886,385 8,653,448,150
year
III. Amount of change
in current term -79,132,773 80,221,527 237,949 -831,900,436 -245,521,369 -1,076,095,102
(“-“ for decrease)
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CSG Semi-annual Report 2016
(I) Total amount of the
comprehensive 80,221,527 205,767,344 14,658,529 300,647,400
income
(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 distribution -1,037,667,780 -41,417,660 -1,079,085,440
1. Appropriations to
surplus reserves
2. Appropriations to
general risk
provisions
3. Appropriations to
owners (or -1,037,667,780 -41,417,660 -1,079,085,440
shareholders)
4. Others
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CSG Semi-annual Report 2016
(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 237,949 237,949
1. Withdrawn for the
2,691,116 2,691,116
period
2. Used in the period 2,453,167 2,453,167
(VI) Others -79,132,773 -218,762,238 -297,895,011
IV. Balance at the end
of this term 2,075,335,560 1,260,958,134 66,700,434 14,800,775 830,772,731 3,269,420,398 59,365,016 7,577,353,048
8. Statement of Change in Owners’ Equity (Parent Co.)
Amount of the Current Term
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CSG Semi-annual Report 2016
Unit: RMB
Amount of the Current Term
Other equity instruments
Less: Other
Items Capital Special Surplus Retained Total of owners’
Perpetual
Share capital Preferred treasury comprehensive
capital Others reserve reserves reserves profit equity
share stock income
securities
I. Balance at the end of the previous 2,075,335,560 1,404,803,407 896,517,690 1,011,882,151 5,388,538,808
Plus: change of accounting policy
Correction of errors in previous
periods
Others
II. Balance at the beginning of current
2,075,335,560 1,404,803,407 896,517,690 1,011,882,151 5,388,538,808
year
III. Amount of change in current term
363,052 -292,891,826 -292,528,774
(“-“ for decrease)
(I) Total amount of the comprehensive
329,708,842 329,708,842
income
(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
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CSG Semi-annual Report 2016
3. Amounts of share-based payments
recognized in owners’ equity
4. Others
(III) Profit distribution -622,600,668 -622,600,668
1. Appropriations to surplus reserves
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) Others 363,052 363,052
IV. Balance at the end of this term
2,075,335,560 1,405,166,459 896,517,690 718,990,325 5,096,010,034
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CSG Semi-annual Report 2016
Amount of Last Year
Uniit: RMB
Amount of the same period of last year
Other equity instruments
Less: Other
Items Capital Special Surplus Total of owners’
Perpetual
Share capital Preferred treasury comprehensive Retained profit
capital Others reserve reserves reserves equity
share stock income
securities
I. Balance at the end of the previous 2,075,335,560 1,403,806,545 -15,223,855 845,318,091 1,588,753,536 5,897,989,877
Plus: change of accounting policy
Correction of errors in previous
periods
Others
II. Balance at the beginning of current
2,075,335,560 1,403,806,545 -15,223,855 845,318,091 1,588,753,536 5,897,989,877
year
III. Amount of change in current term
363,052 79,790,488 -548,600,743 -468,447,203
(“-“ for decrease)
(I) Total amount of the comprehensive
79,790,488 489,067,037 568,857,525
income
(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
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CSG Semi-annual Report 2016
3. Amounts of share-based payments
recognized in owners’ equity
4. Others
(III) Profit distribution -1,037,667,780 -1,037,667,780
1. Appropriations to surplus reserves
2. Appropriations to general risk -1,037,667,780 -1,037,667,780
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 363,052 363,052
IV. Balance at the end of this term
2,075,335,560 1,404,169,597 64,566,633 845,318,091 1,040,152,793 5,429,542,674
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CSG Semi-annual Report 2016
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 joint
venture enterprise by Hong Kong China Merchants Shipping Co., LTD (香港招商局轮船股份有限公司), Shenzhen Building
Materials 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 the
People's Republic of China. The Company issued RMB-dominated ordinary shares and foreign shares publicly in October 1991
and January 1992 respectively, and listed on Shenzhen Stock Exchange on February 1992. On 31 December 2015, the
registered 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
flat glass, specialised glass, achitectural glass, energy-saving energy meterials with glass as the medium, polysilicon and solar
module and electronic glass and display, as well as the construction and operation of photovoltaic plant.
The financial statements were authorised for issue by the board of directors on 16 August 2016.
Details of major subsidiaries that were included in the financial statements please refer to Note 9(1).
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 2016, the Group had net current liabilities of about RMB 3.8 billion and committed capital expenditure of RMB 185
million. The directors of the Company has assessed the following facts and conditions: a) the Group has been able to generate
positive operating cash flows in prior years and expect to do so during the coming year; As at 30 June 2016, the net cash inflow from
operation activities was approximately RMB1.047 billion. b) the Group has maintained good relationship with banks so the Group
has been able to successfully get adequate financing credit; As at 30 June 2016, the Group had unutilised internal banking facilities of
approximately RMB 6.4 billion, including the long-term banking facilities of approximately RMB 0.8 billion. In addition, the Group
also has other available financing channels, such as short-term financing bills, ultra-short –term financing notes, medium term notes
and perpetual bonds. The directors are of view that the above banking facilities 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 financial statement of the Company and the Group.
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CSG Semi-annual Report 2016
V. Significant accounting policies and accounting estimates
The Group determines its specific accounting policies and estimates according to manufacturing and operation feature. It mainly
reflected in provision for bad debts of receivables, inventory costing method, amortization of fixed assets and intangible assets,
criteria for determining capitalised development expenditure, and timing for revenue recognition.
Please see the note V (28) for the key judgements adopted by the Group in applying important accounting policies.
1. Statement of compliance with the Accounting Standards for Business Enterprises
The financial statements of the Company for the first half year of 2016 truly and completely present the financial position as of 30
June 2016 and the operating results, cash flows and other information for the first half year of 2016 of the Group and the Company in
compliance 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 carrying
amount in the combined party. As for the balance between the carrying amount of the net assets obtained by the combining party and the
carrying amount of the consideration paid by it, the additional paid-in capital shall be adjusted. If the additional paid-in capital is not
sufficient to be offset, the retained earnings shall be adjusted. Costs directly attributable to business combination are recorded into the
profits and losses once incurred. Transaction costs attributed to issue equity securities or debt securities for business combination are
recorded 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 is
recorded 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 profits
and losses once incurred. Transaction costs attributed to issue equity securities or debt securities for business combination are recorded
into initial recognition amounts of equity securities or debt securities.
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CSG Semi-annual Report 2016
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 consolidated
financial statements from the date when it, together with the Company, comes under common control of the ultimate controlling party.
The portion of the net profits realised before the combination date is presented separately in the consolidated income statement.
When preparing the consolidated financial statements, if the accounting policies and the accounting periods of the Company and
subsidiaries are inconsistent, the financial statements of the subsidiaries are adjusted in accordance with the accounting policies and the
accounting period of the Company. For subsidiaries acquired from business combinations involving enterprises not under common
control, the individual financial statements of the subsidiaries are adjusted based on the fair value of the identifiable net assets at the
acquisition 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 under
equity, net profits and total comprehensive income respectively. Unrealized profits and losses resulting from the sale of assets by the
Company to the subsidiary fully eliminate the net profits attributable to equity holders of the parent; unrealized profits and losses
resulting from the sale of assets by the subsidiary to the Company are eliminated and allocated between net profit attributable to owners
of the parent and minority interests in accordance with the allocation proportion of the Company in the subsidiary. Unrealized profits and
losses resulting from the sale of assets by one subsidiary to another are eliminated and allocated between net profit attributable to owners
of 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 the
Company or its subsidiaries as an accounting entity, it is adjusted from the perspective of the Group.
7. Classification of joint venture arrangements and methods of accounting for joint operation
8. 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 liquid
investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.
9. 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 on
the balance sheet date. Exchange differences arising from these translations are recognised in profit or loss for the current period, except
for those attributable to foreign currency borrowings that have been taken out specifically for the acquisition or construction of
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CSG Semi-annual Report 2016
qualifying assets, which are capitalised as part of the cost of those assets. Non-monetary items denominated in foreign currencies that are
measured at historical costs are translated at the balance sheet date using the spot exchange rates at the date of the transactions. The effect
of exchange rate changes on cash is presented separately in the cash flow statement.
(b) Translation of foreign currency financial statements
The asset and liability items in the balance sheets for overseas operations are translated at the spot exchange rates on the 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 on
cash is presented separately in the cash flow statement.
10. Financial instruments
(a) Financial assets
(i) Classifications of financial assets
Financial 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. Receivables
comprise 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 of
the other categories at initial recognition. Available-for-sale financial assets are included in other current assets on the balance sheet if
management 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 the
financial instrument. The related transaction costs that are attributable to the acquisition of receivables and available-for-sale financial
assets 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 when
they do not have a quoted market price in an active market and whose fair value cannot be reliably measured. Receivables are measured
at 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 for
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CSG Semi-annual Report 2016
impairment losses and foreign exchange gains and losses arising from translation of monetary financial assets. When such financial
assets are derecognised, the cumulative gains or losses previously recognised directly into equity are recycled into profit or loss for the
current period. Interests on available-for-sale investments in debt instruments calculated using the effective interest method during the
period in which such investments are held and cash dividends declared by the investee on available-for-sale investments in equity
instruments 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 asset
is 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 of
financial 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 or
non-temporary decrease of fair value of equity instruments investment. The Group conducts individual inspection on each
available-for-sale equity instruments investment at balance sheet date, if the fair value of the available-for-sale equity instrument is less
than 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 more
than 20% (including 20%) but has not reached 50%, the Group will comprehensively consider other factors such as price volatility to
determine whether the equity instrument investment has been impaired. The Group calculates the initial investment cost of initial
available-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 an
event occurring after the impairment was recognised, the previously recognised impairment loss is reversed and the amount of reversal is
recognised 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 the
decline 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 a
subsequent period, its fair value increases and the increase can be objectively related to an event occurring after the impairment loss was
recognised in profit or loss, the previously recognised impairment loss is reversed into profit or loss for the current period. For an
investment in an equity instrument classified as available-for-sale on which impairment losses have been recognised, the increase in its
fair 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) all
substantial risks and rewards of ownership of the financial assets have been transferred; or iii) the control over the financial asset has
been 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 the
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CSG Semi-annual Report 2016
cumulative 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 other
financial liabilities. The financial liabilities in the Group mainly comprise of other financial liabilities, including payables, borrowings
and bonds payable.
Payables comprise accounts payable, notes payable and other payables, which are recognised initially at fair value and measured
subsequently 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 at
amortised 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 due
with one year (including one year) is reclassified as non-current liabilities due within one year. Others are presented as non-current
liabilities.
A financial liability (or a part of a financial liability) is derecognised when all or part of the obligation is extinguished. The difference
between the carrying amount of a financial liability (or a part of financial liability) extinguished and the consideration paid is recognised
in 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 fair
value of a financial instrument that is not traded in an active market is determined by using a valuation technique. During valuation, the
Group 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, and
uses related observable inputs in preference to the greatest extent. Unobservable inputs are used when it is unable to obtain or is
infeasible for related observable inputs.
11. Recognition standard impairment and receivables
(1) Bad debt provision on receivable accounts with major amount individually
The basis or amount for individually significant receivables
Basis of recognition or standard amount of Receivables that are
is individually greater than 20 million.
individually significant
Receivables that are individually significant are subject to
separate impairment assessment. A provision for impairment
of the receivable is recognized if there is objective evidence
Basis of bad debt provision
that the Group will not be able to collect the full amounts
according to the original terms.
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CSG Semi-annual Report 2016
(2) Receivables that are provided for provision based on their credit risk characteristics
Name of the portfolio Basis of bad debt provision
Portfolio 1 according to percentage of balance method
Portfolio 2 according to percentage of balance method
Accounts on percentage basis in the portfolio:
√Applicable □Non-applicable
Percentage of provision for Percentage of provision for other
Name of the portfolio
accounts receivable(%) receivables(%)
Portfolio 1 2% 2%
Portfolio 2 2% 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 A provision for impairment of the receivable is recognized if there is objective evidence that
individually: the Group will not be able to collect the full amounts according to the original terms.
The provision for impairment of the receivable is established at the difference between the
Basis of bad debt provision:
carrying amount of the receivable and the present value of estimated future cash flows.
12. Inventories
(a)Classification
Inventories refer to manufacturing sector, including raw materials, work in progress, finished goods and turnover materials, and are
measured at the lower of cost and net realisable value.
(b)Inventory costing method
Cost is determined using the weighted average method. The cost of finished goods and work in progress comprise raw materials,
direct labour and systematically allocated production overhead based on the normal production capacity.
(c)Amortisation methods of low value consumables and packaging materials
Turnover 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 inventories
Provision for decline in the value of inventories is determined at the excess amount of the carrying amounts of the inventories over
their 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.
The Group adopts the perpetual inventory system.
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CSG Semi-annual Report 2016
13. 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 for sales of such non-current asset or disposal group; (2) the Group has made a resolution and obtained appropriate
approval for disposal of the non-current asset or the disposal group; (3) the Group has signed an irrevocable transfer agreement
with the transferee; and (4) the transfer is to 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 at the 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;
while liabilities included in disposal groups classified as held for sale are accounted for as current liabilities, which are presented
separately in the 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
separately identifiable operationally and for financial reporting purposes, and satisfies one of the following conditions: (1)
represents a separate major line of business or geographical area of operations; (2) is part of a single coordinated plan to dispose
of a separate major line of business or geographical area of operations; and (3) is a subsidiary acquired exclusively with a view to
resale.
14. 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 has
significant 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 equity
method. Long-term equity investments where the Group does not have control, joint control or significant influence over the
investees, and which are not quoted in an active market and whose fair value cannot be reliably measured are measured using the
cost method.
a. Initial recognition
For long-term equity investments formed in business combination: when obtained from business combinations involving entities
under common control, the long-term equity investment is stated at carrying amount of equity for the combined parties at the time
of merger; when the long-term equity investment obtained from business combinations involving entities not under common
control, the investment is measured at combination cost.
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CSG Semi-annual Report 2016
For long-term equity investments not formed in business combination: the one paid by cash is initially measured at actual purchase
price; the long-term investment obtained by issuing equity securities is stated at fair value of equity securities as initial investment
cost.
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 profit
distribution 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’s
share 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 is
adjusted upwards accordingly.
For long-term equity investments accounted for using the equity method, the Group recognises the investment income according to
its share of net profit or loss of the investee. The Group discontinues recognising its share of the net losses of an investee after the
carrying 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 asset
impairment 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 activities
of 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 an
enterprise, 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 the
recoverable amount is less than the carrying amount.
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15. Fixed assets
(1) Recognition and initial measurement
Fixed assets comprise buildings, machinery and equipment, motor vehicles, computers and electronic equipment and office
equipment.Fixed assets are recognised when it is probable 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 asset are included in the cost of the fixed asset when it is probable that
the associated economic benefits will flow to the Group and the related cost can be reliably measured. The carrying amount of
the replaced part is derecognised. All the other subsequent expenditures are recognised in profit or loss in the period in which
they are incurred.
(2) Depreciation
Categories Depreciation method Depreciation age (year) Salvage Value Rate (%) Annual depreciation rate (%)
Houses & buildings straight-line method 20–35 5% 2.71% ~ 4.75%
Equipment & machinery straight-line method 8–15 5% 4.75%~11.88%
Transportation
straight-line method 5–8 0% 12.50%~20%
equipment and others
16. Construction in progress
Construction in progress is measured at actual cost. Actual cost comprises construction costs, installation costs, borrowing costs
that are eligible for capitalisation and other costs necessary to bring the fixed assets ready for their intended use. Actual cost
also 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 begins
from the following month.
The carrying amount of construction in progress is reduced to the recoverable amount when the recoverable amount is below
the carrying amount.
17. Borrowing costs
The borrowing costs that are directly attributable to the acquisition and construction of a fixed asset that needs a substantially
long period of time for its intended use commence to be capitalised and recorded as part of the cost of the asset when
expenditures for the asset and borrowing costs have been incurred, and the activities relating to the acquisition and construction
that are necessary to prepare the asset for its intended use have commenced. The capitalisation of borrowing costs ceases when
the asset under acquisition or construction becomes ready for its intended use and the borrowing costs incurred thereafter are
recognised in profit or loss for the current period. Capitalisation of borrowing costs is suspended during periods in which the
acquisition or construction of a fixed asset is interrupted abnormally and the interruption lasts for more than 3 months, until the
acquisition or construction is resumed.
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CSG Semi-annual Report 2016
For the specific 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 deducting any interest income earned from depositing the unused
specific borrowings in the banks or any investment income arising on the temporary investment of those borrowings during the
capitalisation 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 general
borrowings, to the weighted average of the excess amount of cumulative expenditures on the asset over the amount of specific
borrowings. The effective interest rate is the rate at which the estimated future cash flows during the period of expected
duration of the borrowings or applicable shorter period are discounted to the initial amount of the borrowings.
18. 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 the
land use rights and the buildings located thereon cannot be reasonably allocated between the land use rights and the buildings, all of the
acquisition 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 exploitation
certificate.
(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, with
adjustment 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 on
the development phase based on its nature and whether there is material uncertainty that the research and development activities can
form an intangible asset at end of the project.
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Expenditure on the research phase related to planned survey, evaluation and selection for research on manufacturing technique is
recognised in profit or loss in the period in which it is incurred. Prior to mass production, expenditure on the development phase related
to the design and testing phase in regards to the final application of manufacturing technique is capitalised only if all of the following
conditions 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 of
marketing;
There is sufficient technical and capital to support the development of manufacturing technique and subsequent mass production; and
the expenditure on manufacturing technique development can be reliably gathered.
Other development expenditures that do not meet the conditions above are recognised in profit or loss in the period in which they are
incurred. Development costs previously recognised as expenses are not recognised as an asset in a subsequent period. Capitalised
expenditure on the development phase is presented as development costs in the balance sheet and transferred to intangible assets at the
date that the asset is ready for its intended use.
19. Impairment of long-term assets
Fixed assets, construction in progress, intangible assets with finite useful lives and long-term equity investments in joint ventures and
associates are tested for impairment if there is any indication that the assets may be impaired at the balance sheet date; intangible assets
not ready for their intended use are tested at least annually for impairment, irrespective of whether there is any indication that they may
be impaired. If the result of the impairment test indicates that the recoverable amount of an asset is less than its carrying amount, a
provision for impairment and an impairment loss are recognised for the amount by which the asset’s carrying amount exceeds its
recoverable 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 asset
basis. If it is not possible to estimate the recoverable amount of an individual asset, the recoverable amount of a group of assets to which
the 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 there
is any indication that it may be impaired. In conducting the test, the carrying value of goodwill is allocated to the related asset groups or
groups of asset groups which are expected to benefit from the synergies of the business combination. If the result of the test indicates
that the recoverable amount of an asset group or group of asset groups, including the allocated goodwill, is lower than its carrying
amount, the corresponding impairment loss is recognised. The impairment loss is first deducted from the carrying amount of goodwill
that is allocated to the asset group or group of asset groups, and then deducted from the carrying amounts of other assets within the asset
groups 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.
20. Long-term prepaid expenses
Long-term prepaid expenses include the expenditures that have been incurred but should be recognised as expenses over more than one
year in the current and subsequent periods. Long-term prepaid expenses are amortised on the straight-line basis over the expected
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beneficial period and are presented at actual expenditure net of accumulated amortisation.
21. Employee benefits
(1) Short-term employee benefits accounting method
Employee benefits include short-term employee benefits, post-employment benefits, termination benefits and other long-term
employee benefits provided in various forms of consideration in exchange for service rendered by employees or compensations for the
termination of employment relationship.
a.Short-term employee benefits
Short-term employee benefits include employee wages or salaries, bonus, allowances and subsidies, staff welfare, premiums or
contributions on medical insurance, work injury insurance and maternity insurance, housing funds, union running costs and employee
education 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 contribution
plans are post-employment benefit plans under which the Group pays fixed contributions into a separate fund and will have no
obligation to pay further contributions; and Defined benefit plans are post-employment benefit plans other than defined contribution
plans. 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 and
percentage by the relevant local authorities. When employees retire, the relevant local authorities are obliged to pay the basic pensions
to them. The amounts based on the above calculations are recognised as liabilities in the accounting period in which the service has
been 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 employment
contracts or as an offer to encourage employees to accept voluntary redundancy before the end of the employment contracts. The Group
recognises a liability arising from compensation for termination of the employment relationship with employees, with a corresponding
charge to profit or loss at the earlier of the following dates: 1) when the Group cannot unilaterally withdraw the offer of termination
benefits because of an employment termination plan or a curtailment proposal; 2) when the Group recognises costs or expenses related
to 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.
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22. 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 be
measured reliably.
A provision is initially measured at the best estimate of the expenditure required to settle the related present obligation. Factors
surrounding a contingency, such as the risks, uncertainties and the time value of money, are taken into account as a whole in reaching
the best estimate of a provision. Where the effect of the time value of money is material, the best estimate is determined by discounting
the related future cash outflows. The increase in the discounted amount of the provision arising from passage of time is recognised as
interest expense.
The carrying amount of provisions is reviewed at each balance sheet date and adjusted to reflect the current best estimate.
23. 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 flat and engineer glass, fine glass, and products related to solar energy. For domestic sales, the Group delivers
the products to a certain place specified in the contract. When the buyer takes over the goods, the Group recognizes revenue. For export
sales, the Group recognizes the revenue when it finished clearing goods for export and deliver the goods on board the vessel, or when
the goods are delivered to a certain place specified in the contract. For above sales, when the buyer 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.
24. 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.
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CSG Semi-annual Report 2016
Grants from the government are recognised when there is a reasonable assurance that the grants will be received and the Group will
comply with all attached conditions. Monetary government grants are measured at the amounts received or receivable. Non-monetary
government 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 or
construction of, or which form the long-term assets by other ways. Government grants related to income refers to government grants
other than those related to assets.
Deferred income is recognized for government grants related to an asset and evenly allocated over the useful life of the related assets,
which are recognised in profit or loss for the current period. Government grants measured at nominal amount is directly recognised in
profit or loss for current period.
(2) Judgment basis and accounting method of government grants related to income
Government grants related to income, which is used to compensate the costs or losses incurred in future, are recognised as deferred
income and recognised in profit or loss over the period in which related costs are recognised.
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 of
assets and liabilities and their carrying amounts (temporary differences). Deferred tax asset is recognised for the deductible losses that
can be carried forward to subsequent years for deduction of the taxable profit in accordance with the tax laws. No deferred tax liability
is recognised for a temporary difference arising from the initial recognition of goodwill. No deferred tax asset or deferred tax liability is
recognised for the temporary differences resulting from the initial recognition of assets or liabilities due to a transaction other than a
business combination, which affects neither accounting profit nor taxable profit (or deductible loss). At the balance sheet date, deferred
tax assets and deferred tax liabilities are measured at the tax rates that are expected to apply to the period when the asset is realised or
the liability is settled.
Deferred tax assets are only recognised for deductible temporary differences, deductible losses and tax credits to the extent that it is
probable that taxable profit will be available in the future against which the deductible temporary differences, deductible losses and tax
credits can be utilised.
Deferred tax liabilities are recognised for temporary differences arising from investments in subsidiaries and associates, except where
the Group is able to control the timing of reversal of the temporary difference, and it is probable that the temporary difference will not
reverse in the foreseeable future. When it is probable that the temporary differences arising from investments in subsidiaries and
associates will be reversed in the foreseeable future and that the taxable profit will be available in the future against which the
temporary differences can be utilised, the corresponding deferred tax assets are recognised.
Deferred tax assets and liabilities are offset when:
the deferred taxes are related to the same tax payer within the Group and the same taxation authority; and,
that tax payer within the Group has a legally enforceable right to offset current tax assets against current tax liabilities.
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CSG Semi-annual Report 2016
26. 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 as
part of the cost of related assets, or charged as an expense for the current period.
Lease income under an operating lease is recognised as revenue on a straight-line basis over the period of the lease.
(2) Accounting 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.
27. Other significant accounting policies and accounting estimates
The Group continually evaluates the critical accounting estimates and key assumption applied based on historical experience and other
factors, including expectations of future events that are believed to be reasonable.
The critical accounting estimates and key assumptions that have a significant risk of causing a material adjustment to the carrying
amounts 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 tax
determination is uncertain during the ordinary course of business. Significant judgement is required from the Group in determining the
provision for income taxes in each of these jurisdictions. Where the final tax outcome of these matters is different from the amounts that
were initially recorded, such differences will impact the income tax and deferred tax provisions in the period in which such
determination 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 the
balance 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. The
management determines whether the long-term assets impaired or not by evaluating and analysing following aspects: (1) whether the
event 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.
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CSG Semi-annual Report 2016
Various assumptions, including the discount rate and growth rate applied in the method of present value of future cash flow, are
required in evaluating the recoverable amount of assets. If these assumptions cannot be conformed, the recoverable amount should be
modified, 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 similar
properties and functions. When there are differences between actually useful life and previously estimation, the management will
adjust estimation to useful life of fixed assets. The fixed assets would be written off or written down when fixed assets been disposed or
became redundant. There will be difference between the results of estimation and actual results for next accounting period, so
significant adjustments may be made to the carrying amount of fixed assets in balance sheet.
28. Changes in significant accounting policies and accounting estimates
(1) Changes in significant accounting policies
□Applicable √ Not applicable
(2)Changes in significant accounting estimates
□Applicable √ Not applicable
29. Others
Safety production reserve
According to relevant regulations of the Ministry of Finance and National Administration of Work Safety, a subsidiary of the Group
which is engaged in producing and selling polysilicon appropriates safety production reserve on following basis:
(a)4% for revenue below RMB 10 million of the year;
(b)2% for the revenue between RMB 10 million to RMB 100 million of the year;
(c)0.5% for the revenue between RMB 100 million to RMB 1 billion of the year;
(d)0.2% for the revenue above RMB 1 billion of the year.
The safety production reserve is mainly used for the overhaul, renewal and maintenance of safety facilities. The safety production
costs are charged to costs of related products or profit and loss when appropriated, and safety production reserve in equity account are
credited correspondingly. When using the special reserve, if the expenditures are expenses in nature, the expenses incurred are offset
against the special reserve directly when incurred. If the expenditures are capital expenditures, when projects are completed and
transferred to fixed assets, the special reserve should be offset against the cost of fixed assets, and a corresponding accumulated
depreciation are recognised. The fixed assets are no longer be depreciated in future.
Segment information
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CSG Semi-annual Report 2016
The Group identifies operating segments based on the internal organisation structure, management requirements and internal reporting
system, and discloses segment information of reportable segments which is determined on the basis of operating segments.
An operating segment is a component of the Group that satisfies all of the following conditions: (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 the
information on financial position, operating results and cash flows is available to the Group. If two or more operating segments have
similar 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 items Tax basis Tax rate
Taxable value added amount (Tax payable is calculated
Value added tax (“VAT”) using the taxable sales amount multiplied by the effective 6%-17%
tax rate less current period’s deductible VAT input )
Business tax Taxable business income amount 5%
Urban construction tax Total VAT, Business tax and GST 1%-7%
Enterprise income tax Taxable income 0%-25%
Resource tax Quantities of Silica sold RMB 3 per ton
Educational surtax Total VAT, Business tax and GST 3%-5%
2. Tax incentives
The Group's major tax incentives are as follows:
Tianjin Energy Conservation Glass Co. Ltd. was recognised as 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 three years since 2015.
Dongguan CSG Architectural Glass Co. Ltd. was recognised as a high and new tech enterprise in 2013, 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 2013. For the
Certificate of High and New Tech Enterprise is under review at present, it temporarily calculates enterprise income tax at a tax rate of
15% for current year.
Wujiang CSG North-east Architectural Glass Co., Ltd. passed the 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.
Dongguan CSG Solar Glass Co,. Ltd. passed the 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.
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CSG Semi-annual Report 2016
Yichang CSG Polyilicon Co. Ltd. passed the 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.
Dongguan CSG PV-tech Co. Ltd. was recognised as a high and new tech enterprise in 2013, 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 2013. For the Certificate of
High and New Tech Enterprise is under review at present, it temporarily calculates enterprise income tax at a tax rate of 15% for current
year.
Hebei Panel Glass Co., Ltd. was recognised as a high and new tech enterprise in 2013, 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 2013. For the Certificate of High and
New Tech Enterprise is under review at present, it temporarily calculates enterprise income tax at a tax rate of 15% for current year.
Wujiang CSG Glass Co. Ltd. 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.
Xianning CSG Glass Co. Ltd. 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.
Xianning Energy Conservation Glass Co. Ltd. was recognised as 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 three years since 2015.
Yichang CSG photoelectric glass Co., Ltd. and Yichang CSG Display Co., Ltd., subsidiaries of ShenZhen Nanbo Display Technolog
Co., Ltd. were recognised as high and new tech enterprises in 2015, and obtained the Certificate of High and New Tech Enterprise,
the period of validity is three years. They apply to 15% tax rate for three years since 2015.
Sichuan CSG Energy Conservation Glass Co. Ltd. obtains enterprise income tax preferential treatment for Western Development, and
temporarily calculates enterprise income tax at a tax rate of 15% for current year.
Chengdu CSG Glass Co., Ltd. obtains enterprise income tax preferential treatment for Western Development, and temporarily
calculates enterprise income tax at a tax rate of 15% for current year.
Qingyuan CSG New Energy Co., Ltd., Suzhou CSG PV Energy Co., Ltd. and Jiangsu Wujiang CSG New Energy Co., Ltd. belong to
public infrastructure projects supported by the State pursuant to the No. 87 rules of Enterprise Income Tax Law Implementation
Regulations, "and they can enjoy the preferential tax policy of "Three years for free andThree years by half " from 2015. The enterprise
income tax rate is 0% for current year.
3. Others
Some subsidiaries of the Group have used the “exempt, credit, refund” method on goods exported and the refund rate is 5%-17%.
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CSG Semi-annual Report 2016
VII. Notes to the consolidated financial statements
1. Cash at bank and on hand
Unit: RMB
Item Balance at the end of the period Balance at the beginning of the period
Cash on hand 20,027 20,172
Cash at bank 404,598,881 574,654,753
Other cash balances 5,537,805 4,159,595
Total 410,156,713 578,834,520
Including: Total overseas deposit 2,257,908 4,694,162
Other cash balances include margin deposits for the application of opening letter of credit and loan from the bank, amounting to RMB
5,446,558 (31 Dec. 2015: RMB 4,089,643), which is restricted cash.
2. Notes receivable
(1) Notes receivable listed by classification
Unit: RMB
Item Balance at the end of the period Balance at the beginning of the period
Bank acceptance notes 179,636,983 186,998,705
Trade acceptance notes 194,270,474 266,547,833
Total 373,907,457 453,546,538
(2) Notes receivable which has been endorsed or discounted at the end of the term by the Company but not
yet due at balance sheet date
Unit: RMB
Amount of recognition termination Amount of not terminated recognition at the
Item
at the period-end period-end
Bank acceptance notes 2,016,080,353
Trade acceptance notes 139,081,700
Total 2,016,080,353 139,081,700
3. Accounts receivable
(1) Accounts receivable disclosed by category
Unit: RMB
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CSG Semi-annual Report 2016
End of term Beginning of term
Bad debt
Book balance Bad debt provision Book balance
Categories provision
Book value Book value
Propor Propor Propor Propor
Amount Amount Amount Amount
tion % tion % tion % tion %
Accounts receivable
withdrawn bad debt
provision according 581,519,639 100% 11,123,130 2% 570,396,509 461,730,618 100% 8,769,006 2% 452,961,612
to credit risks
characteristics
Account receivable
with minor
individual amount
2,394,626 0% 2,241,625 94% 153,001 710,591 0% 710,591 100% 0
but bad debt
provision is
provided
Total 583,914,265 100% 13,364,755 2% 570,549,510 462,441,209 100% 9,479,597 2% 452,961,612
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
Closing balalnce
Name of portfolio
Accounts receivable Bad debt provision Proportion %
Portfolio 1 581,519,639 11,123,130 2%
Total 581,519,639 11,123,130 2%
(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 4,137,975. The amount of the reversed or
collected part during the report period was of RMB 3,174,282.
(3) The actual write-off accounts receivable
Unit: RMB
Item Write-off amount
Accounts receivable 0
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CSG Semi-annual Report 2016
(4) Top 5 of the closing balance of the accounts receivable colleted according to the arrears party
As at 30 June 2016, the top 5 of the closing balance of the accounts receivable colleted according to the arrears party were collected
and analyzed as follows:
Balance Provision for bad debts Percentage in total accounts receivable balance
Total balances for the five 166,899,672 3,337,993 29%
largest accounts receivable
4. Advances to suppliers
(1) Listed by aging analysis
Unit: RMB
Closing balance Opening balance
Age Proportion Proportion
Amount Amount
ratio (%) ratio (%)
within 1 year 146,546,136 98% 106,939,220 97%
1-2 years 860,136 1% 2,546,699 2%
2-3 years 1,485,000 1%
Over 3 years 355,376 1%
Total 148,891,272 -- 109,841,295 --
As at 30 June 2016, advances to suppliers ageing over one year amount to RMB 2,345,136 (31 December 2015: RMB 2,902,075). 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 2016, the top five largest advances to supplies are set out as below:
Balance Percentage in total advances balance
Total advances for the five largest advances 45,130,987 30%
5. Other account receivable
(1) Other accounts receivable disclosed by category:
Unit: RMB
Closing balance Openning balance
Categories
Book balance Bad debt provision Book value Book balance Bad debt Book value
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CSG Semi-annual Report 2016
provision
Propor Propor Propor Propor
Amount Amount Amount Amount
tion % tion % tion % tion %
Other accounts
receivable with large
amount and
provided bad debt
provisions
individually
Other accounts
receivable
withdrawn bad debt
209,109,204 100% 550,558 0% 208,558,646 118,598,152 100% 2,373,782 2% 116,224,370
provision according
to credit risks
characteristics
Other accounts
receivable with
small amount but
provided bad debt
provisions
individually
Total 209,109,204 100% 550,558 0% 208,558,646 118,598,152 100% 2,373,782 2% 116,224,370
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
Closing balance
Name of portfolio
Other receivable accounts Bad debt provision proportion%
portfolio 1 209,109,204 550,558 0%
Total 209,109,204 550,558 0%
(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 214,538. The amount of the reversed or
collected part during the report period was of RMB 2,056,745.
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CSG Semi-annual Report 2016
(3) Other accounts receivable written-off during the reporting period
Unit: RMB
Item written-off amount
Other accounts receivable 0
(4) Other accounts receivable classified by the nature of accounts
Unit: RMB
Nature Closing balance Opening balance
Share transfer receivable 150,000,000
Payments made on behalf of other parties 27,996,265 12,865,719
Subsidy fund receivable 20,000,000
Deposits 6,788,385 10,341,895
Petty cash 1,343,860 1,014,999
Export tax rebates receivable 770,716 1,995,748
Amounts due from related parties 90,436,480
Others 2,209,978 1,943,311
Total 209,109,204 118,598,152
(5) Top 5 of the closing balance of the other accounts receivable collated according to the arrears party
Unit: RMB
Proportion of the
Name of the total year end
Closing balance of
companies Nature Closing balance Ages balance of the
bad debt provision
Industrial accounts receivable
(%)
Company A Independent third party 150,000,000 Within 1 year 72%
Company B Independent third party 20,000,000 Within 1 year 10%
Company C Independent third party 11,067,754 Within 1 year 5% 221,355
Company D Independent third party 8,075,302 Within 1 year 4% 161,506
Company E Independent third party 3,183,030 Within 1 year 2% 63,661
Total -- 192,326,086 -- 93% 446,522
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CSG Semi-annual Report 2016
6. Inventories
(1) Categories of inventory
Unit: RMB
Closing balance Opening balance
Items Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Raw materials 168,522,304 8,259,903 160,262,401 136,073,385 1,988,441 134,084,944
Product in process 21,086,073 21,086,073 12,201,768 12,201,768
Products in stock 204,116,797 1,422,381 202,694,416 169,850,460 21,650 169,828,810
Material in
27,982,256 27,982,256 34,310,210 34,310,210
circulation
Total 421,707,430 9,682,284 412,025,146 352,435,823 2,010,091 350,425,732
(2) Inventory impairment provision
Unit: RMB
Increased this term Decreased this term
Categories Opening balance Closing balance
Withdrawal Other Reverse or write-off Other
Raw materials 1,988,441 8,583,232 2,311,770 8,259,903
Products in stock 21,650 1,693,711 292,980 1,422,381
Total 2,010,091 10,276,943 2,604,750 9,682,284
7. Other current assets
Unit: RMB
Item Closing balance Opening balance
VAT to be offset 197,601,704 101,333,684
Prepaid enterprise income tax 12,330,447 17,025,433
Total 209,932,151 118,359,117
8. Long-term account receivable
(1) Long-term account receivable
Unit: RMB
Items Closing balance Opening balance Discount rate
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CSG Semi-annual Report 2016
Impairment Impairment interval
Book balance Book value Book balance Book value
provision provision
Financing lease 50,104,299 50,104,299
Total 50,104,299 50,104,299 --
9. Long-term equity investment
Unit: RMB
Increase/decrease
Closing
Gains and Withdra
Adjustme Cash Closin balance
Additio Reduc losses wal of
Opening nt of Changes bonus or g of
Investee nal ed recognized impairm
balance other of other profits Other balanc impairme
investm invest under the ent
comprehe equity announce e nt
ent ment equity provisio
nsive d to issue provision
method n
income
I. Joint ventures
II. Associated enterprises
Shenzhen
CSG
Display 668,210,253 -14,264,359 81,142 -654,027,036 0
Technology
Co., Ltd
Subtotal 668,210,253 -14,264,359 81,142 -654,027,036 0
Total 668,210,253 -14,264,359 81,142 -654,027,036 0
10. Fixed assets
(1) Particulars of fixed assets
Unit: RMB
Machinery and Motor vehicles
Items Buildings Total
equipment and others
I. Original book value:
1. Opening balance 3,355,091,235 9,984,689,080 183,896,384 13,523,676,699
2. Increased amount of the period
(1) Acquisition 3,111,276 4,339,811 1,566,364 9,017,451
(2) Transfers from construction in progress 159,747,369 738,974,967 2,930,001 901,652,337
(3) Increase from enterprise combination 236,895,673 663,288,661 12,985,384 913,169,718
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CSG Semi-annual Report 2016
(4) Other 9,234,322 7,422,076 804,334 17,462,732
3. Decreased amount of the period
(1)Disposal or retirement 165,662 1,485,981 1,651,643
4. Closing balance 3,764,079,875 11,398,548,933 200,698,486 15,363,327,294
II. Accumulative depreciation and
accumulative amortization
1. Opening balance 503,153,539 2,478,151,198 150,403,266 3,131,708,003
2. Increased amount of the period
(1) Withdrawal 55,468,992 356,231,713 10,292,917 421,993,622
(2) Increase from enterprise combination 12,322,096 74,428,901 4,993,352 91,744,349
3. Decreased amount of the period
(1)Disposal or retirement 143,830 1,473,211 1,617,041
4. Closing balance 570,944,627 2,908,667,982 164,216,324 3,643,828,933
III. Depreciation reserves
1. Opening balance 192,293,767 192,293,767
2. Increased amount of the period
(1) Withdrawal
(2) Increase from enterprise combination 22,661,350 22,661,350
3. Decreased amount of the period
(1)Disposal or retirement
4. Closing balance 214,955,117 214,955,117
IV. Book value
1. Closing book value 3,193,135,248 8,274,925,834 36,482,162 11,504,543,244
2. Opening book value 2,851,937,696 7,314,244,115 33,493,118 10,199,674,929
(2) Fixed asset not licensed yet
Unit: RMB
Items Book value Reason for not granted
Have submitted the required documents and are in the process of
Buildings 1,000,854,624
application, or the related land use right certificate pending
95
CSG Semi-annual Report 2016
11. Construction in process
(1)Particulars of construction in process
Unit: RMB
Closing balance Opening balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Hebei float 900T
tech-innovation 263,731,709 263,731,709 219,284,657 219,284,657
project
Flat display
project of 229,719,530 14,160,474 215,559,056 0 0
Shenzhen Display
Dongguan PV
Tech 200MW
138,128,566 138,128,566 138,128,566 138,128,566
PV-tech Cell
Expansion project
Yichang CSG
electronic grade
polysilicon 87,115,370 87,115,370 6,426,987 6,426,987
upgrading and
expansion project
Dongguan Solar
Glass Phase I and
78,769,781 33,075,116 45,694,665 78,769,781 33,075,116 45,694,665
II improvement
project
Wujiang float
72,780,268 19,876,460 52,903,808 71,554,818 19,876,460 51,678,358
glass project
Chengdu Float
550T line 66,813,524 66,813,524 66,834,070 66,834,070
tech-renovation
Zhangzhou
Kibing 11MV
distributed PV 50,050,000 50,050,000
power plant
project
Expansion project
of 150MW cell
55,153,387 55,153,387
production line in
Dongguan CSG
96
CSG Semi-annual Report 2016
PV-tech
Xianning
energy-saving 14,081,164 14,081,164 13,392,938 13,392,938
glass project
Sichuan
energy-saving 12,716,479 12,716,479 12,700,388 12,700,388
project Phase III
Wujiang
Photovoltaic
2,173,945 2,173,945 4,054,084 4,054,084
packaging
materials project
Yichang 700MW
silicon cell 2,379,639 2,379,639 2,417,282 2,417,282
expansion project
Qingyuan
high-performance
ultrathin 1,034,372 1,034,372 491,656,054 491,656,054
electronic glass
project
Chengdu Float
700T line 223,787,831 223,787,831
tech-renovation
Others 82,758,916 82,758,916 63,284,900 63,284,900
Total 1,157,406,650 67,112,050 1,090,294,600 1,392,292,356 52,951,576 1,339,340,780
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CSG Semi-annual Report 2016
(2) Movement of significant project
Unit: RMB
Investmen Accumulate Including: Capitalizing
Transferred
Opening Increased Other Closing t on of interest rate of
Projects Budget into fixed Progress Fund recourse
balance this term decreases balance budget interest capitalized interest this
assets
(%) capitalized this term period %
Qingyuan
high-performance Internal fund
471,660,000 491,656,054 72,213,589 562,835,271 1,034,372 99% 100% 15,471,799 4,186,057 4.54%
ultrathin electronic glass and bank loan
project
Chengdu Float 700T Internal fund
106,053,391 223,787,831 30,414,876 221,459,190 32,743,517 0 89% 100% 778,377
line tech-renovation and bank loan
Hebei float 900T
124,000,000 219,284,657 44,447,052 263,731,709 51% 80% Internal fund
tech-innovation project
Dongguan PV Tech
Internal fund
200MW PV-tech Cell 697,000,000 138,128,566 138,128,566 96% 100% 32,015,800
and bank loan
Expansion project
Dongguan Solar Glass
Phase I and II 396,410,000 78,769,781 78,769,781 80% 80% Internal fund
improvement project
Wujiang float glass Internal fund
845,630,000 71,554,818 4,215,530 2,990,080 72,780,268 99% 99% 20,120,444
project and bank loan
Chengdu Float 550T
200,000,000 66,834,070 20,546 66,813,524 2% 2% Internal fund
line tech-renovation
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CSG Semi-annual Report 2016
Xianning energy-saving Internal fund
295,270,606 13,392,938 4,452,100 2,580,343 1,183,531 14,081,164 99% 100% 11,306,278
glass project and bank loan
Sichuan energy-saving Internal fund
222,817,517 12,700,388 16,091 12,716,479 95% 99%
project Phase III
Wujiang Photovoltaic Internal fund
packaging materials 500,000,000 4,054,084 14,443,571 16,323,710 2,173,945 87% 100% 6,321,397 and bank loan
project
Yichang 700MW silicon Internal fund
1,980,000,000 2,417,282 45,107,289 45,144,932 2,379,639 81% 100% 17,594,454 248,796 4.18%
cell expansion project and bank loan
Zhangzhou Kibing Internal fund
11MV distributed PV 76,500,000 50,050,000 50,050,000 70% 70% and bank loan
power plant project
Flat display project of Internal fund
1,970,000,000 239,997,183 10,277,653 229,719,530 43% 50% 165,025 165,025 5.03%
Shenzhen Display and bank loan
Yichang CSG electronic Internal fund
grade polysilicon and bank loan
613,220,000 6,426,987 80,688,383 87,115,370 13% 45% 412,848 412,848 4.18%
upgrading and
expansion project
Expansion project of Internal fund
150MW cell production and bank loan
168,100,000 55,153,387 55,153,387 33% 40% 699,768 699,768 4.15%
line in Dongguan CSG
PV-tech
Internal fund
Others 2,451,133,457 63,284,900 59,515,174 40,041,158 82,758,916 19,530,521 470,897 4.18%
and bank loan
Total 11,117,794,971 1,392,292,356 700,714,225 901,652,337 33,947,594 1,157,406,650 -- -- 124,416,711 6,183,391 --
99
CSG Semi-annual Report 2016
12. Intangible assets
(1) Particulars of intangible assets
Unit: RMB
Non-patent Mineral
Item Land use rights Patents Others Total
technology rights
I. Original book value:
1. Opening balance 859,283,718 135,523,184 4,456,536 23,246,513 1,022,509,951
2. Increased amount of the period
(1) Acquisition 3,878,226 41,416 3,919,642
(2) Internal R &D 9,134,292 9,134,292
(3) Increase from enterprise combination 143,856,217 99,984,930 375,886 244,217,033
3. Decreased amount of the period
(1)Disposal
4. Closing balance 1,007,018,161 244,642,406 4,456,536 23,663,815 1,279,780,918
II. Total accrued amortization
1. Opening balance 100,590,100 43,606,821 2,905,442 15,958,297 163,060,660
2. Increased amount of the period
(1) Withdrawal 8,932,936 5,017,253 200,321 2,164,913 16,315,423
Increase from enterprise combination 9,611,444 1,065,029 247,681 10,924,154
3. Decreased amount of the period
(1)Disposal
4. Closing balance 119,134,480 49,689,103 3,105,763 18,370,891 190,300,237
III. Impairment provision
1. Opening balance 13,201,347 9,133 13,210,480
2. Increased amount of the period
(1) Withdrawal
3. Decreased amount of the period
(1)Disposal
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CSG Semi-annual Report 2016
4. Closing balance 13,201,347 9,133 13,210,480
IV. Book value
1. Closing book value 887,883,681 181,751,956 1,350,773 5,283,791 1,076,270,201
2. Opening book value 758,693,618 78,715,016 1,551,094 7,279,083 846,238,811
At the end of the period, the intangible assets arising from internal research and development accounted for 8.27% of total of intangible
assets.
(2) Land use right not licensed yet
Unit: RMB
Item Book value Reason for not granted
Land 9,652,536 in the process
During Jan.-Jun. 2016, the amortisation of intangible assets amounted to RMB 16,315,423 (Jan.-Jun. 2015: RMB 16,350,879).
As at 30 June 2016, ownership certificates of land use right (“Land ownership Certificates”) for certain land use rights of the Group
with carrying amounts of approximately RMB 9,652,536 (cost: RMB10,236,443) had not yet been obtained by the Group (as at 31
December 2015, carrying amount: RMB 5,179,819, cost: RMB 5,650,712). The Company’s management is of the view that there is
no 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.
13. Development expenditure
Unit: RMB
The increased amount in the period The decrease amount in the period
Opening Closing
Item Internal development Recognised as Transfer in gains
balance Others balance
expenditure intangible assets and losses
Development
26,280,426 29,033,215 9,134,292 1,314,785 44,864,564
expenditure
Total 26,280,426 29,033,215 9,134,292 1,314,785 44,864,564
During Jan.-Jun. 2016, the total amount of research and development expenditures of the Group was RMB 171,627,628 (Jan.-Jun. 2015:
RMB 130,265,531), including RMB 143,909,198 (Jan.-Jun. 2015: RMB 118,636,645) recorded in income statement for current period
and RMB 9,134,292 were recognized as intangible assets (Jan.-Jun. 2015: nil). As at 30 June 2016, the intangible assets arising from
internal research and development accounted for 8.27% of the total of book value of intangible assets (31 December 2015: 9.44%).
14. Goodwill
(1)Book value of goodwill
Unit: RMB
101
CSG Semi-annual Report 2016
Name of the companies or Increased this term Decreased this term
Opening balance Closing balance
goodwill item Arising from enterprise merger Disposal
Tianjing Architecture 3,039,946 3,039,946
Shenzhen Display Company 714,491,929 714,491,929
Xianning Fengwei Company 4,857,406 4,857,406
Total 3,039,946 719,349,335 722,389,281
15. Long-term expenses to be amortized
Unit: RMB
Item Opening balance Increased this term Amortized this term Other decrease Closing balance
Expenses to be amortized 1,597,865 207,588 524,005 1,281,448
Total 1,597,865 207,588 524,005 1,281,448
16. Deferred income tax asset/deferred income tax liabilities
(1) Deferred income tax assets had not been off-set
Unit: RMB
Closing balance Opening balance
Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference assets difference assets
Provision for asset
381,381,771 57,970,029 334,825,820 52,780,849
impairments
profit on paper from
internal transaction
Deductible loss 234,680,876 52,775,430 322,298,445 62,556,980
Government grants 123,771,641 21,015,163 146,503,008 25,717,201
Accrued expenses 25,862,973 3,879,446 38,018,222 5,740,840
Depreciation of fixed
26,007,065 4,421,201 30,352,519 6,285,954
assets
Total 791,704,326 140,061,269 871,998,014 153,081,824
(2) Deferred income tax liabilities had not been off-set
Unit: RMB
Closing balance Opening balance
Item
Deductible temporary Deferred income tax Deductible temporary Deferred income tax
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CSG Semi-annual Report 2016
difference liabilities difference liabilities
Non identical control
enterprise merger assets 73,142,728 11,277,482
appraisal value added
Changes in fair value of
available-for-sale
financial assets
Depreciation of fixed
231,919,490 45,456,220 248,051,984 52,277,180
assets
Total 305,062,218 56,733,702 248,051,984 52,277,180
(3) The net balances of deferred tax assets or liabilities
Unit: RMB
Off-set amount of Closing balance of Off-set amount of Opening balance of
deferred income tax deferred income tax deferred income tax deferred income tax
Item
assets and liabilities at assetsor liabilities after assets and liabilities at assetsor liabilities after
the period-end off-set the period-beginning off-set
Deferred tax assets 36,395,246 103,666,023 42,745,608 110,336,216
Deferred tax liabilities 36,395,246 20,338,456 42,745,608 9,531,572
(4) Details of unrecognised deferred income tax assets
Unit: RMB
Item Closing balance Opening balance
Deductible temporary differences
Deductible losses 77,770,054 7,554,574
Total 77,770,054 7,554,574
(5) Deductible losses of unrecognized deferred income tax assets will due the following years
Unit: RMB
Year Closing balance Opening balance Note
Year of 2016 5,224,377 5,224,377
Year of 2020 2,330,197 2,330,197
Year of 2021 70,215,480
Total 77,770,054 7,554,574 --
103
CSG Semi-annual Report 2016
17. Other non-current assets
Unit: RMB
Item Closing balance Opening balance
Prepayment for engineering equipment and
91,381,154 58,073,451
software upgrading
Prepayment of land premium 6,510,000 6,510,000
Total 97,891,154 64,583,451
18. Short-term loans
(1) Categories of short-term loans
Unit: RMB
Item Closing balance Opening balance
Pledge loan
Mortgage loan
Guaranteed loan 285,750,757 122,998,916
Unsecured loan 549,100,250 193,327,754
Short-term finance bonds (ii) 400,000,000 1,000,000,000
Ultra-short-term finance bonds (iii) 2,800,000,000 1,900,000,000
Total 4,034,851,007 3,216,326,670
(i) As at 30 June 2016, short-term loans of certain subsidiaries of the Company amounting to RMB 215,750,757 (31 December 2015:
RMB 122,998,916) were guaranteed by the Company. It didn’t exist that the minority shareholders of the subsidiaries provided a
back to back guarantee to the Company. (31 December 2015: nil).
(ii)Approved by file No. [2014]CP11 of Inter Bank Market Trading Association, the Company is entitled to issue short-term financing
bonds with the limit of RMB 1,100,000,000, which expires on 14 January 2016.
The Company issued short-term financing bonds of RMB 600,000,000 on 24 April 2015 for the first time in 2015. The bonds above
matured on 23 April 2016, with an annual interest rate of 4.28%. Up to the disclosure date of this fincial statement, the bonds above
have been repaid.
The Company issued short-term financing bonds of RMB 400,000,000 on 18 September 2015 for the second time in 2015. The bonds
above matured on 17 September 2016, with an annual interest rate of 3.5%.
(iii) Approved by file No. [2015]SCP163 of Inter Bank Market Trading Association, the Company is entitled to issue untra-short-term
financing bonds with the limit of RMB 4,000,000,000, which expires on 28 May 2017.
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CSG Semi-annual Report 2016
The Company issued untra-short-term financing bonds of RMB 800,000,000 on 15 June 2015 for the first time in 2015. The bonds
above matured on 11 March 2016, with an annual interest rate of 4.25%. Up to the disclosure date of this fincial statement, the bonds
above have been repaid.
The Company issued untra-short-term financing bonds of RMB 1,100,000,000 on 15 October 2015 for the second time in 2015. The
bonds above matured on 11 July 2016, with an annual interest rate of 3.81%. Up to the disclosure date of this fincial statement, the
bonds above have been repaid.
The Company issued untra-short-term financing bonds of RMB 800,000,000 on 11 March 2016 for the first time in 2016. The bonds
above matured on 6 December 2016, with an annual interest rate of 3.15%.
The Company issued untra-short-term financing bonds of RMB 900,000,000 on 19 May 2016 for the second time in 2016. The bonds
above matured on 13 February 2017, with an annual interest rate of 4.18%.
(iv) As at 30 June 2016, the interest of short-term borrowings varied from 2.70% to 5.06% (31 December 2015: 2.99% to 5.35 %).
19. Notes payable
Unit: RMB
Category Closing balance Opening balance
Trade acceptance
Bank acceptance notes 6,014,869 8,000,000
Total 6,014,869 8,000,000
20. Accounts payable
(1)Particulars of accounts payable
Unit: RMB
Item Closing balance Opening balance
Account payable for materials 623,653,165 463,007,059
Account payable for equipments 246,679,408 254,823,632
Account payable for constructions 194,470,527 128,382,224
Account payable for freight 36,465,642 35,445,881
Account payable for water and electricity 30,363,218 26,077,686
Others 5,052,754 7,529,569
Total 1,136,684,714 915,266,051
105
CSG Semi-annual Report 2016
(2) Significant accounts payable due for over one year
Unit: RMB
Item Closing balance Unpaid reason
As the construction work had not passed
Account payable for construction and
173,040,403 the final acceptance test yet, the balance
equipments.
was not yet settled.
Total 173,040,403 --
21. Advances from customers
(1) List of advance from customers
Unit: RMB
Item Closing balance Opening balance
Advances from customers 148,319,760 117,434,636
Total 148,319,760 117,434,636
22. Employee benefits payable
(1) List of Employee benefits payable
Unit: RMB
Items Opening balance Increased this term Decreased this term Closing balance
I. Short-term employee
170,538,391 489,013,082 519,788,052 139,763,421
benefits
II. Welfare after
departure- defined 1,222 43,691,696 43,233,818 459,100
contribution plans
Total 170,539,613 532,704,778 563,021,870 140,222,521
(2) List of short-term employee benefits
Unit: RMB
Items Opening balance Increased this term Decreased this term Closing balance
1. Wages and salaries, bonuses,
118,460,821 399,909,037 424,593,730 93,776,128
allowances and subsidies
2.Employee services and benefits
3. Social security contributions 688 17,554,753 17,331,984 223,457
106
CSG Semi-annual Report 2016
Including: Medical insurance 547 14,605,546 14,408,646 197,447
Work injury insurance 110 1,942,962 1,927,527 15,545
Maternity insurance 31 1,006,245 995,811 10,465
4. Housing funds 2,153,760 20,234,106 20,405,201 1,982,665
5.Labour union funds and
14,483,122 7,565,186 5,257,137 16,791,171
employee education funds
6. Short-term paid absences
7. Short-term profit sharing plan
Management bonus for
35,440,000 43,750,000 52,200,000 26,990,000
performance
Total 170,538,391 489,013,082 519,788,052 139,763,421
(3) List of defined contribution plans payable
Unit: RMB
Items Opening balance Increased this term Decreased this term Closing balance
1. Basic pensions 1,051 41,066,343 40,629,829 437,565
2. Unemployment insurance 171 2,625,353 2,603,989 21,535
3. Enterprise annuity payment
Total 1,222 43,691,696 43,233,818 459,100
According to the decision of the fifth meeting of the seventh session of the board of directors held on 31 March 2015, the Board
approved that it will appraise the management team based on quarterly net assets income rate and reward the management team by
taking quarterly total net profit after tax as the base. The Group withheld management performance award of RMB 43,750,000
(Jan.-Jun. 2015: nil).
23. Tax payable
Unit: RMB
Item Closing balance Opening balance
Value-added-tax payable 46,225,543 31,442,580
Corporate income tax payable 24,137,275 71,805,502
Individual income tax payable 5,588,188 2,252,413
Urban maintenance and construction tax 1,982,575 1,602,050
Urban maintenance and construction tax 8,136,991 7,134,641
Education surcharge 2,230,791 1,976,366
107
CSG Semi-annual Report 2016
Others 4,619,489 3,612,625
Total 92,920,852 119,826,177
24. Interest payable
Unit: RMB
Item Closing balance Opening balance
Interest payable for long-term borrowings 2,134,414 920,625
Interest for corporate bonds 37,309,995 10,660,000
Interest payable for short-term borrowings 2,394,930 1,124,981
The debt of preference shares/perpetual
bonds classified as financial liabilities
Medium-term notes 56,232,000 27,622,300
Short-term financing bonds 11,000,000 21,611,000
Ultra-short-term financing bonds 43,256,249 27,424,900
Others
Total 152,327,588 89,363,806
25. Other account payable
(1) List of other account payable by nature
Unit: RMB
Item Closing balance Opening balance
Guarantee deposits received from
53,960,007 55,047,908
construction contractors
Accrued cost of business and expensure 93,212,777 37,260,225
Temporary receipts 20,052,365 24,660,996
Payable for contracted labour costs 13,518,479 13,675,896
Deposit for disabled 4,893,292 4,509,243
Withholding individual income tax 5,189,272
Government interest free loans 5,000,000
Others 8,915,099 7,866,787
Total 204,741,291 143,021,055
26. Non-current liabilities due within one year
Unit: RMB
108
CSG Semi-annual Report 2016
Item Closing balance Opening balance
Long-term borrowing due within 1year 217,500,000 239,000,000
Bonds payable due within 1year
Long-term accounts payable within one
year
Total 217,500,000 239,000,000
27. Other current liability
Unit: RMB
Items Closing balance Opening balance
Short-term bonds payable
Others 300,000 300,000
Total 300,000 300,000
28. Long-term borrowings
(1) Categories of long-term borrowings
Unit: RMB
Items Closing balance Opening balance
Pledge loan
Mortgage loan
Guaranteed loan 202,000,000
Unsecured loan
Medium-term notes 1,200,000,000 1,200,000,000
Total 1,402,000,000 1,200,000,000
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 2016, the interest of long term borrowings varied from 4.75% to 4.94% (31 December 2015: 4.94%).
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CSG Semi-annual Report 2016
29. Bonds payable
(1) Bonds payable
Unit: RMB
Items Closing balance Opening balance
Corporate bonds 1,000,000,000 1,000,000,000
Total 1,000,000,000 1,000,000,000
30. Deferred revenue
Unit: RMB
Items Opening balance Increased this term Decreased this term Closing balance reason
Government grants 383,599,103 80,057,829 25,090,452 438,566,480
Total 383,599,103 80,057,829 25,090,452 438,566,480 --
Government grants are analysed below:
Unit: RMB
Included in
Increase in Other Closing Related to assets
Item in debt Opening balance non-business
current period changes balance or income
income
Tianjin CSG Golden Sun Project
60,466,903 1,687,446 58,779,457 Related to assets
(i)
Dongguan CSG Golden Sun
48,830,250 1,375,500 47,454,750 Related to assets
Project (ii)
Hebei CSG Golden Sun Project
49,500,000 1,375,000 48,125,000 Related to assets
(iii)
Xianning CSG Golden Sun
54,043,917 1,515,250 52,528,667 Related to assets
Project (iv)
Infrastructure compensation for
Wujiang CSG Glass Co., Ltd 47,711,973 2,020,769 45,691,204 Related to assets
(v)
Qingyuan Energy-saving project
24,700,000 205,833 24,494,167 Related to assets
(vi)
Yichang Polisilicon products
27,421,875 1,406,250 26,015,625 Related to assets
project (vii)
Yichang CSG silicon slice
15,118,343 600,000 630,914 15,087,429 Related to assets
auxiliary project (viii)
Sichuan energy-saving glass 13,783,500 827,010 12,956,490 Related to assets
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CSG Semi-annual Report 2016
project (ix)
Group coating film experimental
10,543,800 754,380 9,789,420 Related to assets
project (x)
Shenzhen Display Technology
190,129 51,097,829 50,907,700 Related to assets
Co., Ltd. project(xi)
Related to assets
31,478,542 28,360,000 13,101,971 46,736,571
Others and income
Total 383,599,103 28,960,000 25,090,452 51,097,829 438,566,480 --
(i)The allowance was granted by Tianjin Municipal Government. The allowance was used for establishing PV power station by
Tianjin CSG Architectural Glass Co., Ltd. ("Tianjin project"). The facilities belonged to Tianjin CSG upon completion. The
allowance will be credited to income statement in 20 years, the useful life of the PV power station.
(ii)The allowance was granted by Dongguan Municipal Government. The allowance was used for establishing PV power station by
Dongguan CSG Architectural Glass Co., Ltd. ("Dongguan project") The facilities belonged to Dongguan CSG upon completion. The
allowance will be credited 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 by
Hebei CSG Glass Co., Ltd. ("Hebei project"). When the facilities were set up, they belonged to Hebei CSG. The allowance will be
credited 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 by
Xianning CSG Glass Co Ltd. ("Xianning project"). The facilities belonged to Xianning CSG upon completion. The allowance will be
credited to income statement 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 income
statement 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 estalish high
performance ultra-thin electronic glass production lines by Qingyuan CSG. The Project was under construction.
(vii)The balance represented amounts granted to Yi Chang CSG Polyilicon Materials Co., Ltd. (“Yichang Silicon”) by Yichang City
Dongshan Development Corporation under the provisions of the investment contract signed between the Group and the Municipal
Government of Yi Chang. The proceeds were designed for the construction of electricity transformer and the pipelines. Yichang
Silicon is entitled to the ownership 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 Polyilicon from the acquiring of the assets and liabilities of
Crucible project of Yichang Hejing Photoelectric Ceramic Co., Ltd. The proceeds would be amortised and credited to income
statement by 15 years after related assets were put into use.
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CSG Semi-annual Report 2016
(ix)It represented the funds granted by Chengdu local government for energy glass project. It will be amortised and credited to
income statement in 15 years, in accordance with the minimum operating period committed by the Group.
(x)The allowance was granted by Shenzhen City Development and Reform Commission for the development of Group Coating Film
experimental project. The grant will be amortised and credited to income statement by 20 years in the estimated useful life of the
relevant fixed assets.
(xi) It presented changes in consolidation scope. Shenzhen Display Technology Co., Ltd. was included in the consolidation scope of
the Company, thereby leading to an increase in the deferred income of Shenzhen Display Technology Co., Ltd. project.
31. Share Capital
Unit: RMB
Changed in the report period (+,-)
Opening Closing
Issuing of new Transferred
balance Bonus shares Others Sub-total balance
shares from reserves
Total of capital
2,075,335,560 2,075,335,560
shares
32. Capital surplus
Unit: RMB
Items Opening balance Increased this term Decreased this term Closing balance
Capital premium 1,345,264,670 1,345,264,670
Other capital surplus -83,873,398 262,668 1,172,480 -84,783,210
Total 1,261,391,272 262,668 1,172,480 1,260,481,460
The reason for the decrease of Capital reserve - other in current year is the acquisition of minority interest, with the detail as follows:
(i)On 1 January 2016, the Company purchased 25% of the equities of Yingde Quartz Sand Processing Co., Ltd., the subsidiary of the
Company, from Guangdong Guanda Petrifaction Co., Ltd. The share transfer procedures were completed on 8 January 2016, and the
Company thus held 100% equities of Yingde quartz sand processing Co., Ltd. The adjustment to capital surplus due to such transaction
is set out as below:
Acquisition cost－
Cash paid for acquisition of minority interests 4,250,000
Less: Share of identifiable net assets in the subsidiary continually calculated at the proportion of 3,077,520
increased part of shares which the Company is entitled to as of the date of consolidation
Decrease capital surplus of the Group's consolidated statements 1,172,480
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CSG Semi-annual Report 2016
33. Other comprehensive income
Unit: RMB
Occuring in current period
Less: Amount
transferred into
Amount profit and loss in the
Opening Less: After-tax After-tax Closing
Item incurred current period that
balance income attribute to attribute to balance
before recognized into
tax the parent minority
income other
expense company shareholder
tax comprehensive
income in prior
period
II. Other comprehensive income can
not be reclassified into profit and loss
in future
II. Other comprehensive income
reclassified into profit and loss in 2,967,772 508,053 508,053 3,475,825
future
Including: the share of other
comprehensive income which is
reclassified into profit and loss in
future by invested unit under the
equity method
Gains or losses arising from changes
in fair value of available-for-sale
financial assets
Investments held to maturity
reclassified as available for sale
financial assets gains and losses
Effective part of cash flow hedging
profit and loss
Differences on translation of foreign
417,772 508,053 508,053 925,825
currency financial statements
Finance incentives for energy and
2,550,000 2,550,000
technical transformation
Total of other comprehensive income 2,967,772 508,053 508,053 3,475,825
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CSG Semi-annual Report 2016
34. Special reserves
Unit: RMB
Items Opening balance Increased this term Decreased this term Closing balance
Safety production cost 15,437,498 3,465,325 5,136,607 13,766,216
Total 15,437,498 3,465,325 5,136,607 13,766,216
35. Surplus reserves
Unit: RMB
Items Beginning of term Increased this term Decreased this term End of term
Statutory surplus reserve 754,119,762 754,119,762
Discretionary surplus reserve 127,852,568 127,852,568
Reserve fund
Venture expansion fund
Others
Total 881,972,330 881,972,330
Statement on surplus reserves:
According to the PRC Corporation Law and the regulation of the Company, the Company must accrue statutory surplus reserve at the
amount of 10% of the net profit until when the accumulated statutory surplus reserve reached at least 50% of the capital. After the
Company obtained the approval from shareholders’ meeting, the statutory surplus reserve can be used to make up the loss, or to
increase the capital. The Company didn’t accrue statutory surplus reserve in the report period. (2015: as accrued statutory surplus
reserve at the amount of 10%, RMB 51,199,599 in total).
The appropriation to discretion surplus reserve shall be proposed by the board of the directors of the Company and approved by the
annual general meeting of the shareholders. The discretion can be utilized to offset the deficit or increase the share capital. The
Company did not appropriate to discretion surplus reserve during the report period.
36. Retained earnings
Unit: RMB
Items The current period The same period of last year
Retained earnings at the end of last year before
3,637,206,565 4,101,320,834
adjustment
Retained earnings at the beginning of this year
3,637,206,565 4,101,320,834
after adjustment
Add: net profits belonging to equity holders of the
466,883,254 205,767,344
Company
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CSG Semi-annual Report 2016
Less: Dividends payable 622,600,668 1,037,667,780
Retained earnings in the end 3,481,489,151 3,269,420,398
List of adjustment of opening retained profits:
1) RMB 0 opening retained profits was affected by retrospective adjustment conducted according to the Accounting Standards for
Business Enterprises and relevant new regulations.
2) RMB 0 opening retained profits was affected by changes on accounting policies.
3) RMB 0 opening retained profits was affected by correction of significant accounting errors.
4) RMB 0 opening retained profits was affected by changes in combination scope arising from same control.
5) RMB 0 opening retained profits was affected totally by other adjustments.
37. Revenue and cost
Unit: RMB
Occurred in current term Occurred in previous term
Item
Revenue Cost Revenue Cost
Revenue from main operations 4,184,209,383 3,052,534,128 3,288,940,455 2,633,737,214
Revenue from other operations 43,956,259 24,284,375 34,099,047 12,283,496
Total 4,228,165,642 3,076,818,503 3,323,039,502 2,646,020,710
38. Tax and surcharge
Unit: RMB
Items Occurred in current term Occurred in previous term
Business tax 138,749 46,887
City maintenance and construction tax 12,602,639 6,011,224
Educational surcharge 10,367,308 5,740,579
Others 275,976 349,544
Total 23,384,672 12,148,234
39. Selling Expenses
Unit: RMB
Items Occurred in current term Occurred in previous term
Freight expenses 59,381,190 61,321,659
Employee benefits 43,288,837 45,338,403
Entertainment expenses 5,179,120 6,054,706
Travelling expenses 4,811,124 5,361,529
Vehicle use fee 3,414,236 3,684,785
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CSG Semi-annual Report 2016
Rental expenses 2,588,324 2,727,898
General office expenses 2,001,995 2,273,989
Compensation 415,313 1,129,260
Depreciation expenses 506,576 619,699
Others 6,978,116 7,950,590
Total 128,564,831 136,462,518
40. Administrative Expenses
Unit: RMB
Items Occurred in current term Occurred in previous term
Employee benefits 113,606,280 61,211,246
Research and development expenses 143,909,198 118,636,645
Taxation Expenses 27,705,569 26,466,641
Depreciation expenses 10,839,919 12,191,437
General office expenses 10,148,252 10,083,571
Amortisation of intangible assets 16,315,423 16,350,879
Water and electricity expense 5,086,006 3,926,447
Canteen costs 3,667,235 3,103,106
Travelling expenses 4,446,174 3,140,356
Rental expenses 1,403,376 2,436,882
Vehicle use fee 2,527,549 2,259,201
Entertainment expenses 3,889,174 3,007,056
Labour unior funds 4,948,671 5,447,319
Others 10,444,680 14,107,303
Total 358,937,506 282,368,089
41. Finance Expenses
Unit: RMB
Items Occurred in current term Occurred in previous term
Loan interest 134,008,214 142,044,190
Less: interest in construction in progress 6,183,391 14,279,994
Interest expenses 127,824,823 127,764,196
Amortization of corporate bond issue costs 2,631,954
Less: Interest income 3,301,921 1,390,764
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CSG Semi-annual Report 2016
Exchange losses 4,217,530 -280,387
Others 4,612,961 4,017,465
Total 133,353,393 132,742,464
42. Asset impairment loss
Unit: RMB
Items Occurred in current term Occurred in previous term
I. Provision for bad debts -878,514 4,759,309
2. Provision for inventory depreciation -46,858
Total -925,372 4,759,309
43. Investment income
(1) Details of investment income
Unit: RMB
Items Occurred in current term Occurred in previous term
long-term equity investment accounted by equity method -14,264,359 -14,452,010
Gain from disposal of equity interests 66,812
Cash dividend earned during the holding period of
60,372
available-for-sale financial assets
Gain from disposal of available-for-sale financial assets 56,779,276
Total -14,264,359 42,454,450
44. Non-operating income
Unit: RMB
Occurred in current Occurred in previous Amount of non-recurring gain and loss
Items
term term included in the report period
Total of gains from disposal of
248,642 2,675,438 248,642
non-current assets
Incl.：Gain on disposal of fixed assets 248,642 2,675,438 248,642
Government grants 47,606,029 42,944,737 47,606,029
Compensation income 462,552 547,445 462,552
Funds unpayable 171,592 26,682,486 171,592
Others 1,549,549 3,305,865 1,549,549
Total 50,038,364 76,155,971 50,038,364
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CSG Semi-annual Report 2016
Government grants included in current profit and loss:
Unit: RMB
Items Occurred in current term Occurred in previous term Related to assets or income
Government grants amortization 25,090,452 26,540,323 Related to assets and income
Industry supporting fund 17,039,604 10,000,000 Related to income
Subsidies for research and development 4,132,899 2,316,000 Related to income
Interest subsidies for technical
1,991,455 Related to income
transformation
Advanced energy saving 940,000 Related to income
Government awards fund 1,146,074 912,399 Related to income
Energy saving subsidy 30,000 Related to income
Others 167,000 244,560 Related to income
Total 47,606,029 42,944,737 --
45. Non-operating expenses
Unit: RMB
Amount of non-recurring
Occurred in previous
Items Occurred in current term gain and loss included in
term
the report period
Total of loss from disposal of non-current assets 19,984 18,755 19,984
Incl. Loss from disposal of fixed assets 19,984 18,755 19,984
Loss from disposal of intangible assets
Loss from debt restructuring
Loss from non monetary assets exchange
Donation 40,000 1,000 40,000
Loss on compensations 407,332 2,981 407,332
Others 194,312 2,796 194,312
Total 661,628 25,532 661,628
46. Income tax expenses
(1) List of income tax expenses
Unit: RMB
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CSG Semi-annual Report 2016
Items Occurred in current term Occurred in previous term
Current income tax 57,280,962 34,915,839
Deferred income tax 20,562,202 -28,389,192
Total 77,843,164 6,526,647
(2) Adjustment process of accounting profit and income tax expense
Unit: RMB
Items Occurred in current term
Total profit 543,144,486
Current income tax expense accounted by tax and relevant regulations 74,775,115
Influence of different tax rates on subsidiaries 129,949
Influence of the adjustment of previous term -15,303,517
Influence of income not subject to tax
Costs, expenses and losses not deductible for tax purposes 687,747
Influence of use of deductible losses on early unrecognized deferred
income tax assets
Influence of deductible temporary difference or deductible losses of
17,553,870
unrecognized deferred income tax assets
Income tax expenses 77,843,164
47. Other comprehensive income
The details can be found at Note VII (33).
48. Items of the cash flow statement
(1)Cash received relating to other operating activities
Unit: RMB
Items Occurred in current term Occurred in previous term
Interest income 3,301,921 1,390,764
Government grant 22,515,577 16,404,414
Others 20,291,438 18,633,458
Total 46,108,936 36,428,636
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CSG Semi-annual Report 2016
(2)Cash paid relating to other operating activities
Unit: RMB
Items Occurred in current term Occurred in previous term
Transportation expense 61,146,471 73,203,113
Canteen cost 19,735,042 16,993,798
Office expenses 13,568,857 14,119,050
R&D fees 19,470,201 15,487,820
Travelling expenses 11,839,397 10,250,438
Entertainment expenses 10,603,096 8,785,380
Vehicle use fee 7,147,877 6,215,840
Repairing fees 6,426,568 3,870,337
Rental expenses 4,439,417 4,011,703
Insurance expenses 4,823,957 8,317,028
Financing Commission 4,612,961 4,017,465
Others 59,101,076 65,483,675
Total 222,914,920 230,755,647
(3)Cash received relating to other investing operating activities
Unit: RMB
Items Occurred in current term Occurred in previous term
Government grants received relating to assets 3,600,000 8,290,000
Received deposit and margin 1,509,515
Collection trusted 11,239,200
Received repayment 14,860,684
Total 29,699,884 9,799,515
(4)Cash paid relating to other investing activities
Unit: RMB
Items Occurred in current term Occurred in previous term
Payment for Shenzhen CSG 4,209,881
Payment for collection trusted 15,300,000
Payment for deposit and margin 6,464,586
Total 21,764,586 4,209,881
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CSG Semi-annual Report 2016
(5)Cash received relating to other financing activities
Unit: RMB
Items Occurred in current term Occurred in previous term
Received return money from the original
88,567,811
affiliated company Shenzhen CSG Display
Collection of income tax of dividends of
7,289,494 19,650,025
A-share & B-share
Received deposit and margin 4,868,673
Total 100,725,978 19,650,025
(6)Cash paid relating to other financing activities
Unit: RMB
Items Occurred in current term Occurred in previous term
Cash paid for financing lease of the
original affiliated company Shenzhen 109,125,965
CSG Display
Cash paid for Commission fee of
2,158,619
borrowing and bills
Total 109,125,965 2,158,619
49. Supplement notes of cash flow statement
(1) Supplement notes of cash flow statement
Unit: RMB
Supplementary Info. Amount of this term Amount of last term
1. Net profit adjusted to cash flow of business operation -- --
Net profit 465,301,322 220,596,420
Add: Provisions for assets impairment -925,372 4,759,309
Depreciation of fixed assets,
413,138,016 392,866,394
gas and petrol depreciation production goods depreciation
Amortisation of intangible assets 16,315,423 16,350,879
Amortisation of long-term deferred expenses
Losses on disposal of fixed assets , intangible assets and
other long-term assets -228,658 -2,656,683
(“-“ for gains)
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CSG Semi-annual Report 2016
Losses on write-off of fixed assets (“-“ for gains)
Loss from fair value change (“-“ for gains)
Finance expenses
127,824,823 130,396,150
(“-“ for gains)
Investment
14,264,359 -42,454,450
loss(“-“ for gains)
Decrease in deferred tax assets
21,032,799 -4,058,450
(“-“ for increase)
Increase of deferred income tax liability (“-“ for decrease) -470,597 -24,330,742
Decrease of inventory (“-“ for increase) -9,920,347 -105,151,274
Decrease of operational receivable items (“-“ for
-30,401,660 -250,156,934
increase)
Increase of operational payable items (“-“ for decrease) 30,790,241 16,403,201
Others
Net cash flow generated by business operation 1,046,720,349 352,563,820
2. Major investment and financing operation not
-- --
involving with cash
Conversion of debt into capital
Convertible corporate bonds maturing within one year
Fixed assets under financing lease
3. Net change of cash and cash equivalents -- --
Balance of cash at period end 404,710,155 183,519,648
Less: Initial balance of cash 574,744,877 156,838,260
Add: Balance of cash equivalents at period end
Less: Initial balance of cash equivalents
Net increasing of cash and cash equivalents -170,034,722 26,681,388
(2) Net cash paid for acquision of subsidiaries
Unit: RMB
Amount
Cash and cash equivalents paid for business combination 566,345,956
Including: --
Shenzhen Display Company 464,345,956
Xianning Fengwei Company 102,000,000
Less: Cash or cash equivalents held by subsidiary on the date of acquisition 58,371,857
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CSG Semi-annual Report 2016
Including: --
Shenzhen Display Company 23,408,888
Xianning Fengwei Company 34,962,969
Add: Cash or cash equivalents paid in the period that occurred during the previous
period
Including: --
net cash paid for acquisition of subsidiaries 507,974,099
(3) Formation of cash and cash equivalents
Unit: RMB
Items Closing balance Opening balance
I. Cash 404,710,155 574,744,877
Incl: Cash on hand 20,027 20,172
Cash at bank without restriction 404,598,881 574,654,753
others without restriction 91,247 69,952
III. Balance of cash and cash equivalents at
404,710,155 574,744,877
th end of the period
50. Assets of ownership or use right restricted
Unit: RMB
Item Ending book value Reason for restriction
It’s the Company’s guarantee deposit for the application of opening letter of
Monetary fund 5,446,558
credit and loan from the bank, which was restricted monetary fund.
Total 5,446,558 --
51. Foreign currency monetary items
(1) Foreign currency monetary items
Unit: RMB
Closing balance of foreign Closing
Item Exchange rate
currency balance convert to RMB
Cash at bank and on hand -- -- 35,130,998
Incl: USD 5,078,572 6.6312 33,677,026
EUR 2,991 7.3750 22,059
HKD 1,574,467 0.8547 1,345,697
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CSG Semi-annual Report 2016
AUD 17,434 4.9452 86,215
JPY 16 0.0645 1
Accounts receivable -- -- 96,202,915
Incl: USD 13,454,635 6.6312 89,220,376
EUR 946,785 7.3750 6,982,539
HKD
Long-term borrowings -- --
Incl: USD
EUR
HKD
Short-term borrowings 64,102,500
Incl: HKD 75,000,000 0.8547 64,102,500
Accounts payable 41,619,183
Incl: USD 4,577,814 6.6312 30,356,400
EUR 1,281,526 7.3750 9,451,254
JPY 28,081,659 0.0645 1,811,267
HKD 307 0.8547 262
(2) Description of overseas operating entities, including important overseas operating entities which should
be disclosed the main overseas business places, the recording currency and the choice basis, as well as the
reason for change of the recording currency if applicable.
□Applicable √ Not applicable
VIII. Changes in the scope of consolidation
1. The business combinations not under the same control
(1) The business combinations not under the same control occurred in the period
Unit: RMB
Net profit
proporti Icome from
from acquiree
Day for Costs of on of Way of acquiree from
Name of Acquisitio Confirm gist of acquisition from
equity equity equity equity acquisition
acquiree n date date acquisition
acquisition acquisition acquisiti acquisition date to the
date to the
on period end
period end
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CSG Semi-annual Report 2016
Has signed an irrevocable
Shenzhen
equity transfer agreement,
Display 2016-6-3 464,345,956 16.10% Acquisition 2016-6-3 37,282,745 -4,023,839
and the transfer procedures
Company(i)
have been completed
Has signed an irrevocable
Xianning
equity transfer agreement,
Fengwei 2016-6-20 102,000,000 100% Acquisition 2016-6-20 118,606 -69,473
and the transfer procedures
Company
have been completed
(i) The assessments of identifiable assets, liabilities and the fair value of contingent liabilities are still ongoing.
(2) Combination costs and goodwill
Unit: RMB
Combination costs
--Cash 566,345,956
-- Fair value of non-cash assets
-- Fair value of debt issued or undertaken
-- Fair value of equity securities issued
-- Fair value of contingent consideration
-- The fair value of the shares held prior on acquisition date 654,027,035
-- Others
Total of combination costs 1,220,372,991
Less: Fair value share of identifiable net assets acquired 501,023,656
Goodwill / combination costs less than the amount of the fair value
719,349,335
share of the identifiable net assets acquired
The goodwill increased in this period was due to the equity of Shenzhen display purchased by the Group which was originally
calculated by equity method, was combined the statements of the Group after acquisition.
(3) Identifiable assets, liabilities of acquire on the acquisition date
Unit: RMB
Fair value on the acquisition date Book value on the acquisition date
Assets:
Cash at bank and on hand 62,752,438 62,752,438
Accounts receivable 168,777,955 148,777,955
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CSG Semi-annual Report 2016
inventories 51,219,234 51,219,234
Fixed assets 798,763,091 803,538,448
Intangilble assets 233,292,879 160,150,151
Other current assets 116,507,764 116,507,764
Other non-current assets 263,156,779 263,154,976
Liabilities:
Borrowings 564,000,000 564,000,000
Accounts payable 123,361,603 123,361,603
Deferred tax liabilities 11,277,482
Employee benefits payable 9,403,298 9,403,298
Other liabilities 225,007,101 225,007,101
Net assets 761,420,656 684,328,964
Less: Minority interest 260,397,000
Net assets aquired 501,023,656
IX. Interest in other entities
1. Interest in subsidiary
(1) Composition of the Group
Shareholding (%) Way of
Name of subsidiary Major business location Place of registration Scope of business
Direct Indirect acquicition
Development, production and
Chengdu CSG Glass Co., Ltd. Chengdu, the PRC Chengdu, the PRC 75% 25% Establishment
sales of specialized glass
Development, production and
Sichuan CSG Energy Conservation Chengdu, the PRC Chengdu, the PRC sales of specialized glass and 75% 25% Split-off
processed glass
Development, production and
Tianjin Energy Conservation Glass Co. Ltd Tianjin, the PRC Tianjin, the PRC sales of specialized 75% 25% Establishment
energy-efficient glass
Dongguan CSG Architectural Glass Co., Ltd. Dongguan, the PRC Dongguan, the PRC Glass deep processing 75% 25% Establishment
Production and sales of solar
Dongguan CSG Solar Glass Co., Ltd. Dongguan, the PRC Dongguan, the PRC 75% 25% Establishment
glass
Production and sales of
Dongguan CSG PV-tech Co., Ltd. Dongguan, the PRC Dongguan, the PRC high-tech green cell products 100% Establishment
and modules
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CSG Semi-annual Report 2016
Production and sales of High
Yichang CSG Polysilicon Co., Ltd. Yichang, the PRC Yichang, the PRC 75% 25% Establishment
purity silicon materials
Wujiang CSG North-east Architectural Glass
Wujiang, the PRC Wujiang, the PRC Glass deep processing 75% 25% Establishment
Co., Ltd.
Production and sales of
Hebei CSG Glass Co., Ltd. Yongqing, the PRC Yongqing, the PRC 75% 25% Establishment
specialized glass
Production and sales of
Wujiang CSG Glass Co., Ltd. Wujiang, the PRC Wujiang, the PRC 100% Establishment
specialized glass
Trading and investment
China Southern Glass (Hong Kong) Limited Hong Kong Hong Kong 100% Establishment
holding
Production and sales of
Hebei Panel Glass Co., Ltd. Yongqing, the PRC Yongqing, the PRC 100% Establishment
ultra-thin electronic glass
Production and sales of
Xianning CSG Glass Co Ltd. Xianning, the PRC Xianning, the PRC 75% 25% Establishment
specialized glass
Xianning CSG Energy Conservation Glass Co
Xianning, the PRC Xianning, the PRC Glass deep processing 75% 25% Split-off
Ltd.
Qingyuan CSG Energy Saving New Materials Production and sales of
Qingyuan, the PRC Qingyuan, the PRC 100% Establishment
Co.,Ltd ultra-thin electronic glass
Shenzhen CSG Financial Leasing Co., Ltd. Shenzhen, the PRC Shenzhen, the PRC Financing lease business 75% 25% Establishment
Production and sales of silica
Jiangyou CSG Mining Develop Co.Ltd. Jiangyou, the PRC Jiangyou, the PRC 100% Establishment
and by-products
Investment & development of
Shenzhen CSG PV Energy Co., Ltd. Shenzhen, the PRC Shenzhen, the PRC 100% Establishment
solar PV plant
Development of new clean
Qingyuan New Energy Co., Ltd. Qingyuan, the PRC Qingyuan, the PRC energy, photovoltaic power 100% Establishment
generation
Development of new clean
Suzhou PV Co., Ltd. Wujiang, the PRC Wujiang, the PRC energy, photovoltaic power 100% Establishment
generation
Development of new clean
Wujiang New Energy Co., Ltd. Wujiang, the PRC Wujiang, the PRC energy, photovoltaic power 100% Establishment
generation
Shenzhen CSG Display Technology Co., Ltd. Shenzhen, the PRC Shenzhen, the PRC Glass for display device 60.80% Acquisition
Photoelectric glass and
Xianning Fengwei Technology Co., Ltd. Xianning, the PRC Xianning, the PRC 37.50% 62.50% Acquisition
high-alumina glass
(2)The significant non-fully-owned subsidiaries of the Group
Unit: RMB
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CSG Semi-annual Report 2016
Total profit or loss Dividends distributed
Shareholding Minority interest
attributable to minority to minority interests
Subsidiaries of minority as at 30 June
shareholders for the year for the year ended 30
shareholders 2016
ended 30 June 2016 June 2016
Shenzhen CSG Display Technology Co., Ltd. 39.20% -1,577,345 258,417,917
(3) The major financial information of the significant non-fully-owned subsidiaries of the Group
Unit: RMB
Closing balance
Name of Subsidiary Current Non-current Current Non-current Total
Total assets
assets assets liabilities liabilities liabilities
Shenzhen CSG Display Technology Co., Ltd. 292,871,526 1,310,752,576 1,603,624,102 486,724,451 412,137,964 898,862,415
Unit: RMB
Occurred in current period
Name of Subsidiary Total comprehensive Cash flows from
Revenue Net profit
income operating activities
Shenzhen CSG Display Technology Co., Ltd. 37,282,745 -4,023,839 -4,023,839 19,571,109
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 and
liquidity risk. The Group's overall risk management programme focuses on the unpredictability of financial markets and seeks to
minimise potential adverse effects on the Group's financial performance.
(1) Market risk
(a) Foreign exchange risk
The Group’s major operational activities are carried out in Mainland China and a majority of the transactions are denominated in
RMB. However, some of the export business is settled in foreign currency. Besides, the Group is exposed to foreign exchange risk
arising from the recognised assets and liabilities, and future transactions denominated in foreign currencies, primarily with respect to
US dollars and Euro. The Group monitors the scale of foreign currency transactions, foreign currency assets and liabilities, and adjust
settlement currency of export business, to furthest reduce the currency risk.
As at 30 June 2016, the carrying amounts in RMB equivalent of the Group’s assets and liabilities denominated in foreign currencies
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CSG Semi-annual Report 2016
are summarized below:
30 June 2016
USD HKD Others Total
Financial assets denominated in foreign currency-
Cash at bank and on hand 33,677,026 1,345,697 108,275 35,130,998
Receivables 89,220,376 - 6,982,539 96,202,915
122,897,402 1,345,697 7,090,814 131,333,913
Financial liabilities denominated in foreign
currency-
Short-term borrowings - 64,102,500 - 64,102,500
Payables 30,356,400 262 11,262,521 41,619,183
30,356,400 64,102,762 11,262,521 105,721,683
31 December 2015
USD HKD Others Total
Financial assets denominated in foreign currency-
Cash at bank and on hand 58,954,550 1,867,518 87,409 60,909,477
Receivables 75,590,699 - 8,639,719 84,230,418
134,545,249 1,867,518 8,727,128 145,139,895
Financial liabilities denominated in foreign
currency-
Short-term borrowings 54,674,443 144,939,400 - 199,613,843
Payables 25,061,069 - 11,688,767 36,749,836
79,735,512 144,939,400 11,688,767 236,363,679
As at 30 June 2016, 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 7,865,985 (31 December 2015: approximately
RMB 4,659,000) lower/ higher for various financial assets and liabilities denominated in USD.
As at 30 June 2016, 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 4,706,780 (31 December 2015: approximately
RMB 10,730,000) 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 rates
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CSG Semi-annual Report 2016
expose 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 2016 31 December 2015
Debt at fixed rates 2,200,000,000 2,200,000,000
Debt at variable rates 202,000,000 -
2,402,000,000 2,200,000,000
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 a
material 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 and
other receivables, etc.
The Group expects that there is no significant credit risk associated with cash at bank since they are deposited at state-owned banks
and 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 notes
receivable. The Group assesses the credit quality of and sets credit limits on its customers by taking into account their financial
position, the availability of guarantee from third parties, their credit history and other factors such as current market conditions. The
credit history of the customers is regularly monitored by the Group. In respect of customers with a poor credit history, the Group will
use written payment reminders, or shorten or cancel credit periods, to ensure the overall credit risk of the Group is limited to a
controllable extent.
(3) Liquidity risk
Cash flow forecasting is performed by each subsidiary of the Group and aggregated by the Group’s finance department in its
headquarters. 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 committed
borrowing facilities from major financial institutions so that the Group does not breach borrowing limits or covenants on any of its
borrowing facilities to meet the short-term and long-term liquidity requirements.
As at 30 June 2016, the Group had net current liabilities of approximately RMB 3.8 billion and committed capital expenditures of
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CSG Semi-annual Report 2016
approximately RMB 185 million. Management will implement the following measures to ensure the liquidation risk limited to a
controllable 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 undiscounted
contractual cash as follows:
30 June 2016
Within 1 year 1 to 2 years 2 to 5 years Over 5 years Total
Short-term borrowings 4,103,055,502 - - - 4,103,055,502
Notes payable 6,014,869 - - - 6,014,869
Accounts payable 1,136,684,714 - - - 1,136,684,714
Interest payable 152,327,588 - - - 152,327,588
Other payables 204,741,291 - - - 204,741,291
Non-current liabilities due 219,170,229 - 219,170,229
within one year -
Long-term borrowings 68,875,000 180,085,904 1,354,871,342 - 1,603,832,246
Bonds payable 53,300,000 1,015,990,005 - - 1,069,290,005
5,944,169,193 1,196,075,909 1,354,871,342 - 8,495,116,444
31 December 2015
Within 1 year 1 to 2 years 2 to 5 years Over 5 years Total
Short-term borrowings 3,269,572,568 - - - 3,269,572,568
Notes payable 8,000,000 - - - 8,000,000
Accounts payable 915,266,051 - - - 915,266,051
Interest payable 89,363,806 - - - 89,363,806
Other payables 143,021,055 - - - 143,021,055
Non-current liabilities due 244,191,152 - - - 244,191,152
within one year
Long-term borrowings 59,280,000 59,280,000 1,350,217,700 - 1,468,777,700
Bonds payable 53,300,000 1,042,640,000 - - 1,095,940,000
4,781,994,632 1,101,920,000 1,350,217,700 - 7,234,132,332
XI. Disclosure of fair value
1. Fair value of financial assets and financial liabilities not measured at fair value
Except for financial liabilities listed below, the carrying amount of the other financial assets and liabilities not measured at fair value
is a reasonable approximation of their fair value.
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CSG Semi-annual Report 2016
30 June 2016 31 December 2015
Carrying amount Fair value Carrying amount Fair value
Government interest free loans 5,000,000 4,791,567 - -
Bonds payable 1,000,000,000 1,021,500,000 1,000,000,000 1,010,820,000
Medium-term notes 1,200,000,000 1,257,000,000 1,200,000,000 1,209,940,000
2,205,000,000 2,283,291,567 2,200,000,000 2,220,760,000
The fair values of bonds payables and medium-term notes are the present value of the contractually determined stream of future cash
flows at the rate of interest applied at that time by the market to instruments of comparable credit status and providing substantially
the same cash flows on the same terms, which belong to Level 3.
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 at Note IX (1).
3. Related transaction
(1) Transaction of acquisition of goods, offering and reception of labor service
List of selling goods/offering labor service
Unit: RMB
Related party Contents of related transaction Occurred in this term Occurred in previous term
Shenzhen CSG Display Technology Co., Ltd. sales of ultra-thin glass 9,665,275 12,418,959
(2) Related lease
The Company as the Lessor:
Unit: RMB
Rental income recognized Rental income recognized in
Lessee Type of leased asset
in this term previous term
Shenzhen CSG Display Technology Co., Ltd. plant 0 456,000
132
CSG Semi-annual Report 2016
4. Receivables and payables of related parties
(1) Receivables
Unit: RMB
Closing balance Opening balance
Item Related party Book bad debt Book bad debt
balance provision balance provision
Accounts receivable Shenzhen CSG Display Technology Co., Ltd. 7,943,674 158,874
Other receivables Shenzhen CSG Display Technology Co., Ltd. 90,436,480 1,808,730
Long-term accounts receivable Shenzhen CSG Display Technology Co., Ltd. 50,104,299
Advance payment Shenzhen CSG Display Technology Co., Ltd. 9,869,906
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 balance
sheet are as follows:
30 June 2016 31 December 2015
Buildings,machinery and equipment 184,759,614 144,047,573
XIV. Other significant events
1. Segment information
(1) Definition foundation and accounting policy of segment
The reportable segments of the Group are the business units that provide different products or service. As different businesses require
different technologies and marketing strategies, the Group, therefore, separately manages the production and operation of each
reportable segment and evaluates their operating results respectively, in order to make decisions about resources to be allocated to
these segments and to assess their performance.
The Group identified 4 reportable segments as follows:
- Flat glass segment, being engaged in the production and sales of float glass products, solar glass and silica sand required
for the production of flat glass
- Architectural glass segment, being engaged in the production and sales of architectural glass products
- Solar Energy Segment, being engaged in the production and sales of polysilicon and solar modules
- Electronic glass and display Segment, being engaged in the production and sales of ultrathin electronic glass and display
products
Inter-segment transfer prices are measured by reference to selling prices to third parties.
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CSG Semi-annual Report 2016
(2)Financial information of segment
Unit: RMB
Item Flat glass Achitectural glass Electronic glass and display Solar Energy Others Unallocated Elimination Total
Revenue from external customers 1,569,190,818 1,313,419,965 89,705,909 1,254,771,556 1,077,394 4,228,165,642
Inter-segment revenue 331,251,736 14,512,339 441,603 9,852,847 -356,058,525
Interest income 245,769 120,297 165,001 110,328 377 2,660,149 3,301,921
Interest expenses 48,166,542 21,983,427 4,378,627 42,079,363 11,216,864 127,824,823
Investment income from associates
-14,264,359 -14,264,359
and joint ventures
Asset impairment reversal -484,161 966,852 19,085 343,094 -1,770,242 -925,372
Depreciation and amortization
165,735,865 121,825,383 21,492,358 117,196,746 67,315 3,135,772 429,453,439
expenses
Total profit 243,308,785 161,890,177 -4,637,123 231,614,313 -115,730 -88,089,559 -826,377 543,144,486
Income tax expenses 34,154,099 11,564,684 -1,238,295 33,408,528 -45,852 77,843,164
Net profit 209,154,686 150,325,493 -3,398,828 198,205,785 -115,730 -88,043,707 -826,377 465,301,322
Total assets 5,305,425,738 3,427,381,344 2,761,735,400 4,327,181,813 843,476 1,152,653,639 16,975,221,410
Total liabilities 708,595,560 759,800,557 911,239,665 507,671,391 2,502,814 6,104,977,551 8,994,787,538
Additions of non-current assets
other than long-term equity 113,842,091 18,398,826 1,233,608,186 262,223,558 3,591,957 1,631,664,618
investments
134
CSG Semi-annual Report 2016
(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 as
follows:
Revenue from external customers Jan.-Jun. 2016 Jan.-Jun. 2015
Mainland 3,742,134,566 3,014,978,672
Hong Kong 46,568,633 4,678,449
Europe 34,282,849 37,623,285
Asia (other than Mainland and Hong Kong) 316,839,177 222,259,536
Australia 19,557,991 33,265,222
North America 64,008,117 8,601,218
Other region 4,774,309 1,633,120
4,228,165,642 3,323,039,502
Total non-current assets 30 June 2016 31 December 2015
Mainland 14,524,914,560 13,136,296,789
Hong Kong 12,619,932 12,669,672
14,537,534,492 13,148,966,461
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
Closing balance Openning balance
Bad debt Bad debt
Book balance Book balance
Categories provision provision
Book value Book value
Propor Amou Propor Propor Propor
Amount Amount Amount
tion % nt tion % tion % tion %
Other accounts
receivable with
large amount and
provided bad debt
provisions
individually
135
CSG Semi-annual Report 2016
Other accounts
receivable
withdrawn bad
debt provision 3,918,271,786 100% 6,317 0% 3,918,265,469 4,285,491,595 100% 1,776,559 0% 4,283,715,036
according to credit
risks
characteristics
Other accounts
receivable with
small amount but
provided bad debt
provisions
individually
Total 3,918,271,786 100% 6,317 0% 3,918,265,469 4,285,491,595 100% 1,776,559 0% 4,283,715,036
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 percentage basis
√ Applicable □ Non-applicable
Unit: RMB
Closing balance
Name of portfolio
Other receivable accounts Bad debt provision proportion%
portfolio 1 315,834 6,317 2%
portfolio 2 3,917,955,952 0 0%
Total 3,918,271,786 6,317 0%
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 the reversed or collected part during the report period was of RMB 1,770,242.
(3) Other accounts receivable classified by the nature of accounts
Unit: RMB
Nature of accounts Ending book balance Beginning book balance
Accounts receivable of related party 3,917,955,952 4,285,231,188
Others 315,834 260,407
Total 3,918,271,786 4,285,491,595
136
CSG Semi-annual Report 2016
(4) Top 5 of the closing balance of the other accounts receivable collated according to the arrears party
Unit: RMB
Proportion of the total Closing
Nature of
Name of the company Closing balance Ages year end balance of the balance of bad
accounts
accounts receivable (%) debt provision
Yichang CSG Polysilicon Co., Ltd. Subsidiary 1,523,963,984 Within 1 year 39% 0
Wujiang CSG Glass Co., Ltd. Subsidiary 425,262,011 Within 1 year 11% 0
Qingyuan CSG Energy Conservation Subsidiary
269,043,219 7% 0
New Meterials Co., Ltd. Within 1 year
Xianning CSG Glass Co., Ltd. Subsidiary 252,311,567 Within 1 year 6% 0
Chengdu CSG Glass Co., Ltd. Subsidiary 248,993,313 Within 1 year 6% 0
Total -- 2,719,574,094 -- 69%
2. Long-term equity investment
Unit: RMB
Closing balance Opening balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
4,051,657,80
Investment in subsidiaries 5,003,091,791 15,000,000 4,988,091,791 4,066,657,802 15,000,000
2
Investment in joint venture and
286,119,936 286,119,936
associated enterprise
4,337,777,73
Total 5,003,091,791 15,000,000 4,988,091,791 4,352,777,738 15,000,000
8
(1) Inventment in subsidiaries
Unit: RMB
Provision for Closing
Opening Increase in Decrease Closing impairment of balance of
Invested company
balance the term in the term balance the current impairment
period provision
Chengdu CSG Glass Co., Ltd. 76,674,073 70,005,000 146,679,073
Sichuan CSG Energy Conservation Glass Co
115,290,583 115,290,583
Ltd.
Tianjin Energy Conservation Glass Co., Ltd 242,902,974 242,902,974
Dongguan CSG Architectural Glass Co., Ltd. 193,618,971 193,618,971
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CSG Semi-annual Report 2016
Dongguan CSG Solar Glass Co., Ltd. 349,446,826 349,446,826
Yichang CSG Polysilicon Co., Ltd. 632,958,044 632,958,044
Wujiang CSG North-east Architectural Glass
251,313,658 251,313,658
Co., Ltd.
Hebei CSG Glass Co., Ltd. 261,998,368 261,998,368
China Southern Glass (Hong Kong) Limited 85,742,211 85,742,211
Wujiang CSG Glass Co., Ltd. 562,179,564 562,179,564
Hebei Panel Glass Co., Ltd. 243,062,801 243,062,801
Jiangyou CSG Mining Develop Co.Ltd. 100,725,041 100,725,041
Xianning CSG Glass Co Ltd. 177,041,818 177,041,818
Xianning CSG Energy Conservation Glass Co
161,281,576 161,281,576
Ltd.
Qingyuan CSG Energy Conservation New
300,185,609 300,185,609
Materials Co.,Ltd.
Shenzhen CSG Financial Leasing Co., Ltd. 45,000,000 67,500,000 112,500,000
Shenzhen CSG PV Energy Co., Ltd. 100,000,000 100,000,000
Shenzhen CSG Display Technology Co., Ltd. 760,678,989 760,678,989
Xianning Feiwei Technology Co., Ltd. 38,250,000 38,250,000
Others 167,235,685 167,235,685 15,000,000
Total 4,066,657,802 936,433,989 5,003,091,791 15,000,000
(2) Investment in joint venture
Unit: RMB
Increase/decrease
Gains and
Closing
losses
Adjustme Cash Withdraw balance
Additio recognize
Opening Reduced nt of Changes bonus or al of Closing of
Investee nal d under
balance investmen other of other profits impairme Other balance impairme
investm the equity
t comprehe equity announce nt nt
ent method
nsive d to issue provision provision
income
I. Joint ventures
II. Associated enterprises
Shenzhen
286,119,936 9,850,045 363,052 -296,333,033 0
CSG
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CSG Semi-annual Report 2016
Display
Technolo
gy Co.,
Ltd
Subtotal 286,119,936 9,850,045 363,052 -296,333,033 0
Total 286,119,936 9,850,045 363,052 -296,333,033 0
(3) Other notes
Subsidiaries (continuation)
As at June 30, 2016, 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 as
an increase of costs of Long-term equity investment for subsidiaries by RMB 108,672,269(31 December 2015: RMB 96,884,696).
The subsidiaries which have made provision for impairment were basically closed down in the previous year, and the provision for
impairment 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
Occurred in this term Occurred in previous term
Item
Income Costs Income Costs
Main business
Other business 1,077,394 60,334
Total 1,077,394 60,334
4. Investment income
Unit: RMB
Item Occurred in this term Occurred in previous term
Long-term equity investment accounted by cost method 389,430,562 495,382,766
Long-term equity investment accounted by equity method 9,850,045 -14,452,010
Investment income accounted by disposal of long-term equity investment -128,814
Investment income earned during the holding period of available-for-sale
60,372
financial assets
Investment income gained from disposal of equity interests 55,257,044
Total 399,280,607 536,119,358
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CSG Semi-annual Report 2016
XVI. Supplementary Information
1. Items and amounts of extraordinary profit (gains)/loss
√Applicable □ Not applicable
Unit: RMB
Item Amount Note
Gains/losses from the disposal of non-current asset (including the write-off that accrued for impairment
228,658
of assets)
Governmental subsidy reckoned into current gains/losses (not including the subsidy enjoyed in quota
47,606,029
or ration according to national standards, which are closely relevant to enterprise’s business)
Other non-operating income and expenditure except for the aforementioned items 1,542,049
Less: Impact on income tax 7,452,914
Impact on minority shareholders’ equity (post-tax) -1,436,049
Total 43,359,871 --
Explain reasons for the extraordinary profit (gain)/loss defined by Q&A Announcement No.1 on Information Disclosure for
Companies Offering Their Securities to the Public --- Extraordinary Profit/loss, and the items defined as recurring profit (gain)/loss
according to the lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies
Offering Their Securities to the Public --- Extraordinary Profit/loss.
□Applicable √ Not applicable
2. Return on equity and earnings per share
The weighted Earnings per share
Profit in the report period average net basic earnings per diluted earnings per
assets ratio share (RMB/share) share (RMB/share)
Net profit attributable to shareholders of the listed company(RMB) 5.99% 0.22 0.22
Net profit attributable to shareholders of the listed company after
5.43% 0.20 0.20
deducting non-recurring gains and losses(RMB)
3. Difference of accounting data under domestic and overseas accounting standards
(1) Differences of the net profit and net assets disclosed in financial report prepared under international
and Chinese accounting standards
□ Applicable √ Not applicable
(2) Difference of the net profit and net assets disclosed in financial report prepared under overseas and
Chinese accounting standards
□ Applicable √ Not applicable
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CSG Semi-annual Report 2016
Section IX. 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, C.F.O
and person in charge of financial organization;
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 of
CSG Holding Co., Ltd.
16 August 2016
141
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