CSG Holding Co., Ltd.
Audit Report
Grant Thornton Zhitong Certified Public Accountants LLP
Table of Contents
Audit Report 1–7
Consolidated and Company Balance Sheets 1-4
Consolidated and Company Income Statements 5-7
Consolidated and Company Statements of Cash Flows 8-9
Consolidated and Company Statement of Changes in Equity 10–13
Notes to the Financial Statements 14–107
Grant Thornton Zhitong Certified Public
Accountants LLP
No. 22 Jianguomenwai Avenue, Chaoyang
District, Beijing, China
Avenue, Chaoyang District, Beijing, China
Tel: +86 10 8566 5588
Fax: +86 10 8566 5120
www.grantthornton.cn
Audit Report
GTCNSZ（2026）NO.441A015902
To All Shareholders of CSG Holding Co., Ltd.:
I. Audit Opinion
We have audited the financial statements of CSG Holding Co., Ltd. (hereinafter referred to
as “the Group”), including the consolidated and company balance sheets as of December 31,
statements, and consolidated and company statements of changes in equity for the year ended
December 31, 2025; and the related notes to the financial statements.
In our opinion, the accompanying financial statements have been prepared in all material
respects in accordance with the Chinese Accounting Standards for Business Enterprises and
present fairly the consolidated and company financial position of the Group as of December 31,
ended December 31, 2025.
II. Basis for the Audit Opinion
We conducted our audit in accordance with the Chinese Standards on Auditing. The
section of the audit report titled “The Auditor’s Responsibilities for the Audit of Financial
Statements” further describes our responsibilities under these standards. In accordance
with the Code of Professional Ethics for Certified Public Accountants of China and the
Independence Requirements for Public Interest Entities under the Independence Standards
for Certified Public Accountants of China, we are independent of the Group and have
fulfilled our other ethical responsibilities.We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our audit opinion.
III. Key Audit Matters
Key audit matters are those matters that, based on our professional judgment, we consider
to be of the most significance to the audit of the current period’s financial statements. The
treatment of these matters is in the context of our audit of the financial statements as a
whole and the formation of our audit opinion; we do not express a separate opinion on
these matters.
(I) Revenue Recognition
For related disclosures, please refer to Notes 3.26 and 5.42 to the financial statements.
The Group’s revenue primarily derives from the provision of float glass, photovoltaic glass,
architectural glass, solar industry-related products, electronic glass, and display devices to
customers. As revenue is one of the Group’s key performance indicators and has a
significant impact on the financial statements, we have identified revenue recognition as a
key audit matter.
We performed the following audit procedures primarily regarding revenue recognition:
(1) We obtained an understanding of and evaluated the design of internal controls related
to revenue recognition and tested the operating effectiveness of key control processes;
(2) We reviewed a sample of significant sales contracts, identified contract terms and
conditions related to the timing of the transfer of control of the products, and assessed
whether the Group’s specific revenue recognition methods comply with the provisions of
Chinese Accounting Standards for Business Enterprises;
(3) We performed substantive analysis procedures on operating revenue and gross profit
margin by month, product, and customer to identify any significant or unusual fluctuations
and analyze the causes of such fluctuations;
(4) Selected a sample to perform detailed testing of revenue recognized during the current
period; reviewed sales contracts; verified supporting documentation related to revenue
recognition (including purchase orders, delivery receipts, customs declarations, and
invoices); and, in conjunction with customer payment status, verified the authenticity and
accuracy of the revenue;
(5) Select clients using sampling methods and perform confirmation procedures on their
annual transaction amounts and accounts receivable balances;
(6) Perform cut-off tests on revenue recognized before and after the balance sheet date,
obtain relevant supporting documents, and verify key timing points for revenue recognition
to determine whether revenue was recognized in the appropriate period;
(7) Examine whether information related to revenue has been appropriately presented and
disclosed in the financial statements.
(II) Provision for Impairment of Fixed Assets and Construction in Progress
For related disclosures, please refer to Notes 3, 16, 17, and 22 to the financial statements,
as well as Notes 5, 12, 13, and 52.
As of December 31, 2025, the carrying amount of fixed assets in the Group’s consolidated
financial statements was RMB 13,897,777,933, accounting for 44.39% of total assets in the
consolidated financial statements;The carrying amount of construction in progress was
RMB 4,420,551,577, representing 14.12% of total assets in the consolidated financial
statements; asset impairment losses recognized for fixed assets during the reporting period
amounted to RMB 58,043,358, while asset impairment losses for construction in progress
totaled RMB 105,283,872.The management of the Group (hereinafter referred to as
“management”) assessed whether there were any indications of impairment for these fixed
assets and construction in progress; for fixed assets and construction in progress where
impairment indicators were identified, management determined the amount of impairment
provisions to be recognized by estimating the recoverable amounts of the fixed assets and
construction in progress and comparing those recoverable amounts with their carrying
amounts.Since the identification of impairment indicators for fixed assets and construction
in progress and the measurement of their recoverable amounts involve significant
accounting estimates and professional judgment by management, we have identified the
provision for impairment of fixed assets and construction in progress as a key audit matter.
We performed the following audit procedures primarily regarding the provision for
impairment of fixed assets, construction in progress:
(1) We obtained an understanding of and evaluated the design of internal controls related
to the management of fixed assets, construction in progress, and other related activities,
and tested the operating effectiveness of key control processes;
(2) We reviewed the methods and assumptions used by the Group for impairment testing of
fixed assets and construction in progress, and evaluated whether the asset impairment
methods applied by management comply with the requirements of Chinese Accounting
Standards for Business Enterprises;
(3) We conducted physical counts of fixed assets and construction in progress to observe
their storage and usage conditions;
(4) Recalculated the recoverable amounts of fixed assets and construction in progress, and
had the valuation experts of the certified public accountants review the valuation methods
and key assumptions used by the external valuation firm engaged by management;
(5) Evaluate the competence, professional qualifications, and objectivity of the valuation
experts engaged by management and the valuation experts from the certified public
accounting firm.
IV. Other Information
The Group’s management is responsible for the other information. The other information
includes the information contained in the Group’s 2025 Annual Report, but excludes the
financial statements and our audit report.
Our audit opinion on the financial statements does not cover the other information, and we
do not express any form of assurance conclusion regarding the other information.
In connection with our audit of the financial statements, our responsibility is to read the
other information and, in doing so, consider whether the other information is materially
inconsistent with the financial statements or with our knowledge obtained during the audit,
or appears to be subject to a material misstatement.
Based on the work we have performed, if we determine that the other information contains
a material misstatement, we are required to report that fact. In this regard, we have nothing
to report.
V. Responsibilities of Management and Those Charged with Governance for the Financial
Statements
The Group's management is responsible for preparing the financial statements in
accordance with the provisions of the Chinese Accounting Standards for Business
Enterprises so that they present a true and fair view, and for designing, implementing, and
maintaining the necessary internal controls to ensure that the financial statements are free
from material misstatement due to fraud or error.
In preparing the financial statements, management is responsible for assessing the
Group’s ability to continue as a going concern, disclosing matters related to going concern,
and using the going concern assumption, unless management plans to liquidate the Group,
discontinue operations, or has no other realistic alternative.
Those charged with governance are responsible for overseeing the Group’s financial
reporting process.
VI. The Certified Public Accountant’s Responsibilities for the Audit of the Financial Statements
Our objective is to obtain reasonable assurance about whether the financial statements as
a whole are free from material misstatement due to fraud or error, and to issue an audit
report that includes an audit opinion.Reasonable assurance is a high level of assurance,
but it does not guarantee that an audit conducted in accordance with auditing standards
will always detect a material misstatement. Misstatements may result from fraud or error,
and are generally considered material if it can be reasonably expected that the
misstatement, individually or in the aggregate, could influence the economic decisions of
users of the financial statements.
In conducting the audit in accordance with auditing standards, we exercise professional
judgment and maintain professional skepticism. We also perform the following procedures:
(1) Identify and assess the risks of material misstatement of the financial statements due to
fraud or error; design and perform audit procedures to address these risks; and obtain
sufficient and appropriate audit evidence as a basis for expressing an audit opinion.
Because fraud may involve collusion, forgery, intentional omissions, misrepresentations, or
circumvention of internal controls, the risk of failing to detect a material misstatement
resulting from fraud is higher than the risk of failing to detect a material misstatement
resulting from error.
(2) Obtain an understanding of internal controls relevant to the audit in order to design
appropriate audit procedures.
(3) Evaluate the appropriateness of management’s selection of accounting policies and the
reasonableness of management’s accounting estimates and related disclosures.
(4) Form a conclusion regarding the appropriateness of management’s use of the going
concern assumption. At the same time, based on the audit evidence obtained, form a
conclusion regarding whether there is material uncertainty related to matters or conditions
that may cast significant doubt on the Group’s ability to continue as a going concern. If we
conclude that material uncertainty exists, auditing standards require us to draw users’
attention in the audit report to the related disclosures in the financial statements; if the
disclosures are inadequate, we are required to issue a non-unqualified opinion.Our
conclusions are based on information available as of the date of this audit report. However,
future events or conditions may cause the Group to cease to be a going concern.
(5) Evaluate the overall presentation, structure, and content of the financial statements,
and assess whether the financial statements fairly present the relevant transactions and
events.
(6) Obtain sufficient and appropriate audit evidence regarding the financial information of
the entities or business activities within the Group to express an opinion on the financial
statements. We are responsible for directing, overseeing, and performing the Group audit,
and we bear full responsibility for the audit opinion.
We communicated with those charged with governance regarding the planned scope and
timing of the audit, as well as significant audit findings, including internal control
deficiencies of significance that we identified during the audit.
We also provided a statement to those charged with governance regarding our compliance
with ethical requirements related to independence and communicated with those charged
with governance regarding all relationships and other matters that could reasonably be
considered to affect our independence, as well as the related safeguards.
From the matters communicated with those charged with governance, we determine which
are most significant to the audit of the current financial statements and thus constitute key
audit matters. We describe these matters in our audit report, unless public disclosure is
prohibited by law or regulation, or in rare circumstances where we reasonably expect that
the adverse consequences of communicating a matter in the audit report would outweigh
the benefits to the public interest, in which case we determine that the matter should not be
communicated in the audit report.
Grant Thornton Zhitong Certified Public Accountants Certified Public
LLP Accountant of China
(Engagement Partner)
Beijing, China Certified Public
Accountant of China
April 24, 2026
Consolidated Balance Sheet
Prepared by: CSG Holding Co., Ltd.
December 31, 2025
Unit: Yuan
Item Ending Balance Beginning Balance
Current Assets:
Cash and Cash Equivalents 3,141,975,147 3,421,527,482
Financial assets held for trading 230,000,000 96,000,000
notes receivable 1,420,061,226 1,140,902,743
accounts receivable 1,802,165,051 1,686,627,681
Receivables financing 533,418,878 798,603,111
Prepayments 134,771,994 121,708,264
Other receivables 54,386,121 165,872,735
inventories 1,969,149,555 1,587,828,028
assets held for sale 5,262,859
Other current assets 474,226,753 475,617,056
Total current assets 9,765,417,584 9,494,687,100
Non-current assets:
investment properties 286,145,387 293,712,453
fixed assets 13,897,777,933 13,166,391,449
construction in progress 4,420,551,577 5,350,375,132
right-of-use assets 64,277,229 64,804,837
intangible assets 2,238,041,467 2,361,275,093
goodwill 3,039,946 8,593,352
Deferred expenses 68,644,513 71,254,985
deferred tax assets 368,236,650 309,995,066
Other non-current assets 192,896,549 99,328,456
Total non-current assets 21,539,611,251 21,725,730,823
Total Assets 31,305,028,835 31,220,417,923
Current Liabilities:
short-term borrowings 1,158,648,329 1,163,021,299
Notes Payable 2,557,712,651 2,244,413,755
accounts payable 2,769,745,963 3,092,025,797
contract liabilities 369,377,265 354,215,784
employee compensation payable 329,941,978 347,769,466
taxes payable 73,812,602 73,688,362
Other payables 369,513,739 312,816,531
Of which: Interest payable 13,362,151 8,946,479
Dividends payable 34,482,724
Non-current liabilities due within one year 1,881,828,060 2,168,856,957
Item Ending Balance Beginning Balance
Other current liabilities 320,616,877 218,529,333
Total Current Liabilities 9,831,197,464 9,975,337,284
Non-current liabilities:
long-term borrowings 6,882,862,147 6,151,608,472
Lease liabilities 23,057,883 21,650,607
Long-term payables 594,270,580 464,617,473
provisions 27,378,869 13,137,220
deferred income 301,071,111 487,252,038
deferred tax liabilities 90,503,199 104,170,857
Total non-current liabilities 7,919,143,789 7,242,436,667
Total Liabilities 17,750,341,253 17,217,773,951
Equity:
share capital 3,070,692,107 3,070,692,107
capital surplus 590,739,414 590,739,414
Less: Treasury stock 296,770,027
other comprehensive income 150,816,908 159,726,269
Special reserve 6,302,910 5,079,628
surplus reserve 1,534,714,228 1,485,514,182
retained earnings 8,088,993,418 8,224,198,195
Total equity attributable to the parent company 13,145,488,958 13,535,949,795
non-controlling interests 409,198,624 466,694,177
Total equity 13,554,687,582 14,002,643,972
Total Liabilities and Equity 31,305,028,835 31,220,417,923
Legal Representative: Head of Accounting: Head of Accounting Department：
Parent Company Balance Sheet
Unit: Yuan
Item Ending Balance Opening Balance
Current Assets:
Cash and Cash Equivalents 742,484,026 1,434,524,102
Financial assets held for trading 230,000,000 96,000,000
notes receivable 212,074,929 2,300,715
accounts receivable 274,825,872 110,153,840
Receivables financing 675,552 82,269,158
Prepayments 8,411,632 758,454
Other receivables 2,852,499,592 2,342,796,700
Of which: Dividends receivable 27,873,015
Other current assets 397,702 3,123,645
Total current assets 4,321,369,305 4,071,926,614
Non-current assets:
long-term equity investment 10,537,821,440 10,550,321,440
fixed assets 5,042,527 6,747,771
intangible assets 12,221,050 11,870,899
Long-term deferred expenses 4,303,187 3,920,072
Other non-current assets 64,131,973 5,383,326
Total non-current assets 10,623,520,177 10,578,243,508
Total Assets 14,944,889,482 14,650,170,122
Current Liabilities:
short-term borrowings 315,000,000 335,000,000
Notes Payable 238,668,124 336,581,197
accounts payable 351,782,190 196,674,995
employee compensation payable 37,636,173 41,561,327
taxes payable 1,909,891 4,552,018
Other payables 2,457,593,966 3,050,996,384
Of which: Interest payable 6,917,879 2,298,742
Non-current liabilities due within one year 453,730,000 711,705,100
Other current liabilities 183,557,629
Total current liabilities 4,039,877,973 4,677,071,021
Non-current liabilities:
long-term borrowings 2,620,480,000 1,500,750,000
deferred income 171,375,000
Total non-current liabilities 2,620,480,000 1,672,125,000
Total Liabilities 6,660,357,973 6,349,196,021
Equity:
share capital 3,070,692,107 3,070,692,107
Item Ending Balance Opening Balance
capital surplus 741,824,399 741,824,399
Less: Treasury stock 296,770,027
surplus reserve 1,549,259,588 1,500,059,542
retained earnings 3,219,525,442 2,988,398,053
Total Equity 8,284,531,509 8,300,974,101
Total Liabilities and Equity 14,944,889,482 14,650,170,122
Legal Representative: Head of Accounting: Head of Accounting Department:
Consolidated Income Statement
Unit: Yuan
Item 2025 2024
I. Total Operating Revenue 13,718,969,008 15,455,386,401
Of which: Operating Revenue 13,718,969,008 15,455,386,401
II. Total Operating Costs 13,633,173,718 14,862,498,173
Of which: Operating cost 11,714,880,100 12,848,639,959
taxes and surcharges 146,502,109 137,971,275
selling expenses 294,891,682 289,402,862
general and administrative expenses 740,357,271 791,021,833
research and development expenses 519,332,680 611,497,261
financial expenses 217,209,876 183,964,983
Of which: Interest expense 247,130,850 240,388,865
Interest income 40,278,639 55,326,006
Plus: Other income 170,024,549 221,848,074
Investment income (losses indicated with a "?") -11,090,098 -1,604,000
Gain (loss) from changes in fair value (enter "-" for a loss) -9,045,057 -491,578
Credit impairment losses (losses are indicated with a "-" sign) 52,872,082 24,154,920
Asset impairment losses (losses are reported with a "-" sign) -256,359,957 -581,082,224
Gain (Loss) on Disposal of Assets (Losses are indicated by a "-") 19,981,685 42,232,656
III. Operating Profit (Losses are indicated with a “-”) 52,178,494 297,946,076
Plus: Non-operating income 58,384,012 19,908,997
Less: Non-operating expenses 11,487,439 26,948,172
IV. Total Profit (Total Loss to be entered with a "?" sign) 99,075,067 290,906,901
Less: Income tax expense -6,259,072 43,306,358
V. Net Profit (Net Loss to be reported with a "-" sign) 105,334,139 247,600,543
(1) Classified by going concern
(2) By ownership
VI. Net other comprehensive income, net of tax -8,909,361 -17,658,202
Net other comprehensive income attributable to owners of the parent, net of
-8,909,361 -17,658,202
tax
(a) Other comprehensive income reclassified to profit or loss -8,909,361 -17,658,202
Net amount of other comprehensive income attributable to minority interest,
net of tax
VII. Total Comprehensive Income 96,424,778 229,942,341
Item 2025 2024
Total comprehensive income attributable to owners of the parent 116,758,930 249,114,116
Total comprehensive income attributable to minority interest -20,334,152 -19,171,775
VIII. Earnings Per Share
(1) Basic earnings per share 0.04 0.09
(2) Diluted earnings per share 0.04 0.09
Legal Representative: Head of Accounting: Head of Accounting Department:
Parent Company Income Statement
Unit: Yuan
Item 2025 2024
I. Operating Revenue 272,627,090 338,675,178
Less: Operating Cost
taxes and surcharges 2,227,280 3,110,286
selling expenses 22,244,989 36,103,577
general and administrative expenses 224,450,483 236,019,621
financial expenses 42,528,084 27,592,321
Of which: Interest expense 80,193,334 67,179,991
Interest income 39,247,416 44,163,444
Plus: Other income 1,155,778 1,227,264
Investment income (losses indicated with a "?") 458,624,665 777,558,451
Credit impairment losses (losses indicated with a "-") 51,268,965 96,963
Gain (loss) on disposal of assets (enter loss with a "-" sign) 44,956 28,478
II. Operating Profit (Losses are indicated with a “-”) 492,270,618 814,760,529
Add: Non-operating income 101,239 41,107
Less: Non-operating expenses 371,400 292,800
III. Total Profit (Total Loss to be entered with a "?" sign) 492,000,457 814,508,836
Less: Income tax expense
IV. Net Profit (Net Loss to be entered with a “?” sign) 492,000,457 814,508,836
(1) Net Profit from a Going Concern (Net loss is indicated by
a “?”)
(2) Net profit from discontinued operations (net loss indicated
by “?”)
V. Total Comprehensive Income 492,000,457 814,508,836
Legal Representative: Head of Accounting: Head of Accounting Department:
Consolidated Statement of Cash Flows
Unit: Yuan
Item 2025 2024
I. Cash Flows from Operating Activities:
Cash received from sales of goods and provision of services 13,859,258,880 16,772,575,368
Tax refunds received 47,741,989 47,831,532
Cash received from other operating activities 194,572,414 271,579,331
Subtotal of cash inflows from operating activities 14,101,573,283 17,091,986,231
Cash paid for purchases of goods and services 10,037,324,214 11,950,326,730
Cash paid to employees and on behalf of employees 1,911,922,057 2,158,941,445
Taxes and fees paid 590,584,111 705,238,646
Cash paid for other operating activities 415,195,604 520,555,761
Subtotal of cash outflows from operating activities 12,955,025,986 15,335,062,582
Net cash flow from operating activities 1,146,547,297 1,756,923,649
II. Cash Flows from Investing Activities:
Cash received from recovery of investments 4,480,254,000 572,800,000
Cash received from investment income 5,797,199 6,336,869
Net cash recovered from the disposal of fixed assets, intangible assets, and
other long-term assets
Subtotal of cash inflows from investing activities 4,523,304,897 656,732,339
Cash paid for the acquisition of fixed assets, plant, and equipment, intangible
assets, and other long-term assets
Cash paid for investments 4,708,224,786 555,254,000
Cash paid for other items related to investing activities 73,284,281 46,621,319
Subtotal of cash outflows from investing activities 5,804,789,630 2,940,324,884
Net cash flow from investing activities -1,281,484,733 -2,283,592,545
III. Cash Flows from Financing Activities:
Cash received from borrowings 5,370,286,999 3,458,878,582
Cash received from other financing activities 374,424,862 458,231,000
Subtotal of cash inflows from financing activities 5,744,711,861 3,917,109,582
Cash paid for repayment of debt 5,028,438,537 1,917,891,123
Cash paid for dividends, profits, or interest 480,764,742 1,050,959,870
Of which: dividends and profits paid by subsidiaries to minority shareholders 2,678,677
Cash paid for other financing activities 489,057,426 113,846,515
Subtotal of cash outflows from financing activities 5,998,260,705 3,082,697,508
Net cash provided by financing activities -253,548,844 834,412,074
IV. Effect of Exchange Rate Changes on Cash and Cash Equivalents 1,783,217 8,868,553
V. Net Increase in Cash and Cash Equivalents -386,703,063 316,611,731
Plus: Beginning balance of cash and cash equivalents 3,367,873,386 3,051,261,655
VI. Cash and cash equivalents at end of period 2,981,170,323 3,367,873,386
Parent Company Cash Flow Statement
Unit: Yuan
Item 2025 2024
I. Cash Flows from Operating Activities:
Cash received from sales of goods and provision of services 945,335,244 1,576,769,823
Cash received from other operating activities 26,227,706 45,079,422
Subtotal of cash inflows from operating activities 971,562,950 1,621,849,245
Cash paid for purchases of goods and services 610,142,805 1,232,373,179
Cash paid to employees and for employee-related expenses 213,448,516 259,676,303
Taxes and other payments 15,812,845 20,843,382
Cash paid for other items related to operating activities 72,339,689 173,275,473
Subtotal of cash outflows from operating activities 911,743,855 1,686,168,337
Net cash flow from operating activities 59,819,095 -64,319,092
II. Cash Flows from Investing Activities:
Cash received from recovery of investments 4,469,000,000 470,000,000
Cash received from investment income 434,875,633 912,151,446
Net cash recovered from the disposal of fixed assets, intangible
assets, and other long-term assets
Subtotal of cash inflows from investing activities 4,903,927,833 1,382,183,626
Cash paid for the acquisition of fixed assets, plant, and
equipment, intangible assets, and other long-term assets
Cash paid for investments 4,700,500,000 1,230,987,671
Subtotal of cash outflows from investing activities 4,706,068,345 1,239,628,674
Net cash flow from investing activities 197,859,488 142,554,952
III. Cash Flows from Financing Activities:
Cash received from borrowings 3,217,000,000 1,366,490,000
Subtotal of cash inflows from financing activities 3,217,000,000 1,366,490,000
Cash paid to repay debt 2,375,245,100 868,784,900
Cash paid for dividends, profits, or interest 287,247,220 834,487,779
Cash paid for other financing activities 1,505,542,147 132,438,661
Subtotal of cash outflows from financing activities 4,168,034,467 1,835,711,340
Net cash provided by financing activities -951,034,467 -469,221,340
IV. Effect of Exchange Rate Changes on Cash and Cash
-535,134 -5,359,408
Equivalents
V. Net Increase in Cash and Cash Equivalents -693,891,018 -396,344,888
Plus: Beginning balance of cash and cash equivalents 1,431,539,421 1,827,884,309
VI. Cash and cash equivalents at end of period 737,648,403 1,431,539,421
Legal Representative: Head of Accounting: Head of Accounting Department:
Consolidated Statement of Changes in Equity
Unit: Yuan
Equity attributable to the parent company
Item
Less: other non-controlli Total equity
capital Special surplus retained
share capital Treasury comprehens Subtotal ng interests
surplus reserves reserve earnings
stock ive income
I. Balance at the end of the
previous period
II. Beginning balance for the
current period
III. Changes in the current
period (decreases are indicated 296,770,027 -8,909,361 1,223,282 49,200,046 -135,204,777 -390,460,837 -57,495,553 -447,956,390
with a "?")
(1) Total Comprehensive
-8,909,361 125,668,291 116,758,930 -20,334,152 96,424,778
Income
(2) Capital Contributions and
Reductions by Owners
Owners
(3) Distribution of Profits 49,200,046 -260,873,068 -211,673,022 -37,161,401 -248,834,423
reserve
-211,673,022 -211,673,022 -37,161,401 -248,834,423
shareholders)
(4) Special Reserve 1,223,282 1,223,282 1,223,282
period
IV. Balance at the end of the
current period 3,070,692,107 590,739,414 296,770,027 150,816,908 6,302,910 1,534,714,228 8,088,993,418 13,145,488,958 409,198,624 13,554,687,582
Consolidated Statement of Changes in Equity
Unit:Yuan
Equity attributable to the parent company
Item
other non-controllin Total Equity
capital Special surplus retained
share capital comprehensiv Subtotal g interests
surplus reserves reserve earnings
e income
I. Balance at the end of the
previous period
II. Beginning balance for the
current period
III. Changes in the Current
Period (decreases are indicated -17,658,202 3,668,489 81,450,884 -582,351,593 -514,890,422 -19,171,775 -534,062,197
by a "?" sign)
(1) Total comprehensive
-17,658,202 266,772,318 249,114,116 -19,171,775 229,942,341
income
(2) Capital Contributions and
Reductions by Owners
Owners
(3) Profit Distribution 81,450,884 -849,123,911 -767,673,027 -767,673,027
-767,673,027 -767,673,027 -767,673,027
shareholders)
(4) Special Reserve 3,668,489 3,668,489 3,668,489
period
IV. Balance at the end of the
current period
Legal Representative: Head of Accounting: Head of Accounting Department:
Statement of Changes in Equity of the Parent Company
Unit: Yuan
Item Less: Treasury
share capital capital surplus surplus reserve retained earnings Total Equity
Stock
I. Balance at the end of the previous period 3,070,692,107 741,824,399 1,500,059,542 2,988,398,053 8,300,974,101
II. Beginning balance for the current period 3,070,692,107 741,824,399 1,500,059,542 2,988,398,053 8,300,974,101
III. Changes for the Period (decreases indicated by “?”) 296,770,027 49,200,046 231,127,389 -16,442,592
(1) Total Comprehensive Income 492,000,457 492,000,457
(2) Contributions and Drawings by Owners 296,770,027 -296,770,027
(3) Distribution of Profits 49,200,046 -260,873,068 -211,673,022
(4) Internal transfers within equity
(5) Special reserves
(6) Other
IV. Balance at the End of the Current Period 3,070,692,107 741,824,399 296,770,027 1,549,259,588 3,219,525,442 8,284,531,509
Statement of Changes in Equity of the Parent Company
Unit:Yuan
Item
share capital capital surplus surplus reserve retained earnings Total Equity
I. Balance at the end of the previous period 3,070,692,107 741,824,399 1,418,608,658 3,023,013,128 8,254,138,292
II. Beginning balance for the current period 3,070,692,107 741,824,399 1,418,608,658 3,023,013,128 8,254,138,292
III. Changes for the Period (Decreases are indicated with a "?"
sign)
(1) Total Comprehensive Income 814,508,836 814,508,836
(2) Contributions to and reductions in equity
(3) Profit Distribution 81,450,884 -849,123,911 -767,673,027
(4) Internal transfers within owners' equity
(5) Special reserves
(6) Other
IV. Balance at the End of the Current Period 3,070,692,107 741,824,399 1,500,059,542 2,988,398,053 8,300,974,101
Legal Representative: Head of Accounting: Head of Accounting Department:
CSG Holding Co., Ltd.
Notes to the Financial Statements
Notes to the Financial Statements
I. Company Profile
China Merchants Steam Navigation Company Ltd., Shenzhen Building Materials Industry Group
Company, China North Industries Shenzhen Corp., and Guangdong International Trust and Investment
Co. Ltd. jointly invested in the establishment of CSG Holding Co., Ltd., which was established in
September 1984. The company is registered in Shenzhen, Guangdong Province, People‘s Republic of
China, and its headquarters are located in Shenzhen, Guangdong Province, People ‘ s Republic of
China.The Group publicly issued RMB ordinary shares (“A-shares”) and foreign investment shares
(“B-shares”) in October 1991 and January 1992, respectively, and was listed on the Shenzhen Stock
Exchange (“SZSE”) in February 1992.As of December 31, 2025, the Group’s total share capital was
RMB 3,070,692,107, with a par value of RMB 1 per share.
The principal business operations of the Group and its subsidiaries (hereinafter collectively referred to
as the “Group”) include: the production and sale of float glass, photovoltaic glass, special glass,
architectural glass, energy-saving products, and glass-based energy products; the production and sale
of polysilicon and solar modules; the production and sale of electronic glass and display devices; and
the construction and operation of photovoltaic power plants.
These financial statements and the notes thereto were approved for issuance by the Group’s Board of
Directors on April 24, 2026.
For details on the major subsidiaries included in the scope of consolidation for the current year, please
refer to the notes.
II. Basis of Preparation of the Financial Statements
These financial statements have been prepared in accordance with the Chinese Accounting Standards
for Business Enterprises issued by the Ministry of Finance, along with their application guidelines,
interpretations, and other relevant provisions (collectively referred to as the “Chinese Accounting
Standards for Business Enterprises”). In addition, the Group discloses relevant financial information in
accordance with the China Securities Regulatory Commission’s “Rule No. 15 on Information Disclosure
for Companies Issuing Securities—General Provisions for Financial Reports (Revised in 2023).”
These financial statements are presented on a going concern basis.
The Group’s accounting is based on the accrual basis. Except for certain financial instruments and
investment properties, these financial statements are measured at historical cost. If an asset is impaired,
an impairment allowance is recognized in accordance with relevant regulations.
III. Significant Accounting Policies and Estimates
The Group determines the depreciation of fixed assets, amortization of intangible assets, criteria for
capitalizing research and development expenses, and revenue recognition policies based on the
characteristics of its production and operations. For specific accounting policies, please refer to Notes
CSG Holding Co., Ltd.
Notes to the Financial Statements
These financial statements comply with the requirements of Chinese Accounting Standards for
Business Enterprises and present a true and fair view of the Group’s consolidated and separate
financial position as of December 31, 2025, as well as the Group’s and the Company’s consolidated and
separate results of operations and cash flows for the year ended December 31, 2025.
The Group’s accounting period follows the calendar year, i.e., from January 1 to December 31 of each
year.
The Group’s operating cycle is 12 months.
The Group and its domestic subsidiaries use the Renminbi as their functional currency. The Group’s
overseas subsidiaries determine their functional currency based on the currency of the primary
economic environment in which they operate. The currency used by the Group in preparing these
financial statements is the Renminbi.
Item Materiality Threshold
Accounts receivable where the amount of an individual item
Significant individual accounts receivable for which an
represents 5% or more of the consolidated accounts
allowance for doubtful accounts is recognized
receivable balance
Items where the amount of a single other receivable
Significant individual accounts receivable for which an
accounts for 10% or more of the consolidated balance of
allowance for doubtful accounts is recognized
other receivables
Items whose impact on the Company’s current period profit
Significant Write-offs of Accounts Receivable/Other or loss represents 5% or more of the absolute value of the
Receivables Company’s audited net profit for the most recent fiscal year
and whose absolute amount exceeds RMB 1 million
Projected investment amount representing 5% or more of
Significant construction in progress the most recent audited equity attributable to the parent
company
Total assets of the subsidiary account for 5% or more of
Significant non-wholly-owned subsidiaries
total consolidated assets
control
(1) Business Combinations Under Common Control
For business combinations under common control, the assets and liabilities of the acquiree acquired by
the acquirer in the combination are measured at the acquiree’s carrying amount in the ultimate
controlling party’s consolidated financial statements as of the combination date.The difference between
the book value of the merger consideration (or the total par value of the shares issued) and the book
value of the net assets acquired in the merger is recorded in capital surplus (share capital premium). If
CSG Holding Co., Ltd.
Notes to the Financial Statements
capital surplus (share capital premium) is insufficient to absorb the difference, the remaining amount is
recorded in retained earnings.
Business Combinations Under Common Control Achieved Through Multiple Transactions
The assets and liabilities of the acquiree acquired by the acquirer in the business combination are
measured at their carrying amounts in the consolidated financial statements of the ultimate controlling
party as of the combination date; the difference between the sum of the carrying amount of the
investment held prior to the combination and the carrying amount of the new consideration paid on the
combination date, and the carrying amount of the net assets acquired in the combination, is recognized
in capital surplus (share capital premium). If capital surplus is insufficient to absorb the difference, the
excess is recognized in retained earnings.For long-term equity investments held by the acquirer prior to
obtaining control of the acquiree, any gains or losses, other comprehensive income, and changes in
other equity recognized between the later of the date the original equity interest was acquired and the
date the acquirer and the acquiree came under the same ultimate control, and the merger date, shall be
offset against retained earnings at the beginning of the comparative reporting period or against net
income for the current period, respectively.
(2) Business Combinations Not Under Common Control
For business combinations not under common control, the cost of the combination is the fair value of
the assets given, liabilities incurred or assumed, and equity securities issued to acquire control of the
acquiree as of the acquisition date. As of the acquisition date, the acquiree’s assets, liabilities, and
contingent liabilities are recognized at fair value.
Any excess of the acquisition cost over the acquirer’s share of the fair value of the acquiree’s
identifiable net assets is recognized as goodwill and subsequently measured at cost less accumulated
impairment losses; any shortfall of the acquisition cost relative to the acquirer’s share of the fair value of
the acquiree’s identifiable net assets is recognized in profit or loss after verification.
Business Combinations Under Non-Common Control Achieved Through Multiple Transactions
The cost of the combination is the sum of the consideration paid at the acquisition date and the fair
value at the acquisition date of the equity interest in the acquiree held prior to the acquisition date. The
equity interest in the acquiree held prior to the acquisition date is remeasured at its fair value at the
acquisition date, and the difference between the fair value and the carrying amount is recognized in
investment income for the current period;Equity interests in the acquiree held prior to the acquisition
date that relate to other comprehensive income and changes in other equity are reclassified to profit or
loss for the acquisition date, except for other comprehensive income arising from changes in the net
liability or net asset of a defined benefit plan of the investee due to remeasurement, and other
comprehensive income related to non-trading equity instrument investments originally designated as
measured at fair value with changes recognized in other comprehensive income.
(3) Treatment of Transaction Costs in Business Combinations
Intermediary fees, such as those for audit, legal services, and valuation and advisory services, as well
as other related general and administrative expenses incurred in connection with a business
combination, are recognized in profit or loss in the period in which they are incurred. Transaction costs
CSG Holding Co., Ltd.
Notes to the Financial Statements
associated with equity or debt securities issued as consideration for a business combination are
included in the initial recognition amount of the equity or debt securities.
(1) Criteria for Determining Control
The scope of consolidation for consolidated financial statements is determined on the basis of control.
Control means that the Group has the power over the investee, is entitled to variable returns by
participating in the investee’s activities, and has the ability to use its power over the investee to affect
the amount of those returns. The Group reassesses control whenever changes in relevant facts and
circumstances affect the factors involved in the definition of control.
In determining whether to include a structured entity in the scope of consolidation, the Group assesses
whether it controls the structured entity by considering all relevant facts and circumstances, including
evaluating the purpose and design of the structured entity, identifying the nature of variable returns, and
determining whether it bears some or all of the variability in returns through participation in the entity’s
activities.
(2) Methodology for Preparing Consolidated Financial Statements
The consolidated financial statements are prepared by the Group based on the financial statements of
the Group and its subsidiaries, supplemented by other relevant information. In preparing the
consolidated financial statements, the accounting policies and accounting periods of the Group and its
subsidiaries are aligned, and significant intercompany transactions and balances are eliminated.
Subsidiaries and businesses acquired during the reporting period through business combinations under
common control are treated as if they had been included in the Group’s scope of consolidation from the
date they came under the control of the common ultimate controlling party. Their operating results and
cash flows from that date are included in the consolidated statement of comprehensive income and the
consolidated statement of cash flows, respectively.
For subsidiaries and businesses acquired during the reporting period through business combinations
not under common control, the revenue, expenses, and profit of such subsidiaries and businesses from
the acquisition date to the end of the reporting period are included in the consolidated income statement,
and their cash flows are included in the consolidated cash flow statement.
The portion of a subsidiary’s equity not owned by the Group is presented separately as non-controlling
interests under the equity section of the consolidated balance sheet; the share of the subsidiary’s net
profit or loss for the period attributable to non-controlling interests is presented as “Profit or Loss
Attributable to Non-Controlling Interests” under the net profit item in the consolidated income
statement.To the extent that the share of the subsidiary’s loss borne by minority shareholders exceeds
the minority shareholders’ share of the subsidiary’s opening equity, the excess is still offset against
non-controlling interests.
(3) Acquisition of Minority Interests in a Subsidiary
The difference between the cost of a long-term equity investment newly acquired through the purchase
of a minority interest and the share of the subsidiary’s net assets calculated continuously from the
CSG Holding Co., Ltd.
Notes to the Financial Statements
acquisition date or the date of consolidation in accordance with the new ownership percentage, as well
as the difference between the proceeds received from the partial disposal of an equity investment in a
subsidiary without losing control and the share of the subsidiary’s net assets calculated continuously
from the acquisition date or the date of consolidation corresponding to the long-term equity investment
being disposed of, shall both be recorded in the consolidated balance sheet under capital surplus(Share
Capital Premium/Capital Surplus); if the capital surplus is insufficient to offset the difference, retained
earnings are adjusted.
(4) Treatment of Loss of Control over a Subsidiary
If control over a subsidiary is lost due to the disposal of a portion of the equity investment or for other
reasons, the remaining equity interest is remeasured at its fair value as of the date control is lost;the
sum of the consideration received from the disposal and the fair value of the remaining equity interest,
less the sum of the share of the former subsidiary’s net assets (calculated from the acquisition date
based on the original ownership percentage) and goodwill, is recognized as investment income in the
period in which control is lost.
Other comprehensive income related to the equity investment in the former subsidiary shall be
accounted for at the time of loss of control on the same basis as if the former subsidiary had directly
disposed of the relevant assets or liabilities; all other changes in equity under the equity method related
to the former subsidiary shall be reclassified to profit or loss in the period of loss of control.
Cash refers to cash on hand and deposits available for immediate payment. Cash equivalents refer to
investments held by the Group that are short-term, highly liquid, readily convertible into a known amount
of cash, and subject to an insignificant risk of changes in value.
(1) Foreign Currency Transactions
When the Group engages in foreign currency transactions, they are translated into the functional
currency at the spot exchange rate prevailing on the transaction date.
At the balance sheet date, foreign currency monetary items are translated using the spot exchange rate
prevailing on the balance sheet date. Exchange differences arising from the difference between the spot
exchange rate on the balance sheet date and the spot exchange rate at the time of initial recognition or
the previous balance sheet date are recognized in profit or loss for the current period;For non-monetary
foreign currency items measured at historical cost, the spot exchange rate on the transaction date is still
used for translation; for non-monetary foreign currency items measured at fair value, the spot exchange
rate on the date the fair value was determined is used for translation. The difference between the
translated amount in the functional currency and the original amount in the functional currency is
recognized in profit or loss or other comprehensive income for the period, depending on the nature of
the non-monetary item.
(2) Translation of Foreign Currency Financial Statements
CSG Holding Co., Ltd.
Notes to the Financial Statements
At the balance sheet date, when translating the foreign currency financial statements of overseas
subsidiaries, assets and liabilities in the balance sheet are translated using the spot exchange rate on
the balance sheet date. For equity items, all items except “retained earnings” are translated using the
spot exchange rate on the transaction date.
Revenue and expense items in the income statement are translated using the spot exchange rate on
the transaction date.
All items in the cash flow statement are translated using the spot exchange rate on the date the cash
flow occurred. The effect of exchange rate changes on cash is treated as an adjusting item and is
presented separately in the cash flow statement under the heading “Effect of exchange rate changes on
cash and cash equivalents.”
Differences arising from the translation of financial statements are recognized in the “Other
Comprehensive Income” line item under shareholders’ equity in the balance sheet.
Upon the disposal of a foreign operation and the loss of control, all foreign currency translation
differences related to that foreign operation, which are presented under shareholders’ equity in the
balance sheet, are transferred to profit or loss for the period of disposal, either in full or in proportion to
the disposal of the foreign operation.
A financial instrument is a contract that gives rise to a financial asset of one party and a financial liability
or equity instrument of another party.
(1) Recognition and Derecognition of Financial Instruments
The Group recognizes a financial asset or financial liability when it becomes a party to a financial
instrument contract.
A financial asset is derecognized when one of the following conditions is met:
①The contractual rights to receive cash flows from the financial asset have terminated;
② The financial asset has been transferred and meets the derecognition criteria for a transfer of a
financial asset described below.
A financial liability is derecognized in whole or in part when the present obligation under the liability is
discharged in whole or in part. If the Group (the debtor) enters into an agreement with a creditor to
replace an existing financial liability with a new financial liability, and the terms of the new financial
liability differ substantially from those of the existing financial liability, the existing financial liability is
derecognized and the new financial liability is recognized simultaneously.
For the purchase or sale of financial assets in the ordinary course of business, recognition and
derecognition are accounted for on the trade date.
(2) Classification and Measurement of Financial Assets
CSG Holding Co., Ltd.
Notes to the Financial Statements
Upon initial recognition, the Group classifies financial assets into the following three categories based
on the business model for managing the financial assets and the contractual cash flow characteristics of
the financial assets: financial assets measured at amortized cost, financial assets measured at fair
value with changes recognized in other comprehensive income, and financial assets measured at fair
value with changes recognized in profit or loss.
Financial assets are measured at fair value upon initial recognition.For financial assets measured at fair
value with changes recognized in profit or loss, related transaction costs are recognized directly in profit
or loss; for financial assets in other categories, related transaction costs are included in the initial
recognition amount. For receivables arising from the sale of products or the provision of services that do
not contain or do not take into account a significant financing component, the Group uses the amount of
consideration it expects to be entitled to receive as the initial recognition amount.
Financial Assets Measured at Amortized Cost
The Group classifies financial assets that meet all of the following criteria and are not designated as
financial assets at fair value through profit or loss as financial assets measured at amortized cost:
? The Group’s business model for managing the financial asset is to collect the contractual cash
flows;
? The contractual terms of the financial asset provide that cash flows arising on specific dates consist
solely of payments of principal and interest based on the outstanding principal amount.
After initial recognition, such financial assets are measured at amortized cost using the effective interest
method. Gains or losses arising from financial assets measured at amortized cost that are not part of
any hedging relationship are recognized in profit or loss upon derecognition, amortization using the
effective interest method, or recognition of an impairment loss.
Financial assets measured at fair value with changes recognized in other comprehensive income
The Group classifies financial assets that meet all of the following criteria and are not designated as
financial assets at fair value through profit or loss as financial assets at fair value through other
comprehensive income:
? The Group’s business model for managing the financial asset is aimed at both collecting
contractual cash flows and selling the financial asset;
? The contractual terms of the financial asset provide that cash flows arising on specific dates consist
solely of payments of principal and interest based on the outstanding principal amount.
After initial recognition, such financial assets are subsequently measured at fair value. Interest
calculated using the effective interest method, impairment losses or gains, and foreign exchange gains
or losses are recognized in profit or loss; other gains or losses are recognized in other comprehensive
income. Upon derecognition, the cumulative gains or losses previously recognized in other
comprehensive income are reclassified from other comprehensive income to profit or loss.
Financial Assets Measured at Fair Value with Changes Recognized in Profit or Loss
CSG Holding Co., Ltd.
Notes to the Financial Statements
Except for the financial assets measured at amortized cost and those measured at fair value with
changes recognized in other comprehensive income described above, the Group classifies all other
financial assets as financial assets measured at fair value with changes recognized in profit or
loss.Upon initial recognition, to eliminate or significantly reduce accounting mismatches, the Group
irrevocably designates a portion of financial assets that would otherwise be measured at amortized cost
or at fair value with changes recognized in other comprehensive income as financial assets measured
at fair value with changes recognized in profit or loss.
Subsequent to initial recognition, such financial assets are measured at fair value, and any resulting
gains or losses (including interest and dividend income) are recognized in profit or loss, unless the
financial asset is part of a hedging relationship.
The business model for managing financial assets refers to how the Group manages financial assets to
generate cash flows. The business model determines whether the source of cash flows from the
financial assets managed by the Group is the collection of contractual cash flows, the sale of financial
assets, or a combination of both. The Group determines the business model for managing financial
assets based on objective evidence and the specific business objectives for managing financial assets
as determined by key management personnel.
The Group assesses the contractual cash flow characteristics of financial assets to determine whether
the contractual cash flows generated by the relevant financial assets on a specific date consist solely of
payments of principal and interest based on the outstanding principal amount. Here, principal refers to
the fair value of the financial asset at initial recognition; interest includes compensation for the time
value of money, credit risk associated with the outstanding principal amount for a specific period, and
other fundamental lending risks, costs, and profits.In addition, the Group assesses the contractual terms
that could result in changes to the timing or amount of the financial asset’s contractual cash flows to
determine whether they meet the requirements of the aforementioned contractual cash flow
characteristics.
Financial assets are reclassified only when the Group changes its business model for managing
financial assets, and all affected financial assets are reclassified on the first day of the first reporting
period following the change in business model; otherwise, financial assets shall not be reclassified after
initial recognition.
Financial assets are measured at fair value upon initial recognition.For financial assets measured at fair
value with changes recognized in profit or loss, related transaction costs are recognized directly in profit
or loss; for other categories of financial assets, related transaction costs are included in the initial
recognition amount. For accounts receivable arising from the sale of products or the provision of
services that do not contain or take into account a significant financing component, the Group uses the
amount of consideration to which it expects to be entitled as the initial recognition amount.
(3) Classification and Measurement of Financial Liabilities
The Group’s financial liabilities are classified upon initial recognition as: financial liabilities measured at
fair value with changes recognized in profit or loss, and financial liabilities measured at amortized cost.
For financial liabilities not classified as those measured at fair value with changes recognized in profit or
loss, related transaction costs are included in their initial recognition amount.
Financial liabilities measured at fair value through profit or loss
CSG Holding Co., Ltd.
Notes to the Financial Statements
Financial liabilities measured at fair value through profit or loss include trading financial liabilities and
financial liabilities designated upon initial recognition as measured at fair value through profit or loss.
For such financial liabilities, subsequent measurement is based on fair value, and gains or losses
arising from changes in fair value, as well as dividends and interest expenses related to these financial
liabilities, are recognized in profit or loss.
Financial liabilities measured at amortized cost
Other financial liabilities are measured at amortized cost using the effective interest method, and gains
or losses arising from derecognition or amortization are recognized in profit or loss.
Distinction Between Financial Liabilities and Equity Instruments
A financial liability is a liability that meets one of the following conditions:
① A contractual obligation to deliver cash or other financial assets to another party.
② A contractual obligation to exchange financial assets or financial liabilities with another party under
potential adverse conditions.
③ A non-derivative contract that is required or permitted to be settled in the entity’s own equity
instruments, and under which the entity is to deliver a variable number of its own equity instruments.
④A derivative contract that is to be settled, or may be settled, in the entity’s own equity instruments,
except for derivative contracts that exchange a fixed number of the entity’s own equity instruments for a
fixed amount of cash or other financial assets.
An equity instrument is a contract that evidences a residual interest in the assets of an entity after
deducting all of its liabilities.
If the Group cannot unconditionally avoid fulfilling a contractual obligation by delivering cash or other
financial assets, that contractual obligation meets the definition of a financial liability.
If a financial instrument is required or permitted to be settled in the Group’s own equity instruments, it is
necessary to consider whether the Group’s own equity instruments used to settle the instrument serve
as a substitute for cash or other financial assets, or whether they are intended to give the holder of the
instrument a residual interest in the assets of the issuer after deducting all liabilities. If the former, the
instrument is a financial liability of the Group; if the latter, the instrument is an equity instrument of the
Group.
(4) Fair Value of Financial Instruments
The methods for determining the fair value of financial assets and financial liabilities are described in
Note 3.11.
(5) Impairment of Financial Assets
The Group applies impairment accounting based on expected credit losses and recognizes an
allowance for credit impairment losses for the following items:
CSG Holding Co., Ltd.
Notes to the Financial Statements
? Financial assets measured at amortized cost;
? Receivables and debt investments measured at fair value with changes recognized in other
comprehensive income;
? Contract assets as defined in Chinese Accounting Standards for Business Enterprises No.
? Lease receivables;
? Financial guarantee contracts (excluding those measured at fair value with changes recognized in
profit or loss, or those arising from the transfer of financial assets that do not meet the criteria for
derecognition or from continued involvement in the transferred financial assets).
Measurement of Expected Credit Losses
Expected credit loss refers to the weighted average of credit losses on financial instruments, weighted
by the risk of default. Credit loss refers to the difference between all contractual cash flows due under
the contract, discounted at the original effective interest rate, and all expected cash flows to be received,
i.e., the present value of the total cash shortfall.
The Group recognizes expected credit losses by calculating the probability-weighted present value of
the difference between the contractual cash flows due and the expected cash flows to be received,
weighted by the risk of default, based on reasonable and supportable information regarding past events,
current conditions, and forecasts of future economic conditions.
The Group measures expected credit losses separately for financial instruments in different stages. If
the credit risk of a financial instrument has not increased significantly since initial recognition, it is
classified in Stage 1, and the Group measures the loss allowance based on the expected credit loss
over the next 12 months; if the credit risk of a financial instrument has increased significantly since initial
recognition but no credit impairment losses have yet occurred, it is classified in Stage 2, and the Group
measures the loss allowance based on the expected credit loss over the entire life of the
instrument;Financial instruments for which credit impairment losses have occurred since initial
recognition are classified in Stage 3, and the Group measures the loss allowance based on the
expected credit losses over the instrument’s entire remaining life.
For financial instruments with low credit risk as of the balance sheet date, the Group assumes that
credit risk has not increased significantly since initial recognition and measures the credit loss allowance
based on expected credit losses over the next 12 months.
Expected credit losses over the entire life refer to the expected credit losses resulting from all possible
default events that may occur over the entire expected life of the financial instrument. Expected credit
losses over the next 12 months refer to the expected credit losses resulting from default events that
may occur within 12 months after the balance sheet date (or within the expected life of the financial
instrument if it is less than 12 months), and constitute a portion of the expected credit losses over the
entire life.
When measuring expected credit losses, the Group considers the longest contract term during which
the entity is exposed to credit risk (including renewal options).
CSG Holding Co., Ltd.
Notes to the Financial Statements
For financial instruments in Stage 1 and Stage 2, as well as those with lower credit risk, the Group
calculates interest income based on their carrying amounts before impairment and the effective interest
rate. For financial instruments in Stage 3, the Group calculates interest income based on their amortized
cost (carrying amount less accumulated impairment losses) and the effective interest rate.
For receivables such as notes receivable, accounts receivable, receivables financing, other receivables,
and contract assets, if a customer’s credit risk profile differs significantly from that of other customers in
the portfolio, or if there is a significant change in the customer’s credit risk profile, the Group recognizes
an individual allowance for doubtful accounts for that receivable.Except for receivables for which an
individual allowance for doubtful accounts has been recognized, the Group classifies receivables into
groups based on credit risk characteristics and calculates the allowance for doubtful accounts on a
group basis.
Notes receivable, accounts receivable, and contract assets
For notes receivable and accounts receivable, regardless of whether a significant financing component
exists, the Group always measures its loss allowance based on an amount equivalent to the expected
credit losses over the entire remaining life of the asset.
When information regarding expected credit losses for an individual financial asset cannot be assessed
at a reasonable cost, the Group classifies notes receivable and accounts receivable into groups based
on credit risk characteristics and calculates expected credit losses on a group basis. The basis for
determining the groups is as follows:
A. Notes Receivable
? Notes Receivable Portfolio 1: Banker’s Acceptances
? Notes Receivable Portfolio 2: Commercially Accepted Bills
B. Accounts Receivable
? Accounts Receivable Pool 1: Non-related-party customers
? Accounts Receivable Group 2: Related-Party Customers
For notes receivable and contract assets classified into pools, the Group calculates expected credit
losses based on historical credit loss experience, combined with current conditions and forecasts of
future economic conditions, using default risk exposure and lifetime expected credit loss rates.
For accounts receivable classified into pools, the Group calculates expected credit losses by preparing
a cross-reference table of accounts receivable aging/days past due against the lifetime expected credit
loss rate, based on historical credit loss experience, current conditions, and forecasts of future
economic conditions. The aging of accounts receivable is calculated from the date of recognition, and
days past due are calculated from the date the credit period expires.
Other Receivables
The Group classifies other receivables into several pools based on credit risk characteristics and
calculates expected credit losses on a pool basis. The basis for determining the pools is as follows:
CSG Holding Co., Ltd.
Notes to the Financial Statements
? Other Receivables Portfolio 1: Receivables from Non-Related Parties
? Other Receivables Portfolio 2: Receivables from Related Parties
For other receivables classified into pools, the Group calculates expected credit losses using default risk
exposure and expected credit loss rates over the next 12 months or the entire life of the receivables. For
other receivables classified into pools based on aging, the aging period is calculated from the date of
recognition.
Debt Investments and Other Debt Investments
For debt investments and other debt investments, the Group calculates expected credit losses based on
the nature of the investment, the type of counterparty, and the type of exposure, using default risk
exposure and expected credit loss rates over the next 12 months or the entire life of the investment.
Assessment of a Significant Increase in Credit Risk
The Group assesses whether credit risk has increased significantly since initial recognition by
comparing the risk of default of a financial instrument at the balance sheet date with the risk of default at
the date of initial recognition, to determine the relative change in the risk of default over the expected life
of the financial instrument.
In determining whether credit risk has increased significantly since initial recognition, the Group
considers reasonable and supportable information, including forward-looking information, that is
available without undue additional cost or effort. The information considered by the Group includes:
? instances where the debtor has failed to pay principal and interest by the contractual due date;
? Significant deterioration in the external or internal credit ratings (if any) of the financial instrument,
whether actual or expected;
? a significant deterioration in the debtor’s operating results, whether actual or expected;
? Existing or anticipated changes in the technological, market, economic, or legal environment that
would have a material adverse effect on the debtor’s ability to repay the Group.
Depending on the nature of the financial instrument, the Group assesses whether credit risk has
increased significantly on an individual financial instrument basis or on a portfolio basis. When
assessing on a portfolio basis, the Group may classify financial instruments based on common credit
risk characteristics, such as delinquency information and credit risk ratings.
If a financial instrument is past due by more than 30 days, the Group determines that the credit risk of
the financial instrument has increased significantly.
The Group considers a financial asset to be in default when:
? The borrower is unlikely to pay the full amount owed to the Group, and this assessment does not
consider recourse actions taken by the Group, such as the realization of collateral (if held);
? The financial asset is past due by more than 90 days.
CSG Holding Co., Ltd.
Notes to the Financial Statements
Financial assets that are credit-impaired
At each balance sheet date, the Group assesses whether financial assets measured at amortized cost
and debt investments measured at fair value through other comprehensive income have become
credit-impaired. A financial asset becomes credit-impaired when one or more events occur that have an
adverse effect on the expected future cash flows of the financial asset. Evidence that a financial asset is
credit-impaired includes the following observable information:
? Significant financial difficulties experienced by the issuer or debtor;
? A breach of contract by the debtor, such as a default or delinquency in interest or principal
payments;
? The Group grants the debtor concessions that it would not otherwise grant, based on economic or
contractual considerations related to the debtor’s financial difficulties;
? It is highly probable that the debtor will enter bankruptcy or undergo other financial restructuring;
? the disappearance of an active market for the financial asset due to the financial difficulties of the
issuer or debtor.
Presentation of the Allowance for Expected Credit Losses
To reflect changes in the credit risk of financial instruments since initial recognition, the Group
remeasures expected credit losses at each balance sheet date. Any increase or reversal in the loss
allowance resulting therefrom shall be recognized as credit impairment losses or gains in profit or loss
for the current period.For financial assets measured at amortized cost, the loss allowance reduces the
carrying amount of the financial asset as presented in the balance sheet; for debt investments
measured at fair value with changes recognized in other comprehensive income, the Group recognizes
the loss allowance in other comprehensive income and does not reduce the carrying amount of the
financial asset.
Write-off
If the Group no longer reasonably expects to recover all or part of the contractual cash flows of a
financial asset, the carrying amount of that financial asset is written down directly. Such a write-down
constitutes the derecognition of the relevant financial asset. This situation typically arises when the
Group determines that the debtor has no assets or sources of income capable of generating sufficient
cash flows to repay the amount written down. However, in accordance with the Group’s procedures for
collecting past-due amounts, a written-down financial asset may still be subject to enforcement actions.
If a written-down financial asset is subsequently recovered, the reversal of the impairment loss is
recognized in profit or loss for the period in which the recovery occurs.
(6) Transfer of Financial Assets
A transfer of a financial asset is the assignment or delivery of a financial asset to a party other than the
issuer of the financial asset (the transferee).
CSG Holding Co., Ltd.
Notes to the Financial Statements
If the Group has transferred substantially all the risks and rewards of ownership of the financial asset to
the transferee, the financial asset is derecognized; if the Group has retained substantially all the risks
and rewards of ownership of the financial asset, the financial asset is not derecognized.
If the Group has neither transferred nor retained substantially all the risks and rewards of ownership of
the financial asset, the following treatments apply: if control over the financial asset has been
relinquished, the financial asset is derecognized and the resulting assets and liabilities are recognized; if
control over the financial asset has not been relinquished, the financial asset is recognized to the extent
of the Group’s continuing involvement in the transferred financial asset, and the related liability is
recognized accordingly.
(7) Offsetting of Financial Assets and Financial Liabilities
When the Group has a legal right to offset recognized financial assets and financial liabilities, and is
currently able to exercise that right, and the Group intends to settle on a net basis or to realize the
financial asset and settle the financial liability simultaneously, the financial assets and financial liabilities
are presented in the balance sheet at their net amount after offsetting. Otherwise, financial assets and
financial liabilities are presented separately in the balance sheet and are not offset against each other.
Fair value is the price that a market participant would receive to sell an asset or pay to transfer a liability
in an orderly transaction at the measurement date.
The Group measures relevant assets or liabilities at fair value, assuming that the orderly transaction to
sell the asset or transfer the liability takes place in the principal market for the relevant asset or liability;
if no principal market exists, the Group assumes that the transaction takes place in the most
advantageous market for the relevant asset or liability. The principal market (or most advantageous
market) is the trading market to which the Group has access on the measurement date.The Group uses
the assumptions that a market participant would use when pricing the asset or liability to maximize its
economic benefit.
For financial assets or financial liabilities with active markets, the Group determines their fair value using
quoted prices in active markets. For financial instruments without active markets, the Group determines
their fair value using valuation techniques.
When measuring non-financial assets at fair value, the Group considers the ability of market participants
to generate economic benefits by using the asset for its best use, or by selling the asset to other market
participants who can use it for its best use.
The Group uses valuation techniques that are appropriate in the current circumstances and supported
by sufficient available data and other information, giving priority to relevant observable inputs;
unobservable inputs are used only when observable inputs are unavailable or it is impractical to obtain
them.
Assets and liabilities measured or disclosed at fair value in the financial statements are classified into
fair value hierarchies based on the lowest level of inputs that is significant to the fair value measurement
as a whole: Level 1 inputs are unadjusted quotes for identical assets or liabilities available in active
markets on the measurement date; Level 2 inputs are directly or indirectly observable inputs for the
CSG Holding Co., Ltd.
Notes to the Financial Statements
relevant assets or liabilities other than Level 1 inputs;Level 3 inputs are unobservable inputs for the
relevant asset or liability.
At each balance sheet date, the Group reassesses assets and liabilities recognized in the financial
statements that are measured at fair value on a continuing basis to determine whether there have been
any transfers between fair value measurement levels.
(1) Classification of Inventories
The Group’s inventories are classified into raw materials, work in progress, finished goods, and
consumables.
(2) Valuation method for issued inventories
The Group’s inventories are measured at actual cost upon acquisition. Raw materials, finished goods,
and other inventories are valued using the weighted average method upon issuance.
(3) Basis for Determining and Method of Accrual of the Provision for Inventory Write-Down
At the balance sheet date, inventories are measured at the lower of cost and net realizable value. When
the net realizable value is lower than cost, a provision for inventory write-down is recognized.
Net realizable value is the estimated selling price of the inventories less the estimated costs to
completion, estimated selling expenses, and related taxes. In determining the net realizable value of
inventories, the Group relies on objective evidence and considers the purpose for which the inventories
are held, as well as the effects of events occurring after the balance sheet date.
The Group generally recognizes provisions for inventory write-down on an item-by-item basis. For
inventories consisting of a large number of items with low unit prices, provisions for inventory
write-down are recognized by inventory category.
At the balance sheet date, if the factors that previously caused the inventories to be written down no
longer exist, the provision for inventory write-down is reversed up to the amount previously recognized.
(4) Inventories Counting System
The Group adopts a perpetual inventory system for inventories.
The Company classifies a non-current asset or disposal group as assets held for sale if it intends to
recover its carrying amount principally through a sale (including a non-monetary asset exchange with
commercial substance; the same applies hereinafter) rather than through continuing use. The specific
criteria are that all of the following conditions are met: A non-current asset or disposal group is available
for immediate sale in its present condition, based on the practice of selling such assets or disposal
groups in similar transactions; The Company has made a resolution regarding the sale plan and has
obtained a firm purchase commitment;The sale is expected to be completed within one year. A disposal
group refers to a group of assets to be disposed of together as a whole through sale or other means in a
CSG Holding Co., Ltd.
Notes to the Financial Statements
single transaction, along with liabilities directly associated with those assets that are transferred in that
transaction. If the asset group or combination of asset groups to which the disposal group belongs has
allocated goodwill acquired in a business combination in accordance with Chinese Accounting
Standards for Business Enterprises No. 8—Impairment of Assets, the disposal group shall include the
goodwill allocated to it.
When the Company initially measures or remeasures non-current assets classified as assets held for
sale or disposal groups at the balance sheet date, and their carrying amount exceeds the net amount of
fair value less costs to sell, the carrying amount shall be written down to the net amount of fair value
less costs to sell. The amount of the write-down shall be recognized as asset impairment losses,
included in current profit or loss, and an impairment allowance for assets held for sale shall be provided
simultaneously.For a disposal group, the recognized asset impairment losses are first applied against
the carrying amount of goodwill within the disposal group, and then allocated proportionally to reduce
the carrying amounts of the non-current assets within the disposal group that are subject to the
measurement requirements of Chinese Accounting Standards for Business Enterprises No. 42—Assets
Held for Sale, Disposal Groups, and Discontinued Operations (hereinafter referred to as the
“Held-for-Sale Standard”).If the net fair value of a disposal group held for sale, net of selling expenses,
increases at a subsequent balance sheet date,any previously written-down amounts shall be reversed
and reclassified within the asset impairment losses recognized for non-current assets that were
measured in accordance with the Holding for Sale Standard after being classified as assets held for sale.
The amount of the reversal shall be recognized in profit or loss for the current period, and the carrying
amounts of such non-current assets (excluding goodwill) within the disposal group shall be increased
proportionately based on their respective carrying amounts;The carrying amount of goodwill that has
been written down, as well as asset impairment losses on non-current assets measured in accordance
with the held-for-sale standard that were recognized prior to classification as assets held for sale, shall
not be reversed.
Non-current assets held for sale or non-current assets in a disposal group are not subject to
depreciation or amortization; interest and other expenses on liabilities in a disposal group held for sale
continue to be recognized.
When a non-current asset or disposal group no longer meets the criteria for classification as held for
sale, the Company ceases to classify it as held for sale or removes the non-current asset from the
disposal group held for sale, and measures it at the lower of: (1) the carrying amount prior to
classification as held for sale, adjusted for depreciation, amortization, or impairment that would have
been recognized had it not been classified as held for sale;(2) the recoverable amount.
Long-term equity investments include equity investments in subsidiaries, joint ventures, and associates.
An investee is classified as an associate of the Group if the Group is able to exercise significant
influence over the investee.
(1) Determination of Initial Investment Cost
Long-term equity investments arising from business combinations: For long-term equity investments
acquired in a business combination under common control, the investment cost is the share of the book
value of the acquiree’s equity in the ultimate controlling party’s consolidated financial statements as of
CSG Holding Co., Ltd.
Notes to the Financial Statements
the combination date; for long-term equity investments acquired in a business combination not under
common control, the investment cost is the cost of the combination.
For long-term equity investments acquired by other means: Long-term equity investments acquired for
cash are recognized at the purchase price actually paid as the initial investment cost; long-term equity
investments acquired through the issuance of equity securities are recognized at the fair value of the
equity securities issued as the initial investment cost.
(2) Subsequent Measurement and Profit or Loss Recognition
Investments in subsidiaries are accounted for using the cost method, unless the investment meets the
criteria for held for sale; investments in associates and joint ventures are accounted for using the equity
method.
For long-term equity investments accounted for using the cost method, cash dividends or profits
declared by the investee are recognized as investment income and included in current period profit or
loss, except for declared but undistributed cash dividends or profits included in the actual purchase
price or consideration paid at the time of acquisition.
For long-term equity investments accounted for using the equity method, if the initial investment cost
exceeds the investor’s share of the fair value of the investee’s identifiable net assets at the time of
investment, the investment cost is not adjusted; if the initial investment cost is less than the investor’s
share of the fair value of the investee’s identifiable net assets at the time of investment, the carrying
amount of the long-term equity investment is adjusted, and the difference is recognized in profit or loss
for the period of the investment.
When accounting under the equity method, investment income and other comprehensive income are
recognized based on the investor’s share of the investee’s net profit or loss and other comprehensive
income, respectively, while simultaneously adjusting the carrying amount of the long-term equity
investment; the portion attributable to the investor is calculated based on the profits or cash dividends
declared by the investee, and the carrying amount of the long-term equity investment is reduced
accordingly;For changes in the investee’s equity other than net profit or loss, other comprehensive
income, and profit distributions, the carrying amount of the long-term equity investment is adjusted and
the amount is recognized in capital surplus (other capital surplus). When recognizing the share of the
investee’s net profit or loss, the amount is determined based on the fair value of the investee’s
identifiable assets at the time of acquisition, and is recognized after adjusting the investee’s net profit in
accordance with the Group’s accounting policies and the accounting period.
Where, due to additional investments or other reasons, the Group is able to exert significant influence
over the investee or exercise joint control but does not constitute control, the initial investment cost for
the transition to the equity method is determined as the sum of the fair value of the original equity
interest and the cost of the additional investment.If the original equity interest was classified as a
non-trading equity instrument investment measured at fair value with changes recognized in other
comprehensive income, the cumulative fair value changes previously recognized in other
comprehensive income are transferred to retained earnings upon the change to the equity method.
If joint control or significant influence over the investee is lost due to the disposal of a portion of the
equity investment or other reasons, the remaining equity interest after the disposal shall be accounted
for in accordance with Chinese Accounting Standards for Business Enterprises No. 22—Recognition
CSG Holding Co., Ltd.
Notes to the Financial Statements
and Measurement of Financial Instruments as of the date joint control or significant influence is lost, and
the difference between fair value and carrying amount shall be recognized in profit or loss for the current
period.Other comprehensive income previously recognized for the equity investment under the equity
method shall be accounted for on the same basis as the direct disposal of assets or liabilities by the
investee when the equity method is discontinued; all other changes in equity related to the original
equity investment shall be transferred to profit or loss for the current period.
If control over the investee is lost due to the disposal of a portion of the equity investment or other
reasons, and the remaining equity interest after the disposal is capable of exercising joint control or
significant influence over the investee, the investment shall be accounted for using the equity method,
and the remaining equity interest shall be adjusted as if it had been accounted for using the equity
method from the date of acquisition;If the remaining equity interest after the disposal cannot exercise
joint control over or exert significant influence on the investee, accounting treatment shall be conducted
in accordance with the relevant provisions of Chinese Accounting Standards for Business Enterprises
No. 22—Recognition and Measurement of Financial Instruments, and the difference between its fair
value and carrying amount as of the date of loss of control shall be recognized in profit or loss for the
current period.
Where the Group’s ownership interest decreases due to a capital increase by other investors, resulting
in the loss of control but retaining the ability to exercise joint control or exert significant influence over
the investee, the Group shall recognize its share of the increase in the investee’s net assets arising from
the capital increase in proportion to its new ownership interest; the difference between this amount and
the original carrying amount of the long-term equity investment corresponding to the decreased
ownership interest shall be recognized in profit or loss for the current period;Subsequently, adjustments
are made as if the investment had been accounted for using the equity method from the date of
acquisition, based on the new ownership percentage.
Unrealized gains or losses arising from internal transactions between the Group and its associates or
joint ventures are recognized as investment gains or losses on an offsetting basis, calculated in
proportion to the Group’s ownership interest. However, unrealized losses arising from internal
transactions between the Group and an investee that constitute asset impairment losses shall not be
offset.
(3) Basis for determining joint control or significant influence over an investee
Joint control refers to the shared control over an arrangement pursuant to relevant agreements, and
decisions regarding the arrangement’s activities must be made with the unanimous consent of the
parties sharing control. In determining whether joint control exists, one must first determine whether all
parties or a combination of parties collectively control the arrangement, and second, whether decisions
regarding the arrangement’s activities must be made with the unanimous consent of the parties
collectively controlling the arrangement.If all participants or a group of participants must act in concert to
decide on the activities of an arrangement, then all participants or that group of participants are deemed
to collectively control the arrangement; if there are two or more groups of participants capable of
collectively controlling an arrangement, this does not constitute joint control. Protective rights are not
considered when determining whether joint control exists.
Significant influence refers to the investor’s power to participate in the decision-making regarding the
investee’s financial and operating policies, but without the ability to control or jointly control the
CSG Holding Co., Ltd.
Notes to the Financial Statements
formulation of those policies with other parties.In determining whether significant influence can be
exercised over an investee, consideration is given to the voting shares held directly or indirectly by the
investor in the investee, as well as the impact of current exercisable contingent voting rights held by the
investor and other parties, assuming such rights are converted into equity interests in the investee. This
includes the impact of currently convertible warrants, stock options, and convertible bonds issued by the
investee.
When the Group directly or indirectly through subsidiaries holds 20% (inclusive) or more but less than
investee, unless there is clear evidence indicating that, under such circumstances, the Group cannot
participate in the investee’s production and operational decision-making and thus does not exert
significant influence;When the Group holds 20% (exclusive) or less of the investee’s voting shares, it is
generally not considered to have significant influence over the investee, unless there is clear evidence
indicating that, under such circumstances, the Group is able to participate in the investee’s production
and operational decisions and thus exerts significant influence.
(4) Impairment Testing Methods and Provision for Impairment
For investments in subsidiaries, associates, and joint ventures, the method for recognizing asset
impairment is described in Note 3.22.
Investment properties refer to real estate held to earn rental income or for capital appreciation, or for
both purposes. The Group’s investment properties include leased land use rights, land use rights held
for appreciation and subsequent sale, and leased buildings.
There is an active real estate market in the locations where the Group’s investment properties are
situated, and the Group is able to obtain market prices and other relevant information for comparable or
similar properties from the real estate market, thereby enabling a reasonable estimation of the fair value
of the investment properties. Consequently, the Group uses the fair value model for the subsequent
measurement of investment properties, and changes in fair value are recognized in profit or loss for the
current period.
When determining the fair value of investment properties, the Group refers to the current market prices
of comparable or similar properties in an active market; if current market prices for comparable or
similar properties are not available, the Group refers to the most recent transaction prices of
comparable or similar properties in an active market and considers factors such as transaction
circumstances, transaction dates, and location to make a reasonable estimate of the fair value of the
investment properties; or determines its fair value based on the present value of expected future rental
income and related cash flows.
In rare cases, if there is evidence that the fair value of an investment property cannot be reliably
determined on a continuous basis at the time the Group initially acquires a non-under-construction
investment property (or when an existing property first becomes an investment property following the
completion of construction or development activities or a change in use), the investment property is
measured using the cost model until disposal, and no residual value is assumed.
CSG Holding Co., Ltd.
Notes to the Financial Statements
The gain on the disposal of investment properties through sale, transfer, retirement, or destruction, net
of their carrying amounts and related taxes, is recognized in profit or loss for the period.
(1) Criteria for Recognition of Fixed Assets
The Group’s fixed assets refer to tangible assets held for the production of goods, the provision of
services, leasing, or management and operation, with a useful life exceeding one accounting period.
Fixed assets are recognized only when it is probable that the economic benefits associated with the
asset will flow to the enterprise and the cost of the asset can be measured reliably.
The Group’s fixed assets are initially measured at actual cost at the time of acquisition.
Subsequent expenditures related to fixed assets are included in the cost of the fixed assets when it is
probable that the associated economic benefits will flow to the Group and the cost can be measured
reliably; routine repair costs for fixed assets that do not meet the criteria for capitalizing subsequent
expenditures are recognized in profit or loss for the current period or included in the cost of the relevant
asset when incurred, based on the beneficiary. For the replaced portion, its carrying amount is
derecognized.
(2) Depreciation Methods for Various Fixed Assets
The Group uses the straight-line method to calculate depreciation. Depreciation begins when fixed
assets are ready for their intended use and ceases upon derecognition or when they are classified as
non-current assets held for sale. Excluding impairment provisions, the Group determines the annual
depreciation rates for various categories of fixed assets based on asset class, estimated useful life, and
estimated residual value as follows:
Annual Depreciation Rate
Category Useful Life (Years) Residual Value Rate (%)
(%)
Buildings and Structures 20–35 5 4.75–2.71
Machinery and equipment 8–20 5 11.88–4.75
Transportation and Other 5–8 - 20–12.50
For fixed assets for which impairment reserves have been recognized, the depreciation rate shall be
determined by deducting the cumulative amount of impairment reserves already recognized.
(3) For the impairment testing methods and the method for recognizing impairment reserves for fixed assets,
please refer to Note 3, 22.
(4) At the end of each fiscal year, the Group reviews the useful lives, estimated net salvage values, and
depreciation methods of its fixed assets.
If there is a difference between the estimated useful life and the original estimate, the useful life of the
fixed assets is adjusted; if there is a difference between the estimated net salvage value and the original
estimate, the estimated net salvage value is adjusted.
CSG Holding Co., Ltd.
Notes to the Financial Statements
(5) Disposal of Fixed Assets
When a fixed asset is disposed of, or when it is no longer expected to generate economic benefits
through use or disposal, the Group derecognizes the fixed asset. The proceeds from the sale, transfer,
scrapping, or destruction of a fixed asset, net of its carrying amount and related taxes, are recognized in
profit or loss for the current period.
The Group’s cost of construction in progress is determined based on actual project expenditures,
including all necessary project expenditures incurred during the construction period, borrowing costs to
be capitalized prior to the asset reaching its intended usable state, and other related expenses.
Construction in progress is transferred to fixed assets when it reaches its intended usable state. The
criteria for determining the intended usable state shall meet one of the following conditions: The
physical construction (including installation) of the fixed asset has been fully completed or is
substantially complete; trial production or trial operation has been conducted, and the results indicate
that the asset can operate normally or produce stably; or the results of trial operation indicate that it can
operate normally.Expenditures on the construction of the fixed assets are minimal or virtually
nonexistent; the constructed fixed assets have met design or contractual requirements, or are
substantially in line with such requirements.
For the method of calculating impairment losses on construction in progress, see Note 3.22.
The Group’s construction materials refer to various materials prepared for construction in progress,
including construction materials, equipment not yet installed, and tools and equipment prepared for
production.
Purchased construction materials are measured at cost; materials issued for use are transferred to
construction in progress, and any remaining construction materials after project completion are
reclassified as inventories.
For the method of calculating impairment losses on construction materials, see Note 3.22.
In the balance sheet, the ending balance of construction materials is presented under “Construction in
Progress.”
(1) Recognition Principles for Capitalization of Borrowing Costs
Borrowing costs incurred by the Group that are directly attributable to the construction or production of
assets that meet the criteria for capitalization are capitalized and included in the cost of the relevant
assets; other borrowing costs are recognized as expenses at the time of occurrence based on their
amount and included in current period profit or loss. Borrowing costs are capitalized when they meet all
of the following conditions:
CSG Holding Co., Ltd.
Notes to the Financial Statements
① Asset expenditures have been incurred; such expenditures include payments made in the form of
cash, transfers of non-cash assets, or the assumption of interest-bearing debt for the acquisition,
construction, or production of assets that meet the criteria for capitalization;
② Borrowing costs have been incurred;
③ The construction or production activities necessary to bring the asset to its intended usable or
saleable condition have commenced.
(2) Period of Capitalization of Borrowing Costs
The Group ceases to capitalize borrowing costs when the construction or production of an asset that
meets the criteria for capitalization reaches its intended state of readiness for use or sale. Borrowing
costs incurred after the asset that meets the criteria for capitalization has reached its intended state of
readiness for use or sale are recognized as an expense in the period in which they are incurred and
included in current profit or loss.
If there is an abnormal interruption in the construction or production of an asset that meets the
capitalization criteria, and the interruption lasts for more than three consecutive months, the
capitalization of borrowing costs is suspended; borrowing costs incurred during periods of normal
interruption continue to be capitalized.
(3) Calculation Method for the Capitalization Rate and Amount of Borrowing Costs
For designated borrowings, the amount capitalized is the actual interest expense incurred during the
current period, less any interest income earned on undrawn funds deposited in a bank or investment
income from temporary investments. For general borrowings, the capitalized amount is determined by
multiplying the weighted average of asset expenditures exceeding those of designated borrowings by
the capitalization rate applicable to the general borrowings. The capitalization rate is calculated based
on the weighted average interest rate of the general borrowings.
During the capitalization period, all exchange differences on foreign currency-denominated
special-purpose loans are fully capitalized; exchange differences on foreign currency-denominated
general-purpose loans are recognized in current period profit or loss.
The Group’s intangible assets include land use rights, patents and proprietary technology, mineral
mining rights, and others.
Intangible assets are initially measured at cost, and their useful lives are analyzed and determined at
the time of acquisition.For intangible assets with a finite useful life, amortization is calculated over the
estimated useful life using a method that reflects the expected pattern of economic benefits associated
with the asset, starting from the date the asset is available for use; if the expected pattern of economic
benefits cannot be reliably determined, the straight-line method is used; intangible assets with an
indefinite useful life are not amortized.
The amortization methods for intangible assets with finite useful lives are as follows:
CSG Holding Co., Ltd.
Notes to the Financial Statements
Amortization
Useful Life Basis for Determining Useful Life Remarks
Method
Straight-line
Land use rights 30–70 years Warrant
amortization
Patent Rights and Amortized on a
Proprietary Technology straight-line basis
Amortized over
Mining rights 16–20 years Warrants, expected income period
the useful life
Straight-line
Other 2–10 years Estimated useful life
amortization
At the end of each fiscal year, the Group reviews the useful lives and amortization methods of intangible
assets with finite useful lives. If there are differences from previous estimates, the original estimates are
adjusted and treated as changes in accounting estimates.
If, at the balance sheet date, it is estimated that an intangible asset will no longer generate future
economic benefits for the enterprise, the entire carrying amount of that intangible asset is transferred to
current profit or loss.
For the impairment testing method for intangible assets, see Note 3.22.
The Group’s research and development (R&D) expenses consist of expenditures directly related to the
Company’s R&D activities, including employee compensation for R&D personnel, direct input costs,
depreciation expenses and deferred expenses, design costs, equipment commissioning costs,
amortization of intangible assets, external R&D outsourcing costs, and other expenses. Among these,
the salaries of R&D personnel are allocated to R&D expenses based on project man-hours.The costs of
equipment, production lines, and premises shared by R&D activities and other production and business
operations are allocated to R&D expenses based on the proportion of working hours and floor space.
The Group classifies expenditures on internal research and development projects into research-phase
expenditures and development-phase expenditures.
Expenditures incurred during the research phase are recognized in current period profit or loss as
incurred.
Expenditures in the development stage may be capitalized only if all of the following conditions are met:
it is technically feasible to complete the intangible assets so that they are available for use or sale; there
is an intention to complete the intangible assets and use or sell them;The manner in which the
intangible assets will generate economic benefits includes demonstrating that there is a market for
products produced using the intangible assets or for the intangible assets themselves; if the intangible
assets are to be used internally, their usefulness must be demonstrated; there are sufficient technical,
financial, and other resources to complete the development of the intangible assets, and the Group has
the capability to use or sell the intangible assets; and expenditures attributable to the development
phase of the intangible assets can be measured reliably. Development expenditures that do not meet
the above conditions are recognized in profit or loss for the current period.
The Group’s research and development projects enter the development stage after meeting the above
conditions and undergoing technical and economic feasibility studies, resulting in project approval.
CSG Holding Co., Ltd.
Notes to the Financial Statements
Capitalized development-stage expenditures are presented as development expenditures on the
balance sheet and are reclassified as intangible assets on the date the project is ready for its intended
use.
Capitalization criteria for specific R&D projects:
Expenditures incurred during the research phase are recognized in profit or loss in the period in which
they are incurred. Expenditures incurred during the design and testing phases prior to mass production,
which relate to the final application of production processes, are classified as development expenditures
and are capitalized if they meet the following conditions:
· The development of the production process has been thoroughly evaluated by the technical team;
·Management has approved the budget for the development of the production process;
· Analysis from preliminary market research indicates that the products manufactured using the
production process have market potential;
· There is sufficient technical and financial support to carry out the development activities and
subsequent large-scale production; and the expenditures related to the development of the production
process can be reliably allocated. If it is not possible to distinguish between expenditures incurred
during the research phase and those incurred during the development phase, all R&D expenditures
incurred shall be recognized in current period profit or loss.
Impairment of assets such as long-term equity investments in subsidiaries, fixed assets, property, plant,
and equipment, construction in progress, right-of-use assets, intangible assets, and goodwill (excluding
inventories, investment properties measured at fair value, deferred tax assets, and financial assets) is
determined as follows:
At the balance sheet date, the Group assesses whether there are any indications that an asset may be
impaired. If such indications exist, the Group estimates the asset’s recoverable amount and performs an
impairment test. Goodwill arising from business combinations, intangible assets with indefinite useful
lives, and intangible assets not yet ready for use are tested for impairment annually, regardless of
whether there are indications of impairment.
Recoverable amount is determined as the higher of the asset’s fair value less costs to sell and the
present value of the asset’s estimated future cash flows.The Group estimates the recoverable amount
on an individual asset basis; where it is difficult to estimate the recoverable amount of an individual
asset, the recoverable amount is determined on the basis of the asset group to which the asset belongs.
The identification of an asset group is based on whether the primary cash inflows generated by the
asset group are independent of the cash inflows from other assets or asset groups.
When the recoverable amount of an asset or asset group is lower than its carrying amount, the Group
writes down the carrying amount to the recoverable amount, with the write-down amount recognized in
profit or loss for the current period, and a corresponding impairment provision is recognized.
For the purpose of goodwill impairment testing, the carrying amount of goodwill arising from a business
combination is allocated to the relevant asset groups using a reasonable method from the acquisition
CSG Holding Co., Ltd.
Notes to the Financial Statements
date; where allocation to the relevant asset groups is impractical, it is allocated to the relevant group of
asset groups. The relevant asset groups or group of asset groups are those that benefit from the
synergies of the business combination and do not exceed the reporting segments identified by the
Group.
During impairment testing, if there are indications of impairment for an asset group or portfolio of asset
groups associated with goodwill, impairment testing is first performed on the asset group or portfolio of
asset groups excluding goodwill to calculate the recoverable amount and recognize the corresponding
impairment loss. Subsequently, impairment testing is performed on the asset group or portfolio of asset
groups including goodwill, comparing its carrying amount with the recoverable amount; if the
recoverable amount is lower than the carrying amount, an impairment loss on goodwill is recognized.
Once asset impairment losses are recognized, they are not reversed in subsequent accounting periods.
Deferred expenses incurred by the Group are measured at historical cost and amortized on a
straight-line basis over the estimated period of benefit. For deferred expense items that do not provide
benefits in future accounting periods, the entire amortized balance is recognized in profit or loss for the
current period.
(1) Scope of Employee Benefits
Employee compensation refers to all forms of remuneration or compensation provided by an entity to
obtain services from employees or to terminate employment relationships. Employee compensation
includes short-term compensation, post-employment benefits, termination benefits, and other long-term
employee benefits. Benefits provided by an entity to employees’ spouses, children, dependents,
survivors of deceased employees, and other beneficiaries are also classified as employee
compensation.
(2) Short-Term Employee Benefits
During the accounting period in which employees render services, the Group recognizes as liabilities
the actual wages, bonuses, and social insurance premiums (including medical, work-related injury, and
maternity insurance premiums) paid on behalf of employees in accordance with prescribed standards
and rates, as well as housing provident fund contributions. These amounts are charged to current profit
or loss or included in the cost of related assets.
(3) Post-employment Benefits
Post-employment benefit plans include defined contribution plans and defined benefit plans. A defined
contribution plan is a post-employment benefit plan under which the entity makes fixed contributions to
an independent fund and has no further payment obligations; a defined benefit plan is any
post-employment benefit plan other than a defined contribution plan.
Defined Contribution Plans
Defined-contribution plans include basic pension insurance, unemployment insurance, and others.
CSG Holding Co., Ltd.
Notes to the Financial Statements
During the accounting period in which employees render service, the contribution amount calculated
under a defined contribution plan is recognized as a liability and included in current profit or loss or the
cost of the related asset.
(4) Termination Benefits
When the Group provides termination benefits to employees, it recognizes the employee benefit liability
arising from such termination benefits and includes it in current profit or loss on the earlier of the
following two dates: when the Group cannot unilaterally withdraw the termination benefits provided due
to a plan to terminate the employment relationship or a proposed reduction in workforce; or when the
Group recognizes costs or expenses related to a restructuring involving the payment of termination
benefits.
(5) Other Long-Term Benefits
Other long-term employee benefits provided by the Group to employees that meet the criteria for a
defined contribution plan shall be accounted for in accordance with the relevant provisions regarding
defined contribution plans set forth above. Those that meet the criteria for a defined benefit plan shall be
accounted for in accordance with the relevant provisions regarding defined benefit plans set forth above;
however, the portion of the related employee benefit cost arising from “changes in the remeasurement
of the net liability or net asset of the defined benefit plan” shall be recognized in profit or loss for the
current period or included in the cost of the related asset.
If an obligation arising from a contingent event meets all of the following conditions, the Group
recognizes it as a provision:
① The obligation is a present obligation of the Group;
② It is highly probable that the settlement of the obligation will result in an outflow of economic
benefits from the Group;
③ The amount of the obligation can be reliably measured.
Provisions are initially measured at the best estimate of the expenditure required to settle the related
present obligation, taking into account factors such as the risks, uncertainties, and the time value of
money associated with the contingent event. Where the time value of money is material, the best
estimate is determined by discounting the related future cash outflows. The Group reviews the carrying
amount of provisions at the balance sheet date and adjusts the carrying amount to reflect the current
best estimate.
If all or part of the expenditure required to settle a recognized provision is expected to be reimbursed by
a third party or another party, the reimbursement amount is recognized as a separate asset only when it
is virtually certain that it will be received. The recognized reimbursement amount does not exceed the
carrying amount of the recognized liability.
CSG Holding Co., Ltd.
Notes to the Financial Statements
(1) General Principles
The Group recognizes revenue when it has satisfied the performance obligations under the contract,
that is, when the customer obtains control of the relevant goods or services.
Where a contract contains two or more performance obligations, the Group allocates the transaction
price to each performance obligation at the contract inception date in proportion to the relative selling
prices of the goods or services promised under each individual performance obligation, and measures
revenue based on the transaction price allocated to each performance obligation.
Performance of a performance obligation is deemed to occur over a period of time if any of the following
conditions are met; otherwise, it is deemed to occur at a point in time:
①The customer obtains and consumes the economic benefits arising from the Group’s performance at
the same time the Group performs its obligations.
②The customer is able to control the goods in progress during the Group’s performance of the
contract.
③The goods produced during the Group’s performance have no alternative use, and the Group has
the right to receive payment for the portion of performance completed to date throughout the contract
period.
For performance obligations satisfied over a period of time, the Group recognizes revenue over that
period based on the stage of completion. If the stage of completion cannot be reasonably determined,
and the Group expects to be compensated for costs already incurred, revenue is recognized based on
the amount of costs already incurred until the stage of completion can be reasonably determined.
For performance obligations satisfied at a point in time, the Group recognizes revenue when the
customer obtains control of the relevant goods or services. In determining whether the customer has
obtained control of the goods or services, the Group considers the following indicators:
① The Group has a present right to receive payment for the goods or services, meaning the customer
has a present obligation to pay for them.
② The Group has transferred legal title to the goods to the customer, meaning the customer now holds
legal title to the goods.
③ The Group has transferred physical possession of the goods to the customer, meaning the customer
is in physical possession of the goods.
④ The Group has transferred the significant risks and rewards of ownership of the goods to the
customer, meaning the customer has assumed the significant risks and rewards of ownership of the
goods.
⑤ The customer has accepted the goods or services.
⑥ Other indications that the customer has obtained control of the goods.
CSG Holding Co., Ltd.
Notes to the Financial Statements
(2) Specific Methods
The Group’s revenue primarily derives from the following business activities: sales of products,
provision of external consulting services, and processing services.
Sales of Products
The Group manufactures and sells float glass, photovoltaic glass, architectural glass, solar
industry-related products, electronic glass, and display devices.
For domestic sales, the Group ships products to the agreed delivery location in accordance with the
contract or has them picked up by the buyer, and recognizes revenue upon the buyer’s confirmation of
receipt or pickup.
For export sales, the Group recognizes revenue after completing export customs clearance procedures
and loading the products onto vessels in accordance with the trade terms specified in the sales
contracts, or after transporting the products to the designated delivery locations.
For revenue from photovoltaic power generation in the solar and other industries, the Group recognizes
revenue when electricity is supplied to the provincial power grid company where each power plant is
located, using the mutually confirmed settlement volume as the monthly sales volume and the feed-in
tariff approved by the National Development and Reform Commission or the contractually agreed-upon
electricity price as the sales unit price.
The credit terms granted by the Group to customers in various industries are consistent with industry
practices and do not contain any significant financing components.
The Group provides product quality warranties for its products and recognizes corresponding provisions.
The Group does not provide any additional services or quality warranties in connection therewith;
therefore, such product quality warranties do not constitute separate performance obligations.
For sales of glass products subject to return clauses, revenue is recognized up to the amount of
cumulative revenue recognized for which it is highly probable that no significant reversal will occur. The
Group recognizes a liability for the expected return amount and, simultaneously, recognizes an asset
equal to the carrying amount of the goods expected to be returned at the time of transfer, less the
estimated costs of recovering those goods (including impairment of the returned goods).
Provision of Consulting and Processing Services
The Group provides consulting and processing services to external parties. Since customers obtain and
consume the economic benefits arising from the Group’s performance simultaneously with the Group’s
performance, the Group recognizes revenue based on the stage of completion. The stage of completion
is determined by the ratio of costs incurred to estimated total costs. At the balance sheet date, the
Group re-estimates the stage of completion for services already performed to reflect changes in the
status of performance.
When the Group recognizes revenue based on the stage of completion of services rendered, the portion
for which the Group has obtained an unconditional right to receive payment is recognized as accounts
receivable, while the remaining portion is recognized as a contract asset. The Group recognizes an
allowance for expected credit losses against both accounts receivable and contract assets. If the
CSG Holding Co., Ltd.
Notes to the Financial Statements
contract consideration received or receivable by the Group exceeds the value of services rendered, the
excess is recognized as contract liabilities.The Group presents contract assets and contract liabilities
under the same contract on a net basis.
Contract costs include incremental costs incurred to secure the contract and costs to fulfill the contract.
Incremental costs incurred to obtain a contract refer to costs that would not have been incurred had the
Company not obtained the contract (such as sales commissions). If such costs are expected to be
recovered, the Company recognizes them as contract acquisition costs and classifies them as an asset.
Other expenditures incurred by the Company to obtain a contract, other than incremental costs
expected to be recovered, are recognized in profit or loss for the period in which they are incurred.
Costs incurred to fulfill a contract that do not fall within the scope of Chinese Accounting Standards for
Business Enterprises (such as inventories) and simultaneously meet the following conditions are
recognized by the Company as contract fulfillment costs and classified as an asset:
① The costs are directly attributable to a current or anticipated contract, including direct labor, direct
materials, manufacturing overhead (or similar costs), costs explicitly borne by the customer, and other
costs incurred solely for the contract;
② The cost increases the Company’s resources available for future fulfillment of performance
obligations;
③ The cost is expected to be recovered.
Assets recognized as contract costs and assets recognized as contract performance costs (hereinafter
referred to as “assets related to contract costs”) are amortized on the same basis as the revenue from
the related goods or services and recognized in profit or loss for the current period.
When the carrying amount of an asset related to contract costs exceeds the sum of the following two
items, the Company recognizes asset impairment losses on the excess amount:
① The remaining consideration expected to be received by the Company from the transfer of the
goods or services related to the asset;
② The estimated costs to be incurred to transfer the related goods or services.
Government grants are recognized when the conditions attached to the grants are met and the grants
are expected to be received.
Government grants for monetary assets are measured at the amount received or receivable.
Government grants for non-monetary assets are measured at fair value; if fair value cannot be reliably
determined, they are measured at a nominal amount of 1 yuan.
CSG Holding Co., Ltd.
Notes to the Financial Statements
Government grants related to assets refer to grants received by the Group that are used to acquire,
construct, or otherwise form long-term assets; all other grants are classified as grants related to income.
Where government documents do not explicitly specify the recipients of the grants, if the grant can
result in the formation of a long-term asset, the portion of the grant corresponding to the value of the
asset is treated as an asset-related grant, and the remaining portion is treated as an income-related
grant; if it is difficult to distinguish between the two, the entire grant is treated as an income-related
grant.
Government grants related to assets are recognized as deferred income and recognized in profit or loss
over the useful life of the related asset using a reasonable and systematic method. Government grants
related to income that are intended to compensate for costs, expenses, or losses already incurred are
recognized in current profit or loss; those intended to compensate for costs, expenses, or losses in
future periods are recognized as deferred income and recognized in current profit or loss in the period in
which the related costs, expenses, or losses are recognized.Government grants measured at their
nominal amount are recognized directly in profit or loss for the current period. The Group applies a
consistent approach to the accounting for identical or similar government grant transactions.
Government grants related to ordinary activities are recognized as other income in accordance with the
substance of the economic transaction. Government grants unrelated to ordinary activities are
recognized as non-operating income.
When a recognized government grant is required to be returned, if the grant was initially recognized by
reducing the carrying amount of a related asset, the carrying amount of the asset is adjusted; if there is
a related deferred income balance, the carrying amount of the deferred income is reduced, and any
excess is recognized in profit or loss for the current period; in other cases, the amount is recognized
directly in profit or loss for the current period.
Income taxes consist of current income taxes and deferred income taxes. Except for adjustments to
goodwill arising from business combinations, or deferred income taxes related to transactions or events
recognized directly in equity, all income taxes are recognized as income tax expense in current profit or
loss.
The Group recognizes deferred income taxes using the balance sheet liability method based on
temporary differences between the carrying amounts of assets and liabilities on the balance sheet date
and their tax bases.
A deferred tax liability is recognized for every taxable temporary difference, unless the taxable
temporary difference arises from the following transactions:
① the initial recognition of goodwill, or the initial recognition of assets or liabilities arising from
transactions that do not constitute a business combination and that, at the time of the transaction, affect
neither accounting profit nor taxable income (except for individual transactions where the initial
recognition of assets and liabilities results in an equal amount of taxable temporary differences and
deductible temporary differences);
CSG Holding Co., Ltd.
Notes to the Financial Statements
② Taxable temporary differences related to investments in subsidiaries, joint ventures, and associates,
where the timing of the reversal of the temporary difference is controlled and it is probable that the
temporary difference will not reverse in the foreseeable future.
For deductible temporary differences, deductible losses, and tax credits that can be carried forward to
future years, the Group recognizes the resulting deferred tax assets to the extent that it is probable that
future taxable income will be available against which the deductible temporary differences, deductible
losses, and tax credits can be offset, unless the deductible temporary difference arises from the
following transactions:
① The transaction is not a business combination and, at the time of the transaction, affects neither
accounting profit nor taxable income (except for individual transactions where the assets and liabilities
initially recognized give rise to equal amounts of taxable temporary differences and deductible
temporary differences);
② For deductible temporary differences related to investments in subsidiaries, joint ventures, and
associates, a corresponding deferred tax asset is recognized if both of the following conditions are met:
the temporary difference is likely to reverse in the foreseeable future, and it is probable that taxable
income will be available in the future against which the deductible temporary difference can be utilized.
At the balance sheet date, the Group measures deferred tax assets and deferred tax liabilities using the
tax rates expected to apply in the period in which the asset is expected to be recovered or the liability is
expected to be settled, and reflects the income tax consequences of the manner in which the asset is
expected to be recovered or the liability is expected to be settled at the balance sheet date.
At the balance sheet date, the Group reviews the carrying amount of deferred tax assets. If it is
probable that sufficient taxable income will not be available in future periods to utilize the benefits of the
deferred tax assets, the carrying amount of the deferred tax assets is written down. The written-down
amount is reversed when it becomes probable that sufficient taxable income will be available.
At the balance sheet date, deferred tax assets and deferred tax liabilities are presented net of each
other when both of the following conditions are met:
① The relevant tax entity within the Group has a legal right to settle current income tax assets and
current income tax liabilities on a net basis;
② The deferred tax assets and deferred tax liabilities relate to income taxes levied by the same tax
authority on the same taxable entity within the Group.
(1) Recognition of Leases
At the commencement of the contract, the Group, as lessee or lessor, assesses whether the customer
under the contract has the right to obtain substantially all of the economic benefits arising from the use
of the identified asset(s) during the period of use and has the right to direct the use of the identified
asset(s) during that period. If one party to the contract transfers the right to control the use of one or
CSG Holding Co., Ltd.
Notes to the Financial Statements
more identified assets for a certain period in exchange for consideration, the Group classifies the
contract as a lease or as containing a lease.
(2) The Group as a Lessee
At the commencement of the lease term, the Group recognizes right-of-use assets and lease liabilities
for all leases, except for short-term leases and leases of low-value assets that are accounted for using
the simplified method.
For the accounting policy for right-of-use assets, see Note 3.30.
A lease liability is initially measured at the present value of the lease payments not yet due at the
commencement date of the lease, calculated using the implicit rate of the lease; if the implicit rate of the
lease cannot be determined, the incremental borrowing rate is used as the discount rate.Lease
payments include: fixed payments and payments that are effectively fixed, net of any lease incentives
where applicable; variable lease payments that depend on an index or rate; the exercise price of a
purchase option, provided the lessee reasonably expects to exercise the option;amounts payable upon
exercising a termination option, provided that the lease term reflects the lessee’s intention to exercise
such option; and amounts expected to be paid based on the residual value of guarantees provided by
the lessee. Subsequently, interest expense on the lease liability for each period of the lease term is
calculated using a fixed periodic rate and recognized in profit or loss for the current period. Variable
lease payments not included in the measurement of the lease liability are recognized in profit or loss
when incurred.
Short-term leases
A short-term lease is a lease with a lease term of 12 months or less at the commencement of the lease,
excluding leases containing a purchase option.
The Group capitalizes lease payments for short-term leases into the cost of the related asset or
recognizes them in profit or loss for the period using the straight-line method over the lease term.
Leases of Low-Value Assets
A lease of low-value assets is a lease where the value of the individual leased asset is less than RMB
The Group capitalizes lease payments for low-value asset leases into the cost of the related assets or
recognizes them in profit or loss for the period using the straight-line method over the lease term.
For low-value asset leases, the Group elects to apply the simplified treatment described above based
on the specific circumstances of each lease.
Lease modifications
If a lease modification occurs and meets all of the following conditions, the Group accounts for the lease
modification as a separate lease: ① the lease modification expands the scope of the lease by adding
one or more right-of-use assets; and ② the additional consideration is equivalent to the separate price
of the expanded portion of the lease, adjusted for the terms of the contract.
CSG Holding Co., Ltd.
Notes to the Financial Statements
Where a lease modification is not accounted for as a separate lease, on the effective date of the
modification, the Group reallocates the consideration of the modified contract, re-determines the lease
term, and remeasures the lease liability based on the present value of the modified lease payments and
the revised discount rate.
If a lease modification results in a reduction in the scope of the lease or a shortening of the lease term,
the Group reduces the carrying amount of the right-of-use assets accordingly and recognizes the
related gain or loss from the partial or complete termination of the lease in profit or loss for the current
period.
For other lease modifications that result in the remeasurement of the lease liability, the Group adjusts
the carrying amount of the right-of-use assets accordingly.
(3) The Group as Lessor
When the Group acts as a lessor, leases that substantially transfer all risks and rewards incidental to
ownership of the asset are recognized as finance leases; all other leases are recognized as operating
leases.
Finance leases
For finance leases, the Group recognizes the net investment in the lease as the carrying amount of
finance lease receivables at the commencement of the lease term. The net investment in the lease is
the sum of the unguaranteed residual value and the present value of lease payments not yet received at
the commencement of the lease term, discounted at the implicit rate of the lease. The Group, as the
lessor, calculates and recognizes interest income for each period of the lease term using a fixed
periodic rate.Variable lease payments received by the Group as the lessor that are not included in the
measurement of the net investment in the lease are recognized in profit or loss when incurred.
The derecognition and impairment of finance lease receivables are accounted for in accordance with
the provisions of Chinese Accounting Standards for Business Enterprises No. 22—Recognition and
Measurement of Financial Instruments and Chinese Accounting Standards for Business Enterprises No.
Operating Leases
For operating leases, the Group recognizes rent as income in each period of the lease term using the
straight-line method. Initial direct costs incurred in connection with operating leases shall be capitalized
and amortized over the lease term on the same basis as the recognition of rental income, with the
amortization charged to income in each period. Variable lease payments received in connection with
operating leases that are not included in the lease receivable are recognized in profit or loss when
incurred.
Lease Modifications
If an operating lease is modified, the Group accounts for it as a new lease from the effective date of the
modification, and any lease receivables or prepaid lease payments related to the original lease are
treated as lease receivables for the new lease.
CSG Holding Co., Ltd.
Notes to the Financial Statements
If a finance lease is modified and meets both of the following conditions, the Group accounts for the
modification as a separate lease: ① the modification expands the scope of the lease by granting the
right to use one or more additional right-of-use assets; and ② the additional consideration is
equivalent to the separate price of the expanded portion of the lease, adjusted for the terms of the
contract.
If a modification to a finance lease is not accounted for as a separate lease, the Group accounts for the
modified lease as follows: ① If the modification takes effect on the lease commencement date and the
lease would be classified as an operating lease, the Group accounts for it as a new lease from the
effective date of the modification, using the net investment in the lease prior to the effective date of the
modification as the carrying amount of the leased asset;② If the modification takes effect on the lease
commencement date and the lease is classified as a finance lease, the Group accounts for it in
accordance with the provisions regarding contract modifications or renegotiations in Chinese
Accounting Standards for Business Enterprises No. 22—Recognition and Measurement of Financial
Instruments.
(1) Criteria for Recognizing Right-of-Use Assets
Right-of-use assets are assets that the Group, as a lessee, has the right to use during the lease term.
At the commencement of the lease term, right-of-use assets are initially measured at cost. This cost
includes: the initial measurement amount of the lease liability; lease payments made on or before the
commencement of the lease term, net of any lease incentives already received; initial direct costs
incurred by the Group as the lessee;costs expected to be incurred by the Group as the lessee for
dismantling and removing the leased asset, restoring the site where the leased asset is located, or
returning the leased asset to the condition specified in the lease terms. The Group, as the lessee,
recognizes and measures such dismantling and restoration costs in accordance with Chinese
Accounting Standards for Business Enterprises No. 13—Contingencies. Subsequent adjustments are
made for any remeasurement of the lease liability.
(2) Depreciation Method for Right-of-Use Assets
The Group uses the straight-line method to calculate depreciation. Where the Group, as the lessee, can
reasonably determine that it will obtain ownership of the leased asset at the end of the lease term,
depreciation is calculated over the remaining useful life of the leased asset. Where the Group cannot
reasonably determine that it will obtain ownership of the leased asset at the end of the lease term,
depreciation is calculated over the shorter of the lease term and the remaining useful life of the leased
asset.
(3) For the impairment testing method and the recognition of impairment losses for right-of-use assets, see
Note 3.22.
In accordance with relevant documents issued by the Ministry of Finance and the State Administration
of Work Safety, the Group’s subsidiaries engaged in the production and sale of polysilicon calculate
CSG Holding Co., Ltd.
Notes to the Financial Statements
work safety expenses on a monthly basis using the actual operating revenue of the previous year as the
basis, applying a degressive rate:
(a) For operating revenue of RMB 10 million or less, 4.5% is allocated;
(b) For the portion of operating revenue between RMB 10 million and RMB 100 million (inclusive),
(c) For the portion of operating revenue between RMB 100 million and RMB 1 billion (inclusive), 0.55%
is allocated;
(d) For the portion of operating revenue exceeding 1 billion yuan, 0.2% shall be allocated.
In accordance with the "Measures for the Allocation and Use of Enterprise Work Safety Expenses" (Cai
Zi [2022] No. 136), the Group’s subsidiaries engaged in mining and processing shall base their
allocation on mining output.
Allocation standards for work safety expenses: For non-metallic mines, 3 yuan per ton for open-pit
mines and 8 yuan per ton for underground mines;
Work safety expenses are primarily used for expenditures related to the improvement, renovation, and
maintenance of safety protection equipment and facilities. When accrued, work safety expenses are
included in the cost of relevant products or in current period profit or loss, and are simultaneously
recorded in the special reserve account.Upon utilization, for expense-type expenditures within the
prescribed scope of use, the special reserve is directly reduced when the expenses are incurred; for
capital expenditures, the incurred expenses are aggregated under the "construction in progress"
account. Upon project completion and reaching the intended usable state, the assets are transferred to
fixed assets, and the special reserve is reduced by the cost of the fixed assets, while the corresponding
amount of accumulated depreciation is recognized. Depreciation is no longer accrued for such fixed
assets in subsequent periods.
The Group continuously evaluates its significant accounting estimates and key assumptions based on
historical experience and other factors, including reasonable expectations regarding future events.
Significant accounting estimates and key assumptions that pose a risk of causing a material adjustment
to the carrying amounts of assets and liabilities in the next fiscal year are listed below:
Classification of Financial Assets
The Group’s significant judgments in determining the classification of financial assets include the
analysis of business models and the characteristics of contractual cash flows.
The Group determines the business model for managing financial assets at the level of the financial
asset portfolio, taking into account factors such as the manner in which the performance of financial
assets is evaluated and reported to key management personnel, the risks affecting the performance of
financial assets and how they are managed, and the manner in which relevant business managers are
compensated.
CSG Holding Co., Ltd.
Notes to the Financial Statements
The Group makes the following key judgments when assessing whether the contractual cash flows of
financial assets are consistent with an underlying lending arrangement: whether the principal is likely to
vary in timing or amount during the term of the financial asset due to prepayments or other reasons; and
whether the interest solely reflects the time value of money, credit risk, other risks inherent in lending,
and the consideration for costs and profits.For example, does the prepayment amount reflect only the
principal not yet paid and interest based on the outstanding principal, as well as reasonable
compensation for the early termination of the contract?
Measurement of expected credit losses on accounts receivable
The Group calculates expected credit losses on accounts receivable using the exposure to default risk
and the expected credit loss rate, with the expected credit loss rate determined based on the probability
of default and the loss given default. In determining the expected credit loss rate, the Group uses data
such as internal historical credit loss experience and adjusts historical data based on current conditions
and forward-looking information.When considering forward-looking information, the Group uses
indicators such as the risk of an economic downturn, changes in the external market environment, the
technological environment, and customer conditions. The Group regularly monitors and reviews the
assumptions related to the calculation of expected credit losses.
Impairment of Fixed Assets, Construction in Progress
At the balance sheet date, the Company assesses non-current assets (excluding financial assets) for
indications of possible impairment and performs an impairment test when there are indications that their
carrying amount may not be recoverable.
An impairment occurs when the carrying amount of an asset or asset group exceeds its recoverable
amount, which is the higher of fair value less costs to sell and the present value of estimated future cash
flows. Fair value less costs to sell is determined by reference to the contract price of similar assets in
arm’s-length transactions or observable market prices, less incremental costs directly attributable to the
disposal of the asset.In determining the present value of estimated future cash flows, significant
judgments must be made regarding the asset’s (or asset group’s) production volume, selling price,
related operating costs, and the discount rate used to calculate the present value. When estimating the
recoverable amount, the Company utilizes all available relevant information, including forecasts of
production volume, selling price, and related operating costs based on reasonable and supportable
assumptions.
Goodwill Impairment
The Group assesses whether goodwill is impaired at least annually. This requires estimating the value
in use of the asset groups to which goodwill has been allocated. In estimating value in use, the Group
must estimate future cash flows from the asset group and select an appropriate discount rate to
calculate the present value of those future cash flows.
Development Expenditures
In determining the amount to be capitalized, management must make assumptions regarding the
asset’s expected future cash flows, the discount rate to be applied, and the estimated period over which
the benefits will be realized.
CSG Holding Co., Ltd.
Notes to the Financial Statements
deferred tax assets
Deferred tax assets should be recognized for all unused tax losses to the extent that it is probable that
sufficient taxable profit will be available against which the losses can be utilized. This requires
management to exercise significant judgment in estimating the timing and amount of future taxable
profit, taking into account tax planning strategies, to determine the amount of deferred tax assets to be
recognized.
There were no changes in accounting policies or accounting estimates during the current period.
IV. Taxes
Tax Type Tax Base Tax Rate
Corporate Income Tax Taxable Income 16.5%, 25%
Taxable Value-Added Amount (The tax
payable is calculated as the balance of
Value-Added Tax taxable sales multiplied by the 3%–13%
applicable tax rate, minus input tax
credits allowed for the current period)
Urban Maintenance and Construction
Actual turnover tax paid 1%–7%
Tax
Education Surcharge Actual amount of turnover tax paid 5%
Tianjin CSG Energy-Saving Glass Co. Ltd. (hereinafter referred to as “Tianjin Energy-Saving Company”)
passed the 2024 re-certification review for high-tech enterprise status and has obtained the “High-Tech
Enterprise Certificate,” which is valid for three years. The company is eligible for a 15% corporate
income tax rate for a period of three years starting from 2024.
Dongguan CSG Engineering Glass Co. Ltd. (hereinafter referred to as “Dongguan Engineering
Company”) passed the 2025 high-tech enterprise qualification review and has obtained the “High-Tech
Enterprise Certificate,” which is valid for three years. It is eligible for a 15% corporate income tax rate for
a period of three years starting from 2025.
Wujiang CSG East China Engineering Glass Co. Ltd. (hereinafter referred to as “Wujiang Engineering
Company”) passed the 2023 re-certification review for high-tech enterprise status and has obtained the
“High-Tech Enterprise Certificate,” which is valid for three years. The company is eligible for a 15%
corporate income tax rate for the three-year period starting from 2023.
Dongguan CSG Solar Glass Co. Ltd. (hereinafter referred to as “Dongguan Solar Company”) passed
the 2023 high-tech enterprise qualification re-examination and has obtained the “High-Tech Enterprise
Certificate,” which is valid for three years. The company is eligible for a 15% corporate income tax rate
for the three-year period starting from 2023.
CSG Holding Co., Ltd.
Notes to the Financial Statements
Yichang CSG Silicon Materials Co. Ltd. (hereinafter referred to as “Yichang Silicon Materials”) passed
the 2023 re-certification review for high-tech enterprise status and has obtained the “High-Tech
Enterprise Certificate,” which is valid for three years. The company is eligible for a 15% corporate
income tax rate for the three-year period starting from 2023.
Dongguan CSG Photovoltaic Technology Co. Ltd. (hereinafter referred to as “Dongguan Photovoltaic
Company”) passed the 2025 high-tech enterprise qualification re-examination and has obtained the
“High-Tech Enterprise Certificate,” which is valid for three years. The company is eligible for a 15%
corporate income tax rate for the three-year period starting from 2025.
Hebei Vision Glass Co. Ltd. (hereinafter referred to as “Hebei Vision Glass”) passed the 2025
re-certification review for high-tech enterprise status and has obtained the “High-Tech Enterprise
Certificate,” which is valid for three years. The company is eligible for a 15% corporate income tax rate
for the three-year period starting from 2025.
Wujiang CSG Glass Co. Ltd. (hereinafter referred to as “Wujiang CSG Glass”) passed the 2023
re-evaluation for High-Tech Enterprise status and has obtained the “High-Tech Enterprise Certificate,”
which is valid for three years. The company is eligible for a 15% corporate income tax rate for the
three-year period starting from 2023.
Xianning CSG Glass Co. Ltd. (hereinafter referred to as “Xianning Float Glass”) passed the 2023
re-evaluation for High-Tech Enterprise status and has obtained the “High-Tech Enterprise Certificate,”
which is valid for three years. The company is eligible for a 15% corporate income tax rate for the
three-year period starting from 2023.
Xianning CSG Energy-Saving Glass Co. Ltd. (hereinafter referred to as “Xianning Energy-Saving
Company”) passed the 2024 high-tech enterprise qualification re-examination and has obtained the
“High-Tech Enterprise Certificate,” which is valid for three years. The company is eligible for a 15%
corporate income tax rate for a period of three years starting from 2024.
Yichang CSG Optoelectronic Glass Co. Ltd. (hereinafter referred to as “Yichang Optoelectronic
Company”) passed the 2024 high-tech enterprise qualification re-examination and has obtained the
“High-Tech Enterprise Certificate,” which is valid for three years. The company is eligible for a 15%
corporate income tax rate for a period of three years starting from 2024.
Yichang CSG Display Devices Co. Ltd. (hereinafter referred to as “Yichang Display Company”)
successfully passed the 2024 High-Tech Enterprise qualification review and has obtained the
“High-Tech Enterprise Certificate,” which is valid for three years. The company is eligible for a 15%
corporate income tax rate for the three-year period starting from 2024.
Qingyuan CSG Energy-Saving New Materials Co. Ltd. (hereinafter referred to as “Qingyuan
Energy-Saving Company”) passed the 2025 High-Tech Enterprise qualification re-evaluation and has
obtained the “High-Tech Enterprise Certificate,” which is valid for three years. The company will be
eligible for a 15% corporate income tax rate for a period of three years starting from 2025.
Hebei CSG Glass Co. Ltd. (hereinafter referred to as “Hebei CSG Glass”) passed the 2024 high-tech
enterprise qualification review and has obtained the “High-Tech Enterprise Certificate,” which is valid for
three years. The company is eligible for a 15% corporate income tax rate for a period of three years
starting from 2024.
CSG Holding Co., Ltd.
Notes to the Financial Statements
Xianning CSG Optoelectronic Glass Co. Ltd. (hereinafter referred to as “Xianning Optoelectronic
Company”) passed the 2025 re-evaluation for High-Tech Enterprise status and has obtained the
“High-Tech Enterprise Certificate,” which is valid for three years. The company is eligible for a 15%
corporate income tax rate for a period of three years starting from 2025.
Zhaoqing CSG Energy-Saving Glass Co. Ltd. (hereinafter referred to as “Zhaoqing Energy-Saving
Company”) was recognized as a high-tech enterprise in 2025 and has obtained the “High-Tech
Enterprise Certificate,” which is valid for three years. It will be subject to a 15% corporate income tax
rate for the three-year period starting from 2025.
Sichuan CSG Energy-Saving Glass Co. Ltd. (hereinafter referred to as “Sichuan Energy-Saving
Company”) is eligible for corporate income tax incentives under the Western Development Strategy and
is subject to a 15% corporate income tax rate for the current fiscal year.
Chengdu CSG Glass Co. Ltd. (hereinafter referred to as “Chengdu CSG Glass”) is eligible for corporate
income tax incentives under the Western Development Strategy and is subject to a 15% corporate
income tax rate for the current fiscal year.
Xian CSG Energy-Saving Glass Technology Co. Ltd. (hereinafter referred to as “Xi’an Energy-Saving
Company”) is eligible for the corporate income tax incentives under the Western Development Strategy
and is subject to a 15% corporate income tax rate for the current fiscal year.
Guangxi CSG New Energy Materials Technology Co. Ltd. (hereinafter referred to as “Guangxi New
Energy Materials Company”) is eligible for corporate income tax incentives under the Western
Development Strategy and is subject to a corporate income tax rate of 15% for the current fiscal year.
Qinghai CSG New Energy Technology Co. Ltd. (hereinafter referred to as “Qinghai New Energy
Company”) is eligible for corporate income tax incentives under the Western Development Initiative and
is subject to a corporate income tax rate of 15% for the current fiscal year.
Yichang CSG New Energy Co. Ltd. (hereinafter referred to as “Yichang CSG New Energy Company”),
Zhaoqing CSG New Energy Technology Co. Ltd. (hereinafter referred to as “Zhaoqing CSG New
Energy Company”), Xianning CSG Photovoltaic New Energy Co. Ltd. (hereinafter referred to as
“Xianning CSG Photovoltaic Company”),Anhui CSG Photovoltaic Energy Co. Ltd. (hereinafter referred
to as “Anhui Photovoltaic Company”), and Suzhou CSG Photovoltaic Energy Co. Ltd. (hereinafter
referred to as “Suzhou Photovoltaic Company”) are classified as national key public infrastructure
projects under Article 87 of the Implementation Regulations of the Enterprise Income Tax Law. They are
eligible for the “three-year exemption and three-year 50% reduction” tax incentive policy, meaning that
starting from the tax year in which they first generate operating income, they are exempt from enterprise
income tax for the first three years and subject to a 50% reduction in enterprise income tax for the fourth
through sixth years.
Anhui CSG Quartz Materials Co. Ltd. (hereinafter referred to as “Anhui Quartz Company”) was
recognized as a high-tech enterprise in 2023 and has obtained the “High-Tech Enterprise Certificate.”
The certificate is valid for three years, and a 15% corporate income tax rate applies for a period of three
years starting from 2023.
Anhui CSG New Energy Materials Technology Co. Ltd. (hereinafter referred to as “Anhui New Energy
Company”) was recognized as a high-tech enterprise in 2023 and has obtained the “High-Tech
CSG Holding Co., Ltd.
Notes to the Financial Statements
Enterprise Certificate.” The certificate is valid for three years, and a 15% corporate income tax rate
applies for the three-year period starting from 2023.
Dongguan CSG Intelligent Equipment Co. Ltd. (hereinafter referred to as “Dongguan Equipment
Company”) was recognized as a high-tech enterprise in 2024 and has obtained the “High-Tech
Enterprise Certificate.” The certificate is valid for three years, and a 15% corporate income tax rate
applies for the three-year period starting from 2024.
Pursuant to the “Announcement on the Value-Added Tax Additional Deduction Policy for Advanced
Manufacturing Enterprises” (Announcement No. 43 of 2023 by the Ministry of Finance and the State
Taxation Administration), the Company’s high-tech subsidiaries are permitted, from January 1, 2023, to
December 31, 2027, to deduct an additional 5% of the current period’s deductible input VAT from the
amount of VAT payable.
V. Notes to the Consolidated Financial Statements
Item Ending Balance Opening Balance
Cash on Hand 151,026
Bank deposits 2,981,011,937 3,367,873,386
Other cash and cash equivalents 160,812,184 53,654,096
Total 3,141,975,147 3,421,527,482
Of which: Total funds held overseas 68,819,786 63,275,963
Total funds subject to restrictions on use
due to mortgages, pledges, or freezes
Item Balance at end of period Opening Balance
Financial assets measured at fair value
with changes recognized in profit or loss
Of which:
Structured deposits 230,000,000 96,000,000
Total 230,000,000 96,000,000
(1) Notes Receivable by Category
Item Ending Balance Beginning Balance
Banker’s Acceptances 1,069,651,635 1,042,625,567
Commercial Acceptances 350,409,591 98,277,176
Total 1,420,061,226 1,140,902,743
CSG Holding Co., Ltd.
Notes to the Financial Statements
(2) Disclosure by bad debt provision method
Ending Balance
Category Carrying Amount allowance for doubtful accounts
Carrying Value
Amount Percentage Amount Allowance Ratio
Notes receivable for
which allowance for
doubtful accounts is
calculated on an
individual basis
Notes receivable for
which allowance for
doubtful accounts is 1,422,318,292 100% 2,257,066 0.16% 1,420,061,226
calculated on a
collective basis
Of which:
Banker's acceptances 1,069,651,635 75.20% 1,069,651,635
Commercial
Acceptances
Total 1,422,318,292 100% 2,257,066 0.16% 1,420,061,226
Continued
Beginning balance
Category Carrying Balance allowance for doubtful accounts
Carrying Value
Amount Ratio Amount Provision ratio
Notes receivable for
which allowance for
doubtful accounts is
calculated on an
individual basis
Notes receivable for
which allowance for
doubtful accounts is 1,141,735,264 100% 832,521 0.07% 1,140,902,743
calculated on a
collective basis
Of which:
Banker's acceptances 1,042,625,567 91% 1,042,625,567
Commercial
Acceptances
Total 1,141,735,264 100% 832,521 0.07% 1,140,902,743
Allowance for doubtful accounts based on commercial acceptance bill portfolio:
Ending Balance
Name allowance for doubtful
Carrying Amount Provision Ratio
accounts
Commercial Acceptances 352,666,657 2,257,066 0.64%
Total 352,666,657 2,257,066 0.64%
CSG Holding Co., Ltd.
Notes to the Financial Statements
(3) Details of the Allowance for Doubtful Accounts Accrued, Recovered, or Reversed During the Period
Allowance for doubtful accounts for the current period:
Changes During the Period
Beginning
Category Recovered or Ending Balance
Balance Provision Write-off Other
Reversed
Commercial
Acceptances
Total 832,521 1,424,545 2,257,066
(4) Notes receivable pledged by the Company at the end of the period
Item Amount pledged at the end of the period
Banker’s Acceptances 734,789,756
Total 734,789,756
(5) Notes receivable endorsed or discounted by the Company as of the end of the period and not yet
due as of the balance sheet date
Item Amount not derecognized at the end of the period
Banker’s acceptances 472,820,885
Total 472,820,885
(1) Disclosure by Age
Age Ending Book Balance Opening Balance
Within 1 year (including 1 year) 1,690,799,801 1,570,990,322
Total 1,974,658,557 1,863,140,612
(2) Disclosure by bad debt provision method
Ending Balance
Category Carrying Amount allowance for doubtful accounts
Carrying Value
Amount Percentage Amount Allowance Ratio
Accounts receivable
for which an
allowance for doubtful 150,969,997 7.65% 144,973,834 96.03% 5,996,163
accounts is provided
on an individual basis
Accounts receivable
for which allowance 1,823,688,560 92.35% 27,519,672 1.51% 1,796,168,888
for doubtful accounts
CSG Holding Co., Ltd.
Notes to the Financial Statements
Category Ending Balance
is calculated by group
Of which:
Receivables from
non-related parties
Total 1,974,658,557 100% 172,493,506 8.74% 1,802,165,051
Continued
Beginning Balance
Category Carrying Balance allowance for doubtful accounts
Carrying Value
Amount Ratio Amount Allowance Ratio
Accounts receivable
for which an
allowance for
doubtful accounts is
provided on an
individual basis
Accounts receivable
for which allowance
for doubtful accounts
is calculated by group
Of which:
Receivables from
non-related parties
Total 1,863,140,612 100% 176,512,931 9.47% 1,686,627,681
Number of categories for individual allowance for doubtful accounts:
Name Beginning Balance Ending Balance
allowance for allowance
Carrying Accrual
doubtful Book Balance for doubtful Reason for provision
Amount ratio
accounts accounts
This primarily reflects the
transfer of commercial
acceptance bills issued by
Evergrande and its
subsidiaries—which were
endorsed by customers but
Total for could not be honored—from
Individual 169,387,012 155,963,004 150,969,997 144,973,834 96.03% notes receivable to accounts
Allowances receivable, as well as the
partial or full allowance for
doubtful accounts on certain
accounts receivable due to
factors such as the
deterioration of customers’
business operations.
Total 169,387,012 155,963,004 150,969,997 144,973,834 96.03%
(3) Details of the Allowance for Doubtful Accounts Accrued, Recovered, or Reversed During the
Current Period
CSG Holding Co., Ltd.
Notes to the Financial Statements
Allowance for doubtful accounts for the current period:
Category Changes During the Period
Beginning
Recovered or Ending Balance
Balance Provision Write-off Other
Reversed
Allowance
for
doubtful
accounts 176,512,931 13,108,476 16,050,199 1,077,702 172,493,506
for
accounts
receivable
Total 176,512,931 13,108,476 16,050,199 1,077,702 172,493,506
(4) Details of Accounts Receivable Actually Written Off During the Period
Item Amount Written Off
Accounts Receivable Actually Written Off 1,077,702
(5) Top Five Accounts Receivable and Contract Assets by Debtor at the End of the Period
Ending Balance
Percentage of Total
End-of-Period End-of-Period of Allowance for
End-of-period End-of-Period
Balance of Balance of Accounts Doubtful Accounts
Company Name balance of Balance of Accounts
Accounts Receivable and and Impairment
contract Receivable and
Receivable Contract Assets Reserve for
assets Contract Assets
Contract Assets
Total of the top 5
accounts
receivable by
balance
Total 667,302,047 667,302,047 33.79% 5,853,011
(1) Classification of Accounts Receivable Financing
Item Ending Balance Beginning Balance
notes receivable 533,418,878 798,603,111
Total 533,418,878 798,603,111
Item Ending Balance Beginning Balance
Other Receivables 54,386,121 165,872,735
Total 54,386,121 165,872,735
(1) Other receivables
CSG Holding Co., Ltd.
Notes to the Financial Statements
Nature of Receivables Closing Book Balance Opening Balance
Receivables from Talent Fund (Note) 171,000,000
Advances 31,323,273 31,056,939
Prepaid Purchases 10,366,164 10,366,164
Deposits 12,767,829 9,026,138
Contingency fund loans 743,145 567,991
Other 11,465,456 8,591,213
Total 66,665,867 230,608,445
Note: These funds constitute government subsidies granted to the Group. The Company entrusted its
wholly-owned subsidiary, Yichang CSG Silicon Materials Co. Ltd., to receive these funds. The Yichang
High-Tech Zone Administrative Committee disbursed the full amount of these funds to Yichang CSG
Silicon Materials Co. Ltd. in 2014. Upon receipt of the funds, Yichang CSG Silicon Materials Co. Ltd.
transferred the full amount to Yichang Hongtai Real Estate Co. Ltd. without obtaining proper approval
from the Company’s Board of Directors or other competent authorities at the time.Between February 21,
and transferred the full amount to Yichang Hongtai Real Estate Co. Ltd.
On December 15, 2021, the Company filed a tort claim for damages against Zeng Nan and others, as
well as Yichang Hongtai Real Estate Co. Ltd. The Shenzhen Intermediate Peoples Court formally
accepted the case on January 28, 2022. The first-instance trial for this case was concluded at the
Shenzhen Intermediate Peoples Court on June 21, 2022.On June 4, 2024, the Company received the
first-instance “Civil Judgment” issued by the Shenzhen Intermediate Peoples Court, which dismissed all
of the Company’s claims.In June 2024, the Company filed an appeal with the Guangdong Higher
Peoples Court. The second-instance trial was held at the Guangdong Higher Peoples Court on
September 12, 2024. On December 3, 2025, the Company received the second-instance “Civil
Judgment” issued by the Guangdong Higher Peoples Court, which dismissed the appeal and upheld the
original judgment.In accordance with the principle of prudence, the Company has written off the entire
carrying amount of the aforementioned other receivables, RMB 171 million, for the current fiscal year,
fully reversed the corresponding deferred income of RMB 171 million, and simultaneously reversed the
allowance for doubtful accounts of RMB 51.3 million previously recognized on an individual basis.
Age Closing Balance Opening Balance
Within 1 year (including 1 year) 23,652,003 13,434,205
Total 66,665,867 230,608,445
CSG Holding Co., Ltd.
Notes to the Financial Statements
Balance at end of period
Category Carrying amount allowance for doubtful accounts
Allowance Carrying amount
Amount Percentage Amount
Ratio
Allowance for doubtful
accounts on an individual 11,425,269 17% 11,425,269 100%
basis
Allowance for doubtful
accounts by group
Of which:
Non-affiliated portfolio 55,240,598 83% 854,477 2% 54,386,121
Total 66,665,867 100% 12,279,746 18% 54,386,121
Continued
Beginning balance
Category Carrying Balance allowance for doubtful accounts
Allowance Carrying Value
Amount Ratio Amount
Ratio
Allowance for doubtful
accounts on an individual 183,523,841 80% 63,823,841 35% 119,700,000
basis
Allowance for doubtful
accounts by portfolio
Of which:
Non-affiliated portfolio 47,084,604 20% 911,869 2% 46,172,735
Total 230,608,445 100% 64,735,710 28% 165,872,735
Allowance for doubtful accounts calculated using the general expected credit loss model:
Stage 1 Stage 2 Stage 3
Expected credit
Expected credit losses over
allowance for doubtful accounts Expected credit losses over the entire
the entire life of the loan (with
losses over the next life of the loan (no Total
credit impairment losses
recognized)
losses)
Balance as of January 1, 2025 911,869 63,823,841 64,735,710
Balance as of January 1, 2025,
for the current period
——Transferred to Phase 2
——Transferred to Phase 3
——Reversed to Phase 2
——Reversed to Phase 1
Accrual for the current period -57,087 36,000 -21,087
Reversal for the period 51,333,817 51,333,817
Write-offs for the period
Write-offs for the period 305 1,100,755 1,101,060
CSG Holding Co., Ltd.
Notes to the Financial Statements
allowance for doubtful accounts Stage 1 Stage 2 Stage 3
Other Changes
Balance as of December 31,
Allowance for doubtful accounts for the current period:
Changes During the Period
Beginning
Category Recovered or Write-off or Ending Balance
Balance Provision Other
Reversed cancellation
Allowance for
doubtful
accounts—other
receivables
Total 64,735,710 -21,087 51,333,817 1,101,060 12,279,746
Reversal or recovery of allowance for doubtful accounts during the period
Basis for the Reversal or
Reason for
Entity Name Method of Recovery Original Allowance Recovery
Reversal
for Doubtful Accounts Amount
Offset against other
receivables and deferred
Based on the
Yichang Hongtai Real Estate Based on the income to reverse the
progress of the 51,300,000
Co. Ltd. outcome of litigation previously recognized
litigation
allowance for doubtful
accounts
Item Amount Written Off
Other Receivables 1,101,060
Percentage of
Ending Balance
Nature of the Total Other
Entity Name Ending Balance Aging of Allowance for
Amount Receivables at End
Doubtful Accounts
of Period
Government
Advances Paid 14,000,000 4–5 years 21% 280,000
Agency A
Government
Advance payments 11,256,004 5 years or more 17% 225,120
Agency B
Company C Prepaid accounts 10,366,164 5 years or more 16% 10,366,164
Company D Margin 1,800,000 5 years or more 3% 36,000
Company E Margin, etc. 1,014,672 1–2 years 2% 20,293
Total 38,436,840 59% 10,927,577
CSG Holding Co., Ltd.
Notes to the Financial Statements
(1) Prepayments by Age
Ending Balance Beginning Balance
Age
Amount Percentage Amount Percentage
Within 1 year 133,269,406 99% 119,835,994 98%
Total 134,771,994 100% 121,708,264 100%
(2) Top Five Prepayments by Payee at the End of the Period
Item Balance Percentage of Total Prepayments
Total of the Top Five Prepayments by
Balance
(1) Classification of Inventories
Ending Balance Beginning Balance
Item provision for provision for
Carrying Carrying
Book Value inventory Book balance inventory
amount amount
write-down write-down
Raw
Materials
Work in
progress
Inventory 1,281,629,525 32,037,860 1,249,591,665 1,007,594,584 51,140,704 956,453,880
Consumables 79,695,549 265,053 79,430,496 88,481,788 183,220 88,298,568
Total 2,074,276,710 105,127,155 1,969,149,555 1,685,266,769 97,438,741 1,587,828,028
(2) Provision for inventory write-downs and impairment of contract costs
Increase for the Period Decrease for the Period
Beginning
Item Reversal or Ending Balance
Balance Accrual Other Other
write-off
Raw
materials
Inventory 51,140,704 55,783,044 74,885,888 32,037,860
Consumables 183,220 607,102 525,269 265,053
Total 97,438,741 86,079,076 78,390,662 105,127,155
Balance at end of period Balance at the end of the previous year
Item Carrying Impairment Carrying Carrying Impairment Carrying
Amount Allowance amount amount allowance amount
CSG Holding Co., Ltd.
Notes to the Financial Statements
Balance at end of period Balance at the end of the previous year
Item Carrying Impairment Carrying Carrying Impairment Carrying
Amount Allowance amount amount allowance amount
(1) Non-current assets
held for sale
Total 5,262,859 5,262,859
As of the end of the period, the status of assets held for sale:
Carrying amount at Fair Value at End Estimated selling
Item Timing
the end of the period of Period costs
Certain long-term assets of
the subsidiary to be 5,262,859
disposed of
Total 5,262,859
On December 25, 2025, Yichang Silicon Materials entered into a "Factory Building and Land Sale
Contract" with Ningshi Yichang Material Technology Co. Ltd. (hereinafter referred to as "Yichang
Ningshi") and Shenzhen Ningshi Material Technology Co. Ltd. (hereinafter referred to as "Shenzhen
Ningshi"). Under the contract, Yichang Silicon Materials sold a portion of its factory buildings and land to
Yichang Ningshi, with Shenzhen Ningshi providing a guarantee. As the transfer of ownership is
expected to be completed within the next year, the factory buildings and land intended for sale have
been classified as held for sale.
Item Ending Balance Beginning Balance
VAT to be Deducted 414,086,574 391,080,026
Advance Corporate Income Tax 3,481,337 57,078,630
Input tax pending certification 56,658,842 27,458,400
Total 474,226,753 475,617,056
(1) Investment properties measured at fair value
Buildings, structures, and land use
Item Total
rights
I. Opening Balance 293,712,453 293,712,453
II. Changes During the Period -7,567,066 -7,567,066
Add: Purchases
Transfer from inventories/fixed
assets/construction in progress
Other increases 6,234,198 6,234,198
Less: Disposals
Other Outflows 9,136,007 9,136,007
Change in fair value -9,045,057 -9,045,057
Other
CSG Holding Co., Ltd.
Notes to the Financial Statements
Buildings, structures, and land use
Item Total
rights
III. Ending Balance 286,145,387 286,145,387
Item Ending Balance Beginning Balance
fixed assets 13,897,777,933 13,166,391,449
Total 13,897,777,933 13,166,391,449
(1) Fixed Assets
Buildings and Machinery and Vehicles and Other
Item Total
Structures Equipment Assets
I. Book Value:
(1) Purchases 22,155,458 9,438,951 31,594,409
(2) Transfer from construction in
progress
(3) Other increases 13,759,161 187,700 13,946,861
(1) Disposal or Scrap 343,533 563,678,365 5,115,221 569,137,119
(2) Transferred to construction
in progress
(3) Other decreases 11,877,300 4,061,897 3,219,516 19,158,713
II. Accumulated Depreciation
(1) Accrued 243,918,881 919,667,675 45,446,129 1,209,032,685
(2) Other increases 12,938,167 12,938,167
(1) Disposal or Scrap 143,890 191,871,725 5,009,449 197,025,064
(2) Transferred to construction
in progress
(3) Other decreases 4,818,129 535,794 906,059 6,259,982
III. Allowance for Impairment
(1) Accrued 58,010,882 32,476 58,043,358
(2) Transfer from construction in
progress
CSG Holding Co., Ltd.
Notes to the Financial Statements
Buildings and Machinery and Vehicles and Other
Item Total
Structures Equipment Assets
(1) Disposal or retirement 357,629,563 80,242 357,709,805
(2) Other decreases 19,876,460 19,876,460
IV. Book Value
(2) Fixed Assets for Which Property Certificates Have Not Been Obtained
Item Book Value Reasons for Not Having Obtained Property Certificates
Documents have been submitted but the process has
Buildings and Structures 1,656,787,597 not yet been completed, or the relevant land use rights
certificate has not yet been obtained.
(3) Impairment Testing of Fixed Assets
Recoverable amount is determined as the net amount of fair value less costs to sell
① Dongguan Solar-related assets:
Method of determining
Carrying recoverable Impairment Key Basis for determining key
Item fair value and disposal
Amount amount Loss parameters parameters
costs
Market price: Determined
Fair Value:
based on the buyer’s offer
Determined using the
Market for the asset. Disposal
market price/cost
fixed price, costs: Refer to legal fees,
assets disposal relevant taxes, and direct
Costs: Includes costs
costs costs incurred to bring the
associated with the
asset to a saleable
disposal of the asset
condition.
Total 12,635,514 2,706,170 9,929,344
Recoverable amount is determined based on the present value of estimated future cash flows
CSG Holding Co., Ltd.
Notes to the Financial Statements
① Assets related to Yichang Silicon Materials:
Key
Key parameters Basis for determining key
recoverable parameters
Item Carrying Amount Impairment Loss Forecast Period (Years) for the forecast parameters for the stable
amount for the stable
period period
period
Future cash flows:
Determined based on
management’s annual
business plan and
Asset groups
expectations regarding
comprising fixed Future Cash
Based on the remaining useful future market
assets, intangible Future cash flows, Flows,
assets, and discount rate Discount
equipment. rate: A rate of return that
construction in Rate
reflects the time value of
progress
money in the current
market and the specific
risks associated with the
relevant asset group.
Total 1,258,140,300 1,106,805,400 151,334,900
Item Ending Balance Beginning Balance
construction in progress 4,420,551,577 5,350,375,132
Total 4,420,551,577 5,350,375,132
(1) Status of Construction in Progress
Ending Balance Opening Balance
Item Carrying Impairment Carrying Carrying Impairment Carrying
Amount Reserve amount amount allowance value
New 50,000-ton-per-year High-Purity Crystalline Silicon Project in
Haixi Prefecture, Qinghai Province 3,644,745,822
CSG Holding Co., Ltd.
Notes to the Financial Statements
Item Ending Balance Opening Balance
Yichang South Glass Polysilicon Technical Upgrade Project 678,917,418 318,942,237 359,975,181 644,181,303 217,878,698 426,302,605
Beihai Photovoltaic Green Energy Industrial Park (Phase I) Project 14,962,741 14,962,741 373,394,252 373,394,252
Qingyuan South Glass Phase I Upgrade and Technical Renovation
Project
Xianning Energy-Saving Production Line Renovation and Expansion
Project
Dongguan Photovoltaic Building B 450 MW PERC Cell Technology
Upgrade Project
Wujiang Float Glass (650TD) Photovoltaic Calendering Line
Technical Upgrade Project
Chengdu South Glass 900T/D Line Cold Repair and Technical
Upgrade Project
Other Projects 413,174,308 20,890,402 392,283,906 477,462,133 3,825,388 473,636,745
Total 4,890,398,278 469,846,701 4,420,551,577 5,883,630,706 533,255,574 5,350,375,132
CSG Holding Co., Ltd.
Notes to the Financial Statements
(2) Changes in Significant Projects in the Stage of Construction in Progress During the Current Period
Percentage
Of which:
of
Amount Cumulative Interest Interest
Increase Cumulative
Budgeted Opening Transferred to Ending Project Amount of capitalized Capitalization Source
Project Name for the Project
Amount Balance Fixed Assets Balance Progress Capitalized for the Rate for the of Funds
Period Expenditures
for the Period Interest current Period
Relative to
period
Budget
New
High-Purity Equity
Crystalline Silicon 4,498,192,210 3,644,745,822 362,179,930 486,752,967 3,520,172,785 90% 90% 106,450,782 55,810,415 3.65% and bank
Project in Haixi loans
Prefecture, Qinghai
Province
Equity
Beihai Photovoltaic
and loans
Green Energy
Industrial Park
financial
(Phase I) Project
institutions
Total 9,440,244,010 4,018,140,074 539,358,798 1,022,363,346 3,535,135,526 125,997,017 59,596,528
CSG Holding Co., Ltd.
Notes to the Financial Statements
(3) Provision for Impairment of Construction in Progress for the Current Period
Beginning Increase for the Decreases for the Reason for
Item Ending Balance
Balance Period Period Accrual
Qingyuan South
Glass Phase I
Upgrade and 126,553,412 3,463,231 2,581 130,014,062
Technical
Renovation Project
Dongguan
Photovoltaic
Building B 450 MW
PERC Cell
Technology
Upgrade Project
Yichang South
Glass Polysilicon
Technical Upgrade
Project
Other Projects 3,825,388 20,633,562 3,568,548 20,890,402
Total 533,255,574 125,160,332 188,569,205 469,846,701
(4) Impairment Testing of Construction in Progress
Recoverable amount is determined based on the present value of estimated future cash flows
① For details on the impairment testing of assets related to Yichang Silicon Materials, please refer to
Note 5, 12, (3) “Explanation of Impairment Testing of Fixed Assets”
② Assets related to Qingyuan New Materials:
Key Key
Basis for
Length of parameters parameters
Carrying recoverable Impairment determining key
Item the forecast for the for the
Amount amount Loss parameters for the
period forecast stable
stable period
period period
Future cash flows:
Determined based
on management’s
annual business plan
Asset Based on and expectations
groups the regarding future
Future
comprising remaining market
Future Cash
fixed assets, useful lives developments.
intangible of the main Discount rate: A rate
discount rate Discount
assets, and production of return that reflects
Rate
construction line the time value of
in progress equipment. money in the current
market and the
specific risks
associated with the
relevant asset group.
Total 204,033,369 200,570,138 3,463,231
CSG Holding Co., Ltd.
Notes to the Financial Statements
(1) Right-of-use assets
Item Leased Land Leased Buildings Other Leases Total
I. Book Value
II. Accumulated Depreciation
(1) Accrued 3,432,565 3,025,457 1,101,696 7,559,718
(1) Other 302,878 1,381,894 1,684,772
III. Allowance for Impairment
IV. Carrying Amount
(1) Intangible Assets
Land Use Patent Rights and
Item Mining Rights Other Total
Rights Proprietary Technology
I. Book Value
period
(1) Purchases 3,395,711 7,427,003 10,822,714
(2) Other 9,856 18,234,500 18,244,356
period
(1) Disposal 14,957 14,957
(2) Other 997,014 997,014
II. Accumulated
Amortization
period
CSG Holding Co., Ltd.
Notes to the Financial Statements
Land Use Patent Rights and
Item Mining Rights Other Total
Rights Proprietary Technology
(1) Accrued 33,115,034 32,092,821 78,638,733 6,438,835 150,285,423
period
(1) Disposal 14,957 14,957
(2) Other 381,986 381,986
III. Allowance for
Impairment
Period
(1) Accrued 1,400,245 1,400,245
period
IV. Book Value
Value
value
(2) Status of Land Use Rights for Which Property Certificates Have Not Been Obtained
Item Book Value Reasons for Failure to Obtain Property Certificates
The Company’s management believes that there are no
material legal obstacles to obtaining the relevant land use right
Land Use Rights 3,883,432
certificates, nor will this have a material adverse effect on the
Group’s operations.
(1) Carrying amount of goodwill
Name of investee or
Increases for the Decreases for the
transaction giving rise Opening balance Ending balance
period Period
to goodwill
Tianjin Energy
Conservation Company
Xianning
Optoelectronics 4,857,406 4,857,406
Company
Shenzhen Display
Company
Guangdong Licheng
Company
Total 398,088,156 398,088,156
(2) Provision for impairment of goodwill
CSG Holding Co., Ltd.
Notes to the Financial Statements
Name of investee or
Increases for the Decreases for the
transaction giving rise Beginning balance Ending Balance
Period Period
to goodwill
Shenzhen Display
Company
Xianning
Optoelectronics 4,857,406 4,857,406
Company
Guangdong Licheng
Company
Total 389,494,804 5,553,406 395,048,210
Beginning Increase for the Amortization for
Item Other Decreases Ending Balance
Balance Period the Period
Prepaid Expenses 71,254,985 11,542,414 14,152,886 68,644,513
Total 71,254,985 11,542,414 14,152,886 68,644,513
(1) Unoffset deferred tax assets
Balance at end of period Beginning Balance
Item Deductible Temporary Deductible temporary
deferred tax assets deferred tax assets
Differences differences
Provision for
impairment of 839,388,016 126,353,744 909,339,984 136,694,548
assets
Tax-deductible
losses
Government grants 195,036,329 31,338,741 230,038,184 34,948,104
Accrued expenses 10,211,362 1,531,704 8,572,883 1,285,932
Depreciation of
fixed assets and 119,021,783 19,050,717 142,759,612 22,098,978
other
Total 2,672,456,166 432,978,783 2,330,970,717 372,328,103
(2) Unoffset deferred tax liabilities
Balance at end of period Opening balance
Item Taxable temporary Taxable temporary
deferred tax liabilities deferred tax liabilities
differences differences
Depreciation of
fixed assets
investment
properties
Total 792,826,533 155,245,332 861,893,227 166,503,894
(3) Deferred tax assets or liabilities presented on a net basis
CSG Holding Co., Ltd.
Notes to the Financial Statements
Net amount of Opening balance of
Closing balance of Opening offsetting
deferred tax assets deferred tax assets or
Item deferred tax assets or amount of deferred tax
and liabilities at the liabilities after
liabilities after offsetting assets and liabilities
end of the period offsetting
deferred tax assets 64,742,133 368,236,650 62,333,037 309,995,066
deferred tax liabilities 64,742,133 90,503,199 62,333,037 104,170,857
(4) Breakdown of Unrecognized Deferred Tax Assets
Item Ending Balance Beginning Balance
Deductible temporary differences 699,815,573 1,093,221,903
Tax loss carryforwards 889,564,368 430,583,379
Total 1,589,379,941 1,523,805,282
(5) Unrecognized deferred tax assets arising from tax loss carryforwards will expire in the following
years
Year Balance at end of period Opening Balance Remarks
Total 889,564,368 430,583,379
Ending Balance Beginning Balance
Item Carrying Impairment Carrying Carrying Impairment Carrying
Amount Reserve amount amount allowance value
Prepaid
Construction and 126,386,549 126,386,549 92,818,456 92,818,456
Equipment Costs
Prepaid land
transfer fees
Large-Denomination
Certificates of 60,000,000 60,000,000
Deposit
Total 192,896,549 192,896,549 99,328,456 99,328,456
End of Period
Item Restriction
Carrying amount Carrying Amount Type of Restriction
Status
CSG Holding Co., Ltd.
Notes to the Financial Statements
Item End of Period
Restricted due to
Cash and Cash margin Cash and cash
Equivalents requirements, equivalents
freezes, etc.
Restricted due to
notes receivable 734,789,756 734,789,756 notes receivable
pledges
Restricted due to
inventories 50,000,000 50,000,000 inventories
freeze
construction in Restricted finance construction in
progress leases progress
Total 1,860,752,841 1,860,752,841
Continued
Beginning
Item
Restriction
Book Balance Carrying Value Restriction Type
Status
Cash and Cash Restricted due to margin, Cash and cash
Equivalents freezing, etc. equivalents
notes receivable 871,417,785 871,417,785 Restricted due to pledges notes receivable
fixed assets 411,546,518 96,468,240 Restricted finance leases fixed assets
construction in construction in
progress progress
Total 1,955,060,656 1,639,982,378
(1) Classification of Short-Term Borrowings
Item Ending Balance Beginning Balance
Secured Loans 396,418,363 510,679,484
Unsecured loans 24,500,000 39,000,000
Discounted bills 437,729,966 313,341,815
Super-short-term financing notes 300,000,000 300,000,000
Total 1,158,648,329 1,163,021,299
Type Ending Balance Beginning Balance
Commercial acceptances 342,035,440 295,136,551
Banker’s acceptances 2,084,167,324 1,861,933,756
Supply chain finance bills 131,509,887 87,343,448
Total 2,557,712,651 2,244,413,755
(1) Presentation of Accounts Payable
CSG Holding Co., Ltd.
Notes to the Financial Statements
Item Ending Balance Beginning Balance
Accounts Payable for Materials 1,065,072,111 936,163,974
Accounts Payable for Equipment 613,282,161 930,083,183
Accounts Payable for Construction 775,838,641 995,409,551
Freight payable 200,777,789 172,397,226
Utility expenses payable 91,758,503 47,104,510
Other 23,016,758 10,867,353
Total 2,769,745,963 3,092,025,797
(2) Significant accounts payable that are more than one year past due or overdue
Reason for non-repayment or
Item Balance at end of period
carryover
Not yet settled because the final
Construction and equipment payments,
etc.
not been completed.
Total 968,012,028
Item Ending balance Beginning Balance
Interest Payable 13,362,151 8,946,479
Dividends Payable 34,482,724
Other payables 321,668,864 303,870,052
Total 369,513,739 312,816,531
(1) Interest payable
Item Ending balance Beginning Balance
Interest on long-term borrowings with
interest paid in installments and 8,022,216 7,929,612
principal repaid at maturity
Interest payable on short-term
borrowings
Total 13,362,151 8,946,479
(2) Dividends Payable
Item Ending Balance Beginning Balance
Dividends Payable to Minority
Shareholders
Total 34,482,724
(3) Other payables
Item Ending Balance Beginning Balance
CSG Holding Co., Ltd.
Notes to the Financial Statements
Item Ending Balance Beginning Balance
Deposits and guarantees received 157,634,269 200,015,615
Accrued operating cost (i) 70,850,325 62,190,968
Accrued service fees 7,626,829 7,240,931
Receivables collected on behalf of
others
Amounts Payable to Minority
Shareholders
Other 18,723,739 15,709,444
Total 321,668,864 303,870,052
(i) This item primarily includes expenses that have been incurred but for which invoices had not yet
been received as of the end of the period, including utility charges, professional service fees, and travel
expenses.
Item Balance at End of Period Beginning Balance
contract liabilities 369,377,265 354,215,784
Total 369,377,265 354,215,784
(1) Presentation of Employee Compensation Payable
Increases for the Decreases for the
Item Beginning Balance Ending Balance
Period Period
I. Short-Term
Compensation
II. Post-Employment
Benefits—Defined 190,124,935 190,124,935
Contribution Plan
III. Severance Benefits 6,952,904 33,922,969 20,650,811 20,225,062
Total 347,769,466 2,038,136,615 2,055,964,103 329,941,978
(2) Short-term compensation breakdown
Increases for the Decreases for the
Item Beginning Balance Ending Balance
Period Period
Allowances, and 313,268,258 1,657,234,003 1,691,895,457 278,606,804
Subsidies
premiums
Of which: Medical
insurance premiums
Workers' compensation
insurance premiums
Maternity insurance
premiums
CSG Holding Co., Ltd.
Notes to the Financial Statements
Increases for the Decreases for the
Item Beginning Balance Ending Balance
Period Period
Fund
and Employee 26,367,134 20,703,868 16,677,590 30,393,412
Education Funds
Total 340,816,562 1,814,088,711 1,845,188,357 309,716,916
(3) Schedule of Provisions
Increases for the Decreases for the
Item Beginning Balance Ending Balance
Period Period
Insurance
Insurance
Total 190,124,935 190,124,935
Item Ending Balance Beginning Balance
Value-Added Tax 32,598,517 25,325,222
Corporate Income Tax 14,251,334 24,126,663
Individual Income Tax 4,952,943 5,589,497
Urban Maintenance and Construction
Tax
Education Surcharge 1,367,782 1,150,913
Property Tax 11,179,665 8,439,364
Environmental Protection Tax 1,183,032 1,331,521
Other 6,677,625 6,326,659
Total 73,812,602 73,688,362
Item Balance at end of period Beginning Balance
Long-term borrowings due within one
year
Long-term payables due within one year 199,423,536 84,003,271
Lease liabilities due within one year 3,922,656 3,772,437
Total 1,881,828,060 2,168,856,957
Item Ending Balance Beginning Balance
Input VAT to be transferred 40,910,486 40,029,672
Bills not meeting the criteria for
derecognition
Total 320,616,877 218,529,333
CSG Holding Co., Ltd.
Notes to the Financial Statements
(1) Classification of Long-Term Borrowings
Item Ending Balance Beginning Balance
Secured Loans 5,487,134,015 6,020,234,621
Unsecured loans 3,074,210,000 2,212,455,100
Subtotal 8,561,344,015 8,232,689,721
Less: Long-term borrowings due within
one year
Total 6,882,862,147 6,151,608,472
Item Ending Balance Beginning Balance
Lease Liabilities 26,980,539 25,423,044
Less: Lease liabilities due within one
year
Total 23,057,883 21,650,607
Item Ending Balance Beginning Balance
Long-term payables 594,270,580 464,617,473
Total 594,270,580 464,617,473
(1) Long-term payables disclosed by nature
Item Ending balance Beginning Balance
Lease Payables 793,694,116 548,620,744
Less: Long-term payables due within
one year
Total 594,270,580 464,617,473
Item Ending Balance Opening Balance Reason for Recognition
Pending Litigation 8,615,460 915,847
Estimated mine reclamation
Asset retirement obligations 18,763,409 12,221,373
costs
Total 27,378,869 13,137,220
Beginning Increases for Decreases for Other decreases Ending
Item Source
Balance the Period the Period for the period Balance
Government
grants
Total 487,252,038 26,290,800 39,025,612 173,446,115 301,071,111
CSG Holding Co., Ltd.
Notes to the Financial Statements
For details on other decreases in this period, please refer to Note 5.6, “Notes to Other Receivables.”
Changes for the Period (Increase/Decrease)
Beginning Conversion
Item Issuance of Bonus Ending Balance
Balance of capital Other Subtotal
New Shares Shares
reserves
into shares
Total Number
of Shares
Increases for the Decreases for the
Item Beginning Balance Ending Balance
Period Period
Treasury Stock 296,770,027 296,770,027
Total 296,770,027 296,770,027
Beginning Increases for the Decreases for the
Item Ending Balance
Balance Period Period
Capital Premium (Share
Capital Premium)
Other capital surplus -58,427,175 -58,427,175
Total 590,739,414 590,739,414
Current Period Transactions
Profit (Loss) Net
Beginning Current Period Less: After Tax income
Item Ending Balance
Balance Amount Before Income Tax Attributable to attributable
Income Tax Expense the Parent to minority
Company interest
I. Other
comprehensive
income 159,726,269 -8,895,381 13,980 -8,909,361 150,816,908
reclassified to
profit or loss
Foreign
currency
translation
adjustments
Government
Incentives for
Energy-Saving 2,550,000 2,550,000
Technology
Upgrades
investment
properties
CSG Holding Co., Ltd.
Notes to the Financial Statements
Item Beginning Current Period Transactions Ending Balance
Balance
Total other
comprehensive 159,726,269 -8,895,381 13,980 -8,909,361 150,816,908
income
Increases for the Decreases for the
Item Beginning Balance Ending Balance
Period Period
Workplace Safety
Expenses
Total 5,079,628 7,946,664 6,723,382 6,302,910
Increase for the Decreases for the
Item Beginning Balance Ending Balance
Period Period
Legal Surplus
Reserve
Discretionary surplus
reserve
Total 1,485,514,182 49,200,046 1,534,714,228
Item Current Period Previous Period
Retained earnings at the end of the prior
period before adjustments
Retained earnings at the beginning of
the period after adjustment
Plus: Net profit attributable to owners of
the parent for the current period
Less: Transfer to statutory surplus
reserve
Dividends payable on common stock 211,673,022 767,673,027
Retained earnings at end of period 8,088,993,418 8,224,198,195
Current Period Amount Prior Period Amount
Item
Revenue Cost Revenue Cost
Operating
revenue
Other
Operations
Total 13,718,969,008 11,714,880,100 15,455,386,401 12,848,639,959
(1) Operating Revenue and Operating Costs by Industry (or Product Type)
Current Period Amount Prior Period Amount
Major Product Type (or Industry)
Revenue Cost Revenue Cost
Main Business:
CSG Holding Co., Ltd.
Notes to the Financial Statements
Current Period Amount Prior Period Amount
Major Product Type (or Industry)
Revenue Cost Revenue Cost
Glass Industry 12,149,319,116 10,436,726,457 13,671,134,232 11,313,169,916
Electronic Glass and Display
Devices Industry
Solar and Other Industries 406,706,232 378,525,730 548,058,756 572,472,166
Unclassified Industry Types 3,015,511 - 4,519,263
Inter-segment eliminations -187,454,146 -187,454,146 -263,482,370 -263,482,370
Subtotal 13,571,813,382 11,647,730,791 15,351,552,313 12,811,720,914
Other operations:
Sales of raw materials and other
items
Subtotal 147,155,626 67,149,309 103,834,088 36,919,045
Total 13,718,969,008 11,714,880,100 15,455,386,401 12,848,639,959
(2) Operating Revenue and Operating Cost by Region
Major Operating Current Period Amount Amount for the Previous Period
Regions Revenue Cost Revenue Cost
Mainland China 12,128,781,752 10,416,823,308 14,255,356,141 11,855,024,119
Overseas 1,590,187,256 1,298,056,792 1,200,030,260 993,615,840
Subtotal 13,718,969,008 11,714,880,100 15,455,386,401 12,848,639,959
CSG Holding Co., Ltd.
Notes to the Financial Statements
(3) Revenue from core business operations and cost of core business operations by date of goods transfer
Current Period Amount
Electronic Glass and Display Unallocated
Item Glass Industry Solar and Other Industries Inter-segment eliminations
Devices Industry Industry Type
Revenue Cost Revenue Cost Revenue Cost Revenue Cost Revenue Cost
Operating
Of which:
Recognized at a
specific point in
time
Total 12,149,319,116 10,436,726,457 1,200,226,669 1,019,932,750 406,706,232 378,525,730 3,015,511 - -187,454,146 -187,454,146
CSG Holding Co., Ltd.
Notes to the Financial Statements
Item Current Period Amount Previous Period Amount
Property Tax 54,688,800 50,594,269
Urban Maintenance and Construction
Tax
Education Surcharge 19,427,786 18,446,019
Land Use Tax 20,143,873 24,601,056
Stamp Tax 9,289,575 9,553,533
Environmental Protection Tax 4,782,790 5,673,578
Other 15,268,076 7,321,105
Total 146,502,109 137,971,275
Item Current Period Amount Prior Period Amount
Employee Compensation 410,894,980 413,885,190
Depreciation and Amortization 176,016,765 209,095,206
Office expenses 28,022,520 32,571,052
Union dues 19,718,661 23,248,791
Entertainment and hospitality expenses 15,585,343 19,390,764
Consulting fees 17,931,720 19,853,200
Cafeteria expenses 9,868,097 11,110,572
Travel expenses 10,013,106 10,625,851
Utilities 6,985,382 8,026,076
Vehicle usage fees 4,052,741 4,879,841
Rental expenses 1,294,118 1,143,636
Other 39,973,838 37,191,654
Total 740,357,271 791,021,833
Item Current Period Amount Prior Period Amount
Employee Compensation 205,866,079 217,698,108
Entertainment and Hospitality Expenses 17,678,206 21,955,401
Travel expenses 12,871,714 14,159,772
Sample costs 9,525,527 5,569,396
Rental fees 6,914,758 9,854,040
Depreciation 2,970,493 1,614,884
Advertising expenses 2,634,339 2,153,306
Transportation expenses 2,631,270 2,548,728
CSG Holding Co., Ltd.
Notes to the Financial Statements
Item Current Period Amount Prior Period Amount
Office expenses 2,009,017 2,897,472
Insurance premiums 1,443,170 1,588,780
Vehicle usage fees 756,766 967,835
Other 29,590,343 8,395,140
Total 294,891,682 289,402,862
Item Current Period Amount Prior Period Amount
Research and development expenses 519,332,680 611,497,261
Total 519,332,680 611,497,261
Item Current Period Amount Prior Period Amount
Interest Expense 247,130,850 240,388,865
Interest income -40,278,639 -55,326,006
Foreign exchange gains and losses 1,062,479 -8,852,269
Other 9,295,186 7,754,393
Total 217,209,876 183,964,983
Source of Other Income Current Period Amount Prior Period Amount
Amortization of Government Grants 39,025,612 34,615,832
Tax incentives and rewards 52,405,395 96,754,148
Industrial Support Fund 1,498,020 17,051,187
Government Incentive Funds 66,380,707 57,941,749
Research funding grants 4,360,855 7,006,266
Other 6,353,960 8,478,892
Total 170,024,549 221,848,074
Source of gain on changes in fair value Current period amount Prior period amount
Investment properties measured at fair
-9,045,057 -491,578
value
Total -9,045,057 -491,578
Item Current Period Amount Prior Period Amount
Investment income from financial assets
held for trading
Gain on debt restructuring 2,073,495 6,238,075
CSG Holding Co., Ltd.
Notes to the Financial Statements
Item Current Period Amount Prior Period Amount
Interest on discounted notes -19,002,010 -9,182,820
Income from time deposits, etc. 166,431 924,109
Total -11,090,098 -1,604,000
Item Current Period Amount Prior Period Amount
Bad debt loss on notes receivable -1,424,545 852,654
Bad debt loss on accounts receivable 2,941,723 21,524,234
Bad debt loss on other receivables 51,354,904 1,778,032
Total 52,872,082 24,154,920
Item Current Period Amount Prior Period Amount
Loss on inventory write-downs and
-86,079,076 -147,120,976
impairment of contract costs
Asset impairment losses on fixed assets -58,043,358 -256,805,904
Impairment loss on construction in
-105,283,872 -174,171,999
progress
Asset impairment losses on intangible
-1,400,245 -2,983,345
assets
Goodwill impairment loss -5,553,406
Total -256,359,957 -581,082,224
Source of Gain on Disposal of Assets Current Period Amount Prior Period Amount
Gain (Loss) on Disposal of Non-Current
Assets (Enter "-" for a loss)
Amount Included in
Amount for the Previous
Item Current Period Amount Non-recurring Income for the
Period
Current Period
Uncollectible Amounts 42,798,021 10,593,402 42,798,021
Claim proceeds 5,257,937 1,938,925 5,257,937
Gain on disposal of
non-current assets
Insurance claims 1,869,798 72,058 1,869,798
Other 5,975,760 5,815,607 2,230,565
Total 58,384,012 19,908,997 54,638,817
CSG Holding Co., Ltd.
Notes to the Financial Statements
Amount Included in
Amount for the Previous
Item Current Period Amount Non-recurring Profit or Loss
Period
for the Current Period
Loss on Disposal of
Non-Current Assets
Penalty expenses 2,366,609 575,828 2,366,609
Compensation expenses 2,871,301 1,013,847 2,871,301
Donation expenses 459,600 462,800 459,600
Other 4,231,138 2,735,149 4,073,740
Total 11,487,439 26,948,172 11,330,041
(1) Income Tax Expense Statement
Item Current Period Amount Prior Period Amount
Current Period Income Tax Expense 65,664,150 125,152,481
Deferred income tax expense -71,923,222 -81,846,123
Total -6,259,072 43,306,358
(2) Adjustments to Accounting Profit and Income Tax Expense
Item Current Period Amount
Total Profit 99,075,067
Income Tax Expense Calculated at Statutory/Applicable Tax Rate 19,034,404
Impact of non-deductible costs, expenses, and losses 8,383,277
Impact of utilizing prior-period unrecognized deferred tax assets -843,336
Effect of deductible temporary differences or deductible losses for
which deferred tax assets were not recognized in the current period
Adjustment for the impact of prior-period income taxes 3,712,372
Effect of tax incentives -75,981,195
income tax expense -6,259,072
(1) Cash from operating activities
Other cash received from operating activities
Item Current Period Amount Prior Period Amount
Government Grants 116,637,398 189,142,655
Interest income 34,960,054 54,681,500
Other 42,974,962 27,755,176
Total 194,572,414 271,579,331
Cash paid for other operating activities
CSG Holding Co., Ltd.
Notes to the Financial Statements
Item Current Period Amount Prior Period Amount
Operating Deposits and Guarantees 51,398,907 154,507,379
Office expenses 42,547,196 47,234,629
Cafeteria expenses 43,915,225 42,078,234
Entertainment and hospitality expenses 34,336,128 45,392,810
Insurance premiums 22,486,062 13,196,436
Maintenance expenses 34,375,538 35,860,743
Travel expenses 32,632,784 36,278,144
Rental expenses 16,707,876 11,266,039
Vehicle usage fees 4,955,222 6,562,858
Consulting fees 19,501,104 20,715,630
Bank fees 6,373,373 4,916,361
Other 105,966,189 102,546,498
Total 415,195,604 520,555,761
(2) Cash from investing activities
Other cash outflows from investing activities
Item Current Period Amount Prior Period Amount
Deposits and guarantees paid 73,284,281 46,621,319
Total 73,284,281 46,621,319
Cash paid for significant investing activities
Item Current Period Amount Prior Period Amount
Expenditures on construction projects 1,023,280,563 2,338,449,565
Expenditures on Financial Investments 4,708,224,786 555,254,000
Total 5,731,505,349 2,893,703,565
(3) Cash from financing activities
Other cash received from financing activities
Item Current Period Amount Prior Period Amount
Lease payments received 354,424,862 458,231,000
Loans from minority shareholders 20,000,000
Total 374,424,862 458,231,000
Cash paid for other financing activities
Item Current Period Amount Prior Period Amount
Buyback of treasury stock 296,770,027
CSG Holding Co., Ltd.
Notes to the Financial Statements
Item Current Period Amount Prior Period Amount
Repayment of lease payments 190,398,600 111,060,234
Funding deposits and guarantees 600,000
Financing fees 288,799 986,281
Repayment of minority shareholder
loans
Total 489,057,426 113,846,515
Changes in Liabilities Arising from Financing Activities
Increases during the period Decreases for the Period
Beginning Ending
Item Non-cash Cash Non-cash
balance Cash Flow Balance
changes movements changes
short-term
borrowings
Long-term
borrowings
(including
long-term 8,232,689,721 4,014,996,072 3,686,341,778 8,561,344,015
borrowings
due within
one year)
Total 9,395,711,020 5,370,286,999 6,223,216 5,028,438,537 23,790,354 9,719,992,344
(1) Supplementary Information to the Statement of Cash Flows
Supplementary Information Current Period Amount Prior Period Amount
Flows from Operating Activities
net profit 105,334,139 247,600,543
Add: Provision for asset impairment 203,487,875 556,927,304
Depreciation of fixed assets, depletion
of oil and gas assets, and depreciation 1,209,032,685 1,168,318,243
of productive biological assets
Depreciation of right-of-use assets 7,559,718 4,347,065
Amortization of intangible assets 150,285,423 146,945,804
Amortization of deferred expenses 14,152,886 9,224,629
Loss (gain) on disposal of fixed assets,
intangible assets, and other long-term -20,905,390 -21,561,113
assets (gain shown with a "?" sign)
Loss (gain) from changes in fair value
(enter gain with a “-” sign)
Financial expenses (gains are reported
with a "-" sign)
Investment loss (gains indicated with a
"?")
Decrease (increase shown with a "?"
-58,241,584 -86,970,035
sign) in deferred tax assets
CSG Holding Co., Ltd.
Notes to the Financial Statements
Supplementary Information Current Period Amount Prior Period Amount
Increase (decrease; enter with a "?"
-13,681,638 5,123,912
sign) in deferred tax liabilities
Decrease in inventories (enter "-" for an
-467,400,603 -144,724,209
increase)
Decrease in operating receivables
-141,905,898 286,095,997
(enter increases with a "?" sign)
Increase in operating payables
-116,382,985 -663,594,879
(decreases are indicated with a "?")
Other 7,946,664 6,705,945
Net cash flow from operating activities 1,146,547,297 1,756,923,649
Equivalents:
Cash balance at the end of the period 2,981,170,323 3,367,873,386
Less: Beginning cash balance 3,367,873,386 3,051,261,655
Net increase in cash and cash
-386,703,063 316,611,731
equivalents
(2) Composition of Cash and Cash Equivalents
Item Balance at end of period Beginning Balance
I. Cash 2,981,170,323 3,367,873,386
Of which: Cash on hand 151,026
Bank deposits available for immediate
payment
Other monetary funds available for
immediate payment
II. Cash and Cash Equivalents at the
End of the Period
(3) Monetary funds other than cash and cash equivalents
Reason for exclusion from
Item Current Period Amount Prior Period Amount
cash and cash equivalents
Restricted cash, such as
Other monetary funds 136,004,824 53,654,096
security deposits
Maturity withdrawals from
Other monetary funds 24,800,000
time deposits
Total 160,804,824 53,654,096
(1) Foreign currency monetary items
Foreign Currency Balance
Item Conversion Rate Closing RMB Balance
at End of Period
Cash and cash equivalents 65,572,248
Of which: U.S. dollars 5,568,471 7.0288 39,139,672
Euro 50,750 8.2355 417,955
HKD 6,152,996 0.9032 5,557,386
CSG Holding Co., Ltd.
Notes to the Financial Statements
Foreign Currency Balance
Item Conversion Rate Closing RMB Balance
at End of Period
Japanese Yen 6,422,500 0.0448 287,728
Dirham 10,572,015 1.9071 20,161,890
Singapore dollars 710 5.4606 3,877
Australian dollars 798 4.6867 3,740
accounts receivable 333,252,360
Of which: U.S. dollars 46,138,533 7.0288 324,298,519
Euro 834,785 8.2355 6,874,875
HKD 2,301,778 0.9032 2,078,966
accounts payable 19,447,781
Of which: US dollars 2,512,221 7.0288 17,657,897
Euro 78,982 8.2355 650,459
Japanese yen 22,842,344 0.0448 1,023,337
Pounds 11,000 9.4346 103,781
HKD 13,626 0.9032 12,307
(1) The Company as Lessee
In 2025, the Group’s lease expenses for short-term leases or leases of low-value assets accounted for
RMB 13,159,768
Circumstances involving sale-and-leaseback transactions
In 2025, total cash outflows related to sale-and-leaseback transactions amounted to RMB 67,126,582
VI. Research and Development Expenditures
Item Current period amount Prior Period Amount
Materials 267,824,661 295,364,150
Labor 184,223,164 241,042,562
Expenses and other 67,284,855 75,090,549
Total 519,332,680 611,497,261
Of which: Expensed research and
development expenses
VII. Changes in the scope of consolidation
(1) On March 31, 2025, the Group established CSG VINA COMPANY LIMITED (CSG Vietnam Co.,
Ltd.). As of December 31, 2025, the Group had not made any capital contributions, and the Group holds
CSG Holding Co., Ltd.
Notes to the Financial Statements
(2) On May 23, 2025, the Group established CSG MIDDLE EAST FOR GLASS
INDUSTRY-L.L.C-S.P.C (CSG (Middle East) Glass Industry Co., Ltd.). As of December 31, 2025, the
Group had not made any capital contributions, and the Group held 100% of its shares;
(3) Changshu South Glass New Energy Co., Ltd. and Zhuhai South Glass Commercial Factoring Co.,
Ltd. were deregistered in July 2025 and August 2025, respectively, and are no longer included in the
scope of consolidation.
VIII. Interests in Other Entities
(1) Composition of the Corporate Group
Principal Ownership
Name of Registered Place of Nature of Percentage Method of
Place of
Subsidiary Capital Registration Business Acquisition
Business Direct Indirect
Development,
production, and
Chengdu South Chengdu, Chengdu,
Glass Company China China Established
special glass
products
Sichuan Energy
Chengdu, Chengdu, Continuing
Conservation 180,000,000 Glass Processing 75% 25%
China China Division
Company
Tianjin Energy
Tianjin, Tianjin,
Conservation 336,000,000 Glass Processing 75% 25%
China China Established
Company
Dongguan
Dongguan, Dongguan,
Engineering 270,000,000 Glass Processing 22.22%
China China 77.78% Established
Company
Manufacture and
Dongguan Solar Dongguan, Dongguan, sale of special
Company China China glass and solar Established
glass
Manufacturing
and sales of
Dongguan
Dongguan, Dongguan, high-tech green
Photovoltaic 516,000,000 100%
China China battery products Established
Company
and their
components
Yichang Silicon Manufacture and
Yichang, Yichang,
Materials sale of high-purity 75% 25%
Company silicon materials
Wujiang
Wujiang, Wujiang,
Engineering 320,000,000 Glass Processing 75% 25%
China China Established
Company
Manufacturing and
Hebei South
Yongqing, Yongqing, selling various
Glass Company 48,066,000 75% 25%
China China types of special Established
(Note 1)
glass
Manufacture and
Wujiang South Wujiang, Wujiang, sale of special
Glass Company China China glass and solar Established
glass
CSG Holding Co., Ltd.
Notes to the Financial Statements
Name of Registered Principal Place of Nature of Ownership Method of
Subsidiary Capital Place of Registration Business Percentage Acquisition
CSG Hong Kong Hong
Business Hong Investment
Co. Ltd. (Note 2) Kong, China Kong, China holding Established
Manufacture and
Xianning Float Xianning, Xianning, sale of special
Glass Company China China glass and solar Established
glass
Xianning Energy
Xianning, Xianning, Continuing
Conservation 215,000,000 Glass Processing 75% 25%
China China Division
Company
Manufacture and
Qingyuan Energy
China Qingyuan, sale of various
Conservation 100%
Company
electronic glass
Shenzhen CSG
Shenzhen, Shenzhen, Financial leasing
Financial Leasing 300,000,000 75% 25%
China China business, etc. Established
Co. Ltd.
Production and
Jiangyou Sand Jiangyou, Jiangyou,
Mining Company China China Established
and its by-products
Manufacturing
Shenzhen Shenzhen, Shenzhen, and sales of
Display Company China China display
components
Zhaoqing Energy
Zhaoqing, Zhaoqing,
Conservation 200,000,000 Glass Processing 100%
China China Established
Company
Zhaoqing
Zhaoqing, Zhaoqing,
Automobile 200,000,000 Glass Processing 100%
China China Established
Company
Anhui New Fengyang, Fengyang, Manufacture and
Energy Company 1,750,000,000 China China sale of solar glass Established
Anhui Quartz Fengyang, Fengyang, Quartzite mining
Company China China and processing Established
Anhui Silicon
Fengyang, Fengyang,
Valley Mingdu 360,000,000 Mining 60%
China China Established
Mining Co., Ltd.
Xi'an Energy
Xi'an, Xi'an,
Conservation 150,000,000 Glass Processing 55% 45%
China China Established
Company
Manufacture and
Qinghai New Delingha, Delingha,
sale of high-purity 100% Established
Energy Company 1,350,000,000 China China
silicon materials
Guangxi New
Beihai, Beihai, Manufacture and
Energy Materials 850,000,000 75% 25%
China China sale of solar glass Established
Company
Note (1): The registered capital of Hebei South Glass is denominated in U.S. dollars
Note (2): The registered capital of South Glass (Hong Kong) Co., Ltd. is denominated in Hong Kong
dollars
IX. Government Grants
CSG Holding Co., Ltd.
Notes to the Financial Statements
Amount
New
Recognized Amount
subsidy Other
Accounting Beginning as transferred to Ending Related to
amount for Changes for
Item Balance Non-operating other income balance assets/income
the current the Period
Income for for the period
period
the Period
deferred Related to
income assets/income
Total 487,252,038 26,290,800 39,025,612 173,446,115 301,071,111
Account Current Period Amount Prior Period Amount
Amortization of Government Grants 39,025,612 34,615,832
Other government grants 88,014,938 95,443,375
Total 127,040,550 130,059,207
X. Risks Related to Financial Instruments
The Group’s principal financial instruments include cash and cash equivalents, notes receivable,
accounts receivable, receivables financing, other receivables, non-current assets due within one year,
other current assets, notes payable, accounts payable, other payables, short-term borrowings, financial
liabilities held for trading, non-current liabilities due within one year, long-term borrowings, bonds
payable, lease liabilities, and long-term payables.Details of each financial instrument are disclosed in
the relevant notes. The risks associated with these financial instruments, as well as the Group’s risk
management policies to mitigate these risks, are described below. The Group’s management manages
and monitors these risk exposures to ensure that the aforementioned risks are kept within defined limits.
The primary risks arising from the Group’s financial instruments are credit risk, liquidity risk, and market
risk (including foreign exchange risk, interest rate risk, and commodity price risk).
The Group’s overall risk management plan addresses the unpredictability of financial markets and
seeks to minimize potential adverse effects on the Group’s financial performance.
The Group has established risk management policies to identify and analyze the risks it faces, set
appropriate risk tolerance levels, and design corresponding internal control procedures to monitor the
Group’s risk levels. The Group periodically reassesses these risk management policies and related
internal control systems to adapt to changes in market conditions or the Group’s business operations.
The internal audit department also conducts regular and ad hoc reviews to verify whether the
implementation of internal control systems complies with risk management policies.
The Board of Directors is responsible for planning and establishing the Group’s risk management
framework, formulating the Group’s risk management policies and related guidelines, and overseeing
the implementation of risk management measures. The Group has established risk management
policies to identify and analyze the risks it faces; these policies clearly define specific risks and cover
various aspects, including market risk, credit risk, and liquidity risk management. The Group regularly
assesses changes in the market environment and its business operations to determine whether to
update its risk management policies and systems.The Group’s risk management is carried out by
CSG Holding Co., Ltd.
Notes to the Financial Statements
relevant departments in accordance with policies approved by the Board of Directors. These
departments identify, evaluate, and mitigate relevant risks through close collaboration with other
business units within the Group.
The Group diversifies financial instrument risks through appropriate diversification of investments and
business portfolios, and reduces risks associated with concentration in a single industry, specific region,
or specific counterparty by establishing corresponding risk management policies.
(1) Credit Risk
Credit risk refers to the risk that the Group will incur financial losses due to a counterparty’s failure to
fulfill its contractual obligations.
The Group manages credit risk by classifying it into portfolios. Credit risk primarily arises from bank
deposits, notes receivable, accounts receivable, and other receivables.
The Group’s bank deposits are primarily held with state-owned banks and other large and
medium-sized listed banks; the Group does not anticipate any significant credit risk associated with
these bank deposits.
For notes receivable, accounts receivable, other receivables, and long-term receivables, the Group has
established relevant policies to control credit risk exposure. The Group assesses customers’
creditworthiness based on their financial condition, credit history, and other factors such as current
market conditions, and sets corresponding credit terms accordingly.The Group regularly monitors
customers’ credit records. For customers with poor credit records, the Group takes measures such as
issuing written payment reminders, shortening credit terms, or revoking credit terms to ensure that the
Group’s overall credit risk remains within manageable limits.
The debtors of the Group’s accounts receivable are customers distributed across various industries and
regions. The Group continuously conducts credit assessments of the financial status of accounts
receivable and purchases credit insurance when appropriate.
The Group’s maximum credit risk exposure is the carrying amount of each financial asset on the
balance sheet. The Group has not provided any other guarantees that may expose the Group to credit
risk.Among the Group’s accounts receivable, the top five customers (primarily photovoltaic glass
customers) account for 34% of the Group’s total accounts receivable (2024: 33%). These customers are
all industry leaders with good credit standing, and the Group’s risk of non-collection is relatively
low;Among the Group’s other receivables, the five largest companies by outstanding amount account
for 59% of the Group’s total other receivables (2024: 90%).
(2) Liquidity Risk
Liquidity risk refers to the risk that the Group may face a shortage of funds when fulfilling obligations
settled by the delivery of cash or other financial assets.
In managing liquidity risk, the Group maintains and monitors cash and cash equivalents that
management deems sufficient to meet the Group’s operating needs and mitigate the impact of cash flow
fluctuations. The Group’s management monitors the utilization of bank borrowings and ensures
compliance with loan agreements. Additionally, the Group has obtained commitments from major
CSG Holding Co., Ltd.
Notes to the Financial Statements
financial institutions to provide sufficient standby funding to meet both short-term and long-term funding
needs.
At the end of the period, the Group’s financial liabilities and off-balance-sheet guarantees were
analyzed by maturity of undiscounted remaining contractual cash flows as follows (in RMB):
Balance at the end of the period
Item
Within one year 1 to 2 years 2 to 5 years Over five years Total
Financial liabilities:
short-term
borrowings
Notes Payable 2,557,712,651 2,557,712,651
accounts payable 2,769,745,963 2,769,745,963
Other payables 369,513,739 369,513,739
Non-current
liabilities due within 1,908,963,192 1,908,963,192
one year
Other current
liabilities
long-term
borrowings
Lease liabilities 2,873,893 5,631,404 14,552,586 23,057,883
Long-term
payables
Total financial
liabilities and 9,282,254,322 2,601,066,256 4,950,686,754 250,221,373 17,084,228,705
contingent liabilities
As of the end of the previous year, the Group’s financial liabilities and off-balance-sheet guarantees
were analyzed by maturity of undiscounted remaining contractual cash flows as follows (in RMB):
Opening Balance
Item
Within one year 1 to 2 years 2 to 5 years Over five years Total
Financial liabilities:
short-term
borrowings
Notes Payable 2,244,413,755 2,244,413,755
accounts payable 3,092,025,797 3,092,025,797
Other payables 312,816,531 312,816,531
Non-current
liabilities due within 2,210,464,448 2,210,464,448
one year
Other current
liabilities
long-term
borrowings
Lease liabilities 2,947,236 5,549,939 13,153,432 21,650,607
Long-term payables 115,153,592 302,856,111 46,607,770 464,617,473
CSG Holding Co., Ltd.
Notes to the Financial Statements
Item Opening Balance
Total Financial
Liabilities and
Contingent
Liabilities
The amounts of financial liabilities disclosed in the table above represent undiscounted contractual cash
flows and may therefore differ from the carrying amounts in the balance sheet.
(3) Market Risk
Market risk of financial instruments refers to the risk that the fair value or future cash flows of financial
instruments will fluctuate due to changes in market prices, including interest rate risk, foreign exchange
risk, and other price risks.
Interest Rate Risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate
due to changes in market interest rates. Interest rate risk may arise from recognized interest-bearing
financial instruments and unrecognized financial instruments (such as certain loan commitments).
The Group’s interest rate risk primarily arises from long-term interest-bearing liabilities such as
long-term bank borrowings and bonds payable. Financial liabilities with floating interest rates expose the
Group to cash flow interest rate risk, while financial liabilities with fixed interest rates expose the Group
to fair value interest rate risk. The Group determines the relative proportion of fixed-rate and
floating-rate contracts based on prevailing market conditions and maintains an appropriate mix of fixed-
and floating-rate instruments through regular review and monitoring.
The Group closely monitors the impact of interest rate fluctuations on its interest rate risk.The Group
currently does not have an interest rate hedging policy. However, management is responsible for
monitoring interest rate risk and will consider hedging significant interest rate risks when necessary.
Rising interest rates would increase the cost of new interest-bearing debt and the interest expense on
the Group’s outstanding floating-rate interest-bearing debt, and could have a material adverse effect on
the Group’s financial performance. Management will make timely adjustments based on the latest
market conditions; such adjustments may include arranging interest rate swaps to mitigate interest rate
risk.
The Group holds the following interest-bearing financial instruments (in RMB):
Item Balance at End of Period Opening Balance
Fixed-Rate Contracts 975,348,358 1,078,169,155
Floating-rate contracts 5,907,513,789 5,073,439,317
Total 6,882,862,147 6,151,608,472
For financial instruments held at the balance sheet date that expose the Group to fair value interest rate
risk, the impact on net profit and equity in the above sensitivity analysis reflects the effect of
remeasuring these financial instruments at new interest rates, assuming a change in interest rates at
the balance sheet date.For floating-rate non-derivative instruments held at the balance sheet date that
expose the Group to cash flow interest rate risk, the impact on net profit and equity in the sensitivity
CSG Holding Co., Ltd.
Notes to the Financial Statements
analysis above represents the effect of such interest rate changes on estimated annual interest expense
or income. The analysis for the previous year is based on the same assumptions and methods.
Foreign Exchange Risk
Foreign exchange risk is the risk that the fair value or future cash flows of financial instruments will
fluctuate due to changes in foreign exchange rates. Foreign exchange risk may arise from financial
instruments denominated in currencies other than the functional currency.
Foreign exchange risk primarily arises from the impact of fluctuations in foreign exchange rates on the
Group’s financial position and cash flows. Except for assets denominated in Hong Kong dollars held by
the Group’s subsidiary established in Hong Kong, the proportion of foreign currency assets and
liabilities held by the Group relative to total assets and liabilities is not material. Therefore, the Group
considers the foreign exchange risk it faces to be immaterial.
At the end of the period, the amounts of the Group’s foreign currency financial assets and foreign
currency financial liabilities converted into RMB are as follows (in RMB):
Foreign Currency Liabilities Foreign Currency Assets
Item Balance at the end of
Opening Balance Ending Balance Opening balance
the period
USD 17,657,897 26,836,924 363,438,191 104,808,255
HKD 12,307 67,954 7,636,352 13,218,722
Other 1,777,577 1,535,781 27,750,065 6,949,045
Total 19,447,781 28,440,659 398,824,608 124,976,022
The Group closely monitors the impact of exchange rate fluctuations on its foreign exchange risk.
Management is responsible for monitoring foreign exchange risk and will consider hedging significant
foreign exchange risks when necessary.
As of December 31, 2025, for the Group’s various U.S. dollar-denominated financial assets and
liabilities, if the RMB appreciates or depreciates by 10% against the U.S. dollar, with all other factors
remaining constant, the Group’s net profit would decrease or increase by approximately RMB
The objective of the Group’s capital management policy is to ensure the Group’s ability to continue as a
going concern, thereby providing returns to shareholders and benefiting other stakeholders, while
maintaining an optimal capital structure to reduce the cost of capital.
To maintain or adjust its capital structure, the Group may adjust its financing methods, adjust the
amount of dividends paid to shareholders, return capital to shareholders, issue new shares and other
equity instruments, or sell assets to reduce debt.
The Group monitors its capital structure based on the debt-to-asset ratio (i.e., total liabilities divided by
total assets). At the end of the period, the Group’s debt-to-asset ratio was 57% (end of the previous
year: 55%).
CSG Holding Co., Ltd.
Notes to the Financial Statements
XI. Disclosures on Fair Value
Fair value at the end of the period
Item Level 1 Level 2 Level 3
Fair Value Fair value Fair value Total
Measurement measurement measurement
I. Fair Value
Measurement on -- -- -- --
an Ongoing Basis
Structured
Deposits
Accounts
Receivable 533,418,878 533,418,878
Financing
investment
properties
Total 230,000,000 819,564,265 1,049,564,265
During the current year, there were no reclassifications between Level 1 and Level 2 in the fair value
measurement of the Group’s financial assets and financial liabilities, nor were there any transfers into or
out of Level 3.
For financial instruments traded in active markets, the Group determines their fair value based on active
market quotes; for financial instruments not traded in active markets, the Group uses valuation
techniques to determine their fair value. The valuation models used primarily include discounted cash
flow models and market comparable company models. Input values for valuation techniques mainly
include risk-free rates, benchmark interest rates, exchange rates, credit spreads, liquidity premiums,
and illiquidity discounts.
(1) Quantitative information regarding significant unobservable inputs used in Level 3 fair value
measurements
Fair value at the Valuation Range (weighted
Unobservable Inputs
end of the period technique average)
Equity Instrument
Investments:
Income Approach
Volatility, counterparty
Receivables Financing 533,418,878 (Option Pricing 0%–2%
credit risk, own credit risk
Model)
Standard Land Gross floor area of
Industrial, commercial, Value properties by use, market
residential, and office 286,145,387 Method/Comparable unit price of properties by
real estate Sales Method, use, land price growth rate,
Income Approach development intensity
XII. Related Parties and Related-Party Transactions
The Company has no parent company
CSG Holding Co., Ltd.
Notes to the Financial Statements
For details regarding the Company’s subsidiaries, please refer to Note 8, “Interests in Subsidiaries.”
The Company has no joint ventures or associates.
Relationship between Other Related Parties and the
Names of Other Related Parties
Company
Qianhai Life Insurance Co. Ltd. The Company’s Largest Shareholder
Qianhai Life Xian Hospital Co. Ltd. An affiliate of the Company’s largest shareholder
Qianhai Life Guangzhou General Hospital Co. Ltd. Affiliate of the Company’s Largest Shareholder
Shenzhen Hongtu Construction Co. Ltd. An affiliate of the Company’s largest shareholder
Suzhou Baoqi Logistics Co. Ltd. An affiliate of the Company’s largest shareholder
Shenzhen Jinsheng Supply Chain Co. Ltd. Affiliate of the Company’s Largest Shareholder
(1) Related-party transactions involving the purchase and sale of goods, and the provision and receipt
of services
Table of Purchases of Goods/Receipt of Services
Details of
Amount for the Current Transactions from the
Related Party Related-Party
Period Previous Period
Transactions
Qianhai Life Insurance Co. Ltd. Services Received 6,968,275 7,291,935
Qianhai Life Guangzhou General Hospital
Received Services 222,896 401,585
Co. Ltd.
Total 7,191,171 7,693,520
Statement of Sales of Goods/Provision of Services
Details of
Related Parties Related-Party Current Period Amount Prior Period Amount
Transactions
Qianhai Life Xian Hospital Co. Ltd. Sales of Goods 1,786,505
Other Related Parties Sales of goods 4,113 109,067
Total 4,113 1,895,572
Compensation for Key Management Personnel
Item Current Period Amount Prior Period Amount
Compensation 10,424,800 14,541,200
CSG Holding Co., Ltd.
Notes to the Financial Statements
(1) Accounts Receivable
Ending Balance Beginning Balance
Item Name Related Party Carrying allowance for allowance for
Carrying amount
Amount doubtful accounts doubtful accounts
accounts Shenzhen Hongtu
receivable Construction Co. Ltd.
accounts Shenzhen Jinsheng Supply
receivable Chain Co. Ltd.
Prepaid Qianhai Life Insurance Co.
Expenses Ltd.
Total 8,476,922 7,517,341 9,276,895 7,403,779
(2) Accounts Payable
Item Name Related Party Ending Book Value Opening Balance
Payables Suzhou Baoqi Logistics Co. Ltd. 300,000 300,000
Other payables Qianhai Life Insurance Co. Ltd. 40,000 46,646
contract liabilities Other related parties 360,758 483,657
Total 700,758 830,303
XIII. Commitments and Contingencies
The following are the Group’s capital expenditure commitments as of the balance sheet date that have
been contracted but do not yet require recognition in the financial statements:
Item Balance at End of Period Opening Balance
Buildings, Structures, and Machinery
and Equipment
(1) Significant contingent liabilities as of the balance sheet date
Contingent liabilities arising from pending litigation and arbitration and their financial impact
Amount in
Plaintiff Defendant Subject Matter Court Case Status
Dispute
CSG Suzhou
Jiangsu Huajian Corporate Wujiang District
Construction
Construction Co., Headquarters People's Court of 20,560,667 Pending
Contract Dispute
Ltd. (Note 1) Management Co. Suzhou City
Ltd.
Anhui CSG New
Hefei Construction Hefei
Energy Materials Construction
Engineering Group Intermediate 42,124,294 Pending
Technology Co. Contract Dispute
Co., Ltd. (Note 2) People's Court
Ltd.
Sichuan Anhui CSG New
Construction Fengyang County
Shuncheng Energy Materials 31,972,688 Pending
Contract Dispute Peoples Court
Construction Technology Co.
CSG Holding Co., Ltd.
Notes to the Financial Statements
Amount in
Plaintiff Defendant Subject Matter Court Case Status
Dispute
(Group) Co., Ltd. Ltd.
(Note 3)
Jiangsu Zhongyi Anhui CSG New
Construction Energy Materials Construction Fengyang County
Group Co., Ltd. Technology Co. Contract Dispute Peoples Court
(Note 4) Ltd.
Note 1: There is a dispute regarding construction payments between CSG Suzhou Corporate
Headquarters Management Co. Ltd. and Jiangsu Huajian Construction Co., Ltd. As of the date of this
report, the case is pending.
Note 2: Anhui New Energy and Hefei Construction Group Co., Ltd. are involved in a dispute over
construction payments. As of the date of this report’s announcement, the case is pending.
Note 3: Anhui New Energy and Sichuan Shuncheng Construction (Group) Co., Ltd. are involved in a
dispute over construction payments. As of the date of this report’s announcement, the case is pending.
Note 4: Anhui New Energy and Jiangsu Zhongyi Construction Group Co., Ltd. are involved in a dispute
regarding construction payments. As of the date of this report’s announcement, the case is pending.
XIV. Events Subsequent to the Balance Sheet Date
Profit Distribution After the Balance Sheet Date
Proposed Dividend Per 10 Shares (RMB) 0.2
Profits or dividends declared and approved for distribution 59,792,609
XV. Other Important Matters
(1) Basis for Determining Reportable Segments and Accounting Policies
Based on the Group’s internal organizational structure, management requirements, and internal
reporting system, the Group’s business operations are divided into four reportable segments. These
reportable segments are determined based on financial information required for the Company’s daily
internal management. The Group’s management regularly evaluates the operating results of these
reportable segments to determine the allocation of resources and assess their performance.
The Group’s reportable segments include:
- The Glass Segment, responsible for the production and sale of float glass products, photovoltaic glass
products, architectural glass products, and silica sand required for glass production.
- The Electronic Glass and Display Segment, responsible for the production and sale of display
components and specialty ultra-thin glass products, among others.
- The Solar and Other Segment, which is responsible for the production and sale of polysilicon and solar
cell module products, photovoltaic energy development, and other products.
CSG Holding Co., Ltd.
Notes to the Financial Statements
- Other unallocated segments.
Segment reporting information is disclosed in accordance with the accounting policies and
measurement criteria used by each segment when reporting to management; these accounting policies
and measurement bases are consistent with those used in preparing the financial statements.
(2) Financial Information for Reportable Segments
Electronic
Solar and Unallocated Inter-segment
Item Glass Industry Glass and Total
Other Industries Amount eliminations
Display Devices
Revenue from
external 1,138,346,327 379,301,779 3,015,511
transactions
Inter-segment
revenue
Interest
expense
Depreciation
and 1,014,805,801 222,205,483 132,951,559 11,067,869 1,381,030,712
amortization
Total Profit 336,388,128 -26,474,240 -236,222,662 25,383,841 99,075,067
Total Assets 2,846,975,724 6,954,240,410 1,554,053,136
Total Liabilities 482,366,164 3,060,172,962 3,601,612,658
Increase in
non-current 783,231,721 2,437,089 459,167,066 2,670,327 1,247,506,203
assets
XVI. Notes to Major Items in the Company’s Financial Statements
(1) Disclosure by Age
Age Closing Book Balance Opening Balance
Within 1 year (including 1 year) 274,825,872 110,153,840
Total 274,825,872 110,153,840
(2) Disclosure by bad debt provision method
Ending Balance Beginning Balance
allowance for Balance on the allowance for
Carrying Amount
Category doubtful accounts books doubtful accounts
Carrying Carrying
amount amount
Amount Provision Amount Provision
Ratio Amount Ratio Amount
Ratio Ratio
Accounts
receivable
for which 274,825,872
allowance
for
CSG Holding Co., Ltd.
Notes to the Financial Statements
Category Ending Balance Beginning Balance
doubtful
accounts
is
calculated
by group
Total 274,825,872
(3) Top Five Accounts Receivable and Contract Assets by Debtor at the End of the Period
Percentage of
Ending Balance
End-of-Period Total
End-of-Period of Allowance for
End-of-Period Balance of End-of-Period
Balance of Doubtful Accounts
Company Name Balance of Accounts Balance of
Accounts and Impairment
Contract Assets Receivable and Accounts
Receivable Reserve for
Contract Assets Receivable and
Contract Assets
Contract Assets
Total of the top 5
accounts
receivable by
balance
Total 274,825,872 274,825,872 100%
Item Ending Balance Beginning Balance
Dividends Receivable 27,873,015
Other receivables 2,824,626,577 2,342,796,700
Total 2,852,499,592 2,342,796,700
(1) Dividends receivable
Nature of the item Ending Balance Beginning Balance
Dividends receivable from subsidiaries 27,873,015
Total 27,873,015
(2) Other Receivables
Nature of Receivables Closing Book Balance Opening Balance
Amounts due from related parties 2,819,243,388 2,222,025,032
Other 5,436,095 172,093,539
Total 2,824,679,483 2,394,118,571
Age Ending Book Balance Opening balance
Within 1 year (including 1 year) 2,234,430,826 2,036,223,049
CSG Holding Co., Ltd.
Notes to the Financial Statements
Age Ending Book Balance Opening balance
Over 1 year 590,248,657 357,895,522
Total 2,824,679,483 2,394,118,571
Ending balance
Category Carrying amount allowance for doubtful accounts
Allowance Carrying amount
Amount Percentage Amount
Ratio
Allowance for doubtful
accounts on an individual 36,000 36,000 100%
basis
Allowance for doubtful
accounts by portfolio
Of which:
Related party consolidation 2,819,243,388 100% 2,819,243,388
Non-related party portfolio 5,400,095 16,906 0.31% 5,383,189
Total 2,824,679,483 100% 52,906 2,824,626,577
Continued
Beginning Balance
Category Carrying Balance allowance for doubtful accounts
Allowance Carrying Value
Amount Ratio Amount
Ratio
Allowance for doubtful
accounts on an individual 171,000,000 7% 51,300,000 30% 119,700,000
basis
Allowance for doubtful
accounts by portfolio
Of which:
Related party portfolio 2,222,025,032 93% 2,222,025,032
Non-related party portfolio 1,093,539 21,871 2% 1,071,668
Total 2,394,118,571 100% 51,321,871 2% 2,342,796,700
Allowance for doubtful accounts calculated using the general expected credit loss model:
Stage 1 Stage 2 Stage 3
Expected credit Expected credit
allowance for doubtful Expected credit losses over the entire losses over the entire Total
accounts losses over the next 12 life of the loan (no life of the loan (with
months credit impairment credit impairment
losses) losses recognized)
Balance as of January
Balance as of January
current period
CSG Holding Co., Ltd.
Notes to the Financial Statements
allowance for doubtful Stage 1 Stage 2 Stage 3 Total
accounts
——Transferred to
Phase 2
——Transferred to
Phase 3
——Transferred back
to Phase 2
——Reversed to
Phase 1
Accrual for the current
-4,965 36,000 31,035
period
Reversal for the period 51,300,000 51,300,000
Write-offs for the period
Other changes
Balance as of
December 31, 2025
Allowance for doubtful accounts for the current period:
Changes for the Period
Beginning Ending
Category Recovered or Write-off or
Balance Provision Other Balance
Reversed cancellation
Allowance for
doubtful
accounts—other 51,321,871 31,035 51,300,000 52,906
accounts
receivable
Total 51,321,871 31,035 51,300,000 52,906
Percentage of
Ending balance of
Nature of the Total Other
Company Name Ending Balance Aging allowance for
payment Receivables at End
doubtful accounts
of Period
Entity A Advances 843,509,575 Within 1 year 30%
Entity B Advance payment 321,456,270 Within 1 year 11%
Entity C Advance payment 249,400,642 Within 1 year 9%
Unit D Advance payment 232,307,777 Within 2 years 8%
Unit E Advance payment 228,596,521 Within 2 years 8%
Total 1,875,270,785 66%
Ending Balance Beginning Balance
Item Carrying Carrying Carrying Carrying
Impairment Impairment
Amount amount amount amount
Allowance allowance
CSG Holding Co., Ltd.
Notes to the Financial Statements
Item Ending Balance Beginning Balance
Investment in
subsidiaries 15,000,000 10,537,821,440 10,565,321,440 15,000,000
Total 10,552,821,440 10,550,321,440
(1) Investments in subsidiaries
Changes during the period
Beginning Opening Closing
Additional Provi Ending balance
balance balance of Decrease balance of
Investee sion (Carrying
(Carrying impairment Oth impairment
Investment for Amount)
amount) allowance Investment er allowance
s impair
ment
Chengdu Glass
Company
Sichuan Energy
Conservation 119,256,949 119,256,949
Company
Tianjin Energy
Conservation 247,833,327 247,833,327
Company
Dongguan
Engineering 222,276,243 222,276,243
Company
Dongguan Solar
Company
Dongguan
Photovoltaic 604,099,854 604,099,854
Company
Yichang Silicon
Materials 909,960,170 909,960,170
Company
Wujiang
Engineering 254,401,190 254,401,190
Company
Hebei South
Glass Company
CSG Hong Kong
Co. Ltd.
Wujiang Glass
Company
Jiangyou CSG
Mining
Development Co.
Ltd.
Xianning Float
Glass Company
Xianning Energy
Conservation 165,452,035 165,452,035
Company
Qingyuan Energy
Conservation 885,273,105 885,273,105
Company
CSG Holding Co., Ltd.
Notes to the Financial Statements
Investee Beginning Opening Changes during the period Ending balance Closing
balance balance of (Carrying balance of
Shenzhen CSG
Financial Leasing 133,500,000 133,500,000
Co. Ltd.
Shenzhen
Display Devices 550,765,474 550,765,474
Co., Ltd.
Zhaoqing Energy
Conservation 200,000,000 200,000,000
Company
Zhaoqing CSG
Automotive Glass 159,959,074 159,959,074
Co. Ltd.
Anhui New
Energy Company
Anhui Quartz
Company
Anhui CSG
Silicon Valley
Mingdu Mining 216,000,000 216,000,000
Development Co.
Ltd.
Xi'an Energy
Conservation 82,500,000 82,500,000
Company
Guangxi New
Energy Materials 600,000,000 637,500,000
Company
CGCC (Suzhou)
Corporate
Headquarters 30,000,000 30,000,000
Management Co.,
Ltd.
Shenzhen CSG
Quartz Material 40,000,000 40,000,000
Industry Co. Ltd.
Shenzhen CSG
New Energy
Industry 1,350,000,000 1,350,000,000
Development Co.
Ltd.
Other 242,392,197 15,000,000 50,000,000 192,392,197 15,000,000
Total 10,550,321,440 15,000,000 37,500,000 50,000,000 10,537,821,440 15,000,000
Current Period Amount Prior Period Amount
Item
Revenue Cost Revenue Cost
Operating revenue 3,015,511 4,519,263
Other Operations 269,611,579 334,155,915
Total 272,627,090 338,675,178
CSG Holding Co., Ltd.
Notes to the Financial Statements
Item Current Period Amount Prior Period Amount
Investment income on long-term equity
investments accounted for using the cost 457,149,469 777,322,478
method
Investment income on disposal of long-term
-4,363,221 -1,104,772
equity investments
Investment income from financial assets held
for trading
Income from time deposits, etc. 166,431 924,109
Total 458,624,665 777,558,451
XVII. Supplementary Information
Item Amount Description
Gain (Loss) on Disposal of Non-Current Assets 20,905,390
Government grants recognized in current period profit or loss (excluding
government grants closely related to the Company’s normal business
operations, in compliance with national policies, received in accordance 127,410,847
with established criteria, and having a continuing impact on the
Company’s profit or loss)
Gains or losses arising from changes in the fair value of financial assets
and financial liabilities held by non-financial enterprises, and gains or
losses arising from the disposal of financial assets and financial liabilities, 5,838,417
excluding effective hedging transactions related to the Company’s normal
business operations
Reversal of impairment reserves for receivables tested individually 67,384,016
Gains or losses on debt restructuring 214,501
Gains or losses arising from changes in the fair value of investment
-9,045,057
properties measured using the fair value model
Other non-operating income and expenses, other than those listed above 42,385,071
Less: Income tax effect 20,746,804
Impact on non-controlling interests (after tax) 1,477,174
Total 232,869,207
Earnings per Share
Profit for the Reporting Weighted Average Return on
Period Equity Basic Earnings Per Share Diluted Earnings Per Share
(RMB/share) (RMB/share)
Net profit attributable to
common shareholders
Net profit attributable to
common shareholders of the
Company, excluding -0.79% -0.04 -0.04
non-recurring gains and
losses
CSG Holding Co., Ltd.
Notes to the Financial Statements
CSG Holding Co., Ltd.
April 24, 2026
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