CSG HOLDING CO. LTD.ANNUAL REPORT 2024 Chairman of the Board: CHEN LIN April 2025CSG Annual Report 2024 Section I. Important Notice Content and Paraphrase The Board of Directors and the Supervisory Committee of CSG Holding Co. Ltd. (hereinafter referred to as the Company) and its directors supervisors and senior executives hereby confirm that there are no any fictitious statements misleading statements or important omissions carried in this report and shall take individual and joint legal responsibility for the facticity accuracy and completeness of the whole contents.Ms. Chen Lin Chairman of the Board Ms. Wang Wenxin responsible person in charge of accounting and Ms. Wang Wenxin principal of the financial department (accounting officer) confirm that the Financial Report enclosed in this Annual Report 2024 is true accurate and complete.All directors were present at the meeting of the Board for deliberating the annual report of the Company in person.The future plans development strategies and other forward-looking statements mentioned in this report do not constitute a material commitment of the Company to investors. Investors and relevant parties should pay attention to investment risks and understand the differences between plans forecasts and commitments.The Company has described the risk factors and countermeasures of the Company's future development in detail in this report. Please refer to Section III. Management Discussion and Analysis.The Company is required to comply with the disclosure requirements of "Nonmetallic Building Materials Related Business" in the "Self-regulatory Guidelines for Listed Companies on the Shenzhen Stock Exchange No. 3- Industry Information Disclosure".The deliberated and approved plan of profit distribution in the Board Meeting is distributing cash dividend of RMB 0.7 yuan (tax included) for every 10 shares to all shareholders based on 3070692107shares as at 31 December 2024 0 bonus shares (including tax) will be given and no capital stock will be converted from provident fund. The actual amount of the cash dividend distributed will be determined according to the total share capital on the registration date of the Company's implementation of the profit distribution plan.This report is prepared both in Chinese and English. Should there be any inconsistency between the Chinese and English versions the Chinese version shall prevail. 1CSG Annual Report 2024 Content Section I. Important Notice Content and Paraphrase....1 Section II. Company Profile& Financial Highlights ... 5 Section III. Management Discussion and Analysis ..... 9 Section IV. Corporate Governance ................... 39 Section V. Environment and Social Responsibility ....57 Section VI. Important Events ....................... 62 Section VII. Changes in Shares and Particulars abo.. 86 Section VIII. Preferred shares ..................... 93 Section IX. Bonds ...................................94 Section X. Financial Report ........................ 97 2CSG Annual Report 2024 Documents Available for Reference I. Text of the financial report carrying the signatures and seals of the legal representative responsible person in charge of accounting and person in charge of financial institution; II. Original of the Auditors' Report carrying the seal of the accounting firm and the signatures and seals of the certified public accountants; III. All texts of the Company's documents and original public notices disclosed on the website and papers appointed by CSRC in the report period. 3CSG Annual Report 2024 Paraphrase Items Refers to Contents Company the Company CSG or the Group Refers to CSG Holding Co. Ltd.Foresea Life Refers to Foresea Life Insurance Co. Ltd.Ultra-thin electronic glass Refers to The electronic glass with thickness between0.1~1.1mm AG glass Refers to Anti-glare glass AF glass Refers to Anti-fingerprint glass AR glass Refers to Anti-reflection glass Ice Kirin Refers to CSG's brand for multi-silver high-performanceenergy-saving glass BIPV Refers to Building Integrated Photovoltaic 4CSG Annual Report 2024 Section II. Company Profile& Financial Highlights I. Company information Short form of the stock Southern Glass A、Southern Glass B Stock code 000012、200012 Listing stock exchange Shenzhen Stock Exchange Legal Chinese name of the Company 中国南玻集团股份有限公司 Abbr. of legal Chinese name of the Company 南玻集团 Legal English name of the Company CSG Holding Co. Ltd.Abbr. of legal English name of the Company CSG Legal Representative Chen Lin Registered Add. CSG Building No.1 the 6th Industrial Road Shekou Shenzhen P. R.C.Post Code 518067 Office Add. CSG Building No.1 the 6th Industrial Road Shekou Shenzhen P. R.C.Post Code 518067 Internet website www.csgholding.com E-mail securities@csgholding.com II. Person/Way to contact Secretary of the Board Representative of security affairs Name Xu Lei Yu Xiaojing CSG Building No.1 of the 6th Industrial CSG Building No.1 of the 6th Industrial Contacts add.Road Shekou Shenzhen P. R.C. Road Shekou Shenzhen P. R.C.Tel. (86)755-26860666 (86)755-26860666 Fax. (86)755-26860685 (86)755-26860685 E-mail securities@csgholding.com securities@csgholding.com III. Information disclosure and preparation place The website of the stock exchange where the www.szse.cn company discloses the annual report The name and website of the media where the Securities Times China Securities Journal Shanghai Securities News company discloses the annual report Securities Daily and Juchao Website (www.cninfo.com.cn) The place for preparation of the annual report Office of the Board of Directors of the Company IV. Registration changes of the Company Unified social credit code: 914403006188385775 Changes of main business since listing (if applicable) No changes Previous changes for controlling shareholders (if applicable) No changes 5CSG Annual Report 2024 V. Other relevant information CPA firm engaged by the Company Name of CPA firm Grant Thornton Zhitong Certified Public Accountants LLP 5th Floor Saite Plaza 22 Jianguomenwai Street Chaoyang Offices add. for CPA firm District Beijing Signing Accountants Yang Hua Deng Jinchao Sponsor institute engaged by the Company for performing continuous supervision duties in the report period □ Applicable √ Not applicable Financial consultant engaged by the Company for performing continuous supervision duties in the report period □ Applicable √ Not applicable VI. Main accounting data and financial indexes Whether it has retroactive adjustment or restatement on previous accounting data □Yes √No Changes over 2024 2023 the previous 2022 year Operating income (RMB) 15455386401 18194864366 -15.06% 15198706998 Net profit attributable to shareholders of 2667723181655614446-83.89%2037202500 the listed company (RMB) Net profit attributable to shareholders of the listed company after deducting non- 120793126 1535858783 -92.14% 1819429258 recurring gains and losses (RMB) Net cash flow arising from operating 17569236492759788894-36.34%1957123231 activities (RMB) Basic earnings per share (RMB/Share) 0.09 0.54 -83.33% 0.66 Diluted earnings per share (RMB/Share) 0.09 0.54 -83.33% 0.66 Weighted average ROE 1.93% 12.30% -10.37% 16.78% Changes over As at 31 Dec. 2024 As at 31 Dec. 2023 the end of the As at 31 Dec. 2022 previous year Total assets (RMB) 31220417923 30362057312 2.83% 25904013306 Net assets attributable to shareholders of 1353594979514050840217-3.66%12854883706 the listed company (RMB) The lower of the Company's net profit before and after the deduction of non-recurring gains and losses in the last three fiscal years is negative and the auditor's report of the previous year shows that the Company's going concern ability is uncertain.□ Yes √ No The lower of the net profit before and after the deduction of the non-recurring gains and losses is negative □ Yes √ No 6CSG Annual Report 2024 VII. Accounting Data Differences under and Foreign Accounting Standards 1. Net Income and Equity Differences under CAS and IFRS □ Applicable √ Not applicable No such differences for the Report Period. 2. Net Income and Equity Differences under CAS and Foreign Accounting Standards □ Applicable √ Not applicable No such differences for the Report Period.VIII. Main financial indexes by quarter Unit: RMB Q1 Q2 Q3 Q4 Operating income 3947220433 4131750218 3757912090 3618503660 Net profit attributable to shareholders of the listed 32537753840773402453338172-519677416 company Net profit attributable to shareholders of the listed 29530184637759934628003017-580111083 company after deducting non-recurring gains and losses Net cash flow arising from operating activities 180305094 812979051 359543569 404095935 Whether there are significant differences between the above-mentioned financial index or its total number and the relevant financial index disclosed in the Company's quarterly report and semi-annual report or not □Yes √ No IX. Items and amounts of non-recurring gains and losses √ Applicable □ Not applicable Unit: RMB Item 2024 2023 2022 Note Gains/losses from the disposal of non-current assets (including the 21561113-962813615213059 write-off that accrued for impairment of assets) Government subsidies included in the profit and loss of the current See other period (closely related to the normal operation of the company in income line with national policies and provisions in accordance with the 128276384 118358356 188756525 notes for defined standards except government subsidies that have a details continuous impact on the profit and loss of the company) In addition to the effective hedging business related to the normal operation of the company the profit or loss of fair value changes arising from the holding of financial assets and financial liabilities by 1340745310687031567854 non-financial enterprises and the loss or gain arising from the disposal of financial assets and financial liabilities and available for sale financial assets Reversal of provision for impairment of receivables that have been 1028008887570406389385 individually tested for impairment Profit and loss from debt restructuring 3595184 4908612 The profit and loss arising from the change in fair value of investment real estate measured subsequently using the fair value -491578 model 7CSG Annual Report 2024 Other non-operating income and expenditure except for the 105095691883321214743778 aforementioned items Less: Impact on income tax 26424188 21244208 34242061 Impact on minority shareholders' equity (post-tax) 2668125 3336083 4655298 Total 145979192 119755663 217773242 -- Particulars about other gains and losses that meet the definition of non-recurring gains and losses: □ Applicable √ Not applicable It did not exist that other profit and loss items met the definition of non-recurring gains and losses.Explanation of the non-recurring gains and losses listed in the Explanatory Announcement No.1 on Information Disclosure for Companies Offering their Securities to the Public - Non-recurring Gains and Losses as recurring gains and losses □ Applicable √ Not applicable It did not exist that non-recurring profit and loss items listed in the "Explanatory Announcement No. 1 on Information Disclosure of Companies Offering Securities to the Public - Non-recurring Profit and Loss" were defined as recurring profit and loss items in the report period. 8CSG Annual Report 2024 Section III. Management Discussion and Analysis I. Particulars about the industry the Company engages in during the report period Photovoltaic glass industry In 2024 the photovoltaic market continued to grow as a whole. According to estimates by the China Photovoltaic Industry Association global photovoltaic installed capacity increased by approximately 530 GW representing a year- on-year growth of about 35.9%. Data released by the National Energy Administration show that China's photovoltaic installed capacity grew by 277 GW in 2024 a year-on-year growth of approximately 28.3% maintaining a leading position in the global photovoltaic market. As both demand and production capacity in overseas photovoltaic markets increased in parallel coupled with rising tariffs and trade barriers against Chinese photovoltaic products in various countries competition in the global photovoltaic market intensified.In terms of supply although global demand for photovoltaic modules continued to grow in 2024 the imbalance between supply and demand in the photovoltaic glass industry intensified leading to a downturn in end-product prices and mounting pressures for photovoltaic enterprises.Architectural glass industry The architectural glass business closely follows the national "dual carbon" strategy focusing on enhancing the energy efficiency and safety performance of buildings. Leveraging deep-processing technology for the original float glass sheet the business produces high-performance architectural glass products with features such as low emissivity high thermal insulation and impact resistance. This business segment aligns closely with the green building development trend and plays a critical role in energy conservation and consumption reduction throughout the building lifecycle.Although data show that in developed countries the application rate of energy-saving glass has exceeded 80% there remains substantial room for growth in market penetration within China.With the implementation of the Action Plan for the Establishment of Green Buildings jointly issued by the Ministry of Housing and Urban-Rural Development and other ministries it is expected that by 2025 all newly constructed urban buildings in China will fully comply with green building standards. Combined with policy documents such as the 14th Five-Year Plan for Building Energy Efficiency and Green Building Development the market for energy- saving building materials is expected to encounter structural growth opportunities. Taken into account the aforesaid policies and the latest energy efficiency requirements for public buildings in the national Action Plan for Carbon Peaking Before 2030 it is expected that the architectural glass business will gain significant development opportunities during the "14th Five-Year Plan" period. In addition with the gradual improvement of domestic social consumption level in recent years building energy conservation safety standards and quality requirements have been continuously improved. In practice the bad practice of winning the bid by the lowest price for construction projects has been initially reversed and the quality and influence of "Made in China" have been increasingly recognized around the world which will bring broader development space to advantageous enterprises that attach importance to product quality and technological innovation as well as stable industrial chain and supply chain.Float glass industry In 2024 the float glass industry faced significant pressure for deep structural adjustment. Affected by the continued downturn in the real estate market demand in the traditional building materials sector contracted significantly.According to data from SCI99. COM (Sublime China Information) by the end of 2024 the number of operational 9CSG Annual Report 2024 float glass production lines nationwide had decreased to 225 with a total daily melting capacity of approximately 158000 tons down 8.84% year-on-year indicating a shrinking trend in production capacity. Float glass traditionally finds its main application in building materials and its demand trends positively correlate with infrastructure investments and the overall prosperity of the real estate sector. In 2024 with the conclusion of the "guarantee of timely delivery of housing projects" policy cycle data from the National Bureau of Statistics show that the total housing completion area in China declined sharply by 27.7% year-on-year leading to a marked reduction in total demand for float glass. This combined with continued declines in core indicators such as real estate investment new housing construction area and sales area has altered the supply-demand dynamics of the domestic real estate market and increased uncertainty in long-term market demand. The float glass industry is undergoing structural adjustment. Based on an analysis of the market demand structure although overall demand is declining with the continued implementation of the national "dual carbon" policy and steady development in the green energy-saving and new energy sectors demand for industrial glass represented by automotive glass has increased significantly.Simultaneously as economic growth continues and living standards improve demand for high-quality products such as ultra-white float glass is expected to continue rising driven by consumption upgrades.Electronic glass and display industry According to data from IDC (International Data Corporation) global smartphone shipments reached 1.24 billion units in 2024 a year-on-year increase of 6.4% marking a recovery after two consecutive years of decline and reversing the record low set in 2023 over the past decade. IDC forecasts that the mobile phone market will continue to grow in 2025 albeit at a slower pace entering a phase of moderate recovery. In 2024 both global and Chinese automotive production and sales trended upward. According to the China Association of Automobile Manufacturers China's automobile production and sales each exceeded 31 million units in 2024 with production and sales of new energy vehicles reaching 12.888 million and 12.866 million units respectively representing year-on-year increases of 34.4% and 35.5%. New energy vehicles accounted for 40.9% of total new vehicle sales.Although downstream demand for consumer electronics and vehicle-mounted display has begun to recover industry statistics show that domestic electronic glass production capacity remained at a high level in 2024 and the issue of supply-demand imbalance showed no significant improvement. Consequently electronic glass prices continued to decline placing pressure on the industry's profitability.Solar energy industry As a strategic emerging industry in China the photovoltaic industry has over more than two decades of rapid development achieved a historic leap from technological catch-up to global leadership and completed its transformation from a supplementary energy source to a main energy source. Amid the global challenge of climate change China's photovoltaic industry is reshaping the global energy landscape through its competitive advantage across the entire value chain. Currently the industry is making an all-out effort to explore trillion-level markets and lead humanity toward a clean and low-carbon future.However the industry faced challenges in 2024 as a surge in production capacity triggered price wars that caused significant declines in product prices. In this context small and medium-sized enterprises as well as financially troubled companies faced bankruptcy risks while many cross-sector players exited the industry. On the technology front next-generation technologies such as TOPCon HJT and BC are gradually replacing PERC. Notably HJT and 0BB technologies are leading the industry trend due to their outstanding advantages in cost reduction and efficiency enhancement. In the international market although companies are accelerating global expansion and exploring emerging markets rising trade barriers in Europe and the United States have increased uncertainties in overseas markets. According to data from the National Energy Administration the solar power installed capacity nationwide increased by 27.8% year-on-year in 2024. On the policy front the government has issued documents to guide and 10CSG Annual Report 2024 regulate industry development and prevent the construction of inefficient production capacity.II. Main business of the Company during the report period CSG is a leading domestic brand of energy-saving glass and a renowned brand of solar PV products and display devices. Its products and technologies are well-known at home and abroad. Its main business includes R&D manufacturing and sales of high-quality float glass architectural glass photovoltaic glass new materials and information display products such as ultra-thin electronic glass and display devices as well as renewable energy products such as silicon materials photovoltaic cells and modules and it provides one-stop services for photovoltaic power station project development construction operation and maintenance etc. The Company owns quartz sand raw material processing and production bases in Jiangyou Sichuan; Qingyuan Guangdong; Fengyang Anhui; and Beihai Guangxi which ensure a steady supply of raw materials for the Company's glass production.Photovoltaic glass business Being one of the first Chinese manufacturers to enter the photovoltaic glass manufacturing field in 2005 the Company has accumulated nearly 20 years of experience in this sector. Based on independent research and development it has formed a full closed-loop production capacity from photovoltaic glass original sheet production to deep processing with a solid foundation in key equipment and technologies such as kiln calendaring and deep processing. Adhering to the philosophy of technological innovation driving industrial upgrading the Company is fully committed to the in-depth research and practice of photovoltaic glass calendaring technology processing technology and equipment. It has accumulated rich experience in production technology process philosophies and product cognition and has advanced technology research and development advantages. With high-quality products the Company enjoys a high status and good reputation in the industry and has become an important and even strategic cooperative supplier of global module leading enterprises.In the context of accelerating global energy transformation and China's carbon peak and carbon neutrality the Company is firmly optimistic about the long-term development of the photovoltaic new energy industry. Relying on the national "14th Five-Year Plan" and its own strategic development plan the Company focuses on ramping up production in and scaling up its photovoltaic glass business. The Company has a total of 9 photovoltaic rolled glass original sheet production kilns and supporting photovoltaic glass deep processing production lines in Dongguan Wujiang Fengyang Xianning and Guangxi covering 1.6-4mm thickness deep processing products. The Company's first kiln of photovoltaic glass and supporting processing lines in Guangxi were put into production and commercial operation during 2024 the second kiln and supporting processing lines were ignited in March 2025 and the technical upgrading project of Wujiang photovoltaic line are under construction in an orderly manner as planned. Currently the Company's daily melting capacity of photovoltaic glass is about 9000 tons which has leapt to the forefront of the industry and has become a pillar business of the Company.Architectural glass business As one of the largest high-end building energy-saving glass suppliers in China CSG integrates R&D and design technical consulting production and manufacturing and marketing and service in the architectural glass business. It always aims to "build green energy-saving products and create quality life" and forms a CSG brand image with quality service and continuous R&D as its core competitiveness which is strongly competitive in foreign markets as well. The Company has the world's leading glass deep processing equipment and testing instruments and its products cover all kinds of engineering and architectural glass. Currently the Company has seven deep processing bases of energy-saving glass in Tianjin Dongguan Xianning Wujiang Chengdu Zhaoqing and Xi'an and the layout of bases across the country is being perfected. 11CSG Annual Report 2024 CSG's architectural glass business adheres to the customized business strategy of trinity of technical service marketing R&D and manufacturing relying on its own manufacturing and R&D strength as well as the marketing and service network formed by domestic and overseas offices to meet the personalized needs of domestic and foreign customers and construction projects. The Company's R&D and application level in coating technology keep pace with the world the high-end product technology is internationally leading and the high-quality energy-saving and environmentally friendly LOW-E insulating glass continues to lead the domestic high-end market share. In 2017 CSG's low-E coated glass was awarded the title of Single Champion Product by the Ministry of Industry and Information Technology and it passed the review again in March 2024 which fully proves the leading position of CSG's architectural glass in the industry. Under the background of the "dual carbon" goal and the national green energy-saving building requirements the Company has taken the lead in independently developing many energy- saving products such as innovative and world-leading "Ice Kirin" glass series products thermal insulation products BIPV products etc. among which the "Ice Kirin" glass series products have received unanimous praise from the market for their high performance and stability relying on the Company's advanced coating technology and have become the benchmark in the domestic product market. The innovation and R&D of energy-saving products with higher energy efficiency is important to the energy conservation and emission reduction of newly constructed buildings and the energy-conservation-oriented transformation of existing buildings. In order to meet the market demand for product innovation the Company will continue to conduct innovation so as to provide quality products with higher energy efficiency for the market.The Company's quality management system for engineering and architectural glass has been approved by organizations of UK AOQC and Australia QAS. The product quality which meets the national standards of the US the UK and Australia enables CSG has an advantage in the international tendering and bidding. Since 1988 CSG's engineers and technicians have been continuously participating in the formulation and compilation of various national standards and industry standards. All kinds of high-quality engineering architectural glass provided by the Company are widely used in landmark buildings such as major city CBDs and transportation hubs at home and abroad which are too numerous to mention.In addition the Company has always adhered to the intelligent transformation and digital transformation as the key increment of the development of architectural glass business. It has continuously invested and accumulated rich experience in the research of production automation intellectualization information technology and equipment and the efficiency improvement of intelligent upgrading and transformation of traditional equipment. Through technological progress and process optimization the Company has effectively reduced production manpower consumption material consumption and energy consumption actively promoting the Company's transformation and upgrading to achieve intensive manufacturing and high-quality development.Float glass business In the field of float glass CSG has 10 advanced float glass production lines in Dongguan Chengdu Langfang Wujiang and Xianning. In 2024 two production lines (one in Chengdu Float Company and the other in Wujiang Float Company) were shut down for technical transformation with an aim to further improve production efficiency and product quality. And the transformed production line in Chengdu Float Company has been ignited in February 2025. The products that cover high-quality float glass and ultra-white float glass with various thicknesses and specifications of 1.6-25 mm are trusted by customers because of their quality. The proportion of differentiated CSG float glass products with special specifications and special application scenarios such as ultra-white ultra-thin and ultra-thick is large which are widely used in high-end building curtain walls decoration and furniture reflectors automobile windshields scanners and photocopiers transmitting plates home appliance panels display protection and other fields with high requirements on glass quality. With high-quality products and stable supply CSG has established long-term and stable business cooperation with many well-known processing enterprises. 12CSG Annual Report 2024 The profit level of the float glass business is generally positively correlated with the level of real estate data and is also affected by multiple factors such as current energy and raw material prices product structure and enterprise management level. Differentiated glass products have higher added value due to specific application scenarios higher production process difficulties steadily increasing demand and relatively proactive pricing by manufacturers. In response to market changes the Company focuses on improving management efficiency firmly implementing the differentiated competition strategy carefully cultivating and developing differentiated product markets and continuously increasing the proportion of ultra-white ultra-thick and ultra-large float glass in sales so as to continuously consolidate and enhance market competitiveness.Electronic glass and display business Upon more than a decade of development CSG Electronic Glass has always adhered to technology leadership attached importance to R&D and innovation broken through market barriers with independent intellectual property rights and independent innovation and firmly followed the development route of quality priority. After more than a decade of continuous cultivation and accumulation CSG Electronic Glass has fully covered various application scenarios and the high medium and low-end markets of these application scenarios. It actively explores new markets and developed new applications in intelligent consumer electronics terminals touch components automotive window glass vehicle displays medical equipment industrial control commercial displays smart homes and other application fields and the market share and brand effect of the Company's medium-alumina and high-alumina electronic glass products have been steadily improving. CSG has long been committed to becoming an industry-leading provider of high-end electronic glass material solutions and it will continue to develop new application materials in the fields of smart home vehicle display advanced medical new energy vehicles and smart home appliances in the future.In the touch display field CSG has formed a complete touch industry chain from vacuum magnetron sputtering coating 3A (AG AR and AF) cover plate processing and fine pattern lithography processing to touch display modules. The main business includes optical coating materials vehicle-mounted cover plates and vehicle-mounted touch panels. Among them the optical coating material segment includes the two business types of ITO conductive glass and ITO conductive film and the products are positioned at middle and high-end customers at home and abroad and are concentrated in differentiated high-value-added ones. The vehicle-mounted cover plate business segment comprises a variety of products including vehicle-mounted AG glass vehicle-mounted 2A (AR and AF) cover plates vehicle-mounted 3A cover plates and customized cover plates of special functions. These products are supplied indirectly to renowned domestic and international automotive brands through downstream customers of vehicle- mounted device manufacturers.Solar energy business As a pioneer in the field of photovoltaic product manufacturing in China CSG Group has built a complete industrial chain covering high-purity crystalline silicon silicon wafers solar cells modules and the investment and operation of photovoltaic power plants. It has three national-level and seven provincial-level scientific research and technology platforms including the "National and Local Joint Engineering Laboratory for Semiconductor Silicon Material Preparation Technology" and the "National Enterprise Technology Center". In recent years with the in-depth promotion of the "dual carbon" goals competition in the photovoltaic industry has become increasingly fierce. The subsidiaries of CSG's photovoltaic segment actively implement the strategic arrangements of the Group vigorously promoting the low-energy-consuming project of Yichang base the high-purity crystalline silicon project of Qinghai base the market expansion of differentiated products of Dongguan base and the power station project of Shenzhen base. These moves are aimed to further expand business territory and enhance market competitiveness. Facing the profound adjustment of the photovoltaic industrial chain in 2024 CSG Group has closely adhered to the core strategy 13CSG Annual Report 2024 of "reducing losses and controlling risks" and has taken a series of targeted measures to strive to navigate through adversity control losses and actively explore new development paths.III. Core Competitiveness Analysis CSG Group one of the most competitive and influential large-scale enterprises in China's glass industry and new energy industry is committed to the development of energy conservation renewable and new material industry. After more than four decades of development and accumulation the Company has gradually formed a comprehensive competitive advantage in terms of products and brands technology research and development industrial chain and layout talent team and green development. 1. Product and brand advantages "CSG" is a famous brand of domestic energy-saving glass ultra-thin electronic glass display and solar photovoltaic products. Its products and technology are well-known at home and abroad. The Company has been listed in the "Preferred Brand of Architectural Glass" in Door and Window Curtain Wall Industry and the "Top 20 Building Materials Enterprises" at the Building Materials Enterprise Development Forum for many years. The "CSG" brand was recognized by the United Nations Industrial Development Organization as the fourth batch of "International Reputation Brand" in 2018. CSG has been awarded the title of "Manufacturing Single Champion Enterprise" by the Ministry of Industry and Information Technology for its low-E coated glass and ultra-thin electronic glass. The Company was awarded the titles of "Guangdong Building Materials 20-year Meritorious Enterprise" and "Shenzhen Top 500 Enterprises for 2024" (ranking No. 81). 2. Technology research and development advantages The Company has always valued technological R&D and adopted independent R&D as its foundation since its establishment. As of 31 December 2024 the Company has had a total of 22 national high-tech enterprises 2 national- level single champion products in the manufacturing industry 1 national-level engineering laboratory 1 national- level enterprise technology centre 5 national enterprises with intellectual property advantages 1 national intellectual property demonstration enterprise 7 national-level specialized sophisticated distinctive and innovative enterprises ("Little Giants") 1 provincial-level expert workstation 1 provincial-level doctoral workstation 2 titles of provincial- level "Manufacturing Single Champion Enterprise" 14 provincial-level enterprise technology centres 5 provincial- level engineering technology research centres 2 provincial-level engineering research centres 4 provincial-level demonstration enterprises for intellectual property construction 1 provincial-level intellectual property demonstration enterprise 6 provincial-level "Little Giants" 1 provincial-level government quality award 10 provincial-level scientific and technological progress awards and 4 provincial-level patent awards. As of 31 December 2024 the Company has applied for a total of 3334 patents including 1455 invention patents 1866 utility model patents and 13 design patents. Moreover the Company has had a total of 2480 authorized patents including 601 invention patents 1866 utility model patents and 13 design patents. 3. Industrial chain and layout advantages The Company has three complete industrial chains of energy-saving glass electronic glass and display and solar photovoltaic glass. With the continuous improvement of the technological level of each process of the industrial chains the Company's industrial advantage becomes obvious; meanwhile the Company possesses a complete industry layout with production bases located in South China North China East China Southwest China Central China and Northwest China. 4. Talent team advantages The Company's advantage in talent teams is mainly reflected in two aspects: On the one hand the Company has established a strong R&D team and a powerful R&D system. Through the construction of the core technical team 14CSG Annual Report 2024 continuous R&D investment and abundant technical reserves it has constituted an important technology and innovation support for the Company's strategies. Meanwhile it has established Industry-University-Research cooperation actively cooperating with domestic colleges and universities which are in advantage in silicate materials industry to accelerate the transformation of scientific research results and to strengthen basic research; on the other hand an excellent and stable management team is one of the most fundamental guarantees for the Company's rapid and stable development. The Company has formed a good echelon training mechanism for professional managers. At present the Company's senior management team has comparative advantages in multiple aspects such as academic background professional quality knowledge base management philosophy and experience. 5. Green development advantages With the continuous impetus of the "dual carbon" goals the Company has taken active actions in various carbon- related fields. For example the Company has widely conducted professional training on carbon emission management to improve the ability of relevant personnel to better cope with carbon-related affairs. Meanwhile the Company has actively promoted through-life carbon footprint certification for relevant products as a preparation for downstream market expansion of green and low-carbon products. Furthermore Hebei CSG Glass Co. Ltd. a subsidiary of the Company and an outstanding and benchmark enterprise in the flat glass industry recognized as a pilot enterprise for carbon peaking in the construction material industry has made efforts to explore and implement the action plans and effective routes of carbon peaking in the industry. The relevant subsidiary of the Company has actively gotten involved in the regional pilot market of carbon transactions to strive for a calculation method of carbon quota matching the real situation of the Company's production. With its total emissions highly consistent with the quotas. As a pioneer of green development in the industry the Company has 11 subsidiaries being honored as national "Green Factories" winning itself abundant room for development.IV. Main business analysis 1. Overview The year 2024 saw a slow recovery in the global economy due to a combination of factors. According to the data released by the National Bureau of statistics China's national economy picked up in 2024 with the GDP exceeding RMB 130 trillion for the first time. The GDP totalled RMB 134.91 trillion increasing by 5.0% year-on-year. The investment in fixed assets (excluding farmers) totalled RMB 51.44 trillion increasing by 3.2% year-on-year. The investment in real estate development totalled RMB 10.03 trillion decreasing by 10.6% year-on-year and the floor space of buildings completed was 737 million square meters decreasing by 27.7% year-on-year.Facing the dynamic changes in the political and economic landscape at home and abroad as well as the increasing pressure of market competition CSG under the correct leadership of the Board of Directors adopts the goal of becoming a world-class enterprise and firmly takes the road of high-quality development. By continuously implementing differentiated operation constantly improving its capacity of lean production and intelligent manufacturing actively promoting project construction optimizing its industrial layout and consolidating resource reserves the Company further strengthens its core competitiveness.In 2024 the Company's revenue totalled RMB 15455 million decreasing by 15% year-on-year and its net profit reached RMB 248 million decreasing by 84 % year-on-year; meanwhile the Company's net profit attributable to shareholders of the listed company was RMB 267 million decreasing by 84% year-on-year.I. Operation of each industry of the Group In recent years CSG has continuously promoted business optimisation strengthened its competitive advantage in traditional energy-saving construction materials and accelerated the development of its new energy and new material industrial sectors. The Company's advantage in the diversified industry layout became prominent in 2024 the strong 15CSG Annual Report 2024 support of its architectural glass business float glass business and photovoltaic glass business effectively diluting the impact of cyclical fluctuations in a certain industry.In 2024 the Company's glass business (float glass photovoltaic glass and architectural glass) recorded revenue of RMB 13756 million and a net profit of RMB 857 million.Glass business segment Photovoltaic glass: In 2024 the supply-demand mismatch in the photovoltaic market was prominent. This coupled with factors such as international trade barriers and supply chain risks led to a significant decline in industrial chain prices. The industry was in a cyclical adjustment phase. In the process of deep adjustment of the market structure the Company was fully dedicated to providing high-quality and high-performance photovoltaic glass products while perfecting its industrial layout and enhancing its economies of scale. It continued to promote the lean production management to improve efficiency and unswervingly implemented the differentiated business strategy. On the one hand it relied on its own resource endowment and gave full play to the advantages of underlying technology to empower the enhancement of production efficiency and cost reduction. On the other hand precisely combining with the downstream customers' demand for product diversification it matched the characteristics of different battery technologies to develop and promote differentiated products. By putting various important management initiatives in place the Company's photovoltaic glass business achieved relatively sound operation in the volatile market condition and gradually formed a core competitiveness of sustainable development.Architectural glass: As a leading brand in China's architectural glass industry CSG adheres to the development philosophy of "Technology-driven Growth Intelligent Manufacturing Empowerment" deeply integrates new quality productivity and industrial upgrading builds an innovation system covering the entire chain of "R&D-intelligent manufacturing-service" and forms quality service and continuous R&D capabilities that match the brand. Focusing on the continuous improvement of the building energy-saving standards and high-rise building safety standards the Company strengthens brand building and adheres to the customized business strategy integrating technical service marketing and R&D and manufacturing to meet the personalized needs of domestic and foreign customers and construction projects. As the Company's share in the domestic high-end construction market continues to rise it also maintains a leading position in market scale and profitability in the field of deep processing within the same industry.In the context of intensified economic cycle fluctuations in 2024 the Company built a new paradigm of smart factories based on the industrial Internet platform and achieved dynamic optimization of production lines through digital twin technology so as to shorten the delivery cycle of customized products and improve the yield rate. In the green and low-carbon field the Company applied building integrated PV (BIPV) glass technology to develop power generation glass products that can realize power-generating buildings. Related solutions have been applied to the construction of the Zero-carbon Demonstration Park of the Guangdong-Hong Kong-Macao Greater Bay Area.Additionally by refining the market layout the Company continued to increase the signing of high-quality projects which resulted in the drastic year-on-year increase of the order compounding degree. Furthermore it strongly advanced the business of customized products to explore new business growing points and continued to increase the proportion of sales of differentiated products to further enhance the overall product profitability. With the adoption of this series of initiatives the Company's architectural glass business achieved a steady operation in the current competitive market environment while the development of product diversification further enhanced the market competitiveness and service capabilities of architectural glass.Float glass: In the context of multi-dimensional reshaping of the business landscape in 2024 the Company firmly implemented the differentiated product strategy. On the one hand it focused on the domestic high-end ultra-white glass market focused on building "Blue Diamond" a high-end brand of ultra-white glass series and continuously increased the market share to become the leader in the industry segment. On the other hand it optimized its product structure strengthened market development for high value-added products such as industrial glass and automotive 16CSG Annual Report 2024 glass and constantly produced and marketed more differentiated products such as large-size and ultra-thick products and high-grade products. These measures have effectively mitigated the impact of the downward trend in the architectural glass market and enhanced profitability of the Company.At the same time the Company continued to reduce costs and increase efficiency internally effectively reducing the procurement cost by coordinating the centralized procurement of bulk raw materials. The production efficiency was improved and production costs were further reduced by strengthening the lean management of full production process.Although the cold repair and technical transformation of Chengdu Float Glass Line 3 and Wujiang Float Glass Line 2 had a certain impact on the Company's float glass production capacity and profitability in 2024 the Company still maintained the stable operation of the float glass business as a whole through a series of effective measures.Electronic glass and display business segment Against the backdrop of the profound evolution of the supply and demand structure on the market the Company's electronic glass business continued to strengthen R&D innovation in internal management and deepened the strategy of cost reduction and efficiency enhancement. For marketing the Company continued to actively explore new markets and develop new applications in intelligent electronic terminals touch control modules vehicle-mounted displays medical equipment industrial automatic control displays & commercial displays smart home and other fields. Although the selling prices on the electronic glass market fluctuated and declined in 2024 the Company's overall market share of medium-alumina and high-alumina electronic glass products remained stable.For display devices in 2024 the Company deeply ploughed its traditional dominant segment of optical coating material business developing new products and new application scenarios. Sampling has been successfully completed and mass production has started in some projects representing preliminary results. On the other hand it continued to develop its vehicle-mounted cover plate business the new production capacity project of vehicle- mounted AG glass and vehicle-mounted multifunctional cover plates achieved mass production and the sale volume increased substantially compared with the same period last year. For the vehicle-mounted touch panel segment the Company's production and sales volumes declined compared with the same period last year due to the shrinking global demand for consumer electronics and the popularity of in-cell touch technology.Solar energy business segment In 2024 China's photovoltaic industry exhibited characteristics of deep structural adjustment in supply and demand.According to data released by the National Energy Administration China's photovoltaic installed capacity increased by over 27.8% year-on-year while photovoltaic module exports grew by 13% year-on-year. Despite the sustained two-way growth in the end market the prices of key products across the industry chain declined sharply year-on-year forcing the industry to accelerate into a capacity optimization cycle. The current stage of industrial development is marked by three significant trends: first the accelerated elimination of outdated production capacity; second the rapid pace of technological iteration with a notable increase in the market share of N-type products; and third intensifying cost competition with the entire industry chain facing a negative profit dilemma. In the face of this market environment the Company's solar energy business segment was significantly affected in 2024. The Company responded proactively by conducting in-depth analysis of market trends and industry developments promptly adjusting its operating strategies flexibly regulating production capacity enhancing product quality through process innovation and implementing refined management to maximize equipment potential. It also comprehensively launched cost-reduction and efficiency-enhancement initiatives which effectively mitigated part of the pressure brought by the market.II. Other management work 17CSG Annual Report 2024 In 2024 by fully implementing the market policy of "expanding the market adjusting the structure and controlling risks" and the cost control policy of "stabilizing production improving quality and controlling costs" the Company opened up a new path in the uncertain environment vigorously promoted the Group's development strategies ensured the steady implementation of all operation and management tasks and promoted operational efficiency through management improvement. In order to ensure the rapid and healthy development of all its industrial sectors the Company spared no effort to ensure production safety continued to promote differentiated operations and the capability of intelligent production and deepened market development. The multiple measures it took were listed below. 1. The Company enhanced efforts to improve management-based benefit creation as the Company's integral system under the dual cycle of "Internal Improvement and External Expansion" with solid foundations could effectively support its operation. Furthermore the Company continuously conducted cost management in multiple aspects such as cost reduction and efficiency enhancement centralized procurement strategic procurement and engineering construction plan optimization enhanced the coordination and co-development of its teams improved efficiency in service regulation and decision-making promoted the Group's information management and construction of digital and intelligent factories gave play to the leading role of information innovation in the improvement of the capabilities of management and operation continued to promote management based on the optimized basic standards and promoted the construction of the five-star green factories. Moreover the Company made efforts to improve the performance in safety management. It redoubled the efforts of hidden danger investigation and rectification increased safety and environmental protection training and education and strengthened the safety foundation for continuous safe operation. Through the implementation of a series of programs methods and means for internal control the Company facilitated the achievement of the Company's operation objectives and the response to and remediation of risk incidents in the business processes. Guided by risk control and efficiency/effect improvement and focusing on the Group's strategies of the operation objectives of the current period the Company promoted the improvement of its management mechanisms and comprehensively improved its capabilities of risk control and business management. 2. The ability to conduct R&D and iteration of technologies techniques and products is always the key guarantee for the sustainable and healthy development of an enterprise. As the core element of CSG for forming the industrial barrier of high-value-added business lines the ability helps the Company maintain its industry-leading position. The Company has made its comprehensive layout from six perspectives namely the organizational structure of its R&D system intellectual property rights top-level product design high-level R&D platforms senior talent echelons and the demand for the supporting talent resources. Based on the layout the Company has formulated the Group's R&D strategic plan to guide the Company's technological innovation and its sustainable development of product R&D. The Company has also promoted the construction of the R&D system and strengthened R&D and innovation as it has facilitated the industrialization of its new products and the cross-industry application of its products. For example it has applied its high-alumina electronic glass to automobiles. 3. Energy conservation and environmental protection are the lifeline to the survival and development of a glass company and the core features of the social responsibilities of an enterprise in an industry with high energy consumption. The Company has always been at the leading level in the industry in terms of the control of energy consumption and emissions. CSG takes the lead in the industry to realize comprehensive utilization of energy by means of waste heat power generation and distributed photovoltaic power generation. Through comprehensive exhaust gas treatment such as desulfurization denitrification and dust removal it achieves ultra-low emission which is far lower than the national pollutant emission permission value. Under the condition of the same tonnage and the same kiln age the control of energy consumption and the control of emission per unit of production capacity have always been at the leading level in the industry. 11 subsidiaries of CSG including Wujiang CSG Glass Co. Ltd. 18CSG Annual Report 2024 Tianjin CSG Energy-Saving Glass Co. Ltd. Xianning CSG Energy-Saving Glass Co. Ltd. Xianning CSG Photoelectric Glass Co. Ltd. Xianning CSG Glass Co. Ltd. Yichang CSG Photoelectric Glass Co. Ltd. Yichang CSG Polysilicon Co. Ltd. Hebei Panel Glass Co. Ltd. Hebei CSG Glass Co. Ltd. Yichang CSG Display Co. Ltd.and Sichuan CSG Energy-Saving Glass Co. Ltd. were successfully included in the list of “Green Factory” announced by the Ministry of Industry and Information Technology. 4. The Company further improved its organisational structure to safeguard the implementation of its strategic projects. Specifically the Company vigorously promoted organisational talent development optimized the organisational structure and the corresponding staffing and improved the construction of the human resource system. Moreover the Company optimized and adjusted the functional organization of the headquarters and business divisions to enhance business support as it specified the functions posts and staffing of the three-level structure of the Group's R&D management and continuously promoted the implementation of organizational optimization of R&D at each level. In doing so the Company encouraged all subsidiaries of the Group to establish their own R&D department in a gradual manner so as to further improve the R&D system of the Group. 5. The Company steadily promoted branding according to applicable rules to ensure the consistency and reputation of CSG's brand image and safeguard the development of CSG. It promoted the shooting and production of the high- quality CCTV advertisement for the CSG brand and continuously strengthened the brand presence. It deepened the implementation of the Group's branding management mechanism established a supervision mechanism and management standards based on the branding management measures guided the Group's media relationship maintenance self-media operation and internal publicity management with the aforesaid management measures and further improved the branding management system. 2. Revenue and cost (1) Constitution of operation revenue Unit: RMB 20242023 Ratio in Ratio in Increase/decr Amount operation Amount operation ease y-o-y revenue revenue Total of operating income 15455386401 100% 18194864366 100% -15.06% According to industry Glass industry 13755566623 89% 14685557284 80.71% -6.33% Electronic glass & Display 14079685119.11%15726422368.64%-10.47% industry Solar energy and other 5921992403.83%224832165212.36%-73.66% industries Undistributed 339265375 2.20% 400173854 2.20% -15.22% Inter-segment offsets -639613348 -4.14% -711830660 -3.91% -10.15% According to product Glass products 13755566623 89% 14685557284 80.71% -6.33% Electronic glass & Display 14079685119.11%15726422368.64%-10.47% products Solar energy and other 5921992403.83%224832165212.36%-73.66% products Undistributed 339265375 2.20% 400173854 2.20% -15.22% Inter-segment offsets -639613348 -4.14% -711830660 -3.91% -10.15% According to region 19CSG Annual Report 2024 Mainland China 14255356141 92.24% 16639820052 91.45% -14.33% Overseas 1200030260 7.76% 1555044314 8.55% -22.83% According to sales model Direct sales 15455386401 100% 18194864366 100% -15.06% (2) List of the industries products regions or sales model exceed 10% of the operating income or operating profits of the Company √ Applicable □ Not applicable Unit: RMB Increase/d Increase/d Increase/de ecrease of ecrease of Gross crease of Operating revenue Operating cost operating gross profit ratio operating revenue y- profit ratio cost y-o-y o-y y-o-y According to industry Glass industry 13755566623 11349404254 17.49% -6.33% -1.13% -4.34% Electronic glass & Display 1407968511119486065515.14%-10.47%-9.12%-1.26% industry Solar energy and other 592199240609449353-2.91%-73.66%-63.51%-28.62% industries According to product Glass products 13755566623 11349404254 17.49% -6.33% -1.13% -4.34% Electronic glass & Display 1407968511119486065515.14%-10.47%-9.12%-1.26% products Solar energy and other 592199240609449353-2.91%-73.66%-63.51%-28.62% products According to region Mainland China 14255356141 11855024119 16.84% -14.33% -8.06% -5.67% According to sales model Direct sales 15455386401 12848639959 16.87% -15.06% -9.20% -5.36% Under the circumstances that the statistical standards for the Company's main business data adjusted in the report period the Company's main business data in the recent year is calculated based on adjusted statistical standards at the end of the report period □ Applicable √ Not applicable (3) Whether the Company's goods selling revenue higher than the service revenue √ Yes □ No Increase/decrease Industry Item Unit 2024 2023 y-o-y (%) Sales volume 10000-ton 215 231 -6.93% Float glass Output 10000-ton 221 224 -1.34% Inventory 10000-ton 12 7 71.43% Sales volume 10000-M2 43864 34877 25.77% Photovoltaic glass Output 10000-M2 45215 35601 27% Inventory 10000-M2 3545 2194 61.58% Insulating glass Sales volume 10000-M2 1441 1376 4.72% 20CSG Annual Report 2024 Output 10000-M2 1446 1356 6.64% Inventory 10000-M2 36 31 16.13% Sales volume 10000-M2 3091 2755 12.20% Coated glass Output 10000-M2 3089 2955 4.53% Inventory 10000-M2 157 160 -1.88% Sales volume ton 297167 301514 -1.44% Electronic glass Output ton 304161 297593 2.21% Inventory ton 29151 22465 29.76% Sales volume ton - 4840 -100% High-purity Output ton - 4946 -100% crystalline silicon Inventory ton 74 153 -51.63% Sales volume 10000-piece 14192 18843 -24.68% Silicon wafer Output 10000-piece 13446 19318 -30.40% Inventory 10000-piece 128 875 -85.37% Reasons for major changes (over 30% year-on-year) in relevant data √ Applicable □ Not applicable 1. Float glass: The increase in the inventory of float glass was mainly because the quantity of production was greater than that of sales during the year. 2. Photovoltaic glass: The increases in the production volume sales volume and inventory of photovoltaic glass were mainly due to the establishment of new production lines in some subsidiaries. 3. Electronic glass: The increase in the inventory of electronic glass was mainly because the quantity of production was greater than that of sales during the year. 4. High-purity crystalline silicon: The decreases in the production volume sales volume and inventory were mainly because no high-purity crystalline silicon was produced during the year. 5. Silicon wafer: The decreases in the production volume sales volume and inventory were mainly due to a weaker market during the year. (4) Fulfilment of significant sales contracts and procurement contracts signed by the Company up to the report period √ Applicable □ Not applicable Fulfilment of significant sales contracts signed by the Company up to the report period √ Applicable □ Not applicable Unit: RMB 0000 The Amount Descriptio amount n of the of sales The Total Total performed Amount to Normally revenue cumulative Receivables Subject matter Name of the other party contract amount during the be performe contract amount of amount fulfilled report performed d or not not being recogniz ed sales collection status period performednormally during revenue the recognized period LONGi Solar Technology Ltd.Zhejiang LONGi Solar Photovoltaic glass Technology Ltd. Taizhou LONGi 650000 126426 12807 523574 Yes Not 11755 114016 Normal Solar Technology Ltd. Yinchuan applicable refund LONGi Solar Technology Ltd. 21CSG Annual Report 2024 Chuzhou LONGi Solar Technology Ltd. Datong LONGi Solar Technology Ltd. LONGi (H.K.) Trading Limited LONGi (KUCHING) SDN. BHD.Xianyang LONGi Solar Technology Ltd. Jiangsu LONGi Solar Technology Ltd. Jiaxing LONGi Solar Technology Ltd.Xi'an LONGi Green Building Technology Ltd.The advance High-purity silicon materials Trina Solar Co. Ltd. 2121000 31964 2089036 Yes Not applicable 28287 payment has been recovered.The Solar-grade raw advance polycrystalline Customer 1 and Customer 2 999900 30832 969068 Yes Not silicon materials applicable 27285 payment has been recovered.Solar-grade raw polycrystalline Customer 1970000 1970000 Yes Not silicon materials applicable Note: The above material contracts are long-term sales contracts signed between the Company and customers. A total supply volume is given in such a contract the specific price is negotiated on a monthly basis and the total contract amount is subject to the final transaction amount.Fulfilment of significant procurement contracts signed by the Company up to the report period □ Applicable □Not applicable (5) Constitution of operation cost Industry and product classification Unit: RMB 20242023 Increase/ Industry Item Ratio inRatio in decrease Amount Amount operating operating costs y-o-y costs Materials Labor Glass industry 11349404254 88.33% 11479221030 81.13% -1.13% wages Depreciation Electronic glass & Display Materials Labor 11948606559.30%13148026039.29%-9.12% industry wages Depreciation Solar energy and other Materials Labor 6094493534.74%167039038711.80%-63.51% industries wages Depreciation Unit: RMB 20242023 Increase/ Product Item Ratio in Ratio in decrease Amount operating Amount operating y-o-y costs costs Materials Labor Glass products 11349404254 88.33% 11479221030 81.13% -1.13% wages Depreciation Electronic glass & Display Materials Labor 11948606559.30%13148026039.29%-9.12% products wages Depreciation Solar energy and other Materials Labor 6094493534.74%167039038711.80%-63.51% products wages Depreciation 22CSG Annual Report 2024 Note: The main components of operating costs include materials labor wages depreciation etc. In order to avoid the disclosure of business secrets and damage the interests of the listed company and investors the operating costs are only separated and disclosed according to the business sector and product classification of the Company. (6) Whether the consolidated scope has changed during the report period √ Yes □ No See note 9 Changes in the scope of consolidation in the financial report of Section 10 for other reasons. (7) Major changes or adjustment in business product or service of the Company in the report period □ Applicable √ Not applicable (8) Major customers and major suppliers Major customers of the Company Total sales to the top five customers (RMB) 2517097877 Proportion in total annual sales volume for top five customers 16.28% Proportion of related party sales in total annual sales volume for top five customers 0% Information of the top five customers of the Company Serial Name of customer Sales volume (RMB) Proportion in total annual sales 1 Customer A 1097345139 7.10% 2 Customer B 404134025 2.61% 3 Customer C 400436341 2.59% 4 Customer D 319741749 2.07% 5 Customer E 295440623 1.91% Total -- 2517097877 16.28% Other statement of main customers □ Applicable √ Not applicable Major suppliers of the Company Total purchase amount from the top five suppliers (RMB) 3260192086 Proportion in total annual purchase amount from the top five suppliers 24.89% Proportion of related party sales in total purchase amount from the top five suppliers 0% Information of the top five suppliers of the Company Serial Name of supplier Purchase amount (RMB) Proportion in total annual purchase 1 Supplier A 1134105597 8.66% 2 Supplier B 710249090 5.42% 3 Supplier C 565009403 4.31% 4 Supplier D 547450130 4.18% 5 Supplier E 303377866 2.32% Total -- 3260192086 24.89% Other statement of major suppliers □ Applicable √ Not applicable 23CSG Annual Report 2024 3. Expenses Unit: RMB 2024 2023 Increase/decrease y-o-y Note of major changes Sales expense 289402862 308908806 -6.31% Management expense 791021833 865371137 -8.59% Financial expense 183964983 158826105 15.83% R&D expenses 611497261 739301765 -17.29% 4. R&D expenses √ Applicable □ Not applicable Name of the Expected impact on the major R&D Purpose Progress Target Company's future project development As a brand-new differentiated product it To develop a glass Integrate enriches the Company's R&D of glass product capable of The R&D of glass capable electromagnetic wave product types better capable of shielding and absorbing of shielding and absorbing absorption meets diverse market shielding and electromagnetic electromagnetic radiation functionality for demands enhances the absorbing radiation with product has been completed and its specific frequency Company's market electromagneti quality meeting relevant mass production has been bands into traditional competitiveness and fills c radiation quality standards and achieved. architectural safety the technological gap in customer requirements. glass. the industry for specific frequency bands into traditional.Identify key factors linking BIPV glass' To design a complete The project has completed power generationperformance and It promotes the Research on BIPV glass performance performance testing fortesting system to test and BIPV glass with various energy-saving application of BIPV performance performance in real products enables testing of BIPV analyze the power structures and analyzed theirgeneration and thermal power generation application participation in BIPV glass products insulation performance performance and their environments and project design and establish a improves productof BIPV glass. impact on energy efficiency. comparative database competitiveness.against theoretical calculations.The Company's float glass products are well recognized in the industry with in-depth cooperation with high- end processors and with the conditions to promote R&D of zero- To develop zero-defect The project has produced the development of defect customized float glass zero-defect customized float Meet the demand of the high-end market higher-end products. The customized products and further glass products and achieved with zero-defect project advances product float glass expand into the high-end expected targets with stable customized float differentiation and products market. production and continuous precision expands high-mass production capability. glass. end market share and profit margin and showcases the superior quality of CSG's products enhances CSG's product image and improves its market competitiveness.Development The special technical The project has been Achieve kiln lifespans A breakthrough in 24CSG Annual Report 2024 of extended development to extend successfully completed with exceeding 14 years lifespan extension kiln lifespan kiln lifespan in large- the lifespan of the float glass for large-tonnage technology for large- for large- tonnage kilns aims to kiln extended. lines setting a new tonnage kilns is made.tonnage lines overcome existing industry benchmark The project results not technical bottlenecks in the development of only enhance the ensure the stable and large-tonnage kiln Company's economic safe operation of large- operation technology. benefits but also offer a tonnage kilns during the forward-looking plan and longer lifespan reduce practical experience for energy costs and the kiln technological enhance the Company's innovation in the glass core competitiveness in production industry glass production. supporting the Company's sustainable development in glass production and promoting the technological progress of the entire industry.To develop BIPV Meet customization Development modules in various The project has produced and diversification Achieve differentiation of crystalline specifications produce sample BIPV modules with needs in the BIPV and customization of the silicon BIPV rectangular tile modules varying thicknesses and module market and Company's BIPV rectangular tile with different colors colors achieved mass achieve seamless products and enhance the modules and enhance the production and passed integration of PV Company's marketCompany's BIPV reliability testing. products with competitiveness.product competitiveness. building rooftops.To develop a new coated Development glass that improves Develop a nano-silica and application tempering difficulty hollow structured Improve the production research of reduces volatile matter Development has been process level reduce hollow silica precipitation in the completed and mass coated glass that production is currently in reduces volatile production costs enrich anti-reflection tempering kiln progress. precipitation during product structure and (AR) coated minimizes kiln cleaning tempering and lowers enhance market glass frequency and lowers production costs. competitiveness.VOC emissions.Development Enhance light Improve product of moisture- To develop a dual-layer resistant and coated glass resistant to Development has been transmittance performance strengthen water stains and completed and mass improve resistance to the Group's technologicaleasy-to-clean moisture and easy to production is currently in dirt and humidity and leadership in photovoltaicdual-layer clean without scratches. progress. increase product coated glass and form acoated glass competitiveness. core competitive edge.Formula development has Formula been completed. Product Open up a new application track for high- development To develop proprietary performance can be Achieve end glass-ceramic panels for low- formulas for low- benchmarked against expansion expansion transparent mainstream international industrialization of in home appliances transparent glass-ceramic panels for competitors. The project has proprietary glass- expand the application of passed multi-round lab and ceramic glass for glass-ceramic productsglass-ceramic use in home appliances. client validation and home appliances. and support the upgradingpanels established a mass of the domestic glass- production feasibility plan. ceramic industry.To enhance the optical Meet the automotive- Improve the quality of Improvement uniformity of high- The project has improved grade market cover high-alumina products of optical alumina glass and the optical uniformity of plates and the optical reduce production costs uniformity in develop products that products with successful uniformity of glass of automotive-grade automotive- meet the application of application in the mass and provide glass expand application grade high- vehicle-mounted cover production project of an lightweight high- scenarios of high-alumina alumina glass plates and side window automotive glass strength automotive glass and enhance theglass. manufacturer. glass products for the Company's product market. competitiveness.Development To provide LOW DOI The project has successfully of vehicle- AG glass products with developed LOW DOI AG Develop LOW DOI Enrich CSG's AG product mounted LD diverse substrate options glass products and been AG glass products series and enhance CSG's AG glass for different customers certified by customers. Mass with diversified competitiveness in the products and expand CSG's AG production and delivery has substrate options. AG glass market.product series. been achieved. 25CSG Annual Report 2024 R&D staff of the Company 2024 2023 Ratio of change Number of R&D staff (person) 1744 1879 -7.18% The proportion of the number of R&D staff 11.46% 12.82% -1.36% Educational structure of R&D staff Undergraduate 965 959 0.63% Master 58 54 7.41% Doctor 3 3 0% Below undergraduate 718 863 -16.80% Age composition of R&D staff Under 30years old 392 436 -10.09% 30~40years old 853 949 -10.12% Over 40years old 499 494 1.01% R&D investment of the Company 2024 2023 Ratio of change Amount of R&D investment (RMB) 611497261 754224256 -18.92% Ratio of the R&D investment to the operating income 3.96% 4.15% -0.19% Amount of the capitalized R&D investment (RMB) 0 14922491 -100% Ratio of the capitalized R&D investment to the R&D investment 0% 1.98% -1.98% Reasons and effects of major changes in the composition of the company's R&D staff □ Applicable √ Not applicable Reason of remarkable changes over the previous year of the ratio of the total R&D investment amount to the operating income □ Applicable √ Not applicable Reason of substantial change of the ratio of the R&D investment capitalization and its reasonable explanation √ Applicable □Not applicable Part of the research and development projects have been completed. 5. Cash flow Unit: RMB Item 2024 2023 Increase/decrease y-o-y Subtotal of cash inflow from operating activities 17091986231 18181609496 -5.99% Subtotal of cash outflow from operating activities 15335062582 15421820602 -0.56% Net cash flow from operating activities (1) 1756923649 2759788894 -36.34% Subtotal of cash inflow from investment activities 656732339 54903880 1096.15% Subtotal of cash outflow from investment activities 2940324884 4308138530 -31.75% Net cash flow from investment activity (2) -2283592545 -4253234650 -46.31% Subtotal of cash inflow from financing activity 3917109582 3902491900 0.37% Subtotal of cash outflow from financing activity 3082697508 3958565009 -22.13% Net cash flow from financing activity (3) 834412074 -56073109 - Net increased amount of cash and cash equivalent (4) 316611731 -1542756596 - 26CSG Annual Report 2024 Statement on the main factors in the major changes of year on year relevant data √ Applicable □ Not applicable (1) It was mainly due to the decrease in cash received from sales of goods or rendering of services. (2) It was mainly due to the decrease in cash paid to acquire fixed assets intangible assets and other long-term assets. (3) It was mainly due to the decrease in cash repayments of borrowings. (4) It was mainly due to the change in net cash flow from investing activity. Statement of the reasons for significant differences between the net cash flow from operating activities and the net profit of the year during the report period □ Applicable √ Not applicable V. Non-main business analysis √ Applicable □ Not applicable Unit: RMB Whether Percentage to Amount Explanation of the reason sustainable total profits or not Mainly interest on discounted notes debt Income from -1604000 -0.55% restructuring income from financial No investment management etc.Fair value change Mainly fair value changes in investment -491578 -0.17% No gains and losses properties Impairment of assets -581082224 -199.75% Mainly impairment of long-term assets etc. No Non-operating 19908997 6.84% Mainly payments that cannot be made etc. No income Non-operating Mainly loss on the disposal of non-current 26948172 9.26% No expenditure assets etc.VI. Asset and liability analysis 1. Significant changes in asset composition Unit: RMB End of 2024 Beginning of 2024 Increase or Percentage Percentage decrease Explanation of significant Amount to total Amount to total in changes assets assets proporti on Cash at bank and 342152748210.96%307677421810.13%0.83% on hand Accounts 16866276815.40%18817964086.20%-0.80% receivable Inventories 1587828028 5.09% 1590224795 5.24% -0.15% Investment 2937124530.94%2903681050.96%-0.02% properties 27CSG Annual Report 2024 Fixed assets 13166391449 42.17% 13145568631 43.30% -1.13% Construction in 535037513217.14%432501642014.24%2.90% progress Right-of-use Mainly due to the increase in 648048370.21%216376280.07%0.14% assets leases of some subsidiaries Mainly due to the increase in Short-term 1163021299 3.73% 436853583 1.44% 2.29% borrowings of some borrowings subsidiaries Contract liabilities 354215784 1.13% 362538795 1.19% -0.06% Long-term 615160847219.70%622164867620.49%-0.79% borrowings Mainly due to the increase in Lease liabilities 21650607 0.07% 15134562 0.05% 0.02% leases of some subsidiaries Trading financial Mainly due to the purchase of 960000000.31%0.31% assets structured deposits Mainly due to the increase in Receivables 798603111 2.56% 529945623 1.75% 0.81% notes receivable from financing customers Non-current assets Mainly due to the maturity of due within one 84191224 0.28% -0.28% previously purchased large- year amount certificate of deposit Other current Mainly due to the increase in 4756170561.52%3520666981.16%0.36% assets overpaid value added tax etc.Deferred tax Mainly due to the decrease in 3099950660.99%2230250310.73%0.26% assets net profit of some subsidiaries Mainly due to the purchase of Long-term prepaid 71254985 0.23% 18764429 0.06% 0.17% land increase and decrease expenses linked indicators Mainly due to the decrease in Other non-current 99328456 0.32% 396600354 1.31% -0.99% prepayment for engineering assets and equipment Mainly due to the decrease in Taxes payable 73688362 0.24% 123407413 0.41% -0.17% value added tax and corporate income tax that were payable Mainly due to the refund of Other payables 312816531 1% 484741877 1.60% -0.60% security deposits Non-current Mainly due to the increase in liabilities due 2168856957 6.95% 1248891979 4.11% 2.84% long-term borrowings due within one year within one year Mainly due to the Other current 218529333 0.70% 454332686 1.50% -0.80% reclassification of supply chain liabilities financial notes to notes payable Mainly due to the increase in Long-term 464617473 1.49% 88204163 0.29% 1.20% finance leases of some payables subsidiaries Mainly due to the income tax Deferred tax 104170857 0.33% 80087910 0.26% 0.07% rate changes of some liabilities subsidiaries Mainly due to the provision of Special reserve 5079628 0.02% 1411139 0% 0.02% special reserve The proportion of overseas assets was relatively high.□Applicable √ Not applicable 28CSG Annual Report 2024 2. Assets and liabilities measured at fair value √ Applicable □ Not applicable Unit: RMB Profit and loss from Cumulative Impairment changes in changes in Purchase Opening accrued in Amount sold Other Closing Item fair value fair value amount for balance the current in this period changes balance in the included in this period period current equity period financial assets 1. Trading financial assets (excluding 38600000029000000096000000 derivative financial assets) Total financial 38600000029000000096000000 assets Investment 290368105-4915783835926293712453 properties Receivables 529945623268657488798603111 financing Total of the above 820313728 -491578 386000000 290000000 272493414 1188315564 Other changes: 1. Other changes in receivables financing are caused by changes in high credit rating bills collected or endorsed; 2. Other changes in investment real estate are caused by the change of using the houses obtained through industrial compensation for rental purposes in this year.During the report period whether the company's main asset measurement attributes changed significantly or not □Yes √No 3. Limited asset rights as of the end of the report period Unit: RMB Item Limited amount Limited reason Monetary funds 53654096 Restricted circulation of deposits freezes etc Note receivable 871417785 Restricted pledge Fix assets 96468240 Limited finance lease Construction in progress 618442257 Limited finance lease Total 1639982378 VII. Investment 1. Overall situation √ Applicable □ Not applicable Investment in the report period (RMB) Investment in the same period of the previous year ( RMB) Changes 29403248844308138530-31.75% 29CSG Annual Report 2024 2. The major equity investment obtained in the report period □ Applicable √ Not applicable 30CSG Annual Report 2024 3. The major ongoing non-equity investment in the report period √ Applicable □ Not applicable Unit: RMB Fixed Accumulative Reasons for not Way of Accumulativeasset Amount invested amount actually achieving the Date of Index of Project name investm Industry Progress of Expected revenue achieved investm during the report invested by the Source of funds planned progress disclosure (if disclosure (if ent involved project revenue by the end of theent or period end of the report and the expected applicable) applicable) report period not period revenue Own funds and Zhaoqing CSG High- Manufact No revenue as the Announceme Self- loans from 13 December grade Automotive Glass Yes uring 147601326 Under built financial construction project is still in the nt number: 2019 Production Line Project industry construction period. 2019-077 institutions Wujiang CSG Part of the project Architectural New Own funds and Manufact has been completed Announceme Architectural Glass Self- loans from Yes uring 87536510 Partially put into and the revenue 24 June 2020 nt number: Intelligent Manufacturing built financial operation industry thereof has been 2020-051 Plant Construction institutions reflected in profits.Project Part of the project Own funds and Xi'an CSG Energy-saving Manufact has been completed Announceme Self- loans from Partially put into 7 NovemberGlass Production Line Yes uring 25398516 247982509 operation and the revenue nt number:built financial 2020 Project industry thereof has been 2020-070 institutions reflected in profits.Own funds and Manufact No revenue as the Announceme CSG East China Self- loans from Under 27 AugustYes uring 26349053 33990042 Headquarters Building built financial construction project is still in the nt number: 2021 industry construction period. 2021-039 institutions Part of the project CSG Guangxi Beihai Own funds and Manufact has been completed Announceme Photovoltaic Green Self- loans from Yes uring 773310910 1511671756 Partially put into 10 September and the revenue nt number: Energy Industrial Park built financial operation 2021 industry thereof has been 2021-041 Project (Phase I) institutions reflected in profits.Hefei CSG Energy- Manufact Own funds and No revenue as the Announceme Self- 15 October saving Glass Intelligent Yes uring 3204661loans from Preparatory project is still in the nt number: built stage 2021 Manufacturing Industry industry financial preparatory period. 2021-043 31CSG Annual Report 2024 Base Project institutions Xianning CSG Energy- Part of the project saving Glass Co. Ltd. Own funds and Manufact has been completed Announceme Production Line Self- loans from 3 December Yes uring 15296329 61320939 Partially put into and the revenue nt number: Reconstruction and built financial operation 2021 industry thereof has been 2021-051 Expansion Construction institutions reflected in profits.Project Phase I Upgrading and Own funds and Technical Transformation Manufact No revenue as the Announceme Self- loans from 25 December Project of Qingyuan CSG Yes uring 5081858 31773428 Underconstruction project is still in the nt number:built financial 2021 Energy-Saving New industry construction period. 2021-053 institutions Materials Co. Ltd.High-purity crystalline Own funds and silicon project with an Manufact No revenue as the Announceme Self- loans from annual output of 50000 Yes uring 1035856386 3682630534 Underconstruction project is still in the 23 June 2022 nt number:built financial tons in Haixi Prefecture industry construction period. 2022-024 institutions Qinghai Province The project has Anhui Fengyang 37.6 Own funds and Manufact been completed Announceme MW Distributed Self- loans from 9 November Yes uring 6150317 89504749 Already put into and the revenue nt number: Photovoltaic Power built financial operation 2022 industry thereof has been 2022-061 Generation Project institutions reflected in profits.Total -- -- -- 1887443369 5897216454 -- -- -- -- -- -- -- 32CSGAnnual Report 2024 4. Financial assets investment (1) Securities investment □ Applicable √ Not applicable There was no securities investment during the report period. (2) Derivative investment □ Applicable √ Not applicable There was no derivative investment during the report period. 5. Use of raised fund □ Applicable √ Not applicable There was no use of raised fund during the report period.VIII. Sales of major assets and equity 1. Sales of major assets □ Applicable √ Not applicable The Company did not sell major assets during the report period. 2. Sales of major equity □ Applicable √ Not applicable IX. Analysis of main holding companies and joint -stock companies √ Applicable □ Not applicable Particular about main subsidiaries and joint -stock companies which have influence on the Company's net profit by over 10% Unit: RMB Name of Registered Operating Operating Type Main business Total assets Net Assets Net profit company capital revenue profit Production Yichang CSG and sales of Silicon high-purity 1467.98 Subsidiary 1585068499 1009295317 173717928 -428387643 -378581451 Materials Co. silicon million Ltd. material products Production Dongguan CSG and sales of PV-tech Co. Subsidiary high-tech 516 million 608291244 58536013 312064801 -122862046 -140630725 Ltd. green battery products and 33CSGAnnual Report 2024 components Anhui CSG New Production Energy Material Subsidiary and sales of 1750 million 5602101173 2352770169 3829204857 231576044 214001475 Technology Co.solar glass Ltd.Production and sales of Xianning CSG Subsidiary special glass 235 million 2300872694 953359689 1764409820 88527358 84808756 Glass Co. Ltd.and solar glass Production Dongguan CSG and sales of Solar Glass Co. Subsidiary special glass 480 million 1630418185 1074532570 1118569171 34520931 35612657 Ltd. and solar glass Guangxi CSG New Energy Production Material Subsidiary and sales of 800 million 2120882303 689370090 364995094 -49608312 -39918728 Technology Co. solar glass Ltd.Production Chengdu CSG and sales of Subsidiary 260 million 897222693 505142583 923750684 105884164 97621154 Glass Co. Ltd. various special glass Anhui CSG Silicon Valley Mingdu Mining Subsidiary Mining 360 million 938944937 254531134 -83234766 -62478664 Development Co. Ltd.Development and Hebei Vision production of Subsidiary 243 million 550556648 215604881 167727051 -66950000 -55958055 Glass Co. Ltd. various ultra- thin electronic glass Dongguan CSG Deep Architectural Subsidiary processing of 270 million 1060869213 681590782 1007792886 135476274 119631827 Glass Co. Ltd. glass Sichuan CSG Deep Energy Subsidiary processing of 180 million 728240383 415245809 724837030 75663079 67898720 Conservation glass Glass Co. Ltd.Wujiang CSG Deep East China Subsidiary processing of 320 million 992350899 616016838 999079457 98364266 86816724 Architectural glass Glass Co. Ltd.Xianning CSG Deep Energy-saving Subsidiary processing of 215 million 719081545 311675254 685379947 56909691 50302209 Glass Co. Ltd. glass Production Qingyuan CSG and sales of Energy-Saving Subsidiary various ultra- 1055 million 1401995053 1145175244 541249494 42284995 39143034 New Materials thin electronic Co. Ltd.glass Production Hebei CSG $48.066 Subsidiary and sales of 1030383209 565171710 920378078 81926983 73670282 Glass Co. Ltd. million various 34CSGAnnual Report 2024 special glass Tianjin CSG Deep Energy-Saving Subsidiary processing of 336 million 1056848754 616974341 1046669078 112685632 100420943 Glass Co. Ltd. glass Particulars about subsidiaries obtained or disposed in report period √ Applicable □ Not applicable Please refer to "1. Changes in the scope of consolidation due to other reasons" under Note "IX. Changes in the scope of consolidation" to "Section X. Financial Report".Description of main holding and shareholding companies Yichang CSG Polysilicon Co. Ltd. and Dongguan CSG PV-tech Co. Ltd. saw a year-on-year decrease in net profit mainly due to the decline in production and sales volumes and unit prices of their primary products and the impairment provisions for long-term assets based on the results of asset impairment tests during the year.Anhui CSG New Energy Material Technology Co. Ltd. Xianning CSG Glass Co. Ltd. Dongguan CSG Solar Glass Co. Ltd. and Guangxi CSG New Energy Material Technology Co. Ltd. saw a year-on-year decrease in net profit mainly due to the decreased prices of photovoltaic glass.Chengdu CSG Glass Co. Ltd. saw a year-on-year decrease in net profit mainly due to the decreased prices of float glass.Anhui CSG Silicon Valley Mingdu Mining Development Co. Ltd. saw a year-on-year decrease in net profit mainly because it started amortizing its mining rights from mid-2023 and the amortization period in 2024 was longer than that in 2023.Hebei Panel Glass Co. Ltd. saw a year-on-year decrease in net profit mainly due to the decreased prices of electronic glass and the increased provisions for inventories during the year.Shenzhen CSG Applied Technology Co Ltd. saw a year-on-year decrease in net profit mainly due to the increased deferred tax liabilities as a result of its changed income tax rate.X. Structured main bodies controlled by the Company □ Applicable √ Not applicable 1. Tendency of development of the industries the Company engages Please refer to the relevant content of "I. Particulars about the industry the Company engages in during the report period". 2. The Company's development strategy The Group will formulate strategic development goals and implement strategic development plans under the guidance of the national strategic goals of "dual carbon" with a focus on "low carbon and energy saving green and environmental protection scientific and technological innovation and intelligent manufacturing". The Company forms the three industrial clusters of energy-saving glass electronic glass and photovoltaic materials and create the three high-grade products of "Ice Kirin" multi-silver low-E glass "Kirin King" high-grade electronic glass and "Blue Diamond" ultra-white glass. The Company will integrate industrial resources strengthen the advantage of raw material resources improve technology and R&D strength continue to enhance its core competitiveness expand market share and market influence occupy a dominant position in the industry and comprehensively improve the credibility and influence of the CSG brand. Also it will plan the layout of the CSG industry from a global and macro 35CSGAnnual Report 2024 perspective accelerate the development of new industries and consolidate the Company's capability to resist cyclical risks and build CSG into an internationally influential enterprise group that is related to both the upstream and downstream portions of the glass industry and the energy industry. 3. Business plan of the Company in 2025 * Strengthen the capability of group operation and management improve the level of fine management and professional management and promote the implementation of such measures as cost reduction and efficiency enhancement management supply chain management lean management and internal control process management to ensure the completion of the Company's operation and construction objectives in 2025.* Build an information platform for R&D management improve the qualification of the R&D innovation platform of CSG plan the pipeline for the development of the next generation of new products promote technological upgrading and product iteration and promote the R&D and industrialization of high-value products.* Enhance talent management establish a remuneration incentive system that links remuneration with performance improve the Company's incentive mechanism strengthen employee training select and cultivate reserve cadres introduce high-quality talents and intensify the building of talents echelon.* Continue to deepen marketing consolidate main business orders enhance promotion of differentiated products and strengthen overseas market development; * Strengthen the capital planning control capital risks expand financing channels and reduce financing costs.* Continue to promote lean cost management and reduce production costs by improving yield rate and energy efficiency to enhance market competitiveness.* Steadily promote the safe construction and timely operation of projects under construction and explore the relevant industrial chains for breakthroughs; and * Adhere to the "1+2+5" working approach improve the safety environmental protection and duty performance capability management system and carry on with the building of the informatization management platform for safety and environmental protection to comprehensively improve safety and environmental protection management. 4. Fund demand use plan and fund source In 2025 the Company's capital expenditure is expected to be approximately RMB 2695 million which is mainly used for construction of the project of lightweight & high-permeability panel for solar energy equipment and complementary sand ore projects construction of the Qinghai high-purity crystalline silicon project technical upgrade and transformation in all relevant industries capacity expansion etc. The main sources of funds are own funds and loans from financial institutions. 5. Risk factors and countermeasures In 2025 facing the dynamic changes in the political and economic landscape at home and abroad and the task of building a "Century CSG" the Company will face the following risks and challenges: * The international political environment still faces many uncertainties.Affected by the complicated international political environment the domestic economy still faces many challenges and uncertainties. In 2025 the Company will continue to work hard on its internal strength reduce various costs strengthen its attention to the market intensify its analysis of market trends flexibly adjust its strategies and strive to achieve the annual core work objectives through steady operation. 36CSGAnnual Report 2024 * The glass industry is subject to pricing risks caused by intense market competition in similar products and cost fluctuations in raw materials and fuel. In the photovoltaic glass industry substantial production capacity is pending release and the mismatch between supply and demand remains prominent. This has placed performance pressure on the Company's photovoltaic glass business led to a lengthened accounts receivable cycle and posed severe challenges to cash flow. The architectural glass business is encountering increased operational pressure and rising uncertainty due to intensified market competition. The float glass business faces the risk of temporarily decreased demand in the downstream architectural glass market. The electronic glass business is exposed to risks from rapid technological iteration and significant fluctuations in market demand. The solar energy business faces the risk of temporary supply-demand mismatch and falling prices due to the continued release of new production capacity. To cope with the aforesaid risks the Company will take the following measures: A. In the photovoltaic glass segment on the product side the Company will align deeply with market demand optimise the product structure continue to promote lean management and differentiated operation and enhance profitability. On the cost side the Company is fully committed to the stability of the production process and the effective improvement of product quality and will unswervingly and continuously promote cost reduction and efficiency enhancement and advance special cost control campaigns so as to strengthen the core competitiveness. On the sales side the Company will actively explore markets integrate into external market cycles and establish strong connections with overseas markets to ensure timely fund recovery and secure profit margins. It will also increase efforts to develop high-quality key customers solidify partnerships enhance industry competitiveness and maintain controllable risk levels.B. In the architectural glass segment the Company will focus on reducing the three consumption indicators at the production end and implement system-level intelligent upgrades to streamline labour costs optimise material loss rates and manage energy consumption per unit output thereby comprehensively improving total-factor productivity and resource intensification. Meanwhile the Company will expand its presence in high-end and overseas markets to proactively respond to market changes. The Company will continuously deepen market development refine market layout and increase market share. Further investment will be made in R&D to support new product development and application expansion in emerging sectors and expand the application track. The Company will enhance service capabilities and give full play to quality technology and brand advantages and at the same time maintain the advantageous position of the Company through market-oriented extension of the industrial chain.C. In the float glass segment the Company will persist in pursuing differentiated operations refining product structure and boosting the share of high-value-added offerings. Additionally through technological upgrades the Company aims to enhance production efficiency and lower manufacturing costs thereby consistently enhancing its competitive edge in the industry.D. In the electronic glass and display segment facing fierce market competition the Company will adhere to a prudent business strategy and continue to strengthen CSG's brand presence for electronic glass. The Company will increase R&D investment continuously improve product competitiveness raise the proportion of mid-to-high-end product sales significantly enhance customer recognition of CSG's brand in high-end markets and strive to increase shares in mid-to-high-end markets. Meanwhile the Company will also continue to expand into new markets and develop new applications to maintain a leading edge in the fiercely competitive landscape.E. In the solar energy segment the Company will comprehensively strengthen the integration of resources across the industry chain closely track market dynamics and respond swiftly to key supply chain indicators. It will closely monitor price trends supply-demand relationships and changes in terminal demand across upstream and downstream procurement and sales segments. Through increased investment in R&D the Company aims to build a core technology patent pool and improve operational management capabilities to ensure competitiveness in niche markets.At the same time the Company will continue to implement the cost reduction and efficiency enhancement strategy 37CSGAnnual Report 2024 promote energy-saving and consumption-reduction measures and strengthen cost control. The Company will progressively upgrade equipment through intelligent transformation and phased replacement establish a flexible and adaptive production system and scientifically manage inventory levels. By leveraging the technical and cost advantages of new production lines and the efficient and professional operational capabilities of teams the Company will continue to consolidate and enhance its leadership position in the industry.* Risk of fluctuation of foreign exchange rate: At present nearly 7.76% of the operating revenue of the Company is from overseas and in the future the Company will further develop overseas business. Therefore the fluctuation of exchange rate will bring certain risk to the operation of the Company. To cope with such risk the Company will settle exchange in a timely manner and use safe and effective risk evading instrument and product to relatively lock exchange rate thus reducing the risk caused by fluctuation of exchange rate.XII. Reception of research communication and interview □Applicable √ Not applicable No reception of research communication interview and other activities occurred during the reporting period.XIII. Formulation and implementation of market value management system and valuation improvement plan Whether the company has established a market value management system.□Applicable √ Not applicable Whether the company has disclosed plans to raise its valuation.□Applicable √ Not applicable XIIII. Implementation of the "Quality and Earnings Dual Improvement" Action Plan Indicate whether the Company has disclosed the "Quality and Earnings Dual Improvement" Action Plan.□ Yes √ No 38CSGAnnual Report 2024 Section IV. Corporate Governance 1.Basic Situation of Corporate Governance In strict compliance with the requirements of the relevant laws and regulation including The Company Law Securities Law and Rule of Governance for Listed Company the Company has been putting efforts in improving the corporate governance strengthening management of information disclosure regulating operation activities and establishing a modern corporate system. At present the system for corporate governance of the Company is basically sound operation is regulated corporate governance is consummated which accord with the requirements of relevant documents on corporate governance of listed company issued by CSRC.According to the "Company Law" and other relevant laws and regulations and the "Articles of Association" the Company has established and improved a relatively standardized corporate governance structure and formed a decision-making and operation management system with the shareholders' meeting the board of directors the board of supervisors and the Company's management as the main structure. The power organs decision-making bodies supervision bodies and managers have clear rights and responsibilities perform their respective duties and effectively monitor and balance and perform various duties stipulated in the "Company Law" and "Articles of Association" in accordance with the law. According to the "Articles of Association" and other relevant corporate governance regulations the Company has formulated the "Procedure Rules for Shareholders' Meeting" "Procedure Rules for the Board of Directors" "Procedure Rules for the Supervisory Committee" "General Manager's Work Rules" and other relevant systems which provides an institutional guarantee for the standardized operation of the corporate governance structure of the Company.The Company's "Three Committees" (General Meeting of Shareholders Board of Directors and Board of Supervisors) operate in a standardized manner and the procedures for convening and convening meetings comply with relevant regulations. The current directors supervisors and senior management are able to actively and effectively fulfill relevant responsibilities and obligations. Independent directors have put forward opinions or suggestions on the company's development decisions. The Company respects and listens to the opinions and suggestions of independent directors and implements them in accordance with the final resolutions of the board of directors and the shareholders' meeting playing a positive role in safeguarding the interests of the company and small and medium-sized shareholders. At the same time the Company also provides sufficient protection for the performance of independent directors and supervisors. The Board of Directors has established four special committees namely the Strategy Committee the Audit Committee the Nomination Committee and the Remuneration and Evaluation Committee to assist the Board of Directors in performing relevant functions and provide professional suggestions and opinions for the Board of Directors' decision-making. The Board of Directors and the Board of Supervisors of the Company report to the General Meeting of Shareholders on the performance of their duties by directors and supervisors and the independent directors make a debriefing report to the General Meeting of Shareholders. The senior management personnel have a clear division of labor clear responsibilities and authorities and operate in compliance with laws and regulations.In strict accordance with the requirements of the Listing Rules of Shenzhen Stock Exchange and other relevant laws and regulations the Company earnestly performs the obligation of information disclosure to ensure the authenticity accuracy integrity and timeliness of information disclosure. The Company earnestly fulfills its information disclosure obligations in strict accordance with the requirements of the Shenzhen Stock Exchange Listing Rules and other relevant laws and regulations to ensure the truthfulness accuracy completeness and timeliness of information disclosure. Shanghai Securities News Securities Daily and Juchao Website (www.cninfo.com.cn) are designated 39CSGAnnual Report 2024 media for the Company's information disclosure to ensure that all shareholders of the Company have equal access to the Company's business information. The Company has established the Information Disclosure Management System and promptly improved it in accordance with newly issued laws and regulations clarified the standards of insider information and established inside information insider registration system and record management system. In order to further strengthen the Company's internal information disclosure control enhance the disclosure consciousness of relevant personnel and improve the quality of corporate information disclosure in 2016 the Company set up an information Disclosure Committee and formulate Rules for the implementation of the information disclosure Committee. During the report period the Company disclosed information with facticity completeness timeliness and fairness strictly fulfilled the responsibilities and obligations of information disclosure of listed companies to ensure that investors are able to keep abreast of the Company's operation and development strategies. There was no regulatory punishment caused by information disclosure in the report period. Meanwhile the Company delivered the Inside Information Insider Table to Shenzhen Stock Exchange when submitting periodic reports.The Company has seriously implemented the requirements of the relevant regulatory to cash dividends. The Company formulated the Return plan for Shareholders of CSG Holding Co. Ltd. in the Next Three Years (2022-2024) according to relevant regulations of the Notice of Further Implementation of Cash Dividends of the Listed Companies (ZJF No.: [2012] 37) and the Regulatory Guidelines of Listed Companies No. 3-Cash Dividends of Listed Companies issued by China Securities Regulatory Commission further improved the Company's decision-making and supervision mechanism for distribution of profits and protected the interests of investors.During the report period it did not exist that the Company provided the undisclosed information to the largest shareholder. And it did not exist that the non-operating fund of a listed company was occupied by the largest shareholder and its affiliated enterprises.Whether the actual condition of corporate governance is materially different from the laws administrative regulations and the provisions on the governance of listed companies issued by the CSRC □Yes √ No The actual condition of corporate governance is not materially different from laws administrative regulations and the provisions on the governance of listed companies issued by the CSRC.II. Independency of the Company relative to the largest shareholder in aspect of businesses personnel assets organization and finance During the report period the Company has been absolutely independent in business personnel assets organization and finance from its largest shareholder. The Company has an independent and complete business system and independent management capability. 1. In terms of business: The Company owns independent purchase and supply system of the raw resources complete production systems independent sale system and customers. The Company is completely independent from the largest shareholder in business. The largest shareholder and its subsidiaries do not engage any identical business or similar business as the Company. 2. In terms of personnel: The Company established integrated management system of labor personnel salaries and social security which were absolutely independent from its holding shareholder's. Personnel of the managers person in charge of the financial and other executive managers are obtained remuneration from the Company since on duty in the Company and never received remuneration or take part-time jobs in the largest shareholder’ company and other enterprises controlled by the largest shareholder. The recruitment and dismissal of Directors are conducted through legal procedure and the manager has been appointed or dismissed by the Board of Directors. The Board of Directors and the Shareholders' General Meeting have not received any interference of decisions on personnel 40CSGAnnual Report 2024 appointment and removal from the largest shareholder. 3. In terms of asset: the Company is able to operate business independently and enjoys full control over the production system auxiliary production system and facilities land use right industry property and non-patent technology owned or used by the Company. The largest shareholder has never occupied damaged or intervened to operation on these assets. 4. In terms of organization: The Company possessed sound corporate governance structure established Shareholders' General Meeting Board of Directors Supervisory Board appointed Senior management and fixed related function departments. The Company had been totally independent from its largest shareholder in organization structure. The Company has its own office and production sites that are different from those of the largest shareholder. The largest shareholder has not in any way affected the independence of the Company's operation and management. 5. In terms of finance: The Company has set up independent financial department established independent accounting calculation system and financial management system (included management system of its subsidiaries).The financial personnel of the Company didn't take part-time jobs in units of the largest shareholder or its subordinate units. The Company has independent bank accounts separated from the largest shareholder. The Company is independent taxpayer paid taxes independently according the laws and didn't pay mixed taxes with the largest shareholder. The financial decision-making of the Company was independent and the use and management of funds were independent. The Company never offered guarantee to their largest shareholder and its subordinate units and other related party. The largest shareholder and its related have never occupied or disguisedly occupied the capital of the Company.III. Horizontal competition □ Applicable √ Not applicable IV. Information on the annual general meeting and extraordinary general meeting held during the report period 1. The General Meeting of Shareholders during the report period Ratio of Date of Session of meeting Type investor Meeting date Meeting resolution disclosure participation Extraordinary Announcement on Resolutions of the The First Extraordinary General February February First Extraordinary General General Shareholders' 24.29% Shareholders' 272024 282024 Shareholders' Meeting of 2024 Meeting of 2024 Meeting (Announcement No.: 2024-003) Annual Announcement on Resolutions of Annual General General Annual General Shareholders' Shareholders' Meeting of 25.74% June 202024 June 212024 Shareholders' Meeting of 2023 (Announcement No.: 2023 Meeting 2024-013) Extraordinary Announcement on Resolutions of the The Second Extraordinary General October October Second Extraordinary General General Shareholders' 25.69% Shareholders' 252024 262024 Shareholders' Meeting of 2024 Meeting of 2024 Meeting (Announcement No.: 2024-025) 2. The preference shareholders whose voting rights have been restored request the convening of an extraordinary general meeting □ Applicable √ Not applicable 41CSGAnnual Report 2024 V. Directors supervisors and senior executives 1. Basic information Amount of Amount of shares shares Reason for End date Shares held at Other Shares held Working Start dated of increased decreased increase or Name Sex Age Title of office period-begin changes at period- status office term in this in this decrease of term (Share) (share) end (Share) period period shares (Share) (Share) Chairman of the Currently in Chen Lin Female 53 2016/11/19 1623065 1623065 Board office Currently in Shen Chengfang Male 59 Director 2022/08/03 office Independent Currently in Zhu Qianyu Female 50 2019/04/10 Director office Independent Currently in Zhang Min Male 48 2022/11/25 Director office Independent Currently in Shen Yunqiao Male 49 2023/03/16 Director office Currently in Cheng Jinggang Male 44 Director 2020/05/21 office Currently in Yao Zhuanghe Male 66 Director 2020/05/21 office Currently in Cheng Xibao Female 43 Director 2016/01/21 office Chairman of the Supervisory Currently in Li Jianghua Male 48 Board 2019/03/27 office Employee Supervisor Currently in Meng Lili Female 47 Supervisor 2020/05/21 office Employee Currently in Dai Pingsheng Male 43 2021/07/08 Supervisor office Secretary of the Party Currently in Committee 2022/05/16 office He Jin Male 53 Executive Vice 897600 897600 President Currently in Acting CEO 2022/08/15 office Currently in Vice President 2022/05/16 office Wang Wenxin Female 47 154600 154600 Chief Financial Currently in 2022/05/16 Officer office Secretary of the Currently in Xu Lei Male 40 2024/09/23 Board office Secretary of the Leave 2024/09/ Chen Chunyan Female 43 2022/09/26 49271 49271 Board one's post 13 Total -- -- -- -- -- -- 2724536 0 0 0 2724536 -- During the report period whether there was any resignation of directors and supervisors and dismissal of senior executives during their terms of office √ Yes □ No 42CSGAnnual Report 2024 On September 132024 the Board of Directors of the Company received a written resignation report from Ms. Chen Chunyan secretary of the Board of Directors of the Company who applied for resignation from the position of Secretary of the Board of Directors of the Company due to work adjustment.Changes in directors supervisors and senior executives of the company √ Applicable □ Not applicable Name Position Type Date Reason Chen Chunyan Secretary of the Board Non-reappointment 2024/09/13 Job transfer Xu Lei Secretary of the Board Engage 2024/09/23 Job transfer 2. Post-holding Major professional backgrounds and working experience of directors supervisors and senior executives and their major responsibilities in the Company at present Chen Lin: At present she is Chairman of the Supervisory Committee of Foresea Life Insurance Co. Ltd. and Chairman of the Board of the Company.Shen Chengfang: He took the posts of Chief Actuary of Ping An Life Insurance Company of China Ltd. and Chief Actuary and Deputy General Manager of Foresea Life Insurance Co. Ltd. At present. He is General Manager and Executive Director of Foresea Life Insurance Co. Ltd. and Director of the Company.Zhu Qianyu: At present she is an associate professor and a supervisor of masters at the Renmin University of China and a researcher at the Institute for Rural Economy and Finance Institute for National Development and Strategies and Institute for Carbon Peak and Neutrality of the Renmin University of China. She has undertaken more than ten research projects funded by the National Natural Science Foundation of China the National Social Science Fund of China the Social Science Fund of Beijing the National Development and Reform Commission the Ministry of Science and Technology of the People's Republic of China and the Ministry of Industry and Information Technology of the People's Republic of China and had over 50 papers published by foreign SSCI and SCI journals and domestic journals. Additionally her scientific research achievements won the first second and third prizes for social science research achievements from the National Ethnic Affairs Commission of the People's Republic of China the third prize for excellent results from the National Bureau of Statistics the second prize in the 13th Beijing Outstanding Achievement Award in Philosophy and Social Science and the third prize in the Award for Excellent Achievements in Scientific Research in Institutes of Higher Education of the Ministry of Education (Humanities and Social Science).She is serving as a project training and evaluation expert at the World Bank the National Rural Revitalization Administration and the Head Office of Agricultural Bank of China and a reviewer of the National Natural Science Foundation of China. She is also Independent Director of Chongqing Brewery Co. Ltd. Bank of Guiyang Co. Ltd.and the Company.Zhang Min: He served as a lecturer an associate professor a supervisor of doctors and Deputy Director of the Department of Accounting of Renmin Business School at the Renmin University of China as well as Independent Director of Beijing SPC Environment Protection Tech Co. Ltd. At present he is a professor a supervisor of doctors and Director of the Department of Accounting of Renmin Business School at the Renmin University of China.Concurrently he is Independent Director of SDIC Capital Co. Ltd. BYD Co. Ltd. and the Company.Shen Yunqiao: He served as an assistant professor at the Faculty of Law Macau University of Science and Technology a legal adviser for Guangzhou Nansha New Zone and the China (Guangdong) Pilot Free Trade Zone Nansha Area and Independent Director of Guangdong Delian Group Co. Ltd. At present he is an associate professor and a supervisor of doctors at the Faculty of Law and Director of the Research Centre for Arbitration and Dispute 43CSGAnnual Report 2024 Resolution Macau University of Science and Technology. He is also Independent Director of the Company.Concurrently he is Independent Director of Shenzhen Utimes Intelligent Equipment Company Limited and Hunan Nucien Pharmaceutical Co. Ltd. Director of the Commercial Law Institute of China Law Society and Legislative Council Institute of China Law Society an off-campus supervisor of postgraduates and a researcher of the Asia- Pacific Institute of Law Renmin University of China Deputy Director of the Asia-Pacific Arbitration Research Committee of the Asia-Pacific Institute of Law Renmin University of China an export of the Expert Pool for Offshore Services of Pazhou Artificial Intelligence and Digital Economy Law Identification and Commercial Mediation Centre Haizhu District Guangzhou Deputy Secretary General of the Law Committee of the Council for the Promotion of Guangdong-Hong Kong-Macao Cooperation a member of the 100-Member Group of the Shandong Foreign Arbitration Service of the Department of Justice Shandong Vice Chairman of Macau Association for Legal Professionals an arbitrator of the Consumer Mediation and Arbitration Centre Macao SAR Government Consumer Council and Vice Chairman of Renmin University of China Alumni Association of Macao. Moreover he is an arbitrator of more than 20 arbitration institutions including the China International Economic and Trade Arbitration Commission Beijing Arbitration Commission Shanghai International Arbitration Centre Shanghai Arbitration Commission Shenzhen Court of International Arbitration. Guangzhou Arbitration Commission Zhuhai Court of International Arbitration Foshan Arbitration Commission Hainan International Arbitration Court Nanjing Arbitration Commission Qingdao Arbitration Commission and Xi'an Arbitration Commission.Cheng Jinggang: He took the posts of Senior Credit Analyst of the Fixed Income Department of Funde Sino Life Insurance Co. Ltd. and Senior Manager of the Credit Evaluation Department of Sino Life Asset Management Co.Ltd. At present he is Joint Director of the Asset Management Centre of Foresea Life Insurance Co. Ltd. and Director of the Company.Yao Zhuanghe: He took the posts of Deputy Director of the Department of Food Science and Engineering at South China University of Technology Deputy General Manager and General Manager of Guangdong United Food Enterprise Centre Director of Guangdong Yuehua International Trade Group Deputy General Manager of Guangdong Guangye Economic Development Group Director and General Manager of Guangdong Guangye Investment Consulting Co. Ltd. Director and Deputy Party Committee Secretary of Guangdong Guangye Environmental Construction Group (former Guangdong Guangye Real Estate Group). At present he is Director of the Company.Cheng Xibao: She took the posts of Manager Vice President and Executive Vice President of the Financial Department and President Assistant Vice President and Senior Vice President of Shenzhen Baoneng Investment Group Co. Ltd. Director of Foresea Life Insurance Co. Ltd. Supervisor of Guizhou Baoneng Automobile Co. Ltd.Vice President of Baoneng Motor Group Co. Ltd. and Executive Vice President of Baoneng City Development and Construction Group Co. Ltd. At present she is Senior Vice President of Shenzhen Baoneng Investment Group Co.Ltd. Supervisor of Xinjiang Qianhai United Property & Casualty Insurance Co. Ltd. and Director of Baoneng Motor Group Co. Ltd. Qoros Automobile Co. Ltd. Shenzhen Baoneng Travel Co. Ltd. and the Company.Li Jianghua: He took the posts of Assistant General Manager of the Operation Service Department and Deputy General Manager of the Public Development Department of the Information Management Centre of Foresea Life Insurance Co. Ltd. Deputy General Manager of the IT Department of Xinjiang Qianhai United Property & Casualty Insurance Co. Ltd. and General Manager of the Integrated Financial Development Department of the Information Management Centre of Foresea Life Insurance Co. Ltd. At present he is Chairman of the Supervisory Committee and Director of the Information Management Department of the Company.Meng Lili: At present she is Deputy Director of the Human Resources Centre General Manager of the Office of the Board of Directors and Employee Supervisor of Foresea Life Insurance Co. Ltd. and Supervisor of the Company.Dai Pingsheng: He took the posts of Financial Manager of Dongguan CSG Solar Glass Co. Ltd. Deputy Manager 44CSGAnnual Report 2024 Assistant Director and Deputy Director of the Financial Management Department of CSG and Vice President of the Architectural Glass Division of CSG. At present he is Assistant President Director of the Strategic Investment Department and Employee Supervisor of the Company.He Jin: He took the posts of General Manager of Shenzhen CSG Float Glass Co. Ltd. Vice President of Float Glass Division General Manager of Dongguan CSG Solar Glass Co. Ltd. General Manager of Chengdu CSG Glass Co.Ltd. General Manager of Qingyuan CSG Energy Saving New Materials Co. Ltd. Assistant President of the Company and President of Flat Glass Division and Vice President of the Company. At present he is Secretary of the Party Committee Acting Chief Executive Officer Executive Vice President and Chairman of the Management Committee of the Company.Wang Wenxin: She took the posts of Assistant President Director of the Financial Management Department and Executive Vice President of CSG. At present she is Vice President and Chief Financial Officer of the Company.Xu Lei: Former analyst of Dagong International Credit Evaluation Co. LTD. deputy director of Risk control of Asset Management Center of Foresea Life Insurance Co. LTD. securities affairs representative of China Southern Glass Group Co.LTD. deputy director of the Office of the Board of Directors; At present he is Secretary of the Board of Directors and Director of the Office of the Board of Directors of the Company.Post-holding in shareholder's unit √ Applicable □ Not applicable Received End date remuneration Start dated of Name Name of shareholder's unit Position in shareholder's unit of office from office term term shareholder's unit or not Chen Lin Foresea Life Insurance Co. Ltd. Chairman of Supervisory Board May 2012 Yes General Manager August 2018 Shen Chengfang Foresea Life Insurance Co. Ltd. Yes Executive Director July 2019 Director of the Asset Cheng Jinggang Foresea Life Insurance Co. Ltd. February 2023 Yes Management Center Deputy Director of Human January 2021 Resources Center Meng Lili Foresea Life Insurance Co. Ltd. General Manager of the Office of Yes July 2019 the Board of Directors Employee Supervisor June 2016 Note of post-holding in shareholder's unit N/A Post-holding in other units √ Applicable □ Not applicable Receive Date of Date of remunerati Positions in other terminatio Name Unit name commencement on from units n of office of office term other units term or not Renmin University of China Associate Professor March 2010 Yes Zhu Qianyu Chongqing Brewery Co. Ltd. Independent Director May 2022 Yes Bank of Guiyang Co. Ltd. Independent Director February 2024 Yes Renmin University of China Professor June 2010 Yes Zhang Min BYD Co. Ltd. Independent Director September 2020 Yes SDIC Capital Co. Ltd. Independent Director September 2019 Yes Macau University of Science and Shen Yunqiao Associate Professor July 2015 Yes Technology 45CSGAnnual Report 2024 Shenzhen Utimes Intelligent Independent Director January 2022 Yes Equipment Co. ltd.Hunan Nucien Pharmaceutical Co.Independent Director June 2023 Yes Ltd.Shenzhen Baoneng Investment Senior Vice President November 2020 Yes Group Co. Ltd.Baoneng Motor Group Co. Ltd. Director December 2017 No Xinjiang Qianhai United Property & Cheng Xibao Supervisor September 2016 No Casualty Insurance Co. Ltd.Qoros Automobile Co. Ltd. Director December 2017 No Shenzhen Baoneng Travel Co.Director September 2019 No LTD.Note of post-holding in other units N/A Punishment of securities regulatory authority in the last three years to the Company's current and retired directors supervisors and senior management during the report period □ Applicable √ Not applicable 3. Remuneration of directors supervisors and senior executives Decision-making procedures recognition basis and payment for directors supervisors and senior executives 1. Decision-making procedures: The allowances for independent directors external directors from non-shareholder's unit are planned and proposed by the Remuneration & Assessment Committee of the Board and approved by the Shareholders' General Meeting after deliberation of the Board. Remuneration for senior executives is proposed by the Remuneration & Assessment Committee of the Board and decided by the Board after discussion. 2. Confirmation basis of remuneration: The allowances for independent directors and external directors are confirmed based on industry standards and the real situation of the Company. The remuneration for senior executives implements floating reward mechanism with reference to basic salary and business performance. Bonus for performance rewards is withdrawal by proportion quarterly according to return on equity and based on the total net profit after taxation. 3. Actual remuneration payment: The allowances for each of the Company's independent directors external director from non-shareholder's unit are RMB 0.3 million per year paid by actual month of service. The total remuneration for directors supervisor and senior executives in the report period was RMB 14.5412 million.Remuneration of directors supervisors and senior executives of the company during the report period Unit: RMB 0000 Total Received remuneration remuneration obtained Post-holding from related Name Sex Age Title from the status party of the Company Company or before not taxation Chen Lin Female 53 Chairman of the Board Currently in office 0 Yes Shen Chengfang Male 59 Director Currently in office 0 Yes Zhu Qianyu Female 50 Independent Director Currently in office 30 No Zhang Min Male 48 Independent Director Currently in office 30 No Shen Yunqiao Male 49 Independent Director Currently in office 30 No Cheng Jinggang Male 44 Director Currently in office 0 Yes Yao Zhuanghe Male 66 Director Currently in office 30 No Cheng Xibao Female 43 Director Currently in office 0 Yes 46CSGAnnual Report 2024 Chairman of the Supervisory Li Jianghua Male 48 Currently in office 236.77 No Board Employee Supervisor Meng Lili Female 47 Supervisor Currently in office 0 Yes Dai Pingsheng Male 43 Employee Supervisor Currently in office 161.58 No Secretary of the Party He Jin Male 53 Committee Vice Currently in office 400.47 No presidentexecutive vice president Vice President Chief Financial Wang Wenxin Female 47 Currently in office 300.18 No Officer Xu Lei Male 40 Secretary of the Board Currently in office 127.38 No Chen Chunyan Female 43 Secretary of the Board Leaving office 107.74 No Total -- -- -- -- 1454.12 -- Other information note □ Applicable √ Not applicable VI. Directors' performance of duties during the report period 1.Board of directors in the report period Session Meeting date Date of disclosure Resolution of the meeting The Interim For details please refer to Juchao Website (www.cninfo.com.cn): Meeting of the February 07 2024 February 08 2024 "Announcement on Resolution of the Interim Meeting of the Ninth Board of Ninth Board of Directors" (Announcement No.: 2024-001) Directors The 13th Meeting For details please refer to Juchao Website (www.cninfo.com.cn): of the Ninth April 24 2024 April 26 2024 "Announcement on Resolution of the 13th Meeting of the Ninth Board of Board of Directors" (Announcement No.: 2024-004) Directors The Interim For details please refer to Juchao Website (www.cninfo.com.cn): Meeting of the April 25 2024 April 29 2024 "Announcement on Resolution of the Interim Meeting of the Ninth Board of Ninth Board of Directors" (Announcement No.: 2024-009) Directors The Interim For details please refer to Juchao Website (www.cninfo.com.cn): Meeting of the May 29 2024 May 30 2024 "Announcement on Resolution of the Interim Meeting of the Ninth Board of Ninth Board of Directors" (Announcement No.: 2024-011) Directors The 14th Meeting For details please refer to Juchao Website (www.cninfo.com.cn): of the Ninth August 22 2024 August 26 2024 "Announcement on Resolution of the 14th Meeting of the Ninth Board of Board of Directors" (Announcement No.: 2024-015) Directors The Interim For details please refer to Juchao Website (www.cninfo.com.cn): Meeting of the September 23 September 24 "Announcement on Resolution of the Interim Meeting of the Ninth Board of 2024 2024 Ninth Board of Directors" (Announcement No.: 2024-020) Directors The Interim For details please refer to Juchao Website (www.cninfo.com.cn): Meeting of the October 08 2024 October 09 2024 "Announcement on Resolution of the Interim Meeting of the Ninth Board of Ninth Board of Directors" (Announcement No.: 2024-021) Directors The Interim For details please refer to Juchao Website (www.cninfo.com.cn): Meeting of the October 21 2024 October 23 2024 "Announcement on Resolution of the Interim Meeting of the Ninth Board of Ninth Board of Directors" (Announcement No.: 2024-024) Directors The Interim October 28 2024 - The Third Quarter Report 2024 was reviewed and approved Meeting of the 47CSGAnnual Report 2024 Ninth Board of Directors 2. Attendance of directors at the board of directors and shareholders' meeting Attendance of directors at the board of directors and shareholders' meeting Failure to Number of board Number of Number of personally Number of meetings that Number of Meetings attendances of Number of attend board attendance of Name of director should be Spot Attended by board meeting absence meetings General attended in this Attendances Communication by proxy successively Meeting report period twice Chen Lin 9 2 7 0 0 No 3 Shen Chengfang 9 2 7 0 0 No 3 Zhu Qianyu 9 2 7 0 0 No 3 Zhang Min 9 1 8 0 0 No 3 Shen Yunqiao 9 1 8 0 0 No 3 Cheng Jinggang 9 2 7 0 0 No 3 Yao Zhuanghe 9 0 9 0 0 No 3 Cheng Xibao 9 0 9 0 0 No 3 Note to failure to attend the board meeting successively twice Not applicable 3. Objections raised by directors on matters related to the Company Whether directors raised any objection to the relevant matters of the Company √ Yes □ No Name of the Matter to which the director objected Details of the objection director The Proposal on the Authorization of the Company's Core Business Operations and the Proposal on A negative vote was cast. For reasons please refer to the Cheng Amending the Implementation Rules for the Announcement on Resolution of the Interim Meeting of Xibao Management Committee reviewed at the Interim the Ninth Board of Directors (Announcement No.: 2024- Meeting of the Ninth Board of Directors on February 001) dated February 8 2024 at http://www.cninfo.com.cn. 72024 The 2023 Annual Report and Summary and the A negative vote was cast. For reasons please refer to the Cheng Financial Final Report 2023 reviewed at the 13th Announcement on Resolution of the 13th Meeting of the Xibao Meeting of the Ninth Board of Directors on April 24 Ninth Board of Directors (Announcement No.: 2024-004) 2024 dated April 26 2024 at http://www.cninfo.com.cn. A negative vote was cast. For reasons please refer to the The First Quarter Report 2024 reviewed at the Interim Cheng Announcement on Resolution of the Interim Meeting of Meeting of the Ninth Board of Directors on April 25 Xibao the Ninth Board of Directors (Announcement No.: 2024- 2024 009) dated April 29 2024 at http://www.cninfo.com.cn. The Proposal on Amending the Implementation Rules A negative vote was cast. For reasons please refer to the Cheng for the Management Committee reviewed at the Announcement on Resolution of the Interim Meeting of Xibao Interim Meeting of the Ninth Board of Directors on the Ninth Board of Directors (Announcement No.: 2024- October 21 2024 024) dated October 23 2024 at http://www.cninfo.com.cn.Explanatio ns of the directors For details please refer to the announcements disclosed by the Company at http://www.cninfo.com.cn.for their objections 48CSGAnnual Report 2024 4. Other notes to duty performance of directors Whether the directors' suggestions on the Company have been adopted √ Yes □ No Notes to the adoption of or a failure to adopt directors' suggestions on the Company During the report period the current directors of the Company strictly followed the Company Law Securities Law Shenzhen Stock Exchange Listing Rules Guidelines for Self-discipline and Supervision of Listed Companies No. 1- Standardized Operation of Listed Companies on the Main Board Measures for the administration of independent directors of listed companies and other laws and regulations as well as the Articles of Association and other relevant systems to attend the Board of Directors and General Meeting of Shareholders of the Company conscientiously perform duties and provide comments or suggestions on decisions for the Company's development. The Company respected and listened to directors' comments and suggestions and implemented them according to the final resolutions of the Board of Directors and the General Meeting of Shareholders.VII. Duty performance of special committees under the Board of Directors in the report period Important Number comments Other Specific Name of the of and duty About the members Meeting date Meeting content objections Committee meetings suggestio performa (if any) held ns nce proposed Chairman of the The proposals Proposal Committee: Chen on Provisions for Asset Lin. Impairment Proposal Strategy Committee members: on Profit Distribution 1 April 14 2024 Approved. Committee Shen Chengfang for 2023 and Proposal Cheng Jinggang for the 2024 Guarantee Shen Yunqiao and Plan were reviewed and Zhu Qianyu. approved.The Financial Final Report 2023 the Internal Control Evaluation Report 2023 the Report on the Performance Evaluation Chairman of the of the Accounting Firm committee: Zhang in 2023 and the ReportApril 14 2024 Approved.Min. on the Audit Audit Committee members: 5 Committee's Committee Shen Yunqiao Zhu Performance of Qianyu Chen Lin Supervisory and Cheng Xibao. Responsibilities over the Accounting Firm were reviewed and approved.Matters on the First April 22 2024 Quarter Report 2024 Approved.was reviewed and 49CSGAnnual Report 2024 approved.The Proposal on the Changes in Accounting Policies and the August 12 2024 Matters on the Semi- Approved.annual Financial Report 2024 were reviewed and approved.Matters on the Re- appointment of the September 30 2024 Audit Institution of Approved. 2024 was reviewed and approved.Matters on the Third Quarter Report 2024 October 25 2024 Approved.was reviewed and approved.Chairman of the The Matters on committee: Shen Auditing the Remuneratio Yunqiao. Remuneration of n and Committee members: 1 April 14 2024 Directors Supervisors Approved.Assessment Zhang Min Zhu and Senior Executives Committee Qianyu Chen Lin of CSG in 2023 was and Cheng Jinggang. reviewed and approved.Chairman of the The Work of Directors committee: Zhu April 14 2024 in 2023 was reviewed Approved.Qianyu and approved.Nomination Committee members: 2 Matters on the Committee Shen Yunqiao Appointment of Zhang Min Chen September 18 2024 Secretary of the Board Approved.Lin and Shen was reviewed and Chengfang. approved.VIII. Work Summary of the Supervisory Committee Did the Supervisory Committee find any risk involved in performing the supervision activities in the report period □ Yes √ No The Supervisory Committee had no objection to the supervision matters during the report period.IX. Employees 1. Number Professional Composition and Education Background of Employees Number of employees in the parent company (person) 457 Number of employees in major subsidiaries of the Company (person) 14760 Total number of employees (person) 15217 Total number of employees received salaries in the period (person) 15217 Number of retired employees whose costs borne by the parent company 0 and its main subsidiaries (person) Professional composition Category of profession composition Number of profession composition (person) Production personnel 10534 50CSGAnnual Report 2024 Salesman 806 Technician 2542 Financial personnel 165 Administrative personnel 1170 Total 15217 Education background Category of education background Number (person) Doctor 5 Master 186 Undergraduate 3619 Junior college 2876 Degree below junior college 8531 Doctor 15217 2. Staff remuneration policy In 2024 the Company continued to emphasize the principle of "Performance Orientation" in compensation management strengthened the application of organizational performance results and individual performance results and advocated that salary incentives should be inclined to high-performing organizations. 3. Staff training plan The Company has always attached great importance to the talent team construction and staff training and development. Within the Group's Human Resources Department dedicated training modules have been established; and within subsidiaries' human resources departments training posts are set up. And dedicated staff and funds are earmarked to support the growth and literacy enhancement of employees.The Company has established training and development systems for employees at different levels including the "Navigation Series" designed for management across different tiers and the "Star Plan" aimed at nurturing talent from campus recruits to elites. Additionally it has developed personalized training and development programs for diverse professionals with adjustments made to the training plan according to the business plan every year. This approach aims to stimulate the drive of employees enhance the competitiveness of the enterprise and provide a strong guarantee for the development of CSG Group.In 2024 the Company continued to advance the iterative upgrade of the "Navigation Series" development system and launched a dedicated "Escort Initiative" focusing on enhancing the core competencies of newly appointed senior management personnel. Through a systematic empowerment program strategic thinking risk control and team leadership capabilities were strengthened further solidifying the foundation for the Group's echelon management construction. In terms of next-generation talent development the "Star Plan" the Group's signature campus recruitment initiative entered its 17th year of implementation. Positioned around the tri-dimensional approach of "Inspire * Integrate * Empower" the program introduced innovative modules such as executive dialogues and cross- generational experience inheritance significantly improving the job alignment and cultural integration of young employees. For the first time the Company also implemented a systematic enhancement initiative for previous campus recruits and established a long-term development mechanism through work report tracking special activity assessments and empowerment training achieving a closed-loop full-cycle talent management process.In 2025 the Company will continue to deepen the implementation and iteration of the "Navigation Series" and "Star Plan" with a focus on empowering key talents and upgrading the digital learning platform. It will continuously 51CSGAnnual Report 2024 optimize the effectiveness of the talent supply chain and provide sustainable organizational momentum for achieving strategic objectives. 4. Labor outsourcing □ Applicable √ Not applicable X. Profit Distribution and Reserve Capitalization Preparation implementation or adjustment of the policy for profit distribution especially the policy for cash dividend distribution in the report period √ Applicable □ Not applicable The profit distribution plan for 2023 was approved by the Annual General Shareholders' Meeting of 2023 held on 20 June 2024 which distributed distributing cash dividend of RMB 2.5 (tax included) for every 10 shares to all shareholders. Notice of the distribution was published on China Securities Journal Securities Times Shanghai Securities News Securities Daily and Juchao Website (www.cninfo.com.cn) on 9 July 2024 and the profit had been distributed.Special explanation on cash dividend policy Satisfy regulations of General Meeting or requirement of Article of Association (Yes/No) Yes Well-defined and clearly dividend standards and proportion (Yes/No) Yes Completed relevant decision-making process and mechanism (Yes/No) Yes Independent directors perform duties completely and play a proper role (Yes/No) Yes If the company does not pay a cash dividend it shall disclose the specific reasons and the next steps to enhance the return level of investors N/A Minority shareholders have ample opportunities and their legitimate rights and interests are effectively protected (Yes/No) Yes Condition and procedures are compliance and transparent while the cash bonus policy adjusted or changed (Yes/No) N/A The Company gains profits in the report period and the retained profit of the parent company is positive but no plan of cash dividend is proposed □ Applicable √ Not applicable Proposal of profit distribution preplan or share conversion from capital public reserve in the report period √ Applicable □ Not applicable Distributing bonus shares for every 10 shares (share) 0 Distributing cash dividend for every 10 shares (tax included) (RMB) 0.7 Shares added for every 10-share base (Share) 0 Equity base for distribution preplan (share) 3070692107 Total amount distribution in cash (RMB) (tax included) 214948447 Cash dividend amount in other ways (such as repurchasing shares) (RMB) 0 Total cash dividends (including other methods) (RMB) 214948447 Profit available for distribution (RMB) 2988398053 Cash distributing accounted for the proportion of the total amount of profit distribution (including other methods) 100% Particular about cash dividend in the period 52CSGAnnual Report 2024 If the company's development stage is not easy to distinguish but there are major capital expenditure arrangements when the profit is distributed the proportion of cash dividends in this profit distribution should be at least 20%.Details of proposal of profit distribution or share conversion from capital public reserve According to the Company Law and the Articles of Association when distributing the after-tax profit of the year the Company shall withdraw 10% of the profit as statutory reserve. If the accumulated amount of the Company's statutory reserve exceeds 50% of its registered capital no further withdrawal is required. The accumulated amount of the parent company's statutory reserve at the beginning of the period was RMB 1283520729 which was less than 50% of the Company's registered capital. Therefore the statutory reserve of RMB 81450884 was withdrawn this year and no discretionary reserve was withdrawn.According to the financial report audited by Grant Thornton Zhitong Certified Public Accountants LLP the net profit attributable to equity holders of the Company in the consolidated financial statements was RMB 266772318 in 2024.The net profit of the parent company's financial statements of RMB 814508836 plus the parent company's undistributed profit of RMB 3023013128 at the beginning of the year minus the actual distributed cash dividends of RMB 767673027 for 2023 and the Company's withdrawal of statutory surplus reserve of RMB 81450884 make the profit available for distribution to shareholders at the end of 2024 at RMB 2988398053. The undistributed profit in the Company's consolidated financial statements at the end of 2024 was RMB 8224198195. Based on the principle of the lower of the profit available for distribution in the consolidated financial statements and the parent company's financial statements the accumulated profit available for distribution to shareholders for the year was RMB 2988398053. In order to enhance investor confidence effectively safeguard the interests of investors and provide better shareholder return based on its profit available for distribution the Company intends to distribute cash dividend of RMB 0.7 (tax included) for every 10 shares to all shareholders based on 3070692107 shares of the total share capital as of December 31 2024 and the total distribution amount is RMB 214948447 (including tax). For 2024 no bonus shares will be given and no capital stock will be converted from provident fund. Where any change occurs to the Company's total share capital during the period from the disclosure date of this profit distribution preplan to the registration date of the implementation of the equity distribution the Company intends to maintain the same cash dividend per share and adjust the total distribution amount accordingly. The actual amount of the cash dividend distributed will be determined according to the total share capital on the registration date of the Company's implementation of the profit distribution plan.Total cash dividends for 2024: If the 2024 profit distribution proposal is approved by the general meeting of shareholders the Company's total cash dividends for 2024 will be RMB 214948447 accounting for 80.57% of the net profit attributable to the Company's shareholders for the year. The Company did not repurchase shares in 2024.As of now the Company's share repurchase plan has not been completed and the Company's shares held through the special account of repurchased shares will not be eligible for this profit distribution. When this profit distribution plan is implemented if the total number of shares eligible for the profit distribution changes the total amount of cash distribution will be adjusted accordingly based on the total number of shares eligible for the profit distribution on the record date when the distribution plan is implemented.The profit distribution plan complies with relevant laws and regulations the Company's Articles of Association and the Return Plan for Shareholders in the Next Three Years (2022-2024) and does not harm the interests of investors. It is legal compliant and reasonable. It is in line with the Company's actual situation and future development plans as well as taking into account the interests of shareholders.The above profit distribution preplan must be reviewed and approved by the 2024 Annual General Meeting of Shareholders of the Company.XI. Implementation of the Company's Equity Incentive Plan Employee Stock Ownership Plan or Other Employee Incentive Measures □ Applicable √ Not applicable During the report period the Company had no equity incentive plan employee stock ownership plan or other employee incentive measures and the implementation. 53CSGAnnual Report 2024 XII. Construction and Implementation of the Internal Control System during the Reporting Period 1. Construction and Implementation of the Internal Control System During the report period the Company established a sound and complete internal control management system in accordance with the requirements of the Company Law the Securities Law the Basic Norms for Enterprise Internal Control and other internal control regulatory rules oriented by risk management and operated it effectively. It strengthened and standardized its internal control which ensured the standardized operation of the Company and improved the management level and efficiency of the Company promoting the sustainable development of the Company and protecting the legitimate rights and interests of investors. 2. Particular case found involving material defects in the internal control during the reporting period □Yes √No XIII. Management and Control of the Subsidiaries during the Report Period During the report period by establishing an effective internal control mechanism and implementing the internal control management plan the internal operation supervision of subsidiaries was strengthened; by establishing a sound internal control system of subsidiaries the implementation and continuous improvement was promoted; by carrying out process monitoring and special evaluation the process risk management of subsidiaries was strengthened; by organizing the internal control publicity and training of subsidiaries a good internal control environment was created; by supervising the key businesses of subsidiaries the legal compliance reliability of financial reports asset safety and operation efficiency of subsidiaries was reasonable guaranteed.XIV. Internal Control assessment Report or Internal Control Audit Report. 1. Assessment Report of the Internal Control Disclosure date of full text of self- appraisal report of internal control April 282025 Disclosure index of full text of self- More details found in the "Report of Internal Control of CSG for year of appraisal report of internal control 2024" published on Juchao Website (www.cninfo.com.cn) The ratio of the total assets of the units included in the scope of evaluation to the total assets of the 93% Company's consolidated financial statements The ratio of the operating income of the units included in the scope of evaluation to the operating income of 95% the Company's consolidated financial statements Standards of Defects Evaluation Category Financial Reports Non-financial Reports Qualitative criteria Major defects: Major defects: 54CSGAnnual Report 2024 A. Fraud of directors supervisors A. Major decision-making mistakes and senior management; caused by decision-making process B. Ineffective control environment; of key business; C. Invalid internal supervision; B. Serious violation of state laws and D. Major internal control defects regulations; found and reported to the C. Serious brain drain of senior and management but haven't been middle management and or corrected after a reasonable time; personnel at key technological posts; E. Material misstatements are found D. Major or significant defects found by the external audit but haven't been in the internal control evaluation found in the process of internal have not been rectified and control; reformed; F. Financial reports submitted during E. The company's major negative the reporting period completely news frequently appears in the cannot meet the needs and are media; severely punished by regulatory Significant defects: agencies; A. Big deviation of execution caused G. Other major defects that may by executive routine of key business; affect the report users' correct B. Regulatory authorities impose judgment. large amounts of fines because of Significant defects: violations of laws and regulations; A. Defects or invalidation of C. Defects or invalidation of important financial control important business' internal control procedures; procedures; B. Significant misstatements are Common defects: Other control found by the external audit but defects except for major defects and haven't been found in the process of significant defects.internal control; C. Financial reports submitted during the reporting period have mistakes frequently; D. Other significant defects that may affect the report users' correct judgment.Common defects: Other control defects except for major defects and significant defects.Major defects: Major defects: A. Amount of net profit affected by A. Amount of direct property loss: misstatements (based on the direct loss amount is equal to or consolidated statements): the amount greater than 30 million yuan; affected by misstatements is equal to B. Group's reputation: major or greater than 3% of net profit and negative news spreads in numerous the absolute amount is no less than business areas or is widely reported 30 million yuan. by national media and causes B. Amount of assets and liabilities significant damages to the corporate affected by misstatements (based on reputation which takes more than six consolidated statements): amount months to be restored.Quantitative standard affected by misstatements is equal to Significant defects: or greater than 1% of total assets. A. Amount of direct property loss: Significant defects: the direct loss amount is equal to or A. Amount of net profit affected by greater than 20 million yuan but less misstatements (based on than 30 million yuan; consolidated statements): not belong B. Group's reputation: negative news to major defects and the amount spreads inside the industry or is affected by misstatements is equal to reported or focused by local media or greater than 2% of net profit and and causes certain damages to the the absolute amount is no less than corporate reputation which takes 20 million yuan. more than three months but less than B. Amount of assets and liabilities six months to be restored. 55CSGAnnual Report 2024 affected by misstatements (based on Common defects: consolidated statements): amount A. Amount of direct property loss: affected by misstatements is equal to defects except for major and or greater than 0.5% of total assets significant defects.but less than 1% of total assets. B. Group's reputation: negative news Common defects: Defects except spreads within the group and causes for major and significant defects. minor damages to the corporate reputation which takes less than three months to be restored.Amount of significant defects in financial reports 0 Amount of significant defects in non-financial reports 0 Amount of important defects in financial reports 0 Amount of important defects in non- financial reports 0 2. Audit report of internal control √ Applicable □ Not applicable Deliberations in Internal Control Audit Report According to Guidelines of Enterprise Internal Control Audit and the relevant requirements of CICPA auditing standards Grant Thornton Zhitong Certified Public Accountants LLP audited the effectiveness of internal control over financial statements of the Company up to 31 December 2024 issued GTCNSZ (2025) NO.441A015142 Internal Control Audit Report and made the following opinions: Grant Thornton Zhitong Certified Public Accountants LLP thought that CSG Holding Co. Ltd. maintained effective internal control over financial statements in all major aspects according to the Fundamental Norms of Enterprise Internal Control and relevant rules on December 31 2024 Disclosure of internal control audit report Disclosure Date of disclosing the internal control audit reports April 282025 More details can be found in the 2024 Internal Control Audit Disclosure index of internal control audit report Report of CSG released on Juchao Website (www.cninfo.com.cn) Type of the auditor's opinion Standard unqualified opinion Whether there are major flaws in the non- financial report or not No Whether the CPAs firm issued an Audit Report on Internal Control with non-standard opinion or not □Yes √ No Whether the Audit Report on Internal Control from the CPAs firm is in consistent with the Self-appraisal Report from the Board or not √ Yes □ No XV. Rectification of the Problems Found in the Self-inspection during the Special Campaign to Improve the Governance of Listed Companies Not Applicable 56CSGAnnual Report 2024 Section V. Environment and Social Responsibility I. Major environmental issues Whether the listed company and its subsidiaries belong to the key pollutant discharge units announced by the environmental protection department √ Yes □ No Environmental protection related policies and industry standards The Company implemented the Environmental Protection Law of the People's Republic of China the Law of the People's Republic of China on the Prevention and Control of Air Pollution the Law of the People's Republic of China on the Prevention and Control of Water Pollution the Law of the People's Republic of China on the Prevention and Control of Noise Pollution the Environmental Protection Tax Law of the People's Republic of China and other relevant environmental protection laws and regulations and implemented the Emission Standard of Air Pollutants for Glass Industry the Integrated Emission Standard of Air Pollutants the Sewage Integrated Emission Standards the Environmental Noise Emission Standards at the Boundary of Industrial Enterprises and other national industry and local pollutant discharge standards.Administrative license for environmental protection The construction projects of each subsidiary carried out environmental impact assessment work and obtain EIA approval in strict accordance with the requirements of the Environment Impact Assessment Law of the People's Republic of China and the Catalogue of Classified Management of Environmental Impact Assessment of Construction Projects. During the construction of the project the construction of pollution prevention and control facilities shall be carried out in strict accordance with the requirements of the project "Three Simultaneous" and put into production and use at the same time as the main project. During the trial production period the inspection and acceptance shall be organized in accordance with the relevant regulations on environmental protection acceptance of the completion of the construction project in order to ensure that the construction project completes the inspection and acceptance work before it is officially put into operation.All subsidiaries have obtained the pollutant discharge permit within the validity period and regularly submitted the implementation report of pollutant discharge permit.Industry emission standards and specific conditions of pollutant emission involved in production and operation activities Type of Name of main main Numb Exhaus Excessi Name of pollutants pollutants Way of Emissionconcentratio Approveder of t vent Emission standard of Total ve company or and and emissio total exhaus distribu n/ pollutants emission emissio subsidiary characteris characteris n emission t vent tion intensity n tic tic pollutants pollutants Xianning Air Particulate Contin Produc Emission Standard of 54 ≤30mg/m3 21.64t 93.251t/a N/A CSG Glass pollutants s uous/In tion Air Pollutants for 57CSGAnnual Report 2024 Co. Ltd. termitte plant Glass Industry SO2 nt area ≤200mg/m3 (GB26453-2022) 264.36t 636.51t/a NOx ≤400mg/m3 352.4t 1113.89t/a Particulate Emission Standard of ≤10mg/m3 s Air Pollutants for 8.17167t 60.96t/a Glass Industry Contin Produc Chengdu (GB26453-2022) Air uous/In tion CSG Glass SO2 43 ≤50mg/m3 and Emission 38.62672t 149.37t/a N/A pollutants termitte plant Co. Ltd. Standard of Air nt area Pollutants for Glass NOx ≤100mg/m3 Industry (DB51 80.19741t 896.15t/a 3164-2024) Particulate Ultra Low EmissionContin Produc Hebei CSG ≤10mg/m3s Standard of Air 10.37t 19.92t/a Air uous/In tion Glass Co. 19 Pollutants for Flat N/A pollutants SO2 termitte plantLtd. ≤50mg/m3 Glass Industry 30.32t 99.63t/a nt area NOx ≤200mg/m3 (DB13/2168-2020) 121.53t 398.55t/a Particulate Emission Standard of 15mg/m3 2.2664t 76.91t/a s Air Pollutants for SO2 50mg/m3 Glass Industry 36.31547t 238.28 t/a (GB26453-2022) Contin Produc Wujiang and Technical Air uous/In tion CSG Glass 39 Guidelines for N/A pollutants termitte plant Co. Ltd. Emergency Emission NOx nt area 200mg/m3 Reduction in Key 179.8262t 818.04 t/a Industries in Heavy Pollution Weather (2020 Revision) Dongguan Particulate Contin Produc ≤30mg/m3 Emission Standard of 5.038t 34.85t/a CSG Solar Air s uous/In tion Air Pollutants for 19 N/A Glass Co. pollutants SO2 termitte plant ≤200mg/m3 Glass Industry 106.28t 300.99t/a Ltd. NOx nt area ≤400mg/m3 (GB26453-2022) 197.405t 420.48t/a Particulate Contin Produc Emission Standard of Hebei Panel ≤30mg/m3 0.308031t 16.4225t/a Air s uous/In tion Air Pollutants for Glass Co. 9 N/A pollutants SO2 termitte plant ≤200mg/m3 Glass Industry 2.857653t 87.7t/a Ltd.NOx nt area ≤400mg/m3 (GB26453-2022) 7.210209t 105.1t/a pH 6~9 Guangdong Province / / Yichang Water Intermi Sewag CSG Display COD 1 ≤500mg/L Water Pollutant 17.272t 89.405t/a N/A pollutants ttent e vent Emission Limit Co. Ltd.Fluoride ≤10mg/L (DB44/26-2001) 0.483t 1.071t/a Xianning Particulate Contin Produc ≤30mg/m3 Emission Standard of 1.76t 17.656t/a CSG s Air uous/In tion Air Pollutants for Photoelectric pollutants SO2 8 N/A termitte plant ≤200mg/m3 Glass Industry 0.18t 65.6t/a Glass Co.NOx nt area ≤400mg/m3 (GB26453-2022)Ltd. 54.7t 163.81t/a Dongguan pH 6~9 Guangdong Province / / CSG Water Intermi Sewag Water Pollutant Architectural COD 1 90mg/L 0.285t 5.4t/a N/A pollutants ttent e vent Emission Limit Glass Co. Ammonia 10mg/L (DB44/26-2001)Ltd. 0.002275t 0.6t/anitrogen Tianjin CSG pH 6~9 Sewage Integrated / / Energy- Water Intermi Sewag Emission Standards Saving Glass pollutants COD 2 ttent e vent ≤500mg/L N/A (Level 3 Standard 10.844225t 59.861t/a Co. Ltd. Ammonia ≤45mg/L DB12/356-2018) 1.984783t 5.377t/a 58CSGAnnual Report 2024 nitrogen Wujiang pH 6~9 / / CSG East China Water COD ≤500mg/L Sewage Integrated Intermi Sewag 9.73t 40.592t/a 1 Emission Standards N/A Architectural pollutants ttent e vent Glass Co. Ammonia (GB8978-1996) ≤45mg/L 1.03t 1.0444t/a Ltd. nitrogen Particulate Anhui CSG 10mg/m3 Anhui Province 8.578t 61.41t/as Contin Produc New Energy Emission Standard of Air uous/In tion Material SO2 54 100mg/m3 Air Pollutants for 417.684t 1051.2t/a N/A pollutants termitte plant Technology Glass Industry Co. Ltd. NOx nt area 200mg/m3 (DB344295-2022) 522.161t 1051.2t/a Guangdong Province Water Pollutant COD ≤70mg/L 0t 2.44t/a N/A Emission Limit Water (DB44/26-2001) pollutants Sewag Pollutant Emission e Standard for Battery Dongguan NOx ≤30mg/m3 0t 33.15t/a N/A Intermi vent/Pr Industry (GB30484- CSG PV-tech 20 ttent oductio 2013) Co. Ltd.n plant VOC Emission area Standard for Air Furniture VOCS ≤30mg/m3 0t 1.93t/a N/A pollutants Manufacturing Industry (DB44/814- 2010) Water COD Sewag ≤200mg/L 5.749t 89.2584t/aEmission Standards Yichang pollutants e CSG pH of Pollutants for Intermi vent/Pr 6~9 / / 9 Inorganic Chemical N/A Polysilicon NOx ttent oductio ≤240mg/m3 Industry (GB31573- 0.00446t / Co. Ltd. Air n plant pollutants Particulate 2015)area ≤120mg/m3 0.38t / s Treatment of pollutants All subsidiaries have built pollution prevention and control facilities in accordance with the environmental impact assessment documents of construction projects and relevant specifications and adopted air pollution control process such as electrostatic precipitator + SCR denitrification + semi-dry desulfurization + bag dust removal ceramic filter cartridge desulfurization denitrification and dust removal integration bag dust removal and water treatment process such as neutralization + precipitation fluidized bed and biological oxidation for which the technologies used were all in line with the requirements of the "Guidelines for Feasible Technologies for Pollution Prevention and Control in Glass Manufacturing Industry" and other documents. In 2024 the pollution control facilities were in good operation and the pollutants were discharged stably up to the standard. The air pollutant emission concentrations of most of the subsidiaries were lower than 50% of the emission standard and enjoyed the preferential policy of halving environmental tax. The pollutant emissions of many subsidiaries reached and implemented local ultra-low emission standards.Emergency response plan system of environment incident In accordance with the national requirements all subsidiaries prepared environmental emergency response plans organized expert evaluation and filed with the local environmental protection department as required and conducted 59CSGAnnual Report 2024 the emergency drill against environmental emergency as planned. No major environmental emergency occurred in 2024. Environmental self-monitoring scheme The subsidiaries have built and operated on-line monitoring devices for waste water and exhaust gas in accordance with national laws and regulations environmental impact assessment documents of construction projects and the requirements of their replies regularly carried out comparison and review of the effectiveness of on-line monitoring facilities and entrusted a third-party unit to carry out manual environmental monitoring to comprehensively monitor the pollutant discharge. The monitoring frequency is implemented in accordance with relevant monitoring technical guidelines or pollutant discharge permits.Investment in environmental governance and protection and payment of environmental protection tax All subsidiaries have built pollution control facilities in accordance with the requirements of environmental impact assessment and maintained the stable operation of these facilities to ensure their simultaneous operation with production equipment. Considerable energy and funds are invested in pollution control every year to ensure the stable discharge of pollutants up to the standard and reduce pollution emission as much as possible. Many subsidiaries have reached ultra-low emission standards. All subsidiaries have made regular emission declarations and paid environmental taxes to the local tax authorities in full and on time in accordance with the requirements of the Environmental Protection Tax Law.Measures taken to reduce carbon emissions during the report period and their effects √ Applicable □Not applicable The Company has continuously strengthened the comprehensive utilization and management of resources and energy actively fulfilled the corporate social responsibility taken various measures to save energy and reduce carbon emissions making our own contributions to the national goal of "Carbon Peaking" and "Carbon Neutrality". The Group has specially established an energy management team which was responsible for supervising the energy consumption management of various subsidiaries and promoted the energy consumption per unit product and carbon emission per unit product of the Group's various products to reach the advanced level in the industry. At present the energy consumption level of most glass melting furnaces in the flat glass business of CSG has reached the advanced level stipulated by the national standard. At the same time CSG has always paid attention to the utilization of waste heat in flat glass factories. Its first waste heat power plant was put into operation as early as 2009 and each production base has built waste heat boilers and waste heat power stations; CSG has been actively developing photovoltaic power plants since 2012 most of which have photovoltaic power stations on the roofs of factories. In 2024 CSG's waste heat power generation and photovoltaic power generation totalled about 586 million kWh equivalent to reducing carbon dioxide emissions by more than 334000 tons.Administrative penalties caused by environmental protection issues during the report period Nil Other environmental information that should be disclosed Nil Other relevant environmental protection information 60CSGAnnual Report 2024 Nil Environmental incidents in the listed company In 2024 no environmental incidents occurred.II. Social responsibility The 2024 Annual Social Responsibilities Report of CSG is the 17th social responsibility report released by the Company consecutively. Focusing on the year of 2024 the report systemically described the concrete actions of the Company to actively perform its social responsibilities and its efforts to implement the "Scientific Development Perspective" build up a harmonious society and advance the sustainable development of the economy and society.See the full report on www.cninfo.com.cn.III. Consolidate and expand the achievements of poverty alleviation and rural revitalization During the report period the Company and its subsidiaries actively carried out social welfare and poverty alleviation activities. For details see the 2024 Annual Social Responsibilities Report of CSG disclosed on www.cninfo.com.cn. 61CSGAnnual Report 2024 Section VI. Important Events I. Implementation of commitment 1. Commitments completed by the actual controllers the shareholders the related parties the purchasers the Company or the other related parties during the report period and those that hadn't been completed execution by the end of the report period √ Applicable □ Not applicable Type of Commitmen Commitment Implementati Commitments Promisee Content of commitments commitments t date term on Commitments for Not Applicable Share Merger Reform Foresea Life Insurance Co. Ltd.Shenzhen Jushenghua Co. Ltd. By the end issued a detailed report of equity of the report Commitment period thechange on 29 June 2015 in which During the Foresea Life of horizontal above they undertook to keep independent period when Commitments in report Insurance Co. competition shareholders from CSG in aspects of personnel Foresea Life of the of acquisition or equity Ltd Shenzhen affiliate assets finance organization set-up 2015-6-29 remains the Company change Jushenghua Co. Transaction and business as long as Foresea largest had strictly Ltd. and Life Insurance remained the largest shareholder of carried out capital their shareholder of CSG. Meanwhile the Company occupation promises.they made commitment on regularizing related transaction and avoiding industry competition.Commitments in assets Not Applicable reorganization Commitments in initial public offering or re- Not Applicable financing Equity incentive Not Applicable commitment Other commitments for medium and small Not Applicable shareholders Other commitments Not Applicable Completed on time Yes (Yes/No) If the commitments is not fulfilled on time Not applicable explain the reasons and the next work plan.Note: Shenzhen Jushenghua Co. Ltd. transferred its 86633447 unrestricted tradable A shares of CSG Group to its wholly-owned sub-subsidiary Zhongshan Runtian Investment Co. Ltd. through agreement transfer on March 16 2020. Zhongshan Runtian Investment Co. Ltd. is obliged to continue to fulfill the commitments made by Shenzhen Jushenghua Co. Ltd. As of the end of the report period the above-mentioned shareholders had strictly fulfilled the relevant commitments. 62CSGAnnual Report 2024 2. If there are assets or projects of the Company which has profit forecast and the report period is still in the forecasting period the Company should explain the reasons why they reach the original profit forecast.□ Applicable √ Not applicable II. Particulars about non-operating fund of listed company which is occupied by controlling shareholder and its affiliated enterprises □ Applicable √ Not applicable III. Illegal external guarantee □ Applicable √ Not applicable The Company had no illegal external guarantee during the report period.IV. Explanation from the Board of Directors for the latest "Non-standard audit report" □ Applicable √ Not applicable V. Explanation from Board of Directors Supervisory Committee and Independent Directors (if applicable) for "Non-standard audit report" of the period that issued by CPA □ Applicable √ Not applicable VI. Explanation of changes in accounting policies accounting estimates or correction of significant accounting errors compared with the financial report of the previous year √ Applicable □ Not applicable The content and reason of accounting policy change Approval procedures The Ministry of Finance issued the Interpretation No. 17 of Accounting Standards for Business Enterprises (Financial Accounting [2023] No. 21) on October 25 2023 (hereinafter referred to as "Interpretation No. 17") which was On August 22 2024 the Board of Directors of effective from 1 January 2024. The Company has adopted Interpretation No. the Company reviewed and passed the Proposal 17 from January 1 2024. The adoption of Interpretation No. 17 had no on Accounting Policy Changes. significant impact on the financial statements of the Company in the report period.The Ministry of Finance issued the Interpretation No. 18 of Accounting Standards for Business Enterprises (Financial Accounting [2024] No. 24) onDecember 6 2024 (hereinafter referred to as "Interpretation No. 18”).According to Interpretation No. 18 when accounting for the estimated liabilities arising from quality assurance that is not a single performance obligation the enterprise should in accordance with the relevant provisions of Accounting Standard No. 13 for Business Enterprises - Contingencies debit the On April 24 2025 the Board of Directors of the "Cost of Main Business" and "Cost of Other Business" accounts and credit the Company reviewed and passed the Proposal on "Estimated Liabilities" account according to the determined estimated liability Accounting Policy Changes.amount and list them in the "Operating Costs" in the income statement and the "Other Current Liabilities" "Non-current Liabilities Due within One Year" "Estimated Liabilities" and other items in the balance sheet.The Company has adopted the said provisions from the date of issuance of Interpretation No. 18 and made retrospective adjustments. 63CSGAnnual Report 2024 VII. Description of changes in consolidation statement's scope compared with the financial report of the previous year √ Applicable □Not applicable Please refer to "1. Changes in the scope of consolidation due to other reasons" under Note "IX. Changes in the scope of consolidation" to "Section X. Financial Report".VIII. Engaging and dismissing of CPA firm CPA firm engaged Name of domestic CPA firm Grant Thornton Zhitong Certified Public Accountants LLP Remuneration for domestic CPA firm (RMB 0000) 270 Continuous life of auditing service for domestic CPA firm 2 Name of domestic CPA Yang Hua Deng Jinchao Continuous life of auditing service for domestic CPA Yang Hua (2 years) Deng Jinchao (1 year) Name of overseas CPA firm (if any) N/A Continuous life of auditing service for overseas CPA firm (if any) 0 Name of overseas CPA (if any) N/A Continuous life of auditing service for overseas CPA (if any) N/A Name of domestic CPA firm N/A Whether changed accounting firms in this period or not □ Yes √ No Appointment of internal control auditing accounting firm financial consultant or sponsor √ Applicable □ Not applicable Grant Thornton Zhitong Certified Public Accountants LLP was engaged as audit institute of internal control for the Company in the report period and contracted charges was RMB 0.30 million (cost of business trips and accommodation at its own expense).IX. Delisting after the disclosure of the annual report □ Applicable √ Not applicable X. Issues related to bankruptcy and reorganization □ Applicable √ Not applicable There were no bankruptcy or restructuring related matters during the reporting period of the company.XI. Significant lawsuits and arbitrations √ Applicable □ Not applicable Amount Recognise involved d as Judgement Date ofBasic information Progress Result and impact Index of disclosure (RMB estimated execution disclosure 0000) liabilities 64CSGAnnual Report 2024 or not Announcements on Company Involved in 1 October Lawsuits on 2022 http://www.cninfo.com.cn (Announcement No.: 2022- 056) Plaintiff: Zhongshan Announcement on the Runtian Investment The first instance Progress of Companies Co. Ltd. judgment rejected 12 August Involving Litigation on Defendant: CSG the lawsuit request 2023 http://www.cninfo.com.cn Holding Co. Ltd. of the plaintiff (Announcement No.: 2023- Case overview: The Zhongshan Runtian Not 026) plaintiff filed a 0 No Closed case Investment Co. Ltd. applicable lawsuit with the The second instance Announcement on the court to confirm the judgment rejected Progress of Companies resolutions of the the appeal and 25 August Involving Litigation on General Meeting of upheld the original 2023 http://www.cninfo.com.cn Shareholders as judgment. (Announcement No.: 2023- invalid. 027) Announcement on the Progress of Companies 12 December Involving Litigation on 2024 http://www.cninfo.com.cn (Announcement No.: 2024- 027) XII. Penalty and rectification □ Applicable √ Not applicable There were no penalties or rectifications during the report period of the Company.XIII. Integrity of the Company and its controlling shareholders and actual controllers √ Applicable □ Not applicable The Company has no controlling shareholder and actual controller. According to the disclosure requirements the Company's largest shareholder Foresea Life Insurance Co. Ltd. shareholder Zhongshan Runtian Investment Co.Ltd. and shareholder Shenzhen Guanlong Logistics Co. Ltd. shall disclose the corresponding information. The details are as follows: i Integrity of the Company During the report period it did not exist that the Company failed to perform the effective judgment of the court or owed a comparatively large amount of debt which was overdue. The company's integrity was good.ii. The integrity of the Company's shareholders The Company in accordance with relevant regulations sent the Letter on Matters Concerning Assistance in Providing Materials Required for the 2024 Annual Report to its largest shareholder Foresea Life Insurance Co. Ltd.shareholder Zhongshan Runtian Investment Co. Ltd. and shareholder Shenzhen Guanlong Logistics Co. Ltd. by email on February 6 2025. These shareholders were asked to provide their own integrity status during the report period including but not limited to: whether they failed to perform any effective judgment of the court or owed any comparatively large amount of debt which was overdue etc. Their replies are as follows: 65CSGAnnual Report 2024 1. Reply from the Company's largest shareholder Foresea Life Insurance Co. Ltd.: As of December 31 2024 it did not exist that Foresea Life Insurance Co. Ltd. failed to perform the effective judgment of the court or owed a comparatively large amount of debt which was overdue. 2. As of the date of disclosure of this Report the Company has not received any replies from shareholders Zhongshan Runtian Investment Co. Ltd. and Shenzhen Guanlong Logistics Co. Ltd. regarding "the integrity of your company and the actual controller during the report period". Therefore the Company is unable to update the integrity status of the aforesaid shareholders and their actual controller Mr. Yao Zhenhua. The Company has disclosed the integrity status of shareholders Zhongshan Runtian and Guanlong Logistics and their actual controller Mr. Yao Zhenhua in "XIII. Integrity of the Company and its controlling shareholders and actual controllers" under "Section VI. Important Events" of the 2023 Annual Report with details as follows: "ii. The integrity of the Company's shareholders According to the reply of the shareholder Zhongshan Runtian Investment Co. Ltd. the original content is as follows: As of December 31 2023 the cases executed by Zhongshan Runtian Investment Co. Ltd. (hereinafter referred to as "Zhongshan Runtian") are as follows: (1) Due to the case of execution of notarising creditor's rights documents between Great Wall Guoxing Financial Leasing Co. Ltd. and 16 companies including Shenzhen Shum Yip Logistics Group Co. Ltd. Shenzhen Baoneng Investment Group Co. Ltd. Baoneng Real Estate Co. Ltd. and Zhongshan Runtian Investment Co. Ltd. Great Wall Guoxing Financial Leasing Co. Ltd. applied to the court for compulsory execution. As the guarantor of the debt of RMB 164 million Zhongshan Runtian was jointly and severally liable for the debt and its 5.57 million shares of Jonjee High-tech were used as collateral. According to the Announcement on the Results of Judicial Disposal of Certain Shares of Shareholder Holding More Than 5% of the Shares disclosed by the Board of Directors of Jonjee High-tech on December 18 2023 Great Wall Guoxing Financial Leasing Co. Ltd. applied for compulsory execution. 5.57 million shares in Jonjee High-tech have been disposed of with a disposal amount of RMB 160422600 and a debt joint and several liability fulfilment amount of RMB 160422600. (2) Due to the case of notarising creditor's rights documents between Chongqing Xinyu Financial Leasing Co. Ltd. and the defendants Shenzhen Baoneng Investment Group Co. Ltd. Shenzhen Baoneng Automobile Co. Ltd. and Zhongshan Runtian Chongqing Xinyu Financial Leasing Co. Ltd. applied to the court for compulsory execution. As the guarantor of the debt of RMB260 million Zhongshan Runtian used its 67.65 million A shares of CSG as collateral. As of June 29 2022 it has disposed of 55628900 A shares of CSG with a total amount of RMB 319999300.00. At present the court has transferred RMB 301717392.44 to the creditor and Zhongshan Runtian's guarantee liability has been enforced. (3) Due to the case of notarising creditor's rights documents between Guangdong Finance Trust Co. Ltd. and Zhongshan Runtian Shenzhen Jushenghua Co. Ltd. Shenzhen Baoneng Investment Group Co. Ltd. Baoneng Holdings (China) Co. Ltd. and Mr. Yao Zhenhua Finance Trust applied to the court for compulsory execution. The 26550000 shares of Jonjee High-tech held by Zhongshan Runtian Investment Co. Ltd. have been sold on September 13 2022 and the amount credited into the account was RMB 793755369.22 which was approximately RMB 90 million different from the debt amount of RMB 882199570.79 submitted to the court by the execution applicant. As a result the case remained unsettled. (4) Due to the dispute over the financial loan contract between AVIC Trust Co. Ltd. and Zhongshan Runtian Zhongshan Runtian as the borrower of the debt principal of RMB 1.05 billion and Hefei Baohui Real Estate Co.Ltd. Hefei Baoneng Real Estate Development Co. Ltd. Shenzhen Jushenghua Co. Ltd. Shenzhen Shum Yip Logistics Group Co. Ltd. Shenzhen Baoneng Investment Group Co. Ltd. Chia Tai (Shenzhen) Development Co.Ltd. and Mr. Yao Zhenhua were jointly and severally liable for the debt. As of December 31 2023 it has disposed a total of 11156871 shares of Jonjee High-tech; among them the first round of freezing of 2125605 shares by AVIC 66CSGAnnual Report 2024 Trust Co. Ltd. and the judicial mark of 8056410 shares. (5) Due to the case of execution of notarising creditor's rights documents between Chongqing International Trust Co. Ltd. and Shenzhen Jushenghua Co. Ltd. Zhongshan Runtian Shenzhen Baoneng Investment Group Co. Ltd. and Mr.Yao Zhenhua the court ruled to seal up and freeze the property of RMB 541 million of Jushenghua Baoneng Group and Yao Zhenhua and to freeze the 22 million shares of Jonjee High-tech pledged by Zhongshan Runtian to Chongqing Trust. At present Chongqing Trust has applied for compulsory execution. As of February 2 2023 it has disposed of 21025100 shares of Jonjee High-tech with a total amount of RMB 617383579.06. (6) Due to the case of the loan contract dispute between Zhongshan Runtian and Shanghai Pudong Development Bank Co. Ltd. the People's Court of Futian District Shenzhen has issued an Execution Ruling ruling that 12 million shares held by Zhongshan Runtian in "Jonjee High-tech" the entity subject to enforcement shall be auctioned off and realised for the purpose of settling the debt. As the bidder failed to pay the final payment within the prescribed time according to the Notification of Sale from the People's Court of Futian District Shenzhen issued on February 16 2023 the aforesaid 12 million shares would be re-auctioned. On March 22 2023 Shanghai Pudong Development Bank Co. Ltd. disposed of the 12 million shares held by Zhongshan Runtian in "Jonjee High-tech" by way of a judicial auction. The 12 million shares have been disposed of for RMB 405684000.Notice of auction was received on December 12 2023: the Futian Court intended to judicially auction 9 million unrestricted public shares of Jonjee High-tech held by Zhongshan Runtian on the Judicial Auction Online Platform from 10:00 a.m. on January 16 2024 to 10:00 a.m. on January 17 2024 (except for the extension of the time) which has been suspended due to the supplemental security. (7) Due to the case of the loan contract dispute between Zhongshan Runtian and Chongqing Trust Inc. Shenzhen Intermediate People's Court has issued an execution notification demanding the disposal of 22 million shares held by Zhongshan Runtian in "Jonjee High-tech" at a realised price. On January 17 2023 Chongqing Trust disposed of a total of 5.7 million shares held by Zhongshan Runtian by way of block trading. (8) Due to the case of the loan contract dispute between Zhongshan Runtian and Bank of Communications Financial Leasing Co. Ltd. the Intermediate People's Court of Zhongshan City Guangdong Province has issued an execution ruling to auction off 8329457 shares held by Zhongshan Runtian in "Jonjee High-tech". On 11 May 2023 Bank of Communications Financial Leasing Co. Ltd. disposed of the 8329457 shares held by Zhongshan Runtian in "Jonjee High-tech" by way of a judicial auction. The auction proceeds of RMB 284.27 million which has been used up to pay off RMB 202451688.15 in this case RMB 269851.69 in execution fees and RMB 50000 in auxiliary auction fees. (9) Due to the case of the loan contract dispute between Zhongshan Runtian and Bohai Trust the Intermediate People's Court of Zhongshan City Guangdong Province has issued an Execution Ruling ruling the mandatory realisation of 13.7 million shares held by the entity subject to enforcement Zhongshan Runtian in "Jonjee High-tech".As of June 6 2023 all 13.7 million shares had been disposed of. The court has disbursed a total of RMB 458173319.95 to Bohai Trust with approximately RMB 10 million outstanding. Bohai Trust has initiated separate legal proceedings at the Shenzhen Court of International Arbitration to recover the outstanding balance and realise the collateral and the pledge guarantee amounts to RMB 35504500. Currently the case is awaiting a court hearing. (10) Due to the case of the transfer and buy-back contract dispute between Zhongshan Runtian and Shenzhen Qianhai Dongfang Venture the Intermediate People's Court of Shenzhen Municipality has issued an Execution Ruling ruling that the property of the entities subject to enforcement including Shenzhen Hualitong Zhongshan Runtian Baoneng Investment and Jushenghua should be seized frozen sequestered withheld withdrawn or allocated to the extent of a total amount of RMB 623102565.76 (including RMB 43513 215.76 of Zhongshan Runtian Investment Co. Ltd.) as well as interest on the debt during the period of delayed performance costs of enforcement applications and actual expenses incurred during the enforcement. 67CSGAnnual Report 2024 (11) Due to the case of the financial loan contract dispute between Bank of Tibet and Lhasa Baochuang and Zhongshan Runtian the total enforcement amount stands at RMB 828970067.74 with RMB 821439159.19 already enforced. In August 2023 the court issued a Reinstatement of Execution Ruling which ruled to withhold and freeze the bank deposits of the entities subject to enforcement in the sum of RMB 50943534.03 a total enforcement fee of RMB 118343.53 as well as interest interest on the debt during the period of delayed performance and case acceptance fee. (12) Due to the case of the loan contract dispute between Shenzhen Baotai Honghua and Zhongshan Runtian Hualitong and Shenzhen Jixiang Service Shenzhen Baotai Honghua applied for enforcement of RMB 1205000000 and interest. In another case asset disposal resulted in the distribution of disposal proceeds of RMB 356272071.65. (13) Due to the case of the equity pledge dispute between Essence Securities and Zhongshan Runtian the amount of the litigation is RMB 352912928.76. The Intermediate People's Court of Nanchang City has issued a first-instance judgement which ruled to reject the litigation request of Essence Securities. In September 2023 Essence Securities filed another lawsuit with the Futian court in Shenzhen seeking payment from Zhongshan Runtian for financing funds and interest. The claim in this case amounts to RMB 128 million. The case is currently undergoing first- instance proceedings. (14) Due to the three cases of claim transaction disputes between Guangdong Huaxing Bank Co. Ltd. and Jushenghua Shum Yip Logistics Baoneng Investment Hualitong and Zhongshan Runtian judgements have been rendered in the first instance. In Case No. (2022) Y. 0303 M.C. 19249 Zhongshan Runtian is held jointly and severally liable for settling the principal of RMB 150000000 and associated interest. In Case No. (2022) Y. 0303 M.C. 19248 Zhongshan Runtian bears the joint and several liability for settling the principal of RMB 300000000 and interest of RMB 22500000 on the bonds in question. In Case No. (2022) Y. 0303 M.C. 19250 Zhongshan Runtian is jointly and severally liable for settling the principal of RMB 200000000 and associated interest on the bonds in question. All these cases are currently in the second instance. (15) Due to the case of the finance lease contract dispute between Science City (GZ) Financial Leasing Co. Ltd. and Kunshan JuTron New Energy Technology Co. Ltd. Baoneng Investment Jushenghua Baoneng Urban Development Taiyuan Baoju Real Estate Qianhai Huabao Supply Chain Zhongshan Runtian and Ping An Securities Zhongshan Runtian acts as a guarantor for the debt of RMB 120 million. The first-instance judgement has yet to be rendered. (16) Due to the case of the corporate bond trading dispute between Guangdong Huaxing Bank Co. Ltd. and Shum Yip Logistics Jushenghua Baoneng New Energy Automobile Shenzhen Baoneng Automobile Yao Zhenhua Baoneng Investment Hualitong and Zhongshan Runtian Zhongshan Runtian acts as a guarantor for the debt of RMB 450 million. The case is still at the stage of the first instance. (17) Due to the two cases of finance lease contract disputes between Science City (GZ) Financial Leasing Co. Ltd. and Qoros Automotive Baoneng Investment Jushenghua Baoneng Urban Development Yao Zhenhua Taiyuan Baoju Real Estate Chongqing Baoneng Supply Chain Guangzhou Baoneng Culture Entertainment Qianhai Huabao Supply Chain Zhongshan Runtian and Ping An Securities the total claim amount is RMB 186 million and Zhongshan Runtian acts as the guarantor in the cases. The cases are currently in the first-instance stage. (18) Due to the case of the finance lease contract dispute between Science City (GZ) Financial Leasing Co. Ltd. and Shenzhen Baoneng Automobile Baoneng Investment Jushenghua Baoneng Urban Development Yao Zhenhua Taiyuan Baoju Real Estate Guangzhou Baoneng Culture Entertainment Qianhai Huabao Supply Chain Zhongshan Runtian and Ping An Securities Zhongshan Runtian acts as a guarantor for the debt of RMB 210 million. The case is currently in the first-instance stage. (19) Due to the case of the finance lease contract dispute between Science City (GZ) Financial Leasing Co. Ltd. and Shenzhen Hua'ai Industrial Development Baoneng Investment Jushenghua Baoneng Urban Development Yao Zhenhua Taiyuan Baoju Real Estate Guangzhou Baoneng Culture Entertainment Qianhai Huabao Supply Chain 68CSGAnnual Report 2024 Zhongshan Runtian and Ping An Securities Zhongshan Runtian acts as a guarantor for the debt of RMB 20.33 million. The case is currently in the first-instance stage. (20) Due to the case of the finance lease contract dispute between Science City (GZ) Financial Leasing Co. Ltd. and Baoneng Automotive Research and Development Baoneng Investment Jushenghua Baoneng Urban Development Yao Zhenhua Taiyuan Baoju Real Estate Guangzhou Baoneng Culture Entertainment Qianhai Huabao Supply Chain Zhongshan Runtian and Ping An Securities Zhongshan Runtian acts as a guarantor for the debt of RMB 22.38 million. The case is currently in the first-instance stage. (21) Due to the two cases of finance lease contract disputes between Science City (GZ) Financial Leasing Co. Ltd. and Shenzhen Baoneng Automobile Qoros Automotive Baoneng Investment Jushenghua Baoneng Urban Development Zhongshan Runtian Yao Zhenhua Tengchong Beihai Wetland Guangzhou Baoneng Culture Entertainment Qianhai Huabao Supply Chain and Chuangbang Group the total claim amount is RMB 142 million and Zhongshan Runtian acts as the guarantor. The two cases are currently in the first-instance stage. (22) Due to the case of the finance lease contract dispute between Shandong Tongda Financial Leasing Co. Ltd. and Shenzhen Baoneng Automobile Baoneng Investment Zhongshan Runtian Wuhu Baoneng Real Estate Shenzhen Xinchang Enterprise Management Co. Ltd. and Chuangbang Group Zhongshan Runtian acts as a guarantor for the debt of RMB 260 million. The case is currently in the first-instance stage. (23) Due to the case of the finance lease contract dispute between Shandong Tongda Financial Leasing Co. Ltd. and Shum Yip Logistics Baoneng Investment Baoneng Real Estate Zhongshan Runtian Wuhu Baoneng Real Estate and Shenzhen Hualitong Zhongshan Runtian acts as a guarantor for the debt of RMB 160 million. The case is currently in the first-instance stage. (24) Due to the two cases of finance lease contract disputes between Science City (GZ) Financial Leasing Co. Ltd. and Shenzhen Hua'ai Industrial Development Yao Zhenhua Guangzhou Baoneng Culture Entertainment Qianhai Huabao Supply Chain Zhongshan Runtian and Jushenghua the total claim amount is RMB 122 million and Zhongshan Runtian acts as the guarantor. The two cases are currently in the first-instance stage.As of December 31 2023 the details of Zhongshan Runtian's comparatively large amount of debt which was overdue are as follows: Serial Borrower Financial Loan amount Credit Start date Maturitynumber institution (RMB 0000) enhancement plan of loan date of loan Zhongshan Runtian 1 Investment Co. EssenceSecurities 4239.28 Guarantee + Pledge 2018/12/27 2021/12/26Ltd. Zhongshan Runtian 2 Investment Co. AVIC Trust 105000.00 Guarantee + Pledge 2019/9/25 2021/10/31 Ltd.Total 109239.28 Note: As of October 31 2023 related stocks held by Zhongshan Runtian had been liquidated by AVIC Trust through various channels. However since it is not the first pledgee the proceeds from liquidation must be retained for withdrawal by the first pledgee Essence Securities. AVIC Trust has withdrawn only part of the funds so far. Due to the large number of issues and quantities of trust products the Company is still negotiating with AVIC Trust on the deduction method for principal and interest and no solution has been finalised. Therefore the outstanding loan cannot be adjusted for now. Once a solution is finalised further disclosure will be made.As of December 31 2023 Mr. Yao Zhenhua's personal execution cases are as follows: (1) Due to the case of dispute over notarising creditor's rights documents between Ping An Trust Co. Ltd. and Shaoxing Baorui Real Estate Co. Ltd. Baoneng City Co. Ltd. Shenzhen Baoneng Investment Group Co. Ltd. 69CSGAnnual Report 2024 Baoneng Real Estate Co. Ltd. Shanghai Kaiyue Investment Co. Ltd. and Mr. Yao Zhenhua which was applied for compulsory execution by Ping An Trust Mr. Yao Zhenhua was jointly and severally liable for the principal and interest of the debt of RMB 420 million. (2) Due to the trust loan dispute between the National Trust and Shenzhen Xinao Trading Co. Ltd. Shenzhen Baoneng Investment Group Co. Ltd. Mr. Yao Zhenhua and others signed relevant guarantee contracts ordering Shenzhen Xinao Trading Co. Ltd. to repay the loan principal of RMB 290 million and related interest and lawsuit costs. Shenzhen Baoneng Investment Group Co. Ltd. Mr. Yao Zhenhua and others were jointly and severally liable for the debt. (3) Due to the financial borrowing between Zhongrong International Trust Co. Ltd. and Baoneng Automobile Co. Ltd. it applied to the Beijing Third Intermediate People's Court for compulsory execution for notarisation on the matter. Since Mr. Yao Zhenhua provided a guarantee for this loan business and signed the relevant notarised documents he was jointly and severally liable for the debt of RMB 1048 million. (4) As Kunlun Trust Co. Ltd. applied to the court for compulsory execution of the notarising creditor's rights documents with Shum Yip Logistics Group Co. Ltd. Baoneng Century Co. Ltd. Chia Tai (Shenzhen) Development Co. Ltd. Shenzhen Baoneng Investment Group Co. Ltd. Baoneng Holdings (China) Co. Ltd. and Mr. Yao Zhenhua Mr. Yao Zhenhua assumed joint and several guarantee liabilities for the debt of RMB 1.31 billion. (5) Due to the case of notarising creditor's rights documents between Guangzhou Xinhua City Development Industry Investment Enterprise (Limited Partnership) and the defendants Shenzhen Baoneng Investment Group Co. Ltd.Shenzhen Jushenghua Co. Ltd. and Mr. Yao Zhenhua Mr. Yao Zhenhua as the guarantor signed the relevant notarial documents and assumed joint and several liabilities for the principal and interest of the creditor's rights of RMB 600 million. (6) Due to the dispute over the loan contract between Fuzhou Branch of Xiamen International Bank Co. Ltd. and Shenzhen Jushenghua Co. Ltd. Fuzhou Branch of Xiamen International Bank Co. Ltd. applied to Shenzhen Intermediate People's Court for compulsory execution. Mr. Yao Zhenhua as the guarantor of the loan principal of RMB 2.16 billion signed the corresponding Guarantee Contract and assumed joint and several liabilities for the debt. (7) Due to the financial loan dispute between Guangdong Finance Trust Co. Ltd. and Zhongshan Runtian Guangdong Finance Trust Co. Ltd. applied to Shenzhen Intermediate People's Court for compulsory execution. Mr.Yao Zhenhua as the guarantor of the loan signed the corresponding Guarantee Contract and was jointly and severally liable for the debt of RMB 720 million. The 26550000 shares of Jonjee High-tech held by Zhongshan Runtian Investment Co. Ltd. have been realised on September 13 2022 with a received amount of RMB 793755369.22 which is about RMB 90 million different from the owed amount of RMB 882199570.79 submitted to the court by the applicant for execution. Therefore the case has not been settled for the time being. (8) Due to the financial debt dispute between China Railway Trust Co. Ltd. and Baoneng Automobile Group Co. Ltd. and Kunming Baojun Real Estate Co. Ltd. it applied to Chengdu Intermediate People's Court of Sichuan Province for compulsory execution. As the guarantor of the debt Mr. Yao Zhenhua signed the corresponding Guarantee Contract and was jointly and severally liable for the debt of RMB 2095 million. A settlement agreement has been signed in this case. (9) Due to the financial debt dispute between China Railway Trust Co. Ltd. and Baoneng Automobile Group Co. Ltd. and Kunming Jianpeng Real Estate Development Co. Ltd. it applied to Chengdu Intermediate People's Court of Sichuan Province for compulsory execution. Mr. Yao Zhenhua as the guarantor of the debt signed the corresponding Guarantee Contract and was jointly and severally liable for the debt of RMB 836 million. A settlement agreement has been signed in this case and the execution has been terminated. (10) Due to the case of notarising creditor's rights documents between Changan International Trust Co. Ltd. and Shenzhen Baoneng Investment Group Co. Ltd. Wuxi Baoneng Real Estate Co. Ltd. Baoneng Holdings (China) Co. 70CSGAnnual Report 2024 Ltd. Shenzhen Jushenghua Co. Ltd. and Mr. Yao Zhenhua Changan Trust applied for compulsory execution. Mr.Yao Zhenhua as the guarantor of the debt was jointly and severally liable for the debt of RMB 925 million. (11) Due to the case of notarising creditor's rights documents between Changan International Trust Co. Ltd. and Shenzhen Baoneng Investment Group Co. Ltd. Wuxi Baoneng Real Estate Co. Ltd. Baoneng Holdings (China) Co.Ltd. Shenzhen Jushenghua Co. Ltd. and Mr. Yao Zhenhua Changan Trust applied for compulsory execution. Mr.Yao Zhenhua as the guarantor of the debt was jointly and severally liable for the debt of RMB 1117 million. (12) Due to the case of notarising creditor's rights documents between China Minsheng Trust Co. Ltd. and the defendants Shenzhen Baoneng Investment Group Co. Ltd. Hefei Baohui Real Estate Co. Ltd. Shenzhen Baoneng Enterprise Management Co. Ltd. Anhui Baoneng Land Co. Ltd. and Mr. Yao Zhenhua Minsheng Trust applied for compulsory execution. As the guarantor of the debt Mr. Yao Zhenhua bore unlimited several and joint liability for the debt of RMB 4207 million. (13) Due to the case of notarising creditor's rights documents between Shanghai Aijian Trust Co. Ltd. and Shenzhen Shum Yip Logistics Group Co. Ltd. Shenzhen Baoneng Investment Group Co. Ltd. Chia Tai (Shenzhen) Development Co. Ltd. Hefei Baohui Real Estate Co. Ltd. Hefei Baoneng Real Estate Development Co. Ltd.Shenzhen Jushenghua Co. Ltd. and Mr. Yao Zhenhua Aijian Trust applied to the court for compulsory execution.As the guarantor of the debt Mr. Yao Zhenhua was jointly and severally liable for the debt of RMB 416 million. (14) Due to the dispute over the loan contract with Baoneng Automobile Group Co. Ltd. Chongqing International Trust applied to the court for compulsory execution and Mr. Yao Zhenhua as the guarantor of the debt was jointly and severally liable for the debt of RMB 2186 million. (15) Due to the case of notarising creditor's rights documents between China Minsheng Trust Co. Ltd. and Shenzhen Shum Yip Logistics Group Co. Ltd. Shenzhen Baoneng Investment Group Co. Ltd. Shenzhen Jushenghua Co. Ltd.and Mr. Yao Zhenhua Minsheng Trust applied to the court for compulsory execution and Mr. Yao Zhenhua as the guarantor of the debt was jointly and severally liable for the debt of RMB 496 million. (16) Due to the case of China Minsheng Trust Co. Ltd. Shenzhen Shum Yip Logistics Group Co. Ltd. Shenzhen Baoneng Investment Group Co. Ltd. Shenzhen Jushenghua Co. Ltd. and Mr. Yao Zhenhua Minsheng Trust applied to the court for compulsory execution and Mr. Yao Zhenhua as the guarantor of the debt was jointly and severally liable for the debt of RMB 2238 million. (17) Due to the financial loan contract dispute between AVIC Trust Co. Ltd. and Shenzhen Lingdao Auto Life Service Co. Ltd. Shenzhen Baoneng Investment Group Co. Ltd. Shenzhen Jushenghua Co. Ltd. Shenzhen Shum Yip Logistics Group Co. Ltd. Tengchong Baoneng Real Estate Co. Ltd. Zhejiang Jintian Real Estate Development Co. Ltd. Tengchong Beihai Wetland Ecotourism Investment Co. Ltd. and Mr. Yao Zhenhua AVIC Trust applied to the court for compulsory execution and Mr. Yao Zhenhua as the guarantor of the debt was jointly and severally liable for the debt of RMB 984 million. (18) Due to the financial loan contract dispute between AVIC Trust Co. Ltd. and Shenzhen Shum Yip Logistics Group Co. Ltd. Shenzhen Baoneng Investment Group Co. Ltd. Shenzhen Jushenghua Co. Ltd. Baoneng Real Estate Co. Ltd. and Wuhu Baoneng Real Estate Co. Ltd. Baoneng City Co. Ltd. Tengchong Beihai Wetland Eco- Tourism Investment Co. Ltd. and Mr. Yao Zhenhua AVIC Trust applied to the court for execution. Mr. Yao Zhenhua as the guarantor of the debt was jointly and severally liable for the debt of RMB 549 million (principal exclusive of interest penalty interest etc.). (19) Due to the loan contract dispute between Shenzhen Branch of Ping An Bank Co. Ltd. and Shenzhen Shum Yip Logistics Group Co. Ltd. Shenzhen Jushenghua Co. Ltd. Shenzhen Baoneng Investment Group Co. Ltd. Baoneng Real Estate Co. Ltd. Shenzhen First Space Operation Management Co. Ltd. Mr. Yao Zhenhua and Baoneng City Co. Ltd. Shenzhen Branch applied to the court for execution. Mr. Yao Zhenhua as the guarantor of the debt was jointly and severally liable for the debt of RMB 3433 million. A settlement has been reached in this case and the 71CSGAnnual Report 2024 execution has been terminated. (20) Due to the execution of lawsuit costs of the loan contract dispute between Shenzhen Branch of Ping An Bank Co. Ltd. and Baoneng City Co. Ltd. Baoneng Real Estate Co. Ltd. Baoneng Holdings (China) Co. Ltd. Mr. Yao Zhenhua and Shenzhen Liujin Investment Co. Ltd. the Higher People's Court of Guangdong Province appointed Shenzhen Intermediate People's Court of Guangdong Province to execute the case. Mr. Yao Zhenhua as the guarantor of the loan contract dispute was jointly and severally liable for the lawsuit costs of RMB 13920800 arising from the loan contract dispute. The said lawsuit costs have been transferred and executed. (21) Due to the loan contract dispute between Shenzhen Branch of Ping An Bank Co. Ltd. and Baoneng City Co. Ltd. Baoneng Real Estate Co. Ltd. Baoneng Holdings (China) Co. Ltd. Mr. Yao Zhenhua and Shenzhen Liujin Investment Co. Ltd. Shenzhen Branch of Ping An Bank Co. Ltd. applied to the court for execution. Mr. Yao Zhenhua as the guarantor of the debt was jointly and severally liable for the debt of RMB 5562 million. In this case RMB 3674 million was obtained from the auction of a residential unit and RMB 2226 million was repaid to Ping An Bank for debt repayment after deducting the appropriate taxes and fees. (22) Due to the case of execution of notarising creditor's rights documents between Chongqing International Trust Co. Ltd. and Shenzhen Jushenghua Co. Ltd. Zhongshan Runtian Shenzhen Baoneng Investment Group Co. Ltd.and Mr. Yao Zhenhua Chongqing International Trust Co. Ltd. Chongqing International Trust Co. Ltd. applied to the court for execution and Mr. Yao Zhenhua as the guarantor of the debt was jointly and severally liable for the debt of RMB 541 million. (23) Due to the case that Tibet Bank Co. Ltd. sued Lhasa Baochuang Automobile Sales Co. Ltd. Mr. Yao Zhenhua Shenzhen Baoneng Investment Group Co. Ltd. Shenzhen Jushenghua Co. Ltd. and Shenzhen Shum Yip Logistics Group Co. Ltd. were jointly and severally liable for the lawsuit costs of the loan contract dispute which was executed by the Lhasa Intermediate People's Court of the Tibet Autonomous Region. Mr. Yao Zhenhua as the guarantor of the loan contract dispute was jointly and severally liable for the lawsuit costs of RMB 5.11 million arising from the loan contract dispute. (24) Due to the case that Tibet Bank Co. Ltd. sued Lhasa Baochuang Automobile Sales Co. Ltd. Mr. Yao Zhenhua Shenzhen Baoneng Investment Group Co. Ltd. Shenzhen Jushenghua Co. Ltd. and Shenzhen Shum Yip Logistics Group Co. Ltd. were jointly and severally liable for the debts arising from the loan contract dispute and were executed by Lhasa Intermediate People's Court of the Tibet Autonomous Region. Mr. Yao Zhenhua as the guarantor of the loan contract dispute bore joint and several guarantee liability for the debt of RMB 829 million arising from the loan contract dispute which has been paid off. (25) Due to the case that Chongqing International Trust Co. Ltd. sued Baoneng Automobile Group Co. Ltd. Nanjing Baoneng Urban Development Co. Ltd. Shenzhen Baoneng Investment Group Co. Ltd. Baoneng Holdings (China) Co. Ltd. and Yao Zhenhua as the guarantor of the debt Mr. Yao Zhenhua was executed by the Chongqing No. 5 Intermediate People's Court and he was jointly and severally liable for the debt of RMB 2186 million.Mr. Yao Zhenhua had no debt with comparatively large amount that had not been paid when due.According to the reply of the shareholder Shenzhen Guanlong Logistics Co. Ltd.: As of December 31 2023 Shenzhen Guanlong Logistics Co. Ltd. has not received relevant information on share freezing and lawsuit and it had no debt with comparatively large amount that had not been paid when due." XIV. Major related transaction 1. Related transaction with routine operation concerned □ Applicable √ Not applicable 72CSGAnnual Report 2024 2. Related transaction with acquisition of assets or equity sales of assets or equity concerned □ Applicable √ Not applicable 3. Related transaction with jointly external investment concerned □ Applicable √ Not applicable 4. Credits and liabilities with related parties □ Applicable √ Not applicable 5. Transactions with related financial companies □ Applicable √ Not applicable 6. Transactions between financial companies controlled by the company and related parties □ Applicable √ Not applicable 7. Other major related transaction □ Applicable √ Not applicable XV. Significant contracts and their implementation 1. Trusteeship contracting and leasing (1) Trusteeship □ Applicable √ Not applicable (2) Contract □ Applicable √ Not applicable (3) Leasing □ Applicable √ Not applicable 2. Major guarantees √ Applicable □ Not applicable Unit: RMB 0000 73CSGAnnual Report 2024 External guarantees of the Company and its subsidiaries (excluding the guarantees for subsidiaries) Date of disclosure of Guarante related Actual date Actual Guarante Counter Complete e for Name of guarantee Guarantee e Collateral guarantee Guaranty implemeannounceme of amount of related object amount (if any) circumstan period ntation or nt on guarantee guarantee type party orce (if any) not guarantee not amount Total amount of approved external guarantees during the Total actual amount of external guarantees during 00 report period (A1) the report period (A2) Total amount of approved external guarantees at the end Total balance of actual external guarantees at the 00 of the report period (A3) end of the report period (A4) Guarantees of the Company for its subsidiaries Date of disclosure of Guarante Guarante Counter Completerelated Actual date Actual e for Name of guarantee Guarantee e Collateral guarantee Guaranty implemeannounceme of amount of related object amount (if any) circumstan period ntation or nt on guarantee guarantee type party orce (if any) not guarantee not amount Xianning CSG Joint April 26 October Photoelectric Glass 3000 2247 liability None None 1 year No No 2024152024 Co. Ltd. guarantee Xianning CSG Joint April 26 July 06 Photoelectric Glass 5000 0 liability None None 1 year No No 20242024 Co. Ltd. guarantee Xianning CSG Joint April 26 August 27 Photoelectric Glass 2000 1457 liability None None 1 year No No 20242024 Co. Ltd. guarantee Xianning CSG Joint April 26 May 10 Photoelectric Glass 3500 2000 liability None None 1 year No No 20232024 Co. Ltd. guarantee Xianning CSG Joint April 26 August 20 Energy-Saving Glass 8000 7808 liability None None 1 year No No 20242024 Co. Ltd. guarantee Xianning CSG Joint April 26 August 14 Energy-Saving Glass 5600 1525 liability None None 5 years No No 20242024 Co. Ltd. guarantee Xianning CSG Joint April 26 December Energy-Saving Glass 8000 0 liability None None 1 year No No 2023212023 Co. Ltd. guarantee Xianning CSG Joint April 26 September Energy-Saving Glass 3000 2500 liability None None 1 year No No 2024062024 Co. Ltd. guarantee Xianning CSG Joint April 26 August 08 Energy-Saving Glass 5000 1985 liability None None 1 year No No 20242024 Co. Ltd. guarantee Xianning CSG Joint April 26 July 03 Energy-Saving Glass 5000 0 liability None None 1 year No No 20242024 Co. Ltd. guarantee Yichang CSG Joint April 26 April 03 Photoelectric Glass 1800 625 liability None None 1 year No No 20232024 Co. Ltd. guarantee Yichang CSG April 26 November Joint 600 600 None None 1 year No No Photoelectric Glass 2024 26 2024 liability 74CSGAnnual Report 2024 Co. Ltd. guarantee Yichang CSG Joint April 26 December Photoelectric Glass 1200 316 liability None None 1 year No No 2024022024 Co. Ltd. guarantee Yichang CSG Joint April 25 August 16 Photoelectric Glass 600 0 liability None None 2 years Yes No 20222022 Co. Ltd. guarantee Joint Hebei Panel Glass April 26 June 05 5000 500 liability None None 1 year Yes No Co. Ltd. 2023 2023 guarantee Joint Hebei Panel Glass April 26 September 5000 203 liability None None 6 years No No Co. Ltd. 2024 27 2024 guarantee Joint Hebei Panel Glass April 25 May 16 2500 0 liability None None 3 years Yes No Co. Ltd. 2022 2022 guarantee Joint Hebei Panel Glass April 26 December 5000 0 liability None None 2 years No No Co. Ltd. 2024 04 2024 guarantee Joint Hebei Panel Glass October 30 December 16500 8545 liability None None 5 years No No Co. Ltd. 2021 17 2021 guarantee Joint Hebei CSG Glass April 26 July 4 3000 2989 liability None None 1 year No No Co. Ltd. 2024 2024 guarantee Joint Hebei CSG Glass April 26 June 25 14000 4023 liability None None 1 year No No Co. Ltd. 2024 2024 guarantee Joint Hebei CSG Glass April 26 November 8000 669 liability None None 3 years No No Co. Ltd. 2024 27 2024 guarantee Joint Hebei CSG Glass April 26 400027 2024 2000 liability None None 1 year No No Co. Ltd. 2024 guarantee Joint Hebei CSG Glass April 25 May 16 2500 0 liability None None 3 years No No Co. Ltd. 2022 2022 guarantee Dongguan CSG Joint April 26 August 09 Architectural Glass 5000 2338 liability None None 1 year No No 20242024 Co. Ltd. guarantee Dongguan CSG Joint April 26 January 06 Architectural Glass 10000 5225 liability None None 1 year No No 20232024 Co. Ltd. guarantee Joint Xianning CSG Glass April 26 October 10000 4959 liability None None 1 year No No Co. Ltd. 2024 16 2024 guarantee Joint Xianning CSG Glass April 26 August 16 5000 1590 liability None None 4 years No No Co. Ltd. 2023 2023 guarantee Joint Xianning CSG Glass April 26 August 13 7000 7000 liability None None 1 year No No Co. Ltd. 2024 2024 guarantee Joint Xianning CSG Glass April 26 May 24 20000 4000 liability None None 1 year No No Co. Ltd. 2023 2024 guarantee Xianning CSG Glass December March 25 Joint 15000 10689 None None 7 years No No Co. Ltd. 25 2021 2022 liability 75CSGAnnual Report 2024 guarantee Joint Xianning CSG Glass April 26 June 02 50000 30706 liability None None 7 years No No Co. Ltd. 2023 2023 guarantee Joint Xianning CSG Glass April 26 May 30 20000 11936 liability None None 1 year No No Co. Ltd. 2023 2024 guarantee Joint Xianning CSG Glass April 26 June 09 12000 5603 liability None None 5 years No No Co. Ltd. 2023 2023 guarantee Joint Xianning CSG Glass April 26 September 4000 4000 liability None None 1 year No No Co. Ltd. 2024 13 2024 guarantee Joint Xianning CSG Glass June 29 July 07 20000 6540 liability None None 5 years No No Co. Ltd. 2021 2021 guarantee Joint Chengdu CSG Glass April 26 September 5000 1262 liability None None 6 years No No Co. Ltd. 2024 27 2024 guarantee Joint Chengdu CSG Glass April 26 October 2000 1800 liability None None 1 year Yes No Co. Ltd. 2023 07 2023 guarantee Joint Chengdu CSG Glass April 26 September 3000 1000 liability None None 1 year No No Co. Ltd. 2023 20 2023 guarantee Joint Chengdu CSG Glass April 25 November 10000 4000 liability None None 1 year Yes No Co. Ltd. 2022 16 2022 guarantee Joint Chengdu CSG Glass April 26 February 10000 4396 liability None None 1 year No No Co. Ltd. 2023 28 2024 guarantee Joint Chengdu CSG Glass April 25 November 5000 1861 liability None None 3 years No No Co. Ltd. 2022 25 2022 guarantee Joint Chengdu CSG Glass April 26 February 5000 950 liability None None 1 year No No Co. Ltd. 2023 01 2024 guarantee Joint Chengdu CSG Glass April 26 May 31 16437 1131 liability None None 6 years No No Co. Ltd. 2023 2024 guarantee Joint Chengdu CSG Glass April 26 January 29 3000 2994 liability None None 1 year No No Co. Ltd. 2023 2024 guarantee Sichuan CSG Energy Joint April 26 September Conservation Glass 3000 2000 liability None None 1 year No No 2023202023 Co. Ltd. guarantee Sichuan CSG Energy Joint April 26 October Conservation Glass 5000 3000 liability None None 1 year Yes No 2023072023 Co. Ltd. guarantee Sichuan CSG Energy Joint April 26 August 13 Conservation Glass 4400 635 liability None None 5 years No No 20242024 Co. Ltd. guarantee Sichuan CSG Energy Joint April 26 August 13 Conservation Glass 1000 1000 liability None None 1 year No No 20242024 Co. Ltd. guarantee Sichuan CSG EnergyApril 26 August 13 Joint 4000 4000 None None 1 year No No Conservation Glass 2024 2024 liability 76CSGAnnual Report 2024 Co. Ltd. guarantee Sichuan CSG Energy Joint April 26 December Conservation Glass 5000 0 liability None None 1 year Yes No 2023252023 Co. Ltd. guarantee Sichuan CSG Energy Joint April 26 February Conservation Glass 3000 67 liability None None 1 year No No 2023202024 Co. Ltd. guarantee Sichuan CSG Energy Joint April 26 June 17 Conservation Glass 12000 10000 liability None None 1 year No No 20242024 Co. Ltd. guarantee Joint Wujiang CSG Glass February 19 March 12 10000 4317 liability None None 4 years Yes No Co. Ltd. 2021 2021 guarantee Joint Wujiang CSG Glass April 26 January 09 10000 9720 liability None None 1 year No No Co. Ltd. 2023 2024 guarantee Joint Wujiang CSG Glass April 26 May 21 5000 2313 liability None None 1 year No No Co. Ltd. 2023 2024 guarantee Joint Wujiang CSG Glass April 26 May 16 6000 0 liability None None 1 year No No Co. Ltd. 2023 2024 guarantee Joint Wujiang CSG Glass April 26 April 01 5000 700 liability None None 1 year No No Co. Ltd. 2023 2024 guarantee Joint Wujiang CSG Glass April 26 December 7000 0 liability None None 1 year No No Co. Ltd. 2024 18 2024 guarantee Joint Wujiang CSG Glass April 26 September 5000 0 liability None None 6 years No No Co. Ltd. 2024 27 2024 guarantee CSG (Suzhou) Corporate Joint April 26 October Headquarters 15700 2280 liability None None 5 years No No 2023082023 Management Co. guarantee Ltd.Wujiang CSG East Joint April 26 December China Architectural 3000 0 liability None None 1 year No No 2024182024 Glass Co. Ltd. guarantee Wujiang CSG East Joint April 26 January 09 China Architectural 10000 2000 liability None None 1 year No No 20232024 Glass Co. Ltd. guarantee Wujiang CSG East Joint April 26 April 01 China Architectural 5000 1000 liability None None 1 year No No 20232024 Glass Co. Ltd. guarantee Wujiang CSG East Joint April 25 May 26 China Architectural 12400 2296 liability None None 5 years No No 20222022 Glass Co. Ltd. guarantee Wujiang CSG East Joint April 26 May 16 China Architectural 6000 0 liability None None 1 year No No 20232024 Glass Co. Ltd. guarantee Wujiang CSG East Joint April 26 March 21 China Architectural 5000 0 liability None None 1 year No No 20232024 Glass Co. Ltd. guarantee Wujiang CSG East Joint April 26 April 29 China Architectural 5000 3324 liability None None 1 year No No 20232024 Glass Co. Ltd. guarantee 77CSGAnnual Report 2024 Joint Dongguan CSG April 26 September 5000 2146 liability None None 6 years No No Solar Glass Co. Ltd. 2024 27 2024 guarantee Joint Dongguan CSG April 25 July 21 4000 1533 liability None None 5 years No No Solar Glass Co. Ltd. 2022 2022 guarantee Anhui CSG New Joint April 26 June 30 Energy Material 1953 liability None None 1 year No No 20242024 Technology Co. Ltd. guarantee Guangxi CSG New Joint April 26 June 30 Energy Material 0 liability None None 1 year No No 20242024 Technology Co. Ltd. guarantee Zhaoqing CSG Joint April 26 June 30 Energy-Saving Glass 4865 liability None None 1 year No No 20242024 Co. Ltd. guarantee Zhaoqing CSG Joint April 26 February Energy-Saving Glass 33000 301 liability None None 5 years No No2023 27 2024 Co. Ltd. guarantee Joint Wujiang CSG Glass April 26 December 889 liability None None 5 years No No Co. Ltd. 2024 05 2024 guarantee Joint Dongguan CSG PV- April 26 June 30 3886 liability None None 1 year No No tech Co. Ltd. 2024 2024 guarantee Dongguan CSG Joint April 26 June 30 Architectural Glass 1701 liability None None 1 year No No 20242024 Co. Ltd. guarantee Joint Dongguan CSG April 26 June 30 4992 liability None None 1 year No No Solar Glass Co. Ltd. 2024 2024 guarantee Joint Dongguan CSG April 25 May 31 9000 4150 liability None None 4 years No No Solar Glass Co. Ltd. 2022 2022 guarantee Qingyuan CSG Joint April 26 August 22 Energy-Saving New 6000 400 liability None None 1 year No No 20242024 Materials Co. Ltd. guarantee Qingyuan CSG Joint April 26 January 05 Energy-Saving New 10000 3652 liability None None 1 year No No 20232024 Materials Co. Ltd. guarantee Qingyuan CSG Joint April 25 August 04 Energy-Saving New 37400 0 liability None None 5 years Yes No 20222022 Materials Co. Ltd. guarantee Qingyuan CSG Joint April 26 June 04 Energy-Saving New 5000 30 liability None None 3 years No No 20232024 Materials Co. Ltd. guarantee Qingyuan CSG Joint April 25 April 24 Energy-Saving New 10000 5368 liability None None 1 year No No 20222023 Materials Co. Ltd. guarantee Joint Yichang CSG April 26 March 06 1800 800 liability None None 1 year No No Display Co. Ltd. 2023 2024 guarantee Joint Yichang CSG April 25 February 600 600 liability None None 1 year Yes No Display Co. Ltd. 2022 24 2023 guarantee Joint Yichang CSG April 25 June 24 3000 2600 liability None None 1 year Yes No Display Co. Ltd. 2022 2022 guarantee 78CSGAnnual Report 2024 Joint Yichang CSG April 26 November 1000 0 liability None None 1 year Yes No Polysilicon Co. Ltd. 2023 28 2023 guarantee Joint Yichang CSG April 26 August 06 12400 5000 liability None None 5 years No No Polysilicon Co. Ltd. 2024 2024 guarantee Joint Yichang CSG April 26 January 16 13000 3320 liability None None 4 years No No Polysilicon Co. Ltd. 2023 2024 guarantee Tianjin CSG Energy- Joint April 26 April 16 Saving Glass Co. 3000 83 liability None None 1 year No No 20232024 Ltd. guarantee Tianjin CSG Energy- Joint April 26 July 03 Saving Glass Co. 5500 0 liability None None 1 year No No 20242024 Ltd. guarantee Tianjin CSG Energy- Joint April 26 August 21 Saving Glass Co. 6000 2722 liability None None 1 year No No 20242024 Ltd. guarantee Tianjin CSG Energy- Joint April 26 August 11 Saving Glass Co. 3000 500 liability None None 1 year Yes No 20232023 Ltd. guarantee Tianjin CSG Energy- Joint February 19 March 23 Saving Glass Co. 7000 1551 liability None None 4 years No No 20212021 Ltd. guarantee Tianjin CSG Energy- Joint April 26 August 15 Saving Glass Co. 5000 4401 liability None None 1 year No No 20242024 Ltd. guarantee Tianjin CSG Energy- Joint April 26 October Saving Glass Co. 2000 1591 liability None None 1 year No No 2024162024 Ltd. guarantee Anhui CSG New Joint August 10 October Energy Material 55000 39303 liability None None 6 years No No 2021192021 Technology Co. Ltd. guarantee Anhui CSG New Joint August 10 August 28 Energy Material 180000 88736 liability None None 7 years No No 20212021 Technology Co. Ltd. guarantee Anhui CSG New Joint April 25 July 05 Energy Material 35000 25700 liability None None 3 years No No 20222022 Technology Co. Ltd. guarantee Anhui CSG New Joint April 25 February Energy Material 20000 11956 liability None None 3 years No No 2022062023 Technology Co. Ltd. guarantee Anhui CSG New Joint April 26 August 09 Energy Material 30000 8439 liability None None 1 year No No 20242024 Technology Co. Ltd. guarantee Anhui CSG New Joint December March 30 Energy Material 50000 26280 liability None None 9 years No No 2520212022 Technology Co. Ltd. guarantee Anhui CSG New Joint April 26 June 20 Energy Material 10000 10000 liability None None 1 year No No 20242024 Technology Co. Ltd. guarantee Anhui CSG New Joint April 26 October Energy Material 10000 5900 liability None None 1 year No No 2024302024 Technology Co. Ltd. guarantee Anhui CSG Silicon Joint April 26 July 06 Valley Mingdu 43379 39000 liability None None 10 years No No 20232023 Mining Development guarantee 79CSGAnnual Report 2024 Co. Ltd.Joint Anhui CSG Quartz June 29 September 9000 3196 liability None None 5 years No No Materials Co. Ltd. 2021 13 2021 guarantee Joint Anhui CSG Quartz April 26 March 25 5000 4960 liability None None 3 years No No Materials Co. Ltd. 2023 2024 guarantee Joint Anhui CSG Quartz April 26 June 27 1000 1000 liability None None 1 year No No Materials Co. Ltd. 2024 2024 guarantee Joint Anhui CSG Quartz April 26 November 7000 500 liability None None 1 year No No Materials Co. Ltd. 2024 12 2024 guarantee Joint Guangxi CSG QuartzApril 26 July 06 7200 liability None None 8 years No No Materials Co. Ltd. 2023 2023 guarantee 27400 Joint Guangxi CSG April 26 July 06 7800 liability None None 8 years No No Mining Co. Ltd. 2023 2023 guarantee Joint Guangxi CSG April 26 June 07 10000 0 liability None None 5 years Yes No Mining Co. Ltd. 2023 2023 guarantee Joint Guangxi CSG QuartzApril 26 June 07 10000 0 liability None None 5 years Yes No Materials Co. Ltd. 2023 2023 guarantee Guangxi CSG New Joint April 25 April 04 Energy Material 30000 6020 liability None None 3 years No No 20222023 Technology Co. Ltd. guarantee Guangxi CSG New Joint April 26 October Energy Material 20000 0 liability None None 1 year No No 2024302024 Technology Co. Ltd. guarantee Guangxi CSG New Joint April 26 August 01 Energy Material 20000 9800 liability None None 8 years No No 20242024 Technology Co. Ltd. guarantee Guangxi CSG New Joint April 25 July 26 Energy Material 50000 26000 liability None None 8 years No No 20222022 Technology Co. Ltd. guarantee Guangxi CSG New Joint April 26 October Energy Material 5000 0 liability None None 2 years No No 2024312024 Technology Co. Ltd. guarantee Guangxi CSG New Joint April 25 July 26 Energy Material 80000 48066 liability None None 8 years No No 20222022 Technology Co. Ltd. guarantee Guangxi CSG New Joint April 26 May 31 Energy Material 14500 3000 liability None None 1 year No No 20242024 Technology Co. Ltd. guarantee Guangxi CSG New Joint April 26 December Energy Material 5000 0 liability None None 1 year No No 2024252024 Technology Co. Ltd. guarantee Guangxi CSG New Joint April 26 March 13 Energy Material 12000 10000 liability None None 1 year No No 20232024 Technology Co. Ltd. guarantee Xi'an CSG Energy Joint April 25 March 27 Saving Glass 34400 16472 liability None None 7 years No No 20222023 Technology Co. Ltd. guarantee Xi'an CSG Energy April 26 August 05 Joint 5000 0 None None 1 year No No Saving Glass 2024 2024 liability 80CSGAnnual Report 2024 Technology Co. Ltd. guarantee Xi'an CSG Energy Joint April 26 March 21 Saving Glass 2500 0 liability None None 1 year No No 20232024 Technology Co. Ltd. guarantee Qinghai CSG New Joint April 26 September Energy Technology 150000 30000 liability None None 8 years No No 2023262023 Co. Ltd. guarantee Qinghai CSG New Joint April 26 January 24 Energy Technology 69997 45823 liability None None 6 years No No 20232024 Co. Ltd. guarantee Qinghai CSG New Joint April 26 September Energy Technology 20000 0 liability None None 6 years No No 2024272024 Co. Ltd. guarantee Qinghai CSG New Joint April 26 October Energy Technology 50000 47129 liability None None 7 years No No 2023312023 Co. Ltd. guarantee Zhaoqing CSG New Joint April 25 April 06 Energy Technology 1530 1073 liability None None 7 years No No 20222023 Co. Ltd. guarantee Anhui CSG Joint April 26 April 27 Photovoltaic Energy 10040 5949 liability None None 7 years No No 20232023 Co. Ltd. guarantee Xianning CSG Joint April 26 April 08 Photovoltaic Energy 3000 1831 liability None None 9 years No No 20232024 Co. Ltd. guarantee Joint Zhanjiang CSG New April 25 March 28 1000 850 liability None None 5 years No No Energy Co. Ltd. 2022 2023 guarantee Joint Zhanjiang CSG New April 26 December 3500 0 liability None None 9 years No No Energy Co. Ltd. 2024 26 2024 guarantee Zhaoqing CSG Joint April 26 July 03 Energy-Saving Glass 5000 1500 liability None None 3 years No No 20242024 Co. Ltd. guarantee Zhaoqing CSG Joint September September Energy-Saving Glass 34000 19755 liability None None 5 years No No 222020252020 Co. Ltd. guarantee Dongguan CSG Joint April 26 June 30 Architectural Glass 3585 liability None None 1 year No No 20242024 Co. Ltd. guarantee Joint Dongguan CSG April 26 June 30 1000 liability None None 1 year No No Solar Glass Co. Ltd. 2024 2024 guarantee Joint Dongguan CSG PV- April 26 June 30 1295 liability None None 1 year No No tech Co. Ltd. 2024 2024 guarantee Anhui CSG New Joint April 26 June 30 Energy Material 7000 liability None None 1 year No No 20242024 Technology Co. Ltd. guarantee 100000 Joint Wujiang CSG Glass April 26 June 30 0 liability None None 1 year No No Co. Ltd. 2024 2024 guarantee Joint Wujiang CSG Glass April 26 July 29 1664 liability None None 4 years No No Co. Ltd. 2024 2024 guarantee Xi'an CSG Energy April 26 August 30 Joint 7 None None 1 year No No Saving Glass 2024 2024 liability 81CSGAnnual Report 2024 Technology Co. Ltd. guarantee Joint Chengdu CSG Glass April 26 June 30 0 liability None None 1 year No No Co. Ltd. 2024 2024 guarantee Sichuan CSG Energy Joint April 26 June 30 Conservation Glass 319 liability None None 1 year No No 20242024 Co. Ltd. guarantee Qinghai CSG New Joint April 26 June 30 Energy Technology 420 liability None None 1 year No No 20242024 Co. Ltd. guarantee Joint Yichang CSG April 26 June 30 6161 liability None None 1 year No No Polysilicon Co. Ltd. 2024 2024 guarantee Joint Xianning CSG Glass April 26 June 30 0 liability None None 1 year No No Co. Ltd. 2024 2024 guarantee Xianning CSG Joint April 26 June 30 Energy-Saving Glass 84 liability None None 1 year No No 20242024 Co. Ltd. guarantee Wujiang CSG East Joint April 26 June 30 China Architectural 591 liability None None 1 year No No 20242024 Glass Co. Ltd. guarantee Tianjin CSG Energy- Joint April 26 June 30 Saving Glass Co. 1013 liability None None 1 year No No 20242024 Ltd. guarantee Zhaoqing CSG Joint April 26 June 30 Energy-Saving Glass 0 liability None None 1 year No No 20242024 Co. Ltd. guarantee Total actual amount Total amount of approved of guarantees for guarantees for subsidiaries during 475700subsidiaries during 284521 the report period (B1) the report period (B2) Total balance of Total amount of approved actual guarantees for guarantees for subsidiaries at the 1809583subsidiaries at the 820718 end of the report period (B3) end of the report period (B4) Guarantees of subsidiaries for their subsidiaries Date of disclosure of Guarante Guarante Counter Completerelated Actual date Actual e for Name of guarantee Guarantee Collateral guarantee Guaranty impleme announceme of amount of e related object amount (if any) circumstan period ntation or nt on guarantee guarantee type party orce (if any) not guarantee not amount Total actual amount Total amount of approved of guarantees for guarantees for subsidiaries during 0subsidiaries during 0 the report period (C1) the report period (C2) Total amount of approved Total balance of guarantees for subsidiaries at the 0actual guarantees for 0 end of the report period (C3) subsidiaries at the end of the report 82CSGAnnual Report 2024 period (C4) Total amount of the Company's guarantees (i.e. the sum of the first three items) Total actual amount Total amount of approved of guarantees during guarantees during the report period 475700 284521 the report period (A1+B1+C1) (A2+B2+C2) Total actual balance Total amount of approved of guarantees at the guarantees at the end of the report 1809583 820718 end of the report period (A3+B3+C3) period (A4+B4+C4) The proportion of total actual amount of guarantees (i.e. 60.63% A4+B4+C4) in the net assets of the Company Including: Balance of guarantees provided for shareholders actual 0 controllers and its related parties (D) Balance of debt guarantees provided directly or indirectly for guaranteed objects with an asset-liability ratio 68460 exceeding 70% (E) The amount of guarantees exceeding 50% of the net assets 0 (F) Total guarantee amount of the above three items (D + E + 68460 F) Explanation on guarantee responsibility incurred in the report period or evidence showing the description of the Nil possible joint and several liabilities for repayment for the guarantee contracts not yet due (if any) Explanation on providing external guarantees in violation Nil of prescribed procedures (if any) Note: 1. The 2023 Annual General Meeting of the Company reviewed and passed the Proposal for the 2024 Guarantee Plan and approved the Company and its subsidiaries to provide guarantees in a total amount of not exceeding RMB 24400 million (including the effective and unexpired amount) for the 2024 credit lines from financial institutions to guaranteed entities within the scope of consolidated statements. Among them the total amount of guarantees for all guaranteed entities with asset liability ratio of 70% or above shall not exceed the equivalent amount of RMB 2000 million (including the effective and unexpired amount).The Company's external guarantees are all provided for subsidiaries within the scope of the consolidated statement. As of December 31 2024 the actual guarantee balance was RMB 8207.18 million (of which the actual guarantee balance with liability/asset ratio of 70% or above was RMB 684.6 million) accounting for 60.63% of the parent company's net assets of RMB 13535.9498 million at the end of 2024 and 26.29% of the total assets of RMB 31220.4179 million The Company has no overdue guarantee. 2. The Company's 2022 Annual General Meeting reviewed and passed the Proposal on the Development of Asset Pool Business in 2023. In order to achieve the overall management of the Company's assets such as bills and letters of credit the General Meeting of Shareholders approved the Company and its subsidiaries to conduct asset pool business of no more than RMB 1.6 billion. Under the premise of controllable risks various guarantee methods such as maximum pledge general pledge deposit certificate pledge bill pledge and margin pledge can be adopted for business development. As of December 31 2024 the actual pledge amount of the asset pool business was RMB 857.81 million and the financing balance was RMB 856.45 million.Explanation on compound guarantees Nil 83CSGAnnual Report 2024 3. Entrust others to manage cash assets (1) Entrusted Financing √ Applicable □ Not applicable Overview of entrusted financing during the report period Unit: RMB 0000 Amount of impairment Source of funds for Amount of Amount not accrued forType entrusted financing entrusted Outstanding collected after the overdue financing balance due date uncollected entrusted financing Structured deposit Own funds 26000 9600 0 0 Total 26000 9600 0 0 Details of high-risk entrusted financing with significant single amount or low security and poor liquidity □Applicable √ Not applicable Entrusted financing expected to be unable to recover the principal or other circumstances that may lead to impairment □Applicable √ Not applicable (2) Entrusted loans □Applicable √ Not applicable 4. Other material contracts □Applicable √ Not applicable XVI. Statement on other important matters √ Applicable □ Not applicable 1. Ultra-short-term financing bills On May 16 2022 the Company's 2021 Annual General Meeting reviewed and approved the "Proposal on Application for Registration and Issuance of Medium-Term Notes and Ultra-short-term Financing Bills" which agreed that the Company would register and issue ultra-short-term financing bills with a registered amount of not more than RMB 1 billion. The Company can issue one or more times within the validity period of the registration according to the actual capital needs and the capital situation of the inter-bank market. On October 30 2023 the Dealers Association held the 128th registration meeting in 2023 and decided to accept the registration of ultra-short-term financing notes with a total amount of RMB 1 billion and a validity period of two years.On December 12 2024 the Company issued the first phase of 2024 ultra-short-term financing notes (Kechuang Notes) with a total amount of 300 million yuan and a term of 270 days with an issue interest rate of 2.4% and payment date of September 9 2025. 2. Medium-term notes On May 16 2022 the Company's 2021 Annual General Meeting reviewed and approved the "Proposal on Application 84CSGAnnual Report 2024 for Registration and Issuance of Medium-term Notes and Ultra-short-term Financing Bills" which agreed that the Company would register and issue medium-term notes with a registered amount of not more than RMB 2 billion.Actual capital needs and inter-bank market capital status can be issued one or more times within the validity period of registration. On October 30 2023 the Dealers Association held its 128th registration meeting for 2023 and decided to accept the registration of medium-term notes with a total value of RMB 2 billion and a validity period of two years. 3. The matter of the special fund of RMB 171 million for talent introduction Regarding the special fund of RMB 171 million for talent introduction the Company filed an infringement compensation lawsuit against Zeng Nan and others and Yichang Hongtai Real Estate Co. Ltd. on December 15 2021 and the Shenzhen Intermediate People's Court officially accepted it on January 28 2022. The first trial of the case was completed in Shenzhen Intermediate People's Court on June 21 2022. On 4 June 2024 the Company received the Civil Judgment of the first instance issued by Shenzhen Intermediate People's Court which rejected all of the Company's litigation requests. In June 2024 the Company filed an appeal to the Guangdong Higher People's Court. The second trial of the case was held in the Guangdong Higher People's Court on September 12 2024 and the case is currently in the process of second trial. 4. Postponed re-election of the Board of Directors and the Supervisory Committee The term of office of the ninth Board of Directors and Supervisory Committee of the Company expired on 21 May 2023 and re- election is progressing steadily as of now. According to Articles 96 and 138 of the Articles of Association of CSG Holding Co.Ltd. if a new director/supervisor is not re-elected in time upon the expiry of the term of office of a director/supervisor before the re-elected director/supervisor assumes his/her office the former director/supervisor shall still perform the duties of a director/supervisor in accordance with the provisions of laws administrative regulations departmental rules and the Articles of Association. Therefore the members of the ninth Board of Directors and Supervisory Committee are still performing their duties in a normal manner and the re-election of the Board of Directors and the Supervisory Committee would not have any adverse impact on the Company's operation and governance.XVII. Significant events of subsidiaries of the Company □ Applicable √ Not applicable 85CSGAnnual Report 2024 Section VII. Changes in Shares and Particulars about Shareholders I. Changes in Share Capital 1. Changes in Share Capital Unit: Share Before the Change Increase/Decrease in the Change (+ -) After the Change Capitaliz New Bonus ation of Amount Proportion shares Others Subtotal Amount Proportion shares public issued reserve I. Restricted shares 2043402 0.07% 12318 12318 2055720 0.07% 1. State-owned shares 2. State-owned legal person's shares 3. Other domestic shares 2043402 0.07% 12318 12318 2055720 0.07% Including: Domestic legal person's shares Domestic natural 20434020.07%123181231820557200.07% person's shares 4. Foreign shares Including: Foreign legal person's shares Foreign natural person's shares II. Unrestricted shares 3068648705 99.93% -12318 -12318 3068636387 99.93% 1. RMB Ordinary shares 1959279645 63.80% -12318 -12318 1959267327 63.80% 2. Domestically listed 110936906036.13%110936906036.13% foreign shares 3. Overseas listed foreign shares 4. Others III. Total shares 3070692107 100.00% 0 0 3070692107 100.00% Reason for equity changes √ Applicable □Not applicable During the report period China Securities Depository and Clearing Corporation Limited adjusted the locked-up shares of senior management in accordance with regulations and the Company's restricted shares and unrestricted shares changed accordingly.Approval on equity changes □Applicable √ Not applicable Transfer of ownership of changes in shares 86CSGAnnual Report 2024 □Applicable √ Not applicable Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to common shareholders of the Company in the latest year and period □Applicable √ Not applicable Other information necessary to be disclosed or need to be disclosed under requirement from security regulators □Applicable √ Not applicable 2. Changes of restricted shares √ Applicable □ Not applicable Unit: Share Number of Number of Number of Number of restricted restricted shares Shareholders' shares Reason for shares at the shares restricted at the Released date name increased in restriction beginning of released in the end of the the Period the period Period Period Releasing of executive lockup Executive lockup Chen Lin 1217299 1217299 stocks will be implemented stocks shares according to relevant policies.Releasing of executive lockup Executive lockup He Jin 673200 673200 stocks will be implemented stocks shares according to relevant policies.Releasing of executive lockup Executive lockup Wang Wenxin 115950 115950 stocks will be implemented stocks shares according to relevant policies.Releasing of executive lockup Executive lockup Chen Chunyan 36953 12318 49271 stocks will be implemented stocks shares according to relevant policies.合计20434021231802055720---- II. Issuance and listing of Securities 1. Security issued (excluding preferred stock) in the report period □Applicable √ Not applicable 2. Particulars about changes of total shares and shareholder structure as well as changes of assets and liability structure □ Applicable √ Not applicable 3. Existing internal staff shares □ Applicable √ Not applicable 87CSGAnnual Report 2024 III. Particulars about shareholder and actual controller of the Company 1. Amount of shareholders of the Company and particulars about shares holding Unit: Share Total preference Total Total preference shareholders with shareholders at shareholders with Total shareholders voting rights recovered the end of the voting rights at the end of the 138635 135699 0 at end of the month 0 month before recovered at end of report period before this annual this annual report period (if report disclosed (if report disclosed applicable) applicable) Shareholder with above 5% shares hold or top 10 shareholders (Excluding shares lent through refinancing) Amount Number of share Total shares Proportion Changes in of Amount of pledged marked or Nature of held at the end Full name of Shareholders of shares report restricted unrestricted frozen shareholder of report held period shares shares held period Share held Amountstatus Domestic non Foresea Life Insurance Co.state-owned 15.19% 466386874 0 0 466386874 Ltd. – HailiNiannian legal person Domestic non Shenzhen Sigma C&T Co.state-owned 3.92% 120385406 48081571 0 120385406 Ltd.legal person Foresea Life Insurance Co. Domestic non Ltd. – Universal Insurance state-owned 3.86% 118425007 0 0 118425007 Products legal person Domestic non Foresea Life Insurance Co.state-owned 2.11% 64765161 0 0 64765161 Ltd. – Own Fund legal person China Galaxy International Foreign legal Securities (Hong Kong) Co. 1.34% 41034578 0 0 41034578 person Limited Domestic non Zhongshan Runtian Pledged 18980000 state-owned 0.62% 18983447 0 0 18983447 Investment Co. Ltd.legal person Frozen 18983447 China Merchants Securities Foreign legal 0.59%18097811-16012026018097811 (Hong Kong) Limited person Hong Kong Securities Foreign legal 0.58%17754140-8441974017754140 Clearing Co. Ltd. person VANGUARD TOTAL Foreign legal INTERNATIONAL STOCK 0.57% 17537213 0 0 17537213 person INDEX FUND VANGUARD EMERGING Foreign legal MARKETS STOCK INDEX 0.57% 17434095 -2161478 0 17434095 person FUND Strategic investors or general legal person becomes top 10 shareholders due to shares N/A issued (if applicable) As of the end of the report period among shareholders as listed above Foresea Life Insurance Co. Ltd.-HailiNiannian Foresea Life Insurance Co. Ltd.-Universal Explanation on associated relationship Insurance Products Foresea Life Insurance Co. Ltd.-Own Fund are all held by Foresea among the aforesaid shareholders Life Insurance Co. Ltd. Shenzhen Jushenghua Co. Ltd. which holds 51% equity of Foresea Life Insurance Co. Ltd. holds 100% equity of Zhongshan Runtian Investment 88CSGAnnual Report 2024 Co. Ltd through Shenzhen Hualitong Investment Co. Ltd.Explanation of the above-mentioned shareholders involving entrusted/entrusted N/A voting rights and abstention from voting right Special instructions on the existence of special repurchase account among the top 10 N/A shareholders (if any) Particulars about top ten shareholders with unrestricted shares held (Excluding shares lent through refinancing and executive lock-in shares) Amount of unrestricted Type of shares Shareholders' name shares held at year-end Type Amount Foresea Life Insurance Co. Ltd. – HailiNiannian 466386874 RMB ordinary shares 466386874 Shenzhen Sigma C&T Co. Ltd. 120385406 RMB ordinary shares 120385406 Foresea Life Insurance Co. Ltd. – Universal Insurance Products 118425007 RMB ordinary shares 118425007 Foresea Life Insurance Co. Ltd. – Own Fund 64765161 RMB ordinary shares 64765161 China Galaxy International Securities (Hong Kong) Co. Domestically listed 4103457841034578 Limited foreign shares Zhongshan Runtian Investment Co. Ltd. 18983447 RMB ordinary shares 18983447 Domestically listed China Merchants Securities (Hong Kong) Limited 18097811 18097811 foreign shares Hong Kong Securities Clearing Co. Ltd. 17754140 RMB ordinary shares 17754140 VANGUARD TOTAL INTERNATIONAL STOCK INDEX Domestically listed 1753721317537213 FUND foreign shares VANGUARD EMERGING MARKETS STOCK INDEX Domestically listed 1743409517434095 FUND foreign shares As of the end of the report period among shareholders as listed above Foresea Life Insurance Co. Ltd.-HailiNiannian Foresea Life Insurance Co. Ltd.-Universal Statement on associated relationship or Insurance Products Foresea Life Insurance Co. Ltd.-Own Fund are all held by Foresea consistent action among the above Life Insurance Co. Ltd. Shenzhen Jushenghua Co. Ltd. which holds 51% equity of shareholders: Foresea Life Insurance Co. Ltd. holds 100% equity of Zhongshan Runtian Investment Co. Ltd through Shenzhen Hualitong Investment Co. Ltd.As of the end of the report period shareholder Shenzhen Sigma C&T Co. Ltd. holds 0 Explanation on shareholders involving shares of the Company through an ordinary account and 120385406 shares of the margin business (if applicable) Company through the customer credit transaction guarantee securities account of Huatai Securities Co. Ltd. totaling 120385406 shares of the Company.Special note: On July 11 2022 at the Company's Second Extraordinary General Meeting in 2022 Foresea Life Insurance Co. Ltd. voted in favor of all proposals and Zhongshan Runtian Investment Co. Ltd. voted against all proposals on August 3 2022 at the Company's Third Extraordinary General Meeting in 2022 Foresea Life Insurance Co. Ltd. voted in favor of all proposals and Zhongshan Runtian Investment Co. Ltd. voted against all proposals.Top 10 shareholders involved in refinancing shares lending □ Applicable √ Not applicable The top 10 shareholders and the top 10 shareholders of unlimited outstanding shares have changed from the previous period due to refinancing lending/restitution reasons □ Applicable √ Not applicable Whether the company's top 10 common shareholders and the top 10 shareholders of ordinary shares subject to unlimited sales have agreed to buy back transactions during the report period 89CSGAnnual Report 2024 □Yes √ No The top 10 shareholders of ordinary shares and the top 10 shareholders of ordinary shares with unrestricted sales conditions did not engage in any agreed repurchase transactions during the reporting period. 2. Controlling shareholder of the Company The nature of controlling shareholders: No holding body The type of controlling shareholder: Not exist Explanation on the Company without controlling shareholder Currently the Company has no controlling shareholder. Foresea Life Insurance Co. Ltd. is the Company's largest shareholder that has totally held 657577954 shares of the Company via Foresea Life Insurance Co. Ltd.– HailiNiannian Foresea Life Insurance Co. Ltd.–universal insurance products Foresea Life Insurance Co. Ltd.–own fund Foresea Life Insurance Co. Ltd.–a combination of its own funds together with Huatai till the end of the report period which accounts for 21.41% of the Company's total shares. Shenzhen Jushenghua Co. Ltd. with a 51% interest in the Company's shareholder Foresea Life Insurance Co. Ltd. holds a 51% interest in the Company's shareholder Shenzhen Guanlong Logistics Co. Ltd. via Shenzhen Hualitong Investment Co. Ltd. in addition to the holding of 100% equity interests in the Company's shareholders Zhongshan Runtian Investment Co. Ltd.. And Zhongshan Runtian Investment Co. Ltd. Shenzhen Guanlong Logistics Co. Ltd. and Foresea Life Insurance Co.Ltd. combined hold 676721401 shares in the Company accounting for 22.04% of the Company's total shares which is less than 30%. Meanwhile the number of directors recommended by the aforesaid shareholders was no more than half of the total number of members of the Company's Board of Directors.Other shareholders of the Company hold less than 5% of the shares.Changes of controlling shareholders in the report period □ Applicable √ Not applicable 3. Actual controller of the Company and its concerted actors The nature of the actual controller: no actual controller The type of actual controller: Not exist Explanation on the Company without actual controller Currently the Company has no actual controller. Foresea Life Insurance Co. Ltd. is the Company's largest shareholder that has totally held 657577954 shares of the Company via Foresea Life Insurance Co. Ltd.– HailiNiannian Foresea Life Insurance Co. Ltd.–universal insurance products Foresea Life Insurance Co. Ltd.–own fund Foresea Life Insurance Co. Ltd.–a combination of its own funds together with Huatai till the end of the report period which accounts for 21.41% of the Company's total shares. Shenzhen Jushenghua Co. Ltd. with a 51% interest in the Company's shareholder Foresea Life Insurance Co. Ltd. holds a 51% interest in the Company's shareholder Shenzhen Guanlong Logistics Co. Ltd. via Shenzhen Hualitong Investment Co. Ltd. in addition to the holding of 100% equity interests in the Company's shareholders Zhongshan Runtian Investment Co. Ltd.. And Zhongshan Runtian Investment Co. Ltd. Shenzhen Guanlong Logistics Co. Ltd. and Foresea Life Insurance Co.Ltd. combined hold 676721401 shares in the Company accounting for 22.04% of the Company's total shares which is less than 30%. Meanwhile the number of directors recommended by the aforesaid shareholders was no more than half of the total number of members of the Company's Board of Directors.Shareholders with over 10% shares held in ultimate controlling level √ Yes □No 90CSGAnnual Report 2024 □ Legal person √ Natural person Shares held in ultimate controlling level Whether to obtain the right of abode in Shareholders Nationality other countries or regions Yao Zhenhua China No Major occupations and duties Chairman of Shenzhen Baoneng Investment Group Co. Ltd.Situation of holding domestic and abroad N/A listed companies over the past 10 years Changes of actual controller in the report period □ Applicable √ Not applicable Property right and controlling relationship between the largest shareholder and the Company is as follow: Actual controller controlling of the Company by entrust or other assets management □Applicable √ Not applicable 4. The company's controlling shareholder or the largest shareholder and its concerted actor's cumulative pledged shares account for 80% of the company's shares held by them □ Applicable √ Not applicable 5. Particulars about other legal person shareholders holding over 10% of the company's shares □ Applicable √ Not applicable 91CSGAnnual Report 2024 6. Limitation on share reduction of controlling shareholders actual controllers recombination party and other commitment subjects □ Applicable √ Not applicable IV. Specific implementation of share repurchase in the report period Implementation progress of share repurchase □ Applicable √ Not applicable Implementation progress of reducing share repurchased by centralized bidding □ Applicable √ Not applicable 92CSGAnnual Report 2024 Section VIII. Preferred shares □Applicable √ Not applicable There were no preferred shares in the Company during the report period. 93CSGAnnual Report 2024 Section IX. Bonds √ Applicable □ Not applicable I. Enterprise bonds □Applicable √ Not applicable The Company had no enterprise bonds during the report period.II. Corporate bonds √ Applicable □ Not applicable The company had no corporate bonds during the reporting period.III. Debt instruments as a non-financial enterprise √ Applicable □ Not applicable 1.Basic information about corporate bonds Unit: RMB 0000 Way of principal Date of Outstandin Interes repaymen Place of Bond name Abbr. Bond code Value date Maturity issuance g balance t rate t and trading interest payment The First Super & Short-term Principal Commercial 24 CSG and Paper SCP001 Inter-bank December December September interest (Technology (Technology 012483920 30000 2.4% bond 12 2024 13 2024 9 2025 payable in Innovation Innovation market full upon Note) in 2024 of Note) maturity CSG Holding Co. Ltd.For institutional investors in the national inter-bank bond market (except those Investor eligibility arrangements (if any) prohibited from purchasing by national laws or regulations) Trading system applicable Public trading such as inquiry-based trading Risk of termination of listing and trading (if No any) and countermeasures Overdue bonds □ Applicable √ Not applicable 2. Triggering and execution of issuer or investor option clauses and investor protection clauses □ Applicable √ Not applicable 94CSGAnnual Report 2024 3. Intermediary agencies Accountant Bond name Intermediary agency Office address Contact person Tel.writing signature Industrial Bank Building 24 CSG SCP001 Lead underwriter: No. 398 Jiangbin Middle He Zicong and (Technology Industrial Bank Co. - 0755-82989122 Avenue Fuzhou City Fujian Li Keyan Innovation Note) Ltd.Province 24 CSG SCP001 Joint lead underwriter: No.218 Haihe East Road (Technology China Bohai Bank - Wang Hongren 0755-33081770 Hedong District Tianjin Innovation Note) Co. Ltd.Credit rating agency: 24 CSG SCP001 Room 60101 Tower 1 No. Wang Yingying China Chengxin (Technology 2 Nanzhugan Alley - and Yang 010-66428877 International Credit Innovation Note) Dongcheng District Beijing Yuqian Rating Co. Ltd.Units 01 02 03 and 05 5/F 24 CSG SCP001 Office Building of Raffles Shu Zhitang Xie Law firm: Beijing (Technology City Beijing No. 1 South - Bing and Ye 010-56500900 Merits Tree Law Firm Innovation Note) Street Dongzhimen Maoxin Dongcheng District Beijing Change of the agencies in the table above during the report period □ Yes √ No 4. Use of raised funds Unit: RMB 0000 In compliance Status of the Rectification for with the purpose Total special Agreed purpose of Amount Amount any irregularity (if use plan and Bond name amount account for raised funds used unused any) in the use of other information raised raised funds raised funds stated in the (if any) prospectus To repay interest- 24 CSG SCP001 bearing liabilities of (Technology 30000 30000 0 None None Yes the issuer and its Innovation Note) subsidiaries Use of raised funds in construction projects □ Applicable √ Not applicable Indicate whether the raised funds were re-purposed during the report period □ Applicable √ Not applicable 5. Adjustment of credit rating results during the report period □Applicable √ Not applicable 6. The implementation and changes of guarantees debt repayment plans and other debt repayment guarantee measures during the reporting period and their impact on the rights and interests of bond investors □Applicable √ Not applicable 95CSGAnnual Report 2024 IV. Convertible corporate bonds □Applicable √ Not applicable During the report period the Company did not have convertible corporate bonds.V. The loss within the scope of consolidated statements in the report period exceeded 10% of the net assets at the end of the previous year □Applicable √ Not applicable VI. Overdue situation of interest-bearing debts other than bonds at the end of the report period □Applicable √ Not applicable VII. Whether there is any violation of rules and regulations during the reporting period □ Yes √ No VIII. Key financial information of the Company in the past two years Unit: RMB 0000 Item December 31 2024 December 31 2023 Change Current ratio 0.95 1.05 -9.52% Debt/asset ratio 55.15% 52.12% 3.03% Quick ratio 0.79 0.87 -9.20% 2024 2023 Change Net profit after deducting non- 10162142668-92.88% recurring gains and losses EBITDA/debt ratio 15.23% 30.61% -15.38% Interest cover (times) 1.76 7.45 -76.38% Cash-to-interest cover (times) 9.07 13.73 -33.94% EBITDA-to-interest cover (times) 6.17 12.46 -50.48% Loan repayment ratio (%) 100.00% 100.00% - Interest payment ratio (%) 100.00% 100.00% - 96CSGAnnual Report 2024 Section X. Financial Report I. Report of the Auditors Type of Auditor’s Opinion Standard and unqualified Issue date of Report of the Auditors April 24 2025 Name of Auditor’s organization Grant Thornton Zhitong Certified Public Accountants LLP Reference number of Report of the Auditors GTCNSZ（2025）NO.441A015141 Name of CPA Yang Hua Deng Jinchao Auditor’s Report To the shareholders of CSG Group Co. Ltd .I. Opinion We have audited the financial statements of CSG Holding Co. Ltd. (hereinafter referred to as "the Group") which comprise the consolidated and company balance sheets as of December 31 2024 and the consolidated and company statements of profit or loss consolidated and company statements of cash flows consolidated and company statements of changes in equity and related notes to the financial statements for the year then ended.In our opinion the accompanying financial statements present fairly in all material respects the consolidated and company financial position of the Group as of December 31 2024 and the consolidated and company financial performance and cash flows for the year then ended in accordance with the Chinese Accounting Standards for Business Enterprises (ASBE).II. Basis for Forming Audit Opinion We conducted our audit in accordance with the Chinese Standards on Auditing as applicable in China. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Group in accordance with the Code of Ethics for Professional Accountants in China and have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.III. Key Audit Matters Key audit matters are those matters that in our professional judgment are of the most 97CSGAnnual Report 2024 significance in our audit of the financial statements for the current period. These matters were addressed in the context of our audit of the financial statements as a whole and in forming our opinion thereon we do not provide a separate opinion on these matters.(I) Revenue recognition For detailed disclosures please refer to notes to the financial statements . 1. Matter Description The Group's sales revenue primarily comes from providing float glass photovoltaic glass architectural glass solar industry-related products electronic glass and display devices to customers. In the fiscal year 2024 the Group achieved operating revenue of 15455386401 yuan . Since revenue is one of the Group's key performance indicators and has a crucial impact on the financial statements we identified revenue recognition as a key audit matter. 2. Audit Response We performed the following audit procedures mainly related to revenue recognition: (1) Understanding and evaluating the design of internal controls related to revenue recognition and testing the effectiveness of key control processes. (2) Sampling inspection of significant sales contracts to identify contract terms and conditions related to the control transfer point and assess whether the specific method of revenue recognition by the Group complies with the Chinese Accounting Standards for Business Enterprises (ASBE). (3) Substantive analytical procedures on operating revenue and gross profit margins by month product customer etc. to identify significant or abnormal fluctuations and analyze the reasons for the fluctuations. (4) Selecting samples and performing detailed testing on sales revenue for the current period reviewing sales contracts verifying supporting documents related to revenue recognition (including orders delivery notes customs declarations invoices etc.) and confirming the authenticity and accuracy of revenue in conjunction with customer sales receipts. (5) Employing sampling to select customers and performing circularization procedures on their annual transaction amounts and accounts receivable balances. (6) Conducting cutoff tests on revenue recognized before and after the balance sheet date obtaining relevant supporting documents verifying key timing points of revenue recognition 98CSGAnnual Report 2024 to ascertain whether revenue is recognized in the appropriate period. (7) Checking whether revenue-related information has been appropriately presented and disclosed in the financial statements.(II) Provision for impairment of fixed assets and construction in progress For detailed disclosures please refer to notes to the financial statements . 1. Matter Description As of December 312024 the book value of fixed assets in the consolidated financial statements of the Group was RMB 13166391449 accounting for 42.17% of the total assets of the consolidated financial statements and the book value of construction in progress was RMB 5350375132 accounting for 17.14 % of the total assets of the consolidated financial statements ; the impairment loss of fixed assets accrued during the reporting period was RMB 256805904 and the impairment loss of construction in progress was RMB 174171999 . The management of CSG Group (hereinafter referred to as the management) evaluated whether there were signs of impairment of such fixed assets and construction in progress; for fixed assets and construction in progress with signs of impairment the management estimated the recoverable amount of fixed assets and construction in progress and compared the recoverable amount with the book value to confirm the amount of impairment provision to be accrued. As the identification of impairment signs of fixed assets and construction in progress and the measurement of recoverable amounts involve significant accounting estimates and professional judgments of management we regard the provision for impairment of fixed assets and construction in progress as a key audit matter. 2. Audit Response We performed the following audit procedures mainly related to the provision for impairment of fixed assets: (1) Understood and evaluated the internal control design related to the management of fixed assets and projects under construction and tested the effectiveness of the operation of key control processes; (2) Reviewing the methods and assumptions used by the Group for impairment testing of fixed assets and construction in progress and evaluate whether the asset impairment methods used by management comply with the requirements of the Chinese Accounting Standards for Business Enterprises (ASBE); 99CSGAnnual Report 2024 (3) Physically inspecting fixed assets and projects under construction to observe their storage and usage status; (4) Recalculate the recoverable amounts of fixed assets and construction in progress and have certified public accountant valuation experts review the valuation methods and key assumptions used by the external valuation agency hired by the management; (5) Evaluating the competence professionalism and objectivity of the assessment experts appointed by management and the assessment experts appointed by registered accountants.IV. Other Matters The management of CSG Holding Co. Ltd. is responsible for other information. Other information includes the information covered in the 2024 annual report of CSG Holding Co.Ltd. but excludes the financial statements and our audit report.Our audit opinion on the financial statements does not cover other information and we do not provide any form of assurance conclusion on other information.In conjunction 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 our knowledge obtained during the audit process or appears to be materially misstated.If we determine based on the work we have performed that other information is materially misstated we should report that fact. We have nothing to report in this regard.V. Responsibilities of management and governance for the financial statements The management of CSG Holding Co. Ltd. is responsible for preparing the financial statements in accordance with the Chinese Accounting Standards for Business Enterprises (ASBE) to achieve fair presentation and for designing implementing and maintaining internal control necessary 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 intends to liquidate the Group cease operations or have no other realistic option.The governance is responsible for overseeing the financial reporting process of CSG 100CSGAnnual Report 2024 Holding Co. Ltd..VI. Certified Public Accountants’ Responsibilities for Auditing 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 our audit opinion. Reasonable assurance is a high level of assurance but it is not a guarantee that an audit conducted in accordance with auditing standards will always detect a material misstatement when it exists. Misstatements can result from fraud or error and they are considered material if it could reasonably be expected that individually or in the aggregate they would influence the economic decisions of users taken on the basis of the financial statements.In the process of performing audit work in accordance with auditing standards we exercise professional judgment and maintain professional skepticism. At the same time we also perform the following tasks: (1) Identify and assess the risk of material misstatement of the financial statements due to fraud or error design and implement audit procedures to address these risks and obtain sufficient and appropriate audit evidence as a basis for issuing the audit opinion. Since fraud may involve collusion forgery intentional omissions misrepresentations or override of internal controls the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting a material misstatement due to error. (2) Understand internal controls related to the audit and design appropriate audit procedures accordingly. (3) Evaluate the appropriateness of management's selection of accounting policies and the reasonableness of accounting estimates and related disclosures. (4) Conclude on the appropriateness of management's use of the going concern assumption. At the same time based on the audit evidence obtained conclude whether there is a significant uncertainty that may cast significant doubt on the Group's ability to continue as a going concern. If we conclude that there is a significant uncertainty auditing standards require us to draw attention in the audit report to the related disclosures in the financial statements; if the disclosures are inadequate we should issue a modified audit opinion. Our conclusion is based on information available as of the date of the audit report. However future events or circumstances may cause the Group to be unable to continue as a going concern. 101CSGAnnual Report 2024 (5) Evaluate the overall presentation structure and content of the financial statements and assess whether the financial statements reflect the transactions and events relevant to them fairly. (6) Obtain sufficient and appropriate audit evidence regarding the financial information of entities or business activities within the CSG Holding Co. Ltd. in order to issue an audit opinion. We are responsible for directing supervising and executing the group audit and we bear full responsibility for the audit opinion.We communicate with governance regarding matters such as the planned scope of the audit timing of the audit and significant audit findings including significant internal control deficiencies identified during the audit.We also provide a statement to governance regarding compliance with professional ethical requirements related to independence and communicate with governance all relationships and other matters that may be reasonably considered to affect our independence as well as the safeguards implemented in relation to these matters.From the matters communicated with governance we determine which matters are of most significance in our audit of the financial statements for the current period and thus constitute key audit matters. We describe these matters in the audit report unless prohibited by laws and regulations from publicly disclosing them or in very rare cases if it is reasonably expected that communicating a matter in the audit report would cause negative consequences outweighing the benefits in the public interest.Grant Thornton Zhitong Certified Public Certified Public Accountant of Accountants LLP China (Engagement Partner) Beijing China? Certified Public Accountant of China April 24 2025 102CSGAnnual Report 2024 103CSGAnnual Report 2024 104CSGAnnual Report 2024 105CSGAnnual Report 2024 106CSGAnnual Report 2024 107CSGAnnual Report 2024 108CSGAnnual Report 2024 109CSGAnnual Report 2024 110CSGAnnual Report 2024 Financial Statement Notes I. Basic information of the company CSG HOLDING CO. LTD. (hereinafter referred to as the "Group") formerly known as CSG CO. LTD. is invested by China Merchants Steam Navigation CompanyLtd Shenzhen Building Materials Industry (Group) CompanyChina North Industries Shenzhen Corp.and Guangdong International Trust &Investment Co. Ltd.which is a Chinese-foreign joint venture and established in September 1984.The Group is registered and headquartered in ShenzhenGuangdong Province the People's Republic of China.The Group publicly issued RMB ordinary shares ("A shares") and foreign shares ("B shares") to the public in October 1991 and January 1992 respectively and listed them on the Shenzhen Stock Exchange ("Shenzhen Stock Exchange") in February 1992. "") listed for trading. As of 31 December 2024 the total share capital of the Group was 3070692107 yuan with a par value of 1 yuan per share.The main business of the Group and its subsidiaries (hereinafter collectively referred to as the "Group") are production and sales of float glass photovoltaic glass special glass engineering glass energy-saving and glass-based energy products and production of polysilicon and solar modules. and sales production and sales of electronic glass and display device and construction and operation of photovoltaic power plants etc.These financial statements and notes to the financial statements were approved for issuance by the Group's Board of Directors on 24 April 2025 .Please refer to the notes for details of the main subsidiaries included in the scope of consolidation this year.II. Basis of preparation of financial statements These financial statements are prepared in accordance with the Accounting Standards for Business Enterprises and their application guidelines interpretations and other relevant regulations issued by the Ministry of Finance (collectively: " Accounting Standards for Business Enterprises " ). In addition the Group also discloses relevant financial information in accordance with the China Securities Regulatory Commission's "Information Disclosure and Preparation Rules for Companies that Offer Securities to the Public No. 15 - General Provisions on Financial Reports ( Revised in 2023 ) ".These financial statements have been prepared 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 on a historical cost basis.If an asset is impaired corresponding impairment provisions will be made in accordance with relevant regulations.III. Significant accounting policies and accounting estimates The depreciation of fixed assets amortization of intangible assets capitalization conditions for R&D expenses and revenue recognition policies based on its own production and operation characteristics. For specific accounting policies please refer to notes to the financial statements. 111CSGAnnual Report 2024 1、Statement on compliance with corporate accounting standards This financial statement complies with the requirements of the Accounting Standards for Business Enterprises and truly and completely reflects the Group 's consolidated and company financial status as of December 31 2024 as well as the consolidated and company operating results consolidated and company cash flows and other relevant information in 2024. 2、Accounting period The Group adopts the Gregorian calendar year that is from January 1 to December 31 each year. 3、Business cycle The Group's operating cycle is 12 months. 4、Reporting currency The Group and its domestic subsidiaries use RMB as their functional currency for accounting.The Group's overseas subsidiaries determine their recording currency based on the currency of the main economic environment in which they operate. The currency used by the Group in preparing these financial statements is RMB. 5、Materiality criteria determination method and selection basis Item Materiality Criteria Significant single provision for bad debts in accounts The amount of individual accounts receivable receivable provision accounts for over 5% of the combined accounts receivable balance Significant single provision for bad debts in other The amount of individual other receivables provision receivables accounts for over 10% of the combined other receivables balance Significant write-off of accounts receivable/other The impact on the company's current profit and loss receivables accounts for over 5% of the net profit absolute value for the most recent audited fiscal year and exceeds 1 million yuan in absolute amount Significant construction in progress The budgeted investment amount accounts for over 5% of the recent audited attributable equity to the parent company Significant non-wholly owned subsidiaries The subsidiary's total assets account for over 5% of the consolidated total assets 6、Accounting treatment methods for business combinations under the same control and those not under the same control （1）Business combination under common control For business mergers under common control the assets and liabilities of the merged party acquired by the merging party during the merger shall be measured based on the book value of the merged party in the consolidated financial statements of the ultimate controlling party on the merger date. The difference between the book value of the merger consideration (or the total face value of the shares issued) and the book value of the net assets obtained in the merger is adjusted to the capital reserve (share premium). If the capital reserve (share premium) is insufficient to offset it the retained earnings are adjusted. 112CSGAnnual Report 2024 The merger of enterprises under the same control is realized step by step through multiple transactions.The assets and liabilities of the merged party acquired by the merging party in the merger shall be measured based on the book value in the consolidated financial statements of the ultimate controlling party on the date of merger; the book value of the investments held before the merger plus the book value of the newly paid consideration on the date of merger The difference between the sum and the book value of the net assets obtained in the merger shall be adjusted to the capital reserve (equity premium) . If the capital reserve is insufficient for offset the retained earnings shall be adjusted. The long-term equity investment held by the merging party before it obtained control of the merged party has been confirmed to be relevant between the date of acquiring the original equity and the date when the merging party and the merged party are under the final control of the same party whichever is later to the date of merger. Changes in profits and losses other comprehensive income and other owners' equity should be offset against the opening retained earnings or current profits and losses during the comparative statement period respectively. （2）Business combination not under common control For business combinations not under common control the combination cost shall be the assets paid liabilities incurred or assumed and the fair value of equity securities issued to obtain control of the purchased party on the acquisition date. On the purchase date the acquired assets liabilities and contingent liabilities of the purchased party are recognized at fair value.If the merger cost is greater than the fair value share of the acquiree's identifiable net assets obtained in the mergerThe difference is recognized as goodwill and is subsequently measured at cost less accumulated impairment reserves; if the merger cost is less than the acquiree's identifiable net assets acquired in the merger the difference is recognized as goodwill. The difference between the fair value of the net assets will be included in the current profit and loss after review.The merger of enterprises not under common control is realized step by step through multiple transactions.The merger cost is the sum of the consideration paid on the purchase date and the fair value of the purchased party's equity held before the purchase date on the purchase date. For the equity of the purchased party that has been held before the purchase date it will be remeasured according to the fair value of the equity on the purchase date and the difference between the fair value and its book value will be included in the investment income of the current period; The purchaser's equity held before the purchase date involves other comprehensive income changes in other owners' equity are converted into current income on the purchase date other comprehensive income arising from the investee's remeasurement of the net liabilities or changes in net assets of the defined benefit plan and other comprehensive income originally designated as fair value Except for other comprehensive income related to investments in non-trading equity instruments that are measured and whose changes are included in other comprehensive income. （3）Handling of Transaction Costs in Business Combinations Intermediary fees such as auditing legal services evaluation and consulting and other related management fees incurred for business mergers are included in the current profit and loss when incurred. The transaction costs of equity securities or debt securities issued as 113CSGAnnual Report 2024 consideration for the merger shall be included in the initial recognition amount of the equity securities or debt securities. 7、Judgment standards for control and methods for preparing consolidated financial statements （1）Control criteria The scope of consolidation in consolidated financial statements is determined based on control. Control means that the Group has power over the invested unit enjoys variable returns by participating in the relevant activities of the invested unit and has the ability to use its power over the invested unit to affect its return amount. The Group will reassess when changes in relevant facts and circumstances lead to changes in the relevant elements involved in the definition of control.When judging whether to include structured entities into the scope of consolidation the Group comprehensively considers all facts and circumstances including assessing the purpose and design of the structured entities identifying the types of variable returns and whether it bears part or all of the returns by participating in its related activities. Evaluate whether the structured entity is controlled based on variability etc. （2）Methods of preparing consolidated financial statements The consolidated financial statements are based on the financial statements of the Group and its subsidiaries and are prepared by the Group based on other relevant information. When preparing consolidated financial statements the accounting policies and accounting period requirements of the Group and its subsidiaries are consistent and significant inter-company transactions and balances are offset.Subsidiaries and businesses that are added due to business combinations under the same control during the reporting period are deemed to be included in the scope of consolidation of the Group from the date they are both controlled by the ultimate controlling party. The operating results and cash flows from the date of the announcement are included in the consolidated income statement and consolidated cash flow statement respectively.For subsidiaries and businesses that are added due to business combinations not under common control during the reporting period the income expenses and profits of the subsidiaries and businesses from the date of acquisition 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 part of the subsidiary's shareholders' equity that is not owned by the Group is listed separately as minority shareholders' equity in the consolidated balance sheet under shareholders' equity; the share of the subsidiary's current net profit and loss that is minority shareholders' equity is listed in the consolidated income statement. The net profit item is listed under the item "Profits and losses of minority shareholders" . If the losses of a subsidiary shared by minority shareholders exceed the minority shareholders' share of the opening owner's equity of the subsidiary the balance will still offset the minority shareholders' equity. （3）Purchase of minority shareholders' equity in subsidiaries The difference between the newly acquired long-term equity investment cost due to the purchase of minority shares and the share of the subsidiary's net assets calculated continuously from the date of purchase or merger based on the new shareholding ratio and 114CSGAnnual Report 2024 without losing control The difference between the disposal price obtained from the partial disposal of the equity investment in the subsidiary and the corresponding share of the subsidiary's net assets calculated continuously from the date of purchase or merger date corresponding to the disposal of the long-term equity investment shall be adjusted in the consolidated balance sheet. Capital reserve (equity premium/capital premium) if the capital reserve is insufficient to offset the retained earnings will be adjusted. （4）Treatment of Loss of Control of Subsidiaries If the control over the original subsidiary is lost due to the disposal of part of the equity investment or other reasons the remaining equity shall be remeasured according to its fair value on the date of loss of control; the sum of the consideration obtained from the disposal of the equity and the fair value of the remaining equity shall be less Calculated based on the original shareholding ratio the sum of the share of the book value of the net assets and goodwill of the original subsidiary calculated continuously from the date of purchase shall be included in the investment income in the current period when control is lost.Other comprehensive income related to the equity investment of the original subsidiary should be accounted for on the same basis as the original subsidiary's direct disposal of relevant assets or liabilities when the control is lost. Any income related to the original subsidiary that involves accounting under the equity method other changes in owners' equity should be transferred to the current profits and losses when control is lost. 8、Determining criteria for cash and cash equivalents Cash refers to cash on hand and deposits that can be used for payment at any time. Cash equivalents refer to investments held by the Group that are short-term highly liquid easily convertible into known amounts of cash and have little risk of value changes. 9、Foreign currency business and foreign currency statement conversion （1）Foreign currency business The Group's foreign currency business is converted into the recording currency amount based on the spot exchange rate on the date of the transaction.On the balance sheet date foreign currency monetary items are converted using the spot exchange rate on the balance sheet date. The exchange difference 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 is included in the current profit and loss; for foreign currency non-monetary items measured at historical cost the spot exchange rate on the date of the transaction is still used The foreign currency non-monetary items measured at fair value shall be converted at the spot exchange rate on the date when the fair value is determined. The difference between the converted accounting functional currency amount and the original accounting functional currency amount shall be converted according to the non-monetary accounting currency amount. The nature of monetary items is included in current profits and losses or other comprehensive income. （2）Translation of foreign currency financial statements On the balance sheet date when converting the foreign currency financial statements of overseas subsidiaries the asset and liability items in the balance sheet are translated using the spot exchange rate on the balance sheet date. Except for "undistributed profits" shareholders' 115CSGAnnual Report 2024 equity items include other items. Converted using the spot exchange rate on the date of occurrence.Income and expense items in the income statement are translated using the spot exchange rate on the date of transaction.All items in the cash flow statement are translated according to the spot exchange rate on the date when the cash flow occurs. The impact of exchange rate changes on cash is regarded as an adjustment item and is reflected in the "Impact of exchange rate changes on cash and cash equivalents" separately in the cash flow statement.Differences arising from the translation of financial statements are reflected in the "other comprehensive income" item under the shareholders' equity item in the balance sheet.When an overseas operation is disposed of and control is lost the translation difference of the foreign currency statements listed under the shareholders' equity item in the balance sheet and related to the overseas operation shall be transferred to the current profit and loss of the disposal in full or in proportion to the disposal of the overseas operation. 10、Financial instruments A financial instrument is a contract that forms 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.Financial assets shall be derecognized if they meet one of the following conditions: * The contractual right to receive cash flows from the financial asset terminates; * The financial asset has been transferred and meets the following conditions for derecognition of financial asset transfer.If the current obligation of a financial liability has been discharged in whole or in part the financial liability or part of it shall be derecognised. If the Group (debtor) signs an agreement with its creditors to replace existing financial liabilities by assuming new financial liabilities and the contract terms of the new financial liabilities are substantially different from the existing financial liabilities the existing financial liabilities will be derecognized and the new financial liabilities will be recognized at the same time.When financial assets are bought and sold in a regular manner accounting recognition and derecognition will be carried out based on the transaction date. （2）Classification and measurement of financial assets Upon initial recognition the Group classifies financial assets into the following three categories based on the business model of managing financial assets and the contractual cash flow characteristics of financial assets: financial assets measured at amortized cost financial assets measured at fair value through other comprehensive income and financial assets measured at fair value through profits and losses. 116CSGAnnual Report 2024 Financial assets are measured at fair value upon initial recognition. For financial assets measured at fair value through profit and loss the relevant transaction costs are directly included in the current profit and loss; for other types of financial assets the relevant transaction costs are included in the initial recognition amount. For receivables arising from the sale of products or provision of services that do not include or take into account significant financing components the amount of consideration that the Group is expected to be entitled to receive shall be deemed as the initial recognition amount.Financial assets measured at amortized cost The Group classifies financial assets that meet the following conditions and are not designated as measured at fair value through profit or loss as financial assets measured at amortized cost: * The Group's business model for managing this financial asset is aimed at collecting contractual cash flows; * The contractual terms of the financial asset provide that the cash flows generated on a specific date are solely 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 rate method. Gains or losses arising from financial assets that are measured at amortized cost and are not part of any hedging relationship are included in the current profit and loss when they are derecognized amortized according to the effective interest method or impairment is recognized.Financial assets measured at fair value through other comprehensive income The Group classifies financial assets that meet the following conditions and are not designated as measured 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 assets aims at both collecting contractual cash flows and selling the financial assets; * The contractual terms of the financial asset provide that the cash flows generated on a specific date are solely payments of principal and interest based on the outstanding principal amount.After initial recognition such financial assets are subsequently measured at fair value. Interest impairment losses or gains and exchange gains and losses calculated using the effective interest rate method are included in the current profit and loss and other gains or losses are included in other comprehensive income. When derecognition is terminated the accumulated gains or losses previously included in other comprehensive income will be transferred out of other comprehensive income and included in the current profit and loss.Financial assets measured at fair value through profits and losses Except for the above-mentioned financial assets measured at amortized cost and at fair value through other comprehensive income the Group classifies all remaining financial assets as financial assets at fair value through profit or loss. At the time of initial recognition in order to eliminate or significantly reduce accounting mismatches the Group irrevocably designated 117CSGAnnual Report 2024 some financial assets that should have been measured at amortized cost or at fair value through other comprehensive income as financial assets measured through profits and losses.After initial recognition such financial assets are subsequently measured at fair value and the resulting gains or losses (including interest and dividend income) are included in the current profits and losses unless the financial assets are part of a hedging relationship.The business model for managing financial assets refers to how the Group manages financial assets to generate cash flow. The business model determines whether the source of cash flow from the financial assets managed by the Group is collection of contractual cash flow sale of financial assets or both. The Group determines the business model for managing financial assets based on objective facts and specific business objectives for managing financial assets determined by key management personnel.The Group evaluates 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 are only payments of principal and interest based on the outstanding principal amount. Among them principal refers to the fair value of the financial asset at the time of initial recognition; interest includes consideration for the time value of money the credit risk associated with the outstanding principal amount in a specific period and other basic lending risks costs and profits. In addition the Group evaluates contract terms that may cause changes in the time distribution or amount of contractual cash flows of financial assets to determine whether they meet the requirements of the above contractual cash flow characteristics.Only when the Group changes its business model for managing financial assets all affected relevant financial assets will be reclassified on the first day of the first reporting period after 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 through profit and loss the relevant transaction costs are directly included in the current profit and loss; for other types of financial assets the relevant transaction costs are included in the initial recognition amount. For accounts receivable arising from the sale of products or provision of services that do not include or take into account significant financing components the amount of consideration that the Group is expected to be entitled to receive shall be deemed as the initial recognition amount. （3）Classification and measurement of financial liabilities The Group's financial liabilities are classified upon initial recognition into: financial liabilities measured at fair value through profit or loss and financial liabilities measured at amortized cost. For financial liabilities that are not classified as measured at fair value through profit and loss relevant transaction costs are included in their initial recognition amount.Financial liabilities measured at fair value through profit or loss Financial liabilities at fair value through profit or loss include trading financial liabilities and financial liabilities designated as fair value through profit or loss upon initial recognition.Such financial liabilities are subsequently measured at fair value and gains or losses arising from changes in fair value as well as dividends and interest expenses related to such financial liabilities are included in the current profits and losses.Financial liabilities measured at amortized cost. 118CSGAnnual Report 2024 Other financial liabilities adopt the actual interest rate method and are subsequently measured at amortized cost. Gains or losses arising from derecognition or amortization are included in the current profits and losses.The difference between financial liabilities and equity instruments Financial liabilities refer to liabilities that meet one of the following conditions: * Contractual obligation to deliver cash or other financial assets to other parties.* Contractual obligations to exchange financial assets or financial liabilities with other parties under potentially adverse conditions.* Non-derivative contracts that must or can be settled with the enterprise's own equity instruments in the future and the enterprise will deliver a variable number of its own equity instruments according to the contract.* Derivative contracts that must or can be settled with the enterprise's own equity instruments in the future except for derivative contracts that exchange a fixed number of its own equity instruments for a fixed amount of cash or other financial assets.Equity instruments refer to contracts that prove ownership of the remaining equity in the assets of an enterprise after deducting all liabilities.If the Group cannot unconditionally avoid delivering cash or other financial assets to fulfill a contractual obligation the contractual obligation meets the definition of a financial liability.If a financial instrument must be settled or can be settled with the Group's own equity instruments it is necessary to consider whether the Group's own equity instruments used to settle the instrument are used as a substitute for cash or other financial assets or to enable the holders of the instrument to The remaining interest in the issuer's assets after deducting all liabilities. If it is the former the instrument is a financial liability of the Group; if it is the latter the instrument is an equity instrument of the Group. （4）Fair value of financial instruments Please refer to notes to the financial statements for the method of determining the fair value of financial assets and financial liabilities. （5）Impairment of financial assets Based on expected credit losses the Group performs impairment accounting on the following items and recognizes loss provisions: * Financial assets measured at amortised cost; * Receivables and debt investments measured at fair value through other comprehensive income; * Contract assets as defined in "Accounting Standards for Business Enterprises No. 14 - Revenue "; * Lease receivables; 119CSGAnnual Report 2024 * Financial guarantee contracts (except those that are measured at fair value and whose changes are included in current profits and losses the transfer of financial assets does not meet the conditions for derecognition or the financial assets continue to be involved in the transferred financial assets).Measurement of expected credit losses Expected credit losses refer to the weighted average of the credit losses of financial instruments with the risk of default as the weight. Credit loss refers to the difference between all contractual cash flows receivable under the contract and all cash flows expected to be received by the Group discounted at the original effective interest rate that is the present value of all cash shortfalls.The Group considers reasonable and well-founded information about past events current conditions and predictions of future economic conditions and weights the risk of default to calculate the difference between the cash flows receivable under the contract and the cash flows expected to be received. The probability-weighted amount of the present value is recognized as the expected credit loss.The Group measures the expected credit losses of financial instruments at different stages respectively. If the credit risk of a financial instrument has not increased significantly since initial recognition it is in the first stage and the Group will measure loss provisions based on the expected credit losses in the next 12 months; if the credit risk of a financial instrument has increased significantly since initial recognition but has not yet occurred If the financial instrument is credit-impaired it is in the second stage and the Group measures the loss provision based on the expected credit losses for the entire duration of the instrument; if the financial instrument has been credit-impaired since initial recognition it is in the third stage and the Group measures the expected credit losses for the entire duration of the instrument.The expected credit losses during the duration are measured as loss provisions.For financial instruments with low credit risk on the balance sheet date the Group assumes that its credit risk has not increased significantly since initial recognition and measures loss provisions based on expected credit losses within the next 12 months.Lifetime expected credit losses refer to the expected credit losses caused by all possible default events that may occur during the entire expected life of a financial instrument.Expected credit losses in the next 12 months refer to the default events of financial instruments that may occur within 12 months after the balance sheet date (if the expected duration of the financial instrument is less than 12 months the expected duration) Expected credit losses are part of the expected credit losses throughout the entire duration.When measuring expected credit losses the maximum period that the Group needs to consider is the longest contract period for which the enterprise faces credit risk (including consideration of renewal options).For financial instruments in the first and second stages and with lower credit risk the Group calculates interest income based on its Carrying Amount before impairment provisions and actual interest rate. For financial instruments in the third stage interest income is calculated based on its Carrying Amount minus the amortized cost and actual interest rate after impairment provisions have been made.For receivables such as notes receivable accounts receivable receivable financing other receivables and contract assets if the credit risk characteristics of a certain customer are 120CSGAnnual Report 2024 significantly different from other customers in the portfolio or the credit risk of the customer If the characteristics of the receivables change significantly the Group shall make a separate provision for bad debts for the receivables. In addition to the receivables for which bad debt provisions are made individually the Group divides the receivables into groups based on credit risk characteristics and calculates bad debt provisions on a group basis.Notes receivable accounts receivable and contract assets For notes receivable and accounts receivable regardless of whether there is a significant financing component the Group always measures its loss provisions at an amount equivalent to the expected credit losses during the entire duration.When the information on expected credit losses cannot be assessed at a reasonable cost for a single financial asset the Group divides notes receivable and accounts receivable into groups based on credit risk characteristics and calculates expected credit losses on the basis of the groups. The basis for determining the group is as follows: A. Notes receivable * Notes receivable portfolio 1: Bank acceptance bills * Notes receivable portfolio 2: Commercial acceptance bills B. Accounts receivable * Accounts receivable portfolio 1: non-related party customers * Accounts receivable portfolio 2: related party customers For notes receivable and contract assets divided into portfolios the Group refers to historical credit loss experience combined with current conditions and predictions of future economic conditions and calculates expected credit losses through default risk exposure and the expected credit loss rate throughout the duration.For accounts receivable divided into portfolios the Group refers to historical credit loss experience combined with current conditions and predictions of future economic conditions to prepare a comparison table between the aging/overdue days of accounts receivable and the expected credit loss rate for the entire duration. Calculate expected credit losses. The aging of accounts receivable is calculated from the date of confirmation / the number of overdue days is calculated from the date of expiration of the credit period.Other receivables The Group divides other receivables into several combinations based on credit risk characteristics and calculates expected credit losses on the basis of the combinations. The basis for determining the combinations is as follows: * Other receivables portfolio 1: Amounts due from non-related parties * Other receivables portfolio 2: Amounts due from related parties For other receivables classified into portfolios the Group calculates expected credit losses through the default risk exposure and the expected credit loss rate within the next 12 months 121CSGAnnual Report 2024 or throughout the duration. For other receivables grouped by aging the aging is calculated from the date of confirmation.Debt investment other debt investment For debt investments and other debt investments the Group calculates expected credit based on the nature of the investment and various types of counterparties and risk exposures through default risk exposure and expected credit loss rate within the next 12 months or throughout the duration.Assessment of significant increase in credit risk The Group compares the risk of default of a financial instrument on the balance sheet date with the risk of default on the initial recognition date to determine the relative change in the default risk of the financial instrument during its expected duration to assess whether the credit risk of the financial instrument has increased significantly since its initial recognition.When determining whether the credit risk has increased significantly since initial recognition the Group considers reasonable and supportable information including forward-looking informationthat can be obtained without unnecessary additional cost or effort. Information considered by the Group includes: * The debtor fails to pay the principal and interest on the due date of the contract; * an actual or expected significant deterioration in the external or internal credit rating (if any) of the financial instrument; * The actual or expected serious deterioration in the debtor's operating results; * Existing or expected changes in the technological market economic or legal environment will have a significant adverse impact on the debtor's ability to repay the Group's debt.Depending on the nature of the financial instrument the Group assesses whether there is a significant increase in credit risk on the basis of a single financial instrument or a combination of financial instruments. When evaluating based on a portfolio of financial instruments the Group can classify financial instruments based on common credit risk characteristics such as overdue information and credit risk ratings.If it is overdue for more than 30 days the Group determines that the credit risk of the financial instrument has increased significantly.The Group believes that financial assets default in the following circumstances: * It is unlikely that the borrower will pay in full what it owes the Group an assessment that does not take into account recourse actions by the Group such as the realization of collateral (if held); * Financial assets are overdue for more than 90 days.Credit-impaired financial assets The Group assesses whether credit impairment has occurred on financial assets measured at amortized cost and debt investments measured at fair value through other comprehensive 122CSGAnnual Report 2024 income on the balance sheet date. When one or more events occur that have an adverse impact on the expected future cash flows of a financial asset the financial asset becomes a credit- impaired financial asset. Evidence that a financial asset has been credit-impaired includes the following observable information: * The issuer or debtor encounters significant financial difficulties; * The debtor breaches the contract such as default or overdue payment of interest or principal; * The Group grants the debtor concessions that it would not have made under any other circumstances due to economic or contractual considerations related to the debtor's financial difficulties; * The likelihood that the debtor will go bankrupt or undergo other financial reorganization; * Financial difficulties of the issuer or debtor result in the disappearance of an active market for the financial asset.Presentation of expected credit loss provisions In order to reflect changes in the credit risk of financial instruments since initial recognition the Group re-measures expected credit losses on each balance sheet date and the resulting increase or reversal of loss provisions shall be accounted for as impairment losses or gains into current profit and loss. For financial assets measured at amortized cost the loss provision is reduced by the book value of the financial assets listed in the balance sheet; for debt investments measured at fair value through other comprehensive income the Group's other comprehensive income The loss provision is recognized in income and does not deduct the book value of the financial asset.Write off If the Group no longer reasonably expects that the contractual cash flows of a financial asset can be fully or partially recovered it will directly write down the Carrying Amount of the financial asset. Such a write-down constitutes the derecognition of the relevant financial asset.This situation usually occurs when the Group determines that the debtor does not have the assets or sources of income to generate sufficient cash flow to repay the amount that will be written down. However in accordance with the Group's procedures for recovering due amounts financial assets that are written down may still be affected by execution activities.If a financial asset that has been written down is later recovered the reversal of the impairment loss will be included in the profit and loss of the current period of recovery. （6）Financial asset transfer The transfer of financial assets refers to the transfer or delivery of financial assets to another party (the transfer-in party) other than the issuer of the financial assets.If the Group has transferred substantially all risks and rewards of ownership of a financial asset to the transferee the financial asset shall be derecognised; if the Group has retained substantially all risks and rewards of ownership of the financial asset the financial asset shall not be derecognised. 123CSGAnnual Report 2024 If the Group neither transfers nor retains substantially all the risks and rewards of ownership of a financial asset it shall handle the following situations respectively: if it gives up control of the financial asset the financial asset shall be derecognised and the assets and liabilities incurred shall be recognized; if it has not given up control of the financial asset If the financial asset is controlled the relevant financial assets shall be recognized to the extent of its continued involvement in the transferred financial assets and the relevant liabilities shall be recognized accordingly. （7）Offset of financial assets and financial liabilities When the Group has the legal right to offset the recognized financial assets and financial liabilities and is currently able to enforce such legal rights and the Group plans to settle on a net basis or to realize the financial assets and pay off the financial liabilities at the same time the financial assets and financial liabilities will be Financial liabilities are presented in the balance sheet at the amount after offsetting each other. Otherwise financial assets and financial liabilities are presented separately in the balance sheet and are not offset against each other. 11、Fair value measurement Fair value refers to the price that can be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date.The Group measures relevant assets or liabilities at fair value assuming that an orderly transaction to sell assets or transfer liabilities is conducted in the main market for the relevant assets or liabilities; if there is no main market the Group assumes that the transaction is in the most advantageous market for the relevant assets or liabilities. The market proceeds. The main market (or the most advantageous market) is the trading market that the Group can enter on the measurement date. The Group adopts the assumptions used by market participants to maximize their economic interests when pricing the asset or liability.For financial assets or financial liabilities that have an active market the Group determines their fair value using quoted prices in the active market. If there is no active market for a financial instrument the Group uses valuation techniques to determine its fair value.When measuring non-financial assets at fair value the ability of market participants to use the asset for its best purpose to generate economic benefits is considered or the ability to sell the asset to other market participants that can be used for its best purpose to generate economic benefits.The Group adopts valuation techniques that are applicable under the current circumstances and supported by sufficient available data and other information. It gives priority to the use of relevant observable input values and unobservable input values only uses when the observable input values cannot be obtained or are impractical to obtain..For assets and liabilities measured or disclosed at fair value in financial statements the fair value level to which they belong is determined based on the lowest level input value that is significant to the overall fair value measurement: the first level input value is the value that can be measured on the measurement date. The unadjusted quoted price of the same asset or liability obtained in the active market; the second level input value is the directly or indirectly observable input value of the relevant assets or liabilities in addition to the first level input value; the third level input value is Unobservable inputs to related assets or liabilities. 124CSGAnnual Report 2024 At each balance sheet date the Group reassesses the assets and liabilities recognized in the financial statements that continue to be measured at fair value to determine whether there is a transition between fair value measurement levels. 12、Inventories （1）Inventory classification The Group's inventories are divided into raw materials work in progress inventory goods and turnover materials. （2）Valuation method for issued inventory The Group's inventories are valued at actual cost when acquired. Raw materials inventory etc.are priced using the weighted average method when shipped. （3）Methods of Provision for inventories On the balance sheet date inventories are measured at the lower of cost and net realizable value. When the net realizable value is lower than the cost a provision for inventory depreciation is made.Net realizable value is the estimated selling price of the inventory minus the estimated costs to be incurred upon completion estimated selling expenses and related taxes. When determining the net realizable value of inventories it is based on the conclusive evidence obtained and the purpose of holding the inventories and the impact of events after the balance sheet date are also considered.The Group usually accrues inventory depreciation provisions based on individual inventory items. For inventories with large quantities and low unit prices inventory depreciation provisions are made according to the inventory category.On the balance sheet date if the factors that previously caused the inventory value to be written down have disappeared the inventory depreciation provision shall be reversed within the amount originally accrued. （4）Inventory system The Group adopts the perpetual inventory system. 13、Long-term investment Long-term equity investments include equity investments in subsidiaries joint ventures and associates. The associates of the Group are those that the Group can exert significant influence on the invested units. （1）Initial measurement of investment cost Long-term equity investments resulting from business combinations: For long-term equity investments obtained from business combinations under common control the share of the book value of the owner's equity of the merged party in the consolidated financial statements of the ultimate controlling party will be used as the investment cost on the date of merger ; not under the same control For long-term equity investments obtained through a business merger the investment cost of the long-term equity investment shall be based on the merger cost. 125CSGAnnual Report 2024 For long-term equity investments obtained by other means: for long-term equity investments obtained by paying cash the actual purchase price paid will be used as the initial investment cost; for long-term equity investments obtained by issuing equity securities the fair value of the equity securities issued will be used as the initial investment cost. （2）Subsequent measurement and profit and loss recognition methods Investments in subsidiaries are accounted for using the cost method unless the investment qualifies as 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 in addition to the actual price paid when acquiring the investment or the cash dividends or profits that have been declared but not yet distributed included in the consideration the cash dividends or profits declared to be distributed by the investee shall be recognized as investment income for current profit and loss.For long-term equity investments accounted for using the equity method if the initial investment cost is greater than the fair value share of the investee’s identifiable net assets that should be enjoyed at the time of investment the investment cost of the long-term equity investment will not be adjusted; if the initial investment cost is less than the investment the investee’s share of the identifiable net assets should be enjoyed If the fair value share of net assets is identified the book value of the long-term equity investment will be adjusted and the difference will be included in the current profit and loss of the investment.When accounting using the equity method investment income and other comprehensive income are recognized respectively according to the share of the net profit or loss and other comprehensive income realized by the investee that should be enjoyed or shared and the book value of the long-term equity investment is adjusted at the same time; in accordance with the declaration of the investee The portion of the distributed profits or cash dividends that should be calculated will reduce the book value of the long-term equity investment accordingly; for other changes in the owner's equity of the investee other than net profit and loss other comprehensive income and profit distribution the book value of the long-term equity investment will be adjusted and Included in capital reserves (other capital reserves).When confirming the share of the investee's net profits and losses the fair value of the investee's identifiable assets when the investment is obtained is used as the basis and in accordance with the Group's accounting policies and accounting periods the net profit of the investee is determined. Make adjustments and confirm.If it is possible to exert significant influence on the investee or implement joint control but does not constitute control due to additional investment or other reasons on the conversion date the sum of the fair value of the original equity plus the cost of the new investment will be used as the initial investment cost to be accounted for by the equity method. If the original equity is classified as a non-trading equity instrument investment measured at fair value and its changes are included in other comprehensive income the related cumulative fair value changes originally included in other comprehensive income will be transferred to retained earnings when it is accounted for under the equity method.If the joint control or significant influence on the invested unit is lost due to the disposal of part of the equity investment or other reasons the remaining equity after the disposal shall be changed to the "Accounting Standards for Business Enterprises No. 22 - Financial Instrument Recognition and Significant Influence" on the date of loss of joint control or significant 126CSGAnnual Report 2024 influence. Measurement" is used for accounting treatment and the difference between the fair value and the book value is included in the current profit and loss. Other comprehensive income recognized due to the use of the equity method for accounting in the original equity investment will be accounted for on the same basis as the investee's direct disposal of relevant assets or liabilities when the equity method is terminated; other changes in owner's equity related to the original equity investment Transferred to current profit and loss.If the control over the invested unit is lost due to the disposal of part of the equity investment or other reasons and the remaining equity after the disposal can jointly control or exert significant influence on the invested unit it shall be accounted for according to the equity method and the remaining equity shall be regarded as owned. Adjustments will be made using the equity method upon acquisition; if the remaining equity after disposal cannot jointly control or exert significant influence on the invested unit the relevant provisions of "Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments" will be followed. Accounting treatment the difference between its fair value and book value on the date of loss of control is included in the current profit and loss.If the Group's shareholding ratio decreases due to capital increase by other investors thereby losing control but it can exercise joint control or exert significant influence on the invested unit the Group's share of the invested unit due to the capital increase shall be confirmed based on the new shareholding ratio. The difference between the share of net assets increased due to share expansion and the original book value of the long-term equity investment corresponding to the decrease in shareholding ratio that should be carried forward is included in the current profit and loss; then the new shareholding ratio is deemed to have been calculated since the investment was obtained. That is adjustments are made using the equity method of accounting.Unrealized gains and losses from internal transactions between the Group and its associates and joint ventures are calculated based on the shareholding ratio and are attributable to the Group and investment gains and losses are recognized on an offsetting basis. However if the unrealized internal transaction losses between the Group and the investee are impairment losses on the transferred assets they will not be offset. （3）Basis for determining joint control and significant influence on the invested unit Joint control refers to the shared control over an arrangement in accordance with relevant agreements and the relevant activities of the arrangement must be decided only with the unanimous consent of the participants sharing control rights. When judging whether there is joint control first judge whether the arrangement is collectively controlled by all participants or a combination of participants and secondly whether decisions on activities related to the arrangement must be unanimously agreed upon by the participants who collectively control the arrangement. If all participants or a group of participants must act in concert to determine the relevant activities of an arrangement all participants or a group of participants are considered to collectively control the arrangement; if there are two or more combinations of participants that can collectively Control of an arrangement does not constitute joint control.When determining whether joint control exists the protective rights enjoyed are not taken into account.Significant influence means that the investor has the power to participate in decision-making on the financial and operating policies of the investee but it is not able to control or jointly control the formulation of these policies with other parties. When determining whether it can exert a significant influence on the investee it is considered that the investor's direct or 127CSGAnnual Report 2024 indirect holdings of voting shares in the investee and the current executable potential voting rights held by the investor and other parties are assumed to be converted into control over the investee. The impact arising from the acquisition of equity includes the impact of current convertible warrants share options and convertible corporate bonds issued by the investee.When the Group directly or indirectly through subsidiaries owns more than 20% (inclusive) but less than 50% of the voting shares of the invested unit it is generally considered to have a significant influence on the invested unit unless there is clear evidence that this situation It is unable to participate in the production and operation decisions of the invested unit and does not have a significant impact; when the Group owns less than 20% (exclusive) of the voting shares of the invested unit it is generally not considered to have a significant impact on the invested unit unless there is clear evidence that this Under such circumstances we can participate in the production and operation decisions of the invested unit and have a significant influence. （4）Impairment testing method and impairment provision accrual method For investments in subsidiaries associates and joint ventures please refer to notes for the method of calculating asset impairment. 14、Investment properties Investment property is property held to earn rentals or for capital appreciation or both. The Group's investment properties includes leased land use rights land use rights held and prepared to be transferred after appreciation and leased buildings.There is an active real estate trading market in the location where the Group's investment real estate is located and the Group is able to obtain market prices and other relevant information of similar or similar real estate from the real estate trading market so that it can make a reasonable estimate of the fair value of the investment real estate. Therefore the Group adopts the fair value model for subsequent measurement of investment real estate and changes in fair value through profit and loss.When determining the fair value of investment properties refer to the current market price of the same or similar real estate in the active market; if the current market price of the same or similar real estate cannot be obtained refer to the latest transaction price of the same or similar real estate in the active market and Consider the transaction situation transaction date location and other factors to make a reasonable estimate of the fair value of the investment property; or determine its fair value based on the expected future rental income and the present value of the relevant cash flows.In rare cases if there is evidence that the Group acquires an investment property that is not under construction for the first time (or an existing property becomes an investment property for the first time after completing construction or development activities or changing its use) the Group will If the fair value of investment real estate cannot be obtained continuously and reliably the investment real estate will be measured using the cost model until disposal and it is assumed that there is no residual value.The difference between the disposal income from the sale transfer scrapping or damage of investment properties after deducting its book value and relevant taxes is included in the current profit and loss. 15、Fixed assets 128CSGAnnual Report 2024 （1）Fixed asset recognition conditions The Group's fixed assets refer to tangible assets held for the production of goods provision of labor services leasing or operation and management and with a useful life of more than one accounting year.A fixed asset can only be recognized when the economic benefits related to the fixed asset are likely to flow into the enterprise and the cost of the fixed asset can be measured reliably.The Group's fixed assets are initially measured based on the actual cost when acquired.Subsequent expenditures related to fixed assets shall be included in the cost of fixed assets when the economic benefits related to them are likely to flow into the Group and their costs can be reliably measured; daily repair costs of fixed assets that do not meet the conditions for subsequent expenditures for capitalization of fixed assets shall be included in the cost of fixed assets when the economic benefits related to them are likely to flow into the Group and their costs can be measured reliably. When incurred it shall be included in the current profit and loss or included in the cost of related assets according to the beneficiary object. For the replaced part its book value is derecognized. （2）Depreciation methods for various types of fixed assets Fixed assets are depreciated using the straight-line method based on their costs less estimated residual values over their estimated useful lives Depreciation begins when a fixed asset reaches its intended usable condition and depreciation stops when it is derecognized or classified as a non-current asset held for sale. Without considering impairment provisions the Group determines the annual depreciation rates of various types of fixed assets based on fixed asset category estimated service life and estimated residual value as follows: Category Useful lives (years) Residual rate% Annual depreciationrate % Buildings 20-35 5 4.75-2.71 Mechinery equipment 8-20 5 11.88-4.75 Transportation and Others 5-8 0 20-12.50 Among them for fixed assets for which impairment provisions have been made the depreciation rate should also be calculated and determined by deducting the accumulated amount of fixed asset impairment provisions. （3）Please refer to notes to the financial statements for the impairment testing method and impairment provision accrual method for fixed assets. （4）At the end of each year the Group reviews the useful life estimated net residual value and depreciation method of fixed assets.If there is a difference between the estimated useful life and the original estimate the useful life of the fixed assets will be adjusted; if there is a difference between the expected net residual value and the original estimate the estimated net residual value will be adjusted. （5）Fixed asset disposal 129CSGAnnual Report 2024 When a fixed asset is disposed of or no economic benefits are expected to be generated through use or disposal the fixed asset is derecognised. The amount of disposal income from the sale transfer scrapping or damage of fixed assets after deducting their book value and relevant taxes is included in the current profit and loss. 16、Construction in progress The cost of the Group's construction-in-progress is determined based on actual project expenditures including various necessary project expenditures incurred during the construction period borrowing costs that should be capitalized before the project reaches its intended usable state and other related expenses.Construction in progress is transferred to fixed assets when it reaches the intended usable state.The criteria for judging the intended usable status should meet one of the following conditions: The physical construction (including installation) of the fixed assets has been completed or substantially completed trial production or trial operation has been carried out and the results show that the assets can operate normally. Or it can produce stably or the trial operation results show that it can operate normally. The amount of expenditure on the fixed assets constructed is very small or almost no longer occurs and the fixed assets purchased have met the design or contract requirements or are basically consistent with the design or contract requirements.Please refer to notes to the financial statements for the method of accruing asset impairment for construction in progress. 17、Engineer Materials The Group's engineering materials refer to various materials prepared for projects under construction including engineering materials equipment that has not yet been installed and tools and equipment prepared for production.The purchased engineering materials are measured at cost the engineering materials received are transferred to the project under construction and the remaining engineering materials after the completion of the project are transferred to inventory.Please refer to notes to the financial statements for the asset impairment method of construction materials.In the balance sheet the closing balance of construction materials is listed in the "Construction in Progress" item. 18、Borrowing costs （1）Recognition principles for capitalization of borrowing costs If the borrowing costs incurred by the Group are directly attributable to the acquisition construction or production of assets that meet the capitalization conditions they shall be capitalized and included in the cost of the relevant assets; other borrowing costs shall be recognized as expenses based on the amount incurred when incurred and shall be included in the cost of the relevant assets for current profit and loss. Borrowing costs will begin to be capitalized if they meet the following conditions at the same time: 130CSGAnnual Report 2024 * Asset expenditures have occurred. Asset expenditures include expenditures in the form of cash payments transfers of non-cash assets or interest-bearing debts for the acquisition construction or production of assets that meet capitalization conditions; * The borrowing costs have been incurred; * The necessary purchase construction or production activities to bring the asset to its intended usable or salable state have begun. （2）Borrowing costs capitalization period When the assets purchased constructed or produced by the Group that meet the capitalization conditions are ready for intended use or sale the capitalization of borrowing costs will cease.Borrowing costs incurred after the assets that meet the capitalization conditions reach the intended usable or salable state are recognized as expenses based on the amount incurred when incurred and included in the current profit and loss.If an asset that meets the capitalization conditions is abnormally interrupted during the acquisition construction or production process and the interruption lasts for more than 3 months the capitalization of borrowing costs will be suspended; the borrowing costs during the normal interruption period will continue to be capitalized. （3）Calculation method of capitalization rate of borrowing costs and capitalization amount The interest expenses actually incurred on special borrowings in the current period minus the interest income from unused borrowed funds deposited in banks or investment income from temporary investments are capitalized; general borrowings are capitalized based on the excess of the accumulated asset expenditures over the special borrowings. The capitalization amount is determined by multiplying the weighted average of asset expenditures by the capitalization rate of the general borrowings occupied. The capitalization rate is calculated and determined based on the weighted average interest rate of general borrowings.During the capitalization period all exchange differences on special foreign currency borrowings are capitalized; exchange differences on general foreign currency borrowings are included in the current profits and losses. 19、Intangible assets The Group's intangible assets include land use rights patent rights and proprietary technologies mineral mining rights and others.Intangible assets are initially measured based on cost and their service life is analyzed and judged when the intangible assets are acquired. If the service life is limited from the time when the intangible asset becomes available for use an amortization method that can reflect the expected realization method of the economic benefits related to the asset shall be used and amortization will be amortized within the estimated useful life; if the expected realization method cannot be reliably determined Amortization is carried out using the straight-line method; intangible assets with indefinite service life are not amortized.The amortization method of intangible assets with limited useful life is as follows: 131CSGAnnual Report 2024 Category Useful lives Basis for determining service(years) life Amortization method Notes Land use rights 30-70 years Warrant Straight-lineDepreciation Patent rights and proprietary 5-20 years Estimated useful life Straight-line technologies Depreciation Exploitation 16-20 years Warrants expected income Straight-linerights period Depreciation Others 2-10 years Estimated useful life Straight-lineDepreciation At the end of each year the Group reviews the useful life and amortization method of intangible assets with limited service life. If it is different from the previous estimate the original estimate is adjusted and treated as a change in accounting estimate.If it is expected that an intangible asset will no longer bring future economic benefits to the enterprise on the balance sheet date the entire book value of the intangible asset will be transferred to the current profit and loss.Please refer to notes to the financial statements for the method of impairment for intangible assets.. 20、R&D expenditure The Group's R&D expenditures are expenditures directly related to the company's R&D activities including R&D staff salaries direct investment costs depreciation expenses and long-term deferred expenses design expenses equipment commissioning expenses intangible asset amortization expenses entrusted external research and development expenses Other expenses etc. The wages of R&D personnel are included in R&D expenditures based on project working hours. Equipment production lines and sites shared between R&D activities and other production and operation activities are included in R&D expenses according to the proportion of working hours and the proportion of area.The Group divides expenditures on internal research and development projects into expenditures in the research phase and expenditures in the development phase.Expenditures in the research stage are included in the current profits and losses when incurred.Expenditures in the development stage can only be capitalized if they meet the following conditions: it is technically feasible to complete the intangible asset so that it can be used or sold; there is the intention to complete the intangible asset and use or sell it; the intangible asset The way to generate economic benefits includes being able to prove that there is a market for the products produced using the intangible assets or that the intangible assets themselves have a market. If the intangible assets will be used internally they can prove their usefulness; there are sufficient technical financial and other resource supports. in order to complete the development of the intangible asset and have the ability to use or sell the intangible asset; the expenditures attributable to the development stage of the intangible asset can be measured reliably. Development expenditures that do not meet the above conditions are included in the current profit and loss.The Group's research and development projects will enter the development stage after meeting the above conditions and passing technical feasibility and economic feasibility studies to form a project. 132CSGAnnual Report 2024 Capitalized expenditures in the development phase are listed as development expenditures on the balance sheet and are converted into intangible assets from the date the project reaches its intended use.Capitalization conditions for specific R&D projects: Expenditures in the research stage are included in the current profits and losses when incurred.Before large-scale production expenditures related to the design and testing phase of the final application of the production process are expenditures in the development phase. If the following conditions are met at the same time they will be capitalized: * The development of the production process has been fully demonstrated by the technical team; * Management has approved the budget for production process development; * Preliminary market research and analysis shows that the products produced by the production process have market promotion capabilities; * There is sufficient technical and financial support to carry out production process development activities and subsequent large-scale production; and the expenditure on production process development can be reliably collected. If it is impossible to distinguish between research and development expenditures all R&D expenditures incurred will be included in the current period's profit and loss. 21、Assets impairment For subsidiaries’ long-term equity investments fixed assets construction in process right-of- use assets intangible assets goodwill etc. (excluding inventories investment properties measured according to the fair value model deferred tax assets and financial assets) value determined as follows: On the balance sheet date it is judged whether there are any signs of possible impairment of the assets. If there are signs of impairment the Group will estimate its recoverable amount and conduct an impairment test. Goodwill formed due to business combinations intangible assets with indefinite useful lives and intangible assets that have not yet reached a usable state are subject to impairment testing every year regardless of whether there are signs of impairment.The recoverable amount is determined based on the higher of the asset's fair value less disposal costs and the present value of the asset's expected future cash flows. The Group estimates the recoverable amount on the basis of a single asset; if it is difficult to estimate the recoverable amount of an individual asset the Group determines the recoverable amount of the asset group based on the asset group to which the asset belongs. The identification of an asset group is based on whether the main cash inflow generated by the asset group is independent of the cash inflows of other assets or asset groups.When the recoverable amount of an asset or asset group is lower than its book value the Group will write down its book value to the recoverable amount and the amount of the write- down will be included in the current profit and loss and the corresponding asset impairment provision will be made. 133CSGAnnual Report 2024 As far as the impairment test of goodwill is concerned the book value of goodwill formed due to a business combination shall be apportioned to the relevant asset group in a reasonable manner from the date of purchase; if it is difficult to apportion it to the relevant asset group it shall be apportioned to the relevant asset group. Related asset group combinations. The relevant asset group or asset group combination is an asset group or asset group combination that can benefit from the synergy effects of the business combination and is no larger than the reporting segment determined by the group.During impairment testing if there are signs of impairment in an asset group or combination of asset groups related to goodwill first conduct an impairment test on the asset group or combination of asset groups that does not include goodwill calculate the recoverable amount and confirm the corresponding impairment. Then conduct an impairment test on the asset group or asset group combination containing goodwill and compare its book value with the recoverable amount. If the recoverable amount is lower than the book value the impairment loss of goodwill is recognized.Once the asset impairment loss is recognized it will not be reversed in subsequent accounting periods. 22、Long-term prepaid expenses The long-term deferred expenses incurred by the Group are measured at actual cost and amortized evenly over the expected beneficial period. For long-term deferred expense items that cannot benefit future accounting periods their amortized value shall be fully included in the current profit and loss. 23、Employee Compensation （1）Range of employee compensation Employee compensation refers to various forms of remuneration or compensation given by enterprises to obtain services provided by employees or to terminate labor relations.Employee compensation includes short-term compensation post-employment benefits termination benefits and other long-term employee benefits. Benefits provided by an enterprise to employees’ spouses children dependents survivors of deceased employees and other beneficiaries are also employee benefits. （2）Short-term compensation During the accounting period when employees provide services the Group recognizes the actual employee wages bonuses social insurance premiums such as medical insurance premiums work-related injury insurance premiums maternity insurance premiums and housing provident funds paid for employees based on prescribed standards and proportions as a liabilities and included in the current profit and loss or related asset costs. （3）Post-employment benefits Post-employment benefit plans include defined contribution plans and defined benefit plans.Among them a defined contribution plan refers to a post-employment benefit plan in which the enterprise no longer bears further payment obligations after depositing a fixed fee into an independent fund; a defined benefit plan refers to a post-employment benefit plan other than a defined contribution plan. 134CSGAnnual Report 2024 Defined contribution plans Defined contribution plans include basic pension insurance unemployment insurance etc.During the accounting period when employees provide services the deposit amount payable calculated according to the defined contribution plan is recognized as a liability and included in the current profit and loss or related asset costs. （4）Termination benefits If the Group provides dismissal benefits to employees the employee compensation liabilities arising from the dismissal benefits will be recognized at the earliest of the following two times and included in the current profit and loss: When the Group cannot unilaterally withdraw the dismissal benefits provided due to the termination of labor relations plan or layoff proposal; When the Group recognizes costs or expenses related to restructuring involving payment of termination benefits. （5）Other long-term benefits Other long-term employee benefits provided by the Group to employees that meet the conditions of a defined contribution plan will be handled in accordance with the above- mentioned relevant regulations on defined contribution plans. If it is in compliance with the defined benefit plan it shall be handled in accordance with the relevant provisions on the defined benefit plan mentioned above but the "changes caused by the remeasurement of the net liabilities or net assets of the defined benefit plan" in the relevant employee compensation costs shall be included in the current profit and loss or related Asset cost. 24、Provisions If the obligations related to contingencies meet the following conditions at the same time the Group will recognize them as estimated liabilities: (1) The obligation is a current obligation borne by the Group; (2) The performance of this obligation is likely to result in the outflow of economic benefits from the Group; (3) The amount of the obligation can be measured reliably. Estimated liabilities are initially measured based on the best estimate of the expenditure required to fulfill the relevant current obligations and factors such as risks uncertainties and time value of money related to contingencies are comprehensively considered. If the time value of money has a significant impact the best estimate is determined by discounting the relevant future cash outflows. The Group reviews the book value of estimated liabilities on the balance sheet date and adjusts the book value to reflect the current best estimate.If all or part of the expenses required to settle the recognized estimated liabilities are expected to be compensated by a third party or other parties the compensation amount can only be recognized separately as an asset when it is basically certain that it will be received. The amount of compensation recognized shall not exceed the book value of the liability recognized. 25、Revenue 135CSGAnnual Report 2024 （1）General Principles The Group recognizes revenue when it fulfills its performance obligations in the contract that is when the customer obtains control of the relevant goods or services.If the contract contains two or more performance obligations the Group will allocate the transaction price to each individual performance obligation based on the relative proportion of the stand-alone selling price of the goods or services promised by each individual performance obligation on the contract commencement date. Revenue is measured at the transaction price of each individual performance obligation.When one of the following conditions is met the performance obligation is performed within a certain period of time; otherwise the performance obligation is performed at a certain point in time: * When the Group performs the contract the customer obtains and consumes the economic benefits brought by the Group's performance.* Customers can control the goods under construction during the performance of the contract by the Group.* The goods produced by the Group during the performance of the contract have irreplaceable uses and the Group has the right to collect payment for the cumulative performance part completed so far during the entire contract period.For performance obligations fulfilled within a certain period of time the Group recognizes revenue based on the performance progress within that period of time. When the progress of contract performance cannot be reasonably determined if the costs incurred by the Group are expected to be compensated revenue will be recognized based on the amount of costs incurred until the progress of contract performance can be reasonably determined.For performance obligations fulfilled at a certain point in time the Group recognizes revenue at the point when the customer obtains control of the relevant goods or services. When determining whether a customer has obtained control of goods or services the Group will consider the following signs: * The Group has the current right to receive payment for the goods or services that is the customer has current payment obligations for the goods.* The Group has transferred the legal ownership of the goods to the customer which means that the customer already owns the legal ownership of the goods.* The Group has physically transferred the goods to the customer that is the customer has physically taken possession of the goods.* The Group has transferred the main risks and rewards of ownership of the commodity to the customer that is the customer has obtained the main risks and rewards of ownership of the commodity.* The customer has accepted the goods or services.* Other signs indicating that the customer has obtained control of the product. 136CSGAnnual Report 2024 （2）Specific methods The Group's revenue mainly comes from the following business types: sales of products external provision of consulting and processing services.Products sold The Group produces and sells float glass photovoltaic glass engineering glass solar industry related products electronic glass and display device etc.For domestic sales the Group transports the products to the agreed delivery location in accordance with the agreement or picks it up by the buyer. Revenue is recognized after the buyer confirms receipt or pick-up.For export sales according to the trade terms stipulated in the sales contract the Group recognizes revenue after the export products go through export customs declaration procedures and are shipped in accordance with the contract or after they are shipped to the designated delivery location.For solar energy and other industries' photovoltaic power generation revenue the Group recognizes the electricity when it is supplied to the provincial power grid company where each electric field is located uses the settled electricity volume confirmed by both parties as the electricity sales for that month and uses the on-grid electricity price approved by the National Development and Reform Commission or the electricity price agreed in the contract as the sales unit price.The credit periods granted by the Group to customers in various industries are consistent with the practices of various industries and there is no significant financing component.The Group provides product quality assurance for the products sold and recognizes corresponding estimated liabilities. The Group does not provide any additional services or additional quality assurance so the product quality assurance does not constitute a separate performance obligation.Glass products with sales return clauses revenue recognition is limited to the amount of accumulated recognized revenue that is unlikely to result in a significant reversal. The Group recognizes liabilities based on the expected return amount and at the same time recognizes the balance as an asset based on the book value of the goods expected to be returned when the goods are transferred minus the expected costs of recovering the goods (including the impairment of the value of the returned goods).Provide consulting and processing services The Group provides external consulting and processing services because customers obtain and consume the economic benefits brought by the company's performance of the contract while the company performs the contract. The Group recognizes revenue based on the progress of contract performance. The progress of contract performance is determined based on the proportion of costs incurred to the estimated total costs. On the balance sheet date the Group re-estimates the performance progress of completed services to reflect changes in performance.When the Group recognizes revenue based on the progress of completed services the portion for which the Group has obtained the unconditional right to receive payment is recognized as 137CSGAnnual Report 2024 accounts receivable and the remaining portion is recognized as contract assets. Accounts receivable and contract assets are recognized as expected credit losses. Loss provisions are recognized as the basis; if the contract price received or receivable by the Group exceeds the labor services completed the excess will be recognized as contract liabilities. The Group's contract assets and contract liabilities under the same contract are presented on a net basis. 26、Contract costs Contract costs include incremental costs incurred to obtain the contract and contract performance costs.The incremental costs incurred to obtain the contract refer to costs that the company would not have incurred if it had not obtained the contract (such as sales commissions etc.). If the cost is expected to be recovered the company will recognize it as the contract acquisition cost and as an asset. Other expenses incurred by the Company to obtain the contract except for the incremental costs expected to be recovered are included in the current profits and losses when incurred.If the cost incurred to fulfill the contract does not fall within the scope of other accounting standards for enterprises such as inventory and meets the following conditions the company will recognize it as an asset as the contract performance cost: * The cost is directly related to a current or expected contract including direct labor direct materials manufacturing overhead (or similar expenses) costs clearly borne by the customer and other costs incurred solely because of the contract; * This cost increases the company’s resources for fulfilling its performance obligations in the future; * The cost is expected to be recovered.Assets recognized for contract acquisition costs and assets recognized for contract performance costs (hereinafter referred to as "assets related to contract costs" ) are amortized on the same basis as the recognition of revenue from goods or services related to the assets and included in the current profit and loss.When the book value of assets related to contract costs is higher than the difference between the following two items the company makes impairment provisions for the excess and recognizes it as asset impairment losses: * The remaining consideration that the company expects to obtain from the transfer of goods or services related to the asset; * The estimated cost that will be incurred to transfer the relevant goods or services. 27、Government subsidies Government subsidies are recognized when the conditions attached to the government subsidies are met and can be received.Government subsidies for monetary assets are measured based on the amount received or receivable. Government subsidies for non-monetary assets are measured at fair value; if the fair value cannot be obtained reliably they are measured at a nominal amount of 1 yuan. 138CSGAnnual Report 2024 Government subsidies related to assets refer to government subsidies obtained by the Group for the purchase construction or other formation of long-term assets; in addition government subsidies related to income are regarded as government subsidies.For government documents that do not clearly stipulate the subsidy objects and can form long-term assets the part of the government subsidy corresponding to the asset value shall be regarded as the government subsidy related to the asset and the remaining part shall be regarded as the government subsidy related to income; if it is difficult to distinguish the government subsidy shall be regarded as the government subsidy related to the asset. The whole is regarded as a government subsidy related to income.Government subsidies related to assets are recognized as deferred income and are included in profits and losses in installments according to a reasonable and systematic method during the use period of the relevant assets. If government subsidies related to income are used to compensate for relevant costs or losses that have already occurred they will be included in the current profits and losses; if they are used to compensate for relevant costs or losses in subsequent periods they will be included in deferred income and will be included in the relevant costs or losses. The loss is included in the current profit and loss during the period during which the loss is recognized. Government subsidies measured according to the nominal amount are directly included in the current profit and loss. The Group adopts a consistent approach to the same or similar government subsidy business.Government subsidies related to daily activities shall be included in other income according to the economic business essence. Government subsidies unrelated to daily activities are included in non-operating income.When a confirmed government subsidy needs to be returned if the book value of the relevant assets is reduced at the time of initial recognition the book value of the assets is adjusted; if there is a balance of relevant deferred income the Carrying Amount of the relevant deferred income isreduced and the excess is included in the current profit and loss; it is In other cases it will be directly included in the current profit and loss. 28、Deferred tax assets and deferred tax liabilities Income tax includes current income tax and deferred income tax. Except for adjustments to goodwill arising from business combinations or deferred income taxes related to transactions or events directly included in owners' equity which are included in owners' equity they are all included in current profits and losses as income tax expenses.The Group adopts the balance sheet liability method to recognize deferred income tax based on the temporary differences between the book values of assets and liabilities on the balance sheet date and their tax basis.Each taxable temporary difference is recognized as a related deferred income tax liability unless the taxable temporary difference is generated in the following transactions: (1) Initial recognition of goodwill or the initial recognition of assets or liabilities arising from a transaction with the following characteristics: the transaction is not a business combination and the transaction affects neither accounting profits nor taxable income when the transaction occurs ( initial recognition (Except for individual transactions that result in equal amounts of taxable temporary differences and deductible temporary differences arising from the assets and liabilities) ; 139CSGAnnual Report 2024 (2) For taxable temporary differences related to investments in subsidiaries joint ventures and associates the time of reversal of the temporary differences can be controlled and the temporary differences are likely not to be reversed in the foreseeable future.For deductible temporary differences deductible losses and tax credits that can be carried forward to future years the Group shall use it to offset the deductible temporary differences deductible losses and tax credits to the extent that it is probable that it will be available. The deferred income tax assets generated will be recognized to the limit of the future taxable income unless the deductible temporary difference is generated in the following transactions: (1) The transaction is not a business combination and when the transaction occurs it affects neither accounting profits nor taxable income (a single transaction in which the initial recognition of assets and liabilities results in an equal amount of taxable temporary differences and deductible temporary differences are excepted); (2) For deductible temporary differences related to investments in subsidiaries joint ventures and associates and if the following conditions are met at the same time the corresponding deferred income tax assets are recognized: the temporary differences are likely to be reversed in the foreseeable future And it is likely to obtain taxable income in the future that can be used to offset deductible temporary differences.On the balance sheet date the Group's deferred income tax assets and deferred income tax liabilities are measured at the applicable tax rate during the period when the asset is expected to be recovered or the liability is settled and the income tax impact of the expected method of recovering the asset or settling the liability on the balance sheet date is reflected.On the balance sheet date the Group reviews the book value of deferred income tax assets. If it is probable that sufficient taxable income will not be available in future periods to offset the benefits of deferred tax assets the carrying amount of the deferred tax assets will be reduced.The amount of the write-down is reversed when it is probable that sufficient taxable income will be obtained.On the balance sheet date deferred income tax assets and deferred income tax liabilities are presented as the net amount after offsetting when the following conditions are met at the same time: (1) The tax payer within the group has the legal right to settle current income tax assets and current income tax liabilities on a net basis; (2) Deferred income tax assets and deferred income tax liabilities are related to income taxes levied by the same tax collection and administration department on the same taxpayer within the group. 29、leases （1）Identification of leases On the contract inception date the Group as a lessee or lessor evaluates whether the customer in the contract has the right to obtain substantially all the economic benefits generated from the use of the identified assets during the use period and has the right to direct the use of the identified assets during the use period. If a party in a contract transfers the right to control the use of one or more identified assets within a certain period in exchange for consideration the Group determines that the contract is a lease or contains a lease. 140CSGAnnual Report 2024 （2）The Group acts as lessee On the commencement date of the lease period the Group recognizes right-of-use assets and lease liabilities for all leases except for simplified treatment short-term leases and low-value asset leases.The accounting policies for right-of-use assets are shown in notes.Lease liabilities are initially measured based on the present value of the unpaid lease payments at the beginning of the lease term using the interest rate implicit in the lease. If the interest rate implicit in the lease cannot be determined the incremental borrowing rate is used as the discount rate. Lease payments include: fixed payments and substantive fixed payments if there are lease incentives the amount related to lease incentives is deducted; variable lease payments that depend on the index or ratio; the exercise price of the purchase option provided that the lessee is reasonable It is certain that the option will be exercised; the amount required to be paid to exercise the option to terminate the lease provided that the lease term reflects that the lessee will exercise the option to terminate the lease; and the amount expected to be paid based on the residual value of the guarantee provided by the lessee. Subsequently the interest expense of the lease liability for each period during the lease term is calculated based on the fixed periodic interest rate and included in the current profit and loss. Variable lease payments that are not included in the measurement of lease liabilities are included in the current profit and loss when actually incurred.Short-term lease A short-term lease refers to a lease with a lease term of no more than 12 months on the start date of the lease period except for leases that include a purchase option.The Group will include the lease payments of short-term leases into the relevant asset costs or current profits and losses on a straight-line basis during each period of the lease term.Low value asset leasing Low-value asset leases refer to leases where the value of a single leased asset is less than 100000 yuan when it is a brand-new asset. The Group will include the lease payments for low-value asset leases into the relevant asset costs or current profits and losses on a straight-line basis during each period of the lease term.For low-value asset leases the Group chooses to adopt the above simplified treatment method based on the specific circumstances of each lease.Lease changes If a lease changes and the following conditions are met at the same time the Group will account for the lease change as a separate lease: * The lease change expands the scope of the lease by adding the right to use one or more leased assets; * Increased The consideration is equivalent to the individual price of the extended portion of the lease adjusted for the circumstances of the contract.If the lease change is not accounted for as a separate lease on the effective date of the lease change the Group re-allocates the consideration of the contract after the change re- 141CSGAnnual Report 2024 determines the lease term and calculates it based on the changed lease payment and the revised discount rate. Present value remeasurement of the lease liability.If a change in the lease results in a reduction in the scope of the lease or a shortening of the lease period the Group will accordingly reduce the book value of the right-of-use assets and include the gains or losses related to the partial or complete termination of the lease into the current profits and losses.If other lease changes result in the remeasurement of lease liabilities the Group will adjust the book value of the right-of-use assets accordingly. （3）The Group acts as lessor When the Group acts as a lessor leases that substantially transfer all risks and rewards related to asset ownership are recognized as finance leases and leases other than finance leases are recognized as operating leases.Financial lease In financial leases the Group's net lease investment on the date of the lease term is recorded as the accounting value of finance lease receivables. The net lease investment is the unguaranteed residual value and the lease receivables that have not been received on the date of the lease term are calculated based on the amount included in the lease. The sum of present values discounted with interest rates. As the lessor the Group calculates and recognizes interest income for each period during the lease term based on fixed periodic interest rates.Variable lease payments obtained by the Group as a lessor that are not included in the measurement of the net lease investment are included in the current profit and loss when actually incurred.The derecognition and impairment of finance lease receivables shall be accounted for in accordance with the provisions of "Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments" and "Accounting Standards for Business Enterprises No. 23 - Transfer of Financial Assets".Operating lease For rents in operating leases the Group recognizes current profits and losses according to the straight-line method in each period during the lease term. The initial direct expenses incurred in connection with the operating lease shall be capitalized amortized during the lease period on the same basis as the rental income recognition and included in the current profit and loss in installments. Variable lease payments related to operating leases that are not included in the lease receipts are included in the current profit and loss when they actually occur.Lease changes If an operating lease changes the Group will account for it as a new lease from the effective date of the change and the amount of lease receipts received in advance or receivable related to the lease before the change is regarded as the amount of receipts from the new lease.If a financial lease changes and the following conditions are met at the same time the Group will account for the change as a separate lease: * The change expands the scope of the lease by adding the right to use one or more leased assets; * The increased consideration The 142CSGAnnual Report 2024 amount is equivalent to the individual price of the extended portion of the lease adjusted for the circumstances of the contract.If a financial lease is changed and is not accounted for as a separate lease the Group will treat the changed lease under the following circumstances: * If the change takes effect on the lease commencement date the lease will be classified as an operating lease and the Group will From the effective date of the lease change it will be accounted for as a new lease and the net lease investment before the effective date of the lease change will be used as the book value of the leased asset; * If the change takes effect on the lease commencement date the lease will be classified as financing For leases the Group shall conduct accounting treatment in accordance with the provisions of "Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments" regarding modification or renegotiation of contracts. 30、Right-of-use assets （1）Right-of-use asset recognition conditions Right-of-use assets refer to the Group's rights as a lessee to use the leased assets during the lease term.On the commencement date of the lease term the right-of-use asset is initially measured at cost. This cost includes: the initial measurement amount of the lease liability; the lease payment amount paid on or before the start date of the lease term if there is a lease incentive deduct the amount related to the lease incentive that has been enjoyed; the initial direct costs incurred by the Group as a lessee; The Group as the lessee expects to incur costs for dismantling and removing the leased assets restoring the site where the leased assets are located or restoring the leased assets to the state agreed upon in the lease terms. As a lessee the Group recognizes and measures costs such as demolition and restoration in accordance with Accounting Standards for Business Enterprises No. 13 - Contingencies. Adjustments are made subsequently for any subsequent remeasurement of the lease liability. （2）Depreciation method for right-of-use assets The Group uses the straight-line method to calculate depreciation. If the Group as the lessee can reasonably determine that it will obtain ownership of the leased asset when the lease term expires depreciation will be accrued over the remaining useful life of the leased asset. If it is not reasonably certain that the ownership of the leased asset will be obtained at the expiration of the lease term depreciation will be accrued during the shorter of the lease term and the remaining useful life of the leased asset. （3）Please refer to notes to the financial statements for the impairment testing method and impairment provision accrual method for right-of-use assets. 31、Safety production costs According to relevant documents from the Ministry of Finance and the State Administration of Work Safety the Group's subsidiaries engaged in the production and sales of polysilicon are based on the actual operating income of the previous year and use an excess regressive method to withdraw production safety expenses monthly: (a) If the operating income is 10 million yuan or less 4.5% shall be withdrawn; 143CSGAnnual Report 2024 (b) The portion of operating income between RMB 10 million and RMB 100 million (inclusive) shall be withdrawn at 2.25%; (c) The portion of operating income between RMB 100 million and RMB 1 billion (inclusive) shall be withdrawn at 0.55 % ; (d) For the portion of operating income above RMB 1 billion 0.2 % will be withdrawn.According to the Administrative Measures for the Extraction and Use of Enterprise Safety Production Expenses (Cai Zi [2022] No. 136) the Group's subsidiaries engaged in mining and processing are based on mining volume.Safety production expense extraction standards: For non-metallic mines open-pit mines at 3 yuan perton underground mines at 8 yuan perton.Safety production expenses are mainly used to improve transform and maintain safety protection equipment and facilities. Safety production expenses are included in the cost of related products or current profits and losses when withdrawn and are also recorded in special reserve accounts. When in use expenditures within the prescribed scope of use will be directly offset against the special reserve when the expenditures are incurred; for capital expenditures expenditures incurred through the accounts of projects under construction will be used until the project is completed and reaches the scheduled availability. When in use they are transferred to fixed assets and the special reserves are offset according to the cost of forming the fixed assets and the corresponding amount of accumulated depreciation is recognized at the same time. This fixed asset will no longer be depreciated in future periods. 32、Significant accounting judgments and estimates The Group continuously evaluates the important accounting estimates and key assumptions adopted based on historical experience and other factors including reasonable expectations for future events. The important accounting estimates and key assumptions that are likely to cause a significant adjustment in the book value of assets and liabilities in the next fiscal year are as follows: Classification of financial assets The Group's significant judgments involved in determining the classification of financial assets include analysis of business models and contractual cash flow characteristics.The Group determines the business model for managing financial assets at the level of financial asset portfolios. Factors considered include the way to evaluate and report the performance of financial assets to key management personnel the risks that affect the performance of financial assets and their management methods and relevant business managers. How to get paid etc.When the Group evaluates whether the contractual cash flows of financial assets are consistent with the basic lending arrangements it makes the following main judgments: whether the time distribution or amount of the principal may change during the duration due to early repayment; whether the interest is only Includes time value of money credit risk other fundamental lending risks and consideration against costs and profits. For example whether the amount of early repayment only reflects the unpaid principal and interest based on the unpaid principal as well as reasonable compensation paid for early termination of the contract. 144CSGAnnual Report 2024 Measurement of expected credit losses on accounts receivable The Group calculates the expected credit losses of accounts receivable through the default risk exposure of accounts receivable and the expected credit loss rate and determines the expected credit loss rate based on the probability of default and the loss given default rate.When determining the expected credit loss rate the Group uses internal historical credit loss experience and other data and adjusts historical data based on current conditions and forward-looking information. When considering forward-looking information the Group uses indicators including the risk of economic downturn changes in the external market environment technical environment and customer conditions. The Group regularly monitors and reviews assumptions related to the calculation of expected credit losses.Impairment of Fixed Assets and Construction in Progress As of the balance sheet date the Company assesses whether there are any indications of impairment for non-current assets other than financial assets. When there are indications that the carrying amount of an asset cannot be recovered impairment testing is conducted.Impairment occurs when the book value of an asset or asset group exceeds its recoverable amount which is the higher of the net amount after deducting disposal costs from fair value and the present value of estimated future cash flows. The net amount after deducting disposal costs from fair value is determined by referencing the sales agreement prices of similar assets in fair transactions or observable market prices minus incremental costs directly attributable to the asset's disposal. Significant judgments are made regarding the expected future cash flow present value including the asset's (or asset group's) output selling price relevant operating costs and the discount rate used in the present value calculation. The Company utilizes all relevant information available to estimate the recoverable amount including forecasts of output selling prices and related operating costs based on reasonable and supportable assumptions.Goodwill impairment The Group assesses whether goodwill is impaired at least annually. This requires an estimate of the value in use of the asset group to which goodwill is assigned. When estimating value in use the Group needs to estimate future cash flows from the asset group and select an appropriate discount rate to calculate the present value of future cash flows.R&D expenditure When determining the amount to be capitalized management must make assumptions regarding the expected future cash generation of the asset the discount rate that should be applied and the expected period of benefit.Deferred tax assets Deferred tax assets should be recognized for all unused tax losses to the extent that it is probable that sufficient taxable profits will be available against which the losses can be utilised. This requires management to use a lot of judgment to estimate the timing and amount of future taxable profits combined with tax planning strategies to determine the amount of deferred income tax assets that should be recognized 33、Changes in Significant Accounting Policies and Accounting Estimates 145CSGAnnual Report 2024 （1）Changes in Significant Accounting Policies 1 Accounting Standards for Business Enterprises Interpretation No. 17 On October 25 2023 The Ministry of Finance issued the "Interpretation No.17 of Accounting Standards for Business Enterprises" (Financial Accounting [2023] No. 21 hereinafter referred to as "Interpretation No. 17") it comes into effect on January 1 2024.The Company has applied the provisions of Interpretation No. 17 from January 1 2024. The implementation of the relevant provisions of Interpretation No. 17 has no material impact on the Company’s financial statements during the reporting period. 2 Accounting Standards for Business Enterprises Interpretation No. 18 On December 6 2024 The Ministry of Finance issued the "Interpretation No.18 of Accounting Standards for Business Enterprises" (Financial Accounting [2024] No. 24 hereinafter referred to as "Interpretation No. 18").Interpretation No. 18 stipulates that when accounting for provisions related to guarantee- type quality assurances that do not constitute separate performance obligations enterprises shall recognize a provision in accordance with the relevant requirements of Accounting Standard for Business Enterprises No. 13—Contingencies. The amount of the provision shall be debited to accounts such as "Cost of Main Operations" or "Cost of Other Operations" and credited to the "Provisions" account. Corresponding disclosures shall be made in the income statement under "Operating Costs" and in the balance sheet under items such as "Other Current Liabilities" "Non-current Liabilities Due Within One Year" and "Provisions." The Grou has applied this provision from the issuance date of Interpretation No. 18 and has made retrospective adjustments.The impact of implementing the above accounting policy on the consolidated income statement for the year 2024 is as follows: Consolidated income statement items ( 2024 ) Impact Amount (RMB) Operating costs 12304134 Sales expenses -12304134 implementing the above accounting policies on the consolidated income statement for 2023 is as follows: Consolidated income statement items ( 2023 ) Before adjustment Adjustment amount After adjustment Operating costs 14141072171 8793337 14149865508 Sales expenses 317702143 -8793337 308908806 IV. Taxes 1、Main taxes and tax rates Category Taxable basis Tax rate Value-added tax (“VAT”) Taxable value-added amount (Taxpayable is calculated using the taxable 3%-13% 146CSGAnnual Report 2024 Category Taxable basis Tax rate sales amount multiplied by the applicable tax rate less deductible VAT input of the current period) Education surtax VAT paid 5% Urban maintenance and construction tax VAT paid 1%-7% Income tax Taxable income 16.5% 25% 2、Tax incentives and approvalsTianjin CSG Energy-Saving Glass Co. Ltd. (hereinafter referred to as “Tianjin Energy-SavingCompany”) passed the re-evaluation of its High and New Technology Enterprise (HNTE) qualification in 2024 and has obtained the *High and New Technology Enterprise Certificate*.The certificate is valid for three years and from 2024 the company is eligible for a reduced enterprise income tax (EIT) rate of 15% for three consecutive years.Dongguan CSG Engineering Glass Co. Ltd. (hereinafter referred to as “DongguanEngineering Company”) passed the HNTE re-evaluation in 2022 and has obtained the *High and New Technology Enterprise Certificate*. The certificate is valid for three years and from 2022 the company is eligible for a 15% EIT rate for three years.Wujiang CSG East China Engineering Glass Co. Ltd. (hereinafter referred to as “WujiangEngineering Company”) passed the HNTE re-evaluation in 2023 and has obtained the *High and New Technology Enterprise Certificate*. The certificate is valid for three years and from 2023 the company is eligible for a 15% EIT rate for three years. Dongguan CSG Solar Glass Co. Ltd. (hereinafter referred to as “Dongguan Solar Company”) passed the HNTE re-evaluation in 2023 and has obtained the *High and New Technology Enterprise Certificate*. The certificate is valid for three years and from 2023 the company is eligible for a 15% EIT rate for three years.Yichang CSG Silicon Materials Co. Ltd. (hereinafter referred to as “Yichang SiliconMaterials Company”) passed the HNTE re-evaluation in 2023 and has obtained the *High and New Technology Enterprise Certificate*. The certificate is valid for three years and from 2023 the company is eligible for a 15% EIT rate for three years.Dongguan CSG Photovoltaic Technology Co. Ltd. (hereinafter referred to as “Dongguan PVCompany”) passed the HNTE re-evaluation in 2022 and has obtained the *High and New Technology Enterprise Certificate*. The certificate is valid for three years and from 2022 the company is eligible for a 15% EIT rate for three years.Hebei Vision Glass Co. Ltd. (hereinafter referred to as “Hebei Vision Company”) passed the HNTE re-evaluation in 2022 and has obtained the *High and New Technology Enterprise Certificate*. The certificate is valid for three years and from 2022 the company is eligible for a 15% EIT rate for three years.Wujiang CSG Glass Co. Ltd. (hereinafter referred to as “Wujiang CSG Company”) passed the HNTE re-evaluation in 2023 and has obtained the *High and New Technology Enterprise Certificate*. The certificate is valid for three years and from 2023 the company is eligible for a 15% EIT rate for three years. 147CSGAnnual Report 2024 Xianning CSG Glass Co. Ltd. (hereinafter referred to as “Xianning Float Glass Company”) passed the HNTE re-evaluation in 2023 and has obtained the *High and New Technology Enterprise Certificate*. The certificate is valid for three years and from 2023 the company is eligible for a 15% EIT rate for three years.Xianning CSG Energy-Saving Glass Co. Ltd. (hereinafter referred to as “Xianning Energy-Saving Company”) passed the HNTE re-evaluation in 2024 and has obtained the *High and New Technology Enterprise Certificate*. The certificate is valid for three years and from 2024 the company is eligible for a 15% EIT rate for three years.Yichang CSG Optoelectronic Glass Co. Ltd. (hereinafter referred to as “YichangOptoelectronics Company”) passed the HNTE re-evaluation in 2024 and has obtained the *High and New Technology Enterprise Certificate*. The certificate is valid for three years and from 2024 the company is eligible for a 15% EIT rate for three years.Yichang CSG Display Devices Co. Ltd. (hereinafter referred to as “Yichang DisplayCompany”) passed the HNTE re-evaluation in 2024 and has obtained the *High and New Technology Enterprise Certificate*. The certificate is valid for three years and from 2024 the company is eligible for a 15% EIT rate for three years.Qingyuan CSG Energy-Saving New Materials Co. Ltd. (hereinafter referred to as “QingyuanEnergy-Saving Company”) passed the HNTE re-evaluation in 2022 and has obtained the *High and New Technology Enterprise Certificate*. The certificate is valid for three years and from 2022 the company is eligible for a 15% EIT rate for three years.Hebei CSG Glass Co. Ltd. (hereinafter referred to as “Hebei CSG Company”) passed the HNTE re-evaluation in 2024 and has obtained the *High and New Technology Enterprise Certificate*. The certificate is valid for three years and from 2024 the company is eligible for a 15% EIT rate for three years.Xianning CSG Optoelectronic Glass Co. Ltd. (hereinafter referred to as “XianningOptoelectronics Company”) passed the HNTE re-evaluation in 2022 and has obtained the *High and New Technology Enterprise Certificate*. The certificate is valid for three years and from 2022 the company is eligible for a 15% EIT rate for three years.Zhaoqing CSG Energy-Saving Glass Co. Ltd. (hereinafter referred to as “Zhaoqing Energy-Saving Company”) was recognized as a High and New Technology Enterprise in 2022 and has obtained the *High and New Technology Enterprise Certificate*. The certificate is valid for three years and from 2022 the company is eligible for a 15% EIT rate for three years.Sichuan CSG Energy-Saving Glass Co. Ltd. (hereinafter referred to as “Sichuan Energy-Saving Company”) enjoys the Western Development enterprise income tax incentive and applies an EIT rate of 15% for the current year.Chengdu CSG Glass Co. Ltd. (hereinafter referred to as “Chengdu CSG Company”) enjoys the Western Development enterprise income tax incentive and applies an EIT rate of 15% for the current year.Xi’an CSG Energy-Saving Glass Technology Co. Ltd. (hereinafter referred to as “Xi’anEnergy-Saving Company”) enjoys the Western Development enterprise income tax incentive and applies an EIT rate of 15% for the current year. 148CSGAnnual Report 2024 Guangxi CSG New Energy Materials Technology Co. Ltd. (hereinafter referred to as “Guangxi New Energy Materials Company”) enjoys the Western Development enterprise income tax incentive and applies an EIT rate of 15% for the current year.Qinghai CSG New Energy Technology Co. Ltd. (hereinafter referred to as “Qinghai NewEnergy Company”) enjoys the Western Development enterprise income tax incentive and applies an EIT rate of 15% for the current year.Yichang CSG New Energy Co. Ltd. (“Yichang New Energy Company”) Zhaoqing CSG New Energy Technology Co. Ltd. (“Zhaoqing New Energy Company”) Xianning CSG Photovoltaic New Energy Co. Ltd. (“Xianning PV Company”) and Anhui CSG Photovoltaic Energy Co. Ltd. (“Anhui PV Company”) fall under the category of key public infrastructure projects supported by the state as specified in Article 87 of the *Implementation Regulationsof the Enterprise Income Tax Law* and are entitled to the “three-year exemption and three-year half-reduction” tax incentive. That is from the tax year in which the first production and business income is earned they are exempt from EIT for the first to third years and subject to a 50% reduction in EIT for the fourth to sixth years.Anhui CSG Quartz Materials Co. Ltd. (hereinafter referred to as “Anhui Quartz Company”) was recognized as a High and New Technology Enterprise in 2023 and has obtained the *High and New Technology Enterprise Certificate*. The certificate is valid for three years and from 2023 the company is eligible for a 15% EIT rate for three years.Anhui CSG New Energy Materials Technology Co. Ltd. (hereinafter referred to as “AnhuiNew Energy Company”) was recognized as a High and New Technology Enterprise in 2023 and has obtained the *High and New Technology Enterprise Certificate*. The certificate is valid for three years and from 2023 the company is eligible for a 15% EIT rate for three years.Dongguan CSG Intelligent Equipment Co. Ltd. (hereinafter referred to as “DongguanEquipment Company”) was recognized as a High and New Technology Enterprise in 2024 and has obtained the *High and New Technology Enterprise Certificate*. The certificate is valid for three years and from 2024 the company is eligible for a 15% EIT rate for three years.According to the *Announcement on the Policy of Additional Deduction of Input VAT for Advanced Manufacturing Enterprises* (Announcement No. 43 [2023] of the Ministry of Finance and the State Taxation Administration) the Company’s subsidiaries qualified as High and New Technology Enterprises are entitled to an additional deduction of 5% of the deductible input VAT from the VAT payable during the period from January 1 2023 to December 31 2027.V. Notes to Consolidated Financial Statements 1、Cash at bank and on hand Item 31 December 2024 31 December 2023 Cash at bank 3367873386 3051261655 Other Currency Funds 53654096 25512563 Total 3421527482 3076774218 Including: Total overseas deposits 63275963 31005196 149CSGAnnual Report 2024 At the end of the period the amount of money used for deposits and freezes by this group was RMB RMB53654096. 2、Financial assets at fair value through profit or loss Item 31 December 2024 31 December 2023 Financial assets measured at fair value through profit or loss 96000000 Including: Structured deposits 96000000 Total 96000000 3、Notes Receivable 31 December 2024 31 December 2023 Item Carrying Amount Provision Book value Carrying Amount Provision Book value Bank acceptance 1042625567 1042625567 1510946903 1510946903 Commercial acceptance 99109697 832521 98277176 84258766 1685175 82573591 Total 1141735264 832521 1140902743 1595205669 1685175 1593520494 （1）Notes eceivable pledged at the end of the period Item Pledged amount Bank Acceptance 871417785 Total 871417785 （2）Notes receivable that have been endorsed or discounted by the Group but have not yet matured at the end of the period.Item Amount not derecognized at the end of the period Bank Acceptance 178499661 Total 178499661 （3）Classification by bad debt accrual method 31 December 2024 Category Carrying Amount Provision Book value Amount Proportion(%) Amount Expected creditloss rate (%) Provision for bad debts on an individual basis Provision for bad debts on a portfolio 1141735264 100 832521 0.07 1140902743 basis Including: Bank Acceptance 1042625567 91 1042625567 Commercial Acceptance 99109697 9 832521 0.84 98277176 Total 1141735264 100 832521 0.07 1140902743 150CSGAnnual Report 2024 Continued: 31 December 2023 Category Carrying Amount Provision for bad debts Book value Amount Proportion(%) Amount Expected creditloss rate (%) Provision for bad debts on an individual basis Provision for bad debts on a portfolio 1595205669 100 1685175 0.11 1593520494 basis Including: Commercial Acceptance 84258766 5 1685175 2 82573591 Bank Acceptance 1510946903 95 1510946903 Total 1595205669 100 1685175 0.11 1593520494 （4）Bad debt provisions accrued recovered or reversed in the current period Provision amount 1 January 2024 1685175 Accrual for this period 832521 Recovered or reversed back in this period 1685175 31 December 2024 832521 （5）There is no actual write-off of notes receivable in this period 4、Accounts receivable （1）Disclosure by age Aging 31 December 2024 31 December 2023 Within 1 year 1570990322 1799401050 1 to 2 years 34464346 42338430 2 to 3 years 36721437 156855077 Over 3 years 220964507 81310642 Total 1863140612 2079905199 Less: provision for bad debts 176512931 198108791 Total 1686627681 1881796408 （2）Classified disclosure according to bad debt accrual method 31 December 2024 Category Carrying Amount Provision Amount Proportion Book value (%) Amount Expected credit loss rate (%) Provision for bad debts on an individual basis 169387012 9 155963004 92 13424008 151CSGAnnual Report 2024 31 December 2024 Category Carrying Amount Provision Book value Amount Proportion(%) Amount Expected credit loss rate (%) Provision for bad debts on a portfolio 1693753600 91 20549927 1.21 1673203673 basis Including: - Receivables from unrelated parties 1693753600 91 20549927 1.21 1673203673 Total 1863140612 100 176512931 9 1686627681 Continued: 31 December 2023 Category Carrying Amount Provision Amount Proportion(%) Amount Expected credit Book value loss rate (%) Provision for bad debts on an individual basis 176357014 8 160074840 91 16282174 Provision for bad debts on a portfolio 1903548185 92 38033951 2 1865514234 basis Including: Receivables from unrelated parties 1903548185 92 38033951 2 1865514234 Total 2079905199 100 198108791 10 1881796408 Accounts receivable for which bad debt provision is made on an individual basis 31 December 2024 Name Carrying Provision for Expected Amount bad debts credit loss Basis for accrualrate (%) This is mainly due to the fact that the commercial acceptance bills endorsed by customers and issued by Evergrande and its subsidiaries could Total of not be redeemed and were transferred single-item 169387012 155963004 92 from notes receivable to accountsaccrual receivable as well as some receivables customers from customers due to business disputes or deterioration of customer operations for which bad debt provisions were partially or fully made.Continued: 31 December 2023 Name Carrying Provision for Expected credit Amount bad debts loss rate (%) Basis for accrual 152CSGAnnual Report 2024 31 December 2023 Name Carrying Provision for Expected credit Amount bad debts loss rate (%) Basis for accrual This is mainly due to the fact that the commercial acceptance bills endorsed by customers and issued by Evergrande and its subsidiaries Total of could not be redeemed and were single-item transferred from notes receivable accrual 176357014 160074840 91 to accounts receivable as well as customers some receivables from customersdue to business disputes or deterioration of customer operations for which bad debt provisions were partially or fully made.Accounts receivable with provision for bad debts on a portfolio basis Portfolio accrual items: accounts receivable from non-related parties 31 December 2024 31 December 2023 Carrying Provision for Expected Carrying Provision Expected Amount bad debts credit loss Amount for bad credit lossrate (%) debts rate (%) Combined customers 1693753600 20549927 1.21 1903548185 38033951 2 （3）Bad debt provision accrued recovered or reversed in the current period Bad debt provision amount 1 January 2024 198108791 Accrual for this period 17481834 Recovered or reversed in this period 39006068 Write-off in this period 71626 31 December 2024 176512931 （4）Actual write-off of accounts receivable in the current period Item Write-off amount Accounts receivable actually written off 71626 153CSGAnnual Report 2024 （5）The top five companies with closing balances of accounts receivable collected by debtors Ending balance of bad accounts Contract Ending balances % of the total debt provision Unit Name receivable assets of accounts ending balance of for accountsEnding Ending receivable and accounts receivable receivable and balance balance contract assets and contract assets provision for impairment of contract assets Total amount of accounts receivable of the top 5 in 619561189 619561189 33 6351188 terms of balance Total 619561189 619561189 33 6351188 5、Receivables Financing Item 31 December 2024 31 December 2023 Notes receivable 798603111 529945623 Closing fair value 798603111 529945623 The Group discounts and endorses part of the bank acceptance bills based on its daily capital management needs so the subsidiary's bank acceptance bills are classified as financial assets measured at fair value with changes included in other comprehensive income.The Group has no single bank acceptance bill for which impairment provision is made. At the end of the current period the Group believes that there is no significant credit risk in the bank acceptance bills held and no significant losses will be incurred due to bank defaults. 6、Prepayment （1）Prepayments are disclosed based on aging 31 December 2024 31 December 2023 Aging Amount Proportion% Amount Proportion% Within 1 year 119835994 98 155075823 100 1 to 2 years 1856074 2 395256 2 to 3 years 14430 1766 over 3 years 1766 3800 Total 121708264 100 155476645 100 （2）The top five units with closing balance of prepayments collected by prepayment objects Item 31 December 2024 Percentage in total advances tosuppliers balance Total prepayments of the top five balances 93666540 77 7、Other receivables Item 31 December 2024 31 December 2023 154CSGAnnual Report 2024 Item 31 December 2024 31 December 2023 Other receivables 165872735 177957033 （1）Disclosure by age Aging 31 December 2024 31 December 2023 Within 1 year (including 1 year) 13434205 22612560 1 to 2 years 4846886 1819789 2 to 3 years 1357202 20535190 3 to 4 years 14817275 1058546 4 to 5 years 594602 450650 More than 5 years 195558275 198440032 Total 230608445 244916767 ( 2) Disclosure according to the nature of the payment Item 31 December 2024 31 December 2023 Talent Fund Receivable (Note ) 171000000 171000000 Disbursements 31056939 40125087 Advance payment 10366164 10366164 Refundable deposits 9026138 9033990 Reserve loan 567991 594514 Others 8591213 13797012 Total 230608445 244916767 Less: provision for bad debts 64735710 66959734 Total 165872735 177957033 Note: The funds in question are government subsidies granted to the Group. The Company entrusted its wholly-owned subsidiary Yichang CSG Silicon Material Co. Ltd. to receive the funds. In 2014 the Yichang High-Tech Zone Administrative Committee disbursed the entire amount of the funds to Yichang CSG Silicon Material. After receiving the funds Yichang CSG Silicon Material Co. Ltd. transferred the entire amount to Yichang Hongtai Real Estate Co. Ltd. without proper approval from the Company’s Board of Directors or other authorized bodies at the time. The transfer occurred between February 21 2014 and April 28 2014.On December 15 2021 the Company filed a tort compensation lawsuit against Zeng Nan and Yichang Hongtai Real Estate Co. Ltd. The Shenzhen Intermediate People's Court officially accepted the case on January 28 2022. The first-instance trial was concluded on June 21 2022 at the Shenzhen Intermediate People’s Court. On June 4 2024 the Company received the Civil Judgment from the Shenzhen Intermediate People’s Court for the first instance which ruled to dismiss all of the Company’s claims. In June 2024 the Company filed an appeal with the Guangdong High People’s Court. The second-instance hearing was held on September 12 2024 and the case is currently under second-instance proceedings. (3) Provision for bad debts Bad debt provision at the end of the period in the first stage 155CSGAnnual Report 2024 Expected credit Category Book balance loss rate in the Bad debtnext 12 months provision Book value (%) Bad debt provision is made on an individual basis Bad debt provision by portfolio 47084604 2 911869 46172735 Unrelated party portfolio 47084604 2 911869 46172735 There is no bad debt provision in the second stage at the end of the period Bad debt provision at the third stage at the end of the period Expected Category Book balance credit loss rate Bad debtfor the entire provision Book value life cycle ( % ) Bad debt provision is made on an individual basis Company A 171000000 30 51300000 119700000 Unit 1 1134572 100 1134572 Individual 1 322905 100 322905 Company D 10366164 100 10366164 Unit 2 700200 100 700200 Total 183523841 35 63823841 119700000 Bad debt provision in the first stage at the end of the previous year Expected credit Category Book balance loss rate in the Bad debtnext 12 months provision Book value (%) Bad debt provision is made on a single basis Bad debt provision by portfolio 56522786 2 1050923 55471863 Unrelated party portfolio 56522786 2 1050923 55471863 There is no bad debt provision in the second stage at the end of the previous year Bad debt provision in the third stage at the end of the previous year Expected credit Category Book balance loss rate for the Bad debtentire life cycle provision Book value (%) Bad debt provision is made on a single basis Company A 171000000 30 51300000 119700000 Company D 10366164 100 10366164 Unit 3 5570340 50 2785170 2785170 Individual 1 322905 100 322905 Unit 1 1134572 100 1134572 156CSGAnnual Report 2024 Expected credit Category Book balance loss rate for the Bad debtentire life cycle provision Book value (%) Total 188393981 35 65908811 122485170 (4) Bad debt provision made recovered or reversed in this period Phase 1 Phase II Phase 3 Bad debt provision in the next 12 Expected credit losses Expected credit losses for the entire life ( no for the entire life cycle total months credit impairment ) ( credit impairment hasoccurred ) Beginning balance 1050923 65908811 66959734 Beginning balance in this period Provision for this period 190153 700200 890353 Transfer back in this period 329207 2339178 2668385 Write-offs in this period 445992 445992 Ending balance 911869 63823841 64735710 (5) Other receivables actually written off during the period item Amount of write-off Other receivables actually written off 445992 (6) The top five entities with the highest ending balance of other receivables by debtor Proportion of the Unit Name Nature of Other receivables total ending Ending balance Funds ending balance Aging balance of other of bad debt receivables (%) provision Company A Talent FundReceivable 171000000 5+ years 74 51300000 Government Advance agency B payment 14000000 3-4 years 6 280000 Government Advance agencies C payment 11556004 5+ years 5 231120 Company D Prepayment 10366164 5+ years 4 10366164 Company E Margin 1800000 5+ years 1 36000 Total 208722168 90 62213284 8、Inventories （1）Inventory Classification 31 December 2024 Item Carrying Amount Preparation for pricedecline Book value Raw materials 552653727 46114817 506538910 157CSGAnnual Report 2024 31 December 2024 Item Carrying Amount Preparation for pricedecline Book value Work in progress 36536670 - 36536670 Finished goods 1007594584 51140704 956453880 Turnover materials 88481788 183220 88298568 Total 1685266769 97438741 1587828028 Continued 31 December 2023 Item Carrying Amount Preparation for pricedecline Book value Raw materials 568803335 1935371 566867964 Work in progress 29941046 - 29941046 Finished goods 928685781 28179241 900506540 Turnover materials 93093127 183882 92909245 Total 1620523289 30298494 1590224795 （2）Provision for inventories Increased in this Decrease in this Item 1 January 2024 issue period 31 December 2024 Provision Transfer or resale Raw materials 1935371 52844929 8665483 46114817 Finished goods 28179241 94276047 71314584 51140704 Turnover materials 183882 662 183220 Total 30298494 147120976 79980729 97438741 Provision for inventory decline (continued) Specific basis for determining net Reasons for the reversal or write- realizable value/residual off of inventory depreciationItem consideration and costs to be reserves/contract performance cost incurred impairment reserves in the currentperiod Raw materials Estimated selling price of finishedproduct less completion costs and taxes Realized sales Finished goods Estimated selling price of the productminus sales tax Realized sales Turnover materials The recoverable amount is 0 Use or scrap 9、Noncurrent Assets Due within One Year Item 31 December 2024 31 December 2023 Large-denomination certificates of deposit maturing within one year 84191224 10、Other current assets 158CSGAnnual Report 2024 Item 31 December 2024 31 December 2023 VAT to be deducted 391080026 260361670 Enterprise income tax prepaid 57078630 18127608 VAT input to be recognised 27458400 33577420 Term deposits with a maturity of less than one year 40000000 Total 475617056 352066698 The new large amount of value-added tax to be deducted in this period is mainly caused by the large new engineering procurement expenditure of subsidiary Qinghai CSG New Energy Technology Co. Ltd. 11、Investment properties （1）Investment properties measured at fair value Item Houses buildings and relatedland use rights 1. 1 January 2024 290368105 2. Changes in this period 3344348 add: Other additions 3835926 reduce: Changes in fair value 491578 3. 31 December 2024 293712453 （2）Failure to obtain property rights certificate none 12、Fixed assets Item 31 December 2024 31 December 2023 Fixed assets 13166391449 13145568631 Total 13166391449 13145568631 (1) Fixed assets Item Buildings Mechinery and Motor vehicles andequipment others Total Original book value: 1. 1 January 2024 6308032051 16145236673 369115738 22822384462 2. Increase amount in this period 746688199 1037527297 43349146 1827564642 (1) Purchase 23850603 31783065 55633668 (2) Transfer of projects under 741540152 1013676694 6595440 1761812286 construction (3) Other additions 5148047 4970641 10118688 3. Reduction amount in this period 5110586 1311219415 8083686 1324413687 (1) Disposal or scrapping 1335279 511037383 7679013 520051675 159CSGAnnual Report 2024 Item Buildings Mechinery and Motor vehicles andequipment others Total (2) Transfer to construction in 3775307 786042408 67089 789884804 progress ( 3 ) Other reductions 14139624 337584 14477208 4. 31 December 2024 7049609664 15871544555 404381198 23325535417 Accumulated depreciation 1. 1 January 2024 1411838090 6622522037 273719361 8308079488 2. Increase amount in this period 218442729 907741082 42570000 1168753811 (1) Provision 218402893 907732148 42183202 1168318243 (2) Other additions 39836 8934 386798 435568 3. Reduction amount in this period 1915280 886929157 7699814 896544251 (1) Disposal or scrapping 409706119 7243147 416949266 (2) Transfer to construction in 1913617 477011679 1453 478926749 progress ( 3 ) Other reductions 1663 211359 455214 668236 4. 31 December 2024 1628365539 6643333962 308589547 8580289048 Impairment provision 1. 1 January 2024 152839987 1215616873 279483 1368736343 2. Increase amount in this period 260057655 642483 260700138 (1) Accrual 256582467 223437 256805904 (2) Other additions 3475188 419046 3894234 3. Reduction amount in this period 1335279 49246143 139 50581561 (1) Disposal or scrapping 1335279 49246143 139 50581561 (2) Other reductions 4. 31 December 2024 151504708 1426428385 921827 1578854920 Book value 1. Book value at the end of the period 5269739417 7801782208 94869824 13166391449 2. Book value at the beginning of the 4743353974 8307097763 95116894 13145568631 period Note: * Yichang Silicon Materials a subsidiary of the Group conducted an impairment test on fixed assets in this period. The recoverable amount was determined based on the present value of the expected future cash flows. The present value of the expected future cash flows of the asset group was determined by discounting the expected future cash flows generated by the asset group during its continued use and upon its final disposal at an appropriate discount rate.Among them the selection of the discount rate of Yichang Silicon Materials adopts the pre- tax weighted average cost of capital which is calculated according to the pre-tax cash flow 160CSGAnnual Report 2024 using the pre-tax discount rate discount value = the post-tax cash flow using the post-tax discount rate discount value. The post-tax discount rate adopts the weighted average cost of capital valuation model ("WACC") and the calculation result is 8.53 % .This forecast period is the estimated remaining useful life of the main production line equipment.* Dongguan CSG Solar a subsidiary of the Group conducted an impairment test on fixed assets during the current period. The recoverable amount was determined based on the fair value less the net disposal costs. The fair value was determined based on the reasonable quotations obtained by asking the buyers in the market. The disposal costs mainly considered stamp duty legal fees property transaction fees appraisal fees management fees and other expenses.* Wujiang CSG and other subsidiaries of the Group conducted impairment test on fixed assets in this period . The recoverable amount was determined by deducting the net amount of disposal expenses from the fair value. The fair value was determined by asking the buyer for a reasonable price in the market. The disposal expenses included various taxes and necessary expenses to make the assets available for sale such as cleaning and maintenance expenses. (2) Fixed assets for which property certificates have not been obtained Reasons for not item Book value obtaining the title certificate The materials have been submitted but have not Houses and buildings 1317785031 yet been processed or therelevant land use rights certificate has not yet been obtained. 13、Construction in progress （1）Details of projects under construction 31 December 2024 31 December 2023 Item Carrying Impairmen net book Carrying Impairmen net book Amount t provision value Amount t provision value high-purity silicon project with an annual output of 50000 tons was built in 3644745822 3644745822 2646430785 2646430785 Haixi Prefecture Qinghai Province Yichang CSG Polysilicon Technical Transformation 644181303 217878698 426302605 507815356 56888576 450926780 Project Guangxi Beihai Photovoltaic Green Energy Industrial Park 373394252 373394252 728103811 728103811 (Phase I) Project Wujiang float glass (650TD) photovoltaic calendering line technical transformation 169371968 169371968 154717 154717 project Chengdu CSG 900T/D line cold repair and technical 150255439 150255439 transformation project 161CSGAnnual Report 2024 31 December 2024 31 December 2023 Item Carrying Impairmen net book Carrying Impairmen net book Amount t provision value Amount t provision value Qingyuan CSG Phase I Upgrade and Technical 233127020 126553412 106573608 228055647 116909920 111145727 Transformation Project Xianning Energy Saving Production Line Reconstruction and 4226026 4226026 25585501 25585501 Expansion Project Dongguan Photovoltaic Building B 450MW PERC Cell Technology Upgrade 186866743 184998076 1868667 186866743 184998076 1868667 Project Xi'an CSG Energy-saving Glass Production Line 222583993 222583993 Project Anhui Fengyang Newly Built 37.6MW Distributed Photovoltaic Power 83354432 83354432 Generation Project Other Projects 477462133 3825388 473636745 59057376 4195369 54862007 total 5883630706 533255574 5350375132 4688008361 362991941 4325016420 162CSGAnnual Report 2024 ( 2) Movement of significant projects of construction in progress Transfer to fixed Accumulated Including: Current Project Beginning Increase in this amount of Capitalized amount period Name balance period assets during theyear borrowing costs of borrowing costs in interest Ending balance capitalized this year capitalizationrate % Guangxi Beihai Photovoltaic Green Energy 728103811 773310910 1128020469 15760122 11137625 1.99 373394252 Industrial Park (Phase I) Project high-purity silicon project with an annual output of 50000 tons 2646430785 1036852482 38537445 50640367 46388398 4.15 3644745822 was built in Haixi Prefecture Qinghai Province Total 3374534596 1810163392 1166557914 66400489 57526023 / 4018140074 163CSGAnnual Report 2024 Changes in important projects under construction ( continued): The proportion of Project Name Budget the total Projectinvestment in progress % Funding the project to the budget Guangxi Beihai Photovoltaic Green Own funds and Energy Industrial Park (Phase I) 4942051800 33 33 loans from Project financialinstitutions high-purity silicon project with an Own funds and annual output of 50000 tons was built in Haixi Prefecture Qinghai 4498192210 81 81 loans from financial Province institutions total 9440244010 (3) Impairment provision for construction in progress Provision item Beginning for this Other Reduction in Endingbalance period additions this period balance Dongguan Photovoltaic Building B 450MWPBRC Battery Technology Upgrade 184998076 184998076 Project Qingyuan CSG Phase I Cold Repair Technical 116909920 9646348 2856 126553412 Transformation Project Other Projects 4195369 3535529 3905510 3825388 Yichang CSG Polysilicon Technology Transformation 56888576 160990122 217878698 Project total 362991941 174171999 3908366 533255574 * Yichang Silicon Materials a subsidiary of the Group conducted impairment test on construction in progress during the current period. The recoverable amount was determined based on the present value of the expected future cash flows. The present value of the expected future cash flows of the asset group was determined by discounting the expected future cash flows generated by the asset group during its continued use and upon its final disposal at an appropriate discount rate.Among them the selection of the discount rate of Yichang Silicon Materials adopts the pre- tax weighted average cost of capital which is calculated according to the pre-tax cash flow using the pre-tax discount rate discount value = the post-tax cash flow using the post-tax discount rate discount value. The post-tax discount rate adopts the weighted average cost of capital valuation model ("WACC") and the calculation result is 8.53 % .This forecast period is the estimated remaining useful life of the main production line equipment. 164CSGAnnual Report 2024 * Qingyuan Energy Conservation a subsidiary of the Group conducted impairment test on construction in progress during the current period. The recoverable amount was determined based on the present value of the expected future cash flows. The present value of the expected future cash flows of the asset group was determined by discounting the expected future cash flows generated by the asset group during its continued use and upon its final disposal at an appropriate discount rate.Among them the selection of Qingyuan Energy Saving's discount rate adopts the pre-tax weighted average cost of capital which is calculated according to the pre-tax cash flow using the pre-tax discount rate discount value = the post-tax cash flow using the post-tax discount rate discount value. The post-tax discount rate adopts the weighted average cost of capital valuation model ("WACC") and the calculation result is 8.34 % .The forecast period is the service life of the main production line equipment. 14、Right-of-use assets Item Land Buildings Rental Other Total Original book value: 1. 1 January 2024 21823035 2984415 24807450 2. Increased amount in this period 35104610 11027771 1381893 47514274 3. Reduction amount in this period 4. Closing balance 56927645 14012186 1381893 72321724 Accumulated depreciation 1. 1 January 2024 3020601 149221 3169822 2. Increase amount in this period 1908595 1684710 753760 4347065 (1) Accrual 1908595 1684710 753760 4347065 3. Reduction amount in this period 4. Closing balance 4929196 1833931 753760 7516887 Impairment provision 1. 1 January 2024 2. Increase amount in this period 3. Reduction amount in this period 4. Closing balance Book value 1. Closing book value 51998449 12178255 628133 64804837 2. Book value at the beginning of the period 18802434 2835194 21637628 15、Intangible assets （1）Intangible assets 165CSGAnnual Report 2024 Patents and Item Land use rights proprietary Exploitation technologies rights Others Total Original book value 1. Opening balance 1469814142 563753185 1091671546 72584426 3197823299 2. Increased amount in this period 11046858 9674010 20720868 ( 1 ) Purchase 11046858 3613574 14660432 ( 2) Others 6060436 6060436 3. Amount of reduction in this 46850 46850 period ( 1 ) Others 46850 46850 4. Ending balance 1480861000 563753185 1091671546 82211586 3218497317 Accumulated Amortization - 1. Opening balance 293150658 262978745 40776980 56056887 652963270 2. Increased amount in this period 30773474 34228382 77021309 4922639 146945804 ( 1 ) Provision 30773474 34228382 77021309 4922639 146945804 3. Amount of reduction in this - period ( 1 ) Disposal - 4. Ending balance 323924132 297207127 117798289 60979526 799909074 Impairment Provision - 1. Opening balance 54316431 13374 54329805 2. Increased amount in this period 2983345 2983345 3. Amount of reduction in this - period 4. Ending balance 57299776 13374 57313150 Book Value - 1. Book value at the end of the period 1156936868 209246282 973873257 21218686 2361275093 2. Beginning book value 1176663484 246458009 1050894566 16514165 2490530224 （2）Land use rights without property rights certificates item Bookvalue Reasons for not obtaining the title certificate Land use rights 3985852 The management of the Company believes that there areno substantial legal obstacles to the application of the 166CSGAnnual Report 2024 item Bookvalue Reasons for not obtaining the title certificate relevant land use rights certificates and that it will not cause any material adverse impact on the operations of the Group. 16、Goodwill （1）Original book value of goodwill Increased in this Decrease Name of the invested unit or matters 1 January issue in this forming goodwill 2024 period 31 December Formed by 2024 business merger Dispose Tianjin CSGArchitectural Glass Co.Ltd 3039946 3039946 Xianning CSG Photoelectric 4857406 4857406 Shenzhen CSG Display 389494804 389494804 Guangdong Licheng Company 696000 696000 Total 398088156 - - 398088156 （2）Provision for impairment of goodwill Increased in this Decrease in Name of the invested unit or matters 1 January 2024 period this period 31 Decemberforming goodwill Accrual 2024 Provision Disposal Shenzhen CSG Display 389494804 389494804 Total 389494804 - - 389494804 17、Long-term prepaid expenses Decrease in this Item 1 January 2024 Increased in this period issue Amortization for 31 December 2024the current period Various prepaid expenses 18764429 61715185 9224629 71254985 18、Deferred tax assets and liabilities （1）Deferred income tax assets before offsetting Item 31 December 2024 31 December 2023 167CSGAnnual Report 2024 Deductible/taxable temporary Deferred tax Deductible/taxable temporary Deferred tax differences assets/liabilities differences assets/liabilities Deferred tax assets: Provision for asset impairments 909339984 136694548 988603433 149485849 Deductible losses 1040260054 177300541 500056218 88815735 Government grants 230038184 34948104 171767926 26346666 Accrued expenses 8572883 1285932 6854739 1028211 Depreciation of fixed assets etc 142759612 22098978 124810353 19386825 Total 2330970717 372328103 1792092669 285063286 Deferred tax liability: Depreciation of fixed assets 493147552 74317475 571131285 86841423 Changes in the fair value of Investment properties 368745675 92186419 368564944 55284742 Total 861893227 166503894 939696229 142126165 （2）Deferred tax assets or liabilities presented net of offsets The amount of Closing The offset The balance of offset of deferred balance of amount of deferred income Item income tax assets deferred deferred income tax assets or and liabilities at income tax tax assets and liabilities at the the end of the assets or liabilities at the end of the period liabilities after end of the previous yearoffsetting previous year after offsetting Deferred tax assets 62333037 309995066 62038255 223025031 Deferred tax liabilities 62333037 104170857 62038255 80087910 （3）Details of deductible temporary differences and deductible losses that have not been recognized as deferred income tax assets Item 31 December 2024 31 December 2023 Deductible temporary differences 1093221903 730328356 Deductible losses 430583379 438025957 Total 1523805282 1168354313 （4）Deductible losses that have not been recognized as deferred income tax assets will expire in the following years Year 31 December 2024 31 December 2023 Notes 2024?103008917 2025?191372556273308348 2026?8873386356222241 2027?58698233524904 2028?49615474961547 168CSGAnnual Report 2024 Year 31 December 2024 31 December 2023 Notes 2029?86817180 Total 430583379 438025957 19、Other non-current assets Item 31 December 2024 31 December 2023 Prepayment for engineering equipment 92818456 390090354 Prepayment for lease of land use rights 6510000 6510000 Total 99328456 396600354 20、Assets with restricted ownership or use rights 31 December 2024 Item Carrying Amount Book value Restricted type restrictedsituation Cash at bank and Circulation restrictions on hand 53654096 53654096 such as deposits and Monetary freezes Funds Notes Receivable 871417785 871417785 Staking restrictions NotesReceivable Fixed assets 411546518 96468240 Financial leasingrestrictions Fixed assets Construction in 618442257 618442257 Financial leasing Constructionprogress restrictions in progress Total 1955060656 1639982378 Continued: 31 December 2023 Item Carrying Amount Book value Restricted type restrictedsituation Cash at bank and Circulation restrictions on hand 25512563 25512563 such as deposits and Monetary freezes Funds Notes Receivable 1157485085 1157485085 Staking restrictions NotesReceivable Fixed assets 416947659 106982081 Financial leasingrestrictions Fixed assets Total 1599945307 1289979729 21、Short-term loans （1）Short-term loan classification Item 31 December 2024 31 December 2023 Guaranteed Loan 510679484 320893730 Credit Loan 39000000 108426590 Discounted bills 313341815 7533263 169CSGAnnual Report 2024 Item 31 December 2024 31 December 2023 Ultra-short-term financing bills 300000000 Total 1163021299 436853583 22、Notes Payable Type 31 December 2024 31 December 2023 Bank acceptance 1861933756 1950516278 Commercial acceptance 295136551 90836911 Supply Chain Finance Bills 87343448 Total 2244413755 2041353189 23、Accounts payable Item 31 December 2024 31 December 2023 Materials payable 936163974 938666542 Project payment payable 995409551 1206275761 Equipment payable 930083183 994552522 Freight payable 172397226 143114233 Payable water and electricity bills 47104510 50982984 other 10867353 8032560 Total 3092025797 3341624602 Among them important accounts payable with an age of more than 1 year item Ending balance Reasons for not being repaid orcarried forward As the relevant project Project payment and equipment 644087374 settlement has not beenpayment etc. completed it has not been settled yet. 24、Contract liabilities Item 31 December 2024 31 December 2023 Contract liabilities 354215784 362538795 25、Payroll payable Item 1 January 2024 Increased in Decrease in this 31 Decemberthis issue period 2024 A. Short-term compensation 480172235 1995006787 2134362460 340816562 B. Post-employment benefits- Defined contribution plans 202867498 202867498 payable C. Termination benefits 3165561 28177824 24390481 6952904 Total 483337796 2226052109 2361620439 347769466 170CSGAnnual Report 2024 （1）Short-term compensation Item 1 January Increased in Decrease in this 31 December2024 this issue period 2024 1.Wages and salaries bonus allowances and subsidies 455508551 1825742605 1967982898 313268258 2. Social security 86872413 86872413 Including:Medical insurance 75481098 75481098 Work injury insurance 9663798 9663798 Maternity insurance 1727517 1727517 3. Housing Provident Fund 880089 58102272 57801191 1181170 4. Labour union expenditure and Personnel education 23783595 24289497 21705958 26367134 Total 480172235 1995006787 2134362460 340816562 （2）Defined Contribution Plan Item 1 January 2024 Increased in Decrease in this 31 Decemberthis issue period 2024 Post-employment benefits-defined contribution plan 1. Basic pensions 194543647 194543647 2. Unemployment insurance 8323851 8323851 Total 202867498 202867498 26、Taxes payable Taxes 31 December 2024 31 December 2023 VAT 25325222 44410002 Enterprise income tax payable 24126663 50021929 Individual income tax payable 5589497 6633485 Urban maintenance and construction tax payable 1398523 2667504 Education surtax payable 1150913 2209407 Property tax payable payable 8439364 8590406 Environmental protection tax payable 1331521 1842557 Others 6326659 7032123 Total 73688362 123407413 27、Other payables Item 31 December 2024 31 December 2023 Interest payable 8946479 8751408 Other payables 303870052 475990469 Total 312816531 484741877 171CSGAnnual Report 2024 （1）Interest payable Item 31 December 2024 31 December 2023 Interest of long-term borrowings with periodic payments of interest and return 7929612 8082760 of principal at maturity Interest of short-term borrowings 1016867 668648 Total 8946479 8751408 (2) Other accounts payable (Disclosured by nature) Item 31 December 2024 31 December 2023 Guarantee deposits received from construction contractors 200015615 351439479 Accrued cost of sales(note)s 62190968 67861475 Temporary receipts for third parties 7913094 7277368 Payable for contracted labor costs 7240931 27689963 others 26509444 21722184 Total 303870052 475990469 Note: This item mainly includes various expenses that have been incurred but for which no invoices have been obtained at the end of the period including water and electricity charges professional service fees travel expenses etc. 28、Current portion of non-current libilities Item 31 December 2024 31 December 2023 Current portion of long-term borrowings 2081081249 1206872898 Current portion of long-term account 84003271 40939718 payable Lease liabilities due within one year 3772437 1079363 Total 2168856957 1248891979 29、Other current liabilities Item 31 December 2024 31 December 2023 Notes that derecognised 178499661 288534731 Output VAT to be transferred 40029672 44121680 Supply Chain Finance Bills 121676275 Total 218529333 454332686 30、Long-term borrowings Item 31 December 2024 31 December 2023 172CSGAnnual Report 2024 Item 31 December 2024 31 December 2023 Guaranteed Loan 6020234621 5478771574 Credit Loan 2212455100 1949750000 Total 8232689721 7428521574 Less: Long-term borrowings due within one year 2081081249 1206872898 Total 6151608472 6221648676 31、Lease liabilities Item 31 December 2024 31 December 2023 Lease liability 25423044 16213925 Less: Lease liabilities due within one year 3772437 1079363 Total 21650607 15134562 32、Long-term payables Item 31 December 2024 31 December 2023 Long-term payables 464617473 88204163 （1）Long-term payables (disclosured by nature) Item 31 December 2024 31 December 2023 Finance lease payments payable 548620744 129143881 Less: Long-term payables due within one year 84003271 40939718 Total 464617473 88204163 33、Provisions Item 31 December 2024 31 December 2023 Causes Mine restoration and 12221373 11798141 Estimated mineother expenses rehabilitation costs Pending litigation 915847 1251941 Total 13137220 13050082 Note: According to the provisions of the "Regulations on the Protection of Mining Geological Environment" and the "Land Reclamation Regulations" and other laws the company estimates the abandonment costs in accordance with the relevant provisions of the Enterprise Accounting Standards. 34、Deferred income 173CSGAnnual Report 2024 Item 1 January 2024 Increased in Decrease in this 31 Decemberthis issue period 2024 Causes Government Grants 430143830 91724040 34615832 487252038 For details of government grants included in deferred income please refer to notes: Government Grants 35、Share capital (unit: share) Movement for the year ended 31 December 2024 (+-) Item 1 January 2024 Conversion 31 DecemberIssue new Bonus of Provident 2024 shares shares Fund into Other Subtotal Shares Total number of 3070692107 3070692107 shares 36、Capital reserve Item 1 January Increased in this Decrease in this2024 issue period 31 December 2024 Share premium 649166589 - - 649166589 Other capital surplus -58427175 - - -58427175 Total 590739414 - - 590739414 37、Other comprehensive income Other comprehensive income attributable to the parent company in the balance sheet: 2024 Less: Included in other comprehensive 1 January 31 DecemberItem Attributable to income in the2024 (1) 2024 (4) = (1)parent company previous period + (2) - (3) after tax (2) and transferred to retained earnings in the current period (3) 1. Other comprehensive income items which will not be reclassified - subsequently to profit or loss 2. Other comprehensive income items which will be reclassified subsequently 177384471 -17658202 159726269 to profit or loss 174CSGAnnual Report 2024 2024 Less: Included in other comprehensive 1 January 31 DecemberItem Attributable to income in the2024 (1) 2024 (4) = (1)parent company previous period + (2) - (3) after tax (2) and transferred to retained earnings in the current period (3) 1. Difference on translation of foreign currency financial 13682674 1300833 14983507 statements 2. Financial rewards for energy-saving technical 2550000 2550000 retrofits 3. Investment properties 161151797 -18959035 142192762 Total other comprehensive income 177384471 -17658202 159726269 Other comprehensive income attributable to the parent company in the income statement: 2024 Less: included in other comprehensive Less: Amount before income in the Attributa Attributable Item income tax for previous Less: ble to to parent the current period and Income tax minority company after period (1) transferred to expense (3) sharehold tax (5) = (1)- profit and loss ers after (2)-(3)-(4) in the current tax (4) period (2) 1. Other comprehensive income that will not be reclassified into profit or loss 2. Other comprehensive income that will be reclassified into profit 1300833 18959035 -17658202 and loss 1. Foreign currency financial statement 1300833 1300833 translation differences 2. Investment real estate 18959035 -18959035 Total 1300833 18959035 -17658202 38、Special reserves 175CSGAnnual Report 2024 Item 1 January 2024 Increased in this Decrease in thisissue period 31 December 2024 Safety production fee 1411139 6705945 3037456 5079628 39、Surplus reserve Item 1 January 2024 Increased in this Decrease in this 31 Decemberissue period 2024 Statutory surplus reserve 1276210730 81450884 1357661614 Discretionary surplus reserve 127852568 127852568 Total 1404063298 81450884 1485514182 40、Undistributed profit Item 2024 2023 Undistributed profits at the end of the previous period before adjustments 8806549788 7786968455 Adjust the total amount of undistributed profits at the beginning of the period (increase + decrease -) Adjusted opening undistributed profits 8806549788 7786968455 Add: Net profit attributable to shareholders of the parent company for the current period 266772318 1655614446 Less: Withdrawal from statutory surplus reserve 81450884 175429297 Dividends payable on common shares 767673027 460603816 Undistributed profit at the end of the period 8224198195 8806549788 41、Operating income and operating costs （1）Operating income and operating costs 20242023 Item Revenue Cost Revenue Cost Principal operation 15351552313 12811720914 17974268654 14058193289 Other operations 103834088 36919045 220595712 91672219 Total 15455386401 12848639959 18194864366 14149865508 （2）Operating income and operating costs by industry (or product type) Amount incurred in this period Amount of previous period Main product type (or industry) income cost income cost Main Business: Glass Industry 13671134232 11313169916 14610084880 11477002440 Electronic glass and display device industry 1391322432 1189561202 1526088005 1298711248 Solar energy and other industries 548058756 572472166 2090567358 1537550470 Unassigned Industry Type 4519263 2599280 176CSGAnnual Report 2024 Amount incurred in this period Amount of previous period Main product type (or industry) income cost income cost Inter-segment elimination -263482370 -263482370 -255070869 -255070869 Subtotal 15351552313 12811720914 17974268654 14058193289 Other business: Sales of raw materials and others 103834088 36919045 220595712 91672219 Subtotal 103834088 36919045 220595712 91672219 Total 15455386401 12848639959 18194864366 14149865508 （3）Operating income and operating costs by region Main operating Amount incurred in this period Amount of previous period areas income cost income cost Chinese mainland 14255356141 11855024119 16639820052 12893626425 overseas 1200030260 993615840 1555044314 1256239083 Subtotal 15455386401 12848639959 18194864366 14149865508 177CSGAnnual Report 2024 （4）Main business income and main business costs divided by commodity transfer time Amount incurred in this period item Glass Industry Electronic glass and display Solar energy and other Unassigneddevice industry industries Industry Type Inter-segment elimination income cost income cost income cost income cost income cost Main Business Among them: Confirmed at a certain point in 13671134232 11313169916 1391322432 1189561202 548058756 572472166 4519263 -263482370 -263482370 time Total 13671134232 11313169916 1391322432 1189561202 548058756 572472166 4519263 -263482370 -263482370 178CSGAnnual Report 2024 42、Taxes and surcharges Item 2024 2023 Property Tax 50594269 44961520 Urban maintenance and construction tax 21781715 36461120 Education fee surcharge 18446019 29929326 Land holding tax 24601056 22258942 Stamp Duty 9553533 13454419 Environmental protection tax 5673578 6287965 other 7321105 5024847 Total 137971275 158378139 For details on the calculation and payment standards of various taxes and surcharges please refer to notes Taxes . 43、Sales expenses Item 2024 2023 Employee's salary 217698108 209449335 Social entertainment expenses 21955401 25427207 Travel expenses 14159772 14561148 Rental Fees 9854040 11347234 Office Expenses 2897472 3916626 Shipping Fees 2548728 2661265 insurance 1588780 4418905 Vehicle usage fee 967835 8355362 other 17732726 28771724 Total 289402862 308908806 44、General and administrative expenses Item 2024 2023 Employee's salary 413885190 484123255 Depreciation and amortization 209095206 189979394 Office expenses 32571052 37210330 Union Funds 23248791 22320175 Consulting Fees 19853200 13111241 Social entertainment expenses 19390764 24623182 Canteen Fees 11110572 12373011 Travel expenses 10625851 11429040 Utility bills 8026076 8323198 179CSGAnnual Report 2024 Item 2024 2023 Vehicle usage fee 4879841 7027689 Rental Fees 1143636 2468974 other 37191654 52381648 Total 791021833 865371137 45、Research and development expenses Item 2024 2023 Research and development expenses 611497261 739301765 46、Financial expenses Item 2024 2023 Interest of borrowings 301581767 249878813 Less: Capitalization of interest 61192902 21719175 Interest expense 240388865 228159638 Less: Interest income 55326006 72612051 Exchange gains and losses -8852269 -930640 Handling fees and others 7754393 4209158 Total 183964983 158826105 47、Other income Item 2024 2023 Government subsidy amortization 34615832 50422500 Industry Support Fund 17051187 2821700 Government incentive funds 57941749 42923303 Scientific research funding subsidies 7006266 8354639 Tax benefits and rebates 96754148 70313326 Others 8478892 8762771 Total 221848074 183598239 48、Investment income Item 2024 2023 Investment income during the holding period of trading financial assets 416636 Debt restructuring proceeds 6238075 4908612 Bill discount interest -9182820 -14626324 Fixed deposit income etc. 924109 3106870 180CSGAnnual Report 2024 Item 2024 2023 Total -1604000 -6610842 49、Gains from changes in fair value (losses listed with”-”sign) Sources of gain from changes in fair value Amount incurred inthis period Amount of previous period Investment properties measured at fair value -491578 Total -491578 50、Credit impairment losses (losses listed with”-”sign) Item 2024 2023 Bad debt losses on notes receivable 852654 -1685175 Bad debt losses on accounts receivable 21524234 -18947038 Bad debt losses on other receivables 1778032 -854140 Total 24154920 -21486353 51、Asset impairment losses (losses are listed with "-" sign ) Item 2024 2023 Inventory depreciation loss -147120976 -28151374 Impairment losses on fixed assets -256805904 -251249874 Impairment losses on projects under construction -174171999 -26207751 Impairment losses on intangible assets -2983345 -41128458 Total -581082224 -346737457 52、Asset disposal gain (losses are listed with "-" sign) Item 2024 2023 Profit from disposal of fixed assets (losses are listed with “-”) 42232656 -551072 53、Non-operating income Amount included in Item 2024 2023 non-recurring gainsand losses for the current period Unable to pay 10593402 13792192 10593402 Claim income 1938925 748894 1938925 Gains from disposal of non-current assets 1489005 2284913 1489005 Insurance claim 72058 3588286 72058 other 5815607 2777122 2692808 Total 19908997 23191407 16786198 181CSGAnnual Report 2024 54、Non-operating expenses Amount included in Item 2024 2023 non-recurring gainsand losses for the current period Losses due to damage or scrapping of non-current assets 22160548 11361977 22160548 Compensation expenses 1013847 493777 1013847 Donation expenditure 462800 611914 462800 other 3310977 953227 3310977 Total 26948172 13420895 26948172 55、Income tax expense （1）Income tax expense details Item 2024 2023 Current income tax calculated in accordance with tax laws and relevant regulations 125152481 164475016 Deferred income tax expense -81846123 -78714213 Total 43306358 85760803 （2）The relationship between income tax expenses and total profits Item 2024 2023 The total profit 290906901 1632195933 Income tax expense calculated at applicable tax rate 40988629 252569882 The impact of tax rate changes on the opening deferred income tax balance 18864381 5151501 Adjustments to current income taxes in prior periods -7603935 -8752897 Non-deductible costs expenses and losses 6389034 3932515 The tax impact of utilizing unrecognized deductible losses and deductible temporary differences in previous years (filled in -8297382 -53661041 with "-") Tax implications of unrecognized deductible losses and deductible temporary differences 78269798 832711 The impact of obtaining tax incentives (fill in with "-") -85304167 -114311868 Income tax expense 43306358 85760803 56、Cash Flow Statement Item Notes （1）Cash received related to other operating activities Item 2024 2023 Government subsidy 189142655 114320554 Interest income 54681500 72612051 182CSGAnnual Report 2024 Item 2024 2023 Operating deposits and security deposits 166274841 Other 27755176 18001612 Total 271579331 371209058 （2）Cash paid related to other operating activities Item 2024 2023 Operating deposit and guarantee 154507379 Office expenses 47234629 50699287 Canteen fees 42078234 43439068 Social entertainment expenses 45392810 50854382 Insurance 13196436 19583231 Maintenance fees 35860743 38699597 Travel expenses 36278144 35150855 Rental fees 11266039 18400558 Vehicle usage fee 6562858 17075085 Consulting fee 20715630 16742015 Bank fees 4916361 4121148 Others 102546498 119041903 Total 520555761 413807129 （3）Cash received from other investing activities Item 2024 2023 Collect deposits and security deposits 15521326 Others 10000000 Total 25521326 （4）Other cash paid related to investing activities Item 2024 2023 Payment of deposit and security deposit 46621319 Total 46621319 （5）Cash paid related to significant investment activities Item 2024 2023 Engineering project construction expenditure 2338449565 4267442530 Financial investment expenses 555254000 40000000 183CSGAnnual Report 2024 Item 2024 2023 Total 2893703565 4307442530 （6）Cash received from other financing activities Item 2024 2023 Received rental payment 458231000 Minority shareholder borrowings 12000000 Total 458231000 12000000 （7）Cash paid related to financing activities Item 2024 2023 Repay finance lease payments 111060234 45896547 Financing deposits and guarantee deposits 600000 100000 Fundraising fee 986281 562168 Repayment of minority shareholders' loans 1200000 Total 113846515 46558715 184CSGAnnual Report 2024 （8）Changes in liabilities arising from financing activities Changes in cash Non-cash item Beginning balance changes Ending balance Cash Inflow Cash outflow other Short-term loans 436853583 1211533984 474714672 10651596 1163021299 Long-term loans (including long-term loans due within one year) 7428521574 2247344598 1443176451 8232689721 Total 7865375157 3458878582 1917891123 10651596 9395711020 185CSGAnnual Report 2024 57、Cash Flow Statement Supplementary Information （1）Cash Flow Statement Supplementary Information Additional materials 2024 2023 1. Adjust net profit to cash flow from operating activities: Net profit 247600543 1546435130 Add: asset impairment loss 581082224 346737457 Credit impairment loss -24154920 21486353 Fixed asset depreciation 1168318243 1130723018 Depreciation of right-of-use assets 4347065 1287801 Amortization of intangible assets 146945804 116953499 Amortization of long-term deferred expenses 9224629 4986063 Losses from disposal of fixed assets intangible assets and other long-term assets (income is listed with a “-” sign) -21561113 9628136 Loss from change in fair value (gains are listed with a “-”) 491578 Financial expenses (income is listed with "-") 240388865 228159638 Investment losses (income is listed with "-") 1604000 -8015482 Decrease in deferred income tax assets (increases are indicated with "-") -86970035 -61535282 Increase in deferred income tax liabilities (decreases are indicated with "-") 5123912 -17178931 Decrease in inventory (increases are listed with "-") -144724209 193552763 Decrease in operating receivables (increases are indicated with a “-” sign) 286095997 -1760462941 Increase in operating payables (decreases are indicated with a “-” sign) -663594879 996953703 other 6705945 10077969 Net cash flow from operating activities 1756923649 2759788894 3. Net changes in cash and cash equivalents: Closing balance of cash 3367873386 3051261655 Less: 1 January 2024 of cash 3051261655 4594018251 Add: Closing balance of cash equivalents Less: Beginning balance of cash equivalents Net increase in cash and cash equivalents 316611731 -1542756596 （2）Composition of cash and cash equivalents Item 31 December 2024 31 December 2023 1. Cash 3367873386 3051261655 Of which: cash on hand Bank deposits available for payment at any time 3367873386 3051261655 186CSGAnnual Report 2024 Item 31 December 2024 31 December 2023 Funds in other currencies readily available for payment 2. Cash equivalents Including: Bond investments due within three months 3. Closing balance of cash and cash equivalents 3367873386 3051261655 （3）Monetary funds other than cash and cash equivalents Item 31 December 2024 31 December 2023 Reasons why it is not cash and cashequivalents Other monetary funds 53654096 25512563 Restrictions on the use of margin deposits etc. 58、Foreign currency monetary items （1）Foreign currency monetary items Item Ending foreign currency Conversion Ending balancebalance exchange rate converted into RMB Monetary Funds 41723581 Of which: USD 4254022 7.1884 30579615 EUR 50750 7.5257 381929 Hong Kong Dollar 11314541 0.9260 10477265 JPY 6004286 0.0462 277398 Singapore Dollar 710 5.3214 3780 Australian Dollar 797 4.5070 3594 Accounts receivable 83252441 Of which: USD 10326170 7.1884 74228640 EUR 834785 7.5257 6282344 Hong Kong Dollar 2960537 0.9260 2741457 Accounts payable 28440659 Of which: USD 3733365 7.1884 26836924 EUR 143906 7.5257 1082993 JPY 7639524 0.0462 352946 GBP 11000 9.0765 99842 Hong Kong Dollar 73384 0.9260 67954 VI. R&D spending Item 2024 2023 Material 295364150 381619773 Artificial 241042562 278856715 Fees and Others 75090549 93747768 187CSGAnnual Report 2024 Item 2024 2023 Total 611497261 754224256 Among them: expense 611497261 739301765 Capitalization 14922491 VII. Interests in other entities 1、Interests in subsidiaries （1）The structure of a business group Shareholding Subsidiary Registered Main place Place of Nature of ratio % How to Name capital of business Registration business direct indirect get it Development Chengdu CSG 260000000 Chengdu Chengdu production Company China China and sales of 75% 25% set upvarious special glass Sichuan Energy Saving 180000000 Chengdu Chengdu Glass deep Continuing Company China China processing 75% 25% separation Tianjin Energy Saving 336000000 Tianjin Tianjin Glass deep Company China China processing 75% 25% set up Dongguan Engineering 270000000 Dongguan Dongguan Glass deepChina China processing 77.78% 22.22% set upCompany Production Dongguan and sales of Solar Energy 480000000 Dongguan DongguanChina China special glass 75% 25% set upCompany and solar glass Production and sales of Dongguan Photovoltaic 516000000 Dongguan Dongguan high-tech China China green battery 100% set upCompany products and their components Production Yichang and sales of Silicon Yichang Yichang high-purity Materials 1467980000 China China silicon 75% 25% set up Company material products Wujiang Engineering 320000000 Wujiang Wujiang Glass deep Company China China processing 75% 25% set up Hebei CSG Production Company 48066000 Yongqing Yongqing ( Note 1) China China and sales of 75% 25% set up various 188CSGAnnual Report 2024 Shareholding Subsidiary Registered Main place Place of Nature of ratio % How to Name capital of business Registration business direct indirect get it special glass Production Wujiang CSG Wujiang Wujiang and sales of Company 565041798 China China special glass 100% set upand solar glass CSG ( Hong Kong ) Co. 86440000 Hong Kong Hong Kong Investment Ltd. ( Note 2) Holding 100% set up Production Xianning Float and sales of Glass 235000000 Xianning Xianning special glass 75% 25% set up Company China China and solar glass Xianning Energy Saving 215000000 Xianning Xianning Glass deepChina China processing 75% 25% Continuing Company separation Production Qingyuan and sales of Energy Saving 1055000000 Qingyuan Qingyuan various ultra- Company China China thin 100% set up electronic glass Shenzhen CSG Financial 300000000 Shenzhen Shenzhen Financial Leasing Co. China China leasing 75% 25% set up Ltd. business etc.Production Jiangyou Sand and sales of Mining 100000000 Jiangyou Jiangyou silica sand 100% set up Company China China and its by- products Shenzhen Production Display 143000000 Shenzhen Shenzhen and sales of Company China China display 60.8% Buy components Zhaoqing Energy Saving 200000000 Zhaoqing Zhaoqing Glass deep Company China China processing 100% set up Zhaoqing Automobile 200000000 Zhaoqing Zhaoqing Glass deep Company China China processing 100% set up Anhui New Energy 1750000000 Fengyang Fengyang Production Company China China and sales of 100% set up solar glass Anhui Quartz 75000000 Fengyang Fengyang Quartzite Company China China mining and 100% set upprocessing Anhui Silicon Valley Mingdu 360000000 Fengyang Fengyang Mineral China China resource 60% set up 189CSGAnnual Report 2024 Shareholding Subsidiary Registered Main place Place of Nature of ratio % How to Name capital of business Registration business direct indirect get it Mining mining Company Xi'an Energy Saving 150000000 Xi'an China Xi'an China Glass deep 55% 45% set up Company processing Production Qinghai New and sales of Energy 1350000000 Delingha Delingha high-purity Company China China silicon 100% set up material products Guangxi New Energy 800000000 China North China North Production Materials Sea Sea and sales of 75% 25% set up Company solar glass Note (1): Hebei CSG’s registered capital is in US dollars Note (2): The registered capital of CSG (Hong Kong) Co. Ltd. is in Hong Kong dollars. 2. Changes in the scope of consolidation due to other reasons (1) On April 10 2024 the Group established Chengdu CSG New Energy Co. Ltd. As of December 31 2024 the Group had not made any capital contribution and held 100% of its shares; (2) On July 25 2024 the Group established Beihai Nanbo Photovoltaic Energy Co. Ltd. As of December 31 2024 the Group had not made any capital contribution and the Group held 100% of its shares; (3) On December 2 2024 the Group established CSG (Suzhou) New Energy Management Co. Ltd. As of December 31 2024 the Group had not made any capital contribution and held 100% of its shares; (4) Dongguan CSG Jingyu New Materials Co. Ltd. Yichang CSG New Energy Materials Technology Co. Ltd. and Shenzhen CSG Hongkai Park Operation Management Co. Ltd.were cancelled in July 2024 November 2024 and November 2024 respectively and are no longer included in the scope of consolidation.VIII. Government Grants 1、Government subsidies included in deferred income （1）Government grants included in deferred income are subsequently measured using the gross method. 190CSGAnnual Report 2024 The amount carried Presentation New forward items carried 1 January subsidy and forward and Item amount included Other 31 December included in Asset 2024 changes profit and related/incomefor this in profit 2024 period and loss loss in the related in the current current period period Group Talent Fund 171000000 171000000 Revenue related Project Other subsidy 259143830 91724040 34615832 316252038 Other benefits Asset related projects Total 430143830 91724040 34615832 487252038 2、Government subsidies included in current profits and losses using the gross method Amount included in Amount included Subsidy item type profit and loss in profit and loss Items presented Asset in the previous for the current in profit or loss related/income period relatedperiod Government Financial Grants allocation 66216291 92701879 Other benefits Revenue related 3、Government subsidies using the net method to offset related costs The amount of The amount of Items for Subsidy item type relevant costs relevant costs presentation Asset offset in the offset in the of write-down related/income previous period current period related costs related Financial Financial Financial interest subsidy allocation 3711633 2741496 expenses Revenue related IX. Financial Instruments Risk Management The Group's major 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 loans trading financial liabilities non-current liabilities due within one year long-term loans bonds payable lease liabilities and long-term payables. Details of each financial instrument have been disclosed in the relevant notes. The risks associated with these financial instruments and the risk management policies adopted by the Group to reduce these risks are described below. The Group's management manages and monitors these risk exposures to ensure that the above risks are controlled within a limited range. 1、Risk management objectives and policies 191CSGAnnual Report 2024 The main risks arising from the Group’s financial instruments are credit risk liquidity risk market risk (including exchange rate risk interest rate risk and commodity price risk).The Group's overall risk management program targets the unpredictability of financial markets and seeks to reduce potential adverse effects on the Group's financial performance.The Group has formulated risk management policies to identify and analyze the risks faced by the Group set appropriate risk acceptance levels and design corresponding internal control procedures to monitor the Group's risk level. The Group will regularly reassess these risk management policies and related internal control systems to adapt to changes in market conditions or the Group's business activities. The internal audit department also regularly and irregularly checks whether the implementation of the internal control system complies with the risk management policy.The Board of Directors is responsible for planning and establishing the Group's risk management framework formulating the Group's risk management policies and relevant guidelines and supervising the implementation of risk management measures. The Group has formulated risk management policies to identify and analyze the risks faced by the Group.These risk management policies clearly define specific risks and cover many aspects such as market risk credit risk and liquidity risk management. The Group regularly evaluates changes in the market environment and the Group's business activities to decide whether to update the risk management policies and systems. The Group's risk management is carried out by relevant departments in accordance with the policies approved by the Board of Directors.These departments identify evaluate and avoid relevant risks through close cooperation with other business departments of the Group.The Group spreads the risks of financial instruments through appropriate diversified investments and business portfolios and reduces the risks concentrated in a single industry specific region or specific counterparty by formulating corresponding risk management policies. （1）Credit Risk Credit risk refers to the risk that a counterparty fails to fulfill its contractual obligations resulting in financial losses to the Group.The Group manages credit risk by portfolio classification. Credit risk mainly arises from bank deposits bills receivable accounts receivable other receivables etc.The Group's bank deposits are mainly deposited in state-owned banks and other large and medium-sized listed banks. The Group does not expect that there will be any significant credit risk in its bank deposits.For bills receivable accounts receivable other receivables and long-term receivables the Group has established relevant policies to control credit risk exposure. The Group assesses the credit qualifications of customers based on their financial status credit records and other factors such as current market conditions and sets corresponding credit periods. The Group regularly monitors customer credit records. For customers with poor credit records the Group 192CSGAnnual Report 2024 will use written reminders shorten credit periods or cancel credit periods to ensure that the Group's overall credit risk is within a controllable range.The debtors of the Group's accounts receivable are customers in different industries and regions. The Group continuously conducts credit assessment on the financial status of accounts receivable and purchases credit guarantee insurance when appropriate.The maximum credit risk exposure of the Group is the carrying amount of each financial asset in the balance sheet. The Group does not provide any other guarantees that may expose the Group to credit risk. Among the Group's accounts receivable accounts receivable from the top five customers (mainly photovoltaic glass customers) account for 33% (2023: 39%) of the Group's total accounts receivable . These customers are all leading companies in the industry with good credit and the Group's accounts receivable recovery risk is relatively low ; among the Group's other receivables other receivables from the top five companies in terms of outstanding amount account for 90% (2023: 87%) of the Group's total other receivables. （2）Liquidity Risk Liquidity risk refers to the risk that the Group may encounter a shortage of funds when fulfilling its obligations to be settled by delivering cash or other financial assets.When managing liquidity risk the Group maintains and monitors cash and cash equivalents that the management considers sufficient to meet the Group's operating needs and reduce the impact of cash flow fluctuations. The Group's management monitors the use of bank loans and ensures compliance with loan agreements. At the same time it obtains commitments from major financial institutions to provide sufficient standby funds to meet short-term and long- term funding needs.At the end of the period the financial liabilities and off-balance sheet guarantees held by the Group were analyzed by maturity of undiscounted remaining contractual cash flows as follows (in RMB): Ending balance item Within one One to two Two to five More than year years years five years Total Financial liabilities: Short-term loans 1175046211 1175046211 Notes Payable 2244413755 2244413755 Accounts payable 3092025797 3092025797 Other accounts payable 312816531 312816531 Non-current liabilities due within one year 2210464448 2210464448 Other current liabilities 218529333 218529333 Long-term loans 190373964 2772567174 2866975537 861770244 6691686919 Lease liabilities 2947236 5549939 13153432 21650607 Long-term payables 115153592 302856111 46607770 464617473 193CSGAnnual Report 2024 Ending balance item Within one One to two Two to five More than year years years five years Total Total financial liabilities and 9443670039 2890668002 3175381587 921531446 16431251074 contingent liabilities At the end of last 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): Balance at the end of the previous year item Within one One to two Two to five More than year years years five years Total Financial liabilities: Short-term loans 442145185 442145185 Notes Payable 2041353189 2041353189 accounts payable 3341624602 3341624602 Other accounts payable 484741877 484741877 Non-current liabilities due within one year 1271501008 1271501008 Other current liabilities 454332686 454332686 Long-term loans 214670100 1941153526 3246286160 1584820574 6986930360 Lease liabilities 1128760 3705792 10300010 15134562 Long-term payables 42003985 46200178 88204163 Total financial liabilities and 8250368647 1984286271 3296192130 1595120584 15125967632 contingent liabilities The financial liability amounts disclosed in the above table are undiscounted contractual cash flows and therefore may differ from the carrying amounts in the balance sheet. （3）Market Risk The market risk of financial instruments refers to the risk that the fair value or future cash flows of financial instruments fluctuate due to changes in market prices including interest rate risk exchange rate risk and other price risks.Interest rate risk Interest rate risk refers to the risk that the fair value or future cash flows of financial instruments will fluctuate due to changes in market interest rates. Interest rate risk can arise from recognized interest-bearing financial instruments and unrecognized financial instruments (such as certain loan commitments).The Group's interest rate risk mainly arises from long-term interest-bearing debts such as long-term bank loans and bonds payable. Financial liabilities with floating rates expose the Group to cash flow interest rate risk while financial liabilities with fixed rates expose the Group to fair value interest rate risk. The Group determines the relative proportion of fixed 194CSGAnnual Report 2024 and floating rate contracts based on the market environment at the time and maintains an appropriate combination of fixed and floating rate instruments through regular review and monitoring.The Group closely monitors the impact of interest rate changes on the Group's interest rate risk. The Group currently does not adopt an interest rate hedging policy. However the management is responsible for monitoring interest rate risk and will consider hedging significant interest rate risk when necessary. Rising interest rates will increase the cost of new interest-bearing debts and the interest expenses of the Group's unpaid interest-bearing debts at floating rates and have a significant adverse impact on the Group's financial performance.The management will make timely adjustments based on the latest market conditions. These adjustments may be arrangements for interest rate swaps to reduce interest rate risks.The interest-bearing financial instruments held by the Group are as follows (in Yuan): item Ending balance Balance at the end of theprevious year Fixed rate contracts 1078169155 1123875582 Floating rate contract 5073439317 5097773094 Total 6151608472 6221648676 For financial instruments held on the balance sheet date that expose the Group to fair value interest rate risk the impact on net profit and shareholders' equity in the above sensitivity analysis is the impact of re-measurement of the above financial instruments at the new interest rate assuming that the interest rate changes on the balance sheet date. For floating rate non- derivative instruments held on the balance sheet date that expose the Group to cash flow interest rate risk the impact on net profit and shareholders' equity in the above sensitivity analysis is the impact of the above interest rate changes on the estimated interest expense or income on an annual basis. The analysis of the previous year was based on the same assumptions and methods.Exchange rate risk Exchange rate risk refers to the risk that the fair value or future cash flows of financial instruments will fluctuate due to changes in foreign exchange rates. Exchange rate risk can arise from financial instruments denominated in a foreign currency other than the base currency.Exchange rate risk mainly refers to the impact of foreign exchange rate fluctuations on the Group's financial position and cash flow. Except for the assets denominated in Hong Kong dollars held by subsidiaries established in Hong Kong the proportion of foreign currency assets and liabilities held by the Group to the total assets and liabilities is not significant.Therefore the Group believes that the exchange rate risk it faces is not significant.At the end of the period the amounts of foreign currency financial assets and foreign currency financial liabilities held by the Group converted into RMB are as follows (in RMB ) : 195CSGAnnual Report 2024 Foreign currency liabilities Foreign currency assets item Balance at the Balance at the Ending balance end of the Ending balance end of the previous year previous year Dollar 26836924 26941200 104808255 297351920 Hong Kong Dollar 67954 54917 13218722 15309673 other 1535781 1642375 6949045 7102354 Total 28440659 28638492 124976022 319763947 The Group closely monitors the impact of exchange rate changes on the Group’s exchange rate risk. The management is responsible for monitoring exchange rate risk and will consider hedging significant exchange rate risk when necessary.As of December 31 2024 for the Group’s various US dollar financial assets and US dollar financial liabilities if the RMB appreciates or depreciates by 10% against the US dollar and other factors remain unchanged the Group’s net profit will decrease or increase by approximately RMB6627563 ( December 31 2023 : decrease or increase by approximately RMB22984911 ). 2、Capital Management The objective of the Group's capital management policy is to ensure that the Group can continue as a going concern thereby providing returns to shareholders and benefiting other stakeholders while maintaining an optimal capital structure to reduce capital costs.In order to maintain or adjust the 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 55% ( end of previous year : 52%).X. Fair value According to the lowest level of input value that is significant to the measurement as a whole the fair value hierarchy can be divided into: Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.Level 2: Use of observable inputs other than quoted market prices for assets or liabilities included in Level 1 either directly (i.e. prices) or indirectly (i.e. derived from prices).Level 3: Assets or liabilities use any input that is not based on observable market data (unobservable input). （1）Items and amounts measured at fair value 196CSGAnnual Report 2024 At the end of the period the assets and liabilities measured at fair value are listed as follows according to the above three levels: Level 1 fair Level 2 fair Level 3 fair item value value value total measurement measurement measurement I. Ongoing fair value measurement (I) Trading financial assets 96000000 96000000 (II) Receivables Financing 798603111 798603111 (III) Investment properites 293712453 293712453 During the year the fair value measurements of the Group’s financial assets and financial liabilities did not undergo any transfers between Level 1 and Level 2 nor did they involve any transfers into or out of Level 3.For financial instruments traded in active markets the Group determines their fair values based on their active market quotations; for financial instruments not traded in active markets the Group determines their fair values using valuation techniques. The valuation models used are mainly the discounted cash flow model and the market comparable company model. The input values of the valuation techniques mainly include risk-free interest rates benchmark interest rates exchange rates credit spreads liquidity premiums and lack of liquidity discounts. （2）Information related to Level 2 fair value measurement Inside Allow Fair value at theend of the period Valuation Techniques Input value Investment properties: Building area of properties for different Industrial commercial residential Land price purposes and office real estate 293712453 method/comparison method market unitIncome Approach price of properties for different purposes （3）Quantitative information on significant unobservable inputs used in Level 3 fair value measurements Content Closing fair Valuation unobservable input Range (weightedvalue techniques value average) Equity instrument investment: Income Receivables 798603111 Approach Volatility Counterparty Financing (Option credit risk Own credit 0%-2% Pricing Model) risk 197CSGAnnual Report 2024 XI. Related parties and related transactions 1、The Group’s parent company The Group has no parent company .The Group has no ultimate actual controller. 2、Subsidiaries of the Group For details of subsidiaries please see notes. 3、The Group’s joint ventures and associated companies The Group has no joint ventures or associated companies. 4、Other related parties of the Group Name of related party Relationship with our company Qianhai Life Insurance Co. Ltd. The company's largest shareholder Shantou Chaoshang Town Comprehensive Management Co. Ltd. Related parties of the Company’s largest shareholder Qianhai Life (Xi'an) Hospital Co. Ltd. Related parties of the Company’s largest shareholder Qianhai Life (Guangzhou) General Hospital Co.Ltd. Related parties of the Company’s largest shareholder Shenzhen Hongtu Construction Co. Ltd. Related parties of the Company’s largest shareholder Suzhou Baoqi Logistics Co. Ltd. Related parties of the Company’s largest shareholder Shenzhen City Special Construction Engineering Co. Ltd. Related parties of the Company’s largest shareholder Shenzhen Jinsheng Supply Chain Co. Ltd. Related parties of the Company’s largest shareholder 5、Related-party transactions （1）Related purchases and sales * Purchasing goods and receiving services Related parties Related-party Amount incurred Amount of previoustransaction details in this period period Qianhai Life Insurance Co. Ltd. Accepting laborservices 7291935 7471481 Qianhai Life (Guangzhou) General Accepting labor Hospital Co. Ltd. services 401585 total 7693520 7471481 Note: The Group conducts commodity transactions with related parties based on market prices.* Selling goods and providing services 198CSGAnnual Report 2024 Related-party Related parties transaction Amount incurred in Amount of previous details this period period Qianhai Life (Xi'an) Hospital Co. Ltd. Selling goods 1786505 352878 Shantou Chaoshang Town Comprehensive Management Co. Ltd. Selling goods 599745 Shenzhen City Special Construction Engineering Co. Ltd. Selling goods 3502191 Other related parties Selling goods 109067 71645 total 1895572 4526459 Note: The Group conducts commodity transactions with related parties based on market prices. （2）Remuneration of key management personnel item Amount incurred in this period Amount of previous period Remuneration of key management personnel 14541200 18280500 6、Accounts receivable and payable from related parties （1）Amounts receivable from related parties Ending balance Balance at the end of the Project Name Related parties previous year Book balance Bad debt Book Bad debtprovision balance provision accounts Shenzhen Hongtu Construction receivable Co. Ltd. 8652356 7382793 8652356 7382793 accounts Shenzhen Jinsheng Supply receivable Chain Co. Ltd. 22090 20986 22090 20986 Prepayment Qianhai Life Insurance Co. Ltd. 602449 4441 combine count 9276895 7403779 8678887 7403779 （2）Amounts payable to related parties Project Name Related parties Ending Balance at the end ofbalance the previous year Accounts Payable Suzhou Baoqi Logistics Co. Ltd. 300000 314667 Other accounts payable Qianhai Life Insurance Co. Ltd. 46646 386589 Contract liabilities Other related parties 483657 504538 combine count 830303 1205794 XII. Commitments and contingencies 1、Important commitments 199CSGAnnual Report 2024 （1）Capital Commitment Capital commitments signed but not yet recognized in the financial statements Ending balance Balance at the end of the previous year Houses buildings and machinery and equipment 903669511 3010778541 （2）Other commitments As of December 31 2024 the Group has no other commitments to disclose. 2、Contingencies （1）Contingent liabilities arising from pending litigation and arbitration and their financial impact plaintiff defendant Cause of action Court of Targetappeal amount Case progress Zeng Nan Luo Disputes over The Company Youming Wu Guobin liability for Shenzhen (Note 1 ) Ding Jiuru Li Weinan damage to Intermediate 229200087 Under reviewYichang Hongtai Real company Court Estate Co. Ltd. interests Fengyang Wenyang Building Anhui CSG New Energy Creditor's Fengyang Decoration Materials Technology subrogation County 17349467 Under review Materials Co. Co. Ltd. disputes People's Court Ltd. (Note 2 ) Tianjin Donglai Construction Wujiang CSG East Construction Wujiang Engineering Co. China Engineering Glass project contract District 16905515 Under review Ltd. (Note 3 ) Co. Ltd. disputes People's Court Note 1: The Company requires the defendants to jointly compensate the plaintiff government for the subsidy of RMB171 million principal and RMB58.2 million interest losses granted to the Group . The first instance of the case was heard at the Shenzhen Intermediate People's Court on June 21 2022. On June 4 2024 the Company received the first instance "Civil Judgment" issued by the Shenzhen Intermediate People's Court which dismissed all the Company's claims. In June 2024 the Company appealed to the Guangdong Higher People's Court. The second instance of the case was heard at the Guangdong Higher People's Court on September 12 2024 and the case is currently in the second instance.Note 2: The plaintiff sued Anhui New Energy for subrogation for delayed payment and interest on the grounds that the concrete of Hefei Construction Materials and Equipment Co.Ltd. was used in the defendant Anhui New Energy's civil engineering project. As of the announcement date of this report the case is under trial and the Company has recognized the accounts payable for the relevant payment obligations.Note 3: There is a dispute between the Company and the 22nd Metallurgical Construction Company over construction payment. The 22nd Metallurgical Construction Company transferred its claim to Tianjin Donglai Construction Engineering Co. Ltd. and then sued the 200CSGAnnual Report 2024 Company. As of the announcement date of this report the case is still under trial and the Company has confirmed the accounts payable for the relevant payment obligations.XIII. Post-balance sheet events 1、Profit distribution after the balance sheet date A cash dividend of 0.7 yuan will be distributed for Proposed distribution of profits or dividends every 10 shares Profits or dividends declared for distribution after review and approval 214948447 Note: The above profit distribution plan has been reviewed and approved by the company's board of directors and still needs to be submitted to the company's general meeting of shareholders for approval.XIV.Notes to the main items of the parent company's financial statements 1、accounts receivable （1）Disclosure by age Aging 31 December 2024 31 December 2023 Within 1 year 110153840 240038959 Less: provision for bad debts Total 110153840 240038959 （2）Classified disclosure according to bad debt accrual method 31 December 2024 Category Carrying Amount Provision for bad debts Book value Amount Proportion(%) Amount Expected credit lossrate (%) Provision for bad debts on a portfolio 110153840 100 110153840 basis Continued: 31 December 2023 Category Carrying Amount Provision for bad debts Book value Amount Proportion(%) Amount Expected credit lossrate (%) Provision for bad debts on a portfolio 240038959 100 - - 240038959 basis 2、Other receivables 201CSGAnnual Report 2024 Item 31 December 2024 31 December 2023 Dividends receivable 126870800 Other receivables 2342796700 2030231679 Total 2342796700 2157102479 （1）Dividends receivable Item (or invested unit) 31 December 2024 31 December 2023 Dividends receivable 126870800 Total 126870800 （2）Other receivables Disclosure by age Aging 31 December 2024 31 December 2023 Within 1 year (including 1 year) 2036223049 1753727543 1 to 2 years 47261402 156829201 2 to 3 years 139540350 36000 Over 3 years 171093770 171057770 Total 2394118571 2081650514 Provision for bad debts 51321871 51418835 Total 2342796700 2030231679 Disclosure by Nature of payment 31 December 2024 31 December 2023 Item Carrying Provision Provision Amount for bad Book value Carrying Amount for bad Book valuedebts debts Amounts receivable from 2222025032 2222025032 1908899993 - 1908899993 related parties Others 172093539 51321871 120771668 172750521 51418835 121331686 Total 2394118571 51321871 2342796700 2081650514 51418835 2030231679 Bad debt provisions accrued recovered or reversed in the current period Phase 1 Phase II Phase 3 Expected credit losses Expected credit lossesBad debt provision in the next 12 total months for the entire life ( no for the entire life cycle credit impairment ) ( credit impairment hasoccurred ) Beginning balance 118835 51300000 51418835 Beginning balance in this period Provision for this period 13080 13080 202CSGAnnual Report 2024 Phase 1 Phase II Phase 3 Expected credit losses Expected credit lossesBad debt provision in the next 12 for the entire life ( no for the entire life cycle total months credit impairment ) ( credit impairment hasoccurred ) This issue's rebate 110044 110044 Ending balance 21871 51300000 51321871 The top five entities with the ending balance of other receivables collected by the debtor Other Proportion of the Bad debt Unit Name Nature of receivables Aging total ending balance provisionFunds Ending balance of other receivables Ending(%) balance A- Unit Advancepayment 579383074 Within 1 year 24 B Unit Advance Within 1payment 310258363 year 13 C Unit Advancepayment 197189709 Within 1 year 8 D Unit Advance 181835541 Within 1payment year 8 E Unit Talent FundReceivable 171000000 5+ years 7 51300000 14396666876051300000 3、Long-term equity investment Ending balance Balance at the end of the previous year item Book balance Impairmentprovision Book value Book balance Impairment provision Book value Investment in subsidiaries 10565321440 15000000 10550321440 9821533769 15000000 9806533769 Total 10565321440 15000000 10550321440 9821533769 15000000 9806533769 (1) Investment in subsidiaries 203CSGAnnual Report 2024 Provision Ending Investee Beginning balance Increase in this Reduction in for balance of period this period Ending balance impairmentloss in this impairment period provision Chengdu Glass Company 151397763 151397763 Sichuan Energy Saving Company 119256949 119256949 Tianjin Energy Saving Company 247833327 247833327 Dongguan Engineering Company 222276243 222276243 Dongguan Solar Energy Company 355120247 355120247 Dongguan Photovoltaic Company 432112183 171987671 604099854 Yichang Silicon Materials Company 909960170 909960170 Wujiang Engineering Company 254401190 254401190 Hebei CSG Corporation 266189705 266189705 CSG ( Hong Kong ) Co. Ltd. 87767304 87767304 Wujiang Glass Company 567645430 567645430 Jiangyou CSG Mining Development Co.Ltd. 102415096 102415096 Xianning Float Glass Company 181116277 181116277 Xianning Energy Saving Company 165452035 165452035 Qingyuan Energy Saving Company 885273105 885273105 Shenzhen CSG Financial Leasing Co.Ltd. 133500000 133500000 Shenzhen Display Devices Company 550765474 550765474 Zhaoqing Energy Saving Company 200000000 200000000 Zhaoqing CSG Automotive Glass Co.Ltd. 159959074 159959074 204CSGAnnual Report 2024 Provision Ending Investee Beginning balance Increase in this Reduction in for period this period Ending balance impairment balance of loss in this impairment period provision Anhui New Energy Company 1550000000 200000000 1750000000 Anhui Quartz Company 75000000 75000000 Anhui CSG Silicon Valley Mingdu Mining Development Co. Ltd. 216000000 216000000 Xi'an Energy Saving Company 82500000 82500000 Guangxi New Energy Materials Company 227000000 373000000 600000000 CSG (Suzhou) Headquarters Management Co. Ltd. 30000000 30000000 Shenzhen CSG Quartz Material Industry Co. Ltd. 40000000 40000000 Shenzhen CSG New Energy Industry Development Co. Ltd. 1350000000 1350000000 other 243592197 1200000 242392197 15000000 total 9806533769 744987671 1200000 10550321440 15000000 205CSGAnnual Report 2024 4、Operating income and operating costs Amount incurred in this period Amount of previous period item income cost income cost Main Business 4519263 2599280 Other Business 334155915 396903690 Total 338675178 399502970 5、Investment income item Amount incurred in Amount of previousthis period period Long-term equity investment income calculated using the cost method 777322478 1680533152 Investment income from disposal of long-term equity investments -1104772 Investment income during the holding period of trading financial assets 416636 other 924109 3106870 Total 777558451 1683640022 206CSGAnnual Report 2024 XV.Other important matters 1、Segment Reporting Based on the Group's internal organizational structure management requirements and internal reporting system the Group's operating business is divided into four reporting segments. These reporting segments are determined based on the financial information required by the company for daily internal management. The Group's management regularly evaluates the operating results of these reportable segments to determine the allocation of resources to them and evaluate their performance.The Group's reportable segments include: -The Glass Division is responsible for the production and sales of float glass photovoltaic glass products engineering glass products and silica sand required for the production of related glass.-The Electronic Glass and Display device Division is responsible for the production and sales of display components and special ultra-thin glass products.-The Solar Energy and Others segment is responsible for the production and sales of polysilicon and solar cell module products photovoltaic energy development and other products.-Other unallocated divisions.Segment reporting information is disclosed based on the accounting policies and measurement standards adopted by each segment when reporting to management. These accounting policies and measurement basis are consistent with those used when preparing financial statements. （1）Segment profit or loss assets and liabilities This period or end of Glass Industry Electronic glass and Solar energy and other Unallocated Inter-segmentthis period display devices industries Amount elimination total External transaction income 13629444628 1297290057 523925385 4726331 15455386401 207CSGAnnual Report 2024 This period or end of Glass Industry Electronic glass and Solar energy and other Unallocated Inter-segmentthis period display devices industries Amount elimination total Inter-segment transaction income 126121995 110678454 68273855 334539044 -639613348 Interest expenses 159152584 8398544 5657746 67179991 240388865 Depreciation and amortization expense 952074707 218800660 152461363 5499011 1328835741 Total Profit 920327070 -36182361 -624073413 30835605 290906901 Total assets 19278068581 3042484510 6562355629 2337509203 31220417923 Total liabilities 10825994138 547422220 2808227845 3036129748 17217773951 Increase in non- current assets 1621558997 55766295 1321863556 911572 3000100420 Last period or the end of the previous period Glass Industry Electronic glass and Solar energy and other Unallocated Inter-segment display devices industries Amount elimination total External transaction income 14571967724 1439212230 2180787397 2897015 18194864366 Inter-segment transaction income 113589560 133430006 67534255 397276839 -711830660 - Interest expenses 124392065 6449011 2251713 95066849 228159638 Depreciation and amortization 858676426 241304733 131434481 22534741 1253950381 Total Profit 1536505236 -259703377 292873265 62520809 1632195933 Total assets 17879556268 3271543296 6244315346 2966642402 30362057312 Total liabilities 9739294245 694438760 2275626502 3115991636 15825351143 Increase in non-current assets 3356547127 93647705 2854803508 8622636 6313620976 208CSGAnnual Report 2024 XVI. Additional materials 1、Detailed statement of non-recurring profits and losses for the current period Item Amount incurredthis period Illustrate Gains and losses on disposal of non-current assets including the write-off portion of asset impairment provisions 21561113 Government subsidies included in the current profit and loss except for government subsidies that are closely related to the company's normal business operations comply with national policies and 128276384 regulations are enjoyed in accordance with determined standards and have a lasting impact on the company's profits and losses.In addition to the effective hedging business related to the company's normal operating business non-financial enterprises' gains and losses from changes in fair value arising from holding 1340745 financial assets and financial liabilities and gains and losses arising from the disposal of financial assets and financial liabilities Reversal of impairment provision for accounts receivable that has been individually tested for impairment 10280088 Debt restructuring gains and losses 3595184 Gains and losses from changes in the fair value of investment properites that are subsequently measured by fair value -491578 Other non-operating income and expenses other than the above 10509569 Total non-recurring gains and losses 175071505 Less: Income tax impact on non-recurring gains and losses 26424188 Net non-recurring gains and losses 148647317 Less: Net impact of non-recurring gains and losses attributable to minority shareholders (after tax) 2668125 Non-recurring gains and losses attributable to the company’s ordinary shareholders 145979192 2、ROE and EPS Profit during the reporting period Weighted average Earnings per share return on equity % Basic earnings per Diluted earnings share per share Net profit attributable to the company's common shareholders 1.93 0.09 0.09 Net profit attributable to the company's common shareholders after deducting non- 0.88 0.04 0.04 recurring gains and losses Board of Directors of CSG Holding Co. Ltd. 28 April 2025 209