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% -
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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
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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
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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);
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(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
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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.
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(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
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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.
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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.
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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
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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
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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'
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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.
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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
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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.
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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;
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* 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
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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
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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
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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.
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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.
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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.
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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
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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
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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
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（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
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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:
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* 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:
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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.
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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.
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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.
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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
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（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.
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（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
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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.
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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
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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
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