南玻Ｂ:2021年第三季度报告（英文版）

CSG HOLDING CO. LTD.THE THIRD QUARTER REPORT 2021

Chairman of the Board:

CHEN LIN

October 2021CSG HOLDING CO. LTD. The Third Quarter Report 2021

Stock code: 000012; 200012 Short form of the stock: CSG A; CSG B Notice No.: 2021-047

Bond code: 149079 Short form of the bond：20 CSG 01

THE THIRD QUARTER REPORT 2021

The Company and all members of the Board of Directors guarantee that the information disclosed is true accurate

and complete and there are no any fictitious statements misleading statements or important omissions carried in

this report.Important Content Notice

1. Board of Directors and the Supervisory Committee of CSG Holding Co. Ltd. (hereinafter referred to as the

Company) and its directors supervisors and senior executives hereby confirm that there are no any fictitious

statements misleading statements or important omissions carried in this report and shall take all responsibilities

individual and/or joint for the facticity accuracy and completeness of the whole contents.

2. Principal of the Company responsible person in charge of accounting and principal of the financial department

(accounting officer) confirm that the Financial Report enclosed in the Third Quarter Report of 2021 of the

Company is true accurate and complete.

3. Whether the third quarter report has been audited or not

□Yes √No

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.I. Main financial data

(I) Main accounting data and financial indices

Whether retrospective adjustment has been carried out on financial reports of previous periods or not

□Yes √No

Increase/decrease

in comparison From 1 January to

in comparison

The report period with the same 30 September

with the same

period of the 2021

period of 2020

previous year

Operating income (RMB) 3632036581 19.32% 10246839119 37.20%

Net profit attributable to shareholders of the

157313336-53.09%1509830801107.73%

listed company (RMB)

Net profit attributable to shareholders of the

listed company after deducting 135934112 -56.68% 1465748640 117.99%

non-recurring gains and losses (RMB)

1CSG HOLDING CO. LTD. The Third Quarter Report 2021

Net cash flow arising from operating

————263549055357.52%

activities (RMB)

Basic earnings per share (RMB/Share) 0.05 -54.55% 0.49 104.17%

Diluted earnings per share (RMB/Share) 0.05 -54.55% 0.49 104.17%

Weighted average ROE 1.39% -1.99% 13.96% 6.57%

The end of the The end of the Increase/decrease in comparison with

report period previous year the end of the previous year

Total assets (RMB ) 19427394585 17882914898 8.64%

Net assets attributable to shareholders of

114147589131021298984711.77%

the Company (RMB )

(II) Items and amounts of non-recurring profit and loss

√Applicable □Not applicable

Unit: RMB

Amount from the

beginning of year

Item The report period Note

to the end of the

report period

Gains/losses from the disposal of non-current asset (including the

-1909809-1772171

write-off that accrued for impairment of assets)

Governmental subsidy reckoned into current gains/losses (not

including the subsidy enjoyed in quota or ration according to national 22378464 57162536

standards which are closely relevant to enterprise’s business)

In addition to the effective hedging business related to the normal

business of the company the profit and loss from changes in fair value

arising from the holding of trading financial assets trading financial

51554578827787

liabilities and the investment income from the disposal of trading

financial assets trading financial liabilit ies and available for sale

financial assets

Other non-operating income and expenditure except for the

-803413-9713600

aforementioned items

Less: Impact on income tax 2975335 8360220

Impact on minority shareholders’ equity (post-tax) 466140 2062171

Total 21379224 44082161 --

Details of other profit and loss items that meet the definition of non-recurring profit and loss:

□Applicable √Not applicable

The Company had no other specific circumstances of profit and loss items that meet the definition of non-recurring profit and loss.Explanation on those non-recurring profit (gains)/loss listed in the “Q&A Announcement No.1 on Information Disclosure forCompanies Offering Their Securities to the Public --- Non-recurring Profit and Loss” defined as recurring profit and loss

2CSG HOLDING CO. LTD. The Third Quarter Report 2021

□Applicable √Not applicableIt did not exist that items defined as recurring profit and loss according to the lists of non-recurring profit and loss in the “Q&AAnnouncement No.1 on Information Disclosure for Companies Offering Their Securities to the Public --- Non-recurring Profit andLoss” in the report period.(III) Particulars and explanations about significant changes in main accounting data and financial indices

√Applicable □Not applicable

Unit: RMB'0000

Increased/Decreased

Item of balance sheet Note 30 September 2021 31 December 2020 Rate

amount

Notes receivable (1) 11736 20797 -9061 -44%

Accounts receivable (2) 107800 68147 39653 58%

Trading financial assets (3) 100000 - 100000 -

Advance payments (4) 16029 8593 7436 87%

Inventory (5) 116511 81516 34995 43%

Right-of-use assets (6) 906 - 906 -

Development expenditure (7) 8504 4915 3589 73%

Long-term deferred expenses (8) 292 1038 -746 -72%

Deferred income tax assets (9) 26810 19498 7312 38%

Other non-current assets (10) 62781 19336 43445 225%

Short-term borrowings (11) 23029 35290 -12261 -35%

Notes payable (12) 23594 14485 9109 63%

Long-term payables (13) 20246 - 20246 -

From January to From January to Increased/Decreased

Item of income statement Note Rate

September 2021 September 2020 amount

Operating income (14) 1024684 746828 277856 37%

R&D expenses (15) 37069 26542 10527 40%

Financial expenses (16) 11927 18432 -6505 -35%

Credit impairment losses (17) 772 551 221 40%

Asset impairment losses (18) 69845 10201 59644 585%

Investment income (19) 883 - 883 -

Asset disposal income (20) -177 -119 -58 49%

Non-operating income (21) 1079 635 444 70%

Income tax expenses (22) 33703 19438 14265 73%

Net amount of other

(23)142-200342-

comprehensive income after tax

Note:

(1) The decrease in notes receivable was mainly due to the decrease in notes of some companies.

(2) The increase in accounts receivable was mainly due to the increase in revenue of architectural glass companies.

(3) The increase in trading financial assets was mainly due to the purchase of structured deposits.

3CSG HOLDING CO. LTD. The Third Quarter Report 2021

(4) The increase in advance payments was mainly due to the increase in advance payment for materials of some companies.

(5) The increase in inventory was mainly due to the increase in raw material stocking and finished product inventory.

(6) The increase in right-of-use assets was mainly due to adjustments in accordance with the new lease standards.

(7) The increase in development expenditure was mainly due to the increase in R&D investment.

(8) The decrease in long-term deferred expenses was mainly due to the adjustment in accordance with the new lease standard.

(9) The increase in deferred income tax assets was mainly due to the provision of asset impairment losses.

(10) The increase in other non-current assets was mainly due to prepayments for construction equipment of some companies'

construction projects.

(11) The decrease in short-term borrowings was mainly due to the repayment of part of the borrowings.

(12) The increase in notes payable was mainly due to the increase in newly issued notes in the current period.

(13) The increase in long-term payables was mainly due to the financial leasing business carried out by some companies.

(14) The increase in operating income was mainly due to the increase in glass prices and the increase in electronic glass production

capacity.

(15) The increase in R&D expenses was mainly due to the increase in R&D investment.

(16) The decrease in financial expenses was mainly due to the decrease in interest expenses.

(17) The increase in credit impairment losses was mainly due to the increase in accounts receivable of some companies.

(18) The increase in asset impairment losses was mainly due to the provision of asset impairment losses.

(19) The increase in investment income was mainly due to the increase in income from the purchase of structured deposits.

(20) Changes in asset disposal income were mainly due to the disposal of non-current assets.

(21) The increase in non-operating income was mainly due to claim income and unpaid payments.

(22) The increase in income tax expenses was mainly due to the increase in total profits.

(23) The increase in net amount of other comprehensive income after tax was mainly due to changes in the translation differences in

foreign currency statements.II. Shareholder information

(I) Particulars about the total number of common shareholders and preference shareholders with voting

rights recovered as well as the shareholdings of the top ten shareholders

Unit: Share

Total number of common shareholders Total number of preference shareholders with voting

1712730

at the end of the report period rights recovered at end of report period (if applicable)

Particulars about the shareholdings of the top ten shareholders

Amount Number of share pledged

Proportion of marked or frozen

Nature of Amount of

Name of shareholder of shares restricted

shareholder shares held Share

held (%) shares Amount

status

held

Domestic non

Foresea Life Insurance Co. Ltd.state-owned 15.19% 466386874

– HailiNiannian

legal person

4CSG HOLDING CO. LTD. The Third Quarter Report 2021

Domestic non

Foresea Life Insurance Co. Ltd.state-owned 3.86% 118425007

– Universal Insurance Products

legal person

Domestic non Frozen

Zhongshan Runtian Investment

Note

state-owned 2.82% 86633447 and 86633447

Co. Ltd.legal person marked

Hong Kong Securities Clearing Foreign legal

2.20%67481241

Company Limited person

Domestic non

Foresea Life Insurance Co. Ltd.state-owned 2.11% 64765161

– Own Fund

legal person

China Merchants Securities (HK) State-owned

1.35%41604598

Co. Limited legal person

China Galaxy International

Foreign legal

Securities (Hong Kong) Co. 1.34% 41219778

person

Limited

Bank of China Limited - China

Merchants Ruiwen Hybrid Other 0.96% 29561168

Securities Investment fund

MORGAN STANLEY & CO. Foreign legal

0.85%26002636

INTERNATIONAL PLC person

VANGUARD EMERGING

Foreign legal

MARKETS STOCK INDEX 0.69% 21266997

person

FUND

Particulars about top ten shareholders with unrestricted shares held

Amount of Type of shares

Name of shareholder unrestricted

Type Amount

shares held

Foresea Life Insurance Co. Ltd. – HailiNiannian 466386874 RMB ordinary shares 466386874

Foresea Life Insurance Co. Ltd. – Universal Insurance

118425007 RMB ordinary shares 118425007

Products

Zhongshan Runtian Investment Co. Ltd. 86633447 RMB ordinary shares 86633447

Hong Kong Securities Clearing Company Limited 67481241 RMB ordinary shares 67481241

Foresea Life Insurance Co. Ltd. – Own Fund 64765161 RMB ordinary shares 64765161

Domestically listed

China Merchants Securities (HK) Co. Limited 41604598 41604598

foreign shares

China Galaxy International Securities (Hong Kong) Co. Domestically listed

4121977841219778

Limited foreign shares

Bank of China Limited - China Merchants Ruiwen Hybrid 29561168 RMB ordinary shares 29561168

5CSG HOLDING CO. LTD. The Third Quarter Report 2021

Securities Investment fund

Domestically listed

MORGAN STANLEY & CO. INTERNATIONAL PLC 26002636 26002636

foreign shares

VANGUARD EMERGING MARKETS STOCK INDEX Domestically listed

2126699721266997

FUND foreign shares

Among shareholders as listed above Foresea Life Insurance Co.Ltd.-HailiNiannian Foresea Life Insurance Co. Ltd.-Universal

Insurance Products Foresea Life Insurance Co. Ltd.-Own Fund

are all held by Foresea Life Insurance Co. Ltd.. Zhongshan

Runtian Investment Co. Ltd. is a related legal person of Foresea

Life Insurance Co. Ltd. and Chengtai Group Co. Ltd. another

Statement on associated relationship or consistent action related legal person of Foresea Life Insurance Co. Ltd which

among the above shareholders: held 40187904 shares via China Galaxy International Securities

(Hong Kong) Co. Limited.Except for the above-mentioned shareholders it is unknown

whether other shareholders belong to related party or have

associated relationship regulated by the Management Regulation

of Information Disclosure on Change of Shareholding for Listed

Companies.Description of the top 10 shareholders part icipating in

N/A

margin trading (if applicable)

Note: On September 22 2021 3447 shares of the Company held by Zhongshan Runtian Investment Co. Ltd. were judicially frozen

and 86630000 shares of the Company held by it were judicially marked.(II) Total number of preference shareholders and particulars about the shareholdings of the top ten

preference shareholders

□Applicable √Not applicable

III. Other important matters

√Applicable □ Not applicable

1. Ultra-short-term financing bills

On June 15 2020 the Company the third extraordinary general meeting of shareholders 2020 deliberated and approved the proposal

on application for registration and issuance of ultra-short-term financing bills and medium-term notes which agreed that the

Company should register and issue ultra-short-term financing bills with a registered amount not exceeding 1.5 billion yuan (the limit

is not subject to the limit of 40% of net assets).With the period of validity of the quota not longer than two years such

ultra-short-term financing bills will be issued by installments in accordance with the actual capital needs of the Company and the

situation of inter-bank market funds. On September 4 2020 the NAFMII held its 102nd registration meeting in 2020 and decided to

accept the registration of ultra-short-term financing bills with a total of 1.5 billion yuan and a validity period of two years.

2. Medium-term notes

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

6CSG HOLDING CO. LTD. The Third Quarter Report 2021

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

of validity of the registration according to the Company’s actual demands for funds and the status of inter-bank funds. On 2 March

2018 National Association of Financial Market Institutional Investors (NAFMII) held the 14th registration meeting of 2018 in

which NAFMII decided to accept the registration of the Company’s medium-term notes amounting to RMB 0.8 billion and valid for

two years. Shanghai Pudong Development Bank Co. Ltd. and China CITIC Bank Corporation Limited were joint lead underwriters

of these medium-term notes which could be issued by stages within period of validity of the registration. On May 4 2018 the

company issued the first medium-term notes with a total amount of 800 million yuan and a term of three years. The issue rate was

7% and the redemption date was May 4 2021.

On June 15 2020 the Third Extraordinary Shareholders’ General Meeting 2020 of CSG deliberated and approved the proposal on

application for registration and issuance of ultra-short-term financing bills and medium-term notes which agreed that the Company

should register and issue medium-term notes with a registered amount not exceeding 1.5 billion yuan. With the period of validity of

the quota not longer than two years such ultra-short-term financing bills will be issued by installments in accordance with the actual

capital needs of the Company and the situation of inter-bank market funds. On September 4 2020 the NAFMII held the 102nd

registration meeting in 2020 and decided to accept the company's registration of medium-term notes with a total of 1.5 billion yuan

and a validity period of two years.

3. Public issuance of corporate bondsOn March 2 2017 the 2nd Extraordinary General Meeting of Shareholders in 2017 reviewed and approved “the Proposal on thePublic Issuance of Corporate Bonds for Qualified Investors”. On February 27 2019 the First Extraordinary General Meeting ofShareholders in 2019 The “Proposal on Extending the Validity Period of the Shareholders' Meeting for the Public Offering ofCorporate Bonds to Qualified Investors” agreed to issue corporate bonds with a total issue of no more than RMB 2 billion and a termof no more than 10 years. On June 26 2019 the Company received the “Approval of Approving CSG Holding Co. Ltd. to IssueCorporate Bonds to Qualified Investors” issued by China Securities Regulatory Commission (ZJXK [2019] No. 1140). On March 24

2020 and March 25 2020 the Company issued the first batch of corporate bonds with total amount of RMB 2 billion and valid term

of 3 years at the issuance rate of 6% which will be redeemed on March 25 2023.On March 12 2020 the First Extraordinary General Meeting of Shareholders in 2020 reviewed and approved “the Proposal on thePublic Issuance of Corporate Bonds for Qualified Investors” agreed to issue corporate bonds with a total issue of no more than RMB

1.8 billion and a term of no more than 10 years. On April 22 2020 the Company received the “Approval of Approving CSG HoldingCo. Ltd. to Issue Corporate Bonds to Qualified Investors” issued by China Securities Regulatory Commission (ZJXK[2020] No.

784).

4. Non-public issuance of A shares

The interim meeting of the 8th board of directors of the Company held on March 5 2020 deliberated and approved the related

proposals of non-public issuance of A shares and agreed the Company to issue A shares privately. The proposals were de liberated

and approved by the 2nd Extraordinary General Meeting of Shareholders of 2020 which held on April 16 2020. In May 2020 the

Company received the first feedback notice on the examination of administrative licensing projects of China Securities Re gulatoryCommission (No. 200819) issued by the China Securities Regulatory Commission and published “Announcement on Reply to theFeedback of Application Documents For Non-public Offering of A shares” and “Announcement on the Revised Reply to theFeedback of Application Documents For Non-public Offering of A shares” on June 8 2020 and June 29 2020 respectively. On June

5 2020 the Company held an interim meeting of the 9th board of directors deliberated and approved the relevant proposals on

adjusting the Company's non-public issuance of A shares. On July 6 2020 the Issuance Audit Committee of China Securities

Regulatory Commission reviewed the Company's application for non-public issuance of A shares. According to the audit results theCompany's application for non-public issuance of A shares was approved. On July 22 2020 the Company received the “Reply on theApproval of Non-public Issuance of Shares of CSG” (ZJXK [2020] No. 1491) issued by China Securities Regulatory Commission.After obtaining the approval the Company actively worked with intermediaries to promote various work concerning the non-public

7CSG HOLDING CO. LTD. The Third Quarter Report 2021

issuance of A shares. However in view of changes in many factors such as the capital market environment in dustrial development

the Company’s market value performance and the timing of equity financing the Company did not implement this non-public

issuance of A shares within the validity period of the approval document. The approval for the non-public issuance of A sharesexpired automatically. For details please refer to the “Announcement on the Expiration of the Approval for the Non-public Issuanceof A Shares” (Announcement No.: 2021-034) disclosed by the Company on July 15 2021.For details please refer to Juchao website (www.cninfo.com.cn).IV. Quarterly financial statement

(I) Financial Statements

1. Consolidated Balance Sheet

Prepared by CSG Holding Co. Ltd.Unit: RMB

Item 30 September 2021 31 December 2020

Current asset:

Monetary capital 1871402444 2125788903

Notes receivable 117363021 207966892

Accounts receivable 1078003576 681467133

Receivables financing 344259699 382527782

Trading financial assets 1000000000

Prepayments 160293540 85928641

Other receivables 232093751 200969854

Including: interest receivable 548689

Accounts receivable 1165109257 815156318

Other current assets 120908913 140031544

Total current assets 6089434201 4639837067

Non-current assets:

Investment real estate 383084500 383084500

Fixed assets 8439734838 9145644569

Construction in progress 2123573540 1893380611

Right-of-use assets 9062969

Intangible assets 1165254268 1139718255

Development expenditure 85037981 49153407

Goodwill 233375693 233375693

Long-term prepaid expenses 2923547 10381937

8CSG HOLDING CO. LTD. The Third Quarter Report 2021

Deferred tax assets 268099276 194979414

Other non-current assets 627813772 193359445

Total non-current assets 13337960384 13243077831

Total assets 19427394585 17882914898

Current liabilities:

Short-term loan 230285400 352895571

Notes payable 235943376 144851192

Accounts payable 1359921873 1237833051

Contractual liabilities 316240169 296776624

Payroll payable 319285365 342352166

Taxes payable 233426746 194921071

Other payables 268422045 287332992

Including: interest payable 65413335 132133902

Non-current liabilities due within one year 815934639 927531709

Other current liabilities 36668284 34586292

Total current liabilities 3816127897 3819080668

Non-current liabilities:

Long term borrowing 884662776 853253983

Bonds payable 1995930764 1994020348

Long-term payables 202460278

Deferred income 576362198 498056081

Deferred income tax liabilities 104696207 102619932

Total non-current liabilities 3764112223 3447950344

Total Liabilities 7580240120 7267031012

Owners' equity:

Share capital 3070692107 3070692107

Capital reserve 596997085 596997085

Other comprehensive income 163231872 161816819

Special reserves 7861425 10269002

Surplus reserve 1036948422 1036948422

Undistributed profit 6539028002 5336266412

Total owner's equity attributable to the parent company 11414758913 10212989847

Minority shareholders' equity 432395552 402894039

Total owner's equity 11847154465 10615883886

9CSG HOLDING CO. LTD. The Third Quarter Report 2021

Total Liabilities and Owner's Equity 19427394585 17882914898

Legal Representative:Chen Lin Principal in charge of accounting:Wang Jian Principal of the financial department:Wang Wenxin

2. Consolidated income statement from the beginning of the year to the end of the report period

Unit: RMB

Item Balance of this period Balance of last period

I. Total operating income 10246839119 7468278057

Including: operating income 10246839119 7468278057

II. Total operating costs 7722584968 6476096799

Including: Operating costs 6400847816 5201703098

Taxes and surcharges 111599883 86665765

sales expense 190489551 264434345

Management costs 529685405 473556859

R&D expenses 370688508 265421722

Financial expenses 119273805 184315010

Including: interest expense 143830594 217928435

Interest income 29711739 36919131

Plus: other income 58931951 72359096

Investment income (“-” for loss) 8827787

Credit impairment loss (“-” for loss) -7717483 -5508104

Asset impairment loss (“-” for loss) -698445226 -102013755

Asset disposal income (“-” for loss) -1772171 -1188304

III. Operating profit (“-” for loss) 1884079009 955830191

Plus: non-operating income 10787406 6346088

Less: non-operating expenses 20501006 18755012

IV. Gross profit (“-” for loss) 1874365409 943421267

Less: Income tax expenses 337033095 194384275

V. Net profit (“-” for net loss) 1537332314 749036992

(I) Classification by business continuity

1. Net profit from continuing operations (“-” for net loss) 1537332314 749036992

2. Net profit from discontinued operations (“-” for net loss)

(II) )Classification by ownership

1. Net profit attributable to the owners of parent

1509830801726820239

company

10CSG HOLDING CO. LTD. The Third Quarter Report 2021

2. Minor shareholders’ equity 27501513 22216753

VI. Net amount of other gains after tax 1415053 -2003696

Net amount of other gains after tax attributable to owners

1415053-2003696

of parent company

(I)Other comprehensive income that will be reclassified

1415053-2003696

into profit or loss

1. Foreign currency financial statement translation

1415053-2003696

difference

VII. Total of misc. incomes 1538747367 747033296

Total of misc. incomes attributable to the owners of

1511245854724816543

the parent company

Total misc gains attributable to the minor shareholders 27501513 22216753

VIII. Earnings per share:

(I) Basic earnings per share 0.49 0.24

(II) Diluted earnings per share 0.49 0.24

Legal Representative:Chen Lin Principal in charge of accounting:Wang Jian Principal of the financial department:Wang Wenxin

3. Consolidated cash flow statement from the beginning of the year to the end of the report period

Unit: RMB

Item Balance of this period Balance of last period

I. Net cash flow from business operation

Cash received from sales of products and providing of

111352511687925278113

services

Tax returned 44144512 39215039

Other cash received from business operation 221571516 127134715

Sub-total of cash inflow from business activities 11400967196 8091627867

Cash paid for purchasing of merchandise and services 6134735322 4434760362

Cash paid to staffs or paid for staffs 1268412819 1032873072

Taxes paid 971119640 507631010

Other cash paid for business activities 391208862 443241064

Sub-total of cash outflow from business activities 8765476643 6418505508

Net cash flow generated by business operation 2635490553 1673122359

II. Cash flow generated by investing

Cash received from investment recovery 2524000000

Cash received from investment income 8279098

11CSG HOLDING CO. LTD. The Third Quarter Report 2021

Net cash retrieved from disposal of fixed assets intangible

28542051079253

assets and other long-term assets

Other investment-related cash received 51141888 378880449

Sub-total of cash inflow due to investment activities 2586275191 379959702

Cash paid for construction of fixed assets intangible assets

1273366856759625919

and other long-term assets

Cash paid for investment 3624000000

Other cash paid for investment activities 57353540 61491512

Sub-total of cash outflow due to investment activities 4954720396 821117431

Net cash flow generated by investment -2368445205 -441157729

III. Cash flow generated by financing

Absorb cash received from investment 2000000

Including: cash received by the subsidiary from absorbing

2000000

minority shareholders' investment

Cash received as loans 1002602692 2135739841

Cash received from bond issuance 1991680000

Other financing-related cash received 206137185 3819801

Subtotal of cash inflow from financing activities 1210739877 4131239642

Cash to repay debts 1204775831 4483618135

Cash paid as dividend profit or interests 524060118 419266696

Other cash paid for financing activities 2262281 503297544

Subtotal of cash outflow due to financing activities 1731098230 5406182375

Net cash flow generated by financing -520358353 -1274942733

IV. Influence of exchange rate alternation on cash and cash

-1073454-1289658

equivalents

V. Net increase of cash and cash equivalents -254386459 -44267761

Plus: Balance of cash and cash equivalents at the beginning

21240281961831835030

of term

VI. Balance of cash and cash equivalents at the end of term 1869641737 1787567269

(II) Note to the Adjustment of Financial Statements

1. Adjustment of financial statements at the beginning of the year according to the implementation of the

new lease standard for the first time from 2021

√Applicable □Not applicable

12CSG HOLDING CO. LTD. The Third Quarter Report 2021

Whether it is necessary to adjust the balance sheet accounts at the beginning of the year

√Yes □No

According to the "Accounting Standards for Business Enterprises No. 21-Leases" (hereinafter referred to as the New Lease Standards)

issued by the Ministry of Finance of the People's Republic of China in December 2018 companies that are listed at the same time

both domestically and overseas as well as those listed overseas and adopt financial reporting standards or companies that implement

the Accounting Standards for Business Enterprises shall take effect on January 1 2019; other companies that implement the

Accounting Standards for Business Enterprises shall take effect on January 1 2021.The main impacts of the implementation of the new lease standard on the company's financial statements on January 1 2021 are as

follows:

Unit: RMB

Item December 31 2020 January 1 2021 Adjust data

Long-term prepaid

10381937741179-9640758

expenses

Right-of-use asset 9640758 9640758

Total 10381937 10381937

2. Explanation of the retrospective adjustment of the previous comparative data of the new lease standard

for the first time from 2021

□ Applicable √Not applicable

(III) Report of the Auditors