CSG HOLDING CO. LTD.
ANNUAL REPORT 2020
Chairman of the Board:
CHEN LIN
April 2021
Section I Important Notice Content and Paraphrase
Board of Directors and the Supervisory Committee of CSG Holding Co. Ltd. (hereinafter referred
to as the Company) and its directors supervisors and senior executives hereby confirm that there
are no any fictitious statements misleading statements or important omissions carried in this report
and shall take individual and joint legal responsibilities for the facticity accuracy and completeness
of the whole contents.Ms. Chen Lin Chairman of the Board Mr. Wang Jian 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 2020 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 IV. Business Discussion and Analysis.The Company shall comply with the disclosure requirements of "Shenzhen Stock Exchange
Industry Information Disclosure Guidelines No. 13 - Listed Companies Engaged in Non-Metal
Building Materials Related Business".
The deliberated and approved plan of profit distribution in the Board Meeting is distributing cash
dividend of RMB 1 yuan (tax included) for every 10 shares to all shareholders based on
3070692107 shares of the total current share capital. 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.
Content
Section I Important Notice Content and Paraphrase..................................................................................... - 1 -
Section II Company Profile& Financial Highlights ...................................................................................... - 4 -
Section III Overview of the Company’s Business ........................................................................................ - 8 -
Section IV. Business Discussion and Analysis ........................................................................................... - 13 -
Section V. Important Events ........................................................................................................................ - 42 -
Section VI. Changes in Shares and Particulars about Shareholders ............................................................ - 61 -
Section VII. Particulars about Directors Supervisors Senior Executives and Employees ......................... - 68 -
Section VIII. Corporate Governance ........................................................................................................... - 77 -
Section IX. Corporate Bonds ....................................................................................................................... - 87 -
Section X. Financial Report......................................................................................................................... - 91 -
Section XI. Documents Available for Reference ...................................................................................... - 202 -
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.
Flat glass Refers to Including float glass photovoltaic glass
Ultra-thin electronic glass Refers to The electronic glass with thickness between 0.1~1.1mm
Second-generation energy-saving glass Refers to Double silver coated glass
Third-generation energy-saving glass Refers to Triple silver coated glass
AG glass Refers to Anti-glare glass
AF glass Refers to Anti-fingerprint glass
Section II Company Profile& Financial Highlights
I. Company information
Code for A-share 000012 Code for B-share 200012
Short form for A-share Southern Glass A
Short form for B-
share
Southern Glass B
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 6
th
Industrial Road Shekou Shenzhen P. R.C.Post Code 518067
Office Add. CSG Building No.1 the 6
th
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 Yang Xinyu Chen Chunyan
Contacts add.
CSG Building No.1 of the 6th
Industrial Road Shekou Shenzhen P.
R.C.
CSG Building No.1 of the 6th
Industrial 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
Newspapers for information disclosure
Securities Times China Securities Journal Shanghai Securities News
Securities Daily and Hong Kong Commercial Daily
Website assigned by CSRC to release
the annual report
www.cninfo.com.cn
The place for preparation of the annual
report
Office of the Board of Directors
IV. Registration changes of the Company
Organization code Unified social credit code: 914403006188385775
Changes of main business since listing
(if applicable)
No changes
Previous changes for controlling
shareholders (if applicable)
No changes
V. Other relevant information
CPA firm engaged by the Company
Name of CPA firm Asia Pacific (Group) CPAs (special general partnership)
Offices add. for CPA firm 2001 20th Floor Building 3 No. 16 Lize Road Fengtai District Beijing
Signing Accountants Zhou Xianhong Sun Weijie
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 re-statement on previous accounting data for accounting policy changed and
accounting error correction or not
□Yes √No
2020 2019
Changes over last
year
2018
Operating income (RMB) 10671253445 10472028099 1.90% 10609963011
Net profit attributable to shareholders
of the listed company (RMB)
779325592 536430818 45.28% 452965935
Net profit attributable to shareholders
of the listed company after deducting
non-recurring gains and losses
(RMB)
539976457 374386216 44.23% 367579835
Net cash flow arising from operating
activities (RMB)
2730619636 2379036320 14.78% 2130378100
Basic earnings per share
(RMB/Share)
0.25 0.17 47.06% 0.15
Diluted earnings per share
(RMB/Share)
0.25 0.17 47.06% 0.14
Weighted average ROE (%) 7.91% 5.77% 2.14% 5.16%
As at 31 Dec.
2020
As at 31 Dec. 2019
Changes over the
end of last year
As at 31 Dec.
2018
Total assets (RMB) 17882914898 18201235959 -1.75% 19114234184
Net assets attributable to shareholders
of the listed company (RMB)
10212989847 9495588878 7.56% 9103154571
The total share capital of the company as of the previous trading day of
disclosure (share)
3070692107
Fully diluted earnings per share calculated with latest share equity (RMB/share) 0.25
VII. Accounting Data Differences under Chinese Accounting Standards (CAS) and
International Financial Reporting Standards (IFRS) 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.
3. Reason of the difference between domestic and foreign accounting data
□ Applicable √ Not applicable
VIII. Main financial indexes by quarter
Unit: RMB
Q1 Q2 Q3 Q4
Operating income 1733965637 2690255712 3044056708 3202975388
Net profit attributable to shareholders of the listed
company
111278288 280188435 335353516 52505353
Net profit attributable to shareholders of the listed
company after deducting non-recurring gains and
losses
101805077 256839220 313760171 -132428011
Net cash flow arising from operating activities -11126768 790771157 893477970 1057497277
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 extraordinary gains/losses
√Applicable □ Not applicable
Unit: RMB
Item 2020 2019 2018 Note
Gains/losses from the disposal of non-current asset
(including the write-off that accrued for impairment of
assets)
-1158984 -909968 -454368
Governmental subsidy reckoned into current
gains/losses (not including the subsidy enjoyed in quota
or ration according to national standards which are
closely relevant to enterprise’s business)
99660400 184131420 94835539
In addition to the normal business of the company
effective hedging related business tradable financial
assets derivative financial assets tradable financial
liabilities changes in the fair value of the derivative
financial liabilities to generate profits and losses as
well as the disposal of tradable financial assets
derivative financial assets tradable financial liabilities
derivative financial liabilities and other creditor's rights
investment returns.
2654504
Loss and profit from external entrusted loan 5546384 11894654 534591
Profits and losses arising from changes in the fair value
of investment real estate that are subsequently
measured using the fair value model
179911200
Other non-operating income and expenditure except for
the aforementioned items
-6284556 -1612253 12099680
Less: Impact on income tax 38334180 25951263 16483870
Impact on minority shareholders’ equity (post-
tax)
2645633 5507988 5145472
Total 239349135 162044602 85386100 --
Reason shall be provided for the non-recurring profit and loss items defined by the company according to the definition
in the No. 1 of Explanatory Announcement on Information Disclosure for Companies Offering their Securities to the
Public: Non-recurring Profit and Loss and the listed non-recurring profit and loss items defined into recurring profit and
loss items
□ Applicable √ Not applicable
Section III Overview of the Company’s Business
I. Main business of the Company in 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 very popular at home and abroad. Its main business covers R&D manufacturing and
sales of high quality float glass and architectural glass solar glass silicon material renewable energy products such as
PV battery and modules and new materials and information display products such as ultra-thin electronic glass and
display devices. It also provides one-stop services such as project development construction operation and
maintenance of solar photovoltaic power plants.
Flat glass industry
CSG now has 10 float glass production lines representing the most advanced technology 2 solar glass production lines
and 12 solar glass deep processing production lines in Dongguan Chengdu Langfang Wujiang Xianning and also has
quartz sand raw material processing and production bases in Sichuan Jiangyou and Guangdong Qingyuan. The annual
capacity of various high-grade float glass has reached more than 2.47 million tons and the annual capacity of solar glass
has reached over 0.43 million tons. The float glass products cover high-grade float glass and ultra-clear float glass with
various thicknesses from 1.3mm to 25mm and the performance of the products all reach the leading level in China.Solar glass has a capacity of 60 million square per year of deep processing the products of which cover a variety of
thickness of 2-4mm deep processing products. Combining the rapid increase in the penetration rate of dual-glass
modules and the Company's future development needs the Company was building a total of three lightweight and high-
efficiency double-glass processing production lines in Wujiang and Dongguan adding 36 million square meters of
photovoltaic glass processing capacity which is expected to be put into operation in 2021.To make up for the
shortcomings of the Group's photovoltaic glass business capacity and large-scale layout the Company signed an
investment agreement with the Fengyang County Government of Anhui Province to build a manufacturing base of
lightweight and high-permeability panels for solar energy equipment which contains the construction of four
photovoltaic glass production lines and supporting processing lines with a daily melting capacity of 1200 tons per line.
At present the construction of the project is progressing smoothly as planned. In addition with the approval of the
Board of Directors the Group was going to build a photovoltaic glass production line and supporting processing lines
with a daily melting capacity of 1200 tons in Xianning base.The glass of CSG is widely used in high-end architectural curtain walls decoration and furniture reflective mirror
automotive windshield scanner and photocopier transparent panel home appliance panel display devices protection
and solar energy field. The Company’s products are sold all over the world and it has established long-term stable
business cooperation with many well-known processing enterprises.In order to overcome the adverse impact of the "epidemic" on production and operation the Company vigorously
promotes R&D innovation and upgrade and transformation business strategies and continuously improves the
profitability of the flat glass business by implementing differentiated competitive strategies. In 2021 the Company will
focus on strengthening the development of the high-end ultra-white glass market and increase the proportion of
differentiated product sales; the photovoltaic glass business will accelerate the technological transformation and
upgrading of the production line to increase production capacity of 1.6-2.5mm double-glass thin glass and photovoltaic
glazed backpanel glass; on the market side to strengthen strategic cooperation with industry-leading companies to
ensure stable sales; to further increase in high-end market share and establish long-term strategic partnerships with
industry-leading companies will further enhance the market competitiveness of CSG flat glass .
Architectural glass industry
CSG Group is one of the largest suppliers of high-grade engineering and architectural glass in China. It has built five
energy-saving glass processing bases in Tianjin Dongguan Xianning Wujiang and Chengdu. In order to better serve
the construction needs of Beijing Tianjin Hebei Yangtze River Delta Guangdong Hong Kong and Macao megalopolis
the Board of Directors of the Group successively approved the construction of Zhaoqing architectural glass base
Wujiang architectural glass intelligent factory and Tianjin architectural glass expansion project in 2020. The above
projects will be put into operation gradually from the third quarter of this year which will further strengthen the
competition and service capabilities of the Group's architectural glass business in the main battlefield of urban
construction and it will accumulate valuable experience for the construction and operation of CSG's new-generation
architectural glass processing base in the era of intelligent manufacturing. At the same time in line with the trend of
urban construction extending to the mainland in depth the Group has paid close attention to the layout of architectural
glass production capacity in the emerging central city group in the mainland. The Board of Directors of the Group has
approved the construction of a new architectural glass base in Xi'an and further seeks to lay out a class I or class II
architectural glass processing base suitable for its scale and demand in areas with similar conditions. In 2017 CSG 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 2020 which fully proves the leading position of CSG architectural glass
in the industry.The Company has the world's leading glass deep processing equipment and testing equipment and its products cover all
kinds of engineering and construction glass. The Company's R&D and application of glass coating technology keep
space with the world and its technology of high-end product even leads the world. Following the second generation of
energy-saving glass products the Company has successively developed the third generation and multi-function energy-
saving glass products with continuous improving energy-saving and heat-preservation effect. The domestic high-end
market share of high-quality energy-saving and environment-friendly LOW-E insulating glass far exceeds that of
competitors. At present the Company’s coated insulating glass and coated glass have reached annual capacity of more
than16.00 million square meters and 36.00 million square meters respectively.The Company’s quality management system for engineering and architectural glass has been respectively 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. Various high-quality architectural glass of the Company has been used in many
landmark buildings at home and abroad such as Beijing Capital International Airport CCTV Shanghai Oriental
Fisherman’s Wharf China Resources Headquarters Building Shenzhen KingKey100 Building Hong Kong-Zhuhai-
Macao Bridge Zhuhai port Hangzhou Yintai Plaza Xiamen Yinglan International Financial Center Gongga Airport in
LhasaZhuhai Jinwan Aviation City HUAFA International Business Center Beijing Dongzhimen Transportation Hub
Hangzhou Xiaoshan International Airport Zhuhai International Convention and Exhibition Center Phase 2 Ping An
Financial Center of China National Convention Center Beijing Deputy Administrative Center Beijing Daxing
International Airport Hangzhou Hampton and other more than ten Hilton Hotels Hong Kong Four Seasons Hotel
Melbourne Airport Midtown International Centre of Abu Dhabi Egypt's new capital CBD Korea LCT and Metropolis
Phase 2B.
Electronic glass and display industry
In 2020 the Company's electronic glass business continued to develop. Its four subsidiaries Hebei Panel Yichang
Photoelectric Qingyuan New Energy-Saving Materials and Xianning Photoelectric continued to actively implement
product upgrading and market upgrading in the application fields of intelligent electronic terminals touch components
vehicle mounted display industrial control and commercial display military security and smart home so that the
market share and brand effect of the Company's medium and high aluminum electronic glass products could improve
greatly. Rich product structure reliable delivery guarantee and strong technical innovation help the Company’s
electronic glass business maintain its dominant position in the fierce market competition. In 2020 the subsidiary
company Xianning CSG Photoelectric Glass Co. Ltd. realized batch sales of second-generation high aluminum
electronic glass and some performance indicators of the products have reached the international advanced level which
can meet the higher standard requirements of downstream end customers for basic materials in 3D curved surface
technology 5G communication solutions and other fields. The successful development of the product marks the
promotion of the competitiveness of CSG’s electronic glass business in the high-end application market. Based on the
current products the Company has laid out the research and development of the next generation electronic glass
products the third-generation high-aluminum products have been successfully developed in the laboratory and their
performance can be fully benchmarked against the new generation of competitive products of international brands
which will further enhance the competitive advantages of electronic glass products in the future. In addition the second
phase of the Qingyuan CSG project "One Kiln and Two Lines" was transferred to commercial operation in December
2020. This project is CSG’s key measure to actively implement the country’s advocacy of achieving leapfrog
development by industrial transformation and upgrading. It effectively enhances the overall profitability of electronic
glass while further consolidating and strengthening CSG's competitive advantage in the domestic electronic glass field.
In 2020 CSG's ultra-thin electronic glass was awarded the title of Single Champion Product by the Ministry of Industry
and Information Technology for the first time fully demonstrating the Company's brand influence and product strength
in the electronic glass field. In March 2021 in order to strengthen the Company's high-end market competitiveness in
the field of ultra-thin electronic glass for touch applications the Company's Board of Directors approved Hebei Panel
Glass to invest in a new ultra-thin electronic glass production line with a daily melting capacity of 110 tons and a
supporting R&D center. After the completion of the above-mentioned projects CSG Electronic Glass will achieve
comprehensive coverage of electronic glass products from the third generation of high aluminum to medium-aluminum
soda-calcium and from high to middle and low-end electronic glass products forming a more solid foundation for
market competition.CSG has long been committed to becoming the industry's leading electronic glass material solution
provider and it will continue to develop glass-based protective materials with higher strength and competitiveness in
the field of touch display develop human-computer interaction interface materials meeting the requirements of material
interconnection in the fields of smart home vehicle display and advanced medical and develop revolutionary
alternative materials in the fields of transportation and security.
CSG has been engaged in the field of touch display since 2000 and now it has formed a complete touch industry chain
from vacuum magnetron sputtering coating fine pattern lithography processing to touch display modules. Its main
business includes ITO conductive glass ITO conductive film touch sensor and module. Among them ITO conductive
glass and ITO conductive film as the traditional business of the Company are positioned at the middle and high-end
customers at home and abroad. In 2020 the Company's ITO glass market had adequate orders and both the production
and sales volume hit a record high which created a good operating performance for the Company. In recent years the
Company has focused on the layout of automotive business and passed IATF16949 quality management system
certification its main business covers core products such as automotive AG glass automotive multifunctional
composite cover automotive TP-Sensor which are widely used in automotive intelligent terminals such as automotive
central control screens automotive rearview mirrors automotive entertainment systems etc. In 2020 the Company's
vehicle business developed well and its production and sales grew steadily. CSG has become a brand supplier of
electronic application materials in the display touch industry which can provide customers with all-round one-stop
touch screen material solutions. In the future the Company will continue to optimize the layout in the vehicle field
further build the high-end manufacturing industry chain of vehicle touch display and become a high-quality component
supplier in the field of automotive electronics.Solar energy and other industries
CSG has entered solar photovoltaic industry since 2005 and is one of enterprises which firstly enter the field in China.
After more than ten years of construction operation and technological upgrading CSG has built an industry chain in the
field covering high-purity polycrystalline silicon materials high-efficiency silicon wafer silicon solar cell and modules
and the design and construction of solar photovoltaic power plants by which the Company ensures the stable quality
and best cost-efficiency of its PV products to customers.The Company now produces 9000 ton/year of high purity polycrystalline silicon 2.2 GW/year of silicon wafer
1GW/year of solar cell and 0.4GW/year of modules and holds 130MW photovoltaic power station. Under the
background of the era of grid parity in order to meet the market's demand for low-cost silicon materials the Company
has taken the initiative to upgrade polysilicon parking technology and promote industrial upgrading through
technological upgrades. Although the market demand for polycrystalline silicon wafers has dropped significantly the
Company continues to maintain R&D investment in polycrystalline ingot technology and insists on using high-quality
raw materials to keep the quality of polycrystalline silicon wafers at the leading level in the industry for a long time.The Company has completed the upgrade and transformation of PERC battery module technology and the battery
quality has reached the advanced level in the industry.In order to respond to the epidemic and fulfill its social responsibility during the critical period of the epidemic the
Company invested and established Shenzhen CSG Medical Technology Co. Ltd. which produced masks and took the
initiative to undertake the production task of materials reserved by Shenzhen Government for epidemic prevention and
control. At the same time the Company made use of the existing cell workshop purification workshop and PV cell beat-
type production and environmental purification production experience of Dongguan PV-tech Co. Ltd. to produce anti-
epidemic materials such as masks to meet the urgent market demand for protective materials and achieved good social
and economic benefits.II. Major changes in main assets
1. Details of major changes in main assets
Main assets Note of major changes
Equity assets No major changes
Fixed assets No major changes
Intangible assets No major changes
Construction in progress No major changes
Short term Loans Part of the loan was repaid during the report period.Long term Loans
During the report period the medium-term notes were reclassified to non-current liabilities
due within one year during the report period.
2. Main overseas assets
□ Applicable √ Not applicable
III. Core Competitiveness Analysis
1. The Company currently has built complete industrial chains in the involved industries which has complementary
advantage. For example in glass industry the Company has set up the industry chain as quartz sand → high quality float
glass → architectural energy-saving glass. With continuous the improvement of technology in the chains the industrial
advantages emerged.
2. The Company possesses a complete industry layout. At present the Company has established large production bases
in East China West China South China North China and Central China which enables the Company to be closer to
the market and serve the market better.
3. The Company has capability of technology innovation and product innovation. It owns independent intellectual
property rights of high-end float glass production process. The technology level of ultra-thin electronic glass is in the
leading position in China. The Company also keeps its R&D and production of energy-saving glass in line with the
world’s advanced level.
4. The Company possesses high anti-risk capability. It has established an effective internal control system. Meanwhile
the management and control ability of account receivable and inventory stand in a high level within the industry. CSG’s
new management team has an international perspective and a more open management philosophy. It aims to achieve the
transfer of capacity and continues to expand new business fields along with the national policies of the Belt and Road
based on the intensive development of CSG's main business making the Company be bigger and stronger so as to be a
comprehensive industrial group.
Section IV. Business Discussion and Analysis
I. Introduction
In 2020 the epidemic swept the world bringing unprecedented shocks to the domestic economy and the world's
economic development. The epidemic has led to a severe contraction of international trade the world economy has
experienced another severe recession since the financial crisis and the domestic economy is facing a significant
increase in unstable and uncertain factors. Sino-US frictions have also escalated and spread from the economic and
trade level to other levels and the international trade environment has become tense. However with the timely
formulation of the Party Central Committee’s guidelines and policies for epidemic prevention and control and the
effective implementation of various regions and departments the epidemic has been effectively controlled. The new
development paradigm of "Dual Circulation" which allows the domestic and overseas markets to reinforce each other
with the domestic market as the mainstay is accelerating to form and the domestic economic recovery continues to
improve.
According to data released by the National Bureau of Statistics in 2020 the overall performance of China's national
economy was stable and the quality of development was steadily improved. China's GDP reached RMB 101.60 trillion
a year-on-year increase of 2.3% and fixed asset investment (excluding rural households) RMB 51.89 trillion a year-on-
year increase of 2.9% real estate development investment was RMB 14.14 trillion a year-on-year increase of 7.0% and
infrastructure investment increased by 0.9%. In 2020 the cumulative output of flat glass was 946 million weight boxes
a year-on-year increase of 1.3%."Glass For World CSG From China" facing the severe economic environment competitive pressures and the
challenges posed by the epidemic under the correct leadership of the Board of Directors CSG aims to be a world-class
enterprise and firmly follows the path of high-quality development sticking to the right path and making innovations
focusing on its core business glass business to make the enterprise greater preciser and stronger exercising the
internal works forging the strengths and making up for the weaknesses sharpening the competitive edge
systematically improving comprehensive operational capabilities and the group management and operation
collectivization capabilities is being significantly improved. The Group’s annual operating performance achieved a
substantial year-on-year growth. During the report period the Company achieved operating income of RMB10.671
billion a year-on-year increase of 1.90%. Based on prudent and moderate business principle the Company
accumulatively accrued asset impairment reserves of approximately RMB746 million during the report period. After
asset impairment the Company still achieved net profit of RMB 812 million in 2020 with a year-on-year increase of
44.88%; and net profit attributable to the parent company of RMB 779 million with a year-on-year increase of 45.28%.
I. Operation of each industry of the Group
In 2020 the Company's three pieces of glass (float glass photovoltaic glass and electronic glass) and one brand
(architectural glass) four pieces of glass were fleetly developed. The main business of glass achieved the best
performance in the history of the Group. The total net profit of the four pieces of glass was RMB 1.65 billion. Among
them the total operating revenue of float glass photovoltaic glass and architectural glass was RMB 8.71 billion with a
year-on-year increase of RMB 730 million or 9%; the net profit was RMB 1.488 billion with a year-on-year increase of
RMB 553 million or 59%.
In recent years the Group has designed differentiated business strategies based on the characteristics of various
businesses and the market environment. In 2020 the effects of these strategic adjustments gradually appeared and
fruitful results were achieved including:
Float Glass focusing on the new demands brought about by the continuous improvement of building energy
conservation visual effects and safety the Company lays out arrangements ahead of schedule and firmly follows the
route of high-end differentiated products: the production capacity of ultra-white glass is significantly increased and the
high-end series of CSG ultra-white "Blue Diamond" are created and the brand become a leader in subdivision of the
industry; through kiln line design process setting adjustments and transformation of some production equipment the
Company has greatly improved the yield of ultra-thin and ultra-thick differentiated products with difficult production
process and high value-added. The proportion of differentiated products increase significantly and market share of high
grade float glass enjoys continued leadership in subdivision; utilizing cooperation experience with First Solar in using
ultra-thin float glass as the packaging material for thin-film photovoltaic modules being the first to make a
breakthrough this year by converting ultra-thin and ultra-white float glass into backpanel packaging materials for
crystalline silicon double-glass module which opens up new profit growth points. In 2020 another batch of national key
projects used CSG ultra-white float glass original sheets represented by international image projects such as Daxing
International Airport Winter Olympic Stadium Hong Kong-Zhuhai-Macao Bridge Border Inspection Building etc.which fully demonstrated CSG products Quality and technological accumulation. In 2020 the float glass business
revenue increased by 5% compared with the same period last year and the net profit increased by 76%.Photovoltaic Glass focuses on the increasing trend of double-glass module penetration rate. A few years ago the
Company took the lead in researching the production process processing technology and equipment of ultra-thin
photovoltaic glass below 2mm. The production capacity quality and comprehensive manufacturing yield rate of ultra-
thin photovoltaic glass below 2mm have a leading position in the industry. In 2020 the global photovoltaic installation
speed increased the penetration rate of double-glass modules increased significantly compared with the previous year
and the insufficient market supply greatly enhanced the profitability of the photovoltaic glass business. Compared with
the same period last year the revenue of photovoltaic glass business increased by 20% and the net profit increased by
137%. At the same time in order to make up for the shortcomings of photovoltaic glass business capacity and large-
scale layout the Group took this window of opportunity. In March the tensest month of epidemic prevention and
control the Company signed an investment agreement with the Fengyang county government of Anhui to build
manufacturing base project of lightweight and high-permeability panels for solar energy equipment applied for non-
public issuance of A shares to raise construction funds at the same time and quickly obtained the approval of CSRC
which enabled the Company to take the lead in a new round of capacity expansion of domestic photovoltaic glass. The
construction of 4 photovoltaic glass production lines and supporting processing lines with a daily melting capacity of
1200 tons per line will enhance the Group's competitive advantage in this subdivision. At present the construction of
the project is progressing smoothly as planned. In addition with the approval of the Board of Directors the Group was
going to build a photovoltaic glass production line and supporting processing lines with a daily melting capacity of
1200 tons at Xianning base; a total of three photovoltaic glass processing lines were built at Wujiang base and
Dongguan base further adding 36 million square meters of photovoltaic glass processing capacity. Under the
background of the era of CO2 emissions peak and carbon neutrality the photovoltaic glass business will become the
new champion business of CSG.
Architectural glass is the golden brand of CSG and it has formed quality service and continuous research and
development capabilities that match the brand. Focusing on the Country's improvement of building energy-saving
standards and high-rise building safety standards during the 13th Five-Year Plan period it strengthens brand building
and adheres to the customized business strategy of trinity of technical service marketing and R&D and manufacturing
relying on CSG's manufacturing and R&D strength to improve order quality intensifies the market promotion of
complex composite products and high-end energy-saving glass products and consolidates and expands market share.To promote equipment production efficiency by improving the automation and information level of production lines
and reduce production costs material consumption and energy consumption with technological advancement and
process optimization. In 2020 under the influence of multiple unfavorable factors such as the sharp increase in the
overall price of float glass and the delay of downstream project progress caused by the epidemic the architectural glass
business still achieved double growth in operating income and net profit with year-on-year revenue growth of 9% and
net profit growth of 9%. In 2017 CSG 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 2020 which fully proves the
leading position of CSG architectural glass in the industry. In order to better serve the construction needs of Beijing
Tianjin Hebei Yangtze River Delta Guangdong Hong Kong and Macao megalopolis the Board of Directors of the
Group successively approved the construction of Zhaoqing architectural glass base Wujiang architectural glass
intelligent factory and Tianjin architectural glass expansion project in 2020. The above projects will be put into
operation gradually from the third quarter of this year which will further strengthen the competition and service
capabilities of the Group's architectural glass business in the main battlefield of urban construction and it will
accumulate valuable experience for the construction and operation of CSG's new-generation architectural glass
production base in the era of intelligent manufacturing. At the same time in line with the trend of urban construction
extending to the mainland in depth the Group has paid close attention to the layout of architectural glass production
capacity in the emerging central city group in the mainland. The Board of Directors of the Group has approved the
construction of a new architectural glass base in Xi'an and further seeks to lay out a class I or class II architectural glass
processing base suitable for its scale and demand in areas with similar conditions. With the further improvement of
architectural glass production capacity and market service network layout obstacles restricting the further increase in
the market share of CSG architectural glass will be gradually eliminated.
Electronic glass and display business focusing on increasing R&D investment the Company breaks through high-end
market barriers with independent intellectual property rights and independent innovation and firmly takes the
development route of product upgrading and iteration to accelerate import substitution. In May 2020 Xianning
Optoelectronics which had just emerged from the epidemic prevention and control blockade overcame the new
generation of high-aluminum electronic glass technology to achieve mass production and market sales of high-
aluminum second-generation KK6 glass. This product has excellent performance in light transmittance color reduction
secondary enhanced ion exchange depth enhanced drop resistance scratch resistance and process ability which can
meet the higher standard requirements and technical level of basic materials for downstream end customers in the fields
of 3D surface technology 5G communication solutions etc. and its technical level is comparable to the advanced level
of foreign countries reaching the standard requirements for the flagship models of domestic mainstream mobile phone
manufacturers. CSG's electronic glass has experienced ten years of intensive and pioneering effort from soda-calcium
to medium-aluminum to high-aluminium and then to the second generation of high-aluminum. Every product upgrade
means a comprehensive upgrade of production equipment and process systems after being well-grounded it finally
breaks the technical barriers and market monopoly of international giants on high-end electronic glass and fills the gap
of domestic high-end electronic glass industry. At present CSG's third-generation high-aluminum products have been
successfully developed in the laboratory and their performance can be fully benchmarked against the new generation of
competitive products of international brand. In order to rapidly industrialize the third-generation high-aluminum
products the Company took the initiative to carry out cold repair and technical upgrades on CSG's first high-aluminum
electronic glass production line the Line I of Qingyuan in April 2020. If the technological transformation is successful
it will further enhance the competitiveness of CSG electronic glass in the high-end electronic glass market. In addition
the Line II of the Qingyuan CSG project "One Kiln and Two Lines" was transferred to commercial operation in
December 2020. This project is CSG’s key measure to actively implement the country’s advocacy of achieving leapfrog
development by industrial transformation and upgrading. It effectively enhances the overall profitability of electronic
glass while further consolidating and strengthening CSG's competitive advantage in the domestic electronic glass field.
In 2020 CSG's ultra-thin electronic glass was awarded the title of Single Champion Product by the Ministry of Industry
and Information Technology for the first time making CSG the only "Double Champion " in China's glass industry and
one of the few in the national manufacturing industry that has two single championship products and fully
demonstrating the Company's brand influence and product strength in the electronic glass field. In March 2021 in order
to strengthen the Company's high-end market competitiveness in the field of ultra-thin electronic glass for touch
applications the Company's Board of Directors approved Hebei Panel Glass to invest in a new ultra-thin electronic
glass production line with a daily melting capacity of 110 tons and a supporting R&D center. After the completion of
the above-mentioned projects CSG Electronic Glass will achieve comprehensive coverage of electronic glass products
from the third generation of high aluminum to medium-aluminum soda-calcium and from high to middle and low-end
electronic glass products forming a more solid foundation for market competition.The display business relies on the production capacity advantages of CSG electronic glass and the accumulation of
more than 20 years of research and development experience in the processing and manufacturing of yellow light touch
components. It has built core competitiveness around vehicle display and ITO touch products and has gradually
transformed into an important force for domestic suppliers of automotive display packaging materials touch
components and modules. Although the production base is located in Yichang Hubei Province it was affected by the
epidemic and did not gradually resume production until May. However with the active ITO market and the trial
production of the newly constructed AG production line it has achieved steady growth in production and sales with
differentiated product innovation ideas.There are three production bases of CSG's electronic glass and display business located in Hubei Province the
operations of which were greatly affected by the epidemic prevention and control situation in the first half of the year.
After May the production and operation gradually returned to normal. At the same time the Line I of Qingyuan began
to undergo cold repair and technical renovation in April while the Line II of Qingyuan only transferred to commercial
operation at the end of December unable to contribute revenue and net profit. Even under such adverse circumstances
with the smooth progress of new product market development and the unremitting efforts of all colleagues in its
subsidiaries the electronic glass and display business still achieved double growth of operating revenue and net profit
after deducting non-recurring gains and losses with an increase of 4% in operating revenue and 18% in net profit after
deducting non-recurring gains and losses. Among them the operating revenue and net profit after deducting non-
recurring gains and losses of the electronic glass business increased by 11% and 30% respectively compared with the
same period last year.Solar and other businesses
Silicon material base of solar energy industry located in the high-risk area in the early stage of the epidemic was
seriously affected by the epidemic. Apart from stopping production of polysilicon for technological upgrading silicon
wafer was out of production before April and gradually resumed production after April. As the overseas PV market
was also affected by the epidemic the delivery speed of PV products slowed down but the production and sales
gradually recovered in the second half of the second quarter and the market gradually improved. PV industry has the
characteristics of rapid technological iteration and obvious late-comer advantages and the market competition is
extremely fierce. Therefore the Company achieves the goal of reducing costs and increasing efficiency by improving
the ability of lean production management and continuously improving optimizing and adjusting technology and
processes to reduce the energy consumption of various materials thereby reducing production costs; creating a
diversified product structure and improving product quality to enhance profitability.In addition by making use of the production experience facilities and rhythmic production experience of the clean
plant of photovoltaic manufacturing enterprises the Company started crossover production of anti-epidemic masks and
disinfection products (84 disinfectant) during the epidemic period to meet the urgent market demand for protective
materials and donated more than 10 million self-produced masks to Shenzhen and other places for fully fulfilling the
Company's social responsibility which achieved good social and economic benefits as well.
Affected by the stagnant production and shrinking polycrystalline market share during the epidemic period the
operating revenue of solar and other industries decreased year on year. During the report period based on prudent and
moderate business principle the Company made a provision of RMB 642 million for impairment of some assets of
silicon materials with backward technology and high energy consumption. After impairment the net profit of solar
energy and other industries was RMB - 525 million.II. Other management work
In recent years in order to ensure the rapid and healthy development of the Group's various industries the Group has
made careful arrangements for building and strengthening CSG's core competitiveness after prudent and comprehensive
analysis and detailed and objective benchmarking and strictly supervised the implementation mainly as follows:
Systematic comprehensive management is the guarantee of product quality and operating efficiency covering all
aspects of the entire work process and the entire work cycle of the Company's production and operation one change
making all change and it is CSG's core competitive advantage which is the most difficult to be completely copied by
other enterprises. In order to further improve the systematic and comprehensive management level of the group the
Group launched the evaluation of CSG's five-star factory in 2020 taking this as an opportunity to drive all employees to
participate in the basic management solidified and promoted outstanding experience improved management level and
laid a good foundation for CSG's capacity expansion and management output. In 2020 a number of CSG subsidiaries
won the local government quality award.The iterative ability of technology technology and product R&D is the key guarantee for sustainable and healthy
development of enterprises and the core element of CSG for forming high value-added business line barriers keeping
the industry leading continuously and realizing the core element of "we have while others don't; when they have ours
are better even if theirs are better ours are much stronger". In recent years the Group has targeted on building an
innovative enterprise and has continued to increase R&D investment. In 2020 the R&D expenditure was approximately
RMB 405 million an increase of 10.35% over the previous year. It built professional core R&D teams in different
business fields through talent introduction and independent training and at the same time it integrated resources and
establishes in-depth cooperation in production education and research with domestic silicate major universities such as
South China University of Technology Beijing University of Technology Wuhan University of Technology Yanshan
University etc. to accelerate the transformation of scientific research results and strengthen basic research. In 2020 a
number of CSG's subsidiaries won the awards of science and technology progress at or above the provincial level small
giant specializing in special and new technology invisible champion demonstration enterprise and technological
innovation demonstration enterprise. In 2020 the number of patent applications and authorizations of the company
reached a record high with a total of 340 patent applications submitted (1.5% higher than that in 2019) including 146
invention patent applications (37.7% higher than that in 2019); 263 new patent authorizations (10.04% higher than that
in 2019) including 30 invention patents (11% higher than that in 2019).
Team accumulation is the fundamental guarantee for the inheritance of CSG's spirit and business. In 2020 the Group
increased investment in the construction of talent echelon building an internal lecturer team through the "Dandelion
Plan" to increase training efforts; encouraging and supporting the growth of talents discovered through selecting and
cultivating youth reserve cadres; reflecting the value of front-line outstanding employees through the selection of
invisible craftsmen's deeds. During the year the Group emerged 3 national-level industry model workers and advanced
individuals and 5 provincial-level and above model workers and advanced individuals.
Environmental protection is the lifeline for the survival and development of glass enterprises and it is a concentrated
expression of corporate social responsibility in energy-intensive industries. As early as more than ten years ago CSG
took the lead in the entire industry to use natural gas for all production lines. At the same time it was the first in the
industry to use waste heat power generation distributed photovoltaic power generation and other methods to achieve
comprehensive energy utilization. Through comprehensive exhaust gas treatment such as desulfurization denitrification
and dust removal it realized ultra-low emission far lower than the national standard pollutant emission value. In the era
of the era of CO2 emissions peak and carbon neutrality energy saving and emission reduction relatively low energy
consumption and high energy efficiency will bring enterprises higher competitiveness and greater living space. The
Strategy Department of the Group sets up an energy management group to supervise the energy consumption
management of its subsidiaries and the Safety and Environmental Protection Department of the Group is responsible
for the supervision and management of the pollutant emission of the Group so as to ensure that the energy consumption
control and emission control per unit capacity of CSG is always at the leading level in the industry under the premise of
the same tonnage and kiln age. In 2020 the Company's waste heat power generation distributed photovoltaic power
generation and other self-generated electricity had reached 32% of the Group's total electricity consumption and the
Group's overall annual CO2 emissions decreased by 1.64% compared with the previous year. In 2020 many of the
Group's subsidiaries were rated as environmental protection A-level enterprises and national and provincial green
factories.
CSG brand is the witness and crystallization of CSG's more than 30 years of history and is deeply recognized and
respected by the society. It represents the quality and spirit of CSG and contains great value and influence. In recent
years the Group has strengthened its brand operations and has cultivated sub-brands such as the "Blue Diamond" brand
of ultra-white glass the "Kirin King" brand of electronic glass and the "Yinglang" brand of jade glass in subdivisions
forming a brand matrix. At the same time the Group has strengthened brand maintenance and spared no effort to crack
down on illegal acts in the market that falsely use the brand of CSG to damage the reputation and interests of CSG so
as to protect the brand and polish the CSG's golden signs.Large-scale scientific layout CSG previously took architectural glass as the center and formed a national layout of six
bases in the East West north South and middle according to the concentration of urban construction. However the
production capacity of float glass and photovoltaic glass is relatively dispersed which is not conducive to the formation
of economies of scale in the manufacture of bulk products especially photovoltaic glass the existing two production
lines of which are located in Dongguan and Wujiang respectively. Therefore the Group has decided to choose areas
where resource advantages or market advantages are concentrated in the layout of the new production base and focus
on a large-scale layout to maximize the overall competitiveness of the Company. Therefore the construction of the
photovoltaic glass manufacturing base in Fengyang Anhui Province with a one-time layout of four photovoltaic glass
production lines and supporting processing lines with a daily melting capacity of 1200 tons is a strategic measure for
the scientific layout adjustment of the Group.Strategic resource reserves and solid supply chain guarantee are the material basis for the Group's strategic
development. With the current increase in the Group's production capacity of ultra-white float glass photovoltaic glass
and electronic glass the demand for ultra-white low-iron quartz sand and other mineral raw materials continues to
increase. While the Group is deploying a photovoltaic glass manufacturing base in Fengyang it will also build an ultra-
white quartz sand production base locally to ensure the project and the Group's strategic needs. Meanwhile CSG
established Group Procurement Management Center in 2020 comprehensively established a hierarchical procurement
system vigorously expanded procurement channels implemented supplier inspections and follow-up evaluations and
reduced procurement costs through large-scale centralized procurement. Group first-level centralized procurement
projects involved more than 30 categories the amount of which accounted for about 70% of the total purchase amount
of the Group which further consolidated the foundation of the Group's supply chain guarantee.
II. Main business analysis
1. Overview
Unit: RMB
Items 2020 2019
Range of
Change
Analysis of reasons
Operating income 10671253445 10472028099 1.90%
Operating costs 7444465731 7743129614 -3.86%
Sales expenses 233918938 389269235 -39.91%
Mainly due to the
implementation of the new
revenue standard in the current
period to reclassify
transportation costs to operating
costs.
Administration expenses 666976561 602590650 10.68%
R&D expenses 404842498 366871283 10.35%
Financial expenses 224011920 290417403 -22.87%
Mainly due to the decrease in
interest expenses
Net cash flow arising from
operating activities
2730619636 2379036320 14.78%
Net cash flow arising from
investment activities
-789792826 -733075474
Net cash flow arising from
financing activities
-1644587036 -2040156870
Mainly due to the increase in
cash inflow from financing
activities
2. Revenue and cost
(1) Constitution of operation revenue
Unit: RMB
2020 2019
Increase/decrease
y-o-y Amount
Ratio in operation
revenue
Amount
Ratio in operation
revenue
Total of operating
income
10671253445 100% 10472028099 100% 1.90%
According to industry
Glass industry 8709771261 81.62% 7979780615 76.20% 9.15%
Electronic glass &
Display industry
1087361814 10.19% 1044208070 9.97% 4.13%
Solar energy and
other industries
988782926 9.27% 1542206620 14.73% -35.89%
Undistributed 217971560 2.04% 82205712 0.79% 165.15%
Amount of
unutilized
-332634116 -3.12% -176372918 -1.69% 88.60%
According to product
Glass products 8709771261 81.62% 7979780615 76.20% 9.15%
Electronic glass &
Display products
1087361814 10.19% 1044208070 9.97% 4.13%
Solar energy and
other products
988782926 9.27% 1542206620 14.73% -35.89%
Undistributed 217971560 2.04% 82205712 0.79% 165.15%
Amount of
unutilized
-332634116 -3.12% -176372918 -1.69% 88.60%
According to region
Mainland China 9538506225 89.39% 9123825213 87.13% 4.55%
Overseas 1132747220 10.61% 1348202886 12.87% -15.98%
(2) List of the industries products or regions exceed 10% of the operating income or operating profits of
the Company
√Applicable □ Not applicable
Unit: RMB
Operating
revenue
Operating cost
Gross profit
ratio
Increase/decrea
se of operating
revenue y-o-y
Increase/decrea
se of operating
cost y-o-y
Increase/decrea
se of gross
profit ratio y-o-
y
According to industry
Glass industry 8709771261 5977946913 31.37% 9.15% 3.20% 3.96%
Electronic glass
& Display
industry
1087361814 755633963 30.51% 4.13% 2.56% 1.07%
Solar energy
and other
industries
988782926 831458581 15.91% -35.89% -36.99% 1.48%
According to product
Glass products 8709771261 5977946913 31.37% 9.15% 3.20% 3.96%
Electronic glass
& Display
products
1087361814 755633963 30.51% 4.13% 2.56% 1.07%
Solar energy
and other
products
988782926 831458581 15.91% -35.89% -36.99% 1.48%
According to region
Mainland China 9538506225 6650965989 30.27% 4.55% -0.97% 3.88%
Overseas 1132747220 793499742 29.95% -15.98% -22.72% 6.11%
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
Whether the Company’s goods selling revenue higher than the service revenue
√Yes □ No
Industry Item Unit 2020 2019
Increase/decrease
y-o-y (%)
Flat glass
Sales volume 10000-ton 299 292 2.40%
Output 10000-ton 296 294 0.68%
Inventory 10000-ton 6 9 -33.33%
Architectural glass
Sales volume 10000-M
2
3441 2879 19.52%
Output 10000-M
2
3445 2916 18.14%
Inventory 10000-M
2
118 114 3.51%
Electronic glass
Sales volume ton 57651 50497 14.17%
Output ton 49405 61722 -19.96%
Inventory ton 9232 17478 -47.18%
Silicon wafer
Sales volume 10000-piece 15497 36782 -57.87%
Output 10000-piece 15353 36990 -58.49%
Inventory 10000-piece 386 530 -27.17%
Solar cell
Sales volume MW 457 784 -41.71%
Output MW 429 890 -51.80%
Inventory MW 6 34 -82.35%
Reasons for y-o-y relevant data with over 30% changes
√Applicable □ Not applicable
1. Flat glass: The decrease in inventory was mainly due to changes in the company's sales rhythm.
2. Electronic glass: The decline in inventory was affected by the technical transformation of the Line I of Qingyuan and
also benefited from the Company's efforts to increase market promotion.
3. Silicon wafer: The decrease in production and sales was mainly due to the epidemic and structural changes in market
demand.
4. Cells: The decrease in production and sales was mainly due to the epidemic and structural changes in market demand.
(4) Fulfillment of significant sales contracts signed by the Company up to the report period
√Applicable □ Not applicable
Name of
company
signing the
contract
Name of the other party
signing the contract
Subject
matter
Total contract
amount
Progress of
contract
performance
Amount of sales
revenue
recognized in the
current period
and accumulated
Collection of
accounts
receivable
Wujiang CSG
Glass Co. Ltd.
Dongguan CSG
Solar Glass Co.Ltd.LONGi Solar
Technology Ltd.Zhejiang LONGi Solar
Technology Ltd.Taizhou LONGi Solar
Technology Ltd.Yinchuan LONGi Solar
Technology Ltd.
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.Photovoltaic
glass
RMB 6500
million (tax
included)
In progress
The recognized
income was
RMB 134.36
million in this
period and the
accumulated
recognized
income
wasRMB134.36
million.
RMB 75.94
million
(5) Constitution of operation cost
Main business cost structure
Industry classification
Unit: RMB
Industry Item
2020 2019
Increase/decreas
e y-o-y Amount
Ratio in
operation cost
Amount
Ratio in
operation cost
Glass industry
Materials 4677850685 78.25% 4558141051 78.98% 2.63%
Labor wages 560650194 9.38% 560930664 9.72% -0.05%
Costs 739910129 12.37% 652239422 11.30% 13.44%
Electronic glass
& Display
industry
Materials 525267357 69.53% 482812079 65.57% 8.79%
Labor wages 95305488 12.62% 97520763 13.24% -2.27%
Costs 134913713 17.85% 155953711 21.18% -13.49%
Solar energy
and other
industries
Materials 589781853 76.76% 1058197056 82.17% -44.27%
Labor wages 72529031 9.44% 109535172 8.51% -33.78%
Costs 106015979 13.80% 120118749 9.33% -11.74%
Note: The cost includes the transportation cost included in the cost according to the new revenue standard.Product classification
Unit: RMB
Product Item
2020 2019
Increase/decrea
se y-o-y Amount
Ratio in
operation cost
Amount
Ratio in
operation cost
Glass products
Materials 4677850685 78.25% 4558141051 78.98% 2.63%
Labor wages 560650194 9.38% 560930664 9.72% -0.05%
Costs 739910129 12.37% 652239422 11.30% 13.44%
Electronic glass
& Display
products
Materials 525267357 69.53% 482812079 65.57% 8.79%
Labor wages 95305488 12.62% 97520763 13.24% -2.27%
Costs 134913713 17.85% 155953711 21.18% -13.49%
Solar energy
and other
products
Materials 589781853 76.76% 1058197056 82.17% -44.27%
Labor wages 72529031 9.44% 109535172 8.51% -33.78%
Costs 106015979 13.80% 120118749 9.33% -11.74%
(6) Whether the consolidated scope changed during the report period
√ Yes □No
On January 7 2020 the Group set up a subsidiary CSG (Thailand) Co. Ltd. As of December 31 2020 the Group has
not actually contributed capital and the Group holds 100% of its shares.
On February 5 2020 the Group set up a subsidiary Anhui CSG New Energy Materials Technology Co. Ltd
(Abbreviated as "Anhui New Energy Company"). As of December 31 2020 the Group has invested RMB 20 million.
The Group owns 100% of its equity.
On February 8 2020 the Group set up a subsidiary Anhui CSG New Quartz Material Co. Ltd (Abbreviated as "Anhui
Quartz Company"). As of December 31 2020 the Group has invested RMB 3 million. The Group owns 100% of its
equity.
On February 10 2020 the Group set up a subsidiary Shenzhen CSG Medical Technology Co. Ltd (Abbreviated as
"Shenzhen CSG Medical Company"). As of December 31 2020 the Group has invested RMB 20 million. The Group
owns 100% of its equity.
On August 31 2020 the Group set up a subsidiary CSG (Suzhou) Corporate Headquarters Management Co. Ltd. As
of December 31 2020 the Group has not actually contributed capital and the Group holds 100% of its shares.
(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) 977950348
Proportion in total annual sales volume for top five customers 9.17%
Information of the top five customers of the Company
Serial Name of customer Sales volume (RMB)
Proportion in total annual
sales
1 Customer A 221585033 2.08%
2 Customer B 218171404 2.04%
3 Customer C 206530744 1.94%
4 Customer D 181568127 1.70%
5 Customer E 150095040 1.41%
Total 977950348 9.17%
Other statement of main customers
□ Applicable √ Not applicable
Major suppliers of the Company
Total purchase amount from the top five suppliers (RMB) 1266310007
Proportion in total annual purchase amount from the top five suppliers 16.23%
Information of the top five suppliers of the Company
Serial Name of supplier Purchase amount (RMB)
Proportion in total annual
purchase
1 Supplier A 386428072 4.95%
2 Supplier B 238639110 3.06%
3 Supplier C 231779015 2.97%
4 Supplier D 211515585 2.71%
5 Supplier E 197948225 2.54%
Total 1266310007 16.23%
Other statement of major suppliers
□ Applicable √ Not applicable
3. Expenses
Unit: RMB
2020 2019 Increase/decrease y-o-y Note of major changes
Sales expense 233918938 389269235 -39.91%
Mainly due to the
implementation of the new
revenue standard in the
current period and the re-
entry of the transportation
cost.Management expense 666976561 602590650 10.68%
Financial expense 224011920 290417403 -22.87%
Mainly due to the reduction
of interest costs.
R&D expenses 404842498 366871283 10.35%
4. R&D expenses
√Applicable □ Not applicable
The Company always emphasizes R&D of new products new technology and new craft and R&D aims tostay close to
the market production and industry.
R&D investment of the Company
2020 2019 Ratio of change
Number of R & D personnel (person) 170 184 -7.61%
Ratio of number of R&D personnel 1.61% 1.76% -0.15%
Amount of R & D investment (RMB) 434641497 440884641 -1.42%
Ratio of the R&D investment to the operating
income
4.07% 4.21% -0.14%
Amount of the capitalized R&D investment
(RMB)
29798999 74013358 -59.74%
Ratio of the capitalized R&D investment to the
R&D investment
6.86% 16.79% -9.93%
Reason of remarkable changes over the last 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
5. Cash flow
Unit: RMB
Item 2020 2019 Increase/decrease y-o-y
Subtotal of cash in-flow from operation activity 11975699992 11798483075 1.50%
Subtotal of cash out-flow from operation
activity
9245080356 9419446755 -1.85%
Net cash flow from operation activity 2730619636 2379036320 14.78%
Subtotal of cash in-flow from investment
activity (1)
439718884 37590251 1069.77%
Subtotal of cash out-flow from investment
activity (2)
1229511710 770665725 59.54%
Net cash flow from investment activity -789792826 -733075474
Subtotal of cash in-flow from financing
activity(3)
4422844911 3471013352 27.42%
Subtotal of cash out-flow from financing
activity
6067431947 5511170222 10.09%
Net cash flow from financing activity(4) -1644587036 -2040156870
Net increased amount of cash and cash
equivalent(5)
292193166 -393291883
Relevant data year-on-year major changes in the main influencing factors
√Applicable □ Not applicable
(1) Mainly due to the recovery of entrusted loans.
(2) Mainly due to the increase in cash paid for the purchase and construction of fixed assets intangible assets and other
long-term assets.
(3) Mainly due to the increase in cash received from the issuance of bonds.
(4) Mainly due to the increase in cash inflow from financing activities.
(5) Mainly due to the increase in net cash from operating activities and the change in net cash from financing activities.
Notes to the reason of the significant differences between the net cash flow from the operating activities and the net
profits of the year during the report period
Applicable √ Not applicable
III. Analysis of the non-core business
√Applicable □ Not applicable
Unit: RMB
Amount Ratio in total profit Note for the reason
Sustainable
or not
Investment
income
2654504 0.24% Income from structured deposit No
Changes in fair
value gains and
losses
179911200 16.27%
Changes in fair value of investment real
estate
No
Asset impairment 738508094 66.79%
Mainly due to long-term asset impairment
losses
No
Non-operating
income
14369839 1.30%
Mainly claim income and unpaid
payments etc.No
Non-operating
expenses
20554395 1.86% Mainly due to donations No
IV. Assets and liabilities
1. Major changes of assets and liabilities composition
The company implemented the new revenue standard or the new lease standard for the first time from 2020 and
adjusted and implemented the relevant items of the financial statement at the beginning of the year
Applicable
Unit: RMB
As at 31 Dec. 2020 As at 31 Dec. 2019 Change
of
proportio
n
Notes of major changes
Amount
Proportion
in total
assets
Amount
Proportio
n in total
assets
Monetary funds 2125788903 11.89% 1986980418 10.92% 0.97%
Notes receivable 207966892 1.16% 297023380 1.63% -0.47%
Mainly due to changes in the
collection methods of some
subsidiaries
Accounts
receivable
681467133 3.81% 649681177 3.57% 0.24%
Inventory 815156318 4.56% 812321690 4.46% 0.10%
Receivables
financing
382527782 2.14% 258296826 1.42% 0.72%
Mainly due to the increase in
receipt of bank acceptance bills
Other current
assets
140031544 0.78% 447995931 2.46% -1.68%
Mainly due to the recovery of
entrusted loans
Investment real
estate
383084500 2.14% 2.14%
Mainly due to the conversion of
self-use real estate into investment
real estate by some subsidiaries
Fix assets 9145644569 51.14% 9783037301 53.75% -2.61%
Construction in
process
1893380611 10.59% 1902140035 10.45% 0.14%
Development
expenditure
49153407 0.27% 85240356 0.47% -0.20%
Mainly due to the conversion of
development expenditures to
intangible assets
Deferred income
tax assets
194979414 1.09% 205792587 1.13% -0.04%
Other Non-
Current Assets
193359445 1.08% 120399893 0.66% 0.42%
Mainly due to the advance
payment of engineering
equipment for the construction of
some subsidiaries
Short-term loans 352895571 1.97% 2240969137 12.31% -10.34%
Mainly due to the repayment of
part of the loan
Notes payable 144851192 0.81% 232063968 1.27% -0.46%
Due to the decrease in the number
of newly opened bills and the
maturity of the original bills
Advance receipt 292803811 1.61% -1.61%
Mainly due to the reclassification
of advance receipts to contract
liabilities
Contract liabilities 296776624 1.66% 1.66%
Mainly due to the reclassification
of advance receipts to contract
liabilities
Taxes payable 194921071 1.09% 115425044 0.63% 0.46%
Mainly due to the increase in
corporate income tax and value-
added tax payable
Other payables 287332992 1.61% 351374775 1.93% -0.32%
Non-current
liabilities due
927531709 5.19% 1712456928 9.41% -4.22%
Mainly due to the repayment of
medium-term notes
within one year
Other current
liabilities
34586292 0.19% 300000 0.00% 0.19%
Mainly due to the taxation of
contract liabilities listed in this
subject according to the new
income standard
Long-term loans 853253983 4.77% 1320225000 7.25% -2.48%
Mainly due to the reclassification
of medium-term notes to non-
current liabilities due within one
year
Bonds payable 1994020348 11.15% 11.15%
Mainly due to newly issued
corporate bonds
Long-term
payables
87240529 0.48% -0.48%
Mainly due to the repayment of
financial lease payments
Deferred income
tax liabilities
102619932 0.57% 30197657 0.17% 0.40%
Mainly due to the conversion of
self-use real estate into investment
real estate by some subsidiaries
Capital reserve 596997085 3.34% 683219358 3.75% -0.41%
Treasury stock 118066397 0.65% -0.65%
Mainly due to the repurchase of
restricted stocks
Other
Comprehensive
Income
161816819 0.90% 6565864 0.04% 0.86%
Mainly due to the conversion of
self-use real estate into investment
real estate by some subsidiaries
Special Reserve 10269002 0.06% 11102921 0.06%
2. Assets and liabilities measured at fair value
√Applicable □ Not applicable
Unit: RMB
Item
Opening
balance
Gains and losses
from changes in
fair value for the
current period
Cumulative
changes in fair
value included
in equity
Impairment
accrued in
the current
period
Purchase
amount
for this
period
Amount
sold in
this
period
Other
changes
Closing
balance
Investment
real estate
0 179911200 189590349 13582951 383084500
During the report period whether the company’s main asset measurement attributes have changed significantly
□Yes √No
3. Limited asset rights as of the end of the report period
Item Limited amount Limited reason
Monetary funds 1760707 Limited margin transfer
Fix assets 238490675 Limited of Leveraged lease and Mortgage loan
Total 240251382
V. Investment
1. Overall situation
√Applicable □ Not applicable
Investment in the report period (RMB) Investment in the same period of last year ( RMB) Changes
1229511710 770665725 59.54%
2. The major equity investment obtained in the report period
□ Applicable √ Not applicable
3. The major ongoing non-equity investment in the report period
√Applicable □ Not applicable
Unit: RMB 0000
Project
Way of
investment
Fixed
asset
invest
ment
or not
Industry
involved
Amount
invested
in the
report
period
Accumulative
amount
actually
invested by
the end of the
report period
Source of
funds
Progress of project (ongoing
projects)
Expected
return
Accumulative
revenue
achieved by
the end of the
report period
Reasons for
not
achieving
the planned
progress and
the expected
return
Date of
disclosure
(if
applicable)
Index of
disclosure
(if
applicable)
Anhui Fengyang
Lightweigh &
high-permeability
panel for solar
energy equipment
manufacturing
base project
Self-built Yes
Manufacturing
industry
1504 1504
Non-public
issuance of
stocks own
funds and
loans from
financial
institutions
CSG plans to invest in Anhui
Province for the project of
lightweight &high-permeability
panel for solar energy equipment
manufacturing base in 2020-
2022.The project is still under
preparation.
43566
No income
as the
project is in
the
construction
period.March 6
2020
Notice
number:
Anhui Fengyang
quartz sand
project in Anhui
Province
Self-built Yes
Manufacturing
industry
178 178
Own funds
and loans
from
financial
institutions
CSG plans to build a new
production base of low iron (ultra-
white) quartz sand with an annual
output of 600000 tons in
Fengyang Anhui Province and
obtain the raw ore right of quartz
sand.
8238
No income
as the
project is in
the
construction
period.March 6
2020
Notice
number:
Zhaoqing CSG
high-grade
automotive glass
production line
project
Self-built Yes
Manufacturing
industry
340 340
Own funds
and loans
from
financial
institutions
CSG plans to invest in the
construction of high-end
automotive glass production line
in Zhaoqing from 2019 to 2021.The project is still under
construction.
5800
No income
as the
project is in
the
construction
period.
December
13 2019
Notice
number:
Zhaoqing CSG
high-grade energy
conservation glass
production line
project
Self-built Yes
Manufacturing
industry
4774 4774
Own funds
and loans
from
financial
institutions
CSG plans to invest in the
construction of energy-saving
glass production project in
Zhaoqing from 2019 to 2021.
After the production the company
will produce 2.5 million square
meters of energy-saving insulating
glass and 3.5 million square
meters of coated energy-saving
products. The project is still under
7000
No income
as the
project is in
the
construction
period.
December
13 2019
Notice
number:
construction.Qingyuan CSG
ultra-clear
electronic glass
and ultra-clear
special glass
product line
construction
project
Self-built Yes
Manufacturing
industry
52830 61703
Own funds
and loans
from
financial
institutions
CSG plans to build a two-line
ultra-white electronic glass and
ultra-white special glass
production line in Qingyuan CSG
with a daily melting capacity of
700 tons/day. The project uses a
unique one-kiln two-line process
to simultaneously produce 0.33～
1.1mm ultra-white ultra-thin
electronic glass 3～4mm and
15～22mm ultra-white special
glass. The project has been
transferred to fixed assets in
December 2020.
16420
The project
was
transferred
to fixed
assets in
December
2020the
revenue will
be realized
in 2021.
December
22 2018
Notice
number:
Dongguan solar
light and high-
efficiency double-
glass processing
production line
construction
project
Self-built Yes
Manufacturing
industry
524 524
Own funds
and loans
from
financial
institutions
CSG plans to build a lightweight
and high-efficiency double-glass
processing production line in
Dongguan Solar. After the
production line is completed it is
expected to add 1 million square
meters of double-glass production
capacity per month with an
annual production capacity of 12
million square meters. The project
is under construction.
2341
No income
as the
project is in
the
construction
period.
August 24
2020
Notice
number:
Wujiang Float
Lightweight and
High-efficiency
double-glass
processing
production line
construction
project
Self-built Yes
Manufacturing
industry
357 357
Own funds
and loans
from
financial
institutions
CSG plans to build two
lightweight and high-efficiency
double-glass processing
production lines in Wujiang Float.
After the production line is
completed it is expected to add 2
million square meters of double-
glass production capacity per
month with an annual production
capacity of 24 million square
meters. After the project is
completed it will give full play to
the technical advantages of
Wujiang Float double-glass
enhance market competitiveness
and expand the scale of the
Company's benefits. The project
is under construction.
4785
No income
as the
project is in
the
construction
period.
August 24
2020
Notice
number:
Tianjin Energy-
saving Coating
Production Line
Purchase and
Upgrade Project
Self-built Yes
Manufacturing
industry
Own funds
and loans
from
financial
institutions
CSG intends to invest in a new
coating production line in Tianjin
CSG and at the same time
upgrade and transform the
existing coating line B and line C.The project plans to increase the
annual production capacity of
2.76 million square meters
through the purchase of coating
lines and the upgrading and
transformation of existing
production lines.
1640
The project
has no profit
for the time
being.
April 30
2020
Notice
number:
Wujiang
Architectural
Glass newly
building
intelligent
manufacturing
plant
construction
project
Self-built Yes
Manufacturing
industry
76 76
Own funds
and loans
from
financial
institutions
CSG plans to build a full-process
flexible automated production line
covering cutting edging
tempering hollowing and other
processes in Wujiang CSG East
China Architectural Glass Co.
Ltd. using the reserved industrial
land in the factory area. The new
factory building area is 31968
square meters and the new
intelligent manufacturing
production line has an annual
output of LOW- E 1.2 million
square meters of energy-saving
insulating glass. The project is
under construction.
5049
June 24
2020
Notice
number:
Xi'an CSG
Energy-saving
glass production
line project
Self-built Yes
Manufacturing
industry
Own funds
and loans
from
financial
institutions
CSG Group plans to invest in the
establishment of "Xi'an CSG
Energy-saving Glass Co. Ltd."
(tentative name) ("Xi'an CSG
Energy-saving") in Xi'an Shaanxi
Province to build a high-end
energy-saving glass production
line with an annual output of 2.1
million square meters of hollow
energy-saving glass. A 3.5 million
square meter energy-saving glass
production line with coated
energy-saving products.
4222
November
7 2020
Notice
number:
PV power plant
investment
Self-built Yes
Manufacturing
industry
26214
Own funds
and loans
from
CSG plans to invest in the
construction of photovoltaic
power stations in the two years
4344
Part of the
project has
been
January 22
2016
Notice
number:
financial
institutions
from 2016 to 2017 of which the
wholly-owned subsidiary
Shenzhen CSG Photovoltaic
Energy Co. Ltd. will build
200MW by itself and CSG and
Kibing Group will jointly build
140MW. From 2016 to 2020
Shenzhen Photovoltaic has
developed and constructed a total
of 82MW of photovoltaic power
plants including 62MW
distributed photovoltaic power
plants and 20MW centralized
photovoltaic power plants.completed.The
income of
the
completed
project has
been
reflected in
the profit.Hebei Panel Glass
project of
medium-alumina
ultra-thin
electronic glass
Self-built Yes
Manufacturing
industry
1266 Own funds
Plan to establish a production line
for medium-alumina ultra-thin
electronic glass in Hebei Panel
Glass using clean natural gas as
the fuel and produce 0.33mm～
1.1mm medium-alumina ultra-thin
glass with float process. The
project was still in preparation.The project
has no
income at
present
October 29
2014
Notice
number:
Yichang CSG
700MW
crystalline silicon
solar cell project
Self-built Yes
Manufacturing
industry
--
Plan to build a crystalline silicon
solar cell production line with
annual capacity of 700MW. The
project was suspended and further
investment will be based on actual
industry situations.The project
was
suspended.
December
25 2010
Notice
number:
Expanding
500MW solar
module project in
Dongguan
Self-built Yes
Manufacturing
industry
--
Plan to expand the solar module
production line with annual
capacity of 500MW. The project
was suspended and further
investment will be based on actual
industry situations.The project
was
suspended.January 19
2011
Notice
number:
Relocation and
equipment
upgrading of the
solar module
production line in
Dongguan
Self-built Yes
Manufacturing
industry
--
The Company plans to construct a
module workshop in Xianning
Hubei Province of which the final
capacity will be 500MW. By
relocation of some of the module
equipment of its subsidiary
Dongguan CSG PV Technology
Co. Ltd. and purchase of some
new equipment the first stage
capacity of the Xianning
The project
was
suspended.
April 16
2016
Notice
number:
workshop will be 300MW and
afterwards it will be expanded to
500MW as required upon the
market conditions.Solar online self-
cleaning coated
glass project of
Dongguan CSG
Self-built Yes
Manufacturing
industry
--
The Company plans to construct
an online self-cleaning coated
glass line in Dongguan.The project
was
suspended.
April 16
2016
Notice
number:
Malaysia-invested
architectural glass
plant
Self-built Yes
Manufacturing
industry
--
The Company plans to construct
an architectural glass plant in
Negeri Sembilan Malaysia. The
Phase I capacity of the newly-
built plant will be 1200000
square meters insulating glass and
1000000 square meters single
coated glass.The project
was
suspended.
April 16
2016
Notice
number:
Total -- -- -- 60583 96936 -- -- 103405 -- -- --
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
(1)Overall use of raised funds
√Applicable □ Not applicable
Year of
Raising
Method
of
Raising
The total
amount of
funds
raised
The total
amount
of funds
raised in
the
current
period
has been
used
The total
amount
of funds
raised has
been used
Total
amount
of raised
funds
changed
in use
during
the
reporting
period
Accumul
ated total
amount
of raised
funds
with
changed
purposes
Cumulati
ve
proportio
n of total
amount
of raised
funds
with
changed
purposes
The total
amount
of funds
raised has
not been
used
The
purpose
and
destinatio
n of the
raised
funds not
yet used
Amount
of funds
raised
after
being idle
for more
than two
years
2020
Corporate
bonds
199168 199168 199168 0 0 0 0 0 0
Total -- 199168 199168 199168 0 0 0 0 0 0
Description of the overall use of raised funds
Approved by China Securities Regulatory Commission Securities Regulatory Commission [2019] No. 1140the
Company publicly issues corporate bonds with a total face value of no more than RMB 2 billion to qualified investors
and issues them by stages. The first issue shall be completed within 12 months from the date of approval and the
other issues shall be completed within 24 months from the date of approval. On March 24 2020 the Company issued
a three-year corporate bond with a total amount of RMB 2 billion. After deducting the underwriting expenses of RMB
8.32 million the Company received a net raised fund of RMB 1991.68 million as of March 25 2020 which was used
to repay the interest bearing liabilities of the Company and its subsidiaries.
(2)Committed projects of raised funds
√Applicable □ Not applicable
Unit: RMB0’000
Committed
investment projects
and over raised
funds
Whether
the
project
has been
changed
(includin
g some
Total
committ
ed
investme
nt of
raised
funds
Total
investme
nt after
adjustme
nt (1)
Investm
ent
amount
in this
report
period
Accumu
lated
investme
nt
amount
by the
end of
Investm
ent
progress
by the
end of
the
period
The date
when
the
project
is ready
for use
Benefits
achieved
during
the
report
period
Whether
the
expected
benefits
are
achieved
Whether
the
feasibilit
y of the
project
has
changed
changes) the
period
(2)
(3)＝
(2)/(1)
significa
ntly
Commitment to investment projects
Repayment of bank
loans
No 199168 199168 199168 199168 100% N/A N/A N/A No
Subtotal of
committed
investment projects
-- 199168 199168 199168 199168 -- -- N/A -- --
Investment direction of over raised funds
Nil 0 0 0 0 0 0 0 0 0 0
-- 0 0 0 0 0 -- -- -- --
Repayment of bank
loans (if any)
-- 0 0 0 0 0 -- -- -- --
Over-raised funds
invested in subtotal
-- 0 0 0 0 -- -- 0 -- --
Total -- 199168 199168 199168 199168 -- -- 0 -- --
Repayment of bank
loans (if any)
N/A
Description of major
changes in the
feasibility of the
project
N/A
The amount purpose
and use progress of
over-raised funds
N/A
Changes in the
implementation
location of fund-
raising investment
projects
N/A
Adjustments to the
implementation of
fund-raising
investment projects
N/A
Preliminary
investment and
replacement of
raised funds
investment projects
N/A
Temporarily
supplement liquidity
with idle raised
funds
N/A
The amount and
reason of the fund-
raising balance in the
implementation of
the project
N/A
Use and destination
of unused raised
funds
N/A
Problems or other
circumstances in the
use and disclosure of
raised funds
N/A
(3) Changes in raised funds
□ Applicable √ Not applicable
The Company did not have any changes in raised funds during the report period.VI. Sales of major assets and equity
1. Sales of major assets
□ Applicable √ Not applicable
No significant assets were sold during the reporting period.
2. Sales of major equity
□ Applicable √ Not applicable
VII. 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
company
Type Main business
Registered
capital
Total assets Net Assets Operating revenue Operating profit Net profit
Chengdu CSG
Glass Co. Ltd.Subsidiary
Development
manufacture
and sales of
various special
glass
260
million
1058072110 820544285 1202087717 314183483 273591632
Hebei CSG
Glass Co. Ltd.Subsidiary
Manufacture
and sales of
various special
glass
USD
48.06mi
llion
1028524648 722829822 902816892 174494318 150308378
Xianning CSG
Glass Co. Ltd.Subsidiary
Development
and
manufacture
and sales of
various special
glass
235
million
710055430 571431134 755070013 115913323 101120526
Wujiang CSG
Glass Co. Ltd.Subsidiary
Manufacture
and sales of
various special
glass
565.04
million
1628285442 984190804 1735766077 397752740 346183242
Dongguan
CSG Solar
Glass Co. Ltd.Subsidiary
Manufacture
and sales of
Solar-Energy
Glass products
480
million
1658896151 926994040 1304845878 267671870 232302617
Dongguan
CSG
Architectural
Glass Co. Ltd.Subsidiary
Deep
processing of
glass
240
million
1036549477 555442566 1122559074 110960988 97807922
Sichuan CSG
Energy
Conservation
Glass Co. Ltd.Subsidiary
Development
production and
sales of various
special glass
and glass deep
processing
180
million
572317015 326065777 747627677 98110256 85691419
Wujiang CSG
East China
Architectural
Subsidiary
Deep
processing of
glass
320
million
791966532 516253539 878257160 102375030 89722471
Glass Co. Ltd.Shenzhen
Nanbo Display
Technology
Co. Ltd.
Subsidiary
Manufacture
and sales of
display device
products
143
million
1709492383 998036943 621866879 99580797 87177194
Yichang CSG
Polysilicon
Co. Ltd.
Subsidiary
Production and
sales of high-
purity silicon
material
products
1467.98
million
1986147898 62274390 263404280 -691343743 -697065509
Shenzhen CSG
Application
Technology
Co. Ltd.
Subsidiary
R&D design
technical
consultation
and technology
transfer of
glass products
69.12
million
589220032 449484109 28016797 188099353 161337051
Particulars about subsidiaries obtained or disposed in report period
□ Applicable √ Not applicable
Description of the main holding and shareholding companies:
In the second half of 2020 the flat glass industry ushered in a good opportunity. Based on the continuous promotion of
differentiated business strategy the Company made a new breakthrough in the performance especially in the front
layout of double glass field fully reflected the product premium ability and effectively control the superimposed cost.The performance of each subsidiary had achieved new breakthroughs.VIII. Structured main bodies controlled by the Company
□ Applicable √ Not applicable
IX. Outlook of the Company’s future development
1. Tendency of development of the industries the Company involved
Flat glass industry
In recent years under the policy of supply-side reform and other policies the supply and demand structure of the
industry has been optimized and the state of overcapacity has been improved. A series of policies implemented by the
state such as industrial guidance catalogue air pollution treatment elimination of non-standard products and
production control have effectively controlled industrial capacity improved product quality and accelerated the
elimination of backward production capacity. In 2020 despite the impact of the “epidemic” demand in the real estate
sector was slightly weak in the first half of the year but the market recovered significantly in the second half of the year.
At the same time with the expansion of the use of flat glass and the improvement of the production capacity structure
the market supply and demand structure were generally stable.
In 2021 the regulation policy of real estate is expected to be considerably relaxed the data of completed real estate area
is expected to be revised and the market supply and demand environment are expected to be stable. With the continued
implementation of the policy of further capacity reduction and the possible implementation of stricter emission
standards it is expected that the overall market supply and demand relationship will shift to a tight supply situation and
the industry leader will benefit significantly. The improvement of the industry and market structure will benefit the
CSG Group which has been paying attention to environmental protection and has complete environmental protection
facilities.In order to achieve the goal of "CO2 Emissions Peak" by 2030 and "Carbon Neutrality" by 2060 the Country is
accelerating the green low-carbon energy development plan. In the future the national energy structure will change and
the proportion of renewable energy will continue to increase. According to the forecast of the "China Photovoltaic
Industry Association" during the 14th Five-Year Plan period photovoltaics will become the mainstay of new electricity
installations and the domestic photovoltaic industry will usher in a new period of development opportunities. The
increase in photovoltaic installations will increase the demand for photovoltaic glass. Thus driving the rapid
development of the photovoltaic glass industry.
Architectural glass industry
The outbreak of the epidemic in 2020 had a greater impact on the domestic and international economy. CSG actively
responded to the Country’s dual-cycle goal of “Domestic and International” strictly and accurately formulated control
measures based on the development of the epidemic and actively utilized its own brand quality service and market
refined operation capabilities accumulated over the years while vigorously developing equipment automation and
informatization reducing costs and increasing efficiency further consolidating CSG’s market position looking for
opportunities in the crisis and achieved performance growth in 2020 in the continuous fluctuation of the high price of
upstream float glass.In the long run energy-saving glass as the key to building energy conservation has a penetration rate of more than 80%
in developed countries in Europe and the United States while the current utilization rate in China is less than 15%.However the total construction volume in China continues to grow. Every year 16 billion square meters of new
buildings are high energy consuming buildings with an energy utilization rate of only 33%in order to achieve the goal
of " CO2 Emissions Peak " by 2030 and " Carbon Neutrality " by 2060 proposed by the Chinese government it is urgent
to reduce building energy consumption and carbon emissions and vigorously develop green buildings that also
provides a broad market space for building energy-saving glass manufacturing enterprises.
Electronic glass and display industry
With the popularization and development of 5G technology smart home smart car smart factory advanced medical
treatment and other application segments are about to enter a high-speed development stage which provide a broader
market prospect and market space for the electronic glass industry. At the same time it also provides a market
opportunity for leapfrog development for upstream material manufacturers with leading technological innovation
capabilities and healthy operations.In the field of automotive electronics market research organization Auto Data believes that the continuous deepening of
automotive electrification intelligence and interconnection trends indirectly drives the development and growth of the
automotive display market which is widely used in instrument panels central control displays and rear-seat
entertainment In-vehicle displays in automotive interiors such as systems are about to usher in a huge market increase.
Especially when smart cars start to hit the road in 2022 the on-board central control screen as the main human-
computer interaction window is also given more functional requirements. The trend of multi-screen large screen
curved surface and abnormal shape of automobile is obvious and the demand for on-board central control will further
grow. In the next few years on-board central control is expected to continue double-digit growth with an average
annual compound growth rate of more than 10%.The core products such as automotive AG glass automotive
multifunctional cover and automotive touch sensor for automotive central control screens will have broad market
prospects in the future.Solar energy industry
In the past two years subsidies have declined and the generation side has entered the era of grid parity. The power
market has continuously forced the cost of photovoltaic industry to decline. With the rapid development of photovoltaic
technology the production equipment is continuously upgraded and the competition is becoming fiercer. Some
backward production capacity has been eliminated and some new capital has entered. In recent years oligarchs have
emerged in all links of the industrial chain and the industrial concentration has increased and capital has been
concentrated in companies with resource advantages or technological advantages. In order to strengthen the ability to
resist risks various leading enterprises have extended the industrial chain upstream and downstream or formed
alliances with enterprises in other links of the industrial chain. The Company already has the entire industry chain and
has certain anti-risk capabilities. The entire industry chain makes the Company more sensitive and can respond to subtle
changes in the industry in a timely manner. Compared with its peers the Company's competitive advantage is mainly in
the upstream of the industrial chain. The Company entered the polysilicon industry early with large investment mature
technology stable team independent research and development capabilities and intellectual property rights. In the
future the Company will give full play to its own advantages integrate multiple resources focus on the development of
the polysilicon industry and provide high-quality raw materials for the photovoltaic industry.
2. Company Development Strategy
2021 is the 37th anniversary of the establishment of CSG. The Company will follow the development path of "Polishing
three pieces of glass (float glass photovoltaic glass electronic glass) to forge a brand (architectural glass)" firmly
expand and strengthen the main glass business persist in high-quality development adhere to the purpose of "Business
First" continue to enhance the Company's core competitiveness and strengthen strategic support for the development of
the industry occupy the commanding heights of the industry strengthen the advantage of raw material resources
improve technology and R&D strength expand market share and market influence integrate industrial resources
comprehensively improve the credibility and influence of the CSG brand plan the layout of the CSG industry from a
global and macro perspective and build the CSG into a transnational enterprise group with international influence
related to the upstream and downstream of the glass industry.
3. Business Plan of 2021
①Strengthen the ability of group operation and management realize general planning management promote measures
such as supply chain management and lean management exploit its potential and increase efficiency and ensure the
completion of operation construction objective of the Company in 2021;
② Improve R&D capacity build up R&D talent team and maintain the technical innovation advantage of the Company
in the industry;
③ Create open equal fair and initiative enterprise culture and strengthen core cohesion of the Company;
④ Strengthen talent management establish remuneration incentive system related to the performance improve
company incentive mechanism strengthen employee training Select and train reserve cadres and introduce high-quality
talents;
⑤ Rationally plan asset-liability ratio level and ensure financial risk under control;
⑥ Vigorously conduct potential exploiting and efficiency increase activity realize energy saving and consumption
reduction and strengthen competitiveness of the Company;
⑦ Improve information level of the Company and create the world first-class information management platform.
4. Capital Requirements Plan and Sources
The Company's budgeted capital expenditure in 2021 is approximately RMB 4.129 billion mainly for projects such as
lightweight and high-permeability panels for solar energy equipment construction of electronic glass production lines
technology upgrades in the solar energy industry automation of architectural glass workshops and capacity expansion.The main sources of funds are funds raised through non-public offering of stocks self-owned funds and loans from
financial institutions.
5. Risks and Countermeasures
In 2021 in the face of “New Normal” of domestic economic development and the task of building a “Hundred years
CSG” the Company will face the following risks and challenges:
① In 2020 under the efforts of the Board of Directors and all employees daily operation of the Company entered
normal and stable operation. However the Company still faces the risk of insufficient reserves of senior talents for the
long-term development of the Company. To cope with aforesaid risks the Company will take the following measures:
A. Establish an open equal fair and enterprising corporate culture strengthen the internal core cohesion of employees;
B. Establish remuneration incentive system which related to performance and improve employee incentive mechanism;
C. Strengthen internal employee training introduce external high-quality talent and rapidly establish a high-quality
talent team;
D. Establish sustainable talent recruitment cultivation utilization retaining and development management system;
create a future-oriented human resource production development supply system that can support the future
development of CSG.②The glass industry is facing fierce competition of similar products and rising pressure of raw materials and fuels. The
solar photovoltaic industry is facing the risk of product price fluctuations and a shrinking market share for polysilicon
products. The electronic glass and display industry is facing the risk of accelerating the upgrading of material
technology due to the continuous rapid iterative upgrading of the technical requirements of downstream application
scenarios. To cope with aforesaid risks the Company will take the following measures:
A. In the flat glass industry the Company will improve its profitability through continuous lean management and
differentiated operation product structure optimization and other ways; expand the scale of the industry by investing in
new production lines enhance the competitiveness of the industry;
B. In the architectural glass industry the Company will strengthen the development of high-end market and overseas
market actively develop traditional residence market and at the same time maintain the industrial advantageous
position of the Company through market-oriented extension of industrial chain;
C. In the solar photovoltaic industry the shortage of raw materials in the short and medium term in the future may lead
to an increase in production costs and even affect production. As the Company entered the industry early and the
proportion of old equipment is relatively high the Company will face the impact of advanced production equipment in
its peers after the release of a large number of new capacity in the future resulting in a decline in its profitability. The
Company will continue to maintain continuous investment in research and development accelerate the development
and introduction of new technologies and appropriately upgrade equipment and replace them with new ones to
maintain corporate competitiveness.
D. In electronic glass and display devices industry the Company will strengthen research and development of new
technology and new product maintain its technical leading advantage in the industry and rapidly develop terminal
market and improve industrial profitability.③ The market price of glass and solar energy PV industrial has fluctuated greatly. At the same time the prices of
upstream raw materials have fluctuated and the current rising labor costs have brought risks to the Company's
operations.To cope with risk the Company will take the following measures:
A. Vigorously exploit potential and increase efficiency and effectively implement energy saving and consumption
reduction;
B. Focus on the market change and lock the price of bulk commodity at proper time;
C. Utilize bulk purchase advantage to reduce purchase cost;
D. Improve automatic production level raise labor productivity.
④ Risk of fluctuation of foreign exchange rate: At present nearly 10.70% of the sales revenue of the Company is from
overseas in the future the Company will further develop overseas business and 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 time and use safe and effective risk evading instrument and product to relatively lock exchange rate and reduce the
risk caused by fluctuation of exchange rate.X. Reception of research communication and interview
1. Particulars about research communication and interview in the report period
√Applicable □ Not applicable
Reception time
Reception
location
Reception
method
Reception
object type
Reception object
The main content
of the discussion
and the
information
provided
Index of the basic
situation of the
survey
June 12 2020
CSG
Headquarters
Field
research
institution
Dongfang securities
Guohai Securities
Great Wall
Securities Jingshun
Great Wall
RONGTONG fund
China CITIC
construction
investment securities
Bank of China
International
Securities
The Company
communicated
with the
investors on the
company's
strategic
development
direction raised
investment
projects capital
expenditure
electronic glass
photovoltaic
glass etc.; no
information was
provided.
For details please
refer to the record
of investor
relations activities
disclosed on
Juchao information
website on June
15 2020.
November 9
2020
CSG
Headquarters
Field
research
institution
Western securities
Xingzheng Global
Fund Ruijun asset
Weide investment
Hengtai securities
southern fund
Shenzhen haifuling
capital Shenzhen
qianhaisheng Beile
investment foxtail
pine asset shenuo
investment Yixing
investment
GuotaiJunan Great
Wall Fund Dayan
capital Hua'an
securities Liyan
investment
The Company
communicated
with the
investors on the
company's
strategic
development
direction raised
investment
projects
production
capacity of
various
businesses new
electronic glass
products etc.; no
information was
provided.
For details please
refer to the record
of investor
relations activities
disclosed on
Juchao information
website on
November 11
2020.
Reception times 2
Number of institutions received 23
Number of individuals received 0
Number of other objects received 0
Whether to disclose disclose or divulge
undisclosed material information
No
Section V. Important Events
I. Profit distribution plan of common shares and capitalization of capital reserve plan of the
Company
Implementation or adjustment of profit distribution plan in the report period cash dividend plan and converting capital
reserve into share capital in particular
√ Applicable □Not applicable
The profit distribution plan for 2019 was approved by Annual General Shareholders’ Meeting of 2019 held on 21 May
2020 which distributed distributing cash dividend of RMB 1 (tax included) for every 10 shares to all shareholders.
Notice of the distribution was published on China Securities Journal Securities Times Shanghai Securities News and
Hong Kong Commercial Daily on 20 June 2020 and the profit has 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
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)
Yes
Statement on profit distribution plan and capitalization of capital reserve plan of the Company in nearly three years
(including the report period)
Statement on profit distribution preplan in 2020：Based on the current total share capital of 3070692107 shares
distributing cash dividend of RMB 1(tax included) for every 10 shares to all shareholders.Statement on profit distribution plan in 2019：Based on the current total share capital of 3106915005 shares
distributing cash dividend of RMB 0.7 (tax included) for every 10shares to all shareholders.Statement on profit distribution plan and capitalization of capital reserve plan of the Company in 2018: based on
2825632877 shares of the total share capital while dividends will be distributed distributing cash dividend of RMB
0.5 (tax included) for every 10 shares to all shareholders. Meanwhile the Company will transfer capital reserve into
capital with 1 share for every 10 shares to all shareholders based on 2825632877 shares of the total share capital.
Cash dividend in latest three years (including the report period)
Unit: RMB
Year
for
bonus
shares
Amount for
cash
dividend (tax
included)
Net profit
attributable to
shareholders of
listed company
in consolidation
statement for
bonus year
Ratio in net profit
attributable to
shareholders of
listed company
contained in
consolidation
statement
Cash
dividend
by other
ways
(such as
repurchas
e shares)
Proportion for
cash dividends
in other ways to
the net profit
attributable to
ordinary
shareholders of
listed companies
in the
consolidated
statements
Amount for
cash
dividend
(including
other ways)
Net profit
attributable to
shareholders of
listed company in
consolidation
statement for
bonus year
(including other
ways)
2020 307069211 779325592 39.40% 0 0% 307069211 39.40%
2019 214948447 536430818 40.07% 0 0% 214948447 40.07%
2018 141281644 452965935 31.19% 0 0% 141281644 31.19%
Note:
The actual amount of the cash dividend distributed and capital reserve transferred will be determined according to the
total share capital on the capital reserved registration date for profit distribution implementation.The Company gains profits in the report period and the retained profit of parent company is positive but no plan of cash
dividend proposed
□ Applicable √ Not applicable
II. 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) 1
Shares added for every 10-share base (Share) 0
Equity base for distribution preplan (share) 3070692107
Total amount distribution in cash (RMB) (tax included) 307069211
Cash dividend amount in other ways (such as repurchasing shares) (RMB) 0
Total cash dividends (including other methods) (RMB) 307069211
Profit available for distribution (RMB) 1100790694
Cash distributing accounted for the proportion of the total amount of profit
distribution (including other methods)
100%
Particular about cash dividend in the period
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 preplan or share conversion from capital public reserve
According to the financial report audited by Asia Pacific (Group) CPAs (special general partnership) the net profit
attributable to equity holders of the Company in consolidated statement was RMB 779325592 in 2020 and the net
profit of the parent company’s financial statements was RMB 906971361.Since cash dividend distribution bases on the distributable profit of parent company the Company took 10% of the net
profit as stationary surplus reserve which was RMB 90697136 based on the net profit RMB 906971361 of parent
company statement 2020. The allocation for Shareholders in 2020 was RMB 1100790694.The deliberated and approved plan of profit distribution in the Board Meeting is distributing cash dividend of RMB 1
yuan (tax included) for every 10 shares to all shareholders based on 3070692107 shares of the total currently share
capital. and the total amount distribution is RMB307069211 (including tax).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.The profit distribution plan complies with the "Company Law" "Listed Company Supervision Guidelines No. 3-Cash
Dividends for Listed Companies" the "Articles of Association" and the company's shareholder return plan and other
relevant regulations. It is in line with the company's actual situation and future development plans. Taking into
account the interests of shareholders.The above profit distribution proposal must be submitted to the 2020 Annual General Meeting of shareholders.III. 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 hadn’t been completed
execution by the end of the report period
√Applicable □ Not applicable
Commitments Promisee
Type of
commitments
Content of commitments
Commitment
date
Commitm
ent term
Implementat
ion
Commitments
for
Share Merger
Reform
The original non-
tradable shareholder
Shenzhen
International
Holdings (SZ)
Limited and Xin
Tong Chan
Industrial
Development
(Shenzhen) Co.Ltd.
Commitment
of share
reduction
The Company has
implemented share
merger reform in May
2006. Till June 2009 the
share of the original non-
tradable shareholders
which holding over 5%
total shares of the
Company had all
released. Therein the
original non-tradable
shareholder Shenzhen
International Holdings
(SZ) Limited and Xin
Tong Chan Industrial
Development (Shenzhen)
Co. Ltd. both are
wholly-funded
subsidiaries to Shenzhen
International Holdings
Limited (hereinafter
Shenzhen International
for short) listed in Hong
Kong united stock
exchange main board.Shenzhen International
made commitment that it
would strictly carry out
related regulations of
Securities Law
Administration of the
Takeover of Listed
Companies Procedures
and Guiding Opinions on
the Listed Companies’
Transfer of Original
Shares Released from
Trading Restrictions
issued by CSRC during
implementing share
decreasingly-held plan
and take information
disclosure responsibility
timely.
2006-5-22 N/A
By the end
of the report
period the
above
shareholders
of the
Company
had strictly
carried out
their
promises.
Commitments
in report of
acquisition or
equity change
Foresea Life
Insurance Co. Ltd
Shenzhen
Jushenghua Co.Ltd. and Chengtai
Group Co. Ltd.
Commitment
of horizontal
competition
affiliate
Transaction
and
capital
occupation
Foresea Life Insurance
Co. Ltd. Shenzhen
Jushenghua Co. Ltd. and
Chengtai Group Co. Ltd.
issued detailed report of
equity change on 29 June
2015 in which they
undertook to keep
independent from CSG in
aspects of personnel
assets finance
organization set-up and
business as long as
Foresea Life Insurance
2015-6-29
During the
period
when
Foresea
Life
remains
the largest
shareholde
r of the
Company
By the end
of the report
period the
above
shareholders
of the
Company
had strictly
carried out
their
promises.
remained the largest
shareholder of CSG.Meanwhile they made
commitment on
regularizing related
transaction and avoiding
industry competition.
Commitments
in assets
reorganization
Not applicable
Commitments
in initial
public offering
or re-financing
Not applicable
Equity
incentive
commitment
The listed company
CSG has promised not to
provide loans and other
forms of financial
assistance for restricted
stocks for the incentive
targets under this plan
including providing
guarantees for their
loans.
2017-10-10
During the
implement
ation of
the equity
incentive
plan
The
commitment
is in normal
performance.Other
commitments
for medium
and small
shareholders
Not applicable
Completed on
time(Yes/No)
Yes
If the
commitments
is not fulfilled
on time
explain the
reasons and
the next work
plan
Not applicable
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.
2. If there are assets or projects of the Company which has profit forecast and the report period is still in
forecasting period the Company should explain reasons why they reach the original profit forecast
□ Applicable √ Not applicable
IV. Particulars about non-operating fund of listed company which is occupied by controlling
shareholder and its affiliated enterprises
□ Applicable √ Not applicable
There was no non-operating fund of listed company which is occupied by controlling shareholder and its affiliated
enterprises in the report period.
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. Particulars about the changes in aspects of accounting policy accounting estimate and
calculation method compared with the financial report of last year
√Applicable □ Not applicable
The content and reason of accounting policy change Approval procedures
The Ministry of Finance issued the new "Accounting Standards for Business Enterprises
No. 14-Revenue" (CK [2017] No. 22)on July 5 2017. According to the provisions the
enterprises listed at the same time at home and abroad and those listed abroad and prepared
financial statements by adopting international financial reporting standards or enterprise
accounting standards shall be implemented as of January 1 2018; other domestic listed
enterprises shall be implemented as of January 1 2020. The implementation of the new
income standard is not expected to have a significant impact on the Company's operating
results nor will it lead to a significant change in the Company's income recognition
method nor will it have a significant impact on the financial statements.The 11th meeting of the 8th
Board of Directors held on
April 28 2020 deliberated
and passed the proposal on
accounting policy changes.VII. Description of major accounting errors within report period that need retrospective
restatement
□ Applicable √ Not applicable
There were no major accounting errors within report period that need retrospective restatement.VIII. Description of changes in consolidation statement’s scope compared with the financial
report of last year
√Applicable □ Not applicable
On January 7 2020 the Group set up a subsidiary CSG (Thailand) Co. Ltd. As of December 31 2020 the Group has
not actually contributed capital and the Group holds 100% of its shares.
On February 5 2020 the Group set up a subsidiary Anhui CSG New Energy Materials Technology Co. Ltd
(Abbreviated as "Anhui New Energy Company"). As of December 31 2020 the Group has invested RMB 20 million.
The Group owns 100% of its equity.
On February 8 2020 the Group set up a subsidiary Anhui CSG New Quartz Material Co. Ltd (Abbreviated as "Anhui
Quartz Company"). As of December 31 2020 the Group has invested RMB 3 million. The Group owns 100% of its
equity.
On February 10 2020 the Group set up a subsidiary Shenzhen CSG Medical Technology Co. Ltd (Abbreviated as
"Shenzhen CSG Medical Company"). As of December 31 2020 the Group has invested RMB 20 million. The Group
owns 100% of its equity.
On August 31 2020 the Group set up a subsidiary CSG (Suzhou) Corporate Headquarters Management Co. Ltd. As
of December 31 2020 the Group has not actually contributed capital and the Group owns 100% of its equity.
IX. Engaging and dismissing of CPA firm
CPA firm engaged
Name of domestic CPA firm Asia Pacific (Group) CPAs (special general partnership)
Remuneration for domestic CPA firm (RMB 0000) 300
Continuous life of auditing service for domestic CPA firm 3
Name of domestic CPA Zhou Xianhong Sun Weijie
Continuous life of auditing service for domestic CPA Zhou Xianhong(3years) Sun Weijie(1year)
Whether changed accounting firms in this period or not
□ Yes √No
Whether changed the accounting firm during the audit period or not
□ Yes √No
Appointment of internal control auditing accounting firm financial consultant or sponsor
√Applicable □ Not applicable
Asia Pacific (Group) CPAs (special general partnership) was engaged as audit institute of internal control for the
Company in the report period and contracted charges was RMB 0.30 million (not including traveling and
accommodation expenses).X. Particular about the Company suspended from the stock market listing and delisting after
the disclosure of the annual report
□ Applicable √ Not applicable
XI. Issues related to bankruptcy and reorganization
□ Applicable √ Not applicable
XII. Significant lawsuits and arbitrations
□ Applicable √ Not applicable
XIII. Penalty and rectification
□ Applicable √ Not applicable
XIV. Integrity of the Company and its controlling shareholders and actual controllers
□ Applicable √ Not applicable
XV. Implementation of the Company’s stock incentive plan employee stock ownership plan
or other employee incentives
√Applicable □ Not applicable
On Oct. 10 2017 the 3
rd
Meeting of the 8
th
Board of Directors of the Company deliberated and approved 2017
Restricted A- shares Incentive Plan of CSG Holding Co. Ltd (Draft )and its summary the Management Method of the
Implementation and Review of 2017 Restricted A-shares Incentive Plan of CSG Holding Co. Ltd and the Resolution on
Applying the General Meeting of Shareholders to Authorize the Board of Directors to Deal With the Related Matters on
the Company’s 2017 Restricted A-shares Incentive Plan. The above contents are detailed in the Announcement of the
Resolution on the Third Meeting of the Eighth Session of the Board of Directors published on Juchao information
website (www.cninfo.com.cn) on Oct.11 2017. (Announcement No.: 2017-063). The Company’s independent directors
issued independent opinions on the issues involved with restricted A- shares incentive plan.On Oct. 26 2017 the Company convened the 5
th
Extraordinary General Meeting in 2017 which deliberated and
approved the above three proposals. The Resolution on Adjusting the Object and Quantity Granted of 2017 Restricted
A-share Incentive Plan and the Resolution on Firstly Granted Restricted Shares to the Object of 2017 Restricted A-share
were deliberated and approved on the extraordinary meeting of the eighth session board of directors convened on Dec.
11
th
2017. It determined to grant 97511654 restricted shares to 454 objects on Dec. 11 2017 with price at
RMB4.28/share. The reserved restricted shares were 17046869 shares.
The granting of shares was completed on Dec. 25 2017 and the specific content was detailed in the Announcement on
Completing the First Granting of 2017 Restricted A-shares disclosed on Juchao information website
(www.cninfo.com.cn) on Dec. 22 2017 (Announcement No.:2017-079).On July 20 2018 the Company held the extraordinary meeting of the 8th Board of Directors and the extraordinary
meeting of the 8th Board of Supervisors and reviewed and approved the Proposal on Repurchase and Restricting
Partially Restricted Stocks of Restricted Stock Incentive Plan considered and agreed to repurchase and cancel the total
of 3319057 shares of 15 incentive targets of all that have been granted to them who have not been eligible with stock
still under restriction and the independent directors of the Company issued a consent. And on August 6 2018 the
second extraordinary shareholders meeting in 2018 was approved. As of September 10 2018 the Company has
completed the cancellation procedures for the above-mentioned restricted stocks at China Securities Depository and
Clearing Co. Ltd. Shenzhen Branch. The total number of shares of the Company was changed from 2856769678
shares to 2853450621 shares.On September 13 2018 the Company convened an extraordinary meeting of the 8th Board of Directors and an ad hoc
meeting of the 8th Board of Supervisors and reviewed and approved the Proposal on Granting Restricted Stocks to the
2017 Restricted Stock Incentive Plan for Incentive Objects. The grant date for the second reserved restricted stock was
September 13 2018 and the Company agreed to grant a total of 9826580 reserved restricted stocks to 75 incentive
targets at a price of 3.68 yuan/share. The independent directors have issued independent opinions on the above proposal
and the Company's supervisory board has once again verified the list of incentive targets on the grant date. The shares
granted have been registered in the Shenzhen Branch of China Registration and Clearing Corporation and listed on
September 28 2018. The total number of shares of the Company has changed from 2853450621 shares to
2863277201 shares.
On December 12 2018 the Company held the extraordinary meeting of the 8th Board of Directors and the
extraordinary meeting of the 8th Board of Supervisors and reviewed and approved the Proposal on Repurchase and
Restricting Partially Restricted Stocks of Restricted Stock Incentive Plan and reviewed and agreed to repurchase and
write-off of a total of 436719 shares of all restricted shares granted but not yet unrestricted to sale by 8 unqualified
original incentive subjects The total number of all restricted stocks that were not eligible for the original incentives but
not yet released was limited to 436719 shares and was approved by the third extraordinary general meeting of 2018 on
December 28 2018. As of June 18 2019 the Company has completed the cancellation procedures of the above-
mentioned restricted stock at the Shenzhen branch of China securities registration and clearing co. Ltd. For details
please refer to the notice on completion of cancellation of partial restricted stock repurchase (notice No.: 2019-040)
published on Juchao information website (www.cninfo.com.cn) on June 19 2019.
On December 12 2018 the Company held the extraordinary meeting of the 8th Board of Directors and the 8th
Extraordinary Meeting of the Board of Supervisors and reviewed and approved the first release of the Company's 2017
A-share restricted stock incentive plan for the first time. In addition to the fact that the eight incentive targets have not
been able to lift the restrictions on sales the total number of incentives for the conditions for lifting the restrictions is
431 and the number of restricted stocks that can be unlocked is 43353050 shares accounting for the current Company.
1.51% of the total share capital. The board of supervisors independent directors and law firms issued separate opinions.
The date of the restricted stock release date is December 21 2018.
On April 16 2019 the Company held the 8th meeting of the 8th board of directors and the 8th meeting of the 8th boardof supervisors. The meetings approved the “Proposal concerning the repurchase and cancellation of some restrictedshares from the ‘incentive plan’ of restricted shares” and the “Proposal concerning the repurchase and cancellation ofrestricted shares failing to meet the second-term unlocking condition”. The meetings approved to repurchase and cancel
a total of 3473329 restricted shares which have already been granted to and held by 14 recipients who are unqualified
for the “incentive plan” and repurchase and cancel a total of 33734276 restricted shares failing to meet the second-
term unlocking condition from 483 “incentive” recipients. Independent directors agreed with this and it was approved
by the annual general meeting of shareholders on May 9 2019. By June 18 2019 the cancellations procedure of above
restricted shares has been accomplished. For details please refer to the notice on completion of cancellation of partial
restricted stock repurchase (notice No.: 2019-040) published on Juchao information website (www.cninfo.com.cn) on
June 19 2019.On September 16 2019 the Company convened an extraordinary meeting of the 8th Board of Directors and anextraordinary meeting of the 8th Board of Supervisors and reviewed and approved the “Proposal on Repurchase and
Cancelation part of Restricted Stocks of Restricted Stock Incentive Plan” considered and agreed to repurchase and
cancel the total of 1281158 shares of 18 incentive targets of all restricted stocks that have been granted to them who
have not been eligible with stock still under restriction. It was approved by the fourth extraordinary general meeting of
shareholders in 2019 held on October 10 2019. By June 16 2020 the cancellations procedure of above restricted
shares has been accomplished. For details please refer to the notice on completion of cancellation of partial restricted
stock repurchase (notice No.: 2020-049) published on Juchao information website (www.cninfo.com.cn) on June 17
2020.
On September 16 2019 the Company convened an extraordinary meeting of the 8th Board of Directors and an
extraordinary meeting of the 8th Board of Supervisors and reviewed and approved the "proposal on the achievement of
condition for unlock the first restriction period stock of the 2017 a-share restricted stock incentive plan of the
Company". Except the 3 incentive objects who have left the Company and are no longer qualified for unlocking the
total number of incentive objects who meet the condition for unlocking is 71 and the number of restricted shares that
can be unlocked is 3909350 accounting for 0.13% of the total share capital of the Company at present. The board of
supervisors the independent directors and the law firm have expressed their express consents. The unlock date/ listing
date of these restricted stock is September 25 2019.
On April 28 2020 the Company held the 11th meeting of the 8th board of directors and the 11th meeting of the 8thboard of supervisors. The meetings approved the “Proposal concerning the repurchase and cancellation of somerestricted shares from the ‘incentive plan’ of restricted shares” and the “Proposal concerning the repurchase andcancellation of restricted shares failing to meet the third-term unlocking condition”. The meetings approved to
repurchase and cancel a total of 909936 restricted shares which have already been granted to and held by 14 recipients
who are unqualified for the “incentive plan” and repurchase and cancel a total of 35312962 restricted shares failing to
meet the third-term unlocking condition from 451 “incentive” recipients. Independent directors agreed with this and it
was approved by the annual general meeting of shareholders 2019 on May 21 2020. By June 16 2020 the
cancellations procedure of above restricted shares has been accomplished. For details please refer to the notice on
completion of cancellation of partial restricted stock repurchase (notice No.: 2020-049) published on Juchao
information website (www.cninfo.com.cn) on June 17 2020.XVI. Major related transaction
1. Related transaction with routine operation concerned
□ Applicable √ Not applicable
There was no related transaction with routine operation concerned in the report period.
2. Related transaction with acquisition of assets or equity sales of assets or equity concerned
□ Applicable √ Not applicable
There was no related transaction with acquisition of assets or equity sales of assets or equity concerned in the report
period.
3. Related transaction with jointly external investment concerned
□ Applicable √ Not applicable
There was no related transaction with jointly external investment concerned in the report period.
4. Credits and liabilities with related parties
□ Applicable √ Not applicable
There were no credits and liabilities with related parties in the report period.
5. Other major related transaction
□ Applicable √ Not applicable
There was no other major related transaction in the report period.XVII. Significant contracts and their implementation
1. Trusteeship contracting and leasing
(1) Trusteeship
□ Applicable √ Not applicable
No trusteeship for the Company in the report period.
(2) Contract
□ Applicable √ Not applicable
No contract for the Company in the report period.
(3) Leasing
□ Applicable √ Not applicable
No leasing for the Company in the report period.
2. Major guarantees
√Applicable □ Not applicable
(1) Guarantee
Unit: RMB 0000
Particulars about the external guarantee of the Company (Barring the guarantee for subsidiaries)
Name of the Company
guaranteed
Related
Announcemen
t disclosure
date
Guarante
e limit
Actual date of
happening (Date of
signing agreement)
Actual
guarantee
limit
Guarantee type
Guarantee
term
Complete
implementati
on or not
Guarantee
for related
party (Yes or
no)
Guarantee of the Company for the subsidiaries
Name of the Company
guaranteed
Related
Announcemen
t disclosure
date
Guarante
e limit
Actual date of
happening (Date of
signing agreement)
Actual
guarantee
limit
Guarantee type
Guarantee
term
Complete
implementati
on or not
Guarantee
for related
party (Yes or
no)
Xianning CSG Photovoltaic
Glass Co. Ltd.
2016-8-16 30000 2017-1-3 9330
Joint liability
guarantee
3 years No No
Xianning CSG Photovoltaic
Glass Co. Ltd.
2020-12-5 3000
Joint liability
guarantee
1 year No No
Xianning CSG Photovoltaic
Glass Co. Ltd.
2020-12-19 5000
Joint liability
guarantee
1 year No No
Xianning CSG Energy-
Saving Glass Co. Ltd.
2020-4-30 3000 2020-7-10 2000
Joint liability
guarantee
1 year No No
Xianning CSG Energy-
Saving Glass Co. Ltd.
2020-5-23 50000 2020-10-21 1500
Joint liability
guarantee
1 year No No
Yichang Nanbo
Photoelectric Glass Co.Ltd.
2020-5-23 2000 2020-5-29 1200
Joint liability
guarantee
1year No No
Dongguan CSG PV-tech
Co. Ltd.
2020-3-6 5500 2020-4-14 2000
Joint liability
guarantee
1 year No No
Dongguan CSG PV-tech
Co. Ltd.
2019-8-23 30500 2019-12-17 1520
Joint liability
guarantee
2 years No No
Xianning CSG Glass Co.Ltd.
2020-6-24 4000
Joint liability
guarantee
1 year No No
Hebei Panel
Glass Co. Ltd.
2020-2-25 3000
Joint liability
guarantee
1year No No
Hebei CSG Glass Co. Ltd. 2020-2-25 5000
Joint liability
guarantee
1 year No No
Qingyuan CSG New
Energy-Saving Materials
Co.Ltd.
2019-3-19 20000 2019-3-19 12698
Joint liability
guarantee
3 years Yes No
Hebei CSG Glass Co. Ltd. 2017-10-10 20000 2017-10-30 7252
Joint liability
guarantee
3 years Yes No
Dongguan CSG
Architectural Glass Co.
Ltd.
2019-12-20 18000 2020-3-11 8100
Joint liability
guarantee
1 year Yes No
Wujiang CSG Glass Co.Ltd.
2019-10-28 6000 2019-10-28
Joint liability
guarantee
1 year Yes No
Yichang CSG Display Co.Ltd.
2019-2-26 2432 2019-6-25 300
Joint liability
guarantee
1 year Yes No
Xianning CSG Glass Co. 2017-9-16 25000 2017-9-18 6488 Joint liability 3 years Yes No
Ltd. guarantee
Wujiang CSG Glass Co.Ltd.
2017-8-28 30000 2017-9-13 10261
Joint liability
guarantee
3 years Yes No
Xianning CSG Photovoltaic
Glass Co. Ltd.
2017-8-1 20000 2017-9-7 8100
Joint liability
guarantee
3 years Yes No
Zhanjiang CSG New
Energy Co. Ltd.
2017-7-31 9000 2017-9-26 4781
Joint liability
guarantee
3 years Yes No
Yichang Nanbo
Photoelectric Glass Co.Ltd.
2017-5-22 5472 2017-5-26 1824
Joint liability
guarantee
3 years Yes No
Dongguan CSG PV-tech
Co. Ltd.
2017-11-27 20000 2017-12-20 7252
Joint liability
guarantee
3years Yes No
Chengdu CSG Glass Co.
Ltd.
2020-8-24 5000 2020-8-24 4500
Joint liability
guarantee
1 year No No
Chengdu CSG Glass Co.
Ltd.
2020-2-25 8000 2020-3-4 980
Joint liability
guarantee
1 year No No
Sichuan CSG Energy
Conservation Glass Co.
Ltd.
2020-8-24 5000 2020-8-24 4500
Joint liability
guarantee
1 year No No
Wujiang CSG Glass Co.Ltd.
2019-9-18 10000 2019-9-20 1780
Joint liability
guarantee
1 year No No
Wujiang CSG Glass Co.Ltd.
2020-12-5 10000 2020-12-9 866
Joint liability
guarantee
1 year No No
Wujiang CSG Glass Co.Ltd.
2020-2-25 8000 2020-3-4 1000
Joint liability
guarantee
1 year No No
Wujiang CSG Glass Co.Ltd.
2019-12-10 5000 2020-4-30
Joint liability
guarantee
1 year No No
Wujiang CSG Glass Co.Ltd.
2020-2-25 10000 2020-5-11 1000
Joint liability
guarantee
1 year No No
Dongguan CSG
Architectural Glass Co.
Ltd.
2019-4-17 6000 2019-8-29 1000
Joint liability
guarantee
1 year Yes No
Dongguan CSG
Architectural Glass Co.
Ltd.
2020-6-24 6000 2020-8-18 2000
Joint liability
guarantee
1 year No No
Dongguan CSG
Architectural Glass Co.
Ltd.
2020-9-22 20000 2020-12-25
Joint liability
guarantee
1year No No
Dongguan CSG
Architectural Glass Co.
Ltd.
2020-2-25 10000 2020-3-26
Joint liability
guarantee
1 year No No
Wujiang CSG East China
Architectural Glass Co.
Ltd.
2020-12-5 10000 2020-12-9
Joint liability
guarantee
1 year No No
Wujiang CSG East China
Architectural Glass Co.
Ltd.
2019-9-18 10000 2019-9-20 3648
Joint liability
guarantee
1 year No No
Wujiang CSG East China
Architectural Glass Co.
Ltd.
2020-9-22 5000
Joint liability
guarantee
1 year Yes No
Dongguan CSG Solar Glass
Co. Ltd.
2019-10-28 10000 2019-12-17 2625
Joint liability
guarantee
2 years No No
Dongguan CSG Solar Glass
Co. Ltd.
2020-2-25 8000 2020-3-4 730
Joint liability
guarantee
1 year No No
Dongguan CSG Solar Glass
Co. Ltd.
2020-2-25 7288 2020-12-1
Joint liability
guarantee
1 year No No
Dongguan CSG Solar Glass
Co. Ltd.
2020-9-22 4500 2020-11-11
Joint liability
guarantee
3 years No No
Dongguan CSG Solar Glass
Co. Ltd.
2020-9-22 20000 2020-12-25
Joint liability
guarantee
1 year No No
Dongguan CSG Solar Glass
Co. Ltd.
2020-4-30 5000 2020-5-18
Joint liability
guarantee
1 year No No
Qingyuan CSG New
Energy-Saving Materials
Co.Ltd.
2019-12-10 4330 2019-12-10 1425
Joint liability
guarantee
1 year No No
Qingyuan CSG New
Energy-Saving Materials
Co.Ltd.
2019-12-10 5000 2020-4-26
Joint liability
guarantee
1 year No No
Qingyuan CSG New
Energy-Saving Materials
Co.Ltd.
2019-12-10 50000 2020-4-26 14449
Joint liability
guarantee
5 years No No
Yichang CSG Display Co.Ltd.
2020-5-23 5000 2020-6-22 51
Joint liability
guarantee
1 year No No
Yichang CSG Display Co. 2020-5-23 5000 2020-5-29 3000 Joint liability 1 year No No
Ltd. guarantee
Tianjin CSG Energy-Saving
Glass Co. Ltd.
2019-12-24 3000 2020-4-9 30
Joint liability
guarantee
1 year No No
Tianjin CSG Energy-Saving
Glass Co. Ltd.
2020-4-30 5000 2020-6-30 2150
Joint liability
guarantee
1 year No No
ZhaoqingCSG Energy-
Saving GlassCo. Ltd.
2020-9-22 34000 2020-9-25 4362
Joint liability
guarantee
5 years No No
China Southern Glass
(Hong Kong) Limited
2020-2-25
48000
2020-4-4 6312
Joint liability
guarantee
1 year No No
Dongguan CSG
Architectural Glass Co.
Ltd.
2020-6-24 2020-8-20 326
Joint liability
guarantee
1 year No No
Dongguan CSG Solar Glass
Co. Ltd.
2020-6-24 2020-8-20
Joint liability
guarantee
1 year No No
Dongguan CSG PV-tech
Co. Ltd.
2020-6-24 2020-8-20 970
Joint liability
guarantee
1 year No No
Qingyuan CSG New
Energy-Saving Materials
Co.Ltd.
2020-6-24 2020-8-20 803
Joint liability
guarantee
1 year No No
Hebei Panel
Glass Co. Ltd.
2020-6-24 2020-8-20
Joint liability
guarantee
1 year No No
Chengdu CSG Glass
Co.Ltd.
2020-6-24 2020-8-20
Joint liability
guarantee
1 year No No
Sichuan CSG Energy
Conservation Glass Co.
Ltd.
2020-6-24 2020-8-20 610
Joint liability
guarantee
1 year No No
Xianning CSG Glass Co.Ltd.
2020-6-24 2020-8-20
Joint liability
guarantee
1 year No No
Xianning CSG Energy-
Saving Glass Co. Ltd.
2020-6-24 2020-8-20 130
Joint liability
guarantee
1 year No No
Wujiang CSG East China
Architectural Glass Co.
Ltd.
2020-6-24 2020-8-20 543
Joint liability
guarantee
1 year No No
Tianjin CSG Energy-Saving
Glass Co. Ltd.
2020-6-24 2020-8-20 2971
Joint liability
guarantee
1 year No No
Xianning CSG Photovoltaic
Glass Co. Ltd.
2020-2-25 2020-6-24
Joint liability
guarantee
1 year No No
Dongguan CSG Jingyu New
Material Co. Ltd.
2020-2-25
Joint liability
guarantee
1 year No No
Total amount of approving guarantee for
subsidiaries in report period (B1)
245436
Total amount of actual
occurred guarantee for
subsidiaries in report period
(B2)
67083
Total amount of approved guarantee for
subsidiaries at the end of reporting period
(B3)
472118
Total balance of actual
guarantee for subsidiaries at
the end of reporting period
(B4)
79311
Total amount of guarantee of the Company( total of three abovementioned guarantee)
Total amount of approving guarantee in
report period (A1+B1+C1)
245436
Total amount of actual
occurred guarantee in report
period (A2+B2+C2)
67083
Total amount of approved guarantee at the
end of report period (A3+B3+C3)
472118
Total balance of actual
guarantee at the end of report
period (A4+B4+C4)
79311
The proportion of the total amount of actual guarantee in the net assets of
the Company(that is A4+ B4+C4)
7.77%
Including:
Total amount of the aforesaid three guarantees(D+E+F) 0
Amount of guarantee for shareholders actual controller and its related
parties(D)
0
The debts guarantee amount provided for the guaranteed parties whose
assets-liability ratio exceed 70% directly or indirectly(E)
0
Proportion of total amount of guarantee in net assets of the Company
exceed 50%(F)
0
Total amount of the aforesaid three guarantees(D+E+F) 0
Explanations on possibly bearing joint and several liquidating
responsibilities for undue guarantees (if any)
N/A
Explanations on external guarantee against regulated procedures(if any） N/A
Explanations on Guarantee of the Company for the subsidiaries
The total Guarantee limit was RMB 2454.36million in the report
period. The Company and its wholly-owned subsidiary Yichang CSG
Polysilicon Co. Ltd. jointly guaranteed for Dongguan CSG PV-tech
Co. Ltd. The Company has carried out the bill pool business of 400
million. The Company and its holding subsidiaries can adopt various
guarantee methods such as pledge of maximum amount general
pledge pledge of certificates of deposit pledge of bills pledge of
security deposit and so on for the establishment and use of the bill
pool.
(2) Illegal external guarantee
□ Applicable √ Not applicable
No Illegal external guarantee in the report period.
3. Entrust others to manage cash assets
(1)Entrusted Financing
□Applicable √Not applicable
No entrusted financing in the report period.
(2) Entrusted loans
√ Applicable □ Not applicable
Unit: RMB 0000
Accrued of loan Amount of loan Unexpired balance
Overdue outstanding
amount
30000 Own funds 0 0
Note：
After deliberated and approved by the company's eighth interim meeting of the board of directors held on December 20
2019 the Company issued entrusted loans to Tengchong Yuezhou Water Investment and Development Co. Ltd. with a
total amount of entrusted loans of RMB 300 million. The validity period of the entrusted loan was 3 months and the
annualized interest rate of the entrusted loan was 8.5%. On March 24 2020 the principal and income of the entrusted
loan had been recovered according to the contract.The specific circumstances of high-risk entrusted loan with large individual amount or low security poor liquidity and
no cost protection
□ Applicable √ Not applicable
Entrusted loan appears to be unable to recover the principal or there may be other circumstances that may result in
impairment
□ Applicable √ Not applicable
4. Major contracts for daily operation
√Applicable □ Not applicable
Name of
company
signing the
contract
Name of the other party
signing the contract
Subject
matter
Total contract
amount
Progress of
contract
performance
Amount of
sales revenue
recognized in
the current
period and
accumulated
Collection of
accounts
receivable
Wujiang CSG
Glass Co. Ltd.LONGi Solar
Technology Ltd.Photovoltaic
glass
RMB 6500
million (tax
In progress
The recognized
income was
RMB
75.94million
Dongguan CSG
Solar Glass Co.Ltd.Zhejiang LONGi Solar
Technology Ltd.Taizhou LONGi Solar
Technology Ltd.Yinchuan LONGi Solar
Technology Ltd.
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.included) RMB 134.36
million in this
period and the
accumulated
recognized
income
wasRMB134.3
6million.
There is a significant difference between the progress of the major contract and the contract agreement which affects
more than 30% of the contract amount
□ Applicable √ Not applicable
5. Other material contracts
□ Applicable √ Not applicable
No other material contracts for the Company in the report period.XVIII. Social responsibilities
1. Performance of social responsibilities
2020 Annual Social Responsibilities Report of CSG is the 13th annual report released by the Company consecutively.
The report focusing on the year of 2020 systemically formulated the Company concrete actions of how to positively
perform the social responsibilities and the efforts to implement the “Scientific Development Perspective” building up a
harmonious society and advancing the sustainable development of economic and society. See the full report on
www.cninfo.com.cn.
2. Circumstances related to environmental protection
Whether the listed company and its subsidiaries belong to the key pollutant discharge units announced by the
environmental protection department
Yes
Name of
Company
or
subsidiar
y
Name of
major
pollutants and
characteristic
contaminants
Way of
emission
Num
ber
of
Exha
ust
vent
Exhaust
vent
distributi
on
Emission
concentration
Implementation of
pollutant emission
standards
Total emission
Approved total
emission
Excessive
emissionsXianning Dust\Soot\ Discharge after 16 Chimney Dust≤30mg/m3； 《Emission standard Particulates:17.0 Particulates： Reach the
CSG
Glass
Co. Ltd.
SO2\ Nitrogen
oxide
the treatment of
denitrification
and dust
removal
Exhaust
vent
Soot≤40 mg/m3；
SO2≤300 mg/m3；
NOx≤350 mg/m3.of air pollutants forflat glass industry》
(GB26453-2011)
0t；
SO2:136.05t；
NOx:324.91t.
96.82t/a；
SO2:636.5t/a
Nitrogen
oxides：
1113.89t/a
discharge
standard
Chengdu
CSG
Glass
Co. Ltd
Dust＼Soot＼
SO2＼
Nitrogen
oxide
Discharge after
the treatment of
denitrification
and dust
removal
15
Chimney
exhaust
vent
Dust≤30mg/m3；
Soot≤20mg/m3；
SO2≤200mg/m3；
NOx≤350mg/m3.《Emission standardof air pollutants forflat glass industry》
(GB26453-2011)
Particulates:21.5
2t；SO2:
361.69t；
NOx :627.89t.Particulates：
142.114t/a；
SO2:1136.917t/a；NOx：
1989.609t/a.
Reach the
discharge
standard
Hebei
CSG
Glass
Co. Ltd.
Dust＼
Particulates＼
SO2＼
Nitrogen
oxide
Dischargeafter
denitrification
desulfurization
and dust
removal
treatment
12
Chimney
exhaust
vent
Dust≤10mg/m3；
Particulates≤10mg
/m3；
SO2≤50mg/m3；
NOx≤200mg/m3.《Emission standardof air pollutants forflat glass industry》
DB13/2168-
2015Hebei local
standard
Particulates:4.13
3t；
SO2:28.543t；
NOx :201.192t.Particulates：
59.78t/a；
SO2:498.18t/a；
NOx：982.2t/a.Reach the
discharge
standard
Wujiang
CSG
Glass
Co. Ltd
Particulates＼
SO2＼
Nitrogen
oxide
Discharge after
the treatment of
denitrification
and dust
removal
39
Chimney
exhaust
vent
Particulates≤15mg
/m3；SO2≤50
mg/m3；
NOx≤150 mg/m3.《Emission standardof air pollutants forflat glass industry》
(GB26453-2011)
Particulates：
44.026t；
SO2:175.27t；
NOx :559.75t.Particulates：
76.91t/a；
SO2:238.28t/a；
NOx：
818.04t/a.
Reach the
discharge
standard
Donggua
n CSG
Solar
Glass
Co. Ltd.
dust＼soot＼
SO2＼
Nitrogen
oxide
Discharge after
the treatment of
denitrification
and dust
removal
22
Chimney
exhaust
vent
dust≤20mg/m3；
soot≤20 mg/m3；
SO2≤400 mg/m3；
NOx≤550mg/m3。
《Emission standardof air pollutants forflat glass industry》
(GB26453-2011)
Particulates9.72t
；SO2:
209.22t；
NOx :359.88tt.Particulates：
34.85t/a；
SO2:300.99t/a；NOx：
535.67t/a.
Reach the
discharge
standard
Donggua
n CSG
Architect
ural Glass
Co. Ltd.
PH＼COD＼
Ammonia
nitrogen
Discharged to
the sewage
treatment plant
after being
treated by the
Company's
sewage
treatment
station.
1
Sewage
vent
PH：6~9；
COD≤5mg/L；
Ammonia
nitrogen≤0.537mg
/L.《GuangdongProvince water
pollutant emissionlimit》（DB44/26-
2001）Second
period Level 1
Standard
COD:0.257；
Ammonia
nitrogen:0.047t.
COD:5.4t/a；
Ammonia
nitrogen:0.6t/a.Reach the
discharge
standard
Donggua
n CSG
PV-tech
Co. Ltd.
waste water：
Fluoride＼
COD＼
Ammonia
nitrogen：HF
＼NOx
The wastewater
is discharged
after being
treated by the
sewage station
and the exhaust
gas is
discharged after
being treated by
the exhaust gas
treatment tower.
20
Sewagevent，
Exhaust
vent
COD≤70 mg/L；
exhaust：
NOx≤30mg/m3；
HF≤30 mg/m3.《GuangdongProvince water
pollutant emissionlimit》（DB44/26-
2001）Second
period first levelstandard；《Batteryindustry pollutant
dischargestandards》
（GB30484-2013）.
waste water：
COD：2.05t；
Exhuast：
Nitrogen
oxide：8.91t；
VOC：0.89t.
waste water：
COD：
14.04t/a；
exhaust：
Nitrogen
oxide：8.91t；
VOC：0.89t.
Reach the
discharge
standard
Hebei
Panel
Glass
Co. Ltd.
Dust＼Soot＼
SO2＼
Nitrogen
oxide
Discharge after
the treatment of
denitrification
and dust
removal
5
Chimney
exhaust
vent
dust≤30mg/m3；
soot≤10 mg/m3；
SO2≤50 mg/m3；
NOx≤200mg/m3。
《Electrical GlassIndustry Air
Pollutant EmissionStandards》
(GB29495-2013)
Particulates:0.19
1t；SO2：
0.982t；NOx：
8.339tt.
Particulates：
8.2125t/a；
SO2：22t/a；
NOx：39.4t/a.Reach the
discharge
standard
Yichang
CSG
Display
Co. Ltd.
COD＼
Ammonia
nitrogen＼
Nitrogen
oxide
The waste water
is discharged
after being
treated by the
sewage station
and the exhaust
gas is
discharged after
being treated by
the exhaust gas
treatment tower.
2
Sewagevent，
Exhaust
vent
COD≤500mg/；
NOx<240mg/m3.。
《Sewage Integrated
EmissionStandards》Level 3
Standard (GB8978-1996)；《TheIntegrated Emission
Standard of AirPollutants》
（GB16297-1996）
COD:51.94t.
COD：
99.5t/a；
Nitrogen
oxide：
22.4t/a。
Reach the
discharge
standard
Xianning
CSG
Photovolt
aic Glass
Co. Ltd
Dust＼Soot＼
SO2＼
Nitrogen
oxide
Discharge after
the treatment of
denitrification
and dust
removal
6
Chimney
Exhaust
vent
Dust≤20mg/m3；
Soot≤15 mg/m3；
SO2≤10 mg/m3；
NOx≤350 mg/m3.《Electrical GlassIndustry Air
Pollutant EmissionStandards》
(GB29495-2013)
Particulates:2.16
t；2.065t；
NOx：
63.571t。
SO2：0.101t.
Particulates：
117.656t/a；
SO2：65.6t/a；
Nitrogen
oxide：
163.81t/a.
Reach the
discharge
standard
Construction and operation of pollution prevention and control facilities
The Company has built flue gas dust removal and denitrification system on production lines. The system runs normally
and the emission of exhaust gas meets regulations standard.The environmental impact assessment of construction projects and other environmental protection license
AG+AF glass cover expansion project of Yichang CSG Display Co. Ltd. had completed the environmental impact
assessment work and obtained approval in 2019 and is currently in the construction stage. The easy-clean glass coating
production line project of Xianning CSG Energy-saving Glass Co. Ltd. had undergone an environmental impact
assessment and obtained approval in 2018. The construction of the project has been completed and is currently in the
trial production stage. Qingyuan CSG Energy-saving New Materials Co. Ltd. has an annual production capacity of
200000 tons of special glass expansion project in 2019. The environmental impact assessment and approval were
obtained. The project is in the trial production stage. Anhui CSG New Energy Material Technology Co. Ltd. had
already carried out an environmental impact assessment and obtained approval in 2020 for the project of manufacturing
base for lightweight and high-transparent panels for solar equipment. Zhaoqing CSG Energy-saving Glass Co. Ltd.Zhaoqing Energy-saving CSG Group's energy-saving project had conducted an environmental impact assessment and
obtained approval in 2020 and the project is in the construction stage. The expansion project of special glass with an
annual production capacity of 300000 tons of Sichuan CSG Energy Conservation Glass Co. Ltd. had undergone an
environmental impact assessment and obtained approval in 2020 and the project is in the construction stage. Other new
projects of the subsidiary that do not involve changes in production capacity have also carried out the "three
simultaneous" work of environmental protection in construction projects and have obtained pollutant discharge permits
within the validity period. In accordance with relevant national regulations all subsidiaries have timely carried out
pollution discharge declarations carried out pollution discharge declaration monitoring and paid environmental taxes.
Emergency response plan system of environment incident
In accordance with the national requirements all subsidiaries prepared emergency environmental response plan for
environment incident organized and carried out expert evaluation and filed with the local environmental protection
department as required conducted the emergency drill against environmental incidents. And there were no major
environmental incidents occurred in 2020.
Environmental self-monitoring scheme
Subsidiaries have built wastewater and exhaust gas online monitoring devices in accordance with the requirements of
national laws and regulations construction project environmental impact assessment documents and their approvals
and are operating normally. They have regularly carried out effectiveness comparison audits of online monitoring
facilities and entrusted third-party units to carry out Manual environmental monitoring is implemented to
comprehensively monitor the discharge of pollutants and the monitoring frequency shall be implemented in accordance
with relevant monitoring technical guidelines or pollution discharge permits.Other environmental information to be disclosed
Nil.Other information related to environment protection
Nil.XIX. Statement on other important matters
√Applicable □ Not applicable
1. Ultra-short-term financing bills
On May 14 2018 the company’s 2017 annual shareholders’ meeting deliberated and approved the resolution on the
application for registration and issuance of ultra-short-term financing bills. It agreed that the company should register
and issue ultra-short-term financing bills with a registered amount not exceeding 4 billion yuan (not subject to the
restriction that the amount of ultra-short-term issued shall not exceed 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 Sep. 17 2018 the
Chinese Association of Interbank Market Traders held its 63rd registration meeting in 2018 and decided to approve the
registration of the ultra-short-term financing bills with a total amount of 1.5 billion yuan and a validity period of two
years. The ultra-short-term financing bills are underwritten jointly by Minsheng Bank of China Limited and Industrial
Bank Co. Ltd and can be issued by installments within the validity period of registration. On February 21 2020 the
company issued ultra-short-term financing bonds with a total amount of 300 million yuan and a term of 270 days in the
first phase of 2020 with an interest rate of 4% and a payment date of November 21 2020.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 10 December 2014 the First Extraordinary Shareholders’ General Meeting 2014 of CSG Holding Co. Ltd
deliberated and approved the proposal of application for registration and issuance of medium-term notes with total
amount of RMB 1.2 billion at most. On 21 May 2015 National Association of Financial Market Institutional Investors
(NAFMII) held the 32nd registration meeting of 2015 in which NAFMII decided to accept the registration of the
Company’s medium-term notes amounting to RMB 1.2 billion and valid for two years. China Merchants Bank Co. Ltd.
and Shanghai Pudong Development Bank Co. Ltd. were joint lead underwriters of these medium-term notes which
could be issued by stages within period of validity of the registration on July 14 2015 the Company issued the first
batch of medium-term notes with total amount of RMB 1.2 billion and valid term of 5 years at the issuance rate of
4.94% which will be redeemed on 14 July 2020.
On April 15 2016 the Shareholders’ General Meeting of 2015 of CSG deliberated and approved the proposal of
application for 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.
For details please refer to www.chinabond.com.cn and www.chinamoney.com.cn.
3. Public issuance of corporate bondsOn March 2 2017 the 2nd Extraordinary General Meeting of Shareholders in 2017 reviewed and approved “theProposal on the Public Issuance of Corporate Bonds for Qualified Investors". On February 27 2019 the First
Extraordinary General Meeting of Shareholders in 2019 The “Proposal on Extending the Validity Period of theShareholders' Meeting for the Public Offering of Corporate Bonds to Qualified Investors” agreed to issue corporate
bonds with a total issue of no more than RMB 2 billion and a term of no more than 10 years. On June 26 2019 the
Company received the “Approval of Approving CSG Holding Co. Ltd. to Issue Corporate 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(for details please refer to "Section IX Corporate
Bonds").On March 12 2020 the First Extraordinary General Meeting of Shareholders in 2020 reviewed and approved “theProposal on the Public 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 Holding Co. Ltd. to Issue Corporate Bonds to Qualified Investors” issued
by China Securities Regulatory Commission (ZJXK[2020] No. 784).
4. The situation of meeting of medium term note holders during the report periodOn May 29 2020 the Company issued “Announcement on Holding 2015 First-term Medium-term Noteholders'Meeting of CSG in 2020” and “Announcement on Holding 2018 First-term Medium-term Noteholders' Meeting of CSG
in 2020”due to capital reduction caused by repurchase and cancellation of part of restricted stocks of restricted stock
incentive plan and repurchase and cancellation of restricted stocks that had not reached the unlocking condition of the
third unlock period. On June12 2020 the Company's 2015 first-term medium-term noteholders' meeting 2018 first-
term medium-term noteholders' meeting was held off-site and voted. The 2015 first mid-term note holders meeting and
the 2018 first mid-term noteholders' meeting was not effective as the total voting rights held by the holders attending
the meeting did not reach two-thirds of the total voting rights as required.
5. Entrusted loans
With the approval of the interim meeting of the 8th board of directors of the Company held on December 20 2019 the
Company issued RMB 300 million entrusted loans to Tengchong Yuezhou Water Investment and Development Co. Ltd
with valid term of three months and annual interest rate at 8.5%. By March 24 2020 the principal and income of the
entrusted loan had been recovered as agreed in contract.
6. 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 deliberated 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 Regulatory Commission (No. 200819) issued by the ChinaSecurities Regulatory Commission and published “Announcement on Reply to the Feedback of Application Documents
For Non-public Offering of A shares” and “Announcement on the Revised Reply to the Feedback 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 the Company's application for non-public issuance of A shares was approved. On July 22 2020 the
Company received the “Reply on the Approval of Non-public Issuance of Shares of CSG” (ZJXK [2020] No. 1491)
issued by China Securities Regulatory Commission.XX. Significant events of subsidiaries of the Company
□ Applicable √ Not applicable
Section VI. Changes in Shares and Particulars about Shareholders
I. Changes in Share Capital
Unit: Share
Before the Change Increase/Decrease in the Change (+ -) After the Change
Amount
Proportion
(%)
New
shares
issued
Bonus
shares
Capitalization
of public
reserve
Others Subtotal Amount
Proportion
(%)
I. Restricted shares 41770770 1.34% -38446792 -38446792 3323978 0.11%
1. State-owned shares
2. State-owned legal
person’s shares
3. Other domestic shares 41770770 1.34% -38446792 -38446792 3323978 0.11%
Including: Domestic
legal person’s shares
Domestic natural
person’s shares
41770770 1.34% -38446792 -38446792 3323978 0.11%
4. Foreign shares
Including: Foreign legal
person’s shares
Foreign natural
person’s shares
II. Unrestricted shares 3066425393 98.66% 942736 942736 3067368129 99.89%
1. RMB Ordinary shares 1957059361 62.96% 939708 939708 1957999069 63.76%
2. Domestically listed
foreign shares
1109366032 35.69% 3028 3028 1109369060 36.13%
3. Overseas listed
foreign shares
4. Others
III. Total shares 3108196163 100% -37504056 -37504056 3070692107 100%
Note: The number of shares before the change in the report was adjusted compared with the ending amount in the Annual Report
2019 which was due to the adjustment of the current restricted shares by China Securities Depository and Clearing Corporation
Limited before the opening of the first trading day in 2020.Reasons for equity changes
√Applicable □Not applicable
1.The company's total shares were reduced by 37504056 due to the repurchase of some restricted stock in the
restricted stock incentive program and the repurchase of restricted stock that did not meet the unlocking conditions of
the third unlocking period.
2.942736 shares locked by the outgoing supervisors and senior executives were unlocked at maturity.
3. Due to the change of the company's senior management and the lockup of their shareholding the Shenzhen branch of
China securities registration and clearing Co. Ltd. shall adjust the restricted shares held by the senior management in
accordance with relevant regulations and the company’s restricted shares and unrestricted shares changed accordingly.
Approval on equity changes
√Applicable □Not applicable
1. The Company’s Proposal on Repurchase and Cancellation of Part of Restricted Stocks of Restricted Stock Incentive
Plan was deliberated and approved by the interim meeting of the Eighth Board of Directors and the interim meeting of
the Eighth Board of Supervisors held on September16 2019 and was deliberated and approved by the Fourth
Extraordinary General Meeting of Shareholders of 2019.
2. The Company’s Proposals on Repurchase and Cancellation of Part of Restricted Stocks of Restricted Stock Incentive
Plan and Repurchase and Cancellation of Restricted Stocks That Had Not Reached The Unlocking Condition of The
Third Unlock Period were deliberated and approved by the 11
th
meeting of the Eighth Board of Directors and the 11
th
meeting of the Eighth Board of Supervisors held on April 28 2020 and were deliberated and approved by the 2019
Annual General Meeting of Shareholders.
Transfer of ownership of changes in shares
√Applicable □Not applicable
1. The Company repurchased and cancelled all restricted stocks held by 32 unqualified original incentive objects and
the restricted stocks held by 451 incentive objects that did not meet the unlocking conditions of the third unlock period.
As of June 16 2020 the Company had completed the cancellation procedures for the above-mentioned restricted stocks
in Shenzhen Branch of China Securities Depository and Clearing Corporation Limited.
2.For the change of senior management and lockup of their shareholdings Shenzhen Branch of China Securities
Depository and Clearing Corporation Limited adjusted the Company’s restricted shares and unrestricted shares
accordingly in accordance with relevant regulations.Implementation progress of share repurchase
□Applicable √Not applicable
Implementation progress of share buyback reduction through centralized bidding
□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 Company in the latest year and period
√Applicable □ Not applicable
Please refer to the main accounting data and financial indicators in this report for the details of the impact of stock
changes.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
Shareholders’
name
Number of
shares
restricted at
the
beginning of
the
period
(Note 1)
Numbe
r of
shares
release
d in the
Period
Number of
shares
repurchase
d in the
period
(Note2)
Number
of new
shares
restricted
in the
Period
Number of
shares
restricted
at the end
of the
Period
Reason for
restriction
Released date
Chen Lin 2130274 1217300 912974
Executive lockup
stocksof912974sh
ares
Releasing of executive
lockup stocks will be
implemented according
to relevant policies.Wang Jian 1328250 759000 569250
Executive lockup
stocks
Releasing of executive
lockup stocks will be
of569250shares implemented according
to relevant policies.Lu Wenhui 1597705 912975 684730
Executive lockup
stocks
of684730shares
Releasing of executive
lockup stocks will be
implemented according
to relevant policies.He Jin 1178100 673200 504900
Executive lockup
stocksof504900sh
ares
Releasing of executive
lockup stocks will be
implemented according
to relevant policies.Yang Xinyu 1521623 869499 652124
Executive lockup
stocksof652124sh
ares
Releasing of executive
lockup stocks will be
implemented according
to relevant policies.
Core
Management
Team
22729518 22729518 0 -- --
Technology
and Business
Backbone
9389997 9389997 0 -- --
Others 1895303 942736 952567 0
Total 41770770 942736 37504056 3323978 -- --
Note1: The number of shares restricted at the beginning of the period in the above table was adjusted compared with the
ending amount in the Annual Report 2019 which was due to the adjustment of the current restricted shares by China
Securities Depository and Clearing Corporation Limited before the opening of the first trading day in 2020.Note2: The Company repurchased and cancelled all restricted stocks held by 32 unqualified original incentive objects
and the restricted stocks a total of 37504056 shares held by 451 incentive objects that did not meet the unlocking
conditions of the third unlock period. As of June 16 2020 the Company had completed the cancellation procedures for
the above-mentioned restricted stocks in Shenzhen Branch of China Securities Depository and Clearing Corporation
Limited.Note 3:942736 shares locked by the outgoing supervisors and senior executives were unlocked at maturity.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
1. On September 16 2019 the company convened an extraordinary meeting of the 8th Board of Directors and anextraordinary meeting of the 8th Board of Supervisors and reviewed and approved the “Proposal on Repurchase and
Cancelation part of Restricted Stocks of Restricted Stock Incentive Plan” considered and agreed to repurchase and
cancel the total of 1281158 shares of 18 incentive targets of all restricted stocks that have been granted to them who
have not been eligible with stock still under restriction. It was approved by the forth extraordinary general meeting of
shareholders in 2019 held on October 10 2019. By June 16 2020 the cancellations procedure of above restricted
shares has been accomplished.
2. On April 28 2020 the company held the 11th meeting of the 8th board of directors and the 11th meeting of the 8thboard of supervisors. The meetings approved the “Proposal concerning the repurchase and cancellation of somerestricted shares from the ‘incentive plan’ of restricted shares” and the “Proposal concerning the repurchase andcancellation of restricted shares failing to meet the third-term unlocking condition”. The meetings approved to
repurchase and cancel a total of 909936 restricted shares which have already been granted to and held by 14 recipients
who are unqualified for the “incentive plan” and repurchase and cancel a total of 35312962 restricted shares failing to
meet the third-term unlocking condition from 451“incentive” recipients. Independent directors agreed with this and it
was approved by the annual general meeting of shareholders 2019 on May 21 2020. By June 16 2020 the
cancellations procedure of above restricted shares has been accomplished.
3. Existing internal staff shares
□ Applicable √ Not applicable
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 shareholders at
the end of the report
period
146594
Total shareholders at
the end of the month
before this annual
report disclosed
139532
Total preference
shareholders with voting
rights recovered at end of
report period (if
applicable)
0
Total preference
shareholders with
voting rights recovered
at end of the month
before this annual
report disclosed (if
applicable)
0
Shareholder with above 5% shares hold or top 10 shareholders
Full name of Shareholders Nature of
shareholder
Proportion
of shares
held (%)
Total shares
held at the
end of report
period
Changes in
report period
Amou
nt of
restrict
ed
shares
held
Amount of
un-restricted
shares held
Number of share
pledged/frozen
Share
status
Amount
Foresea Life Insurance Co. Ltd.
– HailiNiannian
Domestic non
state-owned
legal person
15.19% 466386874 466386874
Foresea Life Insurance Co. Ltd.
– Universal Insurance Products
Domestic non
state-owned
legal person
3.86% 118425007 118425007
Zhongshan Runtian Investment
Co. Ltd.
Domestic non
state-owned
legal person
2.82% 86633447 86633447 86633447 Pledged 67650000
Hong Kong Securities Clearing
Co. Ltd.
Foreign legal
person
2.75% 84292647 48968321 84292647
Foresea Life Insurance Co. Ltd.
– Own Fund
Domestic non
state-owned
legal person
2.11% 64765161 64765161
Central Huijin Asset
Management Ltd.State-owned
legal person
1.89% 57915488 57915488
China Galaxy International
Securities (Hong Kong) Co.Limited
Foreign legal
person
1.35% 41349778 -194592 41349778
China Merchants Securities
(HK) Co. Limited
State-owned
legal person
1.15% 35243630 2784693 35243630
Shenzhen International Holdings
(SZ) Limited
State-owned
legal person
0.95% 29095000 29095000
VANGUARD EMERGING Foreign legal 0.64% 19584997 264764 19584997
MARKETS STOCK INDEX
FUND
person
Strategic investors or general legal
person becomes top 10 shareholders
due to shares issued (if applicable)
N/A
Explanation on associated
relationship among the aforesaid
shareholders
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. Shenzhen Jushenghua Co. Ltd. is a
related legal person of Foresea Life Insurance Co. Ltd. and Chengtai Group Co. Ltd. another
related legal person of Foresea Life Insurance Co. Ltd which 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.Particular about top ten shareholders with un-restrict shares held
Shareholders’ name
Amount of un-restrict
shares held at year-
end
Type of shares
Type Amount
Foresea Life Insurance Co. Ltd. – HailiNiannian 466386874 RMB ordinary shares 466386874
Foresea Life Insurance Co. Ltd. – Universal Insurance
Products
118425007 RMB ordinary shares 118425007
Zhongshan Runtian Investment Co. Ltd. 86633447 RMB ordinary shares 86633447
Hong Kong Securities Clearing Co. Ltd. 84292647 RMB ordinary shares 84292647
Foresea Life Insurance Co. Ltd. – Own Fund 64765161 RMB ordinary shares 64765161
Central Huijin Asset Management Ltd. 57915488 RMB ordinary shares 57915488
China Galaxy International Securities (Hong Kong) Co.
Limited
41349778
Domestically listed
foreign shares
41349778
China Merchants Securities (HK) Co. Limited 35243630
Domestically listed
foreign shares
35243630
Shenzhen International Holdings (SZ) Limited 29095000 RMB ordinary shares 29095000
VANGUARD EMERGING MARKETS STOCK
INDEX FUND
19584997
Domestically listed
foreign shares
19584997
Statement on associated
relationship or consistent action
among the above shareholders:
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. Shenzhen Jushenghua Co. Ltd. is a related
legal person of Foresea Life Insurance Co. Ltd. and Chengtai Group Co. Ltd. another related
legal person of Foresea Life Insurance Co. Ltd which 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.
Explanation on shareholders
involving margin business (if
applicable)
N/A
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 reporting period
□Yes √ No
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 657577954shares 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; its person acting in concert Zhongshan Runtian Investment Co. Ltd.held 86633447 shares which accounts for 2.82% of the Company’s total shares; its person acting in concert Chengtai
Group Co. Ltd. held 51709088 shares of B-share via China Galaxy International Securities (Hong Kong) Co. Ltd and
Guosen Securities (Hong Kong) Brokerage Co. Limited which accounts for 1.68% of the Company’s total shares.
Foresea Life Insurance and its persons acting in concert totally held 25.92% of the Company’s total shares which is less
than 30% meanwhile the number of directors recommended by Foresea Life Insurance and its persons acting in
concert l persons was no more than half of total number 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
The nature of actual controller: no actual controller
The type of actual controller: Not exist
Explanation on the Company without actual controller
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
fundForesea 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; its person acting in concert Zhongshan Runtian
Investment Co. Ltd. held 86633447 shares which accounts for 2.82% of the Company’s total shares; its person acting
in concert Chengtai Group Co. Ltd. held 51709088 shares of B-share via China Galaxy International Securities (Hong
Kong) Co. Ltd and Guosen Securities (Hong Kong) Brokerage Co. Limited which accounts for 1.68% of the
Company’s total shares. Foresea Life Insurance and its persons acting in concert totally held 25.92% of the Company’s
total shares which is less than 30% meanwhile the number of directors recommended by Foresea Life Insurance and
its persons acting in concert was no more than half of total number of the Company’s board of directors.Shareholders with over 10% shares held in ultimate controlling level
√Yes □No
Natural person
Shares held in ultimate controlling level
Shareholders Nationality
Whether to obtain the right of abode in 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
listed companies over the past 10 years
N/A
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:
Yao Zhenhua
Shenzhen Baoneng
Chuangying Investment
partenership Co. Ltd.Shenzhen Zheshang Baoneng
Industry Investment
partnership Enterprise
Limited
Shenzhen Baoneng Investment
Group Co. Ltd.Shenzhen Baoyuan Logistics
Co. Ltd
Shenzhen
Jushenghua Co. Ltd.Shenzhen Shenyue
Holding Co. Ltd.Shenzhen Yueshang
Logisitics Co. Ltd.Kaixinheng Co. Ltd.Jinfeng Tongyuan
Co. Ltd.
Foresea Life Insurance Co.
Ltd.Shenzhen Hualitong
Investment
Co. Ltd.
Chengtai Group
Co. Ltd.
Zhongshan Runtian
Investment Co. Ltd.
CSG Holding Co. Ltd.
1.92% 67.40% 0.68% 30%
100%
100% 100%
51% 20% 19.8% 4.6% 4.6%
2.82%1.68% 21.41%
Actual controller controlling of the Company by entrust or other assets management
□Applicable √Not applicable
4. Particulars about other legal person shareholders holding over 10% shares
□ Applicable √ Not applicable
5. Limitation on share reduction of controlling shareholders actual controllers recombination party and
other commitment subjects
□ Applicable √ Not applicable
Section VII. Particulars about Directors Supervisors Senior
Executives and Employees
I. Changes of shares held by directors supervisors and senior executives
Name Title
Working
status
Sex Age
Start dated
of office
term
End date of
office term
Shares held
at period-
begin
(Share)
Amount
of shares
increased
in this
period
(Share)
Amount
of shares
decrease
d in this
period
(Share)
Other
changes
(share)
Shares
held at
period-
end
(Share)
Chen Lin
Chairman of the
Board
Currently in
office
Female 49 2016-11-19 2023-05-21 2840365 -1217300 1623065
Wang Jian
Secretary of the
Party
Committee
Director of the
Board CEO
Currently in
office
Male 57 2016-01-21 2023-05-21 1771000 -759000 1012000
Zhu Guilong
Independent
Director
Currently in
office
Male 57 2017-05-02 2023-05-21
Zhu Qianyu
Independent
Director
Currently in
office
Female 46 2019-04-10 2023-05-21
Xu Nianhang
Independent
Director
Currently in
office
Male 43 2020-05-21 2023-05-21
Zhang
Jinshun
Director
Currently in
office
Male 56 2017-05-02 2023-05-21
Cheng Xibao Director
Currently in
office
Female 39 2016-01-21 2023-05-21
Cheng
Jinggang
Director
Currently in
office
Male 40 2020-05-21 2023-05-21
Yao
Zhuanghe
Director
Currently in
office
Male 62 2020-05-21 2023-05-21
Li Jianghua
Chairman of the
Supervisory
Board
Employee
Supervisor
Currently in
office
Male 44 2019-03-27 2023-05-21
Gao
Changkun
Employee
Supervisor
Currently in
office
Female 52 2018-08-30 2023-05-21
Meng Lili Supervisor
Currently in
office
Male 43 2020-05-21 2023-05-21
Lu Wenhui
Executive Vice
President
Currently in
office
Male 58 2017-02-23 2023-05-21 2130273 -912975 1217298
He Jin Vice president
Currently in
office
Male 49 2018-04-08 2023-05-21 1570800 -673200 897600
Yang Xinyu
Secretary of the
Board
Currently in
office
Male 41 2017-05-02 2023-05-21 2028831 -869499 1159332
Zhan Weizai
Independent
Director
Post leaving Male 57 2016-12-14 2020-05-21
Ye Weiqing Director Post leaving Female 49 2016-01-21 2020-05-21
Li Xinjun Supervisor Post leaving Male 53 2017-01-13 2020-05-21
Total -- -- -- -- -- -- 10341269 -4431974 5909295
Note: Due to the Company's failure to meet the performance conditions for unlocking restricted shares in the third release period of the Incentive Plan
for A-share Restricted Shares in 2017 the restricted shares held by the above directors Chen Lin Wang Jian and senior executives Lu Wenhui He Jin
and Yang Xinyu which expected to be released from the restrictions in the third unlocking period could not be unlocked and were repurchased and
cancelled by the Company with a total of 4431974 shares.
II. Changes of directors supervisors and senior executives
√Applicable □ Not applicable
Name Title Type Date Reason
Xu Nianhang Independent Director Be Elected 21 May 2020 Election of the Board of Directors
Cheng Jinggang Director Be Elected 21 May 2020 Election of the Board of Directors
Yao Zhuanghe Director Be Elected 21 May 2020 Election of the Board of Directors
Meng Lili Supervisor Be Elected 21 May 2020 Election of the Board of Supervisors
Zhan Weizai Independent Director Post leaving 21 May 2020 Left the post when the term expired
Ye Weiqing Director Post leaving 21 May 2020 Left the post when the term expired
Li Xinjun Supervisor Post leaving 21 May 2020 Left the post when the term expired
III. Post-holding
Major professional background working experience of directors supervisors and senior executive and their major
responsibility in the Company at present
Chen Lin: took posts of Department Manager General Manager Assistant in Shenzhen Shum Yip Logistics Group Co.
Ltd. At present she is the Senior Vice President of Shenzhen Baoneng Investment Group Co. Ltd. Deputy General
Manager in Shenzhen Shum Yip Logistics Group Co. Ltd. Chairman of Board of Supervisors of Foresea Life
Insurance Co. Ltd. Chairman of Board of Supervisors of Xinjiang Qianhai United Property & Casualty Insurance Co.Ltd. Supervisors of Shenzhen Jushenghua Co. Ltd. Director of Guangdong Shaoneng Group Co. Ltd. Director of
Nanning department store Co. Ltd. Chairman of the Board of Jonjee Hi-tech Industrial & Commercial Holding Co.Ltd. Chairman of the Board of Baoneng Automobile Co. Ltd. and Chairman of the Board of the Company.Wang Jian: took posts of General Manager and Executive Director of China North Industries Tianjin Corporation
General Manager of China North Vehicle Co. Ltd. and Deputy Chairman and Chairman of Shanghai Nonferrous
Metals E-Commerce Co. Ltd. General Manager of investment management department of China North Industries
Corporation Chairman of the Board of Chengdu Yinhe Dynasty Hotel Co. Ltd. Deputy Chairman of the Board of
Shenzhen Baoyin Electricity Co. Ltd. Chairman of the Board of North Property Development Company Limited. At
present he is Secretary of the Party Committee Director of the Board and CEO of the Company.Zhu Guilong: took posts of researcher of the Institute of Forecasting and Development at Hefei University of
Technology Independent Director of Jiangsu Saifutian Steel Cable Co. Ltd. Currently he is a professor and doctoral
tutor of the School of Business Administration South China University of Technology Executive Director of Chinese
Association For Science of Science and S&T Policy Vice Chairman of Guangdong Institute of Technical Economy and
Management Modernization Vice Chairman of Guangdong Economic Society Independent Director of GRG
BANKING EQUIPMENT CO. Ltd. Independent Director of Guangzhou Kingmed Diagnostics Group Co. Ltd.
Independent Director of Guangzhou bank Co. Ltd. Director of Jiangxi Jiufeng Energy Co. Ltd. Director of
Guangdong Yiji Network Co. Ltd. Director of CS Richland Asset Co. Ltd. Director of Guangzhou Nuocheng
Biological Products Co. Ltd. and Independent Director of the Company.
Zhu Qianyu: took posts of lecturer and associate professor of School of Finance of South-Central University For
Nationalities Postdoctoral in Finance Department of Guanghua School of Management at Peking University and
researcher of Peking University Finance and Securities Research Center. At present she is associate professor at
Renmin University of China independent director of Kingfa SCI.&TECH. Co. Ltd. independent director of
LandOcean Energy Services Co. Ltd. and independent director of the Company.
Xu Nianhang: took posts of postdoctoral researcher in the Department of finance Guanghua School of management
Peking University lecturer and associate professor in the Business School of Renmin University of China independent
director of Danhua Chemical Technology Co. Ltd. and independent director of Leador Spatial Information Technology
Corporation; At present he isthe director professor and doctoral advisor of the Department of Finance and finance
Business School of Renmin University of China an independent director of Xinsteel Group Co. Limited independent
director of Fujian Newchoice Pipe Technology Co. Ltd. independent director of Chongqing Three Gorges Bank Co.Ltd. (unlisted company) independent director of Beijing iHandy Mobile Inc. (unlisted company) independent director
of Inner Mongolia Dazhong Mining Co. Ltd. (unlisted company) and independent director of the Company.Zhang Jinshun: took posts of member of the Party Committee and Deputy President of the head office of Ping An
Bank Secretary of the Party Committee and Chairman of Board of Ping An Trust Co. Ltd. General Manager of
Chang’an International Trust Co. Ltd..At present he is Deputy Chairman of the Board of Shenzhen Baoneng
Investment Group Co. Ltd. President and CEO of Shenzhen Jushenghua Co. Ltd. Chairman of Board of Foresea Life
Insurance Co. Ltd. Chairman of Board of Baoneng Logistics Group Co. Ltd. and director of the Company.
Cheng Xibao: took posts of Deputy Manager and Manager of financial department of Huizhou Olympic Garden Co.
Ltd. which is a subsidiary of China Sports Group Industry Manager of financial department of Shenzhen Xuansheng
Investment Co. Ltd. which is a subsidiary of Foxconn and Manager Vice President Executive Vice President of
financial department President Assistant Vice President of Shenzhen Baoneng Investment Group Co. Ltd..At present
she is Senior Vice President of Shenzhen Baoneng Investment Group Co. Ltd. Executive Vice President of Baoneng
City Development and Construction Group Co. Ltd. the Supervisor of Xinjiang Qianhai United Property & Casualty
Insurance Co. Ltd. Director of Foresea Life Insurance Co. Ltd. Director of Baoneng Automobile Co. Ltd. Director of
Qoros Automobile Co. Ltd. Director of Guizhou Baoneng Automobile Co. Ltd. Director of Shenzhen
ShenzhenBaoneng Travel Co. LTD. Supervisor of Guizhou Baoneng Automobile Co. Ltd. and Director of the
Company.
Cheng Jinggang: took posts of credit analyst of Dagong Global Credit Rating Co. Ltd. senior credit analyst of the
fixed income department of Funde Sino Life Insurance Co. Ltd. senior manager of the credit evaluation department of
Sino Life Asset Management Co. Ltd. and supervisor of Guangdong Shaoneng Group Co. Ltd.; At present he is
Deputy Director of the Asset Management Center of Foresea Life Insurance Co. Ltd. Chairman of the Board of
Supervisors of Nanning Baihuo Co. Ltd. Director of Guangdong Shaoneng Group Co. Ltd. and Director of the
Company.
Yao Zhuanghe: took posts of deputy director of Food Engineering Department of South China University of
technology deputy general manager and general manager of Guangdong United Food Enterprise Center 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 Party Member of Guangdong Guangye Environmental Construction Group (former Guangdong Guangye Real
Estate Group) Deputy secretary；At present he is director of the Company.
Li Jianghua: took posts of assistant of general manager and deputy general manager of the Operation Service
Department of the Information Management Center of Foresea Life Insurance deputy general manager of IT
Department of Xinjiang Qianhai United Property & Casualty Insurance Co. Ltd. general manager of Integrated
Financial Development Department of Foresea Life Insurance and chairman of the supervisory board of the Company.
Meng Lili: took posts of Deputy Manager of Human Resources Department of Huafu Fashion Co. Ltd. Manager of
Human Resources Department of Baoneng Zhiye Co. Ltd. Supervisor of Foresea Century Insurance Brokers Co. Ltd.;
At present she is Deputy Director and Employee Supervisor of Human Resources Center of Foresea Life Insurance Co.
Ltd. General Manager of the Office of the Board of Directors Supervisor of Guangdong Shaoneng Group Co. Ltd.and Supervisor of the Company.Gao Changkun: took the post of the operation director of Beijing Lianxingketong Microelectronics Co. LTD. and the
investment specialist of Pintree (Shanghai) Equity investment and management Co. Ltd. At present he is the President
of the solar energy business division and the supervisor of the employees of the Company.Lu Wenhui: took posts of Vice General Manager of the Company and General manager of Float Glass Business
Department of the company the vice president of the company and the general manager of the Engineering and
Automotive Glass Business Department of the company the chief economy expert of the company the director of
Enterprise Operation Department the vice president of the Solar Business Department the vice president of the
company and the president of the Fine Glass Business Department and the president of Shenzhen Monitor Company a
subsidiary company. At present he is the vice president and the president of the Overseas Business Division of the
Company.
He Jin: took posts of general manager of CSG (Shenzhen) Float Glass Co. Ltd. the vice president of Float Glass
Department the general manager of CSG (Dongguan) Solar Glass Co. Ltd. the general manager of CSG (Chengdu)
Co. Ltd. and the general manager of CSG (Qingyuan) Energy Saving New Material Co. Ltd. He is currently president
of the Flat Panel and Electronic Glass Division and the vice president of the company.Yang Xinyu: took posts of the Securities Department of Beijing KWM Law Firm the risk control director the assistant
of the chairman of the board and head of the Law Department of Honghua International Medical Holding Co. Ltd. and
the director of the Audit and Supervision Department the director of the Stock affairs Department of the company. He
is currently the secretary of the board of directors of the company Deputy Vice Director.Post-holding in shareholder’s unit
√Applicable □ Not applicable
Name Name of shareholder’s unit
Position in
shareholder’s unit
Start dated of
office term
End date of
office term
Received
remuneration from
shareholder’s unit
or not
Chen Lin
Foresea Life Insurance Co. Ltd.
Chairman of
Supervisory Board
Apr. 2012 Yes
Shenzhen Jushenghua Co. Ltd. Supervisor July 2016 No
Zhang
Jinshun
Shenzhen Jushenghua Co. Ltd. President & CEO Jan. 2016 Yes
Foresea Life Insurance Co. Ltd. Chairman of Board Sep. 2017 No
ChengXibao Foresea Life Insurance Co. Ltd. Director Oct. 2017 No
Cheng
Jinggang
Foresea Life Insurance Co. Ltd.
Deputy Director of the
Asset Management
Center
Apr. 2012 Yes
Meng Lili Foresea Life Insurance Co. Ltd.
Deputy Director and
Employee Supervisor
of Human Resources
June 2013 Yes
Center
General Manager of the
Office of the Board of
Directors
Note of post-
holding in
shareholder’s
unit
N/A
Post-holding in other unit
√Applicable □Not applicable
Name Name of other units
Position in
other unit
Start dated of
office term
End date of
office term
Received
remuneration from
other unit or not
Chen Lin
Shenzhen Shum Yip
Logistics Group Co. Ltd.
Deputy General
Manager
May 2003 No
Shenzhen Baoneng
Investment Group Co. Ltd.
Executive Vice Present Oct. 2014 No
Xinjiang Qianhai United
Property&Casualty
Insurance Co.Ltd.
Chairman of the
Supervisory board
May 2016 No
Guangdong Shaoneng
Group Co. Ltd.
Director Nov. 2015 Yes
Nanning department store
co. Ltd.
Director Apr. 2018 Yes
Jonjee Hi-tech Industrial &
Commercial Holding Co.
Ltd.
Chairman of the Board Nov. 2018 Yes
Baoneng Automobile Co.
Ltd.
Chairman of the Board Dec. 2017 No
Zhu Guilong
South China University of
Technology
Professor and Doctoral
tutor
Aug. 2000 Yes
GRG BANKING
EQUIPMENT CO. Ltd.
Independent director Jan. 2018 Yes
Guangzhou Kingmed
Diagnostics Group Co.
Ltd.Independent director Nov. 2015 Yes
Guangzhou bank Co.Ltd. Independent director Apr. 2019 Yes
Jiangxi Jiufeng Energy
Co.Ltd.
Director Jan. 2019 Yes
Guangdong Yiji Network
Co. Ltd.
Director Nov.2018 No
CS Richland
AssetCo.Ltd.
Director Jul.2019 Yes
Guangzhou Nuocheng
Biological Products Co.
Ltd.
Director Sep.2020 No
Zhu Qianyu
Renmin University of
China
Associate Professor Mar. 2010 Yes
Kingfa SCI.&TECH.
Co.Ltd.
Independent director Jan.2021 Yes
LandOcean Energy
Services Co.Ltd
Independent director Jan.2021 Yes
Xu Nianhang
Business School of
Renmin University of
China
Director professor and
doctoral advisor
Nov.2014 Yes
Xinyusteel Group Co.Limited
Independent director Apr.2018 Yes
Fujian Newchoice Pipe Independent director Jan.2018 Yes
Technology Co. Ltd.
Chongqing Three Gorges
Bank Co. Ltd.
Independent director May 2019 Yes
Beijing iHandy Mobile Inc.
(unlisted company)
Independent director Oct.2018 Yes
Inner Mongolia Dazhong
Mining Co. Ltd. (unlisted
company)
Independent director May 2020 Yes
Leador Spatial Information
Technology Corporation
Independent director Aug.2018 Dec.2020 Yes
Zhang
Jinshun
Shenzhen Baoneng
Investment Group Co. Ltd.
Deputy Chairman of
the Board
Mar. 2017 No
Baoneng Logistics Group
Co. Ltd.
Chairman of Board Oct.2020 No
Cheng Xibao
Shenzhen Baoneng
Investment Group Co. Ltd.Senior Vice President Nov. 2020 No
Baoneng City
Development and
Construction Group Co.
Ltd.
Executive Vice
President
Oct. 2018 Yes
Xinjiang Qianhai United
Property & Casualty
Insurance Co. Ltd.Supervisor Sep. 2016 No
Baoneng Automobile Co.
Ltd.
Director Mar. 2017 No
Qoros Automobile Co.Ltd.
Director Dec. 2017 No
Shenzhen Baoneng Travel
Co.LTD.
Director Sep. 2019 No
Guizhou Baoneng
Automobile Co. Ltd.
Supervisor Jan. 2018 No
Cheng
Jinggang
Asset Management Center
of Foresea Life Insurance
Co. Ltd.
Chairman of the Board
of Supervisors
Apr. 2018 Yes
Nanning Baihuo Co. Ltd. Chairman of the Board Dec. 2020 Yes
Meng Lili
Human Resources Center
of Foresea Life Insurance
Co. Ltd.
Deputy Director and
Employee Supervisor
Dec.2020 Yes
Note of post-
holding in
shareholder’s
unit
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
IV. Remuneration for 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 and external supervisors 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 supervisors are confirmed
based on industry standards and 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 and each external supervisor are RMB 0.15 million per year paid by actual month of
service. The total remuneration for directors supervisor and senior executives in the report period was RMB 26.8515
million.Remuneration for directors supervisors and senior executives of the Company within the report period
Unit: RMB0000
Name Title Sex Age
Post-holding
status
Total
remuneration
obtained from
the Company
before taxation
Received
remuneration
from related
party of the
Company or not
Chen Lin Chairman of the Board Female 49
Currently in
office
Yes
Wang Jian
Secretary of the Party
Committee Director of the
Board CEO
Male 57
Currently in
office
538.21 No
Zhu Guilong Independent Director Male 57
Currently in
office
15 No
Zhu Qianyu Independent Director Female 46
Currently in
office
15 No
Xu Nianhang Independent Director Male 43
Currently in
office
10 No
Zhang Jinshun Director Male 56
Currently in
office
Yes
Cheng Xibao Director Female 39
Currently in
office
Yes
Cheng
Jinggang
Director Male 40
Currently in
office
Yes
Yao Zhuanghe Director Male 62
Currently in
office
10 No
Li Jianghua
Chairman of the
Supervisory Board
Employee Supervisor
Male 44
Currently in
office
134.51 No
Meng Lili Supervisor Female 52
Currently in
office
Yes
Gao Changkun Employee Supervisor Male 43
Currently in
office
182.83 No
Lu Wenhui Executive Vice President Male 58
Currently in
office
680.24 No
He Jin Vice president Male 49
Currently in
office
695.26 No
Yang Xinyu Secretary of the Board Male 41
Currently in
office
394.10 No
Zhan Weizai Independent Director Male 57 Post leaving 5 No
Ye Weiqing Director Female 49 Post leaving Yes
Li Xinjun Supervisor Male 53 Post leaving 5 No
Total 2685.15
Directors and senior management of the company were granted equity incentives during the reporting period
√Applicable □Not applicable
Unit: Share
Name Title Number Number The Market The Number Numbe The granting The
of
shares
outstand
ing
during
the
report
period
of shares
already
exercise
d during
the
report
period
exercise
price of
the
exercised
shares
during
the report
period
(RMB /
share)
price at
the end
of the
report
period
(RMB /
share)
number of
restricted
stocks held
at the
beginning
of the
period
of shares
unlocked
in this
period
r of
restricte
d shares
newly
granted
during
the
report
period
price of
restricted stock
(RMB / share)
number
of
restricte
d stocks
held at
the end
of the
period
Chen Lin
Chairman
of the
Board
0 0 1217300 0 0 4.28 0
Wang
Jian
Secretary
of the
Party
Committee
Director
of the
Board
CEO
0 0 759000 0 0 3.68 0
Lu
Wenhui
Executive
Vice
President
0 0 912975 0 0 4.28 0
He Jin
Vice
president
0 0 673200 0 0
Awarded for
the first
time:4.28
The reserved
awarded:3.68
0
Yang
Xinyu
Secretary
of the
Board
0 0 869499 0 0 4.28 0
Total -- 0 0 -- -- 4431974 0 0 -- 0
Remarks (if any)
①In case the unlocking conditions of the restricted stock incentive plan is satisfied the
restricted shares Unlock in three phases after 12 months from the date of grant: 40% of the
restricted stocks will be available for circulation within the period (from the first trading day
following the lock-up period of 12 months to the last trading day of lock-up period of 24
months) 30% of the restricted stocks will be available for circulation within the period (from
the first trading day following the lock-up period of 24 months to the last trading day of the
lock-up period of 36 months) and 30% of the restricted stocks will be available for circulation
within the period (from the first trading day following the lock-up period of 36 months to the
last trading day of the lock-up period of 48 months).
②For the Company did not meet the performance conditions for the third unlocking period of
the 2017 a-share restricted stock incentive plan the restricted shares held by the above
directors and senior managers that can be released during the third unlocking period shall not
be released and shall be repurchased and cancelled by the Company totaling4431974 shares.V. Particulars of workforce
1. Number professional composition and educational background of employees
Number of employees in the parent company (person) 543
(Note)
Number of employees in major subsidiaries of the Company (person) 10015
Total number of employees (person) 10558
Total number of employees received salaries in the period (person) 10558
Number of retired employees whose costs borne by the parent company and its main
subsidiaries (person)
0
Professional composition
Category of professional composition
Number of professional
composition (person)
Production personnel 7205
Salesman 662
Technician 1489
Financial personnel 128
Administrative personnel 1074
Total 10558
Educational background
Category of educational background Number (person)
Doctor 7
Master 160
Undergraduate 2400
Junior college 1951
Degree below junior college 6040
Total 10558
Note: Among them there are 359 employees sent by the headquarters to the subsidiary.
2. Staff remuneration policy
In 2020，the Company continue to emphasize the principle of "performance orientation" in compensation management
through strengthening the concept of organizational performance and strengthening the application of performance
results we advocate that salary incentives should be inclined to high-performing organizations and high-performing
individuals to improve the work enthusiasm of employees and then improve the overall performance of the
organization to achieve the business objectives.
3. Staff training plan
The Company has always attached great importance to the talent team construction and staff training and development.
Every year the Company sets up a special fund for the employees' skills training capacity development and quality
improvement. The Company has established a comprehensive training and development system for all kinds of
employees and developed personalized training and development systems for senior middle and grass-roots employees
so as to stimulate the drive of employees enhance the competitiveness of the enterprise and provide a strong guarantee
for the development of CSG Group. Based on the strategy of sustainable development of human resources the
Company will continue to deepen the scientific and systematic operation of training and development so as to energize
promote management and increase benefits and achieve a win-win situation for the growth of employees and the
development of the enterprise.
4. Labor outsourcing
□ Applicable √ Not applicable
Section VIII. Corporate Governance
I. Corporate governance of the Company
In strict compliance with the requirements of the relevant laws and regulation including The Company Law Securities
Law and Rule of Governance for Listed Company the Company has been putting efforts in improving the corporate
governance strengthening management of information disclosure regulating operation activities and establishing a
modern corporate system. At present the system for corporate governance of the Company is basically perfect
operation is regulated corporate governance is consummated which accord with the requirements of relevant
documents on corporate governance of listed company issued by CSRS.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 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. It didn’t exist that insiders used the inside information to
trade the Company’s shares before the major sensitive information which could affect the Company’s share price was
disclosed.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 (2018- 2020) 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
(ZGZJHGG No. [2013] 43) 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 actual controller. And it did not exist that non-operating fund of listed company was occupied by the
largest shareholder and its affiliated enterprises.Is there any difference between the actual condition of corporate governance and relevant regulations about corporate
governance for listed company from CSRC?
□Yes √ No
There are no differences between the actual condition of corporate governance and relevant regulations about corporate
governance for listed company from CSRC.
II. Independency of the Company relative to the largest shareholder’ in aspect of businesses
personnel assets organization and finance
The Company has been absolutely independent in business personal assets organization and financial from its
substantial shareholders ever since its establishment. The Company had 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
substantial shareholders in business. The substantial shareholders and their 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 the
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 large shareholders’ company and other enterprises
controlled by large shareholders. The recruitment and dismissal of Directors are conducted through legal procedure
since the Company was listed and the manager has been appointed or dismissed by Board of Directors. The Board of
Directors and the Shareholders’ General Meeting have not received any interference of decisions on personnel
appointment and removal from the largest shareholders.
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 investments to the Company from largest shareholder are monetary assets and 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 Committee appointed general manager and fixed related function
departments. The Company had been totally independent from its large shareholders in organization structure. The
Company has its own office and production sites that are different from those of the large shareholders. The largest
shareholder and its related parties didn’t deliver any operation plan and order to the Company neither influence the
independence on management of the Company by any forms.
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 large shareholder or its subordinate units. The Company
had independent bank accounts separated from the large shareholders. The Company is independent taxpayer paid
taxes independently according the laws and didn’t pay mixed taxes with the large shareholders. The financial decision-
making of the Company was independent and the large shareholders never interfered the usage of the Company’s
capital. The Company never offered guarantee to their large shareholders and its subordinate units and other related
party. The largest shareholder and its related has never occupy or occupy disguised the capital.III. Horizontal competition
□ Applicable √ Not applicable
IV. Annual shareholders’ general meeting and extraordinary shareholders’ general meeting
convened in the report period
1. Annual Shareholders’ General Meeting in the report period
Session of meeting Type
Ratio of
investor
participation
Date
Date of
disclosure
Index of disclosure
The First Extraordinary General
Shareholders’ Meeting of 2020
Extraordinary
General
Shareholders’
Meeting
29.04% 2020-3-12 2020-3-13
Announcement No.:2020-016（www.cninfo.com.cn）
The Second Extraordinary
General Shareholders’ Meeting
of 2020
Extraordinary
General
Shareholders’
Meeting
29.18% 2020-4-16 2020-4-17
Announcement No.:2020-022（www.cninfo.com.cn）
Annual General Shareholders’
Meeting of 2019
Annual
General
Shareholders’
Meeting
28.91% 2020-5-21 2020-5-22
Announcement No.:2020-034（www.cninfo.com.cn）
The Third Extraordinary
General Shareholders’ Meeting
of 2020
Extraordinary
General
Shareholders’
Meeting
28.99% 2020-6-15 2020-6-16
Announcement No.:2020-048（www.cninfo.com.cn）
The Fourth Extraordinary
General Shareholders’ Meeting
of 2020
Extraordinary
General
Shareholders’
Meeting
29.67% 2020-7-23 2020-7-24
Announcement No.:2020-059（www.cninfo.com.cn）
The Fifth Extraordinary General
Shareholders’ Meeting of2020
Extraordinary
General
Shareholders’
Meeting
29.64% 2020-11-11 2020-11-12
Announcement No.:2020-071（www.cninfo.com.cn）
2. The preference shareholders convening the general meeting whose right to vote has been resumed
□ Applicable √ Not applicable
V. Responsibility performance of independent directors in the report period
1. The attending of independent directors to Board meetings and general shareholders’ meeting
The situation of independent directors attending the board of directors and shareholders' meetings
Name of
independent director
Times of Board
meeting supposed to
attend in the report
period
Times of
Presence
on the
scene
Times of
attending by
communication
way
Times of
entrusted
presence
Times
of
Absenc
e
Whether
absent the
Meeting for
the second
time in a row
or not
Times of
Presence
Zhu Guilong 16 2 14 0 0 No 5
Zhu Qianyu 16 0 16 0 0 No 0
Xu Nianhang 11 0 11 0 0 No 0
Zhan Weizai 5 1 4 0 0 No 1
Explanation of absence for the Board Meeting twice in a row
Not applicable
2. Objection for relevant events from independent directors
Whether independent directors came up with objection about the Company’s relevant matters or not
□ Yes √No
During the report period the independent directors did not raise objections to the Company's related matters.
3. Other explanation about responsibility performance of independent directors
Whether the opinions from independent directors were adopted or not
√Yes □ No
Explanation of the opinions from independent directors which were adopted or not adopted
In the report period independent directors of the Company attended the board meetings and general shareholders’
meetings conscientiously performed their duties and put forward constructive opinions or suggestions for the
development of the Company strictly according to the requirements of the Guidelines for Operation of the Listed
Companies on Main Board of Shenzhen Stock Exchange the Listing Rules of Shenzhen Stock Exchange Stock the
Guidelines for Establishment of Independent Director Mechanism for Listed Companies and the Article of Association.
Each independent director seriously deliberated all motions of the board of directors and gave independent opinions on
significant operating management issues general election of the board of directors distribution of profits Equity
incentive restricted stock repurchase and unlock issues related to non-public offering of A shares Engagement of audit
institution internal control construction and so on. The suggestions about the company of the independent directors
have been adopted and they have played an active role in safeguarding the interests of the company and minority
shareholders
VI. Duty performance of the special committees under the board during the reporting period
1. Performance of the audit committee of the Board
The Audit Committee of the Board of Directors of the Company is constituted with 5 directors and 3 of them are
independent directors. The convoker is independent director. During the report period according to demands of CSRC
and Shenzhen Stock Exchange and regulations of Rules of Procedure of the Audit Committee of the Board of Directors
Procedure for Annual Report Work of the Audit Committee the committee paid attention to the construction of
corporate internal control system audited the internal audit report and financial report periodically diligently and
faithfully. They performed the following duties:
①Deliberate the Company’s financial statement and issue opinions
During the reporting period in accordance with the requirements of the CSRC the Audit Committee reviewed the
relevant annual work plan for the audit of annual reports submitted by certified public accountants before the annual
audited certified public accountants entered the market and provided guidance opinions; At the same time the basis
principles and methods for the preparation of the Company's accounting statements are in compliance with the relevant
provisions of national laws and regulations and in all major respects they fairly reflect the financial status of the
Company on December 31 2020 and its operating results in 2020.
②Supervise the audit works conducted by the accountant firm
The Audit Committee communicated with the accounting firms and provides guidance and requirements for the annual
financial report audit work and the plans and arrangements for the internal control report audit work. After the CPA
came into the audit the members of the Audit Committee kept close contact with the Company and the main project
responsible personnel to understand the progress of the audit work and the concerns of the accountants and timely
feedback to the company’s relevant departments to ensure that the annual audit and information disclosure work was
conducted as scheduled.③ Summarize report on the audit works conducted by the accountant firm in previous year
Asia Pacific (Group) CPAs (special general partnership) strictly follows the China Auditing Standards and practices
diligently paying attention to the communication with the management and the audit committee which reflects strong
professional knowledge good professional ethics and risk awareness. The firm successfully completed the company’s
2020 financial statement audit work and internal control audit work and the audit quality is trustworthy.
2. Performance of the remuneration and examination committee of the Board
The remuneration and examination committee of the Board of Directors of the Company is constituted with 5 directors
and 3 of them are independent directors. The convoker is independent director.
According to regulations of Rules of Procedure of The Remuneration and Appraisal Committee the Remuneration and
Appraisal Committee makes examination on the disclosed remuneration of the directors supervisors and senior
executives and thought it accorded with the relevant laws and regulations of the remuneration and appraisal system of
the Company.②The remuneration and examination committee reviewed the proposals on the allowance of external supervisors and
the allowance of external directors (except for the incumbents of shareholder units) and reported the results to the board
of directors.③The remuneration and examination committee considered a bill to repurchase and cancel some restricted stock under
the restricted stock incentive program and reported the results to the Board.④The remuneration and examination committee deliberated the repurchase and cancellation of restricted stocks in the
restricted stock incentive plan the repurchase and cancellation of restricted stocks that did not meet the unlocking
conditions of the third unlocking period and other relevant proposals and reported the results of the review to the board
of directors.
3. Performance of the nomination committee of the Board
The nomination committee of the Board of Directors of the Company is constituted with 5 directors and 3 of them are
independent directors. The convoker is independent director.The nominating committee considered the motion on recommending candidates for the general election of the board of
directors and reported the result to the Board. Nomination committee of the Board performed evaluation on the work of
the Board and believed that the directors of the Board abided by the State laws administrative rules and regulation of
Article of Association since they took office. They attended or delegated to attend the Board Meeting and general
meeting of shareholders on time performed voting rights based on relevant regulations actively kept eyes on the
management situation of the Company and performed the duty of Directors diligently.
4. Performance of the strategy committee of the Board
The strategy committee of the Board of Directors of the Company is constituted with 5 directors and 2 of them are
independent directors.
As the special institution responsible for the long-term development strategy and significant investment decision-
making the strategy committee made earnest research on the significant decisions affecting the Company’s
development and issued relevant recommendations according to the procedure rules of the strategy committee. During
the reporting period the strategy committee considered on the profit distribution plan and held the view that the major
issues above confirm to the requirement of the Company Law the Enterprise Accounting Principles and the Articles of
Association and agreed to submit the same to the board and general meeting for consideration. At the same time the
strategy committee considered issues concerning significant operation management guarantee for controlling
subsidiaries related transaction and investment projects of the Company which were submitted to the board for
consideration.VII. Performance of the Supervisory Committee
During the report period the Supervisory Committee found whether there was risk in the Company in the supervisory
activities.□ Yes √ No
The Supervisory Committee had no objection on the supervised events during the report period.VIII. Performance examination and incentives of senior management
In order to maximize the company's operating efficiency fully mobilize the enthusiasm of the management team to
ensure the completion of the company's various operational indicators the board of directors agreed to adopt an annual
salary system for the company's management team. The annual salary system consists of a fixed annual salary and
performance bonus. The performance bonus is an incentive income. The company conducts accounting according to the
overall business situation and individual assessment. The specific payment rules are implemented according to the
company's annual assessment plan. These measures have been implemented since 2018.IX. Internal Control
1. Particulars about significant defects found in the internal control during the report period
□ Yes √ No
2. Self-appraisal report of internal control
Disclosure date of full text of self-appraisal report of internal
control
April 15 2021
Disclosure index of full text of self-appraisal report of internal
controlMore details found in “Report of Internal Control
of CSG for year of 2020” published on Juchao
Website (http://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 Company's consolidated
financial statements
94%
The ratio of the operating income of the units included in the scope
of evaluation to the operating income of the Company's
consolidated financial statements
95%
Standards of Defects Evaluation
Category Financial Reports Non-financial Reports
Qualitative criteria
Major defects:
A. Fraud of directors supervisors and senior
management;
B. Ineffective control environment;
C. Invalid internal supervision;
D. Major internal control defects found and
reported to the management but haven’t been
corrected after a reasonable time;
E. Material misstatements are found by the
external audit but haven’t been found in the
process of internal control;
F. Financial reports submitted during the
reporting period completely cannot meet the
needs and are severely punished by regulatory
agencies;
G. Other major defects that may affect the
report users’ correct judgment.Significant defects:
A. Defects or invalidation of important
financial control procedures;
B. Significant misstatements are found by the
external audit but haven’t been found in the
process of 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:
A. Major decision-making mistakes caused
by decision-making process of key business;
B. Serious violation of state laws and
regulations;
C. Serious brain drain of senior and middle
management and or personnel at key
technological posts;
D. Major or significant defects found in the
internal control evaluation have not been
rectified and reformed;
E. The company's major negative news
frequently appears on media;
Significant defects:
A. Big deviation of execution caused by
executive routine of key business;
B. Regulatory authorities impose large
amount of fines because the violation of laws
and regulations;
C. Defects or invalidation of important
business’ internal control procedures;
Common defects: Other control defects
except for major defects and significant
defects.Quantitative standard
Major defects:
A. Amount of net profit affected by
misstatements (based on consolidated
statements): amount affected by misstatements
is equal to or greater than 3% of net profit and
the absolute amount is no less than 30 million
yuan;
B. Amount of assets and liabilities affected by
misstatements (based on consolidated
statements): amount affected by misstatements
is equal to or greater than 1% of total assets.Significant defects:
A. Amount of net profit affected by
misstatements (based on consolidated
statements): not belong to major defects and
amount affected by misstatements is equal to
or greater than 2% of net profit and the
absolute amount is no less than 20 million
yuan;
B. Amount of assets and liabilities affected by
misstatements (based on consolidated
statements): amount affected by misstatements
is equal to or greater than 0.5% of total assets
but less than 1% of total assets.
Common defects: Defects except for major
and significant defects.Major defects:
A. Amount of direct property loss: the direct
loss amount is equal to or greater than 30
million yuan;
B. Group's reputation: major negative news
spreads in numerous business areas or is
widely reported by national media and causes
significant damages to the corporate
reputation which takes more than six months
to be restored.Significant defects:
A. Amount of direct property loss: the direct
loss amount is equal to or greater than 20
million yuan but less than 30 million yuan;
B. Group's reputation: negative news spreads
inside the industry or is reported or focused
by local media and causes certain damages to
the corporate reputation which takes more
than three months but less than six months to
be restored.
Common defects:
A. Amount of direct property loss: defects
except for major and significant defects.
B. Group's reputation: negative news spreads
within the group and causes 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
X. 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 Asia Pacific (Group) CPAs (special general partnership) (hereinafter referred to as AP) audited the
effectiveness of internal control over financial statements of the Company up to 31 December 2020 issued AP Ya-
Kuai- A-Zhuan-Zi （2021）No. 01320010 Internal Control Audit Report and made the following opinions: AP
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 2020.
Disclosure of internal control
audit report
Disclosure
Date of disclosing the internal
control audit reports
15 April 2021
Disclosure index of internal
control audit report
More details can be found in 2020 Internal Control Audit Report of CSG released on
Juchao Website (http://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
Section IX. Corporate Bonds
Whether the company has a public offering and is listed on the stock exchange and the company bonds that have not
been fully paid or matured on the date of approval of the annual report
Yes
I.Basic information about corporate bonds
Name
Short
name
Bond
code
Issue date
Maturity
date
Bond
balance
(RMB 0000)
Interest
rate
Way of repayment of principal and
interest
CSG Holding
Co. Ltd.
Public issue of
corporate
bonds to
qualified
investors in
2020 (phase I)
20 CSG
01
149079
2020-3-24
to 2020-3-
25
2023-3-25 200000 6%
Use simple interest to calculate the
annual interest excluding compound
interest. Interest is paid once a year
principal is repaid once due and the
last installment of interest is paid
together with the principal.
Corporate bond listing
or transfer trading place
Shenzhen Stock Exchange
Appropriate
arrangements for
investors
Corporate bonds shall be publicly issued to qualified institutional investors who have opened
qualified A-share securities accounts in the Shenzhen branch of China securities registration
and clearing Co. Ltd. in accordance with the provisions of the "measures for the
administration of corporate bond issuance and trading".Interest payment and
encashment of
corporate bonds during
the reporting period
The bond has not entered the first interest payment date.Implementation of the
special provisions
including option and
exchangeable terms of
issuers or investors
attached to corporate
bonds and the relevant
provisions during the
report period (if
applicable)
Not applicable
II. Informantion of bond trustee and credit rating institution
Bond trustee:
Name
Western Securities
Co. Ltd
Office
adds.Room 10000 building 8 319
dongxin street xincheng district xi
'an city shaanxi province
Contact
person
Lv Yue Tel. 010-68086722
Credit ratinginstitution which tracks rating corporate bonds in the report period:
Name
China Chengxin
International Credit
Rating Co. Ltd.Office
adds.
Building 5 Yinhe SOHO 2 nanzhugan Hutong Chaoyang mennei street
Dongcheng District Beijing
If bond trustee and credit rating institution
engaged by the Company changed in the
The bond rating agency China Chengxin Securities Rating Co. Ltd.(hereinafter referred to as "CCXR") is a wholly-owned subsidiary
report period explain the reason of the
change performance of the procedure and
the impact on the interest of investors etc. (if
applicable)
ofChina Chengxin International Credit Rating Co. Ltd. (hereinafter
referred to as "CCXI"). According to the notice of CCXI on February
25 2020 China credit international received the reply of China securities
regulatory commission on the approval of China Chengxin International
Credit Rating Co. Ltd. to engage in the credit rating business of the
securities market (license no. [2020] 267).According to this reply CCXI
carried out credit rating business of securities market from February 26
2020;Credit rating business in securities market of CCXR a wholly-
owned subsidiary of CCXI is inherited by CCXI.III. The use of fund raised by corporate bonds
The use of fund raised by corporate bonds and performance of the
procedure
The raised fund is in strict accordance with the
relevant provisions.
Balance at the end of year (RMB0000) 0
The operation of the special account for raised fund
The operation of the special account for raised
fund is in strictly accordance with the relevant
provisions of prospectus commitment.Whether the use of raised fund is consistent with the purpose plan of
use and other agreements of prospectus commitment
Consistent
IV. Information of the rating of corporation bonds
According to The Tracking Rating Report of CSG Issuing Corporate Bonds To Qualified Investors In 2020 (Phase I)
([2020] tracking 0596)issued by CCXI on June 10 2020 the Company's subject credit rating is AA+ rating outlook is
stable and the bonds credit rating of the current period is evaluated as AA+.
CCXI will conduct tracking rating during the term of validity of the bonds: it will complete the regular tracking rating
of the year within two months after the release of the Company's annual report and disclose the bond tracking rating
report of the previous year within six months from the end of each fiscal year according to the listing rules; Issue
random tracking ratings as appropriate. The rating results and other relevant information will be published on the
website of China credit international (www.ccxi.com.cn) and the website of the exchange to draw the attention of
investors.V. Trust mechanism debt repayment plans and other debt repayment safeguards of
corporation bonds
During the report period the trust mechanism debt repayment plans and other debt repayment safeguards have not been
changed which are the same as the relevant commitments of raising instruction manual.
I. Credit promotion measures
The bonds are unsecured.II. Debt repayment plan
"20 CSG 01" will pay interest once a year during its duration and the principal will be repaid once upon maturity. The
interest of the last period will be paid together with the repayment of the principal. The payment date of "20 CSG 01" is
March 25 of each year from 2021 to 2023 and the payment date is March 25 2023 (in case of a statutory holiday or rest
day it will be postponed to the first trading day thereafter).The Company established the annual and monthly plan for application of funds based on the payment arrangement for
coming due principal and interest of the corporation bonds reasonably managed and allocated the funds so as to make
sure the due principal and interest be paid in time. The capital sources for paying the corporation bonds in the report
period were mainly the cash flow generated by the Company’s operating activities and the bank loans. The financial
structure of the company remains stable and the stable cash inflow provides a strong guarantee for the repayment of
principal and interest of the company's bonds. The repayment plan has not changed and is consistent with the relevant
commitments in the prospectus.Ⅲ. Repayment safeguards
In order to fully and effectively maintained the interests of the bondholders the Company has made a series plans for
the timely and sufficient repayment for bonds in the report period including confirming the specialized departments and
personnel arranging the funds for repayment strictly implement the use of the raised funds give full play to the role of
bond trustee set the rules for bondholders' meetings strictly fulfil the obligation of information disclosure so as to
develop a set of safeguards to ensure that bonds are repaid safely. The guarantee measures for debt repayment have not
changed and are consistent with the relevant commitments in the prospectus.VI. Information about the bondholder meeting during the reporting period
There was no bond-holder meeting of "20 CSG 01" convened in the report period.VII. Information about the obligations fulfilled by the bond trustee in the report period
As the bond trustee of “20 CSG 01” Western Securities Co. Ltd. strictly complies with relevant laws and regulations
and the provisions of the Prospectus and Bond Trustee Management Agreement to perform the duties of the bond
trustee and continues to pay attention to the company’s daily routine. Production and operation and financial status
supervise the use of raised funds the operation of special accounts and the repayment of principal and interest and
strive to safeguard the legitimate rights and interests of bondholders. The trustee has no conflict of interest when
performing its duties.VIII. The key accounting data and financial indicators of the latest two years to the end of the report period
RMB 0000
Item 2020 2019 Rate of change over the same period
Earnings before interest tax
depreciation and amortiation
230229 195447 17.8%
Current ratio 121% 74% 47%
Assets liabilities rate 41% 46% -5%
Quick ratio 100% 61% 39%
Total debt ratio of EBITDA 32% 23% 9%
Interest coverage ratio 4.88 2.99 63.21%
Cash interest coverage ratio 11.83 8.91 32.77%
Interest coverage ratio of EBITDA 8.15 5.95 36.97%
Loan repayment rate 100% 100%
Interest coverage ratio 100% 100%
The above accounting data and financial indicators year-on-year change more than 30% of the main reasons
√Applicable □Not applicable
Current ratio: Mainly due to the decrease in current liabilities.
Quick ratio: Mainly due to the decrease in current liabilities.Interest coverage ratio: Mainly due to the increase in net profit and the decrease in interest expenses.
Cash interest coverage ratio: Mainly due to the increase in net cash flow from operating activities and the decrease in
interest expenses.Interest coverage ratio of EBITDA: Mainly due to the increase in net profit.IX. Payment of principle and interest for other bonds and debt financing instruments during
the report period
On May 4 2020 the Company paid the second installment of the first phase of 2018 medium-term notes with an annual
interest rate of 7% and a total amount of RMB 800 million issued on May 4 2018.On July 14 2020 the Company completed the payment of the principal and interest of the first phase of 2015 medium-
term notes with a total amount of RMB 1.2 billion and an annual interest rate of 4.94% issued on July 14 2015.On November 21 2020 the Company completed the payment of the principal and interest of the first phase of 2020
ultra short term financing bonds with a total amount of RMB 300 million and an annual interest rate of 4% issued on
February 21 2020.
X. Information about of bank credit and use as well as repayment of bank loans during the
report period
The Company's credit status was good during the report period and it established long-term and stable credit business
relationships with banking institutions. As of December 31 2020 the Company has obtained a bank credit of
RMB14.352 billion has used a quota of RMB2.270 billion and has an available quota of RMB12.082 billion.
XI. Information about fulfillment of the stipulations or commitments specified in the
Prospectus of the issuance of the bonds during the report period
The Company strictly abides by the relevant provisions in the "20 CSG 01" bond prospectus and fulfils the relevant
commitments.XII. Major matters occurring during the report period
On April 8 2020 the Company disclosed the “Announcement on Cumulative New loans in 2020of CSG on the websiteof Shenzhen Stock Exchange. The above-mentioned new loans are required by the Company's business development
conform to the provisions of relevant laws and regulations belong to the normal business activities of the Company
and will not have a significant adverse impact on the Company's production and operation and debt paying ability. The
bond trustee Western Securities Co. Ltd. disclosed the Interim Report on entrusted management affairs of CSG Issuing
Corporate Bonds To Qualified Investors In 2020 (Phase I) on the website of Shenzhen Stock Exchange for the aboved
matters simultaneously.XIII. Whether there is a guarantor of corporate bonds
□ Yes √ No
Section X. Financial Report
I. Report of the Auditors
Type of Auditor’s Opinion Standard and unqualified
Issue date of Report of the Auditors 13April 2021
Name of Auditor’s organization Asia Pacific (Group) CPAs (special general partnership)
Reference number of Report of the Auditors Ya-Kuai- A-Shen-Zi (2021) No. 01320009
Name of CPA Zhou Xianhong Sun Weijie
Auditor’s Report
Ya-Kuai- Shen-Zi (2021) No. 01320009
To the shareholders of CSG Holding Co. Ltd.I. Opinion
We have audited the accompanying financial statements of CSG Holding Co. Ltd.(hereinafter“the Company”) which comprise the Separate/Consolidated Statements of
Financial Position as at 31 December 2020 and the Separate/Consolidated Statements of
profit or loss the Separate/Consolidated Statements of changes in equity and the
Separate/Consolidated Statements of cash flows for the year then ended and the notes to
the financial statements.In our opinion the financial statements attached were prepared in line with the regulations
of Accounting Standards for Business Enterprises in all significant aspects which gave a
true and fair view of the consolidated and parent financial position of the Company as at
Dec. 31 2020 and the consolidated and parent business performance and cash flow of the
Company for 2020.
II. Basis of Opinion
We conducted our audit in accordance with Standards on Auditing for Certified Public
Accountants. Our responsibility is to express an opinion on these financial statements
based on our audit. Those standards require that we comply with ethical requirements and
plan and perform the audit to obtain reasonable assurance about whether the financial
statements are free from material misstatement. We believe that the audit evidence we
have obtained is sufficient and appropriate to provide a basis for our audit opinion.III. Key audit matters
Key audit matters are those matters that in our professional judgement were of most
significance in our audit of the financial statements of 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 and we do not provide a separate opinion on these matters.We determine the followings are key audit matters in need of communication in our report.I) Impairment of Long-term assets
1. Matter description
As disclosed in the financial statements by 31st December 2020 Impairment provision
for construction in progress of The Company was RMB 639.21 million yuan Impairment
provision the fixed assets was RMB 835.93 million yuan. As the domestic market is highly
competitive in the polycrystalline silicon industry and the cost of subsidiary Yichang Silicon
Materials Company is high the management of the company (hereinafter referred to as
the management layer) has identified and conducted impairment tests for some related
assets which show a sign of impairment. During the test the management has engaged
an independent valuer to assist in the identification and valuation of the recoverable
amount of relevant asset and compared it with the book value of the corresponding assets.The results showed that the recoverable amount of related assets was lower than its book
value. According to the differences in amount the provision for impairment of fixed assets
and construction in progress should be noted by the company. The impairment test
involves confirming key parameters including discount rate and assumptions for future
administration such as the revenue growth rate the gross profit margin etc. Due to the
procedure of related assets impairment involved significant decisions and predictions
made by the management team we therefore have confirmed this as a key audit matter.
2. Countermeasures of Audit
1 Understood and tested the effectiveness of design and operation of CSG internal control
system relating to the provision for impairment of the fixed assets and the construction in
progress;
2 Checked the fixed asset and construction in progress in field survey and implemented of
physical procedures
3 Evaluated management's identification of the relevant asset groups assertions and the
amount of assets allocated to each asset group and assessed the reasonableness of
management's method of impairment of related assets.
4 Communicated with management and evaluated impairment of fixed assets and
construction in progress key assumptions Valuation method Cash flow forecast and
other key parameters for obtaining significant management estimates and judgments such
as the revenue growth rate the gross profit margin the expense growth rate and the
discount rate etc to be reviewed;
5 Assessed the professional competency objectivity and independence of the third
parties of independent valuer and reviewed the evaluation methods evaluation
assumptions discount rates and other key parameters of valuation reports and reviewed
the reasonableness of the calculation of evaluation data;
6 Checked the provision of impairment of fixed asset and construction in progress relevant
presents and disclosures whether is appropriate and complete in the presentation of
financial statements following accounting standards.II) Impairment of Goodwill
1. Matter description
As disclosed in the report: by 31st December 2020 the goodwill of The Company is the
originally valued at RMB 397.39 million yuan mainly included goodwill RMB 389.49 million
yuan from the acquisition of Shenzhen CSG Display Device Technology Co. Ltd.The
management conducts an impairment test on goodwill at least once a year. In this year’s
test the management has engaged an independent valuer to assist in the identification
and valuation of the recoverable amount of asset groups. The management tests goodwill
for impairment by estimating the recoverable amounts of the asset groups that
goodwill is allocated to and then comparing these recoverable amounts with the carrying
value of those asset groups and goodwill . The result of the impairment test indicated
that the recoverable amount of the relevant asset groups of goodwill is lower than the book
value and the provision for goodwill impairment should be noted by company. As the
goodwill impairment test involved a complex process and the significant judgments of the
company’s management we consider this matter as key audit matters.
2. Countermeasures of Audit
1 Understood and evaluated the effectiveness of design and operation of the internal
control system of the provision of impairment in goodwill;
2 Compared the relevant asset groups actual results in 2020 with their corresponding
estimates made in the prior year to evaluate the reliability of the management’s estimates
on cash flows;
3 Obtained and reviewed the report of goodwill impairment issued by the external
valuerand assessed the independence professional competency and objectivity of the
independent valuer;
4 Discussed with the management compared and analyzed historical data and industry
level of relevant asset groups; evaluated key assumptions and assessed its rationality
including the key parameters for obtaining significant management estimates and
judgments such as the revenue growth rate the gross profit margin the expense growth
rate and the discount rate etc;
5 Checked whether the goodwill was allocated to each of the cash-generating units in a
reasonable methods; Checked the goodwill impairment test model calculation accuracy ;
6 Checked whether the impairment of goodwill have been properly presented and
disclosed in the financial statements as required.IV. Other information
The management layer of the Company shall be responsible for other information
including the information covered in the financial report but excludes financial statements
and our audit report.Our audit opinion on financial statements does not include other information; we will not
make the authentication conclusion on other information in any form.In connection with our audit of the financial statements our responsibility is to read the
other information and in doing so consider whether the other information is materially
inconsistent with the financial statements or our knowledge obtained in the audit or
otherwise appears to be materially misstated.If based on the work we have performed we conclude that there is a material
misstatement of this other information we are required to report that fact. We have
nothing to report in this regard.V. Responsibilities of Managementand Governance for Financial Statements
Management of the Company is responsible for the preparation and fair presentation of
these financial statements in accordance with the requirements of the Accounting
Standards for Business Enterprises and for such internal control as management.determines is necessary to enable the preparation of financial statements that are free
from material misstatement whether due to fraud or error.In preparing financial statements the management layer is responsible for assessing the
company's sustained business capability disclosing matters related to continue operating，using the going-concern assumption unless management either intends.to liquidate the Company or to cease operations or has no realistic alternative but to do so.The governance layer is responsible for supervising the financial reporting process of the
company.VI. Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance as to whether there are no major
misstatements due to fraud or errors in the overall financial statements and to issue an
audit report containing audit opinions. Reasonable assurance is the high-level assurance
but it can’t assure that a certain major misstatement can be always found when auditing
according to the audit standard. The misstatement may be caused by malpractices or error.If the misstatements within the rational expectations may affect the economic decision of
the financial statement user according to the financial statement it shall be deemed that
the misstatement is significant.
During the process of conducting the audit work according to audit standards we apply
professional judgment and keep professional skepticism. Meanwhile we also perform the
following tasks:
(1) Identify and assess the risks of material misstatement of the financial statements
whether due to fraud or error design and perform audit procedures responsive to those
risks and obtain audit evidence that is sufficient and appropriate to provide a basis for our
opinion. The risk of not detecting a material misstatement resulting from fraud is higher
than for one resulting from error as fraud may involve collusion forgery intentional
omissions misrepresentations or the override of internal control.
(2) Understand the internal control related to audit so as to design appropriate audit
procedures.
(3)Estimate the appropriateness of the accounting policies selected by the management
layer and the rationality of making accounting estimate and relevant disclosures.
(4)Draw a conclusion on the appropriateness of the going concern assumption used by the
management layer. Meanwhile according to the obtained audit evidenceit may cause to
come to the conclusion that there are substantial doubtable events or major uncertainty for
the sustainable operation ability of the Company. In case that we come to the conclusion
that there is a significant uncertainty the audit standards
require us to remind the users of the statements to pay attention to relevant disclosures in
the financial statements in the audit report; In case of any insufficient disclosure we shall
give modified opinions. Our conclusion is based on the available information up to the
audit report day. However the future events or circumstances may cause the Company
cannot continue to operate.
(5) Estimate the overall presentation structure and content (disclosure included) of the
financial statements and Estimate whether the financial statements fairly reflect relevant
transactions and matters.
(6) Acquire adequate and appropriate audit evidences on the financial information of the
entity or business activities of the Company and give audit opinions on the consolidated
financial statements. We are responsible for guiding supervising and executing the audit
of the Group and take all responsibilities for the audit opinions.We communicate with the governance layer about the audit scope schedule significant
audit findings and other matters within the plan including the noteworthy internal control
defects recognized by us during the audit.We also provide statements to the governance layer on the compliance with the
professional ethics requirement related to the independence and communicate with
the governance layer on all relationships and other matters that may reasonably be
considered to affect our independence as well as relevant preventive measures.
From the matters that we have communicated with the governance layer we confirm the
most important matters for the audit of the current financial statements and thus constitute
the key audit matters. We describe these matters in our audit report unless laws and
regulations prohibit the public disclosure of these matters or in rare cases if it is
reasonably expected that the negative consequences of communicating a matter in the
audit report will surpass the benefits in the public interests we confirm that the matter shall
not be communicated in the audit report.
Asia-Pacific (Group)
Certified Public Accountants
Certified Public Accountant of China
(special general partnership)
Beijing China Certified Public Accountant of China
13April 2021
CSG HOLDING CO. LTD.
CONSOLIDATED AND COMPANY’S BALANCE SHEETS
AS AT 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
31 December 2020 31 December 2019 31 December 2020 31 December 2019
ASSETS Note Consolidated Consolidated Company Company
Current assets
Cash at bank and on hand 4(1) 2125788903 1986980418 1072875571 1560798731
Notes receivable 4(2) 207966892 297023380 - -
Accounts receivable 4(3) 681467133 649681177 - -
Receivables Financing 4(4) 382527782 258296826 - -
Advances to suppliers 4(5) 85928641 78196027 1650184 1799222
Other receivables 4(6)/17(1) 200969854 202854864 3803908369 3179500967
Inventories 4(7) 815156318 812321690 - -
Other current assets 4(8) 140031544 447995931 66321 300000000
Total current assets 4639837067 4733350313 4878500445 5042098920
Non-current assets
Long-term receivables 17(3) - - - 1200000000
Long-term equity investments 17(2) - - 5844507870 5079465574
Investment properties 4(9) 383084500 - - -
Fixed assets 4(10) 9145644569 9783037301 19769193 19550442
Construction in progress 4(11) 1893380611 1902140035 - -
Intangible assets 4(12) 1139718255 1044826287 140836 370484
Development expenditure 4(12) 49153407 85240356 - -
Goodwill 4(13) 233375693 315097756 - -
Long-term prepaid expenses 10381937 11351431 - -
Deferred tax assets 4(14) 194979414 205792587 - -
Other non-current assets 4(15) 193359445 120399893 4546275 1407535
Total non-current assets 13243077831 13467885646 5868964174 6300794035
TOTAL ASSETS 17882914898 18201235959 10747464619 11342892955
CSG HOLDING CO. LTD.
CONSOLIDATED AND COMPANY’S BALANCE SHEETS (CONT'D)
AS AT 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
31 December 2020 31 December 2019 31 December 2020 31 December 2019
LIABILITIES AND OWNERS'
EQUITY Note Consolidated Consolidated Company Company
Current liabilities
Short-term borrowings 4(17) 352895571 2240969137 49800000 1687000000
Notes payable 4(18) 144851192 232063968 - 170000000
Accounts payable 4(19) 1237833051 1100531779 249721 236346
Advances from customers 4(20) - 292803811 - -
Contract liabilities 4(21) 296776624 - - -
Employee benefits payable 4(22) 342352166 337866246 46504458 53040982
Taxes payable 4(23) 194921071 115425044 9457159 2901358
Other payables 4(24) 17(4) 287332992 351374775 1002135702 1643156452
Current portion of non-
current liabilities 4(25) 927531709 1712456928 800000000 1200000000
Other current liabilities 4(26) 34586292 300000 - -
Total current liabilities 3819080668 6383791688 1908147040 4756335138
Non-current liabilities
Long-term borrowings 4(27) 853253983 1320225000 700000000 1130000000
Debentures payable 4(28) 1994020348 - 1994020348 -
Long-term payables 4(29) - 87240529 - -
Deferred tax liabilities 4(14) 102619932 30197657 - -
Deferred income 4(30) 498056081 513925557 180496249 182386537
Total non-current liabilities 3447950344 1951588743 2874516597 1312386537
Total liabilities 7267031012 8335380431 4782663637 6068721675
Shareholders’ equity
Share capital 4(31) 3070692107 3106915005 3070692107 3106915005
Capital surplus 4(32) 596997085 683219358 741824399 828046672
Less:Treasury shares 4(33) - (118066397) - (118066397)
Other comprehensive income 4(34) 161816819 6565864 - -
Special reserve 4(35) 10269002 11102921 - -
Surplus reserve 4(36) 1036948422 946251286 1051493782 960796646
Undistributed profits 4(37) 5336266412 4859600841 1100790694 496479354
Total equity attributable to
shareholders of parent company 10212989847 9495588878 5964800982 5274171280
Minority interests 402894039 370266650 - -
Total shareholders' equity 10615883886 9865855528 5964800982 5274171280
TOTAL LIABILITIES AND
SHAREHOLDERS’ EQUITY 17882914898 18201235959 10747464619 11342892955
The accompanying notes form are attached as an integral part of these financial statements.Legal representative: Principal in charge of accounting: Head of accounting department:
CSG HOLDING CO. LTD.
CONSOLIDATED AND COMPANY’S INCOME STATEMENTS
AS AT 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
The accompanying notes form are attached as an integral part of these financial statements.Legal representative: Principal in charge of accounting: Head of accounting department:
2020 2019 2020 2019
Item Note Consolidated Consolidated Company Company
Revenue 4(38) 10671253445 10472028099 217297219 82205712
Less: Cost of sales 4(38) (7444465731) (7743129614) - -
Taxes and surcharges 4(39) (121898522) (115813768) (2292619) (639077)
Selling and distribution expenses 4(40) (233918938) (389269235) - -
General and administrative expenses 4(41) (666976561) (602590650) (273626323) (131340380)
Reseach and development expenses 4(42) (404842498) (366871283) (1047802) (794864)
Financial expenses - net 4(43) (224011920) (290417403) (167576428) (121920540)
Inclouding: interest expenses (273308059) (319591750) (214088327) (151864568)
Interest income 53404661 36942509 49221299 32612794
Add：Other Income 4(47) 99560400 184131420 4228915 3775711
Gains/(Losses) arising from changes in fair
value 4(45) 179911200 - - -
Investment income
4(46)17(
5) 2654504 - 1136439598 390105325
Credit impairment loss 4(48) (5722619) (20114033) (1571191) -
Asset impairment loss 4(49) (738508094) (463324685) - 51454
Income on disposal assets 4(50) (1158984) (909968) 15761 502000
Operating profit 1111875682 663718880 911867130 221945341
Add: Non-operating revenue 4(51) 14369839 7827834 - 2403225
Less: Non-operating expenses 4(52) (20554395) (9440087) (4895769) (4889460)
Total profit 1105691126 662106627 906971361 219459106
Less: Income tax (expenses)/revenue 4(53) (293738145) (101687050) -
Net profit 811952981 560419577 906971361 219459106
（一）Classified by continuous operation:
Net income from continuing operations (“-” for net
loss) 811952981 560419577 906971361 219459106
Net income from discontinued operations (“-” for net
loss) - - - -
（二）Classified by equity ownership:
Attributable to shareholders of parentcompany 779325592 536430818 - -
Minority interests 32627389 23988759 - -
Other comprehensive income net after tax 155250955 1485630 - -
Other comprehensive income net after tax
attributable to shareholders of parentcompany 155250955 1485630 - -
Other comprehensive income items which will
be reclassified subsequently to profit or loss 155250955
1485630 - -
Differences on translation of foreign currency
financial statements (5900842)
1485630 - -
Income generated when self-property and land use
rights are converted into investment property 161151797
- - -
Other comprehensive income net after tax
attributable to minority interests
- - - -
Total comprehensive income 967203936 561905207 906971361 219459106
Total comprehensive income attributable to
shareholders of parent company 934576547
537916448
Total comprehensive income attributable to
minority interests 32627389
23988759
Earnings per share 4(54)
Basic earnings per share (RMB Yuan) 4(54) 0.25 0.17
Diluted earnings per share (RMB Yuan) 4(54) 0.25 0.17
CSG HOLDING CO. LTD.
CONSOLIDATED AND COMPANY’S CASH FLOW STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2020 2019 2020 2019
Item Note Consolidated Consolidated Company Company
1. Cash flows from operating activities
Cash received from sales of goods or rendering of
services 11736154948 11615107734 223086978 74350543
Refund of taxes and surcharges 61780834 24913216 613918 582881
Cash received relating to other operating activities 4(55)(a) 177764210 158462125 58247245 51436379
Sub-total of cash inflows 11975699992 11798483075 281948141 126369803
Cash paid for goods and services (6674993246) (6831844733) - -
Cash paid to and on behalf of employees (1377255224) (1316636342) (255127287) (109657156)
Payments of taxes and surcharges (769776963) (667769135) (8844083) (2766954)
Cash paid relating to other operating activities 4(55)(b) (423054923) (603196545) (30178208) (34547014)
Sub-total of cash outflows (9245080356) (9419446755) (294149578) (146971124)
Net cash flows from/(used in) operating activities 2730619636 2379036320 (12201437) (20601321)
2. Cash flows from investing activities
Cash received from returns on investments - - 411387134 -
Cash received from returns on invest income 2654504 - 862091239 390105325
Net cash received from disposal of fixed assets
intangible assets and other long-term assets 1887056 940791 10571 2000
Cash received relating to other investing activities 4(55)(c) 435177324 36649460 300000000 -
Sub-total of cash inflows 439718884 37590251 1573488944 390107325
Cash paid to acquire fixed assets intangible assets
and other long-term assets (1110769762) (715488350) (8306897) (5044017)
Cash paid to acquire investments - - (1151168328) (131402000)
Cash paid relating to other investing activities 4(55)(d) (118741948) (55177375) - (86952)
Sub-total of cash outflows (1229511710) (770665725) (1159475225) (136532969)
Net cash flows (used in)/from investing activities (789792826) (733075474) 414013719 253574356
3. Cash flows from financing activities
Cash received from borrowings 2277466685 3271013352 1582799801 2675000000
Cash received from issuing debentures 1991680000 - 1991680000 -
Cash received relating to other financing activities 4(55)(e) 153698226 200000000 74599652 -
Sub-total of cash inflows 4422844911 3471013352 3649079453 2675000000
Cash repayments of borrowings (5024614676) (3712064157) (4049999801) (2658000000)
Cash payments for interest expenses and
distribution of dividends or profits (438591829) (468314362) (336840490) (232336010)
Cash payments relating to other financing activities 4(55)(f) (604225442) (1330791703) - (309952407)
Sub-total of cash outflows (6067431947) (5511170222) (4386840291) (3200288417)
Net cash flows (used in)/from financing activities (1644587036) (2040156870) (737760838) (525288417)
4. Effect of foreign exchange rate changes on cash (4046608) 904141 (66943) 16911
5. Net increase/(decrease) in cash and cash
equivalents 4(56)(b) 292193166 (393291883) (336015499) (292298471)
Add: Cash and cash equivalents at beginning of year 1831835030 2225126913 1407215863 1699514334
6. Cash and cash equivalents at end of year 4(56)(c) 2124028196 1831835030 1071200364 1407215863
The accompanying notes form are attached as an integral part of these financial statements.Legal representative: Principal in charge of accounting: Head of accounting department:
CSG HOLDING CO. LTD.
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
Attributable to shareholders of parentcompany
Item Share capital Capital surplus
Less: Treasury
share
Other
comprehens
ive income
Special
reserve
Surplus
reserve
Undistributed
profits Sub-total
Minority
interests
Total
shareholders'
equity
Note 4(31) 4(32) 4(33) 4(34) 4(35) 4(36) 4(37)
Balance at 1 January 2019 2863277201 1095339421 (277180983) 5080234 6068600 924305375 4486264723 9103154571 346277891 9449432462
Movements for the year ended 31
December 2019
Total comprehensive income
Net profit - - - - - - 536430818 536430818 23988759 560419577
Other comprehensive income 4(34) - - - 1485630 - - - 1485630 - 1485630
Total comprehensive income - - - 1485630 - - 536430818 537916448 23988759 561905207
Capital contribution and
withdrawal by shareholders (38925482) (129556777) 159114586 - - - - (9367673) - (9367673)
Share-based payments (38925482) (129556777) 159114586 - - - - (9367673) - (9367673)
Profit distribution - - - - - 21945911 (163094700) (141148789) - (141148789)
Appropriation to surplus
reserve
4(36) - - - - - 21945911 (21945911) - - -
Distribution to the
shareholders 4(37) - - - - - - (141148789) (141148789) - (141148789)
Special reserve - - - - 5034321 - - 5034321 - 5034321
Special reserve appropriate 4(35) - - - - 7293766 - - 7293766 - 7293766
Special reserve used 4(35) - - - - (2259445) - - (2259445) - (2259445)
Internal transfer of shareholders'
equity 282563286 (282563286) - - - - - - - -
Capital reserve to share capital 282563286 (282563286) - - - - - - - -
Balance at 31 December 2019 3106915005 683219358 (118066397) 6565864 11102921 946251286 4859600841 9495588878 370266650 9865855528
CSG HOLDING CO. LTD.
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY (CONT’D)
FOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
Attributable to shareholders of parentcompany
Item Share capital Capital surplus
Less: Treasury
share
Other
comprehensi
ve income
Special
reserve
Surplus
reserve
Undistributed
profits Sub-total
Minority
interests
Total
shareholders'
equity
Note 4(31) 4(32) 4(33) 4(34) 4(35) 4(36) 4(37)
Balance at 1 January 2020 3106915005 683219358 (118066397) 6565864
11102921 946251286
4859600841 9495588878
370266650 9865855528
Movements for the year ended 31
December 2020
Total comprehensive income
Net profit - - - - - - 779325592 779325592 32627389 811952981
Other comprehensive income 4(34) - - - 155250955 - - - 155250955 - 155250955
Total comprehensive income - - - 155250955 - - 779325592 934576547 32627389 967203936
Capital increase or decrease
from shareholder (36222898) (86222273) 118066397 - - - - (4378774) - (4378774)
Share-based payments (36222898) (86222273) 118066397 - - - - (4378774) - (4378774)
Profit distribution - - - - - 90697136 (302660021) (211962885) - (211962885)
Appropriation to surplus
reserve
4(36) - - - - - 90697136 (90697136) - - -
Distribution to the
shareholders 4(37) - - - - - - (211962885) (211962885) - (211962885)
Special reserve - - - - (833919) - - (833919) - (833919)
Special reserve appropriate 4(35) - - - - - - - - - -
Special reserve used 4(35) - - - - (833919) - - (833919) - (833919)
Internal transfer of
shareholders' equity - - - - - - - - - -
Capital reserve to share capital - - - - - - - - - -
Balance at 31 December 2020
3070692107 596997085 - 161816819
10269002
1036948422
5336266412
10212989847
402894039
10615883886
The accompanying notes form are attached as an integral part of these financial statements.Legal representative: Principal in charge of accounting: Head of accounting department:
CSG HOLDING CO. LTD.
COMPANY'S STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
Attributable to shareholders of parent company
Item Share capital Capital surplus
Less: Treasury
share
Surplus
reserve
Undistributed
profits
Total
shareholders'
equity
Balance at 1 January 2019 2863277201 1240166735 (277180983) 938850735 440114948 5205228636
Movements for the year ended 31 December
2019
Total comprehensive income
Net profit - - - - 219459106 219459106
Total comprehensive income - - - - 219459106 219459106
Capital increase or decrease from
shareholder
(38925482) (129556777) 159114586 - - (9367673)
Share-based payments (38925482) (129556777) 159114586 - - (9367673)
Profit distribution - - - 21945911 (163094700) (141148789)
Appropriation to surplus reserve - - - 21945911 (21945911) -
Distribution to the shareholders - - - - (141148789) (141148789)
Capital reserve to share capital 282563286 (282563286) - - - -
Balance at 31 December 2019 3106915005 828046672 (118066397) 960796646 496479354 5274171280
Balance at 1 January 2020 3106915005 828046672 (118066397) 960796646 496479354 5274171280
Movements for the year ended 31 December
2020
Total comprehensive income
Net profit - - - - 906971361 906971361
Total comprehensive income - - - - 906971361 906971361
Capital increase or decrease from
shareholder
(36222898) (86222273) 118066397 - - (4378774)
Share-based payments (36222898) (86222273) 118066397 - - (4378774)
Profit distribution - - - 90697136 (302660021) (211962885)
Appropriation to surplus reserve - - - 90697136 (90697136) -
Distribution to the shareholders - - - - (211962885) (211962885)
Capital reserve to share capital
Balance at 31 December 2020 3070692107 741824399 -
1051493782
1100790694
5964800982
The accompanying notes form are attached as an integral part of these financial statements.Legal representative: Principal in charge of accounting: Head of accounting department:
CSG HOLDING CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
1 General information
CSG Holding Co.LTD (the “Company”) was incorporated in September 1984 known as China South
Glass Company as a joint venture enterprise by Hong Kong China Merchants Shipping Co.LTD (香港
招商局轮船股份有限公司) Shenzhen Building Materials Industry Corporation (深圳建筑材料工业集团
公司) China North Industries Corporation (中国北方工业深圳公司) and Guangdong International Trust
and Investment Corporation (广东国际信托投资公司). The Company was registered in Shenzhen
Guangdong Province of the People's Republic of China and its headquarters is located in Shenzhen
Guangdong Province of the People's Republic of China. The Company issued RMB-denominated
ordinary shares (“A-share”) and foreign shares (“B-share”) publicly in October 1991 and January 1992
respectively and was listed on Shenzhen Stock Exchange on February 1992. As at 31 December
2020 the registered capital was RMB3070692107 with nominal value of RMB1 per share.
The Company and its subsidiaries (collectively referred to as the “Group”) are mainly engaged in the
manufacture and sales of flat glass specialised glass engineering glass energy saving glass silicon
related materials polycrystalline silicon and solar components and electronic-grade display device
glass and the construction and operation of photovoltaic plant etc.
Details on the majors subsidiaries included in the consolidated scope in current year were stated in
Note .The financial statements were authorised for issue by the Board of Directors on 13 April 2021.
2 Summary of significant accounting policies and accounting estimates
The Group determines its specific accounting policies and accounting estimates to manufacturing and
operation feature. It mainly reflected in expected credit impairment losses of receivables was
measured inventory costing method Depreciation of fixed assets and amortization of intangible
assets criteria for determining capitalised development expenditure and timing for revenue
recognition .Please see the key judgements adopted by the Group in applying important accounting policies.
(1) Basis of preparation
The financial statements are prepared in accordance with the Accounting Standards for Business
Enterprises - Basic Standard and the specific accounting standards and other relevant regulations
issued by the Ministry of Finance on 15 February 2006 and in subsequent periods (hereafter
collectively referred to as “the Accounting Standard for Business Enterprises” or “CAS”) and
Information Disclosure Rule No. 15 for Companies with Public Traded Securities - Financial Reporting
General Provision issued by China Security Regulatory Commission.The financial statements have been prepared on a going concern basis.
CSG HOLDING CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(1) Basis of preparation (Cont’d)
Accordingly the directors of the Company had adopted the going concern basis in the preparation of
the financial statements of the Company and the Group.
(2) Statement of compliance with the Accounting Standards for Business Enterprises
The financial statements of the Company for the year ended 31 December 2020 are in compliance
with the Accounting Standards for Business Enterprises and truly and completely present the financial
position of the consolidated and the Company as at 31 December 2020 and their financial
performance cash flows for the year then ended.
(3) Accounting year
The Company’s accounting year starts on 1 January and ends on 31 December.
(4) Recording currency
The recording currency is Renminbi (RMB).
(5) Business combinations
(a) Business combinations involving enterprises under common control
The consideration paid and net assets obtained by the absorbing party in a business combination are
measured at book value.If the merged party was acquired by the ultimate controlling party from a third
party in the previous year the assets and liabilities of the merged party (including the goodwill formed
by the ultimate controlling party’s acquisition of the merged party). The difference between book
value of the net assets obtained from the combination and book value of the consideration paid for the
combination is treated as an adjustment to capital surplus (share premium). If the capital surplus
(share premium) is not sufficient to absorb the difference the remaining balance is adjusted against
retained earnings. Costs directly attributable to the combination are included in profit or loss in the
period in which they are incurred. Transaction costs associated with the issue of equity or debt
securities for the business combination are included in the initially recognised amounts of the equity or
debt securities.(b) Business combinations involving enterprises not under common control
The cost of combination and identifiable net assets obtained by the acquirer in a business combination
are measured at fair value at the acquisition date. Where the cost of the combination exceeds the
acquirer’s interest in the fair value of the acquiree’s identifiable net assets the difference is recognised
as goodwill; where the cost of combination is lower than the acquirer’s interest in the fair value of the
acquiree’s identifiable net assets the difference is recognised in profit or loss for the current period.
Costs directly attributable to the combination are included in profit or loss in the period in which they
are incurred. Transaction costs associated with the issue of equity or debt securities for the business
combination are included in the initially recognised amounts of the equity or debt securities.
(6) Preparation method of consolidated financial statements
The consolidated financial statements comprise the financial statements of the Company and all of its
subsidiaries.Subsidiaries are consolidated from the date on which the Group obtains control and are de-
consolidated from the date that such control ceases. For a subsidiary that is acquired in a business
combination involving enterprises under common control it is included in the consolidated financial
statements from the date when it together with the Company comes under common control of the
CSG HOLDING CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(6) Preparation of consolidated financial statements (Cont’d)
ultimate controlling party. The portion of the net profits realised before the combination date is
presented separately in the consolidated income statement.In preparing the consolidated financial statements where the accounting policies and the accounting
periods of the Company and subsidiaries are inconsistent the financial statements of the subsidiaries
are adjusted in accordance with the accounting policies and the accounting period of the Company.
For subsidiaries acquired from business combinations involving enterprises not under common control
the individual financial statements of the subsidiaries are adjusted based on the fair value of the
identifiable net assets at the acquisition date.
All significant intra-group balances transactions and unrealised profits are eliminated in the
consolidated financial statements. The portion of subsidiaries’ equity and the portion of a subsidiaries’
net profits and losses and comprehensive incomes for the period not attributable to Company are
recognised as minority interests and presented separately in the consolidated financial statements
under equity net profits and total comprehensive income respectively. Unrealised profits and losses
resulting from the sales of assets by the Company to its subsidiaries are fully eliminated against net
profit attributable to shareholders of the parent company. Unrealised profits and losses resulting from
the sales of assets by a subsidiary to the Company are eliminated and allocated between net profit
attributable to shareholders of the parent company and non-controlling interests in accordance with
the allocation proportion of the parent company in the subsidiary. Unrealised profits and losses
resulting from the sales of assets by one subsidiary to another are eliminated and allocated between
net profit attributable to shareholders of the parent company and non-controlling interests in
accordance with the allocation proportion of the parent in the subsidiary.
After the control over the subsidiary has been gained whole or partial minority equities of the
subsidiary owned by minority shareholders are acquired from the subsidiary’s minority shareholders.In the consolidated financial statements the subsidiary's assets and liabilities are reflected with
amount based on continuous calculation starting from the acquisition date or consolidation date.
Capital surplus is adjusted according to the difference between newly increased long-term equity
investment arising from acquisition of minority equity and the share of net assets calculated based on
current shareholding ratio that the parent company is entitled to. The share is subject to continuous
calculation starting from the acquisition date or consolidation date. If the capital surplus (capital
premium or share capital premium) is not sufficient to absorb the difference the remaining balance is
adjusted against retained earnings.If the accounting treatment of a transaction which considers the Group as an accounting entity is
different from that considers the Company or its subsidiaries as an accounting entity it is adjusted
from the perspective of the Group.
(7) Cash and cash equivalents
Cash and cash equivalents refer to cash in hand deposits that can be used for payment at any time
and investments with short holding periods strong liquidity easy conversion into known amounts of
cash and low risk of value changes.
(8) Foreign currency conversion
(a) Foreign currency transaction
Foreign currency transactions are translated into RMB using the exchange rates prevailing at the
dates of the transactions.
CSG HOLDING CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(8) Foreign currency conversion (Cont’d)
At the balance sheet date monetary items denominated in foreign currencies are translated into RMB
using the spot exchange rates on the balance sheet date. Exchange differences arising from these
translations are recognised in profit or loss for the current period except for those attributable to
foreign currency borrowings that have been taken out specifically for the acquisition or construction of
qualifying assets which are capitalised as part of the cost of those assets. Non-monetary items
denominated in foreign currencies that are measured at historical costs are translated at the balance
sheet date using the spot exchange rates at the date of the transactions. The effect of exchange rate
changes on cash is presented separately in the cash flow statement.(b) Translation of foreign currency financial statements
The asset and liability items in the balance sheets for overseas operations are translated at the spot
exchange rates on the balance sheet date. Among the shareholders’ equity items the items other than
“undistributed profits” are translated at the spot exchange rates of the transaction dates. The income
and expense items in the income statements of overseas operations are translated at the spot
exchange rates of the transaction dates. The differences arising from the above translation are
presented separately in the shareholders’ equity. The cash flows of overseas operations are translated
at the spot exchange rates on the dates of the cash flows. The effect of exchange rate changes on
cash is presented separately in the cash flow statement.
(9) Financial instrument
A financial instrument is any contract that gives rise to a financial asset of one entity and a
financial liability or equity instrument of another entity. A financial asset or a financial liability
is recognised when the Group becomes a party to the contractual provisions of the instrument.(a) Financial assets
(i) Classification and measurement
Based on the business model for managing the financial assets and the contractual cash flow
characteristics of the financial assets financial assets are classified as: (1) financial assets at
amortised cost; (2) financial assets at fair value through other comprehensive income; (3) financial
assets at fair value through profit or loss.The financial assets are measured at fair value at initial recognition. Related transaction costs
that are attributable to the acquisition of the financial assets are included in the initially recognised
amounts except for the financial assets at fair value through profit or loss the related transaction
costs of which are recognised directly in profit or loss for the current period. Accounts
receivable or notes receivable arising from sales of products or rendering of services
(excluding or without regard to significant financing components) are initially recognised at the
consideration that is entitled to be charged by the Group as expected.
Debt instruments
The debt instruments held by the Group refer to the instruments that meet the definition of financial
liabilities from the perspective of the issuer and are measured in the following ways.Measured at amortised cost
The objective of the Group's business model is to hold the financial assets to collect the
contractual cash flows and the contractual cash flow characteristics are consistent with a
CSG HOLDING CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(9) Financial instrument(Cont’d)
basic lending arrangement which gives rise on specified dates to the contractual cash flows that are
solely payments of principal and interest on the principal amount outstanding. The interest income of
such financial assets is recognised using the effective interest method.Such financial assets mainly
comprise cash at bank and on hand placements with and loans to banks and other financial
institutions measured at amortised costaccounts receivable factoring receivables loans and
advancesother receivables and long-term receivables. Long-term receivables that are due within one
year (inclusive) as from the balance sheet date are included in the current portion of non-current
assets.
Financial assets at fair value through other comprehensive income:
The objective of the Group's business model is to hold the financial assets to collect the contractual
cash flows and selling as target and the contractual cash flow characteristics are consistent with
a basic lending arrangement.Such financial assets are measured at fair value and their changes are
included in other comprehensive income but impairment losses or gains exchange gains and losses
and interest income calculated by the effective interest rate method are all included in the current profit
and loss.Such financial assets mainly comprise receivable financing and other financial debt
investment.Other financial debt investment that are due within one year (inclusive) as from the balance
sheet date are included in the current portion as other current assets.Measured at fair value through profit or loss:
Debt instruments held by the Group that are not divided into those at amortised cost or those
measured at fair value through other comprehensive income are measured at fair value through
profit or loss and included in financial assets held for trading. At initial recognition the Group
designates a portion of financial assets as at fair value through profit or loss to eliminate or
significantly reduce an accounting mismatch. Financial assets that are due within one year
(inclusive) as from the balance sheet date and are expected to be held over one year are included in
other non-current financial assets.
Equity instruments
Investments in equity instruments over which the Group has no control joint control or significant
influence are measured at fair value through profit or loss under financial assets held for
trading; investments in equity instruments expected to be held over one year as from the balance
sheet date are included in other non-current financial assets.In addition a portion of certain investments in equity instruments not held for trading are designated as
financial assets at fair value through other comprehensive income under other investments in
equity instruments. The relevant dividend income of such financial assets is recognised in profit
or loss for the current period.(ii) Impairment
The Group confirms the loss provision based on expected credit losses for financial assets measured
at amortised cost.Giving consideration to reasonable and supportable information on past events current
conditions and forecasts of future economic conditions as well as the default risk weight the
expected credit loss was confirmed .
CSG HOLDING CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(9) Financial instrument(Cont’d)
As at each balance sheet date the expected credit losses of financial instruments at different
stages are measured respectively. 12-month ECL provision is recognised for financial
instruments in Stage 1 that have not had a significant increase in credit risk since initial
recognition; lifetime ECL provision is recognised for financial instruments in Stage 2 that have
had a significant increase in credit risk yet without credit impairment since initial recognition; and
lifetime ECL provision is recognised for financial instruments in Stage 3 that have had credit
impairment since initial recognition.
For the financial instruments with lower credit risk on the balance sheet date the Group
assumes there is no significant increase in credit risk since initial recognition and recognises
the 12-month ECL provision.
For the financial instruments in Stage 1 Stage 2 and with lower credit risk the Group calculates the
interest income by applying the effective interest rate to the gross carrying amount (before
deduction of the impairment provision). For the financial instrument in Stage 3 the interest
income is calculated by applying the effective interest rate to the amortised cost (after deduction of the
impairment provision from the gross carrying amount).
For notes and accounts receivables and factoring receivables arising from daily business activities
such as selling commodities and providing labor services the Group recognises the lifetime expected
credit loss provision regardless of whether there exists a significant financing component
In case the expected credit losses of an individually assessed financial asset cannot be evaluated with
reasonable cost the Group divides the receivables into certain groupings based on credit risk
characteristics and calculates the expected credit losses for the groupings. Basis for
determined groupings and method for provision are as follows:
Notes receivables Portfolio 1 Bank acceptance Notes Expected credit loss method
Notes receivables Portfolio 2 Trade acceptance Notes Expected credit loss method
Accounts receivables Portfolio 1 Receivables non-related third party Expected credit loss method
Accounts receivables Portfolio 2 Receivables related party Expected credit loss method
Other receivables Portfolio 1 Receivables non-related third party Expected credit loss method
Other receivables Portfolio 2 Receivables related party Expected credit loss method
For notes and accounts receivables and receivable financing arising from daily business activities
such as selling commodities and providing labor services the Group refers to historical credit loss
experience combined with current conditions and predictions of future economic conditions . In
addition to notes receivable factoring receivables and other receivables classified as a combination
the Group refers to historical credit loss experience combines current conditions and predictions of
future economic conditions and passes default risk exposure and future 12 The expected credit loss
rate within a month or the entire duration is calculated as the expected credit loss.The Group recognises the loss provision made or reversed into profit or loss for the current
period. For debt instruments that are held at fair value and whose changes are included in other
comprehensive income the Group adjusts other comprehensive income while accounting for
impairment losses or gains in the current profit or loss.(iii) Derecognition
A financial asset is derecognised when any of the below criteria is met: (1) the contractual rights to
receive the cash flows from the financial asset expire; (2) the financial asset has been transferred
CSG HOLDING CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(9) Financial instrument(Cont’d)
and the Group transfers substantially all the risks and rewards of ownership of the financial
asset to the transferee; or (3) the financial asset has been transferred and the Group has not
retained control of the financial asset although the Group neither transfers nor retains substantially
all the risks and rewards of ownership of the financial asset.(b) Financial liabilities
Financial liabilities are classified as financial liabilities at amortised cost and financial liabilities at
fair value through profit or loss at initial recognition.The Group's financial liabilities are mainly comprise financial liabilities at amortised cost including bills
payable accounts payable and other payables. This type of financial liability is initially measured at its
fair value after deducting transaction costs and is subsequently measured using the actual interest
rate method. If the maturity is less than one year (including one year) it is listed as current liabilities;
Those with a maturity of less than one year (including one year) are listed as current liabilities; those
with a maturity of more than one year but due within one year (including one year) from the balance
sheet date are listed as non-current liabilities due within one year. The rest are listed as non-current
liabilities.
A financial liability is derecognised or partly derecognised when the underlying present
obligation is discharged or partly discharged. The difference between the carrying amount of
the derecognised part of the financial liability and the consideration paid is recognised in profit or
loss for the current period.(c) Determination of fair value of financial instruments
The fair value of a financial instrument that is traded in an active market is determined at the
quoted price in the active market. The fair value of a financial instrument that is not traded in an
active market is determined by using a valuation technique. In valuation the Group adopts valuation
techniques applicable in the current situation and supported by adequate available data and
other information selects inputs with the same characteristics as those of assets or liabilities
considered in relevant transactions of assets or liabilities by market participants and gives
priority to the use of relevant observable inputs. When relevant observable inputs are not
available or feasible unobservable inputs are adopted.
(10) Inventories
(a) Classification
Inventories refer to manufacturing sector including raw materials work in progress finished goods
and turnover materials and are measured at the lower of cost and net realisable value.(b) Issued Inventory costing method
Cost is determined using the weighted average method. The cost of finished goods and work in
progress comprise raw materials direct labour and systematically allocated production overhead
based on the normal production capacity.
CSG HOLDING CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(10) Inventories (Cont’d)
(c) Amortisation methods of low value consumables and packaging materials
Turnover materials include low value consumables and packaging materials which are expensed
when issued.(d) The determination of net realisable value and the method of provision for decline in the value of
inventories
Provision for decline in the value of inventories is determined at the excess amount of book values of
the inventories over their net realisable value. Net realisable value is determined based on the
estimated selling price in the ordinary course of business less the estimated costs to completion and
estimated costs necessary to make the sale and related taxes.(e) The Group adopts the perpetual inventory system.
(11) Long-term equity investments
Long-term equity investments comprise the Company’s long-term equity investments in its subsidiaries
and the Group’s long-term equity investments in its associates.Subsidiaries are the investees over which the Company is able to exercise control. Associates are the
investees that the Group has significant influence on their financial and operating policies.Investments in subsidiaries are measured using the cost method in the Company’s financial
statements and adjusted by using the equity method when preparing the consolidated financial
statements. Investments in associates are accounted for using the equity method.(a) Initial recognition of investment cost
For long-term equity investments formed in business combination: when obtained from business
combinations involving entities under common control the long-term equity investment is stated at
carrying amount of equity for the combined parties at the time of merger; when the long-term equity
investment obtained from business combinations involving entities not under common control the
investment is measured at combination cost.
For long-term equity investments not formed in business combination: the one paid by cash is initially
measured at actual purchase price; the long-term investment obtained by issuing equity securities is
stated at fair value of equity securities as initial investment cost..(b) Subsequent measurement and recognition of related profit or loss
For long-term equity investments accounted for using the cost method they are measured at the initial
investment costs and cash dividends or profit distribution declared by the investees are recognised as
investment income in profit or loss.
For long-term equity investments accounted for using the equity method where the initial investment
cost of a long-term equity investment exceeds the Group’s share of the fair value of the investee’s
identifiable net assets at the acquisition date the long-term equity investment is measured at the initial
investment cost; where the initial investment cost is less than the Group’s share of the fair value of the
investee’s identifiable net assets at the acquisition date the difference is included in profit or loss and
the cost of the long-term equity investment is adjusted upwards accordingly.
CSG HOLDING CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(11) Long-term equity investments (Cont’d)
Under the equity method the Group recognises the investment income according to its share of net
profit or loss of the investee. The Group discontinues recognising its share of the net losses of an
investee after book values of the long-term equity investment together with any long-term interests that
in substance form part of the investor’s net investment in the investee are reduced to zero. However if
the Group has obligations for additional losses and the criteria with respect to recognition of provisions
under the accounting standards on contingencies are satisfied the Group continues recognising the
investment losses and the provisions. For changes in owners’ equity of the investee other than those
arising from its net profit or loss its proportionate share is directly recorded into capital surplus
provided that the proportion of the shareholding of the Group in the investee remains unchanged.
Book value of the investment is reduced by the Group’s share of the profit distribution or cash
dividends declared by an investee. The unrealised profits or losses arising from the intra-group
transactions amongst the Group and its investees are eliminated in proportion to the Group’s equity
interest in the investees and then based on which the investment gains or losses are recognised. Any
losses resulting from transactions between the Group and its investees attributable to asset
impairment losses are not eliminated.(c) Basis for determining existence of control jointly control or significant influence over investees
The term "control" refers to the power in the investees to obtain variable returns by participating in the
related business activities of the investees and the ability to affect the returns by exercising its power
over the investees.The term "significant influence" refers to the power to participate in the formulation of financial and
operating policies of an enterprise but not the power to control or jointly control the formulation of
such policies with other parties.(d) Impairment of long-term equity investments
Book value of long-term equity investments in subsidiaries and associates is reduced to the
recoverable amount when the recoverable amount is less than book value.
(12) Investment property
Investment property includes leased land use rights land use rights held and provided for to transfer
after appreciation and leased building and construction.Investment properties are initially measured at acquisition cost. The cost of outsourcing Investment
property includes the purchase price relevant taxes and other expenditures that can be directly
attributable to the asset; the cost of self-built Investment property is determined by the construction of
the asset. The composition of the necessary expenditures incurred before the usable state.Investment property adopts the fair value model for subsequent measurement without depreciation or
amortization. On the balance sheet date the book value of the investment properties are initially
measured at acquisition cost is adjusted based on the fair value of the investment properties are
initially measured at acquisition cost. The difference between the fair value and the original book value
will be calculated into the current profit and loss.When the use of an Investment property is changed to self-use the investment property is converted
into fixed assets or intangible assets from the date of change and the book value and fair value of the
fixed assets and intangible assets are determined based on the fair value of the investment property
on the conversion date. The difference with the original book value of the investment property is
included in the current profit and loss. When the purpose of self-use real estate is changed to earning
rent or capital appreciation from the date of change the fixed assets or intangible assets are
converted into investment properties are initially measured at acquisition cost and the fair value on the
CSG HOLDING CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(12) Investment property (Cont’d)
day of conversion is used as the book value of the investment properties are initially measured at
acquisition cost and the fair value on the day of conversion If the value is less than the original book
value of fixed assets and intangible assets the difference is included in the current profit and loss. If
the fair value on the day of conversion is greater than the original book value of fixed assets and
intangible assets the difference is included in other comprehensive income.When an investment property is disposed of or permanently withdrawn from use and it is expected that
no economic benefits can be obtained from its disposal the confirmation of the investment real estate
shall be terminated. The disposal income from the sale transfer scrapping or destruction of
investment real estate shall deduct its book value and relevant taxes and shall be included in the
current profits and losses. If there is an amount included in other comprehensive income on the
original conversion date it will also be carried forward and included in the current profit and loss.
(13) Fixed assets
(a) Recognition and initial measurement
Fixed assets comprise buildings machinery and equipment motor vehicles and others.
Fixed assets are recognised when it is probable that the related economic benefits will probably flow to
the Group and the costs can be reliably measured. Fixed assets purchased or constructed by the
Group are initially measured at cost at the acquisition date.Subsequent expenditures incurred for a fixed asset are included in the cost of the fixed asset when it
is probable that the associated economic benefits will flow to the Group and the related cost can be
reliably measured. Book value of the replaced part is derecognised. All the other subsequent
expenditures are recognised in profit or loss in the period in which they are incurred.(b) Depreciation methods
Fixed assets are depreciated using the life average method to allocate the cost of the assets to their
estimated residual values over their estimated useful lives. For the fixed assets that have been
provided for impairment loss the related depreciation charge is prospectively determined based upon
the adjusted carrying amounts over their remaining useful lives.The estimated useful lives the estimated net residual values expressed as a percentage of cost and
the annual depreciation rates of fixed assets are as follows:
Estimated useful lives Estimated net residual value Annual depreciation rate
Buildings 20 to 35 years 5% 2.71% to 4.75%
Machinery and equipment 8 to 20 years 5% 4.75% to 11.88%
Transportation and others 5 to 8 years 0% 12.50% to 20.00%
The estimated useful life the estimated net residual value of a fixed asset and the depreciation
method applied to the asset are reviewed and adjusted as appropriate at each year-end.
CSG HOLDING CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(13) Fixed assets (Cont’d)
(c) Book value of a fixed asset is reduced to the recoverable amount when the recoverable amount is
below book value.(d) Disposal
A fixed asset is derecognised on disposal or when no future economic benefits are expected from its
use or disposal. The amount of proceeds from disposals on sale transfer retirement or damage of a
fixed asset net of its carrying amount and related taxes and expenses is recognised in profit or loss for
the current period.
(14) Construction in progress
Construction in progress is recorded at actual cost. Actual cost comprises construction cost
installation cost borrowing costs eligible for capitalised condition and necessary expenditures incurred
for its intended use. Actual cost also includes net of trial production cost and trial production income
before construction in progress is put into production.
Construction in progress is transferred to fixed assets when the assets are ready for their intended use
and depreciation begins from the following month.
Book value of construction in progress is reduced to the recoverable amount when the recoverable
amount is below book value.
CSG HOLDING CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(15) Borrowing costs
The borrowing costs that are directly attributable to the acquisition and construction of an asset that
needs a substantially long period of time for its intended use commence to be capitalised and
recorded as part of the cost of the asset when expenditures for the asset and borrowing costs have
been incurred and the activities relating to the acquisition and construction that are necessary to
prepare the asset for its intended use have commenced. The capitalisation of borrowing costs ceases
when the asset under acquisition or construction becomes ready for its intended use and the
borrowing costs incurred thereafter are recognised in profit or loss for the current period. Capitalisation
of borrowing costs is suspended during periods in which the acquisition or construction of a fixed asset
is interrupted abnormally and the interruption lasts for more than 3 months until the acquisition or
construction is resumed.
For the specific borrowings obtained for the acquisition or construction of an asset qualifying for
capitalisation the amount of borrowing costs eligible for capitalisation is determined by deducting any
interest income earned from depositing the unused specific borrowings in the banks or any investment
income arising on the temporary investment of those borrowings during the capitalisation period.
For the general borrowings obtained for the acquisition or construction of an asset qualifying for
capitalisation the amount of borrowing costs eligible for capitalisation is determined by applying the
weighted average effective interest rate of general borrowings to the weighted average of the excess
amount of cumulative expenditures on the asset over the amount of specific borrowings. The effective
interest rate is the rate at which the estimated future cash flows during the period of expected duration
of the borrowings or applicable shorter period are discounted to the initial amount of the borrowings.
(16) Intangible assets
Intangible assets mainly including land use rights patents and proprietary technologies exploitation
rights and others are measured at cost.(a) Land use rights
Land use rights are amortised on the straight-line basis over their approved use period of 30 to 70
years. If the acquisition costs of the land use rights and the buildings located thereon cannot be
reasonably allocated between the land use rights and the buildings all of the acquisition costs are
recognised as fixed assets.(b) Patents and proprietary technologies
Patents are amortised on a straight-line basis over the estimated use life.(c) Exploitation rights
Exploitation rights are amortised on a straight-line basis over permitted exploitation periods on the
exploitation certificate.(d) Periodical review of useful life and amortisation method
For an intangible asset with a finite useful life review of its useful life and amortisation method is
performed at each year-end with adjustment made as appropriate.
CSG HOLDING CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(16) Intangible assets (Cont’d)
(e) Research and development
The expenditure on an internal research and development project is classified into expenditure on the
research phase and expenditure on the development phase based on its nature and whether there is
material uncertainty that the research and development activities can form an intangible asset at end
of the project.
Expenditure on the research phase related to planned survey evaluation and selection for research on
manufacturing technique is recognised in profit or loss in the period in which it is incurred. Prior to
mass production expenditure on the development phase related to the design and testing phase in
regards to the final application of manufacturing technique is capitalised only if all of the following
conditions are satisfied:
? the development of manufacturing technique has been fully demonstrated by technical team;
? management has approved the budget for the development of manufacturing technique;
? there are research and analysis of pre-market research explaining that products manufactured
with such technique are capable of marketing;
? There is sufficient technical and capital to support the development of manufacturing
technique and subsequent mass production; and the expenditure on manufacturing technique
development can be reliably gathered.Other development expenditures that do not meet the conditions above are recognised in profit or loss
in the period in which they are incurred. Development costs previously recognised as expenses are
not recognised as an asset in a subsequent period. Capitalised expenditure on the development
phase is presented as development costs in the balance sheet and transferred to intangible assets at
the date that the asset is ready for its intended use.(f) Impairment of intangible assets
Book value of intangible assets is reduced to the recoverable amount when the recoverable amount is
below book value.
(17) Long-term prepaid expenses
Long-term prepaid expenses include the expenditures that have been incurred but should be
recognised as expenses over more than one year in the current and subsequent periods. Long-term
prepaid expenses are amortised on the straight-line basis over the expected beneficial period and are
presented at actual expenditure net of accumulated amortisation.
(18) Impairment of long-term assets
Fixed assets construction in progress intangible assets with finite useful lives and long-term equity
investments in joint ventures and associates are tested for impairment if there is any indication that the
assets may be impaired at the balance sheet date; intangible assets not ready for their intended use
are tested at least annually for impairment irrespective of whether there is any indication that they
may be impaired. If the result of the impairment test indicates that the recoverable amount of an asset
is less than its carrying amount a provision for impairment and an impairment loss are recognised for
the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable
amount is the higher of an asset’s fair value less costs to sell and the present value of the future cash
flows expected to be derived from the asset. Provision for asset impairment is determined and
recognised on the individual asset basis. If it is not possible to estimate the recoverable amount of an
individual asset the recoverable amount of a group of assets to which the asset belongs is determined.
A group of assets is the smallest group of assets that is able to generate independent cash inflows.
CSG HOLDING CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(18) Impairment of long-term assets (Cont’d)
Goodwill that is separately presented in the financial statements is tested at least annually for
impairment irrespective of whether there is any indication that it may be impaired. In conducting the
test book value of goodwill is allocated to the related asset groups or groups of asset groups which
are expected to benefit from the synergies of the business combination. If the result of the test
indicates that the recoverable amount of an asset group or group of asset groups including the
allocated goodwill is lower than its book value the corresponding impairment loss is recognised. The
impairment loss is first deducted from book value of goodwill that is allocated to the asset group or
group of asset groups and then deducted from book values of other assets within the asset groups or
groups of asset groups in proportion to book values of assets other than goodwill.Once the above asset impairment loss is recognised it will not be reversed for the value recovered in
the subsequent periods.
(19) Employee benefits
Employee benefits include short-term employee benefits post-employment benefits termination
benefits and other long-term employee benefits provided in various forms of consideration in exchange
for service rendered by employees or compensations for the termination of employment relationship.(a) Short-term employee benefits
Short-term employee benefits include wages or salaries bonuses allowances and subsidies staff
welfare medical care work injury insurance maternity insurance housing funds labour union funds
employee education funds and paid short-term leave etc. The employee benefit liabilities are
recognised in the accounting period in which the service is rendered by the employees with a
corresponding charge to the profit or loss for the current period or the cost of relevant assets.
Employee benefits which are non-monetary benefits shall be measured at fair value.
(b) Post-employment benefits
The Group classifies post-employment benefit plans as either defined contribution plans or defined
benefit plans. Defined contribution plans are post-employment benefit plans under which the Group
pays fixed contributions into a separate fund and will have no obligation to pay further contributions;
and defined benefit plans are post-employment benefit plans other than defined contribution plans.
During the reporting period the Group's post-employment benefits mainly include basic pensions and
unemployment insurance both of which belong to the defined contribution plans.(c) Basic pensions
The Group’s employees participate in the basic pension plan set up and administered by local
authorities of Ministry of Human Resource and Social Security. Monthly payments of premiums on the
basic pensions are calculated according to prescribed bases and percentage by the relevant local
authorities. When employees retire local labour and social security institutions have a duty to pay the
basic pension insurance to them. The amounts based on the above calculations are recognised as
liabilities in the accounting period in which the service has been rendered by the employees with a
corresponding charge to the profit or loss for the current period or the cost of relevant assets..
CSG HOLDING CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(19) Employee benefits (Cont’d)
(d) Termination benefits
The Group provides compensation for terminating the employment relationship with employees before
the end of the employment contracts or as an offer to encourage employees to accept voluntary
redundancy before the end of the employment contracts. The Group recognises a liability arising from
compensation for termination of the employment relationship with employees with a corresponding
charge to profit or loss at the earlier of the following dates: 1) when the Group cannot unilaterally
withdraw the offer of termination benefits because of an employment termination plan or a curtailment
proposal; 2) when the Group recognises costs or expenses related to the restructuring that involves
the payment of termination benefits.The termination benefits expected to be paid within one year since the balance sheet date are
classified as current liabilities.
(20) Dividend distribution
Cash dividend is recognised as a liability for the period in which the dividend is approved by the
shareholders’ meeting.
(21) Deferred tax assets and deferred tax liabilities
Deferred tax assets and deferred tax liabilities are calculated and recognised based on the differences
arising between the tax bases of assets and liabilities and their carrying amounts (temporary
differences). Deferred tax asset is recognised for the deductible losses that can be carried forward to
subsequent years for deduction of the taxable profit in accordance with the tax laws. No deferred tax
liability is recognised for a temporary difference arising from the initial recognition of goodwill. No
deferred tax asset or deferred tax liability is recognised for the temporary differences resulting from the
initial recognition of assets or liabilities due to a transaction other than a business combination which
affects neither accounting profit nor taxable profit (or deductible loss). At the balance sheet date
deferred tax assets and deferred tax liabilities are measured at the tax rates that are expected to apply
to the period when the asset is realised or the liability is settled.
Deferred tax assets are only recognised for deductible temporary differences deductible losses and
tax credits to the extent that it is probable that taxable profit will be available in the future against which
the deductible temporary differences deductible losses and tax credits can be utilised.
Deferred tax liabilities are recognised for temporary differences arising from investments in
subsidiaries and associates except where the Group is able to control the timing of reversal of the
temporary difference and it is probable that the temporary difference will not reverse in the
foreseeable future. When it is probable that the temporary differences arising from investments in
subsidiaries and associates will be reversed in the foreseeable future and that the taxable profit will be
available in the future against which the temporary differences can be utilised the corresponding
deferred tax assets are recognised.
Deferred tax assets and liabilities that meet the following conditions at the same time are listed as the
net amount after offset:
? Deferred income tax assets and deferred income tax liabilities are related to the same tax payer
within the Group and the same taxation authority; and
? That tax entity within the Group has a legally enforceable right to offset current tax assets
against current tax liabilities.
CSG HOLDING CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(22) Share-based payments
Share-based payments are divided into equity-settled and cash-settled payments. The term "equity-
settled share-based payment" refers to a transaction in which an enterprise grants shares or other
equity instruments as a consideration in return for services.
Equity-settled share-based payment The Group‘s stock optionstock option plan is the equity-settled
share-based payment in exchange of employees' services and is measured at the fair value of the
equity instruments at grant date. The equity instruments are exercisable after services in vesting
period are completed or specified performance conditions are met. In the vesting period the services
obtained in current period are included in relevant cost and expenses at the fair value of the equity
instruments at grant date based on the best estimate of the number of exercisable equity instruments
and capital surplus is increased accordingly. The Group makes the best estimate of the number of
vesting equity instruments based on the latest obtained changes in the number of vested employees
whether the required performance conditions are met and other follow-up information.If the
subsequent information indicates the number of exercisable equity instruments differs from the
previous estimate an adjustment is made and on the exercise date the estimate is revised to equal
the number of actual vested equity instruments.In the period at which performance conditions and term of service are met the relevant cost and
expenses of equity-settled payment should be recognized and capital surplus is increased accordingly.
Before the exercise date the accruing amounts of equity-settled payments on balance sheet date
reflect the part of expired waiting period and optimal estimation for the number of the Company final
vested equity instruments.If the non-market conditions and term of service are not met so that share-based payment fail to
exercise the costs and expenses on this portion should not be recognized. If the share-
based payment agreement sets out the market conditions and term of non-vesting as long as
performance conditions and term of service are met it is should be regard as exercisable right no
matter the market conditions and non-vesting conditions are meet or not.If the terms of equity-settled payment are modified at least the service is confirmed in accordance with
the unmodified terms. In addition the increase of the fair value of the authorized equity instruments or
the beneficial changes to the employees on the modification date the increase of service are
confirmed.If the equity-settled payment is cancelled the cancellation date shall be deemed as an expedited
exercise and the unconfirmed amount shall be confirmed immediately. If the employee or other party
is able to choose to meet the non-vesting conditions but not satisfied in the waiting period equity-
settled payment should be cancelled. But if a new equity instrument is granted and the new equity
instrument is confirm to replace the old equity instrument which is canceled in the authorization date of
the new equity instrument the new equity instrument should be disposed by using the same
conditions and terms of the old equity instrument for modifications.
(23) Revenue recognition
The Group recognises revenue at the consideration that the Group is entitled to charge as expected
when the Group has fulfilled the performance obligations in the contract that is the customer obtains
control over relevant goods or services.
CSG HOLDING CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(23) Revenue recognition (Cont’d)
(a) Sales of goods
The Group mainly sells flat and engineering glass products related to solar energy and electronic
glass and displays. For domestic sales the Group delivers the products to a certain place specified in
the contract. When the buyer takes over the goods the Group recognises revenue. For export sales
the Group recognises the revenue when it finished clearing goods for export and deliver the goods on
board the vessel or when the goods are delivered to a certain place specified in the contract. The
credit period granted by the Group to customers is determined based on the customer's credit risk
characteristics consistent with industry practices and there is no major financing component. The
Group’s obligation to transfer goods to customers for consideration received or receivable from
customers is listed as contract liabilities.Revenue is presented as the net amount after deducting sales discounts and sales returns.(b) Rendering of services
The Group provides external consulting loading unloading transportation and processing labor
services and recognizes revenue within a period of time based on the progress of the completed labor.The progress of the completed labor is determined according to the proportion of the cost incurred to
the estimated total cost. On the balance sheet date the Group re-estimates the progress of completed
labor services so that it can reflect changes in contract performance.When the Group recognizes revenue based on the performance progress of the completed labor
services the portion for which the Group has obtained the unconditional right to receive payments is
recognized as accounts receivable and the remaining portion is recognized as contract assets and
the Company measures the loss reserve of accounts receivable and contract assets. according to the
expected credit loss; If the contract price received or receivable by the Group exceeds the completed
progress the excess is recognized as contract liabilities. The Group presents the contract assets and
contract liabilities under the same contract as a net amount.
(24) Provisions
Business restructuring provisions for product warranties loss contracts etc. are recognised when the
Group has a present obligation it is probable that an outflow of economic benefits will be required to
settle the obligation and the amount of the obligation can be measured reliably.
A provision is initially measured at the best estimate of the expenditure required to settle the related
present obligation. Factors surrounding a contingency such as the risks uncertainties and the time
value of money are taken into account as a whole in reaching the best estimate of a provision. Where
the effect of the time value of money is material the best estimate is determined by discounting the
related future cash outflows. The increase in the discounted amount of the provision arising from
passage of time is recognised as interest expense.
Book value of provision is reviewed at each balance sheet date and adjusted to reflect the current best
estimate.The provisions expected to be paid within one year since the balance sheet date are classified as
current liabilities.
CSG HOLDING CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(25) Government grants
Government grants are transfers of monetary or non-monetary assets from the government to the
Group at nil consideration including tax refund and financial subsidies etc.
A government grant is recognised when there is a reasonable assurance that the grants will be
received and the Group will comply with all attached conditions. Monetary government grants are
measured at the amounts received or receivable. Non-monetary government grant are measured at
fair value if the fair value cannot be reliably obtained it is measured at nominal amount.The government grants related to assets refer to government grant obtained by enterprises and used
for purchase and construction of long-term assets or formation of long-term asset in other ways. The
government grants related to income refer to grants other than those related to assets.
For government grants related to income where the grant is a compensation for related expenses or
losses to be incurred by the Group in the subsequent periods the grant is recognised as deferred
income and included in profit or loss over the periods in which the related costs are recognised; where
the grant is a compensation for related expenses or losses already incurred by the Group the grant is
recognised immediately in profit or loss for the current period.The company use the same method of
presentation for similar government grants.The ordinary activitiy government grants should be counted into operating profits; the government
grants which not belong ordinary activities should be counted inton non-operationg income.
(26) Leases
A lease that transfers substantially all the risks and rewards incidental to ownership of an asset is a
finance lease. An operating lease is a lease other than a finance lease.Lease payments under an operating lease are recognised on a straight-line basis over the period of
the lease and are either capitalised as part of the cost of related assets or charged as an expense for
the current period.Lease income under an operating lease is recognised as revenue on a straight-line basis over the
period of the lease.
(27) Assets classified as held for sale
A non-current asset or a disposal group is classified as held for sale when all of the following
conditions are satisfied: (1) the non-current asset or the disposal group is available for immediate sale
in its present condition subject to terms that are traditionally and customary for sales; (2) the Group
has made a resolution and obtained appropriate approval for disposal of the non-current asset or the
disposal group and the transfer is to be completed within one year.Non-current assets (except for financial assets investment properties at fair value and deferred tax
assets) that meet the recognition criteria for held for sale are recognised at the amount equal to the
lower of the fair value less costs to sell and book value. The difference between fair value less costs to
sell and carrying amount should be presented as impairment loss.Such non-current assets and assets included in disposal groups as classified as held for sale are
accounted for as current assets; while liabilities included in disposal groups classified as held for sale
are accounted for as current liabilities and are presented separately in the balance sheet.
A discontinued operation is a component of the Group that either has been disposed of or is classified
as held for sale and is separately identifiable operationally and for financial reporting purposes and
satisfies one of the following conditions: (1) represents a separate major line of business or
CSG HOLDING CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(27) Assets classified as held for sale (Cont’d)
geographical area of operations; (2) is part of a single coordinated plan to dispose of a separate major
line of business or geographical area of operations; and (3) is a subsidiary acquired exclusively with a
view to resale.The discontinued operation profits on income statement presentation have included the profits and
loss of operation and disposal.
(28) Safety production costs
According to relevant regulations of the Ministry of Finance and National Administration of Work Safety
a subsidiary of the Group which is engaged in producing and selling polysilicon appropriates safety
production costs on following basis:
(a) 4% for revenue below RMB10 million (inclusive) of the year;
(b) 2% for the revenue between RMB10 million to RMB100 million (inclusive) of the year;
(c) 0.5% for the revenue between RMB100 million to RMB1 billion (inclusive) of the year;
(d) 0.2% for the revenue above RMB1 billion of the year.The safety production costs is mainly used for the overhaul renewal and maintenance of safety
facilities. The safety production costs are charged to costs of related products or profit or loss when
appropriated and safety production costs in equity account are credited correspondingly. When using
the special reserve if the expenditures are expenses in nature the expenses incurred are offset
against the special reserve directly when incurred. If the expenditures are capital expenditures when
projects are completed and transferred to fixed assets the special reserve should be offset against the
cost of fixed assets and a corresponding accumulated depreciation are recognised. The fixed assets
are no longer be depreciated in future.
(29) Segment information
The Group identifies operating segments based on the internal organisation structure management
requirements and internal reporting system and discloses segment information of reportable
segments which is determined on the basis of operating segments.
An operating segment is a component of the Group that satisfies all of the following conditions: (1) the
component is able to earn revenue and incur expenses from its ordinary activities; (2) whose operating
results are regularly reviewed by the Group’s management to make decisions about resources to be
allocated to the segment and to assess its performance and (3) for which the information on financial
position operating results and cash flows is available to the Group. If two or more operating segments
have similar economic characteristics and satisfy certain conditions they are aggregated into one
single operating segment.
(30) Critical accounting estimates and judgements
The Group continually Estimates the critical accounting estimates and key assumptions applied based
on historical experience and other factors including expectations of future events that are believed to
be reasonable.The critical accounting estimates and key assumptions that have a significant risk of possibly causing
a material adjustment to book values of assets and liabilities within the next accounting year are
outlined below:
CSG HOLDING CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(30) Critical accounting estimates and judgements(Cont’d)
(a) Income tax
The Group is subject to Income tax in numerous jurisdictions. There are some transactions and events
for which the ultimate tax determination is uncertain during the ordinary course of business. Significant
judgement is required from the Group in determining the provision for Income tax in each of these
jurisdictions. Where the final identified outcome of these tax matters is different from the initially-
recorded amount such difference will impact the income tax expenses and deferred income tax in the
period in which such determination is finally made.(b) Deferred income tax
Estimates on deferred tax assets are based on estimates on amount of taxable income and applicable
tax rate for every year. Realisation of deferred income tax are subject to sufficient taxable income that
are possible to be obtained by the Group in the future. Change of the future tax rate as well as the
reversed time of temporary difference might have effects on tax expense (income) and the balance of
deferred tax assets or liabilities. Those estimates may also cause significant adjustment on deferred
tax.(c) Impairment of long-term assets (excluding goodwill)
Long-term assets at the balance sheet date should be subject to impairment testing if there are any
indications of impairment. Management determines whether the long-term assets impaired or not by
evaluating and analysing following aspects: (1) whether the event affecting assets impairment occurs;
(2) whether the expected obtainable present value of future cash flows is lower than the asset’s
carrying amount by continually using the assets or disposal; and (3) whether the assumptions used in
expected obtainable present value of future cash flows are appropriate.Various assumptions including the discount rate and growth rate applied in the method of present
value of future cash flow are required in evaluating the recoverable amount of assets. If these
assumptions cannot be conformed the recoverable amount should be modified and the long-term
assets may be impaired accordingly.(d) The useful life of fixed assets
Management estimates the useful life of fixed assets based on historical experiences on using fixed
assets that have similar properties and functions. When there are differences between actually useful
life and previously estimation management will adjust estimation to useful life of fixed assets. The
fixed assets would be written off or written down when fixed assets been disposed or became
redundant. Thus the estimated result based on existing experience may be different from the actual
result of the next accounting period which may cause major adjustment to book value of fixed assets
on balance sheet.(e) Goodwill impairment
Goodwill impairment reviews are undertaken annually or more frequently if events or changes in
circumstances indicate a potential impairment. For the purpose of impairment testing goodwill
acquired in a business combination is allocated to each of the cash-generating units (“CGUs”) or
groups of CGUs and future cash flow from each CGU or CGUs is forcasted and discounted with
appropriate discount rate.
CSG HOLDING CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(31) Significant changes in accounting policies and accounting estimates
New income standards The Ministry of Finance promulgated the Accounting Standards for Business
Enterprises No.14-Income (Revised) in 2017 (hereinafter referred to as the "New Income Standards").
The new financial instrument standards when implemented will mainly bring the following influences
to the Company’s financial statements in 2020that is as follows.(a) Revenue
The contents and reasons of the
changes in accounting policies
The line items affected
The amounts affected
1 January 2020
Consolidated Company
Due to the implementation of the
new revenue standard the
Group reclassified the advances
from customers relevant to
service provision to contract
liabilities and reclassified the
advances received from
customers sales VAT tax
relevant to service provision to
other current liabilities.
Contract
liabilities
262026497 -
Other current
liabilities
30777314 -
Advances
from
customers
(292803811) -
The impact of the implementation of the new income standards on items related to the 2020 financial
statements compared to the original income standards is as follows:
The contents and reasons of the
changes in accounting policies
The line items affected
The amounts affected
31 December 2020
Consolidated Company
Due to the implementation of the
new revenue standard the
Group reclassified the advances
from customers relevant to
service provision to contract
liabilities and reclassified the
advances received from
customers sales VAT tax
relevant to service provision to
other current liabilities.
Contract
liabilities
296776624 -
Other current
liabilities
34286292 -
Advances
from
customers
(331062916) -
CSG HOLDING CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(31) Significant changes in accounting policies and accounting estimates(Cont’d)
The implementation of the above-mentioned revised standards has no impact on the equity
attributable to shareholders of the parent company and the equity of minority shareholders in the
consolidated financial statements of the Group.The contents and reasons of the
changes in accounting policies
The line items affected
The amounts affected
31 December 2020
Consolidated Company
Due to the implementation of the
new revenue standard the
Due to the implementation of the
New Income Standards the
Company reclassified the
contract performance
costs related to freight cost as
cost
Cost of revenue
134209048 -
Selling expenses (134209048) -
CSG HOLDING CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
3 Taxation
(1) The main categories and rates of taxes applicable to the Group are set out below:
Category Taxable basis Tax rate
Enterprise income tax Taxable income 0% to 25%
Value-added tax (“VAT”) (a) Taxable value-added amount (Tax payable is
calculated using the taxable sales amount multiplied
by the applicable tax rate less deductible VAT input
of the current period)
1% to 13%
City maintenance and
construction tax
VAT paid 1% to 7%
Educational surcharge VAT paid 3% to 5%
Some subsidiaries of the Group have used the “exempt credit refund” method on goods exported and
the refund rate is 0%-13%.
(2) Tax incentives
The main tax incentives the Group is entitled to are as follows:
Tianjin CSG Energy-Saving Glass Co. Ltd. (“Tianjin Energy Conservation”) passed review on a
high and new tech enterprise in 2018 and obtained the Certificate of High and New Tech Enterprise
the period of validity is three years. It applies to 15% tax rate for three years since 2018.
Dongguan CSG Architectural Glass Co. Ltd. (“Dongguan CSG”) passed review on a high and new
tech enterprise in 2019 and obtained the Certificate of High and New Tech Enterprise the period of
validity is three years. It applies to 15% tax rate for three years since 2019.Wujiang CSG East China Architectural Glass Co. Ltd. (“Wujiang CSG Engineering”) passed review on
a high and new tech enterprise in 2020 and obtained the Certificate of High and New Tech Enterprise
the period of validity is three years. It applies to 15% tax rate for three years since 2020.
Dongguan CSG Solar Glass Co. Ltd. (“Dongguan CSG Solar”) passed review on a high and new
tech enterprise in 2020 and obtained the Certificate of High and New Tech Enterprise the period of
validity is three years. It applies to 15% tax rate for three years since 2020.Yichang CSG Polysilicon Co. Ltd. (“Yichang CSG Polysilicon”) passed review on a high and new tech
enterprise in 2020 and obtained the Certificate of High and New Tech Enterprise the period of validity
is three years. It applies to 15% tax rate for three years since 2020.
Dongguan CSG PV-tech Co. Ltd. (“Dongguan CSG PV-tech”) passed review on a high and new
tech enterprise in 2019 and obtained the Certificate of High and New Tech Enterprise the period of
validity is three years. It applies to 15% tax rate for three years since 2019.Hebei Shichuang Glass Co. Ltd. (“Hebei Shichuang”) passed review on a high and new tech
enterprise in 2019 and obtained the Certificate of High and New Tech Enterprise the period of validity
is three years. It applies to 15% tax rate for three years since 2019.Wujiang CSG Glass Co. Ltd. (“Wujiang CSG”) passed review on a high and new tech enterprise in
2020 and obtained the Certificate of High and New Tech Enterprise and the period of validity was
three years. It applies to 15% tax rate for three years since 2020.
CSG HOLDING CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
3 Taxation (Cont’d)
(2) Tax incentives(Cont’d)
Xianning CSG Glass Co Ltd. (“Xianning CSG”) passed review on a high and new tech enterprise in
2020 and obtained the Certificate of High and New Tech Enterprise and the period of validity was
three years. It applies to 15% tax rate for three years since 2020.Xianning CSG Energy-Saving Glass Co. Ltd. (“Xianning CSG Energy-Saving”) passed review on a
high and new tech enterprise in 2018 and obtained the Certificate of High and New Tech Enterprise
and the period of validity was three years. It applies to 15% tax rate for three years since 2018.Yichang CSG Photoelectric Glass Co. Ltd. (“Yichang CSG Photoelectric”) passed review on a high
and new tech enterprise in 2018 and obtained the Certificate of High and New Tech Enterprise and
the period of validity was three years. It applies to 15% tax rate for three years since 2018.Yichang CSG Display Co. Ltd (“Yichang CSG Display”) passed review on a high and new tech
enterprisein 2018 and obtained the Certificate of High and New Tech Enterprise and the period of
validity was three years. It applies to 15% tax rate for three years since 2018.Qingyuan CSG New Energy-Saving Materials Co. Ltd. (“Qingyuan CSG Energy-Saving”) passed
review on a high and new tech enterprise in 2019 and obtained the Certificate of High and New Tech
Enterprise and the period of validity was three years. It applies to 15% tax rate for three years since
2019.
Hebei CSG Glass Co Ltd. (“Hebei CSG”) was recognised as a high and new tech enterprise in 2018
and obtained the Certificate of High and New Tech Enterprise and the period of validity was three
years. It applies to 15% tax rate for three years since 2018.Shenzhen CSG Applied Technology Co Ltd. (“Shenzhen Technology”) was recognised as a high and
new tech enterprise in 2018 and obtained the Certificate of High and New Tech Enterprise and the
period of validity was three years. It applies to 15% tax rate for three years since 2018.Xianning CSG Photoelectric Glass Co. Ltd. (“Xianning Photoelectric”) passed review on a high and
new tech enterprise in 2019 and obtained the Certificate of High and New Tech Enterprise the period
of validity is three years. It applies to 15% tax rate for three years since 2019.Sichuan CSG Energy Conservation Glass Co. Ltd. (“Sichuan CSG Energy Conservation”) obtains
enterprise income tax preferential treatment for Western Development and temporarily calculates
enterprise income tax at a tax rate of 15% for current year.
Chengdu CSG Glass Co. Ltd. (“Chengdu CSG”) obtains enterprise income tax preferential treatment
for Western Development and temporarily calculates enterprise income tax at a tax rate of 15% for
current year.
CSG HOLDING CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
3 Taxation (Cont’d)
(2) Tax incentives(Cont’d)
Qingyuan CSG New Energy Co. Ltd. (“Qingyuan CSG New Energy”) Suzhou CSG PV Energy Co.Ltd. (“Suzhou CSG PV Energy”) Jiangsu Wujiang CSG New Energy Co. Ltd. (“Wujiang CSG New
Energy”) and Yichang CSG New Energy Co. Ltd. (“Yichang CSG New Energy”) Zhangzhou CSGKibing PV Energy Co. Ltd. (“Zhangzhou CSG”) Heyuan CSG Kibing PV Energy Co. Ltd. (“Heyuan
CSG”) Shaoxing CSG Kibing PV Energy Co. Ltd. (“Shaoxing CSG”) Xianning CSG PV Energy Co.Ltd.(“Xianning CSG PV Energy”) and Zhanjiang CSG New Energy Co. Ltd. (“Zhanjiang CSG PV
Energy””)are public infrastructure project specially supported by the state in accordance with the
Article 87 in Implementing Regulations of the Law of the People's Republic of China on Enterprise
Income Tax and can enjoy the tax preferential policy of “three-year exemptions and three-year halves”
that is starting from the tax year when the first revenue from production and operation occurs the
enterprise income tax is exempted from the first to the third year while half of the enterprise income
tax is collected for the following three years.
CSG HOLDING CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements
(1) Cash at bank and on hand
31 December 2020 31 December 2019
Cash on hand 2725 4268
Cash at bank 1463954484 1781830762
Other cash balances 661831694 205145388
2125788903 1986980418
Including: Total overseas deposits 8610575 40403719
Other cash balances include margin deposits amounting to RMB1760707 (31 December 2019:
RMB155145388) which is restricted cash.
(2) Notes receivable
31 December 2020 31 December 2019
Trade acceptance notes 207966892 297023380
207966892 297023380
(a) As at 31 December 2020 notes receivable which have been endorsed or discounted by the Group but
are not yet due are as follows:
Derecognised Not derecognised
Trade acceptance notes 94174824
CSG HOLDING CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(3) Accounts receivable
31 December 2020 31 December 2019
Accounts receivable 714849669 678240286
Less: Provision for bad debts (33382536) (28559109)
681467133 649681177
(a) The ageing of accounts receivable is analysed as follows:
31 December 2020 31 December 2019
Within 1 year 613693950 618151739
1 to 2 years 51071700 38737774
2 to 3 years 30876459 13140899
Over 3 years 19207560 8209874
714849669 678240286
(b) Accounts receivable are analysed by category as follows:
31 December 2020 31 December 2019
Carrying amount Provision for bad debts Carrying amount Provision for bad debts
Amount
% of total
balance
Provision for
bad debts % Amount
% of total
balance
Provision for
bad debts %
Provision for bad debts by
groupings
Portfolio 1 682344324 95% (13641135) 2% 662934109 98% (13252932) 2%
Portfolio 2 223200 - (4464) 2% - - - -
Provided for bad bebts
individually 32282145 5% (19736937) 61% 15306177 2% (15306177) 100%
714849669 100% (33382536) 5% 678240286 100% (28559109) 4%
(c) For accounts receivable provided for bad debts by portfolio the expected credit impairment loss for
the portfolio is as follows:
31 December 2020 31 December 2019
Carrying amount Provision for bad debts Carrying amount Provision for bad debts
Amount Amount % Amount Amount %
Portfolio 1 682344324 (13641135) 2% 662934109 (13252932) 2%
Portfolio 2 223200 (4464) 2% - - -
682567524 (13645599) 2% 662934109 (13252932) 2%
(d) As at 31 December 2020 the bad debts of receivables was RMB 32282145 (31 December 2019:
RMB15306177) that to be provided individually. It mainly represented the goods receivable due from
a client of the part of subsidiary due to business dispute or deterioration of customer operations the
provision for bad debts was fully or partially accrued.(e) Accounts receivables were written off amount of RMB 297202 for this year (31 December 2019:
Nil ).
CSG HOLDING CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(3) Accounts receivable (Cont’d)
(f) As at 31 December 2020 Total balances for the five largest accounts receivable set out as below:
Balance
Provision for bad
debts
Percentage in total accounts
receivable balance
Total balances for the five largest
accounts receivable 219024315 4380486 31%
(4) Receivables Financing
31 December 2020 31 December 2019
Bank acceptance notes 382527782 258296826
382527782 258296826
(a) (4) As at 31 December 2020 receivables financing which have been endorsed or discounted by the
Group but are not yet due are as follows:
Derecognised Not derecognised
Bank acceptance notes 2163905352
(5) Advances to suppliers
(a) The ageing of prepayment is analysed below:
31 December 2020 31 December 2019
Amount
% of total
balance Amount
% of total
balance
Within 1 year 84647719 99% 76048960 97%
1 to 2 years 1162756 1% 2107931 3%
2 to 3 years 118166 - 39136 -
85928641 100% 78196027 100%
As at 31 December 2020 advances to suppliers over 1 year with a carrying amount of RMB1280922
(31 December 2019: RMB 2147067) were mainly prepaid to supplier for materials which were not
fully settled since the materials had not been received.
CSG HOLDING CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(5) Advances to suppliers (Cont’d)
(b) As at 31 December 2020 the five largest prepayment are analysed as follows:
Balance
Percentage in total
advances to
suppliers balance
Total balances for the five largest advances to suppliers 43679706 51%
(6) Other receivables
31 December 2020 31 December 2019
Receivables from special fund for talent 171000000 171000000
Refundable deposits 6723194 11767626
Payments made on behalf of other parties 18672346 15337999
Petty cash 969748 328077
Advances to suppliers(i) 10366164 11710142
Others 9615428 8486056
217346880 218629900
Less: Provision for bad debts (16377026) (15775036)
200969854 202854864
(i) The subsidiaries of Yingde CBM Mining Co. Ltd. mainly prepaid to supplier for materials.This year the
prepayments accounts are transferred to other receivables and the provision of the bad debts was
provided individually in current year.(a) The ageing of other receivables is analysed as follows:
31 December 2020 31 December 2019
Within 1 year 9644914 10868483
1 to 2 years 5528931 6159195
2 to 3 years 4491997 5740019
3 to 4 years 2154911 957121
4 to 5 years 725287 21484748
Over 5 years 194800840 173420334
217346880 218629900
CSG HOLDING CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(6) Other receivables (Cont'd)
(b) Other receivables are analysed by category as follows:
31 December 2020 31 December 2019
Carrying amount Provision for bad debts Carrying amount
Provision for bad
debts
Amount
% of total
balance
Provision for
bad debts % Amount
% of total
balance
Provision for
bad debts %
Provision for bad debts
by groupings
Portfolio 1
205106845 94% (4136991) 2% 206596853 94% (4138582) 2%
Provided for bad bebts
individually 12240035 6% (12240035) 100% 12033047 6% (11636454)
97%
217346880 100% (16377026) 8% 218629900 100% (15775036) 7%
(c) The reason for the bad debts was provided individually as the payment will not be recoverable due to
long aging time.(d) For other receivables provided for bad debts by portfolio the expected credit impairment loss for the
portfolio is as follows:
31 December 2020 31 December 2019
Carrying amount Provision for bad debts Carrying amount Provision for bad debts
Amount Amount % Amount Amount %
Portfolio 1 205106845 (4136991) 2% 206596853 (4138582) 2%
205106845 (4136991) 2% 206596853 (4138582) 2%
CSG HOLDING CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(6) Other receivables (Cont'd)
(e) Provision for bad debts
(f) As at 31 December 2020 the top 5 largest other receivables are analysed as bellow:
Nature of business Balance Ageing
Percentage in total
other receivables
balance
Provision for
bad debts
Company A Independent third party 171000000 Over 5Years 79% 3420000
Governmental
departmentB Independent third party 11067754 Over 5Years 5% 221355
Company C Independent third party 10366164 Over 5Years 5% 10366164
Company D Independent third party 2397512 1 to 3years 1% 47950
Company E Independent third party 1800000 3 to 4 years 1% 36000
196631430 91% 14091469
bad debts Stage 1 Stage 2 Stage 3 31 December 2019
Expected credit
losses in the
following 12
months (grouping)
Lifetime expected
credit losses
(credit unimpaired)
Lifetime expected
credit losses
(creditimpaired)）
Total
1 January 2020 4138582 - 11636454 15775036
Amounts in current year - - - -
——Transferred stage 2 - - - -
——Transferred stage 3 - - - -
—— Reversed stage 2 - - - -
—— Reversed stage 1 - - - -
Increased in current year 374387 - 1550966) 1925353
Reversed in current year (375978) - (947385) (1323363)
Disposal in current year - - - -
Write-off in current year - - - -
Other movements - - - -
31 December 2020 4136991 - 12240035 16377026
4136991 12240035 16377026
CSG HOLDING CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(7) Inventories
(a) Inventories are summarised by category as follows:
31 December 2020 31 December 2019
Carrying amount
Provision for
decline in the
value of
inventories Carrying amount Carrying amount
Provision for
decline in the
value of
inventories Carrying amount
Raw materials 274659097 (1756185) 272902912 227091252 (1930091) 225161161
Work in progress 28355865 - 28355865 31568189 - 31568189
Finished goods 479482759 (9369218) 470113541 521700720 (3873252) 517827468
Turnover materials 44603984 (819984) 43784000 38315093 (550221) 37764872
827101705 (11945387) 815156318 818675254 (6353564) 812321690
(b) Provision for decline in the value of inventories are analysed as follows:
31 December
2019 Increase in current year Reversal in current year
31 December
2020
Raw materials 1930091 270925
(444831) 1756185
Finished goods 3873252 9354435
(3858469) 9369218
Turnover materials 550221 269763
- 819984
6353564 9895123
(4303300) 11945387
(c) Provision for decline in the value of inventories is as follows:
Basis for provision for decline in the value of
inventories
Reasons of reversal of the
decline in the value of
inventories
Finished goods
The drop in product prices results in the difference as
the net realizable value is lower than the book value Sold
Raw materials
The amount of book value less net realisable value
due to sluggish or damaged raw materials Used
Turnover
materials
The amount of book value less net realisable value
due to sluggish or damaged raw materials Used
CSG HOLDING CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(8) Other current assets
31 December 2020 31 December 2019
VAT to be offset 110350299 110370231
Enterprise income tax prepaid 17508242 18012235
VAT input to be recognised 12106681 19613465
Entrusted loan - 300000000
Others 66322 -
140031544 447995931
(9) Investment properties
Buildings and Land use rights
31 December 2019
Increased in current year：
Transfer from fixed assets and intangible assets in the
current year 203173300
Fair value movements 179911200
31 December 2020 383084500
(i) On July 7 2020 the ninth interim meeting of the board of directors of the company resolved to
consider and approve the "Proposal on Converting Part of Self-Use Properties to Investment
Investment Properties" and decided to change the use of certain self-use buildings and related
land use rights to Lease out to obtain rental income.On the conversion date the portion of the fair value exceeding the book value is deducted from
the deferred income tax liabilities due to taxation differences and included in other
comprehensive income.
In 2020 the impact of changes in the fair value of investment property on the company's
current profit and loss is RMB 179911200.
As of 31 December 2020 there was no investment property secured by company..
CSG HOLDING CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(10) Fixed assets
Buildings
Machinery and
equipment
Moto rvehicles
and others Total
Cost
31 December 2019 3900630113 11813659817 222517407 15936807337
Increase in current year
Acquisition 1028289 58988168 22587282 82603739
Transfers from
construction in progress 224835657 1536894370 6767152 1768497179
Decrease in current year
Disposal or retirement - (39718908) (11157085) (50875993)
Transfer to construction in
progress
(149539330) (1350729847) (637414) (1500906591)
Others (41037039) (9143295) (12201) (50192535)
31 December 2020 3935917690 12009950305 240065141 16185933136
Accumulated depreciation
31 December 2019 931980928 4611711739 214066407 5757759074
Increase in current year
Provision 118425705 726157137 18825740 863408582
Decrease in current year
Disposal or retirement - (33586495) (10893344) (44479839)
Transfer to construction in
progress (22615651) (322137730) (345585)
(345098966)
Others (27118329) (107789) (568) (27226686)
31 December 2020 1000672653 4982036862 221652650 6204362165
Provision for impairment loss
31 December 2019 14224161 381739978 46823 396010962
Increase in current year
Provision 20742526 407360427 30020 428132973
Others - 117613668 - 117613668
Decrease in current year
Disposal or retirement - (2378007) - (2378007)
Transfer to construction in
progress -
(103453194) - (103453194)
31 December 2020 34966687 800882872 76843 835926402
Book value
31 December 2020 2900278350 6227030571 18335648 9145644569
31 December 2019 2954425024 6820208100 8404177 9783037301
CSG HOLDING CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(10) Fixed assets (Cont'd)
(a) Fixed assets with pending certificates of ownership
Carrying amount Reasons for not yet obtaining certificates of title
Buildings 682255975
Have submitted the required documents and are in the process
of application or the related land use right certificate pending
CSG HOLDING CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(11) Construction in progress
31 December 2020 31 December 2019
Carrying amount
Provision for
impairment loss Carrying amount Carrying amount
Provision for
impairment loss Carrying amount
Yichang CSG polysilicon tech-
innovation project 1535667571 (594037334) 941630237 1532811638 (375097200) 1157714438
Qingyuan CSG Phase I
Technological Transformation
Project 413852963 - 413852963 - - -
Dongguan Photovoltaic Building B
450MWPERC battery technology
upgrade project 204801994 - 204801994 - - -
Dongguan Solar Energy Phase I
and II Renewal Project 51472490 (12749513) 38722977 78970995 (40248018) 38722977
Zhaoqing CSG High-end Energy-
saving Glass Production Line
Project 47026508 - 47026508 - - -
Sapphire Project for LED 32420412 (32420412) - 32420412 (32420412) -
Yichang Display Device Company
Flat Panel Display Project 44013628 - 44013628 366268866 (14160474) 352108392
Anhui Fengyang Solar Energy
Equipment Manufacturing Base
Project 15039984 - 15039984 - - -
Dongguan solar energy processing
production line project 5239399 - 5239399
Wujiang Float Processing
Production Line Project 3572478 - 3572478 - - -
Zhaoqing CSG High-end
Automobile Glass Production Line
Project 3403090 - 3403090 - - -
Anhui Fengyangnian Quartz Sand
Construction Project 1775552 - 1775552 - - -
Qingyuan CSG ultra-white electronic
glass and ultra-white special glass
production line project - - - 88706261 - 88706261
Dongguan Photovoltaic Building A
PERC Battery Technology Upgrade
Project - - - 67981191 - 67981191
Qingyuan Quartz Material
Processing Production Line Project - - - 34172703 - 34172703
Wujiang float glass environmental
protection renovation project - - - 10281838 - 10281838
Others 174301801 - 174301801 152858218 (405983) 152452235
2532587870 (639207259) 1893380611 2364472122 (462332087) 1902140035
CSG HOLDING CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(11) Construction in progress (Cont'd)
(a) Changes in major construction projects
Project name Budget
31 December
2019
Increase in
current year
Transfer to
fixed assets in
current year
Other decreases
in current year
31
December
2020
Proportio
n
between
engineeri
ng input
and
budget (i)
Amount of
borrowing
costs
capitalised
Including:
Amount of
borrowing
costs
capitalised
in 2019
Capitalis
ation rate
for in
current
yea Source of fund
Yichang CSG Polysilicon Technical Transformation Project 49520000 1532811638 2855933 - - 1535667571 98% - - - Internal fund and bank loan
Qingyuan CSG Phase I Technological Transformation Project 217690000 - 426308753 (242276) (12213514) 413852963 3% - - - Internal fund and bank loan
Dongguan Photovoltaic Building B 450MWPERC battery
technology upgrade project 100990000 - 211570794 - (6768800) 204801994 - - - - Internal fund and bank loan
Dongguan Solar Energy Phase I and II Renewal Project 396410000 78970995 - - (27498505) 51472490 80% - - - Internal fund
Zhaoqing CSG High-end Energy-saving Glass Production Line
Project 500000000 - 47739871 (713363) - 47026508 10% 90567 90567 3.80% Internal fund and bank loan
Sapphire Project for LED 35000000 32420412 - - 32420412 93% 4650543 - - Internal fund and bank loan
Yichang Display Device Company Flat Panel Display Project 1970000000 366268866 32578332 (354833570) - 44013628 90% 11560142 - - Internal fund and bank loan
Anhui Fengyang Solar Energy Equipment Manufacturing Base
Project 3739020000 - 15039984 - - 15039984 - - - -
Non-public offering of shares and
Internal fund and bank loan
Dongguan solar energy processing production line project 76140000 - 5239399 - - 5239399 7% - - - Internal fund and bank loan
Wujiang Float Processing Production Line Project 158850000 - 3572478 - - 3572478 2% - - - Internal fund and bank loan
Zhaoqing CSG High-end Automobile Glass Production Line
Project 609830000 - 3403090 - - 3403090 1% - - - Internal fund and bank loan
Anhui Fengyangnian Quartz Sand Construction Project 739990000 - 1775552 - - 1775552 - - - - Internal fund and bank loan
Qingyuan CSG ultra-white electronic glass and ultra-white
special glass production line construction project 785000000 88706261 528298501 (617004762) - - 79% 11066250 8889552 5.02% Internal fund and bank loan
Dongguan Photovoltaic Building A PERC Battery Technology
Upgrade Project 67180000 67981191 - (58543224) (9437967) - 100% 1071313 162542 3.72% Internal fund and bank loan
Qingyuan Quartz Material Processing Production Line Project 36478048 34172703 - (31773011) (2399692) - 98% - - - Internal fund
Wujiang float glass environmental protection renovation project 50300000 10281838 2009207 (12291045) - - 61% - - - Internal fund
Yichang CSG Silicon Wafer Construction Project 29010000 - 525207950 (525207950) - - 100% - - - Internal fund
Others 1131630461 152858218 195517691 (167887978) (6186130) 174301801 295421 20020 Internal fund and bank loan
10693038509 2364472122 2001117535 (1768497179) (64504608) 2532587870 28734236 9162681
(i) The proportion of project expenditure incurred to the budget is determined by the accumulative expenditures incurred divided by the total budget.Some of the projects are transferred to property plant and equipment because the construction is completed.
CSG HOLDING CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(11) Construction in progress (Cont'd)
(b) Provision for impairment of construction in progress
Project name
31
December
2019
provision
increased in
current year
provision
from long-
term assets
trasfered in
current year
Decrease in
current year
31 December
2020
Dongguan Solar Energy Phase I and II
Renewal Project 40248018 - - (27498505) 12749513
Flat Panel Display Project of Yichang
Display Company 14160474 - - (14160474) -
Sapphire Project for LED 32420412 - - - 32420412
Yichang CSG PolysiliconTechnological
Transformation Project (i) 375097200 218940134 - - 594037334
Yichang CSG Silicon Wafer
Construction Project - - 103453194 (103453194) -
Others 405983 - - (405983) -
462332087 218940134 103453194 (145518156) 639207259
(i) Due to the fierce competition in the domestic polysilicon industry by the‘section 8 of accounting
standards for business enterprises– impairments of assets’ the management of the company
identified and ran impairment tests for some parts of related assets showing a sign of impairmentand
the provision for impairment was noted by company.
CSG HOLDING CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(12) Intangible assets and development expenditure (Cont'd)
Land use
rights
Patents and
proprietary
technologies
Exploitation
rights
Others Total
Cost
31 December 2019
1026603700 346510092 4456536 39486039 1417056367
Increased in current year
Acquisition in current year 87344000 - 115829 2442298 89902127
Transfers from development
expenditure in current year
- 65885948 - - 65885948
Decreased in current year
Others (9433931) - - (57265) (9491196)
31 December 2020 1104513769 412396040 4572365 41871072 1563353246
Accumulated amortisation
31 December 2019
191426527 128437706 4456536 34698831 359019600
Increased in current year
Provision in current year 22635053 32857408 5815 2804908 58303184
Decreased in current year
Others (6841165) - - (57108) (6898273)
31 December 2020 207220415 161295114 4462351 37446631 410424511
Provision for impairment loss
31 December 2019
- 13201347 - 9133 13210480
31 December 2020
- 13201347 - 9133 13210480
Carrying amount
31 December 2020 897293354 237899579 110014 4415308 1139718255
31 December 2019
835177173 204871039 - 4778075 1044826287
As at 31 December 2020 ownership certificates of land use rights (“Land ownership Certificates”) for
certain land use rights of the Group with carrying amounts of approximately RMB 4739196 (cost: RMB
6586712) had not yet been obtained by the Group (31 December 2019: carrying amount: RMB
4983945 cost: RMB 6586712). The Company’s management are of the view that there is no legal
restriction for the Group to apply for and obtain the Land Ownership Certificates and has no adverse
effect on the Group’s business operation.
CSG HOLDING CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(12) Intangible assets and development expenditure (Cont'd)
Research expenditure is analysed below:
31 December
2019
Increase in
current year
Decrease in current year
31 December
2020
Recognised as
expenses
Recognised as
intangible assets
Development
costs 85240356 29798999 (65885948) 49153407
In 2020 the total amount of research and development expenditures of the Group was RMB
434641497 (2019: RMB 440884641) including RMB 404842498 (2019: RMB 366871283)
recorded in income statement for current period and the research and development expenditure with
the amount of RMB 65885948 recognised as intangible assets for the current period (2019:
63322259). As at 31 December 2020 the intangible assets arising from internal research and
development accounted for 20.56% of total of intangible assets (31 December 2019: 18.03%).
(13) Goodwill
(a) Original Book value of goodwill
31 December
2019
Increase in
current year
Decrease
in current
year
31 December
2020
Tianjin CSG Architectural Glass Co. Ltd. 3039946 - - 3039946
Xianning CSG Photoelectric 4857406 - - 4857406
Shenzhen CSG Display(i) 389494804 - - 389494804
397392156 - - 397392156
(b) Impairment of goodwill
31 December
2019
Increase in
current year
Decrease
in current
year
31 December
2020
Shenzhen CSG Display(i) 82294400 81722063 164016463
82294400 81722063 164016463
The calculation of the impairment used the higher conclusions of the two future measurement methods
of the present value of the expected future cash flow and the fair value minus the disposal expenses.The methods assumptions asset groups etc. of the goodwill impairment test this year was
consistented with the date of purchase and the previous year.(i) Shenzhen CSG Display adopting the method of discounting future cashflow is with the following main
hypothesizes:
2020 2019
income growth for the predicted period -7%-21% -1%-33%
income growth for the stabilized period 0% 0%
gross profit margin 22%-27% 20%-23%
discount rate 12% 11%
CSG HOLDING CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(13) Goodwill (Cont'd)
Combining with the prediction of the future business and independent third party appraisal
institutionthe Company's management considered that the goodwill was impaired RMB 81722063
as at 31 December 2020 (2019: RMB 61622400) .
(14) Deferred tax assets and liabilities
(a) Deferred tax assets before offsetting
31 December 2020 31 December 2019
Deductible temporary
differences Deferred tax assets
Deductible temporary
differences Deferred tax assets
Provision for asset
impairments
736119311
113183894
864645227
131772057
Tax losses 509689080 86461610 497964481 83129146
Government grants 175322807 27297200 182452278 27367842
Accrued expenses 7184597 1077690 30032597 4504890
Depreciation of fixed
assets
18804540
2822699
19790300
2968545
1447120335 230843093 1594884883 249742480
Including:
Expected to be reversed within
one year (inclusive)
11504204 18423315
Expected to be reversed after
one year
219338889 231319165
230843093 249742480
(b) Deferred tax liabilities before offsetting
31 December 2020 31 December 2019
Taxable temporary
differences
Deferred tax
liabilities
Taxable temporary
differences
Deferred tax
liabilities
Depreciation of fixed
assets
540143676
82946754
494317001
74147550
Investment real estate
differences between tax
rules and
accounting rules
370245713
55536857
-
-
910389389 138483611 494317001 74147550
CSG HOLDING CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(14) Deferred tax assets and liabilities(Cont’d)
Including:
Expected to be reversed within
one year (inclusive)
7100568 13617606
Expected to be reversed after one
year
131383043 60529944
138483611 74147550
(c) Deductible losses that are not recognised as deferred tax assets of the Group are analysed as follows:
31 December 2020 31 December 2019
Deductible losses 1458462329 613806990
The deductible tax losses not recognised as deferred tax assets mainly represented the tax losses of
the Company and some subsidiaries. Management was unable to expect that whether there were
taxable profit would be available in the future against which these deductible tax losses can be utilised
and accordingly did not recognise the deferred tax assets.(d) The tax losses for which no deferred tax assets were recognised will expire in the following years:
31 December 2020 31 December 2019
2020 - 94430197
2021 111625585 111625585
2022 83303539 83303539
2023 146238837 146238837
2024 178208832 178208832
2025 939085536 -
1458462329 613806990
(e) The net balances of deferred tax assets and liabilities after offsetting are as follows:
31 December 2020 31 December 2019
Net deferred tax
assets or liabilities
Deductible/taxable
temporary differences
after offsetting
Net deferred tax
assets or liabilities
Deductible/taxable
temporary differences
after offsetting
Deferred tax assets 194979414 1214859410 205792587 1301885596
Deferred tax liabilities 102619932 678128464 30197657 201317714
CSG HOLDING CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(15) Other non-current assets
31 December 2020 31 December 2019
Prepayment for equipment and project 186849445 88489893
Prepayment for lease of land use rights 6510000 31910000
193359445 120399893
(16) Impairment of asset
31 December
2019
Increase in
current year
Other
Increased in
current year
Reversal in
current year
Written off in
current year
Other
decreased in
current year
31 December
2020
Provision for bad debts 44334145 17652957 - (11930338) (297202) - 49759562
Including: Provision for bad debts
of accounts receivable 28559109 15727604 - (10606975) (297202) - 33382536
Provision for bad debts
of other receivables
15775036 1925353 - (1323363) - - 16377026
Provision for decline in the value of
inventories 6353564 9895123 - (182199) (4121101) - 11945387
Provision for impairment of fixed
assets 396010962 428132973 117613668 - (2378007) (103453194) 835926402
Provision for impairment of
construction in progress 462332087 218940134 103453194 - (27904488) (117613668) 639207259
Provision for impairment of
intangible assets 13210480 - - - - - 13210480
Provision for impairment of
goodwill 82294400 81722063 - - - - 164016463
1004535638 756343250 221066862 (12112537) (34700798) (221066862) 1714065553
CSG HOLDING CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(17) Short-term borrowings
31 December 2020 31 December 2019
Credit loan 49800000 1687000000
Guaranteed (i) 298095571 543969137
Mortgage loan 5000000 10000000
352895571 2240969137
(i) As at 31 December 2020 the Company provided its subsidiaries with guarantee for the short-
term borrowings of RMB 298095571 (31 December 2019: RMB 543969137).
As at 31 December 2020 the interest of short-term borrowings varied from 2.05% to 4.20% (31
December 2019: 2.95% to 4.79%).
(18) Notes payable
31 December 2020 31 December 2019
Trade acceptance 9903213 -
Bank acceptance notes 134947979 232063968
144851192 232063968
All notes payable are due within one year.
(19) Accounts payable
31 December 2020 31 December 2019
Materials payable 755509571 728499891
Equipment payable 209292511 174902946
Construction expenses payable 146976774 93584879
Freight payable 70011499 68149272
Utilities payable 49441605 28835685
Others 6601091 6559106
1237833051 1100531779
As at 31 December 2020 the amount of accounts payable over 1 year was approximately
RMB120702169 (31 December 2019: RMB180273623) which mainly comprised payables for
construction and equipment. As the construction work had not passed the final acceptance test yet the
balance was not yet settled.
CSG HOLDING CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(20) Advances from customers
31 December 2020 31 December 2019
Advances for goods from customers - 292803811
(21) Contract liabilities
31 December 2020 31 December 2019
Advances for goods from customers 296776624 -
(22) Employee benefits payable
31 December 2020 31 December 2019
Short-term employee benefits payable (a) 342315790 337855741
Defined contribution plans payable (b) 461 10505
Termination benefits(c) 35915 -
342352166 337866246
(a) Short-term employee benefits
31 December
2019
Increase in
current year
Decrease in
current year
31 December
2020
Wages and salaries bonus
allowances and subsidies 317472525 1351286940 (1346141880) 322617585
Social security contributions 5447 36721237 (36721396) 5288
Including: Medical insurance 4834 33913592 (33913469) 4957
Work injury insurance 234 287029 (287263) -
Maternity insurance 379 2520616 (2520664) 331
Housing funds 2156229 34930142 (36068186) 1018185
Labour union funds and
employee education funds 18221540 14179821 (13726629) 18674732
337855741 1437118140 (1432658091) 342315790
CSG HOLDING CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(22) Employee benefits payable(Cont’d)
(b) Defined contribution plans
31 December
2019
Increase in
current year
Decrease in
current year
31 December
2020
Basic pensions 10401 34790897 (34800854) 444
Unemployment insurance 104 1461269 (1461356) 17
10505 36252166 (36262210) 461
(c) Termination benefits
31 December
2019
Increase in
current year
Decrease in
current year
31 December
2020
Other dismissal welfare - 18751604 (18715689) 35915
- 18751604 (18715689) 35915
(23) Taxes payable
31 December 2020 31 December 2019
Enterprise income tax payable 90295709 49932889
VAT payable 82055265 45587584
Housing property tax payable 3937112 4270528
Individual income tax payable 3600603 5451521
City maintenance and construction tax payable 6414982 3629966
Educational surcharge payable 4762191 2726651
Environmental tax payable 1901375 1712052
Others 1953834 2113853
194921071 115425044
(24) Other payables
31 December 2020 31 December 2019
Interest payable 132133902 73251086
Dividend payable - 2985563
Other payables 155199090 275138126
287332992 351374775
CSG HOLDING CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(24) Other payables(Cont’d)
1、 Interest payable
1、 31 December 2020 31 December 2019
Medium term notes 37955556 66227425
Interest of long-term borrowings with periodic
payments of interest and return of principal at maturity
1590247
474136
short-term borrowings 330034 6549525
corporate bonds 92258065 -
132133902 73251086
2、 Dividend payable
31 December 2020 31 December 2019
Restricted share dividend payable - 2985563
- 2985563
3、 Other payables
31 December 2020 31 December 2019
Guarantee deposits received from construction
contractors
77932889 75417942
Accrued cost of sales (i) 38943663 43270188
Payable for contracted labour costs 16548708 17947192
Temporary receipts for third parties 10298957 12276662
Deposit for disabled 4680725 4735246
Restricted share repurchase obligation - 118066397
Others 6794148 3424499
155199090 275138126
(i) It represented the payment made to external third parties arising from undertaking the rights of
debtor and creditor comprising water and electricity professional service fee and travelling
expenses etc.
CSG HOLDING CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(25) Current portion of non-current liabilities
31 December 2020 31 December 2019
Current portion of long-term borrowings
- Guaranteed 127531709 125475000
Medium term notes due within 1 year 800000000 1200000000
Current portion of finance lease - 386981928
927531709 1712456928
(26) Other current liabilities
31 December 2020 31 December 2019
Output VAT to be transferred 34286292 -
Other 300000 300000
34586292 300000
CSG HOLDING CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(27) Long-term borrowings
31 December 2020 31 December 2019
Medium term notes - 800000000
Guaranteed 153253983 190225000
Credit loan 700000000 330000000
853253983 1320225000
(i) As at 31 December 2020 the interest of long-term borrowings varied from 3.40% to 4.60% (31
December 2019: 4.70% to 7.00%).
(28) Debentures payable
31 December 2020 31 December 2019
Corporate bonds 1994020348 -
1994020348 -
Debentures
name
Par
value
Date
of issue Term
Issue
amount
31 December
2019
Issued in the
current year
Interest
accrued
at par value
Amortisation
of premium/
discount
Decreased in
current year
31 December
2020
20 CSG 01 100
2020-3-24
To
2020-3-25
3 years 2000000000 - 2000000000 92258065 (5979652) - 1994020348
2000000000 - 2000000000 92258065 (5979652) - 1994020348
(i) In March 2020 after approved by the China Securities Regulatory Commission the company
was approved to publicly issue 2020 corporate bonds (first tranche) to qualified investors with a
face value of RMB 100 an issuance amount of RMB 2 billion and a period of 3 years (annual
interest payment principal repayment at maturity) the coupon rate is 6%; the issuance date is
March 24 2020 to March 25 2020 and the value date is March 25 2020.
(29) Long-term account payable
31 December 2020 31 December 2019
Finance lease payable - 87240529
CSG HOLDING CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(30) Deferred income
31 December 2020 31 December 2019
Government grants 498056081 513925557
Government grants are analysed as follows:
Government grants
31 December
2019
Increase in
current year
Other
decrease in
current year
Non-operating
income in current
year
31 December
2020
Assets/Income
related
Tianjin Energy-saving Golden Sun
Project (i) 46967335 - - (3374892) 43592443 Assets related
Dongguan Engineering Golden
Sun Engineering Project (ii) 37826250 - - (2751000) 35075250 Assets related
Hebei CSG Golden Sun
Engineering Project (iii) 38500000 - - (2750000) 35750000 Assets related
Xianning CSG Golden Sun Project
(iv) 41921917 - - (3030500) 38891417 Assets related
Wujiang CSG Infrastructure
Compensation (v) 31545822 - - (4041538) 27504284 Assets related
Qingyuan Energy Saving Project
(vi) 15849167 - - (1672551) 14176616 Assets related
Yichang Polysilicon Project (vii) 16171875 - - (2812500) 13359375 Assets related
Yichang CSG Silicon Wafer
Auxiliary Project (viii) 15275961 5530000 - (2349276) 18456685 Assets related
Sichuan Energy-saving Glass
Project (ix) 7167420 - - (1654020) 5513400 Assets related
Group Coating Laboratory Project
(x) 3758760 - - (1356960) 2401800 Assets related
Yichang High Purity Silicon
Material Project (xi) 3023975 - - (303178) 2720797 Assets related
Yichang Semiconductor Silicon
Material Project (xii) 2866666 - - 2866666 Assets related
Yichang Display Company Project
(xiii) 45767648 - - (2534478) 43233170 Assets related
Xianning Optoelectronics Project
(xiv) 7280000 - - (520000) 6760000 Assets related
Shenzhen Medical Equipment
Subsidy Project (xv) - 8730000 - (388000) 8342000 Assets related
Group Talent Fund Project (xvi) 171000000 - - 171000000 Assets related
Others 29002761 5315372 - (5905955 ) 28412178
Related
assets/Income
related
513925557 19575372 - (35444848) 498056081
(i) The allowance was granted by Tianjin Municipal Government. The allowance was used for
establishing PV power station by Tianjin Energy Conservation Company. The facilities belonged
to Tianjin Energy Conservation Company. The allowance will be credited to income statement in
20 years the useful life of the PV power statio
(ii) The allowance was granted by Dongguan Municipal Government. The allowance was used for
establishing PV power station by Dongguan CSG Architectural Glass Co. Ltd. The facilities
belonged to Dongguan CSG upon completion. The allowance will be credited to income
statement in 20 years the useful life of the PV power station.(iii) The allowance was granted by Langfang Municipal Government. The allowance was used for
establishing PV power station by Hebei CSG Glass Co. Ltd. ("Hebei CSG"). When the facilities
were set up they belonged to Hebei CSG. The allowance will be credited to income statement in
20 years the useful life of the PV power station.
CSG HOLDING CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(30) Deferred income (Cont’d)
(iv) The allowance was granted by Xianning Municipal Government. The allowance was used for
establishing PV power station by Xianning CSG Glass Co Ltd. The facilities belonged to
Xianning CSG upon completion. The allowance will be credited to income statement in 20 years
the useful life of the PV power station.(v) The allowance was infrastructure compensation granted by Wujiang municipal government and
will be credited to income statement in 15 years the shortest operating period as committed by
the Group.(vi) The allowance was granted by Guangdong Province and which was a pilot project for strategic
emerging industry clusters development and was used to establish high performance ultra-thin
electronic glass production lines by Qingyuan CSG. The allowance will be credited to income
statement in 10 years the useful life of the production line.(vii) The balance represented amounts granted to Yi Chang CSG polysilicon Materials Co. Ltd. by
Yichang City Dongshan Development Corporation under the provisions of the investment
contract signed between the Group and the Municipal Government of Yi Chang. The proceeds
were designed for the construction of electricity transformer and the pipelines. Yichang
polysilicon is entitled to the ownership of the facilities， which will be amortised by 16 yearsaccording to the useful life of the converting station.(viii) It represented the government supporting fund obtained by Yichang polysilicon from the
acquiring of the assets and liabilities of Crucible project of Yichang Hejing Photoelectric Ceramic
Co. Ltd. The proceeds would be amortised and credited to income statement by 16 years after
related assets were put into use.(ix) It represented the funds granted by Chengdu local government for energy glass project. It will be
amortised and credited to income statement in 15 years in accordance with the minimum
operating period committed by the Group.(x) The allowance was granted by Shenzhen City Development and Reform Commission for the
development of Group Coating Film experimental project. The grant will be amortised and
credited to income statement in the estimated useful life of the relevant fixed assets.(xi) It represented the funds granted by Hubei local government for inport discount complement and
international corporation special subsidy. The grant will be amortised and credited to income
statement by 12 to 15 years.(xii) It represented the special subsidy of Yichang National Regional Strategic Emerging Industry
Development Pilot Project II which is used to complement Yichang CSG PolysSilicon “Hubeisemiconductor silicon preparative technique project laboratory”. The grant will be amortised and
credited to income statement by 15 years.(xiii) It represented the funds granted by Yichang Municipal Government for Yichang CSG Display
Company's flat project construction support funds and construction of coil coating three-line
project. The grant will be amortised and credited to income statement by 15 years.(xiv) It represented the funds granted by Xianning Government of the Project supporting fund for
photoconductive glass production linewhich is used to pay for Xianning CSG Glass Co. Ltd.constructing the project of photoelectric photoelectric optical glass production line . After the
completion of the production line the ownership belongs to Xianning photoelectric. The
allowance will be credited to income statement in 8 years the useful life of the production line.
CSG HOLDING CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(30) Deferred income (Cont’d)
(xv) The allowance was granted by Shenzhen Municipal Government. The allowance was used for
the production line of epidemic prevention materials for Shenzhen CSG Medical Technology Co.Ltd. The facilities belonged to Shenzhen CSG Medical Technology Co. Ltd upon completion.The allowance will be credited to income statement with the useful life of the production line.(xvi) The allowance was granted by Administrative Commission of Yichang High-tech Industrial
Development Zone. For senior management personnel engineering technical personnel and
senior professional technical team who are working at Yichang or plane to introduction RMB171
million fund was set up as a special fund for talent introduction and housing resettlement.
(31) Share capital
Movement for the year ended 31 December
2020
31 December
2019
New issues
during the
year
Bonus
issue Capitalisation Others
31 December
2020
RMB-denominated ordinary shares 1961323047 - - - - 1961323047
Limited selling condition shares 36222898 - - - (36222898) -
Domestically listed foreign shares 1109369060 - - - - 1109369060
3106915005 - - - (36222898) 3070692107
The par value of the RMB-denominated ordinary shares is RMB1 and that of domestically listed foreign
shares is HKD1.Movement for the year ended 31 December 2019
31 December
2018
New issues
during the year
Bonus
issue Capitalisation Others
31 December
2019
RMB-denominated ordinary shares 1779466998 - - 177946699 3909350 1961323047
Limited selling condition shares 75292875 - - 3764855 (42834832) 36222898
Domestically listed foreign shares 1008517328 - - 100851732 - 1109369060
2863277201 - - 282563286 (38925482) 3106915005
CSG HOLDING CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(32) Capital surplus
31 December 2019
Increase in
current year
Decrease in
current year 31 December 2020
Share premium 738834850 - (83410590) 655424260
Other capital surplus (55615492) - (2811683) (58427175)
Share of changes in equity other than
comprehensive income and profit
distribution of investees under the
equity method 757420 - - 757420
Share-based payment 2811683 - (2811683) -
Transfer of capital surplus recognised
under the previous accounting system (2250222) - - (2250222)
Disposal of fractional shares 1316208 - - 1316208
Purchase of minority interests (87197562) - - (87197562)
Shareholders interest-free loans 28946981 - - 28946981
683219358 - (86222273) 596997085
31 December 2018
Increase in
current year
Decrease in
current year 31 December 2019
Share premium 1123780211 2978832 (387924193) 738834850
Other capital surplus (28440790) 24845972 (52020674) (55615492)
Share of changes in equity other than
comprehensive income and profit
distribution of investees under the
equity method 757420 - - 757420
Share-based payment 29986385 24845972 (52020674) 2811683
Transfer of capital surplus recognised
under the previous accounting system (2250222) - - (2250222)
Disposal of fractional shares 1316208 - - 1316208
Purchase of minority interests (87197562) - - (87197562)
Shareholders interest-free loans 28946981 - - 28946981
1095339421 27824804 (439944867) 683219358
Changes in Capital reserve this year are as follows：
After the company held the 2019 Annual General Meeting of Shareholders on May 21 2020 the
"Proposal on Repurchase and Cancellation of Certain Restricted Shares in the Restricted Stock
Incentive Plan" was reviewed and approved and 14 non-compliant shares were repurchased and
cancelled. All restricted stocks for which the original incentive object has been granted but not yet lifted
the restriction on sales total 909936 shares. On June 16 2020 the company has completed the
cancellation procedures of the aforementioned restricted stocks.
CSG HOLDING CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(32) Capital surplus(Cont’d)
After the company held the 2019 Annual General Meeting of Shareholders on May 21 2020 the
"Proposal on Repurchase and Cancellation of Restricted Stocks That Did Not Meet the Unlocking
Conditions of the Third Unlocking Period" was reviewed and approved and 451 shareholders were
reviewed and agreed to repurchase and cancel. The restricted stocks for which the incentive objects
did not meet the unlocking conditions of the third unlocking period totaled 35312962 shares. As of
June 16 2020 the company has completed the cancellation procedures of the aforementioned
restricted stocks.
(33) Treasury shares
31 December 2019
Increase in
current year
Decrease in
current year 31 December 2020
Obligations of restricted share buybacks 118066397 - 118066397 -
118066397 - 118066397 -
Description of changes in treasury stocks: the Company repurchased and cancelled the restricted
shares this year to offset treasury shares.
CSG HOLDING CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(34) Other comprehensive income
Other comprehensive income in Income Statement for the year ended 31 December 2020
31 December
2019
Attributable to
parent
company
after tax
31 December
2020
Actual amount
before tax for
current year
Less: Reclassification
of previous other
comprehensive
income to profit or
loss in current year
Less: Income
tax expenses
Attributable to
parent company
after tax
Attributable to
minority
shareholders
after tax
- - - - - - - -
Other comprehensive income items which
will be reclassified subsequently to profit
or loss - - - - - - -
Financial rewards for energy-saving
technical retrofits 2550000 - 2550000 -
-
-
-
-
Difference on translation of foreign
currency financial statements 4015864 (5900842) (1884978) (5900842) -
-
(5900842)
-
Income generated when self-property and
land use rights are converted into
investment property ---- 161151797 161151797 189590349
-
28438552 161151797
-
6565864 155250955 161816819 183689507 - 28438552 155250955 -
Other comprehensive income in Income Statement for the year ended 31 December 2019
31 December
2018
Attributable to
parent
company
after tax
31 December
2019
Actual amount
before tax for
current year
Less: Reclassification
of previous other
comprehensive
income to profit or
loss in current year
Less: Income
tax expenses
Attributable to
parent company
after tax
Attributable to
minority
shareholders
after tax
Other comprehensive income items which
will be reclassified subsequently to profit
or loss
Financial rewards for energy-saving
technical retrofits 2550000 - 2550000 - - - - - -
Difference on translation of foreign
currency financial statements 2530234 1485630 4015864 1485630 - - 1485630 -
5080234 1485630 6565864 1485630 - - 1485630 -
CSG HOLDING CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(35) Special reserve
31 December
2019
Increase in
current year
Decrease in
current year
31 December
2020
Safety production costs 11102921 - (833919) 10269002
The subsidiary Yichang CSG PolysSilicon is a high risk chemical production enterprise. Therefore the
Company appropriated such reserve in accordance with relevant regulations.
(36) Surplus reserve
31 December
2019
Increase in
current year
Decrease in
current year
31 December
2020
Statutory surplus reserve 818398718 90697136 - 909095854
Discretionary surplus reserve 127852568 - - 127852568
946251286 90697136 - 1036948422
31 December
2018
Increase in
current year
Decrease in
current year
31 December
2019
Statutory surplus reserve 796452807 21945911 - 818398718
Discretionary surplus reserve 127852568 - - 127852568
924305375 21945911 - 946251286
In accordance with the Company Law of the People’s Republic of China and the Company’s Articles of
Association the Company should appropriate 10% of net profit for the year to the statutory surplus
reserve and the Company can cease appropriation when the statutory surplus reserve accumulated to
more than 50% of the registered capital. The statutory surplus reserve can be used to make up for the
loss or increase the paid-in capital after approval from the appropriate authorities. The Company
accrued statutory surplus reserve at the amount of RMB 90697136 based on 10% of the net profit in
2020 (2019: RMB 21945911 accrued at 10% of the net profit).
The Company appropriates for the discretionary surplus reserve after the shareholders’ meeting
approves the proposal from the Board of Directors. The discretionary surplus reserve can be used to
make up for the loss or increase the share capital after approval from the appropriate authorities. The
Company did not appropriate to discretionary surplus reserve during the year.
CSG HOLDING CO. LTD.
Notes to the financial statements
for the year ended 31 December 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(37) Undistributed profits
2020 2019
Undistributed profit at the beginning of year 4859600841 4486264723
Add: Net profits attributable to shareholders of parent
company 779325592 536430818
Less: Appropriation for statutory surplus reserve (90697136) (21945911)
Ordinary share dividends payable (a) (211962885) (141148789)
Undistributed profits at end of year 5336266412 4859600841
(a) Pursuant to the resolution of Board of Directors of the Company on 21 May 2020 the Company paid
cash dividends of RMB 0.7 (tax inclusive) for each 10 shares based on total shares of 3070692107
with the total cash dividends distributed of RMB 214948447 (tax inclusive).
(38) Revenue and cost of sales
2020 2019
Revenue from main operations 10586819348 10390235115
Revenue from other operations 84434097 81792984
10671253445 10472028099
2020 2019
Cost of sales from main operations 7441135985 7738447136
Cost of sales from other operations 3329746 4682478
7444465731 7743129614
(a) Revenue and cost of sales from main operations
Revenue and cost of sales from main operations analysed by industry and product are set out below:
2020 2019
Revenue Cost Revenue Cost
Glass industry 8648968925 5978411008 7907268375 5771311137
Electronic glass and display 1080294536 755486558 1041131329 736286553
Solar and other industries 918644331 768326863 1498836942 1287850977
Elimination (61088444) (61088444) (57001531) (57001531)
10586819348 7441135985 10390235115 7738447136
CSG HOLDING CO. LTD.
Notes to the financial statements
for the year ended 31 December 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(38) Revenue and cost of sales (Cont’d)
(b) Revenue and cost of sales from other operations
2020 2019
Revenue Cost Revenue Cost
Sales of raw materials and
Others 84434097 3329746 81792984 4682478
84434097 3329746 81792984 4682478
(39) Taxes and surtax
2020 2019
City maintenance and construction tax 35628490 31635208
Educational surcharge 29987714 26205282
Housing property tax 28957233 31118379
Land use rights 12958802 13478338
Stamp tax 5074506 4994475
Environmental tax 7731103 8176508
Others 1560674 205578
121898522 115813768
(40) Selling expenses
2020 2019
Freight expenses 12684512 166179716
Employee benefits 151981631 154777915
Entertainment fees 18142648 15906226
Business travel expenses 7092008 12222218
Vehicle use fees 7664729 8061636
Rental expenses 6846194 7050606
Depreciation expenses 908207 906236
Others 28599009 24164682
233918938 389269235
CSG HOLDING CO. LTD.
Notes to the financial statements
for the year ended 31 December 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(41) Administrative expenses
2020 2019
Employee benefits 345024244 335972452
Depreciation expenses 60876687 64780698
Amortisation of intangible assets 58303184 55705919
General office expenses 29724065 23368748
Labour union funds 14096131 14435214
Entertainment fees 13021278 12872934
Business travel expenses 6555071 10031106
Utility fees 6571509 7528252
Canteen costs 7475271 7514315
Vehicle use fees 5515675 5630014
Consulting advisers 17515445 32345028
Shutdown loss 43071647 -
Others 59226354 32405970
666976561 602590650
(42) Research and development expenses
2020 2019
Research and development expenses 404842498 366871283
404842498 366871283
(43) Financial expenses
2020 2019
Interest on borrowings 282470740 328728246
Less: Capitalised interest (9162681) (9136496)
Interest expenses 273308059 319591750
Less: Interest income (53404661) (36942509)
Exchange losses (1688559) (2869494)
Others 5797081 10637656
224011920 290417403
CSG HOLDING CO. LTD.
Notes to the financial statements
for the year ended 31 December 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(44) Expenses by nature
The cost of sales selling and distribution expenses general and administrative expenses Research
and development expenses in the income statement are listed as follows by nature:
2020 2019
Changes in inventories of finished goods and
work in progress 45430285 (219047868)
Consumed raw materials and low value
consumables etc. 4061391717 4432549735
Fuel fee 1281713451 1389885293
Employee benefits 1424069878 1413140209
Depreciation and amortisation expenses 923292967 972774759
Utility fees 541569991 627935953
Freight expenses 154114713 174194886
General office expenses 45667757 45273414
Canteen costs 35705412 35334186
Business travel expenses 16682603 26251183
Entertainment fees 34020807 31635784
Vehicle use fee 14285144 15028995
Rental expenses 21279601 11370775
Others 150979402 145533478
8750203728 9101860782
(45) Gains arising from changes in fair value
2020 2019
Investment real estate measured at fair value 179911200 -
179911200 -
(46) Investment income
2020 2019
Income from structural deposits 2654504 -
2654504 -
CSG HOLDING CO. LTD.
Notes to the financial statements
for the year ended 31 December 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(47) Other income
(48) Credit impairment losses
2020 2019
Losses on bad debts of accounts receivable 5120629 8893212
Losses on bad debts of other receivables 601990 11220821
5722619 20114033
(49) Asset impairment losses
2020 2019
Impairment loss of fixed assets 428132973 280503012
Decline in the value of inventories 9712924 4834569
Impairment loss in construction in progress 218940134 116364704
Impairment loss in goodwill 81722063 61622400
738508094 463324685
(50) Asset disposal income
2020
2019
Gains on disposal of non-current assets (1158984) (909968)
(1158984) (909968)
2020 2019
Government subsidy amortization 35444848 121319478
Industry support funds 4063000 20938172
Research grants 9531120 5641262
Government incentive funds 29508022 19639753
Others 21013410 16592755
99560400 184131420
CSG HOLDING CO. LTD.
Notes to the financial statements
for the year ended 31 December 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(51) Non-operating income
2020 2019
Amount of non-
recurring gains
and losses
included in 2020
Government grants (a) 100000 - 100000
Compensation income 2985667 4557620 2985667
Amounts unable to pay 4572559 1384296 4572559
Others 6711613 1885918 6711613
14369839 7827834 14369839
(52) Non-operating expenses
2020 2019
Amount of non-
recurring gains and
losses included in
2020
Compensation 1507494 4126950 1507494
Donation 17321288 1659000 17321288
Others 1725613 3654137 1725613
20554395 9440087 20554395
CSG HOLDING CO. LTD.
Notes to the financial statements
for the year ended 31 December 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(53) Income tax expenses
2020 2019
Current income tax 238941249 159871302
Deferred income tax 54796896 (58184252)
293738145 101687050
The reconciliation from income tax calculated based on the applicable tax rates and total profit
presented in the consolidated income statement to the income tax expenses is listed below:
2020 2019
Total profit 1105691126 662106627
Income tax expenses calculated at applicable tax rates by
company 181218682 94958274
Effect of changes in tax rates - 2130542
Costs expenses and losses not deductible for tax purposes 2517415 2091925
Deductible losses of unrecognised deferred income tax
assets in the previous period (2772095) (2495678)
Deductible losses for which no deferred tax asset was
recognised in current period
161018094 44552208
Effect of tax incentives (42340548) (37141013)
Reconciliation of income tax for prior years in annual filing (5903403) (2409208)
Income tax expenses 293738145 101687050
CSG HOLDING CO. LTD.
Notes to the financial statements
for the year ended 31 December 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(54) Earnings per share
The basic earnings per share is calculated by dividing the net profit attributable to ordinary
shareholders of the company by the weighted average number of ordinary shares outstanding.The numerator of diluted earnings per share is determined based on the net profit attributable to the
common shareholders of the company's common stock. The following factors are adjusted to
determine: (1) interest on dilutive potential ordinary shares that have been recognized as expenses in
the current period; (2) dilutive potential ordinary The income or expenses that will be generated when
the shares are converted; (3) The above-mentioned adjustments related to income tax effects.The denominator of the diluted earnings per share equals the sum of: (1) the weighted average
number of ordinary shares of the parent company in the underlying earnings per share; (2) ordinary
shares that are increased assuming the dilution of potential ordinary shares into common shares The
weighted average.When calculating the weighted average of the number of ordinary shares increased from diluted
common stocks to ordinary shares the diluted potential ordinary shares issued during the previous
period are assumed to be converted at the beginning of the current period; diluted potential ordinary
shares of the current period are issuedassuming a conversion on the issue date.The basic calculation of basic earnings per share and diluted earnings per share are as follows:
(a) Basic earnings per share:
2020 2019
Consolidated net profit attributable to ordinary
shareholders of parent company
779325592 536430818
Weighted average number of outstanding ordinary 3070692107 3070692107
Basic earnings per share 0.25 0.17
(b) Diluted earnings per share:
Diluted earnings per share are calculated by dividing consolidated net profit attributable to ordinary
shareholders of the parent company adjusted based on the dilutive potential ordinary shares by the
adjusted weighted average number of outstanding ordinary shares of the Company. For the year
ended 31 December 2020 the Company had diluted earnings per shares of RMB 0.25 (2019: RMB
0.17 per share).
CSG HOLDING CO. LTD.
Notes to the financial statements
for the year ended 31 December 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(55) Notes to the cash flow statement
(a) Cash generated by other operating activities
2020 2019
Government grants 83690924 96231197
Interest income 53404661 36942509
Others 40668625 25288419
177764210 158462125
(b) Cash paid relating to other operating activities
2020 2019
Freight expenses 50765589 187867670
Canteen costs 38460290 35334186
General office expenses 39088171 37580121
Business travel expenses 17586616 27054902
Entertainment fees 31779755 28986055
Vehicle use fee 12831298 15028995
Maintenance fee 22961067 27637953
Rental expenses 22006257 11370775
Insurance 13934943 12270654
Fees 5797081 10637656
Consulting advisers 24030410 20605172
Others 143813446 188822406
423054923 603196545
(c) Cash generated by other investing activities
2020 2019
Entrusted Loan 300000000 -
Income from trial production of construction in progress 124382895 33207228
Deposit 10794429 3442232
435177324 36649460
CSG HOLDING CO. LTD.
Notes to the financial statements
for the year ended 31 December 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(55) Notes to the cash flow statement(Cont’d)
(d) Cash paid relating to other investing activities
2020 2019
Trial production expenditure in construction 118741948 55177375
118741948 55177375
(e) Cash generated by other financing activities
2020 2019
Income from finance lease - 200000000
Received deposit and security deposit 153698226 -
153698226 200000000
(f) Cash payments relating to other financing activities
2020 2019
Repay financing leases 478319392 1024419924
Deposit - 150493884
Payment of loan security and fee for bills 3460879 11591508
Equity incentive fund 122445171 144286387
604225442 1330791703
CSG HOLDING CO. LTD.
Notes to the financial statements
for the year ended 31 December 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(56) Supplementary information to the cash flow statement
(a) Reconciliation from net profit to cash flows from operating activities
2020 2019
Net profit 811952981 560419577
Add: Provision for asset impairment 738508094 463324685
Provision for credit impairment 5722619 20114033
Depreciation of fixed assets 863408582 915355376
Amortisation of intangible assets 58303184 55705919
Net movements of safety production costs - 5034321
Amortisation of long-term prepaid expenses 1581201 1713464
Employee compensation based on share - (24195870)
Losses on disposal of fixed assets and intangible
assets 1158984 909968
Financial expenses 273308059 319591750
Gains arising from changes in fair value (179911200) -
Investment income (2654504) -
Decrease/(increase) in deferred tax assets 10813173 (66263069)
Increase/(decrease) in deferred tax liabilities 43983723 8078817
(Increase)/decrease in inventories (8426451) (216530491)
Increase in operating receivables (84621855) 106031510
Increase in operating payables 197493046 229746330
Net cash flows from operating activities 2730619636 2379036320
(b) Net increase/(decrease) in cash
2020 2019
Cash and cash equivalents at end of year 2124028196 1831835030
Less: Cash and cash equivalents at beginning of year (1831835030) (2225126913)
Net increase in cash and cash equivalents 292193166 (393291883)
CSG HOLDING CO. LTD.
Notes to the financial statements
for the year ended 31 December 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(56) Supplementary information to the cash flow statement(Cont’d)
(c) Cash and cash equivalents
31 December 2020 31 December 2019
Cash
- Cash on hand 2725 4268
- Bank deposits that can be readily drawn on demand 1463954484 1781830762
- Other cash balances that can be readily drawn on
demand 660070987 50000000
Cash at end of year 2124028196 1831835030
(57) Assets with restricted ownership or use rights
2020 2019 Reason
Monetary assets 1760707 155145388 Restricted deposit flow
Propertyplant and equipment 238490675
1373926910
Limited finance lease and
Restricted mortage loan
240251382 1529072298
CSG HOLDING CO. LTD.
Notes to the financial statements
for the year ended 31 December 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(58) Monetary items denominated in foreign currencies
31 December 2020
Balances
denominated in
foreign currencies
Exchange
rates
Balances
denominated in
RMB
Cash at bank and on hand—
- HKD 7126662 0.8416 5997799
- USD 2544013 6.5249 16599430
- JPY 16088877 0.0632 1016817
- AUD 798 5.0163 4003
- EUR 11070 8.0250 88837
23706886
Accounts receivable—
- HKD 1655084 0.8416 1392919
- USD 12924847 6.5249 84333333
- EUR 834785 8.0250 6699153
92425405
Short-term borrowings—
- HKD 75000000 0.8416 63120000
63120000
Accounts payable -—
- HKD 4596965 0.8416 3868806
- USD 7300070 6.5249 47632226
- EUR 527250 8.0250 4231184
- JPY 3363149 0.0632 212551
55944767
Contract liabilities—
- HKD 8232713 0.8416 6928651
- USD 3554074 6.5249 23189977
- EUR 125 8.0250 1003
30119631
CSG HOLDING CO. LTD.
Notes to the financial statements
for the year ended 31 December 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 The changes of consolidation scope
On 7 January 2020 the Group set up a Overseas subsidiary CSG (Thailand) Co. Ltd.. and the Group
has not invested . The Group owns 100% of its equity.
On 5 February 2020 the Group set up a subsidiary Anhui CSG New Energy Material Technology Co.
Ltd.(Anhui Energy Company) and the Group has invested RMB 20000000 . The Group owns 100%
of its equity.
On 8 February 2020 the Group set up a subsidiary Anhui CSG Quartz Material Co. Ltd.(Anhui
Quartz Company) and the Group has invested RMB 3000000 . The Group owns 100% of its equity.
On 10 February 2020 the Group set up a subsidiary Shenzhen CSG Medical Technology Co. Ltd.
(Shenzhen CSG Medical Company)and the Group has invested RMB 20000000 . The Group owns
100% of its equity.
On 31 August 2020 the Group set up a subsidiary CSG (Suzhou) Corporate Headquarters
Management Co. Ltd. and the Group has invested RMB 20000000 . The Group owns 100% of its
equity.
CSG HOLDING CO. LTD.
Notes to the financial statements
for the year ended 31 December 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
6 Equity in other entities
(1) Interest in subsidiaries
(a) Structure of the enterprise group
As at 31 December 2020 information of the Company’s major subsidiaries is set out below:
Major
business
location
Place of
registration Scope of business
Shareholding
(%)
Direct Indirect
Chengdu CSG
Chengdu
PRC
Chengdu
PRC
Development production and sales of
special glass 75% 25%
Sichuan CSG Energy Conservation
Chengdu
PRC
Chengdu
PRC
Development production and sales of
special glass and processing of glass 75% 25%
Tianjin Energy Conservation
Tianjin
PRC
Tianjin
PRC
Development production and sales of
special glass 75% 25%
Dongguan CSG Engineering
Dongguan
PRC
Dongguan
PRC Intensive processing of glass 75% 25%
Dongguan CSG Solar
Dongguan
PRC
Dongguan
PRC Production and sales of solar glass 75% 25%
Dongguan CSG PV-tech
Dongguan
PRC
Dongguan
PRC
Production and sales of hi-tech green battery
and components 100% -
Yichang CSG PolysSilicon
Yichang
PRC
Yichang
PRC
Production and sales of high-purity silicon
materials 75% 25%
Wujiang CSG Engineering
Wujiang
PRC
Wujiang
PRC Intensive processing of glass 75% 25%
Hebei CSG
Yongqing
PRC
Yongqing
PRC Production and sales of special glass 75% 25%
Wujiang CSG
Wujiang
PRC
Wujiang
PRC Production and sales of special glass 100% -
China Southern Glass (Hong Kong) Limited
Hong Kong
PRC
Hong Kong
PRC Investment holding 100% -
Hebei Shichuang
Yongqing
PRC
Yongqing
PRC
Production and sales of ultra-thin electronic
glass - 100%
Xianning CSG
Xianning
PRC
Xianning
PRC Production and sales of special glass 75% 25%
Xianning CSG Energy-Saving
Xianning
PRC
Xianning
PRC Intensive processing of glass 75% 25%
Qingyuan CSG Energy-Saving
Qingyuan
PRC
Qingyuan
PRC
Production and sales of ultra-thin electronic
glass 100% -
Shenzhen CSG Financial Leasing Co. Ltd.Shenzhen
PRC
Shenzhen
PRC Finance leasing etc. 75% 25%
Jiangyou CSG Mining Development Co. Ltd.Jiangyou
PRC
Jiangyou
PRC
Production and sales of silica and its by-
products 100% -
Shenzhen CSG PV Energy Co. Ltd.Shenzhen
PRC
Shenzhen
PRC
Investment management of photovoltaic
plant 100% -
Qingyuan CSG New Energy Co. Ltd.Qingyuan
PRC
Qingyuan
PRC
Clean energy development photovoltaic
power generation - 100%
Suzhou CSG PV-tech Co. Ltd.Wujiang
PRC
Wujiang
PRC
Clean energy development photovoltaic
power generation - 100%
Wujiang CSG New Energy Co. Ltd.Wujiang
PRC
Wujiang
PRC
Clean energy development photovoltaic
power generation - 100%
Yichang CSG New Energy Co. Ltd
Yichang
PRC
Yichang
PRC
Clean energy development photovoltaic
power generation - 100%
Shenzhen CSG Display:
Shenzhen
PRC
Shenzhen
PRC
Production and sales of display component
products 60.80% -
Xianning CSG Photoelectric
Xianning
PRC
Xianning
PRC Photoelectric glass and high aluminium glass - 100%
Zhaoqing Energy Saving Company
Zhaoqing
PRC
Zhaoping
PRC
Production and sales of various special
glasses 100% -
Zhaoqing Automobile Company
Zhaoqing
PRC
Zhaoqing
PRC
Production and sales of various special
glasses 100%
-
Anhui Energy Company
Fengyang
PRC
Fengyang
PRC Production and sales of solar glass products 100% -
Anhui Quartz Company
Fengyang
PRC
Fengyang
PRC Production and sales of solar glass products 100% -
CSG HOLDING CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
6 Interest in subsidiaries (Cont'd)
(1) Interest in subsidiaries (Cont'd)
(b) Subsidiaries with significant minority interests
Subsidiaries
Shareholding of
minority
shareholders
Profit or loss attributable to
minority shareholders for the
year ended 31 December
2020
Dividends distributed to
minority shareholders for the
year ended 31 December
2020
Minority interests
as at 31
December 2020
Shenzhen CSG Display 39.2% 31669296 - 372634677
(b) Main financial information of important non-wholly-owned subsidiaries
31 December 2020
Current
assets
Non-current
assets
Total assets Current
liabilities
Non-current
liabilities
Total liabilities
Shenzhen CSG
Display 304147421 1405344962 1709492383 630254366 81201074 711455440
2020
Revenue Net profit
Total comprehensive
income
Cash flows from
operating activities
Shenzhen CSG
Display 621866879 87177194 87177194 170160539
(2) Equity in associates
Name
Time of
registration
Registered
capital(Million)
Shareholding
(%)
Relationship with
the Group
Yichang Nanxing
Automotive
Electronics Co. Ltd.
13 October 2020 90 30.4% Associate
Yichang Rongsheng
New Material Co. Ltd.
19 October 2020 5 39% Associate
As of December 31 2020 the Group has not actually invested capital to the above associates.
CSG HOLDING CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
7 Segment information
-
The Group's business activities are classifcated by product and service as follows:
- Glass segment engaged in production and sales of float glass and engineering glass and the silica for the production thereof etc.- Solar energy segment engaged in manufacturing and sales of polycrystalline silicon and solar battery and applications etc.- Solar and other segment divisions responsible for the production and sales of polysilicon and solar cell module products photovoltaic energy
development and other products etc.The reportable segments of the Group are the business units that provide different products or service. Different businesses require different technologies and
marketing strategies. The Group therefore separately manages the production and operation of each reportable segment and Estimates their operating
results respectively in order to make decisions about resources to be allocated to these segments and to assess their performance.Inter-segment transfer prices are measured by reference to selling prices to third parties.The assets are allocated based on the operations of the segment and the physical location of the asset. The liabilities are allocated based on the operations of
the segment. Expenses indirectly attributable to each segment are allocated to the segments based on the proportion of each segment’s revenue.
CSG HOLDING CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
7 Segment information (Cont’d)
(a) Segment information as at and for the year ended 31 December 2020 is as follows:
Flat glass
Electronic glass
and displays
Solar and other
industries Unallocated Elimination Total
Revenue from external customers 8666093920 1083132521 916115834 5911170 - 10671253445
Inter-segment revenue 43677341 4229293 72667092 212060390 (332634116) -
Interest income 2140733 1471264 402262 49390402 - 53404661
Interest expenses (30646424) (12125558) (15354096) (215274796) 92815 (273308059)
Asset impairment losses (7746072) (1038135) (648001824) (81722063) - (738508094)
Credit impairment loss 31741 (229992) (3965108) (1559260) - (5722619)
Depreciation and amortisation expenses (601759885) (164905846) (150718578) (5908658) - (923292967)
Total profit/(loss) 1711049125 185625578 (475933924) (315049653) - 1105691126
Income tax (expenses)/income (222653492) (23877511) (49229706) 2022564 - (293738145)
Net profit/(loss) 1488395633 161748067 (525163630) (313027089) - 811952981
Total assets 8618862132 3784793003 3227533456 2251726307 - 17882914898
Total liabilities 2075265799 688502626 326834407 4176428180 - 7267031012
Increase in non-current assets 337211912 615441677 128344547 6281914 - 1087280050
CSG HOLDING CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
7 Segment information (Cont’d)
(b) Segment information as at and for the year ended 31 December 2019 is as follows:
Flat glass
Electronic glass and
displays
Solar and other
industries Unallocated Elimination Total
Revenue from external customers 7919060504 1041459512 1499613429 11894654 - 10472028099
Inter-segment revenue 60720111 2748558 42593191 70311058 (176372918) -
Interest income 2298783 1462028 366887 32814811 - 36942509
Interest expenses (106131665) (25138973) (34842227) (153625419) 146534 (319591750)
Asset impairment losses (599105) - (401103180) (61622400) - (463324685)
Credit impairment loss (14142940) (131168) (5891379) 51454 - (20114033)
Depreciation and amortisation expenses (613199303) (185107441) (168548956) (5919059) - (972774759)
Total profit/(loss) 1075860225 237606588 (396687471) (254672715) - 662106627
Income tax (expenses)/income (141068203) (30038136) 67801285 1618004 - (101687050)
Net profit/(loss) 934792022 207568452 (328886186) (253054711) - 560419577
Total assets 8101022462 3293542774 3999003979 2807666744 - 18201235959
Total liabilities 2190661316 757717011 597803728 4789198376 - 8335380431
Increase in non-current assets 190498106 143904520 189301563 3954944 - 527659133
CSG HOLDING CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
7 Segment information (Cont’d)
The Group’s revenue from external customers domestically and in foreign countries or geographical
areas and the total non-current assets other than financial assets and deferred tax assets located
domestically and in foreign countries or geographical areas are as follows:
Revenue from external customers 2020 2019
Mainland 9538506225 9123825213
Overseas 1132747220 1348202886
10671253445 10472028099
Total non-current assets 31 December 2020 31 December 2019
Mainland 12652550312 13249557840
Hong Kong PRC 12463605 12535219
12665013917 13262093059
No revenue from a single customer exceeded 10% or more of the Group’s revenue.
8 Related parties and related party transactions
(1) Information of the parent company
The Company regards no entity as the parent company.
(2) The subsidiaries
The general information and other related information of the subsidiaries are set out in Note 6(1).
(3) General information of the Group’s associate
The general information of the associates are set out in Note 6(2).
CSG HOLDING CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
8 Related parties and related party transactions (Cont’d)
(4) Other related parties information
Relationship with the Group
Shenzhen Jushenghua Co.Ltd. (“Jushenghua”) Persons acting in concert with the first majority
shareholder of the Group
Shenzhen Qianhai Ruinan Investment LLP Controlled by the former key management
personnel of the Croup
Xinjiang Qianhai United Property & Casualty
Insurance
Related parties of the company's largest
shareholder of taking concerted action
Suzhou Baoqi Logistics Co. Ltd. Related parties of the company's largest
shareholder of taking concerted action
Wuxi Baowan Department Store Co. Ltd. Nanjing
Yanziji Store
Related parties of the company's largest
shareholder of taking concerted action
Baoneng Department Store Retail Co. Ltd. Related parties of the company's largest
shareholder of taking concerted action
Guangdong Chubang Food Co. Ltd. Directors of the company serve as directors of its
parent company
(5) Related party transactions
(a) Purchase and sales of goods provision and receiving of labour
Related parties
Related
transaction
Transaction
pricing policy 2020 2019
Suzhou Baoqi Logistics
Co. Ltd. Receive service Market price 2117344 -
Wuxi Baowan
Department Store Co.
Ltd. Nanjing Yanziji
Store
Purchase of
goods Market price 2866100 -
Others
Purchase of
goods Market price 330568 -
5314012 -
CSG HOLDING CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
8 Related parties and related party transactions (Cont’d)
(5) Related party transactions(Cont’d)
Selling goods and providing services
Related parties
Related
transaction
content
Transaction
pricing policy 2020 2019
Shenzhen
Jushenghua Co. Ltd. Sales of goods Market price 12118000 -
Guangdong Chubang
Food Co. Ltd. Sales of goods Market price 1500000 -
Baoneng Department
Store Retail Co. Ltd. Sales of goods Market price 899940 -
Others Sales of goods Market price 4485120 -
19003060 -
Note: Other related parties will be listed together as they showed many companies and the amounts
are scattered
(b) Purchase of insurance
Related parties Related party transactions 2020 2019
Shenzhen Qianhai Ruinan
Investment LLP
Buy life insurance for
employees
5086401 3567910
Xinjiang Qianhai United Property
& Casualty Insurance
Buy car insurance for
employees
1099639 235095
6186040 3803005
(c) Leases
None
(d) Gains on equity transfer
None
(e) Acquisition of equity
None
(f) Advances paid on behalf of related parties
None
CSG HOLDING CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
8 Related parties and related party transactions (Cont’d)
(5) Related party transactions(Cont’d)
(g) Remuneration of key management
2020 2019
Remuneration 23628100 21940800
(6) Accounts receivable from related parties
(a) Receivables
Related parties 31 December 2020 31 December 2019
Carrying amount
Provision for
bad debts Carrying amount
Provision for
bad debts
Baoneng Department
Store Retail Co. Ltd.
192000 3840 - -
Others 31200 624 - -
223200 4464 - -
(b) payables
Related parties 2020 2019
Suzhou Baoqi Logistics Co. Ltd. 2617344 -
2617344 -
(7) Commitments in relation to related parties
The commitments in relation to related parties contracted for but not yet necessary to be recognised
on the balance sheet by the Group as at the balance sheet date are as follows:
Related parties
Related party
transactions
Restrictive terms
on borrowings 2020 2019
Shenzhen
Jushenghua Co.Ltd. (“Jushenghua”)
Facility of interest-
free loans provided
for the Company Nil 2000000000 2000000000
On 22 November 2016 the Company received a letter from its shareholder Jushenghua stating that
to support the Group’s steady operation and development Jushenghua as the shareholder of the
Company would like to offer interest-free borrowings with the total amount of RMB2 billion to the
Company or through related parties designated by it. For any borrowing drawn its repayment date is
negotiated by the Company and Jushenghua upon withdrawal. When a borrowing is due if an
extension is needed the Company can apply to the actual lender based on the Company’s operation;
where the actual lender agrees with the extension application the term of the borrowing is extended
accordingly. The company did not borrow loan from above company in 2020.
CSG HOLDING CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
9 Share Payment
1. Overall situation of share payment
The total number of various equity instruments
that have repurchased in the current period
36222898 shares
Total amount of various equity instruments
that the company exercises during the current
period
-
The total number of equity instruments granted
by the company in the current period
Restricted shares
-
Note: On December 11 2017 reviewed and approved by the Group's eighth session of the Board of
Directors the Group implemented the 2017 A Share Restricted Stock Incentive Plan. The incentive
targets for the restricted shares granted under this plan include company directors and senior
management personnel. A total of 454 core management teams company technology members and
main employees. The first grant date of this restricted stock was December 11 2017. The company
granted 97511654 restricted shares for the first time to 454 incentive targets. The initial grant price
was 4.28RMB per share. Reserved restricted stock ending balance 17046869 shares the grant price
has not been determined. The shares granted of the first time has been registered and listed.
By the 2nd temporary meeting of shareholders held on 6 August 2018the company decided to
repurchase and cancel the still-restricted shares which have already been granted to and held by 15
recipients no longer qualified for “incentive plan” due to either resignation or position adjustment
3319057 shares were repurchased and cancelled The company has finished above cancellations of
the restricted shares by September 10 2018.The Company held the 8th temporary meeting of Board member members on September 13 2018
which reviewed and approved September 13 2018 to be the shares granting date and 75 recipients to
be granted 9826580 restricted shares in total.The Company held the 8th temporary meeting of Board member members on December 12 2018
which reviewed and approved the releasing conditions on the first- time expiring trading restrictions of
the initial part of the incentive plan on restricted shares from ordinary A during 2017. A total of 431
recipients of the incentive plan were able to fullfil the conditions. The amount of 43353050 shares
could be released from restrictions.
On December 12 2018 the company held the 8th meeting of the 8th board of directors and themeeting of the 8th board of supervisors. The meetings approved the “Proposal concerning therepurchase and cancellation of some restricted shares from the ‘incentive plan’ of restrictedshares” and the meetings approved to repurchase and cancel a total of 436719 restricted shareswhich have already been granted to and held by 8 recipients who are unqualified for the “incentiveplan”. this was reviewed and approved by the third temporary meeting of shareholders on December
28 2018. As of June 18 2019The cancellations of above restricted shares have been finished.
CSG HOLDING CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
9 Share Payment (Cont’d)
(1) Overall situation of share payment(Cont’d)
On April 16 2019 the company held the 8th meeting of the 8th board of directors and the 8th meetingof the 8th board of supervisors. The meetings approved the “Proposal concerning the repurchaseand cancellation of some restricted shares from the ‘incentive plan’ of restricted shares” and the“Proposal concerning the repurchase and cancellation of restricted shares failing to meet the second-term unlocking condition”. The meetings approved to repurchase and cancel a total of 3473329
restricted shares which have already been granted to and held by 14 recipients who are unqualified for
the “incentive plan” and repurchase and cancel a total of 33734276 restricted shares failing to
meet the second-term unlocking condition from 483 “incentive” recipients. Independent directors
agreed with this and it was approved by the annual general meeting of shareholders on May 9 2019.
By June 18 2019 the cancellations procedure of above restricted shares have been accomplished.
On September 16 2019 the Company held the 8th temporary meeting of Board members and the 8thtemporary meeting of Supervisors. The meetings reviewed and approved the “Proposal concerningthe repurchase and cancellation of some restricted shares from the ‘incentive plan’ of restrictedshares”. The meetings approved to repurchase and cancel a total of 1281158 restricted shares
which have already been granted to and held by 18 recipients unqualified for the “incentive plan”
this was reviewed and approved by the 4th temporary meeting of shareholders on October 10 2019.The cancellations of above restricted shares have not been finished yet.On September 16 2019the Company held the 8th temporary meeting of Board member members and
the 8th temporary meeting of Supervisors which reviewed and approved the releasing conditions on
the first-time expiring trading restrictions of the initial part of the incentive plan on restricted
shares from ordinary A in 2017 . A total of 71 recipients of the incentive plan were able to fulfil
the conditions. The amount of 3909350 shares could be released from restrictionsexcept for the 3
reserved incentive recipients who have resigned and no longer meet the conditions for lifting sales
restrictions. The restricted shares was released and listed by company on September 25 2019.
After the company held the 2019 Annual General Meeting of Shareholders on May 21 2020 the
"Proposal on Repurchase and Cancellation of Certain Restricted Shares in the Restricted Stock
Incentive Plan" was reviewed and approved and 14 non-compliant shares were repurchased and
cancelled. All restricted stocks for which the original incentive object has been granted but not yet
lifted the restriction on sales total 909936 shares. On June 16 2020 the company has completed the
cancellation procedures of the aforementioned restricted stocks.
After the company held the 2019 Annual General Meeting of Shareholders on May 21 2020 the
"Proposal on Repurchase and Cancellation of Restricted Stocks That Did Not Meet the Unlocking
Conditions of the Third Unlocking Period" was reviewed and approved and 451 shareholders were
reviewed and agreed to repurchase and cancel. The restricted stocks for which the incentive objects
did not meet the unlocking conditions of the third unlocking period totaled 35312962 shares. As of
June 16 2020 the company has completed the cancellation procedures of the aforementioned
restricted stocks.This incentive plan is valid for 48 months from the date of grant of the restricted stock to the date of
unlocking of all restricted stocks or the completion of repurchase and cancellation. During the
unlocking/exercise period if the unlocking/exercise condition specified in the incentive plan is reached
the restricted stock granted is unlocked in three phases after 12 months from the grant date.
CSG HOLDING CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
9 Share Payment (Cont’d)
(1) Overall situation of share payment(Cont’d)
The unlock period is shown in the following table:
Unlock Schedule Unlock Time Unlock Ratio
First unlock from the date of the first transaction 12 months
after the award date to the date of the last
transaction within 24 months from the grant date.
40%
Second unlock from the date of the first trading day 24 months
after the grant date to the date of the last trading
day within 36 months from the grant date
30%
Third unlock from the date of the first trading day 36 months
after the grant date to the day of the last trading
day within 48 months from the grant date
30%
2. Equity-settled share payment
Method for Determining the Fair Value of
Equity Instruments on the Grant Date
Black-Scholes Model
Determination of the best estimate of the
number of vesting equity instruments
Based on the latest information on the
change in the number of exercisable rights
and the completion of performance
indicators the number of equity instruments
that are expected to be exercised is revised.Reasons for significant differences between
current estimates and previous estimates
Not applicable
Cumulative amount of equity-settled share-
based payment in capital reserves 128276983
Total equity confirmed by equity-settled
share-based payment in this period -
According to the relevant provisions of Accounting Standards for Business Enterprises No. 11 - Share
Payment and Enterprise Accounting Standard No. 22 - Recognition and Measurement of Financial
Instruments the Group uses the Black-Scholes model (BS model) as a pricing model deducting
incentive objects. The fair value of the restricted stock will be used after the lock-in costs that are
required to obtain the rational expected return from the sales restriction period are lifted in the future.The Group will on each balance sheet date of the lock-in period revise the number of restricted
stocks that are expected to be unlockable based on the newly obtained changes in the number of
unlockable persons and performance indicators and follow the fair value of the restricted stock grant
date. The services obtained during the current period are included in the relevant costs or expenses
and capital surplus.The Group actually granted restricted stocks of 97511654 shares in 2017 and the total fair value of
the equity instruments granted to the incentive target for the first day of grant was RMB 289519900
the total fair value as the total cost of the company's equity incentive plan will be confirmed in stages
according to the unlocking/exercise ratio during the implementation of the equity incentive plan and
will be included in the "management fees and Construction in progress and capital surplus-other
capital surplus " of each period accordingly.
CSG HOLDING CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
9 Share Payment (Cont’d)
(2) Equity-settled share payment(Cont’d)
By the 2nd temporary meeting of shareholders held on 6th August 2018the company decided to
repurchase and cancel the still-restricted shares which have already been granted to and held by 15
recipients no longer qualified for “incentive plan” due to either resignation or position adjustment
3319057 shares were repurchased and cancelled The company has finished above cancellations of
the restricted shares by September 10 2018.The Company held the 8th temporary meeting of Board member members on September 13 2018
which reviewed and approved September 13 2018 to be the shares granting date and 75 recipients to
be granted 9826580 restricted shares in total.The Company held the 8th temporary meeting of Board member members on December 12 2018
which reviewed and approved the releasing conditions on the first- time expiring trading restrictions of
the initial part of the incentive plan on restricted shares from ordinary A during 2017. A total of 431
recipients of the incentive plan were able to fullfil the conditions. The amount of 43353050 shares
could be released from restrictions. The restricted shares was released and listed by company on
December 21 2018.
On December 12 2018 the company held the 8th meeting of the 8th board of directors and the 8thmeeting of the 8th board of supervisors. The meetings approved the “Proposal concerning therepurchase and cancellation of some restricted shares from the ‘incentive plan’ of restrictedshares” and the meetings approved to repurchase and cancel a total of 436719 restricted shareswhich have already been granted to and held by 8 recipients who are unqualified for the “incentiveplan”. this was reviewed and approved by the third temporary meeting of shareholders on December
28 2018. As of June 18 2019The cancellations of above restricted shares have been finished.
In addition according to the Group’s performance in 2018 the unlocking conditions for the first post
lock-up period for the restricted shares incentive plan for 2017 and for the second post lock-up period
for the restricted shares incentive plan for 2018 were not met. Therefore by year end expenses for
the second post lock-up period for the ordinary A restricted shares was reduced by RMB 41856285.
On April 16 2019 the company held the 8th meeting of the 8th board of directors and the 8th meetingof the 8th board of supervisors. The meetings approved the “Proposal concerning the repurchaseand cancellation of some restricted shares from the ‘incentive plan’ of restricted shares” and the“Proposal concerning the repurchase and cancellation of restricted shares failing to meet the second-term unlocking condition”. The meetings approved to repurchase and cancel a total of 3473329
restricted shares which have already been granted to and held by 14 recipients who are unqualified for
the “incentive plan” and repurchase and cancel a total of 33734276 restricted shares failing to
meet the second-term unlocking condition from 483 “incentive” recipients. Independent directors
agreed with this and it was approved by the annual general meeting of shareholders on May 9 2019.
By June 18 2019 the cancellations procedure of above restricted shares have been accomplished.
On September 16 2019 the Company held the 8th temporary meeting of Board members and the 8thtemporary meeting of Supervisors. The meetings reviewed and approved the “Proposal concerningthe repurchase and cancellation of some restricted shares from the ‘incentive plan’ of restrictedshares”. The meetings approved to repurchase and cancel a total of 1281158 restricted shares
which have already been granted to and held by 18 recipients unqualified for the “incentive plan”
this was reviewed and approved by the 4th temporary meeting of shareholders on October 10 2019.The cancellations of above restricted shares have not been finished yet.
CSG HOLDING CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
9 Share Payment (Cont’d)
(2) Equity-settled share payment(Cont’d)
On September 16 2019the Company held the 8th temporary meeting of Board member members and
the 8th temporary meeting of Supervisors which reviewed and approved the releasing conditions on
the first-time expiring trading restrictions of the initial part of the incentive plan on restricted
shares from ordinary A in 2017 . A total of 71 recipients of the incentive plan were able to fulfil
the conditions. The amount of 3909350 shares could be released from restrictionsexcept for the 3
reserved incentive recipients who have resigned and no longer meet the conditions for lifting sales
restrictions. The restricted shares was released and listed by company on September 25 2019.
After the company held the 2019 Annual General Meeting of Shareholders on May 21 2020 the
"Proposal on Repurchase and Cancellation of Certain Restricted Shares in the Restricted Stock
Incentive Plan" was reviewed and approved and 14 non-compliant shares were repurchased and
cancelled. All restricted stocks for which the original incentive object has been granted but not yet
lifted the restriction on sales total 909936 shares. On June 16 2020 the company has completed the
cancellation procedures of the aforementioned restricted stocks.
After the company held the 2019 Annual General Meeting of Shareholders on May 21 2020 the
"Proposal on Repurchase and Cancellation of Restricted Stocks That Did Not Meet the Unlocking
Conditions of the Third Unlocking Period" was reviewed and approved and 451 shareholders were
reviewed and agreed to repurchase and cancel. The restricted stocks for which the incentive objects
did not meet the unlocking conditions of the third unlocking period totaled 35312962 shares. As of
June 16 2020 the company has completed the cancellation procedures of the aforementioned
restricted stocks.
10 Contingencies
Nil.
11 Commitments
(1) Capital expenditure commitments
Capital expenditures contracted for by the Group at the balance sheet date but are not yet necessary
to be recognized on the balance sheet are as follows:
31 December 2020 31 December 2019
Buildings machinery and equipment 552259223 491835351
CSG HOLDING CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
11 Commitments(Cont’d)
(2) Operating lease commitments
The future minimum lease payments due under the signed irrevocable operating leases contracts are
summarized as follows:
31 December 2020 31 December 2019
Within 1 year 7813728 2457100
1 to 2 years 541288 1412642
2 to 3 years - 652804
Over 3 years - 60000
8355016 4582546
12 Events after the balance sheet date
(a) Statement of profit distribution after balance sheet date
Amount
Proposed distribution of cash dividends 307069211
According to the resolution of the board of directors on April 13 2021 the board of directors proposed
that the company distribute a cash dividend of RMB 307069211 to all shareholders. This proposal is
approving by the general meeting of shareholders. The cash dividend proposed after the balance sheet
date has not been confirmed in this financial statement as a liability.
13 Other significant events
(1) 171 million special funds for the introduction of talents was follow-up progress.
(a) Matter description
As at December 10 2012 the People's Government of Yichang City and the Company signed the
Cooperation Agreement on Fine Glass and Ultrathin Electronic Glass Project ;The management
committee of Yichang High-tech Industrial Development Zone agreed to establish a RMB 171 million
talent fund as a special fund subsidy for the introduction of talents and the placement of talented
people in 2014. The company of Yichang CSG PolysSilicon Co.Ltd. is responsible for formulating the
housing resettlement subsidy program and supervising the use of this special fund.The funds were
subsidized by the government to the company but Yichang CSG PolysSilicon Co. Ltd. received this
amount and transferred it to Yichang Hongtai Real Estate Co. Ltd. in full amount without proper
approval from the company's board of directors and other relevant authorities. ( Yichang Hongtai Real
Estate Co.Ltd. is a company jointly indirect controlled by part of the former natural executives of the
company. The company has no equity relationship with the company ) .Yichang CSG PolysSilicon Co.Ltd. received the above fund and transferred it to Yichang Hongtai Real Estate Co. Ltd. in full and also
handled the accounting treatment according to the collecting and paying. In 2017 Prior period
accounting error from above matters was corrected by company.
CSG HOLDING CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
13 Other significant events(Cont’d)
(1) 171 million special funds for the introduction of talents was follow-up progress. (Cont’d)
(b) Subsequent progress
It is be heard that the Shenzhen People's Procuratorate has filed a public prosecution with the
Shenzhen Intermediate People's Court for Zeng Nan and others' crimes of breach of trust to damage
the interests of listed companies .This case has been filed by the court of Shenzhen Intermediate
People's Court and is currently being heard.(c) Receivable talent fund from Yichang Hongtai Real Estate Co. Ltd.
December 31 2020 December 31 2019
Book balance
Bad debt
preparation Book balance
Bad debt
preparation
Other
receivables
Yichang Hongtai Real
Estate Company 171000000 (3420000) 171000000 (3420000)
14 Financial instrument and risk
The Group's activities expose it to a variety of financial risks: market risk (primarily foreign exchange risk
and interest rate risk) credit risk and liquidity risk. The Group's overall risk management program
focuses on the unpredictability of financial market and seeks to reduce potential adverse effects on the
Group's financial performance.
(1) Market risk
(a) Foreign exchange risk
The Group’s major operational activities are carried out in Mainland China and a majority of the
transactions are denominated in RMB. Some export business however is denominated in foreign
currencies. In addition the Group is exposed to foreign exchange risk arising from the recognized
assets and liabilities and future transactions denominated in foreign currencies primarily with respect
to US dollars and Hong Kong dollar. The Group monitors the scale of foreign currency transactions
foreign currency assets and liabilities and adjust settlement currency of export business to furthest
reduce the currency risk.
CSG HOLDING CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
14 Financial instrument and risk (Cont’d)
(1) Market risk (Cont'd)
On 31 December 2020 book values in RMB equivalent of the Group’s assets and liabilities
denominated in foreign currencies are summarized below:
31 December 2020
USD HKD Others Total
Financial assets denominated
in foreign currency -
Cash at bank and on hand 16599430 5997799 1109657 23706886
Receivables 84333333 1392919 6699153 92425405
100932763 7390718 7808810 116132291
Financial liabilities denominated
in foreign currency -
Short-term borrowings - 63120000 - 63120000
Payables 47632226 3868806 4443735 55944767
47632226 66988806 4443735 119064767
31 December 2019
USD HKD Others Total
Financial assets denominated
in foreign currency -
Cash at bank and on hand 41907573 3907829 354589 46169991
Receivables 80789758 1487715 7527045 89804518
122697331 5395544 7881634 135974509
Financial liabilities denominated
in foreign currency -
Short-term borrowings 4938410 67185000 - 72123410
Payables 39609462 275 11628253 51237990
44547872 67185275 11628253 123361400
On 31 December 2020 if the currency had strengthened/weakened by 10% against the USD while all
other variables had been held constant the Group’s net profit for the year would have been
approximately RMB 4530546 lower/higher (31 December 2019: approximately RMB 6642704
lower/higher) for various financial assets and liabilities denominated in USD.
On 31 December 2020 if the currency had strengthened/weakened by 10% against the HKD while all
other variables had been held constant the Group’s net profit for the year would have been
approximately RMB 5065837 higher/lower (31 December 2019: approximately
RMB5252127higher/lower ) for various financial assets and liabilities denominated in HKD.
Other changes in exchange rate had no significant impact on the Group's operating activities.
CSG HOLDING CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
14 Financial instrument and risk (Cont’d)
(b) Foreign exchange risk
The Group's interest rate risk arises from long-term interest bearing debts including long-term
borrowings and bonds payable. Financial liabilities issued at floating rates expose the Group to cash
flow interest rate risk. Financial liabilities issued at fixed rates expose the Group to fair value interest
rate risk. The Group determines the relative proportions of its fixed rate and floating rate contracts
depending on the prevailing market conditions. As at 31 December 2020 the Group’s long-term
interest-bearing debts at and fixed rates and floating rates are illustrated below:
31 December 2020 31 December 2019
Debt at fixed rates 2105274331 951975000
Debt at floating rates 742000000 368250000
2847274331 1320225000
The Group continuously monitors the interest rate position of the Group. Increases in interest rates will
increase the cost of new borrowing and the interest expenses with respect to the Group’s outstanding
floating rate borrowings and therefore could have a material adverse effect on the Group’s financial
position. The Group makes adjustments timely with reference to the latest market conditions which
includes increasing/decreasing long-term fixed rate debts at the anticipation of increasing/decreasing
interest rate.
(2) Credit risk
Credit risk is managed on the grouping basis. Credit risk mainly arises from cash at bank notes
receivable accounts receivable other receivables.The Group expects that there is no significant credit risk associated with cash at bank since they are
mainly deposited at state-owned banks and other medium or large size listed banks. Management
does not expect that there will be any significant losses from non-performance by these counterparties.
Furthermore as the Group’s bank acceptance notes receivable are generally accepted by the state-
owned banks and other large and medium listed banks management believes the credit risk should
be limited.In addition the Group has policies to limit the credit exposure on accounts receivable other
receivables and trade acceptance notes receivable. The Group assesses the credit quality of and sets
credit limits on its customers by taking into account their financial position the availability of guarantee
from third parties their credit history and other factors such as current market conditions. The credit
history of the customers is regularly monitored by the Group. In respect of customers with a poor credit
history the Group will use written payment reminders or shorten or cancel credit periods to ensure
the overall credit risk of the Group is limited to a controllable extent.
CSG HOLDING CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
14 Financial instrument and risk (Cont’d)
(3) Liquidity risk
Cash flow forecasting is performed by each subsidiary of the Group and aggregated by the Group’s
finance department in its headquarters. The Group’s finance department at its headquarters monitors
rolling forecasts of the Group's short-term and long-term liquidity requirements to ensure it has
sufficient cash reserve while maintaining sufficient headroom on its undrawn committed borrowing
facilities from major financial institutions so that the Group does not breach borrowing limits or
covenants on any of its borrowing facilities to meet the short-term and long-term liquidity requirements.Management will implement the following measures to ensure the liquidation risk limited to a
controllable extent:
(a) The Group will have steady cash inflows from operating activities;
(b) The Group will pay the debts that mature and finance the construction projects through the
existing bank facilities;
(c) The Group will closely monitoring the payment of construction expenditure in terms of payment
time and amount.The financial liabilities of the Group at the balance sheet date are analyzed by their maturity date
below at their undiscounted contractual cash flows:
31 December 2020
Within 1 year 1 to 2 years 2 to 5years Over 5 years Total
Short-term borrowings 357872322 - - - 357872322
Notes payable 144851192 - - - 144851192
Accounts payable 1237833051 - - - 1237833051
Other payables 287332992 - - - 287332992
Other current liabilities 34586292 - - - 34586292
Non-current liabilities due
within one year 951180309 - - - 951180309
Long-term payables 32663037 731295181 154771873 - 918730091
Bonds payable 120000000 120000000 2027741935 - 2267741935
3166319195 851295181 2182513808 - 6200128184
CSG HOLDING CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
14 Financial instrument and risk (Cont’d)
(3) Liquidity risk (Cont’d)
31 December 2019
Within 1 year 1 to 2 years 2 to 5years Over 5 years Total
Short-term borrowings 2279068830 - - - 2279068830
Notes payable 232063968 - - - 232063968
Accounts payable 1100531779 - - - 1100531779
Other payables 351374775 - - 351374775
Other current liabilities 300000 - - - 300000
Current portion of non-
Current liabilities
1749763512 - - - 1749763512
Long-term payables - 87240529 - - 87240529
Long-term borrowings 81253313 1338406582 19752667 - 1439412562
5794356177 1425647111 19752667 - 7239755955
CSG HOLDING CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
15 Fair value estimates
Based on the lowest level input that is significant to the fair value measurement in its entirety the fair
value hierarchy has the following levels:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or
liability either directly or indirectly.Level 3: Unobservable inputs for the asset or liability.(a) Assets continuously measured at fair value
By December 31 2020 the Group’s using assets and liabilities measured at fair value are listed three
levels as followings:
31 December 2020
Level 1 Level 2 Level 3 Total
Measured at fair value
through other comprehensive
income
-Receivables Financing - 382527782 - 382527782
Investment property - 383084500 - 383084500
- 765612282 - 765612282
(b) Assets and liability that not measured but disclosed at fair value
The group’s financial assets and financial liabilities measured at amortized cost mainly include:
accounts receivable short-term borrowings accounts payable long term borrowings bonds payable
long-term payables ect.
Except for financial liabilities listed below book value of the other financial assets and liabilities not
measured at fair value is a reasonable approximation of their fair value.
31 December 2020 31 December 2019
Carrying
amount Fair value
Carrying
amount Fair value
Financial liabilities
Medium term notes 800000000 803364000 800000000 807757600
Corporate bonds 1994020348 1987041277 - -
2794020348 2790405277 800000000 807757600
The fair values of Corporate bonds and medium-term notes are the present value of the contractually
determined stream of future cash flows at the rate of interest applied at that time by the market to
instruments of comparable credit status and providing substantially the same cash flows on the same
terms thereinto medium term notes belong to Level 2.
CSG HOLDING CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
16 Capital management
The Group’s capital management policies aim to safeguard the Group’s ability to continue as a going
concern in order to provide returns for shareholders and benefits for other stakeholders and to
maintain an optimal capital structure to reduce the cost of capital.In order to maintain or adjust the capital structure the Group may adjust the amount of dividends paid
to shareholders refund capital to shareholders issue new shares or sell assets to reduce debts.The Group is not subject to external mandatory capital requirements and monitors capital on the basis
of gearing ratio.
As at 31 December 2020 and 31 December 2019 the Group's gearing ratio is as follows:
31 December 2020 31 December 2019
Total liabilities 7267031012 8335380431
Total assets 17882914898 18201235959
Gearing ratio 41% 46%
17 Notes to the Company’s financial statements
(1) Other receivables
31 December 2020 31 December 2019
Dividend receivable 249087257 -
Other receivables 3554821112 3179500967
3803908369 3179500967
1、 Dividend receivable
31 December 2020 31 December 2019
Dividends receivable from subsidiaries 249087257 -
249087257 -
2、 Other receivables
31 December 2020 31 December 2019
Receivables from related parties 3383284639 3008955525
Others 176588183 174025961
3559872822 3182981486
Less: Provision for bad debts (5051710) (3480519)
3554821112 3179500967
CSG HOLDING CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
17 Notes to the Company’s financial statements (Cont’d)
1、 Other receivables (Cont'd)
(a) The ageing of other receivables is analysed as follows:
31 December 2020 31 December 2019
Within 1 year 3384862561 3010311816
Over 1year 175010261 172669670
3559872822 3182981486
(b) Other receivables are analysed by category as follows:
31 December 2020 31 December 2019
Carrying amount
Provision for bad
debts Carrying amount
Provision for bad
debts
Amount
% of total
balance
Provision
for bad debts % Amount
% of total
balance
Provision for
bad debts %
Provision for bad debts by groupings
- Group 1 175037217 5% (3500744) 2% 174025961 5% (3480519) 2%
- Group 2 3383284639 95% - - 3008955525 95% - -
Provided for bad bebts individually 1550966 - (1550966) 100% - - - -
3559872822 100% (5051710) - 3182981486 100% (3480519) -
(c) For other receivables provided for bad debts by portfolio the expected credit impairment loss for the
portfolio is as follows:
31 December 2020 31 December 2019
Carrying amount Provision for bad debts Carrying amount Provision for bad debts
Amount Amount % Amount Amount %
Group 1 175037217 (3500744) 2% 174025961 (3480519) 2%
Group 2 3383284639 - - 3008955525 - -
3558321856 (3500744) - 3182981486 (3480519) -
CSG HOLDING CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
17 Notes to the Company’s financial statements (Cont’d)
1、 Other receivables (Cont'd)
(d) Provision for bad debts
(e) As at 31 December 2020 the Group’s top five entities with the largest other receivables balances are
analysed as below:
Relationship with
the Group Amount Ageing % of total balance
Qingyuan Energy Saving
Company Subsidiary 448107500 Within 1 year 13%
Dongguan Solar Energy
Company Subsidiary 422094604 Within 1 year 12%
Zhaoqing Energy Saving
Company Subsidiary 402155013
Within 1 year
11%
Wujiang CSG Subsidiary 366879876 Within 1 year 10%
Yichang Display Company Subsidiary 362874592 Within 1 year 10%
2002111585 56%
(2) Long-term equity investments
31 December 2020 31 December 2019
Subsidiaries (a) 5859507870 5094465574
Less: Impairment provision for investments in
subsidiaries (a) (15000000) (15000000)
5844507870 5079465574
bad debts Stage 1 Stage 2 Stage 3 31 December 2020
Expected credit
losses in the
following 12
months (grouping)
Lifetime expected
credit losses
(credit unimpaired)
Lifetime expected
credit losses
(creditimpaired)）
Total
1 January 2020 3480519 - - 3480519
Amounts in current year - - - -
——Transferred stage 2 - - - -
——Transferred stage 3 - - - -
—— Reversed stage 2 - - - -
—— Reversed stage 1 - - - -
Increased in current year 150698 - 1550966 1701664
Reversed in current year (130473) - - (130473)
Disposal in current year - - - -
Write-off in current year - - - -
Other movements - - - -
31 December 2020 3500744 - 1550966 5051710
3500744 - 1550966 5051710
CSG HOLDING CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
17 Notes to the Company’s financial statements (Cont’d)
(2) Long-term equity investments (Cont’d)
(a) Subsidiaries
Movement in current year
Additional
investment
31 December
2019
Decrease in
investment 31 December 2020
Provision for
impairment loss
Cash dividends
declared in current
year
Chengdu CSG 151397763 - - 151397763 - -
Sichuan Energy Conservation Company 119256949 - - 119256949 - 53482298
Tianjin Energy Conservation Company 247833327 - - 247833327 - -
Dongguan Engineering Company 198276242 - - 198276242 - -
Dongguan Solar Energy Company 355120247 - - 355120247 - 82942502
Yichang Silicon Material Company 640856170 - - 640856170 - -
Wujiang Engineering Company 254401190 - - 254401190 - 95738229
Hebei CSG 266189705 - - 266189705 - -
CSG (Hong Kong) Co. Ltd. 87767304 - - 87767304 - 281000000
Wujiang CSG 567645430 - - 567645430 - 433440276
Hebei Windows Company (i) 246370595 - (246370595) - - 111288209
Jiangyou Sands Company 102415096 - - 102415096 - -
Xianning Float Company 181116277 - - 181116277 - 37988203
Xianning Energy Saving Company 165452035 - - 165452035 - -
Qingyuan Energy Saving Company 303273105 582000000 - 885273105 - -
Shenzhen CSG Financial Leasing Co. Ltd. 133500000 - - 133500000 - -
Shenzhen CSG Photovoltaic Energy Co. Ltd. 100335176 - - 100335176 - -
Shenzhen Display Company 550765474 - - 550765474 - -
Xianning Optoelectronics Company (i) 139755437 - (139755437) - - 12644275
Zhaoqing Energy Saving Company 12801000 116900000 - 129701000 - -
Zhaoqing CSG Automotive Glass Co. Ltd. 12601000 30600000 - 43201000 - -
Dongguan CSG PV-tech 3443855 378668328 - 382112183 - -
Anhui Energy Company - 20000000 - 20000000 - -
Anhui Quartz Company - 3000000 - 3000000 - -
Shenzhen CSG Medical Company - 20000000 - 20000000 - -
Others (ii) 253892197 - - 253892197 (15000000) -
5094465574 1151168328 (386126032) 5859507870 (15000000) 1108523992
CSG HOLDING CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
17 Notes to the Company’s financial statements (Cont’d)
(2) Long-term equity investments (Cont’d)
(a) Subsidiaries (Cont'd)
(i) During the year the company traded its subsidiary Hebei Window Company and Xianning
Optoelectronics Company to its wholly-owned subsidiary Qingyuan Energy Conservation
Company and Hebei Window Company and Xianning Optoelectronics Company were changed
to Sun Company.(ii) Subsidiaries for which impairment provision has been made are those that have basically
ceased operations in previous years. The company has made provision for impairment of long-
term equity investments in these companies in previous years based on recoverable amounts.
(3) Long-term receivables
31 December 2020 31 December 2019
medium term notes and long-term borrowings
allocated to subsidiaries - 1200000000
Less: Provisions for impairment - -
- 1200000000
31 December
2019
Movements in
current year
31 December
2020
Provision for
impairment
loss
Reversals of
provision for
impairment loss
in current year
Chengdu CSG 50000000 (50000000) - -
Sichuan CSG Energy Conservation 20000000 (20000000) - -
Dongguan CSG PV-tech 50000000 (50000000) - -
Yichang CSG Polysilicon 350000000 (350000000) - -
Dongguan CSG Engineering 75000000 (75000000) - -
Wujiang CSG 210000000 (210000000) - -
Dongguan CSG Solar 120000000 (120000000) - -
Wujiang CSG Engineering 50000000 (50000000) - -
Qingyuan CSG Energy-Saving 50000000 (50000000) - -
Xianning CSG Energy-Saving 80000000 (80000000) - -
Xianning CSG 75000000 (75000000) - -
Hebei CSG 50000000 (50000000) - -
Hebei shichuang 20000000 (20000000) - -
1200000000 (1200000000) - -
CSG HOLDING CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
17 Notes to the Company’s financial statements (Cont’d)
(4) Other payables
31 December 2020 31 December 2019
Interest payable 131513019 41186139
Dividend payable - 2985563
Other payables 870622683 1598984750
1002135702 1643156452
1、 Interest payable
31 December 2020 31 December 2019
Interest payable for medium term notes 37955556 38604028
Interest payable for short-term borrowings
Interest payable for long-term borrowings
Interest payable for corporate bonds
53256
1246142
92258065
2582111
-
-
131513019 41186139
2、 Dividend payable
31 December 2020 31 December 2019
Restricted share dividend payable - 2985563
- 2985563
3、 Other payables
31 December 2020 31 December 2019
Subsidiaries 861745492 1472164176
Share repurchase - 118066397
Others 8877191 8754177
870622683 1598984750
(5) Investment income
2020 2019
Investment income from long-term equity investment
under cost method 1108523992 390105325
Income from structural deposits 2654504 -
Proceeds from long-term equity transfer 25261102 -
1136439598 390105325
There is no significant restriction on the remittance of investment income to the Company.
CSG Annual Report 2019
I Statement of non-recurring gains and losses
2020 2019
Gains or losses on disposal of non-current assets 1158984 909968
Government grants recognised in profit or loss for
current period (99660400) (184131420)
Income from external entrusted loans (5546384) (11894654)
Fair value movement of investment property (179911200) -
Income from structural deposits (2654504) -
Non-operating income and expenses other than
aforesaid items 6284556 1612253
(280328948) (193503853)
Effect of income tax 38334180 25951263
Effect of minority interests (after tax) 2645633 5507988
Total non-recurring gains and losses (239349135) (162044602)
(1) Basis for preparation of statement of non-recurring gains and losses
Under the requirements in Explanatory Announcement No. 1 on Information Disclosure by Companies
Offering Securities to the Public – Non-recurring Profit or Loss [2008] from CSRC non-recurring profit
or loss refer to those arises from transactions and events that are not directly relevant to ordinary
activities or that are relevant to ordinary activities but are extraordinary and not expected to recur
frequently that would have an influence on users of financial statements making economic decisions
on the financial performance and profitability of an enterprise.II Return on net assets and earnings per share
Weighted average
return on net assets
Earnings per share
Basic earnings per
share
Diluted earnings per
share
2020 2019 2020 2019 2020 2019
Net profit attributable to
ordinary shareholders of
the Company 7.91 5.77 0.25 0.17 0.25 0.17
Net profit attributable to
ordinary shareholders of
the Company after
deducting non-recurring
gains and losses 5.48 4.03 0.18 0.12 0.18 0.12
CSG Annual Report 2019
Section XI. 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 Asia Pacific (Group) CPAs (special general
partnership) and the signatures and seals of the certified public accountants;
III. All texts of the Company’s documents and original public notices disclosed in the website and papers
appointed by CSRC in the report period.IV. The reports which published in the other stock market.
Board of Directors of
CSG Holding Co. Ltd.
15 April 2021
沪公网安备31011802005267号
