Financial Report of Semi-annual Report 2021
(I) Auditors’ Report
Whether the Semi-annual Report has been audited or not
□ Yes √ No
The Company's Semi-annual Report has not been audited.(II) Financial Statements
All figures in the Notes to the Financial Statements are in RMB.1. Consolidated Balance Sheet
Prepared by CSG Holding Co. Ltd.Unit: RMB
Item June 30 2021 December 312020
Current assets
Cash at bank and on hand 1649433538 2125788903
Notes receivable 183242770 207966892
Accounts receivable 842381600 681467133
Receivables financing 444025966 382527782
Trading financial assets 382000000
Advances to suppliers 141433334 85928641
Other receivables 205710766 200969854
Of which: interest receivable 112611
Inventories 1054226305 815156318
Other current assets 114744303 140031544
Total current assets 5017198582 4639837067
Non-current assets
Investment property 383084500 383084500
Fixed assets 8742434064 9145644569
Construction in progress 2290839174 1893380611
Right of use assets 9298566
Intangible assets 1172586946 1139718255
Development expenditure 58155596 49153407
Goodwill 233375693 233375693
Long-term prepaid expenses 577769 10381937
Deferred tax assets 203555196 194979414
Other non-current assets 451995544 193359445
Total non-current assets 13545903048 13243077831
Total assets 18563101630 17882914898
Current liabilities
Short-term borrowings 312560100 352895571
Notes payable 304710352 144851192
Accounts payable 1242148009 1237833051
Contract liabilities 273225477 296776624
Employee benefits payable 255406964 342352166
Taxes payable 229367695 194921071
Other payables 233274223 287332992
Of which: interest payable 34601072 132133902
Non-current liabilities due within one year 135934639 927531709
Other current liabilities 32329042 34586292
Total current liabilities 3018956501 3819080668
Non-current liabilities
Long-term borrowings 1190557017 853253983
Bonds payable 1995284179 1994020348
Deferred income 574616481 498056081
Deferred tax liabilities 105738792 102619932
Total non-current liabilities 3866196469 3447950344
Total liabilities 6885152970 7267031012
Shareholders’ equity
Share capital 3070692107 3070692107
Capital surplus 596997085 596997085
Other comprehensive income 163139310 161816819
Special reserve 9102592 10269002
Surplus reserve 1036948422 1036948422
Undistributed profits 6381714666 5336266412
Total equity attributable to shareholders of parent company 11258594182 10212989847
Minority shareholders' equity 419354478 402894039
Total shareholders' equity 11677948660 10615883886
Total liabilities and shareholders' equity 18563101630 17882914898
Legal Representative:Chen Lin Principal in charge of accounting:Wang JianPrincipal of the financialdepartment:WangWenxin
2. Balance Sheet of the Parent Company
Unit: RMB
Item June 30 2021 December 312020
Current assets
Cash at bank and on hand 299216278 1072875571
Trading financial assets 340000000
Advances to suppliers 1656513 1650184
Other receivables 3402565195 3803908369
Of which: interest receivable 112611
Of which: dividends receivable 249087257
Other current assets 66321
Total current assets 4043437986 4878500445
Non-current assets
Long-term equity investments 6174306870 5844507870
Fixed assets 12944175 19769193
Intangible assets 348308 140836
Other non-current assets 86071233 4546275
Total non-current assets 6273670586 5868964174
Total assets 10317108572 10747464619
Current liabilities
Short-term borrowings 114000000 49800000
Accounts payable 1551761 249721
Employee benefits payable 32838881 46504458
Taxes payable 6685127 9457159
Other payables 857545717 1002135702
Of which: interest payable 33556927 131513019
Non-current liabilities due within one year 800000000
Total current liabilities 1012621486 1908147040
Non-current liabilities
Long-term borrowings 892500000 700000000
Bonds payable 1995284179 1994020348
Deferred income 172902300 180496249
Total non-current liabilities 3060686479 2874516597
Total liabilities 4073307965 4782663637
Shareholders’ equity
Share capital 3070692107 3070692107
Capital surplus 741824399 741824399
Surplus reserve 1051493782 1051493782
Undistributed profits 1379790319 1100790694
Total shareholders' equity 6243800607 5964800982
Total liabilities and shareholders' equity 10317108572 10747464619
3. Consolidated Income Statement
Unit: RMB
Item Half year of 2021 Half year of 2020
I. Total revenue 6614802538 4424221349
Of which:Business income 6614802538 4424221349
II. Total business cost 4992720799 3967771208
Of which:Business cost 4126627145 3159567031
Tax and surcharge 73966054 52338392
Sales expenses 125326015 161639534
Administrative expenses 354914704 317419407
R&D expenses 224886882 145063647
Financial expenses 86999999 131743197
Of which: interest expense 101970419 152178964
Interest income 20024847 24931363
Plus: Other income 36553804 48009326Investment income (“- “for loss) 3672330Credit impairment loss (“- “for loss) -2524048 -2961920Asset impairment loss (“- “for loss) -26753082 154053Income on disposal assets (“- “for loss) 137638 -342005III. Operational profit (“- “for loss) 1633168381 501309595Plus: non-operational income 7551798 2218131
Less: non-operational expenditure 16461985 17535553IV. Total profit (“- “for loss) 1624258194 485992173Less: Income tax expenses 255280290 84115208V. Net profit (“- “for net loss) 1368977904 401876965(I) Classification by business continuity
1. Net profit from continuing operations (“-” for net loss) 1368977904 401876965
(II) Classification by ownership
1. Equity attributable to shareholders of parent company 1352517465 391466723
2.Minority shareholder gains and losses 16460439 10410242
VI. Other comprehensive income net after tax 1322491 1366772
Other comprehensive income net after tax attributable to
1322491 1366772
shareholders of parent company
(I) Other comprehensive income that will be reclassified
1322491 1366772
into profit and loss
1.Differences on translation of foreign currency financial
1322491 1366772
statements
VII. Total comprehensive income 1370300395 403243737
Total comprehensive income attributable to shareholders of
1353839956 392833495
parent company
Total comprehensive income attributable to minority
16460439 10410242
shareholders
VIII. Earnings per share:
(I) Basic earnings per share 0.44 0.13
(II) Diluted earnings per share 0.44 0.13
Legal Representative:Chen Lin Principal in charge of accounting:Wang JianPrincipal of the financialdepartment:WangWenxin
4. Income Statement of the Parent Company
Unit: RMB
Item Half year of 2021 Half year of 2020
I. Revenue 42342857 37484754
Less: Business cost
Tax and surcharge 674374 1021570
Sales expenses
Administrative expenses 91345095 59530745
R & D expenses 616965 9250
Financial expenses 76018822 79503361
Of which: interest expense 94186512 100457503
Interest income 17977849 22683049
Plus: Other income 2018355 1955221Investment income(“- “for loss) 718475642 703591508Credit impairment loss (“- “for loss) -9473 6972Income on disposal assets (“- “for loss) 6893580 981II. Operating profit 601065705 602974510
Add: Non-operating income 29967
Less: Non-operating expenses 15026836 4119550III. Total profit (“- “for loss) 586068836 598854960Less: Income tax expensesIV. Net profit (“- “for loss) 586068836 598854960(I) Net profit for continuing operations(“- “for loss) 586068836 598854960VI. Total comprehensive income 586068836 598854960
VII. Earnings per share
(I) Basic earnings per share
(II) Diluted earnings per share
5. Consolidated Cash Flow Statement
Unit: RMB
Item Half year of 2021 Half year of 2020
I. Cash flows from operating activities
Cash received from sales of goods or rendering of services 7148379280 4739003316
Refund of taxes and surcharges 33207751 11866382
Receive other cash related to operating activities 178825175 69696304
Subtotal of cash inflow from operating activities 7360412206 4820566002
Cash paid for goods and services 3907366000 2767721923
Cash paid to and on behalf of employees 888450173 708599327
Payments of taxes and surcharges 619574024 284726645
Pay other cash related to operating activities 246776634 279873718
Subtotal of cash outflow from operating activities 5662166831 4040921613
Net cash flows from/(used in) operating activities 1698245375 779644389
II. Cash flows from investing activities
Cash received from investment recovery 1182000000
Cash received from investment income 3559719
Net cash received from disposal of fixed assets intangible
777451 723823
assets and other long-term assets
Cash received relating to other investing activities 32136351 328067104
Subtotal of cash inflows from investing activities 1218473521 328790927
Cash paid to acquire fixed assets intangible assets and
738492345 436165155
other long-term assets
Cash paid for investment 1644000000
Cash paid relating to other investing activities 6911853 21848237
Subtotal of cash outflows from investing activities 2389404198 458013392
Net cash flows (used in)/from investing activities -1170930677 -129222465
III. Cash flows from financing activities
Cash received from borrowings 605996933 1243981261
Cash received from bond issuance 1991680000
Cash received relating to other financing activities 298227
Subtotal of cash inflows from financing activities 605996933 3235959488
Cash repayments of borrowings 1099975831 1827110966
Cash payments for interest expenses and distribution of
508082947 336678849
dividends or profits
Cash payments relating to other financing activities 390507 483358139
Subtotal of cash outflows from financing activities 1608449285 2647147954
Net cash flows (used in)/from financing activities -1002452352 588811534
IV. Effect of foreign exchange rate changes on cash and
-1217711 587483
cash equivalents
V. Net increase/(decrease) in cash and cash equivalents -476355365 1239820941
Add: Cash and cash equivalents at beginning of current
2124028196 1831835030
period
VI. Cash and cash equivalents at end of current period 1647672831 3071655971
6. Cash Flow Statement of the Parent Company
Unit: RMB
Item Half year of 2021 Half year of 2020
I. Cash flows from operating activities
Refund of taxes and surcharges 613917
Cash received relating to other operating activities 29031997 29744731
Sub-total of cash inflows 29031997 30358648
Cash paid to and on behalf of employees 77605388 79870460
Payments of taxes and surcharges 11908472 7235926
Cash paid relating to other operating activities 31121887 13995974
Sub-total of cash outflows 120635747 101102360
Net cash flows from/(used in) operating activities -91603750 -70743712
II. Cash flows from investing activities
Cash received from investment recovery 1090000000
Cash received from investment income 967450288 703591508
Net cash received from disposal of fixed assets intangible
101560 1000
assets and other long-term assets
Cash received relating to other investing activities 300000000
Sub-total of cash inflows 2057551848 1003592508
Cash paid to acquire fixed assets intangible assets and
2669478 5332761
other long-term assets
Cash paid for investing activities 1839799000 188500000
Sub-total of cash outflows 1842468478 193832761
Net cash flows (used in)/from investing activities 215083370 809759747
III. Cash flows from financing activities
Cash received from borrowings 314000000 832999801
Cash received from issuing bonds 1991680000
Cash received relating to other financing activities 143736716
Sub-total of cash inflows 457736716 2824679801
Cash repayments of borrowings 857300000 1331999801
Cash payments for interest expenses and distribution of
497947983 308585809
dividends or profits
Other cash paid relating to financing activities 722080591
Subtotal of cash outflows from financing activities 1355247983 2362666201
Net cash flows (used in)/from financing activities -897511267 462013600
IV. Effect of foreign exchange rate changes on cash and
372354 5810
cash equivalents
V.Net increase/(decrease) in cash and cash equivalents -773659293 1201035445
Add: Cash and cash equivalents at beginning of current
1071200364 1407215863
period
VI. Cash and cash equivalents at end of current period 297541071 2608251308
7. Consolidated Statement of Changes in Owners’ Equity
Amount of the current period
Unit: RMB
Half year of 2021
Owners’ Equity Attributable to the Parent Company
Minority
Item Other Total shareholders'
Capital Special Undistributed shareholders'
Share capital comprehensive Surplus reserve Subtotal equity
surplus reserves profits equity
income
I. Balance at the end of the previous
3070692107 596997085 161816819 10269002 1036948422 5336266412 10212989847 402894039 10615883886
year
II. Balance at the beginning of current
3070692107 596997085 161816819 10269002 1036948422 5336266412 10212989847 402894039 10615883886
year
III. Amount of change in current
1322491 -1166410 1045448254 1045604335 16460439 1062064774term(“- “for decrease)(I) Total amount of the comprehensive
1322491 1352517465 1353839956 16460439 1370300395
income
(II) Capital paid in and reduced by
owners
1. The amount of share-based
payment included in owner's equity
2. Others
(III) Profit distribution -307069211 -307069211 -307069211
1. Appropriations to owners (or
-307069211 -307069211 -307069211
shareholders)
(IV) Internal carry-forward of owners’
equity
(V) Specific reserve -1166410 -1166410 -1166410
1. Withdrawal in the period
2. Used in the period 1166410 1166410 1166410
(VI) Others
IV. Balance at the end of the period 3070692107 596997085 163139310 9102592 1036948422 6381714666 11258594182 419354478 11677948660
Amount of the previous period
Unit: RMB
Half year of 2020
Owners’ Equity Attributable to the Parent Company
Other Minority Total
Item
Capital Less: treasury comprehe Special Surplus Undistributed shareholders' shareholders'
Share capital Subtotal
surplus share nsive reserves reserve profits equity equity
income
I. Balance at the end
3106915005 683219358 118066397 6565864 11102921 946251286 4859600841 9495588878 370266650 9865855528
of the previous year
II. Balance at the
beginning of current 3106915005 683219358 118066397 6565864 11102921 946251286 4859600841 9495588878 370266650 9865855528
year
III. Amount of
change in current
-36222898 -86222273 -118066397 1366772 -436183 179503838 176055653 10410242 186465895term(“- “fordecrease)
(I) Total amount of
the comprehensive 1366772 391466723 392833495 10410242 403243737
income
(II) Capital paid in
and reduced by -36222898 -86222273 -118066397 -4378774 -4378774
owners
1. The amount of
share-based
-36222898 -86222273 -118066397 -4378774 -4378774
payment included in
owner's equity
2. Others
(III) Profit
-211962885 -211962885 -211962885
distribution
1. Appropriations to
owners (or -211962885 -211962885 -211962885
shareholders)
(IV) Internal
carry-forward of
owners’ equity
(V) Specific reserve -436183 -436183 -436183
1. Withdrawal in the
period
2. Used in the period 436183 436183 436183
(VI) Others
IV. Balance at the
3070692107 596997085 7932636 10666738 946251286 5039104679 9671644531 380676892 10052321423
end of the period
8. Statement of changes in owner's equity of the parent company
Amount of the current period
Unit: RMB
Half year of 2021
Item Total shareholders'
Share capital Capital surplus Surplus reserve Undistributed profits
equity
I. Balance at the end of the previous year 3070692107 741824399 1051493782 1100790694 5964800982
II. Balance at the beginning of current year 3070692107 741824399 1051493782 1100790694 5964800982III. Amount of change in current term(“- “for decrease) 278999625 278999625(I) Total amount of the comprehensive income 586068836 586068836
(II) Capital paid in and reduced by owners
1. The amount of share-based payment included in owner's equity
(III) Profit distribution -307069211 -307069211
1. Withdrawal of surplus reserve
2. Appropriations to owners (or shareholders) -307069211 -307069211
(IV) Internal carry-forward of owners’ equity
(V) Special reserve
IV. Balance at the end of the period 3070692107 741824399 1051493782 1379790319 6243800607
Amount of the previous period
Unit: RMB
Half year of 2020
Item Capital Less: treasury Surplus Undistributed Total shareholders'
Share capital
surplus share reserve profits equity
I. Balance at the end of the previous year 3106915005 828046672 118066397 960796646 496479354 5274171280
II. Balance at the beginning of current year 3106915005 828046672 118066397 960796646 496479354 5274171280
III. Amount of change in current term(“- “for decrease) -36222898 -86222273 -118066397 386892075 382513301(I) Total amount of the comprehensive income 598854960 598854960
(II) Capital paid in and reduced by owners -36222898 -86222273 -118066397 -4378774
1.The amount of share-based payment included in owner's equity -36222898 -86222273 -118066397 -4378774
(III) Profit distribution -211962885 -211962885
1. Withdrawal of surplus reserve -211962885 -211962885
2. Appropriations to owners (or shareholders)
(IV) Internal carry-forward of owners’ equity
(V) Special reserve
IV. Balance at the end of the period 3070692107 741824399 960796646 883371429 5656684581
III. Basic Information of the Company
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 June
30 2021 the registered capital was RMB 3070692107 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 specialized glass engineering glass energy saving glass silicon related materials polysilicon and solar components and
electronic-grade display device glass and the construction and operation of photovoltaic plant etc.The financial statements were authorized for issue by the Board of Directors on August 25 2021.Details on the major subsidiaries included in the consolidated scope in current year were stated in the Note.IV. Basis of the preparation of financial statements
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.2. Going concern
This financial report is prepared on the basis of going concern.V. Significant accounting policies and accounting estimates
The Group determines specific accounting policies and accounting estimates based on the characteristics of production and operation
which are mainly reflected in the measurement of expected credit losses of receivables the valuation method of inventories fixed
asset depreciation and intangible asset amortization judgment standards for capitalization of development expenditures income
confirmation time etc.Please see the Note for the key judgements adopted by the Group in applying important accounting policies.1. Statement of compliance with the Accounting Standards for Business Enterprises
The financial statements of the Company for the first half year of 2021 truly and completely present the financial position as of June
30 2021 and the operating results cash flows and other information for the first half year of 2021 of the Group and the Company in
compliance with the Accounting Standards for Business Enterprises.2. Accounting period
The Company’s accounting year starts on 1 January and ends on 31 December.3. Operating cycle
The Company’s operating cycle starts on 1 January and ends on 31 December.4. Recording currency
The recording currency is Renminbi (RMB).5. Accounting treatment method of business combination under common control and not under common
control
(a)Business combinations involving entities under common control
The consideration paid and net assets obtained by the absorbing party in a business combination are measured at book value. 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 recognized amounts of the equity or debt securities.(b) Business combinations involving entities 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 recognized 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 recognized 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 recognized amounts of the equity
or debt securities.6. Preparation 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
ultimate controlling party. The portion of the net profits realised before the combination date 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 recognized 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. Criteria for determining cash and cash equivalents
Cash and cash equivalents comprise cash on hand deposits that can be readily drawn on demand and short-term and highly liquid
investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.8. Translating of foreign currency operations and foreign currency report form
(a) Foreign currency transaction
Foreign currency transactions are translated into RMB using the exchange rates prevailing at the dates of the transactions.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 recognized 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 a contract that forms a financial asset of one party and forms a financial liability or equity instrument of the
other party. A financial asset or a financial liability is recognized when the Group becomes a party to the contractual provisions of the
instrument.(a)Financial assets
(i)Classification and measurement
According to the business model of the financial assets under management and the characteristics of the contractual cash flow of the
financial assets the Company divides the financial assets into the following three categories: (1) Financial assets measured at
amortized cost; (2) Financial assets measured 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 recognized amounts except for the financial assets at fair value through profit or loss
therelated transaction costs of which are recognized 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 recognized 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 three 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 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 recognized 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 other receivables debt
investment and long-term receivables. Debt investment and long-term receivables that are due within one year (inclusive) as from
the balance sheet date are listed as non-current assets due within one year. Debt investments that are due within one year (inclusive)
are listed as other current assets.Measured 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 recognized 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 debt
instrument investments measured at fair value and whose changes are included in other comprehensive income and financial
guarantee contracts etc.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 .As at each balance sheet date the expected
credit losses of financial instruments at different stages are measured respectively. 12-month ECL provision is recognized for
financial instruments in Stage 1 that have not had a significant increase in credit risk since initial recognition; lifetime ECL provision
is recognized 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 recognized for financial instruments in Stage 3 that have had creditimpairment
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 recognizes 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 receivables financing arising from daily business activities such as selling commodities and
providing labor services regardless of whether there is a significant financing component the Group measures the loss provision
based on the expected credit loss for the entire duration.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 accounts receivablesdivided into portfolios notes 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 factoringreceivables and other receivables classified as a
combination The Group refers to the historical credit loss experience combines with the current situation and the prediction of
future economic conditions and calculates the expected credit loss through the default risk exposure and the expected credit loss rate
in the next 12 months or the entire duration.The Group recognizes 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 derecognized when any of the below criteria is met: (1)the contractual rights to receive the cashflows from the
financial asset expire; (2) the financial asset has been transferred and the Group transfers substantially all the risks and rewards of
ownership of the financial asset to the transferee;(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 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; if the maturity is more than one year but matures within one year (including one year) from the balance sheet date
it is listed as non-expiring within one year Current liabilities; the rest are listed as non-current liabilities.(c)Determination of fair value of financial instruments
The fair value of a financial instrument that is tradedinanactive 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 adequateavailable data and other information
selects inputs with the same characteristics as those of assets or liabilities considered in relevant transactions of assets or liabilitiesby
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 etc. and
are measured at the lower of cost and net realizable value.(b)Valuation method for issuing inventory
The cost at the time of inventory delivery 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.(c)Amortization methods of low-value consumables and packaging materials
Turnover materials include low-value consumables and packaging materials amortized using the one-off write-off method.(d) The determination of net realizable 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
realizable value. Net realizable 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. 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 recognized 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 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.12. 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 recognized as investment income in profit or loss.For long-term equity investments accounted for by the equity method if the initial investment cost is greater than the fair value of the
investee’s identifiable net assets the initial investment cost shall be used as the long-term equity investment cost; if the initial
investment cost is less than the investment the invested entity shall be entitled to If the fair value share of net assets is identifiable
the difference is included in the current profit and loss and the cost of equity investment in the growth period is adjusted accordingly.For long-term equity investments accounted for using the equity method the Group recognizes 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 the carrying
amounts 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 shareholding of the Group in the investee
remains unchanged. The carrying amount 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 transactions between the Group and its investees are eliminated
in proportion to the Group’s equity interest in the investees based on which the investment gain or losses are recognized. 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.13. 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 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 property shall be terminated. The disposal income from the sale
transfer scrapping or destruction of Investment property 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.14. Fixed assets
(1) Recognition condition
Fixed assets comprise buildings machinery and equipment motor vehicles and others.Fixed assets are recognized 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
derecognized. All the other subsequent expenditures are recognized in profit or loss in the period in which they are incurred.
(2) Depreciation methods
Fixed assets are depreciated using the straight-line 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:
Item Depreciation method Estimated useful lives Estimated net Annual depreciation rate
residual value
Building Straight-line method 20 to 35 years 5% 2.71% to 4.75%
Machinery and equipment Straight-line method 8 to 20 years 5% 4.75% to 11.88%
Motor vehicles and others Straight-line method 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.
(3) Book value of a fixed asset is reduced to the recoverable amount when the recoverable amount is below book value.
(4) Disposal
A fixed asset is derecognized 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 ofits carrying amount and related taxes and
expenses is recognized in profit or loss for the current period.15. 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.16. Borrowing costs
The borrowing costs incurred by the group 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 recognized 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 the amount of interest expenses actually incurred in the current period of
special borrowing 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.17. Right of use asset
The Group's right of use assets are mainly land use rights and others.On the beginning date of the lease term the Group recognizes the right to use the leased asset within the lease term as the right of use
assets including: the initial measurement amount of the lease liability; For the lease payment paid on or before the beginning of the
lease term if there is lease incentive the relevant amount of lease incentive enjoyed shall be deducted; Initial direct expenses
incurred by the lessee; The estimated cost incurred by the lessee for dismantling and removing the leased asset restoring the site
where the leased asset is located or restoring the leased asset to the state agreed in the lease terms. The group subsequently
depreciates the right of use assets using the straight-line method. If it can be reasonably determined that the ownership of the leased
asset is obtained at the expiration of the lease term the group accrues depreciation within the remaining service life of the leased
asset. If it is impossible to reasonably determine that the ownership of the leased asset can be obtained at the expiration of the lease
term the group accrues depreciation within the shorter of the lease term and the remaining service life of the leased asset.When the group remeasures the lease liability according to the present value of the changed lease payment and adjusts the book value
of the right of use asset accordingly if the book value of the right of use asset has been reduced to zero but the lease liability still
needs to be further reduced the group will include the remaining amount in the current profit and loss.18. Intangible assets
(1)Valuation method useful life and impairment test
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 recognized as fixed assets.(b)Patents and proprietary technologies
Patents and proprietary technologies 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 amortization method
For an intangible asset with a finite useful life review of its useful life and amortization method is performed at each year-end with
adjustment made as appropriate.(e) Impairment of intangible assets
Book value of intangible assets is reduced to the recoverable amount when the recoverable amount is below book value.
(2)Accounting policy for internal research and development expenditure
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
recognized 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 recognized in profit or loss in the period in which they are
incurred. Development costs previously recognized as expenses are not recognized 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.19. 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 recognized 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 recognized 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.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
carrying amount the corresponding impairment loss is recognized. 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 recognized it will not be reversed for the value recovered in the subsequent periods.20. Long-term prepaid expenses
Long-term prepaid expenses include the expenditures that have been incurred but should be recognized 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 amortization.21. 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.
(1) Accounting treatment method of 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 recognized 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.
(2)Accounting treatment method of 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.
(3)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 recognized 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.
(4)Accounting treatment of dismissal 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 recognizes 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 recognizes costs or
expenses related to the restructuring that involves the payment of termination benefits.The dismissal benefits expected to be paid within one year since the balance sheet date are classified as current liabilities.22. Lease liabilities
At the beginning of the lease term the Group recognizes the present value of the unpaid lease payments as lease liabilities except for
short-term leases and low value asset leases. When calculating the present value of lease payments the group adopts the interest rate
embedded in the lease as the discount rate; If the interest rate embedded in the lease cannot be determined the lessee's incremental
loan interest rate shall be used as the discount rate. The group calculates the interest expense of the lease liability in each period of
the lease term according to the fixed periodic interest rate and records it into the current profit and loss unless otherwise specified it
is included into the cost of relevant assets. The amount of variable lease payments not included in the measurement of lease liabilities
shall be included in the current profits and losses when they actually occur unless otherwise specified to be included in the cost of
relevant assets.After the beginning date of the lease term when the actual fixed payment amount changes the expected payable amount of the
guaranteed residual value changes the index or ratio used to determine the lease payment amount changes the evaluation results or
actual exercise of the purchase option renewal option or termination option change The group remeasures the lease liabilities
according to the present value of the changed lease payments.23. Estimated liabilities
Current obligations arising from enterprise restructuring product quality assurance onerous contracts etc. are recognized as
estimated liabilities when the performance of such obligations is likely to lead to the outflow of economic benefits and the amount
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
recognized 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.24. 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. 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 recognized the increase in access to services. 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 confirmed 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.25. Revenue
The Group recognizes 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.(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
recognizes revenue. For export sales the Group recognizes the revenue when it finished clearing goods for export and delivering 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.26. 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 recognized 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 grants 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 recognized as deferred income and included in profit or loss over the periods in which
the related costs are recognized; where the grant is a compensation for related expenses or losses already incurred by the Group the
grant is recognized immediately in profit or loss for the current period.The company use the same method of presentation for similar
government grants.The ordinary activity government grants should be counted into operating profits; the government grants which not belong to
ordinary activities should be counted inton non-operationg income.27. Deferred tax assets and deferred tax liabilities
Deferred tax assets and deferred tax liabilities are calculated and recognized based on the differences arising between the tax bases of
assets and liabilities and their carrying amounts (temporary differences). Deferred tax asset is recognized 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 recognized for a temporary difference arising from the initial recognition of goodwill. No deferred tax asset or deferred tax
liability is recognized 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 realized or the liability is settled.Deferred tax assets are only recognized 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 utilized.Deferred tax liabilities are recognized 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 utilized the corresponding deferred tax assets are recognized.Deferred income tax assets and deferred income tax liabilities that meet the following conditions at the same time are listed as the net
amount after offset:
The deferred taxes are related to the same tax payer within the Group and the same taxation authority;
That tax payer within the Group has a legally enforceable right to offset current tax assets against current tax liabilities.28. Leases
Lease refers to a contract in which the lessor transfers the right of use assets to the lessee for consideration within a certain period of
time.The group as the lessee
The Group recognizes the right of use assets on the beginning date of the lease term and recognizes the lease liabilities according to
the present value of the unpaid lease payments. Lease payments include fixed payments and payments to be made when it is
reasonably determined that the option to purchase or terminate the lease will be exercised. The variable rent determined according to
a certain proportion of sales is not included in the lease payment and is included in the current profit and loss when it actually occurs.The group lists the lease liabilities paid within one year (including one year) from the balance sheet date as non current liabilities due
within one year.The group's use right assets include leased land use rights etc. The right of use assets are initially measured at cost which includes
the initial measurement amount of lease liabilities lease payments paid on or before the beginning of the lease term initial direct
expenses etc. and deducting the received lease incentives. If the group can reasonably determine the ownership of the leased asset at
the expiration of the lease term depreciation shall be accrued within the remaining service life of the leased asset; If it is impossible
to reasonably determine whether the ownership of the leased asset can be obtained at the expiration of the lease term depreciation
shall be accrued within the shorter of the lease term and the remaining service life of the leased asset. When the recoverable amount
is lower than the book value of the right of use assets the group will write down its book value to the recoverable amount.For short-term leases with a lease term of no more than 12 months and low value asset leases with a lower value when a single asset
is new the group chooses not to recognize the right of use assets and lease liabilities and the relevant rental expenses are included in
the current profit and loss or the cost of relevant assets according to the straight-line method in each period of the lease term.The group as the lessor
The lessor shall divide the lease into financing lease and operating lease on the lease commencement date. Finance lease refers to a
lease that substantially transfers almost all the risks and rewards related to the ownership of the leased asset. Leases other than
finance leases are classified as operating leases.As an operating lessor
The rental income from operating leases is recognized as the current profit and loss by the straight-line method in each period of the
lease term and the variable lease payments not included in the lease receipts are included in the current profit and loss when they
actually occur. If the operating lease is changed the group will treat it as a new lease for accounting from the effective date of the
change and the advance receipt or lease receivable related to the lease before the change is regarded as the receipt of the new lease.As a financial lessor
The lessor shall on the lease commencement date take the minimum lease receipts on the lease commencement date as the entry
value of the finance lease receivables record the unguaranteed residual value at the same time and record the difference between the
sum of the minimum lease receipts and the unguaranteed residual value and the sum of their present value as unrealized financing
income.29. Other important accounting policies and accounting estimates
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:
(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 is subject to sufficient taxable income that is 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.30. Significant accounting policies and changes in accounting estimates
(1) Important accounting policy changes
√ Applicable □Not applicable
The accounting standards for Business Enterprises No. 21 - leasing (hereinafter referred to as the new leasing standards) revised and
issued by the Ministry of Finance in December 2018. The group and the company have adopted the above standards to prepare the
financial statements for the half year of 2021. The impact of the newly revised leasing standards on the financial statements of the
group and the company is as follows:
Affected amount
Contents and reasons for changes in
Affected report items January 1 2021
accounting policy
Consolidated Company
Due to the implementation of the new Right of use assets 9640758
lease standards the group and the
company reclassify the amount of
long-term deferred expenses in line with Long-term deferred expenses -9640758
the right of use assets to the right of use
assets.⑵ Important accounting estimate changes
□ Applicable √Not applicable
(3) The first implementation of the new lease standard from 2021 adjustments to the first implementation
of the financial statements related items at the beginning of the year
√Applicable □Not applicable
Is it necessary to adjust the balance sheet accounts at the beginning of the year
√Yes □No
Unit: RMB
Item 31 December 2020 1 January 2021 Adjustment
Long-term deferred expenses 10381937 741179 -9640758
Right of use assets 9640758 9640758
Total 10381937 10381937
According to the "Accounting Standards for Business Enterprises No. 21-Leases" (hereinafter collectively referred to as the New
Lease Standards) issued by the Ministry of Finance of the People's Republic of China in December 2018 companies that are listed at
the same time both domestically and overseas as well as those listed overseas and adopt financial reporting standards are required Or
companies that implement the Accounting Standards for Business Enterprises shall take effect on January 1 2019; other companies
that implement the Accounting Standards for Business Enterprises shall take effect on January 1 2021.
(4) The first implementation of the new lease standard from 2021 retrospective adjustment of the previous
comparative data description
□ Applicable √Not applicable
31. Others
(1)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 are 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 recognized. The fixed assets are no longer be depreciated in future.(2) 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: (a) the component is able to earn
revenue and incur expenses from its ordinary activities; (b) 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 (c) 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.VI.Taxation
1. The main categories and rates of taxes
Category Taxable basis Tax rate
Enterprise income tax Taxable income 0%-25%
Taxable value-added amount (Tax payable is
calculated using the taxable sales amount multiplied
Value-added tax (“VAT”) 1%-13%
by the applicable tax rate less deductible VAT input of
the current period)
City maintenance and
VAT paid 1%-7%
construction tax
Educational surcharge VAT paid 3%-5%
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. In the 2021 High Tech Review the income tax rate is temporarily 15% in the report period.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 Panel Glass Co. Ltd. (“Hebei Panel Glass”) 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.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
in2018 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. In the 2021 High Tech Review the income tax rate is temporarily 15% in the report period.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. In the 2021 High Tech Review the income tax rate is temporarily 15% in the report period.Yichang CSG Display Co. Ltd (“Yichang CSG Displayer”) 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. In the 2021 High Tech Review the income tax rate is temporarily 15% in the report period.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 recognized 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. In the
2021 High Tech Review the income tax rate is temporarily 15% in the report period.Shenzhen CSG Applied Technology Co. Ltd. (“Shenzhen Technology”) was recognized 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. In the 2021 High Tech Review the income tax rate is temporarily 15% in the report period.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 period.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 period.Qingyuan CSG New Energy Co. Ltd. (“Qingyuan CSG New Energy”) Suzhou CSG PV Energy Co. Ltd. (“Suzhou CSG PVEnergy”) Jiangsu Wujiang CSG New Energy Co. Ltd. (“Wujiang CSG New Energy”) and Yichang CSG New Energy Co. Ltd.(“Yichang CSG New Energy”) Zhangzhou CSG Kibing PV Energy Co. Ltd. (“Zhangzhou CSG”) Heyuan CSG Kibing PV Energy
Co. Ltd. (“Heyuan CSG”) Shaoxing CSG Kibing PV Energy Co. Ltd. (“Shaoxing CSG”) XianningCSG 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 ofthe People's Republic of China on Enterprise Income Tax and can enjoy the tax preferential policy of “three-year exemptions andthree-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.3. Others
Some subsidiaries of the Group have used the “exempt credit refund” method on goods exported and the refund rate is0%-13%。
VII. Notes to the consolidated financial statements
1. Cash at bank and on hand
Unit: RMB
Item Balance at the end of the period Balance at the beginning of the period
Cash on hand 2899 2725
Cash at bank 1457598945 1463954484
Other cash balances 191831694 661831694
Total 1649433538 2125788903
Including: Total overseas deposits 14137999 8610575
Other cash balances amounting to RMB 1760707 (Dec. 31 2020: RMB 1760707) which is restricted cash.2. Notes receivable
(1) Notes receivable listed by classification
Unit: RMB
Item Balance at the end of the period Balance at the beginning of the period
Trade acceptance notes 183242770 207966892
Total 183242770 207966892
(2) Notes receivable endorsed or discounted by the company at the end of the period and not yet due on the
balance sheet date
Unit: RMB
Amount of recognition termination at the Amount of not terminated recognition at
Item
period-end the period-end
Trade acceptance notes 46332724
Total 46332724
3. Accounts receivable
(1) Accounts receivable disclosed by category
Unit: RMB
End of term Beginning of term
Provision for bad Provision for bad
Carrying amount Carrying amount
Category debts debts
Book value Book value
Proporti Proporti Propor Propor
Amount Amount Amount Amount
on on tion tion
Provision for
bad debts on
30906348 4% 18705804 61% 12200544 32282145 5% 19736937 61% 12545208
the individual
basis
Provision for
bad debts by 847123526 96% 16942470 2% 830181056 682567524 95% 13645599 2% 668921925
portfolio
Total 878029874 100% 35648274 4% 842381600 714849669 100% 33382536 5% 681467133
Provision for bad debts on the individual basis:
Unit: RMB
Name Closing balance
Carrying amount Provision for bad debts Proportion Reasons for withdrawal
Mainly due to some of the subsidiaries'
Provision for bad accounts receivable from customers due to
debts on the individual 30906348 18705804 61% business disputes or deterioration of customer
basis operations partial or full provision for bad
debts was made.Total 30906348 18705804 -- --
Provision for bad debts by portfolio
Unit: RMB
Closing balance
Name
Carrying amount Provision for bad debts Proportion
Portfolio 1 847123526 16942470 2%
Total 847123526 16942470 --
Disclosure by the aging of accounts receivable
Unit: RMB
Aging Closing balance
Within 1 year (including 1 year) 763842563
1 to 2 years 50168188
2 to 3 years 43521299
Over 3 years 20497824
Total 878029874
(2)Provision for bad debts accrued recovered or reversed in the current period
Unit: RMB
Amount of change in the current period
Opening
Category Collect or Closing balance
balance Provision Write-off Others
reversal
Accounts receivable
33382536 7936480 5523025 147717 35648274
bad debt provision
Total 33382536 7936480 5523025 147717 35648274
(3) Accounts receivable actually written off in the current period
Unit: RMB
Item Amount written off
Accounts receivable from subsidiaries 147717
(4) Top 5 of the closing balance of the accounts receivable collected according to the arrears party
Unit: RMB
Closing balance of accounts Proportion in the total balance of accounts Ending balance of bad debt
Name
receivable receivable at the end of the period reserves
Total balances for the five
245809132 28% 4916183
largest accounts receivable
Total 245809132 28% 4916183
4. Receivables financing
Unit: RMB
Item Closing balance Opening balance
Bank acceptance notes 444025966 382527782
Total 444025966 382527782
(a) On June 30 2021 the Group listed the endorsed or discounted but not yet due notes receivable in receivables financing as
follows:
Unit: RMB
Amount derecognized at the end of the Unrecognized amount at the end of the
Item
period period
Bank acceptance notes 2120718232
Total 2120718232
5. Trading financial assets
Unit: RMB
Item Closing balance Opening balance
Financial assets measured at fair value382000000
through profit or loss
Of which: structured deposits 382000000
Total 382000000
6. Advances to suppliers
(1) Listed by aging analysis
Unit: RMB
Closing balance Opening balance
Aging
Amount Proportion Amount Proportion
within1year 139290003 99% 84647719 99%
1 to 2years 2025165 1% 1162756 1%
2 to 3years 118166
over 3 years 118166
Total 141433334 100% 85928641 100%
As at June 30 2021 advances to suppliers over 1 year with a carrying amount of RMB 2143331 (31 December 2020: RMB 1280922)
were mainly prepaid to supplier for materials which were not fully settled since the materials had not been received.
(2) Top 5 of the closing balance of the advances to suppliers collected according to the target
Unit: RMB
Percentage in total advances to suppliers
Balance
balance
Total balances for the five largest advances to suppliers 66929022 47%
7. Other receivables
Unit: RMB
Item Closing balance Opening balance
Interest receivable 112611
Other receivables 205598155 200969854
Total 205710766 200969854
(1) Interest receivable
1) Classification of interest receivable
Item Closing balance Opening balance
Interest receivable 112611
Total 112611
(2) Other receivables
1) Classification of other receivables by nature
Unit: RMB
Nature Closing book balance Opening book balance
Receivables from special fund for talent 171000000 171000000
Refundable deposits 6515086 6723194
Payments made on behalf of other parties 24014527 18672346
Petty cash 1710701 969748
Advance payment (i) 10366164 10366164
Others 8479296 9615428
Total 222085774 217346880
(i) It is the prepayment for materials of the subsidiary Yingde CBM Mining Co. Ltd. The prepayments accounts were transferred to
other receivables and the provision of the bad debts was provided individually.2）Withdrawal of bad debt provision
Unit: RMB
Phase I Phase II Phase III
Expected credit Expected credit loss for the Expected credit loss for the
Bad debt provision Total
losses in the next 12 entire duration (no credit entire duration (credit
months impairment occurred) impairment occurred)
Balance on1 January
4136991 12240035 163770262021
Balance on1 January
—— —— —— ——
2021 in current period
--Transferred to the
Phase II
--Transferred to the
Phase III
-- Transferred back to the
Phase II
-- Transferred back to the
Phase I
Withdrawal 165501 165501
Recovery 54908 54908
Write-off
Verification
Other changes
Balance on 30 June 2021 4247584 12240035 16487619
3) Significant changes in book balance of loss reserve during the current period
□ Applicable √Not applicable
4) Disclosure by the aging of other receivables
Unit: RMB
Aging Closing balance
Within 1 year (including 1 year) 13050601
1 to 2 years 4691595
2 to 3 years 4553544
Over 3 years 199790034
3 to 4 years 4199282
4 to 5 years 357679
Over 5 years 195233073
Total 222085774
5) Provision for bad debts withdrawn recovered or reversed during the report period
Provision for bad debts:
Unit: RMB
Amount of change in the current period
Opening
Category Collect or Closing balance
balance Provision Write-off Others
reversal
Provision for bad
debts of other 16377026 165501 54908 16487619
receivables
Total 16377026 165501 54908 16487619
6) Top 5 of the closing balance of the other accounts receivable collated according to the arrears party
Unit: RMB
Proportion in the
total balance of other Closing balance of
Name of Company Nature of business Closing balance Aging
receivables at the bad debt provision
end of the period
Company A Independent third party 171000000 Over 5 years 77% 3420000
Governmental
11556004 Over 5 years 5% 231120
department B Independent third party
Company C Independent third party 10366164 Over 5 years 5% 10366164
Company D Independent third party 5570340 Within 1 year 3% 111407
Company E Independent third party 2397512 1 to 3 Years 1% 47950
Total -- 200890020 -- 91% 14176641
8. Inventories
Whether the new revenue standard has been implemented
√ Yes □ No
(1) Inventory classification
Unit: RMB
Closing balance Opening balance
Reserve for depreciation Reserve for depreciation
Item Carrying of inventory or Carrying of inventory or
Book value Book value
amount impairment of contract amount impairment of contract
performance cost performance cost
Raw materials 389946146 1482237 388463909 274659097 1756185 272902912
Products in
26364548 26364548 28355865 28355865
process
Products in stock 598597706 7375030 591222676 479482759 9369218 470113541
Material in
48444935 269763 48175172 44603984 819984 43784000
circulation
Total 1063353335 9127030 1054226305 827101705 11945387 815156318
(2)Provision for decline in the value of inventories
Unit: RMB
Increased in this term Decreased in this term
Item Opening balance Closing balance
Provision Others Reversal or write off Others
Raw materials 1756185 273948 1482237
Products in stock 9369218 1994188 7375030
Material in
550221 269763
circulation 819984
Total 11945387 2818357 9127030
9. Other current assets
Unit: RMB
Item Closing balance Opening balance
VAT to be offset 99590999 110350299
Enterprise income tax prepaid 1474796 17508242
VAT input to be recognized 13678003 12106681
Others 505 66322
Total 114744303 140031544
10. Investment property
(1) Investment property with fair value measurement mode
√Applicable □ Not applicable
Unit: RMB
Item Houses buildings and related land use rights
I. Opening balance 383084500
II. Changes in the current period
Changes in fair value
III. Closing balance 383084500
On July 7 2020 the Company passed the proposal on converting some self use real estate into investment real estate at the interim
meeting of the ninth Board of Directors and decided to change the use mode of some self use buildings and related land use rights to
external leasing so as to obtain the rental income.From January to June 2021 the fair value of investment property remained unchanged.As of June 30 2021 the Company's investment property was unsecured.11. Fixed assets
Unit: RMB
Item Closing balance Opening balance
Fixed assets 8742434064 9145644569
Total 8742434064 9145644569
(1) Particulars of fixed assets
Unit: RMB
Machinery and
Item Buildings Motor vehicles Total
equipment
I. Original book value:
1. Opening balance 3935917690 12009950305 240065141 16185933136
2. Increased amount of the period
(1) Acquisition 187408 21536978 10686329 32410715
(2) Transfers from construction in progress 3794668 41519615 3085303 48399586
3. Decreased amount of the period
(1) Disposal or retirement 326702 14088033 6955326 21370061
(2) Transfer to construction in progress 4350817 4350817
(3) Others 4020605 875444 4896049
4. Closing balance 3935552459 12054568048 246006003 16236126510
II. Accumulative depreciation
1. Opening balance 1000672653 4982036862 221652650 6204362165
2. Increased amount of the period
(1) Provision 60922224 376935218 10697694 448555136
3. Decreased amount of the period
(1) Disposal or retirement 178158 12880514 6795236 19853908
(2) Transfer to construction in progress 2050431 2050431
4. Closing balance 1061416719 5344041135 225555108 6631012962
III. Depreciation reserves
1. Opening balance 34966687 800882872 76843 835926402
2. Increased amount of the period
(1) Provision 1355749 25397000 333 26753082
3. Decreased amount of the period
4. Closing balance 36322436 826279872 77176 862679484
IV. Book value
1. Closing book value 2837813304 5884247041 20373719 8742434064
2. Opening book value 2900278350 6227030571 18335648 9145644569
(2) Fixed assets with pending certificates of ownership
Unit: RMB
Item Carrying amount Reasons for not yet obtaining certificates of title
Have submitted the required documents and are in the process of
Buildings 828226388
application or the related land use right certificate pending
12. Construction in process
Unit: RMB
Item Closing balance Opening balance
Construction in process 2290839174 1893380611
Total 2290839174 1893380611
(1) Particulars of construction in process
Unit: RMB
Closing balance Opening balance
Provision Provision
Item for for
Book balance Book value Book balance Book value
impairment impairment
loss loss
Yichang CSG polysilicon
tech-innovation project 1535667571 594037334 941630237 1535667571 594037334 941630237
Qingyuan New Materials Phase I
technical transformation project 418460409 418460409 413852963 - 413852963
Dongguan PV B Building 450MW
PERC battery technology upgrade
project 204832535 204832535 204801994 - 204801994
Anhui Lightweight & high-permeability
panel for solar energy equipment
manufacturing base project 144743223 144743223 15039984 - 15039984
Zhaoqing CSG high-grade energy
saving glass production line project 124468478 124468478 47026508 - 47026508
Dongguan solar light and
high-efficiency double-glass processing
production line construction project 72387751 12749513 59638238 56711889 12749513 43962376
Tianjin Energy-saving Coating
Production Line Purchase and Upgrade
Project 67770962 67770962 - - -
Yichang display device company flat
panel display project 59847726 59847726 44013628 - 44013628
LED Sapphire Substrate Project 32420412 32420412 - 32420412 32420412 -
Wujiang
Architectural Glass newly building
intelligent manufacturing plant
construction project 25062668 25062668 760313 - 760313
Anhui Fengyang quartz sand project 13861690 13861690 1775552 - 1775552
Zhaoqing CSG high-grade automobile
glass production line project 12194453 12194453 3403090 - 3403090
Hebei Panel Glass ultra-thin electronic
glass Line II construction project 9936478 9936478 9568451 - 9568451
Wujiang Float Lightweight and 8722711 8722711 3572478 - 3572478
High-efficiency double-glass processing
production line construction project
Xianning CSG 1200T/D Photovoltaic
Packaging Material Production Line
Project 3369681 3369681 - - -
Others 196299685 196299685 163973037 163973037
Total 2930046433 639207259 2290839174 2532587870 639207259 1893380611
（2）Changes in important construction projects in the current period
Unit: RMB
Including:
Proportion Accumulate amount Interest
Transfer to between d amount of interest capitalizati
Opening Increased this Closing
Project Budget fixed assets engineering Progress Projects interest capitalizati on rate in Fund recourse
balance term balance
in this term input and capitalizatio on in current
budget n current period
period
Yichang CSG polysilicon Internal fund
49520000 1535667571 1535667571 98% 100%
tech-innovation project and bank loan
Qingyuan New Materials
Phase I technical 217690000 413852963 4607446 418460409 5% 5% Internal fund
transformation project and bank loan
Dongguan PV B Building
450MWPERC battery 100990000 204801994 30541 204832535 1% Internal fund
technology upgrade projec and bank loan
Anhui Lightweight
&high-permeability panel
Internal fund
for solar energy 3739020000 15039984 129703239 144743223 4% 20%
and bank loan
equipment manufacturing
base project
Zhaoqing CSG high-grade
Internal fund
energy saving glass 500000000 47026508 81211571 2508093 1261508 124468478 26% 73% 1120976 1030409 3.80%
and bank loan
production line project
Dongguan solar light and 76140000 56711889 15675862 72387751 27% 51% Internal fund
high-efficiency and bank loan
double-glass processing
production line
construction project
Tianjin Energy-saving
Coating Production Line Internal fund
114945000 67770962 67770962 59% 70% 379912 379912 4.00%
Purchase and Upgrade and bank loan
Project
Yichang display device
Internal fund
company flat panel 1970000000 44013628 17117774 1283676 59847726 91% 93% 11560142
and bank loan
display project
LED Sapphire Substrate Internal fund
35000000 32420412 32420412 93% 93% 4650543
Project and bank loan
Wujiang
Architectural Glass newly
Internal fund
building intelligent 179140610 760313 24302355 25062668 14% 20%
and bank loan
manufacturing plant
construction project
Anhui Fengyang quartz Internal fund
739990000 1775552 12086138 13861690 2% 8%
sand project and bank loan
Zhaoqing CSG high-grade
automobile glass 609830000 3403090 8791363 12194453 2% 9% Internal fund
production line project and bank loan
Hebei Panel Glass
ultra-thin electronic glass Internal fund
284964800 9568451 374664 6637 9936478 4% 4%
Line II construction and bank loan
project
Wujiang Float
Lightweight and
High-efficiency Internal fund
158850000 3572478 5150233 8722711 6% 6% 6021 6021 4.00%
double-glass processing and bank loan
production line
construction project
Xianning CSG 1200T/D
Photovoltaic Packaging Internal fund
858090000 3369681 3369681
Material Production Line and bank loan
Project
Internal fund
Others 948248194 163973037 77525057 44601180 597229 196299685 295421
and bank loan
Total 10582418604 2532587870 447716886 48399586 1858737 2930046433 18013015 1416342 --
13. Right of use assets
Unit: RMB
Item Land-use right Total
I. Original book value:
1. Opening balance 13094935 13094935
2. Increased amount of the period 129600 129600
3. Decreased amount of the period
4. Closing balance 13224535 13224535
II. Accumulative depreciation
1. Opening balance 3454177 3454177
2. Increased amount of the period
(1) Provision 471792 471792
3. Decreased amount of the period
(1) Disposal
4. Closing balance 3925969 3925969
III. Depreciation reserves
1. Opening balance
2. Increased amount of the period
(1) Provision
3. Decreased amount of the period
(1) Disposal
4. Closing balance
IV. Book value
1. Closing book value 9298566 9298566
2. Opening book value 9640758 9640758
14. Intangible assets
(1) Particulars of intangible assets
Unit: RMB
Item Land use rights Patents Exploitation rights Others Total
I. Original book value:
1. Opening balance 1104513769 412396040 4572365 41871072 1563353246
2. Increased amount of this
period
(1) Acquisition 60172600 1079386 1751880 63003866
(2) Internal R&D 1247970 1247970
3. Decreased amount of the
period
(1) Disposal 282878 282878
4. Closing balance 1164686369 413644010 5651751 43340074 1627322204
II.Accumulatedamortization
1. Opening balance 207220415 161295114 4462351 37446631 410424511
2. Increased amount of this
period
(1) Provision 12033620 17637790 25010 1686725 31383145
3. Decreased amount of the
period
(1) Disposal 282878 282878
4. Closing balance 219254035 178932904 4487361 38850478 441524778
III. Impairment provision
1. Opening balance 13201347 9133 13210480
2. Closing balance 13201347 9133 13210480
IV. Book value
1. Closing book value 945432334 221509759 1164390 4480463 1172586946
2. Opening book value 897293354 237899579 110014 4415308 1139718255
At the end of the period the intangible assets arising from internal research and development accounted for 19.83% of total of
intangible assets.
(2) Land use rights without property right certificates
Unit: RMB
Item Book value Reason for not yet obtaining certificates of title
Land use rights 4616821
As at June 30 2021 ownership certificates of land use right (“Land ownership Certificates”) for certain land use rights of the Group
with carrying amounts of approximately RMB 4616821 (cost: RMB 6586712) had not yet been obtained by the Group (as at
December 31 2020 carrying amount: RMB 4739196 cost: RMB 6586712). The Company’s management is 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.15. Development expenditure
Unit: RMB
The increased amount in
The decrease amount in the period
Opening the period Closing
Item
balance Internal development Recognized as intangible Transfer to current profit balance
expenditure assets and loss
Development
49153407 10250159 1247970 58155596
expenditure
Total 49153407 10250159 1247970 58155596
During Jan.-Jun. 2021 the total amount of research and development expenditures of the Group was RMB 235137041 (Jan.-Jun.2020: RMB 169270099) including RMB 224886882 (Jan.-Jun. 2020: RMB 145063647) recorded in income statement for
current period and the research and development expenditure with the amount of RMB 1247970 recognized as intangible assets for
the current period (Jan.-Jun. 2020: 134119). At June 30 2021 the intangible assets arising from internal research and development
accounted for 19.83% of total of intangible assets (31 December 2020: 20.56%).16. Goodwill
(1) Book value of goodwill
Unit: RMB
Name of the companies or goodwill item Opening balance Increased this term Decreased this term Closing balance
Tianjin CSG Energy-Saving Glass Co. Ltd. 3039946 3039946
Xianning CSG Photoelectric 4857406 4857406
Shenzhen CSG Display 389494804 389494804
Total 397392156 397392156
(2) Goodwill impairment provision
Unit: RMB
Name of the companies or Increased this term Decreased this term
Opening balance Closing balance
goodwill item Provision Disposal
Shenzhen CSG Displayer 164016463 164016463
Total 164016463 164016463
17. Long-term prepaid expenses
Unit: RMB
Item Opening balance Increased this term Amortized this term Other decreases Closing balance
Expenses to be
741179 163410 577769
amortized
Total 741179 163410 577769
18. Deferred income tax assets/deferred income tax liabilities
(1) Unoffset deferred income tax assets
Unit: RMB
Closing balance Opening balance
Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference assets difference assets
Provision for asset
757515769 116072384 736119311 113183894
impairments
Deductible loss 510469789 89552256 509689080 86461610
Government grants 170555440 26512545 175322807 27297200
Accrued expenses 6414235 962135 7184597 1077690
Depreciation of fixed
18044503 2706675 18804540 2822699
assets
Total 1462999736 235805995 1447120335 230843093
(2)Unoffset deferred income tax liabilities
Unit: RMB
Closing balance Opening balance
Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference liabilities difference liabilities
Depreciation of fixed assets 537687395 82452734 540143676 82946754
Changes in fair value of
370245713 55536857 370245713 55536857
investment property
Total 907933108 137989591 910389389 138483611
(3) The net balances of deferred tax assets or liabilities
Unit: RMB
Off-set amount of Closing balance of Off-set amount of Opening balance of
deferred income tax deferred income tax deferred income tax deferred income tax
Item
assets and liabilitiesat assetsor liabilities after assets and liabilities at assetsor liabilities after
the period-end off-set the period-beginning off-set
Deferred tax assets 32250799 203555196 35863679 194979414
Deferred tax liabilities 32250799 105738792 35863679 102619932
(4) Details of unrecognized deferred income tax assets
Unit: RMB
Item Closing balance Opening balance
Deductible losses 1602170145 1458462329
Total 1602170145 1458462329
(5) Deductible losses of unrecognized deferred income tax assets will due the following years
Unit: RMB
Year Closing balance Opening balance Note
2021 年 111625585 111625585
2022 年 83303539 83303539
2023 年 146238837 146238837
2024 年 178208832 178208832
2025 年 939085536 939085536
2026 年 143707816
Total 1602170145 1458462329 --
19. Other non-current assets
Unit: RMB
Item Closing balance Opening balance
Prepayment of engineering equipment 365485544 186849445
Fixed deposit 80000000
Prepayment for lease of land use rights 6510000 6510000
Total 451995544 193359445
20. Short-term loans
(1)Short-term loan classification
Unit: RMB
Item Closing balance Opening balance
Mortgage loan 5000000
Guaranteed loan 198560100 298095571
Unsecured loan 114000000 49800000
Total 312560100 352895571
(i)On June 30 2021 the Company provided guarantees for short-term loans of RMB 198560100 (31 December 2020: RMB
298095571).(ii) On June 30 2021 the interest rate range of short-term loans is 2.50% - 4.05% (December 31 2020: 2.05% - 4.20%).21. Notes payable
Unit: RMB
Category Closing balance Opening balance
Trade acceptance notes 32197770 9903213
Bank acceptance notes 272512582 134947979
Total 304710352 144851192
22. Accounts payable
(1) List of accounts payable
Unit: RMB
Item Closing balance Opening balance
Materials payable 730485919 755509571
Equipment payable 190108674 209292511
Construction expenses payable 196954273 146976774
Freight payable 66600072 70011499
Utilities payable 48346975 49441605
Others 9652096 6601091
Total 1242148009 1237833051
(2) Significant accounts payable due for over one year
Unit: RMB
Item Closing balance Unpaid reason
The final account of the project has not been
Construction and equipments 133063987
completed so it has not been settled.Total 133063987 --
23. Contract liabilities
Unit: RMB
Item Closing balance Opening balance
Contract liabilities 273225477 296776624
Total 273225477 296776624
24. Employee benefits payable
(1) List of employee benefits payable
Unit: RMB
Item Opening balance Increased this term Decreased this term Closing balance
I. Short-term employee benefits
342315790 810446979 897705163 255057606
payable
II. Welfare after departure-
461 55809127 55797859 11729
defined contribution plans
III.Termination benefits 35915 2066360 1764646 337629
Total 342352166 868322466 955267668 255406964
(2) List of short-term employee benefits
Unit: RMB
Item Opening balance Increased this term Decreased this term Closing balance
1. Wages and salaries bonuses
322617585 757598479 847523138 232692926
allowances and subsidies
2. Social security contributions 5288 24400419 24400158 5549
Including: Medical insurance 4957 21468251 21468267 4941
Work injury insurance 1589916 1589639 277
Maternity insurance 331 1342252 1342252 331
3. Housing funds 1018185 19276472 18653235 1641422
4.Labour union funds and employee
18674732 9171609 7128632 20717709
education funds
Total 342315790 810446979 897705163 255057606
(3) List of defined contribution plans
Unit: RMB
Item Opening balance Increased this term Decreased this term Closing balance
1. Basic pensions 444 53953257 53942256 11445
2. Unemployment insurance 17 1855870 1855603 284
Total 461 55809127 55797859 11729
25. Tax payable
Unit: RMB
Item Closing balance Opening balance
Value-added-tax payable 58200217 82055265
Corporate income tax payable 138196034 90295709
Individual income tax payable 9064353 3600603
City maintenance and construction tax 3905435 6414982
Property tax 8932017 3937112
Education surcharge 3307609 4762191
Environmental tax payable 1720080 1901375
Others 6041950 1953834
Total 229367695 194921071
26. Other payables
Unit: RMB
Item Closing balance Opening balance
Interest payable 34601072 132133902
Other payables 198673151 155199090
Total 233274223 287332992
(1) Interest payable
Unit: RMB
Item Closing balance Opening balance
Interest on long-term loans with interest
paid by installments and principal repaid at 2006273 1590247
maturity
Interest payable for short-term borrowings 336734 330034
Interest payable for medium-term notes 37955556
Interest payable for corporate bonds 32258065 92258065
Total 34601072 132133902
(2) Other payables
1) Listing other payables by nature of the payment
Unit: RMB
Item Closing balance Opening balance
Guarantee deposits received from111550329
construction contractors 77932889
Accrued cost of sales(i) 47553186 38943663
Payable for contracted labour costs 18605763 16548708
Temporary receipts 10946011 10298957
Deposit for disabled 6559198 4680725
Others 3458664 6794148
Total 198673151 155199090
(i) The project mainly includes various expenses that have occurred but have not been invoiced on June 30 2021 including canteen
fees consulting service fees etc.27. Non-current liabilities due within one year
Unit: RMB
Item Closing balance Opening balance
Long-term borrowings due within 1 year 135934639 127531709
Medium term notes due within 1 year 800000000
Total 135934639 927531709
28. Other current liabilities
Unit: RMB
Item Closing balance Opening balance
Output tax to be transferred 32029042 34286292
Others 300000 300000
Total 32329042 34586292
29. Long-term borrowings
(1) Long-term loan classification
Unit: RMB
Item Closing balance Opening balance
Guaranteed 298057017 153253983
Unsecured 892500000 700000000
Total 1190557017 853253983
As at 30 June 2021 the interest of long-term borrowings varied from 3.40%-4.60% (31 December 2020: 3.40%-4.60%).30. Bonds payable
(1) Bonds payable
Unit: RMB
Item Closing balance Opening balance
Bonds payable 1995284179 1994020348
Total 1995284179 1994020348
(2) Increase or decrease of bonds payable (excluding preferred shares perpetual bonds and other financial
instruments classified as financial liabilities)
Unit: RMB
Amortizatio
Issue in Interest
Face Amount of n of Current Closing
Name Issue date Term Opening balance the accrued at
value issue premium repayment balance
period face value
and discount
20 2020-3-243
CSG 100 to 2000000000 1994020348 60000000 4715821 1995284179
years
01 2020-3-25
Total -- -- -- 2000000000 1994020348 60000000 4715821 1995284179
In March 2020 with the approval of China Securities Regulatory Commission the company was approved to publicly issue 2020
corporate bonds (phase I) to qualified investors with a face value of RMB 100 an issue amount of RMB 2 billion a term of 3 years
(annual interest payment and principal repayment at maturity) and a coupon rate of 6%; The issuance date is from March 24 2020 to
March 25 2020 and the value date is March 25 2020.31. Deferred income
Unit: RMB
Increase in current decrease in current
Item Opening balance Closing balance Reason
period period
Government grants 498056081 92718500 16158100 574616481
Total 498056081 92718500 16158100 574616481 --
Projects involving government subsidies:
Unit: RMB
Increase in current Account to other in Related to assets or
Item in debt Opening balance Closing balance
period come in this period income
Tianjin CSG Golden
43592443 Assets related
Sun Project (i) 1687446 41904997
Dongguan CSG
Golden Sun Project Assets related
(ii) 35075250 1375500 33699750
Hebei CSG Golden
Assets related
Sun Project (iii) 35750000 1375000 34375000
Xianning CSG
Golden Sun Project Assets related
(iv) 38891417 1515250 37376167
Infrastructure
compensation for
Assets related
Wujiang CSG Glass
Co. Ltd (v) 27504284 2020769 25483515
Qingyuan
Energy-saving Assets related
project (vi) 14176616 977317 13199299
Yichang Silicon
products project Assets related
(vii) 13359375 1406250 11953125
Yichang CSG
silicon slice
Assets related
auxiliary project
(viii) 18456685 744527 17712158
Sichuan
energy-saving glass Assets related
project (ix) 5513400 827010 4686390
Group coating film
experimental project Assets related
(x) 2401800 499500 1902300
Yichang high purity
silicon material Assets related
project (xi) 2720797 151588 2569209
Yichang
semiconductor
Assets related
silicon material
project (xii) 2866666 2866666
Yichang CSG 43233170 1333907 41899263 Assets related
Display project
(xiii)
Xianning
Photoelectric project Assets related
(xiv) 6760000 260000 6500000
Shenzhen medical
equipment subsidy 582000 Assets related
project(xv) 8342000 7760000
Group talent fund
Income related
project (xvi) 171000000 171000000
Zhaoqing energy
saving industry
92718500 92718500 Income related
support fund
project(xvii)
Assets and income
Others 28412178 1402036 27010142
related
Total 498056081 92718500 16158100 574616481
Other statement:
(i)The allowance was granted by Tianjin Municipal Government. The allowance was used for establishing PV power station by
Tianjin CSG Energy-Saving Glass Co. Ltd. The facilities belonged to Tianjin CSG upon completion. The allowance will be credited
to income statement in 20 years the useful life of the PV power station.(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.(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 appropriated by Guangdong Province was a pilot project for strategic emerging industry clusters development
which 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 Yichang CSG polysilicon 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 years according 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 project is amortized and included in profit and loss according to the expected service life of 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 Polysilicon “Hubei semiconductor 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
line which 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.(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 which is working at Yichang or plane to
introduction fund of RMB171 million was set up as a special fund for talent introduction and housing resettlement.(xvii) It is the financial support fund for Provincial Industrial Co Construction in 2021 allocated by the Finance Bureau of Zhaoqing
high tech Industrial Development Zone for Zhaoqing energy conservation company which is used for enterprise development
production and operation.32. Share Capital
Unit: RMB
Changed in the report period(+-)
Opening Closing
Transferred
balance New issues Bonusissue Others Sub-total balance
fromreserves
Total of capital
3070692107 3070692107
shares
33. Capital surplus
Unit: RMB
Item Opening balance Increased this term Decreased this term Closing balance
Capital premium (share premium) 655424260 655424260
Other capital surplus -58427175 -58427175
Total 596997085 596997085
34. Other comprehensive income
Unit: RMB
Occuring in current period
Less: Amount
Less: Amount
transferred
transferred into
into profit and
retained
loss in the After-tax
Opening Amount earnings in the Less: After-tax Closing
Item current period attribute to
balance incurred current period income attribute to balance
that minority
before that recognized tax the parent
recognized shareholde
income tax into other expense company
into other r
comprehensive
comprehensiv
income in prior
e income in
period
prior period
I. Other comprehensive
income items which can
not be reclassified to
profit or loss
II. Other comprehensive
income items which will
161816819 1322491 1322491 163139310
be reclassified to profit
or loss
Differences on
translation of foreign
-1884978 1322491 1322491 -562487
currency financial
statements
Finance incentives for
energy and technical 2550000 2550000
transformation
Income from conversion
of self use real estate
161151797 161151797
and land use right into
investment real estate
Total of other
161816819 1322491 1322491 163139310
comprehensive income
35. Special reserves
Unit: RMB
Item Opening balance Increased this term Decreased this term Closing balance
Safety production cost 10269002 1166410 9102592
Total 10269002 1166410 9102592
36. Surplus reserves
Unit: RMB
Item Beginning of term Increased this term Decreased this term End of term
Statutory surplus reserve 909095854 909095854
Discretionary surplus reserve 127852568 127852568
Total 1036948422 1036948422
37. Undistributed profits
Unit: RMB
Item The current period The same period of last year
Retained earnings at the end of the previous term before adjustment 5336266412 4859600841
Retained earnings at the beginning of this term after adjustment 5336266412 4859600841
Add: net profits belonging to equity holders of the Company 1352517465 391466723
Less:Appropriations to statutory surplus reserve
Common stock dividends payable 307069211 211962885
Retained earnings in the end 6381714666 5039104679
38. Revenue and cost of sales
Unit: RMB
Occurred in current term Occurred in previous term
Item
Revenue Cost Revenue Cost
Revenue from main
6549257796 4117364759 4384952565 3156673458
operations
Revenue from other
65544742 9262386 39268784 2893573
operations
Total 6614802538 4126627145 4424221349 3159567031
39. Tax and surcharge
Unit: RMB
Item Occurred in current term Occurred in previous term
City maintenance and construction tax 20244886 13417822
Educational surcharge 17918346 11582943
Housing property tax 16177724 14336199
Land use rights 11475052 6477593
Stamp tax 3873467 2314485
Environmental protection tax 3569685 3590774
Others 706894 618576
Total 73966054 52338392
40. Sales expenses
Unit: RMB
Item Occurred in current term Occurred in previous term
Freight expenses 5430828 68005806
Employee benefits 82609837 65900124
Entertainment expenses 10768857 5966150
Business travel expenses 4144027 2646504
Vehicle use fee 3994805 3267556
Rental expenses 3608518 3280632
Depreciation expenses 386840 464897
Others 14382303 12107865
Total 125326015 161639534
41. Administrative expenses
Unit: RMB
Item Occurred in current term Occurred in previous term
Employee benefits 205775425 154039065
Depreciation expenses 30558014 30983197
Amortization of intangible assets 31383145 26914457
General office expenses 14283686 11476149
Labour union funds 9143124 7058240
Entertainment fees 8583533 4133275
Business travel expenses 3293171 1800471
Utility fees 2661302 2887017
Canteen fee 3737420 3409550
Vehicle use fee 2818991 2011558
Consulting advisers 7243698 7668560
Factory shutdown losses 42910507
Others 35433195 22127361
Total 354914704 317419407
42. Research and development expenses
Unit: RMB
Item Occurred in current term Occurred in previous term
Research and development expenses 224886882 145063647
Total 224886882 145063647
43. Finance expenses
Unit: RMB
Item Occurred in current term Occurred in previous term
Interest on borrowings 103386761 157133164
Less: Capitalised interest 1416342 4954200
Interest expenses 101970419 152178964
Less: Interest income 20024847 24931363
Exchange losses 3871530 -499379
Others 1182897 4994975
Total 86999999 131743197
44. Other income
Unit: RMB
Source of other gains Occurred in current term Occurred in previous term
Government subsidy amortization 16158100 17118391
Industry support funds 1782700 3698000
Government incentive funds 11750470 13973402
Research grants 2129180 5613820
Others 4733354 7605713
Total 36553804 48009326
45. Investment income
Unit: RMB
Item Occurred in current term Occurred in previous term
Structural deposit income 3075863
Fixed deposit income 596467
Total 3672330
46. Credit impairment losses
Unit: RMB
Item Occurred in current term Occurred in previous term
Losses on bad debts of other receivables 110593 4451
Losses on bad debts of accounts receivable 2413455 2957469
Total 2524048 2961920
47. Asset impairment losses
Unit: RMB
Item Occurred in current term Occurred in previous term
Decline in the value of inventories -154053
Impairment loss of fixed assets 26753082
Total 26753082 -154053
48. Asset disposal income
Unit: RMB
Source of income from assets disposal Occurred in current term Occurred in previous term
Gains and losses on disposal of non current assets 137638 -342005
Total 137638 -342005
49. Non-operating income
Unit: RMB
Amount of non-recurring gain and
Item Occurred in current term Occurred in previous term
loss included in the report period
Compensation income 2504317 580519 2504317
Amounts unable to pay 2998725 876291 2998725
Government subsidy 100000
Others 2048756 661321 2048756
Total 7551798 2218131 7551798
50. Non-operating expenses
Unit: RMB
Amount of non-recurring gain and loss
Item Occurred in current term Occurred in previous term
included in the report period
Donation 265306 17496945 265306
Compensation 20600
Refund 15028336 15028336
Others 1168343 18008 1168343
Total 16461985 17535553 16461985
51. Income tax expenses
(1) List of income tax expenses
Unit: RMB
Item Occurred in current term Occurred in previous term
Current income tax expenses 260737212 94992504
Deferred income tax expenses - 5456922 -10877296
Total 255280290 84115208
(2) Adjustment process of accounting profit and income tax expense
Unit: RMB
Item Occurred in current term
Total profit 1624258194
Current income tax expense accounted by tax and relevant regulations 233923611
Costs expenses and losses not deductible for tax purposes 495218
Impact on the use of deductible loss of deferred income tax assets not
-206530
recognized in previous period
Influence of deductible temporary difference or deductible losses of34517081
unrecognized deferred income tax assets
Balance the previous year income tax adjustment - 6950609
Impact of tax incentives - 6498481
Income tax expenses 255280290
52. Other comprehensive income
See the note for details.53. Items of the cash flow statement
(1) Other cash received related to operating activities
Unit: RMB
Item Occurred in current term Occurred in previous term
Interest income 20024847 24931363
Government grant 113114204 33990935
Others 45686124 10774006
Total 178825175 69696304
(2) Other cash paid related to operating activities
Unit: RMB
Item Occurred in current term Occurred in previous term
Freight expenses 7337545 74815811
General office expenses 21928236 17610516
Business travel expenses 9925103 6371021
Entertainment fees 20105592 10976482
Vehicle use fee 6874692 5738312
Maintenance fee 10878076 10630309
Rental expenses 11665203 7252265
Insurance 7889601 9758524
Commission 1182897 4994975
Consulting fees 5050890 5151892
Others 143938799 126573611
Total 246776634 279873718
(3) Other cash received related to investment activities
Unit: RMB
Item Occurred in current term Occurred in previous term
Deposit 26124986 198380
Income from trial production of construction in progress 6011365 27868724
Entrusted Loan 300000000
Total 32136351 328067104
(4) Other cash paid related to investment activities
Unit: RMB
Item Occurred in current term Occurred in previous term
Trial production expenditure in construction 6911853 21848237
Total 6911853 21848237
(5) Other cash received related to financing activities
Unit: RMB
Item Occurred in current term Occurred in previous term
Deposit 298227
Total 298227
(6) Other cash paid related to financing activities
Unit: RMB
Item Occurred in current term Occurred in previous term
Equity incentive repurchase payment 122445171
Payment for deposit and margin 3050301
Repay financing leases 357808728
Other 390507 53939
Total 390507 483358139
54. Supplement information to the cash flow statement
(1) Supplement information to the cash flow statement
Unit: RMB
SupplementaryInfo. Amount of this term Amount of last term
1. Reconciliation from net profit to cash flows from operating activities -- --
Net profit 1368977904 401876965
Add: Provisions for assets impairment 26753082 -154053
Credit impairment loss 2524048 2961920
Depreciation of fixed assets 448555136 430017802
Depreciation of right-of-use assets 471792
Amortization of intangible assets 31383145 26914457
Amortization of long-term prepaid expenses 163410 821736
Losses on disposal of fixed assets intangible assets and other
-137638 342005long-term assets (“- “for gains)Finance expenses (“- “for gains) 101970419 152178964Investment loss (“- “for gains) -3672330Decrease in deferred tax assets (“- “for increase) -8575782 -13637865Increase of deferred income tax liability (“- “for decrease) 3118860 2760569Decrease of inventory (“- “for increase) -236251630 -220040002Decrease of operational receivable items (“- “for increase) -260405962 -154063031Increase of operational payable items (“- “for decrease) 224537331 150101105Others -1166410 -436183
Net cash flow generated by business operation 1698245375 779644389
2. Net change of cash and cash equivalents -- --
Balance of cash at period end 1647672831 3071655971
Less: Initial balance of cash 2124028196 1831835030
Net increasing of cash and cash equivalents -476355365 1239820941
(2) Formation of cash and cash equivalents
Unit: RMB
Item Closing balance Opening balance
I. Cash 1647672831 2124028196
Incl: Cash on hand 2899 2725
Bank deposits that can be readily drawn on demand 1457598945 1463954484
Other cash balances that can be readily drawn on demand 190070987 660070987
II. Balance of cash and cash equivalents at the end of the period 1647672831 2124028196
55. Assets with restricted ownership or use rights
Unit: RMB
Item Ending book value Reason for restriction
Monetary assets 1760707 Restricted deposit flow
Fixed assets 17872800 Restricted mortgage loan
Total 19633507 --
56. Foreign currency monetary items
(1) Foreign currency monetary items
Unit: RMB
Closing balance of foreign Closing
Item Exchange rate
currency balance convert to RMB
Cash at bank and on hand -- -- 42687473
Incl: HKD 5227274 0.8321 4349614
USD 5827618 6.4601 37646995
EUR 19 7.6862 146
JPY 11761130 0.0584 686850
AUD 797 4.8528 3868
Accounts receivable 78787097
Incl: HKD 1326139 0.8321 1103480
USD 11031918 6.4601 71267293
EUR 834785 7.6862 6416324
Short-term borrowings 646
Incl: USD 100 6.4601 646
Accounts payable 35750978
Incl: HKD 112037 0.8321 93226
USD 5224898 6.4601 33753364
EUR 222216 7.6862 1707997
JPY 3362860 0.0584 196391
Contract liabilities 26826039
Incl: HKD 6217181 0.8321 5173316
USD 3351614 6.4601 21651762
EUR 125 7.6862 961
57. Government subsidy
(1) Basic situation of government subsidies
Unit: RMB
Amount included in current
Type Amount Presentation project
profit and loss
Government subsidy amortization 16158100 Other income 16158100
Other government subsidies 92718500 Deferred income
Other government subsidies 20395704 Other income 20395704
Total 129272304 36553804
(2) Return of government subsidies
√Applicable □ Not applicable
Unit: RMB
Item Amount Reason
TCO glass production base industrialization project 15028336
VIII. The changes of consolidation scope
1. Changes in scope of consolidation for other reasons
On April 19 2021 the Group set up a subsidiary Xi'an CSG Energy-saving Glass Technology Co. Ltd. (hereinafter referred to as
"Xi'an Energy-saving Company"). As of June 30 2021 the Group had not contributed yet.The Group owns 100% of its equity.On June 25 2021 the Group established Anhui CSG Silicon Valley Mingdu Mining Development Co. Ltd. (referred to as "Anhui
Mining Company"). As of June 30 2021 the Group had not contributed yet.The Group owns 60% of its equity.IX. Interest in other entities
1. Interest in subsidiary
(1) Composition of the Group
Major business Place of Shareholding (%) Way of
Name of subsidiary Scope of business
location registration Direct Indirect acquicition
Development production and
Chengdu CSG Chengdu PRC Chengdu PRC 75% 25% Establishment
sales of special glass
Development production and
Sichuan CSG Energy
Chengdu PRC Chengdu PRC sales of special glass and 75% 25% Split-off
Conservation
processing of glass
Tianjin Energy Development production and
Tianjin PRC Tianjin PRC 75% 25% Establishment
Conservation sales of special glass
Dongguan CSG
Dongguan PRC Dongguan PRC Intensive processing of glass 75% 25% Establishment
Engineering
Production and sales of solar
Dongguan CSG Solar Dongguan PRC Dongguan PRC 75% 25% Establishment
glass
Production and sales of hi-tech
Dongguan CSG PV-tech Dongguan PRC Dongguan PRC 100% Establishment
green battery and components
Yichang CSG Production and sales of
Yichang PRC Yichang PRC 75% 25% Establishment
Polysilicon high-purity silicon materials
Wujiang CSG
Wujiang PRC Wujiang PRC Intensive processing of glass 75% 25% Establishment
Engineering
Production and sales of special
Hebei CSG Yongqing PRC Yongqing PRC 75% 25% Establishment
glass
Production and sales of special
Wujiang CSG Wujiang PRC Wujiang PRC 100% Establishment
glass
China Southern Glass Hong Kong Hong Kong
Investment holding 100% Establishment
(Hong Kong) PRC PRC
Production and sales of
Hebei Shichuang Yongqing PRC Yongqing PRC 100% Establishment
ultra-thin electronic glass
Production and sales of special
Xianning CSG Xianning PRC Xianning PRC 75% 25% Establishment
glass
Xianning CSG
Xianning PRC Xianning PRC Intensive processing of glass 75% 25% Split-off
Energy-Saving
Qingyuan CSG Production and sales of
Qingyuan PRC Qingyuan PRC 100% Establishment
Energy-Saving ultra-thin electronic glass
Shenzhen CSG
Financial Leasing Co. Shenzhen PRC Shenzhen PRC Finance leasing etc. 75% 25% Establishment
Ltd.Jiangyou CSG Mining Production and sales of silica
Jiangyou PRC Jiangyou PRC 100% Establishment
Development Co. Ltd. and its by-products
Shenzhen CSG PV Investment management of
Shenzhen PRC Shenzhen PRC 100% Establishment
Energy Co. Ltd. photovoltaic plant
Qingyuan CSG New Clean energy development
Qingyuan PRC Qingyuan PRC 100% Establishment
Energy Co. Ltd. photovoltaic power generation
Suzhou CSG PV-tech Clean energy development
Wujiang PRC Wujiang PRC 100% Establishment
Co. Ltd. photovoltaic power generation
Wujiang CSG New Clean energy development
Wujiang PRC Wujiang PRC 100% Establishment
Energy Co. Ltd. photovoltaic power generation
Yichang CSG New Clean energy development
Yichang PRC Yichang PRC 100% Establishment
Energy Co. Ltd photovoltaic power generation
Production and sales of display
Shenzhen CSG Display Shenzhen PRC Shenzhen PRC 60.8% Acquisition
component products
Xianning CSG Photoelectric glass and high
Xianning PRC Xianning PRC 100% Acquisition
Photoelectric aluminium glass
Zhaoqing Production and sales of special
Zhaoqing PRC Zhaoqing PRC 100% Establishment
Energy-SavingGlass glass
Zhaoqing Automobile Production and sales of special
Zhaoqing PRC Zhaoqing PRC 100% Establishment
Glass glass
Develop manufacture and sell
Anhui CSG New key materials or complete sets
Fengyang PRC Fengyang PRC 100% Establishment
Energy Materials of equipment for new energy
power generation
Anhui CSG New Quartz Quartzite mining processing
Fengyang PRC Fengyang PRC 100% Establishment
material purification sales
Anhui Mining Fengyang PRC Fengyang PRC Mining of mineral resources 60% Establishment
Production and sales of special
Xi'an Energy-saving Xi'an PRC Xi'an PRC 55% 45% Establishment
glass
(2)Important non-wholly owned subsidiary
Unit: RMB
Shareholding of Total profit or loss attributable to Dividends distributed to Minority interest
Subsidiaries minority minority shareholders for the year minority interests for the as at 30 June
shareholders ended 30 June 2021 year ended 30 June 2021 2021
Shenzhen CSG Display 39.20% 15671487 388306164
(3) Major financial information of important non-wholly owned subsidiaries
Unit: RMB
Name of Closing balance
Subsidiary Current assets Non-current assets Total assets Current liabilities Non-current liabilities Total liabilities
245824959 1392976463 1638801422 535730360 56375022 592105382
Shenzhen CSG Opening balance
Display
Current assets Non-current assets Total assets Current liabilities Non-current liabilities Total liabilities170949238
304147421 1405344962 3 630254366 81201074 711455440
Unit: RMB
Occurred in current term Occurred in previous term
Cash flows Cash flows
Name of Total Total
from from
Subsidiary Revenue Net profit comprehensive Revenue Net profit comprehensive
operating operating
income income
activities activities
Shenzhen
378092939 46313955 46313955 57269209 212884437 25080790 25080790 61513296
CSG Display
2. Interests in joint ventures
Relationship
Registered capital
Company Name Date of establishment Equity ratio with the
(RMB 0000)
company
Yichang Nanxing Automotive Electronics
October 13 2020 9000 30.40% Joint venture
Co. Ltd.Yichang Rongsheng New Material Co. Ltd. October 19 2020 500 39% Joint venture
As of June 30 2021 the Group had not actually injected capital into the above associated enterprises.X. Risk related to financial instrument
The Group's activities expose it to a variety of financial risks: market risk (primarily currency risk and interest rate risk) credit risk and
liquidity risk. The Group's overall risk management programme focuses on the unpredictability of financial markets and seeks to
minimise 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. However some of the export business is settled in foreign currency. Besides 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 HKD. The Group monitors the scale of foreign currency transactions foreign currency assets and liabilities and
adjusts settlement currency of export business to furthest reduce the currency risk.As at 30 June 2021 the carrying amounts in RMB equivalent of the Group’s assets and liabilities denominated in foreign currencies
are summarized below:
30 June 2021
USD HKD Others Total
Financial assets denominated in foreign
currency
Cash at bank and on hand 37646995 4349614 690864 42687473
Receivables 71267293 1103480 6416324 78787097
Total 108914288 5453094 7107188 121474570
Financial liabilities denominated in foreign
currency
Short-term borrowings 646 646
Payables 33753364 93226 1904388 35750978
Total 33754010 93226 1904388 35751624
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
Total 100932763 7390718 7808810 116132291
Financial liabilities denominated in foreign
currency
Short-term borrowings 63120000 63120000
Payables 47632226 3868806 4443735 55944767
Total 47632226 66988806 4443735 119064767
As at 30 June 2021 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 6388624 lower/higher (31 December 2020:
approximately RMB 4530546 lower/higher) for various financial assets and liabilities denominated in USD.Other changes in exchange rate had no significant influence on the Group's operating activities.(b) Interest rate risk
The Group's interest rate risk arises from long-term interestbearing borrowings 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 30 June 2021 the Group’s long-term interest-bearing debt at variable
rates and fixed rates as illustrated below:
Type 30 June 2021 31 December 2020
Debt at fixed rates
2357285920 2105274331
Debt at variable rates
828555276 742000000
Total 3185841196 2847274331
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.
(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.The management intends to take the following measures to ensure that the group's liquidity risk is within a controllable range.(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 monitor the payment of construction expenditure in terms of payment time and amount.The financial liabilities of the Group at the balance sheet date are analysed by their maturity date below at their undiscounted
contractual cash as follows:
30 June 2021
Within 1 year 1 to 2 years 2 to 5 years Over 5 years Total
Short-term borrowings 318162276 318162276
Notes payable 304710352 304710352
Accounts payable 1242148009 1242148009
Other payables 233274223 233274223
Other current liabilities 32329042 32329042
Non-current liabilities due within
138831418 138831418
one year
Long-term borrowings 46088172 715895293 526921195 1288904660
Bonds payable 120000000 2087741935 2207741935
Total 2435543492 2803637228 526921195 5766101915
31 December 2020
Within 1 year 1 to 2 years 2 to 5 years 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
951180309 951180309
one year
Long-term borrowings 32663037 731295181 154771873 918730091
Bonds payable 120000000 120000000 2027741935 2267741935
Total 3166319195 851295181 2182513808 6200128184
XI. Disclosure of fair value
1. The ending fair value of assets and liabilities measured at fair value
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 June30 2021 the Group’s using assets and liabilities measured at fair value are listed three levels as followings:
30 June 2021
Level 1 Level 2 Level 3 Total
Measured at fair value through other comprehensive income
Receivables Financing 444025966 444025966
Investment property 383084500 383084500
Total 827110466 827110466
(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.30 June 2021 31 December 2020
Carrying amount Fair value Carrying amount Fair value
Financial liabilities
Medium term notes 800000000 803364000
Corporate bonds 1995284179 2002974000 1994020348 1987041277
Total 1995284179 2002974000 2794020348 2790405277
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 and corporate bonds belongs to Level 2.XII. Related party and related Transaction
1. Information of the parent company
The Company regards no entity as the parent company.2. Information of the subsidiaries
The general information and other related information of the subsidiaries are set out in attached note.3. Joint venture of the Company
The general information and other related information of joint ventures of the Company are set out in attached note.4. Other related parties
Other related parties Relationship between other related parties and the enterprise
Shenzhen Jushenghua Co. Ltd. Party acting in concert of the Company's largest shareholder
Foresea Life Insurance Co. Ltd. The Company's largest shareholder
Related parties of the person acting in concert of the Company's
Xinjiang Qianhai United Property Insurance Co. Ltd.largest shareholder
Related parties of the person acting in concert of the Company's
Suzhou Baoqi Logistics Co. Ltd.largest shareholder
5. Related party transactions
(1)Related transactions for the purchase and sale of goods provision and receipt of services
Purchase of goods / acceptance of labor services
Unit: RMB
Related party Related party transactions Amount incurred in the Amount incurred in the
current period previous period
Suzhou Baoqi Logistics Co. Ltd. Acceptance of labor services 5247713
Other related parties Purchase of goods 2428018
Total 7675731
Sales of goods / provision of labor services
Unit: RMB
Related party Related party transactions Amount incurred in the Amount incurred in the
current period previous period
Shenzhen Jushenghua Co. Ltd. Sales of goods 500 12118000
Other related parties Sales of goods 559600 6222400
Total 560100 18340400
Note: Other related parties include many companies and the amount is scattered so they are listed in combination.
(2) Purchase insurance
Unit: RMB
Related party Related party transactions Amount incurred in the Amount incurred in the
current period previous period
Foresea Life Insurance Co. Ltd. Purchase life insurance 1224197 1903094
Xinjiang Qianhai United Property Purchase auto insurance
84149 178374
Insurance Co. Ltd. and property insurance
Total 1308346 2081468
6. Accounts receivable and payable of related parties
(1) Receivables
Unit: RMB
Closing balance Opening balance
Related party
Book balance Bad debt provision Book balance Bad debt provision
Shenzhen Qianhai Liandongyun
54000 1080
Car Rental Co. Ltd.Other related parties 3600 72 223200 4464
Total 57600 1152 223200 4464
(2) Payables
Related party Closing book balance Opening book balance
Suzhou Baoqi Logistics Co. Ltd. 3166829 2617344
Total 3166829 2617344
7. Commitment of related parties
□ Applicable √ Not applicable
XIII. Commitments and contingencies
1. Significant commitments
(1) Capital 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:
Item 30 June 2021 31 December 2020
Buildings machinery and equipment 2183985008 552259223
(2) Operating lease commitments
The future minimum lease payments due under the signed irrevocable operating leases contracts are summarized as follows:
30 June 2021 31 December 2020
Within 1 year 6548841 7813728
1 to 2 years 1278028 541288
2 to 3 years 477816
Total 8304685 8355016
XIV. Other important matters
1. Segment information
(1) Definition foundation and accounting policy of segment
The Group's business activities are categorised by product and service as follows:
Glass segment engaged in production and sales of float glass and engineering glass and other building energy - saving materials the
silica for the production thereof etc.Solar energy segment engaged in manufacturing and sales of polysilicon and solar battery and applications etc.Electronic glass and display segment is responsible for production and sales of display components and special ultra-thin glass
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.
(2)Financial information of segment
Unit: RMB
Solar energyan
Electronic glass and
Item Glass industry d other industr Unallocated Elimination Total
display
ies
Revenue from
5322998745 878276652 413344356 182785 6614802538
external customers
Inter-segment
29578235 2611456 27109441 42470064 - 101769196
revenue
Interest income 1560878 381279 102225 17980465 20024847
Interest expenses 1043753 6590813 -8940 94371623 - 26830 101970419
Asset impairment
26753082 26753082
losses
Credit impairment
2546188 42069 -73682 9473 2524048
loss
Depreciation and
amortization 303315122 113734222 60032838 3491301 480573483
expenses
Total profit 1523058899 260561952 - 10198984 - 149163673 1624258194
Income tax expenses 221827221 35978878 - 826977 - 1698832 255280290
Net profit 1301231678 224583074 - 9372007 - 147464841 1368977904
Total assets 8877884979 3770358832 4067923562 1846934257 18563101630
Total liabilities 2542266265 668947088 271254713 3402684904 6885152970
Increase in non
499420148 34666192 8444928 129078 542660346
current assets
(3) Other statement
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 Jan.-Jun. 2021 Jan.-Jun. 2020
Mainland 5993997205 3862784501
Overseas 620805333 561436848
Total 6614802538 4424221349
Total non-current assets 30 June 2021 31 December 2020
Mainland 12946829944 12652550312
Hong Kong 12433408 12463605
Total 12959263352 12665013917
2. Other important transactions and matters that have an impact on investors' decisions
□Applicable √ Not applicable
XV. Notes to Financial Statements of the Parent Company
1. Other receivables
Unit: RMB
Item Ending book balance Beginning book balance
Interest receivable 112611
Dividends receivable 249087257
Other receivables 3402452584 3554821112
Total 3402565195 3803908369
(1) Interest receivable
1) Classification of interest receivable
Unit: RMB
Nature of accounts Ending book balance Beginning book balance
Interest receivable 112611
Total 112611
(2) Classification of dividends receivable
Project (or investee) Closing balance Opening balance
Dividends receivable from subsidiaries 249087257
Total 249087257
(3)Other receivables
1) Other accounts receivable classified by the nature of accounts
Unit: RMB
Nature of accounts Ending book balance Beginning book balance
Accounts receivable of related party 3230505957 3383284639
Others 177007810 176588183
Total 3407513767 3559872822
2) Withdrawal of bad debt provision
Unit: RMB
Phase I Phase II Phase III
Expected credit Expected credit loss for the Expected credit loss for the
Bad debt provision Total
losses in the next 12 entire duration (no credit entire duration (credit
months impairment occurred) impairment occurred)
Balance on1 January
3500744 1550966 50517102021
Balance on1 January
—— —— —— ——
2021 in current period
--Transferred to the
Phase II
--Transferred to the
Phase III
-- Transferred back to the
Phase II
-- Transferred back to the
Phase I
Withdrawal 9473 9473
Recovery
Write-off
Verification
Other changes
Balance on 30 June 2021 3510217 1550966 5061183
3) Disclosure by aging
Unit: RMB
Aging Closing balance
Within 1 year (including 1 year) 3232299734
Over 1 year 175214033
Total 3407513767
4) Provision for bad debts accrued recovered or reversed in the current period
Provision for bad debts:
Unit: RMB
Opening Amount of change in the current period
Category Closing balance
balance Provision Collect or reversal Write-off Others
Provision for bad
5051710 9473 5061183
debts by portfolio
Total 5051710 9473 5061183
5) Top 5 of the closing balance of the other accounts receivable collated according to the arrears party
Unit: RMB
Proportion of the total Closing
Name ofthecompany Nature of accounts Closing balance Aging year end balance of the balance of bad
accounts receivable (%) debt provision
CSG Technology Subsidiary 754757255 W ithin 1 year 22%
Shenzhen CSG 386042771
Subsidiary Within 1 year 11%
Display
Qingyuan CSG 361938627
Subsidiary Within 1 year 11%
Energy-saving
Dongguan CSG 217211159
Subsidiary Within 1 year 6%
PV-tech
China Southern Glass 214438085
Subsidiary Within 1 year 6%
(Hong Kong)
Total -- 1934387897 -- 56%
2. Long-term equity investment
Unit: RMB
Closing balance Opening balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Investment in
6189306870 15000000 6174306870 5859507870 15000000 5844507870
subsidiaries
Total 6189306870 15000000 6174306870 5859507870 15000000 5844507870
(1) Investment in subsidiaries
Unit: RMB
Increase and decrease in the current period Closing
Closing balance of
Opening balance Provision
Invested company Additional Reducing balance provision
(book value) for Others
investment investment (book value) for
impairment
impairment
Chengdu CSG Glass Co. Ltd. 151397763 151397763
Sichuan CSG Energy Conservation 119256949 119256949
Tianjin Energy Conservation Glass
247833327 247833327
Co. Ltd.Dongguan CSG Architectural Glass
198276242 198276242
Co. Ltd.Dongguan CSG Solar Glass Co.355120247 355120247
Ltd.Yichang CSG Polysilicon Co. Ltd. 640856170 640856170
Wujiang CSG North-east 254401190 254401190
Architectural Glass Co. Ltd.Hebei CSG Glass Co. Ltd. 266189705 266189705
China Southern Glass (Hong Kong)
87767304 87767304
Limited
Wujiang CSG Glass Co. Ltd. 567645430 567645430
Jiangyou CSG Mining Development
102415096 102415096
Co. Ltd.Xianning CSG Glass Co. Ltd. 181116277 181116277
Xianning CSG Energy Conservation
165452035 165452035
Glass Co. Ltd.Qingyuan CSG Energy Saving New
885273105 885273105
Materials Co.Ltd.Shenzhen CSG Financial Leasing
133500000 133500000
Co. Ltd.Shenzhen CSG PV Energy Co. Ltd. 100335176 100335176
Shenzhen Nanbo Display
550765474 550765474
Technology Co. Ltd.Zhaoqing CSG Energy-Saving
129701000 20299000 150000000
Glass Co. Ltd.Zhaoqing CSG Automobile Glass
43201000 12500000 55701000
Co. Ltd.Dongguan CSG PV-tech Co. Ltd. 382112183 382112183
Anhui CSG New Energy Materials 20000000 280000000 300000000
Anhui CSG New Quartz material 3000000 17000000 20000000
Shenzhen CSG Medical 20000000 20000000
Others 253892197 253892197 15000000
Total 5859507870 329799000 6189306870 15000000
3. Operating income and operating costs
Unit: RMB
Occurred in this term Occurred in previous term
Item
Income Costs Income Costs
Other business 42342857 37484754
Total 42342857 37484754
4. Investment income
Unit: RMB
Item Occurred in this term Occurred in previous term
Long-term equity investment accounted by cost method 715020699 703591508
Investment income of trading financial assets during the holding period 2858476
Fixed deposit income 5964677
Total 718475642 703591508
XVI. Supplementary Information
1. Items and amounts of extraordinary profit (gains)/loss
√Applicable □Not applicable
Unit: RMB
Item Amount Note
Gains/losses from the disposal of non-current asset (including the write-off that137638
accrued for impairment of assets)
Governmental subsidy reckoned into current gains/losses (not including the
subsidy enjoyed in quota or ration according to national standards which are 34784072
closely relevant to enterprise’s business)
In addition to the effective hedging business related to the normal business of
the company the profit and loss from changes in fair value arising from the
holding of trading financial assets derivative financial assets trading financial
liabilities and derivative financial liabilities as well as the investment income 3672330
from the disposal of trading financial assets derivative financial assets trading
financial liabilities derivative financial liabilities and other creditor's rights
investments
Other non-operating income and expenditure except for the aforementioned
-8910187
items
Less: Impact on income tax 5384885
Impact on minority shareholders’ equity (post-tax) 1596031
Total 22702937 --
Explain reasons for the extraordinary profit (gain)/loss defined by Q&A Announcement No.1 on Information Disclosure for
Companies Offering Their Securities to the Public --- Extraordinary Profit/loss and the items defined as recurring profit (gain)/loss
according to the lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies
Offering Their Securities to the Public --- Extraordinary Profit/loss.□Applicable √ Not applicable
2. Return on net assets and earnings per share
The weighted Earnings per share
Profit in the report period average net Basic earnings per Diluted earnings per
assets ratio share (RMB/share) share (RMB/share)
Net profit attributable to ordinary shareholders of the Company 12.60% 0.44 0.44
Net profit attributable to ordinary shareholders of the Company after
12.39% 0.43 0.43
deducting non-recurring gains and losses
3. Difference of accounting data under domestic and overseas accounting standards
(1) Differences of the net profit and net assets disclosed in financial report prepared under international
and Chinese accounting standards
□ Applicable √ Not applicable
(2) Difference of the net profit and net assets disclosed in financial report prepared under overseas and
Chinese accounting standards
□ Applicable √ Not applicable
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