CSG HOLDING CO. LTD. Financial Report of Semi-annual Report 2024
CSG HOLDING CO. LTD.Financial Report of Semi-annual Report 2024
I. Report of the auditors
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 amounts in the tables in the Notes to the Financial Statements are expressed in RMB.
1. Consolidated balance sheet
Prepared by: CSG Holding Co. Ltd.
30 June 2024
Unit: RMB
Item 30 June 2024 1 January 2024
Current assets：
Cash at bank and on hand 3619278955 3076774218
Notes receivable 1569125486 1593520494
Accounts receivable 1845881636 1881796408
Receivables Financing 622130245 529945623
Advances to suppliers 120163652 155476645
Other receivables 173913608 177957033
Inventories 1978742256 1590224795
Non-current assets due within one year 84191224
Other current assets 413804979 352066698
Total current assets 10343040817 9441953138
Non-current assets：
Investment properties 292711858 290368105
Fixed assets 12785878380 13145568631
Construction in progress 5860245516 4325016420
Right-of-use assets 20668967 21637628
Intangible assets 2420861237 2490530224
Goodwill 8593352 8593352
Long-term prepaid expenses 19903233 18764429
Deferred tax assets 284259290 223025031
Other non-current assets 232792856 396600354
Total non-current assets 21925914689 20920104174
1CSG HOLDING CO. LTD. Financial Report of Semi-annual Report 2024
Item 30 June 2024 1 January 2024
Total assets 32268955506 30362057312
Current liabilities：
Short-term borrowings 288350882 436853583
Notes payable 2509626956 2041353189
Accounts payable 3338914236 3341624602
Contract liabilities 343813781 362538795
Employee benefits payable 325264034 483337796
Taxes payable 166777597 123407413
Other payables 1160609297 484741877
Including: interest payable 8863897 8751408
Dividends payable 767673027
Current portion of non-current
15404856951248891979
liabilities
Other current liabilities 296865126 454332686
Total current liabilities 9970707604 8977081920
Non-current liabilities：
Long-term borrowings 6750620208 6221648676
Lease liabilities 14679278 15134562
Long-term payables 510957893 88204163
Provisions 12031343 13050082
Deferred income 441426757 430143830
Deferred tax liabilities 75030913 80087910
Total non-current liabilities 7804746392 6848269223
Total liabilities 17775453996 15825351143
Shareholders’ equity：
Share capital 3070692107 3070692107
Capital surplus 590739414 590739414
Other comprehensive income 178601860 177384471
Special reserve 3363900 1411139
Surplus reserve 1404063298 1404063298
Undistributed profits 8771988323 8806549788
Total equity attributable to
1401944890214050840217
shareholders of parent company
Minority interests 474052608 485865952
Total shareholders' equity 14493501510 14536706169
Total liabilities and shareholders' equity 32268955506 30362057312
Legal representative: Chen Lin Principal in charge of accounting: Wang Wenxin Head of accounting department:
Wang Wenxin
2. Balance sheet of the parent company
2CSG HOLDING CO. LTD. Financial Report of Semi-annual Report 2024
Unit: RMB
Item 30 June 2024 1 January 2024
Current assets：
Cash at bank and on hand 1405056729 1827896587
Accounts receivable 237211824 240038959
Receivables Financing 35231635 5234304
Advances to suppliers 2034835 1428810
Other receivables 2537334449 2157102479
Including: Dividends receivable 127775200 126870800
Non-current assets due within one year 84191224
Total current assets 4216869472 4315892363
Non-current assets：
Long-term equity investments 10229533769 9806533769
Fixed assets 7909754 8737647
Intangible assets 9552772 9846993
Long-term prepaid expenses 3484218 3784407
Other non-current assets 3900657 1683913
Total non-current assets 10254381170 9830586729
TOTAL ASSETS 14471250642 14146479092
Current liabilities：
Short-term borrowings 15000000 100000000
Notes payable 227613519 484035958
Accounts payable 244777834 257032871
Employee benefits payable 32376007 70030907
Taxes payable 4925918 2558059
Other payables 3341402835 2857183005
Including: interest payable 2189475 1933504
Dividends
767673027
payable
Current portion of non-current
536069800647500000
liabilities
Total current liabilities 4402165913 4418340800
Non-current liabilities：
Long-term borrowings 1718420200 1302250000
Deferred income 171562500 171750000
Total non-current liabilities 1889982700 1474000000
Total liabilities 6292148613 5892340800
Shareholders’ equity：
Share capital 3070692107 3070692107
Capital surplus 741824399 741824399
Surplus reserve 1418608658 1418608658
3CSG HOLDING CO. LTD. Financial Report of Semi-annual Report 2024
Item 30 June 2024 1 January 2024
Undistributed profits 2947976865 3023013128
Total shareholders' equity 8179102029 8254138292
Total liabilities and shareholders' equity 14471250642 14146479092
3. Consolidated income statement
Unit: RMB
Item H1 2024 H1 2023
I. Total business income 8078970651 8389340245
Including: operating income 8078970651 8389340245
II. Total operating costs 7363291697 7477912994
Including: operating costs 6333338505 6495395931
Taxes and surcharges 67905677 76379004
Selling and distribution expenses 155003701 146856141
General and administrative expenses 394521014 340252772
Research and development expenses 336673375 346264501
Financial expenses 75849425 72764645
Including: interest expenses 115225970 113306203
Interest income 31170207 45500449
Add：Other Income 116694636 47203839
Investment income（Loss is listed with “-”） -4863078 -4083180
Credit impairment loss（Loss is listed with “-”） 7380905 -7601224
Asset impairment loss（Loss is listed with “-”） -41315915 24908
Income on disposal assets（Loss is listed with “-”） 4202074 53451
III. Operating profit（Loss is listed with “-”） 797777576 947025045
Add: Non-operating revenue 4928794 9453333
Less: Non-operating expenses 3180495 486800
IV. Total profit（Loss is listed with “-”） 799525875 955991578
Less: Income tax expenses 78227657 74094170
V. Net profit (Net loss is listed with “-”) 721298218 881897408
（1）Classified by continuous operation:
1. Net income from continuing operations (Net loss is
721298218881897408
listed with “-”)
（2）Classified by equity ownership:
1.Attributable to shareholders of parent company 733111562 889478780
2.Minority interests -11813344 -7581372
VI. Other comprehensive income net after tax 1217389 10030559
Other comprehensive income net after tax attributable to
121738910030559
shareholders of parent company
（1）Other comprehensive income to be reclassified
121738910030559
into profit and loss
1. Translation differences arising on translation of
121738910030559
foreign currency financial statement
VII. Total comprehensive income 722515607 891927967
Total comprehensive income attributable to shareholders 734328951 899509339
4CSG HOLDING CO. LTD. Financial Report of Semi-annual Report 2024
Item H1 2024 H1 2023
of the parent company
Total comprehensive income attributable to minority
-11813344-7581372
shareholders
VIII. Earnings per share
（1）Basic earnings per share 0.24 0.29
（2）Diluted earnings per share 0.24 0.29
Legal representative: Chen Lin Principal in charge of accounting: Wang Wenxin Head of accounting department:
Wang Wenxin
4. Income statement of the parent company
Unit: RMB
Item H1 2024 H1 2023
I. Operating income 196004063 219825718
Less: operating costs
Taxes and surcharges 1569126 1405865
Selling and distribution expenses 20151569 10326349
General and administrative expenses 134311842 137413753
Research and development expenses 290120
Financial expenses 5210579 15872574
Including: interest expenses 31753909 61444973
Interest income 25751103 41530076
Add：Other Income 1009464 3002974
Investment income（Loss is listed with “-”） 656824755 1682067333
Credit impairment loss（Loss is listed with “-”） 70299 459771
Income on disposal assets（Loss is listed with “-”） 28035
II. Operating profit（Loss is listed with “-”） 692693500 1740047135
Add: Non-operating revenue 14664 1770
Less: Non-operating expenses 71400 170614
III. Total profit（Loss is listed with “-”） 692636764 1739878291
Less: Income tax expenses
IV. Net profit (Net loss is listed with “-”) 692636764 1739878291
（1）Net income from continuing operations (Net loss is
6926367641739878291
listed with “-”)
（2）Net income from discontinued operations(Net loss is
listed with “-”)
V. Total comprehensive income 692636764 1739878291
VI. Earnings per share
5. Consolidated statement of cash flows
5CSG HOLDING CO. LTD. Financial Report of Semi-annual Report 2024
Unit: RMB
Item H1 2024 H1 2023
I. Cash flows from operating activities：
Cash received from sales of goods or rendering of services 8467658366 8167102471
Refund of taxes and surcharges 32599323 129649279
Cash received relating to other operating activities 120575427 235147053
Sub-total of cash inflows from operating activities 8620833116 8531898803
Cash paid for goods and services 5815275525 6164275159
Cash paid to and on behalf of employees 1220487978 1161324786
Payments of taxes and surcharges 320331418 481706537
Cash paid relating to other operating activities 271454050 206165136
Sub-total of cash outflows from operating activities 7627548971 8013471618
Net cash flows from/(used in) operating activities 993284145 518427185
II. Cash flows from investing activities：
Cash received from returns on investments 140000000 20000000
Cash received from returns on invest income 5376333 775676
Net cash received from disposal of fixed assets intangible assets
21021307176747
and other long-term assets
Cash received relating to other investing activities 32629490
Sub-total of cash inflows from operating activities 166397640 53581913
Cash paid to acquire fixed assets intangible assets and other
14925127381714949765
long-term asset
Cash paid to acquire investments 162800000 20000000
Net cash paid to acquire subsidiaries and other business units 696000
Cash paid relating to other investing activities 26244829
Sub-total of cash outflows from operating activities 1681557567 1735645765
Net cash flows (used in)/from investing activities -1515159927 -1682063852
III. Cash flows from financing activities：
Cash received from investors 4000000
Including: Cash received from absorbing minority shareholders’
4000000
investment by subsidiaries
Cash received from borrowings 1605003386 1792403638
Cash received relating to other financing activities 458231000 12000000
Sub-total of cash inflows from operating activities 2063234386 1808403638
Cash repayments of borrowings 900033363 2351598051
Cash payments for interest expenses and distribution of
139192778227681798
dividends or profits
Cash payments relating to other financing activities 86415538 23054274
Sub-total of cash outflows from operating activities 1125641679 2602334123
Net cash flows (used in)/from financing activities 937592707 -793930485
IV. Effect of foreign exchange rate changes on cash 10660765 2809041
V. Net increase/(decrease) in cash and cash equivalents 426377690 -1954758111
Add: Cash and cash equivalents at beginning of period 3051261655 4594018251
VI. Cash and cash equivalents at end of period 3477639345 2639260140
6CSG HOLDING CO. LTD. Financial Report of Semi-annual Report 2024
6. Statement of cash flows of the parent company
Unit: RMB
Item H1 2024 H1 2023
I. Cash flows from operating activities：
Cash received from sales of goods or rendering of services 857809508 346331261
Cash received relating to other operating activities 26636779 207913289
Sub-total of cash inflows from operating activities 884446287 554244550
Cash paid for goods and services 667365408 59456484
Cash paid to and on behalf of employees 176610778 182805295
Payments of taxes and surcharges 8574661 22354669
Cash paid relating to other operating activities 76762407 17475295
Sub-total of cash outflows 929313254 282091743
Net cash flows from/(used in) operating activities -44866967 272152807
II. Cash flows from investing activities：
Cash received from returns on investments 80000000 20000000
Cash received from returns on invest income 661015979 1931308828
Net cash received from disposal of fixed assets intangible assets
316802000
and other long-term assets
Sub-total of cash inflows 741047659 1951310828
Cash paid to acquire fixed assets intangible assets and other
37505315775984
long-term assets
Cash paid to acquire investments 523000000 999282840
Sub-total of cash outflows 526750531 1005058824
Net cash flows (used in)/from investing activities 214297128 946252004
III. Cash flows from financing activities：
Cash received from borrowings 643490000 610000000
Sub-total of cash inflows 643490000 610000000
Cash repayments of borrowings 423750000 2216543000
Cash payments for interest expenses and distribution of
31497937154494391
dividends or profits
Cash paid relating to other financing activities 880514582 532071876
Sub-total of cash outflows 1335762519 2903109267
Net cash flows (used in)/from financing activities -692272519 -2293109267
IV. Effect of foreign exchange rate changes on cash 2413 18222
V. Net increase/(decrease) in cash and cash equivalents -522839945 -1074686234
Add: Cash and cash equivalents at beginning of period 1827884309 2595003883
VI. Cash and cash equivalents at end of period 1305044364 1520317649
7CSG HOLDING CO. LTD. Financial Report of Semi-annual Report 2024
7. Consolidated statement of changes in owner's equity
H1 2024
Unit: RMB
H1 2024
Equity attributable to shareholders of parent company
Item Total
Other Minority
Capital Special Undistributed shareholders'
Share capital comprehensiv Surplus reserve Sub-total interests
surplus reserve profits equity
e income
I. Balance at the end of the
30706921075907394141773844711411139140406329888065497881405084021748586595214536706169
last year
II. Balance at the beginning
30706921075907394141773844711411139140406329888065497881405084021748586595214536706169
of the period
III. Movements for the
period (Decrease is listed 1217389 1952761 -34561465 -31391315 -11813344 -43204659
with “-”)
（I）Total comprehensive
1217389733111562734328951-11813344722515607
income（II）Capital increase or
decrease from shareholder
1. Ordinary shares
contributed by the owner
2. Others（III）Profit distribution -767673027 -767673027 -767673027
1. Transfer to surplus
reserves
2. Distribution to owners
-767673027-767673027-767673027（or shareholders）（IV）Special reserve 1952761 1952761 1952761
1．Special reserve
313907531390753139075
appropriate
8CSG HOLDING CO. LTD. Financial Report of Semi-annual Report 2024
2．Special reserve used 1186314 1186314 1186314
IV. Balance at the end of the
30706921075907394141786018603363900140406329887719883231401944890247405260814493501510
period
9CSG HOLDING CO. LTD. Financial Report of Semi-annual Report 2024
H1 2023
Unit: RMB
H1 2023
Equity attributable to shareholders of parent company
Item Total
Other Minority
Capital Special Undistributed shareholders' interests
Share capital comprehensiv Surplus reserve Sub-total
surplus reserve profits equity
e income
I. Balance at the end of the
3070692107596997085170860478731580122863400177869684551285488370652078759713375671303
last year
II. Balance at the beginning
3070692107596997085170860478731580122863400177869684551285488370652078759713375671303
of the period
III. Movements for the
period (Decrease is listed 10030559 -521061 889478780 898988278 -3581372 895406906
with “-”)
（I）Total comprehensive
10030559889478780899509339-7581372891927967
income（II）Capital increase or
40000004000000
decrease from shareholder
1. Contributions from
shareholders in common 4000000 4000000
stock
2. Others（III）Profit distribution
1. Transfer to surplus
reserves
2. Distribution to owners
(or shareholders)（IV）Special reserve -521061 -521061 -521061
1．Special reserve
503898450389845038984
appropriate
10CSG HOLDING CO. LTD. Financial Report of Semi-annual Report 2024
H1 2023
Equity attributable to shareholders of parent company
Item Total
Other Minority
Capital Special Undistributed shareholders'
Share capital comprehensiv Surplus reserve Sub-total interests
surplus reserve profits equity
e income
2．Special reserve used 5560045 5560045 5560045
IV. Balance at the end of
3070692107596997085180891037210519122863400186764472351375387198451720622514271078209
the period
11CSG HOLDING CO. LTD. Financial Report of Semi-annual Report 2024
8. Statement of changes in owners' equity of the parent company
H1 2024
Unit: RMB
H1 2024
Item
Total shareholders'
Share capital Capital surplus Surplus reserve Undistributed profits
equity
I. Balance at the end of the last year 3070692107 741824399 1418608658 3023013128 8254138292
II. Balance at the beginning of the period 3070692107 741824399 1418608658 3023013128 8254138292
III. Movements for the period (Decrease is listed with
-75036263-75036263
“-”)
（I）Total comprehensive income 692636764 692636764（II）Capital increase or decrease from shareholder（III）Profit distribution -767673027 -767673027
1. Transfer to surplus reserves
2. Distribution to shareholders -767673027 -767673027（IV）Internal carry-forward of owners' equity
（V）Special reserve（VI）Others
IV. Balance at the end of the period 3070692107 741824399 1418608658 2947976865 8179102029
12CSG HOLDING CO. LTD. Financial Report of Semi-annual Report 2024
H1 2023
Unit: RMB
H1 2023
Item Total shareholders'
Share capital Capital surplus Surplus reserve Undistributed profits
equity
I. Balance at the end of the last year 3070692107 741824399 1243179361 1904753271 6960449138
II. Balance at the beginning of the period 3070692107 741824399 1243179361 1904753271 6960449138
III. Movements for the period (Decrease is listed with
17398782911739878291
“-”)
（I）Total comprehensive income 1739878291 1739878291（II）Capital increase or decrease from shareholder（III）Profit distribution
1. Transfer to surplus reserves
2. Distribution to owners (or shareholders)（IV）Internal carry-forward of owners' equity
（V）Special reserve（VI）Others
IV. Balance at the end of the period 3070692107 741824399 1243179361 3644631562 8700327429
13CSG HOLDING CO. LTD. Financial Report of Semi-annual Report 2024
III. GENERAL INFORMATION
CSG Holding Co. Ltd. (the “Group”) 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 Group 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 Group 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 30 June 2024 the registered
capital of the Group was RMB3070692107 with nominal value of RMB1 per share.The Group and its subsidiaries (collectively referred to as the “Group”) are mainly engaged in the manufacture and
sales of float glass photovoltaic glass specialised glass engineering glass energy saving glass silicon related
materials polycrystalline silicon and solar components and electronic-grade display device glass and the construction
and operation of photovoltaic plant etc.The financial statements and the notes thereto were authorised for issue by the Board of Directors of the Group on 22
August 2024.Details on the major subsidiaries included in the consolidated scope in the current period were stated in the notes to
the financial statements.IV. BASIS OF PREPARATION OF FINANCIAL STATEMENTS
1. Basis of preparation of financial statements
These financial statements are prepared in accordance with the Accounting Standards for Business Enterprises and
their application guidelines interpretations and other relevant regulations issued by the Ministry of Finance
(collectively: “Accounting Standards for Business Enterprises”). In addition the Group also discloses relevant
financial information in accordance with the China Securities Regulatory Commission’s Information Disclosure and
Preparation Rules for Companies that Offer Securities to the Public No. 15 - General Provisions on Financial
Reports (Revised in 2023).The Group’s accounting is based on the accrual basis. Except for certain financial instruments and investment
properties these financial statements are measured on a historical cost basis. If an asset is impaired corresponding
impairment provisions will be made in accordance with relevant regulations.
2. Going concern
The present financial report has been prepared on the basis of going concern assumptions.V. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES
The depreciation of fixed assets amortization of intangible assets capitalization conditions for R&D expenses and
revenue recognition policies based on its own production and operation characteristics. For specific accounting
policies please refer to Note.
1. Statement of compliance with the Accounting Standards for Business Enterprises
This financial statement complies with the requirements of the Accounting Standards for Business Enterprises and
truly and completely reflects the Group’s consolidated and company financial status as of 30 June 2024 as well as the
14CSG HOLDING CO. LTD. Financial Report of Semi-annual Report 2024
consolidated and company operating results consolidated and company cash flows and other relevant information
from January to June 2024.
2. Accounting year
The Group adopts the Gregorian calendar year that is from 1 January to 31 December each year.
3. Operating cycle
The Group’s operating cycle is 12 months.
4. Recording currency
The Group and its domestic subsidiaries use RMB as their functional currency for accounting. The Group’s overseas
subsidiaries determine their recording currency based on the currency of the main economic environment in which
they operate. The currency used by the Group in preparing these financial statements is RMB.
5. Materiality criteria determination method and selection basis
□Applicable □Not applicable
Item Materiality criterion
Significant single provision for The amount of individual accounts receivable provision accounts for over 5% of
bad debts in accounts receivable the combined accounts receivable balance
Significant single provision for The amount of individual other receivables provision accounts for over 10% of
bad debts in other receivables the combined other receivables balance
The impact on the company’s current profit and loss accounts for over 5% of the
Significant write-off of accounts
net profit absolute value for the most recent audited fiscal year and exceeds 1
receivable/other receivables
million yuan in absolute amount
Significant construction in The budgeted investment amount accounts for over 5% of the recent audited
progress attributable equity to the parent company
Significant non-wholly owned
The subsidiary’s total assets account for over 5% of the consolidated total assets
subsidiaries
6. Accounting treatment of business combinations under the common control and under non- common
control
(1) Business combinations involving enterprises under common control
For business mergers under common control the assets and liabilities of the merged party acquired by the merging
party during the merger shall be measured based on the book value of the merged party in the consolidated financial
statements of the ultimate controlling party on the merger date. The difference between the book value of the merger
consideration (or the total face value of the shares issued) and the book value of the net assets obtained in the merger
is adjusted to the capital reserve (share premium). If the capital reserve (share premium) is insufficient to offset it the
retained earnings are adjusted.The merger of enterprises under the same control is realized step by step through multiple transactions.The assets and liabilities of the merged party acquired by the merging party in the merger shall be measured based on
the book value in the consolidated financial statements of the ultimate controlling party on the date of merger; the
book value of the investments held before the merger plus the book value of the newly paid consideration on the date
of merger The difference between the sum and the book value of the net assets obtained in the merger shall be
adjusted to the capital reserve (equity premium) . If the capital reserve is insufficient for offset the retained earnings
shall be adjusted. The long-term equity investment held by the merging party before it obtained control of the merged
15CSG HOLDING CO. LTD. Financial Report of Semi-annual Report 2024
party has been confirmed to be relevant between the date of acquiring the original equity and the date when the
merging party and the merged party are under the final control of the same party whichever is later to the date of
merger. Changes in profits and losses other comprehensive income and other owners’ equity should be offset against
the opening retained earnings or current profits and losses during the comparative statement period respectively.
(2) Business combination not under common control
For business combinations not under common control the combination cost shall be the assets paid liabilities
incurred or assumed and the fair value of equity securities issued to obtain control of the purchased party on the
acquisition date. On the purchase date the acquired assets liabilities and contingent liabilities of the purchased party
are recognized at fair value.If the merger cost is greater than the fair value share of the acquiree’s identifiable net assets obtained in the merger.The difference is recognized as goodwill and is subsequently measured at cost less accumulated impairment reserves;
if the merger cost is less than the acquiree’s identifiable net assets acquired in the merger the difference is recognized
as goodwill. The difference between the fair value of the net assets will be included in the current profit and loss after
review.The merger of enterprises not under common control is realized step by step through multiple transactions.The merger cost is the sum of the consideration paid on the purchase date and the fair value of the purchased party’s
equity held before the purchase date on the purchase date. For the equity of the purchased party that has been held
before the purchase date it will be remeasured according to the fair value of the equity on the purchase date and the
difference between the fair value and its book value will be included in the investment income of the current period;
The purchaser’s equity held before the purchase date involves other comprehensive income changes in other owners’
equity are converted into current income on the purchase date other comprehensive income arising from the
investee’s remeasurement of the net liabilities or changes in net assets of the defined benefit plan and other
comprehensive income originally designated as fair value Except for other comprehensive income related to
investments in non-trading equity instruments that are measured and whose changes are included in other
comprehensive income.
(3) Handling of Transaction Costs in Business Combinations
Intermediary fees such as auditing legal services evaluation and consulting and other related management fees
incurred for business mergers are included in the current profit and loss when incurred. The transaction costs of
equity securities or debt securities issued as consideration for the merger shall be included in the initial recognition
amount of the equity securities or debt securities.
7. Judgment standards for control and methods for preparing consolidated financial statements
(1) Control criteria
The scope of consolidation in consolidated financial statements is determined based on control. Control means that
the Group has power over the invested unit enjoys variable returns by participating in the relevant activities of the
invested unit and has the ability to use its power over the invested unit to affect its return amount. The Group will
reassess when changes in relevant facts and circumstances lead to changes in the relevant elements involved in the
definition of control.When judging whether to include structured entities into the scope of consolidation the Group comprehensively
considers all facts and circumstances including assessing the purpose and design of the structured entities identifying
the types of variable returns and whether it bears part or all of the returns by participating in its related activities.Evaluate whether the structured entity is controlled based on variability etc.
(2) How to prepare consolidated financial statements
16CSG HOLDING CO. LTD. Financial Report of Semi-annual Report 2024
The consolidated financial statements are based on the financial statements of the Group and its subsidiaries and are
prepared by the Group based on other relevant information. When preparing consolidated financial statements the
accounting policies and accounting period requirements of the Group and its subsidiaries are consistent and
significant inter-company transactions and balances are offset.Subsidiaries and businesses that are added due to business combinations under the same control during the reporting
period are deemed to be included in the scope of consolidation of the Group from the date they are both controlled by
the ultimate controlling party. The operating results and cash flows from the date of the announcement are included in
the consolidated income statement and consolidated cash flow statement respectively.For subsidiaries and businesses that are added due to business combinations not under common control during the
reporting period the income expenses and profits of the subsidiaries and businesses from the date of acquisition to
the end of the reporting period are included in the consolidated income statement and their cash flows are included in
the consolidated cash flow statement.The part of the subsidiary’s shareholders’ equity that is not owned by the Group is listed separately as minority
shareholders’ equity in the consolidated balance sheet under shareholders’ equity; the share of the subsidiary’s current
net profit and loss that is minority shareholders’ equity is listed in the consolidated income statement. The net profit
item is listed under the item “Profits and losses of minority shareholders”. If the losses of a subsidiary shared by
minority shareholders exceed the minority shareholders’ share of the opening owner’s equity of the subsidiary the
balance will still offset the minority shareholders’ equity.
(3) Purchase of minority shareholders’ equity in subsidiaries
The difference between the newly acquired long-term equity investment cost due to the purchase of minority shares
and the share of the subsidiary’s net assets calculated continuously from the date of purchase or merger based on the
new shareholding ratio and without losing control The difference between the disposal price obtained from the partial
disposal of the equity investment in the subsidiary and the corresponding share of the subsidiary’s net assets
calculated continuously from the date of purchase or merger date corresponding to the disposal of the long-term
equity investment shall be adjusted in the consolidated balance sheet. Capital reserve (equity premium/capital
premium) if the capital reserve is insufficient to offset the retained earnings will be adjusted.
(4) Treatment of loss of control of subsidiaries
If the control over the original subsidiary is lost due to the disposal of part of the equity investment or other reasons
the remaining equity shall be remeasured according to its fair value on the date of loss of control; the sum of the
consideration obtained from the disposal of the equity and the fair value of the remaining equity shall be less
Calculated based on the original shareholding ratio the sum of the share of the book value of the net assets and
goodwill of the original subsidiary calculated continuously from the date of purchase shall be included in the
investment income in the current period when control is lost.Other comprehensive income related to the equity investment of the original subsidiary should be accounted for on
the same basis as the original subsidiary’s direct disposal of relevant assets or liabilities when the control is lost.Any
income related to the original subsidiary that involves accounting under the equity method other changes in owners’
equity should be transferred to the current profits and losses when control is lost.
8. Determination criteria for cash and cash equivalents
Cash refers to cash on hand and deposits that can be used for payment at any time. Cash equivalents refer to
investments held by the Group that are short-term highly liquid easily convertible into known amounts of cash and
have little risk of value changes.
9. Foreign currency business and foreign currency statement conversion
(1) Foreign currency business
17CSG HOLDING CO. LTD. Financial Report of Semi-annual Report 2024
The Group’s foreign currency business is converted into the recording currency amount based on the spot exchange
rate on the date of the transaction.On the balance sheet date foreign currency monetary items are converted using the spot exchange rate on the balance
sheet date. The exchange difference arising from the difference between the spot exchange rate on the balance sheet
date and the spot exchange rate at the time of initial recognition or the previous balance sheet date is included in the
current profit and loss; for foreign currency non-monetary items measured at historical cost the spot exchange rate on
the date of the transaction is still used The foreign currency non-monetary items measured at fair value shall be
converted at the spot exchange rate on the date when the fair value is determined. The difference between the
converted accounting functional currency amount and the original accounting functional currency amount shall be
converted according to the non-monetary accounting currency amount. The nature of monetary items is included in
current profits and losses or other comprehensive income.
(2) Translation of foreign currency financial statements
On the balance sheet date when converting the foreign currency financial statements of overseas subsidiaries the
asset and liability items in the balance sheet are translated using the spot exchange rate on the balance sheet date.Except for “undistributed profits” shareholders’ equity items include other items. Converted using the spot exchange
rate on the date of occurrence.Income and expense items in the income statement are translated using the spot exchange rate on the date of
transaction.All items in the cash flow statement are translated according to the spot exchange rate on the date when the cash flowoccurs. The impact of exchange rate changes on cash is regarded as an adjustment item and is reflected in the “Impactof exchange rate changes on cash and cash equivalents” separately in the cash flow statement.Differences arising from the translation of financial statements are reflected in the “other comprehensive income”
item under the shareholders’ equity item in the balance sheet.When an overseas operation is disposed of and control is lost the translation difference of the foreign currency
statements listed under the shareholders’ equity item in the balance sheet and related to the overseas operation shall
be transferred to the current profit and loss of the disposal in full or in proportion to the disposal of the overseas
operation.
10. Financial tool
A financial instrument is a contract that forms a financial asset of one party and a financial liability or equity
instrument of another party.
(1) Recognition and derecognition of financial instruments
The Group recognizes a financial asset or financial liability when it becomes a party to a financial instrument contract.Financial assets shall be derecognized if they meet one of the following conditions:
1) The contractual right to receive cash flows from the financial asset terminates;
2) The financial asset has been transferred and meets the following conditions for derecognition of financial asset
transfer.If the current obligation of a financial liability has been discharged in whole or in part the financial liability or part of
it shall be derecognised. If the Group (debtor) signs an agreement with its creditors to replace existing financial
liabilities by assuming new financial liabilities and the contract terms of the new financial liabilities are substantially
different from the existing financial liabilities the existing financial liabilities will be derecognized and the new
financial liabilities will be recognized at the same time.
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When financial assets are bought and sold in a regular manner accounting recognition and derecognition will be
carried out based on the transaction date.
(2) Classification and measurement of financial assets
Upon initial recognition the Group classifies financial assets into the following three categories based on the business
model of managing financial assets and the contractual cash flow characteristics of financial assets: financial assets
measured at amortized cost financial assets measured at fair value through other comprehensive income and financial
assets measured at fair value through profits and losses.Financial assets are measured at fair value upon initial recognition. For financial assets measured at fair value through
profit and loss the relevant transaction costs are directly included in the current profit and loss; for other types of
financial assets the relevant transaction costs are included in the initial recognition amount. For receivables arising
from the sale of products or provision of services that do not include or take into account significant financing
components the amount of consideration that the Group is expected to be entitled to receive shall be deemed as the
initial recognition amount.Financial assets measured at amortized cost
The Group classifies financial assets that meet the following conditions and are not designated as measured at fair
value through profit or loss as financial assets measured at amortized cost:
* The Group’s business model for managing this financial asset is aimed at collecting contractual cash flows;
* The contractual terms of the financial asset provide that the cash flows generated on a specific date are solely
payments of principal and interest based on the outstanding principal amount.After initial recognition such financial assets are measured at amortized cost using the effective interest rate method.Gains or losses arising from financial assets that are measured at amortized cost and are not part of any hedging
relationship are included in the current profit and loss when they are derecognized amortized according to the
effective interest method or impairment is recognized.Financial assets measured at fair value through other comprehensive income
The Group classifies financial assets that meet the following conditions and are not designated as measured at fair
value through profit or loss as financial assets at fair value through other comprehensive income:
* The Group’s business model for managing the financial assets aims at both collecting contractual cash flows and
selling the financial assets;
* The contractual terms of the financial asset provide that the cash flows generated on a specific date are solely
payments of principal and interest based on the outstanding principal amount.After initial recognition such financial assets are subsequently measured at fair value. Interest impairment losses or
gains and exchange gains and losses calculated using the effective interest rate method are included in the current
profit and loss and other gains or losses are included in other comprehensive income. When derecognition is
terminated the accumulated gains or losses previously included in other comprehensive income will be transferred
out of other comprehensive income and included in the current profit and loss.Financial assets measured at fair value through profits and losses
Except for the above-mentioned financial assets measured at amortized cost and at fair value through other
comprehensive income the Group classifies all remaining financial assets as financial assets at fair value through
profit or loss. At the time of initial recognition in order to eliminate or significantly reduce accounting mismatches
the Group irrevocably designated some financial assets that should have been measured at amortized cost or at fair
value through other comprehensive income as financial assets measured through profits and losses.After initial recognition such financial assets are subsequently measured at fair value and the resulting gains or
losses (including interest and dividend income) are included in the current profits and losses unless the financial
19CSG HOLDING CO. LTD. Financial Report of Semi-annual Report 2024
assets are part of a hedging relationship.The business model for managing financial assets refers to how the Group manages financial assets to generate cash
flow. The business model determines whether the source of cash flow from the financial assets managed by the Group
is collection of contractual cash flow sale of financial assets or both. The Group determines the business model for
managing financial assets based on objective facts and specific business objectives for managing financial assets
determined by key management personnel.The Group evaluates the contractual cash flow characteristics of financial assets to determine whether the contractual
cash flows generated by the relevant financial assets on a specific date are only payments of principal and interest
based on the outstanding principal amount. Among them principal refers to the fair value of the financial asset at the
time of initial recognition; interest includes consideration for the time value of money the credit risk associated with
the outstanding principal amount in a specific period and other basic lending risks costs and profits. In addition the
Group evaluates contract terms that may cause changes in the time distribution or amount of contractual cash flows of
financial assets to determine whether they meet the requirements of the above contractual cash flow characteristics.Only when the Group changes its business model for managing financial assets all affected relevant financial assets
will be reclassified on the first day of the first reporting period after the change in business model. Otherwise
financial assets shall not be reclassified after initial recognition.Financial assets are measured at fair value upon initial recognition. For financial assets measured at fair value through
profit and loss the relevant transaction costs are directly included in the current profit and loss; for other types of
financial assets the relevant transaction costs are included in the initial recognition amount. For accounts receivable
arising from the sale of products or provision of services that do not include or take into account significant financing
components the amount of consideration that the Group is expected to be entitled to receive shall be deemed as the
initial recognition amount.
(3) Classification and measurement of financial liabilities
The Group’s financial liabilities are classified upon initial recognition into: financial liabilities measured at fair value
through profit or loss and financial liabilities measured at amortized cost. For financial liabilities that are not
classified as measured at fair value through profit and loss relevant transaction costs are included in their initial
recognition amount.Financial liabilities measured at fair value through profit or loss
Financial liabilities at fair value through profit or loss include trading financial liabilities and financial liabilities
designated as fair value through profit or loss upon initial recognition. Such financial liabilities are subsequently
measured at fair value and gains or losses arising from changes in fair value as well as dividends and interest
expenses related to such financial liabilities are included in the current profits and losses.Financial liabilities measured at amortized cost
Other financial liabilities adopt the actual interest rate method and are subsequently measured at amortized cost.Gains or losses arising from derecognition or amortization are included in the current profits and losses.The difference between financial liabilities and equity instruments
Financial liabilities refer to liabilities that meet one of the following conditions:
1) Contractual obligation to deliver cash or other financial assets to other parties.
2) Contractual obligations to exchange financial assets or financial liabilities with other parties under potentially
adverse conditions.
3) Non-derivative contracts that must or can be settled with the enterprise’s own equity instruments in the future and
the enterprise will deliver a variable number of its own equity instruments according to the contract.
20CSG HOLDING CO. LTD. Financial Report of Semi-annual Report 2024
4) Derivative contracts that must or can be settled with the enterprise’s own equity instruments in the future except
for derivative contracts that exchange a fixed number of its own equity instruments for a fixed amount of cash or
other financial assets.Equity instruments refer to contracts that prove ownership of the remaining equity in the assets of an enterprise after
deducting all liabilities.If the Group cannot unconditionally avoid delivering cash or other financial assets to fulfil a contractual obligation
the contractual obligation meets the definition of a financial liability.If a financial instrument must be settled or can be settled with the Group’s own equity instruments it is necessary to
consider whether the Group’s own equity instruments used to settle the instrument are used as a substitute for cash or
other financial assets or to enable the holders of the instrument to hold the remaining interest in the issuer’s assets
after deducting all liabilities. If it is the former the instrument is a financial liability of the Group; if it is the latter the
instrument is an equity instrument of the Group.
(4) Fair value of financial instruments
Fair value is the price that a market participant would pay to sell an asset or transfer a liability in an orderly
transaction that occurred on the measurement date.The Group measures related assets or liabilities at fair value assuming that the orderly transaction to sell assets or
transfer liabilities is carried out in the principal market for related assets or liabilities. If no principal market exists
the Group assumes that the transaction is carried out in the most advantageous market for related assets or liabilities.The principal market (or the most advantageous market) is the transaction market which the Group can enter on the
measurement date. The Group adopts the assumptions used by market participants to maximize their economic
benefits when pricing the assets or liabilities.For financial assets or liabilities with an active market the Group adopts the quoted price in the active market to
determine its fair value. For a financial instrument without an active market the Group adopts valuation techniques to
determine its fair value.When measuring non-financial assets at fair value the Company considers the ability of market participants to use the
assets for the best use to generate economic benefits or to sell the assets to other market participants who can use the
assets for the best use to generate economic benefits.The Group adopts valuation techniques that are applicable to the current situation and with sufficient data available
and other information support and gives priority to the use of the related observable input value. It uses unobservable
input values only if the input value cannot be observed or is not feasible.The assets and liabilities measured or disclosed at fair value in the financial statements are in line with the lowest
level of the input values that is important to fair value measurement as a whole to determine the level of fair value.The first level of the input values means an unadjusted quoted price in an active market for the same assets and
liabilities available on the measurement date. The second level of the input values are the directly or indirectly
observable input values of related assets and liabilities except for the first level of the input values. The third level of
the input values are the unobservable input values of related assets and liabilities.On each balance sheet date the Group re-assesses the assets and liabilities that are continuously measured at fair
value in the financial statements so as to determine whether the conversion occurs at different levels of the fair value
measurement.
(5) Impairment of financial assets
Based on expected credit losses the Group performs impairment accounting on the following items and recognizes
loss provisions:
21CSG HOLDING CO. LTD. Financial Report of Semi-annual Report 2024
* Financial assets measured at amortized cost;
* Receivables and debt investments measured at fair value through other comprehensive income;
* Contract assets as defined in Accounting Standards for Business Enterprises No. 14 - Revenue;
* Lease receivables;
* Financial guarantee contracts (except those that are measured at fair value and whose changes are included in
current profits and losses the transfer of financial assets does not meet the conditions for derecognition or the
financial assets continue to be involved in the transferred financial assets).Measurement of expected credit losses
Expected credit losses refer to the weighted average of the credit losses of financial instruments with the risk of
default as the weight. Credit loss refers to the difference between all contractual cash flows receivable under the
contract and all cash flows expected to be received by the Group discounted at the original effective interest rate that
is the present value of all cash shortfalls.The Group considers reasonable and well-founded information about past events current conditions and predictions
of future economic conditions and weights the risk of default to calculate the difference between the cash flows
receivable under the contract and the cash flows expected to be received. The probability-weighted amount of the
present value is recognized as the expected credit loss.The Group measures the expected credit losses of financial instruments at different stages respectively. If the credit
risk of a financial instrument has not increased significantly since initial recognition it is in the first stage and the
Group will measure loss provisions based on the expected credit losses in the next 12 months; if the credit risk of a
financial instrument has increased significantly since initial recognition but has not yet occurred If the financial
instrument is credit-impaired it is in the second stage and the Group measures the loss provision based on the
expected credit losses for the entire duration of the instrument; if the financial instrument has been credit-impaired
since initial recognition it is in the third stage and the Group measures the expected credit losses for the entire
duration of the instrument. The expected credit losses during the duration are measured as loss provisions.For financial instruments with low credit risk on the balance sheet date the Group assumes that its credit risk has not
increased significantly since initial recognition and measures loss provisions based on expected credit losses within
the next 12 months.Lifetime expected credit losses refer to the expected credit losses caused by all possible default events that may occur
during the entire expected life of a financial instrument. Expected credit losses in the next 12 months refer to the
default events of financial instruments that may occur within 12 months after the balance sheet date (if the expected
duration of the financial instrument is less than 12 months the expected duration) Expected credit losses are part of
the expected credit losses throughout the entire duration.When measuring expected credit losses the maximum period that the Group needs to consider is the longest contract
period for which the enterprise faces credit risk (including consideration of renewal options).For financial instruments in the first and second stages and with lower credit risk the Group calculates interest
income based on its Carrying Amount before impairment provisions and actual interest rate. For financial instruments
in the third stage interest income is calculated based on its Carrying Amount minus the amortized cost and actual
interest rate after impairment provisions have been made.For receivables such as notes receivable accounts receivable receivable financing other receivables and contract
assets if the credit risk characteristics of a certain customer are significantly different from other customers in the
portfolio or the credit risk of the customer If the characteristics of the receivables change significantly the Group
shall make a separate provision for bad debts for the receivables. In addition to the receivables for which bad debt
provisions are made individually the Group divides the receivables into groups based on credit risk characteristics
and calculates bad debt provisions on a group basis.Notes receivable accounts receivable and contract assets
For notes receivable and accounts receivable regardless of whether there is a significant financing component the
Group always measures its loss provisions at an amount equivalent to the expected credit losses during the entire
22CSG HOLDING CO. LTD. Financial Report of Semi-annual Report 2024
duration.When the information on expected credit losses cannot be assessed at a reasonable cost for a single financial asset the
Group divides notes receivable and accounts receivable into groups based on credit risk characteristics and calculates
expected credit losses on the basis of the groups. The basis for determining the group is as follows:
A. Notes receivable
* Notes Receivable Portfolio 1: Bank Acceptance Bill
* Notes Receivable Portfolio 2: Commercial Acceptance Bill
B. Accounts receivable
* Accounts receivable portfolio 1: Non-related party customers
* Accounts Receivable Portfolio 2: Related Party Customers
For notes receivable and contract assets divided into portfolios the Group refers to historical credit loss experience
combined with current conditions and predictions of future economic conditions and calculates expected credit losses
through default risk exposure and the expected credit loss rate throughout the duration.For accounts receivable divided into portfolios the Group refers to historical credit loss experience combined with
current conditions and predictions of future economic conditions to prepare a comparison table between the
aging/overdue days of accounts receivable and the expected credit loss rate for the entire duration. Calculate expected
credit losses. The aging of accounts receivable is calculated from the date of confirmation/the number of overdue
days is calculated from the date of expiration of the credit period.Other receivables
The Group divides other receivables into several combinations based on credit risk characteristics and calculates
expected credit losses on the basis of the combinations. The basis for determining the combinations is as follows:
* Other receivables portfolio 1: Amounts due from non-related parties
* Other receivables portfolio 2: Amounts due from related parties
For other receivables classified into portfolios the Group calculates expected credit losses through the default risk
exposure and the expected credit loss rate within the next 12 months or throughout the duration. For other receivables
grouped by aging the aging is calculated from the date of confirmation.Debt investment other debt investment
For debt investments and other debt investments the Group calculates expected credit based on the nature of the
investment and various types of counterparties and risk exposures through default risk exposure and expected credit loss
rate within the next 12 months or throughout the duration.Assessment of significant increase in credit risk
The Group compares the risk of default of a financial instrument on the balance sheet date with the risk of default on the
initial recognition date to determine the relative change in the default risk of the financial instrument during its expected
duration to assess whether the credit risk of the financial instrument has increased significantly since its initial
recognition.When determining whether the credit risk has increased significantly since initial recognition the Group considers
reasonable and supportable information including forward-looking information that can be obtained without
unnecessary additional cost or effort. Information considered by the Group includes:
* The debtor fails to pay the principal and interest on the due date of the contract;
23CSG HOLDING CO. LTD. Financial Report of Semi-annual Report 2024
* An actual or expected significant deterioration in the external or internal credit rating (if any) of the financial
instrument;
* The actual or expected serious deterioration in the debtor’s operating results;
* Existing or expected changes in the technological market economic or legal environment will have a significant
adverse impact on the debtor’s ability to repay the Group’s debt.Depending on the nature of the financial instrument the Group assesses whether there is a significant increase in credit
risk on the basis of a single financial instrument or a combination of financial instruments. When evaluating based on a
portfolio of financial instruments the Group can classify financial instruments based on common credit risk
characteristics such as overdue information and credit risk ratings.If it is overdue for more than 30 days the Group determines that the credit risk of the financial instrument has increased
significantly.The Group believes that financial assets default in the following circumstances:
* It is unlikely that the borrower will pay in full what it owes the Group an assessment that does not take into
account recourse actions by the Group such as the realization of collateral (if held);
* Financial assets are overdue for more than 90 days.Credit-impaired financial assets
The Group assesses whether credit impairment has occurred on financial assets measured at amortized cost and debt
investments measured at fair value through other comprehensive income on the balance sheet date. When one or more
events occur that have an adverse impact on the expected future cash flows of a financial asset the financial asset
becomes a credit-impaired financial asset. Evidence that a financial asset has been credit-impaired includes the
following observable information:
* The issuer or debtor encounters significant financial difficulties;
* The debtor breaches the contract such as default or overdue payment of interest or principal;
* The Group grants the debtor concessions that it would not have made under any other circumstances due to
economic or contractual considerations related to the debtor’s financial difficulties;
* the likelihood that the debtor will go bankrupt or undergo other financial reorganization;
* Financial difficulties of the issuer or debtor result in the disappearance of an active market for the financial asset.Presentation of expected credit loss provisions
In order to reflect changes in the credit risk of financial instruments since initial recognition the Group re-measures
expected credit losses on each balance sheet date and the resulting increase or reversal of loss provisions shall be
accounted for as impairment losses or gains into current profit and loss. For financial assets measured at amortized
cost the loss provision is reduced by the book value of the financial assets listed in the balance sheet; for debt
investments measured at fair value through other comprehensive income the Group’s other comprehensive income.The loss provision is recognized in income and does not deduct the book value of the financial asset.Write off
If the Group no longer reasonably expects that the contractual cash flows of a financial asset can be fully or partially
recovered it will directly write down the Carrying Amount of the financial asset. Such a write-down constitutes the
derecognition of the relevant financial asset. This situation usually occurs when the Group determines that the debtor
does not have the assets or sources of income to generate sufficient cash flow to repay the amount that will be written
down. However in accordance with the Group’s procedures for recovering due amounts financial assets that are
written down may still be affected by execution activities.If a financial asset that has been written down is later recovered the reversal of the impairment loss will be included
in the profit and loss of the current period of recovery.
(6) Financial asset transfer
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The transfer of financial assets refers to the transfer or delivery of financial assets to another party (the transfer-in
party) other than the issuer of the financial assets.If the Group has transferred substantially all risks and rewards of ownership of a financial asset to the transferee the
financial asset shall be derecognised; if the Group has retained substantially all risks and rewards of ownership of the
financial asset the financial asset shall not be derecognised.If the Group neither transfers nor retains substantially all the risks and rewards of ownership of a financial asset it
shall handle the following situations respectively: if it gives up control of the financial asset the financial asset shall
be derecognised and the assets and liabilities incurred shall be recognized; if it has not given up control of the
financial asset If the financial asset is controlled the relevant financial assets shall be recognized to the extent of its
continued involvement in the transferred financial assets and the relevant liabilities shall be recognized accordingly.
(7) Offset of financial assets and financial liabilities
When the Group has the legal right to offset the recognized financial assets and financial liabilities and is currently
able to enforce such legal rights and the Group plans to settle on a net basis or to realize the financial assets and pay
off the financial liabilities at the same time the financial assets and financial liabilities will be presented in the
balance sheet at the amount after offsetting each other. Otherwise financial assets and financial liabilities are
presented separately in the balance sheet and are not offset against each other.
11. Inventories
(1) Inventory classification
The Group’s inventories are divided into raw materials work in progress inventory goods and turnover materials.
(2) Valuation method for issued inventory
The Group’s inventories are valued at actual cost when acquired. Raw materials inventory etc. are priced using the
weighted average method when shipped.
(3) Methods of accrual and provision for inventories
On the balance sheet date inventories are measured at the lower of cost and net realizable value. When the net
realizable value is lower than the cost a provision for inventory depreciation is made.Net realizable value is the estimated selling price of the inventory minus the estimated costs to be incurred upon
completion estimated selling expenses and related taxes. When determining the net realizable value of inventories it
is based on the conclusive evidence obtained and the purpose of holding the inventories and the impact of events after
the balance sheet date are also considered.The Group usually accrues inventory depreciation provisions based on individual inventory items. For inventories
with large quantities and low unit prices inventory depreciation provisions are made according to the inventory
category.On the balance sheet date if the factors that previously caused the inventory value to be written down have
disappeared the inventory depreciation provision shall be reversed within the amount originally accrued.
(4) Inventory system
The Group adopts the perpetual inventory system.
25CSG HOLDING CO. LTD. Financial Report of Semi-annual Report 2024
12. Long-term investment
Long-term equity investments include equity investments in subsidiaries joint ventures and associates. The associates
of the Group are those that the Group can exert significant influence on the invested units.
(1) Initial measurement of investment cost
Long-term equity investments resulting from business combinations: For long-term equity investments obtained from
business combinations under common control the share of the book value of the owner’s equity of the merged party
in the consolidated financial statements of the ultimate controlling party will be used as the investment cost on the
date of merger ; not under the same control For long-term equity investments obtained through a business merger the
investment cost of the long-term equity investment shall be based on the merger cost.For long-term equity investments obtained by other means: for long-term equity investments obtained by paying cash
the actual purchase price paid will be used as the initial investment cost; for long-term equity investments obtained by
issuing equity securities the fair value of the equity securities issued will be used as the initial investment cost.
(2) Subsequent measurement and profit and loss recognition methods
Investments in subsidiaries are accounted for using the cost method unless the investment qualifies as held for sale;
investments in associates and joint ventures are accounted for using the equity method.For long-term equity investments accounted for using the cost method in addition to the actual price paid when
acquiring the investment or the cash dividends or profits that have been declared but not yet distributed included in
the consideration the cash dividends or profits declared to be distributed by the investee shall be recognized as
investment income for current profit and loss.For long-term equity investments accounted for using the equity method if the initial investment cost is greater than
the fair value share of the investee’s identifiable net assets that should be enjoyed at the time of investment the
investment cost of the long-term equity investment will not be adjusted; if the initial investment cost is less than the
investment the investee’s share of the identifiable net assets should be enjoyed If the fair value share of net assets is
identified the book value of the long-term equity investment will be adjusted and the difference will be included in
the current profit and loss of the investment.When accounting using the equity method investment income and other comprehensive income are recognized
respectively according to the share of the net profit or loss and other comprehensive income realized by the investee
that should be enjoyed or shared and the book value of the long-term equity investment is adjusted at the same time;
in accordance with the declaration of the investee The portion of the distributed profits or cash dividends that should
be calculated will reduce the book value of the long-term equity investment accordingly; for other changes in the
owner’s equity of the investee other than net profit and loss other comprehensive income and profit distribution the
book value of the long-term equity investment will be adjusted and Included in capital reserves (other capital
reserves). When confirming the share of the investee’s net profits and losses the fair value of the investee’s
identifiable assets when the investment is obtained is used as the basis and in accordance with the Group’s
accounting policies and accounting periods the net profit of the investee is determined. Make adjustments and
confirm.If it is possible to exert significant influence on the investee or implement joint control but does not constitute control
due to additional investment or other reasons on the conversion date the sum of the fair value of the original equity
plus the cost of the new investment will be used as the initial investment cost to be accounted for by the equity
method. If the original equity is classified as a non-trading equity instrument investment measured at fair value and its
changes are included in other comprehensive income the related cumulative fair value changes originally included in
other comprehensive income will be transferred to retained earnings when it is accounted for under the equity method.If the joint control or significant influence on the invested unit is lost due to the disposal of part of the equity
investment or other reasons the remaining equity after the disposal shall be changed to the Accounting Standards for
Business Enterprises No. 22 - Financial Instrument Recognition and Significant Influence on the date of loss of joint
control or significant influence. Measurement is used for accounting treatment and the difference between the fair
26CSG HOLDING CO. LTD. Financial Report of Semi-annual Report 2024
value and the book value is included in the current profit and loss. Other comprehensive income recognized due to the
use of the equity method for accounting in the original equity investment will be accounted for on the same basis as
the investee’s direct disposal of relevant assets or liabilities when the equity method is terminated; other changes in
owner’s equity related to the original equity investment Transferred to current profit and loss.If the control over the invested unit is lost due to the disposal of part of the equity investment or other reasons and
the remaining equity after the disposal can jointly control or exert significant influence on the invested unit it shall be
accounted for according to the equity method and the remaining equity shall be regarded as owned. Adjustments will
be made using the equity method upon acquisition; if the remaining equity after disposal cannot jointly control or
exert significant influence on the invested unit the relevant provisions of Accounting Standards for Business
Enterprises No. 22 - Recognition and Measurement of Financial Instruments will be followed. Accounting treatment
the difference between its fair value and book value on the date of loss of control is included in the current profit and
loss.If the Group’s shareholding ratio decreases due to capital increase by other investors thereby losing control but it can
exercise joint control or exert significant influence on the invested unit the Group’s share of the invested unit due to
the capital increase shall be confirmed based on the new shareholding ratio. The difference between the share of net
assets increased due to share expansion and the original book value of the long-term equity investment corresponding
to the decrease in shareholding ratio that should be carried forward is included in the current profit and loss; then the
new shareholding ratio is deemed to have been calculated since the investment was obtained. That is adjustments are
made using the equity method of accounting.Unrealized gains and losses from internal transactions between the Group and its associates and joint ventures are
calculated based on the shareholding ratio and are attributable to the Group and investment gains and losses are
recognized on an offsetting basis. However if the unrealized internal transaction losses between the Group and the
investee are impairment losses on the transferred assets they will not be offset.
(3) Basis for determining joint control and significant influence on the invested unit
Joint control refers to the shared control over an arrangement in accordance with relevant agreements and the
relevant activities of the arrangement must be decided only with the unanimous consent of the participants sharing
control rights. When judging whether there is joint control first judge whether the arrangement is collectively
controlled by all participants or a combination of participants and secondly whether decisions on activities related to
the arrangement must be unanimously agreed upon by the participants who collectively control the arrangement. If all
participants or a group of participants must act in concert to determine the relevant activities of an arrangement all
participants or a group of participants are considered to collectively control the arrangement; if there are two or more
combinations of participants that can collectively Control of an arrangement does not constitute joint control. When
determining whether joint control exists the protective rights enjoyed are not taken into account.Significant influence means that the investor has the power to participate in decision-making on the financial and
operating policies of the investee but it is not able to control or jointly control the formulation of these policies with
other parties. When determining whether it can exert a significant influence on the investee it is considered that the
investor’s direct or indirect holdings of voting shares in the investee and the current executable potential voting rights
held by the investor and other parties are assumed to be converted into control over the investee. The impact arising
from the acquisition of equity includes the impact of current convertible warrants share options and convertible
corporate bonds issued by the investee.When the Group directly or indirectly through subsidiaries owns more than 20% (inclusive) but less than 50% of the
voting shares of the invested unit it is generally considered to have a significant influence on the invested unit unless
there is clear evidence that this situation It is unable to participate in the production and operation decisions of the
invested unit and does not have a significant impact; when the Group owns less than 20% (exclusive) of the voting
shares of the invested unit it is generally not considered to have a significant impact on the invested unit unless there
is clear evidence that this Under such circumstances we can participate in the production and operation decisions of
the invested unit and have a significant influence.
(4) Impairment testing method and impairment provision accrual method
For investments in subsidiaries associates and joint ventures please refer to Note for the method of calculating asset
27CSG HOLDING CO. LTD. Financial Report of Semi-annual Report 2024
impairment.
13. Investment properties
Investment properties is property held to earn rentals or for capital appreciation or both. The Group’s investment
properties include leased land use rights land use rights held and prepared to be transferred after appreciation and
leased buildings.There is an active real estate trading market in the location where the Group’s investment properties is located and
the Group is able to obtain market prices and other relevant information of similar or similar real estate from the real
estate trading market so that it can make a reasonable estimate of the fair value of the investment real estate.Therefore the Group adopts the fair value model for subsequent measurement of investment real estate and changes
in fair value through profit and loss.When determining the fair value of investment properties refer to the current market price of the same or similar real
estate in the active market; if the current market price of the same or similar real estate cannot be obtained refer to
the latest transaction price of the same or similar real estate in the active market and Consider the transaction
situation transaction date location and other factors to make a reasonable estimate of the fair value of the investment
property; or determine its fair value based on the expected future rental income and the present value of the relevant
cash flows.In rare cases if there is evidence that the Group acquires an investment property that is not under construction for the
first time (or an existing property becomes an investment property for the first time after completing construction or
development activities or changing its use) the Group will If the fair value of investment real estate cannot be
obtained continuously and reliably the investment real estate will be measured using the cost model until disposal
and it is assumed that there is no residual value.The difference between the disposal income from the sale transfer scrapping or damage of investment properties
after deducting its book value and relevant taxes is included in the current profit and loss.
14. Fixed assets
(1) Fixed asset recognition conditions
The Group’s fixed assets refer to tangible assets held for the production of goods provision of labour services
leasing or operation and management and with a useful life of more than one accounting year.A fixed asset can only be recognized when the economic benefits related to the fixed asset are likely to flow into the
enterprise and the cost of the fixed asset can be measured reliably.The Group’s fixed assets are initially measured based on the actual cost when acquired.Subsequent expenditures related to fixed assets shall be included in the cost of fixed assets when the economic
benefits related to them are likely to flow into the Group and their costs can be reliably measured; daily repair costs of
fixed assets that do not meet the conditions for subsequent expenditures for capitalization of fixed assets shall be
included in the cost of fixed assets when the economic benefits related to them are likely to flow into the Group and
their costs can be measured reliably. When incurred it shall be included in the current profit and loss or included in
the cost of related assets according to the beneficiary object. For the replaced part its book value is derecognized.
(2) Depreciation methods
Depreciation methods for various types of fixed assets Fixed assets are depreciated using the straight-line method
based on their costs less estimated residual values over their estimated useful lives Depreciation begins when a fixed
asset reaches its intended usable condition and depreciation stops when it is derecognized or classified as a non-
current asset held for sale. Without considering impairment provisions the Group determines the annual depreciation
rates of various types of fixed assets based on fixed asset category estimated service life and estimated residual value
28CSG HOLDING CO. LTD. Financial Report of Semi-annual Report 2024
as follows:
Depreciation Annual depreciation
Category Useful lives (years) Residual rate%
methods rate %
The life average
Buildings 20-35 years 5% 4.75% to 2.71%
method
Machinery The life average
8-20 years 5% 11.88% to 4.75%
equipment method
Transportation and The life average
5-8 years 0 20% to 12.50%
Others method
Among them for fixed assets for which impairment provisions have been made the depreciation rate should also be
calculated and determined by deducting the accumulated amount of fixed asset impairment provisions.
(3) Note for the impairment testing method and impairment provision accrual method for fixed assets.
(4) At the end of each year the Group reviews the useful life estimated net residual value and depreciation method of
fixed assets.If there is a difference between the estimated useful life and the original estimate the useful life of the fixed assets
will be adjusted; if there is a difference between the expected net residual value and the original estimate the
estimated net residual value will be adjusted.
(5) Fixed asset disposal
When a fixed asset is disposed of or no economic benefits are expected to be generated through use or disposal the
fixed asset is derecognised. The amount of disposal income from the sale transfer scrapping or damage of fixed
assets after deducting their book value and relevant taxes is included in the current profit and loss.
15. Construction in progress
The cost of the Group’s construction-in-progress is determined based on actual project expenditures including
various necessary project expenditures incurred during the construction period borrowing costs that should be
capitalized before the project reaches its intended usable state and other related expenses.Construction in progress is transferred to fixed assets when it reaches the intended usable state. The criteria for
judging the intended usable status should meet one of the following conditions: The physical construction (including
installation) of the fixed assets has been completed or substantially completed trial production or trial operation has
been carried out and the results show that the assets can operate normally. Or it can produce stably or the trial
operation results show that it can operate normally. The amount of expenditure on the fixed assets constructed is very
small or almost no longer occurs and the fixed assets purchased have met the design or contract requirements or are
basically consistent with the design or contract requirements.Note for the method of accruing asset impairment for construction in progress.The Group’s engineering materials refer to various materials prepared for projects under construction including
engineering materials equipment that has not yet been installed and tools and equipment prepared for production.The purchased engineering materials are measured at cost the engineering materials received are transferred to the
project under construction and the remaining engineering materials after the completion of the project are transferred
to inventory.Note for the asset impairment method of construction materials.In the balance sheet the closing balance of construction materials is listed in the “Construction in Progress” item.
29CSG HOLDING CO. LTD. Financial Report of Semi-annual Report 2024
16. Borrowing costs
(1) Recognition principles for capitalization of borrowing costs
If the borrowing costs incurred by the Group are directly attributable to the acquisition construction or production of
assets that meet the capitalization conditions they shall be capitalized and included in the cost of the relevant assets;
other borrowing costs shall be recognized as expenses based on the amount incurred when incurred and shall be
included in the cost of the relevant assets for current profit and loss. Borrowing costs will begin to be capitalized if
they meet the following conditions at the same time:
1) Asset expenditures have occurred. Asset expenditures include expenditures in the form of cash payments transfers
of non-cash assets or interest-bearing debts for the acquisition construction or production of assets that meet
capitalization conditions;
2) The borrowing costs have been incurred;
3) The necessary purchase construction or production activities to bring the asset to its intended usable or saleable
state have begun.
(2) Borrowing cost capitalization period
When the assets purchased constructed or produced by the Group that meet the capitalization conditions are ready for
intended use or sale the capitalization of borrowing costs will cease. Borrowing costs incurred after the assets that
meet the capitalization conditions reach the intended usable or saleable state are recognized as expenses based on the
amount incurred when incurred and included in the current profit and loss.If an asset that meets the capitalization conditions is abnormally interrupted during the acquisition construction or
production process and the interruption lasts for more than 3 months the capitalization of borrowing costs will be
suspended; the borrowing costs during the normal interruption period will continue to be capitalized.
(3) Calculation method of capitalization rate of borrowing costs and capitalization amount
The interest expenses actually incurred on special borrowings in the current period minus the interest income from
unused borrowed funds deposited in banks or investment income from temporary investments are capitalized;
general borrowings are capitalized based on the excess of the accumulated asset expenditures over the special
borrowings. The capitalization amount is determined by multiplying the weighted average of asset expenditures by
the capitalization rate of the general borrowings occupied. The capitalization rate is calculated and determined based
on the weighted average interest rate of general borrowings.During the capitalization period all exchange differences on special foreign currency borrowings are capitalized;
exchange differences on general foreign currency borrowings are included in the current profits and losses.
17. Intangible assets
(1) Useful life and its determination basis estimation amortization method or review procedure
The Group’s intangible assets include land use rights patent rights and proprietary technologies mineral mining
rights and others.Intangible assets are initially measured based on cost and their service life is analysed and judged when the
intangible assets are acquired. If the service life is limited from the time when the intangible asset becomes available
for use an amortization method that can reflect the expected realization method of the economic benefits related to
the asset shall be used and amortization will be amortized within the estimated useful life; if the expected realization
method cannot be reliably determined Amortization is carried out using the straight-line method; intangible assets
with indefinite service life are not amortized.
30CSG HOLDING CO. LTD. Financial Report of Semi-annual Report 2024
The amortization method of intangible assets with limited useful life is as follows:
Useful lives Amortization
Category Basis for determining service life Notes
(years) method
Straight-line
Land use rights 30-70 years Warrant
Depreciation
Patent rights and
Straight-line
proprietary 5-20 years Estimated useful life
Depreciation
technologies
Straight-line
Exploitation rights 16-20 years Warrants expected income period
Depreciation
Straight-line
Others 2-10 years Estimated useful life
Depreciation
At the end of each year the Group reviews the useful life and amortization method of intangible assets with limited
service life. If it is different from the previous estimate the original estimate is adjusted and treated as a change in
accounting estimate.If it is expected that an intangible asset will no longer bring future economic benefits to the enterprise on the balance
sheet date the entire book value of the intangible asset will be transferred to the current profit and loss.Note for the method of impairment for intangible assets.
(2) The scope of R&D expenditure collection and the related accounting treatment
The Group's R&D expenditures are expenditures directly related to the company's R&D activities including R&D
staff salaries direct investment costs depreciation expenses and long-term deferred expenses design expenses
equipment commissioning expenses intangible asset amortization expenses entrusted external research and
development expenses other expenses etc. The wages of R&D personnel are included in R&D expenditures based on
project working hours. Equipment production lines and sites shared between R&D activities and other production
and operation activities are included in R&D expenses according to the proportion of working hours and the
proportion of area.The Group divides expenditures on internal research and development projects into expenditures in the research phase
and expenditures in the development phase.Expenditures in the research stage are included in the current profits and losses when incurred.Expenditures in the development stage can only be capitalized if they meet the following conditions: it is technically
feasible to complete the intangible asset so that it can be used or sold; there is the intention to complete the intangible
asset and use or sell it; the intangible asset The way to generate economic benefits includes being able to prove that
there is a market for the products produced using the intangible assets or that the intangible assets themselves have a
market. If the intangible assets will be used internally they can prove their usefulness; there are sufficient technical
financial and other resource supports in order to complete the development of the intangible asset and have the
ability to use or sell the intangible asset; the expenditures attributable to the development stage of the intangible asset
can be measured reliably. Development expenditures that do not meet the above conditions are included in the current
profit and loss.The Group’s research and development projects will enter the development stage after meeting the above conditions
and passing technical feasibility and economic feasibility studies to form a project.Capitalized expenditures in the development phase are listed as development expenditures on the balance sheet and
are converted into intangible assets from the date the project reaches its intended use.Capitalization conditions for specific R&D projects:
Expenditures in the research stage are included in the current profits and losses when incurred. Before large-scale
31CSG HOLDING CO. LTD. Financial Report of Semi-annual Report 2024
production expenditures related to the design and testing phase of the final application of the production process are
expenditures in the development phase. If the following conditions are met at the same time they will be capitalized:
·The development of the production process has been fully demonstrated by the technical team;
· Management has approved the budget for production process development;
·The research and analysis of the preliminary market research shows that the products produced by the production
process have market promotion capabilities;
·Have sufficient technical and financial support to carry out production process development activities and
subsequent large-scale production; and the expenditure on production process development can be reliably collected.If it is impossible to distinguish between expenditures in the research stage and expenditures in the development stage
all R&D expenditures incurred will be included in the current profit and loss.
18. Long-term assets impairment
For subsidiaries’ long-term investments fixed assets construction in process right-of-use assets intangible assets
goodwill etc. (excluding inventories investment properties measured according to the fair value model deferred tax
assets and financial assets) value determined as follows:
On the balance sheet date it is judged whether there are any signs of possible impairment of the assets. If there are
signs of impairment the Group will estimate its recoverable amount and conduct an impairment test. Goodwill
formed due to business combinations intangible assets with indefinite useful lives and intangible assets that have not
yet reached a usable state are subject to impairment testing every year regardless of whether there are signs of
impairment.The recoverable amount is determined based on the higher of the asset’s fair value less disposal costs and the present
value of the asset’s expected future cash flows. The Group estimates the recoverable amount on the basis of a single
asset; if it is difficult to estimate the recoverable amount of an individual asset the Group determines the recoverable
amount of the asset group based on the asset group to which the asset belongs. The identification of an asset group is
based on whether the main cash inflow generated by the asset group is independent of the cash inflows of other assets
or asset groups.When the recoverable amount of an asset or asset group is lower than its book value the Group will write down its
book value to the recoverable amount and the amount of the write-down will be included in the current profit and
loss and the corresponding asset impairment provision will be made.As far as the impairment test of goodwill is concerned the book value of goodwill formed due to a business
combination shall be apportioned to the relevant asset group in a reasonable manner from the date of purchase; if it is
difficult to apportion it to the relevant asset group it shall be apportioned to the relevant asset group. Related asset
group combinations. The relevant asset group or asset group combination is an asset group or asset group
combination that can benefit from the synergy effects of the business combination and is no larger than the reporting
segment determined by the group.During impairment testing if there are signs of impairment in an asset group or combination of asset groups related to
goodwill first conduct an impairment test on the asset group or combination of asset groups that does not include
goodwill calculate the recoverable amount and confirm the corresponding impairment. Then conduct an impairment
test on the asset group or asset group combination containing goodwill and compare its book value with the
recoverable amount. If the recoverable amount is lower than the book value the impairment loss of goodwill is
recognized.Once the asset impairment loss is recognized it will not be reversed in subsequent accounting periods.
32CSG HOLDING CO. LTD. Financial Report of Semi-annual Report 2024
19. Long-term prepaid expenses
The long-term deferred expenses incurred by the Group are measured at actual cost and amortized evenly over the
expected beneficial period. For long-term deferred expense items that cannot benefit future accounting periods their
amortized value shall be fully included in the current profit and loss.
20. Employee benefits
(1) Accounting for Short-term compensation
During the accounting period when employees provide services the Group recognizes the actual employee wages
bonuses social insurance premiums such as medical insurance premiums work-related injury insurance premiums
maternity insurance premiums and housing provident funds paid for employees based on prescribed standards and
proportions as liabilities and included in the current profit and loss or related asset costs.
(2) Accounting for Post-employment benefits
Post-employment benefit plans include defined contribution plans and defined benefit plans. Among them a defined
contribution plan refers to a post-employment benefit plan in which the enterprise no longer bears further payment
obligations after depositing a fixed fee into an independent fund; a defined benefit plan refers to a post-employment
benefit plan other than a defined contribution plan.Defined contribution plans
Defined contribution plans include basic pension insurance unemployment insurance etc.During the accounting period when employees provide services the deposit amount payable calculated according to
the defined contribution plan is recognized as a liability and included in the current profit and loss or related asset
costs.
(3) Accounting for Termination benefits
If the Group provides dismissal benefits to employees the employee compensation liabilities arising from the
dismissal benefits will be recognized at the earliest of the following two times and included in the current profit and
loss: When the Group cannot unilaterally withdraw the dismissal benefits provided due to the termination of labour
relations plan or layoff proposal; When the Group recognizes costs or expenses related to restructuring involving
payment of termination benefits.
(4) Accounting for Other long-term benefits
Other long-term employee benefits provided by the Group to employees that meet the conditions of a defined
contribution plan will be handled in accordance with the above-mentioned relevant regulations on defined
contribution plans. If it is in compliance with the defined benefit plan it shall be handled in accordance with therelevant provisions on the defined benefit plan mentioned above but the “changes caused by the remeasurement ofthe net liabilities or net assets of the defined benefit plan” in the relevant employee compensation costs shall be
included in the current profit and loss or related Asset cost.
21. Estimated liabilities
If the obligations related to contingencies meet the following conditions at the same time the Group will recognize
them as estimated liabilities:
(1) The obligation is a current obligation borne by the Group;
(2) The performance of this obligation is likely to result in the outflow of economic benefits from the Group;
33CSG HOLDING CO. LTD. Financial Report of Semi-annual Report 2024
(3) The amount of the obligation can be measured reliably.
Estimated liabilities are initially measured based on the best estimate of the expenditure required to fulfil the relevant
current obligations and factors such as risks uncertainties and time value of money related to contingencies are
comprehensively considered. If the time value of money has a significant impact the best estimate is determined by
discounting the relevant future cash outflows. The Group reviews the book value of estimated liabilities on the
balance sheet date and adjusts the book value to reflect the current best estimate.If all or part of the expenses required to settle the recognized estimated liabilities are expected to be compensated by a
third party or other parties the compensation amount can only be recognized separately as an asset when it is
basically certain that it will be received. The amount of compensation recognized shall not exceed the book value of
the liability recognized.
22. Revenue
(1) General principles
The Group recognizes revenue when it fulfils its performance obligations in the contract that is when the customer
obtains control of the relevant goods or services.If the contract contains two or more performance obligations the Group will allocate the transaction price to each
individual performance obligation based on the relative proportion of the stand-alone selling price of the goods or
services promised by each individual performance obligation on the contract commencement date. Revenue is
measured at the transaction price of each individual performance obligation.When one of the following conditions is met the performance obligation is performed within a certain period of time;
otherwise the performance obligation is performed at a certain point in time:
1) When the Group performs the contract the customer obtains and consumes the economic benefits brought by the
Group’s performance.
2) Customers can control the goods under construction during the performance of the contract by the Group.
3) The goods produced by the Group during the performance of the contract have irreplaceable uses and the Group
has the right to collect payment for the cumulative performance part completed so far during the entire contract
period.For performance obligations fulfilled within a certain period of time the Group recognizes revenue based on the
performance progress within that period of time. When the progress of contract performance cannot be reasonably
determined if the costs incurred by the Group are expected to be compensated revenue will be recognized based on
the amount of costs incurred until the progress of contract performance can be reasonably determined.For performance obligations fulfilled at a certain point in time the Group recognizes revenue at the point when the
customer obtains control of the relevant goods or services. When determining whether a customer has obtained
control of goods or services the Group will consider the following signs:
1) The Group has the current right to receive payment for the goods or services that is the customer has current
payment obligations for the goods.
2) The Group has transferred the legal ownership of the goods to the customer which means that the customer
already owns the legal ownership of the goods.
3) The Group has physically transferred the goods to the customer that is the customer has physically taken
possession of the goods.
34CSG HOLDING CO. LTD. Financial Report of Semi-annual Report 2024
4) The Group has transferred the main risks and rewards of ownership of the commodity to the customer that is the
customer has obtained the main risks and rewards of ownership of the commodity.
5) The customer has accepted the goods or services.
6) Other signs indicating that the customer has obtained control of the product.
(2) Specific method
The Group’s revenue mainly comes from the following business types: sales of products external provision of
consulting and processing services.Selling goods
Products sold The Group produces and sells float glass photovoltaic glass engineering glass solar industry related
products electronic glass and display device etc.For domestic sales the Group transports the products to the agreed delivery location in accordance with the
agreement or picks it up by the buyer. Revenue is recognized after the buyer confirms receipt or pick-up.For export sales the Group recognises the revenue when it finished clearing goods for export and deliver the goods
on board the vessel or when the goods are delivered to a certain place specified in the contract.For solar energy and other industries’ photovoltaic power generation revenue the Group recognizes the electricity
when it is supplied to the provincial power grid company where each electric field is located uses the settled
electricity volume confirmed by both parties as the electricity sales for that month and uses the on-grid electricity
price approved by the National Development and Reform Commission or the electricity price agreed in the contract
as the sales unit price.The credit periods granted by the Group to customers in various industries are consistent with the practices of various
industries and there is no significant financing component.The Group provides product quality assurance for the products sold and recognizes corresponding estimated
liabilities.The Group does not provide any additional services or additional quality assurance so the product quality
assurance does not constitute a separate performance obligation.Glass products with sales return clauses revenue recognition is limited to the amount of accumulated recognized
revenue that is unlikely to result in a significant reversal. The Group recognizes liabilities based on the expected
return amount and at the same time recognizes the balance as an asset based on the book value of the goods expected
to be returned when the goods are transferred minus the expected costs of recovering the goods (including the
impairment of the value of the returned goods).Provide consulting and processing services
The Group provides external consulting and processing services because customers obtain and consume the economic
benefits brought by the company’s performance of the contract while the company performs the contract. The Group
recognizes revenue based on the progress of contract performance. The progress of contract performance is
determined based on the proportion of costs incurred to the estimated total costs. On the balance sheet date the Group
re-estimates the performance progress of completed services to reflect changes in performance.When the Group recognizes revenue based on the progress of completed services the portion for which the Group has
obtained the unconditional right to receive payment is recognized as accounts receivable and the remaining portion is
recognized as contract assets. Accounts receivable and contract assets are recognized as expected credit losses. Loss
provisions are recognized as the basis; if the contract price received or receivable by the Group exceeds the labour
services completed the excess will be recognized as contract liabilities. The Group’s contract assets and contract
liabilities under the same contract are presented on a net basis.
35CSG HOLDING CO. LTD. Financial Report of Semi-annual Report 2024
23. Contract costs
Contract costs include incremental costs incurred to obtain the contract and contract performance costs.The incremental costs incurred to obtain the contract refer to costs that the company would not have incurred if it had
not obtained the contract (such as sales commissions etc.). If the cost is expected to be recovered the company will
recognize it as the contract acquisition cost and as an asset. Other expenses incurred by the Company to obtain the
contract except for the incremental costs expected to be recovered are included in the current profits and losses when
incurred.If the cost incurred to fulfil the contract does not fall within the scope of other accounting standards for enterprises
such as inventory and meets the following conditions the company will recognize it as an asset as the contract
performance cost:
1) The cost is directly related to a current or expected contract including direct labour direct materials
manufacturing overhead (or similar expenses) costs clearly borne by the customer and other costs incurred solely
because of the contract;
2) This cost increases the Company’s resources for fulfilling its performance obligations in the future;
3) The cost is expected to be recovered.
Assets recognized for contract acquisition costs and assets recognized for contract performance costs (hereinafter
referred to as “assets related to contract costs”) are amortized on the same basis as the recognition of revenue from
goods or services related to the assets and included in the current profit and loss.When the book value of assets related to contract costs is higher than the difference between the following two items
the company makes impairment provisions for the excess and recognizes it as asset impairment losses:
1) The remaining consideration that the company expects to obtain from the transfer of goods or services related to
the asset;
2) The estimated cost that will be incurred to transfer the relevant goods or services.
24. Government subsidies
Government subsidies are recognized when the conditions attached to the government subsidies are met and can be
received.Government subsidies for monetary assets are measured based on the amount received or receivable. Government
subsidies for non-monetary assets are measured at fair value; if the fair value cannot be obtained reliably they are
measured at a nominal amount of 1 yuan.Government subsidies related to assets refer to government subsidies obtained by the Group for the purchase
construction or other formation of long-term assets; in addition government subsidies related to income are regarded
as government subsidies.For government documents that do not clearly stipulate the subsidy objects and can form long-term assets the part of
the government subsidy corresponding to the asset value shall be regarded as the government subsidy related to the
asset and the remaining part shall be regarded as the government subsidy related to income; if it is difficult to
distinguish the government subsidy shall be regarded as the government subsidy related to the asset. The whole is
regarded as a government subsidy related to income.Government subsidies related to assets are recognized as deferred income and are included in profits and losses in
instalments according to a reasonable and systematic method during the use period of the relevant assets. If
government subsidies related to income are used to compensate for relevant costs or losses that have already occurred
36CSG HOLDING CO. LTD. Financial Report of Semi-annual Report 2024
they will be included in the current profits and losses; if they are used to compensate for relevant costs or losses in
subsequent periods they will be included in deferred income and will be included in the relevant costs or losses. The
loss is included in the current profit and loss during the period during which the loss is recognized. Government
subsidies measured according to the nominal amount are directly included in the current profit and loss. The Group
adopts a consistent approach to the same or similar government subsidy business.Government subsidies related to daily activities shall be included in other income according to the economic business
essence. Government subsidies unrelated to daily activities are included in non-operating income.When a confirmed government subsidy needs to be returned if the book value of the relevant assets is offset at the
time of initial recognition the book value of the assets is adjusted; if there is a balance of relevant deferred income
the Carrying Amount of the relevant deferred income is offset and the excess is included in the current profit and loss;
in other cases it will be directly included in the current profit and loss.
25. Deferred tax assets and deferred tax liabilities
Income tax includes current income tax and deferred income tax. Except for adjustments to goodwill arising from
business combinations or deferred income taxes related to transactions or events directly included in owners’ equity
which are included in owners’ equity they are all included in current profits and losses as income tax expenses.The Group adopts the balance sheet liability method to recognize deferred income tax based on the temporary
differences between the book values of assets and liabilities on the balance sheet date and their tax basis.Each taxable temporary difference is recognized as a related deferred income tax liability unless the taxable
temporary difference is generated in the following transactions:
(1) Initial recognition of goodwill or the initial recognition of assets or liabilities arising from a transaction with the
following characteristics: the transaction is not a business combination and the transaction affects neither accounting
profits nor taxable income when the transaction occurs initial recognition (Except for individual transactions that
result in equal amounts of taxable temporary differences and deductible temporary differences arising from the assets
and liabilities);
(2) For taxable temporary differences related to investments in subsidiaries joint ventures and associates the time of
reversal of the temporary differences can be controlled and the temporary differences are likely not to be reversed in
the foreseeable future.For deductible temporary differences deductible losses and tax credits that can be carried forward to future years the
Group shall use it to offset the deductible temporary differences deductible losses and tax credits to the extent that it
is probable that it will be available. The deferred income tax assets generated will be recognized to the limit of the
future taxable income unless the deductible temporary difference is generated in the following transactions:
(1) The transaction is not a business combination and when the transaction occurs it affects neither accounting
profits nor taxable income (a single transaction in which the initial recognition of assets and liabilities results in an
equal amount of taxable temporary differences and deductible temporary differences are excepted);
(2) For deductible temporary differences related to investments in subsidiaries joint ventures and associates and if
the following conditions are met at the same time the corresponding deferred income tax assets are recognized: the
temporary differences are likely to be reversed in the foreseeable future. And it is likely to obtain taxable income in
the future that can be used to offset deductible temporary differences.On the balance sheet date the Group’s deferred income tax assets and deferred income tax liabilities are measured at
the applicable tax rate during the period when the asset is expected to be recovered or the liability is settled and the
income tax impact of the expected method of recovering the asset or settling the liability on the balance sheet date is
reflected.On the balance sheet date the Group reviews the book value of deferred income tax assets. If it is probable that
sufficient taxable income will not be available in future periods to offset the benefits of deferred tax assets the
37CSG HOLDING CO. LTD. Financial Report of Semi-annual Report 2024
carrying amount of the deferred tax assets will be reduced. The amount of the write-down is reversed when it is
probable that sufficient taxable income will be obtained.On the balance sheet date deferred income tax assets and deferred income tax liabilities are presented as the net
amount after offsetting when the following conditions are met at the same time:
(1) The tax payer within the group has the legal right to settle current income tax assets and current income tax
liabilities on a net basis;
(2) Deferred income tax assets and deferred income tax liabilities are related to income taxes levied by the same tax
collection and administration department on the same taxpayer within the group.
26. Leases
On the contract inception date the Group as a lessee or lessor evaluates whether the customer in the contract has the
right to obtain substantially all the economic benefits generated from the use of the identified assets during the use
period and has the right to direct the use of the identified assets during the use period. If a party in a contract transfers
the right to control the use of one or more identified assets within a certain period in exchange for consideration the
Group determines that the contract is a lease or contains a lease.
(1) The accounting policies for right-of-use assets are shown in Note.
Lease liabilities are initially measured based on the present value of the unpaid lease payments at the beginning of the
lease term using the interest rate implicit in the lease.If the interest rate implicit in the lease cannot be determined the incremental borrowing rate is used as the discount
rate. Lease payments include: fixed payments and substantive fixed payments if there are lease incentives the
amount related to lease incentives is deducted; variable lease payments that depend on the index or ratio; the exercise
price of the purchase option provided that the lessee is reasonable It is certain that the option will be exercised; the
amount required to be paid to exercise the option to terminate the lease provided that the lease term reflects that the
lessee will exercise the option to terminate the lease; and the amount expected to be paid based on the residual value
of the guarantee provided by the lessee. Subsequently the interest expense of the lease liability for each period during
the lease term is calculated based on the fixed periodic interest rate and included in the current profit and loss.Variable lease payments that are not included in the measurement of lease liabilities are included in the current profit
and loss when actually incurred.Short-term lease
A short-term lease refers to a lease with a lease term of no more than 12 months on the start date of the lease period
except for leases that include a purchase option.The Group will include the lease payments of short-term leases into the relevant asset costs or current profits and
losses on a straight-line basis during each period of the lease term.Low-value asset leasing
Low-value asset leases refer to leases where the value of a single leased asset is less than 100000 yuan when it is a
brand-new asset.The Group will include the lease payments for low-value asset leases into the relevant asset costs or current profits
and losses on a straight-line basis during each period of the lease term.For low-value asset leases the Group chooses to adopt the above simplified treatment method based on the specific
circumstances of each lease.Lease changes
38CSG HOLDING CO. LTD. Financial Report of Semi-annual Report 2024
If a lease changes and the following conditions are met at the same time the Group will account for the lease change
as a separate lease: 1) The lease change expands the scope of the lease by adding the right to use one or more leased
assets; 2) Increased The consideration is equivalent to the individual price of the extended portion of the lease
adjusted for the circumstances of the contract.If the lease change is not accounted for as a separate lease on the effective date of the lease change the Group re-
allocates the consideration of the contract after the change re-determines the lease term and calculates it based on the
changed lease payment and the revised discount rate. Present value remeasurement of the lease liability.If a change in the lease results in a reduction in the scope of the lease or a shortening of the lease period the Group
will accordingly reduce the book value of the right-of-use assets and include the gains or losses related to the partial
or complete termination of the lease into the current profits and losses.If other lease changes result in the remeasurement of lease liabilities the Group will adjust the book value of the
right-of-use assets accordingly.
(2) The accounting policies for the Group acts as lessor
When the Group acts as a lessor leases that substantially transfer all risks and rewards related to asset ownership are
recognized as finance leases and leases other than finance leases are recognized as operating leases.Financial lease
In financial leases the Group’s net lease investment on the date of the lease term is recorded as the accounting value
of finance lease receivables. The net lease investment is the unguaranteed residual value and the lease receivables that
have not been received on the date of the lease term are calculated based on the amount included in the lease. The
sum of present values discounted with interest rates. As the lessor the Group calculates and recognizes interest
income for each period during the lease term based on fixed periodic interest rates. Variable lease payments obtained
by the Group as a lessor that are not included in the measurement of the net lease investment are included in the
current profit and loss when actually incurred.The derecognition and impairment of finance lease receivables shall be accounted for in accordance with the
provisions of Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of Financial
Instruments and Accounting Standards for Business Enterprises No. 23 - Transfer of Financial Assets.Operating lease
For rents in operating leases the Group recognizes current profits and losses according to the straight-line method in
each period during the lease term. The initial direct expenses incurred in connection with the operating lease shall be
capitalized amortized during the lease period on the same basis as the rental income recognition and included in the
current profit and loss in instalments. Variable lease payments related to operating leases that are not included in the
lease receipts are included in the current profit and loss when they actually occur.Lease changes
If an operating lease changes the Group will account for it as a new lease from the effective date of the change and
the amount of lease receipts received in advance or receivable related to the lease before the change is regarded as the
amount of receipts from the new lease.If a financial lease changes and the following conditions are met at the same time the Group will account for the
change as a separate lease: 1) The change expands the scope of the lease by adding the right to use one or more leased
assets; 2) The increased consideration. The amount is equivalent to the individual price of the extended portion of the
lease adjusted for the circumstances of the contract.If a financial lease is changed and is not accounted for as a separate lease the Group will treat the changed lease
under the following circumstances: 1) If the change takes effect on the lease commencement date the lease will be
classified as an operating lease and the Group will From the effective date of the lease change it will be accounted
39CSG HOLDING CO. LTD. Financial Report of Semi-annual Report 2024
for as a new lease and the net lease investment before the effective date of the lease change will be used as the book
value of the leased asset; 2) If the change takes effect on the lease commencement date the lease will be classified as
financing For leases the Group shall conduct accounting treatment in accordance with the provisions of Accounting
Standards for Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments regarding
modification or renegotiation of contracts.
27. Critical accounting policies and accounting estimates
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) 4.5% for revenue below RMB10 million (inclusive) of the year;
(b) 2.25% for the revenue between RMB10 million to RMB100 million (inclusive) of the year;
(c) 0.55% 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.Significant accounting judgments and estimates
The Group continuously evaluates the important accounting estimates and key assumptions adopted based on
historical experience and other factors including reasonable expectations for future events. The important accounting
estimates and key assumptions that are likely to cause a significant adjustment in the book value of assets and
liabilities in the next fiscal year are as follows:
Classification of financial assets
The Group’s significant judgments involved in determining the classification of financial assets include analysis of
business models and contractual cash flow characteristics.Factors considered include the way to evaluate and report the performance of financial assets to key management
personnel the risks that affect the performance of financial assets and their management methods and relevant
business managers. How to get paid etc.When the Group evaluates whether the contractual cash flows of financial assets are consistent with the basic lending
arrangements it makes the following main judgments: whether the time distribution or amount of the principal may
change during the duration due to early repayment; whether the interest is only Includes time value of money credit
risk other fundamental lending risks and consideration against costs and profits. For example whether the amount of
early repayment only reflects the unpaid principal and interest based on the unpaid principal as well as reasonable
compensation paid for early termination of the contract.Measurement of expected credit losses on accounts receivable
40CSG HOLDING CO. LTD. Financial Report of Semi-annual Report 2024
The Group calculates the expected credit losses of accounts receivable through the default risk exposure of accounts
receivable and the expected credit loss rate and determines the expected credit loss rate based on the probability of
default and the loss given default rate. When determining the expected credit loss rate the Group uses internal
historical credit loss experience and other data and adjusts historical data based on current conditions and forward-
looking information. When considering forward-looking information the Group uses indicators including the risk of
economic downturn changes in the external market environment technical environment and customer conditions.The Group regularly monitors and reviews assumptions related to the calculation of expected credit losses.Impairment of Fixed Assets and Construction in Progress
As of the balance sheet date the Company assesses whether there are any indications of impairment for non-current
assets other than financial assets. When there are indications that the carrying amount of an asset cannot be recovered
impairment testing is conducted.Impairment occurs when the carrying amount of an asset or asset group exceeds its recoverable amount which is the
higher of the net amount after deducting disposal costs from fair value and the present value of estimated future cash
flows. The net amount after deducting disposal costs from fair value is determined by referencing the sales agreement
prices of similar assets in fair transactions or observable market prices minus incremental costs directly attributable
to the asset’s disposal. Significant judgments are made regarding the expected future cash flow present value
including the asset’s (or asset group’s) output selling price relevant operating costs and the discount rate used in the
present value calculation. The Company utilizes all relevant information available to estimate the recoverable amount
including forecasts of output selling prices and related operating costs based on reasonable and supportable
assumptions.Goodwill impairment
The Group assesses whether goodwill is impaired at least annually. This requires an estimate of the value in use of the
asset group to which goodwill is assigned. When estimating value in use the Group needs to estimate future cash
flows from the asset group and select an appropriate discount rate to calculate the present value of future cash flows.R&D expenditure
When determining the amount to be capitalized management must make assumptions regarding the expected future
cash generation of the asset the discount rate that should be applied and the expected period of benefit.Deferred tax assets
Deferred tax assets should be recognized for all unused tax losses to the extent that it is probable that sufficient
taxable profits will be available against which the losses can be utilised. This requires management to use a lot of
judgment to estimate the timing and amount of future taxable profits combined with tax planning strategies to
determine the amount of deferred income tax assets that should be recognized.
28. Changes in important accounting policies and accounting estimates
(1) Important changes in accounting policies
Accounting Standards for Business Enterprises Interpretation No. 17
The Ministry of Finance issued the Interpretation No. 17 of Accounting Standards for Business Enterprises (Financial
Accounting [2023] No. 21) in October 2023 (hereinafter referred to as “Interpretation No. 17”). It further
standardized and clarified the classification of current and non-current liabilities disclosure of supplier financing
arrangements and accounting treatments of sale and leaseback transactions which was effective from 1 January 2024.The adoption of Interpretation No. 17 had no significant impact on the financial condition and operating results of the
Group.
41CSG HOLDING CO. LTD. Financial Report of Semi-annual Report 2024
VI. TAXATION
1. The main categories and rates of taxes applicable to the Group are set out below:
Category Taxable basis Tax rate
Enterprise income tax Taxable income 16.5%. 25%
Taxable value-added amount (Tax
payable is calculated using the taxable
Value-added tax (“VAT”) sales amount multiplied by the applicable 3%-13%
tax rate less deductible VAT input of the
current period)
Urban maintenance and construction tax Actual amount of turnover tax paid 1%-7%
Educational surtax Actual amount of turnover tax paid 5%
2. Tax incentives
Tianjin CSG Energy-Saving Glass Co. Ltd. (“Tianjin Energy Conservation”) passed review on a high and new tech
enterprise in 2021 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 2021. As the company is currently going through the 2024 review of its
high and new tech enterprise certificate the income tax rate of 15% was provisionally adopted for the report period.Dongguan CSG Architectural Glass Co. Ltd. (“Dongguan CSG”) passed review on a high and new tech enterprise in
2022 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 2022.
Wujiang CSG East China Architectural Glass Co. Ltd. (“Wujiang CSG Engineering”) passed review on a high and
new tech enterprise in 2023 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 2023.Dongguan CSG Solar Glass Co. Ltd. (“Dongguan CSG Solar”) passed review on a high and new tech enterprise in
2023 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 2023.
Yichang CSG Polysilicon Co. Ltd. (“Yichang CSG Polysilicon”) passed review on a high and new tech enterprise in
2023 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 2023.
Dongguan CSG PV-tech Co. Ltd. (“Dongguan CSG PV-tech”) passed review on a high and new tech enterprise in
2022 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 2022.
Hebei Shichuang Glass Co. Ltd. (“Hebei Shichuang”) passed review on a high and new tech enterprise in 2022 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 2022.Wujiang CSG Glass Co. Ltd. (“Wujiang CSG”) passed review on a high and new tech enterprise in 2023 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 2023.
Xianning CSG Glass Co Ltd. (“Xianning CSG”) passed review on a high and new tech enterprise in 2023 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 2023.
42CSG HOLDING CO. LTD. Financial Report of Semi-annual Report 2024
Xianning CSG Energy-Saving Glass Co. Ltd. (“Xianning CSG Energy-Saving”) passed review on a high and new
tech enterprise in 2021 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 2021. As the company is currently going through the 2024
review of its high and new tech enterprise certificate the income tax rate of 15% was provisionally adopted for the
report period.Yichang CSG Photoelectric Glass Co. Ltd. (“Yichang CSG Photoelectric”) passed review on a high and new tech
enterprise in 2021 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 2021. As the company is currently going through the 2024
review of its high and new tech enterprise certificate the income tax rate of 15% was provisionally adopted for the
report period.Yichang CSG Display Co. Ltd (“Yichang CSG Display”) passed review on a high and new tech enterprise in 2021
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 2021. As the company is currently going through the 2024 review of its high and
new tech enterprise certificate the income tax rate of 15% was provisionally adopted for 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 2022 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 2022.Hebei CSG Glass Co Ltd. (“Hebei CSG”) passed review on a high and new tech enterprise in 2021 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 2021. As the company is currently going through the 2024 review of its high and new tech enterprise
certificate the income tax rate of 15% was provisionally adopted for the report period.Shenzhen CSG Applied Technology Co Ltd. (“Shenzhen Technology”) passed review on a high and new tech
enterprise in 2021 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 2021. As the company is currently going through the 2024
review of its high and new tech enterprise certificate the income tax rate of 15% was provisionally adopted for the
report period.Xianning CSG Photoelectric Glass Co. Ltd. (“Xianning Photoelectric”) passed review on a high and new tech
enterprise in 2022 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 2022.Zhaoqing CSG Energy Saving Glass Co. Ltd. (hereinafter referred to as "Zhaoqing Energy Saving Company")
passed review on a high and new tech enterprise in 2022 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 2022.Sichuan CSG Energy Conservation Glass Co. Ltd. (“Sichuan CSG Energy Conservation”) obtains enterprise income
tax preferential treatment for Western Development and temporarily calculates enterprise income tax at a tax rate of
15% for current year.
Chengdu CSG Glass Co. Ltd. (“Chengdu CSG”) obtains enterprise income tax preferential treatment for Western
Development and temporarily calculates enterprise income tax at a tax rate of 15% for current year.Xi'an CSG Energy Saving Glass Technology Co. Ltd. (hereinafter referred to as "Xi'an Energy Saving Company")
obtains enterprise income tax preferential treatment for Western Development and temporarily calculates enterprise
income tax at a tax rate of 15% for current year.Guangxi CSG New Energy Materials Technology Co. Ltd. (hereinafter referred to as "Guangxi New Energy
Materials Company") obtains enterprise income tax preferential treatment for Western Development and temporarily
calculates enterprise income tax at a tax rate of 15% for current year.Qinghai CSG New Energy Technology Co. Ltd. (hereinafter referred to as "Qinghai New Energy Company") obtains
enterprise income tax preferential treatment for Western Development and temporarily calculates enterprise income
tax at a tax rate of 15% for current year.
43CSG HOLDING CO. LTD. Financial Report of Semi-annual Report 2024
Yichang CSG New Energy Co. Ltd. (hereinafter referred to as "Yichang New Energy Company") Zhaoqing CSG
New Energy Technology Co. Ltd. (hereinafter referred to as "Zhaoqing New Energy Company") Xianning CSG PV
Energy Co. Ltd. (“Xianning PV Energy”) Zhanjiang CSG New Energy Co. Ltd. (“Zhanjiang PV Energy”) and
Anhui CSG Photovoltaic Energy Co. Ltd. (“Anhui PV Energy”) are public infrastructure project specially supported
by the state in accordance with the Article 87 in Implementing Regulations of the Law of the People's Republic ofChina on Enterprise Income Tax and can enjoy the tax preferential policy of “three-year exemptions and three-yearhalves” 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.Anhui CSG Quartz Material Co. Ltd. (hereinafter referred to as "Anhui Quartz Company") was recognized as a high-
tech enterprise in 2023 and has obtained the "High-tech Enterprise Certificate". The certificate is valid for three years
and a 15% income tax rate is applicable for three years starting from 2023.Anhui CSG New Energy Materials Technology Co. Ltd. (hereinafter referred to as "Anhui New Energy Company")
was recognized as a high-tech enterprise in 2023 and has obtained the "High-tech Enterprise Certificate". The
certificate is valid for three years and a 15% income tax rate is applicable for three years starting from 2023.According to the "Announcement on the Additional Value-Added Tax Deduction Policy for Advanced
Manufacturing Enterprises" (Announcement No. 43 2023 of the Ministry of Finance and the State Administration of
Taxation) regarding the Company's high-tech enterprises from January 1 2023 to December 31 2027 advanced
manufacturing enterprises are allowed to deduct an additional 5% of the deductible input tax for the current period to
deduct the value-added tax payable.
44CSG HOLDING CO. LTD. Financial Report of Semi-annual Report 2024
VII. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1. Cash at bank and on hand
Unit: RMB
Item 30 June 2024 1 January 2024
Cash at bank 3477639345 3051261655
Other currency funds 141639610 25512563
Total 3619278955 3076774218
Including: Total overseas deposits 43301497 31005196
The total amount of cash and cash
equivalents that are restricted to use due 141639610 25512563
to mortgage pledge or freezing etc.
2. Notes receivable
（1）Notes receivable listed by category
Unit: RMB
Item 30 June 2024 1 January 2024
Bank acceptance 1474867926 1510946903
Trade acceptance 94257560 82573591
Total 1569125486 1593520494
（2）Classification by bad debt accrual method
Unit: RMB
30 June 2024
Category Carrying amount Provision for bad debts
Book value
Amount Proportion Amount Proportion
Provision for bad debts on an
individual basis
Provision for bad debts on a
1571049110100%19236240.12%1569125486
portfolio basis
Including:
Bank acceptance 1474867926 94% 1474867926
Trade acceptance 96181184 6% 1923624 2% 94257560
Total 1571049110 100% 1923624 0.12% 1569125486
(Continued)
1 January 2024
Category Carrying amount Provision for bad debts
Book value
Amount Proportion Amount Proportion
Provision for bad debts on an
45CSG HOLDING CO. LTD. Financial Report of Semi-annual Report 2024
individual basis
Provision for bad debts on a
1595205669100%16851750.11%1593520494
portfolio basis
Including:
Bank acceptance 1510946903 95% 1510946903
Trade acceptance 84258766 5% 1685175 2% 82573591
Total 1595205669 100% 1685175 0.11% 1593520494
Provision for bad debts on a basis of trade acceptance portfolio:
Unit: RMB
30 June 2024
Item
Carrying amount Provision for bad debts Provision proportion
Trade acceptance 96181184 1923624 2%
Total 96181184 1923624
（3）Bad debt provisions accrued recovered or reversed in the current period
Bad debt provisions in the current period:
Unit: RMB
Change in the current period
Category 1 January 2024 Recovered or 30 June 2024
Accrued Written off Others
reversed
Trade
16851756586944202451923624
acceptance
Total 1685175 658694 420245 1923624
（4）Notes receivables that the Company has pledged at the end of the period
Unit: RMB
Item Pledged amount
Bank acceptance 1092137999
Total 1092137999
（5）Endorsed or discounted notes receivable have not yet matured on the balance sheet
Unit: RMB
Derecognized amount at the end of the Un-derecognized amount at the end of
Item
period the period
Bank acceptance 253785857
Trade acceptance 3905265
Total 257691122
46CSG HOLDING CO. LTD. Financial Report of Semi-annual Report 2024
3. Accounts receivable
（1）Disclosure by age
Unit: RMB
Aging 30 June 2024 1 January 2024
Within 1 year (including 1 year) 1748714872 1799401050
1 to 2 years 34569102 42338430
2 to 3 years 63255818 156855077
Over 3 years 192219106 81310642
Total 2038758898 2079905199
（2）Classification by bad debt accrual method
Unit: RMB
30 June 2024
Carrying amount Provision for bad debts
Category
Provision Book value
Amount Proportion Amount
proportion
Provision for bad debts on an
1711653148%15552261291%15642702
individual basis
Provision for bad debts on a
186759358492%373546502%1830238934
portfolio basis
Including:
Receivables from unrelated parties 1867593584 92% 37354650 2% 1830238934
Total 2038758898 100% 192877262 9% 1845881636
(Continued)
1 January 2024
Carrying amount Provision for bad debts
Category
Provision Book value
Amount Proportion Amount
proportion
Provision for bad debts on an
1763570148%16007484091%16282174
individual basis
Provision for bad debts on a
190354818592%380339512%1865514234
portfolio basis
Including:
Receivables from unrelated parties 1903548185 92% 38033951 2% 1865514234
Total 2079905199 100% 198108791 10% 1881796408
Provision for bad debts on an individual basis:
Unit: RMB
1 January 2024 30 June 2024
Item Carrying Provision for Carrying Provision for Provision
Reason for provision
amount bad debts amount bad debts proportion
Total of 176357014 160074840 171165314 155522612 91% Mainly due to the inability to
47CSG HOLDING CO. LTD. Financial Report of Semi-annual Report 2024
1 January 2024 30 June 2024
Item Carrying Provision for Carrying Provision for Provision
Reason for provision
amount bad debts amount bad debts proportion
single-item honor commercial acceptance bills
accrual issued by Evergrande and its
customers subsidiaries that have been
endorsed by customers and the
transfer of accounts receivable
from bills receivable as well as
partial or full provision for bad
debt reserves due to business
disputes or deterioration of
customer operations.Total 176357014 160074840 171165314 155522612 91%
Provision for bad debts on a portfolio basis:
Unit: RMB
30 June 2024
Item
Carrying amount Provision for bad debts Provision proportion
Combined customers 1867593584 37354650 2%
Total 1867593584 37354650
（3）Bad debt provisions accrued recovered or reversed in the current period
Bad debt provisions in the current period:
Unit: RMB
Change in the current period
Category 1 January 2024 Recovered or 30 June 2024
Accrued Written off
reversed
Bad debt provisions
for accounts 198108791 9227299 14387203 71625 192877262
receivable
Total 198108791 9227299 14387203 71625 192877262
（4）Actual write-off of accounts receivable in the current period
Unit: RMB
Item Write-off amount
Accounts receivable 71625
（5）Accounts receivable details of the top 5 closing balances by debtors
Unit: RMB
Accounts receivable closing Percentage in total accounts Provision for bad debts closing
Name
balance receivable balance balance
Total balances for the five
largest accounts receivable 611275089 30% 12225502
48CSG HOLDING CO. LTD. Financial Report of Semi-annual Report 2024
Total 611275089 30% 12225502
4. Receivables financing
Unit: RMB
Item 30 June 2024 1 January 2024
Notes receivable 622130245 529945623
Total 622130245 529945623
5. Other receivables
Unit: RMB
Item 30 June 2024 1 January 2024
Other receivables 173913608 177957033
Total 173913608 177957033
（1）Other receivables
1）Other receivables categorized by nature
Unit: RMB
Nature 30 June 2024 1 January 2024
Receivables from special fund for talent
171000000171000000
(note)
Payments made on behalf of other parties 31769484 40125087
Advances to suppliers 10366164 10366164
Refundable deposits 9862520 9033990
Petty cash 1354833 594514
Others 13614899 13797012
Total 237967900 244916767
Note: This fund is a subsidy fund given to the Group by the government. The Company entrusted its wholly-owned subsidiary
Yichang CSG Silicon Materials Co. Ltd. to collect the fund. The Yichang High-tech Zone Management Committee also paid the
full amount to Yichang CSG Silicon in 2014. After receiving the funds Yichang CSG Silicon Materials Co. Ltd. transferred the
full amount to Yichang Hongtai Real Estate Co. Ltd. without appropriate approval by the then Company's board of directors and
other competent authorities. Yichang CSG Silicon Materials Co. Ltd. received the above funds from 21 February 2014 to 28 April
2014 and then transferred the entire amount to Yichang Hongtai Real Estate Co. Ltd.
The Company filed an infringement compensation lawsuit against Zeng Nan and others and Yichang Hongtai Real Estate Co. Ltd.on 15 December 2021 and Shenzhen Intermediate People's Court officially accepted the lawsuit on 28 January 2022. The first
instance of the case was completed in Shenzhen Intermediate People's Court on 21 June 2022. On 4 June 2024 the Company
received the first instance Civil Judgment issued by Shenzhen Intermediate People's Court which rejected all of the Company's
litigation requests. In June 2024 the Company filed an appeal to Guangdong Higher People's Court and the case is currently in the
process of the second instance.
49CSG HOLDING CO. LTD. Financial Report of Semi-annual Report 2024
2） Disclosure by age
Unit: RMB
Aging 30 June 2024 1 January 2024
Within 1 year (including 1 year) 22878544 22612560
1 to 2 years 2168217 1819789
2 to 3 years 15777311 20535190
Over 3 years 197143828 199949228
3 to 4 years 836485 1058546
4 to 5 years 676868 450650
Over 5 years 195630475 198440032
Total 237967900 244916767
3） Classification by bad debt accrual method
Unit: RMB
30 June 2024
Carrying amount Provision for bad debts
Category
Provision
Propor Book value
Amount Amount proportio
tion
n
Provision for bad debts on an individual
18282364177%6312364235%119699999
basis
Provision for bad debts on a portfolio basis 55144259 23% 930650 2% 54213609
Including:
Unrelated party combination 55144259 23% 930650 2% 54213609
Total 237967900 100% 64054292 27% 173913608
(Continued)
1 January 2024
Carrying amount Provision for bad debts
Category
Provision
Propor Book value
Amount Amount proportio
tion
n
Provision for bad debts on an individual
18839398177%6590881135%122485170
basis
Provision for bad debts on a portfolio basis 56522786 23% 1050923 2% 55471863
Including:
Unrelated party combination 56522786 23% 1050923 2% 55471863
Total 244916767 100% 66959734 27% 177957033
Provision for bad debts accrued on the basis of a general model of expected credit losses:
Unit: RMB
Provision for bad debt Stage 1 Stage 2 Stage 3 Total
50CSG HOLDING CO. LTD. Financial Report of Semi-annual Report 2024
Expected credit Expected credit
Expected
loss for the loss for the
credit loss in
whole period whole period
the next 12
(no credit (with credit
months
impairment) impairment)
Amount on 1 January 2024 1050923 65908811 66959734
Carrying amount on 1 January
2024
that in this period:
Provision for the period 84702 84702
Reverse for the period 204975 2339177 2544152
Write-off for the period 445992 445992
Amount on 30 June 2024 930650 63123642 64054292
4） Bad debt provisions accrued recovered or reversed in the current period
Bad debt provisions in the current period:
Unit: RMB
Change in the current period
1 January
Category
2024 Recovered or
30 June 2024
Accrued Written off Others
reversed
Bad debt provisions
6695973484702254415244599264054292
for other receivables
Total 66959734 84702 2544152 445992 64054292
5） Actual write-off of other receivables in the current period
Unit: RMB
Item Write-off amount
Other receivables 445992
6）Other receivables details of the top 5 closing balances by debtors
Unit: RMB
Percentage in total
Provision for bad
Name Nature of business 30 June 2024 Ageing other receivables
debts
balance
Independent third
Company 1 171000000 Over 5 years 72% 51300000
party
Independent third
Company 2 14000000 2-3 years 6% 280000
party
Independent third
Company 3 11556004 Over 5 years 5% 231120
party
Independent third
Company 4 10366164 Over 5 years 4% 10366164
party
Independent third
Company 5 1800000 Over 5 years 1% 36000
party
51CSG HOLDING CO. LTD. Financial Report of Semi-annual Report 2024
Percentage in total
Provision for bad
Name Nature of business 30 June 2024 Ageing other receivables
debts
balance
Total 208722168 88% 62213284
6. Advances to suppliers
（1）Listing by ages
Unit: RMB
30 June 2024 1 January 2024
Aging
Amount Proportion Amount Proportion
Within 1 year
11697540097%155075823100%
(including 1 year)
1 to 2 years 3122473 3% 395256
2 to 3 years 64013 1766
Over 3 years 1766 3800
Total 120163652 155476645
（2）Advance payment of the top 5 closing balances by prepayment objects
Item Advance payment closing balance Percentage in total advances to suppliers balance
Total balances for the five
5680549247%
largest advances to suppliers
7. Inventories
（1）Inventory classification
Unit: RMB
30 June 2024 1 January 2024
Provision for Provision for
Item Carrying decline in the Carrying decline in the
Book value Book value
amount value of amount value of
inventories inventories
Raw
648135092195371746285979185688033351935371566867964
materials
Work in
34111901341119012994104629941046
progress
Finished
123691162332317391120459423292868578128179241900506540
goods
Turnover
1116218731836681114382059309312718388292909245
materials
Total 2030780489 52038233 1978742256 1620523289 30298494 1590224795
52CSG HOLDING CO. LTD. Financial Report of Semi-annual Report 2024
（2） Provision for decline in the value of inventories
Unit: RMB
Increase in current period Decrease in current period
Item 1 January 2024 Reversal or 30 June 2024
Provision Others Others
write-off
Raw materials 1935371 18073648 471845 19537174
Finished goods 28179241 23242267 19104117 32317391
Turnover
183882214183668
materials
Total 30298494 41315915 19576176 52038233
8. Non-current assets due within one year
Unit: RMB
Item 30 June 2024 1 January 2024
Fixed-term deposit in bank due within
84191224
one year
Total 84191224
9. Other current assets
Unit: RMB
Item 30 June 2024 1 January 2024
VAT to be offset 353275416 260361670
Enterprise income tax prepaid 2601848 18127608
VAT input to be recognised 15127715 33577420
Term deposits 42800000 40000000
Total 413804979 352066698
10. Investment properties
（1）Investment properties measured using the fair value model
√ Applicable □ Not applicable
Unit: RMB
Item House building and related land use rights
I. 1 January 2024 290368105
II. Movement in the current period 2343753
III. 30 June 2024 292711858
11. Fixed assets
Unit: RMB
Item 30 June 2024 1 January 2024
53CSG HOLDING CO. LTD. Financial Report of Semi-annual Report 2024
Item 30 June 2024 1 January 2024
Fixed assets 12785878380 13145568631
Total 12785878380 13145568631
（1）List of fixed assets
Unit: RMB
Machinery and Motor vehicles
Item Buildings Total
equipment and others
I. Original book value：
1. 1 January 2024 6308032051 16145236673 369115738 22822384462
2. Increase in current period 114474348 242020867 13208585 369703800
（1）Acquisition 5322104 15430543 11059842 31812489
（2）Transfers from
105629308226075188331704496
construction in progress
（3）Other increases 3522936 515136 2148743 6186815
3. Decrease in current period 5110586 740029055 5579475 750719116
（1）Disposal or
133527952816468476113558912882
retirement
（2）Transfer to
3775307670065001673840308
construction in progress
（3）Other decreases 17147586 818340 17965926
4. 30 June 2024 6417395813 15647228485 376744848 22441369146
II. Accumulative depreciation
1. 1 January 2024 1411838090 6622522037 273719361 8308079488
2. Increase in current period 106825930 452458689 20853213 580137832
（1）Accrual 106814755 452448127 20631114 579893996
（2）Other increases 11175 10562 222099 243836
3. Decrease in current period 1913617 573342258 4852372 580108247
（1）Disposal or
25409256442759329836849
retirement
（2）Transfer to
1913617547495429549409046
construction in progress
（3）Other decreases 437573 424779 862352
4. 30 June 2024 1516750403 6501638468 289720202 8308109073
III. Impairment provision
1. 1 January 2024 152839987 1215616873 279483 1368736343
2. Increase in current period 2247363 416190 2663553
（1）Transfers from
22473634161902663553
construction in progress
3. Decrease in current period 1335279 22682924 24018203
（1）Disposal or
13352792268292424018203
retirement
54CSG HOLDING CO. LTD. Financial Report of Semi-annual Report 2024
Machinery and Motor vehicles
Item Buildings Total
equipment and others
4. 30 June 2024 151504708 1195181312 695673 1347381693
IV. Book value
1. 30 June 2024 4749140702 7950408705 86328973 12785878380
2. 1 January 2024 4743353974 8307097763 95116894 13145568631
（2）Fixed assets without ownership certificate
Unit: RMB
Reasons for not yet obtaining certificates
Item Book value
of title
Have submitted the required documents
and are in the process of application or
Buildings 926436414
the related land use right certificate
pending
12. Construction in progress
Unit: RMB
Item 30 June 2024 1 January 2024
Construction in progress 5860245516 4325016420
Total 5860245516 4325016420
55CSG HOLDING CO. LTD. Financial Report of Semi-annual Report 2024
（1）Details of construction in progress
Unit: RMB
30 June 2024 1 January 2024
Item Provision for Provision for
Carrying amount Book value Carrying amount Book value
impairment loss impairment loss
A new high-purity crystalline silicon project with an
annual output of 50000 tons in Haixi Prefecture Qinghai 3491475262 3491475262 2646430785 2646430785
Province
Guangxi Beihai Photovoltaic Green Energy Industry Park
12543650911254365091728103811728103811
(Phase I) Project
Yichang CSG Polysilicon Technical Transformation
5391002245688857648221164850781535656888576450926780
Project
Wujiang Float (650TD) Photovoltaic Calendering Line
117914338117914338154717154717
Technical Transformation Project
Qingyuan CSG Phase I Upgrading Technical
230292811116909920113382891228055647116909920111145727
Transformation Project
Xi'an CSG energy-saving glass production line project 50156346 50156346 222583993 222583993
Xianning energy-saving production line reconstruction
30589560305895602558550125585501
and expansion construction project
Wujiang Float Processing Department Production Line
1658582516585825
Technical Upgrading and Transformation
Dongguan Photovoltaic Building B 450MWPERC battery
18686674318499807618686671868667431849980761868667
technology upgrade project
Anhui Fengyang newly built 37.6 MW distributed
8335443283354432
photovoltaic power generation project
Other projects 303227704 1531816 301695888 59057376 4195369 54862007
Total 6220573904 360328388 5860245516 4688008361 362991941 4325016420
56CSG HOLDING CO. LTD. Financial Report of Semi-annual Report 2024
（2）Movement of significant projects of construction in progress
Unit: RMB
Including:
Proportion Amount of Capitali
Other Engine Amount of
Transfer to fixed between borrowing zation
1 January Increase in decreases ering borrowing Source of
Project name Budget assets in current 30 June 2024 engineerin costs rate for
2024 current period in current progres costs fund
period g input capitalized in current
period s capitalized
and budget current period
period
A new high-purity
crystalline silicon
project with an Internal
annual output of 4498192210 2646430785 857680692 12636215 3491475262 78% 78% 24314504 20062535 4.13% fund and
50000 tons in Haixi bank loan
Prefecture Qinghai
Province
Guangxi Beihai
Internal
Photovoltaic Green
4942051800 728103811 541274995 15013715 1254365091 33% 33% 9743845 5121348 2.44% fund and
Energy Industry Park
(Phase I) Project bank loan
Qingyuan CSG Phase
I Upgrading Internal
Technical 534870000 228055647 2247649 10485 230292811 5% 5% fund and
Transformation bank loan
Project
Xi'an CSG energy-
Internal
saving glass
494000000 222583993 17899051 186903430 3423268 50156346 60% 60% 3688930 1749339 3.54% fund and
production line
project bank loan
Anhui Fengyang
newly built 37.6 MW Internal
distributed 146640000 83354432 6150317 89504749 61% 100% 543559 140754 4.07% fund and
photovoltaic power bank loan
generation project
Total 10615754010 3908528668 1425252704 304068594 3423268 5026289510 38290838 27073976
57CSG HOLDING CO. LTD. Financial Report of Semi-annual Report 2024
（3） Provision for impairment of construction in progress in the current period
Unit: RMB
Increase in the current period
Decrease in
1 January Provision for Reason for Project Other the current 30 June 2024 2024 the current provision
increases period
period
Qingyuan CSG Phase I
Upgrading Technical 116909920 116909920
Transformation Project
Dongguan Photovoltaic
Building B 450MWPERC
184998076184998076
battery technology upgrade
project
Yichang CSG Polysilicon
Technical Transformation 56888576 56888576
Project
Other projects 4195369 2663553 1531816
Total 362991941 2663553 360328388 --
13. Right-of-use assets
Unit: RMB
Item Land leases Building leases Total
I. Original book value:
1. 1 January 2024 21823035 2984415 24807450
2. Increase in current
period
3. Decrease in current
period
4. 30 June 2024 21823035 2984415 24807450
II. Accumulative depreciation
1. 1 January 2024 3020601 149221 3169822
2. Increase in current
819440149221968661
period
(1) Provision 819440 149221 968661
3. Decrease in current
period
4. 30 June 2024 3840041 298442 4138483
III. Impairment provisions
IV. Book value
1. 30 June 2024 17982994 2685973 20668967
2. 1 January 2024 18802434 2835194 21637628
58CSG HOLDING CO. LTD. Financial Report of Semi-annual Report 2024
14. Intangible assets
（1）Details of intangible assets
Unit: RMB
Patents and
Land use Exploitation
Item proprietary Others Total
rights rights
technologies
I. Original book value：
1. 1 January 2024 1469814142 563753185 1091671546 72584426 3197823299
2. Increase in current
37544333754433
period
（1）Acquisition 331165 331165
（2）Others 3423268 3423268
3. Decrease in current
period
4. 30 June 2024 1469814142 563753185 1091671546 76338859 3201577732
II. Accumulative amortization
1. 1 January 2024 293150658 262978745 40776980 56056887 652963270
2. Increase in current
150402471752691938510655234559973423420
period
（1）Accrual 15040247 17526919 38510655 2345599 73423420
3. Decrease in current
period
4. 30 June 2024 308190905 280505664 79287635 58402486 726386690
III. Provision for impairment
1. 1 January 2024 54316431 13374 54329805
2. Increase in current
period
3. Decrease in current
period
4. 30 June 2024 54316431 13374 54329805
IV. Book value
1. 30 June 2024 1161623237 228931090 1012383911 17922999 2420861237
2. 1 January 2024 1176663484 246458009 1050894566 16514165 2490530224
（2）Land use rights without ownership certificate
Unit: RMB
Item Book value Reasons for not yet obtaining certificates of title
The management of the Company believes that there is no
substantive legal obstacle to obtaining the relevant land use
Land use rights 4037062
certificate and it will not have a significant adverse impact on
the operation of the Group.
59CSG HOLDING CO. LTD. Financial Report of Semi-annual Report 2024
15. Goodwill
（1）Original book value of goodwill
Unit: RMB
Name of invested
Increase in current Decrease in current
unit or items 1 January 2024 30 June 2024
period period
forming goodwill
Tianjin CSG Architectural
30399463039946
Glass Co. Ltd
Xianning CSG
48574064857406
Photoelectric
Shenzhen CSG Display 389494804 389494804
Guangdong Licheng
Construction Engineering 696000 696000
Co. Ltd.Total 398088156 398088156
（2）Provision for impairment of goodwill
Unit: RMB
Name of invested unit or Increase in current Decrease in current
1 January 2024 30 June 2024
matters forming goodwill period period
Shenzhen CSG Display 389494804 389494804
Total 389494804 389494804
16. Long-term prepaid expenses
Unit: RMB
Amortized
Increase in current
Item 1 January 2024 amounts in Other decreases 30 June 2024
period
current period
Various prepaid
187644295315249417644519903233
expenses
Total 18764429 5315249 4176445 19903233
17. Deferred tax assets and liabilities
（1）Deferred income tax assets before offsetting
Unit: RMB
30 June 2024 1 January 2024
Item Deductible temporary Deductible temporary
Deferred tax assets Deferred tax assets
differences differences
Provision for asset
965206298146093254988603433149485849
impairments
Deductible losses 845370792 145081978 500056218 88815735
60CSG HOLDING CO. LTD. Financial Report of Semi-annual Report 2024
30 June 2024 1 January 2024
Item Deductible temporary Deductible temporary
Deferred tax assets Deferred tax assets
differences differences
Government grants 183168218 27987160 171767926 26346666
Accrued expenses 5378170 806725 6854739 1028211
Depreciation of fixed
1673912352585731012481035319386825
assets etc.Total 2166514713 345826427 1792092669 285063286
（2）Deferred income tax liabilities before offsetting
Unit: RMB
30 June 2024 1 January 2024
Item Taxable temporary Deferred tax Taxable temporary Deferred tax
differences liabilities differences liabilities
Depreciation of fixed assets 535139952 81313308 571131285 86841423
Investment properties 368564944 55284742 368564944 55284742
Total 903704896 136598050 939696229 142126165
（3）Deferred income tax assets or liabilities presented with net amount after offsetting
Unit: RMB
Offset amount of Offset amount of
Closing deferred tax Opening deferred tax
closing deferred tax opening deferred tax
Item assets or liabilities after assets or liabilities after
assets assets
offsetting offsetting
and liabilities and liabilities
Deferred tax assets 61567137 284259290 62038255 223025031
Deferred tax liabilities 61567137 75030913 62038255 80087910
（4）Detail about unrecognized deferred income tax assets
Unit: RMB
Item 30 June 2024 1 January 2024
Deductible temporary differences and losses 1069961338 1168354313
Total 1069961338 1168354313
（5）Deductible losses of unconfirmed deferred income tax assets shall expire in the following years
Unit: RMB
Year 30 June 2024 1 January 2024 Notes
2024103008917
2025502484452502484452
2026557374493557374493
2027524904524904
61CSG HOLDING CO. LTD. Financial Report of Semi-annual Report 2024
Year 30 June 2024 1 January 2024 Notes
202849615474961547
20294615942
Total 1069961338 1168354313
18. Other non-current assets
Unit: RMB
30 June 2024 1 January 2024
Item Carrying Impairment Carrying Impairment
Book value Book value
amount provision amount provision
Prepayment for
equipment and 219021356 219021356 390090354 390090354
project
Prepayment for
lease of land use 13771500 13771500 6510000 6510000
rights
Total 232792856 232792856 396600354 396600354
19. The assets with the ownership or use right restricted
Unit: RMB
30 June 2024
Item
Carrying amount Book value Restricted type Restricted situation
Cash at bank and on Restricted circulation of
141639610 141639610 Cash at bank and on hand
hand deposits freezes etc
Note receivable 1092137999 1092137999 Restricted pledge Note receivable
Fixed assets/
Fixed assets/ Construction
Construction in 927490640 627742974 Restricted financing lease
in progress
progress
Total 2161268249 1861520583
(Continued)
1 January 2024
Item
Carrying amount Book value Restricted type Restricted situation
Cash at bank and on Restricted circulation of
25512563 25512563 Cash at bank and on hand
hand deposits freezes etc
Note receivable 1157485085 1157485085 Restricted pledge Note receivable
Fixed assets 416947659 106982081 Restricted financing lease Fixed assets
Total 1599945307 1289979729
20. Short-term borrowings
（1）Classification of short-term borrowings
Unit: RMB
62CSG HOLDING CO. LTD. Financial Report of Semi-annual Report 2024
Item 30 June 2024 1 January 2024
Guaranteed loan 264263560 320893730
Credit loan 23426590 108426590
Discounted bills 660732 7533263
Total 288350882 436853583
21. Notes payable
Unit: RMB
Type 30 June 2024 1 January 2024
Trade acceptance 140454268 90836911
Bank acceptance 2157963721 1950516278
Supply chain financial notes 211208967
Total 2509626956 2041353189
22. Accounts payable
（1）Accounts payable listed
Unit: RMB
Item 30 June 2024 1 January 2024
Materials payable 1111343655 938666542
Equipment payable 964492585 994552522
Construction expenses payable 1062144697 1206275761
Freight payable 140025365 143114233
Utilities payable 52138174 50982984
Others 8769760 8032560
Total 3338914236 3341624602
（2）Significant accounts payable aged more than one year
Unit: RMB
Item 30 June 2024 Reasons
Due to the unfinished final accounts of
Engineering and equipment payments
237901234 related projects they have not been
etc
settled yet
Total 237901234
23. Other payables
Unit: RMB
Item 30 June 2024 1 January 2024
Interest payable 8863897 8751408
Dividends payable 767673027
63CSG HOLDING CO. LTD. Financial Report of Semi-annual Report 2024
Item 30 June 2024 1 January 2024
Other payables 384072373 475990469
Total 1160609297 484741877
（1）Interest payable
Unit: RMB
Item 30 June 2024 1 January 2024
Interest of long-term borrowings with
periodic payments of interest and return 8366465 8082760
of principal at maturity
Interest of short-term borrowings 497432 668648
Total 8863897 8751408
（2）Dividends payable
Unit: RMB
Item 30 June 2024 1 January 2024
Dividends payable to ordinary
767673027
shareholders
Total 767673027
（3）Other payables
1）Disclosure of other payables by nature
Unit: RMB
Item 30 June 2024 1 January 2024
Guarantee deposits received from
302056930351439479
construction contractors
Accrued cost of sales (i) 45393923 67861475
Payable for contracted labour costs 6776382 27689963
Temporary receipts for third parties 3310676 7277368
Others 26534462 21722184
Total 384072373 475990469
（i）This item mainly includes expenses that have been incurred but for which invoices have not been obtained at the end of the
period comprising maintenance charges professional service fee and travelling expenses etc.
24. Contract liabilities
Unit: RMB
Item 30 June 2024 1 January 2024
Contract liabilities 343813781 362538795
Total 343813781 362538795
64CSG HOLDING CO. LTD. Financial Report of Semi-annual Report 2024
25. Employee benefits payable
（1）Presentation of employee benefits payable
Unit: RMB
Increase in current Decrease in current
Item 1 January 2024 30 June 2024
period period
I. Short-term employee benefits
48017223510549183441209826545325264034
payable
II. Defined contribution plans
9658626696586266
payable
III. Termination benefits 3165561 3530676 6696237
Total 483337796 1155035286 1313109048 325264034
（2）Presentation of short-term benefits
Unit: RMB
Increase in current Decrease in current
Item 1 January 2024 30 June 2024
period period
1. Wages and salaries bonus
4555085519721691261128756917298920760
allowances and subsidies
2. Social security contributions 41777652 41679372 98280
Including: Medical
365316003643332098280
insurance
Work injury
44182884418288
insurance
Maternity insurance 827764 827764
3. Housing funds 880089 28356932 28383625 853396
4. Labour union funds and
23783595126146341100663125391598
employee education funds
Total 480172235 1054918344 1209826545 325264034
（3）Defined benefit plans
Unit: RMB
Increase in current Decrease in current
Item 1 January 2024 30 June 2024
period period
1. Basic pensions 92585461 92585461
2. Unemployment insurance 4000805 4000805
Total 96586266 96586266
26. Taxes payable
Unit: RMB
Item 30 June 2024 1 January 2024
Enterprise income tax payable 88847010 50021929
65CSG HOLDING CO. LTD. Financial Report of Semi-annual Report 2024
Item 30 June 2024 1 January 2024
VAT payable 46214028 44410002
Housing property tax payable 13309437 8590406
Individual income tax payable 4930376 6633485
Urban maintenance and construction tax
21002042667504
payable
Educational surtax payable 1736347 2209407
Environmental tax payable 1523674 1842557
Others 8116521 7032123
Total 166777597 123407413
27. Non-current liabilities due within one year
Unit: RMB
Item 30 June 2024 1 January 2024
Long-term borrowings due within one
15238408271206872898
year
Long-term account payable due within
1554108340939718
one year
Lease liabilities due within one year 1103785 1079363
Total 1540485695 1248891979
28. Other current liabilities
Unit: RMB
Item 30 June 2024 1 January 2024
Output VAT to be transferred 39834736 44121680
Supply chain financial notes etc. 121676275
Notes that did not meet the conditions for
257030390288534731
derecognition
Total 296865126 454332686
29. Long-term borrowings
（1）Types of long-term borrowings
Unit: RMB
Item 30 June 2024 1 January 2024
Guaranteed loan 6019971035 5478771574
Credit loan 2254490000 1949750000
Subtotal 8274461035 7428521574
Less: Long-term borrowings due within
15238408271206872898
one year
Total 6750620208 6221648676
66CSG HOLDING CO. LTD. Financial Report of Semi-annual Report 2024
30. Lease liabilities
Unit: RMB
Item 30 June 2024 1 January 2024
Lease liabilities 15783063 16213925
Less: Lease liabilities due within one
11037851079363
year
Total 14679278 15134562
31. Long-term account payable
Unit: RMB
Item 30 June 2024 1 January 2024
Long-term account payable 510957893 88204163
（1）Long-term payable listed by nature
Unit: RMB
Item 30 June 2024 1 January 2024
Finance lease payable 526498976 129143881
Less: Long-term payables due within one
1554108340939718
year
Total 510957893 88204163
32. Estimated liabilities
Unit: RMB
Item 30 June 2024 1 January 2024 Causes
Estimated mine rehabilitation
Retirement obligation 12031343 11798141
costs
Pending litigation 1251941
Total 12031343 13050082
33. Deferred income
Unit: RMB
Increase in current Decrease in current
Item 1 January 2024 30 June 2024
period period
Government grants 430143830 38341600 27058673 441426757
Total 430143830 38341600 27058673 441426757
34. Share capital
Unit: RMB
1 January 2024 Movement for current period 30 June 2024
67CSG HOLDING CO. LTD. Financial Report of Semi-annual Report 2024
New Transfer from
Bonus issue Others Sub-total
issues capital surplus
Total number
of ordinary 3070692107 3070692107
shares
35. Capital surplus
Unit: RMB
Increase in Decrease in
Item 1 January 2024 30 June 2024
current period current period
Share premium 649166589 649166589
Other capital surplus -58427175 -58427175
Total 590739414 590739414
36. Other comprehensive income
Unit: RMB
Other comprehensive income for current period
Actual
1 January Attributable to
Item amount Attributable to
2024 Less: Income minority
30 June 2024
before tax parent company
tax expenses shareholders
for current after tax
after tax
period
I. Other
comprehensive
income items which
1773844711217389178601860
will be reclassified
subsequently to
profit or loss
Difference on
translation of
13682674121738914900063
foreign currency
financial statements
Financial rewards
for energy-saving 2550000 2550000
technical retrofits
Income generated
when self-property
and land use rights 161151797 161151797
are converted into
investment property
Total 177384471 1217389 178601860
37. Special reserve
Unit: RMB
Increase in current Decrease in current
Item 1 January 2024 30 June 2024
period period
68CSG HOLDING CO. LTD. Financial Report of Semi-annual Report 2024
Safety production costs 1411139 3139075 1186314 3363900
Total 1411139 3139075 1186314 3363900
38. Surplus reserve
Unit: RMB
Increase in current Decrease in current
Item 1 January 2024 30 June 2024
period period
Statutory surplus
12762107301276210730
reserve
Discretionary surplus
127852568127852568
reserve
Total 1404063298 1404063298
39. Undistributed profits
Unit: RMB
Item H1 2024 H1 2023
Undistributed profits at the end of the previous
88065497887786968455
period before adjustments
Undistributed profits at the beginning of the period
88065497887786968455
after adjustments
Add: Net profits attributable to shareholders of
733111562889478780
parent company in current period
Less: Appropriation for statutory surplus reserve
Ordinary share dividends payable 767673027
Undistributed profits at the end of the period 8771988323 8676447235
40. Operating income and operating costs
Unit: RMB
H1 2024 H1 2023
Item
Revenue Cost Revenue Cost
Principal operation 8026214086 6330753454 8269985146 6451841635
Other operations 52756565 2585051 119355099 43554296
Total 8078970651 6333338505 8389340245 6495395931
41. Taxes and surcharges
Unit: RMB
Item H1 2024 H1 2023
Housing property tax 24262618 20987873
Land use rights 13293655 10894279
Urban maintenance and construction tax 10630321 18676773
Educational surtax 9140452 14886892
69CSG HOLDING CO. LTD. Financial Report of Semi-annual Report 2024
Item H1 2024 H1 2023
Stamp tax 4953753 6454506
Environmental tax 2960497 2815691
Others 2664381 1662990
Total 67905677 76379004
42. General and administrative expenses
Unit: RMB
Item H1 2024 H1 2023
Employee benefits 213862214 198481504
Depreciation and amortization 106703302 70577321
General office expenses 14096760 14943321
Labour union funds 12098064 10994483
Entertainment fees 10454102 8997162
Consulting advisers 5655089 3919242
Canteen costs 4955469 5641281
Business travel expenses 4479971 4438258
Water and electricity fees 3475192 3542076
Vehicle use fees 2277382 3500710
Rental fees 659536 1025672
Others 15803933 14191742
Total 394521014 340252772
43. Selling and distribution expenses
Unit: RMB
Item H1 2024 H1 2023
Employee benefits 110767294 99419222
Entertainment fees 9996939 8645368
Business travel expenses 6358650 6194559
Rental fees 5445122 5713495
Office expenses 1543766 1768037
Freight expenses 1199242 3390552
Insurance fees 766925 2528186
Vehicle use fees 664626 4656501
Others 18261137 14540221
Total 155003701 146856141
44. Research and development expenses
Unit: RMB
70CSG HOLDING CO. LTD. Financial Report of Semi-annual Report 2024
Item H1 2024 H1 2023
Research and development expenses 336673375 346264501
Total 336673375 346264501
45. Financial expenses
Unit: RMB
Item H1 2024 H1 2023
Interest expenses 115225970 113306203
Interest income -31170207 -45500449
Exchange gains and losses -10609069 3203357
Others 2402731 1755534
Total 75849425 72764645
46. Other Income
Unit: RMB
Sources of other income H1 2024 H1 2023
Government subsidy amortization 27058673 21916903
Tax benefits and rebates 61735134 2374350
Industry support funds 11125627 800000
Government incentive funds 11286068 18216697
Research grants 2882320 1528784
Others 2606814 2367105
Total 116694636 47203839
47. Investment income
Unit: RMB
Item H1 2024 H1 2023
Debt restructuring income 569142
Interest on note discounting -6356329 -5617361
Income from term deposits etc. 924109 1534181
Total -4863078 -4083180
48. Credit impairment loss
Unit: RMB
Item H1 2024 H1 2023
Losses on bad debts of accounts
5159904-7621521
receivable
Losses on bad debts of notes receivable -238449
Losses on bad debts of other receivables 2459450 20297
71CSG HOLDING CO. LTD. Financial Report of Semi-annual Report 2024
Total 7380905 -7601224
49. Asset impairment loss
Unit: RMB
Item H1 2024 H1 2023
Decline in the value of inventories -41315915 24908
Total -41315915 24908
50. Income on disposal of assets
Unit: RMB
Source of income on disposal of assets H1 2024 H1 2023
Gain/loss on disposal of non-current assets 4202074 53451
Total 4202074 53451
51. Non-operating revenue
Unit: RMB
Amount booked into
Item H1 2024 H1 2023 current non-recurring
profits and losses
Amounts unable to pay 1587975 4901175 1587975
Compensation income 958059 165653 958059
Insurance claims 3212700
Others 2382760 1173805 2382760
Total 4928794 9453333 4928794
52. Non-operating expenses
Unit: RMB
Amount booked into
Item H1 2024 H1 2023 current non-recurring
profits and losses
Donation 171400 300614 171400
Losses due to damage or
24468161336772446816
scrapping of non-current assets
Compensation 30225
Others 562279 22284 562279
Total 3180495 486800 3180495
72CSG HOLDING CO. LTD. Financial Report of Semi-annual Report 2024
53. Income tax expenses
（1）Income tax expense details
Unit: RMB
Item H1 2024 H1 2023
Current income tax 144518913 84300053
Deferred income tax -66291256 -10205883
Total 78227657 74094170
（2）Adjustment process of accounting profit and income tax expenses
Unit: RMB
Item H1 2024
Total profit 799525875
Income tax expenses calculated at applicable tax rates 122777660
Costs expenses and losses not deductible for tax purposes 731434
Effect of deductible loss on usage of unconfirmed deferred income tax assets
-28776991
in the prior period
Effect of deductible temporary difference or deductible loss on unconfirmed
939783
deferred income tax in the current period
The impact of tax rate changes
Adjustments to income taxes in prior periods -8301789
Effect of obtaining tax incentives -9142440
Income tax expenses 78227657
54. Other comprehensive income
See Note Other comprehensive income for details
55. Notes to the cash flow statement
（1）Cash received relating to other operating activities
Unit: RMB
Item H1 2024 H1 2023
Security deposits received for operating
140939522
purposes
Government grants 75274086 41458937
Interest income 31108379 45474892
Others 14192962 7273702
Total 120575427 235147053
73CSG HOLDING CO. LTD. Financial Report of Semi-annual Report 2024
（2）Cash paid relating to other operating activities
Unit: RMB
Item H1 2024 H1 2023
Security deposits 73884621
Entertainment fees 25630075 21343865
General office expenses 24410473 22506207
Canteen costs 20422983 20838907
Maintenance fee 19543932 17742387
Business travel expenses 16895349 14512458
Insurance fees 8138926 21517337
Consulting advisers 7487681 8326998
Rental expenses 7218739 9824468
Vehicle use fee 3620924 10230122
Bank handling charges 2030056 1820613
Others 62170291 57501774
Total 271454050 206165136
（3）Cash received relating to other investing activities
Unit: RMB
Item H1 2024 H1 2023
Security deposits received 22629490
Amounts received that had been
10000000
previously paid on behalf of others
Total 32629490
（4）Cash paid relating to other investing activities
Unit: RMB
Item H1 2024 H1 2023
Security deposits 26244829
Total 26244829
（5）Cash paid related to significant investment activities
Unit: RMB
Item H1 2024 H1 2023
Engineering project construction
14925127381714949765
expenditure
Financial investment expenses 162800000 20000000
Total 1655312738 1734949765
74CSG HOLDING CO. LTD. Financial Report of Semi-annual Report 2024
（6）Cash received relating to other financing activities
Unit: RMB
Item H1 2024 H1 2023
Cash received in finance leases 458231000
Minority shareholder borrowings 12000000
Total 458231000 12000000
（7）Cash payments relating to other financing activities
Unit: RMB
Item H1 2024 H1 2023
Lease repayments 84615538 22948274
Security deposits 600000
Repayments for minority shareholder
1200000
borrowings
Others 106000
Total 86415538 23054274
（8）Changes in various liabilities arising from financing activities
Unit: RMB
Increase in current period Decrease in current period
Item 1 January 2024 Non-cash Non-cash 30 June 2024
Cash changes Cash changes
changes changes
Short-term loan 436853583 189010732 329980170 7533263 288350882
Long-term borrowings
(including long-term
742852157414159926545700531938274461035
borrowings due within
one year)
Bonds payable
(including bonds
payable due within one
year)
Total 7865375157 1605003386 900033363 7533263 8562811917
56. Supplementary information to the cash flow statement
（1）Supplementary information to the cash flow statement
Unit: RMB
Supplementary information H1 2024 H1 2023
1．Reconciliation from net profit to cash flows from operating activities
Net profit 721298218 881897408
Add: Provision for asset impairment 41315915 -24908
75CSG HOLDING CO. LTD. Financial Report of Semi-annual Report 2024
Supplementary information H1 2024 H1 2023
Provision for credit impairment -7380905 7601224
Depreciation of fixed assets oil and gas assets and productive living assets 579893996 550154625
Depreciation of right-of-use assets 968661 319141
Amortization of intangible assets 73423420 43479477
Amortization of long-term prepaid expenses 4176445 1878327
Losses (gains) on disposal of fixed assets intangible assets and other long-term
-4202074-53451
asset ("-" for gains)
Financial expenses ("-" for gains) 104616901 113306203
Investment loss ("-" for gains) -1493251 4083180
Decrease in deferred tax assets ("-" for increase) -61234259 -4999507
Increase in deferred tax liabilities ("-" for decrease) -5056997 -5206376
Decrease in inventories ("-" for increase) -429833376 -306915534
Decrease/(increase) in operating receivables ("-" for increase) -42729653 -825895694
Increase in operating payables ("-" for decrease) 16382029 53764086
Others 3139075 5038984
Net cash flows from operating activities 993284145 518427185
2． Net changes in cash and cash equivalents:
Cash and cash equivalents at end of period 3477639345 2639260140
Less: Cash and cash equivalents at beginning of period 3051261655 4594018251
Net increase in cash and cash equivalents 426377690 -1954758111
（2）Cash and cash equivalents composition
Unit: RMB
Item 30 June 2024 1 January 2024
I. Cash and cash equivalents 3477639345 3051261655
Bank deposits that can be readily
34776393453051261655
drawn on demand
Other cash balances that can be
readily drawn on demand
II. Cash and cash equivalents at end of period 3477639345 3051261655
（3）Monetary funds other than cash and cash equivalents
Unit: RMB
Reasons why it is not cash
Item H1 2024 H1 2023
and cash equivalents
Security deposits frozen
Other monetary fund 141639610 20057007 amounts etc. of which the use
is restricted
Total 141639610 20057007
76CSG HOLDING CO. LTD. Financial Report of Semi-annual Report 2024
57. Monetary items denominated in foreign currencies
（1）Monetary items denominated in foreign currencies
Unit: RMB
Balances denominated in Balances denominated in
Item Exchange rates
foreign currencies RMB
Cash at bank and on hand 73440388
Including：USD 9990360 7.1268 71199296
EUR 6618 7.6617 50704
HKD 2097524 0.9127 1914410
JPY 6005101 0.0447 268428
SGD 710 5.2790 3750
AUD 797 4.7650 3800
Accounts receivable 173160070
Including：USD 22646920 7.1268 161400066
EUR 834785 7.6617 6395875
HKD 5877209 0.9127 5364129
Accounts payable 30732596
Including：USD 4046598 7.1268 28839292
EUR 206887 7.6617 1585103
GBP 11000 9.0430 99473
JPY 4669530 0.0447 208728
58. Leases
（1） The Company as the lessee
√ Applicable □ Not applicable
Variable lease payments not included in the measurement of lease liabilities
□ Applicable √ Not applicable
Lease costs for short-term leases or low-value assets that adopt a simplified accounting approach:
For January-June 2024 lease costs for the Group’s short-term leases or low-value assets that adopt a simplified accounting
approach were RMB 6083242.Sale-leasebacks:
For January-June 2024 the total cash outflow amount in relation to sale-leasebacks was RMB 69192468.VIII. R&D SPENDING
Unit: RMB
Item H1 2024 H1 2023
Material 158306519 177053665
Labor costs 137105995 137509742
77CSG HOLDING CO. LTD. Financial Report of Semi-annual Report 2024
Fees and others 41260861 42678805
Total 336673375 357242212
Among them: expense 336673375 346264501
Capitalization 10977711
IX. THE CHANGES OF CONSOLIDATION SCOPE
1. Changes in scope of consolidation due to other reasons
On 10 April 2024 the Group established Chengdu CSG New Energy Co. Ltd. As of 30 June 2024 the Group has not contributed
any capital and the Group holds 100% of its equities.X. EQUIRTY IN OTHER ENTITIES
1. Interest in subsidiaries
（1）Constitution of the Group
Unit: RMB
Major Place of Shareholding Method of
Name of Registered
business registratio Scope of business acquisitio
subsidiary capital
Indir
location n Direct ect n
Chengdu Chengdu Development production and Establish
Chengdu CSG 260000000 75% 25%
PRC PRC sales of special glass ment
Sichuan CSG Energy Chengdu Chengdu
180000000 Intensive processing of glass 75% 25% Separation
Conservation PRC PRC
Tianjin Tianjin Establish
Tianjin Energy Conservation 336000000 Intensive processing of glass 75% 25%
PRC PRC ment
Dongguan Donggua Establish
Dongguan CSG Engineering 240000000 Intensive processing of glass 75% 25%
PRC n PRC ment
Dongguan Donggua Production and sales of special Establish
Dongguan CSG Solar 480000000 75% 25%
PRC n PRC glass and photovoltaic glass ment
Dongguan Donggua Production and sales of hi-tech Establish
Dongguan CSG PV-tech 516000000 100%
PRC n PRC green battery and components ment
Yichang Yichang Production and sales of high- Establish
Yichang CSG Polysilicon 1467980000 75% 25%
PRC PRC purity silicon materials ment
Wujiang Wujiang Establish
Wujiang CSG Engineering 320000000 Intensive processing of glass 75% 25%
PRC PRC ment
Yongqing Yongqing Production and sales of special Establish
Hebei CSG (note 1) 48066000 75% 25%
PRC PRC glass ment
Wujiang Wujiang Production and sales of special Establish
Wujiang CSG 565041798 100%
PRC PRC glass ment
Hong Hong
China Southern Glass (Hong Establish
86440000 Kong Kong Investment holding 100%
Kong) Limited (note 2) ment
PRC PRC
Xianning Xianning Production and sales of special Establish
Xianning CSG 235000000 75% 25%
PRC PRC glass and photovoltaic glass ment
78CSG HOLDING CO. LTD. Financial Report of Semi-annual Report 2024
Major Place of Shareholding Method of
Name of Registered
business registratio Scope of business Indir acquisitio
subsidiary capital
location n Direct ect n
Xianning Xianning
Xianning CSG Energy-Saving 215000000 Intensive processing of glass 75% 25% Separation
PRC PRC
Qingyuan CSG Energy- Qingyuan Qingyuan Production and sales of ultra- Establish
1055000000100%
Saving PRC PRC thin electronic glass ment
Shenzhen CSG Financial Shenzhen Shenzhen Establish
300000000 Finance leasing etc. 75% 25%
Leasing Co. Ltd. PRC PRC ment
Jiangyou CSG Mining Jiangyou Jiangyou Production and sales of silica Establish
100000000100%
Development Co. Ltd. PRC PRC and its by-products ment
Shenzhen Shenzhen Production and sales of display Acquisitio
Shenzhen CSG Display: 143000000 60.8%
PRC PRC component products n
Zhaoqing Energy Saving Zhaoqing Zhaoqing Establish
200000000 Intensive processing of glass 100%
Company PRC PRC ment
Zhaoqing Automobile Zhaoqing Zhaoqing Establish
200000000 Intensive processing of glass 100%
Company PRC PRC ment
Fengyang Fengyang Production and sales of Establish
Anhui Energy Company 1750000000 100%
PRC PRC photovoltaic glass ment
Fengyang Fengyang Production and sales of solar Establish
Anhui Quartz Company 75000000 100%
PRC PRC glass products ment
Anhui Silicon Valley Mingdu Fengyang Fengyang Establish
360000000 Mineral resources exploitation 60%
Mining Company PRC PRC ment
Xi'an energy conservation Xi’an Xi’an Establish
150000000 Intensive processing of glass 55% 45%
company PRC PRC ment
Delingha Delingha Production and sales of high Establish
Qinghai New Energy 1350000000 100%
PRC PRC purity silicon products ment
Guangxi New Energy Beihai Beihai Production and sales of Establish
60000000075%25%
Materials Company PRC PRC photovoltaic glass ment
Note 1: The registered capital of Hebei CSG is in USD.Note 2: The registered capital of China Southern Glass (Hong Kong) Limited is in HKD.XI. GOVERNMENT GRANTS
1. Liabilities involving government grants
√ Applicable □ Not applicable
Unit: RMB
Amount
Amount
included in Asset
Accounting Increase in transferred to
1 January 2024 non-operating 30 June 2024 related/income
item current period other income in
income in related
current period
current period
Asset
Deferred
430143830 38341600 27058673 441426757 related/income
income
related
Total 430143830 38341600 27058673 441426757
79CSG HOLDING CO. LTD. Financial Report of Semi-annual Report 2024
2. Government grants included in current profits and losses
√ Applicable □ Not applicable
Unit: RMB
Accounting item H1 2024 H1 2023
Amortization of government subsidies 27058673 21916903
Other government subsidies 31507137 28608269
Total 58565810 50525172
XII. FINANCIAL INSTRUMENT RISK MANAGEMENT
The Group's main financial instruments include monetary funds notes receivable accounts receivable receivable financing other
receivables non-current assets due within one year other current assets notes payable accounts payable Other payables short-
term borrowings trading financial liabilities non-current liabilities due within one year long-term borrowings bonds payable
lease liabilities and long-term payables. Details of each financial instrument have been disclosed in the relevant notes. The risks
associated with these financial instruments and the risk management policies adopted by the Group to mitigate these risks are
described below. The management of the Group manages and monitors these risk exposures to ensure that the above risks are
controlled within limited limits.
1. Risk management objectives and policies
The main risks caused by the Group's financial instruments are credit risk liquidity risk and market risk (including exchange rate
risk interest rate risk and commodity price risk).The Group's overall risk management plan addresses the unpredictability of financial markets and strives to reduce potential
adverse effects on the Group's financial performance.The Group has formulated risk management policies to identify and analyze the risks faced by the Group set appropriate risk
acceptance levels and design corresponding internal control procedures to monitor the Group's risk levels. The Group will
regularly reassess these risk management policies and related internal control systems to adapt to changes in market conditions or
the Group's operating activities. The internal audit department also regularly and irregularly checks whether the implementation of
the internal control system complies with the risk management policy.The Board of Directors is responsible for planning and establishing the Group's risk management structure formulating the
Group's risk management policies and relevant guidelines and supervising the implementation of risk management measures. The
Group has formulated risk management policies to identify and analyze the risks faced by the Group. These risk management
policies clearly define specific risks and cover many aspects such as market risk credit risk and liquidity risk management. The
Group regularly assesses changes in the market environment and the Group's operating activities to determine whether to update
risk management policies and systems. The Group's risk management is carried out by relevant departments in accordance with
policies approved by the Board of Directors. These departments identify evaluate and avoid relevant risks through close
cooperation with other business departments of the Group.The Group diversifies financial instrument risks through appropriate diversification of investments and business portfolios and
reduces risks concentrated in a single industry specific region or specific counterparty by formulating corresponding risk
management policies.
（1）Credit risk
Credit risk refers to the risk that the counterparty fails to perform its contractual obligations resulting in financial losses to the
Group.The Group manages credit risks by portfolio classification. Credit risk mainly arises from bank deposits bills receivable accounts
receivable other receivables etc.The Group's bank deposits are mainly deposited in state-owned banks and other large and medium-sized listed banks. The Group
expects that there will be no significant credit risk in bank deposits.For notes receivable accounts receivable other receivables and long-term receivables the Group sets relevant policies to control
credit risk exposure. The Group evaluates the customer's credit qualifications and sets corresponding credit periods based on the
customer's financial status credit history and other factors such as current market conditions. The Group will regularly monitor
80CSG HOLDING CO. LTD. Financial Report of Semi-annual Report 2024
customer credit records. For customers with poor credit records the Group will use written reminders shorten the credit period or
cancel the credit period to ensure that the Group's overall credit risk is within a controllable range. .The debtors of the Group's accounts receivable are customers located in different industries and regions. The Group continues to
conduct credit assessments on the financial status of accounts receivable and purchases credit guarantee insurance when
appropriate.The Group's maximum exposure to credit risk is the carrying amount of each financial asset on the balance sheet. The Group does
not provide any other guarantees that may expose the Group to credit risk. Among the Group's accounts receivable those from the
top five customers(mainly photovoltaic glass customers) accounted for 30% of the Group's total accounts receivable (2023:
39%).These customers are all industry leaders with good credit thus reducing the risk of accounts receivable recovery for this
group. Among the Group's other receivables those from the top five companies in terms of arrears. Other receivables account for
88% of the Group's total other receivables (2023: 87%).
（2）Liquidity risk
Liquidity risk refers to the risk that the Group encounters a shortage of funds when fulfilling its obligations to settle by delivering
cash or other financial assets.When managing liquidity risk the Group maintains and monitors cash and cash equivalents that management considers sufficient
to meet the Group's operating needs and reduce the impact of cash flow fluctuations. The management of the Group monitors the
use of bank borrowings and ensures compliance with borrowing agreements. At the same time obtain commitments from major
financial institutions to provide sufficient backup funds to meet short-term and long-term funding needs.At the end of the period the financial liabilities and off-balance sheet guarantee items held by the Group are analyzed based on the
maturity period of the undiscounted remaining contract cash flows as follows (unit: RMB):
30 June 2024
Item
Within 1 year 1-2 years 2-5 years Over 5 years Total
Financial liabilities:
Short-term borrowings 293776684 293776684
Notes payable 2509626956 2509626956
Accounts payable 3338914236 3338914236
Other payables 1160609297 1160609297
Non-current liabilities due
15676814901567681490
within one year
Other current liabilities 296865126 296865126
Long-term borrowings 221738975 2586683966 3521083493 1084806033 7414312467
Lease liabilities 1154300 3789641 9735337 14679278
Long-term payables 78423577 340888116 91646200 510957893
Total financial liabilities and
938921276426662618433865761250118618757017107423427
contingent liabilities
At the end of last year the financial liabilities and off-balance sheet guarantee items held by the Group were analyzed based on
the maturity period of the undiscounted remaining contract cash flows as follows (unit: RMB):
1 January 2024
Item
Within 1 year 1-2 years 2-5 years Over 5 years Total
Financial liabilities:
Short-term borrowings 442145185 442145185
Notes payable 2041353189 2041353189
Accounts payable 3341624602 3341624602
Other payables 484741877 484741877
Non-current liabilities due
12715010081271501008
within one year
Other current liabilities 454332686 454332686
Long-term borrowings 214670100 1941153526 3246286160 1584820574 6986930360
Lease liabilities 1128760 3705792 10300010 15134562
81CSG HOLDING CO. LTD. Financial Report of Semi-annual Report 2024
1 January 2024
Item
Within 1 year 1-2 years 2-5 years Over 5 years Total
Long-term payables 42003985 46200178 88204163
Total financial liabilities and
825036864719842862713296192130159512058415125967632
contingent liabilities
The amounts of financial liabilities disclosed in the table above represent undiscounted contractual cash flows and therefore may
differ from the carrying amounts in the balance sheet.
（3）Market risk
Market risk of financial instruments refers to the risk that the fair value or future cash flows of financial instruments fluctuate due
to market price changes including interest rate risk exchange rate risk and other price risks.Interest Rate Risk
Interest rate risk refers to the risk that the fair value or future cash flows of financial instruments will fluctuate due to changes in
market interest rates. Interest rate risk can arise from both recognized interest-bearing financial instruments and unrecognized
financial instruments (such as certain loan commitments).The Group's interest rate risk mainly arises from long-term interest-bearing debt such as long-term bank borrowings and bonds
payable. Financial liabilities with floating interest rates expose the Group to cash flow interest rate risk while financial liabilities
with fixed interest rates expose the Group to fair value interest rate risk. The Group determines the relative proportions of fixed-
rate and floating-rate contracts based on the prevailing market environment and maintains an appropriate mix of fixed-rate and
floating-rate instruments through regular review and monitoring.The Group pays close attention to the impact of interest rate changes on the Group's interest rate risk. The Group currently does
not adopt an interest rate hedging policy. However management is responsible for monitoring interest rate risk and will consider
hedging significant interest rate risk if necessary. An increase in interest rates will increase the cost of new interest-bearing debt
and the interest expense of the Group's unpaid interest-bearing debt with floating interest rates and will have a significant adverse
impact on the Group's financial results. The management will base on the latest market trends Adjustments are made in a timely
manner to the situation and these adjustments may be through interest rate swap arrangements to reduce interest rate risk.The interest-bearing financial instruments held by the Group are as follows (unit: RMB):
Item 30 June 2024 1 January 2024
Contracts at fixed rates 1075553150 1123875582
Contracts at floating rates 5675067058 5097773094
Total 6750620208 6221648676
Exchange rate risk
Exchange rate risk refers to the risk that the fair value or future cash flows of financial instruments will fluctuate due to changes in
foreign exchange rates. Exchange rate risk can arise from financial instruments denominated in foreign currencies other than the
functional currency of accounting.Exchange rate risk is mainly due to the impact of the Group's financial position and cash flows on foreign exchange rate
fluctuations. Except for the subsidiaries established in Hong Kong that hold assets settled in Hong Kong dollars the proportion of
foreign currency assets and liabilities held by the Group to the overall assets and liabilities is not significant. Therefore the Group
believes that the exchange rate risk it faces is not significant.At the end of the period the amounts of foreign currency financial assets and foreign currency financial liabilities held by the
Group converted into RMB are listed as follows (unit: RMB ) :
Foreign currency liabilities Foreign currency assets
Item
30 June 2024 1 January 2024 30 June 2024 1 January 2024
USD 28839292 26941200 232599362 297351920
HKD 54917 7278539 15309673
Others 1893304 1642375 6722557 7102354
Total 30732596 28638492 246600458 319763947
82CSG HOLDING CO. LTD. Financial Report of Semi-annual Report 2024
The Group pays close attention to the impact of exchange rate changes on the Group's exchange rate risk. Management is
responsible for monitoring exchange rate risk and will consider hedging significant exchange rate risk if necessary.As of 30 June 2024 for the Group's various U.S. dollar financial assets and U.S. dollar financial liabilities if the RMB appreciates
or depreciates by 10% against the U.S. dollar and other factors remain unchanged the Group's net profit will decrease or increase
by approximately RMB 17319606. (31 December 2023: decrease or increase of approximately RMB 22984911).
2. Capital management
The goal of the Group's capital management policy is to ensure that the Group can continue to operate thereby providing returns to
shareholders and benefiting other stakeholders while maintaining an optimal capital structure to reduce capital costs.In order to maintain or adjust the capital structure the Group may adjust financing methods adjust the amount of dividends paid to
shareholders return capital to shareholders issue new shares and other equity instruments or sell assets to reduce debt.The Group monitors the capital structure based on the asset-liability ratio (i.e. total liabilities divided by total assets). At the end of
the period the Group's asset-liability ratio was 55% (end of the previous year: 52%).XIII. DISCLOSURE OF FAIR VALUE
1. Closing balance of assets and liabilities measured at fair value
Unit: RMB
Closing fair value
Item
Level 1 Level 2 Level 3 Total
Financial assets at fair value
through other comprehensive -- -- -- --
income
Receivables financing 622130245 622130245
Investment properties 292711858 292711858
Total 292711858 622130245 914842103
XIV. RELATED PARTIES AND RELATED PARTY TRANSACTIONS
1. Information of the parent company
The Company regards no entity as the parent company.
2. The subsidiariesThe general information and other related information of the subsidiaries are set out in Note “X. EQUIRTY IN OTHERENTITIES”.
3. General information of the Group’s associate
None
4. Other related parties information
Name of Other Related Party Relationship with the Group
Qianhai Life Insurance Co. Ltd The largest shareholder of the Company
Shantou Chaoshang Urban Comprehensive Management Co. Related party of the Company's largest shareholder
83CSG HOLDING CO. LTD. Financial Report of Semi-annual Report 2024
Name of Other Related Party Relationship with the Group
Ltd
Qianhai Life Insurance (Xi'an) Hospital Co. Ltd. Related party of the Company's largest shareholder
Shenzhen Baoyao Construction Engineering Co. Ltd. Related party of the Company's largest shareholder
Shenzhen Hongtu Construction Co. Ltd. Related party of the Company's largest shareholder
Suzhou Baoqi Logistics Co. Ltd. Related party of the Company's largest shareholder
Shantou Laihua Industrial Co. Ltd. Related party of the Company's largest shareholder
Shen Zhen Golden Flourish Supply Chain Limited Related party of the Company's largest shareholder
5. Related party transactions
（1）Purchase and sales of goods and rendering and receiving services
Table on purchase of goods/receiving of services
Unit: RMB
Related parties Related transaction H1 2024 H1 2023
Qianhai Life Insurance Co.Receive service 3724810 3787542
Ltd
Total 3724810 3787542
Table on sales of goods/providing of services
Unit: RMB
Related parties Related transaction H1 2024 H1 2023
Qianhai Life Insurance (Xi'an)
Sales of goods 1446563
Hospital Co. Ltd.Shenzhen Baoyao Construction
Sales of goods 107329
Engineering Co. Ltd.Shantou Chaoshang Urban
Sales of goods 478927
Comprehensive Management Co. Ltd
Shantou Laihua Industrial Co. Ltd. Sales of goods 71645
Total 1553892 550572
6. Receivables from and payables to related parties
（1）Receivables from related parties
Unit: RMB
30 June 2024 1 January 2024
Item Related parties Carrying Provision for bad Carrying Provision for
amount debts amount bad debts
Accounts Shenzhen Hongtu Construction
8652356738279386523567382793
receivable Co. Ltd.Accounts Qianhai Life Insurance (Xi'an)
1927163854
receivable Hospital Co. Ltd.Accounts Shen Zhen Golden Flourish Supply
22090209862209020986
receivable Chain Limited
Advances Qianhai Life Insurance Co. Ltd 119625 4441
84CSG HOLDING CO. LTD. Financial Report of Semi-annual Report 2024
30 June 2024 1 January 2024
Item Related parties Carrying Provision for bad Carrying Provision for
amount debts amount bad debts
to
suppliers
Total 8986787 7407633 8678887 7403779
（2）Payables to related parties
Unit: RMB
Item Related parties 30 June 2024 1 January 2024
Accounts
Suzhou Baoqi Logistics Co. Ltd 308667 314667
payable
Other payables Qianhai Life Insurance Co. Ltd 6646 386589
Contract
Other related parties 411875 504538
liabilities
Total 727188 1205794
XV. SHARE-BASED PAYMENTS
1. Overall share-based payments
None
2. Equity-settled share-based payments
None
3. Cash-settled share-based payments
None
4. Share-based payments in the current period
None
XVI. COMMITMENTS AND CONTINGENCIES
1. Significant 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:
Unit: RMB
Item 30 June 2024 1 January 2024
Buildings machinery and equipment 1673293474 3010778541
85CSG HOLDING CO. LTD. Financial Report of Semi-annual Report 2024
2. Contingencies
Contingent liabilities arising from pending litigation and arbitration and their financial impact
Unit: RMB
Cause of Court of Target
Plaintiff Defendant Case progress
action acceptance amount
Disputes over
Zeng Nan Luo Youming Wu
liability for Shenzhen
Guobin Ding Jiuru Li Under second
The Company (note 1) harming Intermediate 229200087
Weinan Yichang Hongtai trial
company People's Court
Real Estate Co. Ltd.interests
Fengyang Wenyang Disputes over
Anhui CSG New Energy Fengyang
Building and creditor's
Materials Technology Co. County 17349467 Under trial
Decoration Materials subrogation
Ltd. People's Court
Co. Ltd. (note 2) rights
Note 1: The Company requested the Defendants to jointly compensate the plaintiff for the RMB 171 million principal amount of
the subsidy funds granted by the government to the Group as well as the interest loss of RMB 58.2 million. As of the date of
disclosure of this Report the case is under trial. In relation to the matter of the RMB 171 million special fund for the introduction
of talents the Company filed a lawsuit against Zeng Nan et al. and Yichang Hongtai Real Estate Co. Ltd. on 15 December 2021
for infringement of rights and compensation which was formally accepted on 28 January 2022 by Shenzhen Intermediate People's
Court. The first instance of the case was heard at Shenzhen Intermediate People's Court on 21 June 2022. On 4 June 2024 the
Company received the first instance Civil Judgment issued by Shenzhen Intermediate People's Court which rejected all of the
Company's litigation requests. In June 2024 the Company filed an appeal to Guangdong Higher People's Court and the case is
currently in the process of the second instance.Note 2: The plaintiff sued Anhui New Energy for subrogation to bear the delayed payment and interest on the grounds that the
concrete from Hefei Construction Materials and Equipment Co. Ltd. was used in the civil construction project of the defendant
Anhui New Energy. As of the announcement date of this report the case is under trial. The Company has confirmed all accounts
payable with relevant payment obligations.XVII. POST-BALANCE SHEET EVENTS
None.XVIII. OTHER SIGNIFICANT EVENTS
1. Segment reporting
（1）Determination basis and accounting policy of report segment
Based on the Group's internal organizational structure management requirements and internal reporting system the Group's
operating business is divided into four reporting segments. These reporting segments are determined based on the financial
information required by the company for daily internal management. The Group's management regularly evaluates the operating
results of these reportable segments to determine the allocation of resources to them and evaluate their performance.The Group's reportable segments include:
-The Glass Division is responsible for the production and sales of float glass photovoltaic glass products architectural glass
products and silica sand required for the production of related glass.-The Electronic Glass and Display device Division is responsible for the production and sales of display components and special
ultra-thin glass products.
86CSG HOLDING CO. LTD. Financial Report of Semi-annual Report 2024
-The Solar Energy and Others segment is responsible for the production and sales of polysilicon and solar cell module products
photovoltaic energy development and other products.-Other unallocated divisions.Segment reporting information is disclosed based on the accounting policies and measurement standards adopted by each segment
when reporting to management. These accounting policies and measurement basis are consistent with those used when preparing
financial statements.
（2）Financial information of reporting segments
Unit: RMB
Electronic glass
Solar energy and Unallocated Inter-segment
Item Glass industry and Total
other industries amount elimination
display device
Revenue from
713219808263834837230545252029716778078970651
external customers
Inter-segment
665074077149072444181044193370462-375549637
revenue
Interest expenses 76856192 4356994 2258875 31753909 115225970
Depreciation and
amortization 470959748 110198227 68634265 8670282 658462522
expenses
Total profit/(loss) 876285926 -7528915 -93703707 24472571 799525875
Total assets 19645776935 3225766932 6861488006 2535923633 32268955506
Total liabilities 10521288872 563111651 2900262156 3790791317 17775453996
Increase in non-
7742458941799086498466824410540661777959068
current assets
87CSG HOLDING CO. LTD. Financial Report of Semi-annual Report 2024
XIX. NOTES TO THE KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS
1. Accounts receivable
（1）Disclosure by age
Unit: RMB
Aging 30 June 2024 1 January 2024
Within 1 year (including 1 year) 237211824 240038959
Total 237211824 240038959
（2） Classification by bad debt accrual method
Unit: RMB
30 June 2024 1 January 2024
Provision for Provision for
Carrying amount Carrying amount
bad debts bad debts
Category
Provi Book value Provi Book value
Propo Amo sion Propor sion
Amount Amount Amount
rtion unt propo tion propo
rtion rtion
Provision for
bad debts on
237211824100%237211824240038959100%240038959
a portfolio
basis
Total 237211824 100% 237211824 240038959 100% 240038959
（3）Accounts receivable details of the top 5 closing balances by debtors
Unit: RMB
Accounts receivable Percentage in total accounts receivable Provision for bad debts
Name
closing balance balance closing balance
Total balances for the five
largest accounts receivable 195525151 82%
Total 195525151 82%
2. Other receivables
Unit: RMB
Item 30 June 2024 1 January 2024
Dividends receivable 127775200 126870800
Other receivables 2409559249 2030231679
Total 2537334449 2157102479
88CSG HOLDING CO. LTD. Financial Report of Semi-annual Report 2024
（1）Dividends receivable
1）Disclosed by categories
Unit: RMB
Item 30 June 2024 1 January 2024
Dividends receivable from subsidiaries 127775200 126870800
Total 127775200 126870800
（2）Other receivables
1）Other receivables categorized by nature
Unit: RMB
Nature of receivables 30 June 2024 1 January 2024
Due from related parties 2287481057 1908899993
Others 173426727 172750521
Total 2460907784 2081650514
2） Disclosure by age
Unit: RMB
Aging 30 June 2024 1 January 2024
Within 1 year (including 1 year) 2093287353 1753727543
Over 1 year 367620431 327922971
Total 2460907784 2081650514
3） Classification by bad debt accrual method
Unit: RMB
30 June 2024
Carrying amount Provision for bad debts
Category
Accrual Book value
Amount Proportion Amount
proportion
Provision for bad
debts on an individual 171000000 7% 51300000 30% 119700000
basis
Provision for bad
debts on a portfolio 2289907784 93% 48535 2289859249
basis
Including:
Related party
228748105793%2287481057
combination
Unrelated party
2426727485352%2378192
combination
Total 2460907784 100% 51348535 2% 2409559249
89CSG HOLDING CO. LTD. Financial Report of Semi-annual Report 2024
(Continued)
1 January 2024
Carrying amount Provision for bad debts
Category
Accrual Book value
Amount Proportion Amount
proportion
Provision for bad debts
1710000008%5130000030%119700000
on an individual basis
Provision for bad debts
191065051492%1188351910531679
on a portfolio basis
Including:
Related party
190889999392%1908899993
combination
Unrelated party
17505211188357%1631686
combination
Total 2081650514 100% 51418835 2% 2030231679
Provision for bad debts on an individual basis:
Unit: RMB
1 January 2024 30 June 2024
Item Provision for Carrying Provision for Provision Reason for
Carrying amount
bad debts amount bad debts proportion provision
Provision for bad
debts on an
individual basis
171000000 51300000 171000000 51300000 30% Under trial
which is of a
significant single
amount
Total 171000000 51300000 171000000 51300000
Provision for bad debts on a portfolio basis:
Unit: RMB
30 June 2024
Item
Carrying amount Provision for bad debts Provision proportion
Unrelated parties 2426727 48535 2%
Total 2426727 48535
Provision for bad debts accrued on the basis of a general model of expected credit losses:
Unit: RMB
Stage 1 Stage 2 Stage 3
Expected credit Expected credit
Expected
loss for the loss for the
Provision for bad debt credit loss in Total
whole period whole period
the next 12
(no credit (with credit
months
impairment) impairment)
Amount on 1 January 2024 118835 51300000 51418835
Carrying amount on 1 January
2024
that in this period:
Provision for the period 5660 5660
90CSG HOLDING CO. LTD. Financial Report of Semi-annual Report 2024
Stage 1 Stage 2 Stage 3
Expected credit Expected credit
Expected
loss for the loss for the
Provision for bad debt credit loss in Total
whole period whole period
the next 12
(no credit (with credit
months
impairment) impairment)
Reverse for the period 75960 75960
Amount on 30 June 2024 48535 51300000 51348535
4） Bad debt provisions accrued recovered or reversed in the current period
Bad debt provisions in the current period:
Unit: RMB
Change in the current period
Category 1 January 2024 Recovered or 30 June 2024
Accrued Written off Others
reversed
Bad debt provisions for
5141883556607596051348535
other receivables
Total 51418835 5660 75960 51348535
5）Other receivables details of the top 5 closing balances by debtors
Unit: RMB
Percentage in total
Provision for bad
Name Nature of business 30 June 2024 Ageing other receivables
debts
balance
Advance payment
Company A 542285536 Within 1 year 22%
for other party
Advance payment
Company B 365065100 Within 1 year 15%
for other party
Advance payment
Company C 193858596 Within 1 year 8%
for other party
Advance payment
Company D 171000000 Over 5 years 7% 51300000
for other party
Advance payment
Company E 163405241 Within 1 year 7%
for other party
Total 1435614473 59% 51300000
3. Long-term equity investments
Unit: RMB
30 June 2024 1 January 2024
Item Impairment Carrying Impairment
Carrying amount Book value Book value
provision amount provision
Investment in
1024453376915000000102295337699821533769150000009806533769
subsidiaries
Total 10244533769 15000000 10229533769 9821533769 15000000 9806533769
91CSG HOLDING CO. LTD. Financial Report of Semi-annual Report 2024
（1）Investments in subsidiaries
Unit: RMB
Opening Movement in current period Closing
Opening book Closing book
Investee impairment Increase in Decrease in Impairment impairment value Others value provision investment investment provision provision
Chengdu CSG Company 151397763 151397763
Sichuan Energy Saving Company 119256949 119256949
Tianjin Energy Saving Company 247833327 247833327
Dongguan Engineering Company 222276243 222276243
Dongguan Solar Energy Company 355120247 355120247
Dongguan Photovoltaic Company 432112183 432112183
Yichang Silicon Material Company 909960170 909960170
Wujiang Engineering Company 254401190 254401190
Hebei CSG Company 266189705 266189705
CSG (Hong Kong) Co. Ltd. 87767304 87767304
Wujiang CSG Company 567645430 567645430
Jiangyou CSG Mining Development
102415096102415096
Co. Ltd.Xianning Float Company 181116277 181116277
Xianning Energy Saving Company 165452035 165452035
Qingyuan Energy Saving Company 885273105 885273105
Shenzhen CSG Financial Leasing Co.
133500000133500000
Ltd.Shenzhen Display Device Company 550765474 550765474
Zhaoqing Energy Saving Company 200000000 200000000
Zhaoqing CSG Automotive Glass Co.
159959074159959074
Ltd.Anhui New Energy Company 1550000000 200000000 1750000000
92CSG HOLDING CO. LTD. Financial Report of Semi-annual Report 2024
Opening Movement in current period Closing
Opening book Closing book
Investee impairment
value Increase in Decrease in Impairment
impairment
Others value provision investment investment provision provision
Anhui Quartz Company 75000000 75000000
Anhui Silicon Valley Mingdu Company 216000000 216000000
Xi'an Energy Saving Company 82500000 82500000
Guangxi New Energy Materials
227000000223000000450000000
Company
CSG (Suzhou) Corporate Headquarters
3000000030000000
Management Co. Ltd.Shenzhen CSG Quartz Materials
4000000040000000
Industrial Co. Ltd.Shenzhen CSG New Energy Industry
13500000001350000000
Development Co. Ltd.Others 243592197 15000000 243592197 15000000
Total 9806533769 15000000 423000000 10229533769 15000000
93CSG HOLDING CO. LTD. Financial Report of Semi-annual Report 2024
4. Operating income and operating costs
Unit: RMB
H1 2024 H1 2023
Item
Revenue Cost Revenue Cost
Principal operation 2824451 833033
Other operations 193179612 218992685
Total 196004063 219825718
5. Investment income
Unit: RMB
Item H1 2024 H1 2023
Investment income from long-term equity
6559006461680533152
investment under cost method
Others 924109 1534181
Total 656824755 1682067333
XX. SUPPLEMENTARY INFORMATION
1.Statement of non-recurring gains and losses
√ Applicable □ Not applicable
Unit: RMB
Item Amount Notes
Gains/losses from the disposal of non-current asset 4202074
Government subsidies included in the profit and loss of the current period (closely
related to the normal operation of the company in line with national policies and
58517357
provisions in accordance with the defined standards except government subsidies that
have a continuous impact on the profit and loss of the company)
In addition to the effective hedging business related to the normal operation of the
company the profit or loss of fair value changes arising from the holding of financial
assets and financial liabilities by non-financial enterprises and the loss or gain arising 924109
from the disposal of financial assets and financial liabilities and available for sale
financial assets
Reversal of provision for impairment of receivables that have been individually tested
6819779
for impairment
Profit and loss from debt restructuring 569142
Other non-operating income and expenditure except for the aforementioned items 1748299
Less: Impact on income tax 11058108
Impact on minority shareholders’ equity (post-tax) 1512282
Total 60210370 --
Particulars about other gains and losses that meet the definition of non-recurring gains and losses:
□ Applicable √ Not applicable
It did not exist that other profit and loss items met the definition of non-recurring gains and losses.
94CSG HOLDING CO. LTD. Financial Report of Semi-annual Report 2024
Explanation of the non-recurring gains and losses listed in the Explanatory Announcement No.1 on Information Disclosure for
Companies Offering their Securities to the Public - Non-recurring Gains and Losses as recurring gains and losses
□ Applicable √ Not applicable
2.ROE and earnings per share
Earnings per share
Weighted average return
Profit during the reporting period
on equity % Basic earnings per share Diluted earnings per share
(RMB/share) (RMB/share)
Net profit attributable to the
5.08%0.240.24
company’s ordinary shareholders
Net profit attributable to the
company's ordinary shareholders
4.67%0.220.22
after deducting non-recurring gains
and losses
95
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