CSG Holding Co. Ltd.2025
Audit Report
Grant Thornton Zhitong Certified Public Accountants LLPTable of Contents
Audit Report 1–7
Consolidated and Company Balance Sheets 1-4
Consolidated and Company Income Statements 5-7
Consolidated and Company Statements of Cash Flows 8-9
Consolidated and Company Statement of Changes in Equity 10–13
Notes to the Financial Statements 14–107Grant Thornton Zhitong Certified Public
Accountants LLP
No. 22 Jianguomenwai Avenue Chaoyang
District Beijing China
5th Floor Sait Plaza 22 Jianguomenwai
Avenue Chaoyang District Beijing China
Tel: +86 10 8566 5588
Fax: +86 10 8566 5120
www.grantthornton.cn
Audit Report
GTCNSZ（2026）NO.441A015902
To All Shareholders of CSG Holding Co. Ltd.:
I. Audit Opinion
We have audited the financial statements of CSG Holding Co. Ltd. (hereinafter referred to
as “the Group”) including the consolidated and company balance sheets as of December 31
2025; the consolidated and company income statements consolidated and company cash flow
statements and consolidated and company statements of changes in equity for the year ended
December 31 2025; and the related notes to the financial statements.In our opinion the accompanying financial statements have been prepared in all material
respects in accordance with the Chinese Accounting Standards for Business Enterprises and
present fairly the consolidated and company financial position of the Group as of December 31
2025 and the consolidated and company results of operations and cash flows for the year
ended December 31 2025.II. Basis for the Audit Opinion
We conducted our audit in accordance with the Chinese Standards on Auditing. Thesection of the audit report titled “The Auditor’s Responsibilities for the Audit of FinancialStatements” further describes our responsibilities under these standards. In accordance
with the Code of Professional Ethics for Certified Public Accountants of China and the
Independence Requirements for Public Interest Entities under the Independence Standards
for Certified Public Accountants of China we are independent of the Group and have
fulfilled our other ethical responsibilities.We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our audit opinion.III. Key Audit Matters
1Key audit matters are those matters that based on our professional judgment we consider
to be of the most significance to the audit of the current period’s financial statements. The
treatment of these matters is in the context of our audit of the financial statements as a
whole and the formation of our audit opinion; we do not express a separate opinion on
these matters.(I) Revenue Recognition
For related disclosures please refer to Notes 3.26 and 5.42 to the financial statements.
1. Description of the Matter
The Group’s revenue primarily derives from the provision of float glass photovoltaic glass
architectural glass solar industry-related products electronic glass and display devices to
customers. As revenue is one of the Group’s key performance indicators and has a
significant impact on the financial statements we have identified revenue recognition as a
key audit matter.
2. Audit Response
We performed the following audit procedures primarily regarding revenue recognition:
(1) We obtained an understanding of and evaluated the design of internal controls related
to revenue recognition and tested the operating effectiveness of key control processes;
(2) We reviewed a sample of significant sales contracts identified contract terms and
conditions related to the timing of the transfer of control of the products and assessed
whether the Group’s specific revenue recognition methods comply with the provisions of
Chinese Accounting Standards for Business Enterprises;
(3) We performed substantive analysis procedures on operating revenue and gross profit
margin by month product and customer to identify any significant or unusual fluctuations
and analyze the causes of such fluctuations;
(4) Selected a sample to perform detailed testing of revenue recognized during the current
period; reviewed sales contracts; verified supporting documentation related to revenue
recognition (including purchase orders delivery receipts customs declarations and
2invoices); and in conjunction with customer payment status verified the authenticity and
accuracy of the revenue;
(5) Select clients using sampling methods and perform confirmation procedures on their
annual transaction amounts and accounts receivable balances;
(6) Perform cut-off tests on revenue recognized before and after the balance sheet date
obtain relevant supporting documents and verify key timing points for revenue recognition
to determine whether revenue was recognized in the appropriate period;
(7) Examine whether information related to revenue has been appropriately presented and
disclosed in the financial statements.(II) Provision for Impairment of Fixed Assets and Construction in Progress
For related disclosures please refer to Notes 3 16 17 and 22 to the financial statements
as well as Notes 5 12 13 and 52.
1. Description of the Matter
As of December 31 2025 the carrying amount of fixed assets in the Group’s consolidated
financial statements was RMB 13897777933 accounting for 44.39% of total assets in the
consolidated financial statements;The carrying amount of construction in progress was
RMB 4420551577 representing 14.12% of total assets in the consolidated financial
statements; asset impairment losses recognized for fixed assets during the reporting period
amounted to RMB 58043358 while asset impairment losses for construction in progress
totaled RMB 105283872.The management of the Group (hereinafter referred to as
“management”) assessed whether there were any indications of impairment for these fixed
assets and construction in progress; for fixed assets and construction in progress where
impairment indicators were identified management determined the amount of impairment
provisions to be recognized by estimating the recoverable amounts of the fixed assets and
construction in progress and comparing those recoverable amounts with their carrying
amounts.Since the identification of impairment indicators for fixed assets and construction
in progress and the measurement of their recoverable amounts involve significant
3accounting estimates and professional judgment by management we have identified the
provision for impairment of fixed assets and construction in progress as a key audit matter.
2. Audit Response
We performed the following audit procedures primarily regarding the provision for
impairment of fixed assets construction in progress:
(1) We obtained an understanding of and evaluated the design of internal controls related
to the management of fixed assets construction in progress and other related activities
and tested the operating effectiveness of key control processes;
(2) We reviewed the methods and assumptions used by the Group for impairment testing of
fixed assets and construction in progress and evaluated whether the asset impairment
methods applied by management comply with the requirements of Chinese Accounting
Standards for Business Enterprises;
(3) We conducted physical counts of fixed assets and construction in progress to observe
their storage and usage conditions;
(4) Recalculated the recoverable amounts of fixed assets and construction in progress and
had the valuation experts of the certified public accountants review the valuation methods
and key assumptions used by the external valuation firm engaged by management;
(5) Evaluate the competence professional qualifications and objectivity of the valuation
experts engaged by management and the valuation experts from the certified public
accounting firm.IV. Other Information
The Group’s management is responsible for the other information. The other information
includes the information contained in the Group’s 2025 Annual Report but excludes the
financial statements and our audit report.Our audit opinion on the financial statements does not cover the other information and we
do not express any form of assurance conclusion regarding the other information.
4In connection with our audit of the financial statements our responsibility is to read the
other information and in doing so consider whether the other information is materially
inconsistent with the financial statements or with our knowledge obtained during the audit
or appears to be subject to a material misstatement.Based on the work we have performed if we determine that the other information contains
a material misstatement we are required to report that fact. In this regard we have nothing
to report.V. Responsibilities of Management and Those Charged with Governance for the Financial
Statements
The Group's management is responsible for preparing the financial statements in
accordance with the provisions of the Chinese Accounting Standards for Business
Enterprises so that they present a true and fair view and for designing implementing and
maintaining the necessary internal controls to ensure that the financial statements are free
from material misstatement due to fraud or error.In preparing the financial statements management is responsible for assessing the
Group’s ability to continue as a going concern disclosing matters related to going concern
and using the going concern assumption unless management plans to liquidate the Group
discontinue operations or has no other realistic alternative.Those charged with governance are responsible for overseeing the Group’s financial
reporting process.VI. The Certified Public Accountant’s Responsibilities for the Audit of the Financial Statements
Our objective is to obtain reasonable assurance about whether the financial statements as
a whole are free from material misstatement due to fraud or error and to issue an audit
report that includes an audit opinion.Reasonable assurance is a high level of assurance
but it does not guarantee that an audit conducted in accordance with auditing standards
will always detect a material misstatement. Misstatements may result from fraud or error
and are generally considered material if it can be reasonably expected that the
5misstatement individually or in the aggregate could influence the economic decisions of
users of the financial statements.In conducting the audit in accordance with auditing standards we exercise professional
judgment and maintain professional skepticism. We also perform the following procedures:
(1) Identify and assess the risks of material misstatement of the financial statements due to
fraud or error; design and perform audit procedures to address these risks; and obtain
sufficient and appropriate audit evidence as a basis for expressing an audit opinion.Because fraud may involve collusion forgery intentional omissions misrepresentations or
circumvention of internal controls the risk of failing to detect a material misstatement
resulting from fraud is higher than the risk of failing to detect a material misstatement
resulting from error.
(2) Obtain an understanding of internal controls relevant to the audit in order to design
appropriate audit procedures.
(3) Evaluate the appropriateness of management’s selection of accounting policies and the
reasonableness of management’s accounting estimates and related disclosures.
(4) Form a conclusion regarding the appropriateness of management’s use of the going
concern assumption. At the same time based on the audit evidence obtained form a
conclusion regarding whether there is material uncertainty related to matters or conditions
that may cast significant doubt on the Group’s ability to continue as a going concern. If we
conclude that material uncertainty exists auditing standards require us to draw users’
attention in the audit report to the related disclosures in the financial statements; if the
disclosures are inadequate we are required to issue a non-unqualified opinion.Our
conclusions are based on information available as of the date of this audit report. However
future events or conditions may cause the Group to cease to be a going concern.
(5) Evaluate the overall presentation structure and content of the financial statements
and assess whether the financial statements fairly present the relevant transactions and
events.
6(6) Obtain sufficient and appropriate audit evidence regarding the financial information of
the entities or business activities within the Group to express an opinion on the financial
statements. We are responsible for directing overseeing and performing the Group audit
and we bear full responsibility for the audit opinion.We communicated with those charged with governance regarding the planned scope and
timing of the audit as well as significant audit findings including internal control
deficiencies of significance that we identified during the audit.We also provided a statement to those charged with governance regarding our compliance
with ethical requirements related to independence and communicated with those charged
with governance regarding all relationships and other matters that could reasonably be
considered to affect our independence as well as the related safeguards.From the matters communicated with those charged with governance we determine which
are most significant to the audit of the current financial statements and thus constitute key
audit matters. We describe these matters in our audit report unless public disclosure is
prohibited by law or regulation or in rare circumstances where we reasonably expect that
the adverse consequences of communicating a matter in the audit report would outweigh
the benefits to the public interest in which case we determine that the matter should not be
communicated in the audit report.Grant Thornton Zhitong Certified Public Accountants Certified Public
LLP Accountant of China
(Engagement Partner)
Beijing China Certified Public
Accountant of China
April 24 2026
7Consolidated Balance Sheet
Prepared by: CSG Holding Co. Ltd.December 31 2025
Unit: Yuan
Item Ending Balance Beginning Balance
Current Assets:
Cash and Cash Equivalents 3141975147 3421527482
Financial assets held for trading 230000000 96000000
notes receivable 1420061226 1140902743
accounts receivable 1802165051 1686627681
Receivables financing 533418878 798603111
Prepayments 134771994 121708264
Other receivables 54386121 165872735
inventories 1969149555 1587828028
assets held for sale 5262859
Other current assets 474226753 475617056
Total current assets 9765417584 9494687100
Non-current assets:
investment properties 286145387 293712453
fixed assets 13897777933 13166391449
construction in progress 4420551577 5350375132
right-of-use assets 64277229 64804837
intangible assets 2238041467 2361275093
goodwill 3039946 8593352
Deferred expenses 68644513 71254985
deferred tax assets 368236650 309995066
Other non-current assets 192896549 99328456
Total non-current assets 21539611251 21725730823
Total Assets 31305028835 31220417923
Current Liabilities:
short-term borrowings 1158648329 1163021299
Notes Payable 2557712651 2244413755
accounts payable 2769745963 3092025797
contract liabilities 369377265 354215784
employee compensation payable 329941978 347769466
taxes payable 73812602 73688362
Other payables 369513739 312816531
Of which: Interest payable 13362151 8946479
Dividends payable 34482724
Non-current liabilities due within one year 1881828060 2168856957
1Item Ending Balance Beginning Balance
Other current liabilities 320616877 218529333
Total Current Liabilities 9831197464 9975337284
Non-current liabilities:
long-term borrowings 6882862147 6151608472
Lease liabilities 23057883 21650607
Long-term payables 594270580 464617473
provisions 27378869 13137220
deferred income 301071111 487252038
deferred tax liabilities 90503199 104170857
Total non-current liabilities 7919143789 7242436667
Total Liabilities 17750341253 17217773951
Equity:
share capital 3070692107 3070692107
capital surplus 590739414 590739414
Less: Treasury stock 296770027
other comprehensive income 150816908 159726269
Special reserve 6302910 5079628
surplus reserve 1534714228 1485514182
retained earnings 8088993418 8224198195
Total equity attributable to the parent company 13145488958 13535949795
non-controlling interests 409198624 466694177
Total equity 13554687582 14002643972
Total Liabilities and Equity 31305028835 31220417923
Legal Representative: Head of Accounting: Head of Accounting Department：
2Parent Company Balance Sheet
Unit: Yuan
Item Ending Balance Opening Balance
Current Assets:
Cash and Cash Equivalents 742484026 1434524102
Financial assets held for trading 230000000 96000000
notes receivable 212074929 2300715
accounts receivable 274825872 110153840
Receivables financing 675552 82269158
Prepayments 8411632 758454
Other receivables 2852499592 2342796700
Of which: Dividends receivable 27873015
Other current assets 397702 3123645
Total current assets 4321369305 4071926614
Non-current assets:
long-term equity investment 10537821440 10550321440
fixed assets 5042527 6747771
intangible assets 12221050 11870899
Long-term deferred expenses 4303187 3920072
Other non-current assets 64131973 5383326
Total non-current assets 10623520177 10578243508
Total Assets 14944889482 14650170122
Current Liabilities:
short-term borrowings 315000000 335000000
Notes Payable 238668124 336581197
accounts payable 351782190 196674995
employee compensation payable 37636173 41561327
taxes payable 1909891 4552018
Other payables 2457593966 3050996384
Of which: Interest payable 6917879 2298742
Non-current liabilities due within one year 453730000 711705100
Other current liabilities 183557629
Total current liabilities 4039877973 4677071021
Non-current liabilities:
long-term borrowings 2620480000 1500750000
deferred income 171375000
Total non-current liabilities 2620480000 1672125000
Total Liabilities 6660357973 6349196021
Equity:
share capital 3070692107 3070692107
3Item Ending Balance Opening Balance
capital surplus 741824399 741824399
Less: Treasury stock 296770027
surplus reserve 1549259588 1500059542
retained earnings 3219525442 2988398053
Total Equity 8284531509 8300974101
Total Liabilities and Equity 14944889482 14650170122
Legal Representative: Head of Accounting: Head of Accounting Department:
4Consolidated Income Statement
Unit: Yuan
Item 2025 2024
I. Total Operating Revenue 13718969008 15455386401
Of which: Operating Revenue 13718969008 15455386401
II. Total Operating Costs 13633173718 14862498173
Of which: Operating cost 11714880100 12848639959
taxes and surcharges 146502109 137971275
selling expenses 294891682 289402862
general and administrative expenses 740357271 791021833
research and development expenses 519332680 611497261
financial expenses 217209876 183964983
Of which: Interest expense 247130850 240388865
Interest income 40278639 55326006
Plus: Other income 170024549 221848074
Investment income (losses indicated with a "?") -11090098 -1604000
Gain (loss) from changes in fair value (enter "-" for a loss) -9045057 -491578
Credit impairment losses (losses are indicated with a "-" sign) 52872082 24154920
Asset impairment losses (losses are reported with a "-" sign) -256359957 -581082224
Gain (Loss) on Disposal of Assets (Losses are indicated by a "-") 19981685 42232656
III. Operating Profit (Losses are indicated with a “-”) 52178494 297946076
Plus: Non-operating income 58384012 19908997
Less: Non-operating expenses 11487439 26948172
IV. Total Profit (Total Loss to be entered with a "?" sign) 99075067 290906901
Less: Income tax expense -6259072 43306358
V. Net Profit (Net Loss to be reported with a "-" sign) 105334139 247600543
(1) Classified by going concern
1. Net Profit from Going Concern (Net Losses to be Entered with a “?” Sign) 105334139 247600543
(2) By ownership
1. Net Profit Attributable to Shareholders of the Parent Company 125668291 266772318
2. Profit or loss attributable to non-controlling interests -20334152 -19171775
VI. Net other comprehensive income net of tax -8909361 -17658202
Net other comprehensive income attributable to owners of the parent net of
-8909361-17658202
tax
(a) Other comprehensive income reclassified to profit or loss -8909361 -17658202
1. Foreign currency translation adjustments -8988580 1300833
2. Other 79219 -18959035
Net amount of other comprehensive income attributable to minority interest
net of tax
VII. Total Comprehensive Income 96424778 229942341
5Item 2025 2024
Total comprehensive income attributable to owners of the parent 116758930 249114116
Total comprehensive income attributable to minority interest -20334152 -19171775
VIII. Earnings Per Share
(1) Basic earnings per share 0.04 0.09
(2) Diluted earnings per share 0.04 0.09
Legal Representative: Head of Accounting: Head of Accounting Department:
6Parent Company Income Statement
Unit: Yuan
Item 2025 2024
I. Operating Revenue 272627090 338675178
Less: Operating Cost
taxes and surcharges 2227280 3110286
selling expenses 22244989 36103577
general and administrative expenses 224450483 236019621
financial expenses 42528084 27592321
Of which: Interest expense 80193334 67179991
Interest income 39247416 44163444
Plus: Other income 1155778 1227264
Investment income (losses indicated with a "?") 458624665 777558451
Credit impairment losses (losses indicated with a "-") 51268965 96963
Gain (loss) on disposal of assets (enter loss with a "-" sign) 44956 28478
II. Operating Profit (Losses are indicated with a “-”) 492270618 814760529
Add: Non-operating income 101239 41107
Less: Non-operating expenses 371400 292800
III. Total Profit (Total Loss to be entered with a "?" sign) 492000457 814508836
Less: Income tax expense
IV. Net Profit (Net Loss to be entered with a “?” sign) 492000457 814508836
(1) Net Profit from a Going Concern (Net loss is indicated by
492000457814508836
a “?”)
(2) Net profit from discontinued operations (net loss indicated
by “?”)
V. Total Comprehensive Income 492000457 814508836
Legal Representative: Head of Accounting: Head of Accounting Department:
7Consolidated Statement of Cash Flows
Unit: Yuan
Item 2025 2024
I. Cash Flows from Operating Activities:
Cash received from sales of goods and provision of services 13859258880 16772575368
Tax refunds received 47741989 47831532
Cash received from other operating activities 194572414 271579331
Subtotal of cash inflows from operating activities 14101573283 17091986231
Cash paid for purchases of goods and services 10037324214 11950326730
Cash paid to employees and on behalf of employees 1911922057 2158941445
Taxes and fees paid 590584111 705238646
Cash paid for other operating activities 415195604 520555761
Subtotal of cash outflows from operating activities 12955025986 15335062582
Net cash flow from operating activities 1146547297 1756923649
II. Cash Flows from Investing Activities:
Cash received from recovery of investments 4480254000 572800000
Cash received from investment income 5797199 6336869
Net cash recovered from the disposal of fixed assets intangible assets and
3725369877595470
other long-term assets
Subtotal of cash inflows from investing activities 4523304897 656732339
Cash paid for the acquisition of fixed assets plant and equipment intangible
10232805632338449565
assets and other long-term assets
Cash paid for investments 4708224786 555254000
Cash paid for other items related to investing activities 73284281 46621319
Subtotal of cash outflows from investing activities 5804789630 2940324884
Net cash flow from investing activities -1281484733 -2283592545
III. Cash Flows from Financing Activities:
Cash received from borrowings 5370286999 3458878582
Cash received from other financing activities 374424862 458231000
Subtotal of cash inflows from financing activities 5744711861 3917109582
Cash paid for repayment of debt 5028438537 1917891123
Cash paid for dividends profits or interest 480764742 1050959870
Of which: dividends and profits paid by subsidiaries to minority shareholders 2678677
Cash paid for other financing activities 489057426 113846515
Subtotal of cash outflows from financing activities 5998260705 3082697508
Net cash provided by financing activities -253548844 834412074
IV. Effect of Exchange Rate Changes on Cash and Cash Equivalents 1783217 8868553
V. Net Increase in Cash and Cash Equivalents -386703063 316611731
Plus: Beginning balance of cash and cash equivalents 3367873386 3051261655
VI. Cash and cash equivalents at end of period 2981170323 3367873386
8Parent Company Cash Flow Statement
Unit: Yuan
Item 2025 2024
I. Cash Flows from Operating Activities:
Cash received from sales of goods and provision of services 945335244 1576769823
Cash received from other operating activities 26227706 45079422
Subtotal of cash inflows from operating activities 971562950 1621849245
Cash paid for purchases of goods and services 610142805 1232373179
Cash paid to employees and for employee-related expenses 213448516 259676303
Taxes and other payments 15812845 20843382
Cash paid for other items related to operating activities 72339689 173275473
Subtotal of cash outflows from operating activities 911743855 1686168337
Net cash flow from operating activities 59819095 -64319092
II. Cash Flows from Investing Activities:
Cash received from recovery of investments 4469000000 470000000
Cash received from investment income 434875633 912151446
Net cash recovered from the disposal of fixed assets intangible
5220032180
assets and other long-term assets
Subtotal of cash inflows from investing activities 4903927833 1382183626
Cash paid for the acquisition of fixed assets plant and
55683458641003
equipment intangible assets and other long-term assets
Cash paid for investments 4700500000 1230987671
Subtotal of cash outflows from investing activities 4706068345 1239628674
Net cash flow from investing activities 197859488 142554952
III. Cash Flows from Financing Activities:
Cash received from borrowings 3217000000 1366490000
Subtotal of cash inflows from financing activities 3217000000 1366490000
Cash paid to repay debt 2375245100 868784900
Cash paid for dividends profits or interest 287247220 834487779
Cash paid for other financing activities 1505542147 132438661
Subtotal of cash outflows from financing activities 4168034467 1835711340
Net cash provided by financing activities -951034467 -469221340
IV. Effect of Exchange Rate Changes on Cash and Cash
-535134-5359408
Equivalents
V. Net Increase in Cash and Cash Equivalents -693891018 -396344888
Plus: Beginning balance of cash and cash equivalents 1431539421 1827884309
VI. Cash and cash equivalents at end of period 737648403 1431539421
Legal Representative: Head of Accounting: Head of Accounting Department:
9Consolidated Statement of Changes in Equity
Unit: Yuan
2025
Equity attributable to the parent company
Item
capital Less: other non-controlli Total equityshare capital surplus Treasury comprehens
Special surplus retained
stock ive income reserves reserve earnings
Subtotal ng interests
I. Balance at the end of the
previous period 3070692107 590739414 159726269 5079628 1485514182 8224198195 13535949795 466694177 14002643972
II. Beginning balance for the
current period 3070692107 590739414 159726269 5079628 1485514182 8224198195 13535949795 466694177 14002643972
III. Changes in the current
period (decreases are indicated 296770027 -8909361 1223282 49200046 -135204777 -390460837 -57495553 -447956390
with a "?")
(1) Total Comprehensive
Income -8909361 125668291 116758930 -20334152 96424778
(2) Capital Contributions and
Reductions by Owners 296770027 -296770027 -296770027
1. Common Stock Issued to
Owners
2. Other 296770027 -296770027 -296770027
(3) Distribution of Profits 49200046 -260873068 -211673022 -37161401 -248834423
1. Transfer from the surplus
reserve 49200046 -49200046
2. Distributions to owners (or
shareholders) -211673022 -211673022 -37161401 -248834423
(4) Special Reserve 1223282 1223282 1223282
1. Allocation for the current
period 7946664 7946664 7946664
2. Used during the period 6723382 6723382 6723382
IV. Balance at the end of the
current period 3070692107 590739414 296770027 150816908 6302910 1534714228 8088993418 13145488958 409198624 13554687582
10Consolidated Statement of Changes in Equity
Unit:Yuan
2024
Equity attributable to the parent company
Item
capital other Special surplus retained non-controllin Total Equityshare capital surplus comprehensiv Subtotal g interestse income reserves reserve earnings
I. Balance at the end of the
previous period 3070692107 590739414 177384471 1411139 1404063298 8806549788 14050840217 485865952 14536706169
II. Beginning balance for the
current period 3070692107 590739414 177384471 1411139 1404063298 8806549788 14050840217 485865952 14536706169
III. Changes in the Current
Period (decreases are indicated -17658202 3668489 81450884 -582351593 -514890422 -19171775 -534062197
by a "?" sign)
(1) Total comprehensive
income -17658202 266772318 249114116 -19171775 229942341
(2) Capital Contributions and
Reductions by Owners
1. Common Stock Issued to
Owners
2. Other
(3) Profit Distribution 81450884 -849123911 -767673027 -767673027
1. Allocation to Surplus Reserve 81450884 -81450884
2. Distribution to owners (or
shareholders) -767673027 -767673027 -767673027
(4) Special Reserve 3668489 3668489 3668489
1. Allocation for the current
period 6705945 6705945 6705945
2. Usage for the current period 3037456 3037456 3037456
IV. Balance at the end of the
current period 3070692107 590739414 159726269 5079628 1485514182 8224198195 13535949795 466694177 14002643972
Legal Representative: Head of Accounting: Head of Accounting Department:
11Statement of Changes in Equity of the Parent Company
Unit: Yuan
2025
Item
share capital capital surplus Less: TreasuryStock surplus reserve retained earnings Total Equity
I. Balance at the end of the previous period 3070692107 741824399 1500059542 2988398053 8300974101
II. Beginning balance for the current period 3070692107 741824399 1500059542 2988398053 8300974101
III. Changes for the Period (decreases indicated by “?”) 296770027 49200046 231127389 -16442592
(1) Total Comprehensive Income 492000457 492000457
(2) Contributions and Drawings by Owners 296770027 -296770027
1. Common Stock Contributed by Owners
2. Other 296770027 -296770027
(3) Distribution of Profits 49200046 -260873068 -211673022
1. Allocation to the surplus reserve 49200046 -49200046
2. Distribution to owners (or shareholders) -211673022 -211673022
(4) Internal transfers within equity
(5) Special reserves
(6) Other
IV. Balance at the End of the Current Period 3070692107 741824399 296770027 1549259588 3219525442 8284531509
12Statement of Changes in Equity of the Parent Company
Unit:Yuan
2024
Item
share capital capital surplus surplus reserve retained earnings Total Equity
I. Balance at the end of the previous period 3070692107 741824399 1418608658 3023013128 8254138292
II. Beginning balance for the current period 3070692107 741824399 1418608658 3023013128 8254138292
III. Changes for the Period (Decreases are indicated with a "?"
sign) 81450884 -34615075 46835809
(1) Total Comprehensive Income 814508836 814508836
(2) Contributions to and reductions in equity
(3) Profit Distribution 81450884 -849123911 -767673027
1. Allocation to the surplus reserve 81450884 -81450884
2. Distribution to owners (or shareholders) -767673027 -767673027
(4) Internal transfers within owners' equity
(5) Special reserves
(6) Other
IV. Balance at the End of the Current Period 3070692107 741824399 1500059542 2988398053 8300974101
Legal Representative: Head of Accounting: Head of Accounting Department:
13CSG Holding Co. Ltd.
Notes to the Financial Statements
2025 (Unless otherwise stated all amounts are in RMB)
Notes to the Financial Statements
I. Company Profile
China Merchants Steam Navigation Company Ltd. Shenzhen Building Materials Industry Group
Company China North Industries Shenzhen Corp. and Guangdong International Trust and Investment
Co. Ltd. jointly invested in the establishment of CSG Holding Co. Ltd. which was established in
September 1984. The company is registered in Shenzhen Guangdong Province People‘s Republic of
China and its headquarters are located in Shenzhen Guangdong Province People‘s Republic of
China.The Group publicly issued RMB ordinary shares (“A-shares”) and foreign investment shares
(“B-shares”) in October 1991 and January 1992 respectively and was listed on the Shenzhen Stock
Exchange (“SZSE”) in February 1992.As of December 31 2025 the Group’s total share capital was
RMB 3070692107 with a par value of RMB 1 per share.The principal business operations of the Group and its subsidiaries (hereinafter collectively referred to
as the “Group”) include: the production and sale of float glass photovoltaic glass special glass
architectural glass energy-saving products and glass-based energy products; the production and sale
of polysilicon and solar modules; the production and sale of electronic glass and display devices; and
the construction and operation of photovoltaic power plants.These financial statements and the notes thereto were approved for issuance by the Group’s Board of
Directors on April 24 2026.For details on the major subsidiaries included in the scope of consolidation for the current year please
refer to the notes.II. Basis of Preparation of the Financial Statements
These financial statements have been prepared in accordance with the Chinese Accounting Standards
for Business Enterprises issued by the Ministry of Finance along with their application guidelinesinterpretations and other relevant provisions (collectively referred to as the “Chinese AccountingStandards for Business Enterprises”). In addition the Group discloses relevant financial information inaccordance with the China Securities Regulatory Commission’s “Rule No. 15 on Information Disclosurefor Companies Issuing Securities—General Provisions for Financial Reports (Revised in 2023).”
These financial statements are presented on a going concern basis.The Group’s accounting is based on the accrual basis. Except for certain financial instruments and
investment properties these financial statements are measured at historical cost. If an asset is impaired
an impairment allowance is recognized in accordance with relevant regulations.III. Significant Accounting Policies and Estimates
The Group determines the depreciation of fixed assets amortization of intangible assets criteria for
capitalizing research and development expenses and revenue recognition policies based on the
characteristics of its production and operations. For specific accounting policies please refer to Notes
3.16 3.20 3.21 and 3.26.
14CSG Holding Co. Ltd.
Notes to the Financial Statements
2025 (Unless otherwise stated all amounts are in RMB)
1、 Statement of Compliance with Chinese Accounting Standards for Business Enterprises
These financial statements comply with the requirements of Chinese Accounting Standards for
Business Enterprises and present a true and fair view of the Group’s consolidated and separate
financial position as of December 31 2025 as well as the Group’s and the Company’s consolidated and
separate results of operations and cash flows for the year ended December 31 2025.
2、 Accounting Period
The Group’s accounting period follows the calendar year i.e. from January 1 to December 31 of each
year.
3、 Operating Cycle
The Group’s operating cycle is 12 months.
4、 Functional Currency
The Group and its domestic subsidiaries use the Renminbi as their functional currency. The Group’s
overseas subsidiaries determine their functional currency based on the currency of the primary
economic environment in which they operate. The currency used by the Group in preparing these
financial statements is the Renminbi.
5、 Materiality Threshold Methodology and Basis for Selection
Item Materiality Threshold
Significant individual accounts receivable for which an Accounts receivable where the amount of an individual item
allowance for doubtful accounts is recognized represents 5% or more of the consolidated accountsreceivable balance
Significant individual accounts receivable for which an Items where the amount of a single other receivable
allowance for doubtful accounts is recognized accounts for 10% or more of the consolidated balance ofother receivables
Items whose impact on the Company’s current period profit
Significant Write-offs of Accounts Receivable/Other or loss represents 5% or more of the absolute value of the
Receivables Company’s audited net profit for the most recent fiscal year
and whose absolute amount exceeds RMB 1 million
Projected investment amount representing 5% or more of
Significant construction in progress the most recent audited equity attributable to the parent
company
Significant non-wholly-owned subsidiaries Total assets of the subsidiary account for 5% or more oftotal consolidated assets
6、 Accounting treatment for business combinations under common control and those not under common
control
(1) Business Combinations Under Common Control
For business combinations under common control the assets and liabilities of the acquiree acquired by
the acquirer in the combination are measured at the acquiree’s carrying amount in the ultimate
controlling party’s consolidated financial statements as of the combination date.The difference between
the book value of the merger consideration (or the total par value of the shares issued) and the book
value of the net assets acquired in the merger is recorded in capital surplus (share capital premium). If
15CSG Holding Co. Ltd.
Notes to the Financial Statements
2025 (Unless otherwise stated all amounts are in RMB)
capital surplus (share capital premium) is insufficient to absorb the difference the remaining amount is
recorded in retained earnings.Business Combinations Under Common Control Achieved Through Multiple Transactions
The assets and liabilities of the acquiree acquired by the acquirer in the business combination are
measured at their carrying amounts in the consolidated financial statements of the ultimate controlling
party as of the combination date; the difference between the sum of the carrying amount of the
investment held prior to the combination and the carrying amount of the new consideration paid on the
combination date and the carrying amount of the net assets acquired in the combination is recognized
in capital surplus (share capital premium). If capital surplus is insufficient to absorb the difference the
excess is recognized in retained earnings.For long-term equity investments held by the acquirer prior to
obtaining control of the acquiree any gains or losses other comprehensive income and changes in
other equity recognized between the later of the date the original equity interest was acquired and the
date the acquirer and the acquiree came under the same ultimate control and the merger date shall be
offset against retained earnings at the beginning of the comparative reporting period or against net
income for the current period respectively.
(2) Business Combinations Not Under Common Control
For business combinations not under common control the cost of the combination is the fair value of
the assets given liabilities incurred or assumed and equity securities issued to acquire control of the
acquiree as of the acquisition date. As of the acquisition date the acquiree’s assets liabilities and
contingent liabilities are recognized at fair value.Any excess of the acquisition cost over the acquirer’s share of the fair value of the acquiree’s
identifiable net assets is recognized as goodwill and subsequently measured at cost less accumulated
impairment losses; any shortfall of the acquisition cost relative to the acquirer’s share of the fair value of
the acquiree’s identifiable net assets is recognized in profit or loss after verification.Business Combinations Under Non-Common Control Achieved Through Multiple Transactions
The cost of the combination is the sum of the consideration paid at the acquisition date and the fair
value at the acquisition date of the equity interest in the acquiree held prior to the acquisition date. The
equity interest in the acquiree held prior to the acquisition date is remeasured at its fair value at the
acquisition date and the difference between the fair value and the carrying amount is recognized in
investment income for the current period;Equity interests in the acquiree held prior to the acquisition
date that relate to other comprehensive income and changes in other equity are reclassified to profit or
loss for the acquisition date except for other comprehensive income arising from changes in the net
liability or net asset of a defined benefit plan of the investee due to remeasurement and other
comprehensive income related to non-trading equity instrument investments originally designated as
measured at fair value with changes recognized in other comprehensive income.
(3) Treatment of Transaction Costs in Business Combinations
Intermediary fees such as those for audit legal services and valuation and advisory services as well
as other related general and administrative expenses incurred in connection with a business
combination are recognized in profit or loss in the period in which they are incurred. Transaction costs
16CSG Holding Co. Ltd.
Notes to the Financial Statements
2025 (Unless otherwise stated all amounts are in RMB)
associated with equity or debt securities issued as consideration for a business combination are
included in the initial recognition amount of the equity or debt securities.
7、 Criteria for Determining Control and Methods for Preparing Consolidated Financial Statements
(1) Criteria for Determining Control
The scope of consolidation for consolidated financial statements is determined on the basis of control.Control means that the Group has the power over the investee is entitled to variable returns by
participating in the investee’s activities and has the ability to use its power over the investee to affect
the amount of those returns. The Group reassesses control whenever changes in relevant facts and
circumstances affect the factors involved in the definition of control.In determining whether to include a structured entity in the scope of consolidation the Group assesses
whether it controls the structured entity by considering all relevant facts and circumstances including
evaluating the purpose and design of the structured entity identifying the nature of variable returns and
determining whether it bears some or all of the variability in returns through participation in the entity’s
activities.
(2) Methodology for Preparing Consolidated Financial Statements
The consolidated financial statements are prepared by the Group based on the financial statements of
the Group and its subsidiaries supplemented by other relevant information. In preparing the
consolidated financial statements the accounting policies and accounting periods of the Group and its
subsidiaries are aligned and significant intercompany transactions and balances are eliminated.Subsidiaries and businesses acquired during the reporting period through business combinations under
common control are treated as if they had been included in the Group’s scope of consolidation from the
date they came under the control of the common ultimate controlling party. Their operating results and
cash flows from that date are included in the consolidated statement of comprehensive income and the
consolidated statement of cash flows respectively.For subsidiaries and businesses acquired during the reporting period through business combinations
not under common control the revenue expenses and profit of such subsidiaries and businesses from
the acquisition date 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 portion of a subsidiary’s equity not owned by the Group is presented separately as non-controlling
interests under the equity section of the consolidated balance sheet; the share of the subsidiary’s netprofit or loss for the period attributable to non-controlling interests is presented as “Profit or LossAttributable to Non-Controlling Interests” under the net profit item in the consolidated income
statement.To the extent that the share of the subsidiary’s loss borne by minority shareholders exceeds
the minority shareholders’ share of the subsidiary’s opening equity the excess is still offset against
non-controlling interests.
(3) Acquisition of Minority Interests in a Subsidiary
The difference between the cost of a long-term equity investment newly acquired through the purchase
of a minority interest and the share of the subsidiary’s net assets calculated continuously from the
17CSG Holding Co. Ltd.
Notes to the Financial Statements
2025 (Unless otherwise stated all amounts are in RMB)
acquisition date or the date of consolidation in accordance with the new ownership percentage as well
as the difference between the proceeds received from the partial disposal of an equity investment in a
subsidiary without losing control and the share of the subsidiary’s net assets calculated continuously
from the acquisition date or the date of consolidation corresponding to the long-term equity investment
being disposed of shall both be recorded in the consolidated balance sheet under capital surplus(Share
Capital Premium/Capital Surplus); if the capital surplus is insufficient to offset the difference retained
earnings are adjusted.
(4) Treatment of Loss of Control over a Subsidiary
If control over a subsidiary is lost due to the disposal of a portion of the equity investment or for other
reasons the remaining equity interest is remeasured at its fair value as of the date control is lost;the
sum of the consideration received from the disposal and the fair value of the remaining equity interest
less the sum of the share of the former subsidiary’s net assets (calculated from the acquisition date
based on the original ownership percentage) and goodwill is recognized as investment income in the
period in which control is lost.Other comprehensive income related to the equity investment in the former subsidiary shall be
accounted for at the time of loss of control on the same basis as if the former subsidiary had directly
disposed of the relevant assets or liabilities; all other changes in equity under the equity method related
to the former subsidiary shall be reclassified to profit or loss in the period of loss of control.
8、 Criteria for Determining Cash and Cash Equivalents
Cash refers to cash on hand and deposits available for immediate payment. Cash equivalents refer to
investments held by the Group that are short-term highly liquid readily convertible into a known amount
of cash and subject to an insignificant risk of changes in value.
9、 Foreign Currency Transactions and Translation of Financial Statements
(1) Foreign Currency Transactions
When the Group engages in foreign currency transactions they are translated into the functional
currency at the spot exchange rate prevailing on the transaction date.At the balance sheet date foreign currency monetary items are translated using the spot exchange rate
prevailing on the balance sheet date. Exchange differences 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 are recognized in profit or loss for the current period;For non-monetary
foreign currency items measured at historical cost the spot exchange rate on the transaction date is still
used for translation; for non-monetary foreign currency items measured at fair value the spot exchange
rate on the date the fair value was determined is used for translation. The difference between the
translated amount in the functional currency and the original amount in the functional currency is
recognized in profit or loss or other comprehensive income for the period depending on the nature of
the non-monetary item.
(2) Translation of Foreign Currency Financial Statements
18CSG Holding Co. Ltd.
Notes to the Financial Statements
2025 (Unless otherwise stated all amounts are in RMB)
At the balance sheet date when translating the foreign currency financial statements of overseas
subsidiaries assets and liabilities in the balance sheet are translated using the spot exchange rate on
the balance sheet date. For equity items all items except “retained earnings” are translated using the
spot exchange rate on the transaction date.Revenue and expense items in the income statement are translated using the spot exchange rate on
the transaction date.All items in the cash flow statement are translated using the spot exchange rate on the date the cash
flow occurred. The effect of exchange rate changes on cash is treated as an adjusting item and ispresented separately in the cash flow statement under the heading “Effect of exchange rate changes oncash and cash equivalents.”Differences arising from the translation of financial statements are recognized in the “OtherComprehensive Income” line item under shareholders’ equity in the balance sheet.Upon the disposal of a foreign operation and the loss of control all foreign currency translation
differences related to that foreign operation which are presented under shareholders’ equity in the
balance sheet are transferred to profit or loss for the period of disposal either in full or in proportion to
the disposal of the foreign operation.
10、 Financial Instruments
A financial instrument is a contract that gives rise to 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.A financial asset is derecognized when one of the following conditions is met:
* The contractual rights to receive cash flows from the financial asset have terminated;
* The financial asset has been transferred and meets the derecognition criteria for a transfer of a
financial asset described below.A financial liability is derecognized in whole or in part when the present obligation under the liability is
discharged in whole or in part. If the Group (the debtor) enters into an agreement with a creditor to
replace an existing financial liability with a new financial liability and the terms of the new financial
liability differ substantially from those of the existing financial liability the existing financial liability is
derecognized and the new financial liability is recognized simultaneously.For the purchase or sale of financial assets in the ordinary course of business recognition and
derecognition are accounted for on the trade date.
(2) Classification and Measurement of Financial Assets
19CSG Holding Co. Ltd.
Notes to the Financial Statements
2025 (Unless otherwise stated all amounts are in RMB)
Upon initial recognition the Group classifies financial assets into the following three categories based
on the business model for managing the financial assets and the contractual cash flow characteristics of
the financial assets: financial assets measured at amortized cost financial assets measured at fair
value with changes recognized in other comprehensive income and financial assets measured at fair
value with changes recognized in profit or loss.Financial assets are measured at fair value upon initial recognition.For financial assets measured at fair
value with changes recognized in profit or loss related transaction costs are recognized directly in profit
or loss; for financial assets in other categories related transaction costs are included in the initial
recognition amount. For receivables arising from the sale of products or the provision of services that do
not contain or do not take into account a significant financing component the Group uses the amount of
consideration it expects to be entitled to receive as the initial recognition amount.Financial Assets Measured at Amortized Cost
The Group classifies financial assets that meet all of the following criteria and are not designated as
financial assets at fair value through profit or loss as financial assets measured at amortized cost:
* The Group’s business model for managing the financial asset is to collect the contractual cash
flows;
* The contractual terms of the financial asset provide that cash flows arising on specific dates consist
solely of 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
method. Gains or losses arising from financial assets measured at amortized cost that are not part of
any hedging relationship are recognized in profit or loss upon derecognition amortization using the
effective interest method or recognition of an impairment loss.Financial assets measured at fair value with changes recognized in other comprehensive income
The Group classifies financial assets that meet all of the following criteria and are not designated as
financial assets 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 asset is aimed at both collecting
contractual cash flows and selling the financial asset;
* The contractual terms of the financial asset provide that cash flows arising on specific dates consist
solely of payments of principal and interest based on the outstanding principal amount.After initial recognition such financial assets are subsequently measured at fair value. Interest
calculated using the effective interest method impairment losses or gains and foreign exchange gains
or losses are recognized in profit or loss; other gains or losses are recognized in other comprehensive
income. Upon derecognition the cumulative gains or losses previously recognized in other
comprehensive income are reclassified from other comprehensive income to profit or loss.Financial Assets Measured at Fair Value with Changes Recognized in Profit or Loss
20CSG Holding Co. Ltd.
Notes to the Financial Statements
2025 (Unless otherwise stated all amounts are in RMB)
Except for the financial assets measured at amortized cost and those measured at fair value with
changes recognized in other comprehensive income described above the Group classifies all other
financial assets as financial assets measured at fair value with changes recognized in profit or
loss.Upon initial recognition to eliminate or significantly reduce accounting mismatches the Group
irrevocably designates a portion of financial assets that would otherwise be measured at amortized cost
or at fair value with changes recognized in other comprehensive income as financial assets measured
at fair value with changes recognized in profit or loss.Subsequent to initial recognition such financial assets are measured at fair value and any resulting
gains or losses (including interest and dividend income) are recognized in profit or loss unless the
financial asset is part of a hedging relationship.The business model for managing financial assets refers to how the Group manages financial assets to
generate cash flows. The business model determines whether the source of cash flows from the
financial assets managed by the Group is the collection of contractual cash flows the sale of financial
assets or a combination of both. The Group determines the business model for managing financial
assets based on objective evidence and the specific business objectives for managing financial assets
as determined by key management personnel.The Group assesses 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 consist solely of
payments of principal and interest based on the outstanding principal amount. Here principal refers to
the fair value of the financial asset at initial recognition; interest includes compensation for the time
value of money credit risk associated with the outstanding principal amount for a specific period and
other fundamental lending risks costs and profits.In addition the Group assesses the contractual terms
that could result in changes to the timing or amount of the financial asset’s contractual cash flows to
determine whether they meet the requirements of the aforementioned contractual cash flow
characteristics.Financial assets are reclassified only when the Group changes its business model for managing
financial assets and all affected financial assets are reclassified on the first day of the first reporting
period following 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 with changes recognized in profit or loss related transaction costs are recognized directly in profit
or loss; for other categories of financial assets related transaction costs are included in the initial
recognition amount. For accounts receivable arising from the sale of products or the provision of
services that do not contain or take into account a significant financing component the Group uses the
amount of consideration to which it expects to be entitled as the initial recognition amount.
(3) Classification and Measurement of Financial Liabilities
The Group’s financial liabilities are classified upon initial recognition as: financial liabilities measured at
fair value with changes recognized in profit or loss and financial liabilities measured at amortized cost.For financial liabilities not classified as those measured at fair value with changes recognized in profit or
loss related transaction costs are included in their initial recognition amount.Financial liabilities measured at fair value through profit or loss
21CSG Holding Co. Ltd.
Notes to the Financial Statements
2025 (Unless otherwise stated all amounts are in RMB)
Financial liabilities measured at fair value through profit or loss include trading financial liabilities and
financial liabilities designated upon initial recognition as measured at fair value through profit or loss.For such financial liabilities subsequent measurement is based on fair value and gains or losses
arising from changes in fair value as well as dividends and interest expenses related to these financial
liabilities are recognized in profit or loss.Financial liabilities measured at amortized cost
Other financial liabilities are measured at amortized cost using the effective interest method and gains
or losses arising from derecognition or amortization are recognized in profit or loss.Distinction Between Financial Liabilities and Equity Instruments
A financial liability is a liability that meets one of the following conditions:
* A contractual obligation to deliver cash or other financial assets to another party.* A contractual obligation to exchange financial assets or financial liabilities with another party under
potential adverse conditions.* A non-derivative contract that is required or permitted to be settled in the entity’s own equity
instruments and under which the entity is to deliver a variable number of its own equity instruments.* A derivative contract that is to be settled or may be settled in the entity’s own equity instruments
except for derivative contracts that exchange a fixed number of the entity’s own equity instruments for a
fixed amount of cash or other financial assets.An equity instrument is a contract that evidences a residual interest in the assets of an entity after
deducting all of its liabilities.If the Group cannot unconditionally avoid fulfilling a contractual obligation by delivering cash or other
financial assets that contractual obligation meets the definition of a financial liability.If a financial instrument is required or permitted to be settled in the Group’s own equity instruments it is
necessary to consider whether the Group’s own equity instruments used to settle the instrument serve
as a substitute for cash or other financial assets or whether they are intended to give the holder of the
instrument a residual interest in the assets of the issuer after deducting all liabilities. If the former the
instrument is a financial liability of the Group; if the latter the instrument is an equity instrument of the
Group.
(4) Fair Value of Financial Instruments
The methods for determining the fair value of financial assets and financial liabilities are described in
Note 3.11.
(5) Impairment of Financial Assets
The Group applies impairment accounting based on expected credit losses and recognizes an
allowance for credit impairment losses for the following items:
22CSG Holding Co. Ltd.
Notes to the Financial Statements
2025 (Unless otherwise stated all amounts are in RMB)
* Financial assets measured at amortized cost;
* Receivables and debt investments measured at fair value with changes recognized in other
comprehensive income;
* Contract assets as defined in Chinese Accounting Standards for Business Enterprises No.
14—Revenue;
* Lease receivables;
* Financial guarantee contracts (excluding those measured at fair value with changes recognized in
profit or loss or those arising from the transfer of financial assets that do not meet the criteria for
derecognition or from continued involvement in the transferred financial assets).Measurement of Expected Credit Losses
Expected credit loss refers to the weighted average of credit losses on financial instruments weighted
by the risk of default. Credit loss refers to the difference between all contractual cash flows due under
the contract discounted at the original effective interest rate and all expected cash flows to be received
i.e. the present value of the total cash shortfall.The Group recognizes expected credit losses by calculating the probability-weighted present value of
the difference between the contractual cash flows due and the expected cash flows to be received
weighted by the risk of default based on reasonable and supportable information regarding past events
current conditions and forecasts of future economic conditions.The Group measures expected credit losses separately for financial instruments in different stages. If
the credit risk of a financial instrument has not increased significantly since initial recognition it is
classified in Stage 1 and the Group measures the loss allowance based on the expected credit loss
over the next 12 months; if the credit risk of a financial instrument has increased significantly since initial
recognition but no credit impairment losses have yet occurred it is classified in Stage 2 and the Group
measures the loss allowance based on the expected credit loss over the entire life of the
instrument;Financial instruments for which credit impairment losses have occurred since initial
recognition are classified in Stage 3 and the Group measures the loss allowance based on the
expected credit losses over the instrument’s entire remaining life.For financial instruments with low credit risk as of the balance sheet date the Group assumes that
credit risk has not increased significantly since initial recognition and measures the credit loss allowance
based on expected credit losses over the next 12 months.Expected credit losses over the entire life refer to the expected credit losses resulting from all possible
default events that may occur over the entire expected life of the financial instrument. Expected credit
losses over the next 12 months refer to the expected credit losses resulting from default events that
may occur within 12 months after the balance sheet date (or within the expected life of the financial
instrument if it is less than 12 months) and constitute a portion of the expected credit losses over the
entire life.When measuring expected credit losses the Group considers the longest contract term during which
the entity is exposed to credit risk (including renewal options).
23CSG Holding Co. Ltd.
Notes to the Financial Statements
2025 (Unless otherwise stated all amounts are in RMB)
For financial instruments in Stage 1 and Stage 2 as well as those with lower credit risk the Group
calculates interest income based on their carrying amounts before impairment and the effective interest
rate. For financial instruments in Stage 3 the Group calculates interest income based on their amortized
cost (carrying amount less accumulated impairment losses) and the effective interest rate.For receivables such as notes receivable accounts receivable receivables financing other receivables
and contract assets if a customer’s credit risk profile differs significantly from that of other customers in
the portfolio or if there is a significant change in the customer’s credit risk profile the Group recognizes
an individual allowance for doubtful accounts for that receivable.Except for receivables for which an
individual allowance for doubtful accounts has been recognized the Group classifies receivables into
groups based on credit risk characteristics and calculates the allowance for doubtful accounts on a
group basis.Notes receivable accounts receivable and contract assets
For notes receivable and accounts receivable regardless of whether a significant financing component
exists the Group always measures its loss allowance based on an amount equivalent to the expected
credit losses over the entire remaining life of the asset.When information regarding expected credit losses for an individual financial asset cannot be assessed
at a reasonable cost the Group classifies notes receivable and accounts receivable into groups based
on credit risk characteristics and calculates expected credit losses on a group basis. The basis for
determining the groups is as follows:
A. Notes Receivable
* Notes Receivable Portfolio 1: Banker’s Acceptances
* Notes Receivable Portfolio 2: Commercially Accepted Bills
B. Accounts Receivable
* Accounts Receivable Pool 1: Non-related-party customers
* Accounts Receivable Group 2: Related-Party Customers
For notes receivable and contract assets classified into pools the Group calculates expected credit
losses based on historical credit loss experience combined with current conditions and forecasts of
future economic conditions using default risk exposure and lifetime expected credit loss rates.For accounts receivable classified into pools the Group calculates expected credit losses by preparing
a cross-reference table of accounts receivable aging/days past due against the lifetime expected credit
loss rate based on historical credit loss experience current conditions and forecasts of future
economic conditions. The aging of accounts receivable is calculated from the date of recognition and
days past due are calculated from the date the credit period expires.Other Receivables
The Group classifies other receivables into several pools based on credit risk characteristics and
calculates expected credit losses on a pool basis. The basis for determining the pools is as follows:
24CSG Holding Co. Ltd.
Notes to the Financial Statements
2025 (Unless otherwise stated all amounts are in RMB)
* Other Receivables Portfolio 1: Receivables from Non-Related Parties
* Other Receivables Portfolio 2: Receivables from Related Parties
For other receivables classified into pools the Group calculates expected credit losses using default risk
exposure and expected credit loss rates over the next 12 months or the entire life of the receivables. For
other receivables classified into pools based on aging the aging period is calculated from the date of
recognition.Debt Investments and Other Debt Investments
For debt investments and other debt investments the Group calculates expected credit losses based on
the nature of the investment the type of counterparty and the type of exposure using default risk
exposure and expected credit loss rates over the next 12 months or the entire life of the investment.Assessment of a Significant Increase in Credit Risk
The Group assesses whether credit risk has increased significantly since initial recognition by
comparing the risk of default of a financial instrument at the balance sheet date with the risk of default at
the date of initial recognition to determine the relative change in the risk of default over the expected life
of the financial instrument.In determining whether credit risk has increased significantly since initial recognition the Group
considers reasonable and supportable information including forward-looking information that is
available without undue additional cost or effort. The information considered by the Group includes:
* instances where the debtor has failed to pay principal and interest by the contractual due date;
* Significant deterioration in the external or internal credit ratings (if any) of the financial instrument
whether actual or expected;
* a significant deterioration in the debtor’s operating results whether actual or expected;
* Existing or anticipated changes in the technological market economic or legal environment that
would have a material adverse effect on the debtor’s ability to repay the Group.Depending on the nature of the financial instrument the Group assesses whether credit risk has
increased significantly on an individual financial instrument basis or on a portfolio basis. When
assessing on a portfolio basis the Group may classify financial instruments based on common credit
risk characteristics such as delinquency information and credit risk ratings.If a financial instrument is past due by more than 30 days the Group determines that the credit risk of
the financial instrument has increased significantly.The Group considers a financial asset to be in default when:
* The borrower is unlikely to pay the full amount owed to the Group and this assessment does not
consider recourse actions taken by the Group such as the realization of collateral (if held);
* The financial asset is past due by more than 90 days.
25CSG Holding Co. Ltd.
Notes to the Financial Statements
2025 (Unless otherwise stated all amounts are in RMB)
Financial assets that are credit-impaired
At each balance sheet date the Group assesses whether financial assets measured at amortized cost
and debt investments measured at fair value through other comprehensive income have become
credit-impaired. A financial asset becomes credit-impaired when one or more events occur that have an
adverse effect on the expected future cash flows of the financial asset. Evidence that a financial asset is
credit-impaired includes the following observable information:
* Significant financial difficulties experienced by the issuer or debtor;
* A breach of contract by the debtor such as a default or delinquency in interest or principal
payments;
* The Group grants the debtor concessions that it would not otherwise grant based on economic or
contractual considerations related to the debtor’s financial difficulties;
* It is highly probable that the debtor will enter bankruptcy or undergo other financial restructuring;
* the disappearance of an active market for the financial asset due to the financial difficulties of the
issuer or debtor.Presentation of the Allowance for Expected Credit Losses
To reflect changes in the credit risk of financial instruments since initial recognition the Group
remeasures expected credit losses at each balance sheet date. Any increase or reversal in the loss
allowance resulting therefrom shall be recognized as credit impairment losses or gains in profit or loss
for the current period.For financial assets measured at amortized cost the loss allowance reduces the
carrying amount of the financial asset as presented in the balance sheet; for debt investments
measured at fair value with changes recognized in other comprehensive income the Group recognizes
the loss allowance in other comprehensive income and does not reduce the carrying amount of the
financial asset.Write-off
If the Group no longer reasonably expects to recover all or part of the contractual cash flows of a
financial asset the carrying amount of that financial asset is written down directly. Such a write-down
constitutes the derecognition of the relevant financial asset. This situation typically arises when the
Group determines that the debtor has no assets or sources of income capable of generating sufficient
cash flows to repay the amount written down. However in accordance with the Group’s procedures for
collecting past-due amounts a written-down financial asset may still be subject to enforcement actions.If a written-down financial asset is subsequently recovered the reversal of the impairment loss is
recognized in profit or loss for the period in which the recovery occurs.
(6) Transfer of Financial Assets
A transfer of a financial asset is the assignment or delivery of a financial asset to a party other than the
issuer of the financial asset (the transferee).
26CSG Holding Co. Ltd.
Notes to the Financial Statements
2025 (Unless otherwise stated all amounts are in RMB)
If the Group has transferred substantially all the risks and rewards of ownership of the financial asset to
the transferee the financial asset is derecognized; if the Group has retained substantially all the risks
and rewards of ownership of the financial asset the financial asset is not derecognized.If the Group has neither transferred nor retained substantially all the risks and rewards of ownership of
the financial asset the following treatments apply: if control over the financial asset has been
relinquished the financial asset is derecognized and the resulting assets and liabilities are recognized; if
control over the financial asset has not been relinquished the financial asset is recognized to the extent
of the Group’s continuing involvement in the transferred financial asset and the related liability is
recognized accordingly.
(7) Offsetting of Financial Assets and Financial Liabilities
When the Group has a legal right to offset recognized financial assets and financial liabilities and is
currently able to exercise that right and the Group intends to settle on a net basis or to realize the
financial asset and settle the financial liability simultaneously the financial assets and financial liabilities
are presented in the balance sheet at their net amount after offsetting. Otherwise financial assets and
financial liabilities are presented separately in the balance sheet and are not offset against each other.
11、 Fair Value Measurement
Fair value is the price that a market participant would receive to sell an asset or pay to transfer a liability
in an orderly transaction at the measurement date.The Group measures relevant assets or liabilities at fair value assuming that the orderly transaction to
sell the asset or transfer the liability takes place in the principal market for the relevant asset or liability;
if no principal market exists the Group assumes that the transaction takes place in the most
advantageous market for the relevant asset or liability. The principal market (or most advantageous
market) is the trading market to which the Group has access on the measurement date.The Group uses
the assumptions that a market participant would use when pricing the asset or liability to maximize its
economic benefit.For financial assets or financial liabilities with active markets the Group determines their fair value using
quoted prices in active markets. For financial instruments without active markets the Group determines
their fair value using valuation techniques.When measuring non-financial assets at fair value the Group considers the ability of market participants
to generate economic benefits by using the asset for its best use or by selling the asset to other market
participants who can use it for its best use.The Group uses valuation techniques that are appropriate in the current circumstances and supported
by sufficient available data and other information giving priority to relevant observable inputs;
unobservable inputs are used only when observable inputs are unavailable or it is impractical to obtain
them.Assets and liabilities measured or disclosed at fair value in the financial statements are classified into
fair value hierarchies based on the lowest level of inputs that is significant to the fair value measurement
as a whole: Level 1 inputs are unadjusted quotes for identical assets or liabilities available in active
markets on the measurement date; Level 2 inputs are directly or indirectly observable inputs for the
27CSG Holding Co. Ltd.
Notes to the Financial Statements
2025 (Unless otherwise stated all amounts are in RMB)
relevant assets or liabilities other than Level 1 inputs;Level 3 inputs are unobservable inputs for the
relevant asset or liability.At each balance sheet date the Group reassesses assets and liabilities recognized in the financial
statements that are measured at fair value on a continuing basis to determine whether there have been
any transfers between fair value measurement levels.
12、 inventories
(1) Classification of Inventories
The Group’s inventories are classified into raw materials work in progress finished goods and
consumables.
(2) Valuation method for issued inventories
The Group’s inventories are measured at actual cost upon acquisition. Raw materials finished goods
and other inventories are valued using the weighted average method upon issuance.
(3) Basis for Determining and Method of Accrual of the Provision for Inventory Write-Down
At the balance sheet date inventories are measured at the lower of cost and net realizable value. When
the net realizable value is lower than cost a provision for inventory write-down is recognized.Net realizable value is the estimated selling price of the inventories less the estimated costs to
completion estimated selling expenses and related taxes. In determining the net realizable value of
inventories the Group relies on objective evidence and considers the purpose for which the inventories
are held as well as the effects of events occurring after the balance sheet date.The Group generally recognizes provisions for inventory write-down on an item-by-item basis. For
inventories consisting of a large number of items with low unit prices provisions for inventory
write-down are recognized by inventory category.At the balance sheet date if the factors that previously caused the inventories to be written down no
longer exist the provision for inventory write-down is reversed up to the amount previously recognized.
(4) Inventories Counting System
The Group adopts a perpetual inventory system for inventories.
13、 assets held for sale
The Company classifies a non-current asset or disposal group as assets held for sale if it intends to
recover its carrying amount principally through a sale (including a non-monetary asset exchange with
commercial substance; the same applies hereinafter) rather than through continuing use. The specific
criteria are that all of the following conditions are met: A non-current asset or disposal group is available
for immediate sale in its present condition based on the practice of selling such assets or disposal
groups in similar transactions; The Company has made a resolution regarding the sale plan and has
obtained a firm purchase commitment;The sale is expected to be completed within one year. A disposal
group refers to a group of assets to be disposed of together as a whole through sale or other means in a
28CSG Holding Co. Ltd.
Notes to the Financial Statements
2025 (Unless otherwise stated all amounts are in RMB)
single transaction along with liabilities directly associated with those assets that are transferred in that
transaction. If the asset group or combination of asset groups to which the disposal group belongs has
allocated goodwill acquired in a business combination in accordance with Chinese Accounting
Standards for Business Enterprises No. 8—Impairment of Assets the disposal group shall include the
goodwill allocated to it.When the Company initially measures or remeasures non-current assets classified as assets held for
sale or disposal groups at the balance sheet date and their carrying amount exceeds the net amount of
fair value less costs to sell the carrying amount shall be written down to the net amount of fair value
less costs to sell. The amount of the write-down shall be recognized as asset impairment losses
included in current profit or loss and an impairment allowance for assets held for sale shall be provided
simultaneously.For a disposal group the recognized asset impairment losses are first applied against
the carrying amount of goodwill within the disposal group and then allocated proportionally to reduce
the carrying amounts of the non-current assets within the disposal group that are subject to the
measurement requirements of Chinese Accounting Standards for Business Enterprises No. 42—Assets
Held for Sale Disposal Groups and Discontinued Operations (hereinafter referred to as the
“Held-for-Sale Standard”).If the net fair value of a disposal group held for sale net of selling expenses
increases at a subsequent balance sheet dateany previously written-down amounts shall be reversed
and reclassified within the asset impairment losses recognized for non-current assets that were
measured in accordance with the Holding for Sale Standard after being classified as assets held for sale.The amount of the reversal shall be recognized in profit or loss for the current period and the carrying
amounts of such non-current assets (excluding goodwill) within the disposal group shall be increased
proportionately based on their respective carrying amounts;The carrying amount of goodwill that has
been written down as well as asset impairment losses on non-current assets measured in accordance
with the held-for-sale standard that were recognized prior to classification as assets held for sale shall
not be reversed.Non-current assets held for sale or non-current assets in a disposal group are not subject to
depreciation or amortization; interest and other expenses on liabilities in a disposal group held for sale
continue to be recognized.When a non-current asset or disposal group no longer meets the criteria for classification as held for
sale the Company ceases to classify it as held for sale or removes the non-current asset from the
disposal group held for sale and measures it at the lower of: (1) the carrying amount prior to
classification as held for sale adjusted for depreciation amortization or impairment that would have
been recognized had it not been classified as held for sale;(2) the recoverable amount.
14、 long-term equity investment
Long-term equity investments include equity investments in subsidiaries joint ventures and associates.An investee is classified as an associate of the Group if the Group is able to exercise significant
influence over the investee.
(1) Determination of Initial Investment Cost
Long-term equity investments arising from business combinations: For long-term equity investments
acquired in a business combination under common control the investment cost is the share of the book
value of the acquiree’s equity in the ultimate controlling party’s consolidated financial statements as of
29CSG Holding Co. Ltd.
Notes to the Financial Statements
2025 (Unless otherwise stated all amounts are in RMB)
the combination date; for long-term equity investments acquired in a business combination not under
common control the investment cost is the cost of the combination.For long-term equity investments acquired by other means: Long-term equity investments acquired for
cash are recognized at the purchase price actually paid as the initial investment cost; long-term equity
investments acquired through the issuance of equity securities are recognized at the fair value of the
equity securities issued as the initial investment cost.
(2) Subsequent Measurement and Profit or Loss Recognition
Investments in subsidiaries are accounted for using the cost method unless the investment meets the
criteria for 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 cash dividends or profits
declared by the investee are recognized as investment income and included in current period profit or
loss except for declared but undistributed cash dividends or profits included in the actual purchase
price or consideration paid at the time of acquisition.For long-term equity investments accounted for using the equity method if the initial investment cost
exceeds the investor’s share of the fair value of the investee’s identifiable net assets at the time of
investment the investment cost is not adjusted; if the initial investment cost is less than the investor’s
share of the fair value of the investee’s identifiable net assets at the time of investment the carrying
amount of the long-term equity investment is adjusted and the difference is recognized in profit or loss
for the period of the investment.When accounting under the equity method investment income and other comprehensive income are
recognized based on the investor’s share of the investee’s net profit or loss and other comprehensive
income respectively while simultaneously adjusting the carrying amount of the long-term equity
investment; the portion attributable to the investor is calculated based on the profits or cash dividends
declared by the investee and the carrying amount of the long-term equity investment is reduced
accordingly;For changes in the investee’s equity other than net profit or loss other comprehensive
income and profit distributions the carrying amount of the long-term equity investment is adjusted and
the amount is recognized in capital surplus (other capital surplus). When recognizing the share of the
investee’s net profit or loss the amount is determined based on the fair value of the investee’s
identifiable assets at the time of acquisition and is recognized after adjusting the investee’s net profit in
accordance with the Group’s accounting policies and the accounting period.Where due to additional investments or other reasons the Group is able to exert significant influence
over the investee or exercise joint control but does not constitute control the initial investment cost for
the transition to the equity method is determined as the sum of the fair value of the original equity
interest and the cost of the additional investment.If the original equity interest was classified as a
non-trading equity instrument investment measured at fair value with changes recognized in other
comprehensive income the cumulative fair value changes previously recognized in other
comprehensive income are transferred to retained earnings upon the change to the equity method.If joint control or significant influence over the investee is lost due to the disposal of a portion of the
equity investment or other reasons the remaining equity interest after the disposal shall be accounted
for in accordance with Chinese Accounting Standards for Business Enterprises No. 22—Recognition
30CSG Holding Co. Ltd.
Notes to the Financial Statements
2025 (Unless otherwise stated all amounts are in RMB)
and Measurement of Financial Instruments as of the date joint control or significant influence is lost and
the difference between fair value and carrying amount shall be recognized in profit or loss for the current
period.Other comprehensive income previously recognized for the equity investment under the equity
method shall be accounted for on the same basis as the direct disposal of assets or liabilities by the
investee when the equity method is discontinued; all other changes in equity related to the original
equity investment shall be transferred to profit or loss for the current period.If control over the investee is lost due to the disposal of a portion of the equity investment or other
reasons and the remaining equity interest after the disposal is capable of exercising joint control or
significant influence over the investee the investment shall be accounted for using the equity method
and the remaining equity interest shall be adjusted as if it had been accounted for using the equity
method from the date of acquisition;If the remaining equity interest after the disposal cannot exercise
joint control over or exert significant influence on the investee accounting treatment shall be conducted
in accordance with the relevant provisions of Chinese Accounting Standards for Business Enterprises
No. 22—Recognition and Measurement of Financial Instruments and the difference between its fair
value and carrying amount as of the date of loss of control shall be recognized in profit or loss for the
current period.Where the Group’s ownership interest decreases due to a capital increase by other investors resulting
in the loss of control but retaining the ability to exercise joint control or exert significant influence over
the investee the Group shall recognize its share of the increase in the investee’s net assets arising from
the capital increase in proportion to its new ownership interest; the difference between this amount and
the original carrying amount of the long-term equity investment corresponding to the decreased
ownership interest shall be recognized in profit or loss for the current period;Subsequently adjustments
are made as if the investment had been accounted for using the equity method from the date of
acquisition based on the new ownership percentage.Unrealized gains or losses arising from internal transactions between the Group and its associates or
joint ventures are recognized as investment gains or losses on an offsetting basis calculated in
proportion to the Group’s ownership interest. However unrealized losses arising from internal
transactions between the Group and an investee that constitute asset impairment losses shall not be
offset.
(3) Basis for determining joint control or significant influence over an investee
Joint control refers to the shared control over an arrangement pursuant to relevant agreements and
decisions regarding the arrangement’s activities must be made with the unanimous consent of the
parties sharing control. In determining whether joint control exists one must first determine whether all
parties or a combination of parties collectively control the arrangement and second whether decisions
regarding the arrangement’s activities must be made with the unanimous consent of the parties
collectively controlling the arrangement.If all participants or a group of participants must act in concert to
decide on the activities of an arrangement then all participants or that group of participants are deemed
to collectively control the arrangement; if there are two or more groups of participants capable of
collectively controlling an arrangement this does not constitute joint control. Protective rights are not
considered when determining whether joint control exists.Significant influence refers to the investor’s power to participate in the decision-making regarding the
investee’s financial and operating policies but without the ability to control or jointly control the
31CSG Holding Co. Ltd.
Notes to the Financial Statements
2025 (Unless otherwise stated all amounts are in RMB)
formulation of those policies with other parties.In determining whether significant influence can be
exercised over an investee consideration is given to the voting shares held directly or indirectly by the
investor in the investee as well as the impact of current exercisable contingent voting rights held by the
investor and other parties assuming such rights are converted into equity interests in the investee. This
includes the impact of currently convertible warrants stock options and convertible bonds issued by the
investee.When the Group directly or indirectly through subsidiaries holds 20% (inclusive) or more but less than
50% of the investee’s voting shares it is generally considered to have significant influence over the
investee unless there is clear evidence indicating that under such circumstances the Group cannot
participate in the investee’s production and operational decision-making and thus does not exert
significant influence;When the Group holds 20% (exclusive) or less of the investee’s voting shares it is
generally not considered to have significant influence over the investee unless there is clear evidence
indicating that under such circumstances the Group is able to participate in the investee’s production
and operational decisions and thus exerts significant influence.
(4) Impairment Testing Methods and Provision for Impairment
For investments in subsidiaries associates and joint ventures the method for recognizing asset
impairment is described in Note 3.22.
15、 investment properties
Investment properties refer to real estate held to earn rental income or for capital appreciation or for
both purposes. The Group’s investment properties include leased land use rights land use rights held
for appreciation and subsequent sale and leased buildings.There is an active real estate market in the locations where the Group’s investment properties are
situated and the Group is able to obtain market prices and other relevant information for comparable or
similar properties from the real estate market thereby enabling a reasonable estimation of the fair value
of the investment properties. Consequently the Group uses the fair value model for the subsequent
measurement of investment properties and changes in fair value are recognized in profit or loss for the
current period.When determining the fair value of investment properties the Group refers to the current market prices
of comparable or similar properties in an active market; if current market prices for comparable or
similar properties are not available the Group refers to the most recent transaction prices of
comparable or similar properties in an active market and considers factors such as transaction
circumstances transaction dates and location to make a reasonable estimate of the fair value of the
investment properties; or determines its fair value based on the present value of expected future rental
income and related cash flows.In rare cases if there is evidence that the fair value of an investment property cannot be reliably
determined on a continuous basis at the time the Group initially acquires a non-under-construction
investment property (or when an existing property first becomes an investment property following the
completion of construction or development activities or a change in use) the investment property is
measured using the cost model until disposal and no residual value is assumed.
32CSG Holding Co. Ltd.
Notes to the Financial Statements
2025 (Unless otherwise stated all amounts are in RMB)
The gain on the disposal of investment properties through sale transfer retirement or destruction net
of their carrying amounts and related taxes is recognized in profit or loss for the period.
16、 fixed assets
(1) Criteria for Recognition of Fixed Assets
The Group’s fixed assets refer to tangible assets held for the production of goods the provision of
services leasing or management and operation with a useful life exceeding one accounting period.Fixed assets are recognized only when it is probable that the economic benefits associated with the
asset will flow to the enterprise and the cost of the asset can be measured reliably.The Group’s fixed assets are initially measured at actual cost at the time of acquisition.Subsequent expenditures related to fixed assets are included in the cost of the fixed assets when it is
probable that the associated economic benefits will flow to the Group and the cost can be measured
reliably; routine repair costs for fixed assets that do not meet the criteria for capitalizing subsequent
expenditures are recognized in profit or loss for the current period or included in the cost of the relevant
asset when incurred based on the beneficiary. For the replaced portion its carrying amount is
derecognized.
(2) Depreciation Methods for Various Fixed Assets
The Group uses the straight-line method to calculate depreciation. Depreciation begins when fixed
assets are ready for their intended use and ceases upon derecognition or when they are classified as
non-current assets held for sale. Excluding impairment provisions the Group determines the annual
depreciation rates for various categories of fixed assets based on asset class estimated useful life and
estimated residual value as follows:
Category Useful Life (Years) Residual Value Rate (%) Annual Depreciation Rate(%)
Buildings and Structures 20–35 5 4.75–2.71
Machinery and equipment 8–20 5 11.88–4.75
Transportation and Other 5–8 - 20–12.50
For fixed assets for which impairment reserves have been recognized the depreciation rate shall be
determined by deducting the cumulative amount of impairment reserves already recognized.
(3) For the impairment testing methods and the method for recognizing impairment reserves for fixed assets
please refer to Note 3 22.
(4) At the end of each fiscal year the Group reviews the useful lives estimated net salvage values and
depreciation methods of its fixed assets.If there is a difference between the estimated useful life and the original estimate the useful life of the
fixed assets is adjusted; if there is a difference between the estimated net salvage value and the original
estimate the estimated net salvage value is adjusted.
33CSG Holding Co. Ltd.
Notes to the Financial Statements
2025 (Unless otherwise stated all amounts are in RMB)
(5) Disposal of Fixed Assets
When a fixed asset is disposed of or when it is no longer expected to generate economic benefits
through use or disposal the Group derecognizes the fixed asset. The proceeds from the sale transfer
scrapping or destruction of a fixed asset net of its carrying amount and related taxes are recognized in
profit or loss for the current period.
17、 Construction in progress
The Group’s cost of construction in progress is determined based on actual project expenditures
including all necessary project expenditures incurred during the construction period borrowing costs to
be capitalized prior to the asset reaching its intended usable state and other related expenses.Construction in progress is transferred to fixed assets when it reaches its intended usable state. The
criteria for determining the intended usable state shall meet one of the following conditions: The
physical construction (including installation) of the fixed asset has been fully completed or is
substantially complete; trial production or trial operation has been conducted and the results indicate
that the asset can operate normally or produce stably; or the results of trial operation indicate that it can
operate normally.Expenditures on the construction of the fixed assets are minimal or virtually
nonexistent; the constructed fixed assets have met design or contractual requirements or are
substantially in line with such requirements.For the method of calculating impairment losses on construction in progress see Note 3.22.
18、 Construction Materials
The Group’s construction materials refer to various materials prepared for construction in progress
including construction materials equipment not yet installed and tools and equipment prepared for
production.Purchased construction materials are measured at cost; materials issued for use are transferred to
construction in progress and any remaining construction materials after project completion are
reclassified as inventories.For the method of calculating impairment losses on construction materials see Note 3.22.In the balance sheet the ending balance of construction materials is presented under “Construction inProgress.”
19、 Borrowing Costs
(1) Recognition Principles for Capitalization of Borrowing Costs
Borrowing costs incurred by the Group that are directly attributable to the construction or production of
assets that meet the criteria for capitalization are capitalized and included in the cost of the relevant
assets; other borrowing costs are recognized as expenses at the time of occurrence based on their
amount and included in current period profit or loss. Borrowing costs are capitalized when they meet all
of the following conditions:
34CSG Holding Co. Ltd.
Notes to the Financial Statements
2025 (Unless otherwise stated all amounts are in RMB)
* Asset expenditures have been incurred; such expenditures include payments made in the form of
cash transfers of non-cash assets or the assumption of interest-bearing debt for the acquisition
construction or production of assets that meet the criteria for capitalization;
* Borrowing costs have been incurred;
* The construction or production activities necessary to bring the asset to its intended usable or
saleable condition have commenced.
(2) Period of Capitalization of Borrowing Costs
The Group ceases to capitalize borrowing costs when the construction or production of an asset that
meets the criteria for capitalization reaches its intended state of readiness for use or sale. Borrowing
costs incurred after the asset that meets the criteria for capitalization has reached its intended state of
readiness for use or sale are recognized as an expense in the period in which they are incurred and
included in current profit or loss.If there is an abnormal interruption in the construction or production of an asset that meets the
capitalization criteria and the interruption lasts for more than three consecutive months the
capitalization of borrowing costs is suspended; borrowing costs incurred during periods of normal
interruption continue to be capitalized.
(3) Calculation Method for the Capitalization Rate and Amount of Borrowing Costs
For designated borrowings the amount capitalized is the actual interest expense incurred during the
current period less any interest income earned on undrawn funds deposited in a bank or investment
income from temporary investments. For general borrowings the capitalized amount is determined by
multiplying the weighted average of asset expenditures exceeding those of designated borrowings by
the capitalization rate applicable to the general borrowings. The capitalization rate is calculated based
on the weighted average interest rate of the general borrowings.During the capitalization period all exchange differences on foreign currency-denominated
special-purpose loans are fully capitalized; exchange differences on foreign currency-denominated
general-purpose loans are recognized in current period profit or loss.
20、 Intangible assets
The Group’s intangible assets include land use rights patents and proprietary technology mineral
mining rights and others.Intangible assets are initially measured at cost and their useful lives are analyzed and determined at
the time of acquisition.For intangible assets with a finite useful life amortization is calculated over the
estimated useful life using a method that reflects the expected pattern of economic benefits associated
with the asset starting from the date the asset is available for use; if the expected pattern of economic
benefits cannot be reliably determined the straight-line method is used; intangible assets with an
indefinite useful life are not amortized.The amortization methods for intangible assets with finite useful lives are as follows:
35CSG Holding Co. Ltd.
Notes to the Financial Statements
2025 (Unless otherwise stated all amounts are in RMB)
Useful Life Basis for Determining Useful Life AmortizationMethod Remarks
Land use rights 30–70 years Warrant Straight-lineamortization
Patent Rights and
Proprietary Technology 5–20 years Estimated useful life
Amortized on a
straight-line basis
Mining rights 16–20 years Warrants expected income period Amortized overthe useful life
Other 2–10 years Estimated useful life Straight-lineamortization
At the end of each fiscal year the Group reviews the useful lives and amortization methods of intangible
assets with finite useful lives. If there are differences from previous estimates the original estimates are
adjusted and treated as changes in accounting estimates.If at the balance sheet date it is estimated that an intangible asset will no longer generate future
economic benefits for the enterprise the entire carrying amount of that intangible asset is transferred to
current profit or loss.For the impairment testing method for intangible assets see Note 3.22.
21、 Research and Development Expenditures
The Group’s research and development (R&D) expenses consist of expenditures directly related to the
Company’s R&D activities including employee compensation for R&D personnel direct input costs
depreciation expenses and deferred expenses design costs equipment commissioning costs
amortization of intangible assets external R&D outsourcing costs and other expenses. Among these
the salaries of R&D personnel are allocated to R&D expenses based on project man-hours.The costs of
equipment production lines and premises shared by R&D activities and other production and business
operations are allocated to R&D expenses based on the proportion of working hours and floor space.The Group classifies expenditures on internal research and development projects into research-phase
expenditures and development-phase expenditures.Expenditures incurred during the research phase are recognized in current period profit or loss as
incurred.Expenditures in the development stage may be capitalized only if all of the following conditions are met:
it is technically feasible to complete the intangible assets so that they are available for use or sale; there
is an intention to complete the intangible assets and use or sell them;The manner in which the
intangible assets will generate economic benefits includes demonstrating that there is a market for
products produced using the intangible assets or for the intangible assets themselves; if the intangible
assets are to be used internally their usefulness must be demonstrated; there are sufficient technical
financial and other resources to complete the development of the intangible assets and the Group has
the capability to use or sell the intangible assets; and expenditures attributable to the development
phase of the intangible assets can be measured reliably. Development expenditures that do not meet
the above conditions are recognized in profit or loss for the current period.The Group’s research and development projects enter the development stage after meeting the above
conditions and undergoing technical and economic feasibility studies resulting in project approval.
36CSG Holding Co. Ltd.
Notes to the Financial Statements
2025 (Unless otherwise stated all amounts are in RMB)
Capitalized development-stage expenditures are presented as development expenditures on the
balance sheet and are reclassified as intangible assets on the date the project is ready for its intended
use.Capitalization criteria for specific R&D projects:
Expenditures incurred during the research phase are recognized in profit or loss in the period in which
they are incurred. Expenditures incurred during the design and testing phases prior to mass production
which relate to the final application of production processes are classified as development expenditures
and are capitalized if they meet the following conditions:
· The development of the production process has been thoroughly evaluated by the technical team;
·Management has approved the budget for the development of the production process;
· Analysis from preliminary market research indicates that the products manufactured using the
production process have market potential;
· There is sufficient technical and financial support to carry out the development activities and
subsequent large-scale production; and the expenditures related to the development of the production
process can be reliably allocated. If it is not possible to distinguish between expenditures incurred
during the research phase and those incurred during the development phase all R&D expenditures
incurred shall be recognized in current period profit or loss.
22、 Asset Impairment
Impairment of assets such as long-term equity investments in subsidiaries fixed assets property plant
and equipment construction in progress right-of-use assets intangible assets and goodwill (excluding
inventories investment properties measured at fair value deferred tax assets and financial assets) is
determined as follows:
At the balance sheet date the Group assesses whether there are any indications that an asset may be
impaired. If such indications exist the Group estimates the asset’s recoverable amount and performs an
impairment test. Goodwill arising from business combinations intangible assets with indefinite useful
lives and intangible assets not yet ready for use are tested for impairment annually regardless of
whether there are indications of impairment.Recoverable amount is determined as the higher of the asset’s fair value less costs to sell and the
present value of the asset’s estimated future cash flows.The Group estimates the recoverable amount
on an individual asset basis; where it is difficult to estimate the recoverable amount of an individual
asset the recoverable amount is determined on the basis of the asset group to which the asset belongs.The identification of an asset group is based on whether the primary cash inflows generated by the
asset group are independent of the cash inflows from other assets or asset groups.When the recoverable amount of an asset or asset group is lower than its carrying amount the Group
writes down the carrying amount to the recoverable amount with the write-down amount recognized in
profit or loss for the current period and a corresponding impairment provision is recognized.For the purpose of goodwill impairment testing the carrying amount of goodwill arising from a business
combination is allocated to the relevant asset groups using a reasonable method from the acquisition
37CSG Holding Co. Ltd.
Notes to the Financial Statements
2025 (Unless otherwise stated all amounts are in RMB)
date; where allocation to the relevant asset groups is impractical it is allocated to the relevant group of
asset groups. The relevant asset groups or group of asset groups are those that benefit from the
synergies of the business combination and do not exceed the reporting segments identified by the
Group.During impairment testing if there are indications of impairment for an asset group or portfolio of asset
groups associated with goodwill impairment testing is first performed on the asset group or portfolio of
asset groups excluding goodwill to calculate the recoverable amount and recognize the corresponding
impairment loss. Subsequently impairment testing is performed on the asset group or portfolio of asset
groups including goodwill comparing its carrying amount with the recoverable amount; if the
recoverable amount is lower than the carrying amount an impairment loss on goodwill is recognized.Once asset impairment losses are recognized they are not reversed in subsequent accounting periods.
23、 Deferred Expenses
Deferred expenses incurred by the Group are measured at historical cost and amortized on a
straight-line basis over the estimated period of benefit. For deferred expense items that do not provide
benefits in future accounting periods the entire amortized balance is recognized in profit or loss for the
current period.
24、 Employee Benefits
(1) Scope of Employee Benefits
Employee compensation refers to all forms of remuneration or compensation provided by an entity to
obtain services from employees or to terminate employment relationships. Employee compensation
includes short-term compensation post-employment benefits termination benefits and other long-term
employee benefits. Benefits provided by an entity to employees’ spouses children dependents
survivors of deceased employees and other beneficiaries are also classified as employee
compensation.
(2) Short-Term Employee Benefits
During the accounting period in which employees render services the Group recognizes as liabilities
the actual wages bonuses and social insurance premiums (including medical work-related injury and
maternity insurance premiums) paid on behalf of employees in accordance with prescribed standards
and rates as well as housing provident fund contributions. These amounts are charged to current profit
or loss or included in the cost of related assets.
(3) Post-employment Benefits
Post-employment benefit plans include defined contribution plans and defined benefit plans. A defined
contribution plan is a post-employment benefit plan under which the entity makes fixed contributions to
an independent fund and has no further payment obligations; a defined benefit plan is any
post-employment benefit plan other than a defined contribution plan.Defined Contribution Plans
Defined-contribution plans include basic pension insurance unemployment insurance and others.
38CSG Holding Co. Ltd.
Notes to the Financial Statements
2025 (Unless otherwise stated all amounts are in RMB)
During the accounting period in which employees render service the contribution amount calculated
under a defined contribution plan is recognized as a liability and included in current profit or loss or the
cost of the related asset.
(4) Termination Benefits
When the Group provides termination benefits to employees it recognizes the employee benefit liability
arising from such termination benefits and includes it in current profit or loss on the earlier of the
following two dates: when the Group cannot unilaterally withdraw the termination benefits provided due
to a plan to terminate the employment relationship or a proposed reduction in workforce; or when the
Group recognizes costs or expenses related to a restructuring involving the payment of termination
benefits.
(5) Other Long-Term Benefits
Other long-term employee benefits provided by the Group to employees that meet the criteria for a
defined contribution plan shall be accounted for in accordance with the relevant provisions regarding
defined contribution plans set forth above. Those that meet the criteria for a defined benefit plan shall be
accounted for in accordance with the relevant provisions regarding defined benefit plans set forth above;however the portion of the related employee benefit cost arising from “changes in the remeasurementof the net liability or net asset of the defined benefit plan” shall be recognized in profit or loss for the
current period or included in the cost of the related asset.
25、 Provisions
If an obligation arising from a contingent event meets all of the following conditions the Group
recognizes it as a provision:
* The obligation is a present obligation of the Group;
* It is highly probable that the settlement of the obligation will result in an outflow of economic
benefits from the Group;
* The amount of the obligation can be reliably measured.Provisions are initially measured at the best estimate of the expenditure required to settle the related
present obligation taking into account factors such as the risks uncertainties and the time value of
money associated with the contingent event. Where the time value of money is material the best
estimate is determined by discounting the related future cash outflows. The Group reviews the carrying
amount of provisions at the balance sheet date and adjusts the carrying amount to reflect the current
best estimate.If all or part of the expenditure required to settle a recognized provision is expected to be reimbursed by
a third party or another party the reimbursement amount is recognized as a separate asset only when it
is virtually certain that it will be received. The recognized reimbursement amount does not exceed the
carrying amount of the recognized liability.
26、 Revenue
39CSG Holding Co. Ltd.
Notes to the Financial Statements
2025 (Unless otherwise stated all amounts are in RMB)
(1) General Principles
The Group recognizes revenue when it has satisfied the performance obligations under the contract
that is when the customer obtains control of the relevant goods or services.Where a contract contains two or more performance obligations the Group allocates the transaction
price to each performance obligation at the contract inception date in proportion to the relative selling
prices of the goods or services promised under each individual performance obligation and measures
revenue based on the transaction price allocated to each performance obligation.Performance of a performance obligation is deemed to occur over a period of time if any of the following
conditions are met; otherwise it is deemed to occur at a point in time:
* The customer obtains and consumes the economic benefits arising from the Group’s performance at
the same time the Group performs its obligations.* The customer is able to control the goods in progress during the Group’s performance of the
contract.* The goods produced during the Group’s performance have no alternative use and the Group has
the right to receive payment for the portion of performance completed to date throughout the contract
period.For performance obligations satisfied over a period of time the Group recognizes revenue over that
period based on the stage of completion. If the stage of completion cannot be reasonably determined
and the Group expects to be compensated for costs already incurred revenue is recognized based on
the amount of costs already incurred until the stage of completion can be reasonably determined.For performance obligations satisfied at a point in time the Group recognizes revenue when the
customer obtains control of the relevant goods or services. In determining whether the customer has
obtained control of the goods or services the Group considers the following indicators:
* The Group has a present right to receive payment for the goods or services meaning the customer
has a present obligation to pay for them.* The Group has transferred legal title to the goods to the customer meaning the customer now holds
legal title to the goods.* The Group has transferred physical possession of the goods to the customer meaning the customer
is in physical possession of the goods.* The Group has transferred the significant risks and rewards of ownership of the goods to the
customer meaning the customer has assumed the significant risks and rewards of ownership of the
goods.* The customer has accepted the goods or services.* Other indications that the customer has obtained control of the goods.
40CSG Holding Co. Ltd.
Notes to the Financial Statements
2025 (Unless otherwise stated all amounts are in RMB)
(2) Specific Methods
The Group’s revenue primarily derives from the following business activities: sales of products
provision of external consulting services and processing services.Sales of Products
The Group manufactures and sells float glass photovoltaic glass architectural glass solar
industry-related products electronic glass and display devices.For domestic sales the Group ships products to the agreed delivery location in accordance with the
contract or has them picked up by the buyer and recognizes revenue upon the buyer’s confirmation of
receipt or pickup.For export sales the Group recognizes revenue after completing export customs clearance procedures
and loading the products onto vessels in accordance with the trade terms specified in the sales
contracts or after transporting the products to the designated delivery locations.For revenue from photovoltaic power generation in the solar and other industries the Group recognizes
revenue when electricity is supplied to the provincial power grid company where each power plant is
located using the mutually confirmed settlement volume as the monthly sales volume and the feed-in
tariff approved by the National Development and Reform Commission or the contractually agreed-upon
electricity price as the sales unit price.The credit terms granted by the Group to customers in various industries are consistent with industry
practices and do not contain any significant financing components.The Group provides product quality warranties for its products and recognizes corresponding provisions.The Group does not provide any additional services or quality warranties in connection therewith;
therefore such product quality warranties do not constitute separate performance obligations.For sales of glass products subject to return clauses revenue is recognized up to the amount of
cumulative revenue recognized for which it is highly probable that no significant reversal will occur. The
Group recognizes a liability for the expected return amount and simultaneously recognizes an asset
equal to the carrying amount of the goods expected to be returned at the time of transfer less the
estimated costs of recovering those goods (including impairment of the returned goods).Provision of Consulting and Processing Services
The Group provides consulting and processing services to external parties. Since customers obtain and
consume the economic benefits arising from the Group’s performance simultaneously with the Group’s
performance the Group recognizes revenue based on the stage of completion. The stage of completion
is determined by the ratio of costs incurred to estimated total costs. At the balance sheet date the
Group re-estimates the stage of completion for services already performed to reflect changes in the
status of performance.When the Group recognizes revenue based on the stage of completion of services rendered the portion
for which the Group has obtained an unconditional right to receive payment is recognized as accounts
receivable while the remaining portion is recognized as a contract asset. The Group recognizes an
allowance for expected credit losses against both accounts receivable and contract assets. If the
41CSG Holding Co. Ltd.
Notes to the Financial Statements
2025 (Unless otherwise stated all amounts are in RMB)
contract consideration received or receivable by the Group exceeds the value of services rendered the
excess is recognized as contract liabilities.The Group presents contract assets and contract liabilities
under the same contract on a net basis.
27、 Contract costs
Contract costs include incremental costs incurred to secure the contract and costs to fulfill the contract.Incremental costs incurred to obtain a contract refer to costs that would not have been incurred had the
Company not obtained the contract (such as sales commissions). If such costs are expected to be
recovered the Company recognizes them as contract acquisition costs and classifies them as an asset.Other expenditures incurred by the Company to obtain a contract other than incremental costs
expected to be recovered are recognized in profit or loss for the period in which they are incurred.Costs incurred to fulfill a contract that do not fall within the scope of Chinese Accounting Standards for
Business Enterprises (such as inventories) and simultaneously meet the following conditions are
recognized by the Company as contract fulfillment costs and classified as an asset:
* The costs are directly attributable to a current or anticipated contract including direct labor direct
materials manufacturing overhead (or similar costs) costs explicitly borne by the customer and other
costs incurred solely for the contract;
* The cost increases the Company’s resources available for future fulfillment of performance
obligations;
* The cost is expected to be recovered.Assets recognized as contract costs and assets recognized as contract performance costs (hereinafter
referred to as “assets related to contract costs”) are amortized on the same basis as the revenue from
the related goods or services and recognized in profit or loss for the current period.When the carrying amount of an asset related to contract costs exceeds the sum of the following two
items the Company recognizes asset impairment losses on the excess amount:
* The remaining consideration expected to be received by the Company from the transfer of the
goods or services related to the asset;
* The estimated costs to be incurred to transfer the related goods or services.
28、 Government Grants
Government grants are recognized when the conditions attached to the grants are met and the grants
are expected to be received.Government grants for monetary assets are measured at the amount received or receivable.Government grants for non-monetary assets are measured at fair value; if fair value cannot be reliably
determined they are measured at a nominal amount of 1 yuan.
42CSG Holding Co. Ltd.
Notes to the Financial Statements
2025 (Unless otherwise stated all amounts are in RMB)
Government grants related to assets refer to grants received by the Group that are used to acquire
construct or otherwise form long-term assets; all other grants are classified as grants related to income.Where government documents do not explicitly specify the recipients of the grants if the grant can
result in the formation of a long-term asset the portion of the grant corresponding to the value of the
asset is treated as an asset-related grant and the remaining portion is treated as an income-related
grant; if it is difficult to distinguish between the two the entire grant is treated as an income-related
grant.Government grants related to assets are recognized as deferred income and recognized in profit or loss
over the useful life of the related asset using a reasonable and systematic method. Government grants
related to income that are intended to compensate for costs expenses or losses already incurred are
recognized in current profit or loss; those intended to compensate for costs expenses or losses in
future periods are recognized as deferred income and recognized in current profit or loss in the period in
which the related costs expenses or losses are recognized.Government grants measured at their
nominal amount are recognized directly in profit or loss for the current period. The Group applies a
consistent approach to the accounting for identical or similar government grant transactions.Government grants related to ordinary activities are recognized as other income in accordance with the
substance of the economic transaction. Government grants unrelated to ordinary activities are
recognized as non-operating income.When a recognized government grant is required to be returned if the grant was initially recognized by
reducing the carrying amount of a related asset the carrying amount of the asset is adjusted; if there is
a related deferred income balance the carrying amount of the deferred income is reduced and any
excess is recognized in profit or loss for the current period; in other cases the amount is recognized
directly in profit or loss for the current period.
29、 Deferred Tax Assets and Deferred Tax Liabilities
Income taxes consist of current income taxes and deferred income taxes. Except for adjustments to
goodwill arising from business combinations or deferred income taxes related to transactions or events
recognized directly in equity all income taxes are recognized as income tax expense in current profit or
loss.The Group recognizes deferred income taxes using the balance sheet liability method based on
temporary differences between the carrying amounts of assets and liabilities on the balance sheet date
and their tax bases.A deferred tax liability is recognized for every taxable temporary difference unless the taxable
temporary difference arises from the following transactions:
* the initial recognition of goodwill or the initial recognition of assets or liabilities arising from
transactions that do not constitute a business combination and that at the time of the transaction affect
neither accounting profit nor taxable income (except for individual transactions where the initial
recognition of assets and liabilities results in an equal amount of taxable temporary differences and
deductible temporary differences);
43CSG Holding Co. Ltd.
Notes to the Financial Statements
2025 (Unless otherwise stated all amounts are in RMB)
* Taxable temporary differences related to investments in subsidiaries joint ventures and associates
where the timing of the reversal of the temporary difference is controlled and it is probable that the
temporary difference will not reverse in the foreseeable future.For deductible temporary differences deductible losses and tax credits that can be carried forward to
future years the Group recognizes the resulting deferred tax assets to the extent that it is probable that
future taxable income will be available against which the deductible temporary differences deductible
losses and tax credits can be offset unless the deductible temporary difference arises from the
following transactions:
* The transaction is not a business combination and at the time of the transaction affects neither
accounting profit nor taxable income (except for individual transactions where the assets and liabilities
initially recognized give rise to equal amounts of taxable temporary differences and deductible
temporary differences);
* For deductible temporary differences related to investments in subsidiaries joint ventures and
associates a corresponding deferred tax asset is recognized if both of the following conditions are met:
the temporary difference is likely to reverse in the foreseeable future and it is probable that taxable
income will be available in the future against which the deductible temporary difference can be utilized.At the balance sheet date the Group measures deferred tax assets and deferred tax liabilities using the
tax rates expected to apply in the period in which the asset is expected to be recovered or the liability is
expected to be settled and reflects the income tax consequences of the manner in which the asset is
expected to be recovered or the liability is expected to be settled at the balance sheet date.At the balance sheet date the Group reviews the carrying amount of deferred tax assets. If it is
probable that sufficient taxable income will not be available in future periods to utilize the benefits of the
deferred tax assets the carrying amount of the deferred tax assets is written down. The written-down
amount is reversed when it becomes probable that sufficient taxable income will be available.At the balance sheet date deferred tax assets and deferred tax liabilities are presented net of each
other when both of the following conditions are met:
* The relevant tax entity within the Group has a legal right to settle current income tax assets and
current income tax liabilities on a net basis;
* The deferred tax assets and deferred tax liabilities relate to income taxes levied by the same tax
authority on the same taxable entity within the Group.
30、 Leases
(1) Recognition of Leases
At the commencement of the contract the Group as lessee or lessor assesses whether the customer
under the contract has the right to obtain substantially all of the economic benefits arising from the use
of the identified asset(s) during the period of use and has the right to direct the use of the identified
asset(s) during that period. If one party to the contract transfers the right to control the use of one or
44CSG Holding Co. Ltd.
Notes to the Financial Statements
2025 (Unless otherwise stated all amounts are in RMB)
more identified assets for a certain period in exchange for consideration the Group classifies the
contract as a lease or as containing a lease.
(2) The Group as a Lessee
At the commencement of the lease term the Group recognizes right-of-use assets and lease liabilities
for all leases except for short-term leases and leases of low-value assets that are accounted for using
the simplified method.For the accounting policy for right-of-use assets see Note 3.30.A lease liability is initially measured at the present value of the lease payments not yet due at the
commencement date of the lease calculated using the implicit rate of the lease; if the implicit rate of the
lease cannot be determined the incremental borrowing rate is used as the discount rate.Lease
payments include: fixed payments and payments that are effectively fixed net of any lease incentives
where applicable; variable lease payments that depend on an index or rate; the exercise price of a
purchase option provided the lessee reasonably expects to exercise the option;amounts payable upon
exercising a termination option provided that the lease term reflects the lessee’s intention to exercise
such option; and amounts expected to be paid based on the residual value of guarantees provided by
the lessee. Subsequently interest expense on the lease liability for each period of the lease term is
calculated using a fixed periodic rate and recognized in profit or loss for the current period. Variable
lease payments not included in the measurement of the lease liability are recognized in profit or loss
when incurred.Short-term leases
A short-term lease is a lease with a lease term of 12 months or less at the commencement of the lease
excluding leases containing a purchase option.The Group capitalizes lease payments for short-term leases into the cost of the related asset or
recognizes them in profit or loss for the period using the straight-line method over the lease term.Leases of Low-Value Assets
A lease of low-value assets is a lease where the value of the individual leased asset is less than RMB
100000 when new.
The Group capitalizes lease payments for low-value asset leases into the cost of the related assets or
recognizes them in profit or loss for the period using the straight-line method over the lease term.For low-value asset leases the Group elects to apply the simplified treatment described above based
on the specific circumstances of each lease.Lease modifications
If a lease modification occurs and meets all of the following conditions the Group accounts for the lease
modification as a separate lease: * the lease modification expands the scope of the lease by adding
one or more right-of-use assets; and * the additional consideration is equivalent to the separate price
of the expanded portion of the lease adjusted for the terms of the contract.
45CSG Holding Co. Ltd.
Notes to the Financial Statements
2025 (Unless otherwise stated all amounts are in RMB)
Where a lease modification is not accounted for as a separate lease on the effective date of the
modification the Group reallocates the consideration of the modified contract re-determines the lease
term and remeasures the lease liability based on the present value of the modified lease payments and
the revised discount rate.If a lease modification results in a reduction in the scope of the lease or a shortening of the lease term
the Group reduces the carrying amount of the right-of-use assets accordingly and recognizes the
related gain or loss from the partial or complete termination of the lease in profit or loss for the current
period.For other lease modifications that result in the remeasurement of the lease liability the Group adjusts
the carrying amount of the right-of-use assets accordingly.
(3) The Group as Lessor
When the Group acts as a lessor leases that substantially transfer all risks and rewards incidental to
ownership of the asset are recognized as finance leases; all other leases are recognized as operating
leases.Finance leases
For finance leases the Group recognizes the net investment in the lease as the carrying amount of
finance lease receivables at the commencement of the lease term. The net investment in the lease is
the sum of the unguaranteed residual value and the present value of lease payments not yet received at
the commencement of the lease term discounted at the implicit rate of the lease. The Group as the
lessor calculates and recognizes interest income for each period of the lease term using a fixed
periodic rate.Variable lease payments received by the Group as the lessor that are not included in the
measurement of the net investment in the lease are recognized in profit or loss when incurred.The derecognition and impairment of finance lease receivables are accounted for in accordance with
the provisions of Chinese Accounting Standards for Business Enterprises No. 22—Recognition and
Measurement of Financial Instruments and Chinese Accounting Standards for Business Enterprises No.
23—Transfers of Financial Assets.
Operating Leases
For operating leases the Group recognizes rent as income in each period of the lease term using the
straight-line method. Initial direct costs incurred in connection with operating leases shall be capitalized
and amortized over the lease term on the same basis as the recognition of rental income with the
amortization charged to income in each period. Variable lease payments received in connection with
operating leases that are not included in the lease receivable are recognized in profit or loss when
incurred.Lease Modifications
If an operating lease is modified the Group accounts for it as a new lease from the effective date of the
modification and any lease receivables or prepaid lease payments related to the original lease are
treated as lease receivables for the new lease.
46CSG Holding Co. Ltd.
Notes to the Financial Statements
2025 (Unless otherwise stated all amounts are in RMB)
If a finance lease is modified and meets both of the following conditions the Group accounts for the
modification as a separate lease: * the modification expands the scope of the lease by granting the
right to use one or more additional right-of-use assets; and * the additional consideration is
equivalent to the separate price of the expanded portion of the lease adjusted for the terms of the
contract.If a modification to a finance lease is not accounted for as a separate lease the Group accounts for the
modified lease as follows: * If the modification takes effect on the lease commencement date and the
lease would be classified as an operating lease the Group accounts for it as a new lease from the
effective date of the modification using the net investment in the lease prior to the effective date of the
modification as the carrying amount of the leased asset;* If the modification takes effect on the lease
commencement date and the lease is classified as a finance lease the Group accounts for it in
accordance with the provisions regarding contract modifications or renegotiations in Chinese
Accounting Standards for Business Enterprises No. 22—Recognition and Measurement of Financial
Instruments.
31、Right-of-use assets
(1) Criteria for Recognizing Right-of-Use Assets
Right-of-use assets are assets that the Group as a lessee has the right to use during the lease term.At the commencement of the lease term right-of-use assets are initially measured at cost. This cost
includes: the initial measurement amount of the lease liability; lease payments made on or before the
commencement of the lease term net of any lease incentives already received; initial direct costs
incurred by the Group as the lessee;costs expected to be incurred by the Group as the lessee for
dismantling and removing the leased asset restoring the site where the leased asset is located or
returning the leased asset to the condition specified in the lease terms. The Group as the lessee
recognizes and measures such dismantling and restoration costs in accordance with Chinese
Accounting Standards for Business Enterprises No. 13—Contingencies. Subsequent adjustments are
made for any remeasurement of the lease liability.
(2) Depreciation Method for Right-of-Use Assets
The Group uses the straight-line method to calculate depreciation. Where the Group as the lessee can
reasonably determine that it will obtain ownership of the leased asset at the end of the lease term
depreciation is calculated over the remaining useful life of the leased asset. Where the Group cannot
reasonably determine that it will obtain ownership of the leased asset at the end of the lease term
depreciation is calculated over the shorter of the lease term and the remaining useful life of the leased
asset.
(3) For the impairment testing method and the recognition of impairment losses for right-of-use assets see
Note 3.22.
32、 Work Safety Expenses
In accordance with relevant documents issued by the Ministry of Finance and the State Administration
of Work Safety the Group’s subsidiaries engaged in the production and sale of polysilicon calculate
47CSG Holding Co. Ltd.
Notes to the Financial Statements
2025 (Unless otherwise stated all amounts are in RMB)
work safety expenses on a monthly basis using the actual operating revenue of the previous year as the
basis applying a degressive rate:
(a) For operating revenue of RMB 10 million or less 4.5% is allocated;
(b) For the portion of operating revenue between RMB 10 million and RMB 100 million (inclusive)
2.25% is allocated;
(c) For the portion of operating revenue between RMB 100 million and RMB 1 billion (inclusive) 0.55%
is allocated;
(d) For the portion of operating revenue exceeding 1 billion yuan 0.2% shall be allocated.In accordance with the "Measures for the Allocation and Use of Enterprise Work Safety Expenses" (Cai
Zi [2022] No. 136) the Group’s subsidiaries engaged in mining and processing shall base their
allocation on mining output.Allocation standards for work safety expenses: For non-metallic mines 3 yuan per ton for open-pit
mines and 8 yuan per ton for underground mines;
Work safety expenses are primarily used for expenditures related to the improvement renovation and
maintenance of safety protection equipment and facilities. When accrued work safety expenses are
included in the cost of relevant products or in current period profit or loss and are simultaneously
recorded in the special reserve account.Upon utilization for expense-type expenditures within the
prescribed scope of use the special reserve is directly reduced when the expenses are incurred; for
capital expenditures the incurred expenses are aggregated under the "construction in progress"
account. Upon project completion and reaching the intended usable state the assets are transferred to
fixed assets and the special reserve is reduced by the cost of the fixed assets while the corresponding
amount of accumulated depreciation is recognized. Depreciation is no longer accrued for such fixed
assets in subsequent periods.
33、 Significant Accounting Judgments and Estimates
The Group continuously evaluates its significant accounting estimates and key assumptions based on
historical experience and other factors including reasonable expectations regarding future events.Significant accounting estimates and key assumptions that pose a risk of causing a material adjustment
to the carrying amounts of assets and liabilities in the next fiscal year are listed below:
Classification of Financial Assets
The Group’s significant judgments in determining the classification of financial assets include the
analysis of business models and the characteristics of contractual cash flows.The Group determines the business model for managing financial assets at the level of the financial
asset portfolio taking into account factors such as the manner in which the performance of financial
assets is evaluated and reported to key management personnel the risks affecting the performance of
financial assets and how they are managed and the manner in which relevant business managers are
compensated.
48CSG Holding Co. Ltd.
Notes to the Financial Statements
2025 (Unless otherwise stated all amounts are in RMB)
The Group makes the following key judgments when assessing whether the contractual cash flows of
financial assets are consistent with an underlying lending arrangement: whether the principal is likely to
vary in timing or amount during the term of the financial asset due to prepayments or other reasons; and
whether the interest solely reflects the time value of money credit risk other risks inherent in lending
and the consideration for costs and profits.For example does the prepayment amount reflect only the
principal not yet paid and interest based on the outstanding principal as well as reasonable
compensation for the early termination of the contract
Measurement of expected credit losses on accounts receivable
The Group calculates expected credit losses on accounts receivable using the exposure to default risk
and the expected credit loss rate with the expected credit loss rate determined based on the probability
of default and the loss given default. In determining the expected credit loss rate the Group uses data
such as internal historical credit loss experience and adjusts historical data based on current conditions
and forward-looking information.When considering forward-looking information the Group uses
indicators such as the risk of an economic downturn changes in the external market environment the
technological environment and customer conditions. The Group regularly monitors and reviews the
assumptions related to the calculation of expected credit losses.Impairment of Fixed Assets Construction in Progress
At the balance sheet date the Company assesses non-current assets (excluding financial assets) for
indications of possible impairment and performs an impairment test when there are indications that their
carrying amount may not be recoverable.An impairment occurs when the carrying amount of an asset or asset group exceeds its recoverable
amount which is the higher of fair value less costs to sell and the present value of estimated future cash
flows. Fair value less costs to sell is determined by reference to the contract price of similar assets in
arm’s-length transactions or observable market prices less incremental costs directly attributable to the
disposal of the asset.In determining the present value of estimated future cash flows significant
judgments must be made regarding the asset’s (or asset group’s) production volume selling price
related operating costs and the discount rate used to calculate the present value. When estimating the
recoverable amount the Company utilizes all available relevant information including forecasts of
production volume selling price and related operating costs based on reasonable and supportable
assumptions.Goodwill Impairment
The Group assesses whether goodwill is impaired at least annually. This requires estimating the value
in use of the asset groups to which goodwill has been allocated. In estimating value in use the Group
must estimate future cash flows from the asset group and select an appropriate discount rate to
calculate the present value of those future cash flows.Development Expenditures
In determining the amount to be capitalized management must make assumptions regarding the
asset’s expected future cash flows the discount rate to be applied and the estimated period over which
the benefits will be realized.
49CSG Holding Co. Ltd.
Notes to the Financial Statements
2025 (Unless otherwise stated all amounts are in RMB)
deferred tax assets
Deferred tax assets should be recognized for all unused tax losses to the extent that it is probable that
sufficient taxable profit will be available against which the losses can be utilized. This requires
management to exercise significant judgment in estimating the timing and amount of future taxable
profit taking into account tax planning strategies to determine the amount of deferred tax assets to be
recognized.
34、 Changes in Significant Accounting Policies and Accounting Estimates
There were no changes in accounting policies or accounting estimates during the current period.IV. Taxes
1. Major Tax Categories and Rates
Tax Type Tax Base Tax Rate
Corporate Income Tax Taxable Income 16.5% 25%
Taxable Value-Added Amount (The tax
payable is calculated as the balance of
Value-Added Tax taxable sales multiplied by the 3%–13%
applicable tax rate minus input tax
credits allowed for the current period)
Urban Maintenance and Construction
Tax Actual turnover tax paid 1%–7%
Education Surcharge Actual amount of turnover tax paid 5%
2. Tax Incentives
Tianjin CSG Energy-Saving Glass Co. Ltd. (hereinafter referred to as “Tianjin Energy-Saving Company”)passed the 2024 re-certification review for high-tech enterprise status and has obtained the “High-TechEnterprise Certificate” which is valid for three years. The company is eligible for a 15% corporate
income tax rate for a period of three years starting from 2024.Dongguan CSG Engineering Glass Co. Ltd. (hereinafter referred to as “Dongguan EngineeringCompany”) passed the 2025 high-tech enterprise qualification review and has obtained the “High-TechEnterprise Certificate” which is valid for three years. It is eligible for a 15% corporate income tax rate for
a period of three years starting from 2025.Wujiang CSG East China Engineering Glass Co. Ltd. (hereinafter referred to as “Wujiang EngineeringCompany”) passed the 2023 re-certification review for high-tech enterprise status and has obtained the
“High-Tech Enterprise Certificate” which is valid for three years. The company is eligible for a 15%
corporate income tax rate for the three-year period starting from 2023.Dongguan CSG Solar Glass Co. Ltd. (hereinafter referred to as “Dongguan Solar Company”) passedthe 2023 high-tech enterprise qualification re-examination and has obtained the “High-Tech EnterpriseCertificate” which is valid for three years. The company is eligible for a 15% corporate income tax rate
for the three-year period starting from 2023.
50CSG Holding Co. Ltd.
Notes to the Financial Statements
2025 (Unless otherwise stated all amounts are in RMB)
Yichang CSG Silicon Materials Co. Ltd. (hereinafter referred to as “Yichang Silicon Materials”) passedthe 2023 re-certification review for high-tech enterprise status and has obtained the “High-TechEnterprise Certificate” which is valid for three years. The company is eligible for a 15% corporate
income tax rate for the three-year period starting from 2023.Dongguan CSG Photovoltaic Technology Co. Ltd. (hereinafter referred to as “Dongguan PhotovoltaicCompany”) passed the 2025 high-tech enterprise qualification re-examination and has obtained the
“High-Tech Enterprise Certificate” which is valid for three years. The company is eligible for a 15%
corporate income tax rate for the three-year period starting from 2025.Hebei Vision Glass Co. Ltd. (hereinafter referred to as “Hebei Vision Glass”) passed the 2025re-certification review for high-tech enterprise status and has obtained the “High-Tech EnterpriseCertificate” which is valid for three years. The company is eligible for a 15% corporate income tax rate
for the three-year period starting from 2025.Wujiang CSG Glass Co. Ltd. (hereinafter referred to as “Wujiang CSG Glass”) passed the 2023
re-evaluation for High-Tech Enterprise status and has obtained the “High-Tech Enterprise Certificate”
which is valid for three years. The company is eligible for a 15% corporate income tax rate for the
three-year period starting from 2023.Xianning CSG Glass Co. Ltd. (hereinafter referred to as “Xianning Float Glass”) passed the 2023
re-evaluation for High-Tech Enterprise status and has obtained the “High-Tech Enterprise Certificate”
which is valid for three years. The company is eligible for a 15% corporate income tax rate for the
three-year period starting from 2023.Xianning CSG Energy-Saving Glass Co. Ltd. (hereinafter referred to as “Xianning Energy-SavingCompany”) passed the 2024 high-tech enterprise qualification re-examination and has obtained the
“High-Tech Enterprise Certificate” which is valid for three years. The company is eligible for a 15%
corporate income tax rate for a period of three years starting from 2024.Yichang CSG Optoelectronic Glass Co. Ltd. (hereinafter referred to as “Yichang OptoelectronicCompany”) passed the 2024 high-tech enterprise qualification re-examination and has obtained the
“High-Tech Enterprise Certificate” which is valid for three years. The company is eligible for a 15%
corporate income tax rate for a period of three years starting from 2024.Yichang CSG Display Devices Co. Ltd. (hereinafter referred to as “Yichang Display Company”)
successfully passed the 2024 High-Tech Enterprise qualification review and has obtained the
“High-Tech Enterprise Certificate” which is valid for three years. The company is eligible for a 15%
corporate income tax rate for the three-year period starting from 2024.Qingyuan CSG Energy-Saving New Materials Co. Ltd. (hereinafter referred to as “QingyuanEnergy-Saving Company”) passed the 2025 High-Tech Enterprise qualification re-evaluation and has
obtained the “High-Tech Enterprise Certificate” which is valid for three years. The company will be
eligible for a 15% corporate income tax rate for a period of three years starting from 2025.Hebei CSG Glass Co. Ltd. (hereinafter referred to as “Hebei CSG Glass”) passed the 2024 high-tech
enterprise qualification review and has obtained the “High-Tech Enterprise Certificate” which is valid for
three years. The company is eligible for a 15% corporate income tax rate for a period of three years
starting from 2024.
51CSG Holding Co. Ltd.
Notes to the Financial Statements
2025 (Unless otherwise stated all amounts are in RMB)Xianning CSG Optoelectronic Glass Co. Ltd. (hereinafter referred to as “Xianning OptoelectronicCompany”) passed the 2025 re-evaluation for High-Tech Enterprise status and has obtained the
“High-Tech Enterprise Certificate” which is valid for three years. The company is eligible for a 15%
corporate income tax rate for a period of three years starting from 2025.Zhaoqing CSG Energy-Saving Glass Co. Ltd. (hereinafter referred to as “Zhaoqing Energy-SavingCompany”) was recognized as a high-tech enterprise in 2025 and has obtained the “High-TechEnterprise Certificate” which is valid for three years. It will be subject to a 15% corporate income tax
rate for the three-year period starting from 2025.Sichuan CSG Energy-Saving Glass Co. Ltd. (hereinafter referred to as “Sichuan Energy-SavingCompany”) is eligible for corporate income tax incentives under the Western Development Strategy and
is subject to a 15% corporate income tax rate for the current fiscal year.Chengdu CSG Glass Co. Ltd. (hereinafter referred to as “Chengdu CSG Glass”) is eligible for corporate
income tax incentives under the Western Development Strategy and is subject to a 15% corporate
income tax rate for the current fiscal year.Xian CSG Energy-Saving Glass Technology Co. Ltd. (hereinafter referred to as “Xi’an Energy-SavingCompany”) is eligible for the corporate income tax incentives under the Western Development Strategy
and is subject to a 15% corporate income tax rate for the current fiscal year.Guangxi CSG New Energy Materials Technology Co. Ltd. (hereinafter referred to as “Guangxi NewEnergy Materials Company”) is eligible for corporate income tax incentives under the Western
Development Strategy and is subject to a corporate income tax rate of 15% for the current fiscal year.Qinghai CSG New Energy Technology Co. Ltd. (hereinafter referred to as “Qinghai New EnergyCompany”) is eligible for corporate income tax incentives under the Western Development Initiative and
is subject to a corporate income tax rate of 15% for the current fiscal year.Yichang CSG New Energy Co. Ltd. (hereinafter referred to as “Yichang CSG New Energy Company”)Zhaoqing CSG New Energy Technology Co. Ltd. (hereinafter referred to as “Zhaoqing CSG NewEnergy Company”) Xianning CSG Photovoltaic New Energy Co. Ltd. (hereinafter referred to as
“Xianning CSG Photovoltaic Company”)Anhui CSG Photovoltaic Energy Co. Ltd. (hereinafter referred
to as “Anhui Photovoltaic Company”) and Suzhou CSG Photovoltaic Energy Co. Ltd. (hereinafter
referred to as “Suzhou Photovoltaic Company”) are classified as national key public infrastructure
projects under Article 87 of the Implementation Regulations of the Enterprise Income Tax Law. They are
eligible for the “three-year exemption and three-year 50% reduction” tax incentive policy meaning that
starting from the tax year in which they first generate operating income they are exempt from enterprise
income tax for the first three years and subject to a 50% reduction in enterprise income tax for the fourth
through sixth years.Anhui CSG Quartz Materials 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% corporate income tax rate applies for a period of three
years starting from 2023.Anhui CSG New Energy Materials Technology Co. Ltd. (hereinafter referred to as “Anhui New EnergyCompany”) was recognized as a high-tech enterprise in 2023 and has obtained the “High-Tech
52CSG Holding Co. Ltd.
Notes to the Financial Statements
2025 (Unless otherwise stated all amounts are in RMB)Enterprise Certificate.” The certificate is valid for three years and a 15% corporate income tax rate
applies for the three-year period starting from 2023.Dongguan CSG Intelligent Equipment Co. Ltd. (hereinafter referred to as “Dongguan EquipmentCompany”) was recognized as a high-tech enterprise in 2024 and has obtained the “High-TechEnterprise Certificate.” The certificate is valid for three years and a 15% corporate income tax rate
applies for the three-year period starting from 2024.Pursuant to the “Announcement on the Value-Added Tax Additional Deduction Policy for AdvancedManufacturing Enterprises” (Announcement No. 43 of 2023 by the Ministry of Finance and the State
Taxation Administration) the Company’s high-tech subsidiaries are permitted from January 1 2023 to
December 31 2027 to deduct an additional 5% of the current period’s deductible input VAT from the
amount of VAT payable.V. Notes to the Consolidated Financial Statements
1. Cash and Cash Equivalents
Item Ending Balance Opening Balance
Cash on Hand 151026
Bank deposits 2981011937 3367873386
Other cash and cash equivalents 160812184 53654096
Total 3141975147 3421527482
Of which: Total funds held overseas 68819786 63275963
Total funds subject to restrictions on use
due to mortgages pledges or freezes 136004824 53654096
2. Trading Financial Assets
Item Balance at end of period Opening Balance
Financial assets measured at fair value
with changes recognized in profit or loss 230000000 96000000
Of which:
Structured deposits 230000000 96000000
Total 230000000 96000000
3. Notes Receivable
(1) Notes Receivable by Category
Item Ending Balance Beginning Balance
Banker’s Acceptances 1069651635 1042625567
Commercial Acceptances 350409591 98277176
Total 1420061226 1140902743
53CSG Holding Co. Ltd.
Notes to the Financial Statements
2025 (Unless otherwise stated all amounts are in RMB)
(2) Disclosure by bad debt provision method
Ending Balance
Category Carrying Amount allowance for doubtful accounts
Carrying Value
Amount Percentage Amount Allowance Ratio
Notes receivable for
which allowance for
doubtful accounts is
calculated on an
individual basis
Notes receivable for
which allowance for
doubtful accounts is 1422318292 100% 2257066 0.16% 1420061226
calculated on a
collective basis
Of which:
Banker's acceptances 1069651635 75.20% 1069651635
Commercial
Acceptances 352666657 24.80% 2257066 0.64% 350409591
Total 1422318292 100% 2257066 0.16% 1420061226
Continued
Beginning balance
Category Carrying Balance allowance for doubtful accounts
Carrying Value
Amount Ratio Amount Provision ratio
Notes receivable for
which allowance for
doubtful accounts is
calculated on an
individual basis
Notes receivable for
which allowance for
doubtful accounts is 1141735264 100% 832521 0.07% 1140902743
calculated on a
collective basis
Of which:
Banker's acceptances 1042625567 91% 1042625567
Commercial
Acceptances 99109697 9% 832521 0.84% 98277176
Total 1141735264 100% 832521 0.07% 1140902743
Allowance for doubtful accounts based on commercial acceptance bill portfolio:
Ending Balance
Name
Carrying Amount allowance for doubtfulaccounts Provision Ratio
Commercial Acceptances 352666657 2257066 0.64%
Total 352666657 2257066 0.64%
54CSG Holding Co. Ltd.
Notes to the Financial Statements
2025 (Unless otherwise stated all amounts are in RMB)
(3) Details of the Allowance for Doubtful Accounts Accrued Recovered or Reversed During the Period
Allowance for doubtful accounts for the current period:
Category Beginning
Changes During the Period
Balance Provision Recovered or
Ending Balance
Reversed Write-off Other
Commercial
Acceptances 832521 1424545 2257066
Total 832521 1424545 2257066
(4) Notes receivable pledged by the Company at the end of the period
Item Amount pledged at the end of the period
Banker’s Acceptances 734789756
Total 734789756
(5) Notes receivable endorsed or discounted by the Company as of the end of the period and not yet
due as of the balance sheet date
Item Amount not derecognized at the end of the period
Banker’s acceptances 472820885
Total 472820885
4. Accounts Receivable
(1) Disclosure by Age
Age Ending Book Balance Opening Balance
Within 1 year (including 1 year) 1690799801 1570990322
1 to 2 years 49245975 34464346
2 to 3 years 27330764 36721437
3+ years 207282017 220964507
Total 1974658557 1863140612
(2) Disclosure by bad debt provision method
Ending Balance
Category Carrying Amount allowance for doubtful accounts
Carrying Value
Amount Percentage Amount Allowance Ratio
Accounts receivable
for which an
allowance for doubtful 150969997 7.65% 144973834 96.03% 5996163
accounts is provided
on an individual basis
Accounts receivable
for which allowance 1823688560 92.35% 27519672 1.51% 1796168888
for doubtful accounts
55CSG Holding Co. Ltd.
Notes to the Financial Statements
2025 (Unless otherwise stated all amounts are in RMB)
Category Ending Balance
is calculated by group
Of which:
Receivables from
non-related parties 1823688560 92.35% 27519672 1.51% 1796168888
Total 1974658557 100% 172493506 8.74% 1802165051
Continued
Beginning Balance
Category Carrying Balance allowance for doubtful accounts
Carrying Value
Amount Ratio Amount Allowance Ratio
Accounts receivable
for which an
allowance for
doubtful accounts is 169387012 9.09% 155963004 92.07% 13424008
provided on an
individual basis
Accounts receivable
for which allowance
for doubtful accounts 1693753600 90.91% 20549927 1.21% 1673203673
is calculated by group
Of which:
Receivables from
non-related parties 1693753600 90.91% 20549927 1.21% 1673203673
Total 1863140612 100% 176512931 9.47% 1686627681
Number of categories for individual allowance for doubtful accounts:
Name Beginning Balance Ending Balance
Carrying allowance for allowance
Amount doubtful Book Balance for doubtful
Accrual Reason for provision
accounts accounts ratio
This primarily reflects the
transfer of commercial
acceptance bills issued by
Evergrande and its
subsidiaries—which were
endorsed by customers but
Total for could not be honored—from
Individual 169387012 155963004 150969997 144973834 96.03% notes receivable to accounts
Allowances receivable as well as the
partial or full allowance for
doubtful accounts on certain
accounts receivable due to
factors such as the
deterioration of customers’
business operations.Total 169387012 155963004 150969997 144973834 96.03%
(3) Details of the Allowance for Doubtful Accounts Accrued Recovered or Reversed During the
Current Period
56CSG Holding Co. Ltd.
Notes to the Financial Statements
2025 (Unless otherwise stated all amounts are in RMB)
Allowance for doubtful accounts for the current period:
Category Beginning Changes During the Period
Balance Ending BalanceProvision Recovered orReversed Write-off Other
Allowance
for
doubtful
accounts 176512931 13108476 16050199 1077702 172493506
for
accounts
receivable
Total 176512931 13108476 16050199 1077702 172493506
(4) Details of Accounts Receivable Actually Written Off During the Period
Item Amount Written Off
Accounts Receivable Actually Written Off 1077702
(5) Top Five Accounts Receivable and Contract Assets by Debtor at the End of the Period
Ending Balance
End-of-Period End-of-Period Percentage of Total of Allowance for
Company Name Balance of
End-of-period Balance of Accounts End-of-Period
Accounts balance of Receivable and Balance of Accounts
Doubtful Accounts
Receivable contract Receivable and
and Impairment
assets Contract Assets Contract Assets Reserve forContract Assets
Total of the top 5
accounts
receivable by 667302047 667302047 33.79% 5853011
balance
Total 667302047 667302047 33.79% 5853011
5. Accounts Receivable Financing
(1) Classification of Accounts Receivable Financing
Item Ending Balance Beginning Balance
notes receivable 533418878 798603111
Total 533418878 798603111
6. Other receivables
Item Ending Balance Beginning Balance
Other Receivables 54386121 165872735
Total 54386121 165872735
(1) Other receivables
1) Classification of Other Receivables by Nature
57CSG Holding Co. Ltd.
Notes to the Financial Statements
2025 (Unless otherwise stated all amounts are in RMB)
Nature of Receivables Closing Book Balance Opening Balance
Receivables from Talent Fund (Note) 171000000
Advances 31323273 31056939
Prepaid Purchases 10366164 10366164
Deposits 12767829 9026138
Contingency fund loans 743145 567991
Other 11465456 8591213
Total 66665867 230608445
Note: These funds constitute government subsidies granted to the Group. The Company entrusted its
wholly-owned subsidiary Yichang CSG Silicon Materials Co. Ltd. to receive these funds. The Yichang
High-Tech Zone Administrative Committee disbursed the full amount of these funds to Yichang CSG
Silicon Materials Co. Ltd. in 2014. Upon receipt of the funds Yichang CSG Silicon Materials Co. Ltd.transferred the full amount to Yichang Hongtai Real Estate Co. Ltd. without obtaining proper approval
from the Company’s Board of Directors or other competent authorities at the time.Between February 21
2014 and April 28 2014 Yichang CSG Silicon Materials Co. Ltd. received the aforementioned funds
and transferred the full amount to Yichang Hongtai Real Estate Co. Ltd.On December 15 2021 the Company filed a tort claim for damages against Zeng Nan and others as
well as Yichang Hongtai Real Estate Co. Ltd. The Shenzhen Intermediate Peoples Court formally
accepted the case on January 28 2022. The first-instance trial for this case was concluded at the
Shenzhen Intermediate Peoples Court on June 21 2022.On June 4 2024 the Company received the
first-instance “Civil Judgment” issued by the Shenzhen Intermediate Peoples Court which dismissed all
of the Company’s claims.In June 2024 the Company filed an appeal with the Guangdong Higher
Peoples Court. The second-instance trial was held at the Guangdong Higher Peoples Court onSeptember 12 2024. On December 3 2025 the Company received the second-instance “CivilJudgment” issued by the Guangdong Higher Peoples Court which dismissed the appeal and upheld the
original judgment.In accordance with the principle of prudence the Company has written off the entire
carrying amount of the aforementioned other receivables RMB 171 million for the current fiscal year
fully reversed the corresponding deferred income of RMB 171 million and simultaneously reversed the
allowance for doubtful accounts of RMB 51.3 million previously recognized on an individual basis.
2) Disclosure by Age
Age Closing Balance Opening Balance
Within 1 year (including 1 year) 23652003 13434205
1 to 2 years 2419484 4846886
2 to 3 years 1576040 1357202
3 to 4 years 41002 14817275
4 to 5 years 14701615 594602
5+ years 24275723 195558275
Total 66665867 230608445
3) Disclosure by bad debt provision method
58CSG Holding Co. Ltd.
Notes to the Financial Statements
2025 (Unless otherwise stated all amounts are in RMB)
Balance at end of period
Category Carrying amount allowance for doubtful accounts
Carrying amount
Amount Percentage Amount AllowanceRatio
Allowance for doubtful
accounts on an individual 11425269 17% 11425269 100%
basis
Allowance for doubtful
accounts by group 55240598 83% 854477 2% 54386121
Of which:
Non-affiliated portfolio 55240598 83% 854477 2% 54386121
Total 66665867 100% 12279746 18% 54386121
Continued
Beginning balance
Category Carrying Balance allowance for doubtful accounts
Carrying Value
Amount Ratio Amount AllowanceRatio
Allowance for doubtful
accounts on an individual 183523841 80% 63823841 35% 119700000
basis
Allowance for doubtful
accounts by portfolio 47084604 20% 911869 2% 46172735
Of which:
Non-affiliated portfolio 47084604 20% 911869 2% 46172735
Total 230608445 100% 64735710 28% 165872735
Allowance for doubtful accounts calculated using the general expected credit loss model:
Stage 1 Stage 2 Stage 3
Expected credit
allowance for doubtful accounts Expected credit losses over the entire
Expected credit losses over
losses over the next life of the loan (no the entire life of the loan (with
12 months credit impairment credit impairment losses
Total
losses) recognized)
Balance as of January 1 2025 911869 63823841 64735710
Balance as of January 1 2025
for the current period
——Transferred to Phase 2
——Transferred to Phase 3
——Reversed to Phase 2
——Reversed to Phase 1
Accrual for the current period -57087 36000 -21087
Reversal for the period 51333817 51333817
Write-offs for the period
Write-offs for the period 305 1100755 1101060
59CSG Holding Co. Ltd.
Notes to the Financial Statements
2025 (Unless otherwise stated all amounts are in RMB)
allowance for doubtful accounts Stage 1 Stage 2 Stage 3
Other Changes
Balance as of December 31
20258544771142526912279746
4) Details of the allowance for doubtful accounts made recovered or reversed during the current period
Allowance for doubtful accounts for the current period:
Changes During the Period
Category BeginningBalance Provision Recovered or Write-off or
Ending Balance
Reversed cancellation Other
Allowance for
doubtful
accounts—other 64735710 -21087 51333817 1101060 12279746
receivables
Total 64735710 -21087 51333817 1101060 12279746
Reversal or recovery of allowance for doubtful accounts during the period
Entity Name Reason for
Basis for the Reversal or
Reversal Method of Recovery Original Allowance Recoveryfor Doubtful Accounts Amount
Offset against other
receivables and deferred
Yichang Hongtai Real Estate Based on the income to reverse the Based on the
Co. Ltd. outcome of litigation previously recognized progress of the 51300000
allowance for doubtful litigation
accounts
5) Details of other receivables actually written off during the current period
Item Amount Written Off
Other Receivables 1101060
6) Top Five Other Receivables by Debtor at the End of the Period
Percentage of
Entity Name Nature of the Ending Balance Aging Total Other
Ending Balance
Amount Receivables at End of Allowance for
of Period Doubtful Accounts
Government
Agency A Advances Paid 14000000 4–5 years 21% 280000
Government
Agency B Advance payments 11256004 5 years or more 17% 225120
Company C Prepaid accounts 10366164 5 years or more 16% 10366164
Company D Margin 1800000 5 years or more 3% 36000
Company E Margin etc. 1014672 1–2 years 2% 20293
Total 38436840 59% 10927577
7. Prepayments
60CSG Holding Co. Ltd.
Notes to the Financial Statements
2025 (Unless otherwise stated all amounts are in RMB)
(1) Prepayments by Age
Ending Balance Beginning Balance
Age
Amount Percentage Amount Percentage
Within 1 year 133269406 99% 119835994 98%
1 to 2 years 1402146 1% 1856074 2%
2 to 3 years 98476 14430
3+ years 1966 1766
Total 134771994 100% 121708264 100%
(2) Top Five Prepayments by Payee at the End of the Period
Item Balance Percentage of Total Prepayments
Total of the Top Five Prepayments by
Balance 87432091 65%
8. Inventories
(1) Classification of Inventories
Ending Balance Beginning Balance
Item provision for provision for
Book Value inventory Carrying Book balance inventory Carrying
write-down amount write-down amount
Raw
Materials 680956325 72824242 608132083 552653727 46114817 506538910
Work in
progress 31995311 31995311 36536670 36536670
Inventory 1281629525 32037860 1249591665 1007594584 51140704 956453880
Consumables 79695549 265053 79430496 88481788 183220 88298568
Total 2074276710 105127155 1969149555 1685266769 97438741 1587828028
(2) Provision for inventory write-downs and impairment of contract costs
Beginning Increase for the Period Decrease for the PeriodItem Balance Ending BalanceAccrual Other Reversal orwrite-off Other
Raw
materials 46114817 29688930 2979505 72824242
Inventory 51140704 55783044 74885888 32037860
Consumables 183220 607102 525269 265053
Total 97438741 86079076 78390662 105127155
9. Assets Held for Sale
Balance at end of period Balance at the end of the previous year
Item Carrying Impairment Carrying Carrying Impairment Carrying
Amount Allowance amount amount allowance amount
61CSG Holding Co. Ltd.
Notes to the Financial Statements
2025 (Unless otherwise stated all amounts are in RMB)
Balance at end of period Balance at the end of the previous year
Item Carrying Impairment Carrying Carrying Impairment Carrying
Amount Allowance amount amount allowance amount
(1) Non-current assets
held for sale 5262859 5262859
Total 5262859 5262859
As of the end of the period the status of assets held for sale:
Item Carrying amount at Fair Value at End Estimated sellingthe end of the period of Period costs Timing
Certain long-term assets of
the subsidiary to be 5262859
disposed of
Total 5262859
On December 25 2025 Yichang Silicon Materials entered into a "Factory Building and Land Sale
Contract" with Ningshi Yichang Material Technology Co. Ltd. (hereinafter referred to as "Yichang
Ningshi") and Shenzhen Ningshi Material Technology Co. Ltd. (hereinafter referred to as "Shenzhen
Ningshi"). Under the contract Yichang Silicon Materials sold a portion of its factory buildings and land to
Yichang Ningshi with Shenzhen Ningshi providing a guarantee. As the transfer of ownership is
expected to be completed within the next year the factory buildings and land intended for sale have
been classified as held for sale.
10. Other Current Assets
Item Ending Balance Beginning Balance
VAT to be Deducted 414086574 391080026
Advance Corporate Income Tax 3481337 57078630
Input tax pending certification 56658842 27458400
Total 474226753 475617056
11. Investment Properties
(1) Investment properties measured at fair value
Item Buildings structures and land userights Total
I. Opening Balance 293712453 293712453
II. Changes During the Period -7567066 -7567066
Add: Purchases
Transfer from inventories/fixed
assets/construction in progress 4379800 4379800
Other increases 6234198 6234198
Less: Disposals
Other Outflows 9136007 9136007
Change in fair value -9045057 -9045057
Other
62CSG Holding Co. Ltd.
Notes to the Financial Statements
2025 (Unless otherwise stated all amounts are in RMB)
Item Buildings structures and land userights Total
III. Ending Balance 286145387 286145387
12. Fixed Assets
Item Ending Balance Beginning Balance
fixed assets 13897777933 13166391449
Total 13897777933 13166391449
(1) Fixed Assets
Item Buildings and Machinery and Vehicles and OtherStructures Equipment Assets Total
I. Book Value:
1. Beginning Balance 7049609664 15871544555 404381198 23325535417
2. Additions for the Period 646364004 1470483990 24518278 2141366272
(1) Purchases 22155458 9438951 31594409
(2) Transfer from construction in
progress 646364004 1434569371 14891627 2095825002
(3) Other increases 13759161 187700 13946861
3. Decreases for the period 12220833 1063195681 8334737 1083751251
(1) Disposal or Scrap 343533 563678365 5115221 569137119
(2) Transferred to construction
in progress 495455419 495455419
(3) Other decreases 11877300 4061897 3219516 19158713
4. Ending balance 7683752835 16278832864 420564739 24383150438
II. Accumulated Depreciation
1. Beginning Balance 1628365539 6643333962 308589547 8580289048
2. Increase for the Period 243918881 932605842 45446129 1221970852
(1) Accrued 243918881 919667675 45446129 1209032685
(2) Other increases 12938167 12938167
3. Decreases for the period 4962019 570604201 5915508 581481728
(1) Disposal or Scrap 143890 191871725 5009449 197025064
(2) Transferred to construction
in progress 378196682 378196682
(3) Other decreases 4818129 535794 906059 6259982
4. Ending balance 1867322401 7005335603 348120168 9220778172
III. Allowance for Impairment
1. Beginning Balance 151504708 1426428385 921827 1578854920
2. Increase for the Period 63270491 55187 63325678
(1) Accrued 58010882 32476 58043358
(2) Transfer from construction in
progress 5259609 22711 5282320
63CSG Holding Co. Ltd.
Notes to the Financial Statements
2025 (Unless otherwise stated all amounts are in RMB)
Item Buildings and Machinery and Vehicles and OtherStructures Equipment Assets Total
3. Decrease for the period 377506023 80242 377586265
(1) Disposal or retirement 357629563 80242 357709805
(2) Other decreases 19876460 19876460
4. Ending balance 151504708 1112192853 896772 1264594333
IV. Book Value
1. Closing Book Value 5664925726 8161304408 71547799 13897777933
2. Opening Book Value 5269739417 7801782208 94869824 13166391449
(2) Fixed Assets for Which Property Certificates Have Not Been Obtained
Item Book Value Reasons for Not Having Obtained Property Certificates
Documents have been submitted but the process has
Buildings and Structures 1656787597 not yet been completed or the relevant land use rights
certificate has not yet been obtained.
(3) Impairment Testing of Fixed Assets
Recoverable amount is determined as the net amount of fair value less costs to sell
* Dongguan Solar-related assets:
Item Carrying recoverable Impairment
Method of determining
fair value and disposal Key Basis for determining keyAmount amount Loss costs parameters parameters
Fair Value: Market price: Determined
Determined using the based on the buyer’s offer
fixed market price/cost
Market for the asset. Disposal
12635514 2706170 9929344 method. Disposal price costs: Refer to legal feesassets Costs: Includes costs disposal relevant taxes and direct
associated with the costs costs incurred to bring the
disposal of the asset asset to a saleablecondition.Total 12635514 2706170 9929344
Recoverable amount is determined based on the present value of estimated future cash flows
64CSG Holding Co. Ltd.
Notes to the Financial Statements
2025 (Unless otherwise stated all amounts are in RMB)
* Assets related to Yichang Silicon Materials:
Key
Item Carrying Amount recoverable
Key parameters Basis for determining key
amount Impairment Loss Forecast Period (Years) for the forecast
parameters
for the stable parameters for the stableperiod period period
Future cash flows:
Determined based on
management’s annual
Asset groups business plan and
comprising fixed Future Cash expectations regarding
assets intangible Based on the remaining useful Future cash flows Flows future market
assets and 1258140300 1106805400 151334900 lives of the main production line discount rate Discount developments. Discount
construction in equipment. Rate rate: A rate of return that
progress reflects the time value ofmoney in the current
market and the specific
risks associated with the
relevant asset group.Total 1258140300 1106805400 151334900
13. Construction in Progress
Item Ending Balance Beginning Balance
construction in progress 4420551577 5350375132
Total 4420551577 5350375132
(1) Status of Construction in Progress
Ending Balance Opening Balance
Item Carrying Impairment Carrying Carrying Impairment Carrying
Amount Reserve amount amount allowance value
New 50000-ton-per-year High-Purity Crystalline Silicon Project in
Haixi Prefecture Qinghai Province 3520172785 3520172785 3644745822 3644745822
65CSG Holding Co. Ltd.
Notes to the Financial Statements
2025 (Unless otherwise stated all amounts are in RMB)
Item Ending Balance Opening Balance
Yichang South Glass Polysilicon Technical Upgrade Project 678917418 318942237 359975181 644181303 217878698 426302605
Beihai Photovoltaic Green Energy Industrial Park (Phase I) Project 14962741 14962741 373394252 373394252
Qingyuan South Glass Phase I Upgrade and Technical Renovation
Project 235404361 130014062 105390299 233127020 126553412 106573608
Xianning Energy-Saving Production Line Renovation and Expansion
Project 27766665 27766665 4226026 4226026
Dongguan Photovoltaic Building B 450 MW PERC Cell Technology
Upgrade Project 186866743 184998076 1868667
Wujiang Float Glass (650TD) Photovoltaic Calendering Line
Technical Upgrade Project 169371968 169371968
Chengdu South Glass 900T/D Line Cold Repair and Technical
Upgrade Project 150255439 150255439
Other Projects 413174308 20890402 392283906 477462133 3825388 473636745
Total 4890398278 469846701 4420551577 5883630706 533255574 5350375132
66CSG Holding Co. Ltd.
Notes to the Financial Statements
2025 (Unless otherwise stated all amounts are in RMB)
(2) Changes in Significant Projects in the Stage of Construction in Progress During the Current Period
Percentage Of which:
Increase Amount
of Cumulative Interest Interest
Project Name Budgeted Opening for the Transferred to Ending
Cumulative
Amount Balance Fixed Assets Balance Project
Project Amount of capitalized Capitalization Source
Period Expenditures Progress Capitalized for the Rate for the of Fundsfor the Period Relative to Interest current Period
Budget period
New
50000-ton-per-year
High-Purity Equity
Crystalline Silicon 4498192210 3644745822 362179930 486752967 3520172785 90% 90% 106450782 55810415 3.65% and bank
Project in Haixi loans
Prefecture Qinghai
Province
Beihai Photovoltaic Equity
Green Energy and loans
Industrial Park 4942051800 373394252 177178868 535610379 14962741 37% 37% 19546235 3786113 2.52% from
(Phase I) Project financialinstitutions
Total 9440244010 4018140074 539358798 1022363346 3535135526 125997017 59596528
67CSG Holding Co. Ltd.
Notes to the Financial Statements
2025 (Unless otherwise stated all amounts are in RMB)
(3) Provision for Impairment of Construction in Progress for the Current Period
Item Beginning Increase for the Decreases for theBalance Period Period Ending Balance
Reason for
Accrual
Qingyuan South
Glass Phase I
Upgrade and 126553412 3463231 2581 130014062
Technical
Renovation Project
Dongguan
Photovoltaic
Building B 450 MW
PERC Cell 184998076 184998076
Technology
Upgrade Project
Yichang South
Glass Polysilicon
Technical Upgrade 217878698 101063539 318942237
Project
Other Projects 3825388 20633562 3568548 20890402
Total 533255574 125160332 188569205 469846701
(4) Impairment Testing of Construction in Progress
Recoverable amount is determined based on the present value of estimated future cash flows
* For details on the impairment testing of assets related to Yichang Silicon Materials please refer to
Note 5 12 (3) “Explanation of Impairment Testing of Fixed Assets”
* Assets related to Qingyuan New Materials:
Key Key Basis for
Item Carrying recoverable Impairment
Length of parameters parameters
the forecast for the for the determining keyAmount amount Loss period forecast stable parameters for the
period period stable period
Future cash flows:
Determined based
on management’s
annual business plan
Asset Based on and expectations
groups the
comprising remaining Future
regarding future
Future Cash marketfixed assets
intangible 204033369 200570138 3463231
useful lives
of the main cash flows Flows
developments.discount rate Discount Discount rate: A rateassets and production of return that reflects
construction line Rate the time value of
in progress equipment. money in the current
market and the
specific risks
associated with the
relevant asset group.Total 204033369 200570138 3463231
68CSG Holding Co. Ltd.
Notes to the Financial Statements
2025 (Unless otherwise stated all amounts are in RMB)
14. Right-of-use assets
(1) Right-of-use assets
Item Leased Land Leased Buildings Other Leases Total
I. Book Value
1. Beginning Balance 56927645 14012186 1381893 72321724
2. Additions for the Period 900838 1144668 4986604 7032110
3. Decrease for the period 302878 1381894 1684772
4. Ending balance 57828483 14853976 4986603 77669062
II. Accumulated Depreciation
1. Beginning Balance 4929196 1833931 753760 7516887
2. Additions for the Period 3432565 3025457 1101696 7559718
(1) Accrued 3432565 3025457 1101696 7559718
3. Decrease for the period 302878 1381894 1684772
(1) Other 302878 1381894 1684772
4. Ending balance 8361761 4556510 473562 13391833
III. Allowance for Impairment
IV. Carrying Amount
1. Carrying Value at End of Period 49466722 10297466 4513041 64277229
2. Beginning Book Value 51998449 12178255 628133 64804837
15. Intangible Assets
(1) Intangible Assets
Item Land Use Patent Rights andRights Proprietary Technology Mining Rights Other Total
I. Book Value
1. Beginning Balance 1480861000 563753185 1091671546 82211586 3218497317
2. Increase for the
period 9856 21630211 7427003 29067070
(1) Purchases 3395711 7427003 10822714
(2) Other 9856 18234500 18244356
3. Decrease for the
period 997014 14957 1011971
(1) Disposal 14957 14957
(2) Other 997014 997014
4. Ending balance 1479873842 563753185 1113301757 89623632 3246552416
II. Accumulated
Amortization
1. Beginning balance 323924132 297207127 117798289 60979526 799909074
2. Increase for the
period 33115034 32092821 78638733 6438835 150285423
69CSG Holding Co. Ltd.
Notes to the Financial Statements
2025 (Unless otherwise stated all amounts are in RMB)
Item Land Use Patent Rights andRights Proprietary Technology Mining Rights Other Total
(1) Accrued 33115034 32092821 78638733 6438835 150285423
3. Decrease for the
period 381986 14957 396943
(1) Disposal 14957 14957
(2) Other 381986 381986
4. Ending balance 356657180 329299948 196437022 67403404 949797554
III. Allowance for
Impairment
1. Beginning Balance 57299776 13374 57313150
2. Additions for the
Period 1400245 1400245
(1) Accrued 1400245 1400245
3. Decrease for the
period
4. Ending balance 58700021 13374 58713395
IV. Book Value
1. Closing Book
Value 1123216662 175753216 916864735 22206854 2238041467
2. Opening book
value 1156936868 209246282 973873257 21218686 2361275093
(2) Status of Land Use Rights for Which Property Certificates Have Not Been Obtained
Item Book Value Reasons for Failure to Obtain Property Certificates
The Company’s management believes that there are no
Land Use Rights 3883432 material legal obstacles to obtaining the relevant land use rightcertificates nor will this have a material adverse effect on the
Group’s operations.
16. Goodwill
(1) Carrying amount of goodwill
Name of investee or
transaction giving rise Opening balance Increases for the Decreases for the
to goodwill period Period
Ending balance
Tianjin Energy
Conservation Company 3039946 3039946
Xianning
Optoelectronics 4857406 4857406
Company
Shenzhen Display
Company 389494804 389494804
Guangdong Licheng
Company 696000 696000
Total 398088156 398088156
(2) Provision for impairment of goodwill
70CSG Holding Co. Ltd.
Notes to the Financial Statements
2025 (Unless otherwise stated all amounts are in RMB)
Name of investee or
transaction giving rise Beginning balance Increases for the Decreases for the
to goodwill Period Period
Ending Balance
Shenzhen Display
Company 389494804 389494804
Xianning
Optoelectronics 4857406 4857406
Company
Guangdong Licheng
Company 696000 696000
Total 389494804 5553406 395048210
17. Long-term prepaid expenses
Item Beginning Increase for the Amortization forBalance Period the Period Other Decreases Ending Balance
Prepaid Expenses 71254985 11542414 14152886 68644513
Total 71254985 11542414 14152886 68644513
18. Deferred Tax Assets/Deferred Tax Liabilities
(1) Unoffset deferred tax assets
Balance at end of period Beginning Balance
Item Deductible Temporary Deductible temporary
Differences deferred tax assets differences deferred tax assets
Provision for
impairment of 839388016 126353744 909339984 136694548
assets
Tax-deductible
losses 1508798676 254703877 1040260054 177300541
Government grants 195036329 31338741 230038184 34948104
Accrued expenses 10211362 1531704 8572883 1285932
Depreciation of
fixed assets and 119021783 19050717 142759612 22098978
other
Total 2672456166 432978783 2330970717 372328103
(2) Unoffset deferred tax liabilities
Balance at end of period Opening balance
Item Taxable temporary
differences deferred tax liabilities
Taxable temporary
differences deferred tax liabilities
Depreciation of
fixed assets 432135880 65072669 493147552 74317475
investment
properties 360690653 90172663 368745675 92186419
Total 792826533 155245332 861893227 166503894
(3) Deferred tax assets or liabilities presented on a net basis
71CSG Holding Co. Ltd.
Notes to the Financial Statements
2025 (Unless otherwise stated all amounts are in RMB)
Net amount of Closing balance of Opening offsetting Opening balance of
Item deferred tax assetsand liabilities at the deferred tax assets or amount of deferred tax
deferred tax assets or
liabilities after
end of the period liabilities after offsetting assets and liabilities offsetting
deferred tax assets 64742133 368236650 62333037 309995066
deferred tax liabilities 64742133 90503199 62333037 104170857
(4) Breakdown of Unrecognized Deferred Tax Assets
Item Ending Balance Beginning Balance
Deductible temporary differences 699815573 1093221903
Tax loss carryforwards 889564368 430583379
Total 1589379941 1523805282
(5) Unrecognized deferred tax assets arising from tax loss carryforwards will expire in the following
years
Year Balance at end of period Opening Balance Remarks
2025191372556
20268873386388733863
20275869823358698233
202849615474961547
20298681718086817180
2030650353545
Total 889564368 430583379
19. Other Non-Current Assets
Ending Balance Beginning Balance
Item Carrying Impairment Carrying Carrying Impairment Carrying
Amount Reserve amount amount allowance value
Prepaid
Construction and 126386549 126386549 92818456 92818456
Equipment Costs
Prepaid land
transfer fees 6510000 6510000 6510000 6510000
Large-Denomination
Certificates of 60000000 60000000
Deposit
Total 192896549 192896549 99328456 99328456
20. Assets with Restricted Ownership or Right-of-Use
End of Period
Item
Carrying amount Carrying Amount Type of Restriction RestrictionStatus
72CSG Holding Co. Ltd.
Notes to the Financial Statements
2025 (Unless otherwise stated all amounts are in RMB)
Item End of Period
Restricted due to
Cash and Cash
Equivalents 136004824 136004824
margin Cash and cash
requirements equivalents
freezes etc.notes receivable 734789756 734789756 Restricted due topledges notes receivable
inventories 50000000 50000000 Restricted due tofreeze inventories
construction in 939958261 939958261 Restricted finance construction inprogress leases progress
Total 1860752841 1860752841
Continued
Item Beginning
Book Balance Carrying Value Restriction Type RestrictionStatus
Cash and Cash 53654096 53654096 Restricted due to margin Cash and cashEquivalents freezing etc. equivalents
notes receivable 871417785 871417785 Restricted due to pledges notes receivable
fixed assets 411546518 96468240 Restricted finance leases fixed assets
construction in
progress 618442257 618442257 Restricted finance leases
construction in
progress
Total 1955060656 1639982378
21. Short-term borrowings
(1) Classification of Short-Term Borrowings
Item Ending Balance Beginning Balance
Secured Loans 396418363 510679484
Unsecured loans 24500000 39000000
Discounted bills 437729966 313341815
Super-short-term financing notes 300000000 300000000
Total 1158648329 1163021299
22. Notes Payable
Type Ending Balance Beginning Balance
Commercial acceptances 342035440 295136551
Banker’s acceptances 2084167324 1861933756
Supply chain finance bills 131509887 87343448
Total 2557712651 2244413755
23. Accounts Payable
(1) Presentation of Accounts Payable
73CSG Holding Co. Ltd.
Notes to the Financial Statements
2025 (Unless otherwise stated all amounts are in RMB)
Item Ending Balance Beginning Balance
Accounts Payable for Materials 1065072111 936163974
Accounts Payable for Equipment 613282161 930083183
Accounts Payable for Construction 775838641 995409551
Freight payable 200777789 172397226
Utility expenses payable 91758503 47104510
Other 23016758 10867353
Total 2769745963 3092025797
(2) Significant accounts payable that are more than one year past due or overdue
Item Balance at end of period Reason for non-repayment orcarryover
Construction and equipment payments Not yet settled because the final
etc. 968012028 accounting for the relevant projects hasnot been completed.Total 968012028
24. Other payables
Item Ending balance Beginning Balance
Interest Payable 13362151 8946479
Dividends Payable 34482724
Other payables 321668864 303870052
Total 369513739 312816531
(1) Interest payable
Item Ending balance Beginning Balance
Interest on long-term borrowings with
interest paid in installments and 8022216 7929612
principal repaid at maturity
Interest payable on short-term
borrowings 5339935 1016867
Total 13362151 8946479
(2) Dividends Payable
Item Ending Balance Beginning Balance
Dividends Payable to Minority
Shareholders 34482724
Total 34482724
(3) Other payables
1) Other Payables by Nature
Item Ending Balance Beginning Balance
74CSG Holding Co. Ltd.
Notes to the Financial Statements
2025 (Unless otherwise stated all amounts are in RMB)
Item Ending Balance Beginning Balance
Deposits and guarantees received 157634269 200015615
Accrued operating cost (i) 70850325 62190968
Accrued service fees 7626829 7240931
Receivables collected on behalf of
others 25866213 7913094
Amounts Payable to Minority
Shareholders 40967489 10800000
Other 18723739 15709444
Total 321668864 303870052
(i) This item primarily includes expenses that have been incurred but for which invoices had not yet
been received as of the end of the period including utility charges professional service fees and travel
expenses.
25. Contract Liabilities
Item Balance at End of Period Beginning Balance
contract liabilities 369377265 354215784
Total 369377265 354215784
26. Employee Compensation Payable
(1) Presentation of Employee Compensation Payable
Item Beginning Balance Increases for the Decreases for thePeriod Period Ending Balance
I. Short-Term
Compensation 340816562 1814088711 1845188357 309716916
II. Post-Employment
Benefits—Defined 190124935 190124935
Contribution Plan
III. Severance Benefits 6952904 33922969 20650811 20225062
Total 347769466 2038136615 2055964103 329941978
(2) Short-term compensation breakdown
Item Beginning Balance Increases for the Decreases for thePeriod Period Ending Balance
1. Wages Bonuses
Allowances and 313268258 1657234003 1691895457 278606804
Subsidies
2. Social insurance
premiums 83105278 83105278
Of which: Medical
insurance premiums 71532210 71532210
Workers' compensation
insurance premiums 10155623 10155623
Maternity insurance
premiums 1417445 1417445
3. Housing Provident 1181170 53045562 53510032 716700
75CSG Holding Co. Ltd.
Notes to the Financial Statements
2025 (Unless otherwise stated all amounts are in RMB)
Item Beginning Balance Increases for the Decreases for thePeriod Period Ending Balance
Fund
4. Trade Union Funds
and Employee 26367134 20703868 16677590 30393412
Education Funds
Total 340816562 1814088711 1845188357 309716916
(3) Schedule of Provisions
Item Beginning Balance Increases for the Decreases for thePeriod Period Ending Balance
1. Basic Pension
Insurance 182498713 182498713
2. Unemployment
Insurance 7626222 7626222
Total 190124935 190124935
27. Taxes Payable
Item Ending Balance Beginning Balance
Value-Added Tax 32598517 25325222
Corporate Income Tax 14251334 24126663
Individual Income Tax 4952943 5589497
Urban Maintenance and Construction
Tax 1601704 1398523
Education Surcharge 1367782 1150913
Property Tax 11179665 8439364
Environmental Protection Tax 1183032 1331521
Other 6677625 6326659
Total 73812602 73688362
28. Non-current liabilities due within one year
Item Balance at end of period Beginning Balance
Long-term borrowings due within one
year 1678481868 2081081249
Long-term payables due within one year 199423536 84003271
Lease liabilities due within one year 3922656 3772437
Total 1881828060 2168856957
29. Other Current Liabilities
Item Ending Balance Beginning Balance
Input VAT to be transferred 40910486 40029672
Bills not meeting the criteria for
derecognition 279706391 178499661
Total 320616877 218529333
76CSG Holding Co. Ltd.
Notes to the Financial Statements
2025 (Unless otherwise stated all amounts are in RMB)
30. Long-term borrowings
(1) Classification of Long-Term Borrowings
Item Ending Balance Beginning Balance
Secured Loans 5487134015 6020234621
Unsecured loans 3074210000 2212455100
Subtotal 8561344015 8232689721
Less: Long-term borrowings due within
one year 1678481868 2081081249
Total 6882862147 6151608472
31. Lease Liabilities
Item Ending Balance Beginning Balance
Lease Liabilities 26980539 25423044
Less: Lease liabilities due within one
year 3922656 3772437
Total 23057883 21650607
32. Long-term payables
Item Ending Balance Beginning Balance
Long-term payables 594270580 464617473
Total 594270580 464617473
(1) Long-term payables disclosed by nature
Item Ending balance Beginning Balance
Lease Payables 793694116 548620744
Less: Long-term payables due within
one year 199423536 84003271
Total 594270580 464617473
33. Provisions
Item Ending Balance Opening Balance Reason for Recognition
Pending Litigation 8615460 915847
Asset retirement obligations 18763409 12221373 Estimated mine reclamationcosts
Total 27378869 13137220
34. Deferred Income
Item Beginning Increases for Decreases for Other decreases EndingBalance the Period the Period for the period Balance Source
Government
grants 487252038 26290800 39025612 173446115 301071111
Total 487252038 26290800 39025612 173446115 301071111
77CSG Holding Co. Ltd.
Notes to the Financial Statements
2025 (Unless otherwise stated all amounts are in RMB)
For details on other decreases in this period please refer to Note 5.6 “Notes to Other Receivables.”
35. Share Capital
Changes for the Period (Increase/Decrease)
Item BeginningBalance Issuance of Bonus
Conversion Ending Balance
New Shares Shares of capital Other Subtotalreserves
into shares
Total Number
of Shares 3070692107 3070692107
36. Treasury Stock
Item Beginning Balance Increases for the Decreases for thePeriod Period Ending Balance
Treasury Stock 296770027 296770027
Total 296770027 296770027
37. Capital Surplus
Item Beginning Increases for the Decreases for theBalance Period Period Ending Balance
Capital Premium (Share
Capital Premium) 649166589 649166589
Other capital surplus -58427175 -58427175
Total 590739414 590739414
38. Other Comprehensive Income
Current Period Transactions
Profit (Loss) Net
Item Beginning Current Period Less: After Tax incomeBalance Ending BalanceAmount Before Income Tax Attributable to attributable
Income Tax Expense the Parent to minority
Company interest
I. Other
comprehensive
income 159726269 -8895381 13980 -8909361 150816908
reclassified to
profit or loss
Foreign
currency
translation 14983507 -8988580 -8988580 5994927
adjustments
Government
Incentives for
Energy-Saving 2550000 2550000
Technology
Upgrades
investment
properties 142192762 93199 13980 79219 142271981
78CSG Holding Co. Ltd.
Notes to the Financial Statements
2025 (Unless otherwise stated all amounts are in RMB)
Item Beginning Current Period Transactions Ending Balance
Total other Balance
comprehensive 159726269 -8895381 13980 -8909361 150816908
income
39. Special Reserve
Item Beginning Balance Increases for the Decreases for thePeriod Period Ending Balance
Workplace Safety
Expenses 5079628 7946664 6723382 6302910
Total 5079628 7946664 6723382 6302910
40. Surplus Reserve
Item Beginning Balance Increase for the Decreases for thePeriod Period Ending Balance
Legal Surplus
Reserve 1357661614 49200046 1406861660
Discretionary surplus
reserve 127852568 127852568
Total 1485514182 49200046 1534714228
41. Retained Earnings
Item Current Period Previous Period
Retained earnings at the end of the prior
period before adjustments 8224198195 8806549788
Retained earnings at the beginning of
the period after adjustment 8224198195 8806549788
Plus: Net profit attributable to owners of
the parent for the current period 125668291 266772318
Less: Transfer to statutory surplus
reserve 49200046 81450884
Dividends payable on common stock 211673022 767673027
Retained earnings at end of period 8088993418 8224198195
42. Operating Revenue and Operating Cost
Current Period Amount Prior Period Amount
Item
Revenue Cost Revenue Cost
Operating
revenue 13571813382 11647730791 15351552313 12811720914
Other
Operations 147155626 67149309 103834088 36919045
Total 13718969008 11714880100 15455386401 12848639959
(1) Operating Revenue and Operating Costs by Industry (or Product Type)
Current Period Amount Prior Period Amount
Major Product Type (or Industry)
Revenue Cost Revenue Cost
Main Business:
79CSG Holding Co. Ltd.
Notes to the Financial Statements
2025 (Unless otherwise stated all amounts are in RMB)
Current Period Amount Prior Period Amount
Major Product Type (or Industry)
Revenue Cost Revenue Cost
Glass Industry 12149319116 10436726457 13671134232 11313169916
Electronic Glass and Display
Devices Industry 1200226669 1019932750 1391322432 1189561202
Solar and Other Industries 406706232 378525730 548058756 572472166
Unclassified Industry Types 3015511 - 4519263
Inter-segment eliminations -187454146 -187454146 -263482370 -263482370
Subtotal 13571813382 11647730791 15351552313 12811720914
Other operations:
Sales of raw materials and other
items 147155626 67149309 103834088 36919045
Subtotal 147155626 67149309 103834088 36919045
Total 13718969008 11714880100 15455386401 12848639959
(2) Operating Revenue and Operating Cost by Region
Major Operating Current Period Amount Amount for the Previous Period
Regions Revenue Cost Revenue Cost
Mainland China 12128781752 10416823308 14255356141 11855024119
Overseas 1590187256 1298056792 1200030260 993615840
Subtotal 13718969008 11714880100 15455386401 12848639959
80CSG Holding Co. Ltd.
Notes to the Financial Statements
2025 (Unless otherwise stated all amounts are in RMB)
(3) Revenue from core business operations and cost of core business operations by date of goods transfer
Current Period Amount
Item Glass Industry Electronic Glass and Display UnallocatedDevices Industry Solar and Other Industries Industry Type Inter-segment eliminations
Revenue Cost Revenue Cost Revenue Cost Revenue Cost Revenue Cost
Operating
Of which:
Recognized at a
specific point in 12149319116 10436726457 1200226669 1019932750 406706232 378525730 3015511 - -187454146 -187454146
time
Total 12149319116 10436726457 1200226669 1019932750 406706232 378525730 3015511 - -187454146 -187454146
81CSG Holding Co. Ltd.
Notes to the Financial Statements
2025 (Unless otherwise stated all amounts are in RMB)
43. Taxes and Surcharges
Item Current Period Amount Previous Period Amount
Property Tax 54688800 50594269
Urban Maintenance and Construction
Tax 22901209 21781715
Education Surcharge 19427786 18446019
Land Use Tax 20143873 24601056
Stamp Tax 9289575 9553533
Environmental Protection Tax 4782790 5673578
Other 15268076 7321105
Total 146502109 137971275
44. General and Administrative Expenses
Item Current Period Amount Prior Period Amount
Employee Compensation 410894980 413885190
Depreciation and Amortization 176016765 209095206
Office expenses 28022520 32571052
Union dues 19718661 23248791
Entertainment and hospitality expenses 15585343 19390764
Consulting fees 17931720 19853200
Cafeteria expenses 9868097 11110572
Travel expenses 10013106 10625851
Utilities 6985382 8026076
Vehicle usage fees 4052741 4879841
Rental expenses 1294118 1143636
Other 39973838 37191654
Total 740357271 791021833
45. Selling expenses
Item Current Period Amount Prior Period Amount
Employee Compensation 205866079 217698108
Entertainment and Hospitality Expenses 17678206 21955401
Travel expenses 12871714 14159772
Sample costs 9525527 5569396
Rental fees 6914758 9854040
Depreciation 2970493 1614884
Advertising expenses 2634339 2153306
Transportation expenses 2631270 2548728
82CSG Holding Co. Ltd.
Notes to the Financial Statements
2025 (Unless otherwise stated all amounts are in RMB)
Item Current Period Amount Prior Period Amount
Office expenses 2009017 2897472
Insurance premiums 1443170 1588780
Vehicle usage fees 756766 967835
Other 29590343 8395140
Total 294891682 289402862
46. Research and Development Expenses
Item Current Period Amount Prior Period Amount
Research and development expenses 519332680 611497261
Total 519332680 611497261
47. Financial Expenses
Item Current Period Amount Prior Period Amount
Interest Expense 247130850 240388865
Interest income -40278639 -55326006
Foreign exchange gains and losses 1062479 -8852269
Other 9295186 7754393
Total 217209876 183964983
48. Other income
Source of Other Income Current Period Amount Prior Period Amount
Amortization of Government Grants 39025612 34615832
Tax incentives and rewards 52405395 96754148
Industrial Support Fund 1498020 17051187
Government Incentive Funds 66380707 57941749
Research funding grants 4360855 7006266
Other 6353960 8478892
Total 170024549 221848074
49. Gain on Fair Value Changes
Source of gain on changes in fair value Current period amount Prior period amount
Investment properties measured at fair
value -9045057 -491578
Total -9045057 -491578
50. Investment income
Item Current Period Amount Prior Period Amount
Investment income from financial assets
held for trading 5671986 416636
Gain on debt restructuring 2073495 6238075
83CSG Holding Co. Ltd.
Notes to the Financial Statements
2025 (Unless otherwise stated all amounts are in RMB)
Item Current Period Amount Prior Period Amount
Interest on discounted notes -19002010 -9182820
Income from time deposits etc. 166431 924109
Total -11090098 -1604000
51. Credit impairment losses (losses are reported with a "-" sign)
Item Current Period Amount Prior Period Amount
Bad debt loss on notes receivable -1424545 852654
Bad debt loss on accounts receivable 2941723 21524234
Bad debt loss on other receivables 51354904 1778032
Total 52872082 24154920
52. Asset impairment losses (enter loss amounts with a "-" sign)
Item Current Period Amount Prior Period Amount
Loss on inventory write-downs and
impairment of contract costs -86079076 -147120976
Asset impairment losses on fixed assets -58043358 -256805904
Impairment loss on construction in
progress -105283872 -174171999
Asset impairment losses on intangible
assets -1400245 -2983345
Goodwill impairment loss -5553406
Total -256359957 -581082224
53. Gain (Loss) on Disposal of Assets (Losses are indicated with a "-")
Source of Gain on Disposal of Assets Current Period Amount Prior Period Amount
Gain (Loss) on Disposal of Non-Current
Assets (Enter "-" for a loss) 19981685 42232656
54. Non-operating income
Amount Included in
Item Current Period Amount Amount for the PreviousPeriod Non-recurring Income for theCurrent Period
Uncollectible Amounts 42798021 10593402 42798021
Claim proceeds 5257937 1938925 5257937
Gain on disposal of
non-current assets 2482496 1489005 2482496
Insurance claims 1869798 72058 1869798
Other 5975760 5815607 2230565
Total 58384012 19908997 54638817
55. Non-operating expenses
84CSG Holding Co. Ltd.
Notes to the Financial Statements
2025 (Unless otherwise stated all amounts are in RMB)
Item Current Period Amount Amount for the Previous
Amount Included in
Period Non-recurring Profit or Lossfor the Current Period
Loss on Disposal of
Non-Current Assets 1558791 22160548 1558791
Penalty expenses 2366609 575828 2366609
Compensation expenses 2871301 1013847 2871301
Donation expenses 459600 462800 459600
Other 4231138 2735149 4073740
Total 11487439 26948172 11330041
56. Income Tax Expense
(1) Income Tax Expense Statement
Item Current Period Amount Prior Period Amount
Current Period Income Tax Expense 65664150 125152481
Deferred income tax expense -71923222 -81846123
Total -6259072 43306358
(2) Adjustments to Accounting Profit and Income Tax Expense
Item Current Period Amount
Total Profit 99075067
Income Tax Expense Calculated at Statutory/Applicable Tax Rate 19034404
Impact of non-deductible costs expenses and losses 8383277
Impact of utilizing prior-period unrecognized deferred tax assets -843336
Effect of deductible temporary differences or deductible losses for
which deferred tax assets were not recognized in the current period 39435406
Adjustment for the impact of prior-period income taxes 3712372
Effect of tax incentives -75981195
income tax expense -6259072
57. Cash Flow Statement Items
(1) Cash from operating activities
Other cash received from operating activities
Item Current Period Amount Prior Period Amount
Government Grants 116637398 189142655
Interest income 34960054 54681500
Other 42974962 27755176
Total 194572414 271579331
Cash paid for other operating activities
85CSG Holding Co. Ltd.
Notes to the Financial Statements
2025 (Unless otherwise stated all amounts are in RMB)
Item Current Period Amount Prior Period Amount
Operating Deposits and Guarantees 51398907 154507379
Office expenses 42547196 47234629
Cafeteria expenses 43915225 42078234
Entertainment and hospitality expenses 34336128 45392810
Insurance premiums 22486062 13196436
Maintenance expenses 34375538 35860743
Travel expenses 32632784 36278144
Rental expenses 16707876 11266039
Vehicle usage fees 4955222 6562858
Consulting fees 19501104 20715630
Bank fees 6373373 4916361
Other 105966189 102546498
Total 415195604 520555761
(2) Cash from investing activities
Other cash outflows from investing activities
Item Current Period Amount Prior Period Amount
Deposits and guarantees paid 73284281 46621319
Total 73284281 46621319
Cash paid for significant investing activities
Item Current Period Amount Prior Period Amount
Expenditures on construction projects 1023280563 2338449565
Expenditures on Financial Investments 4708224786 555254000
Total 5731505349 2893703565
(3) Cash from financing activities
Other cash received from financing activities
Item Current Period Amount Prior Period Amount
Lease payments received 354424862 458231000
Loans from minority shareholders 20000000
Total 374424862 458231000
Cash paid for other financing activities
Item Current Period Amount Prior Period Amount
Buyback of treasury stock 296770027
86CSG Holding Co. Ltd.
Notes to the Financial Statements
2025 (Unless otherwise stated all amounts are in RMB)
Item Current Period Amount Prior Period Amount
Repayment of lease payments 190398600 111060234
Funding deposits and guarantees 600000
Financing fees 288799 986281
Repayment of minority shareholder
loans 1600000 1200000
Total 489057426 113846515
Changes in Liabilities Arising from Financing Activities
Increases during the period Decreases for the Period
Item Beginning Endingbalance Cash Flow Non-cash Cash Non-cash Balancechanges movements changes
short-term
borrowings 1163021299 1355290927 6223216 1342096759 23790354 1158648329
Long-term
borrowings
(including
long-term 8232689721 4014996072 3686341778 8561344015
borrowings
due within
one year)
Total 9395711020 5370286999 6223216 5028438537 23790354 9719992344
58. Supplementary Information to the Statement of Cash Flows
(1) Supplementary Information to the Statement of Cash Flows
Supplementary Information Current Period Amount Prior Period Amount
1. Reconciliation of Net Profit to Cash
Flows from Operating Activities
net profit 105334139 247600543
Add: Provision for asset impairment 203487875 556927304
Depreciation of fixed assets depletion
of oil and gas assets and depreciation 1209032685 1168318243
of productive biological assets
Depreciation of right-of-use assets 7559718 4347065
Amortization of intangible assets 150285423 146945804
Amortization of deferred expenses 14152886 9224629
Loss (gain) on disposal of fixed assets
intangible assets and other long-term -20905390 -21561113
assets (gain shown with a "?" sign)
Loss (gain) from changes in fair value
(enter gain with a “-” sign) 9045057 491578
Financial expenses (gains are reported
with a "-" sign) 247130850 240388865
Investment loss (gains indicated with a
"?")110900981604000
Decrease (increase shown with a "?"
sign) in deferred tax assets -58241584 -86970035
87CSG Holding Co. Ltd.
Notes to the Financial Statements
2025 (Unless otherwise stated all amounts are in RMB)
Supplementary Information Current Period Amount Prior Period Amount
Increase (decrease; enter with a "?"
sign) in deferred tax liabilities -13681638 5123912
Decrease in inventories (enter "-" for an
increase) -467400603 -144724209
Decrease in operating receivables
(enter increases with a "?" sign) -141905898 286095997
Increase in operating payables
(decreases are indicated with a "?") -116382985 -663594879
Other 7946664 6705945
Net cash flow from operating activities 1146547297 1756923649
2. Net Change in Cash and Cash
Equivalents:
Cash balance at the end of the period 2981170323 3367873386
Less: Beginning cash balance 3367873386 3051261655
Net increase in cash and cash
equivalents -386703063 316611731
(2) Composition of Cash and Cash Equivalents
Item Balance at end of period Beginning Balance
I. Cash 2981170323 3367873386
Of which: Cash on hand 151026
Bank deposits available for immediate
payment 2981011937 3367873386
Other monetary funds available for
immediate payment 7360
II. Cash and Cash Equivalents at the
End of the Period 2981170323 3367873386
(3) Monetary funds other than cash and cash equivalents
Item Current Period Amount Prior Period Amount Reason for exclusion fromcash and cash equivalents
Other monetary funds 136004824 53654096 Restricted cash such assecurity deposits
Other monetary funds 24800000 Maturity withdrawals fromtime deposits
Total 160804824 53654096
59. Foreign Currency Monetary Items
(1) Foreign currency monetary items
Item Foreign Currency Balanceat End of Period Conversion Rate Closing RMB Balance
Cash and cash equivalents 65572248
Of which: U.S. dollars 5568471 7.0288 39139672
Euro 50750 8.2355 417955
HKD 6152996 0.9032 5557386
88CSG Holding Co. Ltd.
Notes to the Financial Statements
2025 (Unless otherwise stated all amounts are in RMB)
Item Foreign Currency Balanceat End of Period Conversion Rate Closing RMB Balance
Japanese Yen 6422500 0.0448 287728
Dirham 10572015 1.9071 20161890
Singapore dollars 710 5.4606 3877
Australian dollars 798 4.6867 3740
accounts receivable 333252360
Of which: U.S. dollars 46138533 7.0288 324298519
Euro 834785 8.2355 6874875
HKD 2301778 0.9032 2078966
accounts payable 19447781
Of which: US dollars 2512221 7.0288 17657897
Euro 78982 8.2355 650459
Japanese yen 22842344 0.0448 1023337
Pounds 11000 9.4346 103781
HKD 13626 0.9032 12307
60. Lease
(1) The Company as Lessee
In 2025 the Group’s lease expenses for short-term leases or leases of low-value assets accounted for
RMB 13159768
Circumstances involving sale-and-leaseback transactions
In 2025 total cash outflows related to sale-and-leaseback transactions amounted to RMB 67126582
VI. Research and Development Expenditures
Item Current period amount Prior Period Amount
Materials 267824661 295364150
Labor 184223164 241042562
Expenses and other 67284855 75090549
Total 519332680 611497261
Of which: Expensed research and
development expenses 519332680 611497261
VII. Changes in the scope of consolidation
1. Changes in the scope of consolidation due to other reasons
(1) On March 31 2025 the Group established CSG VINA COMPANY LIMITED (CSG Vietnam Co.
Ltd.). As of December 31 2025 the Group had not made any capital contributions and the Group holds
100% of its shares;
89CSG Holding Co. Ltd.
Notes to the Financial Statements
2025 (Unless otherwise stated all amounts are in RMB)
(2) On May 23 2025 the Group established CSG MIDDLE EAST FOR GLASS
INDUSTRY-L.L.C-S.P.C (CSG (Middle East) Glass Industry Co. Ltd.). As of December 31 2025 the
Group had not made any capital contributions and the Group held 100% of its shares;
(3) Changshu South Glass New Energy Co. Ltd. and Zhuhai South Glass Commercial Factoring Co.
Ltd. were deregistered in July 2025 and August 2025 respectively and are no longer included in the
scope of consolidation.VIII. Interests in Other Entities
1. Interests in Subsidiaries
(1) Composition of the Corporate Group
Ownership
Name of Registered PrincipalPlace of Place of Nature of Percentage Method ofSubsidiary Capital Business Registration Business Direct Indirect Acquisition
Development
Chengdu South production and
Glass Company 260000000
Chengdu Chengdu
China China sales of various 75% 25%special glass Established
products
Sichuan Energy
Conservation 180000000 Chengdu ChengduChina China Glass Processing 75% 25%
Continuing
Company Division
Tianjin Energy
Conservation 336000000 Tianjin TianjinChina China Glass Processing 75% 25%Company Established
Dongguan
Engineering 270000000 Dongguan Dongguan Glass Processing 22.22%
Company China China 77.78% Established
Manufacture and
Dongguan Solar
Company 480000000
Dongguan Dongguan sale of special
China China glass and solar 75% 25% Established
glass
Manufacturing
Dongguan and sales of
Photovoltaic 516000000 Dongguan Dongguan high-tech green
Company China China battery products
100% Established
and their
components
Yichang Silicon
Materials Yichang Yichang
Manufacture and
1467980000 China China sale of high-purity 75% 25%Company silicon materials Established
Wujiang
Engineering 320000000 Wujiang WujiangChina China Glass Processing 75% 25%Company Established
Hebei South Manufacturing and
Glass Company 48066000 Yongqing Yongqing selling various
(Note 1) China China types of special
75% 25% Established
glass
Manufacture and
Wujiang South Wujiang Wujiang sale of special
Glass Company 565041798 China China glass and solar 100% Established
glass
90CSG Holding Co. Ltd.
Notes to the Financial Statements
2025 (Unless otherwise stated all amounts are in RMB)
Name of Registered Principal Place of Nature of Ownership Method of
Subsidiary Capital Place of Registration Business Percentage Acquisition
CSG Hong Kong
Co. Ltd. (Note 2) 86440000
HBounsginess Hong Investment
Kong China Kong China holding 100% Established
Manufacture and
Xianning Float 235000000 Xianning Xianning sale of specialGlass Company China China glass and solar 75% 25% Established
glass
Xianning Energy
Conservation 215000000 Xianning XianningChina China Glass Processing 75% 25%
Continuing
Company Division
Qingyuan Energy Manufacture and
Conservation China Qingyuan sale of various
Company 1055000000 Qingyuan China types of ultra-thin
100% Established
electronic glass
Shenzhen CSG
Financial Leasing 300000000 Shenzhen Shenzhen Financial leasing
Co. Ltd. China China business etc.
75% 25% Established
Jiangyou Sand 100000000 Jiangyou Jiangyou
Production and
Mining Company China China sale of silica sand 100%and its by-products Established
Manufacturing
Shenzhen
Display Company 143000000
Shenzhen Shenzhen and sales of
China China display 60.8% Purchase
components
Zhaoqing Energy
Conservation 200000000 Zhaoqing ZhaoqingChina China Glass Processing 100%Company Established
Zhaoqing
Automobile 200000000 Zhaoqing ZhaoqingChina China Glass Processing 100%Company Established
Anhui New Fengyang Fengyang Manufacture and
Energy Company 1750000000 China China sale of solar glass 100% Established
Anhui Quartz 75000000 Fengyang Fengyang Quartzite miningCompany China China and processing 100% Established
Anhui Silicon
Valley Mingdu 360000000 Fengyang Fengyang Mining 60%
Mining Co. Ltd. China China Established
Xi'an Energy
Conservation 150000000 Xi'an Xi'anChina China Glass Processing 55% 45%Company Established
Qinghai New Delingha Delingha Manufacture and
Energy Company 1350000000 China China sale of high-purity 100% Establishedsilicon materials
Guangxi New
Energy Materials 850000000 Beihai Beihai Manufacture and
Company China China sale of solar glass
75% 25% Established
Note (1): The registered capital of Hebei South Glass is denominated in U.S. dollars
Note (2): The registered capital of South Glass (Hong Kong) Co. Ltd. is denominated in Hong Kong
dollars
IX. Government Grants
1. Liability items related to government grants
91CSG Holding Co. Ltd.
Notes to the Financial Statements
2025 (Unless otherwise stated all amounts are in RMB)
New AmountRecognized Amount
Accounting Beginning subsidyamount for as transferred to
Other
Item Balance Non-operating other income Changes for
Ending Related to
the current the Period balance assets/income
period Income for for the periodthe Period
deferred
income 487252038 26290800 39025612 173446115 301071111
Related to
assets/income
Total 487252038 26290800 39025612 173446115 301071111
2. Government grants recognized in current period profit or loss
Account Current Period Amount Prior Period Amount
Amortization of Government Grants 39025612 34615832
Other government grants 88014938 95443375
Total 127040550 130059207
X. Risks Related to Financial Instruments
The Group’s principal financial instruments include cash and cash equivalents notes receivable
accounts receivable receivables financing other receivables non-current assets due within one year
other current assets notes payable accounts payable other payables short-term borrowings financial
liabilities held for trading non-current liabilities due within one year long-term borrowings bonds
payable lease liabilities and long-term payables.Details of each financial instrument are disclosed in
the relevant notes. The risks associated with these financial instruments as well as the Group’s risk
management policies to mitigate these risks are described below. The Group’s management manages
and monitors these risk exposures to ensure that the aforementioned risks are kept within defined limits.
1. Risk Management Objectives and Policies
The primary risks arising from the Group’s financial instruments are credit risk liquidity risk and market
risk (including foreign exchange risk interest rate risk and commodity price risk).The Group’s overall risk management plan addresses the unpredictability of financial markets and
seeks to minimize potential adverse effects on the Group’s financial performance.The Group has established risk management policies to identify and analyze the risks it faces set
appropriate risk tolerance levels and design corresponding internal control procedures to monitor the
Group’s risk levels. The Group periodically reassesses these risk management policies and related
internal control systems to adapt to changes in market conditions or the Group’s business operations.The internal audit department also conducts regular and ad hoc reviews to verify whether the
implementation of internal control systems complies with risk management policies.The Board of Directors is responsible for planning and establishing the Group’s risk management
framework formulating the Group’s risk management policies and related guidelines and overseeing
the implementation of risk management measures. The Group has established risk management
policies to identify and analyze the risks it faces; these policies clearly define specific risks and cover
various aspects including market risk credit risk and liquidity risk management. The Group regularly
assesses changes in the market environment and its business operations to determine whether to
update its risk management policies and systems.The Group’s risk management is carried out by
92CSG Holding Co. Ltd.
Notes to the Financial Statements
2025 (Unless otherwise stated all amounts are in RMB)
relevant departments in accordance with policies approved by the Board of Directors. These
departments identify evaluate and mitigate relevant risks through close collaboration with other
business units within the Group.The Group diversifies financial instrument risks through appropriate diversification of investments and
business portfolios and reduces risks associated with concentration in a single industry specific region
or specific counterparty by establishing corresponding risk management policies.
(1) Credit Risk
Credit risk refers to the risk that the Group will incur financial losses due to a counterparty’s failure to
fulfill its contractual obligations.The Group manages credit risk by classifying it into portfolios. Credit risk primarily arises from bank
deposits notes receivable accounts receivable and other receivables.The Group’s bank deposits are primarily held with state-owned banks and other large and
medium-sized listed banks; the Group does not anticipate any significant credit risk associated with
these bank deposits.For notes receivable accounts receivable other receivables and long-term receivables the Group has
established relevant policies to control credit risk exposure. The Group assesses customers’
creditworthiness based on their financial condition credit history and other factors such as current
market conditions and sets corresponding credit terms accordingly.The Group regularly monitors
customers’ credit records. For customers with poor credit records the Group takes measures such as
issuing written payment reminders shortening credit terms or revoking credit terms to ensure that the
Group’s overall credit risk remains within manageable limits.The debtors of the Group’s accounts receivable are customers distributed across various industries and
regions. The Group continuously conducts credit assessments of the financial status of accounts
receivable and purchases credit insurance when appropriate.The Group’s maximum credit risk exposure is the carrying amount of each financial asset on the
balance sheet. The Group has not provided any other guarantees that may expose the Group to credit
risk.Among the Group’s accounts receivable the top five customers (primarily photovoltaic glass
customers) account for 34% of the Group’s total accounts receivable (2024: 33%). These customers are
all industry leaders with good credit standing and the Group’s risk of non-collection is relatively
low;Among the Group’s other receivables the five largest companies by outstanding amount account
for 59% of the Group’s total other receivables (2024: 90%).
(2) Liquidity Risk
Liquidity risk refers to the risk that the Group may face a shortage of funds when fulfilling obligations
settled by the delivery of cash or other financial assets.In managing liquidity risk the Group maintains and monitors cash and cash equivalents that
management deems sufficient to meet the Group’s operating needs and mitigate the impact of cash flow
fluctuations. The Group’s management monitors the utilization of bank borrowings and ensures
compliance with loan agreements. Additionally the Group has obtained commitments from major
93CSG Holding Co. Ltd.
Notes to the Financial Statements
2025 (Unless otherwise stated all amounts are in RMB)
financial institutions to provide sufficient standby funding to meet both short-term and long-term funding
needs.At the end of the period the Group’s financial liabilities and off-balance-sheet guarantees were
analyzed by maturity of undiscounted remaining contractual cash flows as follows (in RMB):
Balance at the end of the period
Item
Within one year 1 to 2 years 2 to 5 years Over five years Total
Financial liabilities:
short-term
borrowings 1165192348 1165192348
Notes Payable 2557712651 2557712651
accounts payable 2769745963 2769745963
Other payables 369513739 369513739
Non-current
liabilities due within 1908963192 1908963192
one year
Other current
liabilities 320616877 320616877
long-term
borrowings 190509552 2421324285 4527652848 235668787 7375155472
Lease liabilities 2873893 5631404 14552586 23057883
Long-term
payables 176868078 417402502 594270580
Total financial
liabilities and 9282254322 2601066256 4950686754 250221373 17084228705
contingent liabilities
As of the end of the previous year the Group’s financial liabilities and off-balance-sheet guarantees
were analyzed by maturity of undiscounted remaining contractual cash flows as follows (in RMB):
Opening Balance
Item
Within one year 1 to 2 years 2 to 5 years Over five years Total
Financial liabilities:
short-term
borrowings 1175046211 1175046211
Notes Payable 2244413755 2244413755
accounts payable 3092025797 3092025797
Other payables 312816531 312816531
Non-current
liabilities due within 2210464448 2210464448
one year
Other current
liabilities 218529333 218529333
long-term
borrowings 190373964 2772567174 2866975537 861770244 6691686919
Lease liabilities 2947236 5549939 13153432 21650607
Long-term payables 115153592 302856111 46607770 464617473
94CSG Holding Co. Ltd.
Notes to the Financial Statements
2025 (Unless otherwise stated all amounts are in RMB)
Item Opening Balance
Total Financial
Liabilities and
Contingent 9443670039 2890668002 3175381587 921531446 16431251074
Liabilities
The amounts of financial liabilities disclosed in the table above represent undiscounted contractual cash
flows and may therefore 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 will fluctuate due to changes in market prices including interest rate risk foreign exchange
risk and other price risks.Interest Rate Risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate
due to changes in market interest rates. Interest rate risk may arise from recognized interest-bearing
financial instruments and unrecognized financial instruments (such as certain loan commitments).The Group’s interest rate risk primarily arises from long-term interest-bearing liabilities 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 proportion of fixed-rate and
floating-rate contracts based on prevailing market conditions and maintains an appropriate mix of fixed-
and floating-rate instruments through regular review and monitoring.The Group closely monitors the impact of interest rate fluctuations on its interest rate risk.The Group
currently does not have an interest rate hedging policy. However management is responsible for
monitoring interest rate risk and will consider hedging significant interest rate risks when necessary.Rising interest rates would increase the cost of new interest-bearing debt and the interest expense on
the Group’s outstanding floating-rate interest-bearing debt and could have a material adverse effect on
the Group’s financial performance. Management will make timely adjustments based on the latest
market conditions; such adjustments may include arranging interest rate swaps to mitigate interest rate
risk.The Group holds the following interest-bearing financial instruments (in RMB):
Item Balance at End of Period Opening Balance
Fixed-Rate Contracts 975348358 1078169155
Floating-rate contracts 5907513789 5073439317
Total 6882862147 6151608472
For financial instruments held at the balance sheet date that expose the Group to fair value interest rate
risk the impact on net profit and equity in the above sensitivity analysis reflects the effect of
remeasuring these financial instruments at new interest rates assuming a change in interest rates at
the balance sheet date.For floating-rate non-derivative instruments held at the balance sheet date that
expose the Group to cash flow interest rate risk the impact on net profit and equity in the sensitivity
95CSG Holding Co. Ltd.
Notes to the Financial Statements
2025 (Unless otherwise stated all amounts are in RMB)
analysis above represents the effect of such interest rate changes on estimated annual interest expense
or income. The analysis for the previous year is based on the same assumptions and methods.Foreign Exchange Risk
Foreign exchange risk is the risk that the fair value or future cash flows of financial instruments will
fluctuate due to changes in foreign exchange rates. Foreign exchange risk may arise from financial
instruments denominated in currencies other than the functional currency.Foreign exchange risk primarily arises from the impact of fluctuations in foreign exchange rates on the
Group’s financial position and cash flows. Except for assets denominated in Hong Kong dollars held by
the Group’s subsidiary established in Hong Kong the proportion of foreign currency assets and
liabilities held by the Group relative to total assets and liabilities is not material. Therefore the Group
considers the foreign exchange risk it faces to be immaterial.At the end of the period the amounts of the Group’s foreign currency financial assets and foreign
currency financial liabilities converted into RMB are as follows (in RMB):
Foreign Currency Liabilities Foreign Currency Assets
Item Balance at the end of
the period Opening Balance Ending Balance Opening balance
USD 17657897 26836924 363438191 104808255
HKD 12307 67954 7636352 13218722
Other 1777577 1535781 27750065 6949045
Total 19447781 28440659 398824608 124976022
The Group closely monitors the impact of exchange rate fluctuations on its foreign exchange risk.Management is responsible for monitoring foreign exchange risk and will consider hedging significant
foreign exchange risks when necessary.As of December 31 2025 for the Group’s various U.S. dollar-denominated financial assets and
liabilities if the RMB appreciates or depreciates by 10% against the U.S. dollar with all other factors
remaining constant the Group’s net profit would decrease or increase by approximately RMB
29391325 (December 31 2024: decrease or increase of approximately RMB 6627563).
2. Capital Management
The objective of the Group’s capital management policy is to ensure the Group’s ability to continue as a
going concern thereby providing returns to shareholders and benefiting other stakeholders while
maintaining an optimal capital structure to reduce the cost of capital.To maintain or adjust its capital structure the Group may adjust its financing methods adjust the
amount of dividends paid to shareholders return capital to shareholders issue new shares and other
equity instruments or sell assets to reduce debt.The Group monitors its capital structure based on the debt-to-asset ratio (i.e. total liabilities divided by
total assets). At the end of the period the Group’s debt-to-asset ratio was 57% (end of the previous
year: 55%).
96CSG Holding Co. Ltd.
Notes to the Financial Statements
2025 (Unless otherwise stated all amounts are in RMB)
XI. Disclosures on Fair Value
1. Fair value of assets and liabilities measured at fair value at the end of the period
Fair value at the end of the period
Item Level 1 Level 2 Level 3
Fair Value Fair value Fair value Total
Measurement measurement measurement
I. Fair Value
Measurement on -- -- -- --
an Ongoing Basis
Structured
Deposits 230000000 230000000
Accounts
Receivable 533418878 533418878
Financing
investment
properties 286145387 286145387
Total 230000000 819564265 1049564265
During the current year there were no reclassifications between Level 1 and Level 2 in the fair value
measurement of the Group’s financial assets and financial liabilities nor were there any transfers into or
out of Level 3.For financial instruments traded in active markets the Group determines their fair value based on active
market quotes; for financial instruments not traded in active markets the Group uses valuation
techniques to determine their fair value. The valuation models used primarily include discounted cash
flow models and market comparable company models. Input values for valuation techniques mainly
include risk-free rates benchmark interest rates exchange rates credit spreads liquidity premiums
and illiquidity discounts.
(1) Quantitative information regarding significant unobservable inputs used in Level 3 fair value
measurements
Fair value at the Valuation
end of the period technique Unobservable Inputs
Range (weighted
average)
Equity Instrument
Investments:
Income Approach
Receivables Financing 533418878 (Option Pricing Volatility counterparty
Model) credit risk own credit risk
0%–2%
Standard Land Gross floor area of
Industrial commercial Value properties by use market
residential and office 286145387 Method/Comparable unit price of properties by
real estate Sales Method use land price growth rate
Income Approach development intensity
XII. Related Parties and Related-Party Transactions
1. Information on the Company’s Parent Company
The Company has no parent company
97CSG Holding Co. Ltd.
Notes to the Financial Statements
2025 (Unless otherwise stated all amounts are in RMB)
2. Information on the Company’s Subsidiaries
For details regarding the Company’s subsidiaries please refer to Note 8 “Interests in Subsidiaries.”
3. Joint Ventures and Associates
The Company has no joint ventures or associates.
4. Other Related Parties
Names of Other Related Parties Relationship between Other Related Parties and theCompany
Qianhai Life Insurance Co. Ltd. The Company’s Largest Shareholder
Qianhai Life Xian Hospital Co. Ltd. An affiliate of the Company’s largest shareholder
Qianhai Life Guangzhou General Hospital Co. Ltd. Affiliate of the Company’s Largest Shareholder
Shenzhen Hongtu Construction Co. Ltd. An affiliate of the Company’s largest shareholder
Suzhou Baoqi Logistics Co. Ltd. An affiliate of the Company’s largest shareholder
Shenzhen Jinsheng Supply Chain Co. Ltd. Affiliate of the Company’s Largest Shareholder
5. Related-Party Transactions
(1) Related-party transactions involving the purchase and sale of goods and the provision and receipt
of services
Table of Purchases of Goods/Receipt of Services
Details of
Related Party Related-Party Amount for the Current Transactions from the
Transactions Period Previous Period
Qianhai Life Insurance Co. Ltd. Services Received 6968275 7291935
Qianhai Life Guangzhou General Hospital
Co. Ltd. Received Services 222896 401585
Total 7191171 7693520
Statement of Sales of Goods/Provision of Services
Details of
Related Parties Related-Party Current Period Amount Prior Period Amount
Transactions
Qianhai Life Xian Hospital Co. Ltd. Sales of Goods 1786505
Other Related Parties Sales of goods 4113 109067
Total 4113 1895572
Compensation for Key Management Personnel
Item Current Period Amount Prior Period Amount
Compensation 10424800 14541200
6. Accounts Receivable and Payable from Related Parties
98CSG Holding Co. Ltd.
Notes to the Financial Statements
2025 (Unless otherwise stated all amounts are in RMB)
(1) Accounts Receivable
Ending Balance Beginning Balance
Item Name Related Party Carrying allowance for
Amount doubtful accounts Carrying amount
allowance for
doubtful accounts
accounts Shenzhen Hongtu
receivable Construction Co. Ltd. 7890900 7496355 8652356 7382793
accounts Shenzhen Jinsheng Supply
receivable Chain Co. Ltd. 22090 20986 22090 20986
Prepaid Qianhai Life Insurance Co.Expenses Ltd. 563932 602449
Total 8476922 7517341 9276895 7403779
(2) Accounts Payable
Item Name Related Party Ending Book Value Opening Balance
Payables Suzhou Baoqi Logistics Co. Ltd. 300000 300000
Other payables Qianhai Life Insurance Co. Ltd. 40000 46646
contract liabilities Other related parties 360758 483657
Total 700758 830303
XIII. Commitments and Contingencies
1. Significant Commitments
The following are the Group’s capital expenditure commitments as of the balance sheet date that have
been contracted but do not yet require recognition in the financial statements:
Item Balance at End of Period Opening Balance
Buildings Structures and Machinery
and Equipment 226478660 903669511
2. Contingencies
(1) Significant contingent liabilities as of the balance sheet date
Contingent liabilities arising from pending litigation and arbitration and their financial impact
Plaintiff Defendant Subject Matter Court Amount inDispute Case Status
CSG Suzhou
Jiangsu Huajian Corporate Wujiang District
Construction Co. Headquarters Construction People's Court of 20560667 Pending
Ltd. (Note 1) Management Co. Contract Dispute Suzhou City
Ltd.Hefei Construction Anhui CSG New Hefei
Engineering Group Energy Materials ConstructionTechnology Co. Contract Dispute Intermediate 42124294 PendingCo. Ltd. (Note 2) Ltd. People's Court
Sichuan Anhui CSG New
Shuncheng Energy Materials Construction Fengyang County
Construction Technology Co. Contract Dispute Peoples Court
31972688 Pending
99CSG Holding Co. Ltd.
Notes to the Financial Statements
2025 (Unless otherwise stated all amounts are in RMB)
Plaintiff Defendant Subject Matter Court Amount inDispute Case Status
(Group) Co. Ltd. Ltd.(Note 3)
Jiangsu Zhongyi Anhui CSG New
Construction Energy Materials Construction Fengyang County
Group Co. Ltd. Technology Co. Contract Dispute Peoples Court 37539794 Pending
(Note 4) Ltd.Note 1: There is a dispute regarding construction payments between CSG Suzhou Corporate
Headquarters Management Co. Ltd. and Jiangsu Huajian Construction Co. Ltd. As of the date of this
report the case is pending.Note 2: Anhui New Energy and Hefei Construction Group Co. Ltd. are involved in a dispute over
construction payments. As of the date of this report’s announcement the case is pending.Note 3: Anhui New Energy and Sichuan Shuncheng Construction (Group) Co. Ltd. are involved in a
dispute over construction payments. As of the date of this report’s announcement the case is pending.Note 4: Anhui New Energy and Jiangsu Zhongyi Construction Group Co. Ltd. are involved in a dispute
regarding construction payments. As of the date of this report’s announcement the case is pending.XIV. Events Subsequent to the Balance Sheet Date
Profit Distribution After the Balance Sheet Date
Proposed Dividend Per 10 Shares (RMB) 0.2
Profits or dividends declared and approved for distribution 59792609
XV. Other Important Matters
1. Segment Information
(1) Basis for Determining Reportable Segments and Accounting Policies
Based on the Group’s internal organizational structure management requirements and internal
reporting system the Group’s business operations are divided into four reportable segments. These
reportable segments are determined based on financial information required for the Company’s daily
internal management. The Group’s management regularly evaluates the operating results of these
reportable segments to determine the allocation of resources and assess their performance.The Group’s reportable segments include:
- The Glass Segment responsible for the production and sale of float glass products photovoltaic glass
products architectural glass products and silica sand required for glass production.- The Electronic Glass and Display Segment responsible for the production and sale of display
components and specialty ultra-thin glass products among others.- The Solar and Other Segment which is responsible for the production and sale of polysilicon and solar
cell module products photovoltaic energy development and other products.
100CSG Holding Co. Ltd.
Notes to the Financial Statements
2025 (Unless otherwise stated all amounts are in RMB)
- Other unallocated segments.Segment reporting information is disclosed in accordance with the accounting policies and
measurement criteria used by each segment when reporting to management; these accounting policies
and measurement bases are consistent with those used in preparing the financial statements.
(2) Financial Information for Reportable Segments
Electronic
Item Glass Industry Glass and Solar and Unallocated Inter-segment
Display Devices Other Industries Amount eliminations
Total
Revenue from
external 12198305391 1138346327 379301779 3015511transactions 13718969008
Inter-segment
revenue 81290149 79643029 59503703 269995991 -490432872
Interest
expense 140569618 17994944 8372954 80193334 247130850
Depreciation
and 1014805801 222205483 132951559 11067869 1381030712
amortization
Total Profit 336388128 -26474240 -236222662 25383841 99075067
Total Assets 19949759565 2846975724 6954240410 1554053136 31305028835
Total Liabilities 10606189469 482366164 3060172962 3601612658 17750341253
Increase in
non-current 783231721 2437089 459167066 2670327 1247506203
assets
XVI. Notes to Major Items in the Company’s Financial Statements
1. Accounts Receivable
(1) Disclosure by Age
Age Closing Book Balance Opening Balance
Within 1 year (including 1 year) 274825872 110153840
Total 274825872 110153840
(2) Disclosure by bad debt provision method
Ending Balance Beginning Balance
Carrying Amount allowance for Balance on the allowance for
Category doubtful accounts Carrying books doubtful accounts Carrying
Amount Provision amountRatio Amount Amount
amount
Ratio Ratio Amount
Provision
Ratio
Accounts
receivable
for which 274825872
allowance 100% 274825872 110153840 100% 110153840
for
101CSG Holding Co. Ltd.
Notes to the Financial Statements
2025 (Unless otherwise stated all amounts are in RMB)
Category Ending Balance Beginning Balance
doubtful
accounts
is
calculated
by group
Total 274825872 100% 274825872 110153840 100% 110153840
(3) Top Five Accounts Receivable and Contract Assets by Debtor at the End of the Period
Percentage of Ending Balance
End-of-Period End-of-Period Total of Allowance for
Company Name Balance of
End-of-Period Balance of End-of-Period
Accounts Balance of Accounts Balance of
Doubtful Accounts
Receivable Contract Assets Receivable and Accounts
and Impairment
Contract Assets Receivable and Reserve for
Contract Assets Contract Assets
Total of the top 5
accounts
receivable by 274825872 274825872 100%
balance
Total 274825872 274825872 100%
2. Other receivables
Item Ending Balance Beginning Balance
Dividends Receivable 27873015
Other receivables 2824626577 2342796700
Total 2852499592 2342796700
(1) Dividends receivable
Nature of the item Ending Balance Beginning Balance
Dividends receivable from subsidiaries 27873015
Total 27873015
(2) Other Receivables
1) Classification of other receivables by nature
Nature of Receivables Closing Book Balance Opening Balance
Amounts due from related parties 2819243388 2222025032
Other 5436095 172093539
Total 2824679483 2394118571
2) Disclosure by Age of Receivables
Age Ending Book Balance Opening balance
Within 1 year (including 1 year) 2234430826 2036223049
102CSG Holding Co. Ltd.
Notes to the Financial Statements
2025 (Unless otherwise stated all amounts are in RMB)
Age Ending Book Balance Opening balance
Over 1 year 590248657 357895522
Total 2824679483 2394118571
3) Disclosure by bad debt provision method
Ending balance
Category Carrying amount allowance for doubtful accounts
Carrying amount
Amount Percentage Amount AllowanceRatio
Allowance for doubtful
accounts on an individual 36000 36000 100%
basis
Allowance for doubtful
accounts by portfolio 2824643483 100% 16906 2824626577
Of which:
Related party consolidation 2819243388 100% 2819243388
Non-related party portfolio 5400095 16906 0.31% 5383189
Total 2824679483 100% 52906 2824626577
Continued
Beginning Balance
Category Carrying Balance allowance for doubtful accounts
Amount Ratio Amount Allowance
Carrying Value
Ratio
Allowance for doubtful
accounts on an individual 171000000 7% 51300000 30% 119700000
basis
Allowance for doubtful
accounts by portfolio 2223118571 93% 21871 2223096700
Of which:
Related party portfolio 2222025032 93% 2222025032
Non-related party portfolio 1093539 21871 2% 1071668
Total 2394118571 100% 51321871 2% 2342796700
Allowance for doubtful accounts calculated using the general expected credit loss model:
Stage 1 Stage 2 Stage 3
Expected credit Expected credit
allowance for doubtful Expected credit losses over the entire losses over the entire
accounts Totallosses over the next 12 life of the loan (no life of the loan (with
months credit impairment credit impairment
losses) losses recognized)
Balance as of January
12025218715130000051321871
Balance as of January
1 2025 during the
current period
103CSG Holding Co. Ltd.
Notes to the Financial Statements
2025 (Unless otherwise stated all amounts are in RMB)
allowance for doubtful Stage 1 Stage 2 Stage 3 Total
—ac—coTurnatnssferred to
Phase 2
——Transferred to
Phase 3
——Transferred back
to Phase 2
——Reversed to
Phase 1
Accrual for the current
period -4965 36000 31035
Reversal for the period 51300000 51300000
Write-offs for the period
Other changes
Balance as of
December 31 2025 16906 36000 52906
4) Details of the allowance for doubtful accounts made recovered or reversed during the current period
Allowance for doubtful accounts for the current period:
Beginning Changes for the PeriodCategory EndingBalance Provision Recovered or Write-off or BalanceReversed cancellation Other
Allowance for
doubtful
accounts—other 51321871 31035 51300000 52906
accounts
receivable
Total 51321871 31035 51300000 52906
5) Top Five Other Receivables by End-of-Period Balance Grouped by Debtor
Percentage of
Company Name Nature of the
Ending balance of
payment Ending Balance Aging
Total Other
Receivables at End allowance for
of Period doubtful accounts
Entity A Advances 843509575 Within 1 year 30%
Entity B Advance payment 321456270 Within 1 year 11%
Entity C Advance payment 249400642 Within 1 year 9%
Unit D Advance payment 232307777 Within 2 years 8%
Unit E Advance payment 228596521 Within 2 years 8%
Total 1875270785 66%
3. Long-term equity investment
Ending Balance Beginning Balance
Item Carrying Carrying Carrying Carrying
Amount Impairment amount amount ImpairmentAllowance allowance amount
104CSG Holding Co. Ltd.
Notes to the Financial Statements
2025 (Unless otherwise stated all amounts are in RMB)
Item Ending Balance Beginning Balance
Investment in
subsidiaries 10552821440 15000000 10537821440 10565321440 15000000 10550321440
Total 10552821440 15000000 10537821440 10565321440 15000000 10550321440
(1) Investments in subsidiaries
Changes during the period
Beginning Opening
balance balance of Additional Provi Ending balance
Closing
Investee Decrease (Carrying balance of(Carrying impairment sion impairment
amount) allowance Investment
Oth Amount)
s Investment
for er allowanceimpair
ment
Chengdu Glass
Company 151397763 151397763
Sichuan Energy
Conservation 119256949 119256949
Company
Tianjin Energy
Conservation 247833327 247833327
Company
Dongguan
Engineering 222276243 222276243
Company
Dongguan Solar
Company 355120247 355120247
Dongguan
Photovoltaic 604099854 604099854
Company
Yichang Silicon
Materials 909960170 909960170
Company
Wujiang
Engineering 254401190 254401190
Company
Hebei South
Glass Company 266189705 266189705
CSG Hong Kong
Co. Ltd. 87767304 87767304
Wujiang Glass
Company 567645430 567645430
Jiangyou CSG
Mining
Development Co. 102415096 102415096
Ltd.Xianning Float
Glass Company 181116277 181116277
Xianning Energy
Conservation 165452035 165452035
Company
Qingyuan Energy
Conservation 885273105 885273105
Company
105CSG Holding Co. Ltd.
Notes to the Financial Statements
2025 (Unless otherwise stated all amounts are in RMB)
Investee Beginning Opening Changes during the period Ending balance Closing
Shenzhen CSG balance balance of (Carrying balance of
Financial Leasing 133500000 133500000
Co. Ltd.Shenzhen
Display Devices 550765474 550765474
Co. Ltd.Zhaoqing Energy
Conservation 200000000 200000000
Company
Zhaoqing CSG
Automotive Glass 159959074 159959074
Co. Ltd.Anhui New
Energy Company 1750000000 1750000000
Anhui Quartz
Company 75000000 75000000
Anhui CSG
Silicon Valley
Mingdu Mining 216000000 216000000
Development Co.Ltd.Xi'an Energy
Conservation 82500000 82500000
Company
Guangxi New
Energy Materials 600000000 37500000 637500000Company
CGCC (Suzhou)
Corporate
Headquarters 30000000 30000000
Management Co.Ltd.Shenzhen CSG
Quartz Material 40000000 40000000
Industry Co. Ltd.Shenzhen CSG
New Energy
Industry 1350000000 1350000000
Development Co.Ltd.Other 242392197 15000000 50000000 192392197 15000000
Total 10550321440 15000000 37500000 50000000 10537821440 15000000
4. Operating Revenue and Operating Cost
Current Period Amount Prior Period Amount
Item
Revenue Cost Revenue Cost
Operating revenue 3015511 4519263
Other Operations 269611579 334155915
Total 272627090 338675178
5. Investment income
106CSG Holding Co. Ltd.
Notes to the Financial Statements
2025 (Unless otherwise stated all amounts are in RMB)
Item Current Period Amount Prior Period Amount
Investment income on long-term equity
investments accounted for using the cost 457149469 777322478
method
Investment income on disposal of long-term
equity investments -4363221 -1104772
Investment income from financial assets held
for trading 5671986 416636
Income from time deposits etc. 166431 924109
Total 458624665 777558451
XVII. Supplementary Information
1. Schedule of Non-recurring Gains and Losses for the Current Period
Item Amount Description
Gain (Loss) on Disposal of Non-Current Assets 20905390
Government grants recognized in current period profit or loss (excluding
government grants closely related to the Company’s normal business
operations in compliance with national policies received in accordance 127410847
with established criteria and having a continuing impact on the
Company’s profit or loss)
Gains or losses arising from changes in the fair value of financial assets
and financial liabilities held by non-financial enterprises and gains or
losses arising from the disposal of financial assets and financial liabilities 5838417
excluding effective hedging transactions related to the Company’s normal
business operations
Reversal of impairment reserves for receivables tested individually 67384016
Gains or losses on debt restructuring 214501
Gains or losses arising from changes in the fair value of investment
properties measured using the fair value model -9045057
Other non-operating income and expenses other than those listed above 42385071
Less: Income tax effect 20746804
Impact on non-controlling interests (after tax) 1477174
Total 232869207
2. Return on Equity and Earnings Per Share
Profit for the Reporting Weighted Average Return on Earnings per Share
Period Equity Basic Earnings Per Share Diluted Earnings Per Share
(RMB/share) (RMB/share)
Net profit attributable to
common shareholders 0.92% 0.04 0.04
Net profit attributable to
common shareholders of the
Company excluding -0.79% -0.04 -0.04
non-recurring gains and
losses
107CSG Holding Co. Ltd.
Notes to the Financial Statements
2025 (Unless otherwise stated all amounts are in RMB)
CSG Holding Co. Ltd.April 24 2026
108
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