CSG HOLDING CO. LTD.ANNUAL REPORT 2023
Chairman of the Board:
CHEN LIN
April 2024CSG Annual Report 2023
Section I. Important Notice Content and Paraphrase
Board of Directors and the Supervisory Committee of CSG Holding Co. Ltd. (hereinafter referred to
as the Company) and its directors supervisors and senior executives hereby confirm that there are no
any fictitious statements misleading statements or important omissions carried in this report and
shall take individual and joint legal responsibilities for the facticity accuracy and completeness of
the whole contents.Ms. Chen Lin Chairman of the Board Ms. Wang Wenxin responsible person in charge of accounting
and Ms. Wang Wenxin principal of the financial department (accounting officer) confirm that the
Financial Report enclosed in this Annual Report 2023 is true accurate and complete.All directors were present at the meeting of the Board for deliberating the annual report of the
Company in person.The future plans development strategies and other forward-looking statements mentioned in this
report do not constitute a material commitment of the Company to investors. Investors and relevant
parties should pay attention to investment risks and understand the differences between plans
forecasts and commitments.The Company has described the risk factors and countermeasures of the Company's future
development in detail in this report. Please refer to Section III. Management Discussion and Analysis.The Company is required to comply with the disclosure requirements of "Non metallic Building
Materials Related Business" in the "Self regulatory Guidelines for Listed Companies on the Shenzhen
Stock Exchange No. 3- Industry Information Disclosure (Revised in 2023)".The deliberated and approved plan of profit distribution in the Board Meeting is distributing cash
dividend of RMB 2.5 yuan (tax included) for every 10 shares to all shareholders based on
3070692107 shares of the total current share capital0 bonus shares (including tax) will be given
and no capital stock will be converted from provident fund. The actual amount of the cash dividend
distributed will be determined according to the total share capital on the registration date of the
Company's implementation of the profit distribution plan.This report is prepared both in Chinese and English. Should there be any inconsistency between the
Chinese and English versions the Chinese version shall prevail.
1CSG Annual Report 2023
Content
Section I. Important Notice Content and Paraphrase... 1
Section II. Company Profile& Financial Highlights ... 5
Section III. Management Discussion and Analysis ..... 9
Section IV. Corporate Governance ................... 40
Section V. Environment and Social Responsibility ... 58
Section VI. Important Events ....................... 63
Section VII. Changes in Shares and Particulars abo.. 86
Section VIII. Preferred shares ..................... 93
Section IX. Bonds .................................. 93
Section X. Financial Report ........................ 94
2CSG Annual Report 2023
Documents Available for Reference
I. Text of the financial report carrying the signatures and seals of the legal representative responsible person in charge of
accounting and person in charge of financial institution;
II. Original of the Auditors’ Report carrying the seal of accounting firm and the signatures and seals of the certified public
accountants;
III. All texts of the Company’s documents and original public notices disclosed in the website and papers appointed by
CSRC in the report period.
3CSG Annual Report 2023
Paraphrase
Items Refers to Contents
Company the Company CSG or the Group Refers to CSG Holding Co. Ltd.Foresea Life Refers to Foresea Life Insurance Co. Ltd.The electronic glass with thickness between
Ultra-thin electronic glass Refers to
0.1~1.1mm
AG glass Refers to Anti-glare glass
AF glass Refers to Anti-fingerprint glass
AR glass Refers to Anti-reflection glass
CSG’s brand for multi-silver high-performance
Ice Kirin Refers to
energy-saving glass
BIPV Refers to Building Integrated Photovoltaic
4CSG Annual Report 2023
Section II. Company Profile& Financial Highlights
I. Company information
Short form of the stock Southern Glass A、Southern Glass B Stock code 000012、200012
Listing stock exchange Shenzhen Stock Exchange
Legal Chinese name of the中国南玻集团股份有限公司
Company
Abbr. of legal Chinese name of the南玻集团
Company
Legal English name of the
CSG Holding Co. Ltd.Company
Abbr. of legal English name of the
CSG
Company
Legal Representative Chen Lin
Registered Add. CSG Building No.1 the 6th Industrial Road Shekou Shenzhen P. R.C.Post Code 518067
Office Add. CSG Building No.1 the 6th Industrial Road Shekou Shenzhen P. R.C.Post Code 518067
Internet website www.csgholding.com
E-mail securities@csgholding.com
II. Person/Way to contact
Secretary of the Board Representative of security affairs
Name Chen Chunyan Xu Lei
CSG Building No.1 of the 6th Industrial CSG Building No.1 of the 6th Industrial
Contacts add.Road Shekou Shenzhen P. R.C. Road Shekou Shenzhen P. R.C.Tel. (86)755-26860666 (86)755-26860666
Fax. (86)755-26860685 (86)755-26860685
E-mail securities@csgholding.com securities@csgholding.com
III. Information disclosure and preparation place
The website of the stock exchange where the
www.szse.cn
company discloses the annual report
The name and website of the media where the Securities Times China Securities Journal Shanghai Securities News
company discloses the annual report Securities Daily and Juchao Website (www.cninfo.com.cn)
The place for preparation of the annual report Office of the Board of Directors of the Company
IV. Registration changes of the Company
Unified social credit code: 914403006188385775
Changes of main business since listing (if No changes
5CSG Annual Report 2023
applicable)
Previous changes for controlling shareholders
No changes
(if applicable)
V. Other relevant information
CPA firm engaged by the Company
Name of CPA firm Grant Thornton Zhitong Certified Public Accountants LLP
Offices add. for CPA firm 5th Floor Saite Plaza 22 Jianguomenwai Street Chaoyang District Beijing
Signing Accountants Su Yang Yang Hua
Sponsor institute engaged by the Company for performing continuous supervision duties in the report period
□ Applicable √ Not applicable
Financial consultant engaged by the Company for performing continuous supervision duties in the report period
□ Applicable √ Not applicable
VI. Main accounting data and financial indexes
Whether it has retroactive adjustment or restatement on previous accounting data
□Yes √No
Changes over
2023 2022 the previous 2021
year
Operating income (RMB) 18194864366 15198706998 19.71% 13672372823
Net profit attributable to shareholders of
16556144462037202500-18.73%1526392754
the listed company (RMB)
Net profit attributable to shareholders of
the listed company after deducting non- 1535858783 1819429258 -15.59% 1436603707
recurring gains and losses (RMB)
Net cash flow arising from operating
2759788894195712323141.01%3899648030
activities (RMB)
Basic earnings per share (RMB/Share) 0.54 0.66 -18.18% 0.50
Diluted earnings per share (RMB/Share) 0.54 0.66 -18.18% 0.50
Weighted average ROE 12.30% 16.78% -4.48% 14.11%
Changes over
As at 31 Dec.As at 31 Dec. 2022 the end of the As at 31 Dec. 2021
2023
previous year
Total assets (RMB) 30362057312 25904013306 17.21% 19935902125
Net assets attributable to shareholders of
14050840217128548837069.30%11426724496
the listed company (RMB)
The lower of the Company’s net profit before and after the deduction of non-recurring gains and losses in the last three
fiscal years is negative and the auditor's report of the previous year shows that the Company’s going concern ability is
uncertain
□ Yes √ No
The lower of the net profit before and after the deduction of the non-recurring gains and losses is negative
□ Yes √ No
6CSG Annual Report 2023
VII. Accounting Data Differences under and Foreign Accounting Standards
1. Net Income and Equity Differences under CAS and IFRS
□ Applicable √ Not applicable
No such differences for the Report Period.
2. Net Income and Equity Differences under CAS and Foreign Accounting Standards
□ Applicable √ Not applicable
No such differences for the Report Period.VIII. Main financial indexes by quarter
Unit: RMB
Q1 Q2 Q3 Q4
Operating income 4070673784 4318666461 5090592927 4714931194
Net profit attributable to shareholders
396406087493072693577193230188942436
of the listed company
Net profit attributable to shareholders
of the listed company after deducting 369241752 468997016 538045199 159574816
non-recurring gains and losses
Net cash flow arising from operating
-28440717980283436411058190871135542622
activities
Whether there are significant differences between the above-mentioned financial index or its total number and the relevant
financial index disclosed in the Company’s quarterly report and semi-annual report or not
□Yes √ No
IX. Items and amounts of non-recurring gains and losses
√Applicable □ Not applicable
Unit: RMB
Item 2023 2022 2021 Note
Gains/losses from the disposal of non-current asset
(including the write-off that accrued for impairment -9628136 15213059 -1493248
of assets)
Government subsidies included in the profit and loss
of the current period (closely related to the normal
operation of the company in line with national
policies and provisions in accordance with the 118358356 188756525 104507242
defined standards except government subsidies that
have a continuous impact on the profit and loss of the
company)
In addition to the effective hedging business related
to the normal operation of the company the profit or
loss of fair value changes arising from the holding of
financial assets and financial liabilities by non- 3106870 31567854 17132672
financial enterprises and the loss or gain arising from
the disposal of financial assets and financial
liabilities and available for sale financial assets
Reversal of provision for impairment of receivables
875704063893851429653
that have been individually tested for impairment
7CSG Annual Report 2023
Profit and loss from debt restructuring 4908612 0 -285025
Other non-operating income and expenditure except
1883321214743778-13526210
for the aforementioned items
Less: Impact on income tax 21244208 34242061 14201899
Impact on minority shareholders’ equity (post-
333608346552983774138
tax)
Total 119755663 217773242 89789047 --
Particulars about other gains and losses that meet the definition of non-recurring gains and losses:
□ Applicable √ Not applicable
It did not exist that other profit and loss items met the definition of non-recurring gains and losses.Explanation of the non-recurring gains and losses listed in the Explanatory Announcement No.1 on Information
Disclosure for Companies Offering their Securities to the Public - Non-recurring Gains and Losses as recurring gains and
losses
□ Applicable √ Not applicable
It did not exist that non-recurring profit and loss items listed in the "Explanatory Announcement No. 1 on Information
Disclosure of Companies Offering Securities to the Public - Non-recurring Profit and Loss" were defined as recurring
profit and loss items in the report period.
8CSG Annual Report 2023
Section III. Management Discussion and Analysis
I. Particulars about the industry the Company engages in during the report period
Photovoltaic glass industry
In 2023 with the continuous expansion of the global photovoltaic market the scale of the photovoltaic industry and the
growth rate of installed capacity were increasing. Driven by the growth in the installed capacity of photovoltaic modules
and the increasing penetration rate of double-glass modules the demand for photovoltaic glass has been growing
prompting enterprises to ramp up production. With the release of new capacity the photovoltaic glass market has
experienced an increase in quantity but a decrease in price. This coupled with the rising prices of various raw materials
fuels and labour costs resulted in robust demand rising costs and low selling prices in the industry.Architectural glass industry
The architectural glass business is to further process the original float glass sheet to manufacture energy-saving building
glass products with both safety and aesthetic effects in order to improve the energy-saving and safety performance of
buildings as well as the visual aesthetic effects. Building energy-saving glass has made a significant contribution to
energy saving in the process of building use. The penetration rate in developed countries in Europe and the United States
has already exceeded 80% but the overall penetration rate in China is still low. The total number of buildings in China ishuge. In order to cope with the pressure of global warming to achieve the goals of “Carbon Peaking in 2030 and CarbonNeutrality in 2060” and to reduce building energy consumption and carbon emissions it is imperative to reduce the
energy consumption and carbon emissions of buildings to vigorously develop green buildings and to carry out energy-
saving renovation of existing buildings. According to the Action Plan for the Establishment of Green Buildings issued by
the Ministry of Housing and Urban-Rural Development and the Ministry of Industry and Information Technology as well
as the national Action Plan for Carbon Peaking Before 2030 Comprehensive Work Plan for Energy Conservation and
Emission Reduction during the 14th Five-Year Plan and other guidance documents’ requirements 100% of the newly-
built urban building should meet the green building standards in 2025 (about 50% in 2020). It is expected that the
architectural glass business will gain significant development opportunities during the “14th Five-Year Plan” period. In
addition with the gradual improvement of domestic social consumption level in recent years building energy
conservation safety standards and quality requirements have been continuously improved. In practice the bad practice
of winning the bid by the lowest price for construction projects has been initially reversed and the quality and influence
of “Made in China” have been increasingly recognized around the world which will bring broader development space to
advantageous enterprises that attach importance to product quality and technological innovation as well as stable
industrial chain and supply chain.Float glass industry
In 2023 the float glass industry experienced a rebound in demand from downstream markets buoyed by policies such as
"guarantee of timely delivery of housing projects" which led to an improved supply-demand structure and capacity
expansion in the industry. According to statistics from third-party industry information agencies by the end of 2023 there
had been a total of 255 float glass production lines operating nationwide with a combined daily melting capacity of
approximately 173000 tons marking a 6.84% year-on-year increase.Float glass traditionally finds its main application in building materials and its demand trends positively correlate with
infrastructure investments and the overall prosperity of the real estate sector. Statistics released by the National Bureau
of Statistics indicate a 20.4% year-on-year decrease in new housing construction area and a 17.0% increase in completion
9CSG Annual Report 2023
area in 2023. Driven by the "guarantee of timely delivery of housing projects" policy the pace of real estate completions
has accelerated stimulating the release of pent-up demand in existing markets thereby boosting the total demand for float
glass in the current period. However various indicators such as the new construction area and sales area have shown signs
of softening reflecting shifts in the real estate market's supply-demand relationship and increasing uncertainties in
forward market demand. Consequently the float glass market is expected to undergo cyclical adjustments. Based on an
analysis of the market demand structure the ongoing implementation of the national "dual carbon" policy in recent years
has led to a steady rise in the proportion of green buildings resulting in a significant increase in the proportion of energy-
saving glass. Simultaneously as economic growth continues and living standards improve there is a sustained uptick in
demand for high-quality products such as ultra-white float glass. These adjustments to the product demand structure
coupled with the rising demand for high-quality products bode well for industry-leading companies operating in the high-
end market.Electronic glass and display industry
Electronic glass with its unique performance advantages such as high transmittance high strength in ultra-thin state
reliable and stable weather resistance and processing convenience is an indispensable material for cover glass and touch
control plate of intelligent display interactive application terminals such as smartphones tablets and computers. And it
is developing rapidly with the intelligent interactive display industry. With the popularization of information and
communication technologies such as 5G and the development of the mobile Internet the production and lifestyle of human
society are gradually developing into a new form of high integration of people machines things and information in
which everything is interconnected driving the demand for intelligent equipment to increase rapidly and significantly. In
recent years in addition to the rapid popularization of mobile Internet terminals such as smartphones tablets and
computers the vigorous development of smart homes new energy vehicles smart factories smart business displays
advanced education medical care conferences self-service and other industries has brought about the incremental
demand for human-computer interaction equipment which provides a broader market prospect and market space for the
electronic glass industry and also provides a market opportunity for leapfrogging development to upstream material
manufacturers with leading technological innovation capability and benign operation.Against a backdrop of global economic deceleration the consumer electronics market has faced widespread sluggishness
in recent years. According to the latest research report released by an industry research institution in February 2024 the
global shipment volume of smartphones in 2023 totalled 1.14 billion units marking a 5.8% year-on-year decline.Projections indicate that the shipment volume will remain stable in 2024 and the global smartphone market still faces
certain challenges.Solar energy industry
The photovoltaic new energy industry is a strategic emerging industry in China acting as an essential guarantee for the
country to realize energy safety and green development. After over twenty years of development the industrial position
has developed from clean energy to “the most economical” energy today. Driven by the global climate environment
requirements of “carbon peaking and carbon neutrality” photovoltaic power generation will progressively become the
mainstay of the energy structure. Solar energy boasting remarkable advantages such as cleanliness safety and
inexhaustibility presents boundless prospects for development.In 2023 China's photovoltaic industry witnessed accelerated innovation and integration driving further expansion in the
industry scale. According to statistics from the China Photovoltaic Industry Association the outputs of high-purity
crystalline silicon silicon wafers solar cells and modules hit record highs. The industry's total output value exceeded
RMB 1.7 trillion marking impressive year-on-year growth rates of 66.9% 67.5% 64.9% and 69.3% respectively.Throughout the year major photovoltaic products experienced noticeable price declines leading to an overall trend of
"an increase in quantity but a decrease in price" in exports.
10CSG Annual Report 2023
II. Main business of the Company during the report period
CSG is a leading domestic brand of energy-saving glass and a renowned brand of solar PV products and display devices.Its products and technologies are well-known at home and abroad. Its main business includes R&D manufacturing and
sales of high-quality float glass architectural glass photovoltaic glass new materials and information display products
such as ultra-thin electronic glass and display devices as well as renewable energy products such as silicon materials
photovoltaic cells and modules and it provides one-stop services for photovoltaic power station project development
construction operation and maintenance etc. The Company owns quartz sand raw material processing and production
bases in Jiangyou Sichuan; Qingyuan Guangdong; Fengyang Anhui; and Beihai Guangxi (currently under construction)
which ensure a steady supply of raw materials for the Company's glass production.Photovoltaic glass business
In the field of photovoltaic glass the Company took the lead in entering the field of photovoltaic glass manufacturing in
China in 2005. Based on independent research and development the Company has formed a full closed-loop production
capacity from photovoltaic glass original sheet production to deep processing. As at the end of 2023 the Company has
seven photovoltaic rolled glass original sheet production kilns and complementary photovoltaic glass deep processing
production lines in Dongguan Wujiang Fengyang and Xianning and its products cover deep-processing products with
a variety of thicknesses of 1.6-4 mm.In the era of carbon peaking and carbon neutrality the Company is optimistic about the long-term development of the
photovoltaic new energy industry. Seizing the opportune moment for industrial development the Company has leveraged
the national "14th Five-Year Plan" and its own strategic development plan to address weak spots in the capacity and scale
layout of the Group's photovoltaic glass business. By the end of 2023 five new photovoltaic glass production kilns and
complementary processing lines in Fengyang and Xianning had been put into commercial operation. Coupled with the
existing production kilns and complementary processing lines in Dongguan and Wujiang the Company now boasts a
total of seven photovoltaic rolled glass original sheet production kilns along with complementary photovoltaic glass deep
processing production lines in operation. The construction of two new photovoltaic glass production kilns and
complementary processing lines in Beihai is progressing as planned with one kiln already ignited at the end of March
2024 and the other slated for ignition within the same year. With nearly two decades of experience in photovoltaic glass
production CSG has amassed a robust foundation in key equipment and technologies such as kilns calendering and deep
processing which have been significantly showcased in the current round of capacity expansion of the Company's
photovoltaic glass business. As of the end of 2023 the Company had ascended to a leading position in the industry in
terms of photovoltaic glass capacity establishing photovoltaic glass as a new pivotal business segment for the Company.At present the photovoltaic industry is experiencing rapid growth. According to the current policy environment and
market trends the future of photovoltaic power generation holds vast development opportunities. The centralised release
of newly expanded photovoltaic glass capacity may lead to a temporary supply-demand mismatch resulting in market
price fluctuations. Nevertheless the industry is expected to regain its footing on a path towards healthy growth driven
by the rapid expansion of the global market the optimisation of domestic industrial structures and the influence of the
risk early warning mechanism. The Company will make every effort to ensure that its construction projects will be put
into operation as scheduled bolster its production capacity in large-size ultra-thin photovoltaic glass and enhance its
competitive edge in the industry. Additionally long-term strategic partnerships with leading industry players will be
enhanced to further boost the Company's competitiveness in the photovoltaic glass market.Architectural glass business
As one of the largest high-end building energy-saving glass suppliers in China CSG integrates R&D and design technical
consulting production and manufacturing and marketing and service in the architectural glass business. It always aims
11CSG Annual Report 2023
to “build green energy-saving products and create quality life” and forms a CSG brand image with quality service and
continuous R&D as its core competitiveness which is strongly competitive in foreign markets as well.Currently the Company has seven deep processing bases of energy-saving glass in Tianjin Dongguan Xianning
Wujiang Chengdu Zhaoqing and Xi’an. With the completion of the two bases in South China and the one in Northwest
China the Company’s base layout across China has been further optimised. Meanwhile with the clear direction of
intelligent and digital transformation the product diversification and capacity scale of coated insulating glass and coated
glass will see continuous and steady growth which will serve as an adequate guarantee for the comprehensive and steady
improvement of product competitiveness market share and service.CSG’s architectural glass business adheres to the customized business strategy of trinity of technical service marketing
R&D and manufacturing relying on its own manufacturing and R&D strength as well as the marketing and service
network formed by domestic and overseas offices to meet the personalized needs of domestic and foreign customers and
construction projects. In 2017 CSG’s low-E coated glass was awarded the title of Single Champion Product by the
Ministry of Industry and Information Technology and it passed the review again in March 2024 which fully proves the
leading position of CSG’s architectural glass in the industry. The Company has the world’s leading glass deep processing
equipment and testing equipment and its products cover all kinds of architectural and construction glass. The R&D and
application level of the Company’s coating technology keeps pace with the world and its high-end product technology isinternationally leading. Following the double silver coated glass products the Company has successively developed “IceKirin” high-performance energy-saving glass and multi-function energy-saving glass products featuring further improved
sunshade and heat insulation performance and energy-saving contribution. All deep processing bases of the Company are
able to produce and process “Ice Kirin” high-performance energy-saving glass. Under the background of the “dual carbon”
goals and the national green and energy-saving building requirements the market demand for “Ice Kirin” glass has further
expanded. After years of market testing and relying on the Company’s advanced coating technology its high performance
and stability have been well received by the market CSG’s “Ice Kirin” products have become a benchmark in the domestic
market and high-quality energy-saving environmentally friendly LOW-E insulating glass continues to lead the domestic
high-end market share. The Company has always adhered to the intelligent transformation and digital transformation as
the key increment of the development of architectural glass business. It has continuously invested and accumulated rich
experience in the research of production automation intellectualization information technology and equipment and the
efficiency improvement of intelligent upgrading and transformation of traditional equipment. With technological progress
and process optimization the Company has reduced production manpower consumption material consumption and
energy consumption actively promoting the Company’s transformation and upgrading to achieve intensive
manufacturing and high-quality development.The Company’s quality management system for engineering and architectural glass has been respectively approved by
organizations of UK AOQC and Australia QAS. The product quality which meets the national standards of the US the
UK and Australia enables CSG has an advantage in the international tendering and bidding. Since 1988 CSG’s engineers
and technicians have been continuously participating in the formulation and compilation of various national standards
and industry standards. All kinds of high-quality engineering architectural glass provided by the Company are widely
used in landmark buildings such as major city CBDs and transportation hubs at home and abroad which are too numerous
to mention. In 2023 the Company was shortlisted for multiple landmark projects for its unwavering commitment to safety
energy conservation and high quality. These projects include China Merchants Bank Global Headquarters Complex
VIVO's R&D centre the Industry Cluster Centre of the China-Singapore Guangzhou Knowledge City National
Convention and Exhibition Center Xiaomi Future Industrial Park China Huaneng Headquarters Hong Kong Kai Tak
Hospital One Circular Quay in Australia Jeddah Tower in Saudi Arabia and MERDEKA PNB 118 in Kuala Lumpur
and many other domestic and foreign buildings in the Middle East America Europe Australia Southeast Asia and other
places.
12CSG Annual Report 2023
Float glass business
In the field of float glass CSG has 10 advanced float glass production lines in Dongguan Chengdu Langfang Wujiang
and Xianning. Its products that cover high-quality float glass and ultra-white float glass with various thicknesses and
specifications of 1.6-25 mm are trusted by customers because of their quality. In CSG’s float glass portfolio the
proportion of differentiated glass products with special specifications and special application scenarios such as ultra-white
ultra-thin and ultra-thick is large which are widely used in high-end building curtain walls decoration and furniture
mirrors car windshields scanners and copiers home appliance panels display protection and other application fields
with high requirements on glass quality. CSG has established long-term and stable business cooperation with many well-
known processing enterprises. In terms of the float glass business CSG is committed to a high-end differentiated product
strategy actively responding to the new national standard for flat glass implemented in August 2023 to strive for high-
quality development.The profit level of the float glass business is generally positively correlated with the level of real estate new construction
and completion data and is also affected by multiple factors such as current energy and raw material prices product
structure and enterprise management level. Differentiated glass products have higher added value due to specific
application scenarios higher production process difficulties stable demand and relatively proactive pricing by
manufacturers. To adapt to changes in the market the Company focuses on improving management efficiency improving
the level of lean production of conventional products firmly implementing the differentiated competition strategy
carefully cultivating and developing differentiated product markets and continuously increasing the proportion of high-
value-added product sales such as ultra-white products so as to continuously consolidate and enhance the industry
competitiveness of the Company’s float glass business.Thanks to national policies such as the "guarantee of timely delivery of housing projects" the overall completion area in
2023 saw an increase compared to the previous year with market demand improving in the latter half of the year. Under
the macro background of “Steady Growth” of the national economy and the realization of “dual carbon” goals at present
customers in the downstream market are pursuing higher-quality products and the demand for differentiated products
and energy-saving products remains stable.Electronic glass and display business
After more than a decade of hard work CSG’s electronic glass business has always focused on increasing investment in
R&D breaking through high-end market barriers with independent intellectual property rights and independent
innovation and firmly following the development route of product upgrades and iterations to accelerate import
substitution. In 2023 the Company’s electronic glass business continued to develop. Its four subsidiaries Hebei Panel
Yichang Photoelectric Qingyuan New Energy-Saving Materials and Xianning Photoelectric continued to actively
implement further market expansion and product upgrading in the application fields of intelligent electronic terminals
touch components vehicle window glass vehicle-mounted display industrial control and commercial display and smart
home. Therefore the market share and brand influence of the Company’s medium-alumina and high-alumina electronic
glass products were improved steadily. Rich product structure reliable delivery guarantee and strong technical innovation
help the Company’s electronic glass business maintain its dominant position in the fierce market competition. In 2023
the Company continued to promote product technology upgrading. At present CSG electronic glass has fully covered
electronic glass products in high medium and low-end application scenarios and established a more solid market
competition foundation. CSG has long been committed to becoming the industry’s leading electronic glass material
solution provider and it will continue to develop glass-based protective materials with higher strength and
competitiveness in the field of touch display develop human-computer interaction interface materials meeting the
requirements of material interconnection in the fields of smart home vehicle display advanced medical new-energy
vehicles etc. and develop new application materials in the fields of new-energy vehicles.
13CSG Annual Report 2023
In the touch display field CSG has formed a complete touch industry chain from vacuum magnetron sputtering coating
3A (AG AR and AF) cover plate processing and fine pattern lithography processing to touch display modules. The main
business includes optical coating materials vehicle-mounted cover plates and vehicle-mounted touch panels. Among
them the optical coating material segment includes the two business types of ITO conductive glass and ITO conductive
film and the products are positioned at middle and high-end customers at home and abroad and are concentrated in
differentiated high-value-added ones. The vehicle-mounted cover plate business segment comprises a variety of products
including vehicle-mounted AG glass vehicle-mounted 2A (AR and AF) cover plates vehicle-mounted 3A cover plates
and customised cover plates of special functions. These products are supplied indirectly to renowned domestic and
international automotive brands through downstream customers of vehicle-mounted device manufacturers.Solar energy business
CSG is one of the enterprises that firstly enter the field of photovoltaic product manufacturing in China. After more than
ten years of construction operation technological transformation and upgrading CSG has created a complete industrial
chain covering the investment and operation of high-purity crystalline silicon materials silicon wafers solar cells
modules and photovoltaic power stations. The business structure of the entire industry chain enables the Company to have
a certain ability to resist risks be sensitive to the industry and be able to respond quickly to market changes in the industry.After years of technological accumulation in the photovoltaic business CSG has built three national-level scientificresearch and technology platforms: the “National and Local Joint Engineering Laboratory for Semiconductor SiliconMaterial Preparation Technology” recognized by the National Development and Reform Commission “NationalEnterprise Technology Centre” and “CNAS Accredited Laboratory”; and seven provincial-level scientific research and
technology platforms: “Hubei Semiconductor Silicon Preparation Technology Project Laboratory” and “Hubei EnterpriseTechnology Centre” recognized by the Hubei Provincial Development and Reform Commission “Hubei Silicon MaterialEngineering Technology Research Centre” recognized by the Department of Science and Technology of Hubei Province
“Hubei Semiconductor Silicon Material Technology International Cooperation Base” “Hubei Silicon MaterialEnterprise-School Joint Innovation Centre” “Guangdong Solar Photovoltaic Cell and Component EngineeringTechnology Research Centre” and “Guangdong Enterprise Technology Centre”.In 2023 facing a highly certain future for the photovoltaic industry companies and investors both within and outside the
industry increased their investments and arrangements. This led to temporary excess capacity across various processes of
the industry chain resulting in a fluctuating price downturn in the photovoltaic industry throughout the year. Subsidiaries
under CSG diligently implemented strategic decisions and arrangements made by the Group's management. The Yichang
base steadfastly transitioned to low-energy-consuming products leveraging the unique characteristics of high-purity
crystalline silicon fixtures and production factors to enhance its market competitiveness continuously. The Dongguan
base pursued a path of product differentiation tailored to its own circumstances yielding positive outcomes. The
construction of the 50000 tons/year high-purity crystalline silicon project in the Qinghai base progressed as scheduled.After shifting into operation it will further expand the Group's solar energy business boosting overall competitiveness.III. Core Competitiveness Analysis
CSG one of the most competitive and influential large-scale enterprises in China's glass industry and new energy industry
is committed to the development of energy conservation renewable and new material industry. After four decades of
development and accumulation the Company has gradually formed a comprehensive competitive advantage in terms of
products and brands technology research and development industrial chain and layout talent team and green
development.
1. Product and brand advantages
14CSG Annual Report 2023
"CSG" is a famous brand of domestic energy-saving glass ultra-thin electronic glass display and solar photovoltaic
products. Its products and technology are well-known at home and abroad. The trademarks "南玻" and "SG" held by the
Company are both "Famous Trademark of China". The Company has been listed in the "Top 50 Building Materials
Enterprises in China" and "Preferred Brand of Architectural Glass" in Door and Window Curtain Wall Industry for many
years. In 2018 "CSG" brand was recognized by the United Nations Industrial Development Organization as the fourth
batch of "International Reputation Brand". CSG’s low-E coated glass and ultra-thin electronic glass were awarded the
title of Single Champion Product by the Ministry of Industry and Information Technology and it is the only manufacturer
in the domestic glass industry that has two single champion products at the same time. The Company was awarded the
title of "Outstanding Green Manufacturing Enterprise" in the building materials industry of Guangdong Province for the
period of 2018-2022 and the title of “Shenzhen Top 500 Enterprises for 2023” (ranking No. 94).
2. Technology research and development advantages
The Company has always valued technological R&D and adopted independent R&D as its foundation since its
establishment. As of December 31 2023 the Company has had a total of 22 national high-tech enterprises 2 national-
level single champion products in the manufacturing industry 1 national-level engineering laboratory 1 national-level
enterprise technology centre 5 national enterprises with intellectual property advantages 1 national intellectual propertydemonstration enterprise 6 national-level specialized sophisticated distinctive and innovative enterprises (“LittleGiants”) 2 provincial-level expert workstation 1 provincial-level doctoral workstation 13 provincial-level enterprise
technology centres 6 provincial-level engineering technology research centres 2 provincial-level engineering research
centres 4 provincial-level demonstration enterprises for intellectual property construction 1 provincial-level intellectual
property demonstration enterprise 7 provincial-level “Little Giants” 1 provincial-level government quality award 10
provincial-level scientific and technological progress awards and 4 provincial-level patent awards. As of December 31
2023 the Company has applied for a total of 3035 patents including 1275 invention patents 1747 utility model patents
and 13 design patents. Moreover the Company has had a total of 2212 authorized patents including 465 invention patents
1734 utility model patents and 13 design patents.
3. Industrial chain and layout advantages
The Company has three complete industrial chains of energy-saving glass electronic glass and display and solar
photovoltaic glass. With the continuous improvement of the technological level of each process of the industrial chains
the Company’s industrial advantage becomes obvious; meanwhile the Company possesses a complete industry layout
with production bases located in South China North China East China Southwest China Central China and Northwest
China.
4. Talent team advantages
The Company’s advantage in talent teams is mainly reflected in two aspects: On the one hand the Company has
established a strong R&D team and a powerful R&D system. Through the construction of the core technical team
continuous R&D investment and abundant technical reserves it has constituted an important technology and innovation
support for the Company’s strategies. Meanwhile it has established Industry-University-Research cooperation actively
cooperating with domestic colleges and universities which are in advantage in silicate materials industry to accelerate
the transformation of scientific research results and to strengthen basic research; on the other hand an excellent and
stable management team is one of the most fundamental guarantees for the Company’s rapid and stable development.The Company has formed a good echelon training mechanism for professional managers. At present the Company’s
senior management team has comparative advantages in multiple aspects such as academic background professional
quality knowledge base management philosophy and experience.
5. Green development advantages
With the continuous impetus of the “dual carbon” goals the Company has taken active actions in various carbon-related
fields. For example the Company has widely conducted professional training on carbon emission management to improve
15CSG Annual Report 2023
the ability of relevant personnel to better cope with carbon-related affairs. Meanwhile the Company has actively
promoted through-life carbon footprint certification for relevant products as a preparation for downstream market
expansion of green and low-carbon products. Furthermore Hebei CSG Glass Co. Ltd. a subsidiary of the Company and
an outstanding and benchmark enterprise in the flat glass industry recognized as a pilot enterprise for carbon peaking in
the construction material industry has made efforts to explore and implement the action plans and effective routes of
carbon peaking in the industry. The relevant subsidiary of the Company has actively gotten involved in the regional pilot
market of carbon transactions to strive for a calculation method of carbon quota matching the real situation of the
Company’s production. In 2023 it was included in the emission control list with its total emissions highly consistent
with the quotas. As a pioneer of green development in the industry the Company has 9 subsidiaries being honoured as
national "Green Factories" winning itself abundant room for development.IV. Main business business analysis
1. Overview
The year 2023 saw a slow recovery in the global economy due to a combination of factors. According to the data released
by the National Bureau of statistics China’s national economy picked up in 2023. The GDP totalled RMB 126.06 trillion
increasing by 5.2% year-on-year the investment in fixed assets (excluding farmers) totalled RMB 50.30 trillion
increasing by 3.0% year-on-year the investment in real estate development totalled RMB 11.09 trillion decreasing by
9.6% year-on-year and the floor space of buildings completed was 998 million square meters increasing by 17.0% year-
on-year.Facing the complicated political and economic environments at home and abroad as well as the increasing pressure of
market competition CSG under the correct leadership of the Board of Directors adopts the goal of becoming a world-
class enterprise and firmly takes the road of high-quality development. By continuously implementing differentiated
operation constantly improving its capacity of lean production and intelligent manufacturing actively promoting project
construction optimizing its industrial layout and consolidating resource reserves the Company further strengthens its
core competitiveness.In 2023 the Company’s revenue totalled RMB 18.195 billion increasing by 20% year-on-year and its net profit reached
RMB 1.546 billion decreasing by 24% year-on-year; meanwhile the Company’s net profit attributable to shareholders
of the listed company was RMB 1.656 billion decreasing by 19% year-on-year.I. Operation of each industry of the Group
In recent years CSG has continuously promoted business optimisation strengthened its competitive advantage in
traditional energy-saving construction materials and accelerated the development of its new energy and new material
industrial sectors. The Company’s advantage in the diversified industry layout became prominent in 2023 the strong
support of its photovoltaic glass business architectural glass business and float glass business effectively diluting the
impact of cyclical fluctuations in the solar energy business.Glass business segment
Photovoltaic glass: The Company upholds the "quality first service foremost" principle leveraging its expertise in
processes and technologies to enhance the quality and overall manufacturing yield of photovoltaic glass products thus
securing a competitive edge in the industry. The Company is firmly optimistic about the long-term development of the
photovoltaic new energy industry. It continues to expand its capacity and upgrades existing kiln technologies while
ensuring consistent quality. The first kiln for the photovoltaic glass construction project in Beihai Guangxi was ignited
at the end of March 2024 and the second kiln is expected to be ignited within the same year. Additionally the upgrade
project for the photovoltaic line in Wujiang is scheduled for ignition by the end of 2024. Upon completion of these projects
16CSG Annual Report 2023
the annual capacity for photovoltaic glass will see a significant increase optimising production costs and demonstrating
further economies of scale. This lays a robust foundation for expanding market share scaling up operations and fostering
the high-quality development of the photovoltaic glass business.Architectural glass: As the golden brand of CSG the Company’s architectural glass business has been equipped with
quality service and continuous R&D capabilities that match the brand. Focusing on the continuous improvement of the
building energy-saving standards and high-rise building safety standards the Company strengthens brand building and
adheres to the customized business strategy integrating technical service marketing and R&D and manufacturing to
meet the personalized needs of domestic and foreign customers and construction projects. As the Company’s share in the
domestic high-end construction market continues to rise it also maintains a leading position in market scale and
profitability in the field of deep processing within the same industry.In 2023 despite affected by domestic and international environmental factors continuously the pressure of sales and
delivery increased year-on-year coupled with increased financing and payment pressure from domestic real estate
enterprises as well as higher risk control requirements by the Company the operation of architectural glass remained
stable. By refining the market layout the Company continued to increase the signing of high-quality projects whichresulted in the drastic year-on-year increase of the order compounding degree. Meanwhile it launched the band of “IceKirin” and gradually increased the proportion of “Ice Kirin” and other high-end products. It also enhanced cooperation in
support projects for people’s livelihood promoted digital transformation across all the production bases continued to
strengthen “Reduce Costs and Increase Efficiency” and lean operation.Meanwhile focusing on the future the Company seizes the historic opportunity of the acceleration of green building
construction. With the completion of the layout of production capacity optimization and production expansion for all
bases of architectural glass as well as the construction of new bases the Company improves the automation and
informatization level of its production lines continuously improving the production efficiency of equipment. CSG’s
production capacity for architectural glass is further released. This in combination with the Company’s product
diversification to conform with the market demand can lead to the continuous improvement of the market competitiveness
and service capability of CSG regarding architectural glass so as to increase the market share of its architectural glass
business.The national standard General Code for Building Energy Efficiency and Renewable Energy Utilization (GB55015-2021)
implemented in April 2022 mandates a 30% reduction in the average design energy consumption for newly constructed
residential buildings and a 20% reduction for public buildings. As the “14th Five-Year Plan” has proposed higher
requirements for building energy conservation CSG actively facilitated the fulfilment of the “dual carbon” goals and
responded to the requirements of the policy on building energy conservation and building emission reduction by taking
the lead in the R&D of energy-saving products. A series of innovative and world-leading products were developed such
as the “Ice Kirin” glass series thermal insulation products and BIPV products. The Company also actively participated
in the formulation and revision of a series of industry or group standards to promote the advancement of the construction
industry toward the “dual carbon” goals. In the face of the promising development prospects and the current fierce market
competition CSG implemented multiple measures such as optimizing customer service improving product quality
enhancing brand promotion and expanding sales channels for its “Ice Kirin” glass business and recorded a considerable
increase in the quantity of signed orders for the “Ice Kirin” glass in 2023. The innovation and R&D of energy-saving
products with higher energy efficiency is important to the energy conservation and emission reduction of newly
constructed buildings and vital to the energy-conservation-oriented transformation of existing buildings. In order to meet
the market demand for product innovation CSG will continue to conduct innovation so as to provide products with
higher energy efficiency for the market.Float glass: In 2023 buoyed by national policies such as the "guarantee of timely delivery of housing projects" the latter
half of the year saw an uptick in demand from downstream markets leading to increased sale volumes. Concurrently the
17CSG Annual Report 2023
Company actively pursued cost control and implemented energy-saving measures to drive down production costs. In the
current competitive market environment the Company remains committed to its strategy of offering high-end
differentiated products. As the sales and the market share of its ultra-white glass have further increased and the high-end
brand of CSG’s ultra-white “Blue Diamond” series becomes mature the Company has become a leading enterprise in
this industrial segment; moreover the proportion of the Company’s high-value-added differentiated products continues
to increase and the market share of the Company in the segment of high-grade float glass stays among the top. The
Company has intensified efforts to partner with new suppliers and strategically organised raw material procurement for
commodities to mitigate the pressure of rising procurement costs. Furthermore it has strengthened lean control over the
entire production process continuously enhancing yield rates and reducing production costs. The cold repair and technical
transformation of the second-line in Xianning Float Company had a certain impact on the Company's float glass capacity
and profitability.Electronic glass and display business segment
In 2023 the electronic glass market faced escalating supply-demand imbalances driven by a global downturn in consumer
electronics demand and persistent expansion of electronic glass capacity. This intensified industry competition driving
down product prices and reducing orders. Nevertheless CSG always recognises R&D as the core of its electronic glass
business and unremittingly adopts the development route of product upgrading with the aim of replacing imported
products with homemade products. In 2023 the Company continued to actively implement product and market upgrading
in various application fields such as intelligent electronic terminals touch control modules vehicle-mounted displays
industrial automatic control displays & commercial displays and smart homes. Thanks to these efforts the Company
maintained a stable market share for its medium-alumina and high-alumina electronic glass products.The Company's optical coating business faced challenges in output and sales volume in 2023 due to technological
advancements such as the widespread adoption of in-cell touch technology. However in its strategically important
vehicle-mounted business segment committed to building an industrial chain of electronic components for high-end
automobiles the Company continued to increase investment in R&D and new projects and maintained the differentiated
strategy of "product quality & technology first" for market competition.Solar energy business segment
The macroscopic background of the global consensus for “Green Development” and the domestic timetable of the dual
carbon goals jointly promote a new high-speed development period of the photovoltaic industry after the affordable
Internet access is comprehensively achieved. On the basis of objective analysis of its own industrial advantages and
disadvantages overall consideration of the market environment industrial development trend and the Group’s overall
industrial development plan the Company plans to launch the project of 50000 tons of high-purity crystalline silicon per
year in Haixi Prefecture Qinghai Province construction of which is accelerating as scheduled. This project upon
completion is expected to help further expand the Group’s solar energy business and enhance its overall competitiveness.The Company stays abreast of industry trends in silicon wafers solar cells modules and photovoltaic power stations
continuously tapping into internal potential to enhance technological capabilities product quality and cost
competitiveness.II. Other management workIn 2023 with the focus on the operation and development philosophy of “grasping market share controlling costsenhancing management building corporate culture and seeking development” the Company opened up a new path in
the uncertain environment so as to vigorously promote the Group’s development strategies and ensure the steady
implementation of all operation and management tasks. In order to ensure the rapid and healthy development of all its
industrial sectors the Company spared no effort to ensure production safety continued to promote differentiated
18CSG Annual Report 2023
operations and the capability of intelligent production and tightly grasped opportunities in the market. The multiple
measures it took were listed below.
1. The Company enhanced efforts to improve management-based benefit creation as the Company’s integral system under
the dual cycle of “Internal Improvement and External Expansion” with solid foundations could effectively support its
operation. Furthermore the Company continuously conducted cost management in multiple aspects such as cost
reduction and efficiency increase centralized procurement strategic procurement and engineering construction enhanced
the coordination and co-development of its teams improved efficiency in service regulation and decision-making
promoted the Group’s informatized management and construction of digital and intelligent factories gave play to the
leading role of information innovation in the improvement of the capabilities of management and operation continued to
promote management based on the optimized basic standards and promoted the construction of the five-star factories.Moreover the Company made efforts to improve the performance in safety management. It redoubled the efforts of
hidden danger investigation and rectification increased safety and environmental protection training and education and
strengthened the safety foundation for continuous safe operation. Through the implementation of a series of programs
methods and means for internal control the Company facilitated the achievement of the Company’s operation objectives
and the response to and remediation of risk incidents in the business processes. Guided by risk control and
efficiency/effect improvement and focusing on the Group’s strategies of the operation objectives of the current period
the Company promoted the improvement of its management mechanisms and comprehensively improved its capabilities
of risk control and business management.
2. The ability to conduct R&D and iteration of technologies techniques and products is always the key guarantee for the
sustainable and healthy development of an enterprise. As the core element of CSG for forming the industrial barrier of
high-value-added business lines the ability helps the Company maintain its industry-leading position. The Company has
made its comprehensive layout from six perspectives namely the organizational structure of its R&D system intellectual
property rights top-level product design high-level R&D platforms senior talent echelons and the demand for the
supporting talent resources. Based on the layout the Company has formulated the Group’s R&D strategic plan to guide
the Company’s technological innovation and its sustainable development of product R&D. The Company has also
promoted the construction of the R&D system and strengthened R&D and innovation as it has facilitated the
industrialization of its new products and the cross-industry application of its products. For example it has applied its
high-alumina electronic glass to automobiles. In 2023 the Company submitted 230 patent applications including 156 for
inventions and obtained 247 new authorized patents including 98 authorized invention patents.
3. Energy conservation and environmental protection are the lifeline to the survival and development of a glass company
and the core features of the social responsibilities of an enterprise in an industry with high energy consumption. The
Company has always been at the leading level in the industry in terms of the control of energy consumption and emissions.CSG takes the lead in the industry to realize comprehensive utilization of energy by means of waste heat power
generation and distributed photovoltaic power generation. Through comprehensive exhaust gas treatment such as
desulfurization denitrification and dust removal it achieves ultra-low emission which is far lower than the national
pollutant emission permission value. Under the condition of the same tonnage and the same kiln age the control of
energy consumption and the control of emission per unit of production capacity have always been at the leading level in
the industry. Nine subsidiaries of CSG including Wujiang CSG Glass Co. Ltd. Tianjin CSG Energy-Saving Glass Co.Ltd. Xianning CSG Energy-Saving Glass Co. Ltd. Xianning CSG Photoelectric Glass Co. Ltd. Xianning CSG Glass
Co. Ltd. Yichang CSG Photoelectric Glass Co. Ltd. Yichang CSG Polysilicon Co. Ltd. Hebei Panel Glass Co. Ltd.and Hebei CSG Glass Co. Ltd. were successfully included in the list of “Green Factory” announced by the Ministry of
Industry and Information Technology.
4. The Company further improved its organisational structure to safeguard the implementation of its strategic projects.
Specifically the Company vigorously promoted organisational talent development optimized the organisational structure
19CSG Annual Report 2023
and the corresponding staffing and improved the construction of the human resource system. Moreover the Company
optimized and adjusted the functional organisation of the headquarters and business divisions to enhance business support
as it specified the functions posts and staffing of the three-level structure of the Group’s R&D management and
continuously promoted the implementation of organisational optimization of R&D at each level. In doing so the Company
encouraged all subsidiaries of the Group to establish their own R&D department in a gradual manner so as to further
improve the R&D system of the Group.
5. The Company promoted brand construction and cultural development and used culture to facilitate ideological
unification bring its teams together and safeguarding CSG’s development. The Company successfully drove the debut
of its brand "Ice Kirin" on China Central Television (CCTV) further bolstering the brand's influence. Measures have
been implemented for brand promotion management to establish a comprehensive brand promotion management system
ensuring unified efforts in brand promotion and upholding the consistency and reputation of CSG's brand image.
2. Revenue and cost
(1) Constitution of operation revenue
Unit: RMB
20232022
Ratio in Ratio in Increase/dec
Amount operation Amount operation rease y-o-y
revenue revenue
Total of operating income 18194864366 100% 15198706998 100% 19.71%
According to industry
Glass industry 14685557284 80.71% 10056739256 66.18% 46.03%
Electronic glass & Display
15726422368.64%164308383110.81%-4.29%
industry
Solar energy and other
224832165212.36%388858276225.58%-42.18%
industries
Undistributed 400173854 2.20% 374349561 2.46% 6.90%
Inter-segment offsets -711830660 -3.91% -764048412 -5.03% -6.83%
According to product
Glass products 14685557284 80.71% 10056739256 66.18% 46.03%
Electronic glass & Display
15726422368.64%164308383110.81%-4.29%
products
Solar energy and other products 2248321652 12.36% 3888582762 25.58% -42.18%
Undistributed 400173854 2.20% 374349561 2.46% 6.90%
Inter-segment offsets -711830660 -3.91% -764048412 -5.03% -6.83%
According to region
Mainland China 16639820052 91.45% 14031154824 92.32% 18.59%
Overseas 1555044314 8.55% 1167552174 7.68% 33.19%
According to sales model
Direct sales 18194864366 100% 15198706998 100% 19.71%
(2) List of the industries products regions or sales model exceed 10% of the operating income or operating
profits of the Company
√Applicable □ Not applicable
Unit: RMB
20CSG Annual Report 2023
Increase/d Increase/d
Increase/d
ecrease of ecrease of
Operating Gross ecrease of
Operating cost operating gross
revenue profit ratio operating
revenue y- profit ratio
cost y-o-y
o-y y-o-y
According to industry
Glass industry 14685557284 11472952253 21.88% 46.03% 49.99% -2.06%
Electronic glass & Display
1572642236131369165316.47%-4.29%5.47%-7.72%
industry
Solar energy and other industries 2248321652 1668976777 25.77% -42.18% -33.35% -9.84%
According to product
Glass products 14685557284 11472952253 21.88% 46.03% 49.99% -2.06%
Electronic glass & Display
1572642236131369165316.47%-4.29%5.47%-7.72%
products
Solar energy and other products 2248321652 1668976777 25.77% -42.18% -33.35% -9.84%
According to region
Mainland China 16639820052 12884833088 22.57% 18.59% 27.83% -5.59%
According to sales model
Direct sales 18194864366 14141072171 22.28% 19.71% 28.48% -5.30%
Under the circumstances that the statistical standards for the Company’s main business data adjusted in the report period
the Company's main business data in the recent year is calculated based on adjusted statistical standards at the end of the
report period
□ Applicable √ Not applicable
(3) Whether the Company’s goods selling revenue higher than the service revenue
√Yes □ No
Industry Item Unit 2023 2022 Increase/decrease y-o-y (%)
Sales volume 10000-ton 205 55 272.73%
Photovoltaic glass Output 10000-ton 215 60 258.33%
Inventory 10000-ton 18 8 125.00%
Sales volume 10000-M2 4594 3770 21.86%
Architectural glass Output 10000-M2 4635 3811 21.62%
Inventory 10000-M2 195 153 27.45%
Sales volume 10000-ton 231 236 -2.12%
Float glass Output 10000-ton 224 243 -7.82%
Inventory 10000-ton 7 15 -53.33%
Sales volume ton 301514 268874 12.14%
Electronic glass Output ton 297593 277954 7.07%
Inventory ton 22465 26538 -15.35%
Sales volume ton 4840 8454 -42.75%
High-purity crystalline
Output ton 4946 8957 -44.78%
silicon
Inventory ton 153 254 -39.76%
Sales volume 10000-piece 18843 23946 -21.31%
Silicon wafer
Output 10000-piece 19318 23020 -16.08%
21CSG Annual Report 2023
Inventory 10000-piece 875 372 135.22%
Sales volume MW 592 540 9.63%
Solar cell Output MW 596 536 11.19%
Inventory MW 9 7 28.57%
Reasons for major changes (over 30% year-on-year) in relevant data
√ Applicable □ Not applicable
1. Photovoltaic glass: The increases in production volume sales volume and inventory were mainly due to the
establishment of new production lines in some subsidiaries.
2. Float glass: The decrease in inventory was because the quantity of sales was greater than that of production during the
year.
3. High-purity crystalline silicon: The decreases in production volume and sales volume were due to the changed
production cycle as a result of the transformation of Yichang Polysilicon’s high-purity crystalline silicon production line.
4. Silicon wafer: The increase in inventory was mainly because the production and sales rhythm in the silicon wafer
business of subsidiaries were adjusted.
(4) Fulfilment of significant sales contracts and procurement contracts signed by the Company up to the
report period
√ Applicable □ Not applicable
Fulfilment of significant sales contracts signed by the Company up to the report period
√ Applicable □ Not applicable
Unit: RMB 0000
Descriptio The amount The
Amount
n of the of sales cumulative
Total Total performed Amount to Normally Receivables
contract revenue amount of
Subject matter Name of the other party contract amount during the be performed collection
not being recognized sales
amount fulfilled report performed or not status
performed during the revenue
period
normally period recognized
LONGi Solar Technology Ltd.Zhejiang LONGi Solar Technology
Ltd. Taizhou LONGi Solar
Technology Ltd. Yinchuan LONGi
Solar Technology Ltd. Chuzhou
LONGi Solar Technology Ltd.Datong LONGi Solar Technology Not Normal
Photovoltaic glass 650000 113619 47308 536381 Yes 43339 102261
Ltd. LONGi (H.K.) Trading Limited applicable refund
LONGi (KUCHING) SDN. BHD.Xianyang LONGi Solar Technology
Ltd. Jiangsu LONGi Solar
Technology Ltd. Jiaxing LONGi
Solar Technology Ltd. Xi’an LONGi
Green Building Technology Ltd.High-purity Not Normal
Trina Solar Co. Ltd. 2121000 31964 31964 2089036 Yes 28287 28287
silicon materials applicable refund
Solar-grade raw
Not Normal
polycrystalline Customer 1 and Customer 2 999900 30832 30832 969068 Yes 27285 27285
applicable refund
silicon materials
Solar-grade raw Not
Customer 1970000 1970000 Yes
polycrystalline applicable
22CSG Annual Report 2023
silicon materials
Note: The above material contracts are long-term sales contracts signed between the Company and customers. A total supply volume
is given in such a contract the specific price is negotiated on a monthly basis and the total contract amount is subject to the final
transaction amount.Fulfilment of significant procurement contracts signed by the Company up to the report period
□ Applicable □Not applicable
(5) Constitution of operation cost
Industry and product classification
Unit: RMB
20232022
Increase/
Industry Item Ratio in Ratio in decrease
Amount operating Amount operating y-o-y
costs costs
Materials Labor
Glass industry 11472952253 81.13% 7649392465 69.49% 49.99%
wages Depreciation
Electronic glass & Display Materials Labor
13136916539.29%124558164411.32%5.47%
industry wages Depreciation
Solar energy and other Materials Labor
166897677711.80%250403245822.75%-33.35%
industries wages Depreciation
Unit: RMB
20232022
Increase/
Product Item Ratio in Ratio in decrease
Amount operating Amount operating y-o-y
costs costs
Materials Labor
Glass products 11472952253 81.13% 7649392465 69.49% 49.99%
wages Depreciation
Electronic glass & Display Materials Labor
13136916539.29%124558164411.32%5.47%
products wages Depreciation
Solar energy and other Materials Labor
166897677711.80%250403245822.75%-33.35%
products wages Depreciation
Note: The main components of operating costs include materials labor depreciation etc. In order to avoid the disclosure of business
secrets and damage the interests of the listed company and investors the operating costs are only separated and disclosed according to
the business sector and product classification of the Company.
(6) Whether the consolidated scope has changed during the report period
√ Yes □ No
How the equity int Date when the equity inter
Relationship wit The Company’s interes
Name erests were obtaine ests were obtained/the sub
h the Company t (%)
d sidiary was established
Guangdong Licheng Construction En
Subsidiary Acquired in cash March 21 2023 100%
gineering Co. Ltd.Subsidiary Guangxi CSG Mining Co. Ltd. Incorporated April 24 2023 100%
Subsidiary CSG Japan Co. Ltd. Incorporated April 26 2023 100%
Subsidiary Wuxuan Nanxin Mining Co. Ltd. Incorporated May 19 2023 60%
Qinghai CSG Photovoltaic Technolo
Subsidiary Incorporated October 18 2023 100%
gy Co. Ltd.
23CSG Annual Report 2023
Jiangyou CSG Quartz Sand Co. Lt
Subsidiary Incorporated December 8 2023 100%
d.
(7) Major changes or adjustment in business product or service of the Company in the report period
□ Applicable √ Not applicable
(8) Major customers and major suppliers
Major customers of the Company
Total sales to the top five customers (RMB) 3685320563
Proportion in total annual sales volume for top five customers 20.24%
Proportion of related party sales in total annual sales volume for top five customers 0%
Information of the top five customers of the Company
Serial Name of customer Sales volume (RMB) Proportion in total annual sales
1 Customer A 1128931842 6.20%
2 Customer B 769903350 4.23%
3 Customer C 624077405 3.43%
4 Customer D 584885129 3.21%
5 Customer E 577522837 3.17%
Total -- 3685320563 20.24%
Other statement of main customers
□ Applicable √ Not applicable
Major suppliers of the Company
Total purchase amount from the top five suppliers (RMB) 3733860756
Proportion in total annual purchase amount from the top five suppliers 22.09%
Proportion of related party sales in total purchase amount from the top five suppliers 0%
Information of the top five suppliers of the Company
Serial Name of supplier Purchase amount (RMB) Proportion in total annual purchase
1 Supplier A 913082132 5.40%
2 Supplier B 901591818 5.34%
3 Supplier C 762513460 4.51%
4 Supplier D 601974336 3.56%
5 Supplier E 554699010 3.28%
Total -- 3733860756 22.09%
Other statement of major suppliers
□ Applicable √ Not applicable
3. Expenses
Unit: RMB
24CSG Annual Report 2023
2023 2022 Increase/decrease y-o-y Note of major changes
Sales expense 317702143 313754976 1.26%
Management expense 865371137 718938905 20.37%
Financial expense 158826105 148212982 7.16%
R&D expenses 739301765 644146614 14.77%
4. R&D expenses
√ Applicable □ Not applicable
Expected impact on the
Name of the major
Purpose Progress Target Company’s future
R&D project
development
In response to the national Through the optical design To achieve technical
concept requirements of and experimental breakthroughs and product
The product has lower
energy saving green and low verification of a variety of upgrades of high-
emissivity higher
R&D of the Multi-carbon in the whole life cycle membrane structures and performance building
selection factor and
silver Low-E product of buildings Low-E products materials the product has energy-saving LOW-E
better appearance
with multi-layer infrared been developed and products to meet the needs
performance.reflection functional layer are finalized. The product has of national low-carbon
developed. excellent performance. development.Realize the autonomy of
The project is aimed at The Company aspires AR glass product process
The development of
developing colourless double- to provide the market technology cope with the
colourless double-layer AR
Development of layer AR coated glass to with AR coated glass changes of photovoltaic
coated glass has been
colourless double- reduce the impact of colour that meets architectural module application
completed and the coated
layer anti-reflection differences in coated glass on aesthetics by scenarios and solve the
glass product has been
(AR) coated glass the appearance of modules and developing colourless application limitations
certified for its excellent
to diversify the portfolio of double-layer AR caused by the appearance of
performance.CSG's AR coated glass. coated glass. coated glass color
difference.On the basis of
Improve the safety
lightweight to ensure
performance of 2.0mm
the strength Enrich the series of
2.0mm photovoltaic photovoltaic glass in extreme
The development of 2.0mm requirements of lightweight photovoltaic
glass full tempering environmental conditions
full tempered products has photovoltaic modules glass products to enhance
technology (such as strong winds snow
been completed. in extremely harsh the group's market
development hail) to ensure the stable
conditions improve competitiveness.operation of photovoltaic
product
modules.competitiveness.The successful
development of ultra-
thin photovoltaic glass
is suitable for
The development of ultra-
Develop ultra-thin glass adapt lightweight double-
The production of ultra-thin thin photovoltaic glass
to the development trend of glass components
Development of glass has reached the enhances the Group's
lightweight photovoltaic which is conducive to
ultra-thin expected goal and stable leading edge in ultra-thin
modules and enrich the reducing the
photovoltaic glass production with continuous photovoltaic glass
company's differentiated consumption of
mass production capacity. technology and creates core
product categories. resources and energy
competitiveness.and meeting the needs
of energy conservation
and environmental
protection.Develop a kiln structure
Meet the requirements Enhance the Group's design
operation process to achieve Preliminary control
Study on bottom of low carbon and and maintenance
continuous and stable measures have been carried
structure erosion of environmental capabilities for float glass
operation of the kiln and out according to the test
float glass melting protection and extend melting furnaces to ensure
significantly extend the data and the control effect is
kiln the service life of float the leading position in the
operation cycle of the higher than expected.glass kiln. float glass industry.production line.
25CSG Annual Report 2023
To realize the
The research and
industrialization of
development of glass Realize a new application
high-aluminum glass
Developed independent formula has been completed track of high aluminum
Development of high with independent
intellectual property rights of and the product performance glass widen the application
aluminum glass for intellectual property
high aluminum glass for has been verified by several scenario of high aluminum
automobile rights and provide
automobiles. rounds of laboratory and glass and avoid disorderly
lightweight and high-
client meeting the market competition in the industry.strength automotive
requirements.glass.Complete the design of film Meet the mainstream
Triple silver low radiation Improve the energy-saving
system and product color appearance needs
Classic color system glass products of classic color performance of triple silver
debugging and realize the of the market and
triple silver product system were developed to products to ensure that the
mass production of products further improve the
development meet the mainstream demand products are leading the
through various performance energy-saving index of
of the market. industry.tests. products.Develop and apply stained
Complete the design of film Take the lead in the
Research and glass for photovoltaic To meet the designers'
system and product research and development
development of integration to enhance the demand for the
debugging and realize the of photovoltaic integrated
stained glass for aesthetics of photovoltaic appearance color
mass production of products building glass and expand
photovoltaic integrated buildings and design of photovoltaic
through various performance the application scenarios of
integrated building reduce the loss of power integrated buildings.tests. energy-saving glass.generation efficiency.The reduction furnace
intelligent control system
technology upgrade has been Under the premise of
Upgrade the intelligent control
completed and the energy ensuring product This project breaks through
system of the reduction
consumption index has quality and maximum the energy consumption
furnace to achieve the
Technological reached the industry-leading output the intelligent bottleneck of the
sustainability and repeatability
upgrade of the level. The project and control system of the preparation of high purity
of the reduction furnace data
intelligent control external units jointly reduction furnace is crystalline silicon and can
and meet the requirements of
system for the declared the industry- upgraded to provide be widely used in different
digital unmanned and
reduction kiln university-research strong support for the furnace types belonging to
intelligent low-carbon
cooperation innovation and digital green the core technology of high
technology for industry
won the second prize of development of purity crystalline silicon.development.science and technology enterprises.progress of China Chemical
Society.R&D staff of the Company
2023 2022 Ratio of change
Number of R&D staff (person) 1879 1953 -3.79%
The proportion of the number of R&D staff 12.82% 13.70% -0.88%
Educational structure of R&D staff
Undergraduate 959 948 1.16%
Master 54 47 14.89%
Doctor 3 7 -57.14%
Below undergraduate 863 951 -9.25%
Age composition of R&D staff
Under 30years old 436 470 -7.23%
30~40years old 949 1008 -5.85%
Over 40years old 494 475 4.00%
Note: To facilitate investors' understanding of the Company's R&D personnel composition adjustments have been made
to the statistical standards for R&D personnel in the report period. Statistics are based on the aggregation standards for
R&D expenses for each year. R&D personnel refers to employees directly engaged in R&D activities at the end of the
report period alongside management staff and direct service staff closely related to the R&D activities.R&D investment of the Company
26CSG Annual Report 2023
2023 2022 Ratio of change
Amount of R&D investment (RMB) 754224256 691969726 9%
Ratio of the R&D investment to the operating income 4.15% 4.55% -0.40%
Amount of the capitalized R&D investment (RMB) 14922491 47823112 -68.80%
Ratio of the capitalized R&D investment to the R&D
1.98%6.91%-4.93%
investment
Reasons and effects of major changes in the composition of the company's R&D staff
□ Applicable √ Not applicable
Reason of remarkable changes over the previous year of the ratio of the total R&D investment amount to the operating
income
□ Applicable √ Not applicable
Reason of substantial change of the ratio of the R&D investment capitalization and its reasonable explanation
√ Applicable □Not applicable
Due to the completion of some R&D projects.
5. Cash flow
Unit: RMB
Item 2023 2022 Increase/decrease y-o-y
Subtotal of cash inflow from operating activities 18181609496 15830876858 14.85%
Subtotal of cash outflow from operating activities 15421820602 13873753627 11.16%
Net cash flow from operating activities (1) 2759788894 1957123231 41.01%
Subtotal of cash inflow from investment activities 54903880 3808707836 -98.56%
Subtotal of cash outflow from investment activities 4308138530 6115102337 -29.55%
Net cash flow from investment activity (2) -4253234650 -2306394501 84.41%
Subtotal of cash inflow from financing activity 3902491900 4401690981 -11.34%
Subtotal of cash outflow from financing activity 3958565009 2222287291 78.13%
Net cash flow from financing activity (3) -56073109 2179403690 -102.57%
Net increased amount of cash and cash equivalent (4) -1542756596 1837540679 -183.96%
Statement on the main factors in the major changes of relevant data
√ Applicable □ Not applicable
(1) It was mainly due to the increase in cash received from sales of goods or rendering of services.
(2) It was mainly due to the increase in cash paid to acquire fixed assets intangible assets and other long-term assets etc.
(3) It was mainly due to the increase in cash repayments of borrowings.
(4) It was mainly due to the decrease in net cash flow from financing activity.
Statement of the reasons for significant differences between the net cash flow from operating activities and the net
profit of the year during the report period
□ Applicable √ Not applicable
V. Non-main business analysis
√ Applicable □ Not applicable
27CSG Annual Report 2023
Unit: RMB
Percentage to Whether
Amount Explanation of the reason
total profits sustainable or not
Income from Mainly interest on discounted notes debt
-6610842 -0.41% No
investment restructuring etc.Impairment of assets 346737457 21.24% Mainly impairment of long-term assets etc. No
Mainly payments that cannot be made
Non-operating income 23191407 1.42% No
insurance compensation etc.Non-operating Mainly loss on the retirement of non-
13420895 0.82% No
expenditure current assets etc.VI. Asset and liability analysis
1. Significant changes in asset composition
Unit: RMB
End of 2023 Beginning of 2023
Increase or
Percentage Percentage
Explanation of
decrease in
Amount to total Amount to total significant changes proportion
assets assets
Mainly due to the
Cash at bank and
3076774218 10.13% 4604607779 17.78% -7.65% repayment of mature
on hand
corporate bonds
Mainly due to the
Accounts
1881796408 6.20% 1179992784 4.56% 1.64% increase in sales revenue
receivable
from photovoltaic glass
Inventories 1590224795 5.24% 1783941982 6.89% -1.65%
Investment
2903681050.96%2903681051.12%-0.16%
properties
Fixed assets 13145568631 43.30% 11243236175 43.40% -0.10%
Mainly due to the
Construction in increase in expenditure
432501642014.24%25203622919.73%4.51%
progress on ongoing constructions
of some subsidiaries
Mainly due to the rental
of building space and
Right-of-use assets 21637628 0.07% 9908413 0.04% 0.03%
land by some
subsidiaries
Short-term
4368535831.44%3450000001.33%0.11%
borrowings
Contract liabilities 362538795 1.19% 418051975 1.61% -0.42%
Mainly due to the
Long-term
6221648676 20.49% 4353589980 16.81% 3.68% increase in loans for the
borrowings
projects
Mainly due to the
Lease liabilities 15134562 0.05% 3564330 0.01% 0.04% increase in the leasing
business of subsidiaries
Mainly due to the
increase in inflows in the
Notes receivable 1593520494 5.25% 156943437 0.61% 4.64%
form of acceptance notes
and the increase in notes
28CSG Annual Report 2023
in pledge
Mainly due to the
Receivables
529945623 1.75% 1095412643 4.23% -2.48% consigned collection of
financing
due notes etc.Mainly due to the
maturity within one year
Non-current assets
84191224 0.28% 20000000 0.08% 0.20% of previously purchased
due within one year
large-amount certificate
of deposit
Mainly due to the
Other current assets 352066698 1.16% 108248545 0.42% 0.74% increase in overpaid
value added tax etc.Mainly due to the
transfer of the
prepayment for mining
concession from other
Intangible assets 2490530224 8.20% 1438102666 5.55% 2.65%
non-current assets to
intangible assets as the
mining concession
certificate was obtained
Mainly due to the
increase in the carry-over
Development of R&D projects of some
00%467558160.18%-0.18%
expenditure subsidiaries into
intangible assets upon
completion
Mainly due to the
Long-term prepaid
18764429 0.06% 2647939 0.01% 0.05% increase in items to be
expenses
amortized
Mainly due to the
impairment provisions
Deferred tax assets 223025031 0.73% 161489749 0.62% 0.11%
made by some
subsidiaries
Mainly due to the
transfer of the
prepayment for mining
Other non-current concession from other
3966003541.31%8566204853.31%-2%
assets non-current assets to
intangible assets as the
mining concession
certificate was obtained
Mainly due to the
Notes payable 2041353189 6.72% 994557496 3.84% 2.88%
increase in notes issued
Mainly due to the
increase in engineering
Accounts payable 3341624602 11.01% 2033542627 7.85% 3.16%
equipment and material
payables
Non-current Mainly due to the
liabilities due 1248891979 4.11% 2481433006 9.58% -5.47% repayment of mature
within one year corporate bonds
Mainly due to the
increase in notes
Other current unqualified for
4543326861.50%504072400.19%1.31%
liabilities derecognition the
issuance of electronic
debt obligation etc.Estimated 13050082 0.04% 0 0% 0.04% Mainly due to the
29CSG Annual Report 2023
Liabilities increase in mine
rehabilitation costs etc.Mainly due to the
Long-term
88204163 0.29% 129236878 0.50% -0.21% payments for finance
payables
leases
Mainly due to a low base
in the prior period and
Special reserve 1411139 0% 731580 0% 0%
the changes in the
current period
The proportion of overseas assets was relatively high
□Applicable √ Not applicable
2. Assets and liabilities measured at fair value
√ Applicable □ Not applicable
Unit: RMB
Profit and
Impairmen
loss from Cumulative Purchase Amount
t accrued
changes in changes in fair amount sold in Closing
Item Opening balance in the Other changes
fair value in value included for this this balance
current
the current in equity period period
period
period
financial assets
Investment
290368105290368105
properties
Receivables
1095412643-565467020529945623
financing
Total of the above 1385780748 -565467020 820313728
Other changes: nil
During the report period whether the company’s main asset measurement attributes changed significantly or not
□Yes √No
3. Limited asset rights as of the end of the report period
Unit: RMB
Item Limited amount Limited reason
Monetary funds 25512563 Restricted circulation of deposits freezes etc
Note receivable 1157485085 Restricted pledge
Fix assets 106982081 Limited finance lease
Total 1289979729
VII. Investment
1. Overall situation
√Applicable □ Not applicable
Investment in the report period (RMB) Investment in the same period of the previous year ( RMB) Changes
30CSG Annual Report 2023
43081385306115102337-29.55%
2. The major equity investment obtained in the report period
□ Applicable √ Not applicable
31CSG Annual Report 2023
3. The major ongoing non-equity investment in the report period
√ Applicable □ Not applicable
Unit: RMB
Reasons for
Fixed Accumulative Accumulative
not achieving
Way of asset Amount invested amount actually revenue Date of Index of Industry Progress of Expected the planned
Project name invest during the report invested by the Source of funds achieved by disclosure (if disclosure (if
investment involved project revenue progress and
ment or period end of the report the end of the applicable) applicable)
the expected
not period report period
revenue
No revenue as
Zhaoqing CSG High- the project is Announcement
Manufacturing Under 13 December
grade Automotive Glass Self-built Yes 55025636 147601326 Own funds 58000000 still in the number: 2019-
industry construction 2019
Production Line Project construction 077
period.The project has
Anhui Fengyang
been
Lightweight & High- Own funds and
completed and Announcement
permeability Panel for Manufacturing loans from Already put
Self-built Yes 615304618 3200105693 435660000 the revenue 6 March 2020 number: 2020-
Solar Energy Equipment industry financial into operation
thereof has 010
Manufacturing Base institutions
been reflected
Project
in profits.Part of the
project has
Wujiang CSG
Own funds and been
Architectural New Announcement
Manufacturing loans from Under completed and
Architectural Glass Self-built Yes 8365823 87536510 50490000 24 June 2020 number: 2020-
industry financial construction the revenue
Intelligent Manufacturing 051
institutions thereof has
Plant Construction Project
been reflected
in profits.No revenue as
Own funds and
Xi’an CSG Energy-saving the project is Announcement
Manufacturing loans from Under 7 November
Glass Production Line Self-built Yes 180889972 222583993 42220000 still in the number: 2020-
industry financial construction 2020
Project construction 070
institutions
period.
32CSG Annual Report 2023
The project has
been
Own funds and
Hebei Panel Glass Ultra- completed and Announcement
Manufacturing loans from Already put 27 March
thin Electronic Glass Line Self-built Yes 51161670 308479283 46710000 the revenue number: 2021-
industry financial into operation 2021
Construction Project thereof has 008
institutions
been reflected
in profits.The project has
been
Xianning CSG 1200T/D Own funds and
completed and Announcement
Photovoltaic Packaging Manufacturing loans from Already put 27 March
Self-built Yes 129225232 856221597 128350000 the revenue number: 2021-
Material Production Line industry financial into operation 2021
thereof has 008
Project institutions
been reflected
in profits.No revenue as
Own funds and
the project is Announcement
CSG East China Manufacturing loans from Under 27 August
Self-built Yes 4904808 7640989 still in the number: 2021-
Headquarters Building industry financial construction 2021
construction 039
institutions
period.No revenue as
CSG Guangxi Beihai Own funds and
the project is Announcement
Photovoltaic Green Manufacturing loans from Under 10 September
Self-built Yes 705147093 738360846 557640000 still in the number: 2021-
Energy Industrial Park industry financial construction 2021
construction 041
Project (Phase I) institutions
period.No revenue as
Hefei CSG Energy-saving Own funds and
the project is Announcement
Glass Intelligent Manufacturing loans from Preparatory 15 October
Self-built Yes 1196423 3204661 46660000 still in the number: 2021-
Manufacturing Industry industry financial stage 2021
preparatory 043
Base Project institutions
period.Xianning CSG Energy-
No revenue as
saving Glass Co. Ltd. Own funds and
the project is Announcement
Production Line Manufacturing loans from Under 3 December
Self-built Yes 40338112 46024610 27130000 still in the number: 2021-
Reconstruction and industry financial construction 2021
construction 051
Expansion Construction institutions
period.Project
Phase I Upgrading and Own funds and No revenue as Announcement
Manufacturing Under 25 December
Technical Transformation Self-built Yes 2396602 26691570 loans from 60210000 the project is number: 2021-
industry construction 2021
Project of Qingyuan CSG financial still in the 053
33CSG Annual Report 2023
Energy-Saving New institutions construction
Materials Co. Ltd. period.The project has
been
Dongguan Solar G6/G7 Own funds and
completed and Announcement
Line Process and Manufacturing loans from Already put 29 March
Self-built Yes 46971826 65737426 41560000 the revenue number: 2022-
Equipment Upgrading industry financial into operation 2022
thereof has 006
Project institutions
been reflected
in profits.High-purity crystalline No revenue as
Own funds and
silicon project with an the project is Announcement
Manufacturing loans from Under
annual output of 50000 Self-built Yes 2636455139 2646774148 863280000 still in the 23 June 2022 number: 2022-
industry financial construction
tons in Haixi Prefecture construction 024
institutions
Qinghai Province period.Xianning Float No. 2 No revenue as
Own funds and
Production Line (700 construction of Announcement
Manufacturing loans from Already put 9 November
tons/day) Technology Self-built Yes 145119040 145119040 38350000 the project has number: 2022-
industry financial into operation 2022
Upgrade and just been 061
institutions
Transformation Project completed.No revenue as
Anhui Fengyang 37.6 Own funds and
the project is Announcement
MW Distributed Manufacturing loans from Under 9 November
Self-built Yes 83354432 83354432 11000000 still in the number: 2022-
Photovoltaic Power industry financial construction 2022
construction 061
Generation Project institutions
period.Chengdu Float Three Sets No revenue as
Own funds and
of Standby Environmental construction of Announcement
Manufacturing loans from Already put 9 November
Protection Facilities for Self-built Yes 54638688 55247681 the project has number: 2022-
industry financial into operation 2022
Flue Gas Treatment just been 061
institutions
Construction Project completed.Total -- -- -- 4760495114 8640683805 -- -- 2407260000 0 -- -- --
34CSG Annual Report 2023
4. Financial assets investment
(1) Securities investment
□ Applicable √ Not applicable
There was no securities investment during the report period.
(2) Derivative investment
□ Applicable √ Not applicable
There was no derivative investment during the report period.
5. Use of raised fund
□ Applicable √ Not applicable
There was no use of raised fund during the report period.VIII. Sales of major assets and equity
1. Sales of major assets
□ Applicable √ Not applicable
The Company did not sell major assets during the report period.
2. Sales of major equity
□ Applicable √ Not applicable
IX. Analysis of main holding companies and joint -stock companies
√Applicable □ Not applicable
Particular about main subsidiaries and joint -stock companies which have influence on the Company's net profit by over
10%
Unit: RMB
Registered Operating
Name of company Type Main business Total assets Net Assets Operating profit Net profit
capital revenue
Production and
Yichang CSG
sales of high- 1467.98
Polysilicon Co. Subsidiary 1836144837 1335732586 1354066207 262056789 273886936
purity silicon million
Ltd.material products
Anhui CSG New
Production and
Energy Material 1750
Subsidiary sales of solar glass 5247187947 1938768694 3718776281 438567640 391745328
Technology Co. million
products
Ltd.
35CSG Annual Report 2023
Manufacture and
Chengdu CSG
Subsidiary s ales of various 260 million 857732778 569417205 1382170791 182473711 161895776
Glass Co. Ltd.special glass
Manufacture and
Xianning CSG
Subsidiary sales of various 235 million 2295851888 868550933 1663503020 144959602 142685803
Glass Co. Ltd.special glass
Manufacture and
Wujiang CSG 565.04
Subsidiary sales of various 1432299755 907583093 1925345420 141149440 127071020
Glass Co. Ltd. million
special glass
Dongguan CSG
Deep processing
Architectural Subsidiary 240 million 972676410 561958955 1146130755 134578893 120513254
of glass
Glass Co. Ltd.Yichang CSG Production and
Polysilicon Co. Subsidiary sales of display 560 million 817636507 445476253 334903252 -262346222 -220020614
Ltd. components
Particulars about subsidiaries obtained or disposed in report period
□Applicable √ Not applicable
Description of main holding and shareholding companies
In 2023 Yichang CSG Polysilicon Co. Ltd. experienced a decline in both the output sales volume and unit price of
products such as high-purity crystalline silicon resulting in a year-on-year decrease in operating results. Anhui CSG New
Energy Material Technology Co. Ltd. and Xianning CSG Glass Co. Ltd. experienced a significant boost in the output
and sales volume of photovoltaic glass as they put new production lines into operation leading to substantial growth in
operating results compared to the previous year. The operating performance of Yichang CSG Display Co. Ltd. declined
due to the downturn in the electronic consumer goods market; meanwhile a provision for long-term asset impairment
was made this year based on the results of asset impairment testing which resulted in its significant losses.X. Structured main bodies controlled by the Company
□ Applicable √ Not applicable
XI. Outlook of the Company’s future development
1. Tendency of development of the industries the Company engages
Please refer to the relevant content of "I. Particulars about the industry the Company engages in during the report period".
2. The Company’s development strategy
The Group will formulate strategic development goals and implement strategic development plans under the guidance the
national strategic goals of “dual carbon” with a focus on “low carbon and energy saving green and environmentalprotection scientific and technological innovation and intelligent manufacturing”. The Company plans to form the three
industrial clusters of energy-saving glass electronic glass and photovoltaic materials and create the three high-grade
products of multi-silver “Ice Kirin” glass high-grade electronic glass and “Blue Diamond” ultra-white glass. The
Company will integrate industrial resources strengthen the advantage of raw material resources improve technology and
R&D strength continue to enhance its core competitiveness expand market share and market influence occupy a
dominant position in the industry and comprehensively improve the credibility and influence of the CSG brand. Also it
will plan the layout of the CSG industry from a global and macro perspective accelerate the development of new
36CSG Annual Report 2023
industries and consolidate the Company’s capability to resist cyclical risks and build CSG into an internationally
influential enterprise group that is related to both the upstream and downstream portions of the glass industry and the
energy industry.
3. Business plan of the Company in 2024
* Strengthen the capability of group operation and management improve the level of fine management and professional
management and promote the implementation of such measures as cost reduction and efficiency increase management
supply chain management and lean management to ensure the completion of the Company’s operation and construction
objectives in 2024;
* Build an informatization platform for R&D management improve the qualification of the R&D innovation platform
of CSG plan the pipeline for the development of the next generation of new products and promote technological
upgrading and product iteration;
* Enhance talent management establish a remuneration incentive system that links remuneration with performance
improve the Company’s incentive mechanism strengthen employee training select and cultivate reserve cadres introduce
high-quality talents and intensify the building of talents echelon.* Strengthen capital planning control capital risks and reduce financing costs;
* Further enhance cost management and reduce various costs to improve market competitiveness;
* Steadily promote the safe construction and timely operation of projects under construction and explore the relevant
industrial chains for breakthroughs;
* Improve the safety environmental protection and duty performance capability management system and carry on with
the building of the informatization management platform for safety and environmental protection to significantly improve
safety and environmental protection management.
4. Fund demand use plan and fund source
In 2024 the Company’s capital expenditure is expected to be approximately RMB 5356 million which is mainly used
for construction of the project of lightweight & high-permeability panel for solar energy equipment and complementary
sand ore projects construction of the Qinghai high-purity crystalline silicon project technical upgrade and transformation
in all relevant industries capacity expansion etc. The main sources of funds are own funds and loans from financial
institutions.
5. Risk factors and countermeasures
In 2024 in the face of severe international and domestic political and economic development and the task of building a
“Century CSG” the Company will face the following risks and challenges:
* The international political environment still faces many uncertainties.Affected by the complicated international political environment domestic economy still faces many challenges and
uncertainties. In 2024 the Company will continue to strengthen its attention to the market timely adjust operation strategy
according to market changes and strive to achieve the annual core work objectives through steady operation.* The glass business faces fierce competition among similar products and pressure from rising price of raw materials
and fuels such as heavy alkali and natural gas and increasingly high labour cost. The photovoltaic glass industry not only
faces the risk of temporarily exacerbated overcapacity but also encounters severe homogenisation risks within the industry.Moreover it faces risks stemming from competition between various processes of the photovoltaic industry chain which
can impact demand for photovoltaic glass. With the real estate sector entering an adjustment cycle and overall investment
37CSG Annual Report 2023
declining the architectural glass industry faces the risk of intensified competition within the glass deep processing sector.The float glass industry faces the risk of temporarily decreased demand in the downstream architectural glass market. The
electronic glass industry contends with sustained overcapacity intensifying supply-demand imbalances and with
heightened competition among domestic players offering similar products. The continuous release of new capacity in the
solar energy industry will pose the risk of price declines due to temporary overcapacity. To cope with aforesaid risks the
Company will take the following measures:
A. In the photovoltaic glass segment the Company will devise targeted strategies and implement a range of robust
measures to achieve its business objectives. In terms of internal operation its core focus remains on "ensuring safety
stabilising production improving quality and reducing costs." The Company is fully committed to the stability of the
production process and the effective improvement of product quality and will unswervingly and continuously promote
cost reduction and efficiency enhancement so as to strengthen the core competitiveness. Regarding sales the Company
will vigorously pursue the strategy of "expanding markets adjusting structure reducing costs and controlling risks."
Based on industry characteristics it will optimise its product structure to match market demand and continuously advance
lean management and differentiated operations to further enhance profitability. The Company will also intensify efforts
to develop key customers thereby matching the new capacity released and enhancing industry competitiveness.Externally it will pay closer attention to the demand-supply dynamics of raw materials and timely and strategically
prepare materials to reduce the impact of the price fluctuations of raw materials on its operating results.B. In the architectural glass segment the Company will accelerate the pace of digital networked and intelligent
transformation of the manufacturing industry to reduce the consumption of manpower materials and energy. The
Company will strengthen the development of high-end market and overseas market actively respond to market changes
continuously deepen market exploitation refine market layout increase the application of new products and new
technologies improve service capability give full play to quality technology and brand advantages and at the same time
maintain the advantageous position of the Company through market-oriented extension of industrial chain.C. In the float glass segment the Company will persist in pursuing differentiated operations refining product structure
and boosting the share of high-value-added offerings. Additionally through technological upgrades the Company aims
to enhance production efficiency and lower manufacturing costs thereby consistently enhancing its competitive edge in
the industry.D. In the electronic glass and display segment the Company will continue to strengthen CSG’s brand presence for
electronic glass build a solid foundation for medium- and high-end products enhance customer recognition and stabilise
the high-end market share. In addition it will further strengthen the R&D and innovation of new technologies new
products and new applications constantly narrow the gap from international peers maintain technical leading advantage
in China and at the same time intensify efforts to explore new market applications broaden development directions in
the industry and explore more applications on the market.E. In the solar energy segment the Company will strengthen the integration of resources across the industry chain pay
attention to the price trend supply-demand relationship and terminal demands in upstream and downstream procurement
and sales increase R&D investment strengthen operation management and maintain corporate competitiveness in market
segments; keep an eye on market changes rationally adjust inventories vigorously carry out cost reduction and efficiency
increase activities implement energy saving and cost control measures and timely upgrade and replace the equipment to
improve production efficiency and ensure the Company’s benefits; and ensure continuous leadership industry-wide
through the technological and cost advantages of new production lines and the efficient and professional business
capabilities of the team.* Risk of fluctuation of foreign exchange rate: At present nearly 8.55% of the operating revenue of the Company is
from overseas and in the future the Company will further develop overseas business. Therefore the fluctuation of
exchange rate will bring certain risk to the operation of the Company. To cope with such risk the Company will settle
38CSG Annual Report 2023
exchange in a timely manner and use safe and effective risk evading instrument and product to relatively lock exchange
rate thus reducing the risk caused by fluctuation of exchange rate.XII. Reception of research communication and interview
□Applicable √Not applicable
No reception of research communication interview and other activities occurred during the reporting period.XIII. Implementation of the “Quality and Earnings Dual Improvement” Action Plan
Indicate whether the Company has disclosed the “Quality and Earnings Dual Improvement” Action Plan.□ Yes √ No
39CSG Annual Report 2023
Section IV. Corporate Governance
1.Basic Situation of Corporate Governance
In strict compliance with the requirements of the relevant laws and regulation including The Company Law Securities
Law and Rule of Governance for Listed Company the Company has been putting efforts in improving the corporate
governance strengthening management of information disclosure regulating operation activities and establishing a
modern corporate system. At present the system for corporate governance of the Company is basically sound operation
is regulated corporate governance is consummated which accord with the requirements of relevant documents on
corporate governance of listed company issued by CSRC.According to the "Company Law" and other relevant laws and regulations and the "Articles of Association" the Company
has established and improved a relatively standardized corporate governance structure and formed a decision-making
and operation management system with the shareholders' meeting the board of directors the board of supervisors and the
Company's management as the main structure. The power organs decision-making bodies supervision bodies and
managers have clear rights and responsibilities perform their respective duties and effectively monitor and balance and
perform various duties stipulated in the "Company Law" and "Articles of Association" in accordance with the law.According to the "Articles of Association" and other relevant corporate governance regulations the Company has
formulated the "Procedure Rules for Shareholders' Meeting" "Procedure Rules for the Board of Directors" "Procedure
Rules for the Supervisory Committee" "General Manager's Work Rules" and other relevant systems which provides an
institutional guarantee for the standardized operation of the corporate governance structure of the Company.The Company's "Three Committees" (General Meeting of Shareholders Board of Directors and Board of Supervisors)
operate in a standardized manner and the procedures for convening and convening meetings comply with relevant
regulations. The current directors supervisors and senior management are able to actively and effectively fulfill relevant
responsibilities and obligations. Independent directors have put forward opinions or suggestions on the company's
development decisions. The Company respects and listens to the opinions and suggestions of independent directors and
implements them in accordance with the final resolutions of the board of directors and the shareholders' meeting playing
a positive role in safeguarding the interests of the company and small and medium-sized shareholders At the same time
the Company also provides sufficient protection for the performance of independent directors and supervisors. The Board
of Directors has established four special committees namely the Strategy Committee the Audit Committee the
Nomination Committee and the Remuneration and Evaluation Committee to assist the Board of Directors in performing
relevant functions and provide professional suggestions and opinions for the Board of Directors' decision-making. The
Board of Directors and the Board of Supervisors of the Company report to the General Meeting of Shareholders on the
performance of their duties by directors and supervisors and the independent directors make a debriefing report to the
General Meeting of Shareholders. The senior management personnel have a clear division of labor clear responsibilities
and authorities and operate in compliance with laws and regulations.In strict accordance with the requirements of the Listing Rules of Shenzhen Stock Exchange and other relevant laws and
regulations the Company earnestly performs the obligation of information disclosure to ensure the authenticity accuracy
integrity and timeliness of information disclosure. The Company earnestly fulfills its information disclosure obligations
in strict accordance with the requirements of the Shenzhen Stock Exchange Listing Rules and other relevant laws and
regulations to ensure the truthfulness accuracy completeness and timeliness of information disclosure. Shanghai
Securities News Securities Daily and Juchao Website (www.cninfo.com.cn) are designated media for the Company's
information disclosure to ensure that all shareholders of the Company have equal access to the Company's business
information. The Company has established the Information Disclosure Management System and promptly improved it in
40CSG Annual Report 2023
accordance with newly issued laws and regulations clarified the standards of insider information and established inside
information insider registration system and record management system. In order to further strengthen the Company's
internal information disclosure control enhance the disclosure consciousness of relevant personnel and improve the
quality of corporate information disclosure in 2016 the Company set up information Disclosure Committee and
formulate Rules for the implementation of the information disclosure Committee. During the report period the Company
disclosed information with facticity completeness timeliness and fairness strictly fulfilled the responsibilities and
obligations of information disclosure of listed companies to ensure that investors are able to keep abreast of the Company's
operation and development strategies. There was no regulatory punishment caused by information disclosure in the report
period. Meanwhile the Company delivered the Inside Information Insider Table to Shenzhen Stock Exchange when
submitting periodic reports.The Company has seriously implemented the requirements of the relevant regulatory to cash dividends. The Company
formulated the Return plan for Shareholders of CSG Holding Co. Ltd. in the Next Three Years (2022-2024) according to
relevant regulations of the Notice of Further Implementation of Cash Dividends of the Listed Companies (ZJF No.: [2012]
37) and the Regulatory Guidelines of Listed Companies No. 3-Cash Dividends of Listed Companies issued by China
Securities Regulatory Commission further improved the Company’s decision-making and supervision mechanism for
distribution of profits and protected the interests of investors.During the report period it did not exist that the Company provided the undisclosed information to the largest shareholder.And it did not exist that non-operating fund of listed Company was occupied by the largest shareholder and its affiliated
enterprises.Whether the actual condition of corporate governance is materially different from the laws administrative regulations
and the provisions on the governance of listed companies issued by the CSRC
□Yes √ No
The actual condition of corporate governance is not materially different from laws administrative regulations and the
provisions on the governance of listed companies issued by the CSRC.II. Independency of the Company relative to the largest shareholder in aspect of businesses
personnel assets organization and finance
During the report period the Company has been absolutely independent in business personnel assets organization and
finance from its largest shareholder. The Company has an independent and complete business system and independent
management capability.
1. In terms of business: The Company owns independent purchase and supply system of the raw resources complete
production systems independent sale system and customers. The Company is completely independent from the largest
shareholder in business. The largest shareholder and its subsidiaries do not engage any identical business or similar
business as the Company.
2. In terms of personnel: The Company established integrated management system of labor personnel salaries and the
social security which were absolutely independent from its holding shareholder’s. Personnel of the managers person in
charge of the financial and other executive managers are obtained remuneration from the Company since on duty in the
Company and never received remuneration or take part-time jobs in the largest shareholder’ company and other
enterprises controlled by the largest shareholder. The recruitment and dismissal of Directors are conducted through legal
procedure and the manager has been appointed or dismissed by Board of Directors. The Board of Directors and the
Shareholders’ General Meeting have not received any interference of decisions on personnel appointment and removal
from the largest shareholder.
3. In terms of asset: the Company is able to operate business independently and enjoys full control over the production
41CSG Annual Report 2023
system auxiliary production system and facilities land use right industry property and non-patent technology owned or
used by the Company. The largest shareholder has never occupied damaged or intervened to operation on these assets.
4. In terms of organization: The Company possessed sound corporate governance structure established Shareholders’
General Meeting Board of Directors Supervisory Board appointed Senior management and fixed related function
departments. The Company had been totally independent from its largest shareholder in organization structure. The
Company has its own office and production sites that are different from those of the largest shareholder. The largest
shareholder has not in any way affected the independence of the Company's operation and management.
5. In terms of finance: The Company has set up independent financial department established independent accounting
calculation system and financial management system (included management system of its subsidiaries). The financial
personnel of the Company didn’t take part-time jobs in units of largest shareholder or its subordinate units. The Company
has independent bank accounts separated from the largest shareholder. The Company is independent taxpayer paid taxes
independently according the laws and didn’t pay mixed taxes with the largest shareholder. The financial decision-making
of the Company was independent and the use and management of funds were independent. The Company never offered
guarantee to their largest shareholder and its subordinate units and other related party. The largest shareholder and its
related have never occupied or disguisedly occupied the capital of the Company.III. Horizontal competition
□ Applicable √ Not applicable
IV. Information on the annual general meeting and extraordinary general meeting held
during the report period
1. The General Meeting of Shareholders during the report period
Ratio of
Meeting Date of
Session of meeting Type investor Meeting resolution
date disclosure
participation
Extraordinary Announcement on Resolutions of
The First Extraordinary
General March 16 March 17 the First Extraordinary General
General Shareholders’ 24.34%
Shareholders’ 2023 2023 Shareholders’ Meeting of 2023
Meeting of 2023
Meeting （Announcement No.: 2023-005）
Annual Announcement on Resolutions of
Annual General Shareholders’ General June 28 June 29 Annual General Shareholders’
24.92%Meeting of 2022 Shareholders’ 2023 2023 Meeting of 2022（AnnouncementMeeting No.: 2023-023）
Extraordinary Announcement on Resolutions of
The Second Extraordinary
General October 17 October 18 the Second Extraordinary General
General Shareholders’ 25.35%
Shareholders’ 2023 2023 Shareholders’ Meeting of 2023
Meeting of 2023
Meeting （Announcement No.: 2023-034）
Extraordinary Announcement on Resolutions of
The Third Extraordinary
General November November the Third Extraordinary General
General Shareholders’ 24.14%
Shareholders’ 29 2023 20 2023 Shareholders’ Meeting of 2023
Meeting of 2023
Meeting （Announcement No.: 2023-039）
2. The preference shareholders whose voting rights have been restored request the convening of an
extraordinary general meeting
□ Applicable √ Not applicable
42CSG Annual Report 2023
V. Directors supervisors and senior executives
1. Basic information
Amount of Amount of
Shares held shares shares Reason for
Start dated End date Other Shares held at
at period- increased decreased increase or
Name Sex Age Title Working status of office of office changes period-end
begin in this in this decrease
term term (share) (Share)
(Share) period period of shares
(Share) (Share)
Chairman of the
Chen Lin Female 52 Currently in office 2016/11/19 1623065 1623065
Board
Shen Chengfang Male 58 Director Currently in office 2022/08/03
Independent
Zhu Qianyu Female 49 Currently in office 2019/04/10
Director
Independent
Zhang Min Male 47 Currently in office 2022/11/25
Director
Independent
Shen Yunqiao Male 48 Currently in office 2023/03/16
Director
Cheng Jinggang Male 43 Director Currently in office 2020/05/21
Yao Zhuanghe Male 65 Director Currently in office 2020/05/21
Cheng Xibao Female 42 Director Currently in office 2016/01/21
Chairman of the
Supervisory
Li Jianghua Male 47 Board Currently in office 2019/03/27
Employee
Supervisor
Meng Lili Female 46 Supervisor Currently in office 2020/05/21
Employee
Dai Pingsheng Male 42 Currently in office 2021/07/08
Supervisor
Secretary of the
Party
CommitteeExec Currently in office 2022/05/16
utive Vice
He Jin Male 52 897600 897600
President
Acting CEO Currently in office 2022/08/15
Vice President Currently in office 2022/05/16
Wang Wenxin Female 46 Chief Financial 154600 154600
Currently in office 2022/05/16
Officer
Secretary of the
Chen Chunyan Female 42 Currently in office 2022/09/26 49271 49271
Board
Independent 2023/03/
Zhu Guilong Male 60 Leaving office 2017/05/02
Director 16
Total -- -- -- -- -- -- 2724536 0 0 0 2724536 --
During the report period whether there was any resignation of directors and supervisors and dismissal of senior
executives during their terms of office
√ Yes □ No
The Board of Directors of the Company received a written resignation report submitted by Independent Director Mr. Zhu
Guilong on 23 November 2022. Mr. Zhu Guilong resigned as the Company’s Independent Director due to personal career
reasons. Mr. Zhu Guilong’s resignation report took effect on 16 March 2023.
43CSG Annual Report 2023
Changes in directors supervisors and senior executives of the company
√Applicable □ Not applicable
Name Position Type Date Reason
Shen Yunqiao Independent Director Be elected 2023-03-16 By election of Independent Director
Zhu Guilong Independent Director Post leaving 2023-03-16 Resignation voluntarily
2. Post-holding
Major professional backgrounds and working experience of directors supervisors and senior executives and their major
responsibilities in the Company at present
Chen Lin: At present she is Chairman of the Supervisory Committee of Foresea Life Insurance Co. Ltd. and Chairman
of the Board of the Company.Shen Chengfang: He took the posts of Chief Actuary of Ping An Life Insurance Company of China Ltd. and Chief
Actuary and Deputy General Manager of Foresea Life Insurance Co. Ltd. At present. he is General Manager and
Executive Director of Foresea Life Insurance Co. Ltd. and Director of the Company.Zhu Qianyu: At present she is an associate professor and a supervisor of masters at the Renmin University of China and
a researcher at the Institute for Rural Economy and Finance Institute for National Development and Strategies and
Institute for Carbon Peak and Neutrality of the Renmin University of China. She has undertaken more than ten research
projects funded by the National Natural Science Foundation of China the National Social Science Fund of China the
Social Science Fund of Beijing the National Development and Reform Commission the Ministry of Science and
Technology of the People’s Republic of China and the Ministry of Industry and Information Technology of the People’s
Republic of China and had over 50 papers published by foreign SSCI and SCI journals and domestic journals.Additionally her scientific research achievements won the first second and third prizes for social science research
achievements from the National Ethnic Affairs Commission of the People’s Republic of China the third prize for excellent
results from the National Bureau of Statistics the second prize in the 13th Beijing Outstanding Achievement Award in
Philosophy and Social Science and the third prize in the Award for Excellent Achievements in Scientific Research in
Institutes of Higher Education of the Ministry of Education (Humanities and Social Science). She is serving as a project
training and evaluation expert at the World Bank the National Rural Revitalization Administration and the Head Office
of Agricultural Bank of China and a reviewer of the National Natural Science Foundation of China. She is also
Independent Director of Chongqing Brewery Co. Ltd. Bank of Guiyang Co. Ltd. and the Company.Zhang Min: He served as a lecturer an associate professor a supervisor of doctors and Deputy Director of the Department
of Accounting of Renmin Business School at the Renmin University of China as well as Independent Director of Beijing
SPC Environment Protection Tech Co. Ltd. At present he is a professor a supervisor of doctors and Director of the
Department of Accounting of Renmin Business School at the Renmin University of China. Concurrently he is
Independent Director of SDIC Capital Co. Ltd. BYD Co. Ltd. and the Company.Shen Yunqiao: He served as an assistant professor at the Faculty of Law Macau University of Science and Technology a
legal adviser for Guangzhou Nansha New Zone and the China (Guangdong) Pilot Free Trade Zone Nansha Area and
Independent Director of Guangdong Delian Group Co. Ltd. At present he is an associate professor and a supervisor of
doctors at the Faculty of Law and Director of the Research Centre for Arbitration and Dispute Resolution Macau
University of Science and Technology. He is also Independent Director of the Company. Concurrently he is Independent
Director of Shenzhen Utimes Intelligent Equipment Company Limited and Hunan Nucien Pharmaceutical Co. Ltd.Director of the Commercial Law Institute of China Law Society and Legislative Council Institute of China Law Society
an off-campus supervisor of postgraduates and a researcher of the Asia-Pacific Institute of Law Renmin University of
China Deputy Director of the Asia-Pacific Arbitration Research Committee of the Asia-Pacific Institute of Law Renmin
44CSG Annual Report 2023
University of China an export of the Expert Pool for Offshore Services of Pazhou Artificial Intelligence and Digital
Economy Law Identification and Commercial Mediation Centre Haizhu District Guangzhou Deputy Secretary General
of the Law Committee of the Council for the Promotion of Guangdong-Hong Kong-Macao Cooperation a member of the
100-Member Group of the Shandong Foreign Arbitration Service of the Department of Justice Shandong Vice Chairman
of Macau Association for Legal Professionals an arbitrator of the Consumer Mediation and Arbitration Centre Macao
SAR Government Consumer Council and Vice Chairman of Renmin University of China Alumni Association of Macao.Moreover he is an arbitrator of more than 20 arbitration institutions including the China International Economic and
Trade Arbitration Commission Beijing Arbitration Commission Shanghai International Arbitration Centre Shanghai
Arbitration Commission Shenzhen Court of International Arbitration Guangzhou Arbitration Commission Zhuhai Court
of International Arbitration Foshan Arbitration Commission Hainan International Arbitration Court Nanjing Arbitration
Commission Qingdao Arbitration Commission and Xi’an Arbitration Commission.Cheng Jinggang: He took the posts of Senior Credit Analyst of the Fixed Income Department of Funde Sino Life Insurance
Co. Ltd. and Senior Manager of the Credit Evaluation Department of Sino Life Asset Management Co. Ltd. At present
he is Joint Director of the Asset Management Centre of Foresea Life Insurance Co. Ltd. and Director of the Company.Yao Zhuanghe: He took the posts of Deputy Director of the Department of Food Science and Engineering at South China
University of Technology Deputy General Manager and General Manager of Guangdong United Food Enterprise Centre
Director of Guangdong Yuehua International Trade Group Deputy General Manager of Guangdong Guangye Economic
Development Group Director and General Manager of Guangdong Guangye Investment Consulting Co. Ltd. Director
and Deputy Party Committee Secretary of Guangdong Guangye Environmental Construction Group (former Guangdong
Guangye Real Estate Group). At present he is Director of the Company.Cheng Xibao: She took the posts of Manager Vice President and Executive Vice President of the Financial Department
and President Assistant Vice President and Senior Vice President of Shenzhen Baoneng Investment Group Co. Ltd.Director of Foresea Life Insurance Co. Ltd. Supervisor of Guizhou Baoneng Automobile Co. Ltd. Vice President of
Baoneng Motor Group Co. Ltd. and Executive Vice President of Baoneng City Development and Construction Group
Co. Ltd. At present she is Senior Vice President of Shenzhen Baoneng Investment Group Co. Ltd. Supervisor of
Xinjiang Qianhai United Property & Casualty Insurance Co. Ltd. and Director of Baoneng Motor Group Co. Ltd. Qoros
Automobile Co. Ltd. Shenzhen Baoneng Travel Co. Ltd. and the Company.Li Jianghua: He took the posts of Assistant General Manager of the Operation Service Department and Deputy General
Manager of the Public Development Department of the Information Management Centre of Foresea Life Insurance Co.Ltd. Deputy General Manager of the IT Department of Xinjiang Qianhai United Property & Casualty Insurance Co. Ltd.and General Manager of the Integrated Financial Development Department of the Information Management Centre of
Foresea Life Insurance Co. Ltd. At present he is Chairman of the Supervisory Committee and Director of the Information
Management Department of the Company.Meng Lili: At present she is Deputy Director of the Human Resources Centre General Manager of the Office of the
Board of Directors and Employee Supervisor of Foresea Life Insurance Co. Ltd. and Supervisor of the Company.Dai Pingsheng: He took the posts of Financial Manager of Dongguan CSG Solar Glass Co. Ltd. Deputy Manager
Assistant Director and Deputy Director of the Financial Management Department of CSG and Vice President of the
Architectural Glass Division of CSG. At present he is Assistant President Director of the Strategic Investment
Department and Employee Supervisor of the Company.He Jin: He took the posts of General Manager of Shenzhen CSG Float Glass Co. Ltd. Vice President of Float Glass
Division General Manager of Dongguan CSG Solar Glass Co. Ltd. General Manager of Chengdu CSG Glass Co. Ltd.General Manager of Qingyuan CSG Energy Saving New Materials Co. Ltd. Assistant President of the Company and
President of Flat Glass Division and Vice President of the Company. At present he is Secretary of the Party Committee
Acting Chief Executive Officer Executive Vice President and Chairman of the Management Committee of the Company.
45CSG Annual Report 2023
Wang Wenxin: She took the posts of Assistant President Director of the Financial Management Department and
Executive Vice President of CSG. At present she is Vice President and Chief Financial Officer of the Company.Chen Chunyan: She took the posts of Director of the Stock Affairs Department Stock Affairs Manager and Assistant
Director of the Office of the Board of Directors of CSG. At present she is Secretary of the Board of Directors and Director
of the Office of the Board of Directors of the Company.Post-holding in shareholder’s unit
√Applicable □ Not applicable
Received
remuneration
Start dated of End date of
Name Name of shareholder’s unit Position in shareholder’s unit from
office term office term
shareholder’s
unit or not
Chairman of Supervisory
Chen Lin Foresea Life Insurance Co. Ltd. May 2012 Yes
Board
General Manager August 2018
Shen Chengfang Foresea Life Insurance Co. Ltd. Yes
Executive Director July 2019
Deputy Director of the Asset
April 2012 February 2023
Management Center
Cheng Jinggang Foresea Life Insurance Co. Ltd. Yes
Co-director of the Asset
February 2023
Management Center
Deputy Director of Human
January 2021
Resources Center
General Manager of the
Meng Lili Foresea Life Insurance Co. Ltd. Yes
Office of the Board of July 2019
Directors
Employee Supervisor June 2016
Note of post-holding in shareholder’s unit N/A
Post-holding in other units
√ Applicable □ Not applicable
Receive
Date of Date of
Positions in remuneratio
Name Unit name commencement of termination of
other units n from other
office term office term
units or not
Associate
Renmin University of China March 2010 Yes
Professor
Independent
Chongqing Brewery Co. Ltd. May 2022 Yes
Zhu Director
Qianyu Independent
Kingfa SCI.&TECH. Co. Ltd. January 2021 December 2023 Yes
Director
Independent
Bank of Guiyang Co. Ltd. February 2024 Yes
Director
Renmin University of China Professor June 2010 Yes
Independent
BYD Co. Ltd. September 2020 Yes
Director
Zhang
Independent
Min SDIC Capital Co. Ltd. September 2019 Yes
Director
Beijing SPC Environment Protection Independent
October 2019 May 2023 Yes
Tech Co. Ltd. Director
Macau University of Science and Associate
Shen July 2015 Yes
Technology Professor
Yunqiao
Shenzhen Utimes Intelligent Equipment Independent January 2022 Yes
46CSG Annual Report 2023
Co.ltd. Director
Independent
Hunan Nucien Pharmaceutical Co. Ltd. June 2023 Yes
Director
Independent
Guangdong Delian Group Co. Ltd. May 2021 September 2023 Yes
Director
Shenzhen Baoneng Investment Group Senior Vice
November 2020 Yes
Co. Ltd. President
Director December 2017 No
Baoneng Motor Group Co. Ltd.Cheng Vice President September 2022 June 2023 No
Xibao Xinjiang Qianhai United Property &
Supervisor September 2016 No
Casualty Insurance Co. Ltd.Qoros Automobile Co. Ltd. Director December 2017 No
Shenzhen Baoneng Travel Co. LTD. Director September 2019 No
Note of post-holding in other units N/A
Punishment of securities regulatory authority in the last three years to the Company’s current and retired directors
supervisors and senior management during the report period
□ Applicable √ Not applicable
3. Remuneration of directors supervisors and senior executives
Decision-making procedures recognition basis and payment for directors supervisors and senior executives
1. Decision-making procedures: The allowances for independent directors external directors from non-shareholder’s unit
are planned and proposed by the Remuneration & Assessment Committee of the Board and approved by the Shareholders’
General Meeting after deliberation of the Board. Remuneration for senior executives is proposed by the Remuneration &
Assessment Committee of the Board and decided by the Board after discussion.
2. Confirmation basis of remuneration: The allowances for independent directors and external directors are confirmed
based on industry standards and real situation of the Company. The remuneration for senior executives implements
floating reward mechanism with reference to basic salary and business performance. Bonus for performance rewards is
withdrawal by proportion quarterly according to return on equity and based on the total net profit after taxation.
3. Actual remuneration payment: The allowances for each of the Company’s independent directors external director from
non-shareholder’s unit are RMB 0.3 million per year paid by actual month of service. The total remuneration for directors
supervisor and senior executives in the report period was RMB 18.2805 million.Remuneration of directors supervisors and senior executives of the company during the report period
Unit: RMB 0000
Total Received
remuneration remuneration
Post-holding
Name Sex Age Title obtained from from related
status
the Company party of the
before taxation Company or not
Currently in
Chen Lin Female 52 Chairman of the Board 0 Yes
office
Currently in
Shen Chengfang Male 58 Director 0 Yes
office
Currently in
Zhu Qianyu Female 49 Independent Director 30 No
office
Zhang Min Male 47 Independent Director Currently in 30 No
47CSG Annual Report 2023
office
Currently in
Shen Yunqiao Male 48 Independent Director 23.75 No
office
Currently in
Cheng Jinggang Male 43 Director 0 Yes
office
Currently in
Yao Zhuanghe Male 65 Director 30 No
office
Currently in
Cheng Xibao Female 42 Director 0 Yes
office
Chairman of the Supervisory Board Currently in
Li Jianghua Male 47 212.21 No
Employee Supervisor office
Currently in
Meng Lili Female 46 Supervisor 0 Yes
office
Currently in
Dai Pingsheng Male 42 Employee Supervisor 190.68 No
office
Secretary of the Party CommitteeVice Currently in
He Jin Male 52 806.39 No
president，executive vice president officeCurrently in
Wang Wenxin Female 46 Vice President Chief Financial Officer 381.18 No
office
Currently in
Chen Chunyan Female 42 Secretary of the Board 117.59 No
office
Leaving
Zhu Guilong Male 60 Independent Director 6.25 No
office
Total -- -- -- -- 1828.05 --
Other information note
□ Applicable √ Not applicable
VI. Directors’ performance of duties during the report period
1. Board of directors in the report period
Session Meeting date Date of disclosure Resolution of the meeting
For details please refer to Juchao Website
The Interim Meeting of(www.cninfo.com.cn): “Announcement on Resolutionthe Ninth Board of February 27 2023 February 28 2023of the Interim Meeting of the Ninth Board of Directors”
Directors
(Announcement No.: 2023-001)
For details please refer to Juchao WebsiteThe 11th Meeting of the (www.cninfo.com.cn): “Announcement on ResolutionApril 24 2023 April 26 2023Ninth Board of Directors of the 11th Meeting of the Ninth Board of Directors”
(Announcement No.: 2023-012)
For details please refer to Juchao Website
The Interim Meeting of(www.cninfo.com.cn): “Announcement on Resolutionthe Ninth Board of April 24 2023 April 26 2023of the Interim Meeting of the Ninth Board of Directors”
Directors
(Announcement No.: 2023-019)
For details please refer to Juchao Website
The Interim Meeting of(www.cninfo.com.cn): “Announcement on Resolutionthe Ninth Board of June 5 2023 June 6 2023of the Interim Meeting of the Ninth Board of Directors”
Directors
(Announcement No.: 2023-021)
For details please refer to Juchao Website
The 12th Meeting of theAugust 25 2023 August 29 2023 (www.cninfo.com.cn): “Announcement on ResolutionNinth Board of Directorsof the 12th Meeting of the Ninth Board of Directors”
48CSG Annual Report 2023
(Announcement No.: 2023-028)
For details please refer to Juchao Website
The Interim Meeting of(www.cninfo.com.cn): “Announcement on Resolutionthe Ninth Board of August 29 2023 August 31 2023of the Interim Meeting of the Ninth Board of Directors”
Directors
(Announcement No.: 2023-030)
For details please refer to Juchao Website
The Interim Meeting of(www.cninfo.com.cn): “Announcement on Resolutionthe Ninth Board of September 27 2023 September 29 2023of the Interim Meeting of the Ninth Board of Directors”
Directors
(Announcement No.: 2023-031)
The Interim Meeting of
The Third Quarter Report 2023 was reviewed and
the Ninth Board of October 27 2023 -
approved
Directors
For details please refer to Juchao Website
The Interim Meeting of(www.cninfo.com.cn): “Announcement on Resolutionthe Ninth Board of November 13 2023 November 14 2023of the Interim Meeting of the Ninth Board of Directors”
Directors
(Announcement No.: 2023-036)
2. Attendance of directors at the board of directors and shareholders’ meeting
Attendance of directors at the board of directors and shareholders' meeting
Number of Failure to
Number of Number of Number of
board meetings Number of personally attend
Meetings attendances of Number of attendance of
Name of director that should be Spot board meetings
Attended by board meeting absence General
attended in this Attendances successively
Communication by proxy Meeting
report period twice
Chen Lin 9 2 7 0 0 No 4
Shen Chengfang 9 1 8 0 0 No 4
Zhu Qianyu 9 1 8 0 0 No 4
Zhang Min 9 1 8 0 0 No 4
Shen Yunqiao 8 1 7 0 0 No 3
Cheng Jinggang 9 1 8 0 0 No 4
Yao Zhuanghe 9 0 9 0 0 No 4
Cheng Xibao 9 0 9 0 0 No 4
Zhu Guilong 1 0 1 0 0 No 0
Note to failure to attend the board meeting successively twice
Not applicable
3. Objections raised by directors on matters related to the Company
Whether directors raised any objection to the relevant matters of the Company
√ Yes □ No
Name of
the Matter to which the director objected Details of the objection
director
The Work Report of the Board of Directors for 2022 the 2022 A negative vote was cast. For reasons please
Cheng Annual Report and Summary the Financial Final Report 2022 the refer to the Announcement on Resolution of the
Xibao Proposal on Profit Distribution for 2022 the Internal Control 11th Meeting of the Ninth Board of Directors
Evaluation Report 2022 and the Proposal on the Development of (Announcement No.: 2023-012) dated April 26
49CSG Annual Report 2023
Asset Pool Business in 2023 reviewed at the 11th meeting of the 2023 at http://www.cninfo.com.cn.Ninth Board of Directors on April 24 2023.A negative vote was cast. For reasons please
refer to the Announcement on Resolution of the
Cheng The First Quarter Report 2023 reviewed at the interim meeting of
Interim Meeting of the Ninth Board of Directors
Xibao the Ninth Board of Directors on April 24 2023.
(Announcement No.: 2023-019) dated April 26
2023 at http://www.cninfo.com.cn.
Explanati
ons of the
directors For details please refer to the announcements disclosed by the Company at http://www.cninfo.com.cn.for their
objections
4. Other notes to duty performance of directors
Whether the directors’ suggestions on the Company have been adopted
√Yes □ No
Notes to the adoption of or a failure to adopt directors’ suggestions on the Company
During the report period the current directors of the Company strictly followed the Company Law Securities Law
Shenzhen Stock Exchange Listing Rules Guidelines for Self-discipline and Supervision of Listed Companies No. 1-
Standardized Operation of Listed Companies on the Main Board Measures for the administration of independent directors
of listed companies and other laws and regulations as well as the Articles of Association and other relevant systems to
attend the Board of Directors and General Meeting of Shareholders of the Company conscientiously perform duties and
provide comments or suggestions on decisions for the Company’s development. The Company respected and listened to
directors’ comments and suggestions and implemented them according to the final resolutions of the Board of Directors
and the General Meeting of Shareholders.VII. Duty performance of special committees under the Board of Directors in the report period
Important
Other
Number of comments Specific
Name of the duty
About the members meetings Meeting date Meeting content and objections
Committee perfor
held suggestions (if any)
mance
proposed
The proposals Proposal on
Chairman of the Withdrawing Provisions for Asset
Committee: Chen Lin. Impairment Proposal on Profit
Committee members:
Strategy Distribution for 2022 Proposal on
Shen Chengfang 1 April 14 2023 Approved.Committee Cheng Jinggang Shen the Development of Asset Pool
Yunqiao and Zhu Business in 2023 and Proposal for
Qianyu. the 2023 Guarantee Plan were
reviewed and approved.Chairman of the The Proposal on the Changes in
committee: Zhang Accounting Policies the Financial
Min. Final Report 2022 and the
Audit April 14 2023 Approved.Committee members: 5 Internal Control Evaluation Report
Committee
Shen Yunqiao Zhu 2022 were reviewed and
Qianyu Chen Lin and approved.Cheng Xibao. April 21 2023 Matters on the First Quarter Approved.
50CSG Annual Report 2023
Report 2023 was reviewed and
approved.Matters on the Semi-annual
August 15 2023 Financial Report 2023 was Approved.reviewed and approved.Matters on the Third Quarter
October 24
Report 2023 was reviewed and Approved.
2023
approved.Matters on the Appointment of the
November 10
Audit Institution of 2023 was Approved.
2023
reviewed and approved.Chairman of the
committee: Shen The Matters on Auditing the
Remuneration Yunqiao. Remuneration of Directors
and Assessment Committee members: 1 April 14 2023 Supervisors and Senior Executives Approved.Committee Zhang Min Zhu of CSG in 2022 was reviewed and
Qianyu Chen Lin and approved.Cheng Jinggang.Chairman of the
committee: Zhu Matters on the By-election of
Qianyu Independent Director for the Ninth
February 23
Committee members: Board of Directors of the Approved.
2023
Zhu Guilong Zhang Company was reviewed and
Min Chen Lin and approved.Nomination Shen Chengfang.
2
Committee Chairman of the
committee: Zhu
Qianyu
The Work of Directors in 2022
Committee members: April 14 2023 Approved.was reviewed and approved.Shen Yunqiao Zhang
Min Chen Lin and
Shen Chengfang.VIII. Work Summary of the Supervisory Committee
Did the Supervisory Committee find any risk involved in performing the supervision activities in the report period
□ Yes √ No
The Supervisory Committee had no objection to the supervision matters during the report period.IX. Employees
1. Number Professional Composition and Education Background of Employees
Number of employees in the parent company (person) 476 note
Number of employees in major subsidiaries of the Company (person) 14185
Total number of employees (person) 14661
Total number of employees received salaries in the period (person) 14661
Number of retired employees whose costs borne by the parent
0
company and its main subsidiaries (person)
Professional composition
Category of profession composition Number of profession composition (person)
Production personnel 9976
51CSG Annual Report 2023
Salesman 822
Technician 2558
Financial personnel 157
Administrative personnel 1148
Total 14661
Education background
Category of education background Number (person)
Doctor 5
Master 174
Undergraduate 3492
Junior college 2801
Degree below junior college 8189
Doctor 14661
Note: Among them there are 278 employees sent by the headquarters to the subsidiaries.
2. Staff remuneration policy
In 2023 the Company continued to emphasize the principle of “Performance Orientation” in compensation management
strengthened the application of organizational performance results and individual performance results and advocated that
salary incentives should be inclined to high-performing organizations and high-performing individuals to improve the
work enthusiasm of employees thereby enhancing overall organizational performance and achieving business objectives.
3. Staff training plan
The Company has always attached great importance to the talent team construction and staff training and development.Within the Group's Human Resources Department dedicated training modules have been established and dedicated staff
and funds are earmarked to support the growth and literacy enhancement of employees.The Company has established training and development systems for employees at different levels including the
"Navigation Series" designed for management across different tiers and the "Star Plan" aimed at nurturing talent from
campus recruits to elites. Additionally it has developed personalised training and development programmes for diverse
professionals with adjustments made to the training plan according to the business plan every year. This approach aims
to stimulate the drive of employees enhance the competitiveness of the enterprise and provide a strong guarantee for the
development of CSG Group.In 2023 in response to the objective of "enhancing refined and specialised management and promoting cost reduction
and efficiency improvement management supply chain management and lean management to ensure the achievement of
the business and construction targets for 2023" as outlined in the business plan the Company planned and implemented
the "Lean Production Management" training series. These sessions targeted heads of subsidiaries heads responsible for
production and heads of production departments. To ensure widespread influence and implementation all third-phase
trainees were mandated to participate in the train-the-trainer sessions resulting in approximately 1000 participants in
total. This initiative effectively promoted the adoption of lean production across the Group.In 2024 in addition to the continuation of the "Navigation Series" "Star Plan" and specialised training programmes the
Company will place particular emphasis on nurturing elites in pivotal roles as well as technical talent. It will also continue
to deepen the scientific and systematic operation of training and development so as to energise promote management
and increase benefits and achieve a win-win situation for the growth of employees and the development of the enterprise.
52CSG Annual Report 2023
4. Labor outsourcing
□ Applicable √ Not applicable
X. Profit Distribution and Reserve Capitalization
Preparation implementation or adjustment of the policy for profit distribution especially the policy for cash dividend
distribution in the report period
√Applicable □ Not applicable
The profit distribution plan for 2022 was approved by Annual General Shareholders’ Meeting of 2022 held on 28 June
2023 which distributed distributing cash dividend of RMB 1.5 (tax included) for every 10 shares to all shareholders.
Notice of the distribution was published on China Securities Journal Securities Times Shanghai Securities News
Securities Daily and Juchao Website (www.cninfo.com.cn)on 7 July 2023 and the profit had been distributed.Special explanation on cash dividend policy
Satisfy regulations of General Meeting or requirement of Article of Association (Yes/No) Yes
Well-defined and clearly dividend standards and proportion (Yes/No) Yes
Completed relevant decision-making process and mechanism (Yes/No) Yes
Independent directors perform duties completely and play a proper role (Yes/No) Yes
If the company does not pay a cash dividend it shall disclose the specific reasons and the
N/A
next steps to enhance the return level of investors
Minority shareholders have ample opportunities and their legitimate rights and interests are
Yes
effectively protected (Yes/No)
Condition and procedures are compliance and transparent while the cash bonus policy
N/A
adjusted or changed (Yes/No)
The Company gains profits in the report period and the retained profit of parent company is positive but no plan of cash
dividend proposed
□ Applicable √ Not applicable
Proposal of profit distribution preplan or share conversion from capital public reserve in the report period
√Applicable □ Not applicable
Distributing bonus shares for every 10 shares (share) 0
Distributing cash dividend for every 10 shares (tax included) (RMB) 2.5
Shares added for every 10-share base (Share) 0
Equity base for distribution preplan (share) 3070692107
Total amount distribution in cash (RMB) (tax included) 767673027
Cash dividend amount in other ways (such as repurchasing shares) (RMB) 0
Total cash dividends (including other methods) (RMB) 767673027
Profit available for distribution (RMB) 3023013128
Cash distributing accounted for the proportion of the total amount of profit
100%
distribution (including other methods)
Particular about cash dividend in the period
If the Company’s development stage is not easy to distinguish but there are major capital expenditure arrangements
when the profit is distributed the proportion of cash dividends in this profit distribution should be at least 20%.Details of proposal of profit distribution or share conversion from capital public reserve
53CSG Annual Report 2023
According to the financial report audited by Grant Thornton Zhitong Certified Public Accountants LLP the net profit
attributable to equity holders of the Company in consolidated statement was RMB 1655614446 in 2023 and the net
profit of the parent company’s financial statements was RMB 1754292970.Since profit distribution bases on the distributable profit of parent company the Company took 10% of the net profit
as stationary surplus reserve which was RMB 175429297 based on the net profit RMB 1754292970 of parent company
statement 2023. The allocation for Shareholders in 2023 was RMB 3023013128.After comprehensively considering the external macroeconomic situation the Company's earnings financial
condition cash flows distributable profit shareholder returns etc. and also taking into account its own actual operation
and development situation and accordingly assessing the Company's capital requirements for normal production and
operation in order to better reward the shareholders and allow all shareholders to share the growth of the Company the
Company intends to distribute cash dividend of RMB 2.5 (tax included) for every 10 shares to all shareholders based on
3070692107 shares of the total current share capital and the total distribution amount is RMB 767673027 (including
tax). The aforesaid cash dividend amount to be distributed accounts for 46.37% of the net profit attributable to the
Company’s shareholders in the consolidated financial statements in the year. For 2023 no bonus shares will be given and
no capital stock will be converted from provident fund. Where any change occurs to the Company’s total share capital
during the period from the disclosure date of this profit distribution preplan to the registration date of the implementation
of the equity distribution the Company intends to maintain the same cash dividend per share and adjust the total
distribution amount accordingly. The actual amount of the cash dividend distributed will be determined according to the
total share capital on the registration date of the Company’s implementation of the profit distribution plan.The profit distribution plan complies with the “Company Law” “Listed Company Supervision Guidelines No. 3-CashDividends for Listed Companies” (Revised in 2023) the “Articles of Association”and the Company’s shareholder return
plan and other relevant regulations. It is in line with the Company’s actual situation and future development plans as well
as taking into account the interests of shareholders.The above profit distribution preplan must be reviewed and approved by the 2023 Annual General Meeting of
Shareholders of the Company.XI. Implementation of the Company’s Equity Incentive Plan Employee Stock Ownership Plan
or Other Employee Incentive Measures
□ Applicable √ Not applicable
During the report period the Company had no equity incentive plan employee stock ownership plan or other employee
incentive measures and the implementation.XII. Construction and Implementation of the Internal Control System during the Reporting
Period
1. Construction and Implementation of the Internal Control System
During the report period the Company established a sound and complete internal control management system in
accordance with the requirements of the Company Law the Securities Law the Basic Norms for Enterprise Internal
Control and other internal control regulatory rules oriented by risk management and operated it effectively. It
strengthened and standardized its internal control which ensured the standardized operation of the Company and improved
the management level and efficiency of the Company promoting the sustainable development of the Company and
protecting the legitimate rights and interests of investors.
2. Particular case found involving material defects in the internal control during the reporting period
□Yes √No
54CSG Annual Report 2023
XIII. Management and Control of the Subsidiaries during the Report Period
During the report period by establishing an effective internal control mechanism and implementing the internal control
management plan the internal operation supervision of subsidiaries was strengthened; by establishing a sound internal
control system of subsidiaries the implementation and continuous improvement was promoted; by carrying out process
monitoring and special evaluation the process risk management of subsidiaries was strengthened; by organizing the
internal control publicity and training of subsidiaries a good internal control environment was created; by supervising
the key businesses of subsidiaries the legal compliance reliability of financial reports asset safety and operation
efficiency of subsidiaries was reasonable guaranteed.XIV. Internal Control assessment Report or Internal Control Audit Report.
1. Assessment Report of the Internal Control
Disclosure date of full text of self-
April 26 2024
appraisal report of internal control
Disclosure index of full text of self- More details found in “Report of Internal Control of CSG for year of 2023”
appraisal report of internal control published on Juchao Website (www.cninfo.com.cn)
The ratio of the total assets of the
units included in the scope of
evaluation to the total assets of the 91%
Company’s consolidated financial
statements
The ratio of the operating income of
the units included in the scope of
evaluation to the operating income of 97%
the Company’s consolidated
financial statements
Standards of Defects Evaluation
Category Financial Reports Non-financial Reports
Major defects: Major defects:
A. Fraud of directors supervisors and A. Major decision-making mistakes
senior management; caused by decision-making process
B. Ineffective control environment; of key business;
C. Invalid internal supervision; B. Serious violation of state laws
D. Major internal control defects and regulations;
found and reported to the C. Serious brain drain of senior and
management but haven’t been middle management and or
corrected after a reasonable time; personnel at key technological
E. Material misstatements are found posts;
by the external audit but haven’t been D. Major or significant defects
Qualitative criteria found in the process of internal found in the internal control
control; evaluation have not been rectified
F. Financial reports submitted during and reformed;
the reporting period completely E. The company’s major negative
cannot meet the needs and are news frequently appears on media;
severely punished by regulatory Significant defects:
agencies; A. Big deviation of execution caused
G. Other major defects that may by executive routine of key business;
affect the report users’ correct B. Regulatory authorities impose
judgment. large amount of fines because the
Significant defects: violation of laws and regulations;
A. Defects or invalidation of C. Defects or invalidation of
55CSG Annual Report 2023
important financial control important business’ internal control
procedures; procedures;
B. Significant misstatements are Common defects: Other control
found by the external audit but defects except for major defects and
haven’t been found in the process of significant defects.internal control;
C. Financial reports submitted during
the reporting period have mistakes
frequently;
D. Other significant defects that may
affect the report users’ correct
judgment.Common defects: Other control
defects except for major defects and
significant defects.Major defects:
A. Amount of direct property loss:
Major defects: the direct loss amount is equal to or
A. Amount of net profit affected by greater than 30 million yuan;
misstatements (based on consolidated B. Group’s reputation: major
statements): amount affected by negative news spreads in numerous
misstatements is equal to or greater business areas or is widely reported
than 3% of net profit and the absolute by national media and causes
amount is no less than 30 million significant damages to the corporate
yuan; reputation which takes more than
B. Amount of assets and liabilities six months to be restored.affected by misstatements (based on Significant defects:
consolidated statements): amount A. Amount of direct property loss:
affected by misstatements is equal to the direct loss amount is equal to or
or greater than 1% of total assets. greater than 20 million yuan but less
Significant defects: than 30 million yuan;
A. Amount of net profit affected by B. Group's reputation: negative
Quantitative standard misstatements (based on consolidated news spreads inside the industry or
statements): not belong to major is reported or focused by local
defects and amount affected by media and causes certain damages
misstatements is equal to or greater to the corporate reputation which
than 2% of net profit and the absolute takes more than three months but
amount is no less than 20 million less than six months to be restored.yuan; Common defects:
B. Amount of assets and liabilities A. Amount of direct property loss:
affected by misstatements (based on defects except for major and
consolidated statements): amount significant defects.affected by misstatements is equal to B. Group’s reputation: negative
or greater than 0.5% of total assets news spreads within the group and
but less than 1% of total assets.causes minor damages to the
Common defects: Defects except for
corporate reputation which takes
major and significant defects.less than three months to be
restored.Amount of significant defects in
0
financial reports
Amount of significant defects in
0
non-financial reports
Amount of important defects in
0
financial reports
Amount of important defects in non-
0
financial reports
56CSG Annual Report 2023
2. Audit report of internal control
√Applicable □ Not applicable
Deliberations in Internal Control Audit Report
According to Guidelines of Enterprise Internal Control Audit and the relevant requirements of CICPA auditing
standards Grant Thornton Zhitong Certified Public Accountants LLP audited the effectiveness of internal control over
financial statements of the Company up to 31 December 2023 issued GTCNSZ（2024）441A014345 Internal Control
Audit Report and made the following opinions: Grant Thornton Zhitong Certified Public Accountants LLP thought that CSG
Holding Co. Ltd. maintained effective internal control over financial statements in all major aspects according to the
Fundamental Norms of Enterprise Internal Control and relevant rules on December 31 2023.Disclosure of internal control audit report Disclosure
Date of disclosing the internal control audit reports April 26 2024
More details can be found in 2023 Internal Control Audit
Disclosure index of internal control audit report Report of CSG released on Juchao Website
(www.cninfo.com.cn)
Type of the auditor’s opinion Standard unqualified opinion
Whether there are major flaws in the non-financial report
No
or not
Whether the CPAs firm issued an Audit Report on Internal Control with non-standard opinion or not
□Yes √ No
Whether the Audit Report on Internal Control from the CPAs firm is in consistent with the Self-appraisal Report from
the Board or not
√ Yes □ No
XV. Rectification of the Problems Found in the Self-inspection during the Special Campaign to
Improve the Governance of Listed Companies
Not Applicable
57CSG Annual Report 2023
Section V. Environment and Social Responsibility
I. Major environmental issues
Whether the listed company and its subsidiaries belong to the key pollutant discharge units announced by the
environmental protection department
√ Yes □ No
Environmental protection related policies and industry standards
The Company implemented the Environmental Protection Law of the People’s Republic of China the Law of the People’s
Republic of China on the Prevention and Control of Air Pollution the Law of the People’s Republic of China on the
Prevention and Control of Water Pollution the Law of the People’s Republic of China on the Prevention and Control of
Noise Pollution the Environmental Protection Tax Law of the People’s Republic of China and other relevant
environmental protection laws and regulations and implemented the Emission Standard of Air Pollutants for Flat Glass
Industry the Electronic Glass Working Air Pollutant Emission Standard the Integrated Emission Standard of Air
Pollutants the Sewage Integrated Emission Standards the Environmental Noise Emission Standards at the Boundary of
Industrial Enterprises and other national industry and local pollutant discharge standards.Administrative license for environmental protection
The construction projects of each subsidiary carried out environmental impact assessment work and obtain EIA approval
in strict accordance with the requirements of the Environment Impact Assessment Law of the People’s Republic of China
and the Catalogue of Classified Management of Environmental Impact Assessment of Construction Projects. During the
construction of the project the construction of pollution prevention and control facilities shall be carried out in strict
accordance with the requirements of the project “Three Simultaneous” and put into production and use at the same time
as the main project. During the trial production period the inspection and acceptance shall be organized in accordance
with the relevant regulations on environmental protection acceptance of the completion of the construction project in
order to ensure that the construction project completes the inspection and acceptance work before it is officially put into
operation.All subsidiaries have obtained the pollutant discharge permit within the validity period and regularly submitted the
implementation report of pollutant discharge permit.Industry emission standards and specific conditions of pollutant emission involved in production and operation activities
Name of
Type of main main Number
Name of Emission
pollutants and pollutants Way of of Exhaust vent Emission standard Approved total Excessive
company or concentration/ Total emission
characteristic and emission exhaust distribution of pollutants emission emission
subsidiary intensity
pollutants characteristi vent
c pollutants
Particulates: Particulates:
Dust ≤30mg/m3
Emission Standard 21.174t 93.251t/a
Xianning CSG Continuous/ Production of Air Pollutants for Particulates: Particulates:
Air pollutants Soot 54 ≤25mg/m3 N/A
Glass Co. Ltd. intermittent plant area Flat Glass Industry 21.174t 93.251t/a
(GB26453-2011)
SO2 ≤200mg/m3 241.98t 636.51t/a
58CSG Annual Report 2023
NOx ≤350mg/m3 341.19t 1113.89t/a
Particulates: Particulates:
Dust ≤20mg/m3
15.914t 142.114t/a
Emission Standard
Particulates: Particulates:
Chengdu CSG Soot Continuous/ Production ≤20mg/m3 of Air Pollutants for
Air pollutants 38 15.914t 142.114t/a N/A
Glass Co. Ltd. intermittent plant area Flat Glass Industry
SO2 ≤200mg/m3 (GB26453-2011) 84.285t 1136.917t/a
NOx ≤350mg/m3 409.647t 1989.609t/a
Particulates: Particulates:
Dust ≤10mg/m3
9.074t 19.92t/a
Ultra Low Emission
Standard of Air Particulates: Particulates:
Hebei CSG Soot Continuous/ Production ≤10mg/m3
Air pollutants 19 Pollutants for Flat 9.074t 19.92t/a N/A
Glass Co. Ltd. intermittent plant area
Glass Industry
SO2 ≤50mg/m3 36.9476t 99.63t/a
(DB13/2168-2020)
NOx ≤200mg/m3 152.579t 398.55t/a
Emission Standard
of Air Pollutants for
Dust Intermittent 37 30mg/m3 8.86t 76.91t
Flat Glass Industry
(GB26453-2011)
Technical
Soot 15mg/m3 8.86t 76.91t
Wujiang CSG Production Guidelines for
Air pollutants N/A
Glass Co. Ltd. SO plant area 2 50mg/m3
Emergency 74.01t 238.28t
Emission Reduction
Continuous 2
in Key Industries in
Heavy Pollution
NOx 200mg/m3 408.15t 818.04t
Weather (2020
Revision)
Particulates: Particulates:
Dust ≤20mg/m3
8.08t 34.85t/a
Emission Standard Particulates: Particulates:
Dongguan CSG Soot ≤30mg/m3
Continuous/ Production of Air Pollutants for 8.08t 34.85t/a
Solar Glass Co. Air pollutants 22 N/A
intermittent plant area Flat Glass Industry
Ltd. SO2 ≤400mg/m3 147.9t 300.99t/a (DB44-2159-2019)
NOx ≤550mg/m3 315.58t 535.67t/a
Particulates: Particulates:
Dust ≤30mg/m3
0.603t 16.4225t/a
Emission Standard
Particulates: Particulates:
Hebei Panel Soot Continuous/ Production ≤10mg/m3
of Air Pollutants for
Air pollutants 8 Electronic Glass 0.603t 16.4225t/a N/A
Glass Co. Ltd. intermittent plant area
SO ≤50mg/m3 Industry (GB29495-2 1.842t 87.7t/a
2013)
NOx ≤200mg/m3 10.67t 105.1t/a
Particulates: Particulates:
Dust ≤20mg/m3 Emission Standard
1.827t/a 17.656t/a
Xianning CSG of Air Pollutants for
Continuous/i Production Particulates: Particulates:
Photoelectric Air pollutants Soot 6 ≤15mg/m3 Electronic Glass N/A
ntermittent plant area 1.827t/a 17.656t/a
Glass Co. Ltd. Industry (GB29495-
SO2 ≤10mg/m3 SO2: 0.22t/a SO2: 65.6t/a
2013)
NOx ≤330mg/m3 NOx: 56.86t/a NOx: 163.81t/a
Dongguan CSG pH 6~9 Guangdong / /
Water
Architectural Intermittent 1 Sewage vent Province Water N/A
pollutants
Glass Co. Ltd. COD 27mg/L Pollutant Emission 0.72t/a 5.4t/a
59CSG Annual Report 2023
Ammonia Limit (DB44/26-
0.244mg/L 0.001t/a 0.6t/a
nitrogen 2001)
pH 6~9 / /
Sewage Integrated
Tianjin CSG
Water Emission Standards
Energy-Saving COD Intermittent 2 Sewage vent ≤500mg/L 9.436t 500t/a N/A
pollutants (Level 3 Standard
Glass Co. Ltd.Ammonia DB12/356-2018)
≤45mg/L 1.291t 45t/a
nitrogen
pH 6~9 / /
Wujiang CSG
Sewage Integrated
East China Water
COD Intermittent 1 Sewage vent ≤500mg/L Emission Standards 17.98t 40.592t/a N/A
Architectural pollutants
(GB8978-1996)
Glass Co. Ltd. Ammonia
≤45mg/L 0.851t 1.00444t/a
nitrogen
Guangdong
Province Water
COD ≤70mg/L Pollutant Emission 1.055t 2.44t/a
Limit (DB44/26-
Water
2001)
pollutants
Pollutant Emission
Sewage
Standard for
Dongguan CSG NOx vent/ ≤30mg/m3 2.279t 33.15t/a
Intermittent 20 Battery Industry N/A
PV-tech Co. Ltd. production
(GB30484-2013)
plant area
VOC Emission
Standard for
Furniture
Air pollutants VOCS ≤30mg/m3 0.491t 1.93t/a
Manufacturing
Industry
(DB44/814-2010)
COD ≤200mg/L Emission Standards 21.23t 333.7314t/a
Water
of Pollutants for
pollutants pH 6~9 Inorganic Chemical / /
Sewage
Yichang CSG Industry (GB31573-
vent/
Polysilicon Co. NOx Intermittent 8 ≤240mg/m3 2015) and 0.677t 38.28t/a N/A
production
Ltd. Integrated Emission
Air pollutants plant area
Standard of Air
Particulates ≤120mg/m3 5.56t 32.7423t/a
Pollutants
(GB16297-1996)
Treatment of pollutants
All subsidiaries have built pollution prevention and control facilities in accordance with the environmental impact
assessment documents of construction projects and relevant specifications and adopted air pollution control process such
as electrostatic precipitator + SCR denitrification + semi-dry desulfurization + bag dust removal ceramic filter cartridge
desulfurization denitrification and dust removal integration bag dust removal and water treatment process such as
neutralization + precipitation fluidized bed and biological oxidation for which the technologies used were all in linewith the requirements of the “Guidelines for Feasible Technologies for Pollution Prevention and Control in GlassManufacturing Industry” and other documents. In 2023 the pollution control facilities were in good operation and the
pollutants were discharged stably up to the standard. The air pollutant emission concentrations of most of the subsidiaries
were lower than 50% of the emission standard and enjoyed the preferential policy of halving environmental tax. The
pollutant emissions of many subsidiaries reached and implemented local ultra-low emission standards.Emergency response plan system of environment incident
60CSG Annual Report 2023
In accordance with the national requirements all subsidiaries prepared environmental emergency response plans
organized expert evaluation and filed with the local environmental protection department as required and conducted the
emergency drill against environmental emergency as planned. No major environmental emergency occurred in 2023.Environmental self-monitoring scheme
The subsidiaries have built and operated on-line monitoring devices for waste water and exhaust gas in accordance with
national laws and regulations environmental impact assessment documents of construction projects and the requirements
of their replies regularly carried out comparison and review of the effectiveness of on-line monitoring facilities and
entrusted a third-party unit to carry out manual environmental monitoring to comprehensively monitor the pollutant
discharge. The monitoring frequency is implemented in accordance with relevant monitoring technical guidelines or
pollutant discharge permits.Investment in environmental governance and protection and payment of environmental protection tax
All subsidiaries have built pollution control facilities in accordance with the requirements of environmental impact
assessment and maintained the stable operation of these facilities to ensure their simultaneous operation with production
equipment. Considerable energy and funds are invested in pollution control every year to ensure the stable discharge of
pollutants up to the standard and reduce pollution emission as much as possible. Many subsidiaries have reached ultra-
low emission standards. All subsidiaries have made regular emission declarations and paid environmental taxes to the
local tax authorities in full and on time in accordance with the requirements of the Environmental Protection Tax Law.Measures taken to reduce carbon emissions during the report period and their effects
√ Applicable □Not applicable
The Company has continuously strengthened the comprehensive utilization and management of resources and energy
actively fulfilled the corporate social responsibility taken various measures to save energy and reduce carbon emissions
making our own contributions to the national goal of “Carbon Peaking” and “Carbon Neutrality”. The Group’s Operation
Department has specially established an energy management team which was responsible for supervising the energy
consumption management of various subsidiaries and promoted the energy consumption per unit product and carbon
emission per unit product of the Group’s various products to reach the advanced level in the industry. At present the
energy consumption level of most glass melting furnaces in the flat glass business of CSG has reached the advanced level
stipulated by the national standard. At the same time CSG has always paid attention to the utilization of waste heat in
flat glass factories. Its first waste heat power plant was put into operation as early as 2009 and each production base has
built waste heat boilers and waste heat power stations; CSG has been actively developing photovoltaic power plants since
2012 most of which have photovoltaic power stations on the roofs of factories. In 2023 CSG’s waste heat power
generation and photovoltaic power generation totalled about 502 million kWh equivalent to reducing carbon dioxide
emissions by more than 286300 tons.Administrative penalties caused by environmental protection issues during the report period
Impact on the
Name of the
Reason for the Particulars of production and Remediation measures
Company or Particulars of the violation
penalty the penalty operation of the of the Company
subsidiary
Company
Chengdu It violated The humidity meter of the No significant Replaced the damaged
A fine of
CSG Glass Article 24 online monitoring impact on humidity meter of the
RMB 20000
Co. Ltd. Paragraph 1 of equipment was damaged. operations. online monitoring
61CSG Annual Report 2023
the Law of the The baseline value of the equipment; adjusted the
People's baseline oxygen content in baseline value of the
Republic of fuel gas and the default baseline oxygen content
China on the value of the chimney cross- in fuel gas and the
Prevention and sectional area failed to be chimney cross-sectional
Control of adjusted after the software area according to the
Atmospheric upgrade of the online reality; conducted
Pollution. monitoring equipment. The comparative detection
comparison frequency on reports of particulate
the particulate matter matters in the kilns of
detection reports for the lines 1 2 and 3 as
kilns of lines 1 2 and 3 did required; repaired the
not meet the requirements. damaged hose of the
The hose of the peristaltic peristaltic pump of the
pump of the automatic automatic online flue
online fuel gas monitoring gas monitoring
equipment for lines 2 and 3 equipment for lines 2
was damaged. The and 3; ensured as
temperature of the heating required that the
tracer of the online temperature of the
monitoring equipment for heating tracer of the
the exhaust ducts of the online monitoring
kilns of lines 2 and 3 was equipment for the
insufficient. exhaust ducts of the
kilns of lines 2 and 3
reaches 120℃.Other environmental information that should be disclosed
Nil
Other relevant environmental protection information
Nil
Environmental incidents in the listed company
In 2023 no environmental incidents occurred.II. Social responsibility
The 2023 Annual Social Responsibilities Report of CSG is the 16th social responsibility report released by the Company
consecutively. Focusing on the year of 2023 the report systemically described the concrete actions of the Company to
actively perform its social responsibilities and its efforts to implement the “Scientific Development Perspective” build
up a harmonious society and advance the sustainable development of economy and society. See the full report on
www.cninfo.com.cn.III. Consolidate and expand the achievements of poverty alleviation and rural revitalization
During the report period the Company and its subsidiaries actively carried out social welfare and poverty alleviation
activities. For details see the 2023 Annual Social Responsibilities Report of CSG disclosed on www.cninfo.com.cn.
62CSG Annual Report 2023
Section VI. Important Events
I. Implementation of commitment
1. Commitments completed by the actual controllers the shareholders the related parties the purchasers
the Company or the other related parties during the report period and those hadn’t been completed execution
by the end of the report period
√Applicable □ Not applicable
Type of Commitment Commitment Implementati
Commitments Promisee Content of commitments
commitments date term on
Commitments for
Not Applicable
Share Merger Reform
Foresea Life Insurance Co.Ltd. Shenzhen Jushenghua Co.Ltd. and Chengtai Group Co. By the end of
Ltd. issued detailed report of the report
Commitment equity change on 29 June 2015 During the period the
Foresea Life of horizontal in which they undertook to period when above
Insurance Co. Ltd competition keep independent from CSG in Foresea Life
shareholders
Commitments in report of the
Shenzhen affiliate aspects of personnel assets remains the
of acquisition or equity 2015-6-29 Company had
Jushenghua Co. Transaction finance organization set-up and largest
change strictly
Ltd. and Chengtai and business as long as Foresea Life shareholder carried out
Group Co. Ltd. capital Insurance remained the largest of the their
occupation shareholder of CSG. Company promises.Meanwhile they made
commitment on regularizing
related transaction and avoiding
industry competition.Commitments in assets
Not Applicable
reorganization
Commitments in initial
public offering or re- Not Applicable
financing
Equity incentive
Not Applicable
commitment
Other commitments for
medium and small Not Applicable
shareholders
Other commitments Not Applicable
Completed on
Yes
time(Yes/No)
If the commitments is
not fulfilled on time
Not applicable
explain the reasons and
the next work plan
Note : Shenzhen Jushenghua Co. Ltd. transferred its 86633447 unrestricted tradable A shares of CSG Group to its wholly-owned
sub-subsidiary Zhongshan Runtian Investment Co. Ltd. through agreement transfer on March 16 2020. Zhongshan Runtian Investment
Co. Ltd. is obliged to continue to fulfill the commitments made by Shenzhen Jushenghua Co. Ltd. As of the end of the report period
63CSG Annual Report 2023
the above-mentioned shareholders had strictly fulfilled the relevant commitments.
2. If there are assets or projects of the Company which has profit forecast and the report period is still in
forecasting period the Company should explain reasons why they reach the original profit forecast
□ Applicable √ Not applicable
II. Particulars about non-operating fund of listed company which is occupied by controlling
shareholder and its affiliated enterprises
□ Applicable √ Not applicable
III. Illegal external guarantee
□ Applicable √ Not applicable
The Company had no illegal external guarantee during the report period.IV. Explanation from the Board of Directors for the latest “Non-standard audit report”
□ Applicable √ Not applicable
V. Explanation from Board of Directors Supervisory Committee and Independent Directors
(if applicable) for “Non-standard audit report” of the period that issued by CPA
□ Applicable √ Not applicable
VI. Explanation of changes in accounting policies accounting estimates or correction of
significant accounting errors compared with the financial report of the previous year
√ Applicable □ Not applicable
The content and reason of accounting policy change Approval procedures
In November 2022 the Ministry of Finance issued Interpretation No. 16 of the Accounting
Standards for Business Enterprises (C.K. [2022] No. 31) (hereinafter referred to as
"Interpretation No. 16"). Interpretation No. 16 stipulates that for single transactions that are not
business combinations that affect neither accounting profit nor taxable income (or deductible
losses) at the time the transaction occurs and where the initial recognition of assets and liabilities
results in taxable temporary differences and deductible temporary differences of equal amounts
should in accordance with the No. 18 of the Accounting Standards for Business Enterprises -
On April 24 2023 the Board of
Income Taxes and other relevant regulations be recognised as deferred income tax liabilities and
Directors of the Company
deferred income tax assets respectively at the time of the transaction. For transactions effected
reviewed and passed the Proposal
between the beginning of the earliest period presented in the financial statements that adhered to
on Accounting Policy Changes.the said regulations for the first time and the date of implementation of the aforementioned
regulations enterprises should in accordance with the said regulations adjust the cumulative
effect to the opening retained earnings of the earliest period presented in the financial statements
and other related financial statement items. The aforementioned accounting treatment regulations
shall come into force as of January 1 2023. The Group's implementation of the aforementioned
changes in accounting estimates has no significant impact on the financial statements dated
December 31 2022 and December 31 2023 or the financial statements for 2023.
64CSG Annual Report 2023
VII. Description of changes in consolidation statement’s scope compared with the financial
report of the previous year
√ Applicable □Not applicable
How the equity int Date when the equity inter
Relationship wit The Company’s interes
Name erests were obtaine ests were obtained/the sub
h the Company t (%)
d sidiary was established
Guangdong Licheng Construction En
Subsidiary Acquired in cash March 21 2023 100%
gineering Co. Ltd.Subsidiary Guangxi CSG Mining Co. Ltd. Incorporated April 24 2023 100%
Subsidiary CSG Japan Co. Ltd. Incorporated April 26 2023 100%
Subsidiary Wuxuan Nanxin Mining Co. Ltd. Incorporated May 19 2023 60%
Qinghai CSG Photovoltaic Technolo
Subsidiary Incorporated October 18 2023 100%
gy Co. Ltd.Jiangyou CSG Quartz Sand Co. Lt
Subsidiary Incorporated December 8 2023 100%
d.VIII. Engaging and dismissing of CPA firm
CPA firm engaged
Grant Thornton Zhitong Certified Public Accountants
Name of domestic CPA firm
LLP
Remuneration for domestic CPA firm (RMB 0000) 270
Continuous life of auditing service for domestic CPA firm 1
Name of domestic CPA Su Yang Yang Hua
Continuous life of auditing service for domestic CPA Su Yang (1 year) Yang Hua (1 year)
Name of overseas CPA firm (if any) N/A
Continuous life of auditing service for overseas CPA firm (if any) N/A
Name of overseas CPA (if any) N/A
Continuous life of auditing service for overseas CPA (if any) N/A
Whether changed accounting firms in this period or not
√ Yes □No
Whether changed accounting firms during the audit or not
□ Yes √No
Whether changed accounting firms will carry out the approval procedures or not
√ Yes □No
Detailed explanations on the replacement and change of the CPA firm
i. Approval procedures performed
On November 10 2023 the Audit Committee of the Ninth Board of Directors convened an interim meeting. At the
meeting the proposal Matters Regarding the Engagement of the Auditor for 2023 was reviewed and approved.Subsequently the Proposal on the Engagement of the Auditor for 2023 was approved by the interim meeting of the Ninth
Board of Directors on November 13 2023 and then by the Third Extraordinary General Shareholders' Meeting of 2023
on November 29 2023 respectively consenting to engage Grant Thornton Zhitong Certified Public Accountants LLP as the
Company's auditor for 2023. The auditor shall be responsible for auditing the Company's annual financial reports internal
65CSG Annual Report 2023
control and related services. The term shall be one year. The auditor's fee for 2023 was determined to be RMB 3 million
(unchanged from that of the previous year) through negotiations adhering to fair and reasonable principles considering
factors such as the Company's business scale industry required audit personnel workload and the fee standards of the
CPA firm. This fee included the financial audit fee of RMB 2.7 million and the internal control audit fee of RMB 0.3
million.ii. Information on the previous CPA firm and the audit opinion for previous year
The Company's former CPA firm Asia Pacific (Group) CPAs (Special General Partnership) had been serving the
Company for six consecutive years. In the previous year their audit opinion on the Company's financial report was
Standard and unqualified. There are no instances in which the Company dismisses the previous CPA firm after engaging
it to perform certain audit work.iii. Reasons for changing the CPA firm
Considering that Asia Pacific (Group) CPAs (Special General Partnership) had been serving the Company for multiple
consecutive years and taking into account the Company's business development and its needs of audit work the Company
changed the CPA firm and engaged Grant Thornton Zhitong Certified Public Accountants LLP as its auditor for 2023.Appointment of internal control auditing accounting firm financial consultant or sponsor
√ Applicable □ Not applicable
Grant Thornton Zhitong Certified Public Accountants LLP was engaged as audit institute of internal control for the Company
in the report period and contracted charges was RMB 0.30 million (cost of business trips and accommodation at its own
expense).IX. Delisting after the disclosure of the annual report
□ Applicable √ Not applicable
X. Issues related to bankruptcy and reorganization
□ Applicable √ Not applicable
There were no bankruptcy or restructuring related matters during the reporting period of the company.XI. Significant lawsuits and arbitrations
√ Applicable □ Not applicable
Recognised
Amount
as estimated Result and Judgement Date of
Basic information involved Progress Index of disclosure
liabilities or impact execution disclosure
(RMB 0000)
not
Plaintiff: Zhongshan Announcements on
Runtian Investment The first Company Involved
Co. Ltd. instance 1 October Lawsuits on
Defendant: CSG The first judgment 2022 http://www.cninfo.com.cn
Holding Co. Ltd. instance rejected the (Announcement No.:
Not
Case overview: The judgment had lawsuit request 2022-056)
0 No applicable
plaintiff filed a been passed. of the plaintiff Announcement on the
lawsuit with the The plaintiff Zhongshan Progress of Companies
court to confirm the appealed Note. Runtian 12 August Involving Litigation on
resolutions of the Investment 2023 http://www.cninfo.com.cn
General Meeting of Co. Ltd. (Announcement No.:
Shareholders as 2023-026)
66CSG Annual Report 2023
invalid. Announcement on the
Progress of Companies
25 August Involving Litigation on
2023 http://www.cninfo.com.cn
(Announcement No.:
2023-027)
Note: As of the date of disclosure of this report the Company has not received the court's acceptance response evidence and related
litigation notices.XII. Penalty and rectification
□ Applicable √ Not applicable
There were no penalties or rectifications during the report period of the Company.XIII. Integrity of the Company and its controlling shareholders and actual controllers
√ Applicable □ Not applicable
The Company has no controlling shareholder and actual controller. According to the disclosure requirements the
Company’s largest shareholder Foresea Life Insurance Co. Ltd. shareholder Zhongshan Runtian Investment Co. Ltd.shareholder Chengtai Group Co. Ltd. and Shareholder Shenzhen Guanlong Logistics Co. Ltd. shall disclose the
corresponding information. The details are as follows:
i. Integrity of the Company
During the report period it did not exist that the Company failed to perform the effective judgment of the court or owed
comparatively large amount of debt which was overdue. The Company’s integrity was good.ii. The integrity of the Company’s shareholders
1. According to the reply of the Company’s largest shareholder Foresea Life Insurance Co. Ltd.: As of December 31
2023 it did not exist that Foresea Life Insurance Co. Ltd. failed to perform the effective judgment of the court or owed
comparatively large amount of debt which was overdue.
2. According to the reply of the shareholder Zhongshan Runtian Investment Co. Ltd. the original content is as follows:
As of December 31 2023 the cases executed by Zhongshan Runtian Investment Co. Ltd. (hereinafter referred to as
“Zhongshan Runtian”) are as follows:
(1) Due to the case of execution of notarising creditor’s rights documents between Great Wall Guoxing Financial Leasing
Co. Ltd. and 16 companies including Shenzhen Shum Yip Logistics Group Co. Ltd. Shenzhen Baoneng Investment
Group Co. Ltd. Baoneng Real Estate Co. Ltd. and Zhongshan Runtian Investment Co. Ltd. Great Wall Guoxing
Financial Leasing Co. Ltd. applied to the court for compulsory execution. As the guarantor of the debt of RMB 164
million Zhongshan Runtian was jointly and severally liable for the debt and its 5.57 million shares of Jonjee High-tech
were used as collateral. According to the Announcement on the Results of Judicial Disposal of Certain Shares of
Shareholder Holding More Than 5% of the Shares disclosed by the Board of Directors of Jonjee High-tech on December
18 2023 Great Wall Guoxing Financial Leasing Co. Ltd. applied for compulsory execution. 5.57 million shares in Jonjee
High-tech have been disposed of with a disposal amount of RMB 160422600 and a debt joint and several liability
fulfilment amount of RMB 160422600.
(2) Due to the case of notarising creditor’s rights documents between Chongqing Xinyu Financial Leasing Co. Ltd. and
the defendants Shenzhen Baoneng Investment Group Co. Ltd. Shenzhen Baoneng Automobile Co. Ltd. and Zhongshan
Runtian Chongqing Xinyu Financial Leasing Co. Ltd. applied to the court for compulsory execution. As the guarantor
of the debt of RMB260 million Zhongshan Runtian used its 67.65 million A shares of CSG as collateral. As of June 29
67CSG Annual Report 2023
2022 it has disposed of 55628900 A shares of CSG with a total amount of RMB 319999300.00. At present the court
has transferred RMB 301717392.44 to the creditor and Zhongshan Runtian's guarantee liability has been enforced.
(3) Due to the case of notarising creditor’s rights documents between Guangdong Finance Trust Co. Ltd. and Zhongshan
Runtian Shenzhen Jushenghua Co. Ltd. Shenzhen Baoneng Investment Group Co. Ltd. Baoneng Holdings (China) Co.Ltd. and Mr. Yao Zhenhua Finance Trust applied to the court for compulsory execution. The 26550000 shares of Jonjee
High-tech held by Zhongshan Runtian Investment Co. Ltd. have been sold on September 13 2022 and the amount
credited into the account was RMB 793755369.22 which was approximately RMB 90 million different from the debt
amount of RMB 882199570.79 submitted to the court by the execution applicant. As a result the case remained unsettled.
(4) Due to the dispute over the financial loan contract between AVIC Trust Co. Ltd. and Zhongshan Runtian Zhongshan
Runtian as the borrower of the debt principal of RMB 1.05 billion and Hefei Baohui Real Estate Co. Ltd. Hefei Baoneng
Real Estate Development Co. Ltd. Shenzhen Jushenghua Co. Ltd. Shenzhen Shum Yip Logistics Group Co. Ltd.Shenzhen Baoneng Investment Group Co. Ltd. Chia Tai (Shenzhen) Development Co. Ltd. and Mr. Yao Zhenhua were
jointly and severally liable for the debt. As of December 31 2023 it has disposed a total of 11156871 shares of Jonjee
High-tech; among them the first round of freezing of 2125605 shares by AVIC Trust Co. Ltd. and the judicial mark of
8056410 shares.
(5) Due to the case of execution of notarising creditor’s rights documents between Chongqing International Trust Co.
Ltd. and Shenzhen Jushenghua Co. Ltd. Zhongshan Runtian Shenzhen Baoneng Investment Group Co. Ltd. and Mr.Yao Zhenhua the court ruled to seal up and freeze the property of RMB 541 million of Jushenghua Baoneng Group and
Yao Zhenhua and to freeze the 22 million shares of Jonjee High-tech pledged by Zhongshan Runtian to Chongqing Trust.At present Chongqing Trust has applied for compulsory execution. As of February 2 2023 it has disposed of 21025100
shares of Jonjee High-tech with a total amount of RMB 617383579.06.
(6) Due to the case of the loan contract dispute between Zhongshan Runtian and Shanghai Pudong Development Bank
Co. Ltd. the People’s Court of Futian District Shenzhen has issued an Execution Ruling ruling that 12 million shares
held by Zhongshan Runtian in “Jonjee High-tech” the entity subject to enforcement shall be auctioned off and realised
for the purpose of settling the debt. As the bidder failed to pay the final payment within the prescribed time according to
the Notification of Sale from the People’s Court of Futian District Shenzhen issued on February 16 2023 the aforesaid
12 million shares would be re-auctioned. On March 22 2023 Shanghai Pudong Development Bank Co. Ltd. disposed
of the 12 million shares held by Zhongshan Runtian in “Jonjee High-tech” by way of a judicial auction. The 12 million
shares have been disposed of for RMB 405684000.Notice of auction was received on December 12 2023: the Futian Court intended to judicially auction 9 million
unrestricted public shares of Jonjee High-tech held by Zhongshan Runtian on the Judicial Auction Online Platform from
10:00 a.m. on January 16 2024 to 10:00 a.m. on January 17 2024 (except for the extension of the time) which has been
suspended due to the supplemental security.
(7) Due to the case of the loan contract dispute between Zhongshan Runtian and Chongqing Trust Inc. Shenzhen
Intermediate People’s Court has issued an execution notification demanding the disposal of 22 million shares held by
Zhongshan Runtian in “Jonjee High-tech” at a realised price. On January 17 2023 Chongqing Trust disposed of a total
of 5.7 million shares held by Zhongshan Runtian by way of block trading.
(8) Due to the case of the loan contract dispute between Zhongshan Runtian and Bank of Communications Financial
Leasing Co. Ltd. the Intermediate People’s Court of Zhongshan City Guangdong Province has issued an execution
ruling to auction off 8329457 shares held by Zhongshan Runtian in “Jonjee High-tech”. On 11 May 2023 Bank ofCommunications Financial Leasing Co. Ltd. disposed of the 8329457 shares held by Zhongshan Runtian in “JonjeeHigh-tech” by way of a judicial auction. The auction proceeds of RMB 284.27 million which has been used up to pay
off RMB 202451688.15 in this case RMB 269851.69 in execution fees and RMB 50000 in auxiliary auction fees.
68CSG Annual Report 2023
(9) Due to the case of the loan contract dispute between Zhongshan Runtian and Bohai Trust the Intermediate People's
Court of Zhongshan City Guangdong Province has issued an Execution Ruling ruling the mandatory realisation of 13.7
million shares held by the entity subject to enforcement Zhongshan Runtian in "Jonjee High-tech". As of June 6 2023
all 13.7 million shares had been disposed of. The court has disbursed a total of RMB 458173319.95 to Bohai Trust with
approximately RMB 10 million outstanding. Bohai Trust has initiated separate legal proceedings at the Shenzhen Court
of International Arbitration to recover the outstanding balance and realise the collateral and the pledge guarantee amounts
to RMB 35504500. Currently the case is awaiting a court hearing.
(10) Due to the case of the transfer and buy-back contract dispute between Zhongshan Runtian and Shenzhen Qianhai
Dongfang Venture the Intermediate People's Court of Shenzhen Municipality has issued an Execution Ruling ruling that
the property of the entities subject to enforcement including Shenzhen Hualitong Zhongshan Runtian Baoneng
Investment and Jushenghua should be seized frozen sequestered withheld withdrawn or allocated to the extent of a
total amount of RMB 623102565.76 (including RMB 43513 215.76 of Zhongshan Runtian Investment Co. Ltd.) as
well as interest on the debt during the period of delayed performance costs of enforcement applications and actual
expenses incurred during the enforcement.
(11) Due to the case of the financial loan contract dispute between Bank of Tibet and Lhasa Baochuang and Zhongshan
Runtian the total enforcement amount stands at RMB 828970067.74 with RMB 821439159.19 already enforced. In
August 2023 the court issued a Reinstatement of Execution Ruling which ruled to withhold and freeze the bank deposits
of the entities subject to enforcement in the sum of RMB 50943534.03 a total enforcement fee of RMB 118343.53 as
well as interest interest on the debt during the period of delayed performance and case acceptance fee.
(12) Due to the case of the loan contract dispute between Shenzhen Baotai Honghua and Zhongshan Runtian Hualitong
and Shenzhen Jixiang Service Shenzhen Baotai Honghua applied for enforcement of RMB 1205000000 and interest.In another case asset disposal resulted in the distribution of disposal proceeds of RMB 356272071.65.
(13) Due to the case of the equity pledge dispute between Essence Securities and Zhongshan Runtian the amount of the
litigation is RMB 352912928.76. The Intermediate People's Court of Nanchang City has issued a first-instance
judgement which ruled to reject the litigation request of Essence Securities. In September 2023 Essence Securities filed
another lawsuit with the Futian court in Shenzhen seeking payment from Zhongshan Runtian for financing funds and
interest. The claim in this case amounts to RMB 128 million. The case is currently undergoing first-instance proceedings.
(14) Due to the three cases of claim transaction disputes between Guangdong Huaxing Bank Co. Ltd. and Jushenghua
Shum Yip Logistics Baoneng Investment Hualitong and Zhongshan Runtian judgements have been rendered in the first
instance. In Case No. (2022) Y. 0303 M.C. 19249 Zhongshan Runtian is held jointly and severally liable for settling the
principal of RMB 150000000 and associated interest. In Case No. (2022) Y. 0303 M.C. 19248 Zhongshan Runtian
bears the joint and several liability for settling the principal of RMB 300000000 and interest of RMB 22500000 on the
bonds in question. In Case No. (2022) Y. 0303 M.C. 19250 Zhongshan Runtian is jointly and severally liable for settling
the principal of RMB 200000000 and associated interest on the bonds in question. All these cases are currently in the
second instance.
(15) Due to the case of the finance lease contract dispute between Science City (GZ) Financial Leasing Co. Ltd. and
Kunshan JuTron New Energy Technology Co. Ltd. Baoneng Investment Jushenghua Baoneng Urban Development
Taiyuan Baoju Real Estate Qianhai Huabao Supply Chain Zhongshan Runtian and Ping An Securities Zhongshan
Runtian acts as a guarantor for the debt of RMB 120 million. The first-instance judgement has yet to be rendered.
(16) Due to the case of the corporate bond trading dispute between Guangdong Huaxing Bank Co. Ltd. and Shum Yip
Logistics Jushenghua Baoneng New Energy Automobile Shenzhen Baoneng Automobile Yao Zhenhua Baoneng
Investment Hualitong and Zhongshan Runtian Zhongshan Runtian acts as a guarantor for the debt of RMB 450 million.The case is still at the stage of the first instance.
69CSG Annual Report 2023
(17) Due to the two cases of finance lease contract disputes between Science City (GZ) Financial Leasing Co. Ltd. and
Qoros Automotive Baoneng Investment Jushenghua Baoneng Urban Development Yao Zhenhua Taiyuan Baoju Real
Estate Chongqing Baoneng Supply Chain Guangzhou Baoneng Culture Entertainment Qianhai Huabao Supply Chain
Zhongshan Runtian and Ping An Securities the total claim amount is RMB 186 million and Zhongshan Runtian acts as
the guarantor in the cases. The cases are currently in the first-instance stage.
(18) Due to the case of the finance lease contract dispute between Science City (GZ) Financial Leasing Co. Ltd. and
Shenzhen Baoneng Automobile Baoneng Investment Jushenghua Baoneng Urban Development Yao Zhenhua Taiyuan
Baoju Real Estate Guangzhou Baoneng Culture Entertainment Qianhai Huabao Supply Chain Zhongshan Runtian and
Ping An Securities Zhongshan Runtian acts as a guarantor for the debt of RMB 210 million. The case is currently in the
first-instance stage.
(19) Due to the case of the finance lease contract dispute between Science City (GZ) Financial Leasing Co. Ltd. and
Shenzhen Hua'ai Industrial Development Baoneng Investment Jushenghua Baoneng Urban Development Yao Zhenhua
Taiyuan Baoju Real Estate Guangzhou Baoneng Culture Entertainment Qianhai Huabao Supply Chain Zhongshan
Runtian and Ping An Securities Zhongshan Runtian acts as a guarantor for the debt of RMB 20.33 million. The case is
currently in the first-instance stage.
(20) Due to the case of the finance lease contract dispute between Science City (GZ) Financial Leasing Co. Ltd. and
Baoneng Automotive Research and Development Baoneng Investment Jushenghua Baoneng Urban Development Yao
Zhenhua Taiyuan Baoju Real Estate Guangzhou Baoneng Culture Entertainment Qianhai Huabao Supply Chain
Zhongshan Runtian and Ping An Securities Zhongshan Runtian acts as a guarantor for the debt of RMB 22.38 million.The case is currently in the first-instance stage.
(21) Due to the two cases of finance lease contract disputes between Science City (GZ) Financial Leasing Co. Ltd. and
Shenzhen Baoneng Automobile Qoros Automotive Baoneng Investment Jushenghua Baoneng Urban Development
Zhongshan Runtian Yao Zhenhua Tengchong Beihai Wetland Guangzhou Baoneng Culture Entertainment Qianhai
Huabao Supply Chain and Chuangbang Group the total claim amount is RMB 142 million and Zhongshan Runtian acts
as the guarantor. The two cases are currently in the first-instance stage.
(22) Due to the case of the finance lease contract dispute between Shandong Tongda Financial Leasing Co. Ltd. and
Shenzhen Baoneng Automobile Baoneng Investment Zhongshan Runtian Wuhu Baoneng Real Estate Shenzhen
Xinchang Enterprise Management Co. Ltd. and Chuangbang Group Zhongshan Runtian acts as a guarantor for the debt
of RMB 260 million. The case is currently in the first-instance stage.
(23) Due to the case of the finance lease contract dispute between Shandong Tongda Financial Leasing Co. Ltd. and Shum
Yip Logistics Baoneng Investment Baoneng Real Estate Zhongshan Runtian Wuhu Baoneng Real Estate and Shenzhen
Hualitong Zhongshan Runtian acts as a guarantor for the debt of RMB 160 million. The case is currently in the first-
instance stage.
(24) Due to the two cases of finance lease contract disputes between Science City (GZ) Financial Leasing Co. Ltd. and
Shenzhen Hua'ai Industrial Development Yao Zhenhua Guangzhou Baoneng Culture Entertainment Qianhai Huabao
Supply Chain Zhongshan Runtian and Jushenghua the total claim amount is RMB 122 million and Zhongshan Runtian
acts as the guarantor. The two cases are currently in the first-instance stage.As of December 31 2023 the details of Zhongshan Runtian’s comparatively large amount of debt which was overdue
are as follows:
Serial Financial Loan amount Credit Start date Maturity
Borrower
number institution (RMB 0000) enhancement plan of loan date of loan
Zhongshan Runtian
Essence
1 Investment Co. 4239.28 Guarantee+Pledge 2018/12/27 2021/12/26
Securities
Ltd.
70CSG Annual Report 2023
Zhongshan Runtian
2 Investment Co. AVIC Trust 105000.00 Guarantee+Pledge 2019/9/25 2021/10/31
Ltd.Total 109239.28
Note: As of October 31 2023 related stocks held by Zhongshan Runtian had been liquidated by AVIC Trust through
various channels. However since it is not the first pledgee the proceeds from liquidation must be retained for withdrawal
by the first pledgee Essence Securities. AVIC Trust has withdrawn only part of the funds so far. Due to the large number
of issues and quantities of trust products the Company is still negotiating with AVIC Trust on the deduction method for
principal and interest and no solution has been finalised. Therefore the outstanding loan cannot be adjusted for now.Once a solution is finalised further disclosure will be made.As of December 31 2023 Mr. Yao Zhenhua’s personal execution cases are as follows:
(1) Due to the case of dispute over notarising creditor’s rights documents between Ping An Trust Co. Ltd. and
Shaoxing Baorui Real Estate Co. Ltd. Baoneng City Co. Ltd. Shenzhen Baoneng Investment Group Co. Ltd.Baoneng Real Estate Co. Ltd. Shanghai Kaiyue Investment Co. Ltd. and Mr. Yao Zhenhua which was applied for
compulsory execution by Ping An Trust Mr. Yao Zhenhua was jointly and severally liable for the principal and interest
of the debt of RMB 420 million.
(2) Due to the trust loan dispute between the National Trust and Shenzhen Xinao Trading Co. Ltd. Shenzhen Baoneng
Investment Group Co. Ltd. Mr. Yao Zhenhua and others signed relevant guarantee contracts ordering Shenzhen Xinao
Trading Co. Ltd. to repay the loan principal of RMB 290 million and related interest and lawsuit costs. Shenzhen Baoneng
Investment Group Co. Ltd. Mr. Yao Zhenhua and others were jointly and severally liable for the debt.
(3) Due to the financial borrowing between Zhongrong International Trust Co. Ltd. and Baoneng Automobile Co. Ltd.
it applied to the Beijing Third Intermediate People’s Court for compulsory execution for notarisation on the matter. Since
Mr. Yao Zhenhua provided a guarantee for this loan business and signed the relevant notarised documents he was jointly
and severally liable for the debt of RMB 1048 million.
(4) As Kunlun Trust Co. Ltd. applied to the court for compulsory execution of the notarising creditor’s rights documents
with Shum Yip Logistics Group Co. Ltd. Baoneng Century Co. Ltd. Chia Tai (Shenzhen) Development Co. Ltd.Shenzhen Baoneng Investment Group Co. Ltd. Baoneng Holdings (China) Co. Ltd. and Mr. Yao Zhenhua Mr. Yao
Zhenhua assumed joint and several guarantee liabilities for the debt of RMB 1.31 billion.
(5) Due to the case of notarising creditor’s rights documents between Guangzhou Xinhua City Development Industry
Investment Enterprise (Limited Partnership) and the defendants Shenzhen Baoneng Investment Group Co. Ltd.Shenzhen Jushenghua Co. Ltd. and Mr. Yao Zhenhua Mr. Yao Zhenhua as the guarantor signed the relevant notarial
documents and assumed joint and several liabilities for the principal and interest of the creditor’s rights of RMB 600
million.
(6) Due to the dispute over the loan contract between Fuzhou Branch of Xiamen International Bank Co. Ltd. and
Shenzhen Jushenghua Co. Ltd. Fuzhou Branch of Xiamen International Bank Co. Ltd. applied to Shenzhen Intermediate
People’s Court for compulsory execution. Mr. Yao Zhenhua as the guarantor of the loan principal of RMB 2.16 billion
signed the corresponding Guarantee Contract and assumed joint and several liabilities for the debt.
(7) Due to the financial loan dispute between Guangdong Finance Trust Co. Ltd. and Zhongshan Runtian Guangdong
Finance Trust Co. Ltd. applied to Shenzhen Intermediate People’s Court for compulsory execution. Mr. Yao Zhenhua
as the guarantor of the loan signed the corresponding Guarantee Contract and was jointly and severally liable for the debt
of RMB 720 million. The 26550000 shares of Jonjee High-tech held by Zhongshan Runtian Investment Co. Ltd. have
been realised on September 13 2022 with a received amount of RMB 793755369.22 which is about RMB 90 million
different from the owed amount of RMB 882199570.79 submitted to the court by the applicant for execution. Therefore
the case has not been settled for the time being.
71CSG Annual Report 2023
(8) Due to the financial debt dispute between China Railway Trust Co. Ltd. and Baoneng Automobile Group Co. Ltd.
and Kunming Baojun Real Estate Co. Ltd. it applied to Chengdu Intermediate People’s Court of Sichuan Province for
compulsory execution. As the guarantor of the debt Mr. Yao Zhenhua signed the corresponding Guarantee Contract and
was jointly and severally liable for the debt of RMB 2095 million. A settlement agreement has been signed in this case.
(9) Due to the financial debt dispute between China Railway Trust Co. Ltd. and Baoneng Automobile Group Co. Ltd.
and Kunming Jianpeng Real Estate Development Co. Ltd. it applied to Chengdu Intermediate People’s Court of Sichuan
Province for compulsory execution. Mr. Yao Zhenhua as the guarantor of the debt signed the corresponding Guarantee
Contract and was jointly and severally liable for the debt of RMB 836 million. A settlement agreement has been signed
in this case and the execution has been terminated.
(10) Due to the case of notarising creditor’s rights documents between Changan International Trust Co. Ltd. and
Shenzhen Baoneng Investment Group Co. Ltd. Wuxi Baoneng Real Estate Co. Ltd. Baoneng Holdings (China) Co.Ltd. Shenzhen Jushenghua Co. Ltd. and Mr. Yao Zhenhua Changan Trust applied for compulsory execution. Mr. Yao
Zhenhua as the guarantor of the debt was jointly and severally liable for the debt of RMB 925 million.
(11) Due to the case of notarising creditor’s rights documents between Changan International Trust Co. Ltd. and
Shenzhen Baoneng Investment Group Co. Ltd. Wuxi Baoneng Real Estate Co. Ltd. Baoneng Holdings (China) Co.Ltd. Shenzhen Jushenghua Co. Ltd. and Mr. Yao Zhenhua Changan Trust applied for compulsory execution. Mr. Yao
Zhenhua as the guarantor of the debt was jointly and severally liable for the debt of RMB 1117 million.
(12) Due to the case of notarising creditor’s rights documents between China Minsheng Trust Co. Ltd. and the defendants
Shenzhen Baoneng Investment Group Co. Ltd. Hefei Baohui Real Estate Co. Ltd. Shenzhen Baoneng Enterprise
Management Co. Ltd. Anhui Baoneng Land Co. Ltd. and Mr. Yao Zhenhua Minsheng Trust applied for compulsory
execution. As the guarantor of the debt Mr. Yao Zhenhua bore unlimited several and joint liability for the debt of RMB
4207 million.
(13) Due to the case of notarising creditor’s rights documents between Shanghai Aijian Trust Co. Ltd. and Shenzhen
Shum Yip Logistics Group Co. Ltd. Shenzhen Baoneng Investment Group Co. Ltd. Chia Tai (Shenzhen) Development
Co. Ltd. Hefei Baohui Real Estate Co. Ltd. Hefei Baoneng Real Estate Development Co. Ltd. Shenzhen Jushenghua
Co. Ltd. and Mr. Yao Zhenhua Aijian Trust applied to the court for compulsory execution. As the guarantor of the debt
Mr. Yao Zhenhua was jointly and severally liable for the debt of RMB 416 million.
(14) Due to the dispute over the loan contract with Baoneng Automobile Group Co. Ltd. Chongqing International Trust
applied to the court for compulsory execution and Mr. Yao Zhenhua as the guarantor of the debt was jointly and
severally liable for the debt of RMB 2186 million.
(15) Due to the case of notarising creditor’s rights documents between China Minsheng Trust Co. Ltd. and Shenzhen
Shum Yip Logistics Group Co. Ltd. Shenzhen Baoneng Investment Group Co. Ltd. Shenzhen Jushenghua Co. Ltd.and Mr. Yao Zhenhua Minsheng Trust applied to the court for compulsory execution and Mr. Yao Zhenhua as the
guarantor of the debt was jointly and severally liable for the debt of RMB 496 million.
(16) Due to the case of China Minsheng Trust Co. Ltd. Shenzhen Shum Yip Logistics Group Co. Ltd. Shenzhen
Baoneng Investment Group Co. Ltd. Shenzhen Jushenghua Co. Ltd. and Mr. Yao Zhenhua Minsheng Trust applied to
the court for compulsory execution and Mr. Yao Zhenhua as the guarantor of the debt was jointly and severally liable
for the debt of RMB 2238 million.
(17) Due to the financial loan contract dispute between AVIC Trust Co. Ltd. and Shenzhen Lingdao Auto Life Service
Co. Ltd. Shenzhen Baoneng Investment Group Co. Ltd. Shenzhen Jushenghua Co. Ltd. Shenzhen Shum Yip Logistics
Group Co. Ltd. Tengchong Baoneng Real Estate Co. Ltd. Zhejiang Jintian Real Estate Development Co. Ltd.Tengchong Beihai Wetland Ecotourism Investment Co. Ltd. and Mr. Yao Zhenhua AVIC Trust applied to the court for
compulsory execution and Mr. Yao Zhenhua as the guarantor of the debt was jointly and severally liable for the debt of
RMB 984 million.
72CSG Annual Report 2023
(18) Due to the financial loan contract dispute between AVIC Trust Co. Ltd. and Shenzhen Shum Yip Logistics Group
Co. Ltd. Shenzhen Baoneng Investment Group Co. Ltd. Shenzhen Jushenghua Co. Ltd. Baoneng Real Estate Co.Ltd. and Wuhu Baoneng Real Estate Co. Ltd. Baoneng City Co. Ltd. Tengchong Beihai Wetland Eco-Tourism
Investment Co. Ltd. and Mr. Yao Zhenhua AVIC Trust applied to the court for execution. Mr. Yao Zhenhua as the
guarantor of the debt was jointly and severally liable for the debt of RMB 549 million (principal exclusive of interest
penalty interest etc.).
(19) Due to the loan contract dispute between Shenzhen Branch of Ping An Bank Co. Ltd. and Shenzhen Shum Yip
Logistics Group Co. Ltd. Shenzhen Jushenghua Co. Ltd. Shenzhen Baoneng Investment Group Co. Ltd. Baoneng
Real Estate Co. Ltd. Shenzhen First Space Operation Management Co. Ltd. Mr. Yao Zhenhua and Baoneng City Co.Ltd. Shenzhen Branch applied to the court for execution. Mr. Yao Zhenhua as the guarantor of the debt was jointly and
severally liable for the debt of RMB 3433 million. A settlement has been reached in this case and the execution has been
terminated.
(20) Due to the execution of lawsuit costs of the loan contract dispute between Shenzhen Branch of Ping An Bank Co.
Ltd. and Baoneng City Co. Ltd. Baoneng Real Estate Co. Ltd. Baoneng Holdings (China) Co. Ltd. Mr. Yao Zhenhua
and Shenzhen Liujin Investment Co. Ltd. the Higher People’s Court of Guangdong Province appointed Shenzhen
Intermediate People’s Court of Guangdong Province to execute the case. Mr. Yao Zhenhua as the guarantor of the loan
contract dispute was jointly and severally liable for the lawsuit costs of RMB 13920800 arising from the loan contract
dispute. The said lawsuit costs have been transferred and executed.
(21) Due to the loan contract dispute between Shenzhen Branch of Ping An Bank Co. Ltd. and Baoneng City Co. Ltd.
Baoneng Real Estate Co. Ltd. Baoneng Holdings (China) Co. Ltd. Mr. Yao Zhenhua and Shenzhen Liujin Investment
Co. Ltd. Shenzhen Branch of Ping An Bank Co. Ltd. applied to the court for execution. Mr. Yao Zhenhua as the
guarantor of the debt was jointly and severally liable for the debt of RMB 5562 million. In this case RMB 3674 million
was obtained from auction of residential unit and RMB 2226 million was repaid to Ping An Bank for debt repayment
after deducting the appropriate taxes and fees.
(22) Due to the case of execution of notarising creditor’s rights documents between Chongqing International Trust Co.
Ltd. and Shenzhen Jushenghua Co. Ltd. Zhongshan Runtian Shenzhen Baoneng Investment Group Co. Ltd. and Mr.Yao Zhenhua Chongqing International Trust Co. Ltd. Chongqing International Trust Co. Ltd. applied to the court for
execution and Mr. Yao Zhenhua as the guarantor of the debt was jointly and severally liable for the debt of RMB 541
million.
(23) Due to the case that Tibet Bank Co. Ltd. sued Lhasa Baochuang Automobile Sales Co. Ltd. Mr. Yao Zhenhua
Shenzhen Baoneng Investment Group Co. Ltd. Shenzhen Jushenghua Co. Ltd. and Shenzhen Shum Yip Logistics
Group Co. Ltd. were jointly and severally liable for the lawsuit costs of the loan contract dispute which was executed
by the Lhasa Intermediate People’s Court of the Tibet Autonomous Region Mr. Yao Zhenhua as the guarantor of the
loan contract dispute was jointly and severally liable for the lawsuit costs of RMB 5.11 million arising from the loan
contract dispute.
(24) Due to the case that Tibet Bank Co. Ltd. sued Lhasa Baochuang Automobile Sales Co. Ltd. Mr. Yao Zhenhua
Shenzhen Baoneng Investment Group Co. Ltd. Shenzhen Jushenghua Co. Ltd. and Shenzhen Shum Yip Logistics Group
Co. Ltd. were jointly and severally liable for the debts arising from the loan contract dispute and were executed by Lhasa
Intermediate People’s Court of the Tibet Autonomous Region. Mr. Yao Zhenhua as the guarantor of the loan contract
dispute bore joint and several guarantee liability for the debt of RMB 829 million arising from the loan contract dispute
which has been paid off.
(25) Due to the case that Chongqing International Trust Co. Ltd. sued Baoneng Automobile Group Co. Ltd. Nanjing
Baoneng Urban Development Co. Ltd. Shenzhen Baoneng Investment Group Co. Ltd. Baoneng Holdings (China) Co.
73CSG Annual Report 2023
Ltd. and Yao Zhenhua as the guarantor of the debt Mr. Yao Zhenhua was executed by the Chongqing No. 5 Intermediate
People’s Court and he was jointly and severally liable for the debt of RMB 2186 million.Mr. Yao Zhenhua had no debt with comparatively large amount that had not been paid when due.
3. According to the reply of the shareholder Chengtai Group Co. Ltd.: As of December 31 2023 Chengtai Group Co.
Ltd. has not received relevant information on share freezing and lawsuit and it had no debt with comparatively large
amount that had not been paid when due.
4. According to the reply of the shareholder Shenzhen Guanlong Logistics Co. Ltd.: As of December 31 2023 Shenzhen
Guanlong Logistics Co. Ltd. has not received relevant information on share freezing and lawsuit and it had no debt with
comparatively large amount that had not been paid when due.XIV. Major related transaction
1. Related transaction with routine operation concerned
□ Applicable √ Not applicable
2. Related transaction with acquisition of assets or equity sales of assets or equity concerned
□ Applicable √ Not applicable
3. Related transaction with jointly external investment concerned
□ Applicable √ Not applicable
4. Credits and liabilities with related parties
□ Applicable √ Not applicable
5. Transactions with related financial companies
□ Applicable √ Not applicable
6. Transactions between financial companies controlled by the company and related parties
□ Applicable √ Not applicable
7. Other major related transaction
□ Applicable √ Not applicable
74CSG Annual Report 2023
XV. Significant contracts and their implementation
1. Trusteeship contracting and leasing
(1) Trusteeship
□ Applicable √ Not applicable
(2) Contract
□ Applicable √ Not applicable
(3) Leasing
□ Applicable √ Not applicable
2. Major guarantees
√ Applicable □ Not applicable
Unit: RMB 0000
External guarantees of the Company and its subsidiaries (excluding the guarantees for subsidiaries)
Date of
disclosure of Compl Guarante
Counter
related Actual Guarante ete e for
Name of guarantee Guarantee Actual date Collateral guarantee Guaranty
announceme amount of e implem related
object amount of guarantee (if any) circumstan period
nt on guarantee type entatio party or
ce (if any)
guarantee n or not not
amount
Total amount of approved external guarantees Total actual amount of external guarantees during the
00
during the report period (A1) report period (A2)
Total amount of approved external guarantees at Total balance of actual external guarantees at the end
00
the end of the report period (A3) of the report period (A4)
Guarantees of the Company for its subsidiaries
Date of
disclosure of Compl Guarante
Counter
related Actual Guarante ete e for
Name of guarantee Guarantee Actual date Collateral guarantee Guaranty
announceme amount of e implem related
object amount of guarantee (if any) circumstan period
nt on guarantee type entatio party or
ce (if any)
guarantee n or not not
amount
Xianning CSG Joint
April 25
Photoelectric Glass Co. 6000 May 26 2022 2865 liability None None 1 year No No
2022
Ltd. guarantee
Xianning CSG Joint
April 25 November
Photoelectric Glass Co. 5000 95 liability None None 1 year No No
2022252022
Ltd. guarantee
Xianning CSG Joint
April 25 March 9
Photoelectric Glass Co. 3500 3500 liability None None 1 year No No
20222023
Ltd. guarantee
75CSG Annual Report 2023
Joint
Xianning CSG Energy- April 26
5000 July 10 2023 4609 liability None None 1 year No No
Saving Glass Co. Ltd. 2023
guarantee
Joint
Xianning CSG Energy- April 25 March 17
8600 1174 liability None None 5 years No No
Saving Glass Co. Ltd. 2022 2023
guarantee
Joint
Xianning CSG Energy- April 26 December
8000 0 liability None None 1 year No No
Saving Glass Co. Ltd. 2023 21 2023
guarantee
Joint
Xianning CSG Energy- April 26
5000 May 9 2023 1500 liability None None 1 year No No
Saving Glass Co. Ltd. 2023
guarantee
Yichang CSG Joint
April 25 March 15
Photoelectric Glass Co. 1800 800 liability None None 1 year No No
20222023
Ltd. guarantee
Yichang CSG Joint
April 26 October 17
Photoelectric Glass Co. 600 600 liability None None 1 year No No
20232023
Ltd. guarantee
Yichang CSG Joint
April 26 August 14
Photoelectric Glass Co. 1200 26 liability None None 1 year No No
20232023
Ltd. guarantee
Yichang CSG Joint
April 25 August 16
Photoelectric Glass Co. 600 0 liability None None 2 years No No
20222022
Ltd. guarantee
Yichang CSG Joint
August 10 December
Photoelectric Glass Co. 1824 1000 liability None None 1 year Yes No
2021172021
Ltd. guarantee
Joint
Dongguan CSG PV-tech August 10 November
3000 2957 liability None None 1 year Yes No
Co. Ltd. 2021 29 2021
guarantee
Joint
Hebei Panel Glass Co. April 26
5000 June 5 2023 500 liability None None 1 year No No
Ltd. 2023
guarantee
Joint
Hebei Panel Glass Co. April 26 August 9
5000 1248 liability None None 1 year No No
Ltd. 2023 2023
guarantee
Joint
Hebei Panel Glass Co. April 25
2500 May 16 2022 0 liability None None 3 years No No
Ltd. 2022
guarantee
Joint
Hebei Panel Glass Co. October 30 December
16500 10541 liability None None 5 years No No
Ltd. 2021 17 2021
guarantee
Joint
Hebei CSG Glass Co. April 26
3000 May 8 2023 2950 liability None None 1 year No No
Ltd. 2023
guarantee
Joint
Hebei CSG Glass Co. April 26
16000 June 5 2023 8093 liability None None 1 year No No
Ltd. 2023
guarantee
Joint
Hebei CSG Glass Co. April 25
2500 May 16 2022 0 liability None None 3 years No No
Ltd. 2022
guarantee
Dongguan CSG Joint
June 29 September
Architectural Glass Co. 5000 0 liability None None 2 years Yes No
2021132021
Ltd. guarantee
Dongguan CSG Joint
April 26 September
Architectural Glass Co. 5000 1000 liability None None 1 year No No
2023182023
Ltd. guarantee
76CSG Annual Report 2023
Dongguan CSG Joint
April 25 January 6
Architectural Glass Co. 10000 3143 liability None None 1 year No No
20222023
Ltd. guarantee
Joint
Xianning CSG Glass April 26
7000 July 14 2023 6955 liability None None 1 year No No
Co. Ltd. 2023
guarantee
Joint
Xianning CSG Glass April 26 August 16
5000 1238 liability None None 4 years No No
Co. Ltd. 2023 2023
guarantee
Joint
Xianning CSG Glass April 26 November
5000 0 liability None None 1 year No No
Co. Ltd. 2023 28 2023
guarantee
Joint
Xianning CSG Glass December March 25
15000 10689 liability None None 7 years No No
Co. Ltd. 25 2021 2022
guarantee
Joint
Xianning CSG Glass April 26
50000 June 2 2023 31004 liability None None 7 years No No
Co. Ltd. 2023
guarantee
Joint
Xianning CSG Glass April 26
20000 June 2 2023 14814 liability None None 1 year No No
Co. Ltd. 2023
guarantee
Joint
Xianning CSG Glass April 26
12000 June 9 2023 5533 liability None None 5 years No No
Co. Ltd. 2023
guarantee
Joint
Xianning CSG Glass June 29
20000 July 7 2021 12914 liability None None 5 years No No
Co. Ltd. 2021
guarantee
Joint
Chengdu CSG Glass Co. April 26 August 9
5000 4020 liability None None 1 year No No
Ltd. 2023 2023
guarantee
Joint
Chengdu CSG Glass Co. December February 17
5000 3000 liability None None 1 year Yes No
Ltd. 25 2021 2022
guarantee
Joint
Chengdu CSG Glass Co. April 26 October 7
2000 0 liability None None 1 year No No
Ltd. 2023 2023
guarantee
Joint
Chengdu CSG Glass Co. April 26 September
3000 1000 liability None None 1 year No No
Ltd. 2023 20 2023
guarantee
Joint
Chengdu CSG Glass Co. April 25 November
10000 4000 liability None None 1 year No No
Ltd. 2022 16 2022
guarantee
Joint
Chengdu CSG Glass Co. April 25 November
5000 100 liability None None 1 year No No
Ltd. 2022 25 2022
guarantee
Joint
Chengdu CSG Glass Co. April 25 November
5000 1959 liability None None 3 years No No
Ltd. 2022 25 2022
guarantee
Sichuan CSG Energy Joint
December April 15
Conservation Glass Co. 8000 4200 liability None None 1 year Yes No
2520212022
Ltd. guarantee
Sichuan CSG Energy Joint
April 26 September
Conservation Glass Co. 3000 2000 liability None None 1 year No No
2023202023
Ltd. guarantee
Sichuan CSG Energy Joint
April 26 October 7
Conservation Glass Co. 5000 3000 liability None None 1 year No No
20232023
Ltd. guarantee
77CSG Annual Report 2023
Sichuan CSG Energy Joint
April 26 September
Conservation Glass Co. 10000 3000 liability None None 1 year No No
2023192023
Ltd. guarantee
Sichuan CSG Energy Joint
April 26 December
Conservation Glass Co. 5000 0 liability None None 1 year No No
2023252023
Ltd. guarantee
Sichuan CSG Energy Joint
April 26
Conservation Glass Co. 12000 June 19 2023 5000 liability None None 1 year No No
2023
Ltd. guarantee
Joint
Wujiang CSG Glass Co. February 19 March 12
10000 6044 liability None None 4 years No No
Ltd. 2021 2021
guarantee
Joint
Wujiang CSG Glass Co. April 25 February 7
10000 6945 liability None None 1 year No No
Ltd. 2022 2023
guarantee
Joint
Wujiang CSG Glass Co. April 25 February 28
5000 1177 liability None None 1 year No No
Ltd. 2022 2023
guarantee
Joint
Wujiang CSG Glass Co. April 25 April 20
6000 0 liability None None 1 year No No
Ltd. 2022 2023
guarantee
Joint
Wujiang CSG Glass Co. April 26 August 9
5000 0 liability None None 1 year No No
Ltd. 2023 2023
guarantee
CSG (Suzhou) Corporate Joint
April 26 October 8
Headquarters 15700 0 liability None None 5 years No No
20232023
Management Co. Ltd. guarantee
Wujiang CSG East China Joint
April 25 March 7
Architectural Glass Co. 3000 0 liability None None 1 year No No
20222023
Ltd. guarantee
Wujiang CSG East China Joint
April 25 February 7
Architectural Glass Co. 10000 2000 liability None None 1 year No No
20222023
Ltd. guarantee
Wujiang CSG East China Joint
April 25
Architectural Glass Co. 12400 May 26 2022 3118 liability None None 5 years No No
2022
Ltd. guarantee
Wujiang CSG East China Joint
April 25 April 20
Architectural Glass Co. 6000 0 liability None None 1 year No No
20222023
Ltd. guarantee
Wujiang CSG East China Joint
April 25 April 23
Architectural Glass Co. 5000 1982 liability None None 1 year No No
20222023
Ltd. guarantee
Joint
Dongguan CSG Solar April 26 August 9
5000 3215 liability None None 1 year No No
Glass Co. Ltd. 2023 2023
guarantee
Joint
Dongguan CSG Solar April 25
4000 July 21 2022 1515 liability None None 5 years No No
Glass Co. Ltd. 2022
guarantee
Anhui CSG New Energy Joint
April 26
Material Technology June 30 2023 0 liability None None 1 year No No
2023
Co. Ltd. guarantee
Guangxi CSG New Joint
April 26
Energy Material 33000 June 30 2023 0 liability None None 1 year No No
2023
Technology Co. Ltd. guarantee
Joint
Zhaoqing CSG Energy- April 26
June 30 2023 1903 liability None None 1 year No No
Saving Glass Co. Ltd. 2023
guarantee
78CSG Annual Report 2023
Dongguan CSG Joint
April 26
Photovoltaic Technology June 30 2023 2318 liability None None 1 year No No
2023
Co. Ltd. guarantee
Dongguan CSG Joint
April 26
Architectural Glass Co. June 30 2023 0 liability None None 1 year No No
2023
Ltd. guarantee
Joint
Dongguan CSG Solar April 26
June 30 2023 4787 liability None None 1 year No No
Glass Co. Ltd. 2023
guarantee
Joint
Dongguan CSG Solar April 25
8000 June 7 2022 0 liability None None 1 year Yes No
Glass Co. Ltd. 2022
guarantee
Joint
Dongguan CSG Solar April 25
9000 May 31 2022 5276 liability None None 4 years No No
Glass Co. Ltd. 2022
guarantee
Joint
Dongguan CSG Solar April 25 August 11
6000 0 liability None None 1 year Yes No
Glass Co. Ltd. 2022 2022
guarantee
Qingyuan CSG Energy- Joint
April 26 December
Saving New Materials 6000 0 liability None None 1 year No No
2023272023
Co. Ltd. guarantee
Qingyuan CSG Energy- Joint
April 25 January 6
Saving New Materials 10000 2098 liability None None 1 year No No
20222023
Co. Ltd. guarantee
Qingyuan CSG Energy- Joint
December December 2
Saving New Materials 5000 100 liability None None 1 year Yes No
2520212022
Co. Ltd. guarantee
Qingyuan CSG Energy- Joint
April 25 August 4
Saving New Materials 37400 0 liability None None 5 years No No
20222022
Co. Ltd. guarantee
Qingyuan CSG Energy- Joint
April 25 April 24
Saving New Materials 10000 9852 liability None None 1 year No No
20222023
Co. Ltd. guarantee
Joint
Yichang CSG Display April 25 March 15
1800 1287 liability None None 1 year No No
Co. Ltd. 2022 2023
guarantee
Joint
Yichang CSG Display April 25 February 24
600 600 liability None None 1 year No No
Co. Ltd. 2022 2023
guarantee
Joint
Yichang CSG Display April 25
3000 June 24 2022 2650 liability None None 1 year No No
Co. Ltd. 2022
guarantee
Joint
Yichang CSG April 26 November
1000 0 liability None None 1 year No No
Polysilicon Co. Ltd. 2023 28 2023
guarantee
Joint
Tianjin CSG Energy- April 25 March 9
3000 613 liability None None 1 year No No
Saving Glass Co. Ltd. 2022 2023
guarantee
Joint
Tianjin CSG Energy- April 26
5000 July 10 2023 2800 liability None None 1 year No No
Saving Glass Co. Ltd. 2023
guarantee
Joint
Tianjin CSG Energy- April 26 August 11
3000 500 liability None None 1 year No No
Saving Glass Co. Ltd. 2023 2023
guarantee
Joint
Tianjin CSG Energy- February 19 March 23
7000 4137 liability None None 4 years No No
Saving Glass Co. Ltd. 2021 2021
guarantee
79CSG Annual Report 2023
Joint
Tianjin CSG Energy- April 26 August 10
2000 1303 liability None None 1 year No No
Saving Glass Co. Ltd. 2023 2023
guarantee
Anhui CSG New Energy Joint
August 10 October 19
Material Technology 70000 45102 liability None None 6 years No No
20212021
Co. Ltd. guarantee
Anhui CSG New Energy Joint
August 10 August 28
Material Technology 180000 110920 liability None None 7 years No No
20212021
Co. Ltd. guarantee
Anhui CSG New Energy Joint
April 25
Material Technology 35000 July 5 2022 26000 liability None None 3 years No No
2022
Co. Ltd. guarantee
Anhui CSG New Energy Joint
April 25 February 6
Material Technology 20000 7252 liability None None 3 years No No
20222023
Co. Ltd. guarantee
Anhui CSG New Energy Joint
April 26
Material Technology 30000 May 10 2023 6869 liability None None 1 year No No
2023
Co. Ltd. guarantee
Anhui CSG New Energy Joint
December March 30
Material Technology 50000 25795 liability None None 9 years No No
2520212022
Co. Ltd. guarantee
Anhui CSG New Energy Joint
April 26 August 30
Material Technology 10000 0 liability None None 1 year No No
20232023
Co. Ltd. guarantee
Anhui CSG Silicon Joint
April 26
Valley Mingdu Mining 43379 July 6 2023 39000 liability None None 10 years No No
2023
Development Co. Ltd. guarantee
Joint
Anhui CSG Quartz June 29 September
9000 5696 liability None None 5 years No No
Materials Co. Ltd. 2021 13 2021
guarantee
Joint
Anhui CSG Quartz April 26
4000 July 19 2023 3000 liability None None 1 year No No
Materials Co. Ltd. 2023
guarantee
Joint
Guangxi CSG Mining April 26
July 6 2023 5000 liability None None 8 years No No
Co. Ltd. 2023
guarantee
27400
Joint
Guangxi CSG Quartz April 26
July 6 2023 5000 liability None None 8 years No No
Materials Co. Ltd. 2023
guarantee
Joint
Guangxi CSG Mining April 26
10000 June 7 2023 0 liability None None 5 years No No
Co. Ltd. 2023
guarantee
Joint
Guangxi CSG Quartz April 26
10000 June 7 2023 0 liability None None 5 years No No
Materials Co. Ltd. 2023
guarantee
Guangxi CSG New Joint
April 25
Energy Materials Tech 30000 April 4 2023 0 liability None None 3 years No No
2022
Co. Ltd. guarantee
Guangxi CSG New Joint
April 25
Energy Materials Tech 30000 June 11 2022 10450 liability None None 3 years No No
2022
Co. Ltd. guarantee
Guangxi CSG New Joint
April 25
Energy Materials Tech 50000 July 26 2022 8000 liability None None 8 years No No
2022
Co. Ltd. guarantee
Guangxi CSG New Joint
April 25
Energy Materials Tech 80000 July 26 2022 28939 liability None None 8 years No No
2022
Co. Ltd. guarantee
80CSG Annual Report 2023
Xi'an CSG Energy Joint
April 25 March 27
Saving Glass Technology 34400 14582 liability None None 7 years No No
20222023
Co. Ltd. guarantee
Qinghai CSG Risheng Joint
April 26 September
New Energy Technology 150000 30000 liability None None 8 years No No
2023262023
Co. Ltd. guarantee
Qinghai CSG Risheng Joint
April 26 October 31
New Energy Technology 50000 35292 liability None None 7 years No No
20232023
Co. Ltd. guarantee
Zhaoqing CSG New Joint
April 25
Energy Technology Co. 1530 April 6 2023 1202.5 liability None None 7 years No No
2022
Ltd. guarantee
Joint
Anhui CSG Photovoltaic April 26 April 27
10040 3595 liability None None 7 years No No
Energy Co. Ltd. 2023 2023
guarantee
Joint
Zhanjiang CSG New April 25 March 28
1000 950 liability None None 5 years No No
Energy Co. Ltd. 2022 2023
guarantee
Joint
Zhaoqing CSG Energy- April 25
5000 May 30 2022 0 liability None None 3 years No No
Saving Glass Co. Ltd. 2022
guarantee
Joint
Zhaoqing CSG Energy- September September
34000 22235 liability None None 5 years No No
Saving Glass Co. Ltd. 22 2020 25 2020
guarantee
Dongguan CSG Joint
April 26 August 7
Architectural Glass Co. 2403 liability None None 1 year No No
20232023
Ltd. guarantee
Joint
Dongguan CSG Solar April 26 August 7
0 liability None None 1 year No No
Glass Co. Ltd. 2023 2023
guarantee
Joint
Dongguan CSG PV-tech April 26 August 7
4735 liability None None 1 year No No
Co. Ltd. 2023 2023
guarantee
Anhui CSG New Energy Joint
April 26 August 7
Material Technology 392 liability None None 1 year No No
20232023
Co. Ltd. guarantee
Joint
Wujiang CSG Glass Co. April 26 August 7
0 liability None None 1 year No No
Ltd. 2023 2023
guarantee
Joint
Chengdu CSG Glass Co. April 26 August 7
48000 0 liability None None 1 year No No
Ltd. 2023 2023
guarantee
Sichuan CSG Energy Joint
April 26 August 7
Conservation Glass Co. 184 liability None None 1 year No No
20232023
Ltd. guarantee
Joint
Yichang CSG April 26 August 7
6161 liability None None 1 year No No
Polysilicon Co. Ltd. 2023 2023
guarantee
Joint
Xianning CSG Glass April 26 August 7
0 liability None None 1 year No No
Co. Ltd. 2023 2023
guarantee
Joint
Xianning CSG Energy- April 26 August 7
351 liability None None 1 year No No
Saving Glass Co. Ltd. 2023 2023
guarantee
Wujiang CSG East China Joint
April 26 August 7
Architectural Glass Co. 785 liability None None 1 year No No
20232023
Ltd. guarantee
81CSG Annual Report 2023
Joint
Tianjin CSG Energy- April 26 August 7
2263 liability None None 1 year No No
Saving Glass Co. Ltd. 2023 2023
guarantee
Joint
Zhaoqing CSG Energy- April 26 August 7
2875 liability None None 1 year No No
Saving Glass Co. Ltd. 2023 2023
guarantee
Total actual amount
Total amount of approved guarantees of guarantees for
for subsidiaries during the report 666319 subsidiaries during 321979
period (B1) the report period
(B2)
Total balance of
Total amount of approved guarantees actual guarantees for
for subsidiaries at the end of the report 1561449 subsidiaries at the 671019
period (B3) end of the report
period (B4)
Guarantees of subsidiaries for their subsidiaries
Date of
disclosure of Compl Guarante
Counter
related Actual Guarante ete e for
Name of guarantee Guarantee Actual date Collateral guarantee Guaranty
announceme amount of e implem related
object amount of guarantee (if any) circumstan period
nt on guarantee type entatio party or
ce (if any)
guarantee n or not not
amount
Total actual amount
Total amount of approved guarantees of guarantees for
for subsidiaries during the report 0 subsidiaries during 0
period (C1) the report period
(C2)
Total balance of
Total amount of approved guarantees actual guarantees for
for subsidiaries at the end of the report 0 subsidiaries at the 0
period (C3) end of the report
period (C4)
Total amount of the Company’s guarantees (i.e. the sum of the first three items)
Total actual amount
Total amount of approved guarantees of guarantees during
666319321979
during the report period (A1+B1+C1) the report period
(A2+B2+C2)
Total actual balance
Total amount of approved guarantees
of guarantees at the
at the end of the report period 1561449 671019
end of the report
(A3+B3+C3)
period (A4+B4+C4)
The proportion of total actual amount of guarantees ((i.e.
47.76%
A4+B4+C4) in the net assets of the Company
Including:
Balance of guarantees provided for shareholders actual
0
controllers and its related parties (D)
Balance of debt guarantees provided directly or indirectly for
guaranteed objects with an asset-liability ratio exceeding 70% 7053
(E)
The amount of guarantees exceeding 50% of the net assets (F) 0
82CSG Annual Report 2023
Total guarantee amount of the above three items (D+E+F) 7053
Explanation on guarantee responsibility incurred in the report
period or evidence showing the description of the possible joint
Nil
and several liabilities for repayment for the guarantee contracts
not yet due (if any)
Explanation on providing external guarantees in violation of
Nil
prescribed procedures (if any)
Note: 1. The 2022 Annual General Meeting of the Company reviewed and passed the Proposal for the 2023 Guarantee Plan and
approved the Company and its subsidiaries to provide guarantees in a total amount of not exceeding RMB 21832 million (including
the effective and unexpired amount) for the 2023 credit lines from financial institutions to guaranteed entities within the scope of
consolidated statements. Among them the total amount of guarantees for all guaranteed entities with asset liability ratio of 70% or
above shall not exceed the equivalent amount of RMB 920 million (including the effective and unexpired amount). The Company’s
external guarantees are all provided for subsidiaries within the scope of consolidated statement. As of December 31 2023 the actual
guarantee balance was RMB 6710.19 million (of which the actual guarantee balance with liability/asset ratio of 70% or above was
RMB 70.53 million) accounting for 47.76% of the parent company’s net assets of RMB 14050.8402 million at the end of 2023 and
22.10% of the net assets of RMB 30362.0573 million. The Company has no overdue guarantee.
2. The Company’s 2022 Annual General Meeting reviewed and passed the Proposal on the Development of Asset Pool Business in
2023. In order to achieve the overall management of the Company’s assets such as bills and letters of credit the General Meeting of
Shareholders approved the Company and its subsidiaries to conduct asset pool business of no more than RMB 1.6 billion. Under the
premise of controllable risks various guarantee methods such as maximum pledge general pledge deposit certificate pledge bill
pledge and margin pledge can be adopted for business development. As of December 31 2023 the actual pledge amount of the asset
pool business was RMB 1279.5397 million and the financing balance was RMB 1251.4311 million.Explanation on compound guarantees
Nil
3. Entrust others to manage cash assets
(1)Entrusted Financing
□Applicable √ Not applicable
(2) Entrusted loans
□Applicable √ Not applicable
4. Other material contracts
□Applicable √ Not applicable
XVI. Statement on other important matters
√Applicable □ Not applicable
1. Ultra-short-term financing bills
On May 16 2022 the Company's 2021 Annual General Meeting reviewed and approved the "Proposal on Application
83CSG Annual Report 2023
for Registration and Issuance of Medium-Term Notes and Ultra-short-term Financing Bills" which agreed that the
Company would register and issue ultra-short-term financing bills with a registered amount of not more than RMB 1
billion The Company can issue one or more times within the validity period of the registration according to the actual
capital needs and the capital situation of the inter-bank market. On October 30 2023 the Dealers Association held the
128th registration meeting in 2023 and decided to accept the registration of ultra-short-term financing notes with a total
amount of RMB 1 billion and a validity period of two years.
2. Medium-term notes
On May 16 2022 the Company's 2021 Annual General Meeting reviewed and approved the "Proposal on Application
for Registration and Issuance of Medium-term Notes and Ultra-short-term Financing Bills" which agreed that the
Company would register and issue medium-term notes with a registered amount of not more than RMB 2 billion. Actual
capital needs and inter-bank market capital status can be issued one or more times within the validity period of registration.On October 30 2023 the Dealers Association held its 128th registration meeting for 2023 and decided to accept the
registration of medium-term notes with a total value of RMB 2 billion and a validity period of two years.
3.Public issuance of corporate bondsOn March 2 2017 the 2nd Extraordinary General Meeting of Shareholders in 2017 reviewed and approved “the Proposalon the Public Issuance of Corporate Bonds for Qualified Investors". On February 27 2019 the First Extraordinary GeneralMeeting of Shareholders in 2019 reviewed and approved the “Proposal on Extending the Validity Period of theShareholders' Meeting for the Public Offering of Corporate Bonds to Qualified Investors” which agreed to issue corporate
bonds with a total issue of no more than RMB 2 billion and a term of no more than 10 years. On June 26 2019 the
Company received the “Approval of Approving CSG Holding Co. Ltd. to Issue Corporate Bonds to Qualified Investors”
issued by China Securities Regulatory Commission (ZJXK [2019] No. 1140). On March 24 2020 and March 25 2020
the Company issued the first batch of corporate bonds with total amount of RMB 2 billion and valid term of 3 years at
the issuance rate of 6% and completed the redemption and delisting on March 27 2023 (the original redemption date for
this bond was March 25 2023 but due to a statutory rest day it was postponed to the first trading day thereafter).
4. Public offering of A-share convertible corporate bonds
On 11 July 2022 the Company’s 2nd Extraordinary General Meeting of Shareholders in 2022 reviewed and approved
relevant proposals on the Company's public offering of A-share convertible corporate bonds and agreed to issue A-share
convertible corporate bonds to raise a total amount not exceed RMB 2800 million (inclusive) with a term of six years
from the date of issuance. Due to factors such as changes in the capital market and the timing of financing which resulted
in immature application and issuance conditions the Company did not make any substantial progress on the public
offering of A-share convertible corporate bonds during the valid period as resolved. As of 11 July 2023 the Company’s
plan for the public offering of A-share convertible corporate bonds expired and automatically lapsed. For further
information see the Announcement on the Expiry of the Plan for the Public Offering of A-share Convertible Corporate
Bonds (Announcement number: 2023-025) disclosed by the Company on http://www.cninfo.com.cn dated 12 July 2023.
5. The matter of the special fund of RMB 171 million for talent introduction
Regarding the special fund of RMB 171 million for talent introduction the Company filed an infringement compensation
lawsuit against Zeng Nan and others and Yichang Hongtai Real Estate Co. Ltd. on December 15 2021 and Shenzhen
Intermediate People's Court officially accepted it on January 28 2022. The first trial of the case was completed in
Shenzhen Intermediate People's Court on June 21 2022 and is currently awaiting judgment.
6. Postponed re-election of the Board of Directors and the Supervisory Committee
The term of office of the ninth Board of Directors and Supervisory Committee of the Company expired on 21 May 2023
and re-election is progressing steadily as of now. According to Articles 96 and 138 of the Articles of Association of CSG
Holding Co. Ltd. if a new director/supervisor is not re-elected in time upon the expiry of the term of office of a
84CSG Annual Report 2023
director/supervisor before the re-elected director/supervisor assumes his/her office the former director/supervisor shall
still perform the duties of a director/supervisor in accordance with the provisions of laws administrative regulations
departmental rules and the Articles of Association. Therefore the members of the ninth Board of Directors and
Supervisory Committee are still performing their duties in a normal manner and the re-election of the Board of Directors
and the Supervisory Committee would not have any adverse impact on the Company’s operation and governance.XVII. Significant events of subsidiaries of the Company
□ Applicable √ Not applicable
85CSG Annual Report 2023
Section VII. Changes in Shares and Particulars about
Shareholders
I. Changes in Share Capital
1. Changes in Share Capital
Unit: Share
Before the Change Increase/Decrease in the Change (+ -) After the Change
Capitaliz
New Bonus ation of Proportio
Amount Proportion shares Others Subtotal Amount
shares public n
issued
reserve
I. Restricted shares 4838249 0.16% -2794847 -2794847 2043402 0.07%
1. State-owned shares
2. State-owned legal
person’s shares
3. Other domestic shares 4838249 0.16% -2794847 -2794847 2043402 0.07%
Including: Domestic
legal person’s shares
Domestic natural
48382490.16%-2794847-279484720434020.07%
person’s shares
4. Foreign shares
Including: Foreign
legal person’s shares
Foreign natural
person’s shares
II. Unrestricted shares 3065853858 99.84% 2794847 2794847 3068648705 99.93%
1. RMB Ordinary shares 1956484798 63.71% 2794847 2794847 1959279645 63.80%
2. Domestically listed
110936906036.13%110936906036.13%
foreign shares
3. Overseas listed
foreign shares
4. Others
III. Total shares 3070692107 100.00% 0 0 3070692107 100.00%
Reason for equity changes
√Applicable □Not applicable
During the report period China Securities Depository and Clearing Corporation Limited adjusted the locked-up shares of
senior management in accordance with regulations and the Company’s restricted shares and unrestricted shares changed
accordingly.Approval on equity changes
□Applicable √Not applicable
86CSG Annual Report 2023
Transfer of ownership of changes in shares
□Applicable √Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to
common shareholders of Company in the latest year and period
□Applicable √Not applicable
Other information necessary to be disclosed or need to be disclosed under requirement from security regulators
□Applicable √ Not applicable
2. Changes of restricted shares
√Applicable □ Not applicable
Unit: Share
Number of Number of Number of Number of
Shareholders’ restricted shares shares restricted shares restricted Reason for
Released date
name at the beginning increased in shares released at the end of the restriction
of the period the Period in the Period Period
Releasing of executive lockup
Executive lockup
Chen Lin 1217299 1217299 stocks will be implemented
stocks shares
according to relevant policies.Releasing of executive lockup
Executive lockup
He Jin 673200 673200 stocks will be implemented
stocks shares
according to relevant policies.Releasing of executive lockup
Executive lockup
Wang Wenxin 115950 115950 stocks will be implemented
stocks shares
according to relevant policies.Releasing of executive lockup
Executive lockup
Chen Chunyan 36953 36953 stocks will be implemented
stocks shares
according to relevant policies.Locked in shares Releasing of director and
after the departure of executive lockup stocks will be
Wang Jian 1012000 1012000 0
directors and implemented according to
executives relevant policies.Locked in shares Releasing of supervisor lockup
Gao Changkun 375 375 0 after the departure of stocks will be implemented
supervisors according to relevant policies.Locked in shares Releasing of executive lockup
Lu Wenhui 912973 912973 0 after the departure of stocks will be implemented
executives according to relevant policies.Locked in shares Releasing of executive lockup
Yang Xinyu 869499 869499 0 after the departure of stocks will be implemented
executives according to relevant policies.total 4838249 0 2794847 2043402 -- --
II. Issuance and listing of Securities
1. Security issued (excluding preferred stock) in the report period
□Applicable √Not applicable
87CSG Annual Report 2023
2. Particulars about changes of total shares and shareholder structure as well as changes of assets and liability
structure
□ Applicable √ Not applicable
3. Existing internal staff shares
□ Applicable √ Not applicable
III. Particulars about shareholder and actual controller of the Company
1. Amount of shareholders of the Company and particulars about shares holding
Unit: Share
Total preference
Total shareholders Total preference shareholders
Total shareholders with
at the end of the with voting rights recovered
shareholders at voting rights
155443 month before this 150800 0 at end of the month before 0
the end of the recovered at end
annual report this annual report disclosed
report period of report period
disclosed (if applicable)
(if applicable)
Shareholder with above 5% shares hold or top 10 shareholders (Excluding shares lent through refinancing)
Number of share
Total shares pledged marked or
Changes in Amount of Amount of
Full name of Nature of Proportion of held at the end frozen
report restricted unrestricted
Shareholders shareholder shares held of report
period shares held shares held
period Share Amount
status
Foresea Life Insurance Domestic non
Co. Ltd. – state-owned legal 15.19% 466386874 0 0 466386874
HailiNiannian person
Foresea Life Insurance Domestic non
Co. Ltd. – Universal state-owned legal 3.86% 118425007 0 0 118425007
Insurance Products person
Domestic non
# Shenzhen Sigma
state-owned legal 2.35% 72303835 72303835 0 72303835
C&T Co. Ltd.person
Domestic non
Foresea Life Insurance
state-owned legal 2.11% 64765161 0 0 64765161
Co. Ltd. – Own Fund
person
China Galaxy
International Securities Foreign legal
1.34%41034578-175400041034578
(Hong Kong) Co. person
Limited
China Merchants
Foreign legal
Securities (Hong 1.11% 34109837 -3194154 0 34109837
person
Kong) Limited
Hong Kong Securities Foreign legal
0.85%261961144562069026196114
Clearing Co. Ltd. person
88CSG Annual Report 2023
VANGUARD
EMERGING Foreign legal
0.64%19595573230000019595573
MARKETS STOCK person
INDEX FUND
Pledged 18980000
Domestic non
Zhongshan Runtian
state-owned legal 0.62% 18983447 0 0 18983447 Marked 18980000
Investment Co. Ltd.person
Frozen 3447
VANGUARD TOTAL
INTERNATIONAL Foreign legal
0.57%175372130017537213
STOCK INDEX person
FUND
Strategic investors or general legal
person becomes top 10 shareholders due N/A
to shares issued (if applicable)
As of the end of the report period among shareholders as listed above Foresea Life Insurance
Co. Ltd.-HailiNiannian Foresea Life Insurance Co. Ltd.-Universal Insurance Products
Foresea Life Insurance Co. Ltd.-Own Fund are all held by Foresea Life Insurance Co. Ltd.Explanation on associated relationship
Shenzhen Jushenghua Co. Ltd. which holds 51% equity of Foresea Life Insurance Co. Ltd.among the aforesaid shareholders
holds 100% equity of Zhongshan Runtian Investment Co.Ltd and Chengtai Group Co. Ltd.through Shenzhen Hualitong Investment Co. Ltd. Chengtai Group Co. Ltd. holds
40187904 shares through China Galaxy International Securities (Hong Kong) Co. Limited.
Explanation of the above-mentioned
shareholders involving
N/A
entrusted/entrusted voting rights and
abstention from voting right
Special instructions on the existence of
special repurchase account among the N/A
top 10 shareholders (if any)
Particular about top ten shareholders with unrestricted shares held
Type of shares
Amount of unrestricted shares
Shareholders’ name
held at year-end
Type Amount
Foresea Life Insurance Co. Ltd. – HailiNiannian 466386874 RMB ordinary shares 466386874
Foresea Life Insurance Co. Ltd. – Universal
118425007 RMB ordinary shares 118425007
Insurance Products
# Shenzhen Sigma C&T Co. Ltd. 72303835 RMB ordinary shares 72303835
Foresea Life Insurance Co. Ltd. – Own Fund 64765161 RMB ordinary shares 64765161
China Galaxy International Securities (Hong Kong) Domestically listed
4103457841034578
Co. Limited foreign shares
Domestically listed
China Merchants Securities (Hong Kong) Limited 34109837 34109837
foreign shares
Hong Kong Securities Clearing Co. Ltd. 26196114 RMB ordinary shares 26196114
VANGUARD EMERGING MARKETS STOCK Domestically listed
1959557319595573
INDEX FUND foreign shares
Zhongshan Runtian Investment Co. Ltd. 18983447 RMB ordinary shares 18983447
VANGUARD TOTAL INTERNATIONAL STOCK Domestically listed
1753721317537213
INDEX FUND foreign shares
89CSG Annual Report 2023
As of the end of the report period among shareholders as listed above Foresea
Life Insurance Co. Ltd.-HailiNiannian Foresea Life Insurance Co. Ltd.-
Universal Insurance Products Foresea Life Insurance Co. Ltd.-Own Fund are
all held by Foresea Life Insurance Co. Ltd. Shenzhen Jushenghua Co. Ltd.Statement on associated relationship or consistent
which holds 51% equity of Foresea Life Insurance Co. Ltd. holds 100% equity
action among the above shareholders:
of Zhongshan Runtian Investment Co.Ltd and Chengtai Group Co. Ltd. through
Shenzhen Hualitong Investment Co. Ltd. Chengtai Group Co. Ltd. holds
40187904 shares through China Galaxy International Securities (Hong Kong)
Co. Limited.As of the end of the report period shareholder Shenzhen Sigma C&T Co. Ltd.holds 0 shares of the Company through an ordinary account and 72303835
Explanation on shareholders involving margin
shares of the Company through the customer credit transaction guarantee
business (if applicable)
securities account of Huatai Securities Co. Ltd. totaling 72303835 shares of
the Company.Special note: On July 11 2022 at the Company's Second Extraordinary General Meeting in 2022 Foresea Life Insurance
Co. Ltd. voted in favor of all proposals and Zhongshan Runtian Investment Co. Ltd. voted against all proposals
Chengtai Group Co. Ltd. voted against all the proposals with the shares held by China Galaxy International Securities
(Hong Kong) Co. Limited; on August 3 2022 at the Company's Third Extraordinary General Meeting in 2022 Foresea
Life Insurance Co. Ltd. voted in favor of all proposals and Zhongshan Runtian Investment Co. Ltd. voted against all
proposals.Top 10 shareholders involved in refinancing shares lending
□ Applicable √ Not applicable
Changes in top 10 shareholders compared with the prior period
√ Applicable □ Not applicable
Unit: share
Changes in top 10 shareholders compared with the end of the prior period
Shares in the ordinary account and
Newly added to or Shares lent in refinancing and not yet credit account plus shares lent in
exiting from top returned at the period-end refinancing and not yet returned at
Full name of shareholder
10 shareholders in the period-end
the report period As % of total share As % of total
Total shares Total shares
capital share capital
#Shenzhen Sigma C&T Co.Newly added 0 0.00% 72303835 2.35%
Ltd.Vanguard Total International
Newly added 0 0.00% 17537213 0.57%
Stock Index Fund
China Life Insurance Co.Ltd. - Traditional - General
Exiting 0 0.00% 0 0.00%
Insurance Products - 005L-
CT001 Shen
#He Xinhai Exiting 0 0.00% 0 0.00%
Whether the company’s top 10 common shareholders and the top 10 shareholders of ordinary shares subject to unlimited
sales have agreed to buy back transactions during the report period
□Yes √ No
The top 10 shareholders of ordinary shares and the top 10 shareholders of ordinary shares with unrestricted sales
conditions did not engage in any agreed repurchase transactions during the reporting period.
90CSG Annual Report 2023
2. Controlling shareholder of the Company
The nature of controlling shareholders: No holding body
The type of controlling shareholder: Not exist
Explanation on the Company without controlling shareholder
Currently the Company has no controlling shareholder. Foresea Life Insurance Co. Ltd. is the Company's largest
shareholder that has totally held 657577954 shares of the Company via Foresea Life Insurance Co. Ltd.–HailiNiannian
Foresea Life Insurance Co. Ltd.–universal insurance products Foresea Life Insurance Co. Ltd.–own fund Foresea Life
Insurance Co. Ltd.–a combination of its own funds together with Huatai till the end of the report period which accounts
for 21.41% of the Company’s total shares. Shenzhen Jushenghua Co. Ltd. with a 51% interest in the Company’s
shareholder Foresea Life Insurance Co. Ltd. holds a 51% interest in the Company’s shareholder Shenzhen Guanlong
Logistics Co. Ltd. via Shenzhen Hualitong Investment Co. Ltd. in addition to the holding of 100% equity interests in
the Company’s shareholders Zhongshan Runtian Investment Co. Ltd. and Chengtai Group Co. Ltd. And Zhongshan
Runtian Investment Co. Ltd. Chengtai Group Co. Ltd. Shenzhen Guanlong Logistics Co. Ltd. and Foresea Life
Insurance Co. Ltd. combined hold 728430489 shares in the Company accounting for 23.72% of the Company’s total
shares which is less than 30%. Meanwhile the number of directors recommended by the aforesaid shareholders was no
more than half of the total number of members of the Company’s Board of Directors.Other shareholders of the Company hold less than 5% of the shares.Changes of controlling shareholders in the report period
□ Applicable √ Not applicable
3. Actual controller of the Company and its concerted actors
The nature of actual controller: no actual controller
The type of actual controller: Not exist
Explanation on the Company without actual controller
Currently the Company has no actual controller. Foresea Life Insurance Co. Ltd. is the Company's largest shareholder
that has totally held 657577954 shares of the Company via Foresea Life Insurance Co. Ltd.–HailiNiannian Foresea
Life Insurance Co. Ltd.–universal insurance products Foresea Life Insurance Co. Ltd.–own fund Foresea Life Insurance
Co. Ltd.–a combination of its own funds together with Huatai till the end of the report period which accounts for 21.41%
of the Company’s total shares. Shenzhen Jushenghua Co. Ltd. with a 51% interest in the Company’s shareholder Foresea
Life Insurance Co. Ltd. holds a 51% interest in the Company’s shareholder Shenzhen Guanlong Logistics Co. Ltd. via
Shenzhen Hualitong Investment Co. Ltd. in addition to the holding of 100% equity interests in the Company’s
shareholders Zhongshan Runtian Investment Co. Ltd. and Chengtai Group Co. Ltd. And Zhongshan Runtian Investment
Co. Ltd. Chengtai Group Co. Ltd. Shenzhen Guanlong Logistics Co. Ltd. and Foresea Life Insurance Co. Ltd.combined hold 728430489 shares in the Company accounting for 23.72% of the Company’s total shares which is less
than 30%. Meanwhile the number of directors recommended by the aforesaid shareholders was no more than half of the
total number of members of the Company’s Board of Directors.Shareholders with over 10% shares held in ultimate controlling level
√Yes □No
□ Legal person √ Natural person
Shares held in ultimate controlling level
Shareholders Nationality Whether to obtain the right of abode in
91CSG Annual Report 2023
other countries or regions
Yao Zhenhua China No
Major occupations and duties Chairman of Shenzhen Baoneng Investment Group Co. Ltd.Situation of holding domestic and abroad
N/A
listed companies over the past 10 years
Changes of actual controller in the report period
□ Applicable √ Not applicable
Property right and controlling relationship between the largest shareholder and the Company is as follow:
Actual controller controlling of the Company by entrust or other assets management
□Applicable √Not applicable
4. The company's controlling shareholder or the largest shareholder and its concerted actor’s cumulative
pledged shares account for 80% of the company's shares held by them
□ Applicable √ Not applicable
5. Particulars about other legal person shareholders holding over 10% of the company's shares
□ Applicable √ Not applicable
6. Limitation on share reduction of controlling shareholders actual controllers recombination party and
other commitment subjects
□ Applicable √ Not applicable
IV. Specific implementation of share repurchase in the report period
Implementation progress of share repurchase
□ Applicable √ Not applicable
Implementation progress of reducing share repurchased by centralized bidding
□ Applicable √ Not applicable
92CSG Annual Report 2023
Section VIII. Preferred shares
□Applicable √ Not applicable
There were no preferred shares in the Company during the report period.Section IX. Bonds
□Applicable √ Not applicable
On the approval date of this report the Company does not have any existing bonds.
93CSG Annual Report 2023
Section X. Financial Report
I. Report of the Auditors
Type of Auditor’s Opinion Standard and unqualified
Issue date of Report of the Auditors April 24 2024
Name of Auditor’s organization Grant Thornton Zhitong Certified Public Accountants LLP
Reference number of Report of the Auditors GTCNSZ（2024）NO.441A014347
Name of CPA Su Yang Yang Hua
Auditor’s Report
To the shareholders of CSG HOLDING CO. LTD.I. Opinion
We have audited the financial statements of CSG Holding Co. Ltd. (hereinafter referred to as
"the Group") which comprise the consolidated and company balance sheets as of December 31 2023
and the consolidated and company statements of profit or loss consolidated and company statements
of cash flows consolidated and company statements of changes in equity and related notes to the
financial statements for the year then ended.In our opinion the accompanying financial statements present fairly in all material respects the
consolidated and company financial position of the Group as of December 31 2023 and the
consolidated and company financial performance and cash flows for the year then ended in
accordance with the Chinese Accounting Standards for Business Enterprises (ASBE).II. Basis of Opinion
We conducted our audit in accordance with the Chinese Standards on Auditing as applicable
in China. Our responsibilities under those standards are further described in the Auditor’s
Responsibilities for the Audit of the Financial Statements section of our report. We are
independent of the Group in accordance with the Code of Ethics for Professional Accountants in
China and have fulfilled our other ethical responsibilities in accordance with these requirements.We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our opinion.III. Key audit matters
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Key audit matters are those matters that in our professional judgment are of the most
significance in our audit of the financial statements for the current period. These matters were
addressed in the context of our audit of the financial statements as a whole and in forming our
opinion thereon we do not provide a separate opinion on these matters.
(A)Revenue recognition
For detailed disclosures please refer to Note of the financial statements.
1. Matter Description
The Group's sales revenue primarily comes from providing float glass photovoltaic glass
architectural glass solar industry-related products electronic glass and display devices to
customers. In the fiscal year 2023 the Group achieved operating revenue of 18194.86 million
yuan. Since revenue is one of the Group's key performance indicators and has a crucial impact on
the financial statements we identified revenue recognition as a key audit matter.
2. Audit response
We performed the following audit procedures mainly related to revenue recognition:
(1) Understanding and evaluating the design of internal controls related to revenue
recognition and testing the effectiveness of key control processes.
(2) Sampling inspection of significant sales contracts to identify contract terms and
conditions related to the control transfer point and assess whether the specific method of revenue
recognition by the Group complies with the Chinese Accounting Standards for Business
Enterprises (ASBE).
(3) Substantive analytical procedures on operating revenue and gross profit margins by
month product customer etc. to identify significant or abnormal fluctuations and analyze the
reasons for the fluctuations.
(4) Selecting samples and performing detailed testing on sales revenue for the current period
reviewing sales contracts verifying supporting documents related to revenue recognition
(including orders delivery notes customs declarations invoices etc.) and confirming the
authenticity and accuracy of revenue in conjunction with customer sales receipts.
(5) Employing sampling to select customers and performing circularization procedures on
their annual transaction amounts and accounts receivable balances.
(6) Conducting cutoff tests on revenue recognized before and after the balance sheet date
obtaining relevant supporting documents verifying key timing points of revenue recognition to
95CSG Annual Report 2023
ascertain whether revenue is recognized in the appropriate period.
(7) Checking whether revenue-related information has been appropriately presented and
disclosed in the financial statements.
(B) Provision for Impairment of Fixed Assets
For detailed disclosures please refer to Note of the financial statements.
1.Matter Description
As of December 31 2023 the book value of fixed assets in the consolidated financial
statements of the Group amounted to 13145.56 million yuan accounting for 43.30% of the total
assets in the consolidated financial statements which is the largest component of the consolidated
financial statement assets; the impairment loss provided for fixed assets during the reporting
period amounted to 251.24 million yuan. The management of the Group (hereinafter referred to
as "the management") assessed whether there were indicators of impairment for these fixed assets.For the fixed assets identified with indicators of impairment the management estimated the
recoverable amount of the fixed assets and compared it with the carrying amount to confirm the
amount of impairment provision to be recognized. As the identification of indicators of fixed
asset impairment and the measurement of recoverable amount involve significant accounting
estimates and professional judgment by management we identified the provision for impairment
of fixed assets as a key audit matter.
2. Audit response
We performed the following audit procedures mainly related to the provision for impairment
of fixed assets:
(1) Understanding and evaluating the design of internal controls related to fixed asset
management and testing the effectiveness of key control processes.
(2) Reviewing the methods and assumptions used by the Group for impairment testing of
fixed assets and evaluating whether the impairment methods employed by management comply
with the requirements of the Chinese Accounting Standards for Business Enterprises (ASBE).
(3) Physically inspecting fixed assets and observing their usage and storage conditions.
(4) Recalculating the recoverable amount of fixed assets and reviewing the evaluation
methods and key assumptions adopted by the external assessment institution hired by
management conducted by assessment experts appointed by registered accountants.
(5) Evaluating the competence professionalism and objectivity of the assessment experts
96CSG Annual Report 2023
appointed by management and the assessment experts appointed by registered accountants.
4. Other Matters
The management of CSG Holding Co. Ltd. is responsible for other information. Other
information includes the information covered in the 2023 annual report of CSG Holding Co. Ltd.but excludes the financial statements and our audit report.Our audit opinion on the financial statements does not cover other information and we do
not provide any form of assurance conclusion on other information.In conjunction with our audit of the financial statements our responsibility is to read the
other information and in doing so consider whether the other information is materially
inconsistent with the financial statements or our knowledge obtained during the audit process or
appears to be materially misstated.If we determine based on the work we have performed that other information is materially
misstated we should report that fact. We have nothing to report in this regard.
5. Responsibility of management and those charged with governance for financial
statements
The management of CSG Holding Co. Ltd. is responsible for preparing the financial
statements in accordance with the Chinese Accounting Standards for Business Enterprises (ASBE)
to achieve fair presentation and for designing implementing and maintaining internal control
necessary 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 intends to liquidate the Group cease operations
or have no other realistic option.The governance is responsible for overseeing the financial reporting process of CSG Holding
Co. Ltd..
6. Responsibility of certified public accountants for auditing 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 our audit opinion. Reasonable assurance is a high level of assurance but it is not a
guarantee that an audit conducted in accordance with auditing standards will always detect a
97CSG Annual Report 2023
material misstatement when it exists. Misstatements can result from fraud or error and the risk
of not detecting a material misstatement due to fraud is higher than the risk of not detecting a
material misstatement due to error.In the process of performing audit work in accordance with auditing standards we exercise
professional judgment and maintain professional skepticism. At the same time we also perform
the following tasks:
(1) Identify and assess the risk of material misstatement of the financial statements due to
fraud or error design and implement audit procedures to address these risks and obtain sufficient
and appropriate audit evidence as a basis for issuing the audit opinion. Since fraud may involve
collusion forgery intentional omissions misrepresentations or override of internal controls the
risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting
a material misstatement due to error.
(2) Understand internal controls related to the audit and design appropriate audit procedures
accordingly.
(3) Evaluate the appropriateness of management's selection of accounting policies and the
reasonableness of accounting estimates and related disclosures.
(4) Conclude on the appropriateness of management's use of the going concern assumption.
At the same time based on the audit evidence obtained conclude whether there is a significant
uncertainty that may cast significant doubt on the Group's ability to continue as a going concern.If we conclude that there is a significant uncertainty auditing standards require us to draw
attention in the audit report to the related disclosures in the financial statements; if the disclosures
are inadequate we should issue a modified audit opinion. Our conclusion is based on information
available as of the date of the audit report. However future events or circumstances may cause
the Group to be unable to continue as a going concern.
(5) Evaluate the overall presentation structure and content of the financial statements and
assess whether the financial statements reflect the transactions and events relevant to them fairly.
(6) Obtain sufficient and appropriate audit evidence regarding the financial information of
entities or business activities within the CSG Holding Co. Ltd. in order to issue an audit opinion.We are responsible for directing supervising and executing the group audit and we bear full
responsibility for the audit opinion.We communicate with governance regarding matters such as the planned scope of the audit
timing of the audit and significant audit findings including significant internal control
98CSG Annual Report 2023
deficiencies identified during the audit.We also provide a statement to governance regarding compliance with professional ethical
requirements related to independence and communicate with governance all relationships and
other matters that may be reasonably considered to affect our independence as well as the
safeguards implemented in relation to these matters.From the matters communicated with governance we determine which matters are of most
significance in our audit of the financial statements for the current period and thus constitute key
audit matters. We describe these matters in the audit report unless prohibited by laws and
regulations from publicly disclosing them or in very rare cases if it is reasonably expected that
communicating a matter in the audit report would cause negative consequences outweighing the
benefits in the public interest.Grant Thornton Zhitong Certified Certified Public Accountant of
Public Accountants LLP China
(Engagement Partner)
Beijing China Certified Public Accountant of
China
April 24 2024
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Financial Statement Notes
I. Basic information of the company
CSG HOLDING CO. LTD. (hereinafter referred to as the "Group") formerly known as CSG CO. LTD. is
invested by China Merchants Steam Navigation CompanyLtd Shenzhen Building Materials Industry
(Group) CompanyChina North Industries Shenzhen Corp.and Guangdong International Trust
&Investment Co. Ltd.which is a Chinese-foreign joint venture and established in September 1984.The
Group is registered and headquartered in ShenzhenGuangdong Province the People's Republic of
China.The Group publicly issued RMB ordinary shares ("A shares") and foreign shares ("B shares") to the
public in October 1991 and January 1992 respectively and listed them on the Shenzhen Stock Exchange
("Shenzhen Stock Exchange") in February 1992. "") listed for trading. As of 31 December 2023 the total
share capital of the Group was 3070692107 yuan with a par value of 1 yuan per share.The main business of the Group and its subsidiaries (hereinafter collectively referred to as the "Group")
are production and sales of float glass photovoltaic glass special glass engineering glass energy-saving
and glass-based energy products and production of polysilicon and solar modules. and sales production
and sales of electronic glass and display device and construction and operation of photovoltaic power
plants etc.These financial statements and notes to the financial statements were approved for issuance by the
Group's Board of Directors on 24 April 2024 .Please refer to the notes for details of the main subsidiaries included in the scope of consolidation this
year.II. Basics of Preparation of Financial Statements
These financial statements are prepared in accordance with the Accounting Standards for Business
Enterprises and their application guidelines interpretations and other relevant regulations issued by the
Ministry of Finance (collectively: " Accounting Standards for Business Enterprises " ). In addition the
Group also discloses relevant financial information in accordance with the China Securities Regulatory
Commission's "Information Disclosure and Preparation Rules for Companies that Offer Securities to the
Public No. 15 - General Provisions on Financial Reports ( Revised in 2023 ) ".Management has a reasonable expectation that the Group has and will have adequate resources to
continue in operational existence for the foreseeable future.The Group's accounting is based on the accrual basis. Except for certain financial instruments and
investment properties these financial statements are measured on a historical cost basis. If an asset is
impaired corresponding impairment provisions will be made in accordance with relevant regulations.
108CSG Annual Report 2023
III. Significant Accounting Policies and Accounting Estimates
The depreciation of fixed assets amortization of intangible assets capitalization conditions for R&D
expenses and revenue recognition policies based on its own production and operation characteristics.For specific accounting policies please refer to Note .
1、Statement on compliance with corporate accounting standards
This financial statement complies with the requirements of the Accounting Standards for Business
Enterprises and truly and completely reflects the Group 's consolidated and company financial status as
of December 31 2023 as well as the consolidated and company operating results consolidated and
company cash flows and other relevant information in 2023 .
2、Accounting period
The Group adopts the Gregorian calendar year that is from January 1 to December 31 each year.
3、Business cycle
The Group's operating cycle is 12 months.
4、Reporting currency
The Group and its domestic subsidiaries use RMB as their functional currency for accounting. The Group's
overseas subsidiaries determine their recording currency based on the currency of the main economic
environment in which they operate. The currency used by the Group in preparing these financial
statements is RMB.
5、Materiality criteria determination method and selection basis
Item Materiality criterion
Significant single provision for bad debts in accounts The amount of individual accounts receivable provision
receivable accounts for over 5% of the combined accounts receivable
balance
Significant single provision for bad debts in other The amount of individual other receivables provision
receivables accounts for over 10% of the combined other receivables
balance
Significant write-off of accounts receivable/other The impact on the company's current profit and loss
receivables accounts for over 5% of the net profit absolute value for the
most recent audited fiscal year and exceeds 1 million yuan
in absolute amount
Significant construction in progress The budgeted investment amount accounts for over 5% of
the recent audited attributable equity to the parent
company
Significant non-wholly owned subsidiaries The subsidiary's total assets account for over 5% of the
consolidated total assets
109CSG Annual Report 2023
6、Accounting treatment methods for business combinations under the same control and those not under
the same control
（1）Business combination under common control
For business mergers under common control the assets and liabilities of the merged party acquired by
the merging party during the merger shall be measured based on the book value of the merged party in
the consolidated financial statements of the ultimate controlling party on the merger date. The difference
between the book value of the merger consideration (or the total face value of the shares issued) and the
book value of the net assets obtained in the merger is adjusted to the capital reserve (share premium). If
the capital reserve (share premium) is insufficient to offset it the retained earnings are adjusted.The merger of enterprises under the same control is realized step by step through multiple transactions.The assets and liabilities of the merged party acquired by the merging party in the merger shall be
measured based on the book value in the consolidated financial statements of the ultimate controlling
party on the date of merger; the book value of the investments held before the merger plus the book value
of the newly paid consideration on the date of merger The difference between the sum and the book value
of the net assets obtained in the merger shall be adjusted to the capital reserve (equity premium) . If the
capital reserve is insufficient for offset the retained earnings shall be adjusted. The long-term equity
investment held by the merging party before it obtained control of the merged party has been confirmed
to be relevant between the date of acquiring the original equity and the date when the merging party and
the merged party are under the final control of the same party whichever is later to the date of merger.Changes in profits and losses other comprehensive income and other owners' equity should be offset
against the opening retained earnings or current profits and losses during the comparative statement
period respectively.
（2）Business combination not under common control
For business combinations not under common control the combination cost shall be the assets paid
liabilities incurred or assumed and the fair value of equity securities issued to obtain control of the
purchased party on the acquisition date. On the purchase date the acquired assets liabilities and
contingent liabilities of the purchased party are recognized at fair value.If the merger cost is greater than the fair value share of the acquiree's identifiable net assets obtained in
the mergerThe difference is recognized as goodwill and is subsequently measured at cost less
accumulated impairment reserves; if the merger cost is less than the acquiree's identifiable net assets
acquired in the merger the difference is recognized as goodwill. The difference between the fair value of
the net assets will be included in the current profit and loss after review.The merger of enterprises not under common control is realized step by step through multiple transactions.The merger cost is the sum of the consideration paid on the purchase date and the fair value of the
purchased party's equity held before the purchase date on the purchase date. For the equity of the
purchased party that has been held before the purchase date it will be remeasured according to the fair
value of the equity on the purchase date and the difference between the fair value and its book value will
be included in the investment income of the current period; The purchaser's equity held before the
110CSG Annual Report 2023
purchase date involves other comprehensive income changes in other owners' equity are converted into
current income on the purchase date other comprehensive income arising from the investee's
remeasurement of the net liabilities or changes in net assets of the defined benefit plan and other
comprehensive income originally designated as fair value Except for other comprehensive income related
to investments in non-trading equity instruments that are measured and whose changes are included in
other comprehensive income.
（3）Handling of Transaction Costs in Business Combinations
Intermediary fees such as auditing legal services evaluation and consulting and other related
management fees incurred for business mergers are included in the current profit and loss when incurred.The transaction costs of equity securities or debt securities issued as consideration for the merger shall
be included in the initial recognition amount of the equity securities or debt securities.
7、Judgment standards for control and methods for preparing consolidated financial statements
（1）Control criteria
The scope of consolidation in consolidated financial statements is determined based on control. Control
means that the Group has power over the invested unit enjoys variable returns by participating in the
relevant activities of the invested unit and has the ability to use its power over the invested unit to affect
its return amount. The Group will reassess when changes in relevant facts and circumstances lead to
changes in the relevant elements involved in the definition of control.When judging whether to include structured entities into the scope of consolidation the Group
comprehensively considers all facts and circumstances including assessing the purpose and design of
the structured entities identifying the types of variable returns and whether it bears part or all of the
returns by participating in its related activities. Evaluate whether the structured entity is controlled based
on variability etc.
（2）How to prepare consolidated financial statements
The consolidated financial statements are based on the financial statements of the Group and its
subsidiaries and are prepared by the Group based on other relevant information. When preparing
consolidated financial statements the accounting policies and accounting period requirements of the
Group and its subsidiaries are consistent and significant inter-company transactions and balances are
offset.Subsidiaries and businesses that are added due to business combinations under the same control during
the reporting period are deemed to be included in the scope of consolidation of the Group from the date
they are both controlled by the ultimate controlling party. The operating results and cash flows from the
date of the announcement are included in the consolidated income statement and consolidated cash flow
statement respectively.For subsidiaries and businesses that are added due to business combinations not under common control
during the reporting period the income expenses and profits of the subsidiaries and businesses from
111CSG Annual Report 2023
the date of acquisition to the end of the reporting period are included in the consolidated income statement
and their cash flows are included in the consolidated cash flow statement.The part of the subsidiary's shareholders' equity that is not owned by the Group is listed separately as
minority shareholders' equity in the consolidated balance sheet under shareholders' equity; the share of
the subsidiary's current net profit and loss that is minority shareholders' equity is listed in the consolidated
income statement. The net profit item is listed under the item "Profits and losses of minority shareholders" .If the losses of a subsidiary shared by minority shareholders exceed the minority shareholders' share of
the opening owner's equity of the subsidiary the balance will still offset the minority shareholders' equity.
（3）Purchase of minority shareholders' equity in subsidiaries
The difference between the newly acquired long-term equity investment cost due to the purchase of
minority shares and the share of the subsidiary's net assets calculated continuously from the date of
purchase or merger based on the new shareholding ratio and without losing control The difference
between the disposal price obtained from the partial disposal of the equity investment in the subsidiary
and the corresponding share of the subsidiary's net assets calculated continuously from the date of
purchase or merger date corresponding to the disposal of the long-term equity investment shall be
adjusted in the consolidated balance sheet. Capital reserve (equity premium/capital premium) if the
capital reserve is insufficient to offset the retained earnings will be adjusted.
（4）Treatment of Loss of Control of Subsidiaries
If the control over the original subsidiary is lost due to the disposal of part of the equity investment or other
reasons the remaining equity shall be remeasured according to its fair value on the date of loss of control;
the sum of the consideration obtained from the disposal of the equity and the fair value of the remaining
equity shall be less Calculated based on the original shareholding ratio the sum of the share of the book
value of the net assets and goodwill of the original subsidiary calculated continuously from the date of
purchase shall be included in the investment income in the current period when control is lost.Other comprehensive income related to the equity investment of the original subsidiary should be
accounted for on the same basis as the original subsidiary's direct disposal of relevant assets or liabilities
when the control is lost. Any income related to the original subsidiary that involves accounting under the
equity method other changes in owners' equity should be transferred to the current profits and losses
when control is lost.
8、Determination criteria for cash and cash equivalents
Cash refers to cash on hand and deposits that can be used for payment at any time. Cash equivalents
refer to investments held by the Group that are short-term highly liquid easily convertible into known
amounts of cash and have little risk of value changes.
112CSG Annual Report 2023
9、Foreign currency business and foreign currency statement conversion
（1）Foreign currency business
The Group's foreign currency business is converted into the recording currency amount based on the spot
exchange rate on the date of the transaction.On the balance sheet date foreign currency monetary items are converted using the spot exchange rate
on the balance sheet date. The exchange difference arising from the difference between the spot
exchange rate on the balance sheet date and the spot exchange rate at the time of initial recognition or
the previous balance sheet date is included in the current profit and loss; for foreign currency non-
monetary items measured at historical cost the spot exchange rate on the date of the transaction is still
used The foreign currency non-monetary items measured at fair value shall be converted at the spot
exchange rate on the date when the fair value is determined. The difference between the converted
accounting functional currency amount and the original accounting functional currency amount shall be
converted according to the non-monetary accounting currency amount. The nature of monetary items is
included in current profits and losses or other comprehensive income.
（2）Translation of foreign currency financial statements
On the balance sheet date when converting the foreign currency financial statements of overseas
subsidiaries the asset and liability items in the balance sheet are translated using the spot exchange rate
on the balance sheet date. Except for "undistributed profits" shareholders' equity items include other
items. Converted using the spot exchange rate on the date of occurrence.Income and expense items in the income statement are translated using the spot exchange rate on the
date of transaction.All items in the cash flow statement are translated according to the spot exchange rate on the date when
the cash flow occurs. The impact of exchange rate changes on cash is regarded as an adjustment item
and is reflected in the "Impact of exchange rate changes on cash and cash equivalents" separately in the
cash flow statement.Differences arising from the translation of financial statements are reflected in the "other comprehensive
income" item under the shareholders' equity item in the balance sheet.When an overseas operation is disposed of and control is lost the translation difference of the foreign
currency statements listed under the shareholders' equity item in the balance sheet and related to the
overseas operation shall be transferred to the current profit and loss of the disposal in full or in proportion
to the disposal of the overseas operation.
10、Financial tool
A financial instrument is a contract that forms a financial asset of one party and a financial liability or equity
instrument of another party.
113CSG Annual Report 2023
（1）Recognition and derecognition of financial instruments
The Group recognizes a financial asset or financial liability when it becomes a party to a financial
instrument contract.Financial assets shall be derecognized if they meet one of the following conditions:
* The contractual right to receive cash flows from the financial asset terminates;
* The financial asset has been transferred and meets the following conditions for derecognition of
financial asset transfer.If the current obligation of a financial liability has been discharged in whole or in part the financial liability
or part of it shall be derecognised. If the Group (debtor) signs an agreement with its creditors to replace
existing financial liabilities by assuming new financial liabilities and the contract terms of the new financial
liabilities are substantially different from the existing financial liabilities the existing financial liabilities will
be derecognized and the new financial liabilities will be recognized at the same time.When financial assets are bought and sold in a regular manner accounting recognition and derecognition
will be carried out based on the transaction date.
（2）Classification and measurement of financial assets
Upon initial recognition the Group classifies financial assets into the following three categories based on
the business model of managing financial assets and the contractual cash flow characteristics of financial
assets: financial assets measured at amortized cost financial assets measured at fair value through other
comprehensive income and financial assets measured at fair value through profits and losses.Financial assets are measured at fair value upon initial recognition. For financial assets measured at fair
value through profit and loss the relevant transaction costs are directly included in the current profit and
loss; for other types of financial assets the relevant transaction costs are included in the initial recognition
amount. For receivables arising from the sale of products or provision of services that do not include or
take into account significant financing components the amount of consideration that the Group is
expected to be entitled to receive shall be deemed as the initial recognition amount.Financial assets measured at amortized cost
The Group classifies financial assets that meet the following conditions and are not designated as
measured at fair value through profit or loss as financial assets measured at amortized cost:
* The Group's business model for managing this financial asset is aimed at collecting contractual
cash flows;
* The contractual terms of the financial asset provide that the cash flows generated on a specific
date are solely payments of principal and interest based on the outstanding principal amount.After initial recognition such financial assets are measured at amortized cost using the effective interest
rate method. Gains or losses arising from financial assets that are measured at amortized cost and are
114CSG Annual Report 2023
not part of any hedging relationship are included in the current profit and loss when they are derecognized
amortized according to the effective interest method or impairment is recognized.Financial assets measured at fair value through other comprehensive income
The Group classifies financial assets that meet the following conditions and are not designated as
measured at fair value through profit or loss as financial assets at fair value through other comprehensive
income:
* The Group's business model for managing the financial assets aims at both collecting contractual
cash flows and selling the financial assets;
* The contractual terms of the financial asset provide that the cash flows generated on a specific
date are solely payments of principal and interest based on the outstanding principal amount.After initial recognition such financial assets are subsequently measured at fair value. Interest
impairment losses or gains and exchange gains and losses calculated using the effective interest rate
method are included in the current profit and loss and other gains or losses are included in other
comprehensive income. When derecognition is terminated the accumulated gains or losses previously
included in other comprehensive income will be transferred out of other comprehensive income and
included in the current profit and loss.Financial assets measured at fair value through profits and losses
Except for the above-mentioned financial assets measured at amortized cost and at fair value through
other comprehensive income the Group classifies all remaining financial assets as financial assets at fair
value through profit or loss. At the time of initial recognition in order to eliminate or significantly reduce
accounting mismatches the Group irrevocably designated some financial assets that should have been
measured at amortized cost or at fair value through other comprehensive income as financial assets
measured through profits and losses.After initial recognition such financial assets are subsequently measured at fair value and the resulting
gains or losses (including interest and dividend income) are included in the current profits and losses
unless the financial assets are part of a hedging relationship.The business model for managing financial assets refers to how the Group manages financial assets to
generate cash flow. The business model determines whether the source of cash flow from the financial
assets managed by the Group is collection of contractual cash flow sale of financial assets or both. The
Group determines the business model for managing financial assets based on objective facts and specific
business objectives for managing financial assets determined by key management personnel.The Group evaluates the contractual cash flow characteristics of financial assets to determine whether
the contractual cash flows generated by the relevant financial assets on a specific date are only payments
of principal and interest based on the outstanding principal amount. Among them principal refers to the
fair value of the financial asset at the time of initial recognition; interest includes consideration for the time
value of money the credit risk associated with the outstanding principal amount in a specific period and
other basic lending risks costs and profits. In addition the Group evaluates contract terms that may cause
changes in the time distribution or amount of contractual cash flows of financial assets to determine
whether they meet the requirements of the above contractual cash flow characteristics.
115CSG Annual Report 2023
Only when the Group changes its business model for managing financial assets all affected relevant
financial assets will be reclassified on the first day of the first reporting period after the change in business
model. Otherwise financial assets shall not be reclassified after initial recognition. .Financial assets are measured at fair value upon initial recognition. For financial assets measured at fair
value through profit and loss the relevant transaction costs are directly included in the current profit and
loss; for other types of financial assets the relevant transaction costs are included in the initial recognition
amount. For accounts receivable arising from the sale of products or provision of services that do not
include or take into account significant financing components the amount of consideration that the Group
is expected to be entitled to receive shall be deemed as the initial recognition amount.
（3）Classification and measurement of financial liabilities
The Group's financial liabilities are classified upon initial recognition into: financial liabilities measured at
fair value through profit or loss and financial liabilities measured at amortized cost. For financial liabilities
that are not classified as measured at fair value through profit and loss relevant transaction costs are
included in their initial recognition amount.Financial liabilities measured at fair value through profit or loss
Financial liabilities at fair value through profit or loss include trading financial liabilities and financial
liabilities designated as fair value through profit or loss upon initial recognition. Such financial liabilities
are subsequently measured at fair value and gains or losses arising from changes in fair value as well
as dividends and interest expenses related to such financial liabilities are included in the current profits
and losses.Financial liabilities measured at amortized cost
Other financial liabilities adopt the actual interest rate method and are subsequently measured at
amortized cost. Gains or losses arising from derecognition or amortization are included in the current
profits and losses.The difference between financial liabilities and equity instruments
Financial liabilities refer to liabilities that meet one of the following conditions:
* Contractual obligation to deliver cash or other financial assets to other parties.* Contractual obligations to exchange financial assets or financial liabilities with other parties under
potentially adverse conditions.* Non-derivative contracts that must or can be settled with the enterprise's own equity instruments in the
future and the enterprise will deliver a variable number of its own equity instruments according to the
contract.* Derivative contracts that must or can be settled with the enterprise's own equity instruments in the
future except for derivative contracts that exchange a fixed number of its own equity instruments for a
fixed amount of cash or other financial assets.
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Equity instruments refer to contracts that prove ownership of the remaining equity in the assets of an
enterprise after deducting all liabilities.If the Group cannot unconditionally avoid delivering cash or other financial assets to fulfill a contractual
obligation the contractual obligation meets the definition of a financial liability.If a financial instrument must be settled or can be settled with the Group's own equity instruments it is
necessary to consider whether the Group's own equity instruments used to settle the instrument are used
as a substitute for cash or other financial assets or to enable the holders of the instrument to The
remaining interest in the issuer's assets after deducting all liabilities. If it is the former the instrument is a
financial liability of the Group; if it is the latter the instrument is an equity instrument of the Group.
（4）Fair value of financial instruments
Note for the method of determining the fair value of financial assets and financial liabilities.
（5）Impairment of financial assets
Based on expected credit losses the Group performs impairment accounting on the following items and
recognizes loss provisions:
* Financial assets measured at amortized cost;
* Receivables and debt investments measured at fair value through other comprehensive income ;
* Contract assets as defined in "Accounting Standards for Business Enterprises No. 14 - Revenue ";
* Lease receivables;
* Financial guarantee contracts (except those that are measured at fair value and whose changes
are included in current profits and losses the transfer of financial assets does not meet the conditions
for derecognition or the financial assets continue to be involved in the transferred financial assets).Measurement of expected credit losses
Expected credit losses refer to the weighted average of the credit losses of financial instruments with the
risk of default as the weight. Credit loss refers to the difference between all contractual cash flows
receivable under the contract and all cash flows expected to be received by the Group discounted at the
original effective interest rate that is the present value of all cash shortfalls.The Group considers reasonable and well-founded information about past events current conditions and
predictions of future economic conditions and weights the risk of default to calculate the difference
between the cash flows receivable under the contract and the cash flows expected to be received. The
probability-weighted amount of the present value is recognized as the expected credit loss.The Group measures the expected credit losses of financial instruments at different stages respectively.If the credit risk of a financial instrument has not increased significantly since initial recognition it is in the
first stage and the Group will measure loss provisions based on the expected credit losses in the next 12
117CSG Annual Report 2023
months; if the credit risk of a financial instrument has increased significantly since initial recognition but
has not yet occurred If the financial instrument is credit-impaired it is in the second stage and the Group
measures the loss provision based on the expected credit losses for the entire duration of the instrument;
if the financial instrument has been credit-impaired since initial recognition it is in the third stage and the
Group measures the expected credit losses for the entire duration of the instrument. The expected credit
losses during the duration are measured as loss provisions.For financial instruments with low credit risk on the balance sheet date the Group assumes that its credit
risk has not increased significantly since initial recognition and measures loss provisions based on
expected credit losses within the next 12 months.Lifetime expected credit losses refer to the expected credit losses caused by all possible default events
that may occur during the entire expected life of a financial instrument. Expected credit losses in the next
12 months refer to the default events of financial instruments that may occur within 12 months after the
balance sheet date (if the expected duration of the financial instrument is less than 12 months the
expected duration) Expected credit losses are part of the expected credit losses throughout the entire
duration.When measuring expected credit losses the maximum period that the Group needs to consider is the
longest contract period for which the enterprise faces credit risk (including consideration of renewal
options).For financial instruments in the first and second stages and with lower credit risk the Group calculates
interest income based on its Carrying Amount before impairment provisions and actual interest rate. For
financial instruments in the third stage interest income is calculated based on its Carrying Amount minus
the amortized cost and actual interest rate after impairment provisions have been made.For receivables such as notes receivable accounts receivable receivable financing other receivables
and contract assets if the credit risk characteristics of a certain customer are significantly different from
other customers in the portfolio or the credit risk of the customer If the characteristics of the receivables
change significantly the Group shall make a separate provision for bad debts for the receivables. In
addition to the receivables for which bad debt provisions are made individually the Group divides the
receivables into groups based on credit risk characteristics and calculates bad debt provisions on a group
basis.Notes receivable accounts receivable and contract assets
For notes receivable and accounts receivable regardless of whether there is a significant financing
component the Group always measures its loss provisions at an amount equivalent to the expected credit
losses during the entire duration.When the information on expected credit losses cannot be assessed at a reasonable cost for a single
financial asset the Group divides notes receivable and accounts receivable into groups based on credit
risk characteristics and calculates expected credit losses on the basis of the groups. The basis for
determining the group is as follows:
A. Notes receivable
* Notes Receivable Portfolio 1: Bank Acceptance Bill
118CSG Annual Report 2023
* Notes Receivable Portfolio 2: Commercial Acceptance Bill
B. Accounts receivable
* Accounts receivable portfolio 1: Non-related party customers
* Accounts Receivable Portfolio 2: Related Party Customers
For notes receivable and contract assets divided into portfolios the Group refers to historical credit loss
experience combined with current conditions and predictions of future economic conditions and
calculates expected credit losses through default risk exposure and the expected credit loss rate
throughout the duration.For accounts receivable divided into portfolios the Group refers to historical credit loss experience
combined with current conditions and predictions of future economic conditions to prepare a comparison
table between the aging/overdue days of accounts receivable and the expected credit loss rate for the
entire duration. Calculate expected credit losses. The aging of accounts receivable is calculated from the
date of confirmation / the number of overdue days is calculated from the date of expiration of the credit
period.Other receivables
The Group divides other receivables into several combinations based on credit risk characteristics and
calculates expected credit losses on the basis of the combinations. The basis for determining the
combinations is as follows:
* Other receivables portfolio 1: Amounts due from non-related parties
* Other receivables portfolio 2: Amounts due from related parties
For other receivables classified into portfolios the Group calculates expected credit losses through the
default risk exposure and the expected credit loss rate within the next 12 months or throughout the
duration. For other receivables grouped by aging the aging is calculated from the date of confirmation.Debt investment other debt investment
For debt investments and other debt investments the Group calculates expected credit based on the
nature of the investment and various types of counterparties and risk exposures through default risk
exposure and expected credit loss rate within the next 12 months or throughout the duration.Assessment of significant increase in credit risk
The Group compares the risk of default of a financial instrument on the balance sheet date with the risk
of default on the initial recognition date to determine the relative change in the default risk of the financial
instrument during its expected duration to assess whether the credit risk of the financial instrument has
increased significantly since its initial recognition.When determining whether the credit risk has increased significantly since initial recognition the Group
considers reasonable and supportable information including forward-looking informationthat can be
obtained without unnecessary additional cost or effort. Information considered by the Group includes:
119CSG Annual Report 2023
* The debtor fails to pay the principal and interest on the due date of the contract;
* an actual or expected significant deterioration in the external or internal credit rating (if any) of the
financial instrument;
* The actual or expected serious deterioration in the debtor’s operating results;
* Existing or expected changes in the technological market economic or legal environment will have
a significant adverse impact on the debtor's ability to repay the Group's debt.Depending on the nature of the financial instrument the Group assesses whether there is a significant
increase in credit risk on the basis of a single financial instrument or a combination of financial instruments.When evaluating based on a portfolio of financial instruments the Group can classify financial instruments
based on common credit risk characteristics such as overdue information and credit risk ratings.If it is overdue for more than 30 days the Group determines that the credit risk of the financial instrument
has increased significantly.The Group believes that financial assets default in the following circumstances:
* It is unlikely that the borrower will pay in full what it owes the Group an assessment that does not
take into account recourse actions by the Group such as the realization of collateral (if held);
* Financial assets are overdue for more than 90 days.Credit-impaired financial assets
The Group assesses whether credit impairment has occurred on financial assets measured at amortized
cost and debt investments measured at fair value through other comprehensive income on the balance
sheet date. When one or more events occur that have an adverse impact on the expected future cash
flows of a financial asset the financial asset becomes a credit-impaired financial asset. Evidence that a
financial asset has been credit-impaired includes the following observable information:
* The issuer or debtor encounters significant financial difficulties;
* The debtor breaches the contract such as default or overdue payment of interest or principal;
* The Group grants the debtor concessions that it would not have made under any other
circumstances due to economic or contractual considerations related to the debtor's financial difficulties;
* the likelihood that the debtor will go bankrupt or undergo other financial reorganization;
* Financial difficulties of the issuer or debtor result in the disappearance of an active market for the
financial asset.Presentation of expected credit loss provisions
In order to reflect changes in the credit risk of financial instruments since initial recognition the Group re-
measures expected credit losses on each balance sheet date and the resulting increase or reversal of
loss provisions shall be accounted for as impairment losses or gains into current profit and loss. For
120CSG Annual Report 2023
financial assets measured at amortized cost the loss provision is reduced by the book value of the
financial assets listed in the balance sheet; for debt investments measured at fair value through other
comprehensive income the Group's other comprehensive income The loss provision is recognized in
income and does not deduct the book value of the financial asset.Write off
If the Group no longer reasonably expects that the contractual cash flows of a financial asset can be fully
or partially recovered it will directly write down the Carrying Amount of the financial asset. Such a write-
down constitutes the derecognition of the relevant financial asset. This situation usually occurs when the
Group determines that the debtor does not have the assets or sources of income to generate sufficient
cash flow to repay the amount that will be written down. However in accordance with the Group's
procedures for recovering due amounts financial assets that are written down may still be affected by
execution activities.If a financial asset that has been written down is later recovered the reversal of the impairment loss will
be included in the profit and loss of the current period of recovery.
（6）Financial asset transfer
The transfer of financial assets refers to the transfer or delivery of financial assets to another party (the
transfer-in party) other than the issuer of the financial assets.If the Group has transferred substantially all risks and rewards of ownership of a financial asset to the
transferee the financial asset shall be derecognised; if the Group has retained substantially all risks and
rewards of ownership of the financial asset the financial asset shall not be derecognised.If the Group neither transfers nor retains substantially all the risks and rewards of ownership of a financial
asset it shall handle the following situations respectively: if it gives up control of the financial asset the
financial asset shall be derecognised and the assets and liabilities incurred shall be recognized; if it has
not given up control of the financial asset If the financial asset is controlled the relevant financial assets
shall be recognized to the extent of its continued involvement in the transferred financial assets and the
relevant liabilities shall be recognized accordingly.
（7）Offset of financial assets and financial liabilities
When the Group has the legal right to offset the recognized financial assets and financial liabilities and is
currently able to enforce such legal rights and the Group plans to settle on a net basis or to realize the
financial assets and pay off the financial liabilities at the same time the financial assets and financial
liabilities will be Financial liabilities are presented in the balance sheet at the amount after offsetting each
other. Otherwise financial assets and financial liabilities are presented separately in the balance sheet
and are not offset against each other.
11、Fair value measurement
Fair value refers to the price that can be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants on the measurement date.
121CSG Annual Report 2023
The Group measures relevant assets or liabilities at fair value assuming that an orderly transaction to
sell assets or transfer liabilities is conducted in the main market for the relevant assets or liabilities; if there
is no main market the Group assumes that the transaction is in the most advantageous market for the
relevant assets or liabilities. The market proceeds. The main market (or the most advantageous market)
is the trading market that the Group can enter on the measurement date. The Group adopts the
assumptions used by market participants to maximize their economic interests when pricing the asset or
liability.For financial assets or financial liabilities that have an active market the Group determines their fair value
using quoted prices in the active market. If there is no active market for a financial instrument the Group
uses valuation techniques to determine its fair value.When measuring non-financial assets at fair value the ability of market participants to use the asset for
its best purpose to generate economic benefits is considered or the ability to sell the asset to other market
participants that can be used for its best purpose to generate economic benefits.The Group adopts valuation techniques that are applicable under the current circumstances and
supported by sufficient available data and other information. It gives priority to the use of relevant
observable input values and unobservable input values only uses when the observable input values
cannot be obtained or are impractical to obtain..For assets and liabilities measured or disclosed at fair value in financial statements the fair value level to
which they belong is determined based on the lowest level input value that is significant to the overall fair
value measurement: the first level input value is the value that can be measured on the measurement
date. The unadjusted quoted price of the same asset or liability obtained in the active market; the second
level input value is the directly or indirectly observable input value of the relevant assets or liabilities in
addition to the first level input value; the third level input value is Unobservable inputs to related assets or
liabilities.At each balance sheet date the Group reassesses the assets and liabilities recognized in the financial
statements that continue to be measured at fair value to determine whether there is a transition between
fair value measurement levels.
12、Inventories
（1）Inventory classification
The Group's inventories are divided into raw materials work in progress inventory goods and turnover
materials.
（2）Valuation method for issued inventory
The Group's inventories are valued at actual cost when acquired. Raw materials inventory etc. are priced
using the weighted average method when shipped.
122CSG Annual Report 2023
（3）Methods of Provision for inventories
On the balance sheet date inventories are measured at the lower of cost and net realizable value. When
the net realizable value is lower than the cost a provision for inventory depreciation is made.Net realizable value is the estimated selling price of the inventory minus the estimated costs to be incurred
upon completion estimated selling expenses and related taxes. When determining the net realizable
value of inventories it is based on the conclusive evidence obtained and the purpose of holding the
inventories and the impact of events after the balance sheet date are also considered.The Group usually accrues inventory depreciation provisions based on individual inventory items. For
inventories with large quantities and low unit prices inventory depreciation provisions are made according
to the inventory category.On the balance sheet date if the factors that previously caused the inventory value to be written down
have disappeared the inventory depreciation provision shall be reversed within the amount originally
accrued.
（4）Inventory system
The Group adopts the perpetual inventory system.
13、Long-term investment
Long-term equity investments include equity investments in subsidiaries joint ventures and associates.The associates of the Group are those that the Group can exert significant influence on the invested units.
（1）Initial measurement of investment cost
Long-term equity investments resulting from business combinations: For long-term equity investments
obtained from business combinations under common control the share of the book value of the owner's
equity of the merged party in the consolidated financial statements of the ultimate controlling party will be
used as the investment cost on the date of merger ; not under the same control For long-term equity
investments obtained through a business merger the investment cost of the long-term equity investment
shall be based on the merger cost.For long-term equity investments obtained by other means: for long-term equity investments obtained by
paying cash the actual purchase price paid will be used as the initial investment cost; for long-term equity
investments obtained by issuing equity securities the fair value of the equity securities issued will be used
as the initial investment cost.
（2）Subsequent measurement and profit and loss recognition methods
Investments in subsidiaries are accounted for using the cost method unless the investment qualifies as
held for sale; investments in associates and joint ventures are accounted for using the equity method.
123CSG Annual Report 2023
For long-term equity investments accounted for using the cost method in addition to the actual price paid
when acquiring the investment or the cash dividends or profits that have been declared but not yet
distributed included in the consideration the cash dividends or profits declared to be distributed by the
investee shall be recognized as investment income for current profit and loss.For long-term equity investments accounted for using the equity method if the initial investment cost is
greater than the fair value share of the investee’s identifiable net assets that should be enjoyed at the
time of investment the investment cost of the long-term equity investment will not be adjusted; if the initial
investment cost is less than the investment the investee’s share of the identifiable net assets should be
enjoyed If the fair value share of net assets is identified the book value of the long-term equity investment
will be adjusted and the difference will be included in the current profit and loss of the investment.When accounting using the equity method investment income and other comprehensive income are
recognized respectively according to the share of the net profit or loss and other comprehensive income
realized by the investee that should be enjoyed or shared and the book value of the long-term equity
investment is adjusted at the same time; in accordance with the declaration of the investee The portion
of the distributed profits or cash dividends that should be calculated will reduce the book value of the long-
term equity investment accordingly; for other changes in the owner's equity of the investee other than net
profit and loss other comprehensive income and profit distribution the book value of the long-term equity
investment will be adjusted and Included in capital reserves (other capital reserves). When confirming the
share of the investee's net profits and losses the fair value of the investee's identifiable assets when the
investment is obtained is used as the basis and in accordance with the Group's accounting policies and
accounting periods the net profit of the investee is determined. Make adjustments and confirm.If it is possible to exert significant influence on the investee or implement joint control but does not
constitute control due to additional investment or other reasons on the conversion date the sum of the
fair value of the original equity plus the cost of the new investment will be used as the initial investment
cost to be accounted for by the equity method. If the original equity is classified as a non-trading equity
instrument investment measured at fair value and its changes are included in other comprehensive
income the related cumulative fair value changes originally included in other comprehensive income will
be transferred to retained earnings when it is accounted for under the equity method. .If the joint control or significant influence on the invested unit is lost due to the disposal of part of the
equity investment or other reasons the remaining equity after the disposal shall be changed to the
"Accounting Standards for Business Enterprises No. 22 - Financial Instrument Recognition and Significant
Influence" on the date of loss of joint control or significant influence. Measurement" is used for accounting
treatment and the difference between the fair value and the book value is included in the current profit
and loss. Other comprehensive income recognized due to the use of the equity method for accounting in
the original equity investment will be accounted for on the same basis as the investee's direct disposal of
relevant assets or liabilities when the equity method is terminated; other changes in owner's equity related
to the original equity investment Transferred to current profit and loss.If the control over the invested unit is lost due to the disposal of part of the equity investment or other
reasons and the remaining equity after the disposal can jointly control or exert significant influence on
the invested unit it shall be accounted for according to the equity method and the remaining equity shall
be regarded as owned. Adjustments will be made using the equity method upon acquisition; if the
remaining equity after disposal cannot jointly control or exert significant influence on the invested unit the
relevant provisions of "Accounting Standards for Business Enterprises No. 22 - Recognition and
Measurement of Financial Instruments" will be followed. Accounting treatment the difference between its
fair value and book value on the date of loss of control is included in the current profit and loss.
124CSG Annual Report 2023
If the Group's shareholding ratio decreases due to capital increase by other investors thereby losing
control but it can exercise joint control or exert significant influence on the invested unit the Group's share
of the invested unit due to the capital increase shall be confirmed based on the new shareholding ratio.The difference between the share of net assets increased due to share expansion and the original book
value of the long-term equity investment corresponding to the decrease in shareholding ratio that should
be carried forward is included in the current profit and loss; then the new shareholding ratio is deemed
to have been calculated since the investment was obtained. That is adjustments are made using the
equity method of accounting.Unrealized gains and losses from internal transactions between the Group and its associates and joint
ventures are calculated based on the shareholding ratio and are attributable to the Group and investment
gains and losses are recognized on an offsetting basis. However if the unrealized internal transaction
losses between the Group and the investee are impairment losses on the transferred assets they will not
be offset.
（3）Basis for determining joint control and significant influence on the invested unit
Joint control refers to the shared control over an arrangement in accordance with relevant agreements
and the relevant activities of the arrangement must be decided only with the unanimous consent of the
participants sharing control rights. When judging whether there is joint control first judge whether the
arrangement is collectively controlled by all participants or a combination of participants and secondly
whether decisions on activities related to the arrangement must be unanimously agreed upon by the
participants who collectively control the arrangement. If all participants or a group of participants must act
in concert to determine the relevant activities of an arrangement all participants or a group of participants
are considered to collectively control the arrangement; if there are two or more combinations of
participants that can collectively Control of an arrangement does not constitute joint control. When
determining whether joint control exists the protective rights enjoyed are not taken into account.Significant influence means that the investor has the power to participate in decision-making on the
financial and operating policies of the investee but it is not able to control or jointly control the formulation
of these policies with other parties. When determining whether it can exert a significant influence on the
investee it is considered that the investor's direct or indirect holdings of voting shares in the investee and
the current executable potential voting rights held by the investor and other parties are assumed to be
converted into control over the investee. The impact arising from the acquisition of equity includes the
impact of current convertible warrants share options and convertible corporate bonds issued by the
investee.When the Group directly or indirectly through subsidiaries owns more than 20% (inclusive) but less than
50% of the voting shares of the invested unit it is generally considered to have a significant influence on
the invested unit unless there is clear evidence that this situation It is unable to participate in the
production and operation decisions of the invested unit and does not have a significant impact; when the
Group owns less than 20% (exclusive) of the voting shares of the invested unit it is generally not
considered to have a significant impact on the invested unit unless there is clear evidence that this Under
such circumstances we can participate in the production and operation decisions of the invested unit and
have a significant influence.
125CSG Annual Report 2023
（4）Impairment testing method and impairment provision accrual method
For investments in subsidiaries associates and joint ventures please refer to Note for the method of
calculating asset impairment.
14、Investment properties
Investment property is property held to earn rentals or for capital appreciation or both. The Group's
investment properties includes leased land use rights land use rights held and prepared to be transferred
after appreciation and leased buildings.There is an active real estate trading market in the location where the Group's investment real estate is
located and the Group is able to obtain market prices and other relevant information of similar or similar
real estate from the real estate trading market so that it can make a reasonable estimate of the fair value
of the investment real estate. Therefore the Group adopts the fair value model for subsequent
measurement of investment real estate and changes in fair value through profit and loss.When determining the fair value of investment properties refer to the current market price of the same or
similar real estate in the active market; if the current market price of the same or similar real estate cannot
be obtained refer to the latest transaction price of the same or similar real estate in the active market
and Consider the transaction situation transaction date location and other factors to make a reasonable
estimate of the fair value of the investment property; or determine its fair value based on the expected
future rental income and the present value of the relevant cash flows.In rare cases if there is evidence that the Group acquires an investment property that is not under
construction for the first time (or an existing property becomes an investment property for the first time
after completing construction or development activities or changing its use) the Group will If the fair value
of investment real estate cannot be obtained continuously and reliably the investment real estate will be
measured using the cost model until disposal and it is assumed that there is no residual value.The difference between the disposal income from the sale transfer scrapping or damage of investment
properties after deducting its book value and relevant taxes is included in the current profit and loss.
15、Fixed assets
（1）Fixed asset recognition conditions
The Group's fixed assets refer to tangible assets held for the production of goods provision of labor
services leasing or operation and management and with a useful life of more than one accounting year.A fixed asset can only be recognized when the economic benefits related to the fixed asset are likely to
flow into the enterprise and the cost of the fixed asset can be measured reliably.The Group's fixed assets are initially measured based on the actual cost when acquired.Subsequent expenditures related to fixed assets shall be included in the cost of fixed assets when the
economic benefits related to them are likely to flow into the Group and their costs can be reliably measured;
126CSG Annual Report 2023
daily repair costs of fixed assets that do not meet the conditions for subsequent expenditures for
capitalization of fixed assets shall be included in the cost of fixed assets when the economic benefits
related to them are likely to flow into the Group and their costs can be measured reliably. When incurred
it shall be included in the current profit and loss or included in the cost of related assets according to the
beneficiary object. For the replaced part its book value is derecognized.
（2）Depreciation methods for various types of fixed assets
Fixed assets are depreciated using the straight-line method based on their costs less estimated residual
values over their estimated useful lives Depreciation begins when a fixed asset reaches its intended
usable condition and depreciation stops when it is derecognized or classified as a non-current asset held
for sale. Without considering impairment provisions the Group determines the annual depreciation rates
of various types of fixed assets based on fixed asset category estimated service life and estimated
residual value as follows:
Category Useful lives (years) Residual rate% Annual depreciation rate %
Buildings 20-35 5 4.75-2.71
Mechinery equipment 8-20 5 11.88-4.75
Transportation and Others 5-8 0 20-12.50
Among them for fixed assets for which impairment provisions have been made the depreciation rate
should also be calculated and determined by deducting the accumulated amount of fixed asset
impairment provisions.
（3）Note for the impairment testing method and impairment provision accrual method for fixed assets.
（4）At the end of each year the Group reviews the useful life estimated net residual value and depreciation
method of fixed assets.If there is a difference between the estimated useful life and the original estimate the useful life of the
fixed assets will be adjusted; if there is a difference between the expected net residual value and the
original estimate the estimated net residual value will be adjusted.
（5）Fixed asset disposal
When a fixed asset is disposed of or no economic benefits are expected to be generated through use or
disposal the fixed asset is derecognised. The amount of disposal income from the sale transfer
scrapping or damage of fixed assets after deducting their book value and relevant taxes is included in the
current profit and loss.
16、Construction in progress
The cost of the Group's construction-in-progress is determined based on actual project expenditures
including various necessary project expenditures incurred during the construction period borrowing costs
that should be capitalized before the project reaches its intended usable state and other related expenses.
127CSG Annual Report 2023
Construction in progress is transferred to fixed assets when it reaches the intended usable state. The
criteria for judging the intended usable status should meet one of the following conditions: The physical
construction (including installation) of the fixed assets has been completed or substantially completed
trial production or trial operation has been carried out and the results show that the assets can operate
normally. Or it can produce stably or the trial operation results show that it can operate normally. The
amount of expenditure on the fixed assets constructed is very small or almost no longer occurs and the
fixed assets purchased have met the design or contract requirements or are basically consistent with the
design or contract requirements.Note for the method of accruing asset impairment for construction in progress.
17、Engineer material
The Group's engineering materials refer to various materials prepared for projects under construction
including engineering materials equipment that has not yet been installed and tools and equipment
prepared for production.The purchased engineering materials are measured at cost the engineering materials received are
transferred to the project under construction and the remaining engineering materials after the completion
of the project are transferred to inventory.Note for the asset impairment method of construction materials.In the balance sheet the closing balance of construction materials is listed in the "Construction in
Progress" item.
18、Borrowing costs
（1）Recognition principles for capitalization of borrowing costs
If the borrowing costs incurred by the Group are directly attributable to the acquisition construction or
production of assets that meet the capitalization conditions they shall be capitalized and included in the
cost of the relevant assets; other borrowing costs shall be recognized as expenses based on the amount
incurred when incurred and shall be included in the cost of the relevant assets for current profit and loss.Borrowing costs will begin to be capitalized if they meet the following conditions at the same time:
* Asset expenditures have occurred. Asset expenditures include expenditures in the form of cash
payments transfers of non-cash assets or interest-bearing debts for the acquisition construction or
production of assets that meet capitalization conditions;
* The borrowing costs have been incurred;
* The necessary purchase construction or production activities to bring the asset to its intended usable
or salable state have begun.
128CSG Annual Report 2023
（2）Borrowing cost capitalization period
When the assets purchased constructed or produced by the Group that meet the capitalization conditions
are ready for intended use or sale the capitalization of borrowing costs will cease. Borrowing costs
incurred after the assets that meet the capitalization conditions reach the intended usable or salable state
are recognized as expenses based on the amount incurred when incurred and included in the current
profit and loss.If an asset that meets the capitalization conditions is abnormally interrupted during the acquisition
construction or production process and the interruption lasts for more than 3 months the capitalization
of borrowing costs will be suspended; the borrowing costs during the normal interruption period will
continue to be capitalized.
（3）Calculation method of capitalization rate of borrowing costs and capitalization amount
The interest expenses actually incurred on special borrowings in the current period minus the interest
income from unused borrowed funds deposited in banks or investment income from temporary
investments are capitalized; general borrowings are capitalized based on the excess of the accumulated
asset expenditures over the special borrowings. The capitalization amount is determined by multiplying
the weighted average of asset expenditures by the capitalization rate of the general borrowings occupied.The capitalization rate is calculated and determined based on the weighted average interest rate of
general borrowings.During the capitalization period all exchange differences on special foreign currency borrowings are
capitalized; exchange differences on general foreign currency borrowings are included in the current
profits and losses.
19、Intangible assets
The Group's intangible assets include land use rights patent rights and proprietary technologies mineral
mining rights and others.Intangible assets are initially measured based on cost and their service life is analyzed and judged when
the intangible assets are acquired. If the service life is limited from the time when the intangible asset
becomes available for use an amortization method that can reflect the expected realization method of
the economic benefits related to the asset shall be used and amortization will be amortized within the
estimated useful life; if the expected realization method cannot be reliably determined Amortization is
carried out using the straight-line method; intangible assets with indefinite service life are not amortized.The amortization method of intangible assets with limited useful life is as follows:
Category Useful lives (years) Basis for determining service life Amortization method Notes
Land use rights 30-70 years Warrant Straight-line Depreciation
Patent rights and
proprietary 5-20 years Estimated useful life Straight-line Depreciation
technologies
Exploitation 16-20 years Warrants expected income period Straight-line Depreciation
129CSG Annual Report 2023
rights
Others 2-10 years Estimated useful life Straight-line Depreciation
At the end of each year the Group reviews the useful life and amortization method of intangible assets
with limited service life. If it is different from the previous estimate the original estimate is adjusted and
treated as a change in accounting estimate.If it is expected that an intangible asset will no longer bring future economic benefits to the enterprise on
the balance sheet date the entire book value of the intangible asset will be transferred to the current profit
and loss.Note for the method of impairment for intangible assets.
20、R & D expenditure
The Group's R&D expenditures are expenditures directly related to the company's R&D activities
including R&D staff salaries direct investment costs depreciation expenses and long-term deferred
expenses design expenses equipment commissioning expenses intangible asset amortization
expenses entrusted external research and development expenses Other expenses etc. The wages of
R&D personnel are included in R&D expenditures based on project working hours. Equipment production
lines and sites shared between R&D activities and other production and operation activities are included
in R&D expenses according to the proportion of working hours and the proportion of area.The Group divides expenditures on internal research and development projects into expenditures in the
research phase and expenditures in the development phase.Expenditures in the research stage are included in the current profits and losses when incurred.Expenditures in the development stage can only be capitalized if they meet the following conditions: it is
technically feasible to complete the intangible asset so that it can be used or sold; there is the intention
to complete the intangible asset and use or sell it; the intangible asset The way to generate economic
benefits includes being able to prove that there is a market for the products produced using the intangible
assets or that the intangible assets themselves have a market. If the intangible assets will be used
internally they can prove their usefulness; there are sufficient technical financial and other resource
supports. in order to complete the development of the intangible asset and have the ability to use or sell
the intangible asset; the expenditures attributable to the development stage of the intangible asset can
be measured reliably. Development expenditures that do not meet the above conditions are included in
the current profit and loss.The Group's research and development projects will enter the development stage after meeting the above
conditions and passing technical feasibility and economic feasibility studies to form a project.Capitalized expenditures in the development phase are listed as development expenditures on the
balance sheet and are converted into intangible assets from the date the project reaches its intended use.Capitalization conditions for specific R&D projects:
Expenditures in the research stage are included in the current profits and losses when incurred. Before
large-scale production expenditures related to the design and testing phase of the final application of the
130CSG Annual Report 2023
production process are expenditures in the development phase. If the following conditions are met at the
same time they will be capitalized:
·The development of the production process has been fully demonstrated by the technical team;
· Management has approved the budget for production process development;
·The research and analysis of the preliminary market research shows that the products produced by the
production process have market promotion capabilities;
·Have sufficient technical and financial support to carry out production process development activities and
subsequent large-scale production; and the expenditure on production process development can be
reliably collected. If it is impossible to distinguish between expenditures in the research stage and
expenditures in the development stage all R&D expenditures incurred will be included in the current profit
and loss.
21、Asset impairment
For subsidiaries’ long-term investments fixed assets construction in process right-of-use assets
intangible assets goodwill etc. (excluding inventories investment properties measured according to the
fair value model deferred tax assets and financial assets) value determined as follows:
On the balance sheet date it is judged whether there are any signs of possible impairment of the assets.If there are signs of impairment the Group will estimate its recoverable amount and conduct an
impairment test. Goodwill formed due to business combinations intangible assets with indefinite useful
lives and intangible assets that have not yet reached a usable state are subject to impairment testing
every year regardless of whether there are signs of impairment.The recoverable amount is determined based on the higher of the asset's fair value less disposal costs
and the present value of the asset's expected future cash flows. The Group estimates the recoverable
amount on the basis of a single asset; if it is difficult to estimate the recoverable amount of an individual
asset the Group determines the recoverable amount of the asset group based on the asset group to
which the asset belongs. The identification of an asset group is based on whether the main cash inflow
generated by the asset group is independent of the cash inflows of other assets or asset groups.When the recoverable amount of an asset or asset group is lower than its book value the Group will write
down its book value to the recoverable amount and the amount of the write-down will be included in the
current profit and loss and the corresponding asset impairment provision will be made.As far as the impairment test of goodwill is concerned the book value of goodwill formed due to a business
combination shall be apportioned to the relevant asset group in a reasonable manner from the date of
purchase; if it is difficult to apportion it to the relevant asset group it shall be apportioned to the relevant
asset group. Related asset group combinations. The relevant asset group or asset group combination is
an asset group or asset group combination that can benefit from the synergy effects of the business
combination and is no larger than the reporting segment determined by the group.During impairment testing if there are signs of impairment in an asset group or combination of asset
groups related to goodwill first conduct an impairment test on the asset group or combination of asset
groups that does not include goodwill calculate the recoverable amount and confirm the corresponding
131CSG Annual Report 2023
impairment. Then conduct an impairment test on the asset group or asset group combination containing
goodwill and compare its book value with the recoverable amount. If the recoverable amount is lower
than the book value the impairment loss of goodwill is recognized.Once the asset impairment loss is recognized it will not be reversed in subsequent accounting periods.
22、Long-term prepaid expenses
The long-term deferred expenses incurred by the Group are measured at actual cost and amortized
evenly over the expected beneficial period. For long-term deferred expense items that cannot benefit
future accounting periods their amortized value shall be fully included in the current profit and loss.
23、Employee compensation
（1）Range of employee compensation
Employee compensation refers to various forms of remuneration or compensation given by enterprises
to obtain services provided by employees or to terminate labor relations. Employee compensation
includes short-term compensation post-employment benefits termination benefits and other long-term
employee benefits. Benefits provided by an enterprise to employees’ spouses children dependents
survivors of deceased employees and other beneficiaries are also employee benefits.
（2）Short-term compensation
During the accounting period when employees provide services the Group recognizes the actual
employee wages bonuses social insurance premiums such as medical insurance premiums work-
related injury insurance premiums maternity insurance premiums and housing provident funds paid for
employees based on prescribed standards and proportions as a liabilities and included in the current profit
and loss or related asset costs.
（3）Post-employment benefits
Post-employment benefit plans include defined contribution plans and defined benefit plans. Among them
a defined contribution plan refers to a post-employment benefit plan in which the enterprise no longer
bears further payment obligations after depositing a fixed fee into an independent fund; a defined benefit
plan refers to a post-employment benefit plan other than a defined contribution plan.Defined contribution plans
Defined contribution plans include basic pension insurance unemployment insurance etc.During the accounting period when employees provide services the deposit amount payable calculated
according to the defined contribution plan is recognized as a liability and included in the current profit and
loss or related asset costs.
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（4）Termination benefits
If the Group provides dismissal benefits to employees the employee compensation liabilities arising from
the dismissal benefits will be recognized at the earliest of the following two times and included in the
current profit and loss: When the Group cannot unilaterally withdraw the dismissal benefits provided due
to the termination of labor relations plan or layoff proposal; When the Group recognizes costs or expenses
related to restructuring involving payment of termination benefits.
（5）Other long-term benefits
Other long-term employee benefits provided by the Group to employees that meet the conditions of a
defined contribution plan will be handled in accordance with the above-mentioned relevant regulations on
defined contribution plans. If it is in compliance with the defined benefit plan it shall be handled in
accordance with the relevant provisions on the defined benefit plan mentioned above but the "changes
caused by the remeasurement of the net liabilities or net assets of the defined benefit plan" in the relevant
employee compensation costs shall be included in the current profit and loss or related Asset cost.
24、Provisions
If the obligations related to contingencies meet the following conditions at the same time the Group will
recognize them as estimated liabilities:
(1) The obligation is a current obligation borne by the Group;
(2) The performance of this obligation is likely to result in the outflow of economic benefits from the Group;
(3) The amount of the obligation can be measured reliably.
Estimated liabilities are initially measured based on the best estimate of the expenditure required to fulfill
the relevant current obligations and factors such as risks uncertainties and time value of money related
to contingencies are comprehensively considered. If the time value of money has a significant impact the
best estimate is determined by discounting the relevant future cash outflows. The Group reviews the book
value of estimated liabilities on the balance sheet date and adjusts the book value to reflect the current
best estimate.If all or part of the expenses required to settle the recognized estimated liabilities are expected to be
compensated by a third party or other parties the compensation amount can only be recognized
separately as an asset when it is basically certain that it will be received. The amount of compensation
recognized shall not exceed the book value of the liability recognized.
25、Revenue
（1）General principles
The Group recognizes revenue when it fulfills its performance obligations in the contract that is when
the customer obtains control of the relevant goods or services.
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If the contract contains two or more performance obligations the Group will allocate the transaction price
to each individual performance obligation based on the relative proportion of the stand-alone selling price
of the goods or services promised by each individual performance obligation on the contract
commencement date. Revenue is measured at the transaction price of each individual performance
obligation.When one of the following conditions is met the performance obligation is performed within a certain
period of time; otherwise the performance obligation is performed at a certain point in time:
* When the Group performs the contract the customer obtains and consumes the economic benefits
brought by the Group's performance.* Customers can control the goods under construction during the performance of the contract by the
Group.* The goods produced by the Group during the performance of the contract have irreplaceable uses
and the Group has the right to collect payment for the cumulative performance part completed so far
during the entire contract period.For performance obligations fulfilled within a certain period of time the Group recognizes revenue based
on the performance progress within that period of time. When the progress of contract performance cannot
be reasonably determined if the costs incurred by the Group are expected to be compensated revenue
will be recognized based on the amount of costs incurred until the progress of contract performance can
be reasonably determined.For performance obligations fulfilled at a certain point in time the Group recognizes revenue at the point
when the customer obtains control of the relevant goods or services. When determining whether a
customer has obtained control of goods or services the Group will consider the following signs:
* The Group has the current right to receive payment for the goods or services that is the customer has
current payment obligations for the goods.* The Group has transferred the legal ownership of the goods to the customer which means that the
customer already owns the legal ownership of the goods.* The Group has physically transferred the goods to the customer that is the customer has physically
taken possession of the goods.* The Group has transferred the main risks and rewards of ownership of the commodity to the customer
that is the customer has obtained the main risks and rewards of ownership of the commodity.* The customer has accepted the goods or services.* Other signs indicating that the customer has obtained control of the product.
（2）Specific method
The Group's revenue mainly comes from the following business types: sales of products external
provision of consulting and processing services.
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Products sold The Group produces and sells float glass photovoltaic glass engineering glass solar
industry related products electronic glass and display device etc.For domestic sales the Group transports the products to the agreed delivery location in accordance with
the agreement or picks it up by the buyer. Revenue is recognized after the buyer confirms receipt or pick-
up.For export sales according to the trade terms stipulated in the sales contract the Group recognizes
revenue after the export products go through export customs declaration procedures and are shipped in
accordance with the contract or after they are shipped to the designated delivery location.For solar energy and other industries' photovoltaic power generation revenue the Group recognizes the
electricity when it is supplied to the provincial power grid company where each electric field is located
uses the settled electricity volume confirmed by both parties as the electricity sales for that month and
uses the on-grid electricity price approved by the National Development and Reform Commission or the
electricity price agreed in the contract as the sales unit price.The credit periods granted by the Group to customers in various industries are consistent with the
practices of various industries and there is no significant financing component.The Group provides product quality assurance for the products sold and recognizes corresponding
estimated liabilities. The Group does not provide any additional services or additional quality assurance
so the product quality assurance does not constitute a separate performance obligation.Glass products with sales return clauses revenue recognition is limited to the amount of accumulated
recognized revenue that is unlikely to result in a significant reversal. The Group recognizes liabilities
based on the expected return amount and at the same time recognizes the balance as an asset based
on the book value of the goods expected to be returned when the goods are transferred minus the
expected costs of recovering the goods (including the impairment of the value of the returned goods).Provide consulting and processing services
The Group provides external consulting and processing services because customers obtain and consume
the economic benefits brought by the company's performance of the contract while the company performs
the contract. The Group recognizes revenue based on the progress of contract performance. The
progress of contract performance is determined based on the proportion of costs incurred to the estimated
total costs. On the balance sheet date the Group re-estimates the performance progress of completed
services to reflect changes in performance.When the Group recognizes revenue based on the progress of completed services the portion for which
the Group has obtained the unconditional right to receive payment is recognized as accounts receivable
and the remaining portion is recognized as contract assets. Accounts receivable and contract assets are
recognized as expected credit losses. Loss provisions are recognized as the basis; if the contract price
received or receivable by the Group exceeds the labor services completed the excess will be recognized
as contract liabilities. The Group's contract assets and contract liabilities under the same contract are
presented on a net basis.
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26、Contract costs
Contract costs include incremental costs incurred to obtain the contract and contract performance costs.The incremental costs incurred to obtain the contract refer to costs that the company would not have
incurred if it had not obtained the contract (such as sales commissions etc.). If the cost is expected to be
recovered the company will recognize it as the contract acquisition cost and as an asset. Other expenses
incurred by the Company to obtain the contract except for the incremental costs expected to be recovered
are included in the current profits and losses when incurred.If the cost incurred to fulfill the contract does not fall within the scope of other accounting standards for
enterprises such as inventory and meets the following conditions the company will recognize it as an
asset as the contract performance cost:
* The cost is directly related to a current or expected contract including direct labor direct materials
manufacturing overhead (or similar expenses) costs clearly borne by the customer and other costs
incurred solely because of the contract;
* This cost increases the company’s resources for fulfilling its performance obligations in the future;
* The cost is expected to be recovered.Assets recognized for contract acquisition costs and assets recognized for contract performance costs
(hereinafter referred to as "assets related to contract costs" ) are amortized on the same basis as the
recognition of revenue from goods or services related to the assets and included in the current profit and
loss.When the book value of assets related to contract costs is higher than the difference between the following
two items the company makes impairment provisions for the excess and recognizes it as asset
impairment losses:
* The remaining consideration that the company expects to obtain from the transfer of goods or services
related to the asset;
* The estimated cost that will be incurred to transfer the relevant goods or services.
27、Government subsidies
Government subsidies are recognized when the conditions attached to the government subsidies are met
and can be received.Government subsidies for monetary assets are measured based on the amount received or receivable.Government subsidies for non-monetary assets are measured at fair value; if the fair value cannot be
obtained reliably they are measured at a nominal amount of 1 yuan.Government subsidies related to assets refer to government subsidies obtained by the Group for the
purchase construction or other formation of long-term assets; in addition government subsidies related
to income are regarded as government subsidies.
136CSG Annual Report 2023
For government documents that do not clearly stipulate the subsidy objects and can form long-term assets
the part of the government subsidy corresponding to the asset value shall be regarded as the government
subsidy related to the asset and the remaining part shall be regarded as the government subsidy related
to income; if it is difficult to distinguish the government subsidy shall be regarded as the government
subsidy related to the asset. The whole is regarded as a government subsidy related to income.Government subsidies related to assets are recognized as deferred income and are included in profits
and losses in installments according to a reasonable and systematic method during the use period of the
relevant assets. If government subsidies related to income are used to compensate for relevant costs or
losses that have already occurred they will be included in the current profits and losses; if they are used
to compensate for relevant costs or losses in subsequent periods they will be included in deferred income
and will be included in the relevant costs or losses. The loss is included in the current profit and loss
during the period during which the loss is recognized. Government subsidies measured according to the
nominal amount are directly included in the current profit and loss. The Group adopts a consistent
approach to the same or similar government subsidy business.Government subsidies related to daily activities shall be included in other income according to the
economic business essence. Government subsidies unrelated to daily activities are included in non-
operating income.When a confirmed government subsidy needs to be returned if the book value of the relevant assets is
offset at the time of initial recognition the book value of the assets is adjusted; if there is a balance of
relevant deferred income the Carrying Amount of the relevant deferred income is offset and the excess
is included in the current profit and loss; it is In other cases it will be directly included in the current profit
and loss.
28、Deferred tax assets and deferred tax liabilities
Income tax includes current income tax and deferred income tax. Except for adjustments to goodwill
arising from business combinations or deferred income taxes related to transactions or events directly
included in owners' equity which are included in owners' equity they are all included in current profits and
losses as income tax expenses.The Group adopts the balance sheet liability method to recognize deferred income tax based on the
temporary differences between the book values of assets and liabilities on the balance sheet date and
their tax basis.Each taxable temporary difference is recognized as a related deferred income tax liability unless the
taxable temporary difference is generated in the following transactions:
(1) Initial recognition of goodwill or the initial recognition of assets or liabilities arising from a transaction
with the following characteristics: the transaction is not a business combination and the transaction
affects neither accounting profits nor taxable income when the transaction occurs ( initial recognition
(Except for individual transactions that result in equal amounts of taxable temporary differences and
deductible temporary differences arising from the assets and liabilities) ;
(2) For taxable temporary differences related to investments in subsidiaries joint ventures and associates
the time of reversal of the temporary differences can be controlled and the temporary differences are likely
not to be reversed in the foreseeable future.
137CSG Annual Report 2023
For deductible temporary differences deductible losses and tax credits that can be carried forward to
future years the Group shall use it to offset the deductible temporary differences deductible losses and
tax credits to the extent that it is probable that it will be available. The deferred income tax assets
generated will be recognized to the limit of the future taxable income unless the deductible temporary
difference is generated in the following transactions:
(1) The transaction is not a business combination and when the transaction occurs it affects neither
accounting profits nor taxable income (a single transaction in which the initial recognition of assets and
liabilities results in an equal amount of taxable temporary differences and deductible temporary
differences are excepted);
(2) For deductible temporary differences related to investments in subsidiaries joint ventures and
associates and if the following conditions are met at the same time the corresponding deferred income
tax assets are recognized: the temporary differences are likely to be reversed in the foreseeable future
And it is likely to obtain taxable income in the future that can be used to offset deductible temporary
differences.On the balance sheet date the Group's deferred income tax assets and deferred income tax liabilities are
measured at the applicable tax rate during the period when the asset is expected to be recovered or the
liability is settled and the income tax impact of the expected method of recovering the asset or settling
the liability on the balance sheet date is reflected.On the balance sheet date the Group reviews the book value of deferred income tax assets. If it is
probable that sufficient taxable income will not be available in future periods to offset the benefits of
deferred tax assets the carrying amount of the deferred tax assets will be reduced. The amount of the
write-down is reversed when it is probable that sufficient taxable income will be obtained.On the balance sheet date deferred income tax assets and deferred income tax liabilities are presented
as the net amount after offsetting when the following conditions are met at the same time:
( 1 ) The tax payer within the group has the legal right to settle current income tax assets and current
income tax liabilities on a net basis;
( 2 ) Deferred income tax assets and deferred income tax liabilities are related to income taxes levied by
the same tax collection and administration department on the same taxpayer within the group.
29、Leases
（1）Identification of leases
On the contract inception date the Group as a lessee or lessor evaluates whether the customer in the
contract has the right to obtain substantially all the economic benefits generated from the use of the
identified assets during the use period and has the right to direct the use of the identified assets during
the use period. If a party in a contract transfers the right to control the use of one or more identified assets
within a certain period in exchange for consideration the Group determines that the contract is a lease or
contains a lease.
138CSG Annual Report 2023
（2）The Group acts as lessee
On the commencement date of the lease period the Group recognizes right-of-use assets and lease
liabilities for all leases except for simplified short-term leases and low-value asset leases.The accounting policies for right-of-use assets are shown in Note.Lease liabilities are initially measured based on the present value of the unpaid lease payments at the
beginning of the lease term using the interest rate implicit in the lease. If the interest rate implicit in the
lease cannot be determined the incremental borrowing rate is used as the discount rate. Lease payments
include: fixed payments and substantive fixed payments if there are lease incentives the amount related
to lease incentives is deducted; variable lease payments that depend on the index or ratio; the exercise
price of the purchase option provided that the lessee is reasonable It is certain that the option will be
exercised; the amount required to be paid to exercise the option to terminate the lease provided that the
lease term reflects that the lessee will exercise the option to terminate the lease; and the amount expected
to be paid based on the residual value of the guarantee provided by the lessee. Subsequently the interest
expense of the lease liability for each period during the lease term is calculated based on the fixed periodic
interest rate and included in the current profit and loss. Variable lease payments that are not included in
the measurement of lease liabilities are included in the current profit and loss when actually incurred.Short term lease
A short-term lease refers to a lease with a lease term of no more than 12 months on the start date of the
lease period except for leases that include a purchase option.The Group will include the lease payments of short-term leases into the relevant asset costs or current
profits and losses on a straight-line basis during each period of the lease term.Low value asset leasing
Low-value asset leases refer to leases where the value of a single leased asset is less than 100000 yuan
when it is a brand-new asset.The Group will include the lease payments for low-value asset leases into the relevant asset costs or
current profits and losses on a straight-line basis during each period of the lease term.For low-value asset leases the Group chooses to adopt the above simplified treatment method based on
the specific circumstances of each lease.Lease changes
If a lease changes and the following conditions are met at the same time the Group will account for the
lease change as a separate lease: * The lease change expands the scope of the lease by adding the
right to use one or more leased assets; * Increased The consideration is equivalent to the individual
price of the extended portion of the lease adjusted for the circumstances of the contract.If the lease change is not accounted for as a separate lease on the effective date of the lease change
the Group re-allocates the consideration of the contract after the change re-determines the lease term
139CSG Annual Report 2023
and calculates it based on the changed lease payment and the revised discount rate. Present value
remeasurement of the lease liability.If a change in the lease results in a reduction in the scope of the lease or a shortening of the lease period
the Group will accordingly reduce the book value of the right-of-use assets and include the gains or
losses related to the partial or complete termination of the lease into the current profits and losses.If other lease changes result in the remeasurement of lease liabilities the Group will adjust the book value
of the right-of-use assets accordingly.
（3）The Group acts as lessor
When the Group acts as a lessor leases that substantially transfer all risks and rewards related to asset
ownership are recognized as finance leases and leases other than finance leases are recognized as
operating leases.Financial lease
In financial leases the Group's net lease investment on the date of the lease term is recorded as the
accounting value of finance lease receivables. The net lease investment is the unguaranteed residual
value and the lease receivables that have not been received on the date of the lease term are calculated
based on the amount included in the lease. The sum of present values discounted with interest rates. As
the lessor the Group calculates and recognizes interest income for each period during the lease term
based on fixed periodic interest rates. Variable lease payments obtained by the Group as a lessor that
are not included in the measurement of the net lease investment are included in the current profit and
loss when actually incurred.The derecognition and impairment of finance lease receivables shall be accounted for in accordance with
the provisions of "Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement
of Financial Instruments" and "Accounting Standards for Business Enterprises No. 23 - Transfer of
Financial Assets".Operating lease
For rents in operating leases the Group recognizes current profits and losses according to the straight-
line method in each period during the lease term. The initial direct expenses incurred in connection with
the operating lease shall be capitalized amortized during the lease period on the same basis as the rental
income recognition and included in the current profit and loss in installments. Variable lease payments
related to operating leases that are not included in the lease receipts are included in the current profit and
loss when they actually occur.Lease changes
If an operating lease changes the Group will account for it as a new lease from the effective date of the
change and the amount of lease receipts received in advance or receivable related to the lease before
the change is regarded as the amount of receipts from the new lease.If a financial lease changes and the following conditions are met at the same time the Group will account
for the change as a separate lease: * The change expands the scope of the lease by adding the right
140CSG Annual Report 2023
to use one or more leased assets; * The increased consideration The amount is equivalent to the
individual price of the extended portion of the lease adjusted for the circumstances of the contract.If a financial lease is changed and is not accounted for as a separate lease the Group will treat the
changed lease under the following circumstances: * If the change takes effect on the lease
commencement date the lease will be classified as an operating lease and the Group will From the
effective date of the lease change it will be accounted for as a new lease and the net lease investment
before the effective date of the lease change will be used as the book value of the leased asset; * If the
change takes effect on the lease commencement date the lease will be classified as financing For leases
the Group shall conduct accounting treatment in accordance with the provisions of "Accounting Standards
for Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments" regarding
modification or renegotiation of contracts.
30、Right-of-use assets
（1）Right-of-use asset recognition conditions
Right-of-use assets refer to the Group's rights as a lessee to use the leased assets during the lease term.On the commencement date of the lease term the right-of-use asset is initially measured at cost. This
cost includes: the initial measurement amount of the lease liability; the lease payment amount paid on or
before the start date of the lease term if there is a lease incentive deduct the amount related to the lease
incentive that has been enjoyed; the initial direct costs incurred by the Group as a lessee; The Group as
the lessee expects to incur costs for dismantling and removing the leased assets restoring the site where
the leased assets are located or restoring the leased assets to the state agreed upon in the lease terms.As a lessee the Group recognizes and measures costs such as demolition and restoration in accordance
with Accounting Standards for Business Enterprises No. 13 - Contingencies. Adjustments are made
subsequently for any subsequent remeasurement of the lease liability.
（2）Depreciation method for right-of-use assets
The Group uses the straight-line method to calculate depreciation. If the Group as the lessee can
reasonably determine that it will obtain ownership of the leased asset when the lease term expires
depreciation will be accrued over the remaining useful life of the leased asset. If it is not reasonably certain
that the ownership of the leased asset will be obtained at the expiration of the lease term depreciation
will be accrued during the shorter of the lease term and the remaining useful life of the leased asset.
（3）Note for the impairment testing method and impairment provision accrual method for right-of-use assets.
31、Safety production costs
According to relevant documents from the Ministry of Finance and the State Administration of Work Safety
the Group's subsidiaries engaged in the production and sales of polysilicon are based on the actual
operating income of the previous year and use an excess regressive method to withdraw production safety
expenses monthly:
141CSG Annual Report 2023
(a) If the operating income is 10 million yuan or less 4.5% shall be withdrawn;
(b) The portion of operating income between RMB 10 million and RMB 100 million (inclusive) shall be
withdrawn at 2.25%;
(c) The portion of operating income between RMB 100 million and RMB 1 billion (inclusive) shall be
withdrawn at 0.55 % ;
(d) For the portion of operating income above RMB 1 billion 0.2 % will be withdrawn.Safety production expenses are mainly used to improve transform and maintain safety protection
equipment and facilities. Safety production expenses are included in the cost of related products or current
profits and losses when withdrawn and are also recorded in special reserve accounts. When in use
expenditures within the prescribed scope of use will be directly offset against the special reserve when
the expenditures are incurred; for capital expenditures expenditures incurred through the accounts of
projects under construction will be used until the project is completed and reaches the scheduled
availability. When in use they are transferred to fixed assets and the special reserves are offset according
to the cost of forming the fixed assets and the corresponding amount of accumulated depreciation is
recognized at the same time. This fixed asset will no longer be depreciated in future periods.
32、Significant accounting judgments and estimates
The Group continuously evaluates the important accounting estimates and key assumptions adopted
based on historical experience and other factors including reasonable expectations for future events. The
important accounting estimates and key assumptions that are likely to cause a significant adjustment in
the book value of assets and liabilities in the next fiscal year are as follows:
Classification of financial assets
The Group's significant judgments involved in determining the classification of financial assets include
analysis of business models and contractual cash flow characteristics.The Group determines the business model for managing financial assets at the level of financial asset
portfolios. Factors considered include the way to evaluate and report the performance of financial assets
to key management personnel the risks that affect the performance of financial assets and their
management methods and relevant business managers. How to get paid etc.When the Group evaluates whether the contractual cash flows of financial assets are consistent with the
basic lending arrangements it makes the following main judgments: whether the time distribution or
amount of the principal may change during the duration due to early repayment; whether the interest is
only Includes time value of money credit risk other fundamental lending risks and consideration against
costs and profits. For example whether the amount of early repayment only reflects the unpaid principal
and interest based on the unpaid principal as well as reasonable compensation paid for early termination
of the contract.Measurement of expected credit losses on accounts receivable
The Group calculates the expected credit losses of accounts receivable through the default risk exposure
of accounts receivable and the expected credit loss rate and determines the expected credit loss rate
142CSG Annual Report 2023
based on the probability of default and the loss given default rate. When determining the expected credit
loss rate the Group uses internal historical credit loss experience and other data and adjusts historical
data based on current conditions and forward-looking information. When considering forward-looking
information the Group uses indicators including the risk of economic downturn changes in the external
market environment technical environment and customer conditions. The Group regularly monitors and
reviews assumptions related to the calculation of expected credit losses.Impairment of Fixed Assets and Construction in Progress
As of the balance sheet date the Company assesses whether there are any indications of impairment for
non-current assets other than financial assets. When there are indications that the carrying amount of an
asset cannot be recovered impairment testing is conducted.Impairment occurs when the carrying amount of an asset or asset group exceeds its recoverable amount
which is the higher of the net amount after deducting disposal costs from fair value and the present value
of estimated future cash flows. The net amount after deducting disposal costs from fair value is determined
by referencing the sales agreement prices of similar assets in fair transactions or observable market prices
minus incremental costs directly attributable to the asset's disposal. Significant judgments are made
regarding the expected future cash flow present value including the asset's (or asset group's) output
selling price relevant operating costs and the discount rate used in the present value calculation. The
Company utilizes all relevant information available to estimate the recoverable amount including
forecasts of output selling prices and related operating costs based on reasonable and supportable
assumptions.Goodwill impairment
The Group assesses whether goodwill is impaired at least annually. This requires an estimate of the value
in use of the asset group to which goodwill is assigned. When estimating value in use the Group needs
to estimate future cash flows from the asset group and select an appropriate discount rate to calculate
the present value of future cash flows.R&D expenditure
When determining the amount to be capitalized management must make assumptions regarding the
expected future cash generation of the asset the discount rate that should be applied and the expected
period of benefit.Deferred tax assets
Deferred tax assets should be recognized for all unused tax losses to the extent that it is probable that
sufficient taxable profits will be available against which the losses can be utilised. This requires
management to use a lot of judgment to estimate the timing and amount of future taxable profits combined
with tax planning strategies to determine the amount of deferred income tax assets that should be
recognized.
143CSG Annual Report 2023
33、Changes in important accounting policies and accounting estimates
（1）Important changes in accounting policies
Accounting Standards for Business Enterprises Interpretation No. 16
The Ministry of Finance issued the "Interpretation No. 16 of Accounting Standards for Business
Enterprises" (Financial Accounting [2022] No. 31) in November 2022 (hereinafter referred to as
"Interpretation No. 16").Interpretation No. 16 stipulates that for a company that is not a business combination the transaction
affects neither accounting profits nor taxable income (or deductible losses) when the transaction occurs
and the initial recognition of assets and liabilities results in equal amounts of taxable temporary differences
and For a single transaction with deductible temporary differences taxable temporary differences and
deductible temporary differences arising from the initial recognition of assets and liabilities shall be
determined in accordance with relevant provisions such as "Accounting Standards for Business
Enterprises No. 18 - Income Tax". The corresponding deferred income tax liabilities and deferred income
tax assets are recognized respectively when the transaction occurs. For the above-mentioned
transactions that occurred between the beginning of the earliest period for the presentation of financial
statements when the above provisions are first implemented and the implementation date of this
interpretation the enterprise shall in accordance with the above provisions adjust the cumulative impact
number to the opening retained earnings and other expenses for the earliest period for presentation of
the financial statements in accordance with the above provisions. Relevant financial statement items. The
above accounting treatment regulations will be effective from 1 January 2023.The Group's implementation of the above accounting policy changes will have no significant impact on
the financial statements of 31 December 2022 31 December 2023 and 2023 .IV. Taxation
1、Main tax types and tax rates
Category Taxable basis Tax rate
Taxable value-added amount (Tax
payable is calculated using the taxable
Value-added tax (“VAT”) sales amount multiplied by the applicable 3%-13%
tax rate less deductible VAT input of the
current period)
Education surtax VAT paid 5%
Urban maintenance and construction
VAT paid 1%-7%
tax
Income tax Taxable income 16.5% 25%
144CSG Annual Report 2023
2、Tax incentives and approvals
Tianjin CSG Energy-Saving Glass Co. Ltd. (“Tianjin Energy Conservation”) passed the high-tech
enterprise qualification review in 2021 and has obtained the "High-tech Enterprise Certificate" which is
valid for three years. 15% tax rate will be applicable within three years starting from 2021.Dongguan CSG Architectural Glass Co. Ltd. (“Dongguan CSG”) passed the high-tech enterprise
qualification reexamination in 2022 and has obtained the "High-tech Enterprise Certificate" which is valid
for three years and 15% tax rate is applicable within three years starting from 2022.Wujiang CSG East China Architectural Glass Co. Ltd. (“Wujiang CSG Engineering”) passed the high-
tech enterprise qualification review in 2023 and has obtained the "High-tech Enterprise Certificate" which
is valid for three years starting from 2023.It applies to 15% tax rate for three years since 2023.Dongguan CSG Solar Glass Co. Ltd. (“Dongguan CSG Solar”) passed the high-tech enterprise
qualification review in 2023 and has obtained the "High-tech Enterprise Certificate" which is valid for
three years and 15% Income tax rate is adopted within three years starting from 2023.Yichang CSG Polysilicon Co. Ltd. (“Yichang CSG Polysilicon”) passed the high-tech enterprise
qualification review in 2023 and has obtained the "High-tech Enterprise Certificate" which is valid for
three years and 15% Income tax rate is adopted within three years starting from 2023.Dongguan CSG PV-tech Co. Ltd. (“Dongguan CSG PV-tech”) passed the high-tech enterprise
qualification review in 2022 and has obtained the "High-tech Enterprise Certificate" which is valid for
three years and 15% Income tax rate is adopted within three years starting from 2022.Hebei Shichuang Glass Co. Ltd. (“Hebei Shichuang”) passed the high-tech enterprise qualification review
in 2022 and has obtained the "High-tech Enterprise Certificate" which is valid for three years and 15%
Income tax rate is adopted within three years starting from 2022. .Wujiang CSG Glass Co. Ltd. (“Wujiang CSG”) passed the high-tech enterprise qualification review in
2023 and has obtained the "High-tech Enterprise Certificate" which is valid for three years and 15%
Income tax rate is adopted within three years starting from 2023.Xianning CSG Glass Co Ltd. (“Xianning CSG”) passed the high-tech enterprise qualification review in
2023 and has obtained the "High-tech Enterprise Certificate" which is valid for three years and 15%
Income tax rate is adopted within three years starting from 2023.Xianning CSG Energy-Saving Glass Co. Ltd. (“Xianning CSG Energy-Saving”) passed the high-tech
enterprise qualification review in 2021 and has obtained the "High-tech Enterprise Certificate" which is
valid for three years. 15% Income tax rate is adopted within three years starting from 2021.Yichang CSG Photoelectric Glass Co. Ltd. (“Yichang CSG Photoelectric”) passed the high-tech
enterprise qualification review in 2021 and has obtained the "High-tech Enterprise Certificate" which is
valid for three years. 15% income tax rate will be applicable within three years starting from 2021.Yichang CSG Display Co. Ltd (“Yichang CSG Display”) passed the high-tech enterprise qualification
review in 2021 and has obtained the "High-tech Enterprise Certificate" which is valid for three years. 15%
income tax rate will be applicable within three years starting from 2021.
145CSG Annual Report 2023
Qingyuan CSG New Energy-Saving Materials Co. Ltd. (“Qingyuan CSG Energy-Saving”) passed the
high-tech enterprise qualification review in 2022 and has obtained the "High-tech Enterprise Certificate"
which is valid for three years.15% income tax rate will be applied for three years starting form 2022.Hebei CSG Glass Co Ltd. (“Hebei CSG”) passed the high-tech enterprise qualification review in 2021 and
has obtained the "High-tech Enterprise Certificate" which is valid for three years. 15% corporate income
tax rate will be applicable within three years starting from 2021.Shenzhen CSG Applied Technology Co Ltd. (“Shenzhen Technology”) passed the high-tech enterprise
qualification review in 2021 and has obtained the "High-tech Enterprise Certificate" which is valid for
three years. 15% corporate income tax rate will be applicable within three years starting from 2021.Xianning CSG Photoelectric Glass Co. Ltd. (“Xianning Photoelectric”) passed the high-tech enterprise
qualification reexamination in 2022 and has obtained the "High-tech Enterprise Certificate" which is valid
for three years and applies 15% Income tax rate of enterprises within three years starting from 2022.Dongguan CSG Crystal Yuxin Materials Co. Ltd. ("Dongguan Jing Yu Company") was recognized as a
high-tech enterprise in 2021 and has obtained the "High-tech Enterprise Certificate" which is valid for
three years and 15% corporate income tax rate is applicable within three years starting from 2021
Zhaoqing CSG Energy Saving Glass Co. Ltd. (hereinafter referred to as "Zhaoqing Energy Saving
Company") was recognized as a high-tech enterprise in 2022 and has obtained the "High-tech Enterprise
Certificate" which is valid for three years and 15% Income tax rate is applied to enterprises within three
years starting from 2022.Sichuan CSG Energy Conservation Glass Co. Ltd. (“Sichuan CSG Energy Conservation”) enjoys the
preferential corporate income tax rate for the Western Development Project. This year the corporate
income tax rate is 15%.Chengdu CSG Glass Co. Ltd. (“Chengdu CSG”) enjoys the preferential corporate income tax rate for the
Western Development Initiative. This year the corporate income tax rate is 15%.Xi'an CSG Energy Saving Glass Technology Co. Ltd. (hereinafter referred to as "Xi'an Energy Saving
Company") enjoys the preferential corporate income tax for the development of the western region. This
year the corporate income tax rate is 15%.Guangxi CSG New Energy Materials Technology Co. Ltd. (hereinafter referred to as "Guangxi New
Energy Materials Company") enjoys the preferential corporate income tax for the Western Development
Project. This year the corporate income tax rate is 15%.Qinghai CSG Risheng New Energy Technology Co. Ltd. (hereinafter referred to as "Qinghai New Energy
Company") enjoys the preferential corporate income tax for the Western Development Project. This year
the corporate income tax rate is 15%.Yichang CSG New Energy Co. Ltd. (hereinafter referred to as "Yichang New Energy Company")
Zhaoqing CSG New Energy Technology Co. Ltd. (hereinafter referred to as "Zhaoqing New Energy
Company") Xianning CSG Photovoltaic New Energy Co. Ltd. (hereinafter referred to as "Xianning
Photovoltaic Company" ) and Zhanjiang CSG New Energy Co. Ltd. (hereinafter referred to as "Zhanjiang
New Energy Company") are public infrastructure projects supported by the state as stipulated in Article
87 of the "Enterprise Income Tax Law Implementation Regulations" and can enjoy " The preferential tax
146CSG Annual Report 2023
policy of "Three years of exemption and three years of half reduction" means that starting from the tax
year in which the first production and operation income is obtained corporate income tax is exempted
from the first to the third year and the corporate income tax is halved from the fourth to the sixth year.Qingyuan CSG Quartz Material Co. Ltd. (hereinafter referred to as "Qingyuan Quartz Company") enjoys
corporate income tax preferential treatment for small and micro enterprises. According to the Ministry of
Finance and the State Administration of Taxation's Announcement No. 6 of 2023 "The Ministry of Finance
and the State Administration of Taxation on Small and Micro Enterprises and Individual Industrial and
Commercial Households" "Announcement on Preferential Income Tax Policies" from 1 January 2023 to
31 December 2024 for small and low-profit enterprises the annual taxable income does not exceed RMB
1 million a reduced rate of 25% will be included in the taxable income. pay corporate income tax at a
tax rate of 20%. According to the Announcement No. 13 of 2022 of the Ministry of Finance and the State
Administration of Taxation "Announcement of the Ministry of Finance and the State Administration of
Taxation on Further Implementing Preferential Income Tax Policies for Small and Micro Enterprises" from
1January 2022 to 31 December 2024 the annual taxable income For the amount exceeding RMB 1
million but not exceeding RMB 3 million the income shall be included in the taxable income at a reduced
rate of 25% and the corporate income tax shall be paid at a tax rate of 20%. According to the
Announcement No. 12 of 2023 of the Ministry of Finance and the State Administration of Taxation
"Announcement on Further Supporting the Development of Small and Micro Enterprises and Individual
Industrial and Commercial Households on Tax Policies" small and low-profit enterprises are calculated
at a reduced rate of 25% on taxable income and a tax rate of 20% The corporate income tax payment
policy will continue to be implemented until 31 December 2027.Anhui CSG Quartz Material Co. Ltd. (hereinafter referred to as "Anhui Quartz Company") was recognized
as a high-tech enterprise in 2023 and has obtained the "High-tech Enterprise Certificate". The certificate
is valid for three years and 15 income tax rate is applicable for years starting from 2023. .Anhui CSG New Energy Materials Technology Co. Ltd. (hereinafter referred to as "Anhui New Energy
Company") was recognized as a high-tech enterprise in 2023 and has obtained the "High-tech Enterprise
Certificate". The certificate is valid for three years starting from 2023.15% corporate income tax rate is
applied.According to the "Announcement on the Additional Value-Added Tax Deduction Policy for Advanced
Manufacturing Enterprises" (Announcement No. 43 2023 of the Ministry of Finance and the State
Administration of Taxation) the company's high-tech enterprises will from January 1 2023 to December
31 2027 On the same day advanced manufacturing enterprises are allowed to deduct an additional 5%
of the deductible input tax for the current period to deduct the value-added tax payable.V. Notes to Consolidated Financial Statements
1、Cash at bank and on hand
Item 31 December 2023 31 December 2022
Cash at bank 3051261655 3242318251
Other Currency Funds 25512563 1362289528
Total 3076774218 4604607779
147CSG Annual Report 2023
Including: Total overseas deposits 31005196 52079105
At the end of the period the amount of money used for deposits and freezes by this group was RMB
25512563.
2、Notes receivable
31 December 2023 31 December 2022
Item Carrying Carrying
Provision Book value Provision Book value
Amount Amount
Bank acceptance 1510946903 - 1510946903 156943437 - 156943437
Commercial
84258766168517582573591---
acceptance
Total 1595205669 1685175 1593520494 156943437 - 156943437
（1）Notes receivable pledged at the end of the period
Item Pledged amount
Bank Acceptance 1157485085
Total 1157485085
（2）Notes receivable that have been endorsed or discounted by the Group but have not yet matured
at the end of the period
Item Amount not derecognized at the end of the period
Bank Acceptance 268377108
Commercial Acceptance 27583198
Total 295960306
（3）Classification by bad debt accrual method
31 December 2023
Category Carrying Amount Provision
Expected credit Book value
Amount Proportion(%) Amount
loss rate (%)
Provision for bad debts
-----
on an individual basis
Provision for bad debts
159520566910016851750.111593520494
on a portfolio basis
Including:
Commercial Acceptance 84258766 5 1685175 2 82573591
Bank Acceptance 1510946903 95 - - 1510946903
Total 1595205669 100 1685175 0.11 1593520494
Continued:
148CSG Annual Report 2023
31 December 2022
Category Carrying Amount Provision for bad debts
Expected credit loss Book value
Amount Proportion(%) Amount
rate (%)
Provision for bad debts on
-----
an individual basis
Provision for bad debts
156943437100--156943437
on a portfolio basis
Including: - - -
Commercial Acceptance - - -
Bank Acceptance 156943437 100 - - 156943437
Total 156943437 100 - - 156943437
Provision amount
1 January 2023 -
Accrual for this period 1685175
31 December 2023 1685175
（4）Bad debt provisions accrued recovered or reversed in the current period
（5）There is no actual write-off of notes receivable in this period
3、Accounts receivable
（1）Disclosure by age
Aging 31 December 2023 31 December 2022
Within 1 year 1799401050 1092590056
1 to 2 years 42338430 167876479
2 to 3 years 156855077 51281059
over 3 years 81310642 48541402
Total 2079905199 1360288996
Less: provision for
198108791180296212
bad debts
Total 1881796408 1179992784
（2）Classified disclosure according to bad debt accrual method
31 December 2023
Category Carrying Amount Provision
Proportion Expected credit loss Book value
Amount Amount
(%) rate (%)
Provision for bad debts on
17635701481600748409116282174
an individual basis
149CSG Annual Report 2023
Provision for bad debts
1903548185923803395121865514234
on a portfolio basis
in:
Receivables from unrelated
1903548185923803395121865514234
parties
Total 2079905199 100 198108791 10 1881796408
Continued:
31 December 2022
Category Carrying Amount Provision
Expected credit loss Book value
Amount Proportion(%) Amount
rate (%)
Provision for bad debts on
196468864141570198098039449055
an individual basis
Provision for bad debts
1163820132862327640321140543729
on a portfolio basis
Including:
Receivables from
1163820132862327640321140543729
unrelated parties
Total 1360288996 100 180296212 13 1179992784
Accounts receivable with provision for bad debts on an individual basis
31 December 2023
Name Provision Expected Carrying
for bad credit loss Basis for accrual
Amount
debts rate (%)
Mainly because the commercial acceptance bills
issued by Evergrande and its subsidiaries that were
Total of
endorsed by customers could not be paid and were
single-
transferred from notes receivable to accounts
item 176357014 160074840 91
receivableand part of the receivables from
accrual
customers due to business disputes or customer
customers
business deterioration part or full provision for bad
debts.Continued:
31 December 2022
Name Carrying Provision for Expected credit
Basis for accrual
Amount bad debts loss rate (%)
Mainly because the commercial
acceptance bills issued by
Evergrande and its subsidiaries that
were endorsed by customers could
Total of
not be paid and were transferred
single-item
196468864 157019809 80 from notes receivable to accounts
accrual
receivable and part of the
customers
receivables from customers due to
business disputes or customer
business deterioration part or full
provision for bad debts.
150CSG Annual Report 2023
Accounts receivable with provision for bad debts on a group basis
31 December 2023 31 December 2022
Expected Provision Expected Provision for
Carrying Amount credit loss Carrying Amount for bad credit loss
bad debts
rate (%) debts rate (%)
Combined
19035481853803395121163820132232764032
customers
Portfolio accrual items: accounts receivable from non-related parties
（3）Bad debt provisions accrued recovered or reversed in the current period
Bad debt provision amount
1 January 2023 180296212
Accrual for this period 46641194
Withdraw or transfer in this period 27694156
Write-off in this period 1134459
31 December 2023 198108791
（4）Actual write-off of accounts receivable in the current period
Item Write-off amount
Accounts receivable actually written off 1134459
（5）The top five companies with closing balances of accounts receivable collected by debtors
The total amount of the top five accounts receivable at the end of the period collected by the debtors in
this period is 801041861 yuan accounting for 39% of the total ending balance of accounts receivable.The corresponding summary amount of the ending balance of bad debt provisions is 16020837 yuan.
4、Receivables Financing
Item 31 December 2023 31 December 2022
Bank acceptance 529945623 1095412643
Bank acceptance measured at fair value 529945623 1095412643
The Group discounts and endorses part of the bank acceptance bills based on its daily capital
management needs so the subsidiary's bank acceptance bills are classified as financial assets measured
at fair value with changes included in other comprehensive income.The Group has no single bank acceptance bill for which impairment provision is made. At the end of the
current period the Group believes that there is no significant credit risk in the bank acceptance bills held
and no significant losses will be incurred due to bank defaults.
151CSG Annual Report 2023
5、Prepayments
（1）Prepayments are disclosed based on aging
31 December 2023 31 December 2022
Aging
Amount Proportion% Amount Proportion%
Within 1 year 155075823 100 182578314 100
1 to 2 years 395256 377211
2 to 3 years 1766 153800
over 3 years 3800 520498
Total 155476645 100 183629823 100
（2）The top five units with closing balance of prepayments collected by prepayment objects
Percentage in total advances to
Item 31 December 2023
suppliers balance
Total prepayments of the top five
8761260056
balances
6、Other receivables
Item 31 December 2023 31 December 2022
Other receivables 177957033 193847322
（1）Disclosure by age
Balance at the end of the previous
Aging 31 December 2023
year
Within 1 year (including 1 year) 22612560 27945528
1 to 2 years 1819789 31332255
2 to 3 years 20535190 1421606
3 to 4 years 1058546 563830
4 to 5 years 450650 2066855
More than 5 years 198440032 196622842
Total 244916767 259952916
(2) Disclosure according to the nature of the payment
Item 31 December 2023 31 December 2022
Talent Fund Receivable (Note ) 171000000 171000000
Disbursements 40125087 49075321
Advance payment 10366164 10366164
Refundable deposits 9033990 16456690
152CSG Annual Report 2023
Reserve loan 594514 963222
Others 13797012 12091519
Total 244916767 259952916
Less: provision for bad debts 66959734 66105594
Total 177957033 193847322
Note: This fund is a subsidy fund given to the group by the government. The company entrusted its wholly-
owned subsidiary Yichang CSG Silicon Materials Co. Ltd. to collect the fund. The Yichang High-tech
Zone Management Committee also paid the full amount to Yichang CSG Silicon in 2014. After receiving
the funds Yichang CSG Silicon Materials Co. Ltd. transferred the full amount to Yichang Hongtai Real
Estate Co. Ltd. without appropriate approval by the then company's board of directors and other
competent authorities. Yichang CSG Silicon Materials Co. Ltd. received the above funds from February
21 2014 to April 28 2014 and then transferred the entire amount to Yichang Hongtai Real Estate Co.
Ltd.The company filed an infringement compensation lawsuit against Zeng Nan and others and Yichang
Hongtai Real Estate Co. Ltd. on December 15 2021 and the Shenzhen Intermediate People's Court
officially accepted the lawsuit on January 28 2022. The first instance of the case was completed in
Shenzhen Intermediate People's Court on June 21 2022 and is currently awaiting judgment.
(3) Bad debt provision accrual
Bad debt provisions in the first stage at the end of the period
Expected credit
loss rate in the Provision for bad
Category Carrying Amount Book value
next 12 months debts
(%)
Provision for bad debts on an
individual basis
Provision for bad debts on a
565227862105092355471863
portfolio basis
Unrelated party combination 56522786 2 1050923 55471863
There is no provision for bad debts in the second stage at the end of the period
Bad debt provisions in the third stage at the end of the period
Expected credit
loss rate Provision for bad
Category Carrying Amount Book value
throughout the debts
duration (%)
Provision for bad debts on an
individual basis
Company 1 171000000 30 51300000 119700000
Company 2 10366164 100 10366164 -
Company 3 5570340 50 2785170 2785170
Individual 4 322905 100 322905 -
Company 5 1134572 100 1134572 -
153CSG Annual Report 2023
Total 188393981 35 65908811 122485170
Bad debt provisions in the first stage at the end of the previous year
Expected credit
loss rate in the Provision for bad
Category Carrying Amount Book value
next 12 months debts
(%)
Provision for bad debts on an
individual basis
Provision for bad debts on a
726935072133135571362152
portfolio basis
Unrelated party combination 72657507 2 1330635 71326872
Related party portfolio 36000 2 720 35280
There is no provision for bad debts in the second stage at the end of the previous year
Bad debt provisions in the third stage at the end of the previous year
Expected credit
loss rate Provision for bad
Category Carrying Amount Book value
throughout the debts
duration (%)
Provision for bad debts on an
individual basis
Company 1 171000000 30 51300000 119700000
Company 2 10366164 100 10366164 -
Company 3 5570340 50 2785170 2785170
Individual 4 322905 100 322905 -
Total 187259409 35 64774239 122485170
(4) Bad debt provisions accrued recovered or reversed in the current period
Stage 1 Stage 2 Stage 3
Provision for bad Expected credit losses Expected credit losses Expected credit
debts throughout the entire throughout the lifetime
Total
losses over the
duration (no credit (credit impairment has
next 12 months
impairment has occurred) occurred)
1 January 2023 1331355 - 64774239 66105594
Carrying amount on 1st
January 2023 that in
this period:
Accrual for this period 314469 - 1134572 1449041
Transferred in this
594901--594901
period
Sales in this period - - - -
Write-off in this period - - - -
Other changes - - - -
31 December 2023 1050923 - 65908811 66959734
154CSG Annual Report 2023
(5) No other receivables actually written off in this period
(6) Top five companies with closing balance of other receivables collected by debtors
Proportion to the
Ending balance
Company Nature of Closing balance of total closing
Aging of bad debt
name payment other receivables balance of other
provision
receivables (%)
independent More than 5
Company 1 171000000 70 51300000
third party years
independent
Company 2 14000000 2-3 years 6 280000
third party
independent More than 5
Company 3 11556004 5 231120
third party years
independent More than 5
Company 4 10366164 4 10366164
third party years
independent
Company 5 5570340 2-3 years 2 2785170
third party
Total 212492508 87 64962454
7、Inventories
（1）Inventory classification
31 December 2023
Item Preparation for price
Carrying Amount Book value
decline
Raw materials 568803335 1935371 566867964
Work in
29941046-29941046
progress
Finished goods 928685781 28179241 900506540
Turnover
9309312718388292909245
materials
Total 1620523289 30298494 1590224795
Continued
31 December 2022
Item Preparation for price
Carrying Amount Book value
decline
raw materials 646622778 9065792 637556986
Work in progress 31745770 31745770
Finished goods 1067004894 20645880 1046359014
Turnover materials 68702610 422398 68280212
Total 1814076052 30134070 1783941982
（2）Provision for inventories
Item 1 January 2023 Increased in this Decrease in this 31 December 2023
155CSG Annual Report 2023
issue period
Provision Transfer or resale
Raw materials 9065792 972416 8102837 1935371
Finished goods 20645880 27069818 19536457 28179241
Turnover materials 422398 109140 347656 183882
Total 30134070 28151374 27986950 30298494
Provision for inventory decline (continued)
Reasons for the reversal or write-
Specific basis for determining net
off of inventory depreciation
realizable value/residual
Item reserves/contract performance
consideration and costs to be
cost impairment reserves in the
incurred
current period
Estimated selling price of finished
Raw materials products less completion costs and Sales achieved
taxes
Estimated selling price of a single
Finished goods Sales achieved
product minus sales tax
Turnover materials The recoverable amount is 0 Use or scrap
8、Noncurrent Assets Due within One Year
Item 31 December 2023 31 December 2022
Large-denomination certificates of
8419122420000000
deposit maturing within one year
9、Other current assets
Item 31 December 2023 31 December 2022
VAT to be offset 260361670 45198116
Enterprise income tax prepaid 18127608 30407477
VAT input to be recognised 33577420 32642483
Term deposits with a maturity of less
40000000
than one year
Others 469
Total 352066698 108248545
(1) The new large amount of value-added tax to be deducted in this period is mainly caused by the large
new engineering procurement expenditure of subsidiary Qinghai CSG Risheng.
10、Investment properties
（1）Investment properties measured at fair value
Item Houses buildings and related land use rights
156CSG Annual Report 2023
1. 1 January 2023 290368105
2. Changes in this period -
3. 31 December 2023 290368105
（2）Failure to obtain property rights certificate
None
11、Fixed assets
1 (1) Fixed assets
Mechinery and Motor vehicles and
Item Buildings Total
equipment others
1. Original book value:
1. 1 January 2023 5305705728 14283099277 294024553 19882829558
2. Increase amount in this period 1006208137 3441878955 90582853 4538669945
(1) Purchase 3869287 49647181 30929892 84446360
(2) Transfer of projects under
9992895703380191472534226424432903684
construction
(3) Other additions 3049280 12040302 6230319 21319901
3. Reduction amount in this
38818141579741559154916681599115041
period
(1) Disposal or scrapping - 183538135 11625202 195163337
(2) Transfer to construction in
138179241117184071383510818
progress
( 3 ) Other reductions 3881814 14411013 2148059 20440886
4. 31 December 2023 6308032051 16145236673 369115738 22822384462
2. Accumulated depreciation
1. 1 January 2023 1214780507 5985207126 245329297 7445316930
2. Increase amount in this period 197060230 898167527 40656838 1135884595
(1) Provision 194909913 898021280 37791825 1130723018
(2) Other additions 2150317 146247 2865013 5161577
3. Reduction amount in this
264726085261612266774273122037
period
(1) Disposal or scrapping - 77213610 11345065 88558675
(2) Transfer to construction in
178386741101347178488088
progress
( 3 ) Other reductions 2647 5252265 820362 6075274
4. 31 December 2023 1411838090 6622522037 273719361 8308079488
3. Impairment provision
1. 1 January 2023 152839987 1040644542 791924 1194276453
2. Increase amount in this period - 370129469 179736 370309205
(1) Accrual 251248816 1058 251249874
157CSG Annual Report 2023
(2) Other additions 118880653 178678 119059331
3. Reduction amount in this
-195157138692177195849315
period
(1) Disposal or scrapping 86999018 192155 87191173
(2) Other reductions 108158120 500022 108658142
4. 31 December 2023 152839987 1215616873 279483 1368736343
4. Book value
1. Book value at the end of the
474335397483070977639511689413145568631
period
2. Book value at the beginning of
393808523472572476094790333211243236175
the period
Note: Yichang Display a subsidiary of the Group conducted a fixed asset impairment test in this period.The recoverable amount is determined based on the present value of the expected future cash flows. The
present value of the asset group’s expected future cash flows is based on the asset group’s continued
use and final value. The estimated future cash flow generated during disposal is determined by selecting
the appropriate discount rate to discount the amount.Among them the Yichang Display discount rate is selected using the pre-tax weighted average capital
cost and the present value of the pre-tax cash flow using the pre-tax discount rate = the discounted value
of the after-tax cash flow using the after-tax discount rate is calculated.The after-tax discount rate uses
the weighted average cost of capital valuation model ("WACC") and the calculated result is 8.11%.The forecast period is from 2024 to 2031. It is determined based on the estimated useful life of the main
production line equipment being 8 years.
158CSG Annual Report 2023
12、Construction in progress
（1）Details of projects under construction
31 December 2023 31 December 2022
Item Carrying Impairment Carrying Impairment net book
net book value
Amount provision Amount provision value
A new high-purity crystalline silicon project with an annual output of
264643078526464307851031900910319009
50000 tons in Haixi Prefecture Qinghai Province
Guangxi Beihai Photovoltaic Green Energy Industrial Park (Phase I)
7281038117281038113321375333213753
Project
Xi'an CSG energy-saving glass production line project 222583993 222583993 41694021 41694021
Qingyuan CSG Phase I Upgrading Technical Transformation Project 228055647 116909920 111145727 225748578 94897536 130851042
Anhui Fengyang newly built 37.6 MW distributed photovoltaic power
8335443283354432
generation project
Anhui Fengyang Solar Equipment Lightweight and Highly
917798737917798737
Transparent Panel Manufacturing Base Project
Xianning CSG 1200T/D ton photovoltaic packaging material
721820302721820302
production line project
Hebei Windows Ultra-Thin Electronic Glass Second Line
352366352366256034845256034845
Construction Project
Dongguan Photovoltaic Building B 450MWPERC battery technology
18686674318499807618686671868667431849980761868667
upgrade project
Wujiang Engineering New Engineering Glass Intelligent
1204731204737288533672885336
Manufacturing Factory Construction Project
Zhaoqing CSG high-end automotive glass production line project 1295717 1295717 40439362 40439362
Dongguan Solar G6/G7 Line Process and Equipment Upgrading
3779411437794114
Project
Zhaoqing CSG high-end energy-saving glass production line project 4360729 4360729 14799352 14799352
Anhui Fengyang Quartz Sand Project 403753 403753
Wujiang Float Lightweight and High-efficiency Double Glass 53098 53098
159CSG Annual Report 2023
Processing Production Line Construction Project
Yichang CSG Polysilicon Technical Transformation Project 507815356 56888576 450926780
Xianning energy-saving production line reconstruction and expansion
255855012558550155496815549681
construction project
Other projects 53082808 4195369 48887439 302126986 67289767 234837219
Total 4688008361 362991941 4325016420 2867547670 347185379 2520362291
2 (2) Movement of significant projects of construction in progress
Including:
Interest
Accumulated Amount of
Transfer to Other capitalization
Increase in amount of interest 31 December
Project name 1 January 2023 fixed assets in decreases in rate for the
current year interest capitalization 2023
current year current year current
capitalization for the current
period %
period
Qingyuan CSG Phase I
Upgrading Technical 225748578 2396602 89533 - - - - 228055647
Transformation Project
Zhaoqing CSG high-end
automotive glass 40439362 55025636 94169281 1295717
production line project
Guangxi Beihai
Photovoltaic Green
3321375370514709374420812814954462249745701312.20728103811
Energy Industrial Park
(Phase I) Project
A new high-purity
crystalline silicon project
with an annual output of
103190092636455139343363-425196942519694.172646430785
50000 tons in Haixi
Prefecture Qinghai
Province
Anhui Fengyang Solar
Equipment Lightweight
917798737615304618153310335545615843117313302.75-
and Highly Transparent
Panel Manufacturing
160CSG Annual Report 2023
Base Project
Anhui Fengyang newly
built 37.6 MW distributed
83354432--4028054028054.0783354432
photovoltaic power
generation project
Xi'an CSG energy-
saving glass production 41694021 180889972 - - 1939591 1939591 3.58 222583993
line project
Xianning CSG 1200T/D
ton photovoltaic
72182030212922523285104553413945275-65054683.60
packaging material
production line project
Total 1991033762 4407798724 2486193147 2814954 70777980 16390358 3909824385
161CSG Annual Report 2023
Movement of significant projects of construction in progress ( continued):
The cumulative
investment in the
project
Project name Budget project as a Sources of funds
progress%
proportion of the
budget
Own funds and
Qingyuan CSG Phase I Upgrading
534870000 4% 4% loans from financial
Technical Transformation Project
institutions
Zhaoqing CSG high-end automotive
609830000 24% 24% private capital
glass production line project
Own funds and
Guangxi Beihai Photovoltaic Green
4942051800 15% 15% loans from financial
Energy Industrial Park (Phase I) Project
institutions
A new high-purity crystalline silicon
Own funds and
project with an annual output of 50000
4498192210 59% 59% loans from financial
tons in Haixi Prefecture Qinghai
institutions
Province
Anhui Fengyang Solar Equipment Own funds and
Lightweight and Highly Transparent 3739020000 86% 100% loans from financial
Panel Manufacturing Base Project institutions
Anhui Fengyang newly built 37.6 MW Own funds and
distributed photovoltaic power 146640000 57% 57% loans from financial
generation project institutions
Own funds and
Xi'an CSG energy-saving glass
494000000 45% 45% loans from financial
production line project
institutions
Xianning CSG 1200T/D ton photovoltaic
packaging material production line 905571798 96% 100%
project
Total 15870175808 -- -- --
3 (3) Provision for impairment of projects under construction
Provision for Other Decrease in 31 December
Project name 1 January 2023
this period additions this period 2023
Qingyuan CSG Phase I
Upgrading Technical 94897536 22012384 116909920
Transformation Project
Dongguan Photovoltaic
Building B 450MWPERC
184998076-184998076
battery technology
upgrade Project
Other projects 67289767 4195367 51769566 119059331 4195369
Yichang CSG Polysilicon
Technical Transformation - 56888576 - 56888576
Project
Total 347185379 26207751 108658142 119059331 362991941
During this period an impairment test was conducted on the construction in progress. The recoverable
amount of the assets was determined based on the net amount after deducting the disposal costs from
162CSG Annual Report 2023
the fair value. The fair value was mainly evaluated using the replacement cost method. Appraisal value =
full replacement price × new value Rate.The full replacement price generally includes equipment purchase fees transportation and miscellaneous
fees installation and commissioning fees basic fees upfront and other expenses and capital costs; the
content and method of calculating expenses (costs) other than equipment purchase fees are based on
the characteristics of the relevant equipment and the evaluation process. The price caliber and transaction
conditions of the equipment obtained are determined.Newness rate = remaining useful life of the equipment ÷ (used years of the equipment + remaining useful
life of the equipment) × 100%.The disposal costs mainly include stamp duty legal fees property rights transaction fees appraisal fees
and other expenses; according to the Stamp Duty Law of the People's Republic of China the "Stamp
Duty Items and Rates Table" and the "Opinions on Further Standardizing Lawyer Service Charges" (Si
Fa Tong [Sifa Tong] 2021] No. 87. According to the "Notice of the Guangdong Provincial Price Bureau on
the Charging Standards for Property Rights Transaction Services" (Guangdong Price [1999] No. 282) and
the assessment industry charging standards the total disposal fee is calculated at 5% after
comprehensive consideration.
13、Right-of-use assets
Item Land Buildings Total
1. Original book value:
1. 1 January 2023 11790434 - 11790434
2. Increase amount in this period 10032601 2984415 13017016
(1) Rent 10032601 2984415 13017016
3. Reduction amount in this period - - -
4. Closing balance 21823035 2984415 24807450
2. Accumulated depreciation -
1. 1 January 2023 1882021 1882021
2. Increase amount in this period 1138580 149221 1287801
(1) Accrual 1138580 149221 1287801
3. Reduction amount in this period - - -
4. Closing balance 3020601 149221 3169822
3. Impairment provision -
1. 1 January 2023 - - -
2. Increase amount in this period - - -
3. Reduction amount in this period - - -
4. Closing balance - - -
4. Book value -
1. Closing book value 18802434 2835194 21637628
163CSG Annual Report 2023
2. Book value at the beginning of the period 9908413 - 9908413
Note: The new leases in this period are the land and buildings leased by Wuxuan Nanxin Mining Co. Ltd. a
subsidiary of the Group from minority shareholders. The lease period is from June 2023 to May 2033
14、Intangible assets
（1）Intangible assets
Patents and
Exploitation
Item Land use rights proprietary Others Total
rights
technologies
1. Original book value
1. 1 January 2023 1425431642 502074878 5351751 54579056 1987437327
2. Increase amount in this
44382500616783071086319795181289131210509515
period
(1) Purchase 44382500 1086319795 18128913 1148831208
(2) Internal research and
-61678307--61678307
development
3. Reduction amount in this
---123543123543
period
(1) Disposal - - - 123543 123543
4. 31 December 2023 1469814142 563753185 1091671546 72584426 3197823299
2. Accumulated amortization -
1. 1 January 2023 258193337 227328706 4775067 45827071 536124181
2. Increase amount in this
34957321356500393600191310344226116953499
period
(1) Accrual 34957321 35650039 36001913 10344226 116953499
3. Reduction amount in this
---114410114410
period
(1) Disposal - - - 114410 114410
4. Closing balance 293150658 262978745 40776980 56056887 652963270
3. Impairment provision -
1. 1 January 2023 13201347 9133 13210480
2. Increase amount in this
-411150841337441128458
period
(1) Accrual 41115084 13374 41128458
3. Reduction amount in this
-91339133
period
(1) Disposal 9133 9133
4. Closing balance - 54316431 13374 54329805
4. Book value -
1. Closing book value 1176663484 246458009 1050894566 16514165 2490530224
2. Book value at the
116723830526154482557668487428521438102666
beginning of the period
164CSG Annual Report 2023
* At the end of the period the proportion of intangible assets formed through internal research and
development to the balance of intangible assets was 15%.
15、Development expenditure
Increased in Decrease in 31 December
1 January 2023
current year current year 2023
Development expenditure 46755816 14922491 61678307 -
For details are disclosured in Note Research and Development Expenditures.
16、Goodwill
（1）Original book value of goodwill
Increased in this Decrease in
Name of the invested unit or matters issue this period 31 December
1 January 2023
forming goodwill Formed by 2023
Dispose
business merger
Tianjin CSG Architectural Glass Co. Ltd 3039946 - - 3039946
Xianning CSG Photoelectric 4857406 - - 4857406
Shenzhen CSG Display 389494804 - - 389494804
Guangdong Licheng Company - 696000 - 696000
Total 397392156 696000 - 398088156
（2）Provision for impairment of goodwill
Increased in
Decrease in
Name of the invested unit or matters this period
1 January 2023 this period
31 December
forming goodwill Accrual 2023
Dispose
Shenzhen CSG Display(i) 389494804 - - 389494804
Total 389494804 - - 389494804
17、Long-term prepaid expenses
Decrease in this
Increased in this period
Item 1 January 2023 31 December 2023
issue Amortization for
the current period
Various prepaid expenses 2647939 21102553 4986063 18764429
165CSG Annual Report 2023
18、Deferred tax assets and liabilities
（1）Deferred income tax assets before offsetting
31 December 2023 31 December 2022
Item Deductible/taxable Deductible/taxable Deferred tax Deferred tax
temporary temporary
assets/liabilities assets/liabilities
differences differences
Deferred tax assets:
Provision for asset impairments 988603433 149485849 740627003 112511365
Deductible losses 500056218 88815735 362029963 65461019
Government grants 171767926 26346666 160233122 25185546
Accrued expenses 6854739 1028211 8584847 1287727
Depreciation of fixed
1248103531938682510085977315955296
assets etc
Total 1792092669 285063286 1372334708 220400953
Deferred tax liability:
Depreciation of fixed assets 571131285 86841423 663136097 100893303
Investment properties 368564944 55284742 368564944 55284742
Total 939696229 142126165 1031701041 156178045
（2）Deferred tax assets or liabilities presented net of offsets
Closing The balance of
The offset amount
The amount of offset balance of deferred income
of deferred income
of deferred income deferred tax assets or
tax assets and
Item tax assets and income tax liabilities at the
liabilities at the
liabilities at the end assets or end of the
end of the
of the period liabilities after previous year after
previous year
offsetting offsetting
Deferred tax assets 62038255 223025031 58911204 161489749
Deferred tax liability 62038255 80087910 58911204 97266841
（3）Details of deductible temporary differences and deductible losses that have not been recognized
as deferred income tax assets
Item 31 December 2023 31 December 2022
Deductible losses 1168354313 1713248298
Total 1168354313 1713248298
166CSG Annual Report 2023
（4）Deductible losses that have not been recognized as deferred income tax assets will expire in the
following years
Year 31 December 2023 31 December 2022 Notes
2023——146238837
2024103008917178208832
2025502484452745942821
2026557374493642332904
2027524904524904
20284961547——
Total 1168354313 1713248298
19、Other non-current assets
31 December 2023 31 December 2022
Item Carrying Impairment Carrying Impairment
Book value Book value
Amount provision Amount provision
Prepayment for equipment
390090354390090354194410485194410485
and project
Prepayment for lease of
651000065100002421000024210000
land use rights
Fixed deposits - - 80000000 80000000
Prepaid exploitation rights - - 558000000 558000000
Total 396600354 396600354 856620485 856620485
20、Assets with restricted ownership or use rights
31 December 2023
Item restricted
Carrying Amount Book value Restricted type
situation
Circulation restrictions
Cash at bank and
25512563 25512563 such as deposits and Cash and bank
on hand
freezes are restricted
Notes receivable 1157485085 1157485085 Staking is restricted Notes receivable
Financing lease
Fixed assets 416947659 106982081 Fixed assets
restricted
Total 1599945307 1289979729
Continued:
31 December 2022
Item restricted
Carrying Amount Book value Restricted type
situation
Cash at bank and 10589528 10589528 Circulation Cash and bank
167CSG Annual Report 2023
on hand restrictions such as
deposits and freezes
are restricted
Notes receivable 156943437 156943437 Staking is restricted Notes receivables
Financing lease
Fixed assets 416947659 132370370 Fixed assets
restricted
Total 584480624 299903335
21、Short-term loan
（1）Short-term loan classification
Item 31 December 2023 31 December 2022
Credit loan 108426590 201000000
Guaranteed loan 320893730 144000000
Discounted bills 7533263
Total 436853583 345000000
22、Notes payable
Type 31 December 2023 31 December 2022
Commercial acceptance 90836911 290779095
Bank acceptance 1950516278 703778401
Total 2041353189 994557496
23、Accounts payable
Item 31 December 2023 31 December 2022
Materials payable 938666542 813677642
Equipment payable 994552522 483253256
Construction expenses payable 1206275761 576821441
Freight payable 143114233 88104366
Utilities payable 50982984 64738721
Others 8032560 6947201
Total 3341624602 2033542627
Significant accounts payable aged more than one year
Reasons for non-repayment or
Item 31 December 2023
non-carryover
Engineering and equipment Since the final accounts of the
253959618
payments etc. relevant projects have not yet been
168CSG Annual Report 2023
completed they have not yet been
settled.
24、Contract liabilities
Item 31 December 2023 31 December 2022
Contract liabilities 362538795 418051975
25、Payroll payable
Increased in this Decrease in this 31 December
Item 1 January 2023
issue period 2023
A. Short-term compensation 464930939 2133052776 2117811480 480172235
B. Post-employment benefits-
8685489183310663191996152-
Defined contribution plans payable
C. Termination benefits 9830255 6664694 3165561
Total 473616428 2326193694 2316472326 483337796
（1）Short-term compensation
Increased in this Decrease in this 31 December
Item 1 January 2023
issue period 2023
1. Wages and salaries bonus
43842332819764461721959360949455508551
allowances and subsidies
2. Social security 1583272 79265229 80848501 -
Including:Medical insurance 957621 68888108 69845729 -
Work injury insurance 559430 7951575 8511005 -
Maternity insurance 66221 2425546 2491767 -
3. Housing Provident Fund 891279 54431398 54442588 880089
4. Labour union expenditure and
24033060229099772315944223783595
Personnel education
Total 464930939 2133052776 2117811480 480172235
（2）Defined Contribution Plan
Increased in this Decrease in this 31 December
Item 1 January 2023
issue period 2023
Post-employment benefits-defined
8685489183310663191996152-
contribution plan
1. Basic pensions 8403902 176643952 185047854 -
2. Unemployment insurance 281587 6666711 6948298 -
Total 8685489 183310663 191996152 -
169CSG Annual Report 2023
26、Taxes payable
Taxes 31 December 2023 31 December 2022
VAT 44410002 91809300
Enterprise income tax payable 50021929 38330878
Individual income tax payable 6633485 7688833
Urban maintenance and construction tax
26675046755889
payable
Education surtax payable 2209407 4953777
Property tax payable payable 8590406 4877079
Environmental protection tax payable 1842557 1252845
Others 7032123 5466037
Total 123407413 161134638
27、Other payables
Item 31 December 2023 31 December 2022
Interest payable 8751408 99945325
Other payables 475990469 437119859
Total 484741877 537065184
（1）Interest payable
Item 31 December 2023 31 December 2022
Interest of long-term borrowings with
periodic payments of interest and return 8082760 5754599
of principal at maturity
Interest of corporate bonds - 92258065
Interest of short-term borrowings 668648 1932661
Total 8751408 99945325
（2）Other payables (Disclosured by nature)
Item 31 December 2023 31 December 2022
Guarantee deposits received from
351439479331974002
construction contractors
Accrued cost of sales(note) 67861475 62936670
Temporary receipts for third parties 7277368 2318135
Payable for contracted labour costs 27689963 28696828
Others 21722184 11194224
170CSG Annual Report 2023
Total 475990469 437119859
Note: It represented the payment made to external third parties arising from undertaking the rights of
debtor and creditor comprising water and electricity professional service fee and travelling expenses
etc.
28、Current portion of non-current libilities
Item 31 December 2023 31 December 2022
Current portion of long-term
1206872898443216290
borrowings
Current portion of debentures payable 1999316522
Current portion of long-term account
4093971838900194
payable
Lease liabilities due within one year 1079363 -
Total 1248891979 2481433006
29、Other current liabilities
Item 31 December 2023 31 December 2022
Output VAT to be transferred 44121680 50107240
Notes that derecognised 288534731 -
Supply Chain Finance etc. 121676275 300000
Total 454332686 50407240
30、Long-term borrowings
Item 31 December 2023 31 December 2022
Credit loan 1949750000 1564220000
Guaranteed loan 5478771574 3232586270
Total 7428521574 4796806270
Less: Long-term borrowings due
1206872898443216290
within one year
Total 6221648676 4353589980
31、Lease liabilities
Item 31 December 2023 31 December 2022
Lease liability 16213925 3564330
Less: Lease liabilities due within one
1079363-
year
Total 15134562 3564330
171CSG Annual Report 2023
32、Long-term payables
Item 31 December 2023 31 December 2022
Long-term payables 88204163 129236878
（1）Long-term payables (disclosured by nature)
Item 31 December 2023 31 December 2022
Finance lease payments payable 129143881 168137072
Less: Long-term payables due within
4093971838900194
one year
Total 88204163 129236878
33、Provisions
Item 31 December 2023 31 December 2022 Causes
Pending litigation 1251941 -
Retirement obligation 11798141 - Note
Total 13050082 -
Note: In accordance with legal provisions such as the "Mining Geological Environmental Protection
Regulations" and the "Land Reclamation Regulations" the company estimates disposal costs in
accordance with the relevant provisions of the Accounting Standards for Business Enterprises.
34、Deferred Income
Increased in this Decrease in this 31 December
Item 1 January 2023 Causes
issue period 2023
Government
4498753803069095050422500430143830
grants
For details of government grants included in deferred income please refer to Note Government grants.
35、Share capital (unit: share)
Item 1 January 2023 Movement for the year ended 31 December 2023 (+ -) 31 December 2023
Conversion of
Issue new Bonus Provident
Other Subtotal
shares shares Fund into
Shares
Total number
of ordinary 3070692107 - - - - - 3070692107
shares
172CSG Annual Report 2023
36、Capital reserve
1 January Increased in this Decrease in this
Item 31 December 2023
2023 issue period
Share premium 655424260 - 6257671 649166589
Other capital surplus -58427175 - -58427175
Total 596997085 - 6257671 590739414
Note: The decrease in capital reserve in this period was caused by the purchase of minority shareholders’
equity in the subsidiary Dongguan Jingyu.
37、Other comprehensive income
Other comprehensive income attributable to the parent company in the balance sheet:
2023
Less: Included in
other comprehensive 31 December
1 January 2023
Item income in the
(1) Attributable to parent
2023(4)=(1)
previous period and
company after tax (2) + (2) - (3)
transferred to
retained earnings in
the current period (3)
1. Other comprehensive
income items which will not
be reclassified - - - -
subsequently to profit or
loss
2. Other comprehensive
income items which will be
1708604786523993-177384471
reclassified subsequently to
profit or loss
1. Difference on translation of
foreign currency financial 7158681 6523993 - 13682674
statements
2. Financial rewards
for energy-saving technical 2550000 - - 2550000
retrofits
3. Investment properties 161151797 - - 161151797
Total other comprehensive
1708604786523993-177384471
income
Other comprehensive income attributable to the parent company in the income statement:
2023
Amount before Less: included in other Less: Attributable
Item Less: Income income tax for comprehensive income Attributable to parent
tax expense
the current in the previous period to minority company
(3)
period (1) and transferred to shareholder after tax (5) =
173CSG Annual Report 2023
profit and loss in the s after tax (4) (1)-(2)-(3)-(4)
current period (2)
1. Other
comprehensive
income that will - - - - -
not be reclassified
into profit or loss
2. Other
comprehensive
income that will be 6523993 - - - 6523993
reclassified into
profit and loss
Including:Difference
on translation of
65239936523993
foreign currency
financial statements
Total 6523993 - - - 6523993
38、Special reserves
Increased in this Decrease in this
Item 1 January 2023 31 December 2023
issue period
Safety production
7315801007796993984101411139
costs
The special reserves added in this period are the production safety expenses of special equipment
extracted according to the prescribed standards in accordance with the "Administrative Measures
for the Extraction and Use of Enterprise Safety Production Expenses" by Yichang Silicon Materials
a subsidiary of the Group. The amount of reserves is reduced in this period based on actual usage.
39、Surplus reserve
Increased in this Decrease in this
Item 1 January 2023 31 December 2023
issue period
Statutory surplus reserve 1100781433 175429297 - 1276210730
Discretionary surplus reserve 127852568 - - 127852568
Total 1228634001 175429297 - 1404063298
40、Undistributed profits
Extract or
Item 2023 2022
Distribution ratio
Undistributed profits at the end of the previous period
77869684556447650867--
before adjustments
Adjust the total amount of undistributed profits at
----
the beginning of the period (increase + decrease -)
Adjusted opening undistributed profits 7786968455 6447650867
Add: Net profit attributable to shareholders of the parent
16556144462037202500--
company for the current period
174CSG Annual Report 2023
Less: Withdrawal from statutory surplus reserve 175429297 83746491
Dividends payable on common shares 460603816 614138421
Undistributed profit at the end of the period 8806549788 7786968455
41、Operating income and operating costs
（1）Operating income and operating costs
20232022
Item
Revenue Cost Revenue Cost
Principal operation 17974268654 14049399952 14944821360 10882072965
Other operations 220595712 91672219 253885638 124722408
Total 18194864366 14141072171 15198706998 11006795373
（2）Operating income and operating costs by industry (or product type)
20232022
Main product type (or industry)
Revenue Cost Revenue Cost
Principal operation:
Glass industry 14610084880 11470733662 9998264863 7642662331
Electronic glass and display device
1526088005129760029815967330961226054958
industry
Solar energy and other industries 2090567358 1536136861 3690753344 2356518419
Unassigned industry type 2599280 - 2232800 -
Inter-segment elimination -255070869 -255070869 -343162743 -343162743
Total 17974268654 14049399952 14944821360 10882072965
Other business:
Sales of raw materials and others 220595712 91672219 253885638 124722408
Total 18194864366 14141072171 15198706998 11006795373
（3）Operating income and operating costs by region
Principal 2023 2022
operation areas Revenue Cost Revenue Cost
Chinese mainland 16639820052 12884833088 14031154824 10079593782
Overseas 1555044314 1256239083 1167552174 927201591
Total 18194864366 14141072171 15198706998 11006795373
175CSG Annual Report 2023
（4）Main business Revenue and main business costs by the time of commodity transfer
2023
Electronic glass and display Solar energy and other Unassigned
Item Glass industry Inter-segment elimination
device industry industries industry type
Revenue Cost Revenue Cost Revenue Cost Revenue Cost Revenue Cost
Main business
Among them:
confirmed at a
146100848801147073366215260880051297600298209056735815361368612599280--255070869-255070869
certain point in
time
Total 14610084880 11470733662 1526088005 1297600298 2090567358 1536136861 2599280 - -255070869 -255070869
176CSG Annual Report 2023
42、Taxes and surcharges
Item 2023 2022
Urban maintenance and construction
3646112038620656
tax
Education fee surcharge 29929326 31008119
Property tax 44961520 31807938
Land holding tax 22258942 17451373
Stamp duty 13454419 8844793
Environmental protection tax 6287965 4814077
Others 5024847 2926836
Total 158378139 135473792
For details on the calculation and payment standards of various taxes and surcharges please refer to
Note Taxes.
43、Sales expenses
Item 2023 2022
Employee's salary 209449335 209351728
Social entertainment expenses 25427207 19052349
Travel expenses 14561148 8234864
Rental fees 11347234 9418713
Shipping fee 2661265 5632947
Vehicle usage fee 8355362 9244459
Insurance 4418905 17698899
Office expenses 3916626 3848589
Others 37565061 31272428
Total 317702143 313754976
44、General and administrative expenses
Item 2023 2022
Employee's salary 484123255 434953745
Depreciation and amortization 189979394 114878297
Office expenses 37210330 34156691
Utility bills 8323198 6987706
Canteen fees 12373011 10448596
Travel expenses 11429040 6123944
177CSG Annual Report 2023
Rental fees 2468974 7580873
Vehicle usage fee 7027689 7592501
Social entertainment expenses 24623182 19657929
Union funds 22320175 19320629
Consulting fee 13111241 12931584
Others 52381648 44306410
Total 865371137 718938905
45、Research and Development Expenses
Item 2023 2022
Research and development expenses 739301765 644146614
46、Financial expenses
Item 2023 2022
Interest of borrowings 249878813 269234431
Less: Capitalization of interest 21719175 56510168
Interest expense 228159638 212724263
Less: Interest income 72612051 71751429
Exchange gains and losses -930640 3466699
Handling fees and others 4209158 3773449
Total 158826105 148212982
47、Other income
Item 2023 2022
Government subsidy amortization 50422500 117125948
Industry Support Fund 2821700 4843800
Government incentive funds 42923303 45036841
Scientific research funding subsidies 8354639 6629170
Tax benefits and rebates 70313326 3811340
Others 8762771 10920682
Total 183598239 188367781
48、Investment income
Item 2023 2022
Investment income during the holding period of trading financial
-27665396
assets
178CSG Annual Report 2023
Others -6610842 3902458
Total -6610842 31567854
49、Credit impairment losses (losses are listed with “—” sign)
Item 2023 2022
Bad debt losses on notes receivable -1685175
Bad debt losses on accounts receivable -18947038 -44501593
Bad debt losses on other receivables -854140 -3218514
Total -21486353 -47720107
50、Asset impairment losses (losses are listed with "-" sign)
Item 2023 2022
Inventory depreciation loss -28151374 -28315491
Impairment losses on fixed assets -251249874 -4997092
Impairment losses on projects under construction -26207751 -
Goodwill impairment loss - -122250507
Impairment losses on intangible assets -41128458
Total -346737457 -155563090
51、Asset disposal gain (losses are listed with "-" sign)
Item 2023 2022
Profit from disposal of fixed assets (losses are listed with “-”) -551072 15213059
52、Non-operating income
Amount included in
non-recurring gains
Item 2023 2022
and losses for the
current period
Caim income 748894 305439 748894
Insurance claim 3588286 9054400 3588286
Unable to pay 13792192 9954737 13792192
Others 5062035 3377696 4557807
Total 23191407 22692272 22687179
53、Non-operating Expenses
Item 2023 2022 Amount included in
179CSG Annual Report 2023
non-recurring gains
and losses for the
current period
Losses due to damage or scrapping
11361977275230411361977
of non-current assets
Donation expenditure 611914 488577 611914
Compensation expenses 493777 655574 493777
Others 953227 3170723 463363
Total 13420895 7067178 12931031
54、Income tax expenses
（1）Income tax expense details
Item 2023 2022
Current income tax calculated in accordance with tax laws and
164475016129071035
relevant regulations
Deferred income tax expense -78714213 106416724
Total 85760803 235487759
（2）The relationship between income tax expenses and total profits
Item 2023 2022
The total profit 1632195933 2278874947
Income tax expense calculated at applicable tax rate 252569882 391337658
The impact of tax rate changes on the opening deferred income
51515013912386
tax balance
Adjustments to current income taxes in prior periods -8752897 -7776520
Non-deductible costs expenses and losses 3932515 8735749
The tax impact of utilizing unrecognized deductible losses and
deductible temporary differences in previous years (filled in with -53661041 -69079756
"-")
Tax implications of unrecognized deductible losses and
832711131226
deductible temporary differences
The impact of obtaining tax incentives (fill in with "-") -114311868 -91772984
Income tax expense 85760803 235487759
55、Cash Flow Statement Item Notes
（1）Cash received related to other operating activities
Item 2023 2022
Government subsidy 114320554 77146968
180CSG Annual Report 2023
Interest income 72612051 71751429
Operating deposits and security
16627484118562038
deposits
Others 18001612 18513134
Total 371209058 185973569
（2）Cash paid related to other operating activities
Item 2023 2022
Office expenses 50699287 45107807
Canteen fees 43439068 40379269
Social entertainment expenses 50854382 38066795
Insurance 19583231 28837239
Maintenance fees 38699597 28584497
Travel expenses 35150855 19865565
Rental fees 18400558 19010554
Vehicle usage fee 17075085 18761308
Consulting fee 16742015 15645923
Bank fees 4121148 3773449
Others 119041903 110031145
Total 413807129 368063551
（3）Cash received from other investing activities
Item 2023 2022
Collect deposits and security deposits 15521326 29927321
Others 10000000 -
Total 25521326 29927321
（4）Cash paid related to significant investment activities
Item 2023 2022
Engineering project construction
42674425303416942337
expenditure
Financial investment expenses 40000000 2698160000
Total 4307442530 6115102337
181CSG Annual Report 2023
（5）Cash received from other financing activities
Item 2023 2022
Minority shareholder borrowings 12000000 -
（6）Cash paid related to financing activities
Item 2023 2022
Repay finance lease payments 45896547 46045514
Fundraising fee 562168 -
Financing deposits and guarantee deposits 100000 -
Total 46558715 46045514
182CSG Annual Report 2023
（7）Changes in various liabilities arising from financing activities
non-cash
Cash changes
Item 1 January 2023 changes 31 December 2023
Cash inflow cash outflow other
Short-term loan 345000000 431653583 339800000 436853583
Long-term borrowings (including long-term borrowings due
479680627033908383177591230137428521574
within one year)
Bonds payable (including bonds payable due within one year) 1999316522 2000000000 683478 -
Total 7141122792 3822491900 3098923013 683478 7865375157
183CSG Annual Report 2023
56、Cash Flow Statement Supplementary Information
（1）Cash Flow Statement Supplementary Information
Additional materials 2023 2022
1. Adjust net profit to cash flow from operating activities:
Net profit 1546435130 2043387188
Add: asset impairment loss 346737457 155563090
Credit impairment loss 21486353 47720107
Fixed asset depreciation 1130723018 931508062
Depreciation of right-of-use assets 1287801 2022712
Amortization of intangible assets 116953499 65785684
Amortization of long-term deferred expenses 4986063 1835784
Losses from disposal of fixed assets intangible assets and
9628136-15213059
other long-term assets (income is listed with a “-” sign)
Financial expenses (income is listed with "-") 228159638 212724263
Investment losses (income is listed with "-") -8015482 -31567854
Decrease in deferred income tax assets (increases are
-6153528293555317
indicated with "-")
Increase in deferred income tax liabilities (decreases are
-1717893112861407
indicated with "-")
Decrease in inventory (increases are listed with "-") 193552763 -713041551
Decrease in operating receivables (increases are indicated with
-1760462941-1508659625
a “-” sign)
Increase in operating payables (decreases are indicated with a
996953703650035930
“-” sign)
other 10077969 8605776
Net cash flow from operating activities 2759788894 1957123231
3. Net changes in cash and cash equivalents:
Closing balance of cash 3051261655 4594018251
Less: 1 January 2023 of cash 4594018251 2756477572
Add: Closing balance of cash equivalents
Less: Beginning balance of cash equivalents
Net increase in cash and cash equivalents - 1542756596 1837540679
（2）Net cash paid to acquire subsidiaries in the current period
Item 2023
Cash or cash equivalents paid in the current period for business mergers that
696000
occurred in the current period
Among them: Guangdong Licheng Company 696000
184CSG Annual Report 2023
Less: Cash and cash equivalents held by the company at the date of purchase -
Among them: Guangdong Licheng Company -
Add: Cash or cash equivalents paid in the current period for business combinations
-
that occurred in previous periods
Net cash paid for obtain subsidiaries 696000
（3）Composition of cash and cash equivalents
Item 31 December 2023 31 December 2022
1. Cash 3051261655 4594018251
Of which: cash on hand - -
Bank deposits available for payment at any time 3051261655 3242318251
Funds in other currencies readily available for payment - 1351700000
2. Cash equivalents - -
Including: Bond investments due within three months - -
3. Closing balance of cash and cash equivalents 3051261655 4594018251
（4）Monetary funds other than cash and cash equivalents
Reasons why it is not cash and cash
Item 31 December 2023 31 December 2022
equivalents
Other monetary The use of margin deposits etc. is
2551256310589528
fund restricted
57、Foreign currency monetary items
Ending foreign currency Conversion Ending balance converted
Item
balance exchange rate into RMB
Money funds
Of which: Hong Kong dollars 10085239 0.9062 9139244
Australian dollar 798 4.8484 3867
Dollar 4713921 7.0827 33387290
EUR 12642 7.8592 99356
JPY 6001554 0.0502 301278
Singapore dollar 25498 5.3772 137108
Accounts receivable
Of which: Hong Kong dollars 6809125 0.9062 6170429
Dollar 37268927 7.0827 263964630
EUR 834785 7.8592 6560745
Accounts payable
Of which: US dollars 3803804 7.0827 26941200
185CSG Annual Report 2023
EUR 166156 7.8592 1305853
JPY 4722510 0.0502 237070
Hong Kong dollar 60601 0.9062 54917
GBP 11000 9.0411 99452
（1）Foreign currency monetary items
VI. R & D spending
1、R & D spending
Item 2023 2022
Material 381619773 327252319
Labor costs 278856715 274026389
Fees and others 93747768 90691018
Total 754224256 691969726
Among them: expense 739301765 644146614
Capitalization 14922491 47823112
VII. Interests in other entities
1、Interests in subsidiaries
（1）The structure of a business group
Shareholding
Registered Principal place Nature of How to
Subsidiary name Registration ratio %
capital of business business obtain
direct indirect
Development
production
Chengdu CSG 260 million Chengdu and sales of
Chengdu China 75 25 set up
Company yuan China various
special
glasses
Development
production
Sichuan Energy 180 million Chengdu Survival and
Chengdu China and sales of 75 25
Saving Company yuan China separation
various
special
186CSG Annual Report 2023
glasses and
glass deep
processing
Development
production
Tianjin Energy 336 million Tianjing and sales of
Tianjing China 75 25 set up
Saving Company yuan China energy-
saving
special glass
Dongguan
240 million Dongguan Dongguan Glass deep
Engineering 75 25 set up
yuan China China processing
Company
Production
Dongguan Solar 480 million Dongguan Dongguan and sales of
75 25 set up
Energy Company yuan China China solar glass
products
Production
and sales of
Dongguan high-tech
516 million Dongguan Dongguan
Photovoltaic green battery 100 set up
yuan China China
Company products and
their
components
Production
and sales of
Yichang Silicon
1467.98 Yichang high-purity
Materials Yichang China 75 25 set up
million yuan China silicon
Company
material
products
Wujiang
320 million Wujiang Glass deep
Engineering Wujiang China 75 25 set up
yuan China processing
Company
Production
and sales of
Hebei CSG US$48.06 Yongqing
Yongqing China various 75 25 set up
Company million China
special
glasses
Production
and sales of
Wujiang CSG 565.04 million Wujiang
Wujiang China various 100 set up
Company yuan China
special
glasses
86440000
CSG (Hong Kong) China Hong China Hong investment
Hong Kong 100 set up
Co. Ltd. Kong Kong holding
dollars
Production
Xianning Float 235 million Xianning
Xianning China and sales of 75 25 set up
Co. Ltd. yuan China
special glass
Xianning Energy 215 million Xianning Glass deep Survival and
Xianning China 75 25
Saving Company yuan China processing separation
Production
Qingyuan Energy 1055 million Qingyuan and sales of
Qingyuan China 100 set up
Saving Company yuan China various ultra-
thin electronic
187CSG Annual Report 2023
glasses
Shenzhen CSG Financial
300 million Shenzhen Shenzhen
Financial Leasing leasing 75 25 set up
yuan China China
Co. Ltd. business etc.Production
and sales of
Jiangyou sand 100 million China
China Jiangyou silica sand 100 set up
mining company yuan Jiangyou
and its by-
products
Production
and sales of
Shenzhen Display 143 million Shenzhen Shenzhen
display 60.8 Buy
Company yuan China China
component
products
Production
and sales of
Zhaoqing Energy 200 million Zhaoqing
Zhaoqing China various 100 set up
Saving Company yuan China
special
glasses
Production
Zhaoqing and sales of
200 million Zhaoqing
Automobile Zhaoqing China various 100 set up
yuan China
Company special
glasses
Production
Anhui New Energy 1.75 billion Fengyang Fengyang and sales of
100 set up
Company yuan China China solar glass
products
Quartzite
Anhui Quartz Fengyang Fengyang
75 million yuan mining and 100 set up
Company China China
processing
Anhui Silicon Mineral
360 million Fengyang Fengyang
Valley Mingdu resource 60 set up
yuan China China
Mining Company mining
Production
and sales of
Xi'an Energy 150 million
Xi'an China Xi'an China various 55 45 set up
Saving Company yuan
special
glasses
Production
Guangxi New
600 million Beihai and sales of
Energy Materials Beihai China 75 25 set up
yuan China solar glass
Company
products
188CSG Annual Report 2023
2、Business combination not under common control
（1）Business mergers not involving enterprises under common control that occurred during the current
period
The cash
Net profit
Income of flow of
of the
the the
Basis purchase
purchased purchase
Equity for d party
Equity Equity Equity party from d party
Purchased acquisitio Purchas determi from the
acquisitio acquisitio acquisitio the date of from the
party name n ratio e date ning date of
n time n cost n method purchase purchase
(%) purchas purchase
to the end date to
e date to the end
of the the end
of the
period of the
period
period
Guangdong
March 21 cash March actual
Licheng 696000 100 3356743 -1080540 29864
2023 purchase 21 2023 control
Company
（2）Merger costs and goodwill
Guangdong Licheng
Item
Company
Combined cost:
Cash 696000
Total 696000
Less: Share of fair value of identifiable net assets acquired -
The amount by which goodwill/merger cost is less than the fair value share of identifiable net
696000
assets acquired
（3）The identifiable assets and liabilities of the purchased party on the purchase date
Guangdong Licheng Company
Item
Fair value on purchase date Book value on purchase date
Net assets acquired from merger - -
3、Other Changes in the Scope of Consolidation
(1) On April 24 2023 this group established Guangxi CSG Mining Co. Ltd. (hereinafter referred to as
"Guangxi Mining Company"). As of December 31 2023 this group has contributed RMB 50 million
holding 100% of its shares.
(2) On April 26 2023 this group established CSG Japan Co. Ltd. (hereinafter referred to as "CSG Japan").
As of December 31 2023 this group has contributed 6 million Japanese yen holding 100% of its shares.
(3) On May 19 2023 this group established Wuxuan Nanxin Mining Co. Ltd. (hereinafter referred to as
189CSG Annual Report 2023
"Wuxuan Mining Company"). As of December 31 2023 this group has contributed RMB 6 million holding
60% of its shares.
(4) On October 18 2023 this group established Qinghai CSG Photovoltaic Technology Co. Ltd.
(hereinafter referred to as "Qinghai Photovoltaic Company"). As of December 31 2023 this group has
not contributed funds holding 100% of its shares.
(5) On December 8 2023 this group established Jiangyou City CSG Quartz Sand Co. Ltd. (hereinafter
referred to as "Jiangyou Quartz Company"). As of December 31 2023 this group has not contributed
funds holding 100% of its shares.VIII. Government grants
1、Government subsidies included in deferred income
（1）Government subsidies included in deferred income are subsequently measured using the gross
method.The
amount Presentation
carried items carried
New
forward forward and
subsidy 31 Asset
1 January and Other included in
Item amount December related/income
2023 included in changes profit and
for this 2023 related
profit and loss in the
period
loss in the current
current period
period
Group Talent related to
171000000171000000
Fund Project income
Other subsidy Related to
278875380 30690950 50422500 259143830 Other income
projects assets/income
Total 449875380 30690950 50422500 - 430143830
2、Government subsidies included in current profits and losses using the gross method
Amount included Amount included
Asset
in profit and loss in profit and loss Items presented in
Subsidy item type related/income
in the previous for the current profit or loss
related
period period
Government Financial
71241833 66216291 Other income Related to income
gtant allocation
3、Government subsidies using the net method to offset related costs
The amount of The amount of Items for Asset
Subsidy item type
relevant costs relevant costs presentation of related/income
190CSG Annual Report 2023
offset in the offset in the write-down related
previous period current period related costs
Fiscal interest Financial Financial
2125915 3711633 Related to income
discount allocation expenses
IX. Financial Instrument Risk Management
The Group's main financial instruments include monetary funds notes receivable accounts receivable
receivable financing other receivables non-current assets due within one year other current assets
notes payable accounts payable Other payables short-term borrowings trading financial liabilities non-
current liabilities due within one year long-term borrowings bonds payable lease liabilities and long-
term payables. Details of each financial instrument have been disclosed in the relevant notes. The risks
associated with these financial instruments and the risk management policies adopted by the Group to
mitigate these risks are described below. The management of the Group manages and monitors these
risk exposures to ensure that the above risks are controlled within limited limits.
1、Risk management objectives and policies
The main risks caused by the Group's financial instruments are credit risk liquidity risk and market risk
(including exchange rate risk interest rate risk and commodity price risk).The Group's overall risk management plan addresses the unpredictability of financial markets and strives
to reduce potential adverse effects on the Group's financial performance.The Group has formulated risk management policies to identify and analyze the risks faced by the Group
set appropriate risk acceptance levels and design corresponding internal control procedures to monitor
the Group's risk levels. The Group will regularly reassess these risk management policies and related
internal control systems to adapt to changes in market conditions or the Group's operating activities. The
internal audit department also regularly and irregularly checks whether the implementation of the internal
control system complies with the risk management policy.The Board of Directors is responsible for planning and establishing the Group's risk management structure
formulating the Group's risk management policies and relevant guidelines and supervising the
implementation of risk management measures. The Group has formulated risk management policies to
identify and analyze the risks faced by the Group. These risk management policies clearly define specific
risks and cover many aspects such as market risk credit risk and liquidity risk management. The Group
regularly assesses changes in the market environment and the Group's operating activities to determine
whether to update risk management policies and systems. The Group's risk management is carried out
by relevant departments in accordance with policies approved by the Board of Directors. These
departments identify evaluate and avoid relevant risks through close cooperation with other business
departments of the Group.The Group diversifies financial instrument risks through appropriate diversification of investments and
business portfolios and reduces risks concentrated in a single industry specific region or specific
counterparty by formulating corresponding risk management policies.
191CSG Annual Report 2023
（1）Credit risk
Credit risk refers to the risk that the counterparty fails to perform its contractual obligations resulting in
financial losses to the Group.The Group manages credit risks by portfolio classification. Credit risk mainly arises from bank deposits
bills receivable accounts receivable other receivables etc.The Group's bank deposits are mainly deposited in state-owned banks and other large and medium-sized
listed banks. The Group expects that there will be no significant credit risk in bank deposits.For notes receivable accounts receivable other receivables and long-term receivables the Group sets
relevant policies to control credit risk exposure. The Group evaluates the customer's credit qualifications
and sets corresponding credit periods based on the customer's financial status credit history and other
factors such as current market conditions. The Group will regularly monitor customer credit records. For
customers with poor credit records the Group will use written reminders shorten the credit period or
cancel the credit period to ensure that the Group's overall credit risk is within a controllable range. .The debtors of the Group's accounts receivable are customers located in different industries and regions.The Group continues to conduct credit assessments on the financial status of accounts receivable and
purchases credit guarantee insurance when appropriate.The Group's maximum exposure to credit risk is the carrying amount of each financial asset on the
balance sheet. The Group does not provide any other guarantees that may expose the Group to credit
risk. Among the Group's accounts receivable those from the top five customers(mainly photovoltaic glass
customers) accounted for 39% of the Group's total accounts receivable (2022: 34%).These customers
are all industry leaders with good credit thus reducing the risk of accounts receivable recovery for this
group. Among the Group's other receivables those from the top five companies in terms of arrears Other
receivables account for 87% of the Group's total other receivables (2022: 87%).
（2）Liquidity risk
Liquidity risk refers to the risk that the Group encounters a shortage of funds when fulfilling its obligations
to settle by delivering cash or other financial assets.When managing liquidity risk the Group maintains and monitors cash and cash equivalents that
management considers sufficient to meet the Group's operating needs and reduce the impact of cash
flow fluctuations. The management of the Group monitors the use of bank borrowings and ensures
compliance with borrowing agreements. At the same time obtain commitments from major financial
institutions to provide sufficient backup funds to meet short-term and long-term funding needs.At the end of the period the financial liabilities and off-balance sheet guarantee items held by the Group
are analyzed based on the maturity period of the undiscounted remaining contract cash flows as follows
(unit: yuan):
Item 31 December 2023
192CSG Annual Report 2023
one to two two to five More than five
Within a year Total
years years years
Financial liabilities:
Short-term loan 442145185 - - - 442145185
Notes payable 2041353189 - - - 2041353189
Accounts payable 3341624602 - - - 3341624602
Other payables 484741877 - - - 484741877
Non-current liabilities due
1271501008---1271501008
within one year
Other current liabilities 454332686 - - - 454332686
Long term loan 214670100 1941153526 3246286160 1584820574 6986930360
Lease liability 1128760 3705792 10300010 15134562
Long-term payables - 42003985 46200178 - 88204163
Total financial liabilities
825036864719842862713296192130159512058415125967632
and contingent liabilities
At the end of last year the financial liabilities and off-balance sheet guarantee items held by the Group
were analyzed based on the maturity period of the undiscounted remaining contract cash flows as follows
(unit: yuan):
Balance at the end of the previous year
Item one to two two to five More than five
Within a year Total
years years years
Financial liabilities:
Short-term loan 350149308 - - - 350149308
Notes payable 994557496 - - - 994557496
Accounts payable 2033542627 - - - 2033542627
Other payables 537065184 - - - 537065184
Other current liabilities 50407240 - - - 50407240
Non-current liabilities due
2493836975---2493836975
within one year
Long-term payables - 40906147 88330731 - 129236878
Long term loan 159922694 1158108565 2569845854 1040196665 4928073778
Total financial liabilities
661948152411990147122658176585104019666511516869486
and contingent liabilities
The amounts of financial liabilities disclosed in the table above represent undiscounted contractual cash
flows and therefore may differ from the carrying amounts in the balance sheet.
（3）Market risk
Market risk of financial instruments refers to the risk that the fair value or future cash flows of financial
instruments fluctuate due to market price changes including interest rate risk exchange rate risk and
other price risks.
193CSG Annual Report 2023
Interest Rate Risk
Interest rate risk refers to the risk that the fair value or future cash flows of financial instruments will
fluctuate due to changes in market interest rates. Interest rate risk can arise from both recognized interest-
bearing financial instruments and unrecognized financial instruments (such as certain loan commitments).The Group's interest rate risk mainly arises from long-term interest-bearing debt such as long-term bank
borrowings and bonds payable. Financial liabilities with floating interest rates expose the Group to cash
flow interest rate risk while financial liabilities with fixed interest rates expose the Group to fair value
interest rate risk. The Group determines the relative proportions of fixed-rate and floating-rate contracts
based on the prevailing market environment and maintains an appropriate mix of fixed-rate and floating-
rate instruments through regular review and monitoring.The Group pays close attention to the impact of interest rate changes on the Group's interest rate risk.The Group currently does not adopt an interest rate hedging policy. However management is responsible
for monitoring interest rate risk and will consider hedging significant interest rate risk if necessary. An
increase in interest rates will increase the cost of new interest-bearing debt and the interest expense of
the Group's unpaid interest-bearing debt with floating interest rates and will have a significant adverse
impact on the Group's financial results. The management will base on the latest market trends
Adjustments are made in a timely manner to the situation and these adjustments may be through interest
rate swap arrangements to reduce interest rate risk.The interest-bearing financial instruments held by the Group are as follows (unit: yuan):
Item 31 December 2023 31 December 2022
Fixed rate contract 1123875582 487260925
Floating rate contract 5097773094 3866329055
Total 6221648676 4353589980
For financial instruments held on the balance sheet date that expose the Group to fair value interest rate
risk the impact on net profit and shareholders' equity in the above sensitivity analysis is based on the
assumption that interest rates change on the balance sheet date. The impact of remeasurement of
financial instruments. For floating rate non-derivative instruments held on the balance sheet date that
expose the Group to cash flow interest rate risk the impact on net profit and shareholders' equity in the
above sensitivity analysis is the impact of the above interest rate changes on the annual estimated interest
expense or income. Impact. The previous year's analysis was based on the same assumptions and
methodology.Exchange rate risk
Exchange rate risk refers to the risk that the fair value or future cash flows of financial instruments will
fluctuate due to changes in foreign exchange rates. Exchange rate risk can arise from financial
instruments denominated in foreign currencies other than the functional currency of accounting.Exchange rate risk is mainly due to the impact of the Group's financial position and cash flows on foreign
exchange rate fluctuations. Except for the subsidiaries established in Hong Kong that hold assets settled
in Hong Kong dollars the proportion of foreign currency assets and liabilities held by the Group to the
194CSG Annual Report 2023
overall assets and liabilities is not significant. Therefore the Group believes that the exchange rate risk it
faces is not significant.At the end of the period the amounts of foreign currency financial assets and foreign currency financial
liabilities held by the Group converted into RMB are listed as follows (unit: RMB ) :
Foreign currency liabilities Foreign currency assets
Item 31 December
31 December 2023 31 December 2022 31 December 2023
2022
Dollar 26941200 28189789 297351920 160036914
Hong Kong dollar 54917 234966 15309673 8248133
Others 1642375 4483784 7102354 6409553
Total 28638492 32908539 319763947 174694600
The Group pays close attention to the impact of exchange rate changes on the Group's exchange rate
risk. Management is responsible for monitoring exchange rate risk and will consider hedging significant
exchange rate risk if necessary.As of December 31 2023 for the Group's various U.S. dollar financial assets and U.S. dollar financial
liabilities if the RMB appreciates or depreciates by 10% against the U.S. dollar and other factors remain
unchanged the Group's net profit will decrease or increase by approximately RMB 22984911.
(December 31 2022: decrease or increase of approximately RMB 11207006).
2、Capital management
The goal of the Group's capital management policy is to ensure that the Group can continue to operate
thereby providing returns to shareholders and benefiting other stakeholders while maintaining an optimal
capital structure to reduce capital costs.In order to maintain or adjust the capital structure the Group may adjust financing methods adjust the
amount of dividends paid to shareholders return capital to shareholders issue new shares and other
equity instruments or sell assets to reduce debt.The Group monitors the capital structure based on the asset-liability ratio (i.e. total liabilities divided by
total assets). At the end of the period the Group's asset-liability ratio was 52% (end of the previous year :
48%).
X. Fair value
According to the lowest level input value that is of great significance to the overall measurement in fair
value measurement the fair value hierarchy can be divided into:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.
195CSG Annual Report 2023
Level 2: The use of observable inputs other than quoted market prices for the asset or liability in Level
1 either directly (i.e. as prices) or indirectly (i.e. as derived from prices).
Level 3: The asset or liability uses any input value that is not based on observable market data
(unobservable input value).
（1）Items and amounts measured at fair value
At the end of the period assets and liabilities measured at fair value are listed as follows according to
the above three levels:
Level 1 fair value Level 2 fair value Level 3 fair value
Item Total
measurement measurement measurement
1. Continuous fair value
measurement
(1) Accounts receivable financing - - 529945623 529945623
(2) Investment real estate 290368105 290368105
During the year there was no conversion between Level 1 and Level 2 in the fair value measurement of
the Group's financial assets and financial liabilities nor was there any transfer into or out of Level 3.For financial instruments traded in active markets the Group determines its fair value based on active
market quotes; for financial instruments not traded in active markets the Group uses valuation
techniques to determine its fair value. The valuation models used are mainly discounted cash flow
models and market comparable company models. The input values of valuation technology mainly
include risk-free interest rates benchmark interest rates exchange rates credit spreads liquidity
premiums lack of liquidity discounts etc.
（2）Information related to Level 2 fair value measurement
Valuation
Content Closing fair value Input value
techniques
Investment real estate:
Building area of real estate
Industrial commercial residential office Demarcated land for various purposes
290368105
real estate value method market unit price of real
estate for various purposes
（3）Quantitative information on significant unobservable inputs used in Level 3 fair value
measurements
Closing fair Valuation unobservable input Range (weighted
Content
value techniques value average)
Equity instrument
investment:
Income approach Volatility Counterparty
Receivables Financing 529945623 0%-2%
(option pricing Credit Risk Own Credit
196CSG Annual Report 2023
model) Risk
XI. Related parties and related transactions
1、Information about the parent company of the Group
The Group has no parent company.The Group has no ultimate actual controlling party
2、Information about the Group’s subsidiaries
For details of subsidiaries please see Note.
3、Information on the Group’s joint ventures and associates
The Group has no joint ventures or associates.
4、Other related parties information
Name of Other Related Party Relationship with the Group
Qianhai Life Insurance Co. Ltd. The largest shareholder of the company
Shantou Chaoshang Urban Comprehensive Related parties of the company's largest shareholder of taking
Management Co. Ltd concerted action
Shenzhen City Special Construction Engineering Co. Related parties of the company's largest shareholder of taking
Ltd. concerted action
Related parties of the company's largest shareholder of taking
Shenzhen Hongtu Construction Co. Ltd.concerted action
Related parties of the company's largest shareholder of taking
Shen Zhen Golden Flourish Supply Chain Limited
concerted action
Related parties of the company's largest shareholder of taking
Shenzhen Baoneng Auto Sales & Service Co. Ltd.concerted action
5、Related party transactions
（1）Purchase and sales of goods and rendering and receiving services
1 Purchasing goods and receiving services
Related transaction
Related party 2023 2022
content
Qianhai Life Insurance Co. Ltd. Receive service 7471481 7272709
197CSG Annual Report 2023
Purchase goods and receive
Other related parties 194206
services
Total 7471481 7466915
Note: The Group conducts commodity transactions with related parties based on market prices.
2 Selling goods and providing services
Related
Related party 2023 2022
transaction
Shantou Chaoshang Urban
Sales of goods 599745 1397807
Comprehensive Management Co. Ltd
Shenzhen City Special Construction
Sales of goods 3502191 -
Engineering Co. Ltd.Other related parties Sales of goods 424523 60280
Total 4526459 1458087
Note: The Group conducts commodity transactions with related parties based on market prices.
（2）Key management personnel compensation
Item 2023 2022
Remuneration 18280500 25776400
6、Accounts receivable and payable from related parties
（1）Amounts receivable from related parties
31 December 2023 31 December 2022
Item Related party Provision Provision for Carrying
Carrying Amount for bad
bad debts Amount
debts
Accounts Shenzhen Hongtu
86523567382793
receivable Construction Co. Ltd.Accounts Shen Zhen Golden Flourish
2209020986
receivable Supply Chain Limited
Qianhai Life Insurance Co.Prepayments 4441 572995
Ltd.Other
Other related parties 36000 720
receivables
Total 8678887 7403779 608995 720
198CSG Annual Report 2023
（2）Amounts payable to related parties
Item Related party 31 December 2023 31 December 2022
Accounts payable Suzhou Baoqi Logistics Co. Ltd 314667 314667
Other payables Qianhai Life Insurance Co. Ltd. 386589 6647
Contract liabilities Other related parties 504538 319642
Total 1205794 640956
XII. COMMITMENTS AND CONTINGENCIESs
1、Significant commitments
（1）Capital commitments
Capital commitments that have been contracted but not
31 December 2023 31 December 2022
yet recognized in the financial statements
Commitment to purchase and construct long-term assets 3010778541 3060099197
（2）Other commitments
As of December 31 2023 the Group has no other commitments that should be disclosed.
2、Contingencies
（1）Contingent liabilities arising from pending litigation and arbitration and their financial impact
Court of Target
Plaintiff Defendant Cause of action Case progress
acceptance amount
Zeng Nan Luo Youming Disputes over Shenzhen
Our company (Note Wu Guobin Ding Jiuru Li liability for Intermediate
229200087 Under trial
1) Weinan Yichang Hongtai harming company People's
Real Estate Co. Ltd. interests Hospital
Fengyang
Fengyang
Wenyang Building Anhui CSG New Energy Disputes over
County
and Decoration Materials Technology Co. creditor's 17349467 Under trial
People's
Materials Co. Ltd. Ltd. subrogation rights
Court
(Note 2)
171 million yuan in subsidy funds given to the group by the plaintiff government and the loss of interest
of 58.2 million yuan. As of the announcement date of this report the case is under trial.
199CSG Annual Report 2023
Note 2: The plaintiff sued Anhui New Energy for subrogation to bear the delayed payment and interest on
the grounds that the concrete from Hefei Construction Materials and Equipment Co. Ltd. was used in the
civil construction project of the defendant Anhui New Energy. As of the announcement date of this report
the case is under trial. The Company has confirmed all accounts payable with relevant payment
obligations.XIII. Post-balance sheet events
1、Profit distribution after the balance sheet date
Profit or dividend to be distributed Annual cash dividend of RMB 2.5 per 10 shares
Profits or dividends declared and distributed upon review
767673027
and approval
Note: The above profit distribution plan has been reviewed and approved by the company's board of
directors and still needs to be submitted to the company's shareholders' meeting for approval.XIV. Notes on main items of the parent company’s financial statements
1、Accounts receivable
（1）Disclosure by age
Aging 31 December 2023 31 December 2022
Within 1 year 240038959 24484628
Less: provision for bad debts - 489692
Total 240038959 23994936
（2）Classified disclosure according to bad debt accrual method
31 December 2023
Category Carrying Amount Provision for bad debts
Expected credit loss Book value
Amount Proportion(%) Amount
rate (%)
Provision for bad debts
240038959100--240038959
on a portfolio basis
200CSG Annual Report 2023
Continued:
31 December 2022
Category Carrying Amount Provision for bad debts
Expected credit loss Book value
Amount Proportion(%) Amount
rate (%)
Provision for bad
debts on a portfolio 24484628 100 489692 2 23994936
basis
Item 31 December 2023 31 December 2022
Dividends receivable 126870800 375057800
Other receivables 2030231679 1994373982
Total 2157102479 2369431782
2、Other receivables
（1）Dividends receivable
Item (or invested unit) 31 December 2023 31 December 2022
Dividends receivable from subsidiaries 126870800 375057800
Total 126870800 375057800
（2）Other receivables
4 Disclosure by age
Aging 31 December 2023 31 December 2022
Within 1 year (including 1 year) 1753727543 1874539007
1 to 2 years 156829201 36000
2 to 3 years 36000 -
Over 3 years 171057770 171181656
Total 2081650514 2045756663
Provision for bad debts 51418835 51382681
Total 2030231679 1994373982
5 Disclosure by nature of payment
31 December 2023 31 December 2022
Item Provision Carrying Provision for bad Carrying
Book value for bad Book value
Amount debts Amount
debts
Amounts
1908899993-19088999931870622635-1870622635
receivable
201CSG Annual Report 2023
from
related
parties
Others 172750521 51418835 121331686 175134028 51382681 123751347
Total 2081650514 51418835 2030231679 2045756663 51382681 1994373982
6 Bad debt provisions accrued recovered or reversed in the current period
Stage 1 Stage 2 Stage 3
Provision for bad Expected credit losses Expected credit losses Expected credit
debts throughout the entire throughout the lifetime
Total
losses over the
duration (no credit (credit impairment has
next 12 months
impairment has occurred) occurred)
Amount on 1st
826815130000051382681
January 2023
Carrying amount on
1st January 2023
that in this period:
Accrual in the current
3615436154
year
Amount on 31st
1188355130000051418835
December 2023
7 The top five companies with closing balances of other receivables collected by debtors
Proportion to the Provision for bad
Other receivables
Nature of total closing balance debts
Company name Aging
payment of other receivables 31 December
31 December 2023
(%)2023
Advance
Company A 544019156 Within 1 year 26
payment
Advance
Company B 246498101 Within 1 year 12
payment
More than 5
Company C Other 171000000 8 51300000
years
Advance
Company D 147173182 Within 1 year 7
payment
Advance
Company E 146072111 Within 2 years 7
payment
Total 1254762550 60 51300000
3、Long-term equity investments
31 December 2023 31 December 2022
Item Carrying Provision for Carrying Provision for
Book value Book value
amount impairment amount impairment
Investment in
98215337691500000098065337697853487027150000007838487027
subsidiaries
Total 9821533769 15000000 9806533769 7853487027 15000000 7838487027
202CSG Annual Report 2023
(1) Investment in subsidiaries
Provision
for Closing
Decrease
1 January Increased in 31 December impairment balance of
Investee in this
2023 this issue 2023 in the impairment
period
current provision
period
Chengdu CSG Company 151397763 151397763
Sichuan Energy Saving
119256949119256949
Company
Tianjin Energy Saving
247833327247833327
Company
Dongguan Engineering
19827624224000001222276243
Company
Dongguan Solar Energy
355120247355120247
Company
Dongguan Photovoltaic
38211218350000000432112183
Company
Yichang Silicon Materials
909960170909960170
Company
Wujiang Engineering
254401190254401190
Company
Hebei CSG Company 266189705 266189705
CSG (Hong Kong) Co. Ltd. 87767304 87767304
Wujiang CSG Company 567645430 567645430
Jiangyou CSG Mining
102415096102415096
Development Co. Ltd.Xianning Float Co. Ltd. 181116277 181116277
Xianning Energy Saving
165452035165452035
Company
Qingyuan Energy Saving
885273105885273105
Company
Shenzhen CSG Financial
133500000133500000
Leasing Co. Ltd.Shenzhen Display Device
550765474550765474
Company
Zhaoqing Energy Saving
15000000050000000200000000
Company
Zhaoqing CSG Automotive
11604733343911741159959074
Glass Co. Ltd.Anhui New Energy
13000000002500000001550000000
Company
Anhui Quartz Company 75000000 75000000
Anhui CSG Silicon Valley
Mingdu Mining 120000000 96000000 216000000
Development Co. Ltd.Xi'an Energy Saving
413650004113500082500000
Company
Guangxi New Energy
57000000170000000227000000
Materials Company
203CSG Annual Report 2023
CSG (Suzhou) Corporate
Headquarters Management 30000000 30000000
Co. Ltd.Shenzhen CSG Quartz
Materials Industrial Co. 3000000 37000000 40000000
Ltd.Shenzhen CSG New
Energy Industry 120000000 1230000000 1350000000
Development Co. Ltd.Others 267592197 1 24000001 243592197 15000000
Total 7838487027 1992046743 24000001 9806533769 - 15000000
4、Operating income and operating costs
20232022
Item
Revenue Cost Revenue Cost
Principal operation 2599280 - 2232800 -
Other operations 396903690 - 371474846 -
Total 399502970 - 373707646 -
5、Investment income
Item 2023 2022
Investment income from long-term equity accounted for by the
cost method 1680533152 841070857
Investment income during the holding period of financial assets
-27665396
at fair value
Others 3106870 3902458
Total 1683640022 872638711
204CSG Annual Report 2023
XV. Other important matters
1、Segment reporting
Based on the Group's internal organizational structure management requirements and internal reporting system the Group's operating business is divided into
four reporting segments. These reporting segments are determined based on the financial information required by the company for daily internal management.The Group's management regularly evaluates the operating results of these reportable segments to determine the allocation of resources to them and evaluate
their performance.The Group's reportable segments include:
-The Glass Division is responsible for the production and sales of float glass photovoltaic glass products engineering glass products and silica sand required for
the production of related glass.-The Electronic Glass and Display device Division is responsible for the production and sales of display components and special ultra-thin glass products.-The Solar Energy and Others segment is responsible for the production and sales of polysilicon and solar cell module products photovoltaic energy development
and other products.-Other unallocated divisions.Segment reporting information is disclosed based on the accounting policies and measurement standards adopted by each segment when reporting to
management. These accounting policies and measurement basis are consistent with those used when preparing financial statements.
205CSG Annual Report 2023
（1）Segment profit or loss assets and liabilities
This period or the end Electronic glass and di Solar energy and other Inter-segment
Glass industry Unallocated amount Total
of this period splay device industries elimination
External transaction
1457196772414392122302180787397289701518194864366
income
Inter-segment
11358956013343000667534255397276839-711830660
transaction income
Interest expense 124392065 6449011 2251713 95066849 228159638
Depreciation and
858676426241304733131434481225347411253950381
amortization
The total profit 1536505236 - 259703377 292873265 62520809 1632195933
Total assets 17879556268 3271543296 6244315346 2966642402 30362057312
Total liabilities 9739294245 694438760 2275626502 3115991636 15825351143
Increase in non-current
335654712793647705285480350886226366313620976
assets
Last period or last Electronic glass and displ Solar energy and other Inter-segment
Glass industry Unallocated amount Total
period end ay device industries elimination
External transaction
989400286314705879323831603860251234315198706998
income
Inter-segment transaction
16273639317249589956978902371837218-764048412-
income
Interest expense 26741659 7271418 383249 178327937 212724263
Depreciation and
61367720023080419615000309966677471001152242
amortization
The total profit 1162517806 185946481 1072267930 -141857270 2278874947
206CSG Annual Report 2023
Total assets 14816107672 3657683773 3839214143 3591007718 25904013306
Total liabilities 6870531882 700657854 554483116 4402669151 12528342003
Increase in non-current
337750858430933949830753102983745054002753616
assets
207CSG Annual Report 2023
XVI. Additional materials
1、Detailed statement of non-recurring profits and losses for the current period
Amount incurred
Item Illustrate
this period
Gains and losses on disposal of non-current assets including the
-9628136
write-off portion of asset impairment provisions
Government subsidies included in the current profit and loss except
for government subsidies that are closely related to the company's
normal business operations comply with national policies and 118358356
regulations are enjoyed in accordance with determined standards
and have a lasting impact on the company's profits and losses.In addition to the effective hedging business related to the company's
normal operating business non-financial enterprises' gains and
losses from changes in fair value arising from holding financial assets 3106870
and financial liabilities and gains and losses arising from the disposal
of financial assets and financial liabilities
Reversal of impairment provision for accounts receivable that has
8757040
been individually tested for impairment
Debt restructuring gains and losses 4908612
Other non-operating income and expenses other than the above 18833212
Total non-recurring gains and losses 144335954
Less: Income tax impact on non-recurring gains and losses 21244208
Net non-recurring gains and losses 123091746
Less: Net impact of non-recurring gains and losses attributable to
3336083
minority shareholders (after tax)
Non-recurring gains and losses attributable to the company’s
119755663
ordinary shareholders
2、ROE and earnings per share
Earnings per share
Weighted average
Profit during the reporting period
return on equity % Basic earnings per Diluted earnings
share per share
Net profit attributable to the company’s
12.300.540.54
ordinary shareholders
Net profit attributable to the company's
ordinary shareholders after deducting non- 11.41 0.50 0.50
recurring gains and losses
Board of Directors of
CSG Holding Co. Ltd.
26 April 2024
208
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