CSG HOLDING CO., LTD.
SEMI-ANNUAL REPORT 2024
Chairman of the Board:
CHEN LIN
August 2024
Section I. Important Notice, Content and ParaphraseBoard of Directors and the Supervisory Committee of CSG Holding Co., Ltd. (hereinafter referredto as the Company) and its directors, supervisors and senior executives hereby confirm that thereare no any fictitious statements, misleading statements, or important omissions carried in this report,and shall take all responsibilities, individual and/or joint, for the facticity, accuracy andcompleteness of the whole contents.Ms. Chen Lin, person in charge of the Company, Ms. Wang Wenxin, responsible person in charge ofaccounting and Ms. Wang Wenxin, principal of the financial department (accounting officer)confirm that the Financial Report enclosed in the semi-annual report of the Company is true,accurate and complete.All directors were present at the meeting of the Board for deliberating the semi-annual report of theCompany in person.The future plans and other forward-looking statements mentioned in this report do not constitute amaterial commitment of the Company to investors. Investors and relevant parties should payattention to investment risks, and understand the differences between plans, forecasts andcommitments.The Company has described the risk factors and countermeasures of the Company's futuredevelopment in detail in this report. Please refer to Section III. Management Discussion andAnalysis.The Company is required to comply with the disclosure requirements of "Non-metallic BuildingMaterials Related Business" in the "Self-regulatory Guidelines for Listed Companies on theShenzhen Stock Exchange No. 3- Industry Information Disclosure (Revised in 2023)".The Company has no plans of cash dividend distribution, bonus shares being sent or convertingcapital reserve into share capital.This report is prepared both in Chinese and English. Should there be any inconsistency between theChinese and English versions, the Chinese version shall prevail.
Content
Section I. Important Notice, Content and Paraphrase ......................................................................... 1
Section II. Company Profile & Financial Highlights .......................................................................... 5
Section III. Management Discussion and Analysis ............................................................................. 8
Section IV. Corporate Governance ...................................................................................................... 26
Section V. Environment and Social Responsibility ............................................................................. 27
Section VI. Important Events .............................................................................................................. 34
Section VII. Changes in Shares and Particulars about Shareholders .................................................. 56
Section VIII. Preferred Shares ............................................................................................................ 60
Section IX. Bonds ............................................................................................................................... 60
Section X. Financial Report ................................................................................................................ 61
Documents available for Reference
I. Text of the financial report carrying the signatures and seals of the person in charge of theCompany, the responsible person in charge of accounting and the principal of the financialdepartment (accounting officer).II. All texts of the Company’s documents and original public notices disclosed in the papersappointed by CSRC in the report period.
Paraphrase
| Item | Refers to | Content |
| Company, the Company, CSG Group, CSG, Group or the Group | Refers to | CSG Holding Co., Ltd. |
| Foresea Life | Refers to | Foresea Life Insurance Co., Ltd. |
| Ultra-thin electronic glass | Refers to | The electronic glass with thickness between 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 |
| Ice Kirin | Refers to | CSG’s brand for multi-silver high-performance energy-saving glass |
| BIPV | Refers to | Building Integrated Photovoltaic |
Section II. Company Profile & Financial HighlightsI. Company Profile
| 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 Company | 中国南玻集团股份有限公司 | ||
| Abbr. of legal Chinese name of the Company | 南玻集团 | ||
| Legal English name of the Company | CSG Holding Co., Ltd. | ||
| Abbr. of legal English name of the Company | CSG | ||
| Legal Representative | Chen Lin | ||
II. Person/Way to contact
| Secretary of the Board | Representative of securities affairs | |
| Name | Chen Chunyan | Xu Lei |
| Contact address | CSG Building, No.1 of the 6th Industrial Road, Shekou, Shenzhen, P. R.C. | CSG Building, No.1 of the 6th Industrial Road, Shekou, Shenzhen, P. R.C. |
| Tel. | (86)755-26860666 | (86)755-26860666 |
| Fax. | (86)755-26860685 | (86)755-26860685 |
| securities@csgholding.com | securities@csgholding.com |
III. Other information
1. Way of contact
Whether registered address, office address and their postal codes, website address and email address of the Company changed inthe report period or not
□ Applicable √Not applicable
The registered address, office address and their postal codes, website address and email address of the Company did not change inthe report period. More details can be found in Annual Report 2023.
2. Information disclosure and preparation place
Whether information disclosure and preparation place changed in the report period or not
□Applicable √ Not applicable
The newspapers designated by the Company for information disclosure, the website designated by CSRC for disclosing semi-annual report and preparation place of semi-annual report did not change in the report period. More details can be found in AnnualReport 2023.
3. Other relevant information
Whether other relevant information changed in the report period or not
□Applicable √ Not applicable
IV. Main accounting data and financial indexesWhether it has retroactive adjustment or re-statement on previous accounting data
□Yes √No
| The report period (Jan. to Jun.2024) | The same period of last year | Increase/decrease year-on-year | |
| Operating income (RMB) | 8,078,970,651 | 8,389,340,245 | -3.70% |
| Net profit attributable to shareholders of the listed company (RMB) | 733,111,562 | 889,478,780 | -17.58% |
| Net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses (RMB) | 672,901,192 | 838,238,768 | -19.72% |
| Net cash flow arising from operating activities (RMB) | 993,284,145 | 518,427,185 | 91.60% |
| Basic earnings per share (RMB/Share) | 0.24 | 0.29 | -17.24% |
| Diluted earnings per share (RMB/Share) | 0.24 | 0.29 | -17.24% |
| Weighted average ROE | 5.08% | 6.69% | -1.61% |
| End of this period | End of last year | Increase/decrease in this period-end over that of last year-end | |
| Total assets (RMB) | 32,268,955,506 | 30,362,057,312 | 6.28% |
| Net assets attributable to shareholders of the listed company (RMB) | 14,019,448,902 | 14,050,840,217 | -0.22% |
V. Difference of accounting data under domestic and overseas accounting standards
1. Differences of the net profit and net assets disclosed in financial report prepared under internationaland Chinese accounting standards
□ Applicable √ Not applicable
No such differences in the report period.
2. Difference of the net profit and net assets disclosed in financial report prepared under overseas andChinese accounting standards
□ Applicable √ Not applicable
No such differences in the report period.
VI. Items and amounts of non-recurring gains and losses
√ Applicable □ Not applicable
Unit: RMB
| Item | Amount | Note |
| Gains/losses from the disposal of non-current asset (including the write-off that accrued for impairment of assets) | 4,202,074 | |
| Government subsidies included in the profit and loss of the current period (except government subsidies that closely related to the normal operation of the company, in line with national policies and provisions, in accordance with the defined standards, and have a continuous impact on the profit and loss of the company) | 58,517,357 | |
| In addition to the effective hedging business related to the normal operation of the company, the profit or loss of fair value changes arising from the holding of financial assets and financial liabilities by non-financial enterprises and the loss or gain arising from the disposal of financial assets and financial liabilities and available for sale financial assets | 924,109 | |
| Reversal of provision for impairment of receivables that have been individually tested for impairment | 6,819,779 | |
| Profit and loss from debt restructuring | 569,142 | |
| Other non-operating income and expenditure except for the aforementioned items | 1,748,299 | |
| Less: Impact on income tax | 11,058,108 | |
| Impact on minority shareholders’ equity (post-tax) | 1,512,282 | |
| Total | 60,210,370 |
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 forCompanies 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 Disclosureof Companies Offering Securities to the Public - Non-recurring Profit and Loss" were defined as recurring profit and loss items inthe report period.
Section III. Management Discussion and AnalysisI. Main business of the Company during the report period(I)Main business of the CompanyCSG is a leading domestic brand of energy-saving glass and a renowned brand of solar PV products and display devices. Itsproducts 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-thinelectronic glass and display devices, as well as renewable energy products such as silicon materials, photovoltaic cells andmodules, and it provides one-stop services for photovoltaic power station project development, construction, operation andmaintenance, 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 materialsfor the Company's glass production.Photovoltaic glass businessCSG entered the photovoltaic glass manufacturing industry in 2005. As one of the earliest enterprises engaged in manufacturing inthis field in China, the Company is based on independent research and development and has formed a full closed-loop productioncapacity from photovoltaic glass original sheet production to deep processing, covering 1.6-4mm thickness deep processingproducts. With nearly 20 years of experience in the production of photovoltaic glass, CSG has accumulated a solid foundation inkey equipment and technologies such as kiln, calendaring and deep processing, and its product quality enjoys a high status andreputation in the industry, and has become an important and even strategic cooperative supplier of global module leadingenterprises. The ultra-thin photovoltaic glass below 2mm developed and promoted by the Company is a high-quality packagingmaterial for lightweight double-glass photovoltaic modules, and the product capacity, quality and comprehensive manufacturingyield continue to maintain the forefront of the industry.In the context of the era of carbon peak and carbon neutrality, the Company is firmly optimistic about the long-term developmentof the photovoltaic new energy industry, resolutely responds to the national "dual carbon" strategic goal, and continuouslyimproves and enhances the large-scale layout and business competitiveness of the Group's photovoltaic glass on the basis ofrelying on the national "14th Five-Year Plan" and the Company's own strategic development plan. As of June 2024, the Companyhas a total of 9 photovoltaic rolled glass riginal sheet production kilns and supporting deep processing production lines inDongguan, Wujiang, Fengyang, Xianning and Beihai, of which the first kiln and supporting processing lines in Beihai, Guangxiare in the trial production stage, and the second kiln and supporting processing lines and the technical upgrading project ofWujiang photovoltaic line are under construction in an orderly manner as planned. After the project under construction andtechnical transformation project are put into production, the Company's photovoltaic glass production capacity will be greatlyincreased, and the scale advantage will be further improved and consolidated.As the most potential clean energy, photovoltaic will have a broader development space in the future, the technologicaldevelopment speed of the industry will be more rapid, and the requirements for photovoltaic glass will be more professional and
personalized. The Company has rich experience and advanced technological R&D advantages in production technology, processconcepts, product awareness. In the future, the Company will continue to improve the level of R&D, meet the market demandthrough technological innovation, optimize the product structure, and strive to become a more professional photovoltaic glasssupplier.Architectural glass businessAs one of the largest high-end building energy-saving glass suppliers in China, CSG integrates R&D and design, technicalconsulting, production and manufacturing, and marketing and service in the architectural glass business. It always aims to “buildgreen energy-saving products and create quality life” and forms a CSG brand image with quality, service and continuous R&D asits core competitiveness, which is strongly competitive in foreign markets as well. The Company has the world's leading glassdeep processing equipment and testing instruments, and its products cover all kinds of engineering and architectural glass.Currently, the Company has seven deep processing bases of energy-saving glass in Tianjin, Dongguan, Xianning, Wujiang,Chengdu, Zhaoqing and Xi’an, and the layout of national bases is being perfected.CSG’s architectural glass business adheres to the customized business strategy of trinity of technical service, marketing, R&D andmanufacturing, relying on its own manufacturing and R&D strength, as well as the marketing and service network formed bydomestic and overseas offices, to meet the personalized needs of domestic and foreign customers and construction projects. TheCompany's R&D and application level in coating technology keep pace with the world, the high-end product technology isinternationally leading, and the high-quality energy-saving and environmentally friendly LOW-E insulating glass continues to leadthe domestic high-end market share. In 2017, CSG’s low-E coated glass was awarded the title of Single Champion Product by theMinistry of Industry and Information Technology, and it passed the review again in March 2024, which fully proves the leadingposition of CSG’s architectural glass in the industry. Under the background of the "dual carbon" goal and the national greenenergy-saving building requirements, the Company has taken the lead in independently developing many energy-saving products,such as innovative and world-leading "Ice Kirin" glass series products, thermal insulation products, BIPV products, etc., amongwhich the "Ice Kirin" glass series products have received unanimous praise from the market for their high performance andstability relying on the Company's advanced coating technology, and have become the benchmark in the domestic product market.The innovation and R&D of energy-saving products with higher energy efficiency is important to the energy conservation andemission reduction of newly constructed buildings and vital to the energy-conservation-oriented transformation of existingbuildings. In order to meet the market demand for product innovation, the Company will continue to conduct innovation, so as toprovide products with higher energy efficiency for the market.The Company’s quality management system for engineering and architectural glass has been respectively approved byorganizations of UK AOQC and Australia QAS. The product quality which meets the national standards of the US, the UK andAustralia enables CSG has an advantage in the international tendering and bidding. Since 1988, CSG’s engineers and technicianshave been continuously participating in the formulation and compilation of various national standards and industry standards. Allkinds of high-quality engineering architectural glass provided by the Company are widely used in landmark buildings such asmajor city CBDs and transportation hubs at home and abroad, which are too numerous to mention.In addition, the Company has always adhered to the intelligent transformation and digital transformation as the key increment ofthe development of architectural glass business. It has continuously invested and accumulated rich experience in the research ofproduction automation, intellectualization, information technology and equipment, and the efficiency improvement of intelligentupgrading and transformation of traditional equipment. With technological progress and process optimization, the Company hasreduced production manpower consumption, material consumption and energy consumption, actively promoting the Company’stransformation and upgrading to achieve intensive manufacturing and high-quality development.
Float glass businessIn the field of float glass, CSG has 10 advanced float glass production lines in Dongguan, Chengdu, Langfang, Wujiang andXianning. In the first half of 2024, one production line of Chengdu Float Company was shut down for upgrading and renovation,and as of June 2024, there are a total of 9 production lines in production. The 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. CSGfloat glass products are high-end products that can be directly used in downstream deep processing, and the proportion ofdifferentiated 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, reflectors, automobilewindshields, scanners and photocopiers transmitting plates, home appliance panels, display protection and other application fieldswith high requirements on glass quality. CSG has established long-term and stable business cooperation with many well-knownprocessing enterprises.The profit level of the float glass business is generally positively correlated with the level of real estate completion data, and is alsoaffected 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. In response to the downward pressure on the market, theCompany focuses on improving management efficiency, improving the level of lean production of conventional products, firmlyimplementing the differentiated competition strategy, carefully cultivating and developing differentiated product markets, andcontinuously increasing the proportion of high-value-added product sales, such as ultra-white products, so as to continuouslyconsolidate and enhance the industry competitiveness of the Company’s float glass business.In the first half of 2024, the new construction and completion volume in the real estate industry showed a significant declinecompared with the same period last year, the supply and demand relationship in the real estate market changed, the domesticarchitectural glass market demand continued to slow down, the market was declining, and the float glass industry was undergoingcyclical adjustments. However, with the continuous promotion of the national "dual carbon" policy and the improvement ofpeople's living standards, the market demand for differentiated products such as ultra-white float glass is relatively stable.Electronic glass and display businessFor more than a decade, CSG Electronic Glass has always adhered to technology leadership, attached importance to R&D andinnovation, broken through market barriers with independent intellectual property rights and independent innovation, and firmlyfollowed the development route of quality priority. After more than a decade of continuous cultivation and accumulation, CSGElectronic Glass has completed the comprehensive coverage of electronic glass products in various application scenarios of high,medium and low-end applications. It actively explores new markets and developed new applications in intelligent consumerelectronics terminals, touch components, automotive window glass, vehicle displays, medical equipment, industrial controlcommercial displays, smart homes and other application fields, and the market share and brand effect of the Company's medium-alumina and high-alumina electronic glass products remain stable. CSG has long been committed to becoming an industry-leadingglass material solution provider, and it will develop new application materials in the fields of smart home, vehicle display,advanced medical, new energy vehicles, and smart home appliances in the future.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 includesoptical coating materials, vehicle-mounted cover plates and vehicle-mounted touch panels. Among them, the optical coatingmaterial 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 customized cover plates of special functions. Theseproducts are supplied indirectly to renowned domestic and international automotive brands through downstream customers ofvehicle-mounted device manufacturers.Solar energy businessCSG Group is a pioneer in the field of photovoltaic product manufacturing in China, with a complete industrial chain coveringhigh-purity crystalline silicon, silicon wafers, solar cells, modules and the investment and operation of photovoltaic power plants.CSG has three national-level scientific research and technology platforms and seven provincial-level scientific research andtechnology platforms, including the "National and Local Joint Engineering Laboratory for Semiconductor Silicon MaterialPreparation Technology" and the "National Enterprise Technology Center".In recent years, under the trend of "dual carbon", the photovoltaic track has become hot, and the expansion momentum of differentlinks in the industrial chain is strong. After entering 2024, the supply-demand imbalance has led to a significant decline in marketprices at various links of the industrial chain, market competition has intensified in the short run, and the elimination of outdatedproduction capacity has accelerated and the photovoltaic industry has entered a deep water zone of reshuffle. In the long run, withthe increasing demand for clean energy and continuous technological progress around the world, the photovoltaic industry willcontinue to maintain a steady and rising development trend and make greater contributions to the transformation and upgrading ofthe energy structure. The subsidiaries of CSG's photovoltaic sector fully implement the strategic decisions and arrangements madeby the Group's management. The low-energy-consuming project of Yichang base is smoothly promoted. The 50,000 tons/yearhigh-purity crystalline silicon project in Qinghai base is under construction as planned, which will further expand the scale of theGroup's solar energy business and enhance the overall competitiveness of the Group after it is put into operation. Dongguan baseincreases efforts to develop differentiated product markets and enhance market share. Shenzhen base continues to increase thedevelopment of power station projects.
(II) Overview of operation during the report periodIn the first half of 2024, under the impact of multiple factors such as the complicated and volatile international economic situation,increase in trade barriers, deep adjustment of the domestic real estate sector as well as accelerated decline in the prices throughoutthe photovoltaic industry due to periodical supply-demand imbalance, the overall situation of the industries that the Companyengaged in was severe, the pressure on the enterprises’ production and operation increased, and the operational quality andefficiency of the industry was under stress. With the ups and downs of the economic environment, the Company maintained itsstrategic focus and actively responded to the market changes, analyzed the market and industry dynamics in a timely manner, dulyadjusted the business strategies, and fully implemented lean management and cost reduction and efficiency increase to achievemaximum control of various costs. Meanwhile, the Company gave full play to its advantages of scale and industrial chain,deepened the differentiated business strategy, and strived to maximize the economic benefits. In the first half of 2024, theCompany’s operating revenue totalled RMB 8.079 billion, decreasing by 4% year-on-year; its net profit reached RMB 0.721billion, decreasing by 18% year-on-year; and the net profit attributable to shareholders of the listed company was RMB 0.733billion, decreasing by 18% year-on-year.
Glass business segmentPhotovoltaic glass: In the first half of 2024, the supply-demand mismatch in the photovoltaic market remained prominent, with asignificant decline in industry chain prices and factors such as international trade barriers,, and the photovoltaic industry was in acyclical adjustment phase. The Company was fully dedicated to providing high-quality and high-performance photovoltaic glassproducts while perfecting its industrial layout and enhancing its economies of scale. It unswervingly implemented thedifferentiated business strategy and continued to promote the lean production management to improve efficiency. In the face of theindustry’s rapid technological upgrading, the Company quickly adapted to market needs and strengthened technological innovation,achieving significant results in the research and sales of differentiated products.. The Company independently developed high-transmittance double-coated photovoltaic glass, colourless double-coated photovoltaic glass, anti-glare photovoltaic glass, dust-proof photovoltaic glass and so on. These products meet the customers’ regular performance requirements while greatly satisfyingtheir specific needs in terms of high transmittance, aesthetics, anti-glare, cleaning, etc., representing a perfect combination ofindustrialisation and humanisation. Facing the price fluctuations in the photovoltaic glass market, the Company focused onimproving quality and efficiency and differentiated layout. On the one hand, it relied on its own resource endowment and gave fullplay to the advantages of underlying technology to empower the enhancement of production efficiency and cost reduction. On theother hand, precisely combining with the downstream customers’ demand for product diversification, it matched the characteristicsof different battery technologies to develop and promote differentiated products, giving photovoltaic glass various characteristicssuch as high efficiency, aesthetics and scenarization. By putting various important management initiatives in place, the Company’sphotovoltaic glass business achieved steady operation in the volatile market condition, and gradually formed a corecompetitiveness of sustainable development.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 customizedbusiness strategy integrating technical service, marketing, and R&D and manufacturing, to meet the personalized needs ofdomestic and foreign customers and construction projects. As the Company’s share in the domestic high-end construction marketcontinues to rise, it also maintains a leading position in market scale and profitability in the field of deep processing within thesame industry.In the first half of 2024, faced with a complex external economic situation, the Company’s architectural glass business adjusted itsbusiness strategies, actively explored the market to seek diversified development, strengthened the operation of productdifferentiation, and thus the overall operation remained stable. By refining the market layout, the Company continued to increasethe signing of high-quality projects, which resulted in the drastic year-on-year increase of the order compounding degree.Furthermore, it strongly advanced the business of customized products to explore new business growing points, continued toincrease the proportion of sales of differentiated products to enhance the overall product profitability, and expanded the influenceof the brand of CSG by strengthening brand promotion and opening up emerging markets. Moreover, it promoted the digitaltransformation to improve the automation and informatization level of production line and constantly enhance the productionefficiency of equipment, and continuously strengthened the cost reduction and efficiency increase and lean management toimprove core competitiveness. With adoption of this series of initiatives, the Company’s architectural glass business achieved a
steady operation in current competitive market environment, while the development of product diversification further enhanced themarket competitiveness and service capabilities of architectural glass.Float glass: In the first half of 2024, the industry went through a cyclical adjustment. Facing the severe business environment, theCompany firmly implemented the differentiated product strategy. On the one hand, it focused on the domestic high-end ultra-whiteglass market, created “Blue Diamond”, a high-end brand of ultra-white glass series, and continuously increased the market share tobecome the leader in the industry segment. On the other hand, it constantly produced and marketed more high value-addedproducts such as large-size and ultra-thick products and high-grade products, to stay among the top in the segment market of high-grade float glass and enhance profitability.At the same time, the Company continued to reduce costs and increase efficiency, effectively reducing the procurement cost bycoordinating and organizing the centralized procurement of bulk raw materials. The production efficiency was steadily improvedby strengthening the lean management of full production process.Electronic glass and display business segmentAccording to the data released by industry research organizations, after a downturn of more than two years, the global shipmentvolume of smartphones in the first quarter of 2024 amounted to approximately 290 million units, up 8.9% year-on-year, and thisfigure is expected to grow by 4.0% for the year to reach 1.21 billion units. However, there is still a wide gap compared with 1,405million units in 2018, and the global smartphone market is still facing certain challenges. In the first half of 2024, with thedomestic electronic glass market being impacted by the continued release of new production capacity, the contradiction betweensupply and demand became more intense, the industry was more competitive, the price in the electronic glass market continued todecline, and the industry’s operational efficiency was affected to a certain extent.Facing the severe market environment, the Company’s electronic glass business constantly strengthened the research anddevelopment and promoted the cost reduction and efficiency increase in terms of internal management. For marketing, it continuedto actively explore new markets and develop new applications in intelligent electronic terminals, touch control modules, vehicle-mounted displays, medical equipment, industrial automatic control displays & commercial displays, smart home and other fields.In the first half of the year, the Company’s overall market share of medium-alumina and high-alumina electronic glass productsremained stable.For display devices, in the first half of 2024, the Company deeply ploughed its traditional dominant segment of optical coatingmaterial business. On the other hand, it continued to develop its vehicle-mounted cover plate business, the newly expanded projectPhase II achieved mass production and the sale volume increased substantially compared with the same period last year. Forvehicle-mounted touch panel segment, the Company’s production and sales volumes declined compared with the same period lastyear due to the shrinking global demand for consumer electronics and the popularity of in-cell touch technology.Solar energy business segmentIn the first half of 2024, China’s photovoltaic new installation scale and exports of photovoltaic products continued to grow andthe overall demand was improving. However, the price of main products in the industrial chain was substantially affected byintensified market competition due to concentrated rapid growth of the supply, and thus declined sharply year-on-year. The solarphotovoltaic industry is facing serious challenges of supply-demand mismatch, accelerated elimination of backward productioncapacity and persistently depressed product-end price. Under the background of industry reshuffle, all processes of the whole
industrial chain are being operated under pressure. In the first half of 2024, the overall profitability of photovoltaic enterprises felldramatically year-on-year, losses for almost all types of business from silicon materials to silicon wafers and from solar cells tomodules. The photovoltaic industry is currently in the course of gradually returning to rational development from explosive growth,and the industrial chain has wholly entered a period of adjusting and reshaping market pattern. As the photovoltaic industryentered a new round of adjustment cycle, with the cost pressures and squeezed profit margins as well as under the doublechallenges of intensified market competition and slowdown in the growth rate of end demand, the solar photovoltaic businesssegment of the Company was impacted significantly in the first half of 2024 and the Company took actions promptly to addressthis impact. Through the analysis of market trends and industry development and dynamics, it responded quickly to marketchanges, reasonably planned its pace of production and operation. By improving the process, it enhanced the product quality,strengthened lean management, deeply dug the potential of equipment, fully implemented the strategy of cost reduction andefficiency increase, and thus effectively offset some of the market pressures.II. Core Competitiveness Analysis
CSG Group, 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 developmentand 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
"CSG" is a famous brand of domestic energy-saving glass, ultra-thin electronic glass, display and solar photovoltaic products. Itsproducts 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 "Preferred Brand of Architectural Glass" in Door and WindowCurtain Wall Industry for many years and the "Top 20 Building Materials Enterprises in China" in 2023. "CSG" brand wasrecognized by the United Nations Industrial Development Organization as the fourth batch of "International Reputation Brand" in2018. CSG’s low-E coated glass and ultra-thin electronic glass were awarded the title of "Single Champion Product" by theMinistry of Industry and Information Technology, and it is the only manufacturer in the domestic glass industry that has two singlechampion products at the same time. The Company was awarded the title of "Outstanding Green Manufacturing Enterprise" in thebuilding materials industry of Guangdong Province for the period of 2018-2022, and the title of “Shenzhen Top 500 Enterprisesfor 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. Asof 30 June 2024, the Company has had a total of 22 national high-tech enterprises, 2 national-level single champion products in themanufacturing industry, 1 national-level engineering laboratory, 1 national-level enterprise technology centre, 5 nationalenterprises with intellectual property advantages, 1 national intellectual property demonstration enterprise, 6 national-levelspecialized, sophisticated, distinctive, and innovative enterprises (“Little Giants”), 2 provincial-level expert workstation, 1provincial-level doctoral workstation, 13 provincial-level enterprise technology centres, 6 provincial-level engineering technologyresearch centres, 2 provincial-level engineering research centres, 4 provincial-level demonstration enterprises for intellectualproperty construction, 1 provincial-level intellectual property demonstration enterprise, 7 provincial-level “Little Giants”, 1provincial-level government quality award, 10 provincial-level scientific and technological progress awards, and 4 provincial-levelpatent awards. As of 30 June 2024, the Company has applied for a total of 3,210 patents, including 1,383 invention patents, 1,814
utility model patents, and 13 design patents. Moreover, the Company has had a total of 2,361 authorized patents, including 540invention patents, 1,808 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 photovoltaicglass. With the continuous improvement of the technological level of each process of the industrial chains, the Company’sindustrial advantage becomes obvious; meanwhile, the Company possesses a complete industry layout, with production baseslocated 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 astrong 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 anduniversities which are in advantage in silicate materials industry, to accelerate the transformation of scientific research results, andto strengthen basic research; on the other hand, an excellent and stable management team is one of the most fundamentalguarantees for the Company’s rapid and stable development. The Company has formed a good echelon training mechanism forprofessional managers. At present, the Company’s senior management team has comparative advantages in multiple aspects, suchas 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. Forexample, the Company has widely conducted professional training on carbon emission management to improve the ability ofrelevant personnel to better cope with carbon-related affairs. Meanwhile, the Company has actively promoted through-life carbonfootprint 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 flatglass industry, recognized as a pilot enterprise for carbon peaking in the construction material industry, has made efforts to exploreand implement the action plans and effective routes of carbon peaking in the industry. The relevant subsidiary of the Company hasactively gotten involved in the regional pilot market of carbon transactions to strive for a calculation method of carbon quotamatching the real situation of the Company’s production. With its total emissions highly consistent with the quotas. As a pioneerof green development in the industry, the Company has 9 subsidiaries being honored as national "Green Factories", winning itselfabundant room for development.III. Main business analysisOverviewPlease refer to the relevant content of “I. Main business of the Company in the report period”.Year-on-year changes of main financial data
Unit: RMB
| The report period | The corresponding period of last year | Increase /decrease year-on-year（%） | Reasons of change | |
| Operating income | 8,078,970,651 | 8,389,340,245 | -3.70% | |
| Operating costs | 6,333,338,505 | 6,495,395,931 | -2.49% | |
| Sales expenses | 155,003,701 | 146,856,141 | 5.55% | |
| Administration expenses | 394,521,014 | 340,252,772 | 15.95% | Mainly due to the increase in amortization of intangible assets - mining rights. |
| Financial expenses | 75,849,425 | 72,764,645 | 4.24% | Mainly due to the reduction of the national deposit interest rate and the decline of the Company's interest income. |
| Income tax expenses | 78,227,657 | 74,094,170 | 5.58% | |
| R&D investment | 336,673,375 | 346,264,501 | -2.77% | |
| Net cash flow arising from operating activities | 993,284,145 | 518,427,185 | 91.60% | Mainly due to the increase in bill discounting for this period. |
| Net cash flow arising from investment activities | -1,515,159,927 | -1,682,063,852 | -9.92% | |
| Net cash flow arising from financing activities | 937,592,707 | -793,930,485 | 218.10% | Mainly due to the payment of RMB 2 billion of maturing corporate bonds in the same period of last year, while there was no such item in the current period. |
| Net increase in cash and cash equivalents | 426,377,690 | -1,954,758,111 | 121.81% | Mainly due to the payment of RMB 2 billion of maturing corporate bonds in the same period of last year, while there was no such item in the current period. |
Major changes on profit composition or profit resources in the report period
□ Applicable √ Not applicable
There was no major change in the Company's profit composition or profit resources during the report period.Composition of operating income
Unit: RMB
| The report period | The corresponding period of last year | Increase/decrease y-o-y | |||
| Amount | Ratio in operating income | Amount | Ratio in operating income | ||
| Total of operating income | 8,078,970,651 | 100% | 8,389,340,245 | 100% | -3.70% |
| According to industry | |||||
| Glass industry | 7,198,705,489 | 89.10% | 6,335,187,971 | 75.51% | 13.63% |
| Electronic glass & Display industry | 709,839,096 | 8.79% | 720,405,893 | 8.59% | -1.47% |
| Solar energy and other industries | 349,633,564 | 4.33% | 1,585,418,445 | 18.90% | -77.95% |
| Undistributed | 196,342,139 | 2.43% | 220,156,296 | 2.62% | -10.82% |
| Inter-segment offsets | -375,549,637 | -4.65% | -471,828,360 | -5.62% | -20.41% |
| According to product | |||||
| Glass products | 7,198,705,489 | 89.10% | 6,335,187,971 | 75.51% | 13.63% |
| Electronic glass & Display products | 709,839,096 | 8.79% | 720,405,893 | 8.59% | -1.47% |
| Solar energy and other products | 349,633,564 | 4.33% | 1,585,418,445 | 18.90% | -77.95% |
| Undistributed | 196,342,139 | 2.43% | 220,156,296 | 2.62% | -10.82% |
| Inter-segment offsets | -375,549,637 | -4.65% | -471,828,360 | -5.62% | -20.41% |
| According to region | |||||
| Mainland China | 7,411,866,057 | 91.74% | 7,695,234,258 | 91.73% | -3.68% |
| Overseas | 667,104,594 | 8.26% | 694,105,987 | 8.27% | -3.89% |
List of the industries, products or regions exceed 10% of the operating income or operating profits of the Company
√ Applicable □ Not applicable
Unit: RMB
| Operating income | Operating cost | Gross profit ratio | Increase/decrease of operating income y-o-y | Increase/decrease of operating cost y-o-y | Increase/decrease of gross profit ratio y-o-y | |
| According to industry | ||||||
| Glass industry | 7,198,705,489 | 5,559,603,466 | 22.77% | 13.63% | 9.75% | 2.73% |
| Solar energy and other industries | 349,633,564 | 359,131,958 | -2.72% | -77.95% | -66.55% | -35% |
| According to product | ||||||
| Glass products | 7,198,705,489 | 5,559,603,466 | 22.77% | 13.63% | 9.75% | 2.73% |
| Solar energy and other products | 349,633,564 | 359,131,958 | -2.72% | -77.95% | -66.55% | -35% |
| According to region | ||||||
| Mainland China | 7,411,866,057 | 5,808,301,328 | 21.64% | -3.68% | -2.09% | -1.27% |
Under the circumstances that the statistical standards for the Company’s main business data adjusted in the report period, theCompany'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
IV. Non-core business analysis
□ Applicable √ Not applicable
V. Assets and liabilities
1. Significant changes in assets composition
Unit: RMB
| End of the report period | End of last year | Increase or decrease in proportion | Explanation of significant changes | |||
| Amount | Percentage to total assets | Amount | Percentage to total assets | |||
| Cash at bank and on hand | 3,619,278,955 | 11.22% | 3,076,774,218 | 10.13% | 1.09% | |
| Accounts receivable | 1,845,881,636 | 5.72% | 1,881,796,408 | 6.20% | -0.48% | |
| Inventories | 1,978,742,256 | 6.13% | 1,590,224,795 | 5.24% | 0.89% | |
| Investment properties | 292,711,858 | 0.91% | 290,368,105 | 0.96% | -0.05% | |
| Fixed assets | 12,785,878,380 | 39.62% | 13,145,568,631 | 43.30% | -3.68% | |
| Construction in progress | 5,860,245,516 | 18.16% | 4,325,016,420 | 14.24% | 3.92% | Mainly due to the increase in expenditure on ongoing |
| constructions of some subsidiaries | ||||||
| Right-of-use assets | 20,668,967 | 0.06% | 21,637,628 | 0.07% | -0.01% | |
| Short-term borrowings | 288,350,882 | 0.89% | 436,853,583 | 1.44% | -0.55% | Mainly due to the repayment of short-term borrowings that were due |
| Contract liabilities | 343,813,781 | 1.07% | 362,538,795 | 1.19% | -0.12% | |
| Long-term borrowings | 6,750,620,208 | 20.92% | 6,221,648,676 | 20.49% | 0.43% | |
| Lease liabilities | 14,679,278 | 0.05% | 15,134,562 | 0.05% | 0% | |
| Non-current assets due within one year | - | 0% | 84,191,224 | 0.28% | -0.28% | Mainly due to the maturity of previously purchased large-amount certificate of deposit |
| Other non-current assets | 232,792,856 | 0.72% | 396,600,354 | 1.31% | -0.59% | Mainly due to the decrease in prepayment for engineering and equipment |
| Employee benefits payable | 325,264,034 | 1.01% | 483,337,796 | 1.59% | -0.58% | Mainly due to the year-end bonuses for employees accrued in the previous year that were paid during the report period |
| Taxes payable | 166,777,597 | 0.52% | 123,407,413 | 0.41% | 0.11% | Mainly due to the increase in corporate income tax that was payable |
| Other payables | 1,160,609,297 | 3.60% | 484,741,877 | 1.60% | 2% | Mainly due to the increase in dividends for ordinary shareholders that had been declared but were not yet paid out |
| Other current liabilities | 296,865,126 | 0.92% | 454,332,686 | 1.50% | -0.58% | Mainly due to the reclassification of supply chain financial notes to notes payable |
| Long-term payables | 510,957,893 | 1.58% | 88,204,163 | 0.29% | 1.29% | Mainly due to the increase in finance leases of some subsidiaries |
| Special reserve | 3,363,900 | 0.01% | 1,411,139 | 0% | 0.01% | Mainly due to a low base in the prior period and the changes in the current period |
2. Main overseas assets
□ Applicable √ Not applicable
3. Assets and liabilities at fair value
√ Applicable □ Not applicable
Unit: RMB
| Item | Opening balance | Profit and loss from changes in fair value in the current period | Cumulative changes in fair value included in equity | Impairment accrued in the current period | Purchase amount for this period | Amount sold in this period | Other changes | Closing balance |
| Financial assets | ||||||||
| Investment properties Note 1 | 290,368,105 | 2,343,753 | 292,711,858 | |||||
| Receivables financing Note 2 | 529,945,623 | 92,184,622 | 622,130,245 | |||||
| Total of the above | 820,313,728 | 94,528,375 | 914,842,103 | |||||
| Financial liabilities | 0 | 0 | ||||||
Other changes:
Note 1: Other changes in investment properties were due to changes in the rental of the house for debt repayment obtained in thecurrent year.Note 2: Other changes in receivables financing were due to changes in higher credit rating instruments received or endorsed.During the report period, whether the company’s main asset measurement attributes changed significantly or not
□ Yes √ No
4. Limited asset rights as of the end of the report period
Unit: RMB
VI. Investment analysis
1. Overall situation
√ Applicable □ Not applicable
| Investment in the report period (RMB) | Investment in the same period of last year (RMB) | Change range |
| 1,681,557,567 | 1,735,645,765 | -3.12% |
Item
| Item | Restricted Amount | Restricted reason |
| Monetary funds | 141,639,610 | Restricted circulation of deposits, freezes, etc |
| Notes receivable | 1,092,137,999 | Restriction of pledge |
| Fixed assets / Construction In Progress | 627,742,974 | Restricted financial leasing |
| Total | 1,861,520,583 |
2. The major equity investment obtained in the report period
□ Applicable √ Not applicable
3. The major ongoing non-equity investment in the report period
√ Applicable □ Not applicable
Unit: RMB
| Project name | Way of investment | Fixed asset investment or not | Industry involved | Amount invested during the report period | Accumulative amount actually invested by the end of the report period | Source of funds | Progress of project | Expected revenue | Accumulative revenue achieved by the end of the report period | Reasons for not achieving the planned progress and the expected revenue | Date of disclosure (if applicable) | Index of disclosure (if applicable) |
| Zhaoqing CSG High-grade Automotive Glass Production Line Project | Self-built | Yes | Manufacturing industry | 2,162,751 | 149,764,077 | Own funds and loans from financial institutions | Partially built | Part of the project has been completed, and the revenue thereof has been reflected in profits. | 13 December 2019 | Announcement number: 2019-077 | ||
| Wujiang CSG Architectural New Architectural Glass Intelligent Manufacturing Plant Construction Project | Self-built | Yes | Manufacturing industry | 480,863 | 88,017,373 | Own funds and loans from financial institutions | Partially built | Part of the project has been completed, and the revenue thereof has been reflected in profits. | 24 June 2020 | Announcement number: 2020-051 | ||
| Xi’an CSG Energy-saving Glass Production Line Project | Self-built | Yes | Manufacturing industry | 17,899,051 | 240,483,044 | Own funds and loans from financial institutions | Partially built | Part of the project has been completed, and the revenue thereof has been reflected in profits. | 7 November 2020 | Announcement number: 2020-070 | ||
| CSG East China Headquarters Building | Self-built | Yes | Manufacturing industry | 22,248,299 | 29,889,288 | Own funds and loans from financial institutions | Under construction | No revenue as the project is still in the construction period. | 27 August 2021 | Announcement number: 2021-039 | ||
| CSG Guangxi Beihai Photovoltaic Green Energy Industrial Park Project (Phase I) | Self-built | Yes | Manufacturing industry | 541,274,995 | 1,279,635,841 | Own funds and loans from financial institutions | Under construction | No revenue as the project is still in the construction period. | 10 September 2021 | Announcement number: 2021-041 |
| Hefei CSG Energy-saving Glass Intelligent Manufacturing Industry Base Project | Self-built | Yes | Manufacturing industry | 3,204,661 | Own funds and loans from financial institutions | Preparatory stage | In the preparation stage, there is no income. | 15 October 2021 | Announcement number: 2021-043 | |||
| Xianning CSG Energy-saving Glass Co., Ltd. Production Line Reconstruction and Expansion Construction Project | Self-built | Yes | Manufacturing industry | 7,680,969 | 53,705,579 | Own funds and loans from financial institutions | Under construction | No revenue as the project is still in the construction period. | 3 December 2021 | Announcement number: 2021-051 | ||
| Phase I Upgrading and Technical Transformation Project of Qingyuan CSG Energy-Saving New Materials Co., Ltd. | Self-built | Yes | Manufacturing industry | 2,247,649 | 28,939,219 | Own funds and loans from financial institutions | Under construction | No revenue as the project is still in the construction period. | 25 December 2021 | Announcement number: 2021-053 | ||
| High-purity crystalline silicon project with an annual output of 50,000 tons in Haixi Prefecture, Qinghai Province | Self-built | Yes | Manufacturing industry | 857,680,692 | 3,504,454,840 | Own funds and loans from financial institutions | Under construction | No revenue as the project is still in the construction period. | 23 June 2022 | Announcement number: 2022-024 | ||
| Anhui Fengyang 37.6 MW Distributed Photovoltaic Power Generation Project | Self-built | Yes | Manufacturing industry | 6,150,317 | 89,504,749 | Own funds and loans from financial institutions | Already put into operation | Production has begun, and the gains have been reflected in the profits. | 9 November 2022 | Announcement number: 2022-061 | ||
| Total | -- | -- | -- | 1,457,825,586 | 5,467,598,671 | -- | -- | -- | -- | -- | -- | -- |
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.
VII. Sale of major assets and equity
1. Sale of major assets
□ Applicable √ Not applicable
The Company did not sell major assets during the reporting period.
2. Sale of major equity
□ Applicable √ Not applicable
VIII. Analysis of main subsidiaries and joint-stock companies
√ Applicable □ Not applicable
Particular about main subsidiaries and joint -stock companies which have influence on the Company's net profit by over 10%
Unit: RMB
| Name of company | Type | Main business | Registered capital | Total assets | Net assets | Operating income | Operating profit | Net profit |
| Anhui CSG New Energy Material Technology Co., Ltd. | Subsidiary | Production and sales of photovoltaic glass | 1,750 million | 5,567,735,959 | 2,417,252,942 | 2,158,906,212 | 324,253,607 | 278,484,247 |
| Chengdu | Subsidiary | Development, | 260 | 1,055,035,769 | 657,008,830 | 562,391,011 | 99,634,574 | 87,591,625 |
| CSG Glass Co., Ltd. | manufacture and sales of various special glass | million | ||||||
| Xianning CSG Glass Co., Ltd. | Subsidiary | Manufacture and sales of special glass and photovoltaic glass | 235 million | 2,524,342,842 | 973,468,228 | 977,837,202 | 124,502,153 | 104,917,295 |
Particulars about subsidiaries obtained or disposed in report period
□ Applicable √ Not applicable
Description of main holding and shareholding companiesAnhui CSG New Energy Material Technology Co., Ltd. improved the operation of its new production line for photovoltaic glass,and the production and sales volume of photovoltaic glass increased significantly year-on-year; meanwhile, benefiting from thedecline in the costs of raw materials and fuels, the performance significantly improved year-on-year. Mainly benefiting from theimproved operation and lower costs of raw materials and fuels, the net profit of Chengdu CSG Glass Co., Ltd. increasedconsiderably year-on-year. Due to the resumption of production after the technical reform and upgrade of the second-line of floatglass and the improved operation of the new production line of photovoltaic glass, the production and sales volume of the mainproducts of Xianning CSG Glass Co., Ltd. increased substantially year-on-year; meanwhile, benefiting from lower costs of rawmaterials and fuels, its performance improved significantly year-on-year.
IX. Structured main bodies controlled by the Company
□ Applicable √ Not applicable
X. Risks the Company faces and countermeasures
In 2024, in the face of severe international and domestic political and economic development and the task of building a “CenturyCSG”, the Company will face the following risks and challenges:
① 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 marketchanges, and strive to achieve the annual core work objectives through steady operation.
② The glass industry is facing fierce competition for similar products, fluctuating prices of raw materials and fuels such as heavyalkali and natural gas, and rising labour costs. The photovoltaic glass industry is not only faced with the risk of price gamebetween all links of the photovoltaic industry chain affecting the market demand of photovoltaic glass, but also faces the risk oftemporary oversupply in the photovoltaic glass industry due to the rapid increase in production capacity. Due to the intensifyingcompetition in the industry market, the operational pressure faced by the architectural glass industry and the challenges broughtabout by the future market uncertainty are gradually increasing. The float glass industry is facing downward pressure on thedownstream architectural glass market demand and the risk of cyclical adjustment of the industry. The electronic glass industry isfacing the risk of intensified competition among similar products due to increasingly fierce contradiction between supply anddemand in China. The solar energy industry is facing challenges such as temporary oversupply, significant price drops in variouslinks of the industry chain, and a period of adjustment. In order to deal with the above risks, the Company will take the followingmeasures:
A. In the photovoltaic glass sector, the Company will take "expanding the market, adjusting the structure, reducing costs, andcontrolling risks" as the sales management policy, deeply meet the market demand, optimize the product structure, and continue topromote lean management and differentiated operation, so as to improve its profitability; With the management policy of "ensuringsafety, stabilizing production, improving quality, and controlling costs", it will comprehensively build a solid line of defense forsafe production, consolidate the foundation for high-quality development, continue to promote cost reduction, increase efficiencyand control costs, so as to enhance its core competitiveness; At the same time, on the basis of quickly responding to marketchanges in combination with the characteristics of the industry, it will pay close attention to the supply and demand of rawmaterials for strategic material preparation, so as to reduce the impact of raw material price fluctuations on the Company'soperating performance.B. In the architectural glass sector, the Company will accelerate the pace of digital and intelligent transformation of themanufacturing industry, reduce production consumption, material consumption and energy consumption, and continue to promotecost reduction and efficiency increase. It will increase the development and layout of high-end markets and overseas markets toactively respond to market changes. It will continue to deepen the market and refine the market layout to increase market share. Itwill further increase R&D investment and increase new product development and application in new fields to expand businesstrack. Also it will improve service capabilities, fully leverage the advantages of quality, technology, and brand, and meanwhileextend the market-oriented industrial chain to maintain the Company's advantageous position in the industry.C. In the float glass sector, the Company will continue to promote lean management and differentiated operation, optimize productstructure, and increase the sales proportion of high value-added products. At the same time, it will improve production efficiency,reduce production costs, improve profitability, and enhance the competitiveness of the industry through technological upgrading.D. In the field of electronic glass and display devices, in the face of fierce market competition, the Company will adhere to asustainable and stable business strategy, continue to consolidate the brand influence of CSG electronic glass, enhance customerrecognition, stabilize the mid-to-high-end market share, and actively explore new markets and develop new applications, and striveto maintain the leading edge in the industry in the fierce market competition.E. In the solar energy sector, the Company will pay close attention to market dynamics and supply-demand relation, andreasonably plan the Company's production and operation rhythm according to market changes, and improve production efficiencyby optimizing production processes and upgrading equipment in a timely manner. It will increase R&D investment andtechnological innovation to maintain competitiveness in market segments. It will improve operational efficiency by strengtheningresource integration and operation management, and ensure benefits through the implementation of cost reduction and efficiencyimprovement measures.
③ Risk of fluctuation of foreign exchange rate: At present, nearly 8.26% of the operating revenue of the Company is fromoverseas, and in the future, the Company will further develop overseas business. Therefore, the fluctuation of exchange rate willbring certain risk to the operation of the Company. To cope with such risk, the Company will settle 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 byfluctuation of exchange rate.XI. Implementation of the “Quality and Earnings Dual Improvement” Action PlanIndicate whether the Company has disclosed the “Quality and Earnings Dual Improvement” Action Plan.
□ Yes √ No
Section IV. Corporate GovernanceI. Particulars about Annual General Shareholders’ Meeting and Extraordinary GeneralShareholders’ Meeting held in the report period
1. Particulars about Shareholders' General Meeting in the report period
| Meeting session | Type of meeting | Investor participation ratio | Date of the meeting | Disclosure date | Disclosure index |
| The First Extraordinary General Shareholders’ Meeting of 2024 | Extraordinary General Shareholders’ Meeting | 24.29% | February 27, 2024 | February 28, 2024 | 《Announcement on Resolutions of the First Extraordinary General Shareholders’ Meeting of 2024》（Announcement No.: 2024-003） |
| Annual General Shareholders’ Meeting of 2023 | Annual General Shareholders’ Meeting | 25.74% | June 20, 2024 | June 21, 2024 | 《Announcement on Resolutions of Annual General Shareholders’ Meeting of 2023》（Announcement No.: 2024-013） |
2. Extraordinary General Shareholders’ Meeting which is requested to convene by the preferredshareholders who have resumed the voting right
□ Applicable √ Not applicable
II. Changes in directors, supervisors and senior management of the company
□ Applicable √ Not applicable
There were no changes in the directors, supervisors and senior management of the Company during the reporting period, asdetailed in the 2023 annual report.III.Profit distribution and conversion of capital reserves into equity capital in the reportperiod
□ Applicable √ Not applicable
The Company had no plans of cash dividend distribution, bonus shares being sent or converting capital reserve into share capitalfor the first half of the year.
IV. Implementation of the Company’s stock incentive plan, employee stock ownership planor other employee incentives
□ Applicable √ Not applicable
During the report period, the Company had no equity incentive plan, employee stock ownership plan or other employee incentivemeasures and their implementation.
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 environmentalprotection department
√ Yes □ No
The Company needs to comply with the disclosure requirements of non-metal building materials related industries in "ShenzhenStock Exchange Listed Companies Self-discipline Supervision Guide No. 3 - Industry Information Disclosure".Environmental protection related policies and industry standardsThe Company implemented the Environmental Protection Law of the People’s Republic of China, the Law of the People’sRepublic of China on the Prevention and Control of Air Pollution, the Law of the People’s Republic of China on the Preventionand Control of Water Pollution, the Law of the People’s Republic of China on the Prevention and Control of Noise Pollution, theEnvironmental Protection Tax Law of the People’s Republic of China and other relevant environmental protection laws andregulations, and implemented the Emission Standard of Air Pollutants for Flat Glass Industry, Emission Standard of Air Pollutantsfor Electronic Glass Industry, Emission Standard of Air Pollutants for Glass Industry, the Integrated Emission Standard of AirPollutants, the Sewage Integrated Emission Standards, the Environmental Noise Emission Standards at the Boundary of IndustrialEnterprises and other national, industry and local pollutant discharge standards.Administrative license for environmental protectionThe construction projects of each subsidiary carried out environmental impact assessment work and obtain EIA approval in strictaccordance with the requirements of the Environment Impact Assessment Law of the People’s Republic of China and theCatalogue of Classified Management of Environmental Impact Assessment of Construction Projects. During the construction ofthe project, the construction of pollution prevention and control facilities shall be carried out in strict accordance with therequirements of the project “Three Simultaneous” and put into production and use at the same time as the main project. During thetrial production period, the inspection and acceptance shall be organized in accordance with the relevant regulations onenvironmental protection acceptance of the completion of the construction project in order to ensure that the construction projectcompletes 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 theimplementation report of pollutant discharge permit.Industry emission standards and specific conditions of pollutant emission involved in production and operation activities
| Name of company or subsidiary | Type of main pollutants and characteristic pollutants | Name of main pollutants and characteristic pollutants | Way of emission | Number of exhaust vent | Exhaust vent distribution | Emission concentration/ intensity | Emission standard of pollutants | Total emission | Approved total emission | Excessive emission |
| Xianning CSG Glass Co., Ltd. | Air pollutants | Dust | Continuous/ Intermittent | 54 | Production plant area | ≤30mg/m? | Emission Standard of Air Pollutants for Flat Glass Industry | Particulates: 9.00t | Particulates: 93.251t/a | N/A |
| Soot | ≤25mg/m? | Particulates: 9.00t | Particulates: 93.251t/a |
| SO2 | ≤200mg/m? | (GB26453-2011) | 136.72t | 636.51t/a | ||||||
| NOx | ≤350mg/m? | 211.49t | 1113.89t/a | |||||||
| Chengdu CSG Glass Co., Ltd. | Air pollutants | Dust | Continuous/ Intermittent | 43 | Production plant area | ≤20mg/m? | Emission Standard of Air Pollutants for Flat Glass Industry (GB26453-2011) | Particulates: 6.192t | Particulates: 142.114t/a | N/A |
| Soot | ≤20mg/m? | Particulates: 6.192t | Particulates: 142.114t/a | |||||||
| SO2 | ≤200mg/m? | 23.096t | 1136.917t/a | |||||||
| NOx | ≤350mg/m? | 35.571t | 1989.609t/a | |||||||
| Hebei CSG Glass Co., Ltd. | Air pollutants | Dust | Continuous/ Intermittent | 19 | Production plant area | ≤10mg/m? | Ultra Low Emission Standard of Air Pollutants for Flat Glass Industry (DB13/2168-2020) | Particulates: 7.21556t | Particulates: 19.92t/a | N/A |
| Soot | ≤10mg/m? | Particulates: 7.21556t | Particulates: 19.92t/a | |||||||
| SO2 | ≤50mg/m? | 21.6691t | 99.63t/a | |||||||
| NOx | ≤200mg/m? | 96.2348t | 398.55t/a | |||||||
| Wujiang CSG Glass Co., Ltd. | Air pollutants | Dust | Intermittent | 37 | Production plant area | 30mg/m? | Emission Standard of Air Pollutants for Flat Glass Industry (GB26453-2011) | 8.86t | 76.91t/a | N/A |
| Soot | Continuous | 2 | 15mg/m? | Technical Guidelines for Emergency Emission Reduction in Key Industries in Heavy Pollution Weather (2020 Revision) | 8.86t | 76.91t/a | ||||
| SO2 | 50mg/m? | 74.01t | 238.28 t/a | |||||||
| NOx | 200mg/m? | 408.15t | 818.04 t/a | |||||||
| Dongguan CSG Solar Glass Co., Ltd. | Air pollutants | Dust | Continuous/ Intermittent | 23 | Production plant area | ≤20mg/m? | Emission Standard of Air Pollutants for Flat Glass Industry (DB44-2159-2019) | Particulates: 4.17t | Particulates: 34.85t/a | N/A |
| Soot | ≤30mg/m? | Particulates: 4.17t | Particulates: 34.85t/a | |||||||
| SO2 | ≤400mg/m? | 92.055t | 300.99t/a | |||||||
| NOx | ≤550mg/m? | 186.7t | 535.67t/a | |||||||
| Hebei Panel Glass Co., Ltd. | Air pollutants | Dust | Continuous/ Intermittent | 9 | Production plant area | ≤30mg/m? | Emission Standard of Air Pollutants for Electronic Glass Industry (GB29495-2013) | Particulates: 0.156t | Particulates: 16.4225t/a | N/A |
| Soot | ≤10mg/m? | Particulates: 0.156t | Particulates: 16.4225t/a | |||||||
| SO2 | ≤50mg/m? | 1.87t | 87.7t/a | |||||||
| NOx | ≤200mg/m? | 3.2t | 105.1t/a | |||||||
| Xianning CSG Photoelectric Glass Co., Ltd. | Air pollutants | Dust | Continuous/ Intermittent | 6 | Production plant area | ≤20mg/m? | Emission Standard of Air Pollutants for Electronic Glass Industry (GB29495-2013) | Particulates: 0.815t | Particulates: 17.656t/a | N/A |
| Soot | ≤15mg/m? | Particulates: 0.815t | Particulates: 17.656t/a | |||||||
| SO2 | ≤10mg/m? | SO2: 0.077t/a | SO2: 65.6t/a | |||||||
| NOx | ≤330mg/m? | NOx: 33.367t/a | NOx: 163.81t/a | |||||||
| Dongguan CSG Architectural Glass Co., Ltd. | Water pollutants | pH | Intermittent | 1 | Sewage vent | 6~9 | Guangdong Province Water Pollutant Emission Limit (DB44/26-2001) | / | / | N/A |
| COD | 27mg/L | 0.3t | 5.4t/a | |||||||
| Ammonia nitrogen | 0.244mg/L | 0.00228t | 0.6t/a | |||||||
| Tianjin CSG Energy- | Water pollutants | pH | Intermittent | 2 | Sewage vent | 6~9 | Sewage Integrated | / | / | N/A |
| Saving Glass Co., Ltd. | COD | ≤500mg/L | Emission Standards (Level 3 Standard DB12/356-2018) | 0.0053t | 10.806t/a | |||||
| Ammonia nitrogen | ≤45mg/L | 0.00157t | 0.0685t/a | |||||||
| Wujiang CSG East China Architectural Glass Co., Ltd. | Water pollutants | pH | Intermittent | 1 | Sewage vent | 6~9 | Sewage Integrated Emission Standards (GB8978-1996) | / | / | N/A |
| COD | ≤500mg/L | 4.752t | 40.592t/a | |||||||
| Ammonia nitrogen | ≤45mg/L | 0.582t | 1.00444t/a | |||||||
| Dongguan CSG PV-tech Co., Ltd. | Water pollutants | COD | Intermittent | 20 | Sewage vent/ production plant area | ≤70mg/L | Guangdong Province Water Pollutant Emission Limit (DB44/26-2001) | 0t | 2.44t/a | N/A |
| NOx | ≤30mg/m? | Pollutant Emission Standard for Battery Industry (GB30484-2013) | 0t | 33.15t/a | ||||||
| Air pollutants | VOCS | ≤30mg/m? | VOC Emission Standard for Furniture Manufacturing Industry (DB44/814-2010) | 0t | 1.93t/a | |||||
| Yichang CSG Polysilicon Co., Ltd. | Water pollutants | COD | Intermittent | 9 | Sewage vent/ production plant area | ≤200mg/L | Emission Standards of Pollutants for Inorganic Chemical Industry (GB31573-2015), and Integrated Emission Standard of Air Pollutants (GB16297-1996) | 3.826t | 89.2584t/a | N/A |
| pH | 6~9 | / | / | |||||||
| Air pollutants | NOx | ≤240mg/m? | 0t | 38.28t/a | ||||||
| Particulates | ≤120mg/m? | 0.358t | 32.7423t/a |
Treatment of pollutantsAll subsidiaries have built pollution prevention and control facilities in accordance with the environmental impact assessmentdocuments of construction projects and relevant specifications, and adopted air pollution control process such as electrostaticprecipitator + 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 line with the requirements of the “Guidelinesfor Feasible Technologies for Pollution Prevention and Control in Glass Manufacturing Industry” and other documents. In the firsthalf of 2024, 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 enjoyedthe preferential policy of halving environmental tax. The pollutant emissions of many subsidiaries reached and implemented localultra-low emission standards.Emergency response plan system of environment incidentIn accordance with the national requirements, all subsidiaries prepared environmental emergency response plans, organized expertevaluation and filed with the local environmental protection department as required, and conducted the emergency drill againstenvironmental emergency as planned. No major environmental emergency occurred in the first half of 2024.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 thestandard, and reduce pollution emission as much as possible. Many subsidiaries have reached ultra-low emission standards. Allsubsidiaries have made regular emission declarations and paid environmental taxes to the local tax authorities in full and on time inaccordance with the requirements of the Environmental Protection Tax Law.Environmental self-monitoring schemeThe subsidiaries have built and operated on-line monitoring devices for waste water and exhaust gas in accordance with nationallaws 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 tocarry out manual environmental monitoring to comprehensively monitor the pollutant discharge. The monitoring frequency isimplemented in accordance with relevant monitoring technical guidelines or pollutant discharge permits.Administrative penalties caused by environmental protection issues during the report periodNilOther environmental information that should be disclosedNilMeasures taken to reduce carbon emissions during the report period and their effects? Applicable □Not applicableThe Company has continuously strengthened the comprehensive utilization and management of resources and energy, activelyfulfilled the corporate social responsibility, taken various measures to save energy and reduce carbon emissions, making our owncontributions to the national goal of the "dual carbon" goal. The Group Department has specially established an energymanagement team, which was responsible for supervising the energy consumption management of various subsidiaries, andpromoted the energy consumption per unit product and carbon emission per unit product of the Group’s various products to reachthe advanced level in the industry. At present, the energy consumption level of most glass melting furnaces in the flat glassbusiness of CSG has reached the advanced level stipulated by the national standard. At the same time, CSG has always paidattention to the utilization of waste heat in flat glass factories, and the first waste heat power station was put into operation as earlyas 2009, and then all production bases have built waste heat boilers and waste heat power stations; CSG has been activelydeveloping photovoltaic power plants since 2012, and most factories currently have photovoltaic power plants on their roofs. In thefirst half of 2024, CSG Group’s waste heat power generation and photovoltaic power generation totaled about 265 million kWh,equivalent to reducing carbon dioxide emissions by about 151,200 tons.Other relevant environmental protection informationNilEnvironmental incidents in the listed companyIn the first half of 2024, no environmental incidents occurred.
II. Social responsibilityIn the first half of 2024, the Company focused on the following tasks in fulfilling its social responsibilities:
1. Prevent and eliminate occupational hazards and protect employees' health
CSG always adheres to the concept of "Safety First, Environmental Protection First and Green Development", The Group's Safetyand Environmental Protection Department coordinates safety and environmental protection management work, establishes theGroup's three-level control system of safety, environment. The Company has a complete safety management structure and safetymanagement system, strictly implements the safety production responsibility system of all employees, and all employees havesigned the safety production responsibility statement.The Company attaches great importance to the safety training of employees, strictly strengthens the three-level safety educationand training of new employees and the continuing education of old employees, and organizes various special training according tothe characteristics of employees' posts to improve their safety literacy and safety skills. The management of special equipment andspecial operations shall be strictly carried out, and special operators shall work with certificates. Special operations can only becarried out after approval and confirmation of safety measures. Regularly carry out emergency drills, strengthen the construction ofemergency response capabilities, improve emergency response capabilities, eliminate hidden dangers in the bud, and resolutelydefend the last line of defense. Each subsidiary has established a system for the extraction and use of production safety expenses,which is strictly in accordance with the requirements of relevant laws and regulations to extract and standardize the use ofproduction safety expenses. The Company has also carried out various hidden dangers investigation of the headquarters andsubsidiaries, accepted the supervision and inspection of local emergency management departments, and organized the rectificationand improvement of various hidden dangers.In addition, the Company attaches great importance to the standardization construction and operation of safety management. As ofthe end of June 2024, CSG has obtained safety standardization certificates for 18 subsidiaries, of which 5 subsidiaries havereached the second level of safety production standardization, 13 subsidiaries have reached the third level of safety productionstandardization, and a few other subsidiaries are also actively creating and applying.
2. Protect the environment and promote sustainable development
As of the first half of 2024, 9 subsidiaries of CSG have been rated as national-level "Green Factories". The Company continues tostrengthen the comprehensive utilization and management of resources and energy, takes various measures to save energy, reduceemissions and reduce carbon, and makes contributions to the Country's goal of "dual carbon". The Group Department has speciallyestablished an energy management team, which is responsible for supervising the energy consumption management of varioussubsidiaries, and promotes the energy consumption per unit product and carbon emission per unit product of the Group's variousproducts to reach the advanced level in the industry. At present, the energy consumption level of most glass melting furnaces in theflat glass business of CSG has reached the advanced level stipulated by the national standard. The subsidiaries Wujiang CSG andXianning CSG have been successively rated by the Ministry of Industry and Information Technology as "leaders" in energyefficiency in the flat glass industry. Hebei CSG is designated by the Ministry of Industry and Information Technology as theadvanced benchmark "Test Field" of Carbon Peak.At the same time, CSG has always paid attention to the utilization of waste heat in flat glass factories, and each production basehas built waste heat boilers and waste heat power plants; CSG is also actively developing photovoltaic power plants, most ofwhich have photovoltaic power plants on the roofs of factories. In the first half of 2024, the Group's waste heat power generationand photovoltaic power generation totaled about 265 million kWh, equivalent to reducing carbon dioxide emissions by about
151,200 tons.The subsidiary companies of the Group all construct pollution prevention and control facilities in accordance with theenvironmental impact assessment documents and relevant specifications of construction projects, ensuring synchronous operationwith production facilities, and investing a large amount of energy and funds in pollution prevention and control every year. In thefirst half of 2024, the operation of pollution control facilities was good, and the discharge of pollutants was stable and up tostandard. The air pollutant emission concentrations of most of the subsidiaries were lower than 50% of the emission standard andenjoyed the preferential policy of halving environmental tax. The pollutant emissions of many subsidiaries reached andimplemented local ultra-low emission standards. Meanwhile, the subsidiaries built and operated on-line monitoring devices forwaste water and exhaust gas in accordance with national laws and regulations, environmental impact assessment documents ofconstruction 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 comprehensivelymonitor the pollutant discharge. The monitoring frequency was implemented in accordance with relevant monitoring technicalguidelines or pollutant discharge permits. In addition, in accordance with the national requirements, all subsidiaries preparedemergency environmental response plan for environment incident, organized and carried out expert evaluation and filed with thelocal environmental protection department as required, and conducted the emergency drill against environmental incidents asplanned. And there were no major environmental incidents occurred in the first half of 2024.
3. Participate in public welfare undertakings and fulfill social responsibilities
The Company actively participates in social welfare activities, makes donations, organizes employees to voluntarily participate inunpaid blood donation, and fulfills corporate social responsibility. The Subsidiary Wujiang Float won the "OutstandingContribution Unit" of unpaid blood donation in 2023. In the first half of 2024, the Company donated about RMB 200,000 in fundsand materials to various sectors of society for charitable and public welfare activities such as the Red Cross and the Social WelfareInstitute.
4. Adhere to independent research and development to provide better energy-saving productsThe Company has always adhered to the business strategy of independent research and development and innovation leading. In thefirst half of 2024, the Company publicly announced 235 patents for the first time, including 142 authorized patents and 93 publicinvention applications. As of June 30, 2024, the Company had applied for a total of 3,210 patents, including 1,383 inventions,1,814 utility model patents, and 13 designs; a total of 2,361 authorized patents, including 540 inventions, 1,808 utility models, and13 designs, gathering the wisdom of CSG’s R&D team to improve the industrial science and technology.
5. Protect the rights and interests of shareholders and creditors
The Company maintains stable operation. The Company's equity distribution of 2023 had been completed, and the actual cashdividend amount (including tax) was RMB 767,673,027, accounting for 46.37% of the net profit attributable to shareholders oflisted company in 2023, with continuing return to shareholders. In terms of creditor protection, the Company implemented aprudent financial policy, and all due loans were repaid on time, which protected the legitimate rights and interests of creditors.
6. Strengthen welfare security and protect the legitimate rights and interests of employees
The Company insists on standardizing the employment behavior, strictly implements the national and local social securitymechanism, and purchases five insurances and one fund and other comprehensive welfare insurance for employees. It has a fairand unimpeded post promotion system and broaden the development channels of employees. It establishes and implements astatutory leave system for employees, and employees enjoy various statutory holidays and other paid holidays stipulated by thestate. It actively organizes various employee cultural and sports activities, and employees also enjoy benefits such as employeecanteens, employee physical examinations, subsidies and other benefits. It strengthens occupational health monitoring andmanagement to ensure the physical and mental health of employees. It cares for employees in need. In the first half of 2024, theCompany provided nearly RMB 300,000 in assistance to employees and their families, providing collective warmth whenemployees encountered personal difficulties.
7. Social honor recognition
While adhering to our original intention and giving back to society, the Company and its products have received recognition fromall sectors of society. In 40 years since its establishment, the Company's products have been widely used in many major andimportant place. Subsidiary Wujiang Float won the title of "2023 Jiangsu Province Intelligent Manufacturing DemonstrationWorkshop", and subsidiary Dongguan Photovoltaic BIPV won the T?V North German IEC new standard certification. TheCompany was selected as "Top 10 Preferred Brands for Strategic Procurement of Top 100 Real Estate Companies in 2023", "China Preferred Brand for Low-Carbon Building Energy-Saving Glass Procurement in 2023", and won the honorary titles of"China Top 50 Building Materials" and "Preferred Brand of Architectural Glass" for many years in a row, winning praise from allwalks of life with high-quality products and services.
Section VI. Important Events
I. Commitments completed by the actual controllers, the shareholders, the related parties,the purchasers and the Company during the report period and those that hadn’t beencompleted execution by the end of the report period
□Applicable √Not applicable
During the report period, there were no commitments made by the Company's actual controller, shareholders, related parties,acquirers, the Company and other relevant parties that had been fulfilled within the report period and had not been fulfilled withinthe time limit by the end of the report period.II. Particulars about non-operating fund of listed company occupied by controllingshareholder and other related parties
□Applicable √Not applicable
During the report period, there was no any non-operating fund of listed company occupied by controlling shareholder and otherrelated parties.
III. Illegal external guarantee
□Applicable √Not applicable
During the report period, there was no illegal external guarantee.IV. Engaging and dismissing of accounting firm
Whether the semi-annual report has been audited or not
□ Yes √ No
The semi-annual report of the Company has not been audited.
V. Explanation from Board of Directors and Supervisory Committee for “Non-standardaudit report” of the period that issued by accounting firm
□ Applicable √ Not applicable
VI. Explanation from Board of Directors for “Non-standard audit report” of the previousyear
□ Applicable √ Not applicable
VII. Issues related to bankruptcy and reorganization
□ Applicable √ Not applicable
VIII. LawsuitsSignificant lawsuits and arbitrations
√ Applicable □ Not applicable
| Basic information | Amount involved (RMB 0,000) | Recognised as estimated liabilities or not | Progress | Result and impact | Judgement execution | Date of disclosure | Index of disclosure |
| Plaintiff: Zhongshan Runtian Investment Co., Ltd. Defendant: CSG Holding Co., Ltd. Case overview: The plaintiff filed a lawsuit with the court to confirm the resolutions of the General Meeting of Shareholders as invalid. | 0 | No | The first instance judgment had been passed. The plaintiff appealed. | The first instance judgment rejected the lawsuit request of the plaintiff Zhongshan Runtian Investment Co., Ltd. | Not applicable | 1 October 2022 | Announcements on Company Involved Lawsuits on http://www.cninfo.com.cn (Announcement No.: 2022-056) |
| 12 August 2023 | Announcement on the Progress of Companies Involving Litigation on http://www.cninfo.com.cn (Announcement No.: 2023-026) | ||||||
| 25 August 2023 | Announcement on the Progress of Companies Involving Litigation on http://www.cninfo.com.cn (Announcement No.: 2023-027) |
Other lawsuits
□ Applicable √ Not applicable
IX. Penalty and rectification
□ Applicable √ Not applicable
During the report period, there was no penalty or rectification.
X. 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’slargest 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 detailsare as follows:
i. Integrity of the CompanyDuring the report period, it did not exist that the Company failed to perform the effective judgment of the court or owedcomparatively large amount of debt which was overdue. The Company’s integrity was good.ii. The integrity of the Company’s shareholdersThe Company, in accordance with relevant regulations, sent the Letter on Matters Concerning Assistance in Providing MaterialsRequired for the 2024 Semi-annual Report to its largest shareholder Foresea Life Insurance Co., Ltd., shareholder ZhongshanRuntian Investment Co., Ltd., shareholder Chengtai Group Co., Ltd. and shareholder Shenzhen Guanlong Logistics Co., Ltd., byemail on 2 July 2024. These shareholders were asked to examine their own integrity status during the report period, including butnot limited to: whether they failed to perform any effective judgment of the court or owed any comparatively large amount of debtwhich was overdue, etc. These shareholders were asked to provide as appropriate and the Company later received their respectivereplies. To be specific, Zhongshan Runtian, Chengtai Group and Guanlong Logistics all replied “no change” to the question “theintegrity of your company and the actual controller during the report period”. In order to ensure the accuracy of the relevantinformation disclosure, the Company sent an email to the shareholders Zhongshan Runtian, Chengtai Group and GuanlongLogistics on 12 July 2024 with the title Confirmation of Receipt of <Reply to the Letter on Matters Concerning Assistance inProviding Materials Required for the 2024 Semi-annual Report>, asking the said shareholders to further confirm “the integrity ofyour company and the actual controller during the report period” and “whether they owed any comparatively large amount of debtwhich was overdue”. As of the date of disclosure of this Report, the Company has not received any relevant replies fromZhongshan Runtian, Chengtai Group or Guanlong Logistics.Details of the replies from the above-mentioned shareholders in relation to the Letter on Matters Concerning Assistance inProviding Materials Required for the 2024 Semi-annual Report are set out below:
1. Reply from the Company’s largest shareholder Foresea Life Insurance Co., Ltd.: As of 30 June 2024, it did not exist thatForesea Life Insurance Co., Ltd. failed to perform the effective judgment of the court or owed comparatively large amount of debtwhich was overdue.
2. Reply from shareholder Zhongshan Runtian Investment Co., Ltd. on “the integrity of your company and the actual controllerduring the report period”: no change.
3. Reply from shareholder Chengtai Group Co., Ltd. on “the integrity of your company and the actual controller during the reportperiod”: no change.
4. Reply from shareholder Shenzhen Guanlong Logistics Co., Ltd. on “the integrity of your company and the actual controllerduring the report period”: no change.According to the replies from the shareholders Zhongshan Runtian, Chengtai Group and Guanlong Logistics, the integrity status ofthese shareholders and their actual controller, Mr. Yao Zhenhua, can be found in “XIII. Integrity of the Company and itscontrolling shareholders and actual controllers” under “Section VI. Important Events” of the Company’s 2023 Annual Report,which is as set out below:
“The Company has no controlling shareholder and actual controller. According to the disclosure requirements, the Company’slargest shareholder Foresea Life Insurance Co., Ltd., shareholder Zhongshan Runtian Investment Co., Ltd., shareholder ChengtaiGroup Co., Ltd. and Shareholder Shenzhen Guanlong Logistics Co., Ltd. shall disclose the corresponding information. The detailsare as follows:
i. Integrity of the CompanyDuring the report period, it did not exist that the Company failed to perform the effective judgment of the court or owedcomparatively 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 didnot exist that Foresea Life Insurance Co., Ltd. failed to perform the effective judgment of the court or owed comparatively largeamount 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 “ZhongshanRuntian”) 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 jointlyand severally liable for the debt, and its 5.57 million shares of Jonjee High-tech were used as collateral. According to theAnnouncement on the Results of Judicial Disposal of Certain Shares of Shareholder Holding More Than 5% of the Sharesdisclosed 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 RMB160,422,600 and a debt joint and several liability fulfilment amount of RMB 160,422,600.
(2) Due to the case of notarising creditor’s rights documents between Chongqing Xinyu Financial Leasing Co., Ltd. and thedefendants 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 ofRMB260 million, Zhongshan Runtian used its 67.65 million A shares of CSG as collateral. As of June 29, 2022, it has disposed of55,628,900 A shares of CSG, with a total amount of RMB 319,999,300.00. At present, the court has transferred RMB301,717,392.44 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 26,550,000 shares of Jonjee High-tech held byZhongshan Runtian Investment Co., Ltd. have been sold on September 13, 2022, and the amount credited into the account wasRMB 793,755,369.22, which was approximately RMB 90 million different from the debt amount of RMB 882,199,570.79submitted 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 EstateDevelopment Co., Ltd., Shenzhen Jushenghua Co., Ltd., Shenzhen Shum Yip Logistics Group Co., Ltd., Shenzhen BaonengInvestment Group Co., Ltd., Chia Tai (Shenzhen) Development Co., Ltd. and Mr. Yao Zhenhua were jointly and severally liablefor the debt. As of December 31, 2023, it has disposed a total of 11,156,871 shares of Jonjee High-tech; among them, the firstround of freezing of 2,125,605 shares by AVIC Trust Co., Ltd. and the judicial mark of 8,056,410 shares.
(5) Due to the case of execution of notarising creditor’s rights documents between Chongqing International Trust Co., Ltd. andShenzhen Jushenghua Co., Ltd., Zhongshan Runtian, Shenzhen Baoneng Investment Group Co., Ltd. and Mr. Yao Zhenhua, thecourt ruled to seal up and freeze the property of RMB 541 million of Jushenghua, Baoneng Group and Yao Zhenhua, and to freezethe 22 million shares of Jonjee High-tech pledged by Zhongshan Runtian to Chongqing Trust. At present, Chongqing Trust hasapplied for compulsory execution. As of February 2, 2023, it has disposed of 21,025,100 shares of Jonjee High-tech, with a totalamount of RMB 617,383,579.06.
(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 ZhongshanRuntian in “Jonjee High-tech”, the entity subject to enforcement, shall be auctioned off and realised for the purpose of settling thedebt. As the bidder failed to pay the final payment within the prescribed time, according to the Notification of Sale from thePeople’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 Runtianin “Jonjee High-tech” by way of a judicial auction. The 12 million shares have been disposed of for RMB 405,684,000.Notice of auction was received on December 12, 2023: the Futian Court intended to judicially auction 9 million unrestricted publicshares 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 supplementalsecurity.
(7) Due to the case of the loan contract dispute between Zhongshan Runtian and Chongqing Trust Inc., Shenzhen IntermediatePeople’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 byZhongshan 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 off8,329,457 shares held by Zhongshan Runtian in “Jonjee High-tech”. On 11 May 2023, Bank of Communications Financial LeasingCo., Ltd. disposed of the 8,329,457 shares held by Zhongshan Runtian in “Jonjee High-tech” by way of a judicial auction. Theauction proceeds of RMB 284.27 million, which has been used up to pay off RMB 202,451,688.15 in this case, RMB 269,851.69in execution fees, and RMB 50,000 in auxiliary auction fees.
(9) Due to the case of the loan contract dispute between Zhongshan Runtian and Bohai Trust, the Intermediate People's Court ofZhongshan City, Guangdong Province has issued an Execution Ruling, ruling the mandatory realisation of 13.7 million shares heldby the entity subject to enforcement, Zhongshan Runtian, in "Jonjee High-tech". As of June 6, 2023, all 13.7 million shares hadbeen disposed of. The court has disbursed a total of RMB 458,173,319.95 to Bohai Trust, with approximately RMB 10 millionoutstanding. Bohai Trust has initiated separate legal proceedings at the Shenzhen Court of International Arbitration to recover theoutstanding balance and realise the collateral, and the pledge guarantee amounts to RMB 35,504,500. Currently, the case isawaiting a court hearing.
(10) Due to the case of the transfer and buy-back contract dispute between Zhongshan Runtian and Shenzhen Qianhai DongfangVenture, the Intermediate People's Court of Shenzhen Municipality has issued an Execution Ruling, ruling that the property of theentities subject to enforcement, including Shenzhen Hualitong, Zhongshan Runtian, Baoneng Investment and Jushenghua, shouldbe seized, frozen, sequestered, withheld, withdrawn or allocated to the extent of a total amount of RMB 623,102,565.76 (includingRMB 43,513, 215.76 of Zhongshan Runtian Investment Co., Ltd.), as well as interest on the debt during the period of delayedperformance, 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 828,970,067.74, with RMB 821,439,159.19 already enforced. In August 2023, thecourt issued a Reinstatement of Execution Ruling, which ruled to withhold and freeze the bank deposits of the entities subject toenforcement in the sum of RMB 50,943,534.03, a total enforcement fee of RMB 118,343.53, as well as interest, interest on thedebt 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 andShenzhen Jixiang Service, Shenzhen Baotai Honghua applied for enforcement of RMB 1,205,000,000 and interest. In another case,asset disposal resulted in the distribution of disposal proceeds of RMB 356,272,071.65.
(13) Due to the case of the equity pledge dispute between Essence Securities and Zhongshan Runtian, the amount of the litigationis RMB 352,912,928.76. 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 courtin Shenzhen, seeking payment from Zhongshan Runtian for financing funds and interest. The claim in this case amounts to RMB128 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 YipLogistics, Baoneng Investment, Hualitong, and Zhongshan Runtian, judgements have been rendered in the first instance. In CaseNo. (2022) Y. 0303 M.C. 19249, Zhongshan Runtian is held jointly and severally liable for settling the principal of RMB150,000,000 and associated interest. In Case No. (2022) Y. 0303 M.C. 19248, Zhongshan Runtian bears the joint and severalliability for settling the principal of RMB 300,000,000 and interest of RMB 22,500,000 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 200,000,000 andassociated 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 KunshanJuTron New Energy Technology Co., Ltd., Baoneng Investment, Jushenghua, Baoneng Urban Development, Taiyuan Baoju RealEstate, Qianhai Huabao Supply Chain, Zhongshan Runtian, and Ping An Securities, Zhongshan Runtian acts as a guarantor for thedebt 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 ofthe first instance.
(17) Due to the two cases of finance lease contract disputes between Science City (GZ) Financial Leasing Co., Ltd. and QorosAutomotive, Baoneng Investment, Jushenghua, Baoneng Urban Development, Yao Zhenhua, Taiyuan Baoju Real Estate,Chongqing Baoneng Supply Chain, Guangzhou Baoneng Culture Entertainment, Qianhai Huabao Supply Chain, ZhongshanRuntian, and Ping An Securities, the total claim amount is RMB 186 million, and Zhongshan Runtian acts as the guarantor in thecases. 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 ShenzhenBaoneng 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 ShenzhenHua'ai Industrial Development, Baoneng Investment, Jushenghua, Baoneng Urban Development, Yao Zhenhua, Taiyuan BaojuReal Estate, Guangzhou Baoneng Culture Entertainment, Qianhai Huabao Supply Chain, Zhongshan Runtian, and Ping AnSecurities, Zhongshan Runtian acts as a guarantor for the debt of RMB 20.33 million. The case is currently in the first-instancestage.
(20) Due to the case of the finance lease contract dispute between Science City (GZ) Financial Leasing Co., Ltd. and BaonengAutomotive Research and Development, Baoneng Investment, Jushenghua, Baoneng Urban Development, Yao Zhenhua, TaiyuanBaoju Real Estate, Guangzhou Baoneng Culture Entertainment, Qianhai Huabao Supply Chain, Zhongshan Runtian, and Ping AnSecurities, Zhongshan Runtian acts as a guarantor for the debt of RMB 22.38 million. The case is currently in the first-instancestage.
(21) Due to the two cases of finance lease contract disputes between Science City (GZ) Financial Leasing Co., Ltd. and ShenzhenBaoneng Automobile, Qoros Automotive, Baoneng Investment, Jushenghua, Baoneng Urban Development, Zhongshan Runtian,Yao Zhenhua, Tengchong Beihai Wetland, Guangzhou Baoneng Culture Entertainment, Qianhai Huabao Supply Chain, andChuangbang Group, the total claim amount is RMB 142 million, and Zhongshan Runtian acts as the guarantor. The two cases arecurrently in the first-instance stage.
(22) Due to the case of the finance lease contract dispute between Shandong Tongda Financial Leasing Co. Ltd. and ShenzhenBaoneng 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 caseis 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 YipLogistics, 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 ShenzhenHua'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 asfollows:
| Serial number | Borrower | Financial institution | Loan amount (RMB 0,000) | Credit enhancement plan | Start date of loan | Maturity date of loan |
| 1 | Zhongshan Runtian Investment Co., Ltd. | Essence Securities | 4,239.28 | Guarantee+Pledge | 2018/12/27 | 2021/12/26 |
| 2 | Zhongshan Runtian Investment Co., Ltd. | AVIC Trust | 105,000.00 | Guarantee+Pledge | 2019/9/25 | 2021/10/31 |
| Total | 109,239.28 |
Note: As of October 31, 2023, related stocks held by Zhongshan Runtian had been liquidated by AVIC Trust through variouschannels. However, since it is not the first pledgee, the proceeds from liquidation must be retained for withdrawal by the firstpledgee, Essence Securities. AVIC Trust has withdrawn only part of the funds so far. Due to the large number of issues andquantities of trust products, the Company is still negotiating with AVIC Trust on the deduction method for principal and interest,and no solution has been finalized. Therefore, the outstanding loan cannot be adjusted for now. Once a solution is finalized, furtherdisclosure 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 BaoruiReal 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 InvestmentGroup Co., Ltd., Mr. Yao Zhenhua and others signed relevant guarantee contracts, ordering Shenzhen Xinao Trading Co., Ltd. torepay 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 appliedto the Beijing Third Intermediate People’s Court for compulsory execution for notarisation on the matter. Since Mr. Yao Zhenhuaprovided a guarantee for this loan business and signed the relevant notarised documents, he was jointly and severally liable for thedebt of RMB 1,048 million.
(4) As Kunlun Trust Co., Ltd. applied to the court for compulsory execution of the notarising creditor’s rights documents withShum Yip Logistics Group Co., Ltd., Baoneng Century Co., Ltd., Chia Tai (Shenzhen) Development Co., Ltd., Shenzhen BaonengInvestment Group Co., Ltd., Baoneng Holdings (China) Co., Ltd., and Mr. Yao Zhenhua, Mr. Yao Zhenhua assumed joint andseveral 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 InvestmentEnterprise (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 andseveral 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 ShenzhenJushenghua Co., Ltd., Fuzhou Branch of Xiamen International Bank Co., Ltd. applied to Shenzhen Intermediate People’s Court forcompulsory execution. Mr. Yao Zhenhua, as the guarantor of the loan principal of RMB 2.16 billion, signed the correspondingGuarantee 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 FinanceTrust Co., Ltd. applied to Shenzhen Intermediate People’s Court for compulsory execution. Mr. Yao Zhenhua, as the guarantor ofthe loan, signed the corresponding Guarantee Contract and was jointly and severally liable for the debt of RMB 720 million. The26,550,000 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 793,755,369.22, which is about RMB 90 million different from the owed amount of RMB882,199,570.79 submitted to the court by the applicant for execution. Therefore, the case has not been settled for the time being.
(8) Due to the financial debt dispute between China Railway Trust Co., Ltd. and Baoneng Automobile Group Co., Ltd. andKunming Baojun Real Estate Co., Ltd., it applied to Chengdu Intermediate People’s Court of Sichuan Province for compulsoryexecution. As the guarantor of the debt, Mr. Yao Zhenhua signed the corresponding Guarantee Contract and was jointly andseverally liable for the debt of RMB 2,095 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. andKunming Jianpeng Real Estate Development Co., Ltd., it applied to Chengdu Intermediate People’s Court of Sichuan Province forcompulsory execution. Mr. Yao Zhenhua, as the guarantor of the debt, signed the corresponding Guarantee Contract and wasjointly and severally liable for the debt of RMB 836 million. A settlement agreement has been signed in this case and the executionhas been terminated.
(10) Due to the case of notarising creditor’s rights documents between Changan International Trust Co., Ltd. and ShenzhenBaoneng Investment Group Co., Ltd., Wuxi Baoneng Real Estate Co., Ltd., Baoneng Holdings (China) Co., Ltd., ShenzhenJushenghua Co., Ltd., and Mr. Yao Zhenhua, Changan Trust applied for compulsory execution. Mr. Yao Zhenhua, as the guarantorof 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 ShenzhenBaoneng Investment Group Co., Ltd., Wuxi Baoneng Real Estate Co., Ltd., Baoneng Holdings (China) Co., Ltd., ShenzhenJushenghua Co., Ltd., and Mr. Yao Zhenhua, Changan Trust applied for compulsory execution. Mr. Yao Zhenhua, as the guarantorof the debt, was jointly and severally liable for the debt of RMB 1,117 million.
(12) Due to the case of notarising creditor’s rights documents between China Minsheng Trust Co., Ltd. and the defendantsShenzhen Baoneng Investment Group Co., Ltd., Hefei Baohui Real Estate Co., Ltd., Shenzhen Baoneng Enterprise ManagementCo., Ltd., Anhui Baoneng Land Co., Ltd., and Mr. Yao Zhenhua, Minsheng Trust applied for compulsory execution. As theguarantor of the debt, Mr. Yao Zhenhua bore unlimited several and joint liability for the debt of RMB 4,207 million.
(13) Due to the case of notarising creditor’s rights documents between Shanghai Aijian Trust Co., Ltd. and Shenzhen Shum YipLogistics Group Co., Ltd., Shenzhen Baoneng Investment Group Co., Ltd., Chia Tai (Shenzhen) Development Co., Ltd., HefeiBaohui Real Estate Co., Ltd., Hefei Baoneng Real Estate Development Co., Ltd., Shenzhen Jushenghua Co., Ltd., and Mr. YaoZhenhua, Aijian Trust applied to the court for compulsory execution. As the guarantor of the debt, Mr. Yao Zhenhua was jointlyand 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 tothe court for compulsory execution, and Mr. Yao Zhenhua, as the guarantor of the debt, was jointly and severally liable for thedebt of RMB 2,186 million.
(15) Due to the case of notarising creditor’s rights documents between China Minsheng Trust Co., Ltd. and Shenzhen Shum YipLogistics 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 andseverally 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 BaonengInvestment Group Co., Ltd., Shenzhen Jushenghua Co., Ltd. and Mr. Yao Zhenhua, Minsheng Trust applied to the court forcompulsory execution, and Mr. Yao Zhenhua, as the guarantor of the debt, was jointly and severally liable for the debt of RMB2,238 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 WetlandEcotourism Investment Co., Ltd., and Mr. Yao Zhenhua, AVIC Trust applied to the court for compulsory execution, and Mr. YaoZhenhua, as the guarantor of the debt, was jointly and severally liable for the debt of RMB 984 million.
(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 WuhuBaoneng 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 andseverally 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 LogisticsGroup 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 appliedto the court for execution. Mr. Yao Zhenhua, as the guarantor of the debt, was jointly and severally liable for the debt of RMB3,433 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. andBaoneng City Co., Ltd., Baoneng Real Estate Co., Ltd., Baoneng Holdings (China) Co., Ltd., Mr. Yao Zhenhua and ShenzhenLiujin Investment Co., Ltd., the Higher People’s Court of Guangdong Province appointed Shenzhen Intermediate People’s Courtof Guangdong Province to execute the case. Mr. Yao Zhenhua, as the guarantor of the loan contract dispute, was jointly andseverally liable for the lawsuit costs of RMB 13,920,800 arising from the loan contract dispute. The said lawsuit costs have beentransferred and executed.
(21) Due to the loan contract dispute between Shenzhen Branch of Ping An Bank Co., Ltd. and Baoneng City Co., Ltd., BaonengReal Estate Co., Ltd., Baoneng Holdings (China) Co., Ltd., Mr. Yao Zhenhua and Shenzhen Liujin Investment Co., Ltd., ShenzhenBranch of Ping An Bank Co., Ltd. applied to the court for execution. Mr. Yao Zhenhua, as the guarantor of the debt, was jointlyand severally liable for the debt of RMB 5,562 million. In this case, RMB 3,674 million was obtained from auction of residentialunit, and RMB 2,226 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. andShenzhen 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. YaoZhenhua, 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, ShenzhenBaoneng Investment Group Co., Ltd., Shenzhen Jushenghua Co., Ltd., and Shenzhen Shum Yip Logistics Group Co., Ltd. werejointly and severally liable for the lawsuit costs of the loan contract dispute, which was executed by the Lhasa IntermediatePeople’s Court of the Tibet Autonomous Region, Mr. Yao Zhenhua, as the guarantor of the loan contract dispute, was jointly andseverally 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, ShenzhenBaoneng Investment Group Co., Ltd., Shenzhen Jushenghua Co., Ltd. and Shenzhen Shum Yip Logistics Group Co., Ltd. werejointly 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 severalguarantee 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 BaonengUrban Development Co., Ltd., Shenzhen Baoneng Investment Group Co., Ltd., Baoneng Holdings (China) Co., Ltd. and YaoZhenhua, as the guarantor of the debt, Mr. Yao Zhenhua was executed by the Chongqing No. 5 Intermediate People’s Court, andhe was jointly and severally liable for the debt of RMB 2,186 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. hasnot received relevant information on share freezing and lawsuit, and it had no debt with comparatively large amount that had notbeen paid when due.
4. According to the reply of the shareholder Shenzhen Guanlong Logistics Co., Ltd.: As of December 31, 2023, ShenzhenGuanlong Logistics Co., Ltd. has not received relevant information on share freezing and lawsuit, and it had no debt withcomparatively large amount that had not been paid when due.”XI. 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 with financial companies controlled by the company
□ Applicable √ Not applicable
7. Other major related transaction
□ Applicable √ Not applicable
XII. Significant contracts and their implementation
1. Trusteeship, contract 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 0,000
| External guarantees of the Company and its subsidiaries (excluding the guarantees for subsidiaries) | ||||||||||
| Name of guarantee object | Date of disclosure of related announcement on guarantee amount | Guarantee amount | Actual date of guarantee | Actual amount of guarantee | Guarantee type | Collateral (if any) | Counter guarantee circumstance (if any) | Guaranty period | Complete implementation or not | Guarantee for related party or not |
| Total amount of approved external guarantees during the report period (A1) | 0 | Total actual amount of external guarantees during the report period (A2) | 0 | |||||||
| Total amount of approved external guarantees at the end of the report period (A3) | 0 | Total balance of actual external guarantees at the end of the report period (A4) | 0 | |||||||
| Guarantees of the Company for its subsidiaries | ||||||||||
| Name of guarantee object | Date of disclosure of related announcement on guarantee amount | Guarantee amount | Actual date of guarantee | Actual amount of guarantee | Guarantee type | Collateral (if any) | Counter guarantee circumstance (if any) | Guaranty period | Complete implementation or not | Guarantee for related party or not |
| Xianning CSG Photoelectric Glass Co., Ltd. | April 25, 2022 | 6,000 | May 26, 2022 | 2,220 | Joint liability guarantee | None | None | 1 year | No | No |
| Xianning CSG Photoelectric Glass Co., Ltd. | April 25, 2022 | 5,000 | November 25, 2022 | 95 | Joint liability guarantee | None | None | 1 year | Yes | No |
| Xianning CSG Photoelectric Glass Co., Ltd. | April 26, 2023 | 3,500 | May 10, 2024 | 1,500 | Joint liability guarantee | None | None | 1 year | No | No |
| Xianning CSG | April 26, | 5,000 | July 10, | 1,971 | Joint | None | None | 1 year | No | No |
| Energy-Saving Glass Co., Ltd. | 2023 | 2023 | liability guarantee | |||||||
| Xianning CSG Energy-Saving Glass Co., Ltd. | April 25, 2022 | 8,600 | March 17, 2023 | 1,164 | Joint liability guarantee | None | None | 5 year | No | No |
| Xianning CSG Energy-Saving Glass Co., Ltd. | April 26, 2023 | 8,000 | December 21, 2023 | 5,040 | Joint liability guarantee | None | None | 1 year | No | No |
| Xianning CSG Energy-Saving Glass Co., Ltd. | April 26, 2023 | 5,000 | May 09, 2023 | 0 | Joint liability guarantee | None | None | 1 year | Yes | No |
| Yichang CSG Photoelectric Glass Co., Ltd. | April 26, 2023 | 1,800 | April 03, 2024 | 525 | Joint liability guarantee | None | None | 1 year | No | No |
| Yichang CSG Photoelectric Glass Co., Ltd. | April 26, 2023 | 600 | October 17, 2023 | 600 | Joint liability guarantee | None | None | 1 year | No | No |
| Yichang CSG Photoelectric Glass Co., Ltd. | April 26, 2023 | 1,200 | August 14, 2023 | 516 | Joint liability guarantee | None | None | 1 year | No | No |
| Yichang CSG Photoelectric Glass Co., Ltd. | April 25, 2022 | 600 | April 26, 2024 | 0 | Joint liability guarantee | None | None | 2 year | No | No |
| Hebei Panel Glass Co., Ltd. | April 26, 2023 | 5,000 | June 05, 2023 | 500 | Joint liability guarantee | None | None | 1 year | Yes | No |
| Hebei Panel Glass Co., Ltd. | April 26, 2023 | 5,000 | August 9th, 2023 | 837 | Joint liability guarantee | None | None | 1 year | No | No |
| Hebei Panel Glass Co., Ltd. | April 25, 2022 | 2,500 | May 16, 2022 | 0 | Joint liability guarantee | None | None | 3 year | Yes | No |
| Hebei Panel Glass Co., Ltd. | October 30, 2021 | 16,500 | December 17, 2021 | 9,684 | Joint liability guarantee | None | None | 5 year | No | No |
| Hebei CSG Glass Co., Ltd. | April 26, 2023 | 3,000 | May 8, 2023 | 2,795 | Joint liability guarantee | None | None | 1 year | No | No |
| Hebei CSG Glass Co., Ltd. | 2024年04月26日 | 16,000 | June 25, 2024 | 5,811 | Joint liability guarantee | None | None | 1 year | No | No |
| Hebei CSG Glass Co., Ltd. | April 25, 2022 | 2,500 | May 16, 2022 | 0 | Joint liability guarantee | None | None | 3 year | No | No |
| Dongguan CSG Architectural Glass Co., Ltd. | April 26, 2023 | 5,000 | September 18, 2023 | 2,008 | Joint liability guarantee | None | None | 1 year | No | No |
| Dongguan CSG Architectural Glass Co., Ltd. | April 25, 2022 | 10,000 | January 6,2024 | 1,000 | Joint liability guarantee | None | None | 1 year | No | No |
| Xianning CSG Glass Co., Ltd. | April 26, 2023 | 7,000 | July 14,2023 | 6,323 | Joint liability guarantee | None | None | 1 year | No | No |
| Xianning CSG Glass Co., Ltd. | April 26, 2023 | 5,000 | August 16,2023 | 1,422 | Joint liability guarantee | None | None | 4 year | No | No |
| Xianning CSG | April 26, | 5,000 | November | 5,000 | Joint | None | None | 1 year | No | No |
| Glass Co., Ltd. | 2023 | 28,2023 | liability guarantee | |||||||
| Xianning CSG Glass Co., Ltd. | April 26, 2023 | 20,000 | May 24,2024 | 4,000 | Joint liability guarantee | None | None | 1 year | No | No |
| Xianning CSG Glass Co., Ltd. | December 25, 2021 | 15,000 | March 25,2022 | 10,689 | Joint liability guarantee | None | None | 7 year | No | No |
| Xianning CSG Glass Co., Ltd. | April 26, 2023 | 50,000 | June 2,2023 | 33,841 | Joint liability guarantee | None | None | 7 year | No | No |
| Xianning CSG Glass Co., Ltd. | April 26, 2023 | 20,000 | May 30,2024 | 15,676 | Joint liability guarantee | None | None | 1 year | No | No |
| Xianning CSG Glass Co., Ltd. | April 26, 2023 | 12,000 | June 9,2023 | 6,403 | Joint liability guarantee | None | None | 5 year | No | No |
| Xianning CSG Glass Co., Ltd. | June 29, 2021 | 20,000 | July 7,2021 | 6,595 | Joint liability guarantee | None | None | 5 year | No | No |
| Chengdu CSG Glass Co., Ltd. | April 26, 2023 | 5,000 | August 9,2023 | 4,981 | Joint liability guarantee | None | None | 1 year | No | No |
| Chengdu CSG Glass Co., Ltd. | April 26, 2023 | 2,000 | October 7,2023 | 1,800 | Joint liability guarantee | None | None | 1 year | No | No |
| Chengdu CSG Glass Co., Ltd. | April 26, 2023 | 3,000 | September 20,2023 | 1,000 | Joint liability guarantee | None | None | 1 year | No | No |
| Chengdu CSG Glass Co., Ltd. | April 25, 2022 | 10,000 | November 16,2022 | 4,000 | Joint liability guarantee | None | None | 1 year | No | No |
| Chengdu CSG Glass Co., Ltd. | April 26, 2023 | 10,000 | February 28,2024 | 6,213 | Joint liability guarantee | None | None | 1 year | No | No |
| Chengdu CSG Glass Co., Ltd. | April 25, 2022 | 5,000 | November 25,2022 | 1,910 | Joint liability guarantee | None | None | 3 year | No | No |
| Chengdu CSG Glass Co., Ltd. | April 26, 2023 | 5,000 | February 1,2024 | 1,000 | Joint liability guarantee | None | None | 1 year | No | No |
| Chengdu CSG Glass Co., Ltd. | April 26,2023 | 16,437 | May 31,2024 | 750 | Joint liability guarantee | None | None | 6 year | No | No |
| Chengdu CSG Glass Co., Ltd. | April 26,2023 | 3,000 | January 29,2024 | 14 | Joint liability guarantee | None | None | 1 year | No | No |
| Sichuan CSG Energy Conservation Glass Co., Ltd. | April 26,2023 | 3,000 | September 20,2023 | 2,000 | Joint liability guarantee | None | None | 1 year | No | No |
| Sichuan CSG Energy Conservation Glass Co., Ltd. | April 26,2023 | 5,000 | October 7,2023 | 3,000 | Joint liability guarantee | None | None | 1 year | No | No |
| Sichuan CSG Energy | April 26,2023 | 10,000 | September 19,2023 | 0 | Joint liability | None | None | 1 year | No | No |
| Conservation Glass Co., Ltd. | guarantee | |||||||||
| Sichuan CSG Energy Conservation Glass Co., Ltd. | April 26,2023 | 5,000 | December 25,2023 | 0 | Joint liability guarantee | None | None | 1 year | No | No |
| Sichuan CSG Energy Conservation Glass Co., Ltd. | April 26,2023 | 3,000 | February 20,2024 | 185 | Joint liability guarantee | None | None | 1 year | No | No |
| Sichuan CSG Energy Conservation Glass Co., Ltd. | April 26,2024 | 12,000 | June 17,2024 | 9,990 | Joint liability guarantee | None | None | 1 year | No | No |
| Wujiang CSG Glass Co., Ltd. | February 19,2021 | 10,000 | March 12,2021 | 4,317 | Joint liability guarantee | None | None | 4 year | No | No |
| Wujiang CSG Glass Co., Ltd. | April 26,2023 | 10,000 | January 9,2024 | 6,862 | Joint liability guarantee | None | None | 1 year | No | No |
| Wujiang CSG Glass Co., Ltd. | April 26,2023 | 5,000 | May 21,2024 | 49 | Joint liability guarantee | None | None | 1 year | No | No |
| Wujiang CSG Glass Co., Ltd. | April 26,2023 | 6,000 | May 16,2024 | 0 | Joint liability guarantee | None | None | 1 year | No | No |
| Wujiang CSG Glass Co., Ltd. | April 26,2023 | 5,000 | August 9,2023 | 0 | Joint liability guarantee | None | None | 1 year | No | No |
| CSG (Suzhou) Corporate Headquarters Management Co., Ltd. | April 26,2023 | 15,700 | October 8,2023 | 1,070 | Joint liability guarantee | None | None | 5 year | No | No |
| Wujiang CSG East China Architectural Glass Co., Ltd. | April 25,2022 | 3,000 | March 7,2023 | 0 | Joint liability guarantee | None | None | 1 year | Yes | No |
| Wujiang CSG East China Architectural Glass Co., Ltd. | April 26,2023 | 10,000 | January 9,2024 | 5,500 | Joint liability guarantee | None | None | 1 year | No | No |
| Wujiang CSG East China Architectural Glass Co., Ltd. | April 26,2023 | 5,000 | April 1,2024 | 0 | Joint liability guarantee | None | None | 1 year | No | No |
| Wujiang CSG East China Architectural Glass Co., Ltd. | April 25,2022 | 12,400 | May 26,2022 | 2,671 | Joint liability guarantee | None | None | 5 year | No | No |
| Wujiang CSG East China Architectural Glass Co., Ltd. | April 26,2023 | 6,000 | May 16,2024 | 0 | Joint liability guarantee | None | None | 1 year | No | No |
| Wujiang CSG East China Architectural | April 26,2023 | 5,000 | March 21,2024 | 1,300 | Joint liability guarantee | None | None | 1 year | No | No |
| Glass Co., Ltd. | ||||||||||
| Wujiang CSG East China Architectural Glass Co., Ltd. | April 26,2023 | 5,000 | April 29,2024 | 1,797 | Joint liability guarantee | None | None | 1 year | No | No |
| Dongguan CSG Solar Glass Co., Ltd. | April 26,2023 | 5,000 | August 9,2023 | 4,819 | Joint liability guarantee | None | None | 1 year | No | No |
| Dongguan CSG Solar Glass Co., Ltd. | April 25,2022 | 4,000 | July 21,2022 | 1,602 | Joint liability guarantee | None | None | 5 year | No | No |
| Anhui CSG New Energy Material Technology Co., Ltd. | April 26,2024 | 33,000 | June 30,2024 | 0 | Joint liability guarantee | None | None | 1 year | No | No |
| Guangxi CSG New Energy Material Technology Co., Ltd. | April 26,2024 | June 30,2024 | 0 | Joint liability guarantee | None | None | 1 year | No | No | |
| Zhaoqing CSG Energy-Saving Glass Co., Ltd. | April 26,2024 | June 30,2024 | 3,363 | Joint liability guarantee | None | None | 1 year | No | No | |
| Zhaoqing CSG Energy-Saving Glass Co., Ltd. | April 26,2023 | February 27,2024 | 0 | Joint liability guarantee | None | None | 5 year | No | No | |
| Dongguan CSG Photovoltaic Technology Co., Ltd. | April 26,2024 | June 30,2024 | 1,092 | Joint liability guarantee | None | None | 1 year | No | No | |
| Dongguan CSG Architectural Glass Co., Ltd. | April 26,2024 | June 30,2024 | 0 | Joint liability guarantee | None | None | 1 year | No | No | |
| Dongguan CSG Solar Glass Co., Ltd. | April 26,2024 | June 30,2024 | 3,137 | Joint liability guarantee | None | None | 1 year | No | No | |
| Dongguan CSG Solar Glass Co., Ltd. | April 25,2022 | 9,000 | May 31,2022 | 4,779 | Joint liability guarantee | None | None | 4 year | No | No |
| Qingyuan CSG Energy-Saving New Materials Co., Ltd. | April 26,2023 | 6,000 | December 27,2023 | 300 | Joint liability guarantee | None | None | 1 year | No | No |
| Qingyuan CSG Energy-Saving New Materials Co., Ltd. | April 26,2023 | 10,000 | January 5,2024 | 431 | Joint liability guarantee | None | None | 1 year | No | No |
| Qingyuan CSG Energy-Saving New Materials Co., Ltd. | April 25,2022 | 37,400 | August 4,2022 | 0 | Joint liability guarantee | None | None | 5 year | Yes | No |
| Qingyuan CSG Energy-Saving New Materials Co., Ltd. | April 26,2023 | 5,000 | June 4,2024 | 0 | Joint liability guarantee | None | None | 3 year | No | No |
| Qingyuan CSG Energy-Saving | April 25,2022 | 10,000 | April 24,2023 | 6,961 | Joint liability | None | None | 1 year | No | No |
| New Materials Co., Ltd. | guarantee | |||||||||
| Yichang CSG Display Co., Ltd. | April 26,2023 | 1,800 | March 6,2024 | 1,047 | Joint liability guarantee | None | None | 1 year | No | No |
| Yichang CSG Display Co., Ltd. | April 25,2022 | 600 | February 24,2023 | 600 | Joint liability guarantee | None | None | 1 year | Yes | No |
| Yichang CSG Display Co., Ltd. | April 25,2022 | 3,000 | June 24,2022 | 2,600 | Joint liability guarantee | None | None | 1 year | No | No |
| Yichang CSG Polysilicon Co., Ltd. | April 26,2023 | 1,000 | November 28,2023 | 0 | Joint liability guarantee | None | None | 1 year | No | No |
| Yichang CSG Polysilicon Co., Ltd. | April 26,2023 | 13,000 | January 16,2024 | 3,387 | Joint liability guarantee | None | None | 4 year | No | No |
| Tianjin CSG Energy-Saving Glass Co., Ltd. | April 26,2023 | 3,000 | April 16,2024 | 538 | Joint liability guarantee | None | None | 1 year | No | No |
| Tianjin CSG Energy-Saving Glass Co., Ltd. | April 26,2023 | 5,000 | July 10,2023 | 1,000 | Joint liability guarantee | None | None | 1 year | No | No |
| Tianjin CSG Energy-Saving Glass Co., Ltd. | April 26,2023 | 3,000 | August 11,2023 | 500 | Joint liability guarantee | None | None | 1 year | No | No |
| Tianjin CSG Energy-Saving Glass Co., Ltd. | February 19,2021 | 7,000 | March 23,2021 | 3,103 | Joint liability guarantee | None | None | 4 year | No | No |
| Tianjin CSG Energy-Saving Glass Co., Ltd. | April 26,2023 | 2,000 | August 10,2023 | 700 | Joint liability guarantee | None | None | 1 year | No | No |
| Anhui CSG New Energy Material Technology Co., Ltd. | August 10,2021 | 55,000 | October 19,2021 | 42,203 | Joint liability guarantee | None | None | 6 year | No | No |
| Anhui CSG New Energy Material Technology Co., Ltd. | August 10,2021 | 180,000 | August 28,2021 | 99,828 | Joint liability guarantee | None | None | 7 year | No | No |
| Anhui CSG New Energy Material Technology Co., Ltd. | April 25,2022 | 35,000 | July 5,2022 | 25,850 | Joint liability guarantee | None | None | 3 year | No | No |
| Anhui CSG New Energy Material Technology Co., Ltd. | April 25,2022 | 20,000 | February 6,2023 | 7,832 | Joint liability guarantee | None | None | 3 year | No | No |
| Anhui CSG New Energy Material Technology Co., Ltd. | April 26,2023 | 30,000 | May 10,2023 | 13,146 | Joint liability guarantee | None | None | 1 year | No | No |
| Anhui CSG New Energy Material Technology Co., Ltd. | December 25,2021 | 50,000 | March 30,2022 | 28,072 | Joint liability guarantee | None | None | 9 year | No | No |
| Anhui CSG New | April 26,2024 | 10,000 | June | 0 | Joint | None | None | 1 year | No | No |
| Energy Material Technology Co., Ltd. | 20,2024 | liability guarantee | ||||||||
| Anhui CSG New Energy Material Technology Co., Ltd. | April 26,2023 | 10,000 | August 30,2023 | 2,000 | Joint liability guarantee | None | None | 1 year | No | No |
| Anhui CSG Silicon Valley Mingdu Mining Development Co., Ltd. | April 26,2023 | 43,379 | July 6,2023 | 39,000 | Joint liability guarantee | None | None | 10 year | No | No |
| Anhui CSG Quartz Materials Co., Ltd. | June 29,2021 | 9,000 | September 13,2021 | 4,696 | Joint liability guarantee | None | None | 5 year | No | No |
| Anhui CSG Quartz Materials Co., Ltd. | April 26,2023 | 5,000 | March 25,2024 | 4,980 | Joint liability guarantee | None | None | 3 year | No | No |
| Anhui CSG Quartz Materials Co., Ltd. | April 26,2024 | 1,000 | June 27,2024 | 1,000 | Joint liability guarantee | None | None | 1 year | No | No |
| Anhui CSG Quartz Materials Co., Ltd. | April 26,2023 | 4,000 | July 19,2023 | 0 | Joint liability guarantee | None | None | 1 year | No | No |
| Guangxi CSG Quartz Materials Co., Ltd. | April 26,2023 | 27,400 | July 6,2023 | 7,200 | Joint liability guarantee | None | None | 8 year | No | No |
| Guangxi CSG Mining Co., Ltd. | April 26,2023 | July 6,2023 | 7,800 | Joint liability guarantee | None | None | 8 year | No | No | |
| Guangxi CSG Mining Co., Ltd. | April 26,2023 | 10,000 | June 7,2023 | 0 | Joint liability guarantee | None | None | 5 year | No | No |
| Guangxi CSG Quartz Materials Co., Ltd. | April 26,2023 | 10,000 | June 7,2023 | 0 | Joint liability guarantee | None | None | 5 year | No | No |
| Guangxi CSG Quartz Materials Co., Ltd. | April 25,2022 | 30,000 | April 4,2023 | 3,207 | Joint liability guarantee | None | None | 3 year | No | No |
| Guangxi CSG Quartz Materials Co., Ltd. | April 25,2022 | 30,000 | June 11,2022 | 9,900 | Joint liability guarantee | None | None | 3 year | No | No |
| Guangxi CSG Quartz Materials Co., Ltd. | April 25,2022 | 50,000 | July 26,2022 | 15,000 | Joint liability guarantee | None | None | 8 year | No | No |
| Guangxi CSG Quartz Materials Co., Ltd. | April 25,2022 | 80,000 | July 26,2022 | 54,000 | Joint liability guarantee | None | None | 8 year | No | No |
| Guangxi CSG Quartz Materials Co., Ltd. | April 26,2023 | 14,500 | May 31,2024 | 0 | Joint liability guarantee | None | None | 1 year | No | No |
| Guangxi CSG Quartz Materials Co., Ltd. | April 26,2023 | 12,000 | March 13,2024 | 500 | Joint liability guarantee | None | None | 1 year | No | No |
| Xi'an CSG Energy Saving Glass Technology | April 25,2022 | 34,400 | March 27,2023 | 16,878 | Joint liability guarantee | None | None | 7 year | No | No |
| Co., Ltd. | ||||||||||
| Xi'an CSG Energy Saving Glass Technology Co., Ltd. | April 26,2023 | 3,000 | March 6,2024 | 0 | Joint liability guarantee | None | None | 1 year | No | No |
| Qinghai CSG New Energy Technology Co., Ltd. | April 26,2023 | 150,000 | September 26,2023 | 30,000 | Joint liability guarantee | None | None | 8 year | No | No |
| Qinghai CSG New Energy Technology Co., Ltd. | April 26,2023 | 69,997 | January 24,2024 | 45,823 | Joint liability guarantee | None | None | 6 year | No | No |
| Qinghai CSG New Energy Technology Co., Ltd. | April 26,2023 | 20,000 | June 18,2024 | 0 | Joint liability guarantee | None | None | 1 year | No | No |
| Qinghai CSG New Energy Technology Co., Ltd. | April 26,2023 | 50,000 | October 31,2023 | 47,129 | Joint liability guarantee | None | None | 7 year | No | No |
| Zhaoqing CSG New Energy Technology Co., Ltd. | April 25,2022 | 1,530 | April 6,2023 | 1,138 | Joint liability guarantee | None | None | 7 year | No | No |
| Anhui CSG Photovoltaic Energy Co., Ltd. | April 26,2023 | 10,040 | April 27,2023 | 5,398 | Joint liability guarantee | None | None | 7 year | No | No |
| Xianning CSG Photovoltaic Energy Co., Ltd. | April 26,2023 | 3,000 | April 8,2024 | 671 | Joint liability guarantee | None | None | 9 year | No | No |
| Zhanjiang CSG New Energy Co., Ltd. | April 25,2022 | 1,000 | March 28,2023 | 900 | Joint liability guarantee | None | None | 5 year | No | No |
| Zhaoqing CSG Energy-Saving Glass Co., Ltd. | April 25,2022 | 5,000 | May 30,2022 | 0 | Joint liability guarantee | None | None | 3 year | No | No |
| Zhaoqing CSG Energy-Saving Glass Co., Ltd. | September 22,2020 | 34,000 | September 25,2020 | 20,995 | Joint liability guarantee | None | None | 5 year | No | No |
| Dongguan CSG Architectural Glass Co., Ltd. | April 26, 2023 | 48,000 | August 7,2023 | 587 | Joint liability guarantee | None | None | 1 year | No | No |
| Dongguan CSG Solar Glass Co., Ltd. | April 26, 2023 | August 7,2023 | 0 | Joint liability guarantee | None | None | 1 year | No | No | |
| Dongguan CSG PV-tech Co., Ltd. | April 26, 2023 | August 7,2023 | 1,252 | Joint liability guarantee | None | None | 1 year | No | No | |
| Anhui CSG New Energy Material Technology Co., Ltd. | April 26, 2023 | August 7,2023 | 3,104 | Joint liability guarantee | None | None | 1 year | No | No | |
| Wujiang CSG Glass Co., Ltd. | April 26, 2023 | August 7,2023 | 0 | Joint liability guarantee | None | None | 1 year | No | No | |
| Chengdu CSG | April 26, | August | 0 | Joint | None | None | 1 year | No | No |
| Glass Co., Ltd. | 2023 | 7,2023 | liability guarantee | |||||||
| Sichuan CSG Energy Conservation Glass Co., Ltd. | April 26, 2023 | August 7,2023 | 236 | Joint liability guarantee | None | None | 1 year | No | No | |
| Yichang CSG Polysilicon Co., Ltd. | April 26, 2023 | August 7,2023 | 6,161 | Joint liability guarantee | None | None | 1 year | No | No | |
| Xianning CSG Glass Co., Ltd. | April 26, 2023 | August 7,2023 | 0 | Joint liability guarantee | None | None | 1 year | No | No | |
| Xianning CSG Glass Co., Ltd. | April 26, 2023 | August 7,2023 | 206 | Joint liability guarantee | None | None | 1 year | No | No | |
| Wujiang CSG East China Architectural Glass Co., Ltd. | April 26, 2023 | August 7,2023 | 852 | Joint liability guarantee | None | None | 1 year | No | No | |
| Tianjin CSG Energy-Saving Glass Co., Ltd. | April 26, 2023 | August 7,2023 | 2,472 | Joint liability guarantee | None | None | 1 year | No | No | |
| Zhaoqing CSG Energy-Saving Glass Co., Ltd. | April 26, 2023 | August 7,2023 | 0 | Joint liability guarantee | None | None | 1 year | No | No | |
| Total amount of approved guarantees for subsidiaries during the report period (B1) | 72,000 | Total actual amount of guarantees for subsidiaries during the report period (B2) | 128,141 | |||||||
| Total amount of approved guarantees for subsidiaries at the end of the report period (B3) | 1,696,883 | Total balance of actual guarantees for subsidiaries at the end of the report period (B4) | 771,404 | |||||||
| Guarantees of subsidiaries for their subsidiaries | ||||||||||
| Name of guarantee object | Date of disclosure of related announcement on guarantee amount | Guarantee amount | Actual date of guarantee | Actual amount of guarantee | Guarantee type | Collateral (if any) | Counter guarantee circumstance (if any) | Guaranty period | Complete implementation or not | Guarantee for related party or not |
| Total amount of approved guarantees for subsidiaries during the report period (C1) | 0 | Total actual amount of guarantees for subsidiaries during the report period (C2) | 0 | |||||||
| Total amount of approved guarantees for subsidiaries at the end of the report period (C3) | 0 | Total balance of actual guarantees for subsidiaries at the end of the report period (C4) | 0 | |||||||
| Total amount of the Company’s guarantees (i.e., the sum of the first three items) | ||||||||||
| Total amount of approved guarantees during the report period (A1+B1+C1) | 72,000 | Total actual amount of guarantees during the report period (A2+B2+C2) | 128,141 | |||||||
| Total amount of approved guarantees at the end of the report period (A3+B3+C3) | 1,696,883 | Total actual balance of guarantees at the end of the report period (A4+B4+C4) | 771,404 | |||||||
| The proportion of total actual amount of guarantees ((i.e., A4+B4+C4) in the net assets of the Company | 55.02% | |||||||||
| Including: | ||||||||||
| Balance of guarantees provided for shareholders, actual controllers and its related parties (D) | 0 | |||||||||
| Balance of debt guarantees provided directly or indirectly for guaranteed objects with an asset-liability ratio exceeding 70% (E) | 19,222 | |||||||||
| The amount of guarantees exceeding 50% of the net assets (F) | 0 | |||||||||
| Total guarantee amount of the above three items (D+E+F) | 19,222 |
| Explanation on guarantee responsibility incurred in the report period or evidence showing the description of the possible joint and several liabilities for repayment for the guarantee contracts not yet due (if any) | Nil |
| Explanation on providing external guarantees in violation of prescribed procedures (if any) | Nil |
Note: 1. The 2023 Annual General Meeting of the Company reviewed and passed the Proposal for the 2024 Guarantee Plan, andapproved the Company and its subsidiaries to provide guarantees in a total amount of not exceeding RMB 24,400 million(including the effective and unexpired amount) for the 2024 credit lines from financial institutions to guaranteed entities within thescope of consolidated statements. Among them, the total amount of guarantees for all guaranteed entities with asset liability ratioof 70% or above shall not exceed the equivalent amount of RMB 2,000 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 30 June2024, the actual guarantee balance was RMB 7,714.04 million (of which the actual guarantee balance with liability/asset ratio of70% or above was RMB 192.22 million), accounting for 54.90% of the parent company’s audited net assets of RMB 14,050.8402million at the end of 2023, and 25.41% of the audited net assets of RMB 30,362.06 million. The Company has no overdueguarantee.
2. The Company’s 2022 Annual General Meeting reviewed and passed the Proposal on the Development of Asset Pool Business in2023. In order to achieve the overall management of the Company’s assets such as bills and letters of credit, the General Meetingof Shareholders approved the Company and its subsidiaries to conduct asset pool business of no more than RMB 1.6 billion. Underthe 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 June 30, 2024, the actual pledge amount of theasset pool business was RMB 1,284.04 million, and the financing balance was RMB 1,263.04 million.Explanation on compound guaranteesNil
3. Entrusted Financing
□Applicable √ Not applicable
In the report period, there was no entrusted financing.
4. Other material contracts
√ Applicable □ Not applicable
| Name of signing entity on the Company’s side | Name of counterparty | Subject matter | Contract signing date | Pricing principle | Transaction amount (RMB 0,000) | Related-party transaction or not | Association | Execution as of the end of the report period | Date of disclosure | Disclosure index |
| Wujiang CSG Glass Co., Ltd., | LONGi Solar Technology Ltd., Zhejiang LONGi Solar Technology Ltd., Taizhou | Photovoltaic glass | 31 July 2020 | Price negotiated on a monthly basis | _ | No | Nil | In progress | 3 August 2020 | Announcement No.: |
| and Dongguan CSG Solar Glass Co., Ltd. | LONGi Solar Technology Ltd., Yinchuan LONGi Solar Technology Ltd., Chuzhou LONGi Solar Technology Ltd., Datong LONGi Solar Technology Ltd., LONGi (H.K.) Trading Limited, LONGi (KUCHING) SDN. BHD., Xianyang LONGi Solar Technology Ltd., Jiangsu LONGi Solar Technology Ltd., Jiaxing LONGi Solar Technology Ltd., and Xi’an LONGi Green Building Technology Ltd. | according to market conditions | 2020-060 | |||||||
| CSG Holding Co., Ltd. | Trina Solar Co., Ltd. | High-purity silicon | 13 September 2022 | Price of high-purity silicon negotiated on a monthly basis according to contractually agreed pricing principles | _ | No | Nil | In progress | 14 September 2022 | Announcement No.: 2022-054 |
| CSG Holding Co., Ltd. | Two certain customers | Solar grade primary polysilicon | 27 October 2022 | Price negotiated on a monthly basis according to contractually agreed pricing principles | _ | No | Nil | In progress | 29 October 2022 | Announcement No.: 2022-060 |
| CSG Holding Co., Ltd. | One certain customer | Solar grade primary polysilicon | 17 April 2023 | Price negotiated on a monthly basis according to contractually agreed pricing principles | _ | No | Nil | Yet to be executed | 19 April 2023 | Announcement No.: 2023-011 |
Note: The above material contracts are long-term sales contracts signed between the Company and customers. A total supplyvolume is given in such a contract, the specific price is negotiated on a monthly basis, and the total contract amount is subject tothe final transaction amount.XIII. 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 forRegistration and Issuance of Medium-Term Notes and Ultra-short-term Financing Bills", which agreed that the Company wouldregister and issue ultra-short-term financing bills with a registered amount of not more than RMB 1 billion, The Company can issueone 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 acceptthe 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 forRegistration and Issuance of Medium-term Notes and Ultra-short-term Financing Bills", which agreed that the Company wouldregister and issue medium-term notes with a registered amount of not more than RMB 2 billion. Actual capital needs and inter-bankmarket capital status, can be issued one or more times within the validity period of registration. On October 30, 2023, the DealersAssociation held its 128th registration meeting for 2023 and decided to accept the registration of medium-term notes with a totalvalue of RMB 2 billion and a validity period of two years.
3. 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 lawsuitagainst Zeng Nan and others and Yichang Hongtai Real Estate Co., Ltd. on December 15, 2021, and Shenzhen IntermediatePeople's Court officially accepted it on January 28, 2022. The first trial of the case was completed in Shenzhen IntermediatePeople's Court on June 21, 2022. On 4 June 2024, the Company received the Civil Judgment of the first instance issued byShenzhen Intermediate People's Court, which rejected all of the Company's litigation requests. In June 2024, the Company filed anappeal to Guangdong Higher People's Court, and the case is currently in the process of the second instance.
4. 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 director/supervisor, before the re-elected director/supervisor assumes his/her office, the former director/supervisor shall still perform the duties of adirector/supervisor in accordance with the provisions of laws, administrative regulations, departmental rules and the Articles ofAssociation. Therefore, the members of the ninth Board of Directors and Supervisory Committee are still performing their dutiesin a normal manner, and the re-election of the Board of Directors and the Supervisory Committee would not have any adverseimpact on the Company’s operation and governance.XIV. Significant events of subsidiaries of the Company
□ Applicable √ Not applicable
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 | |||||||
| Amount | Proportion | New shares issued | Bonus shares | Capitalization of public reserve | Others | Subtotal | Amount | Proportion | |
| I. Restricted shares | 2,043,402 | 0.07% | 2,043,402 | 0.07% | |||||
| 1. State-owned shares | |||||||||
| 2. State-owned legal person’s shares | |||||||||
| 3. Other domestic shares | 2,043,402 | 0.07% | 2,043,402 | 0.07% | |||||
| Including: Domestic legal person’s shares | |||||||||
| Domestic natural person’s shares | 2,043,402 | 0.07% | 2,043,402 | 0.07% | |||||
| 4. Foreign shares | |||||||||
| Including: Foreign legal person’s shares | |||||||||
| Foreign natural person’s shares | |||||||||
| II. Unrestricted shares | 3,068,648,705 | 99.93% | 3,068,648,705 | 99.93% | |||||
| 1. RMB Ordinary shares | 1,959,279,645 | 63.80% | 1,959,279,645 | 63.80% | |||||
| 2. Domestically listed foreign shares | 1,109,369,060 | 36.13% | 1,109,369,060 | 36.13% | |||||
| 3. Overseas listed foreign shares | |||||||||
| 4. Others | |||||||||
| III. Total shares | 3,070,692,107 | 100.00% | 0 | 0 | 0 | 0 | 0 | 3,070,692,107 | 100.00% |
Reason for equity changes
□Applicable √Not applicable
Approval on equity changes
□Applicable √Not applicable
Transfer of ownership for equity changes
□Applicable √Not applicable
Implementation progress of share buyback
□Applicable √Not applicable
Implementation progress of share buyback reduction through centralized bidding
□Applicable √Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to commonshareholders 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
II. Issuance and listing of Securities
□ Applicable √ Not applicable
III. Amount of shareholders of the Company and particulars about shares holding
Unit: share
| Total amount of shareholders at the end of the report period | 147,717 | Total amount of the preferred shareholders who have resumed the voting right at end of report period (if applicable) | 0 | ||||||
| Shareholder with above 5% shares held or top ten shareholders（Excluding shares lent through refinancing） | |||||||||
| Full name of Shareholders | Nature of shareholder | Proportion of shares held | Total shares held at the end of report period | Changes in report period | Amount of restricted shares held | Amount of un-restricted shares held | Number of share pledged/frozen | ||
| Share status | Amount | ||||||||
| Foresea Life Insurance Co., Ltd. – HailiNiannian | Domestic non state-owned legal person | 15.19% | 466,386,874 | 0 | 0 | 466,386,874 | |||
| # Shenzhen Sigma C&T Co., Ltd. | Domestic non state-owned legal person | 3.92% | 120,385,406 | 48,081,571 | 0 | 120,385,406 | |||
| Foresea Life Insurance Co., Ltd. – Universal Insurance Products | Domestic non state-owned legal person | 3.86% | 118,425,007 | 0 | 0 | 118,425,007 | |||
| Foresea Life Insurance Co., Ltd. – Own Fund | Domestic non state-owned legal person | 2.11% | 64,765,161 | 0 | 0 | 64,765,161 | |||
| China Galaxy International Securities (Hong Kong) Co., Limited | Foreign legal person | 1.34% | 41,034,578 | 0 | 0 | 41,034,578 | |||
| Hong Kong Securities Clearing Co., Ltd. | Foreign legal person | 0.73% | 22,421,087 | -3,775,027 | 0 | 22,421,087 | ||||
| Zhongshan Runtian Investment Co., Ltd. | Domestic non state-owned legal person | 0.62% | 18,983,447 | 0 | 0 | 18,983,447 | Pledged | 18,980,000 | ||
| Marked | 18,980,000 | |||||||||
| Frozen | 3,447 | |||||||||
| China Merchants Securities (Hong Kong) Limited | Foreign legal person | 0.61% | 18,825,211 | -15,284,626 | 0 | 18,825,211 | ||||
| VANGUARD EMERGING MARKETS STOCK INDEX FUND | Foreign legal person | 0.57% | 17,643,373 | -1,952,200 | 0 | 17,643,373 | ||||
| VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND | Foreign legal person | 0.57% | 17,537,213 | 0 | 0 | 17,537,213 | ||||
| Strategic investors or general legal person becomes top 10 shareholders due to shares issued (if applicable) | N/A | |||||||||
| Explanation on associated relationship among the aforesaid shareholders | 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., which holds 51% equity of Foresea Life Insurance Co., Ltd., 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 40,187,904 shares through China Galaxy International Securities (Hong Kong) Co., Limited. | |||||||||
| Explanation of the above-mentioned shareholders involving entrusted/entrusted voting rights and abstention from voting right | N/A | |||||||||
| Special instructions on the existence of special repurchase account among the top 10 shareholders (if any) | N/A | |||||||||
| Particulars about top ten shareholders with unrestricted shares held （Excluding shares lent through refinancing and executive lock-in shares） | ||||||||||
| Shareholders’ name | Amount of unrestricted shares held at year-end | Type of shares | ||||||||
| Type | Amount | |||||||||
| Foresea Life Insurance Co., Ltd. – HailiNiannian | 466,386,874 | RMB ordinary shares | 466,386,874 | |||||||
| # Shenzhen Sigma C&T Co., Ltd. | 120,385,406 | RMB ordinary shares | 120,385,406 | |||||||
| Foresea Life Insurance Co., Ltd. – Universal Insurance Products | 118,425,007 | RMB ordinary shares | 118,425,007 | |||||||
| Foresea Life Insurance Co., Ltd. – Own Fund | 64,765,161 | RMB ordinary shares | 64,765,161 | |||||||
| China Galaxy International Securities (Hong Kong) Co., Limited | 41,034,578 | Domestically listed foreign shares | 41,034,578 | |||||||
| Hong Kong Securities Clearing Co., Ltd. | 22,421,087 | RMB ordinary shares | 22,421,087 | |||||||
| Zhongshan Runtian Investment Co., Ltd. | 18,983,447 | RMB ordinary shares | 18,983,447 | |||||||
| China Merchants Securities (Hong Kong) Limited | 18,825,211 | Domestically listed foreign shares | 18,825,211 | |||||||
| VANGUARD EMERGING MARKETS STOCK INDEX FUND | 17,643,373 | Domestically listed foreign shares | 17,643,373 | |
| VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND | 17,537,213 | Domestically listed foreign shares | 17,537,213 | |
| Statement on associated relationship or consistent action among the above shareholders: | 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., which holds 51% equity of Foresea Life Insurance Co., Ltd., 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 40,187,904 shares through China Galaxy International Securities (Hong Kong) Co., Limited. | |||
| Explanation on shareholders involving margin business (if applicable) | 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 120,385,406 shares of the Company through the customer credit transaction guarantee securities account of Huatai Securities Co., Ltd., totaling 120,385,406 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 August3, 2022, at the Company's Third Extraordinary General Meeting in 2022, Foresea Life Insurance Co., Ltd. voted in favor of allproposals, and Zhongshan Runtian Investment Co., Ltd. voted against all proposals.Top 10 shareholders involved in refinancing shares lending
□ Applicable √ Not applicable
The top 10 shareholders and the top 10 shareholders of unlimited outstanding shares have changed from the previous period due torefinancing lending/restitution reasons
□ Applicable √ Not applicable
Whether the company’s top 10 common shareholders and the top 10 shareholders of ordinary shares subject to unlimited saleshave 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 notengage in any agreed repurchase transactions during the reporting period.IV. Changes in the shareholding of directors, supervisors and senior executives
□ Applicable √ Not applicable
The shareholding situation of the Company's directors, supervisors and senior managers did not change during the reporting period,which can be detailed in the 2023 annual report.V. Changes of controlling shareholder or actual controllerChanges of controlling shareholders in the report period
□Applicable √ Not applicable
Changes of actual controller in the report period
□Applicable √ Not applicable
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.
Section X. Financial ReportI. Report of the auditorsWhether the Semi-annual Report has been audited or not
□ Yes √ No
The Company's Semi-annual Report has not been audited.
II. Financial statementsAll amounts in the tables in the Notes to the Financial Statements are expressed in RMB.
1. Consolidated balance sheet
Prepared by: CSG Holding Co., Ltd.
30 June 2024
Unit: RMB
| Item | 30 June 2024 | 1 January 2024 |
| Current assets： | ||
| Cash at bank and on hand | 3,619,278,955 | 3,076,774,218 |
| Notes receivable | 1,569,125,486 | 1,593,520,494 |
| Accounts receivable | 1,845,881,636 | 1,881,796,408 |
| Receivables Financing | 622,130,245 | 529,945,623 |
| Advances to suppliers | 120,163,652 | 155,476,645 |
| Other receivables | 173,913,608 | 177,957,033 |
| Inventories | 1,978,742,256 | 1,590,224,795 |
| Non-current assets due within one year | 84,191,224 | |
| Other current assets | 413,804,979 | 352,066,698 |
| Total current assets | 10,343,040,817 | 9,441,953,138 |
| Non-current assets： | ||
| Investment properties | 292,711,858 | 290,368,105 |
| Fixed assets | 12,785,878,380 | 13,145,568,631 |
| Construction in progress | 5,860,245,516 | 4,325,016,420 |
| Right-of-use assets | 20,668,967 | 21,637,628 |
| Intangible assets | 2,420,861,237 | 2,490,530,224 |
| Goodwill | 8,593,352 | 8,593,352 |
| Long-term prepaid expenses | 19,903,233 | 18,764,429 |
| Deferred tax assets | 284,259,290 | 223,025,031 |
| Other non-current assets | 232,792,856 | 396,600,354 |
| Total non-current assets | 21,925,914,689 | 20,920,104,174 |
| Total assets | 32,268,955,506 | 30,362,057,312 |
| Current liabilities： |
| Item | 30 June 2024 | 1 January 2024 |
| Short-term borrowings | 288,350,882 | 436,853,583 |
| Notes payable | 2,509,626,956 | 2,041,353,189 |
| Accounts payable | 3,338,914,236 | 3,341,624,602 |
| Contract liabilities | 343,813,781 | 362,538,795 |
| Employee benefits payable | 325,264,034 | 483,337,796 |
| Taxes payable | 166,777,597 | 123,407,413 |
| Other payables | 1,160,609,297 | 484,741,877 |
| Including: interest payable | 8,863,897 | 8,751,408 |
| Dividends payable | 767,673,027 | |
| Current portion of non-current liabilities | 1,540,485,695 | 1,248,891,979 |
| Other current liabilities | 296,865,126 | 454,332,686 |
| Total current liabilities | 9,970,707,604 | 8,977,081,920 |
| Non-current liabilities： | ||
| Long-term borrowings | 6,750,620,208 | 6,221,648,676 |
| Lease liabilities | 14,679,278 | 15,134,562 |
| Long-term payables | 510,957,893 | 88,204,163 |
| Provisions | 12,031,343 | 13,050,082 |
| Deferred income | 441,426,757 | 430,143,830 |
| Deferred tax liabilities | 75,030,913 | 80,087,910 |
| Total non-current liabilities | 7,804,746,392 | 6,848,269,223 |
| Total liabilities | 17,775,453,996 | 15,825,351,143 |
| Shareholders’ equity： | ||
| Share capital | 3,070,692,107 | 3,070,692,107 |
| Capital surplus | 590,739,414 | 590,739,414 |
| Other comprehensive income | 178,601,860 | 177,384,471 |
| Special reserve | 3,363,900 | 1,411,139 |
| Surplus reserve | 1,404,063,298 | 1,404,063,298 |
| Undistributed profits | 8,771,988,323 | 8,806,549,788 |
| Total equity attributable to shareholders of parent company | 14,019,448,902 | 14,050,840,217 |
| Minority interests | 474,052,608 | 485,865,952 |
| Total shareholders' equity | 14,493,501,510 | 14,536,706,169 |
| Total liabilities and shareholders' equity | 32,268,955,506 | 30,362,057,312 |
Legal representative: Chen Lin Principal in charge of accounting: Wang Wenxin Head of accounting department:
Wang Wenxin
2. Balance sheet of the parent company
Unit: RMB
| Item | 30 June 2024 | 1 January 2024 |
| Current assets： | ||
| Cash at bank and on hand | 1,405,056,729 | 1,827,896,587 |
| Accounts receivable | 237,211,824 | 240,038,959 |
| Receivables Financing | 35,231,635 | 5,234,304 |
| Advances to suppliers | 2,034,835 | 1,428,810 |
| Other receivables | 2,537,334,449 | 2,157,102,479 |
| Including: Dividends receivable | 127,775,200 | 126,870,800 |
| Non-current assets due within one year | 84,191,224 | |
| Total current assets | 4,216,869,472 | 4,315,892,363 |
| Non-current assets： | ||
| Long-term equity investments | 10,229,533,769 | 9,806,533,769 |
| Fixed assets | 7,909,754 | 8,737,647 |
| Intangible assets | 9,552,772 | 9,846,993 |
| Long-term prepaid expenses | 3,484,218 | 3,784,407 |
| Other non-current assets | 3,900,657 | 1,683,913 |
| Total non-current assets | 10,254,381,170 | 9,830,586,729 |
| TOTAL ASSETS | 14,471,250,642 | 14,146,479,092 |
| Current liabilities： | ||
| Short-term borrowings | 15,000,000 | 100,000,000 |
| Notes payable | 227,613,519 | 484,035,958 |
| Accounts payable | 244,777,834 | 257,032,871 |
| Employee benefits payable | 32,376,007 | 70,030,907 |
| Taxes payable | 4,925,918 | 2,558,059 |
| Other payables | 3,341,402,835 | 2,857,183,005 |
| Including: interest payable | 2,189,475 | 1,933,504 |
| Dividends payable | 767,673,027 | |
| Current portion of non-current liabilities | 536,069,800 | 647,500,000 |
| Total current liabilities | 4,402,165,913 | 4,418,340,800 |
| Non-current liabilities： | ||
| Long-term borrowings | 1,718,420,200 | 1,302,250,000 |
| Deferred income | 171,562,500 | 171,750,000 |
| Total non-current liabilities | 1,889,982,700 | 1,474,000,000 |
| Total liabilities | 6,292,148,613 | 5,892,340,800 |
| Shareholders’ equity： | ||
| Share capital | 3,070,692,107 | 3,070,692,107 |
| Capital surplus | 741,824,399 | 741,824,399 |
| Surplus reserve | 1,418,608,658 | 1,418,608,658 |
| Undistributed profits | 2,947,976,865 | 3,023,013,128 |
| Item | 30 June 2024 | 1 January 2024 |
| Total shareholders' equity | 8,179,102,029 | 8,254,138,292 |
| Total liabilities and shareholders' equity | 14,471,250,642 | 14,146,479,092 |
3. Consolidated income statement
Unit: RMB
| Item | H1 2024 | H1 2023 |
| I. Total business income | 8,078,970,651 | 8,389,340,245 |
| Including: operating income | 8,078,970,651 | 8,389,340,245 |
| II. Total operating costs | 7,363,291,697 | 7,477,912,994 |
| Including: operating costs | 6,333,338,505 | 6,495,395,931 |
| Taxes and surcharges | 67,905,677 | 76,379,004 |
| Selling and distribution expenses | 155,003,701 | 146,856,141 |
| General and administrative expenses | 394,521,014 | 340,252,772 |
| Research and development expenses | 336,673,375 | 346,264,501 |
| Financial expenses | 75,849,425 | 72,764,645 |
| Including: interest expenses | 115,225,970 | 113,306,203 |
| Interest income | 31,170,207 | 45,500,449 |
| Add：Other Income | 116,694,636 | 47,203,839 |
| Investment income（Loss is listed with “-”） | -4,863,078 | -4,083,180 |
| Credit impairment loss（Loss is listed with “-”） | 7,380,905 | -7,601,224 |
| Asset impairment loss（Loss is listed with “-”） | -41,315,915 | 24,908 |
| Income on disposal assets（Loss is listed with “-”） | 4,202,074 | 53,451 |
| III. Operating profit（Loss is listed with “-”） | 797,777,576 | 947,025,045 |
| Add: Non-operating revenue | 4,928,794 | 9,453,333 |
| Less: Non-operating expenses | 3,180,495 | 486,800 |
| IV. Total profit（Loss is listed with “-”） | 799,525,875 | 955,991,578 |
| Less: Income tax expenses | 78,227,657 | 74,094,170 |
| V. Net profit (Net loss is listed with “-”) | 721,298,218 | 881,897,408 |
| （1）Classified by continuous operation: | ||
| 1. Net income from continuing operations (Net loss is listed with “-”) | 721,298,218 | 881,897,408 |
| （2）Classified by equity ownership: | ||
| 1.Attributable to shareholders of parent company | 733,111,562 | 889,478,780 |
| 2.Minority interests | -11,813,344 | -7,581,372 |
| VI. Other comprehensive income net after tax | 1,217,389 | 10,030,559 |
| Other comprehensive income net after tax attributable to shareholders of parent company | 1,217,389 | 10,030,559 |
| （1）Other comprehensive income to be reclassified into profit and loss | 1,217,389 | 10,030,559 |
| 1. Translation differences arising on translation of foreign currency financial statement | 1,217,389 | 10,030,559 |
| VII. Total comprehensive income | 722,515,607 | 891,927,967 |
| Total comprehensive income attributable to shareholders of the parent company | 734,328,951 | 899,509,339 |
| Item | H1 2024 | H1 2023 |
| Total comprehensive income attributable to minority shareholders | -11,813,344 | -7,581,372 |
| VIII. Earnings per share | ||
| （1）Basic earnings per share | 0.24 | 0.29 |
| （2）Diluted earnings per share | 0.24 | 0.29 |
Legal representative: Chen Lin Principal in charge of accounting: Wang Wenxin Head of accounting department:
Wang Wenxin
4. Income statement of the parent company
Unit: RMB
| Item | H1 2024 | H1 2023 |
| I. Operating income | 196,004,063 | 219,825,718 |
| Less: operating costs | ||
| Taxes and surcharges | 1,569,126 | 1,405,865 |
| Selling and distribution expenses | 20,151,569 | 10,326,349 |
| General and administrative expenses | 134,311,842 | 137,413,753 |
| Research and development expenses | 290,120 | |
| Financial expenses | 5,210,579 | 15,872,574 |
| Including: interest expenses | 31,753,909 | 61,444,973 |
| Interest income | 25,751,103 | 41,530,076 |
| Add：Other Income | 1,009,464 | 3,002,974 |
| Investment income（Loss is listed with “-”） | 656,824,755 | 1,682,067,333 |
| Credit impairment loss（Loss is listed with “-”） | 70,299 | 459,771 |
| Income on disposal assets（Loss is listed with “-”） | 28,035 | |
| II. Operating profit（Loss is listed with “-”） | 692,693,500 | 1,740,047,135 |
| Add: Non-operating revenue | 14,664 | 1,770 |
| Less: Non-operating expenses | 71,400 | 170,614 |
| III. Total profit（Loss is listed with “-”） | 692,636,764 | 1,739,878,291 |
| Less: Income tax expenses | ||
| IV. Net profit (Net loss is listed with “-”) | 692,636,764 | 1,739,878,291 |
| （1）Net income from continuing operations (Net loss is listed with “-”) | 692,636,764 | 1,739,878,291 |
| （2）Net income from discontinued operations(Net loss is listed with “-”) | ||
| V. Total comprehensive income | 692,636,764 | 1,739,878,291 |
| VI. Earnings per share |
5. Consolidated statement of cash flows
Unit: RMB
| Item | H1 2024 | H1 2023 |
| I. Cash flows from operating activities： | ||
| Cash received from sales of goods or rendering of services | 8,467,658,366 | 8,167,102,471 |
| Refund of taxes and surcharges | 32,599,323 | 129,649,279 |
| Cash received relating to other operating activities | 120,575,427 | 235,147,053 |
| Sub-total of cash inflows from operating activities | 8,620,833,116 | 8,531,898,803 |
| Cash paid for goods and services | 5,815,275,525 | 6,164,275,159 |
| Cash paid to and on behalf of employees | 1,220,487,978 | 1,161,324,786 |
| Payments of taxes and surcharges | 320,331,418 | 481,706,537 |
| Cash paid relating to other operating activities | 271,454,050 | 206,165,136 |
| Sub-total of cash outflows from operating activities | 7,627,548,971 | 8,013,471,618 |
| Net cash flows from/(used in) operating activities | 993,284,145 | 518,427,185 |
| II. Cash flows from investing activities： | ||
| Cash received from returns on investments | 140,000,000 | 20,000,000 |
| Cash received from returns on invest income | 5,376,333 | 775,676 |
| Net cash received from disposal of fixed assets, intangible assets and other long-term assets | 21,021,307 | 176,747 |
| Cash received relating to other investing activities | 32,629,490 | |
| Sub-total of cash inflows from operating activities | 166,397,640 | 53,581,913 |
| Cash paid to acquire fixed assets, intangible assets and other long-term asset | 1,492,512,738 | 1,714,949,765 |
| Cash paid to acquire investments | 162,800,000 | 20,000,000 |
| Net cash paid to acquire subsidiaries and other business units | 696,000 | |
| Cash paid relating to other investing activities | 26,244,829 | |
| Sub-total of cash outflows from operating activities | 1,681,557,567 | 1,735,645,765 |
| Net cash flows (used in)/from investing activities | -1,515,159,927 | -1,682,063,852 |
| III. Cash flows from financing activities： | ||
| Cash received from investors | 4,000,000 | |
| Including: Cash received from absorbing minority shareholders’ investment by subsidiaries | 4,000,000 | |
| Cash received from borrowings | 1,605,003,386 | 1,792,403,638 |
| Cash received relating to other financing activities | 458,231,000 | 12,000,000 |
| Sub-total of cash inflows from operating activities | 2,063,234,386 | 1,808,403,638 |
| Cash repayments of borrowings | 900,033,363 | 2,351,598,051 |
| Cash payments for interest expenses and distribution of dividends or profits | 139,192,778 | 227,681,798 |
| Cash payments relating to other financing activities | 86,415,538 | 23,054,274 |
| Sub-total of cash outflows from operating activities | 1,125,641,679 | 2,602,334,123 |
| Net cash flows (used in)/from financing activities | 937,592,707 | -793,930,485 |
| IV. Effect of foreign exchange rate changes on cash | 10,660,765 | 2,809,041 |
| V. Net increase/(decrease) in cash and cash equivalents | 426,377,690 | -1,954,758,111 |
| Add: Cash and cash equivalents at beginning of period | 3,051,261,655 | 4,594,018,251 |
| VI. Cash and cash equivalents at end of period | 3,477,639,345 | 2,639,260,140 |
6. Statement of cash flows of the parent company
Unit: RMB
| Item | H1 2024 | H1 2023 |
| I. Cash flows from operating activities： | ||
| Cash received from sales of goods or rendering of services | 857,809,508 | 346,331,261 |
| Cash received relating to other operating activities | 26,636,779 | 207,913,289 |
| Sub-total of cash inflows from operating activities | 884,446,287 | 554,244,550 |
| Cash paid for goods and services | 667,365,408 | 59,456,484 |
| Cash paid to and on behalf of employees | 176,610,778 | 182,805,295 |
| Payments of taxes and surcharges | 8,574,661 | 22,354,669 |
| Cash paid relating to other operating activities | 76,762,407 | 17,475,295 |
| Sub-total of cash outflows | 929,313,254 | 282,091,743 |
| Net cash flows from/(used in) operating activities | -44,866,967 | 272,152,807 |
| II. Cash flows from investing activities： | ||
| Cash received from returns on investments | 80,000,000 | 20,000,000 |
| Cash received from returns on invest income | 661,015,979 | 1,931,308,828 |
| Net cash received from disposal of fixed assets, intangible assets and other long-term assets | 31,680 | 2,000 |
| Sub-total of cash inflows | 741,047,659 | 1,951,310,828 |
| Cash paid to acquire fixed assets, intangible assets and other long-term assets | 3,750,531 | 5,775,984 |
| Cash paid to acquire investments | 523,000,000 | 999,282,840 |
| Sub-total of cash outflows | 526,750,531 | 1,005,058,824 |
| Net cash flows (used in)/from investing activities | 214,297,128 | 946,252,004 |
| III. Cash flows from financing activities： | ||
| Cash received from borrowings | 643,490,000 | 610,000,000 |
| Sub-total of cash inflows | 643,490,000 | 610,000,000 |
| Cash repayments of borrowings | 423,750,000 | 2,216,543,000 |
| Cash payments for interest expenses and distribution of dividends or profits | 31,497,937 | 154,494,391 |
| Cash paid relating to other financing activities | 880,514,582 | 532,071,876 |
| Sub-total of cash outflows | 1,335,762,519 | 2,903,109,267 |
| Net cash flows (used in)/from financing activities | -692,272,519 | -2,293,109,267 |
| IV. Effect of foreign exchange rate changes on cash | 2,413 | 18,222 |
| V. Net increase/(decrease) in cash and cash equivalents | -522,839,945 | -1,074,686,234 |
| Add: Cash and cash equivalents at beginning of period | 1,827,884,309 | 2,595,003,883 |
| VI. Cash and cash equivalents at end of period | 1,305,044,364 | 1,520,317,649 |
7. Consolidated statement of changes in owner's equity
H1 2024
Unit: RMB
| Item | H1 2024 | ||||||||
| Equity attributable to shareholders of parent company | Minority interests | Total shareholders' equity | |||||||
| Share capital | Capital surplus | Other comprehensive income | Special reserve | Surplus reserve | Undistributed profits | Sub-total | |||
| I. Balance at the end of the last year | 3,070,692,107 | 590,739,414 | 177,384,471 | 1,411,139 | 1,404,063,298 | 8,806,549,788 | 14,050,840,217 | 485,865,952 | 14,536,706,169 |
| II. Balance at the beginning of the period | 3,070,692,107 | 590,739,414 | 177,384,471 | 1,411,139 | 1,404,063,298 | 8,806,549,788 | 14,050,840,217 | 485,865,952 | 14,536,706,169 |
| III. Movements for the period (Decrease is listed with “-”) | 1,217,389 | 1,952,761 | -34,561,465 | -31,391,315 | -11,813,344 | -43,204,659 | |||
| （I）Total comprehensive income | 1,217,389 | 733,111,562 | 734,328,951 | -11,813,344 | 722,515,607 | ||||
| （II）Capital increase or decrease from shareholder | |||||||||
| 1. Ordinary shares contributed by the owner | |||||||||
| 2. Others | |||||||||
| （III）Profit distribution | -767,673,027 | -767,673,027 | -767,673,027 | ||||||
| 1. Transfer to surplus reserves | |||||||||
| 2. Distribution to owners （or shareholders） | -767,673,027 | -767,673,027 | -767,673,027 | ||||||
| （IV）Special reserve | 1,952,761 | 1,952,761 | 1,952,761 | ||||||
| 1．Special reserve | 3,139,075 | 3,139,075 | 3,139,075 | ||||||
| appropriate | |||||||||
| 2．Special reserve used | 1,186,314 | 1,186,314 | 1,186,314 | ||||||
| IV. Balance at the end of the period | 3,070,692,107 | 590,739,414 | 178,601,860 | 3,363,900 | 1,404,063,298 | 8,771,988,323 | 14,019,448,902 | 474,052,608 | 14,493,501,510 |
H1 2023
Unit: RMB
| Item | H1 2023 | ||||||||
| Equity attributable to shareholders of parent company | Minority interests | Total shareholders' equity | |||||||
| Share capital | Capital surplus | Other comprehensive income | Special reserve | Surplus reserve | Undistributed profits | Sub-total | |||
| I. Balance at the end of the last year | 3,070,692,107 | 596,997,085 | 170,860,478 | 731,580 | 1,228,634,001 | 7,786,968,455 | 12,854,883,706 | 520,787,597 | 13,375,671,303 |
| II. Balance at the beginning of the period | 3,070,692,107 | 596,997,085 | 170,860,478 | 731,580 | 1,228,634,001 | 7,786,968,455 | 12,854,883,706 | 520,787,597 | 13,375,671,303 |
| III. Movements for the period (Decrease is listed with “-”) | 10,030,559 | -521,061 | 889,478,780 | 898,988,278 | -3,581,372 | 895,406,906 | |||
| （I）Total comprehensive income | 10,030,559 | 889,478,780 | 899,509,339 | -7,581,372 | 891,927,967 | ||||
| （II）Capital increase or decrease from shareholder | 4,000,000 | 4,000,000 | |||||||
| 1. Contributions from shareholders in common stock | 4,000,000 | 4,000,000 | |||||||
| 2. Others | |||||||||
| （III）Profit distribution | |||||||||
| 1. Transfer to surplus reserves | |||||||||
| 2. Distribution to owners (or shareholders) | |||||||||
| （IV）Special reserve | -521,061 | -521,061 | -521,061 | ||||||
| 1．Special reserve | 5,038,984 | 5,038,984 | 5,038,984 | ||||||
| Item | H1 2023 | ||||||||
| Equity attributable to shareholders of parent company | Minority interests | Total shareholders' equity | |||||||
| Share capital | Capital surplus | Other comprehensive income | Special reserve | Surplus reserve | Undistributed profits | Sub-total | |||
| appropriate | |||||||||
| 2．Special reserve used | 5,560,045 | 5,560,045 | 5,560,045 | ||||||
| IV. Balance at the end of the period | 3,070,692,107 | 596,997,085 | 180,891,037 | 210,519 | 1,228,634,001 | 8,676,447,235 | 13,753,871,984 | 517,206,225 | 14,271,078,209 |
8. Statement of changes in owners' equity of the parent company
H1 2024
Unit: RMB
| Item | H1 2024 | ||||
| Share capital | Capital surplus | Surplus reserve | Undistributed profits | Total shareholders' equity | |
| I. Balance at the end of the last year | 3,070,692,107 | 741,824,399 | 1,418,608,658 | 3,023,013,128 | 8,254,138,292 |
| II. Balance at the beginning of the period | 3,070,692,107 | 741,824,399 | 1,418,608,658 | 3,023,013,128 | 8,254,138,292 |
| III. Movements for the period (Decrease is listed with “-”) | -75,036,263 | -75,036,263 | |||
| （I）Total comprehensive income | 692,636,764 | 692,636,764 | |||
| （II）Capital increase or decrease from shareholder | |||||
| （III）Profit distribution | -767,673,027 | -767,673,027 | |||
| 1. Transfer to surplus reserves | |||||
| 2. Distribution to shareholders | -767,673,027 | -767,673,027 | |||
| （IV）Internal carry-forward of owners' equity | |||||
| （V）Special reserve | |||||
| （VI）Others | |||||
| IV. Balance at the end of the period | 3,070,692,107 | 741,824,399 | 1,418,608,658 | 2,947,976,865 | 8,179,102,029 |
H1 2023
Unit: RMB
| Item | H1 2023 | ||||
| Share capital | Capital surplus | Surplus reserve | Undistributed profits | Total shareholders' equity | |
| I. Balance at the end of the last year | 3,070,692,107 | 741,824,399 | 1,243,179,361 | 1,904,753,271 | 6,960,449,138 |
| II. Balance at the beginning of the period | 3,070,692,107 | 741,824,399 | 1,243,179,361 | 1,904,753,271 | 6,960,449,138 |
| III. Movements for the period (Decrease is listed with “-”) | 1,739,878,291 | 1,739,878,291 | |||
| （I）Total comprehensive income | 1,739,878,291 | 1,739,878,291 | |||
| （II）Capital increase or decrease from shareholder | |||||
| （III）Profit distribution | |||||
| 1. Transfer to surplus reserves | |||||
| 2. Distribution to owners (or shareholders) | |||||
| （IV）Internal carry-forward of owners' equity | |||||
| （V）Special reserve | |||||
| （VI）Others | |||||
| IV. Balance at the end of the period | 3,070,692,107 | 741,824,399 | 1,243,179,361 | 3,644,631,562 | 8,700,327,429 |
III. GENERAL INFORMATIONCSG Holding Co., Ltd. (the “Group”) was incorporated in September 1984, known as China South Glass Company,as a joint venture enterprise by Hong Kong China Merchants Shipping Co.,LTD (香港招商局轮船股份有限公司),Shenzhen Building Materials Industry Corporation (深圳建筑材料工业集团公司), China North IndustriesCorporation (中国北方工业深圳公司) and Guangdong International Trust and Investment Corporation (广东国际信托投资公司). The Group was registered in Shenzhen, Guangdong Province of the People's Republic of China and itsheadquarters is located in Shenzhen, Guangdong Province of the People's Republic of China. The Group issuedRMB-denominated ordinary shares (“A-share”) and foreign shares (“B-share”) publicly in October 1991 and January1992 respectively, and was listed on Shenzhen Stock Exchange on February 1992. As at 30 June 2024, the registeredcapital of the Group was RMB3,070,692,107, with nominal value of RMB1 per share.The Group and its subsidiaries (collectively referred to as the “Group”) are mainly engaged in the manufacture andsales of float glass, photovoltaic glass, specialised glass, engineering glass, energy saving glass, silicon relatedmaterials, polycrystalline silicon and solar components and electronic-grade display device glass and the constructionand operation of photovoltaic plant etc.The financial statements and the notes thereto were authorised for issue by the Board of Directors of the Group on 22August 2024.Details on the major subsidiaries included in the consolidated scope in the current period were stated in the notes tothe financial statements.IV. BASIS OF PREPARATION OF FINANCIAL STATEMENTS
1. Basis of preparation of financial statements
These financial statements are prepared in accordance with the Accounting Standards for Business Enterprises andtheir 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 relevantfinancial information in accordance with the China Securities Regulatory Commission’s Information Disclosure andPreparation Rules for Companies that Offer Securities to the Public No. 15 - General Provisions on FinancialReports (Revised in 2023).The Group’s accounting is based on the accrual basis. Except for certain financial instruments and investmentproperties, these financial statements are measured on a historical cost basis. If an asset is impaired, correspondingimpairment provisions will be made in accordance with relevant regulations.
2. Going concern
The present financial report has been prepared on the basis of going concern assumptions.
V. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES
The depreciation of fixed assets, amortization of intangible assets, capitalization conditions for R&D expenses andrevenue recognition policies based on its own production and operation characteristics. For specific accountingpolicies, please refer to Note.
1. Statement of compliance with the Accounting Standards for Business EnterprisesThis financial statement complies with the requirements of the Accounting Standards for Business Enterprises andtruly and completely reflects the Group’s consolidated and company financial status as of 30 June 2024, as well as the
consolidated and company operating results, consolidated and company cash flows and other relevant informationfrom January to June 2024.
2. Accounting year
The Group adopts the Gregorian calendar year, that is, from 1 January to 31 December each year.
3. Operating cycle
The Group’s operating cycle is 12 months.
4. Recording currency
The Group and its domestic subsidiaries use RMB as their functional currency for accounting. The Group’s overseassubsidiaries determine their recording currency based on the currency of the main economic environment in whichthey operate. The currency used by the Group in preparing these financial statements is RMB.
5. Materiality criteria determination method and selection basis
?Applicable □Not applicable
| Item | Materiality criterion |
| Significant single provision for bad debts in accounts receivable | The amount of individual accounts receivable provision accounts for over 5% of the combined accounts receivable balance |
| Significant single provision for bad debts in other receivables | The amount of individual other receivables provision accounts for over 10% of the combined other receivables balance |
| Significant write-off of accounts receivable/other receivables | The impact on the company’s current profit and loss 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 |
6. Accounting treatment of business combinations under the common control and under non- commoncontrol
(1) Business combinations involving enterprises under common control
For business mergers under common control, the assets and liabilities of the merged party acquired by the mergingparty during the merger shall be measured based on the book value of the merged party in the consolidated financialstatements of the ultimate controlling party on the merger date. The difference between the book value of the mergerconsideration (or the total face value of the shares issued) and the book value of the net assets obtained in the mergeris adjusted to the capital reserve (share premium). If the capital reserve (share premium) is insufficient to offset it, theretained 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 onthe book value in the consolidated financial statements of the ultimate controlling party on the date of merger; thebook value of the investments held before the merger plus the book value of the newly paid consideration on the dateof merger The difference between the sum and the book value of the net assets obtained in the merger shall beadjusted to the capital reserve (equity premium) . If the capital reserve is insufficient for offset, the retained earningsshall 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 themerging party and the merged party are under the final control of the same party, whichever is later, to the date ofmerger. Changes in profits and losses, other comprehensive income and other owners’ equity should be offset againstthe 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, liabilitiesincurred or assumed, and the fair value of equity securities issued to obtain control of the purchased party on theacquisition date. On the purchase date, the acquired assets, liabilities and contingent liabilities of the purchased partyare recognized at fair value.If the merger cost is greater than the fair value share of the acquiree’s identifiable net assets obtained in the merger.The difference is recognized as goodwill, and is subsequently measured at cost less accumulated impairment reserves;if the merger cost is less than the acquiree’s identifiable net assets acquired in the merger, the difference is recognizedas goodwill. The difference between the fair value of the net assets will be included in the current profit and loss afterreview.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’sequity held before the purchase date on the purchase date. For the equity of the purchased party that has been heldbefore the purchase date, it will be remeasured according to the fair value of the equity on the purchase date, and thedifference between the fair value and its book value will be included in the investment income of the current period;The purchaser’s equity held before the purchase date involves other comprehensive income, changes in other owners’equity are converted into current income on the purchase date, other comprehensive income arising from theinvestee’s remeasurement of the net liabilities or changes in net assets of the defined benefit plan, and othercomprehensive income originally designated as fair value Except for other comprehensive income related toinvestments in non-trading equity instruments that are measured and whose changes are included in othercomprehensive income.
(3) Handling of Transaction Costs in Business Combinations
Intermediary fees such as auditing, legal services, evaluation and consulting, and other related management feesincurred for business mergers are included in the current profit and loss when incurred. The transaction costs ofequity securities or debt securities issued as consideration for the merger shall be included in the initial recognitionamount 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 thatthe Group has power over the invested unit, enjoys variable returns by participating in the relevant activities of theinvested unit, and has the ability to use its power over the invested unit to affect its return amount. The Group willreassess when changes in relevant facts and circumstances lead to changes in the relevant elements involved in thedefinition of control.When judging whether to include structured entities into the scope of consolidation, the Group comprehensivelyconsiders all facts and circumstances, including assessing the purpose and design of the structured entities, identifyingthe 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 areprepared by the Group based on other relevant information. When preparing consolidated financial statements, theaccounting policies and accounting period requirements of the Group and its subsidiaries are consistent, andsignificant inter-company transactions and balances are offset.Subsidiaries and businesses that are added due to business combinations under the same control during the reportingperiod are deemed to be included in the scope of consolidation of the Group from the date they are both controlled bythe ultimate controlling party. The operating results and cash flows from the date of the announcement are included inthe 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 thereporting period, the income, expenses, and profits of the subsidiaries and businesses from the date of acquisition tothe end of the reporting period are included in the consolidated income statement, and their cash flows are included inthe consolidated cash flow statement.The part of the subsidiary’s shareholders’ equity that is not owned by the Group is listed separately as minorityshareholders’ equity in the consolidated balance sheet under shareholders’ equity; the share of the subsidiary’s currentnet profit and loss that is minority shareholders’ equity is listed in the consolidated income statement. The net profititem is listed under the item “Profits and losses of minority shareholders”. If the losses of a subsidiary shared byminority shareholders exceed the minority shareholders’ share of the opening owner’s equity of the subsidiary, thebalance 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 sharesand the share of the subsidiary’s net assets calculated continuously from the date of purchase or merger based on thenew shareholding ratio, and without losing control The difference between the disposal price obtained from the partialdisposal of the equity investment in the subsidiary and the corresponding share of the subsidiary’s net assetscalculated continuously from the date of purchase or merger date corresponding to the disposal of the long-termequity investment shall be adjusted in the consolidated balance sheet. Capital reserve (equity premium/capitalpremium), 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 theconsideration obtained from the disposal of the equity and the fair value of the remaining equity shall be lessCalculated based on the original shareholding ratio, the sum of the share of the book value of the net assets andgoodwill of the original subsidiary calculated continuously from the date of purchase shall be included in theinvestment 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 onthe same basis as the original subsidiary’s direct disposal of relevant assets or liabilities when the control is lost.Anyincome 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 toinvestments held by the Group that are short-term, highly liquid, easily convertible into known amounts of cash, andhave little risk of value changes.
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 exchangerate on the date of the transaction.On the balance sheet date, foreign currency monetary items are converted using the spot exchange rate on the balancesheet date. The exchange difference arising from the difference between the spot exchange rate on the balance sheetdate and the spot exchange rate at the time of initial recognition or the previous balance sheet date is included in thecurrent profit and loss; for foreign currency non-monetary items measured at historical cost, the spot exchange rate onthe date of the transaction is still used The foreign currency non-monetary items measured at fair value shall beconverted at the spot exchange rate on the date when the fair value is determined. The difference between theconverted accounting functional currency amount and the original accounting functional currency amount shall beconverted according to the non-monetary accounting currency amount. The nature of monetary items is included incurrent 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, theasset 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 exchangerate on the date of occurrence.Income and expense items in the income statement are translated using the spot exchange rate on the date oftransaction.All items in the cash flow statement are translated according to the spot exchange rate on the date when the cash flowoccurs. The impact of exchange rate changes on cash is regarded as an adjustment item and is reflected in the “Impactof exchange rate changes on cash and cash equivalents” separately in the cash flow statement.Differences arising from the translation of financial statements are reflected in the “other comprehensive income”item under the shareholders’ equity item in the balance sheet.When an overseas operation is disposed of and control is lost, the translation difference of the foreign currencystatements listed under the shareholders’ equity item in the balance sheet and related to the overseas operation shallbe transferred to the current profit and loss of the disposal in full or in proportion to the disposal of the overseasoperation.
10. Financial tool
A financial instrument is a contract that forms a financial asset of one party and a financial liability or equityinstrument of another party.
(1) Recognition and derecognition of financial instruments
The Group recognizes a financial asset or financial liability when it becomes a party to a financial instrument contract.Financial assets shall be derecognized if they meet one of the following conditions:
1) The contractual right to receive cash flows from the financial asset terminates;
2) The financial asset has been transferred and meets the following conditions for derecognition of financial assettransfer.If the current obligation of a financial liability has been discharged in whole or in part, the financial liability or part ofit shall be derecognised. If the Group (debtor) signs an agreement with its creditors to replace existing financialliabilities by assuming new financial liabilities, and the contract terms of the new financial liabilities are substantiallydifferent 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 becarried 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 businessmodel of managing financial assets and the contractual cash flow characteristics of financial assets: financial assetsmeasured at amortized cost, financial assets measured at fair value through other comprehensive income and financialassets 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 throughprofit and loss, the relevant transaction costs are directly included in the current profit and loss; for other types offinancial assets, the relevant transaction costs are included in the initial recognition amount. For receivables arisingfrom the sale of products or provision of services that do not include or take into account significant financingcomponents, the amount of consideration that the Group is expected to be entitled to receive shall be deemed as theinitial recognition amount.Financial assets measured at amortized costThe Group classifies financial assets that meet the following conditions and are not designated as measured at fairvalue through profit or loss as financial assets measured at amortized cost:
? The Group’s business model for managing this financial asset is aimed at collecting contractual cash flows;? The contractual terms of the financial asset provide that the cash flows generated on a specific date are solely
payments of principal and interest based on the outstanding principal amount.After initial recognition, such financial assets are measured at amortized cost using the effective interest rate method.Gains or losses arising from financial assets that are measured at amortized cost and are not part of any hedgingrelationship are included in the current profit and loss when they are derecognized, amortized according to theeffective interest method, or impairment is recognized.Financial assets measured at fair value through other comprehensive incomeThe Group classifies financial assets that meet the following conditions and are not designated as measured at fairvalue 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 orgains and exchange gains and losses calculated using the effective interest rate method are included in the currentprofit and loss, and other gains or losses are included in other comprehensive income. When derecognition isterminated, the accumulated gains or losses previously included in other comprehensive income will be transferredout of other comprehensive income and included in the current profit and loss.Financial assets measured at fair value through profits and lossesExcept for the above-mentioned financial assets measured at amortized cost and at fair value through othercomprehensive income, the Group classifies all remaining financial assets as financial assets at fair value throughprofit 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 fairvalue 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 orlosses (including interest and dividend income) are included in the current profits and losses, unless the financialassets are part of a hedging relationship.The business model for managing financial assets refers to how the Group manages financial assets to generate cashflow. The business model determines whether the source of cash flow from the financial assets managed by the Groupis collection of contractual cash flow, sale of financial assets or both. The Group determines the business model formanaging financial assets based on objective facts and specific business objectives for managing financial assetsdetermined by key management personnel.The Group evaluates the contractual cash flow characteristics of financial assets to determine whether the contractualcash flows generated by the relevant financial assets on a specific date are only payments of principal and interestbased on the outstanding principal amount. Among them, principal refers to the fair value of the financial asset at thetime of initial recognition; interest includes consideration for the time value of money, the credit risk associated withthe outstanding principal amount in a specific period, and other basic lending risks, costs and profits. In addition, theGroup evaluates contract terms that may cause changes in the time distribution or amount of contractual cash flows offinancial assets to determine whether they meet the requirements of the above contractual cash flow characteristics.Only when the Group changes its business model for managing financial assets, all affected relevant financial assetswill 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 throughprofit and loss, the relevant transaction costs are directly included in the current profit and loss; for other types offinancial assets, the relevant transaction costs are included in the initial recognition amount. For accounts receivablearising from the sale of products or provision of services that do not include or take into account significant financingcomponents, the amount of consideration that the Group is expected to be entitled to receive shall be deemed as theinitial 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 valuethrough profit or loss, and financial liabilities measured at amortized cost. For financial liabilities that are notclassified as measured at fair value through profit and loss, relevant transaction costs are included in their initialrecognition amount.Financial liabilities measured at fair value through profit or lossFinancial liabilities at fair value through profit or loss include trading financial liabilities and financial liabilitiesdesignated as fair value through profit or loss upon initial recognition. Such financial liabilities are subsequentlymeasured at fair value, and gains or losses arising from changes in fair value, as well as dividends and interestexpenses related to such financial liabilities, are included in the current profits and losses.Financial liabilities measured at amortized costOther 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 instrumentsFinancial liabilities refer to liabilities that meet one of the following conditions:
1) Contractual obligation to deliver cash or other financial assets to other parties.
2) Contractual obligations to exchange financial assets or financial liabilities with other parties under potentiallyadverse conditions.
3) Non-derivative contracts that must or can be settled with the enterprise’s own equity instruments in the future, andthe enterprise will deliver a variable number of its own equity instruments according to the contract.
4) Derivative contracts that must or can be settled with the enterprise’s own equity instruments in the future, exceptfor derivative contracts that exchange a fixed number of its own equity instruments for a fixed amount of cash orother financial assets.Equity instruments refer to contracts that prove ownership of the remaining equity in the assets of an enterprise afterdeducting all liabilities.If the Group cannot unconditionally avoid delivering cash or other financial assets to fulfil a contractual obligation,the contractual obligation meets the definition of a financial liability.If a financial instrument must be settled or can be settled with the Group’s own equity instruments, it is necessary toconsider whether the Group’s own equity instruments used to settle the instrument are used as a substitute for cash orother financial assets, or to enable the holders of the instrument to hold the remaining interest in the issuer’s assetsafter deducting all liabilities. If it is the former, the instrument is a financial liability of the Group; if it is the latter, theinstrument is an equity instrument of the Group.
(4) Fair value of financial instruments
Fair value is the price that a market participant would pay to sell an asset or transfer a liability in an orderlytransaction that occurred on the measurement date.The Group measures related assets or liabilities at fair value, assuming that the orderly transaction to sell assets ortransfer liabilities is carried out in the principal market for related assets or liabilities. If no principal market exists,the Group assumes that the transaction is carried out in the most advantageous market for related assets or liabilities.The principal market (or the most advantageous market) is the transaction market which the Group can enter on themeasurement date. The Group adopts the assumptions used by market participants to maximize their economicbenefits when pricing the assets or liabilities.For financial assets or liabilities with an active market, the Group adopts the quoted price in the active market todetermine its fair value. For a financial instrument without an active market, the Group adopts valuation techniques todetermine its fair value.When measuring non-financial assets at fair value, the Company considers the ability of market participants to use theassets for the best use to generate economic benefits, or to sell the assets to other market participants who can use theassets for the best use to generate economic benefits.The Group adopts valuation techniques that are applicable to the current situation and with sufficient data availableand other information support and gives priority to the use of the related observable input value. It uses unobservableinput values only if the input value cannot be observed or is not feasible.The assets and liabilities measured or disclosed at fair value in the financial statements are in line with the lowestlevel of the input values that is important to fair value measurement as a whole to determine the level of fair value.The first level of the input values means an unadjusted quoted price in an active market for the same assets andliabilities available on the measurement date. The second level of the input values are the directly or indirectlyobservable input values of related assets and liabilities except for the first level of the input values. The third level ofthe input values are the unobservable input values of related assets and liabilities.On each balance sheet date, the Group re-assesses the assets and liabilities that are continuously measured at fairvalue in the financial statements so as to determine whether the conversion occurs at different levels of the fair valuemeasurement.
(5) Impairment of financial assets
Based on expected credit losses, the Group performs impairment accounting on the following items and recognizesloss 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 thefinancial assets continue to be involved in the transferred financial assets).Measurement of expected credit lossesExpected credit losses refer to the weighted average of the credit losses of financial instruments with the risk ofdefault as the weight. Credit loss refers to the difference between all contractual cash flows receivable under thecontract and all cash flows expected to be received by the Group discounted at the original effective interest rate, thatis, the present value of all cash shortfalls.The Group considers reasonable and well-founded information about past events, current conditions, and predictionsof future economic conditions, and weights the risk of default to calculate the difference between the cash flowsreceivable under the contract and the cash flows expected to be received. The probability-weighted amount of thepresent value is recognized as the expected credit loss.The Group measures the expected credit losses of financial instruments at different stages respectively. If the creditrisk of a financial instrument has not increased significantly since initial recognition, it is in the first stage, and theGroup will measure loss provisions based on the expected credit losses in the next 12 months; if the credit risk of afinancial instrument has increased significantly since initial recognition but has not yet occurred If the financialinstrument is credit-impaired, it is in the second stage, and the Group measures the loss provision based on theexpected credit losses for the entire duration of the instrument; if the financial instrument has been credit-impairedsince initial recognition, it is in the third stage, and the Group measures the expected credit losses for the entireduration 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 notincreased significantly since initial recognition and measures loss provisions based on expected credit losses withinthe next 12 months.Lifetime expected credit losses refer to the expected credit losses caused by all possible default events that may occurduring the entire expected life of a financial instrument. Expected credit losses in the next 12 months refer to thedefault events of financial instruments that may occur within 12 months after the balance sheet date (if the expectedduration of the financial instrument is less than 12 months, the expected duration) Expected credit losses are part ofthe expected credit losses throughout the entire duration.When measuring expected credit losses, the maximum period that the Group needs to consider is the longest contractperiod 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 interestincome based on its Carrying Amount before impairment provisions and actual interest rate. For financial instrumentsin the third stage, interest income is calculated based on its Carrying Amount minus the amortized cost and actualinterest rate after impairment provisions have been made.For receivables such as notes receivable, accounts receivable, receivable financing, other receivables, and contractassets, if the credit risk characteristics of a certain customer are significantly different from other customers in theportfolio, or the credit risk of the customer If the characteristics of the receivables change significantly, the Groupshall make a separate provision for bad debts for the receivables. In addition to the receivables for which bad debtprovisions are made individually, the Group divides the receivables into groups based on credit risk characteristicsand calculates bad debt provisions on a group basis.
Notes receivable, accounts receivable and contract assetsFor notes receivable and accounts receivable, regardless of whether there is a significant financing component, theGroup always measures its loss provisions at an amount equivalent to the expected credit losses during the entireduration.When the information on expected credit losses cannot be assessed at a reasonable cost for a single financial asset, theGroup divides notes receivable and accounts receivable into groups based on credit risk characteristics, and calculatesexpected credit losses on the basis of the groups. The basis for determining the group is as follows:
A. Notes receivable? Notes Receivable Portfolio 1: Bank Acceptance Bill? Notes Receivable Portfolio 2: Commercial Acceptance BillB. Accounts receivable? Accounts receivable portfolio 1: Non-related party customers? Accounts Receivable Portfolio 2: Related Party CustomersFor 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 lossesthrough 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 withcurrent conditions and predictions of future economic conditions, to prepare a comparison table between theaging/overdue days of accounts receivable and the expected credit loss rate for the entire duration. Calculate expectedcredit losses. The aging of accounts receivable is calculated from the date of confirmation/the number of overduedays is calculated from the date of expiration of the credit period.Other receivablesThe Group divides other receivables into several combinations based on credit risk characteristics, and calculatesexpected 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 partiesFor other receivables classified into portfolios, the Group calculates expected credit losses through the default riskexposure and the expected credit loss rate within the next 12 months or throughout the duration. For other receivablesgrouped by aging, the aging is calculated from the date of confirmation.Debt investment, other debt investmentFor debt investments and other debt investments, the Group calculates expected credit based on the nature of theinvestment and various types of counterparties and risk exposures through default risk exposure and expected credit lossrate within the next 12 months or throughout the duration.Assessment of significant increase in credit riskThe Group compares the risk of default of a financial instrument on the balance sheet date with the risk of default on theinitial recognition date to determine the relative change in the default risk of the financial instrument during its expectedduration to assess whether the credit risk of the financial instrument has increased significantly since its initialrecognition.When determining whether the credit risk has increased significantly since initial recognition, the Group considers
reasonable and supportable information, including forward-looking information, that can be obtained withoutunnecessary additional cost or effort. Information considered by the Group includes:
? The debtor fails to pay the principal and interest on the due date of the contract;? 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 creditrisk on the basis of a single financial instrument or a combination of financial instruments. When evaluating based on aportfolio of financial instruments, the Group can classify financial instruments based on common credit riskcharacteristics, 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 increasedsignificantly.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 assetsThe Group assesses whether credit impairment has occurred on financial assets measured at amortized cost and debtinvestments measured at fair value through other comprehensive income on the balance sheet date. When one or moreevents occur that have an adverse impact on the expected future cash flows of a financial asset, the financial assetbecomes a credit-impaired financial asset. Evidence that a financial asset has been credit-impaired includes thefollowing 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 provisionsIn order to reflect changes in the credit risk of financial instruments since initial recognition, the Group re-measuresexpected credit losses on each balance sheet date, and the resulting increase or reversal of loss provisions shall beaccounted for as impairment losses or gains into current profit and loss. For financial assets measured at amortizedcost, the loss provision is reduced by the book value of the financial assets listed in the balance sheet; for debtinvestments 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 offIf the Group no longer reasonably expects that the contractual cash flows of a financial asset can be fully or partiallyrecovered, it will directly write down the Carrying Amount of the financial asset. Such a write-down constitutes thederecognition of the relevant financial asset. This situation usually occurs when the Group determines that the debtordoes not have the assets or sources of income to generate sufficient cash flow to repay the amount that will be writtendown. However, in accordance with the Group’s procedures for recovering due amounts, financial assets that arewritten 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 includedin 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-inparty) 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, thefinancial asset shall be derecognised; if the Group has retained substantially all risks and rewards of ownership of thefinancial 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, itshall handle the following situations respectively: if it gives up control of the financial asset, the financial asset shallbe derecognised and the assets and liabilities incurred shall be recognized; if it has not given up control of thefinancial asset, If the financial asset is controlled, the relevant financial assets shall be recognized to the extent of itscontinued 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 currentlyable to enforce such legal rights, and the Group plans to settle on a net basis or to realize the financial assets and payoff the financial liabilities at the same time, the financial assets and financial liabilities will be presented in thebalance sheet at the amount after offsetting each other. Otherwise, financial assets and financial liabilities arepresented separately in the balance sheet and are not offset against each other.
11. Inventories
(1) Inventory classification
The Group’s inventories are divided into raw materials, work in progress, inventory goods and turnover materials.
(2) Valuation method for issued inventory
The Group’s inventories are valued at actual cost when acquired. Raw materials, inventory, etc. are priced using theweighted average method when shipped.
(3) Methods of accrual and provision for inventories
On the balance sheet date, inventories are measured at the lower of cost and net realizable value. When the netrealizable 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 uponcompletion, estimated selling expenses and related taxes. When determining the net realizable value of inventories, itis based on the conclusive evidence obtained and the purpose of holding the inventories and the impact of events afterthe balance sheet date are also considered.The Group usually accrues inventory depreciation provisions based on individual inventory items. For inventorieswith large quantities and low unit prices, inventory depreciation provisions are made according to the inventorycategory.On the balance sheet date, if the factors that previously caused the inventory value to be written down havedisappeared, the inventory depreciation provision shall be reversed within the amount originally accrued.
(4) Inventory system
The Group adopts the perpetual inventory system.
12. Long-term investment
Long-term equity investments include equity investments in subsidiaries, joint ventures and associates. The associatesof 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 frombusiness combinations under common control, the share of the book value of the owner’s equity of the merged partyin the consolidated financial statements of the ultimate controlling party will be used as the investment cost on thedate of merger ; not under the same control For long-term equity investments obtained through a business merger, theinvestment 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 byissuing equity securities, the fair value of the equity securities issued will be used as the initial investment cost.
(2) Subsequent measurement and profit and loss recognition methods
Investments in subsidiaries are accounted for using the cost method, unless the investment qualifies as held for sale;investments in associates and joint ventures are accounted for using the equity method.For long-term equity investments accounted for using the cost method, in addition to the actual price paid whenacquiring the investment or the cash dividends or profits that have been declared but not yet distributed included inthe consideration, the cash dividends or profits declared to be distributed by the investee shall be recognized asinvestment income for current profit and loss.For long-term equity investments accounted for using the equity method, if the initial investment cost is greater thanthe fair value share of the investee’s identifiable net assets that should be enjoyed at the time of investment, theinvestment cost of the long-term equity investment will not be adjusted; if the initial investment cost is less than theinvestment, the investee’s share of the identifiable net assets should be enjoyed If the fair value share of net assets isidentified, the book value of the long-term equity investment will be adjusted, and the difference will be included inthe current profit and loss of the investment.When accounting using the equity method, investment income and other comprehensive income are recognizedrespectively according to the share of the net profit or loss and other comprehensive income realized by the investeethat 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 shouldbe calculated will reduce the book value of the long-term equity investment accordingly; for other changes in theowner’s equity of the investee other than net profit and loss, other comprehensive income and profit distribution, thebook value of the long-term equity investment will be adjusted and Included in capital reserves (other capitalreserves). When confirming the share of the investee’s net profits and losses, the fair value of the investee’sidentifiable assets when the investment is obtained is used as the basis, and in accordance with the Group’saccounting policies and accounting periods, the net profit of the investee is determined. Make adjustments andconfirm.If it is possible to exert significant influence on the investee or implement joint control but does not constitute controldue to additional investment or other reasons, on the conversion date, the sum of the fair value of the original equityplus the cost of the new investment will be used as the initial investment cost to be accounted for by the equitymethod. If the original equity is classified as a non-trading equity instrument investment measured at fair value and itschanges are included in other comprehensive income, the related cumulative fair value changes originally included inother 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 equityinvestment 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 jointcontrol or significant influence. Measurement is used for accounting treatment, and the difference between the fairvalue and the book value is included in the current profit and loss. Other comprehensive income recognized due to theuse of the equity method for accounting in the original equity investment will be accounted for on the same basis asthe investee’s direct disposal of relevant assets or liabilities when the equity method is terminated; other changes inowner’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, andthe remaining equity after the disposal can jointly control or exert significant influence on the invested unit, it shall beaccounted for according to the equity method, and the remaining equity shall be regarded as owned. Adjustments willbe made using the equity method upon acquisition; if the remaining equity after disposal cannot jointly control orexert significant influence on the invested unit, the relevant provisions of Accounting Standards for BusinessEnterprises 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 andloss.If the Group’s shareholding ratio decreases due to capital increase by other investors, thereby losing control but it canexercise joint control or exert significant influence on the invested unit, the Group’s share of the invested unit due tothe capital increase shall be confirmed based on the new shareholding ratio. The difference between the share of netassets increased due to share expansion and the original book value of the long-term equity investment correspondingto the decrease in shareholding ratio that should be carried forward is included in the current profit and loss; then, thenew shareholding ratio is deemed to have been calculated since the investment was obtained. That is, adjustments aremade using the equity method of accounting.Unrealized gains and losses from internal transactions between the Group and its associates and joint ventures arecalculated based on the shareholding ratio and are attributable to the Group, and investment gains and losses arerecognized on an offsetting basis. However, if the unrealized internal transaction losses between the Group and theinvestee are impairment losses on the transferred assets, they will not be offset.
(3) Basis for determining joint control and significant influence on the invested unitJoint control refers to the shared control over an arrangement in accordance with relevant agreements, and therelevant activities of the arrangement must be decided only with the unanimous consent of the participants sharingcontrol rights. When judging whether there is joint control, first judge whether the arrangement is collectivelycontrolled by all participants or a combination of participants, and secondly whether decisions on activities related tothe arrangement must be unanimously agreed upon by the participants who collectively control the arrangement. If allparticipants or a group of participants must act in concert to determine the relevant activities of an arrangement, allparticipants or a group of participants are considered to collectively control the arrangement; if there are two or morecombinations of participants that can collectively Control of an arrangement does not constitute joint control. Whendetermining 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 andoperating policies of the investee, but it is not able to control or jointly control the formulation of these policies withother parties. When determining whether it can exert a significant influence on the investee, it is considered that theinvestor’s direct or indirect holdings of voting shares in the investee and the current executable potential voting rightsheld by the investor and other parties are assumed to be converted into control over the investee. The impact arisingfrom the acquisition of equity includes the impact of current convertible warrants, share options and convertiblecorporate bonds issued by the investee.When the Group directly or indirectly through subsidiaries owns more than 20% (inclusive) but less than 50% of thevoting shares of the invested unit, it is generally considered to have a significant influence on the invested unit, unlessthere is clear evidence that this situation It is unable to participate in the production and operation decisions of theinvested unit and does not have a significant impact; when the Group owns less than 20% (exclusive) of the votingshares of the invested unit, it is generally not considered to have a significant impact on the invested unit, unless thereis clear evidence that this Under such circumstances, we can participate in the production and operation decisions ofthe invested unit and have a significant influence.
(4) Impairment testing method and impairment provision accrual method
For investments in subsidiaries, associates and joint ventures, please refer to Note for the method of calculating assetimpairment.
13. Investment properties
Investment properties is property held to earn rentals or for capital appreciation, or both. The Group’s investmentproperties include leased land use rights, land use rights held and prepared to be transferred after appreciation, andleased buildings.There is an active real estate trading market in the location where the Group’s investment properties is located, andthe Group is able to obtain market prices and other relevant information of similar or similar real estate from the realestate 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 changesin 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 realestate in the active market; if the current market price of the same or similar real estate cannot be obtained, refer tothe latest transaction price of the same or similar real estate in the active market, and Consider the transactionsituation, transaction date, location and other factors to make a reasonable estimate of the fair value of the investmentproperty; or determine its fair value based on the expected future rental income and the present value of the relevantcash flows.In rare cases, if there is evidence that the Group acquires an investment property that is not under construction for thefirst time (or an existing property becomes an investment property for the first time after completing construction ordevelopment activities or changing its use), the Group will If the fair value of investment real estate cannot beobtained 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 propertiesafter deducting its book value and relevant taxes is included in the current profit and loss.
14. Fixed assets
(1) Fixed asset recognition conditions
The Group’s fixed assets refer to tangible assets held for the production of goods, provision of labour services,leasing or operation and management, and with a useful life of more than one accounting year.A fixed asset can only be recognized when the economic benefits related to the fixed asset are likely to flow into theenterprise 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 economicbenefits related to them are likely to flow into the Group and their costs can be reliably measured; daily repair costs offixed assets that do not meet the conditions for subsequent expenditures for capitalization of fixed assets shall beincluded in the cost of fixed assets when the economic benefits related to them are likely to flow into the Group andtheir costs can be measured reliably. When incurred, it shall be included in the current profit and loss or included inthe cost of related assets according to the beneficiary object. For the replaced part, its book value is derecognized.
(2) Depreciation methods
Depreciation methods for various types of fixed assets Fixed assets are depreciated using the straight-line methodbased on their costs less estimated residual values over their estimated useful lives Depreciation begins when a fixedasset 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 valueas follows:
| Category | Depreciation methods | Useful lives (years) | Residual rate% | Annual depreciation rate % |
| Buildings | The life average method | 20-35 years | 5% | 4.75% to 2.71% |
| Machinery equipment | The life average method | 8-20 years | 5% | 11.88% to 4.75% |
| Transportation and Others | The life average method | 5-8 years | 0 | 20% to 12.50% |
Among them, for fixed assets for which impairment provisions have been made, the depreciation rate should also becalculated 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 offixed assets.If there is a difference between the estimated useful life and the original estimate, the useful life of the fixed assetswill be adjusted; if there is a difference between the expected net residual value and the original estimate, theestimated 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, thefixed asset is derecognised. The amount of disposal income from the sale, transfer, scrapping or damage of fixedassets after deducting their book value and relevant taxes is included in the current profit and loss.
15. Construction in progress
The cost of the Group’s construction-in-progress is determined based on actual project expenditures, includingvarious necessary project expenditures incurred during the construction period, borrowing costs that should becapitalized before the project reaches its intended usable state, and other related expenses.Construction in progress is transferred to fixed assets when it reaches the intended usable state. The criteria forjudging the intended usable status should meet one of the following conditions: The physical construction (includinginstallation) of the fixed assets has been completed or substantially completed, trial production or trial operation hasbeen carried out, and the results show that the assets can operate normally. Or it can produce stably, or the trialoperation results show that it can operate normally. The amount of expenditure on the fixed assets constructed is verysmall or almost no longer occurs, and the fixed assets purchased have met the design or contract requirements, or arebasically consistent with the design or contract requirements.Note for the method of accruing asset impairment for construction in progress.The Group’s engineering materials refer to various materials prepared for projects under construction, includingengineering 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 theproject under construction, and the remaining engineering materials after the completion of the project are transferredto 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.
16. Borrowing costs
(1) Recognition principles for capitalization of borrowing costs
If the borrowing costs incurred by the Group are directly attributable to the acquisition, construction or production ofassets 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 beincluded in the cost of the relevant assets for current profit and loss. Borrowing costs will begin to be capitalized ifthey meet the following conditions at the same time:
1) Asset expenditures have occurred. Asset expenditures include expenditures in the form of cash payments, transfersof non-cash assets or interest-bearing debts for the acquisition, construction or production of assets that meetcapitalization conditions;
2) The borrowing costs have been incurred;
3) The necessary purchase, construction or production activities to bring the asset to its intended usable or saleablestate have begun.
(2) Borrowing cost capitalization period
When the assets purchased, constructed or produced by the Group that meet the capitalization conditions are ready forintended use or sale, the capitalization of borrowing costs will cease. Borrowing costs incurred after the assets thatmeet the capitalization conditions reach the intended usable or saleable state are recognized as expenses based on theamount 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 orproduction process, and the interruption lasts for more than 3 months, the capitalization of borrowing costs will besuspended; the borrowing costs during the normal interruption period will continue to be capitalized.
(3) Calculation method of capitalization rate of borrowing costs and capitalization amountThe interest expenses actually incurred on special borrowings in the current period, minus the interest income fromunused 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 specialborrowings. The capitalization amount is determined by multiplying the weighted average of asset expenditures bythe capitalization rate of the general borrowings occupied. The capitalization rate is calculated and determined basedon the weighted average interest rate of general borrowings.During the capitalization period, all exchange differences on special foreign currency borrowings are capitalized;exchange differences on general foreign currency borrowings are included in the current profits and losses.
17. Intangible assets
(1) Useful life and its determination basis, estimation, amortization method, or review procedure
The Group’s intangible assets include land use rights, patent rights and proprietary technologies, mineral miningrights and others.Intangible assets are initially measured based on cost, and their service life is analysed and judged when theintangible assets are acquired. If the service life is limited, from the time when the intangible asset becomes availablefor use, an amortization method that can reflect the expected realization method of the economic benefits related tothe asset shall be used, and amortization will be amortized within the estimated useful life; if the expected realizationmethod cannot be reliably determined, Amortization is carried out using the straight-line method; intangible assetswith 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 technologies | 5-20 years | Estimated useful life | Straight-line Depreciation | |
| Exploitation rights | 16-20 years | Warrants, expected income period | Straight-line Depreciation | |
| 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 limitedservice life. If it is different from the previous estimate, the original estimate is adjusted and treated as a change inaccounting estimate.If it is expected that an intangible asset will no longer bring future economic benefits to the enterprise on the balancesheet date, the entire book value of the intangible asset will be transferred to the current profit and loss.Note for the method of impairment for intangible assets.
(2) The scope of R&D expenditure collection and the related accounting treatmentThe Group's R&D expenditures are expenditures directly related to the company's R&D activities, including R&Dstaff salaries, direct investment costs, depreciation expenses and long-term deferred expenses, design expenses,equipment commissioning expenses, intangible asset amortization expenses, entrusted external research anddevelopment expenses, other expenses etc. The wages of R&D personnel are included in R&D expenditures based onproject working hours. Equipment, production lines, and sites shared between R&D activities and other productionand operation activities are included in R&D expenses according to the proportion of working hours and theproportion of area.The Group divides expenditures on internal research and development projects into expenditures in the research phaseand 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 technicallyfeasible to complete the intangible asset so that it can be used or sold; there is the intention to complete the intangibleasset and use or sell it; the intangible asset The way to generate economic benefits includes being able to prove thatthere is a market for the products produced using the intangible assets or that the intangible assets themselves have amarket. 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 theability to use or sell the intangible asset; the expenditures attributable to the development stage of the intangible assetcan be measured reliably. Development expenditures that do not meet the above conditions are included in the currentprofit and loss.The Group’s research and development projects will enter the development stage after meeting the above conditionsand 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 andare 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 production process areexpenditures 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 productionprocess have market promotion capabilities;·Have sufficient technical and financial support to carry out production process development activities andsubsequent large-scale production; and the expenditure on production process development can be reliably collected.If it is impossible to distinguish between expenditures in the research stage and expenditures in the development stage,all R&D expenditures incurred will be included in the current profit and loss.
18. Long-term assets impairment
For subsidiaries’ long-term investments, fixed assets, construction in process, right-of-use assets, intangible assets,goodwill, etc. (excluding inventories, investment properties measured according to the fair value model, deferred taxassets, 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 aresigns of impairment, the Group will estimate its recoverable amount and conduct an impairment test. Goodwillformed due to business combinations, intangible assets with indefinite useful lives and intangible assets that have notyet reached a usable state are subject to impairment testing every year regardless of whether there are signs ofimpairment.The recoverable amount is determined based on the higher of the asset’s fair value less disposal costs and the presentvalue of the asset’s expected future cash flows. The Group estimates the recoverable amount on the basis of a singleasset; if it is difficult to estimate the recoverable amount of an individual asset, the Group determines the recoverableamount of the asset group based on the asset group to which the asset belongs. The identification of an asset group isbased on whether the main cash inflow generated by the asset group is independent of the cash inflows of other assetsor asset groups.When the recoverable amount of an asset or asset group is lower than its book value, the Group will write down itsbook value to the recoverable amount, and the amount of the write-down will be included in the current profit andloss, 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 businesscombination shall be apportioned to the relevant asset group in a reasonable manner from the date of purchase; if it isdifficult to apportion it to the relevant asset group, it shall be apportioned to the relevant asset group. Related assetgroup combinations. The relevant asset group or asset group combination is an asset group or asset groupcombination that can benefit from the synergy effects of the business combination, and is no larger than the reportingsegment determined by the group.During impairment testing, if there are signs of impairment in an asset group or combination of asset groups related togoodwill, first conduct an impairment test on the asset group or combination of asset groups that does not includegoodwill, calculate the recoverable amount, and confirm the corresponding impairment. Then conduct an impairmenttest on the asset group or asset group combination containing goodwill, and compare its book value with therecoverable amount. If the recoverable amount is lower than the book value, the impairment loss of goodwill isrecognized.Once the asset impairment loss is recognized, it will not be reversed in subsequent accounting periods.
19. Long-term prepaid expenses
The long-term deferred expenses incurred by the Group are measured at actual cost and amortized evenly over theexpected beneficial period. For long-term deferred expense items that cannot benefit future accounting periods, theiramortized value shall be fully included in the current profit and loss.
20. Employee benefits
(1) Accounting for Short-term compensation
During the accounting period when employees provide services, the Group recognizes the actual employee wages,bonuses, social insurance premiums such as medical insurance premiums, work-related injury insurance premiums,maternity insurance premiums, and housing provident funds paid for employees based on prescribed standards andproportions as liabilities and included in the current profit and loss or related asset costs.
(2) Accounting for Post-employment benefits
Post-employment benefit plans include defined contribution plans and defined benefit plans. Among them, a definedcontribution plan refers to a post-employment benefit plan in which the enterprise no longer bears further paymentobligations after depositing a fixed fee into an independent fund; a defined benefit plan refers to a post-employmentbenefit plan other than a defined contribution plan.Defined contribution plansDefined contribution plans include basic pension insurance, unemployment insurance, etc.During the accounting period when employees provide services, the deposit amount payable calculated according tothe defined contribution plan is recognized as a liability and included in the current profit and loss or related assetcosts.
(3) Accounting for Termination benefits
If the Group provides dismissal benefits to employees, the employee compensation liabilities arising from thedismissal benefits will be recognized at the earliest of the following two times and included in the current profit andloss: When the Group cannot unilaterally withdraw the dismissal benefits provided due to the termination of labourrelations plan or layoff proposal; When the Group recognizes costs or expenses related to restructuring involvingpayment of termination benefits.
(4) Accounting for Other long-term benefits
Other long-term employee benefits provided by the Group to employees that meet the conditions of a definedcontribution plan will be handled in accordance with the above-mentioned relevant regulations on definedcontribution plans. If it is in compliance with the defined benefit plan, it shall be handled in accordance with therelevant provisions on the defined benefit plan mentioned above, but the “changes caused by the remeasurement ofthe net liabilities or net assets of the defined benefit plan” in the relevant employee compensation costs shall beincluded in the current profit and loss or related Asset cost.
21. Estimated liabilities
If the obligations related to contingencies meet the following conditions at the same time, the Group will recognizethem 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 fulfil the relevantcurrent obligations, and factors such as risks, uncertainties, and time value of money related to contingencies arecomprehensively considered. If the time value of money has a significant impact, the best estimate is determined bydiscounting the relevant future cash outflows. The Group reviews the book value of estimated liabilities on thebalance 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 athird party or other parties, the compensation amount can only be recognized separately as an asset when it isbasically certain that it will be received. The amount of compensation recognized shall not exceed the book value ofthe liability recognized.
22. Revenue
(1) General principles
The Group recognizes revenue when it fulfils its performance obligations in the contract, that is, when the customerobtains control of the relevant goods or services.If the contract contains two or more performance obligations, the Group will allocate the transaction price to eachindividual performance obligation based on the relative proportion of the stand-alone selling price of the goods orservices promised by each individual performance obligation on the contract commencement date. Revenue ismeasured at the transaction price of each individual performance obligation.When one of the following conditions is met, the performance obligation is performed within a certain period of time;otherwise, the performance obligation is performed at a certain point in time:
1) When the Group performs the contract, the customer obtains and consumes the economic benefits brought by theGroup’s performance.
2) Customers can control the goods under construction during the performance of the contract by the Group.
3) The goods produced by the Group during the performance of the contract have irreplaceable uses, and the Grouphas the right to collect payment for the cumulative performance part completed so far during the entire contractperiod.For performance obligations fulfilled within a certain period of time, the Group recognizes revenue based on theperformance progress within that period of time. When the progress of contract performance cannot be reasonablydetermined, if the costs incurred by the Group are expected to be compensated, revenue will be recognized based onthe 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 thecustomer obtains control of the relevant goods or services. When determining whether a customer has obtainedcontrol of goods or services, the Group will consider the following signs:
1) The Group has the current right to receive payment for the goods or services, that is, the customer has currentpayment obligations for the goods.
2) The Group has transferred the legal ownership of the goods to the customer, which means that the customeralready owns the legal ownership of the goods.
3) The Group has physically transferred the goods to the customer, that is, the customer has physically takenpossession of the goods.
4) The Group has transferred the main risks and rewards of ownership of the commodity to the customer, that is, thecustomer has obtained the main risks and rewards of ownership of the commodity.
5) The customer has accepted the goods or services.
6) Other signs indicating that the customer has obtained control of the product.
(2) Specific method
The Group’s revenue mainly comes from the following business types: sales of products, external provision ofconsulting and processing services.Selling goodsProducts sold The Group produces and sells float glass, photovoltaic glass, engineering glass, solar industry relatedproducts, electronic glass and display device, etc.For domestic sales, the Group transports the products to the agreed delivery location in accordance with theagreement or picks it up by the buyer. Revenue is recognized after the buyer confirms receipt or pick-up.For export sales, the Group recognises the revenue when it finished clearing goods for export and deliver the goodson board the vessel, or when the goods are delivered to a certain place specified in the contract.For solar energy and other industries’ photovoltaic power generation revenue, the Group recognizes the electricitywhen it is supplied to the provincial power grid company where each electric field is located, uses the settledelectricity volume confirmed by both parties as the electricity sales for that month, and uses the on-grid electricityprice approved by the National Development and Reform Commission or the electricity price agreed in the contractas the sales unit price.The credit periods granted by the Group to customers in various industries are consistent with the practices of variousindustries, and there is no significant financing component.The Group provides product quality assurance for the products sold and recognizes corresponding estimatedliabilities.The Group does not provide any additional services or additional quality assurance, so the product qualityassurance does not constitute a separate performance obligation.Glass products with sales return clauses, revenue recognition is limited to the amount of accumulated recognizedrevenue that is unlikely to result in a significant reversal. The Group recognizes liabilities based on the expectedreturn amount, and at the same time, recognizes the balance as an asset based on the book value of the goods expectedto be returned when the goods are transferred, minus the expected costs of recovering the goods (including theimpairment of the value of the returned goods).Provide consulting and processing servicesThe Group provides external consulting and processing services because customers obtain and consume the economicbenefits brought by the company’s performance of the contract while the company performs the contract. The Grouprecognizes revenue based on the progress of contract performance. The progress of contract performance isdetermined based on the proportion of costs incurred to the estimated total costs. On the balance sheet date, the Groupre-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 hasobtained the unconditional right to receive payment is recognized as accounts receivable, and the remaining portion isrecognized as contract assets. Accounts receivable and contract assets are recognized as expected credit losses. Lossprovisions are recognized as the basis; if the contract price received or receivable by the Group exceeds the labourservices completed, the excess will be recognized as contract liabilities. The Group’s contract assets and contractliabilities under the same contract are presented on a net basis.
23. Contract costs
Contract costs include incremental costs incurred to obtain the contract and contract performance costs.The incremental costs incurred to obtain the contract refer to costs that the company would not have incurred if it hadnot obtained the contract (such as sales commissions, etc.). If the cost is expected to be recovered, the company willrecognize it as the contract acquisition cost and as an asset. Other expenses incurred by the Company to obtain thecontract, except for the incremental costs expected to be recovered, are included in the current profits and losses whenincurred.If the cost incurred to fulfil the contract does not fall within the scope of other accounting standards for enterprisessuch as inventory and meets the following conditions, the company will recognize it as an asset as the contractperformance cost:
1) The cost is directly related to a current or expected contract, including direct labour, direct materials,manufacturing overhead (or similar expenses), costs clearly borne by the customer, and other costs incurred solelybecause of the contract;
2) This cost increases the Company’s resources for fulfilling its performance obligations in the future;
3) The cost is expected to be recovered.
Assets recognized for contract acquisition costs and assets recognized for contract performance costs (hereinafterreferred to as “assets related to contract costs”) are amortized on the same basis as the recognition of revenue fromgoods or services related to the assets and included in the current profit and loss.When the book value of assets related to contract costs is higher than the difference between the following two items,the company makes impairment provisions for the excess and recognizes it as asset impairment losses:
1) The remaining consideration that the company expects to obtain from the transfer of goods or services related tothe asset;
2) The estimated cost that will be incurred to transfer the relevant goods or services.
24. Government subsidies
Government subsidies are recognized when the conditions attached to the government subsidies are met and can bereceived.Government subsidies for monetary assets are measured based on the amount received or receivable. Governmentsubsidies for non-monetary assets are measured at fair value; if the fair value cannot be obtained reliably, they aremeasured 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 regardedas government subsidies.For government documents that do not clearly stipulate the subsidy objects and can form long-term assets, the part ofthe government subsidy corresponding to the asset value shall be regarded as the government subsidy related to theasset, and the remaining part shall be regarded as the government subsidy related to income; if it is difficult todistinguish, the government subsidy shall be regarded as the government subsidy related to the asset. The whole isregarded as a government subsidy related to income.Government subsidies related to assets are recognized as deferred income and are included in profits and losses ininstalments according to a reasonable and systematic method during the use period of the relevant assets. Ifgovernment 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 insubsequent periods, they will be included in deferred income and will be included in the relevant costs or losses. Theloss is included in the current profit and loss during the period during which the loss is recognized. Governmentsubsidies measured according to the nominal amount are directly included in the current profit and loss. The Groupadopts 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 businessessence. 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 thetime of initial recognition, the book value of the assets is adjusted; if there is a balance of relevant deferred income,the Carrying Amount of the relevant deferred income is offset, and the excess is included in the current profit and loss;in other cases, it will be directly included in the current profit and loss.
25. Deferred tax assets and deferred tax liabilities
Income tax includes current income tax and deferred income tax. Except for adjustments to goodwill arising frombusiness 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 temporarydifferences 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 taxabletemporary 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 thefollowing characteristics: the transaction is not a business combination, and the transaction affects neither accountingprofits nor taxable income when the transaction occurs initial recognition (Except for individual transactions thatresult in equal amounts of taxable temporary differences and deductible temporary differences arising from the assetsand liabilities);
(2) For taxable temporary differences related to investments in subsidiaries, joint ventures and associates, the time ofreversal of the temporary differences can be controlled and the temporary differences are likely not to be reversed inthe foreseeable future.For deductible temporary differences, deductible losses and tax credits that can be carried forward to future years, theGroup shall use it to offset the deductible temporary differences, deductible losses and tax credits to the extent that itis probable that it will be available. The deferred income tax assets generated will be recognized to the limit of thefuture 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 anequal 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 ifthe following conditions are met at the same time, the corresponding deferred income tax assets are recognized: thetemporary differences are likely to be reversed in the foreseeable future. And it is likely to obtain taxable income inthe 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 atthe applicable tax rate during the period when the asset is expected to be recovered or the liability is settled, and theincome tax impact of the expected method of recovering the asset or settling the liability on the balance sheet date isreflected.On the balance sheet date, the Group reviews the book value of deferred income tax assets. If it is probable thatsufficient 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 isprobable 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 netamount 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 taxliabilities on a net basis;
(2) Deferred income tax assets and deferred income tax liabilities are related to income taxes levied by the same taxcollection and administration department on the same taxpayer within the group.
26. Leases
On the contract inception date, the Group, as a lessee or lessor, evaluates whether the customer in the contract has theright to obtain substantially all the economic benefits generated from the use of the identified assets during the useperiod, and has the right to direct the use of the identified assets during the use period. If a party in a contract transfersthe right to control the use of one or more identified assets within a certain period in exchange for consideration, theGroup determines that the contract is a lease or contains a lease.
(1) The accounting policies for right-of-use assets are shown in Note.
Lease liabilities are initially measured based on the present value of the unpaid lease payments at the beginning of thelease 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 discountrate. Lease payments include: fixed payments and substantive fixed payments, if there are lease incentives, theamount related to lease incentives is deducted; variable lease payments that depend on the index or ratio; the exerciseprice of the purchase option, provided that the lessee is reasonable It is certain that the option will be exercised; theamount required to be paid to exercise the option to terminate the lease, provided that the lease term reflects that thelessee will exercise the option to terminate the lease; and the amount expected to be paid based on the residual valueof the guarantee provided by the lessee. Subsequently, the interest expense of the lease liability for each period duringthe 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 profitand loss when actually incurred.Short-term leaseA 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 andlosses on a straight-line basis during each period of the lease term.Low-value asset leasingLow-value asset leases refer to leases where the value of a single leased asset is less than 100,000 yuan when it is abrand-new asset.The Group will include the lease payments for low-value asset leases into the relevant asset costs or current profitsand 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 specificcircumstances 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 changeas a separate lease: 1) The lease change expands the scope of the lease by adding the right to use one or more leasedassets; 2) Increased The consideration is equivalent to the individual price of the extended portion of the lease,adjusted for the circumstances of the contract.If the lease change is not accounted for as a separate lease, on the effective date of the lease change, the Group re-allocates the consideration of the contract after the change, re-determines the lease term, and calculates it based on thechanged 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 Groupwill accordingly reduce the book value of the right-of-use assets, and include the gains or losses related to the partialor 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 theright-of-use assets accordingly.
(2) The accounting policies for the Group acts as lessor
When the Group acts as a lessor, leases that substantially transfer all risks and rewards related to asset ownership arerecognized as finance leases, and leases other than finance leases are recognized as operating leases.Financial leaseIn financial leases, the Group’s net lease investment on the date of the lease term is recorded as the accounting valueof finance lease receivables. The net lease investment is the unguaranteed residual value and the lease receivables thathave not been received on the date of the lease term are calculated based on the amount included in the lease. Thesum of present values discounted with interest rates. As the lessor, the Group calculates and recognizes interestincome for each period during the lease term based on fixed periodic interest rates. Variable lease payments obtainedby the Group as a lessor that are not included in the measurement of the net lease investment are included in thecurrent profit and loss when actually incurred.The derecognition and impairment of finance lease receivables shall be accounted for in accordance with theprovisions of Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of FinancialInstruments and Accounting Standards for Business Enterprises No. 23 - Transfer of Financial Assets.Operating leaseFor rents in operating leases, the Group recognizes current profits and losses according to the straight-line method ineach period during the lease term. The initial direct expenses incurred in connection with the operating lease shall becapitalized, amortized during the lease period on the same basis as the rental income recognition, and included in thecurrent profit and loss in instalments. Variable lease payments related to operating leases that are not included in thelease receipts are included in the current profit and loss when they actually occur.Lease changesIf an operating lease changes, the Group will account for it as a new lease from the effective date of the change, andthe amount of lease receipts received in advance or receivable related to the lease before the change is regarded as theamount 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 thechange as a separate lease: 1) The change expands the scope of the lease by adding the right to use one or more leasedassets; 2) The increased consideration. The amount is equivalent to the individual price of the extended portion of thelease 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 leaseunder the following circumstances: 1) If the change takes effect on the lease commencement date, the lease will beclassified 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 bookvalue of the leased asset; 2) If the change takes effect on the lease commencement date, the lease will be classified asfinancing For leases, the Group shall conduct accounting treatment in accordance with the provisions of AccountingStandards for Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments regardingmodification or renegotiation of contracts.
27. Critical accounting policies and accounting estimates
Safety production costsAccording to relevant regulations of the Ministry of Finance and National Administration of Work Safety, asubsidiary of the Group which is engaged in producing and selling polysilicon appropriates safety production costs onfollowing basis:
(a) 4.5% for revenue below RMB10 million (inclusive) of the year;(b) 2.25% for the revenue between RMB10 million to RMB100 million (inclusive) of the year;(c) 0.55% for the revenue between RMB100 million to RMB1 billion (inclusive) of the year;(d) 0.2% for the revenue above RMB1 billion of the year.The safety production costs are mainly used for the overhaul, renewal and maintenance of safety facilities. The safetyproduction costs are charged to costs of related products or profit or loss when appropriated, and safety productioncosts in equity account are credited correspondingly. When using the special reserve, if the expenditures are expensesin nature, the expenses incurred are offset against the special reserve directly when incurred. If the expenditures arecapital expenditures, when projects are completed and transferred to fixed assets, the special reserve should be offsetagainst the cost of fixed assets, and a corresponding accumulated depreciation are recognized. The fixed assets are nolonger be depreciated in future.Significant accounting judgments and estimatesThe Group continuously evaluates the important accounting estimates and key assumptions adopted based onhistorical experience and other factors, including reasonable expectations for future events. The important accountingestimates and key assumptions that are likely to cause a significant adjustment in the book value of assets andliabilities in the next fiscal year are as follows:
Classification of financial assetsThe Group’s significant judgments involved in determining the classification of financial assets include analysis ofbusiness models and contractual cash flow characteristics.Factors considered include the way to evaluate and report the performance of financial assets to key managementpersonnel, the risks that affect the performance of financial assets and their management methods, and relevantbusiness managers. How to get paid, etc.When the Group evaluates whether the contractual cash flows of financial assets are consistent with the basic lendingarrangements, it makes the following main judgments: whether the time distribution or amount of the principal maychange during the duration due to early repayment; whether the interest is only Includes time value of money, creditrisk, other fundamental lending risks and consideration against costs and profits. For example, whether the amount ofearly repayment only reflects the unpaid principal and interest based on the unpaid principal, as well as reasonablecompensation 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 accountsreceivable and the expected credit loss rate, and determines the expected credit loss rate based on the probability ofdefault and the loss given default rate. When determining the expected credit loss rate, the Group uses internalhistorical 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 ofeconomic 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 ProgressAs of the balance sheet date, the Company assesses whether there are any indications of impairment for non-currentassets 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 thehigher of the net amount after deducting disposal costs from fair value and the present value of estimated future cashflows. The net amount after deducting disposal costs from fair value is determined by referencing the sales agreementprices of similar assets in fair transactions or observable market prices, minus incremental costs directly attributableto 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 thepresent 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 supportableassumptions.Goodwill impairmentThe Group assesses whether goodwill is impaired at least annually. This requires an estimate of the value in use of theasset group to which goodwill is assigned. When estimating value in use, the Group needs to estimate future cashflows from the asset group and select an appropriate discount rate to calculate the present value of future cash flows.R&D expenditureWhen determining the amount to be capitalized, management must make assumptions regarding the expected futurecash generation of the asset, the discount rate that should be applied, and the expected period of benefit.Deferred tax assetsDeferred tax assets should be recognized for all unused tax losses to the extent that it is probable that sufficienttaxable profits will be available against which the losses can be utilised. This requires management to use a lot ofjudgment to estimate the timing and amount of future taxable profits, combined with tax planning strategies, todetermine the amount of deferred income tax assets that should be recognized.
28. Changes in important accounting policies and accounting estimates
(1) Important changes in accounting policies
Accounting Standards for Business Enterprises Interpretation No. 17The Ministry of Finance issued the Interpretation No. 17 of Accounting Standards for Business Enterprises (FinancialAccounting [2023] No. 21) in October 2023 (hereinafter referred to as “Interpretation No. 17”). It furtherstandardized and clarified the classification of current and non-current liabilities, disclosure of supplier financingarrangements and accounting treatments of sale and leaseback transactions, which was effective from 1 January, 2024.The adoption of Interpretation No. 17 had no significant impact on the financial condition and operating results of theGroup.
VI. TAXATION
1. The main categories and rates of taxes applicable to the Group are set out below:
| Category | Taxable basis | Tax rate |
| Enterprise income tax | Taxable income | 16.5%. 25% |
| Value-added tax (“VAT”) | Taxable value-added amount (Tax payable is calculated using the taxable sales amount multiplied by the applicable tax rate less deductible VAT input of the current period) | 3%-13% |
| Urban maintenance and construction tax | Actual amount of turnover tax paid | 1%-7% |
| Educational surtax | Actual amount of turnover tax paid | 5% |
2. Tax incentives
Tianjin CSG Energy-Saving Glass Co., Ltd. (“Tianjin Energy Conservation”) passed review on a high and new techenterprise in 2021 and obtained the Certificate of High and New Tech Enterprise, the period of validity is three years.It applies to 15% tax rate for three years since 2021. As the company is currently going through the 2024 review of itshigh and new tech enterprise certificate, the income tax rate of 15% was provisionally adopted for the report period.Dongguan CSG Architectural Glass Co., Ltd. (“Dongguan CSG”) passed review on a high and new tech enterprise in2022 and obtained the Certificate of High and New Tech Enterprise, the period of validity is three years. It applies to15% tax rate for three years since 2022.Wujiang CSG East China Architectural Glass Co., Ltd. (“Wujiang CSG Engineering”) passed review on a high andnew tech enterprise in 2023 and obtained the Certificate of High and New Tech Enterprise, the period of validity isthree years. It applies to 15% tax rate for three years since 2023.Dongguan CSG Solar Glass Co., Ltd. (“Dongguan CSG Solar”) passed review on a high and new tech enterprise in2023 and obtained the Certificate of High and New Tech Enterprise, the period of validity is three years. It applies to15% tax rate for three years since 2023.Yichang CSG Polysilicon Co., Ltd. (“Yichang CSG Polysilicon”) passed review on a high and new tech enterprise in2023 and obtained the Certificate of High and New Tech Enterprise, the period of validity is three years. It applies to15% tax rate for three years since 2023.Dongguan CSG PV-tech Co., Ltd. (“Dongguan CSG PV-tech”) passed review on a high and new tech enterprise in2022 and obtained the Certificate of High and New Tech Enterprise, the period of validity is three years. It applies to15% tax rate for three years since 2022.Hebei Shichuang Glass Co., Ltd. (“Hebei Shichuang”) passed review on a high and new tech enterprise in 2022 andobtained the Certificate of High and New Tech Enterprise, the period of validity is three years. It applies to 15% taxrate for three years since 2022.Wujiang CSG Glass Co., Ltd. (“Wujiang CSG”) passed review on a high and new tech enterprise in 2023, andobtained the Certificate of High and New Tech Enterprise, and the period of validity was three years. It applies to15% tax rate for three years since 2023.Xianning CSG Glass Co Ltd. (“Xianning CSG”) passed review on a high and new tech enterprise in 2023, andobtained the Certificate of High and New Tech Enterprise, and the period of validity was three years. It applies to15% tax rate for three years since 2023.
Xianning CSG Energy-Saving Glass Co., Ltd. (“Xianning CSG Energy-Saving”) passed review on a high and newtech enterprise in 2021, and obtained the Certificate of High and New Tech Enterprise, and the period of validity wasthree years. It applies to 15% tax rate for three years since 2021. As the company is currently going through the 2024review of its high and new tech enterprise certificate, the income tax rate of 15% was provisionally adopted for thereport period.Yichang CSG Photoelectric Glass Co., Ltd. (“Yichang CSG Photoelectric”) passed review on a high and new techenterprise in 2021, and obtained the Certificate of High and New Tech Enterprise, and the period of validity was threeyears. It applies to 15% tax rate for three years since 2021. As the company is currently going through the 2024review of its high and new tech enterprise certificate, the income tax rate of 15% was provisionally adopted for thereport period.Yichang CSG Display Co., Ltd (“Yichang CSG Display”) passed review on a high and new tech enterprise in 2021,and obtained the Certificate of High and New Tech Enterprise, and the period of validity was three years. It applies to15% tax rate for three years since 2021. As the company is currently going through the 2024 review of its high andnew tech enterprise certificate, the income tax rate of 15% was provisionally adopted for the report period.Qingyuan CSG New Energy-Saving Materials Co., Ltd. (“Qingyuan CSG Energy-Saving”) passed review on a highand new tech enterprise in 2022, and obtained the Certificate of High and New Tech Enterprise, and the period ofvalidity was three years. It applies to 15% tax rate for three years since 2022.Hebei CSG Glass Co Ltd. (“Hebei CSG”) passed review on a high and new tech enterprise in 2021, and obtained theCertificate of High and New Tech Enterprise, and the period of validity was three years. It applies to 15% tax rate forthree years since 2021. As the company is currently going through the 2024 review of its high and new tech enterprisecertificate, the income tax rate of 15% was provisionally adopted for the report period.Shenzhen CSG Applied Technology Co Ltd. (“Shenzhen Technology”) passed review on a high and new techenterprise in 2021, and obtained the Certificate of High and New Tech Enterprise, and the period of validity was threeyears. It applies to 15% tax rate for three years since 2021. As the company is currently going through the 2024review of its high and new tech enterprise certificate, the income tax rate of 15% was provisionally adopted for thereport period.Xianning CSG Photoelectric Glass Co., Ltd. (“Xianning Photoelectric”) passed review on a high and new techenterprise in 2022 and obtained the Certificate of High and New Tech Enterprise, the period of validity is three years.It applies to 15% tax rate for three years since 2022.Zhaoqing CSG Energy Saving Glass Co., Ltd. (hereinafter referred to as "Zhaoqing Energy Saving Company")passed review on a high and new tech enterprise in 2022 and obtained the Certificate of High and New TechEnterprise, the period of validity is three years. It applies to 15% tax rate for three years since 2022.Sichuan CSG Energy Conservation Glass Co., Ltd. (“Sichuan CSG Energy Conservation”) obtains enterprise incometax preferential treatment for Western Development, and temporarily calculates enterprise income tax at a tax rate of15% for current year.Chengdu CSG Glass Co., Ltd. (“Chengdu CSG”) obtains enterprise income tax preferential treatment for WesternDevelopment, and temporarily calculates enterprise income tax at a tax rate of 15% for current year.Xi'an CSG Energy Saving Glass Technology Co., Ltd. (hereinafter referred to as "Xi'an Energy Saving Company")obtains enterprise income tax preferential treatment for Western Development, and temporarily calculates enterpriseincome tax at a tax rate of 15% for current year.Guangxi CSG New Energy Materials Technology Co., Ltd. (hereinafter referred to as "Guangxi New EnergyMaterials Company") obtains enterprise income tax preferential treatment for Western Development, and temporarilycalculates enterprise income tax at a tax rate of 15% for current year.Qinghai CSG New Energy Technology Co., Ltd. (hereinafter referred to as "Qinghai New Energy Company") obtainsenterprise income tax preferential treatment for Western Development, and temporarily calculates enterprise income
tax at a tax rate of 15% for current year.Yichang CSG New Energy Co., Ltd. (hereinafter referred to as "Yichang New Energy Company"), Zhaoqing CSGNew Energy Technology Co., Ltd. (hereinafter referred to as "Zhaoqing New Energy Company"), Xianning CSG PVEnergy Co., Ltd. (“Xianning PV Energy”), Zhanjiang CSG New Energy Co., Ltd. (“Zhanjiang PV Energy”), andAnhui CSG Photovoltaic Energy Co., Ltd. (“Anhui PV Energy”) are public infrastructure project specially supportedby the state in accordance with the Article 87 in Implementing Regulations of the Law of the People's Republic ofChina on Enterprise Income Tax, and can enjoy the tax preferential policy of “three-year exemptions and three-yearhalves”, that is, starting from the tax year when the first revenue from production and operation occurs, the enterpriseincome tax is exempted from the first to the third year, while half of the enterprise income tax is collected for thefollowing three years.Anhui CSG Quartz Material Co., Ltd. (hereinafter referred to as "Anhui Quartz Company") was recognized as a high-tech enterprise in 2023 and has obtained the "High-tech Enterprise Certificate". The certificate is valid for three yearsand a 15% income tax rate is applicable for three years starting from 2023.Anhui CSG New Energy Materials Technology Co., Ltd. (hereinafter referred to as "Anhui New Energy Company")was recognized as a high-tech enterprise in 2023 and has obtained the "High-tech Enterprise Certificate". Thecertificate is valid for three years and a 15% income tax rate is applicable for three years starting from 2023.According to the "Announcement on the Additional Value-Added Tax Deduction Policy for AdvancedManufacturing Enterprises" (Announcement No. 43, 2023, of the Ministry of Finance and the State Administration ofTaxation), regarding the Company's high-tech enterprises, from January 1, 2023 to December 31, 2027, advancedmanufacturing enterprises are allowed to deduct an additional 5% of the deductible input tax for the current period todeduct the value-added tax payable.
VII. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1. Cash at bank and on hand
Unit: RMB
| Item | 30 June 2024 | 1 January 2024 |
| Cash at bank | 3,477,639,345 | 3,051,261,655 |
| Other currency funds | 141,639,610 | 25,512,563 |
| Total | 3,619,278,955 | 3,076,774,218 |
| Including: Total overseas deposits | 43,301,497 | 31,005,196 |
| The total amount of cash and cash equivalents that are restricted to use due to mortgage, pledge or freezing etc. | 141,639,610 | 25,512,563 |
2. Notes receivable
（1）Notes receivable listed by category
Unit: RMB
| Item | 30 June 2024 | 1 January 2024 |
| Bank acceptance | 1,474,867,926 | 1,510,946,903 |
| Trade acceptance | 94,257,560 | 82,573,591 |
| Total | 1,569,125,486 | 1,593,520,494 |
（2）Classification by bad debt accrual method
Unit: RMB
| Category | 30 June 2024 | ||||
| Carrying amount | Provision for bad debts | Book value | |||
| Amount | Proportion | Amount | Proportion | ||
| Provision for bad debts on an individual basis | |||||
| Provision for bad debts on a portfolio basis | 1,571,049,110 | 100% | 1,923,624 | 0.12% | 1,569,125,486 |
| Including: | |||||
| Bank acceptance | 1,474,867,926 | 94% | 1,474,867,926 | ||
| Trade acceptance | 96,181,184 | 6% | 1,923,624 | 2% | 94,257,560 |
| Total | 1,571,049,110 | 100% | 1,923,624 | 0.12% | 1,569,125,486 |
(Continued)
| Category | 1 January 2024 | ||||
| Carrying amount | Provision for bad debts | Book value | |||
| Amount | Proportion | Amount | Proportion | ||
| Provision for bad debts on an | |||||
Provision for bad debts on a basis of trade acceptance portfolio:
Unit: RMB
（3）Bad debt provisions accrued, recovered or reversed in the current period
Bad debt provisions in the current period:
Unit: RMB
| Category | 1 January 2024 | Change in the current period | 30 June 2024 | |||
| Accrued | Recovered or reversed | Written off | Others | |||
| Trade acceptance | 1,685,175 | 658,694 | 420,245 | 1,923,624 | ||
| Total | 1,685,175 | 658,694 | 420,245 | 1,923,624 | ||
（4）Notes receivables that the Company has pledged at the end of the period
Unit: RMB
| Item | Pledged amount |
| Bank acceptance | 1,092,137,999 |
| Total | 1,092,137,999 |
（5）Endorsed or discounted notes receivable have not yet matured on the balance sheet
Unit: RMB
| Item | Derecognized amount at the end of the period | Un-derecognized amount at the end of the period |
| Bank acceptance | 253,785,857 | |
| Trade acceptance | 3,905,265 |
Category
| Category | 1 January 2024 | ||||
| Carrying amount | Provision for bad debts | Book value | |||
| Amount | Proportion | Amount | Proportion | ||
| individual basis | |||||
| Provision for bad debts on a portfolio basis | 1,595,205,669 | 100% | 1,685,175 | 0.11% | 1,593,520,494 |
| Including: | |||||
| Bank acceptance | 1,510,946,903 | 95% | 1,510,946,903 | ||
| Trade acceptance | 84,258,766 | 5% | 1,685,175 | 2% | 82,573,591 |
| Total | 1,595,205,669 | 100% | 1,685,175 | 0.11% | 1,593,520,494 |
Item
| Item | 30 June 2024 | ||
| Carrying amount | Provision for bad debts | Provision proportion | |
| Trade acceptance | 96,181,184 | 1,923,624 | 2% |
| Total | 96,181,184 | 1,923,624 | |
| Item | Derecognized amount at the end of the period | Un-derecognized amount at the end of the period |
| Total | 257,691,122 |
3. Accounts receivable
（1）Disclosure by age
Unit: RMB
| Aging | 30 June 2024 | 1 January 2024 |
| Within 1 year (including 1 year) | 1,748,714,872 | 1,799,401,050 |
| 1 to 2 years | 34,569,102 | 42,338,430 |
| 2 to 3 years | 63,255,818 | 156,855,077 |
| Over 3 years | 192,219,106 | 81,310,642 |
| Total | 2,038,758,898 | 2,079,905,199 |
（2）Classification by bad debt accrual method
Unit: RMB
| Category | 30 June 2024 | ||||
| Carrying amount | Provision for bad debts | Book value | |||
| Amount | Proportion | Amount | Provision proportion | ||
| Provision for bad debts on an individual basis | 171,165,314 | 8% | 155,522,612 | 91% | 15,642,702 |
| Provision for bad debts on a portfolio basis | 1,867,593,584 | 92% | 37,354,650 | 2% | 1,830,238,934 |
| Including: | |||||
| Receivables from unrelated parties | 1,867,593,584 | 92% | 37,354,650 | 2% | 1,830,238,934 |
| Total | 2,038,758,898 | 100% | 192,877,262 | 9% | 1,845,881,636 |
(Continued)
| Category | 1 January 2024 | ||||
| Carrying amount | Provision for bad debts | Book value | |||
| Amount | Proportion | Amount | Provision proportion | ||
| Provision for bad debts on an individual basis | 176,357,014 | 8% | 160,074,840 | 91% | 16,282,174 |
| Provision for bad debts on a portfolio basis | 1,903,548,185 | 92% | 38,033,951 | 2% | 1,865,514,234 |
| Including: | |||||
| Receivables from unrelated parties | 1,903,548,185 | 92% | 38,033,951 | 2% | 1,865,514,234 |
| Total | 2,079,905,199 | 100% | 198,108,791 | 10% | 1,881,796,408 |
Provision for bad debts on an individual basis:
Unit: RMB
| Item | 1 January 2024 | 30 June 2024 | ||||
| Carrying amount | Provision for bad debts | Carrying amount | Provision for bad debts | Provision proportion | Reason for provision | |
| Total of single-item accrual customers | 176,357,014 | 160,074,840 | 171,165,314 | 155,522,612 | 91% | Mainly due to the inability to honor commercial acceptance bills issued by Evergrande and its subsidiaries that have been endorsed by customers, and the transfer of accounts receivable from bills receivable, as well as partial or full provision for bad debt reserves due to business disputes or deterioration of customer operations. |
| Total | 176,357,014 | 160,074,840 | 171,165,314 | 155,522,612 | 91% | |
Provision for bad debts on a portfolio basis:
Unit: RMB
| Item | 30 June 2024 | ||
| Carrying amount | Provision for bad debts | Provision proportion | |
| Combined customers | 1,867,593,584 | 37,354,650 | 2% |
| Total | 1,867,593,584 | 37,354,650 | |
（3）Bad debt provisions accrued, recovered or reversed in the current period
Bad debt provisions in the current period:
Unit: RMB
| Category | 1 January 2024 | Change in the current period | 30 June 2024 | ||
| Accrued | Recovered or reversed | Written off | |||
| Bad debt provisions for accounts receivable | 198,108,791 | 9,227,299 | 14,387,203 | 71,625 | 192,877,262 |
| Total | 198,108,791 | 9,227,299 | 14,387,203 | 71,625 | 192,877,262 |
（4）Actual write-off of accounts receivable in the current period
Unit: RMB
| Item | Write-off amount |
| Accounts receivable | 71,625 |
（5）Accounts receivable details of the top 5 closing balances by debtors
Unit: RMB
| Name | Accounts receivable closing balance | Percentage in total accounts receivable balance | Provision for bad debts closing balance |
| Total balances for the five largest accounts receivable | 611,275,089 | 30% | 12,225,502 |
| Total | 611,275,089 | 30% | 12,225,502 |
4. Receivables financing
Unit: RMB
| Item | 30 June 2024 | 1 January 2024 |
| Notes receivable | 622,130,245 | 529,945,623 |
| Total | 622,130,245 | 529,945,623 |
5. Other receivables
Unit: RMB
| Item | 30 June 2024 | 1 January 2024 |
| Other receivables | 173,913,608 | 177,957,033 |
| Total | 173,913,608 | 177,957,033 |
（1）Other receivables
1）Other receivables categorized by nature
Unit: RMB
| Nature | 30 June 2024 | 1 January 2024 |
| Receivables from special fund for talent (note) | 171,000,000 | 171,000,000 |
| Payments made on behalf of other parties | 31,769,484 | 40,125,087 |
| Advances to suppliers | 10,366,164 | 10,366,164 |
| Refundable deposits | 9,862,520 | 9,033,990 |
| Petty cash | 1,354,833 | 594,514 |
| Others | 13,614,899 | 13,797,012 |
| Total | 237,967,900 | 244,916,767 |
Note: This fund is a subsidy fund given to the Group by the government. The Company entrusted its wholly-owned subsidiaryYichang CSG Silicon Materials Co., Ltd. to collect the fund. The Yichang High-tech Zone Management Committee also paid thefull amount to Yichang CSG Silicon in 2014. After receiving the funds, Yichang CSG Silicon Materials Co., Ltd. transferred thefull amount to Yichang Hongtai Real Estate Co., Ltd. without appropriate approval by the then Company's board of directors andother competent authorities. Yichang CSG Silicon Materials Co., Ltd. received the above funds from 21 February 2014 to 28 April2014 and then transferred the entire amount to Yichang Hongtai Real Estate Co., Ltd.The Company filed an infringement compensation lawsuit against Zeng Nan and others and Yichang Hongtai Real Estate Co., Ltd.on 15 December 2021, and Shenzhen Intermediate People's Court officially accepted the lawsuit on 28 January 2022. The firstinstance of the case was completed in Shenzhen Intermediate People's Court on 21 June 2022. On 4 June 2024, the Companyreceived the first instance Civil Judgment issued by Shenzhen Intermediate People's Court, which rejected all of the Company'slitigation requests. In June 2024, the Company filed an appeal to Guangdong Higher People's Court, and the case is currently in theprocess of the second instance.
2） Disclosure by age
Unit: RMB
| Aging | 30 June 2024 | 1 January 2024 |
| Within 1 year (including 1 year) | 22,878,544 | 22,612,560 |
| 1 to 2 years | 2,168,217 | 1,819,789 |
| 2 to 3 years | 15,777,311 | 20,535,190 |
| Over 3 years | 197,143,828 | 199,949,228 |
| 3 to 4 years | 836,485 | 1,058,546 |
| 4 to 5 years | 676,868 | 450,650 |
| Over 5 years | 195,630,475 | 198,440,032 |
| Total | 237,967,900 | 244,916,767 |
3） Classification by bad debt accrual method
Unit: RMB
| Category | 30 June 2024 | ||||
| Carrying amount | Provision for bad debts | Book value | |||
| Amount | Proportion | Amount | Provision proportion | ||
| Provision for bad debts on an individual basis | 182,823,641 | 77% | 63,123,642 | 35% | 119,699,999 |
| Provision for bad debts on a portfolio basis | 55,144,259 | 23% | 930,650 | 2% | 54,213,609 |
| Including: | |||||
| Unrelated party combination | 55,144,259 | 23% | 930,650 | 2% | 54,213,609 |
| Total | 237,967,900 | 100% | 64,054,292 | 27% | 173,913,608 |
(Continued)
| Category | 1 January 2024 | ||||
| Carrying amount | Provision for bad debts | Book value | |||
| Amount | Proportion | Amount | Provision proportion | ||
| Provision for bad debts on an individual basis | 188,393,981 | 77% | 65,908,811 | 35% | 122,485,170 |
| Provision for bad debts on a portfolio basis | 56,522,786 | 23% | 1,050,923 | 2% | 55,471,863 |
| Including: | |||||
| Unrelated party combination | 56,522,786 | 23% | 1,050,923 | 2% | 55,471,863 |
| Total | 244,916,767 | 100% | 66,959,734 | 27% | 177,957,033 |
Provision for bad debts accrued on the basis of a general model of expected credit losses:
Unit: RMB
| Provision for bad debt | Stage 1 | Stage 2 | Stage 3 | Total |
| Expected credit loss in the next 12 months | Expected credit loss for the whole period (no credit impairment) | Expected credit loss for the whole period (with credit impairment) | ||
| Amount on 1 January 2024 | 1,050,923 | 65,908,811 | 66,959,734 | |
| Carrying amount on 1 January 2024 that in this period: | ||||
| Provision for the period | 84,702 | 84,702 | ||
| Reverse for the period | 204,975 | 2,339,177 | 2,544,152 | |
| Write-off for the period | 445,992 | 445,992 | ||
| Amount on 30 June 2024 | 930,650 | 63,123,642 | 64,054,292 |
4） Bad debt provisions accrued, recovered or reversed in the current periodBad debt provisions in the current period:
Unit: RMB
| Category | 1 January 2024 | Change in the current period | 30 June 2024 | |||
| Accrued | Recovered or reversed | Written off | Others | |||
| Bad debt provisions for other receivables | 66,959,734 | 84,702 | 2,544,152 | 445,992 | 64,054,292 | |
| Total | 66,959,734 | 84,702 | 2,544,152 | 445,992 | 64,054,292 | |
5） Actual write-off of other receivables in the current period
Unit: RMB
| Item | Write-off amount |
| Other receivables | 445,992 |
6）Other receivables details of the top 5 closing balances by debtors
Unit: RMB
| Name | Nature of business | 30 June 2024 | Ageing | Percentage in total other receivables balance | Provision for bad debts |
| Company 1 | Independent third party | 171,000,000 | Over 5 years | 72% | 51,300,000 |
| Company 2 | Independent third party | 14,000,000 | 2-3 years | 6% | 280,000 |
| Company 3 | Independent third party | 11,556,004 | Over 5 years | 5% | 231,120 |
| Company 4 | Independent third party | 10,366,164 | Over 5 years | 4% | 10,366,164 |
| Company 5 | Independent third party | 1,800,000 | Over 5 years | 1% | 36,000 |
| Name | Nature of business | 30 June 2024 | Ageing | Percentage in total other receivables balance | Provision for bad debts |
| Total | 208,722,168 | 88% | 62,213,284 |
6. Advances to suppliers
（1）Listing by ages
Unit: RMB
| Aging | 30 June 2024 | 1 January 2024 | ||
| Amount | Proportion | Amount | Proportion | |
| Within 1 year (including 1 year) | 116,975,400 | 97% | 155,075,823 | 100% |
| 1 to 2 years | 3,122,473 | 3% | 395,256 | |
| 2 to 3 years | 64,013 | 1,766 | ||
| Over 3 years | 1,766 | 3,800 | ||
| Total | 120,163,652 | 155,476,645 | ||
（2）Advance payment of the top 5 closing balances by prepayment objects
| Item | Advance payment closing balance | Percentage in total advances to suppliers balance |
Total balances for the fivelargest advances to suppliers
| Total balances for the five largest advances to suppliers | 56,805,492 | 47% |
7. Inventories
（1）Inventory classification
Unit: RMB
| Item | 30 June 2024 | 1 January 2024 | ||||
| Carrying amount | Provision for decline in the value of inventories | Book value | Carrying amount | Provision for decline in the value of inventories | Book value | |
| Raw materials | 648,135,092 | 19,537,174 | 628,597,918 | 568,803,335 | 1,935,371 | 566,867,964 |
| Work in progress | 34,111,901 | 34,111,901 | 29,941,046 | 29,941,046 | ||
| Finished goods | 1,236,911,623 | 32,317,391 | 1,204,594,232 | 928,685,781 | 28,179,241 | 900,506,540 |
| Turnover materials | 111,621,873 | 183,668 | 111,438,205 | 93,093,127 | 183,882 | 92,909,245 |
| Total | 2,030,780,489 | 52,038,233 | 1,978,742,256 | 1,620,523,289 | 30,298,494 | 1,590,224,795 |
（2） Provision for decline in the value of inventories
Unit: RMB
| Item | 1 January 2024 | Increase in current period | Decrease in current period | 30 June 2024 | ||
| Provision | Others | Reversal or write-off | Others | |||
| Raw materials | 1,935,371 | 18,073,648 | 471,845 | 19,537,174 | ||
| Finished goods | 28,179,241 | 23,242,267 | 19,104,117 | 32,317,391 | ||
| Turnover materials | 183,882 | 214 | 183,668 | |||
| Total | 30,298,494 | 41,315,915 | 19,576,176 | 52,038,233 | ||
8. Non-current assets due within one year
Unit: RMB
| Item | 30 June 2024 | 1 January 2024 |
| Fixed-term deposit in bank due within one year | 84,191,224 | |
| Total | 84,191,224 |
9. Other current assets
Unit: RMB
| Item | 30 June 2024 | 1 January 2024 |
| VAT to be offset | 353,275,416 | 260,361,670 |
| Enterprise income tax prepaid | 2,601,848 | 18,127,608 |
| VAT input to be recognised | 15,127,715 | 33,577,420 |
| Term deposits | 42,800,000 | 40,000,000 |
| Total | 413,804,979 | 352,066,698 |
10. Investment properties
（1）Investment properties measured using the fair value model
√ Applicable □ Not applicable
Unit: RMB
| Item | House, building and related land use rights |
| I. 1 January 2024 | 290,368,105 |
| II. Movement in the current period | 2,343,753 |
| III. 30 June 2024 | 292,711,858 |
11. Fixed assets
Unit: RMB
| Item | 30 June 2024 | 1 January 2024 |
| Fixed assets | 12,785,878,380 | 13,145,568,631 |
| Total | 12,785,878,380 | 13,145,568,631 |
（1）List of fixed assets
Unit: RMB
| Item | Buildings | Machinery and equipment | Motor vehicles and others | Total |
| I. Original book value： | ||||
| 1. 1 January 2024 | 6,308,032,051 | 16,145,236,673 | 369,115,738 | 22,822,384,462 |
| 2. Increase in current period | 114,474,348 | 242,020,867 | 13,208,585 | 369,703,800 |
| （1）Acquisition | 5,322,104 | 15,430,543 | 11,059,842 | 31,812,489 |
| （2）Transfers from construction in progress | 105,629,308 | 226,075,188 | 331,704,496 | |
| （3）Other increases | 3,522,936 | 515,136 | 2,148,743 | 6,186,815 |
| 3. Decrease in current period | 5,110,586 | 740,029,055 | 5,579,475 | 750,719,116 |
| （1）Disposal or retirement | 1,335,279 | 52,816,468 | 4,761,135 | 58,912,882 |
| （2）Transfer to construction in progress | 3,775,307 | 670,065,001 | 673,840,308 | |
| （3）Other decreases | 17,147,586 | 818,340 | 17,965,926 | |
| 4. 30 June 2024 | 6,417,395,813 | 15,647,228,485 | 376,744,848 | 22,441,369,146 |
| II. Accumulative depreciation | ||||
| 1. 1 January 2024 | 1,411,838,090 | 6,622,522,037 | 273,719,361 | 8,308,079,488 |
| 2. Increase in current period | 106,825,930 | 452,458,689 | 20,853,213 | 580,137,832 |
| （1）Accrual | 106,814,755 | 452,448,127 | 20,631,114 | 579,893,996 |
| （2）Other increases | 11,175 | 10,562 | 222,099 | 243,836 |
| 3. Decrease in current period | 1,913,617 | 573,342,258 | 4,852,372 | 580,108,247 |
| （1）Disposal or retirement | 25,409,256 | 4,427,593 | 29,836,849 | |
| （2）Transfer to construction in progress | 1,913,617 | 547,495,429 | 549,409,046 | |
| （3）Other decreases | 437,573 | 424,779 | 862,352 | |
| 4. 30 June 2024 | 1,516,750,403 | 6,501,638,468 | 289,720,202 | 8,308,109,073 |
| III. Impairment provision | ||||
| 1. 1 January 2024 | 152,839,987 | 1,215,616,873 | 279,483 | 1,368,736,343 |
| 2. Increase in current period | 2,247,363 | 416,190 | 2,663,553 | |
| （1）Transfers from construction in progress | 2,247,363 | 416,190 | 2,663,553 | |
| 3. Decrease in current period | 1,335,279 | 22,682,924 | 24,018,203 | |
| （1）Disposal or retirement | 1,335,279 | 22,682,924 | 24,018,203 |
| Item | Buildings | Machinery and equipment | Motor vehicles and others | Total |
| 4. 30 June 2024 | 151,504,708 | 1,195,181,312 | 695,673 | 1,347,381,693 |
| IV. Book value | ||||
| 1. 30 June 2024 | 4,749,140,702 | 7,950,408,705 | 86,328,973 | 12,785,878,380 |
| 2. 1 January 2024 | 4,743,353,974 | 8,307,097,763 | 95,116,894 | 13,145,568,631 |
（2）Fixed assets without ownership certificate
Unit: RMB
| Item | Book value | Reasons for not yet obtaining certificates of title |
| Buildings | 926,436,414 | Have submitted the required documents and are in the process of application, or the related land use right certificate pending |
12. Construction in progress
Unit: RMB
| Item | 30 June 2024 | 1 January 2024 |
| Construction in progress | 5,860,245,516 | 4,325,016,420 |
| Total | 5,860,245,516 | 4,325,016,420 |
（1）Details of construction in progress
Unit: RMB
| Item | 30 June 2024 | 1 January 2024 | ||||
| Carrying amount | Provision for impairment loss | Book value | Carrying amount | Provision for impairment loss | Book value | |
| A new high-purity crystalline silicon project with an annual output of 50,000 tons in Haixi Prefecture, Qinghai Province | 3,491,475,262 | 3,491,475,262 | 2,646,430,785 | 2,646,430,785 | ||
| Guangxi Beihai Photovoltaic Green Energy Industry Park (Phase I) Project | 1,254,365,091 | 1,254,365,091 | 728,103,811 | 728,103,811 | ||
| Yichang CSG Polysilicon Technical Transformation Project | 539,100,224 | 56,888,576 | 482,211,648 | 507,815,356 | 56,888,576 | 450,926,780 |
| Wujiang Float (650TD) Photovoltaic Calendering Line Technical Transformation Project | 117,914,338 | 117,914,338 | 154,717 | 154,717 | ||
| Qingyuan CSG Phase I Upgrading Technical Transformation Project | 230,292,811 | 116,909,920 | 113,382,891 | 228,055,647 | 116,909,920 | 111,145,727 |
| Xi'an CSG energy-saving glass production line project | 50,156,346 | 50,156,346 | 222,583,993 | 222,583,993 | ||
| Xianning energy-saving production line reconstruction and expansion construction project | 30,589,560 | 30,589,560 | 25,585,501 | 25,585,501 | ||
| Wujiang Float Processing Department Production Line Technical Upgrading and Transformation | 16,585,825 | 16,585,825 | ||||
| Dongguan Photovoltaic Building B 450MWPERC battery technology upgrade project | 186,866,743 | 184,998,076 | 1,868,667 | 186,866,743 | 184,998,076 | 1,868,667 |
| Anhui Fengyang newly built 37.6 MW distributed photovoltaic power generation project | 83,354,432 | 83,354,432 | ||||
| Other projects | 303,227,704 | 1,531,816 | 301,695,888 | 59,057,376 | 4,195,369 | 54,862,007 |
| Total | 6,220,573,904 | 360,328,388 | 5,860,245,516 | 4,688,008,361 | 362,991,941 | 4,325,016,420 |
（2）Movement of significant projects of construction in progress
Unit: RMB
| Project name | Budget | 1 January 2024 | Increase in current period | Transfer to fixed assets in current period | Other decreases in current period | 30 June 2024 | Proportion between engineering input and budget | Engineering progress | Amount of borrowing costs capitalized | Including: Amount of borrowing costs capitalized in current period | Capitalization rate for current period | Source of fund |
| A new high-purity crystalline silicon project with an annual output of 50,000 tons in Haixi Prefecture, Qinghai Province | 4,498,192,210 | 2,646,430,785 | 857,680,692 | 12,636,215 | 3,491,475,262 | 78% | 78% | 24,314,504 | 20,062,535 | 4.13% | Internal fund and bank loan | |
| Guangxi Beihai Photovoltaic Green Energy Industry Park (Phase I) Project | 4,942,051,800 | 728,103,811 | 541,274,995 | 15,013,715 | 1,254,365,091 | 33% | 33% | 9,743,845 | 5,121,348 | 2.44% | Internal fund and bank loan | |
| Qingyuan CSG Phase I Upgrading Technical Transformation Project | 534,870,000 | 228,055,647 | 2,247,649 | 10,485 | 230,292,811 | 5% | 5% | Internal fund and bank loan | ||||
| Xi'an CSG energy-saving glass production line project | 494,000,000 | 222,583,993 | 17,899,051 | 186,903,430 | 3,423,268 | 50,156,346 | 60% | 60% | 3,688,930 | 1,749,339 | 3.54% | Internal fund and bank loan |
| Anhui Fengyang newly built 37.6 MW distributed photovoltaic power generation project | 146,640,000 | 83,354,432 | 6,150,317 | 89,504,749 | 61% | 100% | 543,559 | 140,754 | 4.07% | Internal fund and bank loan | ||
| Total | 10,615,754,010 | 3,908,528,668 | 1,425,252,704 | 304,068,594 | 3,423,268 | 5,026,289,510 | 38,290,838 | 27,073,976 |
（3） Provision for impairment of construction in progress in the current period
Unit: RMB
13. Right-of-use assets
Unit: RMB
| Item | Land leases | Building leases | Total |
| I. Original book value: | |||
| 1. 1 January 2024 | 21,823,035 | 2,984,415 | 24,807,450 |
| 2. Increase in current period | |||
| 3. Decrease in current period | |||
| 4. 30 June 2024 | 21,823,035 | 2,984,415 | 24,807,450 |
| II. Accumulative depreciation | |||
| 1. 1 January 2024 | 3,020,601 | 149,221 | 3,169,822 |
| 2. Increase in current period | 819,440 | 149,221 | 968,661 |
| (1) Provision | 819,440 | 149,221 | 968,661 |
| 3. Decrease in current period | |||
| 4. 30 June 2024 | 3,840,041 | 298,442 | 4,138,483 |
| III. Impairment provisions | |||
| IV. Book value | |||
| 1. 30 June 2024 | 17,982,994 | 2,685,973 | 20,668,967 |
| 2. 1 January 2024 | 18,802,434 | 2,835,194 | 21,637,628 |
Project
| Project | 1 January 2024 | Increase in the current period | Decrease in the current period | 30 June 2024 | Reason for provision | |
| Provision for the current period | Other increases | |||||
| Qingyuan CSG Phase I Upgrading Technical Transformation Project | 116,909,920 | 116,909,920 | ||||
| Dongguan Photovoltaic Building B 450MWPERC battery technology upgrade project | 184,998,076 | 184,998,076 | ||||
| Yichang CSG Polysilicon Technical Transformation Project | 56,888,576 | 56,888,576 | ||||
| Other projects | 4,195,369 | 2,663,553 | 1,531,816 | |||
| Total | 362,991,941 | 2,663,553 | 360,328,388 | -- | ||
14. Intangible assets
（1）Details of intangible assets
Unit: RMB
| Item | Land use rights | Patents and proprietary technologies | Exploitation rights | Others | Total |
| I. Original book value： | |||||
| 1. 1 January 2024 | 1,469,814,142 | 563,753,185 | 1,091,671,546 | 72,584,426 | 3,197,823,299 |
| 2. Increase in current period | 3,754,433 | 3,754,433 | |||
| （1）Acquisition | 331,165 | 331,165 | |||
| （2）Others | 3,423,268 | 3,423,268 | |||
| 3. Decrease in current period | |||||
| 4. 30 June 2024 | 1,469,814,142 | 563,753,185 | 1,091,671,546 | 76,338,859 | 3,201,577,732 |
| II. Accumulative amortization | |||||
| 1. 1 January 2024 | 293,150,658 | 262,978,745 | 40,776,980 | 56,056,887 | 652,963,270 |
| 2. Increase in current period | 15,040,247 | 17,526,919 | 38,510,655 | 2,345,599 | 73,423,420 |
| （1）Accrual | 15,040,247 | 17,526,919 | 38,510,655 | 2,345,599 | 73,423,420 |
| 3. Decrease in current period | |||||
| 4. 30 June 2024 | 308,190,905 | 280,505,664 | 79,287,635 | 58,402,486 | 726,386,690 |
| III. Provision for impairment | |||||
| 1. 1 January 2024 | 54,316,431 | 13,374 | 54,329,805 | ||
| 2. Increase in current period | |||||
| 3. Decrease in current period | |||||
| 4. 30 June 2024 | 54,316,431 | 13,374 | 54,329,805 | ||
| IV. Book value | |||||
| 1. 30 June 2024 | 1,161,623,237 | 228,931,090 | 1,012,383,911 | 17,922,999 | 2,420,861,237 |
| 2. 1 January 2024 | 1,176,663,484 | 246,458,009 | 1,050,894,566 | 16,514,165 | 2,490,530,224 |
（2）Land use rights without ownership certificate
Unit: RMB
| Item | Book value | Reasons for not yet obtaining certificates of title |
| Land use rights | 4,037,062 | The management of the Company believes that there is no substantive legal obstacle to obtaining the relevant land use certificate, and it will not have a significant adverse impact on the operation of the Group. |
15. Goodwill
（1）Original book value of goodwill
Unit: RMB
| Name of invested unit or items forming goodwill | 1 January 2024 | Increase in current period | Decrease in current period | 30 June 2024 |
| Tianjin CSG Architectural Glass Co., Ltd | 3,039,946 | 3,039,946 | ||
| Xianning CSG Photoelectric | 4,857,406 | 4,857,406 | ||
| Shenzhen CSG Display | 389,494,804 | 389,494,804 | ||
| Guangdong Licheng Construction Engineering Co., Ltd. | 696,000 | 696,000 | ||
| Total | 398,088,156 | 398,088,156 |
（2）Provision for impairment of goodwill
Unit: RMB
| Name of invested unit or matters forming goodwill | 1 January 2024 | Increase in current period | Decrease in current period | 30 June 2024 |
| Shenzhen CSG Display | 389,494,804 | 389,494,804 | ||
| Total | 389,494,804 | 389,494,804 |
16. Long-term prepaid expenses
Unit: RMB
| Item | 1 January 2024 | Increase in current period | Amortized amounts in current period | Other decreases | 30 June 2024 |
| Various prepaid expenses | 18,764,429 | 5,315,249 | 4,176,445 | 19,903,233 | |
| Total | 18,764,429 | 5,315,249 | 4,176,445 | 19,903,233 |
17. Deferred tax assets and liabilities
（1）Deferred income tax assets before offsetting
Unit: RMB
| Item | 30 June 2024 | 1 January 2024 | ||
| Deductible temporary differences | Deferred tax assets | Deductible temporary differences | Deferred tax assets | |
| Provision for asset impairments | 965,206,298 | 146,093,254 | 988,603,433 | 149,485,849 |
| Deductible losses | 845,370,792 | 145,081,978 | 500,056,218 | 88,815,735 |
| Item | 30 June 2024 | 1 January 2024 | ||
| Deductible temporary differences | Deferred tax assets | Deductible temporary differences | Deferred tax assets | |
| Government grants | 183,168,218 | 27,987,160 | 171,767,926 | 26,346,666 |
| Accrued expenses | 5,378,170 | 806,725 | 6,854,739 | 1,028,211 |
| Depreciation of fixed assets, etc. | 167,391,235 | 25,857,310 | 124,810,353 | 19,386,825 |
| Total | 2,166,514,713 | 345,826,427 | 1,792,092,669 | 285,063,286 |
（2）Deferred income tax liabilities before offsetting
Unit: RMB
| Item | 30 June 2024 | 1 January 2024 | ||
| Taxable temporary differences | Deferred tax liabilities | Taxable temporary differences | Deferred tax liabilities | |
| Depreciation of fixed assets | 535,139,952 | 81,313,308 | 571,131,285 | 86,841,423 |
| Investment properties | 368,564,944 | 55,284,742 | 368,564,944 | 55,284,742 |
| Total | 903,704,896 | 136,598,050 | 939,696,229 | 142,126,165 |
（3）Deferred income tax assets or liabilities presented with net amount after offsetting
Unit: RMB
| Item | Offset amount of closing deferred tax assets and liabilities | Closing deferred tax assets or liabilities after offsetting | Offset amount of opening deferred tax assets and liabilities | Opening deferred tax assets or liabilities after offsetting |
| Deferred tax assets | 61,567,137 | 284,259,290 | 62,038,255 | 223,025,031 |
| Deferred tax liabilities | 61,567,137 | 75,030,913 | 62,038,255 | 80,087,910 |
（4）Detail about unrecognized deferred income tax assets
Unit: RMB
| Item | 30 June 2024 | 1 January 2024 |
| Deductible temporary differences and losses | 1,069,961,338 | 1,168,354,313 |
| Total | 1,069,961,338 | 1,168,354,313 |
（5）Deductible losses of unconfirmed deferred income tax assets shall expire in the following years
Unit: RMB
| Year | 30 June 2024 | 1 January 2024 | Notes |
| 2024 | 103,008,917 | ||
| 2025 | 502,484,452 | 502,484,452 | |
| 2026 | 557,374,493 | 557,374,493 | |
| 2027 | 524,904 | 524,904 |
| Year | 30 June 2024 | 1 January 2024 | Notes |
| 2028 | 4,961,547 | 4,961,547 | |
| 2029 | 4,615,942 | ||
| Total | 1,069,961,338 | 1,168,354,313 |
18. Other non-current assets
Unit: RMB
| Item | 30 June 2024 | 1 January 2024 | ||||
| Carrying amount | Impairment provision | Book value | Carrying amount | Impairment provision | Book value | |
| Prepayment for equipment and project | 219,021,356 | 219,021,356 | 390,090,354 | 390,090,354 | ||
| Prepayment for lease of land use rights | 13,771,500 | 13,771,500 | 6,510,000 | 6,510,000 | ||
| Total | 232,792,856 | 232,792,856 | 396,600,354 | 396,600,354 | ||
19. The assets with the ownership or use right restricted
Unit: RMB
| Item | 30 June 2024 | |||
| Carrying amount | Book value | Restricted type | Restricted situation | |
| Cash at bank and on hand | 141,639,610 | 141,639,610 | Restricted circulation of deposits, freezes, etc | Cash at bank and on hand |
| Note receivable | 1,092,137,999 | 1,092,137,999 | Restricted pledge | Note receivable |
| Fixed assets/ Construction in progress | 927,490,640 | 627,742,974 | Restricted financing lease | Fixed assets/ Construction in progress |
| Total | 2,161,268,249 | 1,861,520,583 | ||
(Continued)
| Item | 1 January 2024 | |||
| Carrying amount | Book value | Restricted type | Restricted situation | |
| Cash at bank and on hand | 25,512,563 | 25,512,563 | Restricted circulation of deposits, freezes, etc | Cash at bank and on hand |
| Note receivable | 1,157,485,085 | 1,157,485,085 | Restricted pledge | Note receivable |
| Fixed assets | 416,947,659 | 106,982,081 | Restricted financing lease | Fixed assets |
| Total | 1,599,945,307 | 1,289,979,729 | ||
20. Short-term borrowings
（1）Classification of short-term borrowings
Unit: RMB
| Item | 30 June 2024 | 1 January 2024 |
| Guaranteed loan | 264,263,560 | 320,893,730 |
| Credit loan | 23,426,590 | 108,426,590 |
| Discounted bills | 660,732 | 7,533,263 |
| Total | 288,350,882 | 436,853,583 |
21. Notes payable
Unit: RMB
| Type | 30 June 2024 | 1 January 2024 |
| Trade acceptance | 140,454,268 | 90,836,911 |
| Bank acceptance | 2,157,963,721 | 1,950,516,278 |
| Supply chain financial notes | 211,208,967 | |
| Total | 2,509,626,956 | 2,041,353,189 |
22. Accounts payable
（1）Accounts payable listed
Unit: RMB
| Item | 30 June 2024 | 1 January 2024 |
| Materials payable | 1,111,343,655 | 938,666,542 |
| Equipment payable | 964,492,585 | 994,552,522 |
| Construction expenses payable | 1,062,144,697 | 1,206,275,761 |
| Freight payable | 140,025,365 | 143,114,233 |
| Utilities payable | 52,138,174 | 50,982,984 |
| Others | 8,769,760 | 8,032,560 |
| Total | 3,338,914,236 | 3,341,624,602 |
（2）Significant accounts payable aged more than one year
Unit: RMB
| Item | 30 June 2024 | Reasons |
| Engineering and equipment payments, etc | 237,901,234 | Due to the unfinished final accounts of related projects, they have not been settled yet |
| Total | 237,901,234 |
23. Other payables
Unit: RMB
| Item | 30 June 2024 | 1 January 2024 |
| Interest payable | 8,863,897 | 8,751,408 |
| Item | 30 June 2024 | 1 January 2024 |
| Dividends payable | 767,673,027 | |
| Other payables | 384,072,373 | 475,990,469 |
| Total | 1,160,609,297 | 484,741,877 |
（1）Interest payable
Unit: RMB
| Item | 30 June 2024 | 1 January 2024 |
| Interest of long-term borrowings with periodic payments of interest and return of principal at maturity | 8,366,465 | 8,082,760 |
| Interest of short-term borrowings | 497,432 | 668,648 |
| Total | 8,863,897 | 8,751,408 |
（2）Dividends payable
Unit: RMB
| Item | 30 June 2024 | 1 January 2024 |
| Dividends payable to ordinary shareholders | 767,673,027 | |
| Total | 767,673,027 |
（3）Other payables
1）Disclosure of other payables by nature
Unit: RMB
| Item | 30 June 2024 | 1 January 2024 |
| Guarantee deposits received from construction contractors | 302,056,930 | 351,439,479 |
| Accrued cost of sales (i) | 45,393,923 | 67,861,475 |
| Payable for contracted labour costs | 6,776,382 | 27,689,963 |
| Temporary receipts for third parties | 3,310,676 | 7,277,368 |
| Others | 26,534,462 | 21,722,184 |
| Total | 384,072,373 | 475,990,469 |
（i）This item mainly includes expenses that have been incurred but for which invoices have not been obtained at the end of theperiod, comprising maintenance charges, professional service fee and travelling expenses etc.
24. Contract liabilities
Unit: RMB
| Item | 30 June 2024 | 1 January 2024 |
| Contract liabilities | 343,813,781 | 362,538,795 |
| Total | 343,813,781 | 362,538,795 |
25. Employee benefits payable
（1）Presentation of employee benefits payable
Unit: RMB
| Item | 1 January 2024 | Increase in current period | Decrease in current period | 30 June 2024 |
| I. Short-term employee benefits payable | 480,172,235 | 1,054,918,344 | 1,209,826,545 | 325,264,034 |
| II. Defined contribution plans payable | 96,586,266 | 96,586,266 | ||
| III. Termination benefits | 3,165,561 | 3,530,676 | 6,696,237 | |
| Total | 483,337,796 | 1,155,035,286 | 1,313,109,048 | 325,264,034 |
（2）Presentation of short-term benefits
Unit: RMB
| Item | 1 January 2024 | Increase in current period | Decrease in current period | 30 June 2024 |
| 1. Wages and salaries, bonus, allowances and subsidies | 455,508,551 | 972,169,126 | 1,128,756,917 | 298,920,760 |
| 2. Social security contributions | 41,777,652 | 41,679,372 | 98,280 | |
| Including: Medical insurance | 36,531,600 | 36,433,320 | 98,280 | |
| Work injury insurance | 4,418,288 | 4,418,288 | ||
| Maternity insurance | 827,764 | 827,764 | ||
| 3. Housing funds | 880,089 | 28,356,932 | 28,383,625 | 853,396 |
| 4. Labour union funds and employee education funds | 23,783,595 | 12,614,634 | 11,006,631 | 25,391,598 |
| Total | 480,172,235 | 1,054,918,344 | 1,209,826,545 | 325,264,034 |
（3）Defined benefit plans
Unit: RMB
| Item | 1 January 2024 | Increase in current period | Decrease in current period | 30 June 2024 |
| 1. Basic pensions | 92,585,461 | 92,585,461 | ||
| 2. Unemployment insurance | 4,000,805 | 4,000,805 | ||
| Total | 96,586,266 | 96,586,266 |
26. Taxes payable
Unit: RMB
| Item | 30 June 2024 | 1 January 2024 |
| Enterprise income tax payable | 88,847,010 | 50,021,929 |
| VAT payable | 46,214,028 | 44,410,002 |
| Housing property tax payable | 13,309,437 | 8,590,406 |
| Individual income tax payable | 4,930,376 | 6,633,485 |
| Urban maintenance and construction tax payable | 2,100,204 | 2,667,504 |
| Educational surtax payable | 1,736,347 | 2,209,407 |
| Environmental tax payable | 1,523,674 | 1,842,557 |
| Others | 8,116,521 | 7,032,123 |
| Total | 166,777,597 | 123,407,413 |
27. Non-current liabilities due within one year
Unit: RMB
| Item | 30 June 2024 | 1 January 2024 |
| Long-term borrowings due within one year | 1,523,840,827 | 1,206,872,898 |
| Long-term account payable due within one year | 15,541,083 | 40,939,718 |
| Lease liabilities due within one year | 1,103,785 | 1,079,363 |
| Total | 1,540,485,695 | 1,248,891,979 |
28. Other current liabilities
Unit: RMB
| Item | 30 June 2024 | 1 January 2024 |
| Output VAT to be transferred | 39,834,736 | 44,121,680 |
| Supply chain financial notes, etc. | 121,676,275 | |
| Notes that did not meet the conditions for derecognition | 257,030,390 | 288,534,731 |
| Total | 296,865,126 | 454,332,686 |
29. Long-term borrowings
（1）Types of long-term borrowings
Unit: RMB
| Item | 30 June 2024 | 1 January 2024 |
| Guaranteed loan | 6,019,971,035 | 5,478,771,574 |
| Credit loan | 2,254,490,000 | 1,949,750,000 |
| Subtotal | 8,274,461,035 | 7,428,521,574 |
| Less: Long-term borrowings due within one year | 1,523,840,827 | 1,206,872,898 |
| Item | 30 June 2024 | 1 January 2024 |
| Total | 6,750,620,208 | 6,221,648,676 |
30. Lease liabilities
Unit: RMB
| Item | 30 June 2024 | 1 January 2024 |
| Lease liabilities | 15,783,063 | 16,213,925 |
| Less: Lease liabilities due within one year | 1,103,785 | 1,079,363 |
| Total | 14,679,278 | 15,134,562 |
31. Long-term account payable
Unit: RMB
| Item | 30 June 2024 | 1 January 2024 |
| Long-term account payable | 510,957,893 | 88,204,163 |
（1）Long-term payable listed by nature
Unit: RMB
| Item | 30 June 2024 | 1 January 2024 |
| Finance lease payable | 526,498,976 | 129,143,881 |
| Less: Long-term payables due within one year | 15,541,083 | 40,939,718 |
| Total | 510,957,893 | 88,204,163 |
32. Estimated liabilities
Unit: RMB
| Item | 30 June 2024 | 1 January 2024 | Causes |
| Retirement obligation | 12,031,343 | 11,798,141 | Estimated mine rehabilitation costs |
| Pending litigation | 1,251,941 | ||
| Total | 12,031,343 | 13,050,082 |
33. Deferred income
Unit: RMB
| Item | 1 January 2024 | Increase in current period | Decrease in current period | 30 June 2024 |
| Government grants | 430,143,830 | 38,341,600 | 27,058,673 | 441,426,757 |
| Total | 430,143,830 | 38,341,600 | 27,058,673 | 441,426,757 |
34. Share capital
Unit: RMB
| 1 January 2024 | Movement for current period | 30 June 2024 | |||||
| New issues | Bonus issue | Transfer from capital surplus | Others | Sub-total | |||
| Total number of ordinary shares | 3,070,692,107 | 3,070,692,107 | |||||
35. Capital surplus
Unit: RMB
| Item | 1 January 2024 | Increase in current period | Decrease in current period | 30 June 2024 |
| Share premium | 649,166,589 | 649,166,589 | ||
| Other capital surplus | -58,427,175 | -58,427,175 | ||
| Total | 590,739,414 | 590,739,414 |
36. Other comprehensive income
Unit: RMB
| Item | 1 January 2024 | Other comprehensive income for current period | 30 June 2024 | |||
| Actual amount before tax for current period | Less: Income tax expenses | Attributable to parent company after tax | Attributable to minority shareholders after tax | |||
| I. Other comprehensive income items which will be reclassified subsequently to profit or loss | 177,384,471 | 1,217,389 | 178,601,860 | |||
| Difference on translation of foreign currency financial statements | 13,682,674 | 1,217,389 | 14,900,063 | |||
| Financial rewards for energy-saving technical retrofits | 2,550,000 | 2,550,000 | ||||
| Income generated when self-property and land use rights are converted into investment property | 161,151,797 | 161,151,797 | ||||
| Total | 177,384,471 | 1,217,389 | 178,601,860 | |||
37. Special reserve
Unit: RMB
| Item | 1 January 2024 | Increase in current period | Decrease in current period | 30 June 2024 |
| Safety production costs | 1,411,139 | 3,139,075 | 1,186,314 | 3,363,900 |
| Total | 1,411,139 | 3,139,075 | 1,186,314 | 3,363,900 |
38. Surplus reserve
Unit: RMB
| Item | 1 January 2024 | Increase in current period | Decrease in current period | 30 June 2024 |
| Statutory surplus reserve | 1,276,210,730 | 1,276,210,730 | ||
| Discretionary surplus reserve | 127,852,568 | 127,852,568 | ||
| Total | 1,404,063,298 | 1,404,063,298 |
39. Undistributed profits
Unit: RMB
| Item | H1 2024 | H1 2023 |
| Undistributed profits at the end of the previous period before adjustments | 8,806,549,788 | 7,786,968,455 |
| Undistributed profits at the beginning of the period after adjustments | 8,806,549,788 | 7,786,968,455 |
| Add: Net profits attributable to shareholders of parent company in current period | 733,111,562 | 889,478,780 |
| Less: Appropriation for statutory surplus reserve | ||
| Ordinary share dividends payable | 767,673,027 | |
| Undistributed profits at the end of the period | 8,771,988,323 | 8,676,447,235 |
40. Operating income and operating costs
Unit: RMB
| Item | H1 2024 | H1 2023 | ||
| Revenue | Cost | Revenue | Cost | |
| Principal operation | 8,026,214,086 | 6,330,753,454 | 8,269,985,146 | 6,451,841,635 |
| Other operations | 52,756,565 | 2,585,051 | 119,355,099 | 43,554,296 |
| Total | 8,078,970,651 | 6,333,338,505 | 8,389,340,245 | 6,495,395,931 |
41. Taxes and surcharges
Unit: RMB
| Item | H1 2024 | H1 2023 |
| Housing property tax | 24,262,618 | 20,987,873 |
| Land use rights | 13,293,655 | 10,894,279 |
| Urban maintenance and construction tax | 10,630,321 | 18,676,773 |
| Educational surtax | 9,140,452 | 14,886,892 |
| Stamp tax | 4,953,753 | 6,454,506 |
| Environmental tax | 2,960,497 | 2,815,691 |
| Others | 2,664,381 | 1,662,990 |
| Total | 67,905,677 | 76,379,004 |
42. General and administrative expenses
Unit: RMB
| Item | H1 2024 | H1 2023 |
| Employee benefits | 213,862,214 | 198,481,504 |
| Depreciation and amortization | 106,703,302 | 70,577,321 |
| General office expenses | 14,096,760 | 14,943,321 |
| Labour union funds | 12,098,064 | 10,994,483 |
| Entertainment fees | 10,454,102 | 8,997,162 |
| Consulting advisers | 5,655,089 | 3,919,242 |
| Canteen costs | 4,955,469 | 5,641,281 |
| Business travel expenses | 4,479,971 | 4,438,258 |
| Water and electricity fees | 3,475,192 | 3,542,076 |
| Vehicle use fees | 2,277,382 | 3,500,710 |
| Rental fees | 659,536 | 1,025,672 |
| Others | 15,803,933 | 14,191,742 |
| Total | 394,521,014 | 340,252,772 |
43. Selling and distribution expenses
Unit: RMB
| Item | H1 2024 | H1 2023 |
| Employee benefits | 110,767,294 | 99,419,222 |
| Entertainment fees | 9,996,939 | 8,645,368 |
| Business travel expenses | 6,358,650 | 6,194,559 |
| Rental fees | 5,445,122 | 5,713,495 |
| Office expenses | 1,543,766 | 1,768,037 |
| Freight expenses | 1,199,242 | 3,390,552 |
| Insurance fees | 766,925 | 2,528,186 |
| Vehicle use fees | 664,626 | 4,656,501 |
| Others | 18,261,137 | 14,540,221 |
| Total | 155,003,701 | 146,856,141 |
44. Research and development expenses
Unit: RMB
| Item | H1 2024 | H1 2023 |
| Research and development expenses | 336,673,375 | 346,264,501 |
| Total | 336,673,375 | 346,264,501 |
45. Financial expenses
Unit: RMB
| Item | H1 2024 | H1 2023 |
| Interest expenses | 115,225,970 | 113,306,203 |
| Interest income | -31,170,207 | -45,500,449 |
| Exchange gains and losses | -10,609,069 | 3,203,357 |
| Others | 2,402,731 | 1,755,534 |
| Total | 75,849,425 | 72,764,645 |
46. Other Income
Unit: RMB
| Sources of other income | H1 2024 | H1 2023 |
| Government subsidy amortization | 27,058,673 | 21,916,903 |
| Tax benefits and rebates | 61,735,134 | 2,374,350 |
| Industry support funds | 11,125,627 | 800,000 |
| Government incentive funds | 11,286,068 | 18,216,697 |
| Research grants | 2,882,320 | 1,528,784 |
| Others | 2,606,814 | 2,367,105 |
| Total | 116,694,636 | 47,203,839 |
47. Investment income
Unit: RMB
| Item | H1 2024 | H1 2023 |
| Debt restructuring income | 569,142 | |
| Interest on note discounting | -6,356,329 | -5,617,361 |
| Income from term deposits, etc. | 924,109 | 1,534,181 |
| Total | -4,863,078 | -4,083,180 |
48. Credit impairment loss
Unit: RMB
| Item | H1 2024 | H1 2023 |
| Losses on bad debts of accounts receivable | 5,159,904 | -7,621,521 |
| Losses on bad debts of notes receivable | -238,449 | |
| Losses on bad debts of other receivables | 2,459,450 | 20,297 |
| Total | 7,380,905 | -7,601,224 |
49. Asset impairment loss
Unit: RMB
| Item | H1 2024 | H1 2023 |
| Decline in the value of inventories | -41,315,915 | 24,908 |
| Total | -41,315,915 | 24,908 |
50. Income on disposal of assets
Unit: RMB
| Source of income on disposal of assets | H1 2024 | H1 2023 |
| Gain/loss on disposal of non-current assets | 4,202,074 | 53,451 |
| Total | 4,202,074 | 53,451 |
51. Non-operating revenue
Unit: RMB
| Item | H1 2024 | H1 2023 | Amount booked into current non-recurring profits and losses |
| Amounts unable to pay | 1,587,975 | 4,901,175 | 1,587,975 |
| Compensation income | 958,059 | 165,653 | 958,059 |
| Insurance claims | 3,212,700 | ||
| Others | 2,382,760 | 1,173,805 | 2,382,760 |
| Total | 4,928,794 | 9,453,333 | 4,928,794 |
52. Non-operating expenses
Unit: RMB
| Item | H1 2024 | H1 2023 | Amount booked into current non-recurring profits and losses |
| Donation | 171,400 | 300,614 | 171,400 |
| Losses due to damage or scrapping of non-current assets | 2,446,816 | 133,677 | 2,446,816 |
| Compensation | 30,225 | ||
| Others | 562,279 | 22,284 | 562,279 |
| Total | 3,180,495 | 486,800 | 3,180,495 |
53. Income tax expenses
（1）Income tax expense details
Unit: RMB
| Item | H1 2024 | H1 2023 |
| Current income tax | 144,518,913 | 84,300,053 |
| Deferred income tax | -66,291,256 | -10,205,883 |
| Total | 78,227,657 | 74,094,170 |
（2）Adjustment process of accounting profit and income tax expenses
Unit: RMB
| Item | H1 2024 |
| Total profit | 799,525,875 |
| Income tax expenses calculated at applicable tax rates | 122,777,660 |
| Costs, expenses and losses not deductible for tax purposes | 731,434 |
| Effect of deductible loss on usage of unconfirmed deferred income tax assets in the prior period | -28,776,991 |
| Effect of deductible temporary difference or deductible loss on unconfirmed deferred income tax in the current period | 939,783 |
| The impact of tax rate changes | |
| Adjustments to income taxes in prior periods | -8,301,789 |
| Effect of obtaining tax incentives | -9,142,440 |
| Income tax expenses | 78,227,657 |
54. Other comprehensive income
See Note Other comprehensive income for details
55. Notes to the cash flow statement
（1）Cash received relating to other operating activities
Unit: RMB
| Item | H1 2024 | H1 2023 |
| Security deposits received for operating purposes | 140,939,522 | |
| Government grants | 75,274,086 | 41,458,937 |
| Interest income | 31,108,379 | 45,474,892 |
| Others | 14,192,962 | 7,273,702 |
| Total | 120,575,427 | 235,147,053 |
（2）Cash paid relating to other operating activities
Unit: RMB
| Item | H1 2024 | H1 2023 |
| Security deposits | 73,884,621 | |
| Entertainment fees | 25,630,075 | 21,343,865 |
| General office expenses | 24,410,473 | 22,506,207 |
| Canteen costs | 20,422,983 | 20,838,907 |
| Maintenance fee | 19,543,932 | 17,742,387 |
| Business travel expenses | 16,895,349 | 14,512,458 |
| Insurance fees | 8,138,926 | 21,517,337 |
| Consulting advisers | 7,487,681 | 8,326,998 |
| Rental expenses | 7,218,739 | 9,824,468 |
| Vehicle use fee | 3,620,924 | 10,230,122 |
| Bank handling charges | 2,030,056 | 1,820,613 |
| Others | 62,170,291 | 57,501,774 |
| Total | 271,454,050 | 206,165,136 |
（3）Cash received relating to other investing activities
Unit: RMB
| Item | H1 2024 | H1 2023 |
| Security deposits received | 22,629,490 | |
| Amounts received that had been previously paid on behalf of others | 10,000,000 | |
| Total | 32,629,490 |
（4）Cash paid relating to other investing activities
Unit: RMB
| Item | H1 2024 | H1 2023 |
| Security deposits | 26,244,829 | |
| Total | 26,244,829 |
（5）Cash paid related to significant investment activities
Unit: RMB
| Item | H1 2024 | H1 2023 |
| Engineering project construction expenditure | 1,492,512,738 | 1,714,949,765 |
| Financial investment expenses | 162,800,000 | 20,000,000 |
| Total | 1,655,312,738 | 1,734,949,765 |
（6）Cash received relating to other financing activities
Unit: RMB
| Item | H1 2024 | H1 2023 |
| Cash received in finance leases | 458,231,000 | |
| Minority shareholder borrowings | 12,000,000 | |
| Total | 458,231,000 | 12,000,000 |
（7）Cash payments relating to other financing activities
Unit: RMB
| Item | H1 2024 | H1 2023 |
| Lease repayments | 84,615,538 | 22,948,274 |
| Security deposits | 600,000 | |
| Repayments for minority shareholder borrowings | 1,200,000 | |
| Others | 106,000 | |
| Total | 86,415,538 | 23,054,274 |
（8）Changes in various liabilities arising from financing activities
Unit: RMB
| Item | 1 January 2024 | Increase in current period | Decrease in current period | 30 June 2024 | ||
| Cash changes | Non-cash changes | Cash changes | Non-cash changes | |||
| Short-term loan | 436,853,583 | 189,010,732 | 329,980,170 | 7,533,263 | 288,350,882 | |
| Long-term borrowings (including long-term borrowings due within one year) | 7,428,521,574 | 1,415,992,654 | 570,053,193 | 8,274,461,035 | ||
| Bonds payable (including bonds payable due within one year) | ||||||
| Total | 7,865,375,157 | 1,605,003,386 | 900,033,363 | 7,533,263 | 8,562,811,917 | |
56. Supplementary information to the cash flow statement
（1）Supplementary information to the cash flow statement
Unit: RMB
| Supplementary information | H1 2024 | H1 2023 |
| 1．Reconciliation from net profit to cash flows from operating activities | ||
| Net profit | 721,298,218 | 881,897,408 |
| Add: Provision for asset impairment | 41,315,915 | -24,908 |
| Supplementary information | H1 2024 | H1 2023 |
| Provision for credit impairment | -7,380,905 | 7,601,224 |
| Depreciation of fixed assets, oil and gas assets, and productive living assets | 579,893,996 | 550,154,625 |
| Depreciation of right-of-use assets | 968,661 | 319,141 |
| Amortization of intangible assets | 73,423,420 | 43,479,477 |
| Amortization of long-term prepaid expenses | 4,176,445 | 1,878,327 |
| Losses (gains) on disposal of fixed assets, intangible assets and other long-term asset ("-" for gains) | -4,202,074 | -53,451 |
| Financial expenses ("-" for gains) | 104,616,901 | 113,306,203 |
| Investment loss ("-" for gains) | -1,493,251 | 4,083,180 |
| Decrease in deferred tax assets ("-" for increase) | -61,234,259 | -4,999,507 |
| Increase in deferred tax liabilities ("-" for decrease) | -5,056,997 | -5,206,376 |
| Decrease in inventories ("-" for increase) | -429,833,376 | -306,915,534 |
| Decrease/(increase) in operating receivables ("-" for increase) | -42,729,653 | -825,895,694 |
| Increase in operating payables ("-" for decrease) | 16,382,029 | 53,764,086 |
| Others | 3,139,075 | 5,038,984 |
| Net cash flows from operating activities | 993,284,145 | 518,427,185 |
| 2． Net changes in cash and cash equivalents: | ||
| Cash and cash equivalents at end of period | 3,477,639,345 | 2,639,260,140 |
| Less: Cash and cash equivalents at beginning of period | 3,051,261,655 | 4,594,018,251 |
| Net increase in cash and cash equivalents | 426,377,690 | -1,954,758,111 |
（2）Cash and cash equivalents composition
Unit: RMB
| Item | 30 June 2024 | 1 January 2024 |
| I. Cash and cash equivalents | 3,477,639,345 | 3,051,261,655 |
| Bank deposits that can be readily drawn on demand | 3,477,639,345 | 3,051,261,655 |
| Other cash balances that can be readily drawn on demand | ||
| II. Cash and cash equivalents at end of period | 3,477,639,345 | 3,051,261,655 |
（3）Monetary funds other than cash and cash equivalents
Unit: RMB
| Item | H1 2024 | H1 2023 | Reasons why it is not cash and cash equivalents |
| Other monetary fund | 141,639,610 | 20,057,007 | Security deposits, frozen amounts, etc. of which the use is restricted |
| Total | 141,639,610 | 20,057,007 |
57. Monetary items denominated in foreign currencies
（1）Monetary items denominated in foreign currencies
Unit: RMB
| Item | Balances denominated in foreign currencies | Exchange rates | Balances denominated in RMB |
| Cash at bank and on hand | 73,440,388 | ||
| Including：USD | 9,990,360 | 7.1268 | 71,199,296 |
| EUR | 6,618 | 7.6617 | 50,704 |
| HKD | 2,097,524 | 0.9127 | 1,914,410 |
| JPY | 6,005,101 | 0.0447 | 268,428 |
| SGD | 710 | 5.2790 | 3,750 |
| AUD | 797 | 4.7650 | 3,800 |
| Accounts receivable | 173,160,070 | ||
| Including：USD | 22,646,920 | 7.1268 | 161,400,066 |
| EUR | 834,785 | 7.6617 | 6,395,875 |
| HKD | 5,877,209 | 0.9127 | 5,364,129 |
| Accounts payable | 30,732,596 | ||
| Including：USD | 4,046,598 | 7.1268 | 28,839,292 |
| EUR | 206,887 | 7.6617 | 1,585,103 |
| GBP | 11,000 | 9.0430 | 99,473 |
| JPY | 4,669,530 | 0.0447 | 208,728 |
58. Leases
（1） The Company as the lessee
√ Applicable □ Not applicable
Variable lease payments not included in the measurement of lease liabilities
□ Applicable √ Not applicable
Lease costs for short-term leases or low-value assets that adopt a simplified accounting approach:
For January-June 2024, lease costs for the Group’s short-term leases or low-value assets that adopt a simplified accountingapproach were RMB 6,083,242.Sale-leasebacks:
For January-June 2024, the total cash outflow amount in relation to sale-leasebacks was RMB 69,192,468.
VIII. R&D SPENDING
Unit: RMB
| Item | H1 2024 | H1 2023 |
| Material | 158,306,519 | 177,053,665 |
| Labor costs | 137,105,995 | 137,509,742 |
| Fees and others | 41,260,861 | 42,678,805 |
| Total | 336,673,375 | 357,242,212 |
| Among them: expense | 336,673,375 | 346,264,501 |
| Capitalization | 10,977,711 |
IX. THE CHANGES OF CONSOLIDATION SCOPE
1. Changes in scope of consolidation due to other reasons
On 10 April 2024, the Group established Chengdu CSG New Energy Co., Ltd. As of 30 June 2024, the Group has not contributedany capital and the Group holds 100% of its equities.
X. EQUIRTY IN OTHER ENTITIES
1. Interest in subsidiaries
（1）Constitution of the Group
Unit: RMB
| Name of subsidiary | Registered capital | Major business location | Place of registration | Scope of business | Shareholding | Method of acquisition | |
| Direct | Indirect | ||||||
| Chengdu CSG | 260,000,000 | Chengdu, PRC | Chengdu, PRC | Development, production and sales of special glass | 75% | 25% | Establishment |
| Sichuan CSG Energy Conservation | 180,000,000 | Chengdu, PRC | Chengdu, PRC | Intensive processing of glass | 75% | 25% | Separation |
| Tianjin Energy Conservation | 336,000,000 | Tianjin, PRC | Tianjin, PRC | Intensive processing of glass | 75% | 25% | Establishment |
| Dongguan CSG Engineering | 240,000,000 | Dongguan, PRC | Dongguan, PRC | Intensive processing of glass | 75% | 25% | Establishment |
| Dongguan CSG Solar | 480,000,000 | Dongguan, PRC | Dongguan, PRC | Production and sales of special glass and photovoltaic glass | 75% | 25% | Establishment |
| Dongguan CSG PV-tech | 516,000,000 | Dongguan, PRC | Dongguan, PRC | Production and sales of hi-tech green battery and components | 100% | Establishment | |
| Yichang CSG Polysilicon | 1,467,980,000 | Yichang, PRC | Yichang, PRC | Production and sales of high-purity silicon materials | 75% | 25% | Establishment |
| Wujiang CSG Engineering | 320,000,000 | Wujiang, PRC | Wujiang, PRC | Intensive processing of glass | 75% | 25% | Establishment |
| Hebei CSG (note 1) | 48,066,000 | Yongqing, PRC | Yongqing, PRC | Production and sales of special glass | 75% | 25% | Establishment |
| Wujiang CSG | 565,041,798 | Wujiang, PRC | Wujiang, PRC | Production and sales of special glass | 100% | Establishment | |
| China Southern Glass (Hong Kong) Limited (note 2) | 86,440,000 | Hong Kong, PRC | Hong Kong, PRC | Investment holding | 100% | Establishment | |
| Xianning CSG | 235,000,000 | Xianning, PRC | Xianning, PRC | Production and sales of special glass and photovoltaic glass | 75% | 25% | Establishment |
| Name of subsidiary | Registered capital | Major business location | Place of registration | Scope of business | Shareholding | Method of acquisition | |
| Direct | Indirect | ||||||
| Xianning CSG Energy-Saving | 215,000,000 | Xianning, PRC | Xianning, PRC | Intensive processing of glass | 75% | 25% | Separation |
| Qingyuan CSG Energy-Saving | 1,055,000,000 | Qingyuan, PRC | Qingyuan, PRC | Production and sales of ultra-thin electronic glass | 100% | Establishment | |
| Shenzhen CSG Financial Leasing Co., Ltd. | 300,000,000 | Shenzhen, PRC | Shenzhen, PRC | Finance leasing, etc. | 75% | 25% | Establishment |
| Jiangyou CSG Mining Development Co. Ltd. | 100,000,000 | Jiangyou, PRC | Jiangyou, PRC | Production and sales of silica and its by-products | 100% | Establishment | |
| Shenzhen CSG Display: | 143,000,000 | Shenzhen, PRC | Shenzhen, PRC | Production and sales of display component products | 60.8% | Acquisition | |
| Zhaoqing Energy Saving Company | 200,000,000 | Zhaoqing PRC | Zhaoqing PRC | Intensive processing of glass | 100% | Establishment | |
| Zhaoqing Automobile Company | 200,000,000 | Zhaoqing PRC | Zhaoqing PRC | Intensive processing of glass | 100% | Establishment | |
| Anhui Energy Company | 1,750,000,000 | Fengyang, PRC | Fengyang, PRC | Production and sales of photovoltaic glass | 100% | Establishment | |
| Anhui Quartz Company | 75,000,000 | Fengyang, PRC | Fengyang, PRC | Production and sales of solar glass products | 100% | Establishment | |
| Anhui Silicon Valley Mingdu Mining Company | 360,000,000 | Fengyang, PRC | Fengyang, PRC | Mineral resources exploitation | 60% | Establishment | |
| Xi'an energy conservation company | 150,000,000 | Xi’an, PRC | Xi’an, PRC | Intensive processing of glass | 55% | 45% | Establishment |
| Qinghai New Energy | 1,350,000,000 | Delingha, PRC | Delingha, PRC | Production and sales of high purity silicon products | 100% | Establishment | |
| Guangxi New Energy Materials Company | 600,000,000 | Beihai, PRC | Beihai, PRC | Production and sales of photovoltaic glass | 75% | 25% | Establishment |
Note 1: The registered capital of Hebei CSG is in USD.Note 2: The registered capital of China Southern Glass (Hong Kong) Limited is in HKD.XI. GOVERNMENT GRANTS
1. Liabilities involving government grants
√ Applicable □ Not applicable
Unit: RMB
| Accounting item | 1 January 2024 | Increase in current period | Amount included in non-operating income in current period | Amount transferred to other income in current period | 30 June 2024 | Asset related/income related |
| Deferred income | 430,143,830 | 38,341,600 | 27,058,673 | 441,426,757 | Asset related/income related | |
| Total | 430,143,830 | 38,341,600 | 27,058,673 | 441,426,757 |
2. Government grants included in current profits and losses
√ Applicable □ Not applicable
Unit: RMB
| Accounting item | H1 2024 | H1 2023 |
| Amortization of government subsidies | 27,058,673 | 21,916,903 |
| Other government subsidies | 31,507,137 | 28,608,269 |
| Total | 58,565,810 | 50,525,172 |
XII. FINANCIAL INSTRUMENT RISK MANAGEMENTThe Group's main financial instruments include monetary funds, notes receivable, accounts receivable, receivable financing, otherreceivables, 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 risksassociated with these financial instruments and the risk management policies adopted by the Group to mitigate these risks aredescribed below. The management of the Group manages and monitors these risk exposures to ensure that the above risks arecontrolled 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 raterisk, interest rate risk, and commodity price risk).The Group's overall risk management plan addresses the unpredictability of financial markets and strives to reduce potentialadverse 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 riskacceptance levels and design corresponding internal control procedures to monitor the Group's risk levels. The Group willregularly reassess these risk management policies and related internal control systems to adapt to changes in market conditions orthe Group's operating activities. The internal audit department also regularly and irregularly checks whether the implementation ofthe 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 theGroup's risk management policies and relevant guidelines, and supervising the implementation of risk management measures. TheGroup has formulated risk management policies to identify and analyze the risks faced by the Group. These risk managementpolicies clearly define specific risks and cover many aspects such as market risk, credit risk and liquidity risk management. TheGroup regularly assesses changes in the market environment and the Group's operating activities to determine whether to updaterisk management policies and systems. The Group's risk management is carried out by relevant departments in accordance withpolicies approved by the Board of Directors. These departments identify, evaluate and avoid relevant risks through closecooperation with other business departments of the Group.The Group diversifies financial instrument risks through appropriate diversification of investments and business portfolios, andreduces risks concentrated in a single industry, specific region or specific counterparty by formulating corresponding riskmanagement policies.
（1）Credit risk
Credit risk refers to the risk that the counterparty fails to perform its contractual obligations, resulting in financial losses to theGroup.The Group manages credit risks by portfolio classification. Credit risk mainly arises from bank deposits, bills receivable, accountsreceivable, other receivables, etc.The Group's bank deposits are mainly deposited in state-owned banks and other large and medium-sized listed banks. The Groupexpects 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 controlcredit risk exposure. The Group evaluates the customer's credit qualifications and sets corresponding credit periods based on thecustomer'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 orcancel 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 toconduct credit assessments on the financial status of accounts receivable and purchases credit guarantee insurance whenappropriate.The Group's maximum exposure to credit risk is the carrying amount of each financial asset on the balance sheet. The Group doesnot provide any other guarantees that may expose the Group to credit risk. Among the Group's accounts receivable, those from thetop five customers(mainly photovoltaic glass customers) accounted for 30% of the Group's total accounts receivable (2023:
39%).These customers are all industry leaders with good credit, thus reducing the risk of accounts receivable recovery for thisgroup. Among the Group's other receivables, those from the top five companies in terms of arrears. Other receivables account for88% of the Group's total other receivables (2023: 87%).
（2）Liquidity risk
Liquidity risk refers to the risk that the Group encounters a shortage of funds when fulfilling its obligations to settle by deliveringcash or other financial assets.When managing liquidity risk, the Group maintains and monitors cash and cash equivalents that management considers sufficientto meet the Group's operating needs and reduce the impact of cash flow fluctuations. The management of the Group monitors theuse of bank borrowings and ensures compliance with borrowing agreements. At the same time, obtain commitments from majorfinancial 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 thematurity period of the undiscounted remaining contract cash flows as follows (unit: RMB):
| Item | 30 June 2024 | ||||
| Within 1 year | 1-2 years | 2-5 years | Over 5 years | Total | |
| Financial liabilities: | |||||
| Short-term borrowings | 293,776,684 | 293,776,684 | |||
| Notes payable | 2,509,626,956 | 2,509,626,956 | |||
| Accounts payable | 3,338,914,236 | 3,338,914,236 | |||
| Other payables | 1,160,609,297 | 1,160,609,297 | |||
| Non-current liabilities due within one year | 1,567,681,490 | 1,567,681,490 | |||
| Other current liabilities | 296,865,126 | 296,865,126 | |||
| Long-term borrowings | 221,738,975 | 2,586,683,966 | 3,521,083,493 | 1,084,806,033 | 7,414,312,467 |
| Lease liabilities | 1,154,300 | 3,789,641 | 9,735,337 | 14,679,278 | |
| Long-term payables | 78,423,577 | 340,888,116 | 91,646,200 | 510,957,893 | |
| Total financial liabilities and contingent liabilities | 9,389,212,764 | 2,666,261,843 | 3,865,761,250 | 1,186,187,570 | 17,107,423,427 |
At the end of last year , the financial liabilities and off-balance sheet guarantee items held by the Group were analyzed based onthe maturity period of the undiscounted remaining contract cash flows as follows (unit: RMB):
| Item | 1 January 2024 | ||||
| Within 1 year | 1-2 years | 2-5 years | Over 5 years | Total | |
| Financial liabilities: | |||||
| Short-term borrowings | 442,145,185 | 442,145,185 | |||
| Notes payable | 2,041,353,189 | 2,041,353,189 | |||
| Accounts payable | 3,341,624,602 | 3,341,624,602 | |||
| Other payables | 484,741,877 | 484,741,877 | |||
| Non-current liabilities due within one year | 1,271,501,008 | 1,271,501,008 | |||
| Other current liabilities | 454,332,686 | 454,332,686 | |||
| Long-term borrowings | 214,670,100 | 1,941,153,526 | 3,246,286,160 | 1,584,820,574 | 6,986,930,360 |
| Item | 1 January 2024 | ||||
| Within 1 year | 1-2 years | 2-5 years | Over 5 years | Total | |
| Lease liabilities | 1,128,760 | 3,705,792 | 10,300,010 | 15,134,562 | |
| Long-term payables | 42,003,985 | 46,200,178 | 88,204,163 | ||
| Total financial liabilities and contingent liabilities | 8,250,368,647 | 1,984,286,271 | 3,296,192,130 | 1,595,120,584 | 15,125,967,632 |
The amounts of financial liabilities disclosed in the table above represent undiscounted contractual cash flows and therefore maydiffer 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 dueto market price changes, including interest rate risk, exchange rate risk and other price risks.Interest Rate RiskInterest rate risk refers to the risk that the fair value or future cash flows of financial instruments will fluctuate due to changes inmarket interest rates. Interest rate risk can arise from both recognized interest-bearing financial instruments and unrecognizedfinancial 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 bondspayable. Financial liabilities with floating interest rates expose the Group to cash flow interest rate risk, while financial liabilitieswith 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 andfloating-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 doesnot adopt an interest rate hedging policy. However, management is responsible for monitoring interest rate risk and will considerhedging significant interest rate risk if necessary. An increase in interest rates will increase the cost of new interest-bearing debtand the interest expense of the Group's unpaid interest-bearing debt with floating interest rates, and will have a significant adverseimpact on the Group's financial results. The management will base on the latest market trends Adjustments are made in a timelymanner to the situation, and these adjustments may be through interest rate swap arrangements to reduce interest rate risk.The interest-bearing financial instruments held by the Group are as follows (unit: RMB):
| Item | 30 June 2024 | 1 January 2024 |
| Contracts at fixed rates | 1,075,553,150 | 1,123,875,582 |
| Contracts at floating rates | 5,675,067,058 | 5,097,773,094 |
| Total | 6,750,620,208 | 6,221,648,676 |
Exchange rate riskExchange rate risk refers to the risk that the fair value or future cash flows of financial instruments will fluctuate due to changes inforeign exchange rates. Exchange rate risk can arise from financial instruments denominated in foreign currencies other than thefunctional currency of accounting.Exchange rate risk is mainly due to the impact of the Group's financial position and cash flows on foreign exchange ratefluctuations. Except for the subsidiaries established in Hong Kong that hold assets settled in Hong Kong dollars, the proportion offoreign currency assets and liabilities held by the Group to the overall assets and liabilities is not significant. Therefore, the Groupbelieves 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 theGroup converted into RMB are listed as follows (unit: RMB ) :
| Item | Foreign currency liabilities | Foreign currency assets | ||
| 30 June 2024 | 1 January 2024 | 30 June 2024 | 1 January 2024 | |
| USD | 28,839,292 | 26,941,200 | 232,599,362 | 297,351,920 |
| HKD | 54,917 | 7,278,539 | 15,309,673 | |
| Others | 1,893,304 | 1,642,375 | 6,722,557 | 7,102,354 |
| Item | Foreign currency liabilities | Foreign currency assets | ||
| 30 June 2024 | 1 January 2024 | 30 June 2024 | 1 January 2024 | |
| Total | 30,732,596 | 28,638,492 | 246,600,458 | 319,763,947 |
The Group pays close attention to the impact of exchange rate changes on the Group's exchange rate risk. Management isresponsible for monitoring exchange rate risk and will consider hedging significant exchange rate risk if necessary.As of 30 June 2024, for the Group's various U.S. dollar financial assets and U.S. dollar financial liabilities, if the RMB appreciatesor depreciates by 10% against the U.S. dollar and other factors remain unchanged, the Group's net profit will decrease or increaseby approximately RMB 17,319,606. (31 December 2023: decrease or increase of approximately RMB 22,984,911).
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 toshareholders 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 toshareholders, 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 ofthe period, the Group's asset-liability ratio was 55% (end of the previous year: 52%).XIII. DISCLOSURE OF FAIR VALUE
1. Closing balance of assets and liabilities measured at fair value
Unit: RMB
| Item | Closing fair value | |||
| Level 1 | Level 2 | Level 3 | Total | |
| Financial assets at fair value through other comprehensive income | -- | -- | -- | -- |
| Receivables financing | 622,130,245 | 622,130,245 | ||
| Investment properties | 292,711,858 | 292,711,858 | ||
| Total | 292,711,858 | 622,130,245 | 914,842,103 | |
XIV. RELATED PARTIES AND RELATED PARTY TRANSACTIONS
1. Information of the parent company
The Company regards no entity as the parent company.
2. The subsidiaries
The general information and other related information of the subsidiaries are set out in Note “X. EQUIRTY IN OTHERENTITIES”.
3. General information of the Group’s associate
None
4. Other related parties information
| Name of Other Related Party | Relationship with the Group |
| Qianhai Life Insurance Co., Ltd | The largest shareholder of the Company |
| Shantou Chaoshang Urban Comprehensive Management Co., Ltd | Related party of the Company's largest shareholder |
| Qianhai Life Insurance (Xi'an) Hospital Co., Ltd. | Related party of the Company's largest shareholder |
| Shenzhen Baoyao Construction Engineering Co., Ltd. | Related party of the Company's largest shareholder |
| Shenzhen Hongtu Construction Co., Ltd. | Related party of the Company's largest shareholder |
| Suzhou Baoqi Logistics Co., Ltd. | Related party of the Company's largest shareholder |
| Shantou Laihua Industrial Co., Ltd. | Related party of the Company's largest shareholder |
| Shen Zhen Golden Flourish Supply Chain Limited | Related party of the Company's largest shareholder |
5. Related party transactions
（1）Purchase and sales of goods and rendering and receiving services
Table on purchase of goods/receiving of services
Unit: RMB
| Related parties | Related transaction | H1 2024 | H1 2023 |
| Qianhai Life Insurance Co., Ltd | Receive service | 3,724,810 | 3,787,542 |
| Total | 3,724,810 | 3,787,542 |
Table on sales of goods/providing of services
Unit: RMB
| Related parties | Related transaction | H1 2024 | H1 2023 |
| Qianhai Life Insurance (Xi'an) Hospital Co., Ltd. | Sales of goods | 1,446,563 | |
| Shenzhen Baoyao Construction Engineering Co., Ltd. | Sales of goods | 107,329 | |
| Shantou Chaoshang Urban Comprehensive Management Co., Ltd | Sales of goods | 478,927 | |
| Shantou Laihua Industrial Co., Ltd. | Sales of goods | 71,645 | |
| Total | 1,553,892 | 550,572 |
6. Receivables from and payables to related parties
（1）Receivables from related parties
Unit: RMB
| Item | Related parties | 30 June 2024 | 1 January 2024 | ||
| Carrying amount | Provision for bad debts | Carrying amount | Provision for bad debts | ||
| Accounts receivable | Shenzhen Hongtu Construction Co., Ltd. | 8,652,356 | 7,382,793 | 8,652,356 | 7,382,793 |
| Item | Related parties | 30 June 2024 | 1 January 2024 | ||
| Carrying amount | Provision for bad debts | Carrying amount | Provision for bad debts | ||
| Accounts receivable | Qianhai Life Insurance (Xi'an) Hospital Co., Ltd. | 192,716 | 3,854 | ||
| Accounts receivable | Shen Zhen Golden Flourish Supply Chain Limited | 22,090 | 20,986 | 22,090 | 20,986 |
| Advances to suppliers | Qianhai Life Insurance Co., Ltd | 119,625 | 4,441 | ||
| Total | 8,986,787 | 7,407,633 | 8,678,887 | 7,403,779 | |
（2）Payables to related parties
Unit: RMB
| Item | Related parties | 30 June 2024 | 1 January 2024 |
| Accounts payable | Suzhou Baoqi Logistics Co., Ltd | 308,667 | 314,667 |
| Other payables | Qianhai Life Insurance Co., Ltd | 6,646 | 386,589 |
| Contract liabilities | Other related parties | 411,875 | 504,538 |
| Total | 727,188 | 1,205,794 | |
XV. SHARE-BASED PAYMENTS
1. Overall share-based payments
None
2. Equity-settled share-based payments
None
3. Cash-settled share-based payments
None
4. Share-based payments in the current period
None
XVI. COMMITMENTS AND CONTINGENCIES
1. Significant commitments
Capital expenditures contracted for by the Group at the balance sheet date but are not yet necessary to be recognized on thebalance sheet are as follows:
Unit: RMB
| Item | 30 June 2024 | 1 January 2024 |
| Buildings, machinery and equipment | 1,673,293,474 | 3,010,778,541 |
2. Contingencies
Contingent liabilities arising from pending litigation and arbitration and their financial impact
Unit: RMB
| Plaintiff | Defendant | Cause of action | Court of acceptance | Target amount | Case progress |
| The Company (note 1) | Zeng Nan, Luo Youming, Wu Guobin, Ding Jiuru, Li Weinan , Yichang Hongtai Real Estate Co., Ltd. | Disputes over liability for harming company interests | Shenzhen Intermediate People's Court | 229,200,087 | Under second trial |
| Fengyang Wenyang Building and Decoration Materials Co., Ltd. (note 2) | Anhui CSG New Energy Materials Technology Co., Ltd. | Disputes over creditor's subrogation rights | Fengyang County People's Court | 17,349,467 | Under trial |
Note 1: The Company requested the Defendants to jointly compensate the plaintiff for the RMB 171 million principal amount ofthe subsidy funds granted by the government to the Group as well as the interest loss of RMB 58.2 million. As of the date ofdisclosure of this Report, the case is under trial. In relation to the matter of the RMB 171 million special fund for the introductionof talents, the Company filed a lawsuit against Zeng Nan et al. and Yichang Hongtai Real Estate Co., Ltd. on 15 December 2021for infringement of rights and compensation, which was formally accepted on 28 January 2022 by Shenzhen Intermediate People'sCourt. The first instance of the case was heard at Shenzhen Intermediate People's Court on 21 June 2022. On 4 June 2024, theCompany received the first instance Civil Judgment issued by Shenzhen Intermediate People's Court, which rejected all of theCompany's litigation requests. In June 2024, the Company filed an appeal to Guangdong Higher People's Court, and the case iscurrently in the process of the second instance.Note 2: The plaintiff sued Anhui New Energy for subrogation to bear the delayed payment and interest on the grounds that theconcrete from Hefei Construction Materials and Equipment Co., Ltd. was used in the civil construction project of the defendantAnhui New Energy. As of the announcement date of this report, the case is under trial. The Company has confirmed all accountspayable with relevant payment obligations.
XVII. POST-BALANCE SHEET EVENTSNone.XVIII. OTHER SIGNIFICANT EVENTS
1. Segment reporting
（1）Determination basis and accounting policy of report segment
Based on the Group's internal organizational structure, management requirements and internal reporting system, the Group'soperating business is divided into four reporting segments. These reporting segments are determined based on the financialinformation required by the company for daily internal management. The Group's management regularly evaluates the operatingresults of these reportable segments to determine the allocation of resources to them and evaluate their performance.The Group's reportable segments include:
-The Glass Division is responsible for the production and sales of float glass, photovoltaic glass products, architectural glassproducts, 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 specialultra-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 segmentwhen reporting to management. These accounting policies and measurement basis are consistent with those used when preparingfinancial statements.
（2）Financial information of reporting segments
Unit: RMB
| Item | Glass industry | Electronic glass and display device | Solar energy and other industries | Unallocated amount | Inter-segment elimination | Total |
| Revenue from external customers | 7,132,198,082 | 638,348,372 | 305,452,520 | 2,971,677 | 8,078,970,651 | |
| Inter-segment revenue | 66,507,407 | 71,490,724 | 44,181,044 | 193,370,462 | -375,549,637 | |
| Interest expenses | 76,856,192 | 4,356,994 | 2,258,875 | 31,753,909 | 115,225,970 | |
| Depreciation and amortization expenses | 470,959,748 | 110,198,227 | 68,634,265 | 8,670,282 | 658,462,522 | |
| Total profit/(loss) | 876,285,926 | -7,528,915 | -93,703,707 | 24,472,571 | 799,525,875 | |
| Total assets | 19,645,776,935 | 3,225,766,932 | 6,861,488,006 | 2,535,923,633 | 32,268,955,506 | |
| Total liabilities | 10,521,288,872 | 563,111,651 | 2,900,262,156 | 3,790,791,317 | 17,775,453,996 | |
| Increase in non-current assets | 774,245,894 | 17,990,864 | 984,668,244 | 1,054,066 | 1,777,959,068 |
XIX. NOTES TO THE KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS
1. Accounts receivable
（1）Disclosure by age
Unit: RMB
| Aging | 30 June 2024 | 1 January 2024 |
| Within 1 year (including 1 year) | 237,211,824 | 240,038,959 |
| Total | 237,211,824 | 240,038,959 |
（2） Classification by bad debt accrual method
Unit: RMB
| Category | 30 June 2024 | 1 January 2024 | ||||||||
| Carrying amount | Provision for bad debts | Book value | Carrying amount | Provision for bad debts | Book value | |||||
| Amount | Proportion | Amount | Provision proportion | Amount | Proportion | Amount | Provision proportion | |||
| Provision for bad debts on a portfolio basis | 237,211,824 | 100% | 237,211,824 | 240,038,959 | 100% | 240,038,959 | ||||
| Total | 237,211,824 | 100% | 237,211,824 | 240,038,959 | 100% | 240,038,959 | ||||
（3）Accounts receivable details of the top 5 closing balances by debtors
Unit: RMB
| Name | Accounts receivable closing balance | Percentage in total accounts receivable balance | Provision for bad debts closing balance |
| Total balances for the five largest accounts receivable | 195,525,151 | 82% | |
| Total | 195,525,151 | 82% |
2. Other receivables
Unit: RMB
| Item | 30 June 2024 | 1 January 2024 |
| Dividends receivable | 127,775,200 | 126,870,800 |
| Other receivables | 2,409,559,249 | 2,030,231,679 |
| Total | 2,537,334,449 | 2,157,102,479 |
（1）Dividends receivable
1）Disclosed by categories
Unit: RMB
| Item | 30 June 2024 | 1 January 2024 |
| Dividends receivable from subsidiaries | 127,775,200 | 126,870,800 |
| Total | 127,775,200 | 126,870,800 |
（2）Other receivables
1）Other receivables categorized by nature
Unit: RMB
| Nature of receivables | 30 June 2024 | 1 January 2024 |
| Due from related parties | 2,287,481,057 | 1,908,899,993 |
| Others | 173,426,727 | 172,750,521 |
| Total | 2,460,907,784 | 2,081,650,514 |
2） Disclosure by age
Unit: RMB
| Aging | 30 June 2024 | 1 January 2024 |
| Within 1 year (including 1 year) | 2,093,287,353 | 1,753,727,543 |
| Over 1 year | 367,620,431 | 327,922,971 |
| Total | 2,460,907,784 | 2,081,650,514 |
3） Classification by bad debt accrual method
Unit: RMB
| Category | 30 June 2024 | ||||
| Carrying amount | Provision for bad debts | Book value | |||
| Amount | Proportion | Amount | Accrual proportion | ||
| Provision for bad debts on an individual basis | 171,000,000 | 7% | 51,300,000 | 30% | 119,700,000 |
| Provision for bad debts on a portfolio basis | 2,289,907,784 | 93% | 48,535 | 2,289,859,249 | |
| Including: | |||||
| Related party combination | 2,287,481,057 | 93% | 2,287,481,057 | ||
| Unrelated party combination | 2,426,727 | 48,535 | 2% | 2,378,192 | |
| Total | 2,460,907,784 | 100% | 51,348,535 | 2% | 2,409,559,249 |
(Continued)
| Category | 1 January 2024 | ||||
| Carrying amount | Provision for bad debts | Book value | |||
| Amount | Proportion | Amount | Accrual proportion | ||
| Provision for bad debts on an individual basis | 171,000,000 | 8% | 51,300,000 | 30% | 119,700,000 |
| Provision for bad debts on a portfolio basis | 1,910,650,514 | 92% | 118,835 | 1,910,531,679 | |
| Including: | |||||
| Related party combination | 1,908,899,993 | 92% | 1,908,899,993 | ||
| Unrelated party combination | 1,750,521 | 118,835 | 7% | 1,631,686 | |
| Total | 2,081,650,514 | 100% | 51,418,835 | 2% | 2,030,231,679 |
Provision for bad debts on an individual basis:
Unit: RMB
| Item | 1 January 2024 | 30 June 2024 | ||||
| Carrying amount | Provision for bad debts | Carrying amount | Provision for bad debts | Provision proportion | Reason for provision | |
| Provision for bad debts on an individual basis, which is of a significant single amount | 171,000,000 | 51,300,000 | 171,000,000 | 51,300,000 | 30% | Under trial |
| Total | 171,000,000 | 51,300,000 | 171,000,000 | 51,300,000 | ||
Provision for bad debts on a portfolio basis:
Unit: RMB
| Item | 30 June 2024 | ||
| Carrying amount | Provision for bad debts | Provision proportion | |
| Unrelated parties | 2,426,727 | 48,535 | 2% |
| Total | 2,426,727 | 48,535 | |
Provision for bad debts accrued on the basis of a general model of expected credit losses:
Unit: RMB
| Provision for bad debt | Stage 1 | Stage 2 | Stage 3 | Total |
| Expected credit loss in the next 12 months | Expected credit loss for the whole period (no credit impairment) | Expected credit loss for the whole period (with credit impairment) | ||
| Amount on 1 January 2024 | 118,835 | 51,300,000 | 51,418,835 | |
| Carrying amount on 1 January 2024 that in this period: | ||||
| Provision for the period | 5,660 | 5,660 |
| Provision for bad debt | Stage 1 | Stage 2 | Stage 3 | Total |
| Expected credit loss in the next 12 months | Expected credit loss for the whole period (no credit impairment) | Expected credit loss for the whole period (with credit impairment) | ||
| Reverse for the period | 75,960 | 75,960 | ||
| Amount on 30 June 2024 | 48,535 | 51,300,000 | 51,348,535 |
4） Bad debt provisions accrued, recovered or reversed in the current periodBad debt provisions in the current period:
Unit: RMB
| Category | 1 January 2024 | Change in the current period | 30 June 2024 | |||
| Accrued | Recovered or reversed | Written off | Others | |||
| Bad debt provisions for other receivables | 51,418,835 | 5,660 | 75,960 | 51,348,535 | ||
| Total | 51,418,835 | 5,660 | 75,960 | 51,348,535 | ||
5）Other receivables details of the top 5 closing balances by debtors
Unit: RMB
| Name | Nature of business | 30 June 2024 | Ageing | Percentage in total other receivables balance | Provision for bad debts |
| Company A | Advance payment for other party | 542,285,536 | Within 1 year | 22% | |
| Company B | Advance payment for other party | 365,065,100 | Within 1 year | 15% | |
| Company C | Advance payment for other party | 193,858,596 | Within 1 year | 8% | |
| Company D | Advance payment for other party | 171,000,000 | Over 5 years | 7% | 51,300,000 |
| Company E | Advance payment for other party | 163,405,241 | Within 1 year | 7% | |
| Total | 1,435,614,473 | 59% | 51,300,000 |
3. Long-term equity investments
Unit: RMB
| Item | 30 June 2024 | 1 January 2024 | ||||
| Carrying amount | Impairment provision | Book value | Carrying amount | Impairment provision | Book value | |
| Investment in subsidiaries | 10,244,533,769 | 15,000,000 | 10,229,533,769 | 9,821,533,769 | 15,000,000 | 9,806,533,769 |
| Total | 10,244,533,769 | 15,000,000 | 10,229,533,769 | 9,821,533,769 | 15,000,000 | 9,806,533,769 |
（1）Investments in subsidiaries
Unit: RMB
| Investee | Opening book value | Opening impairment provision | Movement in current period | Closing book value | Closing impairment provision | |||
| Increase in investment | Decrease in investment | Impairment provision | Others | |||||
| Chengdu CSG Company | 151,397,763 | 151,397,763 | ||||||
| Sichuan Energy Saving Company | 119,256,949 | 119,256,949 | ||||||
| Tianjin Energy Saving Company | 247,833,327 | 247,833,327 | ||||||
| Dongguan Engineering Company | 222,276,243 | 222,276,243 | ||||||
| Dongguan Solar Energy Company | 355,120,247 | 355,120,247 | ||||||
| Dongguan Photovoltaic Company | 432,112,183 | 432,112,183 | ||||||
| Yichang Silicon Material Company | 909,960,170 | 909,960,170 | ||||||
| Wujiang Engineering Company | 254,401,190 | 254,401,190 | ||||||
| Hebei CSG Company | 266,189,705 | 266,189,705 | ||||||
| CSG (Hong Kong) Co., Ltd. | 87,767,304 | 87,767,304 | ||||||
| Wujiang CSG Company | 567,645,430 | 567,645,430 | ||||||
| Jiangyou CSG Mining Development Co., Ltd. | 102,415,096 | 102,415,096 | ||||||
| Xianning Float Company | 181,116,277 | 181,116,277 | ||||||
| Xianning Energy Saving Company | 165,452,035 | 165,452,035 | ||||||
| Qingyuan Energy Saving Company | 885,273,105 | 885,273,105 | ||||||
| Shenzhen CSG Financial Leasing Co., Ltd. | 133,500,000 | 133,500,000 | ||||||
| Shenzhen Display Device Company | 550,765,474 | 550,765,474 | ||||||
| Zhaoqing Energy Saving Company | 200,000,000 | 200,000,000 | ||||||
| Zhaoqing CSG Automotive Glass Co., Ltd. | 159,959,074 | 159,959,074 | ||||||
| Investee | Opening book value | Opening impairment provision | Movement in current period | Closing book value | Closing impairment provision | |||
| Increase in investment | Decrease in investment | Impairment provision | Others | |||||
| Anhui New Energy Company | 1,550,000,000 | 200,000,000 | 1,750,000,000 | |||||
| Anhui Quartz Company | 75,000,000 | 75,000,000 | ||||||
| Anhui Silicon Valley Mingdu Company | 216,000,000 | 216,000,000 | ||||||
| Xi'an Energy Saving Company | 82,500,000 | 82,500,000 | ||||||
| Guangxi New Energy Materials Company | 227,000,000 | 223,000,000 | 450,000,000 | |||||
| CSG (Suzhou) Corporate Headquarters Management Co., Ltd. | 30,000,000 | 30,000,000 | ||||||
| Shenzhen CSG Quartz Materials Industrial Co., Ltd. | 40,000,000 | 40,000,000 | ||||||
| Shenzhen CSG New Energy Industry Development Co., Ltd. | 1,350,000,000 | 1,350,000,000 | ||||||
| Others | 243,592,197 | 15,000,000 | 243,592,197 | 15,000,000 | ||||
| Total | 9,806,533,769 | 15,000,000 | 423,000,000 | 10,229,533,769 | 15,000,000 | |||
4. Operating income and operating costs
Unit: RMB
| Item | H1 2024 | H1 2023 | ||
| Revenue | Cost | Revenue | Cost | |
| Principal operation | 2,824,451 | 833,033 | ||
| Other operations | 193,179,612 | 218,992,685 | ||
| Total | 196,004,063 | 219,825,718 | ||
5. Investment income
Unit: RMB
| Item | H1 2024 | H1 2023 |
| Investment income from long-term equity investment under cost method | 655,900,646 | 1,680,533,152 |
| Others | 924,109 | 1,534,181 |
| Total | 656,824,755 | 1,682,067,333 |
XX. SUPPLEMENTARY INFORMATION
1.Statement of non-recurring gains and losses
√ Applicable □ Not applicable
Unit: RMB
| Item | Amount | Notes |
| Gains/losses from the disposal of non-current asset | 4,202,074 | |
| 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 defined standards, except government subsidies that have a continuous impact on the profit and loss of the company) | 58,517,357 | |
| In addition to the effective hedging business related to the normal operation of the company, the profit or loss of fair value changes arising from the holding of financial assets and financial liabilities by non-financial enterprises and the loss or gain arising from the disposal of financial assets and financial liabilities and available for sale financial assets | 924,109 | |
| Reversal of provision for impairment of receivables that have been individually tested for impairment | 6,819,779 | |
| Profit and loss from debt restructuring | 569,142 | |
| Other non-operating income and expenditure except for the aforementioned items | 1,748,299 | |
| Less: Impact on income tax | 11,058,108 | |
| Impact on minority shareholders’ equity (post-tax) | 1,512,282 | |
| Total | 60,210,370 | -- |
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 forCompanies Offering their Securities to the Public - Non-recurring Gains and Losses as recurring gains and losses
□ Applicable √ Not applicable
2.ROE and earnings per share
| Profit during the reporting period | Weighted average return on equity % | Earnings per share | |
| Basic earnings per share (RMB/share) | Diluted earnings per share (RMB/share) | ||
| Net profit attributable to the company’s ordinary shareholders | 5.08% | 0.24 | 0.24 |
| Net profit attributable to the company's ordinary shareholders after deducting non-recurring gains and losses | 4.67% | 0.22 | 0.22 |
Board of Directors ofCSG Holding Co., Ltd.26 August 2024