CSG HOLDING CO., LTD.
THE THIRD QUARTER REPORT 2020
Chairman of the Board:
CHEN LIN
October 2020
Section I. Important NoticeBoard 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.All directors were present at the meeting of the Board for deliberating the Third Quarter Report of2020 of the Company in person.Ms. Chen Lin, Chairman of the Board, Mr. Wang Jian, responsible person in charge of accountingand Ms. Wang Wenxin, principal of the financial department (accounting officer) confirm that theFinancial Report enclosed in the Third Quarter Report of 2020 of the Company is true, accurate andcomplete.This report is prepared both in Chinese and English. Should there be any inconsistency between theChinese and English versions, the Chinese version shall prevail.
Section II. The Basic Information of the Company
I. Main accounting data and financial indicesWhether retrospective adjustment has been carried out on financial reports of previous periods or not
□Yes √ No
| The end of the report period | The end of the previous year | Increase/decrease in comparison with the end of the previous year | ||||
| Total assets (RMB ) | 18,142,913,969 | 18,201,235,959 | -0.32% | |||
| Net assets attributable to shareholders of the Company (RMB ) | 10,164,591,669 | 9,495,588,878 | 7.05% | |||
| The report period | Increase/decrease in comparison with the same period of the previous year | From 1 January to 30 September 2020 | Increase/decrease in comparison with the same period of 2019 | |||
| Operating income (RMB) | 3,044,056,708 | 9.76% | 7,468,278,057 | -2.52% | ||
| Net profit attributable to shareholders of the listed company (RMB) | 335,353,516 | 100.85% | 726,820,239 | 33.53% | ||
| Net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses (RMB) | 313,760,171 | 130.85% | 672,404,468 | 60.15% | ||
| Net cash flow arising from operating activities (RMB) | 893,477,970 | 20.67% | 1,673,122,359 | 10.92% | ||
| Basic earnings per share (RMB/Share) | 0.11 | 83.33% | 0.24 | 33.33% | ||
| Diluted earnings per share (RMB/Share) | 0.11 | 120% | 0.24 | 41.18% | ||
| Weighted average ROE | 3.38% | 1.61% | 7.39% | 1.55% | ||
Items and amounts of extraordinary profit (gains)/loss
√ Applicable □ Not applicable
Unit: RMB
| Item | Amount from the beginning of year to the end of the report period | Note |
| Gains/losses from the disposal of non-current asset (including the write-off that accrued for impairment of assets) | -1,188,304 | |
| Governmental subsidy reckoned into current gains/losses (not including the subsidy enjoyed in quota or ration according to national standards, which are closely relevant to enterprise’s business) | 72,459,096 |
| Profits and losses from external entrusted loans | 5,546,384 | |
| Other non-operating income and expenditure except for the aforementioned items | -12,508,924 | |
| Less: Impact on income tax | 8,279,010 | |
| Impact on minority shareholders’ equity (post-tax) | 1,613,471 | |
| Total | 54,415,771 | -- |
Explain reasons for the extraordinary profit (gain)/loss defined by Q&A Announcement No.1 on Information Disclosure forCompanies Offering Their Securities to the Public --- Extraordinary Profit/loss, and the items defined as recurring profit (gain)/lossaccording to the lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for CompaniesOffering Their Securities to the Public --- Extraordinary Profit/loss
□ Applicable √ Not applicable
It did not exist that the items were defined as recurring profit (gain)/loss according to the definition or the list of extraordinary profit(gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public ---Extraordinary Profit/loss in the report period.
II. Total of shareholders at the end of the report period and particulars about shareholdingsof the top ten shareholders
1. Particulars about the total number of common shareholders and preference shareholders with votingrights recovered as well as the shareholdings of the top ten shareholders
Unit: Share
| Total number of common shareholders at the end of the report period | 144,634 | Total number of preference shareholders with voting rights recovered at end of report period (if applicable) | 0 | |||||
| Particulars about the shareholdings of the top ten shareholders | ||||||||
| Name of shareholder | Nature of shareholder | Proportion of shares held (%) | Amount of shares held | Amount of 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 | ||||
| Foresea Life Insurance Co., Ltd. – Universal Insurance Products | Domestic non state-owned legal person | 3.86% | 118,425,007 | 0 | ||||
| Zhongshan Runtian Investment Co., Ltd. | Domestic non state-owned legal person | 2.82% | 86,633,447 | 0 | Pledged | 81,000,000 | ||
| Hong Kong Securities Clearing Company Limited | Foreign legal person | 2.18% | 67,052,369 | 0 | ||||
| Foresea Life Insurance Co., Ltd. – Own Fund | Domestic non state-owned legal person | 2.11% | 64,765,161 | 0 | ||||
| Central Huijin Asset Management Ltd. | State-owned legal person | 1.89% | 57,915,488 | 0 | ||||
| China Galaxy International Securities (Hong Kong) Co., Limited | Foreign legal person | 1.35% | 41,349,778 | 0 | |||||
| China Merchants Securities (HK) Co., Limited | State-owned legal person | 1.06% | 32,534,653 | 0 | |||||
| Shenzhen International Holdings (SZ) Limited | State-owned legal person | 0.95% | 29,095,000 | 0 | |||||
| VANGUARD EMERGING MARKETS STOCK INDEX FUND | Foreign legal person | 0.62% | 19,177,013 | 0 | |||||
| Particulars about top ten shareholders with unrestricted shares held | |||||||||
| Name of shareholder | Amount of unrestricted shares held | Type of shares | |||||||
| Type | Amount | ||||||||
| Foresea Life Insurance Co., Ltd. – HailiNiannian | 466,386,874 | RMB ordinary shares | 466,386,874 | ||||||
| Foresea Life Insurance Co., Ltd. – Universal Insurance Products | 118,425,007 | RMB ordinary shares | 118,425,007 | ||||||
| Zhongshan Runtian Investment Co., Ltd. | 86,633,447 | RMB ordinary shares | 86,633,447 | ||||||
| Hong Kong Securities Clearing Company Limited | 67,052,369 | RMB ordinary shares | 67,052,369 | ||||||
| Foresea Life Insurance Co., Ltd. – Own Fund | 64,765,161 | RMB ordinary shares | 64,765,161 | ||||||
| Central Huijin Asset Management Ltd. | 57,915,488 | RMB ordinary shares | 57,915,488 | ||||||
| China Galaxy International Securities (Hong Kong) Co., Limited | 41,349,778 | Domestically listed foreign shares | 41,349,778 | ||||||
| China Merchants Securities (HK) Co., Limited | 32,534,653 | Domestically listed foreign shares | 32,534,653 | ||||||
| Shenzhen International Holdings (SZ) Limited | 29,095,000 | RMB ordinary shares | 29,095,000 | ||||||
| VANGUARD EMERGING MARKETS STOCK INDEX FUND | 19,177,013 | Domestically listed foreign shares | 19,177,013 | ||||||
| Statement on associated relationship or consistent action among the above shareholders: | 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.. Zhongshan Runtian Investment Co., Ltd. is a related legal person of Foresea Life Insurance Co., Ltd. and Chengtai Group Co., Ltd., another related legal person of Foresea Life Insurance Co., Ltd, which held 40,187,904 shares via China Galaxy International Securities (Hong Kong) Co., Limited. Except for the above-mentioned shareholders, it is unknown whether other shareholders belong to related party or have associated relationship regulated by the Management Regulation of Information Disclosure on Change of Shareholding for Listed Companies. | ||||||||
| Explanation on shareholders involving margin business (if applicable) | N/A | ||||||||
Whether the top ten shareholders or top ten shareholders with unrestricted shares carried out buy back deals in the report period
□Yes √ No
There were no buy back deals carried out by the top ten shareholders or top ten shareholders with unrestricted shares held in thereport period.
2. Total number of preference shareholders and particulars about the shareholdings of the top tenpreference shareholders
□Applicable √ Not applicable
Section III. Important eventsI. Particulars and explanations about significant changes in main accounting statements andfinancial indices
√ Applicable □ Not applicable
Unit: RMB'0,000
| Item of balance sheet | Note | 30 September 2020 | 31 December 2019 | Increased/Decreased amount | Rate |
| Notes receivable | (1) | 19,226 | 29,702 | -10,476 | -35% |
| Accounts receivable | (2) | 94,917 | 64,968 | 29,949 | 46% |
| Receivables financing | (3) | 34,654 | 25,830 | 8,824 | 34% |
| Other current assets | (4) | 13,205 | 44,800 | -31,595 | -71% |
| Investment real estate | (5) | 20,317 | - | 20,317 | 100% |
| Construction in progress | (6) | 283,464 | 190,214 | 93,250 | 49% |
| Development expenditure | (7) | 11,183 | 8,524 | 2,659 | 31% |
| Short-term loans | (8) | 84,764 | 224,097 | -139,333 | -62% |
| Advances from customers | (9) | - | 29,280 | -29,280 | -100% |
| Contractual liabilities | (10) | 31,046 | - | 31,046 | 100% |
| Tax payable | (11) | 18,210 | 11,543 | 6,667 | 58% |
| Non-current liabilities due within one year | (12) | 86,839 | 171,246 | -84,407 | -49% |
| Long-term loans | (13) | 88,886 | 132,023 | -43,137 | -33% |
| Bonds payable | (14) | 199,340 | - | 199,340 | 100% |
| Long-term accounts payable | (15) | 3,557 | 8,724 | -5,167 | -59% |
| Deferred income tax liabilities | (16) | 6,307 | 3,020 | 3,287 | 109% |
| Treasury stocks | (17) | - | 11,807 | -11,807 | -100% |
| Other comprehensive income | (18) | 16,571 | 657 | 15,914 | 2422% |
| Item of income statement | Note | From January to September 2020 | From January to September 2019 | Increased/Decreased amount | Rate |
| Credit impairment loss | (19) | 551 | 354 | 197 | 56% |
| Income from asset disposal | (20) | -119 | 12 | -131 | - |
| Other income | (21) | 7,236 | 14,344 | -7,108 | -50% |
| Non-operating expenses | (22) | 1,876 | 746 | 1,130 | 151% |
| Income tax expenses | (23) | 19,438 | 11,199 | 8,239 | 74% |
| Net amount of other comprehensive income after tax | (24) | -200 | 198 | -398 | - |
Note:
(1) The decrease in notes receivable was mainly due to changes in the collection methods of some subsidiaries.
(2) The increase in accounts receivable was mainly due to changes in collection policies of some subsidiaries.
(3) The increase in receivables financing was mainly due to the increase of bank acceptance bills received.
(4) The decrease in other current assets was mainly due to the recovery of entrusted loans.
(5) The increase in investment real estate was mainly due to the conversion of self use property into investment real estate by somesubsidiaries.
(6) The increase of construction in progress was mainly due to the transfer of fixed assets into construction in progress and theincrease of project investment.
(7) The increase of development expenditure was mainly due to the increase of R & D investment.
(8) The decrease in short-term loans was mainly due to the repayment of part of the loans.
(9) The decrease in advances from customers was mainly due to the reclassification of advances from customers to contractualliabilities.
(10) The increase in contractual liabilities was mainly due to the reclassification of advances from customers to contractual liabilities.
(11) The increase in tax payable was mainly due to the increase in profits.
(12) The decrease in non-current liabilities due within one year was mainly due to the repayment of medium-term notes.
(13) The decrease in long-term loans was mainly due to the reclassification of medium-term notes to non-current liabilities duewithin one year.
(14) The increase in bonds payable was mainly due to the issuance of new corporate bonds.
(15) The decrease in long-term accounts payable was mainly due to the repayment of financing lease payments.
(16) The increase in deferred income tax liabilities was mainly due to the conversion of self use property into investment real estateby some subsidiaries.
(17) The decrease in treasury stocks was mainly due to the repurchase of restricted stocks.
(18) The increase in other comprehensive income was mainly due to the conversion of self use property into investment real estate bysome subsidiaries.
(19) The increase of credit impairment loss was mainly due to the increase of accounts receivable of some subsidiaries.
(20) The decrease in income from asset disposal was mainly due to the disposal of assets.
(21) The decrease in other income was mainly due to the decrease in the amortization amount of government subsidies.
(22) The increase in non-operating expenses was mainly due to the increase in donation expenditure.
(23) The increase of income tax expenses was mainly due to the increase of total profits.
(24) The decrease in net amount of other comprehensive income after tax was mainly due to changes in the translation differences inforeign currency statements.
II. The progress of material events and the impact as well as the analysis of solutions
√ Applicable □ Not applicable
1. Ultra-short-term financing bills
On May 14, 2018, the Company’s 2017 Annual Shareholders’ Meeting deliberated and approved the resolution on the application forregistration and issuance of ultra-short-term financing bills. It agreed that the Company should register and issue ultra-short-termfinancing bills with a registered amount not exceeding RMB 4 billion yuan (the limit is not subject to the limit of 40% of net assets).With the period of validity of the quota not longer than two years, such ultra-short-term financing bills will be issued by installmentsin accordance with the actual capital needs of the Company and the situation of inter-bank market funds. On September 17, 2018, theChinese Association of Interbank Market Traders held its 63rd registration meeting of 2018, and decided to approve the registrationof ultra-short-term financing bills with a total amount of 1.5 billion yuan and a validity period of two years. The ultra-short-termfinancing bills were underwritten jointly by Minsheng Bank of China Limited and Industrial Bank Co., Ltd, which could be issued byinstallments within the validity period of registration. On February 21, 2020, the Company issued ultra-short-term financing billswith a total amount of 300 million yuan and a term of 270 days in the first phase of 2020, with an interest rate of 4% and a paymentdate of November 21, 2020.On June 15, 2020, the Third Extraordinary Shareholders’ General Meeting 2020 of the Company deliberated and approved theproposal on application for registration and issuance of ultra-short-term financing bills and medium-term notes, which agreed that theCompany should register and issue ultra-short-term financing bills with a registered amount not exceeding 1.5 billion yuan (the limitis not subject to the limit of 40% of net assets).With the period of validity of the quota not longer than two years, suchultra-short-term financing bills will be issued by installments in accordance with the actual capital needs of the Company and thesituation of inter-bank market funds.On September 4, 2020, the Chinese Association of Interbank Market Traders held its 102nd registration meeting of 2020, and decidedto approve the registration of ultra-short-term financing bills with a total amount of 1.5 billion yuan and a validity period of two years.The ultra-short-term financing bills are underwritten jointly by Bank of China Limited and Hua Xia Bank Co., Limited, and can beissued by installments within the validity period of registration.
2. Medium-term notes
On 10 December 2014, the First Extraordinary Shareholders’ General Meeting 2014 of CSG Holding Co., Ltd deliberated andapproved the proposal of application for registration and issuance of medium-term notes with total amount of RMB 1.2 billion atmost. On 21 May 2015, National Association of Financial Market Institutional Investors (NAFMII) held the 32nd registrationmeeting of 2015, in which NAFMII decided to accept the registration of the Company’s medium-term notes, amounting to RMB 1.2billion and valid for two years. China Merchants Bank Co., Ltd. and Shanghai Pudong Development Bank Co., Ltd. were joint leadunderwriters of these medium term notes which could be issued by stages within period of validity of the registration. On July 14,2015, the Company issued the first batch of medium-term notes with total amount of RMB 1.2 billion and valid term of 5 years at theissuance rate of 4.94%, which will be redeemed on 14 July 2020.On April 15, 2016, the Company’s 2015 Annual Shareholders’ Meeting deliberated and approved the proposal of application forregistration and issuance of medium-term notes with total amount of RMB 0.8 billion, which could be issued by stages within periodof validity of the registration according to the Company’s actual demands for funds and the status of inter-bank funds. On 2 March2018, National Association of Financial Market Institutional Investors (NAFMII) held the 14th registration meeting of 2018, inwhich NAFMII decided to accept the registration of the Company’s medium-term notes, amounting to RMB 0.8 billion and valid fortwo years. Shanghai Pudong Development Bank Co., Ltd. and China CITIC Bank Corporation Limited were joint lead underwritersof these medium-term notes which could be issued by stages within period of validity of the registration. On May 4, 2018, theCompany issued the first batch of medium-term notes with a total amount of RMB 0.8 billion and a term of three years. The issuerate was 7%, and the redemption date was May 4, 2021.
On June 15, 2020, the Third Extraordinary Shareholders’ General Meeting 2020 of CSG deliberated and approved the proposal onapplication for registration and issuance of ultra-short-term financing bills and medium-term notes, which agreed that the Companyshould register and issue medium-term notes with a registered amount not exceeding 1.5 billion yuan (the limit is not subject to thelimit of 40% of net assets).With the period of validity of the quota not longer than two years, such medium-term notes will be issuedby installments in accordance with the actual capital needs of the Company and the situation of inter-bank market funds.On September 4, 2020, the Chinese Association of Interbank Market Traders held its 102nd registration meeting in 2020, and decidedto approve the registration of medium-term notes with a total amount of 1.5 billion yuan and a validity period of two years. Themedium-term notes are underwritten jointly by Bank of China Limited, Hua Xia Bank Co., Limited and Guangdong Shunde RuralCommercial Bank Co., Ltd, and can be issued by installments within the validity period of registration.For details, please refer to www.chinabond.com.cn and www.chinamoney.com.cn.
3. Public issuance of corporate bonds
On March 2, 2017, the 2nd Extraordinary General Meeting of Shareholders in 2017 deliberated and approved “the Proposal on thePublic Issuance of Corporate Bonds for Qualified Investors". On February 27, 2019, the First Extraordinary General Meeting ofShareholders in 2019 deliberated and approved “the Proposal on Extending the Validity Period of the Shareholders' Meeting for thePublic Offering of Corporate Bonds to Qualified Investors” agreed to issue corporate bonds with a total issue of no more than RMB 2billion and a term of no more than 10 years.On July 22, 2019, the Company received the “Approval of Approving CSG Holding Co., Ltd. to Issue Corporate Bonds to QualifiedInvestors” issued by China Securities Regulatory Commission (ZJXK [2019] No. 1140). On March 24, 2020 and March 25, 2020, theCompany issued the first batch of corporate bonds with total amount of RMB 2 billion and valid term of 3 years at the issuance rateof 6%, which will be redeemed on March 25, 2023..On March 12, 2020, the First Extraordinary General Meeting of Shareholders in 2020 deliberated and approved “the Proposal on thePublic Issuance of Corporate Bonds for Qualified Investors", agreed to issue corporate bonds with a total issue of no more than RMB
1.8 billion and a term of no more than 10 years.
On April 22, 2020, the Company received the “Approval of Approving CSG Holding Co., Ltd. to Issue Corporate Bonds to QualifiedInvestors” issued by China Securities Regulatory Commission (ZJXK[2020] No. 784).
4. Non-public issuance of A shares
The interim meeting of the 8th board of directors of the Company held on March 5, 2020 deliberated and approved the relatedproposals of non-public issuance of A shares, and agreed the Company to issue A shares privately. The proposals were deliberatedand approved by the 2nd Extraordinary General Meeting of Shareholders of 2020 which held on April 16, 2020. In May 2020, theCompany received the first feedback notice on the examination of administrative licensing projects of China Securities RegulatoryCommission (No. 200819) issued by the China Securities Regulatory Commission, and published “Announcement on Reply to theFeedback of Application Documents For Non-public Offering of A shares” and “Announcement on the Revised Reply to theFeedback of Application Documents For Non-public Offering of A shares” on June 8, 2020 and June 29, 2020 respectively. On June5, 2020, the Company held an interim meeting of the 9th board of directors, deliberated and approved the relevant proposals onadjusting the Company's non-public issuance of A shares. On July 6, 2020, the Issuance Audit Committee of China SecuritiesRegulatory Commission reviewed the Company's application for non-public issuance of A shares. According to the audit results, theCompany's application for non-public issuance of A shares was approved. On July 22, 2020, the Company received the “Reply on theApproval of Non-public Issuance of Shares of CSG” (ZJXK [2020] No. 1491) issued by China Securities Regulatory Commission.
For details, please refer to the related content disclosed by the Company on Juchao website (www.cninfo.com.cn).
Implementation progress of share buyback
□Applicable √ Not applicable
Implementation progress of share buyback reduction through centralized bidding
□Applicable √ Not applicable
III. Commitments made by the actual controller, the shareholders, the related parties, thepurchasers and the Company which failed to be fulfilled in time during the report period
□ Applicable √ Not applicable
There were no commitments made by the actual controller, the shareholders, the related parties, the purchasers or the Companywhich failed to be fulfilled in time during the report period.IV. Financial assets investment
1. Securities investment
□ Applicable √ Not applicable
The Company had no securities investment in the report period.
2. Derivative investment
□ Applicable √ Not applicable
The Company had no derivative investment in the report period.V. Progress of projects invested by raised funds
□ Applicable √ Not applicable
VI. Prediction of business performance of 2020Alert of loss or significant change in accumulative net profit from the beginning of year to the end of the next report period orcompared with the same period of last year, and statement of causations.
□ Applicable √ Not applicable
VII. Major contracts in daily operations
√ Applicable □ Not applicable
| Name of company signing the contract | Name of the other party signing the contract | Subject matter | Total contract amount | Progress of contract performance | Amount of sales revenue recognized in the current period and accumulated | Collection of accounts receivable |
| Wujiang CSG Glass Co., Ltd., Dongguan CSG Solar Glass Co., Ltd. | LONGi Solar Technology Ltd., Zhejiang LONGi Solar Technology Ltd., Taizhou LONGi Solar Technology Ltd., Yinchuan LONGi Solar Technology Ltd., Chuzhou LONGi Solar Technology Ltd., Datong LONGi Solar Technology 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., Xi'an LONGi Green Building Technology Ltd. | Photovoltaic glass | RMB 6,500 million (tax included) | In progress | The recognized income was RMB 25.2 million in this period, and the accumulated recognized income was RMB 25.2 million. | RMB 3.3 thousand |
Significant difference between major contract progress and contract agreement, which affects more than 30% of the contract amount
□ Applicable √ Not applicable
VIII. Entrusted Financing
□ Applicable √ Not applicable
The Company had no entrusted financing in the report period.
IX. Illegal external guarantee
□ Applicable √ Not applicable
The Company had no illegal external guarantee in the report period.X. Particulars about non-operating fund of listed company which is occupied by controllingshareholder and its affiliated enterprises
□ Applicable √ Not applicable
In the report period, it did not exist that non-operating fund of listed company was occupied by controlling shareholder or itsaffiliated enterprises.
XI. Reception of research, communication and interview in the report period
□ Applicable √ Not applicable
The Company had no reception of research, communication or interview in the report period.
Section IV. Financial Report
(I) Financial Statements
1. Consolidated Balance Sheet
Prepared by CSG Holding Co., Ltd.
September 30, 2020
Unit: RMB
| Item | 30 September 2020 | 31 December 2019 | |
| Current asset: | |||
| Monetary capital | 1,790,884,942 | 1,986,980,418 | |
| Notes receivable | 192,264,472 | 297,023,380 | |
| Accounts receivable | 949,169,424 | 649,681,177 | |
| Receivables financing | 346,535,185 | 258,296,826 | |
| Prepayments | 94,864,233 | 78,196,027 | |
| Other receivables | 204,184,858 | 202,854,864 | |
| Accounts receivable | 911,574,513 | 812,321,690 | |
| Other current assets | 132,053,775 | 447,995,931 | |
| Total current assets | 4,621,531,402 | 4,733,350,313 | |
| Non-current assets: | |||
| Investment real estate | 203,173,300 | ||
| Fixed assets | 8,634,472,069 | 9,783,037,301 | |
| Construction in progress | 2,834,643,039 | 1,902,140,035 | |
| Intangible assets | 1,090,142,676 | 1,044,826,287 | |
| Development expenditure | 111,833,207 | 85,240,356 | |
| Goodwill | 315,097,756 | 315,097,756 | |
| Long-term prepaid expenses | 10,763,579 | 11,351,431 | |
| Deferred tax assets | 187,622,479 | 205,792,587 | |
| Other non-current assets | 133,634,462 | 120,399,893 | |
| Total non-current assets | 13,521,382,567 | 13,467,885,646 | |
| Total assets | 18,142,913,969 | 18,201,235,959 | |
| Current liabilities: | |||
| Short-term loan | 847,643,152 | 2,240,969,137 | |
| Notes payable | 198,287,911 | 232,063,968 |
| Accounts payable | 1,169,716,782 | 1,100,531,779 | |
| Advance payment | 292,803,811 | ||
| Contractual liabilities | 310,464,023 | ||
| Payroll payable | 266,211,949 | 337,866,246 | |
| Taxes payable | 182,095,028 | 115,425,044 | |
| Other payables | 259,716,623 | 351,374,775 | |
| Including: interest payable | 94,428,777 | 73,251,086 | |
| Dividend payable | 2,985,563 | ||
| Non-current liabilities due within one year | 868,385,705 | 1,712,456,928 | |
| Other current liabilities | 300,000 | 300,000 | |
| Total current liabilities | 4,102,821,173 | 6,383,791,688 | |
| Non-current liabilities: | |||
| Long term borrowing | 888,858,848 | 1,320,225,000 | |
| Bonds payable | 1,993,402,806 | ||
| Long-term payables | 35,570,260 | 87,240,529 | |
| Deferred income | 502,117,392 | 513,925,557 | |
| Deferred income tax liabilities | 63,068,418 | 30,197,657 | |
| Total non-current liabilities | 3,483,017,724 | 1,951,588,743 | |
| Total Liabilities | 7,585,838,897 | 8,335,380,431 | |
| Owners' equity: | |||
| Share capital | 3,070,692,107 | 3,106,915,005 | |
| Capital reserve | 596,997,085 | 683,219,358 | |
| Less: Treasury shares | 118,066,397 | ||
| Other comprehensive income | 165,713,965 | 6,565,864 | |
| Special reserves | 10,479,031 | 11,102,921 | |
| Surplus reserve | 946,251,286 | 946,251,286 | |
| Undistributed profit | 5,374,458,195 | 4,859,600,841 | |
| Total owner's equity attributable to the parent company | 10,164,591,669 | 9,495,588,878 | |
| Minority shareholders' equity | 392,483,403 | 370,266,650 | |
| Total owner's equity | 10,557,075,072 | 9,865,855,528 | |
| Total Liabilities and Owner's Equity | 18,142,913,969 | 18,201,235,959 |
Legal representative: Chen Lin Principal in charge of accounting: Wang Jian Head of accounting department: Wang Wenxin
2. Balance Sheet of the Parent Company
Unit: RMB
| Item | 30 September 2020 | 31 December 2019 |
| Current asset: | ||
| Monetary capital | 1,360,543,752 | 1,560,798,731 |
| Prepayments | 3,521,429 | 1,799,222 |
| Other receivables | 3,447,912,204 | 3,179,500,967 |
| Other current assets | 300,000,000 | |
| Total current assets | 4,811,977,385 | 5,042,098,920 |
| Non-current assets: | ||
| Long-term receivables | 1,200,000,000 | |
| Long-term equity investment | 5,723,633,901 | 5,079,465,574 |
| Fixed assets | 19,617,142 | 19,550,442 |
| Intangible assets | 179,060 | 370,484 |
| Other non-current assets | 4,715,943 | 1,407,535 |
| Total non-current assets | 5,748,146,046 | 6,300,794,035 |
| Total assets | 10,560,123,431 | 11,342,892,955 |
| Current liabilities: | ||
| Short-term loan | 400,000,000 | 1,687,000,000 |
| Notes payable | 170,000,000 | |
| Accounts payable | 289,915 | 236,346 |
| Payroll payable | 32,912,687 | 53,040,982 |
| Taxes payable | 1,159,929 | 2,901,358 |
| Other payables | 854,760,528 | 1,643,156,452 |
| Including: interest payable | 93,627,324 | 41,186,139 |
| Dividend payable | 2,985,563 | |
| Non-current liabilities due within one year | 800,000,000 | 1,200,000,000 |
| Total current liabilities | 2,089,123,059 | 4,756,335,138 |
| Non-current liabilities: | ||
| Long term borrowing | 700,000,000 | 1,130,000,000 |
| Bonds payable | 1,993,402,806 | |
| Deferred income | 180,879,331 | 182,386,537 |
| Total non-current liabilities | 2,874,282,137 | 1,312,386,537 |
| Total Liabilities | 4,963,405,196 | 6,068,721,675 |
| Owners' equity: | ||
| Share capital | 3,070,692,107 | 3,106,915,005 |
| Capital reserve | 741,824,399 | 828,046,672 |
| Less: Treasury shares | 118,066,397 | |
| Surplus reserve | 960,796,646 | 960,796,646 |
| Undistributed profit | 823,405,083 | 496,479,354 |
| Total owner's equity | 5,596,718,235 | 5,274,171,280 |
| Total Liabilities and Owner's Equity | 10,560,123,431 | 11,342,892,955 |
3. Consolidated Income Statement
Unit: RMB
| Item | Balance of this period | Balance of last period |
| I. Total operating income | 3,044,056,708 | 2,773,417,909 |
| Including: operating income | 3,044,056,708 | 2,773,417,909 |
| II. Total operating costs | 2,508,325,591 | 2,464,522,217 |
| Including: Operating costs | 2,042,136,067 | 2,029,994,395 |
| Taxes and surcharges | 34,327,373 | 29,661,141 |
| sales expense | 102,794,811 | 93,556,963 |
| Management costs | 156,137,452 | 149,384,270 |
| R&D expenses | 120,358,075 | 89,453,795 |
| Financial expenses | 52,571,813 | 72,471,653 |
| Including: interest expense | 65,749,471 | 77,460,347 |
| Interest income | 11,987,768 | 7,162,227 |
| Plus: other income | 24,349,770 | 35,689,521 |
| Credit impairment loss (“-“ for loss) | -2,546,184 | 223,834 |
| Asset impairment loss (“-“ for loss) | -102,167,808 | -135,326,316 |
| Asset disposal income (“-“ for loss) | -846,299 | -252,568 |
| III. Operating profit (“-“ for loss) | 454,520,596 | 209,230,163 |
| Plus: non-operating income | 4,127,957 | 2,790,510 |
| Less: non-operating expenses | 1,219,459 | 1,162,203 |
| IV. Gross profit (“-“ for loss) | 457,429,094 | 210,858,470 |
| Less: Income tax expenses | 110,269,067 | 35,530,123 |
| V. Net profit (“-“ for net loss) | 347,160,027 | 175,328,347 |
| (I) Classification by business continuity |
| 1. Net profit from continuing operations (“-“ for net loss) | 347,160,027 | 175,328,347 |
| (II) )Classification by ownership | ||
| 1. Net profit attributable to the owners of parent company | 335,353,516 | 166,970,717 |
| 2. Minor shareholders’ equity | 11,806,511 | 8,357,630 |
| VI. Net amount of other gains after tax | -3,370,468 | 1,699,294 |
| Net amount of other gains after tax attributable to owners of parent company | -3,370,468 | 1,699,294 |
| (II)Other comprehensive income that will be reclassified into profit or loss | -3,370,468 | 1,699,294 |
| 1. Foreign currency financial statement translation difference | -3,370,468 | 1,699,294 |
| VII. Total of misc. incomes | 343,789,559 | 177,027,641 |
| Total of misc. incomes attributable to the owners of the parent company | 331,983,048 | 168,670,011 |
| Total misc gains attributable to the minor shareholders | 11,806,511 | 8,357,630 |
| VIII. Earnings per share: | ||
| (I) Basic earnings per share | 0.11 | 0.06 |
| (II) Diluted earnings per share | 0.11 | 0.05 |
Legal representative: Chen Lin Principal in charge of accounting: Wang Jian Head of accounting department: Wang Wenxin
4. Income Statement of the Parent Company
Unit: RMB
| Item | Balance of this period | Balance of last period |
| I. Operating income | 19,389,378 | 19,599,133 |
| Less: Operating costs | ||
| Taxes and surcharges | 90,606 | 33,330 |
| sales expense | ||
| Management costs | 31,985,361 | 38,951,830 |
| R&D expenses | 29,555 | 410,606 |
| Financial expenses | 48,122,951 | 32,656,871 |
| Including: interest expense | 58,686,415 | 39,315,340 |
| Interest income | 11,075,208 | 6,337,011 |
| Plus: other income | 1,772,491 | 2,146,610 |
| Credit impairment loss (“-“ for loss) | -7,395 | -44,670 |
| Asset disposal income (“-“ for loss) | 4,373 | 502,000 |
| II. Operating profit (“-“ for loss) | -59,069,626 | -49,849,564 |
| Plus: non-operating income | ||
| Less: non-operating expenses | 896,720 | 1,030,000 |
| III. Gross profit (“-“ for loss) | -59,966,346 | -50,879,564 |
| Less: Income tax expenses | ||
| IV.Net profit (“-“ for net loss) | -59,966,346 | -50,879,564 |
| (I) Net profit from continuing operations (“-“ for net loss) | -59,966,346 | -50,879,564 |
| V. Total of misc. incomes | -59,966,346 | -50,879,564 |
| VI. Earnings per share: |
5. Consolidated income statement for Jan.-Sept. 2020
Unit: RMB
| Item | Balance of this period | Balance of last period |
| I. Total revenue | 7,468,278,057 | 7,661,655,487 |
| Including: Business income | 7,468,278,057 | 7,661,655,487 |
| II. Total business cost | 6,476,096,799 | 6,991,295,788 |
| Including: Business cost | 5,201,703,098 | 5,701,371,220 |
| Tax and surcharges | 86,665,765 | 86,349,138 |
| Sales expense | 264,434,345 | 266,060,362 |
| Administrative expense | 473,556,859 | 442,246,625 |
| R&D expenses | 265,421,722 | 263,729,931 |
| Financial expenses | 184,315,010 | 231,538,512 |
| Including: Interest expense | 217,928,435 | 248,491,952 |
| Interest income | 36,919,131 | 22,085,602 |
| Plus: other income | 72,359,096 | 143,444,934 |
| Credit impairment loss (“-“ for loss) | -5,508,104 | -3,541,836 |
| Asset impairment loss (“-“ for loss) | -102,013,755 | -135,326,316 |
| Asset disposal income (“-“ for loss) | -1,188,304 | 118,401 |
| III. Operating profit (“-“ for loss) | 955,830,191 | 675,054,882 |
| Plus: non-operating income | 6,346,088 | 6,456,825 |
| Less: non-operating expenses | 18,755,012 | 7,455,430 |
| IV. Gross profit (“-“ for loss) | 943,421,267 | 674,056,277 |
| Less: Income tax expenses | 194,384,275 | 111,988,863 |
| V. Net profit (“-“ for net loss) | 749,036,992 | 562,067,414 |
| (I) Classification by business continuity | ||
| 1. Net profit from continuing operations (“-“ for net loss) | 749,036,992 | 562,067,414 |
| (II) Classification by ownership | ||
| 1. Net profit attributable to the owners of parent company | 726,820,239 | 544,313,118 |
| 2. Minor shareholders’ equity | 22,216,753 | 17,754,296 |
| VI. Net amount of other gains after tax | -2,003,696 | 1,979,455 |
| Net amount of other gains after tax attributable to owners of parent company | -2,003,696 | 1,979,455 |
| (I)Other comprehensive income that will be reclassified into profit or loss | -2,003,696 | 1,979,455 |
| 1. Foreign currency financial statement translation difference | -2,003,696 | 1,979,455 |
| VII. Total of comprehensive income | 747,033,296 | 564,046,869 |
| Total of misc. incomes attributable to the owners of the parent company | 724,816,543 | 546,292,573 |
| Total misc gains attributable to the minor shareholders | 22,216,753 | 17,754,296 |
| VIII. Earnings per share: | ||
| (I) Basic earnings per share | 0.24 | 0.18 |
| (II) Diluted earnings per share | 0.24 | 0.17 |
Legal representative: Chen Lin Principal in charge of accounting: Wang Jian Head of accounting department: Wang Wenxin
6. Income statement of the Parent Company for Jan.-Sept. 2020
Unit: RMB
| Item | Balance of this period | Balance of last period |
| I. Total revenue | 56,874,132 | 57,755,818 |
| Less: Operating costs | ||
| Tax and surcharges | 1,112,176 | 518,198 |
| Sales expense | ||
| Administrative expense | 91,516,106 | 102,583,448 |
| R&D expenses | 38,805 | 766,444 |
| Financial expenses | 127,626,312 | 97,201,706 |
| Including: Interest expense | 159,143,918 | 113,702,087 |
| Interest income | 33,758,257 | 19,075,093 |
| Plus: other income | 3,727,712 | 3,612,857 |
| Investment income(“-“ for loss) | 703,591,508 | 390,105,325 |
| Credit impairment loss (“-“ for loss) | -423 | 49,644 |
| Asset disposal income (“-“ for loss) | 5,354 | 502,000 |
| II. Operating profit (“-“ for loss) | 543,904,884 | 250,955,848 |
| Plus: non-operating income | 2,403,225 | |
| Less: non-operating expenses | 5,016,270 | 4,889,460 |
| III. Gross profit (“-“ for loss) | 538,888,614 | 248,469,613 |
| Less: Income tax expenses | ||
| VI. Net profit (“-“ for net loss) | 538,888,614 | 248,469,613 |
| (I) Net profit from continuing operations (“-“ for net loss) | 538,888,614 | 248,469,613 |
| V. Total of comprehensive income | 538,888,614 | 248,469,613 |
| VI. Earnings per share: |
7. Consolidated Cash Flow Statement for Jan.-Sept. 2020
Unit: RMB
| Item | Balance of this period | Balance of last period |
| I. Net cash flow from business operation | ||
| Cash received from sales of products and providing of services | 7,925,278,113 | 8,428,098,411 |
| Tax returned | 39,215,039 | 18,305,669 |
| Other cash received from business operation | 127,134,715 | 102,269,234 |
| Sub-total of cash inflow from business activities | 8,091,627,867 | 8,548,673,314 |
| Cash paid for purchasing of merchandise and services | 4,434,760,362 | 5,090,478,028 |
| Cash paid to staffs or paid for staffs | 1,032,873,072 | 999,968,278 |
| Taxes paid | 507,631,010 | 477,640,490 |
| Other cash paid for business activities | 443,241,064 | 472,196,718 |
| Sub-total of cash outflow from business activities | 6,418,505,508 | 7,040,283,514 |
| Net cash flow generated by business operation | 1,673,122,359 | 1,508,389,800 |
| II. Cash flow generated by investing | ||
| Net cash retrieved from disposal of fixed assets, intangible assets, and other long-term assets | 1,079,253 | 514,875 |
| Other investment-related cash received | 378,880,449 | 36,440,563 |
| Sub-total of cash inflow due to investment activities | 379,959,702 | 36,955,438 |
| Cash paid for construction of fixed assets, intangible assets and other long-term assets | 759,625,919 | 459,047,736 |
| Other cash paid for investment activities | 61,491,512 | 53,341,928 |
| Sub-total of cash outflow due to investment activities | 821,117,431 | 512,389,664 |
| Net cash flow generated by investment | -441,157,729 | -475,434,226 |
| III. Cash flow generated by financing | ||
| Cash received as loans | 2,135,739,841 | 2,525,743,740 |
| Cash received from bond issuance | 1,991,680,000 | |
| Other financing-related cash received | 3,819,801 | 500,000,000 |
| Subtotal of cash inflow from financing activities | 4,131,239,642 | 3,025,743,740 |
| Cash to repay debts | 4,483,618,135 | 2,600,659,040 |
| Cash paid as dividend, profit, or interests | 419,266,696 | 425,509,363 |
| Other cash paid for financing activities | 503,297,544 | 1,546,884,782 |
| Subtotal of cash outflow due to financing activities | 5,406,182,375 | 4,573,053,185 |
| Net cash flow generated by financing | -1,274,942,733 | -1,547,309,445 |
| IV. Influence of exchange rate alternation on cash and cash equivalents | -1,289,658 | 1,571,638 |
| V. Net increase of cash and cash equivalents | -44,267,761 | -512,782,233 |
| Plus: Balance of cash and cash equivalents at the beginning of term | 1,831,835,030 | 2,225,126,913 |
| VI. Balance of cash and cash equivalents at the end of term | 1,787,567,269 | 1,712,344,680 |
8. Cash Flow Statement of the Parent Company for Jan.-Sept. 2020
Unit: RMB
| Item | Balance of this period | Balance of last period |
| I. Net cash flow from business operation | ||
| Other cash received from business operation | 45,157,432 | 35,177,783 |
| Sub-total of cash inflow from business activities | 45,157,432 | 35,177,783 |
| Cash paid to staffs or paid for staffs | 95,662,566 | 88,784,201 |
| Taxes paid | 7,837,267 | 3,219,099 |
| Other cash paid for business activities | 20,850,979 | 28,928,195 |
| Sub-total of cash outflow from business activities | 124,350,812 | 120,931,495 |
| Net cash flow generated by business operation | -79,193,380 | -85,753,712 |
| II. Cash flow generated by investing | ||
| Cash received from investment income | 703,591,508 | |
| Net cash retrieved from disposal of fixed assets, intangible assets, and other long-term assets | 1,000 | 2,000 |
| Cash received in connection with other investment activities | 300,000,000 | |
| Sub-total of cash inflow due to investment activities | 1,003,592,508 | 2,000 |
| Cash paid for construction of fixed assets, intangible assets and other long-term assets | 6,524,571 | 4,877,721 |
| Cash paid as investment | 644,168,327 | 66,000,000 |
| Sub-total of cash outflow due to investment activities | 650,692,898 | 70,877,721 |
| Net cash flow generated by investment | 352,899,610 | -70,875,721 |
| III. Cash flow generated by financing | ||
| Cash received from borrowing | 1,532,999,801 | 2,024,500,000 |
| Cash received from bond issuance | 1,991,680,000 | |
| Other financing-related cash received | 122,140,739 | |
| Subtotal of cash inflow from financing activities | 3,646,820,540 | 2,024,500,000 |
| Cash to repay debts | 3,649,999,801 | 1,787,500,000 |
| Cash paid as dividend, profit, or interests | 320,399,318 | 207,984,342 |
| Other cash paid for financing activities | 550,998,441 | |
| Subtotal of cash outflow due to financing activities | 3,970,399,119 | 2,546,482,783 |
| Net cash flow generated by financing | -323,578,579 | -521,982,783 |
| IV. Influence of exchange rate alternation on cash and cash equivalents | -25,935 | 35,235 |
| V. Net increase of cash and cash equivalents | -49,898,284 | -678,576,981 |
| Plus: Balance of cash and cash equivalents at the beginning of term | 1,407,215,863 | 1,699,514,334 |
| VI. Balance of cash and cash equivalents at the end of term | 1,357,317,579 | 1,020,937,353 |
II. Note to the Adjustment of the Financial Statements
1. Adjustment of the relevant items of the financial statements at the current year beginning according tothe new standards for financial instruments, the new standards for revenues and the new standards forlease implemented commencing from year 2020
√ Applicable □ Not applicable
Whether the accounts of the balance sheet at the beginning of the year shall be adjusted
√ Yes □ No
Unit: RMB
| Item | 31 December 2019 | 1 January 2020 | Adjusted amount |
| Advances from customers | 292,803,811 | -292,803,811 | |
| Contractual liabilities | 292,803,811 | 292,803,811 |
In July, 2017, the Ministry of Finance issued new Accounting Standards for Business Enterprises No. 14 - Revenue. According to theregulations, for the enterprises listed both at home and abroad and enterprises listed abroad which prepared financial statements byadopting international financial reporting standards or accounting standards for business enterprises, the new accounting standardshall be implemented from January 1, 2018, while for other domestic listed enterprises, it shall be implemented from January 1,2020.According to the above provisions, the Company has implemented the newly issued income standards since January 1, 2020. Thesales contract payment received in advance which was previously presented in "advances from customers " has been adjusted topresent in "contractual liabilities" since January 1, 2020.
2. Note to the retroactive adjustment of the previous comparative data according to the new standards forfinancial instruments and the new standards for lease implemented commencing from year 2020
□ Applicable √ Not applicable
III .Auditor’s Report
Whether the third quarter report has been audited or not
□Yes √No
The third quarter report of the Company has not been audited.
Board of Directors ofCSG Holding Co., Ltd.26 October 2020